Letter of Transmittal

Date: 06 Jan 2017

To: Mr. Shadrul Hassan Himel

Lecturer: Department of Marketing
Faculty of Business Administration
Subject: Submission of term paper on Analyzing Marketing Strategy of company Bank Asia

Dear Sir,
Here we are submitting our term paper on
Analyzing Marketing Strategy of company Bank Asia prescribed by you in your course. For
this Purpose, we have gone through internet, different books, articles, journals, of the respective
organizations and class lecture sheets for the relevant information of the assigned topic.

Please call us for any further information at your convenient time and place.

Sincerely Yours,

06 Jan 2017

Acknowledgement

At first we desire to express our deepest sense of gratitude of almighty God.

With profound regard we gratefully acknowledge our respected course lecturer Mr.
Shadrul Hassan Himel Lecturer of Marketing, Faculty of Business Administration for this
generous help and suggestion during preparation of the report.
We like to give thanks especially to our friends and many individuals, for their enthusiastic
encouragements and helps during the preparation of this report us by sharing ideas
regarding this subject and for their assistance in typing and proof reading this manuscript.

About Bank Asia

Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in
the society. The management of the Bank consists of a team led by senior bankers with decades
of experience in national and international markets. The senior management team is ably
supported by a group of professionals many of whom have exposure in the international market.
It set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first
in the banking history of Bangladesh. It again repeated the performance by acquiring the
Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.
In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public
Offering of the shares of the Bank, which was a record (55 times) in our capital market's history
and its shares commands respectable premium.
The asset and liability growth has been remarkable. Bank Asia has been actively participating in
the local money market as well as foreign currency market without exposing the Bank to
vulnerable positions. The Bank's investment in Treasury Bills and other securities went up
noticeably opening up opportunities for enhancing income in the context of a regime of gradual
interest rate decline.
Bank Asia Limited started its service with a vision to serve people with modern and innovative
banking products and services at affordable charge. Being parallel to the cutting edge technology
the Bank is offering online banking with added delivery channels like ATM, Tele-banking, SMS
and Net Banking. And as part of the bank's commitment to provide all modern and value added
banking service in keeping with the very best standard in a globalize world.

Vision, Mission & Core Values

Bank Asia is a third generation public limited commercial bank. It received the Certificate of
Incorporation on September 28, 1999 and came to operation on November 27, 1999. Now after 12

faithful years of dedicated and reliable services, Bank Asia has created an envious position for itself
among the leading banks of the country with an Asset base of TK. 117 billion, Deposit of TK 95 Billion
and 70+ outlets all over the country. But most importantly, the Bank has an unsurpassed legacy attached
with its image.

Vision

Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the new millennium,
reflecting the national dream. Our vision is to build a society where human dignity and human rights
receive the highest consideration along with reduction of poverty.
MISSION

To assist in bringing high quality service to our customers and to participate in the growth and
expansion of our national economy
To set high standards of integrity and bring total satisfaction to our clients, shareholders and
employees
To become the most sought after bank in the country, rendering technology driven innovative
services by our dedicated team of professionals
CORE VALUES

Place customer interest and satisfaction as first priority and provide customized banking products
and services
Value addition to the stakeholders through attaining excellence in banking operations
Maintain high ethical standard and transparency in dealings
Be a compliant institution through adhering to all regulatory requirements
Contribute significantly for the betterment of the society
Ensure higher degree of motivation and dignified working environment for our human capital and
respect optimal work-life balance
Committed to protect the environment and go green

To assist in bringing high quality service to their customers and to participate in the growth
and expansion of their national economy.
To become the most sought after bank in the country, rendering technology driven innovative
services by their dedicated team of professionals.
Bank Asia's vision is to have a poverty free Bangladesh in ctheirse of a generation in the new
millennium, reflecting the national dream. Their vision is to build a society where human
dignity and human rights receive the highest consideration along with reduction of poverty.
Bank Asia has been launched by a group of successful entrepreneurs with recognized standing
in the society. The management of the Bank consists of a team led by senior bankers with
decades of experience in national and international markets. The senior management team is
ably supported by a group of professionals many of whom have exposure in the international
market.
It set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka,
first in the banking history of Bangladesh. It again repeated the performance by acquiring the
Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.
In the year 2003 the Bank again came to the limelight with oversubscription of the Initial
Public Offering of the shares of the Bank, which was a record (55 times) in their capital
market's history and its shares commands respectable premium.
The asset and liability growth has been remarkable. Bank Asia has been actively participating
in the local money market as well as foreign currency market without exposing the Bank to
vulnerable positions. The Bank's investment in Treasury Bills and other securities went up
noticeably opening up opportunities for enhancing income in the context of a regime of
gradual interest rate decline.
Bank Asia Limited started its service with a vision to serve people with modern and
innovative banking products and services at affordable charge. Being parallel to the cutting

