Executive Summary:

To make this report we have meet some officers of that bank, operation manager of Dhanmondi
Branch, MS Ayesha Siddiqua, HR executive MD Tanvirur Razzak from head office and an officer
from general MS Atia Rahaman banking department. We have asked them some question we have
prepared before and we got to know about many things from them and got a clear idea of how IFIC
Bank execute their strategic plan to reach their goal. From the SWOT Analysis we have identified
about the bank’s strength weakness, opportunity and threat. Planning is very important for the
success of an organization. It tells an organization what kind action needs to take to achieve the
organizational goal. IFIC Bank Ltd the strategic planning is done by the director, board members,
managing directors, CEO and other top-level executives. Initially the decision making is centralized
because top management makes decision. However, they collectively take feedback from
employees.

The Historical Background of IFIC Bank LTD.

International Finance Investment and Commerce Bank Limited (IFIC Bank Limited.) is a banking
company assimilated in the People’s Republic of Bangladesh with limited liability. It was
established at the specimen of the Government in 1976. At the very first stage of its journey, the
company was a joint venture between the Government of Bangladesh and sponsors in the private
sector with the objective of working as a finance company within the country and configuring joint
venture banks/financial institutions aboard. When the Government authorized banks in the private
sector, IFIC was converted into a full-fledged commercial bank in 1983. The Government of the
People’s Republic of Bangladesh now holds 32.75% of the share capital of International Finance
Investment and Commerce Bank Limited (IFIC Bank). Directors and Sponsors having vast
experience in the field of trade and commerce and 11.31% of the share capital owned by them. The
remaining portion is in the clutch of the general public.

International Finance Investment and Commerce Bank Limited (IFIC Bank Limited.) is a first
generation Private Commercial Bank with unique combination of Private and Government sector
experience. Government of the People’s Republic of Bangladesh holds 32.75% of the share capital
of our bank and the Government equity is represented by 4 (four) senior government officials
ranked Additional Secretary/Joint Secretary in the Board as Director.

A total network of 138 Branches including 6 SME service Centers, functioning within the country
are under possession of IFIC Bank Limited. The joint venture operation is expanded in Pakistan and
Nepal. Besides, a joint venture exchange house has also established in Oman to facilitate remittance
by Bangladeshi expatriates working in Oman.

The world-renowned MISYS On-line Banking Solutions have already been implemented to all of
the branches. In addition, the bank has 22 authorized dealer branches (dealing foreign exchange
business) all over the country and most competitive BC selling rate for import finance are also
being offered by IFIC Bank Limited.

Their Vision is to be the preferred financial service provider through innovative, sustainable and
inclusive growth and deliver the best-in-class value to all stakeholders. And Mission 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 giving quality service to all
institutions and individuals.

Mission and Vision of IFIC Bank Limited:

The mission statement for IFIC Bank LTD. is to provide dedicated service to the clients and to be
committed to the welfare and economic prosperity of the people of the community so that the bank
may have the leadership position among the banks in Bangladesh to make an indelible mark as an
active partner in regional banking operating beyond the national boundary.

The vision statement of IFIC Bank LTD. to be the preferred financial service provider.

Goal of the Bank

The goal of the bank is to satisfy customer expectations through offering innovative financial
products & services and establish a strong presence to recognize shareholder’s expectations and
optimize their rewards through dedicated workforce.

a. Long Term Goal is to stay ahead from other competitors in terms of productivity and
profitability.
b. Short Term Goal is to attain the budgetary targets those has been fixed.

Decision makers of strategic plan

Strategic plan is very important for the success of a company. It is the direction of the organization
where it should go over a multiple-years period. The planning is about what the business will do,
how they will do it, how to be competitive in the market, how to satisfy the needs of customers
according to the goal of the organization. Generally, the CEO and the higher leadership team
prepares and develops and executes the strategic planning of the organization. In IFIC Bank the
strategic planning is done by the Directors, CEO, Managing director and top-level executive.
Besides, they take preview, suggestions and feedback of the department heads and even from the
other department level employees also. Different levels of employees in the organization invited to
take participation in the goal setting of the company. They try to find out is the strategy really
working or not and change and makes plans according to that.

