Internship report on BRAC Bank Ltd.

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(1)‘INTERNSHIP REPORT’ For BBA Certificate Program ON OVERALL FINANCIAL PERFORMANCE OF BRAC BANK LIMITED. PREPARED FOR DR. SHYAMAPADA BISWAS ASSOCIATE PROFESSOR SCHOOL OF BUSINESS. PREPARED BY MD. LIKHON ID: 08.01.02.005 21ST BATCH BBA SCHOOL OF BUSINESS. DATE OF SUBMISSION 05 AUGUST, 2012. AHSANULLAH UNIVERSITY OF SCIENCE & TECHNOLOGY.

(2) Letter of Transmittal 5th August, 2012 Dr. Shyamapada Biswas Associate Professor, School of Business Ahsanullah University of Science & Technology. Subject: Submission of Internship Report Dear Sir, This is my pleasure to present my internship report entitled “Internship Report On Overall Financial Performance of BRAC Bank Limited.” I have conducted my internship program in BRAC Bank Limited, Rampura Branch, 369 Khan Tower, Rampura, Dhaka – 1219, under your close supervision.. I believe that knowledge and experience I gathered during the internship period will be helpful in my future professional life. I will be grateful to you if you accept the report. I will be available for defense on this report any time.. Your support in this regard will be highly appreciated. Thanking you. Sincerely yours’. ____________. Md. Likhon ID – 080102005 B.B.A. 21st Batch School of Business, AUST. Overall Financial Performance of BRAC Bank Limited. I |P a g e.

(3) Letter of Gratitude 5th August, 2012. Dr. Shyamapada Biswas Associate Professor, School of Business Ahsanullah University of Science & Technology Love Road, Tejgaon, Dhaka.. Subject: To thank for supervising the Internship report and its Submission.. Sir, Thank you for helping me as Term Paper supervisor. Your advice makes my Report effective and more representatives to study the case.. I am really grateful to you for your kind supervision in preparing this report. Thanks again for your nice concept and effective guidelines.. Yours truly,. ____________ Md. Likhon ID – 080102005. Overall Financial Performance of BRAC Bank Limited. II |P a g e.

(4) Acknowledgement Completion of this report has made me grateful to a number of persons. First of all I would like to acknowledge my supervisor and teacher Dr. Shyamapada Biswas not only for giving the opportunity to prepare the report but also for providing me the opportunity to improve the report by extending the submission deadline on this semester. She was also available when I needed him for help, suggestions and guidelines. I am also grateful to Ms. Tahniyat Ahmed Karim, Head of Human Resources, BRAC Bank Ltd. for giving me the valuable opportunity to do my internship program and supporting me with knowledge and resources. I am also grateful to the entire Team Rampura branch of BRAC Bank Ltd. as they have always been there for me when I needed them the most. Their active participation to all my questions, queries during my internship has made this journey a true success. I would like to name here A.K.M Needar Hasan (Branch Manager), Aloka Aich (Customer Service. Manager),. Md. Faisal Mehbub (Associate. Relationship Manager), Asmary Sultana (Branch Sales & Service Officer), Md. Abdullah Al Mamun (Branch Sales & Service Officer), Moksedul Islam (Branch Sales & Service Officer), Tarek Vai, Ishrat Apa & Riajul Vai(BSSO), thanks to all of them for providing valuable suggestions and information in preparing this report. It was my privilege and I am truly honored working with such a wonderful team.. Overall Financial Performance of BRAC Bank Limited. III |P a g e.

(5) Preface First of all I would like to be grateful to the Almighty Allah, the merciful & the benevolent that has enabled me to complete this report.. The internship, a part of the academic discipline, for the BBA students has been designed to acquire practical knowledge. It is expected that the integration of knowledge in theories and practices will enable us to become effective. Through this program, I have got the chance to acquire some experience in a reputed bank, which is expected to enlighten my career.. It’s really a great opportunity to have the chance to make a report on various aspects of the bank. I have chosen “Overall Financial Performance of BRAC Bank Limited” as subject matter for my internship program due to personal curiosity & interest to achieve some practical knowledge about this sector. Besides this banking activity is much important for the economic development, without bank, it’s difficult to run financial activities or operation. So its normally claims a research on it for better understanding at present.. Finally, it is my earnest & sincere hope that this report on “Overall Financial Performance of BRAC Bank Limited” would be found useful by the individuals. I tried to make the report effective, informative and representative.. Overall Financial Performance of BRAC Bank Limited. IV |P a g e.

(6) Executive Summary I have prepared my internship report based on the three month long internship program that I had successfully completed in BRAC Bank Limited under customer service of Rampura Branch from 15.04.2012 to 15.07.2012 as a requirement of my BBA program on School of Business, Ahsanullah University of Science & Technology. The topic mostly is about the overall financial performance of BRAC Bank Ltd. Besides I describe about various products & services and remittance related much information present in this report. Overall remittance operation and procedure show in this report. I also included general banking operation of BRAC Bank Limited. I have worked in Customer Service of BRAC Bank Limited and I observed that how the employees satisfy customers needs and besides I collected data for report. The first part of the report different aspect of the report like methodology, origin, objective etc of the report. Chapter 2 is the organization part, in this section, the detailed background of BRAC Bank Ltd has been provided. This section looks into the different aspects of the bank starting from the mission, vision to the business and functional units of BRAC Bank Ltd. The next chapter is the job part. In this section, I have put forward my job description as an Intern in Rampura Branch and The different tasks that has been assigned to me, how the task were done etc. The next part is the most important part of the report, this is the main section. Here, according to the title of the report, the overall financial performance of BRAC Bank Ltd has been provided. Ratio analysis of BRAC Bank’s financial statement for the year 2004 to 2011 has been provided. Along with it a SWOT Analysis has been done to look into the competitive edge of the bank. Finally, in the last chapter findings, recommendation and conclusion has been done.. Overall Financial Performance of BRAC Bank Limited. V |P a g e.

(7) ACRONYMS PO. = Payment Order. DD. = Demand Draft. MT. = Mail Transfer. FD. =Fixed Deposit. STD. = Short Term Deposit. SOD. = Security Overdraft. CC. = Cash Credit. ARM. = Associate Relationship Manager. BSSO. = Branch Sales and Service Officer. CSM. = Customer Service Officer. BBL. = BRAC Bank Limited. CASA. = Current Account & Saving Account. CSR. =Corporate Social Responsibility. IFC. =International Finance Corporation. KYC. =Know Your Customer. NCS. =Nation Wide Collection System. CCSO. = Cash and Client Service Officer. RM. = Relationship Manager. ROA. = Return On Assets. ROE. = Return On Equity. ROI. =Return On Investment. SRM. = Senior Relationship Manager. SWOT. = Strengths, Weaknesses, Opportunities and Threats.. TD. = Term Deposit. Overall Financial Performance of BRAC Bank Limited. VI |P a g e.

(8) TABLE OF CONTENTS LETTER OF TRANSMITTAL……………………………………………………I ACKNOWLEDGEMENT……………………………………………..…………………………II PREFACE…………………………………………………………………………………………..IV EXECUTIVE SUMMARY…………………………….………………………………………….V ACRONYMS……………………………………………………………….………………………VI. CHAPTER: 1 INTRODUCTION...............................................................................................3 1.1. BACKGROUND OF THE REPORT .............................................................................................. 5. 1.2. OBJECTIVE OF THE REPORT..................................................................................................... 5. 1.3. IMPORTANCE OF THE REPORT................................................................................................ 6. 1.4. METHODOLOGY OF THE STUDY.............................................................................................. 6. 1.5. LIMITATIONS OF THE REPORT................................................................................................. 7. CHAPTER: 2 A BRIEF OVERVIEW OF BBL........................................................................8 2.1. HISTORICAL BACKGROUND...................................................................................................10. 2.2. VISION, MISSION, GOAL, AND CORE VALUES .......................................................................12. 2.3. CORPORATE INFORMATION AT A GLANCE ...........................................................................14. 2.4. ORGANOGRAM OF BRAC BANK LIMITED..............................................................................15. 2.5. INFORMATION TECHNOLOGY ...............................................................................................17. 2.6. PRODUCTS & SERVICES OF BRAC BANK LIMITED..................................................................17. 2.7. CASH FLOW STATEMENT ......................................................................................................28. 2.8. PROFIT AND LOSS ACCOUNT.................................................................................................29. 2.9. BALANCE SHEET ....................................................................................................................30. 2.10. GRAPHICAL SITUATION OF BBL.............................................................................................31. CHAPTER: 3 MY INTERNSHIP EXPERIENCE ..................................................................35 3.1. Experience Regarding Personal Improvement .....................................................................37. 3.2. BRANCH RELATED EXPERIENCE.............................................................................................39. Overall Financial Performance of BRAC Bank Limited. 1|P a g e.

