The holistic marketing concept, as applied in the business today, encompasses financial performances blendedwith proper accountability, ethical practices and most importantly socially responsible behavior of all stakeholdersof a business. The society for that matter is the biggest of all stakeholders. Study shows that the companiesadhering to CSR are performing better.

CSR in its current form is being used widely as a tool for creating brand image having positive impact in the mindof the consumers. There has been a clear trend towards integration of social and environmental objectives withthe economic objectives. We cannot ignore our responsibility towards the society whose legitimate resources weare using up – the natural resource, the human resource, the infrastructure, etc. So, a long term business motivefor the organization is to develop frameworks those encompass the explicit and the implicit components of thesocial contract. This does not amount to philanthropy nor it is contrary to the very purpose of business.

In the age of growing inter-dependence, there is little scope for anything that stands alone. Businessorganizations should try to understand the ever-changing social contract to ensure sustainable growth. It isbelieved that sustainability of an organization mainly depends on its visualization of the future and on therealization that CSR will continue gaining momentum in the days to come.

Prime Bank Limited supports the concept of triple bottom line approach in CSR: good economic performance,good social practice and good environmental practice to that end. Prime Bank Limited established Prime BankFoundation (PBF) as an independent entity separate from the Bank. PBF came into being with the nobleobjectives of capturing various dimensions of CSR with special focus on education and healthcare for the havenot classes of the society.

PBF provides financial support to the underprivileged but meritorious students for persuasion of their studies upto post-graduation level. PBF has set up an english medium school “Prime Campus” at Uttara, Dhaka, in 2008to make the high standard english medium education accessible to the meritorious but deprived students. Mostrecently, PBF has undertaken an initiative to set up an Eye Hospital for extending eye treatment facilities tothe needy.

The consumers today are more conscious and apply their precious judgment in selecting their service providers.Thus we find a fundamental change in the way the consumers think and act in choosing their products andservices. The consumers want to know the value, ethical standard, tangibles etc. demonstrated by thecompanies. They are also careful and sensitive about the way the companies treat the employees as well as thecommunity in which the companies operate their businesses. As such, it is imperative on the part of thecompanies to strike the balance between profitability and social sensitivity. To that end, Prime Bank Limited isintegrating social responsibility into its operations.

Prime Magazine started its journey to create a platform to inculcate creative ideas, share and exchange viewsby developing triangular relationship among corporate sector, regulatory bodies and the universities. I expressmy deep gratitude to those who have their direct and indirect supports to make our initiative a success.

Md. Tabarak Hossain BhuiyanSenior Executive Vice President Head of Marketing, Prime Bank LimitedEditor Prime Magazine.

Disclaimer: This magazine has been prepared by the Marketing Division of Prime Bank Limited (”PBL”) for the benefit anduse of the readers. The magazine is proprietary to PBL and readers are allowed to disseminate it in unabridged and originalform and reference should be made while quoting the magazine. Preparing this magazine, we have relied upon andassumed, without independent verifications, the accuracy and completeness of all information available from public sourcesor which was provided to us by or on behalf of the source of information cited in the magazine. We do not accept anyobligation arising out of any decision made from the contents of this magazine.

From the Desk of the Editor

Ta

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03 PBL Exchange (UK) Ltd. A Big Step toward Internationalization

04 11Cs for better Credit Analysis

07 Market Research by Your Own

10 Marketing and Business Development Initiative in Canada

12 Some Thoughts from Stock Market

14 Economic Indicators During FY 2009-2010

16 CSR Seen Through Prime Bank Foundation Lens

17 Money as a Motivational Factor for Employees at Developing Countries

21 Inclusive Banking: A Means for Sustainable Development

25 CRM: Indispensable but Unexplored Dimension of Retail Business

29 Photo Album

03

PBL Exchange (UK) Ltd.A Big Step Toward Internationalization

In the 20th century, Globalization and Technology bothhave made the world smaller than ever as well as offeredplenty of opportunities to diversify businesses. The talentand global attitude of Bangladeshi people have made themone of the most competent international communitiesaround the world. The huge population of Bangladesh isnow spreading around the Globe and utilizing its talentsonly to supplement our economy. London is the home of the biggest Bengali communityoutside Bangladesh and West Bengal, India. Approximately600,000 Bangladeshis live in Britain as per official data.compared to other immigrant communities, Bangladeshis inBritain are regarded as a high net-worth population. Theirmain business, restaurants contribute to some £4.3 billionannually to British economy. Moreover, NRBs in fiscal2009-2010 have sent US$827.51 million in Bangladesh.Prime Bank Limited is adding a dimension to its successstory just making an effective use of technology andjudgment through the inauguration of PBL Exchange (UK)Ltd. in August 2010 with three branches concurrently inthree major cities of Britain - London, Birmingham andOldham. situated in excellent locations that are frequentpassageway of Bangladeshis in the UK. Interior of thebranches in UK are as attractive as our branches inBangladesh. PBL Exchange (UK) Ltd. is committed to deliver remittancefrom NRBs in UK to every corner of Bangladesh rapidlywith the best competitive exchange rate. With a view toelevating its performance to the standard of the globalfinancial organizations and internationalizing bankingoperations, this footstep of PBL would also act as a catalystin accelerating the socio-economic development ofBangladesh. PBL Exchange will facilitate financial inclusionof expatriate Bangladeshi with their family living inBangladesh. Strong IT platform powered by “RemitFast”,remittance software developed by Bank’s own IT team hasbeen implemented from the day one. A team of officialshave been recruited, having experience and talents, aftercareful screening. The officials were given training by aBritish expert on Anti Money-Laundering and UKRegulations in addition to simulated training beforeprocessing live transactions. Before commercial operation, a month long campaign hadbeen carried out in popular local print and electronic mediahaving wide viewership. Leaflets and Flyers were alsodistributed by officials of PBL Exchange in major mosqueson Fridays till opening of the Exchanges. The presence ofthe Bank led by the Chairman in the live TV discussion inUK was appraised by all and carried a positive impressionon PBL Exchange in UK. PBL Exchange (UK) Ltd. is the second fully ownedExchange House of Prime Bank Limited, while PrimeExchange Co. Pte. Ltd. was established in Singapore in2006, as the first fully owned Exchange Company of PrimeBank Limited and the first ever fully owned ExchangeCompany in Singapore by any private Commercial Bank ofBangladesh. A series of dates is very important here in the history of PBLExchange (UK) Ltd. After an extensive period ofbrainstorming and persuasion, we obtained approval from

Bangladesh Bank on 25th August 2009 for establishingPBL Exchange (UK) Ltd. Soon it was incorporated withCompanies House of England and Wales underregistration#7081093 on 19th November 2009. PBLExchange (UK) Ltd. obtained money laundering registrationon 13th April, 2010 issued by HM Customs and Excise andit got registration of Financial Services Authority of UK on14th May 2010. Finally the grand opening of PBL Exchange(UK) Ltd. was held on 2nd, 3rd and 4th of August, 2010.

ServicesPBL Exchange (UK) Ltd. offers easiest ways to NRBs toremit money round the clock connected through our simplecollection and payment mechanism.Remittance Collection: Now our customers can remitmoney from UK to their Friends and Family residing inBangladesh through any of the following three Simplemodes:Cash Deposit: Cash can be deposited to any of the threebranches of PBL Exchange (UK) Ltd for remitting money tothe ones residing in Bangladesh. Information of remitterand beneficiary require to be duly provided prior to availremittance service.Account Transfer: Customers can also send remittanceby transferring money to our bank account and provide usremittance details by fax, phone or email. Internet/Online: Listed members of PBL Exchange (UK)Ltd. may send remittances using internet/mobile.Remittance Disbursement: The near and dear ones of theremitters in UK can easily collect the money from any of thebranches of Prime Bank, as well as any other banks orbranches of BURO Bangladesh. Our promise is to deliverhassle-free One Stop Service. The remittance collectionmodes are following -Instant Cash: Instant cash payment may be received fromany of the 88 branches of Prime Bank, all of which areinterconnected through State of Art real time online bankingsystem. Over the counter cash payment may also be received fromthe widespread network of 500+ branches of BUROBangladesh.Account Credit: If beneficiary maintain an account withPrime Bank, remitted money will be credited instantly tothat account. This money can be withdrawn from anybranch within the banking hour or anytime from 900+ ATMbooths of Prime Bank and peer banks.Furthermore, account maintained with any other banksinside Bangladesh may be credited quickly through TT &Pay Order.Prime Bank is looking forward to extending and growingfurther through adding more flair to its performance both indomestic and international market.

Compiled by:International DivisionPrime Bank Limited

04

Loan default is a universal phenomenon associated with alltypes of business enterprises. However, loan default incase of banks has special significance because extendingof credit is almost the exclusive business of bankinginstitutions. Naturally magnitude of loan default largelydetermines the destiny of a bank. So, its importance isabsolute for the very existence of a bank. As banks dealwith other people’s money, quick recovery of loans is one ofthe most important factors that banks make commerciallyviable. Investors and entrepreneurs may default in paying theirloans for various reasons. Some of the reasons are asfollows:n When an entrepreneur takes up any project, he/she

makes a project profile. The main goals, objectives andthe cost of production are set out there. Likewise, theimporters are also required to submit their projectprofile showing therein the proposed rate of profit to theBank for the purpose of obtaining the loan. Here, it isseen that some entrepreneurs prepare over invoicedproposals in their bids for extra money from the banksfor personal gain.

n Some industries turn sick despite getting adequateloans from banks. The main reasons for this are weakmanagement, wrong recruitment and administration ofthe standard of the commodity and not followingcorrect marketing procedures.

n Inadequate prudential regulation and weak supervisionis a recipe for banking problem i.e. creating non-performing assets.

n Poor prudential regulation and supervision are madeall the worse by an inadequate legal framework.

n Banks are not the only problem in the financial sector.Capital market is small and do not offer a competitivealternative bank borrowing.

n Many of the classified loans are directive loans whichactually given by influence. For any influence, thebanks have to lend money to projects withoutexamining their economic viability.

n Ignorance of knowledge for proper analyzing of loanproposal by credit officers.

n Negligence of the credit officers. Many credit officersdo not perform his/her assignment sincerely despitegetting all possible information about the respectivecredit.

n Connivance of the Bank personnel with the borrower.

The recovery in fact starts from the selection of borrower.When a loan applicant approaches a loan officer’s/creditofficer’s desk or calls over telephone for a loan, then he/shehas to look upon each loan request as a challenge and anopportunity, not as a chore. It is well known that banks have pressing problems owingto bad credits in Bangladesh. To improve the credit portfoliobetter credit analysis is essential. Through good creditanalysis, we can reduce the volume of bad or classifiedloans and it helps to form a good economic infrastructurefor any country. In this article, it has been emphasized upon5 C’s for good credit and 5 C’s for bad credit and other 1Cfor good and bad credit which can be used as a lending toolfor any credit officer.

First, lenders must know the Cs of good credit. These Csare the tried and true rules of good loan making’ consistingof Character, Capacity, Condition, Capital and Collateral.These traditional five Cs make the core of soundcommercial loan making. However, first of all after allanalysis we have to believe that credit will be good and itwill be refunded as per schedule. As we know that the word“credit” comes from the Latin word “credere”, which means"to believe" or "to entrust".

CharacterCharacter refers to the likelihood that a credit customer willtry to repay the debt. This factor is of considerableimportance because every credit transaction implies apromise to pay. The principal question is: Will the firm(borrower) make an honest effort to pay the debt, of is itlikely to try to get away with something? Experienced creditmanagers frequently insist that the moral character of aborrower is the most important issue in a credit evaluation.Thus, credit reports/trade checking is used to providebackground information on past performances, both forbusinesses and for individuals. Credit analysts determine afirm’s credit reputation by talking with the bankers, itssuppliers, its customers, and even its competitors. CIBreport to be collected from Bangladesh Bank and othersBank report to be collected. No matter how character isdetermined, it is clear that credit history (reputation) isextremely important in determining whether credit will begranted – both business and individuals should strive tomaintain good credit reputations. Trade checking andvarious tools of market intelligence are used in this case.

CapitalCapital is measured by the general financial condition of aborrower as indicated by an analysis of financialstatements. The lender will make sure that the company orthe person borrowing money is adequately capitalized.Here, capital means net worth of the business. Thisprovides a caution for any loss that may occur and helps tokeep the bank from ending up in bankruptcy and courthaggling over the remains of a dead company. Specialemphasis is given to the risk ratios such as the debt/assetratio, the current ratio, and the times-interest-earned ratio.

11Cs for Better Credit Analysis

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CapacityCapacity is the subjective judgment of a customer’s abilityto pay. Capacity is a measure of the ability of the creditcustomer to generate cash sufficient to service the debt.Therefore, evaluation of this factor is based primarily on thecash income received by the borrower (business orindividual). It is gauged in part by the customer’s pastrecord and business methods, and, for a firm, it might besupplemented by physical observation of the firm’s plantsor stores. Again, credit analysts will obtain judgmentalinformation on this factor from a variety of sources.

