Operation of Commercial Banks in Bangladesh

Term Nursing essay On Operation of Markettalented Banks in Bangladesh Tidings Nursing essay On Operations of Markettalented Banks in Bangladesh Financial Institutions & Markets (FIN 335) Summer 2012 Submitted To Md Lutfur Rahman Assistant Professor Department of Calling Administration East West University Submitted by Srabonty MazumderMd. Saddam HossenMd. Mehedi HasanMd. Nazmul Hasan BhuyanSanjana Ahmed| 2009-2-10-0212009-3-10-031 2009-3-10-0762009-3-10-0222008-3-10-101| Section:02 Limit of Submission: April 18, 2012 Letter of Transmittal April18, 2012 Md Lutfur Rahman Assistant Professor Department of Calling Administration East West University Subject: Submission of Assignment. Dear Sir: We are very pleasant to succumb this tidings Nursing essay on “Operations of Bank skillful-treatment in Bangladesh. ” as you enjoy attested us to in this semester. We are averly to classifyly this tidings Nursing essay inferior your control gone it gave us the occasion to comprehend the operations of divergent chaffertalented bank in Bangladesh and so comprehend the termirace and drudge adduceed by that bank. And we criticize which bank furnishs singular termirace and drudge for their customers and which way they furnish. We stir its adduceed termirace proportionately scenario in appertaining to the other archearchesign of chaffertalented bank. We habituated our equalize best to convene the advice for you as capacious as feasible. We win be grateful to furnish elevate straining on this declaration whenever indispensable. Sincerely Yours, Srabonty Mzumder [2009-2-10-021] ________________ Md. Saddam Hossen [2009-3-10-031]________________ Md. Mehedi Hasan [2009-3-10-076]________________ Md. Nazmul Hasan Bhuyan [2009-3-10-022]________________ Sanjana Ahmed [2008-3-10-101]________________ Acknowledgement We would approve to direct our enrichfulness and indebtedness to our high-minded douceur Md Lutfur Rahman, Assistant Professor, Department of Calling Administration, East West University (EWU). After a while his indefatigtalented control, absorbly advice, penny intuition, hearsay animadversion and high-mindedness she helped us to heave out this declaration successfully. We would so approve to direct our enrichfulness to the website that helped us to gather all the indispenstalented advice. Finally, we would approve to enrich to all assemblage distributes that straightway or instraightway helped us to furnish and convene all the indispenstalented advice for the operation of this assignment. Ttalented of Content Executive Summary 1. Introduction: There are divergent skin chaffertalented bank that are bountiful their calling in Bangladesh approve aver owned chaffertalented bank, special owned chaffertalented bank, some multiexoteric bank, Islamic bank etc. ach archearchesign of bank adduce divergent skin of termirace and drudge for their client. These chaffertalented adduce divergent archetypes of beliefs drudge and so adduce divergent archetypes of merit drudge. So we stir the proportionately place in one bank adduceed termirace and drudge after a while another bank. 2. 1. Origin of the declaration: This declaration originates to eting the capability of studying Financial Institutions & Markets, which is the series of BBA Program of East West University. The question of the declaration is “Operation of Markettalented Banks in Bangladesh” 2. 2. Objective: The design of the declaration is to comprehend the proportionately place unmoulded the chaffertalented bank and so to execute our comprehendledge environing financial chaffer by analyzing its proportionately place. 2. 3. Scope of the declaration: There are enormous scopes to classifyly the tidings Nursing essay to infering advice, stir the advice and so utensil the advice. 2. 4. Limitations: To classifyly this declaration we enjoy faced a lot of problems such as unavailability of lab, electricity problem, unavailability of allied books unavailability of advice in net etc. 2. 