Working Process of Retail Banking Operations of BRAC Bank

Main principle of this report is to analysis Working Process of Retail Banking Operations of BRAC Bank Limited. Other objectives are to know the work process and monitoring system of Retail Banking Operations and to know how to complete the steps of the working process. Report mainly focus on the Retail Banking Procedures which is must for the Working process and to know the terms and conditions of Retail Banking loans. Finally analysis the disbursement and recovery procedures of RBO loans and make some policy implications and conclusion to further the development of Retail Banking loan products of BBL.

Introduction

Modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes in the banking system also brought revolutionary changes in a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better, qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright in the future.

Nationalized Commercial Banks (NCB) were established in Bangladesh in 1972 through amalgamation of twelve commercial banks that were operating in pre-independent Bangladesh.  Allowing the poor access to fund, reducing capital flight to foreign countries, and increasing domestic investments were some of the basic objective of this Nationalization.  That means a society with wealth distributed as equitably as possible.  But with time difference those bank have changed their policies and strategies, which was not fulfilling the class banking policies of the government.  On an evaluation of the activities of commercial banks, it has been observed that the progresses made by the banking industry since nationalization was not impressive.  The nationalized banks could not play the due role in the implementation of government programs and policies. Hence, a trend of de-nationalization of banks started from mid 80’s.

In the meantime, the policy of the government towards banking industry regarding economic management has changed since 1976.  This year private sector has been entrusted to play a bigger role in the economy than before.  Accordingly, in order to provide more credit to local investors the private sector banking had been introduced.  Government decided to allow setting up of local Private Commercial Banks (PCB) in addition to Nationalized Commercial Banks (NCB) operating in the country.

Banks today are under great pressure to perform to meet the objective of their stockholders, employees, depositors and borrowing customers, while somehow keeping government regulators satisfied that the bank’s policies, loan and investment are sound.  For any bank, loans and advances constitute the largest portion of asset section in Balance Sheet.  Moreover, interest from loan is the prime source of income for a bank.  Hence risk, liquidity, and profitability – virtually all these three depend on how the loan disbursement policy has been made and how the loan portfolio is being managed.  It is argued that poor performance of a bank is not only due to liquidity crises, but also for the loans that are become classified.  Every individual bank should have a system, which can monitor the creditors of the bank.  An extensive investigation and research work can be done to see bank’s current stand point on the classified loan monitoring and its effect on the profitability of the bank.  For this study we will be considering Brac Bank Limited as our primary data provider and will give us full support to make the paper a comprehensive one.

The Bangladesh Bank is now carrying out a reform program to ensure quality services by the banks. Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. Bangladesh Bank is also responsible for planning the government’s monetary policy and implementing it thereby.

Every bank has different divisions and every division has units or departments and every department has their own functions to serve the customers according to customer’s requirement. The departments are:

• General Banking
• Export & Import
• Loans & Advances

Background of BRAC Bank Limited

BRAC Bank Ltd is a scheduled commercial bank in Bangladesh. BRAC Bank committed its business operation on 4^th July 2001, in Dhaka, Bangladesh. This bank is mainly owned by the largest NGO in Bangladesh-BRAC (Bangladesh Rural Advancement Committee). The bank has positioned it self as a new generation bank with a focus to meet diverse financial needs of the economy.

About BRAC Bank Limited

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shorecap International, has been the fastest growing Bank in 2004 and 2005. At the year end of 2006, BRAC Bank had recorded a 103 percent growth in assets, and a 65 percent growth in liabilities, with an operating profit of 84 percent over the previous year 2006.

A fully operational commercial bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last four years of operation, the Bank has disbursed over BDT 1200 crore in loans to nearly 50000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh.

BRAC

BRAC, a national, private organisation, started as an almost entirely donor funded, small-scale relief and rehabilitaton project initiated by Fazle Hasan Abed to help the country overcome the devastation and trauma of the Liberation War and focused on resettling refugees returning from India. Today, BRAC has emerged as an independent, virtually self-financed paradigm in sustainable human development. It is one of the largest Southern development organisations employing 97,192 people, with 61% women, and working with the twin objectives of poverty alleviation and empowerment of the poor.

Today, BRAC Bank is one of the fastest growing banks in the country. In order to support the planned growth of its distribution network and its various business segments, BRAC Bank is currently looking for ambitious, goal oriented, enthusiastic, individuals for various business operations.

