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BDBL Assignment
BDBL Assignment
The Functions of Bangladesh Development Bank and its Role for Economic
Development of Bangladesh
Course Title: Advanced Development Economics
Submitted To
Sirajul Islam
BUBT
Submitted By
ID: 19201206008
Intake: 37
Today’s business world is so dynamic and competitive that organizations are always looking
for talented, skilful and adroit graduates who belong to high degree of adaptability and
thinking quality. These business graduates will be the core part of business organization
someday. So business graduates need to have both theoretical & practical knowledge to
manage the business activity properly. In order to be familiar with a bank’s culture and to
gain some practical knowledge about it, one needs to work in those departments. As a
development bank, BDBL primarily remains committed to provide long-term industrial
financing. It is also includes commercial banking activities including foreign exchanging and
international trade financing. Bangladesh Development Bank Ltd (BDBL) is the prime
concern of development financing institution of country that extends financial assistance both
in local and foreign currencies for setting up new industries to boost up the industrial policy
and financial reforms program of government towards market economy.
Vision
To emerge as the country’s prime Financial Institution for supporting private sector industrial
and other projects of great significance to the country’s economic development. Also be
active participant in commercial banking by introducing new lines of product and providing
excellent services to the customers.
Mission
To be competitive with other Banks and Financial Institutions in rendering services
To contribute to the country’s socio-economic development by identifying new and
profitable areas for investment
To mobilize deposit for productive investment
To expand branch network in commercially and geographically important places
To employ quality human resources and enhance their capability through motivation
and right –type of training at home and abroad
To delegate maximum authority ensuring proper accountability
To maintain continuous improvement and up-gradation in business policies and
procedures
To adopt and adapt to new technology
To maximize profit by strong, efficient and prudent financial performance and
To introduce new product lines according to market needs.
Goal
Our people, products and processes are aligned to meet the demand of our discerning
customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime
objective is to deliver a quality that demonstrates a true reflection of our vision.
• It extends term loans by giving special priority to the SME enterprises for achieving
self reliance as well as increasing productions and empowerment of women.
• Proving working capital loan to industrial projects.
• Provides Equity support in the form of underwriting and bridge loan to public limited
companies.
• Issues guarantees on behalf of borrowers for repayment of loan
• Extends commercial banking services along with deposit mobilization
• Purchases and sales shares or securities of enlisted companies for BDBL and on
behalf of its customers as member of Dhaka Stock Exchange Ltd. And Chittagong
Sock Exchange Ltd. (CSE) for capital Market Development.
• Conduct Projects promotional activities along with preparation of various subject oral
study reports.
Product/Service Scheme
The bank is always committed to serve the clients with the best values and innovative
products and services to enrich its portfolio at the client’s demands and desires.
1. Development Banking
a. Deposit Banking
• Current deposit.
• Saving deposit.
• Short term deposit.
• Fixed deposit.
• Deposit pensions Scheme.
• Other special saving deposit.
• School banking (new)-
a) 5 year term BDBL Sanchay Shceme (BDBKSS).
b) 10 year term Shikkha Sanchay Shceme (SSS).
c) 10 year term Chikisha Sanchay Shceme (CSS).
c. Foreign Exchange
• Local L/C.
• Import L/C.
• Export L/C.
• Back to back L/C.
• Foreign remittance.
• Foreign exchange buy & sale.
a. Training
For upgrading the professional competence and skills of its employees, the bank is
continually arranging training programs both at home and abroad. Every FY they spent a lot
of money for training programs and seminars.
Important national days like National Martyrs and International Mother Language day on
February 21. Independence Day on March 26, Victory day on December 16 and National
Mourn day were observed with due to respect and solemnity. Floral wreaths were laid at the
Shaheed Meenar and at National Martyrs Memorial to pay homage to the martyrs who made
supreme sacrifice to uphold the dignity of the mother tongue and achieve independence of the
country.
The banks functions are not only limited to industrial financing , it is also committed to be
known as an institution that builds long term relationship and delivers awards to its clients
for regular payment of loans as well as responsible for its employees and communities. The
bank promotes various socio-cultural activities, like picnic, sports, etc. for gearing and
cheering up its employees, financial assistance to the bank’s employees, and financial
assistance to the severe ailing employees for proper treatment. Besides, the bank also donates
to charitable institution and government’s relief fund.
Strengths of BDBL
• BDBL is unique in its nature having both specialized and commercial operation. It is
regarded as a development bank as well as commercial one.
• BDBL has Skilled financial management, good credit control and few bad debts.
