LETTER OF TRANSMITTAL December 01, 2010 Dr.

Ataur Rahman Assistant Professor, Department of Marketing Universit of Dhaka Subject: !ubmission of research report on "#!$% %onsumer Pro&uct, %re&it 'peration ( %o))ection Proce&ure in $ang)a&esh.* Dear !ir,

+his is m p)easure to submit m research report on "#!$% %onsumer Pro&uct,

%re&it 'peration ( %o))ection Proce&ure in $ang)a&esh* ,hich - ,as assigne&. -t

,as a great opportunit for me to ac.uire kno,)e&ge an& e/perience in respect of the functions, proce&ures an& cre&it operation of #!$% in $ang)a&esh. - be)ieve that the kno,)e&ge an& e/perience - have gathere& &uring m research perio& ,i)) immense) he)p me in m future professiona) )ife. - have concentrate& m best efforts to achieve the ob0ectives of the research paper stu& an& hope that m en&eavor ,i)) serve the purpose. #o,ever, - ,i)) a),a s be rea& to provi&e an further c)arification that ou ma re.uire.

!incere)

ours,

MD. !haifu) -s)am $$A 12th $atch Ro))1123 4!ec. $5 Department of Marketing Universit of Dhaka

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ACKNOWLEDGEMENT - ,ou)& )ike to give thanks to our marketing &epartment to provi&e us some oung, energetic, honest an& &e&icate& teachers. Dr. Ataur Rahman is one of them, he authentica)) &eserve thanks from the batch 12th as ,e)) as from me 4MD. !haifu) -s)am5 to give me such a nice topic. After him - ,ant to appreciate some of m c)assmates an& frien&s for their criticism an& he)ping me to fin& out &ifferent materia)s to make this report. 6ithout their criticism - ma not be ab)e to cover some of m fau)ts an& for that reason - think the report ,i)) become more acceptab)e to our teacher an& as ,e)) as ,ho ,i)) stu& this report. - a)so appreciate the te/t book authors for c)earing the concept. Above a)), - have to give thanks to a)might A))ah an& - hope that - ma ackno,)e&ge ever one ,ho he)ps me to make this report.

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LIST OF ABBREVIATION
P7! %%R 8-M $-M M!' '$U 9DD% A:%' A+$ %-$ #+; P-: UD% !:A %9P! :'$ +78A Persona) 7inancia) !ervices %onsumer %re&it Risk 8roup -nstruction Manua) tense& $usiness -nstruction Manua) Mobi)e sa)es officers 'ffshore $anking Unit 9)ectronic Data -nterchange Documentar %re&it Asset :iabi)it Management %ommittee Automate& +e)e $anking %orporate -nstitutiona) $anking #!$% +ra&e !ervice Persona) -nsta))ment :oan Un&ate& che.ue !pecia) !ervice Agreement %orporate 9mp)o ment Privi)ege !cheme :oan 'verbur&en +ra&e 7inance 8enera) Agreement

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108

EXECUTIVE SUMMARY

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#!$% 4+he #ongkong an& !hanghai $anking %orporation :t&5 is a fast gro,ing private bank in $ang)a&esh. #!$% has focuse& for provi&ing high .ua)it customer service at a ver competitive price. %re&it operation through %onsumer banking is a ma0or source of earning for #!$% in $ang)a&esh. +he principa) issue to be consi&ere& ,hi)e giving the faci)ities to in&ivi&ua) consumer or to groups is the opportunit associate& ,ith such activities. %onsumer banking opportunit is ana) <e& through consi&ering a number of factors invo)ve& in it. %re&it operation an& co))ection proce&ure can inf)uence the consumer pro&uct of the $ank. A)) financia) institutions have their in&ivi&ua) ,a of measuring an& managing opportunit to keep it at the highest possib)e )eve). +his report &ivi&e& in to t,e)ve ma0or chapters, ,here main) focuse& on the &ifferent t pes of #!$%=s consumer pro&uct, cre&it operation an& co))ection proce&ure in $ang)a&esh. +he overvie,s are as fo))o,s> Cha te!"#: An 'vervie, Cha te!"$: -ntro&uction of #!$% group Cha te!"%: 'vervie, of #!$% $ang)a&esh Cha te!"&: An 'vervie, of 7unctiona) Departments Cha te!"': Pro&ucts ( !ervices Cha te!"(: :oans ( %re&its Cha te!"): %ritica) functiona) issues Cha te!1*: -n&ustr ana) sis Cha te!"+: %re&it assessment criteria Cha te!"#,: !ummar of the fin&ings ( +ren& ana) sis Cha te!"##: Recommen&ations Cha te!"#$: conc)usion.

+his report basica))

&ea)s ,ith #!$%=s consumer pro&uct, cre&it operation an&

co))ection proce&ure in $ang)a&esh.

%#AP+9R 1> -?+R'DU%+-'?

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#-#

O!./.0 12 the Re 1!t

As a man&ator re.uirement of the $ache)or of the $usiness A&ministration 4$$A5 program un&er Dhaka Universit , this report entit)e& 1 @#!$% %onsumer Pro&uct, %re&it 'peration ( %o))ection Proce&ure in $ang)a&esh@ 1 is a connive& &epiction of Persona) 7inancia) !ervices4P7!5 ( %onsumer %re&it Risk 4%%R5 in +he #ongkong an& !hanghai $anking %orporation :t&. +he attachment of the report starte& on !eptember 12, 2010 an& finishe& on ?ovember A0, 2010. M aca&emic supervisor Mr. Dr. Ataur Rahman assigne& me the topic of the term paper ( &u) approve& it.

#-$ Object.3e 12 the 4tu56

+he purposes of this report cognates the research purpose. +he report ob0ective is to gather kno,)e&ge an& e/periencing the corporate ,orking environment ,ith the c)ose appro/imation to the business firm an& the e/perts ,ho are )ea&ing an& making strategic &ecisions to enhance the gro,th of a financia) institution. -n this regar& this report is contemp)ating the kno,)e&ge an& e/perience accumu)ate& from the research program. 6ith the set gui&e)ines an& proposa) b the Dhaka Universit an& ,ith the kin& a&vices of the organi<ation an& m aca&emic supervisor, this report comprise of an organi<ation part an& a pro0ect part. +he prime ob0ective of organi<ation part is> +o present an overvie, an& brief intro&uction of #ongBong an& !hanghai $anking %orporation :t&. +he prime ob0ectives of pro0ect part are> 8ive a ver brief overvie, of the risk ana) sis criteria for )oan assessment. Ana) sis the &emograph of the skip customers. 7in& out if there is an re)ationship among the skip customers.

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#-% Sc1 e 12 the 4tu56

+he scope of this report is )imite& to the overa)) &escription of the compan , its services an& its financia) performance ana) sis. +he scope of the stu& is )imite& to organi<ationa) setup, functions, an& performances. !ince #!$% is sti)) in its gro,th stage in $ang)a&eshC it has sti)) to go a )ong ,a to achieve its &estination. +he report ,i)) main) focus on ,hat criteria #!$% $ang)a&esh is maintaining before approving the )oan faci)it . An& if there is re)ationship among the customers ,ho are &efau)ting to pa the insta))ments accor&ing) .

#-& Meth15171/6 12 the 4tu56

$oth the primar as ,e)) as the secon&ar form of information ,as use& to prepare the report. +he &etai)s of these sources are high)ighte& be)o,. 8!.9a!6 S1u!ce4: %ustomer &atabase an& historica) &ata of &e)in.uent customers. -ntervie,s ,ith the approva) officers as ,e)) as the sa)es an& co))ection teams. Sec105a!6 S1u!ce4: I0te!0a7 S1u!ce4 D #!$% %o))ection Manua) D #!$% $ankEs Annua) Report D 8roup $usiness Principa) Manua) D 8roup -nstruction Manua) 48-M5 ( $usiness -nstruction Manua) 4$-M5 E:te!0a7 S1u!ce4 D Different books an& perio&ica)s re)ate& to the banking sector D $ang)a&esh $ank %ircu)ars D ?e,spapers

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D 6ebsite information Data c177ect.0/ .04t!u9e0t4: I0"5e th .0te!3.e; During the e/p)orator research, in1&epth intervie,s ,ere con&ucte& ,ith managers, approva) officers, mobi)e sa)es officers 4M!'5 ( co))ection team of #!$%.

#-' L.9.tat.10

12 the 4tu56

$eing an intern of "Persona) 7inancia) !ervices F M-! &epartment* of #!$% Anchor +o,er, it ,as &ifficu)t to sta in continuous contact ,ith other &epartments. As per $ank=s comp)iance, as an intern - ,as unab)e to obtain in&ispensab)e e/periences of &ifferent &epartments. Detai)s of man aspects of the services of #!$% $ang)a&esh :imite& have been skippe& in this report &ue to various constraints, inc)u&ing time an& space, securit reason. 'ne of the main barriers in ,riting this report ,as the confi&entia)it of &ata. +hough ha& access to )ot of information regar&ing the performance of the bank, - am unab)e an& not authori<e& to use this information &ue to )ega) restrictions.

C<A8TER $: LITERATURE REVIEW

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+he ob0ective of this research is to c)arif

the #!$%=s consumer pro&uct, cre&it

operation an& co))ection proce&ure in $ang)a&esh. +he report ob0ective is to gather kno,)e&ge an& e/periencing the corporate ,orking environment ,ith the c)ose appro/imation to the business firm an& the e/perts ,ho are )ea&ing an& making strategic &ecisions to enhance the gro,th of a financia) institution. -n this regar& this report is contemp)ating the kno,)e&ge an& e/perience accumu)ate& from the research program. #!$%=s ob0ectives are to provi&e innovative pro&ucts supporte& b .ua)it &e)iver of s stems an& e/ce))ence customer services, to train an& motivate staffs an& to e/ercise socia) responsibi)it . $ combining regiona) strengths ,ith group net,ork #!$%=s aim is to be the one of the )ea&ing banks in its princip)e markets. #!$%=s goa) is to achieve sustaine& earnings gro,th an& to continue to enhance shareho)&ers va)ue.

$-# A0 O3e!3.e; 12 <SBC G!1u

+he #!$% 8roup is name& after its foun&ing member, +he #ongkong an& !hanghai $anking %orporation :imite&, ,hich ,as estab)ishe& in 1832 in #ong Bong an& !hanghai to finance the gro,ing tra&e bet,een %hina an& 9urope. +homas !uther)an&, a #ong Bong !uperinten&ent of the Peninsu)ar an& 'rienta) !team ?avigation %ompan he)pe& to estab)ish this bank in March 1832. +hroughout the )ate nineteenth an& the ear) t,entieth centuries, the bank estab)ishe& a net,ork of agencies an& branches base& main) in %hina an& !outh 9ast Asia but a)so ,ith representation in the -n&ian sub1continent, Gapan, 9urope an& ?orth America. +he post1,ar po)itica) an& economic changes in the ,or)& force& the bank to ana) <e its strateg for continue& gro,th in the 1H20s. +he bank &iversifie& both its business an& its geographica) sprea& through ac.uisitions an& a))iances. #!$% #o)&ings p)c, the parent compan of the #!$% 8roup, ,as estab)ishe& in 1HH1 ,ith its shares .uote& on both the :on&on an& #ong Bong stock e/changes. +he #!$% 8roup no, comprises a uni.ue range of banks an& financia) service provi&ers aroun& the g)obe. #!$% maintains one of the ,or)&=s )argest private &ata communication net,orks an& is reconfiguring its business for the e1age. -ts rapi&) gro,ing e1commerce capabi)it inc)u&es the use of the internet, P% banking over a private net,ork, interactive +;, an& 108

fi/e& an& mobi)e, inc)u&ing ,ire)ess app)ication protoco) or 6AP1enab)e& mobi)e, te)ephones.

<SBC M.44.10 State9e0t:

"6e aim to satisf our customers ,ith high .ua)it service that ref)ects our g)oba) image as the premier internationa) bank*.

$-$ <SBC <.4t1!6

+he #!$% 8roup has a histor , ,hich is uni.ue. Man of its principa) companies opene& for business over a centur ago an& the have a histor rich in variet an& achievement. F1u05at.10 a05 G!1;th: +he inspiration behin& the foun&ing of the bank ,as +homas !uther)an&, a !cot ,ho ,as then ,orking as the #ong Bong !uperinten&ent of the Peninsu)ar an& 'rienta) !team ?avigation %ompan . Rea)i<ing the consi&erab)e &eman& for )oca) banking faci)ities both in #ong Bong an& a)ong the %hina coast an& he he)pe& to estab)ish the bank in March 1832. +hen, as no,, the bankEs hea&.uarters ,ere at 1 IueenEs Roa& %entra) in #ong Bong an& a branch ,as opene& one month )ater in !hanghai. +hroughout the )ate nineteenth an& the ear) t,entieth centuries, the bank estab)ishe& a net,ork of agencies an& branches base& main) in %hina an& !outh 9ast Asia but a)so ,ith representation in the -n&ian sub1continent, Gapan, 9urope an& ?orth America. -n man of its branches the bank ,as the pioneer of mo&ern banking practices. 7rom the outset, tra&e finance ,as a strong feature of the bankEs business ,ith go)& bars, e/change an& merchant banking a)so p)a ing an important part. A&&itiona)) , the bank issue& notes in man countries throughout the 7ar 9ast. During the !econ& 6or)& 6ar the bank ,as force& to c)ose man branches an& its hea& office ,as temporari) move& to :on&on. #o,ever, after the ,ar the bank p)a e& a ke

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ro)e in the reconstruction of the #ong Bong econom an& began to further &iversif the geographica) sprea& of the bank.

The Ma=.0/ 12 the 915e!0 <SBC G!1u :

+he post1,ar po)itica) an& economic changes in the ,or)& force& the bank to ana) <e its strateg for continue& gro,th in the 1H20s. +he bank &iversifie& both its business an& its geographica) sprea& through ac.uisitions an& a))iances. +his strateg cu)minate& in 1HH2 ,ith one of the )argest bank ac.uisitions in histor ,hen #!$% #o)&ings ac.uire& the UB=s Mi&)an& $ank p)c 4no, ca))e& #!$% $ank p)c5. #o,ever, it remaine& committe& to its historica) markets an& p)a e& an important part in the reconstruction of #ong Bong ,here its branch net,ork continue& to e/pan&.

$-%
Man name.

Ba0=4 u05e! the <SBC G!1u

of the members have change& their name into #!$%, +he #ongkong an&

!hanghai $anking %orporation :imite& to intro&uce the ,ho)e group un&er one bran&

M.57a05 Ba0=

HSBC Holdings acquired Midland Bank one of the principal UK clearing banks in 1HH2. #ea&.uartere& in :on&on, the bank has a persona) customer base of five an& a ha)f mi))ion, business customers of over ha)f a mi))ion, an& a net,ork of a)most 1,J00 branches in the Unite& Bing&om. Mi&)an& has offices in 28 countries an& territories, principa)) in continenta) 9urope, ,ith a number of offices in :atin America. Hang Seng Bank, in ,hich #ongkong $ank has a 32.1K e.uit interest, maintains a net,ork of 1L3 branches in the #ong Bong !AR, ,here it is the secon& )argest )oca)) incorporate& bank after #ongkong $ank. #ang !eng $ank a)so has a branch in !ingapore an& t,o branches an& t,o representative offices in %hina. Marine Midland Bank hea&.uartere& in $uffa)o, ?e, Mork, has A80 banking )ocations state,i&e. +he bank serves over t,o mi))ion persona) customers an& 120,000 commercia) an& institutiona) customers in ?e,

<a0/ Se0/ Ba0=

Ma!.0e M.57a05 Ba0=

Mork !tate an&, in se)ecte& businesses, throughout the Unite& !tates. <10/=10/ Ba0= <10/=10/ Ba0= 12 Ca0a5a is the )argest foreign1o,ne& bank in

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12 Ca0a5a

%ana&a an& the countr =s seventh1)argest bank. 6ith hea&.uarters in ;ancouver, it has 113 branches across %ana&a an& t,o branches in the ,estern Unite& !tates. Ba0c1 <SBC Ba9e!.05u4 ,as estab)ishe& in $ra<i) in 1HHJ. +he bank has net,ork of some 1,H00 branches an& sub1branches, the secon&

Ba0c1 <SBC Ba9e!.05u4

)argest in $ra<i). <10/=10/ Ba0= <10/=10/ Ba0= Ma7a64.a is the )argest foreign1o,ne& bank in Ma7a64.a Ma)a sia an& the countr =s fifth1)argest bank, ,ith A3 branches. The B!.t.4h The B!.t.4h Ba0= 12 the M.557e Ea4t >B!.t.4h Ba0=? is the )argest an& Ba0= 12 the most ,i&e) represente& internationa) bank in the Mi&&)e 9ast, ,ith A1 M.557e Ea4t >B!.t.4h Ba0=? branches throughout the Unite& Arab 9mirates, 'man, $ahrain, Iatar, Gor&an, :ebanon an& the Pa)estinian Autonomous Area, inc)u&ing an offshore banking unit in $ahrain. +he bank a)so has branches in Mumbai an& +rivan&rum, -n&ia, an& $aku, A<erbai0an, as ,e)) as <SBC Ba0c1 R1be!t4 private banking operations in :on&on an& 8eneva. <SBC Ba0c1 R1be!t4 ,as ac.uire& in 1HHJ. $ase& in $uenos Aires, it is one of Argentina=s )argest private) o,ne& banks, ,ith 30 branches

throughout the countr . <10/=10/ Ba0= <10/=10/ Ba0= 12 Au4t!a7.a has 13 branches across Austra)ia. -t is the 12 Au4t!a7.a f)agship of the #!$% 8roup=s businesses there, operating un&er the name #!$% Austra)ia, an& provi&ing a comp)ete range of financia) The Sau5. B!.t.4h Ba0= services. The Sau5. B!.t.4h Ba0=, a L0K1o,ne& member of the #!$% 8roup, has 3A branches throughout !au&i Arabia an& a branch in :on&on. F./u!e #: Ba0=4 u05e! the <SBC G!1u

'ther associate& 8roup banks are B!.t.4h A!ab C199e!c.a7 Ba0=@ The C6 !u4 81 u7a! Ba0= an& E/6 t.a0 B!.t.4h Ba0=-

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$-& Cu4t19e! Se/9e0t4 12 <SBC G!1u

8e!410a7 #!$% provi&es a fu)) range of persona) financia) services, inc)u&ing pensions an& investments. -n 2000, resi&entia) mortgages across the 8roup F e/c)u&ing #ouseho)& F gre, b 12K, ,hi)e non1mortgage persona) )en&ing increase& b over 20K. %re&it car&s in issue gre, b 20K ,or)&,i&e. !a)es of repa ment protection insurance an& &eposit gro,th reache& recor& )eve)s. %urrent account ba)ances in the UB e/cee&e& N 10 bi))ion for the first time at ear1en& 2000. +he number of customers registere& for e1banking services F via the internet an& te)ephone F more than treb)e& in 2000. +he internet generate& sa)es of C104u9e! F.0a0ce over 2.A mi))ion pro&ucts an& 8J mi))ion transactions. +hrough #ouseho)& -nternationa), -nc., #!$% is no, a ma0or provi&er of consumer finance an& a top 10 issuer of cre&it car&s in the U!A. #ouseho)& provi&es consumer )oans, cre&it car&s, vehic)e finance, mortgage financing an& cre&it insurance to mi&&)e America. During 200L, #ouseho)& achieve& goo& organic )oan gro,th, ,hich it supp)emente& ,ith portfo)io ac.uisitions. +he strongest gro,th ,as in the rea) estate portfo)io an& the mortgage services business, an& a)so in branch1base& consumer )en&ing. ! nerg benefits ,ith #!$% inc)u&e& C199e!c.a7 Ba0=.0/ store car&s an& point1of1sa)e financing. +he provision of services to sma)) an& me&ium1si<e& enterprises aroun& the ,or)& is core strength of #!$%. During 2000, #!$% increase& its )ea&ing position in the UB business start1up market to 21K an& attracte& recor& )eve)s of business current an& &eposit account ba)ances. $usiness internet banking ,as offere& in 20 countries an& territories, an& the number of registere& users more than &oub)e& to 300,000. Mone transmission revenues, tra&e finance fees, ,ea)th, savings an& insurance pro&ucts a)) sho,ing gro,th &uring 2000.

F.0a0c.a7 Se!3.ce4 current an& savings account, mortgages, insurance, cre&it car&s, )oans,

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C1! 1!ate@ I03e4t9e0t Ba0=.0/ a05 Ma!=et4

+his customer group comprises four main business )ines F %orporate an& -nstitutiona) $anking, 8)oba) -nvestment $anking, 8)oba) Markets an& 8)oba) +ransaction $anking F ,hich focus on )ong1term re)ationships ,ith ma0or internationa) corporations an& institutions. Recor& resu)ts ,ere achieve& in 2000. +he 8)oba) Markets business e/ce))e&, particu)ar) in internationa) &ebt issuance, risk management an& structure& pro&ucts, an& foreign e/change. 8)oba) -nvestment $anking ,as entruste& ,ith a number of )an&mark &ea)s in capita) restructuring, corporate reorgani<ation an& strategic a&vice. +his customer group provi&es ,or)&1c)ass financia) services to high net ,orth in&ivi&ua)s an& their fami)ies. -n 2000, Private $anking poste& improve& financia) resu)ts in a)) regions, )e& b Asia, ,hich ha& a recor& ear. ?e, business initiatives an& a genera) improvement in investment markets )e& to increase& c)ient activit across a range of pro&ucts. An increase in &iscretionar man&ates, together ,ith a strong &eman& for c)ient1tai)ore& structure& pro&ucts, contribute& to higher fee revenues an& &ea)ing income. 7un&s un&er management gre, b 18K, ref)ecting both net inf)o,s of c)ient assets an& improving market con&itions.

