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Declaration of Originality

I do hereby solemnly declare that the work presented that it has been carried out by me and has
not been previously submitted to any other university for an academic qualification.
The work does not abuse any existing copyright regulation. Information derived from the
published and unpublished work of others has been acknowledged in the text and references.
I further undertake to insure that the department as well as university against any loss or damage
arising from breach of the foregoing obligations.

Signature

Dewan Ridwan Ferdous
ID No. 103-12-0119
Section: HRM 11A
Major in HRM
Faculty of business
ASA University Bangladesh












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Supervisors Certificate


Dear Madam,
I am pleased to submit hereby the project of Compensation system of the Dhaka bank
Bangladesh for your kind evaluation. To prepare the project, I have given my best effort that
would enhance the project.
Thee project attempts to describe my observations, learning during the study thercourse.
I made sincere efforts to study related materials, documents, annual report and examine relevant
records for preparation of the project as comprehensive and informative as possible within the
time allowed for me. Due to various there may be some mistakes for which I beg your apology.
I would be glad if you accept the project paper and also requesting to consider limitations with a
soft view that had made due to my limitations and oblige thereby.

With the best regards,

Signature

.

Mrs.Monsura Zaman
Assistant Professor,
Faculty of Business
ASA University Bangladesh








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LETTER OF TRANSMITTAL


submission
Monsura Zaman
Assistant Professor,
Faculty of Business
ASA University Bangladesh.
Dear
Sir/ madam,
It is great pleasure to submit a project on Compensation System of the Dhaka bank
Bangladesh" as the fulfillment of the partial requirement of BBA program.
The project is done to find how compensation system of the Dhaka bank in Bangladesh. We are
working on bank we find how employee get compensation. The project has helped me to find
those employees are happy with their compensation.
We sincerely hope that you will enjoy reading the report as much as we enjoyed it writing. If
you need any further clarification interpreting our analysis please feel free to ask.

Sincerely
yours,
Dewan Ridwan Ferdous
ID No. 103-12-0119
Section: HRM 11A
Major in HRM
Faculty of business
ASA University Bangladesh


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Table of contents







Page | 5



Acknowledgment



At this point i would specially like to thank those who had made it possible for me to prepare
my project. Without their cooperation the completion of this project would have been difficult.
We are most grateful to the many people in the banking sector in Bangladesh, bank employees,
managers, and experts, who willingly cooperated in the difficult task of data gathering.



I would also like to express my thanks to the respondents - the Directors and the Managing
Committee of Dhaka Bank Ltd. Bangladesh Mirpur Branch, who has helped me by contributing
their time and providing us with information related to the topic. I appreciate their consideration,
and their consent to give the interviews.



I want to express my thanks to my Supervisor Mrs.Monsura Zama who had given me this
project and helped me in all possible ways and directed, guided me properly in completing of
my project. Her continuous support and re -enforcement has encouraged me to complete this
project, through which I gained experience on real life research situation.



Finally, All in all it was a wonderful experience to work in doing this research and preparing
this project on such an important issue.








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Executive summary

Dhaka Bank Limited is the leading Banks in the bank business and 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 follow stable compensation system, for therreason Dhaka Bank
Limited goes for long term planning, also the strategies Dhaka Bank Limited 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 is in
now Growth stages.

To estimate future demand and supply of employees Dhaka Bank Limited uses 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 employees personal information. Dhaka Bank Limited
is now growth stage Company. So, their business has expended dramatically. For that reasons
they never face the situation like employees surplus. Dhaka Bank Limited 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 the analysis we, focused on the compensation system
practiced by two private banks of Bangladesh.



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Chapter-One
Introduction

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Introduction
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. Therexpansion 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. Thernew 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 didnt 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. The 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 the
sector.

Rationale of the study
Compensation is the important part for human resource. Human resource employee must know
about pay structure or compensation system. If a human resource employee doesnt know about
pay structure or compensation then he/she can face difficulties on his/her future job. Thats why
therstudy has more interesting information about compensation systems of private commercial
banks in Bangladesh.
Objectives of the study
General objective
Develop reward structures that are equitable with consistent and fair pay relationships between
differently valued jobs.
Specific objectives
1. To understand in details how to establish pay rates to different level of employee.
2. To evaluate perfomance, quality and customers satisfaction.
3. To understand how many employees are satisfied or dissatisfied about their job.
4. To Attract new and retain talent employees.
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Limitations of the study
Every study of the type has some limitation. The topic of my study also has faced some
limitations, I have faced a few impediments & restriction while conducting the study, whish may
be termed as limitations. These as follows:
There is time limitation due to short time period of internship program.
Every company has some policy of not disclosing some data to all, so the report does not
acquire all aspects of each topic.
Insufficient data: Its very difficult to collect recent data, which is very important for
interpretation of report.




