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View with images and charts Sme Banking of Brac Bank Limited

Chapter -1 Introduction 1.1 Introduction SME is new challenge to every bank. The success or failure of banks greatly depends on SME loan. On the other hand, credit (whatever general or SME) perchance falls in hands of defaulter imposing colossal stress on money supply with many other concomitant side effects. Against such a backdrop, banks will have to strike a delicate balance on the seesaw, so smooth credit circulation in economy can be ensured in order that rural and urban development work does not suffer, and at the same time credit must not get into a noxious nexus. Every bank maintains a credit system to manage its credit. Compliance with some standards in credit management has been critical for banks to avoid both pecuniary as well as regulatory penalty. This paper attempts to impart insight on the credit management, especially on SME of banks. It shows fundamental credit risk policies and challenges to SME credit. It also shows the guidelines that should govern the implementation of more detailed lending procedures and risk grading systems so that, subsequently, banks can establish the balance between healthy flows of credit in economy simultaneously with saving itself from the loss of bad debt. As well as bank can maintain proper SME lending for development of rural and urban area. SME concept is explored at length due to its far-reaching contribution in our economy particularly in elimination of penury. Then it features the risk of credit for banks, Bangladesh Bank’s prescriptions on its handling and method of risk measurement and loan classification. With a brief introduction to BRAC Bank Limited, the report details thoroughly on the SME credit appraisal, processing and disbursement. These are very vital for vigilance yet vulnerable to overlook. The paper ends up with recommendations of do’s and don’ts.

1.2 Statement of the Research Problem: A bank’s existence depends mainly on SME loan. BRAC BANK is one of the leading banks for loan lending. But the bank faces a lot of problems about SME loan, which are mention below: 1) Before lending the lacking of properly analyzes the business risk of the borrowers and bank can not forecast whether there the business will succeed or fail in broad investigation. 2) Bank is not performing well in good loan project selection, because of pressure from lobbing group. 3) In most of the cases, bank fails to determine the value of security against the loan. 4) Sometimes delay in disbursement credit. 5) Negative attitude of borrowers to repay the loan. 1.3 Objectives of the Study The sensible motives of preparing the report on SME Banking are to depict the overall scenario of banking sector at a glance with the light of BRAC Bank. The prime objectives of this study are to analysis SME Banking in Bangladesh on perspective of BRAC Bank for building Strong image of SME. Specific Objectives:  To explain the unique brand image of SME.  To represent the unique features provided by BRAC Bank to its SME clients and how they perceived those.  To find out the factors on which the customers’ satisfaction level depends.  To suggest ways of improving the service standard and satisfaction level of the customers.  To show the real condition of BRAC Bank Limited in terms of SME credit in Bangladesh.  To appraise the competitive position of BRAC Bank Limited.  To create myself as a young Entrepreneur to become a future leader of SME Banking.  To identify problems and potentials and provide some suggestions that would help BRAC Bank Limited for more progress on SME credit. 1.4 Methodology of the study Collecting data directly from the practical field is called primary source of data. In this case samples were picked up on a judgmental basis. The methods that were used to collect the primary data are as follows: •

Face to face conversations with the employees and opportunities were given by the management to work in relevant fields in BBL.

By personal interviewing and interacting customers at BBL and officials of other competitive banks.

Observing various organizational procedures.

Various unstructured papers and weekly report of the bank

Interviewing other banks personnel

The secondary data has been collected from different publications of BRAC Bank. To clarify different conceptual matters, Internet and different articles published in the journals & magazines have been used. The Secondary Sources are: Secondary data were collected •

from prior research report

from different books and periodicals related to the banking sector

From Newspapers and Internet.

Annual reports of BBL.

Publication of Bangladesh bank

In processing the data and presenting these tables and graphs has been used. SWOT analysis has been used as analytical tool. It is rarely involves structured questionnaire, large sample and probability sampling plans. Observation method is used in some cases to complete the paper.

Chapter -2 2.1. The Historical Background BRAC Bank LTD:

BRAC Bank Limited is a scheduled commercial bank in Bangladesh. It established in Bangladesh under the Banking Companies Act, 1991 and incorporated as private limited

company on 20 May 1999 under the Companies Act, 1994. The primary objective of the Bank is to provide all kinds of banking business. At the very beginning the Bank faced some legal obligation because the High Court of Bangladesh suspended activity of the Bank and it could fail to start its operations till 03 June 2001. Eventually, the judgment of the High Court was set aside and dismissed by the Appellate Division of the Supreme Court on 04 June 2001 and the Bank has started its operations from July 04, 2001. The Chairman of the Bank is Mr. Muhammad A (Rumee) Ali. Now the Managing Director and & CEO of the bank is Mr. Syed Mahbubur Rahman, Managing Director & CEO. The bank has made a reasonable progress due to its visionary management people and its appropriate policy and implementation. 2.2 Profile of BRAC Bank Limited:

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and 2005. The Bank operates under a "Double Bottom Line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh. A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last ten years of operation, the Bank has disbursed over BDT 2 billion in loans to nearly 83,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, BRAC Bank becomes one of the country's fastest growing banks with 151 branches, over 250 ATM's, 421 SME Unit Offices and over 8,183 employees. BRAC Bank operation now cuts across all segments and services in financial industry. The bank has already proved to be the largest SME Financier in just ten years of its operation in Bangladesh and continues to broaden its horizon into Retail, Corporate, SME, Probashi and other arenas of banking. The customer base has expanded to 1200,000 deposit and 164,000 advance accounts. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs.

BRAC Bank limited has wide distribution coverage across Bangladesh in SME business. Being the pioneer, BRAC bank limited still holds the ‘number one’ position in SME business in 2010 alone we distributed loans to 83,000 Small and Medium Entrepreneurs’ amounting to BDT 32,188.26 million. Shareholders of BRAC Bank Limited

Figure: Share holders contribution 2.3 GOAL BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprises throughout Bangladesh. It will be a world - class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.