(9) 3.3. PRACTICAL WORKING EXPERIENCE.......................................................................................42. CHAPTER: 4 OVERALL FINANCIAL PERFORMANCE ANALYSIS.............................58 4.2. Graphical Analysis of Financial Elements..............................................................................61. 4.3. Correlation and Regression of Financial Elements ...............................................................65. 4.4. RATIO ANALYSIS ....................................................................................................................74. 4.5. SWOT ANALYSIS ....................................................................................................................78. 4.6. SHARE HOLDING STRUCTURE ...............................................................................................80. CHAPTER: 5 FINDINGS, RECOMMENDATION AND CONCLUSION ..........................81 5.1. FINDINGS...............................................................................................................................83. 5.2. RECOMMENDATION .............................................................................................................84. 5.3. CONCLUSION.........................................................................................................................85. BIBLIOGRAPHY ..............................................................................................86. Overall Financial Performance of BRAC Bank Limited. 2|P a g e.

(10) CHAPTER – I. INTRODUCTION. Overall Financial Performance of BRAC Bank Limited. 3|P a g e.

(11) CHAPTER 1 Chapter: Introduction 1.1 Background of the report 1.2 Objective of the report 1.3 Importance of the report 1.4 Methodology of the study 1.5 Limitations of the report. Overall Financial Performance of BRAC Bank Limited. 4|P a g e.

(12) 1.1 BACKGROUND OF THE REPORT Without any application, knowledge is valueless. Now a day’s everything is so practical. In a professional life theoretical knowledge is base and practical knowledge is a key to success. Highly theoretical knowledge is meaningless if we don’t use it in our practical life.. Bachelor of Business Administration (BBA) is a professional program. It is designed with an excellent combination of practical and theoretical aspects. This internship program is very important for a BBA student. This program Helps BBA students get an initial experience about the practical field. As a student of BBA, with the partial fulfillment of the course requirement, I was assigned to pursue internship in BBL, Rampura Branch, Dhaka.. I have used my knowledge properly on banking system. After observing thoroughly, I have prepared this report on the basis of my findings and observation relating to the topic.. 1.2 OBJECTIVE OF THE REPORT The main purpose for making this report is to know and evaluate the Overall Banking System and Performance of BRAC Bank Limited. The specific objective may be show as under: To know the historical background of BBL To know the management of the BBL To know the functions of the BBL To know the foreign remittance of the Bank To observe the general activities of the bank To find out problems of the Bank To suggest necessary measures To acquire knowledge about the Overall Banking System To focus on the overall performance of the Bank. Overall Financial Performance of BRAC Bank Limited. 5|P a g e.

(13) 1.3 IMPORTANCE OF THE REPORT For any business school student, only curricular activities are not enough for handling the real business situation. So it is an important opportunity for the students to know about the field of business through the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. On the basis of working experience for this period I have prepared this report and I have tried my best to relate the theoretical knowledge with the practical work situation.. 1.4 METHODOLOGY OF THE STUDY a. Study design The study was fully descriptive in nature. The study was conducted using the participatory method. To know the in-depth information, the topic was discussed with the expert professionals related to bank for several times and review of record of BRAC Bank Limited and other related secondary information. The purpose was to get an idea about the whole activities of the branch where I did my practical orientation. Statistical data and other relevant information were gathered from secondary sources including several journals and booklets.. b. Data collection method Data have been collected from two sources. These are as under: 1. Primary source 2. Secondary source. Overall Financial Performance of BRAC Bank Limited. 6|P a g e.

(14) 1) The primary sources of data include the followings: a. Face to face conversation with the bank officers and staffs b. Direct conversation with the clients c. Practical deskwork. 2) The secondary sources of data include as under: a. b. c. d.. Annual report of BRAC Bank Limited. Different publications of BRAC Bank Limited. Unpublished data received from the Branch. Different text books.. Different circulars send by Head Office of BRAC Bank Limited and Bangladesh Bank.. c. Data Analysis: Data is analyzed by SPSS. In SPSS I imply various models like correlation, Regression.. 1.5 LIMITATIONS OF THE REPORT The main constraint of the study was insufficiency of information that was highly required for the study. Since the bank officials are very busy with their activities, as a result it was thought to have proper knowledge as was required for the study. The duration was not enough to cover all aspects of banking. There some information which are confidential for collecting the data. So, some data could not been collected for confidentiality or secrecy of management. The data and information related with the topic was not easily available because of confidentiality of the concern.. Overall Financial Performance of BRAC Bank Limited. 7|P a g e.

(15) CHAPTER – II. A BRIEF OVERVIEW OF BBL. Overall Financial Performance of BRAC Bank Limited. 8|P a g e.

(16) CHAPTER 2 CHAPTER: A BRIEF OVERVIEW OF BBL 2.1 Historical Background 2.2 Vision, Mission & Objectives 2.3 ORGANOGRAM of BBL 2.4 Information Technology 2.5 Products & Services of BBL 2.6 Corporate Information at a Glance 2.7 Cash Flow Statement 2.8 Profit and Loss Account 2.9 Balance Sheet 2.10 Graphical Situation of BBL. Overall Financial Performance of BRAC Bank Limited. 9|P a g e.

(17) 2.1 HISTORICAL BACKGROUND 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 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. BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore Cap International, has been the fastest growing Bank in Bangladesh for the last three consecutive years. In the recent past the bank has gone public with price of shares reaching impressive heights, further showing promising future. BRAC Bank, a fully operational Commercial Bank, focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 2200 crore in loans to nearly 50,000 small and medium entrepreneurs in 2007. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank's footprint has grown to 151 branches, more than 450 SME unit offices and 300 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through 2006. In 2005, BRAC Bank had a $178 million portfolio consisting of around 21,000 loans with an average loan size of $8,000. It has around 400 regionally-placed loan processing units offering services in the heart of rural. Overall Financial Performance of BRAC Bank Limited. 10|P a g e.

(18) and urban communities and employs over 700 business loan officers – around 60% of total staff. In addition to small business lending, BRAC Bank has fast growing 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.. International Finance Corporation BBL has important international shareholdings apart from BRAC: IFC and ShoreCap. International Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas representatives, IFC helps local financial institutions find profitable ways to target small and medium sized companies. Funding comes from the Asian Development Bank, Canada, the European Commission, the Netherlands, Norway, the United Kingdom and IFC itself. IFC is a 5.36% shareholder in BBL. A new assistance program signed in August 2011 aims to double the bank’s number of small and medium enterprise clients in 18 months through campaigns to target women entrepreneurs and rural clients, introduce new products and train branch managers.. Shore Cap International Ltd Another international institutional investor Shore Cap International Ltd. is an international private non-profit, equity company seeking to invest in small business banks and regulated micro finance institutions in countries with developing and transitional economies. Shore Cap typically invests between $500,000 and $2 million for an ownership position of 10-25% of a company. As a minority shareholder, Shore Cap seeks financial institutions with a strong, experienced management team and a committed set of local developmentminded investors. Shore Cap currently owns 0.86% of BBL’s shareholdings. Overall Financial Performance of BRAC Bank Limited. 11|P a g e.

