Marketing of Banking Services Of Southeast Bank Limited

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Marketing of Banking Services Of Southeast Bank Limited

CHAPTER-01

1.1: Introduction

Bangladesh is a poor country, but the banking sector has improved a lot due to proper necessary and fastest action. There are 48 different banks in Bangladesh. There are 49 different banks in Bangladesh. Among them, total number of State-owned bank is 04, specialized bank 05, private bank 28, foreign bank 12. In urban area total numbers of branches of state-owned are 1,238 and rural 2,146 while specialized are accordingly 155 and 1,203. Although in urban area private bank’s branches are 1,295, in the rural area has only 490. It is very painful to say that there are 49 branches of different foreign banks in the urban area, but not a single branch till now for rural area till now. But, ratio of total banks for urban area is 41.62% and for rural 58.38%.

The principal reason banks and many competitor lenders are issued charters of incorporation by government is to make loans to their customers. Banks, thrift institutions, and other chartered lenders are expected to support their local communities with an adequate supply of credit for all legitimate business and consumer financial needs and to price that credit reasonably in line with competitively determined market interest rate. Indeed, making loans to fund consumptions and investment spending is the principal economic function of banks and their closest competitors. How well a lender performs in fulfilling the landing function has a great deal to do with the economic health of its region, because loan support the growth of new business and jobs within the lender’s trade territory.

Despite all the benefits of lending for both the institutions that makes loan and for their customer, the lending process bears careful internal and external monitoring at all the times. A bank has many services like corporate banking, retail banking SME banking, and Islamic banking. It has its pricing strategy and promotional tools. It has different loan policy. The bank has own service process.

1.2: Objective

The report titled “The Marketing of Banking Services: (Case of Southeast Bank Limited)”. The objective of the report is to determine and evaluate the of the bank as well as find better scope and advantages for the potential and prospecting customer of the bank. The main purpose is to be familiar with the real world situation and practical experience in a business firm. Commercial bank, especially private bank is one of the important business sectors in Bangladesh.

Traditional system of study is totally obsolete in current world. If I have no practical knowledge with theoretical knowledge, cannot complete in the job market. For that reason have some objectives of my study. The study mainly conducted with following objective:

1.2.1: Broad Objective

The broad objective of the study is to conduct the performance analysis of the various departments of Southeast Bank Limited over the years of its operation in the Commercial Banking sector in Bangladesh.

1.2.2: Specific Objectives

The specific objectives of this study are as follows:

• Relate theoretical knowledge with practical experience in several functions of the bank.
• Identify and evaluate different functional services offered by the bank to its clients.
• The process and the personnel involved in the various departments of the bank.
• To know about the pattern of the clientswho are taking the services from the bank.
• To analyze the financial performance of the various departments of Southeast Bank Limited over the years of banking operations.
• Influence of Marketing Strategies in the operations of Southeast Bank Limited.
• Analyze the possible Internal Factors (Strengths and Weaknesses) and External
• Factors (Opportunities and Threats) for SEBL.

To understand how important commercial bank are functioning of a modern economy and financial system.

• To do the practical work.
• To learn the organizational behavior.
• .To knows the follow up processes for recoveries.
• To learn the making process of the proposal for approval of the head office.
• To know the dealings process with the Bangladesh Bank (BB).
• Above all, to know the overall banking process.
• To gather comprehensive knowledge on overall banking functions of SEBL.
• To trace origin of the SEBL.
• To analyze and evaluate the customer service of SEBL.
• To have a clear idea about the various aspects of customer services provided by SEBL.
• To see how the commercial are regulated and to earn practical knowledge.

1.3: Scope of the Study

The basic scope of conducting this study is to analyze the performance of various departments of Southeast Bank Limited. Through investigation and analysis of the respective departments over the years of operation can highlight the banks performance when compared to other commercial banks operating in the country. Due to modern concept in the banking operations are being practiced by different banks, the banking arena is considered to be very competitive. Therefore in keeping up with the performance through customer oriented services, SEBL must be aware of its total operation procedure which can be determined by the performance of the respective departments.

In this research work, the overall view of the banking system, its history and mechanism, policies and appraisal of SEBL and other areas of activity is extensively analyzed and the findings is clarified along with in depth study. The main part of the study covers the General Banking, operational scenario of Credit Department, Foreign Exchange, Remittance, and Retail Banking Departments of Southeast Bank Limited. This will eventually refer that how the bank help the customers securing their cash and assets, getting credit facility, exporting and importing the goods and how it remits money of the foreign clients, etc.

