Body Part@Premier Bank

CHAPTER-ONE

INTRODUCTION

1.0 Introduction

1.1 Origin of the Study

Now we are living in the age of competition at anything in any places. From that tendency

recently Education is also in the age of competition. So different universities and institution

in our country upgrade the procedures and standards of teaching. In respect to that, internship

is mandatory for our BBA program offered by university. This program is a partial

fulfillment of our BBA curriculum. To do so my respected teacher has given me a topic

about Banking sector that “The General banking and Credit Operation: A Study on

Premier Bank Limited”

1.2 Objectives of the Study

Every task has a particular aim. A study without objectives cannot reach the destination. My

internship program was also directed to some particular targets. The main objectives of this

study are “General Banking and Credit Operation: A Study on Premier Bank Limited”.

For searching the overall customer related job I had to find out the general Banking and

Credit operation department at this branch. So the objectives of the study conducted in the

Premier Bank Limited are mentioned as under:

To be apprehended about real banking operations.

To know the functions of Premier Bank Limited.

To identify the customer servicing systems of the Bank.

To detect the employees capability to provide quality service.

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To find out deviations from theories and reasons of deviation.

To make SWOT analysis and recommend if necessary.

1.3 Rationale of the Study

Three types of schedule commercial banks are in operation in our economy. They are

Nationalized Commercial Banks, Local Private Commercial Banks and Foreign Private

Commercial Banks. PBL has discovered a new horizon in the field of banking area, which

offers different General Banking, Credit scheme, Investments and Foreign Exchange banking

system. So I have decided to study on the topic “General Banking and Credit Operation:

A Study on Premier Bank Limited”. As the Internship program of the university is an

integral part of the BBA program, it is obligatory to undertake such task by the students who

desire to complete and successfully end-up their BBA degree. This also provides an

opportunity to the students to minimize the gap between theoretical and practical knowledge.

During the internship program the teachers of the department are attached to actively and

constantly guide the students. Students are required to work on a specific topic based on their

theoretical and practical knowledge acquired during the period of the internship program and

then submit it to the teacher. That is why I have prepared this report.

1.4 Scope of the Study

This report has been prepared through extensive discussion with bank employees and with

the customers. While preparing this report, I had a great opportunity to have an in depth

knowledge of all the general banking formula and credit management activities practiced by

“Premier Bank Ltd.” It also helped me to acquire a first hand perspective of a leading private

Bank in Bangladesh. Specifically the report covers the following areas:

Background of Premier Bank Ltd.

General Banking of PBL

Credit Management by Premier Bank Ltd.

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1.5 Methodology of the Study

The study is performed based on the information extracted from different sources collected

by using a specific methodology. This report is analytical in nature. The methodology is as

follows.

Population: All the Branches of PBL located in everywhere in Bangladesh has been taken

into consideration as population. Special focus is given on Meghnaghat Branch where I have

completed my internship.

Data collection: Source of data of this report can be divided into two categories:

Primary Sources

Face to Face conversation with the respective officers and staffs.

Interviewing officers and staffs.

Sharing practical knowledge of officials.

Relevant file study provided by the officers concerned.

In-depth study of selected cases.

Secondary Sources

Annual Report of PBL

Audit Reports

Website

Relevant books, Research papers, Newspapers and Journals.

Internet and Study of selected reports.

Different Circulars of Bangladesh Bank.

Different guidelines of Head Office, Premier Bank Ltd.

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1.6 Limitations of the Study

I have tried to present the paper with a very cautious approach. To prepare the report I had to

gather different relevant, books, brochures, journals and annual reports of the concerned

banks. To prepare this paper I had to face the following constraints:

1. I have seen that it is hard to do the office job and prepare the report at a same time.

To collect data I had to visit different libraries and offices, but I used to work in the

office from 8.45 AM to 6:30PM. Therefore, it was very tough to arrange the time for

report writing and data collection.

2. Unavailability of sufficient written documents as required for making a

comprehensive study.

3. As a Bank org. the officers are involved with various functional areas of Premier

Bank Ltd. are very busy. So they cannot give me sufficient time as I am required.

4. Due to maintain secrecy they avoid some of my question specially the actual amount

of specific items. It is hampered my analysis.

5. On-line system also briar for my study. Because they do all transaction and record by

automation system. Due to maintain secrecy they are not allowed to use their On-line.

6. Some officers were absent and some were on their job training when I was carrying

on my internship.

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CHAPTER-TWO

OVERVIEW OF PREMIER BANK LIMITED

2.1 Introduction

Premier Bank Limited, (PBL) ‘Service First’ is a fast growing private commercial bank and

it is already at the top slot in terms of quality service to the customers and value addition for

the shareholders. Yes, in the backdrop of economic liberalization and financial sector

reforms, a group of highly successful local entrepreneurs conceived an idea of floating a

commercial bank with a different outlook. For them it was competence, excellence and

consistent delivery of reliable service with superior value products. Accordingly, The

Premier Bank Limited is incorporated in Bangladesh as banking company on June 10, 1999

under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh, issued

banking license on June 17, 1999 under Banking Companies Act.1991. The Head Office of

the Premier Bank Limited is located at Banani, one of the fast growing commercial and

business areas of Dhaka city.

2.2 Vision of the Bank

The Bank has clear vision towards its ultimate destiny - to be the best amongst the top

financial institutions.

2.3 Missions of the Bank

To be the most caring and customer friendly provider of financial services, creating

opportunities for more people in more places.

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To ensure stability and sound growth whilst enhancing the value of shareholders

investments.

To aggressively adopt technology at all levels of operations to improve efficiency and

reduce cost per transaction.

To ensure a high level of transparency and ethical standards in all business transacted

by the Bank.

To provide congenial atmosphere which will attract competent work force who will

be proud and eager to work for the Bank.

To be socially responsible and strive to uplift the quality of life by making effective

contribution to national development.

2.4 Objectives of the PBL

PBL is ready to improve the highest quality customer service through new. IT

products & services such as ATM. ONLINE BANKING & POINT OF SALES

transaction.

The Major objective of PBL is to maximize profit through customer’s satisfaction.

The bank plays a vital role in socio-economic development of Bangladesh by

developing worldwide network in domestic & international operations.

2.5 Salient Features of PBL

Premier Bank is engaged in conventional commercial banking as well as Islamic

banking based on Islamic Shariah Principles.

It is the pioneer in introducing and launching different customer friendly deposit

schemes to tap the savings of the people for channel ling the same to the productive

sectors of the economy.

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For uplifting the standard of living of the limited income group of the population, the

Bank has introduced Retail Credit Scheme by providing financial assistance in the

form of loan to the consumers for procuring household durables.

The Bank is committed to maintaining continuous research and development to keep

pace with modern banking.

The operations of the Bank are computer oriented to ensure prompt and efficient

services to the customers.

2.6 About PBL

The Premier Bank Limited provides various commercial banking products and services in

Bangladesh. It offers various deposit products, including savings accounts, current accounts,

corporate accounts, short term deposit accounts, fixed deposits, double benefit schemes,

monthly income schemes, monthly savings schemes, and education savings schemes. The

company also provides project loans, working capital loans, trade finance, house building

finance, contractors financing, receivable financing, cash credit, over drafts, packing credit,

trust receipts, guarantees, and letters of credit. In addition, it offers various credit schemes,

including lease finance, consumer credit schemes, doctors’ loan schemes, small and medium

business loan schemes, student credit schemes, rural credit schemes, and agro processing

loan schemes. Further, the company provides locker, online banking, and SMS banking

services. It operates approximately 38 branches and 5 SME service centers. The company

was incorporated in 1999 and is headquartered in Dhaka, Bangladesh.

2.7 Board of Directors

The Board consist of 15 (Fifteen) Directors. The members of the Board of Directors of the

Bank hold very respectable positions in the society. They are from highly successful group of

Business and Industries in Bangladesh. Out of 15 members one is from Taiwan. Each

member of the Board of Directors plays a significant role in the socio-economic domain of

the country. A list of the Directors and their shareholding along with associated business is

given below:

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Dr. H.B.M. Iqbal

ChairmanDr. H.B.M Iqbal

Mr. B.H. Haroon M.PVice Chairman Mr. Abdus Salam Murshedy

Director

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http://www.premierbankltd.com/html/board_of_directors.php#4%234



Mr. Shafiqur RahmanDirector Mr.Yeh Cheng Min

Director

Mrs. Shaila Shelly KhanDirector Ms. Nawrin Iqbal

Director

Mr.Shah Md. Nahyan HaroonDirector

Ms. Parsa AminDirector

Mr.Md. Lutfur RahmanDirector

Mr.Md. Masud Zaman Director

Mr.Kazi Abdul Mazid Mr. Niaz Habib

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Director Managing Director

Management Committee

Mr. Niaz HabibManaging Director

Mr. Abu Haniff KhanAdditional Managing Director

Mr. Mokhlesur RahmanAdditional Managing Director

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2.8 Management Hierarchy of PBL

Managerial decision-making authority starts from the Principal Officer. The top-level authority goes to the Chairman, the Board of Directors and the Managing Director.

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Deputy Managing Director

Senior Vice President

Senior Executive Vice President

Senior Officer

Vice President

Principal Officer

Assistant Vice President

Executive Officer

Senior Assistant Vice President

Officer

Senior Executive Officer

Assistant Vice President

Junior Officer

2.9 Branch Network of PBL

PBL is operating through 30 branches located in Dhaka, Chittagong, Khulna, Rajshahi,

Sylhet, Jessore, Barisal, and Narayangong where the Local branches along with the Principal

Branch in Dhaka.

1. Motijheel.2. Dilkusha.3. Gulshan .4. Banani.5. Mohakhali.6. Bangshal. 7. Kawran Bazar.8. Elephant Road.9. Mohakhali.10. Dhanmondi. 11. Uttara. 12. Dhaka EPZ.13. Kakrail.14. Meghnaghat.15. Savar bazaar.16. Narayangonj.17. Imamgong.18. Tongi.19. Bhairab Bazar .20. Joyedebpur.21. Ashugong.

Existing Branches

Dhaka Division

Barishal Division

Sylhet Division

Chittagong Division

Khulna Division

Rajshahi division

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1. Agrabad.2. Khatungonj.3. Nazim Road Branch.

1. Rajshahi. 1. 1. Khulna.

2. 1. Sylhet Branch. (IBB)

1. Barishal .

22. Zinzira.

CHAPTER-THREE

GENERAL BANKING OF PREMIER BANK LIMITED

3.1 Account opening:

A person is treated as a client when he/ she open an account on the bank. Then it becomes a

contractual relationship between bank and client. The account opening section of Premier

Bank Ltd. Meghnaghat branch is very important section. This section takes care of all the

relevant duties related to the opening of account. There are different types of account

facilities provided by this branch. These are:

1. Current deposit (CD)

2. Saving deposit (SB)

3. Fixed deposit (FDR)

4. Short term deposit (STD)

5. Pension Saving Scheme (PSS)

6. Education Saving Scheme(ESS)

7. Marriage Saving Scheme (MSS)

8. Bearer certificate deposit (BCD).

3.2 Account opening Process:

Step 1 Receiving filled up app. form in bank’s prescribed from monitoring what type of a/c is desired to open.

Step 2 App. form is filled up by the applicant himself/ herself. Two copies of passport size photograph from individual are taken, in case of firm photo of all partners are taken. Application must submit with required document. Introducer must sign application. Card must bear specimen signature.

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Step 3 Authorized officer accepts the application.

Step 4 Minimum balance is deposited only cash is accepted.

Step 5 Account is opened and a cheque book and pay-in-slip book is given.

3.3 General condition of governing accounts:

1. The law rules and regulation of Bangladesh usual custom and procedures common to

Banks in Bangladesh will apply to govern the conduct of account opened with the

Bank.

2. Any person opening an account will be deemed to have read, understood and accepted

the rules governing the account. Minimum balance to be maintained in current A/C. Tk.

10,000/- and in savings A/C Tk. 5,000/-

3. A suitable introduction by an introducer acceptable to the Bank is required prior to

opening of any account. Recent photographs of the account openers duly attested by the

introducer must be produced.

4. Each account will be given one account number. This number is to be properly quoted

on all letters and/ or documents addressed to the Bank and on all deposit slips. The

Bank will not responsible for any loss or damage occurring as a result of wrong

quotation of account number.

5. Interest/ commission/ service or maintenance of account charge will be levied by the

Bank as determined by the Bank from time to time and as per Bangladesh Bank

regulation.

6. The funds available in any of the account holders account (the customer) with the Bank

will be considered by the Bank to be a security for any commitment(s) and/ or

obligation(s) present and/ or future of the customer to the Bank. In the event of

dishonor or non-fulfillment of such obligation(s) and/ or commitment, the Bank is

entitled without giving prior notice to the customer to utilize such funds against the

obligation(s) and/ or commitment of the customer to the Bank.