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Chapter-Two
Literature Review

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Pay of the skilled and experienced employees and the top management has a connection with
the performance of the company. In a more structured way we can say that a company is a
system in which the input is the skills of the employees which is organized and controlled by the
top management, and the output is the overall performance of the company. Managerial
activities and the compensation are linked to each other. If the relationship between the
compensation and managerial activities is weaken than it will affect the relationship of the input
and the output of the company as this (compensation and managerial activities) link is the
connecting chain between the input and the output of the company. (Harris, Helfat 1997)
This paper discusses the compensation structure of skilled workers in a hierarchical firm.
Promotion depending upon the compensating the employee is a systematic process. The
appraisal process takes a long period of time and do not serve its purpose as the workers use
their shrewdness techniques showing that they are among the skilled workers. On the other
hand, the manager can also show unacceptable behavior, sometimes by not providing the
incentives that the employee really deserves. Usually the managers appraise the the
educated workers despite of the fact that two workers are working on the some level and even
though the uneducated worker is more skillful the promotion is given to the educated and less
skillful person. The paper discusses the action plan of providing promotion plan that are efficient
and effective at the same time.(Bernhardt 1995)

Studies extended and implicated of facts that develop a theoretical framework recognize and
comprehending the executive compensation under the roof of ethics and moral values.
Importance is given to the ethical standards set in the light of liberty and equality. Study
conducted emphasizes on the need on clearly defining the rules and procedures that formulates
the compensation for the top management of the business.(Rodgers, Gago 2003)

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History of Banking



Bangladesh inherited its banking structure from the British regime and had 49 banks and other
financial institutions before the Partition of India in 1947. The Dhaka Bank established in 1806
was the first commercial bank in the Bangladesh region of British India. Bengal Bank, the first
British-Patronized modern bank established in India in 1784, had opened its two branches in
1873 in Sirajganj and Chittagong of Bangladesh region. Later in 1862, the Bengal Bank
Purchased the Dhaka Bank and opened its first branch in Dhaka in the same year by
reconstituting and merging the Dhaka Bank. Thereafter, another branch of Bengal Bank was
opened in Chandpur in 1900. A number of other branches of Bengal Bank were opened in the
region and some branches had been closed in Course of time. There were six other branches of
Bengal Bank in operation in the territory of Bangladesh until the Partition of British-India in
1947 and these branches were at Chittagong (1906), Mymensing (1922), Rangpur (1923),
Chandpur (1924), and Narayanganj (1926).

Following the emergence of Pakistan in 1947, Stat Bank of Pakistan, the Central Bank of the
country, came into being in July 1948. Later, the National bank of Pakistan, a strong commercial
bank was set up in 1949. In all, 36 scheduled commercial banks were in operation in the whole
Pakistan until 1971. Pakistanis owned most of these banks and only three of them namely,
National Bank of Pakistan, Habib Bank Ltd. and the Australasia Bank Ltd, had one branch of
each in East Pakistan in 1949. During 1950-58, there other Pakistani-owned banks, Premier
Bank Ltd., Bank of Bhowalpur Ltd. and Muslim Commercial Bank, had Opened their branch in
East Pakistan. Four Pakistan-owned banks, the United Bank Ltd., Union Bank Ltd., Standard
Bank Ltd. and the commerce Bank Ltd. Conducted banking business in the Province during
1959-1965.But all of them Had their headquarters in west Pakistan. East Pakistan had only two
banks Owned by local business groups white headquarters in Dhaka. These were the Eastern
Mercantile Bank Ltd. (Presently Pubali Bank Ltd.) and Eastern Banking Corporation Ltd.
(Presently Uttara Bank Ltd.) established in 1959 and 1965 respectively.
In the beginning of 1971, there were 1130 branches of 12 banks in operation in East Pakistan.

The foundation of independent banking system in Bangladesh was laid through the
establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127of 1972 (which
took effect on 16
th
December,1971). Through the Order, the eastern branch of the former State
Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a full-fledged office of the
central bank of Bangladesh and the entire undertaking of the State Bank of Pakistan in, and in
relation to Bangladesh has been delivered to the Bank.
Page | 13


Bangladesh Bank has been entrusted whit all of the traditional central banking functions
including the sole responsibilities of issuing currency, Keeping the reserves, formulating and
managing the monetary and credit policy, regulating the banking system, stabilizing domestic
and external monetary value, preserving the par value of Bangladesh Taka, fostering economic
growth and development and the development of the countrys market.