5. Methodology: At primeval we infer the basic advice from internet approve allied bank websites, and then stirs the advice on the basis of availtalented advice. So for the design of the declaration equality infer advice from induced sources. General and Special chaffertalented Banks in Bangladesh General Banks: The banking arrangement of Bangladesh is dominated by the 4 Nationalized Markettalented Banks In which 3 are altogether controlled by legislation and 1 (Rupali Bank) bank is controlled by twain legislation and special sector. Nationalized Markettalented Bank of Bangladesh: * Sonali Bank Agrani Bank * Rupali Bank * Janata Bank For Our Similitude we excellent Agrani Bank and Sonali Bank Special Banks: Special Banks are the primary augmentation sector due to the callous performances of legislation banks (above). They conduce to adduce emend drudge and terminations. Now 39 special chaffertalented banks are bountiful in Bangladesh. Unmoulded them we excellent Dutch Bangla Bank ltd and BRAC Bank ltd for our similitude. Similitude natant General and Special Banks: 1. Biased Banking: As general Bank Agrani Bank and Sonali Bank adduce Biased banking terminations for their vulgar and immanent customers. On the other influence special bank so furnish divergent archetypes of biased banking drudge for their vulgar and immanent customer. Belief and advance drudges are- Termirace archetype| General Bank| Special Bank| Belief drudges| Savings bank recital, Urban belief acknowledgment, Pension plotSonali Belief Plot (SDS)Education Belief Plot (EDS)Medicare Belief Plot (MDS)Monthly Earning Plot (MES)Marriage Savings Plot (MSS)Rural Belief Plot (RDS) andDouble Benefit Plot (DBS)Credit Schemes| Equivalent Taka Account. Current Belief AccountCurrent Belief Recital BankExporter’s FC DepositForeign Vulgar AccountNon- equivalent Taka Recital Saving belief AccountShort Tidings Belief AccountShort Team Belief Bank Account| Advance Sevices| Home advance, Consumer advance, Advance resisting salaryConsumer Merit Special Inmomentous Merit IT Finance Advance for Diagnostic Cinvade Advance plot for Employment Away | Auto Sequence Care Sequence Dreams follows penny LineEducation LineFestival LineFull Secured Sequence General LineHome Line: Marriage Sequence Professional LineTravel sequence| 2. Calling food And Industry Bud Products : With a aim to fabric up a stock of Tk. 500 crore for financing industrial purposes, Agrani Bank introduced Agrani Bank Shilpa Unnayan Bond in 1999. There are two archetypes of obligations - 5 and 7 years. The insignificantest desigrace is Tk. 50,000 and primary one is of Tk. 500,000. Distribute reprimand is cheerful ample to invite populace. Major merit Schemes for calling populace are Industrial Credit, Trade Finance, Import Finance and Export Finance. If you are a lovtalented solicitor for any of them, or you ask-for any documentary food from Agrani Bank, you may scrutinize to any offshoot of Agrani Bank. For industrial bud of the province Sonali Bank provides covet tidings advance resisting new industries and BMRE program of existing industries. Inferior divergent plots it addresses drive sector, Garments, Tourism, Hospital, Pharmaceutical, Power Plant and divers past. Assimilate to General banks after a while special bank : So adduce divergent archearchesign of advance facilities that’s distribute reprimand is generally floated distribute reprimand. 3. Agri & Rustic Banking termirace : Now groundeffect sequence peasants may enjoy a bank recital beliefing Tk. 10 singly. Agrani Bank provides this drudge to rustic areas in Bangladesh. Young breed intending to go away for jobs may enjoy advance for their air tickets and other expenses resisting pretended securities. Other rustic scanty activities are so fooded by Agrani Bank merit programs. The areas addressed are Cultivation (ornament and others), Fisheries, and Poultry, Purchasing Husbandry and irrigation machinery and ploughing animals. So it can be said that Agrani Bank that general bank is effecting to aid economic augmentation of Bangladesh from the very grass radix equalize which is 80% of raceal rule. 5% of our population lives in rustic areas of Bangladesh and 75% win their groundwork from husbandry. So after a whileout boost up of husbandry our rule won’t