General Banking and HRM Practices with Special Reference to IFIC Bank Ltd (Part 2)
Subject: Banking | Topics:

Public banks are ones that are fully or partially owned by the government of that country. A private bank is one that is owned by an individual or by a group of people. The banking system of Bangladesh is dominated by the 3 Nationalized Commercial Banks, which together controlled more than 54% of deposits and operated 3388 branches (54% of the total) as of December 31, 2004. The nationalized commercial banks are:

1. Sonali Bank

2. Janata Bank

3. Agrani Bank

Janata Bank Limited

Janata Bank Limited operates as a state commercial bank. It was founded in 1972 as a result of merger between United Bank and Union Bank. Janata Bank Limited is based in Dhaka, Bangladesh.

Janata Bank Limited (JB) is the second largest commercial bank in terms of net worth with 850 branches and fully owned by Government of Bangladesh. The mission of the bank is to actively participate in the socio-economic development of the nation by operating a commercially sound banking organization.

Immediately after the independence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were nationalized and renamed as Janata Bank. Janata Bank is a state owned commercial bank which was Incorporated as a Public Limited Company on 21 May 2007 as per Companies Act 1994 and took over the business of the then Janata Bank with all of its Assets, liabilities, right, power, privilege and obligation on a going concern Basis through a vendor agreement signed between the Peoples Republic of Bangladesh and Janata Bank Limited on 15 November 2007 with a retrospective effect from 1 July 2007. All of its operational activities aregoverned by the Bank Companies Act 1991.

The Bank provides all kinds of commercial banking services to its customers including accepting deposits, extending loan & advances, discounting & purchasing bills, remittance, money transfer, foreign exchange transaction, guarantee, commitments etc. The principal activities of its subsidiary are to carry on the remittance of hard-earned foreign currency to Bangladesh. Janata Bank Ltd. has a plan to switch over to a multi disciplinary financial institution by conducting Merchant Banking business and Islamic Banking operation.

Janata Bank Limited intends to raise $145 million through an initial public offering (IPO). Janata submitted its application to the market regulator this week and ICB Capital Management is underwriting the share sale. Janata will be the second state bank to list on the exchange after Rupali Bank.


Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000 million (approx. US$ 289.85 million), paid up capital of Tk. 5000.00 million, reserve of Tk.8202.00 million and retained surplus Tk. 2737.00 million. The Bank has a total asset of Tk. 282423.00 million as on 30th November 2009. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15th November, 2007 the bank has been corporative and renamed as Janata Bank Limited.    

Janata Bank Limited operates through 859 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world.

The Bank employs more than 13(Thirteen) thousand persons.

The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization,  providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners.

The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors are representatives from both public and private sectors.

The Bank is headed by the Chief Executive Officer & Managing Director, who is a reputed banker.

The corporate head office is located at Dhaka with 10 (ten) Divisions comprizing of 37 (thirty seven) Departments.


To become the effective largest commercial bank in Bangladesh to support socoi-economic development of the country and to be a leading bank in South Asia.


Janata Bank Limited will be an effective commercial bank by maintaining stable groth strategy, delivering high quality products, providing excellent customer service through an experienced management team and ensuring good corporate governance in every step of banking network.

Board of Directors

Name of IndividualSponsors/DirectorsDesignationDirectorship/Sponsorship/Ownershipwith other Companies
1Dr. Abul BarkatChairmanHuman Development Research Centre,Honorary Chief Adviser
2Mr. Md. Enamul HaqChoudhuryDirectorNil
3Mr. Chowdhury AbdulQuayumDirectorNil
4Dr. Jamaluddin Ahmed,FCADirectorHoda Vasi Chowdhury & CO, Partner
5Dr. Fahmida KhatunDirectorNil
6Mr. Fazle KabirDirectorNil
7Mr. Md. NazibarRahmanDirectorUshan Enterprise, ChairmanRajbari Poultry, Managing DirectorAdvanced Care, Managing Director
8Advocate BalaramPodderDirectorPodder Enterprise, Proprietor
9Mr. Dabir Uddin AhmedDirectorNil
10Dr. Md. Abdur RoufSarderDirectorBangladesh Medical College & Hospital,Deputy DirectorSouth Asian Hospital, Deputy Director
11Mr. A.K.M. ShahjahanKamalDirectorAsia Construction, ProprietorMabfen Trade International Ltd.,Chairman
12Dr. R M DebnathDirectorNil


Janata Bank Limited provides credit facilities to productive and priority sectors under the guidelines of Bangladesh Bank. The bank has so far sanctioned credit to 4685 various types of industries since inception. Janata Bank has been financing in rural areas for various firm and off-firm activities. Since commencement, Janata Bank has sanctioned various credit facilities for financing 39 program under rural credit for poverty alleviation. Attaching due importance to the socio-economic necessity, the bank undertakes special credit and micro credit program’s with particular emphasis to SME sector with a view to create employment and poverty alleviation. The important financing schemes are:

The main focus of Janata Bank Limited Credit Line/Program is financing business, trade and industrial activities through an effective delivery system.

  • Janata Bank Limited offers credit to almost all sectors of commercial activities having productive purpose.
  • The loan portfolio of the Bank encompasses a wide range of credit programs covering about 200 items.
  • Credit is also offered to 15 (fifteen) thrust sectors, as earmarked by the Government, at a reduced interest rate to develop frontier industries.
  • Credit facilities are offered to individuals, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc.
  • Loan is provided to the rural people for agricultural production and other off-farm activities.
  • Loan pricing system is customer friendly.
  • Prime customers enjoy prime rate in lending and other services.
  • Quick appreciation, appraisal, decision and disbursement are ensured
  • Credit facilities are extended as per guide-lines of Bangladesh Bank (Central Bank of Bangladesh) and operational procedures of the Bank. OF SONALI BANK

Sonali Bank Limited, the largest & leading commercial bank of the country, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. A fully state-owned enterprise, the bank has been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. When it was established, Sonali Bank had a paid up capital of 30 million taka. In 2001, its authorized and paid up capital were Tk 10 billion and Tk 3.272 billion respectively. The bank’s reserve funds were Tk 60 million in 1979 and Tk 2.050 billion on 30 June 2000. Sonali Bank Limited singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself. Sonali Bank Limited is governed by a Board of Directors consisting of 9(nine) members headed by a Chairman. The Bank is headed by the Chief Executive Officer & Managing Director, who is a well-known Banker and a reputed professional. The head office of the bank along with its corporate structure is located at Motijheel, Dhaka, the main commercial center of the capital. Sonali Bank Limited extends all the major personal banking facilities and services to its customers with its skilled manpower and largest network of around 1182 branches covering all the urban and remote rural areas of Bangladesh.


