A special focus on foreign exchange of Bank Asia Ltd
1.1 Origin of the Report
The global economy, in the 2002, had no respite from the repercussion of the economic slowdown that started in late 2000 with a growth of only 1.7%. The major reason for this has been the structural imbalances in the two leading economics, the US and Japan, with weak recovery in the former and stagnation in the latter. The USA and Japan together account for 4.7% of global GDP and 20% of export and 25% of import. Both the economics are now undergoing almost nil GDP growth, high unemployment and decline in their share of world trade. The situation is further exacerbated by the recession in the EU, another dominant player in the world economy.
The Bangladesh economy marked a GDP growth of 4.8% in FY 2001-02 compared to 5.3% in the previous financial year. Agricultural sector contributed 25% of total GDP with a growth of 2.8% as against 3.1% in 2000-01. Industrial sector saw relatively higher growth in power, energy, water and small enterprise than in large and medium industries reflecting weakening exports. Services sector also registered as satisfactory considering an average global economic growth of 1.7% although upward inflationary pressure implies a lower real growth. In recent months Bangladesh receiving indication for substantial amount of Foreign Direct Investment, and the country received a net amount of US$ 505.45 million as foreign investment during the FY04 registering a 5% annual growth over the previous year.
1.2 Objective of the Study
- To know the financial performance of Bank Asia Limited.
- To evaluate their strength and weaknesses regarding banking sector.
- To justify their way of banking in our economy.
- To overview the whole operation at a glance.
- To compare the Bank Asia Limited with some private commercial banks.
- To illustrate banks liquidity and capital reservation with special reference to the annual report.
- To clarify the disbursement, advances and classified loans.
- To know the contribution of GDP towards Bangladesh economy.
- To state the major drawbacks and the way of improvement.
- To know the proper utilization of resources those are available in our economy.
1.3 Scope of the Study:
Worldwide economic situation continued to pose adverse impact on most developing countries including Bangladesh challenging the possibility of registering a positive growth in the year 2002. A wide variety of business, industries and sectors constitutes the advance portfolio, major sectors where the Bank Asia have entered in particular, Textile and ready made garments, Edible oil, telecom, media and technology, Shipping, ship breaking, steel and engineering etc.
Bank Asia Limited it is a well known private commercial bank in the banking sector and doing formidable job. So far researcher has a very specific scope to overview the whole system. The banking sector continued to make remarkable profit in the 2002. Especially the 31 private banks recorded a profit before tax Tk. 1445.50 corer with a growth of 6.56% over the previous years Tk. 1356.38 corer.
1.4 Methodology of the Study
Data Sources and referred are both primary and secondary in nature. The required primary data were collected by personal interviews. The sources of secondary data are published articles and periodical and annual report of Bank Asia, daily newspapers etc.
1.5 Data sources.
Collections of facts (underdone facts) generally treated as data. There are two types of data viz.
- Primary Data
- Secondary Data
The primary data are those which are collected a fresh and for the first time and thus happen to be original in character.
Sources of primary data
Conducting survey and personal interview method through questionnaire.
The secondary data, on the other hand, are those which have already been collected by some one else and which have already been passed through the statistical process.
Sources of Secondary data
Secondary data for this particular study was collected from the Administration Department of Bank Asia Limited, Annual report of Bank Asia Limited, Directories and Manuals, Magazines and Periodicals, Bankers Guide and From Web sites.
- Researcher has time constrain to prepare an extensive report like financial evaluation of Bank Asia Limited.
- It is very difficult to get the information from the branch office so the unavailability of data creates an enormous problem while constructing the report.
- All the assumptions and analysis have been done with the data available to me so there may be some wrong findings.
- There are some obligations to get the exact information.
- There were some technical problems like data interpretation, transmission, and data reservation.
- Restriction regarding information disclosing.
- Data that has been preserved are not user friendly manner.
- They cannot give foil authority to the in terms to get full information because they afraid of licking the information.
