Objectives
As the central Bank of Bangladesh, the broad objectives of the Bank are :
Functions
Bangladesh Bank performs all the functions that a central bank of any country is expected to perform, and such functions include maintaining the price stability through economic and monetary policy measures, managing the country’s foreign exchange and the gold reserve and regulating the banking sector of the country. Like all other central banks across the globe, Bangladesh Bank is both the Government’s banker and the banker’s bank, a “Lender of the Last Resort”. Bangladesh Bank, like most of the central banks of different countries, exercises monopoly over the issue of currency and the banknotes. Except for the 1 and 2 taka notes, it issues all other denominations of Bangladeshi Taka.
Bangladesh Bank is empowered to act as the watchdog of the country’s banking system, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system. No bank can commence banking business in Bangladesh and no existing bank can open a new branch in or outside the country or shift any branch from one place to another without obtaining a license/permission from the Bangladesh Bank.
The highest official in the bank is the Governor (currently Dr. Atiur Rahman). The Governor chairs the Board of Director. The Executive Staff, also headed by the Governor, are responsible for the day to day affairs.
Director
Governor
Deputy Governor
Economic Advisor
Executive Director
The new governor of Bangladesh Bank will be Kamrul Hasan Zoardar.
Commercial Banks
The banking system of Bangladesh is dominated by the 4 Nationalized Commercial Banks, which together controlled more than 54% of deposits and operated 3388 branches (54% of the total) as of December 31, 2004 The nationalized commercial banks are:
Private Commercial Banks
Private Banks are the highest growth sector due to the dismal performances of government banks (above). They tend to offer better service and products.
Specialized Banks and Credit Agencies
Out of the specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank) were created to meet the credit needs of the agricultural sector while the other two ( Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans to the industrial sector. The Specialized banks are:
Various Schemes and Banking Products of Formal Banking
Product & Services:
Deposit Products:
1. Current A/C
2. Savings Bank Deposit A/C
3. Short Term Deposit A/C
4. Term Deposit A/C
5. Premium Term Deposit A/C
6. Instant Earnings Term Deposit A/C
7. Special Savings Scheme
8. Special Fixed Deposit Scheme
9. NFCD
10. RFCD
11. Money Double Program
Loans and Advance Products
Cards
Remittance Products
Services
Brokerage House
Treasury Service
Remittance Service
Categories of Overall Banking Activities:
Banks activities can be divided into three categories. These are as follows:-
What is General banking Activities?
General Banking (GB): It is the starting point of all the banking operation. It does the most important and basic works of the bank. It also plays a vital role in deposit mobilization. A bank starts its operation providing services to the customers by its general banking activities. The efficiency of general banking activity that provided by each bank reflects the whole service given by that bank. With the increasing competition customers are mostly impressed by the efficiency of this department. The whole general banking activity is consisted of receiving deposit, remitting fund, and meeting the demand of customers.
General Banking Section:
Account Opening Section:
The relationship between banker and customer begins with the opening of an account by the customer. Opening of an account binds the customer into a contractual relationship under a legal framework of the “Contract Act -1872”. But selection of a customer for opening an account is very crucial for a bank. So Banks takes the highest caution in this regard.
Banks opens the following accounts for its customers
Current Account:
A current deposit account may be operated in several times during a working day. There is no restriction on the number and the amount of withdraws from a current account and the banker does not allow any interest on the current account. There are two facilities for the people who open a current account. They are:-
A person can open a current a/c or any entity. The entity can be a partnership firm, limited company, proprietorship firm, association, clubs etc. For opening a current account of the above, the requirements and steps, which are followed by this branch, are like: –
There is an individual application form for opening personal current a/c. The person, who wants to open this type of a/c, is said to fulfill the following requirement:
a) Name/ Father’s Name/ Husband’s Name:
b) Present and Permanent Address:
c) Occupation:
d) Mandate in Writing:
e) Declaration of Nominee:
f) Letter of Introduction:
g) Specimen Signature:
h) Passport Size Photograph:
i) Initial deposit.
For Join Stock Companies, Association, Clubs etc:
In case of opening a current a/c of join stock companies, association, clubs etc. the following requirements are said to fulfill:
a) True copies of certificate of incorporation or registration (in case of companies and registered bodies).
b) True copies of certificate of commencement of business (in case of limited company).
c) True copies of memorandum and articles of association (in case of limited company). The rules of regulation by laws (in case of associations, clubs etc.)
d) True copy of resolution of the Board of Directors of Managing committee / Governing Body, regarding conduct of account.
e) Certificate list containing names and signature of the Board of Directors/ Officer Bearers.
To open a current a/c on the name of any partnership or proprietorship company, the following document are required:
a) Filled up application form stating about the name and address of the firm.
b) Partnership deed.
c) Trade License.
d) Two copies of photographs.
e) Endorsement of an a/c holder of the same branch. (for partnership companies).
f) Undertaking / declaration about the partnership is taken by the bank in a white paper (for proprietorship firm)
The document are required by the bank to open a current a/c be:
a) Copy of the certificate of incorporation or registration.
b) Copy of the certificate of business.
c) True copy of memorandum of association and articles of association abide by laws.
d) True copy of resolution of the Board of Directors / Managing Committee /Governing Body regarding conduct of the account.
In order to open an account, the customer is first of all asked to fill up the application form given from the bank. The bank requires few documents of the client due to the producers, such as proposal for opening an a/c, name and full address (both present and permanent).
Savings Account:
Short-term Deposit Account:
A deposit slip shall be prepared crediting the STD a/c with the amount of the deposit.
Cash————-Dr.
STD a/c (Party)———Cr.
If the amount shall be deposited by check or transfer of a/c, the following entries shall be passed—
Party C/D, S/D a/c———-Dr.
STD a/c——————————–Cr.
The a/c opening form shall be pasted in the passing file in numerical order. The credit voucher shall be passed in the STD a/c of the party. In case of letter of authority to debit the STD a/c of the customer, voucher will be prepared and the following entries shall be passed:-
STD a/c (Party)—————Dr.
C/D (Party)————————Cr.
Minimum 7 days notice period is required for withdrawal of any sum of money from STD a/c. Banker is not legally liable to the customer, if the check is dishonored under the following conditions, although the check is properly drawn:
This is a letter of certification, from a person, who is a valid customer of that particular branch and maintaining any kind of a/c. usually a customer from other branch is not allowed to be the introducer, but it is permitted. The process of introducing a new client can be done on the form itself. There is a space in the application where the introducer will write his/her a/c no. and sign his/her specimen signature. It always advisable on the part of the banker to allow the prospective customer to open an a/c only with a proper introduction from a responsible person, known to both the parties.
The person who wants to open an a/c can mention one or two nominee. The application will give a declaration in the space given on the a/c opening form, stating the name and father’s name, age address, relation and percentage of share (if more than one). The a/c holder can change the nominee any time and it will be valid, only after the of the a/c holder.
The applicant will sign on the application and he will be provided with an extra paper where he will sign three or more signatures, which he has to maintain all through the duration of the account.
At the time of the opening of a new a/c, this concerned branched always takes an interview with prospective customer so as to obviate the chances of preparation of any fraud at the letter stage.
It is always a common practice among the bankers to allow a new customer to open an a/c only in cash.
If any party wants his/her a/c to be operated by some body else, s/he will provide the banker in writing statement about the operator.
The banker should verify some of the important documents, like the Memorandum of Association, Article Association by laws Copy etc. In verification of certain other documents like, trust Deed Probate, Letter of Administration etc. may be needed. Conversant with the provision of special acts, since a banker is to deal with different classes of customers, s/he has to be thoroughly conversant with certain laws.
