Internship Report On SME Activities of BRAC Bank Limited

INTERNSHIP REPORT ON SME Activities OF BRAC BANK LIMITED
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Letter o Tr!nsmitt!"
July 25, 2010 Md. Lutfor Rahman Associate Professor Department of usiness Administration !orthern "ni#ersity an$ladesh Dhanmondi, Dha%a. &u'(ect) Submission of Internship Report. Dear &ir, *his is my pleasure to present my internship report entitled Internship Report On SME Activities of BRAC Bank Limited. + ha#e conducted my internship pro$ram in RA, an% Limited, -inance Di#ision , Anne. *o/er 0, 1ulshan21, Dha%a 3 1212, under your close super#ision. + 'elie#e that %no/led$e and e.perience + ha#e $athered durin$ the internship period /ill 'e helpful in my future professional life. + /ill 'e $rateful to you if you accept the report. + /ill 'e a#aila'le for defense on this report any time. 4our support in this re$ard /ill 'e hi$hly appreciated. *han%in$ 4ou. &incerely yours 55555555. 6ictoria Jany Ro7ario +D !o) A 080102119
Ackno!"ed#ement
All praises to almi$hty 1od /ho has created me and has $i#en me opportunities and stren$th to /or% /ith people. *his internship report mi$ht ne#er ha#e 'een completed /ithout the necessary practical %no/led$e, assistance of many 'oo%s, articles, /e'sites, and primary data. +t enhanced my %no/led$e on &M: acti#ities as /ell as 'an%in$ 'usiness. *han%s to all those persons, /ho ha#e assisted me, pro#idin$ me co2operation, 'oo%s and articles. + /ould li%e to e.press my special $ratitude to Md. Lutfor Rahman, Associste professor, Department of Administration, !orthern "ni#ersity usiness an$ladesh, for his super#ision, co2operation and ad#ises. L ; RA, an% Limited<
+ /as placed in &M: Department, -inance Di#ision of RA, an% Limited to /or% as an intern from March 1st 2011 to May 01th 2010. *he mem'ers of mana$ement /ere #ery co2operati#e and helpful. *hey helped me throu$h pro#idin$ #arious data, $uidance and direction. + am $rateful to Mr. eno7eer Ahmed, A6P = &enior Mana$er, &M:, -inance Di#ision, of RA, an% Limited for his cooperation and necessary support.-inally + /ant to e.press my special than%s to Jasim Ahmed, Actin$ Mana$er, for $i#in$ his #alua'le time and ade>uate information. + am also $rateful to all other employees of &M:,-inance Department for their #alua'le support and assistance for helpin$ me to prepare this report. +t /as my pri#ile$e and + am truly honored /or%in$ /ith such a /onderful team.
$ab"e Of Contents
Content %o Chapter ' '.' '.1 '.0 '.2 '.3 Chapter 1 1.' 1.1 1.0 Or#ani*ationa" &rofi"e 1.2 1.3 Chapter 0 0.' 0.1 0.0 0.0 0.2 0.3 0.4/0.7 0.'8 0.''/0.'0 0.'2 Chapter 2 2.' 2.1 2.0 2.2 Importance of SME SME Bankin# in BRAC Bank Ltd -efinition of SME SME .istor) of BRAC Bank Corporate mission+ vision and va"ues $he Brand promise ,unctiona" -epartment and !in#s Back#round of BRAC Bank Shareho"din# Structure of BRAC Bank Corporate Chronic"e Information 6 7 ''/05 '3 '3 '5 '7 10 12 13 08 01 05 06/20 06 07 2' Methodo"o#) Limitation of the Report Scope of the stud) Ori#in of the report Ob(ective Introduction Content %ame ' ' 1 1 0 2/'' 2 4 5 &a#e %o '/0
2.3 Chapter 3 Chapter 4 4.' 4.1/4.0
SME products SME %et!ork covera#e .i#h"i#hts of SME Bankin# -ivision Correspondents Banks+ Obstac"e Se"ection of potentia" enterprise for SME SME "oan process f"o! C"osin# procedure of SME "oan SME !ith Modern Marketin# Concept SME re"ates !ith modern marketin# concept $ar#et Customer $ar#et market Market &ositionin# -eve"opin# Marketin# Mi9 S:O$ Ana")sis ,indin#s+ Conc"usion and Recommendation ,indin#s Conc"usion and Recommendation
21 20 24/25 25 27 27
E9ecutive Summer)
*he internship report is 'ased on the three month lon$ internship pro$ram that + ha#e successfully completed at RA, an% Limited under &M:, -inance Di#ision from 01.00.2011 to 01.05.2011 as a re>uirement of my !orthern "ni#ersity A pro$ram on Department of usiness Administration, an$ladesh. As 'ein$ completely ne/ to the practical, corporate /orld
settin$, e#ery hour spent in the &M:, -inance Department $a#e me some amount of e.perience all the time all of /hich cannot 'e e.plained in /ords. ut ne#ertheless, + am #ery hopeful a'out /hat + ha#e $ained from this practical arena /ill 'e useful for my further career de#elopment. +n its ?@r$ani7ational ProfileA section, the 'ac%$round of the or$ani7ation, its #ision and mission, the mana$ement structure, functional departments of the 'an%, /in$s of the 'an% ha#e 'een discussed. +n its &M: 'an%in$ section, + ha#e tried to focus 2/hat &M: stands for, /hat is the history of RA, an% &M: history, /hy RA, an% put importance on its &M: an%in$ more than other 'an%in$ acti#ities, &M:Bs product line /ith their features, &M: net/or% co#era$e throu$hout the country, ho/ &M: department /or%s for their clients and meet their demands. +n chapter 9, + ha#e tried to relate my academical %no/led$e that is the modern Mar%etin$ ,oncept /ith an%Bs &M: functions. +n this part ho/ RA, 'an% does their mar%et se$ment, RA, 'an% are ho/ they reach their tar$et customer, /hat are the 'asis for their de#elopin$ mar%etin$ mi. etc. +n chapter 5, /hat are the stren$th, /ea%ness, opportunities and threats for discussed 'riefly. +n chapter C, findin$s a'out the tas% + ha#e 'een assi$ned at RA, 'an% are $i#en in 'rief. + ha#e tried to add some of my recommendations on RA, 'an%Bs &M: acti#ities. With limited knowledge and experience I have tried my best to make this report as much understandable as possible and translate my experience into a documentary format. The various boundaries to process improvement and
maintaining ethical standards in a corporate environment have also been experienced. But even so, how those policies and practices are In- ine with the corporate strategy are discussed in this report. efore dra/in$ my conclusion 'ased on this report it may 'e noted that the report /as prepared in a #ery short period of time and there is a lac%in$ in collection of data. ut still the report may 'e useful for desi$nin$ any further study to e#aluate the &M: acti#ities of the 'an%..
Internship Report On SME Activities of BRAC Bank Ltd
Student -ec"aration
+ here'y &olemnly declare that the report titled ?&M: Acti#ities of RA, an% L*D.A has 'een prepared = completed 'y me for the partial re>uirement of any other purposes. A = has not 'een su'mitted for
&i$nature
.................................... 6ictoria Jany Ro7ario +D !o) A 080102119 Ma(or in Mar%etin$ Department of usiness Administration !orthern "ni#ersity an$ladesh.
Certification
*his is to certify that, 6ictoria Jany Ro7ario is a student of usiness Administration Department !orthern "ni#ersity an$ladesh 'earin$ +D) report titled ?&M: Acti#ities of completion of A pro$ram. RA, A 080102119. she has completed her internship an% L*D.A for the partial re>uirement for the
*he report is accepted in >uality form. +t is accepted to 'e presented in the internship #i#a #oice + /ish her e#ery success in life.
..................................... Md. Lutfor Rahman Associate Professor Department of usiness Administration !orthern "ni#ersity an$ladesh
.................................... ,ommittee ,hairman
'.8 Introduction
RA, an% Limited, /ith institutional shareholdin$s 'y RA,, +nternational -inance ,orporation ;+-,< and &horecap +nternational, started its (ourney in 2001 and in (ust 10 years pro#ed to countryBs fastest $ro/in$ 'an%. *he free, enli$htened an$ladesh. RA, an% operates under a Ddou'le 'ottom lineD a$enda /here profit and social responsi'ility $oes hand in hand as it stri#es to/ards a po#erty2 an% Limited is a scheduled commercial 'an% in an$ladesh. +t esta'lished under the an%in$ ,ompanies Act, 1EE1 and its operation started on
July 9, 2001 /ith a #ision to 'e the mar%et leader throu$h pro#idin$ all sorts support to people in term of promotin$ corporate and small entrepreneurs and indi#iduals all o#er the an$ladesh. *he 'an% consist of ma(or di#isions named 1< ,orporate 'an%in$, 2< Retail 'an%in$, 0< *reasury, 9< &mall = Medium :nterprise ;&M:<. At present the customers from the #ery 'e$innin$ of its starts. RA, an%, for the first time amon$ local commercial 'an%s, starts pro#idin$ loan facilities to small and medium tradin$, manufacturin$ and ser#ice oriented enterprises all o#er the country. an% operatin$ its 'usiness 'y CE 'ranches. RA, an% is the first local commercial 'an%s that pro#in$ online 'an%in$ ser#ice to its
'.' Ori#in of the Report

As a part of the +nternship Pro$ram of achelor of usiness Administration course re>uirement, + ha#e 'een aassi$ned for preparin$ a report on the acti#ities that + am currently doin$ at RA, an% Limited ; RA, -inance Di#ision. L< for the period of 12 /ee%s started from March 1, 2011 to May 01, 2011. At L<, + ha#e 'een assi$ned in the &M: , -inance Plannin$ = Analysis, an% Limited ;
!." #b$ective
*he 'road o'(ecti#e of this pro(ect) 1. Fo/ RA, A!G Ltd operates &M: 'an%in$ operation around the country thou$h its e.tensi#e net/or%
2. Hhy Mar%et concentration and product di#ersification are considered the main strate$ies for e.pandin$ the &M: 'usiness.
!.".! %pecific #b$ective

*o support the 'road o'(ecti#es 'etter /e ha#e de#eloped some specific o'(ecti#es. *hese are) 1. Fo/ RA, A!G Ltd operates &M: 'an%in$ operation around the country thou$h its L e.tensi#e net/or% I Hhat is the &tructure of &M: di#ision of I Fistory of RA, an% &M: I &M: Product Details I @peration Process of &M: Loan Dis'ursement of e.pandin$ the &M: 'usiness. I Mar%et se$mentation I ases for se$mentin$ consumer mar%et I *ar$et consumer I *ar$et mar%et I Differentiated mar%etin$ I &H@* Analysis L 2. Hhy Mar%et concentration and product di#ersification are considered the main strate$ies for
!.& 'ethodology
*he study /as totally 'ased on primary data and secondary data. As the report has three parts, the or$ani7ation part and (o' part data /as collected from secondary sources 'oo%s, 'rochures, leaflets, files, pu'lished reports and official /e' site of RA, an% Limited. -or &M: related information + too% short inter#ie/ of the &M: Department employees. Apart from this, Annual reports, ma$a7ines, financial flash 'ac% of RA, an% and different &M: related (ournals used as a secondary data.
!.( imitations of the )eport*

