SME Banking Scope In Bangladesh (Part-7)

SME Banking

Considering the volume, role and contribution of the SMEs, AB Bank has been patronizing this sector by extending credit facility of different types and tenor. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserves all out attention in plans, projection and forecasting.

As such the bank has emphasized on the following issues:

• To provide the best services to the SME sector.
• To increase the SME portfolio of ABBL significantly
• To improve the quality of ABBL’S portfolio.

SME Sector in which AB Bank has participated so far:

•   Agro machinery
•   Poultry
•   Animal Feed
•   Dairy Product
•   Fruit Preservation
•   Hotel & Restaurants
•   Garments Accessories
•   Leather Products
•   Plastic Product
•   Furniture : Wooden & Metal
•   Ink
•   Paint
•   Printing & Packaging
•   Wire & Cable
•   Aluminum
•   Cement & Lime Plaster
•   Clinics and Hospitals
•   Engineering & Scientific Instruments.

ABBL offers the following SME loan products:

       I.  Uddog loan.

    II.  Goti loan.

 III.  Aparajita loan.

 IV.  Proshar loan.

    V.  Choto puji loan.

 VI.  Digun loan.

Large Loan & Project Finance

•  In order to cater the demand of client of AB Bank has segmented its loan size. As per this segmentation any loan over TK 10.00 core falls under the preview of large loan unit.
•  In AB Bank, there is also a separate Project Finance unit who evaluate the business. The unit is entrusted to handle the portfolio in a focused manner. AB Bank is always in front to support establishment of new projects of diverse nature which will help to broaden the manufacturing arena to generate to employment.
•  At the moment AB has participation in 19 syndicated facilities. AB Bank’s exposure in the ongoing syndication is TK51560.29 lac which is diversified in the following ten sectors.

Company Profile

BRAC Bank is a fully operational Commercial Bank. Since inception in July 2001, the Bank’s footprint has grown to 56 branches, 30 SME Service Centers, 427 SME unit offices and 112 ATM sites across the country services are :

• SME ( Small and Medium Enterprises ) Banking
• Retail Banking
• Corporate Banking
• NRB Banking

Corporate Vision

Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh.

Corporate Mission

Sustained growth in Small & Medium Enterprise sector

Continuous low-cost deposit Growth with controlled growth in retail assets.

Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors.

Continuous endeavor to increase non-funded income

Keep our debt charges at 2% to maintain a steady profitable growth

Achieve efficient synergies between the bank’s branches, SME unit offices and BRAC field offices for delivery of remittance and Bank’s other products and services

Manage various lines of business in a full controlled environment with no compromise on service quality

Keep a divers, far flung team fully controlled environment with no compromise on service quality

Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality.

Core Values

Our Strength emanates from our owner – BRAC. This means, we will hold the following values and will be guided by BRAC as we do our work.

Value the fact that one is a member of the BRAC family

Creating an honest, open and enabling environment

Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit

Strive for profit & sound growth

Work as team to serve the best interest of our owners

Relentless in pursuit of business innovation and improvement

Value and respect people and make decisions based on merit

Base recognition and reward on performance

Responsible, trustworthy and law-abiding in all that we do.

SME Banking

BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped into the true suburb entrepreneurial initiatives.

Today, with over 14,500 crorers of loans disbursed till date, BRAC Bank is country’s largest SME financier that has made more than 320,000 dreams come true!

If you have a dream on which you trust, let us make it true together.

Loan Products

• Anonno Rin
• Apurbo Rin
• Prothoma Rin
• Durjoy
• Shomriddhi Rin
• Shompod Rin
• Shokti Rin

Deposit Product

• Prapti Current Account
• Prachurjo Fixed Account

ANONNO SME LOAN

What is ANONNO SME Loan?

ANONNO is a business loan to meet any kind of business needs, which starts from BDT 3 Lac to10 Lac.

No security required

Overdraft facility

Easy installment

Easy loan processing.

Eligibility

Any kind of business having valid trade license, which has been operating at least 2 or more years.

Sole proprietorship, Partnership or Private Limited company

Small & mid-sized businesses (Production, Trading, Service, Agro based products and others)

APURBO SME LOAN

What is APURBO SME Loan?

APURBO is a loan facility for Small & Medium Entrepreneurs. To meet any kinds of business needs, APURBO is offering BDT 1 million to BDT 5 million loans against registered mortgages.