edge technology the Bank is offering online banking with added delivery channels like ATM,
Tele-banking, SMS and Net Banking. And as part of the bank's commitment to provide all
modern and value added banking service in keeping with the very best standard in a globalize
world.
COMPANY DESCRIPTION
Bank Asia has its prosperous past, glorious present, prospective future and under processing
projects and activities. Established as the first private sector bank fully owned by Bangladeshi
entrepreneurs, the members of the board of directors are creative businessmen and leading
industrialists of the country. The bank was opener of March 28, 1983 but the first branch at 48,
Dilkusha Commercial Area, Dhaka started commercial operation of March 23, 1983. The 2 nd
Branch was opened on 11 May 1983 at Khatungonj, Chittagong.
At present, BANK ASIA has been carrying on business through its 106 branches spread all
over the country. Besides, the Bank has drawn arrangement with 415 correspondents in 75
countries of the world as well as with 32 overseas Exchange Companies. BANK ASIA was
the first domestic bank to establish agency arrangement with the world famous western Union
in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the
expatriate Bangladeshi nationals. BANK ASIA was also the first among domestic banks to
introduce international Master Card in Bangladesh. In the meantime, BANK ASIA has also
introduced the Visa Card and Power Card. The Bank has in its use the latest information
technology services of SWIFT and REUTERS. BANK ASIA has been continuing its small
credit disbursement of collateral free agricultural loans among the poor farmers of Barindra
area in Rajshahi district for improving their lot. Alongside banking activities, BANK ASIA is
actively involved in sports and games as theyll as in various Socio-Cultural activities. Up to
September 2006, the total number of workforce of BANK ASIA stood at 2239, which include
1989 officers and executives and 550 staff.

Marketing mix of Bank Asia

Marketing for financial services pose distinctive challenges to marketers because services are
intangible, inseparable and cannot be inventoried. An expanded marketing mix is required to
fully answer the differences between product marketing and marketing for financial services.
The expanded marketing mix aims to capture the distinctive nature of financial services.

Products & services of BANK ASIA

Deposit products: current deposit, saving deposit, term deposit, foreign currency
deposit.
They offer
MASTERCARD LOCAL (Gold & Silver)
VISA LOCAL (Gold & Classic)
VISA DUAL (Gold & Classic)
VISA INTERNATIONAL (Gold & Classic)
VISA MINI (Classic)

MAJOR FEATURES:
Dual currency credit card: Local and foreign currency in same plastic.
Card Cheque: There are some areas where the customer cannot make payment through cards like
house rent, education fees etc. Bank Asia credit card cheque is very much convenient to meet these
purposes

Double Credit Shield: We introduced double credit shield program for the valued credit
cardholders. Under double shield plan in the unfortunate event of death or permanent total disability
of the cardholder, cardholder nominee or cardholder shall receive Tk. 50,000 for Silver/Classic
cardholder and Tk. 1,00,000 for Gold card in addition to the auto settlement of entire dues on the
credit card.
Free SMS service: A cardholder is able to get information about cards outstanding and different
value added services over cell phone through SMS service.
E-statement: A Bank Asia cardholder has facilities to get monthly statement over e -mail anywhere
in the world.
Reward Points: A cardholders accumulates reward points against purchase
24 hours call center: Our enthusiastic customer care agents are ready to attend customers query
round the clock through our call center
Soft turn: Bank Asia Cards has offered the employees of MNC, FI and renowned corporate houses to
transfer their existing other bank credit card outstanding to Bank Asia MasterCard or VISA credit card.
Easy buy: Under this scheme Bank Asia cards have flexibility to pay in installment basis on any

purchase with the credit card.

