Post on 17-Feb-2018
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United International University
Internshi !eort
on"General Banking #ctivities & Credit Management of
Dutch-Bangla Bank Limited$%# Study on lehant !oad Branch'
Su(mitted to)
James Bakul Sarkar
Assistant ProfessorSchool of Business
Su(mitted By*
Name : Md. Shahid HossainID : 111-11-!!"
De#artment : BBA in AIS
Date of Su$mission:
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Letter of +ransmittal
No%em$er !& !1"
'oMr. James Bakul SarkarAssistant ProfessorSchool (f Business)nited International )ni%ersit*House + ,!& oad + ,A& Mir/a 0olam Hafi/ oad&Dhanmondi& Dhaka-1!& Ban2ladesh.
Su(,ect* Su(mission of Internshi !eort on "General Banking #ctivities & Credit
Management of Dutch-Bangla Bank Limited$Dear Sir
It is m* 2reat #leasure that I ha%e 2ot the o##ortunit* to su$mit an ela$orate re#ort on
#ractical kno3led2e in $ank as #er the re4uirement of MBA #ro2ram. I ha%e $een assi2ned to
3ork at Dutch-Ban2la Bank 5imited 6le#hant oad Branch from No%em$er !1& !1"& 3here
I ha%e o$ser%ed closel* and studied different #ractical as#ects of the $ankin2 institute. I
3ould like to sa* it has $een a 2reat e7#erience for me to 3ork in the 8oint %enture $ank&
DBB5& 3hich enrich m* #ractical kno3led2e of $ankin2 sector in Ban2ladesh. I ha%e tried
m* le%el $est to #ut meticulous effort for the #re#aration of this re#ort. An* shortcomin2 or
fla3 ma* arise as I am a no%ice in this as#ect.
It 3ould $e #leasure for me if this re#ort can ser%e its #ur#ose and I 3ill $e a%aila$le to
e7#lain an* of *our 4ueries if *ou feel necessar*.
'hank *ou.
Sincerel* *our
----------------------------------
Md. Shahid Hossain
ID: 119-11-!!"
BBA in AIS
School of Business And economics
)nited International )ni%ersit*
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Student.s Declaration
I here$* declare that the re#ort entitled e#ort on the "General Banking Service & Credit
Management of Dutch-Bangla Bank Limited$& 6le#hant oad Branch is su$mitted as the
#artial fulfillment of the de2ree of Bachelor of Business Administration of )nited
International )ni%ersit* of Ban2ladesh.
It is m* ori2inal 3ork and is not su$mitted for the a3ard of an* other de2ree& di#loma& and
fello3shi# and that the 3ork has not $een #u$lished in an* 8ournal or ma2a/ine.
;;;;;;;
Md. Shahid Hossain
ID No.: 119 11 !!"Pro2ram: BBA in AIS
)nited International )ni%ersit*
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Suervisor.s Certification
It is m* #leasure to certif* that Md. Shahid Hossain& ID.119 11 !!"& student of Business
Administration of )nited International )ni%ersit* ?redit
Polic* of Dutch-Ban2la Bank 5imited@& 6le#hant oad Branch@.He has com#leted this 3ork
under m* su#er%ision and #re#ared this re#ort accordin2 to direction and 2uidance.
As far I kno3 he tried his $est to conduct this successfull*. I think this 3ill hel# him in the
future to $uild u# his career.
I 3ish his e%er* success in life.
Mr. James Bakul SarkarAssistant Professor
School (f Business)nited International )ni%ersit*
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Certificate
'his is to certif* that Md. Shahid Hossain& ID No.: 119 11 !!", BBA in AIS& student of
)nited International )ni%ersit*
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+a(le of Content
Chater /ne* Introduction 11-1
1.1 Introduction 111. 'he Internshi# 1
1. (ri2in of the e#ort 1
1.9 ($8ecti%es of the stud* 1
1.9.1 Primar* ($8ecti%e 1
1.9. Secondar* ($8ecti%e 1
1." Methodolo2* (f 'he Stud* 1
1.".1 Primar* Source 19
1.". Secondar* Source 19
1. Sco#e (f 'he Stud* 19
1.E 5imitation of 'he Stud* 191., ?o%era2e of 'he stud* 1
1. ational of 'he Stud* 1
1.1! (r2ani/ational Pers#ecti%e 1
?ha#ter '3o: Back2round of 'he Stud* 1,-
.1 Histor* of Bank 1,
. Bankin2 Histor* (f Ban2ladesh 1,
. ?ondition In Bankin2 Sector In Ban2ladesh 1
.9 'he Histor* of DBB5 1
." Mission of Dutch-Ban2la Bank
. Fision of Dutch-Ban2la Bank
.E Slo2an
., Business Philoso#h*
?ha#ter 'hree: 0eneral Bankin2 Ser%ice of DBB5 "-
.1 A$out 'he D$$l 6le#hant oad Branch "
. 5ocation (f 6le#hant oad Branch "
. 0eneral Bankin2 Acti%ities
..1 Account (#enin2 Section
.. emittances Products 91
. D$$l Ser%ices (ffered 9
.E Atm Net3orkD$$l Ne7us Partici#atin2 Banks 9
., Gast 'rack 9
. 'he ?ards 9
.1! ?or#orate Social es#onsi$ilit* (f D$$l 9E.11 Social 3ork 9,
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.1 Dutch-Ban2la Bank esearch ?enter 9,
?ha#ter Gour: ?redit Mana2ement of Dutch-Ban2la Bank 5td. ,-9!
9.1 Definition of ?redit: "!
9. Gactors elated 3ith ?redit "!9. ?redit flo3 of DBB5 "1
9.9 '*#es of loans and ad%ances offered $* DBB5 "1
9.9.1 ?or#orate ?redit Scheme "1
9.9. etail ?redit Scheme "
9." 5endin2 Policies (f Dutch-Ban2la Bank 5td "
9. 5endin2 Procedure of Dutch-Ban2la Bank 5td "
9.E 0eneral Procedure for 5oans and Ad%ances "
?ha#ter Gi%e: isks Associated Cith ?redit".1 isk
". isks in Bankin2 Business "..1 Business isk
".. Mana2ement risk: E
".. Securit* isk: E
". isk Mana2ement Process E
".9 isk Mana2ement E
"." 5endin2 isk Anal*sis
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0CU+I1 SUMM#!2
'his #a#er has attem#ted to hi2hli2ht on an e%aluation of 0eneral Bankin2 Ser%ices and
?redit Mana2ement of Dutch-Ban2la Bank 5imited in the conte7t of Dutch-Ban2la Bank
5imited& ele#hant road $ranch. Dutch-Ban2la Bank 5imited is amon2 the leadin2 commercial
$anks of the countr*. 'he first #art of the re#ort discusses the 2eneral ser%ices offered in the
$ank and the 3hole #rocess it 2oes throu2h to ser%e its customers in a 3ell-disci#lined
manner. I ha%e 2i%en m* $est effort to include all the necessar* #oints in order to 2i%e a clear
understandin2 a$out the 0eneral Bankin2.
5endin2 is one of the #rinci#al functions of the $ank. Sound lendin2 #ractice therefore& is
%er* im#ortant for #rofita$ilit* and success of a $ank. Gor the sake of sound lendin2& it is
necessar* to de%elo# a sound #olic* and modern credit mana2ement techni4ues to ensure that
loans ad%ances are safe and the mone* 3ill come $ack 3ithin the time set for re#a*ment. Gor
this #ur#ose& #ro#er and #rior anal*sis of credit #ro#osals is re4uired to assess the risk. ?redit
risk 2radin2 is one of the $asics for risk mana2ement and control& as it is the risk factor
inherent in e%er* $ank $usinesses and as the 4ualit* of credit is essential for sound $ankin2
and its re#utation. Gor the effecti%e a##lication of ?0& e7#ertise and 3illin2ness as 3ell as
moti%ation of the $ankers are needed. And to do that stron2 criterion must $e follo3ed assuch in DBB5. 'his re#ort should $e a$le to 2i%e a clear idea a$out ho3 and 3hat ste#s a
$ank has to 2o throu2h in order to sanction a loancredit to a com#an*.
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C3#4+!- /5
I5+!/DUC+I/5
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66 I5+!/DUC+I/5
0enerall* the 3ord Bank@ 3e can easil* understand that the financial institution dealin2
3ith mone*. But there are different t*#es of $anks like ?entral Banks& ?ommercial Banks&
Sa%in2s Banks& In%estment Banks& Industrial Banks& and ?o-o#erati%e Banks etc. But 3hen
3e use the term Bank@ 3ithout an* #refi7& or restriction& it refers to the ?ommercial $anks.
?ommercial $anks are the #rimar* contri$utors to the econom* of a countr*. So 3e can sa*
?ommercial $anks are a #rofit-makin2 institution that collects the de#osits from the sur#lus
unit of the societ* and then lend the de#osits collected to the deficit unit of the societ*. So the
#eo#le of the societ* and the 2o%ernment are %er* much de#endent on the commercial $anks
as the financial intermediar*. As $anks are #rofit-earnin2 concern the* collect de#osit at the
lo3est #ossi$le cost and #ro%ide loans and ad%ances at hi2her. 'he differences $et3een t3o
are the #rofit for them.
6conomic histor* sho3s that de%elo#ment has started e%er*3here 3ith the $ankin2 s*stem
and its contri$ution to3ards financial de%elo#ment of a countr* is the hi2hest in the initial
sta2e. Modern $anks #la* an im#ortant #art in #romotin2 economic de%elo#ment of a
countr*. Bank #ro%ides necessar* funds for e7ecutin2 %arious #ro2rams in the #rocess of
economic de%elo#ment. 'he* collect sa%in2s from lar2e masses of #eo#le scattered
throu2hout the countr*& 3hich in the a$sence of $anks 3ould ha%e remained ideal and
un#roducti%e. 'hese scattered amounts are collected& #ooled to2ether& and made a%aila$le to
commerce and industr* for meetin2 the financial re4uirements.
Bank #la*s a %ital role in the econom* $* #ro%idin2 means of #a*ment and in mo$ili/in2
resources. Bank is the most im#ortant financial institution in the econom*. 'he economic
de%elo#ment of a countr* de#ends on the de%elo#ment of $ankin2 sector. 'oda*s modern
$anks are not onl* #ro%idin2 traditional $ankin2 $ut also e7#andin2 the man* financialser%ices. Bankin2 sector is e7#andin2 its hand in different e%ents e%er* da*. As the demand
for $etter ser%ices increases da* $* da*& the* are comin2 3ith different inno%ati%e ideas and
#roducts.
