Prepare a memorandum for the Board of Directors to allow a car loan facility for senior officials of the bank - Banking Diploma Education

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Monday, December 2, 2013

Prepare a memorandum for the Board of Directors to allow a car loan facility for senior officials of the bank

Q. Prepare a memorandum for the Board of Directors to allow a car loan facility for senior officials of the bank.

Social Investment Bank Ltd
Head Office
Dilkhusha Commercial Area
Dhaka 1000
(Common Service Department)
Telephone: 02-715 000 Facsimile: 02-715 2339 Email: siblcommonservice@siblbank.com

Our Ref: Board Memo/carloan/CS01/09
Wednesday, May 14, 2009

CAR LOAN FOR SENIOR OFFICIALS

Social Investment Bank Ltd (SIBL) has at present 87 sedans, 25 jeeps and 12 pickups which are being officially used all over Bangladesh. Of these vehicles, 50 sedans are allotted to executives, from Assistant Vice Presidents to Managing Director, for their alltime use. Each executive has to pay Taka 300 every month against this facility of using the bank’s motor vehicles both for their office and home uses.

The bank has to defray an annual expense of Taka 6 lac for one sedan allotted to each of the executives on account of fuel, driver’s salaries, maintenance, depreciation cost and insurance premium.

It has been observed that families of the executives can’t spare their allotted sedans for any official use of the bank, as they have to use the cars for their domestic purposes day and night.

Considering exorbitant maintenance cost of sedans and also with a view to providing an incentive to the bank officials all other private banks and some of the state-owned banks have already introduced car loans to their executives at bank rate and in some cases at ‘no interest’ in addition to a monthly allowance for maintenance of cars.

If the board of directors decides to give car loans of Taka 15 lac each to all the executives at an interest rate of 2% along with monthly car allowance of Taka 25 thousand the bank will save 40% expenditure on account of maintenance of sedans now being allotted to the
executives.

If approved, the proposition may be placed at the next meeting of the Board of Directors for their consideration.

Maswood Alam Khan


General Manager
Managing Director

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