Internship Report Rezwan

Internship Report

An InternshipAn Internship Report Report

OnOn

Diversified PortfolioDiversified Portfolio&&

SME BankingSME Bankingofof

“Diversified Portfolio & SME Banking of Eastern Bank Limited” 1

Internship Report

Prepared forPrepared for

Rubiat BegumRubiat BegumLecturer in FinanceLecturer in Finance

Faculty of Business StudiesFaculty of Business StudiesBangladesh University of Business & TechnologyBangladesh University of Business & Technology

(BUBT)(BUBT)

Prepared byPrepared by

Md. Rezwan KabirMd. Rezwan KabirID no. 02033101015ID no. 02033101015

BBA ProgramBBA Program11stst Intake Intake

Bangladesh University of Business & TechnologyBangladesh University of Business & Technology (BUBT)(BUBT)


Internship Report

Date:___________Date:___________

Date:___________

Mrs. Rubiat BegumLecturer in FinanceFaculty of Business StudiesBangladesh University of Business & Technology (BUBT)MirpurDhaka-1216

Subject: Subject: Submission of Internship Report on “Diversified Portfolio & SMESubmission of Internship Report on “Diversified Portfolio & SME Banking of Eastern Bank Limited”.Banking of Eastern Bank Limited”.

Dear Madam:

This is my pleasure to present my Internship Report on “Diversified Portfolio & SME Banking of Eastern Bank Limited (EBL)" that you have asked me to prepare as an internship report.

The report shows an analysis and overview of the subject. In preparing the report I tried to gather information which was most complete and relevant.

I have great hope that the report will meet your expectation and aid you in getting a clearer idea about the subject. I will take immense pleasure in providing you with any queries you have regarding the study.

I gained some valuable knowledge and experience while working on this report and I glad to have the opportunity to prepare this report for you.

Sincerely Yours’

____________________________Md. Rezwan KabirMd. Rezwan Kabir


Internship Report

ID no. 02033101015ID no. 02033101015BBA ProgramBBA Program11stst Intake IntakeBangladesh University of Business & Technology (BUBT)Bangladesh University of Business & Technology (BUBT)

ACKNOWLEDGEMENTACKNOWLEDGEMENT

Success is only possible where there is an engaged heart. InSuccess is only possible where there is an engaged heart. In

preparing this report, it was evident that the engaged heart of minepreparing this report, it was evident that the engaged heart of mine

alone was not enough. I needed the support of significant others. It isalone was not enough. I needed the support of significant others. It is

therefore, difficult not to devote a page of this text acknowledging thetherefore, difficult not to devote a page of this text acknowledging the

assistance we received from number of people.assistance we received from number of people.

First of all, I would like to express my deep gratitude to the almightyFirst of all, I would like to express my deep gratitude to the almighty

Allah for fruitfully preparing this internship report. Allah for fruitfully preparing this internship report.

And then it is important to give credit to my supervisors Mrs. RubiatAnd then it is important to give credit to my supervisors Mrs. Rubiat

Begum, Lecturer in Finance, faculty of business studies at BUBT. ForBegum, Lecturer in Finance, faculty of business studies at BUBT. For

her guidance, constant supervision, constructive suggestions andher guidance, constant supervision, constructive suggestions and

moral support it is possible to prepare this report. moral support it is possible to prepare this report.

I am very much thankful to all the persons of EBL who help me toI am very much thankful to all the persons of EBL who help me to

complete my internship in a meaningful way, without their help it wascomplete my internship in a meaningful way, without their help it was

not possible for me to complete my internship as well as the report.not possible for me to complete my internship as well as the report.

The management of Sonargaon road SME had been extremely helpfulThe management of Sonargaon road SME had been extremely helpful

in providing necessary documents, annual report, statements, andin providing necessary documents, annual report, statements, and

brochure etc. which have helped me lot for preparing this Internshipbrochure etc. which have helped me lot for preparing this Internship

report. I would like to convey my appreciation and thanks for thosereport. I would like to convey my appreciation and thanks for those

who have guided me generously with the right knowledge for thiswho have guided me generously with the right knowledge for this


Internship Report

report. Shower of thanks to those entire respondents who respondedreport. Shower of thanks to those entire respondents who responded

each and every time in collecting necessary data. each and every time in collecting necessary data.

“Table of Contents”“Table of Contents”

TopicsTopics PagePage

EXECUTIVE SUMMARYEXECUTIVE SUMMARY 0707

Chapter- 1

08-13

IntroductionIntroductionOrigin of the ReportOrigin of the ReportStatement of the reportStatement of the reportRational of the studyRational of the studyObjectives of the studyObjectives of the studyScope of the studyScope of the studyMethodologyMethodologySources and methods of data collectionSources and methods of data collectionLimitations of the studyLimitations of the study

Chapter- 2

14-17An Overview Of Eastern Bank Limited (EBL)An Overview Of Eastern Bank Limited (EBL)VisionVisionMissionMissionValuesValuesJob LevelJob Level

Chapter- 318-33Diversified Portfolio of EBL:Diversified Portfolio of EBL:

Consumer BankingConsumer BankingCorporate BankingCorporate BankingSME BankingSME Banking

Chapter- 4


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34-41SME Banking:SME Banking:The Case for the SMEsThe Case for the SMEsPlace of SMEs in the National Economy of BangladeshPlace of SMEs in the National Economy of BangladeshThe importance of the SME sectorThe importance of the SME sectorCurrent Scenario of SME financing in BangladeshCurrent Scenario of SME financing in BangladeshSME Banking of EBL:SME Banking of EBL:Products and Services (Mid Segments)Products and Services (Mid Segments)Products (Small Segments)Products (Small Segments)

Chapter- 5 42-44

CCREDITREDIT R RATINGATING R REPORTEPORT OFOF E EASTERNASTERN B BANKANK L LTDTD..

Chapter- 6 45-52

FFINANCIALINANCIAL H HIGHLIGHTSIGHLIGHTS OFOF EBL EBL

Chapter- 7 53-56

CCONCLUSIONONCLUSION

Chapter-8 57

BibliographyBibliography


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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

This is an internship report based on the internship program tookThis is an internship report based on the internship program took

place in Eastern Bank Limited at Sonargaon Road in SME Banking.place in Eastern Bank Limited at Sonargaon Road in SME Banking.

