Report on SME Banking Scope In Bangladesh (Part-8)

History of EXIM Bank

Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated business tycon in the Garments business in Bangladesh became the Honorable Chairman after the demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging views on problems being faced by the banking sector of Bangladesh and for formulating common policy guidelines in addressing such problems.

This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.

In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kazi served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centers where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATMs and SMS banking.

In 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long experience in the Shariah Based Islami banking in Bangladesh, EXIM Bank is going to take a new shape where IT-enable banking service will spread in the market.

Our Vision

The gist of our vision is ‘Together Towards Tomorrow’. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in Exim Bank, we believe, the line of excellence is never ending. Bank’s strategic plans and networking will strengthen is competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve our operational success.

Our Mission

The Bank’s mission gives emphasis to:

• Provide quality financial services especially in Foreign Trade
• Continue a contemporary technology based professional banking environment
• Maintain corporate & business ethics and transparency at all levels
• Sound Capital Base
• Ensure sustainable growth and establish full value to the honorable stakeholders
• Fulfill its social commitments and
• Above all, to add positive contribution to the national economy

Corporate Culture

During the last two decades Corporate Culture has become an important theme in business as an intangible concept which clearly plays a meaningful role in corporations, affecting employees and organizational operations. It is not the only determinant of business success or failure, a positive culture can be a significant competitive advantage over organizations with which a firm competes. We, as an amenable bank, believe if the employees identify with the culture, the work environment tends to be more enjoyable, which boosts morale and leads to increased levels of teamwork, sharing of information, and openness to new ideas.

Products & Services

Retail Banking

– Deposits

– Investments

– Cards

– Internet Banking

– SMS Banking

– Locker Services

Corporate Banking

– Investments

– Foreign Exchange & Trade Finance

– Correspondent Banking

– Import Finance

– Export Finance

SME Banking

– EXIM Uddyog

– EXIM Abalamban

Agri Banking

– EXIM Kishan

Remittance

Foreign Remittance

– Exim Exchange Company (UK) Ltd.

– Exim Exchange Company (Canada) Ltd.

– SWIFT

– International Operation

SME Banking

EXIM Uddyog

EXIM UDDYOG is an investment scheme facilitating project aimed to provide fixed and working capital in the field of small & medium level poultry, dairy, fisheries, and agro-based industries etc spread all over Bangladesh through our branches & SME Service Center. The product offers terminating investment facilities for the purpose of working capital finance and/or fixed assets purchase. The investment risk of the product is to cover by a strict evaluation and assessment of customer’s credit history and track record with any bank/financial institution in Bangladesh.

Features of investment

• To extend investment facilities for BMRE of existing poultry/dairy/fisheries farm.
• To ensure investment for real entrepreneur of small & medium farm in the light of Islami Shariah.
•  To provide investment facility very promptly and easiest condition.
•  of investment single or multiple phases according to the nature & requirement of business.
•  Facility of repayment through single or multiple installments according to the return of business.
•  In case of working capital, opportunity of renewal of the limit on expiry.
•  Opportunity of enhanced investment on the basis of satisfactory business transaction and business requirement.

Rules of investment

• A Bank account holder with a valid trade license.
•  An application in a prescribed form.
•  Record of successful business operation for 02 (two) years.
•  For small entrepreneur limit of investment is Tk. 2.00 lac to Tk. 10.00 lac.
•  For fixed capital validity is 01 (one) to 03 (three) years and for working capital validity is 01(one) year, which is renewable on expiry upon satisfactory business transaction.

Rate of Profit / Rent

• For fixed/working/capital rant/profit rate will be simple and to be fixed by the bank time to time.
•  Other charges (for fixed investment)

– Risk fund

– Supervision/management fees [to be fixed by the bank time to time]

Equity investment ratio

• For small entrepreneur: 50:50
• For medium entrepreneur: 60:40

Mode of investment

• For fixed capital: Izara Bill Bia (IBB)
• or working capital: Bai-Muajjal (BIAM) / Bai-Murabaha

Source of investment

• Bank’s own fund

Security

• Primary: hypothecation/mortgage on fixed and floating assets of the business.
• collateral:

For small entrepreneur: if the project is situated on own land, mortgage of the land and if applicable personal guarantee of (with net worth statement) 02 (two) local persons (acceptable to bank). If the project is situated on rented or leased property, security may be asked for on the basis of nature/status of the investment proposal.

