Competitive Advantage Through Market Orientation

The word “bank” refers to the financial Institution that deals with money transaction. Commercial banks are the primary contributors of the economy of this country. On one hand, they are borrowing money from the locals and on the other hand lending the same to the locals as loans and advances. So the people and the government are very much dependent on banks. Moreover, banks are profit-earning concerns, as they collect deposits at the lowest possible cost and provide loans and advances at higher rate. The difference between two is the profit for the bank.

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Introduction At the instance of Army Welfare Trust The Trust Bank was incorporated as a Public Limited Company under the Companies Act, 1994 on June 17, 1999 to carry on all minds of banking business in Bangladesh. After obtaining license from Bangladesh Bank on July, 1999 the Bank commenced its banking operation on November 29, 1999. In the year 1999 Trust Bank Limited emerged as a private commercial bank in the banking arena of Bangladesh with a vision to meet customers’ expectations to a bank. At the same time It would develop Itself as the bank of choice through services and trust.

Private operated owned public commercial national Bank in Bangladesh. Giving deferent services to their clients like savings and current bank account with low service charge. SMS, mobile, online Internet banking to get the financial statement, SWIFT code and pay utility bills for you and your company. Objectives Of TAB and innovative banking services to the people of all sections of our society. One of the notable strengths of this bank is that it is backed by the disciplined and strongest Institution of Bangladesh I. E. Bangladesh Army and there is a synergy of welfare and Profits in the dynamics of this institution.

Bank is service-oriented industry and we on our part are committed to ensure customized, qualitative and hassle free services in our banking operations along with the focus to broaden the clientele base. The bank has extensively in the country’s industrial and agricultural sectors in the coming days. The bank is committed to contribute as such as possible within its limitations for the economic growth and for ensuring value of its available resources. Trust Bank announced its mission to make banking easy for its clients. That is why it started one- stop service for the clients.

As a part of the mission it supports the community it works in, to develop entrepreneurship and thus to help national economic growth. Major activities The major activities of TAB may be classified under the following heads: ; Personal Banking ; Business Banking ; Merchant Banking ; International Banking Automated Banking Personal Banking Trust Bank provides all personal banking services like Current account, Savings account, and Fixed deposit. In addition it presents quite a good number of products for the customers.

These are: ; Trust Whiteboard Trust Amoebae Trust Assurance Trust Maximal Trust Echo Short Term Deposit Trust Smart Savers Scheme Trust Money Making Scheme Trust Educate Scheme ; Monthly Benefit Deposit Scheme Locating Savings Scheme Most of the schemes are designed to encourage you to save. The benefits are competitive. Trust Whiteboard and Trust Amoebae are not two schemes; these are rather clusters of schemes for students and women. Monthly benefit deposit scheme is targeted to elderly citizens to deposit a substantial amount at a time and to get a return every month.

Trust assurance is an extraordinary savings scheme having an insurance facility incorporated with it. TAB presented credit card service for its customers. The cards of different categories, such as local, international, and dual radar are available with varied and attractive facilities. Business Banking sectors of business in the country. It provides loan for corporate business, syndicates for large projects, and assists Seems. The loans for corporate clients are to meet different needs of the businesses. Some of them are procurement of fixed assets and machinery, working capital etc.

TAB may arrange syndication for you and it also participates in syndication. Seems are playing a very affective role in enhancing economic growth and creating employment. Trust Bank is very correctly addressing the sector to finance deserving candidates. TAB extends loans to Seems of the following trades: ; Trust Flan Agric-Business Entrepreneurship Development Light Engineering Poultry Farming Shopkeeper Peak season Women Entrepreneurship Thus Trust bank tries to assist most of the small and medium size business people including women entrepreneurs. The terms and conditions are favorable and friendly for the people.

Merchant Banking Merchant Banking functions performed by TAB are Issue Management, Underwriting, and Portfolio Investment Management. All these activities are related to capital market development. Through these banking activities the bank is working to establish a strong capital market. International Banking Trust Bank provides all banking services to export and import businesses of Bangladesh. The bank maintains an extensive correspondent network around the globe to serve you wherever you need its assistance. For nonresident Bangladesh it presents easy remittance service.

Further to that you may have a foreign currency account if you are an expatriate. As a wage earner you may purchase Wage earner’s Development Bond from here. People willing to travel abroad may have foreign currency endorsement and Travelers Cheeses from here. This bank deals in foreign irenics and encase travelers cheeses. Islamic Banking Trust Bank has developed Sarah compliant banking facility for the clients. A powerful Sarah Council constituted by eminent Islamic scholars verifies all the services and products for concurrence with Sarah before marketing any.

