brac bank ltd 2

1.1 Introduction

Internship is a partial requirement of graduation. It opens a great opportunity for any student to

get excellent and effective idea on activities of real job field. It is also a challenging experience

to prepare the final report, which increases intellectual abilities as an efficient graduate. As

Banking organizations have emerged as the most important player of our economy and they also

offer an enthusiastic environment for carrier advancement, it was my premier objective since the

very beginning of BBA program to accomplish internship in this type of financial institution.

BRAC Bank Ltd. is one of the most new and fastest growing banks in Bangladesh. Since the

very beginning their objective was to become market leader in this trade and set new standards of

customer services. They have introduced some innovative concepts and ways with the help of

information technology in the banking system. So, during the internship period in this bank, gave

me an excellent opportunity to get involve to the modern banking approaches.

I have made my choice of major to match the requirements needed to get opportunities and build

carrier in banking. As a first step, I have decided to complete the internship in a bank, which has

brought some new ways, and ideas in this field.

This Internship Report is prepared as a requirement for the completion of the BBA Program of

the International Islamic University Chittagong. The primary goal of the internship prospectus is

to provide on the job coverage to the student and an opportunity for translation of theoretical

conceptions in real life situation. Students are placed in enterprises, organizations, research

institutions as well as development projects. The program covers an overall period of

approximate 3 months of organizational attachment, with report finalization work.

The Purpose of the study is to make an analytical study of overall consumer banking view and

business performance on the basis of banking products, which have massive contribution in the

income of the Bank.

Prepared by: Nafisa Ahmed, Matric no: B-061213, BBA, IIUC.

Chapter-1

1.2 Objective of the study

Though the main objective of internship is to prepare ourselves in such a manner as though we

can equip ourselves with the practical field as well as we will be able to know the different

aspects of the banking sector and to evaluate how bank is performing in different sectors.

To get the overall consumer banking view of the bank I had to find out the activities of Retail

Banking, Retail Lending (Credit), Card and Services of this branch. So the objectives I sought

out are something like this.

To identify different products and features offered by BBL in Retail Banking, Retail

Lending (Credit), Card and Services.

To evaluate the financial performance of BBL.

To recommend some improvement measures to resolve the problem.


1.3 Methodology

The report was basically executed by observing the daily activities of the bank staffs and

working in progress. Finally I have conducted an observation method for finding the Bank’s

products of BBL. I have also conducted a primary survey for collecting the necessary data from

the Bank staffs.

There are three types of research reports: descriptive, exploratory and causal research. This

report is a descriptive report as it is giving the overall view of the consumer banking. This

research is prepared both with primary data and secondary data. Qualitative data and quantitative

data have also been applied in this research work.

Data Collection:

Both primary data and secondary data were collected to organize this research work. But the

report is basically emphasized on secondary data.

Primary Data were collected from the informal discussion with the officials and staffs of

the organization. The financial figures were collected from the bank’s database as well

as from the periodical financial statements of the Bank.

Secondary data was collected from different sources e.g. annual report of the

organization, web sites, reports, prospectus, journals, newspaper etc. In addition to that,

from Periodic Publication of the Bank, Prior Research Reports, Bangladesh Bank

Reports and other internal sources data has been collected.

The report is based on information and it is also a descriptive research. After collecting all the

relevant data, analysis has been done with the help of arithmetic and statistical operations.

Software such as Microsoft Excel was used to calculate the data and present the results in graph.

Based on all the possible results that have been found from the analysis I have tried to identify

the reason behind the problem and draw the solution of the problem by formulating the

conclusion and preparing the report.


1.4 Scope of the study

This report deals with the organizational structure, services, and other different aspects of BRAC

Bank Ltd and determination of the financial statement of BRAC Bank Ltd. So the outcomes of

the report are not a concrete illustration of the state of financial statement of BRAC Bank Ltd.

The study will provide the scopes of knowing the following:

a) The total concept Consumer Banking (Retail Banking, Retail lending, Card services and

other services).

b) Recent performance level of the BRAC Bank LTD in the country.

1.5 Limitation of the study

Although I have got co-operation from employee of BRAC bank & they also gave me much time

to make me this report properly. The study of a short course of time is not free from limitations.

Actually, this study doesn't show the total Banking service renders by the various departments. It

only shows the status of a particular branch. Because the project has been done in a specific

branch, the major limitations that the study faced during the study period are spot lighted below:

The major problem I have faced is lack of understanding. There were a lot terminologies

as well as terms and conditions, of which I do not have any prior knowledge.

Bank is a very busy financial institution. There are rushes of people for the whole day

and the officers have to transact with the customer constantly. So, it is very much tough

for me to allocate time for collecting data and taking interview of the bank officials.

As most of the data is collected from secondary sources, there was very little opportunity

for me to analysis data individually as well as the study is suffered from inadequate data.

That’s why I have to rely on the provided data.

Time constraint is one of the problems, for which it has been difficult for me to gather

enough knowledge about the banking sector and realizing all the banking rules and

regulation.


Chapter-2

2.1 Background of the BRAC BANK LIMITED

BRAC Bank Limited, one of the latest generation of commercial banks started its journey on

July 04, 2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of

the world’s largest non-governmental development organizations founded by Sir Mr. Fazle

Hasan Abed in 1972. It 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.

Participation in the Bangladesh economy through the provision of high quality banking services

BRAC Bank doing this by increasing access to economic opportunities for all individuals and

business in Bangladesh with a special focus on currently under-served enterprises and

households across the rural – urban spectrum. BRAC Bank believes that the pursuit of profit and

developmental goals is mutually reinforcing. BRAC Bank intends to set standards as the Market

leader in Bangladesh by providing efficient, friendly and modern fully automated online service

on a profitable basis. It produces earnings and pay out dividends that supports the activities of

BRAC, the Bank’s major shareholder. BRAC Bank goal is to provide mass financing to enable

mass production and mass consumption, and thereby contribute to the development of

Bangladesh.

Aiming at offering commercial banking service to the customers’ door around the country,

BRAC Bank limited established 77 branches up-to this year. This organization achieved

customers’ confidence immediately after its establishment.

Within this short time the bank has been successful in positioning itself as progressive and

dynamic financial institution in the country. The is now widely acclaimed by the business

community, from small entrepreneur to big merchant and conglomerates, including top rated

corporate and foreign investors, for modern and innovative ideas and financial solution. BRAC

Bank has fast growing small business lending, remittance, savings mobilization and consumer

lending businesses. 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.The authorized capital of BBL is Tk. 1000 million and paid up capital of the same

bank is Tk. 1200 million.


BRAC BANK LTD ...At a glance

Name of the bank BRAC Bank Ltd

Status Public company Ltd.

Incorporated at 20 May 1999

Inauguration of the first branch 4th July 2001

Inauguration of the CDA Avenue Branch 24th December 2007

Head Office 1, Gulshan Avenue Gulshan, Dhaka-1212 Bangladesh

Chairman Mr. Muhammed A Rumee Ali

Managing Director Mr. A. E. A. Mohaimen

Manager of CDA Avenue Branch Syed Arshaadul Huq

No. of employees of CDA Avenue Branch

20 (permanent)

Asset growth by 103 %

Liabilities growth by 65 %

Find Under Management growth by 80 %

Number of Deposit Account 200000

Number of Advance Account 50000

Number of Branches 57

ATM Booth 177


2.2 Corporate mission

BRAC Bank Limited wants to be the absolute market leader in the number of loans given to

small and medium sized enterprises, service holders, teachers, students, immigrants and people

belong to all income and professional groups throughout Bangladesh. It tries to be a world-class

organization in terms of service quality and establishing relationships that help its customers to

develop and grow successfully. It wants to become the Bank of choice both for its employees

and its customers, the model bank in this part of the world. The missions that BBL follows are-

» 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 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 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.

2.3 Corporate vision

The vision of BBL is- 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".

2.4 Goals

BRAC Bank will be the absolute market leader in the number of loans given to small and

medium sized enterprises throughout Bangladesh. It will be a world class organization in terms

of service quality and establishing relationships that help its customers to develop and grow

successfully. It will be the Bank of choice both for its employees and its customers, the model

bank in this part of the world.


2.5 Objectives

The objective of BRAC Bank Limited is specific and targeted to its vision and to position itself

in the mindset of the people as a bank with difference. The objectives of BRAC Bank Limited

are as follows:

Building a strong customer focus and relationship based on integrity, superior service.

To creating an honest, open and enabling environment.

To value and respect people and make decisions based on merit.

To strive for profit & sound growth.

To value the fact that they are a member of the BRAC family – committed to the creation

of employment opportunities across Bangladesh.

To work as a team to serve the best interest of our owners.

To relentless in pursuit of business innovation and improvement.

To base recognition and reward on performance.

To responsible, trustworthy and law-abiding in all facts that a Bank do.

To mobilize the savings and channeling it out as loan or advance as the company

approve.

To establish, maintain, carry on, transact and undertake all kinds of investment and

financial business including underwriting, managing and distributing the issue of stocks,

debentures, and other securities.

To finance the international trade both in import and export.

To develop the standard of living of the limited income group by providing Consumer

Credit.

To finance the industry, trade and commerce in both the conventional way and by

offering customer friendly credit service.

To encourage the new entrepreneurs for investment and thus to develop the country’s

industry sector and contribute to the economic development.

2.6 Company Slogan:

BRAC Bank Limited’s company slogan is “Aastha Obichol”. It promises of unshakeable trust,

and being the “dependable friend in banking” will hold true for years to come.


2.7 Shareholding Structure

2.8 Management of BRAC Bank Limited

Boards of directors are the sole authority to take decision about the affairs of the business. Now

there are 5 directors in the management of the bank. All the directors have good academic

background and have huge experience in business. Mr. A. Rumee Ali is the chairman of the

bank. The board of directors holds meetings on a regular basis. Now the Managing Director of

the bank is Mr. A. E. A. Mohaimen. The bank has made a reasonable progress due to its

visionary management people and its appropriate policy and implementation.

2.9 Special Features of BRAC Bank Limited:

BRAC Bank Limited possesses the following special features:

Target Group Strategy: BRAC Bank is attached with special emphasis to the target

group strategy of development.

Institution Building: The Bank emphasizes on creation of self-managed institutions of

its clients. These institutions will be based at the clients’ localities.


