Académique Documents
Professionnel Documents
Culture Documents
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1. BRAC Bank at a Glance
1.1 The Evolution of BRAC Bank Ltd.:
BRAC Bank Limited started its journey on the 4th of July 2001 originating from its source
BRAC Bangladesh Rural Advancement Committee. BRAC is known as the one of the most
successful NGO in the world. Mainly, BRAC Bank originated due to successful story of BRAC
microfinance. The Chairman, Mr. Fazle Hasan Abed believed that until modern, competitive
financial services are readily available including credit in amounts, terms and conditions that
small can access, Bangladesh will not be able to create the large middle class that is a
prerequisite to social stability. So, the BRAC Bank Limited came into existence due to the need
of mass financing, which wouldnt have been possible with BRAC microfinance itself.
Today BRAC Bank is considered as third generation bank extending full range of banking
facilities by providing efficient, friendly and modern fully automated on-line service on a
profitable basis. Since its inception, it has introduced fully integrated online banking service to
provide all kinds of banking facilities from any of its conveniently located branches.
1.2 Activities of BRAC:
BRAC has other core activities like school education, health care, micro finance, Aarong
handicrafts, university education, BRAC Dairy and Food Products, BRAC Vegetables etc and
now with the help of the BRAC Bank financing all types of enterprises and personal loans also
extensively focusing on SME.
1.3 Shareholders of BRAC Bank Ltd.:
BRAC Bank has number of investors or shareholders. They are as follows:
International Finance Corporation (IFC) the private sector arm of the World Bank
Group. IFC holds 19% share of BRAC Bank Ltd.
ShoreCap International Ltd. Holds almost 18% share of the BRAC Bank Ltd.
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To learn and gain knowledge about different departments and their functions.
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To know how different departments and its personnel uphold the vision, mission and values
of BRAC Bank Ltd. and perform their day to day operation.
To find out the way BRAC Bank Ltd. is different from other banks.
2.2 Scope:
This report attempts to disclose the experiences gained from training. In addition, the report
states about our views and the way we look at BRAC Bank Ltd.
2.3 Limitations:
Extensive workload at the work place poised as the most important barrier. Another important
limitation was the shortage of time to finish this report.
2.4 Various Findings:
In this section of the report few arenas have been focused such as how BRAC Bank is different,
culture of the bank and so on.
2.4.1 How BRAC Bank is Different from Other Banks:
BRAC Bank Ltd. is very different from other banks since its inception. The arenas that
BRAC Bank is different are as follows:
SME is the sector where BRAC Bank is the first bank to explore this large potential
market and started lending in large scale.
BRAC Bank is the first bank to introduce non stop banking transaction continuing till
8pm (evening banking).
BRAC Bank is also the first bank to provide 100% online banking facilities since its
inception.
Segregation of duty. This has helped the bank much in terms of monitoring and providing
quality service.
Lots of innovative retail products that has touched new sectors and found the market
potential like teachers loan, InstaCash, High Flyers Loan etc.
The branches of BRAC Bank does retail business but provide all types of services.
Treasury Front Office Mr. Pasha (In charge of Treasury Front Office)
Internal Control & Compliance Mr. Amzad Hossain (Head of ICC) & Mr. B.B.
Chowdhury (Manager, Internal Control & Compliance).
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Research the market to find out how big is the market for the new product
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Promotional activities.
LOGO: The logo of BRAC Bank has been made keeping in mind the goal of the organization.
The square structure of the logo means solid and strong. The golden color means the sonar
bangle, rising line means the rising BRAC Bank, and blue is the beautiful sky where sun is
shining brightly.
2.5.3 Central processing Center (CPC) Department:
CPC process some operation centrally. Main areas of CPC are:
a) Clearing
b) Cheque book printing
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Drawee Bank-Branch
Cheque Number
Cheque Date
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Cheque Type
Cheque Amount
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Foreign Exchange Company provides sufficient cover fund to their accounts with BRAC
Bank.
Exchange Company sends tested payment details instructions to BRAC Bank Head office
through e-mail / fax.
