Escolar Documentos
Profissional Documentos
Cultura Documentos
Submitted to,
James Bakul Sarkar
Assistant Professor
School of Business
Submitted By:
Name : Md. Shahid Hossain
ID : 111-112-005
Department : BBA in AIS
Date of Submission:
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It is my original work and is not submitted for the award of any other degree, diploma, and
fellowship and that the work has not been published in any journal or magazine.
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_____________________
Mr. James Bakul Sarkar
Assistant Professor
School Of Business
United International University
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Table of Content
Chapter One: Introduction
1.1
1.2
1.3
1.4
1.4.1
1.4.2
1.4.3
1.5
1.5.1
1.5.2
1.6
1.7
1.8
1.9
1.10
Introduction
The Internship
Origin of the Report
Objectives of the study
Primary Objective
Secondary Objective
Business Objectives of DBBL
Methodology Of The Study
Primary Source
Secondary Source
Scope Of The Study
Limitation of The Study
Coverage of The study
Rational of The Study
Organizational Perspective
History of Bank
Banking History Of Bangladesh
Condition In Banking Sector In Bangladesh
The History of DBBL
Mission of Dutch-Bangla Bank
Vision of Dutch-Bangla Bank
Slogan
Business Philosophy
10
10
11
11
11
12
12
13
15-22
15
15
16
16
18
20
20
20
25-36
25
25
26
26
26
26
27
27
27
31
31
32
32
33
33
3.1
3.2
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.5.5
3.3.6
3.4
3.5
3.6
3.7
3.8
3.9
10-13
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Definition of Credit:
Factors Related with Credit
Credit flow of DBBL
Types of loans and advances offered by DBBL
Corporate Credit Scheme
Retail Credit Scheme
Lending Policies Of Dutch-Bangla Bank Ltd
Lending Procedure of Dutch-Bangla Bank Ltd
General Procedure for Loans and Advances
Risk
Risks in Banking Business
Business Risk
Management risk:
Security Risk:
Risk Management Process
Risk Management
Lending Risk Analysis (LRA)
Credit Assessment And Selection Of Borrower
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33
34
34
38-40
38
38
39
40
41
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CHAPTER- ONE
INTRODUCTION
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To analyze the financing system of the Bank and find out whether the bank needs any
improvement.
To find out the contribution of private commercial banks for the economic
development of the country.
Some data are collected from officials and some data are collected from client.
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It was very different to collect the information from various personnel for the job
constrain.
Bank policy was not disclosing some data and information for obvious reasons.
Due to time limitation many of the aspects could not be discussed in the present
report.
Since the bank personnel where very busy, they could provide me little time.
Another significant problem faced during the preparation of this report was the
contradictory explanation of a single subject by different employee.
Because of the limitation of information some assumption was made. So there may be
some personal mistakes in the report.
The time 2 months out of 3 months only, which is in sufficient to know all activities
of the branch are prepare the report.
The insufficiency of information was not adequately available. Moreover, the sources
were hazardous and in-discipline. Therefore the providence of insufficient
information came out as a constraint.
Long internship was not able to provide us with adequate time to impose more
databases sophistic to the formulation of this report.
During the internship, in many part of our enquiry, our performance was hindered by
some sort of inexperience of some of the personnel of the bank due to lack of
orientation to the procedure of such internees.
There was no remuneration for our internship that demoralizes our motivation to keep
consistency in our extensive study.
Sometimes we had to face unexpected conduct on the part of some of the personnel
that was supposed to be a little bit more cordial.
Another Problem was time constraints. The duration of my work was only three
months. But this time is not enough for a complete and fruitful study.
The Bank was a busy one having heavy rush of people, whom officers need to deal
with. So allocation of time for an internet is very much tough for the officers of the
bank.
Although there are a lot of limitations, I have tried to put my best effort as far as
possible to prepare the report.
To build professional carrier in the banking sector as well as any financial institution.
Bangladesh- A case study of Dutch-Bangla Bank Ltd (Elephant Road Branch), Dhaka.
