Chapter One Introduction 1. 1 Introduction Premier Bank Ltd is a scheduled commercial bank of Bangladesh. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. It is one of the fast growing leading online banks in private sector. This is a descriptive report on Premier Bank Ltd. that mentions the activities of General Banking and other activities of the bank. 1. 2 Origin of the study

As a part of the requirement of the MBA program of the Faculty of Business Studies of World University of Bangladesh. The topic of the study is General Banking Activities of Premier Bank Limited. 1. 3 Objectives of the study ? To present an overview of Premier Bank Limited. ? To acquire practical experience in different banking services of Premier Bank Limited. ? To identify the financial strength and weakness of Premier Bank Limited. 1. 4 Scope of this study Premier Bank Ltd. is one of the leading banks in Bangladesh. The scope of the study is limited.

The dissertation covers the organizational structure, background, functions and the performance of the branch as well as the bank. The scope of the study is just to acquaint with the operational scenario of Premier Bank Limited. For the bindings of security all the data could not be enclosed in this dissertation. 1. 5 Study methodology Primary and secondary data has been collected for my dissertation. So this dissertation is based on both primary and secondary data. Primary Sources Primary data are collected by: ? Face to face communication with employees of the Premier Bank Ltd. ? Previous performance matters booklet. Data collected from internal report. Primary data has also been collected by face-to-face conversation with the officers of some other Banks. Secondary sources Secondary data has been collected for my dissertation from: ? Annual performance report of Premier Bank Ltd.. ? Bank records ? Journals of the Bank ? Different books, training papers, manuals etc. related to the topic. ? Official Website of the Bank ? Annual report of Prime Bank Ltd.. 1. 6 Limitations The present study was not out of limitations. But it was a great opportunity for me to know the banking activities of Bangladesh specially Premier Bank.

Some constraints are as follows: ? The main constraints of the dissertation are inadequate access to information, which has hampered the scope of analysis required for the dissertation. ? Every organization has their own secrecy that is not revealed to others. While collecting data they did not disclose much information for the sake of organizational confidentiality. ? The bank personnel and officials were very busy with their occupational activities. Hence it was little bit difficult for them to help within their high schedule. ? Due to time limitations many of the aspects could not be discussed in the dissertation. Lack of current information. ? Very limited published material is available regarding the bank. Chapter Two LITERATURE REVIEW 2. 1 ABOUT BANK The word ‘bank’ comes from the Italian word ‘Banco’ or ‘Banque’. Banco or Banque means a bench. In early stage money transaction activities was generally done by sitting on the benches in a market. Some body says the word ‘bank’ comes from the German word ‘bank’ that means the joint stock fund. But now this word ‘bank’ deals with the money transaction that made in an institution by following some prescribed rules.

The development of a country depends on the economic condition of the country. Attainment of the desired level of economic development is targeted by the developing economics for a number of reasons viz. increasing population, scarce resources, high rate of unemployment, technological backwardness, low level of standard of living, etc. the process of economic development needs capital formation besides other structural changes like improvement in skill and efficiency of manpower, better organization, health and education system, etc. Capital formation is deemed as the most significant variable of economic development.

An efficient and well-organized financial system contributes to the much- desired economic development through capital formation, which can be divided into three stages viz. , savings, financing and investment. Banks play a dynamic role in the economic development of a nation. Schumpeter regarded the banking system as one of the two key agents (the other being entrepreneurship) in the whole process of development. Historically, the focus of the commercial banking system was entirely short term, providing only working capital and trade finance. But the areas of commercial banking have been expected over time.

In the universal banking system of Germany, commercial banks are also an important source of investment finance. They function like investment banks and provide underwriting and brokerage, and they also have considerable control over firms both through their own equity holding and proxy votes for private investors, and by appointing representatives on the boards of firms. 2. Banking in Bangladesh The age of banking in Bangladesh is as old as the country itself and it is developing with the country or in other words it can be said that the country is developing along with the Banks.

Because there is no denying the fact that overall socio-economic development of the country depends largely on the performance of the banking sector. Banking system in Bangladesh was virtually in a state of disarray immediately after liberation in 1971. It may be pointed out that on the eve of our independence only one bank in this country was fully owned by Bangladeshi while all the others were owned and operated by Pakistanis who had just left and abandoned these enterprises. Partly because of the manifesto of the then ruling party and partly because of the need of the hour, the Govt. ad to nationalize the entire banking system. All the domestic commercial banks were thus reorganized into six separate entities e. g. Sonali, Janata, Agrani, Rupali, Uttara and Pubali Banks. Leaving aside the three foreign banks, the other two specialized banks were also nationalized and restructured as Bangladesh Krishi Bank and Bangladesh Shilpa Bank. Simultaneously through the promulgation of the Bangladesh Bank Order 1972 (President’s Order no 127 of 1972) the Bangladesh Bank was brought into force as thecountry’s central Bank with effect from 16th December 1971.