SB is one of the largest public banks in Bangladesh. Recently it is going to introduce shares. It operates through One Head Office, 30 main divisional offices, 6 General Manager’s Office, 42 Principal Office, 19 Regional Office and 198 fully computerized branches, ensuring best possible and fastest services to its valued clients and efficient management. On 30 June 2000, Sonali Bank had 1,297 branches within the country and of them, 421 were in the urban areas and 876 were in rural areas. In the early 1990s, the bank had 8 overseas branches, 7 in UK and 1 in Calcutta. The branches in UK were recently closed. In 1994, the bank established in New York a full-fledged subsidiary company of the name the Sonali Exchange Company Inc. to expand its participation in international banking. Bangladeshis working in USA send remittances through this company, which operates with its main office at Manhattan, New York and branches/booths at Brooklyn, Estoria, Jackson Height and Los Angeles.


Socially committed leading banking institution with global presence.


Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives, creating value for the stakeholders and contributing towards socio-economic development of the country.


As a regulated bank, we are able to offer bank account facilities to our customers. A range of deposit and saving accounts is available to suit most needs. Credit balances earn interest unless the customer stipulates otherwise. By prior arrangement with the Bank, deposits of large amounts can be invested in the money market for a fixed period at appealing rates of interest (negotiable).

During recent times Bangladesh has emerged as a potential economic force. It is now increasingly recognized that economic development on a fast track will largely depend on the accelerated development of the country’s exports. With this aim in view, we have an experienced foreign trade department to facilitate export/import business through us.

Our primary objective is to provide a prompt and efficient service to our customers and community. We are well aware of the fact that customer support is our future.


The management of Sonali Bank is vested in a 7-member board of directors appointed by the government. The managing director is the chief executive. He is assisted by a deputy managing director, six general managers, and other senior executives. The general managers are in charge of the bank’s branches in the headquarters of the six administrative divisions of the country namely, Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. The bank has 32 departments at its head office including a training institute in Dhaka. On 30 June 2000, the total number of employees of the bank was 26,085.

The Board of Directors is the top of Management, which is constituted in tems of the Bangladesh Bank’s Nationalization Order 1972. Management hierarchy of Sonali Bank is given blow:

Board of Directors (BOD)

Managing Director (MD)

Deputy Managing Director (DMD)

General Manager (GM)

Deputy General Manager (DGM)

Assistant General Manager (AGM)

Senior Principal Officer (SPO)

                Principal Officer (PO)    →             Office


Sonali Bank performs all traditional banking functions including deposit mobilization and lending. The bank discharges the treasury functions as the agent of the Bangladesh bank. It collects tax, stamp duty and registration fees, operates special savings accounts, pays salaries to the teachers of schools, madrasahs, and colleges and pension to retired government employees. The bank provides funding to some income generating and economic development projects namely, Poverty Alleviation Credit Programmed, Female Special Credit Programmed, and Agro-based Industrial Credit Programmer in the rural areas. It has a large participation in foreign exchange business and off-balance sheet activities. The total volume of foreign exchange business handled by the bank in 1979 was Tk 14.91 billion and in 2000, it was Tk 67.847 billion, 25.87% of which was related to exports, 32.2% to imports, and 41.93% to remittances. At present, the bank has correspondent relationships with 380 foreign banks/bank offices throughout the world.

Sonali Bank is the largest nationalized commercial bank of Bangladesh. It has 1181 branches throughout the country. It has also two overseas branches. The Head Office of the bank is located at the Motijheel commercial are, Dhaka. The Divisions are headed by the DGMs and the departments are by AGMs. There are also many sections under every department in the Head Office. A DGM is the chief of the Principal office and an AGM usually runs a regional office. Principal offices are the local points of the bank’s administrative zone in the districts. The regional offices are under control and supervision of principal offices. The offices are situated at thana level within the districts. The corporate branches are nearly equivalent to the GM office and usually headed by the DGMs. They provide all the banking services such as general banking, loans & advances etc.

Functional hierarchy of Sonali bank is given below:

Head Office

GM Office

Principal Office

Regional Office

Branch Office


The Principal Activities of the bank are:

a) To facilitate and handle all kinds of commercial banking services to its

Customers authorized by Bangladesh Bank.

b) To perform Government Treasury functions and also act as an agent of

Bangladesh Bank.

c) The export and import trade of Bangladesh with other countries under various


d) International Banking.


A subsidiary company named Sonali Exchange Co. Inc. was incorporated on 4 April, 1994 under laws of the State of New York, Department of State, licensed on 17 October, 1994 by the State of New York Banking Department and commenced operation as an International Money Remitter from 12 December, 1994

Associate .On 4 November 1998, Sonali Bank notified the Financial Services Authority of the UK of its intention to voluntarily surrender the banking license for Sonali Bank UK branch with effect from June 30, 1990. Sonali Bank UK branch had extinguished all its retail deposits by 30 June, 1999 and is not permitted to accept any further deposits from that date. But a representative was there till 7 December 2001. A subsidiary money remitting company under the name of Sonali Trade and Finance (UK) Limited has been incorporated under the UK companies Act 1985. The company has been allowed to start its function as a bank from 7 December 2001 (the operation activities was started on 10 December 2001) by the Financial Services Authority of UK changing its name as Sonali Bank (U.K.) Ltd. 51% share capital of the newly renamed company is held by the Peoples’ Republic of Bangladesh and remaining 49% by Sonali Bank.


This is a very much crucial section for each business concern. As such this is a crucial department for a commercial bank. Records of all the transactions of every department are maintained here. Accounts section verifies all financial amounts and contents of transactions. Every working day all the accounts are balanced and reconciled to remove any discrepancy.

The overall activities of accounts section are as follows:

  • Record all transactions in the cash book.
  • Record all tractions in general and subsidiary ledger.
  • Prepare daily fund function, weekly position, periodic statement of affairs etc.
  • Prepare necessary statements for reporting purpose.
  • Make salary statement and pay salary.
  • Pay all expenditures on behalf of the branch.
  • Branch to branch fund remittance and support for account treatment.
  • Budgeting for branch.
  • Make charges for different type of duties.

Sonali bank ltd started with a vision to be the most efficient financial intermediary in the country and it believes that the day is not far off when it will reach its desired goal. Sonali Bank Limited looks forward to a new horizon with a distinctive mission to become a highly competitive modern and transparent institution comparable to any of its kind at home and abroad.

