Acknowledgement
It is our concession to thank ................... ,
Lecturer
of Department of Business Administration, ................. University for rendering us
his expertise knowledge and giving the opportunity of practical experiences
through this assignment.
Practical Knowledge is fundamental for
the application of theoretical intelligence. Being this in mind the course
teacher assigned to
prepare this assignment to the students of the
course “Principles
Management” We cordially thank the honorable teacher to provide us
the opportunity to apply class room learning practice. This assignment bridges
the gap between them.
We also convey our deep gratitude to
those people who have helped us to collect this information and supported us.
Letter of
TRANSMITTAL
Date
...................
Lecturer
Department
Of ......................
........... University
Subject:
Submission
of Term Paper
Dear Madam,
With the due respect it is our pleasure to present the term paper on
‘BRAC BANK’. While preparing the report we have tried our level best to focus
closely on the topic and try to collect most complete and updated information
available. We believe that it will provide a clear idea about ‘BRAC BANK’.
To prepare this term paper, we have given best effort to accumulate
needed information.
We will be available to answer any question for clarification. Thank you
for your sincere support.
Sincerely yours,
On behalf of our group
.....................................
Executive
summary
The core
competence of the BRAC Bank is to provide the fastest loans to the clients in
this country. To retain this competitive advantage BRAC Bank would provide
computer and palmtop facilities whether they can give fastest services to
clients than other banks. Also to convey the customer focus, BRAC Bank is
trying to reduce collateral securities than other banks. It provides more collateral
free secured loans to capture the market. Regarding the services by the CRO,
almost all clients are satisfied by getting these
quick facilities
from them. Though Retail banking is one of the major divisions of this bank,
BRAC Bank is
trying to develop economic condition of the country. So the bank provides loan
facility 3 to 30 lack taka to that small and medium enterprise that has no easy
access to banks/financial institutes. The bank already established 91 Zonal
offices and 429 unit offices all over the country and 1309 Customer Relation
Officers (CRO) providing door-to-door service to clients. Till April 2009, the
bank provides loan facilities to 265,000 clients which amount is Tk. 10,000 core.
The success of SME will largely depends on the selection of a business and man
behind the business. BRAC Bank provides this
facility to those whose business operation is minimum one year and environment friendly
business. It provides no loan facility to tobacco business. The business should be legally registered and must have
valid trade license. The entrepreneur should be physically able, preferably
between the ages 25 to 50.
Table of
Content
Title
|
Page No
|
CHAOTER-1
|
|
Background of the study
|
6
|
Purpose of the study
|
7
|
Scope of the study
|
7
|
Methodology
|
8
|
Limitation of the study
|
8
|
CHAOTER-2
|
|
Mission
|
9
|
Vision
|
10
|
Goal
|
10
|
Objective
|
11
|
Product & Service
|
12
|
Future Plan
|
13
|
CHAOTER-3
|
|
Managerial function
|
14-15
|
CHAOTER-4
|
|
Social responsibility
|
16-17
|
CHAOTER-5
|
|
Conclusion
|
18
|
Recommendation
|
19
|
Reference
|
20
|
CHAPTER-1
Introduction
Though BRAC Bank was formed with the aim to serve the millions of small and medium enterprises (SMEs) in the country. Having pioneered the concept of SME financing in Bangladesh, it is the fourth largest SME bank globally. The company also provides services within corporate and institutional banking, retail banking, as well as probashi banking, which specifically caters to non-resident Bangladeshis abroad. Other areas include customized treasury and foreign exchange solutions, and custody services. It ranks amongst the top banks nationally that processes remittances from abroad. So, all of this I choose Brac Bank as my case study.
Purpose of the study
Though
the main purpose of the study ourselves in such a manner as though we can equip
ourselves with the practical field as well as we will be able to know the
different aspects of the banking sector and to evaluate how bank is performing
in different sectors. To get the overall consumer banking view of the bank I
had to find out the activities of managerial function & social
responsibilities of this bank.
Scope of
the study
This
report deals with the organizational structure, products , services, managerial
function and CSR activities of BRAC Bank Ltd.
