Case Study

About
“Organizational Behavior Practices in Bangladesh
A case Study on Bank Asia LIMITED”
Course (613), Organizational Behavior

Submitted TO: Submitted BY:

Prof. Dr. Ataur Rahman Ms. Rafiunnahar Rahana

Ex.Chaimarman MPHRM Program , 5th Batch
Department of Management ID NO: 24-05-18-035(B)
University of Dhaka Department of Management
University of Dhaka

Date of Submission: 30th March, 2018

Letter of Transmittal

Date: 27 March, 2018

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Prof. Dr. Ataur Rahman
Course Instructor
Course Titles: Organizational Behavior (613)
Department of Management
University of Dhaka

Sub: Submission of transmittal

Dear Sir,

It is my great pleasure to submit the transmittal report titled “Organizational behavior practices in
Bangladesh”, A Case study on Bank Asia ltd” which has been prepared as an integral part of the course
requirement of my MPHRM Program. My study was held organizational practices in Bangladesh, case
study on Bank Asia ltd.

It will be highly appreciated if you kindly accept the report. Your positive action regarding this matter
would be very much helpful for my academic career. If you need any further clarification or information
in information in interpreting this study, I will be glad to answer your queries.

Sincerely yours

Rafiunnahar Rahana
Id-24-05-18-035
University of Dhaka

ACKNOWLEDGEMENT

At first, I would like to express my deep gratitude to almighty Allah the supreme authority of the
universe. It is my greatest pleasure to get the opportunity to complete my report on bank Asia

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limited, one of the leading third generation bank in Bangladesh. I think my experience at Bank
Asia Limited will provide me with lots of practical knowledge regarding the banking industries.

I would like to express my cordial gratitude to my Mr. K.S. Nazmul Hasan,SVP and Head of
People Management Division my Line In charge Mr. Md. Azharul Islam, VP and Head of
Training, Bank Asia Institute for training and development, Mr. Sujit Kumar Sen, Faculity
Member & Deputy Head of Training, Bank Asia Institute for training and development, my
supervisor in the bank during the study period for their kind cooperation.

I would like to acknowledge Prof. Dr. Ataur Rahman, Department of Management, University of
Dhaka for supervising and guiding me in analyzing and preparing the report by proving all kinds
of updated information which made this report as excellent one.

I am grateful to university of Dhaka for giving me the opportunity to work outside for attaining
practical knowledge.

Finally I would like to convey my gratitude to all my teachers, friend and many others who
showed and provided their support to prepare the report.

Contents
............................................................................................................................................Error! Bookmark not defined.
Contents......................................................................................................................................................................4

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Chapter 1: Introduction....................................................................................................................................................6
Executive Summary:...................................................................................................................................................7
1.2 Rationale OF THE REPORT:................................................................................................................................7
11.3 OBJECTIVES OF THE STUDY:.........................................................................................................................7
1.4 Limitation of the STUDY:......................................................................................................................................7
Chapter 2: Data Information of........................................................................................................................................8
Bank Asia Ltd..................................................................................................................................................................8
2.1 POPULATION PARAMETER...............................................................................................................................9
2.2 SAMPLING METHOD.........................................................................................................................................10
2.3 SOURCES OF DATA COLLECTION:.................................................................................................................11
2.4 DATA TABULATION AND ANALYSIS :..............................................................................................................12
2.5 DATA PRESENTRATION:..................................................................................................................................12
2.6 COMPUTER SOFTWEAR USE..........................................................................................................................13
Chapter 3: NATURE AND SCOPE................................................................................................................................13
Chapter 4: Profile of the Bank Asia Ltd.........................................................................................................................18
4.1 BACKGROUND OF THE BANK:........................................................................................................................19
An organizational structure means how various kinds of activities such as task allocation, coordination as well as
supervision are directed towards the attainment of the organizational aims............................................................21
Impact of organization’s structure and culture on the performance of the business of Bank Asia Limited...................22
Factors that influence individual behavior at work in bank Asia Limited.......................................................................23
Different approach to management and leadership of Bank Asia Limited....................................................................23
Different approaches to management used by different organizations in Bangladesh.................................................25
Change Management Programs in Bank Asia Limited.................................................................................................26
4.2 FUNCTIONAL DEPARTMENTS OF BANK ASIA:..............................................................................................27
4.3 Organizational Behavior chat:.............................................................................................................................39
4.4 Present Program:................................................................................................................................................39
This means that with even small improvements to the application process, banks stand to see significant
increases in account openings. Below we outline the key opportunities banks have to streamline and enhance
their digital account opening process with Omni..................................................................................................41
Website: omniaccount.bankasia-bd.com..............................................................................................................41
4.5 VISION OF BANK ASIA LIMITED:......................................................................................................................42
SWOT Analysis of Bank Asia....................................................................................................................................46
4.8.1 Internal Strength:.........................................................................................................................................47
Training on Sustainable Development of Agent Banking in Bangladesh......................................................................47

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Training on Sustainable Development of Agent Banking in Bangladesh......................................................................47
4.8.2 Internal Weaknesses:...........................................................................................................................................48
4.8.3 External Opportunities:.........................................................................................................................................48
4.8.4 External Threats:..................................................................................................................................................49
4.6: Financial Highlights:...........................................................................................................................................50
Chapter 5: Analysis &....................................................................................................................................................54
Findings.........................................................................................................................................................................54
5.1 ANALYSIS:.........................................................................................................................................................54
5.2 MAJOR FINDINGS:............................................................................................................................................54
Chapter 6: Recommendation & Conclusion..................................................................................................................55
6.1 Conclusion:.........................................................................................................................................................55
6.2 Recommendation:...............................................................................................................................................56
BIBLIOGRAPHY:......................................................................................................................................................59

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Assignment on Organizational Behavior Practices in
Bangladesh:
“A Case Study of Bank Asia Limited”

Chapter 1: Introduction
2

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Executive Summary:

Especially countries like Bangladesh, our agricultural, industrial and economic development are
very much depending on smooth operation of Banks. So we must ensure the efficient and
effective performance of this sector. Banking- A pillar of economy-is guided by laws, rules,
regulations and practices. The prime objective of the banking industry as a whole is to collect
deposits from the public and to invest the same in the form of loans and advances to businesses.
The service necessary for financing of import, export guarantees etc is also the function of banks.
In our country, like others, Banking companies act 1991 remain operative to control and monitor
the function of banks in coordination with the other laws. Since the banking functions are
commercial in nature, many laws from the negotiable instrument act to civil procedure code are
essential in the day-to-day operations of the banks.

1.2 Rationale OF THE REPORT:

The study focuses on the following areas of Bank Asia Limited:

- To ease of corporate culture of organization

- The ability to use the tools of organizational behavior to understand behavior in

organizations is one reason for studying this subject.

- A second reason is to learn how to apply these concepts, theories and techniques to improve
behavior in organizations so that individuals, groups and organizations can achieve their
goals.

- Managers are challenged to find new ways to motivate and coordinate employees to ensure
that their goals are aligned with organizational goals.

11.3 OBJECTIVES OF THE STUDY:

The study has been undertaken with the following objectives:

- To know about Bank Asia Limited & its Internal & External environment
- To know proper implementation of organizational culture in Bank Asia Limited
- To know the cultural policy of Bank Asia Limited.
- To identify the factors that influence corporate culture
- To identify the drawbacks of the cultural policy of Bank Asia ltd.

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1.4 Limitation of the STUDY:

1. Limitation of time was a major constraint in making a complete study. The time duration
was too limited to cover all the banking areas. Many aspects could not be discussed in the
present study
2. As the collected primary data only from Bank Asia, Institute for Training &
Development, ICCD(Internal Credit & Compliance Department, Peoples Management
Department, Group Finance Department, Credit Risk Management Department, Special
Asset Management Department & Channel Banking Division, it was not possible to
collect sufficient data on Bank Asia Limited as a whole
3. Due to the bank’s policy of maintaining secrecy it was not possible to access coredata of
Bank Asia Limited

Chapter 2: Data Information of

Bank Asia Ltd.

