Banking Theory and Practice on Prime Bank Limited

The principle objective of this report is to analysis Banking Theory and Practice on Prime Bank Limited. General objectives of this reports are to build up strong pillar of capital, to promote trade commerce and industry, to discover strategies for achieving systematic growth, to improve and broaden the rang of product and service, to development human resource by increasing employment opportunities, to enhance asset of shareholders, to keep business mortality, to develop welfare oriented banking service and to offer highest possible benefit to customers.

 

Prime Bank Limited

Prime Bank Limited is a private commercial bank in Bangladesh. It was established on April 17, 1995. It is now one of the banks in Bangladesh which follows international standard in Banking and Finance.

The Prime Bank Limited being a Banking Company has been registered under the Companies Act 1994 with its Registered Office at 119-120 Motijheel C/A, Dhaka-1000.The Bank operates as a Scheduled Bank under a Banking license issued by Bangladesh Bank, the Central Bank of the country.

 

Company Overview

Prime bank provides financial services to consumer, commercial, and agricultural customers in the communities of both Plymouth and Sioux County in Iowa. It offers deposit services, such as personal checking, business and agricultural checking, savings, certificates of deposits, individual retirement accounts, and others; and loan services, such as consumer lending, business and agricultural lending, and others. The company also provides additional services, such as investment and insurance services, trust services, convenient services, bank clubs, credit card account access, and others. It also offers Internet banking services. Prime bank serves consumer, commercial, and agricultural customers

Goals and objective of Prime bank:

  1. To build up strong pillar of capital
  2. To promote trade commerce and industry
  3. To discover strategies for achieving systematic growth.
  4. To improve and broaden the rang of product and service.
  5. To development human resource by increasing employment opportunities .
  6. To enhance asset of shareholders
  7. To keep business mortality.
  8. To develop welfare oriented banking service.
  9. To offer highest possible benefit to customers.

 

 

Prime line

Online Branch Banking

The Bank has set up a Wide Area Network (WAN) across the country to provide online branch banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank

Under this system a client will to be able to do following type of transactions:

  1. Cash withdrawal from his/her account at any branch of the Bank irrespective of location.
  2. Cash deposit in his/her account at any branch of the Bank irrespective of location
  3. Cash deposit in other’s account at any branch of the Bank irrespective of location.
  4. Transfer of money from his/her account with any branch of the Bank.

Terms & Conditions of Online Branch Banking Service

Online branch banking service is designed to serve its valued clients.  Under this system, you shall be able to do the following type of transactions:

  1. Cash withdrawal from your account at any branch of the Bank.
  2. Deposit in your account at any Branch of the Bank.
  3. Transfer of money from your account to any other account with any Branch of the Bank.

Online Transaction Membership Fee Membership fee of  Tk. 50/- per month for the Online Branch Banking  Transaction Limit

  1. Maximum ceiling of cash withdrawal by self is Tk. 10,00,000/- (ten lac) only per transaction.
  2. Maximum ceiling of cash withdrawal by third party (bearer) per transaction is below Tk…………… only (please mention the limit you wand to place)
  3. Cash deposit/transfer  by online transaction is unlimited.

Online Transaction Membership Fee Membership fee of  Tk. 50/- per month for the Online Branch Banking Service.

Charges for Online Transaction 01. There will be no charge for transaction within the city where the account is domiciled.   02. Fee Tk. 50/- will be realized from the customer’s account for each remote transaction (inter-city)  for amount up to Tk. 1,00,000 (one lac). 03. Fee at the rate of  0.075% will be realized from the customer’s account for each remote transaction of amount more than Tk. 1,00,000 (one lac).

Deposit Scheme

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people. Interest rate of Savings Deposit is 6.00%.