Corporate and competitive strategy

Competitive strategy: It explains how a company is going to compete in the market. If an
organization wants to develop an effective competitive strategy, they need understand their
competitive advantage and work according to that. IFIC bank’s competitive strategy is it is one of
the oldest privet commercial banks of Bangladesh and its huge share of Bangladesh Govt and that
issue make the general people to trust this bank for investment more than other commercial bank.

Differentiation Strategy: IFIC wants to be unique in the market. That’s why they always try to
offer unique courses with unique features to be competitive advantage in the market. For adapting
differentiation strategy IFIC does the following things:

 Launched different types of products in the market to attracted the customer among them
IFIC Amar Account, Amar Bhobisshot and Amar Bari are the most attractive one in the
market which bought huge number of new customers for the banks.
 IFIC always try hard to create appositive brand image in the market.
 IFIC made a plan to make 1200 uposhakhas all over the country to serve the customer of
every corner of the country and to fulfill their motto to make maximum number of people of
the country as their customer.
 IFIC introduced Shohoj Account for the lower level our country people where anyone can
open a bank account with 10 TK so that lower class people can be introduced with the
banking system and they can make their life upgrade and easy.

Contact Person:

1. Ayesha Siddiqua
Designation: Operation Manager & BMLCO
IFIC Bank Ltd (Dhanmondi Branch)
Phone: 01711392665
Email: ayesha@ificbankbd.com
2. Atia Rahaman
Designation: Officer, Customer Relation
IFIC Bank Ltd (Dhanmondi Branch)
Phone: 01710925337
Email: atiya.rahaman@ificbankbd.com
3. Tanvirur Razzak
Designation: Officer, HR Department
IFIC Bank Ltd (Head Office)
Phone: 09666716252
Email: tanvirur.razzak@ificbankbd.com
SWOT Analysis:

A SWOT analysis is a business evaluation that takes account into four factors: the company's
Strengths, Weaknesses, Opportunities and Threats. All elements in a SWOT analysis can be
categorized into two groups based on their scale: Internal and External. The analysis is useful for a
corporation in a variety of situations, notably when deciding on a new goal. The business owners
can quickly predict whether their plan is realistic or not, whether they should make revisions, or
whether they should abandon the plan based on the information gathered.

Strengths Weaknesses
1. Established and reputed in the banking 1. Lack of motivation among the workers.
industry. 2. Heavy dependency on Head Office in
2. Tremendous growth in the profits and decision making.
deposits sector. 3. Lack of incentives for the employees
3. Friendly working environment. from management.
4. Provides as a great motivation factor among 4. Absence of teamwork between branches.
the potential customer.
5. Excellent management system.
6. It has high commitment of customer,
qualified and experienced human resource.
Opportunities: Threats:
1. High awareness among all level of people to 1. Increasing of commercial bank as well as
deposit money in the banks. private bank.
2. Increasing the demand of customer finance. 2. Increasing similar types of insurance
3. Strong relationship management. company, stock exchange and financial
4. It has potential on investment. institution.
3. Frequent changes in rules and regulations
from Bangladesh bank.

Operational Plans:

Operational plan is a detailed plan of an organization that gives a clear picture of how a department,
team or section should contribute to achieve organizational goal. Different departments of IFIC
bank have different operational plan which are given below:
 Departments
General Banking
Accounts Department
Cash Department
Credit Department
Foreign Exchange Department
Investment Department
Execution plan of IFIC Bank
Operations
 Depositing and withdrawing money.
 Opening new account and closing account.
 Issuing check book and debit card.
 Calculations, clearing and vouchering are done in
this department.
 Besides all internal mistakes and wrong entries are
also solve in this section
 Authorization and depreciation are calculated here.
 Everyday transactions are recorded in voucher and
computer (server) and finally in register
 they count the money, entry all cheque leaves,
vouchers and deposits.
 It gives both business loan and personal loan.
Before giving business loan they ensure that the
business is profitable and prospering. They want to
see their (clients’) cash inflows and bank
statement to know about their financial condition.
After that they see all the documents for their
safety issue like trade license, mortgage asset’s
documents, past loan records (if any) etc. then they
analysis about the loan whether it will be risky or
not, after this credit analysis they prepare a report
for approval from head office. If head office
permits then they will provide the load to the
customer.
 To handle foreign inward remittance as well as
outward remittances.
 Buying and selling foreign currencies.
 Giving the consultancy services to the exporters
and importers.
 Devoted to handling queries from shareholders
and investors.
 Analyst and respond to the specific queries of
agencies.
In order for any business to succeed they need to have the right planning, the right strategy, and the
right execution of these things. Consulting WP helps its clients expand and grow by providing them
all three. We know how important it is to have the right plan, if your plan is wrong then every step
you take will be in the wrong direction as well. This moves companies away from their objective
instead of towards it. IFIC Bank study their clients deeply before suggesting any plan, because they
have to ensure that we have all the variables in check. Once they have a plan, they work with their
clients on creating a strategy. Many people think strategy and plan are the same but Consulting
Word Press Theme knows better. They know that plan is what we try to achieve and strategy is how
we are going to achieve it.