Agrani Bank


Agrani Bank, a leading nationalized commercial bank, came into being on 26th March, 1972 with the promulgation of presidential Order no 26 of 1972. Under the order Agrani Bank took over assets and liabilities of the erstwhile Habib Bank Ltd and Commerce Bank Ltd, functioning in the eastern Pakistan. The bank started its operational activities with an authorized capital of Tk 30 million and paid capital of Tk 10 million. The Bank enjoys the status of a company and it functions according to the Banking Company Ordinance and to the regulations of Bangladesh Bank (the Central Bank) and upon such directions as may be changed from time to time by the Government.


Simply the vision of Agrani Bank is mass banking. At the time of formation it changed its motto from class banking to mass banking. Expedite the economic growth of the country through spreading the banking services to the doorsteps of mass people so that they get institutional financial help and participate in the economic activities of the country.


  • To be the trendsetter for innovative banking with excellence and perfection.
  • To be the best performing bank in the country and the region.
  • To exceed customer expectations through innovative financial products & services and establish a strong presence to recognize shareholders’ expectations and optimize there rewards through dedicated workforce.
  • Keeping ahead of other competitors in productivity and profitability. To attain budgetary targets fixed in each area of business.


Like other business organization the core desire of Agrani Bank is to maximize the profit through saving & loaning money to the life of the common people.

The Objectives of the Agrani Bank is given below:


As a nationalized commercial organization, Agrani Bank belongs to the people. It implies that it stands for meeting the banking needs of the mass people of the society.


In compliance with the very nature of the organization, the objective in mind the bank aims at excelling quality and diversified services. To fulfill its mission Agrani Bank has its main objectives as followings:

  • To provide banking services to people.
  • To earn profit.
  • Act as a media of exchange.
  • To contribute to gross domestic product (GDP).
  • Maintain a satisfactory deposit mix.
  • To help to grow entrepreneurship.
  • Increase loan portfolio diversification and geographical coverage.
  • To mitigate unemployment problem.
  • Provide finance specialized services to the export.
  • To help to boost economic development.


  • Agrani Bank is a service organization. It will live and prosper on the quality

of service it provides. Hence quality of service must be maintained at all levels.

  • Banks image with people should be identified on the quality and diversity of

services that the people aspire to receive.

  • As a dynamic bank it will remain in search of new field of activity in line with people economic need. Suggestions by customers and other people shall receive proper attention so as to help identify new activity or improve upon present activities.
  • The bank shall maintain healthy competition with other banks aiming at

excelling services in meeting economic needs of the people.


The management of the bank is vested in a 7-member board of directors appointed by the government. The managing director is the chief executive and he is assisted by deputy managing director, six general managers and other senior executives. The general managers are in charge of the bank’s branches in six administrative divisions of the country namely Dhaka, chittagong, rajshahi, khulna, sylhet and barisal. The bank has 22 departments at its head office, including a training institute at Dhaka. Total number of employees of the bank was 13269 on 30 June 2000. Up to 31 December 2000, the Bank had 903 branches, of which 586 were in rural areas and 38 were authorized to deal in foreign exchange transactions.


Organizing is the management function that involves the process of determining what task are to be done, who is to do them, how the task are to be grouped who reports to whom and where decisions are to be made. Organizing is the process of creating an organization’s structure. Organizational structure is the formal framework by which job task are divided, grouped and coordinated.

Agrani Bank monitors its operations through a performance budget. It has a marketing intelligence unit. It conducts a programmed of human resources development through training and motivation and has adopted some important policy measures, including introduction of Lending Risk Analysis, suggested by the Financial Sector Reform Programmed. The business policies of the bank in 1990s included fulfilling capital adequacy requirements, mobilizing large amount of deposits, and making investment of assets in more profitable ways. The bank has diverted its activity toward off-balance sheet items during the last decade as a part of its strategy to increase its area of operation and non-interest based income.


Foreign banks’ role in this country has not remained limited only into employment generation; rather foreign banks play a proactive role in terms of transferring the best practices, developing human resources and providing financial solutions. Foreign banks have introduced new financial products like syndication, securitization, bonds, hedging, and derivatives the financial instruments which were unheard of in the local markets even a few years back. Foreign banks still are ahead in the local market in terms of structuring financial products keeping customer benefits as `centre of the plate’. Foreign banks retained their pioneering role in the local market over the decades. The very first syndication facility in the market was done by a foreign bank, same is the first merger and acquisition deal in the country, first agricultural loan syndication. The securitization in micro-credit receivables was done by a foreign bank. The largest IPO in the history of Bangladesh capital market was launched by a foreign bank. Even the foreign banks are now partnering with the Central Bank for determining the sovereign rating of Bangladesh. The regulators always found foreign banks beside them in shaping policies. Foreign banks have significant contribution in terms of developing risk management guidelines and promoting risk management culture in the banking sector.

Standard Chartered 


The word   MANAGEMENT originated form the Latin word “Mangier” which means “to train up the horses”. But by the passage of time, it relates human being in lieu of horses. So the meaning of the word ‘MANAGEMENT’ is “to handle” the overall activities of the organization.

The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1969 — The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa.
The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.
In those early years, both banks prospered. Chartered opened its first branches in Bombay, Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business.


Standard Chartered Bank started its business in Bangladesh in 1948, opening its first branch in the port city of Chittagong. The bank increasingly invested in people, technology and premises as its business grew in relation to the country’s thriving economy. At present the bank has 6 offices in Dhaka Chittagong and Sylhet, including the country’s only offshore banking unit inside the Dhaka Export Processing Zone at Savar.

Extensive knowledge of the market and essential expertise in a wide range of financial services underline our strength to build business opportunities for corporate and institutional clients at home and abroad. Continuous upgrading of technology and control systems has enabled the bank of offer new services, which include unique ATMs and Phone banking.

Standard Chartered services in Bangladesh, ranges from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services.


Intelligent insights

We bring international best practice combined with in-depth industry and market knowledge to the table and leverage these strengths in developing innovative and effective solutions.

Global network, local presence

We work seamlessly across borders and product groups, giving you full access to the resources of our bank so you gain a 360 degree strategy.

Unparalleled access to growth areas

With more than 150 years of emerging market experience, our understanding of local markets is hard to match, particularly in growing markets like India, China, South Korea, the Middle East and Africa.

Proven track record

Our team has a track record in matching the diversity of client requirements with the right financial solution.

Award-winning solutions  

Our skills are respected by clients. Our solutions are recognised as award winners by our industry and peers.


To be the preferred provider of Islamic financial products in the market.


