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General Management of
BASIC Bank Limited with Special
Emphasis on SWOT

Management and Organization
Group-1, EMBA, Spring- 2010


Formal Report
General management of
BASIC Bank Limited with Special Emphasis on SWOT

Prepared for:
Dr. Ahmad A N Neaz, DSSc
American International University - Bangladesh

Prepared by:

Md Ashraful Islam
ID: 10-93574-1

Md Habibur Rahman Khan ID: 10-

Sayeed Hossain
ID: 10-93677-1

Qumrul Hassan

Novera A zaman


Date of Submission: 16 February 2010 Group G.1. Dhaka 3 . Fall. EMBA.2010 American International University Banani.

as part of academic curriculum. It is a great pleasure for us to submit the report. The report is prepared on “General management of BASIC Bank Limited with special emphasis on SWOT”. We are the students of EMBA in your University. Md Ashraful Islam Md Habibur Rahman Khan ID: 10-93574-1 ID: 10-93678-1 G1 G1 Sayeed Hossain Qumrul Hassan ID: 10-93677-1 ID:10-93486-1 G1 G1 Novera A zaman ID:10-93574-1 G1 4 .16 Febrruary 2010 Dr. to you for your further evaluation. Sincerely yours. Ahmad A N Neaz. as the situation required. Each aspect of the problem is considered and studied as required. we will be readily available to explain the matter to you. DSSc American International University Dhaka Subject: Submission of Report. If any confusion arises or any further explanation is needed. We have tried our best to prepare the report and to make it a worthy one. Dear Sir.

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DSSc and the officials of BASIC Bank Limited for their spontaneous assistance. Our deepest appreciation to Professor Dr. Thanks all. Acknowledgements It has been a wonderful experience to prepare a paper on the " General management of BASIC Bank Limited with special emphasis on SWOT". 6 . Ahmad A N Neaz. Ahmad A N Neaz. To prepare the paper we were largely dependent on internet to get the required information. We also talked to the officials of BASIC Bank Limited for required information. We would like to express our gratitude to faculty teacher professor Dr. DSSc for his continuous support and guidance to prepare the report.

3 Management 6 2.3.3 Banking vs Technology 13 7 .1 Strategic planning 8 3.2.1 Organizational Mission 8 3.2 Organization Vision.4 Branch Network in Bangladesh 3 Types of Planning 8 3.3.1 Recruitment 7 Industry and Services 12 4.5 Achievement 3 Chapter-2 ORGANIZING & MANAGING HUMAN RESOURCES 2.1 Organizational Structure 4 2.3. Table of Contents Heading Page Chapter-1 AN OVERVIEW OF BASIC BANK LIMITED 1 1.5 The Planning/Control Cycle 10 Chapter-4 SWOT ANALYSIS OF BASIC BANK 4.1 Bank Assets 11 4.3 Operational planning 9 3.2 Default cultures 13 4.3 Human Resource 6 2. Mission and Goal 1 1.1.2 Other Banking policy 13 4.2 ORGANOGRAM of Basic Bank 5 2.3 The Bank Offers 2 1.2 Training 7 Chapter-3 THE ESSENTIALS OF PLANNING 3.2 Strong SME financing 12 4.4.2 Intermediate planning 8 3.1 Board of Directors 4 2.2.1 Threat to Industries 13 4.3 Organizational Objectives 9 3.4 Threats 13 4.2 Functional Divisions of Basic Bank 6 2.2 Weakness 12 4.1.0 SWOT analysis 11 4.1.1 Strength 11 4.4 Priorities 10 3.1 Background of BASIC Bank Limited 1 1.3 Opportunities 12 4.

0 Conclusion 14 5.1 Recommendation 15 BIBLIOGRAPHY 15 8 .Chapter-5 CONCLUSION 5.

started its operations from the 21st of January 1989. the Bank is not nationalized.2. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing Small Scale Industries (SSIs). At the outset. the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. CHAPTER-1 AN OVERVIEW OF BASIC BANK LIMITED 1. and contribute the economic development of the country.2.2 Vision.1 Vision of BASIC Bank To provide best banking service to all kinds of people. Thus the Bank is state-owned. It is governed by the Banking Companies Act 1991. Chittagong. However. The BCC Foundation being nonfunctional following the closure of the BCCI. Mission and goal of BASIC Bank Limited 1.1 General information. 1. Sylhet.2 Mission Providing high quality product and service through by latest technology 9 . BASIC Bank registered under the Companies Act 1913 on the 2 nd of August 1988. Khulna and other areas in 2010. the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. BASIC (Bangladesh Small Industries and Commerce Bank Limited) Bank Limited is one of the leading private commercial bank having a wide network of 33 branches across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka. 1. it operates like a private bank as before.

