Training & development practices in banking sector ens. Introduction ‘The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word ‘Bank’ was probably derived from the word ‘bench’ as during ancient time Jews used to do money -lending business sitting on long benches, First modem banking was introduced in 1668 in Stock Holm as ‘Svingss Pis Bank' which opened up a new era of banking activities throughout the Furopean Mainland, In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabulitvallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas’ Train ah ! NUMBER AND TYPES OF BANKS ‘The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, 4 are Nationalized Commercial Banks, 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions. ‘The trsining and development eyele bq Sonali Bank is the largest among Nationalized Commercial Bank the while Pubali is leading in the private ones, Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Kannasansthan Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) inthe rural areas. Of the branches Nationalized Commercial Banks, hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. Sonali Bank Limited Sonali Bank Limited Overview of the Bank Sonali Bank Limited, the largest & leading commercial bank of the country, came into being in 1972 immediately after the emergence of Bangladesh as an independent state, A fully state-owned enterprise, the bank has been discharging its nation- building responsibilities by undertaking goverment entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank Limited singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself Sonali Bank Limited is governed by a Board of Directors consisting of 9nine) members headed by a Chairman. The Bank is headed by the Chief Executive Officer & Managing Director, who is a well-known Banker and a reputed professional. The head office of the bank along with its corporate structure is located at Motijheel, Dhaka, and the main commercial center of the capital. Rupali Bank: Rupali Bank Limited Rupali Bank is a commercial bank in Bangladesh. It was established as a nationalized bank in 1972 under the Bangladesh Banks Nationalization Order, through the amalgamation of the branches of Muslim Commercial Bank, Australasia Bank and Standard Bank that were operating in East Pakistan, following the 1971 Bangladesh Liberation War. The bank was denationalized in 1986, and reorganized as a limited company, with the Government of Bangladesh holding 51% shares. However, after the year 2000, the Government divested of its shares, and the privatization of the bank was complete, Rupali Bank Ltd, was constituted with the merger of 3 (three) erstwhile commercial banks ie. Muslim Commercial Bank Ltd., Australasia Bank Ltd. and Standard Bank Ltd. operated in the then Pakistan on March 26, 1972 under the Bangladesh Banks (Nationalization) Order 1972 (P.O. No. 26 of 1972), with all their assets, benefits, rights, powers, authorities, privileges, liabilities, borrowings and obligations. Rupali Bank worked as @ nationalized commercial bank till13, August. Rupali Bank Ltd, emerged as the largest Public Limited Banking Company of the country on December 14, 1986Denationalized bank Pubali Bank Pubali Bank Limited was initially established in the Banking scenario of the then East Pakistan as Eastem Mercantile Bank Limited at the initiative of some Bangalee entrepreneurs in the year 1959 under Bank Companies Act 1913. After independence of Bangladesh in 1972 this Bank was nationalized as per policy of the Government and renamed as Pubali Bank. Subsequently due to changed circumstances this Bank was denationalized in the year 1983 as a private bank and renamed as Pubali Bank Limited. The Goverment of the People's Republic of Bangladesh handed over all assets and liabilities of Pubali Bank to Pubali Bank Limited, Since then Pubali Bank Limited has been rendering all sorts of Commercial Banking services as the largest bank in private sector through its branch network all over the country, Pubali Bank Limited the successor of the former Eastem Mercantile Bank Limited incorporated in 1959 under the cowpavies acr 1913. Eastem Mercantile Bank Ltd was nationalized under Bangladesh Bank's (Nationalization) Order 1972 and was renamed as Pubali Bank. It was denationalized on 30 June 1983 under the Bangladesh Bank's (Nationalization) Amendment Ordinance 1983. In 1972, the authorized and paid up capital of Pubali Bank was TK 50 million and TK 10 million respectively. At the time of denationalization in 1983, the paid up capital of the bank was TK 20 million. In 1984, the authorized and paid up capital of the bank was enhanced to TK 160 million divided into 1.6 million ordinary shares of TK 100 each. In the same year, the bank created a reserve fund of ‘TK 2.30 million, Following the expansion of business activities along with the increases in the volume of assets and liabilities, authorized capital was raised to TK 5,000 million at the end of the business year 1999, while the paid up capital remained unchanged, Reserve funds of the bank were enhanced to TK 644.2 million in December 1999. The bank is listed with both Dhaka and