Name of Shareholder Total Shares % of Total ShareBRAC 76,55,265 37.18Mr. Fazle Hasan Abed 204 0.001Mr. Syed Humayun Kabir 204 0.001Mr. A.S Mahmud 171 0.001Mr. Faruq A. Choudhury 171 0.001Dr. Saleh Uddin Ahmed 204 0.001Mr. Md. Aminul Alam 204 0.001Ms. Tamara Hasan Abed 171 0.001Mr. Shib Narayan Kairy 156 0.001Shorecap International Ltd. 14,38,949 6.99International Finance Corporation (IFC) 12,00,547 5.83General Shareholders 102,95,754 50.00Total 205,92,000 100.00

Training: A special feature of BRAC Bank is the provision of training for its clients. The

aim of the training is to increase the capability of the borrower to utilized loans

effectively.

Technology: The Bank encourages the use of new and improved technologies in order to

increase employment opportunities and productivity of the poor. The credit activities will

be structured in such a way that the use of appropriate technology is ensured and the poor

can benefit from improved technology.

Collateral Free Lending: BRAC Bank provides credit without security. The poor who

do not have resources to offer as collateral have, so far, been denied access to formal

credit. However, BRAC Bank will not normally seek collateral for providing credit and

will use peer pressure to ensure timely repayment, which has already proved effective.

Service at the Doorstep: BRAC Bank provides service at the doorsteps of the customers.

Unlike the traditional banking system, BRAC Bank worker go to the villages regularly to

collect savings and loan repayments.

Women’s Development: BRAC Bank is attached with special attention to women in

development.

2.10 Business Areas of BRAC Bank Limited:

BRAC Bank is a fully operational Commercial Bank. This Bank is focused to introduce fully

integrated online banking service to provide all kinds of banking facilities from any of its

conveniently located branches. BRAC Bank is mainly performing in six major business areas

with high reputation. These areas are-

Small & Medium Enterprise (SME)

Corporate Banking

Retail Banking

Treasury

Remittance Services

Premium Banking

All the units are being operated in a centralized manner to minimize costs and risks.


As I have accomplished my internship on retail banking, this report is basically focused on the

retail operation and products of BBL. But, for the convenience of analysis, I have considered the

whole organization.

2.11 Organizational structure of the BRAC Bank Limited


Board of Directors

Chairman

Managing Director

Deputy Managing Director

Head of Retail

Head of Distribution

Branch Manager

Customer Service Manager

Branch Sales and Service Manager

Branch Sales and Service Officer

Overview on Consumer Banking Operation

BRAC Bank Ltd. is a commercial bank, which has to operate under the rules and regulations of

Bangladesh Bank. It has highly skilled and qualified professional staffs, which are capable of

handling all the banking needs of customers and is always available to provide personalized one-

stop services. Consumer banking section plays a very vital role in banking activities. The

Consumer banking Division comprises of the domestic branch network with the specialized

customer credit, real estate finance. Consumer banking deals with the banking to the individuals.

BRAC Bank’s Consumer banking strategy is aimed at keeping as closely in tune with their

customer’s needs as possible and further improving the quality of advisory services. As a result,

BRAC bank offers different product ranges to different target groups.

Consumer banking includes the following operations:

Retail Banking.

Various deposit schemes & services.

Retail Lending (Credit Products).

Various lending schemes & services.

Card Services.

Credit cards, Debit card & others.

Other Services provided by the Bank staffs to the general consumers.

Pay order.

Locker service.

ATM’s.

SMS, Phone & Internet Banking.


Chapter-2

Retail Banking (Deposit schemes and services)

Section 1: An overview of Deposit Accounts

One of the primary function of a banker as contained in the Banking Corporation act 1991 is to

accept money from the public. Taking deposits from the customers and providing loan facility to

borrower is one of the generic functions of consumer banking.

The deposits collected by bank may be broadly classified into:-

Demand Deposit:

Demands on demand deposit accounts may be withdrawn on demand and thus no prior notice is

needed. Deposit in

Currents Accounts

Short term Deposit Accounts fall under this category.

Time Deposits:

Deposits maintained in the Time Deposits or Term Deposit accounts are withdrawn on the expiry

of a fixed period of time only.

Savings Accounts

Fixed Deposit Accounts

Current Deposit Accounts:

A Current Deposit Account may be operated upon any number of times during the business

hours of a working day.

Current Deposit Account suits the requirement of Businessman, Joint Stock Companies,

Institutions and Public Authorities etc. as they require numerous transactions on every working

day. The banks do not pay interest on current deposits.

Usually the loans and advances are disbursed through Current Accounts.


Savings Accounts

The savings accounts are usually opened and operated by individuals to meet their future

contingencies and also to enjoy the convenience of easy accessibility of money kept in savings

accounts. Savings accounts are designed for the investment of the personal savings.

One of the objectives of such accounts is promotion the habit of thrift among people. The banks

impose certain restriction on withdrawals from the savings accounts. The bankers usually on a

special request may permit withdrawals exceeding these limits but then interest for that particular

month in which withdrawals exceed these limits, is not paid. Interest on savings accounts is

allowed on minimum balance.

Interest is credited every six months (generally in June and December).

Fixed Deposit Accounts

Fixed Deposit Accounts are also called Time Liabilities of a banker. They are so called because

the money is payable on the expiry of a fixed period of time only. The guest suiting his

convenience chooses this time period. The rate of interest for different period is different but in

case is usually higher than the arte offered on the Savings accounts. The reason is very obvious.

The bank when knows the exact date of repayment, he can invest the money in long term

projects bringing him a higher rate of return.


Section 2: Deposit Products (Savings Accounts)

Savings Accounts

A Savings Account is an account that gives interest on the deposits kept in it.

This Account is for individuals and non-trading entities.

One can put his money in this account and earn interest on the idle funds also use the

fund when he needs it.

Savings Account is suitable for:

Individuals, clubs, associates, societies, trusts and others of similar stature.

Particularly suited for individuals who have regular and fixed sources of income and

fixed expenses. For example: housewives, salaried professionals, businessman and

other self-employed professionals.

Savings Accounts of BRAC Bank Ltd:

Triple Benefit Savings Account

Savings Classic Account

Aporajita Account.


Triple Benefit Savings account

Triple Benefits Savings Account offers a high interest rate of up to 8% p.a. Interest is credited to

the account every month on average monthly balance. The minimum account opening balance

requirement is BDT 50,000.

Required Documents to open a Triple Benefits Savings Account:

A completed personal account opening form. Completed personal account opening form means-

Name, occupational details and nationality of the applicant mentioned.

Applicant(s) Date-of-birth, father’s and mother’s name mentioned.

Applicant(s) full mailing and permanent address mentioned.

Name, photograph, Date-of-birth, relationship, address of nominee –all information are

given.

If the nominee is minor, then his/her thumb impression and one legal guardian is must.

The nominee must sign at the back of his/her photo and the applicant must sign

underneath, attesting that sign.

Signature of the applicant in the appropriate box(es).

The applicant will have to use the sign in all account related activities.

This sign must also be the same as the one on the back of the nominees photograph.

Name, account No., and sign of the introducer.

Introducer must be a existing account holder of BBL with at least 6 month’s

satisfactory relationship.

The monthly income and the source of income of the applicant must be mentioned.

The transaction profile must be filled in.

The initial deposit should be filled up. If the initial deposit is in cheque, then the drawee

bank name, cheque number must be mentioned.

One bill copy of the communication address should be given, if it is not given then a

verification of the address must be filled up and verified by the introducer.


If the applicant wants to have other facilities (such as: sms banking, internet banking,

fixed deposit, locker facility) then proper boxes should be filled in.

A KYC form should be properly fiiled up by the account opening officer and attach

with the form.

Facilities in the Triple Benefits Savings Account:

Account opening balance: BDT 50,000 only.

Interest rate of up to 8% p.a., credited to the account every month.

No Debit card Fee.

No upfront Fee.

No yearly/ half yearly Account maintenance Charges.

First cheque book of 12 pages for free.

Interest rate in Triple Benefits Savings Account:

Interest rate is applicable to the account twice a year on June and December. The interest rate in

the Triple Benefits Savings Account is as follows:

Monthly average balance Rate

Below Tk. 50,000 0%

From Tk. 50,000 to less than Tk. 5 lac 4%

From Tk. 5 lac to less than Tk. 25 lac 6%

Tk. 25 lac & above 8%

Tax rate on the Interest & on the Triple Benefits Savings Account:

There is a 10% tax on the interest earned in the savings account. This tax is deducted at source,

meaning the bank deducts the tax before giving it to the customer.

There is also Government Excise Duty on the deposit/ balance level of the account. The duty is

calculated on the balance between January and December.

Triple Benefits Savings Account statements:

Customer gets half yearly statements (every six months) in the TBS account. If the customer

wishes any other frequency then they will have to mention it in the account opening form. They

can also change the frequency of the statements as well. Statement is usually mailed to the


customer’s mailing address. Customers can also collect the statements from any branch of BBL

from anywhere in the country.

Triple Benefits Savings Account cheque book and Visa debit card:

Customers will get cheque book and Visa debit card for the TBS account. TBS accounts in the

name of the person, individuals or joint, will also get Visa debit card.

Joint account holders will get Visa debit card for each person/ for any one person if the mode of

operation is operate singly or either or survivor respectively.

Withdraw system of ATM:

There is a cap of maximum TK. 20000 from the ATM booth and TK. 100000 from the POS

machine from any branch that can be withdrawn from one account in a single day. If anyone

wants to extent his limit he can do this by calling to the phone banking.

Triple Benefits Savings Account Fund Transfer:

There are no restrictions in fund transferring for Triple Benefits Savings Account. In fact,

Customers can deposit cash and cheques at any branch in Bangladesh and have their

account credited.

Customers can also withdraw cash from any branch or ATM booth machine in

Bangladesh.

Funds can be transferred between two accounts of the same branch or different branches.

Customers get cheque clearing facility for local cheque and collection facility for

outstation cheques.

Procedures to operating account in absence of account holder:

Customers can let another person to operate the account in his/ her absence by:

Delegation of authority:

Customers can delegate the authority to operate their account signing a form for “Delegation of

authority”. The a/c holder must also attest the photograph of the procurator. The person to whom

the authority is delegated is called Procurator. The form designed in such a way that the

customer can choose which rights they will delegate and which they will not. Customers can

cross out the powers they do not wish to delegate.


Power of Attorney:

By power of attorney we mean general Power Of Attorney here. Delegation of Authority covered

special Powers of Attorney. Branch personnel must be absolutely sure of the Attorney’s identity

and the document’s, which gives the power, is completely valid. If they feel that the Power was

gained through duress they can refer it to the BSSM/CSM.

