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‘Consumer Banking of Standard Chartered Bank’


On completion of requisite courses and a comprehensive examination of M.B.A of Chittagong University are required to undertake an internship program. In order to implement this program, each of them is attached with an organization. After the completion of internship program every student is required to prepare a report on a selected topic on the organization where he/she has been attached. The basic purpose of this attachment is to expose the student to the real Business world and acquaint himself/herself with the current operations & practices in modern Business. This exposure is very helpful in comprehending how things move on and to find the gap between theory and practical operation. This report also originates from that some perception about the practical situation as a fresh student. Actually this report comprises how a student has perceived the real situation in the business. As I am being attached with the Standard Chartered Bank, so I always tried of my best to observe how they deal with their Customer. I also studied about their working environment and how to process Credit and Collect outstanding. As a consequence, I have put theoretical glimpses of the key points wherever necessary and have tried to knit a relationship with this observation. Comments and suggestions for future development of the report or any concept will be appreciated.


I here, who am a student of Accounting and Information System, have just appeared the MBA Examination. After completing my written examination and Viva, I started an internship program at Standard Chartered Bank. In attendance in this program, I have acquired practical knowledge. I have assembled an excellent and practical experience. Based of this program, I have prepared this report. Though there were several problems and limitations meanwhile the program I have tried to maintain level of best to make this report instructive and fledgling one Part – 1:- Encompasses objective methodology and limitation the report Part – 2:- Focus on An overview of SCB and Agrabad Branch. Part – 3:- Focus on an overview of Credit & Collection of SCB. Part – 4:- Focus on an overview of SCB Credit Card. Part – 5:- Focus on the portfolio Part – 6:- Focus on the other Bank. Part – 7:- Various types of Packages and offered by SCB. Part – 8:- I have elaborately discussed about my working experience in SCB and all of the things I have learned during my internship period. Part – 9:- I focused on project part, which contains the analysis of the collection data. After analyzing the data I have identified the main problems faced by SCB and also provided some recommendations.

ACKNOWLEDGEMENT I have the immense pleasure and satisfaction in presenting report, which is termination of my project works at SCB. This is one pride to thank one and all who have helped me to take this project a great success. Most of my friends have heartily and cooperatively contributed to prepare this internship report. But scope and limitations prohibits the listing of all of them who have made significant contribution. I articulate my heartiest gratitude to my honorable supervisor Ranjit Kumar Chowdhury, Associate Professor, Department of Accounting and Information System, University of Chittagong for her significant advice and cooperative behavior.

The success of this report depend on the contribution of many people, especially those who spare time to share their mindful art of judging of merits and faults and have given valuable suggestions.
I would like to extend my thanks to the contributors of generous help from whom I have received much information about SCB. I am grateful to Syed Sanowarul Hoque, Credit Manager, Consumer Banking Division Chittagong and K.M. Bodroudoja, Collections Manager, Consumer Banking Division; Chittagong Who permitted us to perform our internship program and coordinated us sincerely. My gratitude also goes to Mr. Tanim Muntasir, Credit Analyst, Mr. Niaz Morshed, Officer, Collection And Mohammed Irfan Haidar Khan, Credit Analyst, Consumer Credit and Collections who have supplied necessary information and given valuable time to prepare my report. I offer my grateful thanks to Hasan Mohammad Iftekhar and Jahangir Iqbal, whose inspiration and kind assistance made my report successful. I could never forget the contribution of nor could express my gratitude fully to all that gave their heartiest effort in helping me. Thank you all.

Md. Kabir Uddin

Kabir Uddin Exam Roll: 82 (2001) Class Roll: 14507 M. Subject: Prayer to accept my internship report. I tried to make full use of this programmer through regular participation. . Dear Sir. I am thanking you. Chittagong.A Department of Accounting &Information system University of Chittagong.B.LETTER OF TRANSMITAL To The Associate Professor Department of Accounting & Information system University of Chittagong. Sincerely Yours. I would therefore pray and hope that your honor would be kind enough to accept my internship report and taking that limitation in account. ---------------------Md. It gives me immense pleasure to submit the research report based on internship report entitled ‘Consumer Banking of Standard Chartered Bank’ to fulfill the partial requirement of MBA program. I sincerely believe that the findings of this report will be of immense help to the academic and references and for any explanation and clarification of any aspect of this report.

The report then evaluated by the judicious teaches & supervisor of the department of Accounting accordingly. To achieve this. 5. 2. C.OBJECTIVE OF THE STUDY The prime objective of this report is to learn practical knowledge along with our Institutional study. a student is supposed to have a weeklong internship program to be conducted in any business or service organization and submit a report on it. The main objectives of the study are as follow: 1. To focus on the product policy of the Bank under study. also I acquire knowledge and evaluate Credit and Collection Policies. Associate Professor Department of Accounting. 8. . To identify the Credit and Collection problem and to suggest remedial measures in order to help and solve those problems.U. 7. To evaluate the promotional policy of SCB. Origin of the report This time come of necessity to submit an internship report in partial fulfillment of MBA program. 4. After the completion of final written examination of MBA. The broad of this internship programmed is to get familiarity with Standard Chartered Bank and its marketing activities. To know the knowledge about Assessment of Various Statement. the following objectives have been considered for the internship programmed. To identify the problem of SCB. The author conducted his internship on “Consumer Banking of SCB. To highlight on the CCU (Credit and Collection Unit) 3. 9. Being guided by Ranjit Kumar Dey. 6.” And produced this report as per requirement. To examine the Credit and collection system of the Bank. For identifying the prospect of the SCB. To identify desire package of SCB Customer.

In view of above problems. journal. paper and different textbook are also used when necessary. Internet. Primary information has been collected from the advertisement. Data collection based is done on a random basis. 3.RESEARCH METHODOLOGY This report is prepared according to the practical experience achieved during the period of internee. PRIMARY DATA: 1. I developed a questionnaire that consisted close ended questions and on open ended question. SCB annual report. The results are represented through bar charts. The relevant information is collected from primary sources as well as secondary sources. Data from different official source and records. 4. I feel interest to know about it through SCB which would be a useful academic experience. . My research findings come out through analyzing those data. 3. SECONDARY SOURCES: 1. All this materials are given below. RESEARCH PROBLEM In my study I mainly depended on primary data which was collected through direct survey. 2. 2. By meeting with responsible Officer. Secondary information has been collected from articles. I also collected data and necessary information by interviewing employees of SCB which can be treated as secondary data. Group discussion with SCB Employee. Another important dimension of the problem may arise from confidential Bank policy and lack of other internal and external sources.

Although the study may be useful for the Banking sector in formulating different policies on Credit and Collection and thereby in future decision making. In the present world a progressive firm always looks forward to make the best utilization and allocation of their resources and make the best use of the scopes and opportunities in order to maintain their position in this competitive market. the students of business and young learners will be benefited and search their knowledge in this report.RATIONALITY OF THE STUDY Bank sector in the present environment has become subject to growing importance and interest with the emergence of giant industrial undertaking. SCB is no exception to it. The marketing professional can consume less time to express their valuable opinion by going through this report. Banking is the part of MBA program. In this report I have tried to present about different pertinent parties can be benefited researcher involved with Bank can get an over view to find out potential competitive advantages. its market position and facilities to customer and other Banking activities. These are all the rational of the study. Coming entrepreneur of Banking Sector will be benefited by this report by analyzing the findings of this report and evaluating potential threats and opportunities. In today’s Bank is the prime mover of most social and market activities and delivery of standard of living to the society. Bank is one of the most suitable sectors for Bangladesh having a good demand and market growth rate. This report is mainly focused on that. It will be also helpful for the policy maker of the Bank to make quick decisions. The research is one of the important parts of the course. professional. The research communicates with the consumer. customer and public to the marketer through information. The potential entrepreneur. . This report will help to know how SCB maintains their Credit and Collection system by managing competition with different Banks. The purpose of the study is to assist the report writer to find out the Banking activities and also the opinion of the Customer about the existing system of SCB and other Bank.

. As my internship program was only for three months it was difficult for me to figure out the report with absolute information and required data. These are still scarce in our country. Whether it is primary or secondary data.LIMITATION OF THE REPORT Time Constraints: In preparing the report time was the principal constraint. I think experienced could have differed a great deal. Data Constraints: Last few decades our banking system developed much with its resources and collaborations. With the best available data this report is illustrated. For the report and proper presentation after internship program in needs much time for preparation. But comparison to Western countries we have the different of few more decades realized (by me) when I attempted to collect essential required data. As organizations permanent employee one can know it but not so this is also one of the limitation of my report. In preparations of the internship report I also used my previous faculty experience although it is needed much more. In the faculty we have produced some reports but not as great as it is. Experience constraints: To prepare and produce such kind of report properly it is needed previous experiences. Organization constraints: As a financial organization SCB has a great deal of hidden information that is not possible to present in the report.

About the Report In this report I have tried to expose a total picture of my activities in SCB. The second part contains Credit. Credit Cards and Project of SCB. mentioned as an observation part. the second part which has been named as Consumer CREDIT and statistical analysis part. This is the part where I have tried to present an overview of the total SCB. in the third part I have drawn on Collection criteria and last part Conclusion. the conclusion and recommendation part. This report is basically divided into three parts and these are: Part – A Part – B Part – C Part – D The first part contains an observation of my work. I have worked on with an introduction to the study. which would be. . the third one has mentioned as Collection and last. The first part.

INTRODUCTION Overview Standard Chartered leading the way in Asia. foreign exchange. This is summary of the main events in the history of Standard Chartered and some of the organizations with which it merged. Standard Chartered is well-established in growth markets and aims to be the right partner for its customers. deposit taking and wealth management services to individuals and small to medium sized enterprises. It serves both Consumer and Wholesale Banking customers. Wholesale Banking provides corporate and institutional clients with services in trade finance. cash management. Africa and the Middle East Standard Chartered employs 30. South Asia. It is one of the world's most international banks. debt capital markets and corporate finance. have always been overwhelmingly international. . events and discoveries that have shaped the world we live in. Its businesses however. Consumer Banking provides credit cards. mortgages.000 people in over 500 locations in more than 50 countries in the Asia Pacific Region. Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE100 companies. with a management team comprising 70 nationalities. Africa. Our History:-A brief history of Standard Chartered Standard Chartered is the world's leading emerging markets bank headquartered in London. lending. personal loans. by market capitalization. Launch the interactive timeline to learn about remarkable people. the Middle East. The Bank combines deep local knowledge with global capability. The Bank is trusted across its network for its standard of governance and its commitment to making a difference in the communities in which it operates. custody. The United Kingdom and the Americas. through out the history of Standard Chartered.