8!.3ate Ba0=.0/

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$-' <SBCA4 I0te!0at.10a7 Net;1!=

F./u!e $: <SBCA4 I0te!0at.10a7 Net;1!=4 +he #!$% 8roupEs internationa) net,ork comprises of some J,000 offices in 80 countries. A brief )ist is presente& be)o,>

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$-(

C1u0t!6 C7a44.2.cat.104

+o ensure that the ke resources 4management time, capita), human resources an& information techno)og 5 are correct) a))ocate& an& that the e/change of best practice is acce)erate& bet,een entities, the group has c)assifie& the countries ,here it operates into A categories> the 7a!/e@ the 9aj1! a05 the .0te!0at.10a7+hese c)assifications are a function of sustainab)e, attributab)e earnings, the number of retai) c)ients, ba)ance sheet an& si<e of operation. A brief presentation of this c)assification is sho,n be)o,>

F./u!e %: Ma 12 <SBCB4 C1u0t!6 C7a44.2.cat.104

La!/e: Unite& Bing&om, U!A an& #ong Bong !AROMain)an& %hina.

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 De2.0.t.10 More than one mi))ion persona) c)ients !ustainab)e earnings greater than U!P 200 mi))ion Bu4.0e44 F1cu4 %oncentrate& group resources on ,ea)th management $e a top 10 p)a er in an market or region serve& Deve)op cross se))ing, )o a)t pro&ucts. Maj1!: Argentina, %ana&a, Ma)a sia, -n&ia, Bing&om of !au&i Arabia, !ingapore an& Unite& Arab 9mirates. De2.0.t.10 !ustainab)e earnings bet,een U!P 100 1 200 mi))ion Bu4.0e44 F1cu4 Universa) bank=s 4persona), corporate, an& investment banking ,ith &omestic business5 P)atforms for internationa) group business ?e/t generation of )arge companies !tab)e se)f fun&ing entities 'nshore #I I0te!0at.10a7: +he rest of the ,or)&. De2.0.t.10 9arnings be)o, U!P 100 mi))ion 108 programs an& va)ue a&&e&

 Bu4.0e44 F1cu4 P)atforms for internationa) group business :imite& &omestic presence "?urser * for &eve)oping management +omorro,=s ma0or businesses !upporte& b offshore #I

$-)

I0te!0at.10a7 B!a05

A ke part of the 8roup=s business strateg , announce& in 1HH8, is the creation of a g)oba) bran& featuring the #!$% name an& he/agon s mbo). +he s mbo) is no, a fami)iar sight aroun& the ,or)&. +he 8roup has embarke& on the ne/t phase Q making the #!$% bran& universa)) s non mous ,ith its core va)ues of integrit , trust an& e/ce))ent customer service. <SBC B!a05 C C1! 1!ate I5e0t.t6: +he #e/agon )ogo of #!$% &erives from #!$%=s tra&itiona)) f)ag, a ,hite rectang)e &ivi&e& &iagona)) . +he &esign of the f)ag ,as base& on the cross of !+.An&re,, +he Patron !aint of !cot)an&. #!$% bran& ( corporate i&entit represents ,hat #!$% ,ants its bran& to mean to its customer. -t is &erive& from the group> C1! 1!ate Cha!acte!: #!$% is a pru&ent, cost conscious, ethica)) groun&e&, conservative, trust,orth

internationa) bui)&er of )ong1term customer re)ationships. Ba4.c D!.3e4: #!$%=s basic &rives are #igher Pro&uctivit , +eam 'rientation, an& %reative 'rgani<ation, ( %ustomer 'rientation.

108

+he essence of #!$% bran& is integrit , trust, an& e/ce))ent customer service. -t gives confi&ence to customers, va)ue to investors, ( comfort to co))eagues. +hrough the process of )istening to in&ivi&ua)s nee&s an& then acting in partnership to &e)iver the right so)utions, #!$% is committe& to he)p the c)ients make the most of their financia) assets. #!$% operate on a g)oba) basis, but a)so ,ork on a )oca) )eve) to ensure the cross1 bor&er &ifferences are i&entifie& an& an re)ate& benefits e/p)oite&. #!$% teams of specia)ists ensure that ,hether ou nee& so)utions across the ,or)&, regiona)) , or )oca)) , an& the have the ski))s, e/pertise, an& resources to &e)iver them. +he automate as man functions as possib)e, even as ensuring retains contro). #!$% c)aims that the are the peop)e to ta)k to if an one ,ants the fo))o,ing> 1 8)oba) cash f)o, co1or&ination 9nhance& risk management -mprove& securit an& au&it contro)s Minimi<e& costs an& re&uce& operating e/penses Ma/imi<e& )i.ui&it , returns an& interest benefits

$-* G!1u Bu4.0e44 8!.0c. 7e4 a05 Va7ue

+he #!$% 8roup is committe& to Five Core Business Principles: 'utstan&ing customer serviceC 9ffective an& efficient operationsC !trong capita) an& )i.ui&it C %onservative )en&ing po)ic C !trict e/pense &iscip)ineC #!$% 'perates Accor&ing to %ertain Key Business alues: +he highest persona) stan&ar&s of integrit at a)) )eve)sC

108

 %ommitment to truth an& fair &ea)ingC #an&1on management at a)) )eve)sC 'pen) esteeme& commitment to .ua)it an& competenceC A minimum of bureaucrac C 7ast &ecisions an& imp)ementationC Putting the 8roup=s interests ahea& of the in&ivi&ua)=sC +he appropriate &e)egation of authorit ,ith accountabi)it C 7air an& ob0ective emp)o erC A merit approach to recruitment, se)ection, promotionC Promotion of goo& environmenta) practice an& sustainab)e &eve)opment an& commitment to the ,e)fare an& &eve)opment of each )oca) communit . #!$%=s reputation is foun&e& on a&herence to these princip)es an& va)ues. A)) actions taken b a member of #!$% or staff member on beha)f of a 8roup compan shou)& conform to them.

108

C<A8TER %: OVERVIEW OF <SBC IN BANGLADES<

%-# <SBC Ba0/7a5e4h
+he #!$% 8roup is represente& in $ang)a&esh b its #ea& 'ffice in Dhaka

4!onargaon Roa&5, a secon& fu))1service branch in %hittagong 4Agraba&5 an& t,o booths in 8u)shan ( Moti0hee) ,ith a vision to satisf its customer ,ith high .ua)it service that ref)ects its g)oba) image as the premier -nternationa) $ank. +he $ank has recent) opene& another branch in Dhanmon&i. +he $ank has been serving customers in $ang)a&esh since 1HH3. -t has a)so an 'ffshore $anking Unit, ,hich provi&es banking services for foreign companies base& in the 9/port Processing Rones in Dhaka an& %hittagong. -n !eptember 1HHH, it intro&uce& A+M an& te)ephone banking for Persona) $anking. 7ive A+Ms )ocate& at the five branches, there are five off1site A+Ms )ocate& in Uttara, Dhanmon&i, $anani, !hantinagar an& 89% 4%hittagong5.

%-$ <SBC Ba0/7a5e4h O3e!3.e;

Na9e 12 the O!/a0.Dat.10 Yea! 12 E4tab7.4h9e0t <ea5 O22.ce Natu!e 12 the 1!/a0.Dat.10 Sha!eh175e!4 8!15uct4 +he #ong Bong !hanghai $anking %orporation $ang)a&esh :+D 1HH3 Anchor +o,er, 1O11$ !onargaon Roa& Dhaka 1202, $ang)a&esh Mu)tinationa) compan $ang)a&esh #!$% group shareho)&ers !avings ( &eposit services :oan pro&ucts ,ith subsi&iar group in

108

%orporate an& -nstitutiona) services Ma0a/e9e0t +ra&e services ( #e/agon M!- Sa0ja6 8!1=a4h %hief 9/ecutive 'fficer M!- E11 Ba=00e! #ea& of Persona) 7inancia) !ervices M!- A5.7 I47a9 #ea& of %orporate $anking M! A5.t6a Na!a6a0 S.0/h De1 #uman Resource Manager M!- Mu0.! <u44a.0 Marketing Manager M!- Wa4.9 A50a0 Wahe5 Nu9be! 12 O22.ce4 Nu9be! 12 ATMA4 Nu9be! 12 e9 716ee4 Tech0171/6 %hief 'perating 'fficer 1A 1J 1200S 'ffers fu)) on)ine banking from branch to branch an& from Dhaka to %hittagong. Se!3.ce C13e!a/e C Cu4t19e!4 !erves in&ivi&ua) an& corporate customers ,ithin Dhaka ( %hittagong.

#!$% $ang)a&esh current) provi&es services from t,o of its fu)) service branches one in Dhaka an& the other one in %hittagong. $esi&es these offices there are t,o persona) banking $ooth offices )ocate& at 8u)shan ( Moti0hee), an& a ne, branch opene& at ?ara angan0. +here is current) 1J A+M=s operating in Dhaka an& A in %hittagong.

%-% D.22e!e0t Act.3.t.e4 12 <SBC .0 Ba0/7a5e4h

As one of the )argest internationa) banks in $ang)a&esh, #!$% has a )ong1term commitment to its customers an& provi&es a comprehensive range of financia) services> persona), commercia) an& corporate bankingC tra&e servicesC cash managementC treasur C consumer ( business financeC an& securities, an& custo& services.

108

8e!410a7 Ba0=.0/ Se!3.ce4: +he #ongkong an& !hanghai $anking %orporation :imite& offers a fu)) range of persona) banking pro&ucts an& services &esigne& to take care of its customers= gro,ing nee&s an& re.uirements. #!$% in $ang)a&esh has )aunche& a number of )oan pro&ucts &uring 2000. Personal !nstall"ent #oan is an unsecure& )oan that &oes not re.uire an persona) guarantee or cash securit C Car #oan, a)so, &oes not re.uire an &o,n pa ment or persona) guarantee. +he $ank has a)rea& )aunche& 8h10e ba0=.0/, a state1of1the1art automate& te)ephone banking service avai)ab)e 2L hours a &a , J &a s a ,eek, an& 365 &a s a ear, ,hich a))o,s customers to access their account from the comfort of the office or home. #!$% is the market )ea&er in the )oca) $uto pay service ,ith ,hich the compan can initiate bu)k +aka pa ments to, or +aka co))ections from, an #!$% current or savings accounts of counterparts for a specifie& sum at a specifie& &ate, regar&)ess of the branch. #!$% a)so offers Po%er vantage, a uni.ue a))1in1one package of pro&ucts an& services &esigne& to give tota) financia) contro) to the customerC a uni.ue savings account, ,hich a))o,s the customer to &o an number of transactions ,ithout an charges being incurre& or cre&it interest )ost. +o satisf the gro,ing nee&s of rea) estate #!$% $ang)a&esh recent) )aunche& Ho"e #oan !cheme an& a specia) t pe of &eposit pro&uct name& "$ang)a&esh -nternationa)* for non1 resi&ent $ang)a&eshi. C1! 1!ate Ba0=.0/ Se!3.ce4: +he #ongkong an& !hanghai $anking %orporation :imite& offers a ,i&e range of cash financing, ,orking capita), short an& me&ium1term )oans an& guarantee faci)ities from its #ea& 'ffice an& %hittagong branch. +he 'ffshore $anking Unit 4'$U5 provi&es U! Do))ar &enominate& ,orking capita) as ,e)) as short1term finance for capita) imports to e)igib)e businesses. Using high1spee& communication )inks, #!$% connects customers to internationa) pa ment s stems. T!a5e Se!3.ce4: As the )ea&ing provi&er of tra&e finance an& re)ate& services to importers an& e/porters in Asia, #!$% in $ang)a&esh operates a high) automate& tra&e1processing net,ork an& offer an 9)ectronic Data -nterchange 49D-5 capabi)it through <e:a/10. +he $ank a)so uses SWIFT, an efficient an& secure mechanism for bank1to1bank g)oba) 108

communications use& for a)) tra&e re)ate& activities inc)u&ing fun& transfers an& issuance of D%=s 4Documentar %re&it5. F.0a0c.a7 I04t.tut.104: #!$% provi&es g)oba) tra&e services an& cash management services to )oca) banks. #!$%=s ,or)&,i&e net,ork strength, ,ith over J000 offices in 81 countries an& territories, coup)e& ,ith a ,or)& c)ass reputation in +ra&e 7inance 4"$est +ra&e Documentation $ank* F 9uro mone 5 an& an unpara))e)e& presence in Asia 4"$est $ank in Asia* Q 9uro mone 5, p)aces #!$% in an i&ea) position to ren&er unmatche& correspon&ent banking services. #!$%=s comman&ing presence in the U!A 42th )argest U!D c)earing bank g)oba)) 5, UB 4)argest 8$P c)earing bank g)oba)) 5, an& the 9uro )an& 4)argest 9uro c)earing bank in the UB5 both in terms of net,ork strength an& c)earing abi)it a))o,s the $ank to provi&e first c)ass cash management so)utions in A ma0or g)oba) currenciesC U! &o))ar, Poun& ster)ing, an& the 9uro. 8a69e0t4 a05 Ca4h Ma0a/e9e0t >8CM?: #!$% is the pioneer in intro&ucing e)ectronic cash management so)utions in $ang)a&esh, b intro&ucing its state1of1the1art proprietar soft,are, #e/agon, back in 1HHJ. +his ,as initia)) ma&e avai)ab)e to corporate c)ients on) but has since been e/pan&e& to inc)u&e banks an& retai) c)ients. 6ith #e/agon, the $ank=s proprietar cash management s stem, corporate customers can access banking services from an ,here in the ,or)& to vie, account ba)ances an& statements, make transfers an& internationa) pa ments, an& to open &ocumentar cre&its, b using on) a P%, a mo&em, an& a te)ephone )ine.

108

C<A8TER &: AN OVERVIEW OF FUNCTIONAL DE8ARTMENTS

&-# Ma0a/e9e0t 12 <SBC Ba0/7a5e4h

#!$% $ang)a&esh is such a compan that has to overcome a )ot of hur&)es to reach the position it no, ho)&s. At present, Mr. Mr. !an0a Prokash is the %9'C Mr. A&i) -s)am is the chief of %orporate $ankingC Mr. A&nan 6ahe& is %'', Mr. Goo baknner is the %hief of Persona) $anking or as kno,n in #!$%, Persona) 7inancia) !ervices 4P7!5 #ea&, an& Mr. Mr A&it a ?ara an !ingh Deo is the #uman Resource Manager at #!$% $ang)a&esh. +hese five men at the top carrie& out their management ro)es comprehensive) an& s stematica)) . +he e.ua)) contribute& to #!$%=s superior )ea&ership, b carr ing out their uni.ue ro)es. +he ,orke& ,e)) together, respecting each other=s abi)ities, ( arguing open) , ( ,ithout an resentment ,hen the &isagree&. +o maintain a c)ose touch ,ith the organi<ation each man ,orks in separate area of #!$%=s comp)e/. +heir offices are in&istinguishab)e from a)) other cubic)es ,here #!$%=s 0unior e/ecutives ( secretaries ,ork in. +here are no office ,a))s in #!$% an& a)) the staff starting from the %9' to the )o,er operating )eve) emp)o ees shares the same premises un&er one roof. +here are no specia)i<e& cabins for top management an& e/ecutives an& a)so no e/ecutive &ining rooms. +his has create& a management team that is unifie&, cohesive, ( energetic. 9ach an& ever emp)o ee of #!$% takes pri&e of being an emp)o ee at #!$% an& his or her pri&e comes from the free&om of &irect communication ,ith the top management. +he management of #!$% is supportive in the sense that the top management &e)iberate) supports the suggestions, va)ues, i&eas, innovation, an& har& ,ork of the emp)o ees an& officers. Again high amount of emp)o ee participation is encourage& in the management process. +here are a)so s stems for a,ar&s, incentives, an& status for innovative i&eas an& har& ,orks. Again the management st )e can a)so be terme& as co))egia) as high amounts of team,ork an& participation e/ists bet,een the top an& bottom parts of #!$%. #!$% fo))o,s a L )a ers management phi)osoph in $ang)a&esh. +hese are Managers, 9/ecutives, 'fficers, an& Assistant 'fficers. +he %9' is the top most authorit of a)) 108

the )eve)s. Managers are the &epartmenta) hea&s ,ho are responsib)e for the activities of their &epartments. +he are the hea&s of the &epartment ,ho formu)ate strategies for that &epartment. e.g. #uman Resources Manager. 9/ecutives have the authorit ne/t to managers. +he are basica)) responsib)e for certain activities ( organi<ationa) functions. e.g. A&min 9/ecutive. +hese t,o )a ers represent the management )eve) of #!$% $ang)a&esh. 'fficers are the ne/t persons to stan& in the hierarch )ist. +he are the t pica) mi&1 )eve) emp)o ees of #!$% organi<ationa) hierarch . +hese officers are responsib)e for managing the operationa) activities an& operating )eve) emp)o ees. +he operating )eve) emp)o ees of #!$% ,ho are ranke& as Assistant 'fficer fi)) the )ast )a er of this hierarch . +he perform the &a 1to1&a operationa) activities of #!$%. An organi<ationa) hierarch chart is sho,n be)o,>

Managers

Executives

Officers

Assistant Officers F./u!e &: O!/a0.Dat.10a7 <.e!a!ch6

&-$

Ch.e2 E:ecut.3e C199.ttee

108

F./u!e ': Ch.e2 E:ecut.3e C199.ttee +he organi<ationa) structure of #!$% $ang)a&esh is &esigne& accor&ing to the various service an& functiona) &epartments. +he %hief 9/ecutive 'fficer 4%9'5 hea&s the chief e/ecutive committee, ,hich &eci&es on a)) the strategic aspect of #!$%. +he %9' is the person ,ho supervises the hea&s of a)) the &epartments an& a)so is the u)timate authorit of #!$% $ang)a&esh. #e is responsib)e for a)) the activities of #!$% $ang)a&esh an& a)) its conse.uences. #e a&ministers a)) the functiona) &epartments an& communicates ,ith the &epartment hea&s for smooth functioning of the organi<ation. +he #!$% %hief 9/ecutive %ommittee is forme& ,ith the hea&s of a)) &epartments a)ong ,ith the %9'. $esi&es the %9' the %9% is staffe& ,ith 3 more managers> Ma0a/e! 12 <u9a0 Re41u!ce4@ Ma0a/e! 12 Se!3.ce4@ a05 Ma0a/e! 12 F.0a0c.a7 C10t!17 De a!t9e0t@ Ch.e2 12 8e!410a7 Ba0=.0/@ Ch.e2 12 C1! 1!ate Ba0=.0/@ a05 Ma0a/e! 12 Ma!=et.0/-

&-%

Fu0ct.10a7 De a!t9e0t4 12 <SBC

#!$% activities are performe& through functiona) &epartmenta)i<ation. !o, the &epartments are separate& accor&ing to the functions the perform 4#R, Marketing, Persona) $anking, etc.5. +here are 3 ma0or functiona) &epartments at #!$%> #uman Resources Department, 7inancia) %ontro), Persona) $anking, %orporate $anking an& Marketing. 6ithin these ma0or &epartments there are some other subsi&iar &epartments that a))o, smooth operation of their o,n ma0or &epartmenta) function. A graphica) presentation of a)) the &epartments 4Ma0or ( minor5 is sho,n be)o,. $rief functiona) &escriptions of these &epartments are1

108

Ch.e2 E:ecut.3e O22.ce! >CEO?

<u9a0 Re41u!ce4

Se!3.ce4

F.0a0c.a7 C10t!17

8e!410a7 Ba0=.0/

C1! 1!ate Ba0=.0/

Ma!=et.0/

A59.0.4t!at.10

A59.0.4t!at.10

F1!e./0 C1!!e4 105e0ce 8a69e0t

DAK B!a0ch

T!a5e Se!3.ce4

D.!ect Sa7e4

De3e71 9e0t

IT

Ch.tta/10/ B!a0ch Dha09105. B!a0ch M1t.jhee7 B11th

I04t.tut.10a7 Ba0=.0/ <e:a/10

8!191t.10

I0te!0a7 C10t!17 >IC? Net;1!= Se!3.ce Ce0te! >NSC? <UB

T!ea4u!6

Ma!=et.0/ A59.0.4t!at.10

8CM

Gu74ha0 B11th C!e5.t De a!t9e0t B105@ ATM C ATB

F./u!e (: Fu0ct.10a7 De a!t9e0t4 12 <SBC

&-&

<u9a0 Re41u!ce De a!t9e0t ><R?

+he #uman Resource Manager current) hea&s this &epartment. +he ma0or functions of this &epartment are strategic p)anning an& po)ic formu)ation for %ompensation, Recruitment, Promotion, +raining, an& Deve)opments, Personne) !ervices, an& !ecurit . +he #R &epartment is ver much concerne& ,ith the &iscip)ine that is set up 108

b the #!$% group. #!$% group has got strict ru)es an& regu)ations for each an& ever aspect of banking, even for non1banking purposesC i.e. the Dress %o&e. A)) these ma0or personne) functions are integrate& in the best possib)e ,a at #!$%, ,hich resu)ts in its higher pro&uctivit . +he #uman resource officer monitors the emp)o ee staffing an& a&ministration activities. +he +raining officer supervises training, &eve)opment, ( rotation activities. +he structure of the #R &epartment is sho,n be)o,>

<u9a0 Re41u!ce Ma0a/e!

<u9a0 Re41u!ce O22.ce!

De3e71 9e0t O22.ce!