The customer is supplied with a pay in slip book to use for depositing cash or check of bill into a/c. The customer is also supplied with a checkbook for drawing money as and when the customer wishes, which normally contains 10 to 50 bank forms. If the customer does not like to have a checkbook, then s/he can make use of withdrawal form for withdrawing money. But there is no use of such kind of form in this branch. In addition to the above, a customer is given a passbook, which reflects the customer’s a/c in the banker’s ledger. It usually contains the rules and regulations of the bank and terms and conditions of deposits.
Fixed Deposit Account:
A fixed deposit a/c is repayable after the expiry of a predetermined period fixed by the customer himself. The period varies from three months to five years. The customer may open his/her a/c for different time periods, which may be for three months, six months, one year, two years, three years, four years, five years.
Though FDR is an a/c, it is something different from other a/c. FDR is a long-term deposit. Usually customers are allowed to open this a/c for a certain period. The rate of interest varies in accordance with the terms of deposit.
The amount of FDR is payable once at a time. After the term for which the a/c was opened, the FDR gets its maturity. Paying the principle amount plus interest less income tax then fulfills the claim.
It is a new project, which is a scheme like DPS. The installment payment is to be made to the bank within the first 10 days of each month. It can be opened for 5years and 10 years maturity for Tk. 500 and 10000.
Special Fixed Deposit Scheme:
Local Remittance:
Cash handling from one place to another is risky. So, bank remits funds on behalf of the customers to save them from any mishaps through the network of their branches. There are four modes of remitting money from one place to another. These are –
Clearing Activities:
Outward Bill for Collection:
The instrument of the Bank includes checks; pay order, demand draft etc. The Bank collects its own instrument from other banks through Clearing House as the clients with no charges or commissions required to perform this service submit them in different locations.
Inward Bill for Collection:
The Bank provides the instruments to other banks through Clearing House, which have been collected from different clients. It performs this kind of service for its clients without requiring any charges or commission.
Locker Service:
Locker services are available for the clients in exchange of fees. In this context the client gets a locker in Bank with a key and the permission to keep goods or documents with the consent of the Bank.
Online Banking:
Coputerization of the Branches and Head Office as well is underway with a view to providing guality and prompt service to the customers. Now the Bank starts, On Line Banking.
ATM Service & Credit Card:
The Bank to extend modern banking faciliy to the customers allowing 24 hrs accesses to any ATM dispenser situated . The network will be expanded phase by phase in other parts of the country. Recently they also established alots of ATM BOOTH as well.
A secured loan is a loan in which the borrower pledges some asset (e.g., a car or property) as collateral (i.e., security) for the loan.
A mortgage loan is a very common type of debt instrument, used to purchase real estate. Under this arrangement, the money is used to purchase the property. Commercial banks, however, are given security – a lien on the title to the house – until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.
In the past, commercial banks have not been greatly interested in real estate loans and have placed only a relatively small percentage of their assets in mortgages. As their name implies, such financial institutions secured their earning primarily from commercial and consumer loans and left the major task of home financing to others. However, due to changes in banking laws and policies, commercial banks are increasingly active in home financing.
Changes in banking laws now allow commercial banks to make home mortgage loans on a more liberal basis than ever before. In acquiring mortgages on real estate, these institutions follow two main practices. First, some of the banks maintain active and well-organized departments whose primary function is to compete actively for real estate loans. In areas lacking specialized real estate financial institutions, these banks become the source for residential and farm mortgage loans. Second, the banks acquire mortgages by simply purchasing them from mortgage bankers or dealers.
In addition, dealer service companies, which were originally used to obtain car loans for permanent lenders such as commercial banks, wanted to broaden their activity beyond their local area. In recent years, however, such companies have concentrated on acquiring mobile home loans in volume for both commercial banks and savings and loan associations. Service companies obtain these loans from retail dealers, usually on a no recourse basis. Almost all bank/service company agreements contain a credit insurance policy that protects the lender if the consumer defaults.
3. Unsecured loan
Unsecured loans are monetary loans that are not secured against the borrowers assets (i.e., no collateral is involved). These may be available from financial institutions under many different guises or marketing packages:
There are so many banks in Bangladesh providing SME banking services. But I choose 5 well reputed banks. They are also providing SME banking service. Not only this, they are doing this from the very beginning of the SME banking.
The Banks are:
ü AB Bank
ü BRAC Bank
ü Dutch Bangla Bank Limited
ü EXIM Bank
ü Standard Chartered Bank
AB Bank
Company Profile
Background of AB Bank Limited
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982.
AB Bank is known as one of leading bank of the country since its commencement 29 years ago. It continues to remain updated with the latest products and services, considering consumer and client perspectives. AB Bank has thus been able to keep their consumer’s and client’s trust while upholding their reliability, across time.
During the last 29 years, AB Bank Limited has opened 82 Branches in different Business Centers of the country, one foreign Branch in Mumbai, India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To facilitate cross border trade and payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World.
In spite of adverse market conditions, AB Bank Limited which turned 28 this year, concluded the 2008 financial year with good results. The Bank’s consolidated profit after taxes amounted to Taka 230 cr which is 21% higher than that of 2007. The asset base of AB grew by 32% from 2007 to stand at over Tk 8,400 cr as at the end of 2008.
The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk. 1518 cr ie., 28.45% while the diversified Loan Portfolio grew by over 30% during the year and recorded a Tk 1579 cr increase. Foreign Trade Business handled was Tk 9,898 cr indicating a growth of over 40% in 2008.
The Bank maintained its sound credit rating in 2008 to that of the previous year. The Credit Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long term and ST-2 rating in the short Term.
AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past identity – an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five long years. As a result of this decision, the bank chose to rename itself as AB Bank Limited and the Bangladesh Bank put its affirmative stamp on November 14, 2007.
The Bank decided to change its traditional color and logo to bring about a fresh approach in the financial world; an approach, which like its new logo is based on bonding, and trust. The bank has developed its logo considering the contemporary time. The new logo represents our cultural “Sheetal pati” as it reflects the bonding with its clientele and fulfilling their every need. Thus the new spirit of AB is “Bonding”. The Logo of the bank is primarily “red”, as red represents velocity of speed and purity. Our new logo innovates, bonding of affiliates that generate changes considering its customer demand. AB Bank launched the new Logo on its 25th Anniversary year.
AB Bank commits to nation to take a lead in the Banking sector through not only its strong financial position, but also through innovation of products and services. It also ensures creating higher value for its respected customers and shareholders. The bank has focused to bring services at the doorstep of its customers, and to bring millions into banking channels those who are outside the mainstream banking arena. Innovative products and services were introduced in the field of Small and Medium Enterprise (SME) credit, Women’s Entrepreneur, Consumer Loans, Debit and Credit Cards (Local & International), ATMs, Internet and SMS Banking, Remittance Services, Treasury Products and Services, Structured Finance for Corporate, strengthening and expanding its Islamic Banking activities, Investment Banking, specialized products and services for NRBs, Priority Banking, and Customer Care. The Bank has successfully completed its automation project in mid-2008. It envisages enabling customers to get banking services within the comfort of their homes and offices.
AB Bank has continuously invests into its biggest asset, the human resource to drive forward with its mission “to be the best performing bank in the country.” The bank has introduced Dress Code for its employees. Male employees wear designed ties and females wear Sharee or Salwar Kamiz, all the dresses are consisted with the unique AB Bank logo.
AB is recognized as the people’s choice, catering to the satisfaction of its cliental. Their satisfaction is AB’s success.
