management comparision of private and public bank
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7/23/2019 Management Comparision of Private and Public Bank
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1.0INTRODUCTION
1.1 Background of BankingThe Jews in Jerusalem introduced a kind of banking in the form of money lending before the
birth of Christ. The word ‘Bank’ was probably derived from the word ‘bench’ as during ancient
time Jews used to do money lending business sitting on long benches.!irst modern banking was introduced in 1""# in $tockholm as ‘$avings %is Bank’ which opened
up a new era of banking activities throughout the &uropean 'ainland.
(n the $outh )sian region* early banking system was introduced by the )fghan traders popularlyknown as +abuliwallas. 'uslim businessmen from +abul* )fghanistan came to (ndia and started
money lending business in e,change of interest sometime in 1-1 )./. They were known as
‘+abuliwallas.
Banks have influenced economies and politics for centuries. 0istorically* the primary purpose of
a bank was to provide loans to trading companies. Banks provided funds to allow businesses to
purchase inventory* and collected those funds back with interest when the goods were sold. !or
centuries* the banking industry only dealt with businesses* not consumers. Banking services havee,panded to include services directed at individuals* and risks in these much smaller transactions
are pooled.
The name bank derives from the (talian word banco desk2bench3* used during the 4enaissance
by !lorentines bankers* who used to make their transactions above a desk covered by a green
tablecloth.56 0owever* there are traces of banking activity even in ancient times.(n fact* the word
traces its origins back to the )ncient 4oman &mpire* where moneylenders would set up their
stalls in the middle of enclosed courtyards called macella on a long bench called a bancu* from
which the words banco and bank are derived. )s a moneychanger* the merchant at the bancu did
not so much invest money as merely convert the foreign currency into the only legal tender in
4ome7that of the (mperial 'int.
1. 8b9ective of the $tudy
To know the management practices of banking sector in Bangladesh
1.- $cope of the $tudy
The study would focus on the following areas of Bank :imited.
Credit risk management process.
0uman resources management process
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%ortfolio ;loans < advances= management of Bank
%referred 8rgani>ation structures and responsibilities of Credit 4isk management.
The analyses of some factors related to the credit risk.
&ach of the above areas would be critically analy>ed in order to determine the efficiency of%B:’s Credit appraisal and 'anagement system.
1.? :imitation of the $tudy
%ast and present information that are confidential could not be accurately obtained. )like allother institutions* Bank is also very conservative and strict in providing managerial information.
(n such cases* we have relied upon certain assumptions* which are only amateur estimates. )s
many of the analysis on the obtained data are based on our sole interpretation* there may be some biases* as lack of knowledge and depth of understanding might have hindered our ability to
produce an absolutely authentic and meaningful report.
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2.0Literature Review
.1 /efinitionbank is a financial intermediary and money creator that creates money by lending money
to a borrower,thereby creating a corresponding deposit on the bank's balance sheet.
Lending activities can be performed directly by loaning or indirectly through capital
markets .
) bank is a financial institution whose primary activity is to act as a payment agent for
customers and to borrow and lend money. (t is an institution for receiving* keeping* and lending
money@@@. )ccording to ' A $hukla
) bank is an institution the principle function of which is to collect the unutili>ed money
of the people and to lend it to others@@@.$aid %rof. Chambers.
. :aw of Banking
Banking law is based on a contractual analysis of the relationship between the bank and the
customer. The definition of bank is given above* and the definition of customer is any person for
whom the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as follows
The bank account balance is the financial position between the bank and the customer*when the account is in credit* the bank owes the balance to the customer* when theaccount is overdrawn* the customer owes the balance to the bank.
The bank engages to pay the customer’s cheDues up to the amount standing to the creditof the customer’s account* plus any agreed overdraft limit.
The bank may not pay from the customer’s account without a mandate from the
customer* e.g. a cheDue drawn by the customer.
The bank engages to promptly collect the cheDues deposited to the customer’s account as
the customer’s agent* and to credit the proceeds to the customer’s account.
right to combine the customer’s accounts* since each account is 9ust an aspect of the same
credit relationship.
The bank has a lien on cheDues deposited to the customer’s account* to the e,tent that thecustomer is indebted to the bank.
The bank must not disclose the details of the transactions going through the customer’s
account unless the customer consents* there is a public duty to disclose* the bank’sinterests reDuire it* or under compulsion of law.
