Project Report On Performance Appraisal of BRAC Bank Limited part 3

3.13. Achievements of BRAC Bank

  • BRAC Bank gets ICMAB National Best Corporate Award 2007

Wednesday, December 19, 2007 – BRAC Bank Limited, the fastest growing bank in Bangladesh has recently received ICMAB National Best Corporate Award 2007 for the criteria of its Capital Adequacy, Asset Quality, Profitability, Liquidity, Corporate Governance, Market Share, Contribution to National Economy, Risk Management, Regulatory Compliance, Disclosure, CSR in the category of “Financial Institutions”. This is the first such award in Bangladesh, which recognizes various local corporate for their efficiencies. BRAC Bank has been rated as one of the 3 best private sector banks in Bangladesh by The Institute of Cost and Management Accountants of Bangladesh (ICMAB).

  • Fastest growing bank in the country for the last two years
  • Leader in SME financing through 350 offices
  • Biggest suit of personal banking & SME products

3.14. Board of Directors

Name Designation
1.  Mr. Fazle Hasan Abed Chairman
2.  Mr. Syed Humayun Kabir Director
3.  Mr. Md. Aminul Alam Director
4.  Mr. Quazi Md. Shariful Ala Director (Nominated by BRAC)
5. Mr. Muhammad A. (Rumee) Ali
6.  Ms. Nihad Kabir Director (Independent Director)
7.  Mr. Mark A. Coffey Director (Nominated by Shore Cap)
8.  Mr. Kaiser Tamiz Amin Acting Managing Director & CEO

3.15. Shareholding Position

Sl.No Name No. of Shares Amount (Taka) % of Share
1. BRAC 3,808,680 380,868,000 31.74
2. Mr. Fazle Hasan Abed 120 12,000 0.001
3. Mr. Syed Humayun Kabir 120 12,000 0.001
4. Mr. A. S. Mahmud 120 12,000 0.001
5. Mr. Faruq A. Chowdhury 120 12,000 0.001
6. Mr. Dr. Salehuddin Ahmed 120 12,000 0.001
7. Mr. Md. Aminul Alam 120 12,000 0.001
8. Shore Cap International Ltd. 1,050,840 105,084,000 8.75
9. International Finance Corporation 1,139,760 113,976,000 9.50
10. Mutual Fund 289,980 28,998,000 2.42
11. Non-resident Bangladeshi 56,885 5,688,500 0.47
12. Institutions & General Public 5,653,135 565,313,500 47.11
Grand Total 12,000,000 1,200,000,000 100.00

3.16. Organizational Structure

Management Hierarchy

3.17. Different Departments of BRAC Bank Ltd.

  1. Human Resources Department
  2. Financial Administration Department
  3. Asset Operations Department
  4. Credit Division
  5. SME Division
  6. Internal Control & Compliance Department
  7. Marketing & Product Development
  8. Impaired Asset Management
  9. Remittance Operation Department
  10. Treasury Front
  11. Treasury Back
  12. General Infrastructure Service
  13. Information Technology Department
  14. Customer Service Delivery
  15. Cards Division
  16. Call Center
  17. Cash Management
  18. Secured Remittance department
  19. Women Entrepreneur Cell
  20. Payment Service

3.18. Business Divisions of BRAC Bank Ltd

It has four major business divisions:

  1. Corporate Banking Division
  2. Retail Banking Division
  3. Small & Medium Enterprise Division
  4. Foreign Trade and Treasury Division

3.19. Corporate Social responsibility

BRAC Bank is a socially responsible organization with an obligation to consider the interest of customers, employees, shareholders, communities and ecological considerations in all aspects of its operations. This obligation is seen to extend beyond its statutory obligation to comply with legislation. In line with vision of BRAC Bank, corporate social responsibility is closely linked with the principles of sustainable development, which argues that it should make decisions based not only on financial factors such as profit or dividends, but also based on the immediate and ling-term social and environmental consequences of its activities.

As a part of its corporate social responsibility BRAC Bank donated $38,252 to ICDDRB for the renovation of a temporary shed that was thronged with diarrhea patients soon after the recession of flood water of last year. A Co-Branded Credit Card was also introduced to maintain an ongoing support for ICDDRB.

