Prime Bank Limited
Historical Background:
Prime Bank Limited is among the best of Bangladeshi banks which was incorporated in 12th February, 1995 by a group of entrepreneurs. The bank aims to be the ‘most efficient bank in Bangladesh in terms of customer service, profitability and technological abilities. The bank operates as a scheduled bank under banking license issued by Bangladesh Bank, the central Bank of the country on April, 17, 1995 through opening of its Motijheel branch at Adamjee Court Annex Building, Motijheel Commercial Area, and Dhaka-1000.
The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitions after achieving success in all areas of business operation. The growth of the deposit is growing fast. The deposits balance of PDL reached the level of Tk. 70.5 billion during 2007 from Tk. 54.7 billion of previous years. The growth rate is 28.85 percent. And this was possible due to superior customer service delivery at the branch level, expansion of branch network to rural areas where foreign remittance flow is significant.
The Prime Bank Limited, held the third position among the PCBs (Public commercial Bank), earning Tk. 1.93 billion as operating profit during the six months period of June-08 against tk. 1.55 billion of the corresponding periods of the previous year. So, the growth of profit position of the bank is increases 22.09% percent.
At present, the bank has a network of 62 branches strategically located in different cities. All the branches are functioning in computerized environment.
The principal activities of the Bank are banking and related businesses. The banking business include deposits taking, cash withdrawal, extending credit to corporate organization, retail and small and medium enterprise, trade financing, project financing, lease and hire purchase financing, issuance of local and international credit cards etc. The mode of banking includes conventional and Islamic banking. The services are provided through both traditional and modern products. It also provides investment banking and advisory services under the license issued by Securities and Exchange Commission, Bangladesh. Its Subsidiary at Singapore is engaged in providing remittances facilities to expatriate Bangladeshis. Through its Off-shore branch it provides banking business involving Non-resident foreign currency denominated assets and liabilities.
Board of Directors
- Azam J Chowdhury
Chairman, Board of Directors
- Mohammad Aminul Haque
Chairman, Executive Committee
- Capt. Imam Anwar Hossain
Chairman, Audit Committee
- Quazi Sirazul Islam
Vice Chairman, Executive Committee
- Vice Chairperson
Shanaz Quashem
Hasina Khan
- Directors:
Razia Rahman
Ferdousi Islam
Qazi Saleemul Haq
Nafis Sikder
Saheda Pervin Trisha
Mohammad Delwar Hossain
- Maksudur Rahman Sarkar
Independent Director
- M.Shahjahan Bhuiyan
Managing Director
Corporate Information:
· Memorandum and Articles of Association signed by the sponsors
05.02.1995
· Incorporation of the company- 12.02.1995
· Certificate of commencement of Business 12.02.1995
· License issued by Bangladesh bank- 20.02.1995
· License issued for opening the first Branch, Motijheel- 08.04.1995
· Formal launching of the Bank- 17.04.1995
· Commencement of Business from the Motijheel Branch- 17.04.1995
· Commencement of Islami Banking Business from IBB, Dilkusha-
18.12.1995
· Initial Public offerings (IPO)
– Publication of prospectus- 29.08.1999
– Subscription opened- 09.09.1999
– Subscription closed- 22.09.1999
· Listed with Dhaka Stock Exchange Limited- 27.03.2000
· Listed with Chittagong Stock Exchange Limited- 15.11.1999
· Trading of shares on Dhaka Stock Exchange Limited 29.03.2000
· Trading of shares on Chittagong Stock Exchange Limited 29.03.2000
· Dividend declared in the 5th AGM (First after the IPO)- 14.03.2000
· Registered as Merchant Banker with securities and Exchange commission-
29.03.2001
· License issued from Bangladesh Bank as Primary Dealer- 11.12.2003
· Registered as Depository participant of CDBL- 29.03.2004
· Trading of shares started in Demat form in stock exchanges- 15.06.2004
· Agreement with Tremens for core Banking Software T24- 30.06.2005
· Incorporation of Prime Exchange Co. Pte. Ltd. Fully owned subsidiary of (PBL)- 06.01.2006
· Prime Exchange Co. Pte. Ltd. formally started business 08.07.2006
· Opening of Off-shore Banking Unit at DEPZ, Savar, Dhaka 15.03.2007
2.3 Vision of the bank:
To be the best private commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.