To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Shariah compliant products and solutions, and by adopting and living our core values.


Creativity belongs to those of us who are excited by challenges and engage them with fresh thinking and an open mind. Creative thinkers are not limited by convention but allow their minds to soar beyond predictable solutions.

How we respond to our customers will influence their belief in our commitment to them. A proactive response is often unexpected and more effective for that. It clearly demonstrates our willingness to go beyond the expected.

As a member of the global village we view the world from the widest perspective. We are all global citizens and believe the world is full of new opportunities and exciting possibilities. We also deliver world-class products and services.

Being courageous is about confidently doing what’s right. Often the task may seem insurmountable but with courage and tenacity the odds can be overcome. A truly courageous act both inspires and builds character.

Trustworthy Trust is the foundation of every successful relationship. We trust, because we believe in the sincerity of the promise. Building trust can take forever. Losing trust takes only moments.


HSBC was born from one small idea – a local bank serving local needs. In March 1865, HSBC opened its doors for business in Hong Kong and today it welcomes customers all over the world. The intervening years have formed the character of HSBC. Its experiences have created its core strengths of resilience, adaptability and capability for innovation. A glance at its history explains why it believes in capital strength, strict cost control and in building long-term relationships with customers. HSBC has weathered change in all forms – revolutions, economic crises, new technologies – and has adapted to survive. Growth has come organically and through strategic acquisitions, and these purchases have brought their own strengths and cultures to the Group. The resulting corporate character of HSBC enables it to meet the challenges of the financial world of today and tomorrow.

HSBC’s name is derived from The Hong Kong and Shanghai Banking Corporation Limited, the founding member of the modern Group. The bank owed its origins to the business communities of the China coast in the 1860s. At that time, the finance of trade in the region was not well developed and most transactions were still handled by the European trading houses, or hongs, rather than by professional banks. By the early 1860s, local businessmen needed larger and more sophisticated facilities. In Hong Kong, in particular, business leaders required specialist banking services – preferably from a bank that was locally owned and managed. The founding of the bank in 1865 answered this need. The new company was the inspiration of Thomas Sutherland, then the Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company, who produced a prospectus for a locally based bank operating on sound ‘Scottish banking principles’. The prospectus attracted the support of a broad spectrum of Hong Kong interests, including American and Indian trading houses as well as European firms, and the initial capital of HK$5 million was quickly taken up in Hong Kong, Shanghai and Calcutta.

HSBC believes in Five Key Brand Values:

  • Perspective
  • Progressive
  • Responsive
  • Respectful
  • Fair


The HSBC Asia Pacific group represents HSBC in Bangladesh. HSBC opened its first branch in Dhaka on 17th December, 1996 to provide personal banking services, trade and corporate services, and custody services. The bank was awarded ISO 9002 accreditation for its personal and business banking services, which cover trade services, securities and safe custody, corporate banking, Hexagon and personal banking. The Hong Kong and Shanghai Banking Corporation Bangladesh Ltd. primarily limited its operations to help garments industry and commercial banking. Letter, it is extended to pharmaceuticals, jute and consumer products. Other services include cash management, treasury, securities, and custodial service.

Realizing the huge potential and growth in personal banking industry in Bangladesh, HSBC extended its operation to the personal banking sector in Bangladesh and within a very short span of time it was able to build up huge client base. Extending its operation further, HSBC opened a branch at Chittagong, two branch office at Dhaka (Gulshan and Motijheel) and an offshore banking unit on November 1998. Another branch was opened at Dhanmondi on 1st March, 2003. It further expanded its banking services by opening up branches in Uttara, Banani, Lalbag and Sylhet.


HSBC’s strategy is to continue to invest primarily in the faster-growing, emerging markets and focus on business models that have international connectivity and scale advantage. Central to this strategy is the policy of maintaining HSBC’s capital strength and strong liquidity. The strategy is to be executed by:

*Leveraging HSBC’s brand and global networks to reach new customers and offer further services to existing customers.

*Using common approaches through One HSBC to make it easier for our customers to do business with HSBC and reduce the costs of serving them.

*Aligning objectives and incentives to motivate engage and reward employees in delivering the strategy.


“We aim to satisfy our customers with high quality service that reflects our global image as the premier international bank.”


“To generate greater return than the average return of peer group financial institutions and increase shareholder value significantly”.


HSBC’s objectives are to provide innovative products supported by quality delivery of systems and excellence in customer services, to train and motivate staffs and to exercise social responsibility. By combining regional strengths with its group network, HSBC’s aim is to be the one of the leading banks in its principle markets and achieve sustained earnings growth, in the process continuing to enhance shareholder value.


All of HSBC’s activities are centered on few group values which are provided below:

*Long-term ethical client service

*Confident and ambitious sense of excellence

*Capable of creativity and strong marketing

*High productivity through teamwork

*International character, conservative orientation.


Moreover, HSBC is committed to five core business principles which form the nucleus of the group’s functions:

*Outstanding customer service

*Effective and efficient operations

*Strong capital and liquidity

*Conservative lending policy

*Strict expense discipline

HSBC’s reputation is founded on adherence to these principles and values. All actions taken by a member of HSBC or staff member on behalf of a Group company should conform to them.


HSBC activities are performed through functional departmentalization. So, the departments are separated accordingly to the functions they perform (HR, Marketing, Personal Banking, etc.). there are 6 major functional departments at HSBC:

  • Human Resources Department
  • Financial Control
  • Personal Banking
  • Commercial Banking
  • Market
  • Risk

Within these major departments there are some other subsidiary departments that allow smooth operation of their own major departmental function which are-

  • Operations
  • Treasury
  • Institutional Banking
  • Compliance
  • Trade & Supply Chain

The trend of banking has been changed all over the world. With the force of modern economic development the activities of banks are turns to customer orientation. That flow of change also making impact over the economy of Bangladesh. Banking system of the country getting customer oriented with the pace of modern economy. Labor plays vital role in bringing about the process of production/business in motion. Labor expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization.

Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. The labor expects wages from the process. To support the growth of good practice of compensation design in our country specific guidelines is needed from Government and regulatory bodies. The sound compensation system is hallmark of organization’s success and prosperity.

The HSBC’s philosophy-“” has been precisely an essence of the legend of success in the world. The bank has proved to be successful by offering quality and timely services to its customers. Market is getting competitive. HSBC need to concentrate on the fair compensation. An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. In the upcoming days, for maintaining the accelerated pace of business growth and operating performance, the bank will have to adopt several policies to upgrading human resource quality and research to meet the challenge of expansion and growth. However; the success of the bank will depend on proper implementation of compensation plan, and with the support of skillful, talented and happy workforce.