*he sources of the report are collected from different des%s, #arious documents of Limited ; helped a lot to mana$e and collect the data = information. RA, an% L<. *hou$h the entire staff mem'er remains 'usy all the time for their des% /or% they ut it /as #ery difficult to collect
information on the client as it is #ery sensiti#e and secret issue for the
an%. :#ery tas% has some
limitations. &o, there ha#e also some limitations of the study. *hese are as follo/s2 %hortage of time period* *his report is /ritten /ithin a shorter period of time since many days ha#e passed durin$ the trainin$ session. &o the time a. constraint of the study hinderin$ the course of #ast area and time for preparin$ a report /it the mentioned period is really difficult. b. Busy working environment* *he officials had some times 'een una'le to c. pro#ide information 'ecause of their hu$e routine /or%. *hat is /hy /e do not $ather #ast %no/led$e a'out the critical issues. d. %ecrecy of 'anagement* *here some information /hich are confidential for collectin$ the data. &o, some data could not 'een collected for confidentiality or secrecy of mana$ement. e. +neven %ample ,istribution* *he sample distri'ution may not 'e f. e#en, there may 'e a ma(ority of people comin$ from a fi.ed ran$e of income le#el.
!.- %cope
*he report has three parts. -irst part is the or$ani7ation part /here + co#ered 'rief a'out the or$ani7ation. &econd part is the (o' part /here + co#ered /hat + did in the office. *hou$h + /or%ed in &M: -inance department 'ut + also co#ered the reconciliation process. +n the third part, this is assi$ned 'y super#isor, &M: Acti#ities of RA, an% Limited. +n this part + co#ered ho/ RA, an% operate &M: 'an%in$ throu$h its e.tensi#e net/or% and /hy mar%et concentration and product di#ersification are considered the main strate$ies for e.pandin$ the &M: 'usiness.
1.'Back#round of BRAC Bank

RA, an% Ltd, a full ser#ice commercial 'an% /ith Local and +nternational RA, an% has 'een stri#in$ to pro#ide
+nstitutionalshareholdin$, is primarily dri#e 'y creatin$ opportunities and pursuin$ mar%et niches not traditionally met 'y con#entional 'an%s. an on2line 'an%in$ platform. *oday, RA, A!G Limited, one of the latest $eneration of commercial 'an%s /hich started its (ourney on the 9th of July 2001 /ith a #ision to 'e the a'solute mar%et leader throu$h pro#idin$ the entire ran$e of 'an%in$ ser#ices suita'le to the needs of modern and dynamic 'an%in$ 'usiness as /ell as to promote 'road 'ased participation in the the fact that an$ladesh economy throu$h the pro#ision of hi$h >uality 'an%in$ ser#ices. *he uni>ue stren$th of RA, an% lies in RA, one of the /orldBs lar$est pri#ate de#elopment or$ani7ation is its %ey shareholder and the 'an%Bs #ision are thus ali$ned /ith those of RA,. *he reason RA, an% is in 'usiness is to 'uild a profita'le and socially responsi'le financial institution focused on mar%ets and 'usinesses /ith $ro/th potential, there'y assistin$ sta%eholders 'uild a ?(ust, enli$htened, healthy, democratic and po#erty free RA, and RA, an$ladeshA. ?'est2in2the2classA ser#ices to its di#erse ran$e of customers spread across the country under
an% fulfills the purpose 'y reachin$ for hi$h standards in doin$ e#erythin$ for their customers, shareholders, associates and communities upon, /hich the future prosperity of their company rests. RA, an%s en#isa$es pro#idin$ mass financin$ 'y increasin$ access to economic an$ladesh /ith a special focus on currently RA, an% is sur#i#in$ in the lar$e
opportunities for all indi#iduals and 'usiness in
under2ser#ed enterprises across the rural2ur'an spectrum 100J inte$rated on2line 'an%in$ ser#ices. RA,
'an%in$ arena throu$h its uni>ue and competiti#e products and it is the only local 'an% pro#idin$
an% Limited consists of four ma(or 'usiness di#isions namely ,orporate
an%in$
Di#ision, Retail
an%in$ Di#ision, &mall and Medium :nterprise ;&M:< and -orei$n *rade =
*reasury. ,orporate Di#ision pro#ides full ran$e of commercial 'an%in$ products and ser#ices to any potential corporate clients includin$ multinationals, lar$e or medium local corporate, !1@s, institutional 'odies. Retail Di#ision offers a /ide array of lucrati#e and competiti#e 'an%in$ products to the indi#idual customers of the 'an%. ,urrently there are si. lendin$ products and a num'er of other attracti#e ne/ products /ill 'e launched shortly. +t also offers different types of term deposit scheme and attracti#e &*D = &a#in$s deposit schemes $i#in$ interest on daily 'alance. RA, an% Limited, hereinafter called L, is a first $ro/in$ third $eneration2scheduled an% 1roup = &hore
commercial 'an% incorporated on 20th May 1EEE as a pu'lic limited company under ,ompanies Act, 1EE9 /ith multinational colla'oration includin$ +-, of *he Horld ,ap. L started its operation on 9th July 2001. *he main sponsor of the 'an% is the RA,. *he usiness, /hich hitherto has remained lar$ely untapped. L 'elie#es, this sector of L
an% is pioneer and focused on pursuin$ une.plored mar%et niches in the &mall and Medium :nterprise the economy can contri'ute the most to the rapid $eneration of employment in an$ladesh. "nit @ffices.
caters the 'an%in$ ser#ices to its rapidly $ro/in$ customers throu$h CE 'ranches and 921 &M:
Shareho"din# Structure of Brac Bank Limited

.s on &!.!"."/!/
!ame of &hareholder RA, MR. -a7le Fsan A'ed Mr. &yed Fumayun Ga'ir Mr. A. &. Mahmud Mr. -aru> A. ,houdhury Mr. Dr. &aleh "ddin Ahmed Mr. Md. Aminul Alam Ms. *amara Fasan A'ed Mr. &hi' !arayan Gairy +nternational -inance ,orporation ;+-,< &hore,Ap +nternational Ltd 1eneral &hareholders *otal
*otal &hares 11818802 2C5 2C5 222 222 2CC 0CC 222 202 1909280 2011K9 100K90K1 2C8CEC00
J of *otal &hare 90.88 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 5.0C 0.KC 50 100.00
Corporate Chronic"e ; Information

)egistered office* !, 0ulshan .venue, 0ulshan-!, ,haka-!"!" 1ompany )egistration 2umber* 1-&334"5"/4"6 of !777 Inauguration of Banking operations* (th 8uly "//! 9irst %': unit office* !st 8anuary "//" %igning with %hore1ap as investor* "7th ,ecember "//& %igning with I91 as investor* 4th 'ay "//( 9irst installation of .T'* &rd .pril "//Issuing of ;referential share* &!st 8anuary "//< %igning with Infosys and &i Infotech for changing Bank=s IT platform* !st .ugust "//3 "(x3 ;hone Banking opening*7th %eptember "//< Initial public offering of shares held in "//< isting with 1%:* "(th 8anuary isting with ,%:* "4th 8anuary "//3 1ommencement of share trading in ,%: and 1%:* &!st 8anuary 1redit 1ard launching* /<th 9ebruary "-// remittance delivery points Introduction of ;robashi Banking* !(th .pril "//3 aunching of Travel related services 5T)%6* "/th 2ovember "//3 ;,B collection via mobile banking* !-th #ctober "//7 aunching of ;robashi Biniyog* (th 'ay "/!/ #ff-%hore Banking launched* "!st 8une "/!/ 1o-branded .T' booth launching with )upali bank imited* "-th %eptember "/!/ aunching of ;lanet 1ard* "&rd #ct "/!/
Corporate <ision
uildin$ a profita'le and socially responsi'le financial institution focused on Mar%et and usiness /ith $ro/th potential, there'y assistin$ RA, and sta%eholders to 'uild a D(ust, enli$htened, healthy, democratic and po#erty free an$ladeshD.
Corporate Mission
&ustained $ro/th in D&mall = Medium :nterpriseD sector ,ontinuous lo/2cost deposit $ro/th /ith controlled $ro/th in retail assets ,orporate Assets to 'e funded throu$h self2lia'ility mo'ili7ation. 1ro/th in assets throu$h syndications and in#estment in faster $ro/in$ sectors ,ontinuous endea#or to increase non2funded income Geep our de't char$es at 2J to maintain a steady profita'le $ro/th Achie#e efficient syner$ies 'et/een the an%Ls 'ranches, &M: unit offices and RA, field offices for deli#ery of Remittance and an%Ls other products and ser#ices Mana$e #arious lines of 'usiness in a fully controlled en#ironment /ith no compromise on ser#ice >uality Geep a di#erse, far flun$ team fully moti#ated and dri#en to/ards materiali7in$ the an%Ls #ision into reality
Core <a"ues
6alue the fact that /e are a mem'er of the RA, family ,reatin$ an honest, open and ena'lin$ en#ironment Fa#e a stron$ customer focus and 'uild relationships 'ased on inte$rity, superior ser#ice and mutual 'enefit &tri#e for profit = sound $ro/th
Hor% as a team to ser#e the 'est interest of our o/ners Relentless in pursuit of 'usiness inno#ation and impro#ement 6alue and respect people and ma%e decisions 'ased on merit
ase reco$nition and re/ard on performance *o 'e responsi'le, trust/orthy and la/2a'idin$ in all that /e do
$he Brand &romise of BRAC Bank L$- =

*he 'rand promise of RA, an% L*D is ?Astha @'icholA. +t is a 'an$le /ord that denotes trust on RA, an% remains the same no matter /hat in terms of >uality ser#ices.
The logo of rac an% has 'een made %eepin$ in mind the $oal of the or$ani7ation, the s>uare structure of the lo$o means solid and stron$, the $olden color in the lo/er portion of the lo$o means the M1olden an$ladesh = her fertile land, *he lue color in the upper portion means Mthe s%y /ith enormous = unlimited opportunityB. *he /hite colored cur#e means M1ro/th and Pro$ressB. Hhite circles in the 'lue color mean the flashin$ sun that $i#es li$ht to e#ery/here.
Mana#ement of Brac Bank=

*he 'oard of directors is the top mana$ement and policy ma%in$ 'ody of RA, an% L*D. Presently the 'oard of directors consists of a chairman and fi#e directors. +t is to 'e noted the mana$in$ director, is also a mem'er of the 'oard. *he directors are appointed from amon$st those /ho ha#e e.periences and sho/n capacity in the field of finance and 'an%in$, trade, commerce, industry etc. *he chief e.ecuti#e officer ;,:@<e.ecutes all the acti#ities under the direction of the 'oard. *he officer and the other line and staff personnel are appointed 'y the 'an%Bs o/n recruitment committee.
$ab"e1.' %ame of the -irectors

!ame Muhammad A ;Rumee< Ali Nua7i Mohammad &hariful Ala !ihad Ga'ir *amara Fasan A'ed &hi' !arayan Gairy Dr. Fafi7 1A &iddi>i Desi$nation ,hairman Director;nominated 'y RA,< +ndependent = Depositor Director Director Director Depositor Director
$ab"e1.1 %ame of Mana#ement Committee

