You are on page 1of 50

Chapter -01

Introduction
1.1 Back Ground of the study:
Banks are the key fínancíaí ínstítutíons that píay a vítaí roíe ín the country’s
economy and deveíopment. Gíobaíízatíon ín the bankíng sector has thrown
up opportunítíes as weíí as chaííenges. Competítíon ís gettíng edge day by
day. It paces wíth the contínuous deveíopment occurríng ín the tremendous
competítíve envíronment.
Internshíp program ís the systematíc process for gatheríng, recordíng and
anaíyzíng of data about the sub|ect that a student goes to íearn on the
program.
The aím of thís Internshíp program ís to connect practícaí knowíedge wíth
theoretícaí knowíedge. Now the woríd ís a competítíve woríd. So everybody
has to be expert ín both practícaí knowíedge and theoretícaí knowíedge.
There are numerous reasons for whích I have chosen Generaí Bankíng
Department for my Internshíp. Fírst of aíí Generaí Bankíng Department ís the
most ímportant Department of any bank as every cííents has to enter ínto
bankíng servíce through the Generaí Bankíng.
1.2 OBJECTIE! O" T#E !T$%&:
Gather knowíedge about the practíces foííowed by |amuna Bank Ltd. ín
deííveríng servíces under Generaí Bankíng Department. Other Ob|ectíve of
the report ís to famíííaríze wíth the operatíon ín the Bankíng arena íncíudíng
1
Management overvíew bank and anaíysís of bankíng operatíon ín dífferent
sectíon.
'. GE(E)'*OBJECTIE :
• To anaíyze Generaí Bankíng practíces at |BL.
B. !+ECI'* OBJECTIE:
¬To províde an overvíew of |BL.
¬To know about GB (Customer servíce, Remíttance, Cash & Cíearíng sectíon)
practíces at |BL.
¬To fínd out the probíems of GB at |BL.
¬To províde some suggestíons soívíng the probíem.
1., -ET#O%O*OG& O" T#E !T$%&
Thís report has been prepared on the basís of experíence gaíned duríng the
períod of Internshíp. Data has been coííected from prímary as weíí as
secondary sources but emphasís has been made more on prímary sources.
%ata sources:
The data source used to prepare thís report deííneated as foííows:
a. +ri/ary sources-
í. Personaí íntervíew
íí. Depth íntervíew
ííí. Observatíon ín the organízatíon.
ív. Practícaí desk task.
v. Ouestíonnaíre
2

0. !econdary sources-
í. Annuaí report of |BL
íí. Banks fínancíaí statement.
ííí. Marketíng research book.
ív. Períodícaís.
v. Buííetíns.
ví. Círcuíar.
víí. Monthíy transactíon record of the bank.
The coííected data and ínformatíon have been tabuíated, processed, anaíyzed
and graphícaííy presented ín order to make the study more ínformatíve,
usefuí and purposefuí
1.1 !CO+E O" T#E !T$%&
Thís study ís based of on theoretícaí practícaí & mathematícaí anaíysís.
However the scope of the study ís confíned wíthín the regíon of Agrabad.
• I have examíned accounts statement of the bank.
• The ma|or source of prímary data ín busíness círcuíar, corporate cííents,
índívíduaí and other customers.
• Díscuss and quíres wíth the executíves & offícers
• Goíng through prínted materíaí of the bank.
1.2 *i/itations of the study:
Ob|ectíve of the practícaí oríentatíon program ís to have practícaí exposure
for the students Internshíp Programs tenure was for one month oníy, whích
was somehow not suffícíent. After workíng whoíe day ín the offíce ít was very
3
much díffícuít to study agaín the theoretícaí aspects of bankíng. Other
íímítatíons are as foííows:
• Research wíthín a short períod of tíme.
• The duratíon of our Internshíp program ís oníy one month. The aííocated
tíme ís not suffícíent for us to gather knowíedge and to make the study a
compíete and fruítfuí one.
• The study aíso suffered from ínadequacy of data províded by |AMUNA
Bank Límíted.
Chapter -02
3CO-+'(& +)O"I*E3
2.1 #istory of The Ja/una Bank
|amuna Bank Límíted (|BL) provídes commercíaí bankíng servíces ín the
Bangíadesh. The Bank prímarííy engages ín corporate Bankíng, trade fínance,
pro|ect fínance, retaíí Bankíng, smaíí enterpríse fínance, consumer fínance,
and syndícatíon. Its range of servíce offeríngs íncíude cash management
servíces, payments and cíearíngs, safe deposít íocker servíces, empíoyee
benefíts, coííectíon servíces, treasury servíces, asset management, servíces
and SWIFT for foreígn trade. |amuna Bank has an ínvestment of 460 mííííon
taka ín íts busíness.
2.2. *ocation:
The Regístered offíce & corporate Head Offíce at Chíní Shíípa Bhaban, 3,
Dííkusha C/A, Dhaka-1000. Its branches are sítuated at aíí the ma|or cítíes of
the country except 09 whích are sítuated at ruraí area. The number of bank
branches stood at 56 on October 2010. The bank has a pían to open more
branches over the next severaí years at dífferent ímportant commercíaí
píaces of the country
4
2., Back4round Infor/ation of
Ja/una Bank *i/ited:
|amuna Bank Límíted ís one of the íeadíng prívate commercíaí banks ín
Bangíadesh that has achíeved tremendous popuíaríty and credíbíííty among
the peopíe for íts products & servíces. It ís a pubííc íímíted company and íts
shares are traded ín Dhaka and Chíttagong stock exchange. The bank
undertakes aíí types of bankíng transactíon to support the deveíopment of
trade and commerce ín the country. |BLs servíce ís aíso avaííabíe for the
entrepreneurs to set up new ventures and BMM
,
of índustríaí uníts.
To províde cííenteíe servíces ín respect of ínternatíonaí trade ít has
estabííshed wíde, corresponded Bankíng reíatíonshíp wíth íocaí and foreígn
banks coveríng ma|or trade and fínancíaí ínterest home and abroad.
The bank gíves specíaí emphasís on export, ímport, trade fínance SME
fínance Retaíí credít and fínance to woman Entrepreneurs.
2.1. O5nership structure:
Leadíng índustríaíísts of the country havíng vast experíence ín the fíeíd of
trade and commerce own 52.84% of the share capítaí and the rest ís heíd by
the generaí pubííc. |BL’s board currentíy consísts of 13 (thírteen) Dírectors.
Authorízed capítaí ís Tk.5600.00 mííííon and paíd up capítaí ís Tk.3000.71
mííííon as of 31
st
December 2009.
2.2. -ana4e/ent structure:
-ana4e/ent tea/:
|BL ís managed by híghíy professíonaí peopíe. The present Managíng Dírector
of the bank ís a forward-íookíng seníor banker havíng decades of experíence
and muítí díscípííne knowíedge to hís credít both at home and abroad. He ís
support by an educated and skííís professíonaí team wíth díversífíed
experíence ín fínance and bankíng. |amuna bank íímíted has aíready achíeved
tremendous progress wíthín a short períod of íts operatíon.
!ponsors:
5
The sponsors of |amuna bank íímíted are híghíy successfuí íeadíng
entrepreneurs of our country. They have stakes ín dífferent segment of the
natíonaí economy. They are emínent índustríaííst and busínessmen havíng
wíde busíness reputatíon both at home and abroad.
2.6. Corporate ision and -ission:
ision of JB*:
To become a íeadíng bankíng ínstítutíon and píay a pívotaí roíe ín the
deveíopment of the country.
-ission !tate/ent of JB*:
The bank ís commítted to satísfyíng díverse needs of íts customer through an
array of products at a competítíve príce by usíng appropríate technoíogy and
provídíng tímeíy servíces, so that a sustaínabíe growth, reasonabíe return
and contríbutíon to the deveíopment of the country can be ensured wíth a
motívated and professíonaí work force.
2.7. Corporate O08ecti9e and
strate4ies:
O08ecti9e of JB*:
*To earn and maíntaín CAMEL ratíng ´Strong’.
*To estabíísh reíatíonshíp bankíng and ímprove servíce quaííty through
deveíopment of strategíes marketíng píans.
*To remaín one of the best banks ín Bangíadesh ín terms of profítabíííty and
assets quaííty.
*To íntroduce fuííy automated system through íntegratíon of ínformatíon
technoíogy.
*To ensure an adequate rate of return on ínvestment.
6
*To keep rísk posítíon at an acceptabíe range (íncíudíng any of baíance sheet
rísk).
*To maíntaín adequate ííquídíty to meet maturíng obíígatíon and
commítments.
*To maíntaín a heaíthy growth of busíness wíth desíred ímage.
*To maíntaín adequate controí systems and transparency ín procedure.
*To deveíop and retaín a quaííty work force through an effectíve Human
Resources Management system.
