Wednesday 27 May 2020

Banks started reducing salary and cutting job due to effect of Covid-19

Corona virus hits profitability of Banking sector severely even some banks could not bear administrative expenses. As a result banks has started reduction of employees salary and cutting jobs as well. We have news that AB Bank Ltd. has already reduced salary of the employee by 3% to 5% and Mutual Trust Bank also thinking to do the same. 

Probable Corona Virus effect on Banks/Financial Institutions

1. Reduction of profit margin even some medium and week bank may start incurring loss
2. Sharp increase of Non Performing Loan as Corona Virus hits every sector of the business which leads borrowers non capable to serve the debt.
3. Banks/Financial Institution will face difficulties to bear operational expenses and will be compelled to reduce salary of the employees even may reduce employee as well.
4. May face liquidity crisis in near future.

Friday 15 May 2020

Bank Job prospects in Bangladesh / Banking as a Career, key factors to consider

When anyone wants to do a Bank job or want to develop his career in banking and financial industries following factors must to consider:

What is Bank: Before choosing a bank job one should know about the bank. Simply, Bank is a financial intermediary between a surplus unit of fund and a deficit unit of fund in the society i.e. it take/borrow money from some people and lends money to others. Main profit of the Conventional Bank generate from spread between lending interest income and deposit interest expenses. Besides, modern Banks doing some other fee based activities like issuing LCs/Guarantees, custodian and security service. 

In Bangladesh there are two types of Banks operating: 
    1. Islamic Sharia Based Banking System 
    2. Conventional Interest Based Banking System

Educational Requirements for Bank Job in Bangladesh:
Graduation/posts graduation degree from any reputed university is generally asking educational requirement for having a bank job. But, for entering accelerated career as Management Trainee of relevant post applicant must have BBA/MBA degree from top rated university of Bangladesh and have to face several steps of examination like written examination and viva voices.

Good things of a Bank Job:

Handsome initial salary: Banks are generally providing handsome amount of salary from starting. Besides, Banks also provide incentives on profit to the employee based on the business performance.

Good Corporate Governance: In Bangladesh Banking sector is strictly regulated by the Bangladesh Bank, the Central Bank of Bangladesh. As such, compare to other industry corporate governance better,

Excellent Work Environment: Work environment in banking industry is very good. well skilled personnel, Air Conditioned and well decorated.

Bad things about a Bank Job:

Religious view point: Job in conventional interest based bank is prohibited by Islami Sharia as in Islam Interest is strictly prohibited and declared as one of the great sin. So, most of the muslim banker after doing 7/8 years service when realized about the fact wants to switch the job to other industries or to islamic sharia based banks but, it is very difficult to do. So every muslim should think a lot before taking a job in a conventional interest based bank. It will also create mental pressure on them.

More work pressure: In Banking job work pressure is normally very high and it build mental pressure which will eventually effect family life. Most of the private bank employee usually get ready for work between 7.30 to 8.00 am and return home at around 9 pm. Besides, banker have to face unusual business target i.e. deposit, lending, fee income, card sale etc.
      

Wednesday 13 May 2020

Top Five Private Commercial Banks in Bangladesh

Based on Brand Image, Market Impression, Asset Quality, Corporate Governance, Customer Service, public trust and international acceptance it appears that Top Five (5) Local Private Commercial Banks in Bangladesh are:

  1. Eastern Bank Ltd. - www.ebl.com.bd
  2. The City Bank Ltd. - www.thecitybank.com
  3. BRAC Bank Ltd. -www.bracbank.com
  4. Islami Bank Bangladesh Ltd.-www.islamibankbd.com
  5. Bank Asia Ltd.- www.bankasia-bd.com

Friday 1 May 2020

General Required Documents for opening a Bank Account in Bangladesh.

To open account in the name of individual:

  1. 2 copy of photographs of the account holder
  2. 1 copy of photograph of the nominee
  3. Copy of National ID Card
  4. Tax Identification Number (TIN) Certificate
  5. Copy of utility bill for address verification.


To open account in the name of proprietorship concern.
  1. 2 copy of photograph of the proprietor
  2. 1 copy of photograph of the nominee
  3. Copy of National ID card of the proprietor.
  4. Trade License
  5. TIN Certificate


To open account in the name of the partnership concern
  1. 2 copy of photograph of the partners
  2. 1 copy of photograph of the nominee
  3. Copy of National ID card of all the partners
  4. Trade License
  5. TIN Certificate
  6. Partnership Deed 
  7. Partnership Registration Certificate from RJSC.
To open account in the name of Limited Liability Company:
  1. 2 copy of photograph of the authorized representatives of the company.
  2. Board Resolution of the company for opening Bank Account.
  3. 1 copy of photograph of the nominee
  4. Copy of National ID card of all the representatives and directors of the company
  5. Memorandum and Articles of the company.
  6. Trade License
  7. TIN Certificate
  8. Registration Certificate from RJSC.



ONE Bank Ltd. Restored Salary of Employees effective from 1st January 2021

Salary/Benefits of ONE Bank Ltd. reverted back to its original amount before cutting the salary benefit in the year 2020. Due adverse affect...