2.4 Vision "Building a profitable and socially responsible financial institution focused on Markets and Business with growth potential, thereby assisting BRAC and stakeholders build a "just, enlightened, healthy, democratic and poverty free Bangladesh". BRAC Bank will be a unique organization in Bangladesh. It will be a knowledge-based organization where the BRAC Bank professionals will learn continuously from their customers and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate and break barriers to serve customers and create customer loyalty through a value chain of responsive and professional service delivery. Continuous improvement, problem solution, excellence in service, business prudence, efficiency and adding value will be the operative words of the organization. BRAC Bank will serve its customers with respect and will work very hard to instill a strong customer service culture throughout the bank. It will treat its employees with dignity and will build a company of highly qualified professionals who have integrity and believe in the Bank’s vision and who are committed to its success. BRAC Bank will be a socially responsible institution that will not lend to businesses that have a detrimental impact on the environment and people.

2.5 Corporate Mission » Sustained growth in 'small & Medium Enterprise' sector » Continuous low cost deposit growth with controlled growth in Retained Assets » Corporate Assets to be funded through self-liability mobilization. Growth in Assets through Syndications and Investment in faster growing sectors. » Continuous endeavor to increase fee based income » Keep our Debt Charges at 2% to maintain a steady profitable growth » Achieve efficient synergies between the bank's Branches, SME Unit Offices and of BRAC field offices for delivery Remittance and Bank's other products and services » Manage various lines of business in a fully controlled environment with no Compromise on service quality

» Keep a diverse, far flung team fully motivated and driven towards materializing the bank's vision into reality 2.6 Core Values -CRYSTAL C stands for being Creative, Be a person of innovative ideas in solving issues, thinking different ideas to reach one destination; do new associations between existing ideas or concepts for the organization’s overall growth. R stands for being Reliable, Be worthy of reliance or trust at work so everyone could depend on you. Y stands for remaining Youthful, Be a person of freshness and vibrant characteristic at work. Feel young at HEART and project enthusiasm during performing duties. S stands for being Strong; Be a person of willing to move forward and apply conscious choice, willpower, discipline and passion at work. T stands for being Transparent, Be transparent at work at all level both internally and externally. Show openness and honesty through communication to bring transparency A stands for being Accountable, Be accountable for own actions and take responsibilities for the outcome of the actions; be responsible and answerable towards customers, organization, regulatory bodies as well as the society. L stands for being Loyal, Be loyal to the organization by being compliant at work, taking ownership and create belongingness which will carry your brand as your pride. 2.7 Long Term Strategy: Summed up in a single sentence, BRAC Bank’s long-term strategy is to go where the market is. The SME market in Bangladesh is large. The report produced by the Shore Bank team, (Ronald Grzywinsky, Mary Houghton and Lynn Pikholz) and the independent consultant, Kaiser Zaman, indicates that the market size would be over hundreds of billions of taka. He quoted: “As a result of the achievements of the micro-credit providers, Bangladesh now has an hour glass shaped banking market in which credit and other limited financial services are valuable to both very large and very small businesses and very wealthy and very poor individuals. While there is well – known informal system that provides credit to businesses, virtually nothing is available from either banks or micro finance provider to the million the middle – businesses and individual- who are severely constrained in their ability to produce and save for lack of access to financial resources and services. Until modern, competitive financial services are readily available – including credit in amounts, terms and conditions that small can access, Bangladesh will not be able to create the large middle class that is a prerequisite to social stability. 2.8 Corporate Social Responsibility (CSR) of BRAC Bank:

Since the inception as a responsible corporate body BRAC Bank Ltd. has undertaken various initiatives considering the interest of customers, employees, shareholders, communities and environment. These initiatives go beyond the statutory obligation/mandatory compliances to voluntary activities that promote sustainable development. Corporate Social responsibility (CSR) is a fundamental part of the way BRAC Bank does business. It’s an opportunity to build better relationships with all stakeholders by paying closer attention to how we fulfill our social, economic, environmental and ethical responsibilities. We are working towards reducing waste and the more efficient use of resources. The second step is reducing our indirect environmental impact by managing our investing activities. Paper communication between the divisions/Customer centers of BRAC Bank has been replaced with on-line communication where possible, resulting in significant reduction in paper usage. 2.9 Management of BRAC Bank Limited The Board of Directors of BRAC Bank Limited includes:

Mr. Muhammad A (Rumee) Ali


Mr. Quazi Md. Shariful Ala


Mr. Mark A.Coffey


Ms. Nihad Kabir


Ms Tamara Hasan Abed


Mr. Shib Narayan Kairy


Dr. Hafiz G.A. Siddiqi


Mr. Syed Mahbubur Rahman

Managing Director and CEO

Members of BRAC Bank Limited Management Committee




Mr. Mohammad Rashid



Mr. Rais Uddin Ahmad

Managing Director & CEO Deputy Managing Director Company Secretary & Head of Legal, Regulatory & Internal Control

Mr. Nabil Mustafizur Rahman Ms. Tahniyat Ahmed Karim

Chief Credit Officer Head of HR Head of Operations& Acting Head of

Mr. Shah Alam Bhuiyan Operational Risk Management Mr. Mohammed Rahmat Pasha

Head of Treasury & Financial Institutions

Mr. Syed Faridul Islam

Head of SME

Mr. Khwaja Shahriar

Head of Custodial Probashi Banking





Cash Management Services

Head of Corporate Affairs

Mr. Md. Sarwar Ahmed

Head of IAM – SME & Retail Banking

Mr. Firoz Ahmed Khan

Head of Retail Banking

Chapter -3 Products and Services of BRAC Bank Ltd.

3.1 Products of BRAC Bank Limited A. Small & Medium Enterprise (SME)

BRAC Bank becomes one of the country's fastest growing banks. With 70 branches, 59 SME Sales & Service Centers, over 195 ATM's, 429 SME Unit Offices and over 7,000 employees. .These CROs work for the Bank to converge clients for getting the SME loan. Once CROs get the loan application and if it is less than 500,000 TK then zonal officer has the authority to approve the loan. But if it is above 500,000 then the CROs send it to Head Office for all necessary approval. After approving the loan then Asset Operation Department starts its work. In 2010, BBL alone distributed loans to 67,047 Small and medium entrepreneurs’ amounting to BDT. 32,188.26 million; in 2010, Bank also open 29 SME Service Centers.. SME division maintains a portfolio of 259,799 small and medium Entrepreneurs with BDT 111,917.87 million. Last year disbursed BDT 32,188.26 million to 67,047 SME clients. SME Products