The main objective of this report is to analysis the diversified portfolioThe main objective of this report is to analysis the diversified portfolio

and SME Banking of EBL. and SME Banking of EBL.

I start my internship to the 16I start my internship to the 16thth of August with an Office order issued of August with an Office order issued

by the HR of EBL. Initially I started my internship at Principalby the HR of EBL. Initially I started my internship at Principal

Branch’s SME Banking then I was shifted to the Sonargaon Road SMEBranch’s SME Banking then I was shifted to the Sonargaon Road SME

Banking. Banking.

In a word Sonargaon road SME Banking serves its customers throughIn a word Sonargaon road SME Banking serves its customers through

two segments; Small Segments and Mid Segments. two segments; Small Segments and Mid Segments.

I got only three months to gather practical knowledge from thisI got only three months to gather practical knowledge from this

branch, although it was too difficult to gather maximum and properbranch, although it was too difficult to gather maximum and proper

knowledge within this short range of time.knowledge within this short range of time.

I tried my best to study the materials related with my topic andI tried my best to study the materials related with my topic and

observed import and export performed by EBL, SME and examineobserved import and export performed by EBL, SME and examine

relevant official and others published and unpublished data, annualrelevant official and others published and unpublished data, annual

reports of EBL, in order to prepare this report.reports of EBL, in order to prepare this report.

I have equally faced coI have equally faced co--operation and many obstacles simultaneously.operation and many obstacles simultaneously.

I hope this report would be able to portray the real status ofI hope this report would be able to portray the real status of

“Diversified Portfolio & SME Banking of Eastern Bank LTD.” My effort“Diversified Portfolio & SME Banking of Eastern Bank LTD.” My effort

will be meaningful if this report serves the purpose effectively. will be meaningful if this report serves the purpose effectively.


Internship Report

I have faced new challenge in every steps of banking procedure. I alsoI have faced new challenge in every steps of banking procedure. I also

tried to overcome in every case. I tried to present all the bankingtried to overcome in every case. I tried to present all the banking

activities that I have came across during my internship program.activities that I have came across during my internship program.


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1.0 INTRODUCTION1.0 INTRODUCTION

This internship program was my on the job exposure and provided me with

learning experience and knowledge in several areas. During the first few weeks

of my internship period, I was able to get accustomed to the working environment

of the Bank. As the internship continued, I not only learned about the activities

and operations of correspondent Bank, but also gathered some knowledge about

the basic business of banking in first one month of my internship period.

EBL pursues centralized management policies and gives adequate work freedom

to the employees. This result in less pressure for the workers and acts as a

motivational tool for them, also gives them encouragement and inspiration to

move up the ladder of success. Overall, I have experienced a very friendly and

supporting environment at EBL, which gave me the pleasure and satisfaction to

be a part of them for a while.

While working in here found each and every employee is friendly to me to

cooperate. They have discussed in details about their respective tasks. I also

participated with their works. So I learnt the operations regarding their works.

1.1 Origin of the Report: 1.1 Origin of the Report:

The report named “Diversified portfolio & SME Banking” of Eastern Bank Limited

was offered on August 16, 2007 as a requirement for the completion of the

Internship program as a student BBA program of Bangladesh University of

Business & Technology (BUBT).

The primary goal of the internship program is to provide the intern with the job

experience by orienting the intern with the organization and an opportunity for the

intern to relate the theoretical conceptions in the real business environment. The

program covers a period of three months of period. The duration of the internship


Internship Report

attachment with the organization was from August 16, 2007 to November 16,

2007.

1.2 Statement of the report:1.2 Statement of the report:

Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross

domestic product (GDP) and 80% of the industrial jobs of the country in 2004.

According to ADB, the country's estimated 6 million SMEs and micro enterprises

firms of less than 100 employees have a significant role in generating growth and

jobs. This is a sector that has its own distinct needs and requires specialized

focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with

this view in mind. EBL Provides:

SMEs with easy access to financing.

Deliver products that ensure superior returns to our customers.

Orient customers with industry trends, regulatory issues etc, for their

success.

Value long-term relationship banking.

1.3 Rational of the study: 1.3 Rational of the study:

Bank is the heart of the economics and banking is the blood circulation of

country’s economic growth. Banks perform a significant role to serve the needs

of the society in different sectors, such as: capital formation, large scale of

production, industrialization, growth of trade and commerce etc. and banks are

contributing a lot of aspect.

EBL has already emerged as one of the world wide recognized banks due to its

foreign exchange and foreign trade trend according to their banking principles.

SME banking is a new diminution of banking where ‘Small & Medium businesses


Internship Report

are highly focused. So I tried to represent their performance and problems and

prospects.

1.4 Objectives of the study: 1.4 Objectives of the study:

The objectives of this research paper are as below:

To acquire practical knowledge about the overall activities of SME

Banking of EBL.

To have a general idea about bank in terms of different functions and gain

experience on different functional departments.

To cover a comprehensive analysis of different Segments of EBL.

To study and understand the various services offered by this bank to its

clients.

To study how EBL has maintained growth in its banking business by

maintaining and enhancing its relationship with its clients.

To highlight the problems and necessary recommendations to overcome

the problems.

To know the performance of EBL in every aspects.

To understand the banking environment of private commercial bank in

Bangladesh.

By applying the theoretical knowledge in the bank to recommend on banks

operations and management.


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1.5 Scope of the study: 1.5 Scope of the study:

The scope of the study includes problems and prospects Eastern Bank Limited.

Eastern Bank Limited has 25 branches at present. Being centralized bank all the

branches treaded as AD to perform foreign exchange and foreign trade activities.

The study on mentioned topic was conducted at Sonargaon road SME banking of

with a view to find out the problems and prospects of EBL.

