Performance Evaluation of a Bank as a Financial institution The Trust Bank Ltd

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Performance Evaluation of a Bank as a Financial institution The Trust Bank Ltd

Objectives of the Report

· The general objective of preparing this report is to find the performance of the bank.

· I have gathered theoretical knowledge from my College. But there is a far difference between practical and theoretical knowledge. This difference was crystal clear to me while I was preparing this report.

· To learn about the activities of the bank.

· To learn internal environment of the bank

· To observe Employee-Customer relationship.

· To observe inter personal relationship between employees.

Scope of the report

The report will help to understand the overall performance as well as the individual unit performance of the bank.

The report it self will deliver the financial strength of the bank in the money market and it will also help to learn about the bank with its infrastructural facilities, its services, products, interest rates and location of branches.

Methodology of the Study

Sources of Data: Both primary and secondary data were required to attain the objectives of this study.

  • Primary data:

For Primary data face-to-face interview. Depth interview technique has been used to collect information about bank’s financial performance. The interviewing methods were applied on responsible authority like Management trainees, officers, DGMs, AGMs, and the bank manager himself. They told us that why they think that they are running a successful banking operation.

  • Secondary data:

Some published materials of the bank under study have been used as the sources of secondary data. The published materials for the present study include list of journals, articles, notifications, important and also confidential report of Bangladesh Bank, guide books, annual report, brochures and web site etc. Trust Bank has provided those materials and help in collecting data for analysis and interpretation.

Web link of TBL to make this report has helped me to show the necessary information regarding the bank itself.

Limitations of the Study

It is natural that every journal, report has a few limitations. This report is not an exception. To work with this report I have faced some theoretical, informatory and confidential limitations. In this regard there are plenty of information and theory to use but not everyone is accustomed to using it.

In this report I have drawn some limitations. These are mentioned as below:

1. It was very hard to collect information from Officers and staffs because they were extremely busy with their day-to-day official works.

2. Original data could not be collected in some cases due to confidential reasons of specific units.

3. Since information is not contained in a compiled form it was difficult to collect up-to-date data on the subject in spite of co-operation from the officers and employees.

4. Another major limitation of the study was the lack of scope for communication with other banks’ officials and banks so the report may lack in comparison.

5. I did not work with full concentration because there were various types of general activities of the bank.

6. The time period was not sufficient to made this report so elaborative.

7. I have used limited data in this report.

8. This report tells about the activities of The Trust Bank in a nutshell.

9. Most of the data are collected from Secondary as well as Primary sources.

The Trust Bank Limited: An Overview

The Trust Bank Ltd. is a private, commercial, scheduled Bank, which obtained license from Bangladesh Bank on July 15, 1999. Presently Army Welfare Trust is the major shareholder. The authorized capital of the Bank is Taka one thousand million and paid-up capital of Taka three hundred and fifty million. Public shares will be floated in the near future. The Bank was formally inaugurated and listed as a scheduled Bank on November 1999.

The idea of setting up a Bank by Bangladesh Army was first conceived in 1987 and on November 29, 1999 the first branch of the Trust Bank Ltd. at Dhaka Cantonment was formally inaugurated by then Hon’ble Prime Minister, Sheikh Hasina.

Composition of the Board of TBL consists of Ex-officio Directors of in-service senior Army personnel, with the Chief of Army Staff as its Chairman and the Adjutant General as its Vice-Chairman.

In addition to ensuring quality customer services related to general banking the bank also deals in Foreign Exchange transactions. In the mean time the bank has extended credit facilities to almost all the sector of the country’s economy. The bank has plans to invest extensively in the country’s industrial and agricultural sectors in the coming days.

It has also plans to promote the agro-based industries of the country. The bank has already participated in syndicated loan agreement with other banks to promote textile sectors of the country. Such participation would continue in the future for greater interest of the overall economy. Keeping in mind the client’s financial and banking needs the bank is engaged in constantly improving its services to the clients and launching new and innovative products to provide better services towards fulfillment of growing demands of its customer.