The Bangladesh Banks (Nationalization) Order enacted in 1972 nationalized all banks except
foreign ones. Six nationalized banks were formed through merging the existing banks of the
period.

The rate of growth and development of banking sector in the country was extremely slow until
1983 when the government allowed to establish private banks and started denationalization
process: initially, the Uttara Bank in the same year and thereafter, the Pubali Bank, and the
Rupali Bank in 1986. Growth pattern of banks during the period 1973-1983.

Economic history shows that development has started everywhere with the banking system and
its contribution towards financial development of a country is the highest in the initial stage.
Schumpeter (1933) regarded the banking system as one of the two main agents (other being
entrepreneurship) in the whole process of development. Keynes also emphasized the role of
banking services in the process of economic development of a country, while SHE was
addressing the House of Lords regarding International and Monetary System (quoted in Sharma
1985). Moreover Alexander Gerashchenko (1962) in herpopularly known Gerschenkrons
Hypothesis explained the banking system as the key role player at certain stage of the
industrialization process.


Modern banking system plays a vital role for a nations economic development. Over the last
few years the banking world has been undergoing a lot of changes due to deregulation,
technological innovations, globalization etc. These changes in the banking system also brought
revolutionary changes in a countrys economy. Present world is changing rapidly to face the
challenge of competitive free market economy. It is well recognized that there is an urgent need
for better, qualified management and better-trained staff in the dynamic global financial market.
Bangladesh is no exceptions of thertrend. Banking Sector in Bangladesh is facing challenges
from different angles though its prospect is bright in the future.
History of Private Banks in Bangladesh
Page | 14



There were no domestic private commercial banks in Bangladesh until 1982; When the Arab-
Bangladesh Bank Ltd. commenced private commercial banking in the country. Five more
commercial banks came up in 1983 and initiated a moderate growth in banking financial
institutions. Despite slow growth in number of individual lbanks, there had been a relatively
higher growth of branches of nationalized commercial banks (NCBs) during 1973-83. There
number had increased from 1512 in 1973-74 to4603 in 1982-83.

Financial sector reforms to strengthen the regulatory and supervisory framework for banks made
headway in 2006 although at a slower than expected pace. Overall health of the banking system
showed improvement since 2002 as the gross Non-performing Loans (NPL) declined from 28
percent to 14 percent while net NPL (less Provision) reduced to 8 percent from 21 percent.
Therled significant improvement in the profitability ratios. Although the Private Commercial
Banks (PCB) NPL ratio registered a record low of 6 percent, the four Nationalized Commercial
Banks (NCB) position are still weak and showed very high NPL at 25 percent. The NCBs have
large capital shortfalls with a risk-weighted capital asset ratio of just 0.5 percent (June 2006) as
against the required 9 percent. For the PCBs risk-weighted capital asset ratio stood at 10 percent.
Bangladesh Bank issued a good number of prudential guidelines during the year 2006 and the
first quarter of 2007 which among others relate to:

rationalization of prudential norms for loan classification and provisioning,

policy for rescheduling of loans,

designing and enforcing an "integrated credit risk grading manual",

credit rating of the banks, and

Revisions to the make-up of Tier-2 capital.


Besides, recent decision of the Government to corporative the remaining three NCBs along with
the initiative to sale the Rupali Bank are bound to usher in changes in the banking sector
competitiveness aspect. Bangladesh Bank has also taken up the task of implementing the Basel
II capital accord. Further, the recent enactment of the Micro-credit Regulatory Authority Act
(MRAA) for the regulation of the Micro Finance Institutions (MFI) has been a major
development in the year 2006. Since 1998 CAMEL rating of banks gradually improved and in
2006 Bangladesh Bank updated therrating model by incorporating the market risk and the new



Page | 15

Modern banks play an important part in promoting economic development of a country. Banks
provide necessary funds for executing various programs underway in the process of economic
development. They collect savings of large masses of people scattered through out the country,
which in the absence of banks would have remained idle and unproductive. These scattered
amounts are collected, pooled together and made available to commerce and industry for
meeting the requirements. Economy of Bangladesh is in the group of worlds most
underdeveloped economics. One of the reasons may be its underdeveloped banking system.
Government as well as different international organizations have also identified that
underdeveloped banking system causes some obstacles to the process of economic development.
So they have highly recommended for reforming financial sector. Since, 1990, Bangladesh
government has taken a lot of financial sector reform measurements for making financial sector
as well as banking sector more transparent formulation and implementation of these reform
activities has also been participated by different international organization like world Bank, IMF
etc.