Finally, the power of attorney must include clauses that relate to banking. If the documents don’t

say anything about banking transactions, then the Bank is not obliged to recognize the Power of

Attorney.

Signature:

Signature to operate the account can be change for both organizational and individual customers.

For individuals:

Customers can fill in an account services form, where they can change their Signature. The

customer will have to give both the existing signature and the new signature in that form.

For organizations:

Signatories for the organizations account can change and they do change. In that case a new

Board Resolution or extract of the Board Resolution is required. The resolution will state that the

new signatories, whom they are replacing, are and if any special instructions are applicable for

their signing authority.

Closing of Triple Benefits Savings Account:

Customers can close a savings account by filling in an account closing form. Customers

can withdraw all the amount end leave the funds to meet the account closing charges.

To close the account the customer must return the cheque book and Visa debit Card. The

employee will destroy the card and the cheque book in front of the customer.

Customer can also transfer the money left to another BBL account by fund transfer

option.


Savings Classic Account

Savings Classic Account offers interest rate of 5.5% p.a. The minimum account opening balance

Requirement is BDT 15,000. Any balance greater than zero will be eligible for interest. The

account maintenance fee is BDT 300 + VAT for every half year. Annual Debit Card Fee is BDT

600 + VAT. The account offers free cheque book facility provided the minimum balance is

maintained.

Required Documents to open a Savings Classic Account is same as the individuals

Triple Benefits Savings Account.

Facilities in the Savings Classic Account:


Interest rate of up to 5.5% p.a., credited to the account every month.

Half Yearly Account Maintenance Fee Tk. 300 Half-Yearly.

Chequebook Issue Fee Free.

Second Chequebook Issue Fee Tk. 100 for 12 pages, if balance is below Tk. 15,000.

Free if last month’s average balance is Tk. 15,000 & above.

Visa Debit Card fee (annual) Tk. 600 (yearly).

Savings Classic Account cheque book and Visa debit card:

Customers will get cheque book and Visa debit card for the Savings Classic Account. Savings

Classic Account in the name of the person, individuals or joint, will also get Visa debit card.



Savings Classic Account Fund Transfer is same as the individuals Triple Benefits

Savings Account.

Procedures to operating account in absence of account holder is same as the

individuals Triple Benefits Savings Account.


Closing of Savings Classic Account is same as the individuals Triple Benefits Savings

Account.

Aporajita Savings Account

Aporajita Account is a savings account for female customers, which offers interest rate of 6.5%

p.a., credited to the account on a monthly basis. The minimum account opening balance

requirement is BDT 5,000. Any balance of greater than zero will be eligible for interest. There is

no Annual Account Maintenance Fee. Annual Debit Card Fee is BDT 600 + VAT. This is a non-

cheque-book account.

Required Documents to open a Aporajita Savings Account is same as the individuals


Facilities in the Aporajita Savings Account:


Interest rate of up to 6.5% p.a., credited to the account every month.

No yearly/ half yearly Account maintenance Charges

No Chequebook.


Aporajita ATM card fee (annual)-discontinued Tk. 590 (yearly).

Tax rate on the Interest & on the Aporajita Savings Account is same as the individuals


Aporajita Savings Account statements is same as the individuals Triple Benefits

Savings Account.

Aporajita Savings Account cheque book and Visa debit card:

Customers will not get any cheque book for the Aporajita Savings Account. Aporajita Savings

Account in the name of the person, individuals or joint, will get Visa debit card only. Joint

account holders will get Visa debit card for each person/ for any one person if the mode of



Section 3: Deposit Products (Current Accounts)

Current Account:

Current account is an account on which cheques are drawn and to which credits are paid.

It is also a non interest bearing a/c, it is also called Checking Account.

This is appropriate for both organization and person, who expects very frequent

transactions with funds coming in and going out daily.

Current Account is suitable for:

Individuals:

Resident Bangladeshis, Non-Resident Bangladeshis, Foreign National Resident in

Bangladesh.

Organizations:

Sole proprietorship, Registered partnership, Unregistered partnership, Public limited

Companies, Private limited Companies, Clubs, Associations, Societies, Charities,

Nationalized Organizations, Autonomous Bodies, NGO’s. It is for anyone who engaged

in frequent transactions.

Current Accounts of BRAC Bank Ltd:

Current Classic Account.

Current Plus Account.

EZEE Account.

Salary Account.

Campus Account.


Current Classic Account

Current Classic Account is a non interest-bearing account with cheque book & VISA Debit card

facility. The minimum account opening balance requirement is BDT 15,000. The account has a

maintenance fee of BDT 500 + VAT for every half year and Annual Debit Card Fee is BDT 600

+ VAT. The account comes with a 12 page cheque book free.

Current Classic Account opening procedure:

Any person or organization that has a legal standing in Bangladesh can open a Current Classic

Account.

Required document to open a Current Classic Account-Individuals:

Duly completed account opening form:

Name, occupational details and nationality of the applicant’s mentioned.

Applicant’s mentioned Date-of –Birth, mother’s and father’s mentioned.

Applicant’s mentioned Full mailing and permanent address mentioned.

Current Account ticked and Taka in currency column ticked.

Identification and support documents:

Photograph of the account holder.

Copy of National ID Card, Passport, driving license.

Nominee & others:

Name and Photograph of the nominee must be attested by the account holder.

If the nominee is minor, then his/her thumb impression and one legal guardian is must.

Signature of the applicant in the appropriate box (es).

The applicant will have to use the sign in all account related activities.

One bill copy of the communication address should be given, if it is not given then a

verification of the address must be filled up and verified by the introducer.

Initial Deposit:

The minimum account opening balance requirement is BDT 15,000

Introducer:


Name account number & Signature of the Introducer.

Introducer must be a existing account holder of BBL with at least 6 month’s satisfactory

relationship.

Photographs of the signatories duly attested by the Introducer.

Required document to open a Current Classic Account- Sole proprietorship:

Duly completed account opening form:

Name of the sole proprietorship with full mailing address.

Name and Telephone number of the two key personnel.

Mode of operation clearly stated.

Identification and support documents:

Copy of National ID Card, Passport, driving license of the signatories.

Photograph of the signatories.

Valid trade license.

Introducer and Initial Deposit for sole proprietorship is same as the individuals current

classic account.

Facilities in the Current Classic Account:


yearly/ half yearly Account maintenance Charges Tk. 500 Half-Yearly

Chequebook Issue Fee Free

Second Chequebook Issue Fee Tk. 100 for 12 pages, if balance is below Tk. 15,000


Closing of Current Classic Account:

Customers can close a savings account by filling in an account closing form. Customers

can withdraw all the amount end leave the funds to meet the account closing charges.

To close the account the customer must return the cheque book and Visa debit Card. The

employee will destroy the card and the cheque book in front of the customer.

Customer can also transfer the money left to another BBL account by fund transfer

option.


Current Plus Account

Current Plus Account offers you the freedom of unlimited transactions. There is no intercity

transaction fee for this account. The minimum account opening balance requirement is BDT

25,000. There is no Annual Debit Card Fee or any other upfront fees. The account has a Half-

Yearly Account Maintenance Fee of BDT 500 + VAT. However, the fee will be waived if the

account maintains an average balance of Taka 25,000 or above for the last six months. The

account comes with a 25 page first cheque book for free.

Current Plus Account opening procedure:

Any person or organization that has a legal standing in Bangladesh can open a Current Plus

Account.

Required document to open a Current Plus Account is same as the Current Classic

Account.

Facilities in the Current Plus Account:


No intercity transaction fee.

FREE VISA Debit card facility.

No upfront Fee or charges.

First cheque book of 25 pages for free.

Second cheque book onwards Tk. 200 for 25 pages, free if the last month’s average

balance is 25000 & above.

Closing of Current Plus Account is same as the Current Classic Account.


Ezee Account

BRAC Bank offers you Ezee Account a non-cheque interest bearing account for small savers

who are in frequent need of transaction. You don't need to write a cheque or stand in a long

queue to draw your own money from BRAC Bank. You can get a Debit Card to operate your

account round the clock. Ezee Account is an interest-bearing current account which offers

interest rate of 4% p.a. The minimum account opening balance requirement is BDT 2,000. Any

balance greater than zero will be eligible for interest. There is no Annual Account Maintenance

Fee. Annual Debit Card Fee is BDT 600 + VAT. This is a non-cheque-book account.

Required Documents to open a Ezee Account is same as the individuals Savings

Account.

Minimum Deposit required to open a Ezee Account:

The minimum deposit required to open a Ezee Account. is TK.2000.

Facilities in the Ezee Account:

Account opening balance: BDT 2000 only.


No Account Maintenance Fee.

No Chequebook Issue.


Any amount greater than zero can earn interest.

Ezee Account cheque book and Visa debit card:

Customers will not get cheque book for the Ezee Account. Ezee Account in the name of the

person, individuals or joint, will also get Visa debit card.


Salary Account

Salary Account is a non-cheque book individual account for employees of different Corporate

Houses, offered to facilitate the disbursements of their monthly salaries. Employees of

MNC/LLC/MID CORP/NGO/Large proprietorship/Partnership firm, other than foreign nationals

are eligible to open this account.

Interest rate for Salary Account is 4% p.a. Any balance greater than zero will be eligible for

interest. Interest calculation will be based on Daily Balance and Interest payment will be made

half yearly. There is no Annual Account Maintenance Fee in Salary Account. Annual Debit Card

Fees is BDT 300 + VAT. Cheque Book facility is also available for this account.

Eligibility for opening a Salary Account:

The organization needs to have a minimum of 10 employees and a payout of Tk. 1 lac per month

and an average salary per employee of Tk. 10,000 per month.

Required Documents to open a Salary Account:

A completed personal account opening form same as the individuals Current Account

including Copy of the office ID. If ID is not available appointment letter signed by the authority.

Here National ID card/passport is also mandatory.

Minimum Deposit required to open a Salary Account:

The minimum deposit required to open a Ezee Account. is TK.0.

Facilities in the Salary Account:

4% interest on any deposit amount(*On daily balance).

No Account Maintenance Fees.

No minimum balance required.

Partial waiver on VISA Debit Card.

Cheque book facility (Free for Aarong and BRAC staffs).

Loan facility at preferential rates (Personal loan, Home loan, Auto loan).