Deposit Products Prapti Current Account Loan Products Anonno Rin Prothoma Rin Trade Plus Business Equity Loan Proshar Rin Bizness Loan Suppliers Finance

SME Loan process flow is shown below: When a customer comes to the unit office for a loan request, first he/she meets with the customer relationship officer to discuss about the loan, which loan product is suitable for him/her. After then the following process takes place:

Customer Relation Officer

SME Business Division

Asset Operation

SME Credit

Final Loan Approval

B. Corporate Banking Categories- the facilities our corporate Division offers to our customers are mainly of twoFunded Facilities

Non-Funded Facilitie

Funded Facilities: Funded tells us that this type of facilities allows the customer to have money ‘on his hand’ for use i.e. he will get money as to meet his business demand. Examples areWorking Capital Loan. Over Draft Facility. Term Loan. Lease Finance. Demand Loan. Non-Funded Facilities: Non-Funded facilities are those type of facilities where customers don’t get fund on their hand rather get Bank’s Guarantee service to do international trading-import and export. Letters of Credit, Bank guarantees etc. are the examples of the non-funded facilities. Working Process of corporate wing: C. Retail Banking Retail Loans are consumers’ loan. Based on the customer demand these loans are given. BRAC Bank has a wide range of retail loan1. 3. 5. 7. 9.

Car Loan. Secured Loan/OD. Top Up Loan. Study Loan. Now Loan.

2. Doctor’s Loan. 4. High Flyer Loan. 6. Credit Card Loan. 8. Teacher’s Loan. 10. Salary Loan.

Process Flow of Retail Loan Branch/ Sales Officer

Retail Business Division

Credit Manager

Asset Operation

Final Loan Approval

BRAC Bank’s Retail Division is being operated centrally. Under the Retail Banking Division all the branches, which acts as sales & service center, are reportable to Head of Retail Banking. Different products of Retail Banking are as follows: i) ii)

Deposit Products Lending Products


Locker Services


Remittance Services etc.

3.2 Services of BRAC Bank Limited Banking Services Department under BBL Operations has been created with a vision of providing one stop banking services to our internal & external customers by ensuring service excellence and accelerating the efficiency through experienced and competent human capital and using advanced technology. Under the Operations umbrella Banking Services Department facilitates the specific services focusing on a particular activity, eagerness to take challenges and develop expertise in it, which in turn augment the service quality, reduce turnaround-time (TAT) and give a competitive edge. Key values …… •Provide competitive banking service to our customers. •Support business to increase portfolio •Ensure control & compliance •Develop skilled people •Cost leadership b) Corporate Banking Services: The Corporate Banking Division has a centralized structure through on-line banking system. Any credit facility is processed at the Corporate Banking Division, Head Office. After sanctioning of the facility, the limit is put online and The customer can enjoy the facility from any of the BRAC BANK branches.

A fully operational commercial Bank, BRAC BANK focuses on perusing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country, the Bank has provide support to more than 200000 Small and Medium Enterprise. Since inception in July 2001 the bank’s footprint has grown to 69 branches, 59 SME Sales Center, 429 unit offices and more than 177+ ATMs across the country. The banks operate under a “double bottom line” agenda where profit and social responsibility to hand in hand as it strives towards a poverty free, enlightened Bangladesh. BRAC BANK Limited, with institutional shareholding by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing bank for last several years. Strict adherence to internal control guidelines and other legal and statutory compliance are followed. The Credit approval process involves separate Credit Division, the Managing Director and finally the Board. Other Departments such as Foreign Trade, Treasury, Asset Operations etc. plays the support role for a comprehensive range of service to the Corpora b) Other Banking Services: BRAC BANK provides a comprehensive range of innovative corporate financial solutions tailored to suit each company’s needs. At the center of client’s relationship with BRAC BANK is an experienced and professional Management team with extensive industry knowledge. The Relationship Management team works closely with the client to understand and solve the financial requirements of the company. Our knowledge about various industry sectors encompasses global issues, the dynamics of the economy’s effect on the industry and business cycles and insight into market activity within this industry. Following are some of the products that we offer our corporate clients: 


Short term Loans

Mid Term Loans

Long Term Loans

Letter of Credit





Lease Financing, Work Order Financing, Floor Financing, Channel Financing

3.4 Achievements: •

Fastest growing bank in the country for the last four years

Leader in SME financing through 7000 offices.

Biggest suit of personal banking & SME products.

Large ATMs (Automated Teller Machine) & POS (Point of Sales) network.

SME Banking Division is a business division of BRAC Bank Limited that deals with Small and Medium sized Entrepreneurs involved in different types of business. The loan products offered by SME Banking Division are ANONNO, APURBO, AROGGO, Prapti current account, DIGOON RIN, SUPPLIER FINANCE, PROTHOMA RIN, PROSHAR, BIZNESS LOAN, TRADE PLUS and Business equity loan. The SME loan range is from BDT 3 lac to BDT 50 lac (Funded: BDT 3 lac to BDT 50 lac), Non Funded: BDT (1 lac to BDT 30 lac). SME banking division offers Term loan, Continuous (Cash covered) loan and Letter of Credit. Short Term: up to 9 months, Long Term: from 12 to 60 months. If the loan amount is more than BDT 50 lac and then SME Banking refers it to Corporate Banking another business division of BRAC Bank. It is compulsory for a borrower to have a current A/C either with BBL or with a correspondent bank branch if there is no BBL branch in the locality. The City Bank Ltd, Janata Bank, Bangladesh Krishi Bank, Pubali Bank Ltd, Agrani Bank and Rupali Bank Limited are the correspondent banks of BRAC Bank. Bank transaction record is mandatory for Bizness Loan & Trade Plus only. The SME loans are usually given for working capital finance, fixed asset finance and trade finance. Loan amount is decided based on the fund requirement calculation, not on the basis of collateral value. However, Lawyer’s opinion is necessary for mortgage purpose. Registry Mortgage is necessary generally when the loan amount is BDT 10 lac or more. Working capital financing cannot be more than 75% of the total of the average regular receivables and average inventory. Fixed asset finance cannot be more than 90% of the purchase price, but the debt equity ratio in fixed assets investment in the projected year (after purchase of new fixed assets) cannot be more than 1 (one). A customer can apply for a repeat loan when 80% of the previous loan tenure has passed and made a satisfactory repayment. If all installments are paid on due dates, they will also get a concession on the existing interest rate. Generally, SME only provides business loans in the enterprise’s name. However, loan can be sanctioned in the personal name of the borrowers, if the tenant borrower cannot obtain trade license showing his name as owner of the business due to the conditionality imposed by the market committee/owner.

