EXECUTIVE SUMMARY

The objective of the study is the deference between on the financial performance of Grammen Bank & Others Banks In Bangladesh. The study mainly focuses on to compeering Grameen Bank & Others Bank there are: Islami Bank Bangladesh Ltd. (IBBL), Export Import Bank of Bangladesh Ltd. (EXIM), National Bank Ltd. (NBL), Standard Chartered Bank (SCB), and Performances of sample banks have been compared from different angles. Grameen Bank Bank in Bangladesh, the first bank to specialize in small loans for poor individuals. Originated by economist Muhammad Yunus, the Grameen banking model is based on groups of five prospective borrowers who meet regularly with Grameen Bank field managers. Typically, two of the five prospective borrowers are granted loans. If, after a probationary time period, the first two borrowers meet the terms of repayment, then loans are granted to the remaining group members. Peer pressure acts as a replacement for traditional loan collateral. Grameen became an independent bank in 1983; headquartered in Dhaka, Bangladesh, it has more than 2,200 branches in the country. An average Grameen loan is about $300. The Grameen model has come to symbolize an efficient means of helping the poor by providing them with opportunities to help themselves. Nearly all of Grameen's loan recipients have been women. In 2006 Grameen Bank and Yunus were awarded the Nobel Prize for Peace. Grameen Banking System (GBS) The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or "grameencredit") to the impoverished without requiring collateral. The name Grameen is derived from the word gram which means "rural" or "village" in the Bengali language. The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank also accepts deposits, provides other services, and runs several developmentoriented businesses including fabric, telephone and energy companies. Another distinctive feature of the bank's credit program is that the overwhelming majority (98%) of its borrowers are women. The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, a Fulbright scholar at Vanderbilt University and Professor at University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services targeted to the rural poor. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. The organization and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006;[6] the organization's Low-cost Housing Program won a World Habitat Award in 1998.

It also has to be noted that Professor Muhammad Yunus was also awarded the Medal of Freedom by President Barack Obama; an honour to his model which has been replicated in more than 150 countries whereby 98% of the borrowers are women, who belong to groups of 5 to 10 women. Women who have adopted the Grameen Model adhere to the 16 Decisions which is a Way of Life and 68% of them have been alleviated out of the poverty line.

Grameen Bank Corporate Information Industry Founded Key people Products : Finance : 1983 : Muhammad Yunus, founder Muhammad Shahjahan, Acting Managing Director : Financial Services Microfinance : 5,959,675,013 Taka (2006) 6,335,566,324 Taka (2006)

Revenue Operating income :

Total assets : 5 9,383,621,728 Taka (2006) Islami Bank Bangladesh Ltd. Islami Bank Bangladesh Limited (IBBL) was incorporated on 13th March,1983 as a public company with limited liability under the companies Act, 1913 (Amendment, 1994). The Bank started functioning from 30th March, 1983. IBBL is the first interest-free Bank in South-East Asia. The establishment of this bank ushered in a new era in Bangladesh, the 3rd largest Muslim Country of the world. The Bank is commited to run all its activities as per Islamic Shariah. IBBL through its steady progress and continued success has, by now, earned the reputation of being one of the leading private sector banks of the country. Aims and Objectives To conduct interest free banking. To establish participatory banking instead of banking on debtor - creditor relationship. To invest through different modes permitted under Islamic Shariah. To accept deposits on Mudaraba & Al-Wadeeah basis To establish a welfare-oriented banking system. To extend co-operation to the poor, the helpless and the low-income group for their economic uplift. To play a vital role in human development and employment generation. To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas. To contribute in achieving the ultimate goal of Islamic Economic System. Corporate Information Authorised Capital: Tk. 500.00 Million Paid-up Capital: Tk. 317.98 Million

Share in Capital: Local Share holders: 38% Foreign Share holders: 62% Number of Branches: 105 Number of Employees: 2171 Total Deposit: Tk.19750.99 Million Total Investment: Tk. 13454.74 Million

Functions: To maintain all types of deposit accounts. To make investment. To conduct foreign exchange business. To extend other banking services. To conduct social welfare activities through Islami Bank Foundation.

Export Import Bank of Bangladesh Ltd. "Export Import Bank of Bangladesh Ltd." is widely named as "EXIM Bank" which is a completely shariah based Islamic bank. All of its activities are being operated under the norms of Islamic shariah. The bank was established as a traditional bank on the 3rd of August in the year of 1999. Though it started its operation as a traditional bank, it was converted to an Islamic bank on the 1st of July in the year of 2004. The bank has got a dramatic change through this conversion. Vision: The main of vision of Export Import Bank of Bangladesh Ltd. is Together Towards Tomorrow. The bank believes in togetherness with its customers in the growth and progress with services. To achieve the desired goal, there will be pursuit of excellence at all stages with a climate of continuous improvement, because, in Export Import Bank of Bangladesh Ltd., everybody believes the line of excellence is never ending. Banks strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environments. Its personalized quality services to the customers with the trend of constant improvement will be cornerstone to achieve banks operational success. Mission: 1. To be the most caring and customer friendly and service oriented bank. 2. To create a technology based most efficient banking environment for its customers.

