Professional Documents
Culture Documents
Internship Report On IFIC Bank
Internship Report On IFIC Bank
Our high banking official has also felt the importance of having
entry-level officer who are well educated in banking field.
Accordingly, MBM program has been started in earlier of this year.
The entire fourth term of this MBM program has been designed for
gaining practical knowledge about banking and all the MBM
students are required to go to various financial institutions for
practical exposure. Having completed practical orientation, all the
students are also required to submit a report on their experience.
1.2 Objectives of the Study
The primary objective of this study is to attend the course of
Practical Orientation in Banks, which is the subject of MBM 4 th
Term. But the objective behind this study is something broader.
Objectives of the study are summarized in the following manner
a. To comply with the entire branch banking procedures
b. To make a bridge between the theories and practical procedures
of banking day to day operations
c. To understand the terms that has been taught in the last nine
months in BIBM and the courses that will be taught in the next
year courses
d. To analyze the performance of the branch as well as IFIC Bank
Limited as a whole.
e. To have some practical exposures that will be helpful for my
second year courses in the MBM program.
1.3 Important of the Report
This report is prepared to give a concrete idea about the dealing
and transactions of any Commercial Bank. I believe that my report
will help a lot those who want an orientation about banking. Bank
management also can be using the information of my observation
for their managerial decision if needed.
1.4 Methodology
This report has been prepared on the basis of experience gathered
during the period of internship form 12 October to 28 December.
Within this period I visited three department namely General
Banking, Advances and Foreign Exchange departments.
Firstly total duration were divided into total working days that
came to a total working day of 58 days and were distributed in the
following manner
Departments
Duration
In Days
General Banking
15 Days
Advances
24 Days
Foreign Exchange
19 Days
The Bank has built up a strong reserve base over the years. In last
19 years its Reserves and Surplus have increased overly. As
against Tk. 21.20 million only in 1983 Reserve and surplus
increased to Tk.622.53 million in 2001. This consistent policy of
building up Reserves has enabled the Bank to maintain a better
adequacy ratio as compared to others.
With the active support and guidance from the Government, the
bank has been showing a steady and improved performance. In its
fifteen years operation, the bank has earned the status of leading
in terms of both business and goodwill.
Starting modest deposit of only Tk. 863.40 million in 1983 the
Bank has closed its business with Tk. 17616.68 million of deposit
as on December 31, 2001. The annual growth rate has mostly been
higher compared to both banking sector growth and individual
growth rates achieved by others.
As against a profit of Tk. 21.94 million in 1984, the Bank earned a
record profit of Tk. 248.00 million for the year ended on December
2001.
2.4 Distribution of Branches
The Bank covers by its activities all the important trading and
commercial centers of the country. As on December 22, 2002 it
had 55 branches within Bangladesh.
2. 5 Operation Abroad
Joint Venture
a.
b.
Branch abroad
a.
b.
S e n io r E x e c u tiv e V ic e -P re s id e n t
E x e c u tiv e V ic e -P re s id e n t
S e n io r V ic e -P re s id e n t
F irs t V ic e -P re s id e n t
V ic e -P re s id e n t
S e n io r A s s tt. V ic e -P re s id e n t
F irs t A s s tt. V ic e -P re s id e n t
A s s tt. V ic e P re s id e n t
S e n io r S ta ff O ffic e r
S ta ff O ffic e r
O ffic e r G ra d e - I
P ro b a tio n a ry O ffic e r
O ffic e r G ra d e - II
A s s ita n t O ffic e r
O ffic e A s s is ta n t
D riv e r
S e c u rity S ta ff
O ffic e A tte n d a n t
GENERAL BANKING
3.1 Introduction
General Banking department performs the core functions of Bank
operates the day to day transactions. They take the deposit from
the customer and meet their demand for cash honoring their
cheeks. The department is very rush and the employee here are
too upgrade to their duty. They pass entry of every transaction
within the day. It opens new accounts, remit funds, issues bank
draft and pay order etc. Since Bank is confined to provide these
services everyday, general banking is knows as Retail Banking.