The Function of IFIC Bank Ltd.


International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 percent were held by the sponsors and public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the public holds the rest. The Bank is being managed by a group of highly experienced professionals with diversified experience in finance and banking.  The Management of the bank constantly looks after customers’ satisfaction and believes that a satisfied customer is a great Ambassador. The bank has already ranked as one of the quality service providers & is known for its reputation. The offers the full range of banking services for personal and corporate customers, covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. All activities of the Bank including its products and services are mainly for different economic groups of Bangladesh at home & abroad. Bangladeshi expatriates living abroad in different countries form a strong economic group who contribute greatly towards the economic development of the country.


Hierarchy of the Management of IFIC Bank Ltd


IFIC Bank Limited is managed by highly professional people. The management of the bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof. IFIC Bank Limited has already achieved tremendous progress within a short period of its operation. The Bank is already ranked as one of the quality service providers and known for its reputation.

Board of Director

01. Mr. Salman F Rahman

Honourable Chairman

02. Mr. Mohammad Lutfar Rahman

Honourable Director

03. Mr. Aminur Rahman

Honourable Director

04. Mr. Syed Anisul Huq

Honourable Director

05. Mr. Mohammed Nayem Syed Honourable Director

6. Mr. S.M. Faruqi Hasan

Honourable Director

07. Mr. Tanim Noman Sattar

Honourable Independent Director

 08. Mr. Mahmudul Huq Bhuiyan

Honourable Director

 09 Mr. Arastoo Khan

Honourable Director

 10. Mr. Syed Monjurul Islam

Honourable Director

Management of IFIC  

          01. Mr. Mosharraf Hossain

           Managing Director

           02. Mr. Mohammad Abdullah

Deputy Managing Director

 03. Mr. A.K.M. Mozharul Hoque

Executive Vice President & Company Secretary

04. Mr. Syed Zahidul Islam

Senior Executive Vice President & Head of Human Resources Division

 05. Mr. S.M. Abdul Hamid

Senior Executive Vice President & Head of Finance and Accounts Division

06. Ms. Zaitun Sayef

Senior Executive Vice President & Head of Training & Research Division

 07. Mr. Shaikh Rashid Ahmed

Executive Vice President & Head of Treasury & International Banking Division

08. Mr. Narayan Chandra Roy

Executive Vice President & Head of Internal Control and Compliance Division

09. Mr. Fariduddin Al Mahmud

Executive Vice President & Head of Corporate Banking & Marketing Division

10. Mr. Wakar Hasan

Executive Vice President & Head of Credit Risk Management Division Senior

Divisional of IFIC

01. Company Secretary’s Division          

Mr. A.K.M. Mozharul Haque


 02. Human Resources Division

Mr. Syed Zahidul Islam


03. Finance & Accounts Division

Mr. S.M. Abdul Hamid


04. Training & Research Division

Ms. Zaitun Sayef


05. Credit Risk Management Division

Mr. Wakar Hasan


06. Corporate Banking & Marketing Division

Mr. Fariduddin Al Mahmud


 07. Treasury & International Banking Division

Mr. Shaikh Rashid Ahmed


08. Internal Control & Compliance Division

Mr. Narayan Chandra Roy


List of Branch

IFIC Bank has 87 Branches in Bangladesh and average employee of total branch is 2500.

¯  List of branches in Dhaka division:

Sl.Branch Name
09Elephant Road
10Naya Paltan
11Kawran Bazar
16North Brook Hall Rd.
17Nawabpur Road
36SME Service Centre, Mirpur
37SME Service Centre, Tongi
39Stock Exchange
42Progoti Sarani
43SME Service Centre, Nawabgonj
44SME Service Centre, Dholaikhal

  List of branches in Chittagong division:

Sl.Branch Name
47Terri Bazar
48Noju Miah Hat
50Chawk Bazar
51Shah Amanat Market
52Shikh Mujib Road
53Cox’s Bazar
60CDA Avenue
61Modam Bibir Hat

List of branches in Rajshahi division:

Sl.Branch Name
68Chapai Nawabganj

List of branches in Khulna division:

Sl.Branch Name
72Boro Bazar
78Sme Service Centre, Kaligonj

List of branches in Barisal division:

Sl.Branch Name

List of branches in Sylhet division:

Sl.Branch Name
81Beani Bazar
83Subid Bazar
85Moulvi Bazar (Dist)
87Goala Bazar

 Table 2: List of Branch


Accounts can be classified into two types:


Current account is convenient for the business persons who needs frequent transaction. In case of Current Account no interest is given to the account holder. There are current accounts for individual, joint current account, proprietorship current account, partnership current account, and limited company current account. It is a running and active account, which may be operated upon any number of times during a working day. There is no restriction on the number and the amount of withdrawals from a current account.

Documentation: Proprietorship

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of account holder.
  • Signed and rubber stamp seal of the client.
  • National ID Card photocopy

Documentation: Partnership

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of account holder
  • National ID Card photocopy
  • Attested photocopy of Partnership deed.

Documentation: Private Limited Company

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of directors
  • National Id card photocopy
  • Certified copies of Memorandum and Articles of Associations
  • Certificate of Incorporation and copy of TIN certificate.
  • List of directors as per return of Joint Stock Company with signature
  • Resolution for opening account with the bank.

Documentation: Public Limited Company

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of directors
  • National Id card photocopy
  • Certified copies of Memorandum and Articles of Associations
  • Certificate of Incorporation
  • Certificate of Commencement of business and copy of TIN certificate.
  • List of directors as per return of Joint Stock Company with signature
  • Resolution for opening account with the bank.

Closing of Current Account

A customer’s account with a banker may be closed for the following circumstances:

(a)The customer may inform the banker in writing of his/her intension to close the account

(b) The banker may itself ask the customer to close the account when the banker find that the account is not been operated for a long time.

Formalities (When customer informs)

  • Application to Branch in charge for closing
  • Making the account balance nil
  • Signing the revenue stamp by the client
  • Payment of closing charge.
  • Surrender of the unused Cheque leaves by the bank
  • Closing of  the account by the bank

Formalities (When bank informs)

  • Bank communicates with the client if the account is not operated for six months and in case of non response account becomes a dormant account.
  • In case non operation for two years then the account becomes “inoperative” account.
  • If the current account paying in “Inoperative Current Account for more than one years then the account becomes an Unclaimed Deposit” account.
  • For withdrawal at any amount from that account, permission from head office or controlling office is required.