Chittagong Stock Exchanges. (@T2Ttrhe functions of the bank include deposit mobilization, financing productive activities, conducting foreign exchange business and providing various types of banking services to the customers. Total deposits of the bank on 31 December 1972 were TK. 767.98 million, which rose to TK 5,409.11 million in December 1984. Total loans and advances of the bank during these two reference periods were TK 471.64 million and TK 4,333.46 million respectively. Total liabilities (assets) of bank were valued at TK 7,233.64 million on 31 December 1984, Compared to these, the value of total deposits, total loans and advances, and total liabilities (assets) on 31 December 2000 was TK 29,590.1 million, TK 21,572.2 million and TK 33,436.9 million respectively. The deposits comprised savings deposits TK. 11,608.6 million, fixed deposits Tk 5,557.3 million, current deposits TK 3,933.1 million, and other deposits TK 8491.1 million Interest rate offered by the bank varied between 6.5% to 9%. The landings were mostly in Jute, textile, readymade garments and other large, medium and small scale industries, transport, housing, small loans, rural and agricultural credit, micro credit, credit to trade and commerce and export-import financing. Rates of interest charged on its loans and advances varied between 13% and 16% The bank has huge non-performing loans and the classified loans amounted to TK 7,601.5 million (35.24% of total) on 31 December 2000. In 2000, thebank financed 298 projects in large, medium and small-scale industries. In addition to loans and advances, the bank lent TK 230 million in the call money market and borrowed TK 309 ‘million from the inter-bank call money market in 2000. Foreign exchange business handled by the bank in 2000 amounted to TK 15,930 million which comprised export servicing TK 6,100 million, import financing TK 8,270 million, and remittance services TK 1,560 million. The bank has comespondent relationships with 554 banks all over the world, Investments of the bank in 1999 stood at TK 3,318 million in government securities, income tax bond, TeeAsuey eit, loans to govemment, national investment bond, bridge financing, shares and debentures of companies and national patze ons, The bank eared net profits after taxes but before adjusting provision requirements in all years from 1984 to 2000 except 1990 and 1991. ‘The management of the bank is vested in a 14-member board of directors with the managing director as its chief executive. In 2001, the bank had 350 branches (196 urban and 154 rural) and the total number of its employees was 4,882 Private bank in Bangladesh First generation bank in Bangladesh National Bank Limited: National Bank Limit eC A Bank for Performance with Potential National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with, the passage of time after facing many stress and strain, The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time, ‘The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country, National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors, We want to serve each one promptly and with a sense of dedication and dignity. At present, NBL has been carrying on business through its 106 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 37 overseas Exchange Companies located in 13 countries. NBL. was the first domestic bank to establish agency arrangement with the world famous Westem. Union in order to facilitate quick and safe remittance of the valuable foreign exchangeseamed by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage eamers and the foreign investors better than before. Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account, In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh. A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies, National Credit and Commerce Bank Ltd Nia ueg NGC Bank Limited National Credit and Commerce 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 1985. 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 unto 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a full fledged private commercial Bank in 1993 with paid up capital of TK. 39.00 corer Since its inception NCC 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 Foreign exchange business, Its various deposit & credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business Second generation bank in Bangladesh 8 8 DHAKA2 ANI i Dhaka Bank Limited Bangladesh economy has been experiencing a rapid growth since the ‘90s. Industrial and agricultural development, intemational trade, inflow of expatriate Bangladeshi workers’ remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization andlifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to canalize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Dhaka Bank Limited in the year 1995, ‘The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of TK. 1,000 million and paid up capital of TK. 100 million. The paid up capital of the Bank stood at ‘TK 1,934,252,875 as on June 30, 2008. The total equity (capital and reserves) of the Bank as on June 30, 2008 stood at TK 3,424,609,016, The Bank has 44 branches, 2 SME Service Centers, 1 Business