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shorecap International, has been the fastest growing Bank in 2004 and 2005. The Bank operates under a “double bottom line” agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.

A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank’s footprint has grown to 36 branches, 327 SME unit offices and 16 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through 2006. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country. Over the years, the bank has been expanding its service coverage through introduction of new branches at different strategically important areas of the country.  It is sponsored by a number of entrepreneurs representing various business groups with exposure in Garments, Textile, Steel & Engineering, Financial, Insurance, Electronics, and Cement and Construction Sectors.  The bank has its authorized capital Tk. 2,00 cores. It provides a wide range of commercial banking services.  As a whole, corporate loans account for 40% of the bank’s loan portfolio, while retail loans account for the rest 60% as on 31st December 2004.  The bank has 22 branches, with staff strength of 925 as on 31st December 2004.

The reason BRAC Bank is in business is to build a profitable and socially responsible financial institution focused on markets and businesses with growth potential, thereby assisting BRAC and stakeholders build a: just, enlightened, healthy, democratic and poverty free Bangladesh. This means to help make communities and economy of the country stronger and to help people achieve their dreams. They fulfill the purpose by reaching for high standards in everything they do for their customers, their shareholders, their associates and their communities upon, which the future prosperity of their company rests. They all know that how important it to choose the right career and employer, and that is the reason why they want to give you the clearest possible information about their organization.

International Finance Corporation (IFC)

The International Finance Corporation (IFC) is a member of the World Bank Group and is headquartered in Washington, DC. Established in 1956, IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives.

IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. The organization promotes sustainable private sector investment in developing countries that is economically beneficial, financially and commercially sound, and environmentally and socially sustainable; as a way to reduce poverty and improve people’s lives.

It is the belief of the organization that sound economic growth is the key to poverty reduction; that it is grounded in the development of entrepreneurship and successful private investment; and that a conducive business environment is needed for the latter to thrive and contribute to improve people’s lives.

IFC promotes sustainable private sector development primarily by:

• Financing private sector projects located in the developing world.
• Helping private companies in the developing world mobilize financing in international financial markets.
• Providing advice and technical assistance to businesses and government

Shore Cap International

ShoreCap International Ltd. (SCI) is an international private equity company seeking to invest in small business banks and regulated micro-finance institutions in developing and transitional economies.

ShoreCap was launched by ShoreBank Corporation, America’s first and leading community development and environmental banking corporation. It invests in small business banks, regulated micro-finance institutions and other regulated non-bank financial service companies striving to profitably meet the credit needs of micro entrepreneurs and small businesses in underserved markets.

ShoreCap builds on ShoreBank’s strong history of investing in the renewal of local communities in the U.S. and internationally. ShoreBank’s international work began in 1983 by advising Dr. Muhammad Yunus and for 10 years doing the financial feasibility work for the major institutional donors to the Grameen Bank in Bangladesh.

For twenty of its thirty years, ShoreBank has been working to release the dormant entrepreneurial energy of people in developing countries. ShoreCap is the next progression in that work. ShoreBank is a 9% investor in ShoreCap.

Shareholding Structure:

Creating opportunities and pursuing market niches not traditionally met by conventional banks primarily drive BRAC Bank Ltd, a full service commercial bank with local and international shareholding. BRAC Bank has been striving to provide “best- in –the-class” services to its diverse range of customers spread across the country under an on-line banking platform.

Formation and status of the bank:

BBL is established under the banking companies act, 1991 and incorporated as a public limited company by shares on 20^th May 1999 under the companies act, 1994 in Bangladesh. The primary objective of the bank is to carry on all kinds of banking businesses. The bank has started its operation on 4^th July 2001 by special permission of Supreme Court.

Branches: There are so far 36 branches and over 383 unit offices of BRAC Bank Ltd through out the country.

Major banking operation:

BRAC Bank has a centralized banking structure through online banking system that resembles the ABN AMRO model. BRAC Bank consisted of four divisions namely- Retail Banking, Small and Medium Enterprise Division, Corporate Banking, Treasury Division, Secure Remittance Services (SRS), Cards Division and Marketing & Corporate Affairs. 

Since I completed my internship on retail banking, it would be convenient for me to focus on retail banking of BRAC Bank only.

BRAC Bank Limited’s Vision

“Building a profitable and socially responsible financial institution focused on Markets and Business with growth potential, thereby assisting BRAC and stakeholders build a “just, enlightened, healthy, democratic and poverty free Bangladesh”.