- Arbitrary hypothesis formulate some sort of wrong interpretation.
BANKING OVERVIEW OF BANGLADESH
2.1 What is Bank?
A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers to borrow and lend.
Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as:
- conducting current accounts for his customers
- paying cheques drawn on him, and
- Collecting cheques for his customers.
In most English common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking’ (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques do not depend on how the bank is organized or regulated.
The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in minds that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:
- “banking business” means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).
- “banking business” means the business of either or both of the following:
- receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] … or with a period of call or notice of less than that period;
- paying or collecting cheques drawn by or paid in by customers
Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has lead legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.
2.2 Origin of the Bank
The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times.
In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome- that of the Imperial Mint.
2.3 Objectives of Bank
The broad objectives of the Bank are:
a) To regulate the issue of the currency and the keeping of reserves;
b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;
c) To preserve the par value of the Bangladesh Taka;
d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country’s productive resources for the national interest.
2.4 Wider commercial role
However the commercial role of banks is wider than banking, and includes:
- issue of banknotes (promissory notes issued by a banker and payable to bearer on demand)
- processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means
- issuing bank drafts and bank cheques
- accepting money on term deposit
- lending money by way of overdraft, installment loan or otherwise
- providing documentary and standby letters of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures
- safekeeping of documents and other items in safe deposit boxes
- currency exchange
Sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a ‘financial supermarket’.
2.5 Law of banking
Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as follows:
- The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, and the customer owes the balance to the bank.
- The bank engages to pay the customer’s cheques up to the amount standing to the credit of the customer’s account, plus any agreed overdraft limit.
- The bank may not pay from the customer’s account without a mandate from the customer, e.g. a cheque drawn by the customer.
- The bank engages to promptly collect the cheques deposited to the customer’s account as the customer’s agent, and to credit the proceeds to the customer’s account.
- The bank has a right to combine the customer’s accounts, since each account is just an aspect of the same credit relationship.
- The bank has a lien on cheques deposited to the customer’s account, to the extent that the customer is indebted to the bank.
- The bank must not disclose the details of the transactions going through the customer’s account unless the customer consents, there is a public duty to disclose, the bank’s interests require it, or under compulsion of law.
- The bank must not close a customer’s account without reasonable notice to the customer, because cheques are outstanding in the ordinary course of business for several days.
These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force in the jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship.
2.6 Types of banks
Banks’ activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to High Net Worth Individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits.
Central banks are normally government owned banks, often charged with quasi-regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis.
2.7 Types of retail banks
National Bank of the Republic, Salt Lake City 1908
National Copper Bank, Salt Lake City 1911
- Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term “commercial bank” to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.
- Community Banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners
- Community development banks: regulated banks that provide financial services and credit to under-served markets or populations.
- Postal savings banks: savings banks associated with national postal systems.
- Private Banks: manage the assets of high net worth individuals.
- Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks.
- Savings bank: in Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative, while in others socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralized distribution network, providing local and regional outreach and by their socially responsible approach to business and society.
- Building societies and Landes banks: conduct retail banking.
- Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments.
- Islamic banks: Banks that transact according to Islamic principle Types of investment banks.
- Investment banks: “underwrite” (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions.
- Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.
2.8 List of the Banks in Bangladesh
Nationalized Commercial Banks
The banking system of Bangladesh is dominated by the 4 Nationalized Commercial Banks , which together controlled more than 54% of deposits and operated 3388 branches (54% of the total) as of December 31, 2004<href=”#cite_note-bbk1-0″ title=””>. The nationalized commercial banks are:
Private Commercial Banks
Private Banks are the highest growth sector due to the dismal performances of government banks (above). They tend to offer better service and products.