Here in the TBL a blend of expertise and technological excellence is in place to meet varied needs of modern customers. The bank aims at mobilizing untapped money of the country and prudent deployment for productive activities in the form of lending at a competitive interest rates/loan pricing. Towards attainment of its goals and objectives, the bank pursues diversified credit policies and strategic planning in credit management. To name a few, the bank has extended micro credit, consumers durable scheme loans, house building loans etc. to cater to the needs of the individuals, which in turn has helped thousands of families. The bank also extends loan in the form of trade finance, industrial finance, project finance, export & import finance etc. The bank’s credit polices aimed at balanced growth and harmonious development of all the sectors of the country’s economy with top most priority to ensure quality of lending by averting growth of non-performing assets.

Board of Directors’ Profile

The Founder Members of the Board of Directors are as under: –

1. Lt Gen Muhammad Mustafizur Rahman, BB, ndc, psc Chairman

Chief of Army Staff., Bangladesh Army, Dhaka Cantonment, Dhaka.

2. Maj Gen Muhammed Masudur Rahman, BP, nwc, psc Vice-Chairman

Adjutant General, Bangladesh Army, Army Headquarters,

Dhaka Cantonment, Dhaka.

3. Brig Gen Khurshid Alam, psc Director

Director, Ordance Services, Army Headquarters,

Dhaka Cantonment, Dhaka.

4. Brig Gen Abdul Mannan Miah, ndu, psc Director

Director, Welfare & Rehabilitation, Army Headquarters,

Dhaka Cantonment, Dhaka.

5. Brig Gen A N M Muniruzzaman, psc Director

Director, WE & S, Army Headquarters,

Dhaka Cantonment, Dhaka.

6. Brig Gen Md Ahsan Habib Director

Director, Movement & Quartering, Army Headquarters,

Dhaka Cantonment, Dhaka.

7. Lt Col Khan Golap Director

A/Director, Personnel Administration, Army Headquarters,

Dhaka Cantonment, Dhaka.

8. Mr. Ekhlasur Rahman Director

CSO-1 Assistant Adjutant General (Project)

Welfare & Rehabilitation Directorate, Army Headquarters,

Dhaka Cantonment, Dhaka.

9. Md. Helal Uddin Managing Director

Present Members of the Board of Directors are as under:-

  1. Lt Gen Moeen U Ahmed, psc Chairman

Chief of Army Staff, Bangladesh Army

Army Headquarters, Dhaka Cantonment.

  1. Mr. Farhad Uddin Company Secretary
  1. Maj Gen Md Matiur Rahman,ndu,psc Vice Chairman

Adjutant General(AG), Bangladesh Army

Army Headquarters, Dhaka Cantonment

  1. Mr. Iqbal U. Ahmed Managing Director
  1. Brig Gen S M Mahbubul Karim Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Rafiqul Islam, ndc, psc Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Shawkat Hossain, psc Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Muhammad Anisur Rahman, ndc,psc Directors

Dhaka Cantonment, Dhaka

  1. Brig Gen Md Golam Mustafa, afwc Directors

Dhaka Cantonment, Dhaka

Organ gram of TBL

Chairman

Managing Director (MD)

Executive Vice-President (EVP)

Senior Vice-President (SVP)

Vice-President (VP)

Senior Assistant Vice-President (SAVP)

Assistant Vice-President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Grade-1 Officer

Grade-2 Officer

Trainee Officer (TO)

Junior Officer (JO)

Branch Network across The Country

At present the Bank has the following 17 (Seventeen) branches.