1.6 Methodology1.6 Methodology

In this study, exploratory research was undertaken to gain insights and

understanding of the overall different SME banking system and also to determine

some of the attributes of service quality in Banks. After that a more

comprehensive conclusive research was undertaken to fulfill the main purpose of

the study.

1.6.1 Sources and methods of data collection:1.6.1 Sources and methods of data collection:

Both primary and secondary sources have been utilized for collecting

necessary data to scrutinize EBL. Primary sources include face-to-face

interview with respective officials. Secondary sources consist of several

reading materials, such as journals, brochures, and annual reports.

1) Primary sources:

(A) Official record.

(B) Oral and informal interview of officials and employees in EBL.


Internship Report

2) Secondary Sources:

(A) Annual report of EBL.

(B) Printed forms and documentation supplied by EBL.

(C)Different bruisers of EBL.

(D)Relevant books, journals, booklets etc.

1.8 Limitations of the study: 1.8 Limitations of the study:

One of the crucial limitations is time constraint. As I posted in the Sonargaon

road SME banking initially it was difficult for me to collect related documents and

necessary data. Finally, lack of previous experience in this area was another

limitation. Except these there are many points, those are given below:

SME banking is very busy as well as confidential regarding to some

important project, so getting adequate relevant information is difficult.

Unavailability of sufficient written documents as required making a

comprehensive study.

Lack of in depth understanding of banking activities that prevents me from

going into details.

Lack of enough information on head office since I am working in a branch.

Lack of time.

Lack of required data.

Lack of knowledge.


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2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)

VISION

To become the Bank of Choice by transforming the way

we do business and developing a truly unique financial

institution that delivers superior growth and financial

performance and be that most recognizable brand in the

financial services industry in Bangladesh.

MISSION

We will constantly challenge our systems, procedures

and training to maintain a cohesive and professional

tem in achieving service per excellence.

We will create an enabling environment and embrace

a team based culture where people will excel.

We will ensure to maximize shareholders’ value.

We will deliver service par excellence to all our

customers, both internal and external.

VALUES

Service ExcellenceOpennessTrustCommitmentIntegrityResponsible Corporate Citizen

Service Excellence


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We passionately drive customer delight.We use customer satisfaction to accelerate growth.We believe in change to bring in timely solution.

Openness

We share the business planWe encourage two way communicationsWe recognized achievements, celebrate results

Trust

We care for each other We share learning/knowledgeWe empower our people

Commitment

We know our road mapWe believe in ‘continuous improvement’We do not wait to be told

Integrity

We say what we believe inWe respect every relationshipWe do not abuse ‘information power’

Responsible corporate Citizen

We are tax-abiding citizenWe conform to all law, norms, sentiments and values of the landWe promote protection of the environment for our children

Job Level


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Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

First Assistant Vice President (FAVP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Management Trainee Officer (MTO)

Senior Officer (SO)

Officer (O)

Supervisory Officer (SO)

Junior Officer (JO)


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Diversified Portfolio of Eastern Bank Ltd.

Consumer Banking:

EBL Consumer Banking deals with the day to day financial wants of the consumer clients. Our consumer banking products are designed keeping in mind the financial necessities and affordability of the clients. The new IT platform of EBL has enabled its Consumer Banking to offer world class and comprehensive range of financial products and services. These have been fashioned in a manner to fulfill our clients' banking needs with dedicated Relationship Managers who are reaching out to the customers to make sure that the job is done in a systematic manner within the clients time frame. And with our EBL internet banking service, you can now access your EBL accounts and EBL’s services at the click of your mouse

Products:

Current Account Savings Account Fixed deposit Account Savings Insurance Account High Performance Account Monthly Income Plan Monthly Deposit Plan Fast Cash Fast Loan Executive Loan Auto Loan

Current Account:

EBL Current Account is a non-interest bearing account suitable for both corporate and consumer clients. It allows unlimited cash withdrawal facility for customers from any of the 22 EBL branches across the country. There is a minimum balance requirement of Tk. 1.000.00 for maintaining a current account

Savings Account:

EBL Savings Account is suitably designed to meet the savings requirement of the consumer customers willing to save from their hard earned income. It pays interest at competitive rate matching the needs of the customers. Savings Account is very easy to open and can be operated from any EBL branch giving the customers the demographic flexibility. Minimum balance requirement for a savings account is Tk. 15,000.00.


http://www.ebl.com.bd/auto_loan.htm

http://www.ebl.com.bd/executive_loan.htm

http://www.ebl.com.bd/fast_loan.htm

http://www.ebl.com.bd/fast_cash.htm

http://www.ebl.com.bd/mdp.htm

http://www.ebl.com.bd/mip.htm

http://www.ebl.com.bd/hpa.htm

http://www.ebl.com.bd/sia.htm

http://www.ebl.com.bd/fda.htm

http://www.ebl.com.bd/sa.htm

http://www.ebl.com.bd/ca.htm

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Fixed Deposit:

EBL Fixed Deposits having flexible tenure ranging from one month to three years allow the customers to get more out of their long term investment. Keeping in mind the income requirement of the customers EBL offers high interest rates. It is very simple to open a fixed deposit account from any EBL branch.

High Performance Account:

You keep a minimum balance of Tk.20, 000.00 under this account. We offer very competitive rates that are tiered into two slabs for deposits up to Tk. 10 lacs and above Tk. 10 lacs.

The interest on your account is calculated on a daily basis and added to your deposit half yearly. If your deposit goes below the Tk. 20,000 limit on any day then you lose interest for that day.

As the EBL High Performance Account is a hybrid account that conjoins the security and growth of a Savings Account with the convenience of a Current Account you get more out of your money while you enjoy the convenience of unlimited cash withdrawal.

You get the highest interest rate on your deposit compared to other similar accounts on offer in the market. EBL High Performance Account is available at all the EBL branches in every major city

Monthly Income Plan (MIP):

EBL Monthly Income Plan is an income plan which helps you to earn a monthly fixed amount on your fixed deposits kept with EBL for a period of 3 years.