BRAC Bank Limited Mission

In line with its vision, BRAC Bank Limited has developed a mission statement which reads as follows and is self-explanatory:

• Sustained growth in ‘small & Medium Enterprise’ sector
• Continuous low cost deposit growth with controlled growth in Retained 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 fee based 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 deliver of Remittance and Bank’s other products and services
• Manage various lines of business in a 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

Management Aspects

Like any other business organization, all the major decisions at Brac Bank Limited are made by the top management.  The board of directors being at the highest level of organizational structure plays an important role on the policy formulation.  The board of directors is not directly concerned with the day-to-day operation of bank.  They have delegated their authority to its management committee.

Departments of BRAC Bank Limited

If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departmentalization is not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. BRAC Bank Limited has does this work very well. Departments are as follows:

1. Human Resources Department
2. Financial Administration Department
3. Asset Operations Department
4. Credit Division
5. SME Division
6. Internal Control & Compliance Department
7. Marketing & Product Development
8. Impaired Asset Management
9. Remittance Operation Department
10. Treasury Front
11. Treasury Back
12. General Infrastructure Service
13. Information Technology Department
14. Customer Service Delivery
15. Cards Division
16. Call Center
17. Cash Management
18. Secured Remittance department
19. Women Entrepreneur Cell
20. Payment Service

Products/ Service Offerings by BRAC Bank Ltd:

Loan Products:

• Doctor’s Loan
• Salary Loan
• Now Loan
• Auto Loan
• Teachers’ Loan
• Study Loan
• Travel Loan
• Credit card Loan
• Top Up Loan
• High Flyer Loan
• Secured Loan/ OD Loan
• Quick Loan

Deposit Products:

• Fixed Deposit
• Interest First Fixed Deposit
• Abiram Account
• DPS
• Ezee Account
• Saving Account
• Current Account
• Salary Account
• Business Account
• Femina Account
• Probashi Account
• Campus Account

Cards:

ATM/Debit Card:

• ATM Debit Card Features
• ATM Locations
• VISA Debit Card
• Lost Card/Card Replacement
• Help line

Co- Branded Cards:

• Aarong Card
• ALICO Card
• DIA Gold Card

Other Services:

• Locker Service
• Credit Cards.

Some other Services:

Non- Stop Banking:

• SMS Banking
• Direct Internet Banking
• Phone Banking

Project Work of BRAC Bank:

Background

BRAC Bank Limited is a fast growing private sector bank and the bank is already at the top slot in terms of quality service to the customer’s ad the value creation to the shareholders. The bank made satisfactory progress over the years after its starting. Despite difficult circumstances it became able to sustain with some achievements. The bank further expected and consolidated its customer base in both of its core business and retail banking.

BRAC Bank’s firm commitment to excellent working process on Retail Banking Operations as it’s the most important term in respect of Asset of BRAC Bank. If the bank can continue to progress in working process of RBO then it can decrease the problem loan files. Working Process improvement program and related activities are continuously being developed, reviewed and implemented with the objective of providing excellent service to their customers.

This research is focused on “Working Process of Retail Banking Operations of Asset Part of BBL”.

Objective

• To know the work process and monitoring system of RBO.
• To know how to complete the steps of the working process.
• To know the Retail Banking Procedures which is must for the Working process.
• To find out basic appraisal of RBO loan.
• To know the terms and conditions of RBO loans.
• To know the internal strength of RBO related services of BRAC Bank Ltd.
• To know the disbursement and recovery procedures of RBO loans
• To make some policy implications and conclusion to further the development of RBO loan products of BBL.

Methodology

In fact, my aim was to collect as much information as it can be possible for me to make an overview of the bank, its mission and vision, its departments and its functions. Of course I had to collect enough information so that I can make an analysis of RBO loan and the working process.

The study is totally based on the primary data and secondary data. The report is divided into two parts.  The information for the Organization part of the report is collected from secondary sources like books, published reports and official web site of BRAC Bank Limited For general concept development about the bank, short interviews and discussion session were taken as primary source. Moreover, my works towards the department has much relevance with the study.

For gathering concept of SME loan, I have analyzed the RBO Product Program Guideline (PPG). Beside this observation, I have discussed with the employee of RBO and Asset Operations Department. Moreover, during my training period, I have learned all the sector of RBO at BBL.