Corporate Information of AB Bank Limited
Name of the Company : AB Bank Ltd
Legal Form: A public limited company incorporated on 31st December, 1981 under the Companies Act, 1913 and listed in the Dhaka Stock Exchange Ltd and Chittagong Stock Exchange Ltd.
Vision & Mission
Vision Statement
“To be the trendsetter for innovative banking with excellence & perfection”
Mission Statement
“To be the best performing bank in the country”
Core Values
Our Compliances
We consider adherence to national policies and objectives a priority for giving our customers the best financial support with corporate integrity, meaning a fully compliant bank along with involvement in social development.
Our Customers
We give the best priority on our customer demand and through our endless effort we assure the best satisfaction to our customers.
Our Shareholders
We assure the best return to our shareholders’ by commenced performance over a rolling year.
Our Team Members
We provide secure, satisfying employment, ensuring the contribution of each individual to the success of ABBL.
Products & Services
Personal Banking Loan Products
Product Name | Personal Loan | ||||
Purpose | Personal loan may be availed for any purpose deemed appropriate for lifestyle and personal exigencies including purchase of household items, marriage, travel, medical treatment, CNG conversion, Festival, renovation etc. | ||||
Loan Limit | MinimumTk.50,000/- Maximum Tk. 5,00,000/- ( upto Tk. Ten lac covered by tangible security acceptable to the bank.) | ||||
Charges | Applicationfee: Tk.500/- Processing fee: 1% on the approved loan amount or Tk. 2000/- whichever is higher | ||||
Tenor | Min 12 months Max 36 months Max 60 months (for house/office renovation loan) | ||||
Rate of Interest | 14.50% p.a. – 17.50% p.a. | ||||
Security | Hypothecation of the product to be purchased. | ||||
Guarantee | Personal guarantee of spouse/parents only. | ||||
Product Name | Auto Loan | ||||
Purpose |
| ||||
Loan Limit | 80% of the value of the brand new car or reconditioned car but not exceeding BDT 20,00,000/- | ||||
Charges | Application fee: Tk. 500/- Processing fee: 1% on the approved loan amount or Tk. 5000.00 whichever is higher | ||||
Tenor | Reconditioned Car: Max 60 months Brand new Car: Max 72 months | ||||
Rate of Interest | 14.50% p.a. – 17.50% p.a. | ||||
Security | Hypothecation of the vehicle to be purchased. | ||||
Guarantee | Personal guarantee of spouse/ parents only. | ||||
Product Name | Education Loan (disbursed to parents/guardian) | ||||
Purpose | To assist Parents/guardians for Admission/Education Fees, Semester Fees, Study abroad for their children/wards | ||||
Loan Limit | Minimum Tk. 50,000/- Maximum Tk. 5,00,000/- (upto Tk.Ten lac covered by tangible security acceptable to the bank) | ||||
Charges | Application fee: Tk. 500/- Processing fee: 1% on the approved loan amount or Tk. 1000.00 whichever is higher | ||||
Tenor | Min 12 months Max 48 months | ||||
Rate of Interest | 14.50% p.a. – 17.50% p.a. | ||||
Guarantee | Personal guarantee of spouse/parents only | ||||
Product Name | Education Loan (for executive) | ||||
Purpose | To assist Executives pursue Higher Studies/professional qualification at local/overseas institutions | ||||
Loan Amount | Minimum Tk. 50,000/- Maximum Tk. 5,00,000/- (upto Tk.Ten lac covered by tangible security acceptable to the bank) | ||||
Charges | Application fee: Tk. 500/- Processing fee: 1% on the approved loan amount or Tk. 1000.00 whichever is higher | ||||
Tenor | Min 12 months Max 48 months | ||||
Rate of Interest | 14.50% p.a. – 17.50% p.a. | ||||
Guarantee | Personal guarantee of spouse/parents | ||||
Product Name | Home Loan | ||||
Purpose | 1. Purchase of apartment/house within the Municipal areas of town/cities in Bangladesh. 2. Purchase of independent house not more than 5 years old. 3. Completion of construction of a new house. | ||||
Loan Limit | Minimum BDT 500,000/- Maximum 80% of the value of the flat or construction cost for completion but not more than Tk. 1,00,000,00/- | ||||
Charges | Application fee: Tk. 500/- Processing fee: 1% on the approved loan amount | ||||
Tenor |
| ||||
Rate of Interest | 13.00% p.a. | ||||
Security | Registered mortgage of property supported by a registered irrevocable general power of attorney | ||||
Guarantee | Personal guarantee of spouse/ parents/legal heir | ||||
Secured Loan
Product Name | Personal Loan |
Purpose | To meet personal requirement of fund |
Loan Amount | Maximum 95% of the present value of the security |
Charges | Processing fee: Tk. 1000/- |
Tenor | Min 12 months Max 36 months |
Rate of Interest | For ABBL FDR, 3% higher than the rate of deposit 12.00 % p.a. -15.00 % p.a. (for other Bank FDR) |
Security | Lien over FDR, ICB Unit Certificate, RFCD, NFCD, CD account(s) etc. One personal guarantee in case of third party cash collateral |
Product Name | Personal Overdraft |
Purpose | To meet personal requirement of fund |
Loan Amount | Maximum 95% of the present value of the security |
Charges | Processing fee: Tk. 1000/- |
Tenor | Revolving with annual review |
Rate of Interest | For ABBL FDR, 3% higher than the rate of deposit 12.00 % p.a. -15.00 % p.a. (for other Bank FDR) |
Security | Lien over FDR, ICB Unit Certificate, RFCD, NFCD, CD account(s) etc. One personal guarantee in case of third party cash collateral |
Corporate Lending
Our specialist teams offers a comprehensive service providing finance to large and medium-sized business based in Bangladesh. For more information as to how we might best meet your corporate debt needs, please contact us at our Corporate Head Office.
Structure Finance
We have a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors, management teams and corporates. Also we provide corporate advisory services. We aim to provide tailored financing solution with a dedicated team who can rapidly respond to client needs.
Following are some of the products and financial tools of Corporate Banking:
SME Loan
Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserve all out attention in our plans, projections and forecasting.
As such the bank has emphasized on the following issues:
SME Sectors in which AB Bank has participated so far:
SL | Sector | ABBL Exposure (Limit) (Fig. in Lac Tk.) |
1 | Agro- Business | 12,717.56 |
2 | Cement Power, Glass | 38,691.92 |
3 | Consumer Products | 21,855.00 |
4 | Edible Oil | 36,057.53 |
5 | Engineering & Construction | 18,106.42 |
6 | Financial Institution | 1,414.70 |
7 | Food & Beverage | 27,044.24 |
8 | Hotel | 2,505.26 |
9 | Health Care | 3,928.62 |
10 | Printing & Packaging | 11,867.61 |
11 | Real Estate | 10,451.49 |
12 | Micro-finance | 5,763.15 |
13 | Export | 9,441.63 |
14 | RMG & Backward Linkage | 94,826.13 |
15 | Ship Breaking | 18,029.20 |
16 | Steel | 42,824.97 |
17 | Telecom & Computer Accessories | 11,479.89 |
18 | Trading | 77,579.89 |
Total ( including syndicated exposure) | 444,585.21 | |
Less Syndicated Exposure | 51,560.29 | |
Total Large Loan & Project Finance portfolio without syndicated exposure | 3930,24.92 |
Facilities offered to NRBs
Opening of Foreign Currency A/C: We open Foreign Currency Account in USD/GBP/EUR/JPY for NRBs. Foreign Currency can be remitted by the Nationals of Bangladesh living Abroad earned by them as wage earners or from other sources. The deposit amount can also be used for remittance to other countries as per their requirement. Nominee of Account holder can also able to operate this Account.