Center, 2 Offshore Banking Units across the country and a wide network of comespondents all over the world, The Bank has plans to open more branches in the current fiscal year to expand the network, ‘The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest technology and a team of highly motivated officers and staff In our effort to provide Excellence in banking services, the Bank has launched Online Banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank's clientele through Online and Home banking solutions. Dhaka Bank Ltd. is the preferred choice in banking for friendly and personalized services, cutting edge technology. tailored solutions for business needs, global reach in trade and commerce and high yield on investments Southeast Bank Ltd R Southeast Bank Limited is a scheduled commercial bank in the private sector established under the ambit of Bank Company Act, 1991 and incorporated as a Public Limited Company under Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations on May 25, 1995. During this short span of time the Bank has succeeded in positioning itself as a progressive and dynamic financial institution in the country, The bank has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top-rated corporate borrowers, for its forward - looking business outlook and innovative financial solutions. Thus within this very short period of time it has been able to create an image and eam significant reputation in the country's banking sector as a Bank with Vision. Presently, it has 46 branches Southeast Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank, within a period of 14 years of its operation, achieved remarkable success fully meeting capital adequacy requirement of Bangladesh BankAs evident from the financial statements for the last 10 years, it has been growing rapiclly as one of the leaders of the new generation banks in the private sector in term of business and profitability. Third generation bank in Bangladesh Trust Bank Limited @ ‘Trust Bank Limited is one of the leading private commercial bank having a spread network of 39 branches across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2008 The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country. With a wide range of modern corporate and consumer financial products Trust Bank has been operating in Bangladesh since 1999 and has achieved public confidence as a sound and stable bank. In 2001, the bank introduced automated branch banking system to increase efficiency and improve customer service. In the year 2005, the bank moved one step further and introduced ATM services for its customers, Since bank's business volume increased over the years and the demands of the customers enlarged in manifold, our technology has been upgraded to manage the growth of the bank and meet the demands of our customers. In January 2007, Trust Bank successfully launched Online Banking Services which facilitate Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Intemnet Banking to all customers, Customers can now deposit or withdraw money from any Branch of Trust Bank nationwide without needing to open multiple accounts in multiple Branches, ‘Via Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve 24x7 hours Account information such as account balance checkup through mini-statements and cash withdrawals, Trust Bank is about to introduce Visa Credit Cards to serve it's existing and potential valued customers. Credits cards can now be used at shops & restaurants all around Bangladesh and even intemationally. ‘Trust Bank is a customer oriented financial institution, It remains dedicated to meet up with the ever growing expectations of the customer because at Trust Bank, customer is always at the centerForeign bank (SIHSBC Bank Bangladesh HSBC HSBC Bangladesh Pvt. Ltd started operations in 1996, It is part of the HSBC Group, The bank primarily focuses on urban areas have branches in most areas of the capital city of Dhaka, it also has branches in the cities of Chittagong and Sylhet. The bank also has a good number of ATM booths in the cities present; it also has booths in most five star hotels, HSBC Bangladesh is rated ‘AAA’ in the Long-term and ST-1 rating in the Short-term, which are the highest level of ratings for any bank or financial institution in Bangladesh. HSBC Bangladesh offers a comprehensive range of financial services such as commercial banking, consumer banking, payments and cash management, trade services, treasury, and custody and clearing, The bank also offers offshore banking in the Export Processing Zones, this is only limited to investors in the EPZs. A special service called NRB Services is also available for non resident Bangladeshis; this service allows consumers to maintain accounts in US Dollars, Pound Sterling and Euros. People using this service can freely remit money from Bangladesh to any part of the world and can access their money from any HSBC booth around the world Specialized bank Grameen Bank Banking for the Poor GRAMEEN BANK ‘The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation The action research demonstrated its strength in Jobra (@ village adjacent to Chittagong University) and some of the neighboring villages during 1976-1979. With the sponsorship of the central bank of the country and support of the nationalized commercial banks, the projectwas extended to Tangail district (a district north of Dhaka, the capital city of Bangladesh) in 1979. With the success in Tangail, the project was extended to several other districts in the country. