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 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.

This report covers six chapters. Chapter one deals with the introductory aspects of the study like Background of the Study, Objective of the Study, and Scope of the Study etc.

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.