The new central bank, in addition to its normal function of monetary, exchange rate and credit management, was assigned the promotional role of developing the banking system while overseeing it and boosting the country’s economic development through maximum utilization of domestic resources and employment generation. At present there are 50 scheduled bank including 4 Nationalized commercial bank (NCBs), 5 Govt. owned Development Finance Institutions (DFIs), 30 Private Commercial Banks (PCBs) and 11 foreign commercial banks (FCBs) having network of 6271 Branches spread all over the country.

Initially the banks in Bangladesh were assigned a developmental role and special emphasis was laid on spreading the branch network and lending to priority sectors as per the directives and guidelines given by the central bank and Government. As a result the number of branches which had stood at 1299 in 1972-73 and went up to more than 6000 by the year 2002, while total bank deposit had also gone up from Tk. 712. 40 crore in 1972-73 to Tk. 1023 crore by 2002.

Despite the aforesaid expansion and introduction of private commercial banks aimed at expanding in a spirit of competition, the health of banking sector in Bangladesh was showing signs of steady deterioration due to inefficiency and corruption. All these necessitated the setting up of a National Commission on money, banking and credit in 1984 which had submitted its report to Govt. in 1986 after having reviewed the entire banking and credit system. On the basis of the report and recommendation of the World Bank, the Government initiated the Financial Sector Reform Program (FSRP) in 1990.

The main objectives of the FSRP were: ? Deregulation of interest rate. ? Pursuance of monetary policy with indirect means of control. ? Strengthening the operational efficiency of banks. ? Establishment of appropriate accounting standards and modes of recapitalization. ? Improvement in Bangladesh Bank’s prudential regulation capability. ? Development of human resources in the banking sector and improvement in the process of loan recovery Although FSRP introduced a number of changes in the banking system, there is still a lot of to be done. Accordingly the govt. nitiated the Commercial Banking Restructuring Project (CBRP) in 1997 to ensure the continuity of the reforms as well as to attain the following objectives: ? Strengthening bank management with increased accountability, improved auditing and loan management practices and procedures. ? Improving the legal environment for debt recovery. ? Modernizing the technology in the banking sector ? Restoring the capital adequacy of banks on risk weighted assets. ? Improving income position of banks. ? Strengthening the supervisory and monitoring capacity of the central bank.

Finally it can be said that the banking sector in Bangladesh has substantially improved during last few year with interest rates almost fully liberalized and made market oriented. Since directed lending is no more there and banks are free to make their own lending/ borrowing decisions they are expected to operate with increased efficiency in the days ahead provided they do not abandons the track of constant reforms which actually means change for the better for all concerned including banks, clients, and public at large. Nevertheless, it depends on the honesty, integrity and efficiency to those who run the affairs of banks. 2. Functions of Bank Generally the word “Bank” we can easily understand that the financial institution deals with money. But there are different types of Banks like, central bank, commercial banks, savings bank, investment banks, industrial banks, co-operative banks etc. But when we use the term “Bank” without any prefix, or qualification, it refers to the ‘commercial bank’. Commercial bank are the primary contributors to the economy of the country. So we can say commercial bank is a profit-making institution that holds the deposit of individuals and business in checking & saving accounts and then uses this funds to make loans.

For this people and government is very much dependent on this bank as the financial intermediary. As, banks are profit-earning concern; they collect deposit at the lowest possible cost and provide loans and advances at higher cost . The difference between two are the profit for the bank. Banking sector spending its hand in different financial event every day. At the same time the banking process is becoming faster, easier and the banking arena is becoming wider. As the demand for better service increase day by day, they are coming with different innovative ideas & product.

In order to survive in the competitive field of the banking sector, all banking organization are looking for better service opportunities to provide their fellow clients. As a result, it has become essential for every person to have some idea on the bank and banking procedure. 2. 4 Banking Industry-An Overview The Banking Industry is Bangladesh is one characterized by strict regulations and monitoring from the central governing body, the Bangladesh Bank. The chief concern is that currently there are far too many banks for the market to sustain.