!ame &yed Mahhu'ur Rahman Mohammad Mamdudur Rasid Rais "ddin Ahmad !a'il Mustafi7ur Rahman Dyed -aridul +slam -iro7 Ahmed Ghan Gh/a(i &hariar Mahmoodun !a'i ,ho/dhury *aniyat Garim &hah Alam huiyan Mohammad Rahmat Pasha Mr. !a/ed +>'al Desi$nation Mana$in$ Director = ,:@ Deputy Mana$in$ Director ,ompany &ecretary = Fead of Le$al Re$ulatory = +nternal ,ontrol ,hief ,redit @fficer Fead of &M: an%in$ Fead of Retail an%in$ Fead of ,ash Mana$ement, ,ustodial &er#ices and Pro'ashi an%in$ Fead of ,orporate an%in$ Di#ision Fead of Fuman Resources Fead of @perations and Actin$ Fead of @perational Ris% Mana$ement Fead of *reasury = -inancial +nstitution ,hief *echnolo$y @fficer
M.&ar/ar Ahmed Oeeshan Gin$shu% Fu>
Fead of &pecial Assets Mana$ement ;&AM<2 &M: = Retail an%in$ Fead of ,orporate Affairs
,unctiona" -epartment of BRAC Bank=

*he departments of rac an% can 'e cate$ori7ed into t/o /ays are sho/n in follo/in$ chart)
,unctiona" -eparment of BrAC Bank
Business :in#s
Supportive :in#s
Fuman Resource Di#ision
&M: Di#ision ,orporate Retail Di#ision Pro'ashi an%in$ Di#ision ;-orei$n *rade Di#ision<
-inance Di#ision ,ash Mana$ement = ,ustodial &er#ice ,redit Ris% Mana$ement @perations Di#ision ,ompany &ecretariat Re$ulatory and +nternal ,ontrol @perational Ris% Mana$ement *reasury and -inancial +nstitution +nformation *echnolo$y Di#ision Pro$ram Mana$ement Di#i#sion Research = De#elopment Di#ision &er#ice Nuality Di#ision ,orporate Affairs Di#ision
:in#s of BRAC Bank Ltd=

RA, an% Limited consists of four ma(or 'usiness di#isions) a. ,orporate an%in$ Di#ision '. Retail an%in$ Di#ision c. &mall and Medium :nterprise;&M:< d. -orei$n *rade = *reasury
A.
Corporate Bankin# -ivision=
B).1 Bank=s 1orporate Banking team exists to provide both banking services and a financial partnership with local large and medium corporates, trading houses and $oint ventures. .s the financial partner of choice for the corporate sector, B).1 Bank is distinguished by our*
>uality of service ?alue of innovative solutions evel of trust with our clients 'arket knowledge
Through the team our clients have access to a wide range of financial services including* ,ebt capital :@uity capital #ngoing relation support 9inancial markets
Our Ob(ectives=
To provide wide range of financial services professionally, efficiently and
competitively to achieve pre-eminent position in chosen market. ,iversify revenue stream through product innovation. . Well-diversified credit portfolio, which produces a reliable and consistent return to investment.
Our va"ues= www.AssignmentPoint.com
&er#ices to our customers Nuality in e#erythin$ /e do ,ompetiti#eness and a /ill to /in 1ro/th and de#elopment of our people ,ontinuous producti#ity impro#ement Professionalism and ethics in all our actions 1ro/in$ profit for our sta%eholders
B. Retai" Bankin# -ivision

Retail Di#ision offers a /ide array of lucrati#e and competiti#e 'an%in$ products to the indi#idual customers of the 'an%. +t also offers different types of term deposit scheme and attracti#e &*D =&a#in$s schemes $i#in$ interest on daily 'alance. As a part of total 'an%in$ solution it has introduced an inno#ati#e and one o its %ind Remittance &er#ices under the style and name ?&ecured = :asy Remittance &er#iceA;&:R&<. *he aim of the pro$ram is to introduce easy and secured remittances ser#ices /here'y people /ill 'e comforta'le and secured in remittin$ funds /ithout hassle and delay. "sin$ the country/ide net/or% of RA, comprisin$ more than 11000 field offices the &R& /ill ensure secured and only 29 hour lead time deli#ery of remittances any/here in an$ladesh. C. Sma"" and Medium Enterprise >SME?= &M: is an additional and speciali7ed hori7on of the 'an% /hich ser#es the 'an%Bs special focus on promotin$ 'road 'ased participation 'y caterin$ to the small and medium entrepreneur. *he net/or% of &M: has already 'een esta'lished throu$h the an$ladesh. *he &M: mar%et in an$ladesh is lar$e. RA, an% is a'solute mar%et leader in the num'er of loans $i#en to small = medium enterprises throu$hout an$ladesh. *he an% dis'ursed almost D* 1999C8 million since inception till 2010, of /hich dis'ursed D* .0259E million in 2010.
-. ,orei#n $rade ; $reasur) -ivision= www.AssignmentPoint.com
*reasury Di#ision is one of the ma(or di#isions of RA, an% . +t deals /ith money mar%et. All treasury related products are processed in conformity /ith the -inance = other applica'le policies. *reasury @perations calculates in#estment fi$ure, prepares the auction application, for/ards the application to an$ladesh an% for id and *reasury @perations maintains and reconciles all accounts /ith forei$n and local 'an%s. Ma(or Responsibi"ities= +t deals /ith Money Mar%et +t deals /ith -orei$n :.chan$ed Department RA, an% is $radually $ro/in$ up to esta'lish itself in the an%in$ arena of an$ladesh to 'e mar%et leader in terms of ser#ice >uality and a trusted partner in the de#elopment of an$ladesh. an%Bs @perational, *radin$, and Money mar%et, *erm placin$, Deal settlement, ,ommercial positionin$ %eepin$, *reasury, ,redit,
0.' -efinition of SME &M: stands for &mall and Medium :nterprise. *he ?Policy &trate$ies for De#elopment of &mall = Medium :nterprises ;&M:< 2005A pu'lished 'y &M: ,ell of the Ministry of +ndustries cate$ori7es &mall and Medium :nterprises usin$ the follo/in$ definitions) a. Manufacturin# enterprise &mall :nterprise) an enterprise should 'e treated as small if, in current mar%et prices, the replacement cost of plant, machinery and other partsPcomponents, fi.tures, support utility, and associated technical ser#ices 'y /ay of capitali7ed costs ;of turn2%ey consultancy ser#ices, for e.ample<, etc. e.cludin$ land and 'uildin$, /ere to 'e up to *%. 15 million. Medium e:nterprise) an enterprise should 'e treated as medium if, in current mar%et prices, the replacement cost of plant, machinery and other partsPcomponents, fi.tures, support utility, and associated technical ser#ices ; such as turn2%ey consultancy<, etc. e.cludin$ land and 'uildin$, /ere to 'e up to *%.100 million. b.%on/Manufacturin# activities >such as tradin# or other services?. &mall enterprise) an enterprise should 'e treated as small if it has less than 25/or%ers, in full2 time e>ui#alentsQ Medium enterprise) an enterprise should 'e treated as medium fi it has 'et/een 25 and 100 employees. 0.1 SME .istor) of BRAC Bank Ltd= Fe /ants to see po#erty 'anished fore#er. *his has 'een his sin$le2minded pursuit in life. :#er since a de#astatin$ cycle /rea%ed ha#oc on the li#es of the people and property in the coastal re$ions of pre2independence an$ladesh 1E80, e#erythin$ chan$ed for a youn$ chartered accountant. *he youn$ man /as so mo#ed 'y the death and destruction that he, alon$ /ith some friends, dedicated to set up F:LP to carry out relief and reha'ilitation efforts. Later after the independence of an$ladesh the youn$ man sold his flat in London and decided to set up a relief and reha'ilitation center in the /ar ra#a$ed an$ladesh. Fe ne#er loo%ed 'ac%. Fe is &ir -a7le Fasan A'ed, the founder and chairperson of RA,, the /orldBs lar$est !1@,
ar$ua'ly in terms of si7e and operation.
RA, has 'een /or%in$ relentlessly to reali7e the
hidden potential of man%ind, especially the ones /ho are most depri#ed of opportunities. +t is this same #ision that moti#ated him to come up /ith a 'an% that could reali7e the untapped potentials of this country. *raditionally 'an%in$ in an$ladesh has mainly addressed the mid to lar$e si7ed 'usinesses or the professionals. Hhen &ir -a7le Fasan A'ed esta'lished RA, an% he did it /ith the $oal to ser#e the hi$hly moti#ated $roup of entrepreneurs /ho /anted to 'rea% out of the #icious cycle of po#erty and ta%e control of their o/n future. He call them the ?Missin$ MiddleA. Fis lon$ cherished dream of a#ailin$ >uality finance ser#ices to these small to medium 'usinesses finally come to reality. RA, an% proud to 'e the pioneerin$ and lar$est &M: 'an% in an$ladesh, dischar$in$ o#er 10,000 core ta%a in &M: loan and helpin$ fulfillment of more than 25C,000 dreams that chan$e hundreds and thousands of li#es e#ery day. &M: 'an%in$ di#ision of RA, an% Limited has successfully made a mar% in creatin$
platform for small and medium entrepreneurs in ?Access to -inanceA, the %ey to the prime o'stacle to/ards $ro/th of &M:s. &ince inception RA, an% upholds the motto to finance the ?'issing 'iddleA the underser#ed mar%et se$ment of &M:s. 4ears of mar%et %no/led$e and understandin$, committed resources, country/ide co#era$e and /ell ali$ned strate$ies ha#e made the 'an% an e.pert in &M: financin$ and the 'an% has successfully de#eloped an e.amined and successfully model in &M: financin$ in an$ladesh. *he stren$ths of RA, an%Bs &M: an%in$ Di#ision 'ehind the success of $ro/th are as follo/s) Dynamic human resource ,ountry distri'ution net/or% and co#era$e ,ontinuous de#elopment in creatin$ inno#ati#e products "ni>ue loan appro#al process and monitorin$ Ro'ust ris% mana$ement system
*he 'an% has incorporated dou'le 'ottom line approach in its operation 2 1< Ma%in$ profit 'y mo'ili7in$ fund from ur'an to rural areas.
2< Performin$ social responsi'ility 'y creatin$ an entrepreneurial class. Alon$ /ith &mall = Medium :nterprise financin$, &M: 'an%in$ di#ision is also acti#ely /or%in$ in creatin$ a/areness and impartin$ %no/led$e to &M:s a'out financial record %eepin$, dealin$ /ith modern 'an%s and industry 'est practices in &M: operation. +n an attempt to ensure customer a/areness and to stren$then the relationship /ith customers, &M: 'an%in$ di#ision arran$ed informati#e campai$ns and road sho/s for &M:s located across the country. &." Importance of %': *he main focus of RA, an% is to de#elop human and economic position of a country. +ts function is not limited only to pro#idin$ and reco#erin$ of loan 'ut also try to de#elop the economy of a country. &o reasons for this pro$ram from the #ie/point of L)
:mployment 1eneration
;rofit 'aking :conomic ,evelopment
SME
:ncourage 'anufacturing %upport %mall :nterprise
%pread the :xperience
&.".! %upport %mall :nterprise *he small enterprise, /hich re>uires D* 2 to 00 lac%s loan, 'ut they ha#e no easy access to the 'an%sPfinancial institutions. -or e.ample) +n case of Anonno loan, an amount of 0 to K lac%s is pro#ided /ithout any %ind of mort$a$e.
&."." :conomic ,evelopment :conomic de#elopment of a country lar$ely depends on the small and medium seal enterprises. &uch as, if /e analy7e the de#elopment history of Japan, the de#elopment of small = medium scale enterprises e.pedite the de#elopment of that country. &.".& :mployment 0eneration *he 'an% $earin$ employment opportunities 'y t/o /ays) -irstly, 'y pro#idin$ loan to the small enterprises e.pandin$, these 'usinesses re>uire more /or%ers. &econdly, &mall = Medium :nterprise ;&M:< pro$ram re>uires educated and ener$etic people to pro#ide support to entrepreneurs. &.".( ;rofit 'aking &M: pro$ram is a ne/ dimensional 'an%in$ system in the 'an%in$ /orld. Most of the ,R@s are pro#idin$ door2to2door ser#ices to the entrepreneurs. :ntrepreneurs are satisfied 'y the ser#ice of the 'an% and ma%e profit. &.".- :ncourage 'anufacturing *he focus of RA, an% is to encoura$e manufacturin$ 'y the entrepreneurs /ho produce 'y purchasin$ #arious types of materials. ,R@ try to educate them to produce material if possi'le 'ecause if they can produce in line of purchase profits /ill 'e hi$h. &.".< %pread the :xperience Another reason of RA, an% is to spread the %no/led$e on the importance of &M: 'an%in$ re$ardin$ #arious 'usinesses. *he customer ser#ices officer share their %no/led$e from #arious 'usinesses and tries to help the entrepreneurs /ho ha#e shorta$e of the $athered %no/led$e. ,R@Bs /ho are the dri#in$ force of &M: di#ision of RA, an% also $ather %no/led$e a'out #arious 'usinesses and ma%e stron$er %no/led$e 'ase. 0.0 SME &roducts RA, an%, 'ein$ the youn$est 'an%, too% a step to 'rea% a/ay from usual tradition and tapped into the true su'ur' entrepreneurial initiati#es.
*oday, /ith o#er 10,000 cores of loans dis'ursed till date,
RA,
an% is countryBs lar$est
&M: financier that has made more than 2C5,000 dreams come trueR +f you ha#e a dream on /hich you trust, let us ma%e it true to$ether. Loan products Annono Rin Apur'o Rin Aro$$o Rin Di$oon Rin Prothoma Rin *rade plus usiness :>uity Loan Proshaer Rin usiness Loan &upplier -inance Deposit Products Prapti ,urrent Account
&.&.! .nonno )in