3 The Bank Offers The Bank offers the different types of product and services. the regulatory authorities. • Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfully. that are described below: • Term loans to industries especially to small-scale enterprises • Full-fledged commercial banking service including collection of deposit. • To undertake project promotion on identify profitable areas of investment. short term trade finance. • To establish linkage with other institutions which are engaged in financing micro enterprises. 1. 1. Because for doing business it plays an impartment role to cope up with the organizational structure. • To cooperate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sector. the shareholders (GOB). • Micro credit to the urban poor through linkage with Non. working capital finance in processing and manufacturing units and financing and facilitating international trade. banks and other financial institutions. 10 .Government Organization (NGOs) with a view to facilitating their access to the formal financial market for the mobilization of resources. So the goal the BASIC Bank are - • To employ funds for profitable purposes in various fields with special emphasis on small-scale industries.2. • To search for newer avenues for investment and develop new products to suit such needs. To set up mission is very important task for the organization. In order to perform the above tasks.3 Goal of BASIC Bank Every organization has to set up their organization goal to do business that will mach up with their strategy. BASIC Bank works closely with its clients.

The growth rate was 20.31 percent.98 million in 2007 to Taka 38.53 million at the end 2008 from Taka 38.368.48 percent increase compared to 23.947.25 percent in 2008 from 3.09 percent.91 million in the previous year. 11 . The total assets of the Bank increased to Taka 46. Location of these branches are given below: 1 DHAKA [Twelve Branches in the capital city] 9 SAIDPUR 2 CHITTAGONG.[Seven Branches in the commercial 10 BOGRA city] 3 NARAYANGANJ 11 KHULNA 4 NORSHINNGDI 12 JESSORE 5 RAJSHAHI 13 SYLHET 6 RONGPUR 14 BARISAL 7 GAZIPUR 15 CHAWMUHONI 8 COMILLA 16 SIRAJGONJ 1. Deposit rose from Taka 31.23 million in 2008 showing a growth rate of 20. Year 2008 was a period of high growth in loans and advances with 22.91 percent of total loans and advances Emphasis on the maintenance of quality of assets remained the centerpiece of the Bank's business strategy. All out efforts were made to improve the recovery rate and control non-performing loans and advances.86 percent increase in 2007. Growth of industrial finance was moderate and loans to small and medium industries was 23. there are twenty-nine conveniently located branches in all over Bangladesh.1.5 Achievement The performance of BASIC Bank Limited has been satisfactory since its inception in respect of all the measurement parameters.4 Country wide Branch Network At present.70 percent in 2007. Although the recovery rate of project loans remained stable in the neighborhood of 96 percent the proportion of non-performing loans to total loans increased to 3.773.651.

2 ORGANOGRAM OF BASIC BANK 12 . Sheikh Abdul Hye Mr. Razia Begum Bacchu Chairman. The present Board of Directors is as under: NAME OF BOARD OF DIRECTORS: Mr. Ministry of & Chairman. Dr.1 Board of Directors The Government of Bangladesh appoints all the Directors of the Board. and the managerial body looks after the day-to-day operation of the Bank. Kazi Akhtar Mr. Ashraf Mohammad Hossain Director Director. BASIC Bank Ltd & Former Commissioner of Finance Division. Anwarul Prof. BASIC Bank Ltd Ltd & Former Member Founder President Chandpur & Additional Secretary of Parliament . 2. BASIC Bank Ltd Iqbal BASIC Bank Ltd & Joint Secretary Director. Sajedur Islam. BASIC Bank Director. Jahangir Akhand Salim Ms. Md. Islami University. Dhaka Ltd Kushtia 2. Shakhawat Mr. AKM. Bangladesh Customs Finance Small and Cottage Industries Corporation Mr.1. Chamber of Commerce and Ministry of Education Industries Mr. FCMA Hussain Rahman Director.1 Organizational Structure The Bank is organized with a Board of Directors and a managerial body.1. BASIC Bank Ltd Managing Director. The Board of Directors which is the highest policy making body lay down the major policy guidelines. CHAPTER-2 ORGANIZING & MANAGING HUMAN RESOURCES 2. Ltd & Managing & Chairman Department of BASIC Bank Ltd Director Accounting and Information Head Office ARS Lube Bangladesh Systems. BASIC Bank Director. Bijoy Bhattacharjee Mr. BASIC Bank Ltd & Director.

Manager Manager Deputy Deputy Manager Manager Assistant Manager Officer Officer Assistant Assistant Officer Officer Figure: Organogram of BASIC Bank 2.1.3 Management 13 . . CHAIRMAN CHAIRMAN BOARD OF DIRECTORS MANAGING DIRECTOR MANAGING DIRECTOR GM GM GM GM (Audit (Audit & & Inspection) Inspection) (Operation) (Operation) GM GM (Administration) (Administration) ((Admin Admin)) Establishment and Central Personal International Industrial Development Division Division Credit and Branch Control Accounts Micro Credit Division Deputy DeputyGeneral GeneralManager Manager Assistant AssistantGeneral GeneralManager.

