Training and Development Practices of IFIC (International Finance
Investment and Commerce) Bank Limited
Introduction
Bank is a financial organization. There is a great supportive role of
banking system in human society. It plays a vital role for the economic
development of a country. The Banking system in Bangladesh is backward,
compared with many other nations. There are some private commercial,
multinational and joint venture Banks, which have established state of the
art services for their clients. IFIC Bank Limited is one of them.
For the economic development, a discipline, modern and dynamic Banking
system is a must. With the period of time many commercial Banks have
entered the financial system to perform narrow to broad-based financial
activities as required by the system. Apart from the decentralization of
the nationalized Banks, the pace of economic liberalization and development
was accelerated by the introduction of new private commercial Banks and
permitting foreign commercial Banks to operate on our country. It paved the
way for fair competition. Among the intellectual arena, there is no debate
on the decisive role of commercial Banks in economic development mainly
through channeling inevitable surpluses into proper investment projects.
This report is basically a study of training and development practice of
IFIC Bank limited.
Background of the study
Modern banking system plays a vital role for a nation's economic
development. Over the last few years the banking world has been undergoing
a lot of changes due to deregulation, technological innovations,
globalization etc. These changes also made revolutionary changes of a
country's economy. Present world is changing rapidly to face the challenge
of competitive free market economy. It is well recognized that there is an
urgent need for better-qualified management and better-trained staff in the
dynamic global financial market. Bangladesh is no exceptions of this trend.
Banking Sector in Bangladesh is facing challenges from different angles
though its prospect is bright in the future.
International Finance Investment and Commerce Bank Limited (IFIC Bank) is
banking company incorporated in the People's Republic of Bangladesh with
limited liability. It was set up at the instance of the Government in 1976
as a joint venture between the Government of Bangladesh and sponsors in the
private sector with the objective of working as a finance company within
the country and setting up joint venture banks/financial institutions
aboard.
IFIC Bank one of the leading private bank in Bangladesh. The IFIC Bank has
120 branches across the country.
It has four joint ventures in abroad.
1. Oman International Exchange LLC, Oman.
2. NIB Bank Ltd. Pakistan.
3. Bank of Maldives, Maldives.
4. Nepal Bangladesh Finance & Leasing Ltd.
Rationality of the study
There are various reasons this assignment as well as study for it. Reasons
are as follows:
1. The main goal of this study to know the training and development
facilities of IFIC Bank LTD.
2. By completing of this study we will be well informed also about IFIC
Bank, customer satisfaction of IFIC and also many related matters with
it.
3. Another reason of this assignment is to get some practical knowledge
and compare bookish knowledge with practical one.
Objective of the study
Broad Objective
To analyze the customer relationship and competitive scenario of IFIC Bank
Limited.
Specific Objectives:
To analyze Marketing Mix of IFIC
To analyze growth and milestone of IFIC
To provide my personal opinion regarding with IFIC training and
development practice.
Scope and Limitations of the study
There are 1200 Branches of International Finance Investment and Commerce
Bank Limited (IFIC Bank), and I had worked in Chawkbazar branch. Here I
worked in as sales executive.
While I was doing my internship as well as my assignment I had to face many
problems which can be called as limitations. And limitations are as
follows:
Time was one the big limitation of my assignment
Biasness may come from the respondent's study report.
Financial limitation was a very limitation of my assignment/study.
Literature Review
A bank is a financial intermediary that creates credit by lending money to
a borrower, thereby creating a corresponding deposit on the bank's balance
sheet. Lending activities can be performed either directly or indirectly
through capital markets. Due to their importance in the financial system
and influence on national economies, banks are highly regulated in most
countries. Most nations have institutionalized a system known as fractional
reserve banking under which banks hold liquid assets equal to only a
portion of their current liabilities. In addition to other regulations
intended to ensure liquidity, banks are generally subject to minimum
capital requirements based on an international set of capital standards,
known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities
of Renaissance Italy but in many ways was a continuation of ideas and
concepts of credit and lending that had their roots in the ancient world.
International Finance Investment and Commerce Bank Limited (IFIC Bank) is
banking company incorporated in the People's Republic of Bangladesh with
limited liability. It was set up at the instance of the Government in 1976
as a joint venture between the Government of Bangladesh and sponsors in the
private sector with the objective of working as a finance company within
the country and setting up joint venture banks/financial institutions
aboard. In 1983 when the Government allowed banks in the private sector,
IFIC was converted into a full-fledged commercial bank. The Government of
the People's Republic of Bangladesh now holds 32.75% of the share capital
of the Bank. Directors and Sponsors having vast experience in the field of
trade and commerce own 8.62% of the share capital and the rest is held by
the general public.
