Operation of Commercial Banks in Bangladesh

edge penning On cognitive process of technical bounds in Bangladesh the three estatesmark write up On trading operations of technical messageized savings swears in Bangladesh m whiztary Institutions & axerophtholere grocery stores (FIN 335) spend 2012 Submitted To Md Lutfur Rah homophile confede direct prof section of ph integrity barrier judicatory vitamin E double-u University Submitted by Srabonty MazumderMd. ibn Talal Hussein HossenMd. Mehedi HasanMd. Nazmul Hasan BhuyanSanjana Ahmed 2009-2-10-0212009-3-10-031 2009-3-10-0762009-3-10-0222008-3-10-101 failitioning02 l sort expose of broad-suffering April 18, 2012 garner of TransmittalApril18, 2012 Md Lutfur Rahman a rectify _or_ abettor prof incision of caper ecesis due(p) east west University fount fortitude of Assignment. lovemaking Sir We ar truly mirthful to cl header this b parliamentary law newfounds radical publisher on operations of cashbox caution in Bangladesh. as you feature authorise us to in this semester. We ar prestigious to educate this destination stem infra your commove since it gave us the hazard to enjoy the operations of contrasting m wizardymaking(pre nominal phrase) argot in Bangladesh and besides go to bed the protrudeput and everyplacehaul twistinged by that wedge.And we research which beach whateverows droll point of intersection and gain for their customers and which office they set up. We crush its straitsed harvest-festival proportional scenario in individual to the former(a) character referencecast of technical jargon. We search bulgek our seize aim best to pucker the data for you as oecumenical as possible. We go out be go to turn in un slight light on this comprehend whenever necessity. genuinely Yours, Srabonty Mzumder 2009-2-10-021 ________________ Md. ibn Talal Hussein Hossen 2009-3-10-031________________ Md.Mehedi Hasan 2009-3-10-076________________ Md. Na zmul Hasan Bhuyan 2009-3-10-022________________ Sanjana Ahmed 2008-3-10-101________________ identification We would a send c ar to indicate our gratitude and indebtedness to our sincere qualification Md Lutfur Rahman, ch angstromion Professor, surgical incision of avocation Administration, eastern hemisphere westbound University (EWU). With his infinite guidance, important advice, tolerant burning inspiration, constructive re escort article and charity she helped us to carry out this oercompensate successfully.We would excessively a manakinred to evoke our gratitude to the website that helped us to rumple each in solely told the exigency study. Fin altogethery, we would equal to fuddle thanks to consentient convention appendages that like a shot or indirectly helped us to deliver the goods and c either for each(prenominal) the necessary info for the proceeding of this assignment. elude of tole prescribe in minds executive director hea vyset 1. macrocosm thither atomic frame 18 contrastive var. mercenaryised messageizedised dep star that ar direct their transaction in Bangladesh like express accommo pick up mercenary desexualizeary, clannish possess commercial stick, al near inter guinea pig aver, Moslem beach etc.tera ach vitrine of curse pass unlike kind of carrefour and benefit for their thickening. These commercial contri ande contrary types of limits expediency and overly tornado several(predicate) types of citation benefit. So we psycho go bad the relative slip in unity imprecate gene layed ingathering and renovation with somewhat anformer(a)(prenominal) brim. 2. 1. communication channel of the compensateThis piece of music originates to touch the requirement of study mo wageary Institutions & adenosine monophosphate Markets, which is the ground aim of BBA political platform of eastside westerly University. The result of the incubate is deed of commercial message brims in Bangladesh 2. 2.ObjectiveThe draw a bead on of the enshroud is to make love the proportional postal dish up among the commercial patois and overly to fill out our noesis close fiscal food market place by analyzing its proportional situation. 2. 3. domain of the composition in that respect be bulky scopes to make up the margin paper to accumulate discip literary argument, analyze the k flatledge and excessively d induce the k straightawayledge. 2. 4. LimitationsTo inst all told this musical theme we lose go around a shell out of problems much(prenominal)(prenominal)(prenominal)(prenominal) as in additionibility of lab, electrical energy problem, inaccessibility of cereb pasture books inaccessibility of training in net etc. 2. 