Proposal to Increase Profitability of BRAC Bank Ltd

8/16/2019 Proposal to Increase Profitability of BRAC Bank Ltd

http://slidepdf.com/reader/full/proposal-to-increase-profitability-of-brac-bank-ltd 1/22



Team Members

Fuad Sanjari 113 152 008

Rashadat Anowar Chowdhury 112 161 068

Sharif Ahamed 113 152 007

Md.Maruf Khan 113 152 005



3

Executive Summary

This report discusses about the prospective ways to increase the profitability of BRAC

Bank with its existing resources. We have tried to identify probable issues which might

cause the bank to make less profit than anticipated. For better understanding, we

have evaluated BRAC Bank performance with two other banks and find out the policy

and approaches BRAC Bank can adapt from them in order reach the level of

profitability through more efficient use of resources. Beside comparison with its peer

we have also suggested several policies which can be undertaken to affect the profit

in a positive way with thorough discussion of benefits, limitations and risks involved.

The recommendations made in this report are made on the evaluation of available

data, which might differ from the actual scenario. Nevertheless, we have tried to

proposed feasible and practical approaches to achieve the goal.



4

Letter of Transmittal

07 May 2016

Md. Salim Bhuiyan,

Professor.

School of Business and Economics

United International University.

Dhaka

Subject: Submission of Term Paper on Proposal to Increase Profitability of BRAC

Bank Ltd.

Dear Sir,

As per the course requirement, we have prepared a report regarding top managementdecision which will affect the organisation. In our report, we have discussed the way

to increase the profitability of BRAC Bank by increasing efficiency and reducing cost

of the organisation.

We are grateful to you for giving us the opportunity.

Regards,

Rashadat Anowar Chowdhury

On behalf of Team Members



5

Contents

Executive Summary ____________________________________ 3

Letter of Transmittal ____________________________________ 4

Introduction ___________________________________________ 6

Company Profile _____________________________________ 7

Project Topic and Methodology _________________________ 9

Scope ______________________________________________ 10Limitation ___________________________________________ 10

Policy and Data Analysis _______________________________ 11

Recommendations and Findings ________________________ 14

Planning and Decision Making Process _________________ 16

Risk Involve in Decision Making _______________________ 19

Conclusion ___________________________________________ 21



6

Introduction

Employees are one of the key elements of an organisation. A firm might have

objectives, infrastructure, capital, technology and structure but without employees it is

impossible for a company to function. In service based industry, which is a very stiff

competitive market. One of the key factors for a firm or an organisation to perform

better than their competitors are human resources they have. From banking sector to

telecom sector, within every service based industry almost every participate has

almost identical facilities. If we consider telecom sector as an example, every company

has a certain allowance of spectrum and network facilities as well as customer service

coverage but their overall performance depends on the product their marketing

department develop and the after sales service the customer service provide to their

customer base. Therefore, we could say that people or employees are one the most

important aspect of a firm who not only allow it to function properly but also dictates

the future of the company.

As per recommendation from our course instructor, in this report we have discussed

about application of management practice and strategy taken by top levelmanagement which will cause a significant change in the organisation. We have

focused on the management practice of BRAC Bank Ltd, which is a local Bangladeshi

bank with a centralized operation system. We believe that BRAC Bank Ltd

experiences poor employee management which causes inefficiency in overall

operation of the bank. This inefficiency also harms the profitability of the bank

To evaluate the performance of BRAC Bank Ltd. we have compared the management

practice of the organisation with City Bank Ltd. and Eastern Bank Ltd to understand

the comparative advantages these two bank experiences over BRAC Bank Ltd as they

all have practice a centralized operation system and local Bangladesh bank,

Therefore, it will help us to understand the lacking and scope to improve the operation

of BRAC Bank Ltd. by comparing the management style with two identical financial

institution.