BRAC Banks remittance Department decodes the test number to check authenticity of
the message.
Issue and dispatch pay order to the beneficiarys bank or send payment instruction to
BRAC field office nearest to the beneficiary for making payment.
BRAC field office issue and dispatch account payee cheque to the beneficiarys bank or
make the beneficiary in cash.
Remittance department processes the SRS system manually. If they process the system
automatically, then it helps us to avoid the error of beneficiarys details. It will be same as the
Exchange Company sent us. The automation also helps for quires.
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Head
Headof
ofCredit
Credit
Credit
CreditAnalyst
Analyst
Legal
LegalOfficer
Officer
In
InCharge
ChargeRecovery
Recovery&
&
Risk
Management
Risk Management
Support
SupportOfficer
Officer&
&
Executive
Recovery
Executive Recovery
Financial statement
Study of account.
Market reputation.
Bangladesh Bank.
Different banks.
Personal interview.
Personal visit.
Other source: Registration Office, Press report, Registered Joint Stock Company (RJSC)
and so on.
Corporate Credit
Retail Credit
Recovery
Risk management
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Activities: Loan admin. department work in terms of the Credit Risk Management guidelines
of Bangladesh Banks distinguished under the following two broad categories.
Disbursement and Monitoring:
Check and obtain all securities and documents as per sanction terms.
Obtain periodic stock reports and insurances (renewal copy where applicable).
Timely prepare and submit all MIS and Bangladesh Bank returns.
Loan Cycle
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Business Division
(Recommendation)
Client
(loan application)
Credit
Division
(Approval)
Loan Administration
(checking, disbursement
& custodian of security)
Other activities:
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Definition: Treasury is a place where all funds are kept and disbursed i.e. matches the inflow
and outflow of sources and applications of available funds in a way that maximizes the return
and minimizes the risk level.
Objective of Treasury: There is some pre determined and specific objectives are
prevailing in every banking system. These objectives are:
Managing mandatory liquidity (i.e. 16% SLR including 4% as CRR) and foreign
exchange exposure of the bank.
Treasury Products: Treasury is the lifestyle to various products and services offered by bank to
its customers. Common products under treasurys function as follows:
Currency swap
Overnight deposit
Term deposit
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Coupon securities
Discounted securities
Functions of Treasury: Treasury plays a vital role in the survival and success of a bank.
The following is the common functions of treasuries:
Monitoring & management of various foreign exchange and money market positions.
Funding of the Balance sheet at optimum prices and propose interest rate matrix to the
management committee.
Propose various investment options to the management committee and analyze various
economic trends and propose Balance Sheet Strategy to the management committee.
Quotation of various foreign exchange rates to customers and Deal in foreign exchange
for position covering as well as for own account trading.
Various funding activities through currency swap and Close liaises with regulators.
Provide structured treasury solutions to customers and remain vigilant for any arbitrage
opportunities
Marketing activities for the future business growth and Proposal/renewals for various
internal limits
Estimate daily P& L and work with reporting unit in resolving any difference.
Record/maintain all foreign exchange and money market position and check for
differences with system generated/back office reports
Producing daily MIS report for Management of the Bank, Preparation and submission of
Bangladesh Bank returns.
Functions of Front Office: Front office usually performs their work in two different
markets. They are given below:
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Maintenance of statutory Reserve i.e. 16% of total in deposit in the form of SLR & CRR
Forward Quote.
Functions of Treasury Back Office: There are many functions Treasury Back Office
performed for the bank, but the key functions in BRAC Bank are given below:
4% CRR maintenance.
Credit Limits:
Monitoring of IRR (Interest Rate Risk) and liquidity gaps through EAR.
Regulatory Reporting
Correspondences Banking:
There is also a vital function operated by BRAC Bank Back Office and it is known as
Correspondences Banking. Some of its major features are given below:
Monitoring of Funds
Transfer of Funds
Collection of Funds
Accounting entries
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Quality of service
Customers knowledge
Though the team our clients have access to a wide range of financial services including:
Debt capital
Equity capital
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Financial markets
Objectives:
To provide wide range of financial services professionally, efficiently and competitive to
achieve pre-eminent position in chosen market.