Organizational Principles of IFIC Bank Limited

IFIC Bank Ltd. has a flat and flexible organizational structure with limited levels of management
and broad spans of control, including project teams and task forces. Networking and horizontal
communication are encouraged with clear accountability in supervision of the mangers and the
hierarchical chain of command. Clear levels of responsibility and well-defined objectives are
mandatory element to be maintained. The bank has a structure which assures transparency in
operational speed and personal responsibility, with strong focus on results, reducing bureaucracy as
much as possible.

IFIC Bank Limited maintains a chain of command of top-down approach to take necessary
decisions for the company. Basically, the management of this organization follows the centralized
strategy where the Head Office of the Bank controls and monitors all the activities of its branches.
In case of marketing strategy, the bank basically depends on word of mouth as IFIC Bank LTD. is
already well reputed for its long-term service in the banking industry.
 Figure1: Organogram of IFIC

Information and technological structure of IFIC Bank Limited:

Present information technology structure of IFIC Bank

1. Computer System

2. Computerized Services

3. Future Computerization

1. Computer System

 Computerized Branches: 136 out of 136 (i.e., 100%) branches are computerized
throughout the country.
 Local Area Network: All Branches (i.e., Motijheel, Federation, Dhanmondi, Gulshan,
Moulvi Bazar, Narayanganj & Agrabad) are operating in Local Area Network environment.
  Banking Software: Currently all the brunches are using BexiBank 4000+.
 Operating System: Most of our Branches, which are using BexiBank 4000+, are operating
their Computer System in DOS (Disk Operating System). Branches, which are operating in
LAN environment, are using Windows seven or Novell NetWare operating system.
 Central Backup System: Presently Information Technology & Computer Division of Head
Office is maintaining an Office Central Backup System for all the Computerized Branches
and Division of Head Office of our Bank.
2. Computerized services:

 Tele Banking (Computerized Phone Banking): The management has implemented

computerized phone banking technology in 82 Branches (i.e., Motijheel, Federation,
Dhanmondi & Gulshan).
 SWIFT Network: Presently our International Division of Head Office is operating their
Foreign Trade related transaction through SWIFT Network.
 Electronic Mail: 82 Branches has (i.e., Motijheel, Federation, Gulshan, Dhanmondi,
Narayanganj & Agrabad) are using Email facility for international and internal
correspondence.
 In future, all AD Branches will be brought under email facility.
 Home Banking: Our Bank is currently engaged in implementing this new service for Banss
high net-worth selected business clients. At present now, all the branches are using MISYS
software system. This software system has been brought from the USA.

Management of IFIC Bank Limited

For any financial and non-financial organization, Management are the most valuable and important
resources of any kind of organization. And, a well-organize management provides the organization
to reach its ultimate goal. Management means planning, organizing, staffing, directing and
controlling of all financial and non-financial resources of an organization. Different aspects of
management practice in IFIC Bank Limited are discussed below.
 Planning
IFIC Bank Limited has done its planning within the purview of the corporate plan. The overall
planning approach in IFIC Bank Limited is top-down. Each branch can plan according to the goal
imposed by the corporate level. It doesn’t plan independently. And, IFIC Bank Limited has a
planning division. This department is mainly responsible for the overall planning.