7

Company ProfileBRAC Bank Ltd. was founded on 4 July 2001 as a private commercial bank focused

on Small and Medium Enterprises (SME). BRAC Bank was founded to reach the large

number of unbanked people which were not covered by traditional bank. The main

concept of the bank was to facilitate Small and Medium Enterprises (SME). Since then

the Bank has become a leading bank in Bangladesh.

The bank currently operates under 97 branches with a work force of 6,886 1. It has

authorized capital of BDT. 12,000 million with a paid-up capital of BDT. 7,093 million.

In total the capital is BDT. 19,718 million. Since the bank has a vast interest in SME

banking it has 458 SME unit offices as they encourage the growth small and mediumenterprises as the bank believe this certain segment has huge potential and play

important role to the overall development of the economy as well country.

The Corporate objective of the bank states ‘ building a profitable and socially

responsible financial institution focused on Market and Business with growth potential,

thereby assisting BRAC and stakeholders to build a “just, enlightened, healthy,

democratic and poverty free Bangladesh .’

BRAC Bank Ltd. has distanced and concreate mission what they want to achieve from

the very beginning of the creation as a financial institution. Their primary missions are: Sustained growth in ‘Small & Medium Enterprise” sector Continuous low-cost deposit growth with controlled growth in retail assets Corporate Assets to be funded through self-liability mobilization. Growth in assets

through syndications and investment in faster growing sectors

Continuous endeavour to increase non-funded income Keep our debt charges at 2% to maintain a steady profitable growth Achieve efficient synergies between the bank’s branches, SME unit offices and

BRAC field offices for delivery of remittance and Bank’s other products and

services

Manage various lines of business in a fully controlled environment with no

compromise on service quality

1 The number of employees including contractual engaged for the whole year or part there of who received a total yearly remuneration oftk. 36,000 or above



8

Retail Banking Wholsale Banking

Probashi Banking SME Banking

Products

Keep a diverse, far flung team fully motivated and driven towards materializing the

bank’s vision into reality

The management of the bank believe in the 3P philosophy of People , Planet and Profit .They prefer long term CSR programs that have sustainable impact on their

surroundings. The bank is making outstanding progress in achieving the primary goal

of financing inclusion. BRAC Bank Ltd. has been able to further reinforce this not only

in Bangladesh but globally as well. To expand the unexplored SME Market, it is

continuously improving efficiency standards and launching new products. Being the

pioneer in Bangladesh in propelling the SME sector, it is continuing to make every

effort to take banking services to a larger number of Small and Medium Enterprises.Following its footsteps, other banks now consider SME sector as a bankable sector.

All banks are now coming forward to finance in SME sectors.

As part of BRAC Banks Ltd countrywide expansion, they have opened 9 Branches

and that takes their network to 97 and their SME Unit Offices stands 458. They are

now well positioned to cover every corner of the country with easy access to banking

services. Their network is also largely boosted by bKash. With more than 10 million

customers and 90,000 agents, bKash now has presence in every village of the country.

Currently the bank offers a wide range of produce and services. Primarily BRAC Banks

Ltd. produces are divided into four (4) categories:



9

Five subsidiaries of BRAC Bank Ltd including a renowned and revolutionized mobile

banking service, bKash. The bank has interest in capital market, foreign exchange

and refinance service as well as IT sector through its subsidiaries.

BRAC EPL Investments Limited BRAC EPL Stock Brokerage Limited bKash Limited BRAC SAAJAN Exchange Limited

BRAC IT Services Limited

Project Topic and Methodology

The project primarily focuses on the labour force of BRAC Bank Ltd. As we havementioned earlier that BRAC Bank has an extended SME division and network which

allows it to employee large number of field representative as well as set up various

SME unit office in difference part of country. Currently BRAC Bank Ltd. has a work

force of 6,866.

