Chapter one

Rationale of the report:

The report titled RETAIL BANKING POLICY IN BBL: Policy and management from Approval to recovery there of: a BBL perspective” prepared   to fulfill the requirement of the internship program of the BBA degree in school of business, Daffodil International University. Dhaka.

 The banks provide different types of product and services to its counter parts like, retail banking (unsecured) services or finance or investing which results transaction of currency. To do this they also need capital, assets and other resources. These elements of business results, changes in their capital, assets and other factors which effects directly in the banks performance. This report will be helpful to understand the performance of the BRAC Bank limited compare to some other local banks and as well their strengths and weaknesses. As a result we can easily rank the banks position which will give us the idea of banks capabilities. The purpose of preparing this report is to scrutinize the RETAIL BANKING POLICY IN BBLthat means to identify whether expenditures or earnings overlap each other.

Origin of the study:

This report has been prepared as a requirement of the internship program of school of business, Daffodil International University Dhaka. The organization attachment stared on 01^st April 2008 to 20^th July 2008. This report on RETAIL BANKING POLICY IN BBL was assigned by Mr.Sahajahan Mina, Advisor Daffodil International University  Dhaka, as a part our education programs to complete our graduation.

Objective of the report:

More specifically, this study entails the following aspects:

• To measure Investment in Bank products of the Sales unit.
• To measure door to door banking habituate of our countries people

Scope of the report:

This report gives a narrative overview of the BRAC Bank limited. Any development of BBL thereafter is thus out of the scope of the report. This report consists of the writer’s observation and on the job experience during the internship period. Topic of the report is study on RETAIL BANKING POLICY IN BBL. Finally, this report incorporates an evaluation of retail banking activities, and the different aspects of cost and income assessment of investment police of the bank.

Methodology of the report:

The report is a combination of primary and secondary data analysis along with financial analysis.

To accomplish the report both primary and secondary data are necessary. Primary data is collected though meetings, surveys and secondary data are collected through annual report. Book, articles, journals, brochures, website etc.

•  Primary data:

The primary data of this report are:

•  Direct interview of senior product manager of the bank.
• Practical experiences gained during performing duties in different desks, department and marketing of unsecured value center at Gulshan-01.

• Ø Secondary data:

I collected secondary data from the following sources:

• Annual report of BBL.
• Printed forms and documentation supplied by BBL.
• Booklets of international division of BBL.
• Different publications and journals regarding banking activities and policies.
• Auditors report of BBL.
• website of BBL (www.bracbank.com)

Limitation of the report:

• Preparing an assignment on a book is quite difficult for an individual. it was hard for me to gather the data in such a short period of time.
• Insufficient supply of relevant books and journals.
• Bank officials for security reasons, declined the request for providing information in some crucial issues.
• In many cases, up to date information was not published.
• Three month is not adequate time to gain practical knowledge and prepare a report.
• The employees of the bank are so much busy so they cannot give me enough time for information about the accounting system of banking such as journal, brochures writing etc.

Chapter two:BRIFE HISTORY OF BRAC BANK LTD

• Ø An overview of BRAC Bank Limited
• Ø Concept of BRAC Bank Ltd
• Ø Vision
• Mission
• Ø Objective of BRAC Bank Limited
• Ø Financial Parameters BRAC Bank Limited
• Ø Graphical Presentation of Parameters of BRAC Bank Limited

An overview of BRAC Bank Limited

Date of incorporation:                                             20 may, 1999

Date of commercial operation:                              4 July, 2001

Date of commercial operation of sales center:    1^st January 2002

Not of branches:                                                       56

No of ATM booth:                                                   52

No of CDM (cash deposit machine):                    10

BRAC Bank Ltd. bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 4^th July, 2001. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country’s Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the browse helped the company to a great extent in this regard. This bank signing with shore cap as invest 29^th December 2003, signing with IFC as invest 08^th may 2004, preferential share issued 31st January 2006, first ATM installed 3^rd April 2005, phone banking operating 9^th September 2006, commencement of share trading in DSE and CSE in 31st January 2007, credit card launching in 06^th February 2007, Quick Loan launching in 01st November 2007. Now their have 55 branches, 48 ATM booths, 06 Deposit Booth. Our total number of employ is 3000 in our organization, 2007-2008 financial year total profited is 1.60 hundred cores.

The Bank has set up a new standard in financing in the Industrial, Trade and retail banking unit develop credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business with the Bank.

