Report On BRAC Bank

BRAC Bank Astha Obichol
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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:
BRAC itself holds almost 63% share of the total stake.
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.
Other small investors comprise only 0.01% of the shareholding.
1.4 Model Followed by BRAC Bank Ltd.:

Like ABN Ambro BRAC Bank has a centralized banking structure with online facility.
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1.5 Branches & Network of BRAC Bank Ltd.:
The expansion of BRAC Bank is growing very fast. Now, in total there are 13 operating branches
and more branches will open up in the coming year. To provide a strong network across the
country BRAC Bank has 260 unit offices for SME purpose. 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. 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. These will serve in terms of opening and closing accounts and selling
products. In addition, at the initial stage BRAC Bank will also set up three ATM machines in
three main areas of the city very shortly and more ATM machines to be set up by the mid of next
year.
1.6 The Vision of BRAC Bank:
The vision of BRAC Bank Ltd. is -Building a profitable and socially responsible financial
institution focused on Markets and Businesses with Growth Potential, thereby Assisting BRAC
and stakeholders build a just, enlightened, healthy, democratic and poverty free Bangladesh.
The BRAC Banks vision is thus aligned with those of BRAC.
1.7 The Brand Promise of BRAC Bank Ltd.:
The brand promise of BRAC Bank Ltd. is Astha Obichol. It is a Bengali word that denotes
trust on BRAC Bank remains the same no matter what in terms of quality service.
1.8 Division of BRAC Bank
BRAC Bank Limited consists of four major business divisions namely Corporate Banking
Division, Retail Banking Division, Small and Medium Enterprise (SME) and Treasury. There are
also other sections or divisions and they are Sales, TRS & SRS, Marketing and Product
Development, Channel Infrastructure Development, General Service Department, Loan
Administration, Trade Finance, IT and so on. SME is the largest department in the bank.
1.9 The Management of BRAC Bank Ltd.:
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Mohammad Ehsanul Haque
Managing Director
Imran Rahman
Deputy Managing Director
Kaiser Tamiz Amin
EVP & Chief Operations Officer
Shawkat Hossain
VP & Head of SME
Mohd. Rafat UllahKhan
SAVP & Head of Credit
1.10 Board of Directors
Mr. Fazle Hasan Abed
Chairman
Mr. Syed Humayun Kabir
Mr. Faruq A. Choudhury
Dr. Salehuddin Ahmed
Mr. Md. Aminul Alam
2. Findings:
Findings in this report represent the training experiences, BRAC Banks mode of operation, the
strengths and weaknesses if any.
2.1 Objective of the Study:
The main objective of the study is to share our views and experiences gained from orientation
training.
The general objectives of the study are as follows:
To learn and gain knowledge about different departments and their functions.
To learn how BRAC Bank operates and does business.
The other objectives are as follows:
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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.
Orientation to the working environment
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.
2.4.2 The Culture of BRAC Bank Ltd.:

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Every organization has a culture of its own that describes the working environment, way the
bank operates, and so on. The culture of BRAC Bank is friendly and open where learning
process, new ideas, team work are strongly believed and encouraged at the highest state. Its
about team work, its about achievement, its not only duties - Its more than a job.
2.4.3 The Three Best Departments:
From orientation training experiences three best departments has been identified. They are SME,
Internal Control & Compliance and Treasury. These departments have been identified best
because of the functions and nature of work or doing business. Like SMEs nature of doing
business and its operation is quite interesting and at the same time challenging. On the other
hand Internal Control & Compliance taught not only to prevent fraud and forgery but also to
safeguard our duties following the three Ps Policy, Process & People. Finally, the risky
dealings of the treasury, the way funds are maintained and managed made its departments quite
challenging and interesting.
2.4.4 The Four Best Trainers:

Identifying three best trainers was not very easy and four best trainers identified are as follows:
SME Mr. Md. Shabu Munshi (Principal Officer).
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).
2.5 Departmental Findings