3.2 Different Departments of General Banking
It has five major parts in the branch to perform. The sections are
as following
a.
b.
c.
d.
e.
10
Step 1
1.
2.
Step 23.
4.
5.
Step 3
Step 4
Step 5
11
Individual person
ii.
iii.
Partnership firm
iv.
v.
vi.
vii.
Bank Employee
Practical orientation in IFIC Bank Motijheel Branch
12
Profession/Nature of business
13
Trade license
Certificate of incorporation.
14
List of directors
15
16
Demand Draft
ii.
Pay Order
iii.
Telegraphic Transfer
iv.
Telephone Transfer
v.
Telegraphic and Telephone transfer are almost the same, both are
them are known as TT in short. So the basic three types of local
remittances are discussed below:
17
Points
Explanation
Payment
from
Generally
used to
Remit fund
Payment
Process of
the paying
bank
Pay Order
Demand Draft
Demand Draft is an
order of issuing bank
on another branch of
the same bank to pay
specified sum of
money to payee on
demand.
TT
Issuing branch
requests
another branch
to pay specified
money to the
specific
payee
on demand by
Telegraph/
Telephone
Payment
from
ordered branch
Within
the
clearinghouse
area of issuing
branch.
Anywhere in the
country
Outside the
clearinghouse area of
issuing branch. Payee
can also be the
purchaser.
Payment
is 1.Confirm that the DD
made through is not forged one.
clearing
2.Confirm with sent
advice
1.Confirm
issuing branch
2.Confirm Payee
A/C
3.Confirm
amount
4.Make payment
4.Make
payment
5.Receive
advice
Charge
Only
commission
Commission
charge
telex Commission
telephone
18
Up to Tk
Tk 15
Tk 1 to Tk 1000
Rate of commission:
Commission
Up to Tk
Tk 15
Tk 1 to Tk 1000
Tk 25
Tk 1001 to Tk 100000
Tk 50
Tk 100001 to Tk 500000
Tk 100
Above Tk 1000
19
20
PO / DD
Cash A/C------------------Dr.
Against Cash
Originating
TT / MT
Cash A/C------------Dr.
Party A/C------------------Dr.
Against Transfer
Originating
Party A/C------------Dr.
Responding
When
Advice
Received - for DD
When DD Placed
Against Advice
When DD Paid
without receiving
Advice
3.10.10 Cancellation of DD / PO / TT
21
Step 1
Step 2
Step 3
Incoming
Journal
Posting
Outgoing
Step 4
Explanation
Clearing Process
Partys A/C
------Dr.
IFIC General Account -------Cr.
Cheques of other
branch of IFIC
Bank within our
clearing
house
area
Cheques
another
within
clearing
area
OBC
(Outward
Bills
for
Collection)
Clearing
Cheque
of
bank
our
house
22
Types
Explanation
Clearing Process
These Cheques are cleared in two
ways:
OBC
(Outward
Bills
for
Collection)
Inward
Bills
for
Collection
(IBC)
From
Bank
other
Cheques
of
another
bank
which is situated
outside
the
clearing area
branch
of
IFIC
Cheques
are
settled
depositors account and
DD, MT, TT in favor of
bank
23
Cash Receipt
Step 2
Step 3
Step 4
Cash
Register
Payment
24
Only the account holder himself and the authorized person can
liquid the FDR after maturity.
ii.
iii.
In case of
liquid.
iv.
v.
ii.
25
Clean Cash
Extract
General Ledger
Statement
Affairs
of
26
ADVANCE
4.1 Introduction
This is the survival unit of the bank because until and unless the
success of this section the survival is a question to every bank. If
this section is not properly working the bank itself may become
bankrupt. This is important because this is the earning unit of the
bank. Banks are accepting deposits from the depositors in
condition of providing interest to them as well as safe keeping their
interest. Now the question may gradually arise how the bank will
provide interest to the clients and the simple answer is advance.