(19) 2.2. VISION, MISSION, GOAL, AND CORE VALUES. CORPORATE VISION Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh”.. CORPORATE MISSION  Sustained growth in Small & Medium Enterprise sector  Continuous low-cost deposit Growth with controlled growth in retail assets.  Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors.  Continuous endeavor to increase non-funded income  Keep our debt charges at 2% to maintain a steady profitable growth  Achieve efficient synergies between the bank’s branches, SME unit offices and BRAC field offices for delivery of remittance and Bank’s other products and services  Manage various lines of business in a full controlled environment with no compromise on service quality  Keep a divers, far flung team fully controlled environment with no compromise on service quality  Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality. Overall Financial Performance of BRAC Bank Limited. 12|P a g e.

(20) GOAL BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprise 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.. CORE VALUES Our Strength emanates from our owner - BRAC. This means, we will hold the following values and will be guided by BRAC as we do our work.  Value the fact that one is a member of the BRAC family  Creating an honest, open and enabling environment  Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit  Strive for profit & sound growth  Work as team to serve the best interest of our owners  Relentless in pursuit of business innovation and improvement  Value and respect people and make decisions based on merit  Base recognition and reward on performance  Responsible, trustworthy and law-abiding in all that we do.. Overall Financial Performance of BRAC Bank Limited. 13|P a g e.

(21) 2.3 CORPORATE INFORMATION AT A GLANCE. Registered Name. : BRAC Bank Limited. Slogan. : Committing Human Capital to Our growing economy. Date of Incorporation. : 1999. Inauguration of the first branch : 4th July, 2001 Head Office. : 1, Gulshan Avenue, Gulshan-1, Dhaka-1212. Official Logo. :. Chairman. : Mr. Muhammad A. (Rumee) Ali. Managing director & CEO. : Mr. Syed Mahbubur Rahman. Board of directors. :7. Number of Branches. : 151. Number of Employees. : 7,000 (Approximately). Authorized Capital. : 12,000 Million. Paid up Capital. : 3,212 Million. Services provided. : Deposit scheme, SME loan, credit facility, and Foreign exchange services.. Banking Operating System. : Both conventional and foreign exchange system. Technology Used. : Member of SWIFT, Enterprise Resource Planning (ERP), online Banking, and UNIX based software.. E-mail. : enquiry@bracbank.com. Website. : www.bracbank.com. SWIFT. : BRAKBDDH. Overall Financial Performance of BRAC Bank Limited. 14|P a g e.

(22) 2.4. ORGANOGRAM OF BRAC BANK LIMITED. BOARD OF DIRECTORS. Mr. Muhammad A. (Rumee) Ali Chairman. Mr. Shib Narayan Kairy Director. Mr. Quazi Md.Shariful Ala Director. Ms. Nihad Kabir Director (Independent). Dr. Hafiz G.A. Siddiqi Director. Ms. Tamara Hasan Abed Director. Mr. Syed Mahbubur Rahman Managing Director and CEO. Overall Financial Performance of BRAC Bank Limited. 15|P a g e.

(23) MANAGEMENT COMMITTEE. Mr. Syed Mahbubur Rahman Managing Director & CEO. Mr. Mohammad Mamdudur Rashid Deputy Managing Director. Mr. Rais Uddin Ahmad Group Company Secretary, Head of Legal & Regulatory Affairs and CAMLCO. Mr. Nabil Mustafizur Rahman Chief Credit Officer. Mr. Nawed Iqbal Chief Technology Officer. Mr. Syed Faridul Islam Head of Risk Management. Mr. Firoz Ahmed Khan Head of Retail Banking. Mr. Mahmoodun Nabi Chowdhury Head of Corporate Banking & Cash Management & Custodial Services. Ms. Tahniyat Ahmed Karim Head of Human Resources. Mr. Shah Alam Bhuiyan Head of Operations. Mr. Abdur Rahman Head of SME Banking. Mr. M. Sarwar Ahmed Head of Special Assets Management (SAM)-SME & Retail Banking. Mr. Zeeshan Kingshuk Huq Head of Corporate Affairs & Service Quality. Overall Financial Performance of BRAC Bank Limited. 16|P a g e.

(24) 2.5 INFORMATION TECHNOLOGY Banking operations of the branches have been computerized to minimize costs and risks and to optimize benefits and overall efficiency for improved services. The bank generates the relevant financial statements at the end of the day. The bank has installed Reuters screen for smooth operation of foreign currency dealings. The bank has also hosted a web page of its own. On-line banking has been introduced by the bank to provide better services to the customer. The bank has introduced ATM. The bank has installed SWIFT to facilitate quick international trade and payments arrangements. The bank has already introduced VISA and MASTER debit and credit cards.. 2.6 PRODUCTS & SERVICES OF BRAC BANK LIMITED BRAC Bank Ltd. is currently focusing on different areas of business activities. These are:  SME Banking  Retail Banking  Retail Distribution.  Non Funded Business and Secured Value Center  Alternate Delivery Channel  Unsecured Value Center  Liability  Service Quality/Business Intelligence  Collections  Cross Selling  Regional Distribution Overall Financial Performance of BRAC Bank Limited. 17|P a g e.

(25)  Corporate Banking  Probashi Banking  Cards  Treasury & financial institution  Marketing & corporate affairs The businesses directly related to customer service are briefly described in the following sections:. SME Banking: BRAC Bank considers the population of Bangladesh the most valuable resource of the country. According to BRAC Bank, after achieving liberation, the attainment of economic uplift should be our most important goal. Micro lenders are working here in the financial field, providing very small amount and on the other hand regular commercial banks have been providing bigger amount of loans to larger industries and trading organizations. But the small and medium entrepreneurs were overlooked. This missing middle group is the small but striving entrepreneurs, who because of lack of fund cannot pursue their financial uplift, as they have no property to provide as equity to the commercial banks. With this end in view-BRAC Bank was opened to serve these small but hard working entrepreneurs with double bottom line vision. As a socially responsible bank, BRAC Bank wants to see the emancipation of grass-roots level to their economic height and also to make profit by serving the interest of missing middle groups. 50% of BRAC Bank’s total portfolio usually collected from urban areas, are channeled to support these entrepreneurs who in future will become the potential strength of our economy. The Bank currently is the market leader in giving loans to Small and Overall Financial Performance of BRAC Bank Limited. 18|P a g e.

(26) Medium Entrepreneurs. It has been doing this for the last five years. Showing SME Network coverage in the figure below: SME products. Currently BRAC Bank is offering 13 SME packages. These are listed and briefly explained below:  Anonno Rin - “Anonno Rin” is a business loan designed to finance small scale trading, manufacturing and service ventures, especially to help small and medium entrepreneurs to meet their short-term cash flow shortages and bridge the fund-flow gaps.  Apurbo Rin – Apurbo is a loan facility for small and medium business. Apurbo loan has been designed and targeted for relatively bigger business units requiring loan above tk. 8 lacs to 30 lacs..  Pathshala Rin - “Pathshala Rin” is a loan designed to meet the needs of small and medium sized private educational institutions, such as kindergartens, schools and colleges etc.  Aroggo Rin - “Aroggo” is a loan allowed to various Health service Provider like private clinics, diagnostics centers and doctors' chambers. The product offers fixed assets purchase financing under equated Monthly Installments..  Digoon Rin - This is a double loan on clients’ deposits. With this, clients do not need to encash their savings rather they can take double amount of loan on their deposit for their business expansion.. Overall Financial Performance of BRAC Bank Limited. 19|P a g e.