The Bank started with an Authorized capital of Tk. 100 million in 1983.
Paid up capital at that time stood at Tk. 71.50 million only. Over the last
19 years, the authorized and paid-up capital has increased substantially.
The paid capital stood at Tk. 1.341 million. The Bank has built up a strong
reserve base over the years. In last 19 years its Reserves and surplus have
increased overly. As against Tk. 21.20 million only in 1983 Reserve and
surplus increased to Tk. 733.30 million in 2013. This consistent policy of
building up Reserves has enabled the Bank to maintain a better adequacy
ratio as compared to others. Recently the bank is able to change its short
term financing from "B" to "A". With the active support and guidance from
the Government, the bank has been showing a steady and improved
performance. In its last fifteen years operation, the bank has earned the
status of leading in terms of both business and goodwill. Starting modest
deposit of only Tk. 863.40 million in 1983 the Bank has closed its business
with Tk. 36.092.17 million of deposit.
The Bank covers by its activities all the important trading and commercial
centers of the country. In 1983, IFIC Bank set up a joint venture bank
names Bank of Maldives Limited (BML). It is the first bank of Maldives. In
1992, as per contract, IFIC Bank handed over the management of BML to
Maldives. To facilitate remittance by Bangladeshi in Omen, IFIC bank set up
a money exchange company as a joint venture, named Oman-Bangladesh
Exchange. IFIC Bank opened its first overseas branch in Karachi, Pakistan.
It opened its second branch at Lahore in Pakistan. In December 1993, the
Bank got permission to establish a joint venture bank with 50% equity
capital in Nepal. The bank known as, Nepal Bangladesh Ltd. came into
operation in June 1994.
Bank's Mission
Its Mission is to provide service to our clients with the help of a skilled
and dedicated workforce whose creative talents, innovative actions and
competitive edge make our position unique in giving quality service to all
institutions and individuals that we care for.
They are committed to the welfare and economic prosperity of the people and
the community, for we derive from them our inspiration and drive for onward
progress to prosperity.
They want to be the leader among banks in Bangladesh and make our indelible
mark as an active partner in regional banking operating beyond the national
boundary.
In an intensely competitive and complex financial and business environment,
they particularly focus on growth and profitability of all concerned.
Milestones in the development of IFIC BANK:
1980 - Commenced operation in Foreign Exchange Business in a limited scale.
1982 - Obtained permission from the Govt. to operate as a commercial bank.
- Set up its first overseas joint venture (Bank of Maldives Limited) in the
Republic of Maldives (IFIC's share in Bank of Maldives Limited was
subsequently sold to Maldives Govt. in 1992)
1983 - Commenced operation as a full-fledged commercial bank in Bangladesh.
1985 - Set up a joint venture Exchange Company in the Sultanate of Oman,
titled Oman Bangladesh Exchange Company (subsequently renamed as Oman
International Exchange, LLC).
1987 - Set up its first overseas branch in Pakistan at Karachi.
1993 - Set up its second overseas branch in Pakistan at Lahore.
1994 - Set up its first joint venture in Nepal for banking operation,
titled Nepal Bangladesh Bank Ltd.
1999 - Set up its second joint venture in nepal for lease financing, titled
nepal Bangladesh Finance & leasing Co. Ltd. (which was merged with NBBL in
2007)
2003 - Overseas Branches in Pakistan amalgamated with NDLC, to establish a
joint venture bank: NDLC-IFIC Bank Ltd., subsequently renamed as NIB Bank
Ltd.
2005 - Acquired MISYS solution for real time on-line banking application.
- Core Risk Management implemented.
2006 - Corporate Branding introduced.
- Visa Principal and Plus (Issuer and Require) Program Participant
Membership obtained.
2008 - Observing 25th Anniversary of Customer Satisfaction.
2009 - 64 Branches offering Real Time On-line banking facility.
2010 - All 96 Branches & SME Service Centers of IFIC Bank is operating
under state-of-art world class Real Time On-line Banking Solution.
Product &service offerings:
CORPORATE BANKING- Corporate banking is providing a wide range of financial
services, offering specialist advice and products to corporate clients to
meet diverse demands of changing market scenario. Products and services for
commercial and business customers include: Working Capital Finance Project
Finance Term Finance Trade Finance Lease Finance Syndication Loan etc.
RETAIL BANKING -Retail Banking is mass- banking facility for individual
customers to avail banking services directly from our wide branch net work
all over the country. IFIC Bank offers a wide variety of deposit products,
loan product & value added services to suit your banking requirements.