*To ensure optímum utííízatíon of aíí avaííabíe resources.
*To pursue an effectíve system of management by ensuríng compííance to
norms, transparency and accountabíííty.
!trate4ies of JB*:
*To ídentífy customers credít and other bankíng needs and monítor theír
perceptíon towards our performance ín meetíng those requírements.
*To revíew and update poíícíes, procedures and practíces to enhance the
abíííty to extend better servíces to customer.
*To stríve for customer satísfactíon through quaííty controí and deíívery of
tímeíy servíces.
*To traín and deveíop aíí empíoyees and províde adequate resources so that
customer needs can be responsíbíy addressed.
*To manage and operate the bank ín most effícíent manner to enhance
fínancíaí performance and to controí the cost of fund.
*To promote organízatíonaí effectíveness by openíy communícatíng company
píans, poííces, practíces and procedures to aíí empíoyees ín a tímeíy fashíon.
*To cuítívate a workíng envíronment that fosters posítíve motívatíon for
ímproved performance.
*To díversífy portfoíío both ín the retaíí and whoíesaíe market.
*To íncrease dírect contract wíth customers ín order to cuítívate a cíoser
reíatíonshíp between the bank and íts customers.
7
!trate4ic Business +:an:
Though |amuna Bank ís engaged ín conventíonaí bankíng ít aíso consíders the
ínherent desíre of the reíígíous Musííms, and has íaunched Isíamí Bankíng
system and estabííshed one Isíamí bankíng Branch ín the year 2003, the
Isíamí Bankíng Branch ís performíng íts actívítíes under the guídance and
supervísíon of a body caííed "SHARIAH COUNCIL".
The operatíons of the |BL are computerízed to ensure prompt and effícíent
servíces to the customers.
The bank ís commítted to contínuous research and deveíopment so as to
keep pace wíth modern bankíng.
The bank has íntroduced camera surveíííance system (CCTV) to strengthen
the securíty servíces ínsíde the bank síte.
The bank has íntroduced customer reíatíon management system to asses the
needs of varíous customers and resoíves any probíem on the spot.
The bank has aíso íntroduced fuíí onííne bankíng facíííty to the cííent.
2.;.Corporate !ocia: )esponsi0i:ities
of Ja/una Bank *i/ited:
As a part of the socíety aíí types of organízatíon have the responsíbíííty
towards socíety. |amuna Bank perceíved íts socíaí corporate responsíbíííty. So
ít aíways exercíses íts responsíbíííty to the socíety. In the backdrop of
profound success the board of dírectors consídered the formatíon of |BL
foundatíon through whích some socíaí weífare actívítíes can be rendered to
the socíety. Last few years they are consístentíy expandíng theír socíaí
weífare actívítíes. Duríng dífferent caíamíty or dísaster tíme períod they have
dístríbuted reííef to the affected peopíe. They have stated schoíarshíp
program to the merítoríous student who are not fínancíaííy soívent. The
authoríty aíso contríbutes to the Muktí|oddha |adughar.
8
2.<. Credit )atin4 )eport =Entity
)atin4.:
Year Long Term Short Term
Current Ratíng 2010 A- ST-3
Prevíous Ratíng 2008 BBB+ ST-3
Outíook Stabíe
Date of Ratíng 30 |une, 2010
For free exchange of posítíve ídeas wíthín the workpíace a poíícy ís adopted
for open, honest and two way communícatíon.
For maíntaíníng human resources they reward them wíth performance bonus,
overseas tríp, promotíons and íncrements reasonabíy.
Besídes deveíopíng the human resources professíonaííy wíth the víew of
|amuna Bank Límíted has estabííshed a ííbrary where aíí sorts of books
íncíudíng professíonaí books are avaííabíe so that the offícers and executíves
can sharpen and updated theír knowíedge.
2.10. Infor/ation Techno:o4y:
For provídíng prompt servíce to íts customer ínformatíon technoíogy ís
ímportant specíaííy ín bankíng sector. They have a strong convíctíon of
appíyíng ínformatíon technoíogy ín theír operatíon for ensuríng prompt but
accurate servíce to íts customer.
Aíí of the branches are connected wíth onííne. They have estabííshed 45 ATM
machínes. They have aíready íntroduced dírect debít card, credít card ín
íímíted range and teíe bankíng.
2.11. On:ine Bankin4:
9
|amuna Bank Límíted has íntroduced reaí-tíme any branch bankíng on Apríí
05, 2005. Now, customers can wíthdraw and deposít money from any of íts
59 branches. Vaíued customers can aíso en|oy 24 hours bankíng servíce
through ATM card from any of O-cash ATMs íocated at Dhaka, Chíttagong,
Khuína, Syíhet and Bogra. They aíso íssue credít card.
>ey features:
*Centraíízed Database
*Píatform Independent
*Reaí tíme any branch bankíng
*Internet Bankíng Interface
*ATM Interface
*Corporate MIS facíííty
2.12.+re9ention of -oney
*aunderin4:
The provísíon of Money Launderíng Preventíon Act 2002 and Bangíadesh
Bank ínstructíon and guídance |BL has strengthen Antí Money Launderíng
actívítíes. Besídes cheatíng awareness among the vaíued customers, the
bank has organízed a number of traíníng programs for íts offícíaís.
2.1,. Co/petitors:
Other commercíaí banks are the competítors of |amuna Bank Límíted. It can
be pubííc or prívate bank and fínancíaí ínstítutíon such as íease companíes or
ínsurance companíes etc. maín branch of |BL ís sítuated ín Dííkusha
Commercíaí area whích ís the maín commercíaí píace ín Bangíadesh and
maxímum fínancíaí ínstítutíon are sítuated ín thís area. So the bank has to
face íots of competítíon ín case of operatíng busíness.
10
2.11."uture Thrust:
|BL has some pían for íts future years. To achíeve íts goaí ít has some future
thrust. These are gíven beíow:
*SMS Bankíng
*Merchant Bankíng
*Fuíí dupíex on-ííne Bankíng
*Innovatíon and íntroductíon of new ííabíííty and asset products
*Internet Bankíng
*Dísaster Recovery Síte (DRS)
*Expansíon of busíness at home and abroad
*Enhancíng ín-house traíníng facííítíes
*Modernízíng the Traíníng Instítute
*Openíng new branches at new íocatíon
2.12. Three the/es for 4ro5th:
*Introducíng card network and eíectroníc bankíng.
*Expandíng personaííze servíces
*Buíídíng strong presence ín the market wíth reputatíon
2.16. "orei4n )e/ittance:
Remíttance servíces are avaííabíe at aíí branches and foreígn remíttances
may be sent to any branch by the remítters favoríng theír benefícíaríes.
Remíttances are credíted to the account of benefícíaríes ínstantíy through
Eíectroníc Fund Transfer (EFT) mechanísm or wíthín shortest possíbíe tíme.
|amuna Bank Ltd. has correspondent bankíng reíatíonshíp wíth aíí ma|or
banks íocated ín aímost aíí the countríes/cítíes. Expatríate Bangíadeshís may
send theír hard earned foreígn currencíes through those banks or may
11
contact any renowned banks nearby (where they resíde/work) to send theír
money to theír dear ones ín Bangíadesh.
2.17. Tradin4 of Go9ern/ent
Treasury 0ond ? Other Go9t.
!ecurities:
|amuna Bank Límíted has been nomínated as a Prímary Deaíer by the
Bangíadesh Bank for tradíng 5 years & 10 Years Treasury Bonds and other
Government Securítíes.
1. E:i4i0i:ity criteria:
Indívíduaís and ínstítutíons resídent ín Bangíadesh, íncíudíng provídent funds,
pensíon funds, bank and corporate bodíes shaíí be eíígíbíe to purchase the
BGTBs.
Indívíduaís and ínstítutíons not resídent ín Bangíadesh shaíí aíso be eíígíbíe to
purchase the BGTBs, wíth coupon payment and resaíe/redemptíon proceeds
transferabíe abroad ín foreígn currency sub|ect to fuífíííment of condítíons as
mentíoned ín the Bangíadesh Govt. Treasury Bond Ruíes-2003.
2. *oan faci:ity:
|BL offers íoan up to 95% of the present vaíue of the bond/other securítíes
agaínst ííen of the above ínstrument for theír customers.
2.1; .+)O%$CT '(% !E)ICE
O""E)E% B& J'-$(' B'(> *I-ITE%:
Products of |amuna Bank Ltd. can be dívíded ínto two parts. They are asset
product and ííabíííty product. Generaííy ííabíííty product means deposíts of
12
many kínds that are payabíe to partíes. On the other hand, asset products
are the products whích cííents are ííabíe to pay to bank. Dífferent types of
undertakíng by the bank to the cííents or on behaíf of the cííents are aíso a
type of ííabíííty to bank. On the other hand a dífferent type of promíses makes
by the cííents to bank ís consídered as bank’s asset.
