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INTERNSHIP REPORT For BBA Certificate Program

ON
OVERALL FINANCIAL PERFORMANCE OF BRAC BANK LIMITED

PREPARED FOR
DR. SHYAMAPADA BISWAS ASSOCIATE PROFESSOR SCHOOL OF BUSINESS

PREPARED BY
MD. LIKHON ID: 08.01.02.005 21ST BATCH BBA SCHOOL OF BUSINESS

DATE OF SUBMISSION
05 AUGUST, 2012

AHSANULLAH UNIVERSITY OF SCIENCE & TECHNOLOGY

Letter of Transmittal
5th August, 2012 Dr. Shyamapada Biswas Associate Professor, School of Business Ahsanullah University of Science & Technology

Subject: Submission of Internship Report Dear Sir, This is my pleasure to present my internship report entitled Internship Report On Overall Financial Performance of BRAC Bank Limited. I have conducted my internship program in BRAC Bank Limited, Rampura Branch, 369 Khan Tower, Rampura, Dhaka 1219, under your close supervision.

I believe that knowledge and experience I gathered during the internship period will be helpful in my future professional life. I will be grateful to you if you accept the report. I will be available for defense on this report any time.

Your support in this regard will be highly appreciated. Thanking you. Sincerely yours

____________

Md. Likhon ID 080102005 B.B.A. 21st Batch School of Business, AUST

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Letter of Gratitude
5th August, 2012

Dr. Shyamapada Biswas Associate Professor, School of Business Ahsanullah University of Science & Technology Love Road, Tejgaon, Dhaka.

Subject: To thank for supervising the Internship report and its Submission.

Sir, Thank you for helping me as Term Paper supervisor. Your advice makes my Report effective and more representatives to study the case.

I am really grateful to you for your kind supervision in preparing this report. Thanks again for your nice concept and effective guidelines.

Yours truly,

____________ Md. Likhon ID 080102005

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Acknowledgement
Completion of this report has made me grateful to a number of persons. First of all I would like to acknowledge my supervisor and teacher Dr. Shyamapada Biswas not only for giving the opportunity to prepare the report but also for providing me the opportunity to improve the report by extending the submission deadline on this semester. She was also available when I needed him for help, suggestions and guidelines. I am also grateful to Ms. Tahniyat Ahmed Karim, Head of Human Resources, BRAC Bank Ltd. for giving me the valuable opportunity to do my internship program and supporting me with knowledge and resources. I am also grateful to the entire Team Rampura branch of BRAC Bank Ltd. as they have always been there for me when I needed them the most. Their active participation to all my questions, queries during my internship has made this journey a true success. I would like to name here A.K.M Needar Hasan (Branch Manager), Aloka Aich (Customer Service Manager), Md. Faisal Mehbub (Associate

Relationship Manager), Asmary Sultana (Branch Sales & Service Officer), Md. Abdullah Al Mamun (Branch Sales & Service Officer), Moksedul Islam (Branch Sales & Service Officer), Tarek Vai, Ishrat Apa & Riajul Vai(BSSO), thanks to all of them for providing valuable suggestions and information in preparing this report. It was my privilege and I am truly honored working with such a wonderful team.

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Preface
First of all I would like to be grateful to the Almighty Allah, the merciful & the benevolent that has enabled me to complete this report.

The internship, a part of the academic discipline, for the BBA students has been designed to acquire practical knowledge. It is expected that the integration of knowledge in theories and practices will enable us to become effective. Through this program, I have got the chance to acquire some experience in a reputed bank, which is expected to enlighten my career.

Its really a great opportunity to have the chance to make a report on various aspects of the bank. I have chosen Overall Financial Performance of BRAC Bank Limited as subject matter for my internship program due to personal curiosity & interest to achieve some practical knowledge about this sector. Besides this banking activity is much important for the economic development, without bank, its difficult to run financial activities or operation. So its normally claims a research on it for better understanding at present.

Finally, it is my earnest & sincere hope that this report on Overall Financial Performance of BRAC Bank Limited would be found useful by the individuals. I tried to make the report effective, informative and representative.

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Executive Summary
I have prepared my internship report based on the three month long internship program that I had successfully completed in BRAC Bank Limited under customer service of Rampura Branch from 15.04.2012 to 15.07.2012 as a requirement of my BBA program on School of Business, Ahsanullah University of Science & Technology. The topic mostly is about the overall financial performance of BRAC Bank Ltd. Besides I describe about various products & services and remittance related much information present in this report. Overall remittance operation and procedure show in this report. I also included general banking operation of BRAC Bank Limited. I have worked in Customer Service of BRAC Bank Limited and I observed that how the employees satisfy customers needs and besides I collected data for report. The first part of the report different aspect of the report like methodology, origin, objective etc of the report. Chapter 2 is the organization part, in this section, the detailed background of BRAC Bank Ltd has been provided. This section looks into the different aspects of the bank starting from the mission, vision to the business and functional units of BRAC Bank Ltd. The next chapter is the job part. In this section, I have put forward my job description as an Intern in Rampura Branch and The different tasks that has been assigned to me, how the task were done etc. The next part is the most important part of the report, this is the main section. Here, according to the title of the report, the overall financial performance of BRAC Bank Ltd has been provided. Ratio analysis of BRAC Banks financial statement for the year 2004 to 2011 has been provided. Along with it a SWOT Analysis has been done to look into the competitive edge of the bank

Finally, in the last chapter findings, recommendation and conclusion has been done.

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ACRONYMS
PO DD MT FD STD SOD CC ARM BSSO CSM BBL CASA CSR IFC KYC NCS CCSO RM ROA ROE ROI SRM SWOT TD = Payment Order = Demand Draft = Mail Transfer =Fixed Deposit = Short Term Deposit = Security Overdraft = Cash Credit = Associate Relationship Manager = Branch Sales and Service Officer = Customer Service Officer = BRAC Bank Limited = Current Account & Saving Account =Corporate Social Responsibility =International Finance Corporation =Know Your Customer =Nation Wide Collection System = Cash and Client Service Officer = Relationship Manager = Return On Assets = Return On Equity =Return On Investment = Senior Relationship Manager = Strengths, Weaknesses, Opportunities and Threats. = Term Deposit

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TABLE OF CONTENTS
LETTER OF TRANSMITTALI ACKNOWLEDGEMENT..II PREFACE..IV EXECUTIVE SUMMARY..V ACRONYMS.VI

CHAPTER: 1 INTRODUCTION...............................................................................................3
1.1 1.2 1.3 1.4 1.5 BACKGROUND OF THE REPORT .............................................................................................. 5 OBJECTIVE OF THE REPORT..................................................................................................... 5 IMPORTANCE OF THE REPORT................................................................................................ 6 METHODOLOGY OF THE STUDY.............................................................................................. 6 LIMITATIONS OF THE REPORT................................................................................................. 7

CHAPTER: 2 A BRIEF OVERVIEW OF BBL........................................................................8


2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 HISTORICAL BACKGROUND...................................................................................................10 VISION, MISSION, GOAL, AND CORE VALUES .......................................................................12 CORPORATE INFORMATION AT A GLANCE ...........................................................................14 ORGANOGRAM OF BRAC BANK LIMITED..............................................................................15 INFORMATION TECHNOLOGY ...............................................................................................17 PRODUCTS & SERVICES OF BRAC BANK LIMITED..................................................................17 CASH FLOW STATEMENT ......................................................................................................28 PROFIT AND LOSS ACCOUNT.................................................................................................29 BALANCE SHEET ....................................................................................................................30 GRAPHICAL SITUATION OF BBL.............................................................................................31

CHAPTER: 3 MY INTERNSHIP EXPERIENCE ..................................................................35


3.1 3.2 Experience Regarding Personal Improvement .....................................................................37 BRANCH RELATED EXPERIENCE.............................................................................................39 1|P a g e

Overall Financial Performance of BRAC Bank Limited

3.3

PRACTICAL WORKING EXPERIENCE.......................................................................................42

CHAPTER: 4 OVERALL FINANCIAL PERFORMANCE ANALYSIS.............................58


4.2 4.3 4.4 4.5 4.6 Graphical Analysis of Financial Elements..............................................................................61 Correlation and Regression of Financial Elements ...............................................................65 RATIO ANALYSIS ....................................................................................................................74 SWOT ANALYSIS ....................................................................................................................78 SHARE HOLDING STRUCTURE ...............................................................................................80

CHAPTER: 5 FINDINGS, RECOMMENDATION AND CONCLUSION ..........................81


5.1 5.2 5.3 FINDINGS...............................................................................................................................83 RECOMMENDATION .............................................................................................................84 CONCLUSION.........................................................................................................................85

BIBLIOGRAPHY ..............................................................................................86

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CHAPTER I

INTRODUCTION

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CHAPTER 1
Chapter: Introduction
1.1 Background of the report 1.2 Objective of the report 1.3 Importance of the report 1.4 Methodology of the study 1.5 Limitations of the report

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1.1 BACKGROUND OF THE REPORT


Without any application, knowledge is valueless. Now a days everything is so practical. In a professional life theoretical knowledge is base and practical knowledge is a key to success. Highly theoretical knowledge is meaningless if we dont use it in our practical life.