Why the bank provides advances to the borrowers
a. To earn interest from the borrowers and give the depositors
interest back
b. To accelerate
27
28
2.
3.
4.
5.
Pledge
2.
Hypothecation
3.
Mortgage
4.
lien
5.
Assignment
6.
Set-off
4.5.1 Pledge:
Pledge is the bailment of goods as security for payment of a debt
or performance of a promise. Bailment is the delivery of goods by
one person to another for some purpose under a contract.
Delivery of goods:
Actual delivery
29
Pledgee has aright to retaining the goods for the security until
final payment of debt.
Chemicals
Explosive
Inflammable goods
Adulterate goods
4.5.2 Hypothecation:
In this charge creation method, physically the goods remained in
the hand of debtor. But document of title of goods are handed over
to the banker .The method is also called equitable charge. Since
the goods are in the hand of the borrower, bank inspects the goods
regularly to judge its quality and quantity for the maximum safety
of loan.
Characteristics of hypothecation:
4.5.3 Mortgage:
30
Mortgagor
2.
Mortgage
3.
Mortgage money
4.
Mortgage deed
5.
Land/Building
Characteristics of Mortgage:
1.
2.
3.
4.
The mortgagor gets back all his rights after repayment of loan.
Types of Mortgage:
1.
Legal/Registered Mortgage
2.
Equitable Mortgage
3.
4.
English Mortgage
5.
Usufructuary Mortgage
6.
Anomalous Mortgage
31
In this way the mortgagor transfers to the mortgage the legal title
and interest of the property.
Equitable mortgage:
Another method Called equitable mortgage is also used in bank for
creation of charge. Here mere deposit of title to goods is sufficient
for creation of charge. Registration is not required. But in equitable
mortgage bank an undertaking from the customer that if bank
required, customer is bound to register the property to bank.
4.6 Processing of Loan
Application for loan
Applicant applies for the loan in the prescribed form of bank.
Getting credit information:
The bank collects credit information about the applicant to
determine the credit worthiness of the borrower. Bank collects the
information about the borrower from the following sources:
i.
Personal investigation
ii.
iii.
32
33
Evaluating Collateral
Evaluation by Agent
Branch Level
Decision
Supervision of Loan
Legal Recovery
Recovery of Loan
Usual Recovery
34
35
36
b) Loan
4.15 Overdraft:
Overdraft are those advance which is allowed on current account
operated upon by cheques. The customer may be sanctioned a
certain limit within which .he can overdraw his current within a
certain period .The customer can withdrawals or deposits any
numbers of within his limit. Interest is calculated and charged only
on the actual debit balances on daily product basis. Overdraft
facility is generally given to businessman for expansion of their
business.
Bank gives overdraft in following three ways:
Cash credit
37
Government security
Shares
Work order
If any customer wants to get SOD facility from the Bank, he has to
submit an application to the Bank manager .It must be done in
prescribed form of the bank. In this has to submit details about his
business. After getting application form bank made an office note.
In this note bank officer write down the following things:
Nature of limit
Extent of limit
Security
Margin
Validity
38
For share bank can sanction 70% credit facility for A grade share
and 60% for B grade share .In case of SOD on share the last six
months average value or present value, which one is higher, is
considered.
SOD on work order:
If any party wants to get SOD facility from the bank after getting
work order, he has to submit an application with reliable security
mention there .In past time bank give SOD facility without any
collateral security. But now bank do not give any SOD facility
against work order .If bank see that all of his papers are eligible for
getting SOD facility, bank asks him to give a power of attorney to
the bank for receiving all kinds of payment for the work. He can
get up to 50%of the amount of the work that he has to done. But
he has to submit his collateral security for that. He gets 50% SOD
facility against his collateral security. After getting power of
attorney bank sends a request letter to the authority by which the
work has been issued. Then that authority sends a letter to the
bank that they will make all of the payment of the party through
the bank. After getting the letter the bank credits the SOD amount
to the customers current account. When bank gets payment from
the authority, they make a ratio and cut off their amount from that
payment.