AO Sta22.0/

AO A59.0.4t!at.10

AO T!a.0.0/

AO !a.4a7

F./u!e ): St!uctu!e 12 <u9a0 Re41u!ce De a!t9e0t #!$% activities are performe& through functional depart"entali&ation!o, the

&epartments are separate& accor&ing to the functions the perform. 6ithin the ma0or &epartments there are some other subsi&iar &epartments that a))o, smooth operation of their o,n ma0or &epartmenta) functions.

&-' 8e!410a7 F.0a0c.a7 Se!3.ce4 >8FS?

P7! is the most f)ourishing &epartment of #!$% $ang)a&esh. +his &epartment basica)) &ea)s ,ith the management of pro&ucts an& services offere& to the in&ivi&ua) consumers. 6ithin a span of on) five ear #!$% P7! has gro,n tremen&ous) an& is sti)) gro,ing ,ith its innovative pro&ucts an& service offerings. +he A branches an& 2 booths of #!$% basica)) &ea) ,ith the persona) banking activities an& provi&e various

108

accounts services to in&ivi&ua) customers. +he &epartments un&er P7! are sho,n in the fo))o,ing &iagram>
8FS <ea5

Ma0a/e! B105 C ATM

Ma0a/e! CCR

Ma0a/e! 8!15uct

Ma0a/e! B!a0che4

Ma0a/e! Sa7e4

Ma0a/e! ATB

E:ecut.3e B105 C ATM

E:ecut.3e A !13a7 C O e!at.104

E:ecut.3e 8!15uct

E:ecut.3e MIS

E:ecut.3e ATB

O22.ce! B105

O22.ce! ATM

O22.ce! ATB

O22.ce! O e!at.104

O22.ce! C177ect.10

O22.ce! MIS

M1b.7e Sa7e4 O22.ce!4

CSM DAK B!a0ch

CSM Ch.tta/10/ B!a0ch

CSM Dha09105. B!a0ch

CSM M1t.jhee7 B11th

CSM Gu74ha0 B11th

B!a0ch Sta22 Tea9

B!a0ch Sta22 Tea9

B!a0ch Sta22 Tea9

B!a0ch Sta22 Tea9

B!a0ch Sta22 Tea9

F./u!e *: St!uctu!e 12 8e!410a7 F.0a0c.a7 Se!3.ce4 De a!t9e0t

O e!at.104: Manages &ai) operation P)ans an& &irects sa)es an& marketing P)ans for service &eve)opment +op1)eve) authorit for customers= &ea)ings an& transaction Provi&es re.uire& service to the customers &irect) 108

Maintains &ocumentation an& report f)o, var rapi&) #e)ps in p)anning at fie)& )eve) Assists P7! #ea& in &ecision1making process an& researches Assists P7! #ea& &a 1to1&a ,ork Beeps track an& inform P7! #ea& in present con&ition of the competition in the market.

&-(

B!a0ch Net;1!=

+here are thirteen branches of #!$%, +en situate& at &ifferent )ocations in Dhaka an& three at %hittagong. 'n) the Dhaka office 4hea& office5 ( %hittagong branch &ea)s ,ith both corporate an& persona) banking. 'ther three offices on) &ea) ,ith the persona) banking activities. +heir functions are to provi&e various financia) services to the consumers. +hese inc)u&e customer services, sa)e of various P7! pro&ucts, opening ne, accounts, provi&ing cash, remittance, an& other te))er services, etc. +he branches are .uite &ecentra)i<e& for better &e)iver of services to customer an& have their o,n premises an& faci)ities. $ranch managers hea& these branches. 9ach branch is staffe& ,ith its o,n team of emp)o ees. A great &ea) of team,ork is seen ,ithin these branches. A+M=s are situate& ,ith each branch premises.

CSM DAK B!a0ch

E:ecut.3e >CSO? F!10t O22.ce

E:ecut.3e >CSO? Bac= O22.ce

O22.ce!4 F!10t O22.ce

O22.ce!4 Bac= O22.ce

108

F./u!e +: B!a0ch Net;1!=

&-)

C!e5.t De a!t9e0t

+he persona) banking cre&it &epartment &ea)s ,ith the consumer cre&it schemes such as the Persona) )oan, %ar )oan, +rave) :oan, Persona) !ecure& )oan, etc. ,hich are tai)ore& to meet the &eman& of in&ivi&ua) customers. +he manager of P7! cre&it ,ho approves an& a&ministers a)) the activities of this &epartment. #e is staffe& ,ith five approva) officers, four operations officers, an& t,o M-! officers. +he approva) officers main) re0ect or approve the cre&it re.uests. After being checke& b the approva) officer, the cre&it re.uests go to the operations for further processing of the app)ication an& &isbursement. +his &epartment is a member of A:%' 4Asset :iabi)it Management %ommittee5, ,hich coor&inates in preparation of )en&ing ana) sis an& &ata on concentration of risk an& i&entifies possib)e )en&ing risks. +his &epartment is a)so responsib)e for monitoring a)) necessar &ocuments an& securities re)ate& to )oans.

&-*

ATM Ce0te!

+he A+M center ensures smooth operation of the A+M machines that are )ocate& at Dhaka an& %hittagong. +he A+M center is responsib)e for regu)ar rep)enishment of the off1site A+M=s an& servicing of a)) the A+Ms. %urrent) a tota) 1J A+Ms are in operation. +he A+M center a)so &ea)s ,ith issuance, termination, an& servicing of the A+M car&s. 'n a ,ho)e, the A+M center is the &epartment that is so)e) responsib)e for a)) the activities re)ate& to A+M an& is the faci)itating &epartment that enab)es customers 2L hours banking support.

&-+

B105 De a!t9e0t

+his &epartment is un&er the same manager as the A+M center. +he basica)) &ea) ,ith a)) the bu ing an& se))ing of government bon&s an& treasur bi))s as per customer instruction, i.e. $!P, P!P, an& +!P etc. +his &epartment keeps un&er its contro) the transactions regar&ing U!D$, U!D-$, an& 69D$.

108

&-#, ATB Ce0te!

A+$ refers to Automate& +e)e $anking. +his &epartment &ea)s ,ith the back office serving the #!$% phone banking services provi&e& to customers. +his &epartment is basica)) responsib)e for the activation of A+$, A+$ pin generation, an& A+$ securit management, A+$ b)ocking an& troub)eshooting of a)) A+$ prob)ems. +his &epartment ,as constructe& on Ganuar e/ecutive an& t,o officers. 2000. %urrent) this &epartment is staffe& ,ith t,o

&-## C1! 1!ate Ba0=.0/

+his &ivision if #!$% provi&es financia) services to organi<ationa) 4corporate5 c)ients. #!$% is a ,or)&,i&e )ea&er in banking an& financia) services ,hose success is base& on its re)ationships ,ith its corporate c)ients. 6hether it is )oca)) or aroun& the ,or)&, #!$% offers a comprehensive range of services that can be tai)ore& to the in&ivi&ua) nee&s of the compan . +he #ea& of this &epartment is the %hief of %orporate $anking. #e is a)so the ;ice1%9' of #!$% $ang)a&esh. +he chief of %orporate $anking manages the activities of corporate banking of #!$% $ang)a&esh. +,o offices of #!$% $ang)a&esh offer corporate banking services to corporate c)ients. +hese are the Dhaka #ea& 'ffice an& %hittagong office. %orporate $anking of #!$% $ang)a&esh inc)u&es %orporate -nstitutiona) $anking 4%-$5, #!$% +ra&e !ervice 4#+;5, an& #e/agon. +hese sub1&ivisions are &iscusse& brief) in the fo))o,ing sections.

&-#$ C1! 1!ate I04t.tut.10a7 Ba0=.0/ >CIB?

As their ma0or customers operate internationa)) , #!$% services them internationa)) . 'perating through the ma0or centers an& in c)ose )iaison ,ith #!$% -nvestment $ank, %orporate an& -nstitutiona) $anking provi&es the fu)) range of the 8roupEs capabi)ities at )oca) an& g)oba) )eve)s, ,ith a particu)ar focus on pa ments an& cash management, tra&e, an& securities custo& . #!$% a)so offers )oca) financia) institutions an& banks access to ,i&e range of financia) services avai)ab)e on an internationa) basis. +he services are tai)ore& to suit the nee&s of the companies. %-$ has t,o separate ,ings> Re7at.104h. 9a0a/e9e0t 5e a!t9e0t a05 <e:a/10. +hese are &iscusse& be)o,> Re7at.104h. Ma0a/e9e0t De a!t9e0t:

108

+he RM &epartment consists of various re)ationship managers ,ho are assigne& to &ifferent corporate c)ient to better satisf their nee&s. +hese RM=s communicate ,ith the c)ients an& are so)e) responsib)e for the companies the &ea) ,ith. An information regar&ing a corporate c)ient must be communicate& through the respective RM assigne& to that corporate c)ient. A re)ationship manager ma be assigne& more than one compan an& this &ecision &epen&s on the chief of %orporate $anking. <e:a/10: +he #e/agon &epartment &ea)s ,ith a)) aspects re)ate& to #!$%=s uni.ue banking soft,are pro&uct 1 #e/agon. -t is the g)oba) 9)ectronic $anking s stem of #!$%, ,hich offers the customers more convenient an& efficient banking than ever before. -t is an innovative &esktop banking s stem &eve)ope& b the #!$% group, ,hich operates via the group=s proprietar ,or)&,i&e communications net,ork.

&-#% <SBC T!a5e Se!3.ce4 ><TV?

+ra&e service is kno,n b various names in other banks, e.g. +ra&e 7inance 7oreign 9/change, 7oreign +ra&e etc. #o,ever, the functions are the same. As the name suggests, this &epartment is invo)ve& in faci)itating tra&e, both internationa) ( ,ithin $ang)a&esh. #!$% is the )ea&ing provi&er of tra&e finance an& re)ate& services to importers an& e/porters in Asia. +ra&e is consi&ere& a core business of the group. +he group=s presence in 81 countries of the ,or)& gives a goo& opportunit to contro) both en&s of a tra&e transaction an& keep the business ,ithin the 8roup. +he various a,ar&s it has ,on from the )ea&ing pub)ications of the ,or)& ackno,)e&ge #!$%=s e/ce))ence in tra&e. +he tra&e service &epartment has t,o separate subsi&iaries> C!e5.t A59.0.4t!at.10 C F1!e./0 E:cha0/e D.3.4.10C!e5.t A59.0.4t!at.10: %re&it A&ministration &epartment basica)) &ea)s ,ith a)) the &ocumentation,

processing, a&ministration, an& &isbursement of the import1e/port services provi&e& to corporate c)ients. +his &epartment is kno,n to be the heart of #!$% tra&e services that a&ministers an& manages a)) the tra&e too)s an& faci)ities provi&e& b #!$% %orporate $anking. !ome important aspects of this &epartment are :% a&vising, &ocumentation, 'D faci)ities, guarantees, etc. 108

F1!e./0 E:cha0/e D.3.4.10: +he 7or1e/ &ivision of tra&e services is so)e) concerne& ,ith the management of 7oreign e/change inf)o, an& outf)o,. +he 7or1e/ &ivision of tra&e service in re)ation ,ith ?!% an& 7%D manages the foreign currenc traffic of #!$% that originates from %orporate $anking an& tra&e services.

&-#& F.0a0ce De a!t9e0t 12 <SBC Ba0/7a5e4h

+his is consi&ere& as the most po,erfu) &epartment of #!$%. -t keeps tracks of each an& ever transaction ma&e ,ithin #!$% $ang)a&esh. Manager of 7%D ,ho ensures that a)) the transactions are ma&e accor&ing to ru)es an& regu)ation of #!$% 8R'UP hea&s it. ;io)ation of such ru)es can bring serious conse.uences for the )a,breaker. 7%D is responsib)e for the preparation of the Annua) 'perating P)an 4A'P5, monitoring treasur risk )imits, profit e/posure, an& maintaining strong )i.ui&it . 7%D is the ke member of the Asset :iabi)ities Management %ommittee 4A:%'5, ,hich &ea)s ,ith ho, efficient) the bank=s assets an& )iabi)ities are manage&. 7%D a)so &ea)s ,ith mone market matters. 7%D acts as a custo&ian of a)) vouchers. 7%D as the name imp)ies &oes a)) the banks monitoring of the banks interna) comp)iance an& a)) )oca) regu)ator re.uirements. +he functions of 7%D are brief) &iscusse& be)o, a)ong ,ith an organogram of the &epartment>
Ma0a/e! FCD

E:ecut.3e@ FC

E:ecut.3e@ T!ea4u!6

E:ecut.3e@ 8a69e0t4

E:ecut.3e@ Ca4h Ma0a/e9e0t

O22.ce!@ Acc1u0t4

O22.ce!@ F.0a0c.a7 C10t!17

O22.ce! 8a69e0t4

O22.ce!@ Fu05 Ma0a/e9e0t

O22.ce!@ A59.0.4t!at.10

O22.ce!@ I0"h1u4e 8CM

O22.ce!@ Out";a!5 OCM

108

F./u!e #,: F.0a0ce De a!t9e0t

&-#' F1!e./0 C1!!e4 105e0ce >FC?

7% keeps recor&s of a)) the accounts of #!$%. A)) the vouchers, notes, a&vices an& transaction reports of the branches are sent to 7% for recor& keeping purposes. 7% a)so prepares the financia) statements for the banks an& &eci&e& upon banks assets an& )iabi)ities. -t a)so &ea)s ,ith the returns that are submitte& to the %entra) $ank on regu)ar interva).

&-#( Se!3.ce4 De a!t9e0t 12 <SBC

+his is an integra) an& vita) part of the bank. +he services &epartment ensures smooth operation an& functioning ,ithin an& bet,een a)) the &epartments of #!$%. -t a)so provi&es continuous support to the core banking activities of #!$%. +he Manager of !ervices hea&s this &epartment ,ho formu)ates an& manages various critica) issues of the services function of #!$%. #e is fo))o,e& b a group of e/ecutives ,ho are the hea&s of various subsi&iar &ivisions that operate ,ithin the services &epartment. +he services &epartment is consi&ere& as the backbone of a)) other &epartments. +he various subsi&iar &ivisions ,ithin this &epartment are A&ministration, -+, -nterna) %ontro) 4-%5, ?et,ork !ervices %enter 4?!%5, an& #U$.
Ma0a/e! Se!3.ce4

A structure of the services

&epartment is presente& be)o, fo))o,e& b a briefing of the subsi&iar &ivisions>

E:ecut.3e A59.0.4t!at.10

E:ecut.3e@ IT

E:ecut.3e I0te!0a7 C10t!17

E:ecut.3e@ NSC

E:ecut.3e <UB

O22.ce! BSS

O22.ce! Ge0e!a7 A59.0

O22.ce! I0te!0a7 C10t!17

O22.ce! <UB

O22.ce! S64te9 A59.0

O22.ce! S64te9

O22.ce! Re9.tta0ce4

O22.ce! Net;1!= Se!3.ce4

108

F./u!e ##: Se!3.ce4 De a!t9e0t

&-#) I021!9at.10 Tech0171/6 >IT?

+his &epartment gives the soft,are an& har&,are supports to &ifferent &epartments of the bank. As #!$% is engage& in on)ine banking, the ro)e of -+ is ver crucia) for the bank. +his &epartment is the most active &epartment of #!$% ,here emp)o ees a),a s stan& b to so)ve an prob)ems in the s stem. +he managers an& e/ecutives of -+ &ivision ,ork continuous) to &eve)op the tota) -+ s stem of #!$% so that it can be operate& ,ith ease, accurac , an& spee&.

&-#* Net;1!= Se!3.ce4 Ce0te! >NSC?

+his &epartment can be &escribe& as the TPo,er #ouse= of #!$% $ang)a&esh. ?!% &oes the back office 0ob for the bank. +he main four 0obs that are performe& b ?!% are %)earing, !canning of signature car&s, issuing checkbooks, an& sen&ing ( receiving Remittances. ?!% )ooks after the c)earing process of #!$% an& makes necessar contact ,ith the centra) bank for maintaining account f)o,s. A)) the customer signatures are scanne& in this &epartment an& are entere& into the s stem. ?!% a)so issues checkbooks for ne, an& o)& accounts base& on re.uisition from various branches. TRemittance= is a banking term, ,hich means T+ransfer of fun&s through banks=. 6hen a bank remits on beha)f of its customers, it is terme& as out,ar& remittance. 'n the other han&, ,hen the bank receives the remittance on beha)f of the bank, it is in,ar& remittance. +he fo))o,ing metho&s that ?!% uses to remit mone for customers> +e)egraphic +ransfer 4++5, Deman& Draft 4DD5, ( %ashier=s 'r&er.

&-#+ Ma!=et.0/ De a!t9e0t

+he si/th ma0or &epartment of #!$% is the marketing &epartment. +he marketing &epartment of #!$% p)a a vita) ro)e in fostering the continuos gro,th #!$% in $ang)a&esh. A manager is assigne& to this &epartment ,ho )ooks after the overa)) marketing operation of #!$% in $ang)a&esh. +his &epartment is basica)) concerne&

108

about marketing the compan =s pro&ucts, services, an& bui)&ing a strong corporate image. +he marketing &epartment of #!$% has three sub&ivisions> D.!ect Sa7e4@ 8!191t.10@ C Ma!=et.0/ A59.0.4t!at.10-

Ma0a/e! Ma!=et.0/

E:ecut.3e@ D.!ect Sa7e4

E:ecut.3e@ 8!191t.10

E:ecut.3e@ Ma!=et.0/ A59.0.4t!at.10

O22.ce!@ Sa7e4 A59.0.4t!at.10

<SBC M1b.7e Sa7e4 Tea9

O22.ce!@ 8ub7.c Re7at.104

O22.ce!@ A53e!t.4.0/

O22.ce!@ RCD

O22.ce!@ B.77.0/ C A59.0

F./u!e #$: Ma!=et.0/ De a!t9e0t

&-$, O3e!3.e; 12 8!1ce44

%ustomer e/ecutes Master Murabaha an& 6aka)a agreement, the omnibus +rust Receipt an& the Promise to Purchase &ocuments ,hich sets the frame,ork a)ong ,ith 7aci)it 'ffer :etter 7aci)it !et up D% app)ication a)ong ,ith Purchase +ransaction ?otice p)ace& to $ank $ank opens D% ,ith specific set of con&itions 9/porter Prepares goo&s an& notifies app)icant %ustomer submits the Murabaha +ransaction ?otice 4M+?5 to $ank

108

 9/porter ships goo&s an& sen&s &ocument to $ank #!$% accepts M+? before or at )east on the &a are receive&. %ustomer provi&es acceptance of &ocuments after revie,ing them at the $anks counter. A ?e, $i)) a&vice is sent, an& if there are an &iscrepancies, customer must accept this or the D% amen&e&. -f &ocuments are in or&er but the customer &oes not provi&e the M+? or &oes not ,ish to pa , the RM to be referre& an& the conventiona) proce&ures to be fo))o,e&. #!$% retires bi)) b creating %:- or %ustomer Account Debit an& en&orses &ocuments in the name of the customer. %ustomer retires the %:- b pa ing the pre agree& amount e.ua) to $i)) ;a)ue S Profit. the

&ocuments are receives. %ustomer is a&vise& that &ocuments

&-$# T!a5e Se!3.ce4 O e!at.104

Ne; 8!15uct C15e4 21! <SBC A9a0ah I9 1!t F.0a0ce a!e: $"anah !"port Finance Product Code 'escription -s)amic !ight Doc %re&it -s)amic Usance Doc %re&it -s)amic !ight D%. 4$ack to $ack5 -s)amic $i)) Receivab)e -s)amic !hipping 8uarantees -s)amic Air,a $i)) Re)ease -s)amic %)ean -mport 7inance

D%D-8 D-$ -$R !-8 A6%:-

A)though the above ,i)) support a fu)) range of D% an& re)ate& pro&ucts, ,e ,i)) be using on) D%-, -$R, !-8, A6- an& %:- for the time being.

108

&-$$ C199u0.cat.10 ;.th Cu4t19e!4

Ne3e! 4a6 F.0te!e4tG 1! F71a0G t1 a0 A9a0ah Cu4t19e! 7or FI0te!e4tG use F8!12.tG 7or FL1a0G use FF.0a0c.0/G

%#AP+9R 2> PR'DU%+! ( !9R;-%9!

#!$% $ang)a&esh carries out a)) tra&itiona) functions, ,hich a commercia) $ank performs such as mobi)i<ation of &eposit, &isbursement of )oan, investment of fun&s, financing e/port ( import business, tra&e ( commerce ( so on. $esi&es it a)so offers some specia)i<e& services to its customers. Pro&ucts ( services offere& b #!$% can be categori<e& accor&ing to the customers the serve. +hus t,o ma0or groups can be i&entifie&. +he are F in&ivi&ua) customers or consumers ( corporate customers or organi<ations. An in1&epth ana) sis of #!$%=s pro&uct an& services in $ang)a&esh is presente& in this section. 7irst of a)), the )iabi)it pro&ucts of the bank are &iscusse&. After that the various pro&ucts an& services of persona) banking &ivision ,i)) be presente&, fo))o,e& b a brief &iscussion of the corporate banking services offere& to corporate c)ients. +he summar of a)) the pro&ucts an& services of #!$% $ang)a&esh is &isp)a e& in the fo))o,ing page.