the Standard Bank was founded by a group of businessmen led by another Scot. Today Standard Chartered is still one of the three banks which print Hong Kong's bank notes. in 1862. South Africa.The early years Standard Chartered is named after two banks which merged in 1969. John Paterson. the Chartered Bank is the older having been founded in 1853 following the grant of a Royal Charter from Queen Victoria. In 1861 the Singapore agency was upgraded to a branch which helped provide finance for the rapidly developing rubber and tin industries in Malaysia. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. still one of the world's preeminent publications. Both banks were keen to capitalize on the huge expansion of trade between Europe. James Wilson went on to start The Economist. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. Nine years later. The moving force behind the Chartered Bank was a Scot. Zimbabwe. In 1862 the Chartered Bank was authorized to issue bank notes in Hong Kong. Asia and Africa and to reap the handsome profits to be made from financing that trade. who had immigrated to the Cape Province in South Africa and had become a successful merchant. Subsequently it was also authorized to issue bank notes in Singapore. Of the two banks. Malaysia and even during the siege of Marketing in South Africa. James Wilson. Over the following decades both the Standard Bank and the Chartered Bank printed bank notes in a variety of countries including China. Australia and China. They were originally known as the Standard Bank of British South Africa and the Chartered Bank of India. The Chartered Bank opened its first branches in 1858 in Calcutta and Mumbai. . who made his fortune in London making hats. a privilege it continued to exercise up until the end of the 19th Century.

in 1863.Expansion in Africa and Asia The Standard Bank opened for business in Port Elizabeth.C.R. A branch in Botswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. Both banks survived the inter-war years but the world trade slump led to the closure of operations in the Canary Islands. the Philippines in 1872.R. During 1904 a branch opened in Vietnam. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and rubber industries. Liberia. Malaysia in 1875. Kenya. the Netherlands. and expanded into Mozambique in 1894. It pursued a policy of expansion and soon amalgamated with several other banks including the Commercial Bank of Port Elizabeth. The impact of war Even the First World War offered opportunities for expansion when the Standard Bank set up a branch in Tanzania shortly after British troops occupied the formerly German administered Dar es Salaam in September 1916. Zanzibar and the Democratic Republic of Congo (D. Zanzibar and the D. In Asia the Chartered Bank expanded opening offices in. the Colesberg Bank. and Equatorial Guinea. proved the most difficult and the branches soon closed. half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. Malawi in 1901. in 1911 and Uganda in 1912. Over time. Botswana. Japan in 1880 and Thailand in 1894. South Africa.C. Disaster struck the Chartered Bank's office in Yokohama. Both the Chartered and the Standard Bank opened offices in New York and Hamburg in the early 1900s. when it was destroyed by an earthquake in . Botswana in 1897. what is now Pakistan and Indonesia in 1863.). Japan. Of these new businesses. The Standard Bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. In 1892 the Standard Bank opened for business in Zimbabwe. Zambia in 1906. the British Kaffarian Bank and the Fauresmith Bank. Myanmar in 1862. The Chartered Bank gaining the first branch license to be issued to a foreign bank in New York.

Other operations such as those in Iraq. Cyprus. The post war years After the Second World War many countries in Asia and Africa gained their independence. while in Indonesia the Jakarta office was destroyed in an attempted coup d'etat. The Chartered Bank also entered into a joint venture to form the Irano-British Bank which opened for business in 1959. and the Wallace Brothers Group. Despite these acquisitions and expansion into new countries such as Mexico. In 1948 the Chartered Bank opened in Bangladesh and during 1957 it acquired the Eastern Bank. Australia and China" were finally permitted to open a representative office in Sydney. Myanmar and Libya were nationalized. particularly in Africa. both the Standard and Chartered Bank networks were comparatively small. Beirut. It was one year later that the descendants of the "Chartered Bank of India. Central and Eastern Africa. The Eastern Bank gave the Chartered Bank a network of branches including Aden.1923 killing a number of staff. Australia. 40 branches in Ghana and eleven branches in Sierra Leone in addition to operations in Cameroon and Gambia. Angola. Both viewed the future with some trepidation as the need to protect them from acquisition became ever more apparent. in which it already had a minority shareholding. Bahrain. The Hodge Group brought to Standard Chartered an extensive network of UK offices . Lebanon. Its network grew substantially in 1965 when it merged with the former Bank of British West Africa which had some 60 branches in Nigeria. The bank grew rapidly and had 24 branches when it was nationalized in 1981. The Chartered Bank was particularly affected by the Second World War when numerous Asian countries were occupied by Japan. By the mid 1950s the Standard Bank had around 600 offices in Southern. Standard Chartered subsequently acquired the UK based Hodge Group. Qatar and the United Arab Emirates. This led to local incorporation in some countries. South Korea and Oman (1968). Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming Standard Chartered PLC.

Corporate & Institutional Banking and Treasury in its well established operations in Asia. Standard Chartered in the 1990s Even within this period of apparent retrenchment Standard Chartered expanded its network. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds Bank of the UK made a hostile take-over bid for Standard Chartered. Standard Chartered also opened offices in Argentina. Standard Chartered decided. Panama and Nepal. This led to a series of divestments notably in Europe. By the late 1980s Standard Chartered already had considerable exposure to third world debt. Colombia. re-opening in Vietnam in 1990. to expand the Group outside its traditional markets. Denmark. unprofitable branches closed and back office functions consolidated. During this time staff numbers were reduced. after the merger. In addition expensive buildings were sold with the proceeds reinvested in the business. In the USA a number of offices were opened and three banks were acquired. Standard Chartered won its right to remain independent but entered into a period of considerable change. Africa and the Middle East. the United States and Africa. the Falkland Islands. and after a period of rationalization its name was changed to Chartered Trust Limited. Canada. Belgium. Cambodia and Iran . These included the Union Bank of California which gave Standard Chartered a presence in Brazil and Venezuela.specializing in installment credit and industrial leasing. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking. businesses not considered core were sold or closed. In Europe a number of offices were opened including Austria. Limited. To this were added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered operations in Jersey emerged from the integration of other Hodge Group businesses with those of Wallace Brothers Bank (Jersey). associate holdings disposed of. Spain and Sweden as well as several major cities in the UK. and Ireland. and the senior management team was radically changed and strengthened.

an Andean Region bank involved primarily in trade finance. acquired 75 per cent of the equity of Nakornthon Bank. . Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. Standard Chartered now has an office in every country in the Asia Pacific Region with the exception of North Korea. South Asia. where we have a strong and established presence and where we see our future growth. Standard Chartered also opened a new subsidiary. Standard Chartered today’s Today Standard Chartered is the world's leading emerging markets bank employing 30. The new millennium has brought with it two of the largest acquisitions in the history of the bank with the purchase of Grindlays Bank from the ANZ Group and the acquisition of the Chase Consumer Banking operations in Hong Kong in 2000. Standard Chartered Nigeria Limited in Lagos. Tanzania in 1993 and Myanmar in 1995. In 1998 Standard Chartered concluded the purchase of a controlling interest in Banco Exterior de Los Andes (Extebandes). These acquisitions demonstrate Standard Chartered firm committed to the emerging 1992.000 people in over 500 offices in more than 50 countries primarily in countries in the Asia Pacific Region. In 1999. and agreed terms to acquire 89 per cent of the share capital of Metropolitan Bank of the Lebanon. Thailand. Peru and Venezuela. This acquisition makes Standard Chartered one of the leading clearers of dollar payments in the USA. Africa and the Americas. the Middle East. With this purchase Standard Chartered now offers full banking services in Colombia. With the opening of branches in Macau and Taiwan in 1983 and 1985 plus a representative office in Laos (1996).

Standard Chartered Bank network facilitates fast and convenient connection for foreign trade. Nasirabad. the Bank is serving a large number of local corporate and Government organizations. Gulshan. Sylhet. Uttara Agrabad C/A. . Bazar. Chittagong Khulna Sylhet Motijhel. 10 Kakrail. The standard Chartered Banking activities around the country within the divisional cities and towns can be traced from the following table: Divisional Cities & Points of representation Towns Dhaka Dilkhusa. Acquisition of ANZ Grindlays Bank by Standard Chartered Bank was completed on 31st July 2000. Chittagong. Kawrna No. the Bank is now operating its ATM (Automatic Teller Machine) service from 23 individual locations in Dhaka. Besides. Khulna.STANDARD CHARTERED BANK IN BANGLASESH Standard Chartered Bank started its operation in Bangladesh back in 1948. and Narayangong. Bogra. In Bangladesh Standard Chartered Bank is operating 17 offices in 6(six) divisional cities and towns including Dhaka. The transaction represents a major for both the sides. Khulna. Bogra. Station 3 Road Khulna Sylhet 1 1 More over. Banani. and Narayangong. Chittagong. bonding and remittance business as well as market ad business intelligence. of Branches/Cas h office (s) Dhanmondi. Hotel Sheraton. Sylhet.

Because of the possibility of gas and oil exploration.e. it is observable that the account holders are not usually present at the Bank for Cash Transaction. the influxes of people from different overseas countries are increasing day by day. The area Agrabad has grown over the years to a prime commercial location with the development of the port and the tr5ade based business. CUSTOMERS: The customers of Standard Chartered Chittagong main comprises mainly of professionals. businessmen who are involved in trading. 55% are businessmen. These changes and improvements of the overall economic and social condition have significantly changed the mindset of the general . More than 60% of the businessmen are involved in trading or other related business. Besides. However. The average age of the customers of Standard Chartered Chittagong main ranges from 30 to 45 years. Awareness among the people foreign Banks is increasing gradually and people are becoming more confident in dealing with reputed foreign Banks. it also caters to the needs of people who are operating different company accounts. Among the service holders a significant portion are working in different corporate organization. these customers. Main) is located at Agrabad. manufacturing and service oriented entrepreneurs and limited extent of housewives.STANDARD CHARTERED BANK (CHITTAGONG MAIN) IN CHITTAGONG AN OVERVIEW LOCATION: Standard Chartered (Ctg. the commercial location of Chittagong. Among the professionals maintaining accounts in this branch. service holders. LOCATION CONDITION: The economic condition of the area is developing rapidly. 45% are service holders where as the rest i.

. Autonomous Corporation and societies club etc. Three types of accounts such as: -For SB account -For CD account -For term Deposit. holder. in case of a minor. 3. Name of Accounts are• • • • • • • • • • Savings account Extra Value Savings Scheme Current deposit account STD (Short Term Deposit Account) Limited Company. PART –B: Account Opening A/c Opening To open an account the party has to duly fill up A/c opening form. Party has to submit two copy passport size photographs. Another form is used for limited Company.S. Autonomous Corporation account Three stage savings scheme Marriage savings Scheme Millionaire Savings Scheme Children Education Scheme Rainy Day Savings Scheme For Different type of account the following papers are required: Savings Account: 1. One form is used to open all kinds of savings accounts. All kinds of account require two photograph of party except three stages savings scheme. card and then has to submit the necessary particulars according to account nature. 2. Yet another for current account for individual joint or proprietorship the opening form of partnership is a bite different. Partnership deed is needed which is attested by notary public. which will ultimately help to improve the entire scenario in case of foreign Banks.people. S. Partnership Account: 1. Duly filled up account opening form with introduction from an existing account Nominee with photo.

4. A/C • • • • • True certified copy of memorandum and articles of association. Collecting current deposit a/c opening form from the bank counter. In case of decease of any partner. 2.2. Full signature and specimen signature in the application form as well as in the SS (specimen signature) card. . Limited Company/ Semi Govt. 5. Individually every partner has to sign in the partnership letter formatted by the bank. Enclosing photographs attested by introducer. In addition one needs to enclose:Photocopy of trade license given by the City corporation/Pourashava. Checking of the required information and introducer a/c no. Who will operate the account must be written in the partnership deed. Autonomous Corp. A notary’s certificate of partnership deed is also required.] Filling up the form with required information. Each page of partnership deed is to be attested by notary public. 3. Proprietorship Accounts The common procedure of current deposit account opening is followed. 3. Board resolution True certified copy of certificate of incorporation. his family member or a nominated person can operate the account if there is any instruction if the account. Current Account 1. 6. 6. 5. by the authorized officer. . In case of public limited company certificate of commencement is required. Attested Signature by the board of directors. Minimum required cash deposited to the cash counter.Sign and seal of proprietor in the application form as well as in the SS (Specimen Signature) card to be given properly. 4.