Salary Account cheque book and Visa debit card:

Customers will get cheque book and Visa debit card for the Salary Account. Salary Account in

the name of the person, individuals or joint, will also get Visa debit card.




Campus Account

Campus Account is an interest-bearing current account exclusively offered for university

students with an interest rate of 4% p.a. The minimum account opening balance requirement is

BDT 2,000. Any balance greater than zero will be eligible for interest. There is no Annual

Account Maintenance Fee. Annual Debit Card Fee is BDT 600 + VAT.

Required Documents to open a Campus Account:

A completed personal account opening form same as the individuals Current Account

including Id card of the particular educational institution. Here National ID card/passport is not

mandatory.

Minimum Deposit required to open a Campus Account:

The minimum deposit required to open a Campus Account is TK. 2000.

Facilities in the Campus Account:



Annual Visa Debit Card Fee is BDT 600 + VAT.

Any balance greater than zero will be eligible for interest

No yearly/ half yearly Account maintenance Charges.

No cheque book.

Campus Debit Card Fee(annual)-Discontinued- 400.

Tax rate on the Interest & on the Campus Account is same as the individuals Current

Account.

Salary Account statements is same as the individuals Current Account.

Campus Account cheque book and Visa debit card:

Customers will get cheque book and Visa debit card for the Campus Account. Campus Account

in the name of the person, individuals or joint, will also get Visa debit card.


Section 4: Deposit Products (Term Deposits)

Deposits maintained in the Time Deposits or Term Deposit accounts are withdrawn on the expiry

of a fixed period of time only.

Fixed Deposit Accounts.

DPS.

Term Deposit products of BRAC Bank Ltd:

DPS.

Fixed Deposit General.

Flexi DPS.

Interest First Fixed Deposit.


http://www.bracbank.com/DPS.php

http://www.bracbank.com/Interest-First-Fixed-Deposit.php

http://www.bracbank.com/Flexi-DPS.php

DPS( Deposit Premium Scheme)

BRAC Bank introduces the Deposit Premium Scheme (DPS) – a truly special savings plan that

allows you to save on a monthly basis and get a handsome amount at maturity – BRAC Bank

DPS account gives you the convenience of saving regularly in line with your monthly income

stream. So, if you want to create a big savings to fulfill your cherished dream DPS is the right

solution.

Installment sizes and DPS term

BRAC bank has a range of options for both installment size and maturity. The monthly

installment can be as low as BDT 500 or any multiples of it i.e. BDT 1,000, BDT 2,500, BDT

5,000 and so on. You are also free to choose the maturity of your DPS. You may select a period

of 4/7/11 or 14 Years, depending on your convenience.

Get a Savings Account and On-Line Banking Facility

Unlike other banks, BRAC Bank gives you the luxury of choosing any day of the month as your

installment date. Moreover, with a DPS at BRAC Bank, you will also have a Savings Account

with personalized chequebook and receive on-line banking facility.

Auto Transfer Facility

Managing your DPS had never been so easy. You don’t have to stand in long queues to deposit

your installment every month. you can always deposit more than one installment in your savings

account and we will automatically transfer the installment to your DPS account on due dates.

Fixed Deposit General

Fixed Deposit General is a non-transactional account that gives interest and principal at maturity.

Minimum amount required to open the General FD account is BDT 50,000. FD General can be

opened for 1/3/6/12/24/36 months. Interest is paid on maturity, calculated on 360 days, as per the


http://www.bracbank.com/DPS.php

Interest Rate Matrix. This account is available on a roll over basis until the customer confirms its

closure. 10% Government Tax shall apply to the interest amount.

Flexi Deposit Premium Scheme (Flexi DPS)

Flexi Deposit Premium Scheme is a non-transactional account that a customer uses for interest

earning and savings purposes through monthly installment basis. Minimum amount required to

open an FDPS account is BDT 500 and its multiples. FDPS can be opened for

1/2/3/4/5/6/7/8/9/10 years. This account is available on a roll over basis until the customer

authorizes its closure. Interest is accrued to the FDPS account on monthly basis. Interest (after

adjusting 10% Government tax on the interest amount) will be paid at maturity date, as per the

Interest Rate Matrix.

Monthly installment of Flexi DPS:

All the figures are Indicative and subject to govt. taxes.

Interest First Fixed Deposit (IFFD)


Monthly Installment TK. 500

1 Year 6,246

2 Years 13,049

3 Years 20,561

4 Years 28,816

5 Years 37,989

6 Years 48,248

7 Years 59,793

8 Years 72,045

9 Years 86,619

10 Years 101,779

Monthly Installment TK. 1,000

1 Year 12,492

2 Years 26,098

3 Years 41,123

4 Years 57,632

5 Years 75,978

6 Years 96,496

7 Years 119,586

8 Years 144,090

9 Years 173,238

10 Years 203,557


1 Year 62,461

2 Years 130,492

3 Years 205,615

4 Years 288,161

5 Years 379,891

6 Years 482,482

7 Years 597,930

8 Years 720,452

9 Years 866,189

10 Years 1,017,785


1 Year 124,922

2 Years 260,983

3 Years 411,229

4 Years 576,321

5 Years 759,782

6 Years 964,963

7 Years 1,195,859

8 Years 1,440,903

9 Years 1,732,378

10 Years 2,035,571

Interest First Fixed Deposit is a non-transactional account that a customer uses for interest

earning in advance and savings purposes. The unique feature of this product is that interest is

given upfront, at the time of opening the fixed deposit. Minimum amount required to open an

IFFD account is BDT 100,000. IFFD can be opened for 3/6/12 months. Interest (after the

adjustments of 10% Government tax on the interest amount) is immediately transferred to the

link account, as per the Interest Rate Matrix.

Chapter-3

Retail Banking (Lending schemes and services )

Section 1: An overview of Loan Products

BRAC Bank is offering the following loan and advance product to the client for financing

different purpose that fulfill the requirements of the bank and have good return to the investment

as well as satisfy the client. The loan and advance Products are:

Salary Loan.

Quick Loan.

Auto Loan.

Home Loan.

Secured Loan/Overdraft.

Unsecured Loan:

A unsecured debt refers to any type of debt or general obligation that is not collateralized by a

lien on specific assets of the borrower in the case of a bankruptcy or liquidation. In the event of

the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of

the borrower after the specific pledged assets have been assigned to the secured creditors,

although the unsecured creditors will usually realize a smaller proportion of their claims than the

secured creditors. Example: Salary Loan, Quick Loan etc.

Secured Loan:

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as

collateral for the loan, which then becomes a secured debt owed to the creditor who gives the

loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the

creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by


http://en.wikipedia.org/wiki/Default_(finance)

http://en.wikipedia.org/wiki/Collateral_(finance)

http://en.wikipedia.org/wiki/Loan

http://www.bracbank.com/Quick-Loan.php

http://www.bracbank.com/Salary-Loan.php

http://en.wikipedia.org/wiki/Secured_loan

http://en.wikipedia.org/wiki/Bankruptcy

http://en.wikipedia.org/wiki/Lien

http://en.wikipedia.org/wiki/Collateral_(finance)

http://en.wikipedia.org/wiki/Debt

http://www.bracbank.com/Secured.php

http://www.bracbank.com/Home-Loan.php

http://www.bracbank.com/Auto-Loan.php

http://www.bracbank.com/Quick-Loan.php

http://www.bracbank.com/Salary-Loan.php

regaining the amount originally lent to the borrower. From the creditor's perspective this is a

category of debt in which a lender has been granted a portion of the bundle of rights to specified

property. Example: Auto Loan, Home Loan, Secured Loan/Overdraft etc.

Section 2: Unsecured Loan Products

Salary Loan

Salary Loan (SAL) is a term Loan facility offered by Bank’s Retail Banking Division to

individual salaried people living in the cities / towns where the Bank has its operations to cater

his/her personal or professional needs. It is a clean or unsecured loan in the sense that there is no

cash security (like Govt. Savings Certificates or Fixed Deposits etc) taken against the loan.

This is an “any purpose” loan which means the applicant does not have to declare the purpose for

which he / she is taking the loan, hence there will be no hypothecation over the asset to be

purchased. The credit risk of the product is covered by a process of strict selection of prospective

borrower and the company he/she is working for.

If anyone want to keep an extra 15 month's salary in his pocket, he can get BRAC Bank Salary

loan, Loan against your salary. If a individual is a salaried personnel working in Bangladesh, he

can apply for a salary loan. Because Salary Loan from BRAC Bank has been designed with what

is just in his minds.

Eligibility:

Employed as a regular salaried staff.

Have minimum age of 23 years, max - 60 years (at the time of maturity)

If he earn a monthly salary of BDT 15,000.

Features:

Loan amount up to BDT 1000,000.

Loan up to 15 times of your Salary.

Attractive Interest Rate.


http://www.bracbank.com/Secured.php

http://www.bracbank.com/Home-Loan.php

http://www.bracbank.com/Auto-Loan.php

http://en.wikipedia.org/wiki/Bundle_of_rights

http://en.wikipedia.org/wiki/Debt

No collateral of cash securities.

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 6 month's bank statement.

Last salary slip/Letter of introduction.

Proof of identity.

Proof of employment of minimum 1 year.

Schedule of Charges:

Processing fee: 1.5% +VAT of the loan amount.

Early Settlement Fees:

- 2%+ VAT on the outstanding amount if settled within 1st 2 years,

- 1%+ VAT for 2 years & above.


Quick Loan

Quick loan is a personal loan facility offered by the Retail Banking Division to businessmen who

have sound business records for minimum 2 years with a valid trade license. It is a clean lending

product in the sense that there is no cash security taken against the loan. This is an “any purpose”

loan; hence there will be no hypothecation over the asset to be purchased. However, the

applicant must need to mention the purpose of the loan clearly in the loan application form. The

credit risk of the product is covered by a strict evaluation and assessment of customer’s bank

statement with any bank in Bangladesh.For quicker needs that arise quickly BRAC Bank offers

Quick loans. If anyone is a businessman or self employed personnel, Quick loan is specially

designed just to cater his needs.

Eligibility:

Businessman & Self Employed Personnel (Doctors, Engineers, Architects, and

Accountants etc.).

Minimum age of 23 Years; Maximum 65 Years (At Maturity).

Having minimum income of BDT 20,000.

Features:

Loan amount up to BDT 1000,000.

Attractive Interest Rate.

No collateral of cash securities.

Flexible repayment Equal Monthly Installments (EMIs) over a period of 12 months to 60

months.

Documents required:

Last 1 Year bank statement.