Fire insurance is mandatory to avail a loan except for a few concerns like poultry, fishery and farming. Our Network and Reach: Today BRAC Bank is considered as a fourth generation bank extending full range of banking facilities by providing efficient, friendly, modern and fully automated online services. In 2010 30 new SME sales and Service centers were opened at the following locations: Gouripur, Sirajganj, Konabari, Pahartoli, Badda, Bagerhat, Bahadderhat, Swarupkathi, Bashabo,panth, Dolaikhal, Gulistan, Hathazari, Hazaribag, Jatrabari, Shampur, Kadamtoli, Karwanbazar,Arihazar, Magura, Mirpur-1, mohammadpur, motijeel, Naogaon, Comilla, Netrokona, Pirojpur, Purana Palton, Bondor And Uttara. At present SME Banking Division have 14 products among which 13 are loan products and one deposit product. SME Credit Model: SME credit risk management is based on Product Program Guidelines (PPG) for each product developed from the board approved policy. BRAC Bank Limited developed & applies inhouse assessment methodologies for evaluating the creditworthiness of the SME borrowers to identify credit risks and establish underwriting standards. 3.5 Units of SME Banking Division: There are 7 business wings in SME Banking Division. 1. General Business Unit 2. Women Entrepreneur Cell (WEC) 3. Large Business Unit (LBU) 4. Manufacturing Business Unit (MBU) 5. Supplier & Distributor Finance Unit (SDF) 6. Commercial Credit Unit (CCU) 7. Vehicle Financing Unit 1. General Business Unit This largest business unit of SME Banking Division has long been providing loans to SME entrepreneurs. Regular business wing offers varying products. SME entrepreneurs mostly require small finance that this business unit has successfully been offering to all level of SME borrowers irrespective of business type. In addition to Small finance this business unit is also offering finance to medium entrepreneurs. 2. Women Entrepreneur Cell (WEC) Women Entrepreneurs Cell (WEC), one of its kinds in the banking industry of Bangladesh, was launched in 2006 under SME Banking Division with an objective to offer access to formal finance along with training and technical assistance to the women entrepreneurs across the country. 3. Large Business Unit (LBU) Large Business Cell started its journey from February 2007. The objective for this unit is to increase the average ticket size of the overall SME portfolio and also to tap the unexplored market.

4. Manufacturing Business Unit (MBU) The Manufacturing Business Unit was launched in August 2007 under SME Banking Division. The objective of launching this unit is to better serve the manufacturing sector by providing sector-focused loan & other services. 5. Supplier & Distributor Finance Unit (SDF) Supplier & Distributor Finance Unit was launched in September 2007 to engine the growth of linkage industry, an indispensable sector for any industry. 6. Commercial Credit Unit (CCU) The Commercial Credit Unit (CCU) was launched in October 2007 with the objective of providing financial services in the Trade Finance sector with pre & post import facilities. 7. Vehicle Financing Unit This newly formed business unit of SME Banking is aimed at financing the commercial vehicles of SMEs. This unit will operate in some selected areas of the country. In addition to the 7 business units there are 2 more units in SME Banking Division. 3.6 Products of SME: Deposit Products "Prapti Current Account" an interest bearing current account. This account ensures the profitable and easy transaction facilities for Businesses.

Eligibility Any institution can open this account in the name of the Institution Opening balance only BDT. 5,000 only. Features

Interest bearing current account

Up to 4% interest on daily balance

FREE Smart ATM Card with BDT-100,000 withdrawn facility (per day) from ATM & BDT- 300,000 from POS

No upfront relationship fees

No inter-city or intra-city online transaction charges

No Relationship fee will be charged if half yearly average is BDT 25,000, along with free cheque book.

Loan Products

Anonno Rin This is a small-scale loan designed to finance small scale trading, manufacturing and service ventures, especially to aid the purchase of fixed assets, and to finance working capital. Eligibility • Entrepreneurs aged between 18 to 60 years • Entrepreneurs with minimum 2 years experience in the same line of business • A business which must be a going- concern with more than 1 year in operation Maximum Amount • From minimum BDT 3 lac up to maximum of BDT 10 lac Features • Loan without mortgage • For excellent borrowers who have paid or are paying in due times, we offer discounted rates • Quick, quality banking throughout the country • Potential women entrepreneurs will also get the facilities of this loan

Loan Study 3 months-9 months 12, 15, 18, 21, 24, 27,

Installment (Principal) Interest Repayment Repayment One single payment at maturity Monthly Monthly installment

Monthly with installment

30, 33, 36 months

Interest rate • 17.8% for New Loan •

17.25% for 1st time repeat (if applicable)

17.00% for 2nd time repeat & so on (if applicable)

Loan processing Fees •

2.5% of base loan amount+ VAT

Security •

Hypothecation on present & future assets, two personal guarantors & post dated cheques

Prothoma PROTHOMA RIN: An asset product offered to women entrepreneurs to expand their businesses. This product’s main objective is to help women entrepreneurs to meet their shortterm cash flow shortages or bridge the fund-flow gaps. Loan Ceiling •

BDT 3 lac to below 10 lac

Tenure •

EMI-12 to 36 months

Single Installment- 3 to 9 months

Interest Rate •


Loan processing Fees •

2.5% of base loan amount+ VAT


Hypothecation on present & future assets, two personal guarantors & post dated cheques

BUSINESS LOAN BUSINESS LOAN: This loan facility caters cash flow requirement of medium sized enterprises located around the unit offices which are at proximity of the BRAC Bank Branches. To avail this loan facility healthy banking track record is required and medium sized entrepreneurs can avail this loan facility against 30% to 50% cash security. Loan Ceiling •

BDT 10 lac to 50 lac

Tenure •

For 10 lac to below 20 lac – 12 to 48 months

For 20 lac to 50 lac – 12 to 60 months.