*his is a small scale loan desi$ned to finance small scale tradin$, manufacturin$ and ser#ice #entures, especially to aid the purchase of fi.ed assets and to finance /or%in$ capital. Eligibility :ntrepreneurs a$ed 'et/een 1K to C0 years :ntrepreneurs /ith minimum 2 years e.perience in the same line of 'usiness A 'usiness /hich must 'e a $oin$2concern /ith more than 1 year in operation
Maximum Amount -rom minimum D* 0 lac up to ma.imum of D* K lac Features Loan /ithout mort$a$e -or e.cellent 'orro/ers /ho ha#e paid or payin$ in due times, /e offer discounted rates Nuic%, >uality 'an%in$ throu$hout the country
Potential /omen entrepreneurs /ill also $et the facilities of this loan
&.&." .purbo )in

+n order to help our &M: 'orro/ers for financin$ /or%in$ capital or to purchase fi.ed assets, RA, an% offers AP"R @. +t caters to the need of entrepreneurs /ho are operatin$ in tradin$, manufacturin$, ser#ice, a$riculture, non2farm acti#ities, a$ro2 'ased industries and other sectors of our economy. Eligibility :ntrepreneurs ha#in$ a minimum of 0 years of some 'usiness acti#ities A 'usiness /hich must 'e a $oin$ concern for 0 years A$e minimum 25 years and ma.imum up to C0 years
Maximum Amount &tartin$ from D* K lac to ma.imum of D* 00 lac -eatures Hithout mort$a$e loan 'elo/ 10 lac &imple loan processin$ for e.pandin$ your 'usiness Nuic% dis'ursement Dis'ursement in one or t/o installment -le.i'le monthly repayment loan
&.&.& ;athshala )in

*his is a loan desi$ned to meet the needs of small and medium si7ed pri#ate educational institutions, such as %inder$artens, schools and colle$es etc. Eligibility A small = medium educational institute that is in operation for minimum 0 years *he institution should 'e sole proprietorship, partnership, pri#ate limited company or society *he educational institute must 'e a profit ma%in$ concern
Maximum Amount Minimum D* 0 lac to ma.imum D* 00 lac -eatures Hithout mort$a$e for loan 'elo/ 10 lac Loan for fi.ed assets purchase = ci#il construction 9 years Minimum documentation Loan repayment can 'e spread up to
Monthly repayment loan Nuic% dis'ursement -le.i'le interest rate 'ased on security
&.&.( .roggo )in

*his loan is suita'le for pri#ate clinics, dia$nostics centers and doctorsL cham'ers to purchase fi.ed assets under e>uated monthly installments. Eligibility o +nstitutions /ith at least 2 years in operation = profit ma%in$ concern o Doctors ha#in$ 5 years of e.perience Maximum Amount Minimum of 0 lac to ma.imum of 00 lac -eatures Loan /ithout mort$a$e up to K lac :asy loan processin$ Loan repayment schedule is spread up to 0 years 1J loan processin$ fee -le.i'le interest rate 'ased on security
&.&.- ,igoon )in

D+1@@! R+! is a loan facility for &mall and Medium enterprise. *his productBs main o'(ecti#e is to help #arious &mall and Medium entrepreneurs to meet their short2study cash flo/ shorta$es or
'rid$e the fund2flo/ $aps. Dou'le loan on your deposit. -or your 'usiness e.pansion, you do not need to encash your sa#in$s rather you can ta%e dou'le amount of loan on your deposit
Eligibility :ntrepreneur ha#in$ minimum 2 years of 'usiness acti#ities *he 'usiness /hich must 'e $oin$ concern for 2 years A$ed 'et/een 1K years to 55 years Maximum Amount Minimum of 5 lac to ma.imum of 00 lac D* Features Dou'le amount of loan on your deposit Attracti#e return a$ainst the deposit -le.i'le repayment plan monthly installment and sin$le installments Nuic% dis'ursement
&.&.< %upplier 9inance

&"PPL+:R -+!A!,: is a loan facility for the enlisted &uppliers of #arious lar$e retailers, mar%etin$ companies, distri'utors, e.porters etc. *his productBs main o'(ecti#e is to help #arious &uppliers to meet their short2study cash flo/ shorta$es or 'rid$e the fund2flo/ $aps. Eligibility +f you are an enlisted supplier of a corporate house /ith /hich RA, an% has a corporate tie2up Fa#e minimum 0 years of continuous operation Fa#e 1 year continuous relationship /ith the purchasin$ firm Ma.imum Amount Minimum Features o :>ual monthly installment and re#ol#in$ loan facility o 1J of loan amount as the processin$ fee D* 0 lac up to ma.imum D* 00 lac
&.- Aighlights of %': Banking ,ivision of B).1 Bank

&articu"ars !o. o ranch !o. &M: &er#ices ,entre !o of &M: "nit @ffice !o of A*M !o of ,DM !o of remittance distri'ution Pint !um'er of &taff !o of Loan dis'ursed ;cumulati#e< ,umulati#e Dis'ursement ;in million D*< !o. of outstandin$ Account Portfolio in amount ;in million D*< Amount of Deposit ;in million D*< @ear 18'8 81 C0 921 200 00 1K00 2292 005220 105985.52 119,520 95,CC0.52 5,5C2.5 @ear 1887 5C 00 92E 150 00 1K00 2109 202101 K9,180.01 120,CK5 02,EEC.1K 0,052.C Aro!th Rate 2C.8KJ 100J 21.KCJ 05.00J 0 0 C.5CJ 51.02J C0.E5J 25.11J 0K.0EJ C5.E1J
RA, an% ser#es the &mall and Medium :nterprises throu$h its 921&M: "nit @ffices situated at different parts of the country. ,ustomer Relation @fficer ;,R@< operates the &M: an%in$ at the "nit offices. &ome units comprise a Oone /hich is headed 'y a Oonal Mana$er. A$ain Oones comprise a *erritory headed 'y a *erritory Mana$er. All the *erritories across the country monitored 'y -our DMs. And the central &M: di#ision monitors all of them. *he central &M: di#ision has follo/in$ /in$s for monitorin$ and controllin$ &M: Loans distri'uted 'y the unit offices across the country) 1< 1eneral "nit 2< Lar$e usiness "nit 0< usiness "nit 9< AD-, ;&upplier and Distri'ution -inance "nit< 5< Monitorin$ ,ell
C< ,ommercial credit "nit 0.4Correspondence Banks= Hhere RA, an% does not ha#e any unit offices, it distri'uted &M: loans throu$h its an%s namely *he ,ity 'an% Ltd, Janata an%, Grishi an%, Pu'ali an%in$ Di#ision is confident enou$h to continue its e#er increasin$ $ro/th to correspondence an%Ltd.&M: industry. 0.0.5A. Cate#ories of "oansB All loans and ad#ances /ill 'e $rouped into 9;four< cate$ories for the purpose of classification, namely a< ,ontinuous Loan, '< Demand Loan, c< -i.ed *erm Loan, d< &hort2term A$riculture = Micro ,redit. a< ,ontinuous Loan ) *he loan accounts in /hich transaction may 'e made /ithin certain limit and ha#e an e.piry date for full ad(ustment /ill 'e treated as ,ontinuous Loan. :.amples are ,,, @D;o#er draft<. '< Demand Loan ) the loans that 'ecomes repaya'le on demand 'y the 'an% /ill 'e treated as Demand loan. +f any contin$ent or any other lia'ilities are turned to forced loan; i.e. /ithout any prior appro#al as re$ular loan< those too /ill 'e treated as Demand Loan. &uch as forced Lim, PAD,- P and + P etc. c< -i.ed *erm Loan) *he loans, /hich are repaya'le /ithin a specific time period under a specific schedule /ill 'e treated as -i.ed *erm Loan. d< &hort2term A$ricultural = Micro ,redit) &hot2term A$ricultural ,redit /ill include the short2term credits as listed under the Annual ,redit Pro$ram issued 'y the A$ricultural ,redit and &pecial Pro$ram Department ;A,&PD< of an$ladesh an%. ,redit in the a$ricultural sector repaya'le /ithin 12 months /ill also 'e included herein.
ta%e the 'an% ahead of its ima$ination and to erect ne/er and starlin$ milestones in 'an%in$
e< &hort2term Micro ,redit /ill include any micro credit not e.ceedin$ *%.25000 and repaya'le /ithin 12 months, 'e those termed in any names such as !on2a$ricultural credit, self2reliant ,redit, Hea#erBs ,redit or an%Bs indi#idual pro(ect credit.
B. Basis for Loan C"assification= @'(ecti#e ,riteria) 1) Past Due/Over due i<Any ,ontinuous Loan if not rene/edPrepaid /ithin the fi.ed e.piry date for repayment /ill 'e treated as past duePo#erdue from the follo/in$ day of the e.piry date. ii< Any Demand Loan if not repaidPrescheduled /ithin the fi.ed e.piry date for repayment /ill 'e treated as past duePo#erdue from the follo/in$ day of the e.piry date. iii< +n case of any installment;s< or part of installment;s< of a -i.ed *erm Loan ;not o#er fi#e years< is not repaid /ithin the fi.ed e.piry date, the amount of unpaid installment;s0 /ill 'e treated as past duePo#erdue from the follo/in$ day of the e.piry date. i#< +n case of any installment;s< or part of installment;s< of a -i.ed *erm Loan;o#er fi#e years< is not repaid /ithin the fi.ed e.piry date, the amount of unpaid installment;s< /ill 'e treated as past duePo#erdue after si. months of the e.piry date. #< *he &hort2term A$ricultural and Micro2credit if not repaid /ithin the fi.ed e.piry date for repayment /ill 'e considered past duePo#er due after si. months of the e.piry date. 2< All classified loans other than &pecial Mention Account ;&MA< /ill 'e treated as &tandard. 0< A ,ontinuous credit, Demand loan or a *erm Loan /hich /ill remain o#erdue for a period of E0 days or more, /ill 'e put into the ?&pecial Mention Account;&MA<A and interest accrued on such loan /ill 'e credited to +nterest &uspense Account, instead of creditin$ the same to +ncome account. *his /ill help 'an%s to loo% at account /ith potential pro'lems in a focused manner and it /ill capture early /arnin$ si$nals for accounts sho/in$ first si$n of /ea%ness.
9< Any continuous loan /ill 'e classified as) M&u'2standardB if it is past duePo#erdue for C months or 'eyond 'ut less than E months. MDou'tfulB if it is past duePo#er due for E months or 'eyond 'ut less than 12 months. M adPLossB if it is past duePo#er due for 12 months or 'eyond 5< Any Demand loan /ill 'e classified as) M&u'2standard if it is remains past duePo#erdue for C months or 'eyond 'ut not o#er E months from the date of claim 'y the 'an% or from the date of creation of forced loan. MDou'tfulB if it is remains pastP duePo#erdue for E months or 'eyond 'ut not o#er 12 months from date of the claim 'y the 'an% or from the date of creation of forced loan. M adPLossA if it is re mains pastPo#erdue for 12 months or 'eyond from the date of claim 'y the 'an% or from the date of creation of forced loan. C< +n case of any installment;s< or part of installment;s< of -i.ed *erm Loan is not repaid /ithin the due date, the amount of unpaid installment;s< /ill 'e termed as Mdefaulted installmentB. 0.5 Sector !ise -istribution of SME Bankin#
&.4 #bstacles and 1hallenges faced B).1 Bank imited in %':