All you need to do is keep TK 50,000/- or multiples of it for a period of 3 years. You will earn TK. 328/-(After deduction of Tax) per month on every deposit of TK. 50,000/-, or TK. 525/-(After deduction of Tax) per month on every deposit of TK. 100,000/- for a period of 3 years. You can open any number of MIP of TK 50,000/- or multiples of TK 50,000/-

Monthly fixed interests will be automatically credited to your linked personal Current /Savings/High Performance account on due date.

General information of Monthly Income Plan (MIP):

1. Easy procedure to open MIP 2. Customer must be a Bangladeshi citizen 3. Over 18 years of age 4. Must be an Account Holder of EBL 5. Customer must appoint a Nominee


Internship Report

6. Minimum balance of MIP is TK 50,000/- 7. Maximum balance any amount in multiples of TK 50,000/ 8. A competitive interest rate of 7% per annum. 9. Minimum and maximum period of MIP is 3 years or 36 months 10.Auto renewal of MIP after three years unless advised otherwise by you 11.Upto 90% Loan facility in the form of EBL FastCash/FastLoan against

MIP principal amount 12.Account access from any EBL branch

EBL Monthly Deposit Plan (MDP):

EBL Monthly Deposit Plan is a savings plan which helps you to turn your small monthly savings into a large amount over a period of 5 years. It is a convenient savings mode which helps your money to grow. To open a Monthly Deposit Plan all you need to do is choose any of the six monthly deposit amount options. You may choose more than one Monthly Deposit Plan of different denomination.

You do not have to turn up to the branch for monthly deposit payments. Monthly deposit will be automatically debited from your linked Current/Savings/High Performance account by standing instruction on due dates.

General information of Monthly Deposit Plan (MDP):1. Easy procedure to open MDP 2. Must be a Bangladeshi citizen 3. Over 18 years of age 4. Must be an Account Holder of EBL 5. Customer must appoint a Nominee 6. Minimum monthly deposit amount is TK 500/- 7. Maximum monthly deposit amount is TK 5,000/- 8. Other Monthly Deposit options are TK 1,000/-, TK 2,000/-, TK 3,000/- &

TK 4,000/- 9. Minimum and maximum period of MDP is 5 years or 60 months 10.A competitive interest @ 7.00% compounded monthly 11.Up to 80% Loan facility in the form of FastCash/FastLoan against MDP

Deposits after 2 years 12.Account access from any EBL Branch

EBL Fast Cash:

EBL Fast Cash is a revolving credit facility. FastCash allows the customer to draw up to a predetermined amount of credit from their Current Account. Customers will only be charged interest for the amount they draw. The minimum limit for EBL FastCash is Tk. 50,000.00

General information of EBL FastCash:


http://www.ebl.com.bd/branch.htm






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1. Simple documentation to avail FastCash 2. You must be a Bangladeshi citizen 3. Over 18 years of age 4. You must be an Account Holder of EBL 5. Minimum overdraft limit is TK 50,000/- 6. Maximum overdraft limit is TK 5,000,000/- 7. EBL FDR interest rate + 2.75%: For others securities 11.00% per annum8. Interest is charged only on the withdrawn amount9. Loan is sanctioned within 24 hours of application10. Up to 90% loan facility of the offered security11. Loan tenure is one year which is renewable12. Account access from any EBL branch

Accepted Securities:

EBL Fixed Deposit Receipts (FDR) ICB Unit Certificates Wage Earners Development Bonds

EBL Executive Loan:

EBL Executive Loan is any purpose EMI (equated monthly installment) based credit facility for salaried executives.

No Cash Security No Down payments No Price Quotation/ Invoice required

Amount: Maximum 6 times gross monthly salary

Tk. 50,000/- to 10,00,000/- for Salary A/C holders and lien of Terminal Benefits

Tk. 50,000/- to 6,00,000/- for Salary A/C holders. Tk. 50,000/- to 5,00,000/- for loan against Post-dated

cheques and 1 Personal Guarantee.

Interest rate:

13.25% for Salary A/C holders and lien of Terminal Benefits 14.5% for Salary A/C holders 15% for loan against Post-dated cheques and 1 Personal

Guarantee

Tenor: 12, 24 or 36 months

Eligibility:

Age: Between 25 to 52 years



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Job experience: Minimum 4 years of which at least 1 year with current employer.

Income: Minimum Tk. 15,000/-per month for private organization and Tk. 10,000/- for government employees

Auto Loan:

EBL Auto Loan is here to help you purchase your dream car. It's easy and flexible repayment schedule erase your worries about the burden of a loan. Our Auto loan Scheme will allow you to avail credit up to 75% of the car value. You need to be a Bangladeshi national between the age of 25-55, working in a reputed multinational/ local firm or involved in a reputed business.

The maximum repayment period for EBL Auto Loan is 4 years. You can choose 12, 24, 36 or 48 equated monthly installments (EMI) to repay the loan.

Services of Consumer Banking:

Locker Services EBL 5 to 9


http://www.ebl.com.bd/ebl_5_9.htm

http://www.ebl.com.bd/locker.htm

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Online Banking EBL Visa Electron Card Utility Services Bill Collection Tuition Fees Collection Student File

Locker services:

EBL offers three different types of lockers - small, medium and large. They can be used for the safe keeping of personal belongings (jewelry, documents etc.). However nothing illegal can be kept in the locker. The locker holder has to have an account with EBL to get this service. The yearly rate of the lockers range from the smallest one being TK 1000, the medium one being Tk 1500 and the Large one being TK 2500. This service is available at the following branches of EBL.

1. Dhanmondi 2. Uttara 3. Shantinagar 4. Mirpur 5. Gulshan 6. Sonargaon Road 7. O.R.Nizam Road 8. Rajshahi 9. Bogra 10.Chouhatta (Sylhet)

EBL 5 to 9:

This is a service that gives the customer the option to deposit money in the bank beyond banking hours. All the customer has to do is become a member of the EBL 5 to 9 services by providing a nominal yearly fee. The customer being a member will be given a bag and a lock.

He/she can put in money in the bag lock it and deposit the same in the EBL 5 to 9 safe deposit box kept in the branch any time during 24 hours time. The bag upon deposit in the 5 to 9 deposit box will directly go to the bank's secured vault. His/her deposit will be credited to the respective account the following day and the deposit bag will be returned to the customer for further deposits in the future.