- AB Bank Limited
- BRAC Bank Limited
- Eastern Bank Limited
- Dutch Bangla Bank Limited
- Dhaka Bank Limited
- Islami Bank Bangladesh Ltd
- Pubali Bank Limited
- Uttara Bank Limited
- IFIC Bank Limited
- National Bank Limited
- The City Bank Limited
- United Commercial Bank Limited
- NCC Bank Limited
- Prime Bank Limited
- Southeast Bank Limited
- Al-Arafah Islami Bank Limited
- Social Investment Bank Limited
- Standard Bank Limited
- One Bank Limited
- Exim Bank Limited
- Mercantile Bank Limited
- Bangladesh Commerce Bank Limited
- Mutual Trust Bank Limited
- First Security Bank Limited
- The Premier Bank Limited
- Bank Asia Limited
- Trust Bank Limited
- Shahjalal Bank Limited
- Jamuna Bank Limited
- Standard Chartered Bank
- Commercial Bank of Ceylon
- State Bank of India
- Habib Bank
- National Bank of Pakistan
- Woori Bank
- Bank Alfalah
- ICB Islami Bank
Out of the specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank) were created to meet the credit needs of the agricultural sector while the other two ( Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans to the industrial sector<href=”#cite_note-bbk1-0″ title=””>. The Specialized banks are:
- Grameen Bank
- Bangladesh Krishi Bank
- Bangladesh Shilpa Bank
- Rajshahi Krishi Unnayan Bank
- Bangladesh Shilpa Rin Sangstha
- Basic Bank Ltd (Bank of Small Industries and Commerce)
- Bangladesh Somobay Bank Limited(Cooperative Bank)
- The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
3.1 Overview of Bank Asia Limited
The economy of Bangladesh has been experiencing a rapid growth since the 90’s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers’ remittance, local and foreign investments in construction, communication, power, food processing and service enterprise ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives. A group of highly acclaimed businessmen of the country grouped together to respond to this need and established Bank Asia Limited in the year 1999.
The Bank Asia incorporated as a public limited company under the Companies Act. 1994. The bank started its commercial operation on November 1999 with an authorized capital of Tk.800 million and paid up capital of Tk.218 million. The paid up capital of the bank stood at Tk.1116 million as on 31st December 2006.
Within a short span of time Bank Asia has established itself as one of the fast growing local private banks. It has at present a network of 26 branches serving many of the leading corporate houses and is gradually moving towards retail banking. Its other significant delivery channel is the shared ATM Network. Bank Asia has 25 ATMs as a member of ETN along with eleven other banks. Since its humble beginning in 1999, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank. Last year the Bank again came to the limelight with over subscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market’s history and its shares commands respectable premium.
The asset and liability growth has been remarkable. By December 2006 the total asset of the Bank grew to Tk. 30,478 million, increase of almost 30% comparing to 2005. As of December 2006 deposits increased to Tk. 25,289 million, an increase of 37% over that of 2005, and Loans & Advances reached Tk. 22,255 million, an increase of 25% over that of the year 2005.
Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank’s investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline.
Bank Asia is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stellar Online Banking software enables direct linking of a client’s account, without the requirement for a separate account.
Bank Asia has successfully established a transparent process of recruitment seeking the best talent. In its efforts towards continuous development of the human resources of the Bank, it arranges training programs throughout the year.
Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.
§ To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy.
§ To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees.
§ To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of professionals.
3.4 Objective of Bank Asia Limited
Bank Asia Limited has objectives as like any other organization in order to run their services. These are as follow:
- To blend in its operations traditional banking with modern international services.
- To facilitate its stakeholders with high standard and quality banking.
- To conduct foreign exchange business such as international money remittance service and so on as well as in national.
- To extent credit facility to the client.
- To provide standard and quick services in to the client.
- To extent custodial services such as locker.
- To extent general banking services to the clients.
- Buying and selling of foreign currencies.
3.5 Policy of Bank Asia Limited
Bangladesh is trying hard and soul to make and give effort to be an efficient player in the global market in terms of business. Accordingly, Bank Asia Limited will as a matter of policy, mobilized its financial, non financial and human resource in conformity with international norms, standards and practices.
