Internship Report on Customer Service of IFIC Bank [ Part-2 ]

Background of the Organization

(2.1) Historical background of IFIC bank:

1976 – Established as an Investment & Finance Company under arrangement of joint venture with the Govt. of Bangladesh.

1980 – Commenced operation in Foreign Exchange Business in a limited scale.

1982 – Obtained permission from the Govt. to operate as a commercial Bank.

1983 – Setup its first overseas joint venture (Bank of Maldives) on the Republic of Maldives.
– Commenced operation as a full-fledged commercial Bank in Bangladesh.

1985 – Set up a joint venture Exchange Company in the Sultanate of Oman.

1987 – Set up its first overseas branch in Pakistan at Karachi.

1993 – Set up its second overseas branch in Pakistan at Lahore.

1994 – Set up its first joint venture in Nepal for banking operation.

1999 – Set up its second joint venture in Nepal for lease financing.

2003 – Bank celebrated its 20th founding anniversary.

– Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture Bank: NDLC-IFIC Bank Ltd., subsequently renamed as NIB Bank Ltd.

It conveys its objective via their motto: “Your Satisfaction First.”

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 per cent were held by the sponsors and general 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 rest is held by the general public.

IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There is Seventy Six Branches of IFIC Bank all over the country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Banani Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Banani branch only.
(2.2) Strategies of the bank:

IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the activities of its branches. In case of marketing strategy they basically depend on ‘word of mouth’ as they are already well reputed for its long-term service in the banking industry.

The branches of the Bank cover all tile important trading and commercial centers in Bangladesh. At present it has 76 branches within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower.
(2.3) Mission of the IFIC bank:

Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.
We are committed to the welfare and economic prosperity of the people and the community, for we drive from them our inspiration and drive for onward progress to prosperity. We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary.
In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.

(2.4) Board of Directors:
Unlike other banks in the private sector, Board of Directors of the bank is a unique combination of both private and Govt. sector experience. Currently it consists of 13 Directors. In spite of them eight represent the sponsors and general public and four senior officials in the rank and status of joint Secretary/ Additional Secretary represent the Govt. Managing Director is the ex-officio Director of the Board.

1 Mr. Mohammad Lutfar Rahman
2 Mr. Abu Tahir Mohammad Golam Maruf
3 Mr. Murshed Murad Ibrahim
4 Mr. Aminur Rahman
5 Mr. Md. Yasin Ali
6 Mr. Didarul Alam
7 Chowdhury Nafeez Sarafat
8 Mr. Gulzar Alam Chowdhury
9 Mr. Tanim Noman Sattar
10 Mr. Mahmudul Huq Bhuiyan
11 Mr. Arastoo Khan
12 Mr. Syed Monjurul Islam
13 Mr. Mohammad Ali Khan, ndc
14 Mr. Mosharraf Hossain
Managing Director

(2.5) Objectives of the Bank:
The objectives of the bank are to promote joint participation of Government and private sponsors to establish joint venture banks, financial companies, branches and affiliates abroad to satisfy their customers.

It conveys its objective via their motto: “Your Satisfaction First.”

To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust-business in Bangladesh and abroad.

To form, establish and organize any bank, company, institution or organization, singly and/or in joint-collaboration for partnership with any individual, company, financial institution, bank, organization, or any Government and/or Government agency for- the purpose of carrying on banking, financial, investment and trust business and/or any other business as provided hereafter.

To carry on any business relating to Wage Earner’s Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of Foreign Currency Accounts and any other matter related thereafter.

To contract or negotiate all kinds of loan, and or assistance, private or public, from any source, local or foreign, and to take all such steps as may be required to complete such deals.

To form, promote, organize, assist, participate or aid in forming, promoting or organizing any company, bank, syndicate, consortium, and institute or any holding or subsidiary company in Bangladesh or abroad for the purpose of undertaking any banking, financial, investment or trust business.

(2.6) Vision of the IFIC bank:

1. Provide the greatest return to their shareholders by achieving sound profitable growth.

2. Be perceived by customer and staff as the best wherever it operates.

3. Have staff of the highest caliber.

4. Excel in the way to work together to make decision and get things done.

(2.7) Management Structure:

The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.

The CEO and Managing Director are assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.

Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.

There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.

(2.8) Risk Management:

In view of the global recognition towards need of an effective risk management and control systems in financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented the following policy guidelines on Risk Management:
• Credit Risk Management.

• Asset Liability Management.

• Foreign Exchange Risk Management.

• Internal Control & Compliance.

• Prevention of Money Laundering.