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.- 0istorical Background of Banking in Bangladesh
)fter independence of Bangladesh the government of Bangladesh was formally to change the
administration of the territory now constitute Bangladesh. The government promulgated a lawcalled Bangladesh bank order 1EF1 ;acting president order no of 1EF1=. By this order the state
bank of %akistan was declared to be deemed as Bangladesh bank and officers* branches andassets of said state bank was declared to be deemed as officers* branches of Bangladesh bank. 8nthe date there e,isted 1? scheduled banks with about -G? branches all over the world.
8n the 1"th /ecember 1EF1 there e,isted the following 1 banks in Bangladesh namely
&,isting Bank Aew Bank
1. Aational bank.
. Bank of Bahawalpur :td
-. %remir Bank :td.
$onali Bank
?. 0abib Bank :td
H. Commerce Bank :td
)grani Bank
". Inited Bank :td.
F. Inion Bank :td.
Janata Bank
#. 'uslim Commercial Bank :td.
E. $tandard Bank :td.
1G. )ustralasia Bank :td
4upali Bank
11. &astern 'ercantile Bank :td. %ubali Bank
1. &astern Banking Corporation :td. Ittara Bank
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3.0Methodology
(n the term paper* much information has been collected from the secondary sources such as from
annual report* different published articles* 9ournals* brochures* web sites etc. )ll the data
collected for reporting purpose are systematically.
)nnual report of different banking industry.
%eriodicals %ublished by Bangladesh Bank.
/ifferent publications regarding Banking functions.
(nternet was also used as a theoretical source of information.
ebsites and Aewsletters are also used as ma9or sources.
-.1 /ata )nalysis TechniDues
This report is an analytical one. /ifferent statistical tools are used in analysis and presentation of data throughout the report. The overall analysis techniDues are
• To find out the relationship among different variables with A%:* K/%* C%( (nflation and
&,change 4ate 'ultiple 4egression )nalysis
• 4atio calculation to analy>e Credit risk scenario.
• !ind significant relationship with the %robability of Book Lalue (nsolvency with 4isk
(nde, and C)% through 'ultiple 4egression )nalysis.
• 'icrosoft &,cel is used in calculating and constructing of graphs
• $%$$ $tatistical software is used to analy>e correlation and multiple regression analysis.
• Tables and :ine Kraphs are used in presenting data.
This overall process of the study is as follows
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4.0Data !aly"i" # $i!di!g"
?.1 Banking (ndustry of Bangladesh
The Banking (ndustry in Bangladesh is one characteri>ed 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. )s a result* the market will only accommodateonly those banks that can transpire as the most competitive and profitable ones in the future.
Currently* the ma9or financial institutions under the banking system includes
Bangladesh Bank
Commercial Banks
(slamic Banks
:easing Companies
!inance Companies
Banks operating in Bangladesh are as followings
State-owned commercial banks
$tateowned are functioning as nationalist. 0ere is the list $onali Bank
Janata Bank
)grani Bank
4upali Bank
Private commercial banks
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%rivate banks are the highest growth sector due to the dismal performances of government banks
;above=. They tend to offer better service and products. 0ere is the list
o )B Bank :imited
o Bangladesh Commerce Bank :imited
o Bank )sia :imited
o B4)C Bank :imited
o /haka Bank :imited
o /utch Bangla Bank :imited
o &astern Bank :imited
o !armers Bank :imited
o (!(C Bank :imited
o Jamuna Bank :imited
o 'eghna Bank :imited
o 'ercantile Bank :imited
o 'idland Bank :imited
o 'odhumoti Bank :imited
o 'utual Trust Bank :imited
o Aational Bank :imited
o ACC Bank :imited
o A4B Commercial Bank :imited
o A4B Klobal Bank :td
o 8ne Bank :imited
o %rime Bank :imited
o %ubali Bank :imited
o $outh Bangla )griculture and Commerce Bank :td
o $outheast Bank :imited
o $tandard Bank :imited
o
The City Bank :imitedo The %remier Bank :imited
o Trust Bank :imited
o Inited Commercial Bank :td
o Ittara Bank :imited
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There are # (slamic Commercial Banks
)l)rafah (slami Bank :imited
5&,im Bank ;Bangladesh=M&,port (mport Bank of Bangladesh :imited6
5!irst $ecurity (slami Bank :imited6
(CB (slamic Bank
(slami Bank Bangladesh :imited
$hah9alal islami bank :imited
$ocial (slami Bank :imited
Inion Bank :imited
Foreign commercial banks1G foreign commercial banks are operating in Bangladesh. These are
o Bank )lfalah
o Citibank A)
o Commercial Bank of Ceylon
o 0abib Bank :imited
o 0$BC ; The 0ong +ong and $hanghai Banking Corporation :td. =
o Aational Bank of %akistan
o $tandard Chartered Bank
o $tate Bank of (ndiao oori Bank
o (C(C( Bank
Specialied banks$peciali>ed Banks ;$/Bs= ? speciali>ed banks are now operating which were established for specific ob9ectives like agricultural or industrial development. These banks are also fully or
ma9orly owned by the Kovernment of Bangladesh.