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Ce the students of Bachelor of Business Administration
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6:6 4rimary /(,ective
'he #rimar* o$8ecti%e of the stud* is to com#lete the #artial re4uirement of the a3ardin2 of
the BBA in AIS de2ree from the school of $usiness > economics& )nited International
)ni%ersit*. 'he o$8ecti%e is to #re#are > su$mit a re#ort on the to#ic of General Banking
Services and Credit Management of Dutch-Bangla Bank Limited . 'he #rimar* #ur#ose
of this re#ort is to 2et an idea a$out the 2eneral $ankin2 #ractices on the $ankin2 sector of
Ban2ladesh.
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ele%ant file stud* as #ro%ided $* the officers concerned.
6=7 Secondary Sources*
Annual re#orts of Different Banks !11& !1&!1&!19&!1". Periodical #u$lications $* DBB5.
Different $ooks& trainin2 #a#ers& manuals& Ne3s#a#ers and Journals.
Ban2ladesh Bank Annual e#ort-!1" and 3e$site of Ban2ladesh Bank.
Article #u$lished $* DBB5.
6< SC/4 /9 +3 S+UD2
#rea of the !eort* the $asic area for the re#ort is anal*/in2 the acti%ities and
#erformance of 2eneral $ankin2 and credit mana2ement o#eration of Dutch-Ban2la
Bank 5imited considerin2 6le#hant oad Branch. In this 3ork the o%erall %ie3 of
the 2eneral $ankin2 s*stem& histor* and Mechanism& #olicies and a##raisal of Dutch-
Ban2la Bank 5imited and other acti%ities are e7tensi%el* anal*/ed and the findin2 s
are clarified alon2 3ith de#th stud*.
+ime and Duration* 'he time of m* internshi# has started from No%em$er !1& !1"
and I 3as a##ointed for or three months internshi# #ro2ram. 'here 3as also a
#lacement of different de#artments 3ithin the time. 'here I had to 3ork in credit >
2eneral $ankin2 de#artment desks as a routine 3ork. It 3as difficult to collect the
information rele%ant m* re#ort& $ecause the #eo#le of this Bank 3as so $us* 3ith
their dut* that the* cannot $e a$le to 2i%e me much time. Here I tr* to co%er the
acti%ities and rules and re2ulation related to m* re#ort.
6> LIMI+#+I/5S /9 +3 S+UD2
Althou2h I ha%e o$tained 3holehearted coo#eration from em#lo*ee of Dutch-Ban2la Bank
5td& 6le#hant oad $ranch $ut the* 3ere e7tremel* $us*. So the* 3ere not a$le to 2i%e me
much time& as the* and I 3ould like. Besides& total duration of internshi# is not sufficient to
2i%e me more than a su#erficial idea of the functionin2 of the %arious de#artments. I 3as
rotated throu2h on the 3a* of m* stud*. I ha%e faced the follo3in2 #ro$lems& 3hich ma* $e
termed as the limitationshort comin2 of the stud*. 'hese are as follo3s:
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It 3as %er* different to collect the information from %arious #ersonnel for the 8o$
constrain.
Bank #olic* 3as not disclosin2 some data and information for o$%ious reasons.
Due to time limitation man* of the as#ects could not $e discussed in the #resent
re#ort.
Since the $ank #ersonnel 3here %er* $us*& the* could #ro%ide me little time.
Another si2nificant #ro$lem faced durin2 the #re#aration of this re#ort 3as the
contradictor* e7#lanation of a sin2le su$8ect $* different em#lo*ee.
Because of the limitation of information some assum#tion 3as made. So there ma* $e
some #ersonal mistakes in the re#ort.
'he time months out of months onl*& 3hich is in sufficient to kno3 all acti%ities
of the $ranch are #re#are the re#ort.
'he insufficienc* of information 3as not ade4uatel* a%aila$le. Moreo%er& the sources
3ere ha/ardous and in-disci#line. 'herefore the #ro%idence of insufficient
information came out as a constraint.
5on2 internshi# 3as not a$le to #ro%ide us 3ith ade4uate time to im#ose more
data$ases so#histic to the formulation of this re#ort.
Durin2 the internshi#& in man* #art of our en4uir*& our #erformance 3as hindered $*
some sort of ine7#erience of some of the #ersonnel of the $ank due to lack of
orientation to the #rocedure of such internees.
'here 3as no remuneration for our internshi# that demorali/es our moti%ation to kee#
consistenc* in our e7tensi%e stud*.
Sometimes 3e had to face une7#ected conduct on the #art of some of the #ersonnel
that 3as su##osed to $e a little $it more cordial.
'he stud* 3as limited onl* to the Dutch-Ban2la Bank 5td.
Another Pro$lem 3as time constraints. 'he duration of m* 3ork 3as onl* three
months. But this time is not enou2h for a com#lete and fruitful stud*.
0ettin2 financial information is %er* hard 8o$.
'he Bank 3as a $us* one ha%in2 hea%* rush of #eo#le& 3hom officers need to deal
3ith. So allocation of time for an internet is %er* much tou2h for the officers of the
$ank.
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Althou2h there are a lot of limitations& I ha%e tried to #ut m* $est effort as far as
#ossi$le to #re#are the re#ort.
6? C/1!#G /9 +3 S+UD2
'o o$tain #ractical e7#erience a$out forei2n e7chan2e acti%ities $* in%ol%in2
Internshi# #ro2ram.
'o $uild #rofessional carrier in the $ankin2 sector as 3ell as an* financial institution.
'o kno3 a$out the 2eneral $ankin2 acti%ities in Ban2ladesh.
6@ !#+I/5#L /9 +3 S+UD2
Ban2ladesh is one of the underde%elo#ed countries in the 3orld. 'he com#an* of the countr*
has a lot left to $e desired and there are lots of sco#es for massi%e im#ro%ement. In an
econom* like this& $ankin2 sector can #la* a %ital role of an intermediar* can mo$ili/e the
e7cess fund of sur#lus sector to #ro%ide necessar* finance& to those sectors& 3hich are needed
to #romote for the sound de%elo#ment of the econom*. 5ike in man* other emer2in2 market
economies& commercial $anks in the Ban2ladesh econom* are to face an increasin2
com#etition for their $usiness in the comin2 da*s. 'heir $usiness 3ill no lon2er remain eas*
as the* had earlier the real chan2e in the $ankin2 $usiness has started to come 3ith 2o%t.s
decision to allo3 the $usiness in the #ri%ate sector in the middle of the ei2hties. 'his re#ort is
an effort to reflect a clear idea a$out the strate2ies& acti%ities and #erformance of Dutch-
Ban2la Bank 5td Ban2ladesh 5td. e2ardin2 Gorei2n e7chan2e $ankin2 #ractices in
Ban2ladesh- A case stud* of Dutch-Ban2la Bank 5td
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international s#onsor of the Bank. 'he GM( is the Dutch De%elo#ment Bank of the
Netherlands s#eciali/ed in financin2 of #ri%ate enter#rises in Asia& Africa& 5atin America and
6astern 6uro#e. )nder a technical assistant 2rant from the GM(& ABN-AM( Bank of the
Netherlands #ro%ided technical assistance to Dutch-Ban2la Bank 5td.
C3#4+!- +/
B#CG!/U5D /9 +3 3IS+/!2
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76 3IS+/!2 /9 B#5
A $ank is a financial institution licensed $* a 2o%ernment. Its #rimar* acti%ities include
#ro%idin2 financial ser%ices to customers 3hile enrichin2 its in%estors. Man* financial
acti%ities 3ere allo3ed o%er time. 'he le%el of 2o%ernment re2ulation of the $ankin2 industr*
%aries 3idel*& 3ith countries such as Iceland& ha%in2 relati%el* li2ht re2ulation of the $ankin2
sector& and countries such as ?hina ha%in2 a 3ide %ariet* re2ulations $ut no s*stematic
#rocess that can $e follo3ed t*#ical of a communist s*stem. 'he name $ank deri%es from the
Italian 3ord $anco desk$ench@& used durin2 the enaissance $* Je3ish Glorentine $ankers&
3ho used to make their transactions a$o%e a desk co%ered $* a 2reen ta$lecloth. Ho3e%er&
there are traces of $ankin2 acti%it* e%en in ancient times.
In fact& the 3ord traces its ori2ins $ack to the Ancient oman 6m#ire& 3here mone*lenders
3ould set u# their stalls in the middle of enclosed court*ards called macella on a lon2 $ench
called a $ancu& from 3hich the 3ords $anco and $ank are deri%ed. As a mone*chan2er& the
merchant at the $ancu did not so much in%est mone* as merel* con%ert the forei2n currenc*
into the onl* le2al tender in omeLthat of the Im#erial Mint. 'he earliest e%idence of
mone*-chan2in2 acti%it* is de#icted on a sil%er drachm coin from ancient Hellenic colon*
'ra#e/us on the Black Sea& modern 'ra$/on& and c. "!" B?& #resented in the British
Museum in 5ondon. 'he coin sho3s a $ankers ta$le
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'he insurance $usiness 3as also nationali/ed and $ecame a source of #otential in%estment
funds. ?oo#erati%e credit s*stems and #ostal sa%in2s offices handled ser%ice to small
indi%idual and rural accounts. 'he ne3 $ankin2 s*stem succeeded in esta$lishin2 reasona$l*
efficient #rocedures for mana2in2 credit and forei2n e7chan2e. 'he #rimar* function of the
credit s*stem throu2hout the 1E!s 3as to finance trade and the #u$lic sector& 3hich to2ether
a$sor$ed E" #ercent of total ad%ances. 'he 2o%ernments encoura2ement durin2 the late
1E!s and earl* 1,!s of a2ricultural de%elo#ment and #ri%ate industr* $rou2ht chan2es in
lendin2 strate2ies. Mana2ed $* the Ban2ladesh Krishi Bank& a s#eciali/ed a2ricultural
$ankin2 institution& lendin2 to farmers and fishermen dramaticall* e7#anded. 'he num$er of
rural $ank $ranches dou$led $et3een 1EE and 1,"& to more than &!. Denationali/ation
and #ri%ate industrial 2ro3th led the Ban2ladesh Bank and the Corld Bank to focus their
lendin2 on the emer2in2 #ri%ate manufacturin2 sector. Scheduled $ank ad%ances to #ri%ate
a2riculture& as a #ercenta2e of sects oral 0DP& rose from #ercent in G 1E to 11 #ercent
in G 1,E& 3hile ad%ances to #ri%ate manufacturin2 rose from 1 #ercent to " #ercent. 'he
transformation of finance #riorities has $rou2ht 3ith it #ro$lems in administration. No sound
#ro8ect-a##raisal s*stem 3as in #lace to identif* %ia$le $orro3ers and #ro8ects.