(2.9) Joint Ventures Abroad:

(a) Bank of Maldives Limited:
IFIC is the first among the banks in the private sector to have operations abroad. In 1983, the Bank set up a joint venture bank in Maldives known as ‘Bank of Maldives Limited’ (BML) at the request of the Government of the Republic of Maldives. This is the only national bank in that country having branches throughout that country. IFIC Bank managed the affairs of BML from 1983 to 1992. IFIC Bank sold its shares in 1992 to the Government of the Republic of Maldives and handed over the Management of BML to Maldives Government.
(b) NIB Bank Ltd., Pakistan:
IFIC Bank had two branches in Pakistan, one in Karachi and the other in Lahore. Karachi Branch was opened on 26th April 1987, while Lahore Branch was opened on 23rd December1993.

To meet the Minimum Capital Requirement (MCR) of the State Bank of Pakistan, the Overseas Branches in Pakistan have been amalgamated with a reputed leasing company in Pakistan named National Development Leasing Corporation Ltd. Therefore, the existence of our above Overseas Branches has ceased w.e.f. 2nd October 2003 and a new joint venture bank entitled NDLC – IFIC Bank Ltd. emerged in Pakistan w.e.f. 3rd October 2003. The Bank was subsequently renamed as NIB Bank Ltd. IFIC Bank presently holds 7.31% equity in the Bank.
(c) Nepal Bangladesh Bank Ltd. (NB Bank)
Nepal Bangladesh Bank Ltd. (NB Bank), a joint venture commercial bank between IFIC Bank Ltd. and Nepal nationals, started operation with effect from June 06, 1994 in Nepal with 50% equity from IFIC Bank Ltd.
The Bank has so far opened 17 (seventeen) branches at different important locations in Nepal. IFIC Bank presently holds 25% shares in NB Bank.
(d) Nepal Bangladesh Finance & Leasing Limited (NB Finance):
Nepal Bangladesh Finance & Leasing Co. Ltd. (subsequently renamed as Nepal Bangladesh Finance & Leasing Ltd.), another joint venture leasing company between IFIC Bank Ltd. and Nepali Nationals, started its operation on April 18, 1999 in Nepal. IFIC Bank presently holds 15% share in the company.

(e) Oman International Exchange LLC (OIE)
Oman International Exchange LLC (OIE), a joint venture between IFIC Bank Limited and Oman nationals, was established in 1985 to facilitate remittance by Bangladeshi wage earners in Oman. IFIC Bank holds 25% shares, and the balance 75% is held by the Omani sponsors. The exchange company has a network of 10 branches covering all the major cities/towns of Oman. The operations of the branches are fully computerized having online system.
(2.10) Number of branches and locations of IFIC bank in Bangladesh:
In Bangladesh, IFIC Bank have 76 branches in the following cities:
Dhaka Division: In Dhaka it has 35 Branches. Inside of the Dhaka city it has 20 Branches those are
1. Motijheel Branch
2. Federation Branch
3. Moulvi bazaar Branch (Old Dhaka)
4. Dhanmondi Branch
5. Shahtinagar Branch
6. Gulshan Branch
7. Islampur Branch
8. Bangshal Branch
9. Elephent Road Branch
10. Naya paltan Branch
11. Kawran bazaar Branch
12. Malibagh Branch.
13. Uttara Branch.
14. Lalmatia Branch
15. Pallabi Branch.
16. North brook hall road Branch
17. Banani Branch
18. Mohakhali Branch
19. Keraniganj Branch
20. Dhonia Branch
Outside of the Dhaka it has 15 branches:
1. Narayanganj Branch
2. Netaiganj Branch
3. Ghorasal Branch
4. Madhabdi Branch
5. Konabari Branch
6. Mukterpur Branch
7. Norshingdi Branch
8. Bajitpur Branch
9. Mymanshing Branch
10. Faridpur Branch
11. Tekerhat Branch
12. Nawabpur Branch
13. Ashulia Branch
14. Rupganj Branch
15. Shariatpur Branch
Chittagong Division:
1. Agrabad Branch
2. Khatunganj Branch
3. Terri bazaar Branch
4. Sheikh market Branch
5. Hathazari Branch
6. Fatikchari Branch
7. Chawk bazaar Branch
8. Shah Amanat market Branch
9. Sheikh Mujib road Branch
10. Cox,s Bazaar Branch
11. Brahmanbaria Branch
12. Comilla Branch
13. Companiganj Branch
14. Feni Branch
15. Choumuhani Branch
Rajshahi Division:
1. Rajshahi Branch
2. Naogaon Branch
3. Pabna Branch
4. Rangpur Branch
5. Dinajpur Branch
6. Bogra Branch
7. Chapai Nawabganj Branch
8. Baneshwar Branch

Khulna & Barisal Division:
1. Khulna Branch
2. Boro bazaar Branch
3. Jessore Branch
4. Benapole Branch
5. Satkhira Branch
6. Noapara Branch
7. Kushtia Branch
8. Barisal Branch
1. Sylhet Branch
2. Beani bazaar Branch
3. Tultiker Branch
4. Subid bazaar Branch
5. Uposhohor Branch
6. Moulvi bazaar(Dist) Branch
7. Sreemongal Branch
8. Goala bazaar Branch
9. Mirpur Branch
10. Tonghi Branch

There are 76 Branches of IFIC Bank in all over the country.

