Chapter 1

Introduction & Background of

the Study

1.1 Origin of the Report:

As a prerequisite of obtaining Master of Business Administration (MBA) degree from
Faculty of Business Studies, Dhaka City College, every student has to go through an
internship program. To fulfill the internship requirement I am being employed in BASIC
Bank Limited, a well reputed specialized commercial bank. Under the supervision of
Mr. Mohammad Masudur Rahman, Assistant professor, Dept. of Marketing. I have been
assigned to prepare an internship report “A Study on Marketing Mix of Basic Bank
Limited.”

This report is written to comply with that instruction.

1.2 Rationale of the Study:

Banks have of course a vital role in promoting and accelerating the economic
development process as per the demand of time through the implementation of finance
for industrial & agricultural project, domestic and foreign trade and allocating the fund to
various off-firm employment and self-employment generation projects. Focusing the light
and considering the every pros and cons on available statistical data it has been
apparently accepted that BASIC Bank Ltd. has continued to register its steady progress in
the field of deposits, advances & foreign exchange business. In view of the sluggish
nature of the economic activities over the years the deposit performance of BASIC Bank
Ltd is more or less satisfactory.

1
The low rate of economic growth, high rate of unemployment, illiteracy, growth rate of
population, low rate of credit recovery etc. are the impediment factor of economic
development of a country. Despite of this obstructers BASIC Bank Ltd. has shown a
mediocre performance.

1.3 Objectives of the Study

General objective:

 The study is intended for providing me invaluable practical knowledge about

banking operation and marketing mix of a reputed bank in Bangladesh. The
general objective is to prepare the report to acquire practical knowledge about the
Banking Sector

Specific objective:
 To acquire knowledge and find the relationship between practical and theoretical
background.
 To analysis the marketing mix of BASIC Bank Limited.
 Study different Products and services of Basic Bank Ltd.
 To examine the operational procedure of BASIC Bank Limited.
 To find any lacking of BASIC Bank Ltd on marketing mix.
 How Basic Bank can improve its quality of service to attract clientele from
different sectors of society.
 To have an insight of customer attitude towards the quality of services, products,
etc of the Basic Bank.
 To recommend the strategies that Basic Bank can adopt to make its Marketing
Mix more effective to enhance its performance.

2
1.4 Scope of the Study

In Bangladesh the financial sector is one of the most established area. In the process of
forming a good economic system, banks play a vital role. For this reason I have chosen
BASIC BANK Ltd. to complete my Internship. There I worked for two months as an
internee and were paced under general banking, loans and advances and foreign exchange
department. Therefore this report will cover the above aspect of the work and also the
marketing mix strategies adopted by the bank to improve the performance of the Bank in
future.

1.5 Methodology of the Study

This report has been prepared on the basis of experience gathered, during the period of
internship. For preparing this report I have also got the information from annual report
and website of the BASIC Bank Ltd and surveying people with questionnaire.

1.6 Sources of Data:

Primary Sources

 Face to face conversation with the respective officers and stuffs of the
branch and head office.
 Practical work experience in the different desk of the department of the
branch.
 Face to face conversation with clients visited the branch.

Secondary Sources

 Daily diary (containing my activities of practical orientation in

BASIC Bank Ltd.)

3
  Various publications on bank.
 Website of BASIC Bank Ltd.
 Website of Bangladesh Bank.
 Different procedure manual published by BASIC Bank Ltd.

1.7 Data Collection Procedure

Primary Sources

Target Sources: The clients of BASIC Bank Limited are the target sources. Device of
Collecting Process: I made a questionnaire to collect the needed data. There were five
scale points to answer. As strongly agree, strongly disagree etc.
Population: The clients of BASIC Bank Limited were the population.
Sample size: The sample size was total 100 clients of BASIC Bank Limited, Tanbazar
branch.
Sampling technique: I used “Judgmental Technique” to collect the necessary data.

Secondary Sources:

 Annual report
 Publications of Bangladesh Bank
 Various books
 News articles
 Internet
 Website of the Bank.

4
1.8 Limitations of the Study

I have tried to find out the relationship between our theoretical knowledge and practical
implication.

The report was completed under the following constraints

 Difficulty in gaining accesses to accounts of the bank.

 Without their own employee it is very much difficult to collect
relevant data.
 The number of branches of BASIC Bank is limited. As such they can’t
provide services to the people of rural areas.
 In some cases verifications of data were become tough.
 Unavailability of necessary documents.
 The bank has not any Debit and Credit card.
 The online service of this bank is very much limited.
 As the department specified a short span of time, sufficient time could
not spend to make on in-depth study on such an important issue.

5
 Chapter 2

Organizational Profile of
BASIC Bank Ltd

2.1 Introduction

The Bank of Bangladesh Small Industries & Commerce Limited (BASIC) established as
Banking Company under the Companies Act 1993 launched its operation January 21,
1989. At the outset, the Bank started as a joint venture enterprise of the Bangladesh
Credit Commerce (BCC) foundation with 70 percent shares and Government of
Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being non
functional following the closure of the BCCI, the Government of Bangladesh took over
100 percent ownership of the Bank on 4 June, 1992. The bank was established as the
policy makers of the country felt the urgency for a bank in the private sector for financing
Small scale Industries (SSI). BASIC is unique in its objectives. It is a blend of
development and Commercial Banks. The memorandum and Articles of Association of
the Bank stipulate that 50% of Loan able funds shall be invested in Small and Cottage
industries Sector.

Bangladesh Small Industries and Commerce Bank Limited, popularly known as BASIC
Bank, are state-owned. However, it is not a nationalized Bank. It is a bank-company and
operates on the lines of a private bank. The very name Bangladesh Small Industries and
Commerce Bank Limited is indicative of the nature of the bank. It is a blend of
development and commercial banks. The Memorandum and Articles of Association of the
bank stipulate that 50 percent of loan able funds shall be invested in small and cottage
industries sector. Thus the bank’s priority remains with promoting and financing

6
development of small-scale industries in the country. According to Industrial Policy 1999,
“Industry” is broadly defined to include both manufacturing and service sectors.
“Manufacturing Industry” includes all production, processing, and assembling activities
as well as repairing and reconditioning of processed goods. “Service Industry” includes
those service-oriented activities, which involve significant use of equipment or fixed
assets. Service Industry includes hotel, hospital, clinic, and IT based enterprises. “Small
Industry” means enterprise employing fewer than 50 workers and / or with a fixed capital
investment of less than Tk. 100 million. “Cottage Industry” covers household-based units
operated mainly with family labor. Generally, fixed assets and operating costs together do
not exceed more than Tk. 0.5 million per unit of cottage industry. BASIC collects fund
from deposits from the members of the public, borrowing and shareholders’ equity.