CollateralThe borrower might offer assets as security in order toobtain credit represent collateral. “The lender will makesure that collateral does not drive the lending decisions.”Especially, for large loans or long-term loans the lendermay require some type of collateral. If the borrower fails tolive up to the terms of the credit agreement the collateralcan be sold to satisfy the debt. As per experts opinion,collateral is the last resort for any credit officer.

ConditionsConditions refer both to general economic trends and tospecial developments in certain geographic regions orsectors of the economy that might affect the borrower'sability to meet its obligations. Some firms perform verypoorly during economic downturns, so creditors need toexercise greater caution when lending to such firms duringpoor economic periods.These traditional Cs of credit should be thought of ascommandants: Do this, check this, and look for that. Theserules have worked fairly well in the past, but in recent years,bankers have learnt a few more Cs: Complacency,Carelessness, Communication, Contingencies andCompetition. The five things of bad credit to guard againstthe lessons learnt from the most recent lending mistakes.

ComplacencyThis is one of the most important lessons to be drawn fromthe past few years and is to guard against complacency.Many bankers have said something like, “I don’t need toworry about that borrower, he has always paid us on time”-that is obviously an incorrect assumption. Three things caninfluence to make complacency. First, over reliance onguarantors has been a problem. Bankers who acceptedthose “solid” personal guarantees are creating worseningconditions. Second, overemphasis on past performances isanother concern. The old adage that past success is verytrue. But it was ignored. Third, over reliance on large networth is yet another concern. This is simply “good old boy”lending.

CommunicationA communication breakdown is a simple problem, but it caneasily destroy a whole bank. Poor communication, up anddown the line, is deadly. For up standard thecommunication system a lender must concern about creditquality objectives and upward communication system.Credit quality can be judged through various informationsoftware in this modern IT era. So, IT knowledge is verymuch essential for all credit officers. Without IT knowledge,it is not possible to communicate properly for better

judgment of credit proposal in this 21st century which iscalled “the century of technology”.

CarelessnessThe second rule of bad credit, or mistake to be learnt fromis, carelessness. It was easy to say, “Don’t worry about theloan documentation. I will get later.” There are a lot of loanswith improper documentation, incomplete of conditionsprecedents (CPs), incomplete financials and inadequateloan appraisal and no one knows where to find theinformation because the officer responsible is no longerworking for the bank and it is all because someone wascareless. A lender must be aware of the following facts:• Lack of current financial information (minimum 3 years

audited financial statement).• Personal Net-worth statement.• Lack of protective loan instruments.• Information not kept in files.

ContingenciesMany bankers may think that they are the brightestfinanciers, but no one looked at what would happen to hisor her loan if the economy slowed down. Bankers aresupposed to look at every bad thing that may happen andthen decide how likely it is that and of those things willhappen.

CompetitionCompetition is probably the most important of five C’s ofbad credit. Bankers decided to win the business decide towin the business. Unfortunately, that meant making his orher credit standard as loose as or looser that everyoneelse’s. The Banker must think how his/her product can besold to the consumers and consumers will buy only thisBank’s product not another Bank’s (competitor) products.

Last C: Co-operation

This C can solve all the problems of bad Cs. This is Co-operation. Co-operation from and to each other both lenderand borrower which may drive any credit facility the goodand bad credit also. A lender must remember that he/she isnot only a lender but also a consultant/guardian of theborrower. And a bank is not also lender but also a financialpartner. So, a hand of co - operation to increased to the

06

borrower any time to the borrower when it is necessary.Moreover, as a Project Financier, it has to remember thatmanaging a project is more difficult than trade financing. Itis very difficult to generate sufficient cash flow from theproject to meet its debt obligation during the early stage ofthe project. As such, in every project financiers need toextend their utmost co-operation even determininginstallment sizes to make the project a successful one onlyafter making detailed analysis of all the aspect properly.

By co-operation attitude, a credit officer must understandthe business cycle of the borrower. Credit officer will talk tothe customer in co-operation minded. A lender shouldunderstand that without co-operation monitoring on thecredit is not possible. As a lending officer he must keep avigilant eye on the project i.e. when a project could bestarted and how much fund is necessary for this purpose.So, where the better co-operation there will be the

customer. But it should remind that co-operation will not bethe customer’s interest only but also the Bank’s interest ashere all the depositors’ money.

Md. Touhidul Alam KhanExecutive Vice President, Prime Bank Limited, Corporate Banking Division, Head Office

Guidelines for Contributors

1. The main areas of focus of the articles/features will include: a. Current Economic Trend (Local & Global)b. Monetary Policy and Fiscal Policy.c. Foreign Remittance.d. HR Development in Banking Industries.e. Marketing and Sales in Services Sector.f. Corporate Social Responsibilities.g. Corporate Governance.h. Success Stories of National Importance.i. Corporate and Strategic Management Affairs.

2. Please email us your articles/features at the following addresses:To: ferdousi@primebank.com.bd – Ferdousi Sultana, SVPCc: ak012803@primebank.com.bd – ASM Sabbir Hossein Khan, Officerfk031003@primebank.com.bd – Farzana Khan, MTss031001@primebank.com.bd – Shaikh Mehdi Siddiquee, MT

3. Individual authors will be held responsible for any kind of plagiarism.

4. Authors taking help from any journal, magazine, book, etc. they must refer them as appropriate in theirarticles/features.

5. The authors of the selected articles/features will be given an honorarium of Tk. 2000/- (Two Thousand Only).

6. The write up should be formatted adhering to the followings:a. Font Size-13b. Font Type-New Times Roman (Normal)c. Paper Size-A4d. Write-up size – Maximum 10 pages.

e. The ideal ‘Service Level Writing Standard’ will be highly appreciated.

7. Articles/Features once published in any newspapers, journals, magazines, books and any other media shouldnot be sent as a write-up which won’t be accepted to republish in the magazine.

07

Market Research by Your Own

It's crucial to analyze your market and target your clientelebefore you waste money on advertising that won't get youthe results you want. Market research is also critical beforeyou spend time and money developing a new product orservice.I'm always amazed at the number of business people whojust seem to do whatever they feel like doing - withoutbothering to do any market research at all. Some business owners just become personally enamoredwith some ideas of their own and decide to sell thembecause they liked them. I like lots of things, and I believemy ideas would work promoting my product/s. But thatdoesn't mean that investing my time and money to sellthem to other people is a good idea. Investing time andmoney in market research instead can save you a lot ofgrief.

Conducting market research essentially means gatheringthe information you need to make decisions about yourbusiness. Market research is the systematic gathering,recording, and analyzing data relevant to selling the goodsand/or services you produce.

There are a great many companies out there that will beglad to conduct paid market research for you. InBangladesh, for example, companies like GrameenPhone,Unilever, Prothom Alo, BATA, etc. are very frequent inconducting market research for their products and services.This is one of the significant reasons why they alwaysenable themselves in the customers’ Top of Mind (ToM). If,like many small business owners, hiring a company to domarket research isn't in your budget, this article outlineshow you can do your own market research, including tipsfor designing your own market research surveys andquestionnaires.

Market Research GridDoing your own market research isn't difficult, although itdoes tend to be time consuming. If you own a smallbusiness, you're probably researching your marketscontinually, informally. Every time you talk to a customerabout what he or she wants, or chat with a supplier or salesrep, you're conducting market research. In a sense, yourcustomer service division is the biggest source of yourinternal market research team.

But more formal market research is also necessary to keepyour business vital and growing. I think of market researchas a grid.

customer competition environment

primary

secondary

The Market Research Grid shows the two types of datasources and the three areas of research that are importantto any business. You need to gather information from and

about your customers to focus your marketing efforts,maintain and improve your customer service, and to guideyour efforts in developing new products and/or services.

Looking at the Market Research Grid, information gatheredabout the competition can help you determine what worksand what hasn't worked, give you ideas for improving yourproducts and/or services, and provide insight into how toincrease or shift your share of the market.

The environment section of the Market Research Gridrefers to those economic, social, and political forces thatshape business. Gathering information about theenvironment allows you to stay abreast of and respond toparticular trends or events that impact your small business.Whether it's a predicted drop in interest rates, or the closureof a local mill, you need to be aware of it and judge theripple effect on your business, for good or ill.

Think of secondary data sources as market research datathat's already been collected by someone else. Telephonebooks, government publications, and sources such asstatistics calendar, trade journals, and surveys conductedby other companies are all examples of information that'salready been gathered that you can use to get a fix on whatyour customers want, what the competition has done, andwhat the environment is like.

Primary sources provide firsthand information. When yousurvey your customers or question the competition, you'regathering information directly from the source. While thiskind of market research data can be the most costly andtime-consuming to gather, it can also be the most valuable,because it's the most current and the most specific.

Let's look at how you can use this grid to do your ownmarket research. Keeping the grid in mind will help you stayorganized when you're doing your own market research.

The first step in market research is to frame the question orquestions you want answers to. Suppose, for instance, thatyou already run a successful retail business selling windowcoverings (curtains, drapes, etc.). You’re wondering aboutadding a blind and drape cleaning service to your business.So your market research question is, is a blind and drapecleaning service viable?

Through monitoring business trends (reading as manymagazine, newspaper, online, and trade journal articles aspossible related to business), you know that consumers areincreasingly concerned about recycling and reusing. Andyou've been watching local businesses find success sellingused goods, from computers through vintage clothing. Yourmonitoring of the environment tells you that people may bemore interested in doing something with their old blinds anddrapes instead of buying new ones.

For a market research question of this nature, the first areayou would research is the competition. Let's suppose thatthere are three other window covering businesses in town.You can call them and ask them if they supply this service.

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If they do, you'll find out as many details as possible. Justbecause someone else offers the service, doesn'tnecessarily mean that you shouldn't; it just means you'llhave to carefully consider issues such as market share andpositioning.

The bulk of your market research will be consumer based.You'd start with a market research survey of your currentcustomers, focused on whether or not they would beinterested in such a service. This could be as simple asasking everyone who came into the store, or as formal as aquestionnaire. If the response was positive according to thecriteria you had set, you would move on to telephoneinterviews with randomly selected members of yourtargeted population. If these were positive, you mightproceed to more in-depth market research surveyinterviews with selected respondents.

As you proceed, your research needs to become morespecific. Your first market research survey might be assimple as, "Would you be interested in a drape and/orcurtain cleaning service?" But if indications are positive,you need to know a lot more than just whether or notcustomers are interested.

For example, you might ask how many times a year thesurvey respondent would use such a service, or how muchhe or she would be willing to pay to have his or her drapesand curtains cleaned. Generally, the more detailed andspecific the information you gather in your market research,the more useful it will be for making a decision.

Some Tips for Getting the Most out of Market Researchwhen You're Doing it Yourself

When you're doing your own market research, there aresome things you should keep in mind.

1. Your information will only be as good as your marketresearch sample: Be careful when selecting your marketresearch sample group to question. To get useful marketresearch data, your sample group needs to be relevant toand representative of your target population. Notice thatjust asking people in the store isn't good enough. Some ofthem will say "Yes" just because they like you or don't wantto offend you. Informal market research is always tainted toa degree by the relationships of the people involved.

2. Design your survey or market researchquestionnaire carefully: Make sure that it's focusedspecifically on the information you need to know, and thatyou haven't included any questions that may offendanyone. Many people are put off by questions that ask themhow much money they earn, for instance. If you offend orconfuse them, they won't bother to fill out your marketresearch survey.

3. Keep your survey or market research questionnairefairly short: If possible, your market research survey orquestionnaire should all fit on one page. Some people areintimidated by long forms; others see multiple page formsas just too much of an imposition on their time.

4. Always provide some opportunity for detailedanswers: Not everyone will take advantage of it, but somewill, and sometimes these written-in comments are themost valuable of all.

5. Work out your market research recording techniquesfirst: Telephone market research surveys are popular, buthow are you going to record what the respondents say? Ifyou're orally interviewing someone, will you record them ortake notes? The purpose of market research is to gatherand analyze the data, so you've got to have a system ofrecording the data worked out in advance.

6. Set the criteria for the information beforehand:Market research is a process, which may shut down or beredirected at any time. Before you ask your customersanything, you need to have the market research processclear in your mind. How many customers would have toexpress an interest in the service to make it worth while tocontinue researching the possibility? Set the marketresearch criteria beforehand, as in, "at least 50 percent ofcustomers need to show an interest in a curtain and drapecleaning service or there's no point in moving to the nextstage of your market research".

The amount of market research you do is limited only byyour time (if you're doing it yourself) or your budget (if youhire someone else to do it). But market research isnecessary at all stages of a business's life, if you wantcontinued success. Only market research can truly keep usin touch with what's most important - our customers, andtheir needs and desires.