Bangladesh +rishi Bank
4a9shahi +rishi Innayan Bank
Bangladesh /evelopment Bank :td
B)$(C Bank :imited
%robashi +allyan Bank
The /haka 'ercantile cooperative Bank :td
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!igure Types of Bank
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?. 'anagement %ractices in Banking (ndustry
The Board of /irectors is the top management and policymaking body of banking industry both
private and public sector. The Board consists of a chairman and a number of directors. (t is to benoted that the 'anaging /irector* is also a member of the Board. The /irectors are appointed
from amongst those who have had e,perience and shown capacity in the field of finance and banking* trade* commerce* industry agriculture. The Chief 8perations 8fficer e,ecutes all theactivities under the direction of the Board. Banks own 4ecruitment Committee appoints the
officers and the other line and staff personnel.
!igure 8rgani>ational $tructure
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$i%erent managerial department o& 'anking (nd)str*:-
'ost bank operate their activity in Bangladesh both private and public sector has the following
department@.
04'
Corporate Banking $'& /ivision
Credit /ivision
Consumer $ervice /elivery
4isk 'anagement
:iability 'anagement
(T ;(nformation and Technology=
Treasury 'anagement
4emittance and !inancial )dministration
(mpaired )ssets 'anagement /ivision
?.- 0uman 4esource 'anagement
0uman resource is a term used to describe the individuals who comprise the workforce of anorgani>ation* although it is also applied in labor economics to* for e,ample* business sectors or
even whole nations. 0uman resources is also the name of the function within an organi>ation
charged with the overall responsibility for implementing strategies and policies relating to themanagement of individuals ;i.e. the human resources=. This function title is often abbreviated to
the initials ‘04’.
+)man reso)rces p)rpose and role,
(n simple terms* an organi>ation’s human resource management strategy should ma,imi>e returnon investment in the organi>ation’s
human capital and minimi>e financial risk. 0uman 4esources seeks to achieve this by aligning
the supply of skilled and Dualified individuals and the capabilities of the current workforce* withthe organi>ation’s ongoing and future business plans and reDuirements to ma,imi>e return on
investment and secure future survival and success. (n ensuring such ob9ectives are achieved* the
human resource function purpose in this conte,t is to implement the organi>ation’s humanresource reDuirements effectively but also pragmatically* taking account of legal* ethical and as
far as is practical in a manner that retains the support and respect of the workforce.
e* &)nctions,
0uman 4esources may set strategies and develop policies* standards* systems* and processes that
implement these strategies in a whole range of areas. The following are typical of a wide range
of organi>ations
4ecruitment* selection* and on boarding ;researching=
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8rgani>ational design and development
Business transformation and change management
%erformance* conduct and behavior management
(ndustrial and employee relations
0uman resources ;workforce= analysis and workforce personnel data management
Compensation* rewards* and benefits management
Training and development ;learning management=
(mplementation of such policies* processes or standards may be directly managed by the
04 function itself* or the function may indirectly
$upervise the implementation of such activities by managers* other business functions or
via thirdparty e,ternal partner organi>ations.
.et/od o& 0raining and $evelopment,
There are some training and development methods which is given as under
ompensation .anagement,
Compensation 'anagement is an integral part of the management of he organi>ation.