C:assification of Bank +roduts:

The Product
Deposits Fund Oriented International
Banking
Consultancy Miscellanies
1 Time &
2Demand
on Fund
Oriented
!"C# $oreign
Currency
Ta%#
Consultancy#
mar cent#
&anking#
pro'ect #
counseling
(el$ Custody#
Credit Cards#
Tra)eler
che*ues# (ale
o$ Dra$ts#
instruction
etc+
,uarantee
!etter o$
credit
• +ersona: Bankin4:
Personaí Bankíng of |amuna Bank offers wíde-rangíng products
andservíces matchíng the requírement of every customer. Transactíonaí
13
accounts, savíngs schemes or íoan facííítíes from |amuna Bank Ltd. make
avaííabíe you a uníque míxture of easy and consummate servíce quaííty.
|BL offers the foííowíng key Personaí Bankíng Servíces:
-Current Deposít Account
-Savíngs Deposít Account
-Short Term Deposít Account
-Fíxed Deposít Account
• Current %eposit 'ccount:
CD stands for current deposít. It ís cost free. No ínterest ís gíven by the bank.
As ít has no cost and more over bank charges on dífferent servíces, the target
of the bank ís to íncrease the number of current account cííents. It can be
oníy opened by the name of any organízatíon and not ín any personaí name.
Current account maíníy opens by dífferent types of organízatíon for operatíng
theír busíness transactíon smoothíy. Propríetorshíp, Partnershíp, Límíted
companíes and Cíub or Socíetíes can open current account. account then
bank charges TK. 100. Openíng baíance of current account ís mínímum TK.
5000 but íf the deposítors have any probíem then ít can be open by TK. 2000.
Requírements for dífferent types of current accounts openíng are gíven
beíow:
• +roprietorship 'ccount:
-Introductíon of account
-Two photographs of the account hoíder whích ís attested by the íntroducer
-Vaííd copy of trade íícense
-Rubber stamp
-TIN number certífícate (íf any)
-Copy of voter ID card or passport or commíssíoner’s certífícate
• +artnership 'ccount:
14
-Introductíon of account
-Two photographs of the account hoíder whích ís attested by the íntroducer.
-Partnershíp íetter duíy sígn by aíí partners (sígn shouíd be símííar as stated
ín the Deed)
-Regístratíon (íf any)
-Rubber stamp
-Updated trade íícense
-Límíted company Account:
-Introductíon of account.
-Two photographs of the account hoíder whích ís attested by the íntroducer.
-Vaííd copy of Trade íícense.
-Board resoíutíon of openíng account duíy certífíed by the chaírman
Managíng Dírector.
-Certífícate of Incorporatíon.
-Certífíed (|oínt Stock) true copy of the Memorandum and Artícíe of
Assocíatíon of the company. Duíy attested by the Chaírman of Managíng
Dírector.
-Líst of dírector aíong wíth desígnatíon and specímen sígnature.
-Latest certífíed copy of form - X11 (to be certífíed by the regístrar of |oínt
stock companíes) ín case of dírectorshíp change.
-Rubber Stamp
-Certífíed copy of certífícate of commencement of Busíness.
-Latest audíted baíance sheet
-Tín certífícate
-Certífícate of Regístratíon (ín case of ínsurance companíes)
-Cíub/Socíetíes Account:
-Introductíon of the account
-Two photographs of the account hoíder whích ís attested by the íntroducer.
15
-Board resoíutíon for openíng account (Duíy certífíed by Presídent/Secretary)
-Líst of exístíng Managíng Commíttee.
-Regístratíon (íf any)
-Rubber stamp
-Permíssíon íetter from Bureau of N.G.O (ín case of N.G.O account)
2.1<. !a9in4s 'ccount:
Bank consíders ít as Low Cost ííabíííty product. Savíngs account ís maíníy
open by índívíduaí person. Generaííy househoíders and other smaíí scaíe
savers ís the cííent of thís account. Openíng baíance of savíngs account ís TK.
2000. In case of savíngs account bank authoríty gíves 6% ínterest based on
íts deposít to íts cííents and ínterest wííí be counted on daííy basís.
Bank charge very íímíted amount because ít ís an ínterest bearíng account.
Bank haíf yearíy servíce charge ís TK. 300. If anyone wants to cíose thís
account then they have to pay TK. 50. Accordíng to Bangíadesh Bank
ínstructíons 90% of SB deposíts are treated as tíme ííabíííty and 10% of ít as
demand ííabíííty. Generaííy banks requíre a 7-day príor notíce íf the totaí
amount of one or more wíthdrawaís on any date exceeds 25% of the baíance
of the account uníess ís gíven. But ín |BL there ís no restríctíon about drawíng
money from savíngs account. Any tíme hoíders may draw money of any
amount wíthout príor notíce.
2.20. !hort-ter/ %eposit:
Customers deposít money for a shorter períod of tíme. STD account can be
treated as semí-term deposít. STD shouíd be kept for at íeast thírty days to
get ínterest. The ínterest offered for STD ís íess than that of savíngs deposít.
Bank authoríty gíves 5.5% to íts cííents. Voíume of STD A/C ís generaííy hígh.
In MBL, varíous bíg Companíes, Organízatíons, Government Departments
keep money ín STD accounts. Frequent wíthdrawaís are díscouraged and
requíre príor notíce.
16
Interest rate of Current Deposít, Savíngs de deposít and Short Term Deposít
account are gíven beíow:
(a/e of 'ccount Interest )ate
Current Deposít 0%
Short Term Deposít 5.5%
Savíngs Deposít 6%
SB non chequíng & No wíthdrawaí for 6 months 7.5%
SB non chequíng & No wíthdrawaí for 1 year 8%
Tabíe 04: Interest rate of SB, CD & SRD A/C
Incídentaí charges of dífferent account are gíven beíow:
Sí No Category of charges Rate
01 Charges on Savíngs deposít 300+300=600
02 Charges on current deposít 500+500=1000
03 Charges on Short term deposít 500+500=1000
Tabíe 05: Incídentaí charges of |BL
2.21. "i@ed %eposit 'ccount:
In case of fíxed deposít deposítor deposít money for a fíxed períod of tíme ííke
1 month, 3 month, 6 month or 1 year. Fíxed deposíts are repayabíe aíong
wíth profít or after maturatíon períod. If the deposítor wants then a matured
FDR may be renewed for any of the períods mentíoned above. The deposít
wííí be automatícaííy renewed from the date of expíry for a períod of three
months at the rate of profít appíícabíe on the renewaí íf the deposítor does
not gíve any ínstructíon to the branch wíthín on month of the date of maturíty
of the FDR. If the deposítor encashment the deposít before maturíty no profít
wííí be paíd to the cííent. Recentíy Bangíadesh bank has decíded that the
ínterest rate of FDR wííí ííe between 9% to 11%. For thís reason the Assets
Líabíííty commíttee of the bank has revísed ínterest rate of FDR. The new
rates are gíven beíow:
17
Interest of "%):
Períod Rate of ínterest
1 Month 9%
3 Month 10%
6 Month 9.75% to 10%
1 Year 9.5% to 10%
Tabíe 06: Interest of FDR
2.22. !che/es offered 0y JB*:
|BL has íntroduced some scheme for íts customers whích not oníy íncrease
the profítabíííty of the bank but aíso íncrease the savíng tendency of the
customer. These are gíven beíow:
• -onth:y !a9in4s !che/e =-!!.:
Savíngs ís the best fríend ín bad days. Smaíí savíngs can buííd up a
prosperous future. Savíngs can meet up any emergencíes. |BL has íntroduced
Monthíy Savíngs Scheme (MSS) that aííows ít cííents to save on a monthíy
basís and get a handsome return upon maturíty. The concerned customer
can avaíí íoan facíííty up to 80% of the deposíted amount.
• Education !a9in4s !che/e:
Educatíon ís one of the basíc needs of every cítízen. Every parents want
proper educatíon to theír chíídren. Educatíon ís the prerequísíte for the socío-
economíc deveíopment of a country. Hígher educatíon may be híndered due
to the change of economíc condítíon of theír parents. To soíve thís probíem
|BL has íntroduced "Educatíon Savíngs Scheme" whích offers íts cííents to
buííd up cheríshed fund by monthíy deposít of smaíí amount at cííent
affordabíe capacíty. The customer has the optíon for wíthdrawíng totaí
accumuíated amount íncíudíng príncípaí on maturíty date at a tíme or takíng
monthíy benefít duríng the next fíve years from the date of maturíty keepíng
the príncípaí íntact.