We have formulated the following Savings Schemes:

  1. Contributory Savings Scheme
  2. Education Savings Scheme
  3. Short Term Deposit
  4. House Building Deposit Scheme
  5. Monthly Benefit Deposit Scheme
  6. Fixed Deposit Scheme
  7. Foreign Currency Account
  8. Non-resident Investors Taka Account
  9. Prime Millionaire Scheme

Loan Scheme     

We have formulated the following Loan Schemes

  1. General Loan Scheme
  2. Lease Finance
  3. House Building / Apartment Loan Scheme
  4. Small and Medium Enterprise (SME)
  5. Consumer Credit Scheme
  6. Hire Purchase
  7. Advance against Share

 

Additional service 

Everything You Need for Convenience

We offer leading-edge conveniences to put you in touch with your accounts.

ATM Services

With the Prime bank ATM card, you can transact business at ATM terminals around the world.

Debit Card

The Prime bank SHAZAM® Chek Card is the perfect alternative to check writing. This card combines ATM capabilities with debit access to your account at any merchant who accepts Visa®. Unlike a credit card, money is debited directly from your checking account.

 

Prepaid Cards

prepaid cards are perfect for gift giving, travel, teaching youth about managing their personal financial matters, or for people without bank accounts.  Prime bank prepaid cards are the perfect fit for a variety of needs.

Internet Banking

Internet Banking provides you with a secure connection to view your account information 24 hours a day, 7 days a week from any PC with an Internet connection.  You can monitor up-to-date activity, transfer funds, and make loan payments, all free of charge!

Tele Bank

Our telephone banking offers you another way to access your accounts around your schedule. This 24-hour service allows you to check your account balance, transfer money, make loan payments, or see if a check has cleared.  It’s simple to use, safe, and free!

Bill Payer Service

The Bill Payer service is available through both Internet Banking and Tele bank. This convenient service allows you to choose the payment amount, control the payment date, and cancel a payment at any time. It’s the most convenient way to pay your monthly bills.

Safe Deposit Box

Keep important documents and valuables secure with a safe deposit box.

Direct Deposit

Save the hassle of making a special trip to deposit your paycheck, Social Security check, or government payment with Direct Deposit. Your funds are automatically deposited in your checking or savings account on time every time-wherever you are!

ACH Origination

More convenient and safer than issuing checks, Prime bank’s ACH services can save you time and money, when dealing with recurring payments. Whether it’s crediting your employees’ payroll or debiting your customers’ accounts for recurring payments, we can help with all of your ACH origination needs.

MasterCard and Visa Merchant Processing

Our card program provides sales and services to retail merchants, service businesses and professional persons. This service allows you to accept Visa or MasterCard as payment for goods and services.

 

Loans and Advances

Consumer Loan Products:

Housing Loan: Finance up to 70% of Construction/Buying cost

Up to 10 Years: 11.00%
Up to 15 Years: 11.50%

Vehicle Loan: Finance up to 80% of Buying cost

Up to 5 Years: 10.50%

Personal/Mortgage Loan

Interest Rate: 12.00%
Revolving or Term Loan

Equipment Loan

Up to 70% of cost of Equipment
Up to 5 years
Interest Rate 11.00 – 12.00%

Education Loan

Up to 80% of study cost
Up to 5 years form final disbursement
Interest Rate 11.00%

Loans

  1. Project Finance
  2. Working capital Finance
  3.  Trust Receipt Loan
  4. Overdrafts

 

Residential Real Estate Loans

Whether it’s time to purchase your first home, move to a new home, or refinance your existing mortgage, Prime bank offers responsive service and multiple real estate loan. options.Fixed Rate Mortgage Loans – Loans are based on a fixed interest rate and monthly payment schedule. Interest rates are always competitive with terms to suit your needs.Adjustable Rate Mortgage Loans (ARMs) – This loan offers the borrower a lower initial rate with the same great service. Than is available with the conventional fixed rate mortgage.Home Equity and Home Improvement Loans – This type of non- revolving installment loan uses the equity you have built in your home to finance home improvements, consolidate debt, pay for college expenses, or cover other major purchases.