Compensation is a systematic approach to providing monetary value to employees in
e,change for work performed. (t may achieve several purposes assisting in recruitment* 9ob
performance* and 9ob satisfaction. (t is the remuneration received by an employee in returnfor his2her contribution to the organi>ation. (t is an organi>ed practice that involves balancing
the workemployee relation by providing monetary and nonmonetary benefits to employees.
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omponents o& compensation,
Basic wages2$alaries
/earness allowance
(ncentives
Bonus
on-monetar* benets,-
Commissions
'i,ed plans
%iece rate wages
!ringe benefits
%rofit $haring
?.? Corporate Banking
The Corporate Banking /ivision provides full range of commercial banking products andservices. 'any /epartments such as !oreign Trade* Treasury* and Credit )dministration etc. play
the support role for a comprehensive range of service to the corporate Banking /ivision.
Bank’s Corporate Banking team e,ists to provide both banking services and a financial partnership with local large and medium corporate* trading houses and 9oint ventures. )s the
financial partner of choice for the corporate sector
Corporate Banking Structure:
The Corporate Banking /ivision has a centrali>ed structure through online banking system. )nycredit facility is processed at the Corporate Banking /ivision* 0ead 8ffice. )fter sanctioning of
the facility* the limit is put online and the C8A$I'&4 can en9oy the facility from any of the
branches. $trict adherence to internal control guidelines and other legal and statutory complianceare followed. The Credit approval process involves separate Credit /ivision* the 'anaging
/irector and finally the Board.
bectives,
The Corporate Banking Kroup would try to serve the financial market of the country with thefollowing ob9ectives.
1. To develop and sustain mutually beneficial C8A$I'&4 relationships based on high Duality
service and innovative products.. 'aintaining a diverse and Duality asset base and pursue a sustainable growth strategy.
-. To pursue a management style that contributes to the wellbeing and development of a fully
responsible and accountable workforce under a high corporate standard and business ethics.?. To provide and deliver services in a costeffective manner.
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?.H $'& /ivision
This department works widely over the country. There are more various unit offices of $'&
division all over the country sell different type of loan to different small and medium enterprise.They provide loan* which are to be paid in installment. This department also monitors the
recovery of the loan and in case of inconsistency they take necessary action to recovery the loan.
?." Credit 'anagement
) Contractual agreement in which borrower receives something of value now agrees to repay the
lender at some later date* :oanan arrangement in which a lender give or property to a borrower*and the borrower agrees to ruler the property or repay the money* usually along with interest* at
some future point;s= in time. )s !inancial intermediaries* :ending is one of the main functions of
a Bank.
F)nctions,-
'anaging credit e,posure
'anaging credit risk
Compliance with the issue of Bangladesh Bank regulations
$upport all businesses of the Bank Collection of 8verdue loans
4ecovery of Bad debts.
'asic lements &or )dging a 'orrower, H C’s of Credit
Character
Capacity
Capital
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Conditions
Collateral
So)rce o& 'orrower St)d*,
:oan application
!inancial statement $tudy of )ccount
'arket reputation
Bangladesh Bank
/ifferent Banks
%ersonal (nterview. %ersonal Lisit
?.F Consumer $ervice /elivery
(t is the processing Center for B4)C Bank. )ll the back office activities take place in this
department. (t performs the following activities
&nsure cheDue reDuisition reDuests are attended.
&nsure cheDue Books are printed and checked as specified in the reDuisition reDuest.
'ailing of cheDue books to the respective branch
&nsure cheDue leaves stock register are properly maintained
&nsure ) T' Card reDuisition reDuests are attended
&nsure )T' Cards are checked as specified and delivered to the respective locations.
&nsure Blank )T' Cards are balanced as per inventory register.
&nsure CheDue Books* )T' Cards are delivered to the respective branches at thespecified timeline.
'ailing welcome letter
'ailing !/4 renewal
/ormant account activation
4eactivation of /ormant2Closed )ccount
?.# 4isk 'anagement
4isk 'anagement ;4'= is an important dimension for banking industry. 4' will set risk
management strategy across the enterprise* designed to identify potential events that may affectthe organi>ation and manage risk to be within its risk appetite to provide reasonable assurance
regarding the achievement of organi>ational ob9ectives.
