Credit Card Market in Bangladesh

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Credit Card Market in Bangladesh

Executive Summery

Owning a Credit Card is a basic right of a Qualified Financial Services Consumer. So in today’s banking world there is no even any one bank without this modern but necessary facility. It is a key operation of the new banking system. All the bank’s account holders are now enjoying this facility with great appreciation.

All the banks are now trying to give the most hassle free and comfortable system to enjoy the facility. These facilities are under E-Banking system. As the world is becoming like a village now-a-days, people are also trying to the most attach with that, where credit card is a beautiful symbol of it.

With this modern world we are walking. So there are also different types of credit card facilities in our banking arena with various new and upgraded facilities. Here we try our best to make a picture of their facilities.


The ‘credit card’, though a new phenomenon in business and transaction arena which had already won the hearts of millions across the globe, has set its foot in this part of the world with its magical power and becoming a way of life here by offering its handy feature and usefulness. In the advent of Information Technology and globalization, now shoppers need not worry about money, all they need is willingness and a credit card to buy anything they want at any places across the ‘Global Village’. Worldwide access, acceptability and popularity as well of credit cards have rose to such an extent that it is now posing a threat to theory of old ‘hard-cash’ possession of currencies amid growing sense of insecurity worldwide. The forward march of ‘plastic money’, the other name of the credit card, is so rapid that the whole concept of monetary system needs immediate review as it has put a question mark in the very existence of paper money.

The main benefit to each customer is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards. Additionally, carrying a credit card may be a convenience to some customers, as it eliminates the need to carry any cash for most purposes.

In our country credit card service is becoming more and more popular day by day.

Banking and Credit Card in Bangladesh

Financial sector of Bangladesh, like most developing countries, is dominated by banking enterprises. The commercial banks in Bangladesh are catching up fast with the rest of the world in terms of the use of the most advanced technologies. Starting from online banking and SMS banking, we have also seen the arrival of innovative technologies like the mobile ATM and many more. Credit/Debit Cards: Once a status symbol, the use of Credit/Debit or ATM Cards has now become an absolute necessity for the urban folk of Dhaka and other major cities of the country. With most of the commercial banks offering card services and with relative ease of making one compared to earlier times, Cards have become immensely popular for account holders ranging from university students to CEOs of corporate firms.

Former ANZ Grindlays Bank, now Standard Chartered Grindlays Bank, took a pioneering role in introducing credit card in Bangladesh. It started acquiring Visa and Mastercard nearly 10 years back. In the first few years, its operational area was very limited and concentrated only on the large hotels and restaurants. In 1997 the bank decided to launch full-scale card operation and very realistically brought a wide range of people under its service system. It is now giving a wide range of card services through multifarious quality facilities.

Some of banks providing Credit card facilities in our country:

÷ Standard Chartered Grindlays Bank

÷ Bank Asia Ltd.

÷ Exim Bank Ltd.

÷ NCC Bank Ltd.

÷ Janata Bank Ltd.

÷ South East Bank Ltd.

÷ Eastern Bank Ltd.

÷ Marcantile Bank Ltd.

÷ Eastern Bank Ltd.

÷ National Bank

÷ Premier Bank

÷ BRAC Bank

÷ City Bank

÷ IFIC Bank

÷ Dhaka Bank

÷ Commercial Bank of Ceylon

Credit Card Market in Bangladesh

6. Credit Card Brands

Bank Credit Card Brands
Bank Asia Ltd VISA Card


Commercial Bank of Ceylon VISA Card
Exim Bank Ltd. VISA card,

Master card.

NCC Bank Ltd VISA Card
Janata Bank Ltd. Q-Cash Credit Card.
Marcantile Bank Ltd. VISA Card
National Bank VISA Card
Premier Bank VISA Card
Jamuna Bank Ltd. Q-Cash


City Bank VISA Card
Dhaka Bank VISA Card
Dutch Bangla Bank Lt. VISA Card

Master Card.