Mission of the Bank
The two missions of Prime Bank Limited are:
· To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure.
· Continuous improvement in our business policies and procedures through integration of technology at all levels.
Managerial Hierarchy of PBL
| Chairman |
| Board of Directors |
| Executive Committee |
| Managing Director |
| Additional Managing Director |
| Senior Executive Vice President |
| Executive Vice President |
| Senior Vice President |
| Vice President |
| Senior Assistant Vice President |
| Assistant Vise President |
| First Assistant Vise President |
| Senior Executive Officer |
| Executive Officer |
| Principal Officer |
| Senior Officer |
| Junior Officer |
| Assistant Officer |
| Management trainee |
| Trainee Assistant |
Highlights (Taka in million)
| Sl. No. | Particulars | 2007 | 2006 |
| 01 | Paid-up capital | 2,275.00 | 1,750.00 |
| 02 | Total capital | 6,382.60 | 4,409.21 |
| 03 | Capital surplus/ (deficit) | 834.13 | 420.08 |
| 04 | Total assets | 79,588.43 | 60,899.48 |
| 05 | Total deposits | 70,512.37 | 54,724.08 |
| 06 | Total loans and advances/ investments | 57,683.02 | 45,010.22 |
| 07 | Total contingent liabilities and commitments | 33,088.73 | 27,929.55 |
| 08 | Credit deposit ration | 82% | 82% |
| 09 | Percentage of classified loans/ investments against total loans and advances/ investments | 1.35% | 0.82% |
| 10 | Profit after tax and provision | 1,400.66 | 1,051.89 |
| 11 | Amount of classified loans/ investment during current year | 777.22 | 367.15 |
| 12 | Provisions kept against classified loans/ investments | 478.40 | 308.52 |
| 13 | Provision surplus/ (deficit) against classified loans/ investments | 316.79 | 94.81 |
| 14 | Cost of fund | 8.41% | 8.15% |
| 15 | Interest earning assets | 72,798.51 | 55,458.31 |
| 16 | Non-interest earning assets | 6,789.92 | 5,441.16 |
| 17 | Return on investment (ROI) | 12.60% | 7.12% |
| 18 | Return on assets (ROA) | 1.99% | 2.05% |
| 19 | Income from investment | 1,294.21 | 419.50 |
| 20 | Earnings per share (Taka) | 61.57 | 46.24 |
| 21 | Net income per share (Taka) | 61.57 | 46.24 |
| 22 | Price earning ratio (times) | 15.00 | 8.80 |
Market position of Prime Bank Ltd. (Taka in Crore)
| Sl. No. | Name of the Banks | Deposit | Advance | Profit |
| 01 | Islami Bang Bangladesh Limited | 16,400.00 | 17,700.00 | 550.00 |
| 02 | Prime Bank Limited | 7,054.12 | 2,761.30 | 350.72 |
| 03 | AB Bank Limited | 5,288.00 | 4,037.00 | 335.00 |
| 04 | Pubali Bank Limited | 5,801.00 | 5,058.00 | 0.6.00 |
| 05 | Southeast Bank Limited | 5,648.00 | 4,753.00 | 291.00 |
| 06 | National Bank Limited | 4,400.00 | 3,200.00 | 290.00 |
| 07 | United Commercial Bank Limited | 4,230.00 | 3,757.00 | 215.00 |
| 08 | Dhaka Bank Limited | 4,450.00 | 3,997.00 | 205.00 |
| 09 | IFIC Bank Limited | 2,989.00 | 2,833.00 | 202.00 |
| 10 | BRAC Bank Limited | 3,741.00 | 3,247.00 | 192.00 |
| 11 | Eastern Bank Limited | 2,200.00 | 2,970.00 | 189.00 |
| 12 | NCC Bank Limited | 3,575.00 | 3,266.00 | 175.00 |
| 13 | Mercantile Bank Limited | 3,632.00 | 3,238.00 | 160.00 |
| 14 | Bank Asia Limited | 4,450.00 | 3,997.00 | 160.00 |
| 15 | Dutch-Bangla Bank Limited | 4,208.00 | 2,988.00 | 150.00 |
| 16 | Uttara Bank Limited | 4,200.00 | 2,650.00 | 150.00 |
| 17 | EXIM Bank Limited | 4,158.00 | 4,019.00 | 140.00 |
| 18 | BASIC Bank Limited | 3,035.00 | 2,210.00 | 132.00 |
| 19 | Shahjalal Islami Bank Limited | 2,262.00 | 2,062.00 | 130.00 |