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7. Any statement of account dispatched to the customer will be considered as approved

unless discrepancy (ies) is notified in writing to the Bank within 15 days from the date

of dispatch. The Bank is not responsible for the delays or non-delivery due to mail

problems. Statement of accounts to be picked-up will be considered as approved even if

not pick-up 15 days after the date they are produced. Statements of accounts are not

produced when there is no operation during the Month. Those can be obtained on

special request.

8. Account holders must provide maximum security to the cheque books in there

permission and the Bank is not responsible for any loss or misuse must be immediately

reported to the Bank and confirmed in writing without delay.

9. When cheques deposited are payable by other Banks or outstation they are available

after clearing or collection only. Service charge will be charge @ Tk. 100/- in current

account and Tk. 50/- in savings account yearly or as charge by the Bank from time to

time as and when required.

10. The Bank reserves the right to close any account without giving prior notice if the

conduct of the account is unsatisfactory in the opinion of the Bank or for any other

reason(s) what so ever.

11. The balance in the account(s) is payable solely at Premier Bank Ltd. and shall be

govern by and subject to laws in effect in Bangladesh. As used herein “laws” will

includes Bank circulars, Modification, regulation and order of the government and

Bangladesh Bank including practice in Banking.

12. The Bank reserve the right to amend the present rules at any time in any manner with or

without giving prior notice to the account holder(s) separately of to the public. The

chequebook will not be issued unless and until all the required formalities are

completes.

3.4 Closing of an account:

A customer may close out his/ her account at any time by submitting an application to the

branch. The customer should be asked to draw the final cheque for the amount standing to

the credit of his account less the amount of closing (Tk.-50/- in PBL) and other incidental

charges and surrender the unused leaves of the chequebook. In case of joint account all the

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joint account holders should signed in the application for closing the account. On receipt of

the application the following steps are taken:

a) The signature of the account is verified.

b) The number unused leaves of the chequebook shall be noted thereon.

c) The manager will approve the application.

d) Incidental charge should be debited the account.

e) The account holder is advised to draw the remaining balance from the a/c.

3.5 Cheque

A cheque is treated as an important document in the branch. Cheque is an instrument in

printed from containing an unconditional order signed by the a/c holder directing a certain

person to pay a certain amount of money only to or to the order of a certain person or the

bearer of the instant.

3.5.1 Issue of a cheque book:

The in charge of the department stock of the cheque book will get to know and to

allow entering the DCBIR (Department cheque book issued register)

Separate folios of the register are allotted for CD A/C of cheque book of 100 leaves

and 10, 15, 25, 50 for SB A/C

At the time of opening an A/C the customer is required to sign a cheque book

requisition slip (No.S.F.-73) if the A/C opening form is found complete in all respect

a cheque book is issued to the client.

The account number is written in each page of the chequebook and its requisition slip.

The name and account number of the client is also entered in the CBIR

The requisition slip should be preserved as voucher.

3.5.2 Loose cheque is issued if…

The party requires a loose cheque & has the loose check requisition slip supplied to

him by the bank.

An officer who personally knows him attests the requisition slip.

The officer in charge deposit department verifies the signature of the account holder.

The approval of the manager has been obtained to issue that loose cheque.

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The name of the account holder, his account number, date of the loose cheque issued

and the amount to be drawn is written of the cheque and its counterfoil.

A stamp bearing the bearing the title LOOSE CHEQUE is affixed on the face of the

cheque at top under authorized signature.

3.6 Remittance Section

Remittance means transfer of money from one place to another. In banks it is done in the

form of DD (Demand Draft), TT (Telegraphic Transfer) or pay order. The details are as

follows:

3.6.1 Demand Draft (D.D.)

Demand draft is that kind of instrument which is payable on demand. A branch issues it to

another branch containing and order to pay a certain amount of money to ascertain person.

To issue a D.D. the sender of the D.D. should have and A/C with that Issuing Branch. D.D.

can be send from one branch to another by cash or cheque. Every bank charges a certain

amount as commission for issuing a D.D. the commission is 15% of the worth of DD+VAT

(commission*15%) + Telex – Taka 40

The Flow chart of the total procedure of issuing Demand Draft is as follows:

Against Cash:

The Customer is asked to complete a form (No. Sf-18) which is treated as an

application as well as credit voucher for H.O. Account (Br. Concern).

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Purchaser has an A/C with the branch & purchaser a DD

DD is in favor of a person or a company

The beneficiary deposits the DD in his A/C

His A/C is credited the draft is collected or cleared.

Commission Charges are calculated and inserted in the form.

The voucher than given to the customer to deposit the amount.

The cashier receives the cash and delivered the voucher to the remittance department

against initial in his book.

Then the draft is prepared and entered in the D.D. issue register. The amount of the

draft is protected by the ‘protect to graph’. Then the draft No. is written of the

voucher.

Draft book and the voucher along with register are sent to officer in charge of the

remittance department for part -11 tests, verification and signature.

The draft and the voucher are sent to general section head for part-1 test and

signature.

Then a memorandum is issued to the customer if be desires so.

Payment of D.D.:

The followings should be checked before payment of D.D.:

D.D. is drawn on the branch.

Issuing branch’s rubber stamp is fixed.

Amount in word & the amount in figure should be same.

Verify the test number is tested.

The payee must be properly identified in case of cash payment.

If D.D is placed before arrival of ‘IBA’ then make the payment by debiting.

Suspense A/C. D.D paid without advice, advice will come than.

Particulars of D.D payable & D.D paid without advice is entered in the respective

register.

3.6.2 Pay Order:

If any person wants to transfer money within the local areas, where the bank located, then

‘pay order’ makes the transfer. Difference between ‘Pay Order’ and ‘Demand Draft’ is in

terms of place only. Pay order is issued for remitting money within the city whereas D.D is

issued for within the country.

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Issue of Pay-Order:

To issue a ‘Pay Order’ the party should maintain an A/C with the bank. The bank also allows

special customers without A/C for pay-order in special circumstances. The main feature of

pay order is that in where (that is in which branch) the P.O. is issued the party should encash

the money from the same branch.

Table: charges of issuing pay order:

Amount up to (Tk.) Charge rate (Tk.) VAT (Tk.)

1,00,000 25 4

5,00,000 60 9

Above 5,00,000 75 11

The procedure for selling P.O. is as follows:

a. Purchaser must be an account holder of PBL, Meghnaghat Branch.

b. Depositing money with P.O. application form.

c. Giving necessary entry in the bills payable (PO) register.

d. Payees name, date, P.O. no etc.

e. Preparing instrument.

f. After it has been scrutinized & approval by higher authority, the instrument is

delivered to customer. Signature of customer is taken in the counterpart.

Practice and operation of Pay Order (P.O.):

Types of P.O.:

Account payee only : Only can encash it by depositing it in account.

Blank crossed : Any one can encash it by depositing in their account.

Cash payment : Identification regarding payee.

Settlement of a P.O.:

When P.O. submitted by collecting bank through clearinghouse, the issuing bank gives

payment. Thus bank’s liability is settled by debiting bills payable. But before giving payment

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it should be examined whether endorsement was given by the collecting bank or not. If not

her instrument is dishonored marking ‘Endorsement required’.

Collection of P.O.:

A customer of PBL who is the payee of a P.O. will deposit it for collection. The instrument is

given to the clearing that will place it to the issuing bank in the clearinghouse. Before

placement, PBL as a collection bank gives necessary endorsement.

3.6.3 Telegraphic Transfer (T.T):

This is the most usable instrument in remittance section. In local office, T.T is generally done

by telex, telephone is also used necessary.

Issue of T.T:

To issue a T.T the party should maintain an A/C with that issuing Bank. Then…

a. The customer is asked to complete an application that is also treated as credit voucher

for head office account (Branch concern)

b. Telegram charges are also recovered from the customer and are credited to income

account telegram charges covered a credit voucher is prepared for the customer.

c. Text of telegram is written and handed over.

d. Then the massage is typed on the form.

e. The original telegram & confirmation is sent to the dispatch department.

f. IBCA is prepared in duplicated. A Separated register is maintained for T.T issue.

Telegraphic transfer is one of the fastest means of transferring money from one branch to

another or from one place to another. The T.T issuing bank instrument is given for T.T both

parties should have account, as money is transferred.

Outgoing T.T- Its Procedure:

a) Application by customer along with money given.

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b) In receipt of money a cost memo is given to the customer containing T.T serial

number. The customer informs this number to the awaiting party in the other branch.

c) Tested fax message is prepared, where T.T serial number of the concern party to

whom the money will be credited is mentioned.

d) Activity report is received from the telex department confirming transmission of

message.

Incoming T.T- Procedure:

a) After receiving the fax message it is sent for test agree.

b) T.T serial number is scrutinized in the “T.T in –concern branch” register.

Payment of T.T:

The payment of T.T requires a lot of paper works. Vouchers are made. At first H.O. concern

bank is debited with T.T payable credited. Then the T.T payable is debited with party’s A/C

debited. The receiving party can also take the cash after his A/C is credited. For the payment

of T.T caution must be taken because various fraud and forgery. So test no. is required for

security.

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CHAPTER- FOUR

SERVICES OF PREMIER BANK LIMITED

PBL is offering 5 types of services. This are-

4.1 Retail Banking

The Retail Banking Division comprises the domestic branch network with the specialized

customer credit, real estate finance. Retail banking deals with the banking services to the

individuals. Premier Bank’s retail banking strategy is aimed at keeping as closely in tune

with their customers’ needs as possible and further improving the quality of advisory

services. As a result, PBL offers different product ranges to different target groups. It

includes the following:

Deposits Services: Individuals may open current, savings, STD, fixed deposit

accounts.

Wage Earners Services: PBL offers a few innovative schemes to Bangladeshi wage

earners working overseas.

Customer Loans: PBL provides consumer’s loan services.

4.2 Institutional Banking

Premier Bank Limited offers various services to foreign mission, NGOs and voluntary

organization, consultants, airlines, shipping lines, contractors, schools, colleges, universities,

donor agencies and consultants.

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The services include the following:

Deposit scheme

Current accounts in both Taka and major foreign currencies.

Convertible Taka accounts

Local and foreign currency remittances.

Various types of financing to cater to the banking requirements of multinational clients.

4.3 Corporate Banking

A professional account management team caters to the needs to corporate clientele and

provides a comprehensive range of financial services to national and multinational

companies. Its services include:

Corporate deposit accounts

Business lending

Merchant banking

Small and medium enterprises

Readymade garments

Projects finance investment, constancy and other finances.

Syndicated loans.

Local and international treasury products.

Bonds and guarantees.

Skilled and responsive attention to varying lending needs

4.4 Commercial Banking

Being a commercial Bank PBL provides comprehensive banking services to all types of

commercial concerns. Some of the services are:

Trade finance

Issuing of import L/Cs.

Advising and confirming export L/Cs.

Bonds and guarantees.

Investment advice.

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Project finance opportunities for import substitution and export oriented project.

Leasing: It is a very flexible arrangement, which is tailored to suit most requirements

of its clients. Lease financing by Premier Bank is a unique means of funding a firm’s

need for capital equipment without actually lending to the firm.

4.5 Correspondent Banking

Services of correspondent banks include:

Current accounts services where settlement is necessary.

Issue bonds and guarantees in support of their customer business.

Advise letter of credit and negotiation of documents.

Market intelligence and status report.

4.6 Deposit:

Savings Account

Current Account

Corporate Account

Short Term Deposit Account

Fixed Deposit

Special Deposit Scheme

Monthly Income Scheme

Monthly Savings Scheme

Education Savings Scheme

4.6.1 Savings Account:

The PBL pays interest (7.0% p.a.) on daily balances on Savings Accounts. Most of the Banks

in Bangladesh pay interest on monthly minimum balance. So, if the account holder is

maintaining say Tk. 10.00 Lac in his Savings Account with present Banker for 29 days and

his deposit balance drops below Tk. 1000 even for a single day, then the account holder is

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http://www.premierbankltd.com/html/deposits_education_ac.php

http://www.premierbankltd.com/html/deposits_monthly_savings.php

http://www.premierbankltd.com/html/deposits_monthly_income.php

http://www.premierbankltd.com/html/deposits_special_ac.php

http://www.premierbankltd.com/html/deposits_fixed_ac.php

http://www.premierbankltd.com/html/deposits_shortterm_ac.php

http://www.premierbankltd.com/html/deposits_corporate_ac.php

http://www.premierbankltd.com/html/deposits_current_ac.php

http://www.premierbankltd.com/html/deposits_savings_ac.php

not getting any interest on that amount. There are also several restrictions on withdrawal

from the Account to qualify for interest.

