BUSINESS COMMUNICATION

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MBM 502

Presentation on
BANKS IN MIRPUR
Presented by:
 Amite Hassan Nilay (180637)
 Nabila Haque Khan (180638)
 A.H.S.M Rafikuzzaman (180639)
 Mohammad Kafy Raz (180640)
 Md. Sifatul Islam (180641)
 Md. Monirul Islam (180642)

January 29, 2018

2 Outline of the Presentation
 Introduction
 Purpose
 Methodology
 Limitations
 Commercial Banks
 Functions of a Commercial Bank
 Grameen Bank
 Credit delivery system
 Indicators
 Conclusion
3 Acknowledgement

 Mr. Masudul Haque

Assistant Professor, Dhaka School of Bank Management
 Mr. Nirmal Kumar Chowdhury
Assistant General Manager, Central Accounts Department, GB
 Mr. Ashit Babu
Senior Principal Officer, Central Accounts Department, GB
4 INTRODUCTION

 Banking sector of Bangladesh contributes significantly to the national

economy.
 Commercial banking system plays the most vital role in the financial sector of
Bangladesh
 Grameen Bank is specialized in micro-finance.
 The concept of providing microcredit helps in major contribution to poverty
reduction and the empowerment of women in Bangladesh.
5 PURPOSE

 The main purpose is to investigate the banks objective to become highly

professional and profitable through mass communication to both internal
and external stakeholders
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7 Methodology

 We were assigned to visit all bank branches that were located in the area
from Mirpur Circle 1 to Mirpur Circle 10.
 For this report we visited different branches and studied their activities,
discussed with officials and tried to take pictures of the work environment.
 For better understanding of the situation we visited Grameen Bank and
interviewed Mr. Nirmal Kumar Chowdhury, AGM and Mr. Ashit Babu, SPO,
Central Accounts Department.
 The objective of the interview was to – analyse the unconventional ideas of
operations of the bank; better understanding of micro credit delivery system in
BD.
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9 LIMITATIONS

 Although we whole heartedly tried to collect information from both primary

and secondary sources,
 There were still few drawbacks to the data collection as all questions during
the interview could not be asked or answered due to the banks internal
privacy and policy guidelines.
 Due to security reasons not all branches allowed us to take pictures
 Finally visiting all the branches were very tough and might have missed few
in the process which acted as a limitation to the report.
 Commercial Banks
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Commercial bank is a profit-based financial institution that

grants loans, accepts deposits and offers other financial
services.
11 Banks We have Visited
12 Functions of a Commercial Bank

 General Banking:
13 Functions of a Commercial Bank (cont.)
 Credit Operations:

1. Cash Credit:
14 Functions of a Commercial Bank (cont.)
2. Demand Loan:

3. Overdraft:
 15 Functions of a Commercial Bank (cont.)
 Foreign Trade Operation:

1. L/C Opening

2. Import & Export Financing

 16 Functions of a Commercial Bank (cont.)

3. Foreign Remittance Operations

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History of Grameen Bank
 History of Grameen Bank
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• Professor Dr. Mohammad Yunus launched a credit delivery program at 1976

• The action research demonstrated its strength in Jobra village near Chittagong
University and some of the neighboring villages during 1976-1979.
• After one year, with the sponsorship of the central bank the project was
extended to Tangail in 1979.
• With the success in Tangail district, the project was extended to several other
districts in Bangladesh.
• In October 1983, the Grameen Bank Project was transformed into an
independent bank by government legislation.
• Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned
by the government.

That’s why it is called Bank of the poor!

19 Basic Information of
Grameen Bank
 Basic Information of Grameen Bank
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• The head office is located at Mirpur-2,Dhaka.

• 40 zonal offices all over the country.
• 246 area offices which are situated in different Upazillas.
• Total 2568 branches of Grameen bank in Bangladesh.
• They have no financial activities outside the country. (January 2018)
• Around 21000 employees are working for Grameen bank.
• On an average, Grameen Bank lends 1,500 crore taka per month.
• Since its inception in 1983, the bank has distributed 123,000 crore
taka in loans.(June 2017)
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22 Deposit Products

Grameen Bank collects deposits from both members and non-members of GB.
The followings are popularly used in the bank:
 Fixed Deposit
 Savings Deposit
 GPS Deposit
 Double money Deposit
 Current Deposit
 Monthly Profit Deposit
23 Credit Products

Grameen Bank offers a number of micro-credit facilities only to its members

 Basic Loan
 Special/Investment Loan
 Bridge Loan
 House Loan
 Education Loan
 Contract Loan
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The mode of operation of Grameen Bank

 A bank branch is set up

 a branch manager and a number of center managers
 15 to 22 villages
 Visiting villages to familiarize themselves with the bank
 Groups of five prospective borrowers are formed
 only two of them are eligible for, and receive, a loan
 The group become eligible themselves for a loan
 only if the first two borrowers begin to repay the principal plus interest over a period of six
weeks
 the collective responsibility of the group serves as the collateral on the loan
 The interest rate on all loans is 16 percent
25 Grameen Bank credit delivery system
 There is an exclusive focus on the poorest of the poor
 Special loan conditionality which are particularly suitable for the poor
 loans given without any collateral
 loans repayable in weekly instalments spread over a year
 Loan portfolio to meet diverse development needs
 housing, sanitary latrines, tube-wells
 loan for leasing equipment / machinery, i.e., cell phones
 This is reflected in the “16 decisions” adopted by Grameen borrowers
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27 10 Indicators
1. The family lives in a house worth at least Tk. 25,000
 able to sleep on bed instead of on the floor
2. Pure water of tube-wells, boiled or purified water
3. All children (over 6yrs) are going to school or finished primary school
4. Loan installment is paid regularly
5. Family uses sanitary latrine
28 10 Indicators (Cont.)
6. Family members have adequate clothing
 mosquito-nets
7. Family has sources of additional income
 such as vegetable garden
8. The borrower maintains an average annual balance of Tk. 5,000 in her
savings accounts
9. Three square meals a day throughout the year
10. Adequate healthcare
29 CONCLUSION

 All the banking

operations are done
through
communication.
 Business
Communication is very
important in banking
business.
 THANK YOU
ANY QUESTIONS/suggestions?

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