Products and Services of DBL

1.12 Products of DBL
Different banking products and services are being offered exclusively to the Non Government Organizations and international projects in Bangladesh and its staff, both local and expatriate, based in Bangladesh. With the assistance of the Marketing Team, who have prior experience of serving diplomatic missions with other multinational banks, the Bank has tailored a list of products to address the NGO / International Organization’s unique banking requirements in Bangladesh. Dhaka Bank Limited is committed to developing and delivering to the corporate relationships total banking solutions while ensuring a level of service that exceeds customer expectations.

1) Retail Banking:
In 2001 DBL. introduced its personal banking program responding to the market demand for a complete range of modern banking products & services. Last year they introduced a new product called Savings bundles Product. Designed exclusively for the salaried executives, Excel Account offers a packaged solution to companies and organizations in processing their employees’ salaries and funding employees’ loans.

Retail Banking consists of the following products:

Liability Products
• Savings bundled Products
• Deposit Pension Scheme
• Special Deposit Scheme
• Deposit Double Scheme
• Gift Cheque

Asset Products
• Home Loan
• Personal Loan
• Vacation Loan
• Car Loan
• Any Purpose Loan

Services
• Internet Banking
• SMS Banking
• Locker
• ATM Card
• VISA Credit Card
• Utility Bill/Tuition Fee Collection
• Letter of Credit
• Western Union and other money transfers like Placid, Rupali etc (Note: they do not provideMoneyGram Services)

Savings Bundle Product
Dhaka Bank Saving Bundle Product is the first of its kind in Bangladesh. A unique blend of all flexibilities of a current account and provision high interest on daily balance and monthly interest paid savings account in three schemes, namely-
• Dhaka Bank Silver Account
• Dhaka Bank Gold Account
• Dhaka Bank Platinum Account

Dhaka Bank Savings Bundle product is another landmark to our commitment – Excellence in Banking

Customer will get the following benefits for opening any of the above account
• Lifetime annual fee Free ATM card
• Lifetime annual fee Free Credit Card
• 0.5% less interest on Retail Loan
• Free Cheque Book i.e. 50 leaves in Silver Account, 100 leaves in Gold account & 150 leaves in Platinum Account.
• Free SMS & Internet Banking

Deposit Pension Scheme
Dhaka Bank is well poised to be the leading Personal Banking business amongst the local private banks. Bank's conscious efforts in brand building, introducing and supporting new packaged products, developing PB organization along with non-traditional delivery channels have resulted in good brand awareness amongst its chosen target markets.

Installment based savings schemes are a major category of saving instruments amongst mid to upper middle-income urban population. DPS is an installment based savings scheme (Deposit Pension Scheme) of Dhaka Bank for individual clients. The key differentiators of the product will be –

- Amount of monthly deposit - The scheme offers the clients the flexibility of tailoring the amount of monthly deposit based on his monthly cash flow position. The minimum monthly deposit will be BDT 500.00 The client will have the option of depositing any amount in multiples of BDT 500.00 subject to a maximum of Tk 20,000.

- Flexible tenor of the scheme- The client has flexibility of deciding on the tenor of the scheme in-terms of number of months. However, the minimum tenor would be 48 months and the maximum would be 144 months.

- Flexibility to open any number of DPS Account- A client can open maximum five DPS accounts in client’s name, in his/her spouse’s name or in the name of his/her children or in joint names with any of his/her family members.

- Bonus point - if the client continues the scheme up-to maturity then at maturity, the client will be awarded a bonus 1% on the total deposit amount. However, to qualify for the bonus point, client may default in paying maximum 2 installments within the tenure of the DPS.

- Premature encashment – if any client closes the deposit account before one year, s/he will not be entitled to any interest. Account running more than a year will be eligible for the prevailing interest offered in the savings account.

- Late payment fee – Clients failing to deposit any installment will pay 5% late payment fee on the deposit installment amount as late payment fee, which will be realized at the time of depositing the next deposit Installment.

- Payment through Account – Clients will have to open an Account with Dhaka Bank Limited and a standing instruction will be executed for auto-debit to effect the monthly installment.

- OD Facility against DPS - Clients will have the option of taking advance upto 90% of the deposited amount at the time of application. However, to be eligible for the OD facility, the account must be at least 2 years old or the minimum ticket size of the advance will be Tk 20,000.00.

Deposit Double
Deposit Double is a time specified deposit scheme for individual clients where the deposited money will be doubled in 6 years. The key differentiators of the product will be:

- Amount of deposit - The minimum deposit will be BDT 50,000.00 (either singly or jointly). The client will have the option of depositing any amount in multiples of BDT 10,000 subject to a maximum of Tk 20, 00,000 in a single name and Tk 35, 00,000 in joint name.

- Tenure of the scheme - The tenure of the scheme will be 6 years.

- Premature encashment – If any client chooses to withdraw the deposit before the tenure, then she/he will only be entitled to prevailing interest rate on savings account in addition to the initial deposit. However, withdrawal of the deposited amount before one year will not earn any interest to the depositor(s).