In Premier Bank, however, the account holder will get interest on any amount that you keep

in the account. There is no restriction for withdrawal from the account and we are paying

interest @ 7.00 % p.a. on daily balance. PBL hopes that the account holder will take full

advantage of this offer and place your deposits with our Bank to earn more.

4.6.2 Current Account:

The current account is very much suitable for the businessman or in the name of a company.

This account holder does not get any interest but can draw any amount and many times even

a single day. Bank charge and excise duty are imposed here.

4.6.3 Corporate Account:

PBL is also paying interest @7.00% p.a. on daily balance for corporate customers. It is a

savings account that operates like a virtual current account. There is no restriction on

withdrawal. Now the account holder can have all the features of current account with the

interest of savings account.

4.6.4 Short Term Deposit (STD) Account:

PBL pays interest @ 6.50% p.a. on the daily closing balance of Short Term Deposit (STD)

Account. Interest is payable on daily closing balance. Any individuals and corporate bodies

can open STD account.

4.6.5 Fixed Deposit:

PBL pays very competitive rate of interest on Fixed Deposit (FDR). Indicative rate for one-

year deposits at present is 11.50% p.a. The account holder could also deposit for

1/2/3/6/12/24/36 months term - The choice is yours.

Term Rate of Interest (% p.a) Tk. 100 Lac and above (% p.a)

1 Month 9 9

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3 Month 11.50 11.75

6 Month 11.75 12.00

1 Year and above 12.50 12.75

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4.6.6 Special Deposit Scheme:

Under this scheme, any deposit becomes almost double after 7 years and triple after 10 years.

The bank accepts deposit in multiple of Tk. 10,000.00.

Terms Initial Deposit Payable at Maturity

5 - Years Tk.1,00,000/- Tk.1,50,000/-

7 - Years Tk.1,00,000/- Tk.1,80,000/-

10 - Years Tk.1,00,000/- Tk.2,50,000

4.6.7 Monthly Income Scheme:

The account holder saving is precious! Let the account holder investment generate a regular

monthly income for you through this scheme. The account holder shall get benefit of Tk.

950.00 every month against deposit of Tk. 1, 15,000.00 for 5 years and Tk. 850.00 every

month for 3 years. The effective rate of interest is 9.80% and 9.23% respectively.

Terms Initial Deposit Monthly benefit

3 - Years Tk. 57,500/- Tk. 425/-

5 - Years Tk. 57,500/- Tk. 450/-

3 - Years Tk.1,15,000/- Tk. 850/-

5 - Years Tk.1,15,000/- Tk. 950/-

Deposit of Tk. 50,000 or its multiple is acceptable.

4.6.8 Monthly Savings Scheme:

A regular savings pay off when the account holder really needs it. Save small amount in the

account holder each month and let the account holder savings grow with time through this

Monthly Savings Scheme.

27

Terms Monthly deposit On maturity

3 - Years Tk. 500/- Tk.20,750/-

3 - Years Tk. 1,000/- Tk.41,500/-

5 - Years Tk.500/- Tk.38,400/-

5 - Years Tk.1,000/- Tk.76,800/-

Monthly deposit of Tk. 500 or its multiple is acceptable

4.6.9 Education Savings Scheme:

The scheme has been designed to make future educational expenses of your children easier.

Against an initial deposit, the bank provides a monthly amount after maturity or payment at a

time as the depositor desires. A deposit of Tk. 50,000.00 will be Tk. 80,000.00 after 5 years.

You may draw the amount at a time or you may choose to draw by monthly installment of

Tk. 1,700.00 for a period of 5 years. Deposit of Tk. 25,000.00 or its multiple is acceptable.

Terms

(Years)

Minimum Deposit or

multipleAmount Payable at Maturity

Annual Effective

Rate

5 Tk.25,000/- 40,000/= at a Time 9.85 %

5+5 Tk.50,000/- Monthly 850/= (60 Months) 10.05 %

The choice can be in multiples.

4.7 Loans & Advances:

Project Loan Working Capital Loan

Trade Finance (Domestic & International)

House Building Finance (Commercial & Residential)

Receivable Financing

28

Cash Credit

Over Draft

Packing Credit

Trust Receipt

Guarantee

Letters Of Credit

4.8 Special Credit Schemes:

Lease Finance Consumer Credit Scheme Doctors Loan Scheme Small & Medium Business Loan Scheme Student Credit Scheme Rural Credit Scheme - Poverty Alleviation Agro Processing Loan Scheme

Lease Finance:

Premier Bank, a fast growing Private Commercial Bank has introduced Lease Finance to

facilitate your funding requirement for the procurement of assets in order to grow your

business.

Premier Bank offers Lease Finance facility for:

a) Capital Machinery.

b) Medical Equipment.

c) Office Equipment.

d) Heavy Construction Equipment.

e) Lifts, Elevators, Generators, Air conditioners.

f) Machinery for Agro based Industry.

g) CNG Filling Station.

h) Automobiles like Bus, Mini Bus, Truck, Car, Pick up etc.

i) Other Costly consumer's durable.

29

http://www.premierbankltd.com/html/loans_rural_credit.php

http://www.premierbankltd.com/html/loans_students_credit.php

http://www.premierbankltd.com/html/loans_doctorsscheme.php

http://www.premierbankltd.com/html/loans_consumer_credit.php

http://www.premierbankltd.com/html/loans_lease_finance.php

Benefits of availing Lease Finance:

i) Simple Security Arrangements.

ii) Prompt service, simplicity and convenient.

iii) Financial need meet up without out flowing own fund: Little cash required. Individual can acquire the Lease Assets keeping his Capital intact. Thus leasing helps to build up his fund raising capacity.

iv) Tax incentives: Because lease rentals are treated as revenue expenditure and are entirely deductible for lease purpose.

v) Extension of credit sources: Leasing does not impair the ability of the Lessee to obtain credit in traditional ways since it does not make any change in the financial structure of the Lessee.

vi) Off Balance Sheet item; does not appear in the Lessee’s Balance Sheet and improves financial Ratios.

vii) Financial Flexibility: Through leasing capital will not be tied up with the acquisition of assets. You can invest your costly capital elsewhere for more profitable venture.

viii) Sales Aid Device: If you are a Manufacturer / Dealer, you may utilize Leasing as a sales promotion tool for achieving Sales Target.

Lease Term:

i) In case of Machinery / Equipment (Maximum) up to 5 Years.

ii) In case of Vehicle (Maximum) up to 4 Years.

Participation:

PBL may finance 100% of the Acquisition cost of the Lease Item.

Competitive Rate & Charges:

Interest Rate, Service Charge and Risk Fund all are competitive and

affordable.

31

Security:

Following collateral securities may be accepted:

a) Leased item itself.

b) Immovable properties such as Land, Building, etc.

c) Encashabel securities like FDR, BSP, Share Certificates of listed companies, ICB unit Certificate, Bank / Insurance Guarantees etc.

d) Corporate Guarantees.

e) Personal Guarantee of a person acceptable to the Bank.

f) Any other Assets acceptable to the bank as security.

Lease Rental:

The Lessee will pay monthly Lease Rentals through post-dated cheque containing the amount

of Rental in each cheque. The Rentals offered by The Premier Bank Limited are modest and

more competitive than other Banks or financial Institutions.

Lease Deposit:

Lessee shall have to deposit 3 months’ Rentals as Lease Deposit (non-interest bearing Lease

Deposit) which shall be refunded /adjusted at expiry of the lease term.

Grace Period:

In case of Capital Machinery and Equipment, maximum grace period of 6 (six) months may

be allowed.

Insurance Coverage:

32

The Vehicle / Equipment / Lease Asset(s) shall have to be covered by a Comprehensive

Insurance policy throughout the lease term at Lessee’s own cost in the name of The Premier

Bank Limited. The premium shall be on account of the Lessee.

Repair and Maintenance:

The Lessee is obliged to maintain the Lease Asset(s) in good working order and is solely

responsible for any loss or damage as long as it is in his / her possession. Repair or

maintenance cost for taking care of normal wear and tear and keeping the Lease Asset in

good running condition during the lease period shall be the responsibility of the Lessee.

Transfer of Ownership:

On final adjustment of the Lease Finance, the Lessee may have an option to purchase the

Equipment at the prescribed rate. Besides the above option, the Lessee may renew the lease

on year-to-year basis or return the Equipment to the Bank.

Consumer Credit Scheme:

Objectives:

- To extend credit facility to the limited income group.

- To develop standard of living of middle and upper middle class people.

- To participate in the socio economic development of the country.

Purchase of:

- Home appliances- Cars- Mobile phones- Furniture- Generator- Water pump etc.

Doctors' Loan:

Premier Bank found that many Doctors are very much interested to be self-employed but for

financial reasons most of them are unable to do the same. Similarly, Experienced Doctors,

33

Specialists and Clinics are also not equipped with the up-to-date Medical tools & equipment

for the same financial reason. Premier Bank has introduced easy to afford financial assistance

program "Doctors' Loan" to financially assist these qualified Doctors & Medical Practitioners

as follows:

Up to 100% Lease Finance for Medical Equipment.

Up to 100% Lease Finance for Motor Vehicles / Ambulance

Loan for Rental Advance, Office decoration, Furnishing etc.

Some of the great features that our Doctors' Loans offer are:

Quick & easy loan processing.

Lower interest rate.

Lower charges.

Rebate for timely repayment.

Longer term of repayment.

Early repayment without any penalty.

Eligibility:

Registered Doctors & Medical Practitioners, Eye Specialists, Heart Specialists, Child

Specialists, Surgeons, Dentists. Also Hospitals, Clinics and Diagnostic Centres owned &

operated by the registered Doctors.

Security/Collateral & Terms & Conditions:

Flexible Terms & Conditions.

Collateral is not mandatory.

Three (3) advance Lease/Loan installments.

Personal Guarantees.

Machineries/Equipments will be purchased under Hire purchase/Lease

Fiance/Consumer Credit Scheme and the ownership will remain in the name of Bank

(Hypothecated) duly insured until the borrower repays his debt in full.

34

Apartment Loan/Loan for Medical Chamber

PBL is not only focusing to improve your professional career but also giving high priority to

uplift your living standard by providing Personal Loans.

Now individual can also avail personal loan for the following purposes:

Apartment Finance for purchase of residential flat/Chamber up to 50% of value.

Repayment can be made in 10 years!

Consumer Credit Scheme for purchase of Car, TV, Air Conditioner, Freeze,

Computer, Washing Machine etc.

Appling Process:

Just call or visit any of PBL’s Branches. Officers will be glad to be your financial advisor

and provide you the application form and all information in details.

35

CHAPTER- FIVE

FINANCIAL INFORMATION

5.1 PERFORMANCE & GROWTH OF PBL

(In Million Tk.)

Particulars 2004 2005 2006 2007 2008

Authorized Capital 1000 4000 4000 4000 4000

Paid-up Capital 1000 1400 1750 2275 1400

Total capital fund 1312.63 1318.99 1815.58 2792.33 3603.03

Total Asset 20100.25 22767.84 27170.45 32573.19 38723.49

Deposits 18005.20 20290.47 241990.01 27114.47 32059.62

Loans and advances 15383.93 18032.50 20677.68 23637.61 30319.53

Profit before provision 930.93 899.03 942.07 998.11 1272.94

Credit deposit Ratio 85.44% 88.87% 85.45% 87.18% 94.57%

Income 2395.45 2863.86 3622.05 4186.33 5070.04

Total expenditure 1464.52 1964.83 2689.98 3188.22 3797.10

Foreign Trade 34108.50 33850.23 38797.18 43222.20 595446.70

Remittance 1408.00 1427.40 940.10 1620.60 2786.40

% of NPLs to total loans and advances 0.43% 3.86% 4.91% 5.96% 4.55%

Credit Deposit Ratio 85.44% 88.87% 85.45% 87.18% 94.57%

Earning per share (Taka) 84.40 32.45 43.63 4.66 38.51

Capital Adequacy Ratio 10.69% 8.24% 10.66% 12.66% 12.71%

36

Investment Growth

0500

10001500200025003000350040004500

2004 2005 2006 2007 2008

Year

Fig

in

mil

lio

n

Investment

No of Branches 21 21 26 27 30

No of employees 554 605 677 731 834 (Source: Annual Report)5.2 GRAPHICAL PRESENTATION OF PBL GROWTH

5.2.1 Investment Growth of PBL:

Year 2004 2005 2006 2007 2008Tk(in Million) 2750 2240.78 2392.01 3461.45 4107.03

(Source: 2008Annual Report)

5.2.2 Deposit Growth of PBL:

Year 2004 2005 2006 2007 2008Tk.(in Million) 18005.2 20290.47 24199.01 27114.47 32059.62

