Overall Banking Activities of IFIC Bank Limited
1.1 Introduction to the topic in Hand The commercial banks have been playing a commendable role in achieving the economics of growth Bangladesh. Default culture in many of the banks is a chronic problem. With the recent market economy concept, introduction of modern technology of banking sectors, there is severe competition in the world – banking environment. This also requires prudent use of bank fund through developing strategic plans & policies based on modern information technology & global knowledge. The most significant achievement of the financial sector reforms has been the marked improvement in the financial health of commercial banks in term of capital adequacy, profitability and asset quality as also greater attention to risk management. Further, deregulation has opened up investment banking, insurance credit cards, depository services, mortgage financing etc. At the same time, liberalization has brought greater competition among banks, both domestic and foreign. Positive fallout of competition is the greater choice available to consumers, and the increased level of sophistication and technology in banks. As banks increase in disclosures and transparency in bank balance sheets as also greater focus on cooperate governance. 1.2 Brief Introduction to the Organization International financial investment and commerce (IFIC) bank limited started banking operations on June 24, 1983. Prior of that it was set up in 1976 as a joint venture finance company at the instant of the government of the peoples republic of Bangladesh. Government then held 49 percent shares while the sponsors and general public held the rest. The objectives of the finance company were to establish venture banks finance companies and affiliates abroad and to carry out normal functions of a finance company at home. When the government decided to open up banking in the sector in 1983 the above finance company was converted a full-fledged commercial bank. Along with this the government also allowed four other commercial banks in the private sector. Subsequently the government denationalized two banks which were then fully government-owned. while in all these banks government is holding nominal 5 percent shares, an exception was made in the case of the bank. It retained 40 percent shares of the bank. The decision by the government to retain 40 percent shares in IFIC bank was in pursuance of the original Objectives, Namely, Promotion of the participation of government and private sponsor to establish joint venture banks shares is owned by the people republic of Bangladesh. Moreover 11.42% is owned by the board of directors and rest is owned by the share holders human resource development.