Islamic banking service of TAB provides deposit, loan, investment, and trade products. Automated Banking TAB is committed to serve its clients fast and in the best possible way. So it had introduced internet banking, phone banking and SMS banking in the first chance. Debit card service is another exceptional product of TAB. Trust Bank Limited is proceeding forward to the ultimate goal of steady growth and prosperity for all its stake holders and also for the nation. Research Methodology For preparing this paper, I have used both Secondary and Primary data. Aeries from the executives while doing surveying the different departments of the Bank. It includes: 0 Scheduled survey 0 Observation while working in different desks & 0 Informal discussion with professionals. Collection of Secondary Data: Data regarding the Credit operations and Performance Evaluation of The Trust Bank Ltd. Were collected from secondary sources like: Annual Reports, 0 Brochures, Manuals and Publication of The Trust Bank Ltd. , 0 Bangladesh Bank Library, 0 IBM Library, DES Library, News paper etc. Were the major sources of secondary data.

Limitation of the study: The main problem faced in preparing the paper was the inadequacy and lack of availability of required data. This report is an overall view of Credit Operations of The Trust Bank Ltd. But there is some limitation for preparing this report. Firstly this bank is very new so they do not have enough data, that’s why I did not make vast compare this bank with other banks. Secondly when I was doing his then there internal and Bangladesh Bank auditing is going on that’s why I did not get the after closing data. With all of this limitation I tried my best to make this report as best as possible.

Literature Review: Reviewing Literature we can see that TAB performing their operations since 1999 to make banking easy for its clients. Findings Branch Network of TAB: During the year the bank has opened 06(six) branches, which raised the total number of branches to 71 . The bank has already taken steps to open 09 (nine) more new branches. Utilization of Fund: As a private commercial bank, TAB has some inherit commitments o its society. By utilization, the fund from the embroiled deposit TAB is fulfilling its commitments, which can gear up the economic activity.

TAB has been extending credit facilities to the potential, productive & priority sectors as per instruction from Bangladesh Bank. For a bank, good loans & advances are most profitable asset. A big portion of operating income is derived from lending. This activity is done by the loans and advance department. Surplus deposits and these deposits are invested in trade, commerce and industries in the from of Loans & Advances to earn profit. Apart form earning profit, by lending o priority sector, bank also helps country’s economic development.

Lending activities of the commercial banks are two natures: 0 Continuous Credit. 0 Term Loan. [A] Continuous credit: Trust Savers Current Deposit Account Savings Deposit Account Fixed Deposit Scheme Smart Savers Scheme Trust Money Double Scheme Trust Assurance Deposit Scheme Trust Maximal Deposit Scheme Trust Stinkpot Scheme Trust Unfixed Deposits Branch Sales Services ; Internet Banking Phone Banking SMS Banking Mobile Banking Western Union Mobile Banking Pay-point List Islamic Deposit Accounts AAA-Howdah Current Account Muhammad Term Deposit

Muhammad Special Notice Deposit AAA-Howdah Term Deposit Muhammad Savings Account Muhammad Monthly Savings Scheme ; Barbara Hajj] Deposit Scheme [B] Term Loan: o Project loan o House building loan o Packing credit o Loan against Imported Merchandise (LIME) o Transport loan o Lease Finance o Payment Against Documents (PAD) Trust Bank’s Special Credit: It’s based on the common credit requirement of the society. Besides, these products have expanded the Bank with diversified source of income. These are: small Business loan o Personal loan o House Renovation loan o Consumer finance o Festival business loan o Festival personal loan

Modes of credit: credit and be categorized according to the nature and modes of payment. Term wise classification: Short term (within one year) Mid term (within five years) Long term (more than five years) Nature wise classification: Loan: fixed in nature, for a particular term or time. Advances. Purpose wise classification: Working capital Fixed Asset finance Sector wise classification: Commercial Lending; for commercial requirements except export. It is for short and medium form of loan. For instance: LIME, LTR, PAD, SOD, Cash credit, General Loan. Industrial credit 0 Agriculture credit 0 Transport credit 0 House building loan. Lending Authority: The lending officers are broadly categorized as follows – Managing Director Deputy managing Director Executive vice president Senior vice president Vice president Senior assistant vice president Assistant vice president Sanction of credit: When a Branch Manager writes a letter to accepting all terms and conditions of loan, it is called loan sanction. After the completion of all the formalities of financing a loan proposal, an advising letter is sent to the customer for the credit facilities along with all terms and conditions.

The conditions, which are included in the loan sanctions are given below: o Limit o The rate of interest Collateral securities Expiry date Repayment. Foreign Exchange: Foreign exchange is a process, which is converted one national currency into another and transferred money from one country to other countries. Foreign exchange is the rate of exchange in the both country’s currency. In TAB, the foreign exchange department has two sections are: o Import section o Export section Function of Foreign Exchange: The bank act as a media for the system of foreign exchange policy.