In this section of the report departmental training and findings have been discussed. This
discussion includes departmental functions and the goals of both department and organizations.
2.5.1 Information Technology Department:
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Information Technology department plays a very vital role in this bank as all its operation are
100% automated since its inception. The findings and learning from this department has been
discussed as under.
Servers & Links: All the services of BRAC Bank Ltd. are running on IBM midrange
Servers. The servers are installed branch wise and there is one main server in the IT department
where all the braches has to log in through. Within Dhaka all the links are Radio link through
which branches connect. Outside Dhaka branches use fiber optic to connect.
Software: The banking software is called Millennium Banking System (MBS) provided by
South Tech Limited. To work in MBS staffs or employees are provided user name and ID branch
wise. The bank cheques are all marked with barcodes that makes each cheque unique and
disallows it to be duplicated preventing from forgery. The system helps signature and photograph
of the customer to be verified from any branch in Bangladesh. This software is used by all the
departments of the bank to perform day to day operations.
Security: To support fully online System with 100% Security BRAC Bank has its own
country wide Private Network System. To provide up most level of security the banks system is
using PIX Firewalls with 168 Bit Encryption.
Network: All networking Devices are from CISCO. In addition, BRAC Bank is powered by
windows2k, Linux, SUN Solaris.
Disaster Recovery Plan: Disaster Recovery Plan is very vital for any organization
specially one that is automated. As stated BRAC Bank IT department has Disaster Recovery Plan
and it has not yet been implemented but it keeps back up of all the servers.
Internet Banking & Internal Communication: To meet the interest of the
customers BRAC Bank Ltd. will soon start internet banking and this will help the customers to
check the balances of their account. The staffs or employees of the bank communicate through
Lotus Mail System internally.
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Website: The website of BRAC Bank is informative and it provides information about the
bank and its products. It also informs about the coming up new products and current hot news of
the bank.
ATM: BRAC Bank soon (end of Feb. 2005) will set up ATM machines for the convenience of
the customers. Initially, there will be three ATM machines in three prime locations namely
Dhanmondi, Gulshan and Banani. The ATM machines (hardware) are made up GRG China and
the ATM software was made up TPS Pakistan.
2.5.2 Marketing & Product Development Department:
Effective marketing strategies & campaign can help an organization to reach its goal. For a bank
both its product (designed to cater the needs of the customers) and services (exceptional
customer services) are equally important. BRAC Bank mainly does two types of marketing one
is product and other one is service. In a bank products are its loans, types of accounts that have
been designed in a manner to cater the needs of the customers. Services mean superior customer
service giving the customers a feeling of satisfaction that makes the customers loyal and have
trust on the bank. Today, BRAC Bank is at its position through effective campaign and
promoting its products and services.
Marketing Channels: BRAC Bank Ltd. believes promoting its bank and its products &
services at the highest possible level. It does almost everything starting from newspaper
advertisement to mass mailing to promotes its product and make it successful. Decorating the
branches and offices is also one of the effective channels and a way to reflect its brand image.
Products and its Development Stages: At present BRAC Bank has 10 products
and they have been promoted in a number of ways ending with quality customer service. Every
product that has been launched came through different stages of product development. The
stages have been described below in short:
Identifying the needs of the customers
Research the market to find out how big is the market for the new product
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Shaping the ideas with organizational goals and marketing strategies
Designing the product
Product launch with effective marketing campaigns to reach the

target market
Selling the products and getting response
Activities: The activities of marketing department are as follows:
New product ideas and product development.
Promotional activities.
Designing banners, signs and so on
Designing, developing and distributing communication materials.
Branch decoration from marketing point of view.
Participating in the social campaign.
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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c) Corporate Salary
d) A/C Opening
e) Sanchaypatray Issue ( only for clients)
Clearing: The cheque clearing process is managed by Bangladesh Bank and Sonali Bank
(where Sonali Bank acts on behalf of Bangladesh Bank), through clearing houses responsible for
the various districts.
The 66 clearing Houses in the country clear only cheques that are drawn on banks / bank
branches that are the menders to specific Clearing Houses (generally bank branches within
municipal area of the town/city).
The Dhaka Clearing House holds two sessions of clearing on each working day. The first session
(popularly known as FIRST HOUSE), held around 10a.m., is for handling over cheques drawn
on other banks and receiving cheques drawn on us. (clearing). The second session (popularly
known as RETURN HOUSE), held around 4 p.m., is for exchanging return cheques
(Settlement).
On the basis of the clearing process described above, cheques deposited by customer on a given
day (Day 0) would be presented at clearing house on the next working day (Day 1). The clearing
account of the branch is credited / charged for the net value of outward / inward cheques, value
the date of presentation at the clearing house. Similarly, the return house results in a net credit /
debit to the clearing account of the branch, value the date of clearing.
Same-day Clearing: is almost same to the normal clearing procedure except that it deals
with the cheques amount of Taka five Lac and above. And also within the bank branches around
the Motijheel area. Customer may use the fund on the same-day.
CPC receive the cheques from different branches by courier. CPC capture data in the Bangladesh
Bank Clearing package NIKASH and process cheques in the following manner:
a) Consider each deposit as a branch with the deposit slip total as the batch total
b) Input cheque level detail
Drawee Bank-Branch
Cheque Number
Cheque Date
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Cheque Type
Cheque Amount
Drawers A/C No.
Deposit A/C No.
c) Affix clearing stamps, endorsement stamps etc., as appropriate and have