5endin2 institutions did not ha%e ade4uate autonom* to choose $orro3ers and #ro8ects and
3ere often instructed $* the #olitical authorities. In addition& the incenti%e s*stem for the
$anks stressed dis$ursements rather than reco%eries& and the accountin2 and de$t collection
s*stems 3ere inade4uate to deal 3ith the #ro$lems of loan reco%er*. It $ecame more common
for $orro3ers to default on loans than to re#a* themO the lendin2 s*stem 3as sim#l*
dis$ursin2 2rant assistance to #ri%ate indi%iduals 3ho 4ualified for loans more for #olitical
than for economic reasons. 'he rate of reco%er* on a2ricultural loans 3as onl* E #ercent in
G 1,& and the rate on industrial loans 3as e%en 3orse. As a result of this #oor sho3in2&
ma8or donors a##lied #ressure to induce the 2o%ernment and $anks to take firmer action to
stren2then internal $ank mana2ement and credit disci#line. As a conse4uence& reco%er* rates
$e2an to im#ro%e in 1,E. 'he National ?ommission on Mone*& ?redit& and Bankin2
recommended $road structural chan2es in Ban2ladeshs s*stem of financial intermediation
earl* in 1,E& man* of 3hich 3ere $uilt into a three-*ear com#ensator* financin2 facilit*
si2ned $* Ban2ladesh 3ith the IMG in Ge$ruar* 1,E. (ne ma8or e7ce#tion to the
mana2ement #ro$lems of Ban2ladeshi $anks 3as the 0rameen Bank& $e2un as a 2o%ernment#ro8ect in 1E and esta$lished in 1, as an inde#endent $ank. In the late 1,!s& the $ank
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continued to #ro%ide financial resources to the #oor on reasona$le terms and to 2enerate
#roducti%e self-em#lo*ment 3ithout e7ternal assistance. Its customers 3ere landless #ersons
3ho took small loans for all t*#es of economic acti%ities& includin2 housin2. A$out E!
#ercent of the $orro3ers 3ere 3omen& 3ho 3ere other3ise not much re#resented in
institutional finance. ?ollecti%e rural enter#rises also could $orro3 from the 0rameen Bank
for in%estments in tu$e 3ells& rice and oil mills& and #o3er looms and for leasin2 land for
8oint culti%ation. 'he a%era2e loan $* the 0rameen Bank in the mid-1,!s 3as around 'k
&!!!
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concession loans& #ri%ate creditors accounted for onl* a$out #ercent of outstandin2 #u$lic
de$t. 'he e7ternal #u$lic de$t 3as )S.9 $illion& and annual de$t ser%ice #a*ments 3ere
)S9E million at the end of G 1,.
78 C/5DI+I/5 I5 B#5I5G SC+/! I5 B#5GL#DS3
Bankers $elie%e that the Ban2ladesh Bank is entirel* res#onsi$le for such condition in the
$ankin2 sector. As #er their o#inion& in the #ast se%en months of !1! Ban2ladesh Bank
increased the ? -- 'he $anksQ mandator* rate of reser%e to the central $ank t3ice. Because
of this& a##ro7imatel* 'k 9! $illion came to the central $ank from the $anks. As a result
li4uidit* crisis $e2an in the $ankin2 sector. As a result& in the first month of this *ear the rate
of interest in the call mone* market clim$ed u# to 1E! #ercent that is recorded as the hi2hest
until no3 Dr Saleh )ddin Ahmed& former 2o%ernor of the Ban2ladesh Bank& said that the
initiati%e of the central $ank to increase ? 3as not #ro#er and 3as not a timel* ste#. He
said that the reason 3as that in Decem$er& the $anks ad8ust their entire *earQs transaction. In
this time& the* normall* dis$ursed less amount of credit and collected 2reater amount of
de#osits& he stated.
As a result& their $alance sheet remained in 2ood sha#e& he said. But as ? rate 3as
increased at that #articular time& $anks had to kee# their de#osited mone* 3ith the central
$ank on mandator* $asis& he stated. He said that the result had $een as it 3as #redicted.
Accordin2 to the anal*sts& the central $ank has to take res#onsi$le decisions for 2ettin2 rid of
this situation occurred in the $ankin2 sector. (ther3ise the* are antici#atin2 that the crisis in
the $ankin2 sector 3ill ha%e a ne2ati%e im#act on the o%erall econom*.
7: +3 3IS+/!2 /9 DBBL
Dutch-Ban2la Bank 5imited is a $rainchild of its chairman Mr. Mohammed Shaha$uddin
Ahmed. He dreamed it lon2 $ack& 3hen he had $een tr*in2 to arran2e fund for 'ami8uddin
'e7tile Mills 5imited
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$ankin2 #ro8ect in 1,. Mr. 0roosman & a $rilliant officer of GM( %isited Ban2ladesh and
3rote to Mr. G. J. Smit& De#ut* Mana2in2 Director of GM( a$out Mr. Ahmeds #ro#osal.
GM( sent fact findin2 terms that initiall* res#onded ne2ati%el* and commented that is little
sco#e in Ban2ladesh to float a $ankin2 $usiness. But Mr. Ahmed dont 2i%e u#& rather he
started e7#lorin2 more %i2orousl*. At last Mr. 6. H. J. 0root of small scale de#artment of
GM( in his letter dated Decem$er !E& 1 res#onded #ositi%el* indicatin2& Small
6nter#rises De#artment of GM( is in a #osition to finance intermediar* $ank@ and
accordin2l* asked for a $usiness #lan. In the *ear 1"& Ban2ladesh Bank in their letter no.
DB(D
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kind in Ban2ladesh. It $elie%es in to2etherness 3ith its customers& in its march on the road to
2ro3th and #ro2ress 3ith ser%ices. 'he* focus on trust customer to $ank. 'o achie%e the
desired 2oal& it has intention to #ursuit of e7cellence at all sta2es 3ith a climate of continuous
im#ro%ement. Because it $elie%es& the line of e7cellence is ne%er endin2. It also $elie%es that
its strate2ic #lan and $usiness net3orkin2 3ill stren2then its com#etiti%e ed2e o%er in ra#idl*
chan2in2 com#etiti%e en%ironment. Its #ersonali/ed 4ualit* ser%ices to the customers 3ith the
trend of constant im#ro%ement mi2ht $e cornerstone to achie%e its o#erational success.
7? BUSI5SS 43IL/S/432
'he DBB5s cor#orate #hiloso#h* is to $uild its non-funded face and commission income
stream& thus reducin2 its reliance on interest income alone. B* #ro%idin2 a one 3indo3
ser%ice to its customers- the Bank is committed to $ein2 a so#histicated& #rominent and
#rofessional institution. Durin2 the first fi%e *ears Dutch Ban2la Banks strate2* 3as focused
on continuin2 in #ro%ident of internal #rocedures and o#eratin2 structures& to ha%e a 2reater
control on the 4ualit* of its $usiness and to #ro%ide $etter mana2ement direction.
DBB5s focus is to #ro%ide one counter ser%ice to its clients co%erin2:
?ommercial Bankin2
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C3#4+!-+3!
G5!#L B#5I5G S!1IC /9 DBBL
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86 #B/U+ +3 DBBL L43#5+ !/#D B!#5C3
Dutch-Ban2la 6le#hant oad Branch is located at 11,&Dr. Kudrat-6-Khuda oad& 6le#hant
oad& Dhaka-1!". 0eneral $ankin2 is the startin2 #oint of all the $ankin2 o#erations.
0eneral $ankin2 is the front-side $ankin2 ser%ice de#artment. It #ro%ides those customers
3ho come fre4uentl* and those customers 3ho come one time in $ankin2 for en8o*in2
ancillar* ser%ices. In some 2eneral $ankin2 acti%ities& there is no relation $et3een $anker and
customers 3ho 3ill take onl* one ser%ice from $ank. 6%er* da* it recei%es de#osits from the
customers and meet s their demand for cash $* honorin2 che4ues. It o#ens ne3 accounts&
remit funds& issues $ank drafts and #a* orders etc. Since $ank is confined to #ro%ide the
ser%ices e%er* da*. 0eneral $ankin2 is also kno3n as retail $ankin2. (n the other hand&
there are some customers 3ith 3ho $ank are doin2 its $usiness fre4uentl*
87 L/C#+I/5 /9 L43#5+ !/#D B!#5C3
Address:11,&Dr. Kudrat-6-Khuda oad&
6le#hant oad& Dhaka-1!"
Phone No :
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88 G5!#L B#5I5G #C+I1I+IS
0eneral $ankin2 is the startin2 #oint of all the $ankin2 o#erations. It is the de#artment& 3hich
#ro%ides da*-to-da* ser%ices to the customers. 6%er* da* it recei%es de#osits from the
customers and meets their demand for cash $* honorin2 che4ues. It o#ens ne3 accounts&
close accounts& reacti%e accounts& and counsels for the ne3 de#ositor* accounts. It also remits
funds& transfers funds $* #a* order and eas* #a*. Since $ank is confined to #ro%ide the
ser%ices e%er*da* 2eneral $ankin2 is also kno3n as retail banking.@
Account o#enin2 section
emittances Pa*-(rder
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a2ainst such de#osit. 'here are t3o facilities for the #erson 3ho o#ens a current account.
'he* are:
(%erdraft facilit*
?ollection of check transfer of mone* renderin2 a2enc*& 2eneral utilit* ser%ice.