NFCD: We issued Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different tenure. Interest is paid in respective Foreign Currency. Rates of Interest are published in our daily Exchange Rate.
Wage Earners Development Bond: These Bonds can be issued from the balance of the FC account with tenure for five years. Rate of interest is 12% p.a. in BDT.
USD Premium Bond: These Bonds can be issued from the balance of the FC account with a tenure for Three years. Rate of interest is 7.5% p.a. in BDT.
USD Investment Bond: These Bonds can be issued from the balance of the FC account with a tenure for Three years. Rate of interest is 6.5% p.a. in USD.
In addition to the above, we also have Drawing Arrangements with 20 (Twenty) Exchange/Money Transfer Remittance Houses all over the globe to facilitate fast, reliable and hassle-free inward remittance to the expatriate Bangladeshis around the world. We also have special arrangements to credit Beneficiary’s account maintained with us on the same day through our extensive real time on-line network.
List of Exchange / Money Transfer Remittance Houses are as follows:
To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB Bank has established Islamic Banking Wing and started its functioning by opening full-fledged Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at 82, Kakrail, Ramna, Dhaka. Prominent Islami Banker Mr. M. Azizul Huq has joined the Bank as its Islamic Banking Consultant. A dedicated team of experienced Islamic bankers is working under his active guidance both at head office and branch level. A competent Shariah Council consisting of Islamic scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh has also been formed to guide the Islamic banking affairs. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic branches in the near future. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh.
The goals and objectives of Islamic banking Wing are as under:
Under this wing AB Bank extends the following Islamic banking services:
Under Deposit services the following services are being rendered:
Besides Mudaraba Hajj Deposit Scheme and some other schemes are under process.
Investment Services
AB Bank Islmic Banking Wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc. under following modes:
Sector of Investment:
Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment is permissible under Islamic Shariah.
Limit of Investment:
Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time.
Foreign Trade:
Islamic Banking Wing provides the following services at its foreign trade desks:
AB Bank Islamic Banking Wing has been continuously trying to expand it’s service horizon keeping the necessity of valued clients in view and upholding the principle of Islamic Shariah.
6.1. AB Investment Limited (ABIL)
AB Investment Limited, a subsidiary of AB Bank Limited incorporated under the Companies Act 1994 and running its Merchant Banking operations being licensed by the Securities and Exchange Commission.
ABIL’s Head Office is located at WW Tower (Level-7), 68, Motijheel C/A, Dhaka-1000. ABIL has two branch offices at Agrabad, Chittagong and Chowhatta, Sylhet.
6.2. Custodial Service
Customers:
Investors who are interested to invest in the Bangladesh Capital Market
• Non Resident Bangladeshi (NRBs)
• Foreign Institutional and individual clients
• Local Institutions
• Sponsors’ group and High net worth client
Services:
• Safe custody of client securities
• Foreign Trade Execution and Settlement
• Share transfer in the name of client
• Complete the Dematerialization process as per client request
• IPO, Private Placement & Right share subscription as per client instruction
• All types of corporate action that includes cash dividend, bonus share and right share collection
• Open BO account and facilitate opening of Trading Account
• Instant information regarding client securities position as per their request
• Quarterly reporting to the client by Custodial Department
Account Opening Procedure
Account opening formalities
6.3. Brokerage Service
Introduction:
AB Securities Limited (ABSL) is a subsidiary company of AB Bank Limited having holding 99.60% shares of the ABSL. Earlier, AB Bank Limited provided stock broking services through Arab Bangladesh Bank Foundation (ABBF) since 2006. Incompliance with Bangladesh Bank’s directives, AB Bank Limited formed separate subsidiary company under Company Act 1994 in name of AB Securities Limited (ABSL) and shifted its stock broking services from ABBF to ABSL. ABSL started its new journey on 2nd August, 2010 with improved customer service, highly skilled professionals and state of art technologies. Memberships of both Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited has been transferred in name of ABSL to provide more efficient and professional broking services to the capital market investors.
Services of ABSL:
AB Securities Limited (ABSL) is one of the country’s leading securities broker houses of Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101). ABSL has started its operation on 2nd August 2010. We have already started our operation in full swing through our corporate head office and Chittagong Branch Office and Chowhatta (Sylhet) Branch Office. We are planning to establish nationwide branch network as well as step into international arena.
Services:
We provide broking services under following categories:
a) Individual & Joint Account (Local, NRB & Foreign)
b) Institution Investment Account (Local and Foreign)
6.4. Future Products
Expansion
to extend our Merchant Banking services across the country, MBW has already launched its operation in Agrabad (Chittagong). We are going to open 3 new service networks in Mohakhali (Dhaka), Uttara (Dhaka) and Sylhet soon.
New Business
In addition, AB Bank will also expand its operations in the investment banking in the following areas:
Business Area | Status |
Islamic Capital Market Products | Processing |
Derivatives Products | Supporting infrastructure going to be prepared |
Asset Management / Mutual Fund | We are planning to launch and manage Mutual Fund in future. |
“The most perfect accompaniment to life”
Makes your life comfortable
Smart way of payment
No need to carry cash
Large ATM and POS network
lower annual fees
No hidden charge
Who can apply for a card?
If you are maintaining an account with any of the branches of ABBL, you are able to have ABBL Visa Debit Card. Only thing you need to do is, visit your branch and fill up the Application form and submit it. You will receive your card within 7 working days.
Tips for usage
Card Activation
• After receiving the card, sign the acknowledgement slip and send it to Card Division or any branch of
ABBL or call Card Division for activation.
• Put your signature on the signature panel at the back of your card.
Caution during making transactions
• Please do not let your card be taken out of your sight at any merchant outlet to prevent possible
Misuse
• After using your card at a merchant outlet, please ensure that the card returned to you is yours
• Before signing the Sales Slip check at the amount charged
• Retain your copy of the Sales Slip of all transactions until they appear in your Card Account Statement
for your future reference
PIN Maintenance
• Destroy the PIN mailer after memorizing your PIN
• Do not write the PIN on the card or keep the PIN inside your wallet
• Change the PIN every month
For Lost/Stolen Card
If the card is lost or stolen, simply call AB Bank’s Help Desk at 9558510. You also can report the loss by fax to ABBL, Card Division immediately.
Lost Debit/ Credit Card
For lost Debit / Credit Card please email to the following address: cardsteam@abbank.com.bd or call our Card Division at 9558510. Your card will be replaced within 4-5 working days, and will be couriered to your mailing address you provided in your card application form.
Note: Please find Lost/ stolen Card Application Form in the “Forms Center”
Address Change
For address change in your Card please email to the following address: cardsteam@abbank.com.bd or call our Card Division at 9558510. Your new address will be updated in the Card Management System.
Note: Please find Card address change Application Form in the “Forms Center”
Looking for a safe storage place for your valuables?
A Safe Deposit Locker with AB Bank is the solution to your concern. Located at select branches in cities all over the country, our lockers ensure the safe keeping of your valuables.
Advantages / Key Benefits:
Eligibility:
An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc may hire a locker.
Nomination for Safe Deposit Locker:
Terms & Conditions:
Schedule of Charges & Commissions
General
This guide is intended to give you a clear picture of the fees that we charge for your outmost commonly used services. We hope that the simple tables as stated in this guide will help you manage your money more effectively. If you have any queries about the charges listed in the guide, kindly visit or contact any of our Branch Offices for the exact details or seek your own professional help.