2.2 BASIC Bank at a Glance:

Name BASIC Bank Limited

Date of incorporation August 2, 1988
Date of inauguration of January 21, 1989
operation
Registered office Bana Shilpa Bhaban
73, Motijeel Commercial Area
Dhaka-1000, Bangladesh.
Head Office Sena Kalyan Bhaban(6th floor)
195, , Motijeel Commercial Area
Dhaka-1000, Bangladesh.
Logo

Name of the chairman of the Mr. Sheikh Abdul Hai Bachhu

Board
Name of Managing Director
Number of Branches
Number of employees
Services provided
Paid up capital
Mr. Kazi Faqurul Islam
62 (up to 2012)
1657 (up to 2012)
Deposit scheme, Credit facility and foreign
exchange services
Taka 2946.98 million

7
 Profit after tax and Taka 27.89 million (2012)
provision
Ownership Government of Bangladesh (100%)
Banking software used CASTLETM
Technology used Member of SWIFT
E-Mail basicho@citechco.net
Website www.basicbanklimited.com
SWIFT BKSIBDDH

2.3 Functions of BASIC Bank Ltd

The Banks offers-

 Term Loans to industries especially to Small-Scale enterprise.

 Fully fledged commercial banking Service including collection of deposit, short
term trade finance, Working capital finance in processing a manufacturing units
and facilitating international trade.

 Micro Credit to the urban poor trough Linkage with NGOs with a view to
facilitating their access to the formal financial market for the mobilization of
resources.

 Financing & Technical support to Small Scale Industries (SSI) in order to enable
them to run their enterprises successfully.

 Financing in import and export business like other commercial banks.

 General Banking facilities like CD, FDR, SB, STD, BCD, FCA etc. are available.
Provides loans on easy terms and conditions.

 It creates loan deposit.

 The bank invest it fund into profitable sector.

8
  The bank is doing the transaction of bill of exchange, Cheque etc. on behalf of the
clients. BASIC Bank Ltd assists in the Foreign Exchange by issuing Letter of
Credit.

 The bank insures the securities of valuable documents of clients.

 It brings the increasing power of dimension of transaction.

Above all, BASIC Bank Limited helps the businessmen financially by giving
discount facility for bill of exchange and by providing the facility of Letter of
Guarantee. To establish linkage with other institution which are engaged in financing
micro credit to little organization.

2.4 Vision:
Ensuring the highest standard of client services through best application of latest,
information technology, making contribution to national economy, and being
established as a front ranking bank.

2.5 Mission

 We aim to come as one of the leading banks in the country.

 We intend to meet the needs of clients and enhance profitability.
 We aim to ensure competitive advantage by upgrading banking technology and
information system.
 We intend to help small and cottage industries sector
 We intend to plant more important role in economic growth of the country.

9
2.6 Corporate Strategy

 Financing establishment of small units of industries and business and

facilitates their growth.
 Small business sheet size composed of quality assets.
 Steady and sustainable growth.
 Loan sanction to small and medium recognized company.
 Serving better service to the customers.

2.7 Organizational Goals

1. To undertake project promotion to identify profitable areas of investment.

2. To search for newer avenues for investment and develop new products to suit
new needs.
3. To expansion of the bank and increase the coverage along the whole country.
4. To provide better service to the customer and lead as a better service provider
bank in Bangladesh.
5. To establish linkage with other institutions which are engaged in financing
micro enterprises.
6. To established linkage with other banks of Bangladesh and foreign banks.

2.8 Corporate Culture of BASIC Bank Ltd:

BASIC Bank is one of the most disciplined banks with a distinctive corporate culture.
The bank believes in shared meaning, shared understanding and shared sense making.
People can see and understand events, activities, objects and situation in a distinctive
way. They mould their manners and etiquette, character individually to suit the purpose of
the bank and the needs of the customers who are of paramount importance to us. The
people in the bank see themselves as a tight knit team/family that believes in working

10
together for growth. The corporate culture the bank belongs has not been imposed; it has
rather been achieved through its corporate conduct.

2.9 Organizational structure of BASIC Bank Ltd:

To achieve its organizational goals, the Bank conducts its operations in accordance with
the major policy guidelines laid down by the Board of Directors, the highest policy
making body. The management looks after the day-to-day operation of the Bank.

A. Board of Directors:

As stated earlier the Government holds 100 percent ownership of the Bank. All the
Directors of the Board are appointed the Government of Bangladesh. The Secretary of the
Ministry of Industries is the chairman of the Bank. Other Directors of the Bank are high
Government and Central Bank executives.
The Managing Director is an ex-officio member of the Board of Directors. There are at
present 7 Directors including the Managing Director.

B. Management:
The Managing Director heads the management. He is assisted by the two General
Managers and Departmental Heads in the Head Office. BASIC is different in respect of
hierarchical structure from other banks in that it is much more vertically integrated as far
as reporting to the Chief Executive is concerned. The Branch Managers of the Bank
report directly to the Managing Director and, for functional purposes, to the heads of
Departments. Consequently, quick decision making in disposal of cases is ensured.

11
The overall organizational structure of BASIC Bank Ltd can be depict using the
following flow chart:

Chairman

Director Director Director Director Director

Managing
Director
Company Sectary

General
Manager
Company Auditor

Deputy General
Convener
Manager

Assistant General Member

Manager

Member
Manager

Asst. Manager

Officer

Assistant Officer

Staff / Others

12
 Chapter 3

Conceptual Framework

3.1 Concepts Related to Marketing:

Marketing is one of the major sectors for an organization which help the organization to reach to
the goal effectively and efficiently. It is the process by companies creates value for customers and
builds strong customer relationships in order to capture value from customers in return.In
achieving the business goal organization have to identify their target customers groups to which
they provide the products. For this, organization screen out their potential customers group
through

 Market Segmentation – The process of dividing a market into distinct groups of

buyers with different needs, characteristics or behavior.