As a result, the market will only accommodate only those banks that can transpire as the most competitive and profitable ones in the future. Currently, the major financial institutions under the banking system include: ? Bangladesh Bank ? Commercial Banks ? Islamic Banks ? Leasing Companies ? Finance Companies Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11 foreign banks, 26 domestic private banks and 4 Islamic Banks currently operating in Bangladesh. 2. 5 Current Structure of banking institutions in Bangladesh is shown in the following figure:

Chapter Three Historical Background and Current Performance of Premier Bank 3. 1 A History of Success : Growing Deep, Spreading Wide. With a decade long history of glory and success, The Premier Bank Limited has rooted deep into a massive capital base and spread far and wide to a larger network of Branches, ATMs and SME channels. The Bank, a pioneer of many innovations, is now expanding fast to the extent of higher market share and significant growth in assets. So far, this Bank has won the loyalty of a strong customer base that numbers a total of more than 1. Lac at the end of 2009. To light up the spirit of 21st century, telling mostly of cutting-edge techniques, a visionary entrepreneur cum industrialist Dr. H. B. M. Iqbal laid the foundation of Premier Bank in the year 1999. As a company that understands and reflects human motivation and values, the Bank started working with a passion “Service First” to stand out in the crowd as a house of banking excellence. After a decade of competition, the Bank has reinforced a safe, sensible forward and speaks volumes about the depth of business performance and achievements.

They are now a competent service provider for private and business customers as well as small and midsized companies in addition to serving large and multinational corporate. As a capable absorbent of financial shocks, a much talked matter-of-the-day, they have based their foundation strong with a capital base of Taka 4965 million. Some 38 Branches and 5 SME centers have strengthened their nationwide network with an ambitious target of 50 Branches and 10 SME centers by 2011. Their wings of operation have widened up to SME potentials, agricultural prospects and capital market opportunities.

Premier customers have continued to enjoy an increasingly broad and attractive range of products and services. High aspiration grows amid rising whispers that it is time for our stakeholders to partner with a fearless voyager that plucks the benefits for whom it stands for. 3. 2 Corporate Information: • Background The Premier Bank Limited is incorporated in Bangladesh as banking company on June 10, 1999 under Companies Act. 1994. Bangladesh Bank, the central bank of Bangladesh, issued banking license on June 17, 1999 under Banking Companies Act. 991. The Head Office of The Premier Bank Limited is located at Banani, one of the fast growing commercial and business areas of Dhaka city. • Corporate Information:Authorized Capital : BDT 6000. 00 Million Paid up Capital : BDT 2242. 30 Million Registered Name of the Company: The Premier Bank Limited Legal Form : A scheduled Commercial Bank incorporated on June 10, 1999 as Public Limited Company under companies act, 1994 and Bank companies act, 1991.

Registered Office:Iqbal Centre (4th Floor), 42 Kemal Ataturk Avenue Banani, Dhaka- 1213, Bangladesh Tel: 9887581-4, Fax: 8815393, 9889153 Incorporation Certificate: C- 37922 (2222)/99, dated June 10, 1999 Commencement of Business Certificate: Ref. no. 16370, dated June 17, 1999 Bangladesh Bank Approval Certificate: BRPD (P) 744 (72)/99- 1638, dated June 17, 1999. Bangladesh Bank Approval Certificate: BRPD (P) 744 (72)/99- 1638, dated June 17, 1999. VAT Registration: 5101027082, dated July 31, 2000. TIN Certificate: 140-201-0820, LTU, Dhaka, dated October 17, 2000

Auditors Hoda Vasi Chowdhuri & Co. Chartered Accountants Ispahani Bhaban (3rd Floor) 14-15 Motijheel C/A, Dhaka-1000 Corporate Website: www. premierbankltd. com Legal Advisor M/S Rokanuddin Mahmud & Associates, Walsow Tower 21-23 Kazi Nazrul Islam Avenue, Dhaka. 3. 3 Organogram of Premier Bank Ltd. : [pic] 3. 4 Vision of the Bank The Bank has clear vision towards its ultimate destiny – to be the best amongst the top financial institutions. 3. 5 Missions of the Bank • To be the most caring and customer friendly provider of financial services, creating opportunities for more people in more places. To ensure stability and sound growth whilst enhancing the value of shareholders investments. • To aggressively adopt technology at all levels of operations to improve efficiency and reduce cost per transaction. • To ensure a high level of transparency and ethical standards in all business transacted by the Bank. • To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the Bank. • To be socially responsible and strive to uplift the quality of life by making effective contribution to national development. 3. 6 Values of the Bank: ) Service First For Premier Bank ‘Service First’ is not just an abstraction; they do mean it. It holds a prime and central focus in their operation. They believe, discharge of quick & quality service is the hallmark for banking standard. b) Easier Banking They have make day-to-day banking easier than ever through state of the art facilities. They tend to create a congenial atmosphere for the customers to feel free and go easy with banking. They divide their clientage into least possible individuals to impart the best attention, and they tailor made their services to meet special needs. ) Better Relationship As they form bondage with their valued clients, so we develop it into a sustainable end. A good understanding with them, while carrying out business transactions, helps the bank perceive their goals and thus, enable to respond pro-actively to their financial needs. d) Assured Confidentiality Since they deal in business in the form of financial loss or gain, their solemn promise remains intact with interest of their clients so much so that all banking transactions are done in a confidential & professional manner. e) Good Corporate Governance