SMS Alert Service: Cardholders are being same SMS upon approval of each transaction

On-line Banking:
All branches under online banking system will be able to do banking practices using a
common server (which is centralized) from where only the branches will be able to enter using
a common password.
Internet Banking:
Any one including any client or any branch from any direction will be able to enter in the
system to do banking transactions.
Internet Banking Services
Check account balance
Take print out of account statement for a particular period
Transfer fund within your own account
Make payment of mobile phone bill
Recharge your mobile phone as well as others from your account
Enquire foreign exchange rate
Enquire currency exchange rates.
Acquire information on all our products.
Every transaction report will be sent to clients e-mail account.
Can change the password, pin code and respective

mobile number (For All Mobile

Operator's).
IT System of BANK ASIA
The Bank Asia has a particular data base system. And they use to work in HPs proprietary
Non Stop Kernel DBMS which is handled by Non Stop SQL.
HP Proprietary Non Stop KERNEL
The system software is HP Proprietary Non Stop KERNEL and includes the database as part
of the operation system theirby elimination the layer typically fund in most Database

Management Systems (DBMS). The Database functionalities are handled by NONSTOP SQL,
which is simply a different operational session for the operating system. The proprietary
nature of the system software arguably enhances system security.
Operating system is HPs proprietary Non Stop DBMS handled by Non Stop SQL. The system
software treats all its hardware rest heiress as objects and is thus entirely message driven. This
then allows application software to be deployed using client/server architecture providing
shared data processing bettheyen the central server and the user workstation. The central
trading system resides in the Stock Exchange premises, which is running 24 hours in a day &
365 days in a year

Subject method
This part is on the information technologies those BANK ASIA use for their banking operation.
Now a day IT is very important for all the companies and banks to compete with others. So they
decide to make their paper on IT system of BANK ASIA.
Globally the developments in information & communication technologies (ICT) have created a
new instance in the Banking sector. For this, BANK ASIA also uses hi-tech operation and
application softwares for their banking operations, trading and customer function supervision. In
this paper they are going to discuss about their major software of the bank. Here in this subject
method they are giving short summary of the whole report they are discussing about:
Stelar-Core Banking Software (CBS) is an integrated retail banking system that provides a
complete solution for large and medium banks. Its main suite of functional module covers
Savings & Checking accounts, Loans and Deposits, Remittances and Trade Finance, which
integrates seamlessly with the back office General Ledger, providing a cost effective solution for
multi branch operations. A fully functional ATM module and e-Banking facility allow remote
banking in areas where communication facilities are not available. Its architecture and design

offers greater flexibility in customizing to individual variations without major code changes and
makes addition of new features an easy task.
Price
The pricing component plays twin roles for Bank Asia in the sense that it must be able to first
attract customers to purchase the service and also generate revenue for Bank Asia. There are five
main factors that influence pricing decisions, namely, profit maximization,

market-share

maximization, survival, social considerations and personal objectives.

While pricing strategy is highly dynamic for other products and services, pricing for current
account services have become rather static in recent years. Most banks do not require any fees to
set up a current account. Banks instead rely on the money that floats in the interval when they are
deposited to when they are spent in order to profit from current accounts.
It is unlikely that any increases in interest rates would be able to attract customers to open up new
current accounts with Bank Asia.

Place
The place element involves delivering the product element to customers through appropriate
methods and delivery channels. Delivery may involve both physical and electronic channels.
Failure to make a service product readily available to customers would guarantee its failure
regardless of how good the service product is.

Promotion
The promotion element relies on effective communications to bring awareness in the market of the
service products offered by Bank Asia. The three objectives of the promotion element are to gain
the attention of customers, provide additional information and persuade customers to purchase the
product. Advertising is mass, paid communication that is used to transmit information, develop
attitudes and induce some form of response on the part of the audience.
The choice of media that would be utilized includes newspapers, magazines, outdoor advertising
and the internet. A sales promotion will also be carried during the first three weeks after the launch
date to help stimulate customer purchase and the effectiveness of intermediaries. Other
promotional materials include press releases, posters and brochures.

People
Despite technological advances, many financial services still require direct interaction between
customers and bank employees. The nature of these interactions strongly influences how customers
perceive service quality. This is particularly true for financial services as employees are often the
first line of contact with the customer.
Due to the importance of this element in the marketing mix, special attention needs to be given to
the training of employees concerning the new current account package. The prepaid card concept
also requires some serious attention as its aim is to show Bank Asias change of stance concerning
the psychology of spending.
Training should only be given to bank staffs that are directly involved in the new current account
package. However, back office staff must also be formally notified concerning this new current
account package to ensure that the entire organization have a coherent understanding on the banks
products and services. Besides that, training of IT personnel must also be stressed as new
information systems may have to be put in place before the launch of the new product.