5.The A/C opening procedure is same as C/D A/C opening. Cheque Book Issuance: The chequebook is a security stationary used for transactions by the account holders. usually one beside the A/C. (2) A/C no is mentioned on each leaf of the new chequebook.STD A/C .Minimum 7 days notice is needed in earlier cases but.-three leaves before the end of the 10leaf chequebook).5% interest is given against this deposit A/C . (b) The serial number of the leaves (c) Signature of the applicant. (b) For new chequebook when the slip is located nearly at the end of the old one (e. no and the other beside the cheque series no. Chequebook is issued through a requisition form/slip which acts as an application from the respective A/C holder. . it has now become a practice to withdraw money by the clients with immediate prior written notice or Telephone contact. . The requisition form contains (a) The date of issuing. Procedure (1) Authorized officer verifies the applicant’s signature. The requisition slip comes into action at two stages (a) At the time of account opening.g. (3) Two officer’s initials are put on every leaf.

C. & O.Serial no. Procedure (1) The A/C holder submits a written application for a duplicate chequebook. (3) Payment is stopped on the missing serials of the chequebook after the serials of the missing leaves are matched on the register. Both S/B and C/D A/C cheque books are issued through this procedure though the particulars are recorded on different registers.A/C no. which rouses the need for a duplicate cheque book. Again S/B A/C usually needs ten or twenty-five leaf cheque books while due to its frequent nature of transaction. The A/C holder signs the register before the new chequebook is issued to his name. Of cheque leaves are written. I .C. . Issuing duplicate cheque book Due to various reasons. (4) With the permission of the In-charge. I. where the.B. C/D A/C usually requires more leavesfifty or hundred leaf cheque books. a duplicate chequebook is issued whose serial numbers are not the same as that of the previous one. (2) Inquiry is made whether any unused leaf of the chequebook was signed.A/C holder’s name .(4) A register is maintained for this purpose. a cheque book may be damaged or missing.B.

If the other branch collects the cheque of our branch. Verifying the signature. Which the IBCA is issued as under: Party A/C Dr. Basically OBC is required when the cheque is not of a same clearinghouse. we have to send cheques to other district for collection. Steps required for collecting outward bills are as follows: 1) Register entry of the cheque. Responding the IBCA the collecting branch debits the payee branch and credits the parties account. Collecting branch send the cheque to us. Receiving the cheque. Out ward Bills for Collecting (OBC) Besides clearing house and transfer delivery. . branch authority examines whether there is sufficient money available or not in the account. This is the procedure for outward transfer delivery. Gen. the payee branch issues an IBCA in favor of the collecting branch. If the cheque is honored the branch authority issues an IBCA debiting the party account in favor of the collecting branch. then it is called inward transfer delivery. If they honor the cheque of the respective branch. without sending it to principal office. A/c Collecting Branch Cr. A credit voucher is prepared against. branch authority sends it for collection to the payee branch.Inward & Outward Transfer Delivery Transfer delivery takes place when the cheque of one branch of the SCB is presented to another branch for collection.

As such given in the OBC register and endorsing (Payee’s account will be credited after realization) the cheque with the signature. Outward bills for collection A/C Outward Bills lodge Cr. After collecting the amount of cheque the originating branch will send an IBCA. 3) Writing two copies of OBC forwarding letter.D is sent in U response to the OBC with the commission & postage charge of the D. of authorized officer. Outward bills for collection Cr.D deducted from the amount of the cheque. Responding the IBCA. The D. The contra voucher for OBC collection is as such: Outward Bills lodged Dr. Reverse contra voucher is prepared for positing. The amount is credited to party’s NC though party credit voucher. Dr.D before sending it for collection through clearing. If the cheque is drawn on a bank other than ours. of which one copy will be Sent to the collecting branch along with the cheque and another will beI kept in the OBC outstanding file. .2) Stamping OBC seal on the face of the cheque and writing the OBC No.D is issued in favor of our branch. therefore the endorsement “Received Payment” is put on the reverse of the D. collecting branch debits the originating branch and credits the party account through the pay-in-slip that is kept with the forwarding letter of OBC. a D.

5. is prepared favoring the instrument-sending branch. I /A Comm.C.B. NC Respective Branch” (O. 6. After collection of amount/proceeds an I. Accounting procedure will be as such: Party A/C Dr. With the corresponding O. . Entry is passed to the register of I. After posting commission and postage charge in the register along with the IBCA No.B.A. In the reverse side of the instrument “Our Branch endorsement confirmed” endorsement with the authorized officer’s signature is given.B. I/Postage on OBC Cr.Besides this. on OBC Cr.C.The branch through dispatch receives instrument with a forwarding letter. A simple credit voucher is prepared under the title: “SCB Gen. a signature of the authorized office is taken and after signing the vouchers by the officers these are posted in computer. issuing branch) with the following date in that voucher O.B. 3. 2.C. Inward Bills for Collection (IBC) . The instrument is then sent for collection through the clearinghouse according to the procedure.B. commission and postage will be charged to the party for collection of the cheque.C no.C no is recorded. 4.

C is sent to the O.Authorized officer verifies the party signature on application.At first. The following are subsidiary works. balance position of the account is taken from the computer.C issuing branch.In the application.B.Then cheque series no are checked with the record. the party submits an application to the branch manager for transferring his account. Dr. SCB General A/C. (New branch) Cr.B. .In this way the proceeds of honored O. .Bank debits party account to make the balance nit. . .Unused cheque leaves are destroyed in front of the party. done at the OBC desk ACCOUNT TRANSFER: Account transfer implies the transfer of account of a party from one branch to another of the same bank. .Party surrenders his/her chequebook with unused cheque leaves. Then the following vouchers are prepared: Party A/C. Income A/C transfer charge Cr. party mentions the branch name to which party intends to transfer his/her account.An inquiry is made in every department of the branch whether the party is maintaining a loan account or not. Steps of account transfer are as follows . . . . .If everything is all right.

of A/C is deducted by one in the account opening register. Card. Bank just debits the account. photocopy of account opening form and S. FUND TRANSFER Fund transfer implies transfer of fund from one account to another in the same branch. .A transferring note has to be taken in the A/C opening register.- An IBCA is prepared and sent to the new branch with a forwarding letter. card are marked “Transferred from X Branch to Y branch”. Account opening form and S.A/C opening form. which would be transferred and credits the account that would get the deposit.S. Party (Payee) Cr. S. Party (Drawer) account. Dr. . Two vouchers are prepared in this regard. closing are as follows: . It is a simple process. . balance statement. .Party account is marked “Transferred” in the account opening register.S. . card and balance statements are sent to new branch.Transferring branch keeps application.No. CLOSING OF DIFFERENT TYPES OF ACCOUNTS: SB A/C Step of SB A/C.S.

. will be checked with the record. card and account opening form will be marked “Closed”. . balance position of the account has to be taken from the computer.At first.No. . Closing of schemes . Income A/C charges on account closing Cr.Party account is to be marked “Closed” in the account opening register. . A closing note has to be taken in the account opening register. CD/AC Same as savings A/C except charging the interest. Cr. of account will be deducted by one in the account opening register.An inquiry is to be made in every department of the branch whether the party is maintaining a loan account or not. Dr. S.Cheque leaf serial no. If every thing is all right. Bills payable pay slips issued.Party will surrender his chequebook with unused cheque leaves.S. the party will submit an application to the branch manager for closing his/her account. Then the following vouchers are to be prepared Party A/C.Authorized officer will verify the party’s signature on application.Unused cheque leaves are to destroy in front of party. Bank will debit party account to make the balance nil. Two authorized officer will approve voucher. ..

S rate of 11%] The vouchers a) Adjusting A/C: Interest. If anyone chooses to close the A/C after 6 month but before 4 years. 7 years and 10 years. the accounting procedure is as follows: 1. Party submits application along with his/her pay-in-slip book. interest will be given at Savings rate instead of C.E.S (excess interest) Cr.S A/C is closed before 6 months. CESS A/C closing: Before maturity There are three terms of maturity for C.S. A/C Balance up to the date=================== -( Amount of installation given by party each month Interest @ 11 % [the closing is premature. Balance up to previous month +( Interest Provision for the month (Adj.S A/C Dr. SCB Savings Scheme etc.Different schemes are at work or were maintained in the branch such as Three Stage Saving Scheme. Payable on C. .E.S. Clients may choose to close this A/C before or after maturity.S. C. Expenditure A/C: Interest.S.S (provision for current month) -Dr. Paid on C. A/C Cr.S. b) C.S. No interest in given if a C.S. Income A/C: closing charge Cr.S.S A/Cs —4 years.

Deceased A/C. . . (I.Gorosthan Certificate.One nominee on behalf of all nominees and successors submit an application to the bank mentioning the death of his/her relative.The authorized nominee then has to submit the following documents.All kinds of transactions are made stopped by the bank then. The Bank follows the following procedures to make payment . . . Then the Bank collects balance conformation sheet from the computer department internally duly signed by authorized . mentioning the proportionate amount to be distributed to each of the successors & nominees of deceased A/C holder from various accounts of various Banks. Bills payable: Pay slip issued cr. .Death certificate of the account holder . various Bank balance).Submission of an application reporting the death of A/C holder by the nominee on behalf of all nominees and successors to with draw the balance amount maintained with the Bank. While working at the desk I had an opportunity to see the closing of a deceased account.Other liabilities: 10% Source tax Cr. Word commissioner identification certificate with photographs.e.One copy of successor certificate given by the district Judge.

• Pay order • SDR • Treasury Challan etc.O. Instruments are deposited by various customers of different A/C Of Principal Office (P. card. (Law dept. After the payment of the proceeds “Deceased A/C closed” is marked both on the A/C opening form and on the S. • DD.) mentioning the deceased account holder’s particulars to make arrangement of payment of the account. After conformation a forwarding letter is sent to the H. (CAD) sends an approval letter after judgment of the documents with the forwarding. Inward clearing.) for collection through writing in . The H. S. At the time of final settlement of disbursement of the fund of the A/C after receiving the confirmation letter from H.O. Outward clearing • Cheques. Account opening form with SS card collected by the authorized officer internally.O.Officer of the branch.O. one indemnity bond on a non-judicial stamp (150/-) is signed by the authorized nominee and by other nominees and successors. CLEARING Clearing activities are of two types: (I) (ii) outward clearing.

