Pubali Bank Limited

SWOT Analysis

OVERALL STRENGTH OF THE BANK : 1. Historically established with More than 50 years "Going Concern" and " Public confidence & Acceptability" of Pubali Bank Limited to the general masses. 2. We are running with surplus capital. 3. The bank has 400 branches, 16 Regional Offices and 9 Corporate branches having 234 online branches. 4. Having 100% computerized banking network with our own software. 5. Strong customer base having low cost & stable deposits. 6. Having comfortable liquidity position (LD ratio less than 85%). 7. Efficient Asset-Liability Management. 8. Possession of good quality assets & low rate of non-performing loans (2.57 %) Development of home grown robust online banking software for operating all kinds of IT based banking activities & continuing of the same in future. 9. Ownership of huge quantity of depreciated fixed Assets & appreciated Real Estimate Assets. 10. Large number of experienced human resources. 11. Strong capital base and steady & continuous growth of the bank in alll respect over the past years. 12. Presence of prudent leadership endowed with experience & efficiency both at the management level & Board of Directors level. 13. Advantage of low cost fund and efficient management of the treasury of the bank. 14. Strong reputation in the market and dynamic capabilities to adopt with the changing environment & demand of the time. 15. It has experienced in both public and private sector with the management having adaptability as and when required. 16. Pubali Bank Limited has both conventional and Islamic banking service to sub-serve the needs and goals of the time. 17. Complaint bank in all respect as per guidelines of Regulators. 18. Separate Law Division is working in providing legal service. 19. It is improving in the performance constantly with sound growth. 20. Recruitment procedures to select manpower is both transparent as well as standard on any count. 21. Maintenance of capital adequacy, comfortable liquidity position. 22. It has good reputation as compliance bank. 23. It has gradual & continuous improvements in the performance. 24. It has diversified feed range of banking and non banking financial service & product. 25. Remarkable foreign exchange reserve & credible Foreign Trade Payment. 26. No hidden charges to any service. 27. Good foreign exchange reserve with good inflow.

OVERALL WEAKNESS OF THE BANK : 1. Dependability on small number of big borrowers for income generation and lack of diversification of product & services. 2. Marketing team is very weak at the branch & HO level. 3. Lack of branding and corporate culture. 4. Physical condition of maximum branches are incompetent and poor looking in comparison to conditions of branches of other banks. 6. Employee turnover rate is very high. HR policy is not attractive considering other bank's HR policy. 7. Low wage in comparison to other competitors. 8. Absence of desired level of service environment in the branches. 9. Maximum employees are demoralized due to low salary package of the bank. 10. Inherited draw backs of uncongenial working culture & legacy of bad debts. 11. High rate of migration of young human resources from the bottom level and the immediate mid level demoralization by seeing glamorous and high salary of competitors bank. 13. Serious shortage of efficient human resources especially at the mid level and at the top tier inspite of having huge number of employees int the bank. 14.Failing to provide quality services with all kinds of modern and automated services to the customer. 15. Internal environment and capability and management information.system not yet competent to meet the needs and to face the challenges efficiently and promptly. 16. Decentralization is not up to the mark for all section of employees and red tape culture is also evident to some extent. 17. Survey of other banks to pick up strategy for quick service, quick decision and quick implementation. 18. New theme of marketing and deposit haunting in comparison with other bank. 19. Lack of motivation of officers especially cash officer to ensure better customer service for banking transaction. 20. Lack of quick decision implementation better & satisfactory customer's service in branches, Regional office & Head Office level in comparison with other new generation banks. 21. There are some loss branches. 22. Credit management required to be strength having large loan risk 23. Lack of long term planning 24. Less investment and looking for short term return in the last mile solution. 25. Low level of computer literacy. 26. No dynamic services compared to other private commercial banks. 27. Traditional Management Information System (MIS). 28. Lack of centralized digital data centre for MIS. 29. Insufficient delegation of authority. 47. Weak Credit Management. 30. Insufficient logistic supports. 31. Lack of complete central data centre.