Physical Evidence

It is generally recognized that physical evidence can be subsidized into two components peripheral
evidence which can be possessed by the consumer but has little independent value and essential
evidence, which cannot be possessed by the consumer but has independent value. The peripheral
evidence is the prepaid card itself while the essential evidence includes bank branches, cash
machines, posters and brochures.

Process

The process element focuses on the mechanisms by which the service is delivered, includ ing
business policies for service provision, procedures, degree of mechanization etc. It is imperative

that the policies and procedures are written and tested before the launch of the new current account
package.
Bank personnel are to conduct a test to determine how efficient and effective front line staffs are
at explaining the new current account package and setting up new current accounts. A step by step
guide on how to set up a new current account and prepaid card system is to be issued to all front
line staff to ensure that no confusion is to occur during the critical launch date.
Besides that, front line staff should also be constantly monitored to ensure that the delivery of
services occur smoothly. Customer feedback and complaints should be welcomed as they would
provide the input needed to continuously improve service delivery and customer satisfaction.

Bank Asia Interest Rates

Following are the interest rates of deposit products customers, they offer different rates on different product.

Type

Interest Rate

Savings Account
Avg. Balance below Tk. 1 Lac

3.25%

Avg. Balance Tk. 1 Lac & above but below Tk. 1.00 Crore

3.25%

Avg. Balance Tk. 1.00 Crore and above

4.00%

Special Notice Deposit (SND)

Avg. balance below Tk. 1 crore

2.50%

Avg. balance Tk. 1 crore but below Tk. 25 crore

3.00%

Avg. balance Tk. 25 crore but below Tk. 50 crore

3.50%

Avg. balance Tk. 50 crore but below Tk. 100 crore

5.50%

Avg. balance Tk. 100 crore and above

5.50%

For IPO Fund

3.00%

Fixed Deposit Receipt (FDR)

1 month tenure (Below Tk.1 crore)

3.00%

1 month tenure (Taka 1 crore but below 5 crore)

3.00%

1 month tenure (Taka 5 crore and above)

3.00%

2 months tenure (below 2 crore)

3.00%

2 month tenure (Taka 2 crore and above)

3.00%

3 months tenure (below 1 crore)

5.00%

3 month tenure (Taka 1 crore but below 5 crore)

5.00%

3 month tenure (Taka 5 crore and above)

5.00%

6 months tenure (below 1 crore)

5.00%

6 months tenure (Taka 1 crore and above)

5.00%

1 year tenure (below 1 crore)

5.50%

1 year tenure (Taka 1 crore and above)

5.50%

2 year tenure (below 1 crore)

6.00%

2 year tenure (Taka 1 crore and above)

6.00%

3 year tenure (below 1 crore)

6.00%

3 year tenure (Taka 1 crore and above)

6.00%

Interest Rate on SME (Small), Micro & Cottage Enterprise

Rate
Type
Mid Rate

Maximum Rate

a) Shubidha- unsecured trading (Term Loan)

13.50%

15.00%

b) Sristi Unsecured Manufacturing (Term Loan)

13.50%

15.00%

c) Shofol- unsecured service (Term Loan)

13.50%

15.00%

d) Shondhi- Secured Trading ( Term Loan)

13.50%

15.00%

e) Shombridhi- Secured Manufacturing(Term Loan)

13.50%

15.00%

f) Sheba Secured Service (Term Loan)

13.50%

15.00%

i) Trading, Manufacturing & Service

13.50%

15.00%

ii) Women Entrepreneurs

13.50%

15.00%

h) Utshob-Seasonal

13.50%

15.00%

i) Subarno- Women Entrepreneurs (Term Loan)