The
study will provide the scopes of knowing the following:
a)
The managerial function of Bank
b)
The social responsibility of the company.
Methodology
We
have conducted a primary survey for collecting the necessary data from the Bank
manager. There are three types of research reports:
descriptive,
exploratory and causal research. This report is a descriptive report as it is
giving the overall view of the BRAC Bank. This research is prepared both with
primary data and secondary data.
Data Collection:
Both
primary data and secondary data were collected to organize this report. But the
report is basically emphasized on secondary data.
· Primary Data were collected from the informal discussion with the manager
of the organization.
· Secondary data was collected from different sources e.g. annual report of
the
organization,
web sites, reports, prospectus, journals, newspaper etc.
Limitation
of the study
Although
I have got co-operation from manager of BRAC bank, The major limitations that the study faced
during the study period are spot lighted below:
Ø The major problem I have faced is lack of understanding.
Ø Bank is a very busy financial institution.. So, it is very
much tough for me to allocate time for collecting data and taking interview of
the bank manager.
Ø As most of the data is collected from secondary sources,
there was very little opportunity to analysis data.
Ø Time constraint is one of the problems, for which it has
been difficult for us to gather enough knowledge.
CHAPTER-2
Company Overview
BRAC Bank Limited is a full
service scheduled commercial bank. It has both local and International
Institutional shareholder. The bank is primarily driven with a view of creating
opportunities and pursuing market niches not traditionally meet by conventional
banks. BRAC Bank has been motivated to provide “best-in-the-class” services to
its diverse assortment of customers spread across the country under an on-line
banking dais.
At present, BRAC Bank is one of
the fastest growing banks in the country. In order to support the planned
growth of its distribution, network and its various business segments, BRAC
Bank is currently looking for impressive goal oriented, enthusiastic,
individuals for various business operations.
The bank wants to build a
profitable and socially responsible financial institution. It carefully listen
to the market and business potentials, It is also assisting BRAC and
stakeholders to build a progressive, healthy, democratic and poverty free
Bangladesh. It helps make communities and economy of the country stronger and
to help people achieve their financial goals. The bank maintains a high level
of standards in everything for our customers, our shareholders, our
acquaintances and our communities upon, which the future affluence of our
company rests.
According to the Half-Yearly
Financial Statement of 2010- the number of Employees including contractual
engaged for the whole year or part there of (who received a total yearly
remuneration of Tk. 36,000 or above) were 6,306 where as the total number of
employees were 7,075 as the same period of pervious year.
Mission
BRAC
Bank Limited wants to be the absolute market leader in the number of loans
given to small and medium sized enterprises, service holders, teachers,
students, immigrants and people belong to all income and professional groups
throughout Bangladesh. It tries to be a world-class organization in terms of
service quality and establishing relationships that help its customers to
develop and grow successfully. It wants to become the Bank of choice both for
its employees and its customers, the model bank in this part of the world. The
missions that BBL follows are-
·
Sustained
growth in 'Small & Medium Enterprise' sector.
·
Continuous
low cost deposit growth with controlled growth in Retained Assets.
· Corporate Assets to be funded through self-liability
mobilization. Growth in Assets through Syndications and Investment in faster
growing sectors.
·
Continuous
endeavor to increase fee based income.
·
Keep Debt
Charges at 2% to maintain a steady profitable growth.
·
Achieve
efficient synergies between the bank's Branches, SME Unit Offices and BRAC
field offices for delivery of Remittance and Bank's other products and
services.
·
Manage
various lines of business in a fully controlled environment with no compromise
on service quality.
·
Keep a
diverse, far flung team fully motivated and driven towards materializing the bank's
vision into reality.
Vision
The
vision of BBL is- Building a profitable and socially responsible financial
institution focused on Markets and Business with growth potential, thereby
assisting BRAC and stakeholders build a "just, enlightened, healthy,
democratic and poverty free Bangladesh".