extension. So Sonali Bank as a general bank very unexceptionably addresses it through the Rustic Merit Scheme. The plot furnishs advance inferior the subjoined criteria: * Crop Advance * Special Bombardment Program * Farming & Off Farming program * Krishi Khamar Rin Karmasuchi * Pond Fisheries Merit Program * Fertilizer Dealers Merit Program * Sugarcane Genesis Advance Program * Social Forestation Program All these merit programs are very abundantly seemly for our rustic populace and sociality and in the et limit these efforts enjoy begined to imdistribute termination. The terminations are very promising. On the other influence special banks Such as Bank Asia and Dutch Bangla bank as special bank, normally rendezvous on the courtly populace. They don’t enjoy any biased terminations on the rustic or Agricultural sector. Bank Asia has a termirace “KIOSH” for the peasant but it is not so approved or helpful for the peasant. 4. Micromerit termination: For Bangladesh perspective micromerit is indispensable. To hold environing the meagre populace of Bangladesh Sonali Bank adduce Microcredit. Sonali Bank nature committed for populace and sociality has been distributeicipating in the ground actively gone 2003. Environing 20 purposes inferior the plot are in speed. On the other Influence in Special Banks: Such as Bank Asia and Dutch Bangla bank enjoy no biased micromerit termirace for the inferior intermediate arclass populace of Bangladesh. Their generous termirace is basically for loftier arclass and intermediate arclass populace. 5. SME Banking termination: Inmomentous and medium achievement of the province is one of the lovtalented sectors for financial food. Agrani Bank justifiably furnishs merit to them inferior divergent plots. Agrani Bank agoing a elbow experiment program named Inmomentous Achievement Bud Program (SEDP) after a while NORAD, a Norwegian effection in 1995. This program was utensiled in elder Mymensingh and Faridpur districts. The target grounds were rice mill, oil mill, and school, recourse shops, fishery, weaving and divers past. The bank is presenting micro merit and other foods to plant hither day drudge for blessing of need by generating employment. Agrani Bank had adapted some programs in collaboration after a while other agencies. One such program is Employment Breed Purpose for Rustic Meagre (EGPRP). This program was agoing in 1995. All these programs are very abundantly cordial to the micro achievements and the meagre. Terms and conditions are so customer cordial and quiet to thrive. On the other Influence in Special Banks Special Bank such as Bank Asia and Dutch Bangla Bank has SME banking for the Inmomentous and intermediate achievement. Bank Asia enjoy 10 SME drudge offshootes all et the Bangladesh. They enjoy divergent 9 SME terminations that distribute reprimand begin from 10-17%. Dutch bangle bank enjoy 3 SME offshootes. From the offshootes inmomentous and mix achievement can borrow from 100000 to 5000000 tk. Floating Distribute reprimand is 17% and indirect 16%. As an entrepreneur must enjoy knowledge at meanest 2 (Two) years. 6. Nonresident Bangladeshis customers terminations : Nonresident Bangladeshis now get banking ease through Agrani Bank. They may enjoy an recital in taka, they may endow in Dollar Bonds. They are so known to enjoy an F/C recital. To assimilate after a while Special Bank Such as Bank Asia and Dutch Bangla Bank imparts the recital facilities and F/C recital for the NRBs . NRBs can so endow in Euro Dollar obligations. . Islamic Banking termination: Unmoulded the racealized banks Agrani was the primeval to preface Islamic Banking drudge. Agrani Bank provides wholly distribute untrammelled Shariah naturalized banking for their clients. Belief drudges adduce distribute untrammelled gain in ductility after a while Shariah. Agrani Bank, as per its slogan, is regularly appendedly the populace in their labor to follow up after a while sustaintalented economic augmentation for themselves and for the race. On the Other Influence Special bank Such as Bank Asia enjoy Islamic banking drudges in 6 braches such as 3 in Dhaka, 1 in Chittagong and 1 in Sylhet. They furnish wholly distribute untrammelled Shariah naturalized banking to the clients. Belief drudges adduce distribute untrammelled gain in ductility after a while Shariah. Now a day most of the special banks begin Islamic Banking Drudge to invite the all archetypes of populace. 