3. To ensure ethics and transparency in all levels. 4. To ensure sustainable growth and establish full value of the honorable shareholders and 5. Above all, to add effective contribution to the national economy. Corporate Information Date of incorporation Inauguration of first Branch Authorised Capital Paid-up Capital Number of Branches Credit Rating : : : : : : June 02, 1999 August 03, 1999 Tk.350.00 Crore 171.375 Crore 35(Thirty Five) Long Term A- (Adequate Safety) Short Term ST-3 (Good Grade) Prime Bank Limited The bank was incorporated as a public limited company in Bangladesh under Companies Act 1994. It commenced its banking business with one branch from April 17,1995 under the license issued by Bangladesh Bank. Presently the bank has 42 branches all over Bangladesh and a booth located at Dhaka club, Dhaka. Out of above 42 branches, 05 branches are designated as Islamic Branches complying with the rules of Islamic Shariah, the modus operandi of which is substantially differently from other branches run on commercial conventional basis. The bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly quoted company for its general class of share. The principal activities of the bank are to provide all kinds of commercial banking services to its customers through its branches in Bangladesh. The bank also carries out merchant banking activities under the license issued by the Securities and Exchange Commission (SEC), Dhaka, Bangladesh. Objectives: The objectives for which the bank is established are as follows: 1. 2. To carry on, transact, undertake and conduct the business of banking in all branches. To receive, borrow or to raise money on deposit, loan or otherwise upon such terms as the company may approve. To carry on the business of discounting and dealing in exchange of shares and securities and all kinds of mercantile banking. To provide for safe-deposit vaults and the safe custody of valuables of all kinds.

3. 4.

5.

To carry on business as financiers, promoters, capitalists, concessionaires and brokers.

6. To act as agents for sale and purchase of any stock, shares or securities or for any other momentary or mercantile transaction. 7. To establish and open offices and branches to carry on all or any of the business abroad and within the country provided prior permission is obtained from Bangladesh bank.

Corporate Information Incorporation of the Company Commencement of Business : Number of Branches Number of Employees Authorized Capital Paid-up Capital Total Assets Total Equity : : : : : : : 50 1172 Tk.400.00 Crore Tk.175.00 Crore Tk.5120.28 Crore 333.39 12 February 1995 17 April 1995

National Bank Limited National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open new branches by the year 2007. Mission To provide highest benefits to our customers and good returns to our shareholders. To Provide services at the doorsteps of the clients through diversification and further expansion of the financial sector. To ensure highest utilization of human resources through increasing efficiency and creativity. To encourage people to grow habits of savings. To increase investment for keeping the pace of market economy. To simplify international transaction and foreign trade to earn the trust of all concerned.

To identify the needs of the clients based on practical necessity and ensure short and long-term finance. To utilize bank asset through proper investment and participation of different welfare programmes of the country. To help keep the share market active through meaningful presence of the bank in the capital market. To utilize information technology for modern banking operation. To strengthen the discipline in the bank management and provide best services to the clients through creating long lasting relation with them. To achieve economic growth through business and different social programmes. To enhance the banks image within and outside the country. Corporate Information

Commencement of Business : Number of Branches Number of Employees Authorized Capital Paid-up Capital Total Assets Standard Chartered : : : : :

March 23, 1983 91 2270 Tk.2450.00 Crore Tk.805.47 Crore Tk.46796.04 Crore

Standard Chartered Bank started its business in Bangladesh in 1948, opening its first branch in the port city of Chittagong. The bank increasingly invested in people, technology and premises as its business grew in relation to the country's thriving economy. At present the bank has 6 offices in Dhaka Chittagong and Sylhet, including the country's only offshore banking unit inside the Dhaka Export Processing Zone at Savar. Extensive knowledge of the market and essential expertise in a wide range of financial services underline our strength to build business opportunities for corporate and institutional clients at home and abroad. Continuous upgrading of technology and control systems has enabled the bank of offer new services, which include unique ATMs and Phone banking. Standard Chartered's services in Bangladesh, ranges from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services. Broad strategic objectives

Creating a congenial work environment Modernization of the management information system to achieve full automation by drastically cutting down the paper works in long term. Focusing on service quality and consume needs

Recruiting and maintaining top grade, efficient employees To invest in those technological systems which will upgrade and enhance financial services

The Project: Findings & Recommendation Analyzing the different aspects of marketing functions of the eight selected banks, the study reveals the fact that the banks that practice Others Banks are performing better Then Grameen Bank.