1.4: Methodology of the Report

1.4.1: Area of Investigation

As the Banking Sector is very large, therefore only focused on specific departments of banks and taking only consideration of the operations of Southeast Bank Limited, where have been assigned to serve as an Internee. Have highlighting the operations of:

• General Banking Department
• Credit and Loan Department
• Accounts Department
• Clearing department
• Retail Banking Department

1.5: Source of Information

The study is conducted on the basis of both primary and secondary data.

1.5.1: Primary Data

The primary information was gathered through interviews, observation and group discussion. The primary data are collected from all the departments of Southeast Bank Limited by interviewing personnel of the respective departments. The heads of the departments or senior executives have been interviewed. However, the analysis and the explanation are the author’s.

1.5.2: Secondary Data

The secondary information was gathered through

• Annual Report, Publications, Training materials of Southeast Bank Limited.
• Periodical statements of the Beak, Brochures, Booklets etc.
• Office circular

And carefully developed, disguised queries, trend and growth rate analysis, ratio analysis, graphical presentation such as pie chart, bar, graphs have been used. Raw data collected from various sources required to be processed, edited for the purpose of the study.

For this study mainly secondary source of data had been relied on, because secondary data can be an immediate and cost effective means to gaining valuable insight into research issues, provided that the information comes from reliable and timely sources. Its sample was small and no representative. The research has been started with secondary data and preceded to primary data only when the secondary data sources have been exhausted or yield marginal returns. An analytical approach has been followed to conclude the decisions.

1.6: Sampling Plan of the Report

1.6.1: Sampling Procedure

The sampling procedure was conducted on the Deliberate Sampling method, where the respondents and the interviewees are considered on my convenience and priority.

1.6.2: Sampling Unit

In order to carry out the research work, I focused on taking the interviews of the Personnel involved in the different departments, Manager and Senior Level Employees, Business Clients.

1.7: Scope of the Report

This report coveis Southeast bank’s Products and Services. Credit Policy, Organizational Overview, Management and Organizational Structure functions performed by SBL. Italso covers overview of the general banking division, processes and other functions.

1.8: Limitation of the Report

I have faced the following problems that may be termed as the limitations/shortcoming of the study. The main limitations encountered in producing this report are:

• The main constrain of the study was insufficiency of information, which was provide due to security and other corporate obligations
• The data and variousinformation of SBL Bank are not in organized way that’s why Bank foiled to provide all information.
• Due to time limitation many of the aspects could not be discussed in the present report.
• Lack of opportunity to visit more than one branch
• All the time of preparing my report I tried to gather every details of process but the major limitation is lack of adequate information,

CHAPTER-02

2.0: The Organization: South East Bank Ltd.

2.1: Historical Background:

Southeast Bank Limited is a scheduled Bank under private sector established under the ambit of bank Company Act, 1991 and Incorporated as a Public Limited Company under Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations effective from May 25, 1995 during this short span of rime the Bank had been successful to position itself as a progressive and dynamic financial institution in the country. The Bank had been widely acclaimed by the business community, from small entrepreneur or large traders and industrial conglomerates, including the top rated corporate borrowers for forward-looking business outlook and innovative financing solutions Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the country’s banking sector as a Bank with vision. Presently it has thirty four branches in operation.

The emergence of Southeast Bank Limited at the junction of liberation of global economic activities, after the URUGUAY ROUND has been an important event in the financial sector of Bangladesh. The experience of the prosperous economies of Asian Vision” has been preciously the essence of the legend of bank’s success.

Southeast Bank Limited has been awarded license by the Government of Bangladesh as a Scheduled Bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the up capital adequacy requirement of Bangladesh bank.

2.2: SBL’s Vision:

To be a premier banking institution in Bangladesh and contribute significantly to the national economy.

2.3: SBL’s mission:

· High quality financial services with slate of the art technology.

· Fast & accurate customer service.

· Sustainable growth strategy.

· Follow ethical standards in business.

· Steady return on shareholders’ equity.

· Innovative banking at a competitive price.

· Attract and retain quality human resource.

2.4: SBL’s Core Values:

· Integrity

· Respect

· Fairness

· Harmony

· Team spirit

· Courtesy

· Commitment

· Service Excellence

· Insight and Spirit

· Enthusiasm for Work

· Business Ethics

2.5: SBL’s Core Strengths:

• Transparent and quick decision making;
• Efficient team of performers
• Satisfied customers
• Internal control
• Skilled risk management
• Diversification

2.6: SBL’s Client Commitments:

Ours is customer focused modem banking institution in Bangladesh. Our business motives center on the emerging needs of the market our commitments to the clients re the following:

• Provide service with high degree of professionalism and use of modern technology.
• Create life-long relationship baaed on mutual trust and respect.
• Response to customer needs with quickness and accuracy.
• Sharing their values and beliefs
• Grow as our customers grow.
• Provide products and services at Competitive pricing
• Ensure Safety and security of customers’ valuables in Crust with us.