Immediate after receiving the instruments special crossing/recipient Branch. and different instruments sent by other branches received by them from their own customers for collection inside the clearing zone are also collected by P. Except these different instruments received the P. As to provide customer service Bank acts as an intermediary to collect proceeds of instruments through the Bangladesh Bank clearing house. IBC of P.O. In the first house of the next day. The clearing officer then keeps the instruments in his custody. Statements of Bank wise delivery details and Branch wise delivery details/cheque totals are prepared.) and F./originating branch. Principal Office sends the instruments to the issuing branch. . Or instruments received from Head Office (H. the clearing officer receive the instruments from the customer by giving “Received” seal and initials On the foil of the pay-inSlips. of P. Cheque and other instruments’ detailed information are recorded in the outward clearing register (date validation sheet _ house). sent by various branches of the SCB for collection through their OBC which are out side the clearing zone. Of various Banks for collection through the clearing house. through clearing house. from HO. Exchange Dept. Crossing is given on the instrument. “Clearing” seal with the next date is given on both the instruments and pay-in-slips.O. It is to be mentioned here that collected instruments are of other than the SCB. When the cheque or other instruments come for collection.the pay-slips and credit vouchers in case of IBC. Proper endorsement and the authorized officer’s signature are given on the back side of the instruments.O.O.O.

A/C Dr. After receiving the inward clearing instruments. The officer then checks the balance of respective NC in the computer whether sufficient balance available or not to honor the instrument. .O. SCB General NC: P. Party Dr. Accounting procedure of P. for the total honored fig. One representative officer of the SCB collects the instruments from other Banks through clearing house. Our inward clearing instruments are the outward clearing instruments of other Banks.O. the instruments issuing branch/originating branch makes entry in the inward clearing register. as under 1.O Cr. an IBCA is prepared fig.Inward clearing Under this mechanism Principal Office collects the cheque and instruments issued by different branches and P. The authorized officer of the branch then examines the instruments. of the SCB for collection. The instrument are then sorted out and sent to the respective issuing branches after proper recording to the register. (Instrument it self) 2. After the instruments have been passed.O. Respective Branch. Accounting procedure of different Branch is as under (For honored instrument) 1. with return memo. The dishonored instruments are returned to the P.O. P.

When there is no payees name in the cheque but only instruction that pays to self.O.When the name of the payee is given on the cheque and the drawee Bank is in that clearing house then this is the appropriate endorsement.(Responded IBCA sent by different (Branch for honored fig. “Payee’s A/C credited for the SCB” . 1. 2. The SCB. 3. or SCB P. of instruments of P. SPL crossing is given by the Branch. and other Branches are sent to second clearinghouse of B. and sent to H.The dishonored instruments of P.B with Bank wise delivery cheque totals to return the instruments to the respective collecting banks for final settlement of transactions among the various Banks for that day. Endorsement for clearing.O. “Received payment for the SCB” . In this way clearing function occurred. SCB General NC: HO Cr.O. Then the following endorsement is usually put on the reverse side of the instruments. which will be deposited in the customers A/C. then this is the appropriate endorsement. “Payee’s A/C will be credited on realization for the SCB” .O. H.. and other branches inside the clearing zone an IBCA is prepared for.O.O. The dishonored fig. of P. you. While receiving any kind of cheques or instruments. cash. (For honored fig of instruments Of P.O. is also recorded in the inward clearing reg.) 2. & other branch) For total honored fig.

In Case of IBC of this branch for collection. purchaser thereof. Since all NCBs. DEPARTMENT: SANCHAYAPATRA: Sanchaya Patra is the instrument against which both institutional and non institutional customers/people make investment of their idle money.P).The collecting branch gives when an instrument is received as IBC sent by other branch of the Bank for Collection then this endorsement. organizations (selected) performs the activities of selling S. to provide public service.e. Our branch endorsement confirmed for the SCB .When the drawee Bank is not in that clearing House. thereof to the S.P. purchaser as per . and payment of interest.P.P for deposit mobilization from the public. disbursement of Interest payable to the S. It is the system of collecting idle money from people/institutions whose money will be considered to be of no use for a minimum period time (i. 1 year or above). It is a mode of investment against which the customers in terms of Bank or/and the people who have no legal relationship with the Bank as customer make risk free investment though the instruments (S.B. The “Jatiya Sanchaya Bureau” is the only authorized organization of the Bangladesh Govt. 4. Automous and private Banks are the agents of B. Bangladesh Bank is the only authorized dealer to arrange the mechanism/collect the sales proceeds of S.P.. to print out the instrument and arrange to collect the sales proceeds of S. So NCBs. This endorsement is given by the OBC sending Branch. in side clearing house.P. Autonomous and private Bank and some govt.

(iii) Via other branch. Of the same bank. “Jatiya Sanchaya Bureau” utilizes the collected proceeds in the best possible way that keeps risk at the lowest level and earns more profit agt. (ii) a. Issuing Procedure 1. If a customers make payment by cheque of the same branch . Preparation of Vouchers for the above payment procedure: (i) If a customer makes payment in cash A customer makes payment in cash through cash counter. 2.P. Cash dept. Sundry deposit A/C. gives “Cash received” seal on the credit voucher. which Interest is paid to the customer of S. Duly filled up application form submitted by the customers (the form provided by the Bank).B. Autonomous and private Banks receive commission through B. S. & payment of Interest thereof are out of General Banking activities. Customers may make payment to purchase SP in the following ways (i) In cash (ii) By cheque through clearing or transfer. Against these services NCB5..P issued Cr.the instructions of Bangladesh Bank (B. Cash (if self) Dr.B).P. from “Jatiya Sanchaya Bureau”. The process of selling S. but a specific section under General Banking Department does these activities.

The submitted cheque is considered as debit voucher by duly passing it by the Authorized officer of the branch. Party A/C (Cheque if self) Dr. Sundry deposit A/C S.P. issued Cr.

(ii) b. If a customer makes payment by cheque of the other bank - Received cheque is deposited to the customer’s A/C in the branch with the pay-in-slip. - Proceeds are collected through clearing house /O.B.C mechanism. - The customer then draws a cheque on his/her A/C agt. S.P. purchase purpose. - This cheque is then considered as debit voucher by duly passing it by the authorized Officer of the Branch. (iii) If a customer maintains an A/C with other branch, of the same bank and intends to purchase S.P by that branch - The customer can make payment in cash or issues a cheque on his/her A/C maintaining with that branch. - After passing if by the A. Officers of that branch. An IBCA is prepared And sent to the S.P. issuing branch. (P.O.) The application form (filled up) of the customer after

verification of his/her sign thereby an A. Officer, with a forwarding letter mentioning A/C holders same, A/C No. S.P. Name & value therein sent to the S.P. issuing branch. With the IBCA.

S.P. issuing branch. Then responds the IBCA, which in turn becomes a debit voucher then. Dr. Sundry Deposit A/C S. P. issued Cr. SCB Gen. A/C. (respective branch. IBCA issuing branch.)

3. Then entry is passed to the S.P. issuing Register. 4. Instruments are prepared and issued to the customer. 5. A.S.P. Sales statement with a forwarding letter sent to B.B. within 72 hours of sales, stating therein to collect the proceeds from S.P. Selling Bank, from the A/C of the Bank (HO) maintained with B.B. One photocopy of the statement with a forwarding Letter is sent to the CAD of HO of S.P. issuing Branch. 7. Agt. this statement, B.B. sends a debit advice to S.P. issuing branch. After collection of proceeds from the A/C of H. 0. > S.P. issuing branch. Then makes reconciliation with the

advice and S.P. selling statement & forwarding letter. > After confirmed Ok, one photocopy of debit advice B.B. is sent to CAD of HO.CAD of HO then prepares and sends an IBDA to S.P. issuing branch. for the proceeds to collect on behalf of B.B. Voucher preparation by HO 1. 2. SCB Gen A/c S.P. issuing branch Dr. Bangladesh Bank Cr.

After receiving IBDA, S.P. issuing Branch. Makes the following treatment. 1. 2. Sundry deposit A/C S.P. issued Dr. SCB Gen A/C H.O Cr.

(Responded IBDA) This is how the complete process of sales and reimbursement of sales proceeds occurs. Encashment procedure of Inset, of Interest or and F.V. of S.P (A) In order to encash Instt. of Interest or and F.V. of S.P. customers bring coupons or and S.P. instrument directly to the S.P. issuing Bank. 1. 2. -Sus. A/C Encashment of F.V/lnt Dr. —Bills payable A/C pay Slip issued Cr.

(With net payable amount after deduction). Or -Customer’s A/C Cr.

(With net payable amount after deduction.) 3. —Other Liabilities A/C S. tax Cr.

(B) When other branch. of the Bank sends the Int. coupon/and S.P. instrument of their own customer with a hand written application from the customer and a forwarding letter by the branch. The following steps are done by the S.P. issuing Branch. 1. 2. Sus. A/C Encashment FV/lnt. Dr. Other Liabilities A/C Source Tax Cr.

(if applicable)


SCB Gen A/C respective branch Cr. is

(Net payable amount after deduction of S. Tax if it applicable).

- The net payable amount is then sent by preparing an IBCA fvg. That branch. Reimbursement procedure of Interest /and F.V. of S.P. paid to the customer from B.B - After encashment of lnt./and F.V. of S.P. a statement is sent to B.B. with a forwarding letter. - Against this statement B.B. sends a credit advice to the branch. The S.P. issuing branch. Then makes reconciliation with the Cr. advice of B.B. and encashment statement sent earlier to B.B. Found every thing Ok and marking “SCB Ok” on the Cr. advice of B.B., S.P. issuing branch. (P.O.) then sends one photo copy of the advice to the CAD of HO. Then CAD of HO prepares the following vouchers: 1. Bangladesh Bank Dr.

2. SCB Gen A/C S.P. issuing branch Cr. An IBCA fvg. S.P. issuing branch, is then prepared and sent to the branch. After receiving the IBCA from Ho, S.P. issuing branch. Then responds the IBCA. The Responded IBCA then becomes the debit voucher of the branch. Treatment is as under SCBGen.AICHO Dr. (Responded IBCA)

Generally. (SICURITY DEPOSIT RECEIPT) 4.2.R.P worth Tk.D.D. P. (DEMAND DRAFT) 5. 00.T. on this behalf completed. T.D. In this way the process of encashment of lnt. 0. Remittance refers to “Transfer of Funds”. S. Cash Remittance.000/Encashment: Tk. 1. (PAY SLIP) 2.S. (PAY ORDER) 3.B. Rate of Commission Sales: Tk. F. of S. This section also does transfer of funds from one A/C to another A/C and from one branch to other branch of the Bank or to other Banks.25 per instrument. D. Remittance is a very important section of General Banking Dept.V.R. (TELEGRAPHIC TRANSFER) 6. 2. Fund Remittance./and F.P. Remittances are of two types: 1. In general. (FIXED DEPOSIT RECEIPT) Etc is done through this section. All kinds of issue and payment of 1. . P.000/.O. A/C Encashment FV/lnt Cr. the remittance section of the General Banking Department does fund remittance. and reimbursement of the proceeds from B. 1. Suspense.per sales of S.

.The purchaser’s name and address. bank and branch name of the beneficiary. 2.The amount.Name and A/C no. .): This is an instrument widely used by the customers for payment to a beneficiary for many different reasons. The instrument After the customer makes the payment (through cheque or cash) along with commission and after the payment is duly . Issuance: The application form The customer has to apply through a duly filled up form after the banks chosen format where necessary information are mentioned. Pay Order (P.O.Payment The PS instrument ultimately returns to the issuing branch of the bank for payment. The payee must affix a revenue stamp (signed or sealed by individual or company respectively) on the instrument before submitting it. . Though the process of clearing. it arrives at the issuing branch of the bank. The payee may submit the pay Slip to any bank. The revenue stamp is checked and the date of payment is mentioned on the instrument and then the beneficiary account is credited accordingly.

