Performance Evaluation of a Private Bank

[pic] [pic] [pic] [pic] [pic] An Assignment On Agency Evaluation of a Personal Bank IFIC Bank as a individualal bank in the individualal sector of Bangladesh. Prepared For: Narzia Florin Lecturer, Dept. of Affair Administration Prepared By: Saleh Ahmed BBA – 02406160 24th GI Dept. of Affair Administration Stamford University Bangladesh. Patience Date: 15th May 2006 Letter of Transmittal Dated: May 15, 2006 Narzia Florin Lecturer, Dept. of Affair Administration Subject: Patience of description on agency evaluation of a individualal trafficable bank. Dear Madam, It has been a excellent satisfaction to yield the description on agency evaluation of a individualal trafficable bank. You are informed that I attentive instruction on a individualal trafficable bank. I appropriate IFIC Bank for the description sentiment. I am propitious sufficient that I got all those instruction compulsory for the assignment sentiment. I judge that this assignment has abandoned me a excellent test to me and it has consoled twain my recognition and test. I expert my best to test my skills conjuncture preparing this description. I cordially search your bark order or instigation in-reference-to my strike which procure acceleration me in my utilityable and speculative works in the days to conclude. Sincerely yours, Saleh Ahmed BBA – 02406160 24th GI Table of Contents ? Executive Summary. ? Profile of IFIC Bank. ? BANK'S MISSION: Quest for Excellence. ? The bank in a paint. ? Ownership Structure. ? Financial Position. ? Consequence & Services. ? Rational Resources Development. ? Rates of Bond Schemes. ? Conclusion. Executive Summary: In this description on the Agency Evaluation of a individualal bank as IFIC bank, I convoke the compulsory instruction from its web standing, catalog, bossier and individualally by instruction convokeion. I set that these individualal companies are very competitive and nearness to delayhold the far-reaching traffic of Bangladesh at any require. So they supply manifold types of consequence and employments. I too set that the companies counterattack their competitors by their offers. Some gives violent or low attention reprimand, new facilities etc... Integral aggregation has their own artifice to delayhold the traffic. In my description I expert to enclose most of IFIC bank’s consequence, employments and facilities. Though I accept some limitations I expert my best to exhibition the Agency Evaluation of IFIC bank as a individualal bank. BANK'S MISSION: Quest for Excellence Our Mission is to supply employment to our clients delay the acceleration of a utilityable and loving workforce whose fanciful magnitude, innovative actions and competitive lip constitute our standing choice in giving sort employment to all institutions and individualals that we prudence for. We are committed to the good-luck and economic good-luck of the nation and the unreservedity, for we force from them our revelation and force for forward advancement to good-luck. We nearness to be the pioneer disexoteric banks in Bangladesh and constitute our irreversible symptom as an locomotive sharer in regional banking unoccupied further the unreserved indicate. In an intensely competitive and multifarious financial and affair environment, we in-particular rendezvous on bud and benefit-serviceability of all sorrowed. THE BANK IN A SKETCH: Interunreserved Finance Investment and Commerce (IFIC) Bank Limited afloat banking agencys on June 24, 1983. Anterior to that it was set up in 1976 as a knee risk finance aggregation at the point of the Government of the People's Renotorious of Bangladesh. Government then held 49 percent shares conjuncture the sponsors and notorious notorious held the cessation. The objectives of the finance aggregation were to fir knee risk Banks Finance Companies and affiliates aloof and to propel out natural discharges of a finance aggregation at abode. When the Government unwavering to unreserved up banking in the individualal sector in 1983, the aloft finance aggregation was converted into a full-fledged trafficable Bank. Acrave delay this, the Government too recognized lewd other trafficable Banks in the individualal sector. Subsequently, the Government denationalized two Banks, which were then abundantly Government-owned. While in all these Banks Government held trifling 5 percent shares, an exclusion was made in the fact of this Bank. It holded 40 percent shares of the Bank. The redisentanglement by the Government to hold 40 percent shares in IFIC Bank was in pursuance of the peculiar objectives, indicately, elevation of knee community of Government and individualal sponsors to fir knee risk Banks, financial companies, ramificationes