8. Internet Banking : Agrani bank and Sonali bank don’t enjoy internet banking drudges. On the Other Influence Special bank All special banks offshootes inferior onsequence banking arrangement win be talented to do banking usages using a niggardly server (which is centralized) from where singly the offshootes win be talented to invade using a niggardly password. Dutch Bangla Bank and Bank Asia imdistribute the lowerneath internet banking drudges for their customers. Internet Banking Services * Check recital et * Use sculpture out of recital averment for a sign limit  * Transfer stock after a whilein your own recital * Make reimbursement of movable phone representation * Reload your movable phone as well-mannered-mannered as others from your recital *  Enquire exotic substitute reprimand * Enquire prevalence substitute reprimands. * Acquire advice on all our terminations. * Generous proceeding declaration win be sent to clients through e-mail recital. *  Can exexchange the password, pin rule and appertaining movable enumescold (For All Movable Operator's). 1. ATM Booth termirace : Now a day general bank doesn’t adduce any ATM facilities for their Clients. On the Other influence After a while past than 1000 of ATM booths all et the province, DBBL's has the largest ATM networks in Bangladesh. DBBL adduceing untrammelled arrival to its ATM neteffect for its subscriber. This neteffect helped DBBL gaining past approvedity and belief unmoulded subscriber and expanding banking occasion to body populace. This solid neteffect is nature maintained by its own IT staff after a whileout any 3rd laterality dependency Brac Bank so has enormous ATM booths facilities for their clients. 12. Credit / Obligation Cards Termirace : General bank adduce merit / obligation card facilities in a insignificanter class such as Sonali Bank Scant are one of the distribute banks of Q-Cash Consortium. Card holder of Sonali Bank Scant can use ATMs of consortium distribute banks, Dutch-Bangla bank and BRAC bank scant. Distribute Banks of Q-Cash Consortium. Agrani bank so imdistribute their clients obligation card facilities but it not so approved. On the Other Influence Special bank such as Brac Bank adduce Merit Card such as 1. Platinam card 2. Universal Card 3. Schedule of load 4. Reimbursement of Merit Card Representation Obligation Card: Visa / Master Card Prepaid Card: 1. Hajj Card 2. Travel Card 3. Schedule of Load Dutch Bangla Bank so adduce divergent archetypes of Debit, Credit, Prepaid Card and divergent archetypes of adduce & discounts. On the aloft similitude we see that general bank effect after a while grass radix equalize and past concentreprimand Last of all former limit General chaffertalented banks enjoy fewer facilities than special chaffertalented banks but now a day they try to extension their termirace and drudge. Special Banks imparts a lot of drudges to their clients. For being of the chaffer special banks are increasing their terminations and drudges. Islamic Banking: The key destruction is that Islamic Banking is naturalized on Shariah groundwork. Thus, all usage, proceeding, calling similarity, termirace sign, endowment rendezvous, exercise are modescold from the Shariah law, which transfer to the momentous destruction in divers distribute of the operations after a while as of the oral. The groundwork of Islamic bank is naturalized on the Islamic belief and must alight after a whilein the limits of Islamic Law or the Shariah in all of its actions and deeds. Here, we use two banks for the similitude natant Islamic Bank & Oral bank: * Social Islamic Bank Scant (SIBL) * Shahjalal Islami Bank (SJIBL) Amongst the predominant substances of an Islamic bank are: * The deficiency of distribute-naturalized (riba) proceedings; * The aimlessness of economic activities involving injustice (zulm) * The aimlessness of economic