Operation of Commercial Banks in Bangladesh Free Essays

Research paper On Operation of Commercial Banks in Bangladesh Term Paper On Operations of Commercial Banks in Bangladesh Financial Institutions amp; Markets (FIN 335) Summer 2012 Submitted To Md Lutfur Rahman Assistant Professor Department of Business Administration East West University Submitted by Srabonty MazumderMd. Saddam HossenMd. Mehedi HasanMd. We will compose a custom paper test on Activity of Commercial Banks in Bangladesh or on the other hand any comparable point just for you Request Now Nazmul Hasan BhuyanSanjana Ahmed| 2009-2-10-0212009-3-10-031 2009-3-10-0762009-3-10-0222008-3-10-101| Section:02 Date of Submission: April 18, 2012 Letter of Transmittal April18, 2012 Md Lutfur Rahman Assistant Professor Department of Business Administration East West University Subject: Submission of Assignment. Dear Sir: We are satisfied to present this research project on â€Å"Operations of Bank the executives in Bangladesh. † as you have approved us to in this semester. We are respected to set up this research project under your direction since it allowed us the chance to know the activities of various business bank in Bangladesh and furthermore know the item and administration offered by that bank. What's more, we investigate which bank gives exceptional item and administration to their clients and what direction they give. We examine its offered item relative situation in separate to the next kind of business bank. We attempted our level best to amass the data for you as far reaching as could be expected under the circumstances. We will be obliged to give further explanation on this report at whatever point essential. Genuinely Yours, Srabonty Mzumder [2009-2-10-021] ________________ Md. Saddam Hossen [2009-3-10-031]________________ Md. Mehedi Hasan [2009-3-10-076]________________ Md. Nazmul Hasan Bhuyan [2009-3-10-022]________________ Sanjana Ahmed [2008-3-10-101]________________ Acknowledgment We might want to offer our thanks and obligation to our respectable workforce Md Lutfur Rahman, Assistant Professor, Department of Business Administration, East West University (EWU). With his unlimited direction, important guidance, ceaseless motivation, productive analysis and liberality she helped us to do this report effectively. We might likewise want to offer our thanks to the site that helped us to assemble all the important data. At long last, we might want to thank to all gathering individuals that straightforwardly or in a roundabout way helped us to give and collect all the fundamental data for the achievement of this task. List of chapters Executive Summary 1. Presentation: There are distinctive kind business bank that are working their business in Bangladesh like state claimed business bank, private possessed business bank, some global bank, Islamic bank and so forth ach sort of bank offer diverse sort of item and administration for their customer. These business offer various sorts of stores administration and furthermore offer various kinds of credit administration. So we investigate the similar circumstance in one bank offered item and administration with another bank. 2. 1. Inception of the report: This report begins to satisfy the necessity of contemplating Financial Institutions amp; Markets, which is the course of BBA Program of East West University. The subject of the report is â€Å"Operation of Commercial Banks in Bangladesh† 2. 2. Objective: The reason for the report is to know the similar circumstance among the business bank and furthermore to expand our insight about money related market by investigating its near circumstance. 2. 3. Extent of the report: There are colossal degrees to set up the research project to gathering data, break down the data and furthermore execute the data. 2. 4. Limitations: To set up this report we have confronted a ton of issues, for example, inaccessibility of lab, power issue, inaccessibility of related books inaccessibility of data in net and so on 2. 5. Procedure: right away we gather the essential data from web like related bank sites, and afterward breaks down the data based on accessible data. So with the end goal of the report fulfillment gather data from auxiliary sources. Open and Private business Banks in Bangladesh Public Banks: The financial arrangement of Bangladesh is commanded by the 4 Nationalized Commercial Banks In which 3 are completely constrained by government and 1 (Rupali Bank) bank is constrained by both government and private segment. Nationalized Commercial Bank of Bangladesh: * Sonali Bank Agrani Bank * Rupali Bank * Janata Bank For Our Comparison we select Agrani Bank and Sonali Bank Private Banks: Private Banks are the most noteworthy development part because of the bleak exhibitions of government banks (above). They will in general offer better assistance and items. Presently 39 private business banks are working in Bangladesh. Among them we select Dutch Bangla Bank ltd and BRAC Bank ltd for our examinatio n. Correlation among Public and Private Banks: 