N. B.
1.VAT is applicable @15% on all fees and commissions effective from 1st July 2002, as per Government circular no. SRO 117-Law/ 2002/342-VAT, dated 6 June 2002 and SRO#171-Law/2004/ 417-VAT dated June 10, 2004.
2.VAT is not applicable for Commission, Fees or Charges for back to back LC against Master LC, Local back to back LC and Export related all LC’s including Cash LC.
3.Any Government Taxes, Duties or other charges will be recovered in addition to the foregoing and as per Government Regulations.
4. Stamp charges are levied where applicable.
5.Correspondent/Other Bank charges, if any, will be additionally recovered from customers.
6.The Bank reserves the right to assess charges on transaction which are not covered by this schedule and to amend without prior notice the terms, conditions or rate stated in this schedule.
7.Any service, which is not mentioned above, will be charged separately as per the charges.
8.If the Bank provides services to its clients at reduced rate to encourage their clients, VAT to be collected as per Standard Charge i.e. as per Schedule of Charges.
SME Banking
Considering the volume, role and contribution of the SMEs, AB Bank has been patronizing this sector by extending credit facility of different types and tenor. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserves all out attention in plans, projection and forecasting.
As such the bank has emphasized on the following issues:
SME Sector in which AB Bank has participated so far:
ABBL offers the following SME loan products:
I. Uddog loan.
II. Goti loan.
III. Aparajita loan.
IV. Proshar loan.
V. Choto puji loan.
VI. Digun loan.
Large Loan & Project Finance
BRAC Bank
Company Profile
BRAC Bank is a fully operational Commercial Bank. Since inception in July 2001, the Bank’s footprint has grown to 56 branches, 30 SME Service Centers, 427 SME unit offices and 112 ATM sites across the country services are :
Corporate Vision
Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh.
Corporate Mission
Sustained growth in Small & Medium Enterprise sector | |
Continuous low-cost deposit Growth with controlled growth in retail assets. | |
Corporate Assets to be funded through self-liability mobilization. Growth in Assets through syndications and investment in faster growing sectors. | |
Continuous endeavor to increase non-funded income | |
Keep our debt charges at 2% to maintain a steady profitable growth | |
Achieve efficient synergies between the bank’s branches, SME unit offices and BRAC field offices for delivery of remittance and Bank’s other products and services | |
Manage various lines of business in a full controlled environment with no compromise on service quality | |
Keep a divers, far flung team fully controlled environment with no compromise on service quality | |
Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality. |
Core Values
Our Strength emanates from our owner – BRAC. This means, we will hold the following values and will be guided by BRAC as we do our work.
Value the fact that one is a member of the BRAC family | |
Creating an honest, open and enabling environment | |
Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit | |
Strive for profit & sound growth | |
Work as team to serve the best interest of our owners | |
Relentless in pursuit of business innovation and improvement | |
Value and respect people and make decisions based on merit | |
Base recognition and reward on performance | |
Responsible, trustworthy and law-abiding in all that we do. |
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SME Banking
BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped into the true suburb entrepreneurial initiatives.
Today, with over 14,500 crorers of loans disbursed till date, BRAC Bank is country’s largest SME financier that has made more than 320,000 dreams come true!
If you have a dream on which you trust, let us make it true together.
What is ANONNO SME Loan?
ANONNO is a business loan to meet any kind of business needs, which starts from BDT 3 Lac to10 Lac.
No security required | |
Overdraft facility | |
Easy installment | |
Easy loan processing. |
Eligibility
Any kind of business having valid trade license, which has been operating at least 2 or more years. | |
Sole proprietorship, Partnership or Private Limited company | |
Small & mid-sized businesses (Production, Trading, Service, Agro based products and others) |
What is APURBO SME Loan?
APURBO is a loan facility for Small & Medium Entrepreneurs. To meet any kinds of business needs, APURBO is offering BDT 1 million to BDT 5 million loans against registered mortgages.
Specialty of this loan
Term loan and overdraft based on your business needs.
Limited documents | |
10 to 50 Lac Loan | |
Easy installment and overdraft facility |
Eligibility
Any kind of business having valid trade license, which has been operating at least 3 or more years. | |
Those who have property/land/building |
What is PROTHOMA SME Loan?
Prothoma is a term loan for small scaled business operated by women entrepreneur, Maximum BDT 1 million is offered to meet business needs.
No security required | |
As low as 10% interest rate | |
Tenure from 1 to 4 years | |
Easy loan processing |
Eligibility
Any kind of business having valid trade license, which is at least 2 years of old. |
Sole proprietorship, Partnership or Private Limited Company Small & mid-sized business (Production, Trading, Service and others)
What is DURJOY SME Loan?
To meet your business needs DURJOY is offering BDT 3 Lac to BDT 2.5 million Loan without any security.
Specialty of this loan
Up to BDT 25 Lac loan in the name of business | |
Easy installment up to 5 years | |
Convenient interest rate | |
Overdraft facility |
Eligibility
Any kind of business having valid trade license, which has been operating for at least 3 years. | |
Sole proprietorship, Partnership or Private Limited Company | |
1 year bank statement |
What is SHOMRIDDHI SME Loan?
To meet import-export related expenses, post import expenses, tax/duty payment, local bill purchase and working capital, SHOMRIDDHI loan is offering BDT 1 Lac to BDT 10 million.
LC and LATR facility | |
Revolving loan, overdraft | |
Local bill discounting facility |
Letter of Credit (LC)/Loan against trust receipt (LATR)
LC opening facility: from BDT 1 Lac to BDT 10 million | |
Up to 90% loan against LC |
Revolving Loan
Import duty payment or goods purchase facility | |
Loan up to BDT 10 million |
Local Bill Purchase
Loan up to BDT 10 million in export |
Specialty of this loan
Easy loan processing | |
Convenient interest rate | |
Loan payment facility up to 180 days. |
Eligibility
Any kinds of businesses having valid trade license and which has been operating for at least 3 years. | |
Sole proprietorship, Partnership or Private Limited Company. |
What is SHOMPOD SME Loan?
SHOMPOD is a loan facility starting from BDT1 million to BDT 35 million against home or business premise mortgage.
Specialty of this loan
With overdraft facility which will help you to meet your working capital need.
Loan against home or business premise mortgage to meet business needs. | |
Loan is also available to purchase business premise | |
Up to BDT 35 million loan facility | |
Installment facility up to 10 years | |
Convenient interest rate |
Eligibility
Small & mid-sized of business having valid trade license, which has been operating for at least 3 years in Dhaka & Chittagong. |
What is SHOKTI SME Loan?
Business loan under which you can avail BDT 1 million to BDT 7 million to meet your any kind of business needs.
Loan against partial security or fixed deposit | |
At least 1 year bank statement |
PRACHURJO SME LOAN
“Prachurjo” is a lucrative fixed deposit for small and medium businesses. With a minimum 1,00,000 TK, any business enterprise having valid trade license can open this account.
Specialties
Tenure: Minimum 3 months and maximum 36 months | |
No fees except govt excise / duty on interest earned, | |
Interest is applicable on maturity | |
No pre-encashment fees |
Who are eligible for this deposit?
Everyone involving in sole proprietorship, partnership and private limited companies | |
Small and medium typed businesses (Educational institution, NGO and Co-operative society and others) |
Accounting Talks
v Till date, BRAC Bank has served 3,20,000 entrepreneurs, with SME loans valued at BDT 144,330 million through its 424 SME Unit Offices.
v A concerted effort from the largest business division of the country has ensured balance sheet growth alongside economy.
v BDT 37,400 million asset disbursement was supplemented by BDT 8,970 million deposits. Fit-for-purpose strategies and strong drives towards both asset and liability made these successes possible. The year came to an end with a net positive growth in both asset and liability. 10% asset growth has been made by our own liability.
v SME banking division has strengthened its foothold in Bangladesh more than ever before. As the core business of BRAC Bank Limited, SME Banking refined its widespread network by bringing all the unit offices under the Bank’s server network, thereby enabling faster communication with the Head Office.
v The Medium Business unit was launched with a dedicated team for mid-tier customer.