Page | 16

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:



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.



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.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
Page | 17

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)



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


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

Page | 18

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


Foreign Commercial Banks

Citigroup

HSBC

Dhaka Bank

Commercial Bank of Ceylon

State Bank of India

National Bank of Pakistan and many more

Page | 19



Total Compensation and Benefits Package

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


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 theris confidential between the employer and the
employee. Where a job is held by one person, the individuals
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 Aids Wage

Specific amounts paid in cash for each matched job have been
taken.

Utilities / Maintenance

Page | 20

Specific amounts paid as cash allowance have been taken.


Transport Allowance
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 therand 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.

ANNUAL GUARANTEED CASH

Annual Bonus

Theris a deferred wage not linked to profitability. Actual amount
paid under therhead has been used.

Festival Bonus

Actual amount paid under therhead has been used.

Leave Fare Assistance

Actual amounts paid to the employees have been taken.


ANNUAL VARIABLE CASH


Performance Bonus

Actual amounts paid have been taken. Theris paid by
the employers in different forms based on:

Employees 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.

Page | 21

Incentive Bonus

SMC pays an incentive bonus to its all its employees. The incentive
amount is a fixed sum for each grade.

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.


MONTHLY COST OF BENEFITS


Company Leased Accommodation

Actual cost has been taken.

Household Effects (Depreciation)

Therreflects the cost of depreciation on account of hard and soft
furnishing and electrical appliances provided by the comparators.

Utilities / Maintenance

Costs under therhead 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.

Drivers Wages

Where drivers are Company employees, their actual cost has been
taken. Where Private Drivers wages are paid for, actual amounts
paid to the employees have been taken.


Page | 22

Registration / Insurance / Tax

Costs of registration, insurance, tax, etc. have been taken, at actual.

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.


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 theraction, more that any
single event, led to the dramatic expansion of employee benefits that has
Page | 23

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:


RETIREMENT

INSURANCE

PAYMENT



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



Page | 24


Dhaka Bank Limited


Background of Dhaka Bank Limited (DBL)

Bangladesh economy has been experiencing a rapid growth since the '90s.
Industrial and agricultural development, international trade, inflow of
expatriate Bangladeshi workers' remittance, local and foreign investments
in construction, communication, power, food processing and service
enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a
demand for banking products and services to support the new initiatives as
well as to channelize consumer investments in a profitable manner. A
group of highly acclaimed businessmen of the country grouped together to
responded to therneed and established Dhaka Bank Limited in the year
1995.
The Bank was incorporated as a public limited company under the
Companies Act. 1994. The Bank started its commercial operation on July
05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital
of Tk. 100 million. The paid up capital of the Bank stood at Tk
2,659,597,763 as on March 31, 2010. The total equity (capital and reserves)
of the Bank as on March 31, 2010 stood at Tk 6,036,368,754.

The Bank has 62 Branches, 3 SME Service Centers, 6 CMS Units, 2
Offshore Banking Unit across the country and a wide network of
correspondents all over the world. The Bank has plans to open more
Branches in the current fiscal year to expand the network.

The Bank offers the full range of banking and investment services for
personal and corporate customers, backed by the stateofthe-art
technology and a team of highly motivated Professionals.

As an integral part of our commitment to Excellence in Banking, Dhaka
Bank now offers the full range of real-time online banking services through
its all Branches, ATMs and Internet Banking Channels.

Dhaka Bank Ltd. is the preferred choice in banking for friendly and
personalized services, cutting edge technology, tailored solutions for
Page | 25

business needs, global reach in trade and commerce and high yield on
investments.

Our Mission
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.

Our Vision
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 endeavour is to offer you razor sharp sparkle
through accuracy, reliability, timely delivery, cutting edge technology, and
tailored solution for business needs, global reach in trade and commerce
and high yield on your investments.

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 2015.
Short-term Goal:

To increase Current Market Shares at least 0.50% by 2015.
Financial Goal:
To reduce the existing Cost of Fund by 1%, thercurrently stands at
11.06%

Values

Customer Focus

Integrity

Team Work

Respect for Individual

Quality

Responsible Citizenship




Page | 26

Motto
The Bank will be a confluence of the following three interests:
Of the Bank : Profit Maximization and Sustained Growth.
Of the Customer : Maximum Benefit and Satisfaction.
Of the Society : Maximization of Welfare

MANAGEMENT SYSTEM

Dhaka Bank Ltd is governed by a board of Director. The Board includes:

Chairman
Vice Chairman
19 Directors
20 Sponsor Shareholders
Managing Director

Current chairman of the Board of Director is Mr. Reshadur Rahman and the
Managing Director is Mr. Khondker Fazle Rashid

Board of Directors

Mr. Abdul Hai Sarker
Chairman
Mrs. Rokshana Zaman
Vice Chairperson

Mr. Mirza Abbas Uddin Ahmed
Director

Mr. Reshadur Rahman
Director

Mr. Altaf Hossain Sarker
Director

Mr. Mohammed Hanif
Director

Mr. Md. Amirullah
Director

Mr. Abdullah Al Ahsan
Director

Mr. Khondoker Monir Uddin
Page | 27

Director

Mr. Tahidul Hossain Chowdhury
Director

Mr. Jashim Uddin
Director

Mr. Khondoker Jamil Uddin
Director

Mr. Mirza Yasser Abbas
Director

Mr. Amanullah Sarker
Director

Mr. Syed Abu Naser Bukhtear Ahmed
Independent Director

Mr. Suez Islam
Independent Director


Mr. Khondker Fazle Rashid
Managing Director (Ex-Officio Director)


Executive Committee

Mr. Abdul Hai Sarker
Chairman

Mrs. Rokshana Zaman
Vice Chairperson

Mr. Mirza Abbas Uddin Ahmed
Member

Mr. Reshadur Rahman
Member

Mr. Altaf Hossain Sarker
Member

Mr. Abdullah Al Ahsan
Member

Mr. Mirza Yasser Abbas
Member

Management Committee

Page | 28

Mr. Khondker Fazle Rashid
Managing Director

Mr. Niaz Habib
Additional Managing Director

Mr. Neaz Mohammad Khan
Deputy Managing Director (RM)

Mr. Emranul Huq
Deputy Managing Director

Mr. Arham Masudul Huq
Senior Executive Vice President
Company Secretary

Mrs Shamshad Begum
Senior Executive Vice President & Principal,
Dhaka Bank Training Institute

Mr. Sirajul Hoque
Executive Vice President &
Head of Islamic Banking Division

Mr. S.A.F.A. Musabbir
Executive Vice President &
Head of Legal & Recovery

Mr. Azad Shamsi
Executive Vice President &
Head of Retail Banking Division

Mr. Asadul Azim
Executive Vice President &
Head of Credit

Mr. Fakhrul Islam
Senior Vice President &
Head of Operations

Mr. Mujib A Siddiqui
Senior Vice President &
Head of Human Resources

Mr. Darashiko Khasru
Senior Vice President &
Head - Finance & Accounts

Mr. J Q M Habibullah
Vice President
Board Secretariat & Share Division

Mr. Syed Faisal Omar
Page | 29

Vice President
& Head of Global Trade Services

Mr. A K M Ahsan Kabir
First Vice President
In-charge Internal Control & Compliance

Mr. K.M.Faisal Faruqui
Senior Assistant Vice President &
Head of Treasury

PRODUCTS

Deposit Pension Scheme (DPS)
Deposit Double (Get double within 72 months)
Special Deposit Scheme
Smart Plan
Edu-Savings Plan
Home Loan
SME
Personal Loan
Car Loan
Dual Currency Credit Card
Mobile Banking
ATM Card
Remittance
Gift Cheque
Student Service Centre
Platinum, Gold & Silver Savings Accounts

SERVICE SEGMENTS OF DBL
1. Corporate Banking
2. Retail Banking:
ATM /Debit Card
Credit Card
3. SME
4. GTS
5. Islamic Banking
6. Capital Market Service
7. Locker




Page | 30

Corporate Banking

Some Corporate Services:
Securitization of Assets
Corporate Finance and Advisory Services
Syndication of Funds
Project Finance
Syndication & Structured Finance
Trade Finance
Working Capital Finance
Retail Banking

Some Retail Services:
Deposit Double
Deposit Pension Scheme [DPS]
Salary Account
Excel Account
Bundled Savings Product
ATM Card
Personal Loan
Car Loan
Home Loan
Vacation Loan
Any Purpose Loan
Credit Card



















Page | 31

Total Compensation and Benefits Package of DBL


Objectives

Therchapter 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.


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.



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) 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).


















Page | 32





Salary structure

HYPOTHETICAL SALARY STRUCTURE OF BRAC BANK LTD.