| 20 | The Premier Bank Limited | 2,714.00 | 2,368.00 | 100.75 |
| 21 | Mutual Trust Bank Limited | 2,377.00 | 2,227.00 | 100.00 |
| 22 | ONE Bank Limited | 2,440.00 | 1,968.00 | 96.00 |
| 23 | Standard Bank Limited | 1,930.00 | 1,730.00 | 90.00 |
| 24 | Jamuna Bank Limited | 1,968.00 | 1,624.00 | 90.00 |
| 25 | The Trust Bank Limited | 2,785.00 | 1,800.00 | 86.00 |
| 26 | Al-Arafah Islami Bank Limited | 2,433.00 | 2,290.00 | 80.00 |
| 27 | Social Investment Bank Limited | 1,970.00 | 1,688.00 | 65.00 |
| 28 | First Security Bank Limited | 2,350.00 | 1,925.00 | 33.00 |
Banani Branch of Prime Bank Limited
2.8.1 A brief profile of Prime Bank, Banani Branch:
Date of Opening: August 27, 2003.
Manager: Mr.QuaziA.S.M. Anisul Kabir, Executive Vice President.
Manager of Operation: Mr. Wali Ul Morshed, Assistant Vice President.
Credit In-charge: Mr. Syed Delwar Hossan, First Assistant Vice President.
Foreign Exchange In-charge: Mr. Ali Md. Nurul Huda, First Assistant Vice President.
General Banking In-charge: Mr. Md. Humayun Kabir, Executive Officer.
Total number of Employee: 33
Address of the Branch: House # 62, Block-E, Kamal Ataturk Avenue, Banani, Dhaka-1212.
Department of Banani Branch:
There are three department exist at Banani Branch of Prime Bank Limited.
These departments are:
> General Banking Department.
> Credit Department.
> Foreign Exchange Department.
Managerial Hierarchy of Banani Branch
Executive Vice President (E.V.P)
â
Assistant Vice President (A.V.P)
â
First Ass. Vice President (F.A.V.P.)
â
Seminar Executive Officer (S.E.O)
â
Executive Officer (E.O.)
â
Principal Officer (P.O)
â
Seminar Officer (S.O)
â
Junior Officer (J.U)
â
Assistant Officer (A.O)
â
Management Trainee (M.T)
â
Trainee Assistant (T.A)
Prime Bank Limited, Banani Branch Flow Chart
General Banking
General Banking department performs the majority functions of a bank. It is the core department.
In fact, bank operates with the people’s money. And this process starts with the General Banking department. The activities of the General Banking Department of PBL are mainly divided into the following categories:
- Account Opening Section,
- Local Remittance Section,
- Online Branch Banking Section,
- One Stop Utility Services Section,
- Deposit Schemes Section,
- Clearing Section,
- Collection Section,
- Cash Section,
- Accounts Section,
Account Opening Section:
To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers.
Types of Account:
Banani Branch has the following types of accounts:
- Current Account
- Savings Account
- Fixed Deposit Account
Procedure to open an Account:
- For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information etc.
- The prospective customer should be properly introduced by the followings:
- An existing customer of the bank.
- Officials of the bank not below the rank of Assistant Officer.
- A respectable person of the locality who is well known to the manager or authorized officer.
- Two copies of passport size photograph duly attested by the introducer.
- Signature of the prospective account holder in the account opening form and on the specimen signature card duly attested by the introducer.
- Then the concerned authority will allocate a number for the new account.
- The customer then deposit the “initial deposit” by filling up a deposit slips. Initial deposit to open a current account in PBL is Tk. 10000.00 and saving account is Tk. 5000.00.