The following charge documents are taken from the customer:
Letter of arrangement
Letter of continuity
39
Working capital
Trading purpose
Pledge
Hypothecation
Pledge:
Pledge means the customer transfer his goods to the bank. But the
ownership ship of the goods is in his position. That means only
transfer the goods to the banks but not ownership.
Hypothecation:
It is a kind of security where neither the ownership nor the position
of the goods is transfer to the bank.
40
In branch level bank cannot give more then 30lac taka to his customer.
But if bank want give more then 30 lacs. The branch has to get approval
from head office of the bank.
For giving CC bank take following charge document:
1.
DP note
2.
Letter of arrangement
3.
Letter of continuity
4.
5.
6.
7.
8.
9.
41
3.
a.
b.
c.
d.
e.
f.
g.
h.
Charge Documents:
Obtain the following charge documents from the exporter:
a.
b.
c.
Letter of Pledge/hypothecation
d.
Letter of Arrangement
e.
Letter of Disbursement
42
f.
g.
h.
4.16 Loan:
In case of loan, the banker advances a lump sum for a certain
period at an agreed rate of interest. The entire amount is paid
an occasion either in cash or by credit in this current account,
which he can draw at any time. The interest is charged for the
full amount sanctioned whether he withdraws the money from
his account of not. The loan may be repaid in installments or
at expire of a certain period. Loan may be demand loan or a
term loan.
Advance made in a lump sum repayment either on fixed
installment basis or in lump sum on subsequent debit except
by way of interest, incidental charge, etc. is called a loan.
After creation of loan there will be only repayment by
borrower. The loan may be repaid in installment or at expire of
a certain period.
Loans are normally allowed to those parties who have either
fixed source of income who desire to pay it in lump sum.
Banks gives different types of loan to his party.
4.17 Types of loans:
The different types of loan that banks give to his party are as
following:
1.
43
d) Others
2.
3.
4.
5.
Consumer credit
6.
7.
Characteristics
a.
Industrial Loans b.
c.
a.
Transport Loans b.
c.
a.
House
Loans
b.
Building
given
to
accelerate
the
facility
c.
d.
Others Loan
Including
agricultural Loan
transport
44
the approval of sanction of SHBL and the term and condition of the
loan.
45
Rate of interest:
Rate of interest is one percent higher then bank rate.
Disbursement of the loan is made through payment order in favor
of the company/person from which the land/building is bought.
Security:
Legal mortgage of that land or flat.
Documents to be obtained:
1.
DP note
2.
Letter of disbursement
3.
Letter of installment
4.
5.
Interim guarantee
6.
7.
8.
b.
c.
46
d.
e.
b.
c.
He must have a net take home income of at least Tk. 10,000/per month and 3 (three) times of EMI.
b.
b.
c.
47
Limit Range:
Tk. 10,000/- to Tk. 7,00,000/Loan Amount:
Loan amount will be 80% of the Invoice/Quotation amount.
Down Payment:
Minimum equity contribution will be 20% of the invoice/ quotation
amount which will be realized from the borrowers Savings
Account.
Interest Rate and Fees:
a.
b.
c.
d.
Payment Order:
A payment order of the Invoice/Quotation amount will be issued in
fervor of the supplier of the consumer item.
Application Form & Other Forms:
Customer must submit Application Form (Banks prescribed form)
duly field in and also submit the following forms,
a. Form A Letter from the borrower to his/her employer
b. Form B Employers certificate to the Bank
c. Form C Particulars of guarantor and a letter of guarantee
duly executed from a person acceptable to the Bank.
Photograph:
A recent passport size photograph of the customer (attested by the
employer or the guarantor when customer is a businessman) and
the guarantor (attested by the Gazette Officer).
Delivery Challan & Money Receipt
Borrower must deliver Money Receipt and Delivery Challan of the
asset purchased to the lending.
48
Repayment Arrangement:
a.
b.
Penal Interest:
Penal Interest for delay payment will be charged @ Tk. 50/- if the
installment is not paid within 15 days from the 7 th of each month.