The hypothesis of our project is BRAC Bank Ltd. is currently overemployed and this

has caused the firm to make less profit and poor management of employee has caused

the firm operationally inefficient and low morale among its work force. We have

suggested several inclusion and changes in management policies to boost the

productivity and moral of work force to enable the bank to work at its full potential. In

other word, we have mentioned ways to improve the profitability of the organisation by

reshuffling and decreasing the labour force to a certain margin of which the latter step

should only be taken as a last resort.

In order to compare BRAC Bank performance with its peer we have selected two local

commercial bank i.e. City Bank Ltd. and Eastern Bank Ltd due to having a similar

operational practice as well as management practice for easier comparison and

endeavour to find out what BRAC Bank can adapt or implement other two banks in

order to use its work force more efficiently and effectively which will not only save its

operational time but also increase the profit of the organisation.



10

Based on secondary data collected from respective companies’ financial report we

have tried to conclude how resourcefully each and every organisation is using its work

force as well as their remuneration and other benefits provided to them for better

performance.

ScopeThe report can be used to identify the underlying problem the bank is currently facing

but the management is yet to realize due to lack of communication between different

tier of hierarchy, improper allocation of individuals in different department and

employee outlook regarding their working environment. Since, this report focuses on

the profitability, efficiency and moral of labour force of the organisation, the bank canalso find out important feedback and the lacks they currently have which fails them to

utilize the skill of their employee to the fullest. In addition to that it can also help the

bank to compare its efficiency to its peer as well as provide a benchmark for the overall

banking industry.

LimitationThe limitations of this report are chiefly concerned with the factor of time and the lack

of availability of relevant research findings pertaining to the Banking sector. It can fairly

be said that for an extensive secondary research, as of the kind of this report, a fairly

longer time allowing greater analysis of secondary resources is very much essential.

Nonetheless, this report has been attempted with much viability to overcome this

limitation.



11

Policy and Data Analysis

In order to measure the differences between BRAC Bank Ltd. and other two banks

performance we have used the financial performance data from annual report for the

year of 2014 of the banks as well as the employee benefits provided by the bank.

Annual report of a publicly traded company provides valuable information of an

organisation from top to bottom. It not only relates to company’s financial performance

but also how it operates its day to day task and what value and mission it conveys to

the community and its stakeholder. Due to unavailability, we have used the data of

year 2014 as organisation we have analysed for this project is yet to disclose their

latest annual report.

Since, we are solely focused on employee performance of three banks, we have used

profit and loss statement for year of 2014 of each bank. Profit and loss statement

mentions company’s net revenue, operating revenue, operating expense, net profit

and other important accounts which reflects company’s efficiency, earning to expense

ratio and other figures.

2

Bangladeshi Taka

BRAC Bank Ltd. City Bank Ltd. Eastern Bank Ltd.Net interest income 8,68,23,13,381 5,05,83,18,797 4,08,79,13,766Investment income 2,48,62,17,457 2,85,96,28,617 3,30,78,63,405Commission, exchange and

brokerage3,45,45,02,102 1,96,88,13,803 2,77,04,56,552

Other operating income 1,54,32,82,208 87,14,13,619 15,02,04,334Total operating income 16,16,63,15,148 10,75,81,74,836 10,31,64,38,057Salaries and allowances 3,47,75,01,367 2,93,68,27,991 2,42,55,24,161Total operating expense 8,88,36,51,507 5,89,19,53,237 4,45,61,00,047Operating profit 7,28,26,63,641 4,86,62,21,599 5,86,03,38,010Profit After Tax 2,10,15,67,513 1,70,61,11,413 2,13,78,71,104Number of employee 6886 2535 1559Number of branch 97 100 76

The following table shows the certain figures in BDT 2 of each bank which we have

used for analysis of bank performance.



12

The three bank mentioned above practices a similar organisational structure as they

are operated centrally. Centralized organisations are operated mostly from head office

and branches have poor authority. For example, centralized banking, L.C opening,

account opening, corporate loans are fully controlled by head office. In contrary,

decentralized banking, branches are mostly liable and responsible for the above

issues.