Why Research is so Importanta. Research can perfect products: While conducting aresearch you come across different types and segments ofcustomers with different tastes and talents. So its feasiblethat you get different useful ideas about your products(product design, quality, taste, even packaging design,etc.). Sometimes you get more out of a research than whatyou were conducting it for. This makes your product moreperfect; thus more suited for the target market.

b. Research can deepen relationships: Whatever thesize of your company, you’ll find that research strengthensthe bonds between your company and its customers. Thebottom line is: people like it when you ask for their opinion.Not only will they feel they are contributing to yourcompany’s success, but you’ll learn more about theirperceptions of:

• Your company identity

• Your competitors

• New markets and products for your company

Research firm TARP has found that for every person thatcomplains, 26 others don’t. So, if 10 customers havecomplained recently to your company, another 260 mayhave held their tongues while turning to your competitors.Properly conducted research many times acts as afeedback machine designed to root out these people’sthoughts.

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Other Important Research Payoffs

• Research can re-establish dialogues with long-lostcustomers: Sometimes a survey is all that is needed toreestablish a dialogue between a company and acustomer that feels ignored.

• Research gives people a chance to vent: Sometimespeople just want to air out their feelings. This doesn’tmean they will abandon you or your company. To thecontrary, they may respect you more for giving them thechance.

• Research can find new growth opportunities rightunder your nose: Customers might give you growthideas about which you’ve never thought of.

• Research can increase awareness of ancillaryproducts: Good surveys not only collect data, butdisseminate information. As long as it is handledtastefully, you can educate consumers about yourcompany’s new products or services with a survey.

• Research can help you design business generationcampaigns: Through research you get to know thegaps in the market where you can penetrate with yourproducts or services. Therefore, it gives you theopportunity to tap the untapped market faster and wincustomers ToM easier as the first to knock.

• Research helps you to design promotion planning:Sometimes your customers reveal the way they love tosee you in the market. Market research gives you theopportunity to know customers’ choice of promotionwhich gets the most and best exposure.

• Research can sometimes reactivate dormantcustomers: Through research you tend to advertiseyour current products and services to the customers,one way or the other. This sometimes leaves a positivefeedback from the customers resulting in generatingconsiderable amount of sales from both active anddormant accounts.

In closing, companies that are successful marketers mustcommit to research as an ongoing marketing strategy. Ifyou’re really serious about improving your company’sidentity, you must have a market research program inplace.

A.S.M Sabbir Hossein KhanOfficer, C & PARD, Marketing DivisionPrime Bank Limited, Head Office

Our Achievements

Best Presented Accounts andCorporate Governance Disclosures Awards 2009

Winner in the Banking Sector Category(1st Position)

Best Presented Accounts and Awards 2009Overall Winner(1st Runner-Up)

SAFA Awards

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Prime Bank Limited, one of the leading banks in thebanking industry of Bangladesh, intends to extend andfacilitate the banking services to the nonresidentBangladeshis (NRBs) in different countries of the world notonly for business opportunity but also as a part ofCorporate Social Responsibility. It is worthwhile to mentionhere that so far the bank is serving the nonresidentBangladeshis through its two fully owned exchange housesnamely PBL Exchange (UK) Ltd., UK and PBL ExchangeCo. Pte. Ltd., Singapore.

As apart of marketing and business development activitiesof the Bank the SEVP and the Head of Marketing Divisionof the Bank paid a visit to Canada and during his visit heconducted an in-depth feasibility study to exploreburgeoning business opportunities for the Bank. He alsoinitiated some business development activities for thetarget segment of the customer living in Canada byattending a number of cultural events on variousoccasions.

Fourth Bangla Book Fair / Toronto Book Fair: On 10thJuly, 2010 the fourth Bangla Book Fair known as TorontoBook Fair was organized in Toronto where Prime BankLimited was one of the prime sponsors. The day long bookfair was participated by a number of publication houses ofBangladesh and was attended by locals along with viewersfrom different part of North America. Former DirectorGeneral of Bangla Academy Dr. Syed Mohammed Shahedinaugurated the fair. The Honorable State Minister of theMinistry of Housing and Public works of the Govt. Republicof Bangladesh, Advocate Abdul Mannan Khan, MPattended the event as the chief guest. RAJUK ChairmanEng. Md. Nurul Huda, Professor of New Castle UniversityAustralia, Abul Hasnat Milton and Former Deputy PrimeMinister of Ontario State of Canada and Present Candidatefor City Mayor of Toronto, George Smitherman werepresent as special guests. The event promulgated theimage of the Bank.

Bangladesh Community Center and Services: On 8thAugust, 2010, strategic committee of BangladeshCommunity Center and Services in Toronto organized aconference cum cultural program proclaiming unity andsolidarity of Bangladeshis living in Canada. The programwas also attended by the Honorable Member of Parliamentof Canada Ms Maria Minna, President & CEO of BengaliTelevision Channel Canada Inc., Dr. Khan Monjur E Khuda,Editor of weekly Aajkal, Mr. Ronny A Chowdhury and ahuge number of local Canadian Bangladeshis.

The event got enormous media coverage through the localnewspapers. Moreover, Weekly Aajkal, a Bengalinewspaper in Toronto, has published an exclusive interviewof the Head of Marketing of Prime Bank Limited focusing onhis purpose of visit and the Bank’s objectives and initiativesin favor of the non resident Bangladeshis in Canada.

During the interview with The Aajkal reporters, the Head of

Marketing of the Bank revealed that Prime Bank Limited

Marketing and Business Development Initiative in Canada

SEVP and Head of Marketing along with the guests at the Toronto Book Fair 2010.

SEVP and Head of Marketing addressing the Toronto Book Fair 2010

SEVP and Head of Marketing of the Bank in an interview with thereporters of the newspaper Aajkal.

11

has been trying to build confidence in the non resident

Bangladeshis towards investing their hard earned money

through the Bank. He also talked about his earlier visit to

Canada and the findings about the burgeoning business

generation opportunity of the Bank.

Customer Meeting: Apart from the above, the Head ofMarketing has also organized a customer meeting wherehe shared his views with the customers, distributed Non-Resident Foreign Currency Account forms and productbrochures to them. He addressed various queries of themand tried to build confidence about Prime Bank Limited. Hereceived huge response from the local non residentBangladeshis in Canada and they also hailed the move thatis taken by Prime Bank Limited.

Conclusion: The Canada tour of the SEVP and the Headof Marketing of the Bank has triggered multi dimensionalbusiness opportunities for the Bank in the near future. Thistour will enable the Bank to gear up fresh and new drives

of business generation in Canada as part its businessexpansion program.

Compiled by:Marketing DivisionPrime Bank Limited

Questionnaire survey with the local community.

Our Achievements

Best Published Accounts & Reports 20091st Position

10th ICABNational Awards

Corporate Governance Disclosure Awards 2009Winner

12

A "stock" is a share in the ownership of a company. Itrepresents a claim on a company's assets and earnings. Asone acquires more stocks, his or her ownership stake in thecompany becomes greater. In finance, a share is a unit ofaccount for various financial instruments including stocks,mutual funds, limited partnerships, and real estateinvestment trust. In other way, a share or stock is adocument issued by a company. This entitles its holder tobe one of the owners of the company. Sometimes differentwords like shares, equity, stocks etc., are used. All thesewords mean the same thing.

So, what does ownership of a company give one? Holdinga company's stock means that one is one of the manyowners (shareholders) of a company and, as such, he orshe has a claim to everything the company owns. Thismeans that technically one owns a tiny little piece of all thefurniture, every trademark, and every contract of thecompany. As an owner, one is also entitled to his or hershare of the company's earnings as well. The companymay distribute some or all portion of this earnings in theform of 'dividend', provided they do not have better use ofthis funds. However, the companies are not legallyobligated to distribute dividends. Take the example ofMcDonald's Corporation. The company started in the1950s, paid its first dividend in 1975. Though it was abillion-dollar company, Microsoft, which was established in1975, paid its first dividend in 2003. If we analyze thehistory of dividend payment pattern of different companies,then we will see that firms with high growth rates are likelyto pay no or lower dividends.

Hence, the Dhaka Stock Exchange (DSE) is categorizingtheir listed companies on the basis of percentage ofdividend declared each year, e.g. with 10% dividend acompany can be listed in 'A' category. And failure to followthis instruction is penalized by downgrading to 'B' or 'Z'category. This regulation is hardly found in other stockexchanges of the world. Legal experts in company law maysee this directive of the DSE to be ultra-vires of the realepitome of company formation or its operation. That is why,companies may be prohibited to talk about future dividendeven in their prospectus. In addition to this, while becomingpublic; companies should have a dividend policy. Thisdocument is not found in the case of any firm operating inour country. However, Securities Exchange Commission(SEC) and DSE have not indicated anything about theirstance on this issue.

Now, a question might come into one's mind about why thefounders of a company would like to share the profits withthousands of people when they could keep profits tothemselves. The reason is that at some point everycompany needs to "raise money". To do this, companiescan either borrow the same from somebody or raise theamount by selling ownership of the company. The later isknown as issuance of stock. Issuing stock is advantageousfor the company because it does not require the companyto pay back the money or make interest payments alongthe way.

Investors, on their part, enter the secondary market (stockmarket) with the hope that they can make money on a stockthrough the appreciation of its price. Sometimes they canearn 100% or more capital gain if the company issuccessful. However, by becoming an owner, investorsalso assume the risk of the company not being successfuland thus may incur capital loss. At this point, it isnoteworthy that investors' risk is locked by 'limited liability'.This means, as owners of a stock, investors are "notpersonally liable" if the company is not able to pay its debt.

Companies are sharing their profit with millions ofshareholders only to raise equity funds from the capitalmarket. But what would be the situation when sponsorsthemselves are in the capacity of financing maximum partof their fund requirements? This will then mean generalinvestors will be fighting for only a small portion of sharesavailable in the market and pull the demand curve. This isvery true in our capital market. In most of the companiessponsors are holding more than 50% of the shares and insome instances, the percentage soars up to ninety. As ourmarket regulators are talking about market correction, pricestabilization, lack of supply, increase of market depth,fundamental analysis before investment and so on, thenwhy are the SEC and DSE allowing this big holding? Is itbecause of poor demand for initial public offerings (IPOs)?We believe the demand for IPOs is not low. Thesubscription result of last ten IPOs does not allow us todraw any contrary conclusion. In most cases, all suchissues were oversubscribed five to ten times. This highdemand shows investors' confidence in those IPOs andultimately, when such shares are traded in the secondarymarket, their prices rise to unexpected height. Thus,genuine investors are not getting time for their fundamentalanalysis. Moreover, when excess demand makes the shareoverpriced, market regulators then intervene in the name ofmarket correction. Who is the loser in this correctionprocess? Obviously, the small investors, who bought thoseshares observing the market trends before intervention.

There is a confusion about the definition and implication offace value of shares in our market. The face value of acommon stock is the nominal value assigned by acorporate charter, and has no specific financial relevanceafter the issue date. It is also known as par value of shareand a company decides what will be the par value of itsshare. However, it depends on two different factors:authorized capital and number of shares they want toissue. Authorized capital is the maximum capital acompany can raise in its lifetime and is mentioned in itslegal documents (Article of Incorporation andMemorandum of Association). A company also decideshow many investors they want to share their ownership,i.e., the number of shareholders. When authorized capitalis divided by the number of shares, a company gets facevalue or par value of its share.

In our capital market we have experienced certaincomments on face value, e.g. no firm can issue share formore than Tk. 10 or Tk. 100. There is, thus, a strongtrend to ensure a uniform face value for all companies to

Some Thoughts from Stock Market

13

minimize the ambiguity between market price and parvalue. This has largely misguided the investors becausefundamentally face value has no connection to the marketprice and not even is a determinant. For example, if thereare two companies with net asset value of Tk. 500, theshare of one can have a face value of Tk. 10 and that of theother, Tk. 100. In that case, what would be the expectedmarket price of shares of each company or at what price aninvestor should buy the share from that the market,assuming the risk and all other market-related parametersare exactly the same for both companies? Both the sharesshould definitely be traded in the market at around Tk. 500(±). Now the question is, how is the face value creatingambiguity in this case? Or how is this 'non-uniformity' of theface value misdirecting the investors? The regulatory bodymight have different explanations. Furthermore, thecompany law provides no scope for such 'uniformity' or'ambiguity'. The law says company is the only authority todetermine their par value.

One more issue related to face value and market valuemay be discussed here. Fundamentally, they have noconnection. For any shareholder, the price of a stock(market value) is equal to what he or she has paid for it inthe secondary market, other than IPOs. Even, if the firmissues shares at a premium, the price will be more than par

value at the time of subscription for IPOs. Nonetheless, ata later date when companies announce earnings, theydeclare the same on face value because of accountingconvenience. So as an investor, one needs to calculate thevalue of his or her return, as compared to market value, noton par value. Let this issue be illustrated with an example.Let us say one has bought one share at Tk. 200 (investor'sinvestment is Tk. 200) from the market, whereas its facevalue is Tk. 10 and then the concerned companyannounces 50% dividend. In that case, the investor willreceive Tk. 5.0 (Tk. 10 x 50% x 1 share) on his or herinvestment. Therefore, his or her actual return (dividendonly) on one share is 2.5% (Tk. 5.0/Tk. 200). Based on thiscalculation, the distinction between par value and marketvalue is clearly visible. An investor might become veryhappy over the announcement of 50% dividend on parvalue; however, the eventual impact on his or her wealth isonly 2.5%. It is a tricky game!