(27)  Supplier Finance - SUPPLIER FINANCE is a loan facility for the enlisted Suppliers of various large retailers, marketing companies, distributors, exporters etc. This product’s main objective is to help various Suppliers to meet their short-term cash flow shortages or bridge the fund-flow gaps. Amount is minimum BDT 3 lac up to maximum BDT 30 lac..  Prothoma Rin - "PROTHOMA RIN" is a loan facility for small and medium sized business, which is operated by women entrepreneur. The product offers terminating loan facilities for the purpose of working capital finance and/or fixed assets purchase. Loan limit is from minimum BDT 3 lac up to maximum of BDT 9.5 lac.  BIZNESS Account - “Bizness Account” is an interest bearing current account for sole proprietorship business Entrepreneur. Opening balance required is only BDT-10, 000.00.  Cash Secured Loan - "Cash Secured Loan" is a loan facility for small and medium sized business. There are two types of loan facility in the product i.e. Secured Loan and Secured Overdraft. These facilities are fully secured by fixed deposit of BRAC Bank. Amount is minimum BDT 3 lac up to maximum BDT 30 lac.  BIZNESS Loan - Bizness loan is an equated monthly loan facility for all types of business who have healthy bank transactions for the purpose of working capital finance and/or fixed assets purchase. Loan limit is minimum BDT 10 lac to maximum of BDT 50 lac.. Overall Financial Performance of BRAC Bank Limited. 20|P a g e.

(28)  Proshar - "Proshar" is a loan facility for small & medium sized manufacturing business. The product offers loan facilities for working capital finance and/or fixed assets purchase.  Trade Plus - Trade plus is a composite facility for small & medium sized import-oriented businesses to meet their trade finance requirements..  Super Supply Loan - Super Supply Loan is a loan facility for Suppliers of. various. large. retailers,. marketing. companies,. manufacturing. companies and various corporate houses. This product’s main objective is to help various Suppliers to meet their financial requirements.. Retail Banking: There are retail banking products of three categories. One is Loan Products, second is Deposit Products and the other is Cards.. In Loan Products category there are eleven services/products facilitating clients’ demands. These are:. Salary Loan, NoW Loan, Car Loan, Teacher’s Loan, Study Loan, Travel Loan, Credit Card Loan, Top Up Loan, HighFlyer Loan, Secured Loan/ OD and Doctor’s Loan. Under Deposit Products category currently there are ten services/products in total. These are:. Overall Financial Performance of BRAC Bank Limited. 21|P a g e.

(29) Fixed Deposit, Interest First, Abiram Account, DPS, EZee Account, Savings Account, Short Term Deposit, Current Account, Salary Account and Step Up Fixed Deposit.. Under Cards category there are three types of cards products active. One is ATM Debit Cards, Co-Branded Cards and another is credit card. ATM Debit Cards facilitates money withdrawal of up to BDT 1, 00,000.00 per day. Also checking balance statements of ATM and POS (Point Of Sale) transactions. The Cards Department provides 24 hour customer support hotline to resolve queries and problems.. The Co-Branded Cards are from Aarong, ALICO and DIA Gold. The BRAC Bank Aarong ATM Card gives users 5% cash back facility from shopping in any Aarong outlets. The holder of BRAC Bank ALICO ATM Card can enjoy a special life insurance facility with insurance coverage of upto BDT 200,000.00. And BRAC Bank DIA Gold ATM card holder will enjoy a special cash back and cash discount feature. This feature is 10% discount from any diamond product bought and 8% discount on making charge of any gold products bought from DIA Gold.. In the credit card there are three types of card. These are Platinum, Universal gold and universal classic card. And all cards are dual currency card.. Overall Financial Performance of BRAC Bank Limited. 22|P a g e.

(30) Corporate Banking: Corporate Banking section has three types of coverage currently. These are:. 1. Corporate Loan Products 2. Trade Financing 3. Corporate Cash Management Corporate Loan Products is offering six services at the moment. The services are listed and described in the following section:. Corporate Loan Products. Overdraft – This is an on-demand credit facility designed to meet day-to-day operational activities of the business, including purchase of raw materials and expenses.. Term Loan – Short Term Loan/Revolving Loan: This scheme is to meet different short-term fund requirements of the client. Payment of duty, Tax, VAT and other expenses related to the release of goods from customs through pay orders in the name of customs authority or Bangladesh Bank cheque is payable through this scheme.. Lease Finance – One of the more convenient long-term sources of acquiring capital machinery and equipment. The client is given an opportunity to have exclusive rights to use an asset, for an agreed period of time, against payment of rent.. Loan Against Trust Receipt (LATR) – This is advancement against a Trust Receipt provided to the client when the documents covering an import shipment are given without payment. Under this system, the client will hold the Overall Financial Performance of BRAC Bank Limited. 23|P a g e.

(31) goods of their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid. Work Order Finance – BRAC Bank provides Work Order finance facility for its valued clients. Through this arrangement, clients can avail loan facilities against valid Work Orders up to a certain proportion.. Medium Enterprise - The products offered under this sort of financing are versatile in nature and each product is tailored according to the need of the borrower, under certain parameters. The range of organizations this sort of financing caters to include proprietorship concerns, private limited companies, educational institutions as well as NGOs. The purpose of this unit is to serve medium enterprises having facility requirements like a large corporate in nature, but smaller in volumes. The facilities may range from a single-funded or non-funded limit to a composite credit facility that includes various corporate products. The Bank believes that the emerging medium enterprise of today is tomorrow’s large corporate that will facilitate the true growth of the nation.. Trade Finance: Letter of Credit (LC): This facility is related to import or local purchase of different items. It is also provided for the import and export of goods (such as raw materials, machinery, equipment, any trading item).. Overall Financial Performance of BRAC Bank Limited. 24|P a g e.

(32) Letter of Guarantee (LG): To meet different contractual requirement such as participating in Bid, Performance Guarantee and Advance Payment guarantee for different contractual requirements.. Corporate Cash Management. NCS – BRAC Bank will collect clients’ bills through their Bills Pay Machines in the strategic locations of the city and also at the correspondent branches, where the BRAC Bank branches are not available and at the booths.. PTS – PTS will allow clients to disburse all kinds of payments anywhere in the country through BRAC Bank’s own branch network in Dhaka, Chittagong, Sylhet, Savar, Feni and the partner bank branches all over the country.. Advantages to Employers – BRAC Bank provides services such as Salary Upload, Multi-Location Salary, payroll management, MIS on payroll etc. Salary Upload facility requires a consolidated cheque of the total salary amount and a break-up of the disbursements to the employees in soft and hard copy format, BRAC Bank will do the rest. Multi-Location Salary features salary disbursal in multiple locations within BRAC Bank network. Payroll MIS creates standard reports for corporate clients with neatness and conciseness.. Advantages to Employees – Along with all other Retail Banking services, employees can avail 24 Hour Banking through ATMs, Online Banking, Extended Banking Hours till 8:00 PM except for Thursdays and Fridays and Payday Overdraft on request for emergency situations (this is adjusted with the employee’s following month’s salary).. Overall Financial Performance of BRAC Bank Limited. 25|P a g e.

(33) Cash Management Services – BRAC Bank's national Collection Services (NCS) is designed to assist corporate with nationwide collection requirements by providing faster funds availability in a cost- effective manner. Cash Collection Services: Through BRAC Bank Cash Collection Services they collect cash directly from clients offices/business premises. The whole process is arranged with executive logistic services.. Drop Box Facility: On request, BRAC Bank can install Drop Box at customer’s office which can be used for depositing cheques or any instruction. Their representative will visit client’s office and clear the box every day.. Probashi Banking. Our nation’s workforce who are away from their families, relatives, friend and above all, from breathing the air of our country, working abroad for the prosperity of their lives and the nation in the long run while sacrificing a lot. BRAC Bank, through Probashi Banking services, is facilitating the banking needs of remitters. Currently BRAC Bank is providing six services for remitters under Probashi Banking. These products/services are described below:. Probashi Current Account – It is ideal for Probashi Bangladeshis who do not wish to earn interest due to religious reasons. This account also comes with cheque book and ATM card and is ideal for regular transaction.. Probashi Savings Account – This account provides interest which is paid in June and December of each year. This account comes with a cheque book and ATM Card and is ideal for Probashi Bangladeshis who want to save. Accounts are maintained in Taka.. Overall Financial Performance of BRAC Bank Limited. 26|P a g e.