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2.1 POPULATION PARAMETER

A parameter is a characteristic of a population. A statistic is a characteristic of a sample.

Inferential statistics enables you to make an educated guess about a population parameter based
on a statistic computed from a sample randomly drawn from that population (see Figure 1).

Figure 1.Illustration of the relationship between samples and populations.

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2.2 SAMPLING METHOD

It is incumbent on the researcher to clearly define the target population. There are no strict rules
to follow, and the researcher must rely on logic and judgment. The population is defined in
keeping with the objectives of the study.

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2.3 SOURCES OF DATA COLLECTION:

Information used in this report has been collected from both primary and secondary sources.
Primary data were collected mainly through the writer’s observation of the credit approvals and
deposit techniques, informal interviews of executives, officers and employees of Bank Asia
Limited.

Majority of the information were collected from the secondary sources, which include books,
publications, reading materials, internet and reports published by Bank Asia Limited and some
other internship report and registers of different departments and CRM manual of Bank Asia
Limited and Stelar which is the computer system of the Bank Asia Limited.

 Primary Sources Data:

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Primary data are measurements observed and recorded as part of an original study. When the
data required for a particular study can be found neither in the internal records of the enterprise,
nor in published sources, may it become necessary to collect original data. For the completion of
this report, the primary sources of data are –

 Discussion with officials of the Bank Asia Ltd.

 Experts’ opinion and comments,
 Observations of the officials.
 Interviewing employee
 Interviewing HR managers

Secondary Sources Data:

The data which has already been collected by others, such data are called Secondary data. For
this internship report, the secondary data are collected from the below sources-

 Procedure manual published by the Bank Asia Limited

 Annual reports of the Bank Asia Limited.
 Relevant books, Newspaper, journals etc.
 Published  of different products,
 Office circular and other published papers,
 Website of the Bank Asia Limited; www.bankasia-bd.com

2.4 DATA TABULATION AND ANALYSIS:

This is an Analytical report mainly aiming to show the loan-deposit system and maintaining
techniques and amounts of Bank Asia Limited. The data gathered from both primary and
secondary sources were arranged orderly to get a clear picture of the Bank Asia’s credit
management policy and depository system. The study includes both qualitative and quantitative
analysis of loan-deposit system. Based on the observational information writer also tries evaluate
and analyze the problems involved in various phases of the credit process and deposit process.

2.5 DATA PRESENTRATION:

The seller being with the terms and condition of the credit proceeds to dispatch the required
goods to the buyer and after that, has to present the document evidencing dispatching of goods to
the negotiating bank on or before the stipulated expiry date of the credit. After receiving all
documents, the negotiating bank than checks the documents against the credit. If the documents
are found in order, the bank will pay, accepts or negotiate to the issuing bank. This issuing bank
also checks the document and if they are found as per credit requirements, either Effect payment
or reimburses in the pre-agreed manner

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2.6 COMPUTER SOFTWEAR USE
Computer software, or simply software, is a part of a computer system that consists of data or
computer instructions, in contrast to the physical hardware from which the system is built. In
computer science and software engineering, computer software is all information processed by
computer systems, programs and data. Computer software includes computer programs, libraries
and related non-executable data, such as online documentation or digital media. Computer
hardware and software require each other and neither can be realistically used on its own.

Chapter 3: NATURE AND SCOPE

Before we go through scope & nature of organizational behavior we have also learned about what
organizational behavior and its view of literature-

Literature Review:

Keith Davis and John Newstrom (1985) has defined O.B. as "the study and application of
knowledge how people act or behave within organization. It is a human tool for human benefit. It
applies broadly to the behavior of people in all types of organizations such as business,
government, schools and service organizations."

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In the opinion of Robbins, "O.B. is a field of study that investigates the impact that individuals,
groups and structure have on behavior within organizations for the purpose of applying such
knowledge towards improving an organization's effectiveness".

The above definitions are comprehensive ones as these contain all characteristics of O.B. In
brief, what O.B. studies are three determinants of behavior in organizations individuals, groups
and structure?

Organizational behavior in the words of Keith Davis may be defined as - "Organizational

behavior is the study and application of knowledge about human behavior in organizations as it
relates to other system elements, such as structure, technology and the external social system.

To sum up, O.B. is concerned with the study of how and what people act in organizations and
also how their acts affect the performance of the organization. It also applies the knowledge
gained about individuals, groups and the effect of structure on human behaviour in order to make
organizations work more effectively.

Organizational behavior is a field of study that investigates the impact that individuals, groups
and structure have on behavior within organizations, for the purpose of applying such knowledge
toward improving an organization's effectiveness.

An organization is a collection of people who work together to achieve a wide variety of goals,
both goals of the various individuals in the organization and goals of the organization as a whole.
Organizations exist to provide goods and services that people want. These goods and services are
the products of the behaviors of workers.

Organizational behavior is the study of the many factors that have an impact on how individuals
and groups respond to and act in organizations and how organizations manage their
environments. Although many people assume that understanding human behavior in
organizations is intuitive, many commonly held beliefs about behavior in organizations, such as
the idea that a "happy worker is a productive worker," are either entirely false or true only in
specific situations. The study of organizational behavior provides a set of tools—concepts and
theories—that help people understand, analyze and describe what goes on in organizations and
why. How do the characteristics of individuals, groups, work situations and the organization
itself affect how members feel about their organization?

The ability to use the tools of organizational behavior to understand behavior in organizations is
one reason for studying this subject. A second reason is to learn how to apply these concepts,
theories and techniques to improve behavior in organizations so that individuals, groups and
organizations can achieve their goals. Managers are challenged to find new ways to motivate and
coordinate employees to ensure that their goals are aligned with organizational goals.

Organizational behavior has emerged as a separate field of study. The nature it has acquired is
identified as follows:

a. A Separate Field of Study and not a Discipline Only

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By definition, a discipline is an accepted science that is based on a theoretical foundation. But,
O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical
background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a
discipline only.

b. An Interdisciplinary Approach

Organizational behavior is essentially an interdisciplinary approach to study human behavior at

work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology,
sociology and anthropology to make them applicable for studying and analyzing organizational
behavior.

c. An Applied Science

The very nature of O.B. is applied. What O.B. basically does is the application of various
researches to solve the organizational problems related to human behavior. The basic line of
difference between pure science and O.B. is that while the former concentrates of fundamental
researches, the latter concentrates on applied researches. O.B. involves both applied research and
its application in organizational analysis. Hence, O.B. can be called both science as well as art.

d. A Normative Science

Organizational Behavior is a normative science also. While the positive science discusses only
cause effect relationship, O.B. prescribes how the findings of applied researches can be applied
to socially accept organizational goals. Thus, O.B. deals with what is accepted by individuals and
society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management theories.

e. A Humanistic and Optimistic Approach

Organizational Behavior applies humanistic approach towards people working in the

organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief
that people have an innate desire to be independent, creative and productive.

f. A Total System Approach

The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioral scientists to analyze human
behavior in view of his/her socio-psychological framework. Man's socio-psychological
framework makes man a complex one and the systems approach tries to study his/her complexity
and find solution to it.

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Organizational Behavior

The three internal organizational elements are, people, technology and structure and the fourth
element, external social systems may be taken as the scope of O.B.

1. People

The people constitute the internal social system of the organization. They consist of individuals
and groups. Groups may be large or small, formal or informal, official or unofficial. They are
dynamic. They form, change and disband. Human organization changes every day. Today, it is
not the same as it was yesterday. It may change further in the coming days. People are living,
thinking and feeling being who created the organization and try to achieve the objectives and
goals. Thus, organizations exist to serve the people and not the people exist to serve the
organization.

2. Structure

Structure defines the sole relationship of people in an organization. Different people in an

organization are given different roles and they have certain relationship with others. It leads to
division of labor so that people can perform their duties or work to accomplish the organizational
goal. Thus, everybody cannot be an accountant or a clerk. Work is complex and different duties
are to be performed by different people. Some may be accountant; others may be managers,
clerks, peons or workers. All are so related to each other to accomplish the goal in a co-ordinate
manner. Thus, structure relates to power and duties. One has the authority and others have a duty
to obey him.

