1.1.

Introduction

CHAPTER 1

ORIENTATION OF THE STUDY

Practice makes a man perfect- the proverbs tell us about to practice those procedures that we
have learned throughout the course. Theoretical knowledge does not highlight the reality as
clearly as practical knowledge. Theoretical knowledge is a guideline but practical knowledge is
experience oriented. But both of them are equally important.
This report comprises a brief study on IFIC Bank Ltd. The report is distributed in many parts
according to nature and requirement of organization and according to the instruction.
The purpose of study is to develop skills through learning various aspects of organization. The
study enables to get command on bookish knowledge through practical approach and to
understand the difference in both approaches.

1.2. Origin of the Report

The report is intent for the term paper of the course 'Banking Law and Practise '.In the process of
making term paper for the course our group (Prefects) collected information from IFIC bank.
This report originates to fulfill the requirement of studying BBA Program at University of
Dhaka. This program has been designed to facilitate the students with basic theoretical and
practical knowledge. Since the report making is an integrated, practical and theoretical method
of learning, this program is required to have practical exposure in any kind of bank.

1.3. Background of the Study

2

Banks are the life-blood of modern economy. Banks are established to earn profit and help
economic and financial activities so as to help economic development of a country. In such a
context, the main business of Banking is to take deposits from customers and sanction credit to
the borrowers. Thus the Banks act as financial intermediaries. As a service industry, the Banks
are customers oriented. Customers are the driven power of a Bank and it earns profit by serving
customers. In general, he, who has an account in a Bank, may be treated as a customer.
In broad sense, customers may be seen from the two wings Depositors and Borrowers. Beside
these, other short-term served customers may exist in a Bank. However, as the Banking area is
very hard and competitive, so in order to survive and successfully compete with other Banks, a
Bank not only have to serve but have to nicely and effectively serve its customers. Now, in
Bangladesh more than 50 scheduled Banks are operating their activities. Among those the IFIC
Bank Ltd. has positioned well & would be able to create a strong confidence in banking sector.
IFIC Bank Ltd is one of the leading private banks in Bangladesh. From its inception it has been
playing a very strong role in the overall development of the country. Our task was to provide a
report on the products and services of the bank. So we decided to observe the functions and
performance of this section. We have also tried to give so much recommendation for the
betterment of the performance of General Banking System of IFIC Bank Ltd.

1.4. Objective of the Study

1.4.1 GENERAL OBJECTIVES:
To fulfill the specific requirement of the course.
To gain practical experience and view the application of theoretical knowledge in the real
life.
1.4.2

SPECIFIC OOBJECTIVES:
To know the relevant rules, regulations, deposit loan schemes, credit policies of the bank.
To gather knowledge about banking activities
To identify the documentation & guideline for the potential credit and deposit customers.

1.5. Methodology of the Study

For preparing this report, we have undergone group discussion, collected data and sent some
questionnaires to the selected Officers and interviewed with some of them. We also studied
different circulars and files of the bank.
We hope these criteria will be enough to find out different picture of financial performance of the
selected bank (IFIC Bank).

1.6 SOURCE OF DATA

We have emphasized on the practical observation though this report is prepared based on primary
and secondary data. While preparing the report, we have taken information from the following
sources:
1.6.1 PRIMARY SOURCES
Observation of banking activities.
Conversation with the respective executives & officers of the Bank.
Practical work exposures from the different desks of the IFIC Bank, Nayapaltan Branch.
1.6.2 SECONDARY SOURCES
Periodicals published by Bangladesh Bank.
Website of IFIC Bank Ltd.
Annual report of the IFIC Bank.
Different lending forms and schemes used by the Bank.

1.7 Limitations of the Study

This study is subject to the following limitations
First of all the time limitation, it is not possible to gather all the information about the
banking activities in a month time.
Difficulty in gaining accesses to financial sector.
Non-availability of the most recent statistical data.
Some secrecy was maintained in the bank and I was not exposed to activities.

CHAPTER 2

2.1. Background of the Bank

OVERVIEW OF THE
ORGANIZATION

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking
company incorporated in the Peoples Republic of Bangladesh with limited liability. It was set up
in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private
sector with the objective of working as a finance company within the country and setting up joint
venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the
private sector, IFIC was converted into a full-fledged commercial bank. The Government of the
Peoples Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors
and Sponsors having vast experience in the field of trade and commerce own 8.62% of the share
capital and the rest is held by the general public.