 Organizing
IFIC Bank Limited is organized as per the existing business locations. It has 114 branches, each of
which is a separate entity. Each unit is responsible for its own performance Relationship Manager.
He is directly responsible for the performance of their unit. Within each branch it is organized
functionally.
 Staffing
The recruitment in IFIC Bank is done as a ―Probationary Officers‖ for the management level and it
has a probation period of one year and their career path is headed towards different managerial jobs.
 Directing and Controlling
The management approach in IFIC Bank Limited is top-down or authoritative. Every information
just seeks through lower management layer. Works are designed in such a way that one cannot
leave without clearing the tasks as he is assigned for a day. Sitting arrangement in all office is done
in a way that the superior can monitor the subordinate all time. Budgeting, rewarding, punishing,
etc. are also practiced as control mechanism.

Span of Control

Decision Making Process and Power

As per the senior HR Executive, the decision-making process of IFIC bank is initially a centralized
system because the top management has all the authorities to make the decision. But however, all
the feedbacks are collectively taken from the employees, which also makes it a decentralized
system. The top management allows all level of management the opportunity to give inputs on
decisions. Also, the top management has the power to influence any kind of decisions. If any
department is willing to take any sort of changes in their task, or any other works, an approval must
be taken from the top management. It can only be done if the top management allows to do so.
Therefore, in this regard, IFIC uses a legitimate power as they have the right to influence based on
their position in the organization.

Well-structured and ill-structured

Managers at different levels of the organization deals with well-structured as well as with ill-
structured problems. The well-structured defines problem which have specific goals, clearly defined
solution paths, and a clear expected solution. A lot of problems are occurring every day in the
organization. If the growth of sales is not satisfactory then the problem is handled by marketing
department head only. The marketing department head discusses the problem with the employees of
his/her department about how to solve the issue, and how to increase the growth of this sale. On the
other hand, if any kind of problems arise in the finance, the same thing is done by the account
department.

On the other hand, ill-structured defined problems are those that do not have clear goals, solution
paths, or expected solution. There are three types of problems IFIC bank is facing:

 Unmotivated employees: due to not having proper HR plan, like employee benefits and
others and appreciation of employees from some department of IFIC, the employees seem
very unhappy and unmotivated. Talented professionals are generally not very well groomed
 in any negative working environment. Thus, poor motivation and lack of recognition leads
to poor performance and also a very poor quality of service output.

 Voluntary turnovers: one of the most important issues is turnover. The causes of turnover
are very much related to dissatisfaction. However, being unhappy in the job is not the only
reason of IFIC’s employees to leave their job. There are also some other reasons like lower
pay, poor benefits, for which employees leave the job.

 Office bullies, gossipers, trouble makers: IFIC has a very friendly office environment. In all
department employees treat each other like family. However, there are some issues that
sometimes people in IFIC are facing, such as bullying, gossiping and trouble making within
the workplace. These can cause serious anxiety and stress among employees.

If anyone in any organization faces these problems, then they need to talk immediately to their
supervisors or the department head to handle it. The problem should also go to the HR department
for a quick solution.

HR department

The HR Dept in IFIC is focused on recruitment and in-house training for both on the job and off the
job Bank staff members through the Bank’s Academy. IFIC Bank Academy is the oldest institution
in the private sector which was considered of as an in-house training center to take care of the
training needs of the Bank internally. The academy is fully equipped with a professional library,
modern training services and professional faculty. Library has about 4941 books on banking,
economics, accounting, management, marketing and other related subjects. 

In addition to conducting courses internally, The Academy also selects candidates for nomination to
various courses conducted by distinguished training organizations in the country including
Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management. The Academy
also re-designs its courses, programmers etc, regularly to meet the requirement of new skills arising
out of various directives, guidelines of the Central Bank and significant changes in the banking
sector from time to time.

Functions of HR Department

Policy:

The first step of an HR department in IFIC is to establish a policy. The HR policy of IFIC serves as
the backbone that guides the behavior and expectations of employees and management. It is only
natural that the employees will push the limits on matters like dress code, absences, interpersonal
interaction, and achievement goals. But IFIC HR policy provides an overview of how the
organization functions and more importantly, how employees must contribute to the well-being of
the effort.

Recruitment and selection:

The HR Department of IFIC follows both external and internal source of recruitment. The

company’s human resources staff recruiter alert current employees or the public of an immediate or
future job opening within our company. Usually, IFIC bank’s HRD follows end to end recruitment
process.

