INTERNSHIP REPORT ON BRAC BANK LIMITED, Assignments of Business Systems

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INTERNSHIP REPORT

ON BRAC BANK LIMITED

PREPARED BY MD. TANVIR HASAN PRINCE

INTERNSHIP TITLE

“INTERNSHIP REPORT ON “TARA” SEGMENT OF BRAC BANK LIMITED”

Prepared by MD. TANVIR HASAN PRINCE ID- 14104183 BRAC Business School Guided by MS. FABIHA ENAM ANOWAR JAHID Senior Lecturer Unit Head BRAC Business School Deposit Division BRAC University BRAC Bank Limited Date of Submission: 17th^ December,

LETTER OF ENDORESEMENT

This is to clarify that MD. TANVIR HASAN PRINCE a student of BRAC Business School has successfully complete his internship program entitled “A Study about Impact of BRAC Bank Limited on Women Empowerment” at BRAC Bank Limited under my effective supervision as the partial completion for the program of BBA degree. He has established his process according to my guideline and active participation. He tried his level best to make this report informative and efficacious. I hope his hard work will assist hm in pursuing a great career path in future Signature ……………………………… MS. FABIHA ENAM Senior Lectures BRAC Business School BRAC University

ACKNOWLEDGEMENT

The fruitful achievement of this Internship Report is the result of the commitment and inclusion of various individuals, particularly the individuals who set aside the opportunity to share their insightful direction and recommendations to enhance the report. There are some exceptional individuals who can't go without say. Above all else, I might want to thank our noteworthy scholastic director MS. FABIHA ENAM Senior Lecturer, BRAC Business School, BRAC University. I am grateful to her for her constant help and supervision, proposals and giving me important data that was especially required for the fulfillment of this report. Then, I would like to express my sincere gratitude to , MR. ANOWAR JAHID , unit head of deposit division and MR. RUBLE KANTI BARUA , associate manager of deposit division for overseeing me throughout my time as an intern of Account Services department. I would also like to express my gratitude to PAMELA SHORMISTA BAIN , associate manager for encouraging me to learn new things about the account service department. At last my genuine appreciation goes to my family, companions, colleagues and partners who made a significant contribution on preparing me for the corporate world which I required after graduation.

Content 1 2 3 3 3 Literature review 4 5 6 7 7 8 8 9 10 11 11 12 13 16 17 17 18 20 23

25 26 27 29 30 30 32

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1.1 Introduction

Bangladesh is a fast-growing nation. Which has maintained the GDP growth of more than 7% over the last five years and expected to do so in the future as well. Some estimate that, in the year 2040 it will be considered as a developed nation. A nation cannot be developed without using its resources properly. Most important resource for a country is its human resource. Unfortunately, due to religious and social stigma, Bangladesh has failed to use its resources to the full extent. A research by World Bank’s Gender Mainstreaming strategy launched in 2001. This research showed that societies that discriminates between gender are less economically advanced than societies value male and female equally (World Bank 2001). Women in general was pushed back in the past to enter in the economic market. Which is very sad for a developing country; fortunately, things have started to change and now women are entering more in the workforce as employees and also as business person. This means, they need for women centric bank is eminent and much needed in this context. Women tend to save more than their male counterparts and they need a financial product that will give them more incentives to save more and work more. In addition to that, women are now becoming entrepreneurs and they are now opening up new business using social medias and different sources. These women need financial backing as because of social stigma women tend to get less preference than their male counterparts. This means they will have a hard time following their passion and dreams, if that happens then our economy will not improve. To mitigate the issue, BRAC Bank Limited has introduced TARA, a financial service that mainly focuses on women and they will get various benefits by using this service, for example- more interest rate while depositing and more time, less interest while taking loan also their will be financial consulting to improve their business conditions. TARA service is getting highly popular both in the retail and the SME sector because of its epically targeted customers segment. This segment will also encourage women and girls from all ages to break the so-called barriers and step on the light of freedom and prosperity.

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1.2 Objectives

This report will work on specific objective. These objectives are given below:

1. To give an overview of the operations of BRAC Bank Limited.
2. Descriptions about socio-cultural standing of women
3. Gaining knowing about different services about the banking sector
4. Problems BRAC Bank is facing now
5. Probable recommendations to overcome those problem

1.3 Scopes of the report

The scopes of the report are given below:

1. It will help to get complete overview of BRAC Bank Limited and the economy of Bangladesh
2. Contribution of Women in the economy of Bangladesh
3. In depth knowledge about different services in Retail and Corporate banking
4. Role of banking system to bring equality

1.4 Methodology

Both primary and secondary sources were used to produce this informative report. Primary Sources During my internship period I was assigned in the account services department. All the account related issues all over Bangladesh gets solved in that department. I saw different types of accounts and the income level of those accounts. I observed which volume of the accounts were opening most. I saw the increase of TARA account over the years and how it was viewed in the entire department. I interview people related with these processes. I was assigned in the ASHKONA branch for a period of one week during my time there I talked with clients and customers why they were opening their particular type of account. I gave me an insight about thought process that goes through in their mind. In the head office of BRAC Bank Limited I talked with senior product

page | 5 will come in the labor force and it is necessary to make a financial product that is suitable for their needs.

1.6 Limitations

My internship period in BRAC Bank Limited is only 3 months. It was a wonderful experience to work in one of the best banks in this country. I tried my best to have an understanding of the whole banking process during my internship period. Unfortunately, there were some limitations for which I was unable to learn and understand the whole banking process. These limitations are described below: Classified information : Banks are run by total secrecy. For my report, it was very important for me to know the exact number of accounts opening each year and the percentage of women among them. I could have shown the trend in increase of women getting loans thorough out the year. But these are considered as classified information for that reason, I could not get these kinds of information. Time constraint: A good research needs time and money to conduct. As, I was working for the past 3 months, I could not get the time for proper research and this report would have been more informative if I was given more time at the bank interviewing employees and clients. Uncooperative clients: Clients found it Strang, when they were asked about their banking information; as, these are sensitive information, it was very hard to get a proper response for them. There was no incentive for them to answer my questions and some ignored as it was wasting their time. If there were monetary incentives for them to answer my questions it would have been very helpful.