Values:
Quality in everything we do
Business Concentration (Area Wise): In line with our corporate strategy initially
we will concentrate our business focus to the following locations:
DHAKA
Motijheel
Nawabpur and old parts of Dhaka City
Gulshan
Dhanmondi
Uttara
Karwan Bazar
CHITTAGONG
Agrabad
Khatungonj
Target Market:
Pharmaceuticals, Toiletries, Chemicals and Pesticides
Power Generation, oil exploration, Industrial and household gases (Liquid, Petroleum
Gases etc.)
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Ship Breaking, Re-rolling Corrugated Iron (CI) Sheet Mfg and related business.
Air Lines, Shipping Lines, Freight Forwarders, Testing Inspection agencies, Footwear
and Leather.
MNCs
NGOs
Educational Institutions.
Product/Service Objectives: The Corporate Banking Group would try to serve the financial
market of the country with the following objectives
Maintaining a diverse and quality asset base & pursue a sustainable growth strategy.
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Loan
o Short Term Loans
o Mid Term Loans
o Long Term Loans
Letter of Credit
Lease Financing
Guarantee
LTR
LBP
Overdraft
Security: For security against the various facilities we usually take cross-corporate guarantee
and personal guarantee of the Directors of the private companies. In case, if sufficient collateral
is not available, we create floating charge on present and future assets of the company with
Registrar of Joint Stock Companies, equitable/registered mortgage etc.
Corporate Banking Structure: The Corporate Banking Division has a centralized
structure through on line banking system. Any credit facility is processed at the Corporate
Banking Division, Head Office. After sanctioning of the facility, the limit is put on line and the
customer can enjoy the facility from any of the BRAC Bank branches.
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Volume of deposits
450
No. of loans
4374
Volume of loans
110
Current Account
Normal FDR
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Teachers Loan
InstaCash
Maximizer Saving Account: Maximizer is the special type of saving account which
offers an opportunity to receive the highest rate of interest plus other added benefits on ordinary
saving account. Here, interest is paid on a daily balance method and is given for each day far
whatever balance is maintained in the account on that day.
Other Benefits of A/C holders:
Customers are eligible to apply for the personal loan packages and can also open other
additional accounts such as fixed deposits with this bank.
They will receive adequate services in the time of processing loan applications.
Lockers: Among all the special services Locker service one of them which can be maintained
by an individual / by two or more persons jointly / partnership firms / limited company /
societies etc. for keeping their valuable and confidential documents to protect from fire and
thefts. A customer can hire a locker by opening an account on specific firm and untested
stamped agreement of specific value.
Life Style Loan: This loan is foe the purpose of customers to buy durable items such as
electronic device, furniture, music system, transport, machines and other household items.
Unsecured Personal Loan: This is a special kind of package designed for the salaried
employees and is disbursed without any security.
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are:
Head of Sales
Sales Manager
Market Research Executive (MRE) a new position has been created to capture the stronger
market share who will work closely with the Direct Sales Executive and report to them on day to
day work. MRE will be monitored by both DSE and Sales Team Leader BRAC Bank will open
up three Sales Booths in the major area of the city and Kiosk in the shopping malls which will
cater the needs of the customers where branches are not in close areas and this will be looked
after the Sales Department. These will serve in terms of opening and closing accounts and selling
products.
Banks Sale: Banks sale is different to other because bank does not sell goods. They sell
financial services. Bank is a business deals in money and credit with people, customers. Bank
collects deposit from their customer by selling their different type of liability product. At the
same time sell lending product with different names, criteria to serve the different group.
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Product Sale
Service Sale
Direct Sales: Direct Sales is defined as non-branch sales and business development where
products are sold directly to the customer (i.e. at there home or office).