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank is owned by the rural poor whom it, serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government, Grameen Bank at a Glance Nobel Peace Prize, 2006 October 13, 2006 was the happiest day for Bangladesh, It was a great moment for the whole nation, Announcement came on that day that Grameen Bank and I received the Nobel Peace Prize, 2006. It was a sudden explosion of pride and joy for every Bangladeshi, All Bangladeshi’s felt as if each of them received the Nobel Peace Prize. We were happy that the world has given recognition through this prize, that poverty is a threat to peace. Grameen Bank, and the concept and methodology of micro-credit that it has elaborated through its 30 years of work, have contributed to enhancing the chances of peace by reducing poverty. Bangladesh is happy that it could contribute to the world a concept and an institution which can help bring peace to the world Owned by the Poor Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976, In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 95 per cent of the total equity of the bank. Remaining 5 per cent is owned by the government. Branches Grameen Bank has 2,556 branches. It works in 84,388 villages. Total staff is 23,445 Over Tk 451 billion disbursed ‘Total amount of loan disbursed by Grameen Bank, since inception, is Tk 451.58 billion (US $ 8.07 billion). Out of this, Tk 401.60 billion (US $ 7.16 billion) has been repaid. Current amount of outstanding loans stands at TK 49.97 billion (US $ 724.04 million). During the past 12 months (from June’08 to May'09) Grameen Bank disbursed Tk. 70.34 billion (US 1023.33 million). Monthly average loan disbursement over the past 12 month was Tk 5.86 billion (US $ 85.28million) Projected disbursement. for year 2009 is Tk 75.00 billion (US $1091 million), i.e. monthly disbursement of Tk 6.25 billion (US $ 90.92 million). End of the year outstanding loan is projected to be at Tk. 55.00 billion (US $ 800 million). 100 per cent Loans Financed From Bank’s Deposits Grameen Bank finances 100 per cent of its outstanding loan from its deposits. Over 54 per cent of its deposits come from bank's own borrowers. Deposits amount to 136 per cent of the outstanding loans. If we combine both deposits and own resources it becomes 149 per cent of loans outstandingEarns Profit Ever since Grameen Bank came into being, it has made profit every year except in 1983, 1991, and 1992. It has published its audited balance-sheet every year, audited by two internationally reputed audit firms of the country. Low Interest Rates Govemment of Bangladesh has fixed interest rate for government-run microcredit programmes at 11 per cent at flat rate. It amounts to about 22 per cent at declining basis. Grameen Bank's interest rate is lower than government rate There are four interest rates for loans from Grameen Bank: 20% for income generating loans, 8% for housing loans, 5% for student Government of Bangladesh has fixed interest rate for government-run microcredit programmes at 11 per cent at flat rate, It amounts to about 22 per cent at declining basis. Grameen Bank's interest rate is lower than government rate, There are four interest rates for loans from Grameen Bank: 20% for income generating loans, 8% for housing loans, 5% for student. Evolution of human Resource Management ‘Human Resource Management involves all management decisions and practices that directly affect of influence the people, or human resources who work for the organization. Human Resource Management has become one of the crucial parts of organization because an organization's employees enable an organization to achieve it’s goal human resource is a primary resource without which other resources, physical and financial, can't be put into use. So, the management of Human Resources plays a critical role to an organization's success, Definition of Human Resource Management Human Resource Management is a process and organizations together so that the goals of each are met. It is that part of the management process which is concemed with the management of human resources is an organization. It tries to secure the best form people by winning their whole hearted co-operation. In short, it may be fined as the art of procuring, developing and maintaining competent work force to achieve the goals of an organization is an effective and efficient manner. ‘Human Resource/personnel management may be defined as the art of procuring, developing and maintaining competent workforce to achieve organizational goals efficiently. According to Flippo,” Human Resource/ personal Management is the planning, organizing, directing and controlling of the procurement, development, compensation, itergration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished,” According