2.2. Board of Directors

Chairman
Mr. Salman F. Rahman
Directors
Mr. Mohammad LutfarRahman
Mr. Monirul Islam(independent)
Mr. Syed AnisulHuq(independent)
Mr. Mohammed Nayem Syed(independent)
Mr. Jalal Ahmed
Mr. A.R.M. NazmusSakib
Mr. ArijitChowdhury
Mr. M. Shah AlamSarwar(Managing Director and CEO)
Managing Director
Mr. M Shah AlamSarwar
7

2.3. Vision of the Bank

The IFIC Bank wants to be the preferred service provider through, innovative, sustainable and
inclusive growth and deliver the best in class value to all stakeholders.

2.4. Mission of the Bank

Their mission is to provide service to our clients with the help of a skilled and dedicated
workforce whose creative talents, innovative actions and competitive edge make their position
unique in giving quality service to all institutions and individuals that they care for.
They are committed to the welfare and economic prosperity of the people and the community, for
IFIC derive from them their inspiration and drive for onward progress to prosperity. In an
intensely competitive and complex financial and business environment, the IFIC particularly
focus on growth and profitability of all concerned.

2.5. Hierarchy of the Organization

8

2.6. Products and Services

9

IFIC Bank Limited offers various products and services. The bank has highly
qualified professional staffs that have the capacity to manage and meet all the
requirements of the bank. Every account is assigned to an account manager who
personally takes care of it and is available for discussion and inquiries, whether on
writes, telephones or calls. Here is a diagram of product and services of IFIC Bank
Ltd.:

2.7. DEPOSIT PRODUCT AND LOAN SCHEMES

10

Deposit Product

Loan schemes

Current Deposit Account (CD)

Secured Over Draft (SOD) General

Saving Deposit (SB)

House Building Loan (Staff)

Short Term Deposit Account

(STD)

Term Loan (Industrial)

Fixed Deposit Receipt (FDR)

Consumer Credit Scheme (CCS)

Pension Saving Scheme (PSS)

Easy Loan (Means secured personal loan to

meet personal financial requirement)

Monthly Income Scheme (MIS)

Consumer Durable Loan

Special Account

Education Loan
Thikana or House Building Loan
Flexi Loan
Peshajeebi Loan
Auto Loan
SME Loan

2.8. Achievement of the Bank

IFIC Bank is listed with Dhaka & Chittagong Stock Exchange Limited as a publicly
quoted company for its A Class ordinary shares.
11

 The Bank maintained a Capital Adequacy ratio of 13.50% against minimum Capital
Requirement of 10% as per BASEL I.
Credit Rating: The Bank is rated A in the long term & ST-2 in the short term.

IFIC got Money Gram Award-2008 for Excellence in Customer Service.

2.9. Capital and Reserve

The authorized capital of the IFIC Bank was BDT 20,000.00 million and the paid-up capital
stood at BDT 3,806.52 million as on 31 December 2013. A break-up of the capital & reserves
inclusive of statutory reserve for the fulfillment of provisions under the Bank Company Act 1991
is given below:
Nature of Capital & Reserve
Paid up Capital

BDT in Million
3,806.52

Statutory Reserves

3,374.08

Other Reserve

187.13

Retained Surplus

1,730.12

Total Capital & Reserves

9,097.85

Table 3: Total Reserves

2.10. Profitability Position of the Bank

12

Profitability position of the bank for last 5 years is given below:

13

2.11. Total Assets Position of the Bank

Total Assets position of the bank for last 5 years is given below:

2.12. Total liability & shareholder equity

position of the bank

14

2.13 Credit Rating of IFIC Bank

IFIC Bank
AA+ Ltd.
Rating Reaffirmed

Credit rating Agency of Bangladesh Limited (CRAB) has affirmed the rating of IFIC Bank
Limited based on audited financial statements as on 31st December 2013 and other relevant
information as well as some operational updates of 2014. CRAB Has retained both long term and
short term ratings same last year.

Rating
Long
Term

2011
AA2

2012
AA2

Short
Term

ST-2

ST-2

Definition of Rating
Commercial Banks Rated AA2 have very
strong Capacity to meet financial commitments.
They differ from the highest-rated Commercial
Banks only to a small degree.AA2 is judged
to be of very high quality and is subject to very
low credit risk.
Commercial Banks rated ST-2 are considered to
have strong capacity for timely repayment and
are characterized with commendable position in
terms of liquidity, internal fund generation and
access to alternative sources of fund is
outstanding.