After depositing the initial deposit, the account is considered to be opened. PBL maintains all of its accounts in computer. After depositing the initial deposit, PBL records it in the computer by giving new account number. Then it issues cheque book requisition slip by the customer. Then it distributes all relevant papers to respective department.
Activities & papers necessary for opening an account:
(A) Joint Account:
If the account is a joint account, then the joint account holder should submit a declaration and operational instructions of the account along with their signature. The declaration is –
“Any balance to the credit of the account is and shall be owned by us as joint depositors. Any liability whatsoever incurred in respect of this account shall be joint and several.”
(B) Partnership firm:
The following documents have to be submitted for preparing an account of a partnership firm:
i) Partnership deed.
ii) (a) If the partnership firm is a registered one, then one copy of registration forms.
(b) If not, then a copy of certificate from the notary public.
(C) Limited Company:
For the opening of an account of a limited company, following documents have to be submitted:
- A copy of resolution of the company that the company decided to open an account in the Prime Bank.
- Certified true copy of the Memorandum & Articles of Association of the Company.
- Certificate of Incorporation of the company for inspection and return along with a duly certified Photocopy for Bank’s records.
- Certificate from the Registrar of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. Co. for inspection and return) along with a duly certified Photocopy for Bank’s records.
- Latest copy of balance sheet.
- Extract of Resolution of the Board/General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman/Managing Director of the company.
- List of Directors with address (a latest certified copy of Form-XII).
(D) Club/Society:
Following documents have to be obtained in case of the account of the club or society:
i) Up to date list of office bearers.
ii) Certified copy of Resolution for opening and operation of account.
iii) Certified copy of Bye-Law and Regulations/Constitution.
iv) Copy of Government Approval (if registered).
(E) Cooperative Society:
Following documents have to be obtained in case of the account of Cooperative Society:
i) Copy of Bye-Law duly certified by the Co-operative Officer.
ii) Up to date list of office bearers.
iii) Resolution of the Executive Committee as regard of the account.
iv) Certified copy of Certificate of Registration issued by the registrar, Co-operative societies.
(F) Non-Govt. College / School / Madrasha / Muktab:
Following documents have to be obtained in case of the account of non-govt. college / school / madrasha / muktab:
i) Up to date list of Governing Body/Managing Committee.
ii) Copy of Resolution of the Governing Body/Managing Committee authorising opening and operation of the account duly certified by Gazetted Officer.
(G) Trustee Board:
Following documents have to be obtained in case of the account of trustee board:
i) Prior approval of the Head Office of PBL.
ii) Certified copy of Deed of Trust, up to date list of members of the Trustee Board and certified copy of the Resolution of Trustee Board to open and operate the account.
(H) Minor’s Account:
Following documents have to be obtained in case of the account of minor:
i) Putting the word “MINOR” after the title of the account.
ii) Recording of the special instruction of operation of the account.
iii) The AOF is to be filled in and signed by either the parents or the legal guardian appointed by the court of law and not by the minor.
3.2Local Remittance Section:
Local remittance is one of the main components of general banking. The activities of local remittance are —
i. Telegraphic Transfer,
ii. Demand Draft issue,
iii. Saving Certificate Issue (Sanchaypatra issue),
iv. Pay order.
· Telegraphic Transfer:
It is an order from the issuing branch to the drawee bank / branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by telex and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch.
Procedure of issuing TT:
Following procedures are followed while issuing of TT:
i) The applicant fills up the relevant parts of the prescribed application form in triplicate, duly signed the same and gives it to the GB.
ii) GB will fill up the commission part for bank’s use and request the applicant to deposit necessary cash or cheque at the cash booth.
iii) The first copy of the application form will be treated as Debit Ticket while the second copy will be treated as Credit Ticket. The third copy will be handed over to the applicant as customer’s copy.
iv) GB will prepare telex in appropriate form, sign it and send it to the telex operator for transmission of the message.
v) GB will prepare necessary advice. Debit advice is sent to the client if clients account is debited for the amount of T.T.
vi) T.T. Confirmation Advice is sent to the drawee branch.
vii) Credit Ticket (second copy of the application form) is used to credit the PBL General Account.