108

'-# Acc1u0t4
Sa3.0/4 Acc1u0t4: Ma/imi<e ,ea)th ,ith &ai) interest1 Un)ike other banks there is no )e&ger fee an& an interest accrue& is not )ost %ustomers can issue an number of che.ue or ,ith&ra, an amount -nterest is ca)cu)ate& on &ai) ba)ance5 an& pai& ha)f ear) 'n) con&ition to earn interest is maintaining a minimum ba)ance of $D+ 22,000O1 Re)ationship fee is $D+ A00O1 per .uarter if average re)ationship fa))s be)o, $D+ 20,000O1 for three months. cre&it ba)ance 4not on average cre&it

Cu!!e0t Acc1u0t: +his is a)so a &epositor account basica)) &esigne& for various customers. +his is a non1 interest bearing accounts an& the features of this account are as fo))o,s> 'pening ba)ance +B 22,000 Average ba)ance that shou)& be maintaine&> +B 22,000 ?o restrictions on number of transactions ?o ear) )e&ger fee ?on interest bearing 7ree A+M car& an& phone banking service Documentation> various kin&s of &ocuments are nee&e& for the companies such as memoran&um of association, boar& reso)ution, etc. ho,ever the re.uirements for in&ivi&ua)s are same as the savings account. %an be opene& on) b >

108

 -n&ivi&ua)s 40oint or sing)e5 Proprietorship companies Partnership companies :imite& %ompanies :iaison offices ?8'=s

'-$

ATM Ca!5
%an be )inke& ,ith !avings or %urrent Account or both 2L #ours a &a from an one of the 1J #!$% A+M out)ets Ma/imum )imit $D+ 20,000O1 per &a per car&. 7or P;A A+M car& the ma/imum )imit is $D+ 20,000O1 per &a . Mou can ,ith&ra, or &eposit mone , in.uire about our ba)ance, check )ast 2 transactions, transfer fun&s bet,een our accounts an& make pa ments to other accounts ,ith #!$% Minimum $D+ 200O1 can be ,ith&ra,nC

'-%

81;e! Va0ta/e

7or tota) financia) contro)1 Average &eposit ba)ance shou)& be $D+ 2,00,000O1 Annua) fee $D+ 200O1 Pena)t charge $D+ 200O1 ha)f ear) , if the average &eposit ba)ance fa))s be)o, $D+ 2,00,000O1 7ree persona) acci&ent insurance coverage for $D+ 1,00,000O1 7ree en&orsement of foreign currenc against trave) .uota !pecia) Po,er ;antage A+M car& ,ith enhance& cash ,ith&ra,a) faci)it of $D+ 20,000O1 per &a An a))1in1one composite statement of a)) ;antage package our accounts un&er the Po,er

108

!pecia) )oan rages for the Persona) -nsta))ment :oan :o,er processing fee for %ar :oan 7ee ,aiver for setting up stan&ing instructions at Auto !,eep

'-&

T.9e De 14.t
Minimum amount to open a +MD is $D+ 1,00,000O1 4-n&ivi&ua) an& Goint both5 -nterest is pai& at maturit %umu)ative +ime Deposits 4Principa) S -nterest5 is a)so avai)ab)e Automatic ro)) over at prevai)ing rate +ime &eposit is offere& in +ime Perio& 4Minimum 1 month an& Ma/imum 12 months5 !tan&ing instruction can be given 4)ike cre&it interest to other accounts5 8e!410a7 Secu!e5 L1a0 F a )oan faci)it up to H0K of the va)ue of the :%M an& 80K of 7%M time &eposit for a ma/imum perio& of 2 ears 8e!410a7 Secu!e5 C!e5.t F an over&raft faci)it up to H0K of the va)ue :%M an& 80K of the time &eposit.

Sh1!t Te!9 De 14.t >STD?: +hese accounts are opene& most) b the organi<ations. 'rgani<ations norma))

maintain current accounts in the banks. +he nee& to transact bu)k amount regu)ar) that=s ,h , current account fits ,ith their re.uirements. As current accounts &o not provi&e an interests an& as the organi<ations cannot have savings account, the are &eprive& of earning an interest even though having huge &eposit in their accounts. T!hort1term &eposit= accounts enab)e them to earn interests from their accounts. +hese kin&s of accounts share some properties of both current an& savings accounts. +he account provi&es interests, ,hich are )ike the savings accounts, an& the ho)&er can ,ith&ra, an amount an time from his account that is a propert of the current account. -n&ivi&ua)s especia)) , businessmen a)so maintain such accounts.

108

F.:e5 De 14.t: -t is a)so kno,n as term &eposits. +hese &eposits are ma&e in the bank for a fi/e& perio& of time. +his perio& of time shou)& be specifie& in a&vance. +he bank nee&s not to maintain cash reserves against these &eposits ( therefore, it offers interest rates that are higher than the savings accounts. M10th76 I0te!e4t Bea!.0/ T.9e De 14.t: +he simp)e, safe, an& f)e/ib)e ,a to en0o guarantee& month) return1 Minimum opening amount is $D+ 2,00,000O1 4-n&ivi&ua) an& Goint both5 +enure> 112 ears -nterest is pai& at a month) basis an& is transferre& to another nominate& account Automatic ro)) over for the 2n& ear at prevai)ing rate.

'-'

E: at!.ate Acc1u0t
9/patriates can open norma) $D+ current AO% as ,e)) as 7%M current AO% 9/patriates can open convertib)e account if entit)e& to an& sub0ect to restrictions such as the can not &eposit taka in convertib)e AO% 7ree A+M car& is provi&e& to access to their accounts to ,ith&ra, +aka from current accounts 9/patriates can not earn interest on their $D+ or 7%M accounts 4Regu)ations of $ang)a&esh $ank5 9/patriates can not get an cre&it faci)ities 4Regu)ations of $ang)a&esh $ank5

'-(

N10"Re4.5e0t Ba0/7a5e4h. >NRB?

+here are some other accounts for non1 resi&ent $ang)a&eshi F1!e./0 Cu!!e0c6 Cu!!e0t Acc1u0t F1!e./0 Cu!!e0c6 T.9e De 14.t Acc1u0t

108

Re4.5e0t Ba0/7a5e4h. Re4.5e0t F1!e./0 Cu!!e0c6 Cu!!e0t Acc1u0t: 7eatures1 Accounts opene& from fun&s brought in ,hen returning from abroa& -f amount e/cee&s U!D A,000O1 or e.uiva)ent then customer must fi)) up &ec)aration form 7MG at the customs. +o be opene& ,ithin A0 &a s of return Minimum opening ba)ance is U!DO8$PO9UR' 1,000O1 An -nternationa) A+M car& giving access to their fun&s from 8,00,000O1 A+Ms ,or)&,i&e. 6ith&ra,a) in )oca) currencies. +he ba)ance of the account is free) remittab)e but no in,ar& remittance is a))o,e&. ?on1che.ueab)e account F che.uebook ,i)) not be issue&. %an take out the mone for further trave)ing ,ithout being sub0ect to an regu)ations.

F1!e./0 Cu!!e0c6 T.9e De 14.t Acc1u0t: 7eatures1 Accounts opene& from fun&s brought in ,hen returning from abroa& or b transferring from resi&ent 7%M account +o be opene& ,ithin A0 &a s of return Minimum opening ba)ance is U!DO8$PO9UR' 1,000O1 -nterest bearing time &eposit account ,ith maturities of 1, A, 3 an& 12 months

108

Persona) !ecure& %re&it O Persona) !ecure& :oan F an over&raft faci)it up to 80K of the va)ue of the foreign currenc time &eposit.

%hapter 3> :oans ( %re&its

(-# 8e!410a7 I04ta779e0t L1a0 >8IL?
An purpose )oan F no cash securit Minimum month) income $D+ 12,000O1, 2 ears service in a ,e)) repute&, stab)e compan , minimum age 22 an& ma/imum 23 ;a)i& income proof &ocuments must be furnishe&, unsecure& )oan, ( no persona) guarantee re.uire&

108

 Minimum )oan amount is $D+ 20,000O1 an& ma/imum )oan amount is $D+ 20,00,000O1 or L times of sa)ar -nterest rate ,i)) be 18K per annum Ma/imum )oan tenure is A3 months. -f )oan amount it $D+ L, 00,000O1 or above then ma/imum tenure is L8 months Auto Pa customers ,i)) get &iscounte& interest rate> 12.2K an& )oan amount> 3 times of sa)ar or 2 mi))ion ,hichever is )o,er %9P! customers ,i)) get &iscounte& interest rate> 12.2K an& )oan amount> 10 times of sa)ar or 2 mi))ion ,hichever is )o,er Persona) )oans ,i)) be grante& at &iscounte& rates to emp)o ees of b)ue chip companies against assignment of termina) benefits as per agreement ,ith emp)o er. :oan tenure ,i)) be up to 2 ears. 7or sa)arie& in&ivi&ua)s a&&itiona) income inc)u&ing rent ,i)) be consi&ere&, provi&e& these are substantiate& ,ith re.uisite &ocumentation or evi&ence. 7or businessmen the +-? certificate an& %-$ 4%re&it -nformation $ureau5 report ,i)) remain a man&ator &ocument for income verification. A current account nee&s to be opene& b the customer before app) ing for Persona) -nsta))ment )oan 4P-:5.

(-$

T!a3e7 L1a0

+rave) :oan is offere& ,ithin the e/isting Persona) -nsta))ment )oan structure. +he purpose of )aunching this pro&uct is to attract an& ai& customers ,ith their trave) re)ate& services. :oan amount is minimum )oan amount is $D+ 20,000O1 an& ma/imum )oan amount is $D+ 2,00,000O1 -nterest rate> 12K +enure> Ma/imum )oan tenure is A3 months. -f )oan amount is $D+ L,00,000O1 or above then ma/imum tenure is L8 months.

108

 :oan processing fee> 1K of the )oan amount or $D+ 1,000O1 ,hichever is higher S stamps $D+ 1J0O1 ?o persona) guarantee is re.uire&

(-%

Ca! L1a0
9)igibi)it 1 minimum month) income $D+ 20,000O1, 2 ears service in a ,e)) repute&, stab)e compan , minimum age 22 an& Ma/imum 23 ;a)i& income proof &ocuments must be furnishe& ?o persona) guarantee is re.uire& Minimum )oan amount is $D+ 20,000O, ma/imum is L,00,000O1 7or both recon&itione& car an& ne, car )oan amount ,i)) be ma/imum J0K of the car va)ue -nterest rate ,i)) be 1L.2K per annum Ma/imum )oan tenure is 30 months :oan processing fee is 1K of the )oan amount or $D+ 1,000O1 ,hichever is higher S stamps $D+ 1J0O1 %ar ,i)) be registere& in $ank=s name 4no 0oint registration5 %omprehensive insurance in &iscounte& rate from se)ecte& insurance compan in $ank=s name is man&ator an& automatica)) &ebite& from customers account ever ear. %9P! sa)arie& customers ,i)) get 0.2K &iscount in )oan processing fee, i.e. 1LK

(-&

<19e L1a0

-t=s easier than ever to o,n a &ream home1 9)igibi)it 1 minimum month) income $D+ L0,000O1, 2 ears service in a ,e)) repute&, stab)e compan , minimum age 22. +he )oan must en& before borro,er=s age reaching 2J ears or retirement &ate, ,hich ever is ear)ier. +his )oan is provi&e& for comp)ete& f)ats O apartments F )ess than 20 ears of age ?o persona) guarantee is re.uire& Minimum )oan amount is $D+ J,20,000O1 an& ma/imum )oan amount is 100,00,000O1 108

 Ma/imum )oan tenure is 12 ears, )oan must be repai& prior to 2J ears of age A ma/imum )oan amount of J0K of the tota) va)ue of the apartment costing up to $D+ 20,00,000O1 an& 30K of the tota) va)ue for the apartments over $D+ 20,00,000O1. +he tota) )oan va)ue is inc)usive of the registration cost. -nterest rate is 1LK per annum :oan processing fee is 1.2K of the )oan amount or $D+ 20,000O1 ,hichever is higher S stamp charge !ecurit > Registere& mortgage an& origina) tit)e &ee& -nsurance> 7ire, earth.uake, f)oo&, c c)one

(-'

8e!410a7 Secu!e5 L1a0

Persona) !ecure& :oan is a simp)e stan& b )oan against the +ime Deposit an& ?R$ $on&s an& the )oan is repa ab)e in e.ua) month) insta))ment. !tan&b )oan against +MD an& ?R$ bon&s 469D$OU!D$5 69D$ 46age 9arners Deve)opment $on&5 or U!D$ 4U! Do))ar $on&5 issue& from #!$% an& other mu)tinationa) banks are consi&ere&. -nterest rate 12.2K for )oan amount be)o, $D+ 2,00,000O1 an& 12K for )oan amount of $D+ 2,00,000O1 an& above -nterest rate against :%M +MD is 1AK Minimum )oan amount $D+ H0,000O1 Ma/imum )oan amount H0K of :%M +MD amount or 69D$ an& 80K of 7%M +MD or U!D$ Processing fee against certificate issue& from #!$% is $D+ 1,000O1 S stamps $D+ 1J0O1

(-(

8e!410a7 Secu!e5 C!e5.t

%re&it faci)it against the investments1 Persona) !ecure& %re&it is a cre&it faci)it against +ime Deposits an& ?R$ $on&s that enab)es customers to have the f)e/ibi)it to meet short1term commitments ,ithout un)ocking their )ong1term investments.

108

 %ustomers can borro, up to H0K of their :%M +MD=s an& 69D$ va)ue 69D$ an& U!D$s issue& from #!$% an& other mu)tinationa) banks are consi&ere& Minimum )oan amount is $D+ H0,000O1 Ma/imum )oan amount H0K of :%M +MD amount or 69D$ an& 80K of 7%M +MD or U!D$s.

(-)

C!e5.t Ca!5

-ncrease the spen&ing po,er1 8!15uct Na9e: #!$% F Prime %o1bran&e& Master %ar& 8o)& %ar& Ca!5 T6 e: :oca) Master %ar& 8o)& %ar& Ca!5 L.9.t: !taff %ar&> $D+ 12,000O1 to 1, 00,000O1 Ma4te! Ca!5 G175 N1!9a7: $D+ 20,000O1 to 1, 00,000O1 Ma4te! Ca!5 VI8: $D+ 1, 00,000O1 to 2, 00,000O1

E7./.b.7.t6:
Primar 9)igibi)it > Minimum $D+ 22,000O1 gross income from regu)ar

sources. $ang)a&eshi %iti<en 21132 ears of age an& has account ,ith #!$% 7or !upp)ementar car& the person has to be at )east 18 ears of age Ca!5 L.2e: $ &efau)t 2 ears for a)) car&s ne, an& rene,e& B.77.0/ C6c7e> Jth &a of the month Repa ment Perio&> 23th &a of ever month. Ma/imum 20 &a s interest free perio& Minimum Pa ment %a)cu)ation 8K of the current ba)ance sho,n on the statement or $D+ 200O1 ,hich ever is higher. -f current ba)ance is )ess than $D+ 200O1, then fu)) pa ment 7or over )imit account> 8K of the cre&it )imit p)us e/cee&e& amount

(-*

C1! 1!ate Ba0=.0/ Se!3.ce4

108

#!$% offers ,i&e range of cash financing, ,orking capita), short, an& me&ium1term )oans, an& guarantee faci)ities to its corporate customers. -ts offshore banking Unit 4'$U5 provi&es U! &o))ar &enominate& ,orking capita) as ,e)) as short tem finance for capita) imports to e)igib)e businesses. #!$% is a ,or)&,i&e )ea&er in banking an& financia) services ,hose success is base& on its re)ationships ,ith its c)ients. 6hether )oca)) or aroun& the ,or)&, #!$% offers a comprehensive range of services that can be tai)ore& to the compan Es nee&s. !ome ma0or services provi&e& b #!$% corporate &ivision are %usto& services, 8)oba) pa ment ( cash management, +ra&e services, ( #e/agon.

(-+

G71ba7 8a69e0t4 C Ca4h Ma0a/e9e0t >8CM?

#!$%Es 8)oba) Pa ments an& %ash Management services are &esigne& to he)p its c)ients to operate efficient) , profitab) an& ,ith comprehensive support. +he aim is to provi&e a service that takes fu)) account of the customers= )oca) nee&s as ,e)) as regiona) an& internationa) re.uirements using our e/pertise an& g)oba) resources of the #!$% 8roup. P%M provi&es the fo))o,ing services to its c)ients> Acc1u0t4 C t!a04act.10 9a0a/e9e0t 4e!3.ce4: !tructuring of bank accounts to optimi<e the management an& f)o, of fun&s ,ithin or across nationa) bor&ers. Ca4h C L.Hu.5.t6 9a0a/e9e0t 4e!3.ce4: %ash is a compan Es most vo)ati)e asset an& #!$% provi&es the best service to manage its c)ient=s cash efficient) .

C<A8TER ):CRITICAL FUNCTIONAL ISSUES )-# Ma!=et.0/ I44ue4

D.!ect Sa7e4 >DS?: An e/ecutive is assigne& to this part of the marketing &epartment. +he Direct !a)es &ivision co1or&inate ( manages the sa)es activities of a)) the Mobi)e sa)es officers 4M!'5 of #!$% $ang)a&esh. +he M!'=s basica)) makes sa)es of the compan various Persona) $anking pro&ucts such as savings accounts, consumer )oan, etc outsi&e the banking premises. +here are a tota) of more than 100 mobi)e sa)es officers 4M!'5 emp)o e& in the cities of Dhaka an& %hittagong. M!'=s are assigne& to specific

108

branches for making sa)es activities more smooth) . +he D! e/ecutive sets sa)es strategies ( targets for the sa)es officers an& manages the ,ho)e team of M!'=s in $ang)a&esh. +he &irect sa)es &epartment a)so &eci&es upon the commission an& remuneration of the mobi)e sa)es officers as their sa)ar structure is base& on sa)es performances. +hus this part of the marketing &ivision is ver important for the overa)) gro,th of the Persona) $anking Division. 8!191t.10: +his part of the marketing &epartment &ea)s ,ith a)) the promotiona) activities of #!$% $ang)a&esh. Prime responsibi)ities of this &epartment are> Maintaining strong pub)ic re)ations ,ith various me&ia interme&iaries, a&vertising the compan =s pro&ucts, an& services, bui)&ing a strong corporate image of #!$% in $ang)a&esh. 8ub7.c Re7at.104: +he promotion &epartment organi<es various environmenta) an& socia) activities in or&er to bui)& a strong corporate image of #!$% in the min&s of customers as ,e)) as in the me&ia. Maintaining strong re)ationship ,ith ne,s me&ia is another ma0or &ut of this &epartment.

A53e!t.4.0/:
+he promotion a)so coor&inates a)) the a&vertising of #!$% pro&ucts ,ithin $ang)a&esh. !ome of the a&vertising too)s that are fre.uent) use& b the compan are as fo))o,s> Ne;4 a e!4 A53e!t.4.0/: Regu)ar a&vertisements of various pro&ucts an& services of #!$% are given in some of the countries most reno,ne& &ai) ne,spapers. B.77b1a!54: #uge co)ourfu) bi))boar&s ,ith #!$% )ogo are foun& in various ma0or areas of Dhaka an& %hittagong. +hese bi))boar&s emphasi<e on the nee&s of customers an& sho,s #!$% )ogo as so)ution to their nee&s. R1a5 S.5e S./0 14t4: Me&ium si<e& mu)ti co)our signposts focusing on various pro&ucts of #!$% are foun& on the roa&si&es of various posh areas such as, 8u)shan, Dhanmon&i, $ari&hara, Moti0hee), $anani etc.

108

Ma.74: ;arious pro&uct up&ates an& ne, pro&uct information are regu)ar) sent to e/isting customers of #!$%. B!1chu!e4: ;arious co)ourfu) brochures featuring specific pro&ucts of #!$% are being &isp)a e& an& &istribute& to e/isting an& potentia) customers via branch offices an& Mobi)e sa)es officers.

!o these are some of the promotiona) activities manage& an& coor&inate& b promotion &epartment. Ma!=et.0/ Re4ea!ch De a!t9e0t:

the

+his &epartment formu)ates ( e/ecutes various marketing strategies of #!$% $ang)a&esh. +his &epartment a)so a&ministers various marketing research activities on the e/isting an& potentia) customers of #!$%. !ome research activities are as )ike m ster shopping, critica) inci&ent surve s, customer suggestion surve s etc. +he resu)ts of these surve s are integrate& ,hi)e formu)ating various marketing strategies. +his &epartment a)so &ea)s ,ith the bi))ing an& invoicing of various marketing ( a&vertising costs of #!$% $ang)a&esh.

+hese are the ma0or &epartments of #!$% $ang)a&esh. 9/cept the branches a)) other &epartments are situate& at #!$% $ang)a&esh hea& offices )ocate& at Anchor +o,er, Ba,ran $a<ar. Most of #!$%=s operation an& activities are operate& centra)) from the hea& office. $ut to &ea) ,ith customers more comp)ete) , the branches are given consi&erab)e authorit an& the operate in a more &ecentra)i<e& manner but sub0ect to verification of the respective &epartments.