For medium entrepreneur, satisfactory security should be provided to cover the investment.

Criteria/factors for selection of investment customer

• Value of fixed asset.
• Expertise of entrepreneur.
•  Annual transaction & income.
•  Compliance of existing investment rules & regulation.

EXIM Abalamban

EXIM ABALAMBAN is an investment scheme facilitating project aimed to provide fixed and working capital in the field of small & medium level General business and Workshop & light engineering etc spread all over Bangladesh through our branches & SME Service Center. The product offers terminating investment facilities for the purpose of working capital finance and/or fixed assets purchase. The investment risk of the product is to cover by a strict evaluation and assessment of customer’s credit history and track record with any bank/financial institution in Bangladesh.

Feature of investment

• To extend investment facilities for operating and extending small and medium level business & industries.
•  To provide investment facility very promptly and easiest way.
•  Disbursement of investment single or multiple phases according to the nature & requirement of business.
•  Facility of repayment at a time or installments according to the return of business.
•  In case of working capital/ trading, opportunity of renewal of the limit on expiry.
•  Opportunity of enhanced investment on the basis of satisfactory business transaction and business requirement.

Rules of investment

• An application in a prescribed from.
•  A valid trade license with a document of establishment of the business.
•  Field of investment:
•  General business- Working capital investment
• Workshop & light engineering Fixed & working capital investment.
•  Rice mill (Chatal)- – Fixed & working capital investment.

Limit of investment

• For small entrepreneur limit of investment will be within Tk. 2.00 lac to Tk. 10.00 lac.
•  For medium entrepreneur limit of investment will be within Tk. 10.00 lac to Tk. 50.00 lac.
•  For fixed capital validity is 01(one) to 03(three) years and for working capital validity will be 01(one) year, which is renewable on expiry upon satisfactory business transaction.

Rate of Profit / Rent

• For fixed/working/capital rant/ profit rate will be simple and to be fixed by the bank time to time.
•  Other charges (for fixed investment)

 – Risk fund to be fixed by the bank time to time

 – Supervision/ management fees

Equity investment ratio

• For small entrepreneur : 50:50
• For medium entrepreneur : 60:40

Mode of investment

• For fixed capital : Izara Bil Bia (IBB)
•  For working capital : Bai- Muajjal (BAIM)/ Bai-Murabaha

Source of investment

• Bank’s own fund

Security

• Primary: hypothecation/ mortgage on fixed and floating assets of the business.
•  Collateral:
•  For small entrepreneur: if the project is situated on own land, mortgage of the land and if applicable personal guarantee of (with net worth statement) 02 (two) local persons (acceptable to bank). If the project is situated on rented or leased property, security may be asked for on the basis of nature /status of the investment proposal.

Criteria/ factors for selection of investment customer

• Value of fixed asset.
•  Expertise of entrepreneur
• Annual transaction & income.
•  Compliance of existing investment rules & regulation.

History

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa.

The Chartered Bank

    Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.

    Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

    Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama.

    Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.

    In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus Branches. This established a presence in the Gulf.

The Standard Bank

    Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, in January 1863.

    Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.

    Expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices.

    In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services – areas in which the Group had particular strength and expertise.

Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extended the customer and geographic reach and broadened the product range that Standard Chartered offers.

Our business

Standard Chartered PLC, listed on the London, Hong Kong and Mumbai stock exchanges, ranks among the top 20 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last few years primarily as a result of organic growth, supplemented by acquisitions.

Consumer Banking

Consumer Banking offers a broad range of products and services to meet the borrowing, wealth management and transaction needs of individuals.

Wholesale Banking

Wholesale Banking has a client-focused strategy, providing trade finance, cash management, securities services, foreign exchange and risk management, capital raising and corporate finance solutions.

SME Banking

Our SME Banking division offers products and services to help small and medium enterprises manage the demands of a growing business, including the support of our international network and trade expertise.

Islamic Banking

Standard Chartered Saadiq’s dedicated team provides comprehensive international banking services and a wide range of Shariah-compliant financial products based on Islamic values.

