A WORKING REPORT ON THE CONSUMER BANKING DEPARTMENT OF EASTERN BANK LTD.

Abstract

1.0 Banking Industry of Bangladesh The importance of commercial banks in the country is inevitable. It is considered as the life blood of the economy. Primarily, commercial banks are one of the major sources of funds in the economy of Bangladesh. By borrowing money from the depositors and lending the same to the businessmen and others as loans and advances, they perform an important function. People and government itself are very much dependent on the effective and efficient services provided by the banks as they act as financial intermediaries by performing the functions of mobilizing the fund and utilizing them in a proper way. The growth of populations and projected increases in our buying power provide significant opportunities for retail growth by financial institutions. Banks are using a variety of strategies to target specific markets. Depending on business model and targeted customer base, local banks are using a variety of strategies to reach customers. Some banks use a number of these strategies simultaneously, and others have selected specific approaches from the larger list of strategies. Generally, these strategies includes tailored products and services, nontraditional banking products, alternative credit analysis for loans, transition programs to non traditional banking products, a focus on employee hiring and development, a commitment to serving small business needs in the community.

2.0 Economic changes and its effect on EBL The overall picture of current economy is different. It is a time when loan growth is slower, conservative deposit and diminishing import volume are common phenomenon. In spite of this unfavorable business climate EBL have made progress in delivering quality service by facilitating better loan portfolio and ensuring effective control and compliance. The nation economy is under strain due to unprecedented price hike of essentials, frequent natural calamities, disquiet socio political conditions, shaken trade confidence and lower domestic and foreign investment. It is therefore likely that our GDP may grow at a moderate 5.5 to 6.0 percent in fiscal year 2008 against a usual 6.5 percent growth in last fiscal. Rising export earnings especially from RMG and inward remittance of around USD 6.7 billion remains the two key strengths of this economy during this year. Under the threats of an imminent but moderate recession in the economy of the US and EU, two major destinations of our RMG, have to face greater challenge which ultimately going to make difficult the pave of major earning of overall banking sector.