)-$

<R I44ue4

Rec!u.t9e0t@ T!a.0.0/ a05 De3e71 9e0t: #!$% $ang)a&esh )imite& fo))o,s a stan&ar& proce&ure for recruitment an& se)ection. #o,ever there is no set time perio& ,hen this recruitment an& se)ection takes p)ace. 9ach &epartmenta) hea& p)aces the re.uisition for recruitment to the #uman resource

108

officer, if an vacanc is create& &ue to 415 Retirement, 425 Resignation 4A5 Death, or 4L5 9/tra ,ork)oa&. +he process for the recruitment of personne) for manageria) an& non1manageria) )eve) &iffers s)ight) but the basic steps are same in both the cases. $efore mentioning the steps of the se)ection process it is ,orth mentioning that there is a uni.ue po)ic in the #R &epartment ,hich states that a person ,i)) not be e)igib)e to app) for an vacanc if his or her first1cousin, brotherOsister or spouse ,orks in an of the branches of #!$%. +he steps are1 ii5 iii5 iv5 v5 vi5 vii5 viii5 i/5 /5 /i5 /ii5 /iii5 /iv5 /v5 -nitia) screening !creening b &epartmenta) hea&s 7i))ing of the #!$% 0ob app)ication form !creening on the basis of !A7 -nitia) -ntervie,e& !e)ection for ,ritten test 6ritten test 9va)uation of test papers !e)ection of fina) intervie,ees 7ina) intervie, Documentation %heck Me&ica) e/amination Probationar appointment %onfirmation

-n or&er to enhance the efficienc of the emp)o ees, #!$% gives emphasis on the both theoretica) an& practica) training for its personne). A)) the training an& &eve)opment programs are aime& at t,o basic reasons 1 415 !ki)) &eve)opment 425 Motivation through counse))ing an& persuasion to change va)ue s stem. 7or the top management or senior managers there is provision for overseeing training arrange& b #!$% group. 7or the mi&1)eve) manager or other manageria) )eve) there is provision for regiona) training courses. $esi&es, for non1management )eve) there are training programs arrange& in &ifferent institution an& a)so ,ith in the organi<ation. 7or the operatives, various on the 0ob1training program are con&ucte& ,ithin the compan . 7ina)) , #!$%

108

$ang)a&esh )imite& fo))o,s a performance base& promotion s stem for a)) )eve)s of its emp)o ees. 8e!21!9a0ce A +he compan !a.4a7:

fo))o,s both rating an& &escriptive s stems for the performance

appraisa). A)though the appraisa) s stem is non1participative, the emp)o ees are annua)) assesse& ,ith a 0oint consu)tation ,ith their imme&iate supervisor an& &epartmenta) hea&. Rating is main) &one on the fo))o,ing factors1 ii5 iii5 iv5 v5 vi5 vii5 viii5 i/5 Bno,)e&ge of ,ork Accurac an& re)iabi)it !pee& 8enera) inte))igence !ense of responsibi)it an& &ut Di)igence -nitiative an& se)f confi&ence Rea&iness to ,ork for an& ,ith others.

We72a!e Act.3.t.e4: #!$% has man ,e))1structure& ,e)fare po)icies for its emp)o ees. +hese inc)u&e ,e))1 structure& ,age ( sa)ar po)ic , me&ica) faci)it , sports ( cu)tura) faci)ities, provision for )oans, free uniform etc. +hese ,e)fare po)icies aim at strengthening the re)ationship of the emp)o ees to the organi<ations an& make them more responsib)e in their respective positions. +he brief &escription of the ma0or ,e)fare po)icies are state& be)o,> Wa/e4 a05 Sa7a!6 A59.0.4t!at.10: #!$% fo))o,s a ,e))1&efine& ,age structure an& fringe benefits for its emp)o ees. +he ,age structure is up&ate& perio&ica)) 4+,o ears terms5 b the management. +he ma0or &eci&ing factors are1 i5 Profitabi)it of the compan

108

ii5 Average cost of )iving in the countr &ue to ear to ear basis inf)ationar tren& iii5 !tatus of ,age earners in simi)ar organi<ation iv5 Restrictive con&itions given b the government from time to time v5 7inancia) benefits status in the compan vi5 %omponents of e/isting ,age structure> vii5 $ase basic structure an& conve ance a))o,ance

C<A8TER *: INDUSTRY ANALYSIS

*-# I05u4t!6 A0a764.4
-n&ustr ana) sis bui)&s on customer ( competitor ana) sis to make more strategic 0u&gment about a market ( its & namics. 'ne primar ob0ective of in&ustr ana) sis is to &etermine the attractiveness of a market to current ( potentia) participants. A secon& ob0ective of a market ana) sis is to un&erstan& the & namics of the market.

+he nee& is to i&entif the ke emerging factors, tren&s ( threats, opportunities, ( strategic uncertainties that can gui&e information gathering ( ana) sis. Porter=s approach can be app)ie& to an in&ustr , but it can a)so be app)ie& to a market or sub1 market ,ithin the in&ustr . +he basic i&ea is that the attractiveness of an in&ustr or market as measure& b the )ong1term return investment of the average firm &epen&s )arge) on five factors.

108

A comp)ete un&erstan&ing of the competitive area he)ps to gui&e strateg &esign ( imp)ementation.

R.3a7!6 a910/ E:.4t.0/ C19 et.t1!4: +he riva)r among the competitors an& the gro,th in the in&ustr &epen&s upon the intensit of competition. A high intensit of competition is observe& in the banking sector of $ang)a&esh. +here are more than 20 commercia) banks in $ang)a&esh that fight for their o,n share of the market. +he nationa) banks have the highest banking net,ork in $ang)a&esh. +he compete against the banks ,ith their )o, cost of operation an& government support. Again, !tan&ar& %hartere& $ank is the )argest mu)tinationa) banking net,ork in $ang)a&esh that has its net,ork in man metropo)itans of $ang)a&esh. +here are other internationa) banks that a)so take part in the competition an& aggressive in nature. +his high intensit of competition makes companies &ifficu)t to sustain in the )ong run.

108

Bargaining Power of of Bargaining Power Suppliers Suppliers !upp)ier concentration !upp)ier concentration ?umber of of bubu ersers ?umber !,itching cost !,itching cost !ubstitute ra, materia)s !ubstitute ra, materia)s +hereat of for,ar& +hereat of for,ar& integration integration

Threat of of Potential Threat Potential Entrants Entrants 9conomies of of !ca)e 9conomies !ca)e $ran& i&entit $ran& i&entit %apita) re.uirement %apita) re.uirement Access to &istribution Access to &istribution Regu)ator po)icies Regu)ator po)icies !,itching cost !,itching cost Reaction from e/isting Reaction from e/isting p)a ers p)a ers

4Degree of of Riva)r 5 5 4Degree Riva)r

Differentiation Differentiation ?o. (( !i<e of of p)a ersers ?o. !i<e p)a -n&ustr 8ro,th -n&ustr 8ro,th $ran& :o:o a)ta)t $ran& 9/it $arrier 9/it $arrier

The Industry The Industry

Pressure from Pressure from Substitute Substitute Price of of substitute Price substitute Pro&uct i&entit Pro&uct i&entit 7unctiona) simi)arit 7unctiona) simi)arit

Bargaining Power of of Bargaining Power Buyers Buyers $u$u er er %oncentration (( %oncentration !i<e !i<e ?umber of of !upp)iers ?umber !upp)iers !,itching %ost !,itching %ost !ubstitute Pro&ucts !ubstitute Pro&ucts +hreat of back,ar& +hreat of back,ar& integration integration

F./u!e#%: 81!te!A4 F.3e F1!ce4 M15e7

108

Th!eat 12 Ne; E0t!a0t4: +he ne/t force high)ights the possibi)it of ne, competitors entering the market.

9/isting firms ma tr to &iscourage ne, comp)etion b aggressive e/pansion ( other t pes of entr barriers. +he banking sector of $ang)a&esh serious) faces the threat of ne, entrants. #o,ever the threat comes from t,o &irections. +he first threat comes ,ith the arriva) of the mu)tinationa) banks an& their branch e/pansion particu)ar) &ue to the booming energ sector. !econ&) , the continuous entries of )oca) banks ,ith )o,er cost structure a)so possess a severe threat to this in&ustr . -n the conte/t of #!$% the various ne, ( upcoming $anks pose a significant threat, being ne, entrants in the banking sector of $ang)a&esh. $ut #!$% is a,are of these potentia) competitors. !o it is tr ing to e/pan& countr ,i&e to make the sector unattractive ( to create entr barrier.

Th!eat 12 Sub4t.tute 8!15uct4: +his force consi&ers the potentia) impact of substitutes. ?e, pro&ucts that satisf the same customer nee&s are important sources of competition inc)u&ing a)ternative pro&ucts in the &efinition of pro&uct market structure i&entif competition. #!$% continuous) faces the threat of various substitute pro&ucts )aunche& b its strong competitors in the market p)ace. 7or e/amp)e, the )aunch of premier banking b !%$ poses a strong threat on #!$%=s premium customer group an& #!$% is at a con&ition ,here it shou)& )aunch an even better pro&uct. Moreover the various consumer cre&it schemes offere& b various )oca) banks ,ith )o,er interest rates an& cost a)so poses a strong threat on the #!$% persona) banking pro&ucts. Again the )o,er service charges at nationa) banks a)so &iscourage a ,i&e group of customers to ho)& account in #!$%. !o these are some of the threats pose& b substitute pro&ucts in the market p)ace. substitute forms of

108

Ba!/a.0.0/ 81;e! 12 Su

7.e!4:

+he fourth force is the po,er of supp)iers that ma have impact on the pro&ucers in an in&ustr . %ompanies ma pursue vertica) integration strategies to re&uce the bargaining po,er of supp)iers. -n the conte/t of #!$%, supp)iers are those customers an& organi<ations that provi&e financing to the firm via &epositor schemes. -f the cost of financing rises, then #!$% ,i)) have to increase the interest rate that it charges to its customer in or&er to be remain the business. +his ma situation. Ba!/a.0.0/ 81;e! 12 Bu6e!4: 7ina)) , bu ers ma use their purchasing po,er to inf)uence the pro&ucers or service provi&ers. Un&erstan&ing ,hich organi<ations have po,er ( inf)uence in the &istribution channe) provi&es important insight into the structure of competition. -n the banking sector of $ang)a&esh, customers have a strong bargaining po,er since there are a )arge number of commercia) banks provi&ing simi)ar services. %ustomers have a ,i&e range of options in &eci&ing either go for the mu)tinationa)s or turn to ne, )oca) banks for getting .ua)it service. 'thers ma a)so consi&er the nationa) banks for )arge cre&it faci)ities. +herefore banks have to pursue the customers ,ith attractive interest rates an& provi&e them ,ith tai)or ma&e customi<e& services in or&er to attract the customer or hunt &epositors. -n the conte/t of #!$%, the firm is more or )ess free from the cope of the bargaining po,er of the bu ers. #!$% has its o,n po)icies to carr out its operations ( emp)o ees fo))o, those ru)es to &ea) ,ith the customers. $ut too much rigi&it of the prevai)ing po)icies ,hi)e &ea)ing ,ith the c)ients ma un&er cut its c)ient base as ,e)) as profitabi)it . +o overcome this ,orst scenario F a positive ( persona)i<e& approach to the nee&s of customer 1 has become #!$%=s motto. resu)t in severe customer &issatisfaction ( as a resu)t poor profitabi)it . #!$% is a,are of this &evastating

108

*-$

SWOT A0a764.4

St!e0/th4: St!10/ C1! 1!ate I5e0t.t6: #!$% is the )ea&ing provi&er of financia) services ,or)&,i&e. 6ith its strong corporate image an& i&entit it can better position in the min&s of customers. +his image has he)pe& #!$% grab the persona) banking sector of $ang)a&esh ver rapi&) . D.4t.0ct O e!at.0/ 8!1ce5u!e4: #!$% in kno,n ,or)&,i&e for its &istinct operating proce&ure. +he compan =s managing for va)ue strateg better satisf customers nee&s an& a)so keeps the firm profitab)e. D.4t.0ct Sche5u7e: 9ver one in #!$% from the appraiser to the top management has to ,ork to the same sche&u)e to,ar& a &ifferent aspect of the same goa), interfacing simu)taneous) at a)) )eve) over .uite a )ong perio& of time. St!10/ E9 716ee B105.0/ a05 Be710/.0/0e44: #!$% emp)o ees are one of the ma0or assets of the compan . +he emp)o ees of #!$% have a strong sense of commitment to,ar&s organi<ation an& a)so fee) prou& an& a sense of be)onging to,ar&s #!$%. +he strong cu)ture of #!$% is the main reason behin& this strength. E22.c.e0t 8e!21!9a0ce: #!$% provi&es hass)e free customer service to its c)ient base comparing to the other financia) institutions of $ang)a&esh. Persona)i<e& approach to the nee&s of customers is its motto. Y1u0/ E0thu4.a4t.c W1!=21!ce: +he se)ection ( recruitment of #!$% emphasi<es on having the ski))e& gra&uates ( postgra&uates ,ho have )itt)e or no previous ,ork e/perience. +he )ogic behin& is that #!$% ,ants to avoi& the prob)em of Tgarbage in ( garbage out=. ( this t pe oung ( fresh ,orkforce stimu)ates the ,ho)e ,orking environment of #!$%.

108

E9 1;e!e5 W1!= 21!ce: +he human resource of #!$% is e/treme) ,e)) thought ( perfect) manage&. As from the ver first, the top management be)ieve& in empo,ere& emp)o ees, ,here the refuse& to put their finger in ever part of the pie. +his empo,ere& environment makes #!$% a better p)ace for the emp)o ees. +he emp)o ees are not suffocate& ,ith authorit but are ab)e to gro, as the organi<ation matures. C19 a0.10ab7e E03.!109e0t: A)) office ,a))s in #!$% are on) shou)&er high partitions ( there is no e/ecutive &ining room. An of the e/ecutives is )ike) to p)op &o,n at a tab)e in its cafeteria ( 0oin in a )unch chat ,ith ,hoever is there. 'ne of the emp)o ees has sai&, "-t=s e/citing to kno, ou ma see ( ta)k to the top management at an time. Mou fee) a rea) part of things*. N1 C199u0.cat.10 Ba!!.e!4: Man organi<ations are tr ing har& to avoi& communication barriers ( structura) bureaucracies. +he )itt)e e/istence of authoritative barriers among the &ifferent )eve) of management stimu)ates a fee)ing of importance as their ,ork get priorit over the position. EHua7.Dat.10: At #!$%, ,orkshops are con&ucte& perio&ica)) . 'n the ,orkshops, a)) peop)e participate as e.ua)s ,ith ne, members free to open) cha))enge top managers. F!ee E:cha0/e 12 C199u0.cat.10: At #!$% the main ob0ective is to setting up ,orkshops are to remove authorit from an artificia) spot at the top, ( p)ace it ,here the most kno,)e&geab)e peop)e are, the peop)e c)osest to the operations. +he free e/change of i&eas is reinforce& b a po)ic of "constructive confrontation*. 9ach emp)o ee is e/pecte& to cha))enge i&eas open) ( aggressive) but never attack an in&ivi&ua)=s motives for presenting an i&ea.

108

MBO: #!$% a)so has Management b 'b0ectives 4M$'5 ever ,here. 9ach person has mu)tip)e ob0ectives. A)) the emp)o ees must have to get the approva) of their bosses on ,hat the are going to &o. :ater the revie, as ho, ,e)) the have performe& their 0ob ,ith their management as ,e)) as the peer group. FO0e"t1"10eG Meet.0/: +he M$' makes the revie, a communication &evice among various groups. +he ke to the s stem is a "one1to1one* meeting bet,een a supervisor ( a subor&inate. -n the meeting, the prob)ems in &ea)ing ,ith customers are put for,ar& first ( ever one &ug it to so)ve. M15e!0 EHu. 9e0t C Tech0171/6: #!$% o,ns the best banking an& information techno)og e.uipments in $ang)a&esh. -ts u)tra mo&ern banking s stems starting from termina) pc=s to #U$=s are base& on the internationa) #!$% group stan&ar&s an& are the )atest. +he #e/agon pro&uct is one of the best e/amp)es in this conte/t. V.4ua776 A ea7.0/ Fac.7.t.e4:

#!$% has some of the best visua)) appea)ing branches an& office premises in Dhaka ( %hittagong that high) attracts customer=s attentions an& customers a)so fee) the internationa) environment ,hi)e banking ,ith #!$%.

Wea=0e44e4:
Na!!1; O e!at.0/ S a0: #!$% has a ver narro, operating span in $ang)a&esh. -t has on) 2 fu)) service branches in $ang)a&esh situate& on) at Dhaka an& %hittagong. ;arious geographic segments are current) not avai)ing the services of #!$% &ue to inconvenient branch )ocation or absence of neighborhoo& branches.

108

Ab4e0ce 12 St!10/ Ma!=et.0/ Act.3.t.e4: #!$% current) &on=t have an strong marketing activities through mass me&ia e.g. +e)evision. +; a&s p)a a vita) ro)e in a,areness bui)&ing. #!$% has no such +; a& campaign. N1 I03e4t9e0t 8!15uct4: %urrent) , the persona) banking &ivision of #!$% &oes not have investment pro&ucts for its customers. $anning of investment )oan b centra) bank posses a strong pressure to &esign ne, pro&ucts. Lac= 12 Cu4t19e! C102.5e0ce: As #!$% is fair) ne, to the banking in&ustr of $ang)a&esh average customers )ack the confi&ence in #!$% an& 0u&ge the bank as an average ne, bank. T11 Ma06 C10t!actua7 W1!=e!4: #!$% has contract ,orkers ,ho )ack the commitment ,ith superior .ua)it service an& a)so are prett &issatisfie& as being a contractua) ,orker. +his hampers the bank=s service .ua)it as a ,ho)e. L1; Re9u0e!at.10 8ac=a/e: +he remuneration package for the entr 1)eve) officers is consi&erab)e )o,. !ince other foreign an& )oca) banks offer a more )ucrative sa)ar package, it ,ou)& be &ifficu)t for #!$% to attract M$A=s in future ,ith its current sa)ar package.

1!tu0.t.e4:

<./h 5e9a05 12 <1u4.0/ 71a04: !ince housing is one of the basic nee&s of peop)e, there is a high &eman& of housing )oans. #!$% persona) banking &ivision can focus on this categor of pro&ucts an& grab these segments of customers.

108

D.4t.0ct 1 e!at.0/ !1ce5u!e4: #!$% is note& for its &istinct operating proce&ures. Repa ment capacit as assesse& b #!$% of in&ivi&ua) c)ient he)ps to &eci&e ho, much one can borro,. As the ,ho)e )en&ing process is base& on a c)ient=s repa ment capacit , the recover rate of #!$% is c)ose to 100K. +his provi&es #!$% financia) stabi)it remaining in the business for the )ong run. C1u0t!6;.5e Net;1!=: +he u)timate goa) of #!$% is to e/pan& its operations a)) over $ang)a&esh. ?urturing this t pe of vision ( mission ( to act as re.uire&, ,i)) not on) increase #!$%=s profitabi)it but a)so ,i)) secure its e/istence in the )og run. M1!e E: e!.e0ce5 C Ma0a/e!.a7 K01;"h1;: +he top management team of #!$% is e/pert in banking activities. +he operating po)icies estab)ishe& b them are uni.ue ( unifie&. A)) the members of the team carr out their management ro)es e/haustive) . +he e.ua)) contribute& to #!$%=s superior )ea&ership b carr ing out their uni.ue ro)es. +he ,orke& ,e)) together, respecting each other=s abi)ities, an& arguing open) ,ithout an rancor ,hen the &isagree. D.3e!4.2.cat.10: #!$% can peruse a &iversification strateg in e/pan&ing its current )ine of business. +he management can consi&er options of starting merchant banking or &iversif in to )easing an& insurance. As #!$% is one of the )ea&ing provi&ers of a)) financia) services, in $ang)a&esh it can a)so offer these services. C!e5.t Ca!54: +his is one of the most popu)ar an& emerging pro&ucts in $ang)a&esh, ,hich offers customers tota) financia) mobi)it . ;arious other banks an& institutions are current) offering this pro&uct. #!$% can a)so take a&vantage of this pro&uct an& grab the market share. ( gears up #!$% to be

108

AcHu.4.t.10: #!$% is one of the e/perts in ac.uiring various firms an& organi<ations. -n $ang)a&esh it can a)so &iversif .uick) b ac.uiring various )oca) estab)ishe& banks an& increase its tota) operation ,ithin $ang)a&esh rapi&) .

Th!eat4:
U c19.0/ Ba0=4: +he upcoming private )oca) ( mu)tinationa) banks posses a serious threat to the e/isting banking net,orks of #!$%. -t is e/pecte& that in the ne/t fe, ears more commercia) banks ,i)) emerge. -f that happens the intensit of competition ,i)) rise further an& banks ,i)) have to &eve)op strategies to compete against an& ,in the batt)e of banks. L14.0/ Cu4t19e!4: Absence of various pro&ucts such as cre&it car&, housing )oans is causing various customers to &etract from #!$%. +his is a serious threat for #!$% $ang)a&esh. M15e!ate Le3e74 12 Cu4t19e! Sat.42act.10: #!$% shou)& continuous) improve its customer service strategies an& the overa)) service .ua)it nee&s to ,in the customer satisfaction un&oubte&) . De2au7t Cu7tu!e: +his is a ma0or prob)em in $ang)a&esh. As #!$% is a ver ne, organi<ation the prob)em of non1performing )oans or &efau)t )oans is ver minimum or insignificant. #o,ever, as the bank becomes o)&er this prob)em ,i)) arise enormous) an& the bank ma fin& itse)f in a more threatening environment. +hus #!$% has to remain vigi)ant about this prob)em so that proactive strategies are taken to minimi<e this prob)em.

