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A REPORT ON
BUSINESS COMMUNICATION PROCESS
OF
BASIC BANK LIMITED

MGT 242: Business Communication

Prepared for

Afrins Farid

Faculty, School of Business

Prepared by

Syed Wahidur Rahman 10310423
Sabiqun Nahar 10310432
Nasrin Akter 08410021 Parvez Ahmed 10310371
MD. Mahtab Hossain 10310388 Kazi Arif Hossen 10310439

University of Information Technology & Sciences (UITS)
April 09th, 2011

Acknowledgement:
I would like to give thanks to those people who helped us to prepare this report and we are very much grateful to them for their cordial assistance, helpful co-operation and essential suggestion.
At first we would like to express deep gratitude to our honorable course instructor Afrins Farid , Faculty, School of Business, University of Information Technology & Sciences (UITS), for her sincere guideline and valuable remarks, thoughtful comments and essential suggestions. She inspired us and gave us encouragement to complete this report.
We would also like to express our gratitude to the all managers and employees of the organization, where we have gone to collect information for preparing my report. We are really grateful to them.
All of the persons stated above played a great role by helping us to make this report a successful one. So again, a special thanks to all of them.

IV

Letter of Transmittal:

April 09th, 2011

Afrins Farid
Faculty, School of Business
University of Information Technology & Sciences (UITS).

Dear Madam,

Here is a report on “BASIC BANK LIMITED”, which you asked us to prepare on the January 31st, 2011. To know about the communication process we have gone to the Gulshan branch of the bank, which we observed as relevant to the topic of the report. The information provided by you in your class lectures was also helpful to us.
In this report, we have tried our best to know about the different communication process played by the bank. Also we have collected information about the background and recent activities of the bank.

Therefore, I hope that our report will fulfill the need to understand the basic communication process that BASIC bank performs. We assure you that the report is totally self- explanatory.

We will be available anytime if you face any difficulty to translate any meaning of this report. Sincerely yours,

1. ………………. 4. …………………
Syed Wahidur Rahman Nasrin Akter
ID: 10310423 ID: 08410021

2. ………………. 5. …………………
Sabiqun Nahar Parvez Ahmed
ID: 10310432 ID: 10310371

3. ………………. 6. …………………
MD. Mahtab Hossain Kazi Arif Hossen
ID: 10310388 ID: 10310439 III

TABLE OF CONTENTS:

|Content |Page |

|A. Introduction | 1-6 |
|Origin of the report |2 |
| 2. Purpose of the report |2 |
| 3. Scope of the report |3 |
| 4. Limitations |3 |
| 4.1. Branch problem |3 |
| 4.2. Shortage of time |3 |
| 4.3. Other problem |3 |
| 5. Background |4 |
|6.Methodology |5 |
|7. Method of collecting data |5 |
|8. Report preview |6 |
|B. Report body |7-17 |
|1.Basic bank and its communication process |7-17 |
|2.Internal communication |9-13 |
|2.1. Formal communication |10-11 |
|2.1.a. Vertical communication |11 |
|2.1.b. Horizontal communication |11 |
|2.2. Informal communication |12 |
|3.Grapevine |13 |
|4. External communication |14-16 |
|4.1. Clients/ Accounts holder |14 |
|4.2.Correspondent banks |14-15 |
|4.3. NGO |16 |
|4.4. Regulatory Authority |16 |
|4.5. Share holder |16 |
|4.6. Financial institution |16 |
|5. Barrier |17 |
|C. Report Ending |18-19 |
|1. Conclusion |18 |
|Content |Page |
|2. Recommendation |19 |
|D. Appended parts |20- |
|1.Appendix |20-23 |
|1.1. Visiting Card |20 |
|1.2. Account opening form |21-22 |
|1.3. Business Letter |23 |
|2.Bibliography |24 |
| | |
|E. Figures | |
|1.Chain of command |8 |
|2. Internal communication forms |9 |
| | |

Executive Summary: the Report
BASIC Bank Limited started its business in 1991 and their goal was to reach banking system more closely to the general people. And this made this bank up to this time. Now BASIC Bank Limited is an improved and modernized bank where the banking system has been easier than the continuing banking system.
Basically BASIC Bank Limited performs major four types of functions – Term Loans to Industries, Full-fledged commercial banking service, Technical Support to Small Scale Industries (SSIs), and Micro-credit to urban poor.

In this report we have discussed in detail about the communication process of BASIC Bank Limited. For this purpose we contacted with Muhammad Kabir Hossain, Assistant Manager, BASIC Bank Limited and we used our text books as references.