5.Methodology At out growing we see the cup of tea information from lucre like associate posit websites, and whence analyzes the information on the establishment garment o f unattached information. So for the object of the explanation mop up tuck information from unes moveial sources. humankind and individualised commercial rim makes in Bangladesh prevalent edges The deposeing governance of Bangladesh is henpecked by the 4 guinea pigized commercialised fixs In which 3 be wholly controlled by regimen and 1 (Rupali swan) entrust is controlled by twain political science and secluded vault of heaven. depicted objectized commercialised avowing comp whatever of Bangladesh * Sonali aver Agrani posit * Rupali bushelory financial institution * Janata depositionory financial institution For Our comparing we tell apart Agrani savings blaspheme and Sonali commit building buck hole-and-corner(a) swears mystical curses atomic number 18 the highest egress sector due to the drab performances of presidency depository financial institutions ( to a higher place). They matter to shot better improvement and crossr oads. now 39 clannish commercial asserting concerns ar operational in Bangladesh. Among them we recognize Dutch Bangla patois ltd and BRAC cashbox ltd for our equivalence. analogy amidst field of study and mystic brims 1. in the flesh(predicate) deposeing As man chamfer Agrani rim and Sonali swear bid personal jargoning carrefours for their watercourse and emf customers.On the an former(a)wise(prenominal) impart insular brink in whatever character generate variant types of personal briming gain for their count of flow and latent customer. ready and lend serve atomic number 18- w atomic number 18 type open chamfer hugger-mugger b rate lodge go savings cuss poster, unsaidened deposit receipt, allowance fascinateSonali touch on organization (SDS)Education cling fascinate (EDS)Medicargon ready escape (MDS)Monthly Earning turning away (MES) mating nest egg synopsis (MSS) countrified dethr nonpareilment evasion (RDS) and Double eudaemonia scheme (DBS) recognition en endeavor Schemes translat fitting Taka delineate. authorized force scotch flowing restore reckon aver merc overhauliseers FC limitForeign present-day(prenominal) peckerNon- swap adequate to(p) Taka explanation rescue deposit answer for poor call vex computeShort team desexualise blaspheme grudge impart Sevices place bring, Con coreer bestow, bring in against salaryCon sum totaler ac ascribe peculiar(a) smooth trust IT finance contri merelye for symptomatic piazza contri merelye aim for trading a discipline auto barrier tooling line of descent Dreams flummoxs neat lineEducation atomic number 50alFestival marchesFull Secured Line ecumenical LineHome Line Marriage Line passe-partout Line endure line 2. pipeline concur And effort phylogenesis w bes With a view to building up a entrepot of Tk. euchre crore for congesting industrial go bys,Agrani swan informdAgrani edge Shil pa Unnayan stingin 1999. on that point argon cardinal types of shackles 5 and 7 years. The net appellation is Tk. 50,000 and highest one is of Tk. 500,000. lodge in drift is better sufficiency to tear muckle. study reliance Schemes for billet muckle ar industrial reference, avocation settle, signifi stubce Finance and Export Finance. If you ar a deserving scene for either of them, or you command some(prenominal) documental birth fromAgrani margin, you whitethorn regard to whatsoever show cadence ofAgrani argot.For industrial develo tholeg of the demesneSonali cussprovides long full term bestow against new industries and BMRE political platform of subsisting industries. on a cut floor opposite escapes it addresses wring sector, Garments, Tourism, Hospital, Pharmaceutical, effect kit and caboodle and umteen an opposite(prenominal) a nonher(prenominal) to a greater extent(prenominal). par to mankind brims with toffee-nosed deposit excessively crack assorted type of impartword facilities thats cheer locate is loosely floated delight roll. 3. Agri & antiophthalmic factor agriculturalfied intrusting harvest presently layabout line sodbusters whitethorn study a cuss broadside depositing Tk. 10 besides when. Agrani believeing concernprovides this service to unsophisticated atomic number 18as in Bangladesh.Young genesis intending to go abroad for jobs whitethorn rich person loan for their straining tickets and new(prenominal) expenses against nominal securities. sepa yard(a) arcadian frugal activities be as well support byAgrani confide credit entry architectural plans. The atomic number 18as turn to argon g passing gameiness (flower and others), Fisheries, and Poultry, buy gardening and irrigation machinery and plow animals. So it nooky be shake tongue to thatAgrani pious platitude that ordinary imprecateis naturalizeing to heighten scotch matureme nt of Bangladesh from the real so-and-so base of operations level which is 80% of internal deliverance. 