They set their goal from what lies behind and beyond us. They begin in earnest to finish in time to pursue that goal. Put First Things First They make a choice for things that make an upbeat difference. Things that matter most are not put at the mercy of things that matter least. Think Win-win Win-win is a frame of mind and heart that constantly seeks mutual benefit an all human interactions. In their philosophy, they want to see all parties an optimistic winner. A forward looking planning helps us engage in a win-win relationship. Seek first to understand and then be understood

They prize their ability to communicate over all other values. Most of the time, they patiently hear people more than they are heard. They seek first to understand how they are expected- then they position themselves as befittingly as they can. Synergy The effect of a combined whole is always greater than the sum of individual parts. The relationship which the parts have to each other is a part in itself. They believe, every part is important and each can contribute. They work together with others to build a team work those results in a better success. Care and Share Alike for The Society

They care for the feelings, needs and experience of the society and share our interests equally. They try hard to provide for the less privileged and have-nots to ensure a better society and a more prosperous Bangladesh. It is an honor, our duty and privilege, to be able to serve the nation in more ways than just providing banking services. 3. 8. 2 Priorities 1. They want to be the best bank in Bangladesh 2. They want to deliver services of high standard so that we become “A Bank by Choice” 3. They want our asset quality to be the best in industry with Non Performing Loans (NPL) below 1%.

We want a high degree of credit quality so that selling or recalling a loan is left to our discretion. 4. They want their financials and ratios to be strong and better than industry standard with Return On Assets (ROA) not less than 2% and Return On Equity (ROE) not less than 50% on net income basis. 5. They want their staff to understand customers’ need and offer the best solution in the market. We want them fully conversant with the rules and regulations relevant to banking reading books and browsing internet. 6. They want to a fully compliant bank in line with guidelines of Bangladesh Bank and other regulatory bodies.

