Prime Bank Limited: The Organization

History of the Bank:

The importance of financial intermediaries in the development of the overall economy of country cannot be described in short. From the inception of the civilization the banking sector dominate the economic development of a country by mobilizing the saving from the general people and channeling those saving for investment and thus economic development and growth.

The importance of commercial banks after the ravage of the liberation war to develop a better economy was severally needed and it is needed now and will be required in future also. In time to time Government of Bangladesh agreed to permit the private commercial banking in the country.

To fulfill the demand as well as to improve the commercial banking service in our country, The Prime Bank Limited is scheduled bank that was incorporated under the Companies Act 1994, started its operation on April 17, 1995 with a target to play the vital role on the socio-economic development of the country. It availed its registration as a banking company under the Banking Company Act 1993 from the Bangladesh Bank dated February 12, 1995. The started to make profit from the inception year. It was made possible for its management and the leadership of the first Managing Director Mr. Lutfur Rahman Sharker, Ex -Governor, Bangladesh Bank.
 
Within a short time the bank has been successful in positioning itself as progressive and dynamic financial institution in the country. The is now widely acclaimed by the business community, from small entrepreneur to big merchant and conglomerates, including top rated corporate and foreign investors, for modern and innovative ideas and financial solution. Thus within this short time it has been able to create an unique image for itself and earned significant solution in the banking sector of the country as a bank with a difference.

The emergence of the Prime Bank Limited is an important event in the country’s financial sector at the inception of financial sector reform. The authorized capital of PBL is Tk. 1000 million and paid up capital of the same bank is Tk. 400 million. The First Chairman of the Bank was Mr. Abdul Gani and the present one is Mr. Md. Mohammad Aminul Hoque. Now the MD of Prime Bank Limited is Mr. Kazi Abdul Mazid followed by the first Managing Director was Mr. Lutfur Rahman Sharker, Ex -Governor, Bangladesh Bank. The bank has made a reasonable progress due to its visionary management people and its appropriate policy and implementation.  The bank holds the first position in the CAMEL rating published by Bangladesh Bank this year.


Vision of the Bank:

“A Bank With a Difference” is the motto of Prime Bank Limited. So the motto itself is self-explanatory to deliver the vision of the bank. Prime Bank limited is prepared to meet the challenge of the 21st century well ahead of time. To cope with the challenge of the new millennium it hired experienced and well-reputed banker of the country from the inception. The bank has efficient and dedicated professionals and equipped with modern technology to provide the best service in the need of the people and thus to realize its vision. So the Bank defined:

Vision: “To be the most efficient Bank in terms of customer service profitability and technology application.”

Mission: “Continuous improvement in our business policies and procedures, cost reductions through integration of technology at all levels.”

Focus of Efforts: “on delivery of quality service in all areas of banking activities with the aim to add increased value to shareholders’ investment and offer highest possible benefits to our customers”

Strategic Priorities: “ To have sustained growth, broaden and improve range of products and services”


Objective of the Bank:

The objective of the Prime Bank Limited is specific and targeted to its vision and to position itself in the mindset of the people as ‘a bank with difference’. The objectives of the Prime Bank Limited are as follows:

? To mobilize the savings and channeling it out as loan or advance as the company approve.

? To establish, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stocks, debentures, and other securities.

? To finance the international trade both in import and export.

? To carry on the foreign exchange business, including buying and selling of foreign currency, traveler’s cheques issuing, international credit card issuance etc.

? To develop the standard of living of the limited income group by providing Consumer Credit.

? To finance the industry, trade and commerce in both the conventional way and by offering customer friendly credit service.

? To encourage the new entrepreneurs for investment and thus to develop the country’s industry sector and contribute to the economic development.


Management of the Bank

Boards of directors are the sole authority to take decision about the affairs of the business. Now there are 13 directors in the management of the bank. All the directors have good academic background and have huge experience in business. Captain Imam Anwar Hossain is the chairman of the bank. The board of directors holds meetings on a regular basis.

Executive Committee: The Executive Committee consists of the members of the Board of Directors. This committee exercises the power as delegated by the Board from time to time and approves all matters beyond the delegation of Management.

Management Committee: The Management Committee consists of the Managing Directors and Head Office Executives. They discuss about the progress on portfolio functions. Different ideas and decisions, guidelines regarding deposits, lending and management of Human and Material resources are the main concern of this committee.
 
All these committees meet on a regular basis for discussing various issues and proposals submitted for decisions.

Table 1: Management Hierarchy of Prime Bank Limited