Saving Accounts are especially for the middle-income groups who are generating limited income and have the tendency to save to meet their future need and intend to earn an income from their savings. It aims at encouraging savings of non-trading person(s), institution’s society, clubs etc. by depositing small amount of money in the bank. 5.5% interest is paid to the accountholder. Both the elements of time and demand deposit are present in this account.

For opening a savings account these documentations are required:


  • Two copies of passport size photographs
  • National Id card photocopy
  • Introductory reference.
  • One choppy Photograph of Nominee  with
  • National Id card photocopy

Closing Formalities of Savings Account

Formalities for savings account opening and closing are same as current account.

Restrictions on SB Account:

  • Restriction on Withdrawals and Deposit
  • The number of withdrawals over a period of time is limited. Two withdrawals per week are permitted. But more than that no interest will be paid on rest amount for that month.
  • The total amount of one or more withdrawals on any date should not exceed Tk.20000.00


Double Return Deposit Scheme (DRDS)

IFIC Bank is pleased to offer 8 ½ Years (Proposed) – Double Return Deposit Scheme (DRDS) with special feature:

Minimum Deposit



Tk. 25,0008 ½ Yrs.
Double return after 8 ½Years.
(subject to deduction of Tax & Excise duty)

Table 4: Double Return Deposit Scheme

Special Feature

 If you require to have your money back after completion of 1(one) year, IFIC will not deprive you from interest for pre-encashment. For each completed years and subsequent completed years you will get interest @8.50% p.a. (proposed).

Credit Facility

You can avail Credit facility up to max. 90% of the deposited amount against registering Lien on Instrument with the issuing Branch.

Three Years Deposit Plus (3YDP)

IFIC Bank is pleased to offer Three Years Deposit Plus (3YDP) Scheme with special feature:

Deposit Amount


Amount payable after maturity

Tk. 50,000 or its multiple3Yrs.Tk. 64,183/- or its multiple
i.e. Tk 1,28,367/- per Lac
(subject to deduction of Tax & Excise duty)

Table 5: Three Years Deposit Plus

Special Feature

If you require to have your money back after completion of 6(six) months, IFIC will not deprive you from interest for pre-encashment. For each completed 6(six) months and subsequent completion of 6(six) months you will get interest @8.50% p.a. compounded at half yearly rest (Effective Rate 8.68% p.a.).

Credit Facility

You can avail Credit facility up to max. 90% of the deposited amount against registering Lien on Instrument with the issuing Branch.


Minimum balance is required in this account is Tk. 25,000 and interest is given to the depositors at the rate of 4%. It is also a time deposit account. The formalities for opening of this account are same to those required for current account. The only difference is that 21(Twenty one) days notice is to be given for withdrawal of any sum of money from Account.


These are the deposits, which are made with the bank for a fixed period specified in advance. It is purely a time deposit account. The bank does not maintain cash reserves against these deposits and therefore the bank offers higher rates of interest on such deposits. Interest is paid at rate determined by the length of the period for, with the deposit is made. Obviously, the longer is the period of deposit, the higher is the rate of interest.


The depositor has to fill up an application form wherein he/her mentions the amount of deposit, the period for which deposit is to be made and the name(s) in which the fixed deposit receipt is to be issued. In case of a deposit in joint names, the banker also takes the instructions regarding payment of money on maturity of deposit i.e. whether payable jointly or payable to survivor etc. the banker also takes the specimen signatures of the depositor(s). A Fixed Deposit Receipt is than given to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for payment. In this account no transaction are allowed and no Cheque book is issued. Customers are given Fixed Deposit Receipt only.


It is usually paid on the maturity of the fixed deposit. IFIC Bank Ltd, calculate the interest at each maturity date and provision is made on that “Miscellaneous creditor expenditure payable account” is debited for the accrued interest.

Types of Deposits (FDR)Deposit Rates
One month8.00%
Three month8.50%
Three months & above8.50%


In case of the premature FDR IFIC Bank Ltd, is not bound to accept the surrender of the deposit before its maturity date. In order to deter such a tendency the interest on such a fixed deposit is made a certain percentage les than the agreed rate. Normally savings bank deposit is allowed.


In IFIC Bank Ltd, the instrument is automatically renewed within 7 (Seven) days after the date of maturity if the customer does not come to encase the FDR. If the customers don’t want to renew automatically then they need to specify this option when they open that particular FDR.


This is another attractive scheme offered by this bank. Under this scheme the depositors can deposit a fixed amount to the bank and for their fixed amount they are entitled to earn monthly payment from the bank. This is an attractive scheme for the retired person. This is also a kind of FDR, but here the interest is given monthly to the customers. The deposit will be 50,000, to 10, 00,000, respectively.

The rate of interest is 8.4 %

  • Maturity is 03 years.
  • Liquidation of MIS
  • Tk.200 charge for premature encashment as out access duty.
  • Closing before 6 months no benefit will be providing.
  • Preachment between 6 months to 1-year interest is providing according to savings rate. – Pre encashment between 1 to 3 years savings interest are provide 1.00 + saving rate.

Monthly Income Scheme (MIS)

Deposit AmountMISMIS for senior citizens
3 YRS3 Yrs

Table 7: Monthly Income Scheme


Under this scheme the customers are to pay a certain amount of money at monthly interval up to a period of 3 to 5 years and after the period they will get the returns along with the full interest earned during the period and the principal amount. Most of the clients under this scheme are middle class and lower middle class people

  • Generally opened by small sever.
  • Minimum Amount Tk 500 and maximum Tk 50,000.
  • Interest rate 9.50%
  • Maturity 3 to 5 years.
Liquidation of PSS:
  • In case of premature encashment if the period is below 1 year then no interest will be provide.
  • If above 1-year interest will be given.

Main Features of 3 (Three), 5 (Five) Years pension saving scheme (PSS)

Payment after maturity

3 Years Term

5 Years Term

MonthlyInstallment TK.Amount payable After Maturity(Intt.Rate 9.50% p.a.00%)MonthlyInstallment TK.Amount payable After Maturity (Intt.Rate 9.50%)

 Table 8: Pension Saving Scheme (PSS)

The HR Policies and Practices in IFIC bank Ltd.


A human resource is a person or employee who staffs and operates a function within your organization. Read the definition of a Human Resource. Human resources are the people that staff and operate an organization. Read the definition of Human Resources.