15

CHAPTER 3

PRODUCTS AND SERVICES OF

IFIC BANK LTD.

16

3.1 INTRODUCTION
3.1 INTRODUCTION
During collecting information from IFIC Bank Limited at Naya Palton Branch, we studied their
General Banking procedures. General Banking is the starting point and main function of all the
banking operations. It is the department which provides day-to-day service to the customers. It is
associated with financial transactions to facilitate customer service. However, there are other
departments like - clearing, financial control and accounts, computer to give both of them back
office support and to maintain regular and accurate records.

FUNCTIONS OF GENERAL BANKING

This department maintains following functions:

Accounts opening section.

Cash section

Test arrangement

FDR

Remittance section.

Clearing section.

Accounts section.

Establishment.

ACCOUNTS OPENING SECTION

This section opens different types of accounts for their valued customers. Selection of customer
is very important for the bank because banks success and failure largely depends on their
17

customers. If customers are bad, they create fraud and forgery by their account with bank and
this destroys the goodwill of the bank. So, this section takes extreme caution in selecting its
valued customer.

3.2 TYPES OF ACCOUNTS

Accounts can be classified into two types:

3.2.1 CURRENT ACCOUNT (CD)

Current account is convenient for the business persons who need frequent transaction. In case of
Current Account, no interest is given to the account holder. It is a running and active account.
There is no restriction on the number and the amount of withdrawals from a current account.
Overdraft facility is provided for the customer.

Initial deposit: TK. 5000

Maintenance fee: TK.500 (half yearly)
Closing fee: TK. 200
18

Documentation: Proprietorship
Attested photocopy of Trade License
Two copies of passport size photographs of account holder
Signed and rubber stamp seal of the client
Photocopy of National ID Card.

Documentation: Partnership
Attested photocopy of Trade License
Two copies of passport size photographs of account holder
Photocopy of National ID Card
Attested photocopy of Partnership deed

Documentation: Private Limited Company

Attested photocopy of Trade License
Two copies of passport size photographs of directors
Photocopy of National ID Card
Certified copies of Memorandum and Articles of Associations
List of directors as per return of Joint Stock Company with signature
Resolution for opening account with the bank

Documentation: Public Limited Company

Attested photocopy of Trade License
Two copies of passport size photographs of directors
Photocopy of National ID Card
Certified copies of Memorandum and Articles of Associations
19

 Certificate of Incorporation
Certificate of Commencement of business and copy of TIN cert IFIC ate
List of directors as per return of Joint Stock Company with signature
Resolution for opening account with the bank

Closing of Current Account

A customer's account with a banker may be closed for the following circumstances:
(a)The customer may inform the banker in writing of his/her intension to close the
account.
(b) The banker may itself ask the customer to close the account when the banker finds
that the account is not profitable for the bank.
Then bank and customer perform some formalities to close the account.

3.2.2 SAVING DEPOSIT ACCOUNT (SB)

Saving Accounts are especially for the middle-income groups who are earning limited income
and have the tendency to save to meet their future need and also to earn some interest on their
savings. Both the elements of time and demand deposit are present in this account.
Interest rate: 5.5%

Initial deposit: for urban-TK.5000 and for rural-2000.

Closing fee: TK. 200.

Documentations
For opening a savings account these documentations are required:
Two copies of passport size photographs
Photocopy of National ID card
20

 Introductory reference.
One copy photograph of Nominee with the photocopy of National ID card
Closing Formalities of Savings Account
Formalities for savings account opening and closing are same as current account.

3.2.3 SPECIAL ACCOUNTS

SPECIAL ACCOUNTS
Double Return Deposit Scheme (DRDS)

IFIC Bank is pleased to offer 5 Years (Proposed) - Double Return Deposit

Scheme (DRDS) with special feature:
Minimum
Deposit
Tk. 25,000

Term

Benefit

5 Yrs. Double return after 5 Years.

Proposed
Table 4: Double Return Deposit Scheme

Special Feature
If customer requires to have your money back after completion of 1(one) year, IFIC will not
deprive him/her from interest for pre-encashment. For each completed year and subsequent
completed years he/she will get interest @8.50% p.a. (proposed).
Credit Facility: Customer can avail Credit facility up to max. 90% of the deposited amount.

