Service Quality of BRAC Bank in Bangladesh: A Case Study

What is it about?

This study is designed to explore the service quality of BRAC Bank to its different types of retail customers. The purpose of this study is to identify the perceived and expected service quality factors and to provide suggestions if there is a deviation between the expectations of the customers from the real service.

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Why is it important?

BRAC Bank Limited is a sister concern of BRAC (Bangladesh Rural Advancement Committee) – a nation wide private organization in Bangladesh. BRAC has emerged as an independent and self financed organization in sustainable human development of Bangladesh. It is one of the largest development organizations in Bangladesh employing 97,192 people, with 61% women. These people are working with the two fold objectives of poverty alleviation and empowerment of the rural poor especially rural women. BRAC Bank, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and 2005. The Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh. BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the bank has disbursed over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs in the country. The management of the bank believes that this sector can contribute the most to the rapid generation of employment in Bangladesh. Since the inception in 2001, the Bank opened 22 branches, 350 SME unit offices and 19 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through 2006. Currently, BRAC Bank’s total deposit is Tk. 2,645.59 (in crore), total loans is Tk. 2,450.58 (in crore), and the aggregate business is Tk 5,096.17 (In crore) in Bangladesh.

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