Standard Chartered Private Bank

Our Private Bank advisors and investment specialists provide customised solutions to meet the unique needs and aspirations of high net worth clients.

SME Banking

The constant economic growth in Bangladesh means ample opportunities for you to grow your dream business. However, countless obstacles, intense business environment and steep competition require you to have the very best banking partner. This is where Standard Chartered Bank’s SME Banking comes into play with its wide range of business responsive products, services and superior customer service.

We make available:

• Business Installment Loan
•   Orjon
•   Loan Against Property
• Trade & Working Capital
• Business Priority Account
• Business Premium Account
• Business Plus Account
• Straight 2 Bank
• Door Step Banking
• Transaction Services

Business Installment Loan

Do not let fund shortage hold back your business expansion. Fight back all fund related constrains with Standard Chartered Bank’s Business Installment Loan. Inject up to BDT 7 Million to truly make your business fly!

Features

This loan will help you meet your financial needs for your business expansion. You can make long term investments with this business loan and build up your equity by repaying the loan in convenient equated monthly installments (EMI). You can avail this loan through some simple documentation and against competitive cash securities.

• Maximum Loan: BDT 7,000,000 (Seventy Lacs) only
• Minimum Loan: BDT 1,000,000 (Ten Lacs) only
• Interest Rate: 19.5% per annum
• Tenor: 3 Years – 5 Years (i.e. 36 to 60 EMI payments)
• Cash Security: 30% to 50% of the loan amount

Following table indicates the monthly repayment amount or EMIs against different loan amounts and tenors:

Please note that the above figures are only indicative and subject to change at the sole discretion of Standard Chartered Bank without any prior notice.

Eligibility

Any Business fulfilling the following criteria can apply for this loan:

• At least 3 years or more experience in the same business
• Minimum annual turnover of BDT 12,000,000 (One crore twenty lacs) only

Documents

The following denotes the documents required for any business to apply for this loan:

Please note that the above requirements are not exhaustive and the bank may require further documentation for credit assessment on a case to case basis.

Charges

• Loan Processing Fee: 1% of the approved loan amount
• Early Settlement Charge: 5% on outstanding amount if repaid at any given time before maturity of the loan
• VAT and Stamp Charge: All charges and fees are subject to 15% VAT, to be paid by the customer. Stamp charge will be at actual to be paid by the customer.

Orjon

In Bangladesh the number of women-owned company continues to grow, and Standard Chartered Bank is dedicated in helping the women entrepreneurs to grow their business by offering competitive Business Loans specially designed for women.

Standard Chartered’s Orjon provides the liquidity you need to grow your business or meet your cash flow requirements. The loan enables you to obtain financing without any requirement of land or property collateral.

Features:

‘Orjon’ has been crafted to perfection to support the business needs of women entrepreneurs. The following features depict the very reasons as to why ‘Orjon’ can be instrumental in your business success:

• Maximum Loan: BDT 7,000,000 (Seventy Lacs) only
• Minimum Loan: BDT 1,000,000 (Ten Lacs) only
• Interest Rate: 18.5% per annum
• Tenor: 3 Years – 5 Years (i.e. 36 to 60 EMI payments)
• Cash Security: 30% to 50% of the loan amount

Following table indicates the monthly repayment amount or EMIs against different loan amounts and tenors:

Please note that the above figures are only indicative and subject to change at the sole discretion of Standard Chartered Bank without any prior notice.

Eligibility

Any Business fulfilling the following criteria can apply for this loan:

• At least 3 years or more experience in the same business
• Minimum annual turnover of BDT 12,000,000 (One crore twenty lacs) only

Documents

The following denotes the documents required for any business to apply for this loan:

Please note that the above requirements are not exhaustive and the bank may require further documentation for credit assessment on a case to case basis.

Charges

• Loan Processing Fee: 1% of the approved loan amount
• Early Settlement Charge: 5% on outstanding amount if repaid at any given time before maturity of the loan
• VAT and Stamp Charge: All charges and fees are subject to 15% VAT, to be paid by the customer. Stamp charge will be at actual to be paid by the customer.