In the domestic economic field Bank Asia Limited has set its sight on providing its clientele the edge of banking and finance which will enable then to run their enterprises profitability. Bank Asia Limited give a hand the customer with its technology, know how training and specialization, and will provide world class banking system.
3.6 Head office and Branch offices in Bangladesh
The head office of Bank Asia Limited is situated in Tea Board Bhaban (Ground Floor) -111-113 Motijheel C/A, Dhaka-1000, Dhaka, Bangladesh. It is currently operating with its twelve branches in Dhaka City, three in Chittagong, one in Sylhet and one in Munshigonj and one in Tarail Kishorgonj. Very soon they are going to expand their branches in other parts of the districts in Bangladesh. In order to point international banking services to their valuable clients, it has established a wide correspondent relationship with a number of local and foreign banks.
3.7 Introduction of the Principal Office Branch:
To cope the market with it’s quality service and to reach the doorstep of the people of the country, Bank Asia Ltd adds new branches in urban as well as rural areas in every year. And by this way, on 29th of April 2000 it opened Principal Office Branch in city’s commercial hub Motijheel, located in Tea Board building. From the instigation these branches focus on the corporate clients and performs very well. And from then it performs as the central clearing branch in Dhaka Zone and acts as the feeding branch for other branch in Dhaka Zone. In the year 2004 it contributes BDT 98.73 million as profit to banks total earning. And in the year 2004 it earns highest of taka one core in the year June. But unfortunately in the recent months it’s earning falls down sharply due to conservative attitude of the branch to extend new loan facilities to the business community. And the management emphasizes to improve profit-earning capacity with stability and sustainability. And also branch management focus on the minimization of cost to maximize the profit.
In the month April 2005 the branch earned BDT 3.42 million and total deposit as on 30th of April 2005 is BDT 2037 million where as total advances is BDT 2411 million. Although the branch is facing negative growth in its profit performance, the initiatives of branch management will improve the state of affairs in a little while. 82 percent of total deposit is high cost deposit. Hence the branch management drives to channel more cost free and low cost deposit that will perk up the profit scenario of the branch. Usually a bank tries to lock up its fund for short term and cut more gain. And at present 41percent of the total advances of this branch is in term loan and remaining as continuous and demand loan. The branch tries to trade off between term loan and revolving loan to maximize its earning.
At present this branch is comprises with twenty-two officials and headed by branch manger Mr. M.A.M. Moquit, a prominent banker in the industry. Definitely with in a short time the branch will able to regain its status as one of the highest earning branches of Bank Asia Ltd with its well-satisfied customer group.
3.8 Management & Organizational Structure
3.9 Division of Bank Asia Limited-Head Office
Operations, Credit & IT:
The main purpose of the operation department is to maintain and ensure free flow the overall activities
HR & Company Secretary:
In the evolving banking arena innovation and specialization will be the key to maintaining competitive edge. A transparent process to recruit the best talent is successfully established through the Human Resource Department. The human resource department conveys a number of training and development programs throughout in an effort towards continuous development of the Human product of the bank. Both internal and external trainers conduct in-house training programs and these programs are continuously updated to reflect the latest development in the banking as well as information technology sector. By the end of 2005 increases the manpower strength increased to 397 from 331 at the end of the previous year.
The Marketing Department is responsible for the coordination of all marketing activities of the Bank; ensures marketing activities are in compliance with state and federal regulations; develops various marketing concepts, objectives, materials, advertisements, programs, press releases, and other special events approved by senior management and the Board of Directors. The department provides guidance and coordinates implementation efforts with respect to the installation of new or existing products and services. The Marketing Department is also responsible for being the primary contact of public relations and media contacts, advertising, and certain business development activities that promote the spirit, philosophy, dedication, and general direction of the Bank.
International Division develops and service comprehensive personal financial relationships within affluent International target market through a professional sales effort and identifies qualified International potential clients. The department initiate contacts assess need; present an array of products and services, and close sales. This department is responsible for the management and total servicing of the international client relationship, and for the growth and profitability of the largest, most complex and profitable relationships in the unit.
