Financing Small and Medium Enterprise: A case study of BASIC Bank Ltd

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Authors

  • Department of Business Administration, City University, Dhaka ,BD
  • Basic Band Ltd Mirpur Branch, Dhaka ,IN

DOI:

https://doi.org/10.18311/sdmimd/2012/2742

Keywords:

Small, Medium, Enterprises, Bank, Bagladesh.
Entrepreneurship

Abstract

The study was undertaken with the objective of analyzing the present Status of SME finance by BASIC Bank Ltd, Uttara Branch, and Dhaka. The data for the study were collected both from primary as well as secondary sources. The study revealed that the concerned branch provided working capital of Tk.18.5. crore in the SME sector during the study period with 13 percent interest rates which 77 percent of total loan portfolio was although purchasing fixed assets & others constituted only 23 percent of the same. Majority of the clients belonged to the age between 30 to 50 years & only 20 percent belonged to the age group of above 50 years. The profile of an enterprise as well as entrepreneur was studied as a test case for the study which generated sensation among the researchers. The study ended with some policy prescription which included more promotional activities of product & services, arranging training for both loanees & officers, analyzed customer's behavior specially repayment etc. The study concluded that by increasing the branches, BASIC Bank could expand their SME service throughout the country.

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Published

2012-09-01

How to Cite

Roy, M. K., & Muatarin, M. (2012). Financing Small and Medium Enterprise: A case study of BASIC Bank Ltd. SDMIMD Journal of Management, 3(2), 43–62. https://doi.org/10.18311/sdmimd/2012/2742

 

References

Annual Report(2009) BASIC Bank Limited, Head Office, Dhaka.

Baas, T and Schrooten , M,(2995),” Relationship Banking and SMEs: A Theoretical Analysis (January 2005),” DIW Discussion Paper No: 469,” available at http:// ssrn.com/abstract==78834 (accessed 20 June 2009)

Christopher, M, Payne, A. and Ballantyne, D.(2002), Relationship Marketing: Creating Stakeholder value , Oxford, UK: Butterworth-Heinemann Ltd.

Small and Medium Enterprise Financing Policy Manual of Basic Bank Limited.(Published by Bangladesh Bank)

Several Booklets from Basic Bank, i.e. Basic Kolanni, Basic SME etc.

Operational Guidelines for Loan and Advances. (Published by BangladesBank)

Documents and other necessary papers of ‘Kona Fashion' from BASIC Bank Ltd, Uttara Branch.

de la Torre, A, Martinez Peria, M.S., and Schmukler S (2009),” Bank Involvement With SMEs : Beyond Relationship Lending,' Journal of Finance & Banking, 34, 2280-2293

Zineldin, M. and Jonsson, P.(2000),” An Examination of the Main Factors Affecting Trust / Commitment in Supplier- Dealer Relationship: Am Empirical Study of the Swedish Wood Industry,” The TQ Magazine 12 (4), 245-265