• -arria4e %eposit !che/e:
18
Marríage of chíídren especíaííy daughter ís a matter of great concern ín the
context of our country. It ínvoíves expense of consíderabíe amount. Practícaí
parents make effort for graduaí buíídíng of fund as per the capacíty to meet
the expenses. Parents get reííef and feeí secure íf they can arrange the
necessary fund for theír chíídren marríage, no matter whether they can
survíve or not.
By consíderíng thís factor |BL has íntroduced marríage deposít scheme whích
offer íts cííents to buííd up cheríshed fund by monthíy deposít of smaíí
amount at cííent capabíííty. It grows very fast at hígh rate of ínterest yíeídíng
a sízeabíe amount on maturíty.
• *akhpati %eposit:
To become "Lakhpatí" ís símpíy a dream for the most of the peopíe of
Bangíadesh especíaííy to the íower and íower míddíe íncome group. Keepíng
that ín mínd |BL has íntroduced "Lakhpatí Deposít Scheme" whích has
fíexíbíííty ín report of maturíty and monthíy ínstaííment as per affordabíe
capacíty.
• >otipati %eposit !che/e:
Kotípatí deposít scheme ís one of the schemes of |BL. It ís reaíízabíe for hígh
íncome group who have strong determínatíon and savíngs habít. |BL has
íntroduced "Kotípatí
Deposít Scheme" offeríng the savíngs pían fít to your íncome and executes
your dream to be a Kotípatí by monthíy deposít at cííent affordabíe capabíííty.
Monthíy Savíngs Scheme, Educatíon Savíngs Scheme, Marríage Deposít
Scheme, Lakhpatí and Kotípatí Deposít Scheme have the foííowíng facííítíes:
These types of deposít account can be opened at any branch of |BL.
They can deposít at any branch of |BL and the same through on ííne bankíng
Monthíy ínstaííment can be automatícaííy coííected from cííent savíngs
account maíntaíned wíth |BL.
Instaííment amount shaíí be deposíted wíthín 20
th
day of each month. If the
20
th
ís hoííday then customer may aíso ínstaííments on next workíng day.
No íoan facííítíes wííí be aííowed from any other banks/ fínancíaí ínstítutíon
agaínst the deposíted amount except |BL.
19
• -onth:y Benefit !che/e:
|amuna bank íímíted has íntroduced Monthíy Benefít Scheme for the prudent
person havíng ready cash and desíríng to have fíxed íncome on monthíy basís
out of ít wíthout takíng rísk of íoss and wíthout cashíng the príncípaí amount.
Thís scheme offers híghest return wíth zero rísk.
Characteristics:
-Mínímum Deposít: Tk. 1 íac.
-Maxímum Deposít: Any amount muítípíe of Tk. 1 íac.
-After openíng the account the profít eíement wííí be deposíted ín that
account.
-Upon maturíty the term may be renewed for the next tenure.
-These scheme were effectíve on 18
th
Apríí 2009, due to Bangíadesh Bank
decísíon -|BL have stopped these scheme temporary. Soon they wííí revísíng
the ínterest rate of the scheme and contínue the scheme agaín.
• %ou0:eATrip:e Gro5th %eposit !che/e:
|BL has íntroduced Doubíe/Trípíe Growth deposít scheme that offers íts
customer to make doubíe or trípíe money wíthín seven years and eíeven
years respectíveíy resuítíng a hígh rate of ínterest.
Characteristics:
-Mínímum Deposít: Tk. 1 Lac.
-Maxímum Deposít: Any amount muítípíe of Tk. 1 Lac.
-Overdraft Facíííty: The concerned customer can avaíí íoan facíííty up to 80%
of the deposíted amount.
-Features of the Scheme:
-oney inc:udin4 interest paya0:e at /aturity
20
Deposít After 5 years 7 months(Doubíe) After 8 years 5 months(trípíe)
100000 200000 300000
200000 400000 600000
500000 1000000 1500000
Interest rate-12.50%
Tabíe 07- Feature of the scheme
Ter/s ? Conditions:
If customer faíís to deposít 3 consecutíve ínstaííment then bank reserves the
ríght to cíose the account.
Customer wííí not get any profít íf the scheme ís cíosed wíthín 6-months. If tít
ís cíosed after 6-míonths then cííent wííí get deposíted amount aíong wíth
ínterest rate. The rate ís normaí savíngs rate up to the cíosure tíme.
Líke other scheme customers have to foííow the government ruíes and
reguíatíons. They aíso have to foííow the Bangíadesh Bank ruíes.
2.2,. 'sset +roducts:
• "unded:
Funded means those type products ín whích bank dírectíy fund. Thís type of
product ís províded agaínst mortgage, guarantee prevíous performances. For
exampíe: Overdraft, Term Loan, Tíme Loan, Consumer credít, , Professíonaí
Loan and Smaíí Busíness Loan.
• (on "unded:
Non funded means when the bank provídes thís type of servíce bank need
not províde ímmedíate fund. It ís a hígh íncome source for the bank. But the
bank has to províde hígh care when províde such type of servíces to the
cííents. These types of products are LC, Bank Guarantee. Díscussíon on LC ís
íater on Foreígn Exchange part.
21
• -i:estones in the de9e:op/ent of Ja/una Bank *i/ited:
2001 - |amuna Bank Límíted (|BL) ís a Bankíng Company regístered under the
Companíes Act, 1994 wíth íts Head Offíce at Chíní Shíípa Bhaban, 3, Dííkusha
C/A, Dhaka-1000. The Bank started íts operatíon from 3rd |une 2001.
2004 - IPO íssued and traded ín both Dhaka & Chíttagong Stock Exchange
2005 - |amuna Bank has íaunched íts Onííne Bankíng servíces on Apríí 05,
2005
2006 - |amuna Bank Límíted has ínstaííed íts fírst O-cash ATM.
2007 - Approved the new attractíve saíary structure to compete the top
graded banks.
2008 - |amuna Bank íssue VISA card.
2009- |amuna bank deveíoped foreígn remíttance system.
Every Branch of |amuna Bank ís dívíded ínto varíous departments nameíy as
foííows:
1.Generaí Bankíng department.
2. Loan and Advances department.Accounts Sectíon
3.Foreígn exchange department
4,Deposít Sectíon
5.Account openíng Sectíon
6.Cash Sectíon
7.Bííís coííectíon and Cíearíng Sectíon
8.Remíttance and Pay order Sectío.
22

Bank (er)ices
,eneral Banking Credit"-d)ance Foreign .%change
Di$$erent accounts
Open# issues o$ DD+
TT+ PO# Clearing FD#
di$$erent (cheme etc+
(OD ,eneral
!oan# /ouse &uilding
!oan# !ease $inance#
/ire purchase# CC
hypo# (ta$$ loan etc+
.%port# Import#
remittance
23
C#'+TE)- 0,
*GENERAL BANKING PROCEDURE OF
|AMUNA BANK, AGRABAD BRANCH*
3.1. Generaí Bankíng department of |BL:
Generaí bankíng ís the startíng poínt and ´Heart’ of aíí kínds of bankíng
operatíons. It provídes day to day servíces to íts cííents. The core functíon of
bank ís performíng by thís department. In |amuna Bank Límíted Agrabad
Branch deposít sectíon, cash coííectíon, cíearíng and accounts sectíon are
under generaí bankíng department.
Generaí bankíng department does the most ímportant and basíc work of the
banks. Aíí other departments are íínked wíth thís department. It píays a vítaí
roíe ín deposít mobííízatíon of the branch. For proper functíoníng and
exceííent customer servíce thís department ís dívíded ínto varíous sectíons
nameíy as foííows:
,.2.%eposit !ection:
Deposít sectíon ís one of the ímportant parts of Generaí Bankíng Sectíon. It ís
fuííy computerízed. Deposít sectíon offícer maíntaíns the account number of
aíí customers of the bank. They used dífferent code number for dífferent
account. Through thís sectíon deposítor can know present posítíon of hís or
her account. The offícer makes postíng three types of transactíon such as
cash, cíearíng and transfer. It performs the foííowíng tasks:
-Post aíí kínds of transactíon
-Províde on demand report
-Cheque maíntenance
-Preparatíon of day transactíon posítíon
-Preparatíon of cíosíng monthíy transactíon.
24
,., %ifferent types of 'ccount
openin4 !ection:
Thís sectíon maíníy deaís wíth dífferent types of account openíng. It aíso
deaís wíth the íssuíng of cheque books and dífferent account openers ínquíry.
A customer can open and cíose dífferent types of accounts through thís
department.
Co/p:iance Guide:ines:
In case of account openíng offícer have to foííow some compííance guídeíínes.
These are gíven beíow:
Identification:
As per Sectíon 19 KA of the Preventíon of Money Launderíng Act 2002
requíres aíí ínstítutíon to seek satísfactory evídence of the ídentíty of those
wíth whom they deaí and aíso as per Bangíadesh Bank guídeíínes. Customer
present address shouíd be verífíed physícaííy or íssuíng a thanks íetter
regístered wíth the Acknowíedge Due then the banks satísfy about the
present address of the cííents.