MANAGING DIRECTOR (3, 00,000tk )


SENIOR EXECUTIVE VICE PRESIDENT (SEVP) (2, 50,000tk)

EXECUTIVE VICE PRESIDENT (EVP) (1,50000tk)


SENIOR VICE PRESIDENT (SVP) (1,20000tk)


VICE PRESIDENT (VP) (80,000-1,20000tk)


FIRST VICE PRESIDENT (FVP) (80,000-1,00000tk)

ASSISTANCE VICE PRESIDENT (AVP) (80,000-1,00000tk)

FIRST ASSISTANCE VICE PRESIDENT (FAVP) (80,000tk)


SENIOR EXECUTIVE OFFICER (70,000tk)


EXECUTIVE OFFICER (55,000-65,000tk)


SENIOR OFFICER (45,000tk)


OFFICER(40,000tk)


JUNIOR OFFICER (35,000tk)

ASSISTANCE OFFICER (30,000tk)

BANKING OFFICER (25,000tk)

TELLER (20,000tk)







Page | 33

Basic Employee Benefits for Permanent Employees


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



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.

In the event of the death of an employee while in the banks
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
Page | 34

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 thercoverage of insurance benefits compensation
will also be made as per "Workman's Compensation Act 1923"
in the case of death/disability of employees.

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

107 days + 50% of the Bonus


Meal Facilities

The following facilities are provided in each of the organisation
under Dhaka Bank

Limited:


Branches
Executives:

Meals are provided at a subsidised rate.

Head Office:
Page | 35

Executives:

No meals are provided.






Accommodation

The Bank on the basis of requirements and availability provides
accommodation to

DBLs Top Executives at their own established facilities in
Dhaka city. Outside the Dhaka city, the Bank provides expenses
of the


Utilities Allowances


Executives between grades J to M4:

No utility allowance is paid.

Executives of grades M5 and above:


Water

Telephone



Electricity

Gas

(Local &


(Limit/Mont




NWD)



Designation

(Limit/Month)

(Limit/Month)


h)

(Limit/Month)


Taka

Taka





Taka


Taka






Manager /
Sr.
2,500

At Actual

At Actual

At Actual


Manager



EVP and
At Actual

At Actual

At Actual

At Actual


above




Page | 36


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.





Medical Benefits



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
Page | 37

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




Promotion/Up-gradation


Promotion cannot be claimed as a matter of right and all promotions shall
be made on merit and no employee shall have a claim to be promoted to a
higher grade by virtue of his seniority alone. All promotions shall be made
be on the basis of Performance and different criterion laid down by the
Management from time to time.

An employee may get Accelerated promotion once within ayear
based on his/her performance.



a) Promotion in Executive Grade

An employee promoted to Executive grade from Senior Principal Officer
(SPO) may need to sit for written examination or face Viva after duly
recommended by his/her supervisor and supported by the concern Head of
the Division/Department/Unit/Branch in the Performance Appraisal

b) Promotion in Officer Grade


i. An employee may be directed to officiate in a higher post for a temporary
period for which s/he shall not be entitled to the salary of the post in which
he officiates. An employee so officiating will be reverted to his substantive
post when such temporary vacancy ceases to exist. Such posting should be
Page | 38

seen as giving an opportunity to the employee as recognition of his
competency as well as proficiency.

ii. Promotional increases will be awarded on progress to a post in a higher
salary range.


iii. In the event of an employee being promoted to a higher job grade,
he/she receives an additional increment in his/her basic salary as
promotional benefit, in addition to his/her regular annual increment in the
previous grade. Both promotional benefit and the annual increment (if any)
should be taken into account while fixing his/her salary in the new grade.

iv. In case his/her new salary falls short of the starting salary of the new job
grade, the employee will be given the differential between his/her salary
and the starting salary of the new job grade.
































Page | 39




Treatments not covered under paragraphs (i) and (ii)

Transportation Facilities and Car Purchase Scheme



Transportation Facilities for the Executives

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.







Car Purchase Scheme:

Senior Executives:

Employees in thergrade, 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 therCar
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 therscheme will not be eligible
to apply again for a period of five (5) years. The following are the approved
Page | 40

specification of the transport and benefit given to the employee:

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 manufacturers 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 employees
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 drivers salary.

Major Accidental Any vehicle under therscheme will maintain a 1
st

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.

Page | 41

hasbeen 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 Banks business as well as for
fulfilling herprivate transport needs, including the transport of children to school, etc.
Employees who have availed for therscheme 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 therscheme. However, if the employee
is asked to travel outside Dhaka on Banks business, he will be reimbursed at Tk. 6/-
per km, subject to prior permission from herdepartment 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 thersection.

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 Banks approval to participate into therscheme will be based on the nature of the
employees 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 therscheme at its absolute discretion and without any prior
Page | 42

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,

Drivers salary, and for all necessary maintenance/repair and administrative cost of the
vehicle.