21

Three Years Deposit Plan (3YDP)

It is a long term fixed deposit account with special feature:
Interest rate: 8.5%
Duration: 3 years.
Special Feature
If customer requires to have his money back after completion of 6(six) months, IFIC will not
deprive his from interest for pre-encashment. For each completed 6(six) months and subsequent
completion of 6(six) months customer will get interest @8.50% p.a.
Credit Facility
Customer can avail credit facility up to max. 90% of the deposited amount.

Payroll Savings Account

Payroll Savings Account is for salaried individual and company opens it for their employees.
Initial deposit: Not required
Interest rate: 9% p.a. calculated on daily balance and paid at month.

Maintenance Fee: Not required.

School Savings Plan

Easy monthly installment based scheme account for school going students.
Interest Rate: 10%

22

Duration: 5 years & 7 years.

Scholarship Facility: Scholarship facility is given for both SSC & HSC account holder (if he
gets GPA 5) of TK.7500.

Womens Savings Account

A special kind of savings account for womens, where interest will be calculated on daily basis
and paid at month end.
Initial deposit: TK. 1000
Interest rate: 8% p.a
Maintenance Fee: As per BB guideline.
Value offer: Accountholders get a gift coupon worth TK. 550 from Magic Mirror.

Super Savings Plus

A special kind of savings account for individual customer, calculates interest on the daily balance
and pays at month end.
Initial deposit: For urban: TK.10000
For rural: TK.5000
Interest rate: From 10000 to 50000- 7%
Above TK. 50000-8%
Insurance Coverage: up to TK.500000.
Maintenance fee: Not necessary.
Services: Provide debit card and Cheque book facility.

23

SHORT-TERM-DEPOSIT (STD)
Interest bearing checking account for individuals. It is also a time deposit account. The
formalities for opening of this account are same to those required for current account. The only
difference is that 21(Twenty one) days notice is to be given for withdrawal of any sum of money
from Account.
Initial deposit: TK.5000
Interest rate: 4%

3.2.4 FIXED DEPOSIT RECEIPT (FDR)

A certain amount of money is deposited for a specific time and money can not be drawn before
the expiry of the fixed period. It is purely a time deposit account. The bank does not maintain
cash reserves against these deposits and therefore the bank offers higher rates of interest on such
deposits. Interest is paid at rate determined by the length of the period for, with the deposit is
made. Obviously, the longer is the period of deposit, the higher is the rate of interest.
Interest rate: Maximum 12.50% (variable)

Loan

facility: Allows up to 95 %

FDR (Tenure 3 month):

Types of Deposits

Existing

Revised Rates with effect

Less than TK.100 corer

Rate
8.25%

from 05.09.2010
Will remain unchanged

24

TK. 1.00 corer & above but less than TK. 5.00

8.50%

Will remain unchanged

corer
TK. 5.00 corer & above

9.00%

9.25%

Types of Deposits

Existing

Revised Rates with effect

Less then TK.100 corer

TK. 1.00 corer & above but less than TK. 5.00

Rate
8.25%
8.50%

from 05.09.2010
Will remain unchanged
Will remain unchanged

corer
TK. 5.00 corer & above

9.00%

Will remain unchanged

FDR (Tenure 6 month):

FDR (Tenure 1 year):

Types of Deposits

Existing

Revised Rates with effect

Rate

from 05.09.2010

Less then TK.100 corer

8.25%

Will remain unchanged

TK. 1.00 corer & above but less than TK.

8.50%

Will remain unchanged

9.00%

Will remain unchanged

5.00 corer
TK. 5.00 corer & above

OPENING OF FIXED DEPOSIT ACCOUNT

The depositor has to fill up an application form wherein he/she mentions the amount of deposit,
the period for which deposit is to be made and the name(s) in which the fixed deposit receipt is
to be issued. In case of a deposit in joint names, the banker also takes the instructions regarding
payment of money on maturity of deposit i.e. whether payable jointly or payable to survivor etc.
25

The banker also takes the specimen signatures of the depositor(s). A Fixed Deposit Receipt is
than given to the depositor acknowledging receipt of the sum of money mentioned therein. It also
contains the rate of interest and the date on which the deposit will mature for payment. In this
account no transactions are allowed and no Cheque books are issued. Customers are given Fixed
Deposit Receipt only.

PAYMENT OF INTEREST
It is usually paid on the maturity of the fixed deposit. IFIC Bank Ltd, calculates the interest at
each maturity date.

