BRAC bank is a scheduled commercial
bank established under the banking Act.1991 and incorporated as a public
company limited by shares on 20 May, 1999 under the company Act.1994 in Bangladesh. The
primary objective of the bank is to carry on all kinds of banking business. The bank could not start
its operations till 03 June ,2001 since the activity of the bank was suspended
by the high Court of Bangladesh. Subsequently, the
judgment of the High Court was set aside and dismissed by the appellate
Division of Supreme Court on 04 June,
2001 and accordingly, the bank has started operation from 04 July, 2001.
BRAC Bank has a unique institutional
shareholdings between BRAC, the largest DFO in the world, the International
Finance Corporation (IFC), the commercial arm of the World Bank Group, and
Shorecap International, a concern of ShoreBank Corporation, America’s first and leading
community development and environmental banking corporation.
A fully operational Commercial Bank,
BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium
Enterprise Business, which hitherto has remained largely untapped within the
country. Almost 40% of BRAC banks clients had no prior experience with formal
banking. The has 313 regional marketing unit offices offering services in the
heart of rural and urban communities and employs about 1,200 business officers-
about 70% of total staff.
Since inception in July 2001, the
Bank's footprint has grown to 22 branches, 350 SME unit offices and 19 ATM
sites across the country, and the customer base has expanded to 200,000 deposit
and 45,000 advance accounts through 2006. In the years ahead BRAC Bank expects
to introduce many more services and products as well as add a wider network of
SME unit offices, Retail Branches and ATMs across the country.
IFC is a 19% shareholder in BRAC Bank.
A new assistance program signed in August 2005 aims to double the bank’s number
of small and medium enterprise clients in 18 months through campaigns to target
women entrepreneurs and rural clients, introduce new products and train branch
managers.
The bank
operates under a “double bottom line” agenda where profit and social
responsibility go hand in hand as it
strives towards a poverty-free, enlightened Bangladesh.
1.2
Objective of the Study:
The central
theme of the present study is to identify analyze the trend and growth pattern
of financing Small and Medium Enterprises of BRAC Bank Ltd. from the period of
financial liberalization. This specific objective is the accumulation of some
other pertinent objectives that are enumerated as under-
¨To highlight the general banking activities
of BRAC Bank Ltd.
¨To evaluate the
performance of Operating performance of BRAC Bank Ltd.
¨To gather knowledge about the functions and
transactions of different department of bank branches and
cheek the compliance of practice with the theory.
¨To
evaluate the overall portfolio of SME financing of BRAC Bank Ltd.
¨To assess the growth and pattern of SME
financing.
¨To suggest remedial measures for the
betterment of the deposit mobilization status in the banking
sector of Bangladesh.
1.3 Scope:
BRAC bank is
a scheduled commercial bank established under the banking Act.1991 and
incorporated as a public company limited by shares on 20 May, 1999 under the
company Act.1994 in Bangladesh.
This report covers the organization’s structure, chronological growth and
development performance of the BRAC bank Ltd. A fully
operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market
niches in the Small and Medium Enterprise Business, which hitherto has remained
largely untapped within the country. Almost 40% of BRAC banks clients had no
prior experience with formal banking. The has 313 regional marketing unit
offices offering services in the heart of rural and urban communities and employs
about 1,200 business officers- about 70% of total staff.
1.4 Methodology of the Study:
The
methodologies (covering the sample design, period of study, types and sources of data and
techniques of analysis) that have been chosen for the are delineated below-
(a) Sample design: I have made a design for the study
and dissertation purpose and selected officers and clients of BRAC Bank Ltd. of
different categories as sample unit.
(b) Period of study:
The period of study is from the year 2001 to the year 2006.
(c) Types and sources of data: As the nature of the study
dictates, the secondary sources of data (i.e. the published data) have been
used here. A good number of sources of secondary data are used to meet the
purposes of the present research work. The sources included : Scheduled Bank
Statistics, Economic Trend published by the Bangladesh Bank, various
publications of the Ministry of Finance (MOF), different books, articles and
Annual report of BRAC bank Ltd. Exact sources of data are cited in the
footnotes of each table. From the array data sources, Scheduled Bank Statistics
and Bangladesh Bank Bulletin of different years since 1972 have been
comprehensively used.
1.5 Limitation of the Study:
The following limitations are apparent in the study:
(a)
Time constraint is the first
limitation of the study.
(b)
Another limitation of this report is
Bank’s policy of not disclosing some data and information for obvious reasons, like confidential nature of
bank transaction. There is also relevant documents which is unpublished and not
to disclose due to confidential nature.