The management committee approved the 4'C policy* which contains the guidelines for
reporting about 4isk 'anagement to the committee. The committee discusses about the variousissues raised relating to the financial activities of the organi>ation. The units Dualify the specific
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risk according to the matri, provided by Bangladesh Bank. The meeting minutes are reviewed by
the Board )udit Committee on Duarterly basis.
?.E :iability 'anagement
(n the case of banking activities* the bankers must have to make the decision about the buying
and selling the market securities for making the particular loans or to cover the their demanded
fund for the investment and lending activities. The overall process for making the decision aboutthe composition of bank’s assets and liabilities with the assessment of the risk is known as
asset2liability management or ;):'=. The three important criteria are viewed as to manage the
sources and uses of funds on the balance sheet and offbalance sheet activities with respect to
interest rate risk and liDuidity. These are as follows
The direction of changes in interest rates in the future.
The composition of their assets and liabilities and
The degree of risk that they are waffling to takeCollectively* these decisions affect the bank’s net interest income and the balance sheet values.The process of making such decisions about the composition of their assets and liabilities and the
risk assessment is generally known as asset2liability management or ):'. The traditional
purpose of ):' is to control the si>e of the bank’s net interest income. The different featuresthat are related to ):' are discussed bellow.
et (nterest (ncome 8((9,
The net interest income is calculated by the difference between the interest earned on the assets
and the cost of the liabilities. 0ere* we can describe the Ail with an e,ample bellow
Aet (nterest (ncome ;Ail= N (nterest income 7 (nterest e,pense
et (nterest .argin 8(.9,
The net interest margin ;A('= is net interest income ;A(O= divided by the total earnings assetsthat are shown below
Aet (nterest 'argin ;A('= N Ail 2 &arnings )ssets
;$ource Commercial Banking* Kup < +olari=
?.1G (T ;(nformation < Communication=
!or all types Bank* technology is the silent strength behind its wide array of products and its ?2Fservice delivery capabilities. Aow a days bank embraced a number of bestinclass technology platforms that will ensure seamless behind the scenes support for its rapid growth.
)ll Bank follows the guideline dated in B4%/ Circular no. 1?* dated - 8ctober GGH regarding
Kuideline on (nformation and Communication Technology for $cheduled Banks3. (T operationmanagement covers the dynamics of technology operation management including change
management* asset management and operating environment procedures management. The
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ob9ectives are to achieve the highest levels of technology service Duality by minimum
operational risk.
(n order to ensure that information assets are protected against risk* there are controls over
%assword
Iser (d maintenance
(nput Aetwork $ecurity
/ata &ncryption
Lirus %rotection
?.11 Treasury 'anagement
Treasury department is vested with the responsibility to measure and minimi>e the risk
associated with bank’s liDuidity* foreign e,change e,posure and asset liability management.
Treasury continuously monitors price movements of foreign e,change and uses various hedgingtechniDues to manage its open position in such a way that minimi>es risk and ma,imi>es return.
The )sset :iability 'anagement ;):'= desk provides country economic analysis* balance sheet
gaps* ):' ratios and many other findings before the ):C8.The !inancial (nstitutions ;!(= wings works as the trigger point of establishing new relationship
with correspondent banks as well as to maintain the e,isting relationship to provide a smooth
funding channel for all business units.
?.1 4emittance 'anagement 4emittance means transfer of money from one to another. Bank provides this facility to their
customer as a part of essential services provided to them. The transfer of money can take place
either within the country or from one country to another.
The remittance of freely convertible foreign currencies which we are receiving from abroad
against which the )uthori>ed /ealers making payment in local currency to the beneficiaries may
be termed as !oreign (nward 4emittance. The transfer of money can take place either within thecountry or from one country to another.
P !oreign 4emittance.
P :ocal 4emittance.
.$ F (:;<$ <.(00;S 8;lso )tward<emittance9,
The following are the mode of (nward28utward 4emittances.
TT N Telegraphic Transfer.
'T N 'ail Transfer.
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!/ N !oreign /rafts.
%8 N %ayment 8rder.
TC N Travelers CheDue.
&!T N &lectronic !und Transfer
?.1- (mpaired )sset 'anagement /ivision
(mpaired )ssets 'anagement is a new concept in the banking arena. (mpaired )ssets
'anagement ;()'= department is playing a pivotal role in managing Aon %erforming :oan
;A%:= and ritten 8ff :oan %ortfolio of and maintaining its %ortfolio )t 4isk ;%)4= at a lowlevel.