Valid Trade License.

TIN Certificate.

Proof of identity.

Schedule of Charges is same as the Salary Loan.

Section 3: Secured Loan Products

Auto Loan

Auto Loan is a term loan facility for the middle class to upper class people of the cities, where

the bank has its operations, to buy automobiles for their personal use. Under this scheme, the

vehicle is hypothecated to the bank only. In addition to this registration requirement, the loan is

also partially secured by the commonly acceptable form available in the market as

hypothecation.

Whether anyone wants to purchase a brand new car or a reconditioned one, BRAC Bank Auto

Loan is built for maximum speed and efficiency. Get your dream car on the road in no time.

Eligibility:

Available for Salaried individuals, Business Persons, Self Employed & Landlord.

Age between 21 at the time of application to 65 at the time of maturity.

Minimum Monthly Income: BDT 25,000 (for salaried); BDT 35,000 (for others).

Length of service: Min 1 Year as permanent employee.

Age of Business: Min 2 years.

Features:

Upto 90% of quoted value of the car.

Loan Amount: Up to BDT 2,000,000.

Competitive Interest Rates.

Tenor: 12 to 60 months.

For brand new and reconditioned cars.

Documents required:

Latest one year's personal bank statement.

Photocopy of national ID/Passport.


One copy passport size photograph of the applicant.

One copy passport size photograph of guarantor.

Price quotation of the vehicle.

Business card/ visiting card of the applicant.

Personal TIN certificate.

Additional documents required for salaried person:

Letter of Introduction stating salary, issued by the employer.

Additional documents required for business person:

Copy of Trade License.

Company’s bank statement for last one year.

Memorandum of Articles for Limited Liability Company.

Additional documents required for self employed person:

Professional Certificate issued by authorized institution.

Additional documents required for self landlord:

Valid documents of the property.

Rent receipt/deed.


Processing Fee: 1.0% of Loan Amount.

Early Settlement Fee: 2% (within 1 -2 years), 1% (after 2 years and before expiry).


Home Loan (Apon Ghor)

Apon Ghar (Own Home) is the Home Loan product from Brac Bank with a difference. It is not

just a loan, rather a complete solution stretching with five value-added FREE services:

1. BRAC Bank Apon Ghar provides you personal bank representative for information

search till moving into the home.

2. BRAC Bank Apon Ghar helps find a home suitable for you taste, budget and area. In

addition to these there are attractive privilege consultancy for:

i. Interior.

ii. Furniture & Soft Furnishing.

iii. Home Appliance.

iv. Color & Window Treatment.

v. Light & Floor.

3. Apon Ghar is the quickest loan to get disbursed.

4. Apon Ghar finds you Home with proper legal documents.

5. Apon Ghar needs the least documentation for processing.

Product Type & purpose:

Home Loan:

Financing against purchase of one’s Apartment or house ( under-construction / semi-completed /

completed / secondhand ).

Home Credit:

Financing against Renovation / Extension / construction of one’s home.

Takeover:

Financing against transfer of the current balance of the existing Housing loan to BRAC Bank.

Customer Segment & Eligibility:

Salaried Individuals:

Total Job Experience is minimum 3 years & must be permanent in current job.


Minimum income is BDT 25,000/-.

Businessmen / Self Employed Individuals / Landlords:

Owner / Director of Proprietorship / Partnership / Private Limited Company.

Total Business Experience is minimum 3 years.

Minimum income is BDT 30,000.

Product Features:

Owner of the property must be the main borrower.

Mortgaged property must be located within the metropolitan area of Dhaka, Greater

Dhaka where RAJUK Plan is available, Chittagong & Sylhet.

Applicants must be permanent resident of Bangladesh.

Minimum age 25 years & maximum age 65 years at the time of maturity.

Competitive Interest Rate.

Maximum loan tenor 20 years.

Processing Fees & Other Charges:

Loan up to BDT 15 Lac is @ 2% on loan amount + VAT.

Loan above BDT 15 Lac is @ 1.5% on loan amount + VAT.

For Take Over cum Home Credit loan 1% on loan amount + VAT.

In case of Takeover, processing fee is 0.50% of loan amount +VAT.

Valuation charge @ 3500 + VAT in addition to the processing fee

Early Settlement & Rescheduling Fees:

Processing Fee:

2% of outstanding if settled within first 5 year + VAT.

1% of outstanding if settled after 5 year + VAT.

Rescheduling fee due to Interest Rate change / Tenor change – 0.25% + VAT of

outstanding or maximum Tk 10,000 + VAT whichever is lower.

Date rescheduling fee Tk 2000+VAT each time.

Partial pre-payment & fees:

Minimum partial pre-payment amount is BDT 1,00,000.

2%+VAT on pre-payment amount within first 5 years.

1%+VAT on pre-payment amount after 5 year.

Common Documents:


Latest 01year personal bank statement.

Latest Tax Clearance Certificate (where applicable)

- Photocopy of National ID Card / Passport.

- Allotment Letter/ Allotment Agreement/ Byna Deed for Home Loan.

- Registered ownership deed for Home Credit / Take Over Loan.

- Price quotation for Home Credit Loan.

Salaried Individuals:

Letter of Introduction (LOI).

Latest 01year salary account statement.

Businessmen:

Trade License for last 3 years.

Latest 1 year bank statement of the company.

Registered partnership deed for Partnership Company.

MOA+ Certificate of Incorporation+ Latest Schedule X for Private Limited

Company.

Self-Employed:

Certificate of membership of respective professional association.

Declaration on self-pad along with seal.

Certificate of Professional degree.

Land Lord:

Registered ownership deed.

Rental deed.

Copy of any utility bill (Electricity/ Water/Gas).


Secured Loan/Overdraft

BRAC Bank provides loan against fixed deposits so that one can meet any cash emergencies

without the need to give up on high yield savings.

Eligibility:

Any individual with fixed deposits and WEDB purchased from BRAC Bank Ltd may apply for

this facility.

Features:

Secured Loan: Term Loan.

Tenor: 12 to 60 months.

Paid in Equal monthly installments.

Secured Overdraft: Continuous Loan.

Tenor: 12 months (Auto renewal option available).

Quarterly interest payments.

Other features:

Loan Amount up to 90% of Face Value of your fixed deposits,

Minimum Spread.

Early settlement facilities available.

Enhancement Facilities available.

Cross collateralization allowed.

Documents Required:

Copy of National ID.


Processing Fee:

1.0% of the loan amount.

Maximum BDT 10,000.

Minimum BDT 1000.

Early Settlement Fee:


Secured Loan- 1% of outstanding amount at any time before maturity; Maximum

BDT 10,000.

Secured Overdraft - 2% of outstanding or BDT 2,000, whichever is lower.

Chapter-4

Card Products and servicesSection 1: An overview of Credit Cards

Credit Cards:

A Credit Card is a piece of plastic used for purchasing goods and services and for cash

disbursement on credit terms.

Credit card is a completely unsecured loan (i.e. credit without collateral or security)

facility for the customers. Through a credit card a customer uses bank’s money. One who

wants to have it- need to show no guarantee or something like that.

Each card holder is assigned a revolving credit limit by the issuing financial institution.

Card holder can purchase goods/services up to credit limit and can re-use the credit

facility upon re-payment.

The card holder is billed periodically (usually monthly) for re-payment of the credit

extended. The transactions during the period are summarized in the bill.

Credit card allows partial payments for purchases, but charges interest on the amount

owed. Interest rates are traditionally higher than those charged on consumer loans. Card

holders can pay outstanding in full avoid to interest on payments.

Credit card is safer substitute to cash and is the major mode of payment worldwide.

The Need of Credit Cards:

A friend in need.

Better source of Finance.

Lesser formality than personal loans.

Easier & faster to get.

Safer to carry.

Wider acceptance.

Better Life.


Product Matrix

BRAC Bank offers 4types of VISA Card:

BIN Product Minimum Income

Limit

BDT USD

MIN MAX

432145 Visa Classic (Silver) Dual* Salaried: 15000

* Self employed:

20000

* Govt: 7500 (Basic)

10000 75000

Equivalent BDT Limit

432146 Visa Classic (Silver) Local 10000 75000

432147 Visa Gold Dual * Salaried: 40000

* Self employed:

45000

* Govt: 15000 (Basic)

75001 500000

432148 Visa Gold Local 75001 500000

Visa Classic Types:

Visa Classic Local:

This is a local Visa Credit Card which is valid only in Bangladesh. It can only be used in local

currency (BDT) within the country. This type of credit card has a limit ranging from BDT 10,000

to BDT 75,000. This type of card has designed for medium earner category customers.

Visa Classic Dual:

This is basically one plastic that has dual options to make transaction in two currencies. Its

acceptance jurisdiction is within the country and outside the country in BDT and USD

respectively. Classic dual is for the medium earner category customers. Its USD credit limit will

be within approved BDT limit assigned for this category.

Minimum income required for this category is as:


* Salaried: 15000

* Self employed: 20000

* Government and semi govt.: 7500 (Basic)

Visa Gold Local:

This is also local Visa taka card of which acceptance jurisdiction only in Bangladesh and

transaction currency is BDT. The differences between these two cards are higher credit limit than

classic card. Credit limit of Visa Gold Card is ranging from BDT 75,001 to BDT 5,00,000. This

type of card has been designed for the higher earner category customers.

Visa Gold Dual:

This is a high value dual card remaining other features same with classic dual. Gold dual is also

for the higher earner category customers and its USD credit limit will be within approved BDT

limit assigned for this category.

Minimum income required for this category is as:

* Salaried: 40000

* Self employed: 45000

* Government and semi govt.: 15000 (Basic)

Secured dual card’s limit will be maximum USD 30,000 against lien on RFCD or ERQ

account.

Eligibility:

Classic Gold

Age

Primary 21 – 60

Supplementary 18 – 60

Quick Card 18 years or more with no max age bar

Minimum Income

* Salaried: 15000 * Self employed: 20000* Government and semi govt.: 7500 (Basic)

* Salaried: 40000 * Self employed: 45000* Government and semi govt.: 15000 (Basic)

NB: Part cash salary will be considered maximum @20% of account credit or proven cash part whichever is lower.

Work Experience & Business Existence

Minimum business existence should be 2 years for self-employed.


Length of service 6 months (including provision period) for salaried applicants.

Contractual staff with length of service for minimum one year with one renewal.

Applicant Types:

Primary Applicant:

Applicant who has a regular source of income applied for a credit card for his own will be the

primary/base cardholder. Primary cardholder is solely liable to pay all the dues/outstanding

amount of his/her credit card.

