Compensation System of DBL &amp UCBL

HRM-370 Compensation System of DBL & UCBL
05 December, 2010
Mr. Monzoor Morshed

Lecturer
School of Business
Independent University, Bangladesh
Subject: Letter of transmittal
Sir,
It is great pleasure to submit a report on “Compensation System of an Organization

Operating in Bangladesh" as the fulfillment of the partial requirement of BBA program.
This report is done to find how compensation system operating in Bangladesh. We are working
on bank we find how employee get compensation. This report has helped me to find those
employees are happy with their compensation.
We sincerely hope that you will enjoy reading this report as much as we enjoyed it writing. If
you need any further clarification interpreting our analysis please feel free to ask.
Sincerely
Md. Ahsanul Hoque ID#0820023 ____________________

Ms. Nargis Saba Rani ID#0710210 ____________________
Ms. Rounak Ashrafi ID#0820533 ____________________
Ms. Alimoon Ara ID#0720302 ____________________
Mr. Md.Fazle Sobhan Chowdhury ID#0620326 ____________________
Ms. Jannatul Ferdous ID#0820519 ____________________
Ms. Shameema Akter Sathi ID#0820693 ____________________
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Acknowledgement
We would like to thank Mr. Monzoor Morshed our faculty who has supported us, assisted us and
guided us through the preparation of this report. He has been patient and understanding of all
our queries and problems, and we are very grateful to him for his help.
We would also like to thank all the employees of Dhaka Bank Limited and United Commercial
Bank Ltd. They have been very helpful throughout the preparation of the report & responding to
all our queries.
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Executive Summary
Since „„Dhaka Bank Limited” and “United Commercial Bank Ltd” are the leading Banks in the
bank business and are efficiently broadening their horizon, we thought it would be interesting to
know about their practices and their strategies which they apply in their day to day activities in
controlling the compensation system and human resource and also planning policies to reach the
goals in time.
„‟Dhaka Bank Limited” and “United Commercial Bank Ltd” follows stable compensation
system, for this reason „Dhaka Bank Limited” and “United Commercial Bank Ltd” goes for long
term planning, also the strategies „Dhaka Bank Limited” and “United Commercial Bank Ltd”
followed in their Human Resource Planning is flexibility. We know in compensation system
Human Resource planning organization go for reactive HRP. As we know „Dhaka Bank
Limited” and “United Commercial Bank Ltd” is in now Growth stages.
To estimate future demand and supply of employees “Dhaka Bank Limited” and “United
Commercial Bank Ltd” use Managerial Judgment. To forecasting the internal supply of
employees they used their own software which is HRIS. For external supply how employees
they take fresh University Graduates.
Banks maintains 100% privacy to their employee‟s personal information. „Dhaka Bank Limited”
and “United Commercial Bank Ltd” is now growth stage Company. So, their business has
expended dramatically. For that reasons they never face the situation like employee‟s surplus.
„Dhaka Bank Limited” and “United Commercial Bank Ltd” sometimes faces labor shortage
problem. In that situation the company go for hire temporary employees and employees are
given overtimes.
In the case of compensation system they follow all the process like at first they make a plan then
develop a strategy after that they go for searching and screening at last the evaluate the whole
compensation system process. For this analysis we, focused on the compensation system
practiced by two private banks of Bangladesh.
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Table of Contents
1. INTRODUCTION ......................................................................................................................................... 6
1.1 Background of the Study .................................................................................................................... 6
1.2 Objectives of the Study ....................................................................................................................... 6
1.2.1 to discover the Practice of Compensation System in the selected organization ........................................ 6
1.2.2 to relate classroom study with that of real life situation .......................................................................... 7
1.3 Scope of the Study ............................................................................................................................... 7
1.4 Methodology ....................................................................................................................................... 8
1.5 Limitations .......................................................................................................................................... 9
2. Brief Discussion ..................................................................................................................................... 10
2.1 AN OVERVIEW OF BANKING SECTOR IN BANGLADESH .................................................... 11
2.1.1 Bangladesh Bank................................................................................................................................. 11
2.1.2 Specialized Banks ............................................................................................................................... 11
2.1.3 Nationalized Banks ............................................................................................................................. 12
2.1.4 Private Commercial Banks .................................................................................................................. 13
2.1.5 Foreign Commercial Banks ................................................................................................................. 13
3. THE SEGMENTS OF PAY COMPONENTS .............................................................................................. 14
3.1 MONTHLY GUARANTEED CASH ...................................................................................................... 14
3.2 ANNUAL GUARANTEED CASH .......................................................................................................... 15
3.3 ANNUAL VARIABLE CASH ................................................................................................................. 15
3.4 TERMINAL BENEFITS ......................................................................................................................... 16
3.5 MONTHLY COST OF BENEFITS......................................................................................................... 16
3.6 Fringe Benefits ......................................................................................................................................... 18
RETIREMENT RELATED ................................................................................................................................. 18
INSURANCE RELATED ................................................................................................................................... 18
PAYMENT FOR TIME NOT WORKED ............................................................................................................ 18
OTHERS............................................................................................................................................................. 18
4. Dhaka Bank Limited ............................................................................................................................... 19
4.1 Background of Dhaka Bank Limited (DBL) ........................................................................................... 19
4.2 Mission & Vision ...................................................................................................................................... 19
4.2.1 Goals of the Bank ................................................................................................................................ 20
4.2.2 Values................................................................................................................................................. 20
4.3 Management Committee .......................................................................................................................... 20
4.4 Total Compensation and Benefits Package of DBL................................................................................. 23
4.4.1 Objectives ........................................................................................................................................... 23
4.4.2 Salary Structure................................................................................................................................... 23
4.4.3 Revision of Pay Elements .................................................................................................................... 23
4.4.4 Employee Compensation Records ........................................................................................................ 23
4.5 Basic Employee Benefits for Permanent Employees ............................................................................... 24
4.5.1 Provident Fund .................................................................................................................................... 24
4.5.2 Group Term Life Insurance ................................................................................................................. 24
4.6 Bonuses..................................................................................................................................................... 25
4.7 Meal Facilities .......................................................................................................................................... 25
4.7.1 Branches ............................................................................................................................................. 25
4.7.2 Head Office:........................................................................................................................................ 26
Executives: ......................................................................................................................................................... 26
4.8 Accommodation ....................................................................................................................................... 26
4.9 Utilities Allowances .................................................................................................................................. 26
Executives between grades J to M4:.................................................................................................................. 26
Executives of grades M5 and above: ................................................................................................................. 26
4.10 Medical Benefits ..................................................................................................................................... 27
4.10.1 Medical Benefits for the Executive Staff ............................................................................................ 27
4.11 Transportation Facilities and Car Purchase Scheme ............................................................................ 28
4.11.1 Transportation Facilities for the Executives ........................................................................................ 28
DBL Branches: .................................................................................................................................................. 28
Head Office:....................................................................................................................................................... 28
Top Executives................................................................................................................................................... 32
4.12 Leave Entitlements................................................................................................................................. 32
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4.12.1 Basic Leave Types ............................................................................................................................ 32