3. Technology

Technology imparts the physical and economic conditions within which people work. With their bare hands
people can do nothing so they are given assistance of buildings, machines, tools, processes and
resources. The nature of technology depends very much on the nature of the organization and influences
the work or working conditions. Thus, technology brings effectiveness and at the same restricts people in
various ways.

4. Social System

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Social system provides external environment which the organization operates. A single
organization cannot exist also. It is a part of the whole. One organization cannot give everything
and therefore, there are many other organizations. All these organizations influence each other. It
influences the attitudes of people, their working conditions and above all provides competition
for resources and power.

O.B. is the study of human behavior at work in organizations. Accordingly, the scope of O.B.
includes the study of individuals, groups and organization/structure. Let us briefly reflect on
what aspects each of these three cover.

Individuals

Organizations are the associations of individuals. Individuals differ in many respects. The study of
individuals, therefore, includes aspects such as personality, perception, attitudes, values, job satisfaction,
learning and motivation.

Groups of Individuals

Groups include aspects such as group dynamics, group conflicts, communication, leadership,
power and politics and the like.

Organizational Behavior addresses following points:

- Organizational behavior studies the factors that impact individual and group behavior in
organizations and how organizations manage their environments. Organizational behavior
provides a set of tools—theories and concepts—to understand, analyze, describe and manage
attitudes and behavior in organizations.

- The study of organizational behavior can improve and change individual, group and
organizational behavior to attain individual, group and organizational goals.

- Organizational behavior can be analyzed at three levels: the individual, the group and the
organization as a whole. A full understanding must include an examination of behavioral
factors at each level.

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- A manager's job is to use the tools of organizational behavior to increase effectiveness, an
organization's ability to achieve its goal. Management is the process of planning, organizing,
leading and controlling an organization's human, financial, material and other resources to
increase its effectiveness.

Contributing Disciplines to the Organizational Behavior Field

Organizational behavior is an applied behavioral science that is built upon contributions from a
number of behavioral disciplines. The predominant areas are psychology, sociology, social
psychology, anthropology and political science.

Psychology

Psychology is the science that seeks to measure, explain and sometimes change the behavior of
humans and other animals.

Sociology

Sociologists study the social system in which individuals fill their roles; that is, sociology studies
people in relation to their fellow human beings.

Social Psychology

An area within psychology that blends concepts from psychology and sociology and that focuses
on the influence of people on one another.

Anthropology

The study of societies to learn about human beings and their activities.

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Chapter 4: Profile of the Bank Asia Ltd.

4.1 BACKGROUND OF THE BANK:

Bangladesh economy has been experiencing a rapid growth since the 1990s.
Industrial and agricultural development, international trade, inflow of expatriate
Bangladeshi workers' remittance, local and foreign investments in construction,
communication, power, food processing and service enterprises ushered in an era
of economic activities. Urbanization and lifestyle changes concurrent with the
economic development created a demand for banking products and services to
support the new initiatives as well as to channelize consumer investments in a
profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established Bank Asia Limited in
the year of 27th November 1999.

The Bank was incorporated as a public limited company under the Companies Act,
1994. The Bank started its commercial operation on September 28, 1999 with an
authorized capital of Tk. 15000 million and paid up capital of Tk. 7629.96 million.
The present authorized capital of the Bank is Tk. 20,000 million. The paid up
capital of the Bank stood at Tk. 8,812,599,100.00 as on December 31, 2016. The
total statutory reserves of the Bank as on December 31, 2016 stood at Tk.
6,533,632,030.00.

The Bank has 125 Branches including 8 Islamic Banking Branches, 10 SME
Service Centers, more than about-1500 union digital center & agent point, 2
offshore Banking Unit, and 5 Agri/SME along with 10 Branches under Bank Asia
Securities Limited across the country and a wide network of correspondents all over
the world. The Bank has plans to open more Branches in the current financial year
to expand the network.

The Bank offers the full range of banking and investment services for personal and
corporate customers, backed by the latest technology and a team of highly
motivated officers and staff. In their effort to provide excellence in banking service,
the bank has launched Online Banking Service, joined a countrywide shared ATM
network and introduced a co-branded credit card. A process is also underway to
provide E-Business facility to the banks clientele through Online and Home
Banking solutions.

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Bank Asia is the preferred choice in banking for friendly and personalized services,
cutting edge technology, tailored solutions for business needs, global reach in trade
and commerce and high yield on investment.
In these competitive and revolving dynamic business world business organizations especially
banks are facing various kinds of global or domestic business challenges for which change is
inevitable for ensuring continuous growth and to achieve the goals and objectives of the
companies (Tristan, 2012). As a young business leader I would like to encompass all kinds of
constructive transactional or transformational changes that will play a significant role on the
profitability and growth of the company (Tristan, 2012).

In this comprehensive study, a short analyze on organizational behavior practice in Bangladesh is

presented and a case study is conducted on Bank Asia Limited, a leading local banks in
Bangladesh.

In this report also, comparison and contrast of the organizational culture and structure, the
relationship between organizational performance and structure and culture, factors which will
affect individual behavior, effectiveness of different leadership styles in Bank Asia Limited,
organizational theories that underpin the practice of management, different approaches to
management and other related issues will be analyzed in the light of Bank Asia Limited.

Understand the relationship between organizational structure and culture of Bank Asia Limited.
As a whole, there is a strong relationship between organizational structure and culture. In
Bangladesh, organization structure is not very formal and organizational culture is regional based
as most of the organization is locally patronized. There are some multinationals organizations
and some local organizations that are strictly follow a specific structure in their organizations.
Bank Asia Limited, a local commercial banks continuing their operations with formal structure
and own culture within the organizations and also influences the others in the market. The
relationship between organizational structure and culture of Bank Asia Limited is presented
below:

Organizational structures and culture of Bank Asia Limited

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An organizational structure means how various kinds of activities such as task allocation,
coordination as well as supervision are directed towards the attainment of the organizational
aims.
Bank Asia Limited is one of the renowned local commercial banks companies which have
glorious history and pride. The company has over 200 thousands customer accounts and the
company follows some organizational structures where the organization tries to ensure common
organizational culture in all branches of the bank. The organizational structures of the Bank Asia
Limited along with their cultural implications are briefly discussed below:

Hierarchical Structures
In the Hierarchical organizational structure of Bank Asia Limited different levels of employees
report upwards to team leaders as well as then up to operational management. This
organizational structure will also have a wide chain of command with a view to narrowing span
of control. In this case, the chain of command of the company refers to the number of levels
within an organization (Journals, 2012). In this organizational unit the span of control is the
number of employees who are also directly supervised by one person. In bank Asia Limited such
kind of organizational structures can also lead to slower communication channels at the same
decision-making style is also slow enough (Griffin, 2012).

Hierarchical
Structures

Flat organizational
structure

Matrix structure

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A flat organizational structure

In case of flat organizational structure Bank Asia Limited has relatively fewer layers of
management and wider spans of control. This means in this organizational structure operative
can also access and communicate with managers more easily and quickly Michel, 2013). This
organizational structure relies on workers taking more responsibility for decision-making.

A matrix structure

In bank Asia Limited matrix organizational structure pulls together employees who combine the
relevant product and functional expertise with a view to achieving the organizational goals and
objectives. In this organizational structure people are also selected from different levels as well
as departments within the business Michel, 2013). This organizational structure also can be used
in both hierarchical and flat organizations (Tristan, 2012). Matrix organizational structures are
also frequently used for specific projects. In this case, cooperative organizational culture is
basically followed.