Retail Banking Operations of BRAC Bank Limited

Retail banking division

The retail banking division in BRAC Bank is very implicit and vast comparing to other banks in the country today. The personnel of BRAC Bank are devoted to give their best effort to satisfy their customers. So BRAC Bank serves its customers with respect and works very hard to instill a strong customer service culture throughout the bank. They always try to introduce more new and attractive products to go close to their customers.

Retail Banking is known as general banking where the individual customers get services time to time from the local branches of the larger commercial banks. In BRAC Bank Retail section has been divided into two parts –

1. Distribution – Serve the acquired customers
2. Sales – Business acquisition

They both are interdependent and work closely with each other. Retail offers different types of competitive banking products to the customers. The retail division of the BRAC Bank also offers some special types of deposits and loan scheme for the customer attention. At present BBL offers various attractive products:

Process Flow of Retail Loan

BRAC Bank’s Retail Division is being operated centrally. Under the Retail Banking Division all the branches, which acts as sales & service center, are reportable to Head of Retail Banking.

Products and service offering

Retail products offered by BRAC Bank Ltd are classifies into three ways. They are:

Features of Retail Products of BRAC Bank Ltd:

Loan Products:

Doctor’s Loan:

BRAC Bank introducing Doctor’s Loan, an exclusive loan facility for the Doctor’s fraternity. Now practicing Doctor’s can avail this loan very easily to meet their professional needs.

Eligibility

• Having M.B.B.S. with 2 years of experience
• A salaried or a self employed Doctor’s
• Aged between 25 to 55 years

Maximum Amount

• Taka 15 Lac

Features

• Loan from BDT 1 Lac to BDT 15 Lac
• One Post Dated Cheque for total limit
• Post Dated Cheque for each Six months installment
• Loan in 48 Hours

Salary Loan:

A salaried individual working in Bangladesh can keep an extra 15 month’s salary to his pocket with the help of BRAC Bank Salary loan, Loan against his salary Because BRAC Bank has been designed the concept of Salary Loan keeping the customers into their mind.

Eligibility

• Employed as a regular salaried staff
• Have minimum age of 25 years, max – 53 years (at the time of application)
• If you earn a gross monthly salary of Tk. 10,000

Maximum Amount

• Anywhere between 1.5 lac to 10 lac (maximum)

Features

• Loan up to 15 times of your Salary
• No collateral of cash securities
• Loan processed just within 24 hours
• Flexible repayment Equal Monthly Installments (EMIs) over a period of 12 months to 60 months
• Person with salary account with BRAC Bank will enjoy 1% less than the prevailing interest rate

Documents required

• Last 3 month’s bank statement
• Last salary slip/Letter of introduction
• Proof of identity
• Proof of residence
• Proof of employment of minimum 2 years at the current organization

Now Loan:

The concept of NOW lone described by BRAC Bank as ‘You choose while we pay’! Life is good making it better when the customer can enjoy BRAC Bank Now Loan. In case a person need to purchase home appliances, furniture’s, computer or other consumer durables for personal use, the bank offer him the most appropriate solution with the Now loan.

Eligibility

• Letter of Introduction
• BRAC Bank account holder aged from 25 to 55
• A salaried employee with minimum monthly income of TK 10, 000
• Employed in your current organization for two years
• 3 months Bank statement (latest)
• Pay slip required if salary paid in cash

For Business person

• TIN
• Business proof – 2 years
• 3 months personal and company Bank statement
• Permanent address must be where you operate

Maximum Amount

• 15 times of gross monthly income

Features

• No Collateral / Cash Security
• 72 Hour Processing
• Small Monthly Installments
• Family members guarantee

Auto Loan

BRAC Bank Car Loan can stop a customer dreaming and Start driving. Whether the customer wants to purchase a brand new car or a reconditioned one, the bank has the most customer-friendly car loan scheme available

Eligibility

• Both salaried executives and business persons
• Age between 21 at the time of application to 60 at the time of maturity
• Minimum monthly income BDT 25,000
• Length of service/Age of business: Minimum 2 years

Maximum Amount

• 100% of the vehicle price
• Maximum BDT 2 million

Features

• 100% Car value financing
• Loan status in 72 hours
• Both unregistered Brand New/Reconditioned car finance, Loan term: 12-60 months.