Summary of Shareholding structure:

BRAC                                                  -31.74%

IFC                                                       – 9.5%

Shore cap                                           – 8.76%

General public through IPO           -40%

Non- residents Bangladeshi’s        -5%

Mutual fund                                      -5%

Total                                                     100

Services:

• Internet banking
• Phone banking
• SME banking
• Retail banking
• Non-stop banking
• Locker facility
• 24 hours ATM facility
• OMNIBUS

Concept of BRAC Bank Ltd

BRAC Ltd. bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 2003. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country’s Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the browse helped the company to a great extent in this regard. The company operated up to 2001 with 15 branches and thereafter with the permission of the Central Bank converted in to a full fledged private commercial Bank in 2002 with paid up capital of Tk. 32.00 core to serve the nation from a broader platform.

Since its inception BRAC Bank Ltd. has acquired commendable reputation by providing sincere personalized service to its customers in a technology based environment.

The Bank has set up a new standard in financing in the Industrial, Trade and Retail Banking unit. Its various deposit & credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business with the Bank.

Vision:

• Sustained growth in ‘small & medium enterprise sector
• Continuous low cost deposit growth with controlled growth in retail 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 BRAC field officers for deliver of 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 drivers far flung team fully motivated and driven towards materializing the bank’s vision into reality.

Mission:

Building a profitable and socially responsible financial institution focused on marketing and business with growth potential thereby assisting BRAC and stakeholders build a just, enlightened, healthy, democratic and poverty free Bangladesh.

Objective of BRAC Bank Ltd:

Maximization of profit through customer satisfaction is the main objective of the bank. In addition, the others relevant objective are:

• To be market leader in quality banking products and service.
• Active excellence in customer service though providing the most modern and advance technology in the different spheres of banking.
• To participate in the industrial development of the country to encourage the new and educated young entrepreneurs to under take productive venture and demonstrate their creativity and there by participate in the national development.
• To provide credit facilities to the small and medium size entrepreneur located in urban and sub-urban area and easily accessible by our branches.
• To develop saving attitude and making acquaintance with modern banking facilities.
• To play a significant role in the economic development of the country.

Financial Parameters of BRAC Bank Ltd:

Graphical Presentation of Parameters of BRAC Bank Ltd:

It can be seen from the table and the graph that the parameters of BRAC Bank Ltd. It represents the Assets then deposit and last position investment.

Chapter 3

Management of BRAC BANK LTD

The board of directors of BRAC bank limited:

• Chairman of BRAC bank: Mr.fazle Hasan Abed
• Managing director: Mr. Imran Rahman
• Director: Sayed Humayun Kabir
• Director: Md. Aminul Alam
• Director: Quazi Md. Shariful Ala (Nominated by BRAC)
• Director: Mr. Paul D. Christensen (Nominated by shore cap)
• Director: Muhammad A. (rumi) Ali (Nominated by BRAC)
• Head of HR: Tahniyat A Karim
• Chief operation officer (COO): Kaiser Tamiz Amin

Chapter 4: About the Products Of  BRAC BANK LTD

Liability Product:

This is the product that’s increase BANK fund. So, fund increasing product is called Liability Product.

A. Transactional Account (TA):

1. Savings Account:

 (For all kinds of customer)

(With cheek book & ATM Facilities)

Initial deposit                                                                       TK. 2000

Interest rate                                                               5.5% (Yearly)

Interest payment                                                      ½ (Yearly)

Cheek book                                                               TK. 800+15% VAT (25 page)

ATM (automated teller machine) card                 TK. 520+15% VAT facilities

Transaction limit trough ATM (VISA)

From ATM Booth                             : maximum TK. 50000 daily

From POS (point of sales)               : maximum TK. 300000 daily

2. Current Account: with cheek book & ATM facilities

                                 (For all kinds of customer)

(With cheek book & ATM Facilities)

Initial deposit                                   : TK. 15000

Cheek book                                       : TK. 800+15% VAT (25 page)

ATM                                                   : TK. 400+15% VAT

Transaction limit trough ATM card

From ATM booth                             : maximum TK. 100000 daily

From POS                                          : maximum TK. 300000 daily

3. EZEE Account:

 (For all kinds of customer)

(Only ATM Facilities)

Initial deposit                                   : TK. 2000

Interest rate                                       : 4% daily

Interest payment                              : ½ yearly

ATM (VISA card                              : TK. 520+15% VAT

Transaction limit trough ATM (VISA)