A #erson can o#en a current account or an* entit* the entr* can $e a #artnershi# firm& 5td&
com#an*& #ro#rietorshi# firm& association& clu$s etc. for o#enin2 a current ac of the a$o%e&
the re4uirements and ste#s& 3hich are follo3ed $* this $ranch are the follo3in2
9or a erson*
'here is an indi%idual a##lication from for o#enin2 #ersonal current account. 'he #erson&
3ho 3ants to o#en this t*#e of ac& is said to fulfill the follo3in2 re4uirements:
Name& fathershus$ands name
(ccu#ation
Mandate in 3ritin2
Declaration of nominee< Nominee should $e first $lood=
5etter of introduction
Introducer S#ecimen si2nature
'3o co#ies of #ass#ort si/e #hoto2ra#hs
Initial de#osit of 'k 1!!!.
9or ;oint stock comanies) #ssociation) Clu(s etc*
In case of o#enin2 a current ac of 8oint stock com#anies& association& clu$s etc& the follo3in2
re4uirements are said to fulfill: 'rue co#ies of certificate of incor#oration or re2istration
'rue co#ies of certificate of commencement of $usiness
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'rue co#ies of resolution of the $oard of Directors of Mana2in2 committee0o%ernin2
$od*& re2ardin2 conduct of ac.
?ertificate list containin2 names and si2nature of Directors(fficer $earers.
9or 4artnershiE4rorietorshi Comany*
'o o#en a current ac on the name of an* #artnershi# or #ro#rietorshi# com#an*& the
follo3in2 documents are re4uired:
Gilled u# a##lication from statin2 a$out the name and address of the firm.
Partnershi# deed.
'rade license.
Introducer Si2nature $oth form and #ass#ort si/e #hoto.
'3o co#ies of #hoto2ra#h.
6ndorsement of an ac holder on the same $ranch.
)ndertakin2 declaration a$out the #artnershi# is taken $* the $ank in a 3rite #a#er
< for #ro#rietorshi# firm=
9or u(lic and rivate limited comany*
'he documents re4uired to o#en a current ac 3ill $e:
?o#* of certificate of incor#oration or re2istration& trade license.
?o#ies of the ?ertificate of Business.
'rue co#* of memorandum of association and articles association a$ide $* the la3.
'rue co#* of resolution of the $oard of Directors Mana2in2 Directors 0o%ernin2
Bod* re2ardin2 conduct of the ac.
?ertificate list containin2 names and si2nature of Directors(fficer $earers.
In order to o#en an account& the customer is first of all asked to fill u# the a##lication
form 2i%en from the $ank. 'he $ank re4uires fe3 documents of the client due to the
#rocedure& such as #ro#osal for o#enin2 an account& name and full address&
occu#ation.
Saving #ccount /ening*
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A sa%in2 is meant for the #erson of the lo3er and middle classes 3ho 3ishes to sa%e a #art of
their income to meet their future needs and intend to earn an income from their sa%in2.
0enerall* DBB5 offers 9 on interest rate of sa%in2s account. A #erson cans transaction
easil* da* to da* and sa%e their mone* to the $ank.
'he Procedure of Sa%in2s Account (#enin2 is as follo3s:
'he $ank offers a reasona$le rate of interest.
'he necessar* ste#s for o#enin2 a sa%in2 ac.
Names and Addresses of the #art*.
(ccu#ation.
?o#* of utilit* $ills most recent
Gathers Hus$ands name
Mandate in 3ritin2.
Declaration of nominee
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!euirement for oening Fcel #EC
A##licants t3o co#ies of #ass#ort si/e #hoto2ra#hs from indi%idual are taken.
A##licants must su$mit their citi/enshi# certificates: %alid #ass#ort or NID co#* or
S.S.? re2istration card.
Student ID card coy
Introducers si2nature and accounts num$er and A? name %erified $* le2al officer.
Nominee name& NID card& si2nature and #hoto2ra#h one co#*.
Nominee must $e first $lood.
A##licant also su$mit a co#* of utilit* $ill that means 6lectricit* $ill or 0as $ill or
Cater $ill for mention the #resent address.
If )I) student the utilit* $ill co#* is not needed.
4oHer #EC*
'he Po3er account also name is called salar* account .'he #erson 3ho are in%ol%ed 3ith
ser%ice the* can o#en salar* or #o3er account. 6le#hant oad Branch the* are linked u# 3ith
different or2ani/ation to o#en a #o3er account. 'he* are also linked u# 3ith )I). 'he code
of #o3er account is 1!.!euirement for oening 4oHer #EC
A##licants t3o co#ies of #ass#ort si/e #hoto2ra#hs from indi%idual are taken.
6m#lo*ees DBB5 ID card co#*
A##licants must su$mit their citi/enshi# certificates: %alid #ass#ort or NID co#* or
S.S.? re2istration card.
9orHarding letter must (e needed
Introducers si2nature and accounts num$er and A? name %erified $* le2al officer.
Nominee name& NID card& si2nature and #hoto2ra#h one co#*.
Nominee must $e first $lood.
887 !emittances %Local and 9oreign'
'he 2eneral $ankin2 of 6le#hant road $ranch has included the emittance section .In this
section the officer #ro%ide mone* to the customers. 'he total amount of mone* 3hich is
comes from forei2n countr*. 'here are some issues that are 2i%en $elo3:
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Demand Draft
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Issuin2 $ranch re4uests another $ranch to #a* s#ecified mone* to the s#ecific #a*ee on
demand (y +elegrah E+elehone. Pa*ment is made from ordered $ranch. '' can $e remit
an*3here in the countr*. Bank char2e a commission #lus tele#hone char2e. Ho3e%er this
ser%ice is a%aila$le onl* for a limited num$er of customers. Chere the remitter desires the
$anker to remit the funds to the #a*ee instead of #urchasin2 a draft himself& the $anker does it
throu2h a Mail 'ransfer Ad%ice. 'he transfer is so called as the ad%ice is dis#atched to the
#a*in2 office $* ordinar* mail. 'he #a*ee must ha%e an account 3ith the #a*in2 office as the
amount remitted in such a manner& is meant for credit to the #a*ees account and not for cash
#a*ment.
+elegrahic +ransfer
'' is affected $* tile $ank throu2h tested tele7 messa2e attested $* secret check Si2nal on
recei#t of 3hich tile #a*in2 officer #a* the amount to the #a*ee in cash throu2h a tele2ra#hic
#a*ment order or credit his account& as the case ma* $e.
DBB5 follo3s the follo3in2 #rocedures:
i= 'he customer de#osits mone* 3ith DBB5 to $e sent.
ii= 'he customer o$tains a cash memo containin2 '' serial num$er.
iii= '' serial num$er& notif*in2 #art name is mentioned in the tele7 messa2e.
i%= 'he 'ele7 De#artment confirms transmission of the tele7.
+ransfer of account
In this section the Account holder can transfer hisher account from one $ranch to another
$ranch. Gor this transfer of account he she must a##l* to the mana2er of the $ranch 3here
he is maintainin2 his account. 'hen the mana2er sends a re4uest to the mana2er of the $ranch
3here the account holder 3ants to transfer to his account. Cith his re4uest& he sends ori2inal
co#* of account o#enin2 a##lication and s#ecimens si2nature sheet and the #hotoco#* of
a##lication for transferrin2 the account 3ith the $alance remained in the account.
888 Card) Sms #lert) Cheue Book Section
In this section the officer #ro%ide the card to the customers. ?ustomers can $e ne3 account
holder so after the o#enin2 account a customer 2ets the card instantl*. 'here are some issues
that are in%ol%ed in this section:
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Pro%idin2 ne3 A'M card
'o 2i%e ne3 ?he4ue $ook
'o 2i%e ne3 Pin Num$er
SMS alert
Internet Bankin2
Cheue (ook
'o facilitate 3ithdra3als and #a*ment to third #arties $* the customer& DBB5
#ro%ides che4ue $ook to the customer ?D account che4ue $ook contains ! and "! leaf& 3hile SB account che4ue $ook
has 1! leafsBank maintains a se#arate re2ister in this re2ard e4uisition sli# is #ro%ided to the customer in che4ue $ook to issue ne3 che4ue
$ook A ne3 che4ue $ook should $e deli%ered onl* to the account holder (ther3ise&
authori/ation letter is needed from client for deli%er* to other #erson
Issuance of Cheue Book*
0eneral Ser%ice Di%ision of Head (ffice 3ill su##l* re4uired ?he4ue Books to $ranches
a2ainst their re4uisition from time to time. (n recei#t of these che4ue $ooks other securit*
stationer*& the $ranch shall record the stock in the Securit* Stationer* Stock e2ister. Chile
recordin2 the stock& the Prefi7 num$er shall in%aria$l* $e mentioned.
A fe3 ?he4ue Books re4uired for current consum#tion of the De#osit De#artment
shall $e taken out from the main stock under control of an authori/ed officer. 'he
concerned issuin2 officer 3ill kee# these che4ue $ooks in a $o7 under lock and ke*
and issue the same to the clients durin2 the da*. 'he ?he4ue Books 3ill $e entered in
the ?he4ue Book Issue e2ister and $e issued to clients a2ainst their
ackno3led2ement in the re2ister. Se#arate folios 3ill $e o#ened in the ?he4ue Book issue e2ister for ?D SB S'D
account che4ue $ooks. Chen a che4ue $ook is re4uired $* a ne3 customer& the che4ue re4uisition sli# #asted
on to# of each che4ue $ook is to $e 2ot si2ned $* him. 'he officer res#onsi$le for
issuin2 che4ue $ook shall 2et the si2nature of the account holder %erified from the
officer in-char2e of the De#osit De#artment and issue the che4ue $ook to the
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customer after #uttin2 his initial in the ca2e of che4ue series su$8ect to the condition
that account o#enin2 form is com#lete in all res#ects and other3ise in-order. 'he re4uisition sli# shall $e sent to the res#ecti%e ?om#uter 'erminal for #ostin2 in
the res#ecti%e account. All su$se4uent ?he4ue Books shall $e issued a2ainst ?he4ue e4uisition Sli#s
e7tracted from the #re%ious che4ue $ooks issued to the customerO ho3e%er& the
re4uisition sli# #asted 3ith su$se4uent che4ue $ook on its first #a2e shall $e
destro*ed. 'he che4ue re4uisition sli# dul* filled in $* the customer shall $e for3arded to
che4ue #ostin2 'erminal to ascertain :
The average balance maintained by the customer
Chether #re%ious che4ue lea%es are #ro#erl* consumed. ?he4ues are not fre4uentl* returned for insufficient funds in the account.