BRAC Bank employees have made a contribution of TK. 1.35 million, equivalent to their one-day’s salary to BRAC for its country wide flood relief and rehabilitation activities in August 2007.

BRAC Bank has sponsored the 2nd National Women Entrepreneur Conference 2008, where women entrepreneurs from all over Bangladesh have participated to attend in the workshops and knowledge sharing activities undertaken by SME Foundation of Bangladesh.

To assist Bangla Academy with their publication and research and development initiatives BRAC Bank has lend their support to carry forward their projects. Also BRAC Bank has supported in stall preparation and beautification of “Amor Ekushey Boi Mela 2008”, this initiative was taken to make the fair enjoyable for participants as well as the visitors.

Six new immigration counters of Zia International Airport is established for outgoing passengers by BRAC Bank with proper branding and computer assistance to mitigate the time constraint and pressure of increasing number of passengers. A Probashi information counter is created for the wage earners who can gather information about sending foreign remittance to Bangladesh.

To conserve nature and alleviate the illegal slay of immigrant birds, BRAC Bank has sponsored “Pakhi Mela 2008: organized by Jahangirnagar University.

BRAC Bank too an initiative to stand by the SIDR affected people of Barishal and Khulna with relief. A number of employees distributed dry food, water, clothes, medicine etc. among SME borrowers.

A donation of TK. 1 million was made to an art exhibition of “Shako” a 12 artist organization. The total money collected by selling the paintings was donated to ‘Apon Drug Rehabilitation Center’.

To encourage and create awareness of SME development of Bangladeshi BRAC Bank has sponsored AMDIB Forum organized by Institute of Business Administration (IBA), this forum has helped the participants to share views, get key insights and discussed about the ways to alleviate problems faced by SME entrepreneurs, while seeking financial support.

BRAC Bank has also supported annual fund raising program of SAARC women’s Association Dhaka to Support and assist Islamia Eye Hospital and Dhaka Shishu Hospital for operation and treatment.

To support the humanitarian endeavors of Rotary International like, polio plus program, cancer detection unit, drug abuse and HIV/AIDS advocacy, BRAC Bank has sponsored a conference organized by Rotary International.

As a part of its corporate policy BRAC Bank Does not provide any financial support to any environmentally hazardous of child labor exploited company.

3.20. Credit Policy of BBL

In order to minimize credit risk, BBL has formulated a comprehensive credit policy according to Bangladesh Bank Core Risk Management guidelines. Credit policy of the Bank provided for the separation of the credit approval function from business/marketing and loan administration function. . Credit policy of BBL recommended through credit assessment and risk grading of all clients at the time of approval and portfolio review. Credit policy also provides the guidelines of required information for credit assessment, marketing strategy, approval process, loan monitoring, early alert process, credit recovery, NPL account monitoring, NPL provisioning and write off policy, etc. The board of directors reviews the credit policy of the bank annually.

The following diagram illustrates the existing credit approval process:

Chapter 4: Divisions and Services of BRAC Bank Limited

4.1. Corporate Banking Division

Being a major business unit of the bank, corporate banking division has been playing a significant role to achieve the overall objective of the bank. Since the starting, the division is continuously striving to provide more customer focused products for its valued clients. In this process, the division has segmented itself into various units which cater the associated customer segment. The year 2007 will be marked as a milestone for the corporate banking division as it has finance several large projects in this year. Corporate banking helps its customers to fulfill their objectives by carefully listening and analyzing their ideas, providing necessary expertise and composite products. The business unit operates through the following five major wings:

  • Structured Finance
  • Local Corporate Unit
  • Medium Enterprise Unit
  • Cash Management and Corporate Liabilities

4.1.1. Corporate Banking Services

4.1.1.1. Corporate Loan Products

Overdraft

Term Loan

Lease Finance

Loan against Trust Receipt (LATR)

Work Order Finance

Medium Enterprise

4.1.1.2. Trade Finance

Letter of Credit (LC)/ Letter of Guarantee (LG)

4.1.1.3. Corporate Cash Management

NCS

PTS

Advantages to Employers

Advantages to Employees

Cash Management Services

4.2. Retail Banking Division

Retail Banking Unit ha further strengthened its position as a major channel of business by stretching its horizon with its unique offer of personal banking across the country. This unit takes foremost funding responsibility of the bank and is committed to offer multifarious services to entire customer base of the bank through branches, alternative delivery channels, premier banking services, and literally taking retail banking products to doorsteps through direct sales force.

