Function of Commercial

Banks in Bangladesh

Presented by

Md. Atiqur RahmanDepartment of Electrical & Electronic Engineering

Leading University

Objective Of This Study

What is Commercial Banking Functions of Commercial Banks in Bangladesh Activities of Commercial banks in Bangladesh Contribution of Commercial Banks in the Economic

Development Role of Commercial Banks in 21st century

What is a Commercial Banking

A commercial bank is-

A type of financial institution & intermediary Provides transactional Savings Money market accounts and that accepts time

deposits

List of Commercial banks in Bangladesh

United Commercial Bank Limited Mutual Trust Bank Limited BRAC Bank Limited Eastern Bank Limited Dutch Bangla Bank Limited Dhaka Bank Limited Islami Bank Bangladesh Ltd Uttara Bank Limited Pubali Bank Limited IFIC Bank Limited National Bank Limited The City Bank Limited NCC Bank Limited Prime Bank Limited Southeast Bank Limited

Al-Arafah Islami Bank Limited Social Islami Bank Limited Standard Bank Limited One Bank Limited Exim Bank Limited Bangladesh Commerce Bank Limited First Security Islami Bank Limited The Premier Bank Limited Bank Asia Limited Trust Bank Limited Shahjalal Islami Bank Limited Jamuna Bank Limited ICB Islami Bank AB Bank Marcantile Bank Limited

Foreign Commercial Banks in Bangladesh

Citibank HSBC Standard Chartered Bank Commercial Bank of Ceylon State Bank of India Habib Bank Limited National Bank of Pakistan Woori Bank Bank Alfalah ICICI Bank

Functions of Commercial Banks in Bangladesh

Functions of Commercial Banks in Bangladesh

Receiving Deposits

Current Account

Saving Account

Fixed Deposit

Advancing Loans

Making Loans

Short Term Loans

Medium Term Loans

Long Term  Loans

Bank Overdraft

Cash Credit

Discounting of Bills

Receiving DepositsThis is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers.

Current Account or Demand Deposits

Saving Account

Fixed Deposit

Current Account or Demand Deposits

Any amount can be withdrawn from this account at any time without any notice. No interest is allowed on this type of account.

Saving Account

This type of deposit account which is usually held by the middle class group. The saving account carries lower rate of interest.

Fixed DepositAmount cannot be withdrawn before the fixed future date in this type of deposit. High interest is allowed in fixed deposit which is different according to period.

 Advancing Loans

This is the important function of the commercial bank. Credit is given to the people in different ways.

Loan Account

There are three types of loans given to borrowers.

i. Short Term Loans:These loans are advanced for the period of six months to one year. High Interest rateIs charged on this type of accounts.ii. Medium Term Loans:Loans from one to five years are called medium term loans.iii: Long Term Loans:Loans which are advanced for the period, more than ten years are long term loans.

Bank Overdraft

Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft.

Cash Credit

Bank also gives credit against immovable property and interest is charged by the bank.

Discount of Bills

This is income source of bank to discount bills of exchange. They charge nominal Interest and discount only reputed and clear bills of exchange.

Activities of Commercial banking in Bangladesh

United Commercial Bank Limited

UCBL provides all general banking services to its clients through its 110 branches all over the country. Savings and current accounts, transfer of money, Western Union Money Transfer are some of the

services UCBL presents. Deposit

Schemes

Loan and credit services

Remittance services

Stock brokerage service

Innovative Services

Saturday Banking

AB Bank Limited

AB Bank Limited is the first private sector bank in Bangladesh. AB Bank provides-

Retail Bankin

gCorpor

ate Bankin

g SME Banking

NRB Banking

Islami Banking

Investment Banking

Merchant Banking

Project Finance

Loan Syndication

Money Transfer

Custodial Service

Brokerage Services

Islami Bank Bangladesh Ltd

As a consumer bank Islami Bank Bangladesh Limited provide consumer-

LoansIslami deposi

t schem

esATM Card

services

Locker 

Banking

Services

Dutch-Bangla Bank Limited

Stock Exchange

ATM Networks

Fast Track

Internet Payment Gateway

Mobile Banking

Dutch-Bangla Bank Limited (DBBL) is a scheduled join venture private commercial bank in Bangladesh.DBBL provide consumer-

Contribution of Commercial Bank in the Economic Development

Banks promote capital formation

Investment in new enterprises

Promotion of trade and industry

Development of agriculture

Balanced development of different regions

Influencing economy activity

Implementation of Monetary policy

Monetization of the economy

Export promotion cells

Role of Commercial Banks in 21st century

The commercial banks are now not confined to local banking.

They are fast changing into global banking i.e., understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc.

The commercial bank are now considered the nerve system of all economic development in the country.

Reference

www.ucbl.com  www.dutchbanglabank.com www.islamibankbd.com  www.abbank.com.bd www.bdresearch.org www.cib-lettercredit.com

Thank You

Question