Most employees are comparatively young in age yet mature in experience. quick decision making is ensured. 2.2 Functional Divisions of Basic Bank The bank has 33 branches throughout the country. • Law division. • Control development & coordination division. The Managing Director heads the management. Thus. • Secretary’s Division (Aboard Division). • International division. • Establishment & Common Service Division. • General Credit Recovery Division. At the head office level there are 12 divisions most of which have more than one functional department which are headed by a DGM. Keeping the view in mind the Bank maintains the quality of its human resources by strict recruitment and intensive training. research and statistics division.3 Human Resource Human resource is the main driving force and quality human resources are the key to the success of today’s banking business. The Branch Managers of the Bank report direct to the Managing Director and the Heads of Departments. • Computer system and procedures division. 14 . • Audits an inspection division • Planning. As at end 2008 the total employee strength was 735. • Human Resources Development Division. 2. The names of the divisions are: • Personnel Division (PD). • Industrial development finance division. He is assisted by the General Managers and Departmental Heads.

3. CHAPTER-3 THE ESSENTIALS OF PLANNING 15 . In the same year.2.2 Training Intensive training program. is being imparted to employees of both managerial and non-managerial levels. The Bank. 2.1 Recruitment The bank follows a strict recruitment policy in order to ensure that only the best people are recruited.3. so far. In 2008 the institute arranged 27 training courses and provided training to as many as 517 employees of the bank. The Bank has established its own training institute in 2005 with modern facilities. Out of them 11 employees participated in training courses held abroad. on a regular basis. a total of 602 employees were provided with training in various fields. has recruited four batches of entry-level management staff. all of whom have got excellent academic background.

• Good recovery rate • Increasing the gross profit of the branch. 3. Basic Bank Limited has some strategic planning.2. how to pursue long-term goals with available resources. They are like: • Becoming number one branch. 3. 3. • Profit maximization. • Steady and sustainable growth.1 Organizational Mission To provide best development and commercial banking services to the common people of Bangladesh. The rationale for beginning at the top is the need for coordination.2 Types of Planning Ideally.3. 16 . they can play an important role in the economic development of the country. • Establishing small industries. planning begins at the top of the organizational pyramid and filters down. And to provide special support to the small-scale business enterprises so that.1 Strategic planning Determining. how to subunits contribution with allocated resources.2 Intermediate planning Determining. • Adoption of new building technology. The branch manager planning to improve his/her branch is the intermediate planning. They are as follow: • Financial establishment of small units industries and businesses and facilitate their growth.2. • Investment in a cautious way.

In a branch of Basic Bank Limited. • To corporate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sector. • Deep commitment to the society and growth of national economy. • BASIC keeping pace with the changing environment.3 Organizational Objectives • BASIC Bank Limited dedicated their service to the nation through active financial participation in all segments of economy. 3. how to accomplish specific tasks with available resources. 3. • Global Banking has change rapidly and BSIC as worked hard to adapt to these changes. • To pay a vital role in human development and employment generation. • To undertake project promotion to identify profitable areas of investment. • To search for newer avenues for investment and develop new products to suit such needs. commerce and service sector etc.4 Priorities 17 .2. So this department manager planning is operational planning. Every department has a departmental head. • To establish linkage with other institution which are engaged in financing micro enterprise. (1) General Banking (2) Foreign Exchange (3) Credit Division.3 Operational planning Determining. • The Banks main manifest to progress as an institution par excellence to customer satisfaction. there are three division. small industries. trade. 3.

3. • Basic Bank Limited follow the upward communication to there employee for better planning and controlling.5 The Planning/Control Cycle Figure: The Planning/Control Cycle • Basic Bank Limited planning sets in motion activities to accomplish the planned objectives. or activities in order of importance. top management prepares to make later decision regarding the allocation of resources. • Quick monitoring and feedback to top management. CHAPTER-4 18 . priorities plat a special role in planning. • Basic Bank Limited has a monitoring system to magnifying there planning. By listening long-range organizational objectives in order of their priority.Defined as a ranking of goals. objectives.

During the year 2008.333% to taka 46.91 million of 2007. SWOT Analysis Internal Analysis External Analysis Strength Weakness Opportunity Threats Figure: The SWOT Analysis Chart 4. total assets of the bank increased by 20. It can be categorized into internal and external analyses.1 SWOT Analysis The analysis of strengths.1 Bank Assets The main strength of the Bank as identified by us is its assets.651. where internal analysis contains strength and weakness. we have made an endeavor to analyze the SWOT of BASIC Bank in a very limited scope. weaknesses.773. SWOT ANALYSIS OF BASIC BANK 4. and external analysis contains opportunity and threat.53 9 million from taka 38. commonly referred as a SWOT analysis is very important to evaluate the performance of any company. opportunities and threats.2 Strength 4.2. Here. 19 .