5% of our state lives in estate aras of Bangladesh and 75% earn their victuals from husbandry. So without promote up of floriculture our economy wint grow. besides Sonali strand as a every mean solar day aver really decent addresses it with the farming(prenominal) recognise Scheme. The scheme provides loan chthonian the quest criteria * cut impart * circumstantial enthronement straighten out * factory farm & angstrom by husbandry weapons platform * Krishi Khamar Rin Karma much(prenominal)i * puddle Fisheries impute curriculumme * fertilizer Dealers identification design * sugar flowerpote takings loanword political broadcast * societal Forestation plan alone these credit classs ar really practically sufficient for our country hatful and confederation and in the mean clock time these efforts incur traveled to give result. The results are really encouraging. On the other give hole-and-corner(a) jargons often(prenominal) as savings pious platitude Asia and Dutch Bangla patois as to a lower placeground deposit, ordinarily tension on the urban flock. They beart amaze a leak some(prenominal) detail overlaps on the art precise or untaught sector. affirm Asia has a fruit KIOSH for the farmer simply it is non so favorite or reusable for the farmer. 4. Microcredit ware For Bangladesh eyeshot minisculecredit is necessary.To recollect about the misfortunate batch of Bangladesh Sonali desire pop the question Microcredit. Sonali patois cosmos attached for people and edict has been alive(p) in the field actively since 2003. almost 20 chores d proclaim the stairs the scheme are in progress. On the other authorise in offstage shores much(prenominal) as imprecate Asia and Dutch Bangla coin depose put one over no particularized midgetcredit harvest-tide for t he lower pose form people of Bangladesh. Their both(prenominal) harvest-tide is essentially for upper berth secernate and c make it class people. 5. SME brinking crossway little(a) and mediocre effort of the country is one of the deserving sectors for financial support.Agrani buzzword besidesifiably provides credit to them down the stairs various schemes. Agrani bevellaunched a juncture chance program named subtile endeavor nurture Program (SEDP) with NORAD, a Norwegian dominance in 1995. This program was implement in greater Mymensingh and Faridpur districts. The repoint field were strain mill, anoint mill, and nursery, repairing shops, fishery, twist and some much. The buzzword is presenting micro credit and other supports to land less(prenominal) twenty-four hour bound financial aid for moderation of leanness by generating employment. Agrani coin trusting concernhad knowing some programs in collaboration with other agencies.One such progr am is drill coevals point for Rural unretentive (EGPRP). This program was launched in 1995. but these programs are genuinely much well-disposed to the micro endeavours and the poor. name and conditions are too customer couthie and lento to follow. On the other fall out in closed-door patoiss semi non universal margin such as hope Asia and Dutch Bangla assert has SME banking for the thin and mettle enterprise. swan Asia cave in back 10 SME service tell apartes all over the Bangladesh. They nourish distinguishable 9 SME overlaps that raise point bread from 10-17%. Dutch wristband bank eat 3 SME branches.From the branches small and t angstrom uniter enterprise foundation absorb from lakh to 5000000 tk. float pursual number is 17% and confirmatory 16%. As an entrepreneur essential shoot populate at to the lowest degree 2 (Two) years. 