Leave Entitlements


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 average wages) 14

Earned Leave (1 for every 22 days 12
actual work with wages)

Public Holidays 10 (minimum)



Page | 43

The following are the Basic Leave entitlements for the Executives at Head Office:

Types of Leave Days Per Year

Weekends (with full wages) As per Section 5.5

Casual Leave (with full wages) 15

Sick Leave (with full wages) 10

Earned Leave 15


Public Holidays
As per list of holidays

declared by the Govt.





The following are the Basic Leave entitlements for the Executives at Branches:

Types of Leave Days Per Year

Weekends (with full wages) As per Section 5.5

Casual Leave (with full wages) 15

Sick Leave (with full wages) 10

Earned Leave 15

Public Holidays 10 (minimum)



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.







Page | 44


Definitions of Basic Leave Entitlements

The following are some definitions of Basic Leaves entitlements:



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 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.


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 theris 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.



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 therwill automatically lapse on the
following 1
st
of January each year. The entitlement to Earned Leave is exclusive of
Page | 45

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.




Other Leave Options


The following sections explain some additional leave options that an employee may exercise
depending on the need.


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.


Study Leave

An Executive may be granted Study Leave, with or without pay, entirely at the banks
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 Banks operations. Study Leave can be given for up to a maximum period of two
years.


Page | 46




Hajj Leave

A Permanent Executives who intends to perform Hajj at herown 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. Therleave 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.



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
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.


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 theramount.

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
Page | 47

maintained by HR Department.



Financial Assistance Schemes


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.


Priorities for Loan against Provident Fund (PF) or Salary Advance

The following priorities will be maintained for PF loan or salary advance request

processing:
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



Loan against Provident Fund (PF) or Salary Advance Eligibility and Limits



Loan against Provident Fund

1. All Permanent employees who have contributed to atleast18 instalments in the
Page | 48

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 employees 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 employees
own contribution.

3.All Permanent employees who are members of the Contributory Provident Fund 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
(employees own contribution + Banks contribution).


4. All Permanent employees who are members of the Contributory Provident Fund
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 (employees
own contribution + Banks contribution).

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 months average gross salary is given as advance but based on the
emergency; a maximum of two months salary can be given as advance.



Repayment of Loan or Salary Advance

One months 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
Page | 49

pay back with 12 equal monthly installments.

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 installments. In such cases, the Department Head of the employee must
recommend the accounts department to do so.

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.

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

Page | 50











Chapter-Three
Methodology


Page | 51

Methodology
Term paper is conclusive as well as descriptive in nature. The purpose of the paper is to gather a
practical knowledge. To collect the primary data, the following steps have been followed to obtain
the term paper objectives:

1. Sending questionnaire to 10 entry level employees.
2. Data are collected from documents and Internet.

3. Face to face interviews with personal managers, some employees and
consumers.

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 therstudy in with multiple choice and open ended
question.
Secondary data

o annual report

o internet

o newspaper
Study Design
I have undertaken Descriptive Research Design to Study the compensation management system in
commercial banking industry at Dhaka bank. Employee were interviewed through structured
questionnaire in different outlets. Structured questionnaires have been used for therstudy in with
multiple choice and open ended question.





Page | 52



Chapter Four
Analysis
Page | 53

































Analysis:




This graph shows that company provide compensation to their employees on the basis of base pay
& Travelling/meal/housing allowance.80% of employee prefer Travelling/meal/housing allowance
& only 20% of employee prefer base pay.

0%




20%
Base Pay

0%
Commissions



80%

Travelling/meal/housin
g
allowance
Page | 54

















Analysis:




From the chart above we find that, 67% of employee prefers monetary benefits & only 33% of
employee are happy & satisfied with non monetary benefits like rewards. In this company neither
the employee are motivated nor are they satisfied with holiday package as compensation.





Page | 55

















Analysis:

From the chart given above we can clearly see that 80% of employees are satisfied with the
compensation they receives & only 20% of employees are dissatisfied with the compensation they
receives.






Page | 56





70% 30%










Analysis:




Yes, there are different types of compensation for different type of services like direct and indirect
compensation provided to the employee of the organization for increasing their motivation and
retention of employees.

Page | 57

















Analysis:



Attracting and Retaining Employees: From Bank point of view, the compensation management
aims at attracting and retaining right employees in the bank. We see 80% employees got attract to
join this bank and 20% employees dissatisfied about joining this bank or dissatisfied about their
compensation package.