(34) Probashi DPS – Is a savings scheme specially designed for the Probashi clients. This service requires monthly installment of minimum Tk. 500.00 and any multiples. Provides a savings account with a personalized cheque book, earnings remitted to savings account will be automatically transferred on the due dates and loans are provided against 90% of deposited amount. Monthly Installment. Amount after maturity 4 years. 7 years. 11 years. 14 years. 500. 28,667. 58,650. 116,603. 179,550. 1000. 57,334. 117,300. 233,207. 359,101. Probashi Fixed Deposit – A fixed deposit account allows remitters to deposit their money for a set-period of time, thereby earning them a higher rate of interest in return. Fixed Deposits can be made from 3 months to 3 years. Interest is paid on the maturity at a very attractive rate. Accounts are maintained in Taka. Probashi Abiram – Probashi Abiram is a Fixed Deposit which is ideal for Probashies who want to get a return every month. If one has sufficient funds, this can be made into a fixed deposit from 1 year to 3 years and interest will be paid every month on their Savings Account automatically. This is ideal for customers who want to pay their DPS installments. Accounts are maintained in Taka. Probashi Shubidha (NRB Beneficiary) Account – This is a specialized account for Non-Resident Bangladeshis where the remitter can open an account for the Beneficiary. The beneficiary can then avail all the services offered by BRAC Bank such as: SMS Banking, Phone Banking, Internet Banking etc. When the beneficiary’s account is setup, the Remitter just requires the account number, and amount of money to be sent to make a safe, fast and efficient transaction. Transaction is completed within 6 hours of receiving instructions. Overall Financial Performance of BRAC Bank Limited. 27|P a g e.

(35) 2.7 CASH FLOW STATEMENT Cash flow statement for the year ended December 31, 2011. Overall Financial Performance of BRAC Bank Limited. 28 |P a g e.

(36) 2.8 PROFIT AND LOSS ACCOUNT Profit and Loss Account for the year ended December 31,2011. Overall Financial Performance of BRAC Bank Limited. 29 |P a g e.

(37) 2.9 BALANCE SHEET. Balance Sheet As on December 31, 2011. Overall Financial Performance of BRAC Bank Limited. 30 |P a g e.

(38) 2.10 GRAPHICAL SITUATION OF BBL. Overall Financial Performance of BRAC Bank Limited. 31 |P a g e.

(39) Overall Financial Performance of BRAC Bank Limited. 32 |P a g e.



(42) CHAPTER – III. MY INTERNSHIP EXPERIENCE. Overall Financial Performance of BRAC Bank Limited. 35 |P a g e.

(43) CHAPTER 3 CHAPTER: MY INTERNSHIP EXPERIENCE 3.1 Experience regarding Personal Improvement 3.2 Branch Related Experience 3.3 Practical Working Experience. Overall Financial Performance of BRAC Bank Limited. 36 |P a g e.

(44) BRAC Bank Rampura Branch is one of the established branches of BRAC Bank. It has built up a very good customer base and performing really well. I got the opportunity to work as an intern in the Rampura branch and the tenure of my internship was 15th April to 15th July. Through this period I had many responsibilities and job roles. As I was an intern, my tasks were mostly related to general banking. I got to learn a lot of things about branch banking during this time. I got familiar with the work environment, I got to know how all the branches are centralized and about the process flow. I mainly had to report to the Branch Manager, but my supervisor was the Customer Service Manager (CSM) of the branch. I worked as a BSSO (Branch Sales & Service Officer), so I gathered knowledge regarding customer service & sales.. 3.1 Experience Regarding Personal Improvement. Time management Time management is the great virtue for each & every person. As a private university student, I spent only 4 to 5 hours in the university campus with gossiping, taking tea & snacks. But in the professional life like bank, each & every employee reach in the office not more than 9.30 am and go out from office not less than 6pm due to heavy working pressure. So, I also maintained my office time. They do their daily task in daily basis. I also helped them to make their task easier.. Direct communication with customer Today’s world is so challenging. Customer has more power due to wide range of switching option. I was little nervous in my first few days to communicate with customer. But in later, I was enjoying serving the customer.. Overall Financial Performance of BRAC Bank Limited. 37 |P a g e.

(45) Formal dress code I follow various celebrity like Salman Khan (bollywood), Tom cruise (Hollywood). It’s not related with my report. But, regarding formal dress code, I always wear jeans, T-shirt, casual shirt, snicker. I hardly wear formal pants, shirt and shoe. In the 3 months internship period I maintained the dress code regularly and I’m habituated with this now.. Neat & Clean I had long hair with little beard before starting my internship program. After starting internship, make my hair short, shaving in time, cutting nail, and polish shoe in time. I have wearied ironed and clean cloth regularly. First few days, I feel boring but now I am habituated of it.. Teamwork Theoretically I read what is team and teamwork but practically I did not have experience about it. In the professional life there’s exist team like Bangladesh cricket team. Each & every team member has some responsibilities and target to fill up. I observed it very closely and helped them to make their task easier.. Overall Financial Performance of BRAC Bank Limited. 38 |P a g e.

(46) 3.2 BRANCH RELATED EXPERIENCE Fig: Organogram of Rampura branch,BBL BSSO BSSO BSSO. CSM (morning). BSSO BSSO Teller BSSO Teller BSSO Teller HT. Branch. Teller. Manager RM (empty). ARM. Teller Teller Teller. CSM (evening). HT. Teller Teller. Overall Financial Performance of BRAC Bank Limited. 39 |P a g e.

(47) Floor Plan of Rampura Branch, BBL Fig: Floor plan of Rampura Branch,BBL. VAULT. (Elias MIah). st. 1 FLOOR. Credit Card (Lubna). Stairs. Customer. Service. (ALOKA AICH). Evening CSM. Morning CSM. CASH COUNTER. ENTRY ENTRY. Overall Financial Performance of BRAC Bank Limited. 40 |P a g e.

(48) KITCHEN WASH ROOM. LOCKER VAULT BSSO. BSSO. nd. 2 FLOOR. BRANCH MANAGER. Branch. BSSO. Manager. BSSO. Service Customer. BSSO. PREMIUM/SUPREME. COUNTER. STAIRS. FOREIGN. Waiting. REMITTANCE. Area. BSSO. ARM. BSSO. Overall Financial Performance of BRAC Bank Limited. 41 |P a g e.

(49) 3.3 PRACTICAL WORKING EXPERIENCE. 1. Account opening: Account Opened by in 2 ways a. System generated: when BSSO opened account by using computer system which is called system generated account. It has not included any debit card or cheque book. After opening this account, the debit card or cheque book will come to the branch. b. Welcome pack: Welcome pack means, the account already has created and debit card or cheque book included with the pack. Just name and nominee updated required for this account.. There are 3 types of account in BRAC Bank Limited, which are described belowA. Savings Accounts B. Current Accounts C. Term Deposits. A. Savings account: The bank provides savings account services for the case of its clients. It offers both personal and corporate savings accounts to its clients in every branch.. i. ii. iii. iv.. Triple benefit savings account Savings classic account Aporajita Account Future star account. Overall Financial Performance of BRAC Bank Limited. 42 |P a g e.

(50) Product. Purpose. Annual Fee. Interest Rate. Savings Classic. Savings Classic. BDT 600 + VAT at the. Up to 8.5% p.a., Account. is a local currency interest-. Triple Benefits Savings. time of account opening and on. bearing account with. anniversary of every. cheque book facility. following year. Triple Benefits Savings. No Annual Debit Card. Account. currency. is. a. local. interest-. Fees. bearing savings account with cheque. Aporajita Account is a. local currency interestbearing savings account available to all female. subject to. customers the. local. regulations and / or Banking practice. Future Star. Up to 8.5% depending on average balance. maintained in a month Interest payment: Monthly. book facility. Aporajita. Interest payment: Half yearly. No Annual Account. Maintenance Fee. BDT 600 + VAT at the. time of account. Up to 8.5% p.a. Interest payment: Monthly. opening and on. anniversary of every. following year. Future Star Account is. 4% to 8%depending on. school going children. maintained in a month to. designed to encourage develop savings habit and also to. create a future loyal. average balance. Interest payment: Yearly. customer base for the bank.. B. Current Account: It is purely a demand deposit account. As many withdrawals are allowed to the customers, it is suitable when funds are to be collected and money is to be paid away at frequent interval. Some current account offered for lower income people, who want to use modern banking. Overall Financial Performance of BRAC Bank Limited. 43 |P a g e.