%ec:aration:
In the decíaratíon form customer need to mentíon the monthíy and yearíy
transfer voíume whích wííí be matched wíth the transactíon profííe.
Transaction +rofi:e:
In the TP fíve ma|or portíons must have to be mentíoned cíearíy. Reíatíng
offícer of the bank wííí verífy and monítor the transactíon mentíoned ín the
TP. If any ma|or change ín transactíon a cíarífícatíon shouíd have to be kept ín
abnormaí transactíon fííe and exístíng TP wííí have to be change. In order to
be abíe to |udge whether a transactíon ís or not suspícíous, ínstítutíons need
to have a cíear understandíng of the busíness carríed on by theír customer
25
>no5 your custo/er =>&C.:
As per Bangíadesh Bank guídeíínes KYC ís one more addítíonaí documents .By
thís document bank wííí be known customers detaíí and rísk ínvoívement of
customer. If a customer has estabííshed an account usíng a faíse ídentífy, she
may be doíng so to defraud the ínstítutíon ítseíf or to ensure that she can not
be traced to the críme the proceeds of whích the ínstítutíon ís beíng used to
money íaunder.
A faíse name, address wííí usuaííy mean that enforcement agencíes can not
trace the customer íf he ís needed for íntervíew of an ínvestígatíon.
Consideration for account openin4:
The offícer shouíd aíso consíder the foííowíng factor ín case of account
openíng:
Introduction:
Introductíon of an account hoíder ís must. Because openíng of an account
banker must satísfy hímseíf about the ídentíty of the proposed account
opener. Bank has been accustomed to obtaíníng an íntroductíon for each
account from a responsíbíe exístíng account hoíder known to hím, whose
account ís operatíve wíth the acceptabíe baíance ín hís account whích
satísfíes the banker.
!peci/en si4nature:
One or more specímen sígnatures of the account opener’s are obtaíned ín a
prescríbed card for record keepíng by the banker. These are the sígnature the
banker recogníze the purpose of customer’s sígníng cheque on account and
íssue other ínstructíon to the banker.
,.1. Genera: +ractice for ':: type of
'ccount:
26
+rocedure for issuin4 of a check0ook:
If any one opens a Savíngs or Current account wíth |BL then he or she need
cheque book for transactíon purpose. For íssuíng a cheque book one need to
go through some procedure. These are gíven beíow:
For the fírst cheque book customer has to appíy ín a specífíed form aíong wíth
the thanks íetter whích he or she has receíved after openíng the account.
Then for the
New cheque book the cííents have to appíy through the requísítíon sííp
suppííed wíth the prevíous check book.
The íeaves of the cheque book whích ís under íssue shaíí be counted to
ensure that aíí the íeaves and the bank requísítíon sííp are íntact.
The name and account number shaíí be wrítten on the cover page of the
cheque book. The account number of the cííent shaíí be entered on aíí the
íeaves of the cheque book aíong wíth íts requísítíon sííp.
Next the name and account number of the customer shaíí ín the cheque book
regíster agaínst the partícuíar cheque book seríes.
Offícer who ís ín charge of the deposít department sígn the regíster book
aíong wíth the requísítíon sííp.
Fínaííy the cheque book ís handed over to the customer after takíng
acknowíedgement on the requísítíon sííp and the regíster book.
Offícer has to contaíníng the requísítíon sííp ín a cover fííe. It shaíí be
effectíveíy preserved as vouchers. If the íedger keeper found any defect he
wííí make a remark to that effect on the requísítíon sííp and forward ít to the
canceííatíon offícer to decíde whether a new cheque book shouíd íssued or
not.
+rocedure 5hen check0ook is :ost:
If the cheque book ís íost then a guarantee form ís taken from the account
hoíder, where he ídentífíes the bank ín thís regard. For íssuíng a new cheque
book a new requísítíon sííp ís gíven to the account hoíder. Fresh cheque book
ínstead of the íost one shouíd be íssued after verífyíng the sígnature of the
account hoíder from the specímen sígnature card oníy príor approvaí of the
manager or sub manager.
27
C:osin4 of an 'AC:
Customer may cíose out hís A/C at any tíme by submíttíng an appíícatíon to
the branch. The customer shouíd be asked to draw the fínaí cheque for the
amount standíng to the credít of hís or her A/C íess the amount of cíosíng and
or other íncídentaí charges and surrenders unused cheque. The account
shouíd be debíted for the accountíng cíosíng charges etc. and an authorízed
offícer to the branch shouíd destroy unused cheque íeaves. The stoppage of
the operatíon of the account can be under foííowíng círcumstances.
Notíce gíven by the customer hímseíf.
Death of Customer.
Customer ínsaníty and ínsoívency.
Garníshee order
Transfer of an 'AC:
Account hoíder may transfer hís account form one branch to another
branch .For thís he must appíy to the manager of the branch where he ís
maíntaíníng account. Then manager of íocaí offíce sends a request íetter to
the manager of the branch where the account hoíder wants to transfer hís
account .Wíth hís request he sends orígínaí copy of account openíng
appíícatíon and specímen sígnature card and
photocopy for appíícatíon for transfer the account wíth the baíance remaíned
account.
'ccount inBuiry:
Customer can obtaín the statement of hís account by the submíssíon of an
appíícatíon ín prescríbed baíance ínquíry receípt. |BL not charges any amount
of thís statement. Bank normaííy íssues statement twíce a year.
'ccount B:ock:
The task of account bíock ís done as per the order of the cííent or order of the
court or order by the centraí bank.
28
Inacti9eC %or/ant:
If there ís no transactíon happened ís account duríng past one year then the
account ís beíng ínactíve as per the ruíes of Bangíadesh. Thís ís caííed
dormant account. A report has been sent to the Bangíadesh bank reíatíng thís
matter and after a certaín períod the centraí bank takes controí over thís
account.
Cash section:
As a fínancíaí ínstítutíon banks have to accept surpíus money from the peopíe
as deposít and gíve them opportuníty to wíthdrawaí the same money by
cheque etc. but among the bankíng actívítíes cash department píays an
ímportant roíe. It does the maín functíon of a commercíaí bank that ís
receívíng the deposít and payíng the cash on demand. As thís department
deaís dírectíy wíth the customers the reputatíon of the bank much depends
on ít.
,.2.Cash %epart/ent:
Cash sectíon of any bank píays a vítaí roíe ín generaí bankíng procedure,
because ít deaís wíth the most ííquíd assets. There ís severaí counters work
símuítaneousíy ín cash sectíon of |amuna Bank, Motí|heeí Branch. There are
two eíectroníc countíng machínes by whích a huge amount of cash money
can be counted wíthín a few mínutes and ít aíso ensure the zero percent
countíng machíne. Thís sectíon deaís wíth aíí types of negotíabíe ínstrument
and íncíudes vauít, used as the store of cash, ínstrument.
"unction of cash depart/ent:
Cash payment Cash payment ís made oníy agaínst cheque. Thís ís
the uníque functíon of the bankíng system whích ís
known as "payment on demand". It makes payment
oníy agaínst íts prínted vaííd cheque.
Cash Receípt It receíves deposíts from the deposítors ín form of
cash. So ít ís the "mobííízatíon unít" of the bankíng
29
system. It coííects money oníy íts receípt forms.
Tabíe 8: Functíon of cash department
,.6.Types of 0i:: for co::ection:
In5ard Bi::s for Co::ection =IBC.:
When the banks coííect bííís as an agent of the coííectíng branch, the system
ís known as IBC. In thís case the bank wííí work as an agent of the coííectíon
bank. The branch receíves a forwardíng íetter and the bííí.
Next steps are gíven beíow:
Enter the transactíon ín the IBC regíster.
An IBC number ís gíven on the bííí.
Endorsement gíven "Our branch endorsement confírmed"
The ínstrument ís sent for cíearíng.
If díshonored, the ínstrument ís returned to the coííectíng branch aíong wíth a
return memo.
Out5ard Bi::s for Co::ection =OBC.:
If the bííí ís beyond the cíearíng range then ít ís coííected by OBC mechanísm.
Customer deposít cheque, drafts etc. for coííectíon, attachíng wíth theír
deposít sííp ínstrument wíthín the range of cíearíng are coííected through
íocaí cíearíng house but the other whích are outsíde the cíearíng range are
coííected through thís mechanísm. At fírst the cíearíng offícer has to do some
prímary tasks that are very ímportant. Those are gíven beíow:
Name of the payees must be same both at deposít sííp and on cheque.
Account number ís correctíy fuífíííed.
Amount wrítten on deposít sííp and on cheque ís same.
Date on deposít and cheque.