1. Individual Banking: As open Bank Agrani Bank and Sonali Bank offer Personal financial items for their present and potential clients. Then again private bank additionally give various kinds of individual financial assistance for their present and potential client. Store and credit administrations are-Product type| Public Bank| Private Bank| Deposit services| Savings ledger, Fixed store receipt, Pension schemeSonali Deposit Scheme (SDS)Education Deposit Scheme (EDS)Medicare Deposit Scheme (MDS)Monthly Earning Scheme (MES)Marriage Savings Scheme (MSS)Rural Deposit Scheme (RDS) andDouble Benefit Scheme (DBS)Credit Schemes| Convertible Taka Account. Current Deposit AccountCurrent Deposit Account BankExporter’s FC DepositForeign Current AccountNon-convertible Taka Account Saving store AccountShort Term Deposit AccountShort Team Deposit Bank Account| Loan Sevices| Home advance, Consumer advance, Advance against salaryConsumer Credit Special Small Credit IT Finance Loan for Diagnostic Center Loan plot for Employment Abroad | Auto Line Care Line Dreams works out as expected LineEducation LineFestival LineFull Secured Line General LineHome Line: Marriage Line Professional LineTravel line| 2. Business backing And Industry Development Products : With the end goal of working up a reserve of Tk. 500 crore for financing mechanical projects, Agrani Bank introduced Agrani Bank Shilpa Unnayan Bondâ in 1999. There are two sorts of bonds †5 and 7 years. The most minimal section is Tk. 50,000 and most elevated one is of Tk. 500,000. Loan fee is adequate to draw in individuals. Significant credit Schemes for specialists are Industrial Credit, Trade Finance, Import Finance and Export Finance. On the off chance that you are a meriting contender for any of them, or you need any narrative help from Agrani Bank, you may visit to any branch of Agrani Bank. For modern advancement of the country Sonali Bankâ provides long haul credit against new businesses and BMRE program of existing enterprises. Under various plans it tends to push area, Garments, Tourism, Hospital, Pharmaceutical, Power Plant and some more. Contrast with Public saves money with private bank : Also offer distinctive sort of advance offices that’s loan cost is by and large drifted financing cost. 3. Agri amp; Rural Banking item : Now main concern ranchers may have a financial balance storing Tk. 10 in particular. Agrani Bankâ provides this support of rustic zones in Bangladesh. Youthful age planning to travel to another country for occupations may have credit for their air tickets and different costs against ostensible protections. Other provincial prudent exercises are additionally bolstered by Agrani Bankâ credit programs. The territories tended to are Cultivation (bloom and others), Fisheries, and Poultry, Purchasing Agriculture and water system hardware and furrowing creatures. So it tends to be said that Agrani Bank that open bankâ is attempting to advance financial development of Bangladesh from the very grass root level which is 80% of national economy. 5% of our populace lives in provincial zones of Bangladesh and 75% acquire their living from farming. So without support up of agribusiness our economy won’t develop. Likewise Sonali Bank as an open bankâ very accurately addresses it through the Rural Credit Scheme. The plan gives advance under the accompanying models: * Crop Loan * Special Investment Program * Farming amp; Off Farming p roject * Krishi Khamar Rin Karmasuchi * Pond Fisheries Credit Program * Fertilizer Dealers Credit Program * Sugarcane Production Loan Program * Social Forestation Program All these credit programs are a lot of appropriate for our rustic individuals and society and meanwhile these endeavors have begun to give result. The outcomes are empowering. Then again private banks Such as Bank Asia and Dutch Bangla bank as private bank, regularly center around the urban individuals. They don’t have a particular items on the country or Agricultural area. Bank Asia has an item â€Å"KIOSH† for the rancher however it isn't so well known or valuable for the rancher. 4. Microcredit item: For Bangladesh point of view microcredit is essential. To consider the destitute individuals of Bangladesh Sonali Bank offer Microcredit. Sonali Bankâ being submitted for individuals and society has been taking an interest in the field effectively since 2003. Around 20 undertakings under the plan are in progress. Then again in Private Banks: Such as Bank Asia and Dutch Bangla bank have no particular microcredit item for the lower white collar class individuals of Bangladesh. All Their items is essentially for high society and white collar class individuals. 5. SME Banking item: Small and medium venture of the nation is one of the meriting segments for budgetary help. Agrani Bankâ justifiably gives credit to them under various plans. Agrani Bankâ launched a joint endeavor program named Small Enterprise Development Program (SEDP) with NORAD, a Norwegian organization in 1995. This program was executed in more noteworthy Mymensingh and Faridpur dist