108

C<A8TER +: CREDIT ASSESSMENT CRITERIA

+-#
A

C!e5.t C6c7e
!1ach.0/ the ba0=:

+he cre&it process starts from approaching to the bank. +he customer must app) for )oan fu)fi))ing the respective )oan app)ication form either through coming to the bank or through contacting a mobi)e sa)es officer 4M!'5. +he customer shou)& incorporate necessar papers so that a)) the criteria are fu)fi))e& an& it becomes convenient for the approva) officers to assess the )oan. Chec=.0/ b6 the Cu4t19e! Se!3.ce O22.ce!4: After receiving the app)ication the responsibi)it transfers to the customer service &epartment of #!$%. +he customer service officers check the app)ications carefu)) . 6hether a)) necessar information is fi))e& in the app)ication an& ,hether a)) necessar &ocuments are attache& ,ith the app)ication becomes prime concern of the customer service officers. +he a)so verif the signature of the customer in the s stem, or open the customer aOc before for,ar& the app)ications to the M-!. MIS Rece.3e4 the A 7.cat.104:

#!$% operates centra)i<e& cre&it s stem. +herefore, a)) the )oan app)ications a)ong ,ith other che.ues an& &ocuments are sent to M-! through intransit mai)s. M-! officers receive these mai)s an& give primar input of the necessar information in the &atabase. +hereafter M-! officers assign the approva) officers accor&ing the t pe, amount, an& number of app)ication e.ua)) . A 7.cat.104 A44e44e5 b6 A !13a7 O22.ce!4:

+he approva) officers assess the app)ications on a priorit basis &ue to meet the !:A 4!ervice :eve) Agreement5. Usua)) %9P! 4%orporate 9mp)o ment Privi)ege !cheme5 an& Autopa )oan app)ications are assesse& b the same &a . +he )oan of 9/isting 4customers having banking re)ationship more than si/ months ,ith #!$%5 customers is asse& ,ithin L8 hours ,here the )oan of ?on1%ustomers 4customers having banking re)ationship ,ith #!$% )ess than si/ months5 is assesse& ,ithin H3 hours. #o,ever,

108

secure& )oans get highest priorit to a)) the sub sections 4%9P!, AU+'PAM, an& ?on1 customer5 of app)ications.

$ase& on various criteria approva) officers approve or re0ect the )oans. 7irst of a)), the see ,hether the app)icant fu)fi)s the parameters set b #!$% an& the centra) bank. +hereafter, the fo))o, the ru)es set b the bank to assess the app)ications. -f an &ocument is not provi&e& ,ith the app)ication the approva) officers p)ace &iscrepanc , ,hich is up&ate& in the &atabase, an& the M!'=s are informe& about the &iscrepancies through )oan up&ate an& make proper a&0ustment. Approva) officers recommen& the app)ications to be approve& or re0ecte& or &roppe& after assessment. After that app)ications are sent to the cre&it manager for revie,ing an& signing the &ocuments before for,ar&e& to M-! for up&ate. A !13e5 L1a0:

App)ications signe& b the cre&it manager for,ar&e& to M-! for up&ating )oan status in the &atabase. After status is up&ate& the app)ication is for,ar&e& to 'peration &epartment. 'peration staffs check ,hether a)) &ocs 4%-$, +-?, :oan set1off form, un&ate& che.ues5 are in or&er. Moreover sign on irrevocab)e )etter of authorit an& &eman& promissor note are a)so checke&. -f ever thing is in or&er then the )oan is &isburse& means mone is transferre& to the app)icant=s account. As operation officers after &isbursement assign a seria) number an& for,ar& the app)ications to the M-! to up&ate the &isbursement input. -f the fi)e )acks in an separate) unti) the &iscrepanc is up&ate& 4specia) cases5. Rejecte5 I D!1 e5 I De2e!!e5 L1a0: &ocument then it is kept

Re0ecte& fi)es a)so get appropriate status. After up&ating the )oan status the app)ications are assigne& a seria) number for future references incase of re1visit or if the customer ,ants to have his submitte& &ocuments back. $ut after a certain perio& of time these app)ications are sent to centra) storage an& &estro e& )ater on.

108

F71; 12 C!e5.t A44e449e0t 817.c6:

%ustomer App) for F./u!e #&: F71; 12 C!e5.t A44e449e0t 817.c6 :oan b M!' or 6a)k in to $ranches

+-$

Fact1!4 Dete!9.0.0/ L1a0 A44e449e0t %ustomer !ervice 4!ignature

App)ications !ubmitte& ( %hecke& b ,ith some basic

;erification, AO% 'pening Approva) officers in case of assessing the 9tc.5 )oan must comp)

re.uirements an& criteria. +he group itse)f &etermines these parameters an& some of them are imp)ie& &ue to $ang)a&esh $ank=s regu)ations. Parameter )ike securit t pe, ?e, App)ications Receive& b bank re)ationship ,ith M-! #!$% an& other banks, age, occupation, a&&ress, references, %-$ 4%re&it -nformation $ureau5 an& %P; 4%ontact Point ;erification5 report, previous e/perience or emp)o ment histor ,-nput, )oan repa ment tren& After Primar App)ications are etc are consi&ere& an& for,ar&e& to Respective Approva) scrutini<e& before &ec)aring a customer e)igib)e to avai) the )oan. !ome of the important 'fficers parameters are &iscusse& brief) to have an i&ea regar&ing )oan assessment.

A44e449e0t A person ,ith high net ,orth is consi&ere& as a goo& can&i&ate for )oan. 6hen a )oan is backe& b propert 47)at, %ar5 the approva) officers fin& the )oan eas an& secure to assess. -n case of secure& )oan, most) the securit matters. At #!$% the Persona)

MIS secure& )oan securities )ike "Protirakkha !ancha patra*, 69D$ 46age 9arners $on&5,
U!D$ 4U! $on&5, an& +MD 4+erm Deposits5 are nee&e& to be )ien ,ith the bank. App)ications ,ith Approve& App)ications are Discrepanc are informe& to for,ar&e& to 'peration M!' b Dai) :oan Up&ate for Disbursement $efore sanctioning )oan the cre&it officers carefu))Department ana) <e ,hether the customer 4:otus ?otes5 ,ou)& be ab)e to pa out the cre&it ,hen &ue, ,ith a comfortab)e margin of error. !i/ aspects of )oan app)ication usua)) &etermine this. +he are character, capacit , cash, Re0ecte&, Droppe&, Deferre& co))atera), con&ition an& contro). A)) these factors shou)& be taken into consi&eration App)ications are sent to before approving a )oan. %entra) !torage Cha!acte!: +he approva) officer ,ants to kno, about the purpose of the )oan first. +he must be convince& that the customer has a ,e))1&efine& purpose for re.uesting bank cre&it an&

108

serious intention to repa . -f the officer is not sure e/act)

,h

the customer is

app) ing for the )oan, he ma ask for the c)arification an& comfort ness of bank. 'nce the purpose is kno,n, the approva) officers must &etermine ,hether it is consistent ,ith the bank=s current )oan po)ic . 9ver )oan app)ication form of #!$% bank consist a b)ank area to be fi))e& b the customerO borro,er &escribing the purpose of the )oan. -f an kin& of inconsistenc arises the approva) officers have the right to ask for the proper e/p)anation to the M!' or even to the customers. Ca ac.t6: +he approva) officers make sure that the customer has the )ega) e)igibi)it for re.uesting the )oan an& the )ega) stan&ing to sign a bin&ing )oan agreement. -n #!$% has a parameter )ike the minors 4age be)o, 18 rs5 as ,e)) as the peop)e e/cee&ing the age )imit 22 rs ,ou)& not be e)igib)e for a )oan. At the same time in case of corporate c)ients the approva) officers make sure that the representative from a corporation asking for )oan has the proper authorit from the compan =s boar& of &irectors to negotiate a )oan an& sign the )oan agreement bin&ing the corporation. -n case of partnership business, the approva) officer might ask to see the firm=s partnership agreement to &etermine ,hich in&ivi&ua)s are authori<e& to borro, the firm. A )oan agreement signe& b unauthori<e& persons can be state& as unco))ectib)e, insecure an& therefore resu)t in substantia) )osses for the bank.

Ca4h: 6hi)e assessing the )oans the approva) officers concentrate main) on the borro,er=s abi)it to generate cash f)o, either from business or from sa)ar or other income. At #!$%, the bank statements are consi&ere& as the proof of income. +here is a),a s a high chance that the )oan app)ication of a borro,er ,ith a strong bank statement 4inf)o, to the bank account5 ,i)) be approve& b the cre&it &epartment of the $ank. -n case of unsecure& )oan, since no securit assessment. C177ate!a7: 108 is kept against the )oan taken b the borro,ers, their abi)it to generate cash f)o, becomes the main consi&eration of )oan

:ike cash inf)o, co))atera) is a)so important to support )oan re.uest. A person ,ith high net ,orth is consi&ere& as a goo& can&i&ate for a )oan. 6hen a )oan is backe& b some propert the approva) officers fin& the )oan eas to make. -n case of secure& )oan, the securit matters most) . At #!$% the Persona) secure& )oans are nee& to be backe& b the government bon&s. 'ther re.uirements are neg)igib)e in this case.

C105.t.10: +he approva) officer an& cre&it ana) st must be a,are of recent tren&s in the borro,er=s )ine of ,ork or in&ustr an& ho, changing economic con&itions might affect the )oan. 7or instance, at #!$% the approva) officers are not ver intereste& to entertain the businesspeop)e from garments in&ustr an& bu ing house business since, both of these interre)ate& businesses are vu)nerab)e in nature an& un&er uncertaint . +hough the papers 4bank statement an& ta/ papers5 appear to be strong at present these might turn into ,eak in near future.

C10t!17: +he bank ,ants to have contro) on the cre&it the have ma&e to their customers. +he bank ,atches on ,hether )a, an& regu)ation cou)& a&verse) affect the borro,er. At the same time the bank sees ,hether the )oan re.uest meets the bank=s an& regu)ator authorities= stan&ar&s for )oan .ua)it . 7or e/amp)e, previous) #!$% bank use& to give -nvestment :oan to the borro,ers so that the borro,ers can use that mone to invest on government bon& at a high interest rate. #o,ever, $ang)a&esh government has ma&e the &ecision that no )oan shou)& be ma&e for investing the )oan amount to the government bon&. +herefore, #!$% stoppe& the -nvestment :oan scheme an& is making a)ternative )oan pro&ucts. St!uctu!e 12 the L1a0: +he approva) officer is responsib)e to both the customer an& the bank=s &epositors an& stockho)&ers an& must seek to satisf the &eman&s of a)). +his re.uires first &rafting of a )oan agreement that meets the borro,er=s nee& for fun&s ,ith a comfortab)e repa ment sche&u)e. +he borro,er must be ab)e to comfortab) han&)e an re.uire& )oan pa ment, because the bank=s success &epen&s fun&amenta)) on the success of its customers. -f a ma0or borro,er gets into troub)e because it is unab)e to service a )oan, 108

the bank ma fin& itse)f in a serious troub)e. Proper accommo&ation of a customer ma invo)ve )en&ing more or )ess mone than aske& for over a )onger or shorter perio& than re.ueste&. -t is because man customers &o not kno, their o,n financia) nee& an& abi)it . +hus, the bank=s approva) officer must be financia) counse)or to customer.

At #!$%, the approva) officers &o not sanction the amount app)ie& for in a)) the cases. 6hat the approva) officers &o is that, the ana) <e the financia) nee& an& capabi)it of the borro,er an& carefu)) &etermine the amount the customer is capab)e to repa to the bank. -n a&&ition, #!$% has prepare& a f)e/ib)e repa ment sche&u)e of three, four an& five ears in ,hich borro,ers repa the )oan through e.ua) month) insta))ment. +herefore, #!$% is not on) sanctioning the )oan to the potentia) c)ients but a)so it is making sure that the borro,ers ab)e to serve the )oan easi) .

108

C<A8TER #,: SUMMARY OF T<E FINDINGS C TREND ANALYSIS

#,-# De7.0Hue0c6 a05 4=. cu4t19e!4

De)in.uenc is one of the most &ifficu)ties that banks are facing at this moment. +he primar task of the co))ection &epartment of bank is to re&uce the &e)in.uenc )eve) or keep it un&er contro). As the &e)in.uenc )eve) of a bank begin to rise it ,orsens the financia) con&ition an& the conse.uence can be fata). As skip customers ,e can refer to those ,ho have over&ue or have not pai& their month) insta))ments on time. An& there is a basic &ifference bet,een &e)in.uent an& skip customers. !kip customers are those ,ho have over&ue an& from co))ection point of vie, the &ue amount is unco))ectib)e. As e/amp)e ,e can consi&er the customers ,ho have provi&e& fa)se a&&ress an& cou)& not be contacte& )ater on, the &ecease& customers, customers ,ho have shifte& to another countr permanent) , 0ob )ess, 0ob change&, frau& etc are skip customers. Data regar&ing the !kip customers of #!$% sho,s that it sti)) in a to)erab)e )eve) but sho,ing a increasing ten&enc . +he main reason is that some certain groups of customers have been &e)in.uent ver often an& skipping ,ithout an trace. Accor&ing to the De)in.uenc % c)es of #!$%=s persona) asset pro&ucts, "!kip* customers are the &efau)ters ,ho have not pai& 9M- 49.ua) Month) -nsta))ment5 regu)ar) an& its not possib)e to co))ect or repa ment of over&ue amount from the customers. Moreover, once a borro,er is conserve& as a !kip or &efau)t customer, che.ues are bounce& ren&ering the borro,er crimina)) )iab)e, )ega) notice serve& of &efau)ter to repa C fai)ing this an arrest ,arrantOsummons is issue& b the court. 7ina)) , on fai)ure to repa ment, those account are ,ritten off ,ith &ue approva) of from Manager P7! or Manger %RM. Ana) <ing the nature of skip customers of persona) asset pro&ucts ,i)) revea) ,hether there is an natura) ten&enc among the skip customers or if there is an corre)ation among them. Moreover, ana) sis ,i)) he)p to fin& out the steps that shou)& be taken to contro) or bring the skip customers ten&enc at a nomina) )eve)

108

-n1&epth intervie,s ,ere con&ucte& ,ith cre&it co))ection officers of the &epartment of %%R of P7! since the are responsib)e to fo))o, up customers for repa ing their )oans. -n &etai) conversation ,ith them, eight groups have been sorte& out base& on skip customers= characteristics.

#,-$ S=. Cu4t19e!4 Natu!e

LOB " L1a0 O3e!bu!5e0: Most of these customers have taken )oans not on) from #!$% but a)so from other banks. !ome of them investe& the )oan amount in o,n business or taken the )oan for frien&s an& re)atives. +herefore, too much )oans have create& over bur&en on them, ,hich resu)ts into irregu)ar pa ment of )oan of #!$%. EOC " E1b Cha0/e5: +his group have change& 0ob after avai)ing the )oan. ?o,, the are receiving )o,er sa)ar than before, this is not enough to repa the )oans. EOL " E1b Le44: +hese customers are current) insta))ments. FRA " F!au5 Act.3.t.e4: Post1approva) verification foun& that these customers have taken )oans b provi&ing fa)se &ocuments an& information. SAL " Sa7a!6 8!1b7e9: +hese customers are facing sa)ar prob)ems i.e. either their emp)o ers are not pa ing them or the insta))ments. IND " I0te0t.10a7 De2au7te!: +hese customers have no intention to pa off the )oan. +he &o not ,ant to maintain an kin& of re)ationship ,ith the bank after avai)ing the )oan. are irregu)ar) pai& ,hich resu)ts into irregu)ar pa ment of )oan 0ob )ess. +he have )ost their 0obs someho, after avai)ing the )oan. +herefore, the are having serious prob)ems in pa ing )oan

108

TRA " T!ace7e44: %ustomers having inva)i& contact no, fa)se references an& fa)se a&&resses are inc)u&e& in this group. +herefore, co))ection officers cannot contact them an& force them to pa off the )oan. STC" Sh.2te5 t1 1the! C1u0t!6: %ustomers have intentiona)) escape& or permanent) shifte& to other countr ,ithout informing the bank as ,e)) as not pa ing the over&ue of the )oan. -n this situation after taking ever possib)e step to contact customers, the )oan is ,ritten1off from the book an& &efine& as ba& an& )oss. $ut bank take )ega) action )ike fi)ing case against the skip customers. OT< " Othe!4: %ustomers ,ho have other reasons )ike serious i))ness, a&&ress change, fami) crisis, temporar financia) prob)em etc. are inc)u&e& in this group. +here are JL "!kip* customers as of 7ebruar 2002 of persona) asset pro&ucts of #!$%. +he ana) sis has been &one on this &atabase an& each skip customer=s nature has been &erive& b intervie,ing co))ection officers= of %%R, P7!, an& #!$%. A0a76D.0/ Natu!e 12 S=. Cu4t19e!4: +he fo))o,ing &ata have been co))ecte& from the !kip customers= &atabase of M-! &epartment an& comments are supporte& b in1&epth intervie,s ,ith cre&it co))ection officers, te)e1co))ector an& co))ection supervisor of the &epartment of %%R, P7!. Rat.1 12 0atu!e 12 S=. cu4t19e!4 ba4e5 10 the.! cha!acte!.4t.c4: Natu!e 12 Cu4t19e!4 :'$ -?D G'% G': +RA !+% 7RA T1ta7 N1- 12 Cu4t19e!4 A2 A L 8 20 A L )& J L2 L 3 11 2J L 3 #,,

108

8!15uct4 Cate/1!6 %AR P-: G!a05 T1ta7

N1 3 38 )&

J 8 H2 #,,

7rom the ana) sis ,e can see that about L2K of tota) !kip customers are having )oan over1bur&en prob)ems, LK customers are intentiona) &efau)ters, 3K customers are not pa ing &ue to 0ob1s,itching or 11K of are 0ob1)ess. 2JK customers are tota)) trace)essC therefore pa ments are not coming from them. 7ina)) , LK customers skippe& as the move to another countr ,ithout repa ing the )oan. !ome of them foun& frau& 43K5 or having other prob)ems )ike i))ness, financia) crisis or have passe& a,a . Rat.1 12 A44et"8!15uct4 12 S=. Cu4t19e!4:

7rom the above tab)e, it is foun& that H2K of skip customers have taken persona) insta))ment )oan an& 8K have taken car )oan. +he ratio of skip customers of car )oan is ver )o, since the vehic)eC insurance an& registration &ocumentation are he)& as the securit against the )oan. -f a customer reaches to 8ra&e13, co))ection officers initiate the repossession procee&ings. $esi&es, it is note,orth that there are no skip customers of persona) secure& cre&it an& persona) secure& cre&it since these )oans are given against the bon&s. ?orma)) the securit is encashe& if the customer misses three consecutive 9M-s. !ince the apartment, propert insurance an& &ocuments are he)& as securit in the case of home )oan, there is no skip customer of home )oan. Rat.1 12 CE8SIAut18a6 .0 S=. Cu4t19e!4:

108

Customers Type

No. of Customers

%9P!OAU+'PAM 8enera) T1ta7 -t is foun& that on)

12 2H )&

20 80 #,,-,,

12K of tota) skip customers are having %9P!OAutoPa )o,. -n a&&ition, customers ,ith %9P!

backgroun&. !ince Autopa customers= sa)ar is &eposite& in #!$%=s account, their chances of becoming &e)in.uent are ver goo& over the ears. backgroun& are from high1profi)e companies. +heir )oan repa ment behavior has been

Natu!e 12 CE8SIAut18a6 Cu4t19e!4:

Natu!e 12 Cu4t19e!4 :'$ -?D G'% G': +RA !+% 7RA 'ther T1ta7 CE8SIAUTO8AY 2 L 12 J 8 10 3 L '+ J 8 J 22 12 1 1J 10 J #,,

-t is foun& that 2K of tota) %9P!OAutopa customers are having )oan overbur&en prob)ems, 22K customers are from 0ob1change& an& 0ob1)eft group an& LK customers are internationa) &efau)ter. 7ina)) , 8 K of the skip customers are &e)in.uent since the are trace)ess, have no intention to pa or have sa)ar prob)em. -t is evi&ent that, some of

108

these customers have avai)e& the )oan at )o,er interest rate using compan reputation or autopa a&vantages. 10K skip customers have )eft the countr ,ithout repa ing the )oan an& have no intention to pa in future. An& LK of the customers have other reason )ike &eath, i))ness, menta) retar&e& etc. #o,ever the overa)) ratio is satisfactor so far. C19 a0.e4 .0 Te!94 12 S=. Cu4t19e!4:
C19 a06 A B :ub 'i) Pvt :t& Access +e)ecom $& :t& A-? ' !a)ish Ben&ro Arshi Asset Deve) ( #o)&ings :t& Aurora Associates AR9 %D ( %'MPU+9R $abu) +ra&ers $ang !hi)paka)a Aca&em $A+ $& :t& $A+A !hoe %o. 4$ang5 :t& $e/imco Pharmaceutica)s :t& $e/imco +e/ti)es :t& $oichitra %onvers ) Departmenta) !tore DA?-DA Dhaka !heraton #ote) Do)phin %omputers :t& 9tcetera $& 7abian 8roup 8enera) Pharmaceutica)s :t& 8eorge 6ashington !choo) 8)oba) $ran& Pvt :t& 8rameen Phone 8rameen!oft,are :t& CAR 8IL 1 1 1 1 1 1 1 1 1 A 1 1 1 1 2 1 A 1 1 2 1 1 1 1 1 2 1 C19 a06 :earning !pree 9ra :egac 7oot,ear :t& :i ( 7ung $& :t& MOs Bama) 9nterprise Macro 7oot,ear :t& Ma)a sia Air)ines Marks ( A)) s :t& ?avana 9)ectronics :t& ?e, #ori<ons ?e,port 9/press $& :t& CAR 8IL 1 1 1 1 1 1 1 1 1 2 2 2 1 A 1 1 1 1 1 1 1 1 1 A (+ )&

Moungone 4%9PR5
'pe/ 8roup 'rion +a/i %ab Pvt :t& Pathfin&er Deve)opment $& :t& Phi)ips ;an #eusen 7ar 9ast :t& Iuasem Rinc :t&. Rangs :t& Ro a) $runei Air)ines !cho)astica 9nt Pvt :t& !heba 9)ectrinics 4$D5 :t& +e/19bo -nt Pvt :t& +rave) 6or)& 6est 6in& -nternatioa) 1 1