Impact of organization’s structure and culture on the performance of the business of Bank
Asia Limited
In Bank Asia Limited their organizational structure and culture has an inter-reliant relationship
with one another and where structural and cultural mechanisms are intended to achieve the
organizational goals and objectives. In this case it is to be noted in Bank Asia management
structure of an organization effectively determines the dispositions, behaviors, attitudes, as well
as ethical issues that basically create the organizational culture (Griffin, 2010). Here we also can
say that the organizational arrangement of the Bank Asia is basically hierarchical where most of
the decision-making power is centralized at the top position of the company (Griffin, 2012). In
this situation the organizational culture of the company also replicate a lack of freedom and
which is also expected autonomy at the lower positions as well as levels of that organization. On
the other hand if the management structure of an organization is decentralized, with the
collective power as well as authority at most of the organizational levels of the company the
culture is more likely to be more self-governing, personalized and accountable (Miller, 2009).

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Finally it can be said that the company often brings various kinds of changes in their
organizational structure and also does cultural changes to achieve strategic goals and objectives.

Factors that influence individual behavior at work in bank Asia Limited

Bank Asia Limited always believes in committed and devoted workforce. For this reasons the
company always tries to minimize restraining factors while maximizing favorable factors to
boost up the individual behavior at work. Some of the most important factors that always
influence the individual behavior at work in Bank asia are briefly discussed below:

 Decision making factor: Bank Asia Limited also believes in that participation in decision
making not only harness the skill level of the employees but also it is one of the
motivating factors that lead towards the better performance (Griffin, 2012).
 Perception: Perception means the cognitive process of the individuals of Bank Asia for
interpreting the various kinds of organizational factors or stimuli in an effective
meaningful way. This factor also influences behavior of the individuals (Wooden, 2006).
 Motivating factors: Bank Asia always put emphasize on the motivational factors that
significantly help to boost up the performance of the people in the company.
 Personality: Personality of the people in Bank Asia means characteristics as well as
distinctive traits of an individual which greatly influence the behavior of an individual
very much.
 Attitude: In Bank Asia attitudes of the personnel also greatly influence on all the
activities and behavioral pattern of the employees (Griffin, 2012).
 Demographic Factors: various kinds of demographic factors which influence behavior of
the peoples of the organizations which are also nationality, age, sex, race, socio economic
background as well as education etc. Bank Asia also mostly prefers the persons that
always belong to good socio-economic locale, and well educated (Griffin, 2010).
 Capability factors: mental and physical capacity of the personnel to do something
effectively can be termed as ability. In Bank Asia Skill and ability of the individual
behavior of an organization also influence the performance of the people.

Different approach to management and leadership of Bank Asia Limited

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The success of an organization largely depends on their leader’s ability and leadership
approaches that the company applies. Effectiveness of leadership styles also vary with their
nature and the effectiveness of the leadership also varies organizations to organizations Michel,
2013).

The effectiveness of different leadership styles are briefly described below:

 Autocratic leadership

In Autocratic leadership style the leaders have extreme power over the employee and
subordinates in the organization. Day by day the practice of autocratic leadership is decreasing as
it causes absenteeism and high turnover.

 Bureaucratic leadership

In this leadership styles leaders follow some rules strictly and they also influence their staff to
follow these procedures and rules. This leadership style is also relatively inflexible and
ineffective as it is not time effective Michel, 2013).

 Charismatic leadership

The application of charismatic leadership is increasing day by day where a charismatic

leadership style is similar to transformational leadership style. Organizational teams, groups,
staffs are also inspired by these charismatic leaders (Griffin, 2012).

 Democratic leadership or participative leadership

In democratic leadership style leaders involve other team members as well as give opportunity to
contribute in the final decision-making process.

 Laissez-faire leadership style

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Laissez-faire leaders also depend and leave their work to the team organizational members to on
their own. It is effective when sufficient control is no occurred.

In bank Asia Limited, charismatic leadership always preferred because the nature of banking is
always dynamic and changing. To cope up with the world economy and also with national
economy, dynamic leadership is prerequisite. For the above reasons, Bank Asia Limited recently
initiated a leadership program which is called Foundation of Leadership Development Program
(FLDP). This program has a long term effect in the organization and also this program is
working as panacea to have some charismatic leaders.

Different approaches to management used by different organizations in Bangladesh

Management is the distinct process of planning, organizing, leading and controlling with a view
to achieving the organizational goals and objectives. Management of the organizations underpins
various kinds of theories to achieve the goals and objectives of this process. In most of the
organizations we notice they follow separate theories for their management and strategic
management issues (Michel, 2013). In case of planning and strategic planning management
organizational theories aims at ensuring effective accomplish of the future activities to achieve
the goals and objectives.

In case of organizing management applies different theories to coordinate various activities. In

case of leadership management influence the people of the organization by applying various
kinds of leadership and organizational theories. In case of controlling various kinds of
controlling theories or control mechanism also helps organizations to achieve the goals and
objectives.

Approaches to management can be basically divided in three main categories such as Neo-
classical, classical and modern approaches. Different kinds of management approaches under
these three broad categories are briefly discussed below:

 Bureaucratic management

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 In this system emphasize is given on authority and structure while various kinds of principles and
practices are developed. Formal emachasize and technique are also considered as the core factors in
case of bureaucratic management.

 Administrative management approaches

Henry Fayols is the father of administrative management approach where he suggested

fourteen principles and most of the management activities are done by applying the
principles of discipline, direction, unity of command, scalar chain, equity as well as initiative.

 Scientific management

Scientific management approach is one of the most widely used management approaches
developed by F.W Taylor. Scientific management encourages managers to apply the best
way by applying four principles (Michel, 2013).

In Bank Asia Limited, administrative management approach is used in corporate office and
in all branches also. To regulate all the branches I n a uniform way this approach is very
crucial. Bank Asia Limited also use autocratic management styles to some extent depending
on the nature objectives and goals to achieve.

Change Management Programs in Bank Asia Limited

In Bank Asia various kinds of change management programs are introduced with the direct
intervention of their leaders (Annual Report, 2013). In this case the successful accomplishments
of the transactional and transformational changes greatly depend on the tactics, commitment and
devotion of their leaders.

In case of transactional change, leaders of the organization motivate their subordinates to

introduce and sustain behavioral or cultural change. Here behavioral adaptations and other minor
changes are also adapted to employees with the direct intervention of the leadership theories.

On the other hand, transformational leadership also ensures transformational changes while the
structural changes of the organizations are introduces. In this case, almost all of the aspects of the

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management and organizations are changes (Annual Report, 2013). Such kinds of change is
difficult enough but by applying appropriate leadership styles also help to successfully pass
various hurdles of change period. The influence of leadership in change period is pervasive as it
influence in the overall change process from freezing, moving and refreezing (Griffin, 2012).

4.2 FUNCTIONAL DEPARTMENTS OF BANK ASIA:

 Cash Department:  

Any service providing organization has two parts: front-end and back-end. Front-end part deals
directly with the customers and the back-end part creates the base on which the front-end tasks
are performed, For the effective operation of the organization, both the front-end and back-end
parts have to be operated effectively. Therefore, both the part s are important. The cash or teller
section is a front-end part which deals with the customers of the bank directly. Since, the quality
of service is very important for a service providing organization, cash section of the bank should
provide high quality service to the customers.

Different types of tasks are conducted in the cash section, such as:

 Cash withdrawal
 Cash deposit
 Cheque deposit
 Transfer of funds from one account  to another
  Receiving GrameenPhone, Banglalink, Rankstel bills
 Receiving cash deposits for PO.

These tasks are described below:

 Cash withdrawal:

The cash section receives cheques from the clients for cash withdrawal.

After receiving the cheques, the teller has to carefully verify the validity of the cheque. In order
to do that four corners of the cheque are checked:

1. Bank & Branch name

2. Date
3. Signature of the account holder
4. Amount of money written in words and in figure

Beside these four corners, the teller should also notice that whether the payment is made to the
right person mentioned in the cheque. If the person presenting the cheque is not the account
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holder, the teller may verify the person if felt necessary (In such a case, any authorized person of
the bank may verify the person presenting the cheque).

The person presenting the cheque has to make two signatures on the back of the cheque. One for
placing the cheque and the other for receiving the money.