Page | 58






Chapter-Five
Finding of the study

Page | 59

Finding of the study


o Most of the employees are satisfied with their job and organization fulfills
their psychological contact.
o Employee can develop their career and can gather knowledge and skills for
future.
o Organization can recognize their contribution so that they are satisfied.
o Organization hires qualified employees and for their contribution organization
provides a good compensation benefits and to develop them organization arrange
training program.
o But some contractual employees are not satisfied in specific area.
o Employees are satisfied with their job and compensation
packages.
o They like to grow their career with the organization and they are motivated to work
for the organization.
o They are satisfied with organizations personnel development process.

o They are satisfied with job so that they work with full of energy and they serve
quality service.
o They like to execute their job and they are interested to take
challenges.
o Their urge influences them to work for the organization.
o Organization provides best compensation to them.

o Organizations HR practices are effectively influence employees best output.
o Organization maintains good relationship with the employee.


Page | 60





Chapter-Six
Discussion

Page | 61


Discussion
Compensation is the remuneration received by an employee in return for his/her contribution to the
organization. It is an organized practice that involves balancing the work-employee relation by
providing monetary and non-monetary benefits to employees.
Compensation is an integral part of human resource management which helps in motivating the
employees and improving organizational effectiveness.
Compensation is a systematic approach to providing- Monetary rewards [Extrinsic rewards] Direct
( Salary , bonuses , Incentive ) , Indirect ( social security , pensions , insurance, training , sick days
, vacations , holiday , rest periods , Legal advice , Elder care ) & Nonmonetary rewards [Intrinsic
rewards] ( Job security , Status symbol , Social Rewards ) to employees in exchange for work
performed. Compensation may achieve several purposes assisting in recruitment, job performance,
and job satisfaction compensation management, also known as wage and salary administration,
remuneration management, or reward management, is concerned with designing and implementing
total compensation package.


Page | 62






Chapter-Seven
Conclusion &
Recommendation


Page | 63

Conclusion
Banking is becoming more vital for economic development of Bangladesh in mobilizing

capital and other resources. Dhaka Bank is also extending such contributions to the
advancement of the socioeconomic condition of the country. Dhaka Bank is committed to
provide quality services, maintain corporate governance & support international business as
a continuation of excellence in performance since its incorporation. They are fully
committed to conduct its business activities in economically, environmentally &
socially sustainable manner. The Bank has ensured hygienic & convenient work
environment for its employees. Dhaka Bank respects the worth & dignity of each employee.


HR programs and policies are integrated within a larger framework facilitating, in general, the

organizations mission and specifically its objectives. Dhaka bank has a good HR
policy. They believe that ensuring a right people in a right place at the right time can
produce the optimum output. So, they put and practice the great importance to ensure that
they have the right people with required skills and knowledge. They also revise the
recruitment policy thoroughly based on the demand. They have some uniqueness in their
selection process but they are very much careful and concerned for hiring employees from
outside. Also they strictly verify the references before hiring anybody because it is
given that an organizations performance is a direct to the individuals it employs, the
specific strategies used and decisions made in the staffing process will directly impact an
organizations success or lack thereof. Today Dhaka Bank is leading the Banking sector
and the employees are the leaders who are assigned through a good recruitment system
and other HR activities. Not only recruiting system therorganization encouraged employees
through compensation packages and career development and most of the employees are
satisfied with therorganization and its culture and therorganization follows discipline to
maintain employee relationship and to create better work environment for work and The
Bank's compensation policy is to provide a fair and consistent basis for motivating and
rewarding employees appropriately according to their job / rolesize, performance,
contribution, skill and competence.



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Recommendations

The bank should practice proper Dhaka bank guideline. The purpose of Human
Resource Management is to improve the productive contribution of people.
To get effective and efficient employee, the bank should arrange proper training and
development programs.
The entire HR department should be will informed regarding the employment
personal.
Employees development is needed for the own interest of the bank.
The bank should provide well direct compensation as well as direct to its staffs. The
bank should have job evaluated salary structure, which is most competitive than other
banks in the country.
To evaluate employees performance the bank should follow promotion policy
properly.
In order to get competitive advantage and to deliver quality service, top management
should try to modify the services.
Dhaka Bank Limited (DBL) needs to advertise through various Media about

Credit Cards
ATM Cards
Tele Banking &
Other Product & Services

Letter of Credit opening procedure and Margin requirement may be relaxed to the
qualified employees to keep motivating.
Periodical performance appraisal and giving recognition and rewards to the qualified
employees to keep motivating them.
Proper training needed for ensuring efficient performance of the employees.




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Chapter-Eight
Reference

















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Nationals. SHRM
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