SWOT analysis, is a strategic planning tool to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business venture. It involves specifying the objective of the project or business venture and identifying the internal and external factors that are favorable and unfavorable to achieve the objectives. The aim of the SWOT analysis is to identify the key internal factors (strengths, weaknesses) which are controllable and external factors (opportunities, threats) which are uncontrollable.
Strengths are attributes of the organization that are helpful to achieve the organizational objectives. Strength of the credit department of Bangladesh Rupali Bank, Mohammadpur Branch are as follows:
- Strictly follow ethical banking practices.
- Bank have many attractive deposit schemes.
- Provide speedy customer service at a very competitive cost.
- Deal with customers in a transparent manner and without any hidden cost.
- Maintain strict secrecy of customer account.
- Deal quickly with complaints received from customers.
- There is no discrimination on grounds of religion, sex or race at any stage.
Weaknesses are attributes of the organization that are harmful of to achieve the organization’s objectives. Some weaknesses of the credit department of Bangladesh Rupali Bank, Mohammadpur Branch are as follows:
- The management of this Branch says that they conduct interest-free banking but in actual the Branch has not abolished interest. They only changed the nomenclature of their transactions.
- It has not yet been successful in devising an interest-free mechanism to place their funds.
- According to the Bangladesh Bank guidelines the spread between the FDR rate and loan against FDR rate should not more than 3%. But the bank some times charge more than that spread rate for loan.
- BKB, ID Branch do not have the necessary expertise and trained manpower to appraise, monitor, evaluate and audit the projects they are required to finance.
- Higher interest rate in case of consumer loan.
- Guidelines provided by Bangladesh Bank do not followed properly.
- Lack of online banking.
Internal conditions those are helpful to achieve organization’s objectives. Some opportunities of the credit department of Bangladesh Rupali Bank are as follows:
- The population of Bangladesh is continuously increasing at a rate of 7.3% per annum. The country’s growing population is gradually and increasingly learning to adaptation of consumer finance. Lower interest rate for financing consumer can attract a large number of consumers.
External factor can work as barrier to achieve the organization objectives. Some threats of Bangladesh Rupali Bank are as follows.
- Numbers of domestic private banks and foreign banks are increasing day by day which are providing efficient modern services and they continuously innovating new product.
- Foreign banks are occupying markets by various attractive advertising and promotional activities.
- Restless political condition in Bangladesh becomes a serious threat for Banks.
- Current law and order situation is not positive for the investment part.
- Pessimistic representation to the government and Bangladesh Bank.
As a bank Rupali Bank Limited has to do a lot of things for the betterment of the country.
It will enhance more public services and build up working teams to provide the best services to its valuable customers. It must be run in organized way and discipline must be ensured in all sphere of its performance.