“Analysis of Deposit Schemes and Investment Modes of a Commercial Bank: A Study

on Pubali Bank Limited, Chakbazar Branch, Chattogram”

(This Internship Report is Submitted For the Partial Fulfillment of the Degree of Bachelor of Business
Administration with a Major in Finance)

Supervised By:
Washeka Anjom

Senior Lecturer

Department of Business Administration

Port City International University, Chattogram

Prepared By:
Bristi Dey Joya

ID: BBA01206217

Major: Finance

Department of Business Administration

Port City International University

Date of Submission: 19th January 2021
1
 Letter of Transmittal
Date:

Washeka Anjom

Senior Lecturer

Department of Business Administration

Port City International University, Chattogram

Subject: Submission of an Internship Report.

Dear Madam,

It is my pleasure to submit the report on “Analysis of Deposit Schemes and Investment Modes of a
Commercial Bank.” as per partial fulfillment of the requirements for awarding the degree of Bachelor of
Business Administration (BBA) from the Department of Business Administration, Port City International
University. I have completed this report as part of my internship program. I have written this report
based on my practical observations from general banking section. I believe that the knowledge and
experience I have gathered during my internship period will definitely help me in my future
professional life. And I also believe this genuine and honest analysis will help you to have a
positive viewpoint upon me.

I hope that this paper will live up to your expectation and you will appreciate my efforts.

Yours sincerely,

………………

Bristi Dey Joya

ID: BBA01206217

Major: Finance

Department of Business Administration

2
Port City International University, Chattogram.
 Student’s Declaration

I, Bristi Dey Joya, hereby declare that the presented report of internship titled “Analysis of Deposit
Schemes and Investment Modes of Pubali Bank Ltd: A Case Study on Chakbazar Branch, Chattogram” is
uniquely prepared by me after the completion of three months work at Chakbazar Branch of Pubali Bank
Ltd.

I also confirm that the report is only prepared for my academic requirement, not for any other purpose. I
hereby warrant that the work I have presented does not breach any existing copyright.

…………………

Bristi Dey Joya

ID: BBA01206217

Major: Finance

Department of Business Administration

Port City International University, Chattogram

3
 Supervisor’s Certificate

This is to certify that the Internship report on “Analysis of Deposit Schemes and Investment Modes of
Pubali Bank Ltd: A Case Study on Chakbazar Branch, Chattogram” has been prepared by Bristi Dey Joya,
a student of BBA Program, bearing ID No: BBA01206217, under my direct supervision and guidance. At
the time of preparation of this report, she spent much time and effort. Her dedication and effort in
preparing the internship report is very much satisfactory. As per my knowledge it was not submitted to any
other university or institute for getting any degree or diploma or for publication.

I wish her every success in life.

…………………

Washeka Anjom

Senior Lecturer

Department of Business Administration

Port City International University, Chattogram

4
Internship Placement Letter

5
Internship Certificate

6
 Acknowledgement

First of all my Utmost gratitude’s is to Almighty, Who give me the courage and strengths to prepare the
report. Internship report is an essential part of BBA program as one can gather practical knowledge within
the period of time by observing and doing the daily works of chosen organization. In this regard my
internship has been arranged at Pubali Bank Limited, Chakbazar Branch, Chattogram. My heartfelt
gratitude goes to my honorable teacher and supervisor Washeka Anjom for giving me valuable advice,
supporting and suggestions to complete the report in an appropriate manner. Her suggestions and
comments were crucial in making the study as flawless as possible.

My sincere gratitude goes to Goutam Dutta my on-site supervisor, Manager-Operation of Chakbazar

branch of Pubali bank limited for the cooperation.. I truly believe that saying, “Thank You” to all
individuals of Pubali bank limited (Chakbazar branch) is not good enough to honor their support that I have
been provided in preparing my report. Finally, I would like to give thanks to all the respondents for their
participation to assist me sincerely.

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 Executive Summary

The Banking business is a champion among the most charming endeavors in Bangladesh.
Reliably, this industry is creating at a higher pace. With this improvement the modernization of
setting aside extra cash systems has similarly upgraded a ton. The entry of worldwide banks in the
country and in the meantime the advancement of Private Commercial Banks have made this
business uncommonly forceful. Pubali Bank is the greatest Commercial Bank in Private Sector in
Bangladesh. It gives mass dealing with a record organizations to the customer through its branch
orchestrate wherever all through the country. This Bank has been expecting a crucial activity in
money related, current and country headway and moreover in the as a rule fiscal enhancement of
the country since its start through hold subsidizes enactment and hypothesis of advantages. The
evaluation of bank execution is a stunning procedure including relationship between nature,
internal errands, and outside activities. An authoritative focus of the administrators is to support
the estimation of bank's esteem shares by accomplishing the perfect mix of benefits and risks. In
such manner bank the block needs to construct a total course of action in order to recognize goals,
targets, spending designs and strategies that will be solid with the development of offer
characteristics. I have worked for three months as a prerequisite of internship part of BBA
program under the Department of Business Administration, Port City International University. I
have chosen the topic Analysis of Deposit Schemes and Investment Modes of Pubali Bank Ltd.
First chapter of the report includes introduction, objective of the study, scope of the study,
methodology of the study, limitation of the study. Second chapter gives an overview of the Pubali
Bank Ltd. Third chapter is concerned about the literature review. Fourth chapter is focused on
theoretical aspects of the deposit scheme and investment mode of PBL. Fifth chapter is focused
on analysis of the deposit and investment mode. Finally, in the last chapter I stated some
recommendations for the improvement of deposit and investment condition of the bank and then
the conclusion has been made.

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 Table of Content
Particulars Page No.
Letter of Transmittal 2
Student’s Declaration 3
Supervisor’s Certificate 4
Internship Placement Letter 5
Internship Certificate 6
Acknowledgement 7
Executive Summary 8
Chapter-1: Introduction 11-14
Background of the Study 12
Objectives of the Study 13
Scope of the Study 13
Methodology of the Study 13-14
Limitations of the Study 14
Chapter-02: Organizational Overview 15-20
Background of PBL 16
Corporate Information 16

Awards 16-17
Management 17
Vision & Mission 17-18
SWOT Analysis 18
Financial Position at a glance 19
Hierarchy of the management team 20
Chapter-03: Literature Review 21-26
Components of the System Deposit Management in a 22-24
Bank
Investment Policy by Commercial Banks 24-26

Chapter-04: Theoretical Aspects of the

Deposit Schemes and Investment modes
27-49
of Pubali Bank

Deposit Schemes 28

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Types of Deposit Schemes 28
Other term used in Banking 28-29
Overview Deposit 29-35
Investment Mode 36-49

Chapter-05: Analysis of the Deposit 50-59

Schemes and Investment modes of
Pubali Bank

Deposit Analysis 51

Current Deposit 51

Savings Deposit 52

Fixed Term Deposit 53

Other Term Deposit 54

Investment Income 55

Loan, Cash Credit, Overdraft etc 56

Industry Wise Distribution Loan 57

Consolidated Investment (Government) 58

Consolidated Investment (Others) 59

CHAPTER-06: Findings,
Recommendations & Conclusion 60-64

Findings 61

Recommendations 62

Conclusion 63

References 64

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 Chapter:1
Introduction

11
Background of the Study:
Banking has a long and rich history. It started as a result of people’s need. And with ages it has been
playing an important role in fulfilling the dire needs of businessmen and others. As the size and
complexities of business is increasing day by day banking sector is also providing various innovative
services with basic functions to increase size but to reduce the complexities.
Modern banking is a result of evolution driven by changing economic activities and life styles. Entering in
to a new millennium, banking needs have become more diverse and exotic than ever before. It is known
now that commercial bank is a profit maximizing institution. Hence it should provide loans to those sectors
in which its return is higher. But the nationalized commercial banks are conducting banking business with
different purposes. The main purpose is not just to make profit but also to maximize the social benefit. The
main functions of commercial banks are as follows:
A commercial bank collects and manages deposits. It provides cheque facilities and interests for its
customer deposit which may be either demand or time deposits of different maturity.
A commercial bank extends credit to a great variety of borrowers through loans as well as by purchasing
securities that are either fully or partly financed by commercial banks.
Commercial banks provide a variety of other services to their customers as for example remittance
facilities, credit information about customers, financial advice, collection of debts and dues etc.
Banks also provide a number of trust services to their customers. These services may either corporate trust
services, which arise in connection with the issue of bonds; personal trust services under which they
manage property on behave of there. Banks acknowledge a fundamental occupation in the business zone
and industrialization of a nation. Fundamentally, bank amasses store from the surplus units and credits it to
the need units against fervor for an express period. Under this circle, the bank offers grouped premium
notes and unmistakable choices to their clients to dispatch and store their cash. A huge portion of the
ordinary between the banks, just the client advantage and unmistakable work environments sway. A
Significant enhancement in the GOP with lower improvement level was developed amidst the recent years
despite a huge social event of negative outside part types of progress like South-East Asian emergency and
later generally speaking pull back and differing adjacent sufferings including obliterating surges. Far away
of development of the cash related approaches in Bangladesh, there are different association banks, semi-
government banks, private and outside banks. Pubali Bank Ltd is one of the best and driving private
business partition banks in Bangladesh.