1 A. Introduction: 1. Origin of the report:
Afrins Farid , Faculty, School of Business, University of Information Technology & Sciences (UITS), the honorable course instructors of ‘Business Communication’, assigned us to prepare a report on January 31st , 2011 about the “Communication Process of BASIC BANK LIMITED”. The date of submission of this report is April 09th, 2011.
PURPOSE OF THE REPORT:II
2. Purpose of the report:
We are very much passionate to be an executive of the coming days. So, we have to gather more experience beside our study. We do not want to concentrate our lessons only in classroom but to implement it in my practical life that will help me in my professional life. The purposes of preparing of this report are-

-To relate my theoretical report writing knowledge with the practical working experience. -To know about the functions played by the bank.

-To know about the Communication Process of the bank.

-To gather experience of working as a group.

-To get good grades in particular course.

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3. Scope of the report:
We have collected data from the Gulshan branch of BASIC Bank in Dhaka ; we have mainly tried to cover all the information needed to know about the communication process followed by the bank as well as the various functions played by the bank. We are benefited by working with such an organization which will help us not only to get good grades but also to gather practical experience . The entire interviews are taken from the Managers or various upper level officers of the bank.TIONS
OF THE REPORT
4. Limitations of the report:
Though we are lucky to get the chance to prepare this report but unfortunately we have faced some difficulties. We tried to overcome the difficulties and gave our best effort. When preparing this report, some difficulties we faced a. Branch problem: Some employees of the bank told us that they are not authorized to tell anything about the matter. They also told that only the head office can provide information about this. So it becomes a problem working within branch office. The managers are also very busy, so it was hard to bring their concentration on the matter. b. Shortage of time: This extensive type of report needs too much time to prepare it. But we had to prepare this report within a very short span of time; moreover we had other term paper submission to do. c. Other problem: Some other problems like,
-Traffic jam delayed us in road. -Load shedding caused trouble to work flawlessly. -Non sufficient information in website made the job more difficult. -Being student bearing the related expenditures were tough. 3
5. Background:
BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January, 1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a private bank as before.
BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loan able funds shall be invested in small and cottage industries sector.

4

6. Methodology:

-Sources of collecting data:

The report is based on data & information, which have been collected from various sources. They are stated below: a) Primary source
- Interview
- Search through the internet
b) Secondary sources
- Various books related with Business Communication. - Various website.
-Method of collecting data:
7. Method of collecting data:
To do this report first we have gone to the Gulshan branch of the bank. We have also collected information about the banks past history on the internet. Then we have related all those information with the currently studying course “Business Communication.”

5
8. Report preview:

6 B. Report Body:

BASIC Bank and its business communication process:

Communication is a process of interrelated elements working together to achieve a desired outcome or goal. Since communication is a process this means it is dynamic ever changing and unending.
Business communication is the communications which happen in business.

BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) is a business organization which is a bank in criteria but owned by government of Bangladesh. It is a state owned scheduled bank which works for the progress of Small Scale Industries. Each branch has four departments of Basic Bank such as 1. Foreign exchange 2. General Banking 3. Credit division 4. Desk pass.

Organizational goals:

-To employ funds for profitable purposes in various fields with special emphasis on small scale industries.
-To undertake project promotion on identify profitable areas of investment.
-To search for newer avenues for investment and develop new products to suit such needs.
-To establish linkage with other institutions which are engaged in financing micro-enterprises.
-To cooperate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sector.

Chain of Command: BASIC Bank Limited

C=Chairman, BD=Board of Director, MD=Managing Director, GM=General Manager, AGM=Assistant General Manager, M=Manager, DM=Departmental manager, AM=Assistant Manager, OFFICER, AO=Assistant Officer. 7
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According to these departments communication happens in two ways: 1. Internal Communication 2. External Communication In below the whole communication process is described:

1. Internal Communication: Communication occurring within the same organizational structure is called internal communication. The internal communications of BASIC bank happen between the branches and within the branch.

[pic] Figure: Flow of Internal Communication
Internal Communication are of two types: a. Formal Communication b. Informal Communication 9
a. Formal Communication: The formal communication in Basic Bank occurs within the organizational framework to maintain the formal rules of communication. The formal communication are given below which is followed by Basic Bank.
** Memos: A memo provides a format for a concise message. It reflects information, makes request and provides responses and presents informal reports of the Basic Bank Limited.
** Interview: sometimes the management of Basic Bank resort to an interview or conversation to exchange their views on different issues.
** Telephone: The size, scope and nature of Basic Bank affect the use of telephone for formal communication.
** Report: The Basic Bank creates a report based on investigation is sent to the authority concerned.
** Notice board: Such a board is used by head office of Basic Bank to send messages to the branches. It must be kept up-to-date and attractive and should be placed where employees make assembly.
** Face to face discussion: Executive officers and employees of Basic Bank many times call for a discussion and interchange views regarding the current problems. This discussion may be regular or irregular and formal or informal depending on the situation.