At the 'e$innin$ phrase of the &M:, RA, an% Limited faced lots of o'stacles and challen$e. *here /as a shorta$e of capital, a'sence of hi$h technolo$y, hi$h employee turno#er, lac% of &%ills entrepreneur, no trade license of 'usinessman etc. *hese pro'lems are descri'ed in 'rief 'elo/) &.4.! 9inancial 1onstraint At the #ery 'e$innin$ of the &M:, RA, an% ha#e financial constraints. RA, an% does not ha#e enou$h li>uid money so that they failed to satisfy e#ery customers need. &.4." .bsence of Aigh Technology A'sence of hi$h technolo$y /as another constraint for the RA, ser#ice centre. &.4.& Aigh :mployee Turnover +n 2001 employee turno#er rate /as pretty hi$h. RA, an% does not ha#e any le$al 'indin$s to their employees. :mployees >uit their (o' accordin$ to their /ish. &o it also hampers the &M: &er#ice. &.4.( ack of %kills :ntrepreneur At that time entrepreneurs /ere not educated enou$h. *hey do not ha#e sufficient s%ills a'out the different types of paper re>uirement. +t hampers the loan processin$ time. &.4.- Trade icense *rade license /as another ma(or pro'lem for RA, an%. Most of the 'usiness man does not ha#e their 'usiness trade license. Hithout proper documents it /as >uite hard to sanction the an% limited. At that time they do not ha#e stron$ inter2'an%in$ soft/are so that they failed to contact /ith different &M:
loan.
&.4.< ;oor ;hysical Infrastructure +nade>uate supply of necessary utilities li%e electricity, /ater, roads and hi$h/ays hinder the $ro/th of &M: sector. &.4.3 :mployee %kills At that time employees do not ha#e sufficient %no/led$e a'out &M:. +t /as costly to train all the employees. &o lac% of proper trainin$ to employees /as another o'stacle for &M: $ro/th. &.4.4 ack of Information At that time &M: (ust $ot a ne/ shape in our country. &o no one has clear idea a'out it. &o #a$ue and /ron$ information /ere passed amon$ the people.
&.7 %teps Taken to #vercome the #bstacles

+n order to o#ercome the a'o#e mentioned o'stacles these steps /ere 2 &.7.! B).1 Bank started to expand their %': network +n 2001 RA, center. &.7." Training %ession for employees At the #ery 'e$innin$ of &M: operation employees do not ha#e sufficient %no/led$e to handle the customer. esides at that time there /ere lac% of educate employees to (oin this sector. &o RA, an% started to train up employees those /ho ha#e started to (oin in &M: di#ision. &.7.& #rientation %ession for Borrowers esides trainin$ /ith the employees L also started to train the 'orro/ers also. Most of the an% Limited their &M: loan 'usiness /ith 9 &M: sales and ser#ice center. 1radually they ha#e started to e.pand their net/or%. !o/ they ha#e 921 &M: sales and ser#ice RA, an% started follo/ some steps,
'orro/ers are not educate at all. :#en they donBt pass the &.&., or F.&.,. &o or$ani7e orientation session for a $roup of 'orro/ers. &.7.( Tried to #vercome 9inancial 1onstraint At the #ery 'e$innin$
L started to
L in#estment /as lo/ in the &M: loan. 1radually they ha#e started to
in#est hu$e in the &M:. As they ha#e a stron$ 'ac%$round of shareholders. &.7.- :ducate the :ntrepreneurs At that time most of the entrepreneurs (ust passed the &.&., or F.&., le#el. &o they ha#e a #ery poor %no/led$e a'out the 'an%in$ transaction. *hey come for the loan 'ut they donBt ha#e any trade license. &o educate the entrepreneurs /ere other steps to o#ercome the o'stacles. &.7.< :mployee 1ommitment As employee turno#er /as >uite hi$h so L started to $i#e handsome remuneration to their employees. *hey started to pro#ide some e.tra facilities to their employees. esides they also started to ta%e contract si$n for 2 or 0 years from the employees.
&.7.3 .dvancement
of Technology
RA,
an% Limited also started to de#elop their technolo$y. +n conse>uent of this they ha#e
transfer their soft/are from M & to -inacle. !o/ the respecti#e department can easily find out /hether the particular 'orro/er paid his installment or not.
0.'8 Se"ection of &otentia" Enterprise for SME

0.'8.' Enterprise se"ection Criteria *he success of &M: /ill lar$ely depend on the selection of a 'usiness and man 'ehind it. +n terms of the 'usiness ;:nterprise<, the follo/in$ attri'utes should 'e sou$ht) !. *he 'usiness must 'e in operation for at least one year ". *he 'usiness should 'e en#ironment friendly, no narcotics or to'acco 'usiness &. *he 'usiness should 'e le$ally re$istered, i.e., #alid trade license, income ta. or 6A*
re$istration, /here#er applica'le. (. *he 'usiness should 'e in le$al trade, i.e.Q smu$$lin$ /ill not 'e allo/ed or socially unaccepta'le 'usiness /ill not 'e entertained. -. *he 'usiness must ha#e a defined mar%et /ith a clear potential $ro/th <. *he 'usiness must 'e located ideally close to the mar%et and the source of its ra/ materialsPsuppliers. +t should ha#e access to all the utilities, s%illed manpo/erBs that are re>uired.
3. Any ris% assessed 'y the mana$ement in turn /ill 'ecome a credit ris% for the 'an%. &o effort
should ma%e to understand the ris% faced 'y the 'usiness. 0.'8.1 Entrepreneur Se"ection Criteria +n order to understand the capa'ility of the mana$ement 'ehind the 'usiness, the follo/in$ should 'e assessed) !. *he entrepreneur should 'e physically a'le and in $ood health, prefera'ly 'et/een the a$e of 25250. +f hePshe is an elderly person closer to 50, it should 'e seen /hat the succession process /ill 'e and /hether it is clearly defined or not. ". *he entrepreneur must ha#e the necessary technical s%ill to run the 'usiness, i.e. academic 'ac%$round or #ocational trainin$, rele#ant /or% e.perience in another institution or years of e.perience in this line of 'usiness. &. *he entrepreneur must ha#e and accepta'le social standin$ in the community ;People should spea% hi$hly of him<, he should possess a hi$h le#el of inte$rity ;doesnBt cheat anyone, $enerally helps people<, and morally sound ;Participates in community 'uildin$< (. *he entrepreneur must possess a hi$h le#el of enthusiasm and should demonstrate that he is in control of his 'usiness ;,onfidently replies to all >ueries< and has the a'ility to ta%e up ne/ and fresh challen$es to ta%e the 'usiness for/ard. -. &uppliers or creditors should corro'orate that he pays on time and is $eneral in nature
<. ,lear2cut indication of source of income and reasona'le a'ility to sa#e.
0.'8.0 Auarantor Se"ection Criteria :>ually important is the selection of a $uarantor. *he same attri'ute applica'le for an entrepreneur is applica'le to a $uarantor. +n addition he should posses the follo/in$s) !. *he $uarantor must ha#e the a'ility to repay the entire loan and is economically sol#ent ;chec% his net /orth< ". *he $uarantor should 'e a/are a'out all the aspect of &:D- loan and his responsi'ility &. 1o#t. and semi2$o#t. officials can 'e selected as a 1uarantor such as schoolteacher, colle$e teacher, doctor etc. (. Police, DR and Army persons, political leaders and /or%ers, and reli$ious leader cannot 'e selected as a $uarantor. -. *he $uarantor should %no/ the entrepreneur reasona'le /ell and should prefera'ly li#e in the same community.
&.!! %': oan ;rocess 9low