Goals
BRAC
Bank will be the absolute market leader in the number of loans given to small
and medium sized enterprises throughout Bangladesh. It will be a world class
organization in terms of service quality and establishing relationships that
help its customers to develop and grow BRAC Bank will be the absolute market
leader in the number of loans given to small and medium sized enterprises
throughout Bangladesh. It will be a world class organization in terms of
service quality and establishing relationships that help its customers to
develop and grow.
Objective
The
objective of BRAC Bank Limited is specific and targeted to its vision and to
position itself in the mindset of the people as a bank with difference. The
objectives of BRAC Bank Limited are as follows:
Ø Building
a strong customer focus and relationship based on integrity, superior service.
Ø To
creating an honest, open and enabling environment.
Ø To value
and respect people and make decisions based on merit.
Ø To strive
for profit & sound growth.
Ø To value
the fact that they are a member of the BRAC family – committed to the creation of
employment opportunities across Bangladesh.
Ø To work
as a team to serve the best interest of our owners.
Ø To
relentless in pursuit of business innovation and improvement.
Ø To base
recognition and reward on performance.
Ø To
responsible, trustworthy and law-abiding in all facts that a Bank do.
Ø To
mobilize the savings and channeling it out as loan or advance as the company approve.
Ø To establish, maintain, carry on, transact and undertake all
kinds of investment and financial business including underwriting, managing and
distributing the issue of stocks, debentures, and other securities.
Ø To
finance the international trade both in import and export.
Ø To
develop the standard of living of the limited income group by providing
Consumer Credit.
Ø To
finance the industry, trade and commerce in both the conventional way and by offering
customer friendly credit service.
Ø To
encourage the new entrepreneurs for investment and thus to develop the
country’s industry sector and contribute to the economic development.
Product and Service
They have some product those are
1. Credit Card
2. Debit Card
3. Prepaid Card
4. Salary Loan
5. Quick Loan
6. Home Loan
7. Secured Loan
8. Auto Loan
They also provide some service those are
1. Currents Accounts
2. Fixed Deposit Accounts
3. Savings Accounts
Savings Accounts of
BRAC Bank Ltd:
1. Triple Benefit Savings Account.
2. Savings Classic Account.
3. Aporajita Account.
Future plan
BRAC Bank lunched its new product Future state Account of the
children below the age 18 at a ceremony in the city Sunday, said press release
.
It is a saving account, designed to encourage school children
to develop savings habit and enabling parent to save for their children’s future.
The account opening amount for Future Star Account is BDT 200
and there is up to 8.0 per cent interest on account balance subject to
fulfillment of criteria. The interest is accrued on monthly average balance and
applied to customer account yearly. There is no account maintenance fee and
service like internet banking, phone banking and SME banking are available.
BRAC Bank Limited Director Shib Narayan Kairy , Managing
Director and CEO AEA Muhaimen , Deputy Managing director syed Mahbubur Rahman
and Head of Retail Banking firoz Ahmed Khan were present at the lunching
ceremony.
CHAPTER-3
Managerial functions of the BRAC Bank
BRAC
Bank is a fully operational Commercial Bank. This Bank is focused to introduce
fully integrated online banking service to provide all kinds of banking
facilities from any of its conveniently located branches. BRAC Bank is mainly
performing in six major business areas with high reputation. These areas are-
Small
& Medium Enterprise (SME)
Corporate
Banking
Retail
Banking
Treasury
Remittance
Services
Premium
Banking
All
the units are being operated in a centralized manner to minimize costs and
risks.
As
I have accomplished my internship on retail banking, this report is basically
focused on the retail operation and products of BBL. But, for the convenience
of analysis, I have considered the whole organization.
Boards of directors are the sole authority to take
decision about the affairs of the business. Now there are 5 directors in the management
of the bank. All the directors have good academic background and have huge
experience in business. Mr. A. Rumee Ali is the chairman of the bank. The board
of directors holds meetings on a regular basis. Now the Managing Director of
the bank is Mr. A. E. A. Mohaimen. The bank has made a reasonable progress due
to its visionary management people and its appropriate policy and
implementation.