Specialty of this loan

Term loan and overdraft based on your business needs.

Limited documents

10 to 50 Lac Loan

Easy installment and overdraft facility

Eligibility

Any kind of business having valid trade license, which has been operating at least 3 or more years.

Those who have property/land/building

PROTHOMA SME LOAN

What is PROTHOMA SME Loan?

Prothoma is a term loan for small scaled business operated by women entrepreneur, Maximum BDT 1 million is offered to meet business needs.

No security required

As low as 10% interest rate

Tenure from 1 to 4 years

Easy loan processing

Eligibility

Any kind of business having valid trade license, which is at least 2 years of old.

Sole proprietorship, Partnership or Private Limited Company

Small & mid-sized business (Production, Trading, Service and others)

DURJOY SME LOAN

What is DURJOY SME Loan?

To meet your business needs DURJOY is offering BDT 3 Lac to BDT 2.5 million Loan without any security.

Specialty of this loan

Up to BDT 25 Lac loan in the name of business

Easy installment up to 5 years

Convenient interest rat

Overdraft facility

Eligibility

Any kind of business having valid trade license, which has been operating for at least 3 years.

Sole proprietorship, Partnership or Private Limited Company

1 year bank statement

SHOMRIDDHI SME LOAN

What is SHOMRIDDHI SME Loan?

To meet import-export related expenses, post import expenses, tax/duty payment, local bill purchase and working capital, SHOMRIDDHI loan is offering BDT 1 Lac to BDT 10 million.

LC and LATR facility

Revolving loan, overdraft

Local bill discounting facility

Letter of Credit (LC)/Loan against trust receipt (LATR)

LC opening facility: from BDT 1 Lac to BDT 10 million

Up to 90% loan against LC

Revolving Loan

Import duty payment or goods purchase facility

Loan up to BDT 10 million

Local Bill Purchase

Loan up to BDT 10 million in export

Specialty of this loan

Easy loan processing

Convenient interest rate

Loan payment facility up to 180 days.

Eligibility

Any kinds of businesses having valid trade license and which has been operating for at least 3 years.

Sole proprietorship, Partnership or Private Limited Company.

SHOMPOD SME LOAN

 What is SHOMPOD SME Loan?

SHOMPOD is a loan facility starting from BDT1 million to BDT 35 million against home or business premise mortgage.

Specialty of this loan

With overdraft facility which will help you to meet your working capital need.

Loan against home or business premise mortgage to meet business needs.

Loan is also available to purchase business premise

Up to BDT 35 million loan facility

Installment facility up to 10 years

Convenient interest rate

Eligibility

Small & mid-sized of business having valid trade license, which has been operating for at least 3 years in Dhaka & Chittagong.

SHOKTI SME LOAN

What is SHOKTI SME Loan?

Business loan under which you can avail BDT 1 million to BDT 7 million to meet your any kind of business needs.

Loan against partial security or fixed deposit At least 1 year bank statement

PRACHURJO SME LOAN

“Prachurjo” is a lucrative fixed deposit for small and medium businesses. With a minimum 1,00,000 TK, any business enterprise having valid trade license can open this account.

Specialties

Tenure: Minimum 3 months and maximum 36 months

No fees except govt excise / duty on interest earned,

Interest is applicable on maturity

No pre-encashment fees

Who are eligible for this deposit?

Everyone involving in sole proprietorship, partnership and private limited companies

Small and medium typed businesses (Educational institution, NGO and Co-operative society and others)

Accounting Talks

•   Till date, BRAC Bank has served 3,20,000 entrepreneurs, with SME loans valued at BDT 144,330 million through its 424 SME Unit Offices.
•   A concerted effort from the largest business division of the country has ensured balance sheet growth alongside economy.
•   BDT 37,400 million asset disbursement was supplemented by BDT 8,970 million deposits. Fit-for-purpose strategies and strong drives towards both asset and liability made these successes possible. The year came to an end with a net positive growth in both asset and liability. 10% asset growth has been made by our own liability.
•   SME banking division has strengthened its foothold in Bangladesh more than ever before. As the core business of BRAC Bank Limited, SME Banking refined its widespread network by bringing all the unit offices under the Bank’s server network, thereby enabling faster communication with the Head Office.
•  The Medium Business unit was launched with a dedicated team for mid-tier customer.

