Organizational Profile of Dutch Bangla Bank Limited

Organizational Profile

Introduction

All over the world, the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete both as local institution and foreign one.

The declaration of the Government’s bold and far-sighted decisions to allow banks in the private sectors to play its due role in the economy of Bangladesh, have started the process of creating new and dynamic financial institutions. One such institution is the Dutch-Bangla Bank Ltd. (DBBL). At present; the emergence of Dutch-Bangla Bank Ltd. is an important event in the private banking arena of Bangladesh.

Background of DBBL

Dutch-Bangla Bank Limited is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 inBangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4^th, 5^th and 6th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996.

Dutch Bangla Bank Limited (DBBL) is a public limited company by shares, incorporated in Bangladesh in the year 1995 under companies Act 1994.  With 30% equity holding, the Netherlands Development Finance company (FMO) of the Netherlands is the international co-sponsor of the Bank. Out of the rest 70%, 60% equity has been provided by prominent local entrepreneurs and industrialists & the rest 10% shares is the public issue. During the initial operating year (1996-1997) the bank received skill augmentation technical assistance from ABN Amro Bank of the Netherlands.

DBBL’s focus is to provide one counter service to clients covering: Commercial Banking (Deposit Accounts), Consumer Banking (Retail Baking) – Traveler Cheques- Foreign & Inland Remittances, Financial Services, Corporate Banking, Asset & liability management, Liquidity & capital Resources Management, Information technology, Human Resources.

DBBL Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. It’s fast, easy, secure and best of all.

DBBL, since its inception was active in various social activities, which increased manifold over the period of time and its growth. It is one of the fast growing leading online banks in private sector.  The emergence of Dutch-Bangla Bank Ltd. in the private sector is an important event in the banking area of Bangladesh. The Netherlands Development Finance Company (FMO) of the Netherlands is the international sponsor of the Bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe.

Dutch-Bangla Bank Ltd. came into existence with joint venture as a public limited company incorporated in Bangladesh on June 26, 1995 with the primary objectives to carry on all kinds of banking business in and outside of Bangladesh. DBBL has started its business with foreign bank. DBBL commenced its business as scheduled bank with effect from July 04, 1995 with one branch-Motijheel Branch, Dhaka, with a motto to grow as a leader in the banking arena of Bangladesh through better counseling and effect service to clients and thus to revitalize the economy of the country. All the branches are currently providing truly On-Line banking facility. DBBL resumed its operational activities initially with an authorized capital of Tk.400 million and paid up capital of Tk.202.14 million.

Mission, Vision and Objective of DBBL

Mission

Dutch Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility.” PROFIT ALONE” does not hold a central focus in the bank’s operation; because “man does not live by brain and butter alone “.

Vision

“To become a leading banking institution and play a pivotal role in the development of the country”

DUTCH BANGLA BANK dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel magic of a charm life that abounds with sprit of life and adventures that contributes towards human development.

Core Objectives

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that uphold and epitomize its vaunted marques “Your Trusted Partner”.

To establish relationship banking and improve service quality through development of Strategic Marketing Plans.

To remain one of the best banks in Bangladesh in terms of profitability and assets quality.

To introduce fully automated systems through integration of information technology.

To ensure an adequate rate of return on investment

To keep risk position at an acceptable range (including any off balance sheet risk)

The Board of Directors

 The Management Committee

The Existing Management Body:

K. Shamshi Tabrez                                          –     Managing Director

Abul Kashem Md. Shirin                                –     Deputy Managing Director

Md. Sayedul Hasan                                        –     Deputy Managing Director

Khan Tariqul Islam                                         –    Deputy Managing Director

Md. Mosaddiqur                                              –     Deputy Managing Director

Company Milestones

Particulars                                                                                                                   Date

Memorandum and Articles of Association signed by the sponsors:     June 26,1995

Incorporation of the Company                                                           :              July 04,1995

Commencement of Business                                                   :              July 04,1995

License obtained from Bangladesh Bank                                           :              July 23,1995