4.12.2 Definitions of Basic Leave Entitlements............................................................................................. 33
4.13 Other Leave Options .............................................................................................................................. 34
4.13.1 Maternity Leave ................................................................................................................................ 35
4.13.2 Study Leave ...................................................................................................................................... 35
4.13.3 Hajj Leave ......................................................................................................................................... 35
4.13.4 Special Leave .................................................................................................................................... 35
4.13.5 Leave Encashment............................................................................................................................. 36
4.13.6 Maintenance of Leave Records .......................................................................................................... 36
4.14 Financial Assistance Schemes ................................................................................................................ 36
4.14.1 Objectives ......................................................................................................................................... 36
4.14.2 Priorities for Loan against Provident Fund (PF) or Salary Advance .................................................... 36
4.14.3 Loan against Provident Fund (PF) or Salary Advance Eligibility and Limits ....................................... 37
4.14.4 Repayment of Loan or Salary Advance .............................................................................................. 38
4.14.5 Procedures to Apply and Processing of a Loan or Salary Advance Request ......................................... 39
5. United Commercial Bank Ltd.................................................................................................................. 40
5.1 Background of United Commercial Bank Ltd (UCBL) .......................................................................... 40
5.2 Mission Statement .................................................................................................................................... 40
5.3 Management............................................................................................................................................. 40
SENIOR MANAGEMENT ........................................................................................................................... 40
5.4 Total Compensation and Benefits Package of UCBL .............................................................................. 42
5.4.1 Objectives ........................................................................................................................................... 42
5.4.2 Salary Structure................................................................................................................................... 42
5.4.3 Revision of Pay Elements .................................................................................................................... 42
5.4.4 Employee Compensation Records ........................................................................................................ 42
5.5 Basic Employee Benefits for Permanent Employees ............................................................................... 43
5.5.1 Provident Fund.................................................................................................................................... 43
5.5.2 Bonuses .............................................................................................................................................. 43
5.5.3 Accommodation .................................................................................................................................. 43
5.6 Utilities Allowances .................................................................................................................................. 44
5.7 Mobile Telephone ..................................................................................................................................... 44
5.8 Medical Benefits....................................................................................................................................... 45
5.9 Car Purchase Scheme .............................................................................................................................. 45
5.10 Leave Entitlements................................................................................................................................. 45
5.10.1 Basic Leave Types ............................................................................................................................ 45
5.10.2 Definitions of Basic Leave Entitlements............................................................................................. 46
6. CONCLUSION ........................................................................................................................................... 48
7. Appendix ..................................................................................................................................................... 49
8. REFERENCES ............................................................................................................................................ 53
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1. INTRODUCTION
1.1 Background of the Study
During the late nineties the banking sector of Bangladesh saw a sudden shift of expansion as the
government approved operation of a good number of new Private and Foreign Commercial
Banks. This expansion irresistibly brought in greater benefits to the consumers because of the
highly competitive market condition. The period has seen emergence of some dynamic and
high-tech banking services of which our consumers were deprived of. This new era of banking
services include:
One Stop Utility Service
Automated Teller Machine
Phone Banking
Credit Card
On-line Banking
Syndicated loan
But these advancements in banking technology didn‟t solely benefit the customers. It brought
greater challenge in parts of the employees or bankers who were designated with high profile
jobs with tougher goals to meet, a dynamic career with attractive remuneration, greater benefits
and stunning status. This report will take an attempt to study the career private commercial
banks of our country through the evaluation of the employee maintenance functions as practiced
in this sector.
1.2 Objectives of the Study
1.2.1 to discover the Practice of Compensation System in the selected

organization
In contrast to theories, many business firms of Bangladesh have the least or even no exposure to
one of the crucial areas of business - Human Resource Management. But since every
organization is made up of people, compensating them, acquiring their services, developing their
skills, motivating them to high levels of performance, and ensuring that they continue to
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maintain their commitment to the organization are essential to achieving organizational

objectives. We will find out how management in the selected organizations is dealing with
compensation system mainly.
1.2.2 to relate classroom study with that of real life situation

Real life business is far more different from our classroom studies. Sometimes the books we
read are the oversimplification of facts and most of the time actual practices don‟t match with
the theories written in books. So our objective is to relate our classroom studies with real life
scenario and get a clear view of what actually is happening in the area of Human Resource
Management of the selected banks.
1.3 Scope of the Study
Although we hear people saying that they do not care for money but they do care for the feeling
of belongingness to their organization it goes without saying that money is a major motivator. It
is through compensation by which a relatively effective and satisfied working force is sustained.
The maintenance of employee co-operation is largely dependent upon the answers of following
questions:
 Whether the company‟s compensation rates are better than those of the segment
market?
 What indirect plans of compensation are commonly used in the organization?
 What specific plans are available from which to choose?
 What benefits, incentives and rewards are provided?
 Whether these policies are transparent to the employees and practiced without
any distortion?
We have basically judged the organizations on the basis of the above criteria. The report will
first focus on the overall banking sector of our country trying to describe, note and list the banks
currently operating in our country. As it is beyond our scope to focus on each and every bank,
we have chosen two PCBs (Private Commercial Banks) - one from the first generation and the
other from the second generation. Because of the request of the authority for anonymity we will
describe the two banks as Dhaka Bank Limited and United Commercial Bank Ltd. respectively.
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In this report, we have covered the different aspects of human resource maintenance functions.
Since the reward system of an organization is the primary maintenance tool in human resource
management area, we have specifically focused our discussion on this area. Definitely there is a
difference between the maintenance functions of Foreign and Local commercial banks. We will
try to find out if there is any such difference and if any, what are these differences. The reward
system includes both intrinsic and extrinsic rewards. But intrinsic rewards are completely
qualitative and very hard to measure. It requires a lot of research work. So we have excluded
intrinsic rewards from our discussion. Our discussion will be about the extrinsic rewards both
monetary and non-monetary. We will discuss about the base salary, incentives and benefits
under the monetary rewards. We will also try to find out what non-monetary rewards are given
in the selected organizations.
The report will thus gather information, classify them and eventually lead to the comparison
between the two strongest banking sectors of Bangladesh.
1.4 Methodology
In order to supplement our theoretical knowledge in Human Resource Management with

practical exposure, we contacted different organizations and collected data regarding real life
scenario.
The content of this report is thought to be quite confidential with the organizations. So, we had
to spend a long time to convince the human resource managers of our selected organizations to
help us. We had to convince them about the fact that this report is totally for internal purpose to
supplement our theoretical knowledge.
However, the method of collecting information was basically an interview type. Since the data
regarding salaries are considered confidential we did not have access to any written material. We
arranged appointments with the human resource personnel and employees in our selected
organizations and interviewed them. We asked them about their compensation system, salary
ranges and the basis of allocating incentive. Thus we gathered our required information.
To find out the compensation system of an organization we select two companies (BANK) one
is Dhaka Bank Limited and another one is United Commercial Bank. The office held on Dhaka
and so many places. Data used in this study were collected from the following source
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Primary source
 face to face interview
 survey using questionnaires
 personal observation while visiting the company
Data collection
Employee were interviewed through structured questionnaire in different outlets
Designing questionnaire
Structured questionnaires have been used for this study in with multiple choice and open ended
question.
Secondary data
 annual report
 internet
 newspaper
1.5 Limitations
The limitations are:

 Since maintenance function entails a vast area it was beyond our scope to describe and
investigate each and every topic though we tried to cover all the important aspects to make
our report a comprehensive one.
 The management of our selected organizations was somewhat reluctant to reveal all the
information about their policies. They did not particularly provide the amount of salaries or
the policies to give incentives.
 The hierarchies of the selected banks are so different that it is very difficult to find out the
same level positions and compare their salary ranges.
 Moreover, there are some qualitative aspects such as job security, work environment, peer
relationships, relationship with the supervisors, reputation of the company, which play
important role in maintaining the productivity of employees. These pictures are not painted
in this report as it relates to the utilization phase of personnel management and therefore
beyond scope of this report.
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2. Brief Discussion
Compensation is a systematic approach to provide monetary value to employees in exchange of

work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
Compensation may be used to:

 Recruit and retain qualified employees.
 Increase or maintain morale/satisfaction.
 Reward and encourage peak performance.
 Achieve internal and external equity.
 Reduce turnover and encourage company loyalty.
 Modify (through negotiations) practices of unions.
Compensation will be perceived by employees as fair if the approach is based on systematic

components. Various compensation systems have developed to determine the value of positions.
These systems utilize many similar components including job descriptions, salary
ranges/structures, and written procedures.
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2.1 AN OVERVIEW OF BANKING SECTOR IN BANGLADESH
The Banking Industry in Bangladesh is a complex and competitive one. The sector can be
diagramed as follows:
The sector can be diagramed as follows:
Bangladesh Bank
Specialized Banks Commercial Banks Non-Banking

Financial Institutions
Nationalized Banks Private Commercial Foreign Banks

Banks
A brief description of each of the groups is noted here:
2.1.1 Bangladesh Bank

Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the
sector. The banking system consists of four nationalized commercial Banks, around forty private
commercial banks, nine foreign multinational banks and some specialized banks. The ministry
of Finance in association with Bangladesh bank regulates the banking sector through monetary
and fiscal policies whereas banks are operating under guidelines set by Bangladesh Bank.
2.1.2 Specialized Banks

These banks basically are specialized micro-finance institution, which revolutionized the
concept of micro-credit and contributed greatly towards poverty reduction and the empowerment
of women in Bangladesh.
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The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which

revolutionized the concept of micro-credit and contributed greatly towards poverty reduction
and the empowerment of women in Bangladesh. Out of the specialized banks, two (Bangladesh
Krishi Bank and Rajshahi Krishi Unnayan Bank) were created to meet the credit needs of the
agricultural sector while the other two ( Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa
Rin Sangtha (BSRS) are for extending term loans to the industrial sector. The Specialized banks
are:
 Grameen Bank
 Bangladesh Krishi Bank
 Bangladesh Shilpa Bank
 Rajshahi Krishi Unnayan Bank
 Bangladesh Shilpa Rin Sangstha
 Basic Bank Ltd (Bank of Small Industries and Commerce)
 Bangladesh Somobay Bank Limited(Cooperative Bank)
 The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
2.1.3 Nationalized Banks

The banking system of Bangladesh is dominated by the 4 Nationalized Commercial Banks,
which together controlled more than 50%-55% of deposits. The nationalized commercial banks
are:
 Sonali Bank
 Janata Bank
 Agrani Bank
 Rupali Bank
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2.1.4 Private Commercial Banks

Private Banks are the highest growth sector due to the dismal performances of government
banks (above). They tend to offer better service and products.
 AB Bank Limited
 BRAC Bank Limited
 Dutch Bangla Bank Limited
 Dhaka Bank Limited
 Islami Bank Bangladesh Ltd
 IFIC Bank Limited
 United Commercial Bank Limited
 NCC Bank Limited
 Prime Bank Limited
 Exim Bank Limited
 Bank Asia Limited
 Trust Bank Limited and many more
2.1.5 Foreign Commercial Banks

 Citigroup
 HSBC
 Standard Chartered Bank
 Commercial Bank of Ceylon
 State Bank of India
 National Bank of Pakistan and many more
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3. THE SEGMENTS OF PAY COMPONENTS

To evaluate the various components of the total compensation package, the values of non-cash
perquisites and benefits have been monetized at current market rates.
While computing Annual Guaranteed Cash, items like Performance Bonus, which is variable,
and Terminal Payments have not been taken into account though these have been considered for
the purpose of Annual Cost to the Company.
The compensation package has been divided into five segments:

 Monthly Guaranteed Cash
 Annual Guaranteed Cash.
 Annual Variable Cash
 Terminal Payments
 Monthly Cost of Benefits
3.1 MONTHLY GUARANTEED CASH
~ Basic Salary
Actual average basic salary of the benchmarks has been taken.
No employer agrees to provide actual individual salary for the benchmark jobs as this is
confidential between the employer and the employee. Where a job is held by one person, the
individual‟s actual salary has been shown. Where 2/3 benchmark jobs fall under one grade,
actual average of that grade has been taken. Where actual average has not been available, the
meaningful point of the salary range, applicable to the job grades of the benchmark has been
taken.
~ House Rent Allowance
Specific amounts or percentage of basic salary paid in cash for each matched job have been
taken.
~ Domestic Aid’s Wage
Specific amounts paid in cash for each matched job have been taken.
~ Utilities / Maintenance
Specific amounts paid as cash allowance have been taken.
~ Transport Allowance
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Specific amounts paid in cash for each matched job have been taken.
~ Medical Allowance
A specific amount paid in cash has been used.
~ Personal / Special / Other Allowance
Specific amounts paid in cash as allowances have been utilized.
Quite a few costs are lumped into this and paid in cash. With reduction of personal tax slabs,
employers are opting for a more transparent pay system conforming to the tax regulations.
~ Meal Allowance
Specific amounts paid in cash as allowance have been used.
~ Children Education Allowance
Specific amount paid in cash has been used.
3.2 ANNUAL GUARANTEED CASH
~ Annual Bonus
This is a deferred wage not linked to profitability. Actual amount paid under this head has been
used.
~ Festival Bonus
Actual amount paid under this head has been used.
~ Leave Fare Assistance
Actual amounts paid to the employees have been taken.
3.3 ANNUAL VARIABLE CASH
~ Performance Bonus
Actual amounts paid have been taken. This is paid by the employers in different forms based on:
 Employee‟s performance only
 Combined performance of the group, business unit and the employee
 Company performance
~ Profit Bonus
Actual amounts paid, based on company profitability, have been taken.
~ Incentive Bonus
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SMC pays an incentive bonus to its all its employees. The incentive amount is a fixed sum for
each grade.
3.4 TERMINAL BENEFITS
~ Provident Fund
Actual payments made by the employers to the Fund have been used.
~ Gratuity
Actual amounts provided by the employers in the Books of Accounts have been used.
~ Pension Fund
Actual payments made by the employers to the Fund have been used.
3.5 MONTHLY COST OF BENEFITS
~ Company Leased Accommodation

Actual cost has been taken.
~ Household Effects (Depreciation)
This reflects the cost of depreciation on account of hard and soft furnishing and electrical
appliances provided by the comparators.
~ Utilities / Maintenance
Costs under this head have been taken at actual.
~ Telephone
Actual cost has been taken.
~ Company Car (Depreciation)
Where company cars are provided for both functional and personal purposes, the figures
mentioned represent the cost of depreciation.
~ Running and Maintenance Cost
Actual amounts spent for fuel and car maintenance have been used.
~ Driver’s Wages
Where drivers are Company employees, their actual cost has been taken. Where Private Driver‟s
wages are paid for, actual amounts paid to the employees have been taken.
~ Registration / Insurance / Tax
Costs of registration, insurance, tax, etc. have been taken, at actual.
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~ Pickup-Drop / Transportation Cost

Actual cost to the company for pickup-drop facility has been taken.
~ Entertainment Allowance
Specific costs reimbursed have been utilized.
~ Canteen Subsidy
Specific costs on account of company provided subsidized meals have been taken.
~ Company Products
Specific costs on account of company products have been taken.
~ Club Membership
The actual amounts paid for by the employers have been utilized.
~ Group Life Insurance
Actual premium paid by the employers has been used.
~ Medical Expense
The average cost to the employer on account of medical reimbursement has been used, at actual.
~ Hospitalization Scheme
Premium paid by the comparators under the Hospitalization Insurance Policies has been taken at
actual.
~ Loan
Amount of interests absorbed by the comparator for utilization of various loan policies has been
taken.
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3.6 Fringe Benefits
Employee benefits, sometimes called fringe benefits, are those rewards that employees receive
for being members of the organization and for their position in the organization unlike wage,
salaries and incentives, benefits are usually not related to employee performance.
The term fringe benefits was coined over 40 years ago by the war labor Board, Reasoning that
employer provided benefits such as paid vacation, holidays and pensions were on the fringe of
wages , are agency exempted them from pay controls. It has been argued that this action, more
that any single event, led to the dramatic expansion of employee benefits that has since occurred.
However, because of the significance of benefits to total compensation, many employers have
dropped the word fringe for fear that it has a minimizing effect.
Following is the list showing the types of benefits that employees can receive from the
company:
PAYMENT
RETIREMENT INSURANCE
FOR TIME OTHERS
RELATED RELATED
NOT WORKED
Pension fund Medical insurance Vacation Company discounts
Annuity plan Accident insurance Holidays Meals furnished by company
Early retirement Life insurance Sick leave Moving expenses
Disability
Disability insurance Military leave Severance pay
retirement
Retirement gratuity Dental insurance Paid rest periods Tuition refunds
Survivor benefits Lunch periods Credit union
Travel time Company car
Legal service
Financial counseling
Recreation facilities
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4. Dhaka Bank Limited
4.1 Background of Dhaka Bank Limited (DBL)