(Source: 2008 Annual Report)

37

Advance Position

0

5000

10000

15000

20000

25000

30000

35000

2004 2005 2006 2007 2008

Year

Fig

in

mil

lio

n

Advance

5.2.3 Advance Growth of PBL

Year 2004 2005 2006 2007 2008Tk.(in Million) 15383.93 18032.50 20677.68 23637.61 30319.53

(Source: 2008 Annual Report)

5.2.4 Operating Profit of PBL:

Year 2004 2005 2006 2007 2008

Tk. (in Lac) 930.93 899.03 942.07 998.11 1272.94(Source: 2008 Annual Report)

38

Deposit Poition

0

5000

10000

15000

20000

25000

30000

35000

2004 2005 2006 2007 2008

Year

Fig

in

mil

lio

n

Deposit

Operating Profit

0

200

400

600

800

1000

1200

1400

2004 2005 2006 2007 2008

Year

Fig

in

mil

lio

n

5.3 Performance at a glance

(Tk. in million)

Particulars2003 2004 2005 2006

2007 2008

Authorised Capital1000.00 2000.00 2000.00 2000.00

2000.00 2000.00

Paid-up Capital408.91 557.55 681.45 845.00

1689.99 1689.99

Reserve Fund130.00 301.08 403.85 543.76

649.79 870.22

Deposits10030.52 18005.20 20290.47 24199.01

27114.47 32059.62

Advances8095.57 15383.93 18032.50 20677.68

23637.61 30319.53

Investments1330.20 2750.00 2242.78 2394.01

3463.45 4107.03

Foreign Trade Business20934.30 33937.38 33571.00 38797.20

43222.20 59546.70

Foreign Remittance364.50 1408.00 1427.40 940.10

1620.60 2786.40

39

Income1251.76 2395.45 2863.86 3622.05

4186.33 5070.04

Expenditure851.03 1464.52 1964.83 2679.98

3188.22 3797.10

Operating Profit400.73 930.93 899.03 942.07

998.11 1272.94

Fixed Assets107.90 149.57 165.48 163.93

219.79 298.85

Total Assets11096.30 20100.25 22767.84 27170.45

32573.19 38723.49

Book Value per share (Taka) 168.12 207.69 203.31 192.44

145.88 184.39

Earning per share67.02 84.40 32.45 43.63

4.66 38.51

Dividend36.35%

36.84% 24% 10% 7% stock 24.00%

Loan as % of total Deposits 80.71% 85.44% 88.87% 85.45%

87.18% 94.57%

Non-Performing Loan as percentage of total Loan 0.36% 0.43% 3.86% 4.91%

5.96% 4.55%

Capital Adequacy Ratio11.76% 10.69% 8.24% 10.66%

12.66% 12.71%

Number of Branches17 21 21 26

27 30

No of Foreign Correspondents 238 297 345 350

397 430

Number of Employees435 554 605 677

731 834

5.4 Balance Sheet

Balance Sheet at 30 June, 2010

40

Particulars30.06.2010(Unaudited) 2009 2008

Amount in Taka Amount in Taka Amount inTaka

PROPERTY & ASSETS

Cash in Hand (including Foreign Currency)

326,379,920 384,326,638 320,939,821

Balance with Bangladesh Bank & Sonali Bank (including Foreign Currency)

3,073,542,273 3,218,789,171 2,699,389,111

Balance with other Banks & Fin. Institution

1,728,450,823 752,698,151 129,698,764

Money at Call & Short Notice870,000,000 920,000,000 230,000,000

Investment at cost7,885,868,845 6,513,012,747 4,292,146,286

Loans & Advances 41,094,899,636 33,664,587,265 30,319,527,312

Loans, cash credit and overdraft38,264,148,173 32,410,471,401 29,279,443,146

Bills discounted and purchased 2,830,751,463 1,254,115,864 1,040,084,166

Land, Building, Furniture and Fixtures etc.

592,659,908 529,550,014 298,846,419

Other Assets1,465,586,968 1,360,271,858 432,943,764

TOTAL ASSETS57,037,388,373 47,343,235,844 38,723,491,477

LIABILITIES & CAPITAL

Borrowing:other Banks, Fin. Inst.and Agents

1,396,155,449 1,930,995,165 104,100,166

Deposits & Other Accounts 46,898,797,723 37,381,956,159 32,059,617,665

41

Current and other Accounts9,499,699,107 8,908,456,271 7,478,926,349

Savings Deposits2,731,935,420 3,086,993,046 2,065,441,781

Fixed Deposits33,616,183,428 24,866,054,323 22,046,738,811

Bills Payable1,050,979,768 520,452,519 468,510,724

Other Liabilities 3,772,376,876 3,392,240,363 3,443,666,968

Total Liabilities52,067,330,048 42,705,191,687 35,607,384,799

Paid-up-Capital2,914,970,312 2,242,284,912 1,689,994,712

Statutory Reserve1,373,623,526 1,148,592,394 870,219,371

Other Reserve431,228,753 433,619,919

Retained Earnings 250,235,734 813,546,932 555,892,595

Total Shareholders' Equity 4,970,058,325 4,638,044,157 3,116,106,678

TOTAL LIABILITIES AND CAPITAL

57,037,388,373 47,343,235,844 38,723,491,477

5.5 Profit & Loss Account

For the Half Year ended on 30 June, 2010 (Unaudited) 30.06.2010 30.06.2009 2008 Taka Taka Taka Interest Income 2,262,017,632 2,050,563,793 3,837,254,457 Interest paid on Deposits & Borrowings

(1,549,288,437) (1,784,722,117) (2,906,739,580)

Net Interest Income 712,729,195 265,841,676 930,514,877Investment Income 530,466,055 240,554,018 372,921,619Commission, Exchange & Brokerage

320,066,587 276,460,408 608,048,088

Other Operating Income 257,019,989 133,551,480 251,816,108Total Operating Income(a) 1,820,281,826 916,407,582 2,163,300,692Salaries and Allowances 249,815,583 215,570,045 390,393,234Rent, Taxes, Insurance, 214,840,671 86,581,244 123,970,767

42

Lighting etc.

Legal Expenses1,067,437 1,787,818 4,153,564

Postage, Telegram, Telephone, Stamps etc

14,756,740 13,784,072 23,407,343

Auditors' Fees 83,353 8,360 295,900Printing, Stationery, Advertisement, etc

81,978,286 36,356,810 95,035,040

Chief Executive's Remuneration

2,787,095 4,192,464 5,981,161

Directors' Fees 1,161,000 776,000 678,800Depreciation and repairs of Bank's assets

33,542,151 25,882,610 47,956,049

Other Expenditure 95,093,848 40,671,126 56,865,383Total Operating Expenses(b) 695,126,164 425,610,549 890,365,205Profit before Provision(c=a-b) 1,125,155,662 490,797,033 1,272,935,487Provision against loans and advances

(48,760,000)

Specific Provision 139,205,000Total Provision(d) 257,351,672 (21,456,260) 44,869,050Total Profit before Income Tax(c-d)

867,803,990 512,253,293 1,228,066,437

Provision for Income Tax 393,398,656 208,588,739Profit after Taxation 474,405,334 303,664,554 650,745,468AppropriationsStatutory Reserve 225,031,132 102,450,659 220,427,287Retained earning for the year -Retained earning brought forward

250,235,734 204,816,290 -

Cash Dividend for the year -Issue of Bonus Share at Premium

672,685,400 552,290,200 -

Transafer to Dividend equalisation reserve

-

Retained earnings 555,892,595Earning Per Share ( EPS) 3.26 2.71 38.51

43

CHAPTER- SIX

CREDIT MANAGEMENT OF PBL

6.1 Know Your Customer (KYC):

The success of a bank and the consistency of it’s profits depend on the efficiency and safety

with which it makes use of it’s resources- Capital and deposits by lending those resources to

various types of borrowers.

Selection of customer is important; therefore the first criterion should be “Know Your

Customer”.

The major factor in successful lending is ability to judge the Character and Credit-worthiness

of the borrower.

44

i) Credit worthiness can be judged on certain general principles, which we should

follow in the decision making : -

a) The integrity of the borrower: - He should be a respectable and honorable man

who can be relied on to keep his promises.

b) The ability to repay the advance: - This ability will depend on his financial

resources, which is meant not only his income but also the property or capital that he

possess or will possess.

c) The purpose for which the advance is required: - The bank should ensure that the

purpose of the loan is such as to make the advance suitable as a matter of banking

business.

d) The source of repayment of the advance: - The banker should ensure that the

product which the borrower has been manufacturing/dealing with, has a good

demand in the market.

e) The period for which the advance is required: - An advance to a manufacturer to

enable him to buy raw materials to fulfill a profitable short-term contract is an

advance of temporary character promising sound banking business.

ii) Past dealing with the customer may give us a lead to the customers’ character and

trustworthiness, and personal knowledge of the man may confirm any opinion the

branch may have formed from the working of an existing account.

The branch will also consider the customers’ local standing, the influence he may be

able to exert (e.g. by introducing new customers), and whether he has been a good friend

to the bank in the past.

Traders or industrialists who require advances for purpose of their business usually have

some assets. When advancing to trading customers, therefore, the branch should ask for

Balance Sheet and Statements of Income & Expenditure for the previous 2/3 years so

that the branch can form an opinion of the value of the customers’ assets and liabilities,

and may obtain a true perspective of the trend of the customers’/ borrowers’ affairs.

45

While meeting an existing / potential customer the officer of the branch must check

whether the person with whom he will be dealing with i.e. proprietors/partners/directors

are extravagant in personal life style? Living beyond his means? And resort to irregular

behavior leading to evasive answers? To enable him to form an opinion of their

relationship with us.

While considering the business of an individual / entity the branch will value each asset

on a forced sale basis.

iii) The bank will not grant loans for purely speculative purposes.

iv) A business having negative net-worth should not be granted any credit facility if are

not covered by cash/quasi cash securities with adequate margin.

v) Always refer to Account opening form at the initial stage of your dealings with the

customers to establish the identity of the borrower.

vi) If the customer is a Public figure the account will be considered a High Risk Account.

vii) When opening accounts, the concerned officer must assess the risk that the accounts

could be used for “money laundering” and must classify the accounts as either High

Risk or Low Risk.

viii) Please get yourself acquainted with, ‘ANTI MONEY LAUNDERING

PROCESSES’- prepared by Focus Group on Prevention Money Laundering.

We must establish to our satisfaction that we are dealing with a real person (natural,

corporate or legal) and must verify the identity of persons who are authorized to operate any

bank or investment, or transact business for the customer.

We suggest an officer of this bank while meeting / discussing with a customer will prepare a

file note of the contents of discussion for future reference which may disclose changes of

address, telephone number and so on for incorporation/substitution in the AOF and other

records.

46

6.2 Customer Segmentation

Management of credit by segment wise approach is considered effective in the sense that an

officer who requires managing in one particular segment gains experience by handling same

type of borrowers. And in the course of handling he can expand his experience towards

managing and administrating an increased number of accounts with accuracy and confidence.

But an officer having number of accounts in various segments, with size and complexity will

be constraint to give equitable attention to his job and judgment.

More over the segment market approach will create a sense of competition amongst the team

members of different segments, which will effectively work towards achieving our annual

target for deposit and advance, and a better credit administrative function.

The customer segmentation will be as under: -

a) Personal segment

b) Foreign government segment

c) Public sector segment

d) Multinational segment

e) Local corporate segment

f) Others i.e. who does not fall in the above segments

The basic job of our Account officer/Business relationship officer/manager is to manage his

risk asset portfolio which, in short, includes appraisal, preparation of sanction advice,

documentation, regular follow up, review of the account including

restructuring/rescheduling, preparation of periodical return, recovery process etc.

6.3 Discouraged Business Types

47

The Bank will not grant any facilities to the following Business Types:

i) Bridge Loans relying on equity / debt issuance as a source of repayment;

ii) Counter parties in countries subject to UN sanctions;

iii) Finance of speculative investments;

Finance of Military Equipment/Weaponsiv) Bridge Loans relying on equity / debt issuance as a source of repayment;

v) Counter parties in countries subject to UN sanctions;

vi) Finance of speculative investments;

vii) Finance of Military Equipment/Weapons;

viii)Highly leveraged Transactions;

ix) Lending to Holding Companies;

x) Lending to slow moving items;

xi) Logging, Mineral Extraction/Mining, or other activity that is Ethically or Environmentally Sensitive;

xii) Lending to companies listed by CIB (Central Bank i.e. Bangladesh Bank’s Credit Information Bureau) as defaulters or known defaulters / habitual defaulters;

xiii)Highly perishable goods stored in godown;

xiv)Share lending;

xv) Taking an Equity stake in Borrowers etc.We should not grant facilities where our security position is inferior to that of any other

financial institution and that: -

a) Assets pledged / Hypothecated as security should be properly insured.

b) Valuation of property taken as security should be conducted prior to granting of loan by a recognized independent valuation firm.