License obtained from opening first Branch(local Office)     :    December 21,1995

Opening of the first Branch of the Bank (Local Office)                    :             June 03,1996

Floating of Initial Public Offering(IPO) of shares

Publication of Prospectus                                                       :   December 24, 2000

Subscription Opened                                                              :       January 15, 2001

Subscription Closed                                                                :       January 24, 2001

Lottery held                                                                            :     February 24, 2001

Allotment of Shares                                                                :     February 28, 2001

   First trading of shares in Dhaka Stock Exchange Limited  :          March 21,2001

   Formation of Dutch Bangla Bank Foundation                                :             June 03,2001

   First trading of shares in Chittagong Stock Exchange Limited      :             June 06,2001

   First dividend declared (at the 5^th AGM)                                        :      February 20,2001

   Signing Agreement with Vendors for Truly Online Banking          :   September 30,2003

   Launching of DBBL Industrial Bond                                             :    December 03,2003

   Launching of Truly On-Line Banking Project                                 :    December 30,2004

(DBBL ………Branch & Annual report 2010)

Products and Services of DBBL

Products and services offered by DBBL

Retail Banking

Remittance and collection

Import and export handling and financing

Corporate Banking

Project Finance

Investment Banking

Consumer credit

Agriculture Loan

Real time any branch banking

24 Hours Banking through ATM

DBBL-NEXUS ATM & Debit card

DBBL-Maestro/Cirrus ATM & Debit card

DBBL Credit card

Internet Banking

SMS Banking

On line Banking through all Branches

Banking Products

   Various deposits:

Savings Deposit Account

Current Deposit Account

Short Term Deposit Account

Resident Foreign Currency Deposit

Foreign Currency Deposit

Convertible Taka Account

Non-Convertible Taka Account

Exporter’s FC Deposit(FBPAR)

Current Deposit Account-Bank

Short Term Deposit Account-Bank

Loan & Advances

Loan against Trust Receipt

Transport Loan

Consumer Credit Scheme

Real Estate Loan (Res. & Comm.)

Loan Against Accepted Bill

Industrial Term Loan

Agricultural Term Loan

Lease Finance

Other Term Loan

FMO Local currency Loan for SME

FMO Foreign currency Loan

Cash Credit (Hypothecation)

Small Shop Financing Scheme

Foreign Trade

DBBL extends finance to the importers in the form of:

Opening of L/C (Foreign/Local)

Credit against Trust Receipt for retirement of import bills.

Short term & medium term loans for installation of imported

Import Finance

DBBL extends finance to the importers in the form of:

1. Opening of L/C

2. Credit against Trust Receipt for retirement of import bills.

Export Finance

Pre-Shipment Finance

      Pre-Shipment finance in the form of:

      I) Opening of Back-to-Back L/C
II) Export Cash Credit

2. Post-Shipment Finance

                Post-Shipment finance in the form of:

    I) Foreign/Local Documentary Bills Purchase
II) Export Credit Guarantee
III) Finance against cash incentive

Foreign Remittance

DBBL provides premium quality service for repatriation and collection of remittance with the help of its first class correspondents and trained personnel. By introducing on-line banking service and becoming a SWIFT Alliance Access Member, which enable its branches to send and receive payment instruction directly, which helps provide premium services. Remittance services provided by DBBL are:

Inward Remittance:       Draft, TT

Outward Remittance:    FDD, TT, TC and Cash (FC)

Western Union

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned worldwide reputation in transferring money from one country to another country within the shortest possible time. Dutch-Bangla Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. as on 14th February 2006.

 DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. It’s fast, easy, secure and best of all.