According to financial report BRAC Bank has better net operating income compared

to its peers but net profit is almost identical with EBL. Beside that the number of

employee of City Bank and EBL combined does not match the vaster labour force of

BRAC Bank. BRAC Bank has a labour force of more than six (6) thousand and

compared to their labour force the revenue is less than anticipated if we focused on

other two banks. Thus, we can conclude that BRAC Bank currently is overemployed

and inefficient.

The overemployment and inefficiency in BRAC Bank can be elaborated by interpreting

few metrics which discuss about the banks efficiency ratios. The following tables

shows three ratios which exhibits various cause of BRAC Banks poor employee

management and excess employment.

Operating profit per employee (OPE) is a ratio which interprets a company’s operatingprofit against each employee. The greater the number the higher its efficiency per

employee the company has achieved. According to our calculation we can see that

BRAC Bank has the lowest OPE among three banks. This is due to BRAC Bank huge

work force. The primary factor behind lower OPM is caused by lack of competition or

low morale among labour force. EBL has almost 4 times less work force than BRAC

Bank but it is making more profit than BRAC Bank. On the other hand, City bank might

have had a lower profit compared to BRAC Bank but compared to their labour force,

they still have better efficiency ratio compared to BRAC Bank.

Efficiency Ratio based on 2014 Annual Report in BDTBRAC Bank Ltd. City Bank Ltd. Eastern Bank Ltd.

Operating profit per employee 10,57,604.36 19,19,614.04 37,59,036.57Net revenue per Employee 12,60,864.56 19,95,392.03 26,22,138.40Employee cost to operating expense 39% 50% 54%



13

Net revenue per employee is a ratio which exhibits bank net earnings per employee.

We know the primary source of bank revenue is interest income and bank has to pay

interest to its depositor as well therefore, the actual revenue of a bank is measured as

net interest revenue which is a result of banks earned interest deduced by paidinterest. Similar to operating profit per employee, BRAC Bank has the lowest net

revenue per employee because they have higher employee compared to other banks

though their net revenue is highest among three bank. The higher this ratio is, the

better an organisations performance is in terms of efficiency.

Employee cost to operating expense is another ratio which exhibits the portion of

employee cost allocated to operating expense of an organisation. Generally,employee cost is one of the primary cost for any organisation and the norm is that at

least more than 50% of an organisation should be employee cost as if employees are

paid better than they are likely to perform well. In other words, if employees are taken

care by their employer then in return they will take care the organisation. In case of

BRAC Bank, employee cost is 40% of total operating cost though City Bank and EBL

have a ratio of 50% and 54% respectively. This ratio states that BRAC Bank is paying

their employee less compared to their peer. But if they increase the salaries

substantially, the organisation will face a fall in profit as well as they have less profit

compared to EBL. Though EBL pays 54% of their operating expense as salaries.

BRAC Bank follows guidelines provided by Bangladesh Bank (BB) for employee

remuneration. Almost, all bank follows this identical guideline and they have to abide

this word by word to avoid any action against them. Therefore, the re are no changes

required to change in terms of employee benefit provided by the bank but it is essential

for the bank to utilize its resource more actively so it can earn better profit with existing

resource or few changes in its overall operation.



14

Recommendations and Findings

Based on the issues we have identified above by analyzing and comparing BRAC

Bank performance with its peer, we can conclude that BRAC Bank requires certain

changes in their management practice and policies to increase the profitability with

their existing resources as our analysis suggest that currently the organization is

inefficient and there are rooms to improve this situation.

In following portion, we have suggested the probably steps or initiative the

management of BRAC Bank can take in order to increase their profitability by

significant margin.

1. Employment at mid-level management needs to be cut down: This refers that

mid-level employee at BRAC Bank are way too much in terms of head count,

then that is required. Here the mid-level starts from the position of Assistant

Vice President (AVP). When it comes to AVP, the Bank has to bear additional

forty thousand per month as car allowance per head apart from other facilities.