Fig : These figures are indicative and can change over time

Teachers’ Loan:

‘Honest profession, Honest Service’. BRAC Bank Teachers’ Loan provides a wedding or a dream holiday, financing a business or surviving an emergency, Teachers Loan can be applicable just within three days of application!

Eligibility

• A teacher of any reputed school or university
• Have a minimum length of service record of at least two years
• Have a minimum net salary of Tk. 5000
• Have a minimum age of 23 years

Maximum Amount

• 10 times of your gross monthly salary
• The loan amount stretches from Tk. 50,000 to Tk. 10,00,000 (maximum)

Features

• Fastest Processing Time
• Small Monthly Installments
• Minimum Loan Documentation

Study Loan

‘Your gateway to the world’ is the motto of BRAC Bank. The Study Loan gives the child deserves the best education that every person have planned it ahead. BRAC bank has the perfect solution for their child’s future without worried about financing.

Eligibility

• Parent/ financial guarantor of the student pursuing higher education locally and abroad
• Earning TK 25,000 per month
• Aged between 30 to 60 years

Business Person:

• TIN
• Company and personal Bank statement (latest) 6 months

Maximum Amount

• 15 times of your gross monthly income

Features

• Small Monthly Installments
• Repayment scheme up to maximum of 5 years
• Multipurpose facility to meet living expenses, airfare, personal expenses beside tuition as well
• For both salaried and self employed

Travel Loan

‘It’s time to fly’, BRAC Bank Travel Loan opens the door for planning to take a trip abroad. It gives the simplest way of financing, which have fast and easy loan processing.  The travel loan simply adds excitement to the travel plan.

Eligibility

• An individual with minimum monthly income of TK 15,000
• A salaried or a self employed person
• Aged between 25 to 53 years

Maximum Amount

• 8 to 10 times of gross salary

Features

• Small Monthly Installments
• 50% off on Foreign Currency Endorsement Fees
• For Salaried and self-Employed individuals

What do you need to apply?

• For salaried employees, tourist visa of the traveling country, last 3 month’s bank statement, last salary slip/ letter of introduction showing salary, proof of ID, proof of residence, business card, photocopy of passport, quotation from travel agency regarding airfare, proof of employment of minimum 2 years, applicant’s & employer’s name in the address field family member guarantee.
• For a self- employed person, tourist visa of the traveling country, last six months bank statement, copy of trade license, TIN Certificate, proof of residence, spouse guarantee, business card, photocopy of passport, quotation from travel agency regarding airfare.

Credit Card Loan

Through the BRAC Bank credit card is necessary to get a loan from BRAC Bank. Loan can be used for any reason from buying consumer goods, automobile to vacation expenses.

Eligibility

• A one-year-old local credit card with any institution
• A minimum of 12 months of satisfactory credit card relationship with any credit card issuer in Bangladesh

Additional Requirements:

Salaried:

• Letter of introduction pay slip
• Latest 3 months Bank statement

Business Person

• TIN
• Proof of 5 years in business
• Permanent address in the area where you operate
• Company and personal Bank statement 6 months (latest)

Maximum Amount

• 5 times of credit card limit with a maximum of TK 1,000,000

Features

• Any Purpose Loan
• Status of the facility in just 72 hours
• Flexible repayable plan in equal monthly installment

What do you need to apply?

• Copy of credit card
• Last 3 month’s credit card statements
• Proof of 1 year of credit card history
• Personal guarantee of immediate family member

Top Up Loan

BRAC Bank Top Up Loan is easy loan for good borrower. This unsecured loan is designed to meet various personal needs without mentioning the purpose at all. By applying according to the requirements Top Up loan can be available to the customer.

Eligibility

• An existing retail borrower of a reputed financial institution with good repayment history
• A salaried or a self employed individual
• Aged between 30 to 55 years

Maximum Amount

• Taka 10 Lac

Features

• No tiring paper work
• Facility status within 72 hours of application

Highflier Loan

BRAC Bank’s High-Flyer Loan is for airline; GSA & Travel Agency a professional is to makes the customer long cherished desires an absolute reality. Enjoy life to the fullest and take benefit of the varied opportunities it offers the High-Flyer Loan.

Eligibility

• Maximum 20 times of your net monthly salary.
• Minimum loan size is BDT 50,000; loan is available up to BDT 500,000.