(DBBL ………… Branch)

Chapter: 5

Conclusions & Recommendation

Conclusions

Electronic banking is relatively a new concept for Bangladesh. It is not long ago when people wait in queue for long time with token in hand and collects money. But today the scenario is a little different at least in the urban areas. With the blessing of modern banking facility, people can enjoy 24 hours banking facility without going to the bank physically even from client’s residence through Internet Banking or through ATM, POS terminals. At the same we need to be very careful about the fraud. Although online banking fraud in large scale is yet to be reported in Bangladesh we need to take all the necessary measures to prevent it. This can be done through proper education on information technology & sufficient software & hardware support. Proper implementation of online banking will create a positive impact on economy. Dutch-Bangla Bank Limited is the leader in the Electronic banking among the private banks of Bangladesh. It has employed almost all types of modern day banking facilities to provide convenience to its customers. All automated delivery channels are providing round the clock service through the mentioned hardware and software. Due to its contribution to the society as well as national economy, it has made a clear distinction and has occupied a separate and respected position in the banking sector of Bangladesh. Expanding its business arena and volume, it has also accelerated its contribution to the underprivileged of the society. DBBL contributes 5% of its profit for helping the destitute to develop their standard of living and earn a respectable way to keep up with their everyday activity. Considering the issues discussed earlier we may conclude that the Dutch-Bangla Bank Ltd. is not only a profit making organization, it is also a perfect “Corporate Citizen” who always carry out its duties of corporate social responsibilities.  As banking sector is service oriented, therefore, banks of Bangladesh must move towards fully online banking. This will enable them to provide round the clock services through all the service channels without deployment of much manpower thus saving time & money and most important of all ensuring transaction security.

I think DBBL plays an important role for the economic growth of the country by providing its banking services through over the counter and the on-line services. It seems to me that in DBBL, there is a sufficient opportunity to gain the practical knowledge about the Electronic Banking Activities.

Recommendations

To improve the e-banking services of DBBL, I have the following suggestions for the bank-

DBBL should provide adequate training and technological support to develop the manpower or personnel working in the e-banking section.

 DBBL should have a strong strategic plan for automated market development.

The bank should develop integrated e-banking software within a short period of time. Because I think excess load will be the cause of a big damage for the existing software.

 A specialized, self-owned organization can be established by the bank so that they can develop the infrastructure of e-banking in Bangladesh that will also be the social responsibility for them.

  A standard carrier design needs to be formed for the computer experts within the bank so that they do not feel interest to go abroad for lucrative financial offer.

Clearinghouse operations are demanded to be fully automated. If it could be implemented, then banks will be motivated to implement in front services counter of electronic bank.

To meet the demand of current and prospective clients, banking software to be produced in such that the coordinated effort can supply all information from the front desk.

The bank requires systemic and planned budget for expanding e-banking.

To provide the nationwide & countrywide services, the bank should expand the number of branches of ATM booth at zonal level so that the most of the people of the country can get the benefit, which live in zonal level, rural level.

To take initiative for implementing automated financial sector by coordinate effort of the central bank along with the commercial bank.

Credit card services should be implemented rapidly. And the restriction for getting the credit card should reduce.

Sometimes I found that the top level officers were so much lazy to do their work, this is a great problem for the officers because without his authorization any transaction will not be completed. If they take much time then the total procedure will be delayed, because the online system is a one channel and step by step procedure. So the lop level managers should have very much conscious about their task.

DBBL should increase their branch so that they can pick up most of the market share among the other online bank.

I worked in Savar Bazar Branch and I found that the interior design is not so attractive that can attract the customers. They should impose their attention about that.

DBBL have to build up their customer services desk and call center for the betterment of their services.

References

Report and prospectus:

Dutch Bangla Bank Ltd, (2010), Annual Report, Dutch Bangla Bank Ltd, Dhaka, Bangladesh.

Dutch Bangla Bank Ltd, (2009), Annual Report, Dutch Bangla Bank Ltd, Dhaka, Bangladesh.

Dutch Bangla Bank Ltd, (2008), Annual Report, Dutch Bangla Bank Ltd, Dhaka, Bangladesh

Prospectus of Dutch Bangla Bank Ltd. (2010)

Leaflet And user guide.

Md. Niamat Ullah Bokul (Senior Officer) in DBBL Savar Bazar Branch.

Dutch Bangla Bank Savar Bazar Branch.

Web sites:

www. dbbl.bd.com,

www.dutchbanglabank.com