1.10 ORGANIZATIONAL PERSPECTIVE
Dutch-Bangla Bank Ltd. (DBBL) is the first Bangladesh- European joint venture
commercial bank incorporated on July 04, 1995 under the Companies Act 1994. It is a public
company limited by shares. With the permission of Bangladesh Bank, it commenced its
commercial banking operation on June 03, 1996. The head office of Dutch-Bangla Bank Ltd
is at Sena Kallyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka-1000. DBBL conducts all
types of commercial banking activities and renders all types of personal and corporate
banking services to the customers of all strata of the society within the framework of Bank
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CHAPTER- TWO
BACKGROUND OF THE HISTORY
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Traveler Cheques
Financial Services
Corporate banking
Information Technology
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Human Resource
CHAPTER-THREE
GENERAL BANKING SERVICE OF DBBL
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118/3,Dr.
Kudrat-E-Khuda
Phone No :
(8802)8631875, 9675498
Mobile No :
01713049306
Fax No :
(8802) 8653545
E-mail :
dbbl_br126@dbbl.com.bd
Manager in Charge :
Manager's Designation:
Opening Date :
07-12-2005
Number of ATMs :
64
10:00 AM To 04:00 PM
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Road,
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Overdraft facility
A person can open a current account or any entity the entry can be a partnership firm, Ltd,
company, proprietorship firm, association, clubs etc. for opening a current a/c of the above,
the requirements and steps, which are followed by this branch are the following
For a person:
There is an individual application from for opening personal current account. The person,
who wants to open this type of a/c, is said to fulfill the following requirements:
Occupation
Mandate in writing
Letter of introduction
Introducer
Specimen signature
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Filled up application from stating about the name and address of the firm.
Partnership deed.
Trade license.
Undertaking / declaration about the partnership is taken by the bank in a write paper
( for proprietorship firm)
True copy of memorandum of association and articles association abide by the law.
In order to open an account, the customer is first of all asked to fill up the application
form given from the bank. The bank requires few documents of the client due to the
procedure, such as proposal for opening an account, name and full address,
occupation.
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Occupation.
Mandate in writing.
Letter of introduction.
Power of attorney.
Specimen signature.
In this, the deposit supplied with the pass and checkbook for depositing and
withdrawal purpose of money for which the banker maintain saving bank a/c opening
register.
Excel Account:
DBBL offers another type of account called Excel account. This account is applicable only
for students. This account has given the opportunity for the student with minimum charges tk
only 230 per year. The branch Code of Elephant road is 171 and the excel account code is
105. In other types of account like Savings, Current these accounts the yearly charges is high
but in this excel account or student account has given more facility to the customers. But one
disadvantage in this account that is no cheque book will be given to the customers .The
account procedure all are same but here, the student Id must be shown to the officer.
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Applicants two copies of passport size photographs from individual are taken.
Applicants must submit their citizenship certificates: valid passport or NID copy or
S.S.C registration card.
Introducers signature and accounts number and A/C name verified by legal officer.
Applicant also submit a copy of utility bill that means Electricity bill or Gas bill or
Water bill for mention the present address.
Power A/C:
The Power account also name is called salary account .The person who are involved with
service they can open salary or power account. Elephant Road Branch they are linked up with
different organization to open a power account. They are also linked up with UIU. The code
of power account is 103.
Requirement for opening Power A/C
Applicants two copies of passport size photographs from individual are taken.
Applicants must submit their citizenship certificates: valid passport or NID copy or
S.S.C registration card.
Introducers signature and accounts number and A/C name verified by legal officer.
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Crediting interest
Crediting interest implies that so for interest accrued is attached with the principal amount. In
practice of DBBL
a.
b.
c.
Tax
Whatever the amount of interest is accrued 10% tax is debited from the account at the time of
crediting interest.
Inward Clearing:
When a particular branch receives instruments which on them and sent by other member bank
for collections are treated as inward clearing.
Clearing house
Clearing House is a place in the Central Bank where different banks come to settle their
interrelated liabilities. Clearing House System The mechanism of working at a Clearing
House in general is as follows:
Every Rank of the locality, which is a member of (he clearinghouse, prepares Bankwish list of cheques after receive from customers and drawn on different Banks of the
locality.
An officer, in charge of clearinghouse, goes to the clearinghouse in the morning with
the cheques and their list. He delivers the cheques to the officials of the respective
banks. Similarly, he also receives the cheques drawn on his Bank from the officials of
Bank alter taking into account the various amount of receipt and payment.
The official return of their respective Dank to meet again in the afternoon to return
In case of a deposit in joint name, DBBL also takes the instructions regarding
payment of money on maturity of the deposit.