10.00 lac/For P.O. All the parts contain the P0 number and date. Payment .5. the bank gets a commission according to the rate mentioned below: For P. • The second part is for the purchaser.. an instrument containing three parts is issued.above : : : : Tk. • The third part is for beneficiary. 1/.O.1. 50/Tk. However the first and second part contains the purchaser’s & beneficiary’s name and the amount but in the third part the purchaser’s name is not mentioned. • The first part is for the bank. 50000/. The amount of the P. the purchaser receives the last two parts of the instrument which are duly authorized by the bank officials before the hand over. is recorded under the title of account “Bills payable pay order issued.acknowledged by the bank. 100/- A cost memo showing the amount of commission is issued for the purchaser.O between Tk.O between Tk.000/For P. between Tk.00 lac/For P. 100001/.O between Tk. 25/Tk. 10001/.” The commission goes under” Commission on remittance”. 10/Tk.O. Commission For every P. After signing on the reverse side of the counterfoil.

O.O. b. 15/3. instrument also ultimately returns to the issuing branch for payment.The beneficiary then submits this part to any bank and through the process of clearing payment is confirmed. where in the second part the purchaser name is is mentioned.D. The difference lies in the actual instrument which has two parts: for the bank and the beneficiary. has to submit an application along with the instrument with his sign on the reverse side and a cancellation charge of Tk.R) This instrument has the same function as the P.O. Issuance The same application form for the P.O.D. is valid for S. may be cancelled in two waysa.R.O. Cancellation A P. where the purchaser who has not given it to the beneficiary at all. the P. The beneficiary may refund it (with “released” sign on the reverse side) in which case no cancellation charge in required. Payment .S.Like the P. Security deposit receipt (S. Otherwise. except that it is considered as deposit by the bank.The third part of the instrument is given to the beneficiary by the purchaser. Again it may be generated through crediting “Sundry deposit A/C: SDR issued” through simple credit voucher. Commission The rate of commission is same as P.

number . 4.D issued are recorded.In whose favor it is being drawn . a branchwise issuing serial number is put beside the printed D. no of the instrument. an instrument is prepared with.Date . Demand Draft (D.Amount . The test number test number. The Register An issuing register is maintained where the particulars of the D.): The application form .O.D.Which branch it is drawn on According to the branch the D.Drawn on which branch.D is being drawn on.Payment procedure is again same as that of P. is given for the D.D. contains the following information: .D by two authorized officers. which the customers must fill up properly.D.Amount . But the beneficiary has to affix a revenue stamp on the reverse side of the instrument (signed or sealed) before submitting it. This is the controlling number.D. A .Name and address of applicant . having two parts. The instrument After the payment by the customer (though cheque or cash) is duly acknowledged by the bank.

test no. is less than Tk. A minimum commission of Tk.or Tk. The responding branch will transfer the amount to the party A/C only if. 40! . payable proceeds are sent by post the payee branch by preparing an IBCA favoring the payee branch. 20. then no testNumber is needed) This number is very much an important secret.As telex charge but if the Amount for the D.D. The amount. When the test no. The other part contains a compendium of • Branch code • Day code • Date code • Currency code • Amount code (If the amount of D.000/.000/-. is below Tk. is agreed. Advice The D.A no of the two authorized officers is mentioned there.serial number starts the test message.(up to 19. Charges & Commission The purchaser has to pay a fixed amount of Tk.D.999!-) no telex charge is needed. the P. 1/-per Tk. 20. A cash memo showing the amount of charges & commissions is issued for the purchaser. The commission is recorded under . 25/.D.D. 1000/has to be paid as commission for the purchase of each D.

D. Then the Dr. Cancellation The branch receives application from the customer along with the instrument. Cr. Payable Dr. a. Cr. Since the advice has been issued to the responding branch.D.D.) Suspense A/C: D.D. The advice from the issuing branch has not yet reached the responding Branch. Party A/C.D.Two kinds of situation may arise in case of payment of D. Dr. paid without advice Party A/C. SCB General A/C (issuing br. After advice reaches the responding branch. If advice is received before payment of proceeds to the customer: SCB General A/C (issuing branch. That the instrument is in the possession of the issuing branch. Cr. if the purchaser wants to cancel the D. the issuing branch has to inform the receiving branch.D). b. Bills Payable: D.D.the title of account “I/A Commission on remittance”.) Bill Payable: D.D. Payment (Inward D.A. In that case the D. Paid W.D. Payable Cr. is paid from the suspense A/C. Dr. Suspense A/C: D. (Responded IBCA) . A receiving register records all the particulars of a received D.

the bank officials duly authorize the form. 30/. before the advice is returned. The payee branch is requested to send an IBCA to refund the amount debited from the suspense A/C. the customer must maintain an account with the branch. Commission & charges. -Dr. Suspense A/C: D. no cancellation charge is required. Cr. Dr.D.D.has to be paid by the purchaser. Again if the payee releases the D. Suspense A/C. address. In this case. Responded IBCA from payee branch. Cr. cancelled Party A/C. Otherwise a cancellation charge of Tk. phone number.T) This is another profoundly used means for fund transfer between countries. Society For World Interbank Financial Transactions (T. After the payment. however. Amount Name of applicant. . The application form: The first step is the submission of a duly filled up form (by the purchaser) Containing•Name of the payee A/C and address Place. may be paid from the suspense A/C.

confirmation is kept as the office copy.The register Entry is passed to the SWIFT register. T.T) After receiving branch. are as follows :SCB General NC-issuing branch. Controlling and test number A responding branch-wise T.T. which records all particulars an outgoing T. which bears the same importance.T. ..T. Confirmation The T. no. The title of account that records the transaction for the receiving branch. T. confirmation is sent to the payee branch (by post) mentioning T. Dr. number. date. T. Test no. the amount. information. D.the test number. agrees with the T.T. except that the telex charge has to be paid at all times.T number is put on the application form as well as a test number.T.D. Conveying the message The T. amount.T.. One copy of the T. test number only then it credits the party NC accordingly. The authorized officers duly sign this. beneficiary’s name and A/C no. the power of attorney number of the authorized officers are conveyed over phone or through telex message by the authorized officer. Charges & Commission The rate and procedure of charges & commission are same as that of D. Payment: (Inward T. T.. like that of the D.

1 year and so on.R): FDR is a contact based deposit where the amount is deposited for a fixed period of time: I month. 6 months. 6. The only difference is when the actual IBCA reaches the branch it is not responded (since it has already been responded on the day it was received over phone) but marked as “Vouched as on . .T. Cr. IBCA through T. Party NC Cr.Cr.T. Issuance . IBCA the responding branch is prepared and the IBCA no. mainly for quick fund transfer.. date and test is conveyed over phone or telex.Fixed deposit Receipt (F. SCB General NC (responding branch) . Issuance of IBCA: Party NC/cash/cheque Dr. register with all particulars. .Bills Payable: T.D. Payable Dr.T Inter Branch Credit advice are also sent and received by telegraphic transfer.T. Payable Bills Payable: T. For each period of time a certain rate of interest (annual) is allocated.T. The accounting procedure for the responding branch It is the same as that of T. 3 months. Entry is passed to the inward (receiving) T.“ This procedure is followed to save time and offer better client service.

the date of maturity.5% 3 month -8% 6 month 8. If encashed before it. Instrument After the application is authorized properly an instrument is issued where the date of issuing. if encashed after 3 months.Application the customer has to fill up the FDR application form to open an FDR A/C.25% Conditions of Encashment Two different situation may arise : on Maturity and before maturity. Register A register is maintained for the issuance of FDR where particulars are recorder. Rate of interest I month -7. will get no interest. he will get . the name or names of the party are mentioned.5% 9% 9. the customer will get interest at savings rate. -Maturity in 1 year. the customer If encashed before it. -Maturity in 3 months. The procedure is same as that of C/A or SIB A/C opening. . The customer may collect the interest After the completion of every 6 months.Maturity in 6 months.5% 1 year2 year3 year8.

excise duty is deducted from the whole amount of the F. Source tax At every withdrawal. Again the customer may opt to collect Interest of every six month. -Maturity in 3 year. the FDR is automatically renewed for the same period of time at the same rate. A daily maturity sheet accounts for all maturity and six months interest payment for FDR A/C. If encashed before 6 months party will get no Interest If encashed after that 6 month mt @ SB/FDR rate is given. No interest Will be paid for fraction period.D. . These are also accounted on monthly basis. 10% source tax if deducted the interest. he will get Interest at the rate of the period the Amount remained deposited. then at the time of encashment. -Maturity in 2 year.R. whichever is lower. Excise duty At any stage of transaction if the total amount (Principal + Interest) touches the range of excise duty cut.Interest at SB rate. if enchased Between 1 year to maturity. usually at the end of the year. the previous. Or FDR rate Whichever is lower. Principal amount along with the interest now considered as the new principle amount for the renewed FDR. If the customer fails to encash on maturity..

Then the excess amount (on deduction of 10% source tax) will be deducted from party A/C. A/C Dr. For deduction of excise duty F.00.00 crore Tk.001/ 1. . (The interest for the complete Calendar months is recorded under Adjusting A/C and that of the fraction Calendar month remains under the expenditure A/C. Though actually the expenditure A/C.FDR value Ex.00 lac Tk.R. duty FDR Value 10.000/-250 5.R.00.R.00. Instrument (F.D. 10% Tax (deducted at source) Cr.001/.D.D. Dr. A/C Cr. F.D.001/. 250 1.R. Expenditure A/C: Interest Paid on F. 120 10. Dr.001/-5.R.00.000/-I .above -5000 Payment of interest At first interest will be credited to FDR A/C.D. -500 1. is debited and the adjusting A/C is credited at the completion of every month.) For deduction of 10% tax on interest F.D.00.00.F. Other liabilities A/C. The title of account is as follows:Adjusting A/C: Interest Payable on F.) Dr.00 crore Tk. Encashment of F.R.D. A/C Dr.00.10. Other liabilities: excise duty on deposit Cr.

non-judicial stamp. deposited to F.R. A/C Dr.D. After the confirmation reaches the Head office that no payment has been made for the lost instrument by any of the branch. after being notified by the purchaser of the loss/damage. 150/. duplicate may be issued in its place.(For Principal amount) F.O. Two witnesses also have to sign this . it gives permission to issue duplicate. informs the responding branch and the Head Office about the particulars of the lost instrument and request them to stop payment of that instrument. (Total Int. declaring that he/she will be liable for any damage due to the lost instrument. Head office then issues a circular to each branch for stopping payment of that particular instrument. on a Tk.D. 100/and sign an indemnity Bond. The purchaser has to pay duplicate issuing charge of 1k.S.R. A/C after Deduction of Source Tax and excise duty) Bills Payable P. issued Cr. (Total amount payable to customer) Or Party A/C Cr. INSTRUMENT LOST: DUPLICATE ISSUED If any of the above-mentioned instruments gets lost or damaged. • Every Instrument issued by the remittance section is crossed “NC payee only”. /P. The process is as follows The issuing branches.

the cheque is sent to the cash counter for payment. The Duplicate remains almost the same as the previous instrument. The duplicate issued will be marked “Duplicate issued in lieu of original D.document. No. The cash Incharge then signs and endorses the bill. Registers that are maintained with the cash department are: 1. Cancellation of the cheque is necessary for the safety measure.A) holder officers’ cancellation is required. 2. the procedure is as such: at first the customer presents his cheque to computer counter and the computer operator then check the balance. Cash Payment Register 3. One part of the bill is given to the customer. For example. I saw how the bills of Grameen Phone are received. After receiving the money from the customer. D. At the time of payment. the controlling number of the duplicate. Then I observed how to make payment of cheque. If the amount of the cheque is more than five thousand then two power of Attorney (P. Cash Receive Register. There are three parts in a bill. D. one part is kept to the bank and the other part in sent to the Grameen Phone. Cash Balance Book. the cash officer keeps the denomination of the . Vault Register 4.D. there the cash officer takes a signature on the reverse of the cheque and then makes payment to the customer. After going through the registers. send it to the Cash In-charge for checking of specimen signature. the cash officer transfers the bill receipt to the cash In-charge. remains the same though the printed serial on the block is changed. After passing.