Organizational
structure of the BRAC Bank Limited
Board of Directors
|
Chairman
|
Managing Director
|
Deputy Managing Director
|
Head of Retail
|
Head of Distribution
|
Branch Manager
|
Customer Service Manager
|
Branch Sales and Service Manager
|
Branch Sales and Service Officer
|
CHAPTER-4
Social Responsibility of the BRAC Bank
Since the inception as a responsible corporate body BRAC
Bank Ltd. has undertaken various initiatives considering the interest of
customers, employees, shareholders, communities and environment. These
initiatives go beyond the statutory obligation/mandatory compliances to
voluntary activities that promote sustainable development. BRAC Bank’s vision
which focuses on double bottom line that it should make decisions based not
only on profit but also based on social and environmental consequences is
closely linked to the principles of CSR.
Corporate Social responsibility (CSR) is a fundamental part
of the way BRAC Bank does business. It’s an opportunity to build better
relationships with all stakeholders by paying closer attention to how we
fulfill our social, economic, environmental and ethical responsibilities. CSR
allows us to align our operations with standards and expectations that are
increasingly important to our shareholders, employees, customers and
communities where we operate.
While most of our overall environmental impact is indirect,
resulting from our financing and investment activities, we also have a direct
impact on the environment through our day-to-day business operations. We are
working towards reducing waste and the more efficient use of resources. The
second step is reducing our indirect environmental impact by managing our
investing activities.
Reduction in use of the paper
Paper continues to be the most significant single material
input to our business. We use paper in the office and in the production of
customer information documents. A4 paper use is a major component of our office
based paper usage. Reducing the use of paper and recycling it, provide both an
environmental and economic benefit, and some of the initiatives taken by us
during the year are;
Ø We insist on double-sided printouts
and photocopies wherever relevant.
Ø Paper communication between the
divisions/Customer centers of BRAC Bank has been replaced with on-line
communication where possible, resulting in significant reduction in paper
usage.
Ø We have converted selected staff
training sessions into our E-learning process, which has resulted in reduced
paper usage on training materials.
CHAPTER-5
Conclusion
Today
banking business becomes more competitive than before. Now customers are more
aware and become smart to compare between the banks. And then choose the most
convenient bank for them for dealing with their hard earned cash and business
finance. Considering the fast moving and altering business era in the world
each and every business organizations need to upgrade their ways of business to
keep pace in the changing situation. It is very true that the most of the
customers do not hesitate to term BRAC Bank better than other banks. But it
should also be considered that the customers have very few choices of banks
with which they can actually compare the Consumer Banking services of BRAC
Bank. The bank has successfully made a positive contribution to the economy of
Bangladesh with in very short period of time. Its profit is gradually
increasing. The local banks have recently focused their attention to customer
service, satisfaction regarding deposit-banking services. Moreover there are a
good number of private banks that are into the competition. Therefore it is
better for BRAC
Bank
not to let the situation be worst and should emphasize on serving customers
effectively and efficiently to ensure better services.
Recommendations
However
the satisfaction level of BRAC Bank is good enough. But some customers have
expressed their dissatisfaction about the BRAC bank in various aspects. It has
a profound effect on the overall satisfaction level of the bank. The following
are some recommendations for the company:
1. Bank has to satisfy its customer at any cost. Even if the
customer is wrong in that case also, even then the officers should not make any
rough behave to the
Customer. Because customers are
everything for a bank. The employee of BBL should show a sincere interest in
solving the customer’s problem.
2. For maintaining the relationship with the customer,
employees have to give all types of support to the customers.
3. Officials should be more cooperative with the clients.
4. Officials should be faster during transaction.
5. There are a lot of banks now in Bangladesh and customers now
have lots of options. So a bank should do everything possible for them to do to
retain its customer.
6. Bank should be more innovative and diversified in its
services.
7. Some customers said that the service charges of BRAC bank
are comparatively higher than other bank so it should be reduced if possible.
Otherwise it can be a threat for the bank in future.
8. company should ensure greater CSR activities for the purpose
of general people.
Thankyou
Thankyou
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