The Credit Division is responsible for gathering and analyzing credit information on current and potential borrowers; determines the advisability of granting credit for diversified types of loans Duties also include assisting loan officers in writing loan requests; promoting business for the Bank by maintaining good customer relations and referring customers to appropriate staff for new services.
Audit & Internal Control
The Audit & Internal Control Department is responsible for developing, implementing and communicating Treasury Bank Audit’s vision, mission, goals and strategies. To ensure that critical business and regulatory processes are in place and working, this department develops and maintains an effective relationship with business partner management, helps business partners balance their business strategy with appropriate risk management controls and encourages business unit management to self-assess its business environment and develop action plans around ‘gaps’ that could impact sound risk management or success in meeting business plans. The division also ensures that staff understands and is appropriately aligned to the company’s objectives/values, and stay abreast to tactics employed by Audit and the business units they review. Other duties include assuring that adequate resources and training are provided to staff, sufficient to ensure full compliance with all regulatory requirements.
This department of BAL is responsible for the all of the Bank’s fiscal operating results, such as cost accounting, budgets, regulatory agency and government reports ensuring the safeguard of Bank assets. The Financial Control Department also counsels senior management on fiscal control and profitability; prepares, presents and interprets financial reports to senior management; adheres to tax laws and regulatory compliance to properly reflect the financial position of the Bank.
Information & Communication Tech
The Information & Communication Department is responsible for the Bank’s electronic and cash management-based products and services, including the development, deployment and maintenance of Bank’s Internet web site; assists account and business development officers in the sales of related products and services. The department also performs direct supervisory duties of department staff; coordinates staff for coverage in all related areas of the department; ensures various department activities or projects run smoothly and efficiently.
Branches of Bank Asia Limited
|1||Corporate Office||Tea Board Bhaban (1st Floor)111-113, Motijheel C/A, Dhaka-1000
Tel: (02) 7160938, 7177031-2, 7177034, 7164311
|2||Corporate Branch||Noor Tower (1st Floor)110, Bir Uttam C.R. Datta Road
Tel: (02) 9674501, 9674502, 9677031
|3||Principle Branch||111-113, Motijheel C/ADhaka-1000, Bangladesh
Tel: (02) 9563651-52, 9571450-51
|4||Gulshan Branch||Bay’a Galleria (ground Floor)57, Gulshan Avenue, Gulshan
Tel: (02) 8828103,8828387, 9889268-9
|5||Agrabad Branch||69, Agrabad C/AChittagong, Bangladesh
Tel: (031) 714665, 714703, 724876
|6||Malkhanagar Branch||Taltola Bazar, MalkhanagarMunshigonj, Bangladesh
|7||Scotia Branch||32, Kazi Nazrul Islam AvenueKarwan Bazar, Dhaka-1215
Tel: (02) 8110161, 8125011-2
|8||Sylhet Main Branch||60, Niloy Darge GateAirport Road, Sylhet, Bangladesh
Tel: (0821) 712256
|9||MCB Dilkusha Branch||4, Dilkusha C/ADhaka-1000, Bangladesh
Tel: (02) 9568871-3
|10||MCB Sk. Mujib Road Branch||Ayub Trade Center, 1269/B, Sk. Mujib RoadAgrabad C/A, Chittagong, Bangladesh
