Performance Evaluation of a Private Bank

pic pic pic pic pic An Assignment On Performance rating of a Private desire IFIC swan as a privy beach in the mysterious sector of Bangladesh. Prep argond For Narzia Florin Lecturer, Dept. of rail line Administration Prep bed By Saleh Ahmed BBA 02406160 24th GI Dept. of Business Administration Stamford University Bangladesh. Submission Date fifteenth May 2006 Letter of Transmittal Dated May 15, 2006 Narzia Florin Lecturer, Dept. of Business Administration Subject Submission of subject on execution military rating of a buck private commercial depone. Dear Madam,It has been a great pas clipping to submit the report on performance evaluation of a private commercial argot. You are aware that I collected discipline on a private commercial bank. I choose IFIC Bank for the report part. I am fortunate enough that I got e really last(predicate) those information requirement for the assignment purpose. I believe that this assignment has given me a great experience to me and it has enriched both(prenominal) my knowl move on and experience. I seek my beat out to prove my skills while preparing this report. I cordi ally seek your signifier advice or suggestion regarding my mistake which forget help me in my practical and theoretical industrial plant in the days to come.Sincerely yours, Saleh Ahmed BBA 02406160 24th GI elude of Contents ? Executive Summary. ? Profile of IFIC Bank. ? BANKS MISSION Quest for integrity. ? The bank in a sketch. ? possession Structure. ? financial Position. ? Product & Services. ? Human Resources Development. ? localises of postulate synopsiss. ? Conclusion. Executive Summary In this report on the Performance paygrade of a private bank as IFIC bank, I collect the necessary information from its web site, catalog, bossier and individualally by information collection.I tack together that these private companies are very competitive and want to hold the long market of Bangladesh at both cost. So they provide varia nt types of proceeds and range. I excessively found that the companies counterattack their competitors by their offers. any(prenominal) gives spicy or low interest rate, bracing facilities etc Every follow has their let strategy to capture the market. In my report I tested to accept most of IFIC banks proceeds, go and facilities. Though I devote some limitations I tried my best to show the Performance Evaluation of IFIC bank as a private bank. BANKS MISSION Quest for ExcellenceOur Mission is to provide service of process to our clients with the help of a skilled and consecrated workforce whose creative talents, innovative actions and competitive edge make our beat unique in giving quality service to all institutions and individuals that we heraldic bearing for. We are committed to the welfare and economic prosperity of the people and the community, for we twit from them our inspiration and drive for onward progress to prosperity. We want to be the drawing card among banks in Bangladesh and make our indelible mark as an active ally in regional banking operating beyond the national boundary.In an intensely competitive and complex financial and production line environment, we particularly focus on growth and profitability of all concerned. THE BANK IN A cogitation International finance Investment and Commerce (IFIC) Bank Limited started banking trading operations on June 24, 1983. Prior to that it was set up in 1976 as a joint venture finance comp some(prenominal) at the instance of the political science of the Peoples Republic of Bangladesh. Government then held 49 share shares while the sponsors and habitual public held the rest.The objectives of the finance troupe were to establish joint venture Banks Finance Companies and affiliates abroad and to carry out normal functions of a finance company at home. When the Government decided to open up banking in the private sector in 1983, the above finance company was converted into a full-fledged commercial Bank. Along with this, the Government also allowed four opposite commercial Banks in the private sector. Subsequently, the Government denationalized two Banks, which were then in full Government- beared.While in all these Banks Government held nominal 5 percent get along shares, an exception was made in the case of this Bank. It retained 40 percent shares of the Bank. The decision by the Government to retain 40 percent shares in IFIC Bank was in pursuance of the original objectives, namely, promotion of joint community of Government and private sponsors to establish joint venture Banks, financial companies, branches and affiliates abroad. Ownership Structure BOARD OF DIRECTORS Board of theatre directors of the Bank is a unique compounding of both private and Government sector experience.Currently it consists of Ten film directors. Of them louvre represent the sponsors and general public and four elder officials in the stray and status of joint secretary/Addition al Secretary represent the Government. Managing conductor 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. asynchronous transfer mode Ataur Rahman Director 08 Dr. Chowdhury Saleh Ahmed Director 09 Mr. Md. Mokhles ur Rahman Director 10 Mr.Mashiur Rahman Managing Director Financial Position great & RESERVES The bank started with an authorized groovy of Tk. degree centigrade. 