This is a convenient 24 hour deposit service especially for small traders and shop owners who feels unsafe keeping their money in the shop or carry it home in the night.

Online Banking:

Flexcube@ is the Internet banking solution that delivers the Corporate, Consumer and Investment Banking products to bank's customers over the


http://www.ebl.com.bd/student.htm

http://www.ebl.com.bd/tuition.htm

http://www.ebl.com.bd/utility.htm

http://www.ebl.com.bd/atm.htm

http://www.ebl.com.bd/online_banking.htm

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Net. Our Internet Banking module is a secure, robust and extensible web banking solution. It is anchored on a reusable component framework that complies with industry standards. Conceived specifically to exploit the potential of the web, our new banking platform delivers a modular solution addressing Consumer, Corporate and Investment Banking. Customers will be able to transfer funds, inquire balance, request for cheque book, pay utility bills on-line etc.

Visa Electron online debit card:

First time ever in Bangladesh!

EBL Introduces the Visa Electron online debit card:

Unique Features:

1. With EBL Visa Electron you can now draw cash from the Q-cash ATM network, 24 hours a day through out the year. No need to carry excess cash in your wallet. Your card is electronically linked to your EBL account.

2. EBL Visa Electron is also accepted at Visa merchants with Electronic P.O.S Visa Symbol, where you can pay for merchandise and services.

3. Acceptance - Hassle free acceptance at network of Q-Cash ATMs currently 10 and to be expanded up to 50 by July 2004 and approximately 1000 POS deployed in major cities.

4. Photo card - Displays your photo & signature on front of your card for enhanced security.

What else you can do:

1. Account balance checking from ATMs 2. PIN change facility 3. Cheque book request 4. Mini statement inquiry 5. Statement request

Additional EBL services:1. Avail EBL Internet Banking facility 2. Card for joint account holders as well 3. Real time online transaction. 4. Services of well-trained relationship managers at any of our 22 real-

time branches.

ATM Location Details:

1. EBL, Principal Branch, 10 Dilkusha Dhaka2. EBL, Mirpur Branch, Plot - 14, Main Road -3, Block-A, Sec -11, Mirpur Dhaka3. EBL, Uttara Branch, Plot- 1A, Road-4, Sector - 4, Uttara Model Town, Dhaka


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Eligibility:

Any EBL account holder can be issued the EBL Visa Electron. If you are an EBL account holder, just drop by at any of our sales and service centers, fill up an Application Form. We will courier your card within 7 working days. It is that easy!

Your EBL Visa Electron is the first of its kind in Bangladesh, exactly what you wanted. Become a proud member of EBL card family and discover the vast array of added conveniences- a new dimension in banking!

Utility Services Bill Collection:

1. WASA ( only Dhaka) 2. DESA ( Rajshahi, Bogra, Dhaka-Mirpur Branch) 3. PDB ( Chittagong, Rajshahi Jessore) 4. AKTEL

Internet Service Provider Bill

1. Proshikanet 2. Bdcom Online Ltd3. ConnectBd Ltd4. Access Telecom (BD) Ltd5. In-touch Communication Ltd6. Dhaka Broad Band Network (DBN)7. Spark System Ltd8. Agni Systems Ltd9. Touch Tone Bd Ltd

Tuition Fees Collection:

Scholastica ( Pvt) Ltd Scholastica Transport Service Ltd South Breeze Mirpur Bangla School Aga Khan Education Service System Shahid Smrity School

Student file:

EBL allows students who are going abroad to study to open an account in order to transfer funds to wherever they are going. We take the step to take the permission (if necessary) from Bangladesh Bank on behalf of the customers. For this we need all the documents of the student's previous completed education and his/her (s) acceptance letter from which ever University he/she is going.


http://www.ebl.com.bd/EBL_Visa_Form.pdf

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Corporate Banking:

Corporate Banking is an integrated specialized area of the Bank which addresses the diverse financial needs of Corporate Customers.

Local and Foreign Business Houses (Public and Private Limited Companies), NGO's , Associations , Not for profit Organizations , Sole Proprietorship Concerns and Various Government Bodies/Corporations etc are considered to be our Corporate Customers .

Corporate Banking has been established in EBL to cope with the banks strategy to transform into a Business Matrix from the existing Geographical Matrix Modules. Corporate Banking Relationship Teams based in Dhaka and Chittagong are available to understand your business and its requirements. They are specialists in developing high quality financial solutions and to assist you in achieving your business objective. Services provided by Corporate Banking are as follows:

Structuring of Facilities for Corporate Customers. Develops understanding of customer businesses and advises Financial

Solutions Advisory Services/ Financial Consultancy Arrange Loan Syndications Developing Relationship between the Clients and the Bank Processing credit facility requirements and arranging approvals for

credit facilities. Handles pricing issues and Wallet Sizing Exercises to maximizes the

earnings of the Bank as well as of the Client Coordinating service delivery of all EBL distribution channels viz. Sales and Service centers, Trade Services, Treasury, Credit issues as

required for the customer. Provides a one stop service for Credit facilities. Ensures Corporate customers' complaints and Service issues are

promptly addressed. Addresses Credit related issues. Coordinates activities of support unit Credit Administration unit which

prepares security documentation, security registration, and CIB related issues.

Coordinates activities of operating departments in obtaining Central Bank approvals where necessary.


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Services of Corporate Banking:

a. Structuring of Facilities for Corporate customers. b. Providing Financial Solutions c. Advisory Services d. Arrange Loan Syndications e. Developing Relationship between the Clients and the Bank f. Processing credit and other approvals for credit and other facilities. Provides an one stop service for Credit facilities. g. Handles pricing issues and Wallet Sizing Exercises to maximizes the earnings of the Bank as well as of the Client h. Coordinating service delivery of all EBL distribution channels (Sales and Service centers, Trade Services, Treasury, Credit issues as required for the customer. i. Ensures corporate customer's complaints are addressed. j. Relationship Teams of EBL are available to serve you.