Bachelor of Business Administration (BBA) is a professional program. It is designed with an excellent combination of practical and theoretical aspects. This internship program is very important for a BBA student. This program Helps BBA students get an initial experience about the practical field. As a student of BBA, with the partial fulfillment of the course requirement, I was assigned to pursue internship in BBL, Rampura Branch, Dhaka.

I have used my knowledge properly on banking system. After observing thoroughly, I have prepared this report on the basis of my findings and observation relating to the topic.

1.2 OBJECTIVE OF THE REPORT


The main purpose for making this report is to know and evaluate the Overall Banking System and Performance of BRAC Bank Limited. The specific objective may be show as under: To know the historical background of BBL To know the management of the BBL To know the functions of the BBL To know the foreign remittance of the Bank To observe the general activities of the bank To find out problems of the Bank To suggest necessary measures To acquire knowledge about the Overall Banking System To focus on the overall performance of the Bank

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1.3 IMPORTANCE OF THE REPORT


For any business school student, only curricular activities are not enough for handling the real business situation. So it is an important opportunity for the students to know about the field of business through the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. On the basis of working experience for this period I have prepared this report and I have tried my best to relate the theoretical knowledge with the practical work situation.

1.4 METHODOLOGY OF THE STUDY


a. Study design
The study was fully descriptive in nature. The study was conducted using the participatory method. To know the in-depth information, the topic was discussed with the expert professionals related to bank for several times and review of record of BRAC Bank Limited and other related secondary information. The purpose was to get an idea about the whole activities of the branch where I did my practical orientation. Statistical data and other relevant information were gathered from secondary sources including several journals and booklets.

b. Data collection method


Data have been collected from two sources. These are as under: 1. Primary source 2. Secondary source

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1) The primary sources of data include the followings: a. Face to face conversation with the bank officers and staffs b. Direct conversation with the clients c. Practical deskwork

2) The secondary sources of data include as under: a. b. c. d. Annual report of BRAC Bank Limited. Different publications of BRAC Bank Limited. Unpublished data received from the Branch. Different text books.

Different circulars send by Head Office of BRAC Bank Limited and Bangladesh Bank.

c. Data Analysis: Data is analyzed by SPSS. In SPSS I imply various models like correlation, Regression.

1.5 LIMITATIONS OF THE REPORT


The main constraint of the study was insufficiency of information that was highly required for the study. Since the bank officials are very busy with their activities, as a result it was thought to have proper knowledge as was required for the study. The duration was not enough to cover all aspects of banking. There some information which are confidential for collecting the data. So, some data could not been collected for confidentiality or secrecy of management. The data and information related with the topic was not easily available because of confidentiality of the concern.

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CHAPTER II

A BRIEF OVERVIEW OF BBL

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CHAPTER 2
CHAPTER: A BRIEF OVERVIEW OF BBL 2.1 Historical Background 2.2 Vision, Mission & Objectives 2.3 ORGANOGRAM of BBL 2.4 Information Technology 2.5 Products & Services of BBL 2.6 Corporate Information at a Glance 2.7 Cash Flow Statement 2.8 Profit and Loss Account 2.9 Balance Sheet 2.10 Graphical Situation of BBL

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2.1 HISTORICAL BACKGROUND


BRAC Bank Limited, one of the latest generation of commercial banks started its journey on July 04, 2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of the worlds largest non-governmental development organizations founded by Fazle Hasan Abed in 1972. It has been the fastest growing Bank in 2004 and 2005. The 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 Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore Cap International, has been the fastest growing Bank in Bangladesh for the last three consecutive years. In the recent past the bank has gone public with price of shares reaching impressive heights, further showing promising future. BRAC Bank, a fully operational Commercial Bank, focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 2200 crore in loans to nearly 50,000 small and medium entrepreneurs in 2007. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank's footprint has grown to 151 branches, more than 450 SME unit offices and 300 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through 2006. In 2005, BRAC Bank had a $178 million portfolio consisting of around 21,000 loans with an average loan size of $8,000. It has around 400 regionally-placed loan processing units offering services in the heart of rural

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and urban communities and employs over 700 business loan officers around 60% of total staff. In addition to small business lending, BRAC Bank has fast growing remittance, savings mobilization and consumer lending businesses. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

International Finance Corporation


BBL has important international shareholdings apart from BRAC: IFC and ShoreCap. International Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas representatives, IFC helps local financial institutions find profitable ways to target small and medium sized companies. Funding comes from the Asian Development Bank, Canada, the European Commission, the Netherlands, Norway, the United Kingdom and IFC itself. IFC is a 5.36% shareholder in BBL. A new assistance program signed in August 2011 aims to double the banks number of small and medium enterprise clients in 18 months through campaigns to target women entrepreneurs and rural clients, introduce new products and train branch managers.

Shore Cap International Ltd


Another international institutional investor Shore Cap International Ltd. is an international private non-profit, equity company seeking to invest in small business banks and regulated micro finance institutions in countries with developing and transitional economies. Shore Cap typically invests between $500,000 and $2 million for an ownership position of 10-25% of a company. As a minority shareholder, Shore Cap seeks financial institutions with a strong, experienced management team and a committed set of local developmentminded investors. Shore Cap currently owns 0.86% of BBLs shareholdings.
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2.2

VISION, MISSION, GOAL, AND CORE VALUES

CORPORATE VISION
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.

CORPORATE MISSION
Sustained growth in Small & Medium Enterprise sector Continuous low-cost deposit Growth with controlled growth in retail assets. Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors. Continuous endeavor to increase non-funded income Keep our debt charges at 2% to maintain a steady profitable growth Achieve efficient synergies between the banks branches, SME unit offices and BRAC field offices for delivery of remittance and Banks other products and services Manage various lines of business in a full controlled environment with no compromise on service quality Keep a divers, far flung team fully controlled environment with no compromise on service quality Keep a diverse, far flung team fully motivated and driven towards materializing the banks vision into reality

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GOAL
BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprise throughout Bangladesh. It will be a world class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.

CORE VALUES
Our Strength emanates from our owner - BRAC. This means, we will hold the following values and will be guided by BRAC as we do our work. Value the fact that one is a member of the BRAC family Creating an honest, open and enabling environment Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit Strive for profit & sound growth Work as team to serve the best interest of our owners Relentless in pursuit of business innovation and improvement Value and respect people and make decisions based on merit Base recognition and reward on performance Responsible, trustworthy and law-abiding in all that we do.

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2.3 CORPORATE INFORMATION AT A GLANCE

Registered Name Slogan

: BRAC Bank Limited : Committing Human Capital to Our growing economy

Date of Incorporation

: 1999

Inauguration of the first branch : 4th July, 2001 Head Office Official Logo : 1, Gulshan Avenue, Gulshan-1, Dhaka-1212 :

Chairman Managing director & CEO Board of directors Number of Branches Number of Employees Authorized Capital Paid up Capital Services provided

: Mr. Muhammad A. (Rumee) Ali : Mr. Syed Mahbubur Rahman :7 : 151 : 7,000 (Approximately) : 12,000 Million : 3,212 Million : Deposit scheme, SME loan, credit facility, and Foreign exchange services.

Banking Operating System Technology Used

: Both conventional and foreign exchange system : Member of SWIFT, Enterprise Resource Planning (ERP), online Banking, and UNIX based software.

E-mail Website SWIFT

: enquiry@bracbank.com : www.bracbank.com : BRAKBDDH

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2.4

ORGANOGRAM OF BRAC BANK LIMITED

BOARD OF DIRECTORS

Mr. Muhammad A. (Rumee) Ali Chairman

Mr. Shib Narayan Kairy Director

Mr. Quazi Md.Shariful Ala Director

Ms. Nihad Kabir Director (Independent)

Dr. Hafiz G.A. Siddiqi Director

Ms. Tamara Hasan Abed Director

Mr. Syed Mahbubur Rahman Managing Director and CEO

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MANAGEMENT COMMITTEE

Mr. Syed Mahbubur Rahman Managing Director & CEO

Mr. Mohammad Mamdudur Rashid Deputy Managing Director

Mr. Rais Uddin Ahmad Group Company Secretary, Head of Legal & Regulatory Affairs and CAMLCO

Mr. Nabil Mustafizur Rahman Chief Credit Officer

Mr. Nawed Iqbal Chief Technology Officer

Mr. Syed Faridul Islam Head of Risk Management

Mr. Firoz Ahmed Khan Head of Retail Banking

Mr. Mahmoodun Nabi Chowdhury Head of Corporate Banking & Cash Management & Custodial Services

Ms. Tahniyat Ahmed Karim Head of Human Resources

Mr. Shah Alam Bhuiyan Head of Operations

Mr. Abdur Rahman Head of SME Banking

Mr. M. Sarwar Ahmed Head of Special Assets Management (SAM)-SME & Retail Banking

Mr. Zeeshan Kingshuk Huq Head of Corporate Affairs & Service Quality

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2.5 INFORMATION TECHNOLOGY


Banking operations of the branches have been computerized to minimize costs and risks and to optimize benefits and overall efficiency for improved services. The bank generates the relevant financial statements at the end of the day. The bank has installed Reuters screen for smooth operation of foreign currency dealings. The bank has also hosted a web page of its own. On-line banking has been introduced by the bank to provide better services to the customer. The bank has introduced ATM. The bank has installed SWIFT to facilitate quick international trade and payments arrangements. The bank has already introduced VISA and MASTER debit and credit cards.