OVERALL OPPORTUNITIES OF THE BANK : 1. Better & unique customer service can help the bank to achieve our goal through 400 branches. 2. Froeign remittance may be increased through the motivation of Bangladeshies in abroad by way of sending PBL representaitive. 3. Own softwear is our positive side for extending better service to the customer. 4. Banks profit may be increased through SME & Lease financing loan. 5. We can increase our micro credit financing through our wide branch network. 6. We can expand our foreign exchange business. 7. We can capatalize our acceptability to the mass people. 8. We can introduce more consumer banking products including credit cards, internet banking, mobile banking etc. 9. Strong possibilty and scope of tapping vast segment of still unbanked people of the country through wide and strong network of branches of the bank. 10. Launching of new products such as credit card, internet banking and mobile banking with special target to take a lot of unbanked people into the network and to encourage opening of new account to be substantiated in the true sense. 11. To encourage payment of installments against loan product through account maintained in Pubali Bank Limited and in other words every loanee must have account with us. 12. Development of belongingness through recruitment of employees dependents competent relations. 13. Both in house and outside CSR activities with due coverage 14. Trained up officer / executive in the field of consortium loan as a lead arranger may have vital role. 15. To face the challenge of the competitor & new banks with modern product & superior customer service. 16. Expansion in international market. 17. Service to multinational & small private sector banks through its branch network. 18. Scope of extending branch networks to serve mass people. 19. Investment in Agro-based Industries. 20. Scope of increasing inward Foreign Remittance. 21. Introduction of admirable lending/deposit schemes. 22. Introduction of various E-banking products and services such as Debit Card, Credit Card, Mobile Banking, Internet Banking, ATM, POS, etc. 23. Adaptation of Green Banking. 24. Scope of Offshore Banking. 25. Gear up of marketing operations. 26. Expansion of Corporate branches and AD branches. 27. Introduction of new deposit schemes such as Hajj Saving Scheme, School Banking, Marriage Saving Scheme, House Building Deposit Scheme, etc. and new lending schemes such as Loan to Service Holders, etc 28. Green Banking. 29. Envestment in Agro-based Industries.

OVERALL THREATS OF THE BANK : 1. Officials migration to other banks. 2. Large loan backed by no security. 3. Excessive competition from private bank. 4. Liquidity crisis in the country. 5. Emerging new banks. 6. Changes in central bank's policy regarding interest rate. 7. Steep (Cut Edge) and unhealthy competition in the finanacial market of the country may despoil the growth of the bank. 8. High inflation rate and (Double Digit) and mismatch of balance of payment as well as posibility of instability of macro economy of the country may stand as a barrier of the way of growth of the bank. 9. Global credit crunch and possibility of second time recession of the global economy may slow down the national economy. 10. Shortage of fund due to huge government borrowing from the financial market. 11. To comply with the regulatory barriers. 12. Possibility of unstable political environment in near future. 13. For want of quick disposal of non banking property in real estate sector and obtained through enjoyment and ownership under the Artha Rin Adalat Ain,2003. 14. Fraud and forgery in IT sector and other banking service sector. 15. Changes in banking laws, central bank's policy regarding interest rate, CRR, SLR, High inflation. 16. Competition with third generation private commercial banks. 17. Upcoming crisis of power, gas, electricity, fuel oil, etc. 18. Unrest in the Middle East countries resulting threat of manpower trade as well as foreign remittance. 19. Risk of IT security. 20. Aggressive banking of other private banks.