Loan processing Fees •

1% of loan amount+ VAT for new loan

Interest Rate •


Security •

BRAC Bank FDR (50% of the loan amount for new loan & 30% for repeat loan), Hypothecation on present & future assets, two personal guarantors & post dated cheques

Proshar Rin PROSHAR: Proshar is a loan facility for Small and medium sized manufacturing industries located in the surrounding areas of unit offices across the country. It is primarily meant for working capital finance/ fixed asset purchase for the business. Loan Ceiling •

BDT 3 lac to 30 lac

Tenure •

For 3 lac to below 10 lac -12 to 36 months For 10 lac to 15 lac-12 to 48 months

For above 15 lac to 30 lac – 12 to 60 month

Loan processing Fees •

For 3 lac to below 10 lac -2.5 % of base amount+ VAT

For 10 lac to 30 lac-1 % of loan amount+ VAT

Interest Rate •

For 3 lac to below 10 lac- 17.25% for new loan & 17% for 1st repeat & so on (if applicable)

For 10 lac to 30 lac- 17%

Security •

For 3 lac to below 10 lac -Hypothecation on guarantors & post dated cheques

For 10 lac to 30 lac-Registry Mortgage of land property, Hypothecation on present & future assets, two personal guarantors & post dated cheques

present & future assets, two personal

TRADE PLUS: This product offers both funded & non funded loan facility to import oriented Small & Medium Entrepreneurs and constantly supports them to smoothly operate their import activities. Loan Ceiling •

Non Funded- BDT 1 lac to 30 lac

Funded - BDT 3 lac to 30 lac

Tenure •

Maximum180 days /deal

Loan processing Fees •

Funded -1 % of loan amount+ VAT

Interest Rate •

Non Funded (PAD)- 17%

Funded –17.8% (LATR, Revolving Loan, overdraft)

Security •

For LATR -Hypothecation on present & future assets, personal guarantor & post dated cheques

RL- For 5 lac to below 10 lac-BRAC Bank FDR 20%, Hypothecation on present & future assets, personal guarantor & post date d cheques

For 10lac to 30 lac-Registry Mortgage of land property, Hypothecation on present & future assets, personal guarantor & post dated cheques

OD - Registry Mortgage of land property, Hypothecation on present & future assets, two personal guarantors & post dated cheques

• •

Business equity loan Business Equity Loan is a loan facility for the enlisted Suppliers of various large retailers, marketing companies, distributors, exporters etc. This product’s main objective is to help various Suppliers to meet their short-study cash flow shortages or bridge the fund-flow gaps.

Eligibility • If you are an enlisted supplier of a corporate house with which BRAC Bank has a corporate tie- up • Have minimum 3 years of continuous operation • Have 1 year continuous relationship with the purchasing firm Maximum Amount • Minimum BDT 4 lac up to maximum BDT 30 lac Features • Equal monthly installment and revolving loan facility • 1% of loan amount as the processing fe Tenure •

1 to 12 months

Interest Rate •

Revolving – For BDT 4 to below 10 lac -17.8%

For BDT 10 to 30 lac -17.%

• •

Overdraft- For BDT 4 to below 10 lac – 17% For BDT 10 to 30 lac – 16%

Suppliers Finance Supplier & Distributor Loan a loan for various suppliers & distributors to expand their businesses Product Type Equated Monthly Installment & Single Installment Loan Ceiling BDT 3 lac to below 10 lac Tenure EMI-12 to 36 months Single Installment - 3 to 9 months

Loan amount Required loan amount + up front installment(if any)+ all fees and charges with applicable VAT Loan processing Fees 2.5% of base loan amount+ VAT Interest Rate 17.25% for New Loan 17.00% for 1st time repeat & so on (if applicable) 3.7. Basic Appraisal of Small &Medium Enterprise:

Business or project appraisal is a technique of evaluating and analyzing Business from various aspects, primarily the risks associated with that business enterprise. At the time of appraisal of any manufacturing, trading or service related organization, factory or industry; one has to perform a feasibility study on the different aspects. These are: a. Management and Personal Aspects b. Technical Aspects c. Marketing Aspects d. Financial Aspects e. Social Economic Aspects f. Security Aspect a. Management and personal aspects: During the appraisal prosecute the Customer Relation Officer (CRO) should endeavor to obtain details about the prospective borrowers, some of which are: i. Business related information ii. Credit History iii. Liquidity Information iv. Management Background In considering the above, one should look at the business is managed. The CRO should also consider clients previous credit history like facilitates sought and availed, loan repayment an overdue record, if any. One should also check the client bank account and amount of balance maintained. Management’s qualification, experience, successor and maintenance of records should provide insight in to the business. b. Technical Aspects: From a business perspective, this aspects deals with design of the system in place, the operation of the business, the different type of physical resources used, the technology used, the capacity to handle business and all other inputs (labor, raw materials, utilities etc.) Among the technical factors to be investigated during an appraisal are: • The size of project

• • • • • • •

The process, materials, equipment, and reliability of technical systems to be used Location of projects Sustainability of the plans, layout and design used Total quantity of the goods /Service produced/Traded monthly Environment of the business and its surrounding areas Availability to various factors of production, both physical and human Raw materials availability, price level and its variation to be considered

c. Marketing Aspects: A CRO should consider the following factors of a business before making any loan commitment with a customer: Total demand and supply of the products in the market that the business operates in growth of sales and major marketing threats that the business may face. d. Financial Aspects: This aspect allows us to check the financial health of a business, through an analysis of the profit and loss account, balance sheet, cash flows, ratios and requirement of working capital. If the collection of the financial data can be done properly, then it may be able to make a somewhat realistic picture of the business financial position. However, all the data collected must be crosschecked as much as possible with the physical features of business. The following things are to be considered and restudied at the time of verifying the financial feasibility of the business:  Current year’s profit/Loss of the business and probable profitability of business after taking the loan  Restructure of assets, liabilities and net worth of the manufacturing/ trading / service institution before and after taking loan  Present net cash flow of the business after disbursement of loan should be restudied,  To know the cash position of the institution  To know the source of income, production and other expenditure of the business probable financial risks of the business e. Socio Economic Aspects: Here the analyst like to observe the contribution of the business to the country’s GDP, the employment generated, the sort of adverse impact of the business on the environment, it is another benefit to the country. f. Security Aspects: Along with observation of different aspects and views of the projects, the CRO should also see closely the aspects of the projects and ensure about the reliability to the mortgaged property/assets. Ensure proper survey or verification of the security offered Ensure attachment of survey report. 3.8 Reasons of SME program from the viewpoint of BRAC Bank:

The main focus of BRAC Bank is to develop human and economic position of a country. Its function is not limited only to providing and recovering of loan. But also try to develop economy of a country. So reason for this program from the viewpoint of BRAC Bank is: a. Support Small Enterprise: The small enterprise, which requires 2 to 30, lacks taka loan, but these has no easy access to the banks/financial institutions. For example: In 3 to 8 lac amount of loans is provided without any kind of mortgage. b. Economic Development: Economic development of a country largely depends on the small and medium seal enterprises. Such as, if we analyze the development history of Japan, the development of small & medium scale enterprises expedite the development of that country. c. Employment Generation: The bank gearing employment opportunities by two ways: Firstly, by providing loan to the small enterprises expanding, these businesses require more workers. Secondly, Small & Medium Enterprise (SME) program requires educated and energetic people to provide savories to entrepreneurs. d. Profit Marking: SME program is a new dimensional banking system in the banking world. Most of the CRO’s are providing door to door services to the entrepreneurs. The entrepreneurs are satisfied by the service of this bank and the bank also makes more profit. e. Encourage Manufacturing: A focus of BRAC Bank is to encourage manufacturing by the entrepreneurs who are producing by purchasing various types of materials. CRO’s try to educate them to produce material if possible because if they can produce in line of purchase profits will be high. f. Spread the experience: Another reason of BRAC Bank is to spread the knowledge of regarding various businesses. The customer services officer get knowledge from various businesses is and tries to help the entrepreneurs who have shortage of the gathered knowledge by CRO’s. The CRO’s who are the driving force of SME division of BRAC Bank also gather knowledge about various businesses and make stronger knowledge base 3.9 Security Documentation against Loan: A document is a written statement of facts and a proof or evidence of particular transaction between parties involved. a. Purpose of Decorate Documentation and its Importance Documentation is necessary for the acknowledgement of a debt and conditions by the borrower and the creation of charge on the securities in favor of the bank by the borrower. If filing a suit with the courts against a default borrower becomes necessary, the court will first review all documents. If any of the documents is found to be defect or incomplete, the very purpose of security documentation will be defeated and a court ruling in favor the bank

cannot expect. Proper care should, therefore, be taken while completing security documentation. b. Type of Securities The following listed securities may be obtained from borrower against loan to enterprises, either individually or in a combination. It is really up to the bank what they would like to accept as security from the borrower as not all the securities stated below are suitable: • • • • • • • • • •

Mortgage of loan and other immovable property with power of attorney to sell Lien of Fixed Deposits receipts with banks and other non-banking financial institutions, lined, these have to confirmed by the issuer ( Now these are rarely accepted) Lien of Pratirakshay sanchay patra, Bangladesh sanchay patra, ICB unit certificates and wage earner development bond, all considered Quasi or Near cash items. All these instruments, one liend, have to be confirm by the Lien of shares quoted in the stock exchange ( This is rarely accepted) Pledge of goods (Banks are akin to stay away from such securities now a days) Hypothecation of Goods, Book Debt & Receivables, Plant & Machineries Charge on fixed assets of a manufacturing enterprise Lien of cheque, Drafts and order Lien of work orders, payment to be routed through the bank and confirmed by the issuer. Shipping documents of imported goods

b-i) Land related securities documentation process . The documents generally provided are: • Title Deeds or Deed of conveyance otherwise known as ‘Jomeer Dalil’ which signifies ownership of a particular land. • Baya Dalil or Chain of Documents which signifies that the conveyance of titles has been proper and legal. • Mutation Certificate if Khatian which signifies that the title if the land has been duly registered in the Government/Sub-registrar’s records. • Duplicate Carbon Receipt or DCR • Latest Khajna or land rent receipt • Purchase such as CS Khatian, SA Khatian and BS Khatian • Mouja Map • Municipal rent receipts if the land falls within a municipal area b-ii) There are two type of mortgagee’s that are popular and usually accepted in Bangladesh: i) Equitable Mortgage or Memorandum of Deposit of Title Deeds ii) Registered Mortgage 3.10 Selection of Potential Enterprise for SME:

The success of SME will largely depend on the selection of a business and man behind it. In studies of the business (Enterprise), the following attributes should be sought: 1. The business must be in operation for at least one year 2. The business should be environment friendly, no narcotics or tobacco business 3. The business should be legally registered, i.e., valid trade license, income tax or VAT registration, wherever applicable. 4. The business should be in legal trade, i.e.; smuggling will not be allowed or socially unacceptable business will not be entertained. 5. The business must have a defined market with a clear potential growth 6. The business must be located ideally close to the market and the source of its raw materials/suppliers. It should have access to all the utilities, skilled manpower’s that are required. 7. Any risk assessed by the management in turn will become a credit risk for the bank. So effort should make to understand the risk faced by the business. Guarantor Selection Criteria 1. The guarantor must have the ability to repay the entire loan and is economically solvent ( Check his net worth) 2. The guarantor should be aware about all the aspect of SEDF loan and his responsibility 3. Govt. and semi-govt. officials can be selected as a Guarantor such as schoolteacher, college teacher, doctor etc. 4. Police, BDR and Army persons, political leaders and workers, and Imam of mosque cannot be selected as a guarantor. 5. The guarantor should know the entrepreneur reasonable well and should preferably live in the same community 3.11 Sanction and reject procedures of BRAC Bank’s SME Loan: Loan Sanction activities • Select potential enterprise: For SME loan, in this step the CRO conduct a survey and identify potential enterprise. Then they communicate with entrepreneurs and discuss the SME program. • Loan Presentation: The function of CRO is to prepare loan presentation based on the information collected and provided by the entrepreneur about their business, land property ( Where mortgage is necessary) • Collect confidential information: Another important function of a CRO is to collect confidential information about the client from various sources. The sources of information are suppliers regarding the clients payment, customers regarding the delivery of goods of services according to order, various banks where the client has account which shows the banks transactions nature of the client. • Open clients accounts in the respective bank: When the CRO decided to provide loan to the client then he/she help the client to open an bank account where BRAC bank has a STD a/c. BRAC bank will disburse the loan through this account. On the other hand the client will repay by this account. Although there is some exception occur by the special permission of the authority to repay by a different bank account. • Filled up CIB form: CRO give a CIB (Credit Information Burue) form to the client and the client fill and sign in it. In some case if the client is illiterate then the CRO fill

the form on behalf of the client. Then CRO send the filled and signed form to the SME, head office. • •