Pa*ment of ?he4ue is not fre4uentl* sto##ed.
'he manner in 3hich the account is o#erated.
'he account is not dormant.
If an* of the defects is noticed $* #ostin2 officer& he she shall make remark on the re4uisition
sli# and for3ard it to ?ancellation (fficer 3ho 3ill decide 3hether che4ue $ook should $e
issued to the customer.
In cases& 3here the account is found in order and the #art* is kno3n& the cancellation
officer shall %erif* the si2nature on the sli# and send it $ack to che4ue $ook issuin2
officer for issuance of the same.
In case of a Dormant Account& the #art* shall call on the Mana2er #ersonall* for
identification #ur#ose. 'he Mana2er on $ein2 satisfied a$out the confides of the
a##licant shall allo3 issuance of che4ue $ook.
In case of sli2htest difference in si2nature or sus#icion aroused a$out the confides of
the #erson #resentin2 the che4ue re4uisition sli#& #ro#er in4uiries shall $e made $*
contactin2 the account holder. 'he officer must $e satisfied $efore finall* issuin2 the
che4ue $ook.
In case 3here re4uisition sli# e7tracted from a #re%ious che4ue $ook is not #resented&
e%er* #ossi$le care shall $e e7ercised to esta$lish the confides of the case& #articularl*
3hen address of a constituent has $een recentl* chan2ed and or a simultaneous
re4uest to chan2e the address is made.
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hen Cheue Book is Lost
A 2uarantee form is taken from the account holder 3hen his $ook is lost& 3here he
indemnifies the $ank in this re2ardA ne3 re4uisition slee# is 2i%en to him for a ne3 che4ue
$ook(nl* a %er* senior officer 3ill a##ro%e the case
Crediting interest
?reditin2 interest im#lies that so for interest accrued is attached 3ith the #rinci#al amount In
#ractice of DBB5
a. GD interest is credited at the maturit* date
$. Gor SB account the creditin2 season is si7-month #eriod
c. Interest of S'D is credited after each *ear
+aF
Chate%er the amount of interest is accrued 1! ta7 is de$ited from the account at the time of
creditin2 interest.
88: Bills and clearing section
In this section the officer collect the che4ue and sent those che4ue to the Ban2ladesh $ank
house that is clearin2. ?learin2 is a s*stem $* 3hich a $ank can collect customers fund from
one $ank to another throu2h clearin2 house .?learin2 House is a #lace 3here the
re#resentati%es of different $anks 2et to2ether to recei%e and deli%er che4ue 3ith another
$anks. 'here are some t*#es of clearin2 section .'hese are as follo3s:
Clearing*
As far as safet* is concerned& customers 2et crossed che4ue for the transaction.As 3e kno3
crossed che4ue cannot $e encased from the counterO rather it has to $e collected throu2h$ankin2 channel i.e. clearin2. Gor e7am#le& a client of DBB5 Bank recei%ed a che4ue of
another $ank& 3hich is located 3ithin the clearin2 ran2eO de#osit the che4ue in his account at
DBB5 Bank. No3 DBB5 Bank 3ill credit his account and collected it. 'hou2h the amount is
credited in the customerQs account $ut he 3ill not 2et the mone* until he che4ue is honored.
+yes of Clearing
/utHard Clearing
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(ut3ard clearin2 means 3hen a #articular $ranch recei%es instrument dra3n on the other
$ank 3ithin the clearin2 /one and those instruments for collection throu2h the clearin2
arran2ement is considered as out3ard clearin2 for that #articular $ranch.
InHard Clearing*
Chen a #articular $ranch recei%es instruments 3hich on them and sent $* other mem$er $ank
for collections are treated as in3ard clearin2.
Clearing house
?learin2 House is a #lace in the ?entral Bank 3here different $anks come to settle their
interrelated lia$ilities. ?learin2 House S*stem 'he mechanism of 3orkin2 at a ?learin2
House in 2eneral is as follo3s:
6%er* ank of the localit*& 3hich is a mem$er of
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88= 9D! & 4ay-/rder %4/'
A fi7ed de#osit account is re#a*a$le after the e7#ir* of a #redetermined #eriod fi7ed $* the
customer himself. 'he #eriod %aries from three months to three *ears. 'he customer ma*
o#en hisher account for different time #eriods& 3hich ma* $e for three months& si7 months&
one *ear& t3o *ears and three *ears.4ay /rder2i%es the #a*ee the ri2ht to claim #a*ment
from the issuin2 $ank. Pa*ment is made from issuin2 $ranch onl*. 0enerall* remit fund
3ithin the clearin2house area of issuin2 $ranch. Bank char2es onl* commission for this.
Ho3e%er #art* must ha%e an account 3ith the $ank& so that 3hene%er the fund refund the*
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'hou2h GD is an Ac& it is somethin2 different from other ac. GD is a lon2 term de#osit.
)suall* customers are allo3ed to o#en this ac for a certain #eriod. 'he rate of interest %aries
in accordance 3ith the terms of de#osit.
!euirement for oening 9D!
A##licants one co#* of #ass#ort si/e #hoto2ra#hs from indi%idual is taken.
A##licants NID co#*.
Nominee name& NID card& si2nature and #hoto2ra#h one co#*.
Nominee must $e first $lood.
/ening /f 9iFed Deosit #ccount %9D!'
'he de#ositor has to fill an a##lication form.
In case of a de#osit in 8oint name& DBB5 also takes the instructions re2ardin2
#a*ment of mone* on maturit* of the de#osit.
'he $anker also takes the s#ecimen si2natures of the de#ositor the date on 3hich the de#osit
3ill mature.
4remature ncashment of 9D!*
A de#ositor has the ri2ht to claim for refund of his de#osit $efore e7#ir* of the fi7ed term
thereof. Bank ma* in s#ecial consideration allo3 #remature encashment on a##lication of the
de#osit su$8ect to the under noted condition:
Gor GD 3hich are months maturit* no interest 3ill $e #a*a$le at #remature
encashment& onl* the #rinci#le amount 3ill $e refunded.
Chen #remature encashment is allo3ed of and GD 3ith tenure of o%er months&
interest 3ill $e #aid if enchased $efore e7#ir* of months at the rate of months
#rescri$ed interest rate.
Premature encashment is allo3ed of and GD 3ith tenure of o%er months& interest
3ill $e #aid if enchased $efore e7#ir* of o%er 1 months at the rate of months
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#rescri$ed interest rate and the same theor* 3ill also $e a##lica$le for #remature GD
encashment of *ears and *ears.
Short +erm Deosit*
S#ecial notice account 3hich is commonl* kno3n as short term de#osit ac 3ill kee# in the
short term led2er. 'he customer should dull* si2n ac o#enin2 form and s#ecimen si2nature
card. De#osits held in this account are #a*a$le on short notice. Normall* cor#orate $odies&
$ank and financial or2ani/ations in%est their funds tem#oraril*. No3-a-da*s& #ri%ate
indi%iduals ha%in2 sound financial means also o#en this t*#e of de#osit accounts.
?ustomers de#osit mone* for a shorter #eriod of time.
S'D account can $e treated as semi-term de#osit
S'D should $e ke#t for at least thirt* da*s to 2et interest.
'he interest offered for S'D is less than that of sa%in2s de#osit.
In #ractice& DBB5 offers ".!! rate of interest
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If the instrument is lost from the #ossession of the holder& the holder is asked to fulfill the
follo3in2 re4uirements:
Part* should inform it to the $ank immediatel*O
Gurnish an Indemnit* BondO
(n fulfillin2 the a$o%e re4uirements& a du#licate GD is then issued to the
customer $* the $ank.
!eneHal of 9D!*
GD is automaticall* rene3ed 3ithin se%en da*s after the date of its maturit* if
the holder does not come to en-cash the instrument.
ene3al 3ill $e for the #re%iousl* a2reed maturit* #eriod.
88< Cash Division
?ash de#artment is the most %ital and sensiti%e or2an of the $ranch as it is deals 3ith all
kinds of cash transactions. 'his de#artment starts the da* 3ith cash in %ault. 6ach da* some
cash that is o#enin2 cash $alance are transferred to the cash officers from the cash %ault. Net
fi2ures of this cash recei#ts and #a*ments are added to the cash $alance. 'he fi2ure is called
closin2 $alance. 'his closin2 $alance is then added to the %ault. Chen the %ault e7ceeds thelimit& the e7ceed mone* send to #rinci#al office and 3hen there is found an* shorta2e the
$ranch re4uisites the amount from the Princi#al (ffice. In m* $ranch& there are ei2ht
em#lo*ees in cash and ?hief ?ash (fficer Mana2er monitors them.
Cash !eceits
Chen the client de#osited amount in the $ank& the cash officer follo3 the follo3in2 common
#recautions:
?heck and count the recei%ed cash
Make sure the amount in 3ords and num$ers in the de#osit sli# are same
?heck account title and account num$er
Cash 4ayment
Chen the client #ress the cash che4ue then the cash officer follo3 the follo3in2 common
#recautions:
'he date of the che4ue is not crossed the si7 month
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Post dated che4ue
'aka in 3ords and and fi2ure are same
Balance in the account is a%aila$le
Si2nature is matched 3ith the card si2nature or account.
8: S+!#+GIC DCISI/5S /9 DBBL
/nline Banking*
Dutch-Ban2la Bank 5imited no3 usin2 localit* de%elo#ed Branch Bankin2 soft3are in
almost all its $ranches. But 3ith a %ie3 to #ro%ide 3orld class $ankin2 facilities to its
customer& DBB5 has undertook u#on an am$itious #ro2ram $* in%estin2 'k."!.!! million
for ac4uirin2 a state-of-the-art total automation #ro8ect 3hich DBB5 claimed to said as
'rul* (n 5ine Bankin2@. 'he decision of ac4uirin2 the automation #ro2ram has $een $ased
on the Banks o3n core com#etence in its I' di%ision& reinforced 3ith the site %isit of $anks
hi2hest mana2ement of similar installations of different $anks in India and Sri 5anka.