endorsements signed.
d) Print drawee bank-branch wise schedules from NIKASH.
e) Attach cheques to appropriate printout.
The next day a person designated by CPC take all the cheques and a soft copy of the NIKASH
data and go to Bangladesh bank Clearing House. In the return procedure, process the return
cheques in the NIKASH System. The person designated by CPC takes the cheques and soft copy
of NIKASH RETURN data and go to the Bangladesh Bank Clearing House.
Inward Clearing: All incoming cheques will be processed and entries on the same-day
before the second clearing session (Return House) the BRAC Bank MBS system. Cheques drawn
on ourselves will be accepted by the clearing representative, at the first house. On arrival at the
branch, the CPC department honors or returns the cheques after checking. With the return
cheques, related schedules and a soft copy of the return data in NIKASH to the second house of
Bangladesh Bank.
Cheque Book Printing: CPC also take Printing of Cheques for the new accounts and
also for the new requisition of the old accounts. For the old accounts the Branch issue the cheque
book and then CPC take the printout of the cheques.
Account Opening: CPC Put the data of new account open in the MBS system and also
check the relevant document. Branch Open the account with the account no., then the entire
document sent to CPC.
Sanchaypatra Issue (only for our clients): CPC also issue Sanchaypatra for the BRAC banks
Customer.
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2.5.4 Remittance Department:
Remittance means flow of funds. It would be within a country or outside of the country. This is
one of the profitable departments of BRAC Bank.
Instrument used for Remittance:
a) Demand Draft (DD)
b) Pay Order
c) Telegraphic Transfer
d) Cheques
e) SWIFT
f) Telex
Type of Remittance:
1) Inward Remittance
2) Outward Remittance
SRS is one of the Products of remittance. SRS means Secured Remittance Services. The
procedure of the product is:
Foreign Exchange Company provides sufficient cover fund to their accounts with BRAC
Bank.
Sender comes to Exchange Company to remit money.
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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Remittance department issue Foreign Draft for Outward Remittance. Open Student file for
Bangladeshi Student reading abroad by taking some fees and VAT from customer processing
inward remittance for NGOs and other Organization.
2.5.5 Credit Department:
Lending money is one of the main functions of a commercial bank. In the lending process,
selection of borrower is the most crucial and vital job for a banker. Before a customer enjoys
credit facilities it is important that the applicant should qualify five Cs.
The five Cs are:
Character Intention to pay back the loan.
Capacity Borrowers competence in terms of utilizing the fund profitably and

generate income.
Capital financial strength to cover the risk.
Conditions general business condition between two parties.
Collateral implies additional securities.
Objectives of the credit department are as follows:
Managing credit exposure of the bank.
Managing credit risk.
Compliance of BRAC Bank Ltd.
Compliance of Central Bank Ltd.
Recovering or collecting dues of retail loans or advances
Present Structure of Credit Division:

Managing
ManagingDirector
Director
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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
Source of Borrower Study:

Loan application.
Financial statement
Study of account.
Market reputation.
Bangladesh Bank.
Different banks.
Personal interview.
Personal visit.
Net worth position.
Other source: Registration Office, Press report, Registered Joint Stock Company (RJSC)
and so on.
At present credit division performs following activities:

Credit Approval Process:
Corporate Credit
Retail Credit
Collection and Monitoring Activity:
Recovery
Risk management
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2.5.6 Loan Administration Department:
Loan Admin. serves as the banks last line of defense. This department does the following job:
To mitigate all loan portfolio risks before disbursing the loan.
To ensure effective control and monitoring of securities and documentation process.
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:
Obtain clients clean CIB report.
Check and obtain all securities and documents as per sanction terms.
Legal correspondences are done by banks panel lawyers.
Pass voucher entries in MBS for loan disbursement and recoveries.
Adequate loan loss provisioning.
Monitoring of due loans, limit, expiry and deficiency.
Custodian & Compliances:
Safe keeping of all securities and documents in locked archive
Obtain periodic stock reports and insurances (renewal copy where applicable).
Timely prepare and submit all MIS and Bangladesh Bank returns.
Assist auditors (external/internal) and ensure compliance audit queries in a timely