Currently there are a number of AVPs and above positions holding in eachdepartment those are increasing the expenditure of the department as well as

the Bank. Here it is also seen that the task which can be done with an officer

grade staff, is currently done by AVPs and above positions.

2. Reshuffle low level employee: Employees in BRAC Bank are usually very loyal

to the company. This is something known in the Banking industry of our country.

Here in spite of deprivation in terms of monetary benefit as well and otherbenefits from the management level, employees are reluctant to switch their

jobs. But this cannot happen for a much longer time. It is seen that at some

point of time, the recruitment policy and selection process were not up the

standard, as a result, the resources employed in the organization are mostly

not capable to compete in the industry. This is why their willingness and

capability to switch job and sustain somewhere else are always not easy. To

resolve this issue, the new management wants to reshuffle the position ordepartments of some existing employee.



15

3. Training session for the mid-level employee: Training is always a good move to

motivate and skill development for employees. Mid-level employees need

adequate training for their respective job descriptions so that they can train the

lower level employee. Training the lower level employees by the mid-levelemployees will also reduce the cost of the organization. If trainings are

conducted by the external trainers, then they would charge higher than that of

the internal arrangement.

4. Monitoring on branch expenses such as misuse of utility bill: Monitoring the

overhead expenses of the branches are very much essential. For example,

electricity bills need to be monitored very closely. When the branches close ithas to make sure that all the lights, fans and air conditions are switched off on

time or no one is bothered to look at it. The head of each branches should be

aware of these facts that there cannot be wastage of utility bills. These should

be strictly monitored in terms of looking at the profitability of the organization. If

possible, a centrally monitoring cell can be placed for the said issue.

5. Monitoring inappropriate usage of official transport: Sometimes it is seen that

usage of official pool car is not always appropriate. When pool cars are not

available, the transport officials try to provide rented vehicles when it is asked

for. But as a matter of fact, the cost of rented vehicles per day is not always

worth the money that the Bank generates profit from the said cost.

6. Laying off excess employment in particular departments: It seems that

supporting staffs or back office staffs are more than adequate in each

department. A task of four people is done by around ten people. This sort of

problem needs to sort and each and every employee should be designated with

specific job role. For example, excess number of employee at the back office

can be transferred to the business department from where the Bank generates

profit. By doing this, the Bank can find out the skill level of the employees and

can easily sort who can sustain in the organization and is better for the

organization.



16

7. Lack of motivation in lower tier hierarchy due to low payment: One of the very

important cause that we work for is the monetary benefit to live our life and run

our family. Since its inception BRAC Bank has not focused on the pay scale of

the lower level employee. Lower level employees have always been deprivedhere when it comes in terms of salary, annual bonus and other staff benefits.

BRAC Bank ’s payment scale is the low est in the Banking industry. Employee

become very demotivated and demoralized with this major factor. You cannot

expect positive output from your employee if you do not give them proper salary

or other benefits. This is a very major issue that needs to resolve by the

management. In reference to point number 2, here the management needs to

reshuffle its employee and place them in appropriate positions.

8. Employing of efficient managers: Here in order to grow more in terms of

profitability, BRAC Bank needs to hire some managers from the industry who

are team players but not individual player. The Bank now needs managers who

can work with people, responsible, can think analytically etc.

The recommended steps mentioned above can be taken by BRAC Bank which willsurely have positive impact on the income statement of the bank. But, the steps should

be taken in a planned manner without hampering the regular operation as proposed

initiatives should not hamper the current status and financial situation of the bank.

In order to increase the profitability, the bank must have short-term plans and long -

term plans. Since, increasing profitability and changing an organisation management

practice are not easy tasks. Therefore, the bank must lay out plan with several

segment to achieve their required profit within in a fixed time period.

