Performance Evaluation of trust Bank as a Financial institution (Part-1)
Subject: Finance | Topics:

Background of the Report

A country is financially rich when it has modern financial institutions of its own. These institutions play a vital role in the field of financial stability of a country. Banking sector is one of the stable financial institutions of a country. Due to Globalization and Technological change, the banking business has become very competitive now a day. All banks are competing to give effective real time service to their customers. For giving friendly service to the customers they need experienced and well-educated working force. But a bank is also judged by its overall performance and for that reason I made this report to illustrate the performance of Trust Bank ltd.

Objectives of the Report

The general objective of preparing this report is to find the performance of the bank.

I have gathered theoretical knowledge from my College. But there is a far difference between practical and theoretical knowledge. This difference was crystal clear to me while I was preparing this report.

To learn about the activities of the bank.

To learn internal environment of the bank

To observe Employee-Customer relationship.

To observe inter personal relationship between employees.

Scope of the report

The report will help to understand the overall performance as well as the individual unit performance of the bank.

The report it self will deliver the financial strength of the bank in the money market and it will also help to learn about the bank with its infrastructural facilities, its services, products, interest rates and location of branches.

Methodology of the Study

Sources of Data: Both primary and secondary data were required to attain the objectives of this study.

Primary data:

For Primary data face-to-face interview. Depth interview technique has been used to collect information about bank’s financial performance. The interviewing methods were applied on responsible authority like Management trainees, officers, DGMs, AGMs, and the bank manager himself. They told us that why they think that they are running a successful banking operation.

Secondary data:

Some published materials of the bank under study have been used as the sources of secondary data. The published materials for the present study include list of journals, articles, notifications, important and also confidential report of Bangladesh Bank, guide books, annual report, brochures and web site etc. Trust Bank has provided  those materials and help in collecting data for analysis and interpretation.

Web link of TBL to make this report has helped me to show the necessary information regarding the bank itself.

Limitations of the Study

It is natural that every journal, report has a few limitations. This report is not an exception. To work with this report I have faced some theoretical, informatory and confidential limitations. In this regard there are plenty of information and theory to use but not everyone is accustomed to using it.

In this report I have drawn some limitations. These are mentioned as below:

It was very hard to collect information from Officers and staffs because they were extremely busy with their day-to-day official works.

Original data could not be collected in some cases due to confidential reasons of specific units.

Since information is not contained in a compiled form it was difficult to collect up-to-date data on the subject in spite of co-operation from the officers and employees.

Another major limitation of the study was the lack of scope for communication with other banks’ officials and banks so the report may lack in comparison.

I did not work with full concentration because there were various types of general activities of the bank.

The time period was not sufficient to made this report so elaborative.

I have used limited data in this report.

This report tells about the activities of The Trust Bank in a nutshell.

Most of the data are collected from Secondary as well as Primary sources.

The Trust Bank Limited: An Overview

The Trust Bank Ltd. is a private, commercial, scheduled Bank, which obtained license from Bangladesh Bank on July 15, 1999. Presently Army Welfare Trust is the major shareholder. The authorized capital of the Bank is Taka one thousand million and paid-up capital of Taka three hundred and fifty million. Public shares will be floated in the near future. The Bank was formally inaugurated and listed as a scheduled Bank on November 1999.

The idea of setting up a Bank by Bangladesh Army was first conceived in 1987 and on November 29, 1999 the first branch of the Trust Bank Ltd. at Dhaka Cantonment was formally inaugurated by then Hon’ble Prime Minister, Sheikh Hasina.

Composition of the Board of TBL consists of Ex-officio Directors of in-service senior Army personnel, with the Chief of Army Staff as its Chairman and the Adjutant General as its Vice-Chairman.

In addition to ensuring quality customer services related to general banking the bank also deals in Foreign Exchange transactions. In the mean time the bank has extended credit facilities to almost all the sector of the country’s economy. The bank has plans to invest extensively in the country’s industrial and agricultural sectors in the coming days.