From ATM Booth                             : maximum TK. 50000 daily

From POS                                          : maximum TK. 300000 daily

4. Campus Account:

 (Only for Student)

(Only ATM Facilities)

Initial deposit                                   : TK. 2000

Interest rate                                       : 4% daily basis

Interest payment                              : quarterly

ATM card                                          : TK. 490+ 15% VAT

Transaction limit trough ATM

From ATM Booth                             : maximum TK. 50000 daily

From POS                                          : maximum TK. 300000 daily

5. Bizess Account:

(This is Business Account)

(With cheek book & ATM Facilities)

Initial deposit                                   : TK. 10000

Interest rate                                       : 4% daily basis

Interest payment                              : ½ yearly

ATM card                                          : TK. 400+ 15% VAT

Cheek Book                                      : TK. 1000+15% VAT (25 page)

Transaction limit trough ATM

From ATM Booth                             : maximum TK. 100000 daily

From POS                                          : maximum TK. 300000 daily

6. Femina Account:

(Only for House Wife)

(Only ATM Facilities)

Initial deposit                                   : TK. 2000

Interest rate                                       : 7.5% daily basis

Interest payment                              : Monthly

ATM card                                          : TK. 590+ 15% VAT

Transaction limit trough ATM

From ATM Booth                             : maximum TK. 100000 daily

From POS                                          : maximum TK. 300000 daily

7. Short Term Deposit (STD):

Initial deposit                                   : TK. 15000

Interest rate                                       : 5% daily basis

Interest payment                              : ½ yearly

Minimum balance                            : TK. 100000

ATM card                                          : TK. 400+ 15% VAT

Cheek Book                                      : TK. 800+15% VAT (25 page)

Transaction limit trough ATM

From ATM Booth                             : maximum TK. 50000 daily

From POS                                          : maximum TK. 300000 daily

8. Deposit Premium Scheme (DPS):

Minimum balance TK. 500

Cheek list: (For account opening purpose)

• Two passport size photographs of each account holder attested by the introducer.
• One passport size photographs of nominee attested by the account holder
• Recent utility bill or other bank statement
• Counter signature of applicant for any correction
• Photo ID for identification (must be valid):
  • Passport
  • Trade license
  • Driving license
  • Student ID
  • Voter ID
  • Organizational ID
  • Commissioner certificate

B. Fixed Deposit Receipt (FDR)

1. 1.    Fixed Deposit (FD):

Minimum balance                            : TK. 50000

Tenor                                                  : 1 month (9.5%)

3 month (13.5%)

6 month (13.5%)

12 month (13.5%)

Below 1 lac                                       : 8%

OD facility                                        : 95%

2. Interest First Fixed Deposit (IFFD)

Minimum balance                            : Tk. 100000

Tenor                                                  : 3/6/12 month

Interest rate                                       : 10.75%

OD facility                                        : 80%

3. Abiram

Minimum balance                            : Tk. 100000

Tenor                                                  : 12 month (interest rate 10.75%)

Tenor                                                  : 24/36 month (interest rate 10%)

Interest payment monthly

OD facility                                        : 80%

4. Step up Fixed Deposit (SUFD)

Minimum balance                            : Tk. 100000

Tenor                                                  : 3 Years

Interest rate for 1 year                     : 10.75%

Interest rate for 2 years                   : 11%

Interest rate for 3 years                   : 11.5%

OD facility                                        : 95%

5. Money multiplier:

The rate of interest & tenor

ASSET PRODUCTS

These are the products that BANK provide and earn money. So earning source of BANK is called ASSET PRODUCTS.

• Ø SME (Small & Medium Enterprise)

• Ø Personal loan (Unsecured)

v Quick Loan (Only for business man)

v Teachers Loan (Only for Teacher)

v Doctors Loan (Only for Doctors)

v Salary Loan (Only for Service Holder)

• Ø Personal Loan (Secured)

v Car Loan

v Home Loan

v Over Draft

• Ø Corporate Loan

v CC Hypo Loan

v Project Loan

v LC Loan

v Business Loan

Basically I am working in BRAC BANK Ltd as an executive in QUICK LOAN Division. So I broadly explained about QUICK LOAN

QUICK LOAN

Quick loan is a loan facility offered by the Retail Banking Division to the businessmen who has a sound business record for minimum 2 years (for category A) or minimum 3 years (for category B) with a valid trade license. It is a clean or unsecured loan in the sense that there is no cash security taken against the loan.

