Case Study in Brac Bank Limited

1 January 2017

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses. Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate.

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The Banking Industry at its core provides access to credit. After Independence of Bangladesh the banking sector was restructured as a fall out of war of liberation. Banking grew primarily in the public sector with main emphasis development needs of the war-torn economy. A full-service commercial bank since its setting up in July 2001, BRAC Bank (www. bracbank. com) focuses on study unexpected market position in the Small and Medium Enterprise (SME) sector, which remains largely untouched in Bangladesh. BRAC Bank believes that this sector can contribute the most to a rapid generation of employment in the country.

Till December 2006, the bank had disbursed over Tk. 25 billion (USD 370 million) in loans to nearly 75,000 small and medium enterprises. With local and international shareholding by BRAC, BRAC Bank is listed in both the Dhaka and Chittagong Stock Exchanges. BRAC Bank operates under a ‘double bottom-line’ agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh. BRAC Bank has been awarded as the Sustainable Bank of the Year 2010 at the FT Sustainable Banking Awards 2010.

BRAC Bank received the prestigious Business Award styled DHL-Daily Star Bangladesh Business Awards 2008 as ‘Best Financial Institution of the Year’ for its innovation in products, services, financial performance/ productivity, company management and contribution to Bangladesh’s development. BRAC Bank Limited has recently received the prestigious award for being the highest VAT paying organization in national level in service industry. BRAC Bank Limited has awarded ICAB National Award from Institute of Chartered Accountants of Bangladesh (ICAB) for one of the Best Published Accounts & Reports 2007.

The core banking services of BRAC Bank are, SME banking, Retail banking, Wholesale banking, Probashi banking, E – banking. BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped into the true suburb entrepreneurial initiatives. Today, with over 10,000 cores of loans disbursed till date, BRAC Bank is country’s largest SME financier. With over 100 outlets, 300 ATMs and over 500,000 plastics in the market, BRAC Bank offers a wide range of financial solutions. BRAC Bank offers a full array of Financial Services to Corporations and Institutions.

Having access to the deepest end of the country, BRAC Bank is there to assist businesses in Bangladesh. There are 3,500 pay out locations of BRAC Bank in Bangladesh from which a customer can receive money sended form abroad. Every month, Probashi Banking executes around 150,000 transactions; which has made BRAC Bank one of the largest players among private commercial banks in channelizing inward remittance in the country. Being a Bangladeshi bank and serving the banking needs of Bangladeshi people, Human Resources Division of BRAC Bank Limited maintain an adaptive human resources management strategy.

Objective General objective The general objective of this report is to provide with an over view of the BRAC Bank’s banking policies so that the theoretical learning can be related with the real life business situation. Specific Objective This report aims to achieve the following specific objectives: ? Broadly describe BRAC Bank’s as an organization providing banking service in Bangladesh, its products and services. ? Identify BRAC Bank’s current scenario, reason behind its success & failure. ? Illustrate the Banking sector of Bangladesh with facts. To portray and analyze the trend, change and competition in the banking industry. ? To know the popular service of BRAC Bank. ? To know the upcoming service of BRAC Bank. ?

To know the present condition of SME banking condition. Methodology Type of business research used in this report is of descriptive nature. Through this descriptive research this report seeks to determine the answers to who, what, where and how questions of the banking industry of Bangladesh. Primary data analysis was selected as the basic research method. Data collection Data for this report has been extracted from secondary and primary sources, as the descriptive nature of the study to prepare this report calls in for existing facts and information compilation. • Source of secondary data Majority of the secondary data was obtained from the web site of BRAC Bank & BRAC NGO. Annual reports of the operators, their official web sites, reports done on the banking sectors and information obtained from the Internet. All those augmented this report to take a comprehensive shape. Result & Discussion

Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh- this is the corporate vision of BRAC Bank. To fulfill this vision they are trying hard from the opening their activities. Every day they are introducing new service in front to their consumer. • Some of their most popular services are in bellow : 1. SME Banking 2. E- banking service 3. Probashi Biniyog 4. Retail banking service 5. Wholesale service 6.

Online banking service 7. Mobile banking service • Others service of BRAC Bank are bellow: 1. ATM Card Service 2. Customer Service 3. Recent Activities Services 4. Stock Market Service For NRBS 5. Upcoming service SME Banking In BRAC Bank SME Banking is the most profitable and popular service. BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped into the true suburb entrepreneurial initiatives. Today, with over 10,000 cores of loans disbursed till date, BRAC Bank is country’s largest SME financier that has made more than 265,000 dreams come true!

In SME Banking, there are two parts-(1) Loan Products (2) Deposit Product. Loan products are ten types- Anonn Rin, Apurbo Rin, Aroggo Rin, Double Loan, Prothoma Rin, Trade Plus, Proshar Rin, Bizness Loan, and Supplier & Distributor & Business Equity Loan. Probashi Biniyog BRAC Bank Limited offers ‘Probashi Biniyog’ – a product that exclusively provides Non-Resident Bangladeshis (NRBs) the opportunity to invest in the Bangladeshi Capital Market through a Beneficiary Owner’s (BO) account, which will be funded by a Non Resident Investor’s Taka Account (NITA).

Both BO account and NITA will be hold with BRAC Bank Limited. NRBs can invest into the Bangladeshi Capital Market from anywhere in the world. BRAC Bank will provide custodian Service. Dividend and investment profits 100% repatriation of capital NRBs can apply for IPOs as well as buy and sell shares in the Secondary Market through BRAC Bank Limited. They can use e-mail, fax or phone to issue trade orders to BRAC Bank Limited. There are nine types in probashi baniyog services. a. Probashi current account: b. Probashi saving account: c.

Probashi shubidha account: d. Probashi fixed deposit: e. Shubidha fixed deposit f. Probashi abiram g. Probashi shubidha abira h. Probashi DPS i. Probashi shubidha DPS E-Banking Service With over 100 outlets, 300 ATMs and over 500,000 plastics in the market, BRAC Bank offers a wide range of financial solutions to meet everyday needs. Under the e-banking there are some services- a) Internet Banking b) Phone Banking c) SMS Banking d) Important Security Manage Retail Banking Services In BRAC Bank, their Retail Banking service is a profitable service for them.

There are five part of retail banking services- Deposit Products With over 128 outlets, 177 ATMs and over 500,000 plastics in the market, BRAC Bank offers you a wide range of financial solutions to meet your everyday need. Loan Products With over 100 outlets, 300 ATMs and over 500,000 plastics in the market, BRAC Bank offers you a wide range of financial solutions to meet your everyday need. Be it home loan, car loan, or simply a quick loan – simply drop an application and we shall do the rest while you enjoy life. Cards

With over 100 outlets, 300 ATMs and over 500,000 plastics in the market, BRAC Bank offers you a wide range of financial solutions to meet your everyday need. There are two card services in BRAC Bank. 1. Credit card • VISA Classic Visa Credit Card is valid only in Bangladesh. It can only used in local currency (BDT) within the country. This type of credit card has a limit ranging from BDT 10,000 to BDT 74,999. • VISA Gold This is a local Visa credit card, which is valid only in Bangladesh and transaction currency, is in BDT.

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