Pubali Bank Limited

Template of Strategic Map

VISION : 1. Providing Customer-Centric Life Long Banking. MISSION : 1. To become most remarkable & admirable private commercial bank in the country. To get recognition as a dynamic innovation and customer service oriented bank. To keep momentum of continuous and steady growth with maximum transparency and to diversify products and resources. 2. Our mission is to enhance our customes' business by providing the very highest quality products services possible. 3. No compromisation of customer satisfaction and we continually strive to offer a complete package of upto date value added solution to meet up our customer needs. 4. To participate and contribute to the economic and financial well being of the organization alongwith serving national interest. 5. Providing value addition to the customers and serving the institution with good corporate governance. 6. Development of relationship management towards safe, sound and stable financial growth and efficient banking service to its customer including sound economic and financial advice. 7. Maintaining highest compliance to the regulators and satisfy all other stake holders to go ahead with the highest standard corporate governance and professional excellence. 8. Sound international financial relationship with the counter parts. 9. To render high quality customer oriented banking services to customers and to achieve steady growth with maximum transparency. 10. To ensure quality and effective services to customers and steady/sustainable growth with maximum transparency. 11. To become an admirible private commercial bank within the country with reputation. KEY GOALS : 1. Mass Banking Service 2. Modernized banking 3. Maximize profit with minimum cost 4. 100% Compliant Bank 6. To provide financial solutions that anticipate their needs 7. Exercise corporate culture 8. Be 100% compliant bank 9. To maximize the earnings of the bank in 2012 than other fellow competitors 10. To introduce new electrronic products like credit cards/debit cards/ATM booths services and other e-products in the year 2012 and expansion of POS and services all over the country by next 5 years 11. To overhaul present environment & culture of service within next 2 years 12. Ensure customer service in providing financial solution and thereby ultimately serve the institution and nation as well. 13. Taking into consideration of market practice for fair banking all out measures are to be structured in day to day business.

14. In conjunction with the vision maximization of profit and minimization of risk is to be achieved. 15. Using best technology and efficient manpower strengthening international financial relations is set in the priority list. 16. Build a powerful organisation with the structure career development training and rewards to ensure the achievement of visions. 17. To become number 1 (one) front line private commercial bank. 18. To maintain and upgrade the present comfortable capital adequacy, improve asset quality, continued profitability, adequate liquidity and reduction of NPL at 1.80%. 19. To build up up-to-date information & communication technology with all modern facilities to cope with demand and challenges of the time. KEY OBJECTIVES : 1. To establish bank image for renovation of existing branches and for new openings by utilizing our available resources. 2. To maximize profit with minimum cost 3. To promote and maintain customer service ranging from efficient cash payment mechanism to all other components. 4. To innovate new products 5. Modern banking 6. To avoid agressive banking 7. To procure 35% of national fund within next 5 years 8. To grab 35% of national total trade finance & SME loans within next 5 years 9. To grab 40% of national foreign remittance within next 5 years 10. To accelerate and achieve profit to the tune of tk. 1000 crore in the 1st year and acceleration of profit @25% in the next 5 years 11. To improve 100% of MIS and branches of the bank. 12. To faster transaction service credit and financial condition conducive to the orderly balanced and sustained economic development of Pubali Bank Limited. 13. To attain organizational highest growth. 14. To become number 1 (one) front line private commercial bank. 15. To absorb information & communication technology with all modern facilities to cope with demand and challenges of the time. 16. To maintain and upgrade the present comfortable capital adequacy, improve asset quality, continued profitability, adequate liquidity and reduction of NPL at 1.80%.

KEY STRATEGIES : 1. A Pubali model to be introduced for renovation/reconstruction of the branches. 2. Sufficient logistic support to be provided in phasedont manner to ensure good and comfortable. service to the customer. 3. By improving our services. 4. By awaring people about our products. 5.To strengthen risk management policies and techniques to safeguard Banks capital, it financial resources and profitability. 6. To modify marketing strategy in accordance with changes in the market. 7. Introduce of encouragement package for the employees. 8. To introduce Automation Strategy towards quick service. 9. To participate extensively in CSR by establishing Pubali Bank Foundation. 10. Improving International business, remittance collection & allowing foreign study loan. 11. Encouragement of participatory management & quick decision mechanism. 12. Broaden customer base. (a) Emphasize an expanding customer base to small rise & medium rise customers. (b) Pro active marketing through its 400 branches country wide. 13. Increase products & services (a) increase & develop products & services to satisfy customers needs. 14. Develop more efficient sale channel. (a) Develop & increase low cost channels. (b) streamline & improve branch operations & structures. 15. Strengthen corporate governance. (a) Focus on professional management with good governance. (b) Implement high standard risk management. 16. Improve quality & efficiency (a) Enhance service quality. (b) Enhance Capability of work force. 17. Develop & enhance IT system. (a) Implement ATM, Internet & electronic banking. (b) Implement customer relationship management. (c) Implement profitability measurement system. 18. To strengthen Internal Control. 19. To develop Marketing Strategy for getting access to new markets and to introduce new products, new services. 20. To introduce HR Development Strategy. 21. To establish central MIS. 22. To establish strong compliance culture. 23. To wider publicity in different print and electronic media. 24. To establish Brand Image. 25. To strengthen ICT Strategy. 26. To develop deposit mix with low cost of fund. 27. To maximize foreign remittance inflow. 28. To minimize Balance Sheet Risk management. 29. To bring the unbanked segment of people into banking. 30. To introduce Automation Strategy. 31. To improve foreign remittance collection.