Supplementary Applicant:

Primary cardholder can request for additional cards under the same agreement for his/her chosen

persons which is called supplementary card.

A primary cardholder is entitled for maximum 3 supplementary cards.

No Annual fee for the 1st supplementary card and from the next year it has waiver

subject to 18 transactions (at least 10 POS transaction is mandatory) over the year.

Primary card holder can allow any percentage of his/her limits of supplementary

cardholder. It must confirm in written by the primary cardholder while applying for

supplementary card.

Primary cardholder is solely liable to pay all the dues/outstanding amount of

supplementary card but supplementary cardholders may also pay the dues if they want to

pay. But in that case he or she has to mention the basic cardholder’s credit card number

on the payment slip.

Both primary and supplementary cardholder should pay the outstanding dues separately

in separate payment slip.

Annual fees:

Payment of Annual fee for your Credit Card is totally your choice. BRAC Bank allows

you to pay no Annual fee for subsequent year as long as you transact at least 18 times

(minimum 10 POS transaction) in a year. It’s your Card, your choice.

This is applicable for your supplementary cardholder as well.


Card Cheque Facility:

With BBL Credit Card you can enjoy cheque facility against your Credit Card limit. You can

make payment (account payee only) to any person or organization where Credit Card facility is

not available. You can use your 100% limit through Card Cheque with a minimum processing

fee. You will get your first cheque book free.

Card Cheque Fee

1st Card Cheque Book Free

Card Cheque -12 Leaves TK. 150.00+VAT

Card Cheque -25 Leaves TK. 250.00+VAT

Processing Fee (1.5% or Tk. 100.00)+VAT whichever is higher


Gold Card Silver Card

Annual Fee for Primary Card

Local TK.2500.00+VAT TK.1300.00+VAT

Universal Card

Supplementary Card

First Supplementary Card Free

Second Supplementary Card and onward TK. 600.00+VAT

Interest 27% pa

Interest free period 20 days to 50 days subject to previous outstanding is nil

Facilities in BBL credit card:

Worldwide Acceptance:

BRAC Bank Credit Card is accepted in 5000 VISA merchant outlets around the country

and over 24 million VISA outlets worldwide.

BBL Card gives you the purchase option over a wide range of products and services such

as hotels, airlines & travel agents, shopping malls & stores, hospitals & diagnostic

centers, jewelers, electronics & computer shops, mobile phones, fuel station and many

more.

Even you can use your credit card through internet to purchase air ticket, or for hotel

booking while you are planning to go abroad.

Extensive Transaction Alert:

For the first time in Bangladesh BRAC Bank brings an extensive Transaction Alert

Service for its Cardholders. Transaction Alert service allows you to stay updated on your

Credit Card transactions. For each predefined transaction, an alert will be generated and

sent to your mobile instantly. With only BDT 5+VAT you can enroll to the service.

Exciting Fast Reward Point:

Special loyalty program allows you to earn some points every time whenever you spend

your money through your BBL Credit Card on Retail Purchase only.

For every Tk.50 spent, you get to earn 1 reward point. The accumulated reward points

can be redeemed and you can select exciting gift items from Reward Catalog. The

enrollment is free. We will be sending you the Reward Catalog.

SMS Banking Push/Pull Service:

BRAC Bank brings you SMS Banking facility. A facility that will enable you to track

your credit card account even while you are on the move.

Type any of the following desired keyword and send to 3939 to get your credit card

information from any GP, BL, Robi and Warid subscribers.

Enrollment of this service is done automatically during the issuing of the card.


For de-enrollment of this service cardholder has to fill out the customer requisition form

available at BBL branch.

e-Statement Service:

BRAC Bank brings more convenience for you through e-statement that will enable you to

receive your monthly Credit Card statement via e-mail absolutely for free and

immediately after generating you statement. No doubt now a days e-statement is the

fastest, reliable and efficient service, which ultimately minimizes your paper work and

maximizes your convenience.

e-Statement will be sent maximum up to 3 (Three) e-mail addresses. For enrollment you

have to fill up the enrollment form and send/drop it to any branch of BRAC Bank. You

also have the option to receive both hard copy and e-statement as bills. To avail both

options, you will be charged only TK 50+VAT per month.

Credit Shield Facility:

Credit Shield facility is a triple benefits Insurance Plan for the BBL Cardholders. We can

describe the benefits as follows:

In the event of death or permanent disability of BBL credit cardholder, the entire dues

will be waived.

Not only that, the cardholder or his/her family will receive equal amount from BBL as

compensation.

Moreover, for any kind of accidental death, a coverage up to BDT 2 lac for Gold and

BDT 1 lac for Classic card will be given to the credit cardholder’s family under Credit

Shield.

A very nominal charge 0.35% on monthly outstanding amount will be applicable for this

facility.

Balance Transfer option:

BRAC Bank brings Balance Transfer facility for its Cardholders. If you have other

bank’s Credit Card then you have the option to transfer your current outstanding balance

at a much cheaper interest rate & fee to your BBL Credit Card.

Applicable interest rate for Balance Transfer will be @ 22%. A fee is applicable for this

service @ 2% of the transferred amount or TK 150 whichever is higher.

Convenient Payment Option:


When you receive your bill, you need not pay the entire bill amount. You have the flexibility

of selecting any of the following payment options:

Pay the total amount due

Pay the minimum amount due (5% of your total outstanding or BDT 500 whichever is

higher of local card and for Dual card 5% of your outstanding or USD 10 whichever is

higher) and the balance is carried forward to subsequent statements

You can pay your payment conveniently, without creating any extra pressure on your

finances.

For Dual card payment has to make separately for BDT and USD portion.

Cardholder has to pay separately for BDT and USD outstanding as we generate the

Bill separately for them.

PayFlex Program:

BBL introduces PayFlex, an easy installment program for its credit cardholders.

Customers can buy their

favorite products from any retail outlet in Bangladesh with a minimum price of TK

3,000 and pay back in easy [email protected]% only.

Credit Cardholders can also buy products from selected outlets and enjoy payment

in installments @ 0% Interest rate. So far we have signed 0% partnership with the

selective outlets.

Flexible Transferable Limit:

BBL Universal Card is the only card that allows you to set your preference regarding

the USD limit and BDT limit within the approved limit and can convert BDT Limit

anytime to USD limit and vice versa.

Now you can avail your 100% approved limit either full in BDT or in USD (Subject

to yearly Travel quota entitlement). You can set your preferences also. You can also

convert your USD limit to BDT limit or BDT limit to USD limit as according to your

needs after making payment.

Required Documents:

Salaried Person:

Pay Slip Copy/ Letter of Introduction (LOI).

Passport Copy (Must for Dual Cards).


National ID/ Voter ID/Office ID/Driving License.

TIN Certificate/Tax Return Copy.

1 copy passport size picture of the cardholder.

1 copy Passport size picture of nominee of credit shield.

6 month/Current Cycle Bank Statement (If other than BRAC Bank Account).

BBL Bank Account Holder need to mention their A/C Number only.

Self Employed:

Trade License (business existing for at least two years).

Bank Statement (latest 1 year).

Tin Certificate.

National ID/ Voter ID/Office ID/Driving License.

Passport Copy is must for Dual Cards.

1 copy passport size picture of the cardholder.

1 copy Passport size picture of nominee of credit shield.

MOA (Limited Company), Partnership Deed (Partnership business).

Latest TNT Bill Copy (any one).

Forms to be filled and signed:

Application Form (Must filled by the cardholder).

Most Important Document Form.

Card Cheque Application Form (Though the first cheque book is free, but for regulatory

purpose you need to sign the application form).

Declaration Form (Must for Dual Card).

Payment process:

Cash Payment: Cash payment will be accepted at all Branches of BRAC Bank Ltd.

Debit Instruction: If you are a BRAC Bank account holder, you can instruct us to debit

your account by filling up the payment slip enclosed with this statement. This filled

payment slip need to be submitted at your nearest BRAC Bank Branch.

Auto Debit: If you are a BRAC Bank account holder, you can avail direct debit (auto

debit) facility to debit your account for payment of your minimum or full due on the

payment due date.


Payment by Cheque: you can also pay your dues through cheque. In that case, please

allow sufficient time for your cheque to be cleared. Cross all your cheques which must be

payable to BRAC Bank Ltd. Cards Services. Please mention your card number

somewhere.

Payment through Internet Banking: You can pay your credit card due through internet

if you have an account with BRAC Bank. Through this option from anywhere of this

globe you can access to your account with BRAC Bank and pay the due of your credit

card on time.

Minimum Payment Due:

5% of the total outstanding or BDT 500 whichever is higher.

For USD payment 5% or USD 10 whichever is higher.

Minimum due must be paid within due date otherwise system will automatically block the

card and charge a late payment fee as per schedule.

Interest Free Period:

A cardholder will get maximum 50 days and minimum 20 days interest free period on

POS transaction.

He will get same interest free period on Card Cheque Transaction subject to previous

outstanding is Nil or not.

Interest free period will not be applicable for Cash advance transaction. On cash advance

card holder will be charged interest from transaction date.

Payment Due Date:

Payment due date is the 20th day from the statement date. E.g. if one card holders

statement generate on 1st day of a month , his payment due date will be on 21st day of that

month.

Cardholder will get privilege 20 days to pay his/her dues from statement generation date.

Over Limit:

Generally cardholders are not allowed to spend more than his/her approved limit for

transaction. Over limit situation arrives once the fee and charges are imposed based on

outstanding, which will be equal or more then Approved limit. A fee will be charged as

per following schedule.

Over Limit Charges


Local Tk. 500.00+VAT Tk. 350.00+VAT

Universal Card USD 10.00+VAT

Upgrade/downgrade process:

Card may be upgraded as per cardholder’s request. It is credit analyst’s discretion to

upgrade a card from classic card to gold card or local card to Dual card. It will be done if

his income documents support to upgrade the card. A secured card may be upgraded

based on 90% LTV (Loan to Value). Down grade is cardholder’s choice. If they want, it

may be downgraded any time. During upgrade and downgrade if the product category

chaged then a scheduled plastic fee will be charged with amount of BDT 100.

