The Bank in a Sketch

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company
incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of
the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the
private sector with the objective of working as a finance company within the country and setting up joint
venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cent
were held by the sponsors and general public. In 1983 when the Government allowed banks in the private
sector, IFIC was converted into a full-fledged commercial bank. via their motto: “You’re Satisfaction First.”

Ownership Structure

Previously IFIC Bank Ltd was Government owned bank. Now the government of the Peoples Republic of
Bangladesh holds 34.34 % of shares of the bank. Leading industrialists of the country own 34% of the shares
and the rest of the 31.66 % is held by the general public. The founder of IFIC Bank Ltd was Jahurul Islam of
Islam Group of Industries. He was the first Chairman and A.S. F. Rahman was first Vice Chairman. Board
of Directors of the Bank is a unique combination of both private and Government sector experience.
Currently it consists of 13 Director. Of them eight represent the sponsors and general public and four
officials in the rank and status of Additional Secretary/Joint Secretary represent the Government.

Bank’s Mission

Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose
creative talents, innovative actions and competitive edge make our position unique in giving quality service
to all institutions and individuals that we care for.We want to be the leader among banks in Bangladesh and
make our indelible mark as an active partner in regional banking operating beyond the national boundary.

Bank’s Vision

To establish IFIC BANK LIMITED as a Role Model in the Banking Sector of Bangladesh and to meet the
needs of the Customers, provide fulfillment for the People and create Shareholder Value.

Objectives of the Bank

1. To establish welfare oriented banking systems.

2. To play a vital role in human development and employment generation to invest money in such
manner as may vary from time to time.
3. To carry on business of buying and selling currency, gold and other valuable assets.
4. To extend counseling and advisory services to the borrowers/entrepreneurs etc. in utilizing credit
facilities of the bank.
5. To earn a normal profit for meeting the operational expenses, building of reserve and expansion of
activities to cover wider geographical area.

Strategies of Bank

IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company.
Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the
activities of its branches. In case of marketing strategy they basically depend on ‘word of mouth’ as they are
already well reputed for its long-term service in the banking industry.
Capital and Reserves

IFIC bank has been consistently maintaining the ‘Capital Adequacy Ratio’, as prescribed by Bangladesh
Bank. This has been made possible by a policy of building up both capital and reserves. It started with an
Authorized and Paid up capital of Tk.100 crore and Tk.63.20 crore respectively in 1983. Authorized and
paid up capital increased to Tk.500 crore and Tk.134.66 crore respectively in 31.12.2010.

Credit Policy & Portfolio

Credit policy of the Bank works within the framework of three main objectives, namely, maintenance and
improvement of quality of assets, recovery on time and building-up of an efficient customer oriented credit
delivery system.

The portfolio includes working capital financing, project financing, import-export financing and domestic
trade financing etc. The Bank continued to extend working capital facilities to customers to ensure smooth
and uninterrupted operation of their business. At the same time, it expanded project financing portfolio to
meet the growing demands of the economy for long term financing in a depressed capital market.

IFIC Bank Limited has also started lease financing in August 2004 operating under CRM Division. Lease
financing has been proved to various concerns in different sectors especially:

 CNG conversion and refueling plant

 Capital machinery/industrial plant
 Medical equipment
 Generator, lift, escalator for commercial buildings
 Agricultural equipment like tractors/power tillers/trailers
 Automobiles like bus, luxury bus, minibus, truck, car, pickup, water transport etc.
 Components for IT education centers

As of December 31, 2008, loans amounting to Tk.786.96 million have been sanctioned under lease finance
scheme.

Domestic Branches of the Bank

At present it has 82 branches within Bangladesh. All the branches are equipped with computers in addition
to modern facilities, logistics and professionally competent manpower.

Manpower of the Bank

Total manpower stood at 1883 as on December 31, 2005. Out of them 1301 were officers and 582 were
staff. The no of female employees at the date were 205.

Management Structure

The 13 members of the Board of Directors are responsible for the strategic planning and overall policy
guidelines of the Bank.
Risk Management

In view of the global recognition towards need of an effective risk management and control systems in
financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented
the following policy guidelines on Risk Management:

• Credit Risk Management

• Asset Liability Management
• Foreign Exchange Risk Management
 • Internal Control & Compliance
• Prevention of Money Laundering

Human Resource Development & Research

Human Resources Development is focused on recruitment and in-house training for both on the job and off
the job Bank staff members through the Bank’s Academy. IFIC Bank Academy – the oldest institution in the
private sector

Products & Service

1. Current Account
2. Savings Account
3. Fixed Deposit
4. Short term Deposit
 Loans
 Auto Loan
 Consumer Loan
 Easy Lone
 Porua Loan
 Thikana Loan
 Possession Loan
 Peshajibi Loan
 Retail Loan
 Pension Savings Scheme
 Online Services