Dhaka Bank Limited (DBL) was incorporated as a Public Limited Company on April 06, 1995
under the Company Act 1994 and started its Commercial Operation on June 05, 1995 as Private
Commercial Bank. The Bank started its journey with an Authorized Capital of Tk.1000.00
Million and Paid up Capital of Tk.100.00 Million. Today it is one of the most renowned Private
Commercial Banks having multiple branches in the major cities of the Country.
Dhaka Bank Limited (DBL) has started its Business with all the features of a Corporate Bank
and the Products of both Corporate and Retail Banking System; to facilitate the daily clientele
requirements. DBL is always trying to improve their Customer Services in every sector, but in
today‟s Competitive Business World, Banks need to offer additional concentration to the
Clients‟ requirements in order to stay at the top. Therefore, besides dealing with the general
attributes of Different Products, they have been trying to put more emphasis on the Customer
Benefits and other Customer related Facilities.
4.2 Mission & Vision

The Mission of the Dhaka Bank Limited (DBL) is to be the Premier Financial Institution in the
country providing High Quality Products and Services backed by Latest Technology and a Team
of Highly Motivated Personnel to deliver Excellence in Banking.
“The stars in the seven skies sparkle in brilliance and twinkle in blissful beauty. We wonder at
them in profound admiration and speculation.
At Dhaka Bank we draw our inspiration from the distant stars. Our team is committed to assure
a standard that makes every banking transaction a pleasurable experience. Our people, products
and processes are aligned to meet the demand of our discerning customer. Our goal is to achieve
a distinction like the luminaries in the skies. Our prime objective is to deliver a quality that
demonstrates a true reflection of our vision - Excellence in Banking.”
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4.2.1 Goals of the Bank
 Long-term Goal:
To be the Market Leader both in terms of Deposits and good advances among Private
Commercial Banks in Bangladesh by the year 2009.
 Short-term Goal:
To increase Current Market Shares.
 Financial Goal:
To reduce the existing Cost of Fund
4.2.2 Values
 Customer Focus
 Integrity
 Team Work
 Respect for Individual
 Quality
 Responsible Citizenship
4.3 Management Committee
Mr. Khondker Fazle Rashid

Managing Director
Mr. Tanweer Rahim

Deputy Managing Director
Mr. Kaiser Tamiz Amin

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Mr. Neaz Mohammad Khan

Mr. M.M. Haikal Hashmi

Senior Executive Vice President
Head of Credit Compliance & Administration
Mr. Arham Masudul Huq

Company Secretary
Mrs Shamshad Begum

Principal, Dhaka Bank Training Institute &
Head of Human Resources Division
Mr. S.A.F.A. Musabbir

Executive Vice President
Legal & Recovery
Mr. Fakhrul Islam

Senior Vice President
Head of Operations
Mr. Shah Azizul Islam

In-charge, Retail Banking
Mr. Md Shahadat Hossain

In-charge- Credit Operations
Mr. Darashiko Khasru

Vice President
Head of Finance & Accounts Division
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Mr. J.Q.M. Habibullah

Vice President
Board Secretariat & Share Division
Mr. Imran Ahmed

Vice President
In-charge-RMU & Head BASEL-II Imp Cell
Mr. Syed Faisal Omar

Vice President
In-charge, Global Transaction Services
Mr. Md. Shaukat Ali Khan

Vice President
In-charge, SME Unit
Mr. Faruk Ahmed

Senior Assistant Vice President
In-charge, CPC-Trade Operations
Mr. A K M Ahsan Kabir

In-charge Internal Control & Compliance
Mr. Saiful Momin

In-charge, Information Technology Division
Mr. Mesbah Uddin Ahmed

In-charge, Syndication & Structured Finance
Mr. Shaikh Altaf Mahmud

In-charge, Monitoring
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Mr. Kamrul Aziz Nippon

First Assistant Vice President
In-charge, Capital Market Services
Mr. K. M. Faisal Faruqui

Assistant Vice President
In-charge Treasury Division
Mr. Ibrahim Khalil

Senior Principal Officer
Head of Public Relations & Brand Communication
4.4 Total Compensation and Benefits Package of DBL
4.4.1 Objectives
This chapter outlines the rules relating to compensation structure and the benefit
package of the Bank and gives detailed procedures for exercising them in order to
promote fair treatment and consistency within the organisation.
4.4.2 Salary Structure

Refer to the Salary & Remuneration Package Structure for Supervisors and Executive
Staff of DBL for details regarding the structure of salary and allowances for different
units under DBL.
4.4.3 Revision of Pay Elements

The compensation structure may be revised, if necessary, with the approval of the
Director, Admin/HR, Head of the Dept., Finance and the Chief Executive.
4.4.4 Employee Compensation Records

Employee Pay Records are maintained by the Personnel & Admin Department for
Workers and Supervisors and by the Human Resource Department for the Executives.
These departments maintain personal file of all employees where all records in
regards to the employee are kept in addition to any soft copy (in computer database)
23
maintained by the departments. These records are confidential and should not be
accessible to any unauthorised persons (authorisation defined by HR or Personnel &
Admin dept. head).
4.5 Basic Employee Benefits for Permanent Employees
4.5.1 Provident Fund
The Bank's Provident Fund is a funded scheme. All confirmed and permanent
employees are entitled to be members of the Provident Fund. The employee
contribution, equal to 10% of the basic salary, is deducted each month through the
payroll. The Bank contributes an equal amount and both the employees' and the
organization's contributions are paid to the Fund each month. In the Provident Fund
Ledger, both the employee's and the Bank's contributions are credited to the
individual employee's account.
The membership of the Trustees of the Provident Fund must include at a minimum:
a) Representation from the HR Department
b) Representation from Finance & Accounts Department
c) Two representatives from the Workers
4.5.2 Group Term Life Insurance
The Bank provides coverage of life insurance to all Permanent employees after their
joining with the organization effective on the date of joining. To participate in the
Group Term Life Insurance policy, all employees are required to fill up "Group Term
Life Insurance Registration Form", and submit to HR/Personnel & Admin dept for
processing. To change the beneficiary at any time, the employee must complete the
“Beneficiary Change Form”, and submit to the Human Resource Department or to the
Personnel & Admin dept for making the changes.
24
In the event of the death of an employee while in the bank‟s service, other than: 1)
death by suicide, 2) death by criminal prosecution, or 3) death by taking part in any
activities subversive of the state, the bank depending on the classification of
employees shall pay benefits on normal death and accidental death from insurance
bank as follows:
Employee classification Normal death benefit Accidental death

benefit
Executives 36 month last basic 72 month last basic
salary salary
Detail of compensation other than death (partial disability) will be determined as per
calculation within the purview of insurance coverage policy. No recovery or
adjustments of loans or salary advances etc. shall be made from the insurance claim
benefits. In addition to this coverage of insurance benefits compensation will also be
made as per "Workman's Compensation Act 1923" in the case of death/disability of
employees.
4.6 Bonuses
All confirmed Permanent employees of Dhaka Bank Limited are entitled to one
Annual Bonus each equivalent to “Basic Salary” under the following conditions:
Attendance in the Calendar Bonus Entitlement

Year
213 days + 100% of the Bonus
4.7 Meal Facilities
The following facilities are provided in each of the organisation under Dhaka Bank
Limited:
4.7.1 Branches
Executives:
 Meals are provided at a subsidised rate.
25
4.7.2 Head Office:

Executives:
 No meals are provided.
4.8 Accommodation
The Bank on the basis of requirements and availability provides accommodation to

DBL‟s Top Executives at their own established facilities in Dhaka city. Outside the
Dhaka city, the Bank provides expenses of the
4.9 Utilities Allowances
Executives between grades J to M4:
No utility allowance is paid.
Executives of grades M5 and above:
Telephone
Water
Electricity Gas (Local &
(Limit/Mont NWD)
Designation (Limit/Month) (Limit/Month)
h)
Taka Taka (Limit/Month)
Taka
Taka
Manager /
Sr.
Manager 2,500 At Actual At Actual At Actual
EVP and
At Actual At Actual At Actual At Actual
above
To get reimbursed for utilities bills, complete “Expense Reimbursement Form”, and
submit to the Accounts Department. The Accounts Department will make
reimbursement payment to the employee within 45 days from the date of submission.
Telephone bill has to be forwarded to the IT department, so payments can be made by
the company, if it is in the name of the Bank.
26
4.10 Medical Benefits
4.10.1 Medical Benefits for the Executive Staff