2.7: SBL’s corporate culture:

Southeast Bank is one of the most disciplined Banks with a distinctive corporate culture.

Making. The people of bank can see and understand events, activities, objects and situation in a distinctive way They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to them The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate culture.

2.8: Business Objectives of Southeast Bank:

• Make sound investments.
• Meet capital adequacy requirement at all the time.
• Ensure a satisfied work force.
• Ensure 100% recovery of all advances.
• Focus on fee-based income.
• Adopt an appropriate management technology

2.9: Corporate Slogan:

…..A bank with vision

General Information
Certificate of Incorporation			March 12, 1995
Certificate of Commencement of Business			March 12, 1995
Bangladesh Bank license			March 23, 1995
First Branch Opened			May 25, 1995
Dividend offered in 2008			35%
Number of Branches			46 as on 31/12/2008
Number of Employees			1231 as on 31/12/2008
Global Correspondents			587 as on 31/12/2008
Listing of Shares			DSE & CSE
Financial Stability (Taka in million)
Authorized Capital	June 30, 2009			10,000.00
Paid – up Capital	June 30, 2009			3,422.64
Total Capital (Tier I + Tier II)	June 30, 2009			7960.96
Deposit	June 30, 2009			80,235.51
Advances	June 30, 2009			63,108.25
Investments	June 30, 2009			18,698.40
Operating Profit	June 30, 2009			1,726.40
* Initial public offering of shares of Tk. 150.00 million was completed in 1999
Chairman of the Bank		Serving Period
Mr. M.A. Kashem		March, 1995 – June, 1998
Mr. Ragib Ali		July, 1998 – June, 1999
Mr. Yussuf Abdullah Harun		July, 1999 – September, 2002
Mr. Ragib Ali		September, 2002 – August, 2003
Mr. Azimuddin Ahmed		August, 2003 – September, 2004
Mr. Alamgir Kabir, FCA		29th September, 2004 till date

2.10: Diary of Events:

Vice Chairman of the Bank	Serving Period
Mr. Ragib Ali	March, 1995 to June, 1998
Mr. Azim Uddin Ahmed	July, 1998 – June, 1999
Mr. Ragib Ali	July, 1999 – September, 2002
Mr. Azimuddin Ahmed	September, 2002 – August, 2003
Mr. Ragib Ali	August, 2003 to September, 2004
M/S Tilla Ghar Holdings Limited represented by Mr. Abdul Hye	29th September, 2004 till date
Managing Director of the Bank	Serving Period
Mr. Syed Anisul Huq	April 4, 1995 – April 3, 2000
Mr. Shah Md. Nurul Alam	July, 1999 – May 11, 2002
Syed Abu Naser Bukhtear Ahmed	30th May 2002 – 30th Sep. 2004
Mr. M.A. Muhith (M.D. C.C.)	01st Oct. 2004 – 20th Oct. 2004
Mr. Neaz Ahmed	21st October, 2004 – 25th March 2009
Mr. M.A. Muhith (M.D. C.C.)	28th March, 2009 – 21st June, 2009
Mr. Mahbubul Alam	22nd June, 2009 till date
Company Secretary	Serving Period
Mr. A.K. Qureshi	January 18, 1995 – January 17, 2004
Mr. Muhammad Shahjahan	January 18, 2004 till date

2.11: Management Team:

Mr. Mahbubul Alam Managing Director

Mr. Syed Imtiaz Hasib Deputy Managing Director

Mr. Serajul Islam Executive Director

Mr. Faruq Ahmed Siddiqui Chief of capital Market Division

Mr. Muhammad Shahjahan Senior Executive Vice President & Company Secretary.

Mr. Mohammad Gofran Senior Executive Vice President

Mr. S.M.Mainuddin Chowdhury Senior Executive Vice President

Mr. Shahid Hossain Senior Executive Vice President

2.12: Organizational Structure of Southeast Bank Limited:

The Chairman is the head of the Board of Directors. There is one Managing Director who is also the President mainly controls and supervises the major division of the bank. One Deputy Managing Director reports to him. Four Executive Vice Presidents (EVP) and one Senior Executive Vice President (SEVP) report to the Deputy Managing Director. Executive vice President Control the Senior Executive Vice President controls the human resource and marketing divisions. Four Vice Presidents work under Executive Vice Presidents.