Basically ()' department takes legal steps against classified loan defaulters of the bank. ()'
reduces A%:s through deploying third party recovery agencies and lawyers* amicable settlementswith defaulters* arrangements for auctions of mortgaged properties etc. separate segments of
()' department are engaged to monitor and followup A%:s of different business unit. Theselegal and recovery processes are done under Bank ()' policy and Bangladesh Bank guidelines.
?.1? /ecision 'aking %rocessThe goal of all banking and financial institution is to earn profit and retain the position from the
competitive threat. To attain the goal* the overall planning is done at the headDuarter level by the
management committee which is headed by the C&8* the committee also includes all the divisional heads
from support and business. They meet once in a month or contingent basis. The decision making process
is a top down cascading process with the fle,ibility of incorporating the feedback from the operational
areas to avoid the problems. The management is amply fle,ible to include enough room for participation
from bottom and allows significant room for accommodating strategic changes. The management has
clear bent for the following
'oderni>ation of process and operations to achieve higher service Duality* customer satisfaction
and reduce the paper work
4ecruit* develop and maintain topgrade efficient employees
'aintain* enhance and protect brand image
&nsure convenient working and banking e,perience for the employees and the customers
?.1H $8T )nalysisStrengths
$trong corporate identity
$trong employee bonding and belongings
&fficient %erformance
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0ospitable orking &nvironment
$trong !inancial %osition
Qoung enthusiastic workforce
&mpowered ork force
Weaknesses 0igh charges of :2C
/iscouraging small entrepreneurs
)bsence of strong marketing activities
Aot enough innovative products
/iversification
:ack of %roper 'otivation
0igh Cost for maintaining account
Opportunities /istinct operating procedures
Country wide network
&,perienced 'anagers
0uge %opulation
&l /orado %rogram
Bigger 'arket
Threats
• Ipcoming Banks2Branches
• $imilar products are offered by other banks
• /efault :oans
• (ndustrial /ownturn
!inancial Crisis
?.1" 'anagerial Comparisons between %rivate <
%ublic Bank
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Prot motive vs= service orientation,
(t is true that both the banks have profit motives. But in a public bamk* There are a lot of C$4
;corporate social responsibilities= activities compare to private bank.
The main ob9ectives for the C$4 activities were
• %roviding scholarship for carrying on the education process of the poor students.
• Taking many pro9ects to help the physically and mentally handicapped person.
• Kiving support for the protection of the memory of our liberation war.
• /onations for the victims of many natural calamities etc.
8n the other hand* private does very less C$4 activities. But private bank should increase their
C$4 activities for public interestR and by doing this* they can enhance its customer base.
Political $irection
%ublic administration works under political direction and scrutiny. They put into effect the
policies made by elected members of the legislature ;lawmakers= and potential e,ecutive* while
private administration is not sub9ect to political direction. )ll public bank is influenced by
political direction* but private bank are not.
Sie o& t/e administration,
The si>es of the organi>ation are comparatively large in the public bank than private.
<ed 0apism vs= promptness,
4ed Tapism is seen most of the time in public administration. 8n the other hand* in private
administration* works are done fast. )fter analy>ing the findings of these two banks* it is seen
that in public bank* the assigned works are not completed in due times and it takes months and
sometimes years to finish the work. 8n the other hand* in private bank* any assigned works will
take less time to complete successfully. private bank has the characteristic of doing things
without delay. $o* promptness is there in private bank.
0aking 'ribe,
Bribe is one of the highlighted problems in public sector. (n public bank* bribery happens most of
the time because consumers have taken this assumption for granted that bribing is the only
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effective way to get the work done. Bribery happens here because of redtapism which topic was
mentioned earlier. The work is done very slowly in public sector. 8n the other hand* there is no
option in private bank.
>)al opport)nities to t/e emplo*ees,
&Dual opportunities are not given to employees in public bank. 'erited and sincere employees
are not given the opportunities they deserve and much deprived from it. &mployees who have
power and links are given priority over others even if they don’t deserve. $o* there is corruption.
8n the other hand* in the private bank* employees are given eDual opportunity in the company.
Those who perform well are promoted from one position to another.