Direct sales first identifies the benefits of establishing a direct sales unit. Direct Sales unit have
been successfully used in financial services to provide additional distribution capacity, leverage
branch network and build customer base quickly. These sales units have traditionally been asset
or liability focused through it is possible to have the sales people selling the mixture of asset,
liability, and investment products. The responsibilities of Direct Sales unit vary from operation to
operation but are generally tasked with the responsibility of meeting the customer at their office
or home. They advice the customer of the relevant features and benefit of our product range, help
them to select the right product and assist with the completion of the application forms and
collect the appropriate supporting documents. Once the sales have been completed the
relationship is generally transferred to another unit within the bank, to process the applications
and provide ongoing banking support for the day to day running of the account. The Direct Sales
representative should not be burdened with a heavy administrative workload that would inhibit
their selling time.
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Procurement
Logistics.
Field Level
CRO, ZO, TM QAO
SME
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ZO
TM
Field Level In the field level there are three types of designated BRAC Bank staff operates.
They are Customer Relation Officer (CRO), Zonal Officer (ZO) and Territory Officer (TM).
CRO: Customer relationship officers. There are about 600 CRO working all over the country in
262 unit offices. CRO are assigned to spot potential entrepreneurs through out the country and
motivate them to take loan from BRAC Bank. Each CRO falls under their assigned territory and
they have to perform their job within that. They are under direct supervision of the Zonal
Officers (ZO). CRO goes to people, identifies their need and according their need, suggest them
to avail loan from BRAC Bank. CRO are responsible for evaluating the trust worthiness of the
client whether they are capable to repay the loan or not. To provide loan and ensuring loan
repayment are the two main tasks done by the CRO.
ZO: There are 36 Zonal Officers .These ZO controls the CRO. They visit the spot that the CRO
already located. Each and every enterprise will be visited by ZO. ZO has the authority to
sanction loan highest up to taka 3 lakh.
TM: There are 4 team Managers. They supervise the ZO.
QAO: There are 12 Quality Assurance Officer. They perform the job of monitoring. They
supervise the ZO and TM.
Head Office Level:
Credit:
The Credit limit varies depending on the rank.
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Loan Admin - The posting is done in the system (MBS) in the Loan Admin. Then Loan
Admin sends requisition to Fin Admin.
Fin Admin: Fin Admin take care of the other expenses.
Recovery: Recovery Dept. prepares an overdue report and informs the TM. Recovery dept.
keeps track of the money. Legal notices are given to the defaulters.
MIS: MIS dept. keeps the total record of loan from its sanction to repayment.
SME Loan Product developed by BRAC Bank:
BRAC Bank extends loans to potential clients and provides quality banking services to targeted
business at any places of the country. Potential women entrepreneurs will also get the facilities of
SME loan; this initiation is to play a role in the socio-economic development of the country by
expansion of business as well as creation small and medium trading, manufacturing and service
enterprises. This loan is able to provide quick of employment.
(Source: www.bracbank.com )
Name of the Product - ANONNO - is a business loan provided to entrepreneurs.
Loan Ceiling - 3 lakh to 30 lakhs.
Purpose of Loan - Loan is provided for purchase of fixed assets, inventory and on
receivables
Fixed Asset Purchase
Working Capital
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considered
in
selection
of
guarantor:
The guarantor must be financially sound and ability to repay the loan in full.
The guarantor must be aware of the rules of ANONNO loan and his/ her responsibilities.
The guarantor must know the entrepreneur well. Preference will be given where both the
guarantor and the entrepreneur reside in the same area or come from the same community.
Age of Business:
Above 1 year.
Sectors: Trading, Manufacturing, Agriculture & service.
Tenor: 3 month to 36 month. Loan terms are of different term like 3, 4, 6, 7, 9, 12, 15, 18, 24,
30, and 36 months. In case of fixed assets purchase more than 18 months term is applicable.
Prohibited Enterprise/person: There are some sectors of services where opening account or
providing loan is restricted. They are Shrimp business, Tannery business man, Political figure,
police, army, lawyer, kazi and so on.