Form the above information we found that most of the Bank in our country provide Visa card and Master card service. Some of the bank use Q-cash card service. Bt Visa and Master card is much more popular.

2.Types of Credit Card offered

Bank Types of Credit Card
Bank Asia Ltd VISA Gold (Dual)

VISA Classic (Dual)

VISA Local Gold

VISA Local Classic or Silver

VISA Tuntuni

Commercial Bank of Ceylon VISA Gold

VISA Classic

Exim Bank Ltd. Gold Card – Limit above 50000 taka.

Classic Card (Visa) – Limit bellows 50000 taka.

Silver Card (master) – Limit bellow 50000 taka.

NCC Bank Ltd Classic Local

Gold Local

Gold International

Janata Bank Ltd. Only one credit card brand: Q-Cash which is a locally used credit card.

No international credit card.

Eastern Bank Ltd. Simple Credit Card

Life-Style Card

Cool Card

EBL Travel Card

Marcantile Bank Ltd. Gold, Classic.

Types of card – Local, International Dual currency card.

BRAC Bank VISA Classic : Local

VISACold: Local

VISA Clssic: Dual Universal Classic Card

VISA Gold: Dual/ Universal Gold Card

City Bank VISA Local Classic

VISA Classic Dual

VISA Gold Local

Visa Gold Dual

IFIC Bank VISA Classic Local

VISA Gold Local

VISA Classic International

Visa Gold International

Dhaka Bank Dual Gold (International )

Dual Classic (International )

Local Gold (Only in Bangladesh )

Local Classic (Only in Bangladesh ; Limit below tk. 50,000 or more than tk. 50,000 )

Dutch Bangla Bank Ltd. Gold card – Limit above 70000 taka.

Classic card (Visa) – Limit bellows 70000 taka.

Silver card (master) – Limit bellows 70000 taka.

Every Bank which provides credit card service having mainly two types of service :

1. Gold

2. Classic

These two types are local and international card, Local Gold and Local Classic , and Universal Gold and Universal Classic . Card limits of different banks varies. Janata Bank provides local credit card service only. But other Private Banks provide local and international card service.

3. Number of card holders over years

A credit card is a great financial tool. It can be more convenient to use and carry than cash, and they offer valuable consumer protections. Paper money and coin are risky and burdensome for carrying. One can avoid the toll of finger-counting changes in this system. Dollars, Pounds or Taka can be plundered, lost or stolen. In case the card is stolen or lost the clients’ bank will issue a fresh card.

Bank Asia Ltd.

Date 15/11/2009 31/12/2008 31/12/2007 31/12/2006 31/12/2005
Number of Cardholder 4500 3500 3000 n/a n/a

The mission of Bank Asia Ltd. is to set high standards of integrity and bring total satisfaction to their clients. According to their mission that to create satisfaction among client they introduce credit card and the chart shows that the number of their credit card holders increased day by day.

Exim Bank Ltd.

Date 31/12/2009 31/12/2008 31/12/2007 31/12/2006 31/12/2005
Number of Cardholder Now total 3000 Only 800

NCC Bank Ltd.

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Number of Cardholder 1876 1730 1732 1024 N/A

NCC Bank has launched its Visa Credit Card Service on August 22, 2005 and within 2008 umber of their cardholders are increasing trend.

Dutch-Bangla Bank Ltd.

Date 31/12/2009 31/12/2008 31/12/2007 31/12/2006 31/12/2005
Number of Cardholder Now total 2000 members

Janata Bank Ltd.

Date 30/10/2009 31/12/2008 31/12/2007 31/12/2006 31/12/2005
Number of Cardholder 157 150

Mercantile Bank Ltd.

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Number of Cardholder 10950 6051 3212 N/A N/A

Dhaka Bank

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Number of Cardholders 6898 5188 5327 5177 4830

IFIC Bank Ltd.