(2.11) Technology & Number of ATM’s (Automated Teller Machines):

Since the beginning of its journey as a commercial bank in 1983, IFIC Bank has been giving great emphasis on the adoption of modern technology. It became the pioneer in the field of automation by introducing computerized branch banking right in the same year. Subsequently, all the branches were brought under similar automated platforms with upgraded software applications to offer all the critical banking features. At present all 76
Domestic branches are fully computerized under networked environment.

The Bank has taken up a new project with MISYS International Banking System Inc. (UK) to further upgrade its banking operation to state-of-art world class on-line banking solutions to provide faster and even more convenient centralized services to the clients.

Besides, the Bank is also operating fully on-line Automated Teller Machine (ATM) services under the banner Q-Cash at a number of locations in Dhaka and Chittagong. The ATM facilities are available to the customers at Q-Cash booth.

Since the importance of Web presence in the Internet is absolutely critical, IFIC Web Site has long been launched for the convenience of the customers, where all the activities and information are constantly being posted and updated. A Central Mailing System is operational at the Head Office to let the customers have direct electronic access to the selected staff.

(2.12)Human Resource Development (HRD):

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. 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 programmers 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 programmes for the Bank of Maldives, Nepal, Bangladesh Bank 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, programmed etc, regularly to make 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.

(2.13) values of the bank:

1) Strong customer focus and building relationship based on integrity, superior service and mutual benefit.

2) Striving for profit and sound growth.

3) Working as a team to serve the best interest of the group.

4) Relentless in pursuit of business innovation and improvement.

5) Values and respect to people and making decision based on merit.

6) Recognition and reward based on performance.

7) Valuating open and honest communication.

8) Responsible, trustworthy and law-abiding in every respect.

(2.14) Annual Report:


Balance Sheet

As at December 31, 2008

























In hand (including foreign currency)



Balance with Bangladesh Bank and its Agents Bank (including foreign currency)



Balance with other banks and financial institutions





In Bangladesh



Outside Bangladesh



Money at call and short notice















Outside Bangladesh



Loans and advances





Loans, cash credits, overdrafts, etc.



Bills discounted and purchased




Fixed assets including premises, furniture and fixtures





Other assets





Non Banking Assets


Total assets








Borrowing from other banks, financial Institutions and agents





In Bangladesh



Outside Bangladesh

Deposit and other accounts





Current deposits and Other accounts



Bills payable



Savings bank deposits



Term deposits



Other liabilities





Total liabilities



Capital / Shareholders’ equity

Paid up capital




Statutory reserve




Other reserve




Surplus in Profit and Loss Account




Total shareholders’ equity



Total liabilities and shareholders’ equity




Financial Highlights

As at December 31, 2008



Taka in million




 01Paid up Capital       1,341.43           670.72
 02Total Capital       3,797.04        3,045.09
 03Capital Surplus          748.13           644.64
 04Total Assets     45,737.49      39,914.15
 05Total Deposits     36,092.17      29,900.05
 06Total Loan & Advances     33,018.39      28,361.46
 07Total Contingent Liabilities & Commitments     20,536.26      19,422.59
 08Credit Deposit Ratio



 09Percentage of Classified Loan Against Total Loans & Advances



 10Profit after Tax & Provision          657.31           964.93
 11Amount of Classified Loans during the year       1,953.07        2,299.90
 12Provision Kept Against Classified Loans          651.85           984.02
 13Provision Surplus/Deficit            30.20               1.59
 14Cost of Fund



 15Interest Earning Assets     39,806.29      35,520.23
 16Non-interest Earning Assets       5,931.20        4,393.92
 17Return on Investment (ROI)



 18Return on Assets (ROA)



 19Income from Investment          691.44           569.53
 20Earning per Share            49.00             71.93
 21Income per Share          411.98           774.77
 22Price Earning Ratio (Times)            24.26             16.13


More part of this Report-

Internship Report on Customer Service of IFIC Bank [ Part-1 ]

Internship Report on Customer Service of IFIC Bank [ Part-2 ]

Internship Report on Customer Service of IFIC Bank [ Part-3 ]

Internship Report on Customer Service of IFIC Bank [ Part-4 ]