Types of Deposits (FDR)

One month
Three months
Three months & above

Deposit Rates
8.00%
8.50%
8.50%

3.3 CASH SECTION

Cash department is the most vital and sensitive organ of a branch as it deals with all kinds of
cash transactions. This department starts the day with cash in vault. Each day some cash i.e.
opening cash balance are transferred to the cash officers from the cash vault. Net figure of this
cash receipts and payments are added to the opening cash balance. The figure is called closing
balance. This closing balance is then added to the vault. And this is the final cash balance figure
for the bank at the end of any particular day.
Functions of cash department
Cash payment
26

 Cheque cancellation process

Cash receipt

Cash payment
Cash payment is made only against cheques.
This is the unique functions of the backing system which is known as payment on
demand.
It makes payment only against its printed valid cheque.

3.4 Service of IFIC Bank

3.4.1 Local Remittances
Sending money from one place to another place for the clients is another important service
of the bank. This service is an important part of transaction system. In this service system,
people, especially businesspeople can transfer funds from one place to another place easily.
There are three kinds of technique for remitting money from one place to another these are
1. Demand draft (DD)
2. Pay order (PO)
3. Telegraphic Transfer (TT)

3.4.2 Demand Draft (DD)

DD is called Bankers Draft. It is an instrument, issued by a particular branch, drawn on
another branch of the same bank, instructing to pay a certain sum of money. It is very popular
instrument for remitting fund from one corner of a country to another. DD is issued in favor of a
client who maintains an a/c with IFIC Bank.
27

Commission and charges of DD:

Postal charge Tk. 15.00 + commission 0.10% + 15% Vat on commission.

Demand Draft Issuing Process

Figure 7: Demand Draft Issuing Process

After finishing all the required information entry of the DD given in the DD issuing register and
at the same time bank issues a DD confirmation slip. It is entered into the DD advice issue
register and a number is put on the confirmation slip form in the same register. Later the bank
mails this advice to the drawer branch.

28

3.4.3 Pay Order (P.O)

Pay order gives the right to claim on the issuing bank. A payment is an instrument from one
branch to another branch of the bank to pay a specIFIC sum of money. Unlike cheque there is no
possibility of dishonoring because before issuing pay order the bank takes money in advance.
There are three reasons behind the use of P.O:
Remitting Purpose
Advice to Pay
Payment against bill submitted to the bank.

Pay Order consists of three parties:

Beneficiary
Applicant
Counter Part

Commission and charges of P.O:

Amount of P.O

Commission on

15% VAT on

Remittance

Commission

Up to TK. 100,000

25

100,001 to 500,000

50

Above 500,000

100

25

29

Table 9: Commission and charges of P.O

Payment Process of Paying Bank: Payment is made through clearing
Pay Order:
A PO issued by the bank is crossed one. It is not paid over the counter. On the contrary the
amount is transferred to the payees account. To transfer the amount the payee must duly stamp
the PO.
Pay Order issuing process:

Purchaser has an account with IFIC and fills up the relevant form with a credit Purchase
voucher the PO in favor of a person o

If any Account with IFIC

If Deposit to another bank

Collecting Bank sends an IBDA

Deposit the PO in his account with IFIC or another B

Payees account credited with collecting Banker

The collecting Banker presents the PO to paying Banker t

Payees account credited with collecting

Figure 8: Pay Order issuing process

3.4.4 Telegraphic Transfer (TT)

30

TT Issuing branch requests to another branch to pay specified sum of money to a specific person
on demand by telegraph or telex or telephone. Transfer of fund by TT is the rapid and
Convenient but expensive method.
Client fills up the TT form and pays the amount along with commission in cash or by
cheque.
The respective officer issues a cost memo after receiving the TT form with payment seal,
then signs it and at last gives it to the client.
Next a TT confirmation slip is issued and its entry is given in the TT issue register.
A test number is also put on the face of the slip. Two authorized officers sign this slip.
The respective officer transfers the message to the drawer branch mentioning the amount,
name of the payee, name of the issuing branch, date, test number and his her power of
attorney (P.A.) number.
The confirmation slip is sent by post.