 External recruitment: In IFIC Bank HRD conducts all kind of job posting advertisement
and creating the job descriptions. Usually, the job posting appears on website or blog or in
print media, such as newspapers, magazines, and industry-related publications. Job postings
might also appear on career, job board, classified ad, and social networking sites. For the
website, IFIC prefers BDJobs, LinkedIn, as well as specific Facebook group and pages.
Besides they also communicate with different universities and their career office through
email as well as over the phone for them to provide them with a pool of intern candidates.
The company also participates in university job fairs as campus recruitment. The candidate
has to pass through a written exam in order to be qualified for the position applied, and the
exam is followed by taking a viva.

 Internal recruitment: IFIC Bank also does internal recruitment among its employees to fill
the vacancy from within its existing workforce. It is done through their internal website
where the company gives a circular about their recent opening/vacancy only for the existing
employees. The employee has to input his/her ID and their experience. And there is no
written exam for any internal recruitment. The candidate is only chosen through a viva taken
directly by the higher authority. Internal recruitment is advantageous for any organization
because it is cheaper and quicker to recruit and people already familiar with our business.
Most importantly, the HR dept already knows about the employee’s strength or weakness.

Training and development

IFIC Bank’s HR department provides employees with the tools necessary for their success, which
means giving new employees extensive orientation training to help them transition into a new
organizational culture. IFIC also offers new personnel sizeable orientation education to assist
employees introduce into a new organizational culture.
 Performance management: Through KPIs and performance reviews HRD let employees know
how they have been doing and what further development or training they need to do to improve.
Reviews are available to all employees. IFIC incorporates KPIs into their business by setting and
measuring personal targets for individual employees and departments.

Compensation and benefits: IFIC maintaining the compensation and benefit segment according to
Bangladesh Labor Law – 2006, amended in 2013. There are three

types of specific Incentives Plans (IP) for three departments and those are as follows:

 Business Development Department: Incentives based on sales target vs. achievement.

 Education Department: Incentives based on KPI vs. Goal accomplishments.

 Digital Marketing Department: Incentives Based on Lead Generation.

IFIC benefit structure plan is ongoing where HRD is working on 2 festival bonus and yearly
increment. Other proposals of benefit structure plans are yearly performance bonus, gratuity for
employee’s experience in IFIC for two years and earned leave encashment. This entire proposal
depends on the company’s profit margin.

Development Strategy of HR Department

IFIC day by day is developing their development strategies. As a new initiative, HR Department
has started a new activity of recognition through maintaining recognition board which helps the
company for best employee appreciation and fining out performer of the month. Problem sharing
day is still a part of the new initiative, there each department shares their problems in-house openly
and unsolved issues are addressed to the top management. At first, they advertise their job post at
BDJOBS now they are using LinkedIn and also using social media site which is on Facebook, in
this way they are developing their employee recruitment selection.

Conclusion

With more than 40 years of banking experience, IFIC Bank Ltd. is obliged to yield with superior
service to its valued customers. The management of IFIC Bank LTD. always offers special efforts
to preserve the interest and trust of their customers. IFIC Bank Ltd. has settled itself into an intense
position among all the banks through providing excellent service and special effort. The main focus
of IFIC has always been to facilitate its customers by concentrating on the demand, which therefore
differentiates IFIC with other banks. Despite of its enormous position in the industry, it has some
weakness, which the company can overcome easily. IFIC Bank LTD. has a much higher aptitude to
have clutch on the existing market. So, to be the leader, they have to overcome their limitations. To
compete in the environment of advanced technology and faster communication, IFIC Bank LTD.
should execute more polished quality service and information technological equipment. There is no
doubt regarding the fact that IFIC Bank LTD. has achieved superior position in the banking
industry. But to cope up with customer’s expectation, the bank should start working on making
their services proactive. In order to sustain in the competition with the other banks in terms of
equity maximization and larger market share, IFIC Bank LTD. should introduce easier way for
faster processing of credit analysis and most importantly update their database system on a regular
basis.

References:

http://www.msrblog.com/business/finance/comparative-analysis-between-fdr-and-mis-services-in-
ific-bank.html

https://www.assignmentpoint.com/business/finance/report-on-ific-bank.html

https://www.knowledgiate.com/the-functions-of-foreign-exchange-department-in-a-bank/