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

FUNCTIONAL STRUCTURE OF PBL:

Prime Bank Ltd. has the following functional departments in its head office.

Logistic & Support Services Division (L&SSD)
This Division was formerly known as General Services Division (GSD). Their main function relates to procurements and supply of all tangible goods and services to the Branches as well as Head office of Prime Bank Limited. This includes

i. Every tangible functions of Branch opening such as making lease agreement, interior decoration etc.
ii. Print all security papers and Bank Stationeries.
iii. Distribution of these stationeries to the branch
iv. Purchase and distribute all kinds of bank’s furniture and fixtures.
v. Receives demand of cars, vehicles, telephones etc from branched and different divisions in head office and arrange, purchase and delivery of it to the concerned person / Branch.
vi. Install & maintain different facilities in the Branches.

Financial Administration Division (FAD)
Financials Administration Division mainly deals with the account side of the Bank. It deals with all the Head Office transactions with bank and its Branches and all there are controlled under the following heads:

i. Income, Expenditure Posting: All income and expenditures are maintained and posted under these heads.
ii. Cash Section: cash section generally handles cash expenditure for office operations and miscellaneous payments.
iii. Bills sections: this section is responsible for inland bills only.
iv. Salary & Wages of the Employee: Salary and wages of the Head Office executives, Officers 7 Employees are given in this department.
v. Maintenance of Employee Provident Fund: Employee provident fund accounts are maintained here.

Consolidation of Branch’s Accounts: All branches periodically (especially monthly) sends their income and expenditure i.e. profit and loss accounts and Head Office made the consolidation statement of income and expenditure of the bank. Here branch Statements are reviewed. This division also prepares different monthly, quarterly, half-yearly statements and submits to Bangladesh bank. It also analyzes and interprets financial statements for the management and Board of director.

Credit Division
The main function of this division is to maintain the Bank’s credit portfolio. A well reputed and hard working group of executives & officers runs the functions of this division. Other major functions are the following:

i. Receives proposals
ii. Proposes and appraises.
iii. Get approval
iv. Communication and Sanction
v. Monitoring and follow-up.
vi. Set price for credit and ensure effectiveness of it.
vii. Prepare various statements for onward submission to Bangladesh bank.

 International Division
The objective of this division is to assist management to make international dealing decisions and after decision is made, guide Branches in their implementation. Its functional areas are as follows:

i. Maintaining correspondence relationship.
ii. Monitoring foreign exchange rate and exchange dealings.
iii. Maintaining Nostro A/Cs and reconciliation.
iv. Authorizing of signing and test key.
v. Monitoring foreign exchange returns & statements.
vi. Sending updated exchange rates to concern branches.

Computer Division
Prime Bank operates and keeps records of its assets and liabilities in computers by using integrated software to maintain client Ledger and general Ledger. The main function of this division is to provide required Hardware and Software. The functions of this division are:

i. Designing software to support the accounting operation.
ii. Updating Softwares, if there is any lagging.
iii. Improvisation of software to get best possible output from them.
iv. Hardware and Software troubleshooting.
v. Maintain Connectivity in through LAN, Intranet & Internet.
vi. Provide updated CD’s of Online Accounts to the Branches
vii. Routine Checkup of Computers of Different Branches.

Public Relations Division
It has to perform certain functions related to all types of communication. The broad routine functions can be enumerated as follows:

i. Receiving and Sanctioning of all advertisement application
ii. Keeping good relation with different newspaper offices.
iii. Inviting concerned ones for any occasion.
iv. Keeping good relation with different officers of electronic media.

Marketing Division
Marketing Division is involved in two types of Marketing.

Asset marketing: Marketing of assets refers to marketing of various kinds of loans and advances. In-order to perform this jobs, they often visits dome large organizations and attract then to borrow from the Bank to finance profitable ventures.

Liability Marketing: The process of Liability marketing is more of less same as Asset marketing. In this case different organizations having excess funds are solicited to deposit their excess fund to the Bank. If the amount of money to be deposited is large, the Banks sometimes offer a bit higher price than the prevailing market rate.
 
Human Resources Division
HRD performs all kind of administrative and personnel related matters. The broad functions of the division are as follows:

i. Selecting & Recruitment of new Personnel.
ii. Prepare all formalities regarding appointment and joining of the successful candidates.
iii. Placement of Manpower.
iv. Deal with the transfer, promotion and leave of the employees.
v. Training & Development.
vi. Termination and retrenchment of the employees.
vii. Keeping records and personal file of every employee of the Bank.
viii. Employee welfare fund running.
ix. Arranges workshops & trainings for employee & executives.

Inspection & Audit Division
Inspection and Audit division works as internal audit division of the Company. The officers of this division randomly go to different Branches, examine the necessary documents regarding each single accounts. If there is any discrepancy, they inform the authority concerned to take care of that/those discrepancies. They help the bank to comply with the rules and regulation imposed by the Bangladesh Bank. They inform the Bangladesh Bank about the Current position of the rules and regulation followed by the Bank.

Credit Card Division
Prime Bank obtained the principal membership of Master Card International in the month of May, 1999. A separate Division is assigned to look after this card. The Marketing Team of this division goes to the potential customers to sell the card. Currently Prime Bank Ltd. offers four types of card:

(1) Local Silver Card.
(2) International Silver Card
(3) Local Gold Card
(4) International Gold Card

Recently Prime Bank has obtained the membership of VISA credit Card and soon they will start marketing of it.

Merchant Banking and Investment Division
This division concentrates its operation in the area of under writing of initial public offer (IPO) and advance against shares. This division deals with the shares of the Company. They also look after the security Portfolio owned by the Bank. The Bank has a large amount of investment in shares and securities of different corporations as well as government treasury bills and prize bond.

Conclusion

Management will have to keep close coordination with other banks as well as the Bangladesh Bank to find out how to solve the problems related to Documentary Credit operations. Coordination with Bangladesh Bank is an absolute necessity as Documentary Credit related activities of all Authorized Dealer (AD) branches of all commercial banks are strictly regulated by Bangladesh Bank. Still banks have little to do to tackle the problems caused by the external factors. But banks can do something to minimize the problems caused by the internal factors. Necessary measures include automation, establishing remittance-drawing arrangements with foreign exchange houses and banks, regular performance appraisal and promotions depending on that will minimize mistakes by the employees to a great extent.