Pre-feasibility/Survey report on Laxmipur sadar for establishing an urban branch

 Descriptive Attributes:
Factors under Short Description
consideration
Area Description

Business of the Area

Commercial Trading Laxmipur is the district head quarter. All the offices of a district head quarters are situated here,
Places so it has commercial importance, which is increasing day by day. Utility facilities like gas,
electricity & water supply, model schools, colleges are available here. A numbers of developer
companies already started their operations. Some posh markets / shopping moll already
established here. That is why the area faces fast urbanization & making the area important to the
people. In a nut shell the area is being expanded & has a business prospect.
 NGOs:  Insurance:
1. BRAC 1. Delta Life Insurance
2. ASA 2. National Life Insurance
3. TMSS 3. Sunflower Life Insurance
4. BURO 4. Popular Life insurance
5. SOPIRET 5. Meghna Life Insurance
6. UDDIPON
 Banks:  Multipurpose & Co-operatives:
FI Information 1. Sonali 2. Agranai 3. Janata 4. BKB 5. IBBL 1.
6. Shah Jalal Islami 7. Dutch Bangla bank 2.
8. Pubali 9. The City Bank 9. NCCBL 10. 3.
UCBL 11. BRAC Bank 12. Uttara Bank

 SME Service Center:

1.
2.
3.
Banking Business Analysis of Selected Banks:

SL Factor PUBALI Bank Shah Jalal Islami Bank Dutch Bangla Bank

1 Year of 1967 2011 2011

Establishment
2 Place Chawkbazar, Laxmipur Hospital Road, Laxmipur Godown Road,
Laxmipur sadar
3 Type (Urban/Rural) Urban Urban Urban
4 Area (Square feet) 1800 4000 5400
5 Rent (Square feet) 8 15 14
6 Manpower 15 10 14
7 Name of Branch Mr. Aprajit Majumder Mr. Rafiqul Islam Mr. Neaz Uddin
Manager
Ahmed
8 Designation of Asstt. Vice President Senior Executive
Senior Officer
Manager
Officer
9 Deposit Trend (Tk. 2010: 20.45 2010: 2010: ------
in crore) 2011: 22.48 2011: 5.35 2011: ------
2012: 26.12 2012: 13.24 2012: 19.00
10 Deposit Mix High cost: 61 High cost: 64 High cost: 30
Low cost: 24 Low cost: 25 Low cost: 53

Page # 1
 Non cost: 15 Non cost: 11 Non cost: 17

11 Advance (Tk. in 2010: 3.23 2010: 2010: N/A

crore) 2011: 4.96 2011: 1.20 2011: N/A
2012: 6.14 2012: 3.20 2012: 0.50
No of A/C: 102 No of A/C: 23 No of A/C: 19
CC (Hypo): 14 CC (Hypo): 1 CC (Hypo): 2
Term loan: 2 Time Loan: 1 Time Loan: -------
SOD: 52 SOD: 13 SOD: 3
SME: 19 SME: NIL SME: 4
Retail loan: 15 Retail loan: 8 Retail loan: 10
12 Advance to Deposit 2010: 16:84 2010: 2010: n/a
Ratio 2011: 22:78 2011: 22:78 2011: n/a
2012: 24:76 2012: 24:76 2012: 03:01
13 NPL (%) (As on Dec’ 2012) 3.23% (As on Dec’ 2012) NIL (As on Dec’ 2012) ----------------

14 Profit Target-2012 2010: 0.65 2010: ------ 2010: N/A

(Tk. in crore) 2011: 0.80 2011: (0.45) 2011: N/A
2012: 1.00 2012: 00.10 2012: 0.08
15 Profit (%) Target 2010: 105% 2010: ------ 2010: n/a
Achieved 2011: 110% 2011: 60% 2011: n/a
2012: 102% 2012: 50% 2012: ------
16 Inward Remittance (As on Dec’ 2012) : 18.00 (As on Dec’ 2012): 5.00 (As on Dec’ 2012) : 2.30
(As on Dec’ 2012)
17 Inland Remittance (As on Dec’ 2012) : 20.00 3.00

18 AD Branch No No No

19 Online Banking Yes Yes Yes

20 ATM No No Yes

21 Evening Banking Yes No No

22 Is Manager Local Yes No Yes

Inhabitant?
23 Factoids 1. No of A/C: 1. No of A/C: 1. No of A/C:
SB: 11500 SB: 500 SB: 6500
STD: 60 STD: 10 STD: 40
CD: 2500 CD: 220 CD: 200
2. OperatingExpenses/Month:4 lac 2. Operating Expenses/Month:8.00 lac 2. Operating Expenses/ Month:
3. No of branches in this Zone:19 3. No of branches in this Zone: 4 20.00 Lac
4. Cost of fund: 7.55 4. Cost of fund: 8.35 3. No of branches in this Zone:-
5. Renovation Cost: -------- 5. Renovation Cost: 1
6. BG Portfolio: 0.02 Crore 6. BG Portfolio: -------------- 4. Cost of fund: 5.6
Commission on BG: 0.75%/qtr. 7. Commission on BG: 0.50%/ qtr. 5. Renovation Cost: nil
6. BG Portfolio: nil
7. Commission on BG: nil

Performance of SMESC Year of Establishment

Place

Space (Sq. feet)

Rent per sft.

Manpower
Deposit Portfolio

No of Loan A/C
Loan outstanding
No of Advance A/Cs
Average Loan Size
Classified Loan (In Number)
Classified Loan (In Amount)
Operating Expense/Month
Other SMEs in Pubna
/Sirajgonj
Profit in Dec-2012
Immigration A moderate number of local inhabitants are employed outside the country. A large chunk of
population is also work in Middle East, K.S.A, Doubai, & Katar. They remit substantial amount of
foreign currency to their family. Though lateral entrant of IBBL, copped the majority market share
of the total banking business where the others are lagging far behind.
Agricultural Prospect The land of Laxmipur is popular for cultivating peanut, areca, coconut, soya dal etc.; most of the

Page # 2
 farmers are engaged themselves for such profession since long. Now a days soya dal is very
popular “food grain” in our country. So agricultural sector has a moderate prospect here.
Financial Analysis:
Break Even Financial Deposit:
Position Commercial Lending:
Inward Foreign Remittance:
Forecasted Financial Particulars Years
1st 2nd 3rd 4th 5th
Performance (5 Years)
Manpower
Deposit
Loans &
Advance
Profit

 Observation: The proposed location is moderately feasible for the bank to setup a SMESC with the
following banking service
Degree of SMESC Feasibility:

Not Feasible

Marginally Feasible

Moderately Feasible

Highly Feasible

 Suitability of the area for setting up a Branch/ SMESC? Branch

 ATM Booth? Yes

 Online Banking? Yes

 AD License? No

 Islami Banking Service Desk? NO

 Evening Banking? Yes

 Separate Desk for Inward Remittance Distribution? Yes

Authorized Signature Authorized Signature

Page # 3