Products and services for individual customer include: Consumer Finance
Deposit Product Card NRB Account Student File SMS Banking etc.
SME BANKING- It is for the small and medium enterprises who don't have
enough money to operate their business. To facilitate SME sector of the
country, IFIC Bank provides collateral free credit facilities to the small
& medium entrepreneurs across the country whose access to traditional
credit facilities are very limited. We are offering 15 different products
for selected target groups, such as- Easy Commercial Loan Retailers Loan
Transport Loan
Commercial House Building Loan Possession Right Loan Contractor's Loan
Bidder's Loan Working Capital Loan Project Loan Letter of Guarantee Letter
of Credit Loan against Imported Merchandize (LIM) Loan against Trust
Receipt Muldhan Women Entrepreneur's Loan (Protyasha)
TREASURY & CAPITAL MARKET: The Treasury Division of IFIC Bank is engaged
with Cash Management, Liquidity Planning and Liquidity Protection. It is
also conscious to protect all the bank's Assets and Profits against loss
due to domestic as well as global financial realities, particularly
Interest and Exchange Rate fluctuations. The Treasury Department is also
regarded as a Profit Center, which generates income by trading instruments
in the Financial Market. The Treasury is constituted with well setup Front
Office, Mid Office and Back Office.
Treasury Products
IFIC Bank Treasury deals with the following Money Market, Capital Market
and Fx Market Instruments for managing fund, statutory requirement,
liquidity and investment.
Money Market
Overnight Call
Term Placement
Repurchase Agreement
Reverse Repo Government Securities
Treasury Bill
Treasury Bond
Capital Market
Share
Bond Foreign Exchange
Spot
Forward
Swap
Term Placement
AGRICULTURE CREDIT:
In order to achieve desired growth in agriculture sector of the country,
IFIC bank is committed to increase their present loan portfolio in
agricultural sector. IFIC Bank is offering Agriculture Loan products namely
i) Krishi Saronjam Rin - for Agriculture Equipment's ii) Shech Saronjam Rin
- for irrigation equipment's iii) Poshupokkhi& Motsho Khamar Rin - for Live
Stock & Fish Culture & iv) Phalphasali Rin - for Fruit Orchard for
individuals & group at micro level.
IFIC want to be the leader among banks in Bangladesh and make our indelible
mark as an active partner in regional banking operating beyond the national
boundary.
Customer Satisfaction:
From customer feedback of IFIC bank ltd.
It has seen that 22% customers are highly accepted, 33% customers have
preferred modern banking, 25% customers have looked on facility and 20%
customers have preferred quick banking.
13% rough, 44% very friendly, 20% 23% customer have preferred friendly.
Here, 12% customer preferred other account, 56% customer saving account,
15% current account and 17% customer preferred access account.
30% very fast, 13% within their experience, 10% within expected time and
47% customer have looked on takes more times.
17% customer have looked on very friendly, 20% looked on dedicated, 50%
normal and 13% customer preferred rude behave of the tellers with the
customer.
17% of excellent, 13% of good service, 50% customer preferred not so first
and 20% have looked on out of service problem.
17% of very friendly personnel, 13% of not so friendly, 20% very friendly
and knowledge personnel and 50% customer say they are not so outspoken.
18% of normal, 13% of affordable, 15% very high and 54% says high about
their charges.
About their credit facilities I have found 40% difficult to get a credit,
17% quick credit service, 20% lengthy and 23%
23% customers have looked on very fast, 13% have looked on very slow, 17%
slow and 47% have looked on their quick on line service.
20% customer preferred on easy to convert into cash, 17% excellent service,
13% low cost and 50% supported easier to transaction.
Here 20% customer have said none of the above, 17% said fast, 15% very fast
and 48% said they are very slow.
About their loan interest rate 17% very high, 18% low, 12% very low and 53%
high.
About their fixed deposit rate 30% very high, 20% low and 50% high.
About their switching cost 22% customer preferred on very high, 27%
preferred on low and 51% customer preferred their switching cost is high.
47% customer preferred on SOD, 20% OD, 18% CC hypothecation and 15% CC
pledge.
About their credit card charges 30% customer have looked on it is low, 20%
high and 50% customer have looked on their credit card charges is medium.
46% customer said it take twenty minutes, 22% fifteen minutes, 20% ten
minutes and 12% said it takes less than ten minutes.
40% customers disagree, 20% strongly agree, 23% agree and 17% strongly
disagree about the tellers efficient in work.
20% customer said seating problem, 15% less cash counter, 17% big queues
and 48% said less space.
