January 13, 2012

Term-Paper on BRAC Bank


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


Background of the study


BRAC Bank is the last organization to have received a commercial banking license from Bangladesh Bank, making it the  youngest private  commercial bank  in Bangladesh.  Its headquarters are based in the capital Dhaka. The bank is partially owned by BRAC, the largest non-government organization in the world, International Finance Corporation, the private sector arm of The World Bank Group and Shore Cap International.
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 




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