Dutch-Bangla Bank Limited
Company Profile
Historical Background
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 in Bangladesh 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 (4th 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) a public company limited 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 cosponsor 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.
An over view of DBBL
Dutch-Bangla Bank is a second generation commercial private Bank. During the period of its
operation, this bank creates a milestone of success in banking sector. This bank holds an experienced team of banking professional. They achieve this success because of their experienced banking professional team, proper management & so on. Dutch-Bangla Bank Limited is a Bangladesh–Netherlands joint venture scheduled commercial bank established in Bangladesh with the primary objective to carry on all kinds of banking business in and outside of Bangladesh. Starting with one Branch in 1996, DBBL has expanded to thirty nine (39) branches including nine Branches outside of the capital. To provide client services all over Bangladesh it has established a wide correspondent banking relationship with a number of local banks. To facilitate international trade transactions, it has arranged correspondent relationship with large number of international banks which are active across the globe.
In addition to its banking activities, Dutch-Bangla Bank Limited takes part in different national
activities promoting sports, culture, social awareness, etc. Participation in these activities as
sponsors is part of its business development policy.
Philosophy of DBBL
The objectives of Dutch-Bangla Bank Limited remains to offer modern & innovative products &
services to its clients in Bangladesh the partnership with FMO is optimistically scene to offer
scopes opportunities to draw on modern tools & techniques of Banking from western world which could be blended with the currently prevalent local customs & practice. The Bank is committed to being a sophisticated prominent and professional institution, providing a one window service to its customers. During the first five years Dutch Bangla Bank’s strategy was focused on continuing in provident of internal procedures and operating structures, to have a greater control on the quality of our business and to provide better management direction. After five years of working on the Banks structure, its culture and controls, the management is confident that the Bank can move forward on a rapid growth path. The DBBL’s corporate philosophy is to build its nonfunded fees and commission income stream, thus reducing its reliance on interest income alone.
Core objective of DBBL
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 marquees “Your Trusted Partner”
Focus of DBBL
DBBL’s focus is to provide one counter service to our clients covering:
Commercial Banking (Deposit Accounts)
Consumer Banking (Retail Baking)-
Mission
Each business unit needs to define its specific mission within the broader company mission.
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. “Profits alone” do not hold a central focus in the Bank’s
operation; because “man does not live by bread and butter alone”. Mission statements are at their
best when they are guided by a vision.
Vision
“To become a leading banking institution and play a pivotal role in the development of the
country”
Vision, a compelling view of a future yet to be, creates meaning and purpose which catapults both individuals and organizations to high levels of achievement. 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 charmed life that abounds with spirit of life and
adventures that contributes towards human development.
Strategies of DBBL
The strategies are as follows:
Objectives of DBBL
Departments of DBBL
Human Resources Department
Success of any organization largely depends on the efficiency & competence of its manpower.
The organization provides a comprehensive range of human resources services to staff and managers and all prospective employees. A full list of staff and their relevant areas of responsibility are conduct here. This includes Senior Management, Operations group – including
HR Advisors, Staff Development, and Job Evaluation & Systems & Management Information
group.
Our vision is to be a department that leads on and delivers the University’s Staff Experience
Strategy, works as a business partner within the organization and leads by example in relation to
university values.
Services provided under this department:
We provide the following range of services:-
Equality and Diversity
The organization is committed to the support and implementation of the equality and diversity
agenda as laid out in our policy.
‘
International Division
Internal trade means foreign currency and includes all deposits, credit and balances payable
in foreign currency as well as all foreign currency instruments, such as, Drafts, Travelers Cheques, Bills of Exchange, and Promissory Notes payable in any foreign country. Anything that conveys a right to wealth in another country is Foreign Exchange.
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.
Credit department
Risk is an integral part of business & the main role of our risk management principle is to find the optimal balance of risk & return. Bangladesh bank has undertaken a project to install a core risk management system in every bank. DBBL Bank Ltd installing the same system in respect to Asset liability management, Foreign exchange management, internal control & compliance, Anti money laundering. The bank prudently controls asset allocation through limiting exposure to industry sector & setting client limit. Moreover, the bank approved a new organization structure to accommodate core risk management perspective.
IT department
Dutch-Bangla Bank Limited (DBBL) undertook a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies. DBBL and BASIS organized IT award-giving ceremony in this regard. The award Ceremony was held on 30th November 2005, which was the day before last day of BASIS SOFfEXP02005 (November 27-December 01, 2005). This was a gala evening (with dinner and cultural program) attended by around 700 dignitaries including government high officials & policy makers, corporate heads, representatives from development agencies, IT policy makers, academicians and the IT industry members. In this regards, DBBL’s contribution in supporting this event was 50% of the estimated cost with Tk.6.25 Lac.
PRODUCTS AND SERVICES
Banking Products
Various deposits:
Loan & Advances
ATM Services
We can find DBBL ATMs beside our home, in our office premise, nearby market, university,
college & school premises, Airport, Railway stations etc., throughout the country. Using any of
the DBBL ATM pools any where in the country, you can perform the following:
All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL-Maestro/Cirrus Debit card and DBBL Credit card
Treasury
DBBL is well equipped for treasury operation through subscribing Reuters’s terminal and operating in SWIFT network. It is also well equipped with competent human resources for efficient dealing.
DBBL’s treasury quotes competitive exchange rate for major currencies:
Account Service
DBBL provides all the accounts services as prescribed by the guidelines of Central Bank (Bangladesh Bank). DBBL offers competitive interest rate and provides premium quality services for the accounts. Account services are:
Foreign Trade
DBBL extends finance to the importers in the form of:
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
1. Pre-Shipment Finance
Pre-Shipment finance in the form of:
I) Opening of Back-to-Back L/C
II) Export Cash Credit
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:
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 world wide 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.
Using any of the DBBL ATM pools any where in the country, you can perform the following:
EXIM Bank
Company Profile
History of EXIM Bank
Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated business tycon in the Garments business in Bangladesh became the Honorable Chairman after the demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging views on problems being faced by the banking sector of Bangladesh and for formulating common policy guidelines in addressing such problems.
This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.
In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kazi served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centers where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATMs and SMS banking.
In 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long experience in the Shariah Based Islami banking in Bangladesh, EXIM Bank is going to take a new shape where IT-enable banking service will spread in the market.
Our Vision
The gist of our vision is ‘Together Towards Tomorrow’. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in Exim Bank, we believe, the line of excellence is never ending. Bank’s strategic plans and networking will strengthen is competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve our operational success.
Our Mission
The Bank’s mission gives emphasis to:
Corporate Culture
During the last two decades Corporate Culture has become an important theme in business as an intangible concept which clearly plays a meaningful role in corporations, affecting employees and organizational operations. It is not the only determinant of business success or failure, a positive culture can be a significant competitive advantage over organizations with which a firm competes. We, as an amenable bank, believe if the employees identify with the culture, the work environment tends to be more enjoyable, which boosts morale and leads to increased levels of teamwork, sharing of information, and openness to new ideas.