$e/imco +e/ti)e :t&

G!a05 T1ta7 T1ta7 S=. Cu4t19e!4

2 '

BA7%'=s
Barnaphu)i :t&

-t is foun& that, 'pe/ 8roup have been pro&ucing highest no 425 of skip customers an& in the secon& p)ace Dhaka !heraton #ote), $ritish American +obacco, Pathfin&er
Deve)opment $& :t& have been pro&ucing the secon& 4A5 number of &e)in.uent

customers. 7rom intervie, ,ith co))ection officers, it is foun& that those customers are )o,er )eve) emp)o ees 4main) chefs an& ,aiters5 but receive high sa)ar 413,0001 22,000OU5. +he &on=t have higher e&ucation, ,hich is a ma0or reason for un,i))ingness to pa off )oans. $esi&es, some of them have )oans ,ith other banks or the are intentiona) &efau)ter. 6henever the get sa)ar , the are more intereste& in meeting

108

other commitments, fami) nee&s etc but not in pa ing )oan insta))ments. %o))ection officers have foun& them ver prob)ematic an& commitment1 breaker. +hese reasons are app)icab)e for BA7%'=s 425 emp)o ees a)so. +hough, the pa ing )oan insta))ments. ?e/t, $e/imco +e/ti)e :t& 425 an& Moungone 4%9PR5 :t& 425 are other riskier companies in terms of having &e)in.uent customers. As $e/imco +e/ti)e :t& is not a financia)) strong an& profitab)e compan , the &o not pa their emp)o ees regu)ar) . +he pa them once in ever A1L months, ,hich create prob)ems for a customer in pa ing )oan insta))ments. $esi&es, in Moungone 4%9PR5 :t&, the ratio of 0ob1)eft an& 0ob1s,itch cases are high. More over, this compan &oesn=t pa its emp)o ees regu)ar) a)so. +herefore, there are some &e)in.uent customers of this compan . +he Ratio of rest of the companies can be ignore& but have to be monitore& c)ose) as app)icants from these companies might give a significant rise in skip customer=s tren&. get han&some sa)ar but the are over1bur&ene& ,ith other )oans, ,hich create prob)ems in

R.4=.e! Sect1!4 .0 Te!94 12 S=. Cu4t19e!4:

Sect1! Aca&em of fine ( performing arts Air)ines ( Aviation Pharmaceutica)s Bu6.0/ <1u4e %argo ( Air)ines %e))u)ar !ervice Provi&er C./a!ette Ma0u2ac- C M=t%omputer 9&ucation %entre %onstruction ( +ra&ing C104t!uct.10 a05 Su 76 %ourier D6.0/@ K0.tt.0/ C 8ac=a/.0/ 9)ectrica) goo&s import ( tra&ing 7abrics Manufacturing 8arments Accessories 8arments -tem CAR 8IL 1 1 1 % 1 1 % 1 1 % 1 $ 1 1 1 1
% 2 2 2 6 2 2 6 2 2 6 2

2 2 2 2

108

<1te7 Se!3.ce4 #uman rights an& )ega) ai& I05u4t!.a7 Th!ea5 Ma0u2actu!e! -!P P% accessories Pro&ucing ( Distrib. of Drugs Rea) 9state &eve)oper RMG !hipping, Manufacturing !ho, Retai)ing +a/i %ab %ompan +e)e %ommunication T.c=et.0/ a05 Ca!/1 T!a5.0/ C Ma!=et.0/ G!a05 T1ta7

% 1 $ 1 1 1 1 ' 1 1 1 1 2 % '#

6 2

# 1

2 2 2 2 !" 2 2 2 2 6

'

#,,

7rom the above tab)e, it is foun& that 10K of tota) !kip customers o,n or ,ork in garment factoriesC & ing, knitting an& packaging in&ustries or fabrics manufacturing companies. -t has been observe& that, peop)e, ,orking in this sector are more )ike) to change the 0ob, )eave the 0ob &ue to irregu)ar sa)ar pa ment from the emp)o er. +herefore, this sector can be consi&ere& risk in giving )oans. +here are about 3K skip customers in Pharmaceutica) sector. 7rom intervie, ,ith cre&it co))ection officers, it is foun& that, most of the peop)e, ,orking in pharmaceutica) companies, are sa)es officers. +heir sa)ar is main) commission1base&. 6hen the fai) to reaches their sa)es1target, assigne& b their companies, the &on=t get commissions. +herefore, the face serious prob)ems in pa ing )oan insta))ments. +here are LK skip customers in & ing, knitting, an& packaging sector. -n this sector, the practice of 0ob change is ver apparent. Moreover it is a sensitive sector, ,hich f)uctuates simu)taneous) ,ith market1&eman&. !ome the o,ners, ,ho have taken )oan from #!$%, became skip customer &ue to financia) instabi)it of the firm. Another ana) sis, it is foun& that peop)e, ,ho ,ork in hote) sector, &o not have goo& recor& in )oan repa ment, too. !kip customers rate in this sector is )ike 3K, &ue to &epen&abi)it on the market &eman& heavi) . 'ther risk sectors are Deve)oper an& %onstruction supp)iers sector 43K5, $u ingO+ra&ing #ouses 43K5 etc. Peop)e, ,ho ,ork in &eve)oping an& construction businesses, a),a s having shortage of cash in han&. 6henever the get mone the invest in the business as soon as

108

possib)e. +herefore, the often fai) to pa )oan insta))ment &ue to crisis of )i.ui& mone . +he ratio of )eaving 0ob or 0ob mobi)it is high in tra&ing an& marketing business. Moreover, peop)e ,ho ,ork in this sector often hi&e their actua) sa)ar an& avai) the )oan b sho,ing their sa)ar much higher. -n a&&ition, these peop)e ,ork in sa)es &epartment. +heir fi/e& sa)ar ba& situation. -n the ticketing an& shipping cargo sector, is another sector ,here the rate of skip customers is about LK. Primar reason for this ,e sa about their income )eve) ,hich is not high an& commission base&. +he are over1bur&ene& ,ith other )oans taken from either frien&s or from other banks. +herefore, the often face financia) prob)em or others &ifficu)ties in pa ing )oan insta))ments ,hen there is &o,ntren& in RM8, construction, foo& supp) business. $ecause these are the business that uses the cargo service most) . $esi&es, some businessmen have become har&core &efau)ters ,ho ,ork in bu ing or tra&ing companies. Usua)) , those bu ing houses= financia) stabi)it have been ver poor an& some of them are )osing businesses. !ho,ing fa)se sa)ar to avai) the )oan is a)so a common practice in this sector. -n a&&ition, in some cases, it is foun& that, some customers have taken )oans b sho,ing o,nership of bu ing houses, though that house &oes not e/ist at a)). Moreover, some tra&ing houses o,ner have avai)e& )oan b representing fa)se &ocuments an& information. 7ina)) , other risk sectors are1 rea) estate business, cigarette manufacturing an& have ver is ver )o,. +he tota)) &epen& on sa)es1 commission. +herefore, it is har& for them to pa )oan insta))ment ,hen the are in a

marketing etc. +he ratio of rest of the sectors can be ignore& as the neg)igib)e percentage of tota) &e)in.uent accounts.

S=. Cu4t19e!4 .0 te!94 12 A/e@ Se!3.ce Te0u!e a05 I0c19e Le3e7:

L1a0 13e! Bu!5e0: Se!3.ce Te0u!e 21A Mears A12 Mears N1 12 Cu4t19e!4 H 2 J 28 13

108

21J Mears J4S5 Mears T1ta7 M10th76 I0c19e 12000122000 tk. A30001L2000 tk. 230001A2000 tk. L20004S5 T1ta7 A/e 221A0Mears A11L0Mears L14S5 Mears T1ta7

8 10 %$ N1 12 Cu4t19e!4 12 8 J 2 %$ N1 12 Cu4t19e!4 12 H 8 %$

22 A1 #,,-,, J A8 22 22 13 #,,-,, J LJ 28 22 #,,-,,

-t is foun& that, LJK of tota) skip customers are &ue to )oan over bur&en is from 221A2 ears age group, A8K customers= month) income range is 12000122000 tk, 28K customers= service tenure is bet,een 21A ears. 28K of tota) skip customers are &ue to )oan over bur&en is from A11L0 ears age group, 22K customers= month) income range is A30001L2000 tk, 13K customers= service tenure is bet,een A12 ears. 6e can fin& a tren& from the ana) sis that those ,ho are ,orking more than J rs in a compan ,ithin income range of 12000 F 22000 tk are overbur&ene& more than other categories. Ana) sis imp)ies that, most of the :'$ customers= ,ork e/perience an& income )eve) is not ver high. Moreover, the are from oung age group. 7rom intervie, ,ith the co))ection officers, it is foun& that, in most of the cases, customer &e)iberate) concea)e& the actua) purpose for taking the )oan an& use& vague terms )ike "Purchasing househo)& app)iances*, "Persona) e/pen&iture* etc. Most of these customers have persona) )oans ,ith other banks or ,ith their frien&s an& re)atives an& taken )oan from #!$% 0ust to repa those )oans. Moreover, the provi&e& misinformation regar&ing their month) contact them. I0te0t.10a7 De2au7te!: income an& e/pen&iture to )o,er the D$ ratio. 7or provi&ing fa)se contact number an& references it ,as not possib)e for the co))ection team to )ocate or

108

Se!3.ce Te0u!e A 4S5 Mears 21A Mears T1ta7

N1 12 Cu4t19e!4 L 2 (

J 3J AA #,,-,,

M10th76 I0c19e 22000 4S5 tk. 12000122000 tk. T1ta7

N1 12 Cu4t19e!4 2 1 (

J 8A 1J #,,-,,

A/e A31L2 Mears 221A2 Mears T1ta7

N1 12 Cu4t19e!4 A A (

J 20 20 #,,-,,

-t is foun& that, 3JK of tota) -?D customers have more than A ears ,ork e/perience, 8AK earn more than 22000OU, 20K be)ong to A31L2 age group1 usua)) a)) these ratio are consi&ere& as strength for a customer. #o,ever, -?D customers have taken )oans using this strength. 9ven the have provi&e& va)i& phone numbers, a&&resses an& references, but )ater on the foun& as har&core &efau)ters an& skippe& as ,e)). +hough having the abi)it to pa off the )oan, the are tota)) unconscious about pa ment an& the took )oan ,ithout having the intention to repa . E1b Cha0/e5:
Se!3.ce Te0u!e 21A Mears A 4S5 Mears T1ta7 M10th76 I0c19e 12000122000 tk. 22000 4S5 tk. T1ta7 A/e 221A2 Mears A31L2 Mears T1ta7 N1 12 Cu4t19e!4 2 2 & N1 12 Cu4t19e!4 A 1 & N1 12 Cu4t19e!4 A 1 & J 20 20 #,,-,, J J2 22 #,,-,, J J2 22 #,,-,,

108

7rom the ana) sis, it evi&ent that 20K of tota) G'% customers have 21A ears ,ork e/perience, J2K earn from 12000 to 22000OU an& J2K be)ong to 221A2 age group. -t seems that, the tren& of 0ob s,itching is high in oung age group. +herefore, their service tenure is not too )ong. $esi&es, 12000 122000OU, this income group have ten&enc to change 0ob to get more sa)ar . #o,ever, some of them have foun& that the are receiving )o,er sa)ar or irregu)ar sa)ar in the ne, 0ob than before. As a resu)t, the are not pa ing )oan insta))ments. !ome of them have avai)e& )oan b app) ing as service1ho)&ers, ,hich are actua)) sma)) businessmen. +he &o this 0ust to avoi& provi&ing authenticate& ta/ paper. -t has been observe& that peop)e ,orking in pharmaceutica)s, tra&ing 1bu ing houses, insurance companies, a&vertising an& me&ia companies an& construction F supp) have higher ten&enc of 0ob change.

E1b Le44:
Se!3.ce Te0u!e 21A Mears A4S5 Mears T1ta7 N1 12 Cu4t19e!4 3 2 * J J2 22 #,,-,,

M10th76 I0c19e 12000122000 tk. 220004S5 tk. T1ta7

N1 12 Cu4t19e!4 2 A *

J 3A AJ #,,-,,

A/e 221A2 Mears A31L2 Mears L24S5 Mears T1ta7

N1 12 Cu4t19e!4 L A 1 *

J 20 A8 12 #,,-,,

108

-t is foun& that, J2K of tota) G': customers have 21A ears ,ork e/perience, 3AK earn from 12000 F 22000 tk an& 20K be)ong to 221A2 age groups. +he characteristics of G': customers are more or )ess simi)ar to G'%s= characteristics. -t has been foun& that peop)e ,orking in &ifferent t pes of bu ing house, constructions F supp) business, computer e&ucation centers, courier services, internet service provi&ers 4-!Ps5 an& RM8 sectors, have higher ten&enc of )eaving or s,itching to another 0ob. T!ace7e44:
M10th76 I0c19e 12000122000 tk. L2000 4S5 tk 230001A2000 tk. A30001L2000 tk. T1ta7 N1 12 Cu4t19e!4 10 3 A 1 $, J 20.00 A0 12 2 #,,-,,

A/e 221A2 Mears L24S5 Mears A31L2 Mears T1ta7

N1 12 Cu4t19e!4 12 2 A $,

J 30 22 12 #,,-,,

-n this ana) sis it is evi&ent that 20K of tota) +RA customers earn from 12000 to 22000 tk an& 3LK be)ong to 221A2 age groups. -t is ,orth mentioning that most of +RA customers are oung an& earning minimum sa)ar to avai) a )oan. 7rom intervie, ,ith the co))ection officers, it is foun& that some of +RA customers permanent) )eft the countr . !ome of them have )eft the 0ob ,ithout notif ing both emp)o er an& the bank. !ome of them have provi&e& fa)se phone number an& references or a&&resses. !o it is too tough to contact them. +herefore, the are tota)) out of sight of the co))ection &epartment an& consi&ere& as skip customers. Sa7a!6 8!1b7e9: >F!au5?
Se!3.ce Te0u!e 21A Mears A4S5 Mears T1ta7 N1 12 Cu4t19e!4 L A ) J 2J LA #,,-,,

108

M10th76 I0c19e 220001A2000 tk. A20004S5 tk. T1ta7

N1 12 Cu4t19e!4 2 2 )

J J1 2H #,,-,,

A/e 221A2 Mears A31L2 Mears T1ta7

N1 12 Cu4t19e!4 2 2 )

J J1 2H #,,-,,

-t is foun& that, 2JK of tota) !A: customers have 21A ears ,ork e/perience, J1K earn from 22000 to A2000OU an& J1K be)ong to 221A2 age group. -t seems that !A: customers earn han&some amount of mone though having service tenure not too )ong. Actua)) , the have avai)e& )oans b provi&ing fa)se sa)ar statement, ,hich is much higher than origina). -n other cases, some companies )ike garments manufacturing organi<ations pa their emp)o ees irregu)ar) , ,hich make them incapab)e to pa )oan insta))ments.

F!au5 Act.3.t.e4:
Se!3.ce Te0u!e :ess than A Mears A4S5 Mears T1ta7 M10th76 I0c19e 12000122000 tk. T1ta7 A/e 221A2 Mears A31L2 Mears T1ta7 N1 12 Cu4t19e!4 A 1 & N1 12 Cu4t19e!4 L & N1 12 Cu4t19e!4 2 2 % J J2 22 #,,-,, J 100.00 #,,-,, J 3J 2A #,,-,,

-t is foun& that, J2K of tota) frau& categor customers have )ess than A ears ,ork e/perience, a)) of them earn from 22000 to A2000 tk an& 3JK be)ong to 221A2 rs age group. -t is significant that 7RA customers &o not have )ong ,ork e/perience an& consists of oung age& peop)e. !ome of them provi&e& misinformation regar&ing their

108

emp)o er or business concern. Post approva) verification revea)e& that these customers= mentione& business concerne& &oes not at a)) have an e/istence. -n most cases, the app)icant mentione& their frien&s an& co))eagues as imme&iate re)atives an& cousins. $esi&es, some of them have provi&e& fa)se ta/ paper, :'- etc. Actua)) , the have taken )oan from other banks a)so b using same techni.ues, for ,hich the can be consi&ere& as professiona)s. !o it is .uite evi&ent that these t pes of customers ha& no intention to repa the )oan from the ver beginning an& intentiona)) skippe&. Othe!4: +his group contains &ifferent t pes of customer )ike those ,ho are temporari) 0ob )ess, having financia) prob)em, su&&en &eath, fami) crisis, i))ness etc. A customer ma be skippe& for these various reasons. !ince this group contains ver fe, accounts, the ana) sis in terms of age, income an& service tenure is not &one for this group. $ut measures shou)& be taken to keep this group un&er contro).

#,-%

G!a h.ca7 I0te! !etat.10 12 S=. Cu4t19e!4 A0a764.4:

%ustomerEs %haracteristics A2 A0 22 20 12 10 2 0 :'$ -?D G'% G': +RA !+% 7RA ?o of %ustomers

108

%9P!OAU+'PAM in !kip %ust

60 ?o of %ustomers 50 40 30 20 10 0 CEPS/AUTOPAY !tatus General

?ature of %9P!OAU+'PAM
16 14 12 10 8 6 4 2 0

?o of %ustomers

LOB

IND

JOC

JOL

T A

STC

! A O"#er

?ature

108

Asset1 Pro&uct of !kip %ust

90 60 50 40 30 20 10 0

?o of %ustomers

CA

PIL

Pro&ucts

P#ar$a%e&"'%al( B&)'n* +,&(e

Se#torwise S$ip Customers

Car*, - A'rl'ne( Cell&lar Ser.'%e Pr,.'/er C'*are""e 0an&1a%2 - 03"2 C,$4&"er E/&%a"',n Cen"re C,n("r&%"',n an/ S&44l) C,&r'er D)'n*5 6n'""'n* - Pa%3a*'n* Ele%"r'%al *,,/( '$4,r" - "ra/'n* !a7r'%( 0an&1a%"&r'n* Gar$en"( A%%e((,r'e( +,"el Ser.'%e( +&$an r'*#"( an/ le*al a'/ In/&("r'al T#rea/ 0an&1a%"&rer ISP PC a%%e((,r'e( eal E("a"e /e.el,4er 0G S#'44'n*5 0an&1a%"&r'n* Ta8' Ca7 C,$4an) T'%3e"'n* an/ Car*, Tra/'n* - 0ar3e"'n*

108

#,-& F.05.0/4 12 S=. Cu4t19e!A4 A0a764.4

Ba4e5 10 the ab13e a0a764.4 21771;.0/ 2act4 ha3e c19e 1ut" L2K of tota) !kip customers are not pa ing )oan insta))ments &ue to having )oan overbur&en prob)ems. 9ither the have )oan ,ith other banks or the have taken )oan from their frien&s an& re)atives. +he are incapab)e of pa ing off these )oans since their income have been remaining same. !o the have a goo& reason to be skippe&. 22K of tota) !kip customers are not pa ing for either the have change& their previous 0obs or current) the are 0ob )ess. Peop)e, ,ho have change& 0ob, are not pa ing )oan insta))ment since the are receiving )o,er sa)ar than before. Gob )ess peop)e is not pa ing because at present the have no source of income. LK of tota) !kip customers are intentiona) &efau)ters. +he are not pa ing ,ithout an va)i& reason though the are capab)e enough. 7orm the intervie, of

108

the co))ection officers it has come out that most of them have strong po)itica) backup an& use& the po)itica) inf)uence to sanction the )oan. +his kin& of cases the bank has not much to &o even though anticipating subse.uent risk is invo)ve&. +he rest of the customers 42JK5 are not pa ing for &ifferent reasons )ike co))ection officers cannot contact them, customers have move& to another countr permanent) , some of them foun& frau& an& some of them are facing sa)ar prob)ems or the are facing other prob)ems. Among five asset1pro&ucts, Persona) -nsta)ment :oans 4P-:5 has been facing about a)) of the !kip customers. +his is because, no invoice, .uotation, persona) guarantee or cash securit are re.uire& for these )oans. 9ven no &o,n pa ment is re.uire& to &isburse this )oan.

'n)

12K of tota) !kip customers have taken )oan as %9P!OAU+'PAM.