Payment Process of TT:

Step-I: Test confirmation
Step-2: Confirm issuing branch
Step-3: Confirm payees account.
Step-4: Confirm amount
Step-5: Make payment
Commission and Charges of TT:
Telephone or Telex charge TK.30.
Commission of Principal amount.
15% VAT on commission.
31

3.5 Clearing Section

This section receives all kinds of cheques in favor of the valued client for clearing on the part of
their banking services. After receiving the cheque, it is necessary to endorse it and cross it
specially. Clearing of cheque is done through the clearing house in Bangladesh Bank.

TYPES OF CHEQUE FOR CLEARING

There are four types of cheques for clearing:
1) Inward clearing cheque.
2) Outward clearing cheque.
3) Inward bills for collection.
4) Outward bills for collection.
Inward clearing cheque
It refers the instruments drawn on IFIC bank received by other banks in the clearing house from
the representative of other bank.
Outward bills for collection
When our branch sends Cheque to other branch of IFIC bank, it is called OBC. Accounting
treatment of this process:
IFIC general (Senders Branch)
Dr.Depositors A/C

Cr.

Inward bills for collection (lBC)

32

There are two types ofclearing; first, collecting cheque from the other branch of IFIC bank.
These Cheques are settled by sending to the debiting depositors account and crediting senders
branch account. Second, collecting cheques from another bank outside the clearing house. These
cheques are settled debiting depositors account and sending DD orTT in favor of senders bank.
Outward Clearing Cheque (OCC)
Cheque drawn of another branch of IFIC bank is called Outward Clearing Cheque. These types
of cheques are directly sent to the respective branch and request them to send IBCA.

3.6 ACCOUNTS SECTION

This is obviously an independent and unique department, which works as the composition of all
the departments of the branch. This section is fully computerized. So the conventional large
ledger and journal books are not kept like some nationalized bank. It receives the vouchers from
all departments and prepares the subsidiaries and maintains accounts.

ESTABLISHMENT SECTION
This section deals with employees salary, many types of internal expenses such as purchases of
stationary, equipment, machinery, payment of labor cost and conveyances. In case of leave of
absence employee collects prescribed from this section.

33

3.7 Loans
Auto Loan.
Getting the Loan:
If you are an adult employed person and have an account with us then you can easily apply for
the AUTO LOAN.

Loan Size: Maximum Tk.20 lac *.

Loan Period: 12-60 months.
Debt Equity Ratio: 70:30

Interest rate: 15.50% p.a

Processing: Quick Processing Immediately.
Least Formalities.

*Conditions apply

Consumer Loan
Getting the Loan:
If you are an adult and employed person and have an account with IFIC, then
you are eligible to apply for the loan.

Loan Size: Maximum Tk.1 Lac.

Loan Period: 12-36 months.
Debt Equity Ratio: 80:20
34

Interest rate: 16.50% p.a

Processing
Quick Processing Immediately.
Least Formalities.

*Conditions apply.

Easy Lon
Getting the Loan:
If you are an adult person and
have an account with us then you
can easily apply for the EASY
LOAN.

Flexi Loan
Getting the Loan:
If you are an adult Bangladeshi employed by the
Govt/Autonomous body/ Bank/ MNC/ NGO or any other
kind of employed person with at least monthly Tk. 10,000
salary then you are eligible for the Flexi Loan.

FLEXI LOAN Purposes:

a. Marriage expense for sons and daughters.
b. Holiday expenses for self and family members.
c. Emergency medical needs.
d. CNG conversion for car.
e. Home renovation / any other purpose

Loan Size: Maximum Tk.3 lac*.

Loan Size:
Maximum 95% of the face value
of FDR.
Maximum 100% * of the MIS
amount.
Maximum 100% of the principal
amount of PSS.

Loan Period:12-36 months.

Interest rate: 16.50% p.a
Debt Equity Ratio: 70:30

Loan Period: 12-36 months.

Processing: Quick Processing Immediately.

Least Formalities.
*Conditions apply

35

Possession Loan
Getting the Loan:
If you are a Bangladeshi entrepreneur with only 2 years of successful business
record & having a valid trade license and also have an account with IFIC, then you
are eligible to apply for this loan.

Loan Size: Maximum Tk. 5 Lac.

Loan Period: Maximum 65 years on the date of maturity of the loan.
Processing
Quick Processing Immediately.
Least Formalities.
*Conditions apply

Peshajibi Loan
Getting the Loan: If you are an adult employed person and have an account
with us then you can easily apply for the PESHAJEEBI LOAN.

Loan Size: Maximum Tk.5 lac*.