It has also plans to promote the agro-based industries of the country. The bank has already participated in syndicated loan agreement with other banks to promote textile sectors of the country. Such participation would continue in the future for greater interest of the overall economy. Keeping in mind the client’s financial and banking needs the bank is engaged in constantly improving its services to the clients and launching new and innovative products to provide better services towards fulfillment of growing demands of its customer.

Here in the TBL a blend of expertise and technological excellence is in place to meet varied needs of modern customers. The bank aims at mobilizing untapped money of the country and prudent deployment for productive activities in the form of lending at a competitive interest rates/loan pricing. Towards attainment of its goals and objectives, the bank pursues diversified credit policies and strategic planning in credit management. To name a few, the bank has extended micro credit, consumers durable scheme loans, house building loans etc. to cater to the needs of the individuals, which in turn has helped thousands of families. The bank also extends loan in the form of trade finance, industrial finance, project finance, export & import finance etc. The bank’s credit polices aimed at balanced growth and harmonious development of all the sectors of the country’s economy with top most priority to ensure quality of lending by averting growth of non-performing assets.

Board of Directors’ Profile

The Founder Members of the Board of Directors are as under:

1.       Lt Gen Muhammad Mustafizur Rahman, BB, ndc, psc       Chairman

Chief of Army Staff., Bangladesh Army, Dhaka Cantonment, Dhaka.

2.       Maj Gen Muhammed Masudur Rahman, BP, nwc, psc   Vice-Chairman

Adjutant General, Bangladesh Army, Army Headquarters,

Dhaka Cantonment, Dhaka.

3.       Brig Gen Khurshid Alam, psc                                           Director

Director, Ordance Services, Army Headquarters,

Dhaka Cantonment, Dhaka.

4.       Brig Gen Abdul Mannan Miah, ndu, psc                                     Director

Director, Welfare & Rehabilitation, Army Headquarters,

Dhaka Cantonment, Dhaka.

5.       Brig Gen A N M Muniruzzaman, psc                                 Director

Director, WE & S, Army Headquarters,

Dhaka Cantonment, Dhaka.

6.       Brig GenMd Ahsan Habib                                                         Director

Director, Movement & Quartering, Army Headquarters,

Dhaka Cantonment, Dhaka.

7.       Lt Col Khan Golap                                                           Director

A/Director, Personnel Administration, Army Headquarters,

Dhaka Cantonment, Dhaka.

8.       Mr. Ekhlasur Rahman                                                      Director

CSO-1 Assistant Adjutant General (Project)

Welfare & Rehabilitation Directorate, Army Headquarters,

Dhaka Cantonment, Dhaka.

9.       Md. Helal Uddin                                                     Managing Director

Present Members of the Board of Directors are as under:-

  1. Lt Gen Moeen U Ahmed, psc                                  Chairman

Chief of Army Staff, Bangladesh  Army

Army Headquarters, Dhaka Cantonment.

  1. Mr. Farhad Uddin                                                  Company Secretary
  1. Maj Gen Md Matiur Rahman,ndu,psc                      Vice Chairman

Adjutant General(AG), Bangladesh Army,

Army Headquarters, Dhaka Cantonment

  1. Mr. Iqbal U. Ahmed                                               Managing Director
  1. Brig Gen S M Mahbubul Karim                                Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Rafiqul Islam, ndc, psc                       Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Shawkat Hossain, psc                         Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Muhammad Anisur Rahman, ndc,psc       Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Golam Mustafa, afwc                          Directors

Dhaka Cantonment, Dhaka

Organ gram of TBL

  • Chairman
  • Managing Director (MD)
  • Executive Vice-President (EVP)
  • Senior Vice-President (SVP)
  • Vice-President (VP)
  • Senior Assistant Vice-President (SAVP)
  • Assistant Vice-President (AVP)
  • Senior Principal Officer (SPO)
  • Principal Officer (PO)
  • Senior Officer (SO)
  • Grade-1 Officer
  • Grade-2 Officer
  • Trainee Officer (TO)
  • Junior Officer (JO)

Branch Network across The Country

At present the Bank has the following 17 (Seventeen) branches.