2.6 PRODUCTS & SERVICES OF BRAC BANK LIMITED


BRAC Bank Ltd. is currently focusing on different areas of business activities. These are: SME Banking Retail Banking Retail Distribution

Non Funded Business and Secured Value Center Alternate Delivery Channel Unsecured Value Center Liability Service Quality/Business Intelligence Collections Cross Selling Regional Distribution
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Corporate Banking Probashi Banking Cards Treasury & financial institution Marketing & corporate affairs The businesses directly related to customer service are briefly described in the following sections:

SME Banking:
BRAC Bank considers the population of Bangladesh the most valuable resource of the country. According to BRAC Bank, after achieving liberation, the attainment of economic uplift should be our most important goal. Micro lenders are working here in the financial field, providing very small amount and on the other hand regular commercial banks have been providing bigger amount of loans to larger industries and trading organizations. But the small and medium entrepreneurs were overlooked. This missing middle group is the small but striving entrepreneurs, who because of lack of fund cannot pursue their financial uplift, as they have no property to provide as equity to the commercial banks. With this end in view-BRAC Bank was opened to serve these small but hard working entrepreneurs with double bottom line vision. As a socially responsible bank, BRAC Bank wants to see the emancipation of grass-roots level to their economic height and also to make profit by serving the interest of missing middle groups. 50% of BRAC Banks total portfolio usually collected from urban areas, are channeled to support these entrepreneurs who in future will become the potential strength of our economy. The Bank currently is the market leader in giving loans to Small and
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Medium Entrepreneurs. It has been doing this for the last five years. Showing SME Network coverage in the figure below:
SME products

Currently BRAC Bank is offering 13 SME packages. These are listed and briefly explained below: Anonno Rin - Anonno Rin is a business loan designed to finance small scale trading, manufacturing and service ventures, especially to help small and medium entrepreneurs to meet their short-term cash flow shortages and bridge the fund-flow gaps. Apurbo Rin Apurbo is a loan facility for small and medium business. Apurbo loan has been designed and targeted for relatively bigger business units requiring loan above tk. 8 lacs to 30 lacs.

Pathshala Rin - Pathshala Rin is a loan designed to meet the needs of small and medium sized private educational institutions, such as kindergartens, schools and colleges etc. Aroggo Rin - Aroggo is a loan allowed to various Health service Provider like private clinics, diagnostics centers and doctors' chambers. The product offers fixed assets purchase financing under equated Monthly Installments.

Digoon Rin - This is a double loan on clients deposits. With this, clients do not need to encash their savings rather they can take double amount of loan on their deposit for their business expansion.

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Supplier Finance - SUPPLIER FINANCE is a loan facility for the enlisted Suppliers of various large retailers, marketing companies, distributors, exporters etc. This products main objective is to help various Suppliers to meet their short-term cash flow shortages or bridge the fund-flow gaps. Amount is minimum BDT 3 lac up to maximum BDT 30 lac.

Prothoma Rin - "PROTHOMA RIN" is a loan facility for small and medium sized business, which is operated by women entrepreneur. The product offers terminating loan facilities for the purpose of working capital finance and/or fixed assets purchase. Loan limit is from minimum BDT 3 lac up to maximum of BDT 9.5 lac. BIZNESS Account - Bizness Account is an interest bearing current account for sole proprietorship business Entrepreneur. Opening balance required is only BDT-10, 000.00

Cash Secured Loan - "Cash Secured Loan" is a loan facility for small and medium sized business. There are two types of loan facility in the product i.e. Secured Loan and Secured Overdraft. These facilities are fully secured by fixed deposit of BRAC Bank. Amount is minimum BDT 3 lac up to maximum BDT 30 lac. BIZNESS Loan - Bizness loan is an equated monthly loan facility for all types of business who have healthy bank transactions for the purpose of working capital finance and/or fixed assets purchase. Loan limit is minimum BDT 10 lac to maximum of BDT 50 lac.

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Proshar - "Proshar" is a loan facility for small & medium sized manufacturing business. The product offers loan facilities for working capital finance and/or fixed assets purchase. Trade Plus - Trade plus is a composite facility for small & medium sized import-oriented businesses to meet their trade finance requirements.

Super Supply Loan - Super Supply Loan is a loan facility for Suppliers of various large retailers, marketing companies, manufacturing

companies and various corporate houses. This products main objective is to help various Suppliers to meet their financial requirements.

Retail Banking:
There are retail banking products of three categories. One is Loan Products, second is Deposit Products and the other is Cards.

In Loan Products category there are eleven services/products facilitating clients demands. These are:

Salary Loan, NoW Loan, Car Loan, Teachers Loan, Study Loan, Travel Loan, Credit Card Loan, Top Up Loan, HighFlyer Loan, Secured Loan/ OD and Doctors Loan. Under Deposit Products category currently there are ten services/products in total. These are:

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Fixed Deposit, Interest First, Abiram Account, DPS, EZee Account, Savings Account, Short Term Deposit, Current Account, Salary Account and Step Up Fixed Deposit.

Under Cards category there are three types of cards products active. One is ATM Debit Cards, Co-Branded Cards and another is credit card. ATM Debit Cards facilitates money withdrawal of up to BDT 1, 00,000.00 per day. Also checking balance statements of ATM and POS (Point Of Sale) transactions. The Cards Department provides 24 hour customer support hotline to resolve queries and problems.

The Co-Branded Cards are from Aarong, ALICO and DIA Gold. The BRAC Bank Aarong ATM Card gives users 5% cash back facility from shopping in any Aarong outlets. The holder of BRAC Bank ALICO ATM Card can enjoy a special life insurance facility with insurance coverage of upto BDT 200,000.00. And BRAC Bank DIA Gold ATM card holder will enjoy a special cash back and cash discount feature. This feature is 10% discount from any diamond product bought and 8% discount on making charge of any gold products bought from DIA Gold.

In the credit card there are three types of card. These are Platinum, Universal gold and universal classic card. And all cards are dual currency card.

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Corporate Banking:
Corporate Banking section has three types of coverage currently. These are:

1. Corporate Loan Products 2. Trade Financing 3. Corporate Cash Management Corporate Loan Products is offering six services at the moment. The services are listed and described in the following section:

Corporate Loan Products

Overdraft This is an on-demand credit facility designed to meet day-to-day operational activities of the business, including purchase of raw materials and expenses.

Term Loan Short Term Loan/Revolving Loan: This scheme is to meet different short-term fund requirements of the client. Payment of duty, Tax, VAT and other expenses related to the release of goods from customs through pay orders in the name of customs authority or Bangladesh Bank cheque is payable through this scheme.

Lease Finance One of the more convenient long-term sources of acquiring capital machinery and equipment. The client is given an opportunity to have exclusive rights to use an asset, for an agreed period of time, against payment of rent.

Loan Against Trust Receipt (LATR) This is advancement against a Trust Receipt provided to the client when the documents covering an import shipment are given without payment. Under this system, the client will hold the
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goods of their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid. Work Order Finance BRAC Bank provides Work Order finance facility for its valued clients. Through this arrangement, clients can avail loan facilities against valid Work Orders up to a certain proportion.

Medium Enterprise - The products offered under this sort of financing are versatile in nature and each product is tailored according to the need of the borrower, under certain parameters. The range of organizations this sort of financing caters to include proprietorship concerns, private limited companies, educational institutions as well as NGOs. The purpose of this unit is to serve medium enterprises having facility requirements like a large corporate in nature, but smaller in volumes. The facilities may range from a single-funded or non-funded limit to a composite credit facility that includes various corporate products. The Bank believes that the emerging medium enterprise of today is tomorrows large corporate that will facilitate the true growth of the nation.

Trade Finance:
Letter of Credit (LC): This facility is related to import or local purchase of different items. It is also provided for the import and export of goods (such as raw materials, machinery, equipment, any trading item).

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Letter of Guarantee (LG): To meet different contractual requirement such as participating in Bid, Performance Guarantee and Advance Payment guarantee for different contractual requirements.

Corporate Cash Management

NCS BRAC Bank will collect clients bills through their Bills Pay Machines in the strategic locations of the city and also at the correspondent branches, where the BRAC Bank branches are not available and at the booths.