An FDR is then issued to the depositor acknowledging receipt of the sum of money
mentioned therein. It also contains the rate of interest & the date on which the deposit
will mature.
For FDR which are 3 months maturity no interest will be payable at premature
encashment, only the principle amount will be refunded.
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When premature encashment is allowed of and FDR with tenure of over 3 months,
interest will be paid if enchased before expiry of 6 months at the rate of 3months
prescribed interest rate.
Premature encashment is allowed of and FDR with tenure of over 6 months, interest
will be paid if enchased before expiry of over 12 months at the rate of 6 months
prescribed interest rate and the same theory will also be applicable for premature FDR
encashment of 2 years and 3 years.
The interest offered for STD is less than that of savings deposit.
In practice, DBBL offers 5.00% rate of interest (half yearly compounding) for STD
account. It may increase depending on the fund.
PERIOD
INTEREST RATE
1 month (MTD)
5%
3 months
5%
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7%
7%
Figure: Data of March 2015
Lost of FDR:
If the instrument is lost from the possession of the holder, the holder is asked to fulfill the
following requirements:
Party should inform it to the bank immediately;
Furnish an Indemnity Bond;
On fulfilling the above requirements, a duplicate FDR is then issued to the
customer by the bank.
Renewal of FDR:
FDR is automatically renewed within seven days after the date of its maturity if
the holder does not come to en-cash the instrument.
Renewal will be for the previously agreed maturity period.
Loan Products
Current Deposit
Secured overdraft
Savings Deposit
General Loan
Term Deposit
Foreign Currency
Deposit
Staff Loan
Investment
/ Finance
Credit
Card Corporate
Services
Finance
Industrial
Debit Card
Finance
Project
Remittance
Finance
Pay order
Transport Loan
Master card
Services
Consumer Credit
SWIFT
Bill Purchase
Locker Facility
Debit Cards
DBBLs card issuing portfolio is enriched with both debit and credit cards of various card
brands. DBBL is pioneer in issuing debit cards in Bangladesh. The first debit card of the
country, the Nexus debit card was issued on August 14, 2004. Since then DBBL has been the
market leader with the largest debit card base. DBBL issues both EMV compliant multiapplication enabled smart card and traditional magnetic stripe PIN-protected debit cards. The
MV debit card consisted of Dynamic Data Authentication (DDA) chip and Multos operating
system. It ensures additional software level security for chips.
DBBL-NEXUS Instant Debit Card
DBBL-NEXUS VISA Electron card
DBBL-NEXUS Maestro card
Customers are no longer required to wait for their debit cards after opening an account with
Dutch-Bangla Bank. Now customers instantly get their Dutch Bangla Bank nexus debit cards
along with PIN after opening an account in any Dutch Bangla Bank branch. DBBLs card
issuing portfolio is enriched with both debit and credit cards of various card brands. DBBL is
pioneer in issuing debit cards in Bangladesh. The first debit card of the country, the Nexus
debit card was issued on August 14, 2004. Since then DBBL has been the market leader with
the largest debit card base. It is a traditional magnetic strip based card. Moreover, a customer
can get instant replacement of his/her lost or damaged debit cards. This reduces customer
hassle and brings additional satisfaction to them. All transactions of Nexus Instant cards are
secured with PIN. This card can also be used in all Dutch Bangla Bank ATMs, POS terminals
and Dutch Bangla Bank Nexus Payment Gateway (for e-commerce shopping).
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DBBL issues international debit cards either MasterCard or Visa. As per Bangladesh Banks
circular, an international card can be issued against customer foreign currency account like
Resident Foreign Currency Deposit (RFCD) account, Foreign Currency (FC) account or
Exporter Retention Quota (ERQ) account.. These cards consist of both EMV chip and
Magnetic stripe for wider acceptance and cannot be used locally. This card can be issued for
any VISA card accepting POS terminal or ATM. Since this card is EMV compliant chip based
card, the transactions of this card are more secured which protects cardholders by preventing
copying of card data and ensures a liability shift benefit which protects cardholders in nonEMV terminals.
Issuance Fee (1st Year): USD 17.25 (Including VAT)
Annual Fee (2nd Year Onwards): USD 17.25 (Including VAT)
DBBL issues EMV chip enabled debit cards of MasterCard known as MasterCard Debit
cards. This card can be issued for both local and international use. This card consists of both
EMV chip and Magnetic stripe for wider acceptance. If the terminal supports EMV, chip
transaction takes place. If the terminal does not support EMV, transaction will be completed
using the magnetic stripe of the card. However, customer will be protected for any dispute if
the mag stripe of the card gets compromised and any fraud transaction happen with the
counterfeit card. This card can be issued for any MasterCard accepting POS terminal or ATM,
and can be used for e-commerce transactions as well.