to E.F.L. Breach,” Personnel Management is the part of management process which is primarily concemed with the human constituents of an organization,In the words of Richard Calhoon,” Personnel management involves the task of handing the human problems of an organization and is devoted to acquiring, developing, utilizing and ‘maintaining an efficient work-force.” According to R.G. Gokhle,” Personnel Management is the specialized intelligent handing of the human factor by a separate department which could devote its full time for research along, the line of improvement is industrial relation: In other words, it can be said that personal Management is concemed with people at work and their relationships with each other. It may be defined as a set of programmers, functions and activities designed to maximize both personal and organizational goals. Functions of Human Resource Management Human Resource Management consists of the following functions each of which includes multiple equally important activities which collectively contribute to the organization’s success: - Human Resource Planning Human resource Planning, HRP, is a planning process by which an organization can move from its current manpower position to its desired manpower position. Through manpower planning, an organization strives to have the right number and right kinds of people at the right time. More appropriately, man power planning is defined as a strategy for acquisition, utilization, improvement, and retention of human resources. + Acquiring Human Resources Part of human resource planning that refers to staffing activities that include recruiting applicants, screening, selecting the most qualified candidates, and filling some positions through transfer and promotions. - Training and development Training and development is an important activity of human resource management Training can be defined as the systematized tailor made program to suit the needs of particular organization for developing certain attitudes, action, skills, and abilities in ‘employees irrespective of their functional levels. ~ performance management Performance management is an ongoing process that identifies organizational vision ‘and objectives, installs organizational and individual performance standards, and ensures these standards using system and procedures that are well-integrated with ‘organizational culture and practices. = compensation management (Compensation management, the most critical and important division of human resource management, mainly deals with designing and administering a compensation systemthat rewards employees fairly while stimulating them to provide goods and services that satisfy customers demands and permitting the organizational to operate profitable and competently. Organizational success heavily depends on efficiency of compensation system. The first and foremost part of the compensation management is the designing of base pay structure for an organizational employee. Value of human Resource Management ‘As we know, the term ‘human resource management’ underlines a belief that people really make the difference, only people among other resources have the capacity to generate value. However, the human resource management is considered as the ‘Cinderella’ in the organization as its importance has not been discovered by the senior managers, in addition, it has to share responsibilities with line managers, sometimes it takes more work than it is expected, Actions should be taken to help the Cinderella find her glass shoes: Human resource management (HRM), as defined by Bratton, J. & Gold, J. (2003), is “A strategic approach to managing employment relations which emphasizes that leveraging people's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmers and practices. According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization's human resources in a more strategic level. To describe what the HRM does in the organization, Ulrich, D. & Brockle bank, W. (2005) have outlined some of the HRM roles such as employee advocate, human capital developer, functional expert, strategie partner and HR leader ete. It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business — from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone Model of Human Resource Management In recent years there has been relative agreement among HRM specialists as to what constitutes the field of HRM. The model that provided the focus was developed by the American Society for training and Development (ASTD). In this study identified nine human resources areas Personal Research and Information -Training and Development systems -Organization and Development -Compensation/Benefits -Organization/job Design Employee Assistance -Human resources planning -Union/Labor Relations Selection and staffing The outputs of this model are -Quality of work life Quality of work life is a multifaceted concept. The premise of quality of work life is having a work environment where an employee's activities become more important. This means implementing procedures or policies that makes the work less routine and more rewarding for