00 million in 1983. compensable-up expectant was then Tk. 71. 50 million merely. Over the last cardinal unmatchable old age, the authorized & paid-up capital has increased substantially. Authorized capital was Tk. 500. 00 million and the paid-up capital stood at Tk. 406. 39 million as on December 31, 2004. The Bank has built up a fond reserve base over the geezerhood. In last 20 mavin years its reserves and surplus progress to increased signifi go offtly.This consistent insurance policy of building up reserves has enabled the bank to maintain a founder capital adequacy ratio as compared to others. With the active support and steerage from the Government, the bank has been showing a steady and improved performance. In its twenty One years of operations, the bank has make the status of a star bank in terms of both business and goodwill. Starting with a modest bushel of only Tk. 863. 40 million in 1983 the bank has closed its business with Tk. 20, 774. 49 million of deposit as on December 31, 2004.The annual growth rate has mostly been higher compared to both banking sector growth and individual growth rates achieved by others. As against a profit of Tk. 21. 94 million in 1984, the bank earned a record profit of Tk. 700. 25 mill ion for the year terminate on December 31, 2004. PRODUCT & SERVICES Presently 5 (five) products/ work set about already been launched in the market A. Pension saving project (PSS) B. periodic Income shunning (MIS) C. Tele Banking / Tele Link D. Death risk Benefit proposal (DRBS) E. Con tallyer faith Scheme (CCS) A. Pension Saving Scheme (PSS) 1. Name of the Scheme Pension Saving Scheme . bringing Points 62 secernatees 3. highlight of the product Duration of the bank note 5 (five) Years & 10 (ten) Years periodic Installments Tk. 500 or Tk. 1000 or Tk. 2000 pay after matureness PAYMENT AFTER MATURITY 5 old age 10 YEARS INSTALLMENT WITHOUT subvention 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 accounting organisation A person of 18 years of age and above having a soun d encephalon will be qualified to open an answer for in his/her own name. Bonus PaymentIf the floor holder, from commencement to adulthood of term, pays all the periodic installments in time (i. e. indoors 10th day of each month) and never defaults in paying monthly installments, the banknote holder will deliver extra bonus pay equivalent to 3 (three) times of monthly installment for 5 years term and 6 (Six) times of monthly installment for 10 years term. Income Tax Rebate Under this Scheme, income tax rebate will be available on the total add up payable i. e. after maturity of deposited amount such amount will also be income tax free.Monthly installments to PSS will also qualify for showing as investments (like farsighted fund) in yearly Income Tax Return. Payment of Pension One can receive the entire deposited amount with interest at a time or receive a pension on monthly derriere at a desirable amount of monthly installments. B . Monthly Income Scheme (MIS) 1. Name of the Scheme Monthly Income Scheme. 2. Delivery Points 62 Branches. 3. Highlight of the product 4. Duration of the Account 5 Years (Deposited principal amount will be returned on maturity). 6. Amount to be Deposited Tk. 50000/- and its multiple. 7.Payment after MaturityTk. 450/- and its multiple. Procedures for paying monthly income The payment of monthly income will start from the subsequent month after a comport negligible gap of 1 ( champion) month from the date of deposit. If an account is undefendable on 7th of any month, monthly income will be paid on 7th of the subsequent month. The account holder will receive monthly income in any SB/CD account of equal name maintained with the branch. In case, the account holder does not have any SB/CD account with the Branch, he/she/they will have to open a SB/CD account for receiving the monthly income.The borderline balance requirement will be waived for these types of accounts for a new guest. However, a minimum initial deposit o f Tk. 500/- will have to be deposited. This procedure will eliminate the hassle of coming to the Bank Branch for taking interest every month. Eligibility for Monthly Income Scheme A person of 18 years of age and above having a sound mind will be eligible to open an account in his/her own name. A person can open more than than bingle account in his/her/their name in the same Branch or any Branch of the Bank. C. Tele Link/Tele Banking 1. Name 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 fast convenient and golden to drop service that will complement ones lifestyle and keep one in complete control of his banking. One can retrieve all the Telelink services at any time, day or night, from anywhere. It is far more convenient than traditional banking. Telelink is really simple to use. One can middling dial our phone number from anywhere and an automated computerized v oice result will guide him step by steps through his achievements. ConfidentialityA customer is given a 6 digit Registration come up when he applies for Telelink that will ensure total confidentiality of his account information. When the customer chooses to secure specific information about his account, he will have to use his Registration Number and the confidential Personal Identification Number (PIN) by pressing the number keys on his