+ Cash Remittance Inward In Simple Credit Voucher SCB General P. At the end of Banking hour closing of cash is done. This acts as the responding of IBCA sent by Head office. Cash Receive: Cash in received for the following there ways: 1.O and cash received seal is put. BCD and PSP). •• Lottery tickets are also sold by branch and thus the branch also receives cash. DD. 3. (Writing in the Vault register according to the denomination of note and maintaining the Vault Register. . Different types of Bills like T & T. v’ Preparation of the cash position. Grameen Phone. and STD etc. By the instruction of Head office. 2. In this case cash is received either in Pay in Slip or in Simple Credit Voucher (Only for FDR. SDR and P0 etc are received in their prescribed application form. Different type’s remittance like TT. It can be done by two ways: 1. CD.. Different steps of cash closing are as follows: Finalization of the daily transaction in (a) Cash Receive registers (b) Cash Payment register: v’ Cash balancing. Receipts of different accounts like paid to the customer. a new A/C can be opened with the organization’s name and thus deposit in sale Proceeds goes to the opened A/C.

Pay slip. If the applicant seems to be eligible. Payment: Cash is paid in the counter by the following three ways: 1. Cheque of different types. A different type of Bank’s expenses that is made to Bank’s officials or staffs is made through cash debit voucher. These channels are Share Distribution (Branches). 2.2. Consumer Loans Three channels usually source the loan proposal. •. Bank’s expenses and other payments other than cheques (such as NC is closed but the client is to be paid). Cash Debit Voucher and 3. Direct Sales and Priority Banking. which is paid to outsiders. is made through pay slip. the sales proceeds can be kept in Sundry creditor and after a certain time the total amount will be transferred to Head Office where HO will later send the commission amount by IBCA. The credit line proposal contains the following particulars: . the branch sends a credit line proposal to the head office for approval of term loan. Assessment CREDIT LINE PROPOSAL In this step of the term loan. the channel sources the proposal and with complete documents forwards to Credit Unit provided by the RM’s recommendation. By the instruction of Head Office.

feasibility report.• • • • • • • • • Fresh/renewal/revision of the term loan Borrower’s name Types of business Capital structure Particulars of previous transaction Existing vis-à-vis proposed credit limits Movement of the accounts Liabilities of sister concerns Particulars of proposed facilities. etc. Entrepreneur • Entrepreneur/promoter has to be creditworthy and competent enough to run the proposed industry.SCB [PO] consider the following aspects in appraising. PROJECT APPRAISAL It is the reinvestment analysis done by the banker before a project he approved. A. . Project appraisal in the banking sector needed for the following reasons: • • • • To justify the soundness of an investment To endure repayment of bank finance To achieve organizational goals To recommend if the project is not designed properly TECHNIQUES OF PROJECT APPRAISAL An appraisal is a systematic exercise to establish that the proposed project is a viable preposition. The appraising officer checks the various details submitted by the promoter in first information sheet credit application form.

Viability of the project The project should be viable from organizational. It involves a critical study of following factors. financial and economic points of view. Location and site of the project: selection of the optimum location. technical. commercial. Who have good dealings with the bankers/out side parties and has social contacts and standings. who know about their business concern. a) Technical viability: it implies the assessment of various requirements of actual production process. technical expertise and expertise in the line of proposed industry.• Preference given for educated/knowledgeable sponsors. Sponsors with innovative ideas Sponsors must have net worth more then 2. revolves around the joint consideration and evaluation of the following factors: • • • • • Raw materials supplies Transportation facilities Power and fuel supply] Water and supply of manpower Nature and climate factor . therefore. • • • • • • • Who have own land and building for running the project? Have experience in working abroad. B. 1.5 times of the equity required for investment in the project. Have an account in SCB Sponsors requiring group findings may be given financial assistance provided for each other etc.

Capacity. Controls 3Rs: Reliability. in the event of default.  Unwilling to disclose information. Size of the project/plan: Size of the project/plan depends on the area covered by the project. so that.  Lack of experienced assessor. Credit appraisal: To assess the creditability of a borrower the bank must monitor the following things of the applicants: 6Cs: Character. Resource. plant & equipment: MAJOR PROBLEMS OF LRA IMPLEMENTATION:  Inadequate or inaccurate data proved by the applicants. 3.2. Responsibility Three questions that must be satisfactory answered in each credit application: 1. Collateral. bank can be recovered? HEAD OFFICE APPROVAL . Conditions. Can the credit agreement be properly structured and documented so that the bank and its depositors are adequately protected? 3. Can the bank perfect its claim against the assets and earnings of the customer.  Lack of auditor’s performance. It varies on project to project. Cash. Technology. Is the borrower creditworthy? 2.

the documentation starts. Documents is a written statement of fact evidencing certain transaction covering the. The borrower received the latter and returns a copy of this letter duly signed by the borrower as a token of having understood and acceptance of the terms and conditions above. The head office credit committee (HOCC) considers the proposal and tasks decision whether to approve the loan or not.Up on receipt of the credit line proposal from the branch the head office appraises the project. SANCTION LETTER After getting the head. DOCUMENT If the borrower accepts the sanction letter. office approval the branch issues the sanction letter to the borrower. Facility allowed. documents should be obtained: • • Joint promissory note Certificate copy of memorandum and articles of association. the HO sends the approval to the concerned branch. legal aspects duly signed by the authorized persons having the legal status. If it seems to be viable one. Purpose Rate of interest Margin Period of the loan and mode of repayment. For the term loan. If the loan is approved by the HOCC. A sanction letter consist the following particulars amongst other details: • • • • • • • • Name of borrower. the HO sends it to the Head office credit committee (HOCC) for the approval of the loan. . Security Other terms and conditions that is required.

• • • • • • • • • • • • • Latter of agreement Letter of disbursement Latter of installment Letter of continuity Latter of revival Letter of request Latter of counter guarantee Letter of lien Letter of hypothecation Letter of guarantee Stock report Thrust report Documents relating to mortgage OBTAINING CIB REPORT AND OTHER CONFIDENTIAL REPORT FROM FINANCIAL INSTITUTIONS: The CIB report and other credit report from financial institutions is necessary to know about the borrowers. if he taken any loan facility from any financial institutions and if he taken then what is condition of previous transactions. existing or future debt or performance of an . It is helpful to judge the borrowers’ status. It can be known through• • • Confidential report from other bank Credit information bureau report from Bangladesh bank Personal investigation MORTGAGE What is mortgage? A mortgage is the transfer of an interest in specific immovable property for the purpose of the payment of money advanced or to the purpose of securing the payment of money advanced or to be advanced by way of loan.

There are six types of mortgage. the mortgagor deposits the title deeds with the mortgagee with the intention of giving the mortgagee an equitable interesting the property. Simple mortgage 2. The term immovable property includes land. Registered mortgage The SCB generally practiced the equitable mortgage and the register (legal) mortgage in the branch. In case the advanced is made is made by a bank which is not situated at a . He transfers only some of his rights as an owner that means he cannot now sell the properly without the consent of the mortgagee. building and similar other assets. The mortgagor or his agent should deposit the title deeds relating to the property with the bank at a notified place. EQITABLE MORTGAGE In case of an equitable mortgage.engagement. It does not require the registration. Procedure for equitable mortgage: 1. The main characteristic of a mortgage is the mortgagor does not transfer the ownership of the property to the mortgagee. The transferors called a mortgagor and the transferee is called mortgagee. The principal money and the interest of which payment is secured for the time being are called the mortgage money and instrument (if any) by which the transfer is effected is called the mortgage deed. such as: 1. Equitable mortgage 6. Unregistered mortgage 4. It is only for the reliable clients of the bank. English MORTGAGE 5. which may give raise to pecuniary liability. Mortgage by conditional sale 3.

REGISTER MORTGAGE OR LEGAL MORTGAGE In a mortgage. On repayment of loan. Usually the bank gets a list of documents from its lawyer. 3. In case the mortgage happens to be a limited company. Periodical tax receipts shall also be verified. 2. The bank should accept documents only in original. the mortgage transfers the title to the mortgagor. An instrument mortgaging the property is executed.notified place. the mortgage must be registered with in 30 days of execution of the mortgage. the title deeds may be deposited with the branch of the properly at a notified place is not required. The mortgagor is required to send a covering latter with the title deeds acknowledging the deposit of title deeds with the intenation to create an equitable mortgage there on to secure a specific debt or debts. the mortgagor transfers to the mortgage the legal title to the property. . The disadvantages for this mortgage are property mortgaged can be realized. 4. when required. The sub registry office must register it. which the mortgagor has to deposit with the bank. This is a time consuming as well as expensive process. Procedure of a legal mortgage: 1. 6. 5. it is signed by the mortgagor and two witnesses. only through the courts orders. The mortgagor has to furnish periodically an encumbrance certificate declaring that no charge has been created against the mortgaged property subsequent to the date of the mortgage.

Some loans are repaid all at a time. FOLLOW-UP After the disbursement of the loan. the mortgage will be void. the bank follows the borrower in the following manner: • • • • • Continuous supervision Working capital Stock report Break even analysis Rescheduling of repayment RECOVERY In general. . A loan is repayment schedule also prepared by the bank and given to the borrower. For the case of recover money by selling mortgage property.he may use the instruments to establish personal convenient to pay. the following procedure is followed. In case the instrument is not only duly attested and registered when it is so required. Sometimes legal actions also taken for recover the loan.2. The mortgage is complete as soon as the deed is registered but it will be effective from the date of execution. DISBURSMENT After verify all the documents the client disburses the loan to the borrower by issuing a cheque book. For the case of recover liquid money LEGAL ACTIONS If legal actions are need to take for recover the loan. If any loan is not repaid then notices served to the customer.However. the loans are repaid in installment. This installment is according to bank directives.