** Questionnaire and survey: Information about employee attitude, moral and relationship between management and subordinates etc. may be collected by the Basic Bank through the use of questionnaire and surveys.

** Fax: When departments, branches of Basic Bank are scattered in different places then fax is used for communication.

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** Internet: To create effective and fast communication Basic Bank uses internet.

There are two parts of formal communication
1. Vertical communication
2. Horizontal communication

a.1: Vertical communication:

The vertical communication of BASIC bank exists between supervisors to subordinates.
There are two parts of vertical communication…
-Upward communication
-Downward communication

When the vertical communication of BASIC bank flows from downward to upward (from subordinate to superior ) it is called upward communication.

When the vertical communication of BASIC bank flows from upward to downward (from superior to subordinate) it is called downward communication.

a.2: Horizontal communication: Information exchange between departments or functional units, as means of coordinating their activities.
BASIC Bank maintains horizontal communications between its employees.

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2. Informal Communication: The informal communication in Basic Bank occurs within the organizational framework to maintain the informal rules of communication. The informal communication are given below which is followed by Basic Bank :

Complaint and suggestion boxes: At some convenient places in the branch complaint and suggestion boxes are kept so that employees can drop their complaint and suggestions, if any, into the box.
Participation in praying: The authority of BASIC bank give opportunity to the officers and employee for praying. Where they get the chance to informal communication.
Informal gathering: On different occasion BASIC bank arranges `informal gathering or tea meeting where employees are encouraged to talk freely about their day to day concerns.
Idea hunt: The BASIC bank limited such even is organized to allow employee participation for creative ideas for betterment of services offered to clients.

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Grapevine:

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It is an informal channel of communication. In other word when communication uses in informal or unofficial network, it is termed as Grapevine.
BASIC Bank conducts this communication process in internal communication. If any employee needs to deliver or receive any information or message they directly conduct with the particular employee.

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External Communication:
Communication occurring within the different organizational structure is called external communication. The external communications of BASIC bank happen between the clients, suppliers, investor, competitor etc.
In below the external communication perform by BASIC bank are given:

Clients/Account Holder: BASIC bank generally deals with Small- Scale Enterprises as well as full fledge commercial banking service including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade. For this purpose they 1. Provide accounts opening for different saving scheme. 2. Loan to develop small industries of the country.
Correspondent Banks: BASIC Bank has correspondence with several banks through which they communicate in foreign trades.

List of Banks:

|Bank of Ceylon | |Banque de Commerce et de Placements SA |
|COLOMBO | |GENEVA |
|SRILANKA | |SWITZERLAND |
|SWIFT NO.: BCEYLKLX | |SWIFT NO.: BPCPCHGG |
|ACCOUNT NO.: 1977950 | |ACCOUNT NO.: 10.601998-0-100-CHF-0 |
|CCY: LKR | |CCY: CHF |
| | | |
|Citibank NA | |Citibank NA |
|MUMBAI | |NEW YORK |
|INDIA | |U.S.A. |
|SWIFT NO.: CITIINBX | |SWIFT NO.: CITIUS33 |
|ACCOUNT NO.: 11507018 | |ACCOUNT NO.: 36022105 |
|CCY: ACU | |CCY: USD |

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| |
| |
| |
|MashreqBank PSC |
|MUMBAI |
|INDIA |
|SWIFT NO.: MSHQINBB |
|ACCOUNT NO.: 61049778 |
|CCY: INR |
| |
| |
| |
| |
|Sonali Bank Limited |
|KOLKATA (CALCUTTA) |
|INDIA |
|SWIFT NO.: BSONINCC |
|ACCOUNT NO.: CIO2ACUD07 |
|CCY: ACU |
| |
|Sonali Bank Limited |
|KOLKATA (CALCUTTA) |
|INDIA |
|SWIFT NO.: BSONINCC |
|ACCOUNT NO.: C102EUR03 |
|CCY: ACU |
| |
|Sonali Bank (UK) Limited |
|LONDON |
|U.K. |
|SWIFT NO.: BSONGB2L |
|ACCOUNT NO.: 0100000424700 |
|CCY: GBP |
| |
|Sonali Bank (UK) Limited |
|LONDON |
|U.K. |
|SWIFT NO.: BSONGB2L |
|ACCOUNT NO.: 0600000424701 |
|CCY: EUR |
| |
|Standard Chartered Bank |
|FRANKFURT AM MAIN |
|GERMANY |
|SWIFT NO.: SCBLDEFX |
|ACCOUNT NO.: 018105510 |
|CCY: EUR |
| |
| |
| |
| |
| |
|Standard Chartered Bank |
|MUMBAI |
|INDIA |
|SWIFT NO.: SCBLINBB |
|ACCOUNT NO.: 22205243254 |
|CCY: ACU |
| |
|Standard Chartered Bank |
|NEW YORK |
|U.S.A. |
|SWIFT NO.: SCBLUS33 |
|ACCOUNT NO.: 3582040650001 |
|CCY: USD |
| |
| |
| |
| |
| |
|Summit Bank Limited |
|KARACHI |
|PAKISTAN |
|SWIFT NO.: AHRBPKKA |
|ACCOUNT NO.: 1-2-1-20315-931-120524 |
|CCY: ACU |
| |
|The Bank of Tokyo-Mitsubishi UFJ Ltd |
|LONDON |
|U.K. |
|SWIFT NO.: BOTKGB2L |
|ACCOUNT NO.: 3301GBPDTF027508 |
|CCY: GBP |
| |
| |
| |
| |
| |