1. Principal Branch, Dhaka Cantonment, Dhaka.

2. Sena Kallyan Bhaban (SKB) Branch, Motijheel C/A, Dhaka.

3. Bogra Cantonment Branch, Bogra.

4. Comilla Cantonment Branch, Comilla.

5. Chittagong Cantonment Branch, Chittagong.

6. Rangpur Cantonment Branch, Rangpur.

7. Jessore Cantonment Branch, Jessore.

8. Momenshahi Cantonment Branch, Mymensingh.

9. Savar Cantonment Branch, Savar.

10. Jalalabad Cantonment Branch, Sylhet.

11. Agrabad Branch, Agrabad Commercial Area, Chittagong.

12. Shaheed Salahuddin Cantonment Branch, Ghatail, Tangail.

13. Dhanmondi Branch, BDR Gate # 04, Peelkhana, Dhanmondi, Dhaka.

14. Khatunganj, Chittagong.

15. Gulshan, Dhaka.

16. Uttara Model Town

17. Radisson Water Garden Hotel,Dhaka and Khawaja Yunus Ali Medical College & Hospital, Sirajgong

Vision of TBL

  1. To build a sustainable and respectable financial institution.
  2. To be a leading Commercial Bank, with a social focus, assisting in the economic development of the country.
  3. The Profit of the bank used for the Socio-economic development of the members of the Bangladesh Army and thereby the nation as a whole.
  4. Mission Statement of TBL
  5. Achieving sound and profitable growth in Assets & Liabilities, with focus to maintain non-performing assets at acceptable levels.
  6. To build long-lasting, credible and mutually dependable relationships with customers.
  7. Efficiently managing interest and operating costs.
  8. To excel in rendering superior customer service.
  9. To be the preferred employer among Banks in Bangladesh.

Mission Statement

  1. Achieving sound and profitable growth in Assets & Liabilities, with focus to maintain non-performing assets at acceptable levels.
  2. To build long-lasting, credible and mutually dependable relationship with customers
  3. Efficiently managed interest and operating costs.
  4. To excel in rendering superior customer service.
  5. To be the preferred employer among

Current Banking Sectors

  1. Transaction / General Banking
  2. Call Money Market
  3. International Trade and Finance:

i) Import service facilities

ii) Export service facilities

  1. Short-term & long-term deposits
  2. Capital And Loans & Advances

Foreign Correspondent Relationship

For routing L/Cs and other Foreign Exchange Transactions we have established Correspondent Relationship with major branches of the following foreign Banks.

01. Citibank N.A

02. The Hong Kong & Shanghai Banking Corp. Ltd. (HSBC)

03. American Express Bank Ltd.

04. Arab Bangladesh Bank Ltd.

Human Resources Development

The bank’s work force is composed of personnel having sound academic backgrounds with vast experience in banking. Human resources development creates an environment by dynamic, enthusiastic and vigorous participation of all individuals. The total number of executives and officers of the bank stood at 240 as on December 31, 2005. However, with opening new branches the total head count would increase in the year 2006. To make the personnel of the bank knowledgeable and truly professional, it arranges training for them at Head office of the bank, BIBM and other institutions. The management of the bank sits with the branch managers and departmental heads in regular meetings that provide scopes for open discussions, which help in formulating new strategies for achieving ‘targets’ of the bank. The bank also gives due emphasizes on the motivational side of the employees by providing them competitive salary/pay packages well as by creating pro-active job environment in the bank.

Information Technology (IT) and Automation:

All the branches of the TBL are fully computerized. New software is now in use to provide faster, accurate and efficient services to the clients. The bank is continuously striving for ensuring better services through extensive automation of its branches. This bank is soon going to launch “ONE BRANCH BANKING” through On-line connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT for ensuring better service in the days to come.

Information Technology (IT) and Automation

All the branches of the TBL are fully computerized. New software is now in use to provide faster, accurate and efficient services to the clients. The bank is continuously striving for ensuring better services through extensive automation of its branches. This bank is soon going to launch “ONE BRANCH BANKING” through On-line connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT for ensuring better service in the days to come.

Products of TBL

Deposit Products

Required papers/documents at the time of opening a ‘Current account’

For ‘Individual’ & ‘Joint’ Accounts

1) Introduction of the account.

2) Passport Size photographs [02 copies] duly attested by the introducer.

3) Attested copy of Voter ID Card/Passport/Nationality Certificate.

4) Transaction profile & Information of Customer

In case of ‘Proprietorship Firm’, ‘Partnership’ and ‘Private Ltd Company’ more papers/documents will be required at the time of account opening. Detailed information in these regards can be obtained from our branches.