 Target Marketing - The process of evaluating each market segment’s attractiveness

and selecting one or more segments to enter.

 Market Positioning - Occupying a clear, distinctive and desirable place relative to

competing products in the minds of target customers.
In achieving the target effectively marketing tools are used to provide the products to the
customers. Marketing tools is known as marketing mix or 4ps. The marketing mix is
probably the most famous phrase in marketing. Marketing decisions generally fall into
the following 7 controllable categories:
1. Product
2. Price
3. Place (distribution)
4. Promotion
5. People
6. Process

13
 7. Physical evidence

"Marketing mix" is a framework which acts as a guideline for marketers to implement a

marketing concept. It consists of a set of major decision areas that a company needs to manage in
order to at least satisfy consumer needs.

According to Kotler Armstrong, the marketing mix is a set of "controllable tactical marketing
tools [product, price, place, promotion] that the firm blends to produce the response it wants in
the target market". The marketing mix consists of everything the firm can do to influence the
demand for its product.

3.2 Origin of Marketing Mix

The term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix. Borden began using the term in his teaching in
the late 1940's after James Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product planning,
pricing, branding, distribution channels, personal selling, advertising, promotions,
packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome
McCarthy later grouped these ingredients into the four categories that today are known as
the 4 P's of marketing, depicted below: These four P's are the parameters that the
marketing manager can control, subject to the internal and external constraints of the
marketing environment. The goal is to make decisions that center the four P's on the
customers in the target market in order to create perceived value and generate a positive
response. The traditional marketing mix contains four major elements, the "4-Ps of
marketing". As defined by Kotler (1999):

Product: "Anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. In includes physical ob-jects, services,
persons, places, organizations and ideas."

Price: "The amount of money charged for a product or service, or the sum of the values that
consumers exchange for the benefits of having or using the product or service."

14
 Place: "All the company activities that make the product or service available to target
customers."

Promotion: "Activities that communicate the product or service and its merits to target customers
and persuade them to buy."

3.3 7P’s in Details:

Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services

Promotion Price
Advertising List Price
Personal Selling Discount
Sales Promotion Marketing Allowance
Public relation Mix Payment Period
Returns

Place
Channels
Coverage
Assortments
Location
Inventory
Transportation
People Logistics Physical
evidence
Employee
Customers Building
Stuffs Furniture
Machineries

Process
Flow of activities
Standardization
Customization
Number of steps
Simplicity
Customer
involvement
15
Product:

The product is the most important aspect of the marketing mix. Products have both tangible and
intangible benefits. Tangible benefits include benefits which can be measured such as the top
speed of a car. Intangible benefits are benefits that cannot be measured such as the enjoyment of
the customer will get from the product.

Exactly what product or service are you going to sell to this market? Define it in terms of what it
does for your customer. How does it help your customer to achieve, avoid or preserve something?
You must be clear about the benefit you offer and how the customer's life or work will be
improved if he or she buys what you sell.

Here are some examples of the product decisions to be made:

 Brand name
 Functionality
 Styling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty
 Accessories and services

Price:
The amount of money customers have to pay to obtain the product. Many things
influence prices, including the number of suppliers, the number of customers, and the
availability of the product.
Effective pricing for a product is very much important to keep current customers and
potential customers. If the price is too high consumers will avoid the product as they will
believe it to be too expensive yet if the product is priced too low they may believe that
there is something wrong with the product for it to be so cheap. But in luxuries or
fashionable products or in case of reputed brand product value pricing is important. So in
here extra price should be charged for their values which differentiate it from others

16
related products. In this case this statement the higher the price, the more you sell will
be effective. So pricing of products should be taken very carefully so that customers can
measure price with their expected quality.

Exactly how much are you going to charge for your product or service, and on what basis? How
are you going to price it to sell at retail? How are you going to sell it at wholesale? How are you
going to charge for volume discounts? Is your price correct based on your costs and the prices of
your competitors?

Some examples of pricing decisions to be made include:

 Pricing strategy (skim, penetration, etc.)

 Suggested retail price
 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination

Place:

Company activities that make the product available to target consumers. Getting the
product to the customer as quickly and conveniently as possible is an essential aspect of
marketing mix. The place is not where is located your business but where our customers
are. Distribution is about getting the products to the customer. Some examples of distribution
decisions include:

 Distribution channels
 Market coverage (inclusive, selective, or exclusive distribution)
 Specific channel members
 Inventory management
 Warehousing
 Distribution centers

17
  Order processing
 Transportation
 Reverse logistics

In consumer marketing channels we have to consider three main distribution channels.

 Selling to the customers

 Selling to the retailers
 Selling to the wholesalers.

Promotion:
Promotion includes all the activities designed to bring a company’s goods or services to the
favorable attention of customers. That means the steps or activities that communicate the merits
of the products and persuade target customers to buy it.

It represents the various aspects of marketing communication, that is, the communication of
information about the product with the goal of generating a positive customer response.
Marketing communication decisions include:

 Promotional strategy (push, pull, etc.)

 Advertising
 Personal selling & sales force
 Sales promotions
 Public relations & publicity
 Marketing communications budget

Physical Evidence: The environments in which the reference and information service are
delivered that performance and communication of the service.

Process: The procedure mechanisms and flow of the activity by which the reference and
information service are acquired.

18
People: All human action who plays a part in reference and information services delivery namely
the librating personnel.

3.4 Marketing for Banks

Marketing is a total system of business activities designed to Plan, Price, Promotion and
distribution satisfying goods and services to present and potential customers. According to the
official definition of the American Marketing Association Marketing is the performance of
Business activities that direct the flow of goods and services from producer to customer or user.