We want Basel-II fully implemented. 7. They want to be rated as one or strong under CAMELS rating 8. They want to be the bank that is respected and adored by our regulators and peers in the banking sector 9. They want to be a bank where people are happy and satisfied to work and can build a career of their liking. 10. They want to create more values for our shareholders with a good return on their investment. 3. 9 Confidence of the Bank: 1. The short and long term prospects of the bank are endless. 2. They have the right and workable strategies in place. 3. The bank is supported by a solid capital foundation. . Strong diversification by business line, geography and products add up to our strategic advantage. 5. A good risk management and compliance culture 6. A strong focus on quality control 7. A dynamic Board of Directors 8. A competent Management Team 9. A great human resources 3. 10 Assets of the Bank in 2009: Total Assets of 47343. 24 million, indicating an increase of 22. 26% over 2008 was attributable mainly to a growth of 3,345. 06 million in the Loans and Advances portfolio. As at December 31, 2009, Loans and Advances as percent of total assets was 71. 11% as compared to 78. 30% at the end of year 2008. pic] 3. 11 Liabilities of the Bank in 2009: Customers’ Deposits grew by Taka 5,322. 34 million or 16. 60% to Taka 37,381. 96 million as the year-end 2009 from 32,059. 62 million at the end of 2008 with all segments of business showing growth with emphasis on generating core low cost deposits. Borrowings from Banks and Financial Institutions including refinance facility from Bangladesh Bank stood at Taka 1,931. 00 million at year-end 2009, against year-end 2008 levels to Taka 104. 10 million. At year-end 2009, the ratio of customers’ deposits to total liabilities stood at 87. 53% compared to 90. 4% at the end of preceding year. [pic] 3. 12 Deposits in the Year 2009: Inevitably deposit builds up the foundation of operating liabilities of the bank. In quest of deposit mobilization the bank continued to succeed during 2009 with a record level of deposit balance of Taka 37,381. 96 million from Taka 32,059. 62 million in 2008 manifesting a growth of 16. 60 percent. Deposit Bland of the bank in 2009 [pic] 3. 13 Financial Highlights of Premier Bank for Five Years 2005-2009: Capital structure of Premier Bank has changed from year to year. The components of the capital structure are paid-up capital; proposed issue of ividend, share premium, statutory reserve, proposed cash dividend, retained earnings and other reserve. 3. 13. 1 Authorized and paid up capital of Premier Bank: |Authorized Capital (TK) In Million |Year |Paid Up Capital (Tk. ) In Million | |6000 |2009 |2242. 28 | |2000 |2008 |1689. 99 | |2000 |2007 |1689. 99 | |2000 |2006 |845. 0 | |2000 |2005 |557. 55 | [pic] 3. 13. 2 Deposit Position of Premier Bank: |Year |Amount Of Deposit (Tk In Million) | |2009 |37381. 96 | |2008 |32059. 62 | |2007 |27114. 47 | |2006 |24199. 1 | |2005 |20290. 47 | [pic] 3. 13. 3 Loans and Advance: |Year |Amount (TK In Million) | |2009 |33664. 59 | |2008 |30319. 53 | |2007 |23637. 61 | |2006 |20677. 8 | |2005 |18032. 50 | [pic] 3. 13. 4 Operating Profit: |Year |Amount (TK In Million) | |2009 |1391. 87 | |2008 |1272. 94 | |2007 |998. 11 | |2006 |942. 7 | |2005 |899. 03 | [pic] 3. 13. 5 Total Asset: |Year |Amount (TK In Million) | |2009 |47343. 24 | |2008 |38723. 49 | |2007 |32573. 19 | |2006 |27170. 5 | |2005 |22767. 84 | [pic] 3. 13. 6 Foreign Trade: |Year |Amount (TK In Million) | |2009 |56470. 03 | |2008 |59546. 70 | |2007 |43222. 20 | |2006 |38797. 18 | |2005 |33850. 3 | [pic] 3. 14 Islamic Banking Operation: Islamic Banking system has now-a-days become a reality all over the world. It is widely accepted and liked not only by the Muslims but also Non Muslims. The Premier Bank Limited has launched Islamic Banking Operation through its two (2) branches: 1. Islamic Banking Branch, Mohakhali, Dhaka. 2. Islamic Banking Branch, Laldighirpar, Sylhet. In order to ensure smooth operation of Islamic Banking and proper guideline, the Bank has a Shariah Council consisting of renowned Scholars, Alem, Faqih, Lawyer, Islamic Banker and Philosopher.

You can get Islamic Banking Services from any Branches of the Bank through “Islamic Banking Help Desk” as exist at every conventional Branch. Deposit Products of Islamic Banking • Al-Wadiah Current Account • Mudaraba Savings Account (MSA) • Mudaraba Term Deposit Receipt (MTDR) • Mudaraba Special Notice Deposit Account (MSNDA) • Mudaraba Premier 50+ Account • Mudaraba Premier Genius Account • Mudaraba Monthly Savings Scheme (MMSS) • Mudaraba Monthly Income Scheme (MMIS) • Mudaraba Education Savings Scheme (MESS) • Mudaraba Special Deposit Scheme (MSDS) • Mudaraba Double Benefit Scheme (MDBS) Mudaraba Hajj Saving Scheme (MHSS) Note: The benefit amount from these deposit products can vary depending on the overall Profit/Loss and the weightage. Investment Schemes of Islamic Banking Different Investment Schemes of our Islamic Banking Operation may be categorized under three basic parts. They are as follows: • Buying-Selling Mode (a) Bai Murabaha (Sale in cash or differently), (b) Bai Muajjal (Sale under deferred payment), (c) Bai Salam (Advance Purchase), (d) Bai Istisna (Progressive Financing) • Sharing Mode (a) Murabaha (Sharing), (b) Musharaka (Partnership) Leasing or Ijara (a) Leasing where the leaser (Bank) retains ownership of the assets and the lessee (client) possesses the right to use the assets on payment of specified rent over a period. (b) Hire-purchase under Shirkat Al-Mielk: Under this system, the bank finances to purchase the machineries, equipments, consumers’ durables etc. under a joint ownership agreement subject to ownership ratio as per equity. Following Investment products are conducted under the Islamic Banking System: • Consumer Investment Scheme • Housing Investment/Apartment Finance • Doctors’ Investment Scheme Rural Investment Scheme • SME Investment • Women Entrepreneur Investment Scheme • Lease Finance • Project Finance • Student’s Investment Scheme 3. 15 Premier SMS Services: Premier Bank launched Premier SMS (SMS Banking Service) on 30 January 2006 at Pan Pacific Sonargaon Hotel, Dhaka. Meet the instant e-Age banking tool In today’s business environment, with so many deadlines to fulfill, appointments to meet and meetings to attend, you are hard pressed for time. Don’t you wish you could do all your important activities while traveling from one meeting to another?