Planning and Decision Making ProcessShort-term Planning

To increase the profitability, first of all the bank need to minimize its cost. Monitoring

expenses are the best possible way to reduce the cost. The bank can cut or reduce

their excess expenses for example excess use of utilities and transportation

facilities. Monitoring cost not only benefit the bank but the society as well. Since,



17

tracking expenses are considerably easy, if the organisation targets to reduces its

energy consumption to a certain percent it will have positive impact on its

profitability and it can be done within a short-span of time. Thus, if the organisation

targets to reduce its utility expense by even 10-20%, it will be commendable steptowards its profit goal.

In addition, laying off and reshuffling among work force can be divided into two

categories as well. Meanwhile, we are recommending laying-off as a last resort to

reduce cost. It is not only costly but also most complicated task to undertake.

Reshuffling can be done within a short period of time based on several factors of

employee and department.

Training can also help staff to improve their skills. On this particular matter, we are

focusing on training of mid-level management as training on employee

management will help them to know how to motivate their subordinates and bring

the best of them. Since, training require time and effort on individual level but

collaboration among staff and learning from mistakes will eventually benefit the

organisation with positive return of training.

Long-term Planning

In regards of long-term planning, there will be several chronological short-term step

followed by long-term step to be taken by the bank. All the short-term plan

mentioned above are the segment of long-term plan in order to increase the

profitability of the bank.

Subsequently, BRAC Bank has over-employment in certain department and it hasbeen seen that 10 people are employed for completing tasks of 4 people so we

can say that the bank has at least more than double employee in certain

department.

Since, lay off is only recommended as last option, through reshuffling over-

employed department can reduce their staffs without anyone losing their jobs. This

will allow transferred employees better understanding of the bank as well as they



18

can test their skill with a chance to explore new opportunities which might have

positive impact on their career.

If individual fails to deliver or meet management expectation the organization can

exercise programmed decision making to evaluate their performance and take

decision as required. Programmed decision is used for routine matters of an

organization. In other words, programmed decisions are used for those activities of

organization which are recurring in nature. Here, the manager makes a decision once

and uses that decision again and again. The recommended steps can be taken by the

management to identify the potential employee to let go.

1. Identify least capable employees by analysing the past one-year performances

and their credential. After sorting out the management may give ultimate to

them in order to their performance and failure will result termination of their

service.

2. Promoting outstanding performers which will motivate others to do well.

3. Reshuffling of employee can be done based on the preferred department and

performance as well as experience and credential which can benefit the

department in long run. This step will not only induce fresh motivation and

environment among the staffs but also help respective departments to increase

inter-department relationship for the betterment of the organization.

In addition to that, we are also recommending that there has to be a change in

employment recruitment procedure of BRAC Bank. Below we have discussed how

behavioural analysis can help to identify better and efficient employee

Behaviour refers those activities of an organism /person that can be observed by

others in a given situation. In other words, what a person does in a given situation

which can be seen by others is known as his/her behaviour. Behaviour depends on

two factors or two elements:

a) Nature of the individual

b) Nature of the situation



19

In case of BRAC Bank Limited employee selection the following behaviour elements

may be analysed: family background, education, training, Knowledge, experience,

belief, culture. Among all these the man emphasis in the selection process should beEducation, Training, and Knowledge Experience. Education, knowledge &

experience will provide the support in selection & training will provide the support in

improvement of performance.

Behaviour depends on the nature of the individual. Nature of the individual depends

on many factors. We find different people behave differently because of the difference

in situation. In the case of BRAC Bank Limited we made a thorough analysis on

different branches. Our main target was the cash officer of different branches. In our

study we found that in the same situation cash officers of different branches behaved

differently. This thing happened because of various reasons. The main issue that our

analysis found that it was the dissatisfaction level of the employee that made him

behave unusually. This may have happened because that particular employee was

not satisfied with the work that he/she was performing, or he/she may have expected

a much better environment to work in or he/she may have felt that the education level

that he/she carries was more for this job. Our analysis rarely found any problemregarding family background, ethical issues, or family problems.