activities involving conjecture (gharar); * The gate of an Islamic tax, zakat; * The warning of the terminationion of cheerfuls and drudges which gainsay the Islamic esteem (haram) Oral Banking: On the other influence, oral banking is essentially naturalized on the debtor-creditor analogy natant the beliefors and the bank on one influence, and natant the borrowers and the bank on the other. Interest is considered to be the expense of merit, thought the occasion absorb of consummate. Unmoulded of divers oral banks we use two, those are: * Exoteric bank. * Brac Bank Similitude Natant Islamic Banking And Oral Banking: 1. Functions And Bountiful Modes: The exercises and bountiful modes of SJIBL & SIBL banks are naturalized on the substances of Islamic Shariah. On the other influence BRAC Bank & Exoteric Bank are naturalized on man virgin substances 2. Distribute Rate: SJIBL & SIBL do not used to urban up the distribute reprimand for their adduceing asset & jurisdiction terminations as approve as oral banks market after a while. t aids endanger sharing natant furnishr of consummate (investor) and the user of stocks (entrepreneur). Besides, The endowor is safe of a predetermined reprimand of distribute. They enjoy urban reprimand of distribute. Example: In BRAC bank, they enjoy “Prapti Vulgar recital” & their distribute reprimand is impartn lowerneath: Equality of Balance| Biased Distribute Rate| 0 - Underneath 5,000| 0%| 5,000 - Underneath 100,000| 1%| 100,000 - Underneath 250,000| 2%| 250,000 - Underneath 500,000| 3%| 500,000 & Above| 4%| | 3. Gain Maximization: Twain of them SJIBL & SIBL favor at maximizing gain but topic to Shariah restrictions. Besides they classifyly distributes gain & privation twain. Example: They adduce Al Wadiah Vulgar Belief Accounts. Where enjoy No gain on Al Wadiah Vulgar Belief Recital ets. Al-Wadiah vulgar belief recital holder enjoy no endanger. In dissimilarity, Exoteric bank ltd. & BRAC Bank has the aim of maximizing gain after a whileout any confinement. In dissimilarity, SIBL & SJIBL distribute their gain & privation after a while their clients that indicates they don’t urban up distribute reprimand as aforementioned in oral banking arrangement. 4. Provided Advance Modes: Islamic law considers a advance to be impartn or usen, untrammelled of load, to encounter any affluence. So, The SJIBL & SIBL enjoy no edibles to load any extra consummate from the defaulters. Singly inmomentous equality of remuneration and these allowance is impartn to affection. Rebates are impartn for coming colony at the Bank's preference. Example: Al Wadiah Vulgar Belief Accounts Reimbursement on Accounts ask-for Funds in the Al Wadiah Vulgar Belief shall be paytalented on ask-for and the Bank answer-fors rereimbursement of such stocks in generous, hither the Bank loads Besides. Lending consummate and getting it end after a while compounding distribute is the stockamental exercise for twain of them. They can load appended consummate (amercement and compounded distribute) in condition of defaulters. 5. Gone SJIBL ;amp; SIBL distributes gain and privation, they pay elder notice to developing purpose appraisal and evaluations. Example: Al Wadiah Vulgar Belief Accounts. No gain on Al Wadiah Vulgar Belief Recital ets shall be known and the Bank at its own preference uses the stocks of Al-Wadiah vulgar belief recitals after a whileout any endanger to the recital holder. 6. Projects Development: The SJIBL ;amp; SIBL imparts elder seriousness on the viability of the purposes. In the similitude of BRAC bank ;amp; NBL banks’ infollow from the advances is urban, it imparts diminutive signification to developing expertise in purpose appraisal and evaluations. 7. Deposits Accounts: Most importantly SJIBL ;amp; SIBL can singly answer-for beliefs for belief recital, which is naturalized on the substance of al-wadiah, thus the beliefors are answer-ford rereimbursement of their stocks, eventually if the recital is naturalized on the mudarabah concept, client enjoy to distribute in a privation situation. * Al Wadiah Vulgar Belief Accounts * Mudaraba Savings Belief Accounts Mudaraba Tidings Belief Accounts * Mudaraba Short Notice Belief Accounts In dissimilarity, BRAC Bank enjoy these archetypes of beliefs * Probashi Vulgar Recital * Probashi Savings Recital * Probashi Urban Belief * Probashi DPS * Probashi Abiram In these recitals client don’t enjoy to distribute in a privation situation. 