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Objectives of the Study:
Primary Objective:
The primary objective of this report is to analyze the deposit schemes and investment modes of Pubali
Bank Ltd.

Other Objectives:
Others important objectives of this report are as follows:

 To provide an overview of a Pubali Bank Ltd.

 To develop literature review and investment mode.
 To provide a detailed description of “Deposit Schemes” of Pubali Bank Ltd.
 To analyze the deposit schemes and investment mode of Pubali Bank Ltd.
 To demonstrate findings, recommendations and conclution.

Scope of the Study:

This report covered the overall deposit system and investment mode of Pubali Bank Limited and also
includes relationship of the customers with the bank as well as the deposit Principals covered by the bank
as a general banking system.

Methodology of the Study

Methodology comprises of all the activities that is required to conduct the study and generate it into a
report. I collect the primary and secondary data.

Primary Data:
 Discussing with officials.
 Working with officials as a helping hand.
 One to one conversation.

Secondary Data:
 Different ‘Procedure Manual’ published by Pubali Bank Ltd.
 Annual Report of Pubali Bank Ltd.
i) Annual Report – 2013
ii) Annual Report - 2014
iii) Annual Report - 2015
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 iv) Annual Report - 2016
v) Annual Report - 2017

 Various books, articles, compilations etc. regarding credit policies.

 Different circular sent by Head Office of Pubali Bank Ltd. & Bangladesh Bank.
 Official website of the Pubali Bank limited.

Limitations of the Study

In every program or activities, one has to face constraints. During my four months internship program, I
have also faced some problems. These are:

 Data insufficiency limitation is the main constraint in the development of the report.
 As I am a not an employee of PBL, some data could not be collected due to internal security of the
bank
 This report did not include the whole financial position of PBL, actually more focused on
investment of the bank.
 Some of the data is confidential which they do not want to share with the internee.
 Lack of depth of analytical banking knowledge.

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 Chapter-2
Organizational Overview

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Background of Pubali Bank Limited
The Bank was initially emerged in the Banking scenario of the then East Pakistan as Eastern Mercantile
Bank Limited at the initiative of some Bangle entrepreneurs in the year 1959 under Bank Companies Act
1913 for providing credit to the Bangle entrepreneurs who had limited access to the credit in those days
from other financial institutions. After independence of Bangladesh in 1972 this Bank was nationalized as
per policy of the Government and renamed as Pubali Bank. Subsequently due to changed circumstances
this Bank was denationalized in the year 1983 as a private bank and renamed as Pubali Bank Limited.
Since inception this Bank has been playing a vital role in socio-economic, industrial and agricultural
development as well as in the overall economic development of the country through savings mobilization
and investment of funds. At Present, Pubali Bank is the largest private commercial bank having 473
branches and it has the largest real time centralized online banking network.
It provides mass banking services to the customers through its branch network all over the country. During
the last 5 years the growth rate of bank's earnings is more than 25% on average.

Corporate Information
Name of the Company Pubali Bank Limited
CEO & Managing Director Mr. M.A. Halim Chowdhury
Legal Status Private Limited Company

Registered Office Pubali Bank Limited

Head Office, 26 Dilkusha Commercial Area, Dhaka
- 1000,
Bangladesh. G. P. O. Box. Number: 853
Authorized Capital Tk. 20,000.00 million

Paid up Capital 9,983.44 million

Reserve 17,393.66 million

Number of Branch 482 branches

Website www.pubalibangla.com

Awards
Bangladesh Business Award 2009

Pubali Bank Limited achieved the award “Bangladesh Business Award 2009” as the best Financial
Institution in Bangladesh, given by the DHL, a reputed International Courier Service Provider and
the Daily Star, a National Daily News Paper of Bangladesh. Mr. Helal Ahmed Chowdhury,
Managing Director of Pubali Bank Limited received the award from Dr. Atiur Rahman, Governor of
Bangladesh Bank in a colorfu function arranged for this purpose in Hotel Sonargaon of Dhaka City.

16
Pubali Bank Limited has been honored by BOA

Pubali Bank Limited has been honored by BOA for patronization and support in game in
Bangladesh. The honorary Crest was received by Mr. Helal Ahmed Chowdhury, Managing Director
on behalf of Pubali Bank Limited from General Moin U Ahmed, the Army Chief and Chairman of
BOA. The General Secretary of BOA, Egr. Qutub Uddin Ahmed is seen in the picture.

Best Rated Bank – 2010

The Industry, a financial weekly, has given the medal of “Best Rated Bank – 2010” to Pubali Bank Limited
for its strong standing towards Capital Adequacy, Income, Loan Recovery and Corporate Social Services.
Mr. Mohammad Farashuddin, the former Governor of Bangladesh Bank and Chief Guest of the function,
handed over the reward to Mr. Helal Ahmed Chowdhry, Managing Director of Pubali Bank Limited. In the
award giving ceremony, arranged at the National Press Club, Mr. A. Q. Siddiquei, Chairman of Bangladesh
Commerce Bank, Mr. Md. Shahjahan Khan, former Senior Vice President of Dhaka Chamber of
Commerce & Industry were present in the function as Special Guests. Mr. Enayet Karim, Editor of The
Industry presided over the ceremony.

Best Banker 2011

Mr. Helal Ahmed Chowdhury, Managing Director of Pubali Bank Limited, has been honored as the
“Best Banker 2011” by the top financial weekly, the Artha Kantha. The honorable Commerce
Minister of the Peoples Republic of Bangladesh, L. Col.(Retd.) Mr. Faruque Khan, handed over this
medal, being Chief Guest of the function arranged in Westin Hotel of Dhaka City. Mr. A. K. Azad,
President of FBCCI, was present as Special Guest.

Management
The management of the bank is vested on a Board of Directors, subject to overall supervision and
directions on policy matters by the board that is constituted in terms of Bangladesh Bank (Nationalization)
Order 1972. Board of Directors, constituted by 13 (Thirteen) members, has authority to organize, operate
and manage its affairs on commercial consideration within the Board Policy of government. There are
directors appointed by the government. Other members of the Board including M.D are also government
appointed out of that at least three have the experience in the field of Finance, Banking, Trade, Commerce,
Industry and Agriculture. The managing director is the chief Executive of Bank.

Vision
Providing customer centric lifelong banking service.

Mission
1. High quality financial services with the help of the latest technology.

17
2. Fast and accurate customer service.
3. Balanced growth strategy.
4. High standard business ethics. Steady return on shareholders' equity.
5. Innovative banking at a competitive price.
6. Attract and retain quality human resource.
7. Firm commitment to the society and the growth of national economy.

SWOT Analysis of Pubali Bank Limited

During my internship period in Pubali Bank I have found some aspects relating to the Bank’s strengths,
opportunities, weaknesses and threats, which I think, affect the bank’s performance. These are given
below:

Strengths
 As a large bank, it has qualified and experienced manpower
 Branch location is suitable for business.
 Bank’s assets position is quite satisfactory and now there is no fund crisis.
 Bank has requisite wealth to sustain in the various challenges of market economy
Weaknesses
 As many employers retired from the bank, there is a crisis for manpower in the bank.
 Bureaucrat official process hampered the daily internal workflow.
 Lack of motivation for the workers.
 Low salary structure for the employees.
 In some cases management-employee relation is not good.

Opportunities
 Expansion of new investment areas.
 Scope for automation will open a big door of opportunity.
 In case of fund crisis Pubali Bank gets government support.

 The bank undertakes need-based training program.