Hhen a customer comes to the unit office for a loan re>uest, first hePshe meets /ith the customer relationship officer to discuss a'out the loan, /hich loan product is suita'le for himPher. After then the follo/in$ process ta%es place.
,"o! Chart for &rocessin#
1)# approaches customer
1ustomer comes to the +nit office with Trade icense and other documents
1ustomer comes offices with 0uarantor B fills .9 B.C1 opening form
1)# visit again to assess sales, stocks, go-down-sister concerns 5 if any6
1)# applies for 1IB en@uiry
1)# visit customer residence
D# visit business B .pprovesCrecomm endsCre$ects the 1ustomer signs sanction, advice B submit original docs 3 charge insurance
1)# send proposal to A#
A# receives proposal B sends it to 1redit B oan
,isbursement loan after getting all the re@uired original documents including 1IB 1learance from Bangladesh Bank
.pprovalC)e$ecti on B advice accordingly
oan admin checks the docs B send them to 1redit for analysis
&.!" Terms and 1ondition of %': oan
*he &M: department of
RA,
an% /ill pro#ide small loans to potential
'orro/er under the follo/in$ terms and condition) I *he potential 'orro/ers and enterprises ha#e to fulfill the selection criteria I *he loan amount is 'et/een *% 2 lacs to 00 lacs. I &M: /ill impose loan processin$ fees for e#aluationP processin$ a loan proposal as follo/in$Q Loan Amount 2 lacs to 2.EE lacs 0 lacs to 5 lacs 5.01 lacs to 15 lacs 15.01 lacs to 00 lacs I Loan can 'e repaid in t/o /ays) Loan &rocessin# ,ee *% 5000 *% 8500 *% 10000 *% 15000
a6 +n e>ual monthly loan installment /ith monthly interest payment, or b6 y one sin$le payment at maturity, /ith interest repaya'le a >uarter end residual on
maturity I Loan may ha#e #arious #alidates, such as, 0 months, 9 months, C months, E months, 12 months, 15 months, 1K months, 29 months, 00 months and 0C months. I *he 'orro/er must open a 'an% account /ith the same 'an% and 'ranch /here the &M: has its account I Loan that appro#ed /ill 'e dis'ursed to the client throu$h that account 'y account payee che>ue in the follo/in$ manner) orro/er name, Account name, an%s name and ranchBs name
I
*he loan /ill 'e reali7ed 'y 1st e#ery month, startin$ from the #ery ne.t monthBs /hate#er the date of dis'ursement, throu$h account payee che>ue in fa#or of RA, an% Limited AP,. Hith an%Bs named and 'ranches name
*he 'orro/er has to issue an account paya'le 'lan% che>ue in fa#or of Limited 'efore any loan dis'ursement alon$ /ith all other
RA,
an%
security.
I *he 'orro/er /ill install a si$n'oard in a #isi'le place of 'usiness or manufacturin$ unit mentioned that financed 'y ? RA, an% LimitedA. I*he 'orro/er has to $i#e necessary and ade>uate collateral and other securities as per 'an%Bs re>uirement and procedures. I &M:, RA, an% may pro#ide 100J of the !et Re>uired Hor%in$ ,apital 'ut not
e.ceedin$ 85J of the a$$re$ate #alue of the +n#entory and Account Recei#a'les. &uch loan may 'e $i#en for periods not e.ceedin$ 1K months. Loan could also 'e considered for shorter periods includin$ one time principal repayment facility, as stated in loan product sheet. I +n case of fi.ed asset -inancin$ 50J of the ac>uisition cost of the fi.ed asset may 'e considered. Hhile e#aluatin$ loans a$ainst fi.ed asset, ade>uate $race period may 'e considered dependin$ on the cash $eneration after the installation of the fi.ed assets. Ma.imum period to 'e considered includin$ $race period may 'e for 0C months. &.!& 'onitoring Monitorin$ is a system 'y /hich a 'an% can %eep trac% of its clients and their operations. &o monitorin$ is an essential tas% for a ,R@ to %no/ the 'orro/ers acti#ities after the loan dis'ursement. *his also facilitates the 'uildup of an information 'ase for future reference.
&.!&.! Importance of 'onitoring

*hrou$h monitorin$ a ,R@ can see /hether the enterprise in#ested the sanctioned amount in the pre2specified area of his 'usiness, ho/ /ell the 'usiness is runnin$, the attitude of the entrepreneur, cash credit sales and purchase, in#entory position, /or% in process and finished $oods etc, *his information /ill help the ,R@P RA, an% to reco#er the loan accruin$ to the schedule and to ta%e the necessary decisions for repeat loans. Moreo#er, monitorin$ /ill also help to reduce delin>uency. ,onstant #isit o#er the client P'orro/er ensures fidelity 'et/een the 'an% and the 'orro/er and tends to foster a report 'et/een them.
&.!&." .rea of 'onitoring

*he purpose is to %no/ the entire 'usiness condition and all aspects of the 'orro/ers so that mishap can 'e a#oided. i. usiness ,ondition) *he most important tas% of the ,R@ to monitor the 'usiness fre>uently, it /ill help him to understand /hether the 'usiness is runnin$ /ell or not, and accordin$ly ad#ice the 'orro/er, /hene#er necessary. *he fre>uency of monitorin$ should 'e at least once month if all thin$s are in order. ii. Production) *he ,R@ /ill monitor the production acti#ities of the 'usiness and if there is any pro'lem in the production process, the ,R@ /ill try to help the entrepreneur to sol#e the pro'lem. @n the other hand the ,R@ can also stop the misuse of the loan other than for the purpose for /hich the loan /as dis'ursed. iii. &ales) Monitorin$ sales proceed is another important tas% of the ,R@ it /ill help him to forecast the monthly sales re#enue, credit sales etc. /hich /ill ensure the reco#ery of the monthly loan repayments from the enterprise as /ell as to ta%e necessary steps for future loans. iv. +n#estment) +t is #ery important to ensure that the entire loan has 'een in#ested in the manner in#ented. +f the money is utili7ed in other areas, then it may not 'e possi'le to reco#er the loan. v. Mana$ement of ra/ materials) +n case of a manufacturin$ enterprise, mana$ement of ra/ materials is another important area for monitorin$. +f more money is 'loc%ed in ra/ materials then necessary, then the enterprise may face a fund crisis. @n the other hand the production /ill suffer if there are not enou$h ra/ materials.
&.!&.( 'onitoring %ystem

*he ,R@ can consider the follo/in$ thin$ for monitorin$) i. *he ,R@ /ill monitor each 'usiness at least once a month. FePshe /ill ma%e a monitorin$ planP schedule at the 'e$innin$ of the month. Durin$ monitorin$ the ,R@ must use the prescri'ed monitorin$ from and preser#e in the client file and for/ard a copy of the report to &M: head office immediately. ii. A &M: 'ranch /ill maintain the follo/in$ files) *he file /ill contain Purchase Receipt, Deli#ery MemoBs, and Nuotations. +n addition, all other papers related to furniture and fi.ture
procurement iii. @ther fi.ed assets and refur'ishment) All fi.ed assets and refur'ishment related papers such as purchase receipt, deli#ery memoBs, >uotation, $uarantee and /arrantee papers, ser#icin$ related papers and any other paper related to fi.ed assets are refur'ishment /ill 'e in this file. iv. Lease a$reement file) *his file /ill contain all papers related to lease a$reement 'et/een the &:&D& office and o/ners of the leased premises. v. +ndi#idual client file) +ndi#idual files are to 'e maintained for each 'orro/er and that /ill hold loan application, Loan Proposal, ,opies of Loan &anction Letter, Dis'ursement Memo, Monitorin$ Report, ,+ application and Report, ,redit report from other 'an% and all other correspondents includin$ 'an% receipt vi. &tatement file) All types of statement sent to &M: head office /ill 'e %ept in this file chronolo$ically vii. @ffice instruction file) All %ind of office instruction re$ardin$ administration should 'e %ept in this file. viii. @peratin$ instruction and $uideline files) All %ind of office instruction and $uidelines related to operatin$ should 'e %ept in this file ix. !e/ forms introduction file) All minutes of meetin$, /hene#er held, should 'e %ept in this file. x. &ecurity documents and le$al aspect file) @ne set of security documents and la/yerBs opinions and su$$estions re$ardin$ issue /ill 'e %ept in this file. *he ori$inal should 'e send to &M: head office on a /ee%ly 'asis xi. &ur#ey form file) After conductin$ sur#ey, all sur#ey /ill 'e %ept in this file chronolo$ical.
&.!( 1losing ;rocedure of %': oan ;re 1losing manual activities

!. Recei#e &M&P-a. re>uistin$ for closin$* *he 'orro/ers repay the loan as per repayment schedule. Hhen the repayment is 'ein$ complete the 'orro/er re>uest the unit officeP,R@ to close his loan account. *he unit officeP,R@ sends a &M&P-a. the loan administration di#ision re>uestin$ to close the loan account of the respecti#e 'orro/er. ". Print the &M&P-a.) Recei#in$ the re>uest from the respecti#e unit officeP,R@, the loan administration di#ision ta%es a paper print and ta%es necessary steps to close the account. &. rin$ the loan file from achie#e) *he loan account file of the respecti#e 'orro/er is 'rou$ht from the archi#e. And the documents of file are chec%ed /ith M & record. (. @'tain appro#al from the concern authority) it is re>uire the permission of concerned authority to close the loan. +f concerned authority appro#ed the closin$ of the loan account then ne.t initiati#es are ta%en. -. ,hec%in$ in -inacle) *he loan administration di#ision chec%s the loan status in M &. +f there is any difference found /ith the &M&P-a. from unit office and M & then deposits sleeps are re2chec%ed. *hen the loan administration di#ision calculates the total 'alance of the loan account ;Led$er 'alance S 'uffer interest S:.cise duty< <. &M& sent to concern ,R@) Loan administration di#ision sent an &M& to the concerned ,R@ informin$ the current 'alance of the re>uested loan account. 3. Recei#e and print closin$ &M&P-a. chec%in$ = -ree7in$) *he concerned ,R@ send a final &M& to loan administration di#ision informin$ that the respecti#e 'orro/er cleared all his lia'ilities re$ardin$ the loan. *he loan administration di#ision ta%es paper print of the &M&, chec% it and finally close the loan account.
(./ %': )elates With 'odern 'arketing 1oncept

*he $oal of modern mar%etin$ concept is the customer satisfaction and this satisfaction comes throu$h inte$rated mar%etin$ efforts. +n terms of &M: the $oal is to economic de#elopment of our country throu$h meetin$ and e.ceedin$ customer needs 'etter than competition. +n terms of customer orientation, &M: pro#ides the 'est facilities to customers re$ardin$ their needs. &M: pro#ides unsecured loans up to K lacs /hich none of other 'an%s pro#ide. +n spite of inte$rated effort, &M: is a team2'ased or$ani7ation. ,R@ $o to the door2to2door 'usiness and 'y dependin$ on them, L $i#es loan to clients. y this L $ets the direct feed'ac% from the customers a'out their needs and /ants. L analy7es the customersB /ants and tries to $i#e
them the product that the customer /ants. *hou$h it is team 'ase mana$ement 'an%, the corporate $oals can 'e achie#ed and $ainin$ trust of mana$ement satisfies customers.
M!r#eting Conce$t The achievement of corporate goals through meeting B exceeding customer needs better then customer needs.
C%stomer orient!tion 1orporate activities are focused upon providing customer satisaction
Integr!te& E ort .ll staffs accept the responsibility for creating customer satisfaction
'o!" Ac(ievement The belief that corporate goal can be achieved through customer satisfaction
-i$ure) Mar%etin$ ,oncept for &M:
(.! 'arketing ;rocesses )elate to %':