and affiliates aloof. Ownership Make BOARD OF DIRECTORS: Board of Directors of the Bank is a choice union of twain individualal and Government sector test. Currently it consists of Ten Directors. Of them five portray the sponsors and notorious notorious and lewd elder officials in the adreasonable and standing of knee secretary/Additional Secretary portray the Government. Managing Director is the ex-officio Director of the Board. |Elected Directors | |Representing 'A' Class Shareholders | |01 |Mr. Manzurul Islam |Chairman | |02 |Mr. Saiful Islam |Director | |03 |Mr. Abul Matin Khan |Director | |04 |Mr. Abdul Hamid Chowdhury |Director | |05 |Mr. A. R. Malik |Director | |  | |Nominated Directors | |Representing 'B' Class Shareholders | |(Government of Bangladesh) | |06 |Mr. Mohammad Janibul Huq |Director | |07 |Mr. ATM Ataur Rahman |Director | |08 |Dr. Chowdhury Saleh Ahmed |Director | |09 |Mr. Md. Mokhles ur Rahman |Director | |  | |10 |Mr. Mashiur Rahman |Managing Director | Financial Standing CAPITAL & RESERVES: The bank afloat delay an verified elevatedest of Tk. 100. 00 favorite in 1983. Paid-up elevatedest was then Tk. 71. 50 favorite solely. Aggravate the decisive Twenty One years, the verified & hired-up elevatedest has increased in-effect. Verified elevatedest was Tk. 500. 00 favorite and the hired-up elevatedest intelligible at Tk. 406. 39 favorite as on December 31, 2004. The Bank has built up a probe limitation shameful aggravate the years. In decisive twenty one years its limitations and excess accept increased significantly. This compatible artifice of construction up limitations has enabled the bank to frequent a amend elevatedest level relative as compared to others. Delay the locomotive establishation and administer from the Government, the bank has been exhibitioning a well-behaved-behaved-regulated and improved agency. In its twenty One years of agencys, the bank has earned the standing of a quantitative bank in stipulations of twain affair and husk-heartedness. Starting delay a courtly bond of solely Tk. 863. 40 favorite in 1983 the bank has shut its affair delay Tk. 20, 774. 49 favorite of bond as on December 31, 2004. The annual bud reprimand has for-the-most-part been violinvade compared to twain banking sector bud and individualal bud reprimands achieved by others. As despite a benefit-advantage of Tk. 21. 94 favorite in 1984, the bank earned a proceedings benefit-advantage of Tk. 700. 25 favorite for the year ended on December 31, 2004. PRODUCT & SERVICES Presently 5 (five) consequences/services accept already been proveed in the traffic: A. Pension Saving Scheme (PSS) B. Monthly Inconclude Scheme (MIS) C. Tele Banking / Tele Link D. Expiration Risk Benefit Scheme (DRBS) E. Consumer Reputation Scheme (CCS) A. Pension Saving Scheme (PSS): 1. Indicate of the Scheme: Pension Saving Scheme . Delivery Points: 62 Branches 3. Highlight of the consequence: Duration of the Account: 5 (five) Years & 10 (ten) Years Monthly Installments: Tk. 500 or Tk. 1000 or Tk. 2000 Cancelment following Maturity: | |PAYMENT AFTER MATURITY | | |5 YEARS |10 YEARS | |INSTALLMENT |WITHOUT BONUS |BONUS |WITH BONUS |WITHOUT BONUS |BONUS |WITH BONUS | |Tk. 00 |36265/- |1500/- |37765/- |93050/- |3000/- |96050/- | |Tk. 1000 |72530/- |3000/- |75530/- |186100/- |6000/- |192100/- | |Tk. 2000 |145060/- |6000/- |151060/- |372200/- |12000/- |384200/- | Eligibility for PSS Account: A individual of 18 years of age and aloft having a probe desire procure be preferable to unreserved an aggregateity in his/her own indicate. Douceur Payment: If the aggregateity holder, from initiation to manliness of order, pays all the monthly inductments in season (i. e. delayin 10th day of each month) and never defaults in paying monthly inductments, the aggregateity holder procure take extra douceur cancelment equiponderant to 3 (three) seasons of monthly inductment for 5 years order and 6 (Six) seasons of monthly inductment for 10 years order. Inconclude Tax Rebate: Lower this Scheme, inconclude tax rebate procure be beneficial on the aggregate edisposition payable i. e. following manliness of bonded equality; such edisposition procure too be inconclude tax frank. Monthly inductments to PSS procure too capacitate for exhibitioning as investments (affect supplynt investment) in annually Inconclude Tax Return. Cancelment of Pension: One can take the solid bonded edisposition delay attention at a season or take a pension on monthly plea at a advisable edisposition of monthly inductments. B . Monthly Inconclude Scheme (MIS): 1. Indicate of the Scheme: Monthly Inconclude Scheme. 2. Delivery Points: 62 Branches. 3. Highlight of the consequence: 4. Duration of the Account: 5 Years (Deposited elevatedest edisposition procure be returned on manliness). 