16.according to this circular the loan are classified on the basis of the following: CLASSIFIED STATUS TERM Unclassified Less then 11 Less then 6 Less then 6 months CC/OD MID-TERM TERM LOAN LONG- .Advertisement sale for to sell auction …….Sell at highest rate given LOAN CLASSIFICATIONS AND PROVISIONING The loan classification procedure for all type of loan is governed by the guidelines contained in BCD circular by Bangladesh bank.Case ……….Money suit (No security) title suit Decreed Decreed Money execution …….Bidder ………….arrest on dewani court (for30/60) days party ………….issued in 1989.for the seize of property movable and immovable property Title execution ………. in 1989 and a subsequently revised partially through BRPD circular no..

months months Substandard months 6 to 8 months 6 to 11 months 9 to 11 months 12 24 and above 12 to 17 and above 12 to 17 months Doubtful 18 and above INTEREST CHARGE: 18 to 23 months Bad and loss a) If any loan becomes classified like substandard [SS] and doubtful[DF]the charged interest should be preserved in interest suspense a/c b) Bed debt/loss a/c cannot be charged interest but in order to operate such or to mitigate the outstanding interest can be shown on interest suspense a/c. . PROVISION: TYPES OF CLASSIFICATION Unclassified Substandard Doubtful Bad/Loss RATE OF PROVISION 1% 20% 50% 100% CARD PRODUCTS CREDIT CATDS What is a Credit Card? • A credit Card is a piece of plastic used for purchasing goods & service and for obtaining cash disbursements on credit terms. c) Only after the receiving the loan money the loan a/c can be shown on interest suspense a/c can be adjusted.

the Credit Card Company charged cardholders an annual free and billed them on a monthly of yearly basis. Each cardholder is assigned a revolving credit limit by the issuing financial institution. such as hotel chains and oil companies. USA.e. when individual companies. • Credit Card allows partial payments for purchases. The transactions during the period are summarized in the bill. began issuing them to customers for purchases made at those business. The first Credit Card ‘Bank Americard’ was issued by Bank of America in last 1958 in California. three different groups of . With this system. This use increased significantly after World War II. This system was licensed in other states starting in 1966. At the some time. and was renamed as VISA in 1976. This system was licensed in other states starting in 1966 in California. in turn. In 1951. Later in the late ’50. the Credit Card concept emerged where the Bank credits the account of the merchant as sales slips are received and assembles charges to be billed to the cardholder at the end of the billing period. Diners club issued the first Charge Card to 200 customers who could use it at 27 restaurants in New York. pays the bank either the entire balance or in monthly installments with interest. Cardholders can purchase goods/services up to the credit limit and can re-use the credit facility upon repayment. Cardholders can pay outstanding in full to avoid interest payments. HISTORY OF CARDIT CARD The use of plastic money originated in the united states during the 1920s. i.• • It is an unsecured credit. • Credit card is a safer substitute to cash and is the major made of payment worldwide. but charges interest on the amount owed. The cardholder. Interest rates are traditionally higher than those charged on consumer loans. • The cardholder is billed periodically (usually monthly) for repayment of the credit extended. Another major charge card was established in 1958 as the American Express Card by the American Express company. USA. credit without collateral of security.

Departmental Stores. Easy Facility Standard Chartered Credit Cardholders have the flexibility to make payment of as little as 5% of the outstanding balance and carry forward the rest of the balance. More importantly. The primary cardholder can set a spending limit for the supplementary card which limits the maximum amount that the supplementary cardholder can spend in one billing cycle. Electronic & Computer Shops. enroll merchants. Mobile & Internet Service outlets. Cash Advance Facility Repayment . banks could honor and issue Credit Cards. Supermarkets. Cardholders can use their cards in Hotels. children over 10 years of age of family members of friends. In 1978 the Master Card International and VISA International organizations agreed to a concept of duality. Banks that offered one card could not handle the other. Supplementary Card Standard Chartered Credit Cardholders can enjoy the convenience of having supplementary cards for cardholders’ spouse. in other words. and /or both. Petrol pumps etc. Competition was fierce. the merchants themselves were being forced to turn down sales from customers who did no carry the same card the merchant accepted. Airlines. KEY BENEFITS OF STANDARD CHARTERED CREDIT CARD Wide Acceptance Standard Chartered Bank (SCB) issues both VISA and MasterCard Credit Cards. Restaurants.banks that were not franchisees of Bank of America began activities that would later merge to become today’s MasterCard International. Hospitals & Diagnostic Centers. Jewelry Shop. Travel Agents. Standard Chartered Taka Credit cards are accepted at more than 4000 outlets across Bangladesh. Both organizations originally set out signing up member banks to issue cards. thus losing money. the two renowned Credit Card brands.

All cardholders are automatically enrolled into the program and are charged a nominal free of 0. Scheme the total Accident insurance This is a unique offer of SCB Credit Card. thus having access to cash 24 hours a day.cardholders have the flexibility to pay-off in 6. Insta Buys This exclusive feature allows SCB Taka Credit Cardholders to enjoy installment loan facility on their Credit Card at an interest rate of 16.18.000. Besides. Auto pay Bills . Moreover. thus having access to cash 24 hours a day. Cardholders can transfer any purchase greater than BDT 5000/. In case of death or ‘Total outstanding balance on the card in waived by the bank.12. cardholders earn 1 treasure points can be redeemed at any time to against with variety of gifts offered by Standard Chartered Bank. Silver cardholder are insured for BDT 100. Safety Net Permanent Disability Insurance ((TPD)’ of the primary cardholder. 00/.30.24. from any of the SCB ATMs.into instalment loan and repay in Equal monthly installments (EMI). All Coverage SCB Taka (both primary & supplementary) Credit Cardholders are automatically enrolled into all accident insurance coverage. Rewards Program Under this plan SCB Taka cardholders are rewarded for using their cards at merchant outlets.95% under this plan. For every 50 Taka spent.SCB Credit Cardholders can get instant cash advance up to 50% of card limit from of the SCB ATMs. or 36 Monthly installments. besides.35 on their monthly balance for availing this facility.and Gold cardholders are Covered for BDT 500. special promotions are run with specific merchants where customers can Insta Buys Facility at 0% Interest.

This process usually takes one working day. paper statement will be sent to the cardholder’s mailing address.This exclusive feature allows SCB Credit Cardholders to pay their Monthly utility bills through Credit Card by a Standing instruction. Cardholders can avail this facility to pay their monthly mobile phone bills of Grameen Phone / AKTEL / City Cell / Banglalink or Internet bills of Agni / BOL / Access Tel or Cable TV bill of Prisma Digital. Besides electricity bill of DESA / DESCO can also be settled through this facility. E-Statements This is a secure and prompt way to receive Credit Card’s monthly statement through e-mail address instead of receiving a paper statement. Cardholders can choose a maximum of 3-e-mail address for receiving their statements. all approved application specifying credit limits are sent back to . In case delivery failure (for any reason). After credit review. Cardholders availing this service will also receive a monthly ministatement through SMS. absolutely free of charge. Banking Procession of Credit Card Applications Step Applications submitted to any SCB branch or credit card sales team are forwarded to the Credit Card operation (CCO) unit for capturing data into card application processing system (CAPS). SMS Facility This feature provides cardholders as easy 24-hour direct access to their Credit Card balance information through their Grameen Phone Mobile. Step Applications are then forwarded to the consumer credit unit (CCU) for necessary credit assessment.

Common Reasons for declining a credit card application Incomplete documentation: . residence and business address of the applicant and forwards a report on each applicant to CCO. Step Approved applications received at CCO are sent for contact point verification (CPV) by outsource agencies. CCU revisits applications and any application with negative CPV is declined. CCO sends a system generated intimation to the applicants whose Credit Card applications are declined. Previously set credit limit may be reviewed at this point based on CPV report. The agency verifies the telephone no. Step After this final review from CCU.Less than 3/6 months bank statements . CCO forwards the approved applications along with CPV report to CCU for further review. The rejected applications are forwarded to sales teams for review of comments. Step After receiving all CPV report. approved applications are sent back to CCO for opening card accounts and producing plastics and PINS.card Operations. Step CCO arranges to deliver the Card and PIN at customers mailing address.More than 2 months old bank statement .

Negative contact pint verification (CPV) report . whichever they find convenient..Existing credit cardholders Credit Card Statement Cardholders are sent monthly bills/ statements detailing transactions and outstanding on their Credit Card accounts during the b9illing cycle. • Cardholders have the option to choose paper statement or estatements.Poor delinquency History of any other loan account with SCB .Non-availability of telephone (Off/Res.Earnings not meeting minimum required income. • All Bank Charges like finance charges/ late fee/ over-limit fee etc. are applied on the billing/ statement date.Debt Burden Ratio > 50% . Staff account’s statement date is 23rd of every month. Others: . . Customer accounts can have billing dates from 1st to • 22nd of every month. All card accounts are assigned a billing/ statement date at the time of accounts opening.) .Documents not duly authenticated Financial capacity of the Customer: .

• Minimum Amount due is calculated as 5% of Current Balance of BDT 500 (local cards)/ USD 10 (International cards). collection techniques. Explain benefits to pay. relative etc . level of customer service to the customers.• Payment due date mentioned on the statement is set as 15 days after the statement date. • Current Balance on the statement is the total outstanding balance of the account as of eh statement date. Obtain Reasons For Delinquency-RFD. A. Account Documentation: Concise summary and abbreviated negotiation skill. • • • Verify information Mailing Address day time and evening number Mobile phone. Get kept promise. • Cardholders must pay the minimum due amount by the payment due date to keep card account regular. o • • • • • notes.C: Collection Collection unit results: • • • Improve the effectiveness of my results by using proven collection Contribute to the quality of each telephone call and provide a high Maintain productivity standards by understanding how to use proven Main process: Verify information. whichever is higher. PART.

B. . Delinquency 1st Month 2nd Month 3rd month C. Obtain Reasons For Delinquency-RFD. ………………………………………. ………………………………………. *When? -A specific date. Get kept promise. *Where? -at the branch -ATM *What are the sources of funds? -cash on hand -commission cheque -bonus cheque -relatives -borrowing the money from a friend -loan -selling a possession Questioning techniques: Benefit= Avoiding a consequence. …………………………………….Payment by mail. *How? -payment at the branch -money order .. *Why is the account past due? *What is the customers’ present financial situation? * Is the customer and/ or spouse working? *Explain benefits to pay…………according to the severity of the delinquency…………………. *How much? -Always being the negation requesting the total amount due.

Some mission is to convince the customer to pay him the total amount due today. Verify an agreement During the counseling process. Some examples are        Why did you miss the payment? How can you feel behind? What obstacles prevent you from paying today? When will you make the payment? Where will you pay? Where are you getting the money to pay? Who is responsible for the account? Who can take a message? . c) What programs does the customer quality for? d) Know which actions the customer is considering to resolve the situation. Confirm that the information provided was understood. B. we need to ask different types of questions to get various results. An open-ended question seeks information and allows for a wide range of answers and often requires a several sentence response or longer explanations.Collection is a sales job. a) b) c) Determine ability and willingness to pay. Closed questions are used to verify specific information and can only be answered with “No” or “Yes”. Identify the customers’ needs and expectations. Use motivation and persuasion to create urgency and to overcome the customer’s objections. -Did you receive your statement? -Have you changed job? -Do you have a pen to take down my number? -Would you take a message? -Is he at work? 2. Questioning is a critical tool in the counseling process. 1. Questions are tools toA. b) Understand alternatives to make short term payment arrangement. If we are looking to – a) Obtain information about customers’ current financial situation. If we are looking toUnderstand the customers’ position about the specific situation.