#o,ever, a certain group of these peop)e, ,ho ha& no intention to pa back, have avai)e& the )oan using this a&vantage. -n terms of &e)in.uent accounts an& skip cases, comparative) riskier companies are $A+ $& :t&, %onvers ) Departmenta) !tore, 'pe/ 8roup, Pathfin&er Deve)opment $& :t&, 7abian 8roup, ?e,port 9/press $& :t&, Dhaka !heraton #ote), BA7%', Moungone 4%9PR5, an& $e/imco +e/ti)e :t&. +hese companies have the highest number of !kip customers in terms of both %AR an& P-:. -n terms of number of skip customers= accounts, comparative) riskier sectors are 8arments Manufacturing %ompanies, Pharmaceutica)s, %igarette manufacturing an& marketing, %onstruction an& supp) , D ing, Bnitting, an& packaging, +ra&ing an& marketing, #ote) !ervices, +icketing an& %argo sectors. +hese sectors contain the highest number of !kip customers. Most of the :'$ customers are taking )oans b hi&ing their other )oan &etai)s, &e)iberate) mentioning higher sa)ar , provi&ing fa)se a&&ress an& references, 108

contact numbers, sho,ing ver )ess e/pen&iture an& hi&ing the origina) purpose of taking )oans. -n some cases skip customers take favor of some frau& officers to concea) their actua) &esignation, sa)ar , &ate of 0oining in :'- 4:etter of intro&uction5 to make the sanction of the )oan reasonab)e. Most of the -?D customers have more than A ears ,ork e/perience, earn more than 22000OU an& be)ong to A31L2 age group1 usua)) a)) these ratio are consi&ere& as strength for a customer. #o,ever, -?D customers have taken a )oan using these strengths both po)itica) an& socia). +hough having these strengths, the are tota)) unconscious about repa ment an& become trace)ess after taking the )oan. A particu)ar group, ,ith&ra,ing sa)ar 12000122000OU, have ,ork e/perience )ess than A ears an& be)ong to 221A2 age group are more )ike) to s,itch the 0ob. -t has been observe& that peop)e ,orking in RM8, $u ing #ouse, #ote) business, +ra&ing an& marketing business, insurance companies, a&vertising an& me&ia companies an& ?8's have higher ten&enc of 0ob change. -t has been foun& that peop)e ,orking in &ifferent t pes of pro0ect 4U?, %AR9 etc5, computer e&ucation centers, courier companies, internet service provi&ers 4-!Ps5 an& garments sectors, have higher ten&enc of )eaving 0ob. A certain group of peop)e have avai)e& )oans b provi&ing fa)se phone number an& references or a&&resses. Another group provi&e& misinformation regar&ing their emp)o ers or business concerns. Post approva) verification revea)e& that these customers= mentione& business concerne& &oes not have an e/istence at a)). -n most cases, the app)icant mentione& their frien&s an& co))eagues as imme&iate re)atives an& cousins. $esi&es, some of them have provi&e& fa)se ta/ paper, :'- etc. -t is a)so foun& that, most of the !A: customers have 21 A ears ,ork

e/perience, earn from 22,000 to A2,000 tk an& be)ong to 221A2 rs age group. -t seems that !A: customers earn han&some amount of mone though having service tenure not too )ong. Actua)) , the have avai)e& )oans b provi&ing fa)se 108

sa)ar statement, ,hich is much higher than origina) ,ith the he)p of some officers. -n a&&ition, some companies )ike garments manufacturing companies, bu ing house, hote) services, construction an& supp) the future these t pe of customer become skip customers. business pa their emp)o ees irregu)ar) ,hich make them incapab)e to pa )oan insta))ments. -n

C<A8TER ##: RECOMMENDATIONS

Ba4e5 10 the 2.05.0/4 21771;.0/ !ec199e05at.104 a!e !13.5e5: %ustomers= e/pen&iture1income &etai)s an& )oan &etai)s must be carefu)) verifie& to minimi<e )oan overbur&en prob)ems. +o minimi<e the risk of facing G': or G'% customers if an customer changes the 0ob, the compan shou)& inform #!$% an& present )ocation of the customer ,i)) be mentione& too. -n a&&ition, the management must verif emp)o ments &etai)s. +he co))ections officers to co))ect the )oan insta)ments shou)& han&)e intentiona) &efau)ters carefu)) . !ince the insta)ments. +o minimi<e the risk of having 7RA an& +RA customers, a)) the app)icants preferab) shou)& have )an& phone 4PA$V not app)icab)e5 an& the concerne& peop)e must verif a)) the contact phone numbers. References must be imme&iate re)atives an& verifie& over phone before approva)s. %ustomers= a&&ress an& other information must be a)so be verifie& b the concerne& peop)e. are ver sensitive customers, continuous fo))o, up activities shou)& be organi<e& to create a,areness about pa ing )oan

108

 Persona) insta)ment )oan ma be taken for an purpose but shou)& be specific an& c)ear) state& in the app)ication. +he bank ma ask for .uotation in case of %AR )oan. -n a&&ition, the )oan fun& shou)& be &isburse& favoring the ven&or for specific purposes on a case1to1case basis. +his ,i)) protect the misuse of fun&s. %ompan approva) re.uire& before receiving an app)ication from ne,

compan i.e. financia) strength, stabi)it , an& contribution to the econom . :'signator must be verifie& b authori<e& signature provi&e& b the compan . 7or Autopa O%9P! customer the financia) bur&en, service )ength, previous 0ob e/perience of the customer an& socia) reputation an& nature of the compan shou)& be taken into consi&eration ,ith greater importance.

Management shou)& carefu)) han&)e the )oan app)ication from some particu)ar companies an& sectors that have been pro&ucing skip an& &e)in.uent customers. App)ication receive& from the risk sectors shou)& be verifie& carefu)) an& more authentications shou)& be create& to assess those particu)ar app)ications. :oan app)ications from customers from oung age group, having shorter service tenure an& )o,er income )eve), shou)& be carefu)) assess Another important thing is that #!$% shou)& make the CIB >C!e5.t .021!9at.10 Bu!eau? report man&ator for ever sort of app)icants. +his report provi&e& b $ang)a&esh $ank ,i)) create more transparenc about the comers, revea) the past repa ment recor& of )oan faci)it from other banks, app)icants cre&it ,orthiness, integrit )eve) ,ou)& be verifie& b this report. Making %-$ report man&ator for the app)icant - think the ten&enc of skip customers ,i)) be re&uce& to a subse.uent )eve). %o))ection efforts shou)& be given more emphasi<e& to ask the customers make the repa ment regu)ar) . %ustomers ,ith &ue of 1 an& 2 pa ments shou)& be monitore& carefu)) an& prevent them to from reaching the in &ue A categor . 108

 :ega) actions taken against the skip an& &e)in.uent customers shou)& be strengthen to &iscourage the app)icants becoming &e)in.uent or skip customers. !a)es team can p)a an important ro)e in re&ucing skip customers. Avoi&ing risk sectors as ,e)) as giving importance to banks= interests an& profits ,i)) persua&e them to bring goo& customers an& he)p to re&uce the skip ten&enc at a to)erant )eve). 7ina)) , the management shou)& strict) fo))o, group po)ic before procee&ing for an )oan app)ication.

##-# Rec199e05at.104 21! O3e!a77 C!e5.t 8e!21!9a0ce

E04u!e Fa4te! C!e5.t F71;: +o ensure efficient an& time) cre&it f)o, it is important to ensure effective ,ork an& output from a)) the subsections of cre&it &epartment. Right no,, there are five approva) officers, five operation staffs ,here there is on) t,o M-! officer. M-! officers have to &o a )ot of tasks 4profit mo&e), prepare )oan up&ate, &ifferent .ueries, month) , .uarter) returns, $ang)a&esh bank an& group report5 a)ong ,ith giving input to the &atabase. #ence, it becomes ver har& to perform a)) the tasks ,ithin the &ea&)ine an& therefore bott)eneck operation creates. $ott)eneck operation &e)a s the ,ho)e cre&it process. !o, it is recommen&e& to recruit more peop)e in M-! to remove bott)eneck an& ensure smooth cre&it f)o,. E04u!e Fee5bac= 2!19 MSO: M!'s nee& to be traine& up proper) so that the posses a goo& kno,)e&ge about cre&it. 6henever the approva) officers ,i)) contact them the are e/pecte& to give proper fee&back. +hough sa)es an& cre&it are e/pecte& to be contra&ictor &epartment, the mobi)e sa)es officers 4M!'5 shou)& emphasi<e more on he)ping the approva)

108

officers ,ith their highest effort rather interrupting their 4approva) officers5 ,ork for achieving sa)es target. I0.t.at.10 12 Sc1!.0/ S64te9: -f #!$% assign score on specific )oan criteria it ,i)) become easier for the approva) officers to assess the )oans. !coring s stem ,i)) he)p to re&uce ba& app)ications automatica)) an& the bur&en on approva) officer ,i)) be re&uce&. 'n the other han& strength of a )oan ,i)) be stemme& out from scoring s stem. #o,ever, the assessment proce&ure shou)& remain same. Rec104.5e! I0te!e4t Rate4 10 Sa3.0/4: +he savings rates of #!$% shou)& be re&esign as most of the customers ,ere current) &issatisfie& ,ith the savings rates. #!$% shou)& restructure the interest schemes of its savings pro&uct to attract more va)uab)e customers.

I0t!15uct.10 12 <1u4e Bu.75.0/ C!e5.t Fac.7.t.e4: #ouse bui)&ing cre&its ( )oans shou)& be intro&uce& to satisf customer nee&s. Moreover to compete hea& to hea& ,ith other banks #!$% shou)& )aunch this pro&uct ,ithout &e)a . At present #!$% is financing to purchase comp)ete f)ats on) . L1c=e! Se!3.ce4: 6hi)e interacting ,ith the customers at customer service point a huge amount of customers &eman&e& )ockers services. 6ith such &eman& of this service, #!$% shou)& consi&er of proving )ocker services to its customers. +his ,i)) a)so attract ne, customers from other banks ,ho are current) offering this service. U4e 12 Ma!=et.0/ Re4ea!ch: +he management of #!$% shou)& regu)ar) a&minister marketing research activities in or&er to keep a regu)ar track of satisfaction )eve)s. Regu)ar research shou)& a)so be con&ucte& to fin& out customer e/pectations about various service aspects. As customer e/pectations an& satisfaction are not static figures regu)ar research at sufficient interva)s shou)& be con&ucte&.

108

F1cu4 10 Re7at.104h. St!ate/.e4: +he bank shou)& focus more on e/isting customers in or&er to bui)& strong an& )o a) re)ationship ,ith them as satisfie& customers more apt) or certain) recommen&s the bank to frien&s an& re)atives. +hus the po,er of re)ationship ,i)) foster positive 6or& of Mouth %ommunication an& ,i)) attract ne, customers at a )o,er cost. E9 716ee T!a.0.0/4: 9mp)o ee trainings an& ,orkshops shou)& be a&ministere& in or&er to give them kno,)e&ge an& professiona)ism of customer interactions. 6ith more professiona) base emp)o ees can better satisf the customers. +he shou)& be taught about ho, to &ea) ,ith prob)em customers an& ho, to &ea) prob)ematic situations. 9mp)o ees1 specifica)) sa)es officers shou)& be conscious an& taught about the financia) aspects of the )oans so that it becomes convenient for the approva) officers to assess )oans.

Ne; B!a0che4 Sh1u75 Be I0t!15uce5: %ustomers sho,e& a huge &issatisfaction ,ith current )ocations as #!$% provi&es services from on) 2 branches throughout $ang)a&esh. ?e, branches shou)& be constructe& in Dhaka cit satisf ing more geographic segments. As convenience of communication to the branch )ocation is a ver important factor for the customers #!$% shou)& consi&er bui)&ing ne, branches an& A+M=s ,ithin Dhaka cit as ,e)) as other metropo)itan cities of $ang)a&esh. Ne; I03e4t9e0t !15uct4: ?e, investment schemes shou)& be intro&uce& to meet customer &eman&s. 'ther banks have )arge number of investment schemes an& services. ?e, persona) savings, future investment pro&ucts shou)& be )aunche& to sta ahea& of competition an& better satisf customer re.uirements. Cu4t19e! 5e2.0e5 Se!3.ce 4ta05a!54: A forma) service b)ueprint shou)& be &esigne& ,ith appropriate service )eve) stan&ar&s to re&uce the variabi)it of service. +hese stan&ar&s shou)& be customer &efine& an& customer e/pectation shou)& be consi&ere& ,hi)e &eci&ing about the service stan&ar&s.

108

De2e04.3e St!ate/6 12 Se!3.ce Kua7.t6: #!$% shou)& pursue a &efensive service .ua)it strateg that is a s)o, going strateg rather than offensive service strateg . +hat is shou)& focus on %osts of operation, increasing ;o)ume of businesses ,ith e/isting )o a) customers, !egmentation of the premium customers, foster a positive ,or& of mouth communication in its e/isting customers, etc. +hough these strategies ,i)) take time to &eve)op a huge customer base, the ,i)) in the )ong run bring more )o a) customers to #!$%. Fa4te! De7.3e!6 12 ATM ca!54: #!$% shou)& re&uce the amount of time re.uire& to provi&e ne, A+M car&s. %urrent) it takes 2 ,eeks ,hi)e some competitors can provi&e the car& ,ithin 2 ,orking &a s. As the #!$% A+M car& comes &irect) from #ong Bong &e)a s are obvious. #!$% shou)& make necessar arrangements to pro&uce the ne, car&s )oca)) in or&er to re&uce the customer &ifficu)ties face& in the absence of A+M car&. A53e!t.4.0/ C 8!191t.10: #!$% shou)& pursue an aggressive a&vertising campaign in or&er to bui)& up a strong image an& reputation among potentia) customers. -n this conte/t, the va)uab)e strengths shou)& be use& for positioning the corporate image of the bank. +; a&s shou)& be aire& to reach a ,i&er arra of customers. +he a&s shou)& capita)i<e on bui)&ing strong re)ationship, nee&s of customers an& .ua)it service of the bank rather than features of pro&ucts. +hus an& offensive marketing strateg emphasi<ing customer satisfaction an& service .ua)it can bring va)uab)e business for the $ank. E7.9.0at.10 12 C10t!act E9 716ee4: %ontract emp)o ees shou)& be e)iminate& from the customer service &epartments as the )ack the commitment an& ,i))ingness to serve customers. 'ne serious mistake can take a,a va)uab)e customers an& ears of re)ationship. C10t!17 13e! the Ma.7.0/ Net;1!=: #!$% shou)& strict) monitor the courier services that are engage& in &e)ivering mai)s an& &ocuments. #uge amounts &e)iver fai)ures are being pi)e& up at branches. !o

108

#!$% shou)& have some contro) over its couriers an& ensure proper &e)iver of mai)s an& &ocuments.

##-$ Rec199e05at.104 21! F.0a0c.a7 8e!21!9a0ce

E22.c.e0t U4e 12 A44et: 7rom the tren& ana) sis of Asset Uti)i<ation Ratio, it has been foun& that the ratio has got a &ecreasing tren& in 200L. +his means that asset is not being uti)i<e& proper) . #!$% shou)& take appropriate actions in or&er to uti)i<e it assets proper) . C104u7t.0/ F.0a0c.a7 A0a764t 1! S ec.a7.4t: 'n a regu)ar basis, #!$% shou)& consu)t both the )oca) an& internationa) financia) ana) sts. +he might have in1house financia) e/perts. $ut to be more accurate in fin&ing out the prob)ems an& &etermining the possib)e va)i& so)utions the shou)& a)so hire outsi&e financia) ana) st. Ma.0ta.0.0/ a We77"ba7a0ce5 81!t217.1: -n or&er to increase the profitabi)it an& re&uce the cre&it risk, #!$% $ang)a&esh shou)& maintain a ,e))1ba)ance& portfo)io. 7or e/amp)e, instea& of focusing on 0ust corporate banking an& high profi)e business )oan an& )easing, it shou)& a)so give e.ua) importance to retai) banking. +he more &iversifie& the portfo)io is the )esser the risk of )osses. Re5uc.0/ the Ca ac.t6 Rat.1 t1 a T17e!ab7e Le3e7: +he %apacit Ratio has been increasing &ramatica)) over the )ast four ears. -t means that the amount of )oans an& )easing has been increasing much more compare& to the increase in assets. +herefore #!$% shou)& )imit the amount of )oans to have better contro) an& avoi& bankruptc . C14t C10t!17: -n or&er to improve the ?et -nterest Margin an& ?et 'perating margin, #!$% ,i)) have to focus on ever e)ement of operating an& non1operating e/pense. -f the bank can re&uce the cost, it ,i)) resu)t in the improve& margins.

108

C<A8TER #$: CONCLUSION

%onsumer banking in&ustr has been treate& as a prospective financia) sector in $ang)a&esh. More an& more banks an& non1bank financia) companies are entering the in&ustr . +he in&ustr became so attractive that mu)tinationa) bank )ike #!$% has entere& the market an& ,ants to )ea& the market. #o,ever, the entrance of banks )ike #!$% has brought revo)utionar changes in banking services. Peop)e get better service than ever before. -t becomes )ot easier for peop)e to get )oans an& investing mone into &iversifie& portfo)ios. !ophisticate& services )ike A+M, Phone banking etc. has been brought b this ne, generation banking. As the services improve& ,orkf)o, of the banks has been change& & namica)) as ,e)). $anks use more sophisticate& ,a s to assess )oans. Iuick assessment process pressuri<es the )oan officers to use sophisticate& ,a s of )oan assessment. +hough #!$% use it=s o,n investigation a)ong ,ith thir& part investigation for )oan assessment the ,ho)e proce&ure ma be &eve)ope& furthermore. %entra) bank ma become more he)pfu) b provi&ing he)ps )ike hosting &atabase 4about customers5 on the net.

108

REFERENCES

15 $ang)a&esh $ank "Annual Report July 2004-June 2005, Dhaka.2003. 25 Bot)er Phi)ip, "principles of Marketing, Prentice ha)),12th e&ition, A5 Ma)hotra ?.B, "Marketing Research-an applie orientation*,2th e&ition L5 httpOO,,,.goog)e.com 49)ectronica)) accesse& on 12th ?ovember, 20105 25 ,,,.hs!c"co#"! $%$&A'%"""$content$!angla esh60$"""$off'notes'0("p f

108

e05.:
S-L N1:

Kue4t.100a.!e:

A Su!3e6 O0 Fact1!4 a22ect.0/ <SBC C104u9e! 8!15uct@ C!e5.t O e!at.10 C C177ect.10 8!1ce5u!e .0 Ba0/7a5e4h 4-f ou are habituate ,ith cre&it operation in banking sector, P)ease share our vie,s about this. P)ease rea& the fo))o,ing .uestions carefu)) an& give our options5 Na9e A/e > > $e)o, 22 L21Above Se: > Ma)e 7ema)e $usiness 'thers 130001A2000 A30001 !ervice 221A2 A2 F L2

Occu at.10 1! !e4e0t 4tatu4> !tu&ent #ouse,ife M10th76 I0c19e : L2000 120001A2000

108

L20001 Above Le3e7 12 E5ucat.10 > !econ&ar Un&er 8ra&uate Date 12 I0te!3.e;> WWWWWWWW #igher !econ&ar Post 8ra&uate 8ra&uate

Wh6 51 61u 7.=e <SBC c104u9e! !15uct C C!e5.t 1 e!at.10L >87ea4e t.c=? 25 Iua)it service L5 :oan 35 7)e/ib)e 85 ke resources

15 %ustomer !egments A5 Avai)abi)it 25 !tatus J5 !kip customer

K#- <1; 12te0 51 61u ta=e c!e5.t 2!19 <SBCL 15 Regu)ar) A5 !ometimes 25 'ften L5 ?ever

K$- What c19e4 t1 61u! 9.05 ;he0 61u th.0= C!e5.t O e!at.10 .0 Ba0/7a5e4hL a5 b5 c5 Cu4t19e! Se/9e0t4: K%-What .4 61u! 1 .0.10 ab1ut 8e!410a7 F.0a0c.a7 Se!3.ce4 .0 <SBC C!e5.t 1 e!at.10L a5 b5 c5 K&- Wh.ch 12 the 21771;.0/ 2act1! 4h1u75 be c104.5e!e5 .0 ca4e 12 c!e5.t 1 e!at.10L 15 %onsumer 7inance 108 &5 e5 &5 e5

25 %ommercia) $anking A5 Private $anking L5 %orporate, -nvestment $anking an& Markets K'- D1 61u th.0= that <SBC c104u9e! !15uct C c!e5.t 1 e!at.10 .4 .0 a bette! 14.t.10 .0 c19 a!.410 t1 1the! Ba0=L Mes Ke6 !e41u!ce4: K(-What .4 the =e6 !e41u!ce4 12 <SBC c104u9e! !15uct .0 Ba0/7a5e4hL a5 &5 b5 c5 K)- I0 61u! 1 .0.10@ ;hat a!e the 4te 4 that 4h1u75 be ta=e0 t1 .0c!ea4e the =e6 !e41u!ce4 .0 <SBCL a5 b5 c5 K*- T1 9a.0ta.0 a 4ucce44.3e c!e5.t 1 e!at.10 ;h.ch 12 the =e6 !e41u!ce4 a!e 0ee5e5L 15 25 A5 L5 Statu4: K+- <SBC c104u9e! !15uct a05 c!e5.t 1 e!at.10 .4 a 9ea04 12 4h1;.0/ 4tatu4L D1 61u a/!ee ;.th th.4L !trong) agree 1 Agree 2 ?eutra) A Disagree L !trong) &isagree 2 Management time %apita) #uman resources -nformation techno)og &5 e5 e5 ?o

K#,- Bu4.0e449e0 a!e 9a.076 .03173e5 ;.th <SBC c!e5.t 1 e!at.10L

108

o o .tA4:

Mes ?o

K##- <SBC c104u9e! !15uct C c!e5.t 1 e!at.10 .0c!ea4e the 4tatu4@ becau4e 12 15 9fficient Performance 25 Distinct !che&u)e A5 Distinct 'perating Proce&ures L5 !trong %orporate -&entit > L1a0: K#$- What e!ce0ta/e 12 the 71a0 9u4t the c177ate!a7 !e !e4e0tL 1520K L5 80K 2530K A5J0K

25H0K 1 above

K#%-What .4 the e!.15 12 !e a69e0t 12 the 71a0L 15 Month) A5 Annua)) 25 Iuarter) L5 'thers.

K#&- It .4 3e!6 9uch 27e:.b7e t1 ta=e C!e5.t 2!19 <SBC- D1 61u a/!ee ;.th th.4L !trong) agree 1 Agree 2 ?eutra) A Disagree L !trong) &isagree 2

K#'-<SBC c!e5.t 1 e!at.10 cha77e0/e4 a77 1the!4 c!e5.t 1 e!at.10- D1 61u a/!ee ;.th th.4L !trong) agree 1 Agree 2 ?eutra) A Disagree L !trong) &isagree 2

K#(- What a!e the te!94 12 71a0 !e a69e0tL 15 !hort1term 25 Me&ium1term

108

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