PTS PTS will allow clients to disburse all kinds of payments anywhere in the country through BRAC Banks own branch network in Dhaka, Chittagong, Sylhet, Savar, Feni and the partner bank branches all over the country.

Advantages to Employers BRAC Bank provides services such as Salary Upload, Multi-Location Salary, payroll management, MIS on payroll etc. Salary Upload facility requires a consolidated cheque of the total salary amount and a break-up of the disbursements to the employees in soft and hard copy format, BRAC Bank will do the rest. Multi-Location Salary features salary disbursal in multiple locations within BRAC Bank network. Payroll MIS creates standard reports for corporate clients with neatness and conciseness.

Advantages to Employees Along with all other Retail Banking services, employees can avail 24 Hour Banking through ATMs, Online Banking, Extended Banking Hours till 8:00 PM except for Thursdays and Fridays and Payday Overdraft on request for emergency situations (this is adjusted with the employees following months salary).

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Cash Management Services BRAC Bank's national Collection Services (NCS) is designed to assist corporate with nationwide collection requirements by providing faster funds availability in a cost- effective manner. Cash Collection Services: Through BRAC Bank Cash Collection Services they collect cash directly from clients offices/business premises. The whole process is arranged with executive logistic services.

Drop Box Facility: On request, BRAC Bank can install Drop Box at customers office which can be used for depositing cheques or any instruction. Their representative will visit clients office and clear the box every day.

Probashi Banking

Our nations workforce who are away from their families, relatives, friend and above all, from breathing the air of our country, working abroad for the prosperity of their lives and the nation in the long run while sacrificing a lot. BRAC Bank, through Probashi Banking services, is facilitating the banking needs of remitters. Currently BRAC Bank is providing six services for remitters under Probashi Banking. These products/services are described below:

Probashi Current Account It is ideal for Probashi Bangladeshis who do not wish to earn interest due to religious reasons. This account also comes with cheque book and ATM card and is ideal for regular transaction.

Probashi Savings Account This account provides interest which is paid in June and December of each year. This account comes with a cheque book and ATM Card and is ideal for Probashi Bangladeshis who want to save. Accounts are maintained in Taka.

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Probashi DPS Is a savings scheme specially designed for the Probashi clients. This service requires monthly installment of minimum Tk. 500.00 and any multiples. Provides a savings account with a personalized cheque book, earnings remitted to savings account will be automatically transferred on the due dates and loans are provided against 90% of deposited amount. Monthly Installment 500 1000 Amount after maturity 4 years 28,667 57,334 7 years 58,650 117,300 11 years 116,603 233,207 14 years 179,550 359,101

Probashi Fixed Deposit A fixed deposit account allows remitters to deposit their money for a set-period of time, thereby earning them a higher rate of interest in return. Fixed Deposits can be made from 3 months to 3 years. Interest is paid on the maturity at a very attractive rate. Accounts are maintained in Taka. Probashi Abiram Probashi Abiram is a Fixed Deposit which is ideal for Probashies who want to get a return every month. If one has sufficient funds, this can be made into a fixed deposit from 1 year to 3 years and interest will be paid every month on their Savings Account automatically. This is ideal for customers who want to pay their DPS installments. Accounts are maintained in Taka. Probashi Shubidha (NRB Beneficiary) Account This is a specialized account for Non-Resident Bangladeshis where the remitter can open an account for the Beneficiary. The beneficiary can then avail all the services offered by BRAC Bank such as: SMS Banking, Phone Banking, Internet Banking etc. When the beneficiarys account is setup, the Remitter just requires the account number, and amount of money to be sent to make a safe, fast and efficient transaction. Transaction is completed within 6 hours of receiving instructions.
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2.7 CASH FLOW STATEMENT


Cash flow statement for the year ended December 31, 2011

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2.8 PROFIT AND LOSS ACCOUNT


Profit and Loss Account for the year ended December 31,2011

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2.9 BALANCE SHEET

Balance Sheet As on December 31, 2011

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2.10 GRAPHICAL SITUATION OF BBL

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CHAPTER III

MY INTERNSHIP EXPERIENCE

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CHAPTER 3
CHAPTER: MY INTERNSHIP EXPERIENCE 3.1 Experience regarding Personal Improvement 3.2 Branch Related Experience 3.3 Practical Working Experience

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BRAC Bank Rampura Branch is one of the established branches of BRAC Bank. It has built up a very good customer base and performing really well. I got the opportunity to work as an intern in the Rampura branch and the tenure of my internship was 15th April to 15th July. Through this period I had many responsibilities and job roles. As I was an intern, my tasks were mostly related to general banking. I got to learn a lot of things about branch banking during this time. I got familiar with the work environment, I got to know how all the branches are centralized and about the process flow. I mainly had to report to the Branch Manager, but my supervisor was the Customer Service Manager (CSM) of the branch. I worked as a BSSO (Branch Sales & Service Officer), so I gathered knowledge regarding customer service & sales.

3.1 Experience Regarding Personal Improvement

Time management
Time management is the great virtue for each & every person. As a private university student, I spent only 4 to 5 hours in the university campus with gossiping, taking tea & snacks. But in the professional life like bank, each & every employee reach in the office not more than 9.30 am and go out from office not less than 6pm due to heavy working pressure. So, I also maintained my office time. They do their daily task in daily basis. I also helped them to make their task easier.

Direct communication with customer


Todays world is so challenging. Customer has more power due to wide range of switching option. I was little nervous in my first few days to communicate with customer. But in later, I was enjoying serving the customer.

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Formal dress code


I follow various celebrity like Salman Khan (bollywood), Tom cruise (Hollywood). Its not related with my report. But, regarding formal dress code, I always wear jeans, T-shirt, casual shirt, snicker. I hardly wear formal pants, shirt and shoe. In the 3 months internship period I maintained the dress code regularly and Im habituated with this now.

Neat & Clean


I had long hair with little beard before starting my internship program. After starting internship, make my hair short, shaving in time, cutting nail, and polish shoe in time. I have wearied ironed and clean cloth regularly. First few days, I feel boring but now I am habituated of it.

Teamwork
Theoretically I read what is team and teamwork but practically I did not have experience about it. In the professional life theres exist team like Bangladesh cricket team. Each & every team member has some responsibilities and target to fill up. I observed it very closely and helped them to make their task easier.

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3.2 BRANCH RELATED EXPERIENCE


Fig: Organogram of Rampura branch,BBL BSSO BSSO BSSO BSSO BSSO Teller BSSO Teller BSSO Teller Branch Manager RM (empty) ARM HT Teller Teller Teller Teller CSM (evening) HT Teller Teller
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CSM (morning)

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Floor Plan of Rampura Branch, BBL


Fig: Floor plan of Rampura Branch,BBL

VAULT

CASH COUNTER
(Elias MIah)

Credit Card (Lubna)

1 FLOOR
Stairs

st

Service
Customer

ENTRY ENTRY
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(ALOKA AICH)

Morning CSM

Evening CSM

BSSO

BSSO

BSSO

2 FLOOR
Branch Manager

nd

BRANCH MANAGER

BSSO
BSSO

BSSO FOREIGN REMITTANCE BSSO

Customer

STAIRS

Service

Waiting Area

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KITCHEN WASH ROOM


PREMIUM/SUPREME COUNTER
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LOCKER VAULT

3.3 PRACTICAL WORKING EXPERIENCE

1. Account opening:
Account Opened by in 2 ways a. System generated: when BSSO opened account by using computer system which is called system generated account. It has not included any debit card or cheque book. After opening this account, the debit card or cheque book will come to the branch. b. Welcome pack: Welcome pack means, the account already has created and debit card or cheque book included with the pack. Just name and nominee updated required for this account.

There are 3 types of account in BRAC Bank Limited, which are described belowA. Savings Accounts B. Current Accounts C. Term Deposits

A. Savings account: The bank provides savings account services for the case of its clients. It offers both personal and corporate savings accounts to its clients in every branch.

i. ii. iii. iv.

Triple benefit savings account Savings classic account Aporajita Account Future star account
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Product Savings Classic

Purpose Savings Classic

Annual Fee BDT 600 + VAT at the time of account opening and on

Interest Rate Up to 8.5% p.a., Account Interest payment: Half yearly

is a local currency interest-

bearing account with cheque book facility Triple Benefits Savings Triple Benefits Savings Account currency is a

anniversary of every following year No Annual Debit Card Fees

bearing savings account with cheque book facility. Aporajita

interest-

local

Up to 8.5% depending on average balance Interest payment: Monthly maintained in a month

Aporajita Account is a

local currency interestbearing savings account available to all female subject to the customers local

Maintenance Fee time of account

No Annual Account

Up to 8.5% p.a. Interest payment: Monthly

BDT 600 + VAT at the

opening and on

regulations and / or Banking practice. Future Star

following year

anniversary of every

Future Star Account is school going children develop savings habit and also to

designed to encourage

4% to 8%depending on average balance maintained in a month to

create a future loyal customer base for the bank.