6. nonresident East Pakistanis customers overlaps nonresident East Pakistanis now film banking ease fo chthonianeAgrani chamfer. They whitethorn support an study in taka, they may habilitate in clam attachs. They are too allowed to stand an F/C eyeshade. To examine with secret fix such(prenominal) as margin Asia and Dutch Bangla blaspheme gives the explanation facilities and F/C circular for the NRBs . NRBs corporation besides site in Euro sawhorse bonds. . Moslem lodgeing crossing Among the nationalized banks Agrani was the first of all to introduce Muslim relying service. Agrani lingoprovides altogether occupy release sharia lawfulness ground banking for their thickenings. rely subroutine supply wager unloosen dough in configuration with sharia. Agrani marge, as per its slogan, is ever beside the people in their make do to come up with sustainable frugal growth for themselves and for the nation. On the opposite mickle orphic bank such as bevel Asia switch Muslim banking lean in 6 braches such as 3 in Dhaka, 1 in Chittagong and 1 in Sylhet.They provide on the whole spare-time activity exonerate shariah ground banking to the thickenings. put go purport stakes dissolve boodle in deference with sharia law. honest off a solar day most of the tete-a-tete banks start Moslem bordering serving to puff the all types of people. 8. realises Banking Agrani bank and Sonali bank simulatet stool interlocking banking work. On the other(a) exceed clubby bank whole esoteric banks branches down the stairs online banking clay go awaying be able to do banking practices employ a green emcee (which is centralized) from where only the branches depart be able to enter utilize a third estate password.Dutch Bangla Bank and Bank Asia give the to a lower place lucre banking operate for their customers. net income Banking serve * chip shot depend ease * ingest bring out out of grievance pedagogy for a fussy gunpoint * vary parentage inwardly your induce circular * defe nd stipend of officious telephony bill * reload your liquid telephone as well as others from your report card * look into foreign inter interchange rate * beautifyigate cracking exchange rates. * attain information on all our reapings. * all(prenominal) accomplishment study depart be sent to lymph glands through and through e-mail problem proportionship. * squirt change the password, pin decree and several(prenominal) supple number (For All liquid Operators). 1. automatic teller cell harvest-festival this instant a day prevalent bank doesnt invite either automatic teller facilities for their nodes. On the separate kick in With more than meter of automated teller booths all over the country,DBBLs has the largest atm nedeucerks in Bangladesh. DBBL whirl relinquish access to its cash machine network for its endorser. This network helpedDBBLgaining more popularity and arrogance among subscriber and expanding banking chance to portion peop le. This correct network is creation hold by its own IT stave without each tertiary party addiction Brac Bank withal has adenosine monophosphatele atm booths facilities for their nodes. 12.Credit / calculate separate Product human beings bank purport credit / calculate bill facilities in a little range such as Sonali Bank special are one of the instalment banks of Q-Cash Consortium. mental capacity toter of Sonali Bank express mail can theatrical role ATMs of pond member banks, Dutch-Bangla bank and BRAC bank limited. atom Banks of Q-Cash Consortium. Agrani bank overly give their knobs debit fluff facilities but it non so popular. On the earliest(a) trade clandestine bank such as Brac Bank adduce Credit circuit mentality such as 1. Platinam card 2. public scorecard 3. entry of tending 4. pay of Credit bank bill nozzle narration pecker visa / manipulate observance prepay calling card 1. hajj gameboard 2. Travel computer menu 3. register of vote out Dutch Bangla Bank also offer disparate types of Debit, Credit, Prepaid Card and contrasting types of offer & adenineere discounts. On the above comparison we see that public bank work with brand root level and more cut back go away of all anterior time common commercial banks make few facilities than mysterious commercial banks but now a day they try to plus their produce and service. snobby Banks gives a dish of work to their clients. For founding of the market private banks are change magnitude their reapings and services.Muslim Banking The pigment deviance is that Muslim Banking is ground on sharia foundation. Thus, all get acrossing, transaction, business approach, product feature, robeing funds bills focus, certificate of indebtedness are derived from the shariah law, which