6. Edisposition to be Deposited: Tk. 50000/- and it’s multiple. 7. Payment following Maturity:Tk. 450/- and it’s multiple. Procedures for paying monthly allowance: The cancelment of monthly inconclude procure set-out from the posterior month following a disencumbered poverty gap of 1 (one) month from the determination of bond. If an aggregateity is unreserveded on 7th of any month, monthly inconclude procure be hired on 7th of the posterior month. The aggregateity holder procure take monthly inconclude in any SB/CD aggregateity of corresponding indicate frequented delay the ramification. In fact, the aggregateity holder does not accept any SB/CD aggregateity delay the Branch, he/she/they procure accept to unreserved a SB/CD aggregateity for receiving the monthly allowance. The poverty pit requirement procure be waived for these types of aggregateitys for a new customer. However, a poverty primal bond of Tk. 500/- procure accept to be bonded. This progress procure enucleate the hassle of hence to the Bank Ramification for preliminary attention integral month. Eligibility for Monthly Inconclude Scheme: A individual of 18 years of age and aloft having a probe desire procure be preferable to unreserved an aggregateity in his/her own indicate. A individual can unreserved over than one aggregateity in his/her/their indicate in the corresponding Ramification or any Ramification of the Bank. C. Tele Link/Tele Banking: 1. Indicate of the Scheme: Tele Link or Tele Banking. . Delivery Points: Gulshan, Federation, Dhanmondi, Motijheel Branches. 3. Basic Features of the Product: Phone Banking is a secure commodious and comfortable to use employment that procure wholeity one's lifestyle and maintain one in perfect administer of his banking. One can admission all the Telelink employments at any season, day or shade, from anywhere. It is far over commodious than transmitted banking. Telelink is veritably homely to use. One can reasonable dial our phone enumeadmonish from anywhere and an automated computerized tone repartee procure regulate him march by marchs through his affairs. Confidentiality: A customer is abandoned a 6 digit Registration Enumeadmonish when he applies for Telelink that procure secure aggregate intimateity of his aggregateity instruction. When the customer appropriates to achieve inequitable instruction encircling his aggregateity, he procure accept to use his Registration Enumeadmonish and the intimate Personal Identification Enumeadmonish (PIN) by importunate the enumeadmonish keys on his phone. Banking Services Cherished by Telelink: A. Transactions About to Transfer of investments from one aggregateity to another B. Inquiries about to • aggregateity pits • affair details • modify reprimands • attention reprimand instruction • consequences and employments • remittances C. Requests for • pit title • aggregateity declaration • 7-days delaydrawal mark on aggregateitys • cheque books/pay order/drafts • renewing or unreserveding of unroving bonds • acceleration for unreserveding other aggregateitys In analysis, the employment can too communicate delay lost cheque books and reputation cards, substitute of address and suspension of cancelment. Fees: We are not charging any fees for this technical employment but the dexterity has been offered to Saving Bank customers delay a poverty pit of Tk. 50,000/-, to Exoteric Bond Totality customers and STD customers delay a poverty pit of Tk. 100, 000/-. D. Expiration Risk Benefit Scheme (DRBS) . Indicate of the Scheme: Expiration Risk Benefit Scheme. 2. Delivery Points: 62 Branches. 3. Basic Features of Scheme: IFIC Bank's Expiration Risk Benefit Scheme offers its Savings Bank Totality holders' attention on savings, a slice sum edisposition and some reconciliation of desire - three in one benefits at no extra require! Benefits of Scheme: Expiration Risk benefits in slice sum edisposition to nominee(s)/heir(s) on the expiration of an aggregateity holder. Eligibility Criteria: Totality must be frequented for a duration of poverty one-year anteriorly the expiration of the aggregateity holder. At the season of expiration, the customer must accept been delayin the age sumion of 18 to 50 years. The aggregateity must accept been unreserveded delay a poverty bond of Tk. 5000 in fact of new aggregateitys. (Since 1-8-97). Mediocre pit of Tk. 10,000/- poverty must be frequented delayin one-year duration anterior to the expiration of the Totality Holder. Extent of Benefit 50% of the mediocre pits of the aggregateity for one-year duration anterior to the expiration of the aggregateity holder or Tk. 100,000 whichever is inferior. Totality pit ample Tk. 10, 00,000/- procure not be fascinated into compensation conjuncture farsighted mediocre pit for one year for the sentiment of Expiration Risk Benefit. E. Consumer Reputation Scheme (CCS): 1. Name of the Scheme: Consumer Reputation Scheme. 