Interest payment: Yearly

B. Current Account: It is purely a demand deposit account. As many withdrawals are allowed to the customers, it is suitable when funds are to be collected and money is to be paid away at frequent interval. Some current account offered for lower income people, who want to use modern banking.
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Current account is most suitable for private individuals, traders, merchants, importers and exporters, mill and factory owners, limited company etc.

i. ii. iii. iv. v.


Product Current Classic Purpose

Current classic Current plus Ezee account Salary account Campus account
Annual Fee BDT 600 + VAT at the time of account opening and on anniversary of every following year BDT 500 + VAT will be charged No Annual Account Maintenance Fee or Annual Debit Card Fees or any other upfront fees If customers do not maintain a HalfYearly Average balance of BDT 25,000, the account will be charged with BDT 500 + VAT every half year Interest Rate Non Interest bearing Acc.

It is a local currency non interest-bearing account with cheque book facility.

Current Plus

It is a local currency non interest-bearing account with cheque book facility.

Non Interest bearing Acc.

Ezee

Ezee Account is a local currency interestbearing current account without cheque book facility.

No Annual Account Maintenance Fee BDT 600 + VAT at the time of account opening and on anniversary of every year. No Annual Account Maintenance Fee

4% p.a. Interest payment: Half yearly 4% p.a. Interest payment: Half yearly

Campus Account

Campus Account is an interest-bearing current account exclusively offered for university students

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Salary account

It is a local currency interest bearing current account for employees of different Corporate Houses to disburse their monthly salaries. Employees of MNC/LLC/MID CORP/NGO/Large proprietorship/Partnership firm, other than foreign nationals are eligible to open this account.

No Annual Account Maintenance Fee in Salary Account and account can be opened with any amount. Annual VISA Debit Card Fees of BDT 300 + VAT will be charged and on anniversary of every following year

4% p.a. Interest payment: Half yearly

C. Term Deposits: term deposit is very important for its contribution to the banks deposit creation process, because the highest amount of banks fund from its direct customers comes in the form of term deposit. For increasing the deposit base every commercial bank offers its customers various rates according to the amount of deposit.

i. ii. iii. iv. v. vi.

DPS Fixed deposit general Flexi DPS Interest first fixed deposit Freedom fixed deposit Abiram fixed deposit

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Product

Minimum Opening

Tenure

Interest Rate Interest along with Principal is maturity. paid at

Fixed Deposit General

50,000

1/3/6/12/24/36 (Months)

Freedom

Fixed Deposit

25,000

quarterly.

6/12/24/36 (Months)

Interest is paid It is a non-

transactional account that gives interest Abiram Fixed Deposit 1, 00,000 12/24/36 (Months) quarterly to the link

account automatically. Interest is paid monthly.

Fixed Deposits

Interest First

1,00,000

3/6/12 (Months)

Interest is paid in advance, at the time of opening.

Flexi

Deposits

Fixed

500

1-10 years

Matrix

As per the Interest Rate

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Requirements for opening an account


Two copies of passport size photographs ( for account holder) One copy passport size photograph of the nominee Any one photo ID card. ( National ID, Passport, Driving license) Introducer signature on account opening form and photograph TIN number (If any) Trade license Business seal Visiting card Partnership deed Affidavit (if needed)

Account Opening Procedure


Fig: account opening procedure

Applicant fills up the relevant application form in the application form in the prescribed

He/she is required to fill up the specimen signature card

For individual introduction is needed by an account holder

Account is opened

In the head office, account section will update the information.

After depositing the cash, BSSO will provide the debit card or cheque book if available. Then the BSSO send the AC form to the Head office.

The authorized officer scrutinizes the introduction and examine the documents submit

Issuance of deposit slip and the deposit must be made in cash. Also cheque is acceptable to the bank

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2. ATM Debit card:


ATMs are electronic machines, which are operated by a customer himself to deposit or to withdraw cash from bank. For using an ATM, a customer has to obtain an ATM card from his bank. The ATM card is a plastic card, which is magnetically coded. It can be easily read by the machine.

How to activate The ATM card holder has to call 16221 to activate the card. After calling call center number at 16221 then press 1 for Bengali language, then press 0 for communicating with call centre agent. He has to tell the agent that I want to activate my ATM card. Then the agent will ask various personal information related question e.g. what is your date of birth? What is your mothers name? Who is your nominee? Etc. After confirming that information the agent will activate the card.

How to re-issue In many case, customer lost or break their card. In that case, the card holder needs a new card. For getting a new card, customer has to go to the any branch of BRAC Bank Ltd also SME and Krishi service centre because of online banking. The bank will charge 345(including VAT) taka. After 5 working days the card will reach the requested branch but The PIN number of the card will send to mother branch from head office. The customer should collect the PIN number from his/her mother branch.

How to cancel or Stop Customer lost the card, no matter, just call 16221 > 1(Bengali) or 2(English) > 0 and tell the agent that Stop my ATM card. Then the agent similarly ask the question when you called for activating the card. After confirming the information the agent will stop the card. For cancelling the card, you should come to the bank and fill up a form regarding cancelling the ATM card.

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How to deliver & get from other branch When requested customer arrive to desk and asked for their card, then BSSO first identify the issue date of the card and deliver the card to the respective customer. BSSO also sent card to the other branch as per mail. When a customer requests to get card from other branch then the BSSO sent mail to the respective branch for sending the card.

How to reconcile Custodian of ATM cards reconcile cards each & every working day end. I have done this in my internship period. Below shown the example of reconciliation

Daily ATM card Reconciliation


DATE: Brought forward Receive from H/O Delivery Receive from other br. As per mail Sent to other Br. As per mail Sent for destruction TOTAL 20.07.2012 526 10 14 1 2 89 432 Remarks

Gulshan Br. Pabna Br., Comilla Br. For the month of April

Prepared by

Checked By

How to destroy If ATM card holders didnt receive the card within 3 months, then the custodian send the list of destructible card to the head office for destruction approval. After getting approval from head office, the custodian sent card to the head office for destruction.

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3. Chque Book related experience

Types of cheque book There are 2 types of cheque book. One is Debit cheque book which is applicable for savings and current account; another is credit card cheque book which is applicable for credit card holder.

How to request for a new cheque book Each & every current and savings account cheque book has an application leaf, which has to provide with sign and selecting amount of leaf. After 3 working days, the respective customer can collect cheque book from the branch. It will charge as per schedule of charges. If the application leaf lost, no matter, each & every branch has a form Requisition for a new cheque book just filling up the form and collect the cheque book after 3 working days.

How to deliver & get cheque book from other branch It is same as ATM card.

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How to reconcile Custodian of cheque book reconcile cheque books each & every working day end. I have done this in my internship period. Below shown the example of reconciliation

Daily Cheque Book Reconciliation


Savings Current

DATE: 20.07.2012 Brought forward Receive from H/O Delivery Receive from other br. As per mail Sent to other Br. As per mail Sent for destruction TOTAL

TOTAL

59 10 6 0 0 5 58

79 8 10 0 0 3 74

138 18 16 0 0 8 132

Prepared by

Checked By

How to destroy If cheque book account holders didnt receive the cheque book within 3 months, then the custodian send the list of destructible cheque book to the head office for destruction approval. After getting approval from head office, the custodian sent cheque book to the head office for destruction.

How to cancel or stop It is same as ATM card

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4. ATM card PIN


Without PIN number, card holder cant access the card in the ATM & POS machine. PIN number is very important for card holder. It should be kept safe place for further incidents.

How to request for a new PIN It is same as ATM card

Reconciliation It is same as ATM card

How to deliver & get from other branch It is same as ATM card

How to destroy It is same as ATM card

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5. Receive courier:
I was responsible for receiving all the couriers on behalf of the branch. The courier boy used to come in my desk and deliver all the couriers. There were a few steps that I needed to follow when courier came.The branch maintains an inward mail register where all the incoming mails were written down, the things that were needed to mention in the register were, senders name, mailed to, description of mail, receivers initials, the code number written on the receipt and remarks. When a mail came, I had to open the mail and check it, then write down the POD number, i.e. the number written on the receipt. Then I would sign the receipt, put the received seal and give it back to the courier boy. Each day, the courier used to arrive at three different times. The first courier used to come at around 10:15 a.m. the second one came around 12 p.m. and the third came around 2 p.m. There were different sorts of mail that used to come every day. But there were also some common mails that used to come every day. Such mails included documents, cards, pin number, cheque books, return cheques etc from the head office. Other than that there was mail from other branches and other institutions. The morning courier mainly contained captured cards, these are the cards of the Rampura Branch guests that got stuck in the ATM booths at different locations and came to the branch for the collection of the guests. The captured cards that came through the courier were entered in the Captured Card Register. The pin numbers also used to come in the morning mail, the pin numbers were the secret numbers for the guests to operate the debit cards. After receiving the pin numbers, they were written down to the PIN register, from where the pins were delivered. And the returned documents included Account Opening Forms (AOF), other forms or papers which sent to the head office for processing but were returned due to some errors made by the branch. The late afternoon courier mostly contained debit cards, credit cards and cheque books. The guests give card request to the BSSOs (Branch Sales and Service Officers) when there is some problem with their current cards and the new cards come through
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courier. The guests also give cheque book requests and the cheque books also come through mail. I was also responsible for making entries on the registers of the respective documents for example cheque book register, debit card register etc.