Threats
 Newly developed privatized and foreign banks.

 Facing a great competition with other commercial banks and financial institutions.

 Loan recovery systems are very weak.

 Policies are not practiced properly.

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Financial Position at a glance
Particulars
2013 2014 2015 2016 2017
Authorized Capital 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Paid-up Capital 8,384.51 8,803.74 8,803.74 8,803.74 9,508.04
Reserve fund & other
11,920.99 14,055.64 16,071.38 16,340.67 14,912.27
Reserves
Total Deposits 1,77,878.17 1,93,090.24 224,808.59 247,278.50 271,605.83
Total Advances 1,36,940.46 1,49,974.53 173,125.42 203,011.23 239,539.60
Total Investment 48,678.92 48,970.73 57,881.68 48,865.75 53,527.20
Import Business 97,380.40 97,516.90 112,564.30 121,852.00 141,670.20
Export Business 69,484.40 77,071.30 85,740.40 86,764.10 96,127.50
Bridge Finance 6.26 6.22 5.55 4.81 4.81
Total Income 24,418.00 25,629.36 25,637.59 24,407.68 27,310.89
Total Expenditure 16,858.20 18,547.97 18,303.48 17,851.20 19,126.00
Pre-tax Profit 7,559.80 7,081.39 7,334.11 6,556.47 8,184.89
Net Profit 2,305.54 3,070.13 2,895.29 1,334.95 (281.20)
Total Assets 2,28,533.77 2,48,386.50 285,462.25 320,361.89 368,314.62
Fixed Assets 3,735.99 4,024.58 3,917.77 3,788.44 3,686.86
Other Information
Number of Employees 6,472 7,645 7,086 7,204 7,652
Number of Shareholders 1,02,604 92,836 75,058 62,687 52,515
Number of Branches 423 434 444 453 465
Earnings per ordinary Share
(taka) (Absolute EPS for Taka 10 2.75 3.49 3.29 1.52 (0.28)
Face Value)

19
Hierarchy of the Management Team

Managing Director

Deputy Managing Director

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

20
 Chapter:3
Literature Review

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Components of the System Deposit Management in a bank
The target of bank deposit management is providing enough money on current and time deposit bank
accounts to fulfill active operations on favorable terms for the bank, in volume and order defined by the
legislation. This target is fulfilled due to the effective function of the system of deposit management. We
suggest looking at the system of bank deposit management as a complex of interdependent elements,
which in the process of interaction cover the action of mechanisms of their own interrelations, fulfill the
function of the rational formation of bank deposit base and is aimed at supporting and raising the
effectiveness of bank activity. The system of deposit management includes the definition of object, subject,
tools, methods, principles, functions of deposit management and a supporting subsystem. Schematically
this system is shown in Figure 1.The object of management is a managed system, which covers the bank
deposit policy, a level of marketing researches of bank deposit services and a level of qualification of bank
management, the policy of sale of deposit services, communication policy, organizational structure of the
bank, the bank image, financial engineering, the size of interest rates, information re sources, material
resources. The subjects of managing deposit resources on the strategic level are the supervisory committee,
the board of directors, the asset-liability management committee, the internal audit service, the fee
committee; on the tactic level they are managers of branches, business-lines, the principal auditor.

The Supreme Authority of bank management is annual stockholders meeting. The supervisory committee
of the bank supervises the work of the board of directors in the period between annual stockholders
meetings.
The supervisory committee of the bank considers all questions, which should be discussed at the annual
stockholders meeting; appoints and dismisses the members of the board of directors, if the chair of the

22
board asks to do that, and approves regulations for the board of directors. It also defines the external
auditor, establishes the procedure of audit and control for financial and business transactions of the bank,
considers long-range business plans of the bank; makes decisions on setting up, reorganizing and
liquidating sister companies, branches and rep offices and approves their statutes and regulations.
The body of executive power of the bank is the board of directors, which does everyday bank management
and accepts responsibility for its performance. The board of directors decides on questions of managing
bank separate divisions, organization of bank transactions, money saving, accounting, internal control,
considers and approves internal bank documents [3, 4].The structure of subjects for managing raised
money from deposit sources is given in Figure 2. The organizational support of managing the inviting of
resources to the bank from deposit sources is done on strategic, tactic and operational levels.
On the strategic level the management is given by:

Today the bank technical support consists of powerful computers with the server architecture and PC for
workstations of users, modems, routers, multiplexors, data links, UPSs, scanners, printers, net adapters and
wiring hubs. Today commercial banks offer different kinds of deposits with the purpose to raise available
money in the bank. Various technological approaches to organize the work with deposits are suggested.
The first classical approach is when the depositor is suggested the saving book to do operations and
accounting on it while opening the account. The second approach is when the depositor is given plastic
money to serve the deposit account. The third approach is when we talk about deposits that have
23
peculiarities of securities, for instance a saving deposit certificate. That is why this subsystem is connected
with subsystems of managing cash payment, transaction bank day and paying plastic money with pay
cards.

Investment Policy by Commercial Banks

The Banking Regulations Act of India defines Commercial Banks as “A Bank is a financial institution
which accepts money from the public for the purpose of lending or investment repayable on demand or
otherwise withdraw able by cheques, drafts or order or other- wise.”Commercial banks have to perform a
variety of functions which are common to both developed and developing countries. These are known as
‘General Banking’ functions of the commercial banks. These functions can be broadly divided into two
categories: (a) Primary functions and (b) Secondary functions.

Primary Functions:
Primary banking functions of the commercial banks include:
 Acceptance of deposits
 Advancing loans
 Creation of credit
 Clearing of cheques
 Financing foreign trade
 Remittance of funds.
Secondary Functions:
Secondary banking functions of the commercial banks include:
 Agency Services
 General Utility Services.
A bank is a business organization engaged in the business of borrowing and lending money. A bank can earn
income only if it borrows at a lower rate and lends at a higher rate. The difference between the two rates will
represent the costs incurred by the bank and the profit. Bank also provides a number of services to its
customers for which it charges commission. This is also an important source of income. The followings are
the various sources of a bank’s profit:

 Interest on Loans
 Interest on Investments
 Discounts
 Commission, Brokerage, etc
Commercial banks are considered not merely as dealers in money but also the leaders in economic
development. They are not only the store houses of the country’s wealth but also the reservoirs of resources
necessary for economic development. They play an important role in the economic development of a
country. A well-developed banking system is essential for the economic development of a country.
Commercial banks also deal in foreign exchange. They sell demand drafts, issue letters of credit and help
remittance of funds in foreign countries. They also act as brokers in foreign exchange.

24
A bank makes investments for the purpose of earning profits. First it keeps primary and secondary reserves
to meet its liquidity requirements. This is essential to satisfy the credit needs of the society by granting
short-term loans to its customers. Whatever is left with the bank after making advances is invested for long
period to improve its earning capacity. Before discussing the investment policy of a commercial bank, it is
instructive to distinguish between a loan and an investment because the usual practice is to regard the two as
synonymous. The bank gives a loan to a customer for a short period on condition of repayment. It is the
customer who asks for the loan. By advancing a loan, the bank creates credit which is a temporary source
of fund for the bank. An investment by the bank, on the other hand, is the outlay of its funds for a long
period without creating any credit. A bank makes in- vestments in government securities and in the stocks
of large reputed industrial concerns, while in the case of a loan the bank advances money against
recognized securities and bills. However, the goal of both is to increase its earnings. The investment policy
of a bank consists of earning high returns on its unloaded resources. But it has to keep in view the safety and
liquidity of its resources so as to meet the potential demand of its customers. Since the objective of
portability conflicts with those of safety and liquidity, the wise investment policy is to strike a judicious
balance among them. Therefore, a bank should lay down its investment policy in such a manner so as to
ensure the safety and liquidity of its funds and at the same time maximize its profits. This requires
adherence to certain principles In compliance of the instructions issued by the Reserve Bank of India, the
revised Investment Policy of the Bank will be as under:-

 Mandatory Investment

In terms of mandatory requirement of Banking Regulation Act, it is compulsory to invest minimum 3% as

Cash Reserve Fund (CRR) & 25% as Statutory Liquid Reserve (SLR- investment in Govt. & other asset
will be treated normal. Up to 31.03.2011, SLR will be 15% and from 01.04.2011, it will be necessary to
maintain upto 25%

 Loans & Advances

Bank can invest up to 75% of own funds and up to 70% of total deposits in loans & advances, out of
which, after observing the prescribed norms for priority sector & weaker section of the society, remaining
portion can be advanced as per Loan Policy of the Bank keeping in view the ceiling of maximum amount
of advance to a single person, similar type of business & on similar type of securities to minimize the risk
involved.