6.4 Cross Border Risk

Risk associated with cross border lending. Borrowers of a particular country may be unable

or unwillingly to fulfill principle and / or interest obligations. Distinguished from ordinary

credit risk because the difficulty arises from a political event, such as: -

48

a) Suspension of external payments.

b) Synonymous with Political & sovereign risk.

c) Third world debt crisis, for example, export documents negotiated for countries like Nigeria.

Exceptions can only be granted by the Board.

6.5 Lending Strategy Statement & Risk Asset Management

Abbreviations used in this policy are as under:

RAM : Risk Asset Management.

ROA : Return on Asset

LIM : Loan Against Imported Merchandise

LTR : Loan Against Trust Receipt.

L/C : Letters of Credit

L/G : Letters of Guarantee.

M : Million

As general guideline companies forming PBL targets should have the following criteria:-

a) Targets should normally be the top companies and business firms of Bangladesh with a good track record.

b) Included in the track record will be annual net worth increase over the past three years.

c) PBL should look for a debt / worth relation of 2:1 to maximum 3:1.

d) A minimum current ratio 1:1.

Exceptions: Borrowing covered at least by 100% of credit balance i.e. Fixed Deposit / Saving Bank balance/ margin etc. in the name of the borrower or guarantor.

e) The borrowers’ integrity and market report must be beyond any question.

f) Satisfactory CIB /bank report required.

g) Proprietor / partners /directors must have experience in business.

h) Where audited accounts are not available actual financials in proper Statements of Income & Expenditure and Balance Sheet form for three years of which the latest one must not be older than three months from the date of submission of proposal should be made available to the bank.

i) Minimum after tax profit/ sales margin 5%.

j) Annual sales growth must not be less than 10%.

k) Minimum annual Net profit from each customer Tk. 2.00 Lac with minimum ROA 3%.

49

Types of Facilities: Funds based and Non fund based products available with PBL

Amount: up to maximum two/ three times net worth of borrower.0

Repayment: a) Maximum tenure in case of Term Loan 3-8 years;b) Cash credit / overdraft-12 months;c) LIM- maximum-120 days;d) LTR- maximum-120 days;e) L/C- validity-120 day’s maximum;f) L/G- validity maximum 12 months. Margin as per Bank-Customer relationship.

Pricing: As per Bangladesh Bank and PBL’s Pricing.

Security: Primary security plus collateral security to be provided for full

value of facility with adequate margin.

Insurance: In joint names for full value of security plus 10% against FIRE, RSD, Burglary,

Earth quake, flood, cyclone, Tempest. (Exemption will be considered on case to case basis).

Covenants and Conditions: Only those commodities which are essential consumer items and

basic raw materials of the industries having good marketability in short supply should be

financed. Duty, sales tax and other landing charges to be borne by the borrowers’ own

sources.

Performa for Personal Wealth Statement:

a) Name of Borrower with address :

b) Name of Proprietor/partner :/director with address

c) Name of the owner of the assets :(If assets are owned by more than one Person, please state separately ownership)

d) Description of Assets belonging to proprietor /partner/director :

Types Location Market Price/Value

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i) Cash

ii) Securities

iii) Stocks & Shares

iv) Receivables

v) Land

vi) Building

vii) Other Fixed Assets

e) Which of the above assets are encumbered with whom and for what value?

f) Connection of proprietor /partner/director with any other business concerns. Provide names of such concerns and percentage of ownership / shares.

Name and Signature of Proprietor / Partner / Director.

51

Risk Asset Management (RAM):

Purpose: Effective Risk Asset planning and administration.

Objective: Containment of credit losses. Improve profitability of the Bank.

Definition of ‘Risk Asset’: Risk assets for the purpose of RAM include contingent liabilities

such as letters of credit and guarantees also. These contingent liabilities must be treated from

a credit approval point of view as having the same credit exposure as funds based assets.

Steps in RAM Process:

a) Planning :

i) Target market criteria - to define desired customer base.

Note: Strategy as to desired customer base; consider risk inherent in each market; criteria to

define characteristics of an acceptable customer. Understanding of each market-which

one shows prospects of growth/ profitability ?

ii) Terms of Acceptance of Risk Assets - to define terms of our products (to target

customers).

Note: Define terms for our products/services to be offered, to produce desired profitability at

acceptable risk. Ancillary business?

Care! Higher earning prospect cannot justify a bad loan.

b) Initiation :

i) Client / Prospect Check Vs Criteria.

ii) Evaluation of his needs (know his business and his environment).

Note: Bear in mind funds availability; Plan your call. Perhaps you could use visit for a

pre-sanction inspection. Do Call Memo. Account Plan.

52

iii) Negotiation: - Terms - Bear in mind customer situation; also the agreed terms of

acceptance for the target market.

iv) Approval: Compliance with internal credit approval procedure.

Note: Facility application package i.e., Credit Memo with full background/financial

information, analysis of historical trend, prospects, anticipated profitability vis-a-vis

funds based, non-funds and/or exchange business expected. Any exceptions must be

listed for approval by appropriate authority.

c) Documentation & Disbursement:

Identify particular documents required for each facility and arrange completion. Enlist

outside legal assistance where necessary. e.g. when drawing up special consortium / term

loan agreements etc.

Appraise value of security offered vis-à-vis Bank’s needs.

N.B.: -

i) Go through the various items of documentation requiring to be certified in

the credit Memo and ensure full completion.

ii) Do not disburse until all required documentation is correctly completed. Any

exception to this rule must be referred to sanctioning authority.

d) Administration :

Administration is a continuous process. Effective administration requires a constant and

systematic review of the account and client activity.

i) Close monitoring of account.

ii) Keep abreast with client, his current activity, and expansion/diversification plans etc.

iii) Adherence to security requirements.

iv) Updating documentation, as required.

53

N.B.: -

i) Be alert to identify any deterioration in the credit.

ii) Look for warning signals for early corrective action.

iii) Consider down grading, the aim being to highlight risk areas and the need for closer

monitoring and control.

iv) Plan remedial action in consultation with controlling authority.

v) Remedial Management; work-out; restructure of debt.

A detailed procedure regarding Credit discipline may be based on the following lines:

(i) a) Request for application for facilities in banks printed form;

b) Examine the nature of facility required;

c) Acknowledge if it merits consideration /reject if the business does not suit us/meets

our credit policy requirement / Bangladesh Bank credit restriction.

(ii) a) Refer to the liquidity position while considering the facility;

b)Consider high yielding, short term, and self-liquidating advances with ancillary

business/compensating deposit;

c) Prefer quality advances;

d) Obtain/prepare credit report on the customer/update the report at least quarterly basis

(Banks’ opinion/CIB reports).

(iii) Ensure/request for further documents/papers if a qualitative analysis for

accepting the risks is necessary.

(iv) Ensure that the borrowing power is in order.

(v) Examine Memorandum / Articles of Association with particular reference to

borrowing power.

(vi) a) Obtain and examine the security documents.

54

b)Obtain Board resolution, create charge including floating charge on assets

hypothecated, book debt and mortgage created in favor of the bank. Assess directors’

worth and obtain their personal guarantees.

c) Prepare /obtain legal / registered mortgage of the documents/ record in the mortgage

register.

d) Diarize the review date of Credit Memo-1/2/3 months earlier from the due date.

e) Complete security documentation in all respects/ enter in the security register (safe

in) and ledger detailing the security lodged in the safe custody.

f) Insurance of the property –Fire, RSD, Burglary, natural calamities.

(vii) a) Prepare Credit Proposal detailing the terms /obtain approval/ ratification.

b) Prepare facility record sheet, which will evidence historical as well as current

facilities of the borrowers.

c) Call on the customers / prepare call reports /future action program /keep in file.

(viii) If risk is acceptable send the customer an offer / sanction letter in duplicate

detailing the terms and conditions under which the sanction has been made and obtain

the duplicate letter in agreement of the customer duly signed by him. Verify signature

and keep the copy in safe custody after obtaining a duplicate for the file. The following

points / terms should be kept in mind while preparing the offer / sanction letter: -

Purpose; Repayment term/tenure/review date; Primary security; Collateral security/

examination of documents by banks lawyer/law charges; Marketability of the security;

Valuation of the security; Inventory control/stock report/insurance/ frequent inspection;

Rate of interest/commission/quarterly rests; Balance Sheet -Trading Account, Profit &

Loss Account/ Cash budget/ Cash flow Statement etc.

(ix) a) Check on a regular basis main aspects of the cash budget and monitor the

flow of

cash particularly for repayment daily /weekly/ fortnightly/ annually/ bimonthly/

quarterly/ installments;

55

b) Ensure that purpose of the facility is properly utilized, no diversification;

c) Diarize expiry of insurance policy cover/ record details of the insurance in the

insurance register;

d) Ensure fortnightly / monthly stock statements/ find out the drawing power / record

the value of the stock/ book debts in the stock register;

e) Inspect stocks periodically –preferably jointly by selective officers;

f) Follow Bangladesh Bank regulations.

(x) a) Pledge of goods - counting /stacking / recording - ensure method is strictly

followed if

The quality of goods is dependant on long storage;

b) Obtain letter of disclaimer from the godown owner.

c) Undertake periodical stock inspection. Bring irregularity to the notice of the

concerned account / credit officer / manager immediately

d) Display signboard inside and outside the warehouse inscribing under “Lien / pledge

to The Premier Bank Limited”.

e) Engage approved C & F agents for clearing and storage of the goods.

(xi) Arrange credit file / segmentation.

(xii) Follow-up audit / inspection comments

A regular monitoring of the account is imperative to avoid any irregularity that might creep

in during the course of the facility. It is also their duty to check the periodical statements

pertaining their accounts to ensure correct reporting with brief necessary comments /remarks,

and for timely submission to the reporting authorities.

Last but not the least we require to examine that an account has not become time barred

under the law of limitation.

56

6.6 Restrictions on Loans & Advances

a) PBL will not make or commit any facilities to an entity or a number of entities under the

ownership of one customer, which exceeds 50% (Fund based 25% & Non fund based

25%) of the capital fund of the bank without obtaining Bangladesh Bank approval.

b) Similarly PBL will not make or commit any unsecured and/ or secured facilities to the

own Bank Director(s) or his /their dependants exceeding 50% of the shares hold by any

Directors subject to a maximum amount of Taka One million without the approval of the

Bank’s Board of Directors and Bangladesh Bank.

c) Clearance of Bangladesh Bank, Credit Information Bureau (CIB) is required for granting

Credit facility of any amount in order to ascertain that the prospective borrower has no

classified loan with other Bank(s).

d) PBL will not grant any facility to a customer having default loans outstanding with

another bank.

e) Our Bank will not grant Loans/Advances against security of its own shares.

f) Our Bank will not grant advances to a minor or a company where a minor is holding the

majority share.

g) PBL will not make loans against second mortgage of properties whose value is equal and

secured by 1st mortgage.

h) PBL will not make advances / loans to enable the borrower to speculate in shares and

debenture and / or commodities for hoarding purposes.

i) PBL will not make advances against properties in locations where we do not have a

branch.

j) PBL will not grant loans against accommodation bills.

k) PBL will not issue a guarantee of any type whose expiry is beyond three years without

having 100% margin.

57

6.7 Policy of Financing to Ready Made Garments Industries (RMG)

It may be mentioned that following types of financing are made to export oriented garment /

textile industries:

a) Capital financing (Term Loan) for import of machinery.

b) Back to Back L/C facility.

c) Packing Credit facility and

d) Negotiation/purchase of export bills.

Financing to export oriented Garments industries is lucrative and remunerative to the Bank in

the following considerations:

i) Major finance is in the form of BTB L/C which is non-funded.

ii) Bank earns from export oriented RMG finance in different form:

a) L/C commission;

b) Acceptance commission;

c) Exchange Gain;

d) Interest and other miscellaneous income.

iii) It is self-liquidating from export proceeds.

iv) Once a Garment client inducted it become a captive client for future & continuous Back

to Back L/C, Export and other allied business.

v) It is Bulk Credit.

vi) It continues throughout the year and not seasonal.

vii) Moreover, it contributes to the national economy in generation of Foreign Exchange as

well as Employment.

Side by side, financing to Garments sector is associated with considerable risk, which are as

follows:

i) Export failure with resultant stock-lot is a common phenomenon in this sector for

various reasons. Once stock-lot is created, Bank’s finance of large amount get stuck-up.