Anup ChowdhurySenior LecturerBRAC Business SchoolEmail: anup@bracu.ac.bd

While waiting in line at the bank, a co-worker developed a very loud case of hiccups.

By the time he reached the teller's window, the hiccups seemed to have worsened. The

teller took my friend's check and proceeded to run a computer verification of his

account. After a minute she looked up from her terminal with a frown and said that

she would be unable to cash his check. "Why not?" My friend asked incredulously.

"I'm sorry, sir," she replied, "but our computer indicates that you do not have

sufficient funds to cover this amount. As a matter of fact," she continued, "our

records show your account overdrawn in excess of $5000." "It can't be!" he cried. "You

have to be kidding!" "Yes, I am," she answered with a smile, counting out his cash.

"But you will notice that your hiccups are gone."

Corporate Jokes

14

i. Exports receipts during July-October, 2010 increasedby US$1827.85 million or 37.35 percent toUS$6721.41 million as compared to US$4893.56million during July-October, 2009.

ii. Import payments during July-September, 2010increased by US$1897.00 or 37.02 percent toUS$7021.60 million compared to US$5124.60 millionduring July-September, 2009.

iii. Remittance receipts during July-October, 2010decreased by US$32.63 million or 0.90 percent toUS$3576.17 million against US$3608.80 millionduring July-October, 2009.

iv. Gross foreign exchange reserves of the BB stoodhigher at US$11160.34 million as of end October,2010, against US$10833.55 million by endSeptember, 2010.

v. The annual average rate of inflation (12-monthannual average CPI, 1995-96=100) increased to 8.12percent in September, 2010 from 7.87 percent ofAugust, 2010.

Monetary Policy Context, Outcome and Outlook

FY 10 macroeconomic developments and monetary policyactions in retrospect: In the backdrop of global economycoming out of slowdown on a recovery path beset withlingering uncertainties, FY 10 (July 09-June 10) began forBangladesh economy on growth path with 5.88 percent FY09 real GDP growth against preceding year’s 6.19 percent;but with weakening export demand from traditional westernmarkets, slowdown in new investment activities and a largeliquidity overhang cumulating from slow utilization ofgrowing inflows from expatriate workers. Expectations forFY10 were for substantial recovery in export and newinvestment growth momentum by the end of HI FY10.Growth supportive stances were maintained in fiscal andmonetary policies, but with wary eye on buildup ofinflationary pressures. To sustain buoyancy in domesticdemand and output activities, the social safety net for theweak and the vulnerable poor was widened; strongagricultural and SME credit programs supported by BBrefinance lines expanded financial inclusion ofunderserved/un-served productive economic sectors andpopulation segments. Domestic demand, output andinvestment activities thus strengthened were expected touse up the liquidity overhang from FY 09. Real GDP growthin FY 10 was expected to be around 6.00 percent, with 12month average CPI inflation within 6.50 percent by end FY10, from 6.66 percent of end FY 09.

Remittances are the Country's Second HighestRevenue Earner after Exports

The amount of money sent home by Bangladeshis livingabroad has reached a new record high, according to theCentral Bank of Bangladesh. In August, the total sum ofmoney sent home reached a historic peak of $937m up;30% from a year ago. The boost to the Bangladeshieconomy comes despite the global recession hittingoverseas jobs. Remittances are the country's second-highest revenue earner after exports. There are anestimated 6.5 million Bangladeshis living and workingabroad, mainly in the Middle East, Europe and the UnitedStates. Millions at home are dependent on money sent bytheir expatriate relatives - money that has been credited forthe decline in poverty in the country. "The figure also showsthat the global recession had little impact on the flow ofremittance to Bangladesh although job opportunities in themajor markets have declined in recent months." Manyother countries have reported a sharp decline inremittances during the economic downturn. But analystssay many Bangladeshis are in low-end jobs and so therecession has not hit them as hard as it has affected bluecollar workers.

Growth Outcome and Outlook

Output growth performance in the agriculture sector inBangladesh was robust in FY10, with climatic conditionsfavorable on the whole, and with strong hands on supportfrom agricultural ministry and government ensuring timelyaccess to adequate inputs and financing. The agricultureministry estimates FY10 agriculture sector output growthprovisionally at 4.39 percent, against preceding year’s 4.60percent. Industry sector output growth is estimatedprovisionally by the government at 6.42 percent againstpreceding year’s 6.46 percent; quite fair when seen againstoutput disruptions from power and gas supply outages, andfrom slower than hoped for recovery in export demand.Provisional government estimate for service sector outputgrowth in FY10 is 6.59 percent against preceding year’s6.32 percent, the higher FY10 growth supported interaliaby BB promotion of SME lending, and higher social safetynet expenditures of the government underpinningbuoyancy of domestic demand. Government’s provisionalestimate for overall FY10 GDP growth is 6.09 percent,against preceding year’s 5.88 percent. Final BBS estimatefor FY10 growth are yet to be available, and some externalobservers hold the view that FY10 real GDP growth may

Economic Indicators During FY 2009-2010

15

actually have fallen marginally short of 6.00 percent,because of energy shortages causing underutilization ofmanufacturing output capacity, and slower than hoped forrecovery in export growth. For FY11, the national budgetprojects real GDP growth of 6.70 percent; which should beattainable subject to favorable weather conditions foragriculture, rapid recovery in export growth withdiversification into new markets including the emergingeconomies, and urgent substantial increase in power andgas supplies.

Inflation Outcome and Outlook

Despite easing in domestic annual point to point CPIinflation trend from March 2010 and in global commodityprice trends from May 2010, 12-month average domesticinflation crept to 6.51 percent in April 2010, exceedingmarginally the 6.50 percent ceiling targeted for FY10. Theaverage CPI inflation will continue up creep for somemonths before starting decline in line with trend in point topoint CPI inflation. IMF’s July update of WEO projectsglobal inflation to remain moderate in 2010 and 2011 andthe FY11 national budget expects 12-month average CPIinflation in Bangladesh to remain within 6.50 percent inFY11.

Monetary Policy Stance for H1 FY11

Monetary policies in FY11will be maintained on a growthsupportive stance to help promote faster inclusiveeconomic growth, with due vigil against inflationarypressures. BB’s financial inclusion initiatives will continuestrong support for adequate lending for agriculture, SMEs,renewable energy and other productive sectors; whilediscouraging expansion in lending for wastefulconsumption and unproductive speculative investments.Monetary program for FY11 has been chalked upaccordingly, based on real GDP target and inflation ceilingmentioned in the FY11 national budgets. BB will remainproactive in liquidity management operations and policyinterest rate/CRR/SLR adjustments as warranted byunfolding developments. The liquidity overhang and theinflows driven appreciation pressures on Taka areexpected to ease out with stronger investment activities,and with settling down of workers’ remittance growth andrise back of import growth to their trend levels. The financialstability of banks and financial institutions are also under

constant watch of BB. For this, the state owned and privatesector banks are now being supervised by BB on the samefooting.

Mobile Banking

Prompt delivery of workers’ remittances, at affordablecosts, to recipients in rural areas away from bank brancheshas for long remained a challenge for banks. Remitters andrecipients not well-served by banks have often been luredby fast acting hundi channels diverting the foreignexchange inflows to illegal capital flight, tax evasion andcrime/terrorism financing. Mobile banking, using cell phoneas a tool, extends banking services to the door of the masspeople. Fast expanding mobile telephony in Bangladeshalready covers well over half the total adult population. Thishas opened up windows of opportunity for creativepartnerships of banks and mobile telephone companies indevising cost effective arrangements for delivery ofremittances (and eventually other financial services)through the countrywide area agent networks of mobilephone companies covering rural areas distant from bankbranches. BB has now been encouraging suchpartnerships between banks and mobile phone networks, anumber of such BB approved partnerships are alreadyactive. Recently, BB has strengthened its monitoring andsupervision activities on agricultural and SME loan with thehelp of the existing countrywide mobile network, keepingrecord of cell phone numbers of farmers and smallentrepreneurs.

Green Banking

BB has introduced Taka 2.0 billion refinance line in FY 10against bank loans for environment friendly investments insolar energy, biogas plants and effluent treatment plants.All commercial banks will provide loans up to Taka 1 crorefor setting up effluent treatment plant (ETP), solar paneland bio- gas plant at a 9 percent interest rate. Recently BBswitched over to solar-powered lighting by setting up a 20kilowatt solar panel, as a move towards encouraging greenenergy in Bangladesh. A new refinance facility of Taka 5.0billion has just been introduced to capacitate jute sector,the age-old green pillar of Bangladesh economy.

Source: Bangladesh Bank Website.

16

The corporate sector in Bangladesh and beyondrecognises that bumping up of Corporate SocialResponsibility (CSR) designed to respond to huge unmetneeds of the society can be one of the important means inachieving long term and persistent business value. Betterunderstanding of CSR has also strongly come about as aresult of the United Nations Millennium Development Goals(MDG), in which a major goal is the increased contributionof assistance from a range of organisations to help alleviatepoverty and sufferings, and for businesses to be moreaware of their impact on society. In the context of country’scurrent scenarios, private and public together with thedevelopment players and partners are very much aware ofthe CSR and its synergistic effects on nationaldevelopment process. There is no “one-size-fits-all” forpursuing a CSR approach. Each company has uniquecharacteristics and circumstances that will affect how itviews its operational contexts and its defining socialresponsibilities. One of the finest things about CSR asperceived by Prime Bank is the extent to which it takes realsocial and community problems or issues in the way bankdoes business and innovates responses to them. As such,Prime Bank has strengthened the management capacity ofits Foundation, the non-profit subsidiary of the bank for itscorporate social responsibility, having staffed with right kindof human resources required to reinforce it commitment tothe society.

Prime Bank Foundation (PBF) works to create anopportunity for all to access to basic human needs, thehealthcare and education, in particular in which everyperson enjoys their right to a life with dignity. TheFoundation in line with its strategic framework and inconformity with Bangladesh Bank’s guidelines on CSR willkeep going with its endeavours over the next five yearsfocussing on three strategic goals or pillars. Each pillar issupported by several key initiatives with near and long termmeasurable targets.

Goal 1: Make education more accessible to the targetpopulation we work for

Goal 2: Make health more accessible to the targetpopulation we work for

Goal 3: Build a strong and dynamic organisation, capableof facilitating effective education, eye and othercomponents of health programme, and having positiveimpact on public opinion, policies and practices.

Aligning with its long-term goal, the Prime Bank Foundationhas chalked out a number of short, medium and long termprojects focusing more on health and education to be rolledout over a period of next 5 years. Some of theprojects/programmes have already been initiated/implemented.

Prime Bank Foundation has taken education as a tool forsocial change. Accordingly, education has been one of keyareas the Foundation is focusing on. The Foundation hasboth medium term demand side and long term supply sidefinancing education projects. In one hand, through itsdemand side financing project named as “EducationSupport Programme”, the Foundation since 2007, hasbeen trying to remove the access barrier of many economichardship-hit estimable students to their desired level ofeducation by providing long term and renewable financialsupport. Under this programme the underprivileged butmeritorious students are being provided with financialsupport in the form of monthly stipends for the persuasionof their under-graduation/graduation/post-graduation levelstudies in the country’s public sector universities andmedical/engineering/agriculture colleges. With a view toproviding financial support to higher secondary levelunderprivileged but meritorious students, in 2010, a projectknown as NHS Education Award under Education SupportProgramme has been launched from a hard-to-reachdistrict like Shariatpur. On the hand, under its supply sidefinancing project, in 2008, it has set up a low cost butquality English Medium school “Prime Campus” moreaccessible to all at Uttara, Dhaka.

The impacts of Prime Bank Foundation’s projects oneducation have started to be highly visible at the personaland family levels of the priority target groups which arebeing closely monitored and documented/ disseminated ascase studies/success stories. As such, the Foundationwould continue to attach importance to education as one ofits areas of focus and keep necessary budgetaryallocations needed for materialising the plans oneducation.

With a view to achieving a part of the goal on healthcare,the Foundation is going to set a state-of-the-art eyehospital in Dhaka city soon, the hallmark of which will bequality eye care at prices that everyone can afford.

The transition of Foundation’s approach from short term tomid and long term solutions for the problems it intends toaddress has led us to analyse current capabilities, prioritiseand strategise choices including the purchase of landsneeded for implementing long term visible projects oneducation, health and other service delivery sectors. Theresult of which has already been noticeable throughpurchase of a big piece of land at Ashulia, Savar needed tobuild a complex of its long term education, health and otherservice delivery projects thereon.

Dr. Iqbal AnwarCEO, Prime Bank Foundation

CSR Seen Through Prime Bank Foundation Lens

17

Motivation: Many contemporary authors have defined theconcept of motivation as: the psychological process thatgives behavior purpose and direction (Kreitner, 1995); apre-disposition to behave in a purposive manner to achievespecific, unmet needs (Buford, Bedeian, & Lindner, 1995);an internal drive to satisfy an unsatisfied need (Higgins,1994); and the will to achieve (Bedeian, 1993). For thispaper, motivation is operationally defined as the inner forcethat drives individuals to accomplish personal andorganizational goals.