The organization structure of Southeast bank Limited is quite horizontal were each person reports to only one person which refers to a very group-working environment for example. Each officer reports to the FAVP or AVP or FVP or VP or SVP or EVP, AVP or FVP or VP or SVP or EVP reports to the SEVP; SEVP report to the Deputy Managing Director and he report to the Managing director

In the organization structure of Principal Branch, SBL we can also observe that each person reports to only one person. One Executive Vice President is the head of branch one First Vice President (Operation Manager) and the in Charges of credit and foreign exchange department directly report to the EVP. The Operation Manager controls the general banking, cash, accounts and computer department.

SL. No.	Designation
1.	Managing Director
2.	Deputy managing Director-1
3.	Deputy managing Director-11
4.	Senior Executive Vice President
5.	Executive Vice President
6.	Senior Vice President
7.	Vice President
8.	First Vice President
9.	Senior Assistant Vice President
10.	Assistant Vice President
11.	Senior Principal Officer
12.	Principal Officer
13.	Executive Officer
14.	Management Trainee
15.	Senior Officer
16.	Probationary Officer
17.	Officer
18.	Trainee Officer
19.	Junior Officer
20.	Trainee Junior Officer

• Organizational Layout of Southeast Bank Limited in Cash Department:

SL. No.	Designation
1	Head Cashier
2	Senior Officer-Cash
3	Officer- Cash
4	Junior Officer-Cash
5	Junior Officer-Cash

 

 

 

• Organizational Layout of Southeast Bank Limited in Information Technology Department:

SL. No.	Designation
1	Senior Officer
2	Officer
3	Junior Officer
4	Computer Operator

2.13: Five years performance at a glance:

In Million Taka

Particulars	2009	2008	2007	2006	2005
Authorized Capital	10,000.00	3,500.00	3,500.00	3,500.00	2,500.00
Paid up Capital	3,422.64	2,852.20	2,281.76	2,112.74	1,056.37
Reserve Fund / Others	6,504.62	4,804.81	4,186.60	2,828.18	1,180.47
Deposit	96,669.05	68,714.67	55,474.05	46,056.18	38,258.15
Advance	77,497.57	60,281.26	48,164.60	41,147.28	32,551.09
Investment	21,350.23	12,299.61	8,462.86	6,265.55	5,113.14
Import Business	69,582.92	58,019.77	38,470.34	35,125.12	29,079.30
Export Business	46,724.47	42,178.60	28,771.36	25,874.61	13,511.10
Guarantee Business	11,916.74	15,078.99	9,008.32	8,656.80	7,975.00
Remittance Business	23,800.00	15,221.87	11,040.17	13,479.83	3,507.40
Total Income	13,702.25	10,250.13	8,670.47	6,766.11	4,689.55
Total Expenditure	9,087.79	7,237.55	5,754.27	4,703.45	3,216.11
Operating Profit	4,614.66	3,012.58	2,916.20	2,062.66	1,473.44
Net Profit after Tax and Provision	1,870.19	887.24	1,222.97	909.88	374.20
Fixed Assets	4,338.35	2,685.56	1,708.11	1,300.39	790.62
Total Assets	112,676.98	81,181.53	64,370.69	53,706.12	43,294.81

2.14: SWOT ANALYSIS FOR SEBL:

SWOT is a short form that is used to describe the particular strengths, weakness, opportunities and threats that are strategies factors for a specific company. For the Southeast Bank Limited I found it as follows:

Strengths: v Efficient management. v Leading Retail loan providers v Better employee relations. v Better location of the branch. v Better financial standing. v Interesting consumer schemes. v Quick delivery of foreign exchange. v On line Banking v ATM facility v Simultaneously Islamic Banking	Opportunities: v Market leadership. v Growth of the banking sector. v Difficult consumer service scheme of the SJIBL. v Make the goodwill. v Perform more quickly services. v Go beyond the national boundaries. v SMS banking.
Weakness: v Inadequate work force. v Conservative loan facility. v Profit rate is less than others. v Lack of sufficient own ATM booths	Threats: v Political instability. v Intense competition. v Government rules and regulation. v Economical variation. v Policy of competitive banks.

· SWOT analysis for SBL.