58

Exporters are not in a position to repay Bank’s dues from their own source until the

export of stock-lot is made.

ii) The exporters generally cannot provide adequate collateral security compared to the

quantum of credit facilities exposing the Bank to risk.

iii) It is Buyers’ market. Very often, buyers refuse payment of export bills on flimsy

ground and bargain for exorbitant discount, causing shortfall in adjustment of Bank’s

dues.

iv) Global Economic and Political conditions usually affect the RMG Sector to a great

extent. Knit Garments enjoy cash subsidy from the Government, timely release of which

by the Government is also very essential. However, recent Government move is to

withdraw this facility.

In view of the above advantages as well as the risk factors the Bank should be very selective

in allowing finance in the sector.

For safety of Bank’s finance in Garments sector, the following points are to be taken in view:

i) PBL should avoid Project / Capital Finance in RMG & give preference for working

capital financing to self financed projects. However, our existing factories shall be

allowed to import additional machinery for balancing / expansion purpose.

ii) PBL should induct only those clients who have minimum 5 years experience in this

line & has and excellent proven track record.

iii) The credit limit should be consistent with the production capacity & performance of

the factory.

iv) Back to Back L/Cs should be opened after examining the Credit report, reputation and

past performance of the buyers as well as of the export L/C opening Banks.

v) There should be sufficient time gap between arrival of fabrics, accessories and

validity of export L/C for completing production of RMG to ensue export shipment in

time to avoid stock-lot. Minimum 60 days gap is preferable.

59

vi) Effective follow-up, supervision and monitoring at the respective Branch should be

made. At least once a month the factory should be visited to evaluate performance & a

report be submitted.

vii) Adequate collateral securities should be insisted against Garments finance.

Additionally 2.50% to be deducted from each export bills to build up FDRs which

should be held under lien as security. The deduction to be made up to 20% of limits

sanctioned /outstanding whichever is higher.

viii) Pre-shipment Export Credit Guarantee from Sadharan Bima Corporation shall be a

general condition for Garments financing. For any deviation from this condition waiver

shall be obtained from EC/Board.

ix) Fire and RSD Insurance Policy shall be obtained on the book value of Plant &

Machinery and while on the raw materials, work-in-process and finished goods on it

should be obtained on stock declaration basis.

In order to make close & effective monitoring & supervision, it may be a good idea to have a

separate Garments Cell. The proposed Cell shall function from Credit Division, Head Office

and supervised by an SEO / FAVP.

Job description of Garments Cell shall be as under:

i) Receive proposals from the Branches for credit facilities to the Export Oriented

Garments industries for processing the same for sanction.

ii) Examine / scrutinize the papers / documents submitted by the Branches along with

the Credit proposals. They will specially verify the Bond License, Lease Agreement of

factory premises of the Garments unit. Fire and other Insurance Policy covering

Machinery and stocks.

iii) Critically appraise the proposals to assess viability of the project in consideration of

Technical, Marketing, Financial, management and Economical / Social aspects etc.

60

iv) Visit / inspect the factory premises of the Garments unit applying for credit facilities

for physical verification of the machinery and other equipments, floor space, location of

the factory etc.

v) Ascertain the production capacity and working capital requirement of the unit to

justify Branch recommendation for the facilities. Find out actual exports made by the

company during the last 3 years.

vi) Inspect /verify the proposed collateral securities and assess its value. Collect

Photographs of the security / collateral.

vii) Ascertain and assess past track records, experience, market reputation, credit

worthiness and Net worth of the customer.

viii) Supervise and monitor the production of the unit to ensure timely shipment / export of

garments by the Exporters so as to avoid any stock-lot. In this respect they will also

verify the registers maintained at the factories for recording actual daily production.

ix) Review the outstanding Accepted Bills to ensure settlement / payment of the bills on

maturity by the Branch.

x) Review Quota position of the Exporters.

xi) Check if segregation of stock imported for each factory is possible from the stock of

other garment industries owned by the same person /group.

xii) Evaluate the overall performance of the Customer for further financing decision

(enhancement / curtailment of limit) by the Bank.

xiii) Inspect the stock-lot from time to time and advised & guide the Exporters for earliest

export of the same towards adjustment of the forced loans created there against.

xiv) Prepare and submit Management Reports on Bank’s finance to Garments sector to the

Board / Executive Committee from time to time.

xv) Maintain relationship with BGMEA and Export Promotion Bureau to review the

Industry trend, Market position and other information. They will obtain Industry

Information, Market Information and policies of the Government which are likely to

influence the industry.

61

xvi) Garments Cell shall work under the administrative control of the In-charge, Credit

Division, Head Office, Dhaka.

xvii) The following checklist must be prepared by the RMG cell for each RMG Industry

financed / to be financed by our Bank:

Check List for the 100% Export Oriented Garment Industry:

i) Account Opening Stage :

a) Trade License;

b) Memorandum of Association;

c) Articles of Association;

d) Certificate of Incorporation;

e) Resolution of the Board of Directors.

ii) Admissibility for Export Business :

a) Trade License (Renewed);

b) Export License (Renewed);

c) IRC (Renewed);

d) Bonded Warehouse License (Renewed);

e) Tax Holiday Approval from NBR;

(if expiry may be noted for information)

f) BGMEA Membership (Renewed);

g) Fire Protection License from Civil Defense Authority (Renewed);

h) Fire Insurance of Factory stipulating the bank as Beneficiary (Renewed)

62

Insurance policies should be obtained for Fire, RSD & Flood for the Machinery

(Written Down Value) and for the Stock covering the BTB Limit on declaration

basis.

Insurance against Machinery :

Policy for Tk ...............................................

Validity .........................................................

Risk covered ................................. Name of Insurance Company ....................

Insurance against Stocks :

Policy for Tk ............................................... Validity .........................................................

Risk covered .................................. Name of Insurance Company .............................

i) TIN (updated);

j) EPB Registration (Renewed);

k) Textile Directorate / BOI Registration;

l) Confirmation of No Customs Demand (Verification of Pass Book to ascertain that there are no entry of Imported Goods which have not been exported in 2 years).

m) PDB / DESA / DESCO / REB sanction of electricity load.

n) Lease Agreement Validity if the Factory is on leasehold property.

iii) Functional / Financial Review :

a) List of Machinery (Category-wise);

b) Type of Export (Woven /Knit / etc);

c) Items of Export (Shirt, Jacket, Denim, etc);

d) Production Capacity as per Machinery;

e) Present outstanding liabilities:

63

Particulars Limit Outstanding Overdue (if any)

BTB L/C

ABP

Packing Credit

FDBP

FDBC

Others (Specify)

f) Export during the last 3 (three) years including current year;

g) Projected exports during the next year (12 months);

h) Production Booking Schedule in the Factory;

[No booking shall be beyond 6 (six) months]

i) Resume of the Proprietors / Directors regarding their background and experience

(in new case);

j) Net worth Statements of the Proprietor / Directors in the prescribed format;

k) Others Banks liability & performance if the party is migrating from other banks;

l) Updated Financial Statements (preferably for 3 years);

m) Number of workers & employees;

n) Number of Vehicles;

o) Monthly Expenses of Factory:

i) Salary :

ii) Wages :

iii) Electricity/Water/Gas :

iv) Rent :

v) Directors Remuneration :

vi) C & F Agents Bills :

vii) Others :

-------------------------------------------

64

Total :

p) List of ABPs as per following format:

ABP #

DateAmou

ntDue date

Export L/C #Amount & Expiry

date

BTB L/C # & Date

Progress of Export

/Production

q) List of Export Bills on Collection:

FDBP / FDBC # Date Amount & Expiry dt. Status of Payment

r) Quota position & verification of Allocation Letter;

s) Position of Stock-lot if any:

i) Stock-lot should be listed on the basis of Cut Fabrics, Uncut Fabrics

or Finished garment. Arrangement for export shall be reviewed.

ii) If the Stock-lot related to goods already exported but proceeds not

realized then following points shall be reviewed:

If the consignments released by the buyer then review the steps taken for

realization of proceeds.

If the goods not released by the buyer then review the arrangement to

protect the consignment at the foreign port at bonded warehouse and

arrangement to resell the goods.

65

It must be reviewed whether goods were exported under Freight Forwarder

Cargo Receipts. If so, actual Bill of Lading should be checked whether it is

drawn to the order of the Negotiating Bank.

It is mandatory to inform Bangladesh Bank & National Board of Revenue

(NBR) regarding failure of export & stock-lot.

Accepted Bills against stock-lot must be paid on maturity date by creating

forced loan. But this shall require post-facto approval from Head Office and

Bangladesh Bank.

t) In case garments units inducted from other banks, NOC shall be obtained from their

previous Banks within 6 (six) months.

u) Name of the Major Buyers.

v) Name of the Officer of The Premier Bank who will maintain relationship with the

Customer:

Name Experience / Background

66

6.8 Policy of Doctors’ Loan Scheme

a) Introduction:

We hope that providing loan under easy terms & conditions will certainly have an

important / positive effect on our medical services and will enhance the opportunity for

our doctors to establish themself as well as to contribute to make our medical services

modern enough compared to other countries. This will also enable us to establish

Banking Relationship with the Doctors Community who are rich & resourceful. We can

get good deposits and also develop profitable lending relationship with the Doctor’

community.

b) Purpose of Loan:

Purpose of this loan is to create opportunity for self-employment of the registered

MBBS /FCPS / Post Graduate doctors, medical Practitioners by financing them for the

following purposes:-

i) Up-to 100% Lease Finance for acquiring Medical Equipment.

ii) Up-to 100% Lease Finance for Motor Cars / Ambulances.

iii) Term Loan for rental advance / decoration & furnishing of chambers.

iv) Loan for purchasing of Apartment / Chamber up-to 50% of the cost.

c) Target Group:

Registered Doctors such as MBBS, FCPS & Post Graduates, Surgeon and Dentist, Eye

Specialists, Heart Specialists, Child Specialists as well as Hospitals, Clinics, Diagnostic

Centres owned & operated by registered Doctors.

67

d) Terms & Conditions:

The loan amount would be based on the needs / requirements of the borrower on case to

case basis. Borrower can avail one or more of the following:

i) Lease finance for medical equipments.

ii) Lease finance for motor vehicles / ambulances.

iii) Term loan for renting / decorating & furnishing chambers.

iv) Personal Loan under Consumer Credit Scheme.

v) Loan for purchasing apartment / medical chamber.

Lease may be allowed up-to 100% of acquisition

cost.

Term Loan up-to 80% of cost.

For purchase of Apartment / Chamber – loan up-to

50% of purchase price.

e) Security: (one or more of the following)

i) 3 (three) advance installments (Compulsory).

ii) Leased financed items ensured in the sole name of the Bank (Compulsory).

iii) Personal guarantee of the Borrower(s) & their spouse(s) (Compulsory).

iv) Third Party guarantees.

v) For purchase of Apartment / Chamber - loan to be secured by Registered Mortgage

of the Apartment / Chamber (Compulsory).

68

vi) Credit Insurance.

vii) Collaterals in the form of mortgage.

viii) Lien on deposits / other financial obligations.

f) Repayment period:

i) Repayment term will be up-to 4 (four) years for Lease / Loan.

ii) Apartment / Chamber loans may extend up-to 10 (ten) years.

iii) Payments will be made in equal monthly installments (EMI).

iv) Early repayment may be allowed without any penal interest / charges.

g) Eligible Borrower:

Initially the following categories of people shall be eligible to apply for availing loan

facilities under this product:

i) Registered Medical Practitioners / Doctors such as MBBS, FCPS, Eye Specialists,

Heart Specialists, Child Specialists, Surgeon, Dentist etc should have at least 5 years

experience.

ii) Hospital, Clinic, Diagnostic Centers owned & operated by registered Doctors.

h) Interest Rate & Charges:

i) Interest Rate @ 15% p.a. with monthly rest.

ii) Application form will cost Tk 100.00.

iii) Loan Processing fee at 0.50% of the loan amount payable along with the submission

of the Application Form. In the event of non-approval, the loan processing fee will

be refunded.