 Investment with other Citizen Cooperative Banks

Bank will not make any investment with these Banks except under- taking normal transactions in the
accounts opened for clearing and transfer of funds purpose.

 Investment in other Banks

Bank may invest its surplus funds in any commercial, private & coop- erative Banks but if any such bank
provides considerably higher rate of interest then its financial position has to be analysed. Investment of
the liquid surplus funds from time to time has to be made in such a way that there should not be any
difficulty in meeting out the funds requirement for daily clearing adjustment as well as payment of the
deposits on due dates of maturity.

 Investment in non- SLR Debt Securities

In compliance of the instructions issued by the Reserve Bank of India from time to time and also keeping
in view the additional income on investment and safety of surplus funds, investment may be made in
Liquid Funds enjoying good market credit rating and also trading in Government Securities. In this
25
connection Board of Directors keeping in view the circumstances prevailing at that time may fix a limit for
the purpose, take a decision in the matter of investment and delegate powers to the Managing Director for
investment to a certain extent at one time. Investment will be made with the institutions which are
enjoying AAA credit rating. Such investment will not exceed 10% of the total deposits of the Bank.

 Investment in other Institutions, Corporations & Companies

Bank will not invest its surplus funds in any other institution, company , corporation etc whatsoever be the
attractive rate of interest.

 Investment in share money of Cooperative institutions

Bank may invest 2% of its personal funds in the share money of the Cooperative Institutions but it will be
in accordance of the directives of the Reserve Bank of India.

 Cash Management
Except in abnormal conditions, cash balance in the Bank will be kept within the fixed limit as excess cash
will affect the portability of the Bank.

 Besides above, day to day asset, liability management should be prepared in such a way that after
complying the mandatory requirements, Bank should earn maximum profit.

 No amendments/modification in the provisions of the sanctioned Investment policy will be made without
the Board of Directors.

 In the process of investment, in no circumstances provisions of the Reserve Bank of India will be violated.

26
 Chapter : 4
Theoretical Aspects of the Deposit
Schemes and Investment modes of Pubali
Bank

27
Deposit Scheme
A deposit scheme is an account at a banking institution that allows money to be held on behalf of the
account holder. Some banks charge a fee for this service, while others may pay the client interest on the
funds deposited. The account holder retains rights to their deposit, although restrictions placed on access
depend upon the terms and conditions of the account and the provider. The banking terms "deposit" and
"withdrawal" actually tend to obscure the economic substance and legal essence of transactions in a deposit
account. From a legal and financial accounting standpoint -- and as counter-intuitive as it may seem -- the
term deposit is actually used by the banking industry in financial statements to describe the liability owed
by the
bank to its depositor, and not the funds (whether cash or cheques) themselves, which are shown an asset of
the bank Typically, an account provider will not hold the entire sum in reserve, but will loan the money out
at interest to other clients, in a process known as fractional-reserve banking. It is this process it allows
providers to pay out interest on deposits. By transferring the ownership of deposits from one party to
another, they can replace physical cash as a method of payment. In fact, deposits account for most of the
"money supply in use today. From an economic standpoint, the bank has essentially created "economic
money". There are various ways in which bank deposits arise. Customers may deposit actual cash or they
may deposit rights to receive cash; these rights to receive cash may be in the form of a cheque, a bill, a
promissory note owing to them, etc. deposits may also arise out of loans granted by the bank or through the
process of discounting customer’s bills. In this case, they are known as created deposits. In actual practice,
the amount of such deposits is much larger than that of the deposits received in hard cash or in the form of
rights to receive cash.

Types of Deposit Accounts

Current Account Deposit: Current account is a deposit account held at a bank or other financial
institution, for the purpose of securely and quickly providing frequent access to funds on demand, through
a variety of different channels. Because money is available on demand these accounts are also referred to
as demand accounts or demand deposit accounts.

Savings Deposit: Savings accounts are accounts maintained by commercial banks, savings and loan
associations, credit unions, and mutual savings banks that pay interest but can not be used directly as
money. These accounts let customers set aside a portion of their liquid assets that could be used to make
purchases while earning a monetary return.

Fixed Deposit: A time deposit (also known as a term deposit, is a money deposit at banking institution that
cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it
can be held for another term. Generally speaking, the longer the term the better the yield on the money. A
certificate of deposit is a time deposit product.

Other Terms Used in Banking

Branch Banking: This refers to the practice of maintaining physical locations where customers
can receive a wide array of banking and financial services, such locations are described as branches. They
may provide access to a combination of cash machines, telephone banking, counter services and financial
advice
Cash Machines: Cash machines are electronic devices that allow bank customers to make cash
withdrawals and check their account balances without the need for a human teller. Many also allow people
28
to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-
paid accounts or even buy postage stamps.

Internet Banking: Internet or Online banking describes the use of a bank's secure website to
view balances and statements, perform transactions and payments, and various other facilities. This can be
very useful, especially for banking outside bank hours and banking from anywhere where internet access is
available. Since the internet revolution most retail banking institutions offer access to current accounts via
online banking.
Mobile banking is a service provided by a bank or other financial institution that allows its customers to
conduct financial transactions remotely using a mobile device such as a smart phone or tablet. Unlike the
related internet banking it uses software, usually called an app, provided by the financial institution for the
purpose. Mobile banking is usually available on a 24/7 hour basis. Some financial institutions have
restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount
that can be transacted. Mobile banking is dependent on the availability of an internet or data connection to
the mobile device. Transactions through mobile banking depend on the features of the mobile banking app
provided and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, P2P payments, and funds transfers between a customer's or
another's accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at
the customer's premises. Using a mobile banking app increases ease of use, speed, flexibility and also
improves security because it integrates with the user built-in mobile device security mechanism

Overdrafts: An overdraft occurs when withdrawals from a bank account exceed the available balance.
This gives the account a negative balance and in effect means the account provider is providing credit. If
there is a prior agreement with the account provider for an overdraft facility, and the amount overdrawn is
within this authorized overdraft, then interest is normally charged at the agreed rate. If the balance exceeds
the agreed facility then fees may be charged and a higher interest rate might apply.

Overview of Deposit Analysis of PBL

There are distinctive kinds of store in PBL. Be that as it may, each store is distinctive with other
and the measure of store is likewise extraordinary with other store.

Deposit Product and Services are

Store account is one of the imperative wellsprings of bank's assets. So as to pull in clients the
banks offer appealing offices to various kinds of store accounts holders. Some Deposit Account is
as per the following:

Types of Deposit Accounts-

 Current Deposits.
 Savings Bank Deposits.
 Fixed Deposits (Term Deposit).
 Short Term Deposits.

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 Monthly Term Deposits.
Schemes offered by PBL

 Monthly Saving Scheme.

 Monthly Benefit Deposit Scheme.
 Quarterly Benefit t Deposit Scheme.
 Time Benefit t Deposit Scheme.
 Double Benefit Deposit Scheme.
 Super Benefit Deposit Scheme.
 Special Saving Scheme and Advance Benefit t Deposit Scheme.

Current Account
Current deposit is purely demand deposit account because the bank is bound to pay the amount to the
account holder on demand at any time. It is running and active account, which may be operated upon
any number of times during a working day. There is no restriction on the number and the amount of
withdrawals from a current account. The special characteristics of a current account are as follows:
The primary objective of current is to serve big customers such as businessmen, joint stock
companies, private limited companies, public limited companies etc. from the risk of handling cash
by themselves. The cost of providing current account facilities is considerable to the bank since they
undertake to make payments and collects the bills, drafts, cheques for any number of times in a
particular day. The bank therefore does not pay any interest on current deposit while on the other
hand some banks charge for incidental charges on such account. For opening of a current account
minimum deposit of taka 1000/= is required.

Savings Bank Account

Current store is essentially asked for store account because the bank will without a doubt pay the
whole to the record holder on premium at whatever point. It is running and dynamic record, which
may be worked upon any number of times in the midst of a working day. There is no restriction on
the number and the proportion of withdrawals from a present record. The one of a kind

characteristics of a present record are according to the accompanying. The fundamental focus of
current is to serve enormous customers, for instance, delegates, business substances, private obliged
associations, open limited associations, etc from the risk of managing cash without any other
person's information.