2. Delivery Points: 62 Branches. 3. Highlight of the consequence: |Main Features |Particulars | |Selection Criteria / Who Can |A Self assiduous individual of unroving inconclude $ a developed or burning employment holder. | |employ | | |Products Preferable for Finance |Vehicles, Domestic Appliance, Business-post Equipment, Entertainment, Medical Expenses, Intangibles, etc. |Limit Range |Tk. 15,000 to Tk. 7,00,000 | |Recancelment |By 12, 24, 36 or 48 equated monthly inductments (EMI) depending on the advance equality. | |Intecessation Reprimand / Fees |Interest: | | |@ 16. 00% P. A. ithoutany comprehensible guard and | | |@ 14. 50% P. A. where the advance is 100% sure delay 20% lip despite lien of FDR, MIS, PSS, Savings | | |Certificates issued from any Bank & Financial Institution. | | |Service Charge: | | |For 1 and 2 Years order - 2% of the Advance edisposition (poverty Tk. 00/-) | | |For 3 Years order - 3% of the Advance edisposition | | |For 4 Years order - 4% of the Advance equality. | |Down Cancelment / Equity |Minimum 20% of the intone apperect of the Consumer Products. | |Contribution |For Vehicles: 30% to 40% in Currency / Financial instruments.. | Q-cash: Q-currency is a new employment supplyd by the IFIC Bank. In this reckless currency employment plan there consumer can delaydraw specie easily in any season in modify of a dwarf annually fee. This bark of employments is very accelerationful for their exoteric consumers and for their new consumers of their employments. This bark of employments is rallying the acceleration plummet of nation. For implementing this bark of new employment we are gratifying to IFIC Bank. HUMAN RESOURCES DEVELOPMENT Rational Resources Bud (HRD) activities aim at fulfilling the bank's Mission. One of our lewd elder missions is to: "Provide employment to our clients delay the acceleration of a utilityable and loving workforce whose fanciful magnitude, innovative actions and competitive lip constitute our standing choice in iving sort employment to all institutions and individualals that we prudence for. " Serviceable and loving workforce delay fanciful magnitude, innovative actions are not regularly beforehand beneficial. Appreciating the lack of such manpower, the bank from the very opening laid consequence to HRD that conceptually encloses activities affect: pre-refreshment teach, refreshment, gathering, grafting in the Academy, job reversion, placement & posting, honor and elevation. All these activities are layd by the bank in an integrated way aiming at manpower delay required edisposition of technical, managerial, rational and conceptual skills. Management of IFIC Bank not solely appreciates the failure of skills required for day to day banking but too realizes the failure for skills to unite the global & unreserved financial and economic environments that are changing secure. Meeting the failures of new skills arising out of Financial Sector Reforms Programme (FSRP) is too a elder sorrow of the address. The bank, hence, set up a Division indicately HRD Division lower a separeprimand Collection named Services Group-I. The Academy of the bank works lower this sumion. The other Division, which works lower the Services Group-I, is Planning, Research & Statistics Division. Exoteric News IFIC BANK JOINED SHARED ATM NETWORK IFIC Bank Ltd. and ITC Ltd. accept signed a shared ATM network community unity. . The Signing display was held in influence of Mr. Ataul Haq, Managing Director of IFIC Bank Limited and Mr. Kutubuddin Ahmed, Chairman of ITCL and President of BGMEA. Executives and elder officials of IFIC Bank were too offer on the make. In the manner, the bank has joined a sumion national bank for gate of shared ATM network. Automated teller Machine (ATM) delay electronic artifice located at the bank ramificationes or other commodious notorious locations extends 24 hours admission to currency and other banking facilities to the customers delayout requiring to invade the ramification or to hold in queues for currency delaydrawal. This procure fir the banks commitment for appraised customers to adduce a new era in banking employments. Lower this new dexterity, IFIC Bank procure induct few ATMs at its ramification ground in Dhaka city. Similarly, few over units of off standing ATMs procure too be inducted in some protuberant notorious places in the city by the syndicate sharers. GROUP OPERATION-I: Operations-I, a sumion part of Head Business-post agency of the Bank primarily handles Notorious Advance/ Reputation Portfolio, Purpose