Hasn't said to do this portion

Pubali Bank Limited

Action Plan STRATEGIC ACTION PLAN : Year Activities 1. Deposit growth to be achieved 25% 2. Advance 3. Import & export business is 25% and 10% respectively 4. Remittance 25% 5. To achieve deposit growth 20% 6. To achieve advance growth 30% 7. To achieve export growth 40% 8. To achieve import growth 45% 9. To achieve remittance growth 10%

2012

2013

1. To achieve deposit growth 25% 2. To achieve advance growth 40% 3. To achieve export growth 50% 4. To achieve import growth 55% 5. To achieve remittance growth 20%

1. To achieve deposit growth 35% 2. To achieve advance growth 50% 3. To achieve export growth 60% 4. To achieve import growth 65% 5. To achieve remittance growth 35% 2014

1. To achieve deposit growth 55% 2. To achieve advance growth 60% 3. To achieve export growth 75%

2015

4. To achieve import growth 80% 5. To achieve remittance growth 50%

2016

1. To achieve deposit growth 75% 2. To achieve advance growth 80% 3. To achieve export growth 90% 4. To achieve import growth 95% 5. To achieve remittance growth 75%

FUNCTIONAL/DIVISIONAL ACTION PLAN : Year 2012 Activities 1. Arrange to distribute divident warrant through the bank where the warrant holder maintained their account directly. 2. To mobilize human resources by 2012. 3. To impart training for improvement of efficiencies. 4. To mobilize IT software/ resources 5. To start work for simplification of documentation in respect of Lease Finance & Consumer loan. 6. To prepare list of defaulter borrowers such as 1(One) Crore & above, upto 1(One) Crore, below 50(Fifty) Lac, etc. to facilitate prompt monitoring. 7. To arrange training program for newly recruited Law Officer. 8.To start uniform suit monitoring mechanism. 9. To issue guidelines for filing & defending suits with way out to discourage legal action & to encourage settlement procedure within the sanction of Artha Rin Adalat Ain,2003. 10. To arrange providing of sufficient computers followed by computer knowing personnels. 11. To involve law officers in cross checking of security documents against sanction of loan. 12. 13. 14. 15. 16. 17. 18. 19. 20.

1. To resolve the space problem of the Division 2. To ensure mobilization of related softwares & efforts to get required space for the division. 2013 1. To materilize & achieve 50% of objectives 2. Resolvent of space crisis 3. Set up of the divisional improvement 4. LAN & running of IT based fuctions 5. To continue work for simplification of documentation in respect of all other loan portfolio. 6. To continue special training program for the law officer & suit monitoring officials. 7. To continue extensive suit monitoring / mentoring. 8. To issue guidelines for filing & defending suits with way out to discourage legal action & to encourage settlement procedure within the sanction of Artha Rin Adalat Ain,2003. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 1. To achieve 75% of objectives. 2. To implement 75% of the objectives & strategic plans. 3. To review the whole plans 4. To make changes as requires 1. to achieve 100% objectives and give on time and prompt efficient services to the stake holders. 2. To implement rest 25% of the objectives 3. To review of the total strategic plans. 4. To adopt necessary mesures & chnages

2014

2015

2016

Year 2012 2013 1024 2015 2016

Acivities

Division Name Board Division