asically strate$ic plans define the or$ani7ations o#erall mission and o'(ecti#e. Hithin each 'usiness unit, mar%etin$ plays a role in helpin$ to accomplish the o#erall strate$ic o'(ecti#es. (.!.! 'arket %egmentation *he mar%et consists of many types of customers, products and needs and the mar%eter has to determine /hich se$ments offer the 'est opportunity for achie#in$ company o'(ecti#es. &M: se$ments the mar%et into three cate$ories) *radin$, Manufacturin$, and &er#ice. +n tradin$
'usiness, there are different %inds li%e retailer, /holesaler, food 'usiness, $eneral stores etc. in manufacturin$, there are mills, 'a%ery, press 'usiness, etc and also e.cept purchasin$ manufacturer or$ani7ation also ta%e loans to meet the /or%in$ capital re>uirements. +n ser#ice 'usiness, there are patholo$y, hospitals and satellite 'usiness. *hou$h in our country there is not much manufacturin$ or$ani7ation, so most of the demands $o for tradin$ 'usiness. Fo/e#er it is a small and medium enterprise, therefore it focuses on small loan clients that are small types of 'usiness li%e tradin$, manufacturin$, and ser#ice. asically manufacturin$ clients ta%e medium or lo/ amount of loan durin$ short period of time.
Sma"" ; Medium Entreprises
Tr!&ing
Manufacturin# Mills a%ery Press Retail
Service Patholo$y &atellite Fospital -ast food
Hholesale Retail 1arments Department
(.!." Bases for %egmenting 1onsumer 'arkets *here is no sin$le /ay to se$ment a mar%et. A mar%et has to try different se$mentation #aria'les, alone and in com'ination, to find the 'est /ay to #ie/ the mar%et structure. (.!.".! 0eographic segmentation* Di#idin$ a mar%et in to different $eo$raphic units such as nations, states, re$ion, countries, cities, or nei$h'orhood. +n terms of &M:, it tar$ets e#ery re$ion around the country in terms of small 'usiness. !o/ the &M: has almost 92E unit offices to pro#ide credit facilities to the clients around the country. :ach of the &M: unit offices mainly setup the district le#els around the city 'ut not in the rural or unde#eloped areas. Fo/e#er, /here the potential enterprisesP'usinesses are more, &M: try to de#elop unit office at that
particular re$ionParea to capture the entire mar%et.
(.!."." ,emographic %egmentation* Di#idin$ the mar%et in to $roups 'ased on demo$raphic #aria'les such as a$e, se., family, income, education, reli$ion, and nationality. +n terms of &M:, in some cases it is #ery strict. +f one /ho has Findu reli$ion and li#e close to the 'order, &M: /ould ha#e #ery careful to pro#ide loans to those clients. &M: pro#ide loans 202C0 a$ed peoples. &M: is restricted to pro#ide loans more than a$e of C5. (.!.".& Behavioral %egmentation* eha#ioral se$mentation di#ides 'uyers in to $roups
'ased on their %no/led$e, attitude, uses or responses to a product. Many mar%eters 'elie#e that 'eha#ior #aria'les are the 'est startin$ point for 'uildin$ mar%et se$ments. +n terms of &M:, fe/ clients /ould 'e found those /ho had done Masters and most of clients are secondary or hi$her secondary pass. ut 'asically &M: se$ments clients at least /hether the clients can understand hisPher o/n 'usiness. &M: $i#es #ery importance on attitude. At the first si$ht if any client 'eha#es rou$h then ,R@ ne#er $o to that particular client. (." Target 1onsumer *o succeed in todayBs competiti#e mar%etplace, or$ani7ation must 'e customer centered and %eepin$ them 'y deli#erin$ $reater #alue. ut 'efore it can satisfy customers, or$ani7ation must first understand their needs and /ants. *here are too many different %inds of consumers /ith too many different %inds of needs and some or$ani7ations in a 'etter position to ser#e certain se$ments of the mar%et. +n terms of &M: of RA, 'an%, their tar$et customers are small and medium enterprises. RA, 'an% &M: tar$et customers those /ho ha#e minimum income of 90280 thousand *%. per month. Mostly entrepreneurBs in our country is illiterate. &ome of them are hi$her secondary and &, $raduate. &o &M: mainly tar$eted those clients /ho actually asically accordin$ to the clients demand, &M: support understand his o/n 'usiness. *here are three sectors of tar$et customers /hich &M: follo/s) *radin$, &er#ice and Manufacturin$. them financially to enhance their 'usiness.
Mar%et Analysis
;roduct Target 1onsumer ;lace
;rice
Mar%et Plannin$
Mar%et ,ontrol
;romotion
Mar%et +mplementation -i$ure) -actors influencin$ mar%etin$ strate$y (.& Target 'arket +t is the process of e#aluation of each mar%et se$ment and after then selectin$ one or more se$ments to enter into the tar$et mar%et. +n terms of &M:, the scope is specified in /hich the tar$et mar%et is small and medium enterprise. Fo/e#er, &M: is restricted for leather, (e/elry, and alcohol 'usiness. (.( ,ifferentiated marketing* "sin$ a differentiatin$ mar%etin$ strate$y, an or$ani7ation decides to tar$et se#eral mar%ets or niches and desi$ns separate offers for each. asically it pro#ides the loan /ithin 25 days and $i#es the hi$hest month store pay the loan than other 'an%s. +n terms of tradin$ 'usiness, if the 'usiness is not too 'i$ then &M: is not allo/ to $i#e more than 20 months to repay the loan. @n the other hand, in case of manufacturin$ 'usiness, if the 'usiness = , $roups. is too 'i$ then &M: $i#es theclient$rossperiodandmorethan00monthstorepaythe loan. &M: also cate$ori7es the dealin$s /ith the customers in A, .2,ate$ories officers are dealin$ /ith the educated clients, li%e masters or a'o#e or hi$hly social
client. B2,ate$ories officers are dealin$ /ith the under$raduate or normal standard clients. 12 ,ate$ories officers are dealin$ /ith the non2educated or illiterate normal clients. (.(.! 'arket ;ositioning Mar%et positionin$ means to occupy a clear, distincti#e and desira'le place relati#e to accomplish products in the minds of tar$et consumers. *o meet the customer demands, &M: already esta'lish different offices across the country. efore ta%in$ the loan ,R@ clearly defines to the clients re$ardin$ &M: policies and repayment schedules. *o positionin$ in the mar%et, &M: not only pro#ide loan 'ut also they $i#e some #alua'le ideas to enhance the clients 'usiness and for economic de#elopment. @nce a company decides in /hich se$ments of the mar%et it /ill enter, it must decide /hat positions it /ants to occupy in those se$ments. A products positionin$ in the /ay the product is defined consumers mind relati#e to competin$ product. Main head office of &M: is in Dha%a city and rest of its unit offices are spread out surroundin$ the country. :ach unit office consist of 2 or 0 ,R@ /ho pro#ides door to door ser#ices, they e#en /or% at ni$ht. Many 'an%s ha#e field officers 'ut could not carry out the unit office facilities. &o RA, 'an% can reach to the potential clients at any/here in the country. *he ,R@ of &M: ne#er say to the customer at the first impression that interest rate is29J.*heytryto ma%e understand to the clients mind that2J per month or e>ual monthly payment as /ell as many 'enefits. (.(." +ni@ue %elling ;ropositions 9acilities 2 the main facility of &M: is to pro#ide >uic% ser#ice to the clients, /hich mi$ht ta%e 15 to 20 days. Fypothecation loans are collateral security free /hich other 'an%s ta%e securities. +f any clients $ot serious pro'lem in 'usiness after ta%in$ &M: loans then it $i#es reschedule to repay the clients loan. Hhile ta%in$ repeat loan &M: pro#ide #arious facilities to the clients. (.(.& ,ifferent features- +-, and &hore 'an%s are $oin$ to carry out e>uity participation /ith RA, 'an%. +t /ill deposit more funds to pro#ide more loans to the clients, /hich co#er around the /hole country
(.(.( ,ifferent services- to $et the loan, client do not ha#e to $o in 'an% directly. All sorts of /or% are done 'y the ,R@ for clients to ha#e the loan >uic%ly. +n terms of necessities ,R@ $o to clients home and 'rin$ repayments of the loan. +n fa#or of clients, ,R@ also /or% in holidays. (.(.- 'arketing %trategies for 1ompetitive .dvantages *o 'e successful the company must do a 'etter (o' than its competitors for satisfyin$ tar$et consumers. *hus mar%etin$ strate$ies must 'e $eared to the needs of consumers and also to the strate$ies of competitors. *he core competency of &M: is that it already set up the 'usiness around the country and mar%etin$ officers $o to the door to door to the clients. @n the other hand, it pro#ides the hi$hest amount for unsecured loans than other 'an%s. +n addition, it pro#ides e.tremely >uic% ser#ices to clients 'y $ettin$ the loan. (.- ,eveloping 'arketing 'ix *he set of controlla'le tactical mar%etin$ tools2 product, price, place and promotion that the or$ani7ation 'lends to produce it /ants in the tar$et mar%et. *he main possi'ilities can 'e controlled into four $roups of #aria'les %no/n as the 9our ;=s) Product, Price, Promotion and Place. (.-.! ;roduct Means the $oods and ser#ices com'ination the company offers to the tar$et mar%et. +n #ie/ of &M:, they ha#e short term and medium term loans /hether ,R@ pro#ide >uic% and >uality ser#ices to clients. ,ustomer ser#ice is another element of product strate$y. A company desi$ns its products and support ser#ices to profita'ility meet the needs of tar$et customers. &hort terms products means 0PCPEP12 months loan andmidtermproductmeans15P1KP29P00P0Cmonthsloan. -or e.ample2 in :id occasion most cloth merchants /ant short2term loan to carry out a profita'le 'usiness. (.-.!.! %hort Term ;roducts :asy repay- these cate$ories of products are easy repaid for the clients. Hhen the pic% season comes li%e ,hristmasP:idPPu(a then these short2term products could 'e re>uired for the clients. +f the clients can e.ercise these types of loan at the pic% season then clients 'usiness carry out li%e hot
ca%es and easily can repay the loan to RA, 'an%. %hort-term fund re@uirement2 /ithout pic% season, many clients could ha#e re>uired short funds to hold the tender or dealership. RA, 'an% /ould 'e a $ood hand for the clients to ha#e that dealership.
(.-.!." 'id Term ;roducts ;roper +tiliEation2 on a#era$e, clients $et these cate$ories of loan for 1K to 29 months. &o clients can easily utili7e the money re$ardin$ the prospect of the 'usiness. :asy repay2 thou$h it is a lon$ time repayment schedule, so clients ma%e the profits to $et the re>uired amount of loan and repay the loan in a monthly 'asis. (.-." ;rice Price is the amount of money customers ha#e to pay to o'tain the products. +n terms of &M: of RA, 'an%, clients ha#e to pay a certain amount of processin$ fees and stamp costs to $et the loan. @ne of the factors that affect the companyBs o/n pricin$ mo#es. -or e.ample2 many 'an%s ha#e processin$ fees /ith 1J or 2J additional char$e and other miscellaneous costs. ut RA, 'an% has /ithdra/s other costs and char$es to carry out in the competiti#e mar%et. 1ostlyRA, 'an% &M: interest rate is 29J. &o it is little 'it of costly 'y the
competiti#e ed$e 'ut the client $ets this loan /ithin #ery short period of time. +n this situation client cannot thin% a'out the interest rate 'ecause at the ri$ht time they $et the loan, /hich they can e.ercise in their 'usiness, can yields profits. :asy sanction2 +f the ,+ an$ladesh ;,redit +nformation ureau< is 'ein$ cleared from an% and all information is 'ein$ transparent from client then the loan is
'ecome sanctioned in fa#or of client. .ll time consultancy2 Hhether the customers ta%e loan or not, ,R@Bs $i#e the moral ad#ices to the clients for the de#elopment of the 'usiness. (.-.& ;lace 5,istribution6 +t includes companyBs acti#ities that ma%e the product a#aila'le to tar$et consumers.&M: already spread out its unit offices around the country. &M: tries to reach each and e#ery small
'usiness enterprise to meet clientBs demands. Mar%etin$ channel decisions are amon$ the most important decision that mana$ement faces. Mana$ement must ma%e channel decision carefully, incorporatin$ todayBs needs /ith tomorro/ li%e sellin$ en#ironment. &M: of RA, 'an% already has 92E unit offices, /hichispreadthrou$houtthecountryand100E,R@Bs/or%in$ under these unit offices. *hese officers ha#e respecti#e selected super#isors /ho directly report to the &M: main head office. &o &M: di#ision has e#ery/here in respecti#e clients. (.-.( ;romotion +t means acti#ities that communicate the merits of the product and persuade tar$et customers to 'uy it. -or e.ample2 up to K lacs ta%a &M: donBt ta%e collateral security to pro#ide loan. Also for the repeat 'orro/ers &M: discounts up to CJ interest rate and *%. 1000fortherespecti#eclient. Ad#ertisement is one of the ma(or elements in promotion. &M: is focusin$ customers 'y printin$ #arious leaflets, ma$a7ines and sho/in$ 'anners in front of their respecti#e unit offices. (.(.! ,oor to door service2 it is a door2to2door customer ser#ices to clients. ,R@ %noc% the door of the 'usiness enterprise /hether the client has re>uired any loan or not. (.(." 'arket to non-Bank people) &ome clients do not maintain any account in the 'an%. *hey are dealin$ 'y cash. y pro#idin$ RA, 'an% loans, these sorts of clients can 'e attached /ith the 'an%s. +n addition, they can understand more a'out 'an%in$ and can ha#e a $ood relationship /ith them. an$ladesh to ser#e all
3.8 S:O$ Ana")sis

