06-05-2014, 11:51 AM
The Role of Marketing on Financial Performance in showing differences between the Traditional and Islamic Banking in the context of Bangladesh
The Role of Marketing on Financial.doc (Size: 67 KB / Downloads: 168)
ABSTRACT
Marketing is the performance of business activities that boosts up the overall flow of a company's products and services to its clients with a view to achieving the desired goal based on profit. The goal of banking business deals with a profit in market penetration by pricing, promoting and distributing of products for which there is a significant achievement of an organization. People at the helm consider MARKETING is every thing to exploit the untapped potentials of an organization.
The broad objective in perusing research is to uphold and evaluate the implication of marketing on the financial performance in showing salient differences between The Traditional and Islamic banking in the context of Bangladesh. To some extent, the study mainly focuses on Islami Bank Bangladesh Ltd (IBBL), Al-Arafa Islami Bank, EXIM Bank Ltd, Shahajalal Islami Bank Ltd and their marketing devices on financial performances have been compared with that of four other commercial banks in Bangladesh, such as National Bank Ltd. (NBL), Prime Bank Ltd. (PBL), Standard Chartered Bank (SCB) and Citi Bank N. A. (CNA).
EXECUTIVE SUMMARY
Marketing is the performance of business activities that directs the flow of a company's products and services to clients with a view to achieving the desired goal based on profit. Banking business goal deals with a profit by pricing, promoting and distributing of products for which there is a market.
The broad objective of the study is to evaluate the implication of Marketing on the financial performance of commercial banks. The study mainly focuses on Islami Bank Bangladesh Ltd. (IBBL), Export Import Bank of Bangladesh Ltd. (EXIM), Al-Arafah Islami Bank Ltd. (AAIB), Shahjalal Islami Bank Ltd. (SJBL), Prime Bank Ltd. (PBL), National Bank Ltd. (NBL), Standard Chartered Bank (SCB), and Citi Bank N.A. (CNA). Performances of sample banks have been compared from different angles.
Islami Bank Bangladesh Ltd.
Islami Bank Bangladesh Limited (IBBL) was incorporated on 13th March,1983 as a public company with limited liability under the companies Act, 1913 (Amendment, 1994). The Bank started functioning from 30th March, 1983. IBBL is the first interest-free Bank in South-East Asia. The establishment of this bank ushered in a new era in Bangladesh, the 3rd largest Muslim Country of the world. The Bank is commited to run all its activities as per Islamic Shariah. IBBL through its steady progress and continued success has, by now, earned the reputation of being one of the leading private sector banks of the country.
Export Import Bank of Bangladesh Ltd.
"Export Import Bank of Bangladesh Ltd." is widely named as "EXIM Bank" which is a completely shariah based Islamic bank. All of its activities are being operated under the norms of Islamic shariah. The bank was established as a traditional bank on the 3rd of August in the year of 1999. Though it started its operation as a traditional bank, it was converted to an Islamic bank on the 1st of July in the year of 2004. The bank has got a dramatic change through this conversion.
Citibank N A
Citibank N A is a foreign private bank in Bangladesh. The Bangladesh branch commenced its banking operations on 24 June 1995 after obtaining license from Bangladesh Bank in January 1995. Before starting full-fledged banking activity through the branch at Dhaka, it established a foreign representative office here in 1987. The present branch of the bank is the upgraded and transformed shape of the representative office.
Citi Group Inc., a merger of Citicorp Inc. and Travelers Group Inc. formed on 8 October 1998, is a bank holding company under the laws of United States of America. It is the sole shareholder of Citibank N A and its head office in New York governs the businesses of its Bangladesh branch. The bank commenced business in Bangladesh with a paid up capital of Tk.204 million and total assets of Tk.809 million.
Principle Activities
The principal activities of the Dhaka branch of Citibank NA are to provide all kinds of commercial and merchant banking services to its customers.
In addition to traditional lending activities, the bank is extensively involved in long-term financing in Bangladesh through equity participation and in other forms of term investments. It has equity participation in Shinepukur Ceramic Ltd and the country's first private television channel Ekushey (ETV).
Citibank N A provided support to large, medium and small scale industries in the form of working capital financing, medium and long-term financing, export servicing and import financing, and loans and advances to trade and commerce. Lending rates on these financing schemes varied between 8% and 16.50% during its operations in Bangladesh.