· Demand Draft (DD) Issue:
Sometimes customers use demand draft for the transfer of money from one place to another. For getting a demand draft, customer has to fill up an application form. The form contains date, name and address of the applicant, signature of the applicant, cheque number (if cheque is given for issuing the DD), draft number, name of the payee, name of the branch on which the DD will be drawn and the amount of the DD. The form will be duly signed by the applicant and by the authorized officer. PBL charges .15% commission on the face value of DD as service charge.
Process of issuing Local Draft:
Following procedures are followed while issuing local draft—
i) Get the application form properly filled up and signed by the applicant.
ii) Complete the lower portion of the form for the bank’s use.
iii) Calculate the total amount including the bank’s commission.
iv) If the cheque is presented for of the local draft, the officer should get the cheque duly passed for payment by the authorised person and record the particulars of local draft on the back of the cheque.
v) If the client wants to debit his account for the payment of the draft amount, the officer should get the account holder’s signature verified properly, from signature card on record of the branch and debit clients account for the total amount including commission.
vi) The first copy of the application form will be treated as Debit Ticket while the second copy will be treated as Credit Ticket and kept by the GB. The third copy is handed over to the applicant as customer’s copy.
· Pay Order:
For issuing a pay order, the client is to submit an application to GB in the prescribed form. This form should be properly filled up and signed. The procedure of the issuing pay order is similar to that of the Local Draft. For issuing pay order PBL charges commission on the following rate—
# For Tk. 1 to 100000, the commission is Tk.25.
# For Tk. 100000 to 500000, the commission s Tk. 60.
# For Tk 500000 to above, the commission is Tk. 75.
Payment of Pay Order:
The pay order is presented to the bank either through clearance or for credit to the client’s account. While payment, relative entry is given in the pay order register with the date of payment.
Online Branch Banking Section:
Prime Line:
The Bank has set up a Wide Area Network (WAN) across the country to provide Online Branch Banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank.
Under this system a client will to be able to do following type of transactions:
· Cash withdrawal from his/her account at any branch of the Bank irrespective of location.
· Cash deposit in his/her account at any branch of the Bank irrespective of location.
· Cash deposit in other’s account at any branch of the Bank irrespective of location.
· Transfer of money from his/her account with any branch of the Bank.
· Any amount can be deposited or transferred under Prime Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.
Requirement of Prime Line service:
The Clients who has account in prime bank or who will open account in prime bank and would be interested to maintain substantial deposits in Savings, Current or STD accounts, will be eligible to get Prime Line Service.
Intending and eligible clients have to apply in prescribed application form to the branch to get the online service from the bank. The client should submit two copies photographs and signature cards along with the application form.
Online Transaction Membership Fee:
Membership fee of Tk. 50/- per month for the Online Branch Banking Service.
Transaction Limit:
01. Maximum ceiling of cash withdrawal by self is Tk. 10,00,000/- (ten lac) only per transaction.
02. Maximum ceiling of cash withdrawal by third party (bearer) per transaction is below Tk…………… Only (Account holder will determine the amount).
03. Cash deposit/transfer by online transaction is unlimited.
3.3.4 Charges for Online Transaction:
01. There will be no charge for transaction within the city where the account is domiciled.
02. Fee Tk. 50/- will be realized from the customer’s account for each remote transaction (inter-city) for amount upto Tk. 1, 00,000 (one lac).
03. Fee at the rate of 0.075% will be realized from the customer’s account for each remote transaction of amount more than Tk. 1,00,000 (one lac).
| One Stop Utility Services Scheme Section: | ||||||||||||||||||||||||||
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Deposit Schemes Section:
Bank is the largest organization of mobilizing surplus domestic savings. For poverty alleviation, we need self-employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.
PBL has formulated the following Savings Schemes:
- Prime Millionaire Scheme
- Double Benefit Scheme
- Lakhopati Deposit Scheme
- House Building Deposit Scheme
- Monthly Benefit Deposit Scheme
- Contributory Saving Scheme
- Education Saving Scheme
- Fixed Deposit Scheme
- Short Term Deposit
- Foreign Currency Deposit Account
- Non-Resident Taka Account
- Non-Resident Foreign Currency Deposit Account (NFCD)
- Non-Resident Investor’s Taka Account (NITA)
Prime Millionaire Scheme
- Monthly installment shall be Tk. 12,465.00/ Tk. 7,890.00/ Tk. 4,570.00 for the tenor of 5/7/10 years respectively.