A phenomenal growth in terms of new customers was registered by retail team and graphical comparison of three years is given below:

4.2.1. Retail Banking Services

The retail, corporate, and foreign division of BRAC Bank Ltd. Offers different types of services to its values customers which are discussed below:

4.2.1.1. Depository Services

BRAC Bank offers many types of deposit products to its customers which are as follows:

Fixed Deposit

Opening Requirements

  • A Current Account or Savings Account

General Features

  • A term deposit with a guaranteed monthly return on investment
  • Competitive interest rates
  • Early encashment flexibility
  • Secured Loan and/or Secured Overdraft eligibility

Interest First Fixed Deposit

Here depositors don’t have to wait till maturity to receive interest on fixed Deposit. BRAC Bank Interest First Fixed Deposit lets the depositor draw the interest instantly at the time of deposit. This is a deposit scheme where the client receives interest in advance.

Features

  • Instant interest on fixed Deposit
  • Interest reinvestment opportunity
  • Attractive rate of return
  • Loan facility against the IFFD

Abiram Account

BRAC Bank ‘Abiram’ Account is a special type of Fixed Deposit scheme, which offers the flexibility & comfort of having a guaranteed monthly return on investment.

Features

  • Monthly interest on deposit
  • Attractive rate of return
  • 95% loan against deposit

EZee Account

In EZee Account BRAC Bank offers a non-cheque interest bearing account for small savers who are in frequent need of transaction. Depositors get an ATM card to operate account round the clock.

Features

  • 24 hour access to ATMs and POS
  • Interest on daily balance
  • No minimum balance
  • No ledger fees

DPS

BRAC Bank’s Deposit Premium Scheme (DPS) is a savings plan that adds value to hard earned money.

Features

  • Monthly installments can be as low as Tk. 500 or any multiples of it
  • Choose any day as installment date
  • Receive a Savings a/c with a personalized cheque book
  • On-line banking facilities
Monthly Installment
Amount (BDT.)		 Maturity amount after completion of all regular
installments payment*
4 Years 7 Years 11 Years 14 Years
500.00 28,667.00 58,650.00 116,603.00 179,550.00
1000.00 57,334.00 117,300.00 233,207.00 359,101.00

Savings Account

A regular savings account offers interests on deposit amount.

Features

  • Cash withdrawal and deposit of 5 lac and above need clarification
  • No forfeiture rules or hidden costs
  • No requirement for notices to be given before making a withdrawal
  • Use the network of ATMs for easy cash withdrawal
  • Get mini balance statements from the ATM whenever needed
  • Interest rate of 5.5% on average monthly balance

Short-term Deposit

This is a deposit scheme to give returns on savings.

Features

  • Minimum balance required is Tk. 100,000
  • Interest paid twice a year but calculated monthly if balance is > Tk. 100,000
  • Secured returns.

Current Account

BRAC Bank’s Current Account is a normal checking account, gives the option to deposit and withdraw money for day-to-day needs.

Features

  • ATM card for easy cash withdrawal
  • Withdraw money from all ATMS
  • Deposit cheques at any of the branches and get the fund immediately
  • Use online banking facility for free
  • Easy access to other facilities

Salary Account

BRAC Bank Salary Account is a payroll account for Employers and Employees. As an organization, anyone can opt for the Salary Account to enable easy disbursements of salary & enjoy numerous other benefits.
Eligibility

The organization needs to have a minimum of 10 employees and a payout of Tk. 1 lac per month and an average salary per employee of Tk. 10,000 per month.

Features

  • Zero balance
  • Non-checking account
  • ATM debit card
  • Savings Interest