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Number of Cardholders 60000

Jamuna Bank Limited

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Number of Cardholder 13000 7000 5500 2500 Nil

The Premier Bank Limited

Date 31/12/2004 31/12/2005 31/12/2006 31/12/2007 31/12/2008
Number of Cardholder 3,000 2,500 2,000 3,000 12,000

Every Bank has an increasing trend in their number of credit cardholder. It refers that the credit card market in our country is expanding day by day. People of our country are becoming more used to this facility as it is less risky than paper money.

4. Income and expenditure of card division over years:

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Bank Asia Ltd Revenue (Taka ) Tk. 4 crore Tk. 1.5 crore n/a n/a
Exim Bank Ltd Revenue (Taka ) 1 crore taka


This was preliminary stage so no revenue can be calculated.
Expenditure (Taka ) 15 lakhs at the initial stage. In this year total expenditure is 35 lakhs.
NCC Bank Ltd Revenue 44614833 30096185 15326248 1342042 N/A
Expenditure 5204650 3582390 6491559 N/A N/A
Janata Bank Ltd. Revenue Tk 15 Lac Tk 12 Lac
Expenditure Tk 35 Lac Tk 35 Lac
Marcantile Bank Ltd. Revenue 35500000
Expenditure 26000000
BRAC Bank Revenue 340848639 24874544 1127
Expenditure 20851669 6117410 Nil
National Bank Revenue 54259894 56110315 152396284 128098028
Expenditure 56754082 48952173 55293193 32585544
Premier Bank Revenue 76500000 75000000 60000000 65000000 54000000
Expenditure 37000000 35000000 34500000 42000000 36000000
Jamuna Bank Ltd. Revenue 2035666 459600 276440
Expenditure 1820000 670000 1380000
Dutch Bangla Bank Ltd. Revenue 35 lakhs taka


75 lakhs at the initial stage.
Dhaka Bank Revenue 27000000 19000000 17000000 16500000 15000000
Expenditure 14000000 14000000 12500000 11000000

The graphical presentation of expenditure card revenue of credit card of some bank are given below:

Graphical Presentation of Revenue and Expenditure of Credit Card:

Revenue and Expenditure of credit card of NCC Bank

Revenue of NCC Bank Ldt.

Expenditure of NCC Bank

The chart shows that the expenditure for credit card is decreasing and revenue is increasing .

Revenue and Expenditure of Credit Card in BRAC Bank

Revenue from Credit Card in BRAC Bank

Expenditure for Credit Card in BRAC Bank

The chart shows that the expenditure for credit card is decreasing and revenue is increasing.

Revenue and Expenditure of Credit Card in National Bank

Revenue from Credit Card

Cost for Credit Card

Expenditure for credit card in national bank is increasing within the last few years that is why the revenue from card has been decreased.

Revenue and Expenditure of Credit Card in Premier Bank Ltd.

Revenue from Credit Card

Expenditure for Credit Card

Revenue and Expenditure of Credit Card in Premier Bank Ltd.

Revenue from Credit Card

Expenditure for Credit Card

Revenue and Expenditure of Credit Card in Premier Bank Ltd.

Revenue from Credit Card

Expenditure for Credit Card

Revenue and Expenditure of Credit Card in Dhaka Bank

Revenue from Credit Card

Expenditure for Credit Card

In the most of the bank, revenue is in the increasing trend. Bt in some of bank revenue fluctuate. That means in some year their revenue increased and in other year decrease.

Banks expenditure depends on how they capture the market. When they want to capture the market then they need to spend more. This is the one of the main reason of their increased expenditure. In the initial stage bank do not have any revenue when they lonch the credit card. Banks generally borrow the money they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 5% difference is the “interest expense” and the 10% is the “net interest spread”.

his is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder’s balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings. Depending on the issuer, marketing programs are also a significant portion of expenses.

5.Amount of Cash withdrawals through credit card per

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004
Bank Asia Ltd Tk. 28 Lac Tk. 25 Lac n/a n/a
Exim Bank Ltd 70% of the total cash withdrawals through credit cards. 45% of the total cash withdrawals through credit cards.
NCC Bank Ltd 80 Lac 60 Lac 35 Lac 20 Lac
Janata Bank Ltd. Tk 1.32 crore Tk 95 Lac
Marcantile Bank Ltd. 90 lac 35 lac 15 lac
National Bank 11204564309 9179953111 305374736 324116595 289210422
Jamuna Bank Ltd. 5661000 1460000 210000
Dhaka Bank 52,433 15,175
Dutch Bangla Bank Ltd. 25% of the total cash withdrawals through credit cards.