Why is motivation of employees needed? The answer issurvival (Smith, 1994). Motivated employees are needed inthe rapidly changing workplaces. Motivated employeeshelp organizations survive and grow. They are moreproductive. To be effective, managers need to understandwhat motivates employees within the context of the rolesthey perform. Of all the functions a manager performs,motivating employees is arguably the most complex. This isdue, in part, to the fact that what motivates employeeschanges constantly (Bowen & Radhakrishna, 1991).

Employee: As per Merriam-Webster Online Dictionary'Employee' is one employed by another usually for wagesor salary and in a position below the executive level.

An employee, in legal terms, is a person who is employedby an employer to do any work for hire or reward under anemployment agreement. This means that people who workas independent contractors are not treated as employees(but they still have obligations, and obligations are owed tothem). The legal act treats some people who do not fit thisdefinition as if they were an employer’s employees for mostpurposes. These are:

n people working as volunteers, in certain situations;

n people who are getting on-the-job training or gettingwork experience;

n people who are loaned by their employer to do workfor someone else.

Under the common law doctrine in the United States, an'employee' is one who a person has the right to 'direct andcontrol' in the performance of some compensated duties,and accordingly, it is appropriate to hold the 'employer'liable for the tasks of the employee he 'controls'.

We may mention some other definitions of 'Employee'(collected from internet):

n Any individual employed by the Employer;

n A person who performs work for an employer under averbal or written understanding where the employergives direction as to what tasks are done, butindependent contractors are not employees;

n A person who works for a public or private employer andreceives remuneration in wages, salary, commission,tips, piece-rates or pay-in-kind;

n An individual who provides services for compensationto an employer and whose duties are under the controlof the employer;

n Employment is a contract between two parties, onebeing the employer and the other being the employee.In a commercial setting, the employer conceives of aproductive activity, generally with the intention ofcreating profits, and the employee contributes labour tothe enterprise, usually in return for payment of wages.

Developing Country: The expression 'Underdeveloped ordeveloping countries' originated in the mid 1900s, at firstdenoting those countries in Asia and Africa that were notaligned with either the communist bloc nations or the non-communist western nations. Because they were for themost part poor and underdeveloped, the term wastransferred to all countries with those characteristics, andlater still to poorer groups within a larger prevailing culture.

These countries are technologically less advanced, ordeveloping, generally characterized as poor, havingeconomies distorted by their dependence on the export ofprimary products to the developed countries in return forfinished products. These nations also tend to have highrates of illiteracy, disease, and population growth andunstable governments. The term 'Third World' is also usedfor these countries. Numerically, the Third World dominatesthe United Nations, but the group is diverse culturally andincreasingly economically, the oil-rich nations, such asSaudi Arabia, Kuwait, and Libya, and the newly emergedindustrial states, such as Taiwan, South Korea, andSingapore, have little in common with desperately poornations, such as Haiti, Chad, and Afghanistan. In 1980, theearth's population was estimated at 4.4 billion, 72 percentof it in the third world, and it reached 6.2 billion, 80 percentof it in the third world, at the close of the century. Thispopulation explosion in the third world will surely preventany substantial improvements in living standards there aswell as threaten people in stagnant economies withworsening poverty.

Money: Encyclopedias and other books scream thatMONEY is the mean by which the exchange relationshipsare realized. Money randomly appeared at some historicalphase. In pre-capitalist formations different goods such asfur, grain, cattle served as money. Gradually, precious

Money as a Motivational Factor for Employees at Developing Countries

18

metals (gold, silver) took over that role because they meetthe requirements of the money as a good in the bestmanner. The complication of the modern financial flowsfacilitated substitute of metal money for credit money thatarose in the form of bills and bank accounts. The mainfunctions of money are turnover, value function, and savingfunction.

Now-a-days a new function of money obtained a significantmeaning; this function is the reflection of the level ofcredibility in our society. Not only can money solveproblems, but it can create them, too. The usage of itcreates inequality and interdependence. Money is ameasure of wealth and a measure of poverty at the sametime. Not only becomes it attributed to the power, but aweapon in the fight for power. Moralists condemn money,idealists refute it, and even economists sometimesundermine its meaning. However, it is universal in everydaylife, and it fuels overall progress. From the very beginningof its existence money created a new type of obsession -strive for possessing it in great amounts, because for manypeople it became a measure of happiness. That's whymany religions consider money evil, a devil's seduction.

We get some other definitions of 'Money' (collected frominternet):

n The most commonly used medium or media ofexchange in a market society. A community's mostmarketable economic good, which people seekprimarily for the purpose of later exchanging units of itfor the goods or services they prefer. The circulatingmedia most readily accepted in payment for goods,services and outstanding debts. Money is anindispensable factor in the development of the divisionof labor and the resulting indirect exchanges on whichmodem civilization is based.

n A piece of metal, as gold, silver, copper, etc., coined, orstamped, and issued by the sovereign authority as amedium of exchange in financial transactions betweencitizens and with government; also, any number of suchpieces; coin. It acts as an intermediary market good andis an abstract form of power.

n Classically it is said that money acts as a unit ofaccount, a store of value, and a medium of exchange.Most authors find that the first two are nonessentialproperties that follow from the third. In fact, other goodsare often better than money at being inter-temporalstores of value, since most monies degrade in valueover time through inflation or the overthrow ofgovernments.

n A psychological creation; a concept; the mental imageof that which is used as a medium of exchange.

Discussion: Motivation is recognized as one of the besttools of modern people management. It has been watchedsince the inception of ‘Human Resource Development’ as

the most widely accepted means to sharpen the inherentcreative intuition of professionals of different occupationsespecially the people who serves the organization formoney in the form of salary or remuneration. Men used tocome out of caves for hunting or to collect fruits - to satiatetheir basic needs. Till date, men or women are used to sellout their labor, service or talent for money to buy dailynecessities to satisfy their basic wants, comforts orluxuries.

In developing countries, people are used to spend theirearnings to buy basic needs such as food, shelter, clothing,medicines and for education where earning scope islimited. In families, hardly one or two persons have theearning scope while others are absolutely dependent onthem. Moreover instability and price hike put the cost ofliving line upward trend all the time, it goes higher everyyear. So the earning person cannot comply with thepositive norms of recognition of life other than cash benefit.

Every human being is a conscious lord of nature, thoughmany of them can not expose their inborn creative intuitiondue to lack of inspiration or persuasion. Motivation is an artand science of recognizing one’s creative intuition orcontribution, distinct from others following the sameperformance declaring, either in material or in abstractform, persuading to do better performance further. Merelucid approach to act distinctively pays in maximum caseszero contribution. But if it were declared in material benefit,the asking job would have been a better performanceindeed. Therefore money plays a pivotal role to acceleratebetter performance whenever he or she is engaged.

An employee may be a person irrespective of gender,creed a color who sells their services at a pre fixed ratemeasured by times payable on daily, weekly or monthlybasis. This service is treated in average. But in course oftime, if the employee so wishes or tries may developvolume of performances with accuracy or some times extraperformances. Here the employer recognizes theemployee by way of promotion, better posting, with extraresponsibility, vehicle facility and by increasing his or hersalary / remuneration. This persuasion is a motivation, theemployee to do quality jobs of distinctive nature with duecare.

Amongst all the aforesaid recognition, money is widelypreferred in developing countries like ours. For examplewhat we see is that garments workers at a comparativelybad working atmosphere work relentlessly up to the deadof night for the sake of money, an extra or additionalmonetary benefit. Similarly the sweepers in the streetsclean odd garbage for money. Educated fellows preferprivate corporate jobs, work even up to late hours ofthe day, for better payment. Social recognition pays herevery humbly. So, money as a means of motivation – is

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unanimously accepted, in a society like ours, and themaxim 'money is godlier' – is established.

To translate the arguments, the following dominating pointsshould be pointed out:

n Money is only the medium of exchanges; so moneymotivates people for better performance;

n Since developing countries are not affording welfareto the citizens, every necessity is to be purchased orhired at the cost of money;

n Mere abstract recognition may appetize the impulse ofan employee but it will serve no purpose of his or herbasic needs;

n Cash payment for good job as a means of motivation,most of the employees become keen to dischargebest of their abilities as money enables them to buythese basic needs and comforts;

n As money has the unquestionable acceptance inexchange, recognition of one’s extra ordinaryperformance in money makes the motivation aspect amomentum to the vast majority;

n 'Money is the criteria of social status' – is widelyrecognized in every developing country. People ingeneral ask for the figure an employee draws butseldom for the position has he or she held.

In contrary to the above living points of arguments,somebody may raise questions for social dignity of theemployee. Some may opine that the public organizationcould bring him or her extra recognition and respect, but infact, due to financial insolvency people do not bother towork even as a clerk where extra income is possible ratherthan to join as a first class magistrate. Highly educated andmeritorious young men, now-a-day, who qualify publicservice commission, give first option or preference forcustoms or for police service, because of monetarypreference. In poorly paid conglomeration employeescount time to leave office but in multinational organizations,employees don’t bother to work up to late hours of the dayfor better payment. Doctors of government hospitals arecommitted to serve the people but they are busy in privateclinics and health complexes for money. So, in developingcountries, it has been well felt that only money can unlockthe dormant innovation of an employee. In fact, peoplehave different needs those lead them for innovation andproduction things to be done.

Abraham Maslow presented his 'hierarchy of needs' theoryexplaining need based motivation and he proposedbasically a five level hierarchy. But in comparison to theneeds of developed countries and the developing countiesneeds, Maslow's physical safety need is more workable indeveloping countries. For example, garments workers ofChina and Bangladesh work for their existence, need

basics for their survival. The extrinsic reward they receiveand hygiene factor such as job security, adequate pay andsafe working condition that help avoid dissatisfaction. Sincethey are tired of paying for the basic needs, don’t reallyexpect intrinsic rewards such as opportunity inadvancement, job challenge, or increased responsibility.Though Maslow's theory is not fully workable but this maybe termed as the mean to develop a work force in thedeveloping counties.

Clayton Alderfer developed a needs specific model ofmotivation (ERG theory) simplifying content theory thatidentifies existence, relatedness and growth needcategories and acknowledges multiple needs may beoperating at one time without being hierarchy determined.Alderfer rejects Maslow's premise that lower level needsmust be satisfied before higher level needs are activated.ERG theory believes that a person can seek growthexperiences when relatedness and may be even existenceneed have not been adequately met. This may be a farmicroscopic percentage. But in reality, Alderfer's ERGtheory could not claim dominance for motivational tools.

Gradually the researchers engaged themselves to find outthe tools those have positive response on motivation.Frederick Herzberg developed a ‘dual factor’ theory,segmenting as hygiene factors and motivator factors.Hygiene factors are those factors surrounding the job - jobsecurity, working conditions, quality of supervision,interpersonal relationships, adequacy of pay and fringebenefits - lacking of which may cause dissatisfaction, sohygiene factors affects greatly in the third world countries.But motivator factors such as job challenge, responsibility,advancement and recognition are intrinsic. So, for theneedy, motivator factors, seem less appealing.

Douglas McGregor’s theory ‘X’ and the theory ‘Y’ thoughcrafted from philosophical views, but his theory ‘X’assumed about human behavior postulate that people actto realize basic needs and therefore do not voluntarilycontribute to organizational aims. What we are viewing ascitizens of a developing country like ours and otherdeveloping countries where workers and employees go forstrike if their basic needs are not met as desired. On thecontrary these people work enthusiastically where thepayments can satiate their basic needs.

Comparative Scenario: Motivation is our consciousdecision to direct our efforts more toward one or moreactivities than other possibilities and or to vary the level ofefforts exerted. Several theories seek to identify individualneeds or motives and suggest how each factor activatesdifferent behaviors. Maslow originally identified fivehierarchical levels of needs but later simplified to defineneeds as either deficiency or growth aspiration forces.Alderfer distilled Maslow's theory into three nonhierarchical

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needs - like existence, relatedness and growth that broughtto research support. Herzberg focused on work motivationclaimed simply providing for hygiene or maintenance needsdoes not – motivate. Only motivators, the sources ofsatisfaction found in the nature of work, itself will motivate.

Some needs become such compelling sources ofsatisfactions to an individual that they become sociallylearned motives. Theories of motivation are applicable indifferent societies in different ways to different incomeclasses.

The above named experts passed their opinions in thecontext of North American socio-economic structure whichmay not be fully compatible with the developing countries,because these researches reflected the mental picture ofthe professionals of much higher income class societies.Yet these researches could point out some real lifeparameters which are able to disclose the causes ofproblems of the developing countries that we havementioned earlier. Professionals of developed countriesmainly spend their income for comfort and luxuries while indeveloping countries, they are to spend maximum of theirincome on basic needs like food, shelter, clothing,medicines and education. In developed countries,professionals value on intrinsic value of motivation whilethe developing countries professionals prefer in extrinsicone.

Though motivation is a widely accepted tool to persuadeprofessionals all over the world but it differs basing on basicneeds and the available means to satiate thoserequirements. Whenever the professionals of thedeveloped countries await holidays to attend their friends ofopposite genders in clubs and casinos - professionals ofdeveloping countries go to meet their families at home.