Loan Period: 12-36 months.
Processing:
Quick Processing Immediately.
Least Formalities.
*Conditions apply

36

Retail Loan
Getting the Loan:
If you are a Bangladeshi entrepreneur with min of 2 years of successful business
record, have a valid trade license and have an account with IFIC, then you are
eligible to apply for this loan.

Loan Size: Maximum Tk.1 Lac.

Loan Period: Maximum 2 years.
Processing
Quick Processing Immediately.
Least Formalities.
*Conditions apply.

3.8 Corporate Social Responsibility of IFIC Bank

IFIC Bank undertook a good number of programs in the field of corporate social responsibility
(CSR) in order to address the needs of common people for making a positive and meaningful
contribution to the society.

1. IFIC bank donated TK.20.00 million to Prime Ministers

the victims of Rana Plaza Tragedy under Banks CSR activities.

relief

fund

for

02. The bank donated TK.2.50 million to Rangpur cantonment authorities for Sponsoring a
documentary and book publication on the role of Rangpur District during Liberation War.

03. PROYASH is an institution for the children with soecil needs and disability.Its main
activities are to impart training and education to these children empower and rehabilitate in the
society. Considering the importance of their activities, IFIC bank paid TK.10 million to
PROYASH.
37

04. Jalalabad Education Trust is a non-political welfare organization .Jalalabad education

Trust received financial assistance of TK.1.00 million to raise their fund for educational
activities.

05. The Bank distributed blankets and shawls among the poorest people in 24 districts through
bank branches, Bangladesh Bank and Bangladesh association for Social Advancement (BASA)
as part of Banks CSR activities. The Bank spend TK.2.82 million in this Purpose.

06. IFIC Bank disbursed TK.0.33 million to landless people in underdeveloped areas through
55 branches as the part of Banks CSR activities. The relationship manager of concerned
branches implemented the CSR activity in agricultural sectors and income generating activities
by distributing saplings and seeds of various high valued trees, corps, poultry items etc.

07. Sir Salimullah Medical College is the second largest medical college of our country. The
Debates and Quiz society of the medical college organized year-long programs in 2014 on the
college campus. The Bank donated TK. 0.55 million to debate and Quiz Society of Sir
Salimullah Medical college for organizing their programs on the campus.

08. Shamsunnahar Hall of university of Dhaka is the second largest hall for female students
of the university. The hall had only one TV for the entertainment of a large number of students.
Considering the necessity of the large number of students, the bank donated a modern television
set to Samsunnahar Hall university of Dhaka.
38

3.9 Findings and Discussion

IFIC Bank is one of the largest and oldest private-sector commercial bank in Bangladesh, with
27 years of experience. Adaptation of modern technology both in terms of equipment and
banking practice ensures efficient service to clients.
But IFIC Bank has been facing few problems.
In general banking system they follow the traditional banking system. The entire
general banking procedure is not fully computerized.
According to some clients, opinion introducer is one of the problems to open an
account. If a person who is new to the city wants to open an account, it is a problem
for him/her to arrange an introducer of SB or CD accounts holder.

39

 Bankers face enormous problems to fill up loan related paper like parties loan
application, stock report, Net worth valuation report etc.
Proper documentation under traditional rules in some cases creates serious problems
for investment taking practices.
Lack of team work is a major problem in general section.
Sometimes the valuation of properties is not calculated properly for which clients
suffer.
It does not offer various loan projects like other banks.
Modern technical equipment such as computer is not sufficient in general department.
As a result, the service process makes delay and it is also complicated.
Employees are exposed to clients excessively which is an obstacle in systematic and
prompt service.
Space shortage is another major problem in General Banking Department.
As a newly converted Islamic Bank, its efficient bankers are trained with traditional
banking and sometimes they are not eager to follow the Islamic practice.
Decisions are centralized

40

CHAPTER 4

SWOT Analysis of IFIC Bank

41

SWOT analysis is the detailed study of an organizations exposure and potential in perspective of
its strength, weakness, opportunity and threat. This facilitates the organization to make their
existing line of performance and also foresee the future to improve their performance in
comparison to their competitors. Using this tool, an organization can study its current position, it

42

can also be considered as an important tool for making changes in the strategic management of
the organization.