CHAPTER-03

3.0: MARKETING ANALYSIS OF SEVEN P’S

3.1: Product Mix:

The banks primarily deal in services and therefore, the formulation of product mix is required to be in the face of changing business environment conditions. Of course the public sector commercial banks have launched a number of policies and programs for the development of backward regions and welfare of the weaker sections of the society but at the same time it is also right to mention that their development-oriented welfare programs are not optimal to the national socio-economic requirements. A proportional contraction in the number of customers is found affecting the business of public sector commercial banks. The changing psychology, the increasing expectation, the rising income, the changing lifestyles, the increasing domination of foreign banks and the changing needs and requirements of the customers at large make it essential that they innovate their service mix and make them of worked class.

Marketing aims not only offering but also at creating\innovating the services\ schemes found new to the competitors vis-a vis- to the customers. The enhanced customer patronage would be a reward to the bank. The additional attractions, the product attractiveness would be a plus point of a mix, which would help in many ways. The formulation of product mix is found to be a difficult task that requires world-class professionalism.

Southeast Bank Limited has started its operation as a Conventional May 25, 1995. But pretty soon afterwards, within few months, the Bank has taken up the Challenge to start Islami Banking Operations. The Challenge is not so much as in operating Islamic Banking but in maintaining both the forms in Parallel.

At first will describe different kind of products under general banking.

3.1.1 Current Account (CD):

• Current Account can be opened for individuals and business concerns including non-profit organization.
• A current Account shall be opened with a minimum balance of TK.5, 000.
• A current Account shall be opened with an initial cash deposit.
• Minimum Balance 10 be maintained in current a/c is TK.5,000.
• Frequent transactions (both deposits and withdrawals) are allowed in the account.
• Cheque book shall issue to the account holder having a minimum balance of Tk.5,000/intbea/c.
• A current Account holder can draw cheques on their accounts for any amount and any number of times in a day subject to the availability of balance.
• No interest shall be allowed on a current a/c.
• Statements of account shall be dispatched to all account holders by the bank specified in the A/c opening form while opening an a/c.
• A Current Account can be overdrawn subject to arrangement.
• The hank at its discretion shall realize charges for dishonored/bounced cheque drawn on bank but returned for insufficient balance as per his rate approved by Head Office from time to time.
• The bank reserves the right to reserves or close any account without assigning any reason thereof.
• Every change of address shall be intimated to the bank.
• “Notice” stopping payment of any cheque shall be made by account holder in writing, which shall be recorded.
• The bank shall accept “Standing Instructions” from the account holder(s) to make periodical payment to Insurance Companies, Clubs, Societies, and Landowners. Bills Payment to shopkeepers/Finns etc. against payment of prescribed service charge.

· Documents required for current Deposit account:

The following documents duly completed shall be obtained from the customer at the time of opening of

I. Individual/Joint A/C

II. Partnership A/C

III. Proprietorship A/C

IV. Societies, Clubs. Associations A/C

• Current Deposit account opening Form

• Specimen Signature Card

• Two copies of Passport size photograph duly authenticated by (he

• Photocopy of the Trade License Duty Attested

• Mandate or authority form for operating on an individual. Proprietorship is to be obtained if a customer wants to authorize another person to operate an account on his behalf
• Certified true copy of bye-laws/rules and regulations/ constitutions in case of societies, clubs, associations and limited Companies in case of corporations and autonomous bodies, Act/Ordinance etc.
• Certified true copy of the Resolution Authorizing opening and opening and operating of account with the Bank passed by the Executive Committee/Managing Committee of the Society/Club or Association, Limited Companies etc. In case of corporations and autonomous bodies copies of the Act or Ordinance showing authority to open account and letter from the authorized person in the absence of any board.
• List of members of the Executive Committee/List of Directors.

• Partnership Deed or in lieu there of partnership letter in case of partnership firms.
• Copy of Passport/Nationality Certificate/Voter ID of the persons operating and account