The bank will reimburse the cost of authorised medical treatments in Bangladesh
including hospitalisation, surgical and childbirth subject to the conditions mentioned
hereunder. In case of any overseas treatment prior approval from the Chief Executive
is required. The following are the basic guidelines in regards to medical benefits
provided to the Executives:
(i) Treatment to be carried out by a registered Medical Practitioner. The Bank

reserves the right to approve the Medical Practitioner consulted.
(ii) Dental treatment included as preventative measures, the Bank will reimburse
for „Upper and Lower‟ dental cleaning twice a year.
(iii) Reimbursement of the cost will be restricted to the treatment of the executive,
spouse and children.
(iv) Relevant details including names and dates of birth of spouse and the eligible
children should be sent to HRD for record.
(v) Children attaining 21 years of age or getting married, whichever is earlier,

will not be entitled to reimbursement of the cost of medical treatment.
(vi) Expenditure on medical treatment of Executives is reimbursed by the

company as per following entitlements:
(vii) Expenses Cannot not be claimed: The Bank will not reimburse the following
expenses:
 The supply of dentures and false caps.
 Any cosmetic dental work.
 The supply of spectacle frames.
 Special diets except in hospitals under medical advice
 Treatments not covered under paragraphs (i) and (ii)
27
4.11 Transportation Facilities and Car Purchase Scheme
4.11.1 Transportation Facilities for the Executives
4.11.1.1 Executives
DBL Branches:
There are no transportation facilities provided for the Executives between grade J to
M4
Head Office:
There are no transportation facilities provided for the Executives between grades J to
M4. For business purpose travel, Pool Car can be provided based on availability.
4.11.1.2 Car Purchase Scheme:

Senior Executives:
Employees in this grade, which is Managers, Senior Managers, and Vice President,
are eligible to apply for a Car Purchase Scheme upon the expiry of one month after
the date of joining in the Bank. To initiate the request for participating in this Car
Purchase Scheme, the employee is required to write a note to the HR Department. The
Human Resource Department then gets necessary approvals and then forwards the
request to the Head Office Admin department.
The objective of the scheme is to provide financial assistance to bank executives for
the purchase of cars and thus to provide executives with transport necessary for
carrying out their duties.
An employee who has acquired a car under this scheme will not be eligible to apply
again for a period of five (5) years. The following are the approved specification of
the transport and benefit given to the employee:
28
Description of the 1300/1500 cc new or reconditioned. Four door Sedan.

car :
Car Price : Tk 900,000/= (maximum Tk 1,000,000)
Purchase Employee – 50%; Bank – 50%
Contributions :
Fuel Allowance Allowance of 350 litters per month to be paid by the
Bank for worker based at Head Office and also
worker who are working at the branches.
Maintenance: Based on manufacturer‟s year model, for up to 6 year
old car, the Bank will pay a maintenance allowance
of Tk 3,000/= per month.
For 8 years or older cars, the Bank will pay a
maintenance allowance of Tk 4,000/= per month.
For 10 years or older cars, the Bank will pay a
maintenance allowance of Tk 5,000/= per month.
The money will be accumulated in the employee‟s
account in the accounts department and will be
utilised for repairs and maintenance when they arise.
The accounts department will be responsible to pay
the money immediately upon submission of paid in
receipt from the Workshops.
Driver : To be employed by the employee concerned. An
allowance of Tk 4,100 per month will be paid by the
Bank to cover the driver‟s salary.
Major Accidental Any vehicle under this scheme will maintain a 1st
Repairs Party insurance. The Admin. Department will ensure
filing of all insurance claims considering the amount
of money required to repair and the amount of
deductible. The amount of deductible and/or the
amount of repairs will be split 50:50 between the
employer and the employee if the balance of the
maintenance fund is not adequate to cover the
expenses. The employer initially will make the full
payment to the insurance company and/or to the
repair shop, then the portion of the employee will be
deducted from the salary in equivalent 12
instalments, if not covered by the insurance. The
Admin. Department (and the employee if willing to)
will supervise all repair work and do the
administrative tasks, then forward a bill of the
employees portion, signed by the employee, to the
Accounts Department for repayment.
29
Purchase of re-conditioned cars will be subject to inspection on behalf of the Bank, by

the Transport department or by a workshop designated for this purpose by them. The
car will be checked for engine and body condition, suspension and safety features.
The “Automobile Inspection Report” will be completed and signed by the
Administration Department for processing the request of car purchase.
The company, bank or a leasing company may finance the purchase of the car. The
car will be initially registered as follows:
By the company - in the name of the company

Through a bank loan - as stipulated by the bank
Through a leasing contract - in the name of the leasing
company
The employee‟s 50% contribution towards the cost of the car will be paid by him to
the Bank in equal monthly instalments over a period of three years if the car is
financed by the Bank, or over a period equal to the currency of the loan or leasing
contract, as the case may be.
If the car is acquired through a leasing contract or a bank loan, the employee will be
required to contribute 50% of the lease payments or loan instalments every month
until the expiry of the lease period.
If the price of the car exceeds Tk 1,000,000 the employee will pay the amount in
excess of Tk 1,000,000 to the company in cash.
The Bank‟s 50% contribution to the cost of the car will be amortised over a period of
five years. After the expiry of this period, or the expiry of the leasing contract if the
car has been leased, or the repayment of the bank loan if the car has been acquired
through a bank loan, and subject to prior receipt of the final instalment of his
contribution, the ownership of the car will be transferred to the employee. Costs
incurred in connection with the transfer will be payable by the employees.
In the event that the employee leaves the Bank before the expiry of five years, he shall
have the option to purchase the car from the Bank at the written down value in the
books of the Bank, plus the total of the unpaid instalments towards, his own
contribution. This option to purchase will only be available to an employee who has
30
been with the company for a minimum period of two years. In case he does not
choose to exercise the purchase option, the Bank will reimburse the employee 75% of
the amount contributed by him/her towards the cost of the car, and the car will then
remain in or be transferred to the ownership of the Bank.
The employee will be expected to use the car for the Bank‟s business as well as for
fulfilling his private transport needs, including the transport of children to school, etc.
Employees who have availed for this scheme are expected to meet all their
transportation needs with the vehicle provided under scheme. No other transport will
be provided to an employee who has availed of this scheme. However, if the
employee is asked to travel outside Dhaka on Bank‟s business, he will be reimbursed
at Tk. 6/- per km, subject to prior permission from his department head, plus an
allowance of Tk. 100/- per day for the driver. Tolls and other expenses will be paid at
actual.
Repairs and maintenance of the vehicle will be the responsibility of the employee. A
maintenance allowance will be paid as explained earlier in this section.
All taxes, fees, duties, registration costs, and insurance will be paid by the Bank. The
employee must inform the Admin Department one month prior to the due date for
Fitness/Insurance and the Admin Department will take full responsibilities to
complete the said tasks.
The Bank‟s approval to participate into this scheme will be based on the nature of the
employee‟s job and on the availability of funds with the Bank, at the time when the
application to join the scheme is made.
The employee may choose to select a car that is presently in the name of the Bank and
if made available to the employee for purchase. The administrative department will be
responsible to identify the market value of the car, get approval from the HR
Department, and make an offer to the employee. For the purchase of the company car,
the employee shall be liable to pay 50% of the market value of the vehicle, in equal
monthly instalments to the Bank over a period of three (3) years. All other terms and
conditions shall remain the same.
The Management reserves the right to change, modify, amend, cancel or waive any or
all of the provisions of this scheme at its absolute discretion and without any prior
31
notice and also to withhold or reject any application to join the scheme, without
assigning any reason whatsoever.
Top Executives
Top Executives of grade M6 and above, i.e. Sr. Vice President and above are entitled
to 24 hours company paid transportation. The company also pays for the fuel at cost,
Driver‟s salary, and for all necessary maintenance/repair and administrative cost of
the vehicle.
4.12 Leave Entitlements
4.12.1 Basic Leave Types
All Permanent Executives of the Bank are entitled to various types of Leaves that are
calculated based on calendar year and prorated from the date of joining the Bank's
service for the first year. Leave entitlements of expatriate (Contract) employees shall
be governed by their respective terms of employment with the company specified in
the Appointment Letter.
For Employees the leave entitlements are calculated in accordance with "The Shops
and Establishment Act 1965", Factories Act 1965 and the Factory Rules 1979.
These entitlements are as follows:
Types of Leave Days Per Year