6. Foreign Remittance service experience


Remittance is the vital input for our countrys growth. Each & every year Bangladesh receives vast amount of foreign currency. BRAC Bank has 3,500 pay out location.

SL 1 2 3

NAME

GL

DIGIT 10 16 16(only UK)

Sample 1234567890 1234567892514362 1234567892365847

Process System Mail Mail

Western Union 1512050260140001 Xpress Money MT-express 1512050260140007 1512050260140015

Placid

1512050260140016

12(but pin 04)

123456789362PIN1234 Mail

IME

1512050260140017

11(951, 911,943)

911358456

System

6 7 8 9 10 11 12

TransFast Money gram Merchantrade Al-Ansary Samba Pay Cash Ria

1512050260140020 1512050260140021 1512050260140022 1512050260140024 1512050260140028 1512050260140038 1512050260140025

33RB/TF/AF 8 14 7 12 6-18 6-18

33TF12365849 58456932 12345678963254 GIT-1234567 123456789456 SE12345876 IT12347856

System Mail System System System System System


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7. New retail banking business model

Segment Eligibility Identification mark

Premium Banking BDT 50 lac & above Platinum debit card POP up message in finacle

Supreme Banking BDT 10 lac to 50 lac Supreme privilege card POP up message in finacle

Excel Banking

Easy Banking

BDT 50K to 10 BDT less than lac 50K Excel privilege card POP up message in finacle Only planet card

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8. Preparing fixed deposit and DPS forms for Sanction


Fixed Deposits also known as term deposits are the fixed amount of money that the guests keep in a separate account named fixed deposit for a specific time period to earn interest on that amount. This interest is greater than the savings rate that the bank offers. Different rates of interest are being offered for different amount of money saved. An individual will receive an interest of 12.5% if he keeps 50K or more BDT. There are different types of fixed deposit products as mentioned earlier in the paper. Deposit Premium Scheme (DPS) is a monthly basis deposit scheme where the depositor deposits a fixed amount every month for a fixed period and on maturity gets a consolidated amount including interest. I was also responsible to prepare the fixed deposit and deposit premium scheme (DPS) forms on behalf of the clients. Only account holders of BRAC Bank LTD. could open these schemes. The new account, i.e. fixed deposit or DPS would be linked to the mother account of the client. I used to write the particulars of the client, the scheme that they wanted and then give the form to a BSSO for verification. Information may be filled in the form if the client wishes to change the nominee to the scheme. Then the particulars of the nominee should also be included. After verification by the BSSO, I used to pass the form to the CSM for her approval. Later I would scan the form and send it to the head office for approval. After approval of the scheme from the head office, the hard copy of the form would also be sent to the head office through courier.

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9. Other service related experience


i. ii. iii. iv. v. Pay order E-statement Internet Banking Register khata maintenance ANTI MONEY LAUNDERING POLICY

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CHAPTER IV

OVERALL FINANCIAL PERFORMANCE ANALYSIS

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CHAPTER 4
CHAPTER: OVERALL FINANCIAL PERFORMANCE

4.1 Financial Performance of BBL 4.2 Graphical Analysis of Financial Elements 4.3 Correlation and Regression of Financial Elements 4.4 Financial Ratio Analysis 4.5 SWOT Analysis 4.6 Share Holding Structure

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4.1 The table below shows the financial performance of BRAC Bank Ltd. From 2004 to 2011
Table-4.1: Financial Performance analysis of BRAC Bank Limited
Amount BDT in million
Profit After Tax 99 193 334 618 973 1304 1670 1702

Particulars Year 2004 2005 2006 2007 2008 2009 2010 2011

Deposits

Loans

Investments

Total Assets 10016 16876 30012 45383 72442 95127 117298 133201

Imports

Exports

8169 13409 23002 37368 58007 75220 88158 103726

5820 11791 19557 32461 52677 64151 82461 90822

1626 2164 3768 4997 8245 10375 12856 14199

562 3015 3890 5114 10148 16773 33660 35400

136 277 412 641 568 681 1819 2340

Source: Annual report 2008 to 2011 of BRAC Bank Ltd.

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4.2 Graphical Analysis of Financial Elements DEPOSIT FROM 2004 TO 2011

(amount BDT in million)


120000 100000 80000 60000 40000 20000 0 2004 2005 2006 2007 2008 2009 2010 2011

YEAR 2004 2005 2006 2007 2008 2009 2010 2011

DEPOSIT 8169 13409 23002 37368 58007 75220 88158 103726

Amount BDT in million

The deposit of BBL is increasing continuously and rapidly. In 2004 the deposit was 8,169 million taka. But in 2011 the deposit is 1,03,726 million taka. It indicates that depositors of BBL increasing day by day.

LOAN FROM 2004 TO 2011 (amount BDT in million)


100000 80000 60000 40000 20000 0 -20000 2004 2005 2006 2007 2008 2009 2010 2011

YEAR 2004 2005 2006 2007 2008 2009 2010 2011

LOAN 5820 11791 19557 32461 52677 64151 82461 90822

Amount BDT in million

The loan of BBL is increasing continuously and rapidly. In 2004 the deposit was 5,820 million taka. But in 2011 the deposit is 90,822 million taka. It indicates that loan disbursement of BBL increasing day by day.
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INVESTMENT FROM 2004 TO 2011 (amount BDT in million)


15000 10000 5000 0 2004 2005 2006 2007 2008 2009 2010 2011

YEAR INVESTMENT 2004 1626 2005 2164 2006 3768 2007 4997 2008 8245 2009 10375 2010 12856 2011 14199
Amount BDT in million

The investment of BBL is increasing continuously and consistently. In 2004 the investment was 1,626 million taka. But in 2011 the investment is 14,199 million taka. It indicates that investment of BBL increasing consistently.

INVESTMENT FROM 2004 TO 2011


YEAR

(amount BDT in million)


150000 100000 50000 0 2004 -50000 2005 2006 2007 2008 2009 2010 2011

TOTAL ASSETS

2004 2005 2006 2007 2008 2009 2010 2011

10016 16876 30012 45383 72442 95127 117298 133201

Amount BDT in million

The total asset of BBL is increasing continuously and consistently. In 2004 the total asset was 10,016 million taka. But in 2011 the total asset is 1,33,201 million taka. It indicates that total asset of BBL increasing consistently.

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IMPORT FROM 2004 TO 2011 (amount BDT in million)


40000 30000 20000 10000 0 -10000 2004 2005 2006 2007 2008 2009 2010 2011

YEAR 2004 2005 2006 2007 2008 2009 2010 2011

IMPORT

562 3015 3890 5114 10148 16773 33660 35400

Amount BDT in million

In 2004 to 2011 the import is increasing two or three times than previous year. So we can say that the bank accelerate its foreign exchange performance. In 2004 it was 562 million and 2011 it raised to 35,400 million.

EXPORT FROM 2004 TO 2011 (amount BDT in million)


2500 2000 1500 1000 500 0 -500 2004 2005 2006 2007 2008 2009 2010 2011

YEAR 2004 2005 2006 2007 2008 2009 2010 2011

EXPORT

136 277 412 641 568 681 1819 2340

Amount BDT in million

In 2004 to 2011 the export is increasing continuously. In 2004 it was 136 million and 2011 it raised to 2,340 million. So we can say that the bank accelerate its foreign exchange performance.

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PROFIT AFTER TAX FROM 2004 TO 2011


YEAR
2000 1500 1000 500 0 -500 2004 2005 2006 2007 2008 2009 2010 2011

Profit after tax

2004 2005 2006 2007 2008 2009 2010 2011

99 193 334 618 973 1304 1670 1702

Amount BDT in million

In 2004 profit after tax was only 99 million taka. But profit after tax increasing continuously and so rapidly due to gaining trust from customer. In 2010 profit after tax was 1,670 million taka. It indicates that, in 2010 the bank performed most efficiently. But in 2011 the bank is not perform well due to economic recession, political imbalance etc. Hope next year BBL will perform well more than any other financial years.

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4.3 Correlation and Regression of Financial Elements


Deposit and profit after tax
Table-4.2: Correlations between deposit and profit after tax DEPOSIT Pearson Correlation DEPOSIT Sig. (2-tailed) N Pearson Correlation P.A.T Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 8 .995
**

P.A.T 1 .995
**

.000 8 1

.000 8 8

Table-4.2.1: Regression between deposit and profit after tax Model R R Square Adjusted R Square Std. Error of the Estimate 1 .995
a

.989

.987

4058.622

Predictors: (Constant), P.A.T

Table-6.2.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 P.A.T Dependent Variable: DEPOSIT 55.120 2.369 .995 23.264 .000 3389.380 Std. Error 2495.361 Beta 1.358 .223 t Sig.