BASIC has used the strategy of offering a 50 percent interest remission as an inducement for settlement – after a decision is rendered but before execution. industrial imports and expansion of industrial credit. The services sector is also expanding in line with rapid growth in industry.3. As one of their goals is to employ funds with a special emphasis on small-scale industries.2. 2007 and 2008 was 86%. The output of small-scale manufacturing also registered strong performance with 11. the increase covered food items. robust performance. Thus.3. 20 .2 Insufficient Number of Branches Though the Bank has got 33 branches. leather. 4.1 Lack of Modern Banking Facilities Lack of modern banking facilities is identified as the biggest weakness of the Bank. 4.4% growth. But emerging infrastructure constraints. still it is felt that it is insufficient.3 Weakness 4. 4. particularly power shortages. In loan recovery proceedings. held back the growth potential in manufacturing.4 Opportunities 4. ATM service etc. they should have more number of branches allover the country.2 High Recovery Rate The recovery percentage of loan of the Bank in the year 2006. Manufacturing expansion is supported by a turnaround in manufacturing exports. the Bank has a better recovery compared to that of other institutions engaged in large loan and commercial financing. The clients of the Bank are deprived of modern banking facilities like online banking.4.1 Industry and Services The industry sector. textiles. lifted by export-oriented manufacturing. 4. internet banking. 87% and 88% respectively.

1%. 21 . paper products. 4. The absence of modern banking facilities which are mainly technology based are already identified as a weakness of the bank. The global recession has curved the growth of our export-oriented industries. The political instability and present power crisis have badly infected our industrial sector.2 Opportunity of the Banking The following opportunity may be availed by the BASIC bank: Mortgage Services Consumer Lending Services Credit Card Services Auto Finance Banking Services Insurance 4.5.2 Default Culture Default culture is very much familiar in our country. metal products and nonmetallic mineral products. 4. chemicals. 5. Technology Banking and Financial Business can not survive without the support of technology.3 Banking vs.5.5 Threats 4. So the management should be aware of this event and should take some preventive measure to overcome this problem. apparel.1 Threat to Industries Threat to industries is also considered as a threat to BASIC Bank as small industries are the main focus of the Bank. it is very harmful. For a bank. Production of non-manufacturing items also increased with gas production increasing by about 9.4. Banking efficiency only comes from progress of technology. The SME scheme of other banks also a potential threat to the BASIC bank. This may divert the clients of the Bank to other banks.5.3% and electricity by 5. wood products.

income and return on capital. 22 . The Bank expects to make further gains in revenue. Sustainability in better performance is the prime focus in BASIC Bank. The Basic Bank launched the Micro Credit program in 1994. Although Government of Bangladesh is the sole shareholder of this Bank. The Bank’s specialization is development of trade. BASIC is a trend setter in the banking industry. The ever increasing competitive nature of banking business determines the direction of the bank. Through this institution has established it self as a performing body in the market bur still BASIC Bank is expected to develop and maintain strong competitive edge in this specialized sector in the years ahead. In this environment. BASIC considers the Borrower as clients. Continual improvement in different segments with a proactive attitude can make a difference. The Bank also plans to maintain its focus on managing capital and costs to maximize shareholders' value. export credit limit. BASIC is redefining the traditional banking concepts and transforming it into relationship banking. its objectives and modus operandi – it is a blend of commercial and development ideology. Online Banking is mandatory to cope with today’s dynamic economy and BASIC is heading towards the implementation of Online Banking within two years from now. It was established as the policy makers of the country identified the requirement of a financial Institution in the private sector for financing Small Sector Industries (SSI). business and other commercial activities. The mutual relationship is the essence of long term success in the banking industry.0 Conclusion BASIC is unique in terms of constitution. It covers the full range of services to the exporters and importers extending all sort of facilities like cash credit. CHAPTER-5 Conclusion 5. local and foreign and bill purchase option. its mandate. short term loan. but the way of thinking ahead is quite inspiring and goal oriented.

1 More number of branches should be opened at district level. BIBLIOGRAPHY Reference Books: 1. 2. 5.1 Recommendations For the improvement of bank service following measures may be taken by BASIC Bank authority : 5. which will increase total substantial growth.2 To attract more clients BASIC should create new marketing strategy. Aortho Rin Ain –2005 Reports: 1.1..1.basicbanklimited.1.com 23 . Annual Reports of The BASIC Bank Ltd The bank should facilitate on-line computerized banking service to all its customers and should finalized the process of implementing centralized on-line banking system.4 The bank should facilitate ATM and internet banking facilities for the client. 5. Banking Company Act. Manual and Prospectus of The BASIC Bank Ltd • Website: www.1991. 3. 5. Negotiable Instrument Act.