Marketing Strategy of Basic Bank

Introduction

The Bank of Bangladesh Small Industries & Commerce Limited (BASIC) established as Banking Company under the Companies Act 1993 launched its operation January 21, 1989. At the outset, the Bank started as a joint venture enterprise of the Bangladesh Credit Commerce (BCC) foundation with 70 percent shares and Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being non functional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the Bank on 4 June, 1992. 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 (SSI).BASIC 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% of Loan able funds shall be invested in Small and Cottage industries Sector.

Bangladesh Small Industries and Commerce Bank Limited, popularly known as BASIC Bank, are state-owned. However, it is not a nationalized Bank. It is a bank-company and operates on the lines of a private bank. The very name Bangladesh Small Industries and Commerce Bank Limited is indicative of the nature of the bank. 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. Thus the bank’s priority remains with promoting and financing development of small-scale industries in the country. According to Industrial Policy 1999, “Industry” is broadly defined to include both manufacturing and service sectors. “Manufacturing Industry” includes all production, processing, and assembling activities as well as repairing and reconditioning of processed goods. “Service Industry” includes those service-oriented activities, which involve significant use of equipment or fixed assets. Service Industry...