Following Papers/documents are required to open a Savings Account

Individual [Personal] Account:

1) Introduction of the account

2) Passport size photographs [02 copies] duly attested by the introducer

3) Attested copies of Voter ID Card/Passport/Nationality Certificate

4) Transaction profile & Information of Customer

  • Joint Account

1) Introduction of account

2) Passport size photographs [02 copies]duly attested by the introducer

3) Attested copy of Voter ID Card/Passport/Nationality Certificate

4) Transaction profile & Information of Customer

Fixed Deposit (3 months to 3 years term)

Tenure Rate of Interest
03 months 9.50 %
06 months 9.75 %
12 months/01 year 10%
02 years 10%
03 years & above 10%

Savings Certificate

The following Savings Certificates of different denominations are available at the Principal Branch, Dhaka Cantonment, Dhaka & Chittagong Cantonment Branch, Chittagong.

? Defense Savings Certificate (8 years)

? Bangladesh Savings Certificate (5 years)

? 3 months profit based Savings Certificate (3 years)

? 6 months profit based Savings Certificate (5 years)

? Paribar Sanchaypatra (5 years)

Investment Products

Corporate Financing

  • Over Draft (OD)
  • Working Capital
  • Cash Credit
  • Hypothecation
  • Pledge
  • Import L/C
  • Export L/C
  • Gaurantees
  • Time loan

Trust Consumer Durable Scheme (TCDS)

Loans upto Tk, 60,000.00 available for purchase of household durable. Tenure ranges from 6 months to 24 months.

Trust Marriage Loan Scheme (TMLS)

Bank Provides loan upto Tk. 1,00,000.00 for marriage. Easy monthly installment for a maximum period of 48 months.

Trust Car Loan Scheme (TCLS)

Loans upto Tk. 3,00,000.00 available for purchase of car. Maximum period for repayment is 48 months only.

Trust House Building Loan Scheme (THLS)

House Building loan upto Tk. 12.50 lac available for expansion of residential buildings. Easy monthly installment for a maximum period of 07 years.

Trust Micro Credit for Renovation & Reconstruction of Dwelling Houses

Small loans of Tk. 20,000.00 Tk. 30,000.00 and Tk. 40,000.00 are given to the low-income group for improving standard and quality of living.

International Trade

International Banking

The Trust Bank Limited, with its wide correspondent relationship with major banks in the world is totally capable to meet your needs of foreign currency transactions and foreign trade services. You can open and maintain Accounts in foreign currencies like US Dollar, Pound Sterling, Japanese Yen and even in Euro with us. With its own Dealing Room, TBL is able to offer you competitive Exchange Rate for all major currencies of the world.

FA Account- FC Account (Foreign Nationals)

Completed Account opening Form signed by the account holder/s and introduced by an existing customer who has a relationship with us at least for 6 months.

Copy of 1 st six pages of passport and relevant page with more than 6 months visa of staying in Bangladesh. (Photocopy of document must be certified as “Original seen/sighted”)

Photograph/s of the signatory/ies /account holders duly attested by the introducer.

Form QA- 22 (in duplicate)

Copy of work permit from Ministry of Industries (where applicable)

Documented proof of address verification to be retained with the mandate.

To open an account when the person not being present personally i.e. in a non-face to face scenario is to obtain at least one additional form of evidence (e.g. copy of utility bills/bank statements/tax clearance certificate/ employer letter/home visit) over and above what would have been obtained in the corresponding face to face situation.

Local Legal & Compliance should be consulted, in case of doubt on the acceptable identification evidence for a particular customer type.

Welcome & follow-up letter’ as part of additional address verification.

Completed KYC template (Appendix-1 & Appendix- 1A for signatories authorized by third party mandate or power of attorney).

Non Resident Foreign Currency Deposit Account

Completed Account opening Form signed by the account holder/s and introduced by an existing customer who has a relationship with us at least for 6 months.

Copy of 1 st six pages of passport. (Photocopy of document must be certified as “Original seen/sighted”).

Copy of work permit/service contract/proof of self employment or business / copy of residence permit.

Photograph/s of the signatory/ies/ account holders duly attested by the introducer.

Documented proof of address verification to be retained with the mandate. This is also applicable for;

For accounts operated by Power of Attorney / authority holder, identify evidence for account holder and the power of attorney / authority holder.

To open an account when the person not being present personally i.e. in a non-face to face scenario is to obtain at least one additional form of evidence (e.g. copy of utility bills/bank statements/tax clearance certificate/employer letter/home visit) over and above what would have been obtained in the corresponding face to face situation.