 Cash deposit:

A customer can come to the bank to deposit cash. In order to deposit cash, he or she has to fill a
deposit slip with the amount he or she wants to deposit He also has to write the date, the
denomination of the amount and put a signature. The teller puts the “Cash Received” seal on the
slip after receiving the money. Then he and an authorized officer sign on the slip and carbon
copy of the slip is given to the depositor. Then the teller credits the depositors account by the
amount deposited in the ‘Stelar’ software.

 Cheque deposit:

A customer can come with cheque of other banks .Then the bank collects the proceeds for its
customer. If the cheque is issued by or drawn on any bank within Dhaka city then a clearing seal
is given. On the other hand, if the cheque is issued by or drawn on any bank outside Dhaka city
then a collection seal is given. These cheques must be account payee only otherwise the teller
should not accept them. First the cheque is crossed with the bank seal. The issuing bank name,
branch name, cheque no. & date is written on the deposit slip. It is then sent for clearing or
collection depending on the issuing bank branch.

 Reasons for cheque dishonor:

1. Refer to drawer
2. Not arranged for
3. Effects not cleared. May be presented again.
4. Exceeds arrangements
5. Full cover not received.
6. Payment stopped by drawer.
7. Payee’s endorsement irregular/ required.
8. Payee’s endorsement irregular, require Bank’s confirmation.
9. Drawer’s signature differs/required.
10. Alterations in date/ figures/ words require drawer’s full signature.
11. Cheques are post dated/ out of date/ mutilated.
12. Amount in words and figures differs.
13. Crossed Cheques must be presented through a bank.
14. Clearing stamp required/ requires cancellation.
15. Addition to Bank’s discharge should be authenticated.
16. Cheques crossed” Account Payee Only”
17. Collecting Bank’s discharge irregular/ required.

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Transfer of funds:

A client, who has more than one account in the same branch or different branches, can transfer
funds between these accounts. In order to do that the client has to fill and palace a cheque with a
deposit slip. Then the teller checks whether the client has sufficient fund to transfer by ‘Stelar’
and if there is sufficient fund, the amount is transferred. A client can transfer maximum
Tk.50000 in this way.

Receiving cash for pay order:

Bank gets a commission for issuing pay order, etc. This commission plus the amount transferred
through PO are received in the cash section.

 Determining Daily Cash Position:

It is a regular task of this department. The daily cash position covers the day’s opening balance,
total transactions (received & paid) in local and foreign currency as well as the closing balance.

Maintaining Late Register:

When a client deposits or withdraws money after closing the cash, this transaction cannot be
posted on that very day. But the cash department may sometimes have to handle such
transactions. In a case like that, the transaction is recorded in the late register. Later, they are
recorded as transactions made in the next working day.

 Receiving GrameenPhone /Banglalink /Rankstel bills:

Bills of GrameenPhone/ Banglalink/ Rankstel bills can be deposited in the cash section. Different
deposit slips are used for different companies.

At the end of each day the whole day’s transactions are cross checked with the report generated
by ‘Stellar’ with the records of all the transaction.

Accounts Department

The importance of accounts department is very significant since the task of this department is to
ensure the correctness of all the transactions .It controls and monitors all the transactions in the
form of check and balance.

Day Beginning & Ending:

Day Beginning and Ending are software operations that are used to differentiate among
transactions of different days and record them accordingly. At the very beginning of a day, the
accounts department begins the day. At this stage, all the transactions that are entered into the
system in the previous day are processed. If all the accounts are found correct, then the previous

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day is ended and the new day is begun. Similarly that day is closed in the next day morning and a
new day is begun.

Statement Preparation:

Accounts department prepares statement on daily, weekly, monthly, quarterly, semi-annually and
annually. These statements are prepared comprising all the accounts existed in the banking
operation. All types of assets, liabilities, incomes & expenses are the components of the
statements. Asset & Liability are the items of Balance Sheet and Income & Expenditure are the
items of Profit & Loss Account. From the accounts balance statement, position of the bank in
terms of the above account can be found.

The accounts department also prepares statement for the Bangladesh Bank Statistical purpose.
Those are SBS 1, 2 & 3. SBS 1 is a monthly statement while SBS2 & 3 is sent quarterly.

Inward & Outward Bill for Collection (IBC & OBC):

Cheques of different branches of Bank Asia are presented to the cash counter. These cheques are
sent to the respective banks for collection with OBC slip attached with them for. Accounts
department performs these tasks and makes necessary entries.

General Accounts Reconciliation:

Every day, a lot of inter branch transactions take place in the form of Demand Drafts,
Telegraphic Transfers, Pay Orders etc. Such Inter-branch transactions by any particular bank
involve the general account maintained with that particular branch. To reconcile the accounts,
IBCA & IBDA are sent. Responding bank responds to those instruments and final transaction is
settled.

Check & Balance of Every Account:

This is one of the prime tasks of the accounts department to check every transaction posted in a
day. This can be performed by checking the Stellar output with the respective voucher. Error
may take different forms like error of omission, commission, cross error etc. accounts
department checks carefully those transactions and finally rectifies them. The output of every
transaction found in the Stellar in General Ledger mode. Trial Balance summary & details are
selected to get those data.

Accounts Department Related Voucher Preparation:

Generally establishment related expenditures are controlled by the accounts department.

Different types of bill payments are made through this department. The payments may be for the
house rent, plantation or office security. These payments are made in pay orders.

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Provisioning:

The accounts department keeps provisions for some expenditure & income. Interest payable,
bills payable, etc are some examples of provisioning. These provisions can be categorized as
Expense Provision & Income Provision.

Clearing Department:

Clearing house is an arrangement for the banks to mutually settle their claims over each other
arising out of deposit transfer from one bank to another by their respective customers. in the
clearing house ,all scheduled banks have  their accounts .They mutually settle their claims by
simply ‘debit and credit’ without physically transferring those funds .This is a convenient system
in the sense that it does not involve traveling and cash handling by customers. Branches of other
banks where cheques and drafts are not to be visited by the customers. Simply by depositing
those into the accounts, the customers get those collected by their banks.

Procedure:

1) An account holder of Bank Asia Ltd. Come with a cheque of another bank. He fills a deposit
slip with the cheque’s amount and places them to the teller section.

2) The cash officer verifies the cheque and deposit slip and put clearing seal of them and send
them to the clearing section.

3) The clearing officer enters the name and figures of the cheque into “Nikash” software
provided by the Bangladesh Bank) and copy it into a floppy disk. A printout of list of the
cheques is made .Then the list along with the cheques is placed to the sub manager for signing.
Then the floppy is entered into another computer and the data are loaded into the “Software” and
a list of these cheques is created. Then the cheques are sent to the clearing house.

4) In the next morning, the list generated by “Stelar” with deposit slips and debit voucher is
verified by the sub manager. Debit voucher is created on the Principal branch General A/C. In
the afternoon, the representatives of the bank come from the clearing house with honored and
dishonored cheques. Then the accounts are actually credited by “Stelar”.

Reception

There are some tuff jobs activities in the reception are like

 All phone calls are received and transfer by the receptionist.

 All kinds of inward / outward Documents are registered by the receptionist in the
different Register book, Inward, Outward, Local, and Foreign Register.
 The incoming Documents received in reception then the document is going for the
marking to the Manager or to the Sub Manager.
 So the responsibilities for all kinds of documents are to the receptionist for receive and
discharge the Documents by her Signature.

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 Credit Department:

A Department of credit in any Bank are for the maintaining all activities for the Loan System.
Bank Asia has this type of system to provide lone for the applicant. Bank Asia has a verity of
loans like home loan, Auto loan, Consumer Durable Loan, Loans for Professionals, Unsecured
personal Loan, Secured over draft etc. all the loan variation has different range of interest rates
but in a systematic range.

Foreign Trade Department:

 Functions of foreign trade:

1.      Import

2.      Export

3.      Remittance

To facilitate Export and Import, L/C (Letter of Credit) is a very commonly used financial
Instrument. First, let’s know what an L/C is:

 L/C (Letter of Credit): L/C is a promise/undertaking of a bank (Issuing Bank) on behalf of the
importer in a trade in favor of the exporter to pay a certain sum of money under some specific
terms and conditions.