Table 4.2 shows the correlation between deposit and profit after tax. The correlation between deposit and profit after tax is 0.995 which indicates very strong relationship between them. The value of R2 is 0.989 means that for each one unit increase of deposit the profit after tax increase to 0.989. Table 4.2.2 shows the regression coefficient between deposit and profit after tax for 2004 to 2011 is 55.120. It is the rate of changes profit after tax and the deposit. And the value of coefficient is 3389.380. That means the regression equation is: Y = 3389.380 + 55.120 x where, y = profit after tax and x = deposit

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Deposit and loan


Table-4.3: Correlations between deposit and loan DEPOSIT Pearson Correlation DEPOSIT Sig. (2-tailed) N Pearson Correlation LOAN Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 8 .998
**

LOAN 1 .998
**

.000 8 1

.000 8 8

Table-4.3.1: Regression between deposit and loan Model R R Square Adjusted R Square Std. Error of the Estimate 1 .998
a

.996

.995

2410.745

Predictors: (Constant), LOAN

Table-4.3.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 LOAN Dependent Variable: DEPOSIT 1.104 .028 .998 39.306 .000 1252.926 Std. Error 1523.398 Beta .822 .442 t Sig.

Table 4.3 shows the correlation between deposit and loan. The correlation between deposit and loan is 0.998 which indicates very strong relationship between them. The value of R2 is 0.996 means that for each one unit increase of deposit, the loan increase to 0.996. Table 4.3.2 shows the regression coefficient between deposit and loan for 2004 to 2011 is 1.104. It is the rate of changes loan and the deposit. And the value of coefficient is 1252.926. That means the regression equation is: Y = 1252.926 + 1.104 x where, y = loan x = deposit

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Import and export


Table-4.4: Correlations between import and export IMPORTS Pearson Correlation IMPORTS Sig. (2-tailed) N Pearson Correlation EXPORTS Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). Table-4.4.1: Regression between import and export Model R R Square Adjusted R Square Std. Error of the Estimate 1 .964
a

EXPORTS 1 .964
**

.000 8 .964
**

8 1

.000 8 8

.930

.918

225.056

Predictors: (Constant), IMPORTS

Table-4.4.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 IMPORTS Dependent Variable: EXPORTS .055 .006 .964 8.927 .000 116.679 Std. Error 115.112 Beta 1.014 .350 t Sig.

Table 4.4 shows the correlation between import and export. The correlation between import and export is 0.964 which indicates very strong relationship between them. The value of R2 is 0.930 means that for each one unit increase of export the import increase to 0.930. Table 4.4.2 shows the regression coefficient between export and import for 2004 to 2011 is 0.055. It is the rate of changes import and the export. And the value of coefficient is 116.679. That means the regression equation is: Y = 116.679 + 0.055 x where, y = import x = export

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Investment and total asset


Table-4.5: Correlations between investment and total asset INVESTMENT Pearson Correlation INVESTMENT Sig. (2-tailed) N Pearson Correlation Total Asset Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 8 .999
**

Total Asset 1 .999


**

.000 8 1

.000 8 8

Table-4.5.1: Regression between investment and total asset Model R R Square Adjusted R Square Std. Error of the Estimate 1 .999
a

.999

.999

172.176

Predictors: (Constant), Total Asset

Table-4.5.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 Total Asset Dependent Variable: INVESTMENT .104 .001 .999 74.602 .000 523.848 Std. Error 109.106 Beta 4.801 .003 t Sig.

Table 4.5 shows the correlation between investments and total asset. The correlation between investments and total asset is 0.999 which indicates very strong relationship between them. The value of R2 is 0.999 means that for each one unit increase of investment the total asset increase to 0.999. Table 4.2.2 shows the regression coefficient between investments and total asset for 2004 to 2011 is 0.104. It is the rate of changes of investments and total asset. And the value of coefficient is 523.848. That means the regression equation is: Y = 523.848 + 0.104 x where, y = total asset x = investment

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Total asset and deposit


Table-4.6: Correlations between total asset and deposit Total Asset Pearson Correlation Total Asset Sig. (2-tailed) N Pearson Correlation DEPOSIT Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). Table-4.6.1: Regression between total asset and deposit Model R R Square Adjusted R Square Std. Error of the Estimate 1 .999
a

DEPOSIT 1 .999
**

.000 8 .999
**

8 1

.000 8 8

.998

.998

2120.051

Predictors: (Constant), DEPOSIT

Table-4.6.2: Regression coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 DEPOSIT Dependent Variable: Total Asset 1.302 .022 .999 58.288 .000 -1184.268 Std. Error 1361.187 Beta -.870 .418 t Sig.

Table 4.6 shows the correlation between total asset and deposit. The correlation between total asset and deposit is 0.999 which indicates very strong relationship between them. The value of R2 is 0.998 means that for each one unit increase of total asset the deposit increase to 0.998. Table 4.6.2 shows the regression coefficient between total asset and deposit for 2004 to 2011 is 1.302. It is the rate of changes total asset and deposit. And the value of coefficient is -1184.268. That means the regression equation is: Y = -1184.268 + 1.302 x where, y = deposit x = total asset

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Deposit and export


Table-4.7: Correlations between deposit and export DEPOSIT Pearson Correlation DEPOSIT Sig. (2-tailed) N Pearson Correlation EXPORTS Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). Table-4.7.1: Regression between deposit and export Model R R Square Adjusted R Square Std. Error of the Estimate 1 .889
a

EXPORTS 1 .889
**

.003 8 .889
**

8 1

.003 8 8

.789

.754

390.228

Predictors: (Constant), DEPOSIT. Table-4.7.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 DEPOSIT Dependent Variable: EXPORTS .019 .004 .889 4.744 .003 -132.813 Std. Error 250.547 Beta -.530 .615 t Sig.

Table 4.7 shows the correlation between export and deposit. The correlation between export and deposit is 0.889 which indicates very strong relationship between them. The value of R2 is 0.789 means that for each one unit increase of export, the deposit increase to 0.789. Table 4.7.2 shows the regression coefficient between export and deposit for 2004 to 2011 is 0.019. It is the rate of changes export and deposit. And the value of coefficient is -132.813. That means the regression equation is: Y = --132.813 + 0.019 x where, y = deposit x = export

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Deposit and import


Table-4.8: Correlations between deposit and import DEPOSIT Pearson Correlation DEPOSIT Sig. (2-tailed) N Pearson Correlation IMPORTS Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 8 .944
**

IMPORTS 1 .944
**

.000 8 1

.000 8 8

Table-4.8.1: Regression between deposit and import Model R R Square Adjusted R Square Std. Error of the Estimate 1 .944
a

.892

.874

4934.992

Predictors: (Constant), DEPOSIT Table-4.8.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 DEPOSIT Dependent Variable: IMPORTS .365 .052 .944 7.025 .000 -5009.405 Std. Error 3168.531 Beta -1.581 .165 t Sig.

Table 4.8 shows the correlation between import and deposit. The correlation between import and deposit is 0.994 which indicates very strong relationship between them. The value of R2 is 0.892 means that for each one unit increase of import, the deposit increase to 0.892. Table 4.8.2 shows the regression coefficient between import and deposit for 2004 to 2011 is 0.365. It is the rate of changes import and deposit. And the value of coefficient is -5009.405. That means the regression equation is: Y = -5009.405 + .365x where, y = deposit x = import

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Deposit and investment


Table-4.9: Correlations between deposit and investment DEPOSIT Pearson Correlation DEPOSIT Sig. (2-tailed) N Pearson Correlation INVESTMENT Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). 8 .998
**

INVESTMENT 1 .998
**

.000 8 1

.000 8 8

Table-4.9.1: Regression between deposit and investment Model R R Square Adjusted R Square Std. Error of the Estimate 1 .998
a

.996

.995

333.593

Predictors: (Constant), DEPOSIT Table-4.9.2: Regression Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 DEPOSIT .135 .004 .998 38.447 .000 Dependent Variable: INVESTMENT 405.017 Std. Error 214.185 Beta 1.891 .108 t Sig.

Table 4.9 shows the correlation between investment and deposit. The correlation between investment and deposit is 0.998 which indicates very strong relationship between them. The value of R2 is 0.996 means that for each one unit increase of investment, the deposit increase to 0.996. Table 4.9.2 shows the regression coefficient between investment and deposit for 2004 to 2011 is 0.135. It is the rate of changes investment and the deposit. And the value of coefficient is 405.017. That means the regression equation is: Y = 405.017 + 0.135 x where, y = deposit x = investment

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Profit after tax and total asset


Table-4.10: Correlations between profit after tax and total asset P.A.T Pearson Correlation P.A.T Sig. (2-tailed) N Pearson Correlation Total Asset Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). Table-4.10.1: Regression between profit after tax and total asset Model R R Square Adjusted R Square Std. Error of the Estimate 1 .996
a

Total Asset 1 .996


**

.000 8 .996
**

8 1

.000 8 8

.993

.992

59.480

Predictors: (Constant), Total Asset

Table-4.10.2: Regression coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 Total Asset Dependent Variable: P.A.T .014 .000 .996 28.695 .000 -35.940 Std. Error 37.692 Beta -.954 .377 t Sig.