DBB5 choose /!#CL 9L0CUB$ from i-fle7 solution@& a 3orld leader in
technolo2* solutions for the financial ser%ices industr*& 3hich 3ill ena$le DBB5 to render a
full* automated real time an*-3here an*-$ranch $ankin2 ser%ices& co%erin2 9 hours a da*
and " da*s a *ear. As #art of the on-line $ankin2 #ro2ram& internet $ankin2& DBB5 Ne7us
De$it ?ard& DBB5 Maestro cirrus De$it ?ard and DBBl ?redit card 3ill also $e launched
shortl* and all #re#arations re2ardin2 this are in final sta2e.
'o fulfill this decision& DBB5 has set-u# a most modern and lar2est state of the art data centre
and ha%e assem$led a core 2rou# of com#etent I' #rofessionals and other #ersons. 'hese
#ersons ha%e under2one a t3o-month e7tensi%e trainin2 course in Ban2alore and Mum$ai&
India on G56T?)B6. 'he Data ?entre 3ill also ha%e an on-line Diaster eco%er* site
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Deosits roduct Loan 4roducts ServicesInvestment
E 9inance
?urrent De#osit Secured o%erdraft?redit ?ardSer%ices
?or#orateGinance
Sa%in2s De#osit 0eneral 5oan De$it ?ardIndustrialGinance
Short 'erm De#osit House $uildin2 5oan emittancePro8ectGinance
'erm De#osit Staff 5oan Pa* order
Gorei2n ?urrenc*De#osit
'rans#ort 5oan Master card
Sa%in2s Scheme5oan A2ainst 'rustecei#t
Fisa ?ard
67#orterQs G? De#osit
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SMS alerts for the customers. 'he* can al3a*s ena$le the o#tions $* 8ust fillin2 the ?ustomer
(#tions Gorm and an*time can disa$le it also. 6na$lin2 the internet $ankin2 and or the alert
$ankin2 3ill cost the customers a minimum cost #er *ear 3hich is afforda$le for the
customer.
8> #+M 5+/!EDBBL 50US 4#!+ICI4#+I5G B#5S
DBB5 maintains its o3n net3ork and automation
3ithout the in%ol%ementassistance of an* third
#art* com#anies. Access to A'M ser%ices fee is
BD' ! annuall* for DBB5 clients. Partner
$anks are char2ed a su$sidi/ed 'k. 1!& althou2hthe end #rice for the customer ma* $e hi2her due
to the e7tra char2es le%ied $* the #artner $ank. (n the di2ital da*
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De(it Cards
DBB5s card issuin2 #ortfolio is enriched 3ith $oth de$it and credit cards of %arious card
$rands. DBB5 is #ioneer in issuin2 de$it cards in Ban2ladesh. 'he first de$it card of the
countr*& the Ne7us de$it card 3as issued on Au2ust 19& !!9. Since then DBB5 has $een the
market leader 3ith the lar2est de$it card $ase. DBB5 issues $oth 6MF com#liant multi-
a##lication ena$led smart card and traditional ma2netic stri#e PIN-#rotected de$it cards. 'he
MF de$it card consisted of D*namic Data Authentication
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an* FISA card acce#tin2 P(S terminal or A'M. Since this card is 6MF com#liant chi# $ased
card& the transactions of this card are more secured 3hich #rotects cardholders $* #re%entin2
co#*in2 of card data and ensures a lia$ilit* shift $enefit 3hich #rotects cardholders in non-
6MF terminals.
Issuance 9ee %6st 2ear'*)SD 1E."
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has a ma7imum of "! da*s interest free
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su##lementar* card at a$solutel* free of cost. Moreo%er& no cash ad%ance fee is a##lica$le for
cash 3ithdra3al at Dutch Ban2la Bank A'Ms.
Credit Limit* BD' 1!!&!!! to BD' "!!&!!!
1irtual Card
Students #ursuin2 hi2her education andor scholarshi#s a$road are often re4uired to #a* the
fees and char2es online usin2 a credit card. Students are also re4uired to take %arious
e7aminations such as I65'S& '(6G5& 0MA'& 06 - all of 3hich re4uire them to re2ister
online for #a*in2 fees and char2es 3ith a credit card. Most students and their 2uardians
ho3e%er are not eli2i$le to ha%e a credit card from a $ank and thus do not ha%e one. 'o hel#
them& DBB5 introduced Firtual ?ard for the first time in Ban2ladesh in !11. 'his is not a
#lastic card - it is a #iece of #a#er inside a closed en%elo# 3hich carries %alid card num$er&
e7#ir* date and ?FF?F? 3hich can $e used for some s#ecific internet merchants related to
educational certifications authorities. 'he %irtual card is distri$uted from DBB5 $ranches
and the %alue is fi7ed as #er the re4uirement of the students. 'he DBB5 Firtual ?ard has
$ecome %er* #o#ular amon2st students.
Internet ayment
(n June !1!& Dutch Ban2la Bank 5td. announced to allo3 internet #a*ments s*stem.
)sin2 their Internet Pa*ment 0ate3a* merchants 3ill $e a$le to char2e their customersQ Fisa&
Masters& DBB5 Ne7us and Maestro cards. An* FisaMaster?ard cardholder
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ligi(ility
A##licants must $e #assed SS? or 64ui%alent e7am in !1. A##licants must ha%e 0PA ".!!
for under cit* cor#oration area SchoolInstitute& 0PA 9.E! for under district area
SchoolInstitute and 0PA 9."! for others remote area students
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Dhaka )ni%ersit*Qs lar2est e%er donation from a #ri%ate com#an*. 'he research center& 3hich
3ould $e the first of its kind in Ban2ladesh& 3ill $e su#er%ised $* reno3ned teachers&
scholars and researchers. It 3ill also a3ard scholarshi# to researchers and scholars at home
and a$road.
C3#4+!-9/U!
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C!DI+ M#5#GM5+ /9 DBBL
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:6 D9I5I+I/5 /9 C!DI+
'he 3ord credit comes from the 5atin 3ord ?redo meanin2 I $elie%e. It is a lenderQs trust in a
#ersonQs firmQs or com#an*Qs a$ilit* or #otential a$ilit* and intention to re#a*. In other 3ords&credit is the a$ilit* to command 2oods or ser%ices of another in return for #romise to #a* such
2oods or ser%ices at some s#ecified time in the future. Gor a Bank& it is the main source of
#rofit and on the other hand& the 3ron2 use of credit 3ould $rin2 disaster not onl* for the $ank
$ut also for the econom* as a 3hole.
'he o$8ecti%e of the credit mana2ement is to ma7imi/e the #erformin2 asset and the
minimi/ation of the non-#erformin2 asset as 3ell as ensurin2 the o#timal #oint of loan andad%ance and their efficient mana2ement. ?redit mana2ement is a d*namic field 3here a certain
standard of lon2-ran2e #lannin2 is needed to allocate the fund in di%erse field and to minimi/e
the risk and ma7imi/in2 the return on the in%ested fund.
?ontinuous su#er%ision& monitorin2 and follo3-u# are hi2hl* re4uired for ensurin2 the timel*
re#a*ment and minimi/in2 the default. Actuall* the credit #ortfolio is not onl* constituted the
$anks asset structure $ut also a %ital factor of the $ankQs success. 'he o%erall success in credit
mana2ement de#ends on the $anks credit #olic*& #ortfolio of credit& monitorin2& su#er%ision
and follo3-u# of the loan and ad%ance.
:7 9#C+/!S !L#+D I+3 C!DI+
isk
'ime
Interest rate
Securit* or ?ollateral
(#eratin2 67#ense
5e2al ?onsiderations
Inflation
Ginance ?har2e
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88 C!DI+ 9L/ /9 DBBL
?redit isk Mana2ement is $asic to risk mana2ement and controllin2& as it is the ma8or risk
factor in most $ank $usiness. 'herefore& a $ank should assess the de2ree of risk associated 3ith
each loan and its #rofita$ilit*. In this connection #rior assessment of and follo3 u# on a loan
transaction constitute essential in2redients of the credit risk control #rocess. An in-de#th
anal*sis of the $orro3er financial conditions& e7#ected usa2e of funds& a$ilit* to re#a*&
3illin2ness to re#a* and sources of re#a*ment all to2ether constitute ste# one in the risk control
#rocesses. ?ontinuous su#er%ision& monitorin2 and follo3-u# are hi2hl* re4uired for ensurin2
the timel* re#a*ment and minimi/in2 the default. Actuall* the credit #ortfolio is not onl*
constituted the $anks asset structure $ut also a %ital factor of the $ankQs success. 'he o%erall
success in credit mana2ement de#ends on the $anks credit #olic*& #ortfolio of credit&
monitorin2& su#er%ision and follo3-u# of the loan and ad%ance.
:: +24S /9 L/#5S #5D #D1#5CS /99!D B2 DBBL
'he makin2 of loan and ad%ance is al3a*s #rofita$le to a $ank. As the $ank mo$ili/es sa%in2s
from the 2eneral #eo#le in the form of de#osit& the most im#ortant task of it is to dis$urse the
said de#osit as loan or ad%ance to the mass #eo#le for the de%elo#ment of commercial&
industrial 3ho are in need of fund for in%estment. 5ike other $usiness firm& the main #ur#ose
of the commercial $ank is to make #rofit. 'he #rofita$ilit* of the $anks de#ends on the
efficient manner and a%enues in 3hich the resources are em#lo*ed. DBB5 has made so far
efficient use of the de#osit and has the classified rates under control. 'he Bank dis$urses loan
in different form. It %aries in #ur#ose 3ise& mode 3ise and sector 3ide. 'he %arieties used $*
DBB5 are $riefl* descri$ed $elo3 3ith the common terms and condition and #erformance in
each mode.
Classification of #dvance* Commercial & Industrial Credit*
1. ?or#orate ?redit Scheme.. etail ?redit Scheme
::6 Cororate Credit Scheme
'he $ank is entrusted 3ith the res#onsi$ilit* of #ro%idin2 short& medium and lon2 term loans
and other financial assistance for #romotion of industrial sectors. 'here are t*#es of
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cor#orate credit scheme:
!ash !redit
(%er Draft
Secured (%er draft
::7 !etail Credit Scheme*
'he $ank also #ro%ides retail loan to indi%idual customer. 'here are different t*#es of retail
loan 3hich hel#s customer to fulfill their dream. 5ike car loan& educational loan& tra%el loan
etc
:= L5DI5G 4/LICIS /9 DU+C3-B#5GL# B#5 L+D
A loan #olic* 2i%es loan officers& relationshi# mana2ers and the BankQs mana2ement s#ecific
2uidelines in makin2 indi%idual loan decisions and in sha#in2 the BankQs o%erall loan
#ortfolio. (ne of most im#ortant 3a*s a Bank can make sure its loans meet re2ulator*
standard and are #rofita$le is to esta$lish a 3ritten loan #olic*. Dutch-Ban2la Bank 5td. also
has a 2ood loan #olic* and the most im#ortant elements of the #olic* arc stated $elo3:
A 2oal statement for the BankQs loan #ortfolio
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A statement of 4ualit* standards a##lica$le to all loans.