Human Resource Management is the function within an organization that focuses on recruitment, management, and the direction of the people in the organization. Human Resources management is also performed by line managers

The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can’t yet afford part- or full-time help. However, they should always ensure that employees have — and are aware of — personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

The Bank has a Human Resource Development & Research Department to develop human resources internally. The Academy is equipped with professional library, modern training aids professional faculty and other facility. It is now under Personnel & Human Resource Development & Research Division. The Academy conducts regularly foundation courses, specialized courses and seminars on different areas of banking to take care of the professional needs.

All kind of situations, internal and external, related to human resource is monitored through the HR department. Eventually this bank uses all the basic internal functions of HR to run the entire organization.


Although recruiting is frequently perceived as the initial step in the staffing function, it has prerequisites. Specifically, before the first job candidate is sought, the HR specialist must embark on employment planning. Specifically, when an organization plans strategically, it determines its goals and objectives for a given period of time. These goals and objectives often lead to structural changes in the organization; that is, these changes foster changes in job requirements, reporting relationships, how individuals are grouped, and the like. As such, these new or revised structures bring with them a host of pivotal jobs. It is these jobs that HRM must be prepared to fill. HRM identifies the essential qualifications for a particular job.

The process of seeking sources for job candidates.


1) To ensure that the availability of HR with requisite skills, expertise, knowledge and abilities is at par with the Bank’s demand.

2) To ensure that the continued operation of the bank goes smoothly with the right number of HR of right quality.

3) To ensure that the most promising and best qualified candidate are selected for filling up organizational vacancies.

The main requirements of the recruitment policy of the bank are:

1) Must be a citizen of Bangladesh.

2) Must be physically and mentally fit as declared by bank’s physician or civil surgeon of any district or physician of any registered Medical college/university/hospital.

3) Candidates must not be over 30 years

4) Must submit valid document for declaration of age.



 Qualification: minimum SSC
Age: maximum 30 years

  • gathered application from different sources
  • performance in the interview board

Qualification: minimum SSC
Preference: Ex Army, Navy, Air force, Police, Ansar o BDR
Age: minimum 40 years
Procedure: Same as before

Qualification: minimum graduate
minimum typing/ word processing speed of 20 words per minute
and MS Office knowledge
Age: minimum 30 years
Procedure: Same as before


Qualification: minimum graduate
minimum typing/ word processing speed of 25 words per minute
Age: minimum 30 years
Procedure: Same as before

Qualification: minimum graduate with at least 2(two) 2nd division or equivalent CGPA
Age: minimum 30 years
Procedure: Same as before

Qualification: minimum graduate with at least 2(two) 2nd division or equivalent CGPA
Age: maximum 30 years
Procedure: All knowledge about a PC hardware/software

Qualification: Masters in any discipline/graduate with 4years honors without any 3rd division result in the entire academic career
Age: maximum 30 years
Procedure: Same as before


Graduate with honors in
1) Business Administration

2) Bank Management

3)a) Economics

   b) Accounting

   c) Marketing

   d) Finance

   e) Management

   f) Finance and Banking

   g) English

   h) Mathematics

   i) Statistics

   j) Computer Science

Recruitment is done once every year according to the requirements of IFIC BANK. After the resumes are gathered, a team is formed to check the applicants’ background whether they have any bad records or not and moreover family history is also checked. After the background is checked all the certificates are send to education boarded for verification. In addition, past service records are being verified so that the management can get the assurance of hiring competent employees.


The management of the bank will analyze the manpower requirement of branches at least once a calendar. After assessment of manpower need in line with the organ gram of branches, management will recruit required number of candidates as per policy. All appointments will be made in accordance with IFIC bank services rules, bank administrative power and as per norms/guidelines of Bangladesh Bank.


Probationary officers will be hired every year through advertisements in national dailies. The test will be conducted by IBA or BIBM, DU. If they are unable to take the test any other organization may be entrusted with the responsibilities.


Human Resources Development is focused on recruitment and in-house training for both on the job and off the job Bank staff members through the Bank’s Academy.


1) On the Job training to ensure high performance and safe time

2) To make familiar with the law and practice of banking through foundation training

3) To develop analytical and decision making skills of the employees

4) To develop understanding about human/conceptual skill and organizational culture

5) To impart managerial skills to groom future executives and to keep existing Executives updated with national and international business environment.

IFIC Bank Academy – the oldest institution in the private sector – was conceived of as an in-house training center to take care of the training needs of the Bank internally. Academy is fully equipped with a professional library, modern training aids and professional faculty. Library has about 4941 books on banking, economics, accounting, management, marketing and other related subjects.

Main training activities consist of in-depth foundation programs for entry level Management Trainees

During its 23 years of existence, Academy not only conducted courses, workshops and seminars as required by the Bank, but it also organized training programs for the Bank of Maldives, Nepal Bangladesh Bank Limited and Oman International Exchange LLC. In addition, Academy has also the credit of organizing system of Bank of Maldives.In addition to conducting courses internally, the Academy also selects candidates for nomination to various courses conducted by distinguished training organizations in the country including Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management.The Academy also re-designs its courses, programs etc, regularly to meet the requirement of new skills arising out of various directives, guidelines of the Central Bank and significant changes in the banking sector from time to time.

IFIC Bank’s Academy works under the Training and Recruitment division headed by senior executives.

IFIC bank adopts a mix training methodologies for a successful and effective training and they are:

1) Conceptual class room session

2)  Case studies

3)  Simulated lessons

4)  Group discussion

5)  Study visit

6)  Project work

7)  Communicating with senior Bankers/Academies

8)  Panel discussion

9)  Use of various training aids

Evaluation of training courses:

a) Foundation courses: Three tests will be conducted in the areas of General Banking, Accounting, Credit and Foreign exchange.

b)   In case of fresher, specialized courses and workshops are prepared. Course directors will prepare an evaluation report on the performance of the participant on the basis of their own observation as well as of speakers and session takers.

c)  Evaluation report on the courses and performance report of the participants of the foundation course will be submitted to the Management for necessary action when required.

Moreover IFIC bank has external sources through which training is held:

1)      Bangladesh bank training

2)       Bangladesh Institute of Bank management (BIBM)

 A committee is selected by the management who will select the participants depending on the need, suitability and potential and they are sent abroad on training, attending seminars etc.


Specialized training programs in the areas like general banking, advance, foreign exchange, marketing and accounts etc. are also organized by the Academy depending on need.

Frequently outreach programs are organized to meet demand for new and specialized skills.


Promotion will be considered as “VERTICAL ELEVATION” in organizational hierarchy usually with enhances pay, allowance, & status.


1) Through demonstration of merit and performance as a result organization assume for giving higher responsibilities in Bank progress.