*he comparison of &tren$ths, Hea%nesses, @pportunities and *hreats is normally referred to as a &H@* analysis. +ts central purpose is to identify the strate$ies that /ill create a firm2specific 'usiness model that /ill 'est ali$n, fit, or match a companyBs resources and capa'ilities to the demands of the en#ironment in /hich it operates. +t helps the or$ani7ation to identify ho/ to e#aluate its performance and scan the macro en#ironment, /hich in turn /ould help or$ani7ation to na#i$ate in the tur'ulent ocean of competition. Stren#th= ,ompany reputation ; rand ima$e< &tron$ in#estment international or$ani7ation li%e +-,, &horecap etc &tron$ mana$ement = their strate$y -acility = e>uipment +nteracti#e corporate culture ,omprehensi#e = $oal oriented team /or% at mid = lo/er le#el Fu$e untapped su'2ur'an = rural &M: mar%et 1ro/in$ in less tapped sectors26ehicle finance, trade finance :.plorin$ the une.plored mar%et of ,,Po#erdrafts county/ide Profitin$ from self2$enerated lo/ cost deposit 1eo$raphical e.pansion throu$h &M: A$ricultural 'ranches +ntroduction of Mo'ile an%in$ /ill 'rin$ in ne/ era in 'an%in$ industry +ncreasin$ trend in consumerism and ur'ani7ation dri#en 'y steady economic $ro/th Mar%et could 'e misleaded throu$h assumin$ RA, as !1@ name A'sence of MFunter2-armerB strate$y for &M: centers Fi$h employee turno#er Lo/ remuneration pac%a$e Mana$in$ PAR ;portfolio at ris%< under control delin>uency and !PLJ as tar$eted le#el Retainin$ resources /ould 'e challen$in$ More positionin$ strate$y of the products ;'oth lendin$ = deposit<, process, ser#ices yet to
Opportunities
:eakness
'e done $hreats
:mer$in$ of ne/ multinational = international 'an%s 1reater re$ulatory inter#ention in &M: lendin$ +ncreasin$ num'er of !PL ;non performin$ loan< most of cases collateral free L pro#ides
<.! 9indings
RA, 'an% plays a #ital role in the &M: sector of an$ladesh. "p to April 2010, loans for 2C5,000 clients and in total 10,000 crore *G. main profita'le product of L is the pioneer in the &M: loan
sector. *hey ha#e ta%en different strate$ies for the de#elopment of this sector, 'ecause it is the L. +n the recent years they launched different types of &M: loan L. *he findin$s product for miti$ate the different tar$et customers needs. *hrou$hout the sur#ey analysis and 0 months internship period this reports found some shortfalls of &M: sector of of this report are $i#en 'elo/) Most of the customers /ant to reduce the interest rate and increase tenure. &ome customers are not satisfied /ith the attitudeP'eha#ior of ,R@s. Fu$e num'er of documents in the helpdes% causes delay in the dis'ursement process Oonal office can appro#e up to 5 lacs, 'ut at present the percenta$e of repeat customerBs increase rapidly and most of the cases they apply for more than 5 lacs. Lac% of mar%etin$ acti#ities in the ur'an area, /hereas other competitors are $i#in$ more ad at different spot. *he remuneration pac%a$e for the entry and the mid le#el mana$ement is considera'ly lo/. *he compensation pac%a$e for lo/er than the contemporary 'an%s. &ome of the 'orro/ers do not install a si$n'oard in a #isi'le place of 'usiness or manufacturin$ unit mentioned that financed 'y ? RA, an% LimitedA. L entry2le#el position e#en
4.1 Recommen&!tion
-or 'etter impro#ement of &M:, L can consider the follo/in$ recommendation) I Reduce the interest rate 'ecause most of their competitors are pro#idin$ loans at a lo/er rate for e.ample most of the competitors 'an%s pro#idin$ loan at 12215J interest rate I +ncrease mar%etin$ acti#ities in the ur'an area 'ecause other competin$ industries are ta%in$ hu$e promotional acti#ities to capture the ur'an area /hich helps them to increase their customer 'ase. I 1i#e proper trainin$ to the ,R@s /ith some real life pro'lem 'ecause they are all in all for &M: loan. &ometimes they ma%e mista%es /hich results in customer harassment, increase processin$ time and char$es. ILoo% after ,R@s acti#ities 'y the O@s 'ecause sometimes they are hidin$ information and ma%e mista%es to prepare financial statements and other documents. I+ncrease amount of &M: loan appro#al 'y the Oonal officer, at present they can appro#e up to 5 lacs. I+ncrease amount up to 10 lacs /ithout collateral security for pro#idin$ loans I Recruit fresh O@s from outside to control ,R@ $rie#ances ;since present O@s are mostly promoted ,R@s /ho ha#e (oined the an% all most at same time<. I -re>uently chec% clients are perform all the terms and condition of &M: loan. I +ncrease the remuneration and compensation pac%a$e for the entry and mid le#el mana$ement other/ise L canBt retain the efficient and e.perienced employees.
4.0 Conc"usion =
RA, an% intends to set standards as the mar%et leader in an$ladesh. +t demonstrates that a locally o/ned institution can pro#ide efficient, friendly and modern 'an%in$ ser#ice on a profita'le 'asis. +t /as an honor to /or% as an intern in a reputed or$ani7ation li%e RA, an% Limited. *he RA, an% Limited is a 'an% that confirms the 'est ser#ice to the customers as /ell as to the employees. y /or%in$ in &M: di#ision, the %no/led$e that /as learnt /ould 'e helpful enou$h to sustain /ith the real or$ani7ational en#ironment. &M: is the most emer$in$ sector to e.pand and RA, an% has e#ery potentiality to e.plore the &M: 'usiness throu$hout the country. *his report presents some si$nificant /ays to meet the future challen$es in &M: 'usiness. !e#ertheless, the success of &M: 'an%in$ depends on the e.pertise and dedication of the field le#el officers. *hat is /hy continuous trainin$ and moti#ation is #ery much rele#ant to run the &M: 'an%in$ successfully.
Re erences
1. Philip Gotler ;2010 <, Principles of Mar%etin$, 10th :dition Prentice Fall, !e/ Jersey. 2. rac an% Limited ;2010< &M: Di#ision 0. rac an% Limited ;200E< &M: Di#ision
9. http)PP'rac'an%.comPfinancialstatementP RA, an% Annual Report 2010.pdf ;*ime) 12.00pm Date) 19th April< 5. http)PP'rac'an%.comPcompanyTprofile.php ;*ime) 01.00pm Date) 21 th April< C. ///.'rac'an%.comPphpPincludeT$en ;*ime) 11.00am Date) 10 th May<

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INTERNSHIP REPORT ON SME Activities OF BRAC BANK LIMITED

2.3 Chapter 3 Chapter 4 4.' 4.1/4.0

Internship Report On SME Activities of BRAC Bank Ltd

.................................... ,ommittee ,hairman

'.' Ori#in of the Report

!.".! %pecific #b$ective

!.( imitations of the )eport*

an%. :#ery tas% has some

1.'Back#round of BRAC Bank

opportunities for all indi#iduals and 'usiness in

an% Limited consists of four ma(or 'usiness di#isions namely ,orporate

Shareho"din# Structure of Brac Bank Limited

Corporate Chronic"e ; Information

$he Brand &romise of BRAC Bank L$- =

Mana#ement of Brac Bank=

$ab"e1.' %ame of the -irectors

$ab"e1.1 %ame of Mana#ement Committee

M.&ar/ar Ahmed Oeeshan Gin$shu% Fu>

,unctiona" -epartment of BRAC Bank=

,unctiona" -eparment of BrAC Bank

:in#s of BRAC Bank Ltd=

Corporate Bankin# -ivision=

To provide wide range of financial services professionally, efficiently and

Our va"ues= www.AssignmentPoint.com

B. Retai" Bankin# -ivision

-. ,orei#n $rade ; $reasur) -ivision= www.AssignmentPoint.com

ar$ua'ly in terms of si7e and operation.

RA, has 'een /or%in$ relentlessly to reali7e the

%pread the :xperience

*oday, /ith o#er 10,000 cores of loans dis'ursed till date,

an% is countryBs lar$est

&.&.! .nonno )in

&.&." .purbo )in

&.&.& ;athshala )in

&.&.( .roggo )in

&.&.- ,igoon )in

&.&.< %upplier 9inance

&.- Aighlights of %': Banking ,ivision of B).1 Bank

&.4 #bstacles and 1hallenges faced B).1 Bank imited in %':

&.7 %teps Taken to #vercome the #bstacles

0.'8 Se"ection of &otentia" Enterprise for SME

<. ,lear2cut indication of source of income and reasona'le a'ility to sa#e.

&.!! %': oan ;rocess 9low

,"o! Chart for &rocessin#

1)# approaches customer

1ustomer comes offices with 0uarantor B fills .9 B.C1 opening form

1)# visit again to assess sales, stocks, go-down-sister concerns 5 if any6

1)# applies for 1IB en@uiry

1)# visit customer residence

1)# send proposal to A#

A# receives proposal B sends it to 1redit B oan

.pprovalC)e$ecti on B advice accordingly

&.!" Terms and 1ondition of %': oan

*he &M: department of

an% /ill pro#ide small loans to potential

&.!&.! Importance of 'onitoring

&.!&." .rea of 'onitoring

&.!&.( 'onitoring %ystem

&.!( 1losing ;rocedure of %': oan ;re 1losing manual activities

(./ %': )elates With 'odern 'arketing 1oncept

-i$ure) Mar%etin$ ,oncept for &M:

(.! 'arketing ;rocesses )elate to %':