?)alication o& t/e sta%s,
&mployees are very important for every organi>ation. 'ost of the employees of private bank is
highly trained and e,perienced in their respective sectors. The employees are also well aware
about their duty and responsibility. %ublic bank has also trained and e,perienced employees but
there are also many employees in the bank who 9oin by performing corruption* for e,ample by
giving bribe. These corrupted employees are not even Dualified for the post they grab.
0ec/nolog*,
The (T sector of public bank is much backdated. There are usages of very old personal computers
which sometimes do not work properly. &ven some of the employees do not have computers to
work with. 8n the other hand* private bank has a strong (T ;(nformation technology= sector
compare to public bank.
:orkplace environment,
ork place environment of private bank is below average. Ao aircondition facility is there. 8ld
furniture’s as well as the necessary items are missing which are reDuired to do 9obs. :imited
space makes the environment even clumsier and messy. The workplace environment in private
bank is very friendly. The arena is properly air conditioned proper ventilation facility is there.
&very employee has their own desk to work properly.
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%.0Co!&lu"io!
Bangladesh is a third world countrywide an under developing bank management system particularly in terms of services and customer care provided by the government run banks.
4ecently the private banks are trying to imitate the develop management system in banking
sector. The private Banks have been found to be investing generally in the pro9ects with Duick returns
resulting higher recovery rate of commercial loans provided by the banks. This leads the banks not to take
up the pro9ects with long gestation period* mode of financing. The short term financing under 'urabaha
and Bai 'ua99al assures the reDuired rate of return* as the mark up of profit is pre assigned according to
the bankers and the users of the loans. 'oreover* the Banks cover their loan risk by taking the collateral
and other forms of securities such as !/4 )ccount with the Bank. Thus* the better performance recovery
rate of commercial loans in Banks is due to its lending portfolio and its different modes of financing. last
of all it can be calculated that *although private bank management system is much develop then the
public bank management system* both are not Duite satisfactory.
H.1 4ecommendation
)fter completion the study we have gathered some practical knowledge about the management
practices in Bank .Aow we would like to provide some recommendations* which might be
helpful to upgrade the management practice of Banking sector is given as under
1. !irst of all the main important thing for an organi>ation is the 4ecruitment* which e,istsin theses bank* is not well designed. 'ost of the bank usually recruited people in
tradition way. (n this case what they can do is that they can go for campus recruitment*hire institute for helping them recruiting people. Because the institutes are well eDuipped
than the bank. They can also go for online recruitment* which is a modern method.
. !rom the point of Training it can be said that their training course is well but not thatmuch practical. They provide training to their employees is their training institute or send
them to B(B' which is one of the reputed institution for the bankers to be to be trained
up. (n this sort of training they usually get theoretical idea. (n this case they can alsoarrange on the 9ob training which will enables the employees to learn more effectively.
-. )nother thing is that after getting training the employee usually not posted it their properly area. !or e,ample an employee got training in Credit but he has been posted!oreign &,change /epartment* in this case what happened is that after couple of time he
forgot the content of the training. $o it should be kept in mind that after training they
should be properly posted. (f a person get training in credit management or risk management he should be posed in the relative field.
?. )nother problem is in their performance appraisal system is Duite back dated. Isually an
employee is eligible to get promotion every after G- years. But which is not true as a
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result employees got frustrated could not concentrate in their work Besides there is not
option for performance basis promotion. (n this case it has to me taken into consideration
that promotion is motivation* which is useful for employees. )s a result it will also usefulto reduce employee turnover.
H. The banks do not have got compensation for its employees which is low comparatively
very low in the organi>ation* which should be increased* especially in the publiccommercial bank.
". There should be also option for reward system which is not present in most of the bank.
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'.0Re(ere!&e"
)nnual report of Bank GGH*GGF*GGE*G11*G1-
0uman 4esource 'anagement Cynthia /. !isher* :yle !. $choenfeldt* James B. $haw ;Hth
&dition=
0uman 4esource 'anagement /ecen>o 4obbins ;"th &dition=
0uman resource 'anagement Kary /essler ;#th &dition=
Bisno* 0. ;1E##=. 'anaging confect. Aewbury %ark* C) $age.
Burke* . . ;1E#F=. 8rgani>ation development ) normative view 4eading* ') )ddisonesley.
/ifferent %rivate < %ublic Banks website
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