►Category “A” means who have permanent address of city or branch’s operation Area

►Category “B” means who have no permanent address of city or branch’s operation Area

This is an “any purpose” loan, which means the applicant does not have to declare the purpose for which s/he is taking the loan.

Fundamental Guidelines have been established specifically for Quick loan in order to provide a structure around which lending must be best.

• Assess the customer’s character for interiority and repay.
• Plan for the possibility of default.
• Use common sense and past experience in conjunction with through evaluation and credit analysis. Behave ethically in all credit activities.
• Be proactive in identifying, managing and communicating credit risk.
• Be diligent in insuring that credit exposures and activities comply with the requirement set out in this Product Program.

Product title –Quick Loan

Easy Messages of the Quick Loan

EMI for different amount loan and terms

For loan processing document:

• Photograph – applicant 1 copy
• Latest 12 month’s Bank statement
• Copy of current valid trade license (front & back)
• Tow years business proof (in same business)
• Visiting card
• Proof of ID
• Proof of permanent address with in the city or town areas where the bank has its operation (for category “A”)

DESA/WASA/GAS bill copy which is the name of own, spouse, parents

• 2 PG (Spouse or family member another is business man in city corporation areas)
• If joint stock company:

MOA with incorporation certificate

• If partnership company:

Partnership deed

Different Types Income Assessment

Debt Burden Ratio (DBR)

Debt Burden Ratio (DBR) is the ratio between applicants’s proven monthly income & total monthly repayments to wards all loans & credit cards.

General rules of calculating DBR for all categories:

DBR= (All existing & proposed EMI’s + 5% of credit card limit)/Net Monthly Income

It represents the portion of his/her monthly income which can be used to service the loan installments or EMI

So net income assessment is the most important factor to determine DBR correctly

Net income assessment for salaried person:

Net monthly income = gross salary – (provident fund + taxes + leave fair allowance + overtime, TA/DA, bonus, yearly, quarterly if shown in the monthly break down)

Conditions apply & statements check:

• Daily allowance, overtime, mobile bill will not be considered for assessing net income
• For salaried executives, statement is checked mainly to determine regularities of salary credit & to see if salary credited is line with claimed salary of letter of introduction
• To find out if any undeclared other loans installment deducted
• Any chq return due to insufficient fund not be considered

Net income for business person:

The following types of accounts those are considerable for assessing net income

1. Personal account
2. Proprietorship account
3. Partnership account
4. Private limited company account

Income assessment criteria through bank statement:

The way of income assessment form account statement may be two ways:

Criteria 1: income through credit turns over

Criteria 2: income through average balance

Criteria 1: income through credit turns over:

This is method may be used foe all above accounts. So income=average monthly credit turnover * the share percentile of that individual over the whole business *

Industry wise profit margin percentile

In other words

Average monthly credit turnover = summation of total monthly credits over the period (months)/total months

Revenue = average monthly credit turnover * industry wise profit margin percentile

Net income = % of revenue as per ownership documents

Not: in profit margin sheet we have found that profit margin mentioned as 10% -15%, 5%-10% etc. it mean that in same business profit vary. Some one can profit 10% some one 12% some one 15%. It may vary case to case basis because of business size, business place, business age, individual’s profit/net worth etc

Criteria 2: Income through average balance:

To save time but still determining a good indicative average balance, we will not do the averaging over the full 30 days balance of an account, instead we will take the following days of any month will be taken into consideration in order to arrive at the average valance figure for that particular month

Days of monthly 1^st, 8^th, 16^th & 25^th

Average balance for the month: total day end balance/4

Average monthly income: total months average balance/ total months

Monthly net income: average monthly income x % (discounting as expense)* incase of partnership & limited company net come will be based on % of ownership

Note: % consideration (discounting as expense)

1. Personal A/C             : 60%
2. Proprietorship A/C   : 60%
3. Partnership A/C        : 60%
4. SOD A/C                    : 60% (if the facility backed by 100% cash security)
5. OD/CC                       : 20%
6. Limited Company    : 20%

Finally income to be considered either criteria no. 1 or whichever is lower

Net income from CC/OD/SOD Account:

BDR= (all existing & proposed EMI’s + Monthly OD interest + 5% of credit card limit)/ net monthly income

Day End Balance of CC/OD/SOD A/C: OD limit – day end balance

OD Account Interest: monthly interest of OD account will be considered with EMI

CONDITIONS APPLY & STATEMENT CHECK:

• To find out if any undeclared other loans installment deducted
• At least last 6 months bank statement to be considered and/ or following PPG
• Any check return due to insufficient fund will not be considered
• Mode of transaction should be matched with customer’s profile
• Account swing of the overdrawn balance is to be observed
• Account discipline of the overdraft account to be observed
• Terms & conditions of sanction advice should be match with account statement
• Trend of average monthly credit turnover and nature of transaction to be matched with nature of business
• Any extra ordinary credit volume of a particular month will not be considered that may have arisen out of a non business transaction like sale of property, liquidation of security etc

Incase of limited company:

• The bank will obtain the MOA A schedule of – 10 (the document which shows company’s latest status of shares after the shares are handed over/taken over) & schedule – 12 (to see the particulars about directors)

• Company statement with credit facility will not be considered for assessing individuals income

Conditions apply:

• When rental income is added in total income then minimum 40% of the rental income should be reflected in the personal account in the form of credit balance.
• Valid rental agreement, ownership document, rent receipt, latest municipal tax payment receipt & electricity bill should be provided.

Conditions apply & statement cheeks:

• Salary may be considered if reflected in the bank statement
• If the income derives from salary account then salary should be deducted from average monthly income.
• Age of consultancy / private practice should be supported by documents
• Copy of registration certificate from BMDC should be provided
• Copy of professional certificate should be provided

GENERAL TERMS AND CONDITIONS:

1. Maximum 3 bank statement (personal + company) to be considered
2. Joint account only with spouse to be considered
3. In case of car loan min. Tk 12000/= should be considered with EMI as monthly additional expenses for car maintenance.
4. Uncommitted monthly income (UMI) should be minimum 2.5 times of EMI (it may be vary case to case basis)

Chapter 5

RISK MANAGEMENT

Credit risk

The credit risk is managed by credit division, which is independent of sales. The following elements on tribute to the management of credit risks:

• Repayment ability and intention of the borrower the primary factor of consideration in granting a loan will be the debt-burden ratio of the borrower. The debt-burden ratio is calculation on the basis of the net monthly income of the customers.

• While the product is targeted at a particular market segments the risk is mitigated to some extent by the fact that these customers will have a sound credit borrowing track record of minimum 3 months with another bank.

• Geographic location the coverage of the product will be restricted to the cities where we have branch representation: Dhaka, Chittagong and sylhet.

• Deviations: deviations from the credit criteria have been defined and will be subject to strict monitoring.

• Exposure per customer: exposure per customer is capped in the basis of his/her credit card limit.
• MIS is maintained: on portfolio mix (to identify concentrations)

POLITICAL RISK

Internal

The political situation in Bangladesh continues to remain confrontational among title major parties. There is frustration that the political leadership, both in power and those in opposition, has been unable to work together to end the impasse created by the public sectors extreme inertia and weak capacity.

External

Relationship with neighboring countries is fairly good at present. Risk of external threats can be considered to be negligible.

APPROVAL AND DISBURSAL

Loan applications are processed for approval according to criteria established in this product program guide. Account solicitation, approvals and disbursement sanction authorities are as per the operation manual.

SAFEGUARDING OF DOCUMENTS

All signed customer documentation is maintained by the centralized loan administration department in fore resistance filing cabinets inside the strong room under dual control. The bank’s legal counsel has vetted all documents.

OPERATING PROCEDURES, RECONCILIATION AND REPORTING

The operating procedures, work flows, reconciliation checks, controls as well as MIS and reporting are being detailed in the operation manual. These should be done by loan administration department.

RISLL OF APPLICATION FAUD ANHD ITS MITIGANTS

While we are obtaining the necessary documents to ensure accuracy information provided by the applicant on the application from there is a risk of fraud. To mitigate this, the following checks are carried out

• Telephone verification of residence address
• Monitoring of loan portfolio outstanding on a regular basis

 Learning part

This is the most important part in this report. Because these part help me in my future. In this organization I work in QUICK LOAN division. For that reason I explain at this juncture only QUICK LOAN broadly. These are

.

I Learn,

v How to Calculate the DEBT BURDEN RATIO (DBR) that shows the customer is eligible or not for LOAN & if eligible how much he get.

v How to analysis a BANK STATETMENT. Because the analytical report shows how much earns customer every month.

v What is Central Information Burro (CIB) & how its affect in LOAN.

v What is Post Dated Chaque (PDC) & why it’s collected from the customer.

v What is Equally Monthly Income (EMI) & Average Monthly Income (AMI).

v How to manage a customer

v MIS part in an organization

v BANK products which one is liability & which one Asset.

v What type of customer eligible for Loan?

