Social Responsibilities & Ethics of Banking (EB-622)

University of Dhaka
July 21, 2012

Presented byMoniruzzaman- 51019033

a.

Acceptance of gifts from customer

b.

Do work by political influence

c.

Information hide for own intention serve

d.

Giving loan without proper documentation

e.

Charging inappropriate amount of

customers without informing them

f.

Finance in improper sector which is against society &

environment

g.

Making people convinced to bank with them using religion

factor

h.

Violation of central bank regulations

money

from

the

a.
b.
c.

Make short term profit

Make a place in the banking industry in short term
period
Some time fulfill of personal requirement of a
banker let him do unethical practice

The Bank was incorporated as a public limited

company under the Companies Act. 1994. The Bank
started its commercial operation on July 05, 1995
with an authorized capital of Tk. 1,000 million and
paid up capital of Tk. 100 million.

The Bank has 58 branches across the country and a

wide network of correspondents all over the world.
The Bank has plans to open more branches in the
current fiscal year to expand the network.

Various division of Dhaka Bank LtdPersonal Banking Division.

Corporate Banking Division.
Islamic Banking Division.
Credit and Loan Division.
Foreign Exchange Division.
Central Accounts Division.
Operation Division.
Human Resources Division
Investment Division.
Audit & Risk Management Division.
Information Technology Division.
Dhaka Bank Training Institute etc.

In customer Service

Entertainment for selected customers

Discrepancy in cash counter

- Disagree to change fade notes

-

No proper attention to the customer

Discrepancy in cash counter

Charge for Dishonor the Clearing Cheque

Late adjustment of loan

Some time financing

documentation

Increase in Interest Rate without notice

Different types of Force marking

Hidden Charges for different products at maturity

of

project without

proper

Unethical practice in Dhaka Bank Ltd. (Cont.)

Improper charges:
a. Charge excessive fee PO, DD issue.
Service Description
Pay Order Issue commission

Demand Draft Issue commission

Range

Charges

Upto Tk. 1 lac

Tk.75+VAT

Above Tk. 1 lac to below Tk. 5 lac

Tk.150+VAT

Above Tk. 5 lac

Tk.250+VAT

Any amount

0.15% /(Min.-Tk.200)

Dhaka Bank applies the above charges for PO, DD issue

whereas the govt. banks charge only Tk.50.00 flat for any amount
of PO & DD issue.
b. Charges for processing fee is 1%-2%
c. Dhaka Bank usually charges minimum Tk.500 to maximum
Tk.1000 for statement of accounts
d. Bank charges 30% p.a. interest against the outstanding balance
of Credit Card on monthly basis.
e. Late payment fee @ 4% per month
f.
Early settlement fee is 2% on the rest of the loan outstanding
g. Loan Interest charged on quarterly but deposit interest on (SB
/CD accounts) half yearly basis

Bextex Ltd. (the "Company") was incorporated in

Bangladesh as a Public Limited Company with limited
liability on 8 March 1994 and commenced
commercial operation in 1995 and also went into the
public issue of shares and debentures in the same
year. The shares of the Company are listed in the
Dhaka and Chittagong Stock Exchanges of
Bangladesh.
Bextex Ltd. is the most modern composite mill in the
region. Bextex Ltd. has an installed capacity of 288
high-speed air-jet looms in its weaving section and a
high-tech dyeing and finishing section with a capacity
of 100,000 yards of finished fabric per day. This
company is located at the Beximco Industrial Park .

Bextex Ltd. (the "Company") was incorporated in

Bangladesh as a Public Limited Company with limited
liability on 8 March 1994 and commenced
commercial operation in 1995 and also went into the
public issue of shares and debentures in the same
year. The shares of the Company are listed in the
Dhaka and Chittagong Stock Exchanges of
Bangladesh.
Bextex Ltd. is the most modern composite mill in the
region. Bextex Ltd. has an installed capacity of 288
high-speed air-jet looms in its weaving section and a
high-tech dyeing and finishing section with a capacity
of 100,000 yards of finished fabric per day. This
company is located at the Beximco Industrial Park .

Improper working environment.

Discrimination in gender:
Among the employees12% women 88% men worker

Discrimination in wages:
On an average BDT 4,000 to 5,000 only !!!

Extra Working hours

Poor accommodation & sanitation facilities

Safety Problems: Routes are blocked by storage materials,

Doors, opening along escape routes, are not fire resistant
etc.

Recent Bank fraud in Bangladesh:

The Sonali Banks Unethical lending:
The Sonali Bank will relieve three of its senior officials of their duties
for lending Tk 2,638 crore to a little-known group beyond their
authority.
The BB had asked the bank to take punitive steps against the three.
They include AKM Azizur Rahman, deputy general manager of the
bank's Ruposhi Bangla Hotel branch, and Saiful Hasan, assistant
general manager of the same branch.
The Ruposhi Bangla Hotel branch lent Hallmark Group around Tk
2,000 crore through a plot.
Hallmark Group recently opened local letters of credit worth around
Tk 500 crore in favour of Anwara Spinning Mills, Max Spinning Mills
and Star Spinning Mills to buy yarn. The three companies are also the
clients of the same branch. The group also gave guarantees to repay
the LCs.
Anwara Spinning Mills, Max Spinning Mills and Star Spinning Mills are
owned by the key person of Hallmark Group, Md Tanvir Mahmud.

Recent Bank fraud in Bangladesh: (Cont.)

The UCBL credit Card fraud:

The four UCBL officers were arrested on Sunday for their alleged
involvement in swindling nearly Tk 10,68,72,000 through credit card frauds.
The detainees were identified as
Nahidul Haque, Assistant vice-president of the bank,
Zahid Hossain Thakur, Executive officer
and senior officers Maruf Haider and Md. Shahidullah.
The detainees did not show the money deposited against some credit cards
to the banks card section, but they received the payment, police said.

 Thank

You