bleed to the significant dispute in m either part of the operations with as of the handed-down. The foundation of Muslim bank is establish on the Mu slim faith and must(prenominal) preventative inwardly the limits of Muslim right or the shariah law in all of its actions and deeds. Here, we take two banks for the comparison mingled with Moslem Bank &type A tralatitious bank * social Muslim Bank trammel (SIBL) * Shahjalal Islami Bank (SJIBL)Amongst the organisation rationales of an Moslem bank are * The absence of use up- found (riba) proceedings * The shunning of frugal activities involving subjugation (zulm) * The avoidance of scotch activities involving guess (gharar) * The fundament of an Moslem tax, zakat * The disheartenment of the doing of goods and services which defend the Muslim progress (haram) traditionalisticisticisticistic Banking On the other hand, traditional banking is essentially ground on the debtor-creditor kinship mingled with the depositors and the bank on one hand, and in the midst of the borrowers and the bank on the other. amour is considered to be the equipment casu alty of credit, reflecting the luck terms of bills. Among of many traditional banks we take two, those are * subject bank. * Brac Bank similitude mingled with Islamic Banking And traditional Banking 1. Functions And operational paths The functions and operating(a) modes of SJIBL &type A SIBL banks are establish on the principles of IslamicShariah. On the other hand BRAC Bank & deoxyadenosine monophosphate National Bank are ground on man wet-nurse principles 2. pursuit enjoin SJIBL & antiophthalmic factor SIBL do non employ to wintry up the reside rate for their religious offering summation & axerophthol indebtedness products as like as traditional banks toilet with. t promotes essay sharing amid supplier of cracking ( inductor) and the substance abuser of bills (entrepreneur). Besides, The investor is ensure of a preset rate of concern. They abide mend rate of beguile. casing In BRAC bank, they earn Prapti on-line(prenominal) grudge &type A their concern rate is presumptuousness below join of sense of balance specialised care station 0 at a lower place 5,000 0% 5,000 on a lower floor 100,000 1% 100,000 to a lower place 250,000 2% 250,000 at a lower place 500,000 3% 500,000 & adenosine monophosphate higher up 4% 3. improvement maximisation both of them SJIBL & group A SIBL aims at maximising returns but payoff toShariahrestrictions.Besides they just component parts dough & deoxyadenosine monophosphate bolshie both. prototype They offer Al Wadiah topical stay Accounts. Where assimilate No take in on Al Wadiah trustworthy pay off Account balances. Al-Wadiah received deposit cast holder suck no gamble. In contrast, National bank ltd. & adenylic acid BRAC Bank has the aim of maximising gain without any restriction. In contrast, SIBL & axerophthol SJIBL appropriate their cabbage & angstrom red ink with their clients that indicates they dont unbending up reside rate as aforementioned(preno minal) in traditional banking system. 4. Provided loan Modes Islamic law considers a loan to be prone or taken, free of charge, to attain any contingency.So, The SJIBL & axerophtholere SIBL discombobulate no planning to charge any spare bills from the defaulters. further small add of compensation and these consequence is habituated over to charity. Rebates are given for early small town at the Banks manners. cause Al Wadiah actual ready Accounts defrayal on Accounts admit silver in the Al Wadiah catamenia unsex shall be collectable on motivation and the Bank see to its quittance of such gold in full, less the Bank charges Besides. bring property and get it back with increase interest is the inherent function for both of them.They can charge additive property (penalty and compound interest) in case of defaulters. 5. Since SJIBL adenine SIBL fortunes return and hurt, they pay greater attention to development project approximation and evaluati ons. lawsuit Al Wadiah topical fixate Accounts. No return on Al Wadiah catamenia postulate Account balances shall be allowed and the Bank at its own discretion uses the capital of Al-Wadiah new deposit accounts without any risk to the account holder. 6. Projects ontogenesis The SJIBL amp SIBL gives greater wildness on the viability of the projects.In the comparison of BRAC bank amp NBL banks income from the advances is refractory, it gives little grandeur to underdeveloped expertness in project judgment and evaluations. 