Tel: (031) 715125-7
|11||Tarail Branch||Tarail Bazar, TarailKishoreganj, Bangladesh
Tel: (09434) 75099, 01711-403322
|12||MCB Banani Branch||24, Kamal Ataturk Avenue, BananiDhaka-1213, Bangladesh
Tel: (02)9885610, 9889104, 9894699, 9899833
|13||Khatungonj Branch||Asia Center, 273/268, KhatungonjChittagonj, Bangladesh
Tel: (031) 610036, 638013-4
|14||Mitford Branch||Bismillah Tower (1st & 2nd Floor)147/148, Mitford Road
Tel: (02) 7320620, 7320621
|15||Uttara Branch||House-79/A, Road-7, Sector-4Uttara Model Town, Dhaka-1230, Bangladesh
Tel: (02) 8957427-9
|16||Ashulia Branch||Chowdhury Plaza (1st Floor)Zamgara Chourasta
Ashulia, Savar, Dhaka, Bangladesh
Tel: (02) 7790447-8
|17||North South Road Branch||89, Shaheed Syed Nazrul Islam ShoroniNorth South Road
Tel: (02) 9563768-69, 9563219
|18||CDA Avenue Branch||665, CDA Avenue, East NasirabadChittagong, Bangladesh
Tel: (031) 843428, 843640, 2850091-2
|19||Sylhet Uposhohor Branch||Rahim Tower, SubhanighatBishwa Road, Sylhet, Bangladesh
Tel: (0821) 815844, 815866
|20||Lohagara Branch||Mostafa Center, Post & PS: LohagaraChittagong, Bangladesh
Tel: (03034) 56304
|21||Dhanmondi Branch||House-13/A, Road-5, DhanmondiDhaka-1205, Bangladesh
Tel: (02) 8624874-5, 9675918
|22||Station road Branch||Mohiuddin Market (1st Floor)170, Station Road, Chittagong, Bangladesh
Tel: (031) 2850934-5
|23||Bashundhara Branch||House-25, Block-A, Avenue Road,Bashundhara R/A, Dhaka, Bangladesh
Tel: (02) 8835321-2
|24||Rajshahi Branch||182, Alu Patti, ChoramaraRajshahi-6100, Bangladesh
Tel: (0721) 812503-4
|25||Khulna Branch||Al-Mashah Complex, 44 Mojib SaraniKDA, Khulna-9100, Bangladesh
Tel: (041) 2830134-7
|26||Chatkhil Branch||Khilpara Road, 3147 Chatkhil BazarChatkhil, Noakhali, Bangladesh
Tel: (03222) 75179
|27||EPZ Branch||Zone Services Complex (Ground Floor)CEPZ, Chittagong, Bangladesh
Tel: (031) 800406
|28||Mohakhali Branch||82, Mohakhali C/ADhaka-1212, Bangladesh
Tel: (02) 8857236, 8857420
|29||Mirpur Branch||NISHI Plaza, Plot#1, Avenue-4Block-C, Section-6, Pallabi
Tel: (02) 9013814, 9013841
|30||Anderkilla Branch||184, J.M. Sen Avenue, AnderkillaChittagong, Bangladesh
Tel: (031) 2854556-7, 2854882, 2854883
|31||Bank Asia KIOSK||Sirajdikhan BazarMunshiganj, Bangladesh
Tel: 04495010353, 01730024510
|32||Rohitpur Branch||Rohitpur, Keranigonj, DhakaTel: (02) 7766677|
|33||Bogra Branch||Jamil Shopping CentreBorogola, Bogra
Tel: (051) 51642-4
|34||Jessore Branch||Jess Tower, 1st Floor39,/MK Road, Jessor
Tel: 0421-67748, 0421-67783-4
|35||Shantinagar Branch||Opening Soon|
3.10 Product & Services in Bank Asia Limited
Bank Asia is a new entrant in the private banking sector of Bangladesh. It is committed to provide flexible services to its customers for their maximum benefit & higher satisfaction. Gradually Bank Asia increases its product list for our valuable customers we are offering some products & schemes mentioned below-
- Savings account Foreign Currency account
- DPS- Deposit Pension Scheme Current account
- MB+ FDR
- STD- short term deposit DB+
- TRPLE Benefit PLUS
Since establish, its product list is healthy and includes most features. Whenever, the bank launches a product, it looks deeply in its technical issue & acceptance to the general public.
This is an interest bearing account and only individuals can open this type of accounts. Interest rate may differ from bank to bank. At present, Bank Asia is offering 6% interest on its SB accounts. This may be considered as low cost deposit for bank. Interest is charged to the account on quarterly basis.