Issuance Fee (1st Year): BDT 575 (Including VAT)
Annual Fee (2nd Year Onwards): BDT 575 (Including VAT)
Credit Cards
DBBL has been issuing Visa EMV credit cards since November 2008 and MasterCard EMV
credit cards since April, 2010. Although DBBLs entrance in credit card services was delayed,
it made a difference in the market by issuing the most secure EMV credit cards from the first
day. The EMV credit cards consist of Dynamic Data Authentication (DDA) chip and Multos
operating system. It ensures additional software level security for chips. Due to security, other
card-issuing banks in Bangladesh usually block customers International transactions and
require the customer to make prior phone calls to the card-issuing bank to open international
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DBBL issues EMV enabled MasterCard credit cards to its customers. All cards have DDA
chip with Maltose application, which protect them from any alternation of card data and
ensures secure
Transactions worldwide on any MasterCard accepted POS terminals and ATMs. This card has
both chip and magnetic stripe so acceptability is not restricted to any type of terminals.
DBBL issues both standard and gold cards with local and international acceptability.
Customers have the option to select as per their requirements.
DBBL has launched MasterCard Titanium in Bangladesh for the first time. With this stylish
Chip credit card, customers may enjoy exclusive benefits, experiences and lifestyle
privileges; including access to entertainment, sport, electronics and much more. The
MasterCard Titanium Credit Card opens up a world of convenience, safety, and simplicity.
With access to over 30 million merchants across the globe, it offers an excitingly diverse
range of shopping, dining and travel experiences to enrich the lifestyle including airport
lounge facility and priority pass.
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Dutch Bangla Bank issues EMV enabled Visa Gold International credit cards. The card
consists of DDA chip with Multos application, which protects them from any alternation of
card data and ensures secure transaction on any Visa accepted POS terminals and ATMs
worldwide. It can also be used for ecommerce transactions. This card has both chip and
magnetic stripe so acceptability is not restricted to any type of terminals. You can avail
supplementary card at absolutely free of cost. Moreover, no cash advance fee is applicable for
cash withdrawal at Dutch Bangla Bank ATMs.
Credit Limit: BDT 100,000 to BDT 500,000
Virtual Card
Students pursuing higher education and/or scholarships abroad are often required to pay the
fees and charges online using a credit card. Students are also required to take various
examinations such as IELTS, TOEFL, GMAT, GRE - all of which require them to register
online for paying fees and charges with a credit card. Most students and their guardians
however are not eligible to have a credit card from a bank and thus do not have one. To help
them, DBBL introduced Virtual Card for the first time in Bangladesh in 2011. This is not a
plastic card - it is a piece of paper inside a closed envelop which carries valid card number,
expiry date and CVV/CVC which can be used for some specific internet merchants related to
educational / certifications authorities. The virtual card is distributed from DBBL branches
and the value is fixed as per the requirement of the students. The DBBL Virtual Card has
become very popular amongst students.
Internet payment
On 3 June 2010, Dutch Bangla Bank Ltd. announced to allow internet payments system.
Using their Internet Payment Gateway merchants will be able to charge their customers' Visa,
Masters, DBBL Nexus and Maestro cards. Any Visa/MasterCard cardholder (local or
overseas) can use their cards to pay at a number of e-Merchants against their purchase of
goods. They can also pay DESCO electricity bills. DBBL is working with airlines, railways,
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Eligibility
Applicants must be passed SSC or Equivalent exam in 2013. Applicants must have GPA 5.00
for under city corporation area School/Institute, GPA 4.70 for under district area
School/Institute and GPA 4.50 for others remote area students (without 4th subjects) out of
GPA 5.00 scale for all groups.
Facility
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CHAPTER-FOUR
CREDIT MANAGEMENT OF DUTCH-BANGLA
BANK LTD
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Risk
Time
Interest rate
Security or Collateral
Operating Expense
Legal Considerations
Inflation
Finance Charge
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The required documentation that is to accompany each loan application and what must
be kept in the Bank's credit files (required financial statements, security agreements
etc.)