2. Terminal amount on maturity shall be Tk. 10.00 lac.
| Size of monthly deposit (in Taka.) | Investment Tenor (in Year) | After the investment Tenor the terminal value of the scheme (in Taka) | Pension size of installment according to the years invested (in Taka) |
| 12,465/- | 5 | 1,000,000/- | 21,748/- |
| 7,890/- | 7 | 1,000,000/- | 17,137/- |
| 4,570/- | 10 | 1,000,000/- | 13,786/- |
3. The depositor will have the option to choose any installment size at the time of opening of the A/C. and will not be allowed to change the size of installment afterwards.
4. The depositor will have the opportunity to take loan upto 80 percent against this deposit scheme.
5. This scheme can be opened for the minor persons.
2. Double Benefit Deposit Scheme
Silent features of this scheme are:
1. At maturity after 06 (six) years double the amount of deposit will be paid to the depositor.
2. The instrument shall be issued for 06(six) years term.
3. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiples thereof but maximum limit of Tk. 25,00,000/- (Taka twenty five lac) at a time will be acceptable under the scheme.
4. The age limit of the applicant would be 18 to 60 years.
3. Lakhopati Deposit Scheme
1. Monthly installment size, tenure and terminal value of the scheme will be as follows:
| Monthly Installment size (Taka) | Tenure | Amount to be paid after maturity (Taka) |
| 250/- | 15 years | 1,00,000/- |
| 500/- | 10 years | 1,00,000/- |
| 1,285/- | 5 years | 1,00,000/- |
| 2,400/- | 3 years | 1,00,000/- |
2. Account in the name of minors can be opened too under the scheme as per standard procedure for minor accounts.
3. Loan may be allowed up to 80% of the deposited amount against lien on the same where the deposited amount shall be at least Tk. 50,000/- and the interest rate of the loan shall be as per prevailing commercial lending rate of the bank.
4. House Building Deposit Scheme
At first Prime Bank Limited has brought this house building deposit scheme facility in Bangladesh.
The salient features of the scheme are given below:
1. The tenor of the House Building Deposit Scheme will be 5/7/10 years.
2. Minimum Equity building amount shall be Tk. 10.00 lac.
| Size of monthly deposit (in Taka.) | Investment Tenor (in Year) | After the investment Tenor the terminal value of the scheme (in Taka) | Pension size of installment according to the years invested (in Taka) |
| 4,570/- | 4,705/- | 10 | 1 |
| 7,890/- | 8,045/- | 7 | 1 |
| 12,465/- | 12,640/- | 5 | 1 |
3. The depositor will have the opportunity to take house building loan facility less than 0.25% interest rate of HBL.
4. The depositor will get the facility to pay any service charge for credit card for 1 year.
5. HBL facility shall be considered on maturity upon application upto three times the loan on compliance of loan formalities
5. Monthly Benefit Deposit Scheme
This is a Deposit Scheme where the depositor gets monthly benefit out of his deposit.
The scheme is designed for the benefit of the persons who intend to meet the monthly budge of their families for the income out of their deposit.
The salient features of the scheme are given below:
1. Deposit of Tk. 25,000.00 (Taka twenty five thousand) and multiples thereof, but maximum Tk. 25,00,000/- (Taka twenty-five lac) shall be acceptable under the scheme.
2. The Deposit shall be for a period of 5 (five) years. The Principal amount is refundable on maturity.
3. The depositor will have the opportunity to take loan facility.
6. Contributory Savings Scheme
This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term.
The scheme is designed to help the fixed income group to save money and build up a sizable fund with which they can go for some income generating venture to improve the quality of their life and or meet any future financial obligations.
The salient features of the scheme are given below:
- Minimum size of monthly installment shall be Tk. 500/- and multiples of Tk. 1000/- Maximum installment size shall be Tk. 25,000/-
- The Deposit shall be for a period of 5 years.