The concept of Banks Marketing has been defined by various Banks Marketers as that part of
management activity that seeks to direct the flow of banking service profitability to selected
customers. The adoption of the marketing concept will recognize that Banks Customers are
changing in terms of their wants, needs; desires, expectations, and problems Banks must define
these in explicit terms and then evaluate their offering in customer’s terms. That is satisfying
customers’ needs at a profit to the Banks.

3.5 Marketing Mix Adopted by the Banks

Marketing mix is the mixture of controllable marketing variables that the firm uses to
pursue the sought level of sales in the target market.

We can say that the 7P’s are interrelated and must be blended into one integrated whole to
satisfy some target markets needs and performances. So, marketing mix is a set of
product, price, promotion, place physical evidence, process and people which are
interrelated.

3.6 The Banking Product:

The products of Banks are essentially services. Any satisfaction the customer gets from the
performance of the service rather than from the ownership of goods. Banks are in the Business of
marketing cash security, cash accessibility, monetary transfers and time to enable customers
wants to be satisfied to day without waiting until tomorrow when their own savings are higher.
So, Banking product means services, which are able to satisfy the present and potential
customers. Banks offer the following services.

Deposits

1. Current Account
2. Saving Account
3. Short term deposit
4. Fixed deposit receipt
5. Ajibon pension scheme
6. Double benefit scheme
7. Mashik munafa prakalpa
8. Special savings scheme

19
Credit facilities

1. Cash credit (Hypo)

2. Project Loan
3. Working capital loan
4. Export loan
5. Commercial loan
6. Small and Cottage industry loan
7. Lease finance
8. Staff loan
9. Various credit scheme

Foreign Service (Export, Import)

Banks Remittance (DD, TT)

Product Strategy:

Customer Existing New

Product

Existing Market Penetration Market Development

New Service/ Product Development Diversification

There are four alternative planning product strategies.

Market Penetration:

Offering more existing service to existing customer or client, that is market penetration Banks are
offering more service to existing customers.

Market development:

Offering more existing service to new client that is market development tries to attention new
client.

Service/ Product Development:

Development New services/ Products to existing customer what is service/ product development.
Banks are following this strategy.

20
Diversification:

Develop new service for new customers, that is, diversification. Bank has more diversify products
to new customer.

The Banking Price:

Banks interest rate means Banking Price. Price is important since it represents the only element of
marketing mix that creates revenue. The Banking system does not in fact price all its services.
Since some are offered free to customers. The most important prices in the Banking system relate
to interest rates. The government controls basic interest rates.

BANKS provides various interests to deposits and receiving interest from various creditors which
are showed in the table:

The Banking Promotion:

The term promotion is used to refer to the use of persuasive information which in conjunction
with other elements of marketing mix, relates to the target market. The Banks has to decide how
information about the organization and its services will be disseminated. Four elements of the
marketing communications mix are generally recognized.

Place (The Banking channel of distribution):

Channel of distribution performs all of the activities to move a product and its title from
production to consumption. Some private Banks Ltd. in Bangladesh are following channel of
distribution, which are shown below:

Some of the private Banks Limited in Bangladesh are using credit cards, Banks branch etc. to
provide Banks service to customer. But Bank provides their service through Bank branch.

21
 Chapter 4

Analysis of the Marketing Mix

Strategies of Basic Bank Ltd

4.1 Product:

Basic Bank offers mainly two types of product to its present and prospective customers i)
Deposit products ii) Loans products

Deposit products offered by Basic Bank are as follows:

Deposit Products of Basic Bank Limited

Monthly minimum balance up to Tk. 1.00 Crore
01 Savings Deposit
Monthly minimum balance above Tk. 1.00 Crore

Less than Tk.l.00 Crore

Tk. 1.00 Crore & above but less than Tk.25.00 Crore

Special Notice Deposit(SND) Tk. 25.00 Crore & above but less than Tk.50.00 Crore
02
Tk. 50.00 Crore & above but less than Tk.l 00.00 Crore

Tk. 100.00 Crore & above

01 months

03 months
TDR/FDR(Term Deposit)
06 months
03
12 months

24 months

Loan Products offered by Basic Bank Limited are as follows:

22
SL
Loan Products of Basic Bank Limited
No
Primary Products(Cropes)
01 Agriculture
Others
Agro based Industries-Long term lending
02 Agro based industries
Agro based Industries-working Capital
Micro and cottage industry: Service &
manufacturing
i) Term lending
ii) Working Capital
03 Micro and cottage industry
Micro enterprise:
Business/Commercial/Trading
i) Term lending
ii) Working Capital
Small Industry/Enterprises: Service &
manufacturing
i) Term lending
ii) Working Capital
04 Small Industry/Enterprises
Small Industry/Enterprises:
Business/Commercial/Trading
i) Term lending
ii) Working Capital
Medium industry/Enterprise: Service &
manufacturing
i) Term lending
ii) Working Capital
05 Medium industry/Enterprise
Medium enterprise:
Business/Commercial/Trading
i) Term lending
ii) Working Capital
Large Industry(Manufacturing i) Term lending
06
& Service) ii) Working Capital
Commercial Lending Enterprises not covered under
07 (Business/Commercial/Trading) Cottage/Micro/Small/Medium enterprise
Others
Trade Financing (Export) Packing Credit
08
Export Trade Credit
Trade Financing (Import Industrial
09 Including LIM, PAD, LTR)
Others
Agriculture-Primary Products
10 Other Short Term Loan Industrial (Service and Manufacturing)
Business/Commercial/Others

23
Basic bank`s agriculture loan: which plays a major part in the development of
Bangladesh’s agriculture sector.

4.2 Price:

Basic Bank limited has established to bust up the growth of small and medium enterprise
of the country, keeping the above goal in the mind the management of Basic bank limited
determines its product price, the bank always strive to make its product convenient as
well as lucrative option to its target customers. Considering the macro and micro
economic aspect of the country basic bank limited revises its product price in time to
time. Presently the prices offered by basic bank to different Deposit and loan products are
as follows:

Deposit price offered by basic bank are as follows:

Deposit Products of Basic Bank Limited Rate (per

annum)
Monthly minimum balance up to Tk. 1.00 Crore 7.00%
01 Savings Deposit
Monthly minimum balance above Tk. 1.00 Crore 7.50%
Less than Tk.l.00 Crore 6.00%
Special Notice Tk. 1.00 Crore & above but less than Tk.25.00 Crore 6.50%
02 Deposit(SND) Tk. 25.00 Crore & above but less than Tk.50.00 Crore 6.75%
Tk. 50.00 Crore & above but less than Tk.l 00.00 Crore 7.00%
Tk. 100.00 Crore & above 7.50%
01 months 10.50%
TDR/FDR(Term
03 months 10.50%
Deposit)
03 06 months 10.50%
12 months 10.50%
24 months 10.50%

24
Loan prices offered by Basic Bank are as follows:
SL Rate (per
Loan Products of Basic Bank Limited
No annum)
Primary Products(Cropes) 11.00%
01 Agriculture
Others 13.00%
Agro based Industries-Long term lending 14.50%
02 Agro based industries
Agro based Industries-working Capital 15.00%
Micro and cottage industry: Service &
manufacturing
iii) Term lending 14.50%
Micro and cottage iv) Working Capital 15.50%
03
industry Micro enterprise:
Business/Commercial/Trading
iii) Term lending 15.50%
iv) Working Capital 16.00%
Small Industry/Enterprises: Service &
manufacturing
iii) Term lending 15.00%
Small iv) Working Capital 16.00%
04
Industry/Enterprises Small Industry/Enterprises:
Business/Commercial/Trading
iii) Term lending 16.00%
iv) Working Capital 17.00%
Medium industry/Enterprise: Service &
manufacturing
iii) Term lending 15.00%
Medium iv) Working Capital 16.00%
05
industry/Enterprise Medium enterprise:
Business/Commercial/Trading
iii) Term lending 17.00%
iv) Working Capital 18.00%
Large iii) Term lending 15.00%
06 Industry(Manufacturi iv) Working Capital 16.00%
ng & Service)
Commercial Lending Enterprises not covered under 18.00%
07 (Business/Commercia Cottage/Micro/Small/Medium enterprise
l/Trading) Others 18.00%
Trade Financing Packing Credit 7.00%
08
(Export) Export Trade Credit 7.00%
Trade Financing (Import Industrial 16.00%
Including LIM, PAD,
09 LTR)
Others 18.00%
Agriculture-Primary Products 11.00%
Other Short Term
10 Industrial (Service and Manufacturing) 16.00%
Loan
Business/Commercial/Others 18.00%

25
 Saving Deposit: A lot of people benefit from Saving deposit of basic bank

4.3 Place / Distribution:

The product or service must be in a place which is convenient for the customer. The
organizations will have to find out the buying habits of their potential customer in order
to be able to effectively decide on the place to locate their product or service. Here two
important decisions have to be made, supplying the services to the ultimate users and
selecting suitable place for branches. Branches and the locations of the branches are as
follows:

AGRABAD BRANCH
Pine View (Ground floor)
100 Agrabad C/A, Chittagong-4100

ASADGONJ BRANCH
M.A. Salam Market
774, Asadgonj, Chittagong-4100.

BABUBAZAR BRANCH
Hajee Yusuf Mansion (1st floor)
56 Mitford Road, Babubazar, Dhaka-1100

26
BANANI BRANCH
6, Kemal Ataturk Avenue,
Banani-1213

BANGSHAL BRANCH
230 North South Road
Bangshal, Dhaka-1100

BASHUNDHARA BRANCH
Plot: 13, Block: A, Main Road,
Bashundhara R/A, Dhaka-1229

BELKUCHI BRANCH
Bhuyan Plaza
Mukundagati Bazar, Belkuchi, Sirajganj

BOGRA BRANCH
Bhabani Shachin Bhaban
Hari Dashi Market, 120 Baragola, Bogra-5800

BARISAL BRANCH
102, Chawkbazar Road,
Barisal

CEPZ BRANCH
Moon Tower (1st Floor), E.P.Z. Gate
South Halishahar, Chittagong-4100

CHANDPUR BRANCH
Holding No.- 121, (Kalibari More), Comilla Road
Ward No-7, Pourashava Chandpur, Chandpur-3600

CHAPAINAWABGANJ BRANCH
Holding No.- 449, Huzrapur Road,
Chapainawabganj

CHITALMARI BRANCH
Meem Sargical Clinic, Vill: Aruaborni,
Shaheed Minar Road, Chitalmari, Bagerhat

CHOWMUHANA BRANCH
152, Shamsernagar Road
Chowmuhana, Moulvibazar-3200

COMILLA BRANCH
Holding No.- 03, A.M.D. Complex Market,

27
Chatipatty, Rajgonj, Comilla-3500

COX'SBAZAR BRANCH
Holding no.: 30 (Rashid Complex)
Main Road, Cox'sbazar Sadar, Cox'sbazar-4700

DEWANHAT BRANCH
4/B D.T. Road, Postarpar
Dewanhat, Chittagong-4100

DHAKA CANTONMENT BRANCH

CB 211/4, VIP Road, Kochukhet, Bhashantek,
Dhaka Cantonment, Dhaka-1206

DHANMONDI BRANCH
54, Manna's Tower (1st floor), Road # 4/A,
Satmasjid Road, Dhanmodi R/A, Dhaka-1209

DILKUSHA BRANCH
14 Dilkusha C/A
Dhaka-1000

DOHAZARI BRANCH
Janakalyan Tower (1st floor), Main Raod,
Dohazari, Chandanaish, Chittagong

ELENGA BRANCH
Dr. Hasen Ali Super Market
Elenga Bazar Road, Elenga, Kalihati, Tangail

FAKIRHAT BRANCH
Sheikh Matiur Rahman Market
Old Dhaka Road, Fakirhat, Bagerhat

FARIDPUR BRANCH
Holding no. 29/D, Ward no. 2,
Kotwali, Faridpur

GAZIPUR CHOWRASTA BRANCH

Noor Plaza (1st floor), Gazipur Chowrasta
Mymensingh Road, Gazipur

GULSHAN BRANCH
Ridge Park, Crystal Palace(1st Floor),
SE(D) 22(New), Road No. 140,