Products & Services
– Deposits
– Investments
– Cards
– Internet Banking
– SMS Banking
– Locker Services
– Investments
– Foreign Exchange & Trade Finance
– Correspondent Banking
– Import Finance
– Export Finance
– EXIM Uddyog
– EXIM Abalamban
– EXIM Kishan
Foreign Remittance
– Exim Exchange Company (UK) Ltd.
– Exim Exchange Company (Canada) Ltd.
– SWIFT
– International Operation
SME Banking
EXIM Uddyog
EXIM UDDYOG is an investment scheme facilitating project aimed to provide fixed and working capital in the field of small & medium level poultry, dairy, fisheries, and agro-based industries etc spread all over Bangladesh through our branches & SME Service Center. The product offers terminating investment facilities for the purpose of working capital finance and/or fixed assets purchase. The investment risk of the product is to cover by a strict evaluation and assessment of customer’s credit history and track record with any bank/financial institution in Bangladesh.
Features of investment
Rules of investment
Rate of Profit / Rent
– Risk fund
– Supervision/management fees [to be fixed by the bank time to time]
Equity investment ratio
Mode of investment
Source of investment
Security
For small entrepreneur: if the project is situated on own land, mortgage of the land and if applicable personal guarantee of (with net worth statement) 02 (two) local persons (acceptable to bank). If the project is situated on rented or leased property, security may be asked for on the basis of nature/status of the investment proposal.
For medium entrepreneur, satisfactory security should be provided to cover the investment.
Criteria/factors for selection of investment customer
EXIM Abalamban
EXIM ABALAMBAN is an investment scheme facilitating project aimed to provide fixed and working capital in the field of small & medium level General business and Workshop & light engineering etc spread all over Bangladesh through our branches & SME Service Center. The product offers terminating investment facilities for the purpose of working capital finance and/or fixed assets purchase. The investment risk of the product is to cover by a strict evaluation and assessment of customer’s credit history and track record with any bank/financial institution in Bangladesh.
Feature of investment
Rules of investment
Limit of investment
Rate of Profit / Rent
– Risk fund to be fixed by the bank time to time
– Supervision/ management fees
Equity investment ratio
Mode of investment
Source of investment
Security
Criteria/ factors for selection of investment customer
Standard Chartered
Company Profile
History
Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa.
The Chartered Bank
Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.
Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.
Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama.
Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871.
In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus Branches. This established a presence in the Gulf.
The Standard Bank
Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, in January 1863.
Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.
Expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices.
In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.
From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services – areas in which the Group had particular strength and expertise.
Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extended the customer and geographic reach and broadened the product range that Standard Chartered offers.
Our business
Standard Chartered PLC, listed on the London, Hong Kong and Mumbai stock exchanges, ranks among the top 20 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last few years primarily as a result of organic growth, supplemented by acquisitions.
Consumer Banking
Consumer Banking offers a broad range of products and services to meet the borrowing, wealth management and transaction needs of individuals.
Wholesale Banking
Wholesale Banking has a client-focused strategy, providing trade finance, cash management, securities services, foreign exchange and risk management, capital raising and corporate finance solutions.
SME Banking
Our SME Banking division offers products and services to help small and medium enterprises manage the demands of a growing business, including the support of our international network and trade expertise.
Islamic Banking
Standard Chartered Saadiq’s dedicated team provides comprehensive international banking services and a wide range of Shariah-compliant financial products based on Islamic values.
Standard Chartered Private Bank
Our Private Bank advisors and investment specialists provide customised solutions to meet the unique needs and aspirations of high net worth clients.
SME Banking
The constant economic growth in Bangladesh means ample opportunities for you to grow your dream business. However, countless obstacles, intense business environment and steep competition require you to have the very best banking partner. This is where Standard Chartered Bank’s SME Banking comes into play with its wide range of business responsive products, services and superior customer service.
We make available:
v Business Installment Loan
Do not let fund shortage hold back your business expansion. Fight back all fund related constrains with Standard Chartered Bank’s Business Installment Loan. Inject up to BDT 7 Million to truly make your business fly!
Features
This loan will help you meet your financial needs for your business expansion. You can make long term investments with this business loan and build up your equity by repaying the loan in convenient equated monthly installments (EMI). You can avail this loan through some simple documentation and against competitive cash securities.
Please note that the above requirements are not exhaustive and the bank may require further documentation for credit assessment on a case to case basis.
Charges
In Bangladesh the number of women-owned company continues to grow, and Standard Chartered Bank is dedicated in helping the women entrepreneurs to grow their business by offering competitive Business Loans specially designed for women.
Standard Chartered’s Orjon provides the liquidity you need to grow your business or meet your cash flow requirements. The loan enables you to obtain financing without any requirement of land or property collateral.
‘Orjon’ has been crafted to perfection to support the business needs of women entrepreneurs. The following features depict the very reasons as to why ‘Orjon’ can be instrumental in your business success:
At Standard Chartered we strive to meet your needs in a competitive and dynamic business environment. We understand that, as an SME, you require quick access to cash, and the flexibility to leverage your assets to fuel your business growth.
Standard Chartered’s Loan Against Property provides the liquidity you need to grow your business or meet cash flow requirements. The loan enables you to leverage your property to obtain financing.
Loan against property is very flexible and is designed to meet the different financial needs of your business. Want to expand your business leveraging on your existing property? With Loan Against Property you can undertake long term investments for expansion. In the process Loan Against Property also enables you to build up business equity by repaying the loan in monthly installments.
Following table indicates the monthly repayment amount or the equal monthly installments (EMI) is given below:
To be eligible to apply for this loan, the applicant must fulfill the following criteria:
a) Mutation Letter from RAJUK/ CDA
b) Mutation Letter from National Housing Authority (NHA)
c) Mutation Letter from Ministry of Works
Please note that the above requirements are not exhaustive and the bank may require further documentation for credit assessment on a case to case basis.
Please note both valuation and legal fees are non-refundable and inclusive of processing fee of 1.5%+VAT of the loan. Both fees will be discounted from the said processing fee at the time of loan disbursement if the loan is approved by the bank, the facility is availed by the customer and the property(s) are mortgaged in favor of the Bank.
Here at Standard Chartered Bank your needs and our offers go hand in hand. If your business requires various combinations of banking facilities then our Trade and Working Capital Financing is here to provide you the perfect blend.
The lists of benefits that Standard Chartered Bank offers to face your needs are:
The beneficial features of Standard Chartered’s Trade and Working Capital are:
To avail these benefits a business must fulfill the following criteria:
As you deserve the best, we offer your Business Priority Account through which you will enjoy the privileges of personalized and superior account services for your business.
By maintaining a minimum half-yearly average balance of BDT 1,000,000, any of the following type of business entities & individuals can benefit from Business Priority Account
The Business Premium Account has been designed to create a relevant and exclusive package that will make your business thrive. By becoming a Business Premium Accountholder, you can enjoy the following distinctive services:
By maintaining a minimum half-yearly average balance of BDT 500,000, any of the following type of business entities & individuals can benefit from Business Premium Account
Standard Chartered has put together the custom-made Business Plus Account especially designed to support the ambitious growth of SMEs such as yourself. By becoming a Business Plus Accountholder, you can enjoy the following distinctive services:
By maintaining a minimum monthly average balance of BDT 250,000/-, any of the following business entities can benefit from Business Plus Account
Efficiency and responsiveness are two of the driving force of any business. Beholding these two fundamentals Standard Chartered Bank offers the Straight 2 Bank service to all SME customers. Banking was never as easy as Straight 2 Bank.
Straight2Bank is positioned to become the key channel for all SME Banking clients by providing enhanced product offering, greater geographic reach, time efficiency, improved operational support model, and comprehensive secured platform.