manner.
Loan Cycle
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Business Division
(Recommendation)
Client
(loan application)
Credit
Division
(Approval)
Loan Administration
(checking, disbursement
& custodian of security)
Other activities:
Create charges with RJSC and mortgage at sub registrars office.
Obtain certified copy of registered mortgage from sub registrars office.
Prepare and circulate division wise irregularity reports.
Initiate and implement cost time effective process re-engineering.
Provide orientation and training to fresher SME staffs.
Redesign and simplify Oshadaron loan process.
Issue pay orders and FDRs from Loan Admin.
Retail loan security review and monitoring.
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2.5.7 Treasury Department:
Treasury is responsible for organization, sales, structuring and trading activities across a wide
range Capital markets, Foreign market and Money market products. It aims to provide its clients
with sophisticated and innovative financial solution to theirs business requirement, delivering the
highest quality products and services. Treasury based operation improves the quality and stability
of earnings, thereby enhancing the competitive position of the bank and facilitating its long term
survival.
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.
Maximizing return from fund management with minimizing risk.
Minimizing the cost.
Matching between Asset & Liability (Interest & Maturity)
Providing services to satisfy the customers need.
Generating profit from intermediary functions.
Treasury Products: Treasury is the lifestyle to various products and services offered by bank to
its customers. Common products under treasurys function as follows:
Spot foreign exchange
Forward foreign exchange
Currency swap
Forward rate agreement
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:
Statutory management, Limits monitoring and management.
Adherence to various internal as well as regulatory policies.
Minimizations of risk and Optimization of risk return through specialization.
Monitoring & management of various foreign exchange and money market positions.
Monitoring & management of various cash flows and cash 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.
Preparation of various other statistical data and ratios.
Functions of Front Office: Front office usually performs their work in two different
markets. They are given below:
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Money Market: The money market is a network of financial institution, linked by a
telecommunication network, which exist for the purpose of facilitating the lending and
borrowing of short-term money. Short term implies that the tenor of money market transaction
do not stretch beyond a year. Money market transaction covers overnight deals to deals that
mature in twelve months time. Main functions of Money Market are given below:
Maintenance of statutory Reserve i.e. 16% of total in deposit in the form of SLR & CRR
Meeting Branch/Division fund requirement.
Call Loan taking & placing.
Term taking & placing.
Market Analysis & information gathering.
Foreign Exchange Market: It is the organization framework within which individuals

firms and banks buy and sell foreign currencies or exchange one currency for another. Functions
of Foreign Exchange Market are given below:
Circulation of exchange rate & interest rate on FX deposit.
Maintenance of daily exchange position within the limit.
NOSTRO funding/ Bangladesh Bank FC Account.
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:
Mid Office Monitoring:

Regulatory Limits:
50% holding of FC balance with Bangladesh Bank against Banks total FC assets
4% CRR maintenance.
12% SLR maintenance.
Overnight FC open position maintenance
Daily Nostro reconciliation.
Credit Limits:
Counter party Credit Limits- Forward & settlement.

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Monitoring of total stop loss limit through VAR( Value At Risk)
Monitoring of IRR (Interest Rate Risk) and liquidity gaps through EAR.
Nostro Fund Movement:

Back Office- Processing: There are some functions happened in Back Office in two different
markets, these functions are described below:
Money Market Deals:
Call Money deals with Banks/NBFI
Term deals with Banks/NBFI
Investment in Private Securities- Bonds, Shares and Debentures
Bangladesh Bank Re-Financing Fund.
Repo & Reverse Repo (Repurchase order)
Forex Market Deals:
Inter-Bank Forex deals.

In addition to Back Office also provide other MIS report, these are
Regulatory Reporting
Calculation of Transfer Pricing.
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
Preparation of Cheques and TT
Accounting entries
Customer query handle.
2.5.8 Corporate Banking Division
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BRAC Bank Limited a scheduled commercial Bank commenced its business operation in Dhaka,
Bangladesh on July 4 2001.The Bank is mainly owned by the largest NGO in BangladeshBRAC. The Bank has itself as a new generation Bank with a focus to meet diverse financial
needs of a growing and developing economy.
The Bank has embarked with an avowed policy to promote broad based participant in the
Bangladesh economy through the provision of high quality banking service based on latest
information technology. The Bank will ensure this by increasing access to economic
opportunities for all individuals and business in Bangladesh with a special focus on currently
underserved enterprises and households across the rural-urban spectum. We believe that
increasing the ability of underserved individuals and enterprises to build their asset base and
access market opportunities will increase the economic well being for all Bangladeshis.
BRAC Bank has a centralized banking structure through on line banking system that resembles
the ABN AMRO model. It consists of four major divisions namely Small and Medium
Enterprises (SME) division, Retail Banking, Corporate Banking and Treasury division.
We received an extensive orientation session on 4 th December 2004 delivered by Mr. Shariar
Head of Corporate Banking and shared a lot of discussion with him. Now we are going discus
about some main features of Head of Corporate Banking that are given below.
Why Corporate Banking: BRAC Banks corporate Banking team exists to provide both
banking services and a financial partnership with local and medium corporate, trading houses
and venture. As the financial partner of choice for the corporate sector, BRAC Bank is disguised
by our:
Quality of service
Value of innovative solutions
Level of trust with our clients
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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Ongoing relation support
Financial markets
Objectives:
To provide wide range of financial services professionally, efficiently and competitive to
achieve pre-eminent position in chosen market.
Diversify revenue stream through product innovation.
A well-diversified credit portfolio, which produces a reliable and consistent return to

investment.
Values:
Services to our customers
Quality in everything we do
Competitiveness and a will to win.
Growth and development of our people
Continuous productivity improvement.
Professionalism and ethics in all our actions.
Growing profit for our stakeholders.
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.)
Edible oil, Bulk Trading Essential Commodities, Industrial Raw Materials,