• KYC. Transaction Profiles

3.1.2 Savings account (SB):

• Savings Bank Account shall be opened in the name of adult individual o jointly in the names of two or more persons payable either or both or all of them or to the survivor or survivors.
• Savings account shall be opened in the names of Clubs, Associations and similar institutions.
• A savings a/c shall be opened with an initial cash deposit.
• No person shall be allowed to open more than one a/c in his/her name. But this /her name in respect of each minor child.
• Present and permanent address of the person in detail shall be obtained.
• Cheque book shall issue to the a/c holder having a minimum balance of TK.5000/=
• A saving a/c depositor shall deposit money as often as he wishes.
• The minimum balance required to be maintained at all limes is TK.5000/- and the bank reserves the right lo change the minimum balance requirement and/or to close such accounts without prior notice if the balance fails below this amount.
• A depositor can withdraw from his Savings Bank Deposit Account twice in a week, 25% of his/her balance or TK.25000/- whichever is lower. If any depositor wants to withdraw mote than 25% of (he balance or more than TK 25000/-.7 days prior notice is required to be served to the Bank for the information .otherwise the customer shall not be entitled to get interest for that month. To any depositor repeatedly withdraws more than 255 of the balance or more than TK.25000/- or more than twice in a week, service charge as applicable for Current Account shall he applicable to that SB account.
• Interest shall be applied on half yearly basis at the prescribed rates as advised by Head Office from time to time.
• Rates if interest shall be altered from time to time and the customer from die concerned Branch should ascertain this. Any alteration in me shall be displayed at the Branch premises.
• Interest shall be allowed only on account bearing a minimum balance of TK.5,000/- per calendar month. Subject to the foregoing, calculations shall be made for each calendar month on the lowest credit balance/monthly minimum balance in an account for that month.
• Statement of account shall be dispatched to all Account Holders by the Bank on a quarterly/half yearly basis as per desire of the customers to be specified in the a/c opening form while opening an a/c.
• It is in the interest of the account holder to inform the Bank of every change of address immediately for regularity of records.
• The Bank reserves the right to refuse or close any account without assigning any reason thereof.
• The bank reserves the right to stop issuance of new cheque book to any customer.
• Saving Bank Account shall not be allowed to be conducted as Current Account
• If the provisions of these rules are contravened continually the Bank shall be empowered to levy a service charge at its discretion.
• The Bank reserves the right to alter or introduce new rules al any lime.
• The depositor shall hold the Bank free from any and all responsibilities for and to indemnify the Bank against any loss or damage of funds, securities or properties deposited with the Bank due to any negligence on the part of the customer or any order of Government or other legal Authority, law, levy, tax,

embargo, moratorium, exchange restriction or any other causes what so ever beyond Bank’s control.

• A serving account shall not allow being overdrawn.
• “Notice” stopping payment of any cheque shall be made by account holder in
• The Bank shall accept “Standing Instructions” from die account holders to owner Bills Payment to shopkeepers/Firms etc. against payment of prescribed service charge

q Documents required for savings accounts:

• Account Opening Form

• Specimen Signature Card

• Mandate or authority shall be obtained in case the customer wants to authorize another parson to operate the account
• Two copies of recent photograph of the A/C holder and mandate duly attested by the account holder.
• Copy of passport/Nationality Certificate/ Voter ID of the persons operating the account.

• KYC. Transaction Profile.

3.1.3 Special Notice Deposit (SND) Account:

Special Notice Deposit (SND) is an interest bearing deposit where advance notice is required for withdrawal. SND Account is very much similar to CD Account.

3.1.3.1 Features and Benefits

• Bank pays attractive interest.

• Personalized MICR Cheque Book is available.

• Nominal service charge.

• Any branch banking facility (Cash withdrawal and deposit from any branch)

• Bank accepts and supports Standing Instructions.

• Nomination facility is available to nominate beneficiary for account proceeds.

• Interest is payable on half yearly basis.

• Charge free statement of A/C, Balance Confirmation Certificate twice in a year on half yearly / yearly basis.

• Option is available to collect e – Statement on monthly basis.

3.1.3.2 Eligibility

• SND Account can be opened both for Individual and Corporate bodies.

• SND Account can be opened both for resident and non – resident Bangladeshi Nationals.
• Age bar for Personal SND Account: 18 years or above.

• Joint account can be opened.

• Minor account can be opened under the supervision of his / her / their guardian.

• Account can be opened in the name of Trust / Club / Association / Societies / Non – Trading Concerns.

3.1.3.3 Requirements

Applicants must satisfy the following documentation requirements:

q Personal Banking

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License.

· Two copies of recent passport size photograph duly attested by the introducer.

· Certified document(s) for source of income.

· Tax Certificate.

· Proof of communication address: Photocopy of an Electricity Bill / Gas Bill / Wasa Bill / Telephone Bill.

· The account requires to be introduced by an existing and satisfactory account holder of Southeast Bank Limited.

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Nominee form and photograph of nominee(s) (signature attested by the account holder). In case of minor nominee, copy of the birth certificate and photograph required;

· Personal Information Form.

· Transaction Profile.

· KYC Form.

q Corporate Banking

· Sole Proprietorship Concern

· Copy of valid Trade License;

· Declaration for opening foreign currency account duly filled in and signed;

· Recent passport size photograph(s) of signatory attested by the introducer.