phone. Banking Services Supported by Telelink A. proceedings Relating to Transfer of funds from one account to another B. Inquiries relating to account balances transaction details exchange rates interest rate information products and services remittancesC. Requests for balance certificates account statement 7-days withdrawal notice on accounts stoppage books/pay order/drafts renewing or opening of fixed deposits supporter for opening other accounts In addition, the service can also down with lost cheque books and credit cards, c hange of address and stopping of payment. Fees We are not charging any fees for this technical service but the facility has been offered to Saving Bank customers with a minimum balance of Tk. 50,000/-, to Current Deposit Account customers and STD customers with a minimum balance of Tk. 100, 000/-. D. Death Risk Benefit Scheme (DRBS) . Name of the Scheme Death Risk Benefit Scheme. 2. Delivery Points 62 Branches. 3. Basic Features of Scheme IFIC Banks Death Risk Benefit Scheme offers its savings Bank Account holders interest on savings, a lump sum amount and some peace of mind three in one benefits at no extra cost Benefits of Scheme Death Risk benefits in lump sum amount to nominee(s)/heir(s) on the finale of an account holder. Eligibility Criteria Account moldiness be maintained for a period of minimum yearly before the death of the account holder. At the time of death, the customer must have been within the age group of 18 to 50 years.The account must have been opened with a mini mum deposit of Tk. 5000 in case of new accounts. (Since 1-8-97). Average balance of Tk. 10,000/- minimum must be maintained within one-year period prior to the death of the Account Holder. Extent of Benefit 50% of the average balances of the account for one-year period prior to the death of the account holder or Tk. 100,000 whichever is lower. Account balance exceeding Tk. 10, 00,000/- will not be taken into stipulation while calculating average balance for one year for the purpose of Death Risk Benefit. E. Consumer Credit Scheme (CCS) 1.Name of the Scheme Consumer Credit Scheme. 2. Delivery Points 62 Branches. 3. Highlight of the product Main Features Particulars Selection Criteria / Who tin A Self employed person of fixed income $ a affirm or permanent service holder. apply Products Eligible for Finance Vehicles, interior(prenominal) Appliance, maculation Equipment, Entertainment, Medical Expenses, Intangibles, etc. Limit Range Tk. 15,000 to Tk. 7,00,000 Repayment By 1 2, 24, 36 or 48 equated monthly installments (EMI) depending on the loan amount. sideline Rate / Fees Interest 16. 00% P. A. ithoutany tangible security and 14. 50% P. A. where the loan is 100% secured with 20% margin against lien of FDR, MIS, PSS, savings Certificates issued from any Bank & Financial Institution. Service Charge For 1 and 2 Years term 2% of the impart amount (minimum Tk. 00/-) For 3 Years term 3% of the Loan amount For 4 Years term 4% of the Loan amount. mess Payment / Equity Minimum 20% of the invoice value of the Consumer Products. share For Vehicles 30% to 40% in Cash / Financial instruments.. Q-cash Q-cash is a new service provided by the IFIC Bank. In this quick cash service system there consumer can withdraw money easily in any time in exchange of a little yearly fee.This kind of services is very helpful for their current consumers and for their new consumers of their services. This kind of services is raising the living standard of people. For implementing this kind of new service we are grateful to IFIC Bank. HUMAN RESOURCES DEVELOPMENT Human Resources Development (HRD) activities aim at fulfilling the banks Mission. One of our four major missions is to Provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in iving quality service to all institutions and individuals that we care for. Skilled and dedicated workforce with creative talents, innovative actions are not always readily available. Appreciating the scarcity of such manpower, the bank from the very beginning laid importance to HRD that conceptually includes activities like pre-recruitment drill, recruitment, induction, training in the Academy, job rotation, placement & posting, reward and promotion. All these activities are planned by the bank in an integrated way aiming at manpower with unavoidable amount of technical, managerial, human and conceptual skills.Management of IFIC Bank not only appreciates the guide of skills required for day to day banking but also realizes the need for skills to meet the global & national financial and economic environments that are changing fast. Meeting the needs of new skills arising out of Financial Sector Reforms curriculum (FSRP) is also a major concern of the management. The bank, therefore, set up a ingredient namely HRD Division under a separate meeting called Services Group-I. The Academy of the bank works under this group.The other Division, which works under the Services Group-I, is Planning, Research & Statistics Division. Current News IFIC BANK get together SHARED ATM NETWORK IFIC Bank Ltd. and ITC Ltd. have signed a shared ATM network participation accord. . The Signing ceremony was held in presence of Mr. Ataul Haq, Managing Director of IFIC Bank Limited and Mr. Kutubuddin Ahmed, Chairman of ITCL and chair of BGMEA. Executives and senior officials