This is where BRAC Bank HRD needs to have a look at, and that is the proper

selection of employees on the proper positions.

Risk Involve in Decision Making

BRAC Bank Limited employee downsizing or reshuffling the decision making

under condition of risk may be best suited because the risk of the manager is

medium. The manager has to make decisions under conditions of risk when the

following conditions are fulfilled-

1. Information available to make the decision is sufficient

2. The result of the decision may be said with a fair amount of certainty



20

Downsizing or reshuffling the existing employees will require huge amount of

employee performance information. The involvement of managers will be very high as

they need to report about all the employees last one year or more work performance.

After collection of information they will require to report it to the head of branches &the heads will forward the reports to the top management for decision making. The

information of every employee is available & the decision will be purely made on the

performance reports. But reshuffling will require a lot of strategic decision rather than

only reports.



21

Conclusion

BRAC Bank has been performing very well since its inception in the banking industry

of Bangladesh. It has not only introduced new types of produce such as bKash, which

has revolutionized the mobile banking system of Bangladesh but also made monetary

transaction safe and easy for commercial purpose. Beside the introduction of mobile

banking services and other product by leveraging the NGO experience and backbone

of BRAC. BRAC Bank was able to take the SME banking to the next level and helped

to boost small and medium entrepreneur to achieve their goal which was almost

impossible before the introduction of SME loan schemes. BRAC Bank has set a

benchmark and lesson to other commercial bank, who have now followed the footstep

of BRAC Bank and provide dedicated services for SME as separate product.

Nonetheless, over the period of time BRAC Bank has to increase its staff as it has

expanded its operation throughout the country to let people access the benefit of SME

banking without any difficulty. BRAC Bank has almost 249 SME unit, which only

provide service regarding SME scheme. But, if we compare several ratios and policies

based on annual report and internal assessment of BRAC Bank employee, we areable to understand that BRAC Bank has huge potential to increase its profitability just

by doing few changes in its operation, human resource management and adaption of

expenses.

BRAC Bank has lower employee cost though it has a huge work force compared to its

peer. Beside that the bank has less profit but due to excess expenses with low

efficiency the bank is doing much profit as anticipated. Given the network and labour

force of BRAC Bank, they can increase their profitability substantially.

Through this report, we have suggested several ways to increase the profitability of

the Bank without tinkering the current operation vastly. Since, the bank employee a

greater number of individual and in some department it seems that the bank has huge

number of employee, it will be best for the bank to provide better training to supervisors

in order to allow them to better understand their sub-ordinate. So, they can motivate

them and get the best out of them. Beside training, we have suggested reshuffling

among the labour force and departments in order to increase inter-department



collaboration and increase versatility within staffs. This will help staffs to learn more

about the organisation and they will be having better conceptual knowledge about the

organisation.

We have mentioned earlier that laying off employee will only consider as last resort;

this decision will be made based on the different criteria which will vary from

department to department. It is a time consuming and lengthy process with certainty

uncertainty involve. we have proposed to outline a long-term plan segmented by

several short-term plan to get a better result with less negative consequences. In this

way, the bank can evaluate their plan and make required changes though the process.

In addition, every planning has several risk involve and in our analysis, we have

identified the risk to undertake such plan is medium and due to segmented approach

towards long-term planning, we have eliminated or reduce the risk as well. Though

downsizing might be elected as a way to reduce the cost, new recruitment will not be

immobilized but recruitment process will have slight change which will focus on how

adaptive and multi-tasker a person is.

The limitation might confine the credibility of the recommendation of the report since,

the data used to analyze the situation of BRAC Bank Ltd. Dated back to 2014 andduring this period, the bank might have identified the problem and undertaken required

measure to eliminate the problem. Nonetheless, we have tried to suggest the most

feasible and practical ways to help the bank reach new level in banking industry.

The End

Documents

Proposal to Increase Profitability of BRAC Bank Ltd