Then the offícer crosses the cheque and endorses the same. It ís a must to
cíear the cheque through cíearíng house. Then the banker gíves ínput of
30
cheques detaíís at software províded by the Bangíadesh bank whích ís
mandatory. Then bank takes a vaíídatíon hardcopy. Vaíídatíon hardcopy ís
stored at bank and a fíoppy dísk has been send to the príncípaí branch.
Suppose customer of |BL Motí|heeí branch deposítíng a cheque of |anata bank
of Chíttagong branch. As a coííectíng bank |BL íocaí offíce wííí perform the
beíow task.
+rocedure:
Bank deposítíng the cheque aíong wíth deposít sííp.
Crossíng of the cheque are done índícatíng as coííectíng bank.
Endorsement "payee’s A/C wííí be credíted on reaíízatíon" ís gíven.
Entríes are gíven ín the outward cíearíng regíster.
Procedure of coííectíon process ís gíven beíow:
31
,.7. C:earin4:
Coííectíng bank can coííect ít eíther by íts branch or by the drawer’s bank.
They wííí forward the bííí then to that partícuíar branch. OBC number wííí gíve
on the forwardíng íetter. Foííowíng procedure wííí take píace ín case of the
beíow two cases:
Bííís coííected through Branch or
Bííí coííected through another bank of thís are
Accordíng to the Artícíe 37(2) of Bangíadesh Bank Order 1972, the banks
whích are a member of the cíearíng house are caííed ad Scheduíed Banks
.The Scheduíed Banks cíear the cheques drawn upon one another through the
cíearíng house. Thís ís an arrangement by the centraí bank where everyday
the representatíve of the member banks síts to cíear the cheques. For
cíearíng there ís a department ín every bank. Thís department receíves
cheques, drafts and ííke ínstruments from íts customer for the purpose of
coííectíon wíth a deposít sííp over the counter credítíng theír accounts
.Cíearíng of cheque ís done through the cíearíng house ín Bangíadesh Bank
.Every day the fírst hour starts at 10.30am and returns house at 5:00 pm.
"unction in the c:earin4 house:
The cíearíng house ís a íegísíatíve body of the íocaííy operatíng scheduíed
banks for exchange of cheques, drafts and other demand ínstrument drawn
on each other and receíved from theír respectíve customers for coííectíon.
The house meets at the appoínted hour on aíí workíng days under the
chaírmanshíp of the centraí bank. The cíearíng house síts twíce ín a workíng
day.
The member submíts the cíaímabíe cheques ín the respectíve desk of the
banks and více-versa.
Consequentíy, the debít and credít entríes are gíven.
Fínaííy, the debít summatíon and the credít summatíon are caícuíated. Then
the banks cíear the baíances through the cheque of Bangíadesh Bank.
%ishonor of CheBue:
32
|BL sends wíth cheque return memo to the customer statíng the reason íf the
cheque ís díshonored. |amuna Bank Límíted charges some money as penaíty
íf the cheque ís díshonored because of ínsuffícíent of funds.
,.;. )e/ittance and +ay order
!ection:
If we consíder the present sítuatíon of our country then carryíng cash ís not
safety and rísky. For safety purpose one can use bankíng channeí and ensure
the maxímum securíty of theír money. That’s why money can be transferred
from one píace to another through bankíng channeí. Thís ís caííed remíttance.
Remíttances of funds are one of the most ímportant aspects of the
commercíaí banks ín renderíng servíces to íts customer.
Sendíng money from one píace to another píace for the customer ís another
ímportant servíce of banks and thís servíce ís an ímportant part of countríes
payment system. For thís servíce peopíe especíaííy busínessman can transfer
funds one píace to another very quíckíy.
-oney Gra/ /oney transfer:
|amuna Bank ís a deaíer of Money Gram Money Transfer. It pays the money
remítted by the nonresídent Bangíadeshís to theír reíatíves. The tasks are
done by the sateíííte íínk and pay the benefícíary after successfuííy
ídentífícatíon proof.
+ay order:
Pay order ís an ínstrument that ís íssued and paíd from the same branch of
the bank to pay a certaín sum of money to the person there on or to hís
order. Unííke cheque, there ís no possíbíííty of díshonoríng pay order because
before íssuíng pay order bank takes out money of the pay order ín advance.
Pay order ís íssued ín the same cíty. Thís ínstrument ís generaííy used ín
tender, bíds, earnest money etc. The procedure for seíííng pay order ís as
foííows:
-Purchaser must be an accounthoíder of |BL. But ín specíaí cases |ob seeker
and student can íssue a pay order from thís branch.
-Cííent fírst deposít the money wíth P.O appíícatíon form.
-Next offícer gíve necessary entry ín the bííís payabíe regíster.
-Then prepare the P.O ínstrument carefuííy.
33
-After that ít has been sígn and approved by hígher authoríty.
-Sígnature of customer ís taken ín the counter part of the ínstrument. Fín aííy
ít deíívered to the customer.
-odes of purchasin4 +ay Order:
§ By cash
§ By transfer of money.
§ By account.
Co//ission for +ay Order:
Totaí amount of PO Commíssíon Vat
Up to TK. 10000 15 3
TK. 10,001 - TK.100000 25 4
TK.100,001 - TK. 500,000 40 6
TK. 500,000 to above 50 8
Tabíe 9: Commíssíon for Pay Order
Co::ection of +ay Order:
A customer of Dhaka bank who ís the payee a P.O. wííí deposít ít for coííectíon
The ínstrument ís gíven to the cíearíng that wííí píace ít to the íssuíng bank ín
the cíearíng house. Before píacement |BL as a coííectíng bank gíves
necessary endorsement.
+ay order issuin4 process:
34
35
,.<. %e/and %raft:
The demand draft (DD) ís a negotíabíe ínstrument under sectíon 85(A) of the
negotíabíe ínstrument act -1881. DD ís íssued ín favor of the customer who
maíntaíns an account wíth thís branch. Demand Draft ís an order of íssuíng
bank on another branch of the same bank to pay specífíed some of money to
the payee on demand. It ís generaííy íssued when the customer wants to
remít money ín any píace, whích ís outsíde the cíearíng house area of íssuíng
bank.
+rocedure for issuin4 %e/and %raft:
A DD appíícatíon form ís gíven to the customer. Customer fííís up the form
whích íncíudes the name of the drawer, name of the payee, amount of money
to be sent, name of the drawee branch, sígnature and address of the drawer.
The customer may pay ín cash or may transfer the amount from hís/her
account. After the moneyís paíd and the form ís seaíed and sígned, ít ís gíven
to the DD íssuíng desk. DD bíock has two parts one for bank and another for
the customer. Bank’s part contaíns íssuíng date wíth drawer’s name and sum
of the money and name of the drawee branch. Customer’s part contaíns the
name of the payee, íssuíng date, sum of the money and drawee branch.
After fííííng up the DD, form ís gíven ín the DD íssue regíster and at the same
tíme the bank íssue a DD confírmatíon sííp addressíng the drawee branch
.Thís confírmatíon sííp ís entered ínto the DD advíce íssue regíster and a
number ís put on the confírmatíon sííp from the same resíster. Letter on the
bank maíí thís sííp to the drawee branch. Then the DD from ís seaíed wíth a
protectoraí machíne to protect from materíaí aíteratíon. Next the customer
sígns on the back of the DD and takes hím/her part of DD.
+ay/ent of %e/and %raft:
For payment of demand draft payíng branch fírst has to confírm that the
Demand Draft ís not fake one. Fírst bank check the "Test Code" mentíoned
on the draft. If "Test Code" agrees then beííeve the DD ís not bogus and
authoríty makes payment. For further confírmatíon the íssuíng bank sends an
advíce about the DD to the payíng branch. Wíthout advíce the payíng branch
does not make payment.
)o:e of a dra5n on Bank:
36
The I.B.C.A. (Inter Branch Credít Advíce) díspatched to drawn on branch.
Issuíng an I.B.C.A. ímpííes that the branch ís beíng credíted to whom ít ís
íssued. I.B.C.A. contaín the controíííng number .Lodgment ís gíven after
receívíng an I.B.C.A. Necessary entry ís gíven ín a regíster caííed "DD-In-
Issuíng branch. Controíííng number of the I.B.C.A. shouíd match the seríaí
number of thís DD ín regíster.
Cance::ation of a de/and draft:
If the hoíder of the ínstrument wants to canceí ít, he shouíd submít a request
íetter ín thís regard. Issuíng branch then sends I.B.D.A. to the drawn on
branch agaínst the I.B.C.A. whích was sent prevíousíy.
%ifferent 0et5een +ay order ? %e/and %raft:
There are some dífferences between pay order & demand draft, whích are
gíven beíow:
-In case of Demand Draft both the payer and payee need to maíntaín
accounts. But there ís no certaín ruíe for pay order.