Credit card is becoming more popular day by day in our country. The amount of withdrawal is increasing day by day in our country. Dutch Bangla Bank Ltd. deals 25% of the total cash withdrawal through credit card.

Number of Card defaulters per year

here is a number of credit cardholders who do not give the money to the bank after finishing the card limit. In this case, the banks have to fall in troubles and expansion of credit cards is naturally discouraged. Again, there are some people who try to take illegal advantage over credit cards.

Date 31/12/2008 31/12/2007 31/12/2006 31/12/2005 31/12/2004

Bank Asia Ltd

200 180
Exim Bank Ltd No card defaulters still
NCC Bank Ltd 298 257 206
Janata Bank Ltd. 1 0
Marcantile Bank Ltd. 1 0
Premier Bank 1500 400 300 300 200
Dhaka Bank 754 759 680 518
Dutch Bangla Bank Ltd. No card defaulters still.

As people are becoming more popular with the credit card that is why the possibilty of the defaulter of credit card is also increasing.

Graphical presentation of number of credit card defaulters of some bank:

Number of Card Defaulter in Bank Asia Ltd.

Number of Card Defaulter in NCC Bank Ltd.

Number of Card Defaulter in NCC Bank Ltd.

Number of Card Defaulter in Premier Ltd.

Number of Card Defaulter in Premier Bank Ltd.

7. Advertising Expenditure:

Banks have to make high expenditure for their credit card service to increase the demand. For advertising they use Bill board, News Paper, Electronic Media, Personal Selling. The most common advertising media is News paper which is used by all banks for their advertising. Some expense a lot in electronic media for advertising. News paper is the most used media of the advertising . Expenditure of advertising vary from bank to bank.

Bank Asia Ltd.

Year 2009 2008 2007 2006 2005
Newspaper Tk. 20 Lac Tk. 8 Lac Tk. 5 Lac

Exim Bank

Year 2009 2008 2007 2006 2005
Newspaper 15 lakhs 5 lakhs

(Please Mention)

Hand bill papers 5 lakhs. 1 lakh.

NCC Bank

Year 2008 2007 2006 2005 2004
Electronic Media 2000000 1050000 500000 355000 N/A
Newspaper 1500000 575000 200000 N/A N/A
Bill Board 1000000 700000 500000 N/A N/A

(Please Mention)


Dutch-Bangla Bank Ltd.

Year 2009
Newspaper 15 lakhs
Bill Board 5 lakhs

(Please Mention)

Hand bill papers 3 lakhs.

Mercantile Bank Ltd

Year 2008 2007 2006 2005 2004
Newspaper 7 lac 2.5 lac 2 lac N/A N/A
Personal Selling 2 lac 2.5 lac N/A N/A


Year 2008 2007 2006
Total 94285036 64649691 50273749

Dhaka Bank

Year 2008 2007 2006 2005 2004
Newspaper 5 10
Bill Board 5 8
Personal Selling 2 2 1 1 1

National Bank Ltd.

Year 2008 2007 2006 2005 2004
Total 46179467 8370521 10940775 5936730 3448087

The Premier Bank Limited

Year 2008 2007 2006 2005 2004
Newspaper 2,00,000 1,00,000 1,00,000
Personal Selling 5,00,000

8. Fees and Charges

Fees and charges also vary from bank to bank.

NCC Bank Ltd.

Credit Card Category Annual Fees Late Payment Fees Excess Over Limit Fees VAT
Classic Local 1000 200=/ 200=/ 15%
Gold Local 2000 200=/ 500=/
Gold International 3000 $10 $10

Dutch-Bangla Bank Ltd.