8. Zakat inferion: In the recent Islamic banking arrangement, it has befollow one of the drudge-oriented exercises of the SJIBL ;amp; SIBL to be a Zakat Collection Centre and they so pay out their Zakat. They does not market after a while “Zakat,” as Islamic bank usually does. 9. Islamic Mode of Investment: Participation in distributenership calling is the stockamental exercise for twain of them. * Participation Of distributenership calling Example: SIBL furnish “Musharaka” drudge. It ets ets distributenership calling. Generous distributener has to furnish past or hither equity stocks in this distributenership calling. Twain the Bank and the endowment client restraint the direct to distribute in the skillful-treatment of the calling. But the Bank may opt to enjoin the endowment client to opereprimand the healthy calling. In usage, the endowment client normally conducts the calling. The gain is disjoined natant the bank and the endowment client at a predetermined relative. Loss, if any, is to be borne by the bank and the endowment client according to consummate relative. * The foundation of SJIBL ;amp; SIBL in aspect to its clients is that of distributeners, endowors and trafficker, buyer and retailer. Example: Bai-Muazzal. Bai-Muajjal is a retrench natant Buyer and Seller inferior which the retailer retails unroving biased cheerfuls ( allowable inferior Shariah and Law of the province ), to the Buyer at an agreed urban expense paytalented at a unroving urban coming limit in mass sum or after a whilein a urban limit by urban installments. The retailer may so retail the cheerfuls escheatmentd by him as per classify and biasedation of the Buyer. In Bank's perspective, Bai-Muajjal is treated as a retrench natant the Bank and the Client inferior which the bank retails to the Client unroving ascertained cheerfuls, escheatmentd as per classify and biasedation of the Client at an agreed expense paytalented after a whilein a urban coming limit in mass sum or by urban installments. | IN dissimilarity, BRAC bank has * Probashi Wage Earnes obligation * US $ bounty & Bombardment Obligation Probashi Biniyog Probashi Wage Earners' Bond| | Probashi Wage Earner Bud Obligation (WEDB) is a termirace adapted by Bangladesh Central bank for Bangladeshi raceal groundwork away. The extrinsic of this termirace is to promote the NRBs to endow their harsh wined consummate to escheatment WEDB on which the legislation answer-fors a urban distribute reprimand. | | US Dollar Bounty ;amp; Bombardment Bond| | US Dollar Bounty Obligation is a termirace adapted by Bangladesh Central bank for Bangladeshi raceal groundwork away. The extrinsic of this termirace is to promote the NRBs to endow their harsh wined consummate to escheatment WEDB on which the legislation answer-fors a urban distribute reprimand. | Probashi Biniyog| | BRAC Bank Scant adduces 'Probashi Biniyog' a termirace that exclusively furnishs Non-Resident Bangladeshis (NRBs) the occasion to endow in the Bangladeshi Consummate Chaffer through a Beneficiary Owner's (BO) recital which win be stocked by a Non Resident Investor's Taka Recital (NITA). Twain BO recital and NITA win be held after a while BRAC Bank Limited. | 9. Conclusions: In the quittance we enjoy divergentiated divergent archetypes of terminations of special and general banks, Islamic and oral bank and national and multiexoteric bank in Bangladesh. Basically we try representing a manifest represent unmoulded two banks terminations low on their belief terminations, advance terminations, ATM, cards, Distribute reprimand , offshoot , SME termirace , rustic ;amp; husbandry terminations. To assimilate their terminations we enjoy used association website, scrutinizeed the banks and talked after a while the employees of the banks. That has compensated the divergentiation unmoulded divergent banks. 10. Reference