Internship Report on Operating Performance of BRAC Bank Ltd

A Bank is usually defined as an institution that deals in money. Today, however, the functions of a bank have a increased so much that is considered as a very vital agent of development in a country like ours. Because of their positive involvement in trade, industry, business, finance and a host of other allied services, banks today represent very important part of any economy. The most valuable natural resource of Bangladesh is its people. As a nation we struggled for our independence and now the attainment of economic uplift is the main goal. Micro lenders are working here in the financial field, providing very small amount and on the other hand regular commercial banks have been providing bigger amount of loans to larger industries and trading organizations. But the small and medium entrepreneurs were overlooked.

This missing middle group is the small but striving entrepreneurs, who because of lack of fund cannot pursue their financial uplift, as they have no property to provide as equity to the commercial banks. With this end in view-BRAC Bank was opened to serve these small but hard working entrepreneurs with double bottom line vision. As a socially responsible bank, BRAC Bank wants to see the emancipation of grass-roots level to their economic height and also to make profit by serving the interest of missing middle groups. 50% of our total portfolio usually collected from urban areas, are channeled to support these entrepreneurs who in future will become the potential strength of our economy. We are the market leaders in giving loans to Small and Medium Entrepreneurs. We have been doing it for the last five years.

In October 2002, the Company Legislation and Regulatory Framework Committee (CLRFC) recommended that legislation be enacted to introduce Limited Partnerships (LPs) in Singapore. The purpose is to increase the options available to businesses and investments. LPs are suitable for private equity and fund investment businesses.

The LP structure resembles the general partnership but it has added feature of limited liability for the limited partners. It will be an attractive structure for persons who wish to conduct business as investors but do not wish to take an active role in the management of the business and who prefer to entrust the management of the business to any one or more persons who have sufficient confidence to assume unlimited liability.
A LP will have at least one partner whose liability will be unlimited (referred to as the “general partner”). This means that the general partner will be liable for all the debts, obligations and liabilities incurred by the LP during the period when he is a general partner. A LP can also have one or more partners who will not be personally liable for the debts, obligations and liabilities of the LP and whose liability will be limited (referred to as the “limited partners”). Limited partners are not allowed to take part in the management of the LP and have no power to bind the LP.

A body corporate is allowed to be a general or limited partner. There is no upper limit on the total number of partners in a LP. A LP does not have a legal personality separate from the partners. This means that the general partner has to bear all responsibility under the law and is liable for the debts and obligations of the LP. However, the limited partner shall only be limited by the amount paid or agreed to be paid. This is the unique feature of a LP structure.

The general partner will be personally liable for the debts, obligations and liability of the LP incurred during the period when he is a general partner. Where there are two or more general partners, then each of them will be jointly and severally liable for those debts, obligations and liabilities incurred during the relevant period.

The limited partners will not be personally liable for the debts, obligations or liabilities of the LP. However, if a limited partner takes part in the management of the LP’s business, he will be personally liable for all debts and obligations of the LP incurred during the period he participated in the management of the LP as though he were, for that period, a general partner.

In Bangladesh expect rich people general mass has no interest in Banking in the early 50’s of last century, but in60’s there happened a revolutionary change in competition among the banking sector. As central bank, Bangladesh Bank controls all the banks in Bangladesh. Traditionally the structure of banking system of Bangladesh attached with British banking system. At present there are many private sector- banking structure has been established beside the government-banking sector. In our country there are 4 Nationalized Commercial banks controlled by the government, 5 specialized banks, 30 private Local Commercial Banks (including 4 Islamic Banks), 10 Private Foreign Commercial Banks (including 1 Islamic Bank).
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