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ISHWARGANJ BRANCH
41, Patbazar Road, Ishwarganj
Mymensingh

ISLAMPUR BRANCH
6-7, Islampur Road (2nd floor), Islampur
Dhaka-1100

JESSORE BRANCH
35, M.K. Road (1st floor),
Jessore-7400

JHENAIDAH BRANCH
203, Hossain Shaheed Suhrawardy Road, Jhenaidah Sadar
Jhenaidah
JHIKARGACHA BRANCH
Samad Market, Krishnanagar, Jhikargacha
Jessore

JORARGANJ BRANCH
Gopinathpur, Jorarganj, Mirersharai Chittagong

JUBILEE ROAD BRANCH

G.R. Plaza, 5 Jubilee Road
Chittagong-4100

KARWAN BAZAR BRANCH

Latif Tower, 47 Karwan Bazar
Dhaka-1215

KDA AVENUE BRANCH

Al-Mumin Centre(1st floor), 58, KDA Avenue
Sonadanga, Khulna-9100

KERANIGANJ BRANCH
Century City Complex, Shaheed Delwar Hossain
Road, East Aganagar, South Keraniganj, Dhaka.

KHATUNGONJ BRANCH
193 Khatungonj,
Chitagong-4000

KHULNA BRANCH
107, Sir Iqbal Road,
Khulna-9100

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KOTALIPARA BRANCH
Bank Bhaban, Sultan Market,
Ghagore Bazar, Kotalipara, Gopalganj

KUSHTIA BRANCH
Biswas Super Market (1st floor)
95/170, N.S. Road, Shapla Chattar,
Thanapara, Kushtia-7000

MADHABDI BRANCH
Bank Para
Madhabdi Bazar, Narsingdi-1604

MAIN BRANCH
Bana Shilpa Bhaban (Ground floor)
73 Motijheel C/A, Dhaka-1000

MATHBARIA BRANCH
Thanapara Road, Ward no. 09
Mathbaria, Pirojpur

MATUAIL BRANCH
Asiatic Shopping Mall Complex, Mominbagh
Chowrasta, Paradogair, Matuail, Demra, Dhaka

MAWNA BRANCH, Hamida Complex, Telihati, Sripur, Gazipur-1741

MIRPUR BRANCH
BSCIC Electronics Complex, Industrial Plot No. 1/1
Section 7, Avenue 4, Road No. 3 Pallabi, Dhaka-1221

MIRPUR BAZAR BRANCH

Chowdhury Complex, Dhulia Khal Road,
Mirpur Bazar, Bahubal, Habiganj

MOHIPUR BRANCH
Nazibpur, Mohipur
Kalapara, Patuakhali

MOULVIBAZAR BRANCH
Gulbadan Market (1st Floor)
4 Moulvibazar, Dhaka-1211

MYMENSINGH BRANCH
76/A, Chhoto Bazar Road

30
Mymenshingh-2200

NARSINGDI BRANCH
Sutapatti Road
Narshingdi-1600

NATORE BRANCH
Holding No.- 327, Rosy Market
Station Bazar, Natore

PAHARTOLI BRANCH
Plot No. 9 & 10, Block-G, Firoz Shah Housing Estate
Pahartoli, Chittagong

PATHERHAT BRANCH
Ibrahim Soban Tower, Patherhat, Noapara,
Raozan, (Kaptai Road), Chittagong

RAJSHAHI BRANCH
Anam Plaza (1st floor)
Shaheb Bazar, Rajshahi-6100

RANGPUR BRANCH
97/1, Central Point, Central Road,
Rangpur-5400

SAIDPUR BRANCH
T. R. Road (Dinajpur Road),
Saidpur 5310, Nilphamari

SATKHIRA BRANCH
12478(Old), Itagacha Bazar Mor,
Sultanpur Bara Bazar Road, Satkhira-9400

SAVAR BRANCH
Savar New Market
Holding # 3, Ward # 7, Savar, Dhaka-1340

SHANTINAGAR BRANCH
Concord Grand (1st floor)
169/1, Shantinagar Road, Dhaka-1217

SHOLOSHAHAR BRANCH
Proskov Bhaban (1st floor), 110 CDA
Avenue, Nasirabad, Muradpur, Chittagong

31
SHYAMOLI BRANCH
House# 24/1, Mohammadpur Housing Estate
Block B, Ring Road, Shyamoli, Dhaka-1207

SIRAJGANJ BRANCH
Shapneel Shoping Complex
305, S.S. Plaza, S.S. Road, Sirajganj

SONARPARA (RAYNAGAR) BRANCH

61, Monsuf-Rowshan Plaza, Sylhet-Tamabil Road,
Raynagar, Sonarpara, Sylhet

TANBAZAR BRANCH
55/21 S.T.S Tower, S.M Maleh Road
Tanbazar, Narayanganj-1400

TUNGIPARA BRANCH
220, Powra Super Market, Patgati Bazar
Tungipara, Gopalganj

UTTARA BRANCH
Plot No. 67/A (1st floor), Rabindra Saroni
Sector-7, Uttara Model Town, Dhaka-1230.

ZINDABAZAR BRANCH
Wahid View (1st floor)
5477 East Zindabazar, Sylhet-3100

Sheikh Abdul Hai Bacchu, Chairman of BASIC Bank Limited, inaugurates the 62th branch
Opening at Keraniganj, Dhaka.

32
4.4 Promotion:
This involves determining the most effective means of letting the potential customers know the
availability and benefits of the product or service. In marketing mix the bank professionals have
to take promotional activities as, advertising, publicity, sales promotion, personal selling etc. The
stuffs of banks have to promote their products for increasing the sales. Basic Bank limited has
implemented the following activities as its promotional as well as corporate social responsibility:

Sports and Cultural Activities

During the year 2011, the Bank extended financial support Tk.1.00 crore each to Sheikh Russel
Krira Chakra and Sheikh Jamal Dhanmondi Club towards development of games and sports.In
the year 2011, an amount of Tk.8.00 lac was contributed for making documentary exhibition and
archive of scarce footage of our great independence war. The Bank also contributed Tk.10.00 lac
to Bangladesh Table Tennis Federation in the year 2011. The Bank has been one of the patrons for
the Baishakhi Fair arranged by Bangladesh Small and Cottage Industries Corporation (BSCIC) to
encourage the development of small and cottage industries since 2005. In the year 2011, the Bank
sponsored Tk.4.00 lac to arrange Baishakhi Fair. The Bank also sponsored 25th to 31st National
Junior Chess Championship by contributing Tk.1.00 lac in each year. It was a privilege and honor
for the Bank to work with the 11th SA Games held since January 29, 2010 to February 09, 2010
in Dhaka as a co-sponsor by contributing Tk.1.00 crore to Bangladesh Olympic Association.