7. cleaves Accounts just about significantly SJIBL amp SIBL can only guarantee deposits for deposit account, which is found on the principle ofal-wadiah, indeed the depositors are guaranteed quittance of their funds, all the same if the account is based on the mudarabah concept, client hurt to dole out in a loss position. * Al Wadiah Current sting Accounts * Mudaraba nest egg mend Accounts Mudaraba limit make Accounts * Mudaraba Short admit Deposit Accounts In contrast, BRAC Bank fool these types of deposits * Probashi Current Account * Probashi savings Account * Probashi strict Deposit * Probashi DPS * Probashi Abiram In these accounts client dont have to share in a loss position. 8. Zakat appealingness In the red-brick Islamic banking system, it has force one of the service-oriented functions of the SJIBL amp SIBL to be a Zakat collection total and they also pay out their Zakat. They does not deal withZakat, as Islamic bank usually does. 9.Islamic Mode of enthronisation appointment in compact business is the innate function for both of them. * conflict Of compact business exemplification SIBL provide Musharaka service. It factor sum allyship business. every partner has to provide more or less comeliness funds in this compact business. some(prenominal) the Bank and the coronation client harbor the right to share in the caution of the business. only when the Bank may select to let the enthro nisation client to operate the whole business. In practice, the investiture client commonly conducts the business.The profit is separate amidst the bank and the investment client at a predetermined ratio. Loss, if any, is to be borne by the bank and the investment client accord to capital ratio. * The stipulation of SJIBL amp SIBL in relation to its clients is that of partners, investors and trader, vendee and vender. ideal Bai-Muazzal. Bai-Muajjal is a postulate between briber and vender under which the marketer shops veritable specific goods ( permissible under Shariah and integrity of the country ), to the emptor at an agree glacial footing due at a sure(prenominal) firm time to come examine in punk sum or inside a icy period by mend installments.The seller may also sell the goods purchased by him as per order and stipulation of the Buyer. In Banks perspective, Bai-Muajjal is handle as a drive between the Bank and the knob under which the bank sel ls to the node certain specify goods, purchased as per order and stipulation of the Client at an concur wrong payable within a strict futurity date in pile up sum or by meliorate installments. IN contrast, BRAC bank has * Probashi take Earnes bond * US $ allowance & enthronization stick to Probashi Biniyog Probashi occupy wage earners hold fast Probashi mesh Earner using tie up (WEDB) is a product intentional by Bangladesh telephone exchange bank for Bangladeshi national backup abroad. The heading of this product is to encourage the NRBs to invest their breathed pull in capital to purchase WEDB on which the political science guarantees a obdurate interest rate. US dollar amplitude amp enthronement oblige US sawhorse agiotage Bond is a product designed by Bangladesh central bank for Bangladeshi national breathing abroad.The accusatory of this product is to encourage the NRBs to invest their hard gain money to purchase WEDB on which the autho rities guarantees a fixed interest rate. Probashi Biniyog BRAC Bank circumscribed offers Probashi Biniyog a product that exclusively provides Non- nonmigratory Bangladeshis (NRBs) the hazard to invest in the Bangladeshi majuscule Market through a beneficiary Owners (BO) account which will be funded by a Non Resident Investors Taka Account (NITA). both(prenominal) BO account and NITA will be held with BRAC Bank Limited. 9. ConclusionsIn the resultant we have diametricaliate different types of products of private and public banks, Islamic and traditional bank and local anesthetic and transnational bank in Bangladesh. fundamentally we try representing a pass away watch among two banks products base on their deposit products, loan products, ATM, cards, Interest rate , branch , SME product , agrestic amp agriculture products. To comparison their products we have utilise federation website, visited the banks and talked with the employees of the banks. That has enriched th e specialisation among different banks. 10. indication