- OD Facility against Deposit - Clients will have the option of taking advance upto 90% of the initial deposited amount. The lending rate will be tied up with the interest rate offered on the deposit. BDT 500,000

- Govt. Charges – The matured value is subject to taxes and other Govt. levies during the tenure of the deposit.

Income Unlimited
The management of Dhaka Bank Limited is pleased to launch Special Deposit Scheme, a new liability product on May 04, 2005.

Product Name- Special Deposit Scheme
Deposit Amount: In multiples of Tk 50,000 However the minimum deposit will be Tk 1,00,000 (singly or jointly) and the maximum Tk 50,00,000 (singly/Jointly).
Interest Due: One month after the initial deposit date the interest will be credited to the savings/current account.
Tenure: 3 Years
Monthly income on Tk 100,000: Tk 1,000 subject to 10% Income Tax
Rate of Interest: 12% (simple)

Excel Account
Excel Account has been tailored in the manner of having both asset and liability characteristics blended into a single product for salaried individuals employed in any institution. On virtue of this product, prospective clients receive a credit interest based on the credit balance available in the account. The clients will also be required to pay the bank OD interest if the balance of the account becomes overdraft.

The tenure of the account will be for 3 years maximum, having renewal facility for every year until the client resigns from the institution. OD facility is a pre-embedded feature of the Excel Account. An OD limit is given to the account up to the amount of the salary of the individual employed at the institution. For a credit balance this facility provides an interest rate of 4.5% p.a. based on the daily balance of the account. If in the case, the account is utilized for an OD limit, the debit balance will be subject to a debit interest rate of 16% p.a.

Salary Account
Dhaka Bank has launched a special package of savings account for employees belonging to institutions with which Dhaka Bank has a corporate agreement. With this package salaried employees of these institutions enjoy interest on a daily balance. The key features of the Salary Account are:
• Interest to be calculated on a daily balance basis
• No Periodic Service Charge
• ATM Card Facility
• Credit Card Facility
• On-line Banking Facility
• Internet & SMS Banking Facility

Smart Plant
Smart Plant offers the opportunity to multiply initial cash to 10 times in 6 years. The customer deposits at least Taka 10,000 or multiple of it to avail the opportunity. In single name one can deposit maximum Taka 50, 00,000. Dhaka Bank shall contribute 4 times of your deposited amount to build up a fund for issuance of Smart Plant. Maturity period of the Smart Plant is 6 years.

The total Smart Plant amount (customer’s deposit + Bank Contribution) will double in 6 years. For example; if you deposit Taka 10,000, bank shall contribute Taka 40,000, altogether the Smart Plant amount will be Taka 50,000. On maturity (after 6 years) the Smart Plant amount will be Taka 1, 00,000. You will repay the bank contribution amount in 72 equal installments. After repayment of all installments the matured value will be credited in your savings account.

Gift Cheque
Dhaka Bank has recently refurbished its Gift Cheque. The features of the gift cheque are as follows:
• Can be encashed at any branch even if the encashing branch is not the issuing branch of the instrument.
• Interest will be applicable only if the instrument is encashed after three months from the date of issue in the following manner:
1. No Interest if encashed before three months from the date of issue.
2. 6% if encashed after three months and before twelve months from the date of issue.
3. 7.25% if encashed after twelve months from the date of issue.
• The gift cheque may be encashed using either of the two modes, (a) cash or (b) Fund Transfer. Encashment of gift cheque is not allowed over clearing.
• Dhaka Bank Limited issues gift cheques in three denominations of Tk.100, Tk.500 and Tk.1000

Personal Loan
As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Personal Loan. The product is a term financing facility to individuals to aid them in their purchases of consumer durables or services. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months.

Target Market
a. Salaried employees of institutions in the Dhaka, Chittagong and Sylhet markets.
b. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
c. Businessmen who are permanent residents of Dhaka, Chittagong and Sylhet metropolis with at least 3 years of continued operation in the line of business.

Restrictions and client eligibility
Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 10,000.

Car Loan
As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Car Loan. The product is a term financing facility to individuals to aid them in their pursuit of has a car of their dream. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 60 months. In case of brand new cars the loan tenure will be maximum 72 months.

Target Market
a. Salaried employees of institutions in the Dhaka, Chittagong and Sylhet markets.
b. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
c. Businessmen who are permanent residents of Dhaka, Chittagong and Sylhet metropolis with at least 3 years of continued operation in the line of business.

Restrictions and client eligibility
Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 45,000.

Vacation Loan
As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Vacation Loan. The product is a term financing facility to individuals to aid them in their pursuit of spending a vacation in the country or abroad. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installment varies from 12 to 48 months.

Target Market
a. Salaried employees of institutions in the Dhaka, Chittagong and Sylhet markets.
b. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
c. Businessmen who are permanent residents of Dhaka, Chittagong and Sylhet metropolis with at least 3 years of continued operation in the line of business.

Restrictions and client eligibility
Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 10,000.

Home Loan
The product is a term financing facility to individuals to aid them in their purchases of apartment or house or construction of house. The facility will become affordable to the clients as the repayment is done through fixed installment as commonly known as EMI (equal monthly installment) across the facility period. Depending on the size of the loan, the maximum period of the loan would be 180 months (15 years).