BASIC has been patronizing the Handball Federation by arranging BASIC Bank Limited Inter-
district National Women Handball Tournament. The Bank also sponsored the National &
International BASHAAP Championship in 2008. In the year 2010, BASIC Bank Limited donated
Tk. 0.50 lac to Kabitalap for holding a program marking its 30 years anniversary.

Disaster Relief:

In the year 2011, the Bank donated 25,000 pieces of blankets to Prime Minister’s Relief and
Welfare Fund. In the previous year the Bank donated an amount Tk.1.00 crore to the same Fund
for the rehabilitation of the victims of the Nimtoli Fire Tragedy. In the year 2007, the Bank
donated Tk.25.00 lac to the Chief Adviser’s Relief Fund for the flood affected people and
Tk.25.00 lac for the SIDR victims.

33
 Handover of blankets to the Honorable Prime Minister

Promotion of Entrepreneurship:

The promoters of the Bank envisaged fostering entrepreneurship amongst the potential, new and
small entrepreneurs and generating employment through financing Small and Medium Scale
Industries (SMIs) towards industrialization actually needed for economic growth of the country.
Keeping the dream in mind, we never ran after the so-called blue chips (the established and larger
corporations) towards profit maximize of the Bank. Rather, we always remained stick to the triple
bottom line: People, Planet & Profit and focused attention to the SMIs which is ultimately
promotion of SMEs. In this way, a lot of entrepreneurs have grown with us through which
employment opportunities are created for a large number of people.

Protection of Environment:

Today our planet is exposed to a severe environmental catastrophe than ever before. As a
humble effort to reduce environmental pollution, we have financed 26 CNG refueling
stations. Again, most of our office vehicles have already been converted to CNG fueling
system. Use of CNG fuel also helps save hard earned foreign currency. Environmental
issues are taken into account while assessing credit proposal for the industrial projects.

Education
34
During 2011, the Bank distributed Tk.5.00 lac among the meritorious students of Gopalganj Zilla
Samity. In 2010, BASIC Bank Limited donated a fund of Tk.50.00 lac to the aggrieved families
of the two late secretaries of the Government of Bangladesh for maintaining the educational
expenditure of their children. Besides, the Bank also contributed a fund of Tk.5.00 lac to the
daughters of late Chapa Rani Bhowmik for their education purpose. In 2009 BASIC Bank
Limited donated Tk.2.00 lac to Bangladesh Asiatic Society for publishing Bengali version of the
largest National encyclopedia of Bangladesh. In publishing the first edition (English version) of
the encyclopedia, BASIC Bank Limited donated Tk.5.00 lac as well. ‘BASIC Bank Limited Gold
Medal’ was introduced in collaboration with the Banking Department, University of Dhaka for
the students of the department with outstanding academic achievements. With a view to provide a
smooth interface between student life and professional life, we offer internship facility to the
BBA and MBA students of different universities with commendable academic records after
completion of all other academic requirements. In the year 2010, a huge numbers of interns were
granted the opportunities to groom with us in a truly professional, dynamic and challenging
corporate environment.

Handover of financial aids and educational materials to the educational institutions of

greater Gopalganj and Bagerhat districts

4.5 Process:

35
It refers to the systems used to assist the organization in delivering the service. An
efficient service will foster consumer loyalty and confidence in the company. To maintain
efficient service an organization should consider these.

a) Flow of activities: All the major activities of BBL is guided by Bangladesh Bank. BB
provides certain rules and regulations to continue banking operations. The departments of
BBL follow these regulations strictly.

b) Standardization: BBL has standardized rules and procedures to maintain its operations.
Each bank has its own standard rules, documents, forms etc.

c) Customization: In every branch of BBL, there is specialty counters where customers

can go for query and easily they can decide about there purchase of service.

d) Number of steps: The number of steps for a certain work should be specified and
specific pattern should be followed to complete them. It will minimize the ultimate time
consumption.

Regular activities of the Basic Bank Ltd.

36
e) Simplicity: In BBL there are various functions. Separate counters are established to
perform them. But there is no clear identification mark on the counters. This problem
often extends the time needed. Those counters should have clear indication marks.

f) Customer involvement: In the basic transaction of banks, customers have to be

involved as the signature required, cash money handling etc.

4.6 Physical Evidence:

Physical Evidence is the element of the service mix which allows the consumer again to
make judgments on the organization. Physical evidence is an essential ingredient of the
service mix, consumers will make perceptions based on their sight of the service
provision which will have an impact on the organizations perceptual plan of the service.
There are no physical attributes of a service, so a consumer will rely on material cues.
Examples of physical evidences are:

 Web pages
 Furnishers
 Brochures
 The building
 Annual reports
 News articles
 Uniform

37
 24th
annual general meeting of Basic Bank Limited held at the Head office

Physical evidences may also includes

i) Signage: The logo of BBL is a signage; people can easily identify BBL by its logo.

ii) Tangibles: BBL often gives pen, pad, calendar etc to its valued clients. The memo,
cheque books, etc are tangible elements.

4.7 People:

BASIC Bank has a well-diversified pool of human resources, which entails personnel with high
academic background. Also, there is a positive demographic characteristic. Most employees are
comparatively young in age yet mature in experience. As at the end 2012 the total number of
employee was 1657.