 Tele Banking (Computerized Phone Banking)

 SWIFT
 Network Electronic Mail
 Home Banking
 Future Online Expansion Plan
 Inter Branch Connectivity
 Visa Card
 Metropolitan Area Network/Head Office Computerization

 RATES OF INTEREST ON DEPOSITS

Savings Bank Deposit (SB) 5.5%  

Short Term Deposit (STD)
Less Than Tk. 1.00 crore 4.0%
Tk. 1.00 crore and above but less than Tk. 5.00 crore 4.5%  
Tk. 5.00 crore and above but less than Tk. 10.00 crore 5.0%
Above Tk. 10.00 crore 6.0%
Bank to Bank 2.5%

IFIC BANK’S MAJOR FUNCTIONAL

DEPARTMENTS & THEIR ACTIVITIES

All this products and services are implemented properly with the help of many departments. The functions
of those departments are:

 General banking Division

A wide range of products and services different type of deposits such as SB, CD, FDR etc are offered by this
department. Local private banks is biggest threat a they offer higher interest rate and better services.
General Credit Division

A wide range of products and services, such as different type of loans are offered by this department. It faces
continuous challenge from the local private banks, which mainly specializes in the consumer banking. As a
result, it has to develop new products and services to ease the competition on a continuous basis.

Finance and Accounts Division

This department performs the following activities:

o Sources of finance
o Administration, audit and back office operation.
o Salary & Provident Fund
o Taking care of taxation and financial control of the Bank.
o Decision making related to administrative activities

Recovery Division

Recovery of stuck-up loans is a major concern for the bank. This division helps general credit and project
finance divisions to recover the loans and take legal action against those creditors.

Project Finance Division

The main objective of this department is to build and maintain positive relationships with their clients.A
Relationship Manager, who maintains regular contacts with clients. Moreover, this department offers the
following facilities to its clients:

o Project Finance.
o Syndicated Loans.
o Bonds and Guarantees, etc.

Treasury Division

The Bank’s treasury specializes in offering solutions to who wish to manage interest rate and currency
exposures that result from trade, investment and financing activities of other dynamic economies of the
region.

Internal Control & Compliance

The internal control is the process affected to provide reasonable assurance for the achievement of the
objectives of the bank, the reliability of financial reporting and compliance with applicable laws, regulation
and internal policies.

Audit & Inspection Division

This division helps the bank accomplish its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control and governance processes.

Foreign Trade Division

All the overseas branches are under the control of this division, the regularly communicate with those
branches and solve problem of those branches.
Marketing Division

It basically handles all promotional campaign, branding both consumer and corporate products and services
for IFIC bank.

Law Division

In Bangladesh local banking laws regulate and rules set by the Ministry of Finance and Bangladesh Bank is
handling by this division. Law division has to take care of are:

 Any kind of legal issues

 Compliance advisory service

Human Resource Development Division

Human Resource Development is focused on recruitment and in house training for both on the job and off
the job bank staff members through the Bank’s Academy. IFIC Bank Academy- the oldest institution in the
private sector was conceived of as an in house training center to take care of the training needs of the Bank
internally

Planning, Research & Statistics Division

They study the market through which they find out which product has demand in current market, plan for
new product features and they collect statistical data for future use.

Computer & IT Division

Now all the branches were under similar automated platforms with upgraded software applications to offer
all the critical banking features. IFIC Web site has been launched for the convenience of the customers.
Milestones in the Development of IFIC Bank

1976 – Established as an Investment & Finance Company under arrangement of joint venture with the Govt. of
Bangladesh.
1980 – Commenced operation in Foreign Exchange Business in a limited scale.
1982 – Obtained permission from the Govt. to operate as a commercial Bank.
1983 – Setup its first overseas joint venture (Bank of Maldives) on the Republic of Maldives.
1984 – Commenced operation as a full-fledged commercial Bank in Bangladesh.
1985 – Set up a joint venture Exchange Company in the Sultanate of Oman.
1987 – Set up its first overseas branch in Pakistan at Karachi.
1994 – Set up its first joint venture in Nepal for banking operation.
2003 – Bank celebrated its 20th founding anniversary.
2004 – Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture Bank: NDLC-IFIC Bank
Ltd. subsequently renamed as NIB Bank Ltd.
2005 – Acquired MIEYS solution for real time on- line banking application.
2006 – Corporate branding introduced.
2007 – Visa principal and plus (Issuer and require) program participant member obtained.
2008 – Observing 25th Anniversary of Customer Satisfaction.
2009 – 64 Branches offering Real Time On-line banking faculty.
Conclusion
IFIC Bank is unique in terms of constitution, its mandate, and its objectives and modus operand. The bank also plans
to maintain its focus on managing capital and costs to maximize shareholders value.

Source: https://www.ificbank.com.bd/

https://en.wikipedia.org/wiki/IFIC_Bank