Project Evaluation Charge: The Borrower will have to pay project evaluation charge
on the amount of loan borrowed at the following rate:
Loan Amount
Up to
2 to 3 lakh
Up to
3 to 5 lakh
Up to
5 to 15 lakh
Up to 15 to 30 lakh
following
aspects
will
be
considered
before
sanction
of
any
loan:
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Collateral Free
Door Service
No A/C Maintenance
division.
Income statements
Liquidity Statement
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Corporate Tax
Personal Tax
BRAC Audit
Internal Audit
External Audit
Financial MIS
Business at a glance
Flash Result
Branch Position
Cost Control
Business Growth
Cost of Deposit
Competitor Analysis
Form IX
SBS 2
SBS3
Monthly Financials
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Annual Financials
Capital Adequacy
Accounts Reconciliation
Inter Branch Reconciliation
Guide branch offices to maintain their Books of Accounts Correctly & Timely.
2.5.16 Transaction Sales & Secured Remittance Service (TRS & SRS)
On December 2004, we had the opportunity to meet with TRS (Transaction Sales & Services)
and SRS (Secured Remittance Services) Division of BRAC Bank. Mr. Tareq Sami Rahman,
Business Development Officer of TRS and Mr. Sibly Sadek, Executive of SRS conducted the
training respectively. It was really cordial and interesting because both the training cocoordinators did their job very nicely. Now discuss briefly what we have learnt about TRS &
SRS.
Transaction Sales & Services (TRS): The major responsibility of BRAC Banks
TRS Division is to support their Corporate Customer with the combined network covers Dhaka,
Chittagong, Sylhet & Savar presently. TRS offer the no cost on line banking facility through 13
branches BRAC Bank. They offer cash deposit and withdrawals, cheque deposits, and money
transfer facility, account enquiries, give cheque book requisition and Account Statement with
their following type of account:
Current Account
Fixed Deposit
Convertible Account
FC Account
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Express Payment
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3.2 New Product Ideas: (1) Multi-access Card (Debit Card with
a VISA option) - BRAC Bank can launch an ATM or debit card with a VISA sign
which would work exactly like credit card debiting the money from the customers
account directly every time a customers purchase something. Customer will select credit
option instead of saving whenever customer swipes the card while purchasing. It would
work like a credit card and here credit limit would be the account balance of the
customers. On the other hand this will work as a debit card when inserted in the ATM
machine. This card is very useful where debit card cannot be used or customer out of cash
but where credit card is accepted. The best example of this sort would be St. George
Bank Visa Debit card and this had been very popular in Australia. This card will attract
those customers who are not interested about credit card and also those who had been
unable to obtain credit card. The bank can charge a fee may be once for the card
requested by the customers. (Recommended by A.K. M. Needar Hasan, CSO)
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3.4 Website: For the convenient of the customers BRAC Bank website should have
product application form available on the website. From website the customers can find
about the products of his or her choice and then download the application form to
proceed. This will also help the customers to know the requirements of opening an
account or applying for a loan and take the necessary documents along when walking in
to the branch and take the desired product. Next, the website should declare at least 15
days earlier about the new product that would launch. This declaration should be
highlighted as Coming up new product or as such. In addition, banks major events
should also be declared on the website say opening up of new branch and declaring
about setting up of ATM machines with an approximate dates and location.
(Recommended by A.K. M. Needar Hasan, CSO)
3.5 Display of all the Brochures: All the branches should have all the
brochures of all the products and they should be displayed. Not that only InstaCash
brochure all over the branches. A new walk in customers and existing customers likes to
know what products and services that bank is offering. (Recommended by the team)
3.6 Security Measures for Phone Banking: Customers are often given the
account balance information over the phone and this is usually done by the CSM. The
customers are only asked to answer about his or hers date of birth, address, and account
no. But it is very much possible for others to know someones name, address, and as
such. So, in order to strengthen the privacy of the customers and in order to protect the
account information bank can ask the customers to set a password or secret question for
phone banking. A customer will be asked his or her password or secret question in order
to avail the phone banking service or account information. (Recommended by A.K. M.
Needar Hasan, CSO)
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