10.00%

10.00%

g) Shamadhan- Overdraft

Rate of Interest on Loans and Advances

Type

Mid Rate Maximum Rate

Agricultural & Rural Credit

9.00%

10.00%

Term Loan to Industries

11.50%

13.00%

Working Capital to Industries

10.50%

12.00%

Trade Finance for Rice, Wheat, Edible Oil, Pulse, Peas, Onion, Dates & Sugar

11.00%

12.50%

Other Trade Finance

11.50%

13.00%

Export Credit

7.00%

7.00%

Other Commercial Lending

10.50%

12.00%

Housing -Commercial

11.00%

12.50%

a) Unsecured Personal Loan

12.50%

13.00%

b) Consumer Durable Loan

12.50%

13.00%

c) Auto Loan

12.00%

13.00%

d) Home Loan

11.50%

13.00%

e) Loan to Professional

12.50%

13.00%

f) Senior Citizen Support

12.50%

13.00%

Short Term Credit to corporate

9.50%

11.00%

Other Medium & Long Term to corporate

13.50%

15.00%

Loans to Non-Banking Financial Institution

11.00%

12.50%

Consumer Credit:

Conclusion
As a ubiquitous financial institution in todays globalize economy banking sector deals with the
most insightful part of the economy.
As a third generation bank, Bank Asia has been operating successfully in the banking arena for
nine years. The assets position of Bank Asia Limited is quite satisfactory & it has requisite
strength & opportunity to sustain. It is committed to provide high quality financial
services/products to contribute to the growth of G.D.P. of the country through stimulating trade
& commerce, accelerating the pace of industrialization, boosting up export, creating employment
opportunity for the educated youth, poverty alleviation, raising standard of living of limited
income group and over all sustainable socio-economic development of the country.
In the upcoming days, for maintaining the accelerated pace of business growth and operating
performance, the bank will have to invest for the development of HR quality and research, IT
infrastructure etc.
Credit management of the bank is very important to achieve the desired objective of the bank
because the major part of total revenue of the bank is generated from it and a huge risk is related
with it. Most importantly, the existence of the bank is depending on the prudent management of
its credit portfolio. The failure of a Commercial Bank is usually associated with the problem in
credit portfolio and is less often the result of shrinkage in the value of other assets. As such credit
portfolio not only features in the assets structure of the Bank, it is critically important to the
success of the Bank also.
Bank Asia, started its journey in 1999 for A Better Tomorrow Its friendly and congenial
environment, dedication to service and ability to prove equality, at low cost, with high efficiency
has been able to develop a reputation in market. If all the efforts those were put forward in past
can be employed again with renovation and increased integrity, then we can hope that it will not
only be able to build a better Tomorrow for itself but also for the whole nation that will lead us
to build a developed and civilized nation.

Severe competition only way to be the front line in the race is to go with learning process and
adoption of latest technology. This will help us to read the environment properly and adjust in
the changed environment.

RECOMMENDATIONS

Bank Asia Ltd has to take up some innovative as well as cost effective measures to overcome its
existing problems. I would like to present some recommendations regarding the overall condition
especially the General Banking policy as it is related to my report topic. I think the following
short listed measures can boost its performance in marketing department and the Bank as well:

Customer service is related to do work accurately and speedy and energetic way.

Providing service at once when customer need.

Customer service is the core concern of general banking. A bank must satisfy its
customer by providing best facilities and advantages.

It sector is not well structured; it must be developed.

Take efficient and effective initiatives to raise deposit. Like Introduce new accounts to
acquire more deposit. They also offer diversified investment scheme, which leads to
increase deposits

Entrepreneurship lending should be given due emphasis.

Increase skill manpower by train up program and also create professionalism about the
bank personnel.

Take initiative to introduce scholarship program in private University level.

Bank Asia can make a structure of pay daily interest on savings account if possible.

Increase promotional activities for growth and expansion.

Restructure remuneration or salary package for the motivation of existing employees and
for the qualified peoples who wants to make banking professional life.

KYC profile is most important in successful banking. Bank Asia maintains KYC profile.

Most of the customer faces difficulty to fill the account opening form.

When a customer comes to close an account they get their money after few days.
Nowadays it is not for a commercial bank.

The space is not enough for the banking activity; it should be increased.

Canteen facility is lower than employees. It should take necessary steps to increase
canteen facility.

References

http://www.educarnival.com/report-on-bank-asia- limited/
https://www.scribd.com/document/201986191/Bank-Asia
www.slideshare.net/search/slideshow?searchfrom=header&q=marketing+strategy+of+company+
of+bank+asia
http://www.bankasia-bd.com/home/saving_account