- Account in the name of minors can be opened too under the scheme.
- The Depositor will have the opportunity to take loan facility.
7. Education Savings Scheme
The educational expenses particularly the expense for higher education are sharply increasing day by day in our country. Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time.
The salient features of the scheme are given below:
1. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of tk. 5,00,000/- at a time will be acceptable under the scheme.
2. The instrument shall be issued for a period of 5 years term.
8. Fixed Deposit Scheme
This type of deposit should be kept for a fixed term or period. Prime Bank Limited deals with the following terms deposit.
| Sl. No. | Particulars | Interest rate | Interest rate |
| 1 | 1 (one month) | 7.50 | |
| 2 | 3 (three) months | ||
| i) | Below Tk. 1.00 ccore | 11.50% | |
| ii) | Below Tk. 5.00 crore | 12.50% | |
| iii) | Tk. 5.00 crore & above | 12.50% | |
| 3 | 6 (six) months | ||
| i) | Below Tk. 1.00 ccore | 11.50% | |
| ii) | Below Tk. 5.00 crore | 12.50% | |
| iii) | Tk. 5.00 crore & above | 12.50% | |
| 4 | 1 (one) year & above | ||
| i) | Below Tk. 1.00 ccore | 12.00% | |
| ii) | Below Tk. 5.00 crore | 12.50% | |
| iii) | Tk. 5.00 crore & above | 12.50% | |
9. Short Term Deposit
· A short term deposit (STD) account is a running account with amounts being paid into and drawn out of the account continuously.
· These accounts are called Demand Deposits or Demand Liabilities since the banker is under obligation to pay the money in such deposits on demand.
· These accounts are generally opened by Business organization, Public institution, corporate bodies.
Current interest rate on STD account is presented in the following table:
| Particulars | Interest Rate |
| Below Tk. 1 crore | 5.00% |
| Tk. 1 crore and above | 6.00% |
3.6 Clearing Section:
According to the Article 37(2) of Bangladesh Bank Order, 1972,the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the chouse drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the chouse.
The representatives of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse.
3.6.1 Activities of the Section:
(a) Preparation of Clearing Outward and Inward Lodgment and record maintenance of the same.
(b) Batch posting as and when required.
On receipt of instruments, the same is endorsed here. Then clearing section will sent IBDA to head Office for clearing purpose and on receipt of IBCA from Head Office amount is credited to customers account and vice versa. If the instrument is return then the same is given back to the customer.
3.7Collection Section:
Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. Banani Branch collects its client’s above-mentioned instruments from other branches of PBL and branches other than PBL. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of in ward bills customers account is debited for this purpose. So it place dual role as follows:
- Collecting Banker
- Paying Banker.
There is one Officer working over desk in this department.
3.7.1 Activities of the Section:
- Preparing of Outward and Inward Collection Item.
- Inter-Branch Transfer.
- Batch posting and checking as and when required.
- Other works as and when require.
Collection is done when
· Paying Bank is located out side Dhaka City.
- Paying Bank is other branches of PBL situated inside Dhaka City.
3.7.3 Commission for Collection:
Up to 1 lac ——————————————— 0.15%
Above 1 lac——————————————— 0.10%
Above 5lac ———————————————-0.05%
Maximum charge is Tk. 1200 and minimum charge is Tk.10.
3.8Accounts Section:
In banking business transactions are done every day and these transaction are to be recorded properly and systematically as the banks deal with the depositors’ money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot. Improper recording of transactions will lead to the mismatch in the debit side and credit side. To avoid these mishaps, the bank provides a separate department whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called Accounts Department.
3.8.1 Functions of Accounting Department:
We can divide the functions of accounting department into two categories. One is day-to-day task and another is periodical task.
a. Day to day functions: Here day-to-day function refers to the every day tasks. Accounting department of PBL performs the following day to day functions:
- Recording of transaction in the cashbook, general and subsidiary ledger.
- Preparing the daily position of deposit and cash.
- Making the payment of the expense of the branch.
- Recordings of inter branch fund transfer.
- Checking whether all the vouchers are correctly passed.