So, an L/C is a negotiable instrument (A form of documentary credit) that carries a promise of
payment with the fulfillment of certain conditions. An L/C can be used in foreign trade as well as
for local payments. We can divide L/Cs into two broad categories. Those are:

a)      Revocable L/C: It is a promise of payment that can be revoked by the issuing bank. In
Bangladesh, revocable L/Cs is not used.

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b)      Irrevocable L/C: As the name implies, once such an L/C is issued, the issuer cannot revoke
the promise of payment of the value of an irrevocable L/C. In the following discussion, we shall
talk about only irrevocable L/Cs.

On the basis of types of payment, we can divide L/Cs into two major types. Those are:

a)       Sight Payment: The payment is made as soon as the L/C is presented

b)       Deferred Payment: The L/C has a maturity date after which is over, the payment is made
(Usually, the duration is 30, 60, 90, 120 or 180 days). Such an L/C is also called USANCE L/C.

Another special type of L/C is issued in Bangladesh that is called Back-to-Back (B to B) L/C
where the applicant opens an L/C against another export L/C. These B to B L/Cs are USANCE
L/Cs.

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  1. Import:

The following are the criteria that have to be fulfilled by an importer when opening an L/C for
importing:

Year Import Amount

in million USD
2016 1,824
2015 1,607
2014 1,378
2013 1,324
2012 1,196

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 1. First of all, the Importer has to be a client of the bank
2. Have to submit a formal request (Usually an application) for opening an L/C
3. Duly filled up L/C and signed L/C application form and Letter of Credit Authorization
form (LCAF) by the importer
4. Have a  Import Registration Certificate (IRC) that is renewed to the current period as well
as VAT and TIN certificate
5. Copy of Proforma Invoice/ Indent that has been accepted by the importer
6. CIB report from Bangladesh Bank that is clear.
7. Supplier’s credit report from credit rating agency or from supplier’s bank –  usually the
bank itself performs this task while the importer is required to bear the costs of obtaining
such reports
8. IMP form properly signed by the importer
9. Insurance cover note along with the money receipt
10. Charge documents as per the bank’s requirement

Now the bank calculates the required balance that the applicant will have to maintain with the
bank. The bank asks the applicant to maintain an L/C margin (A certain percentage of the total
L/C value) as a security – in other words, the risk coverage. The margin depends on the
relationship of the client with the bank, govt. policies and also on the marketability of the goods
being imported. The bank asks the applicant to maintain that certain percentage of balance at its
account with other charges like commission of .5%, VAT (15% on commission), SWIFT charge,
LCA fee & Cost for stamps (2).

When all of the above requirements/documents are submitted properly, the bank officially issues
an L/C on a bank that it has BKE with. A SWIFT message is sent to the advising bank that
includes the terms & conditions of the L/C. the other documents are sent by courier service. An
L/C contains various information from which few important fields are given below:

a.      L/C number

b.      The Importer & his Bank name (Issuing bank)
c.       The Exporter & his Bank name
d.      Value of the L/C
e.       L/C Issuing date
f.        Date of Maturity
g.      Description of Goods
h.      Revocable/Irrevocable
i.        Transshipment & Partial Shipment permitted/not permitted

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When the advising bank advises the exporter about the L/C, the exporter collects the L/C from
the advising bank paying only the advising commission. After that, the exporter prepares
documents asked in the L/C (The list of these documents is given in the lodgment part). As the
exporter gets the guarantee of payment, he/she makes arrangement to export the goods. After the
goods have been shipped, the exporter submits the complete set of documents to the negotiating
bank. The negotiating bank may be the advising bank or another bank. The negotiating bank
sends the set of documents to the issuing bank for the L/C claim.

Documents Required for Lodgment:

a.      Commercial Invoice

b.      Original Bill of Lading (B/L)

c.       Packing List

d.      Country of Origin Certificate

e.       Pre-shipment Inspection (PSI) Certificate

f.        Compliance Certificate

g.      Certificate by the Beneficiary that the goods are brand new

The L/C issuing bank carefully scrutinizes the documents that are sent by the exporter through
his/her negotiating bank. If there is no discrepancy, within 7 days of receipt of documents, the
issuing bank sends acceptance of the L/C & asks the reimbursement bank to make necessary
payment to the negotiating bank’s account. This is called PAD (Payment against Documents). If
any discrepancy is found in the documents, the negotiating bank and the importer is informed
about the discrepancies. At the same time the importer is also asked if he accepts the discrepant
documents. If there is no discrepancy in the documents or the importer agrees to accept those
discrepant documents, the bank delivers the documents to the importer upon payment in cash or
against LTR/LIM. If the Importer does not respond, then the document is retired by creating
forced LTR.

The final closing of an Import L/C is done as soon as the Bill of Entry is collected.

2. Export:

Year Export Amount

in million USD
2016 1,286

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 2015 1,135

2014 1,009

2013 890

2012 775

In the export desk, L/C is issued upon the bank for advising. When such an L/C is sent to the
bank by any issuing bank, the bank scrutinizes the documents and advises the
exporter/beneficiary.

The exporter collects the documents from the advising bank, arranges exports and then prepares
documents as per requirement in the L/C. The exporter negotiates the documents by submitting
the documents to a bank. The negotiating bank claims the export proceeds to the issuing bank
and sends the documents for acceptance. As the documents are accepted, the issuing bank asks
its reimbursement bank to make the payment to the negotiating bank as per the terms of payment
in the L/C (Instant payment for L/C at sight or deferred payment for USANCE L/C – if there is
no discrepancy). If there is a late in payment from the L/C issuing bank, the negotiating bank
reminds it of the payment in favor of the exporter.

The following are the documents that are required in an export:

1. Letter to the bank for submission of documents for negotiation

2. EXP Form
3. Commercial Invoice
4. Packing List
5. PSI Certificate
6. Bill of Lading (B/L)
7. Letter for acceptance of documents negotiated
8. Bill of Exchange
9. Scrutiny sheet for Export Documents (For internal use)

In case of an USANCE L/C, if the exporter wishes to get some financing from the upcoming L/C
payment, the bank may buy the documents as IFDBC (Inward Foreign Document Bill for
Collection).

3.     Remittance:

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The Foreign Trade department is also involved in foreign outward remittances. This Department
issues Traveler’s Cheque in favor of people who want to go abroad. There are limits for
remitting money out of the country for difference purposes. The following are some limits:

 Maximum $7000 is allowed to remit outward without declaration in one year if a person travels
by road in a country other than SAARC countries & $5000 for SAARC Countries.

 For treatment purpose, the maximum limit to remit fund with the permission of medical board’s
permission is $ 10000 through foreign DD or TT.

 Bank has recently prohibited Secured Overdraft against Bonds, and Sanchaypatra. Interest
charged on the Secured Overdraft is calculated on the basis of the security limit can be a
corporate credit or a consumer credit, even an employee house building loan or a car loan.
Whichever the credit is there are several common steps to follow for granting & recovery of a
credit when a borrower makes the first approach for a credit (Or the bank itself may go to the
borrower with the offer of a credit if the borrower seems attractive to the bank

Now is the period of innovations. There are 52 commercial banks operating in the country
excluding other non banking financial institutions. In this competitive banking arena a bank must
come up with new and easily accessible customer focused loan and Deposit products. Bank Asia
Limited offers a limited number of loan and Varity of Deposit products to its customers. Bank
Asia has been operating in the market for the last ten years starting from mid 1999 and yet to
develop new and innovative loan and Deposit products. The loan mix of the bank is very
conventional and Deposit Schemes are regular. It has been observed that the existing loan
products are insufficient to meet up the existing borrower’s need. The bank has no loan products
for the religious Muslim borrowers. It has caused the bank losing a large segment of the potential
borrowers. The bank has yet to establish credit card facility which could pull a large number of
borrowers because due to safety need, increasing number of people is being interested in having
this facility. And Also the regular and Attractive Deposit schemes for general people as
customer. Bank Asia Limited is now going in a heavy speed with other private commercial banks
in terms of product diversity in all sectors. The bank has established WAN (Wide Area Network)
to bring all the branches under online banking system. The bank can use its online system for
easy access of the customer to the loan as well as

Abstracts:

The objective is to find out the best performing commercial banks of Bangladesh. For find out
the best performing commercials banks primarily banks with higher credit rating, at least AA3,
are selected. Throughout the paper these banks are analyzed based on some key financial ratios,
like – Credit Deposit Ratio (CDR), Ratio of Classified Loan against Total Loan, Cost of Fund
(COF), Return on Investment (ROI), Return on Asset (ROA), Return on Equity (ROE), Earnings
per Share (EPS), Net Income (NI) Ratio and Credit Rating (CR). Based on the performance on
the each ratios banks are scored. Finally the raking of the banks is done by adding all the score
on each ratio.