Casual Leave (with full wages) 10
Sick Leave (on ½ average wages) 14
Earned Leave (1 for every 22 days 12
actual work with wages)
Public Holidays 10 (minimum)
32
The following are the Basic Leave entitlements for the Executives at Head Office:

Weekends (with full wages) As per Section 5.5
Sick Leave (with full wages) 10
Earned Leave 15
As per list of holidays
Public Holidays
declared by the Govt.
The following are the Basic Leave entitlements for the Executives at Branches:

Earned Leave 15
Public Holidays for Head Office worker are governed by the policy of the Board of
Directors of the Bank and is based on the list of holidays declared by Govt. For
Branch employees, the Management determines the Public Holidays (minimum 10
days) and it is announced at the beginning of the year.
4.12.2 Definitions of Basic Leave Entitlements
The following are some definitions of Basic Leaves entitlements:
4.12.2.1 Casual Leave

Entitlement to casual leave for the Executive at Head-Office and Branch Site, it is 15
days based on each calendar year. The employee is entitled to exercise Casual Leave
from the very next day of joining; though the Casual Leave is pro-rated for the
balance period of the year counting from the joining date.
33
Casual leave cannot be availed for more than three days at a time. Also, it cannot be
carried forward to the following year or cashed. Casual Leave can be taken with
Weekends, Public Holidays, Earned Leaves, etc. but be limited to only 3 days.
4.12.2.2 Sick Leave

Entitlement to Sick Leave for the Executives at Head-Office and Branch Site it is 15
days on the basis of each calendar year. The employee is eligible to exercise the Sick
Leave benefit from the date of his/her joining. The above entitlements represent the
maximum number of days Sick Leave that an employee can avail in a year. Normally,
medical certificates are not required but if the sick leave exceeds three days at a time
or if it is being taken as an extension of Earned Leave, then a Medical Certificate is
required. Where this is not the case an application for Sick Leave is considered
enough. Sick leave cannot be carried forward to the succeeding year and cannot be
cashed. If an employee is sick on Weekend or on a Public Holiday, that day will not
be counted as a sick day and the number of Sick Leave taken out of his/her allocated
days will be excluding those days.
4.12.2.3 Earned Leave

Entitlement to Earned Leave for the Executives at Head-Office and Branch Site is 15
days on the basis of each completed year of service. A maximum of thirty (30) days
can be accumulated. Any accumulation beyond this will automatically lapse on the
following 1st of January each year. The entitlement to Earned Leave is exclusive of
Weekends and Public Holidays i.e., Weekends and Public Holidays falling during the
annual leave taken will be considered additional to the entitlement.
Though Earned Leave is counted from the date of joining but it cannot be taken until
the employee passes the probationary period receiving confirmation.
4.13 Other Leave Options
The following sections explain some additional leave options that an employee may
exercise depending on the need.
34
4.13.1 Maternity Leave
Married woman employees are entitled to Maternity Leave benefit as per "The
Maternity Benefit Act, 1939". The period of Maternity Leave shall be 84 actual days
of absence which shall include the Public Holidays and Weekends (non-working
days) and including the day of delivery. The entitlement to maternity leave is to be
availed as follows:
 Six weeks or 42 days immediately preceding and including the day of delivery.
 Six weeks or 42 days immediately following the day of delivery.
 A woman shall not be entitled to maternity leave unless she has been employed
by the Bank for a period of not less than nine months immediately preceding the
date of delivery.
4.13.2 Study Leave
An Executive may be granted Study Leave, with or without pay, entirely at the bank‟s
discretion, once s/he has been in the bank for at least one year. Study leave is
normally granted if the course of study which the employee intends to pursue is likely
to benefit the Bank‟s operations. Study Leave can be given for up to a maximum
period of two years.
4.13.3 Hajj Leave
A Permanent Executives who intends to perform Hajj at his own expenses, upon
completion of one year of service, may be allowed for a 45 days Hajj Leave with pay
at the sole discretion of the management. This leave can only be availed once in the
entire period of service.
Similar leave may be granted for employees other than Muslims, if the occasion is a
once in a life time holy event significant to the believers.
4.13.4 Special Leave
Special leave may be granted to the Permanent or Contract employees with or without
pay and allowances at the sole discretion of the management. Application for special
35
leave should be forwarded to HR/Personnel department, through the relevant

departmental head, along with appropriate reasons and recommendations for
necessary action. Some examples of such leave request may be for marriage, death in
the family, etc.
4.13.5 Leave Encashment
Executives before leaving the Bank due to resignation, retirement or termination are
allowed to cash the Earned and Compensatory Leave due to them up to a maximum of
30 days, while for workers it is 20 days plus the prorated entitlement for the current
year. The amount paid on encashment includes only the employee's last drawn basic
salary for the period. Allowances are not included in this amount.
4.13.6 Maintenance of Leave Records
Approved leave applications received from departments are entered in a Leave

Register and the lower portion of the leave application showing the balance of leave is
sent to the employee. Leave records for all Executives and Head Office Staffs are
maintained by HR Department.
4.14 Financial Assistance Schemes
4.14.1 Objectives
To meet various emergency and incidental expenses, the Bank provides financial
assistance in the form of advance payment of salary and loan against provident fund
to its employees. The following sections give detailed procedures for salary advances
and loan sanctions under Financial Assistance Schemes.
4.14.2 Priorities for Loan against Provident Fund (PF) or Salary Advance
The following priorities will be maintained for PF loan or salary advance request
processing:
36
1. Medical emergencies for spouse or children
2. Death of Spouse or children
3. Medical emergencies for other dependent
4. Death of other dependent
5. Rental advance
6. Own marriage
7. Other emergencies
8. Marriage of siblings
9. Education
10. Other requirements
4.14.3 Loan against Provident Fund (PF) or Salary Advance Eligibility and
Limits
4.14.3.1 Loan against Provident Fund

1. All Permanent employees who have contributed to atleast18 instalments in the
Contributory Provident Fund of Dhaka Bank Limited and have been in the Bank
for less than 3 years, are eligible to take loan against the provident fund equal and
up to 75% of the employee’s own contribution.
2. All Permanent employees who are members of the Contributory Provident Fund
and have been in the Bank for more than 3 years but less than 4 years, are eligible
to take loan against the provident fund equal and up to 100% of the employee’s
own contribution.
and have been in the Bank for more than 4 years but less than 5 years, are eligible
to take loan against the provident fund equal and up to 70% of the total
contribution (employee‟s own contribution + Bank‟s contribution).
37
and have been in the Bank for more than 5 years are eligible to take loan against
the provident fund equal and up to 75% of the total contribution (employee‟s
own contribution + Bank‟s contribution).
4.14.3.2 Salary Advance

Salary Advance is given only in those situations where the Permanent employee does
not have enough contribution to the Provident Fund but the urgency is very high.
Usually one month‟s average gross salary is given as advance but based on the
emergency; a maximum of two months‟ salary can be given as advance.
4.14.4 Repayment of Loan or Salary Advance
One month‟s grace period is given to the employee before the repayment starts. The
employee, through automatic deductions by the Accounts Dept. from his/her Pay-
check, makes the payment. The following are some guidelines for repayments:
1. If financial situation permits, the employee is asked to pay the money back with 6
equal monthly payments.
2. If the financial situation does not permit, the employee is given the opportunity to
pay back with 12 equal monthly instalments.
3. If the amount of loan is large and the repayment imposes hardship on the
employee, it may be considered to extend the repayment schedule to a maximum
of 24 equal instalments. In such cases, the Department Head of the employee must
recommend the accounts department to do so.
4. If the loan or advance is related to medical payments and the employee is eligible
for medical benefit, the advance/loan will be applied towards the eligible benefit
once the treatment is received. Upon receipt of all medical vouchers, the employee
is required to submit “Medical Bills Reimbursement Form”, as per guidelines
provided in Section 6.12.2 and apply the advance/loan towards the refund. Any
excess amount taken as advance/loan must be paid back immediately after the
treatment is over.
38
4.14.5 Procedures to Apply and Processing of a Loan or Salary Advance