1.       Principal Branch, Dhaka Cantonment, Dhaka.

2.       Sena Kallyan Bhaban (SKB) Branch, Motijheel C/A, Dhaka.

3.       Bogra Cantonment Branch, Bogra.

4.       Comilla Cantonment Branch, Comilla.

5.       Chittagong Cantonment Branch, Chittagong.

6.       Rangpur Cantonment Branch, Rangpur.

7.       Jessore Cantonment Branch, Jessore.

8.       Momenshahi Cantonment Branch, Mymensingh.

9. Savar Cantonment Branch, Savar.

10. Jalalabad Cantonment Branch, Sylhet.

11. Agrabad Branch, Agrabad Commercial Area, Chittagong.

12. Shaheed Salahuddin Cantonment Branch, Ghatail, Tangail.

13. Dhanmondi Branch, BDR Gate # 04, Peelkhana, Dhanmondi, Dhaka.

14. Khatunganj, Chittagong.

15. Gulshan, Dhaka.

16. UttaraModelTown

17. Radisson Water Garden Hotel,Dhaka and KhawajaYunusAliMedicalCollege & Hospital, Sirajgong

Vision of TBL

  1. To build a sustainable and respectable financial institution.
  2. To be a leading Commercial Bank, with a social focus, assisting in the economic development of the country.
  3. The Profit of the bank used for the Socio-economic development of the members of the Bangladesh Army and thereby the nation as a whole.
  4. Mission Statement of TBL
  5. Achieving sound and profitable growth in Assets & Liabilities, with focus to maintain non-performing assets at acceptable levels.
  6. To build long-lasting, credible and mutually dependable relationships with customers.
  7. Efficiently managing interest and operating costs.
  8. To excel in rendering superior customer service.
  9. To be the preferred employer among Banks in Bangladesh.

Mission Statement

  1. Achieving sound and profitable growth in Assets & Liabilities, with focus to maintain non-performing assets at acceptable levels.
  2. To build long-lasting, credible and mutually dependable relationship with customers
  3. Efficiently managed interest and operating costs.
  4. To excel in rendering superior customer service.
  5. To be the preferred employer among

Current Banking Sectors

  1. Transaction / General Banking
  2. Call Money Market
  3. International Trade and Finance:

                 i) Import service facilities

                ii) Export service facilities

  1. Short-term & long-term deposits
  2. Capital And Loans & Advances

Foreign Correspondent Relationship

For routing L/Cs and other Foreign Exchange Transactions we have established Correspondent Relationship with major branches of the following foreign Banks.

01.     Citibank N.A

02.     The Hong Kong & Shanghai Banking Corp. Ltd. (HSBC)

03.     American Express Bank Ltd.

04.     Arab Bangladesh Bank Ltd.

Human Resources Development

The bank’s work force is composed of personnel having sound academic backgrounds with vast experience in banking. Human resources development creates an environment by dynamic, enthusiastic and vigorous participation of all individuals. The total number of executives and officers of the bank stood at 240 as on December 31, 2005. However, with opening new branches the total head count would increase in the year 2006. To make the personnel of the bank knowledgeable and truly professional, it arranges training for them at Head office of the bank, BIBM and other institutions. The management of the bank sits with the branch managers and departmental heads in regular meetings that provide scopes for open discussions, which help in formulating new strategies for achieving ‘targets’ of the bank. The bank also gives due emphasizes on the motivational side of the employees by providing them competitive salary/pay packages well as by creating pro-active job environment in the bank.

Information Technology (IT) and Automation:

All the branches of the TBL are fully computerized. New software is now in use to provide faster, accurate and efficient services to the clients. The bank is continuously striving for ensuring better services through extensive automation of its branches. This bank is soon going to launch “ONE BRANCH BANKING” through On-line connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT for ensuring better service in the days to come.

Information Technology (IT) and Automation

All the branches of the TBL are fully computerized. New software is now in use to provide faster, accurate and efficient services to the clients. The bank is continuously striving for ensuring better services through extensive automation of its branches. This bank is soon going to launch “ONE BRANCH BANKING” through On-line connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT for ensuring better service in the days to come.

See more Part-

Performance Evaluation of trust Bank as a Financial institution (Part-1)

Performance Evaluation of trust Bank as a Financial institution (Part-2)

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