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4.3 Organizational Behavior chat:

The transference and the understanding of meaning.

1. Control member behavior.
2. Foster motivation for what is to be done.
3. Provide a release for emotional expression.
4. Provide Information needed to make decisions.

4.4 Present Program:

1. Digital New Account Opening of Bank Asia Ltd.

2. Bank Asia Agent Banking.
3. EBEK Operation and Social Payment Department.

Where there was once delineation between banking processes that a consumer could do from the
comfort of their home or with the convenience of a Smartphone or Laptop and those that were
done in a branch office, the use of digital functionality has finally become universal. No place is
this more apparent than with the new account opening process, where features such as

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The camera phone OCR has improved both the mobile and branch account opening experience.

With 70% of likely checking account applicants saying they would prefer to submit a digital
application in 2018, it is clear that using digital functionality to improve the online, mobile and
even the branch account opening process will eventually improve the onboarding and
engagement process for new customers.

Unfortunately, there is still the challenge of abandoned new account opening processes because
of lengthy applications, unclear directions, the lack of mobile-first design and the perception that
branches have the edge when it comes to protecting personal data getting advice

Surprisingly, most banks have not responded to this revolution in digital functionality. From
hard-to-read screens to requiring signature cards and proof of identity at a branch, the process
must improve. Even more surprising, while most banks offer online account opening, less than
20% offer a truly mobile new account opening process.

Digital Account Opening focuses on the digital account opening (DAO) experience for checking
accounts, and the landscape of solutions and workflows that comprise the end-to end account
opening process. We focus primarily on account applications from new checking customers and
include both self-service solutions as well as branch-assisted processes.

This report will help banks and credit unions move forward with digital improvements to the
account opening process, removing friction, simplifying processes and providing a seamless
digital experience.

This means that with even small improvements to the application process, banks stand to see
significant increases in account openings. Below we outline the key opportunities banks have to
streamline and enhance their digital account opening process with Omni.

Website: omniaccount.bankasia-bd.com.

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4.5 VISION OF BANK ASIA LIMITED:

Bank Asia's vision is to have a poverty free Bangladesh in course of a generation in the
New millennium, reflecting the national dream. The bank’s vision is to build a society
Where human dignity and human rights receive the highest consideration along with
reduction of poverty.

MISSION OF BANK ASIA LIMITED:

 To assist in bringing high quality service to our customers
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 “Enjoying the Employee of bank Asia Institute for training development
‘learning season “

 And to participate in the growth and expansion of our national

economy.
 To set high standards of integrity and bring total satisfaction to their
clients, shareholders and employees.
 To become the most sought after bank in the country, rendering
technology driven innovative services by our dedicated team of
professionals.

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“Picture focus on the bonding of employee”

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“Picture focus on the bonding of employee”

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SWOT Analysis of Bank Asia

SWOT Analysis is a powerful tool for sizing up a firm’s:

 Internal strengths
 Internal weaknesses
 External opportunities
 External threats

Internal External
Strengths Opportunities

Internal External Threats

Weakness

Figure-8: SWOT Matrix

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 4.8.1 Internal Strength:

Training on Sustainable Development of Agent Banking in Bangladesh

Training on Sustainable Development of Agent Banking in Bangladesh

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  Place customer interest and satisfaction as first priority and provide customized banking
products and services.
 Value addition to the stakeholders through attaining excellence in banking operation.
 Maintain high ethical standard and transparency in dealings.
 Be a compliant institution through adhering to all regulatory requirements.
 Contribute significantly for the betterment of society.
 Ensure higher degree of motivation and dignified working environment for human capital
and respect optimal work-life balance.
 Committed to protect the environment and go green.

4.8.2 Internal Weaknesses:

 Quality of staff (their knowledge, willingness to help customer, soft skills, attitude)
 Banks internal policy in case of service offering, market segmentation.
 Choice of doubtful borrower in case of lending may increase the non performing loan.

4.8.3 External Opportunities:

 Large capital expenditure like Metro Rail project, Padma Bridge project will unveil new
business opportunity. Bank Asia can tap this business potential.
 For strengthening banks’ ongoing financial inclusion program me through bringing un-
banked people into the banking channel, Bangladesh Bank allowed ‘Agent Banking’ to
the country’s commercial banks. Bank Asia sees huge potential in this sector and already
started Pilot Project.
 Shipbuilding sector has been maintaining steady growth that can be considered for
financing to curb the potentials. Moreover, renowned automobile producers’ interest
regarding setting up assembly plants in local territories holds significant investment
opportunity for Bangladesh economy.
 There will be greater opportunities in power generation and renewable energy.
Agriculture and agro processing businesses also has tremendous potential where loan
should be reached.

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  Despite various obstacles, SME is one of the most promising sectors of Bangladesh in
terms of employment generation and contribution to national GDP. Bank Asia is planning
to propel this sector by financing small entrepreneur of jute products, small and medium
software companies, farming and raw leather manufacturing etc.
 Garment export to new emerging markets like Japan, South Korea, Turkey, Russia, South
Africa, Mexico etc are expanding. Bank Asia can help garment industries to grow their
export business to the emerging market.
 Export of pharmaceutical products, jute products, ceramic ware, light engineering
products, leather products, shrimp, frozen food and dry fish export to South Asia, Africa
and Europe is also a growing market. Bank Asia can tap this business potential.
 Bank Asia sees huge potential of computer software and hardware business in local
market as technology is increasingly becoming a prerequisite for business enhancement,
which is applicable to telecom banking industry, education sector, pharmaceutical and all
developing businesses.
 Bank Asia considers financing small value nonphysical exporters of software and data
entry section would be a great initiative to exploit the potential of this sector.

4.8.4 External Threats:

 Remittance business flow may go down as visa processing and other facilities are
hampered from Middle East and Malaysia in recent times.
 Slow implementation of Annual Development Plan (ADP) may hamper growth of work
order financing, Non-Funded business.
 Foreign exchange reserve may drastically go down if large capital expenditure projects
like construction of Padma bridge is built without foreign financing.
 Acute shortage of Gas and other infrastructure may hinder business growth.
 International business would be hampered if USA, European Union would take any
adverse action for pressurizing the government for further election.

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  Perceived political agitation for another general election that might again hit the business
growth.
 Reduced demand for credit resulted from sluggish business environment which ultimately
build up excess liquidity in the banking system would remain idle.
 Rapid expansion of new commercial banks would create unfair competition at the
expense of compliance issues.
 EU (European Union) may give embargo against GSP facility following the USA which
may put a sharp negative impact on the garments industry and thus overall banking
industry may suffer as garments possesses 80% value of total country export.
 The bearish trend in capital market may continue for which a huge amount of income
from margin loan cannot be realized and loss to be booked for decrease in market value
of securities.