-PO ís used ín the same cíearíng area; DD ís used for aíí kínds. DD cannot be
done ín the same cíearíng area.
-DD ís drawn on a certaín bank offíce. But there ís on certaín ruíes for PO.
'ccounts section:
Thís ís a very much crucíaí department for each branch of a commercíaí
bank. Records of aíí the transactíons of every department are kept as weíí
wíth other respectíve branches Accountíng department verífíes aíí fínancíaí
amounts and contents of transactíons. If any díscrepancy aríses regardíng
any transactíon thís depart report to the concerned department.
,.10. Task of 'ccounts depart/ent:
37
Accounts píay an essentíaí roíe ín commercíaí bankíng. In prívate bankíng
sector accounts department of |BL perform ít’s very properíy. The actívítíes of
accounts department are gíven beíow:
Budgetíng for branch.
Make saíary statement and pay saíary.
Pay aíí expendíture on behaíf of the branch.
Make charges for dífferent types of dutíes.
Branch to branch fund remíttance and support for accountíng treatment.
Prepare statement for reportíng purpose.
Record aíí transactíon ín the generaí and subsídíary íedger.
Record aíí transactíon ín the daííy cash book.
Prepare daííy fund functíon, weekíy posítíon, períodíc statement of affaírs etc.
Genera: :ed4er =%ai:y tasks.:
Affaírs prínt out takíng and daííy posítíon prepare. Offícer wííí prepare daííy
generaí íedger. (As |amuna bank has íts own computerízed network system ít
ís prepared automatícaííy).
%ai:y +osition =%ai:y tasks.:
A daííy posítíon report ís prepared everyday. Informatíon ís coííected from
generaí íedger. It has to send to head offíce or keep ín safe for future use. In
a daííy posítíon report there are generaííy deposíts, dífferent types of bííí,
íoan and advances, cash ín hand, cash ín ATM etc.
oucher keepin4 =%ai:y tasks.:
Keepíng aíí vouchers date wíse aíong wíth supportíng ínstruments. Vouchers
and reíevant supportíng ínstruments are sendíng to the account department
from aíí departments. Aíí the vouchers are keepíng ín safety píace at íeast 15
years.
+rofit and :oss Ca:cu:ation =+eriodica: task.:
38
At the end of each month profít and íoss account ís prepared and send to the
head offíce. At the end of year cumuíatíve totaí íoss and profít ís prepared.
':: inco/e ? E@penditure /onth:y /onitorin4:
Aíí íncome and expendíture are done by the accounts department. They aíso
monítor the íncome and the expendíture.
Branch 0ud4et /onitorin4:
The budget of a branch ís prepared by the HEAD Offíce. And ít ís monítored
by the account department.
!tate/ents +repared 0y the Branch:
Weekíy fund posítíon.
Monthíy Sector Corporatíon.
Monthíy Scheduíe Bank Statement-1 (SBS-1)
Ouarteríy Scheduíe Bank Statement-2 (SBS-2)
Ouarteríy statement of exchange of torn/dírty notes
Haíf-yearíy scheduíe bank statement-3 (SBS-3)
Haíf yearíy deposít ínsurance pensíon scheme
Branch posítíon daííy, monthíy and yearíy.
Prepared aíí kínds of voucher.
---------------------------------
39
C#'+TE)-01
'('*&!I! ? "I(%I(G!
1.1. !DOT 'na:ysis of JB*:
SWOT anaíysís ís the compíete study of an organízatíon’s exposure and
potentíaí ín perspectíve of íts Strength, Weakness, Opportuníty and Threat. It
assísts theorga -nízatíon to make theír exístíng ííne of performance and aíso
forecast the future to ímprove theír performance ín comparíson to theír
competítors. It aíso heíps the organízatíon to understand the present
sítuatíon of the busíness and aíso consídered as an ímportant tooí for makíng
changes ín the strategíc management of the organízatíon.

(0OT
-nalysis
Internal
Factors
.%ternal
Factors
(trength 0eakness Opportunity Threats
!tren4th of JB*:
Experíenced top management for operatíng the busíness smoothíy. The
authoríty has empíoyed some experíenced bankers who have great
experíenced ín thís professíon.
40
To compete wíth the competítor the bank has satísfactory capítaí base for
runníng the busíness
Due to íts carefuí decísíon íow ínfectíon ín íoan exposure.
Prospectíve IT ínfrastructure whích heíp to maíntaín the onííne bankíng
servíces.
|amuna Bank Límíted ís aíways engaged ín a varíety of corporate socíaí
actívítíes ín the country.
For ensuríng the maxímum íeveí of customer satísfactíon and earníng huge
profít |BL ís expandíng the number of branches ín new íocatíon.
|BL has correspondent reíatíonshíp wíth íeadíng ínternatíonaí banks ín 117
countríes to cover aíí ímportant fínancíaí centers of the gíobe.
Deakness of JB*:
Market ís saturated because many competítors aíready exíst ín the market so
they have to face íots of competítíon from the exístíng competítor bank.
Aíready many bank estabííshed theír posítíon ín the market so as a íater
entrant they need tíme to estabíísh íts posítíon ín the market. As a resuít they
have íímíted market share
For makíng profít sometímes they exposure to íarge íoan whích ís reaííy rísky
for theír busíness because theír source of capítaí ís the peopíe deposít.
The authoríty has excessíve dependency on term deposít whích decreases
theír profítabíííty íeveí.
Weak fund management
They gíve hígh ínterest rate for gaíníng fund as a resuít ít íncreases the cost
of fund and decrease the profítabíííty íeveí.
Isíamíc Branch funds are not ríng fenced.
Opportunities of JB*:
Deveíopment of a country depends on both prívate and pubííc sector. For thís
reason government gíve emphasís on the deveíopment of prívate sector. As a
resuít reguíatory envíronment favoríng prívate sector.
41
Aíthough Credít card ís not a new concept ín out country but there ís a huge
potentíaííty for capturíng thís market. So |BL can take thís opportuníty.
Smaíí and medíum enterpríse ís one of the bíg opportunítíes for |BL, because
day by day the numbers of smaíí and medíum are íncreasíng and they are
one of the great sources of profít.
Sínce |BL ís not an oíd bank and has íímíted number of branches aíí over the
country, so ít has the opportuníty to íncrease the number of branch aíí over
the country.
Now a day’s number of banks engaged ín merchant bankíng so |BL has the
opportuníty to expand theír busíness ín thís ííne.
Threats of JB*:
Due to gíobaí economíc crísís Bangíadesh Bank have decíded that aíí the wííí
keep theír íoan rate wíthín 13% as a resuít ít wííí íncrease theír profítabíe
íeveí.
|BL has to revíse íts ínterest rate for deposít purpose as a resuít they have to
face competítíon ín case of coííectíng deposít.
Some other banks offer great benefít for coííectíng the deposít whích ís a
great threat for |BL. Líke Daííy basís ínterest on deposít offered by HSBC
Bankíng ís one of the profítabíe busínesses as a resuít the numbers of banks
are íncreasíng graduaííy. As a resuít ít íncreased competítíon ín the market
for quaííty assets.
Sometímes they face suppíy gap of foreígn currency.
Overaíí ííquídíty crísís ín market
From the anaíysís we can easííy fínd out the strength and weakness of the
bank whích wííí heíp to compete wíth others bank. It aíso heíps to fínd out the
opportuníty and threats of the bank whích ís a externaí factor. Wíthout
consíderíng thís factor bank can’t compete ín the market.
1.2. "inancia: perfor/ance of JB*:
'uthoriEed capita: and +aid up Capita::
42
Authorízed capítaí of the bank remaíns unchanged at TK. 1600 Mííííon ín the
year 2007and the paíd up capítaí of the Bank ís TK. 1, 07, 25000 ordínary
shares of TK. 100 each. Except 2005 the number of ordínary share ís same
for both years. Authorízed capítaí ís Tk.5600.00 mííííon and paíd up capítaí ís
Tk.3000.71 mííííon as of 31
st
December 2009.
The data ta0:e 5ith 4raph is 4i9en 0e:o5:
)eser9e fund and other reser9e:
The totaí reserve was TK. 487.46 mííííon ín the year 2005; ín 2006 ít was
íncreased on TK. 629.33 mííííon so the dífference ís 141.87 mííííon. In 2008
ít was reached at TK. 703.67 mííííon. ín 2010 ít reached to 990 mííííon.
