An Appraisal of BRAC Bank Limited

Abstract

At present 30 Private Commercial Banks are operating in Bangladesh. BRAC Bank Limited is one of the leading third-generation banks in Bangladesh. BRAC Bank is a scheduled commercial bank established under the Banking Companies. Act, 1991. The bank began its journey on 4th July 2001 with a primary objective of offering all types of commercial banking activities. The core business of the bank comprises of Corporate Banking, Retail Banking, SME Banking and Foreign Trade and Treasury Functions. BRAC Bank Limited has brought revolution in the banking sector of Bangladesh by their SME Banking. Currently the Bank has 34 branches and 400 SME Unit Offices situated allover the country. General Public and BRAC hold the majority shares of BRAC Bank Limited. Also International Finance Corporation (IFC) and Shorecap International have significant shareholdings in the bank. As on December 2007, BRAC Bank Ltd. had 8 directors with Mr. Fazle Hasan Abed in the chair. At 3pt December, 2007 the Paid-up Capital and Total Asset were Tk.1200.00 million and Tk.46382.60 million respectively. Total Deposit of BRAC Bank stood at Tk.37368.41 million on 3pt December, 2007, while total Loans & Advances stood at Tk.3246 1. 10 million. BRAC Bank Limited has a strong management consisting of a number of experienced & skilled officials. A group of devoted & well trained employees are working hard to render the best service to the clients. BRAC Bank has adopted latest technology to improve their quality of services. BRAC Bank is a socially responsible organization with an obligation to consider the interests of customers, employees, shareholders, communities and ecological considerations in all aspects of its operations. BRAC Bank Ltd. has maintained significant growth since inception. It holds a satisfactory level in the CAMEL Rating and its Profitability is also satisfactory. Although BRAC Bank Ltd. is not ranked among the top PCBs, still it has been able to build a respectable position due to dedicated management and innovative banking services to its clients. If the management of BRAC Bank can overcome the few drawbacks it has and come-up with effective marketing & financial strategies, BRAC Bank Ltd. can enter the list of leading PCBs in Bangladesh.