Features of Savings Account
- interest bearing account
- Provide reasonable interest. Rate is now- 7 %
o Customer can Deposit any amount & no. of deposit is not restricted
- No. of withdrawal is restricted
- Deposit below tk15000.00 charges tk100.00 on half yearly basis
- Better for the small income group
It is popular known as Current Account. Any individual, company, firm, may open this type of account in its own name. This is non-interest bearing account. So it is a cost free deposits for bank, On the other hand, customers enjoy the right to wiredraw money as many times as they wish.
Features of Current Account:
1) Non interest bearing account
2) Running account
3) No. of withdrawal or deposit is not restricted
4) Operated any no. of times during a working day
5) Generally run by different business organization
Short Term Deposit (STD) Account:
This is opened and operated for short term and for specific purpose. It is also an interest bearing account and where rate of interest is generally below the savings rate. Normally, interest is paid on daily product basis. Individuals, Firms, Companies, Associations may open this account. Current Interest rate of Bank Asia for this deposit is 5%.
Fixed Deposit Receipt (FDR) Account:
Individuals, Firms, Companies, Associations may open this account. The deposit is taken for a specific fixed period of time, such as 1 months, 2 months, 3 months, 6months, 1-year etc. Interest rate depends on amount and period and ranges from 8% to 10.70%. In case of premature encashment generally no interest is awarded. In special consideration interest at saving rate or STD rate may be allowed. It is considered as high cost deposit for banks.
Features of Fixed Deposit Receipt (FDR) Account:
o Provide high interest
o Premature encashment provides only savings rate
o It is renewable before the date of maturity
|6||1 year (1 Crore & above)||13.50%|
|7||Above 1 Year||12.50%|
Deposit Pension Scheme plus (DPS+)
DPS Plus is a 3, 5,7,10 and 12 years term deposit scheme. Deposit monthly installment ranging from Tk. 500/- to Tk. 10,000/- and on maturity you receive a handsome amount as per table below.
|Monthly Deposit||After3 years||After5 years||After7 years||After10 years||After12 years|
· Installment will be automatically deposited from your Savings Account.
· Loan facility will be available up to 90% of the deposited amount.
Double Benefit plus (DB+)
DB+ is a 6 years term deposit scheme. Deposit your money in this account and get DOUBLE money in 6 years.
Features of this product are:
- Only individuals can open this account.
- Money deposited in this account will be doubled in 6 (six) years.
- Deposit amount will be minimum Tk. 1, 00,000/- or it’s multiple, and maximum deposit will be Tk. 25, 00,000/- under single name and Tk. 40, 00,000/- under joint name.
- Loan facility will be available up to 90% of the deposited amount.
Value at Maturity
|Tenure||Initial Deposit||Value at Maturity|
|6 years||Tk. 1,00,000/-||Tk. 2,00,000/-|
Triple Benefit plus (Triple+)
TRIPLE+ is a 9 years 6 months deposit scheme. Deposit your money in this account and get 3 times of deposit money in 9 years 6 months.
Features of this product are:
- Only individuals can open this account.
- Money deposited in this account will be Tripled in 9 (nine) years 6 (six) months.
- Deposit amount will be Tk. 1,00,000/- or it’s multiple, and maximum will be Tk. 25,00,000/- under single name and Tk. 40,00,000/- under joint name.
- Loan facility will be available up to 90% of the deposited amount.
Value at Maturity
|Tenure||Initial Deposit||Value at Maturity|
|91/2 years||Tk. 1,00,000/-||Tk. 3,00,000/-|
Monthly Benefit plus (MB+)
MB+ is a 3 years and 5 years term scheme deposit that lets you earn monthly benefit of Tk. 975/- and Tk. 1,000/- respectively for deposit of Tk. 1,00,000/-.
Features of this product are:
- Only individuals can open this account.
- The individuals must have a savings account with the