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The cost of giving current record workplaces is huge to the bank since they grasp to make portions
and accumulates the bills, drafts, checks for any number of times in an explicit day. The bank along
these lines does not pay any energy on current store while of course a couple of banks charge for
coincidental charges on such record.

For opening of a present record minimum store of taka 1000/= is required. Right off the bat reference
is furthermore required for opening of such record.
 Minimum measure of Taka 200 is required a starting store
 Frequent withdrawal is not empowered
 Normally withdrawal not permitted more than ¼th of the limit of Tk.1000 in seven days.
 7 days is required for withdrawal of extensive sum.
The rate of intrigue is 6.5 % against S.B account.

Fixed Deposit Account

It is famously known as "Time Deposit". Since these stores are not repayable on interest but rather
they are pull back capable subject to a time of notice. The forthcoming settled store holder is
required to till up an application from, endorsed for the reason, expressing the sum and the time of
store. The application itself contains the standards and controls of the store including the space for
example signature.

 Payment made on expiry concurred periods.

 Payment requested before expiry of concurred date than penalty is charged.
 Introducer is not required.
 2 Copies of Party and 1 copies of nominees photo is required
 Loan is endorsed against FDR.

Interest Rate
Rate of Interest is varies on the season of improvement date. These are the stores, which are made
with the bank for settled period demonstrated early. It is basically a period store account. The bank
doesn't keep up cash spares against these stores and thusly the bank offers higher rates of excitement
on such stores. Settled store receipts are best for the people who have adequate of cash at exchange.
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They can open a FDR and at improvement they will get a good proportion of interest. At present the
rate of excitement for settled store Receipt (FDR) in the Pubali Bank Limited are according to the
accompanying:

Term Rate of Interest

From 3 months or more however under 6 months7.5%
From a half year or more however under 9 months 8%
From 1 years or more however under 2 year 8.5%
From 2 years or more however under 3 year 9%

Other Types of Deposit Accounts

There are some different kinds of store account kept up by
PBL. For example,

Short Term Deposit Account

Momentary Deposit Account is same as Current Account. Here cash is kept for a brief span. A notice
is required earlier withdrawal of cash. It is additionally a period store account. The greater parts of
the qualities of this record are as same as current record. The main contrast is that 7 days see is asked
for withdrawal of any entirety and intrigue is paid.

 6% intrigue is given for the real time frame.

 Notice period is differing from 7days to 30 days.

Funds plan
To draw in investors and energize sparing Pubali Bank Limited presented different plans.

Monthly Savings Scheme

Month to month Saving Scheme is a standout amongst the most prominent store items in various
networks that acquainted with draw in little savers for working up their propensity for reserve funds
and consequently develop a solid capital base for the economy. The regularly scheduled payments
are in different sizes and one can embrace the plans for a time of 03 years, 05 years, 08 years or 10
years. Speculator gets a single amount (key in addition to enthusiasm) at the development of the
plan. Portion sum ought to be saved inside the initial 10 days of every month. If there should be an
occurrence of disappointment, 5% of regularly scheduled payment will be charged as late installment
expense, which will be included with the portion sum.
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 Objectives:
 Building the habit of savings
 Attract small savers
 Saving for rainy days
 Ensure regular income flow Mode
 Monthly installments of various sizes for a fixed deposit. Benefits
 Lump sum returns after various terms of period
Monthly Benefit Scheme
Under this plan, contributor will get a specific aggregate of cash in every month extent to his/her
store amid the whole residency. Advantage begins ideal from the primary month of opening a record
under this plan and proceeds up to five years. On development, the key sum is paid back. Goals of
this plan are: help the resigned people for contributing their retirement benefits, Create venture open
doors for Non-Resident Bangladeshi, and so on. Least saved sum is BDT 50,000 or its products and
the residency is five (05) years. This plan is otherwise called "Family Maintenance Deposit Scheme
(FMD)".
Destinations
Help the resigned people for contributing their retirement benefits create speculation open doors
for alien Bangladeshi Explore venture open doors for school, school, college and so forth.
Mode:

 Deposit a settled measure of cash say Tk.50,000 or its duplicate for long time
Advances

 A settled measure of cash consistency for a long time.

Quarterly Benefit Deposit Scheme

The 'Quarterly Benefit Deposit Scheme' will be kept up for a time of 3 (three) years and the base measure of
store is BDT 50,000.00 (fifty thousand) or its products. Intrigue will be paid on quarterly premise.
Advantages begin ideal from the main quarter of opening the plan. On development central sum will be paid
back. Bank account is expected to keep up this plan. Advance might be allowed up to greatest 80% of the
constrained encashment esteem on the date of advance preparing.

Time Benefit Deposit Scheme

Under this plan, kept sum held for 4.25 years (or 51 months) and the base measure of store is BDT 50,000.00
(fifty thousand) or it's Multiples. After 4.25 years development, 1.5 occasions of the stored sum will be paid
back to the record holder. In the event of untimely encashment premium will be paid on Saving A/C Rate.

33
Double Benefit Deposit Scheme (DBDS)
The fundamental fascination of DBDS is that, the saved sum will be twofold in residency of 6 (Six) years.
Least saved sum ought to be BDT 10,000 or its products. If there should arise an occurrence of untimely
encashment premium will be paid on Saving A/C Rate. Advance might be allowed up to most extreme 80%
of the saved sum, yet least guideline sum must be BDT 20,000.

Super Benefit Deposit Scheme (SBDS)

This plan has been detailed with a view to pick up a high ground in the market regarding Deposit
accumulation. Highlights of this plan are listed underneath: Features and Terms of the plan:
1. Minimum Deposit sum would be BDT 1, 00,000.00 or products thereof.
2. The tenor of the plan would be one (1) year and inexhaustible at commonly concurred
rate.
3. Customer won't be qualified for any enthusiasm for instance of pre-develop encashment
for example all advantages given will be deducted from main.
4. Benefits can be drawn month to month/quarterly/half yearly or at development.
5. Benefits will be exchanged to the SB/CD or whatever other record where the benefit(s)
will be exchanged.
6. Scheme holder is qualified for advantage from the following month of record opening.
7. A separate prefix number (supplier by our IT division) ought to be utilized for this plan.

Special Saving Scheme (SSS)

For further fortifying of the store base of the Bank and meet the distinctive idea of interest of the
contributors MBL have grown new store item to be specific, "Exceptional Savings Scheme
(SSS)".sopno noi bastob....." is the focal saying of this new item.

Advance Benefit Deposit Scheme

Under Advance Benefit Deposit Scheme, one can store a specific measure of cash for a long time.
The contributor will get the advantage on yearly premise. The advantage measure of first year will be
gotten ahead of time at the season of store. On development, the contributor will get back the main
sum with the advantage measure of second year. That implies Interest is paid in two stages, first
stage paid at first and second stage paid after development. Credit might be conceded up to greatest
70% of store. This is otherwise called "Agrim Munafa Amanat Prokolpo (AMAP)".

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Double store plot

Targets

 Gives greatest benefits

 Help in addressing explicit necessities like training, marriage and so on.

Mode

 Deposit a settled measure of cash, say Tk, 50,000 or its duplicate for a long time

Advances

 After seven years saved sum will be multiplied.

Hajj store conspire

Pubali bank has starting late displayed an arrangement name Hall store designs. Under this

arrangement, PBL empowers by and large populace to store an explicit proportion of money for

slightest 1 year to 5 years. At the advancement PBL reestablish the money for Hajj reason. The put

away money under this arrangement is placed assets into different endeavor by following Islamic

shariah.

Call Deposit Account

Prevalently opened by affiliation calling fragile in which (the suppliers, authoritative laborers, etc.)
store basic proportion of carnets money supporting the affiliation calling tenders. It is named as Call
Deposit since affiliation, which opens these records, may call withdrawal of the spared record at
whatever point after the expiry of the fragile period. No interest is allowed

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Investment Modes

Corporate Banking

Secured Overdraft (OD): Overdrawing permitted by the bank in current account is termed as an overdraft
facility. Advances in the form of overdraft is allowed in Current Account operated upon by cheques. The
Customer is sanctioned a certain limit up to which he can overdraw his current account within a specified
period. Withdrawals and deposits can be made any number of times at the convenience of the borrower
provided that the total amount overdrawn dose not at any time exceed the agreed limit. Interest is
calculated and charged only on the actual debit balances on daily product basis and applied to customer’s
account at quarterly rests.