(51) Current account is most suitable for private individuals, traders, merchants, importers and exporters, mill and factory owners, limited company etc.. i. ii. iii. iv. v.. Current classic Current plus Ezee account Salary account Campus account. Product. Purpose. Annual Fee. Interest Rate. Current Classic. It is a local currency non interest-bearing account with cheque book facility.. BDT 600 + VAT at the time of account opening and on anniversary of every following year BDT 500 + VAT will be charged. Non Interest bearing Acc.. Current Plus. It is a local currency non interest-bearing account with cheque book facility.. No Annual Account Maintenance Fee or Annual Debit Card Fees or any other upfront fees. Non Interest bearing Acc.. If customers do not maintain a HalfYearly Average balance of BDT 25,000, the account will be charged with BDT 500 + VAT every half year. Ezee. Campus Account. Ezee Account is a local currency interestbearing current account without cheque book facility.. No Annual Account Maintenance Fee. 4% p.a.. BDT 600 + VAT at the time of account opening and on anniversary of every year.. Interest payment: Half yearly. Campus Account is an interest-bearing current account exclusively offered for university students. No Annual Account Maintenance Fee. 4% p.a.. Overall Financial Performance of BRAC Bank Limited. Interest payment: Half yearly. 44 |P a g e.

(52) Salary account. It is a local currency interest bearing current account for employees of different Corporate Houses to disburse their monthly salaries. Employees of MNC/LLC/MID CORP/NGO/Large proprietorship/Partnership firm, other than foreign nationals are eligible to open this account.. No Annual Account Maintenance Fee in Salary Account and account can be opened with any amount. Annual VISA Debit Card Fees of BDT 300 + VAT will be charged and on anniversary of every following year. 4% p.a. Interest payment: Half yearly. C. Term Deposits: term deposit is very important for its contribution to the bank’s deposit creation process, because the highest amount of bank’s fund from its direct customers comes in the form of term deposit. For increasing the deposit base every commercial bank offers its customers various rates according to the amount of deposit.. i. ii. iii. iv. v. vi.. DPS Fixed deposit general Flexi DPS Interest first fixed deposit Freedom fixed deposit Abiram fixed deposit. Overall Financial Performance of BRAC Bank Limited. 45 |P a g e.

(53) Product. Minimum Opening. Fixed Deposit General. 50,000. Tenure. 1/3/6/12/24/36 (Months). Interest Rate Interest along with Principal is paid at. maturity.. Freedom. Fixed Deposit. 25,000. quarterly.. 6/12/24/36 (Months). Interest is paid It is a non-. transactional account that gives interest Abiram Fixed Deposit. Interest First. Fixed Deposits. Flexi. Deposits. Fixed. 1, 00,000. 1,00,000. 12/24/36 (Months). 3/6/12 (Months). quarterly to the link. account automatically. Interest is paid monthly.. Interest is paid in advance, at the. time of opening.. 500. 1-10 years. As per the Interest Rate. Matrix. Overall Financial Performance of BRAC Bank Limited. 46 |P a g e.

(54) Requirements for opening an account          . Two copies of passport size photographs ( for account holder) One copy passport size photograph of the nominee Any one photo ID card. ( National ID, Passport, Driving license) Introducer signature on account opening form and photograph TIN number (If any) Trade license Business seal Visiting card Partnership deed Affidavit (if needed). Account Opening Procedure Fig: account opening procedure. Applicant fills up the relevant application form in the application form in the prescribed. He/she is required to fill up the specimen signature card. Account is opened. In the head office, account section will update the information.. After depositing the cash, BSSO will provide the debit card or cheque book if available. Then the BSSO send the AC form to the Head office.. For individual introduction is needed by an account holder. The authorized officer scrutinizes the introduction and examine the documents submit. Issuance of deposit slip and the deposit must be made in cash. Also cheque is acceptable to the bank. Overall Financial Performance of BRAC Bank Limited. 47 |P a g e.

(55) 2. ATM Debit card: ATMs are electronic machines, which are operated by a customer himself to deposit or to withdraw cash from bank. For using an ATM, a customer has to obtain an ATM card from his bank. The ATM card is a plastic card, which is magnetically coded. It can be easily read by the machine.. How to activate The ATM card holder has to call 16221 to activate the card. After calling call center number at 16221 then press 1 for Bengali language, then press 0 for communicating with call centre agent. He has to tell the agent that “I want to activate my ATM card”. Then the agent will ask various personal information related question e.g. what is your date of birth? What is your mother’s name? Who is your nominee? Etc. After confirming that information the agent will activate the card.. How to re-issue In many case, customer lost or break their card. In that case, the card holder needs a new card. For getting a new card, customer has to go to the any branch of BRAC Bank Ltd also SME and Krishi service centre because of online banking. The bank will charge 345(including VAT) taka. After 5 working days the card will reach the requested branch but The PIN number of the card will send to mother branch from head office. The customer should collect the PIN number from his/her mother branch.. How to cancel or Stop Customer lost the card, no matter, just call 16221 > 1(Bengali) or 2(English) > 0 and tell the agent that “Stop my ATM card”. Then the agent similarly ask the question when you called for activating the card. After confirming the information the agent will stop the card. For cancelling the card, you should come to the bank and fill up a form regarding cancelling the ATM card.. Overall Financial Performance of BRAC Bank Limited. 48 |P a g e.

(56) How to deliver & get from other branch When requested customer arrive to desk and asked for their card, then BSSO first identify the issue date of the card and deliver the card to the respective customer. BSSO also sent card to the other branch as per mail. When a customer requests to get card from other branch then the BSSO sent mail to the respective branch for sending the card.. How to reconcile Custodian of ATM cards reconcile cards each & every working day end. I have done this in my internship period. Below shown the example of reconciliation –. Daily ATM card Reconciliation DATE: Brought forward Receive from H/O Delivery Receive from other br. As per mail Sent to other Br. As per mail Sent for destruction TOTAL. Prepared by. 20.07.2012 526 10 14 1. Remarks. Gulshan Br.. 2. Pabna Br., Comilla Br.. 89. For the month of April. 432. Checked By. How to destroy If ATM card holders didn’t receive the card within 3 months, then the custodian send the list of destructible card to the head office for destruction approval. After getting approval from head office, the custodian sent card to the head office for destruction.. Overall Financial Performance of BRAC Bank Limited. 49 |P a g e.

(57) 3. Chque Book related experience. Types of cheque book There are 2 types of cheque book. One is Debit cheque book which is applicable for savings and current account; another is credit card cheque book which is applicable for credit card holder.. How to request for a new cheque book Each & every current and savings account cheque book has an application leaf, which has to provide with sign and selecting amount of leaf. After 3 working days, the respective customer can collect cheque book from the branch. It will charge as per schedule of charges. If the application leaf lost, no matter, each & every branch has a form “Requisition for a new cheque book” just filling up the form and collect the cheque book after 3 working days.. How to deliver & get cheque book from other branch It is same as ATM card.. Overall Financial Performance of BRAC Bank Limited. 50 |P a g e.

(58) How to reconcile Custodian of cheque book reconcile cheque books each & every working day end. I have done this in my internship period. Below shown the example of reconciliation –. Daily Cheque Book Reconciliation. DATE: 20.07.2012 Brought forward Receive from H/O Delivery Receive from other br. As per mail Sent to other Br. As per mail Sent for destruction TOTAL. Prepared by. Savings. Current. TOTAL. 59 10 6. 79 8 10. 138 18 16. 0. 0. 0. 0. 0. 0. 5. 3. 8. 58. 74. 132. Checked By. How to destroy If cheque book account holders didn’t receive the cheque book within 3 months, then the custodian send the list of destructible cheque book to the head office for destruction approval. After getting approval from head office, the custodian sent cheque book to the head office for destruction.. How to cancel or stop It is same as ATM card. Overall Financial Performance of BRAC Bank Limited. 51 |P a g e.