4.1 STRENGTH
Quality services through modern sophisticated automated system.
In case of service offered by all private banks in our country, IFIC Bank Ltd, has maintained
high quality.
Since the govt. has imposed some new rules regarding private banking operation, IFIC Bank
Ltd. easily coped with the given rules.
Regarding contribution towards countrys GDP they have contributed a handsome amount per
year.
Experienced and competing workforce who have expertise knowledge about the bank
Some loyal clients who always bring in new clients.
Management consists of knowledgeable and authoritative personnels.
Reputation of the management
Interaction of the employees with the top management.

4.2 WEAKNESS

The prime weakness I found was lack of motivation of employees.

Absence of teamwork because of subtle interpersonal clash.
Bad employee-management relation in some cases.
The bank doesnt have any long-term strategies of whether it wants to focus on retail

banking or become a corporate bank.

Sometimes the process of information transferring to the management is lengthy.
Lack of own ATM services.
43

4.3 OPPORTUNITIES
IFIC is going to introduce credit card and ATM facility. It is a sign of product innovation
which IFIC can do further and successfully.
It has branches abroad which many commercial banks of the country do not have. This
distinctiveness introduces competitive advantage for IFIC.
With its proper and useful operational network, there is an opportunity for IFIC to further
expand its branches in many remote and new location of the country which will deliver
services to customer and earn a healthy profit for the bank.
Another opportunity is the establishment of new banks in very vital points. Moreover, in
our country there are no closing rules for commercial banks. As a result of which as an
existing commercial bank IFIC Bank Limited has a great opportunity and potential for
its favorable business opportunity.

4.4 THREATS
Poor economic condition of our country.
Entrance of new private commercial banks.
Different attractive services offered by some foreign banks.
Existing card service of different banks.
Other commercial banks are offering higher salary that may create problem for IFIC
Bank Ltd to retain their experienced managers and executives.

44

CHAPTER 5

Conclusion and Recommendation

IFIC Bank

45

5.1 CONCLUSION
Top management of IFIC should conduct a comprehensive study or survey on the branches
performance, its managements performance and the employees performance and their
motivation as well. Few loyal committed customer bases, lack of modern and effective
technology or facilities, not enough skilled employee in some sector, considering all of these
very important factors. IFIC Bank should always try to improve their service level in every term.
The marketing department should think freshly about their marketing objectives and practices.
Rapid changes can quickly make yesterday's wining strategies out of date. As a developing
private bank in Bangladesh, IFIC Bank shouldn't allow their clients to get dissatisfied with their
service. They have their competitors who are actively striving to take the advantages in every
side.

5.2 RECOMMENDATION
In order to get success, market advantage and to deliver quality service, top management
may try to develop the banking services and products.
IFIC Bank may train up their branch personnel about all sort of information regarding
Society for Worldwide Inter Bank Financial Transaction (SWIFT) and its service.
Due to lack of proper knowledge about the services provided to the customers and the
operation procedures by SWIFT, certain customers are facing problem, as they have to
wait for a certain time to get the service they want. And sometimes personnel are not
being able to operate SWIFT without facing any problem. They are not fully capable of
handling SWIFT. The solution to this problem is official training.
IFIC Bank continuously strives and tries to introduce new services and products as access
card, with future improved quality services.
46

 It seems to us that day-by-day customers operation is increasing; individual employee has

to handle different kinds of job. But that is not good for an employee. As a result it might
lead to a big mistake by the employee and service is also a lot time consuming and
customer has to suffer for this situation. May-be it would be the reason for employee's demotivation as well as the customer's dissatisfaction.
IFIC Bank Ltd. might concentrate on their promotional activities. They should also focus
on the marketing aspects to let customers know about their products and offerings and
more promotion should be given to attract new customer.
IFIC Bank Ltd. might develop electronic banking system to modify the service.
Technological advantage of a bank ensuring its competitive edge in the market place can
only be achieved by efficient manpower. Electronic banking system also allows increased
access to the financial system by its customers.

47

BIBLIOGRAPHY
N.T. Somashekar, Banking, New Age International Limited
Publishers
P.N. Varshney, Banking Law and Practice, 21 st edition, Sultan
Chand and Sons Publication

References
Published Article:
Prospectus of IFIC Bank Limited
Annual Report of IFIC Bank Limited (2009 to 20014).
IFIC Bank Working Manual for Loan & Advances, 2014
IFIC Bank, Financial Statement-2014-15
IFIC Bank, Corporate Social Responsibility Report.

Website:
http://www.ificbankbd.com
http://www.bangladeshbank-bd.org
http:// www.google.com
http//:www.wikipedia.org

48