Cash Credit A/C (CC)

Category

 It is of two types: Hypothecation and Pledge

 The account may have debit or credit balance on the basis of transaction. Debit balance will be
treated as Asset and Credit balance will be treated as liability. It will be categorized as demand
deposit for credit balance and advance for debit balance.

Customer Eligibility

 Opening a Cash Credit Account, prior sanction is required.

 Eligible customers are

 Individual (Adult)
 Sole traders Firm/Proprietorship
 Partnership Firm
 Joint Stock Company
 Non Trading Concern ( Club, Society etc.)
 Govt./Autonomous Bodies
 NGOs

Account Opening Procedure

- Photograph
- Specimen Signature
- Specific papers/documents on the basis of the type of the customer.

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Joint Account Concept
- Allowed

- Operation as per instruction: Joint/Any/All

- Payable to either or survivor.

Nominee Inclusion
- Required in case of individual or proprietorship company

Operation by PA holder
- Allowed

Deposit Procedure, Transaction Nature, Restrictions

- Random by the depositor
- No restriction for deposit
Withdrawal Procedure
- By cheques supplied by the bank.
- Debit by bank through voucher is allowed.

Withdrawal Frequency
- Random by the Customers within the sanctioned limit.
- Excess over the limit may be allowed by the competent authority.

Repayment method
- There is no repayment schedule. Borrowers can payback the entire loan amount on or before
expiry date.

Security
- Loans are secured by collateral or personal/corporate guarantee.

Renewal
- The cash credit advances can be renewed.
- Renewal with enhancement (increase of principal) is also possible.

Demand Loan (DL)

Categories

- Loan Against PF
- Loan Against PSP

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 - Loan Against Gold
- Loan Against Other Securities
- General HBL
- Loan Against SSP
- Loan Against DPS
- Education Loan
- Loan Against Secured Mortgage
- Loan Against Provident Fund
- Loan Against Transport
- Staff House Building Loan
- Loan Against FDR
- Car Loan (Interest Bearing)
- Term Loan
- Motor Cycle Loan
- Flood Loan
- Non Resident Credit Scheme
- Loan Against PPS
- Other Loan

Customer Eligibility

- Demand loans are sanctioned to Corporate/Companies or Business Concerns or Government or

Partnership companies, Proprietorship companies or any individuals and staffs.
- Repayment is made by monthly installment or in lump sum as per sanction term. Repayment
schedule may be changed if the bank changes the rate of interest or customer fails to pay
Installment in due time. Sanction Limit, Installment size, no. of installments and interest rate has to
be defining into the sanction letter.

Sanction Details

- Limit
- Date of Sanction
- Period
- Expiry Date

Loan Ceiling/Disbursement

- Disbursement may be one time or by multiple installments up to the sanction limit.

- Suppose limit is 15.00 Lac (15,00,000.00) only. Disbursement may be 1st installment 5.00 Lac, 2nd
installment 8.00 Lac and 3rd 2.00 Lac.

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Moratorium or Grace period

Grace period should be defined for General HBL, Staff HBL and such kind of accounts. It may be Six
months or Twelve months or Twenty-four months from date of opening. Example: a loan for 1,00000.00 is
sanctioned on 01.01.2009 at 10% interest for 1 year. The grace period is 6 months, during grace period
interest capitalization takes place but there will be no repayment from customer.

Repayment

- Repayment will be started after the grace period.

- Installment may be repaid from Current Deposits/Savings Bank Account or through the standing
instruction.
- Repayment of Monthly/Quarterly/Semi-annually/Yearly installments can be made in CASH
through Teller transaction
- Repayment will be completed by settlement process.

Penal Interest

Penal Interest is not allowed for DL Accounts.

Premature Adjustment

Allowed as usual subject to realization of accrued interest/charges if any

Personal Loan

Car Loan

General Information

This product will allow vehicle financing to the customer segment in terms of bank’s policy. Under this
scheme, the vehicle is hypothecated to the bank only. In addition to this registration requirement, on a case
to case basis, banks may also wish to secure the loan partially by the commonly acceptable form of
cash/quasi cash securities available in the market.

Customer Segment

Any Bangladeshi individual who has the means and capacity to repay bank loan. In specific terms, these
could be salaried executives of multinational and middle to large size local corporate, Government
officials, Officials working in reputed NGOs (Non Government Organizations), international aid agencies
& UN bodies, any tax paying businessmen of repute, any employed / self-employed tax-paying individual
having a reliable source of income.

39
Purpose

Purchase of non-commercial new and reconditioned vehicles for personal use only.

Minimum Income

Monthly net income must be 3 times of loan installment.

Loan Size

Maximum loan size will be Tk.15 Lac.

Flat Purchase Loan

General Information

This product will allow flat financing to the customer segment in terms of bank’s policy. Under this
scheme, the flat is registered to the bank only. In addition to this registration requirement, on a case to case
basis, banks may also wish to secure the loan partially by the commonly acceptable form of cash/quasi
cash securities available in the market.

Customer Segment

Any Bangladeshi individual and non-residential Bangladesh (NRB) who has the means and capacity to
repay bank loan. In specific terms, these could be salaried executives of multinational and middle to large
size local corporate, Government officials, Officials working in reputed NGOs (Non Government
Organizations), international aid agencies & UN bodies, any tax paying businessmen of repute, any
employed / self-employed tax-paying individual having a reliable source of income.

Purpose

To purchase a flat for residential purpose in a residential/ commercial area having all amenities/ facilities
like water, electricity etc.

Loan Size

50% of the flat value, maximum 25 Lac (which is lower).

Household Durable Loans

General Information

A personal loan scheme that supports purchase of various consumer durable such as Television,
Refrigerator, Air Conditioner, Hi-Fi, Washing Machine, Computers, other household furniture etc.

40
Customer Segment

Any Bangladeshi individual who has the means and capacity to repay bank loan. In specific terms, these
could be salaried executives of multinational and middle to large size local corporate, Government
officials, Officials working in reputed NGOs (Non Government Organizations).

Minimum Income

Minimum net income Tk.3,000/- per month

Loan Size

Upto 1 Lac or 2,00,001 to 3 Lac including down payment.

SME Financing

PBL Subarna

Product Objective/Purpose: To meet up working capital requirement.

Eligibility:

2 (two) years experience in the line of business

Business must be a going -concern with more than 1 (one) year in operation

Age Limit: Minimum 18-years

Loan Ceiling: Tk. 2.00-lac to Tk. 10.00-lac

Financing Range: 60%-70% of inventory and receivable

Tenor: From 12 months to 36 months

Rate of Interest: @15.00% P.A. subject to change at Bank's discretion.

Security: Primary Security

- Post dated Cheques

- Charge on current assets (receivables, Stock etc.)
- Personal guarantee of Proprietor, Partners, Directors, Spouse
- Hypothecation of machinery, equipments etc
- Personal guarantee of 1 (one) person acceptable to Bank

Collateral (Not mandatory upto Tk. 10.00-lac): Mortgage (in case of ownership)/assignment of possession
right of shop, show-room etc

41
Documents

- Request letter of the applicant

- Consent letter
- KYC profile with NID
- Photograph of Borrower, Guarantor, Business site
- Financial and Personal net-worth
- Branch Manager's & Regional Manager's visit report.

Repayment: Repayment of the loan will be started after 1/2/3 months of disbursement by equal monthly
installment.

Sanction Authority: Regional Manager.

PBL Karma Uddog

Product Objective/Purpose: To meet up short term fund requirement of SME's and SME's run by women
entrepreneurs

Eligibility:

2 (two) years experience in the line of business.

Business must be a going -concern with more than 1 (one) year in operation.

Age Limit: Minimum 18-years

Loan Ceiling: Tk. 2.00-lac to Tk. 10.00-lac

Financing Range: 60%-70% of inventory and receivable

Tenor: From 12 months to 36 months.

Rate of Interest: @15.00% P.A. and 10.00% P.A. for woman entrepreneurs subject to change at Bank's
discretion.

Security: Primary Security

- Post dated cheques.