Migration:

Migration refers converting a local card to universal card. If a cardholder wants to convert his

local card to universal card s/he has to pay a migration fee as per following schedule:

CARD FEE

Classic BDT 500+ 15% VatGold BDT 1000+ 15% Vat


Section 2: An overview of Debit Cards/ATM Cards

ATM:

ATM stands for “Automated Teller Machine.” ATM card is a plastic card to be used in ATM

machine with some electronically encoded data on the magnetic stripe in it. This is probably the

most popular form of Plastic Money, which is totally machine-based technology. ATM card is

used to withdraw, deposit, balance inquiry, account transfer, bills payment, account statement

checking etc. all these things can be done without standing in a boring queue inside any bank

premises. ATM card works through Personal Identification Number (PIN) pad facility.

Customers are given PIN numbers (usually 4 digits), which is totally secured. Every time he

wants to use his ATM card he needs this PIN to use.

Debit Card:

The BBL debit card is a dual purpose card-it has usual ATM card functionality and it can

be used for making payment across nominated merchant outlets.

A debit card is a piece of plastic used for purchasing goods & services and for obtaining

cash disbursements on Debit terms.

There is no limit issued by the financial institution. Card holders can purchase goods and

services up to debit limit and can re-use the debit facility upon payment.

Debit card not allows any partial payments for purchases, no interest charges on the

amount owed.

Debit card is a safer substitute for cash and is the major mode of payment worldwide.

VISA Debit Card:

Debit Card means – the uses of one’s own money through an electronically encoded card from

his pre-deposited account. It works against available money in the account. Without having any


money in the specific account-no transaction can take place through Debit Card. Every Debit

Card can be used both in ATM and Point-of-Sale (POS) terminals.

VISA is a very renowned Debit Card facility providing organization in the world. VISA Debit

Card means-any Debit Card using VISA logo in it. VISA Debit Card is three types:

VISA Debit

VISA Electron

VISA Flag / Plus ATM

Again this is to inform that – Debit Card also needs PIN based technology to use it through.

Account number in VISA or any other Debit Card can be embossed or without embossed

(Indent printed)

Who can get a debit card:

A person, who has an account in BBL, will get a VISA debit card. All savings and current

account holders will get VISA debit card instantly after the account opening. But joint account

holders will get VISA debit card/s after 3-4 working days of account opening.

How does debit card benefited:

It gives instant and total access to bank account from anywhere in Bangladesh, at any time. It lets

view the account balance, gives mini statements and withdraws cash from 150 ATM’s

throughout the country. One can use debit card for purchases at more also

Charges for Debit Card:

The yearly one off charge to any debit card is TK.600+VAT. If anyone lost or damage the card

then he have to pay TK.300+VAT for re-issue of a new card and pin.

Important information about the debit card:

Sign the debit card immediately on the signature panel to avoid any misuse and financial

loss.

A person’s debit card is only for his use. He can’t handover it to anyone other than

designated officers of the bank at the bank’s branches.


Keep the pin in a safe place. Don’t keep the pin with the debit card and don’t disclose the

pin to anyone.

Debit card users will enjoy special discounts and other lifestyle offerings from selected

partners time to time.

Debit Card is only for use in Bangldesh.

Don’t leave the debit card near a TV or other electronic devices that have a continuous

magnetic field.

Section 3: Other Card/s

BRAC Bank ICDDR, B Credit Card:

BRAC Bank ICDDR, B co branding Credit Card is a new variant product of our existing credit

card, which is designed to leverage the high brand value of ICDDR, B,an international health

institute for research.

This card has similar functionality as BRAC Bank Credit Card with extra advantage of donating

money to ICDDR, B hospital endowment fund.

Features:

Flexible Transferable Limit.

Annual fee is your choice.

Card cheque Facility.

FAST Reward points.

Balance Transfer.

Credit Shield Facility.

Extensive SMS Service & Transaction Alert.

Real Time Payment Update.

PayFlex.

Immediate Cash Advance program.

Worldwide Acceptance.

Global Emergency Assistance Facility.

Supplementary Card.

Convenient Payment option.


Auto debit option.

Self set limit.

BBL 24-hours Call Center.

Alternative Payment channels.

Internet Banking.

Chapter-5

Other services

Section 1: Pay order

Sometimes customers use Pay order for the transfer of money from one place to another. For

getting a Pay order, customer has to fill up a Pay order form. The form contains date, name and

Account No/Cheque No (if cheque is given for issuing the PO) of the applicant, signature of the

applicant, draft number, name of the payee and name of the branch on which the PO will be

drawn and the amount of the P(including the commission of the Bank) . The form will be duly

signed by the applicant and by the authorized officer.

For issuing pay order BBL charges commission on the following rate:

Pay Order/Demand Draft Issuance(LCY) Up to TK.1 Lac: TK: 100+VAT

Above TK.1 Lac: TK: 200+VAT

Pay Order/Demand Draft Cancellation(LCY) TK: 100+VAT

Demand Draft Issuance(FCY) TK: 1000+VAT

Pay Order/Demand Draft Cancellation(LCY) TK: 500+VAT

Payment of Pay Order:

The pay order is presented to the bank either through clearance or for credit to the client’s

account. While payment, relative entry is given in the pay order register with the date of

payment.

Cancellation of Pay Order:

The following procedure should be followed for the cancellation of the pay order:


The client should submit a written request for canceling the pay order attaching therewith the

original pay order.

The signature of the purchaser will have to be verified from the original application form.

Manager’s prior permission is to be obtained before refunding the amount of the pay order.

Cancellation charge is to be recovered from the applicant and only the amount of the pay

order less cancellation charge should be refunded. Commission recorded for issuing of the

original pay order should not be refunded.

Then the officer should write “cancelled” on the pay order.

The original entries should be reversed with narration.

Cancellation of the pay order should also be recorded in the register.


Section 2: Locker services & ATM’s

BRAC Bank Ltd. provides Locker Services to its customers. Customers who have an account can

easily have that service by filling up an application form. The customers can keep their any

valuable asset safe in the locker by paying a service charge yearly.

Charges are as follows:

Small Locker BDT 3,500(yearly) for Dhaka & Ctg branches,

BDT 3,000(yearly) for remaining branches.

Medium Locker BDT 5,200 (yearly) for Dhaka & Ctg branches,


Large Locker BDT 7,200 (yearly) for Dhaka & Ctg branches,


ATM services:

ATM stands for “Automated Teller Machine.” ATM card is a plastic card to be used in ATM

machine with some electronically encoded data on the magnetic stripe in it. This is probably the

most popular form of Plastic Money, which is totally machine-based technology. ATM card is

used to withdraw, deposit, balance inquiry, account transfer, bills payment, account statement

checking etc. all these things can be done without standing in a boring queue inside any bank

premises. ATM card works through Personal Identification Number (PIN) pad facility.

Customers are given PIN numbers (usually 4 digits), which is totally secured. Every time he

wants to use his ATM card he needs this PIN to use.

In 2009, over 60% of all cash transactions were made through ATM’s. Bank increased their

ATM network from 125 on December 31, 2008 to 177 ATM’s by December 31, 2009. BBL is

the market leader in terms of number of volumes of transactions though ATM’s.


Section 3: SMS Banking, Phone Banking& Internet Banking service

BRAC Bank starts to provide a new service through SMS & Phone. Now, a customer needs not

to come to the Bank to inquiry of his/ her account balance. Any account holder can know about

the balance through SMS from the mobile or through phone banking. But it is required to

registration his/her mobile number to the bank.

SMS Banking Features:

Instant Account Balance & Mini Statement.

Fixed Deposit Maturity Alarm.

High Value Transaction Alert.

Account status change alert.

Welcome alert (for account opening).

Payment (loan) failure alert.

Cheque clearing failure alert.

Simple & Convenient:

With SMS Banking, clients do have to send the statement through mail or call up our branches.

Once anyone become a member of SMS Banking, will have 24-hours access to the key financial

information of his account.

Push & Pull:

Through BRAC Bank SMS Banking, one will be able to access his account's current information

like balance, last few transaction and a range of other financial information by typing a pre-

defined key letter ( Like 'A' for Account Balance and 'T' for last few Transactions) and send to

3939.


This Service is available for GP, Banglalink, Warid and Robi subscribers only.

Phone Banking:

With BRAC Bank 24 hours Phone Banking (01819-230000/01819-260000), one’s accounts are

just a call away. One can enjoy the convenience of banking anytime, anywhere simply by

pressing a few buttons on phone.

Phone Banking Features:

Account detail.

Balance inquiry.

Product Information.

Cheque related services.

Remittance status and many more.

Internet Banking:

BRAC Bank provides a new service through Internet. Now, a customer can access his account

from anywhere of the country through internet banking facility. Any account holder can know

about the balance, can do fund transfer (limit is -50,000) and can give credit card bills through

Internet banking. But it is required to registration his/her email address to the bank.

Internet Banking Features:

Account detail.

Balance inquiry.

Product Information.

Statement printout.

Fund transfer up to TK.50,000/=.

Payment of BBL credit card bills.


Company Competitive situation

BRAC Bank Ltd has just completed another successful year. The 11th annual general meeting

(AGM) of BRAC Bank Ltd was held on 25th March, 2010. Looking over 2009 at a glance,

BRAC Bank Ltd’s performance has increased significantly in all aspects. Their operating cost as

a percentage of funds under management (FUM) reduced from 2.59% in 2008 to 2.54% in 2009.

Profit After Tax (PAT) has increased by BDT 331 million while assets increased by BDT 22,140

million, highly contributed by the increase in loans and advances by BDT 11,474 million.

Deposits of BRAC Bank Ltd have significantly improved by BDT 17,213 million in the last

year. They have also diversified their asset portfolio while maintain their quality and promoting

values. This has also been echoed today by their respected shareholders. 2009 was an

exceptionally challenging year for the financial sector in Bangladesh. Yet, they have closed the

year with stellar performance.

Fig 1: Total asset growth of BRAC Bank Ltd

At first we start with the Total Asset and Liabilities of the Bank. Total asset of the bank rose to

BDT 94,582 million in 2009 from BDT 72,442 million in 2008 registering a growth of 31%.


Chapter-6

Significant increase in assets documented in loans and advances, investments, fixed assets and

cash assets maintained by the Bank.

Total liabilities at 31december 2009 increased by 29% to BDT 86,431 million from 67,004

million at 31december 2008. Significant increases in liabilities documented in deposits and other

liabilities.

Consumer Banking:

BRAC Bank Ltd’s consumer banking division has already made its mark as a differentiator. This

division strives to bring international quality best practices in Bangladesh by being different in

the fields of Branch Banking, Retail Lending, Liability & Wealth Management, Cards and

Alternate Banking.