Corporate Banking Relationship teams structure:

This comprises of Teams of Relationship Managers.

There are 5 Asset Teams and 1 Cash Management Team in Dhaka

There are 3 Asset Teams in Chittagong Both Dhaka and Chittagong Area have 1 Small Business Unit

each to handle requirements of small businesses (facilities below BDT 1.5 crores).

Corporate Banking Relationship Managers in each of the Outstation Branches for ensuring smooth and uninterrupted services to the Corporate Clients in Rajshahi , Jessore , Bogra , Khulna, Sylhet (Laldighir Par , Moulovibazar , Chouhatta ) .

The relation teams are composed of people specialized in dealing with the needs of business entities and coordinating EBL's service delivery across the EBL network.

Relationship Partners:

Corporate Banking believes in long term relationship. Corporate Banking is managing a well diversified portfolio and the priority is in the following sectors:-

Ceramics Tea


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Construction. Garments Textiles Service Pharmaceuticals. Health care Food & Beverages Poultry &

Hatchery Steel Industry Power car oil and

other infrastructure projects

Mobile Telecom Companies

Media Cement Soap &

detergents,cosmetics

Leather Paper and related

products

Shipping Airlines transport

Jute Building materials

finance Trades Computer &

Electronics Transportation Ship breaking Agro based Batteries and

related industries Commodities

import Steel products Chemical, plastic

& plastic products Edible oil Clinics, Hospitals

and NGO's Educational

Institutions Financial

Institutions Shrimp Export

II. Corporate Lending:

You will find an excellence inventory of products to match your business requirements. Product development is a continuous endeavor of the Relationship Teams to optimize the utility of Corporate Clients. The Product Inventory Shelve contains the following products from which you can choose any one or any combination that fits best with the requirements of your company. We tailor product to the requirements of each customers as required.


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Product of Corporate Banking:

SOD Secured Overdraft OD Overdraft CC (HYPO) Cash Credit against Hypothecation CC (PLEDGE) Cash Credit against PledgePC Packing Credit against Export L/C & Export OrderDemand Loan(Hypo)

Demand Loan against Hypothecation

Demand Loan (Pledge)

Demand Loan against Pledge

Time Loan Time Loan against Other Security/Collateral/SupportTerm Loan Term LoanSLC Sight Letter of CreditULC Usance Letter of CreditBBLC Back to Back Letter of Credit Import Loan (Hypo) Import Loan against HypothecationImport Loan (Pledge)

Import Loan against Imported Merchandise Pledged

LTR Loan Against Trust Receipt Acceptance Acceptance against ULC LBPD Local Bill Purchased DocumentaryFBPD Foreign Bill Purchased DocumentaryLAFB (CLEAN) Loan Against Foreign Bill CleanLAFBD Loan Against Foreign Bill DocumentaryLG Letter of Guarantee -BB / PG / APG / RB / Pay. Gtee BCP (Foreign) Bankers Cheque Purchase (Foreign) BCP (Local) Bankers Cheque Purchase (Local) Fwd FX Forward Contract


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SME Banking:

Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross domestic product (GDP) and 80% of the industrial jobs of the country in 2004. According to ADB, the country's estimated 6 million SMEs and micro enterprises firms of less than 100 employees have a significant role in generating growth and jobs. This is a sector that has its own distinct needs and requires specialized focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with this view in mind.

" Provide SMEs with easy access to financing." Deliver products that ensure superior returns to our customers." Orient customers with industry trends, regulatory issues etc, for their success." Value long term relationship banking.

In short, we want to be the partner in your success.

Customer Qualification:

" Your business can fall within any of these categories:(i) Manufacturing (ii) Trading (iii) Service" You should have at least 2 years of business experience (with proven track record)." The most important securities we look at are:(i) Business performance (ii) Industry reputation (iii) Experience

Our existing and prospective customers generally are in the following businesses:

(i) Manufacturing:

" Packaging" Flour Mills" Suppliers to MNC / LLC" Printing & publishing" Garments accessories " Furniture Pharmaceuticals

(ii) Trading:

" Distributors of Multinational Company (MNC) / Large local Corporate (LLC), Supplier of MNC / LLC " Importer of food & grain, dyes & chemicals, milk powder, motor parts, bicycle parts, motor car,


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electrical and electronic goods, hardware & machinery, poultry feed, garments accessories, construction materials, water pump and generator, cotton yarn, seed distributor, steel sheet, jewellery, edible oil and crude oil" Retailer of readymade garments and boutiques" Restaurant & fast food" Super market" Stationary items" Furniture & wood seller" Drug & medicine seller

(iii) Services:

" Educational institute" Travel agency" Advertisement firm" Shipping agents " Transport / container mover" Clearing & forwarding agent" Gas stations " Real estate companies" Contractors" Non profit organization" Clubs


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The Case for the SMEs

The SMEs worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages.

The case for fostering SME growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large-scale employment and income earning opportunities at relatively low cost for the un-and unemployed especially in the rural areas strengthening the efforts towards achieving high and sustained economic growth which are critically important prerequisites for triggering an exit from endemic poverty and socio-economic deprivation.

These promotional arguments for the SMEs, while universally emphasized are often put forward by their ardent advocates in a small versus large context and thus arouse serious debates concerning their economic viability. Much of such controversies may, however breakdown if the intrinsic virtues specific to SMEs and unavailable to large-scale industries are correctly identified and carefully exploited.

A combined interaction of the forces of product-mix, locational factors, technological advantages and market advantages create opportunities for SMEs to grow and prosper at all levels of development which are often ignored by the traditional approach to their economic strengths and development potentials.

The growing economic significance of the SMEs as sources of new business creation and employment generation in the developed, OECD countries especially since 1970s is now widely recognized in an increasingly growing volume of literature (OECD1997).

The recent structural shifts in industrial production from the Florist approach of mass production to more flexible and adaptable production regime in response to constantly changing market opportunities have led to a notable resurgence of these industries in the West. The re-emergence of the SMEs in the developed world makes economic case for fostering development of these industries stronger than ever before.