2) Giving due importance to performance/merits/potential on employees

3) Retaining good performers in the service of the bank

4) Encourage and motivate the average performers to do better.

5) Promoting on the basis of need of the bank, that is, business expansion/branch expansion/ and future growth potential.


  • Academic as well as professional qualification
  • Knowledge of banking rules and regulations
  • Job performance as evident from performance appraisal reports
  • Length of services or seniority in the grade
  • Potential for development and contribution to the growth and development of the bank
  • Clean service record
  • Smartness
  • Satisfactory performance in interview


The HR department usually designed and administers the company’s performance appraisal system. Centralization ensures uniformity. Although the HR department may develop different approaches for managers, professionals, workers and other groups, uniformity within each group is needed to ensure comparability of results.

Figure show the effective Appraisal System. Appraisal approaches must identify performance related standards, measure those criteria, and then give feedback to employees and the HR department. If performance standards or measures are not job related, the evaluation can lead to inaccurate or biased results, harming the manager’s relationship with their employees and violating equal employment opportunity rulings. Without feedback, improvement in human behavior is not likely and the department will not have accurate records in its HR information system on which to base decisions ranging from job design to compensation.

The appraisal should create an accurate picture of an individual’s typical job performance .Appraisals are not done just to uncover poor performance; acceptable and good results also must be identified so that they can be reinforced. To achieve this goal, appraisal system should be job related and practical, include standards, and use dependable measures.

A practical system is understood by evaluators and employees. A complicated, impractical approach may cause resentment, confusion, and nonuse.

A standardized system within the organization is helpful because it allows the establishment of uniform practices. A standardized system often has well though-out performance standards and measures.


 Appraisal systems require performance standards, which serve as benchmarks against which performance is measured.

To hold employees accountable, a written record of the standards should exist and employees should be advised of those standards before the evaluation occurs. Ideally the appraisal of each employee’s performance should be based on actual performance of the critical elements identified through job analysis.


Performance evaluation also requires dependable performance measures, the ratings used to evaluate performance. To be helpful, they determine performance. Dependable measures also allow others using the same measures applied against the same standards to reach the same conclusions about performance, adding to the reliability to the appraisal system.

Performance measures also may be subjective or objective;

Types and Accuracy of performance Measures:












 Objective performance measures are indications of job performance that are verifiable by others and are usually quantitative.

Subjective performance measures are ratings that are based on the personal standards or opinions of those doing the evaluation and are not verify able by others.


The design of the performance appraisal system often contributes to the challenges facing HR professionals. Important challenges include,

  1. Legal Constraints.
  2. Rater Biases.
    1.                                                         I.      The halo effect.
    2.                                                       II.      The error of central tendency.
    3.                                                     III.      Leniency and strictness bias.
    4.                                                     IV.      Cross-cultural biases.
    5.                                                       V.      Personal prejudice
    6.                                                     VI.      The recency effect

  3. Appraisal acceptance

                                          (Reference: Human Resources And Personal Mgmt

                                            WilliamB.Werther,JR.Keith Davis)


Welfare activities refer to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.


It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.


Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.


The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.


Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.


The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.


Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.


Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.


Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

Conclusion and Recommendation


Although IFIC Bangladesh has grown at a moderate pace over the years and performed quite well, still there is always room for improvement. In this part of the report, some suggestions have been made that might help IFIC Bangladesh in the long-run.

The following are recommendations on HR policies for the bank as a whole:

  • Ø Although IFIC Bangladesh is reputed for strong employee commitment; it is not known for a very good compensation structure. Since pay is the most important determinant of employee motivational levels, the HR department of the bank has to work harder in order to come up with better incentives including rewards, more bonuses, etc.
  • Ø Wide promotional activities help to get larger market which is already targeted and also those which are out of target. Promotional activities can increase though TV media, radio stations, newspapers, through internet and also through e-mail and SME (obviously with permission of the existing clients) like alerting existing clients about new products or features. Door to door promotion is a good promotional activity which already adopt by IFIC, it can be performed also by phone.
  • Ø Employment of experienced and skilled executives to widen up their existing functions for grabbing opportunities in market. It will help in acquiring the required capability to increase the earnings of this department. Training session can be arranged for existing mid and lower level officials to cope up with current activities and practical operations. It will ensure the enhancement of skills and competencies of the employees who will in turn ensure their commitment toward better performance. Human resources of the bank should increase to speed up the day to day operations and customer services.
  • Ø IFIC should make compensation system attract the best for the bank. Reward should peak performers with systems that match achievement to compensation. Pay systems — more expensive than ever before can help you stay productive and competitive. Benefit systems — more complex than ever before can match a benefit system that matches strategies and objectives.


Form the learning and experience point of view I can say that I really enjoyed my internship period in IFIC Bank Ltd. at Malibagh Br. from the very first day. I am confident that this 3 three months internship program will definitely help me to realize my further carrier in the job market.

Performance analysis of a bank is not so sufficient to measure and express perfectly within this short time of my internship period. But it is a great opportunity for me to get used to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the necessary relevant information in my report.

Top management of IFIC should conduct a comprehensive study or survey on the branches’ performance, its management’s performance and the employees’ performance and their motivation as well. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employee in some sector, considering all of these very important factors. IFIC Bank should always try to improve their service level in every term. The marketing department should think freshly about their marketing objectives and practices. Rapid changes can quickly make yesterday’s wining strategies out of date. As a developing private bank in Bangladesh, IFIC Bank shouldn’t allow their client to get dissatisfied with their service. They have their competitors who actively striving to take the advantages in every side. During the course of my practical orientation I have tried to learn the practical banking to relate it with my theoretical knowledge, what I have gathered and going to acquire from various courses.



Noe, R. A. (2005). Employee Training and development, New York: McGraw-Hill.

Jackson, S. & Schuler R. (2006). Managing Human Resources: A Partnership Perspective, South-Western Publishing.

Henry Waren; How to use your bank

Effective Training;P.Nick Blanchard &James W.Thacker

Different prospectus of IFIC Bank Ltd.

Chadha Skylark; Managing Projects in Bangladesh

Bank Publications:

The Daily Star;19th February 2010

Annual Reports of IFIC year 2007

Annual Reports of IFIC year 2008

Credit Risk Grading Policies of IFIC

CRG Chart provided by Bangladesh Bank

IFIC General Banking Policy Book


IFIC Bank Ltd

Some are parts:

General Banking and HRM Practices with Special Reference to IFIC Bank Ltd (Part 1)

General Banking and HRM Practices with Special Reference to IFIC Bank Ltd (Part 2)

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