Agricultural Inputs, Cement.
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Garments, Textiles and related backward linkages industries including spinning,

Knitting, Yarn, Garment accessories etc.
Food Processing and Beverage Industries.
Cable and Cable wire, Information Technology.
Leasing Companies/Non Banking Financial Institutions.
Health service Industry, Non Governmental Organizations.
Importers/dealers of machinery, Industrial, Electrical equipment
Education Institutions, Bone china, Ceramics, Melamine, plastic products.
Manufacturing and Trading of Consumer Durables, Telecommunication, and

Contractor Finance.
Ship Breaking, Re-rolling Corrugated Iron (CI) Sheet Mfg and related business.
Air Lines, Shipping Lines, Freight Forwarders, Testing Inspection agencies, Footwear
and Leather.
Tobacco products and Tea.
Target Customers Group:

Leading Domestic Corporate and Trading Houses.
Local medium and large corporate.
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
To develop and sustain mutually beneficial customer relationships based on high

quality service and innovative products.
Maintaining a diverse and quality asset base & pursue a sustainable growth strategy.
To pursue a management style that contributes to the well-being and development of a

fully responsible and accountable workforce under a high corporate standard and
business ethics.
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To provide and deliver services in a cost effective manner.
Products/Services: BRAC Bank provides a comprehensive range of innovative corporate

financial solutions tailored to suit each companys needs. At the center of clients relationship
with BRAC Bank is an experienced and professional Management team with extensive industry
knowledge. The Relationship Management team works closely with the client to understand and
solve the financial requirements of the company. Our knowledge is about effects on the
industries and the business cycles and insight into market activity within this sector. Following
are some of the products that we offer our corporate clients:
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.
_____________________________________________________________________ 23

________________________________________________________________________
Strict adherence to internal control guidelines and other legal and statutory compliance are
followed. The credit approval process involves separate Credit Division, the Managing Director
and finally the Board.
Other departments such as Foreign Trade, Treasury, Credit Administration etc. plays the support
role for a comprehensive range of service to the corporate Banking Division.
2.5.9 Retail Banking Division

Retail Banking is known as general banking where the individual customers get services from
the local branches of the larger commercial banks. In BRAC Bank Retail section has been
divided into two parts Distribution and Sales. Distribution Serve the acquired customers
while Sales business acquisition. They both are interdependent and work closely with each
other. Retail offers different types of competitive banking products to the customers. The retail
division of the BRAC Bank also offers some special types of deposits and loan scheme for the
customer attention. The present structure of the bank is as follows:
No of deposits
42143
Volume of deposits
450
No. of loans
4374
Volume of loans
110
Retail Deposit Products:

Deposits
Current Account
Saving Account (Maximize and Normal Saving Account)
Deposit Premium Scheme (DPS)
Short Term Deposit (STD)
Normal FDR
Abiram (A hybrid of Fixed Deposit with pays internal on a monthly interval)
Retail Loan Products
Life Style Loan
Unsecured Personal Loan
_____________________________________________________________________ 24

________________________________________________________________________
Secured Over Draft
Teachers Loan
High Flyer Loan
Premium Term Deposit (PTD)
InstaCash
Shahaj Loan (For Bank Staff only)
Ashadharon (For Bank Staff only)
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.
Customers will receive discounts on remittance commissions.
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.
_____________________________________________________________________ 25