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Place of SMEs in the National Economy of Bangladesh

Any precise quantitative estimate of the importance of SMEs in Bangladesh economy is precluded by non-availability of comprehensive statistical informationabout these industries at the national level. The latest BSCIC estimates suggest that there are currently 55,916 small industries and 511,612 cottage industries excluding handlooms. Including handlooms, the number of cottage units shoots upto 600,000 units indicating numerical superabundance of the SCIs in Bangladesh.

Quoting informal Planning Commission estimates, the SMDF puts the number of medium enterprises (undefined) to be around 20,000 and that of SCIs to be between 100,000 to 150,000.

This wide variation in the BSCIC and Planning Commission estimates of the numerical, size of the SMEs might be due to at least two reasons: (a) different set of definitions of the SMEs and (b) different coverage of SME families.

This strongly suggests the need for adopting and using an uniform set of definitions for SMEs by all Government agencies to help formulation of pro-active SME promotion policies. Whatever the correct magnitude, the SMEs are undoubtedly quite predominant in the industrial structure of Bangladesh comprising over 90% of all industrial units. This numerical predominance of the SMEs in Bangladesh’s industrial sector becomes visible in all available sources of statistics on them (Ahmed, M.U 2001).

Together, the various categories of SMEs are reported to contribute between 80 to 85 per cent of industrial employment and 23 per cent of total civilian employment (SEDF, 2003)2. However, serious controversies surround their relative contribution to Bangladesh’s industrial output due to paucity of reliable information and different methods used to estimate the magnitude. The most commonly quoted figure by different sources (ADB, World Bank, Planning Commission and BIDS) relating to value added contributions of the SMEs is seen to vary between 45 to 50 per cent of the total manufacturing value added. While the SMEs are characteristically highly diverse and heterogeneous, their traditional dominance is in a few industrial sub-sectors such as food, textiles and light engineering and wood, care and bamboo products.

According to SEDF sources quoted from ADB (2003), food and textile units including garments account for over 60% of the registered SMEs. However, as identified by various recent studies, (Ahme, M.U. 2001, ADB 2001, US-AID


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2001) the SMEs have undergone significant structural changes in terms of product composition, degree of capitalization and market perpetration in order to adjust to changes in technology, market demand and market access brought by globalization and market liberalization.

The importance of the SME sector

• Employment of medium to low skilled workers.• Increased cash flow in Rural/Semi-Urban Areas.• Reduction of Poverty.• Reduce Urban Migration.• Development/Formation of Linkages .• Enhance living standards and consumption.• Economic Growth (GDP growth).• Creation of a semi-urban entrepreneur class.

Current Scenario of SME financing in Bangladesh

• Commercial Banks and Financial Institutions have incorporated SME banking.

• This done by only re-designing and scaling down their current financial products for the SME customer.

• Therefore expected value addition not created in SME financing, since it continues to be traditional financing.

• Micro finance institutions (MFI’s) haven’t yet entered the Small business market.


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Enhance Living

Standards

Employment

SME

Reduce Poverty

Economic Growth

Formation of

Linkages

Creation of Entreprene

urs

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SME Banking of EBL:

Small and Medium Enterprises (SME) in Bangladesh contributed 25% of

gross domestic product (GDP) and 80% of the industrial jobs of the

country in 2004. According to ADB, the country's estimated 6 million

SMEs and micro enterprises firms of less than 100 employees have a

significant role in generating growth and jobs. This is a sector that has

its own distinct needs and requires specialized focus. Eastern Bank Ltd.

(EBL) has launched SME Banking in early 2005 with this view in mind.

Provide SMEs with easy access to financing.

Deliver products that ensure superior returns to our customers.

Orient customers with industry trends, regulatory issues etc, for

their success.

Value long term relationship banking.

Customer Qualification:

Business can fall within any of these categories:

Manufacturing

Trading

Service

One should have at least 2 years of business experience (with proven


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track record).

The most important securities we look at are:

Business performance

Industry reputation

Experience

Products and Services (Mid Segments):

Financing Amount:

Facilities range upto Tk. 5 crore for one or multiple product(s);

products are suited for all types of business needs in every stage of

your business, which falls in cash management, lending, and trade

services categories. The products are:

Cash Management:

Current Account

Transactional account with cheque book and debit card facilities, along with online and internet banking.

Short Term Deposit (STD) Account

Interest bearing account that can be linked to the current account to combine the facilities of both accounts.

Fixed Deposit (FD)

High interest bearing time deposit that has to be kept with the bank for a time period to earn the interest.

Lending:

Overdraft/Cash Credit

Fully secured line of credit with a tenor of 12 months and can be renewed on maturity.

Demand Loan Loan for financing inventory procured locally or financing duty/tax against hypothecation of inventory and book debts.

Time Loan (Work Order Financing)

Loan for short term need against work order from reliable benefactor.

Term Loan Long term loan to finance fixed asset against


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hypothecation of the fixed asset.

Trade Services:

Letter of Credit Financing of import of goods against title of the documents or sales.

Import Loan Financing of imported merchandise against hypothecation or pledge of inventory or book debts.

Guarantee Bid bond, performance guarantee, and payment guarantee for contractual obligation.

Local Bill Purchase

Purchase or discount of local usance L/C with upfront realization of interest.

Foreign Bill Purchase

Cash against documents or negotiation of export document against sight or usance export L/C.

Products (Small Segments):

EBL ASA

Any business purpose loan from Tk. 200,000.00 to Tk.

1,000,000.00.

To be repaid within maximum 24 months (next loan is

payable within 60 months).

No requirement for collateral security.

Loan repayable in equal monthly installment.

EBL PUJI

Any business purpose loan from Tk. 1,000,000.00 to Tk.

5,000,000.00.


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To be repaid within maximum 36 months (next loan is

payable within 60 months).

Collateral security required along with charge on

business assets.


EBL UDDOG


5,000,000.00.

Without land/building mortgage.

To be repaid within 60 months.


50% of the loan amount in the form of fixed deposit is

needed.

EBL AGRIM


950,000.00.

No collateral security required.

Lone tenure 1 month to 6 months.