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CHAPTER 2:

ORGANIZATIONAL

AND DIVISIONAL

OVERVIEW

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2.3 Logo of BRAC Bank Limited

The square structure of the logo implies strong and solid. The Golden Color in the lower part of the logo implies that 'Brilliant Bangladesh and her fruitful land'. The Blue shading in the upper segment signifies 'the sky with colossal and boundless opportunity'. The white shaded bend signifies 'Development and Progress'. White circles in the blue shading mean the glimmering sun that offers light to all over the earth.

2.4 Vision, Mission and Values

Corporate Vision Building a profitable and socially responsible financial institution focused on market and business with growth potential, thereby assisting BRAC and its stakeholders build a “just, enlightened, healthy, democratic and poverty free Bangladesh”. Corporate Mission  1.Sustained growth in “Small & Medium Enterprise” sector  Continuous low-cost deposit growth with controlled growth in retail assets  Corporate Assets to be funded through self-liability mobilization. Growth in assets through syndications and investment in faster growing sectors  Continuous endeavor to increase non-funded income  Keep our debt charges at 2% to maintain a steady profitable growth  Achieve efficient synergy between the bank’s branches, SME unit offices and BRAC field offices for delivery of remittance and the bank’s other products and services  Manage various lines of business in a fully controlled environment with no compromise on service quality  Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality

page | 9 Values An institution’s values must reflect the organization’s policies. BRAC Bank Limited’s values comes from its mother concern BRAC, the largest NGO in the world. Since its inception, BRAC Bank has put an enormous effort to build an ethical environment that is practiced in the organization on its 7 core values- CRYSTAL C stands for being Creative that focuses on individuals coming up with innovative ideas at work stands for being Reliable that emphasizes on individuals being worthy of reliance at work. Y stands for remaining Youthful that underlines energy and vibrancy among its team members. S stands for being Strong that highlights on the willingness to move forward and apply conscious choice, willpower, discipline and passion stands for being Transparent that shows openness and honesty through clear and direct communication. A stand for being Accountable that stresses the importance of individuals taking responsibility for the outcomes of their actions. L stands for being Loyal that calls attention to being compliant and dedicated at work.

2.5 Shareholding Structure

Majority of the sharers are given to the public and as the mother company BRAC Ngo has most of the stake in the company. BRAC Bank has been performing very well in the stock market. Because of its good governance and authentic approaches to the problems has made it one of the best and trusted bank in the

0.0002 0.0007^ 0.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% BRAC Others Non resident Bangladeshis Mutual Funds Institutions and General Public

Shareholders

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2.7 Software Used in the Banking System

Finacle This is a core banking product developed by Infosys that provides universal digital banking solutions to the banks. This software is used by banks across 100 countries and serves almost 1 billion customers. BRAC Bank Limited has started to use Finacle in 2007, since then it has shown an estimated growth of more than 800%. During my internship period I had the chance to work with this software and this is the main reason of smooth banking services provided by BRAC Bank Limited. All the data are stored using this software and finding information about customers are easy with this software. Connect-plus This is a money transfer software are currently used by the BRAC Bank credit and money transfer employees. Easy and secure service that allows to monitors the transaction happening all over the country. Connect - plus help the employees to check data on the system about money transfer and transfer related issues and the solutions can be provided in a very short time.

2.8 Awards and Achievements

 BRAC Bank received ‘Women’s Market Champion Engagement Award’ in November 2018 for TARA  Hong Kong-based magazine Asia money has awarded BRAC Bank as the "Best Bank for SMEs".  BRAC Bank won Institute of Chartered Accountants of Bangladesh (ICAB)Best Published Annual Reports 2016 - Private Sector Banks.  BRAC Bank won South Asia’s most prestigious corporate disclosure honors, South Asian Federation of Accountants (SAFA) Award for Best Presented Annual Report 2016

page | 12  BRAC Bank was awarded with 'Sustainable Marketing Excellence Award' from CMO Asia.  BRAC Bank Limited has won prestigious 'Best Bank in Bangladesh Award' from Finance Asia as part of Country Awards for Achievement 2013.  BRAC Bank Limited has received ICAB National Award for Best Published Accounts and Reports 2010 as joint third position under banking category.  BRAC Bank received National Award as the Highest VAT payer for the financial year 2007 - 2008

2.9 Corporate Social Responsibility (CSR) Activities

BRAC Bank Limited is a sister concern of BRAC NGO, therefore, it has the same values and principle as the NGO. Over the years, BBL is committed to help the environment for a sustainable future. Many initiatives have been taken for this as a part of CSR activity. Budget for CSR has increased a lot in 2017 from 2016. This clearly implies the intention of BRAC Bank towards the socity. From 2013, BRAC Bank has started to establish solar pales in all its newly opened SME unit offices and also plans to go 100% solar in the near future. As part of its CSR activities, BRAC Bank-Prothom Alo Trust Adamya Medhabi Scholarship was introduced in 2010 to assist meritorious student of underprivileged families to fulfill their pursuit of higher education. BRAC Bank has provided scholarships to meritorious students of Business Studies Faculty of Dhaka University.The bank, as part of its corporate social responsibility platform, provides scholarship to 40 students at the faculty. Also, employees of BRAC Bank do a marathon each year to raise funds, and the same amount of fund BRAC Bank gives to the social causes, it has been happening since 2011.