Table 4.10 shows the correlation between profit after tax and total asset. The correlation between profit after tax and total asset is 0.996 which indicates very strong relationship between them. The value of R2 is 0.993 means that for each one unit increase of profit after tax the total asset increase to 0.993. Table 4.2.2 shows the regression coefficient between profit after tax and total asset for 2004 to 2011 is 0.014. It is the rate of changes profit after tax and total asset. And the value of coefficient is -35.940. That means the regression equation is: Y = -35.940 + 0.014 x where, y = total asset x = profit after tax

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4.4 RATIO ANALYSIS


Ratio Cost to income ratio Capital adequacy ratio Credit deposit ratio Return on Investment Return on Asset Return on Equity Dividend Earnings per Share 2011 50.96% 11.60% 85% 12.41% 1.36% 17.90% 20% 5.15 2010 47.98% 12.07% 94% 9.00% 1.55% 18.95% 30% 5.05 2009 48.82% 12.45% 85% 12.30% 1.56% 19.19% 30% 3.94 2008 47.42% 12.76% 91% 12.61% 1.64% 22.88% 30% 2.95 2007 45.09% 12.28% 87% 11.64% 1.62% 23.83% 10% 1.87

Source: Annual report 2008 to 2011 of BRAC Bank Ltd.

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2007 2008 2009 2010 2011 cost to income ratio capital adequacy ratio credit deposit ratio return on investment return on asset return on equity dividend earning per share

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Cost to income ratio


The cost to income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact.

For BBL, in 2007 to 2009 the ratio was 45.09%, 47.42%, and 48.82% respectively. It indicates that cost is rising day by day. But in 2010 the ratio was 47.98%; it means the companys cost efficiency was very good in 2010s financial year. Eventually in 2011 the cost to income ratio found its consisting track, and the ratio is 50.96%.

Capital Adequacy Ratio


This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors. For BBL, core capital (tier I) includes paid-up capital, share premium account, statutory reserve, and retained earnings. Supplementary capital (tier II) includes general provision (on classified loans), preference share, and exchange equalization fund. The standard of capital adequacy ratio is 10%. But the banks capital adequacy ratio from 2007 to 2011 was 12.28%, 12.76%, 12.45%, 12.07%, and 11.60% respectively. So, we can say that the banks financial management is expert and efficient.

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Credit Deposit Ratio


A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. This number, also known as the LTD ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforeseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be. For BBL, the credit deposit ratio from 2007 to 2011 was 87%, 91%, 85%, 94% and 85% respectively. So, the banks performance is good. But in 2010 the bank highly used its deposit also faced liquidity problem during this year. But in overall the banks credit deposit ratio is efficient.

Return On Investment
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. For BBL, the return on investment from 2007 to 2011 was 11.64%, 12.61%, 12.30%, 9.00% and 12.41%. The return on investment is consistently good but in 2010 the return on investment was 9% that was poor performance for the bank due to economic recession.

Return On Asset
Return on assets (ROA) is a financial ratio that shows the percentage of profit that a company earns in relation to its overall resources. It is commonly defined as net income (or pretax profit) / total assets. ROA is known as a profitability or productivity ratio, because it provides information about management's performance in using the assets of the business to generate income. For BBL, the return on asset from 2007 to 2011 was 1.62%, 1.64%, 1.56%, 1.55% and 1.36%. The return on investment is consistently and good for banking sector.

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Return On Equity
ROE is equal to a fiscal year's net income (after preferred stock dividends but before common stock dividends) divided by total equity (excluding preferred shares), expressed as a percentage. As with many financial ratios, ROE is the best for using to compare companies in the same industry. For BBL, the return on equity from 2007 to 2011 was 23.83%, 22.88%, 19.19%, 18.95% and 17.90%. The return on equity is consistently going down. It indicates that the shareholders return decreases day by day due to crash of the capital market.

Dividend
Distribution of earnings to shareholders prorated by class of security and paid in the form of money, stock, scrip, or, rarely, company products or property. The amount is decided by the board of directors BBL declare mostly stock dividend in the Annual General Meeting (AGM). BBL tries to provide dividend in a consisting way. In 2011 the bank declared 20% stock dividend in the AGM.

Earnings Per Share


The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. For BBL, the Earning per Share (EPS) is good and consistently increasing. From 2007 to 2011 EPS was 1.87, 2.95, 3.94, 5.05 and 5.55. It indicates that the companys operation management is so efficient.

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4.5 SWOT ANALYSIS

Strengths
BRAC Bank has strong reputation which is top strength for the bank. Reputation is the key to achieve the companys vision. BRAC (NGO) involved with the bank, which also a top strength for BBL. BRAC bank has wide range of sponsors. Top management of BBL is so efficient, reliable and experienced thats the strong strength for the bank. BBL has interactive corporate culture. BBL mainly focused on SME sector and BBL also market leader of SME sector.

Weaknesses
Centralized decision making sometimes make the process lengthy. BRAC Bank has weak management for promotion. Its concentrating less on mass media coverage. Compare to other bank, BBL has low remuneration package for employees.
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Opportunities
BBL now diversifies its operation and banking activities, which bring it to a new banking edge? BBL has various strategic alliances which bring BBL to a new era of banking. BBL operates its business not only in the national territory but also beyond to the national territory to invent a new banking, which name is PROBASHI BANKING. Its a great opportunity to spread out its business.

Threats
Multinational bank is the huge threat for BBL also whole banking industry. This will grab market share from national territory bank. New local banks also a threat for BBL. In our country, political condition is so imbalance. In the near future political condition will be so instable. So, it will be great threat for BBL.

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4.6 SHARE HOLDING STRUCTURE

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CHAPTER

FINDINGS, RECOMMENDATION AND CONCLUSION

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CHAPTER 5
Findings Recommendations Conclusion

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5.1 FINDINGS
We can see the sources of fund of BBL that deposit is the main part of the fund. So we can say that deposit is the heart of BBL. The other particulars of the bank are increased with the increasing of deposit. For this reason in 2011 as deposit is increased all the particulars are increased. From the analysis of my study, we see that the development of BBLs every particulars with deposit is positive and the condition of the bank is good. From the analysis the following findings are presented:

The relationship between deposits and profit after tax is positive and high (0.995) which means that the growing rate of PAT also depends on deposits. The correlation between deposit and loan is positive and very strong, (0.998) implies that the growing rate of loan is very much high with the development of deposits.

The development of investment very strongly depends on deposits (0.998) The development of total asset very strongly depends on deposit (0.999) The relationship between deposit and export is also high and positive (0.889) The development of import also strongly depends on deposit (0.944) The relationship between import and export is also high and positive (0.964) The correlation between investment and total asset is very strong (0.999) The relationship between profit after tax and total asset positive and strong (0.996)

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5.2 RECOMMENDATION
The BRAC Bank should change the outlook of the Branch for attracting premium and supreme customer. The BBL Branch should include services like Foreign Exchange Services. The Branch is under staffed, thus for proper functioning, the branch needs more employees. L should provide an effective training program for the junior level officers as though they can perform their task efficiently. The remittance service in Rampura Branch has real good prospect, thus the bank should work actively so that it can attract more clients. The Branch should give a lot of emphasis on Cost Cutting techniques and proper record keeping. The salary package for each level of employees is not very competitive, thus it de-motivates the employees.
Developing motivational program and training program.

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5.3 CONCLUSION
In this age of modern civilization bank is playing its splendid role to keep to the economic development wheel moving. We can see lot of new commercial banks has been established in last few years and these banks have made this banking sector very competitive. The major task for banks, to survive in this competitive environment is by managing its assets and liabilities in an efficient way. BBL has a strong financial base and huge assets to meet up its liabilities which make this organization financially sound and solvent.

BRAC Bank promises to fulfill every possible Customer needs with high quality service and satisfaction. This success has resulted from the dedication, commitment & dynamic leadership of its management over the periods. To become market leader in providing banking services, introduction of sophisticated banking instruments i.e., online banking services, Internet banking, and ATM services is a demand of time. BRAC Bank is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure.

It was an honor for me that I have worked as an intern in a reputed organization like BRAC Bank Limited. The BBL is a bank that confirms the best service to the customers BRAC bank Limited is the fastest growing Bank in Bangladesh. By working in the customer service, the knowledge learnt would be helpful enough to sustain with the real organizational environment.

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BIBLIOGRAPHY
Annual Report of BRAC Bank Limited from 2007 to 2011. Books, Publications and Journals of BRAC Bank Limited Valuable discussion of supervisors during the period of internship Discussion with the branch staff during the period of internship http://en.wikipedia.org/wiki/BRAC_Bank http://www.bracbank.com.

http://www.bangladeshbank.org

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