Single shot payment at maturity but interest will be

realized on monthly basis

Partial payment and early payment allowed no additional

fee required.


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Credit Rating of Eastern Bank Limited

RATIONALE

CRISL reaffirms “A” rating to Eastern Bank Limited in long term and St-3 rating for short term. It has been done on the basis of good fundamentals such as satisfactory capital adequacy, good asset quality, diversified product lines, significant non funded business, experienced top management etc. However the above factors are moderated to some extent by limited market share, dependency on term deposit, high loan to deposit ratio etc. Financial Institutions rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in the higher categories. The short term rating indicates good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small.

PREVIOUS RATING

CRISL earlier assigned “A” rating in the long term and ST -3 rating in the short term to Eastern Bank Limited on the basis of its strong fundamentals such as satisfactory capital base, strong non funded income base, diversified product line, satisfactory asset quality and prudent investment policy. However, the above ratings are constrained to some extent by the limited market share, marginal liquidity position, dependency on term deposits etc. These ratings were assigned on the basis of financials up to 30th June 2006. Financial Institutions rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. The short-term rating also indicated the high certainty with regard to the obligor’s capacity to meet its financial commitments.


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Credit Rating of EBL


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EBL started its journey from a meager information technology platform. The branches were operating in a standalone/decentralized environment using a local software where limitations were in abundance. It was limited from the delivery channels perspective for providing the customers with maximum benefits in terms of banking products and services. The most private banks in Bangladesh generally have been less competitive with their MNC bank counter parts. The sense of customer support and service at these private banks, literally, were not up to the par with what the customers came to expect from these MNC banks. So, for obvious reasons privates started loosing businesses to these MNC banks.

Eastern Bank Limited Provides Online banking services, E-commerce Banking, EBPP Services, E-Banking Facility, E commerce Transaction, E-commerce Banking could be provided effectively. All the branches of Eastern Bank Ltd will come under one online Banking network so that clients will enjoy the Online banking services in Bangladesh. Eastern bank Ltd will help to enjoy Online banking service in Bangladesh. Electronic Banking service in Bangladesh is provides a new step of Electronic Banking in Bangladesh. Eastern bank ltd also helps for real time banking in Bangladesh.

EBL management consisting of dynamic bankers from foreign banks working environment could assess the benefits out of Information Technology [IT] in utilizing it to the maximum through their experience. Their guideline and streamlined decision making has played a pivotal role in the implementation process of Flexcube software in the branches.

EBL is the pioneer Bank in laying foundation to the world class banking software in Bangladesh. No other private Banks in Bangladesh could implement foreign banking software with success in the past.

The concerned IT resources worked relentlessly over the months played a significant role behind the successful implementation of Flexcube banking software in EBL branches.

Essentially, EBL was not in a well connected situation. Data Communication was limited to secluded offices in a very limited fashion. EBL now is a different scenario. EBL HO is now connected with the branches all around Bangladesh. Here is a breakdown of what the data communication infrastructure looks like today:

• High Speed DDN and Radio Link connectivity between Branches and the Head Office. • Local Area Network (LAN) - providing data network connectivity at the Head Office and the Branches.• Metropolitan Area Network (MAN) - connecting the DHK branches with HO, CTG branches with Agrabad and SYL branches with Chouhatta.• Wide Area Network (WAN) - enabling the data network circle between Head


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Office and the Branches.• Solid foundation over data and network security implementation.

EBL wanted to stand up in the crowd. For moving out of the ramshackle, EBL management under the dynamic leadership of the honorable Directors of the Board switched over to a centralized platform using a world renowned banking software which was the #1 most popular software in the world for the year 2003. The result has been incredible. We list a few of the benefits of centralization here.

At a glance - Benefits from Changes

Standalone systems = > Centralized system Branch Banking = > Anywhere Banking

Anywhere Banking = > EOD at Data Centre Telegraphic Transfers = > Online Inter-branch transfer

Hold accounts = > Online Inter-branch transfer Produce MIS at Branch = > Centralized MIS

Poor ‘Control’ reports = > Improved ‘Control’ reports Audit needs branch visit = > MIS available at Head Office

Information on paper = > Information in CIF On Card Signature/Pix = > Digital Signature/Pix

No Funds Management = > Automatic Sweep-in/Out

EBL Banking Benefits:

Flexcube banking software automated in all branches of EBL has the adaptability for incorporating the delivery channels like, Internet Banking, Tele-Banking, ATM/POS, Home Banking, Wireless Access Protocol, Call Centre are all superb services which a customer can avail in due course.

EBL’s repertoire of hardware is highly sophisticated as no other banks in Bangladesh has availed this in recent times. The combination of hardware will help consolidate the backbone for the plethora of services provided to the customers by the Bank for the years to come. Moreover, EBL, country wise bade farewell to the lackluster range of hardware which were in use over the years.

Anywhere 24 hours X 7 days banking Internet banking, Tele banking and ATM/POS One Stop Shop for all your banking need Significantly reduced time in banking transactions Sophisticated Customer Information at the fingertips and can be

provided anytime


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Online Inter-branch Transfer Any Branch Pay Order System Digital Signature/Photo image while transacting Display Customers Balance, Transactions, Statements online Automatic Sweep in & out Locker Service Availability EBL 5 to 9 Extended Service Bill payment

o Utility Services Bill o Tuition Fees o Mobile Phone Bills

Versatile Products availability Fast Cash Fast Loan Auto Loan Consumer Loans High Performance Account Savings Insurance Account Monthly Income Plan Monthly Deposit Plan

EBL Internet banking application addresses the needs of small, individual and corporate account holders of the bank. This application provides a comprehensive range of banking services that enable the customer to meet most of their banking requirements over the Net.


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BIBLIOGRAPHYBIBLIOGRAPHY

1. “Financial Management” by P K Jain

2. “Financial Management” by Van Horn

3. “Basics in Report Writing” by Leisikar

4. www.ebl.com.bd

5. Annual Report- Eastern Bank Limited, 2004



8. Hemple & Johansson, “Bank Management”, fifth edition


Documents

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