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License.

· Sole Proprietorship Declaration;

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Official Seal;

· Tax Certificate;

· Personal Information Form.

· Transaction Profile;

· KYC Form

q Partnership Concern

· Copy of Partnership Deed of the Firm (Registered / At least notarized);

· Firm Registration Certificate (if registered);

· List of Partners with their addresses;

· Copy of valid Trade License;

· Recent passport size photograph(s) of signatory / signatories attested by the introducer. (Photograph(s) of the signatory / signatories of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License. (Photocopy of valid Passport of the signatory of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Resolution of the partners of the firm for opening the account and authorization for its operation duly certified by managing partner of the firm;

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Official Seal;

· Tax Certificate;

· Personal Information Form.

· Transaction Profile;

· KYC Form

q Private Limited Company

· Certified true copy of Certificate of Incorporation;

· Certified true copy of the Memorandum & Articles of Association of the Company duly attached;

· Certified true copy of Certificate of Commencement;

· Certified true copy of Form XII of the company;

· Extract of the Resolution of the Board Meeting of the Company for opening the account and authorization of its operation duly certified by the Chairman / Managing Director of the Company;

· Recent passport size photograph(s) of signatory / signatories attested by the introducer. (Photograph(s) of the signatory / signatories of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License. (Photocopy of valid Passport of the signatory of non-residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· List of Directors with addresses;

· Copy of valid Trade License;

· Official Seal with designation;

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Tax Certificate;

· Personal Information Form.

· Transaction Profile;

· KYC Form;

q Public Limited Company:

· Certified true copy of Certificate of Incorporation;

· Certified true Copy of the Memorandum & Articles of Association of the Company duly attached;

· Certified true copy of Form XII of the company;

· Extract of the Resolution of the Board Meeting of the Company for opening the account and authorization of its operation duly certified by the Chairman / Managing Director of the Company;

· Recent passport size photograph(s) of signatory / signatories attested by the introducer. (Photograph(s) of the signatory / signatories of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License. (Photocopy of valid Passport of the signatory of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· List of Directors with addresses;

· Copy of valid Trade License;

· Official Seal with designation;

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Tax Certificate;

· Personal Information Form.

· Transaction Profile;

· KYC Form;

q Trusts / Clubs / Associations / Societies / Co – operatives / NGO / Non – trading Concerns

· Certified true copy of the constitution / By – Laws / Trust Deed / Memorandum and Articles of Association;

· Certificate of Registration of the Association / Club / Charity / Trust / Society / Co – operative / NGO / Non – trading concern for inspection and return (along with a duly certified photocopy for Bank’s records);

· List of members of the Governing Body / Executive Committee of the Association / Club / Charity / Trust / Society / Co-operative / NGO / Non – trading concern with their addresses;

· Extract of Resolution of the Association / Club / Charity / Trust / Society / Co – operative / NGO / Non – trading concern for opening the account and authorization of its operation duly certified by the Chairman / Secretary of the Association / Club / Charity / Trust / Society / Co-operative / NGO / Non – trading concern etc.

· Recent passport size photograph(s) of signatory / signatories attested by the introducer. (Photograph(s) of the signatory / signatories of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License. (Photocopy of valid Passport of the signatory of non-residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

· Official Seal mentioning designation

· Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

· Personal Information Form.

· Transaction Profile;

· KYC Form

q Fees & Charges

· Bank & NBFIs : 3.00%

· Corporate Premium Account (average balance Tk 100 crore & above): Will be fixed upon specific approval from Head Office on case case basis.

· Mother Account (IPO): Will be fixed upon approval from Head Office on case to case basis.

· Cheque Book Issuance fee

· Taka 150/- for cheque book of 20 leafs

· Taka 300/- for cheque book of 50 leafs

· Standing Instruction charge TK 100 for compliance of each Instruction

· Account Closing Charge Taka 350/-.

· VAT applicable for all fees & charges @15%.

· Half yearly Service Charge

· Taka 1,000/- on each account of urban branches.

· Taka 500/- on each account of rural branches.

· Online Transactions – free of service charge..

Special Notice Deposit (SND)
Customers
Below Tk. 1.00 Crore	Tk. 1.00 Crore & above but below Tk. 25.00 Crore	Tk. 25.00 Crore & above but below Tk. 50.00 Crore	Tk. 50.00 Crore & above but below Tk. 100.00 Crore	Tk. 100.00 Crore & above
4.50%	5.00%	5.50%	6.00%	8.00%
Mother Account (IPO): Will be fixed upon approval from Head Office on case to case basis.