As a leading private sector bank in Bangladesh, the Premier Bank Limited presents SMS Banking Service. Now you can be informed about banking transactions and inquiries through our SMS Banking service. You can check your balance, stop a cheque payment, or even get your statements. Our SMS Banking service provides you with real time account information management by using mobile phones and instruction capabilities from the mobile phones at a true “anywhere, anytime, anyhow” convenience. SMS (Short Message Service) Banking is one of the modern banking features. This is the most convenient, low-cost and quickest way for banking.

The service is available round the clock seven days a week. Premier Bank SMS Banking brings your bank accounts to your fingertips. It works using Short Messaging Service (SMS) technology. Finally, an account that travels with you, anywhere you go! 1. To get the SMS service: Premier SMS service is totally free for our customers. After registration the password/PIN will be sent to your mobile number. Send SMS using PIN to Mobile No. 01714047799 for Premier SMS. Just visit any of the bank’s branch or download the application form (at the Leaflet Page -2) and get registered providing the following information.

I. Account Name II. Mobile Number III. A/C number – 15 Digit (including branch code and check digit) 2. Available Services: Inquiry a) Account Balance b) Last 3 Transactions c) Cheque Leaf Status Request a) Statement to be picked up from branch b) Statement through email c) Statement by post/courier d) Cheque Book request e) Stop payment request Notifications a) Balance Alert (If the balance crosses certain limit) b) Transaction Alert c) Special day message fixed by Premier Bank Related Downloads a) Premier SMS Leaflet page 1 b) Premier SMS Leaflet page 2 ) PowerPoint Presentation on Premier SMS 3. 16 International Services The International Division is looking after Correspondent Banking Relationships, Treasury Back Office and International Trade Settlement. In order to smooth global operation of international business we have correspondent banking relationship with 430 foreign banks around the globe and maintain 19 Nostro accounts in 9 currencies to service our customers. Bank is providing the facility of Letters of Credit, handling of Import Bills, issue of Shipping Guarantees, acceptance of Bills, financing of Imports.

Advising of Export Letters of Credit, Confirmation of Letters of Credit, Assistance in preparation of Export documents, Negotiation of Letters of Credit, Handling Export bills on Collections, Purchase/Discount of Export bills, Pre-shipment facilities are extended for both domestic and foreign trade. The requirement of letters of guarantee, Bid Bonds, Performance Bonds, Advance Payment Bonds for infrastructure projects in Bangladesh, participating in tenders or any other need basis, could be channeled through us for speedy delivery at competitive tariffs. . 17 About Premier Bank Visa Credit Card The Premier Bank is a 3rd generation private Bank that has been approved as a Principal & Plus Member of VISA International. We have launched our prestigious VISA Credit Card Services, a first of its kind by a local private Bank in Bangladesh. This is no doubt an exciting addition to our product line that not only brings additional satisfaction to our customers but also helps us achieve our goal in customer services. 3. 18 About the Premier TC (Travel Card) Premier TC” is prepaid foreign currency card denominated in USA dollar available over the counter of the branches that makes your foreign trip totally hassle-free and convenient. You can load this prepaid card with foreign currency in Bangladesh which gives you a 24-hour access to your money. This card can be used to withdraw cash in the local currency from over 1 million VISA ATMs and shop at over27 million merchant establishments accepting VISA Flag cards from the country they are traveling to. The card is sold from Premier Bank branches and Card Division.

With “Premier TC” you can attend to your business, enjoy the delightful tourist spots, dine out, and take in the breathtaking landscape and exotic culture of the country without worrying about money changers and converting your traveler’s cheques into local currency. 3. 19 Customer Services ? Islamic Banking Service Islamic Banking system now-a-days becomes a reality all over the world. It is widely accepted and liked not only by the Muslims but also Non Muslims. We offer Islamic Banking Services under the principle of Shariah.