Thereafter, penal interest for delayed payment will be charged @
Tk. 75/- for subsequent delay of each 15 days.
4.17.4 Staff loan against provident fund:
IFIC bank has so long been allowing loan to staff against provident
fund upto 80% of their own contribution adjustable in 24 (twenty
four) equal monthly installments.
We are now pleased to inform you that Management has, of late,
decide to allow loan to staff against their provident fund as per the
following criterion: Sl.
No.
Criterion
P.F. Loan
ceiling
Repayment
period
(Maximum)
i)
80%
of
own
contribution
48
equal
monthly
installments
ii)
60%
of
both
contribution
48
equal
monthly
installments
iii)
70%
of
both
contribution
48
equal
monthly
installments
iv)
80%
of
both
contribution
48
equal
monthly
installments
49
3.
Charge Documents:
Obtain the following charge documents allowing the advance:
a.
b.
Trust Receipt.
c.
Letter of Arrangement.
d.
Letter of Disbursement.
e.
f.
g.
Personal guarantee
company.
h.
i.
of
50
Director
in
case
of
limited
B.
a.
b.
c.
a.
b.
51
Continuous loan
(C/C; O/D.)
Demand
loan
(LIM; PAD; FBP;
IBP)
Term loan up
to 5 years
Term
above
years
Unclassified
Less
than
months
Less
than
months
Less than 6
months
Less than 12
months
Substandard
3
months
or
more but less
than 6 months
3
months
or
more but less
than 6 months
6 months or
more
12 months or
more
Doubtful
6
months
or
more but less
than 12 months
6
months
or
more but less
than 12 months
12 months or
more
18 months or
more
Bad loan
12 months
more
12 months
more
18 months or
more
24 months or
more
or
or
loan
5
b)
c)
d)
52
Criteria
Decision
Good
Acceptable
Marginal
Poor
Security Risk
13 19
20 - 26
27 - 34
34 ++
-20 ~ -15
-14 ~ 0
0 ~ 10
10 ++
53
C. Precaution:
Whatever may be the type of the guarantee, before issuance, the
specimen of the guarantee should be thoroughly examined to ascertain
that it has no ambiguity. The issues like (1) the extent of liability
(guarantee amount/interest/charges etc.), (2) validity (contract
period/claim submission period/clause of extension etc.) and (3)
responsibility of the bank (on demand unconditional/at own initiative
etc.) should stand clearly defined.
D. Duration:
Normally a bank issues guarantees for a period not exceeding one year
at a varying percentages of margin and security determined. On the
basis of customer banker relationship and nature of liability undertaken.
A bank may also issue guarantee for longer duration or a continuing
bank guarantee subject to its security aspect well taken care of.
E. Application:
While approached for issuance of a bank guarantee, the branch should
as ask the customer to submit the following papers.
a) A written request for the guarantee specifying the purpose,
amount, period and the security offered.
b) The details of the security other than the cash margin.
c) Specimen of the guarantee (in case a prescribed proforma does
not exit, a specimen may be drafted to suit the requirement
incorporating the amount, tenor and purpose with banks
obligation clearly spelled out).
F. Formalities:
While deciding the issue a guarantee, the following should obtained
prior to issuance.
a) Cash margin as may be determined.
b) Counter guarantee signed by the client.
c) Specimen of guarantee duly approved by the customer.
In case the guarantee is covered by any other security other than cash
margin which may generally be following types:
a.
b.
54
c.
d.
55
Foreign Exchange
5.1 Introduction:
Foreign Exchange Department is international department of Bank.
It deals globally. It facilitates international trade through its various
modes of services. It bridges between importers and exporters. If
the branch is authorized dealer in foreign exchange market, it can
remit foreign exchange from local country to foreign country. This
department mainly deals in foreign currency. This is why this
department is called foreign exchange department.