(59) 4. ATM card PIN Without PIN number, card holder can’t access the card in the ATM & POS machine. PIN number is very important for card holder. It should be kept safe place for further incidents.. How to request for a new PIN It is same as ATM card. Reconciliation It is same as ATM card. How to deliver & get from other branch It is same as ATM card. How to destroy It is same as ATM card. Overall Financial Performance of BRAC Bank Limited. 52 |P a g e.

(60) 5. Receive courier: I was responsible for receiving all the couriers on behalf of the branch. The courier boy used to come in my desk and deliver all the couriers. There were a few steps that I needed to follow when courier came.The branch maintains an inward mail register where all the incoming mails were written down, the things that were needed to mention in the register were, sender’s name, mailed to, description of mail, receiver’s initials, the code number written on the receipt and remarks. When a mail came, I had to open the mail and check it, then write down the POD number, i.e. the number written on the receipt. Then I would sign the receipt, put the received seal and give it back to the courier boy. Each day, the courier used to arrive at three different times. The first courier used to come at around 10:15 a.m. the second one came around 12 p.m. and the third came around 2 p.m. There were different sorts of mail that used to come every day. But there were also some common mails that used to come every day. Such mails included documents, cards, pin number, cheque books, return cheques etc from the head office. Other than that there was mail from other branches and other institutions. The morning courier mainly contained captured cards, these are the cards of the Rampura Branch guests that got stuck in the ATM booths at different locations and came to the branch for the collection of the guests. The captured cards that came through the courier were entered in the Captured Card Register. The pin numbers also used to come in the morning mail, the pin numbers were the secret numbers for the guests to operate the debit cards. After receiving the pin numbers, they were written down to the PIN register, from where the pins were delivered. And the returned documents included Account Opening Forms (AOF), other forms or papers which sent to the head office for processing but were returned due to some errors made by the branch. The late afternoon courier mostly contained debit cards, credit cards and cheque books. The guests give card request to the BSSOs (Branch Sales and Service Officers) when there is some problem with their current cards and the new cards come through Overall Financial Performance of BRAC Bank Limited. 53 |P a g e.

(61) courier. The guests also give cheque book requests and the cheque books also come through mail. I was also responsible for making entries on the registers of the respective documents for example cheque book register, debit card register etc.. 6. Foreign Remittance service experience Remittance is the vital input for our country’s growth. Each & every year Bangladesh receives vast amount of foreign currency. BRAC Bank has 3,500 pay out location.. SL. NAME. 1. GL. DIGIT. Sample. Process. Western Union 1512050260140001. 10. 1234567890. System. 2. Xpress Money. 1512050260140007. 16. 1234567892514362. Mail. 3. MT-express. 1512050260140015. 16(only. 1234567892365847. Mail. UK) 4. Placid. 1512050260140016. 12(but pin. 123456789362PIN1234 Mail. 04) 5. IME. 1512050260140017. 11(951,. 911358456. System. 911,943) 6. TransFast. 1512050260140020. 33RB/TF/AF. 33TF12365849. System. 7. Money gram. 1512050260140021. 8. 58456932. Mail. 8. Merchantrade. 1512050260140022. 14. 12345678963254. System. 9. Al-Ansary. 1512050260140024. 7. GIT-1234567. System. 10. Samba. 1512050260140028. 12. 123456789456. System. 11. Pay Cash. 1512050260140038. 6-18. SE12345876. System. 12. Ria. 1512050260140025. 6-18. IT12347856. System. Overall Financial Performance of BRAC Bank Limited. 54 |P a g e.

(62) 7. New retail banking business model. Segment. Premium Banking. Supreme Banking. Excel Banking. Easy Banking. Eligibility. BDT 50 lac & above. BDT 10 lac to 50 lac. BDT 50K to 10 BDT less than lac 50K. Identification mark. Platinum debit card. Supreme privilege card. Excel privilege card. POP up message in finacle. POP up message in finacle. POP up message in finacle. Only planet card. Overall Financial Performance of BRAC Bank Limited. 55 |P a g e.

(63) 8. Preparing fixed deposit and DPS forms for Sanction Fixed Deposits also known as term deposits are the fixed amount of money that the guests keep in a separate account named „fixed deposit‟ for a specific time period to earn interest on that amount. This interest is greater than the savings rate that the bank offers. Different rates of interest are being offered for different amount of money saved. An individual will receive an interest of 12.5% if he keeps 50K or more BDT. There are different types of fixed deposit products as mentioned earlier in the paper. Deposit Premium Scheme (DPS) is a monthly basis deposit scheme where the depositor deposits a fixed amount every month for a fixed period and on maturity gets a consolidated amount including interest. I was also responsible to prepare the fixed deposit and deposit premium scheme (DPS) forms on behalf of the clients. Only account holders of BRAC Bank LTD. could open these schemes. The new account, i.e. fixed deposit or DPS would be linked to the mother account of the client. I used to write the particulars of the client, the scheme that they wanted and then give the form to a BSSO for verification. Information may be filled in the form if the client wishes to change the nominee to the scheme. Then the particulars of the nominee should also be included. After verification by the BSSO, I used to pass the form to the CSM for her approval. Later I would scan the form and send it to the head office for approval. After approval of the scheme from the head office, the hard copy of the form would also be sent to the head office through courier.. Overall Financial Performance of BRAC Bank Limited. 56 |P a g e.

(64) 9. Other service related experience i. ii. iii. iv. v.. Pay order E-statement Internet Banking Register khata maintenance ANTI MONEY LAUNDERING POLICY. Overall Financial Performance of BRAC Bank Limited. 57 |P a g e.

(65) CHAPTER – IV. OVERALL FINANCIAL PERFORMANCE ANALYSIS. Overall Financial Performance of BRAC Bank Limited. 58 |P a g e.

(66) CHAPTER 4 CHAPTER: OVERALL FINANCIAL PERFORMANCE. 4.1 Financial Performance of BBL 4.2 Graphical Analysis of Financial Elements 4.3 Correlation and Regression of Financial Elements 4.4 Financial Ratio Analysis 4.5 SWOT Analysis 4.6 Share Holding Structure. Overall Financial Performance of BRAC Bank Limited. 59 |P a g e.

(67) 4.1 The table below shows the financial performance of BRAC Bank Ltd. From 2004 to 2011 Table-4.1: Financial Performance analysis of BRAC Bank Limited Amount BDT in million Profit After Tax. Deposits. 2004. 99. 8169. 5820. 1626. 2005. 193. 13409. 11791. 2006. 334. 23002. 2007. 618. 2008. Particulars Year. Loans. Investments. Total Assets. Imports. Exports. 10016. 562. 136. 2164. 16876. 3015. 277. 19557. 3768. 30012. 3890. 412. 37368. 32461. 4997. 45383. 5114. 641. 973. 58007. 52677. 8245. 72442. 10148. 568. 2009. 1304. 75220. 64151. 10375. 95127. 16773. 681. 2010. 1670. 88158. 82461. 12856. 117298. 33660. 1819. 2011. 1702. 103726. 90822. 14199. 133201. 35400. 2340. Source: Annual report 2008 to 2011 of BRAC Bank Ltd.. Overall Financial Performance of BRAC Bank Limited. 60 |P a g e.