Lines of authority within the bank regarding who is responsible for maintaining and
reviewing the Bank's credit files.
Guidelines for taking, evaluating and perfecting loan collateral.
A presentation of policies and procedures for setting loan interest rates and fees and
the terms for repayment of loans.
A statement of quality standards applicable to all loans.
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Step-7
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Step-8
If the proposal meets DBBL's lending criteria and is within the manager's discretionary power,
the credit line is approved. The manager and the sponsoring officer sign the credit line
proposal and issue a sanction letter to the client. If the value of the credit line is above the
branch manager's limit then it is send to head office or zonal office for final approval with
detailed information regarding the client (s), credit analysis and security papers.
Step-9
Head office processes the credit proposal and afterwards puts forward an office notice if the
loan is within the discretionary power of the head office credit committee or board
memorandum if the loan requires approval from the board of directors.
Step-l0
If the zonal office, credit committee of the head office or the board as the case may be
approves the credit line, an approval letter is sent to the branch. The branch then issues a
sanction letter to the borrower with a duplicate copy. The duplicate copy duly signed by the
borrower is returned to the branch of the bank.
Step-11
After issuing the sanction advice, the bank will collect necessary charge documents.
Charge documents vary on the basis of types of facility, types of collateral.
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In which sector, private or public, trading or industrial, the loan will be given; The loan will be
short term or long term. A manager will do the possible efforts to minimize the risk of the
Bank.
4.7 GENERAL PROCEDURE FOR LOANS AND ADVANCES
Character: The loan officer must be convinced that the customer has a well defined
purpose for requesting credit and a serious intention to pay. Responsibility,
truthfulness, clean past record, true purpose and honest intention to repay the loan
make up what a loan officer calls character.
Capacity: The customer requesting credit must have the authority to request such and
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Purpose of loans
Security arrangements
Borrower analysis
Industry analysis
Supplier/ Buyer analysis
Historical financial analysis
Projected financial performance
Account conduct
Adherence to lending guidelines
Mitigating factors
Loan structure
Security
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Fig:
Loan
a regular basis, and any covenant breaches or exceptions are referred to CRM
and the RM team for timely follow-up.
Timely corrective action is taken to address findings of any internal, external
or regulator inspection/audit.
All borrower relationships/loan facilities are reviewed and approved through
the submission of a Credit Application at least annually. Two possible
solutions to minimize the credit loss:
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expected losses.
Regular review of grade 9 or worse accounts.
The loan classification procedure for all types of loan is governed by the guidelines
contained in BRPD Circular no 16 dated 06.12.98 issued by Bangladesh Bank and
subsequently revised partially through BRPD Circular no 9 and 10 dated 14.05.2000,
According to this circular if any borrower fails to repay his amount or installment within the
following time period then it will fall under the following classification status.
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CHAPTER- FIVE
RISKS ASSOCIATED WITH CREDIT
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TO IDENTIFY
TO MEASURE
TO MODIFY
TO MANAGE
TO MONITO
Analyze
Prepare financial spreadsheet
Analyze spreadsheet
Ratio
rview management to assess their ability and integrity view the security from your own impressions of c
Prepare supplementary
Purpose of loans
Security Arrangements
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CHAPTER- SIX
RECOMMENDATION & CONCLUSION
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6.2 RECOMMENDATION
During the internship, I found that the bank provides all the conventional banking services.
Now, I would like to present my observations and give my opinion to improve the banking
service of DBBL.
The bank should appoint sufficient manpower to get works done in due time
so that it can possible for officers to do their works in an organized way and
Customer also get proper query from Bank.
Their employee is not expert so the customer dissatisfaction is arising day by
day.
Information flow is a big issue now a days because one positive information
may be profitable for banking business so whatever client or not Banker should
provide the correct information that help client to invest in a bank. To avoid
excessive query its time to introduce call center for DBBL which provide 24 hour
service to clients.
While the other banks are launching Consumer Credit Scheme DBBL Bank
is failing to launch this kind of scheme. The management can undertake such sort
of schemes and earn profit.
The bank should provide total investment money at once to the clients so that
they can exploit money properly.
DBBL should provides facilities to the internees through monthly allowance,
proper placement and practical operations as well as job certainly to those who
have shown better performance in doing their particulars. Because this internship
program may act as promotional program.
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6.3 CONCLUSION
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II.
III.
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