69

iv) Other charges for Lease finance shall apply such as:

Service Charge - 1.00%

Risk Fund - 1.00%

Transfer fee - 1.00%

v) Consumer Credit facilities shall be guided by existing policy approved by Board in

its 345th EC Meeting held on 07.04.2003.

i) Rebate:

If any loan is repaid strictly as per sanctioned terms and conditions & within the due date

without any rescheduling, a rebate equivalent to 1% (one percent) of the loan will be

given to the Borrower.

j) Review of Credit facility:

As at the end of March, June, September & December of every year, the Manager shall

submit branch wise information about the relationships established with Doctors in the

following form:

(Tk in Lac)

Name &

Address

of the

Doctor

Nature

of Credit

facilities

Limit Outstand

ing

Overdu

e (if

any)

Nature

& value

of

security

Amount

of

Deposits

received

Remark

s

70

6.9 Policy of Consumer Credit Scheme (CCS)

a) Objectives:

i) To extend credit facility to the limited income group.

ii) To develop living standard of middle and upper middle class people.

iii) To participate in the socio-economic development of the country.

b) Assigning Officer for CCS:

Every Branch will assign at least 1 (one) officer for CCS on full time basis. The number

of officers may be more than 1 (one) in case of need.

c) Target Setting:

The Head Office will set target for both disbursement and recovery of loans under CCS

for individual Branch in every year.

d) Eligibility of the Borrowers:

i) Service Holder :

Officer / Executives from following organizations having confirmed / permanent job

and getting the salary as mentioned below with minimum length of service of 2 (two)

years within the age between 20-55 years will be eligible for availing loans under

Consumer Credit Scheme (CCS):

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Officers / Executives of any Scheduled Bank and getting minimum

monthly gross salary of Tk 12,000.00.

Officers / Executives of any other financial institutions and getting

minimum monthly gross salary of Tk 15,000.00.

Officers / Executives of any Multinational Company getting minimum


Officers / Executives of any Public Limited Company and getting

minimum monthly gross salary of Tk 20,000.00.

Officers of Private Limited Company having corporate structure and

getting minimum monthly gross salary of Tk 30,000.00.

Officers of any Government Organization and getting minimum monthly

gross salary of Tk 8,000.00 per month.

Teachers of Universities, Colleges and Schools and getting minimum


Officers of Semi Government Organizations and Autonomous Bodies and

getting monthly gross minimum salary of Tk 10,000.00.

ii) Self Employed Person:

The self employed persons, such as, Doctors, Chartered Accountants, Lawyers or

who have their own Business by any nature having minimum income of Tk

35,000.00 per month may be eligible to get loans under CCS. The length of

profession shall not be less than three years. (In this case he / she will have to submit

supporting papers of profession for last three years).

72

iii) For defense service personnel CCS may be provided, in addition to the conditions

and guidelines of this circular, subject to fulfilling the following conditions as per

circular no. 3204/R/AG/(PS-1) dated 3rd March, 1999 and any subsequent

amendments thereto issued by army headquarter, Adjutant General Branch, Dhaka

Cantonment:

Employers Certificate should be obtained only form the Commanding

Officer of Borrower's unit.

In case of providing credit facility to a soldier, the guarantor should not be

below the rank of Junior Commission Officer.

The respective unit of the borrower will provide a guarantee certificate that

the borrower will pay the monthly installment in due course.

e) Non-Eligibility:

Proprietorship firm, Limited Companies, Trusts, Clubs, Association, Other institution,

Minors (singly or jointly with any adult person) are not eligible for consumer credit.

f) Products / Service to be financed:

i) Domestic Appliances: Air Conditioner, Refrigerator, Deep Freezers, Washing

Machine, Mobile Phone, Cooking Range, Micro-Wave, Furniture, Sewing Machine,

other domestic appliances (we will not finance against photocopier, as Photocopier is

not a consumer item).

ii) Entertainment items: Television, VCD, VCP, Music System, Sound System, Video

Camera with accessories etc.

iii) Vehicles: Car, Microbus, Pick-up, Jeep etc. Such vehicles should be new or

reconditioned (not second hand vehicles) and must remain unregistered at the time of

purchase.

iv) Intangibles: Medical expenses, holidays, marriage etc.

73

v) Others: Home repair, redecoration, and renovation.

g) Application Form: The client should apply for loan under consumer credit in the

Bank's prescribed form Tk 20.00 to be realized for each application form.

h) Down Payment:

In respect loan against Vehicles, minimum 30% of quoted price of the vehicle will be

collected as down payment. We may also accept en-cashable security ( e.g. FDR etc).

In respect of loan against other than Vehicles, the customers will deposit 1 (one)

advance installment in Bank's Sundry Deposit Accounts at the time of disbursement

which will be transferred to the respective CCS loan account for full and final

settlement of the account.

i) Loan Limit: The loan limit under CCS has distinguished as follows:

i) Other than Car, Microbus, Pick-up & Jeep the maximum Loan Limit is Tk 1.00 Lac

only but the amount shall be fixed in such a manner that the monthly installment of

the loan will not be more than 25% of his / her monthly income.

ii) For Car, Microbus, Pick-up & Jeep:

Maximum limit Tk 10.00 Lac for new Car;

Maximum limit Tk 7.00 Lac for reconditioned Car;

Maximum limit Tk 4.00 Lac for Microbus and

Maximum limit Tk 3.00 Lac for Pick-up.

Any exception of the above have to be approved from the EC of the Board of Directors of

the Bank.

j) Delegation of sanctioning power to the Branch:

74

The Branch will exercise delegation for sanctioning CCS loan (other than Vehicle) as per

following schedule through Branch Management Committee:

Branch NameDelegation Power

(up-to Tk)Branch Name

Delegation Power

(up-to Tk)

Gulshan 1.00 Lac Uttara 1.00 Lac

Dilkusha 1.00 Lac Khulna 1.00 Lac

Imamgonj 1.00 Lac Savar 1.00 Lac

Kawranbazar 1.00 Lac Mohakhali 1.00 Lac

Agrabad 1.00 Lac Ashugonj 0.50 Lac

Motijheel 1.00 Lac Meghnaghat 0.50 Lac

Banani 1.00 Lac Elephant Road Nil

Dhanmondi 1.00 Lac Sylhet Nil

Khatungonj 1.00 Lac Barisal Nil

In case of loan against vehicles the Branches shall forward the application with the

Branch recommendation to the Credit Division, Head Office for approval.

All Branches shall constitute Branch Management Committee with the following

Executives / Officers:

i) Branch Manager : Chairman

ii) Second Officer : Member

iii) Credit In-Charge : Member-Secretary

iv) CCS Officer : Member-Assistant Secretary

k) Necessary Papers & Loan Approval

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The client shall apply as per prescribed Form along with the copy of the following papers

for approval:

i) Application Form duly filled in and verified by the Branch officials.

ii) Price quotation / indent of the item to be purchased.

iii) Price quotation of the item to be purchased or service to be availed such as home

repair, redecoration etc.

iv) Cost estimation for Intangibles (medical expenses, holidays, marriage).

v) One copy of attested photograph of the applicant (one copy should be retained with

the Branch).

vi) Guarantor's information in the prescribed form.

vii) Borrower's net worth statement.

viii) In respect of Service Holder:

Salary certificates from the employer;

Letter of surety / assurance (where applicable);

Last 3 (three) month's Salary Account statement.

ix) In respect of Business Persons / self-employed Persons:

Last 6 (six) month's personal Account statements;

Trade License / Letter of Incorporation;

TIN Certificate;

Tax Return (last three years).

Note: All favorable considerations of an applicant and respective guarantors to sanction /

forward any CCS loan facility must be mentioned and recorded in the loan proposal.

l) Disbursement of Loan:

The loan amount will be disbursed through Pay Order directly to the supplier of the

products except for Intangibles, Home Repair, Redecoration and Renovation, for which

loan amount will be directly credited to client's A/C.

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m) Interest: As per loan period the following interest rate to be imputed in computer at

the time of opening a CCS loan account for interest rate 10% flat:

Declared Flat Rate Loan PeriodRate to be imputed in Computer at

the time of opening a CCS Loan

10%

1 year, 18.00%

2 years 18.20%

3 years 18.00%

4 years 17.60%

5 years 17.30%

n) Fees: Service charge 2% (flat) to be received at front end.

o) Repayment Arrangement:

i) Period of Loan:

The consumer loan (other than Vehicle) will be repaid in maximum 24

equal monthly installments. 36 or 48 installments will be allowed in case the loan

amount in over Tk 1.00 Lac.

The loan amount against new Vehicle will be repaid in maximum 60 equal

monthly installments and loan amount against reconditioned vehicle will be

repaid in maximum 48 equal monthly installments (here Vehicle not include

Motor Cycle).

ii) The borrower will have to submit post-dated A/C payee cheques ( one for each

installment) in favour of the The Premier Bank Limited prior to the disbursement of

the loan. The borrower shall keep sufficient fund in his /her account for the purpose.

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The rest outstanding, if any, shall be adjusted by the borrower along with the last

installment. As such, the last cheque shall be blank.

iii) The installment shall be payable within the first week of every month starting from

the following month of disbursement of loan.

iv) We may serve Legal Notice (by Junior Lawyers) to the defaulting customers, who

are not coming forward to settle their Overdue Accounts after vigorous persuasion

and the Branches may assign Lawyers for serving Legal Notice (the cost of serving

Legal Notice will not be more than Tk 300.00 for each, and the payment of serving

Legal Notice will be made by debiting Suspense Account by the concerned Branch).

p) Securities and Documentation:

i) For financing consumer durable and vehicles like Air Conditioner, Refrigerator,

Deep Freezers, Washing Machine, Mobile Phone, Cooking Range, Micro-Wave,

Furniture, Sewing Machine, Television, VCD, VCP, Music System, Sound System,

Video Camera with Accessories, Personal Computer, Photocopier, IPS / UPS small

non-commercial Generator, Car / Microbus, Pick-up & Jeeps, hypothecation of the

purchased item shall be the primary security against the loan under the scheme.

ii) Loans for Medical expenses, Holidays, Marriage, Home repair, Redecoration, and

Renovation will virtually be clean basis. Bank Officers may obtain collateral by way

of pledge / lien on financial obligations such as ICB unit certificates, WEDB, FDRs

etc. The receipt under MIS, MSS, ESS etc issued by The Premier Bank Limited is

also acceptable. In these cases the loan amount should not be exceed 90% value of

financial obligation without equity participation.

If the loan facility is covered by 100% deposit of our Bank in the form of FDR,

MSS, MIS, or Equity under lien, third party guarantee may not be taken. In this case

Letter of Lien & Letter of Authority for en-cashment may be obtained.

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iii) In case of loan against vehicles registration of the vehicle shall be made in the Bank's

name and Comprehensive Insurance covering all possible risks shall have to be

obtained by the borrower at his / her cost who will also ensure timely renewal of

insurance and other required papers. Photocopy of the following paper should also

be obtained.

Registration certificate (Blue Book) showing Bank's interest already noted on the

certificate so that the vehicle can not be sold without prior approval of the Bank.

iv) Guarantor:

v) If the customer is a Government Service Holder or a Bank employee, we may take 1

(one) personal guarantee and in case of other customer, we may take 2 (two)

personal guarantee.

vi) Guarantor's Criteria: A Guarantor must be financially sound and have market

reputation and shall be acceptable to the Bank. The Branch Manage shall satisfy that

in the event of non payment by the borrower, he will stand up and meet his

obligation to repay the loan.

vii) Prior to disbursement of loan, the following charge documents must be completed at

borrower's cost:

D.P. Note : by affixing revenue stamp

of Tk 20.00;

Letter of Continuity : stamp not necessary;

Letter of Disbursement : stamp not necessary;

Letter of Revival : stamp not necessary;

Letter of Hypothecation : by affixing adhesive stamp of Tk

150.00;

Personal Guarantee : by affixing adhesive stamp of Tk

150.00;

(joint / several)

Loan Agreement : by affixing adhesive stamp of Tk

150.00;

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under CCS

Letter of Authority : stamp not necessary;

viii)After purchasing the item, Money Receipt & Delivery Challan there against should

be obtained.

q) Other Terms and Conditions:

i) The borrower shall use the product for his personal use only and shall not lend the

item or transfer the ownership / possession to any third person before the loan is

adjusted or without prior written permission from the Bank.

ii) The borrower shall maintain the article properly and shall be responsible for loss /

damage to it during the period of the loan. He /she shall pay all the Bank's dues in

full, in case the article is fully damaged, lost, or become unusable due to negligence,

carelessness, or inefficient handling.

iii) The borrower shall keep the articles available for surprise inspection by any

authorized representative of the Bank.

iv) The borrower shall immediately inform the Bank of any changes in address or

profession related to himself / herself and his / her guarantor.

v) The Borrower shall obtain comprehensive insurance policy for car loan at his / her

cost in the name of the Bank and bear all other expenses for registration and other

purposes as and when required.

vi) The borrower will submit a declaration as per prescribed format authorizing his / her

monthly salary in case of non payment by the borrower till final adjustment of the

loan.

vii) The Bank reserves the right to change the rate of interest from time to time.

r) Monitoring:

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As the credit under CCS is fully supervisory and the success of the scheme depends on

proper and persistent supervision, follow-up, persuasion & monitoring, so the Branches

need to follow-up & monitor vigorously the A/C's to ensure the expected recovery.

The Branch shall send "monthly statement of loan under Consumer Credit Scheme" to

Head Office Credit Division as per prescribed format.