Maximum Amount

• 15 times of your gross monthly income

Features

• No Security
• Fastest Processing Time
• Loan up to 5 years
• Attractive interest rate

Secured Loan/ OD

A special scheme that allows customer to avail the cash at a nominal interest rate is secured Loan. The security of the customer is kept untouched in the Bank’s custody as the value grows.

Eligibility

• All BRAC Bank account holders aged from 21 to 65
• People from all income groups – salaried employees and self-employed business people with security in their possession

Maximum Amount

• Maximum amount can go up to Tk 5crores. We even allow loans up to even 100% of the value of your securities (conditions apply)

Features

• Allowed to choose between the quarterly repayment option and the monthly installment option
• Can avail the facilities in single or in joint names
• Interest will be calculated using reducing balance method

Deposit products:

Fixed Deposit:

Opening Requirements- A Current Account or Savings Account

General Features-

• A term deposit with a guaranteed monthly return on investment
•  Competitive interest rates
• Early encashment flexibility
• Secured Loan and/or Secured Overdraft eligibility

Related Conditions and Charges

• Early Encashment Charge: no penalty charge; interest will be paid at prevailing Savings Account rate if FD is maintained for at least 3 months
• Secured Loan and/or Secured Overdraft eligibility: up to 95% of Abiram value
• Secured Loan and / or Secured Overdraft eligibility: up to 80% of IFFD value

Interest Features

Proposed rate of interest on Deposits: With effect from 20.10.2006:

Interest First Fixed Deposit (IFFD):

BRAC Bank Interest First Fixed Deposit lets the customer draw the interest instantly at the time of deposit. The customers don’t have to wait till maturity to receive interest on Fixed Deposit. A deposit scheme where the client receives interest in advance.

Features

• Attractive rate of return
• Loan facility against the IFFD

Abiram Account:

BRAC Bank ‘Abiram’ Account is a special type of Fixed Deposit scheme, which offers the flexibility & comfort of having a guaranteed monthly return on the investment. With BRAC Bank ‘Abiram’ Account, the customer can ensure a safe & steady return on the investment. Cause hard earned money of the customer is paying-off immediately;

Features

• Monthly interest of the deposit
• Attractive rate of return
• 95% loan against the deposit.

 DPS (Deposit Premium Scheme):

BRAC Bank’s Deposit Premium Scheme is a savings plan that adds value to the hard earned money.

Features

• Monthly installments can be as low as Tk.500 or any multiples of it
• Choose any day as the installment date
• Receive a Savings a/c with a personalized cheque book
• On-line banking facilities
• The customers don’t need to stand in a long queue to deposit DPS Installments. He can always deposit more than one installment in the savings account and the bank will automatically transfer the installment to his DPS account on due dates

Ezee Account:

‘Banking That Sets You Free’ BRAC Bank offers Ezee Account a non-cheque interest bearing account for small savers who are in frequent need of transaction. It doesn’t need to write a cheque or stand in a long queue to draw money from BRAC Bank. Customer can get an ATM card or a VISA Debit card to operate their account round the clock.

Requirements for opening an Ezee Account:

• 2 passport size photographs of account holder
• 1 passport size photograph of nominee
• Photo copy of photo ID
• Proof of address
• Initial deposit of minimum BDT 10,000

Features

• Interest rate is 4%
• Deposit in any Branch

• 24 hour access to ATMs and POS
• Access money from any place where the VISA logo can be shown
• Deposit in booth
• Interest on daily balance
• No minimum balance
• No ledger fees

Savings Account

A regular savings account offering interests on deposit amount.

Requirements for opening an Ezee Account:

• Primary Account opening balance – 15,000 BDT
• No minimum balance required
• 2 copies of your recent photograph
• Valid photocopy of you ID Card/Driving License
• 1 copy of Nominee’s Photograph

Features

• 8 transactions
• Cash withdrawal and deposit of 5 lacs and above need clarification
• No forfeiture rules or hidden costs
• No requirement for notices to be given before making a withdrawal
• Use our network of VISAs for easy cash withdrawal
• Get mini balance statements from our ATM booths whenever you need Interest rate of 5.5% on average monthly balance

 Current Account

BRAC Bank’s Current Account is a normal checking account, gives the option to deposit and withdraw money for day-to-day needs.