Echoing philosopher Alfred North Whitehead’s opinion ofthree purposes of motivation those represent men’s needsshowing their preference i.e. first to be alive, next to livewell and then finally to live better. Now we are to considerthe workable tools of motivation those persuadeprofessionals or employees to work as per the desire ofemployers. The choice for satisfaction or dissatisfactionvaries from society to society depending on financialstamina. Normally what is luxury to one may be comfort toanother and necessity to somebody. This is true to all geo-physical regions - segmented as per per-capita income.For example, a car is an essential item in the developedcountry for most of the people and it is a comfort to manybut is a mean of lively hood to a taxi-cab driver.

Employees of developing countries can not think of apersonal car as their incomes are not worthwhile tomaintain it. An employee’s budget is almost always a deficitbudget as he is to maintain all the dependants upon him

and is to spend much of the budget to buy food, clothingand shelter. So, to please an employee, the employerneeds to pay more money. Here is a saying, 'let money tomend one’s poverty torn soul and this is a better treatment'.

In developed countries, motivational tools work individuallywhile in developing countries these tools work on groups.Reasons are that in developed countries professionals arevery much individualistic in nature. Hofsteed's investigationof dominant cultural values in so countries found thatUnited States ranks higher in individualism. Similar casesare found in Canada, Great Britain, Netherlands, Belgium,Germany, Australia, Switzerland and many parts of thedeveloped world. Family concept is almost absent therewhich is almost reverse to the social order of thedeveloping countries.

It is generally understood that countries with people whocould satiated their intrinsic needs – thereafter may thinkfor extrinsic needs to be satisfied. Persuasion in thelanguage of money is worth persuading than any otherforms applied in developed society. So, it is rightlypronounced that money is the strongest motivationalmeans of employees in developing countries.

Conclusion: In the end, we should say that to motivate theemployees wherever they happen to work, employersrecognize employees contributions in so many languagesand forms, but when it is in case of developing countriesthey (employers) are to locate their (employees) tools ofsatisfaction. Developing countries are those whereemployment opportunity is limited, alternative earningsources are scared, social securities are ignored, economicdisorders and price hike are common, dependence onnearest man or woman earners are many.

Beyond this, some prefer promotion, some prefer betterposting, few may prefer for extra responsibilities but moneyhas a common appeal to all. So, the question itself showsthe trail of answer straight to the highway of tested class ofmaximum employees in developing countries. Yes, thereare some other stimuli of motivation having appeal thosecould satiate their extrinsic need earlier. The salient featureof the employees in general in the developing countries isthat they can hardly satisfy the basic needs. They cannoteven think of living better. Therefore, money is the mostappealing means for motivation in developing countries.

Abu Zafar Md. Sheikhul IslamSenior Vice PresidentIslamic Banking Division

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It is well recognized that well-functioning financial systemsare essential for economic development. Well-functioningfinancial systems are by definition efficient, allocating fundsto their most productive uses. It also covers other vitalpurposes such as offering savings, payment and riskmanagement products to as large a set of participants aspossible, seeking out and financing good growthopportunities wherever they may be.

The current development theories increasingly project therole of access to financial services, the lack of which isoften the critical element underlying income inequality aswell as slower growth. In its landmark research titled“Building Inclusive Financial Sector for Development”popularly known as Blue Book, the United Nations hadraised the basic question: Why are so many bankablepeople unbanked? Who are bankable unbanked?

It is estimated that globally over two billion people arecurrently excluded from access to financial services.Financial Inclusion has become an issue of world wideconcern, relevant equally in economies of the underdeveloped, developing and developed nations.

Building an Inclusive Financial Sector has gained growingglobal recognition bringing to the fore the need fordevelopment strategies that touch all lives, instead of aselected few. An Inclusive Financial Sector, the Blue Booksays, would provide access to credit for all “bankable”people and firms, to insurance for all insurable people andfirms and to savings and payment services for everyone.

Rangarajan Committee on Financial Inclusion (RBI, 2008)has defined FI as “delivery of banking services and creditat an affordable cost to the vast sections of disadvantagedand low income groups. The various financial servicesinclude saving, loans, insurance, payments, remittancefacilities and financial counselling / advisory services by theformal financial system”

As banking services are in the nature of public goods,financial inclusion should therefore be viewed asavailability of banking and payment services to the entirepopulation without discrimination of any type.

Why does Inclusive Financial Sector development matter?Access to a well- functioning financial system caneconomically and socially empower individuals, inparticular poor people, allowing them to better integrateinto the economy of their countries, actively contribute totheir development and protect themselves againsteconomic shocks. Creation and expansion of financial

services targeted to poor and low-income populations canplay a vital role in enhancing financial access.

Inclusive Financial Sectors in which no segment of thepopulation is excluded from accessing financial servicescan contribute to attaining the goals contained in the UnitedNations Millennium Declaration, such as halving theproportion of people in the world who live in extremepoverty by 2015. Nobody knows the proportion of people indeveloping countries that use the services of financialinstitutions.

One recent review of national surveys reported that 89.6%of the population of 15 countries in the European Union hada bank account, with country proportions ranging from99.1% in Denmark to 70.4% in Italy. The comparable figureof the United States was 91.0%. The most recentcomparable compilation of available data for developingcountries found the following:

Country % with an Account

Botswana 47.0

Brazil 43.0

Mexico City 21.3

South Africa 31.7

Tanzania 6.4

For promoting financial inclusion, we have to address theissue of exclusion of people who desire the use of financialservices, but are denied access to the same. In countrieswith a large rural population (like BD), financial exclusionhas a geographic dimension as well. Inaccessibility,distances and lack of proper infrastructure hinder financialinclusion

Another facet of exclusion which needs to be addressed is“Social Exclusion”- which is an extreme consequence ofwhat happens when people do not get a fair dealthroughout their lives. Social exclusion is about more thanincome poverty. Usha Thorat (2007) argues, there are avariety of reasons for financial exclusions. In remote andsparsely populated areas with poor infrastructures,physical access itself acts as a deterrent:

From the demand side

n Lack of awareness

n Low income/assets

n Social exclusion &

n Literacy act as a barrier

Inclusive Banking: A Means for Sustainable Development

22

From the supply side

n Distance from the branch

n Branch timings

n Cumbersome documentation & Procedures

n Unsuitable products/staff attitudes are commonreasons for exclusion.

All these results in higher transaction cost and lowerprofitability. On the other hand, the ease of availability ofinformal credit sources makes these popular even ifcostlier.

Who are excluded? Usha Thorat opines, in the Indiancontext, the financially excluded sections largely comprisethe following:

n Marginal farmers

n Landless labours

n Oral lessees

n Self-employed and unorganized sector enterprises

n Urban slum dwellers

n Migrants

n Ethnic minorities and

n Socially excluded groups

n Senior citizens and women

While there are pockets of large excluded population inurban areas, the rural areas contain most of the financiallyexcluded population. It may be worthwhile to have a look atthe international experience in tackling the problem offinancial exclusion so that we can learn from theinternational experience:

United Kingdom

In UK financial exclusion is concentrated in certaingeographical areas. According to HM Treasury estimate,the country has a relatively high number of households andindividuals of 12% without bank accounts. The FinancialInclusion Task Force in UK has identified three priorityareas for the purpose of financial inclusion:

a. Access to banking

b. Access to affordable credit and

c. Access to free face-to-face money advice

UK has established a Financial Inclusion Fund topromote financial inclusion and assigned responsibility tobanks and credit unions in removing financial exclusion. APost Office Card Account (POCA) has been created forthose who are unable or unwilling to access a basic bankaccount.

The concept of a savings gateway has been piloted. Thisoffers those on low-income employments £1 from the statefor every pound they invest, up to a maximum of £25 permonth. In addition, the Community Finance LearningInitiatives (CFLIA) were also introduced with a view topromoting basic financial literacy among housingassociation tenants.

United States of AmericaIn USA between 9.5% and 20% of households lack a bankaccount. Around 22% of low income families do not haveeither a current or savings accounts. A civil rights law,namely Community Reinvestment Act (CRA) in the UnitedStates prohibits discrimination by banks against low andmoderate income neighbourhood.

The CRA imposes and affirmative and continuingobligations on banks to serve the needs for credit andbanking services of all the communities in which they arechartered. In fact, numerous studies conducted by FederalReserve and Harvard University demonstrated that CRAlending is a win-win proposition and profitable to banks.

An interesting feature of basic banking account scheme isthe element of transparency i.e. the banking institutionshould, prior to opening the account, furnish a writtendisclosure to the account holder describing the mainfeatures of the scheme. In 2003, legislation entitled“Access to Basic Banking Services Regulation” wasintroduced in the country to ensure that all Canadians couldobtain personal bank accounts without difficulty.

Financial institutions are required to open personal bankaccounts as well as cash most Government cheques at nocharge (even to non-customers) for any individual thatmeets basic requirements. The Federal Govt. alsointroduced legislation-requiring banks to offer a standardlow cost bank account with a basket of services.

Germany

In Germany, during 1995, the banking industry endorsed ajoint recommendation entitled “Current Accounts forEveryone”, undertaking to provide current accounts ondemand. There have been two reports (1996 & 2000) onthe effects of this voluntary undertaking. The results haveso far been positive.

India

On all India basis 59% of the adult population in the countryhave bank accounts. In other words, 41% of the populationis unbanked. In rural areas, the coverage is 39% against60% in urban areas. The extent of exclusion from creditmarkets is much more, as number of loan accounts

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constituted only 14% of adult population. In rural areas, thecoverage is 9.5% against 14% in urban areas.

The Reserve Bank of India has undertaken a number ofmeasures for attracting the financially excluded populationinto the structured financial system. These are:

n In November 2005, bank were advised to makeavailable a basic banking 'no-frills' account with low ornil minimum balances as well as charges to expandthe outreach of such accounts to vast sections of thepopulation.

n In order to ensure that persons belonging to lowincome group, both in urban and rural areas do notencounter difficulties in opening bank accounts, theKnow Your Customer (KYC) procedure for openingaccounts has been simplified.

n Banks have been asked to consider introduction of aGeneral Purpose Credit Card (GCC) facility up to Rs.25,000/= at their rural and semi-urban branches. Thecredit facility is in the nature of revolving creditentitling the holder to withdraw up to the limit

Based on assessment of household cash flows, the limitsare sanctioned without insistence on security or purpose.

Adoption of Districts for 100% Financial Inclusion

The State Level Bankers Committee (SLBC) identifies onedistrict for 100% financial inclusion. Responsibility is givento the banks in the area for ensuring that all those whowanted to have a bank account are provided with one byallocating the villages among the different banks. Bank staffor their agents who are usually local NGOs or villagevolunteers contact the households at their doorsteps. Insome cases banks have provided, in association withinsurance companies, innovative insurance policies ataffordable cost, covering life disability and health cover.

Use of Intermediaries as Agents in Microfinance

The Reserve Bank permitted banks to utilize the services ofnon-governmental organizations (NGOs), micro-financeinstitutions and other civil society organizations asintermediaries in providing financial and banking servicesthrough the use of business facilitator and businesscorrespondent (BC) model.

Use of ICT Solutions for Enhancing Outreach of BanksThe Reserve Bank has been encouraging the use of ICTsolutions by banks for enhancing their outreach with thehelp of their Business Correspondents.

Mobile phones have also been developed to serve as cardreaders. Account holders are issued smart cards, whichhave their photographs and finger impressions.

Financial Literacy and Credit Counselling

n Each SLBC has been asked to set up a credit-counselling centre in one district as a pilot and extendit to all other districts in due course.

n A Centre for Financial education & Excellence hasbeen set up in RBI's College of Agricultural Banking inPune.

Bangladesh Scenario

n The approach to Financial Inclusion in developingcountries such as Bangladesh is somewhat differentfrom the developed countries. In the latter, the focus ison the relatively small share of population not havingaccess to banks or the formal payment system.Whereas in BD, we are looking at the majority who areexcluded?

n A simple yardstick to measure the degree of access tothe financial services is the number of depositaccounts as a ratio to population.

n In BD context, the ratio of deposit accounts as on 30thJune 2008 was 26% and the ratio of advancesaccount was 6%.

n It may be mentioned that in terms of opening bankbranches, it has been made mandatory that one in fivebranches must be in rural areas to encourage bankbusiness there.

n But the capacity of mobilizing savings and disbursingloans in the rural areas is very poor in spite of theexistence of 58% of total bank branches in that area.

n The shares of rural bank branches in total depositsand advances were 13% and 8% respectively as ofJune 2008 which indicates a very low exposure ofrural people to the formal banking system.

n Microcredit Programs (MCPs) in BD are implementedby various formal institution (state owned commercialbanks and specialized banks), specializedgovernment organizations and non-governmentalorganizations. The coverage of MCP is approx. 33.0million borrowers while near about 90% of the clientsof this sector are female.

n In BD, financing SME from banking sector is a longstanding demand that has been high on the agenda ofthe economists and the policymakers. Despitesignificant improvement in SME resulting from thepriority given to the sector with the government'spoverty reduction agenda and recognizing it as athrust sector, increasing the access of the SME sectorto required finance till faces several challenges.