• A strong balance sheet. Access to extensive credit, a strong credit rating, and a good
relationship with the bank and other sources of finance.
• Skilled employees, successful recruitment, and effective training and development.
• Govt. support and Encouragement.
• One of the fundamental objectives of BDBL is to boost up small medium industries.
Weaknesses of BDBL
• Decision making process is lengthy.
• Lack of promotional activities.
• Less diversified product and services line. The salary of BDBL is not high enough
related with other commercial bank operating in Bangladesh.
• MAN/Internet/on-line services in BDBL is not upgraded, many of their works through
manually.
Opportunities of BDBL
• There are huge demand of micro-credit, small and medium scale finance.
• There are opportunities of innovation in the banking industry.
• Bangladesh economy is expanding rapidly, so the need of bank is growing up.
Threats of BDBL
• More and less all the competition in the banking industry are competent , so to survive
BASIC Bank no. of defaults loan is 37% which is real threats of bank business.
• Due to government institution many of the banking decision basic by political
government
• Too much interrupted by international assistance institutions like World Bank, IMF,
WTO.
Conclusion
Most of the banks of Bangladesh are offering a wide array of financial services including new
types of loans and advances and some whole new services are lunched every year. As a
government owned bank, Bangladesh Development Bank Ltd. (BDBL) also has to discover
new scopes to reach its goal. As it is a state owned bank, it should go to the people’s heart
through various schemes. It should follow a mix lending policies designed to improve the
quality of its portfolio and reduce its risk exposure so that in near future when competition
among banks will serve more it can stand with its own entity.
As consider industrial band BDBL intends to set standards as the market leader in
Bangladesh. It demonstrates that a locally owned institution can provide efficient, friendly
and modern banking service on a profitable basis. Human Resource Management Department
is the most confidential department for any organization as well as Human Resources
Management in BDBL. The BDBL is a bank that confirms the best service to the customers
as well as to the employees by Human Resource Division. BDBL is the fastest growing Bank
in Bangladesh. Through BDBL is government supported organization it has strong capital
adequacy and after merger now BDBL operate business fairly well. BDBL corporate social
responsibility (CSR) based on ethical values following by people, planet, and the profit are in
compliance with legal and regulatory requirements which encompass employees, customers,
business associates, shareholders, suppliers, regulatory authorities and the community at
large. BDBL main intention is to rapid industrialization as such bank always try to invest
productive sectors rather than commercial banking system. BDBL has already developed
goodwill among its clientele by offering its excellent services. This success has resulted from
the dedication, commitment and dynamic leadership among its management over the periods.
The BDBL therefore emphasizes on persuasions rather than going for legal action in order to
recover its classified loans. Bank considers the practical aspects of the project being sick and
extends further finance or reschedules the repayment period. Into eliminate those problems to
increase in do are encouraging in the sense that it shows efficient management can lead to
successful banking business in Bangladesh. This could be source of useful lessons to the total
banking sector. BDBL being the best among the government owned banks and should go
hand in hand with modern banking system and culture to retain and improve the present
position in the financial arena.
BDBL is one of the prime development financing institutions in Bangladesh to accelerate the
pace of industrialization of the country. It plays significant role in the industrial development
of Bangladesh. As a finance institution it has both strength and weakness. Though, it is said
that the contribution of BDBL is below the expectation & it fails to achieve the target, at
present BDBL has taken so many steps for the expansion of industrial sector development.
Today’s base of industrial development is totally based on Bangladesh Development Bank
Limited, so by any means we cannot deny the generous contribution of BDBL in the
industrial development sector.
Reference
1. BDNews24.com. 2010. New development bank begins operations. [ONLINE]
Available at: http://bdnews24.com/bangladesh/2010/01/03/new-development-bank-
begins-operations1. [Accessed 19 January 16]
2. The Daily Star 2012. Development Bank takes off [ONLINE] Available at:
http:/thedailystar.com/bangladesh/2012/07/05/development-bank-takes-off. [Accessed
19 January 16]
3. Bangladesh Development Bank LTD Annual Report 2016
4. Bangladesh Development Bank Ltd. 2015. Bangladesh Development Bank. [ONLINE]
Available at: https://en.wikipedia.org/wiki/Bangladesh_Development_Bank.
[Accessed 18 January 16].
5. Bangladesh Development Bank Ltd. 2014. Corporate Profile. [ONLINE] Available at:
http://www.bdbl.com.bd/AboutUs_Corporate_info.php. [Accessed 13 January 16]