Inquisitive(ask good question)-Effective collectors ask the right questions to find out why customers aren’t paying and get the information they need to obtain a firm promise to pay. volume. Good product knowledge Understand where be wounds Communication skills IV. Collection Negotiation techniques  Approach and Attitudes Characteristics of effective sales people I. How often do you speak to him? The use of open-ended questions will help eliminate faculty assumptions and bring about more effective communications. Negotiation skill CHARACTERISTICS OF COLLECTORS Effective collectors snare qualities: 1. and rate. and listen to the answers so that they develop a payment arrangement that is tailored to the customer’s situation. Clear communicators. Use Good judgment. They also have good voice qualities-tone.Effective collectors phrase their questions and comments in ways that are readily understood and realize that customers want clear communicators. III. II.Effective collectors know how to balance being firm. 4. 3. They also know when to bring a call . Good listeners-Effective collectors ask appropriate questions. 2. air and friendly.

They are firm and fair. Motivated/Persistent-Effective collectors have lots of drive and persistence to keep going.They know how to do their jobs and are prepared to negotiate a mutually satisfactory payment arrangement. call after call and customer after. 9. They personalize their approach to the customer and gain the customer’s commitment. 6. When customers start giving excuses for not paying. They are not stopped by the first no or excuse that they encounter. Knowledgeable-Effective collectors know how to follow the negotiation sequence and which remedies to select to resolve the account situation. Positive attitude-Effective collectors react positively to objections and resistance to making or keeping a promise. They adapt readily to . They also know what they can and cannot do within the policies of the bank. 7. Persuasive-Effective collectors motivate customers to act on the importance of honoring their commitments and maintaining a good credit rating. 10.e. 5. This helps them achieve effectiveness. Self-confident-Effective collectors ‘words communicate the impression that they are in control. as well as legally. quality and productivity goals. That helps in negotiating better payment arrangements. these collectors go to work to overcome the objections to pay. they don’t let a customer ramble on after a promise to pay has been agreed upon). 8. and they know when to stress the urgency of paying immediately. Imaginative-Effective collectors are creative in tailoring solutions to fit customers’ circumstances. They measure their success by their results and strive to be the best at what they a conclusion (i.

different customer types and have lots of good techniques at their fingertips. Adapt their strategy to the customer’s situation. . Although they may have an initial strategy for resolving a problem. Turn broken promises into kept promises. Adapt their approach to the customers.Excellent collectors know how to identify the customer’s problem through effective questioning and listening and then how to address it with the customer. An excellent collector needs to: 1.Excellent collectors realize that people are different and react differently to collection situation. 5. they tailor their approach to the customer. 2. 4. When they try to educate and motivate.Excellent collectors realize that situations are different and call for different approaches and remedies. Obtain good promises to pay and firm commitments. They review account information and notes quickly and correctly so they can get right to the point when talking to customers. 3. 6. on every account and during every contact. Use their time effectively-Excellent collectors don’t waste time. they are flexible enough to change their approach as they surface additional information during a call. Consistently perform the basics-Excellent collectors are good at the basics and put them into practice every day.Excellent collectors can detect insincere agreements and ask the customer enough questions to determine whether a particular solution is truly workable.

• Define and develop consistent FORMATS and PROCEDURES to review telephone collector’s performance. . They learn from their mistakes. and actively look for ways to improve.Excellent collectors always assume that they can do the various parts of their job better. HOW. 8. as well as their successes.Excellent collectors share ideas and contribute suggestions. help train other collectors and make recommendations to improve the process. tools for MEASUREMENT MOTIVATION fundamental effective supervision in a collection call center. MONITORING Permanent/Ongoing Call Monitoring-is one of the most important responsibilities of collection supervision to reinforce effective performance. WHY. • Establish the importance AND and relationship as of MONITORING. THE 3 M’S OF COLLECTION MANAGEMENT An effective supervisor should practice and become an expert on the 3 M’s to meet business goals and objectives. MUCH and HOW to monitor telephone collectors. Team players. • Learn COACHING and FEEDBACK techniques to improve the performance of telephone collectors performing below job standards and motivate high performers to perform at optimum levels. Learn from past experience. • Define the need for call MONITORING and understand WHEN.7.

They are complementary and using different combinations of techniques results in an objective and precise evaluation of collectors’ performance. The primary objectives of call monitoring in a collections operation are: Identifying opportunities-for collectors to improve their  communication skills in order to get firm commitments to pay from customers   Ensuring –that collectors are following company policies Verifying compliance-with laws and regulations Secondary objectives may include improving the quality of customer service. Call duration may be impacted by how quickly collectors can access system information. the duration of the call. It is not unusual for a   . how the collector identifies the situation. identifying training needs. recognizing good performance. Call Duration. the foundation to structure productive feedback in individual or group sessions. a supervisor should evaluate certain characteristics including: Content . A supervisor will distinguish the type of call and analyze the collector’s ability to address the situation quickly and appropriately. MONITORING CATEGORIES There are different ways to implement Monitoring.The content of the call is determined by listening to the telephone conversation between the collector and the customer. and the way the collector makes decisions. undoubtedly. When monitoring calls. A supervisor observes the collector’s speaking and listening skills.Call Monitoring is a very useful technique to evaluate and improve collectors’ skill and is. and improving the relationship between supervisors and collectors.

• • • • 2. Experienced collectors usually update the customer’s recode during the conversation. There is strong value in giving immediate performance feedback to the collector about the handling of calls monitored. Managing the call and controlling the Conversation 1. Extract information without jumping to conclusions. State the last activity on the account. To minimize after-call work time many collection operations use abbreviations and codes to recode call results. Best practices indicate that in an early delinquency collection operation. Giving corrective feedback by positively coaching collectors assists them in making immediate improvements. This time can be greatly reduced by using specialize tools such as workflow and customerrelationship management software. • • Puts the facts on the table Explain the status of the account.close questioning technique. After-Call Work Time-A critical factor that infects productivity in a predictive-dialing environment is after-call work time or update time. for example.collector to need to view at least three screens to handle a call: the predictive-dialing interface screen which is the initial screen a collector may view that displays basic account information. the collection database which may include historical and financial information and real-time payment information from host system.   . the time a collector spends updating the customer’s record with the call results. optimum time usage is at least 85% talking to customers and 15% or less updating the record. keep it in the present Ask for the money. Performance Feedback. Collectors frequently spend a lot of time flipping through screens to get information. Information Gathering Use open.

• • and ability to pay. advice him /her Do not take what the customer says personally. Instead use Let the customer vent his or her frustrations and do not If a customer use obscene language. Usage of poster PC banking software cards 400 2. Bridging • • • • • • • interrupt. Classifying the customers’ response to identify willingness Develop the sales strategy. Lead the customers back to the negotiation. Efficient administration 3. Co-operation with each other . Provisioning and Legal Action: The level of delinquencies is determined based on the number of days loan installment(s) is/ are missed by the customer. occurrence. • 3. Listen Get on the customers’ side. Overcome the emotions. etc. Acknowledge. Fewer default loan in credit card 4. Delinquency. more neutral language. you will disconnect the call if he or she continues. such as –situation. • • Chapter Find out RFD. 4 Tips for the managing angry customers’ Need to avoid charged words like-“Problem”. SWOT ANALYSIS OF SCB Strength: 1.

Introducing ATM & Branch in our rural area. Entrance of new private Bank. Shortage of Branches & ATM machine 2. If the product or service’s performance falls short of expectations. Huge fairness area credit card. 2. Political unrest 3. Customer awareness 3. Energetic as well as smart work force. Shortage of men 4. Shortage of Merchant Opportunity: 1.customer relationship 6. 2. Different classic services of other Banks. SATISFACTION: FROM THEORETICAL . Strong Financial Position 7. Good banker. Growth of sales volume 3. introducing new facilities for credit 4. CUSTOMER VIEW Customer satisfaction is the extent to which a product or service’s received performance matches a buyer’s expectations. Threats: 1. Weakness: 1. the buyer is dissatisfied or delighted.5.

rceived company performance and customer satisfaction Highly satisfied istomers produce several benefits for the company Satisfied customers . iyers are likely to be disappointed can arise either from a crease in product and service quality or from a increase in customer pectations.Expectations are based on customers past buying experiences. and marketer and competitor information and promises Marketer must be careful to set the right level of expectations I they set expectations too low. In either case. the opinion friends and associates. it presents an opportunity for companies that rn deliver superior customer value and satisfactions Today’s most successful companies rising. Such companies track their customer expectations. expectations and delivering rformance to match. they may satisfy those who buy but fail to tract enough buyers In contrast they raise expectations too high.

A company an always increase customer satisfaction by lowering its price increasing its services. it does not attempt to maximize customer satisfaction. Concluding Remarks As a first generation private bank. remain customers for a long period and talk vorably to others about the company and its products and services Although the customer-centered firm seeks to deliver high customer satisfaction relative to its competitors. In addition. This requires a very delicate balance. However. Standard Chartered Bank has come a long way to reach its present stature. So. Now. but it may result in lower profits. When any problem is identified. it becomes easier to solve the problem. every organization has its brighter side as well as a few difficult ones.e less price sensitive. the purpose of marketing is to generate customer value profitably. it is also important for the company to know about the satisfaction level of the customers. In order . In the next part of my paper I have focused on the customer satisfaction factors of. That has been followed by my primary research. the marketer must continue to generate more customer value and satisfaction but not give away house. a survey to find out the customer satisfaction level of Credit Card. we are proud to be a part of this pioneer of private sector banking. we have a very good idea regarding the importance of customer satisfaction. Thus.

Most international banks and some local private banks have already introduced all-time-case-line. Thank you all for your patient perusal. We must say. since an imperfect past can make the future tense. and On-line banking in their service fleet. the shortage of sitting arrangement for clients remains a conspicuous weakness. ZEITHAML. While our experience will serve as the pre-amble for future success. “SERVICE MARKETING MACRAW-HILL. despite the very cordial and efficient service offered by the employees. Debit Card and Utility Bills payment Card all in a single card is a great step on part of the Bank to improve its customer service. VALARIE. Credit Card. the initiative taken to introduce the Various Cards Issued by SCB combining A. we should be careful in reshaping our venture and efforts to obtain the goal. we should also try to gain a perfect and dynamic vision for the future. but in the present decor. we should reshape our products and introduce innovative ones in such a competitive market composition in which we minimize the difficulties.M. we also should try to revitalize the quality and quantity of service. our attention should always be focused on this subject. Since the prime concern of a bank is to impress its client not only through financial service but also through a cordial environment. Card. BITNER. The meaning of Service for the banking sector is constantly being reshaped. In addition.T. WORKS CITED 1. 1996 . Therefore. we are the ones to make the tension-free and bright future-a future that must necessarily be better than today. In this way. The Bank has decorated it officers beautifully. telephone banking. MARY.

stardandchartered.BY CR KOTHART. 3. O. “Credit Card Procedure Manual. “METHODOLOGY OF RESEARCH IN SOCIAL SCENCE” -BY DR. Standard Chartered web site. www.2. 5. 4. RESEARCH MEIHODOLOGY METHODS & TECHNI QUES” . KRISHNAWAMY .