________________________________________________________________________
Secured Over Draft: This loan allows the customers to avail cash at minimal interest rates. The
given security is being kept untouched in the banks custody and there is an easy installment
option.
Teachers Loan: This product is one of its kinds and is specially designed to the teachers of
different educational institutions of Bangladesh (Schools, Colleges, and Universities). BRAC
Bank is the first bank that introduced this type of loan in Bangladesh. For this reasons this
product is very popular to the teachers.
High Flyer Loan: High Flyer Loan is a loan facility for the individual salaried staffs of
reputable airlines, airline General Sale Agents (GSA) and travel agencies. It is also an unsecured
personal loan and is different for its characteristics.
Premium Term Deposit (PTD): It is a monthly savings scheme for a period of years
with the initial investment of 20% on the total amount interested to invest. When the rate of the
interest is going down everyday you can earn the fixed higher rate against your small deposits.
InstaCash: It is a revolving overdraft facility to individuals who have credit cards with any
local bank with sound track record. It is a clean and unsecured overdraft facility. This is the hot
cake of BRAC Bank and has made a different market in the retail division.
Sahaj Loan and Ashadharon: These two loans are designed to the bank staffs with
minimum interest rate whose duration of service time is minimum 2 years.
2.5.10 Sales Department:
Sale Department is another division of Retail. Sales Department manly promotes the products
and boost up the sales of the bank in terms of bringing in deposits and selling different loan
_____________________________________________________________________ 26

________________________________________________________________________
products. The Sales Department is mainly run by different positions within the Sales Team. They
are:
Head of Sales
Sales Manager
Sales Team Leader
Direct Sales Executive
Market Research Executive
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.
_____________________________________________________________________ 27

________________________________________________________________________
Sales Division of BRAC Bank: BRAC Bank has two types of Sales. One is Branch
Sale and the other is Direct Sales. When people come to the branch and open an account it goes
in branch sale portion. Branch also sale their service after opening the account like cash
deposit/withdrawal, pay order issue, statement request etc. In that sense branch salesl has two
parts
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.
_____________________________________________________________________ 28

________________________________________________________________________
2.5.11 Channel Infrastructure Department (CID):
In BRAC Bank one of the important departments is CID. On 8/12/04 we introduced with Mr.
Tarique Aziz, SPO & Manager of CID. The main task of CID is site feasibility studies. The
location of BRAC Banks branch will have very important implication in future, as it can
directly affect profitability, convenience for employees and customers, as well as influence
the general performance of the branch. CID proceeds to find out which areas in the city can
be short-listed, and when that is done, the ideas are presented to Management Committee
that will conduct a detailed discussion & analysis. The core responsibilities of CID are as
follows.
Development Channel Infrastructure or point of Sales (POS).
Carrying-out extensive research before a new branch location/area is selected.
Opening of new branches, Kiosks, ATM machines etc.
2.5.12 General Service Department (GSD)

On 8/12/2004 Mr. Waleed Morshed FAVP & Head of IT & GSD oriented with GSD. This
Department actually provides dedicated service to al employees & of the BRAC Bank. Every
Department of bank depends on General Service Department for every kind of service. These
may include stationers, providing maintenance and transport facilities arranging securities etc.
Some of the major responsibilities performed by the GSD are the following:
Administer the cost.
Full-fill the requirement
Maintaining the quality of service
Ensure the security
Procurement
Logistics.
2.5.13 Human Resource Department (HRD):

This department is very essential & important department for every organization. This is the
place where the employees get the opportunity to get trained and all other human resource
related services are dealt. This department is not directly involved with Bank business but
working with those persons who directly & indirectly involved with Bank business. The major
responsibility of HRD is employees recruitment, posting, transfer, increment, Bonus, provident
_____________________________________________________________________ 29

________________________________________________________________________
fund, confirmation, training, hire & fire and so on. Welfare of all departmental employees is on
HRD. Therefore, HRD should be judicious, compassionate and rewarding to all employees.
2.5.14 Small & Medium Enterprise Department (SME)
The biggest operational division of BRAC bank is the SME division. SME is directly related to
business of the bank. BRAC Bank extends loans to potential small and medium trading,
manufacturing and service enterprises. This loan is able to provide quick and 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 of employment.
( Official website of BRAC Bank). BRAC Bank was titled to be the fastest growing bank in
2004, and it had a profit of 14 crore taka. The profitability of the bank came mostly from the
SME sector. The amount of loan given by SME is 530 crore. The borrower usually gets the loan
within 12-15 days.
SME division is enriched with more than 700 staffs and it has 262 unit office all over the
country.
Structure of SME division:
Field Level
CRO, ZO, TM QAO
SME
Head Office Level

Credit, Loan Adm., Fin. Admin., Recov. & MIS
The reporting line in SME:

CRO
_____________________________________________________________________ 30

________________________________________________________________________
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.
ZO has the authority to sanction up to highest 3 lakh.
TM has the authority to sanction up to highest 5 lakh
If the credit limit exceed taka 10 lakh it goes to Credit Committee
_____________________________________________________________________ 31

________________________________________________________________________
If the credit limit exceed taka 20 lakh it goes to the Board.
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
Repayment System of Loan

Loan can be repaid by two options.
By equal monthly installments (with interest).
By one single payment at maturity.
_____________________________________________________________________ 32