15

NGO: The bank help different Non- Government Organizations(NGOs) to provide SME and Micro-credit loan to the small entrepreneurs of Bangladesh.

Regulatory Authority: The Board of Directors and Central Bank of Bangladesh are the regulatory authority of BASIC bank.The bank provides accurate financial reports, research papers, other documets to them.

Share holder: As BASIC Bank’s 100% share is owned by government of Bangladesh it has no responsibility to distribute the profits but it works for govt. for the development of people and general economy.

Financial Institutions: BASIC Bank maintains communication with different types of financial organizations. In this process it carry on with proper communication skills.

16

Barriers of BASIC Bank:

Communication barriers are the problems that arise at every stage of the communication process and have the potential to create misunderstanding and confusion.

Different barriers to communication of BASIC Bank are described below:

Government interruption: As BASIC Bank is a state hold organization, the govt. interrupts in its banking process.

Complex organizational structure: The more complex structure that BASIC Bank has, the more problem it faces in communication.

Excessive layering of administration: The administrative level of this bank has more layers which creates communication gap between employees and management.

Conservativeness of executive officers: Sometimes officers of this bank are very conservative and ignore to communicate with the employees. This causes barrier to communication.

Low internet speed: Low internet speed occurs when the employees of this bank try to send or receive information through internet.

Facilities: Basic bank offers less facility to the client that’s why the clients are not interested to communicate with this bank.

ATM: BASIC Bank has few ATM booths that are not enough for the clients to fulfill their needs. For this reason clients are not interested to deal with this bank, which acts as a barrier of communication.

Advertisement Problem: BASIC Bank doesn’t promote itself through advertisement. That’s why this bank is not well known to the public of the country.

Geographical barrier: Geographical distance creates communication gap. Sometimes BASIC Bank communicates with other countries. It creates a huge distance to communicate which acts as a barrier of communication. There are time differences are also one major fact of this.

17 C. Report Ending:

Conclusion: BASIC Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loan able funds shall be invested in small and cottage industries sector.

BASIC Bank's services are directed towards the entrepreneurs in the small industries sector. A small industry, as per Industrial policy 1999 approved by the Cabinet, has been defined as an industrial undertaking whose total fixed investment is less than Tk.100 million.
The Bank also supports development of trade, business and other commercial activities in the country. It covers the full range of services to the exporters and importers extending various facilities such as cash credit, export cash credit, packing credit, short term loans, local and foreign bills purchase facilities.
BASIC Bank launched a Micro Credit Scheme in 1994. Micro Credit Scheme provides for the poor for generation of employment and income on a sustainable basis particularly in urban and suburban areas.
The bank also provides funds to investment and leasing companies. The Bank has recently created a venture capital fund for equity support to innovative but risky projects.

BASIC Bank runs its communication process in various ways. Such are Internal Communication, External Communication, Grapevine, etc. By using these different forms of communication BASIC Bank communicates with its employees (upper, middle & lower), clients, regulatory authority, and suppliers. In this report we tried to present the basic communication that has been played by BASIC Bank.

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Recommendation:

1. Being state hold organization it faces difficulty in administrative communication. 2. Customer focus should be emphasized. 3. Advanced training facilities for employees should be arranged. 4. General banking activities needs to be more developed to attract general people (ATM service increase, different savings scheme, easy information facilities, etc.). 5. More advertisement should be promoted to make the bank familier. 6. New technological improvisation should be installed with the existing

19
D. Appendix:

20

21

20

20

rganizational Goals

Organizational Structure
-----------------------
Upward Communication

Downward Communication

Horizontal Communication

Vertical Communication

Informal Communication

Formal Communication

Internal Communication

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

AO

OFFICER

OFFICER

OFFICER

OFFICER

OFFICER

OFFICER

OFFICER

OFFICER

AM

AM

AM

AM

DM

DM

DM

DM

M

AGM

GM

BD

BD

BD

BD

BD

BD

BD(MD)

C