Vehicle Loans

When you are buying a new or used vehicle check with us first for the most competitive rates. We can pre-approve your loan so that your shopping will be easier.

Personal Loans

No matter what your needs, we can tailor a loan just for you. We offer secured and unsecured personal installment loans.

Visa Credit Cards

Get hometown convenience with worldwide acceptance, and earn bonus points for every dollar you spend. Redeem these bonus points for free airline tickets and other great gifts

SMS Banking: Track your account details anytime from anywhere. Our SMS Banking lets you keep track of your account even while you are on the move.  Register for the service by filling a registration form at our bank. After registration send SMS to 6262 with the keyword for your query. Receive a reply message on your mobile with your required information.

Example:

To know your latest Bank balances enter the text ‘BE’ and send SMS to 6262. You will shortly receive following reply.

 

Prime Bank Instrument Investment Scheme

The use of official-sounding terms, such as Prime Bank Notes or Debentures, or Roll-over Programs, typically take the form of banknotes, debentures, letters of credit, bank purchase orders, zero coupon bonds, or guarantees.

The word “Prime” is meant to refer, generically, to reputable financial institutions (example: world banks) who supposedly issue these investments. These schemes sometimes claim affiliations with major international organizations, like the International Chamber of Commerce (ICC) and International Monetary Fund (IMF). Both the IMF and ICC deny any association with these types of international investment programs.

Persons promoting these schemes lead prospective investors to believe they are being invited to participate in an otherwise secret trading regime. Investors might be required to sign non-disclosure and non-circumvention agreements which prevent them from disclosing to any persons the identity of the parties involved in the investment programs and the terms of the transactions

 

Prime Bank Instrument Fraud

Prime Bank Instrument fraud schemes have attracted significant international attention, since individuals and organizations have lost billions of dollars worldwide. “Prime Bank Instrument Fraud” is the general term given to fraud schemes that go by many different names, including:

  1. Prime Bank Debentures
  2. Prime Bank Guarantees
  3. High-Yield Trading or Roll Programs
  4. Standby Letters of Credit
  5. International Chamber of Commerce (ICC) 3039 or 3034 Letters of Credit
  6. Guaranteed Bank Notes
  7. Discounted U.S. Treasury Securities
  8. International Monetary Fund Backed Securities

 

Prime Bank Scams

This scam begins as an offer to join an exclusive investment program normally reserved for high-roller international investors with a return rate as high as 100%.You receive an offer to get in on an exclusive investment program that’s usually reserved for only the top international financiers. This investment opportunity involves the trade of extremely complex “prime bank” financial instruments that are promised to generate huge returns that could reach 100%.The crooks running the scam will probably have all kinds of documentation, contracts and brochures for you to read and the names used will sound official and legitimate. Some will even point out that they are not a “prime bank” investment in attempt to trick investors wary of prime bank scams. But the basic premise of the investment opportunity, the trade of prime bank or other financial instruments, is exactly the same. Only the name has been changed to protect the guilty. Despite the layers of complexity, the shiny brochures, and the slick sales pitch, prime bank scams are, at their core, very simple. Once you know what to look for, they can be detected and avoided.

Prime Bank Note and “Bank Guarantees” scams, fraud

The following may be helpful to anyone approached about this type of investment:

Prime Bank Note:

International fraud artists have invented an investment scheme that offers extremely high yields in a relatively short period of time. In this scheme, they purport to have access to “bank guarantees” which they can buy at a discount and sell at a premium. By reselling the “bank guarantees” several times, they claim to be able to produce exceptional returns on investment. For example, if $10 million worth of “bank guarantees” can be sold at a two percent profit on ten separate occasions, or “traunches,” the seller would receive a 20 percent profit. Such a scheme is often referred to as a “roll program.” To make their schemes more enticing, con artists often refer to the “guarantees” as being issued by the world’s “Prime Banks,” hence the term “Prime Bank Guarantees.” Other official sounding terms are also used such as “Prime Bank Notes” and “Prime Bank Debentures.” Legal documents associated with such schemes often require the victim to enter into nondisclosure and noncircumvention agreements, offer returns on investment in “a year and a day”, and claim to use forms required by the International Chamber of Commerce (ICC). In fact, the ICC has issued a warning to all potential investors that no such investments exist. While foreign banks use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