- Charge on current assets (receivables, Stock etc.).
- Personal guarantee of Proprietor, Partners, Directors, Spouse.
- Hypothecation of machinery, equipments etc.
- Personal guarantee of 1 (one) person acceptable to Bank.

Collateral: (Not mandatory upto Tk. 10.00-lac) Mortgage (in case of ownership)/assignment of possession
right of shop, show-room etc.

42
Documents:

- Request letter of the applicant.

- Consent letter.
- KYC profile with NID.
- Photograph of Borrower, Guarantor, Business site.
- Financial and Personal net-worth.
- Branch Manager's & Regional Manager's visit report.

Repayment: Repayment of the loan will be started after 1/2/3 months of disbursement by equal monthly
installment.

Sanction Authority: Regional Manager.

PBL Sujan

Product Objective/Purpose:To purchase capital Machinery, Office equipment, Covered Van, Pick up Van
etc

Eligibility:

2 (two) years experience in the line of business

Business must be a going -concern with more than 1 (one) year in operation

Age Limit: Minimum 18-years

Loan Ceiling: Tk. 2.00-lac to Tk. 10.00-lac

Financing Range: 90% (maximum) of fixed asset purchase or as the case may be

Tenor: From 12 months to 36 months

Rate of Interest: @15.00% P.A. subject to change at Bank's discretion

Security: Primary Security

- Post dated cheques

- Charge on current assets (receivables, Stock etc.)
- Personal guarantee of Proprietor, Partners, Directors, Spouse
- Hypothecation of machinery, equipments etc
- Personal guarantee of 1 (one) person acceptable to Bank

Collateral: (Not mandatory upto Tk. 10.00-lac) Mortgage (in case of ownership)/assignment of possession
right of shop, show-room etc

43
Documents:

- Request letter of the applicant

- Consent letter
- KYC profile with NID
- Photograph of Borrower, Guarantor, Business site
- Financial and Personal net-worth
- Branch Manager's & Regional Manager's visit report

Disbursement: Disbursement to be made under PBL Sujan through a Payment order directly to the seller.
No cash drawing will be allowed under any circumstances

Repayment: Repayment of the loan will be started after 1/2/3 months of disbursement by equal monthly
installment

Sanction Authority: Regional Manager

Trade Finance

General Characteristics: Export LC is extensively used in Foreign Trade to facilitate the smooth conduct of
the export business. Banks play the role of intermediaries to get the transaction through, even though the
buyer and the seller may not know about each other’s background. Export LCs clear the uncertainty
between the buyer and the seller with the bank undertaking to settle the obligations in time. Export LC in
favor of the customer is received by the bank, which advises the LC to the customer. When the customer
ships the goods as per LC terms and submits the relevant documents to the bank, the bills are either
purchased or sent for collection to the LC issuing bank.

The amounts drawn against Export LCs are endorsed on the back of the original LC.

Facilities offered

- Pre Shipment credit in the form of Packing Credit

- FBP-Foreign Bills Purchase
- FBP-local

Credit: At the request of the customer, pre shipment credit is extended to him in the form of Packing Credit
for production and packing expenses. On submission of export documents, the customer’s bills are
purchased by the bank under FBP (Foreign Documentary Bills Purchased) Local export bills are purchased
under FBP-local (Inland Documentary Bills Purchased)

Treasury: Exchange rate & NOSTRO account reconciliation

Interest: Interest is charged on Packing Credit, FBP and FBP local.

Documentation Requirements

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  Trade License
 IRC (Import Registration Certificate)
 ERC(Export Registration Certificate)
 VAT Registration certificate
 TIN
 Bonded Warehouse License
 Member Certificate issued by BGMEA/BKMEA
 Approval of Textile Office
 Registration of Export Promotion Bureau
 Fire License
 Memorandum of Articles of Association and Certificate of Incorporation (Applicable for
Limited Company)
 Rental contract & letter of Disclaimer from Building owner for rented factory
 Application for opening of L/C
 Original Export L/C / Contract received from Buyer’s Bank / Buyer
 L/C Advising Letter
 LCAF including HS Code
 IMP
 Indemnity(In Prescribed Form)
 Proforma Invoice/ Indent
 Updated CIB report
 One set of charge document including Personal Guarantee of every director/ partner
 Cover note of import related products (Money receipt with photocopy of DD/ Pay-order)
 Fire Policy of factory
 Form XII in case of limited/ Partnership company
 Declaration of income tax of previous year
 Credit report of the Supplier
 NOC from previous Bank(if applicable)
 Collateral security documents (if applicable)
 Other documents/papers directed by Bangladesh Bank/CCI&E/Related office of Bangladesh
Govt.

Import LC

General Characteristics: Import LC is used for import of goods from other countries. It could either be a
sight LC (payable immediately) or deferred LC (payable at a specific date in the future). Import LC is
opened by the bank on behalf of its customer for the import of raw materials, capital machinery, consumer
goods, food, chemicals, vehicles, etc. Margin is collected from the customer and kept in a separate account.

45
On receipt of documents from the negotiating bank, payment is made by debiting the PAD account in the
customer’s name for sight LCs or sending an acceptance, undertaking to pay at a later date (for usance
LCs).

Facilities offered

- When documents for sight LCs are presented for payment, PAD A/c is debited initially
- Post Import Finance is provided to the importer in the form of LIM, LTR, Hire Purchase and Lease
finance

Relation to Other Business Processes

Credit: On submission of import documents, payment is made to the negotiating bank by debiting PAD A/c
(payment against documents) in the name of the customer

Further post import finance is allowed to the customer in the form of LIM (Loan against Imported
Merchandise), LTR (Loan against Trust Receipt), Lease Finance and Hire Purchase

Guarantees: In the absence of original documents, shipping guarantee is issued for release of consignment
from the port.

Documentation Requirements

 Trade License
 IRC (Import Registration Certificate)
 ERC(Export Registration Certificate)
 VAT Registration certificate
 TIN
 Bonded Warehouse License
 Member Certificate issued by BGMEA/BKMEA
 Approval of Textile Office
 Registration of Export Promotion Bureau
 Fire License
 Memorandum of Articles of Association and Certificate of Incorporation (Applicable for
Limited Company)
 Rental contract & letter of Disclaimer from Building owner for rented factory
 Application for opening of L/C
 Original Export L/C / Contract received from Buyer’s Bank / Buyer
 L/C Advising Letter
 LCAF including HS Code
 IMP
 Indemnity(In Prescribed Form)
 Proforma Invoice/ Indent

46
  Updated CIB report
 One set of charge document including Personal Guarantee of every director/ partner
 Cover note of import related products (Money receipt with photocopy of DD/ Pay-order)
 Fire Policy of factory
 Form XII in case of limited/ Partnership company
 Declaration of income tax of previous year
 Credit report of the Supplier
 NOC from previous Bank(if applicable)
 Collateral security documents (if applicable)
 Other documents/papers directed by Bangladesh Bank/CCI&E/Related office of Bangladesh
Govt.

EDF LC

Opening EDF LC

 The credit report status of the buyer and supplier is checked.

 The BTB entitlement for opening BTB EDF is calculated.
 If the proposed LC amount is covered within the limit of BTB L/C as well as EDF limit, the EDF
LC is opened.
 The necessary vouchers are prepared for realization of charges
 The LC message is prepared. After proper checking, the LC is sent through SWIFT or printed and
dispatched through courier with a covering letter addressed to the advising bank.
 On the following day, the LC opening position is informed to HO, ID as per their prescribed format
for onward submission to Central Bank.
 Reimbursement authority is also issued by SWIFT/Mail as per LC terms. Or payment instruction to
be issued at the time of payment
 Information to system for EDF L/C is similar to the information of BTB L/C.
 Create Contra liability, Realize of L/C commission, other charges etc.

Other Business Event

 Amendment of EDF LC
 Lodgment of EDF import bills
 Settlement of import obligation at maturity – EDF LC
 Cancellation of EDF LC

Packing Credit (PC)

Shipment finance in the form of Export Packing Credit (PC) to assist cash flows for manufacturing or
packing goods for export from Bangladesh

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Feature & Benefits

o Easy Documentation
o Fast Processing
o It is a revolving limit for one year but renewable
o Allow the Exporter to purchase of raw materials, cost of processing the same to finished
goods, packing and dispatching of goods
o PC disbursement made case to case basis with an expiry date up to 90 - 180 days.
o Global Loan Limit exposure for the client
o Case to case PC limit determines against each export LC on the basis of export LC /
Accepted BTB bills
o Increase the present cash flow of the exporter to improve the financial condition and
strengthen the financial ability
o Online Banking facilities for repayment

Requirements

o Application received from the customer for disbursement of PC

o Viability report along with business proposal
o Photograph of signatory to be attested by Chairman of the company
o Copy of valid trade license
o Official seal with designation
o Tax Certificate
o KYC Form
o Transaction Profile

Foreign Bill Purchase (FBP)

Service Features: In case of having a credit line with the bank, after all documents are checked, the bank
will buy Foreign Bills under the L/C (Usance L/C) by payment in advance and later collected such
payment from the issuing bank.