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n The current level of support is not adequate and thesector needs resources to support new and potentialSME.

n Recently BB has taken some measures (such asenlarging the refinance fund, fund allocation forwomen entrepreneurs, encouraging banks forpartnering with NGO and MFI and opening of SME /agricultural branches) to increase the access ofentrepreneurs of SME to banking services.

n The recent measures of BB as setting up a highest sofar target for disbursement of agriculture credit,arrangement of first ever credit allocation forsharecroppers and allowing farmers to open bankaccount relaxing KYC without any requirement forminimum balance and charges, will go a long way fordriving the rural and agriculture sectors towardsinclusive banking.

n International experiences show that the scope offinancial inclusive can be expanded in two ways:

a. Through state driven intervention by way of statutoryenactments and

b. Through voluntary effort by the banking community.

n The policies and measures which have beenundertaken so far in Bangladesh for achieving

financial inclusion are of course essential, but stillinadequate.

n Therefore, it is imperative to design a comprehensivefinancial inclusion strategy for inclusive andsustainable growth of Bangladesh.

References

1. Inclusive banking/Financial Inclusions: Issues,International Experiences and Bangladesh Status byDr. Toufic A. Choudhury.

2. Inclusive Growth/Sustainable Development by Dr. QaziKholiquzzaman Ahmed.

The author has joined a workshop on “Inclusive Banking:A Means for Sustainable Development” arranged by

Bangladesh Economic Association, Dhaka. This article is

just to share the ideas of the workshop about the new

concept-Inclusive Banking.

Habibur RahmanEVP & Head of International DivisionPrime Bank Limited, Head Office

An investment banker I know was sitting in the lobby of a San Francisco hotel when

she saw a familiar face nearby. She was sure he was a former client or colleague, so

she started walking over to him. Just then, Henry Kissinger, the former U.S. secretary

of state, strode in and took the seat my friend was about to occupy. She was saved.

She had planned to open the conversation with Helmut Schmidt, the former

chancellor of West Germany, by asking: "Didn't we work together at Chase

Manhattan Bank?

Corporate Jokes

25

Customer Relationship Management (CRM) is anindispensable dimension for any business, especially retailbusiness which is not yet professionally applied by our localoperators. The reasons behind are, we have just startedRetail but it has not played as vibrant portfolio in ourbalance sheets and we observe that market is very large sowe feel comfortable to continuously penetrate the market.The difference between retail and other business is, actualprofit in retail is received after satisfactory performanceover a long period of time, which is uncertain. Wefrequently say that retail is a number game, the more is thenumber, the more is our success. It is quite correct.

But when we talk about business, we have to keep manythings in head. The best policy is going ahead and lookingbehind. Is it not better, if we pick-up existing customeragain and again for different loan products one afteranother? The more good numbers we can pick up, thecleaner portfolio will get into balance sheet. So it is correctRetail is a number game but we can say it is good numbergame means our objective shall be to add good borrowersinto retail portfolio together with going forward with newborrowers.

Because, if we move forward with considering numbersonly, our profit will be eaten up by NPL (Non PerformingLoan) and productivity will go down for duel effect (i) HigherDirect Marketing cost and (ii) Higher monitoring costresulting into higher NPL.

At the end, we have to do business; if our cost of doingbusiness is higher we cannot sustain in long run.

In the manufacturing concern, the marketing activitiesstarts long before its production and it remains as usualeven after shut down of operation. Because relationshiphas a beginning but does not have an ending.

It is difficult to calculate sales output out of CRM in numericterms but its affects on company’s sales and performancein long term can be measured through period-to-periodperformance parameters comparison. One conception isalways absent in our mindset when we sell a loan productthat we purchase “customer satisfaction” in return as a by-product. The term purchase is correctly used in a salestransaction because in real life we procure asset out ofmoney, similarly customer satisfaction is also true asset forthe company. A satisfied customer takes another loan andact as our voluntary spokesman.

Customers do not forget anything. When a shopper sells aproduct, would not his/her presentation remain in

customer’s mind during his/her next purchase transaction?It means that quality of product is not within the productonly but is the summation of number of extra factorsincluding presentation and dealings of shopper with thecustomers. I used the word “extra” because these areexternal to product performances. Sometimes the extrafactors become dominant even shoppers have a superiorquality product.

Customers do not expect to be remembered by the sellersbut if they notice that shopper gave them value even afterpost-purchase stages beyond their expectation, theybecome delighted and feel the thrill to make the nextpurchase transaction with the same shopper. Once adelighted customer meets the shopper, what are thechances, transaction shall not happen and customer willswitch to others? According to my judgement the answer is0%. It means CRM successfully worked on the customer.It is the objective of CRM to satisfy and delight all theexisting customers.

We frequently hear the words; “After Sales Service” isavailable. It is available basically against electronics ormechanical goods but in regards to service organization orother than such products, how a company would get touchof its customers when after sales service is not required asper product characteristics. It will be discussed later.

There are no definite tasks or guidelines by which one canmaintain relationship with one’s customers. But it is acontinuous process and outcome of total team effort of anyparticular company. A company must put CRM as integralpart in its value system. So, it is a top-down approach.Before one decides to implement it one must do cost-returnanalysis to measure its viability. Earlier, it was told that it isvery difficult to calculate CRM sales outcome. Both aretrue. Somebody may be misled by thinking that CRM is notrequired in initial stages of operation because it might costhigh to the company during beginning stage but surely, itwill be earnestly felt in later periods of operation but at thattime the job become very complicated and productivity ratiobecomes poor. The outcome becomes visible after theintroductory stage of a company. True business remainseven stronger position in decades after decades; centuriesfor centuries which is possible when a company movesforward in planned way and work today according to whatwill happen in future.

“Sustainability” is a well told terminology in business, whichis as we say “sustainable business”. This word has someinner elements: continuous growth, long-term presence,socially, environmentally and economically viability and

CRM: Indispensable but Unexplored Dimension of Retail Business

26

managed risk factors of business. For a manufacturingconcern, if a company succeeds in selling products throughcontinuous repeat sale by making each customer loyal, itwould definitely do the correct things to beat itscompetitors. Practically it is impossible but if it is targetedand done accordingly to retain customers with propermindset, 50% customers will have been retained at initialstage. Generation of revenue from existing loyal customerwill keep the total company sales always moving even inbad days. Those customers will also create customers bytheir words of mouth.

In Bangladesh, all commodity-product selling companiessell products and give promotion but no one give directionto its best seller agents towards “Complete CustomerRetention Program” to the best of my knowledge. Usuallyagents feel less discouraged to invest on it because thereis no direct earning. A conglomerate cannot run withoutselling products to its distributors and distributors cannotrun without end-users. So retention of customers bydistributors is vital for existence of even conglomerate.How to make relationship with them through differentagents is a big challenge towards sustainable business forconglomerate, leaders, followers and market niches.

In such processes of work the company will attainsustainable growth. For sustainable growth a companyneed to focus in following two aspects:

(i) Continuous Sales growth(ii) Reducing cost of doing business

CRM can play important role on both the aspects. It isbasically generation of sales from existing sourcescontinuously and reaching towards potential customers.Here, advantage of a company is that it can identify itscustomers, their movement and also can measure theirsatisfaction. On the other hand the cost of CRM is cheaperto direct marketing cost considering same volume of sales.In retail lending institution difference in cost is simply eye-catching for two reasons:

(i) Low percentage of NPL, far below standard rate beingall are tested good borrowers or referred by them.

(ii) Absence of direct marketing cost

Having “Competitive Advantage” is a compulsoryrequirement of today’s business. It has to react fast andpro-actively with market changes. If a company practisesCRM professionally, it can be pro-active in the market andcan guide the market sitting in the leadership position.Because customers will believe that they own the companyand they will provide information at their own initiativeswithout any additional cost to the company.

So, we have seen CRM will hit in profitability of a businessby the way of not only by increasing sales but also bylowering cost of business. Think, when a company launcha new product it will get ready customers through CRM.Again, for start of a diversified business of an institution,CRM will give successful ceremonious inauguration.

Definition of marketing evolved in the passage of time. If welook into chronological definitions of marketing we shall findthat background of the changes is: competition in themarket and responsibility of human being towards themankind. If we consider CRM activities, we would find thatit will give a company a competitive edge because acustomer has the option to switch over to others silently buta loyal customer will not move anywhere. In terms ofresponsibility to human being, we see if a company is morecaring to its existing customers it is more responsive.

CRM is a comprehensive approach which is to be practisedby full team of the management. In a service organization,if your initial treatments with the customers aretroublesome to them, CRM will not work. The mostimportant is that we have to maintain at least standard levelof service in all steps of direct customer interaction orindirect customer interaction where their interest isdirectly/indirectly affected. In some areas, we have to beabove Industry Standard Level so that we can makecustomers satisfied or delighted. The customers whoseexpectation level is low will be delighted and others will besatisfied. It is basically pre-requisite for effectives of CRMeffort. When a customer will come or enter into the system,all possible information must have to be obtained tactfullywithout interruption because he will not come again to giveinformation or will be irritated if asked for any personalinformation over phone. It is better to start CRM effort witha customer in a happy mode with a service not expected byhim but not asking about his personal information. Supposea Home loan lending institution may call to its customerswho availed loan 5 years back for any requirement ofrenovation of flat/home. A special gift may be given to eachflat loan customer that will be kept by him in his house longtime, say “Mr. Ernold, Flat No. B.”. It can be replaced aftercertain period of time.

The gas cylinders installed in our vehicles may blast afterits expiry and can make casualties. A CNG conversationCentre may maintain database of all customers and maycall them before expiry of equipments installed earlier toreplace the calendar and others after expiry for their safetyand security. That particular company will be focus onsocial responsibility and business will automatically begenerated because customers will prefer his existingcompany as well as life saver informer first.

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“Warranty” is established marketing tool of today’sbusiness. It is given become to keep customers satisfied.Excelling companies give after sales service even afterwarranty period for getting preference in customer’s mindin the next purchase decision. It is applicable forcompanies who sell products to customers but for serviceorganization, there is nothing to give as “after salesservice”. So, reaching customers continuously is a bigheadache. It is really a great challenge for service sector.Service sector must adopt “Total Quality Management”approach in service delivery and must take required datatactfully in happy mode during the process of interactionand would keep it.

What types of data will be taken out of customers will varyfrom service-to-service and product-to-product andcompany-to-company. The institution will have tocategorize target customer in various groups. Each groupwill be asked different questions according to groupcharacteristics and be treated differently.

Before starting of a company, parameter of CRM will haveto be determined because each customer is vital, thereforewhen a customer is missed may not enter into CRM net ofa company in future. There is a proverb “Slow and Steadywin the race”. If a company moves with professional CRM,its growth sometimes may be seen below others in themarket but its profitability will be higher. The sales growthwill be steady and ultimately the double effect will make thecompany success and ahead of its competitors.

In small lending institutions, CRM may play vital role ingenerating sales at “0” NPL level. Because a borrower whoadjusted a loan was sanctioned another loan or a borroweris sanctioned another loan in addition to existing oneconsidering his/her requirement and sufficient cash flow.We have told that reducing cost of doing business is veryimportant. NPL eats up income, so through CRM it can bekept lower.

In retail business, CRM has major role in generatingbusiness at lower NPL and without direct marketing cost.Retail focused on the personal need of a customer. Retailoperators basically enhance purchasing power of anindividual and enable him/her to purchase a product forupgrading lifestyle. Sometimes, it is taken for meeting upany other personal need of a customer.

Customer need never ends. It widens with the rise ofpurchasing power in the passage of time. Suppose, aperson may take marriage loan when get married, may bepotential for car loan after 3-4 years of marriage and homeloan after 8-10 years of service, then after 5-6 years homerenovation etc. Retail products are designed targetingcomplete lifecycle of an individual. So CRM has vital role to

ride on customer in all future loan decisions during lifetimeof an individual. Because an unsecured borrower maychoose another bank for other loan. Even a borrower ofmortgaged loan may take unsecured loan from otherbanks.

The retail operators usually collect business throughcontractual employees incurring salary and commission onincremental sales. But if we generate business out of CRM,we may avoid direct marketing cost of the institution.

CRM can be done in various ways. But to make any stepsof CRM successful, the customer information shall beavailable at one click which may be categorized accordingto user need. Some examples have been sited below.

An institution may categorize customers in age groups inthe following manners. Assume total number of customersas 50,000.

Between Number of Customers Next Target

21-25 5,000 Car Loan

26-30 15,000 Car Loan & Home loan

31-35 12,000 Car Loan & Home loan

36-45 10,000 Car Loan & Home loan

46-55 4,000 Car Loan & Home loan

56-65 4,000 Home loan

We may also categorize customers according to incomegroups, educational status, employer status, residentialstatus, personal net-worth status etc to determine mode ofcommunication, promotion etc.