Retail Banking:

BRAC Bank Ltd’s customer deposits of the bank grew by 30% in 2009. The bank ended the year

Fig 2: Total Deposit growth of BRAC Bank Ltd

2009 with total customer deposits of BDT 75,220 million compared to BDT 58,007 million in

year 2008.Currently the Bank’s deposit mostly comprises of Fixed Deposits. Since, almost 49%

of total deposits are in the form of fixed deposits while only 33% are in the form of current

deposit.

During fiscal year 2009, bank focused on increasing proportion of low cost retail deposits in our

funding base. Their current and savings account deposits (CASA) as a percentage of total

deposits increased from 20% on December 31, 2008 to 41% on December 31,2009. This has

been contributed by a net CASA growth of BDT 9.2 million.


Fig 3: Total Deposit mix of BRAC Bank Ltd.

In 2009, Bank launched a new savings product “Triple Benefit Saving Account” and experienced

a whooping TK.7.3 million net growth in this single product. This product offered interest rate as

high as 8% with no account related or debit card related fees.

Bank also launched a new current product “Current Plus”, which empowered the customers to

execute their transactions freely without worrying about any charges.

Retail Lending:

Retail lending business requires a high level of credit and analytical skills and strong operations

process backed by technology. BRAC Bank’s retail strategy is centered on a wide distribution

network comprises branches, dedicated sales forces and dealers and real estate developer

relationships. A comprehensive and competitive product suite, technology enabled back office

process a robust credit and analytical frame work. During fiscal 2009 Bank focused on risk

containment in the retail business. They tightened their lending norms and moderate their

disbursement, especially in the unsecured retail loan segment.


Fig 4: Total Loan mix of BRAC Bank Ltd.

BRAC Bank was the larger provider of retail credit in Bangladesh with a total retail portfolio of

TK.11.3 billion as on December 31, constituting 18% of their total loans.

Fig 5: Total Loan disbursement of BRAC Bank Ltd in Last five years.

During the year they dealt with more than 7,100 new retail customers through a total

disbursement of TK.5.8 billion. Home loan has secured top position among the lending products

in terms of net growth. With gross disbursement volume of TK.1.3 billion of Home loan they

have establish relationship with 427 new customers.


Card services:

Card operation provides all the operational support & contributes to the rapid & noticeable

growth of Card Business in the industry over a span of just three years.

Fig 5: Total Credit Card Production of BRAC Bank Ltd.

Currently BRAC Bank Limited Credit Card is the best in the country, holding the second largest

market share. The \bank aims at being the market leader by 2015 in all respects, card operations

will make it successful with all efforts. Up to December 31st 2009 Credit Card portfolio is 63000

with 45000 active cards with BDT 141 crore outstanding.

Other Services:

In conjunction with expansion in branch network, Bank expanded its electronic channels, namely

ATM’s, internet banking etc., and migrate customer transaction channels. In 2009, over 60% of

all cash transactions were made through ATM’s. Bank increased their ATM network from 125

on December 31, 2008 to 177 ATM’s by December 31, 2009. BBL is the market leader in terms

of number of volumes of transactions though ATM’s. Their call centers have a total seating

capacity of approximately 21 service workstations. On an average they receive 100,000 guest

queries in a month in phone banking.

During the year the Bank launched internet banking service enabling a wide range of banking

transactions using the internet. Their SMS push-pull service has been very popular among the

guests.With total subscription of over 200,000 guests, every month approximately 50,000 guests

are being served by SMS banking services.


SWOT Analysis

SWOT analysis is an important tool for evaluating the company’s Strengths, Weaknesses,

Opportunities and Threats. It helps the organization to identify how to evaluate its performance

and scan the macro environment, which in turn would help organization to navigate in the

turbulent ocean of competition.

Strengths:

1. BRAC bank has already established a favorable reputation in the banking industry of the

country particularly among the new comers. Within a period of 9 years, BBL has already

established a firm footing in the banking sector having tremendous growth in the profits

and deposits.

2. BBL has been founded by a group of eminent entrepreneurs of the country having

adequate financial strength.

3. The top management of the bank is also major strength for the BBL has contributed

heavily towards the growth and development of the bank.

4. BBL has adequate physical facilities and equipments to provide better services to the

customers.

5. Impressive branches create a positive image in the minds of the potential customers and

many people get attracted to the bank.

6. BBL has an interactive corporate culture. Unlike other local organization, BBL’s work

environment is very friendly, interactive and informal.

7. At BBL’s mid level and lower level management, there are often team works. Many jobs

are performed in groups of two or three in order to reduce the burden of the workload and

enhance the process of completion of the job.


SWOT AnalysisSWOT Analysis

Internal FactorInternal Factor External Factor External Factor

OpportunitiesOpportunities ThreatsThreatsStrengthsStrengths WeaknessesWeaknesses

Weaknesses:

1. Advertising and promotion of products is a major setback for BBL and one of its weakest

areas.

2. BRAC is one of the largest NGO of the world and it is operating its activities in

Bangladesh. BRAC bank is not a NGO bank but many people of them country consider it

as a NGO bank like Grameen bank which is not correct.

3. The remuneration package for the entry and the mid level management is considerably

low. Under the existing low payment structure, it will be very difficult to attract and

retain higher educated employees.

4. Absence of Islamic Banking System.

Opportunities:

1. BBL can pursue a diversification strategy in expanding its current line of business. The

management can consider options of starting merchant banking or diversify in to leasing

and insurance. By expanding their business portfolio, BBL can reduce their business risk.

2. In this competitive environment BBL must expand its product line to enhance its

sustainable competitive advantage. As a part of its product line proliferation, BBL can

introduce the following products.

3. BBL has a global market reputation.

Threats:

1. The emergence of multinational banks and their rapid expansion poses a potential threat

to the new growing private banks. Moreover, the already existing foreign banks such as

Standard Chartered, HSBC, are now pursuing an aggressive branch expansion strategy.

2. The upcoming private local banks can also pose a threat to the existing private

commercial banks like BBL.

3. The contemporary banks of BBL such as Dhaka bank, Prime bank, City Bank, UCBL,

Trust Bank and Dutch Bangla are its major rivals. Prime bank and other banks are

carrying out aggressive campaign to attract lucrative clients as well as big time

depositors.

4. Political unrest is another threat for the continuous growth of the Bank.

5. Government Policies are not in well favor of private bank.


Findings

By analyzing Consumer Banking system of BBL I have find out following issues-

Positive Findings:

1. BBL always tries to satisfy their customers through quality services.

2. BBL tries to provide quick services to the customers and try to solve problems of the

customers as soon as possible.

3. All the employees of the customer service have excellent interpersonal and

communicational skills.

4. Customers of the bank pursue a great attitude about the bank.

5. BBL provides excellent banking environment for both the customer and the bankers.

Negative Findings:

1. BBL customer service charges are much higher than other commercial banks in

Bangladesh. This charges system should be changed. Otherwise it can be threat for the

bank in future.

2. The remuneration package dissatisfies the bankers because it is very poor for their hard

work.

3. Phone banking system found busy in many time.

4. Absence of Islamic Banking System.

5. There are some hidden costs in products or services which cause the customer sometimes

in difficulty and sometimes the officers are not telling it to the customers properly which

in the long run can hamper their business. Officers should clear every paisa about the

costing to the customer clearly.

6. CSO dealing with retail products have to perform dual duties- Service to customers and

fund collection. So that they can’t concentrate on customer service properly. As a result

sometimes there service hampered as they always think how they can fulfill the target.


Chapter-7

Recommendations

However the satisfaction level of BRAC Bank is good enough. But some customers have

expressed their dissatisfaction about the BRAC bank in various aspects. It has a profound effect

on the overall satisfaction level of the bank.

I have to make some recommendations based on the findings that I have got from my research. I

hope the recommendation will help the bank to take necessary steps in order to increase the

satisfaction level of customers of BRAC Bank. The following are some recommendations for the

company:

1. Bank has to satisfy its customer at any cost. Even if the customer is wrong in that case

also, even then the officers should not make any rough behave to the customer. Because

customers are everything for a bank. The employee of BBL should show a sincere

interest in solving the customer’s problem.

2. For maintaining the relationship with the customer, employees have to give all types of

support to the customers.

3. Officials should be more cooperative with the clients.

4. Officials should be faster during transaction.

5. There are a lot of banks now in Bangladesh and customers now have lots of options. So

a bank should do everything possible for them to do to retain its customer.

6. Bank should be more innovative and diversified in its services.

7. Some customers said that the service charges of BRAC bank are comparatively higher

than other bank so it should be reduced if possible. Otherwise it can be a threat for the

bank in future.

8. Facilities of equipment like PC system should be improved so that every employee

could work properly in time.

9. The code of conduct for the officials should be strictly maintained.

10. Token system/Queue system should be introduced in the customer service to minimize

the rush and for easy service giving by the officer.

11. Mobile phone use of the customers should not be allowed inside the Bank like some

other multinational Banks.


12. Sometime it is seen that some people are sitting in the waiting bench for hours without

any cause. So security system should be more strict in the Bank.

Conclusion

Today banking business becomes more competitive than before. Now customers are more aware

and become smart to compare between the banks. And then choose the most convenient bank for

them for dealing with their hard earned cash and business finance.

Considering the fast moving and altering business era in the world each and every business

organizations need to upgrade their ways of business to keep pace in the changing situation. It is

very true that the most of the customers do not hesitate to term BRAC Bank better than other

banks. But it should also be considered that the customers have very few choices of banks with

which they can actually compare the Consumer Banking services of BRAC Bank. The bank has

successfully made a positive contribution to the economy of Bangladesh with in very short

period of time. Its profit is gradually increasing. The local banks have recently focused their

attention to customer service, satisfaction regarding deposit-banking services. Moreover there are

a good number of private banks that are into the competition. Therefore it is better for BRAC

Bank not to let the situation be worst and should emphasize on serving customers effectively and

efficiently to ensure better services.

By the grace of Almighty ALLAH, My study finally ended up with considerable degree of

success. I consider it to be a success, because I carried out a lot of invaluable experiences. It

helped me to identify the best way of applying the theoretical knowledge to practical field, to

make adjustments, alteration in order to be in line with practice.

As per working experience concern; it cannot be spelled out within few words. It really gave me

tremendous experience of working in a congenial atmosphere. Experience with BRAC Bank Ltd.

proves that putting corporate interest before individual interest and a sense of responsibility can

lead an organization to its desired goal.