 

Some Tips to Avoid Prime Bank Note Related Fraud:

Think before you invest in anything. Be wary of an investment in any scheme, referred to as a “roll program,” that offers unusually high yields by buying and selling anything issued by “Prime Banks.”As with any investment perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.

 

Personal banking

A checking account is so much more than just a place to keep your hard-earned money. You should choose the right account for you based on your unique banking preferences. We have several options available to you, and we would be happy to meet with you to discuss which is more suited to your individual needs.

 

Prime Checking (FREE Checking) 

This FREE checking account offers you all the benefits, features and conveniences you need in a checking account.

  1. Minimum to Open – $1
  2. Presto ATM Withdrawals
  3. Free Check Card\ No Minimum Balance Required
  4. No Monthly Maintenance Fee
  5. Unlimited Check Writing
  6. Free Online Banking
  7. Free Online BillPay
  8. Free Notary Service
  9. Free Telephone Banking

 

Prime Plus Checking:

Our regular checking account also offers you all of the features you desire from a checking account, but includes many other benefits that will make it easier and more convenient to manage your money.

  1. Minimum to Open – $100 Minimum Average Daily Balance To Avoid Maintenance Fee – $1,000
  2. Monthly Maintenance Fee – $10 (If Minimum Balance is Not Maintained)
  3. Unlimited Check Writing
  4. Free Basic Checks or 50% Discount on Alternate Style
  5. Free Notary Service
  6. Free Telephone Banking
  7. Free Online Banking
  8. Free Online BillPay
  9. Free Presto ATM Withdrawals
  10. Free Check Card
  11. Free Image Statements
  12. $100 off Closing Costs on Home Equity Line of Credit
  13. .25% Discount on Consumer Loans

 

Prime Time Checking (50+):

If you’re 50 years or older, you’ll appreciate our interest-bearing Prime Time account. It is designed to offer money-saving features while providing peace of mind and convenience

  1. Ages 50+
  2. Interest Bearing Interest Bearing
  3. Minimum to Open – $100
  4. Minimum Average Daily Balance to Avoid Maintenance Fee – $1,000
  5. Interest Earned on Daily Collected Balance (Compounded Monthly)
  6. Monthly Maintenance Fee – $8 (If Minimum Balance is Not Maintained)
  7. Unlimited Check Writing
  8. Free Presto ATM Transactions
  9. Free Image Statements
  10. Free Check Card
  11. Free Basic Checks or 50% Discount on Alternate Style
  12. Free Online Banking
  13. Free Online BillPay
  14. Free Money Orders
  15. Free Cashier’s Cheques
  16. Free Notary Service
  17. Withdrawal of CD Funds Without Penalty for Medical Emergencies (once annually up to  $50,000)
  18. $100 off Closing Costs on Home Equity Line of Credit
  19. .25% Discount on Consumer Loans.

 

Prime Performance Checking: 

This is an interest bearing account which rewards the customer with preferred rates, while offering the same premium features and benefits.

  1. Interest Bearing (Tiered Rates)
  2. Minimum to Open – $100
  3. Minimum Average Daily Balance to Avoid Maintenance Fee – $2,500
  4. Interest Earned on Daily Collected Balance (Compounded Monthly)
  5. Monthly Maintenance Fee – $12 (If Minimum Balance is Not Maintained)
  6. Unlimited Check Writing
  7. Free Basic Checks or 50% Discount on Alternate Style
  8. Free Notary Service
  9. Free Cashier’s Cheques
  10. Free Money Orders
  11. Free Telephone Banking
  12. Free Online Banking
  13. Free Online BillPay
  14. Free Presto ATM Withdrawals
  15. Free Image Statements
  16. $100 off Closing Costs on Home Equity Line of Credit
  17. .25% Discount on Consumer Loans

 

Free Business Checking

This is a comprehensive checking account option that offers all of the ease and convenience you look for in a checking account for your business.