(68) 4.2 Graphical Analysis of Financial Elements DEPOSIT FROM 2004 TO 2011. YEAR 2004 2005 2006 2007 2008 2009 2010 2011. (amount BDT in million) 120000 100000 80000 60000 40000 20000 0 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. DEPOSIT 8169 13409 23002 37368 58007 75220 88158 103726. Amount BDT in million. The deposit of BBL is increasing continuously and rapidly. In 2004 the deposit was 8,169 million taka. But in 2011 the deposit is 1,03,726 million taka. It indicates that depositors of BBL increasing day by day.. LOAN FROM 2004 TO 2011 YEAR 2004 2005 2006 2007 2008 2009 2010 2011. (amount BDT in million) 100000 80000 60000 40000 20000 0 -20000. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. LOAN 5820 11791 19557 32461 52677 64151 82461 90822. Amount BDT in million. The loan of BBL is increasing continuously and rapidly. In 2004 the deposit was 5,820 million taka. But in 2011 the deposit is 90,822 million taka. It indicates that loan disbursement of BBL increasing day by day. Overall Financial Performance of BRAC Bank Limited. 61 |P a g e.

(69) INVESTMENT FROM 2004 TO 2011 YEAR INVESTMENT 2004 1626 2005 2164 2006 3768 2007 4997 2008 8245 2009 10375 2010 12856 2011 14199. (amount BDT in million) 15000 10000 5000 0 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. Amount BDT in million. The investment of BBL is increasing continuously and consistently. In 2004 the investment was 1,626 million taka. But in 2011 the investment is 14,199 million taka. It indicates that investment of BBL increasing consistently.. INVESTMENT FROM 2004 TO 2011 YEAR. (amount BDT in million) 150000 100000 50000 0 2004 -50000. 2005. 2006. 2007. 2008. 2009. 2010. 2011. TOTAL ASSETS. 2004 2005 2006 2007 2008 2009 2010 2011. 10016 16876 30012 45383 72442 95127 117298 133201. Amount BDT in million. The total asset of BBL is increasing continuously and consistently. In 2004 the total asset was 10,016 million taka. But in 2011 the total asset is 1,33,201 million taka. It indicates that total asset of BBL increasing consistently.. Overall Financial Performance of BRAC Bank Limited. 62 |P a g e.

(70) IMPORT FROM 2004 TO 2011 (amount BDT in million). YEAR. IMPORT. 2004 2005 2006 2007 2008 2009 2010 2011. 562 3015 3890 5114 10148 16773 33660 35400. 40000 30000 20000 10000 0 -10000. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. Amount BDT in million. In 2004 to 2011 the import is increasing two or three times than previous year. So we can say that the bank accelerate its foreign exchange performance. In 2004 it was 562 million and 2011 it raised to 35,400 million.. EXPORT FROM 2004 TO 2011 YEAR 2004 2005 2006 2007 2008 2009 2010 2011. (amount BDT in million) 2500 2000 1500 1000 500 0 -500. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. EXPORT. 136 277 412 641 568 681 1819 2340. Amount BDT in million. In 2004 to 2011 the export is increasing continuously. In 2004 it was 136 million and 2011 it raised to 2,340 million. So we can say that the bank accelerate its foreign exchange performance.. Overall Financial Performance of BRAC Bank Limited. 63 |P a g e.

(71) PROFIT AFTER TAX FROM 2004 TO 2011. 2000 1500 1000 500 0 -500. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. YEAR. Profit after tax. 2004 2005 2006 2007 2008 2009 2010 2011. 99 193 334 618 973 1304 1670 1702. Amount BDT in million. In 2004 profit after tax was only 99 million taka. But profit after tax increasing continuously and so rapidly due to gaining trust from customer. In 2010 profit after tax was 1,670 million taka. It indicates that, in 2010 the bank performed most efficiently. But in 2011 the bank is not perform well due to economic recession, political imbalance etc. Hope next year BBL will perform well more than any other financial years.. Overall Financial Performance of BRAC Bank Limited. 64 |P a g e.

(72) 4.3 Correlation and Regression of Financial Elements Deposit and profit after tax Table-4.2: Correlations between deposit and profit after tax DEPOSIT Pearson Correlation DEPOSIT. P.A.T 1. .995. Sig. (2-tailed). P.A.T. **. .000. N. 8. 8. Pearson Correlation. **. 1. .995. Sig. (2-tailed). .000. N. 8. 8. **. Correlation is significant at the 0.01 level (2-tailed).. Table-4.2.1: Regression between deposit and profit after tax Model. R. R Square. Adjusted R Square. Std. Error of the Estimate. 1. .995. a. .989. .987. 4058.622. Predictors: (Constant), P.A.T. Table-6.2.2: Regression Coefficients Model. Unstandardized Coefficients. Standardized. t. Sig.. Coefficients B (Constant). Std. Error. 3389.380. 2495.361. 55.120. 2.369. Beta 1.358. .223. 23.264. .000. 1 P.A.T. .995. Dependent Variable: DEPOSIT. Table 4.2 shows the correlation between deposit and profit after tax. The correlation between deposit and profit after tax is 0.995 which indicates very strong relationship between them. The value of R2 is 0.989 means that for each one unit increase of deposit the profit after tax increase to 0.989. Table 4.2.2 shows the regression coefficient between deposit and profit after tax for 2004 to 2011 is 55.120. It is the rate of changes profit after tax and the deposit. And the value of coefficient α is 3389.380. That means the regression equation is: Y = 3389.380 + 55.120 x where, y = profit after tax and x = deposit. Overall Financial Performance of BRAC Bank Limited. 65 |P a g e.

(73) Deposit and loan Table-4.3: Correlations between deposit and loan DEPOSIT. LOAN. Pearson Correlation DEPOSIT. LOAN. 1. .998. Sig. (2-tailed). **. .000. N. 8. 8. Pearson Correlation. **. 1. .998. Sig. (2-tailed). .000. N. 8. 8. **. Correlation is significant at the 0.01 level (2-tailed).. Table-4.3.1: Regression between deposit and loan Model. R. R Square. Adjusted R Square. Std. Error of the Estimate. 1. .998. a. .996. .995. 2410.745. Predictors: (Constant), LOAN. Table-4.3.2: Regression Coefficients Model. Unstandardized Coefficients. Standardized. t. Sig.. Coefficients B (Constant). Std. Error. 1252.926. 1523.398. 1.104. .028. Beta .822. .442. 39.306. .000. 1 LOAN. .998. Dependent Variable: DEPOSIT. Table 4.3 shows the correlation between deposit and loan. The correlation between deposit and loan is 0.998 which indicates very strong relationship between them. The value of R2 is 0.996 means that for each one unit increase of deposit, the loan increase to 0.996. Table 4.3.2 shows the regression coefficient between deposit and loan for 2004 to 2011 is 1.104. It is the rate of changes loan and the deposit. And the value of coefficient α is 1252.926. That means the regression equation is: Y = 1252.926 + 1.104 x where, y = loan x = deposit. Overall Financial Performance of BRAC Bank Limited. 66 |P a g e.

(74) Import and export Table-4.4: Correlations between import and export IMPORTS Pearson Correlation IMPORTS. EXPORTS. EXPORTS 1. .964. Sig. (2-tailed). **. .000. N. 8. 8. Pearson Correlation. **. 1. .964. Sig. (2-tailed). .000. N. 8. 8. **. Correlation is significant at the 0.01 level (2-tailed). Table-4.4.1: Regression between import and export Model. R. R Square. Adjusted R Square. Std. Error of the Estimate. 1. .964. a. .930. .918. 225.056. Predictors: (Constant), IMPORTS. Table-4.4.2: Regression Coefficients Model. Unstandardized Coefficients. Standardized. t. Sig.. Coefficients B. Std. Error. (Constant). 116.679. 115.112. IMPORTS. .055. .006. Beta 1.014. .350. 8.927. .000. 1 .964. Dependent Variable: EXPORTS. Table 4.4 shows the correlation between import and export. The correlation between import and export is 0.964 which indicates very strong relationship between them. The value of R2 is 0.930 means that for each one unit increase of export the import increase to 0.930. Table 4.4.2 shows the regression coefficient between export and import for 2004 to 2011 is 0.055. It is the rate of changes import and the export. And the value of coefficient α is 116.679. That means the regression equation is: Y = 116.679 + 0.055 x where, y = import x = export. Overall Financial Performance of BRAC Bank Limited. 67 |P a g e.

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