The Millennium University
Knowledge shall make you Free ASSIGNMENT ON COMMERCIAL BANK MANAGEMENT TOPIC NAME: THE BASIC BANK
SUBMITTED TO: NASRIN AKHTER LECTURER, DEPARTMENT OF BUSINESS ADMINISTRATION
SUBMITTED BY: FARIHA TASNIM MOU ID NO: BATCH: 109 BBA 00 39 12TH
DATE OF SUBMISSION: 15TH SEPTEMBER, 2012
Introduction
BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Compani
1988, started its operations from the 21st of January, 1989. It is governed by the Banking Companies Act 1991. The makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs).
joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) w
The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took
bank on 4th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a privat
Functions
The Bank Offers:
Term loans to industries especially to small-scale enterprises.
Full-fledged commercial banking service including collection of deposit, short term trade finance, working manufacturing units and financing and facilitating international trade.
Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfull
Micro credit to the urban poor through linkage with Non- Government Organizations (NGOs) with a view formal financial market for the mobilization of resources.
In order to perform the above tasks, BASIC Bank works closely with its clients, the regulatory authorities, the sh financial institutions.
Corporate Strategy
Financing establishment of small units of industries and business and
Small Balance Sheet size composed of quality assets.
Steady and sustainable growth. Investment in a cautious way. Adoption of new banking technology.
To employ funds for profitable purposes in various fields with special emphasis on small scale industries. To undertake project promotion on identify profitable areas of investment. To search for newer avenues for investment and develop new products to suit such needs. To establish linkage with other institutions which are engaged in financing micro enterprises
To cooperate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI s
Resources:
BASIC Bank Limited is well prepared to and capable of meeting the demand for a broad range of banking services. human and physical, to provide the customers with the
Physical and technological resources:
A great deal of investment for developing the physical resource base of the Bank has been made. The Bank has its
and commercial hubs of Bangladesh in order to cater to the needs of industry and trade. At present, there are f throughout Bangladesh. Major features of these branches are:
Fully computerized accounts maintenance. Well decorated air conditioned facilities.
A fully operational computer network which is currently being implemented. The work of Local Area Netwo
(WAN) installation having reliable and secured communication between the branches and the Head Office is Banking and ATM Services.
Money counting machine for making cash transactions easy and prompt.
Sixteen branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction o
Human resources
BASIC Bank has a well-diversified pool of human resources, which entails personnel with high academic bac
demographic characteristic. Most employees are comparatively young in age yet mature in experience. As at the end was
Training:
Intensive training program, on a regular basis, is being imparted to employees of all levels to meet the challenges in
employees to adapt the changes and new working conditions. Bank believes that human resource is the main driving
are the key sources for the success in todays banking business. Keeping this view in mind and recognizing the impo
excellence, BASIC Bank established its own training cell in 2005 with modern facilities. In 2011 the cell arranged 29
training to as many as 608 employees of the bank. Bank also sends its employees to BIBM and other local and foreig
enhancing and sharpening their knowledge base. During the year 2011 a total of 114 employees of the Bank were als fields in BIBM and other institutions.
Recruitment of New Officers :
The Bank follows a strict recruitment policy in order to ensure that only the best candidates are recruited. For fresh
test and viva voce are being conducted through the renowned institutions like IBA, BIBM, BIM etc. The Bank, so entry-level management staff, all of whom have got excellent academic background. In 2011 the bank recruited 125 at various grades from different academic background.
CSR Activities
The concept of Corporate Social Responsibility (CSR) was considered in the early part of the 20th century but it received enormous impetus in the early 1950s. Primarily CSR starts with the consideration of social implications by anybody corporate which is ultimately reflected through its initiatives towards betterment of the disadvantaged peoples of a society. As a stakeholder of the society, the Bank is keen to augment CSR activities gradually in the days to come. As such in broadly defining, CSR refers to the voluntary role of business towards building a better society and cleaner environment beyond its financial commitments and regulatory obligations.
Considering importance of CSR, Bangladesh Bank since June 2008 officially started encouraging towards mainstreaming CSR in banks and financial institutions of Bangladesh. This bank has taken the following services under its CSR activities:
Poverty Alleviation:
It is globally accepted that the Non-Government Organizations (NGOs) have been performing a laudable role in poverty alleviation across the globe, especially in Bangladesh. With a view to widen the access to finance by the poor and ultra poor community, BASIC Bank Limited has been financing NGOs for quite since 1995 at privileged rates of interest (between 7.00% and 13.00%). So far we have financed 65 NGOs of various categories and capacities from small to large and also from local/regional to national/international. Such activities also contributed to generation of income and employment as well.
Women Empowerment:
As half of our population is woman, a sustainable national progress cant be attained, if women are left aside. Therefore, they should progressively be brought to the mainstream of our development activities. Considering this reality the bank has been mobilizing credit facilities to the capable women entrepreneurs at a reduced rate of interest. So far we have financed several woman entrepreneurs and it will gain due momentum in the days to come.
Concern for the Environment:
Today our planet is exposed to a severe environmental catastrophe than ever before. As a humble effort to reduce environmental pollution, we have financed 26 CNG refueling stations. Again, most of our office vehicles have already been converted to CNG fueling system. Use of CNG fuel also helps save hard earned foreign currency.
Conclusion:
It is very clear from the discussion that The BASIC Bank emphasizes to support the welfare of the small scale industries (SSI). It also performs commercial banking services including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade. It has adopted various strategies to develop the performance of its activities. It is also concerned about its responsibilities to the society. For that it has taken various steps.