An empirical study of Premium Banking Services of BRAC Bank Limited

Abstract

After starting its journey in 2001, BRAC Bank has now established itself as one of the leading banks in Bangladesh. This has been possible only because of their excellent banking services and prudent strategies taken by authorities. Like other banks they have Retail banking, Wholesale banking, SME banking etc. Under retail banking they have premium banking for their premium customers. There are certain criteria for the customers to become premium customers. Like BDT 40 lacs and above in CASA or BDT 75 lacs or above in TDA. Premium customers enjoy some premium services in BRAC Bank. For example, Pick and Drop service, under this service customer enjoys vehicle support from BRAC Bank to reach or come from airport. Another service BRAC Bank provides is Meet and Greet service. Under this service, customer can have hassle free travel and avoid botheration in the times of check in and check out. Premium customers also can enjoy the premium lounges in different airports in the world. BRAC Bank also has yearly health voucher for their premium customers. They can have a thorough health check up in Apollo and United hospitals totally free of cost once a year. Other than that premium customers receive birthday cakes each year with bouquet. It is obvious that these premium services are going to add some extra cost in the balance sheet of BRAC Bank. But I have tried to find out whether these services only increasing burdens for the bank or bringing some benefits instead. After detail study I have found that after adding these special services, the growth rate of premium customers increased by 11.64%. Similarly, the growth rate of premium deposits also increased by 11.68% after adding these services to premium banking. These services not only increased the number of premium customers and deposits but also improved the brand value of BRAC Bank comparing other banks in the country.