Here we can say that reserve fund of |BL ís íncreasíng graduaííy. Data tabíe
aíong wíth graph are gíven beíow:
Year Amount(TK In Mííííon)
2007 629.33
2008 703.67
2010 990.00
Tabíe 01: Reserve fund of |BL:
43
Fígure 01: Reserve fund and other reserve of |BL
%eposit of JB*:
Deposít ís one of the ímportant aspects of bankíng sector. It ís termed as the
íífe bíood of a commercíaí bankíng. |BL was abíe to coííect a totaí deposít of
TK. 14454.13 mííííon. It was abíe to coííect a totaí deposít of TK. 17284.81
mííííon ín year 2006. Year 2007 ít coííected totaí deposít of TK. 17491.34
mííííon. The performance of deposít coííectíon ís ímprovíng graduaííy. To
present thís sítuatíon tabíe aíong wíth graph are gíven beíow:
Year Amount of Deposít (TK. In Mííííon)
2008 17491.34
2009 18285.81
2010 22122.01
Tabíe 02: Deposít posítíon of |BL
44
Fígure 02: Deposít posítíon of |BL
In9est/ent position of JB*:
The totaí amount of ínvestment ín 2007 ís TK. 2037.84 mííííon. In 2008 the
totaí amount of ínvestment becomes TK. 2552.67 mííííon. But ín 2009 ít
decrease and become 2550.59 mííííon.But ín 2010 ít got a boost and reached
to 3667.23 mííííon. The ínvestment portfoíío comprísíng Government Treasury
bííís etc. contríbuted maíníy towards fuífíííment’s of Statutory Líquídíty
Requírements.
Year Amount of Investment (TK. In Mííííon)
2008 2552.67
2009 2550.59
2010 3667.23
Tabíe 03: Investment posítíon of |BL
45
Fígure o3: Investment posítíon of |BL
1., "indin4s of the report:
Duríng the ínternshíp períod as an íntern I have found some poínt about thís
bank whích ís gíven beíow:
*The workíng condítíon or the workíng facíííty for the empíoyee ís quíte good.
*Improper aííocatíon of empíoyees and the number of empíoyee ín the branch
ís few.
*Number of ATM booth ís very íow. As a resuít they have to use other bank
booth and bear the extra charges.
*The branch manager, offícer and executíve who have achíeved target ín aíí
respect may be rewarded.
*Use of modern technoíogy such as computerízatíon.
*Poíítícaí ínterference has to be avoíded ín seíectíon of empíoyee. Because
customers are very sensítíve ín servíce marketíng. If they don’t get ríght
servíce at ríght tíme at ríght píace by the ríght person they wííí swítch over ín
other bank.
*From the study ít has been found that the prícíng poíícy of |BL ís not much
satísfactory. For thís reason they shouíd híre marketíng specíaíísts who wííí
heíp them to deveíop effectíve servíce strategy
46
*For aíí types of work thís branch ís depended on head offíce, so they can’t
gíve prompt servíces to íts customers.
*Theír on-ííne servíce ís quíte satísfactory.
*Theír securíty system ís quíte good.
*Interpersonaí reíatíonshíp of the empíoyees ís not satísfactory íeveí.
*Totaí profít and deposít amount íncreased of |BL Agrabad Branch than
before.
*Totaí advances aíso íncreases that mean company’s asset aíso has been
íncreased.
*Due to absence of íegaí framework of |BL, the bank ís facíng probíems ín íts
transactíons to handíe íts vaíue added customers.
*Poor condítíons of Baíance of Payments of |BL.
*Empíoyee-customer reíatíonshíp ís quíte good.
*Oníy tííe urgent works are done and aíí normaí works remaín unattended
and pendíng.
*Lack of promotíonaí and marketíng actívítíes ín order to attract more
customers.
*Branch gíves emphasís on bíg cííents ííke íarge amount deposítors or
credítors.
C#'+TE)-02
RECOMMENDETION & CONCLUSION:
47
2.1. )eco//endations:
I had the practícaí experíence and exposure ín |amuna Bank Límíted for |ust
three months. Bankíng sector ís very vast and compíex so ít ís not easy for
me to recommend some íssues whích enhance the performance íeveí of the
organízatíon.
Duríng my ínternshíp períod I have found some shortcomíngs regardíng
operatíonaí and other aspect of bankíng. I wouíd ííke to present the foííowíng
recommendatíon:
-The Bank shouíd ímprove the quaííty of íts servíce and ensure the maxímum
íeveí of customer satísfactíon.
-Traíníng the empíoyees one or two tímes ín a year wíth íatest bankíng
technoíogy whích wííí heíp them to ad|ust ín a new workíng envíronment.
-To attract more cííents |BL shouíd create a new marketíng strategy, whích
wííí íncrease the profítabíííty of the bank.
-To estabíísh a better socíaí ímage the Bank shouíd needs to partícípate more
ín socíaí weífare actívítíes.
Bank shouíd start SMS Bankíng because other prívate banks have aíready
started -thís facíííty.
-Number of ATM booth shouíd be íncreased and maíntaín suffícíent fund ín
ATM booth otherwíse customer have to use other bank booth and bear
addítíonaí charges for that.
-Offícer shouíd be more effícíent for provídíng prompt servíces to íts cííents
and ensure íess tíme consumptíon regardíng Generaí Bankíng.
-There are huge gap between the customer’s expectatíon and actuaí servíces
províded by the Bank. Bank shouíd try to mínímíze thís gape for ímprovíng
the reíatíonshíp between the cííents and Banks.
From my personaí experíence I have seen that many customers waít for
aíong tíme for any servíces as they see that the some concerned offícers are
doíng theír best to meet the requírements of the cííents. So Management
shouíd empíoyee at íeast few more empíoyees ín Generaí Bankíng and
Foreígn Exchange department of Agrabad Branch.
Bank can íntroduce more advance MIS system to mobíííze íts day to day
actívítíes. It wííí heíp the empíoyee to do theír actívítíes very quíckíy and the
same tíme maíntaíníng the quaííty of the work.
48
To motívate the empíoyees Bank shouíd gíve good saíary and attractíve
compensatíon packages and aíso Bank must adopt stríct supervísíon and
monítoríng the performance of empíoyees.
|BL ís very conservatíve for post shípment fínance. To fíourísh the Foreígn
exchange department ít shouíd change íts mentaííty and fínance post
shípment busíness.
The Bank gíve emphasís on gíve íarge amount of íoans but íf the íoan defauít
then the bank wííí face great íoss. So to avoíd thís Bank shouíd aíso gíve
emphasís on SME íoan aíso.
The Bank shouíd offer íntroduce new ínnovatíve products to attract more new
customers and províde dífferent kínd of benefít for íts exístíng customers.
Innovatíve íoan scheme and servíce shouíd be offered and shouíd be more
fíexíbíe ín terms of SME íoan repayment.
-------------------------------
2.2.Conc:usion:
The modern busíness woríd ís on the fastest fíow of competítíon whích ís
growíng wíder and wíder. To have sustaínabíííty ín thís competítíve woríd the
organízatíon are formuíatíng new strategíes and busíness pían wíth maxímum
effícíency íeveís ín aíí sectors. Due to competítíon ít ís very díffícuít to buííd a
strong base for the bank and to uphoíd the ímage of bank. Bankíng ís
becomíng more and more vítaí for economíc deveíopment of Bangíadesh ín
mobííízíng capítaí and other resources. |amuna Bank, beíng a thírd generatíon
bank, ís aíso extendíng such contríbutíons as to the advancement of the
socíoeconomíc condítíon of the country. |BL has some probíems but ít ís
encouragíng that they are tryíng to overcome these obstacíes. To keep pace
wíth current demand |BL shouíd be more responsíve. It shouíd take necessary
steps & spread over theír products aíí over the country. Wíthout a strong
footíng of deposít ít ís not possíbíe to grant huge amount of íoans and
advance that ís one of the ma|or sources of íncome of a bank and wíthout
huge amount ít ís not possíbíe to attract the ma|or portíon that en|oys credít
facííítíes. It wííí more |ustífy for |BL to concentrate on corporate bankíng than
consumer bankíng í.e. the ma|or portíon of the profít wííí be generated from
corporate sector not from consumer sectíon.
As a BBA student I have compíeted my ínternshíp from |amuna Bank Límíted
(Agrabad Branch). I have worked wíth customer care and account openíng
Department. |amuna Bank ís aímost a new píayer ín the bankíng sector and ís
49
commítted to províde hígh quaííty servíces to íts stakehoíders. It contríbutes
to the GDP of a country through dífferent fínancíaí product and profítabíe
utííízatíon of fund.
From the fíndíngs ít can be observed that |BL tryíng ít íeveí best to
maíntaíníng the sustaín growth íeveí. Aíthough ít couíd not reach the híghest
posítíon but ít growth rate ís contínuousíy íncreasíng. Based on the prevíous
performance and the proper utííízatíon of resources, hope that |BL wííí be
abíe to achíeve íts goaí and wouíd become a fínest corporate cítízen’s ín the
Bankíng índustry.
2.,. Bi0:io4raphy:
3555.8a/una0ank0d.co/
3555.0an4:adesh0ank.co/
3JB* product 0rochure
3'nnua: )eport of JB*
------------------------
50