________________________________________________________________________
Guarantor Selection Criteria: 2 guarantors are required. The following aspects will
be
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
Project Evaluation Charge

5000
7500
10000
15000
Collateral: In case of Collateral 2 to 8 lakhs loans are provided - no mortgage. On the

other hand, in case of 8 to 15 lakh equity mortgages are required. Then for 15 to 30lakh
registry
mortgages
are
required.
Interest: Rate: Annual interest is determined on the basis of reducing balance method at the
competitive market rate. Flat rate of interest is 13.34%. Interest will be paid quarterly and
residue at maturity along with principal. The interest rate in SME is little higher, as there is no
requirement of collateral.
_____________________________________________________________________ 33

________________________________________________________________________
Bank Account
The entrepreneur will have to open a bank account in the same bank branch where there is the
account of SME loan, which is named ANONNO.
Application Procedure
The entrepreneurs require filling up a prescribed Loan Application Form. In this respect both
the entrepreneur and guarantor will have to submit one copy of photograph each and necessary
papers related to the business.
Security and Necessary Legal Papers against Loan
The entrepreneurs will have to furnish necessary and adequate security as per rule and
requirement of the Bank. The potential entrepreneurs will have to fulfill the following
conditions:
Enterprise Selection Criteria:
The
following
aspects
will
be
considered
before
sanction
of
any
loan:
The business must be in operation for at least one year.

The business must be legally valid, i.e. have valid trade license, income tax or
VAT registration (Wherever applicable).
The business must have all necessary in a structural facilities and adequate
work force.
The business must have a defined market with clear growth potentials.
Entrepreneur Selection Criteria: The following aspects will be considered for

evaluating the qualification of manpower and efficiency of the entrepreneur:
_____________________________________________________________________ 34

________________________________________________________________________
The Entrepreneur must be physically able and between 25-50 age group.
The entrepreneur must have necessary knowledge and experience on the
business, i.e. academic or vocational training, relevant work experience in
other institution or a few years of experience in the same line of business.
The entrepreneur must have clear-cut and specific source of income and
ability to save.
The entrepreneur must be socially acceptable.
Special features of SME:
Collateral Free
Door Service
No A/C Maintenance
No cost before approval
2.5.15 Financial Administration Division (FAD):

The accounting documentation activities of the bank are performed under this
division.
Activities of Fin Admin are as follows:

Manage the overall books of accounts for the bank
Balance sheet
Income statements
Cash flow statements
Statement of Changes in Equity
Liquidity Statement
Notes to Financial Statement
Preparation & Finalization of Final Accounts

Salary Payment to Employees
Payment to Suppliers
Tax Issues for the Bank
_____________________________________________________________________ 35

________________________________________________________________________
Corporate Tax
Personal Tax
Value Added Tax ( VAT) payment

Inspection & Audit
Bangladesh Bank Inspection
BRAC Audit
Internal Audit
External Audit
Financial MIS
Business at a glance
Flash Result
Branch Position
Division wise Performance
Cost Control
Business Growth
Cost of Deposit
Competitor Analysis
Budgeting & Financial Planning

Revenue & Capital Budgeting
Short Term & Long Term
Compliance of GAAP and other relevant Rules & Regulation

Ensure Audit Compliance Related Books of accounts
Periodic Bangladesh Bank return submission
Weekly Position
Form IX
SBS 2
SBS3
Monthly Financials
_____________________________________________________________________ 36

________________________________________________________________________
Annual Financials
Capital Adequacy
CRR & SLR Report
Accounts Reconciliation
Inter Branch Reconciliation
Inter Office Reconciliation
Nostro Account Reconciliation
Corresponding Bank 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
Short Deposit Account (STD)
Fixed Deposit
Savings Account (for corporate employees)
Convertible Account
FC Account
_____________________________________________________________________ 37

________________________________________________________________________
TRS division also has Priority Service System for their Corporate Customer which manages their
business finance and cash resources very conveniently. Priority Service Banking includes the
following special services:
Pick-up & Delivery Services
Auto fax Report
Corporate Help Line
Inward Remittance Information
Express Payment
FX & Money Market Info
_____________________________________________________________________ 38

________________________________________________________________________
3. Recommendations:
The recommendations here have been divided into few categories. They are as follows:
3.1 From Customers Point of View: Cheque is a sensitive and valuable

material. Customers like to have an acknowledgement of the cheques deposited in the
drop box like seal or receipt and hold a copy of such as an evidence of the cheque
deposited. (Recommended by Fahim Ahmed, Officer Treasury Back Office)
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)
(2) Gift Voucher a special type of savings account Bank can

introduce gift vouchers for the customer to purchase and use this as a gift. The final
_____________________________________________________________________ 39