Sending CIB to Bangladesh Bank: The SME, head office collect all information and send the CIB form to Bangladesh Bank for clearance. Bangladesh Bank return this CIB form within 10-12 days with reference no. CIB report from Bangladesh Bank: In the CIB report Bangladesh Bank use any of the following reference no:  NIL: if the client has no loan facility in any bank or any financial institution then BB (Bangladesh Bank) use ‘NIL’ in the report  UC (Unclassified): if the client has any loan facility in any bank or financial institution and if the installment due 0 to 5.99 then BB use UC in the report  SS (Substandard): if the client has any loan facility in any bank or financial institution and if the installment due 6 to 11.99 then BB use SS in the report  DF(Doubtful): if the client has any loan facility in any bank or financial institution and if the installment due 12 to 17.99 then BB use DF in the report  BL (Bad lose): if the client has any loan facility in any bank or financial institution and if the installment due 18 or above then BB use BL in the report. This report indicates that the client is defaulter and the bank should not provide loan the client. Loan decision considering CIB report: Considering CIB report, BRAC bank decide whether it will provide loan the client or not. If the bank decides to provide loan then the SME of head office keep all information and send all papers to the respective unit office to apply with all necessary charge documents.

3.12 SME Loan Recovery Procedures: The repayment process starts immediately after one month of the loan taken. Suppose if a loan is taken in July 7, 2010 then the repayment process will be started from August 7, 2010 and the borrower will pay his/her first installment in that date. Before that date, the borrowers will be informed about the number of installments and amount of each installment. He can deposit the installment by himself or by the Customer relationship officer (CRO). Again they can deposit the installments either in any branch of BRAC Bank or in any correspondence bank (where BRAC Bank has no branch). If the borrower cannot pay the installment in the stipulated date, interest will be charged for each day before they pay that installment. Again interest will be reduced if the borrower pays the installment before the date of repayment. Interest will be charged and added to the principal amount for every month or every 3 three months depending on the policy for each loan disbursement. Receive SMS/Fax for installment deposits When the borrower repays any installment of the loan then he/she informs it to the unit office/CRO. Then the unit office/CRO sends an SMS through mobile phone or a Fax to the

loan administration division informing the repayment. A loan administration division collects these SMS /Fax and takes a paper print of these SMS. Entry the installment information to MBS Loan administration division entries the repayment installment information to the banking software MBS. Print Vouchers Completing the entry, the loan administration division takes paper print of all vouchers in a prescribed yellow paper. Check SMS/Fax and solve problems (If any) The loan administration is responsible for all entry in MBS. If there is any error found in future then the respective officer who is entering this information in MBS will be liable for it. User ID will easily identify it. So they are always aware of to ensure the correct entry. Completing the entry of information, they print a hard copy and check it with the SMS/Fax. If there is any error found then it is solved and ensures the correct information entry. Repayment voucher check and posting If it confirmed that all entering information is correct and there is no error, then the responsible officer of the loan administration division posts it to MBS. If one time posted, it is not rectifiable without permission of the higher authority. So the loan administration is always aware of regarding the recovery procedures of SME loan. 3.13. SWOT ANALYSIS:

SWOT analysis helps the organization to identify how to evaluate its performance and Strength


Strong management & good relationship between management

• •

• • •

Sound working environment Efficient employees Distinct Operating Procedures-BBL is known for its distinct operating procedures BBL provides hassle free customers services to its customers

BRAC Bank Management everywhere

• •

also by

implements objectives

Opportunities •

• •

There are vast areas to develop the sector; people of our country are living in village. They can easily establish their business by SME loan. There is high demand in sectors such as Housing. The ultimate goal of BBL is to expand its activities across the whole country.

• • • •

There is few chance of job rotation. Lack of financial and non-financial motivation. Inadequate human resource to cover the work load. Huge work load. There is little chance to be a regular employee from contractual officer. Recruiting contractual employee. Employees who lack commitment and are less motivated due to their designation. Lack of experienced employee.

Threats • • • • •

High rate of interest rate. Shift from Comparative advantage to Competitive advantage Contractual employees are always prone to frequent job changes. Due to the weak salary structure permanent employees may switch jobs. The current global financial turmoil is a huge threat to BRAC Bank.

3.14 Porter Five Forces analysis: Porter's 5 forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter. It uses concepts developed in Industrial Organization (IO) economics to derive 5 forces that determine the competitive intensity and therefore attractiveness of a market.. Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porter’s five forces are: • •

Bargaining power of suppliers Bargaining power of buyers

• Threat of new entrants • Threat of substitutes and • Rivalry among competitors. Together, the strength of the five forces determines the profit potential in an industry by influencing the prices, costs, and required investments of businesses—the elements of return on investment. Stronger forces are associated with a more challenging business. Intensity of Rivalry amongst competitors Rivalry among competitors is often the strongest of the five competitive forces, but can vary widely among industries. If the competitive force is weak, companies may be able to raise prices, provide less service for the price, and earn more profits. If competition is intense, it may be necessary to enhance product offerings to keep customers, and prices may fall below break-even levels. In Bangladesh there are more than 30 commercial banks that compete in the same industry. The national banks have the highest banking network in Bangladesh. They compete with other banks with their low cost of operation and government support. Again, Standard Chartered bank is the largest multinational banking network in Bangladesh that has its network in many metropolitans of Bangladesh. There are other international banks such as HSBC that also take part in the competition and are aggressive in nature. Due to the increasing number of banks in Bangladesh it makes difficult for the existing banks such as BRAC Bank Limited to compete in the long run. In the Banking Sector, competition is about offering customers the most attractive combination of services introducing new products, offering more customer services, or creating a stronger brand image than competitors. Threat of new entrants: Analyzing the threat of new entrants involves examining the barriers to entry and the expected reactions of existing firms to a new competitor. Barriers to entry are the costs and/or legal requirements needed to enter a market. These barriers protect the companies already in business by being a hurdle to those trying to enter the market. In addition to up-front barriers, a new competitor may inspire established companies to react with tactics to deter entry, such as lowering prices or forming partnerships. The chance of reaction is high in markets where firms have a history of retaliation, excess cash, are committed to the industry. The threat of new entrants is moderate in the context of Bangladesh. Over the years it is seen that increasing number of local banks have emerged in the local market. Moreover it is seen that new international banks have also started their operations in Bangladesh and also slowly increasing their branches countrywide. In the context of BBL the various new & upcoming Banks pose a significant threat, being new entrants in the banking sector of Bangladesh. But BBL is aware of these potential