A statement of the #referred u##er limit for total loans outstandin2
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Ste-8
If Ban2ladesh Bank sends #ositi%e ?IB re#ort on that #articular $orro3er and if the Bank
thinks that the #ros#ecti%e $orro3er 3ill $e a 2ood one& then the $ank 3ill scrutini/e the
documents. e4uired documents are:
In case of cor#orate client& financial documents of the com#an* for the last three to
fi%e *ears. If the com#an* is a ne3 one& #ro8ected financial data for the same
duration is re4uired. Personal net 3orth of the $orro3er
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Ste->
'he $ranch starts #rocessin2 the loan at this sta2e. Based on the anal*ses
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After issuin2 the sanction ad%ice& the $ank 3ill collect necessar* char2e documents.
?har2e documents %ar* on the $asis of t*#es of facilit*& t*#es of collateral.
Ste-67
Ginall* loan is dis$ursed $* the $ranch throu2h a loan account in the name of the $orro3er
and monitorin2 of the loan starts formall*.
+here must (e a deth study on the folloHing oints*
"hen the loan is to be given#
Ho3 the loan is to $e 2i%enO
Chat ma* ha##en after dis$ursement of the loanO
0enerall* 3hat ha##ens
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Caacity*'he customer re4uestin2 credit must ha%e the authorit* to re4uest such and
the le2al standin2 to si2n a $indin2 loan a2reement.
Cash*'he $orro3er should ha%e the a$ilit* to 2enerate enou2h cash flo3 to re#a* the
loan. 'his cash flo3 can $e 2enerated from sales or income from the sales or income&
from the sale of li4uidation of assets or funds raised throu2h de$t or e4uit* securities.
Collateral*'he $orro3er must #ossess ade4uate net 3orth or enou2h 4ualit* assets
to #ro%ide ade4uate su##ort for the loan. 'he %alue of the collateral securit* must
co%er the loan e7#osure.
Conditions*'he recent trend of $orro3erQs line of 3ork or industr* must $e taken into
considerations $* the lender.
Control*'he lender should $e careful a$out 3hether chan2es in la3 and re2ulations
could ad%ersel* affect the $orro3er and 3hether loan re4uest meets the BankQs and
re2ulator* authoritiesQ standards for loan 4ualit*.
:>: Collecting CIB !eort from Bangladesh Bank
After recei%in2 the a##lication for credit line& Bank sends a letter to Ban2ladesh Bank for
o$tainin2 a re#ort from there. 'his re#ort is called ?IB
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#resented in a credit a##lication that ori2inates from the elationshi# Mana2er& and is
recommended $* Branch ?redit ?ommittee > !isk Grading
All Banks should ado#t a credit risk 2radin2 s*stem. 'he s*stem should define the risk #rofile
of $orro3erQs to ensure that account mana2ement& structure and #ricin2 are commensurate 3ith
the risk in%ol%ed. isk 2radin2 is a ke* measurement of a BankQs asset 4ualit*& and as such& it is
essential that 2radin2 is a ro$ust #rocess. All facilities should $e assi2ned a risk 2rade. Chere
deterioration in risk is noted& the isk 0rade assi2ned to a $orro3er and its facilities should $e
immediatel* chan2ed. Borro3er isk 0rades should $e clearl* stated on ?redit A##lications.
:>? 4ro,ect #raisal
It is the #re-in%estment anal*sis done $* the officer $efore a##ro%al of the #ro8ect. Pro8ect
a##raisal in the $ankin2 sector is needed for the follo3in2 reasons:
1. 'o 8ustif* the soundness of an in%estment
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. 'o ensure re#a*ment of $ank finance
. 'o achie%e or2ani/ational 2oals
9. 'o recommend if the #ro8ect is not desi2ned #ro#erl*
:>@ 3ead /ffice #roval
'he res#ecti%e officer of Head (ffice a##raises the #ro8ect $* #re#arin2 a summar* named
'o# Sheet or 67ecuti%e Summar*. 'hen he sends it to the Head (ffice ?redit
?ommittee
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9ig*
Loan
araisal and aroval rocess:>66 Documentation of loans and advances
In s#ite of the fact that $anker lends credit to a $orro3er after in4uirin2 a$out the character&
ca#acit* and ca#ital of the $orro3er& he must o$tain #ro#er documents e7ecuted from the
$orro3er to #rotect him a2ainst 3illful defaults. Moreo%er& 3hen mone* is lent a2ainst some
securit* of some assets& the document must $e e7ecuted in order to 2i%e the $anker a le2al
and $indin2 char2e a2ainst those assets. Documents contain the #recise terms of 2rantin2
loans and the* ser%e as im#ortant e%idence in the la3 courts if the circumstances so desire.
'hat is 3h* all a##ro%al #rocedure and #ro#er documentation shall $e com#leted $efore the
dis$ursement of the facilities. 'he documents for loans and ad%ances can $e classified into
t3o cate2ories& namel* ?har2e documents > Securit* documents.
:>67 Dis(ursement
After %erif*in2 all the documents the $ranch dis$urses the loan to the $orro3er. A loan
re#a*ment schedule is also #re#ared $* the $ank and 2i%en to the $orro3er.
:>68 9olloH-u
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After the dis$ursement of the loan $ank officials time to time monitor the loan $* #h*sical
o$ser%ation of the acti%ities of the #art*. It is done in the follo3in2 manner.
!onstant su$ervision
Corkin2 ca#ital assessment
Stock re#ort anal*sis.
:>6: Loan classifications
1.Unclassified*e#a*ment is re2ular
. Su(standard* e#a*ment is irre2ular or sto##ed $ut has reasona$le #ros#ect ofim#ro%ement.
.Dou(tful De(t*)nlikel* to $e re#aid $ut s#ecial collection efforts ma* result in #artialreco%er*.
. BadEloss*Fer* little chance of reco%er*.
:>6= Credit Monitoring
Monitorin2 is a #rocess of takin2 case of loan cases starts from the selection of the $orro3er
and remains li%e throu2hout the life of a loan. 'o minimi/e credit losses& monitorin2
#rocedures and s*stems should $e in #laces that #ro%ide an earl* indication of thedeterioratin2 financial health of a $orro3er. At a minimum& s*stems should $e in #lace to
re#ort the follo3in2 e7ce#tions to rele%ant e7ecuti%es in ?M and M team:
Past due $rinci$al or interest $ayments% $ast due trade bills%
account e&cesses% and$reach of loan co%enantsO 5oan terms and conditions are monitored& financial statements are recei%ed on
a re2ular $asis& and an* co%enant $reaches or e7ce#tions are referred to ?M
and the M team for timel* follo3-u#. 'imel* correcti%e action is taken to address findin2s of an* internal& e7ternal
or re2ulator ins#ectionaudit. All $orro3er relationshi#sloan facilities are re%ie3ed and a##ro%ed throu2h
the su$mission of a ?redit A##lication at least annuall*. '3o #ossi$le
solutions to minimi/e the credit loss:
:>6< arly #lert 4rocess
Des#ite a #rudent credit a##ro%al #rocess& loans ma* still $ecome trou$led. 'herefore& it is
essential that earl* identification and #rom#t re#ortin2 of deterioratin2 credit si2ns $e done to
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ensure s3ift action to #rotect the BankQs interest.
:>6> Credit !ecovery
?ommercial Banks sanction loan to different cate2ories of $orro3ers for %arious #ur#oses.
Before sanctionin2 of loans and ad%ances follo3 u#
is a##lied and #ro#er treatment is 2i%en as and 3hen #ro$lem arises. 'he )Qs #rimar*
functions are:
Determine Account Action Planeco%er* Strate2*
Pursue all o#tions to ma7imi/e reco%er*& includin2 #lacin2 customers into
recei%ershi# or li4uidation as a##ro#riate. 6nsure ade4uate and timel* loan loss #ro%isions arc made $ased on actual and
e7#ected losses. e2ular re%ie3 of 2rade or 3orse accounts.
'he loan classification #rocedure for all t*#es of loan is 2o%erned $* the 2uidelines
contained in BPD ?ircular no 1 dated !.1., issued $* Ban2ladesh Bank and
su$se4uentl* re%ised #artiall* throu2h BPD ?ircular no and 1! dated 19.!".!!!&
Accordin2 to this circular if an* $orro3er fails to re#a* his amount or installment 3ithin the
follo3in2 time #eriod then it 3ill fall under the follo3in2 classification status.
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=6 !IS
V isk is the #ro$a$ilit* that the reali/ed return 3ould $e different from the
antici#atede7#ected return on in%estment.
V isk is a measure of likelihood of a $ad financial outcome.
V All other thin2s $ein2 e4ual risk 3ill $e a%oided.
V All other thin2s are ho3e%er not e4ual and that a reduction in risk is accom#anied $* a
reduction in e7#ected return.
V 'he uncertainties associated 3ith risk elements im#act the net cash flo3 of an*
$usiness or in%estment. )nder the im#act of uncertainties& %ariations in net cash flo3
take #lace. 'his could $e fa%ora$le or un-fa%ora$le. 'he un-fa%ora$le im#act is QISKQ of
the $usiness.
=7 !ISS I5 B#5I5G BUSI5SS
Bankin2 $usiness is $roadl* 2rou#ed under follo3in2 ma8or heads from isk
Mana2ement #oint of %ie3:
1. 'he Bankin2 Book
. 'he 'radin2 Book
. (ff-Balance-sheet 67#osures
=76 Business !isk
Business isk is concerned 3ith 3hether the $orro3in2 com#an* 3ould fail to 2enerate
sufficient cash out of $usiness to re#a* the loan. Business isk& the main com#onent of
lendin2 risk& consists of the Industr* isk and the ?om#an* isk.