Target can be achieved through two sources:

(i) New customer through direct marketing effort(ii) New loan through CRM activities

The higher portion of business is generated through CRM,the lesser will be cost of doing business for the bank and itwill also inherit lesser risk of default.

CRM may work for generation of new customer. Thepurpose of a business is to create and keep a customer.New customer CRM may also generate fresh customer forthe company. We can do it through corporate alliance andclosely monitor and evaluate their performance. CRM maywork with other government, semi-government,autonomous and private institutions. We may collectBureau of statistics and other available data and analyzethem for management business penetration decisionmaking.

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Therefore, a business organization may diversify sourcesof business in following three categories:

(i) Direct marketing Business

(ii) CRM Business (Existing Customer)

(iii) CRM Business (New Customer)

The objective of the diversification is to do “sustainablebusiness” which gradually reduces cost of operation,dependency on outsourced people, NPL ratio andmaintains steady sales growth.

So, we see cost of business procurement through CRMactivities is cheaper to other methods. The comparison ofbusiness procurement cost has been depicted in thefollowing table:

Amount in Lac Taka

Head Direct Dual Method (Direct Marketing + CRM)Marketing Direct CRM Total

Marketing

Business Procurement 5000.00 3000.00 2000.00 5000.00

Business procurement Cost 50.00 30.00 10.00 40.00

Cost Comparison 50.00 40.00

Cost saving in Duel method 60.00 – 40.00 = 10.00/month

We have ignored cost of NPL, the rate of which shall bemuch lower than bank average. So, CRM is not only a tollfor business cost saving but also an effective method forreaching towards good pay masters in retail.

In the subject, the term real is used for the two reasons

I. CRM will generate new customers from exitingsources even in bad days at lesser cost.

II. Quality of borrowers will be far better than that ofdirect marketing effort because those borrowers aretested or referred by tested borrowers resulting intolower NPL

If we want to be market leader, we have to be creative inapproach, techniques not only in customer hunting but alsoin loan booking at cheaper cost.

Through CRM, institution is protected in competitionbecause it maintains its cost lower than others andcontinuous effective and quality sales.

Presently, CRM is not practised by retail operators inBangladesh in professional way. There is a misleadingunderstanding that CRM is a function of IT. But it is acompletely marketing job with use of IT technology formaintaining customer data base. As relationship is vital infamily and even in service organization, when it works,other things in regards quality of product and service getless priority. CRM is nothing but paying attention towardsour customers to make them understand we areresponsive to them and they are into our centre of allbusiness. One cannot purchase a relationship but it worksin stronger ways if it is maintained. It is an innovativebusiness tool which will differ organization-to-organization.The main objective of CRM is to keep in touch with thecustomers.

Presently, most retail operators started liability marketingthrough which everybody col feels sales pressure andsearches new customers only, for which cost of doingbusiness and non-performing loan ratio will be higher.Without CRM complete relationship with entire banking andfinancial solutions to customers will not be established.Retail is good number game. When customers out of CRMare added number turned into “good number”. Absence ofCRM, specially in retail is everything contrary to“sustainable business”.

Md. Mashiur RahmanSenior Vice President and

Head of Retail Banking Division

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Photo Album

Prime Bank Chairman Azam J Chowdhury handing over the cheque ofTk.2.5 million to Prime Minister Sheikh Hasina as donation to the PrimeMinister’s Relief Fund for the Nimtoli and Begunbari tragedy victims on 22ndApril, 2010.

The Prime Minister, Sheikh Hasina receives a cheque of Taka One Crorefrom Prime Bank Chairman Azam J Chowdhury at the Prime Minister’sOffice in Dhaka recently for the construction of Liberation War Museum.Finance Minister AMA Muhith, Bangladesh Bank Governor Dr. Atiur Rahmanare also seen .

Mrs. Hasina Khan, Vice Chairperson, Executive Committee of Prime BankLimited inaugurated 6th SME Branch on 2nd June’10 at Bhujpur, Fatickcharias a chief guest. Md. Nader Khan, Former Director of the bank was presentas special guest. M. Ehsanul Haque, Managing Director was also present onthe occasion.

Azam J Chowdhury, Chairman of Prime Bank Limited inaugurated theGround Breaking Ceremony of the ‘Prime Tower’ and laid the foundationstone of the same, in Nikunja Commercial Area as the chief guest on 22ndSeptember, 2010. Quazi Sirazul Islam, Vice Chairperson, Capt. Imam AnwarHossain, Chairman, Executive Committee, Directors- Mohammad AminulHaque, Md. Shirajul Islam Mollah, Manzur Murshed and Former Directors-Md. Shahadat Hossain and M. A. Wahhab and Md. Mehmood Husain,Managing Director (Current Charge) of Prime Bank also present on theoccasion.

Marina Yasmin Chowdhury, Former Vice Chairperson of Prime Bank Limitedinaugurated the 15th Anniversary function by cutting a mega cake. NasimAnwar Hossain, Former Director of the Bank and Asma Banu, wife of PBLManaging Director were also present.

Prime Bank Limited opened its 85th Branch at Pabna on 30th May, 2010.Quazi Sirazul Islam, Vice Chairman of the Board of Directors of Prime BankLimited inaugurated the Branch as Chief Guest. M. Reazul Karim, DMD, Md.Monawar Hossain, SEVP and Md. Omar Kabir, VP was also present alongwith local elites.

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Photo Album

Prime Bank Captain Cup Golf Tournament-2010 was inaugurated on Friday, 3rdDecember, 2010 at the premises of Kurmitola Golf Club by Lieutenant General AbdulWadud, ndu, psc, Principal Staff Officer of the Armed Forces Division as the chief guest.Prime Bank Chairman Azam J Chowdhury, Acting Managing Director Md. MehmoodHusain were also present in the occasion.

Quazi Sirazul Islam, Vice Chairman of the Board of Directors of Prime Bank Limited isgiving away the certificate to Shamim Ahmed for holding the 1st Position in the 44thFoundation Training Course held in Dhaka recently. Managing Director M. EhsanulHaque and Head of HR & Corporate Marketing Division, Senior Executive Vice PresidentMd. Tabarak Hossain Bhuiyan of the Bank were also present on the occasion.

Prime Bank Limited launched its SMS Banking Service on August 9, 2010. The Minister forPosts and Telecom Rajiuddin Ahmed Raju was the Chief Guest; while Secretary to the sameministry Sunil Kanti Bose and the managing director of Tele Talk Md. Mujibur Rahman werepresent as the special guests. The launching program was presided over by M. EhsanulHaque, Managing Director of Prime Bank Limited. Among others DMD of the Bank AhmedKamal Khan Chowdhury and Head of IT & EVP Md. Iqbal Hossain were also present.

Marina Yasmin Chowdhury, Former Vice Chairperson of Prime Bank Limited inauguratedthe Manchester Branch on 4th August as chief guest. Mr. Iqbal Ahmed OBE, Chairman,British Bangladesh Chamber of Commerce & Seamark Group was also present on theoccasion as a special guest. Azam J Chowdhury, Chairman, PBL Exchange (UK) Ltd. &Prime Bank Limited with the Members of Board of directors and other high officials ofPrime Bank were also present at the occasion.

Dr. Atiur Rahman, Governor, Bangladesh Bank distributed cheques to the students as the chiefguest at the award giving ceremony organized by Prime Bank Foundation on 7th August, 2010 atLGED-RDEC Bhaban, Dhaka. Educationist Professor Abdullah Abu Sayeed and Azam JChowdhury, Chairman, Prime Bank Limited & Foundation were present as special guests. Amongothers Capt. Imam Anwar Hossain, Chairman, Executive Committee, Prime Bank Limited, FatherBenjamin Costa, Principal, Notre Dame College, Md. Mehmood Husain, Deputy ManagingDirector of the Bank and Dr. Iqbal Anwar, Chief Executive Officer, Prime Bank Foundation werealso present on the occasion.

Major General Ashraf Abdullah Yussuf, rcds, afwc, psc General Officers Commanding, 9Infantry Division and Senior Vice President of Savar Golf Club (Chief Guest) andDirectors Mrs. Meherunnesa Haque & Ms. Shaheda Parvin Trisha and Managing DirectorM. Ehsanul Haque of Prime Bank Limited (Special guests) pose for photograph alongwith participants of Prime Bank Cup Golf Tournament 2010 at Savar Golf Club Househeld on the evening of 29th May, 2010.

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Photo Album

Managing Director of Prime Bank Limited M. Ehsanul Haque receiving the award of “BestBank” from the Finance Minister & Chief Guest of the prize giving ceremony AMA Muhithon 19th December, 2010 at a city hotel.

Chief Financial Officer of Prime Bank Limited Ahmed Kamal Khan Chowdhury receivingthe awards of “Best Bank” and “Overall Winner” from Surendra Pandey, Finance Ministerof Nepal at a function in Kathmandu, Nepal on 12th December, 2010.

Chairman of the Executive Committee of Prime Bank Limited Captain Imam AnwarHossain donated a check of three lac taka to the famous singer and youngest vocalartiste of the then Swadhin Bangla Betar Kendra, Cancer patient Bipul Bhattacharya forhis medical treatment on behalf of the Bank. M Reazul Karim, Deputy Managing Directorand Ferdousi Sultana, SVP were present at the moment.

Prime Bank Limited inaugurated three money transfer branches in UK under the name of PBLExchange. Three branches were opened in London (Brick Lane), Bermingham (CoventryRoad) and Manchester (Oldham) on 2 ,3 and 4 August respectively. Prime Bank ChairmanAzam J Chowdhury inaugurated the Brick Lane, London Exchange House on 2 August, 2010.

Azam J Chowdhury, Chairman, PBL Exchange (UK) Ltd. & Prime Bank Limited inaugurated theBirmingham Branch on 3rd August as chief guest. Faisal Ahmed, Assistant High Commissioner,Bangladesh Assistant High Commission, Birmingham, UK was also present on the occasion asspecial guest. Members of Board of directors and other high officials of Prime Bank with elitepersonalities of UK were also present at the occasion.

A Press Conference was arranged by Prime Bank Limited at a local hotel of the city on24th July, 2010 on the eve of launching new software named “Remit Fast”. The ManagingDirector of Prime Bank Limited M. Ehsanul Haque, M.Reazul Karim–Deputy ManagingDirector, EVP and Head of IT Md. Iqbal Hossain and Ferdousi Sultana – Senior VicePresident were also present on the occasion.

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Photo Album

Dr. Atiur Rahman, Governor of Bangladesh Bank distributed Agriculture loan to 204farmers at the field of Natua Para Abdul Gafur Memorial Primary School in Jessore on23rd October. M. Ehsanul Haque, Managing Director of Prime Bank Limited presidedover the ceremony. Deputy Managing Director of the Bank – I B Chowdhury and GM ofBangladesh Bank - M. Moniruzzaman were present at the occasion.

A grand reception was organized by Prime Bank Limited at the Westin Hotel in honor ofthe visiting President of CPAFFC (Chinese People’s Association for Friendship withForeign Countries) and Leader of the Goodwill Delegation, H.E Chen Haosu on 15thOctober, 2010. Prime Bank Chairman Azam J Chowdhury presented crest to thePresident of CPAFFC.

Prime Bank Limited signed a participation agreement with Bangladesh Bank for availingrefinance facilities for the SME sector of the country under SME Development Project(SMEDP) taken by the Govt. of Bangladesh on Monday, 15 November, 2010 atBangladesh Bank premises. Bangladesh Bank General Manager of SME and SpecialPrograms Department Sukamal Sinha Choudhury and Prime Bank Managing Director(Current Charge) Md. Mehmood Husain signed the agreement on behalf of theirrespective sides.

Prime Bank participated in the SME fair organized by Bangladesh Bank on 27th November,2010. Dr. Shirin Sharmin Chaudhury, State Minister for Women & Children Affairs Inauguratedthe fair as the Chief Guest and handed over a check of Tk. Five Lac at the occasion to awomen entrepreneur financed by Prime Bank. Present at the occasion as the special guestswere Dr. Atiur Rahman-Governor of Bangladesh Bank, Aftabul Islam, FCA-Chairperson ofSME Foundation and Shykh Seraj-Director and Head of News, Channel-i.

Dr. Atiur Rahman, Governor, Bangladesh Bank visited London recently. During his visit he visitedLondon Branch of PBL Exchange (UK) Ltd, a fully owned subsidiary of Prime Bank Limited,Bangladesh in UK. M. Ehsanul Haque, Managing Director of Prime Bank Limited is seenpresenting a crest to Dr. Atiur Rahman. Isbahul Bar Chowdhury , Deputy Managing Director ofthe Bank and ABM Kamrul Huda Azad, Operations Manager, London Branch, PBL Exchange(UK) Ltd were present on the occasion.

Prime Bank Limited has donated Tk. 50 Lacs to the National Heart Foundation Sylhet tosupport the purchase of equipments of the Cardiac Hospital. Md. Mehmood Husain-Managing Director (Current Charge) handed over the check to National Professor Brig.(Rtd.) Abdul Malik-Advisor and Founder Secretary General of Bangladesh HeartFoundation, on 25 November, 2010 at the Bank Premises.