  1. Minimum To Open – $100
  2. Minimum Average Ledger Balance To Avoid Maintenance Fee – $0
  3. Monthly Maintenance Fee – $0
  4. Night Drop Service
  5. Free Personal Account (Prime Preferred Checking) With First Order of Basic Checks    Free or 50% Discount on Alternate Style
  6. Free Telephone Banking
  7. Free Online Banking
  8. Free Online BillPay
  9. Free Image Statements
  10. Free Presto ATM Withdrawals
  11. Free Check Card
  12. No Charge Transactions – 150 (.25¢ Each Thereafter) 250 (.25¢ Each Thereafter) With a Depository Relationship of$50,000 in Collected Balan

 

Personal savings

Have you thought about your retirement savings strategy? A savings account can be the building block to a solid financial future. Whatever your savings goal, you want to know your money is safe, secure, and there when you need it.

Prime Savings:

Our regular savings account allows convenient access to your money, and is designed to offer a competitive deposit rate.

  1. Minimum to Open – $50 Minimum Average Daily Balance to Avoid Maintenance Fee – $300
  2. Interest Earned on Daily Balance Method (Compounded Monthly)
  3. Monthly Maintenance Fee – $5
  4. Withdrawals Permitted – Three per Month
  5. Excessive Withdrawal Fee – $3 for Each Withdrawal in Excess of Three.

 

Prime Money Market:

Our Money Market account increases the earning power of your money but also allows for easy access to your funds. This account offers interest rate tiers, so the higher your balance, the more interest you earn.

  1. Tiered Interest Rates Minimum to Open – $1,000
  2. Minimum Average Daily Balance to Avoid Maintenance Fee – $1,000
  3. Interest Earned on Daily Balance Method (Compounded Monthly)
  4. Monthly Maintenance Fee – $10
  5. Unlimited In-Person Transactions and Withdrawals
  6. Six Withdrawals Permitted Per Month (Three by Check)
  7. Excessive Withdrawal Fee – $10 Each Withdrawal in Excess if Six

 

Prime Pals

Our Prime Pals savings account is designed to impress upon kids the value of saving money. Children will learn about financial responsibilities through a fun and interactive program

  1. Minimum to Open – $20 No Monthly Maintenance Fee
  2. No Minimum Balance Required
  3. Interest Earned on Daily Balance Method (Compounded Monthly)
  4. Free Gift When Opened
  5. At Age 18 the Account Converts To a Regular Savings
  6. Receive an Account Contribution for Qualifying Referrals
  7. Withdrawals Permitted – Three per Month
  8. Excessive Withdrawal Fee – $3 for Each Withdrawal in Excess of Three it.

 

Business savings

Let your money work for you.  Our Business Savings accounts designed to offer competitive rates of interest on your hard earned money.  Whatever your savings goal, you can rest assured that your money is safe, secure and there when you need.

 

Nautilus Business Savings:

This is a traditional savings account designed with the small business in mind.  The Nautilus Business Savings allows for easy access to your funds, while providing a strong foundation for an aggressive savings plan

  1. Minimum to Open – $100 Minimum Average Ledger Balance To Avoid Maintenance Fee –  $1,000
  2. Interest Earned on Daily Collected Balance (Compounded Monthly)
  3. Monthly Maintenance Fee – $8
  4. Transactions Permitted – Three Per Month
  5. Excessive Withdrawal Fee – $3 Each Withdrawal

 

Business Money Market

The Business Money Market  account is available to all businesses who wish to earn a higher rate of interest on their deposits.  This account offers interest rate tiers, so the higher your balance, the more interest you earn.