4.6: Financial Highlights:

PERFORMANCE OF L/C FROM 2012 TO 2016:

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1200
1048
1000 910
800 767
670 690
600
400
200
0
2012 2013 2014 2015 2016

PERFORMANCE OF EXPORT FROM 2012 TO 2016 (FIGURE IN MILLION USD)

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 1135 1186
1009
890
775

2012 2013 2014 2015 2016

PERFORMANCE OF IMPORT FROM 2012 TO 2016 (FIGURE IN MILLION

USD)

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 Series 1

Series 1

2016 2015 2014 2013

Achievement of Business Target

Performance of the bank for the year 2016 was good considering the prevailing
market challenges arising from national and global financial crisis. The
performance of the bank against its target is as below:

Table-8 Achievement of business target in 2016

Particular Budget 2016 Actual 2016 Budget Achievement

Import 1650 1,824 110.54%

Export 1,200 1,286 107.16%
Remittance 550 532 96.27%

Net Profit 1450 1546 106.62%

Loans and 160500 163,610 101,93%

Advances
Deposit 182700 191273 104.69%

Figure-8: Achievement of business target in 2016

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Chapter 5: Analysis &
Findings
57

5.1 ANALYSIS:
Bank Asia’s credit mission is to actively participate in the sustainable growth and expansion of
our national economy and social development by providing credit to viable borrowers, efficiently
delivered and competitively priced. Bank Asia Ltd. is operating quiet successfully in terms of
credit management in the recent years. This year, according to the Bangladesh bank rating Bank
Asia Ltd. is in 4th position among the Private Commercial Banks of Bangladesh. But the bank
faces problems in terms of repayment and documentation of credits.

5.2 MAJOR FINDINGS:

- Day by day people aware about the online banking and also they fell important about online
transaction which increases the demand of credit card. Although Bank Asia provides this
service to their customer but for getting this card client must be deposited security more than
as how much he/she wants. This makes the customer dissatisfy on bank.

- Bank has strongly focus agricultural & agent Banking activities

- The head office centrally controls all the decision; branch has very limited power to take
decision.

- The bank’s main obstacles are regulatory burdens, new government regulations, increasing
competition from non-traditional financial institution.

- Branches have no separate recovery department. All the employees have to work on
recovery if they are assigned but exactly not by the job rotation.

- Organizational behavior studies the factors that impact individual and group behavior in
organizations and how organizations manage their environments it must be implemented
properly

- Organizational behavior provides a set of tools—theories and concepts—to understand,

analyze, describe and manage attitudes and behavior in organizations.

- The study of organizational behavior can improve and change individual, group and
organizational behavior to attain individual, group and organizational goals.

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- Organizational behavior can be analyzed at three levels: the individual, the group and the
organization as a whole. A full understanding must include an examination of behavioral
factors at each level.

Chapter 6: Recommendation & Conclusion

60

6.1 Conclusion:

From this survey I have seen that both employee and the customers are in average are satisfied.
Employees reply was most of the time either satisfactory or very satisfactory on the other hand
the customer’s questionnaire survey shows almost same result that means satisfactory or very
satisfactory. Most of the employees are satisfied with the facilities they are getting from the bank
and their service is also better as a result we have seen that the customers are happy with the
service they are getting from the employees. So it can be said that the customers are happy when
the employee are happy that means that happy employee means happy customer.

The bank knows that a satisfied employee will give better service than an unsatisfied employee
who will like to leave the job at any moment. Bank is a service oriented sector and good service
is what maters mainly in that sector. The bank should try to make sure that the statement that got
unsatisfactory point should take care of and that might give a better customer satisfaction. We
know that customers have a high expectation from a bank and in this time of rising of many new
banks will increase that much more. New bank will try to attract customers through better service
and product offerings but existing bank has their own identification.

As this survey has proved that satisfied employees will make the customers happy with the
service they provide. Few changes can take the bank into a better position than it is now. In this
competitive market it is very important to make sure that the customers are happy and we know
that through making the employees happy this target can be achieved and there is very few
chance of turnover of employee when the employees are happy in the job. This is why bank
should try to make the employees happy for the sake of the business itself.

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6.2 Recommendation:

 We have seen in the employee satisfaction survey of behavior that most of the time the
employees replied that they are satisfied or very satisfied but there are some issue of not
satisfactory The employees think that they will do better in other post within the bank that means
that a job rotation may be a god solution for that.

 the main problem that caught my eye was the lacking of good relation among the
departments. The employee has good relationship among their own department but they don’t
have that with the employees of other departments. It should be solved immediately as most of
the work of bank is related with inter departmental works. If there is lack of god relation among
the department then it is harmful for the bank. In many case we have seen that competitiveness
has made a god result in the business but sometime it creates havoc for the organization. My
recommendation will be to make the relationship a god one as it is related with the satisfaction of
the customers.
 From the customers survey I have seen that they have a high expectation from the bank. The
bank has promised many things to them but now the service is not that fast as before. Most of the
customers think that the bank is not giving them the preference they got before. It is happening
because of the extension of the customer base. When the bank got popular more and more clients
came the bank as a result workload increased in the bank but the employees didn’t increased as it
should as a result the service got slow then it was before. The solution of this problem is very
easy increase of officers and messengers in the bank so that the service remains fast enough to
satisfy the need of the customers.

There is some other recommendation I would like to offer those are:

 Handling the customers with smiling face. Having lots of pressures of tasks the officials
fails to handle customer with smiling face all the time. If customers find the officials of
customer care always in smiling face, then they will feel good to take the service and
whatever the performance, they will be happy to come to this bank more and more.

 Maintaining a good customer relationship. Some officials of customer care don’t

maintain good customer relationship. They just only try to do their respective task
nothing else. If customer relationship is maintained by the officials, then customer will be
happy towards the service of bank and they will try to get the service of Bank Asia
frequently.

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  Take each customer with greater importance. In some cases, it is seen that, higher valued customer
treated differently in front of other customers. Customer should not feel that, other customers are
getting more importance than him. It can create a negative impression in the mind of the
customer.

 Improving Software System: The software (staler) that is use to do daily works sometimes
does not work properly. As a result customer of any department of the branch is not served
on time, the organization need to improve its software system to have more customer
satisfaction.

 Promotional Activities: The organization is not into promotional activities. They need to do
some promotional activities so that people come to know about them. This will help to
increase their number of customers

 Motivating the employees. If the employees of the bank are not motivated than the performance
of Bank Asia limited will never been expect well. Most of them are seen of being depressed due
to over time work in bank. That’s why to full-fill the mission of the Bank Asia, employees of the
bank should be motivated. For motivating the employees Bank Asia should arrange award
ceremony for the employees where the award will be given to the employees of the Bank, Such as
Employee of the month.

 Employee should be trained in a manner so that they can give the fast service toward their
customer. Sometimes it is seen that, customer has to wait for some time because only one official
can handle that particular matter. It can create problem for the mage of the bank. So it can arrange
employee training program or seminar for teaching the employee how to give the fast service
toward the customer.

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  Prepare the transaction profile with proper discussion. Transaction profile sometimes
creates problem in transaction for the customers. So, the officials of Customer care
should be more careful while creating the transaction profile at the time of account
opening.

 Set up more ATM booths. Bank Asia should set up more ATM booth for its clients, so
that customers can easily make transaction through ATM network, and at that time using
of Cheque will be reduced toward individual customers.

 Recruiting experienced employees. Inexperienced employees need many times to serve

the customers regarding their services. More experienced employees should be recruited
to look into customers’ problems and give them immediate solutions without time
intervention.

 Should set up a call center for receiving phone calls. The customer service department
should give away the call receiving responsibility to the call center department as it takes
away the valuable time of the customers standing in line and make them wait for long
hours.

 Extra charges should be notified earlier. The customers are not told about the extra
charges if they don’t ask. The extra charges that are made by the bank from the customers
should be clearly informed to them before hand so that they don’t panic afterwards.

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BIBLIOGRAPHY:

Annual Report of Bank Asia Limited, 2016

Annual Report of Bank Asia Limited, 2015
Annual Report of Bank Asia Limited, 2014
Credit Risk Management Manual of Bank Asia Limited, 2016
Credit Risk Definition and Clarification Manual of Bank Asia Limited, 2015
Service and price guide of Bank Asia Limited, 2016
Operational manual guide-2016/17
Foreign Exchange Guide Line volume-I & II-2016
Bank Asia Limited Website www.bankasia-bd.com.

Data collect from Google

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