of IFIC Bank were also present on the occasion. In the process, the bank has joined a group local bank for introduction of shared ATM network.Automated teller Machine (ATM) with electronic device located at the bank branches or other convenient public locations extends 24 hours access to cash and other banking facilities to the customers without requiring to enter the branch or to wait in queues for cash withdrawal. This will establish the banks commitment for valued customers to bring a new era in banking services. Under this new facility, IFIC Bank will install few ATMs at its branch premises in capital of Bangladesh city. Similarly, few more units of off site ATMs will also be installed in some prominent public places in the city by the syndicate partners. assembly OPERATION-I Operations-I, a group segment of Head Office operation of the Bank mainly handles universal Advance/ Credit Portfolio, intent finance excluding Overseas Operations of the Bank and Lease financial backing. The Group is headed by Senior Executives having commendable professional knowledge and experience supported by a talent pool of MBAs, Engineers, Economists, and Statisticians etc. with the blending of credit experience. GROUP STRUCTURE A. Name of Group Executive/ In-Charge Mr. Md. Ziaul Bari, Executive Vice President B.Functional Structure The Group Comprises of 3 Divisions as under i) General Credit Division ii) Project Finance Division iii) Lease Financing Division C. Area of Operation i) General Credit Division a) okay Department This department mainly handles Credit Portfolio of the Bank colligate to working Capital and Trade Finance. Proposals of such nature are processed/appraised and given up of by this department. The department is manned by a group of professionals from several(prenominal) discipline with commendable banking experience as well as icon in modern concept and technology. ) Credit Administration Department The function of this department is to monitor credit portfolio of the Bank through physical charge of various periodical returns, Audit/Inspection Report etc. with a view to maintaining a healthy asset base of the Bank. c) Credit entropy & Returns Department This department deals in preparation of different periodical returns related to credit portfolio of the Bank for management information as well as for submission of information/data to Regulatory Body and various peremptory agencies.The department also centrally handles all jobs relating to Loan Classification of the Bank. d) assistant Functions The Group also handles various Loan Schemes for the employees of the Bank. ii) Project Finance Division Project Finance Division is a shared resource focalise of the Bank which provides back office support to the branches the marketing outlets of the Bank in their endeavor to meet the credit needs of the incarnate clients.The Division helps the corporate clients in their decision making for undertaking venture project or BMRE of th e existing projects. It also assist them to structure their long term and shortstop term finance and to raise fund from own source of the Bank or through syndication with other Banks. In case of difficult business situation and unexpected low turnover vis-a-vis poor performance of the clients, the Division offers customized solution through business and financial restructuring.The Division also provides counseling to the corporate clients for minimizing their business risks and optimizing growth in the context of fast globalization. The Division so far financed 250 projects (New and BMRE) since 1996, major concentration being in textile sector both export oriented and backward linkage units. Other mentionable sectors are Steel and Engineering, Cement, Real Estate, Consumer Products, Printing and Packaging, Hotels, Hospitals, Cold repositing etc. iii) Lease Finance DivisionTo assist bona-fide entrepreneurs acquire capital machinery and equipment increasing / up-grading productiv e capacity without trying up equity and to tally to the industrial development of Bangladesh IFIC Bank Limited has introduced Lease Finance. For more satisfy contact the Branches. RATES OF DEPOSIT SCHEMES Deposit Schemes Deposit Rates Savings (SB) 5. 0% Special Term Deposit (STD) 4. 00% Fixed Deposit Rate of Interest Three Months 6. 75% 7. 50% Six Months 7. 00% 7. 5% One Year & above 7. 25% 8. 00% * Figure in LAC Taka Conclusion To fancy up this report on Performance Evaluation of a private bank I collect information of many an(prenominal) banks and finally select The IFIC bank to prepare this Performance Evaluation Report. For collecting information regarding different bank, I found that these private companies are very competitive and want to capture the vast market of Bangladesh at any cost.So they provide various types of product and services. I also found that the companies counterattack their competitors by their offers. Some gives high or low interest ra te, new facilities etc Every company has their own strategy to capture the market. In my report I tried to include most of IFIC banks product, services and facilities. I tried to focus all their branches. In my opinion the bank provide many attractive facility to their customer but it should provide more service and product to its customer and must easy on its customer on there services.