  1. Open to All Businesses
  2. Tiered Interest Rates
  3. Minimum to Open – $1,000
  4. Minimum Average Ledger Balance to Avoid Maintenance Fee – $2,500
  5. Interest Earned on Daily Collected Balance (Compounded Monthly)
  6. Monthly Maintenance Fee – $10
  7. Unlimited In Person Transactions and Withdrawals
  8. Six Withdrawals Permitted Per Month (Three by Check)
  9. Excess Withdrawal Fee – $10 Per Withdraw

 

Personal account services

We understand that time is money. Our goal is to make your banking experience fast, convenient and efficient. We offer a variety of account services which are designed to create value by reducing the amount of time you spend performing monotonous banking activities.

 

Prime Bank Check Card

Our Check Card works like a check and an ATM card, with funds deducted directly from your account. Not only is it more convenient, but it has the added features of safety and security. It   significantly reduces the number of checks you write and the amount of cash you carry.

VISA or MasterCard Credit Card

Our VISA or MasterCard Credit Card will afford you the flexibility you deserve when it comes to making purchases. You can feel confident with your purchases while relying on the convenience and protection you demand.

Direct Deposit

Save yourself a trip to the bank. Have any recurring payment deposited electronically to your   account. This service is ideal for payroll checks, interest payments, Social Security or any other   government payments. It is safe, secure, and gives you access to your money at the start of the   business day.

Overdraft Protection

Avoid the fees and hassles associated with overdrawing. With our Overdraft Protection service   you can link your checking account to another account.

Online Banking

With Online Banking you can conduct much of your banking from your home or office. You can   view your account history, transfer funds between accounts, order checks, and much more. You can do all of these things with peace of mind knowing that the process is completely safe and secure.

Online BillPay

Banking becomes so much easier and more convenient with Online BillPay. You can pay your bills in just a few clicks. This service significantly reduces the number of checks you write and saves on postage. This service is completely safe and secure, guaranteed.

 

Business account services

We understand that time is money.  Our goal is to make your banking experience fast, convenient and efficient.  We offer a variety of account services which are designed to create value for your business by reducing the amount of time you spend performing monotonous banking activities.

Prime Bank Check Card

Our Check Card works like a check and ATM card, with funds deducted directly from your account.  Not only is it more convenient, but it has the added features of safety and security.  It significantly reduces the number of checks you write and the amount of cash you carry.

VISA or MasterCard Credit Card

Our VISA or MasterCard Credit Card will afford your business the flexibility it deserves when it comes to making purchases.  You can conduct your business while relying on the convenience and protection your company demands.

Online Banking

With Online Banking you can conduct much of your banking right from your office.  You can review your account history, transfer funds between accounts, order checks, and much more.  You can do all of these things with peace of mind knowing that the process is completely safe and secure.

Optional Account Services

We understand that your business wants to make the best use of time and money.  We offer a variety of cash management products and services to provide you with flexibility and convenience while improving your operational efficiency.

Online Bill Pay

Banking becomes so much easier and more convenient with our Online BillPay.  You can pay bills in just a few clicks.  This Service significantly reduces the number of checks you write and saves on postage expense.  This service is completely safe, secure, and guaranteed.

Lockbox Service

This service is designed to help accelerate the collection of receivables.  Customer payments are collected and processed, and then deposited directly into your Prime Bank account.

Sweep Account

This service allows your business the ability to maximize cash flow by earning interest on excess funds.  Your end-of-day funds are automatically swept into an interest bearing money market account.

Revolving Line of Credit

Get your cash when you need it. We offer a variable-rate line of credit which provides your business with ready cash to meet short-term financing needs. Because we are locally owned and managed, we can tailor our products and services to meet your needs.  Your business is unique, your bank should be, too.

Conclusion: We can say the discussion that prime bank is most significant for business. It provides many loans in various sectors. So, Prime bank is committed to being your first choice for financial services by providing responsive solutions and competitively priced products that are delivered with exceptional service.