Chapter 6

PROBLEMS

In my learning period I found some problems, in retail Banking. That’s as Follows:

• High Interest Rate.
• High Rate of processing fee against loan.
• A/C maintains fee is so high.

• Lack of manpower in retail Banking is a big problem. The manpower of that section is not sufficient for prompt service.
• Lack of promotional initiatives to expand the Service.
• From the previous years it has been observing that frequently the loan hidden cost increasing and customers suffers most.
• Government new regulations like as Reduce Interest Rate is not affective..

• In a organization job satisfaction is a fact. Employees of that department should not satisfy so this is a great problem that I face.

RECOMMENDATION

BRAC bank is a progressive commercial bank in banking sector. Quick Loan department is a important part in this BANK. But Quick Loan Department is not fully computerized as yet. So, it is very difficult to find any thing within a very short period for quick customer service. To improve their Quick Loan customer service and to, the following recommendation can be suggested.

• Computer facility in all sector: Now a day, to survive  in the competitive market, bank  has to provide various facilities to satisfy the customer, the service should be swiftly, timely, accurately and good behavior pattern. And to provide these facilities to the customer, computer is a must. Because by maintaining registers or by keeping information manually it is not possible to provide swift and accurate facilities to the customer. Therefore there should be computer in every desk in  Quick Loan Department
• Immediately increase the salary of the employee.

Higher Rate of Interest for Loan

Clients generally complain that rate of interest for various types of Loan are quite high. In many cases productivity from loaned investment is inadequate that borrower become incapable in repaying loan.

Irregularity in providing loan

Usually banks are responsible to provide loan to those who are eligible for the loan. But in reality, small investors do not get the loan easily. They have to fulfill more terms & conditions. That irregularity in providing loan is not ethical, banks all rules and regulations are equal for every one or every parties.

Diversify the loan facility

Bank can provide long term loan, loans fir highway and high rise constructions of to provide agriculture sectors, which can also help the economy as well.

CONCLUSION

Over the last few decades there have taken place dramatic transformation in the area of Retail Banking unit. In the weak of these changes the financial experts have developed a whole range of new ideas and techniques on management exchange rates, investment of small business men or women and most of all management of credit risks. Banking sector of Bangladesh is passing though a tremendous reform under the economic deregulation and opening up the economy. Currently this sector is becoming extremely competitive with the arrival of multinational banks as well as technological infrastructure, effective with the arrival of management, higher performance level and utmost customer satisfaction. Again the advent of a new area of information technology has changed the ways banks handle their “Retail” related Business.

BRAC Bank Ltd undertakes and support retail business and management of interest rate in different way. But some improvement regarding interest rate minimization is necessary for handling the competition that arises from competitive financial market, as the Retail Banking Unit of the bank has an influent.

Glossary

A/C                                         Account

AD                                          Authorized Dealer

B/L                                          Bill of Lading

BB                                           Bangladesh Bank

CCI & RB                               Chief Controller of Retail Banking Unit

CFR                                        Cost & Retail

CIB                                         Credit Information Bureau

CIF                                          Cost Insurance & Freight

CAD                                        Cash against Document

DA                                           Document against Acceptance

TT                                           Telegraphic Transfer

FOB                                        Free On Board

TIN                                         Tax Identification Number

TC                                           Terms and Conditions

PI                                            Personal Information

EP                                           Employment Details

FI                                            Financial Information

PNWS                         Personal Net Worth Statement

BAD                                       Bank Account Details

D&S                                        Declaration and Signature

LC                                           Letter of Continuation

MD                                         Margin Deposit

ILA                                         Irrevocable Letter of Authority

LH                                           Letter of Hypothecation

SC                                           Schedule

LU                                           Letter of Undertaking

CFAS                                      Credit Facility Approval Sheet

Bibliography

1. Annual Report of BRAC Bank Limited 2006 to 2007
2. Prospectus of  BRAC Bank Limited published at the time of IPO
3. Several Booklets From BRAC Bank
4. Credit Operational Manual of  BRAC Bank Limited
5. Operational Guidelines for Retail Banking
6. BRAC Bank Web Site: www.bracbank.com
7. Reading Materials Published by BRAC Bank Training Institute.