Historical Background

Dutch-Bangla Bank Limited is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 inBangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996.

Dutch Bangla Bank Limited (DBBL) a public company limited by shares, incorporated in Bangladesh in the year 1995 under companies Act 1994. With 30% equity holding, the Netherlands Development Finance company (FMO) of the Netherlands is the international cosponsor of the Bank. Out of the rest 70%, 60% equity has been provided by prominent local entrepreneurs and industrialists & the rest 10% shares is the public issue. During the initial operating year (1996-1997) the bank received skill augmentation technical assistance from ABN Amro Bank of the Netherlands.

DBBL’s focus is to provide one counter service to clients covering: Commercial Banking (Deposit Accounts), Consumer Banking (Retail Baking) – Traveler Cheques- Foreign & Inland

Remittances, Financial Services, Corporate Banking, Asset & liability management, Liquidity &

capital Resources Management, Information technology, Human Resources. DBBL Internet

banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. It’s fast, easy, secure and best of all.

DBBL, since its inception was active in various social activities, which increased manifold over

the period of time and its growth. It is one of the fast growing leading online banks in private

sector. The emergence of Dutch-Bangla Bank Ltd. in the private sector is an important event in

the banking area of Bangladesh. The Netherlands Development Finance Company (FMO) of the

Netherlands is the international sponsor of the Bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe. Dutch-Bangla Bank Ltd. came into existence with joint venture as a public limited company incorporated in Bangladesh on June 26, 1995 with the primary objectives to carry on all kinds of banking business in and outside of Bangladesh. DBBL has started its business with foreign bank. DBBL commenced its business as scheduled bank with effect from July 04, 1995 with one branch-Motijheel Branch, Dhaka, with a motto to grow as a leader in the banking arena of Bangladesh through better counseling and effect service to clients and thus to revitalize the economy of the country. All the branches are currently providing truly On-Line banking facility. DBBL resumed its operational activities initially with an authorized capital of Tk.400 million and paid up capital of Tk.202.14 million.

An over view of DBBL

Dutch-Bangla Bank is a second generation commercial private Bank. During the period of its

operation, this bank creates a milestone of success in banking sector. This bank holds an experienced team of banking professional. They achieve this success because of their experienced banking professional team, proper management & so on. Dutch-Bangla Bank Limited is a Bangladesh–Netherlands joint venture scheduled commercial bank established in Bangladesh with the primary objective to carry on all kinds of banking business in and outside of Bangladesh. Starting with one Branch in 1996, DBBL has expanded to thirty nine (39) branches including nine Branches outside of the capital. To provide client services all over Bangladesh it has established a wide correspondent banking relationship with a number of local banks. To facilitate international trade transactions, it has arranged correspondent relationship with large number of international banks which are active across the globe.

In addition to its banking activities, Dutch-Bangla Bank Limited takes part in different national

activities promoting sports, culture, social awareness, etc. Participation in these activities as

sponsors is part of its business development policy.

Philosophy of DBBL

The objectives of Dutch-Bangla Bank Limited remains to offer modern & innovative products &

services to its clients in Bangladesh the partnership with FMO is optimistically scene to offer

scopes opportunities to draw on modern tools & techniques of Banking from western world which could be blended with the currently prevalent local customs & practice. The Bank is committed to being a sophisticated prominent and professional institution, providing a one window service to its customers. During the first five years Dutch Bangla Bank’s strategy was focused on continuing in provident of internal procedures and operating structures, to have a greater control on the quality of our business and to provide better management direction. After five years of working on the Banks structure, its culture and controls, the management is confident that the Bank can move forward on a rapid growth path. The DBBL’s corporate philosophy is to build its nonfunded fees and commission income stream, thus reducing its reliance on interest income alone.

Core objective of DBBL

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and

satisfaction and to become their first choice in banking. Taking cue from its pool esteemed

clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that uphold and

epitomize its vaunted marquees “Your Trusted Partner”

Focus of DBBL

DBBL’s focus is to provide one counter service to our clients covering:

Commercial Banking (Deposit Accounts)

Consumer Banking (Retail Baking)-

1. Traveler Cheques
2. Foreign & Inland Remittances
3. Financial Services
4. Corporate Banking
5. Asset & liability management
6. Liquidity & capital Resources Management
7. Information technology
8. Human Resources

Mission

Each business unit needs to define its specific mission within the broader company mission.

Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. “Profits alone” do not hold a central focus in the Bank’s

operation; because “man does not live by bread and butter alone”. Mission statements are at their

best when they are guided by a vision.

Vision

“To become a leading banking institution and play a pivotal role in the development of the

country”

Vision, a compelling view of a future yet to be, creates meaning and purpose which catapults both individuals and organizations to high levels of achievement. Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a

cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and

adventures that contributes towards human development.

Strategies of DBBL

The strategies are as follows:

• To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund
• To strive for customer satisfaction through quality control and delivery of timely services
• To identify customers’ credit and other banking needs and monitor their perception towards our performance in meeting those requirements.
• To review and update policies, procedures and practices to enhance the ability to extend better service to customers.
• To train and develop all employees and provide them adequate resources so that customers’ need can be reasonably addressed.
• To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion
• To diversify portfolio both in the retail and wholesale market
• To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.

Objectives of DBBL

• To earn and maintain CAMEL Rating ‘Strong’
• To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
• To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
• To introduce fully automated systems through integration of information technology.
• To ensure an adequate rate of return on investment
• To keep risk position at an acceptable range (including any off balance sheet risk)

Departments of DBBL

Human Resources Department

Success of any organization largely depends on the efficiency & competence of its manpower.

The organization provides a comprehensive range of human resources services to staff and managers and all prospective employees. A full list of staff and their relevant areas of responsibility are conduct here. This includes Senior Management, Operations group – including

HR Advisors, Staff Development, and Job Evaluation & Systems & Management Information

group.

Our vision is to be a department that leads on and delivers the University’s Staff Experience

Strategy, works as a business partner within the organization and leads by example in relation to

university values.

Services provided under this department:

We provide the following range of services:-

• Strategic planning and organizational development
• faculty and departmental operational advice, support and services
• staff development
• projects and information management

Equality and Diversity

The organization is committed to the support and implementation of the equality and diversity

agenda as laid out in our policy.

Corporate governance

Board of directors                     

International Division

Internal trade means foreign currency and includes all deposits, credit and balances payable

in foreign currency as well as all foreign currency instruments, such as, Drafts, Travelers Cheques, Bills of Exchange, and Promissory Notes payable in any foreign country. Anything that conveys a right to wealth in another country is Foreign Exchange.

DBBL provides premium quality service for repatriation and collection of remittance with the help of its first class correspondents and trained personnel. By introducing on-line banking service and becoming a SWIFT Alliance Access Member, which enable its branches to send and receive payment instruction directly, which helps provide premium services.

Credit department

Risk is an integral part of business & the main role of our risk management principle is to find the optimal balance of risk & return. Bangladesh bank has undertaken a project to install a core risk management system in every bank. DBBL Bank Ltd installing the same system in respect to Asset liability management, Foreign exchange management, internal control & compliance, Anti money laundering. The bank prudently controls asset allocation through limiting exposure to industry sector & setting client limit. Moreover, the bank approved a new organization structure to accommodate core risk management perspective.

Loans and Advances

IT department

Dutch-Bangla Bank Limited (DBBL) undertook a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies. DBBL and BASIS organized IT award-giving ceremony in this regard. The award Ceremony was held on 30th November 2005, which was the day before last day of BASIS SOFfEXP02005 (November 27-December 01, 2005). This was a gala evening (with dinner and cultural program) attended by around 700 dignitaries including government high officials & policy makers, corporate heads, representatives from development agencies, IT policy makers, academicians and the IT industry members. In this regards, DBBL’s contribution in supporting this event was 50% of the estimated cost with Tk.6.25 Lac.

PRODUCTS AND SERVICES

Products and services offered by DBBL

• Retail Banking
• Remittance and collection
• Import and export handling and financing
• Corporate Banking
• Project Finance
• Investment Banking
• Consumer credit
• Agriculture Loan
• Real time any branch banking
• 24 Hours Banking through ATM
  • DBBL-NEXUS ATM & Debit card
  • DBBL-Maestro/Cirrus ATM & Debit card
  • DBBL Credit card
  • Internet Banking
  • SMS Banking
  • On line Banking through all Branches

Banking Products

Various deposits:

• Savings Deposit Account
• Current Deposit Account
• Short Term Deposit Account
• Resident Foreign Currency Deposit
• Foreign Currency Deposit
• Convertible Taka Account
• Non-Convertible Taka Account
• Exporter’s FC Deposit(FBPAR)
• Current Deposit Account-Bank
• Short Term Deposit Account-Bank

Term Deposit

Loan & Advances

• Loan against Trust Receipt
• Transport Loan
• Consumer Credit Scheme
• Real Estate Loan (Res. & Comm.)
• Loan Against Accepted Bill
• Industrial Term Loan
• Agricultural Term Loan
• Lease Finance
• Other Term Loan
• FMO Local currency Loan for SME
• FMO Foreign currency Loan
• Cash Credit (Hypothecation)
• Small Shop Financing Scheme

ATM Services

We can find DBBL ATMs beside our home, in our office premise, nearby market, university,

college & school premises, Airport, Railway stations etc., throughout the country. Using any of

the DBBL ATM pools any where in the country, you can perform the following:

• Account balance enquiry
• Cash withdrawal – 24 hours a day, 7 days a week, 365 days a year
• Cash deposit to a certain number of ATMs any time
• Mini statement printing
• PIN (Personal Identification Number) change

All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL-Maestro/Cirrus Debit card and  DBBL Credit card

Treasury

DBBL is well equipped for treasury operation through subscribing Reuters’s terminal and operating in SWIFT network. It is also well equipped with competent human resources for efficient dealing.

DBBL’s treasury quotes competitive exchange rate for major currencies:

• Spot Sale/Purchase
• Forward Sale/Purchase
• Money market Inter bank & Corporate
• SWAPS

Account Service

DBBL provides all the accounts services as prescribed by the guidelines of Central Bank (Bangladesh Bank). DBBL offers competitive interest rate and provides premium quality services for the accounts. Account services are:

• Foreign Currency Account
• Non-Resident Foreign Currency Deposit Account (NFCD)
• Resident Foreign Currency Deposit Account (RFCD)
• Convertible and Non-Convertible Taka Account

Foreign Trade

DBBL extends finance to the importers in the form of:

• Opening of L/C (Foreign/Local)
• Credit against Trust Receipt for retirement of import bills.
• Short term & medium term loans for installation of imported.

Import Finance

DBBL extends finance to the importers in the form of:

1. Opening of L/C

2. Credit against Trust Receipt for retirement of import bills.

Export Finance

Pre-Shipment Finance

Pre-Shipment finance in the form of:

I) Opening of Back-to-Back L/C

II) Export Cash Credit

Post-Shipment Finance

Post-Shipment finance in the form of:

I) Foreign/Local Documentary Bills Purchase

II) Export Credit Guarantee

III) Finance against cash incentive

Foreign Remittance

DBBL provides premium quality service for repatriation and collection of remittance with the

help of its first class correspondents and trained personnel. By introducing on-line banking service and becoming a SWIFT Alliance Access Member, which enable its branches to send and receive payment instruction directly, which helps provide premium services. Remittance services

provided by DBBL are:

• Inward Remittance: Draft, TT
• Outward Remittance: FDD, TT, TC and Cash (FC)

Western Union

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer

company in the world. This modern Electronic Technology based money transfer company has

earned world wide reputation in transferring money from one country to another country within

the shortest possible time. Dutch-Bangla Bank Limited has set up a Representation Agreement

with Western Union Financial Services Inc. U.S.A. as on 14th February 2006.

DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts anytime

anywhere from home, office or when traveling. Internet Banking gives customer the freedom to

choose his/her own banking hours. It can save time, money and effort. It’s fast, easy, secure and

best of all.

Using any of the DBBL ATM pools any where in the country, you can perform the following:

• Securities with DBBL Internet Banking
• A/c Opening & Accessing Internet Banking
• Internet Banking Features
• Terms & Conditions of Internet Banking

SME Banking

SME cash credit

SME term loan

Small shop financing scheme

More parts of this post-

SME Banking Scope In Bangladesh.(Part-1)

SME Banking Scope In Bangladesh.(Part-2)

SME Banking Scope In Bangladesh (Part-3)

SME Banking Scope In Bangladesh (Part-4)

SME Banking Scope In Bangladesh (Part-5)

SME Banking Scope In Bangladesh (Part-6)

SME Banking Scope In Bangladesh (Part-7)

SME Banking Scope In Bangladesh (Part-8)

SME Banking Scope In Bangladesh (Part-9)