Target Market
The target market for Home Loan will be mainly focused in Dhaka and Chittagong . However, strong recommendation from branches operating in other areas will also be facilitated with the major concentration on the following category –

• Salaried employees of institutions with minimum 3 years continuous service
• Self-employed Professionals who are self employed and have at-least 5 years of independent practice in the area of profession. (Example: Doctors, Dentists, Engineers, Chartered Accountants, Architects who are members of their professional institutes.)
• Businessmen who are permanent residents of Dhaka, Narayangonj, Chittagong and Sylhet with at least 5 years of continued operation in the line of business.

Restrictions and client eligibility
1. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below: The minimum age for any borrower will be 21 years with a maximum age 50 years (at the time of application). The minimum verified Gross Family Monthly Income of the applicant should be BDT40,000.The family income will include only the income of the applicant and spouse.
2. The maximum permitted Equal Monthly Installment (EMI) paid by the borrower should be no more than the 33% of the Family Monthly Disposable Income (FMDI) of the borrower per month.
3. In calculating FMDI, we propose to use the following industry standard formula: Proven income of obligor PLUS proven income of spouse (if the spouse is working) LESS current monthly loan obligations (if any), other monthly fixed obligations (rent, children’s education, monthly food expenses, etc).
Minimum loan amount: BDT 500,000
Maximum loan amount: BDT 3,500,000

4. The maximum loan tenor for different amount of loan is proposed to be as following
Loan Amount 5 lac to less tan 10 lac maximum tenure 5 years
Loan Amount 10 Lac to 35 lac maximum tenure 10-15 years (negotiable)

5. * The tenor will be decided at the discretion of the management.

Any Purpose Loan
Any Purpose Loan is a term financing facility to individuals to meet their immediate requirements. The facility becomes affordable to the clients as the repayment is done through fixed installments commonly known as EMI (Equal Monthly Installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months.

This facility is available for Salaried Employees, Self Employed / Professionals or Businessmen. Loans are restricted to Bangladeshi Nationals within 21 years to 57 years age limit with a minimum verified Gross Family Monthly Income of BDT 10,000. The amount of loan may vary from BDT 25,000 to 5,00,000 depending on the applicants requirement and repayment capability.

2) Corporate Banking
Corporate Banking business was performed fairly well in 2002 despite a sluggish credit demand in the market. This year priority has been given to expand business in low risk sectors. Besides we have designed a comprehensive risk management system to monitor and control our asset quality. Letter of Credit, Guarantee, Import & Export Finance, Syndicate Loan, Project Financing, Leasing, Working Capital Financing etc. all are Corporate Banking Products.

Securitization of Assets
A powerful and effective means of generating funds for a certain category of institutions, Securitization of Assets is still in its infancy in The need however for such a service is great and there is a lot of support from multilateral financial institutions, such as the World Bank and the Asian Development Bank, for such activities to be developed further in this country.

Dhaka Bank intends to take up this challenge and play a significant role in ensuring that Securitization of Assets becomes a normal part of the range of financial instruments available for organizations who can count on a steady, but piecemeal, flow of revenue and want to translate this stream into cash resources with which to carry out further lending activities to new customers. Some practical issues still need to be settled such as those concerning pricing, or the legal framework, but it is expected that, as Dhaka Bank and other institutions pursue more such securitization activities these will be resolved.

Finance & Advisory Services
Given the needs of its large and varied base of corporate clients Dhaka Bank will be positioning itself to provide investment banking advisory services. These could cover a whole spectrum of activities such as Guidance on means of raising finance from the local Stock markets, Mergers and Acquisitions, Valuations, Reconstructions of Distressed companies and other expert knowledge based advice. By this means Dhaka Bank hopes to play the role of strategic counselor to blue-chip Bangladesh companies and then move from the level of advice to possible implementation of solutions to complex financing problems that may arise from time to time.

Syndication of Fund
There has been a surge in the number of syndication deals closed in the last few years. 2004 was an exceptionally good year for syndicated deals for the local commercial banks also for the foreign banks. The total number of syndications in 2004 exceeded 10 totaling over Tk. 10 billion. This rise in the number of syndications can be primarily attributed to the prudential lending guidelines of the Bangladesh Bank. A commercial bank may provide funded facilities up to a maximum of 25% of its equity. Due to this reason, projects with sizeable costs need to approach more than one bank for their debt requirements and therefore the demand for syndications exist. Credit risk diversification has led many international companies to introduce credit derivatives that are actively being traded. Securitization of assets is one such credit risk derivative that allows financial institutions to diversify their portfolios.

At Dhaka Bank Limited, the Syndications and Structured Finance unit was setup on October 30, 2004. This unit successfully closed two syndicated deals in the first and second quarters of 2004. The Syndications and Structured Finance team as a business unit soon followed up by closing another deal totaling Tk 2.10 billion for a large local corporate. The year (2004) being the first full year of operation for the team ended on a high note as we were able to close three syndicated deals as the Lead Bank, two deals as the Co-Arranger and several other deals as a participant.