Training:
Intensive training program, on a regular basis, is being imparted to employees of all levels to
meet the challenges in the banking industry and to help employees to adapt the changes and new
working conditions. Bank believes that human resource is the main driving force and quality
human resources are the key sources for the success in today’s banking business. Keeping this
view in mind and recognizing the importance of training for professional excellence, BASIC
Bank established its own training cell in 2005 with modern facilities. In 2011 the cell arranged 29
training courses and provided training to as many as 608 employees of the bank. Bank also sends
its employees to BIBM and other local and foreign institutions with a view to enhancing and
sharpening their knowledge base. During the year 2011 a total of 114 employees of the Bank
were also provided with training in various fields in BIBM and other institutions. BASIC Bank
established its own training institute in 2012 with all modern facilities. In 2012, they arranged 20
training courses and provided training to as many as 498 employees of the bank. The Bank also
sends its employees to BIBM and other local and foreign institutions with a view to enhancing
and sharpening their knowledge base. During the year 2012, a total of 191 employees of the Bank
were provided with training in various ields at BIBM, BBTA and other training institutions.
Moreover, 5 officials were provided with overseas training programs in 3 diferent programs.

38
Recruitment of New Officers:

The Bank follows a strict recruitment policy in order to ensure that only the best
candidates are recruited. For fresh recruitment, comprehensive written test and viva voce
are being conducted through the renowned institutions like IBA, BIBM, BIM etc. The
Bank, so far, has recruited seven batches of entry-level management staff, all of whom
have got excellent academic background. In 2012 the bank recruited 284 fresh employees
(except sub staffs) at various grades from different academic background.

M Kamran Hamid, Deputy General Manager of BASIC Bank Limited, seen among other
officials of the bank at a workshop on ‘General Banking’ at the bank’s training institute in
Dhaka recently.

39
 Chapter 5

Findings of the Study

5.1 Findings:
 As a state-owned scheduled bank, BASIC Bank Ltd. is playing an important role
toward the growth and economic development of Bangladesh.

 The bank has been providing off-line computerized banking service to all its
customers since its inception. To accelerate the speedy & accurate account ledger
maintained & to make available all potential international banking products, the
bank has already started implementing centralized on-line banking system.
Already all the branches of the bank providing on-line services.

 To meet the challenges in the banking industry & to help employees to adapt the
changes & new working condition, training is essential but no such training center
has yet been established in BASIC Bank. Moreover, training is given to
employees is not adequate.

 SWIFT is being used in some Branches and the head office of the bank for trade
finance-related operations like documentary credit, documentary collections, fund
transfer, guarantee, etc. with optimum security.
 The Technological facilities of the branches are not sufficient.
 The main important thing is that the bank has no clear mission and vision
statement.

40
  The bank failed to provide a strong quality recruitment policy in the lower and
some mid-level position.
 The quality of the service at BASIC Bank is better than any other commercial
bank but the bank does not compete well with the multinational banks.
 There is no separate team for the marketing of eh services who might inform the
customers about their different services of the branch.
 Inadequate human resources are problem for the branch to operate its banking
activates.
The ATM facilities of the bank are inadequate though it is a modern banking technique to
facilitate time driven people

41
 Chapter 6

Recommendations and Conclusions

6.1 Recommendations

To increase the efficiency in customer service the BASIC Bank should develop its
process of providing services. To get a perfect process of delivering services, the
customers should be asked. The other suggestions are as follows:

 Personal relationship should be built and developed with the customers.

 The employees of the branch should be trained up contentiously.
 The employees of the branch should be more smart and active in rendering
customer service.
 The bank can open more branches to reach to more customers.
 Each and every section of the general banking department should fully be
computerized for rendering better service.
 Number of officers in the general banking department should be increased.
 One counter/ stop service should be introduced in the branch for proving better
service.
 The bank should be more profit concern as well as took part to the social quick
service.
 The bank should introduce more products based on the market demand.
 The bank should reduce their minimum balance to attract more customers.
 The department of bank more efficient to make profit by satisfying customers.
 Being a clear transparent the bank can provide the best support to the customer as
earn profit.

42
  BBL shall take more attractive promotional activities.
 ATM network of BBL is not sufficient, new ATM booths shall be opened.
 The software used by BBL for their operations shall be improved.
 All the branches of BBL shall be online and interrelated with each others.

6.2 Conclusion

The Banking arena in recent time is one of the most competitive business fields in
Bangladesh. As Bangladesh is a developing country, a strong banking sector can change
the socio economic structure of the country. So we can say, the whole economy of the
country in linked up with its banking system. There are 54 banks in Bangladesh in which
38 are indigenous commercial Banks. BASIC Bank Ltd. is a state-owned scheduled Bank
as well as a potential and promising bank in the banking sector in Bangladesh. As
desired, its functions and activities in the economy are being aligned with the objectives
set by the Government of Bangladesh since its inception. This bank performs hundreds of
important activities both for the public and for the government as a whole. It has an
outstanding bearing to thrive our business sector. It has strong performance on General
Banking, Loans & Advances, Industrial credit and foreign Exchange. By using limited
technology and having limited of branches at home it is increasing the volume of export-
import business including homebound remittances. The effective and efficient Foreign
Exchange Business of the Bank helps in the continuous growth and progress of national
economy.

BASIC Bank Limited is, no doubt, playing a vital role in the economic sector of
Bangladesh. I hope, the successful walkway of BASIC Bank Limited will remain
continuous for a long time and become a role model in the banking sector in our country.

BASIC is redefining the traditional banking concepts and transforming it into relationship
banking. BASIC considers the borrower as clients. The mutual relationship is the essence
of long term success in the banking industry. The ever increasing competitive nature of

43
banking business determines the direction of the bank. Sustainability in better
performance.
6.3 Bibliography

 Principles of Marketing (11th Edition), by Philip Kotler & Gary Armstrong.

New Jersey, Person prentice Hall, 2006
 Advertising & Promotion (6th Edition) by George E. Belch & Michael A. Belch.
New Delhi, Tata Mc Graw-Hill Publishing Company, 2006
 Business Research Methods (9th Edition) by Donald R. Cooper/Pamela S.
Schindler.
New York, Mc Graw-Hill, 2006
 Annual Report: BASIC Bank Limited, 2008, 2007.
 Various Official Records of BASIC Bank Limited.
 http://www.basicbanklimited.com
 http://www.bangladeshbank.com

The End

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