Some national and international laws regulate functions of this
department. Among these, Foreign Exchange Act, 1947 is for
dealing in foreign exchange business, and Import and Export
Control Act, 1950 is for Documentary Credits (UCPDC 1993
revision & International Chamber of Commerce Publication no
500) is also an important law for settlement of terms and
conditions between exporter and importer in international trade.
Governments Import &Export policy is another important factors
for import and export operation for banks.
5.2 Import Operation:
Introduction: Import of merchandise essentially involves two
things, bringing of goods physically into the country and remittance
of foreign exchange towards the cost of the merchandise and
services connected with its dispatch to the importer. The first part
is regulated by the ministry of commerce while Bangladesh Bank
regulates the payments for these imports.
Import section helps business and other people to import goods. In
international environment, buyers and sellers are often unknown to
each other. So seller always seek guarantee for the payment for his
goods exported. Here is the role of bank. Bank gives export
guarantee that it will pay for the goods on behalf of the buyer. This
guarantee is called Letter of Credit. Thus the contract between
importer and exporter is given a legal shape by the banker by its
Letter of Credit.
When a buyer goes to import some goods from a foreign buyer, he
request his bank makes payments to the exporter of goods. And
the bank recovers the amount from the importer.
Practical orientation in IFIC Bank Motijheel Branch
56
b)
c)
d)
Issuing Bank
Confirming Bank
Advising
or
Notifying Bank
Negotiating
Bank
Paying
or
Accepting Bank
Reimbursing
bank
57
5.4.2 Settlement:
a)
b)
c)
d)
The Issuing bank after checking that the documents meet the
credit requirement makes reimbursement in the pre-agreed
manner
e)
f)
58
Importer
Dhaka
(Applicant)
Forwards
L/C to
(4)
Presents
Docs and
Obtains
Payment
Form
(6)
Midland Bank
London
Advising/
Negotiating Bank
Recovers
Amount
Form
(8)
Obtains
Reimbursement
Form
(7)
59
Applies
For
Opening
of L/C
(2)
Modern Bank
Dhaka
(Issuing Bank)
2.
2.
3.
60
2.
61
Documents
submitted by the
importer.
Indent/ Proforma
invoice insurance
Send documents
62
Negative Report
ICC
ND (Non-delivery)
War
Public Notices
2.
3.
4.
Total liability
Proposal L/C
Remark about
repayment
Approval
margin,
63
amount,
account,
goods,
basis
5.4.11
L/Cs SET:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Pro-forma invoice
L/C No.
2.
3.
4.
5.
64
6.
Name of indentor
7.
Document accompanied
8.
9.
Shipment information
2.
3.
Beneficiarys name
4.
Name of Applicant
5.
Amount specified
6.
Shipment
7.
Expiry
8.
Accompanied documents
a) Invoice
b) Full set of (Shipped on board/ocean bill of lading/truck
receipts)
c) Insurance cover
1.
Shipment information
Special conditions
2.
3.
65
66
Party application
2.
3.
4.
5.
6.
7.
67
Mentioning:
B/L No.
Port of lading
Brief description
Marks
Joint seal/signature
Partys signature & seal
and
For International Finance Investment
and commerce Bank Limited
Motijheel, Dhaka
Authorized Signature
Back side of L/G Form:
Please deliver to the order of
M/S ............................................................
For International Finance Investment
and commerce Bank Limited
Motijheel, Dhaka
Authorized Signature
Accounting Process:
DR: Party A/C
CR: Sundry deposit margin on L/C Cash
CR: Income A/C Commission on PAD Cash
When original documents come to out hand, then
DR: Sundry deposit margin on L/C Cash
CR: IFIC Bank General Account H.O
5.8 Export Operation:
Bangladesh exports a large quantity of goods and services to
foreign households. Readymade textile garments (both knitted and
woven), Jute, Jute-made products, frozen shrimps, tea are the
Practical orientation in IFIC Bank Motijheel Branch
68
69
2.
3.
4.
5.
6.
7.
8.
9.
Pro-forma invoice
02 copies for opening bank 01 copy as office copy & other for
CCI & E
2.
3.