Loan Against Property

At Standard Chartered we strive to meet your needs in a competitive and dynamic business environment. We understand that, as an SME, you require quick access to cash, and the flexibility to leverage your assets to fuel your business growth.

Standard Chartered’s Loan Against Property provides the liquidity you need

to grow your business or meet cash flow requirements. The loan enables you to leverage your property to obtain financing.

Features

Loan against property is very flexible and is designed to meet the different financial needs of your business. Want to expand your business leveraging on your existing property? With Loan Against Property you can undertake long term investments for expansion. In the process Loan Against Property also enables you to build up business equity by repaying the loan in monthly installments.

• Maximum Loan: BDT 28,000,000 (taka two crore eighty lac) only
• Minimum Loan: BDT 1,400,000 (taka fourteen lac) only
• Interest Rate: 16% per annum
• Tenor: 3 Years – 10 Years (i.e. 36 to 120 EMIs payments)
• Maximum % of loan amount against market value of the property:
  For Commercial Property 60% of property’s current market value
  For Residential Property 70% of property’s current market value

Following table indicates the monthly repayment amount or the equal monthly installments (EMI) is given below:

Please note that the above figures are only indicative and subject to change at the sole discretion of Standard Chartered Bank without any prior notice.

Eligibility

To be eligible to apply for this loan, the applicant must fulfill the following criteria:

• At least 3 years of experience in same business
• A minimum annual turnover of BDT 7,000,000 (Taka Seventy Lac) only

Documents

The following denotes the documents required for any business to apply for this loan:

Property Documentation Requirement:

1. For Government/Leasehold Land:
   1. Lease Deed/ Ownership Deed (photocopy)
   2. Baya Deed for at least 25 years, if any (photocopy)
   3. Development Agreement/ Joint Venture Agreement with the land owner/ developer
   4. Power of Attorney (if any)
   5. Power of Attorney Acceptance Letter from lessor of the property
   6. Mutation (any one)

a)      Mutation Letter from RAJUK/ CDA

b)      Mutation Letter from National Housing Authority (NHA)

c)      Mutation Letter from Ministry of Works

7. Duplicate Carbon Receipt (DCR) with Mutation Order Sheet
8. Up to date Municipality Tax Receipt
9. Up to date Land Tax Receipt
10. Non-Encumbrance Certificate (NEC)
11. Approved Plan/ Layout Plan and Approval Letter by RAJUK/CDA/Concerned Authority
12. Any other documents as advised by the bank’s lawyer
1. For Private/Freehold Land:
   1. Ownership Deed (photocopy)
   2. Baya Deed for atleast 25 years, if any (photocopy)
   3. Development Agreement/ Joint Venture Agreement with the land owner/ developer
   4. Power of attorney (if any)
   5. Recent Survey Report (i.e. Math Parcha Duly attested)
   6. CS, SA, RS Parcha (PS, BS, RS Parcha- only applicable for Chittagong)
   7. Mutation Parcha and Mutation Proposal Sheet
   8. Duplicate Carbon Receipt (DCR) with Mutation Order Sheet
   9. Up to date Municipality Tax Receipt
   10. Up to date Land Tax Receipt
   11. Non-Encumbrance Certificate (NEC)
   12. Approved Plan/ Layout Plan and Approval Letter by RAJUK/ CDA/ Concerned Authority
   13. Any other documents as advised by the bank’s lawyer

Please note that the above requirements are not exhaustive and the bank may require further documentation for credit assessment on a case to case basis.

Charges

• Loan Processing Fee: 1.5% of the approved amount
• Valuation Fee: BDT 5000 per property
• Legal fee: BDT 7000 property
• Early Settlement Fee: 5% on outstanding amount if repaid at any given time before maturity of the loan
• VAT and Stamp Charges: All charges and fees are subject to 15% VAT, to be paid by the customer. Stamp charge will be at actual to be paid by the customer.

Please note both valuation and legal fees are non-refundable and inclusive of processing fee of 1.5%+VAT of the loan. Both fees will be discounted from the said processing fee at the time of loan disbursement if the loan is approved by the bank, the facility is availed by the customer and the property(s) are mortgaged in favor of the Bank.

