Functional Division of CBL

Functional Division of CBL: The Bank accomplishes its functions through different functional divisions/departments along with their major functions are listed below:

1Financial Division:

 Financial Planning , budget preparation and monitoring

 Payment of salary

 Controlling inter-branch transaction

 Disbursement of bills

 Preparation / Review of returns and statement

 Preparation of financial reports and annual reports

 Maintenance of Provident Fund, Gratuity, Superannuation Fund

 Reconciliation

2. Credit and risk management:

 Loan administration

 Loan disbursement

 Project evaluation

 Processing and approving credit proposals of the branches

 Documentation, CIB (Credit Information Bureau) report etc

 Arranging different credit facilities

 Providing related statements to the Bangladesh Bank and other department

3. Human Resource Division (HRD

 Recruiting

 Training and development

 Compensation, employee benefit, leave and service rules program and purgation

 Placement and performance appraisal of employees

 Preparing related reports

 Reporting to the Executive Committee/Board on related matters

 Promotional camping and press release

4. Information Technology (IT) department

 Software development

 Network management and expansion

 Member banks reconciliation

 Date entry and processing

 Procurement of hardware and maintenance

5. Branch control & Inspection Division

 Controlling different function of the branches and search for expansion

 Conducting internal audit and inspection both regularly and suddenly

 Ensuring compliance with Bangladesh Bank(BB), monitoring BB’s inspection and external audit reports

6. Retail Division

 ATM card, Credit and system operation and maintenance

 SWIFT operation

 Credit Card Operation (Proposed)

 Customer and vendor relationship

7. City Bank Treasury and Market Risk Division:

City Bank Limited has a dedicated Treasury team who is capable of providing all treasury Solutions. Through business partners CBL is providing a wide range of Treasury products. In CBL Treasury, there are various teams who are specialized in their own area to ensure the best possible solution to our customer obligation.

 Such as:

 Foreign Exchange

 Money Market

 Corporate Sales

 ATM and Market Research

Strategy of CBL:

CBL believes in the practice of Market-Oriented Strategic Planning , developing and maintaining a viable fit between the organization’s objectives, skills and resources, The aim of such approach is to shape  and reshape the bank’s businesses and service so that they yield target profit and growth. The strategic planning of CBL consists of two organizational levels, which are:

a) Location Based Strategy

b) Business Level Strategy

 a) Location Based Strategy:

Since the growth and profit of banking business largely depends upon the location of branches where large connection of other businessman and industries are involved, CBL Main Strength is its location based strategy. The 83 branches of CBL are divided into five different regions, which are:

 Dhaka Division, comprises 37 branches

 Chittagong Division , comprising 15 branches

 Comilla Division , comprising 5 branches

 Sylhet Division , comprising 9 branches

 Bogra Division , comprising  10 branches

 Khulna Division , comprising  7 branches

 The concentration of business and lifestyles of the people are not the same in these five areas. So, the strategies of the five areas differ from one another, but they are designed with distinctive local touch. Head office constantly monitors the progresses of all the five areas. At present, The bank is not interested in launching more branches. Currently CBL is focusing in strengthening the existing branches.

 Business Level Strategy:

 The business strategy of the Bank is to strengthen its retail business, following a conservative leading approach. But the Bank’s major portion of the profit generates from its Retail banking and SME banking.

(i)                Retail Banking Strategy

(ii)             SME Banking Strategy

Retail Banking Strategy:

The City Bank Ltd. recently has started its journey in Retail Banking. More than 700 staffs have been trained so far on the vital concepts of service excellence and sales. In the product side ATM fleet has been launched , Debit card and credit ha s been issued, SMS Banking has been offered, 3 new deposit products have been introduced, manifold in the endeavor to build a Retail Banking brand namely “City Retail Happiness Counts”.

SME Banking Strategy:

Considering the potential growth and demand situation The City Bank Limited extended credit facilities to small and medium enterprises through SME Banking in the year 2006 and 2007. A separate division has been established in the Head Office with collaboration of all branches to process and handle loans under SME for attaining a respectable market share and successful operation of the scheme. The bank organized several training program for the development of adequate human resources.

City Bank Ltd