5.9.3 Voucher:
Contra voucher
DR: Customers liability L/C BB
70
PAD (EDF):
71
Notional Rate
+
CR: IFIC Bank General A/C- H.O
(amt. = 20% exchange gain)
+
CR: Income A/C- Exchange gain
(amt. = 80% exchange gain)
Total Gain: Foreign Currency (in US$) * (Ready buying rate = TT
buying rate)
72
Accounting Treatment:
DR: FDBP A/C
CR: Party A/C (CD)
+
STD A/C Used as inking find)
+
Income A/C Postage Recovery (DHI charge)
+
Sundry deposit A/C Sundry Creditors
(It covers both income tax and local commission)
Local Commission Payment:
DR: Sundry Deposit A/C - Sundry Creditors
CR: PO (In favour of concerned buying house)
+
Income A/C Commission on Remittance Inland
Buying house commission: Usually commission rate is
mentioned in the back page of L/Cs supported by transfer mechanism.
73
CD A/C
STD A/C
2.
74
2.
Revocable
Irrevocable
&
b.
a.
&
b.
a.
b.
a.
Adding
Confirmation
Amendment of
Credit
b.
Validity
Expiry
Credit
and
a.
All L/C must mention the expiry date of L/C within which
of documents for payment/acceptance/negotiation must be
presented.
b.
c.
d.
75
Cash
(ECC)
Payment
Against
Document
(PAD)
IP Loan
76
77
Cash
Remittance
Dollar/
Pound
Travelers
Cheque
(TC)
Sell
Purcha
se
Issue
of TC
Buying
Of TC
Telex
Transfer
Foreign
Demand
Draft
Outwar
d TT
Incomi
ng TT
78
79
: Rate to be applied
+
CR: Income A/C Commission
ii) DR: F.C Fund A/C
: Notional Rate
: Rate to be applied
: Notional Rate
: Notional Rate
: Notional Rate
80
: Mid Rate
81
Student File
NRIT
Account
F.C.
Account
Students who are desirous to study abroad can open file in the
bank. By opening this file, bank assures the remittance of funds
in abroad for study.
Non resident Investors Taka Account is account
Non-resident Bangladeshi can deposit foreign currency for
investment in security of stock exchanges.
Foreign Currency accounts opened in the names of Bangladeshi
nationals or persons of Bangladeshi origin working or selfemployed abroad can now are maintained as long as the
account holders desire.
Stands for Non-resident Foreign Currency Deposit
NFCD
Eligible persons may open such accounts even after their return
to Bangladesh, within six months of their arrival.
Stands for Resident Foreign Currency Accounts
RFCD
Accounts
Application
2.
Employers
certificate
3.
4.
certificate
or
any
confirmation
certificate/job
82
: Notional Rate
83
ii.
iii.
84
iv.
v.
6.3 Recommendation:
Although this branch is making huge amount of profit and
generating large volume of deposit, a number of problems have
been detected while working this branch. These problems along
with the recommendations for solving them are stated here.
6.3.1 Speed up processing of loan application:
Processing of terms loan takes at least three six months and
short- term loan takes about one month in the branch. Most of this
time is spent for correspondence between Head Office and Branch.
In developed economy, banking system takes on average 3-8
weeks for processing term loan and 7-15 days for short- term loan.
If loan processing time is lengthy, it will not get good borrower. So
the branch manager should be given more power to sanction loan.
This power can eliminate the time, which would be lapsed in
correspondence between Head Office and Branch. Branch should
have independent appraiser for appraising term loan proposal. Now
term loan is appraised by Head Office appraiser.
6.3.2 Bank should immediately enter into the credit card market:
This bank does not have any plan to enter into the Credit Card
Market. It is well versed that tomorrows payment will be consisted
of only plastic money (Credit Card). A large part of business
transaction will be done by credit card in near future. In western
world, more than 50% of transactions are in credit card. If this
bank does not prepare from now on, it cannot compete in the
future market. So, the branch should give special attention to the
introduction of Credit Card.
85
86
87