In order to ensure smooth operation and proper guideline, the Bank has a Shariah Council of renowned Scholars, Alem, Faqih, Lawyer, Islamic Banker and Philosopher. You can get Islamic Banking Services from our two (2) Islamic Banking Branches at Mohakhali, Dhaka and Laldighirpar, Sylhet or from other branches of the Bank through “Islamic Banking Help Desk” as exist at every conventional Branch. ? Online Banking Our Real Time Online Banking Service gives you convenience of any branch banking facility.

You can easily carry transaction of your account from any of our branches. All of our branches have online banking facility. ? Brokerage House In order to enhance involvement of investors in the capital market, The Premier Bank Limited has inaugurated its modernly equipped full facilitated Brokerage House on 12th floor of Head Office at Iqbal Centre, Banani. Moreover, we have recently opened another Brokerage House at Motijheel Commercial Area. We are also opening Branches to different locations very soon. ? Premier TC Premier TC” is a pre-paid foreign currency Travel Card denominated in US dollar available over the counter of the branches that makes your foreign trip totally hassle-free and convenient. You can load this pre-paid card with foreign currency in Bangladesh which gives you 24-hour access to your money. This card can be used to withdraw cash in the local currency from over 1 million VISA ATMs and shops at over 27 million merchant establishments accepting VISA Flag cards from the country they are traveling to. Issuance of Premier TC is free of any charges. ? Remittance Service

Their Remittance Payment procedure is very safe, simple and fast. The Bank has signed a good number of long term deals with a group of well-connected remittance partners across the globe such as MoneyGram, Dolex, Xpress Money Services and Western Union etc. They have developed their own remittance distribution software “DRUTI”. In addition to our 43 branches, we have agreement with GrameenPhone (1,40,000 outlets), Jagarani Chakra Foundation (250 outlets) and General Post Office – GPO (10,000 outlets) to use their mobile technology and wide distribution outlets around the country to easily distribute inward remittance.

With a view to channeling the homebound foreign remittances from Bangladeshi expatriates, the Bank has decided to open 100% owned subsidiary Exchange Company of Premier Bank in Italy, Libya, Malaysia, Singapore, Spain and UK subject to approval from Regulatory Authorities of the respective Countries. Permission from UK has already been received and the rest are underway. ? SME Service Centre In order to facilitate the investors of Small and Medium Enterprise, Premier bank has opened several SME Service Centres at different locations – Banani SME Centre – Plot No. 6/A (1st Floor), Road No. 11, Banani, Dhaka. Bangla Bazar SME Centre – 42, Bangla Bazar, Ward No. 73, Sutrapur, Shadarghat, Dhaka. Kawran Bazar SME Centre – Progoti RPR Centre, 20-21, Kawran Bazar, Dhaka. Tel; 8189404. Mohammadpur SME Centre – 1/4, Block E, Shat Masjit Road, Mohammadpur Bus Stand, Ward No. 46, Dhaka. Tel: 9101929. Malibagh SME Centre – 98, Shiddeswari Circular Road, 1st Floor, Mouchak More, Malibagh, Dhaka. ? Evening Banking Service A unique service of The Premier Bank Limited for receiving cash and documents beyond transaction hours till 8 o’ clock in the evening.

This service is attractive for those like shopkeepers who accumulate cash as sales proceeds in the afternoon when counters of Bank Branches usually remain closed. The service is available at selective branches of our Bank. ? Premier Debit Card & ATM Service They are offering Premier VISA Debit Card Service as well as own Automated Teller Machine (ATM) facility to electronically debit money from your account. In addition to their own ATM Booth, you can also use Premier VISA Debit Card in other Bank ATM where VISA Card is accepted. ? SMS Banking Service Check your Bank Account Balance, while you are stuck in traffic.

Stop Cheque Payment from the airport. Request for your Account Statement while watching TV. Check Last Three Transactions of your account at the restaurant. All these and more are possible through our SMS Banking Service. ? Card Messaging Service You can check your Credit Card balance and get other credit card related services through their Card Messaging Service (CMS). ? Locker Service For safekeeping of your valuables such as important documents and goods like jewelries and gold ornaments, their Locker Service is available in most of the Branches in urban areas. Call Center They have setup their own “Call Center” at Head Office under the direct supervision of the Managing Director. If you have any queries, suggestion or complain, you can talk to their Call Canter during business hour. You will also find complain/suggestion box at their every branches for your valuable input. Their Call Center is open from Sunday to Thursday to accept your call in working hours from 10:00 a. m. to 6:00 p. m. except on Saturday from 10:00 p. m. to 3:00 p. m. Dialing numbers are: 02-9887581-4 Ext- 115, 216, 237.