3.1.4 Short term Deposit A/C:

• Short Term Deposit A/C [STD/Special notice deposit account are opened usually by Corporations, Banks, Financial Institutions. Public Limited

• The deposits held in these accounts shall be payable on 7 to 30 days prior notice. IF otherwise, interest for the month shall not be allowed.

• The rate of interest on such deposit is subject to change to be fixed by Head Office from time to time.

• Interest shall be paid in the client’s account on daily product basis to be calculated at the end of each calendar year.

• Statement of account shall be dispatched to all account holders by the Bank on a monthly/quarterly/half yearly basis as per desire of the customers to be specified in the A/C opening form while opening an A/C.

q Documents required for short term Deposit Account:

Short term deposit account shall be opened in the account opening forms used for current deposit account and the documents required for current A/C shall be equally applicable for STD A/C. In case of a STD A/C on the lop of current deposit A/C opening form the word -“Short Term Deposit Account” shall be written in the block letters and the notice period shall be noted on the Specie] Instructions column.

3.1.5 Fixed Deposits A/C:

• Fixed deposits are neither transferable nor negotiable.

• Fixed Deposits shall be opened singly or jointly

• Fixed Deposits shall be opened in the name of a minor jointly with the guardian

• Fixed Deposits shall be opened tot a period of one month and above

• Interest on Fixed Deposits shall be payable at the rates fixed by Head Office

from time to time, depending on the period of maturity.

• The branch shall take prior written approval from Head Office on case-to-case basis in case of issuance of any FDRs for the period above one year.
• Interest accrued on FDRs shall be paid only on maturity of the instruments.
• In case of pre-mature encashment of FDR, interest shall be paid as per the circular to be issued by Head Office from time to time.
• Different amounts of FDR purchased on different dates by any depositor shall be considered as separate deposits and rate of interest shall be applied as per the prescribed rate sheet for those deposits.
• Payment of FOR shall be made on demand after the expiry of the maturity period on presentation of FDR duly discharged by the depositors(s).
• The FDR shall be paid before die expire of the maturity period at the request of the party. For payment of interest on premature FDR Head Office Circular issued from lime to time, is to be followed.
• If an FDR is issued to one individual, additional name(s) shall be added/ included in the FDR at his request.
• If FDR is in joint names and request for adding additional named.) comes of all other depositors.
• Each time FDR is opened it shall be considered as a separate contract.

• Various deposits in the name of (be same depositor or in the names of the

q Documents required for FDR Account:

• Account opening form for FDFL

• Specimen Signature card.

• KYC

3.1.6: Special savings Schemes:

The types of special purpose Deposits/Savings schemes along with their operational procedures are:

3.1.6.1 Pension saving scheme (PSS):

• With this scheme One can save on a monthly basis and this shall ultimately grow into a large amount of money the duration of 4, 6, 8 and 10 years.
• Monthly installment size to be deposited TK500/ or multiple up to TK.25000/-

• A person of 18 years of age and above can open the account.

• A person can open more than one PSS account for different amount at any branch of the Bank and in such case separate form shall be filled.
• The applicant shall open a Cc/Saving Account with the branch from where monthly installment shall be realized automatically.
• Separate photograph and introduction shall not be required for PSS account as this is covered in his/her SB/CD account opened with the bank.
• PSS account can be opened any time of the month. But if the account is opened after 10^th of any month in That case 1^st installment shall be due from the following month and shall be realized m the following month.
• The account holder shall give a standing instruction to the branch and installments shall be realized to the PSS account by debiting designated CD/SB account within the first 5 (five) working days of the month.
• An account holder requires nominating one or more person(s)s) as his/her nominee(s).
• PSS account can be opened at any working day of the month.

• One can close the account before maturity.

Customer Friendly Deposit Schemes	Monthly Installment Size (Tk)	Amount built up after 4years (Tk)	Amount built up after 6years (Tk)	Amount built up after 8years (Tk)	Amount built up after 10years (Tk)
Pension Savings Scheme (P.S.S.)	500.00	30.500.00	52,000.00	78,000.00	1,11, 500.00
	1,000.00	61,000.00	1,04,000.00	1,56,000.00	2,23,000.00
	1,500.00	91,500.00	1, 56,000.00	2,34,000.00	3,34,500.00
	2000.00	1,12,000.00	2,08,000.00	3,12,000.00	4.46,000.00
	2,500.00	1,52,500.00	2,60,000.00