________________________________________________________________________
recipient (the person who received this voucher as a gift) of the voucher can bring in to
any branch of BRAC Bank to open a special type of savings account, DPS or as such.
The voucher will not be encashable but its condition would be to open an account and
make him or her new customer or account holder. The minimum amount of the voucher
could be Tk.1000 and maximum can be anything more than Tk. 1000 depending on the
purchaser of the voucher. If the final recipient of the voucher already holds an account
with BRAC then he or she will be able to deposit the voucher into his or her account.
This idea of gift voucher will help the bank to bring in more customers / new account
holder and thus more deposit. In addition, bank can introduce (push sales) more products
and services to this new account holder or customer. (Recommended by A.K. M. Needar
Hasan, CSO)
Authority of the Sales Executive: It is a common phenomenon that DSEs are

introducing the customers account by signing the introduction section. This is mainly
happening due to target they have been given. In most of the case it is seen that DSEs are
introducing the customers whom they do no know properly just by signing the
introduction section of the account opening form to. This way KYC (know your
customers) policy is getting hampered. So, the DSEs should not have authority to
introduce the customers by signing the introduction section of the account opening form
and of course they will be credited for the account they bring in. (Recommended by
Fahim Ahmed, Officer Treasury Back Office)
3.3 Training Recommendations: The training schedule should have at least

one day training about the banks products and services making the trainees more
knowledgeable about the products & services available. This would help the trainees to
learn about the products and services in details and which in turn will help the trainees to
sell the products or services more efficiently. There should also be customer service
training for the fresher or those who are new in this customer service sector.
(Recommended by the team)
_____________________________________________________________________ 40

________________________________________________________________________
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)
_____________________________________________________________________ 41

________________________________________________________________________
4. Conclusion:
The orientation with different department was a great opportunity to learn about bank, its
vision, strategies, objectives and the activities of the departments. The trainers in this
orientation session were different departmental heads and their valuable time really
appreciates able. This training was also valuable as it gave us basic knowledge of banking
and in building & shaping the vision as of the bank. Operations of different departments are
interdependent and each plays vital role to meet the objective of the bank. This training also
taught about staying in compliance of the bank in everyday service with the bank.
_____________________________________________________________________ 42

Report On BRAC Bank

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BRAC Bank Astha Obichol

BRAC itself holds almost 63% share of the total stake.

Other small investors comprise only 0.01% of the shareholding.

1.4 Model Followed by BRAC Bank Ltd.:

BRAC Bank Astha Obichol

1.9 The Management of BRAC Bank Ltd.:

BRAC Bank Astha Obichol

To learn how BRAC Bank operates and does business.

The other objectives are as follows:

BRAC Bank Astha Obichol

Orientation to the working environment

2.4.2 The Culture of BRAC Bank Ltd.:

BRAC Bank Astha Obichol

2.4.4 The Four Best Trainers:

SME Mr. Md. Shabu Munshi (Principal Officer).

2.5 Departmental Findings

BRAC Bank Astha Obichol

BRAC Bank Astha Obichol

Identifying the needs of the customers

BRAC Bank Astha Obichol

Shaping the ideas with organizational goals and marketing strategies

Designing the product

Product launch with effective marketing campaigns to reach the

Selling the products and getting response

Activities: The activities of marketing department are as follows:

New product ideas and product development.

Designing banners, signs and so on

Designing, developing and distributing communication materials.

Branch decoration from marketing point of view.

Participating in the social campaign.

BRAC Bank Astha Obichol

BRAC Bank Astha Obichol

Drawers A/C No.

Deposit A/C No.

c) Affix clearing stamps, endorsement stamps etc., as appropriate and have

BRAC Bank Astha Obichol

Sender comes to Exchange Company to remit money.

BRAC Bank Astha Obichol

Character Intention to pay back the loan.

Capacity Borrowers competence in terms of utilizing the fund profitably and

Capital financial strength to cover the risk.

Conditions general business condition between two parties.

Collateral implies additional securities.

Objectives of the credit department are as follows:

Managing credit exposure of the bank.

Managing credit risk.

Compliance of BRAC Bank Ltd.

Compliance of Central Bank Ltd.

Recovering or collecting dues of retail loans or advances

Present Structure of Credit Division:

BRAC Bank Astha Obichol

Source of Borrower Study:

Net worth position.

At present credit division performs following activities:

Collection and Monitoring Activity:

BRAC Bank Astha Obichol

To mitigate all loan portfolio risks before disbursing the loan.

To ensure effective control and monitoring of securities and documentation process.

Obtain clients clean CIB report.

Legal correspondences are done by banks panel lawyers.

Pass voucher entries in MBS for loan disbursement and recoveries.

Adequate loan loss provisioning.