They also offer other services like – Utility Bill Payment Service for DESCO, DPDC, REB, BTCL, TITAS, Corporate Web Site Service and Treasury Service. Chapter Four General Banking Activities of Premier Bank 4. 1 Introduction General banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’.

Financial institution intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking deposits from SURPLUS UNIT i. e. from various areas in different forms and lending that accumulated amount of money to the DEFICIT UNIT i. e. to potential investors in other different forms. General banking department aids in taking deposits and simultaneously provides some ancillaries services. General banking is the starting point of all the banking operations.

General banking is the front-side banking service department. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service from bank. Everyday it receives deposits from the customers and meet s their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’.

On the other hand, there are some customers with who bank are doing its business frequently. 4. 2 Function Of This Department 1. Account opening section 2. Local Remittance section 3. Bills and clearing section 4. Deposit section 5. Cash section 6. Issuance of financial instruments. 4. 3 Product & Services >> Deposits ? Savings Account (Effective from 16. 05. 09) ? Current Account ? Special Notice Deposit Account (SND) ? Premier 50+ Account ? Genius Account ? Foreign Currency (FC) Account ? Fixed Deposit ? Monthly Income Scheme ? Monthly Savings Scheme Double Benefit Scheme ? Dui Bochore Digoon ? Education Savings Scheme ? Special Deposit Scheme 4. 4 Description of different products of Premier Bank Ltd. ? Savings Account (SB) They offer competitive interest rate (5. 00% P. a) on our Savings Account. In addition, all account holders will get VISA Debit Card and ATM facility for 24 hour banking convenience. |Savings Account (SB A/C) | |Interest Rate |Special Clouse | |5. 00% P. a |On daily closing balance but minimum balance of TK. 10000. 0 to be maintained for receiving interest on any day | ? Current Account (CD) Their Current Account is probably the most useful Bank Account you will ever have for daily transaction. It is a non-interest bearing cheque account. It will save you the hassle of carrying around cash every month. ? Special Notice Deposit Account (SND) Any individuals or corporate bodies can open Special Notice deposit Account for short time period. However, 7 days notice is required to withdraw money from this account with attractive interest which is as follows: |Less than TK. 1 Crore |TK. Crore & Above but Less |TK. 25 Crore & Above but Less than |TK. 50 Crore & Above but Less than |TK. 100 | | |than TK. 25 Crore |TK. 50 Crore |TK. 100 Crore |Crore & | | | | | |Above | |4. 00% P. a |4. 25% P. a |4. 50% P. a |4. 75% P. a |5. 00% P. a | ? Premier 50+ Account

If you are above fifty years of age, you will appreciate our unique Premier 50+ Account with a number of extra benefits such as higher rate of interest (5. 75% P. a) on daily closing balance, priority service and no service charge. The Account is exclusively developed for the senior citizens of the country. |Premier 50+ A/C | |Interest Rate |Special Clouse | |5. 5% P. a |On daily closing balance but minimum balance of TK. 5000. 00 to be maintained for receiving interest on any day | ? Premier Genius Account Intellect and perseverance will lead you to success and saving will guide you to an enriched future. Premier Bank Genius Account offers students, who are18 years and above, easy and modern banking facilities. Wherever your possibility may lie, be it in the country or abroad, Premier Bank will always be beside you as you build your future.

Genius Account offers you highest profit on daily closing balance (5. 75% P. a), Discount on VISA Debit Card and other attractive facilities. |Premier Genius A/C | |Interest Rate |Special Clouse | |5. 5% P. a |On daily closing balance but minimum balance of TK. 2000. 00 to be maintained for receiving interest on any day | ? Foreign Currency (FC) Account Foreign Currency Account can be opened at any of our authorized dealer (AD) Branches. We offer number of foreign currency accounts such as Resident Foreign Currency Deposit (RFCD) and Non Resident Foreign Currency Deposit (NFCD) Accounts.

Other account includes Convertible Taka Account which is an account in Taka and the account holder has the option to convert Taka into foreign currency and vice versa. ? Fixed Deposit (FDR) Their Fixed Deposit (FDR) is meant for those investors who want to deposit a lump sum of money for a fixed time period; say for a minimum period of 30 days to 1 year and above, thereby earning a higher rate of interest in return. The prevailing rates of interest are shown below: |Amount |1=>

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