- Recording the voucher in the voucher register.
- Packing and maintains the total debit and total credit vouchers.
b. Periodical functions: Periodical functions of accounts department include the preparation of different weekly, fortnightly, monthly, quarterly and annual statement. The accounts department prepares the following statements:
- Monthly statement of deposits, loans and advances, profit and loss etc.
- Quarterly statement of deposits, loans and advances, profit and loss etc.
- Yearly statement of deposits, loans and advances, profit and loss etc.
- Yearly statement of classified Loans and Advances.
- Statement of Affairs.
- Yearly Budget of the Branch, etc.
Cash Section:
Cash section is a very sensitive organ of the branch and handle with extra care. Operation of this section begins at the start of the banking hour. Cash officer begins his/her transaction with taking money from the vault, known as the opening cash balance. The amount of opening cash balance is entered into a register. After whole days’ transaction, the surplus money remain in the cash counter is put back in the vault and known as the closing balance. Money is received and paid in this section.
3.9.1 Cash Receipt:
- At first the depositors fill up the Deposit in Slip. For saving account and current account same Deposit in Slip is used in this Branch.
- After filling the required deposit in slip, depositor deposits the money.
- Officers at the cash counter receives the money, count it, enter the amount of money in the register kept at the counter, seal the deposit in slip and sign on it with date and keep the banks’ part of the slip. Other part is given to the depositor.
- In this branch, i.e., Motijheel Branch, two different officers maintain two different books for entering such entries. All deposits of saving account are maintained by one officer and other accounts by another officer.
- At the end of the day entries of both of these registers are cross checked with the register kept at the cash counter to see whether the transactions are correct or not.
Cash Payment:
- When a person comes to the bank to cash a cheque, (s)he first gives it to the computer desk to know the position of the check and posting of the cheque. If the account has sufficient fund the computer in charge will post it into the computer, will sign it and seal it.
- This cheque is then sent to the concerned officer. There are two officers who verify the cheques – one for savings and similar types of account and another for current and similar types of account.
- After receiving the cheque respective officer first checks it very carefully for any kind of fraudulent activity. (S)he also checks the date of the cheque, amount in word, amount in figure and signature of the drawer.
- If the instrument is free of all kind of error the officer will ask the bearer to sign on the back of it.
- He will then put his/her initial beside the bearers’ signature. (S)he will also sign it on its face, will write down the amount by red pen.
- Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument.
- The cash officer will then enter the details of the cheque in his/her register and will pay the money to the bearer. At the end of the day these registers will be compared to ensure the correctness of the entries.
Credit Department:
Granting of advances is the primary function of a bank. A major portion of its funds is used for this purpose and this is also the major sources of bank’s income. However, lending money is not without risk and, therefore, a banker must take proper precaution in this process.
Salient features of Prime Bank Credit Policy
- Assets are built based on customer’s deposit, which should not exceed 80% of customers based deposit.
- Rate of interest is variable based on customer’s integrity and risks associated.
- Type of security varies on the basis of risks associate din credit, location, size of credit, sectors and sub sectors etc.
- Credit operations are carried out in branch through branch credit committee as per authority delegated to head of branch and through head office credit committee in respect of credit sanction authority delegated to the CEO.
- No credit should be allowed for a period not exceeding 5 years.
- Aggregate long term credit facilities shall not exceed 20% of total credit portfolio.
- Single customer’s exposure should not exceed 50% of the Bank’s capital funds.
- LRA is done is most cases.
- Assessment of volume or amount of credit properly.
- Utmost care is taken in proving loans to directors.
- Funded facility 25% of paid up capital.
Loan and advances of Prime Bank Limited covering following four areas:
- Corporate
- Small and medium enterprise
- Retail
- Credit Card.
Credit Department of Banani Branch of Prime Bank Limited can be divided in to two parts:
- Retail credit
- Corporate credit.
Retail Credit:
Modern life is full of numerous wants and desired in this customer oriented world of ours. The whole family has individual needs. In a developing country like Bangladesh the limited and fixed income group especially service holds are not capable of fulfilling all the desires. For this reason there are many banks specially the private banks introduces a new credit scheme named consumer credit sc