Straight 2 Bank is an online service through which you can view your bank statements and make certain crucial transactions like fund transfer, DD instruction etc. You can also view your daily transactions, which is updated every half an hour! Enjoy the true essence of real-time banking. Enjoy banking with Standard Chartered anytime, anywhere!
In today’s competitive business environment time is money, and money saved is money earned. With this idea the SME Banking team brings you Doorstep Banking, a customizable service that allows you to securely conduct banking transactions without leaving your doorstep, which in turn saves your precious time.
Doorstep Banking is a cash/cheque pickup and delivery service from different cash collection and payment points of your business. This service saves your regular commuting time to our branches for cash transactions. It is also very safe as the transportations of the cash/cheques will be done using bullet proof armored vehicles, which will be present at your preferred pickup/delivery points at a very affordable price.
To bring out the best option for your business’ deposits, Standard Chartered Bank offers its SME Transaction Services. We have formulated a matrix of tiers with respective features that are bound to show up with the most beneficial transactions.
Standard Chartered Bank offers three types of accounts. These are SME Business Prioriy Account, SME Call Account and Business account. Each of these account types are subdivided into Business Plus, Business premium and Business Priority segments.
Findings
SME service in our country became more attractive to all kind of business owners. All kind of banks are already started providing the SME services to the small and medium business owners. They are creating new facilities to make it more helpful for the business owners. They are trying to help poor people and family by providing this service to the women. The government of Bangladesh also paying attention in this service, so the small and medium business owners can get more benefits from the banks and others who provide this service to them.
Recommendations
1. Seed Money, Leasing, Venture Capital and Investment Funding:
There is a need for improving different aspects of financial services of SMEs, such as seed money, leasing, venture capital and investment funding. There is a lack of long-term loans; interest rates are high, Guarantee/Security issues, exchange risks etc. All these limit the development of SMEs. Finance, both short and long term, should be provided at market cost of capital. Fund should be made available through encouragement for setting up ‘Venture Capital’ organization in Bangladesh. The concept of venture capital (VC) has successfully Operating in the USA, EU countries, and Canada.
2. Establishment of Small Business Investment and Lending Corporation (SBILC):
We should start with ‘something effective’ for industrial development in general and the SMEs sector in particular. Such a step, for example, could be the establishment of a separate corporate body. That means a separate financing institution could be developed, with joint ownership of the public and private sector. To make the proposed initiative effective in achieving its goals, government may set up a Small Business Investment and Lending Corporation (SBILC).
The SBILC can be formed under Small Business Investment and Lending Act passed through the Parliament. Under SBILC there may have external and Internal Financing policies. Taken from the different countries experiences the different types of financing policies and program that can be introduced through SBILC, is enumerated below:
3. Periodical Professional Training Courses for SMEs & for Entrepreneurship Development:
Periodical professional training courses should be arranged for technical staff of SMEs. Moreover training in management of small enterprises and efficient marketing can also provide. Islamic Chamber regularly organizes training workshops on management, marketing, procurement of technologies, quality control system and financing of SMEs, for the benefit of representatives of private enterprises and staff of member chambers indifferent regions of the Islamic World. Training programme / workshop should be organized for the development of SMEs capabilities to acquire enhanced knowledge and skills about how to choose, use and improve technology. At present, no such institution exists except a project of the BSCIC called ‘SCITI (Small and Cottage Industries Training Institute). Training on different aspects of SMEs activities for entrepreneurs is crucial for the development of an entrepreneurial.
4. Establishment of R&D Institute for Enterprise and Entrepreneurship Development, Training and Research Institute:
In a country like Bangladesh, where entrepreneurial initiative is rare and shy, a separate institute for enterprise and entrepreneurship development, training and research should be developed. To make it a ‘center of excellence’ in SMEs development, it should be designed, involving educational institutions, business associations, relevant government bodies, private research agencies, and individual consultants having experience in SMEs development.
5. Establishment of a separate bank for women entrepreneurs:
Establishment of a separate bank for women entrepreneurs will accelerate the development of women SME through their increased access to formal financial institutions.
6. Minimum quota for women entrepreneurs:
Maintaining a minimum quota for loan disbursement to women entrepreneurs and proactively seek out female clients.
7. Training program for women entrepreneurs:
Increase the capacity of women entrepreneurs through training and awareness raising activities on financial management, business procedures and other regulatory process such as trade license, tax and VAT, etc. At the same time, initiatives should be undertaken to sensitize the people working with respective regulatory institutions so that women SME can easily arrange necessary documents for loan application and other procedures.
8. Implementation and Monitoring of Policy Measures for SMEs:
Only policy prescription is not the end, if it is not implemented through different measures timely and properly. How far policy measures are implemented, along with, what effect – desired or not – such policy measures has had on the development of SMEs should also be monitored from time to time. This monitoring will provide feedback for taking corrective actions, if necessary, to ensure desired effect of the policy adopted.
Conclusions
As the experiences of SME finance in Bangladesh suggest, there is critical need for putting in place a credit delivery system that evaluates the credit worthiness of borrowers, on a basis other than fixed asset ownership. The evaluation may require examining transaction records of the borrowers, assessing the value of movable assets etc. There will also be the need for enhanced post disbursement monitoring. An effective SME finance policy will have to cover such enhanced cost of credit administration. In addition to credit guarantee or refinancing facility there will have to be adequate rediscount facility for the primary lender to accommodate these costs. The financing scheme should also include special provisions for women entrepreneurs. Indeed, the Implementation of appropriate policies and strategies is a prerequisite to harness sustainable competitiveness of SMEs around the country. Suggestive remarks have been stipulated in this write up. With that paradigm, proactive policy is essential to enact them. The first step this regard is to make firm’s filly aware of the competitive challenges they have to face. The next step is to help SMEs prepare to meet the challenge by understanding their strengths and weaknesses and providing the inputs they need to help them upgrade. The main inputs are finance, market information, training, infrastructure development, R&D, management tools, technology, skills and links with institutions for support services. SMEs are considered to be the seedbed for the development of entrepreneurial skills and innovation. Small capital requirement makes easy entry and exit possible and private sector entrepreneurial activities have many important spillover and positive externality effects. However, liberalization of the economy along with rapid globalization has posed severe challenges to SMEs not only in international markets but also in the domestic economy. Since SMEs are based on relatively small investment, their survival depends on readily available markets with easy access. In today’s world, market development is a much more challenging task, which requires coordinated efforts by individual business enterprises and the Government. Bangladesh has failed to maximize the benefits derived from the SME sector, which promises and needs to play a pivotal role in promoting and sustaining the industrial as well as overall economic growth. The failure can be attributed to various reforms and trade liberalization measures that have squeezed the sphere of Government’s activity in business. Consequently, the private sector has to lead the economy in a dynamic growth path. The role of SMEs in providing productive employment and earning opportunities has emerged as an important concern among policy makers, donor agencies and researchers. Regardless of the correct magnitude, SMEs undoubtedly play a very important role in the economy of Bangladesh in terms of output, employment, and private sector activities. They are quite predominant in the industrial structure of Bangladesh comprising over 90% of all industrial units. Together, the various categories of SMEs are reported to contribute between 80-85% of industrial employment and 23% of total civilian employment (SEDF, 2003). However, serious controversies surround their relative contribution to Bangladesh’s industrial output due to paucity of reliable information and different methods used to estimate the magnitude. The most commonly quoted figure by different sources (ADB, World Bank, Planning Commission and BIDS) relating to value-added contributions of the SMEs is seen to vary between 45-50% of the total manufacturing value added.
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