The management may change rate of interest and fees from time to time under this

scheme. In this respect a condition to be incorporated in the sanction letter issued to the

borrower /client.

s) Condition of CCS (Staff):

i) Eligibility: Only the confirmed employees (Junior Officer and above Officer /

Executives) of the Bank will be eligible for the CCS (Staff) loan facility.

ii) Loan Limit:

Designation wise maximum loan limit will be as follows:

- From Junior Officer and above : Tk 1.50 Lac

- Other Officer including Teller : Tk 0.50 Lac

- Sub Staff (Non Officer) : Tk 0.25 Lac

However total monthly deduction from Salary of an employee including

CCS loan installment shall not exceed 50% of Gross salary.

An employee can avail fresh CCS loan facility after adjustment of his

previous CCS loan liabilities.

Educational expenses of any family member of an employee may be

included in the purpose of CCS (Staff) Loan.

Monthly other regular income of an employee may be considered within

the gross monthly family income on a case to case basis if necessary at the time

of fixing the loan limit.

iii) The amount of loan will be adjusted maximum in 48 (forty-eight) equal monthly

installments.

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iv) Once a loan is fully or partly adjusted, concerned Executive / Officer may avail loan

again to buy similar or other item.

v) Since the Borrowers are Bank's own Executives / Officers, they will be exempted

from the following charges:

- Down Payment (Advance deposit of installment/Equity);

- Risk Fund;

- Service Charge

vi) The monthly installments for availing the loan will be deducted directly from the

salary of the concerned Executive / Officer.

vii) As the borrowers are Bank's own Executives / Officers and the installments will be

deducted directly from the salary, so they will exempted from third party's Personal

Guarantee.

viii) Interest on loan for Executives /Officers under CCS will be charged @ 12% P.A.

ix) The Loans of Executives / Officers under the scheme will be sanctioned by Credit

Division, Head Office.

x) The Divisional Heads of Head Office and Branch managers will forward loan

application of the Executives / Officers of their respective Division / Branch to

Credit Division, Head Office duly recommended in the prescribed application format

for approval.

xi) After approval a sanction letter will be issued in favor of the concerned Executive /

Officer, Copy of which will be given to Divisional Head of Head Office / Branch

Manager, HRD, FAD for necessary action at their end.

xii) After getting the approval the loan will be disbursed directly to the concerned

Executive's /Officer's SB/CD/A/c.

xiii) Other terms and condition will remain same as the policy of CCS for the customer

rather than Bank employees.

t) Conclusion:

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PBL is confident that the Consumer Credit Scheme will enable the Branch to face the

competition from commercial banks both local and foreign. The scheme will also stop

diversion of our deposit and loan to other banks offering same scheme and will create a wider

customer base for the Bank. We would however, welcome any suggestion from the Branch to

implement the scheme smoothly and properly.

6.10 Policy of Credit Facility secured by Deposit/Cash Collateral (SOD)

Terms & Conditions:

i) The Credit facility must be 100% covered by Deposit in our Bank under lien. 10%

margin shall be retained in respect of funded facility i.e. Loans & Advances shall not

exceed 90% of the deposits. In case of non-funded facility such as L/C or B/G, 100%

exposure may be taken.

ii) Interest differential between the Loans & Advances and deposits held with our

Bank shall be 3% P.A.

iii) Commission / Charges for non-funded facility may be reduced by 25%.

iv) Proper Letter of Lien and other charge documents shall be obtained. In case the

deposits are held in the name of the Third Party, Personal Guarantee of the Depositor

will be obtained.

v) The facility shall be approved by the Branch Management Committee and they

shall submit a monthly statement of all such credit facility extended in the following

form which shall be signed by all the members of the Branch Management Committee:

Name of

the

Borrower

Sanctione

d limit

Date of

Disburseme

nt

Expir

y Date

Interest

Rate

Interest rate

on DepositSecurity

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Photocopy of Deposit Receipt and Letter of Lien shall be attached with the statement.

Head Office Credit Division will review the statement and bring any irregularity to the attention of Management Committee of the Bank for further action including repo.

6.11 Policy of Overdraft Receivable

For quick and easy identification of various exposure of the Bank by the name of the

Accounting Head in our Statement of Affairs named as "Overdraft Receivable" under Loans

& Advances A/C.

Rules of Operations:

i) This overdraft account shall be for Working Capital financing against customers

Receivables and book Debts.

ii) Executive Committee shall approve this limit in favour of each customer which

shall be communicated to Branch by Head Office. The limit shall be approved against

outstanding Receivables which are not more than 90 days past due. A minimum margin

of 25% shall be maintained.

iii) Each disbursement shall be approved by the Branch Manager.

iv) Branch Manager shall personally supervise adjustment of each drawing.

v) Monitoring & Inspection Division of Head Office shall review the transactions in

these accounts while they inspect the Branch.

vi) Branch Manager must obtain Statement of Receivables at the time of each

drawing and on monthly basis till full adjustment.

vii) Statement of Bills Receivable as per prescribed format shall be submitted at the

time of first disbursement.

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viii) The customer must undertake to deposit all his collections to their account with

our Bank.

6.12 Credit Policy Exception

Policy exceptions are required when:

a) The overall amount of credit in any one name or group exceeds 50% (Fund based 25%

+ Non fund based 25%) of our bank’s capital resources.

b) Entering in to under writing commitments; (other than syndicated loans).

c) Financing arms or other military equipment.

d) Extending credit direct to a holding company or based on the guarantee of a holding

company that does not have substantial operating assets and revenues from diversified

sources.

e) We are in an inferior position as compared to other bank lenders with comparable

facilities.

f) Final payment date for commercial loans is over five years from date of customers’

acceptance of commitment.

g) Term loan commitments expire beyond six months from the date of credit approval.

h) The first amortizing payment for commercial loans occurs later than twelve months from

the date of the final draw down.

i) Total amortizing payments for commercial loans during the final year exceed 30% of the

original amount of the loan.

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CHAPTER- SEVEN

SWOT ANALYSIS OF PBL

7.1 SWOT Analysis:

Not surprisingly in the competitive arena of marketing era SWOT analysis is a must based on

Product, Price and Promotion of a financial institute like private bank. From the SWOT

analysis we can figure out ongoing scenario of the bank. So to have a better view of the

present banking practices of Premier Bank Limited. I did the SOWT analysis.

7.1.1 Strength:

Usage of faster PC Bank Software Efficient administration Cooperation with each other Fewer default loan Membership with SWIFT Good banker customer relationship Strong Financial Position Energetic as well as smart workforce First position in CAMEL rating

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Sound working environment

7.1.2 Weakness:

Lots of inexpert and laggard assistant officer Reluctance to ad campaign Existing manual voucher Shortage of branch Dominating nature of senior officer Entrance of new privet bank Working pressure is high and long time duty of the officers

7.1.3 Opportunity:

Huge business area Introducing ATM Card Growth of sales volume Introducing any branch banking through online.

7.1.4 Threats:

Existing card service of SCB Different service of FCB’s (Phone Banking and home banking) Different classical service of foreign banks Entrance of new banks Political unrest

7.2 Future Prospects of PBL

As they are on the threshold of increasing free market competition there

ability and loyalty to their service must be augmented and cater to their

need more competently. A large number of commercial banks are already

in the market to acquire business. They have nevertheless secured their

position in the overall financial arena with diversified opportunities but

with extensive competition. This has been possible through constant

efforts of very skilled and result-driven workgroups.

Within short time period prime bank is going to open its more Islamic

banking branches to attract the depositors from the Islamic mentality

person. This branch will be operated by Islamic financial system. Beside

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this more new branches will be opened as part of etension of banking

service to all.

7.3 Suggestion for uplift of Premier Bank Ltd:

With a view to ensuring the vision of Premier Bank Ltd. Some initiatives should be executed

on the emergency basis like:

Sending the assistant officer to BIBM for better view over pragmatic knowledge they

know what they are doing but they don’t know how and why they are adopting

different banking practices.

PBL should establish own Training Institution.

To have a strong marketing needed sales executive.

Should maintain proper record keeping system to provide quick service.

Most of the officers lack in communication skill they should be trained up.

When new coming document is come in the morning, quickly forward to the

respective officer for accomplish the job.

Try to hear about the problem of officer and employee of the bank and solve to

motivate them.

Try to hear about the new concept development from the lower level also.

Recruit the employee from the commerce background.

Open a complain and new concept box for the customers.

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CHAPTER- EIGHT

CONCLUSION

8.0 Conclusion

Today’s business is very competitive and complex. To survive in the relate sector the

organization need competitive people and has to take some effective policy. Every country

must have a plan for important role in economic activities. Bangladesh is no exception of

that. Commercial Banks’ financial development and economic developments are closely

related. That’s why the private commercial banks; are playing significant role in this regard.

Premier Bank Ltd is one of the fastest growing banks in respect of service, innovative

products and strength among the private commercial banks. Sometimes a bank needs some

additional capital to sustain their profitable growth in a steady way. Premier Bank had chosen

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the most efficient and less risky way of increase capital by floating its shares in the capital

market through Initial Public Offering (IPO)

After entering in the capital market PBL is trying to maximize the shareholders value in the

long run as well as ensure the sound return on investment.

CHAPTER- NINE

RECOMMENDATIONS

9.0 Recommendations

With a view to ensure exciting services and opening up the new window of progression as

well as uplift, we should like to present the Premier Bank Ltd. with several recommendations

like:

General Banking:

Formalities in getting ATM card should be simple.

Introducing the “Customer Day” or “Care U” week and new advertisement on

different TV channels.

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Launching one stop service cell.

More skilled persons are needed for reducing busyness.

Should have separate ATM booth.

Two branches should be under on line banking.

Credit Management:

Based on the evaluation of different aspects of the credit process of Premier Bank, the

following recommendations have been made:

In the face of competitive and borrower dominated credit scenario Premier Bank must

come up with innovative loan products to meet up the demand of time. In this

connection PBL can focus on some more loan products like:

Leasing

Apartment loan

Marriage loan and

Education loan.

To combat the problem of mobilizing deposit in the form of credit, Premier bank

should focus on intensive marketing effort.

Entrepreneurship lending should be given due emphasis.

As borrower selection is the key to successful lending, Premier Bank should focus on

the selection of true borrower. But at the same time it must be taken into account that

right borrower selection does not mean that PBL has to adopt conservative lending

policy but rather it means that compliance with the KYC or Know Your Customer to

ascertain the true purpose of the loan.

Care should also be taken so that good borrowers are not discarded due to strict

adherence to the lending policy.

At the branch level credit department must be adequately capable of collecting the

correct and relevant information and analyzing the financial statements quickly and

precisely.

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Credit committees at all levels must work in co-ordination with each other for quick

approval of loans and to reduce the loan processing cost.

To expedite the lending process, board credit committee meeting should be held twice a

month instead of once a month.

The bank should benchmark the monitoring techniques practiced by the successful and

established banks in Bangladesh.

It should take the counseling service from the experienced expatriate to further improve

the monitoring techniques.

In case of mortgage, care must be taken to accept collateral on second charge.

Reporting of all loans should be periodically made to Bangladesh Bank

Premier Bank should set up a separate loan monitoring cell, which will be responsible

for monitoring its total loan portfolio with special care to the problem loan.

REFERENCES & Bibliography

References

Premier Bank Ltd., Annual Report; 2004, 2005, 2006 , 2007 & 2008

Bangladesh Bank, BRPD Circular 09; August 20,2005, BRPD Circular 02;

February 02, 2005, BRPD Circular 09; May 14, 2001

Chowdhury, L. R., A Text Book on Banker’s Advances; 2nd Edition; Paradise Printing;

2002

BIBM Abstracts

Premier Bank Ltd., Head Office Circulars; 2006, 2007

Premier Bank Ltd., Brochures of Loans and Advances; 2007

http//www.Premierbankltd.com.

Bibliography

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Chowdhury, L.R.A text book on “Foreign Exchange, Fair Corporation”, Dhaka,

2000.

Gordon, E. & Natarajan K. “Banking Theory, Law & Practices”, Himalaya

publishing house, Mumbai, 1996.

Ministry of commerce, Import policy order 2005-06, Government of Bangladesh,

2005, 2006.

K.K. Das- Foreign Trade & Foreign Exchange.

Financial institutions and markets.5th Edition.Created by Rezwan n' NituBy Jeff

Madura.Prof. of Florida Atlantic University,USA.

Economic.By Simulation.Prof. of Clliorfonia state University, USA.

Business 21st century. 13 th Edition. By Skinner.Prof. of Clliorfonia state University,

USA.

Money & Banking By T.T Shethy.Prof. of New Delli University, India.

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Body Part@Premier Bank

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