Requirements for opening a current Account:

• Primary Account opening balance – 15,000 BDT
• No minimum balance required
• 2 copies of your recent photograph
• Valid photocopy of you ID Card/Driving License
• 1 copy of Nominee’s Photograph

Features

• ATM card for easy cash withdrawal
• Withdraw money from any ATM booths
• Deposit cheque at any branches and get the fund transferred to the account immediately
• Use online banking facility for free Easy access to other facilities
• No interest rate.

 Salary Account

BRAC Bank Salary Account is a payroll account for Employers and Employees. As an organization, it can opt for Salary Account to enable easy disbursements of salary & enjoy numerous other benefits.

Eligibility

The organization needs to have a minimum of 10 employees and a payout of Tk. 1lac per month and an average salary per employee of Tk.10,000 per month.

Zero Balance

There is no minimum balance required to open Salary Account. Employees can open Salary Account with zero balance.

VISA/ATM Debit Card:

Employees will be provided with VISA Debit Cards to allow them to access to 24 hour banking. These VISA Debit Cards can also be used for retail purchases not only from Brac booths but also any other bank’s booths and at various stores all around the country where the VISA logo is shown.

Saving Interest

The account also accrues interest on deposits. No minimum balance is required to earn interest on the account. All an employer would require to do is to send BRAC Bank an advice (in the form of a cheque/debit instruction etc) for the total salary amount along with the salary details of the designated employees in a soft and hard copy format and the bank will credit the respective employees’ accounts as per your statement of advice.

BIZNESS Account

Bizness Account is an interest bearing account only for business Enterprise for SME and Retail Banking. This product has been set in a way to encourage small & medium entrepreneur to enter into the wide range of modern banking facilities of BRAC Bank Limited.

Eligibility:

• Small and medium sized business entrepreneur of a sole proprietorship business
• Entrepreneurs aged between 18 to 60 years
• Opening balance – BDT-10, 000.00

Features

• 4% interest on daily balance
• Smart Business Card
• 24 hour Access to ATMs/ POS
• Tk-50, 000 withdrawn facility (per day) from ATM & Tk-100, 000 from POS
• No Minimum Balance, No Ledger Fees, No hidden cost
• No bar for using POS
• Phone-Banking, Online Banking, SMS Banking, Internet Banking facility
• Interest paid to account twice a year

Cards:

There are two types of debit cards introduced by BRAC Bank Ltd. They are:

• ATM/VISA/Debit Card
• Co-Branded Card

ATM/VISA/Debit Card

ATM/VISA/Debit Card is a plastic card to be used to mainly withdraw cash from automated teller machine (ATM). By opening an account with BRAC Bank Limited, customer can have ATM/VISA card.

Person who are not eligible for ATM/VISA card:                                    

• Joint accounts operated by joint signature
• Accounts of minors
• Accounts under attachment order
• Accounts under disputes
• Dormant accounts

ATM/VISA/Debit Card features:

• Draw money up to BDT 20,000 per day
• Check balance statements of your ATM and POS transactions
• By new launched VISA card you can draw money from any booth or store
• Get a Mini Statement
• Change PIN number
• Use it in BRAC Bank POS outlets to pay
• 24 hour hotline available to resolve queries and problem

Working Process of Retail Banking Operations (Asset)

Loan Administration Department (LAD) born in 2nd May of 2003 through centralization. Previously it has supported Retail, Corporate, and SME. LAD was renamed in 1st of March 2006 as Asset Operations Department (AOD) currently AOD supports- SME, Retail, Corporate, and Trade Finance  Department.

Working Process of Retail Banking Operation of loan section that is the asset part is huge. It starts from the receiving loan files and ended with the loan closing of customers. And for the working process of Asset part it takes a very long step. And performing the steps the employees have to be very conscious. And they need to take training on it. As there is so many software based work, so the employees need to work on it carefully. The steps of the working process that I have done in my report are shown as diagrams and also it has the written description. And I have also analyzed the working process and recommend some points which BRAC Bank can follow. The steps of the working process of RBO (asset part) are as follows:

a) Documents (Docs) Received

b) Obtaining CIB Report

c) Activities of Asset Operation (Retail Division)

d) Activities of the Disbursement Team

e) Lien Confirmation

f) Post Disbursement (Data Entry)

g) Manual activity (Post Disbursement)

h) File Management

i) Loan Closing

j) FINACLE Entries for loan closing

k) Manual activity (Post Closing)

l) Loan Rescheduling

m) FINACLE Entries for loan rescheduling

n) Manual Activity (Post Rescheduling)