Local Legal & Compliance should be consulted, in case of doubt on the acceptable identification evidence for a particular customer type.

‘Welcome & follow-up letter’ as part of additional address verification.

Completed KYC template (Appendix- 1 & Appendix- 1A for signatories authorized by third party mandate or power of attorney).

Resident Foreign Currency Deposit Account

(Foreign nationals, Bangladeshi nationals residing abroad or those having dual nationality are eligible to open and maintain NFCD A/C.).

Complete Account opening Form signed by the account holder/s and introduced by an existing customer who has a relationship with us at least for 6 months.

Copy of 1 st six pages of passport (Photocopy of document must be certified as “Original seen/sighted”)

Photographs of the signatory/ies / account holders dully attested by the introducer.

Copy of work permit/service contract /proof of self-employment or business / copy of ID card/ copy of residence permit.

Documented proof of address verification to be retained with the mandate. This is also applicable for;

For accounts operated by Power of Attorney/ authority holder, identify evidence for account holder and the power of attorney/authority holder.

To open an account when the person not being present personally i.e. in a non-face to face scenario is to obtain at least one additional form of evidence (e.g. copy of utility bills/bank statements/tax clearance certificate/employer letter/home visit) over and above what would have statements/tax clearance certificate/employer letter/home visit) over and above what would have been obtained in the corresponding face to face situation.

Local Legal & Compliance should be consulted, in case of doubt on the acceptable identification evidence for a particular customer type.

‘Welcome & follow-up letter’ as part of additional address verification.

Completed KYC template (Appendix- 1 & Appendix- 1A for signatories authorized by third party mandate or power of attorney).

Travelers’ Endorsement (Cash and Travelers Cheque)

Remittance of Foreign Currency

Import and Export Transaction

Foreign Exchange Dealing

Purchase of Foreign Currency Drafts, Cheques, Travelers Cheques

Wage Earner’s Development Bond

Initially the following branches offer Locker Services

I. Principal Branch, Dhaka Cantonment, Dhaka.

II. Dhanmondi Branch, BDR Gate 4, Peelkhana, Dhanmondi , Dhaka 1209

III. Gulshan Corporate Branch, 110 Gulshan Avenue, Gulshan-2, Dhaka 1212

IV. Chittagong Cantonment Branch, Chittagong Cantonment, Chittagong.

Size Rent (yearly)
Big Tk. 1500.00
Medium Tk. 900.00
Small Tk. 600.00

Tele Banking

Tele Banking at Principal Branch, Dhaka Cantonment. You don’t need to visit the branch. You will have the convenience of requesting the services mentioned below.

· Balance Enquiry

· Exchange Rate Enquiry

· Request for Account Statements

· Enquiry on our Products & Services

· Change of Account Address

· Renewal of Fixed Deposit

· Account Opening Assistance

Interest rates on loans and advances of the bank

Interest rates on loans and advances of the Bank
Particulars of sector Lending rate of interest % P.A
Agricultural/Agrobased industry 9.00-10.00
Term loan of large scale & medium scale industries 11.00-12.50
Working Capital :
c) Jute Industries 9
d) Others
Export Finance :
c) Jute & Jute Products 7
d) Other Exports
Term Loan :
a) Small & Cottage Industries 10.00-11.00
b) Urban Housing 12
(Residential) under scheme
c) Urban Housing 13
(Commercial)
d) Micro Credit 12
e) Small Project Loan 11
f) Transport Loan, Loan against Work Order and Brick Manufacturing 12.00-13.00
g) Consumer Durable Loan Scheme (for 1 year term) 12
h) Consumer Durable Loan Scheme (for 2 years term) 12
i) Car & Marriage Loan (Scheme) 12
Loan against FDR issued from TBL 2% above FDR rate
Loan against pledge of WEDB / ICB 11
Unit/PSP / BSP/ FDR of other Banks
Other Loans 11.00-13.00