Trade and Working Capital Financing

Here at Standard Chartered Bank your needs and our offers go hand in hand. If your business requires various combinations of banking facilities then our Trade and Working Capital Financing is here to provide you the perfect blend.

The lists of benefits that Standard Chartered Bank offers to face your needs are:

• Letter of Credit
• Loan Against Trust Receipt (LATR)
• Revolving Loan (RL)
• Local Bill Discounting (LBD)
• Term Loans
• Bank Guarantee
• Shipping Guarantee
• Foreign Exchange Forward
• Overdraft Facilities

Features

The beneficial features of Standard Chartered’s Trade and Working Capital are:

• Facilities of up to BDT 120,000,000 (taka twelve crore) only for single customers and up to BDT 150,000,000 (taka fifteen crore) only for groups
• Fast access to trade lines and transactions
• Dedicated experts to support with all your banking needs
• Easy access to operational accounts
• Competitive rates for foreign exchange services
• Wide options of instruments to serve as security or collateral
• Acceptable collaterals: Property, Cash/Bond/FD, Stock Hypothecation, Personal Guarantee, Corporate Guarantee, etc.

Eligibility

To avail these benefits a business must fulfill the following criteria:

• Minimum Annual turnover of BDT 200,000,000 (Taka twenty crore) only
• 3 years of business experience

Business Priority Account

As you deserve the best, we offer your Business Priority Account through which you will enjoy the privileges of personalized and superior account services for your business.

Benefits

• Tiered Interest Rate
• Online Banking facility across all Standard Chartered branches
• Access to ATMs (Sole Proprietorship Only)
• Internet Banking and SMS Banking
• Evening Banking Facility in select Branches
• 24-hour ContactCenter (Sole Proprietorship Only)
• Experienced Relationship Manager to take care of all your daily banking requirements
• FREE Issuance of Pay Order and Demand Draft
• FREE Online Intercity Transaction Facility
• FREE Over-the-Counter Transaction
• FREE Monthly Account Statements
• FREE Daily e-Statements
• FREE Exclusively Designed Personalized Cheque Book
• A host of other exclusive privileges offered by Priority Banking, including free valet parking, discounts, fee waivers and privileges

Eligibility

By maintaining a minimum half-yearly average balance of BDT 1,000,000, any of the following type of business entities & individuals can benefit from Business Priority Account

• Sole Proprietorship
• Partnerships
• Self-Employed Professionals
• Limited Liability Company (LLC)
• Local Development Organizations (Only Liability Relationship)

 Business Premium Account

The Business Premium Account has been designed to create a relevant and exclusive package that will make your business thrive. By becoming a Business Premium Accountholder, you can enjoy the following distinctive services:

Benefits

• Tiered Interest Rate
• Online Banking facility across all Standard Chartered branches
• Access to ATMs (Sole Proprietorship Only)
• Internet Banking and SMS Banking
• Evening Banking Facility in select Branches
• 24-hour ContactCenter (Sole Proprietorship Only)
• Team of Relationship Managers
• FREE Exclusively Designed Personalized Cheque Book
• FREE Online Intercity Transaction Facility.
• FREE Over-the-Counter Transaction
• FREE Monthly Account Statements
• FREE Daily e-Statements

Eligibility

By maintaining a minimum half-yearly average balance of BDT 500,000, any of the following type of business entities & individuals can benefit from Business Premium Account

• Sole Proprietorship
• Partnerships
• Self-Employed Professionals
• Limited Liability Company (LLC)
• Local Development Organizations (Only Liability Relationship)

 Business Plus Account

Standard Chartered has put together the custom-made Business Plus Account especially designed to support the ambitious growth of SMEs such as yourself. By becoming a Business Plus Accountholder, you can enjoy the following distinctive services:

Benefits

• Tiered Interest Rate
• Online Banking facility across all Standard Chartered branches
• Access to ATMs (Sole Proprietorship Only)
• Internet Banking and SMS Banking
• Evening Banking Facility in select Branches
• 24-hour ContactCenter (Sole Proprietorship Only)
• Free up-gradation from normal Current Account to Business Account
• FREE 1st Cheque book
• FREE Out-Station Cheque Collection
• FREE Monthly Business Statements

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)