Request
The employee completes a “Loan Application Form”, and upon receiving an approval
from the Department Head, submits to the Accounts Department. The Accounts Dept.
personnel review the application, discuss with the employee if necessary, and let the
employee know about the outcome. At the time of processing the loan/advance
request, the Accounts Dept. identifies the repayment agreement discussing with the
employee.
The following are guidelines for loan/advance approving:

Loan Amount (Tk) Approval Authority
< or = 5,000.00 Section Head responsible for
Loan/Advance
>5,000.00 < or = Second level authorisation by
20,000.00 Manager or above.
> 20,000.00 Department Head
39
5. United Commercial Bank Ltd.
5.1 Background of United Commercial Bank Ltd (UCBL)

Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country
and also participated by the Government, UCB started its operation in mid 1983 and has since
been able to establish one of the largest networks of 102 branches among the first generation
banks in the private sector.
With its firm commitment to the economic development of the country, the Bank has already
made a distinct mark in the realm of Private Sector Banking through personalised service,
innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a
leading role in the economic activities of the country, is firmly engaged in the development of
trade, commerce and industry thorough a creative credit policy.
5.2 Mission Statement

To be the bank of 1 st choice through maximizing value for our clients, shareholder and
employees and contribution to the society.
5.3 Management
The Bank has in its Management a combination of highly skilled and eminent bankers of the
country of varied experience and expertise successfully led by Mr. M. Shahjahan Bhuiyan, a
dynamic banker, as its Managing Director and well educated young, energetic and dedicated
officers working with missionary zeal for the growth and progress of the institution.
SENIOR MANAGEMENT
Managing Director
Mr. M. Shahjahan Bhuiyan
Additional Managing Director
(Operation)
Mr. Shafiqul Alam
40

(Corporate Banking Division)
Mr. M. Shahidul Islam
(International Division)
Mr. Mamun-Ur-Rashid
Mr. Mirza Mahmud Rafiqur Rahman
Mr. Md. Shahed Jalal Chowdhury
Mr. Nurul Alam
Mr. Mohammad Shawkat Jamil
Mr. Md. Tariqul Azam
Mr. Md. Zahirul Alam
Mr. Barun Kanti Saha
Mr. Md. Sohrab Mustafa
Executive Vice President

Mr. Golam Awlia
Mr. Muhammad H. Kafi
Mr. Abu Saleh Md. Abdul Mazed
Mr. Md. Quamrul Hassan

Mr. Chandan Sen Gupta
Mr. Md. Yunus
Mr. Badiul Alam
Mr. Abu Sadeque Miah
Mr. Mahmudul Bashar Khan
Mr. Md. Ekram Ullah
Mr. Md. Delwar Hossain Mazumder
41
Mr. Abul Alam Ferdous

Mr. Md. Ahaduzzaman
Mr. Md. Jasim Uddin
Mr. Md. Habibur Rahman
Mr. Md. Habibur Morsalin
Mr. Md. Shahadat Hossain Shohag
Mr. Mian Quamrul Hasan Chowdhury
Mr. Md. Ehsanul Kabir
Mr. Abu Nur Md. Parvez Sajjad
Mr. Mizanur Rahman
Mr. Kazi Muzibul Islam
5.4 Total Compensation and Benefits Package of UCBL

5.4.1 Objectives
This chapter outlines the rules relating to compensation structure and the benefit
package of the Bank and gives detailed procedures for exercising them in order to
promote fair treatment and consistency within the organisation.
5.4.2 Salary Structure

Refer to the Salary & Remuneration Package Structure for Supervisors and Executive
Staff of UCBL for details regarding the structure of salary and allowances for
different units under UCBL
5.4.3 Revision of Pay Elements

The compensation structure may be revised, if necessary, with the approval of the
Director, Admin/HR, and Head of the Dept., Finance and the Chief Executive.
5.4.4 Employee Compensation Records

Employee Pay Records are maintained by the Personnel & Admin Department for
Workers and Supervisors and by the Human Resource Department for the Executives.
These departments maintain personal file of all employees where all records in
regards to the employee are kept in addition to any soft copy (in computer database)
42
maintained by the departments. These records are confidential and should not be
accessible to any unauthorised persons (authorisation defined by HR or Personnel &
Admin dept. head).
5.5 Basic Employee Benefits for Permanent Employees
5.5.1 Provident Fund

The Company's Provident Fund is a funded scheme. All confirmed and permanent employees
are entitled to be members of the Provident Fund. The employee contribution, equal to 10% of
the basic salary, is deducted each month through the payroll.
The Company's Provident Fund is a funded scheme. All long-established and enduring
employees are at liberty to be members of the Provident Fund. In the Provident Fund Ledger,
both the employee's and the Company's contributions are accredited to the individual employee's
account.
5.5.2 Bonuses
All confirmed Permanent employees of United Commercial Bank Limited are entitled to one
Annual Bonus each equivalent to “Basic Salary” under the following conditions:
Attendance in the Calendar Bonus Entitlement

Year
5.5.3 Accommodation
The Bank on the basis of requirements and availability provides accommodation to UCBL‟s Top
Executives at their own established facilities in Dhaka city. Outside the Dhaka city, the Bank
provides expenses for the accommodation.
43
5.6 Utilities Allowances

Telephone
Electricity Gas Water (Local &
Designatio (Limit/Mont (Limit/Mont (Limit/Mon NWD)
n h) h) th) (Limit/Mont
Taka Taka Taka h)
Taka
Manager /
Sr.
Manager 2,500 At Actual At Actual At Actual
EVP and
At Actual At Actual At Actual At Actual
above
Other
1500 450 1000 No
employees
The Accounts Department will make compensation payment to the employee within 30 days
from the date of submission. Telephone bill has to be forwarded to the HR department, and then
they forwarded that bill to IT department, so payments can be made by the company, if it is in
the name of the Bank.
5.7 Mobile Telephone

Based on the UCBL‟s business need, a mobile telephone provided to a permanent or contract
employee. To receive this benefit, a written application should be forwarded to the Department
Head, IT upon approvals of the employee‟s Department Head and In charge of the site/factory if
applicable.
The mobile phone is to be used first and foremost for business purpose, though can be utilised
for being in contact with the family members, if necessary with logical discretion due to the high
cost of mobile phone usage.
44
5.8 Medical Benefits
Medical Benefits for the Executive Staff
The bank will compensate the cost of authorised medical treatments in Bangladesh including
hospitalisation, surgical and childbirth subject to the conditions mentioned here. The Bank
reserves the right to approve the Medical Practitioner consulted.
Dental treatment included as defensive measures, the Bank will reimburse for „Upper and
Lower‟ dental cleaning twice a year. Reimbursement of the cost will be restricted to the
treatment of the executive, spouse and children. Expenditure on medical treatment of Executives
is reimbursed by the company. Every employees are not get the medical benefits.
5.9 Car Purchase Scheme

Board of directors are entitled to 24 hours company paid transportation. The company also pays
for the fuel at cost, Driver‟s salary, and for all necessary maintenance/repair and administrative
cost of the vehicle. Car purchase scheme has to be changed into(for the top management, middle
management get allowance for driver and fuel cost but need to buy the car with own expense
where loan facility is available from the bank/interest redemption)
LOAN SCHEME – All employees are eligible to any purpose loan provided they have served
the organization for 2 years
5.10 Leave Entitlements
5.10.1 Basic Leave Types

All Permanent Executives of the Bank are entitled to various types of Leaves that are calculated
based on calendar year and prorated from the date of joining the Bank's service for the first year.
Leave entitlements of expatriate (Contract) employees shall be governed by their respective
terms of employment with the company specified in the Appointment Letter.
45
The following are the Basic Leave entitlements for the Executives at Head Office:

Earned Leave 15
As per list of holidays
Public Holidays
declared by the Govt.
The following are the Basic Leave entitlements for the Executives at Branches:

Earned Leave 15
5.10.2 Definitions of Basic Leave Entitlements
5.10.2.1 Casual Leave

Entitlement to casual leave for the Executive at Head-Office and Branch Site, it is 15 days based
on each calendar year. The employee is entitled to exercise Casual Leave from the very next day
of joining; though the Casual Leave is pro-rated for the balance period of the year counting from
the joining date.
Casual Leave can be taken with Weekends, Public Holidays, Earned Leaves, etc. but be limited
to only 3 days.
5.10.2.2 Sick Leave

Entitlement to Sick Leave for the Executives at Head-Office and Branch Site it is 15 days on the
basis of each calendar year. The employee is eligible to exercise the Sick Leave benefit from the
date of his/her joining. The above entitlements represent the maximum number of days Sick
46
Leave that an employee can avail in a year. If an employee is sick on Weekend or on a Public
Holiday, that day will not be counted as a sick day and the number of Sick Leave taken out of
his/her allocated days will be excluding those days.
5.10.2.3 Earned Leave

Entitlement to Earned Leave for the Executives at Head-Office and Branch Site is 15 days on the
basis of each completed year of service. The entitlement to Earned Leave is exclusive of
Weekends and Public Holidays i.e., Weekends and Public Holidays falling during the annual
leave taken will be considered additional to the entitlement.
Though Earned Leave is counted from the date of joining but it cannot be taken until the
employee passes the probationary period receiving confirmation.
5.10.2.4 Maternity Leave

The period of Maternity Leave shall be 84 actual days of absence which shall include the Public
Holidays and Weekends (non-working days) and including the day of delivery.
5.10.2.5 Study Leave

Study leave is normally granted if the course of study which the employee intends to pursue is
likely to benefit the Bank‟s operations.
5.10.2.6 Hajj Leave

Special leave may be granted to the Permanent or Contract employees with or without pay and
allowances at the sole discretion of the management.
5.10.2.7 Special Leave

Extraordinary leave may be decided to the enduring or Contract employees with or without pay
and allowances at the sole discretion of the management. Application for special leave should be
forwarded to HR/Personnel department, through the relevant departmental head, along with
appropriate reasons and recommendations for necessary action. Some examples of such leave
request may be for marriage, death in the family, etc.
47
6. CONCLUSION
This study research has been focused on the compensation system, practiced by two private
banks of Bangladesh. There are some components that are taken into consideration during pay in
our country, but it varies significantly among banks regarding pay. It could have been better, if
we might have worked with all types of banks. Here in our study we have worked with only one
type of bank. In our study we have tried to focus on the pay differences, possible reasons of
using different pay components used by the banks in our country. Finally, we came up with
some recommendations, which can be used for both of the banks so that they can perform better.
48
7. Appendix
49
INDEPENDENT UNIVERSITY, BANGLADESH
Topic: Compensation & Benefits Survey Questionnaire
50
Please put the tick mark into your choices and write your opinions where necessary
1. State how long you have been working in your organization?

Less than one year:
1- 3years:
3- 5 years:
5- 9 years:
More than 10 years:
2. What is your job description including designation & department?
3. Do you believe that your job profile is benchmarked with the same jobs in the
industry and market place?
4. How many hours do you work per day?

5-6 hours 6-7 hours 8-9 hours more
5. How the company gives promotion to their employees?
Based on time Performance Other
6. Does your company utilize a traditional salary grade system? Yes� No�
If yes, please answer the following questions.
What was your starting salary?

15-25 25-35 35-45 more than 45
Does your company offer salary increment?
Yes� No�
How often is the salary structure reviewed? ____________________
When was the last time it was adjusted? ____________________
By what percentage? ______________%
Does your company give a general increase? Yes� No�
Does your company give a cost of living increase? Yes� No�
51
7. Does your company have a formal employee merit review process? Yes� No�
8. Does your company have a bonus or incentive plan? Yes� No�

If yes, please answer the following questions.
What type of bonus? Annual Bonus Incentive Bonus Other
What is was the average bonus paid last year?
Tk._____________________________
What is this year‟s projected average bonus? _____________________________%
9. What criteria does your human resource department use to arrive at giving
allowances and benefits to employees?
____________________________________________________________
10. Please mark the benefit plans offered by the organization:
Benefits Offer Not-offer

Pension Plan
Retirement Profit Sharing
Medical
Short Term Disability
Long Term Disability
Life Insurance
Vacation
Holidays
Personal Days
Sick Time
11. What is the waiting period before benefits are paid? _______weeks
12. Do you get any reimbursement for training or professional development?

Yes� No �
13. When is reimbursement made?
Starting period� At completion of the course/semester� Middle period� Other�
14. What is the maximum reimbursement amount an employee can receive per year?
Tk.________
15. Are you permitted time off from work to attend classes?
Yes, with pay� Yes, without pay� Only in special cases� No�
THANX A LOT FOR YOUR KIND ASSISTANCE
52
8. REFERENCES
~ Richard I. Henderson, Compensation Management in a Knowledge Based World, 10 th
Edition, Pearson.
~ Websites of both DHAKA BANK LIMITED & United Commercial Bank Ltd.
53

Compensation System of DBL &amp UCBL

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HRM-370 Compensation System of DBL & UCBL

Mr. Monzoor Morshed

Subject: Letter of transmittal

It is great pleasure to submit a report on “Compensation System of an Organization

Md. Ahsanul Hoque ID#0820023 ____________________

4.12.1 Basic Leave Types ............................................................................................................................ 32

1.1 Background of the Study

1.2 Objectives of the Study

1.2.1 to discover the Practice of Compensation System in the selected

maintain their commitment to the organization are essential to achieving organizational

1.2.2 to relate classroom study with that of real life situation

1.3 Scope of the Study

 What indirect plans of compensation are commonly used in the organization?

 What specific plans are available from which to choose?

 What benefits, incentives and rewards are provided?

In order to supplement our theoretical knowledge in Human Resource Management with

The limitations are:

Compensation is a systematic approach to provide monetary value to employees in exchange of

Compensation may be used to:

Compensation will be perceived by employees as fair if the approach is based on systematic

2.1 AN OVERVIEW OF BANKING SECTOR IN BANGLADESH

The sector can be diagramed as follows:

Specialized Banks Commercial Banks Non-Banking

Nationalized Banks Private Commercial Foreign Banks

A brief description of each of the groups is noted here:

2.1.1 Bangladesh Bank

2.1.2 Specialized Banks

The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which

 Bangladesh Krishi Bank

 Bangladesh Shilpa Bank

 Rajshahi Krishi Unnayan Bank

 Bangladesh Shilpa Rin Sangstha

 Basic Bank Ltd (Bank of Small Industries and Commerce)

 Bangladesh Somobay Bank Limited(Cooperative Bank)

 The Dhaka Mercantile Co-operative Bank Limited (DMCBL)

2.1.3 Nationalized Banks

2.1.4 Private Commercial Banks

 BRAC Bank Limited

 Dutch Bangla Bank Limited

 Dhaka Bank Limited

 Islami Bank Bangladesh Ltd

 IFIC Bank Limited

 United Commercial Bank Limited

 NCC Bank Limited

 Prime Bank Limited

 Exim Bank Limited

 Bank Asia Limited

 Trust Bank Limited and many more

2.1.5 Foreign Commercial Banks

 Standard Chartered Bank

 Commercial Bank of Ceylon

 State Bank of India

 National Bank of Pakistan and many more

3. THE SEGMENTS OF PAY COMPONENTS

The compensation package has been divided into five segments:

3.1 MONTHLY GUARANTEED CASH

3.2 ANNUAL GUARANTEED CASH

3.3 ANNUAL VARIABLE CASH

3.4 TERMINAL BENEFITS

3.5 MONTHLY COST OF BENEFITS

~ Company Leased Accommodation

~ Pickup-Drop / Transportation Cost