Particulars Local International / Dual
Gold BDT Classic






Annual fee (customers) 1500 1000 2500 1300
Annual fee (Bankers) 1500 1000 2550 1300
Supplementary card 0 0 500 500
Excess Limit 250 250 10$ 10$
Late Payment 300 200 10$ 10$
Return Cheque 50 50 5$ 5$
Statement Retrieval fee 50 50 3$ 3$
Sale slip Retrieval 100 100 10$ 10$
Outstation Cheque collection 100 100 10$ 10$
Pin replacement fee 200 200 200 200

Janata Bank Ltd.

u Card Fees and Charges: The following fees and charges are realized from Janata Bank Credit Card customer



1. Card fees

Ø Annual Fees

Ø Renewal Fees

500/- 2. Replacement/Lost Card fee
500/- 3. Supplementary Card fee
250/- 4. Late Payment fee(2%, p/m, Minimum)
50/- 5. Statement Retrieval fee
100/- 6. Sales Slip Retrieval fee
250/- 7. PIN Replacement fee


Any amount outstanding after the payment due date will apply 2% per month calculated on daily basis from the date of posting transaction to the card account until the amount is paid in full. Charging of interest will also include all the transactions shown on the current statement.

Interest on Cash Advance:

In case of cash withdrawal from ATM BY Credit Card, interest will be charged @ 2% per month from the date of Cash withdrawal until the cash drawn amount is paid in full. There will be no cash advance at Janata Bank ATM.

Late Payment Charge:

If the minimum amount due is not paid within the payment due date, a late payment fee @ 2% of the billing amount or Tk250/- whichever is higher will be charged.

Service Charge:

For using ATM of banks

÷ Tk. 10 per transaction – 16 Q-Cash Consortium banks(except Janata bank)

÷ No service charge for using ATM booths of Janata Bank Ltd.

÷ Tk 15 per transaction –BRAC Bank Ltd.

÷ Tk 20 per transaction –Dutch Bangla Bank Ltd.

Mercantile Bank Ltd.

Fees and Charges

÷ Gold int’l- $ 70 annually

÷ Classic int’l – $35 annually

÷ Gold local- 1800Tk. annually

÷ Classic local-900 Tk. annually

– Late payment charge Tk.250 per month

– Over limit Tk.350

Dhaka Bank

ees and Charges

÷ Local Classic: Taka. 1000

÷ Local Gold: Taka. 2000

÷ Dual Classic: Taka. 2000

÷ Dual Gold: Taka. 3000

9. Target Customers

÷ Sophisticated people,

÷ business man and

÷ MNC Service holders

÷ Bankers

÷ Corporate client companies and their employees

÷ Financial Institutions, Doctor, Engineer, University Teacher, Multinational Company, Govt. high officials.

÷ Private Organization Service Holder

÷ Govt. Organization Service Holder

÷ Doctor

÷ Engineer

o and other service holder who is capable to hold the credit card.

10. Customer Appraisal Procedure

Different Banks use different Customer Appraisal Procedure :

÷ Customer Phone Verification (CPV)- a procedure of custimer’s given information

÷ Income or salary statement checking

÷ Must be a customer of any branch of their bank

÷ Description of the movable and immovable assets, other bank loans and liabilities of the applicant

÷ In case of business man last six months transaction statement is repuired (in Janata Bank)

÷ Declaration from the applicant whether they take loan from other sources

Banks assess risk based on the information provided by the person wants to be the card holder.

11. Limit determination Procedure

Determination of Limit varies bank to bank and also customer to customer. To determine the limit of the credit card

No. Banks years Amount
2007 2008 2009
1 Bank Asia Ltd Around 0.025% of the profitability of the bank
2 Commercial Bank of Ceylon N/A
3 Exim Bank Ltd. 0.33% 1 crore & 10 lakh
4 NCC Bank Ltd 4 crore
5 Janata Bank Ltd. Around 2 lakh
6 South East Bank Ltd. 1.61% of profit
7 Eastern Bank Ltd. N/A
8 Marcantile Bank Ltd.


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