For this reason, the employee who is related of the bank to foreign exchange, specially foreign business should have knowledge of these following unction’s- o Rate of exchange How the rate of exchange works Forward and spot rate Methods of quoting exchange rate. Premium and discount Risk of exchange rate Causes of exchange rate Exchange control Convertibility Intervention money Foreign exchange transaction Foreign exchange trading Export and import letter of credit Non-commercial letter of trade Financing of foreign trade. Nature and function of foreign exchange market.

Rules and Regulation used in foreign trade. Exchange Airtime. Application for Opening LICE: At first, an importer will request banker to open L/C along with the following documents – 1. Indent Invoice . Import Registration Certificate ORCA) 3. Taxpayer Identification Number (TIN) 4. Insurance cover note with money receipt 5. A bank account. 6. Membership of chamber of commerce L/C Application: TAB provides a painted form for opening of L/C to the importer. Importer’s Application for L/C Limit/Margin: To have an import L/C limit, an importer submits an application to TAB. Is a sort of security for the LLC purpose.

Usually the margin varies from importer to importer. Generally a regular importer enjoys a lower margin facility from 10%-20% and for a new customer of the bank the margin may be Transmission of L/C: The ways of transmission of L/C are as follows – I) Through SWIFT it) Through Telex iii) Through DHAL or FEEDS ‘v) Through Emergency Mail Service (MESS) Back to Back or Countervailing Credit: The beneficiary of a documentary credit may, for the purpose of fulfilling his obligation under the credit, open a counter credit in favor of another party to ship the goods of his purchaser (importer).

SWIFT: SWIFT is highly secured messaging network enables Banks to send and receive fund transfer, L/C related and other free format messages to and from any bank active in the network. TAB Bank is a member of society for inters bank financial electrification Worldwide. It ensures secure messaging having a global reach of 6495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USED 2 trillion.

Form of Letter Of Credit: A letter of credit (L/C) may be two forms. These as below: I) Revocable letter of credit. It) Irrevocable letter of credit. Parties to a Letter Of Credit: A letter of credit is issued by a bank at the request of an importer in favor of an exporter from whom he has contracted to purchases some commodity or commodities. Documentary Letter Of Credit (Import/Export Documentation): Documentary letter of credit is such kinds of commercial letter, which a bank issue on behalf of foreign seller (exporter) according to the direction of the (importers) purchasers.

Payment against Documents (PAD): Banks deal in documents and not in goods. Payment Procedure of Import Documents: Payment procedures of TAB involve the following tasks: (a) Date of Payment (b) Preparing Sale Memo. TAB is the well-reputed and established bank in the private sector. All the branches are computerized and people are getting quick benefit from the bank. Recommendation in respect of those areas. TAB authority among which most of them has been mentioned as suggestion to improve service quality.

For the improvement of the service, the following measures should be taken: Customer’s Convenience: For customer’s convenience, TAB Bank should provide more personnel to deliver faster services to their honorable customer. Human Development: Development of human resources should be ensured to increase efficiency in work. Communication System: Ensure proper communication system and maintenance of file & machineries like phone, computer, fax, and photocopier. Interest: More interest should be paid on deposit account so that customers are invoiced to deposit their money in bank.

Margin Rate: To decrease margin rate for all clients. This is very risk for the Bank but if the Bank wants to target many clients, this is very important Computerizing: To ensure error free fast task bank should be fully computerized. R & D: Research & Development wing must be more extensive & rich. Strategy: Effective strategies must be undertaken against defaulter. Project Management: Project Management must be practiced in case of investing in the project. Feasibility of the project, project planning, monitoring & evaluation should be undertaken.

Managerial Function: TAB Bank must have to follow the management functions (from planning & controlling) strictly in all of their business activities. Conclusion Modem Commercial Banking is exacting business. The reward are modest, the penalties for bad looking are enormous. In addition, Commercial banks are great monetary institutions, important to the general welfare of the economy more than any other financial institution. It has a vastly sobering and exacting responsibility. Trust Bank Limited (TAB) playing a vital role in financing import and exports of the country.

Without Banks co-operation, it is not possible to run any business or production activity in this age. Exports and import need finance in various stages of their activities. Export and import financing are letter of credit (L/C), payment against documents (PAD), loan against imported merchandise (LIME) etc. All these facilities are integrity, liability with the bank term and conditions of the L/C. There is lot of risks involved in foreign business. So, the Trust Bank Limited (TAB) has to clearly Justify the customers from a neutral point and gather the current information about the market.