INTEREST RATES ON DEPOSITS OF THE BANK

Interest rates of the Deposit of the Bank
Type of Deposit Period Rate of Interest per Annum
Savings 5% (daily product basis)
STD 4%
FDR 1 month (for any amount) 10%
FDR 3 months (any amount less than Tk. 5 Crore) 9.50%
FDR 6 months (any amount less than Tk. 5 Crore) 9.75%
FDR 1 year and above (any amount less than Tk. 5 Crore) 10.00%
FDR 3 months (any amount Tk. 5 crore and above but less than TK. 10 crore) 9.75%
FDR 6 months (any amount Tk. 5 crore and above but less than Tk. 10 crore) 10.00%
FDR 1 year and above (any amount Tk. 5 crore and above but less than Tk. 10 crore) 10.25%
FDR 3 months (any amount Tk. 10 Crore and above but less than Tk.25.00 crore) 10%
FDR 6 months (any amount Tk. 10 Crore and above but less than Tk.25.00 crore 10.25%
FDR 1 year and above (any amount Tk. 10 Crore and above)but less than Tk.25.00 crore 10.50%
FDR 03 months (any amount Tk. 25 Crore and above) 10.25%
FDR 06 months (any amount Tk. 25 Crore and above) 10.50%
FDR 1 year and above (any amount Tk. 25 Crore and above) 10.75%

Financial Highlights of The Trust Bank Limited

As on December 31, 2004

SL. PARTICULAR FOR THE YEAR 2004
1. Deposit 9,040,183,740
2. Advance 6,804,448,553
3. Total Import L/C 5,755,000,000
4. Total Export L/C 907,600,000
5. Foreign Remittance 19.66
6. Profit after Tax & Provision 216,384,186
7. No. of Employee 276
8. Earning per share 44.16
9. Number of Branches 15
10. Price Earning Ratio 2.26%

Social Commitment and Future Prospect

This bank has stepped into 9th year of its banking operations so still at its infantile stage but within a short span of time, consolidated its position with all its inherent strength and weakness. This bank would continue to keep its commitment towards societal progress by participating in such programs in future. It would stand by the people through philanthropic activities whenever any crisis and disaster confront them. It will be diversified in the days ahead of the management as they are planning to award students of exceptional academic performance with scholarships in different educational institutions. The TBL’s management expect to launch soon school banking by extending their services, which would encourage parsimony in the students. It would also help in the creation of savings, which could be utilized for pursuing higher studies in future.

The bank is focused on securing quality business. The management is optimistic that the volume of business would continue to increase in the coming years through their pragmatic and customer friendly policies in line with their attempt to open some more branches in the commercially important places of the country. The management and the workforce are properly attuned to take on newer challenges with a view to obtaining high level of performance towards attainment of higher profitability for the bank.

Analysis of financial Review

Credit Deposit ratio

The banks credit deposit ratio is good and it seems that it has improved its performance on this issue from previous month as the ration decreases from 97.21% from 75.25%.

Amount of Classified loans

The bank’s amount of classified loan is less comparatively any other new banks. It shows the strength of human resource, their analysis of financial decision and their recovery power. For the current year it is 1.47 whereas the last year it was 2.

Cost of Fund

Cost of fund is 9.3 for the year 2004 and 8.27 for the year 2003. though it seems that the cost increased but its not increased yet. It’s the normal one as Bangladesh bank imposes some interest.

Return on Investment

The Bank’s ROI is 23%. This shows the most sustainability of the company. And it is 8% more than the previous year.

Return on Asset

The Bank’s ROA is almost doubled than the previous year. It is 2.17 for the year 2004.

Findings

In the Trust Bank Limited, I have the opportunity to watch the banking system and the way of delivering the services to the clients in different departments. I also got some extra experiences by visiting and interviewing personnel and staffs of other branches of TBL. The services and the efforts of the executives and staffs engage in their jobs were competitive to other banks and with the efforts this bank can able to attract the clients and create a trust towards this bank. Even though I have got some noticeable findings both positive and negative for The Trust bank Limited. I made some recommendations also which are completely to my personal view.

The findings I can able to gather are given below under strengths, weaknesses.

þ Strengths

Ø Positive support by the sponsors in various forms deposit growth, asset booking, and recovery and cost savings.

Ø Public has the confidence about the stability of this bank.

Ø The sponsor of this bank is a welfare organization (Army welfare Trust).

Ø This bank has got the strengths to built-up capital base when required.

Ø It got the potential for financial strength of a commercial bank like a nationalized bank.