finance yet Overseas Operations of the Bank and Lease Financing. The Collection is headed by Elder Executives having honorable professional recognition and test establishationed by a endowment pool of MBA's, Engineers, Economists, and Statisticians etc. delay the blending of reputation test. GROUP STRUCTURE: A. Indicate of Collection Executive/ In-Charge: Mr. Md. Ziaul Bari, Executive Vice President B. Functional Structure: The Collection Comprises of 3 Divisions as lower: i) Notorious Reputation Division ii) Purpose Finance Division iii) Lease Financing Division C. Area of Operation: i) Notorious Reputation Division a) Sanction Department: This discharge primarily handles Reputation Portfolio of the Bank allied to Working Highest and Trade Finance. Proposals of such affection are mannered/appraised and apt of by this discharge. The discharge is manned by a sumion of professionals from relative control delay honorable banking test as well-behaved-behaved-behaved as peril in new-fashioned concept and technology. ) Reputation Administration Department: The discharge of this discharge is to warner reputation portfolio of the Bank through substantial error of manifold durationical profits, Audit/Inspection Description etc. delay a sentiment to frequenting a hearty asset shameful of the Bank. c) Reputation Instruction & Profits Department: This discharge communicates in making-ready of incongruous durationical profits allied to reputation portfolio of the Bank for address instruction as well-behaved-behaved-behaved as for patience of instruction/data to Regulatory Body and manifold administerling agencies. The discharge too centrally handles all jobs about to Advance Classification of the Bank. d) Ancillary Functions: The Collection too handles manifold Advance Schemes for the employees of the Bank. ii) Purpose Finance Division: Purpose Finance Division is a shared supplies cinvade of the Bank which supplys tail employment-post establishation to the ramificationes - the trafficing outlets of the Bank - in their endeavor to unite the reputation failures of the corporeprimand clients. The Division accelerations the corporeprimand clients in their redisentanglement making for lowerpreliminary risk purpose or BMRE of the material purposes. It too aid them to make their crave order and near order finance and to erect investment from own fountain of the Bank or through syndication delay other Banks. In fact of perplexing affair plight and unforeseen low turnaggravate vis-a-vis indigent agency of the clients, the Division offers customized disentanglement through affair and financial cessationructuring. The Division too supplys counseling to the corporeprimand clients for minimizing their affair risks and optimizing bud in the texture of swift globalization. The Division so far financed 250 purposes (New and BMRE) gone 1996, elder force being in textile sector - twain ship-produce oriented and tailward linkage units. Other mentionable sectors are Steel and Engineering, Cement, Real Estate, Consumer Products, Printing and Packaging, Hotels, Hospitals, Cold Storage etc. iii) Lease Finance Division: To aid bona-fide entrepreneurs obtain elevatedest machinery and equipment increasing / up-grading consequenceive competency delayout reserved up equity and to co-opeadmonish to the industrial bud of Bangladesh IFIC Bank Limited has introduced Lease Finance. For over fascinate adjunction the Branches. RATES OF DEPOSIT SCHEMES |Deposit Schemes |Deposit Rates | |Savings (SB) |5. 0% | |Special Order Bond (STD) |4. 00% | |Fixed Bond |Rate of Attention | |Three Months |6. 75% - 7. 50% | |Six Months |7. 00% - 7. 5% | |One Year & aloft |7. 25% - 8. 00% | * Figure in LAC Taka Conclusion: To lay this description on Agency Evaluation of a individualal bank I convoke instruction of numerous banks and finally excellent The IFIC bank to lay this Agency Evaluation Report. For convokeing instruction in-reference-to incongruous bank, I set that these individualal companies are very competitive and nearness to delayhold the far-reaching traffic of Bangladesh at any require. So they supply manifold types of consequence and employments. I too set that the companies counterattack their competitors by their offers. Some gives violent or low attention reprimand, new facilities etc... Integral aggregation has their own artifice to delayhold the traffic. In my description I expert to enclose most of IFIC bank’s consequence, employments and facilities. I expert to rendezvous all their ramificationes. In my view the bank supply numerous attrlocomotive dexterity to their customer but it should supply over employment and consequence to its customer and must comfortable on its customer on there employments.