competitors and is trying to expand countrywide to make the sector unattractive & to create entry barrier. Threat of substitute products Products from one business can be replaced by products from another. If one produces a commodity product that is undifferentiated; customers can easily switch away from that product to a competitor’s product with few consequences. In contrast, there may be a distinct penalty for switching if the product is unique or essential for the customer’s business. Substitute products are those that can fulfill a similar need to the one a product fills. The threat that substitute products pose to an industry's profitability depends on the relative priceto-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of substitution is also affected by switching costs – that is, the costs in areas such as retraining, retooling and redesigning that are incurred when a customer switches to a different type of product or service BBL continuously faces the threat of various substitute products launched by its strong competitors in the market place. For example, the launch of premiere banking by SCB poses a strong threat on BBL’s premium customer group and BBL is at a condition where it should launch an even better product. Various local and international banks these days are coming up with low cost new products which may pose a strong threat to BBL’s banking. Since the switching costs are not that high there is always a chance of customer changing their preferred banking services from a particular bank. Bargaining power of suppliers Any business requires inputs—labor, parts, raw materials, and services. The cost of inputs can have a significant effect on a company’s profitability. Whether the strength of suppliers represents a weak or a strong force hinges on the amount of bargaining power they can exert and, ultimately, on how they can influence the terms and conditions of transactions in their favor. Suppliers would prefer to sell to at the highest price possible or provide with no more services than necessary. If the force is weak, then one may be able to negotiate a favorable business deal for themselves. Conversely, if the force is strong, then one will be in a weak position and may have to pay a higher price or accept a lower level of quality or service. The depositors of BRAC Bank Limited are the main suppliers of the bank. Considering the economic condition of the country it can be said that the bargaining power of the suppliers are very high. The main reason behind this is that after the caretaker government took over the country huge amount of wealth of politicians have been confiscated which otherwise would have been deposited in different banks. As a result the banks in Bangladesh are in shortage of depositors. Due to the shortages of depositors, the depositors are being able to bargain a better negotiation. Moreover the BRAC Bank Limited is not being able to decrease their interest rate on deposits which makes the bargaining power of the suppliers very high. Bargaining power of buyers

The power of buyers describes the effect that customers have on the profitability of a business. The transaction between the seller and the buyer creates value for both parties. But if buyers (who may be distributors, consumers, or other manufacturers) have more economic power, then the firm’s ability to capture a high proportion of the value created will decrease, and the firm will earn lower profit. Considering the global financial downturn and also the current economic situation of the country it is seen that customers are reluctant to go for new investments and also due to the global financial turmoil it is seen that imports have been reduced to a greater extent. As a result fewer importers are opening LC’s through BRAC and other banks. Moreover fewer investors are taking loans from the banks. As the switching costs is not that high, customers often tend to go for those banks where they provide low cost and quality services These factors implies that the customers of BRAC Bank have a high bargaining power.

Chapter -4 FINDINGS • • • • • • • • • •

SME loan is popular in rural area. But problem is management cost is very high for that reason people are discouraged on SME loan. As a rural area base loan system, bank face huge problem to collect minimum documentation against on loan. Another problem are arise when CRO going to collect installment. It’s really tough to collect installment. Maximum loan borrowers are not qualified for loan. There are vast areas in agriculture to investment. But investment is very low. There is no specific research institution for SME loan. Loan processing time is 1 month or more. So it creates a problem. Customer feels CRM harassment. Customer want long term loan, now maximum time is 36 months. Another big problem is online problem, because of that most of the unit office are in rural area for that reason bank can’t contract with unit office by online.

Chapter -5 Conclusion & recommendations BRAC Bank Limited is proving itself as the fastest growing bank only in 9 years of its journey and showing remarkable progress of its financial position with the mission of being countries leading bank providing world-class services in a cost effective manner. This bank first introduces the SME loan in commercial banking sector, which help the people of poor society both in rural and urban. One thing can be noted that time horizon is too little to

predict or evaluate the performance but the analysis clearly represents the better performance of the BRAC Bank Limited since its inception in year 2001. Even though BRAC Bank’s different performance parameters are good, it should expand its operations to the rural mass people who basically are deprived from different quality services of BRAC Bank Limited. It is possible because it has a great linkage with the BRAC, a micro-finance institution, spread all over the country. •

First of all Bank should have to find those causes that increases cost. Then take right action to minimize the cost.

Identify the qualify person who is able to collect the loan.

Proper documentation collect is another main duty for bank. Because of that without documentation loan recovery are difficult.

CRM harassment should be minimized.

CRO needs to increase personal relationship with potential customer.

Bank should be launch motivational activities. Like Successful Entrepreneur of the year award.

Bank should increase their nursery process after sanctioning their loan.

• •

Time management should be minimized. They have to use such kind of server by that every unit office can contract head office.

Annual Report of 2010.

Annual Report of 2001, 2002, 2003, 2004 and 2005.

Annual Bank Performance Report (2005), Bangladesh Bank.

Corporate Update (2005), Brac Bank Limited.

Hazel T. (1993), Financial Institutions and Markets, A Global Perspective, McGrawHill International, New York, NY.

Manual of Credit Approval and Monitoring policies, Brac Bank Limited, Volume 2, No. 1.

• •

Peter S. (2005), Bank Management & Financial Services, 6th Edition, McGraw-Hill International, New York, NY.

Scott B. (1996), Essentials of Management Financing, 12 th Edition, The Dryden Press, Orlando.

Timothy W. (2003), Bank Management, 5th Edition, South-Western, Mosco.

T.T. Sethi (2003), Money Bank and International Trade, 2003 Edition, S. Chand & Company Ltd. New Delhi, India.

Other short notes provided by the bank in different times.

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