Ø The specialized executives are well trained and experienced.

Ø Newly setup branches are quite attractive and specious with adequate manpower.

þ Weaknesses

Ø TBL doesn’t have full time cheque issuer for the clients rather; the account opening officers has to do it. It causes delay to give cheque book to the respective clients just quickly.

Ø Dependence on fewer regular clients that can be a threat to the bank.

Ø The Trust Bank Limited hasn’t able to setup proper network system among the branches.

Ø TBL is not providing the credit card facility that is quite available in the banking arena.

Ø This bank cannot introduce the ATM card facility yet, it is important in the new era of banking service.

Ø The software used for the bank; in some area it got some problems.

Ø The products of this bank are not sufficient as to the other rival banks which attract the mass people to this bank.

Ø The advertising and promotional activities of this bank are very little that cause little awareness among the people about the bank.

Ø Most of the branches of TBL located in the cantonments (Presently only 3 branches are out of cantonment).

Opportunities of TBL

· Public confidence as a financial stable Bank, backed by the Bangladesh Army.

· Control and monitoring of the borrowers can be handled in a more consolidated manner. Less opportunity of bad debts

· Since we have got a secured market, so the risk factors in respect of introduction of new products are on the lower side.

· Support from sister organizations.

· More commercial branches.

Recommendation

A well-educated, skilled and enterprising workforce with wide experience in banking is a precondition for the continued growth and progress of any bank. Sustaining growth and leadership require trustworthy and dedicated workforce. As well as some other important things is to be attached with the current business facilities of the bank. The recommendation I have presented in this report is from my personal point of view with my very little experience. The recommendations are given below:

Ä Introducing New Products

In this competitive business arena, it is very important to make the clients come inside the bank, it requires attractive products. Those products could be vital instruments to increase the people come inside the bank and it will increase the business.

Ä Establishment of Network System

There is no doubt about the proper and effective network systems among the branches to increase the communication ability of the top order and among the branches as well to serve the clients promptly and to be competitive.

Ä Establish ATM Card Facility

ATM card is a very fascinating aspect of modern banking. As a modern commercial bank the Trust bank has to introduce ATM card as quickly as possible. It will help the bank to serve their clients with comfort and quickly. As well it will attract more people awareness about this bank.

Ä Improve Corporate Relationship

The trust bank has been depending on their existing clients. The corporate attachment with the companies of Trust bank is not that much significant that’s why this bank has to go forward aggressively to penetrate into the market of corporate relationships.

Ä Set More Foreign Trade Expertise

Trust Bank Limited as have seen that there is lack of foreign trade expertise. Though this department of this bank contributes a significant amount to the annual profit and as well to the national GDP this bank provide the second largest amount of foreign currency.

Ä Installation of Advanced Banking Software

To deliver prompt service and avoid error in the daily calculation this bank should install error free and advance software.

Ä Set Up New Branches outside Cantonment

Though the process of setting up new branches outside cantonment is going on, this bank management should take into account the busy highways – those are gateway to Dhaka. If the branches get an establishment besides the highways they will get business as well as it will be an advertisement of the bank.

Ä More Advertisement & Promotional Activities Are Required

The promotional activities of this bank are too little. It is the world of full competition and exposure. So it is very important to match with the pass of the other bank’s advertising and promotional activities to increase the public awareness about this bank.

Ä Introduce Islamic Banking Branches

Now-a-days Islamic banking is a new phenomenon for the banking business. People of Bangladesh have tremendous influence on Islamic issues. So to increase the market share and for better business and to be competitive, this bank can setup some Islamic banking branches in the country.

With these above mentioned recommendations I just like to add some other suggestions that are about the foreign trade department.

· Setup of foreign trade branch in the commercial places.

· Strengthening the electric banking services.

· Equip the processing unit with workforce and technology.

· Continuation of launching new products and services to meet the diversified needs of the clients.

Conclusion

The banking sector of Bangladesh is passing thorough a tremendous reform under the economic deregulation and opening up the economy. Currently this sector is becoming extremely competitive with the arrival of multinational banks as well as emerging and technological infrastructure, effective foreign trade management, higher performance level and utmost customer satisfaction.