A.Industry !isk: Due to some e7ternal reasons a $usiness ma* fail and the risk& 3hich
arri%es from e7ternal reasons of the $usiness& is called industr* risk. It has t3o
com#onents:
1=Suly risk: It indicates the risk of failure of the $usiness due to disru#tion in
the su##l* of in#uts resultin2 from their #rice& 4uantit* or 4ualit*. It is difficult to o$tain
ri2ht 4ualit* of su##lies& 3hen it is difficult to o$tain re4uired 4ualit* of ra3 materials
and 3hen there is a shorta2e of necessar* skilled la$or.
7' Sales risk: It is another com#onent of industr* risk. Chen the $usiness fails for
disru#tion in sales& this t*#e of risk 3ould 2enerate. Sales ma* $e disru#ted due to
chan2es in market si/e& increased com#etition& chan2es in re2ulations& losin2 of a sin2le
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lar2e customer etc.
B.Comany !isk: 6ach and e%er* com#an* holds a #osition 3ithin an industr*. 'his
#osition is %er* much com#etiti%e. Due to 3eakness in the com#an*Qs #osition in its
industr*& a com#an* ma* fail and the risk of failure is called com#an* #osition risk. It
de#ends on com#an* #erformance.
=77 Management risk:
If the mana2ement of a com#an* fails to e7#loit the com#an*Qs #osition effecti%el*& the
com#an* can fail to and this risk of failure is called mana2ement risk.
=78 Security !isk*
Securit* isk is the risk that the reali/ed %alue of the securit* does not co%er the e7#osure of
loan. 67#osure means #rinci#al #lus outstandin2 interest. Securit* risk can $e di%ided into t3o
#arts.
=8 !IS M#5#GM5+ 4!/CSS
'( ID6N'IG '( M6AS)6
'( M(DIG
'( MANA06
'( M(NI'(
=: !IS M#5#GM5+
?redit risk& arises from the $ankQs dealin2s 3ith or lendin2 to cor#orate& indi%iduals& and other
$anks or financial institutions. ?redit risk mana2ement needs to $e a ro$ust #rocess that
ena$les $anks to #roacti%el* mana2e loan #ortfolios in order to minimi/e losses and earn an
acce#ta$le le%el of return for shareholders. ?entral to this is a com#rehensi%e I' s*stem&
3hich should ha%e the a$ilit* to ca#ture all ke* customer data& risk mana2ement and
transaction information includin2 trade > Gore7. 0i%en the fast chan2in2& d*namic 2lo$al
econom* and the increasin2 #ressure of 2lo$ali/ation& li$erali/ation& consolidation and dis-
intermediation& it is essential that DBB5 ha%e a ro$ust credit risk mana2ement #olicies and
#rocedures that arc sensiti%e and res#onsi%e to these chan2es. 'he #ur#ose of this document is
to #ro%ide directional 2uidelines that 3ill im#ro%e the risk mana2ement culture& esta$lish
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e* management to assess their ability and integrity vie* the security 'rom your o*n im$ressions o'
Analyze
Pre$are )nancial s$readsheet
+naly,e s$readsheet
-atio
Pre$are su$$lementary
!om$lete lending ris. analysis 'orm
General Banking #ctivities & Credit Management of
Dutch-Bangla Bank Limited
minimum standards for se2re2ation of duties and res#onsi$ilities& and assist in the on2oin2
im#ro%ement of our BankQs #erformances. ?redit risk mana2ement is of utmost im#ortance&
and as such& #olicies and #rocedures should $e endorsed and strictl* enforced.
== L5DI5G !IS #5#L2SIS %L!#'
(ne of the im#ortant functions of an* $ank is considered to $e lendin2. 'his is the main
source of income for the $ank. 'he modem conce#t of lendin2 has shifted from the 9
securit*-oriented a##roach to $usiness %ia$ilit* one. 'he em#hasis is 2i%en on the likelihood
of re#a*ment& $usiness %ia$ilit*& mana2ement com#etence and mana2ement inte2rit* of the
#ro#osed de$tor. As the #re%ailin2 le2al s*stem of the countr* often fa%ors the $orro3er $*
makin2 it difficult for the Bank to foreclose on collateral& the ultimate securit* of the Bank is
the ?ommercial success of the $orro3er. Ade4uate em#hasis of $usiness risk is more im#ortant
than anal*sis of securit* risk.
=< C!DI+ #SSSSM5+ #5D SLC+I/5 /9 B/!!/!
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?redit assessment hel#s the $anker to ensure selection of ri2ht t*#e of loan
#ro#osals#ro8ects%enturesenter#rise and ri2ht t*#e of $orro3er. Gor selectin2 the $orro3er
securit* should not the onl* thin2 to $e relied u#on. So res#onsi$ilities of the $ankers to
in%esti2ate the client from different %ie3 #oint i.e. the stren2th and 3eakness of the client so
that the client 3ill $e a$le to re#a* the $ank loan as re#a*ment schedule 3ith #rofit.
?redit risk assessment should $e conducted #rior to the 2rantin2 of loans& and at least annuall*
thereafter for all facilities. 'he result of this assessment should $e #resented in a credit
a##lication that ori2inates from the elationshi# Mana2er
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anal*sis should address the 4ualit* and sustaina$ilit* of earnin2s& cash flo3 and the
stren2th of the $orro3erQs $alance sheet. S#ecificall*& cash flo3& le%era2e and
#rofita$ilit* must $e anal*/ed.
4ro,ected 9inancial 4erformance*Chere term facilities
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assessed.
5ame Lending*?redit #ro#osals should not $e undul* influenced $* an o%er reliance
on the s#onsorin2 #rinci#alQs re#utation& re#orted inde#endent means& or their#ercei%e 3illin2ness to in8ect funds into %arious $usiness enter#rises in case of need.
'hese situations should $e discoura2ed and treated 3ith 2reat caution. ather& credit
#ro#osals and the 2rantin2 of loans should $e $ased on sound fundamentals&
su##orted $* a thorou2h financial and risk anal*sis. Gacilities 3ill onl* $e #ro%ided
after anal*sis of the risks associated 3ith the counter #arties. 'here are numerous risks
attached to e%er* transactionrelationshi# $ut there is a need for certain fundamental
risk as#ects to $e considered for e%er* relationshi#. ?ertain of these risks ha%e $een
identified 3hich 3ill $e re4uired to $e commented u#on on a mandator* $asis.
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C3#4+!- SI0
!C/MM5D#+I/5 & C/5CLUSI/5
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condition.
'he ser%ice of DBB5 is satisfactor*.
Modern technical e4ui#ment such as com#uter is sufficient in 2eneral $ankin2
de#artment.
5ocker ser%ice facilit* is much secured $ecause the* take an e7tra care for this ser%ice.
?har2es on %arious ser%ices are so com#etiti%e.
Interest rate #ro%ided for de#osit A? is attracti%e.
DBB5 local remittance $usiness is moderate $ecause em#lo*ees are train u# in usin2
technolo2*.
Uualit* of mone* transfer facilities is Satisfactor*
In addition& I ha%e identified some sort of information $* com#arin2 DBB5 3ith
others $ank.
'o a%oid e7cessi%e 4uer* its time to introduce call center for DBB5 3hich #ro%ide 9
hour ser%ice to clients.
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In Account& section 3here customer 2ets the o%erall im#ression a$out $ankin2 ser%ices
so as a Banker its %er* much im#ortant to ensure the 4ualit* ser%ices and this 3a*
also 2ood3ill and $rand ima2e ensured.
Ser%ices are the heart for $usiness $* #ro%idin2 $etter ser%ices 3ithin limited time
frame the customer 2ain lo*alt* to3ards DBB5.
Its $etter to introduce a sim#le A? o#enin2 form for all t*#e of A? and also
im#ortant to find out sim#le 3a* of re4uired documentation su$mission.
Its time to 2o 3ith inno%ati%e 3a* si2nature %erification takin2 so much time and in
case of not matchin2 one 3ould not $e a$le to 2et mone* so introduce the SSN or
fin2er #rint scan conce#t that easil* identif* the client and it 3ould $e hel#ful to run
ser%ice smoothl*.
Introduction of an Inno%ati%e De#osit #roduct 3ith a Suita$le name 2ain ad%anta2e to
$rin2 #eo#le in Bankin2.
De#osit Product for s#ecific tar2et 2rou# such as for 67ecuti%es& 'eachin2
Professional& la3*er& Doctor& 0arments Corker etc. 3ith s#eciali/ation feature need to
introduce to $rin2 them into DBB5 arena.
DB5 on the $asis different ser%ices and char2es
Chen a #erson o#en& closin2 a sa%in2& and current account A? a& heshe need to
de#osit a minimum $alance. If clients 3ant& o#en and closin2 a sa%in2 and current A?
in DBB5& it maintain lo3er amount that $elon2s to a #ositi%e si2n.
DBB5 maintenance char2e on sa%in2 A? is lo3er in com#are to others $anks.
6%er* $anks GD interest rate is more or less flat $ecause it is set $* the central $ank.
DBB5 A'M
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'heir A'M $ooth net3ork should $e im#ro%ed other3ise customer can easil*
s3itch to another $ank.
Ser%ices are the heart for $usiness $* #ro%idin2 $etter ser%ices 3ithin limited
time frame the customer 2ain lo*alt* to3ards DBB5.
Its time to 2o 3ith inno%ati%e 3a* si2nature %erification takin2 so much time
and in case of not matchin2 one 3ould not $e a$le to 2et mone* so introduce the
SSN or fin2er #rint scan conce#t that easil* identif* the client and it 3ould $e
hel#ful to run ser%ice smoothl*.
Introduction of an Inno%ati%e De#osit #roduct 3ith a Suita$le name 2ain
ad%anta2e to $rin2 #eo#le in Bankin2.
Gle7i$ilit* is %er* im#ortant in case of non-#a*ment of de#osit for one monthO
0i%e a chance to client for fill it u# in the ne7t month thats 3a* client 2ain
#ositi%e im#ression to Bank. Some re4uirement rela7 for *our client #ur#ose $ut
must $e ensure that this rela7 is not cause a $i2 affect to Bank.
A'M ser%ices should $e im#ro%ed. If the $ad ser%ice continue than the cli