Type of Service

Foreign Bills Purchased: FBP is one of our services allowing customers (sellers / exporters) a working
capital under the service terms and conditions. Foreign Bills Purchased with Usance L/C, sold by
customers, will be bought at the discount rate stated by the bank.

Service Objectives

To provide customers a working capital for running business during waiting for a payment from issuing
bank after delivering all products under the L/C

Applicants' Qualifications:

48
 - Being international exporters
- Having a credit line with the bank

Service Terms/ Conditions:

Service Conditions

- Having a credit line with the bank

- If not, loan approval from loan department will be required case by case

Export ticket according to L/C can be submitted at the branch where the customer has an account or at
international business center or international trade department

Required Documents

- Request for Negotiation / Discount of Export Bills Drawn under Letter of Credit
Application
- Original L/C and L/C Amendment (if any) with L/C Advising Advice
- Bill of Exchange
- Documents as stipulated on L/C such as

- Commercial Invoice

- Products Delivery Documents such as Bill of Lading (B/L) or Air Waybill (AWB) or Trust Receipt /
Railway Receipt or Parcel Post Receipt etc.

- Insurance Policy

- Packing List

- Weight List

- Certificates such as Certificate of Origin, Inspection Certificate, etc.

- Other documents agreed by both parties

Benefits: Receiving working capital in time without waiting for the L/C issuing bank payment, to enhance
investment liquidity.

49
 Chapter : 5
Analysis of the Deposit Schemes
and Investment modes of Pubali
Bank

50
Deposit Analysis

Current Deposit:
In last three years, the total current deposit of Pubali Bank Limited was following amount (In
Billion) taka

Table:01

Year 2017 2016 2015

Total Amount of
Current Deposit Tk.(In 34.69 29.01 20.63
Billion)
Graphically Presentation is as follows:

Figure:01 Total current deposit of PBL from 2015-2017

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Savings Deposit
In last three years, the total savings deposit of Pubali Bank Limited was following amount (In
Billion) taka

Table:02

Year 2017 2016 2015

Total Amount of
Savings Deposit 70.06 62.20 58.63
Tk.(In Billion)
Graphically Presentation is as follows:

Figure:02 Total savings deposit of PBL from 2015-2017

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Fixed(Term) Deposit:
In last three years, the total fixed deposit of Pubali Bank Limited was following amount (In Billion)
taka

Table:03

Year 2017 2016 2015

Total Amount of
Fixed Deposit Tk.(In 66.41 61.94 55.40
Billion)

Figure 03: Total fixed deposit of PBL from 2015-2017

53
Others Deposit:
In last three years, the total others deposit of Pubali Bank Limited was following amount (In Billion)
taka

Table:04

Year 2017 2016 2015

Total Amount of
Others Deposit Tk.(In 5.26 5.30 4.15
Billion)

Figure 04 : Total others deposit of PBL from 2015-2017

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Investment Income:
In last three years, the total investment of Pubali Bank Limited was following amount (In Billion) taka
Table:5
Year 2017 2016 2015
Total Amount of
Investment Income 5.38 4.35 3.12
Tk.(In Billion)

Figure : 05
Total Amount of investment income of PBL from 2015-2017

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Loan, Cash Credit, Overdraft etc:
In last three years, the total Loan, Cash Credit, Overdraft of Pubali Bank Limited was following amount (In
Billion) taka
Table:06
Year 2017 2016 2015
Total Amount of
Loan, Cash Credit, 227.6 194.74 125.63
Overdraft Tk.(In
Billion)

Figure :06 Total Amount of Loan, Cash Credit, Overdraft of PBL from 2015-2017

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Industry Wise Distribution of Loan:
In last three years, industry wise distribution of Pubali Bank Limited was following amount (In Billion)
taka
Table:07
Year 2017 2016 2015
Total Amount of
industry wise 239.54 203.01 195.57
distribution Tk.(In
Billion)

Figure : 07 Total Amount of industry wise of distribution of PBL from 2015-2017

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Consolidated Investment (Government):
In last three years, Consolidated investment of Pubali Bank Limited was following amount (In Billion) taka
Table:08
Year 2017 2016 2015
Total Amount of
Consolidated 35.24 36.56 32.64
investment Tk.(In
Billion)

Figure :08 Total Amount of Consolidated Investment (Government)of PBL from 2015-2017

58
Consolidated Investment (Others):
In last three years, Consolidated investment of Pubali Bank Limited was following amount (In Billion) taka
Table:09
Year 2017 2016 2015
Total Amount of
Consolidated 24.37 18.44 20.32
investment Tk.(In
Billion)

Figure : 09 Total Amount of Consolidated Investment (Others)of PBL from 2015-2017

59
 Chapter: 6
Findings, Recommendations
and Conclusion

60
Findings of the Study
Deposit collection and investment are important factors for any bank to earning profits. Any banks
success depends on how much deposit they collect from their customers and how they invest it for
earning profit.. The major classes of deposits are identified as follow: Fixed deposits, savings
deposits, current deposits and bills payable. I have identified the following problems from deposit
analysis of Pubali Bank Limited.

 New Product: The attractive and unique products of Pubali Bank Limited are not drawing the
attention of customers.
 Interest Rate: The rate of deposit Scheme of Pubali Bank Limited is not fulfilling the customer’s
satisfaction.
 Account Maintain Charge: The service charge on deposit of Pubali Bank Limited is not very
much comfortable to meet customer’s expectation.
 Deposit Policy: The deposit policy of PBL is not that much favorable for the clients.
 Inadequate Customer Service: Customer can’t withdraw their profit or principal amount of
deposit scheme in right time.
 Lack of Manpower: PBL has lack of manpower to serve the growing customer demand. So they
are not being able to provide service to the customer in time.
 Insufficient ATM Booth: Lack of ATM Booth customers are not interested to deposit in Pubali
Bank Limited.
 Diversion of Funds: Incase of investment of the sample some businessmen try to diversify the fund
from the approved project to another. In this situation there is a risk of losing fund for the sample
because in this way they (businessmen) they try to make the project sick artificially. So, this
problem hampers the function of investment section.
 Market Fluctuation: The market fluctuation originated from inflation. for this reason the price of
product ups and downs from time to time. When a businessman purchases or imports a product by
taking financial support for the bank and if due to market fluctuation the price of that product is
increased then the demand of that product will be decreased. In this situation the product will be
lost its market and banks will be blocked against this product also. So, it is seem that market
function hamper the investment of the sample.
 Banking Service: Banking service is not fast enough. Often customer need to wait for a long time
for service.
 Marketing Strategy: Marketing strategy of the bank is very poor. They do not use any modern
advertising method to attract customers.

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Recommendations

I have some recommendation for Pubali bank limited. As in my internship period, I saw some
problems. Below I present my recommendations:

 The attractive and unique products of PBL should be drawn the more attention of customers.
According to open a new account PBL must require more and valuable documents from new
customers. It would be very helpful both Bank and the customers.

 Pubali Bank should increase their deposit rate to attract more customers.

 The service charge on deposit of PBL’s should be more comfortable to meet customer
expectation. Bank should offer more facilities to the customer’s such as credit visa card,
ATM machine etc. PBL must develop an electronic banking system to moderate the service.

 The deposit policy of PBL should be more clients favorable. They can offer new deposit
products to attract new customers

 In order to get a competitive advantage and to deliver quality service, top management should
try to modify the service

 PBL should hire more manpower to provide service more effectively and efficiently.

 PBL has to introduce their ATM booth across the country to meet up the customers demand.

 Practice amount of doubtful income declined constantly during the year as compared to the
past few years, indicating more carefulness of the management.
 PBL should arrange monthly/quarterly training courses/ workshops for the clients selected by
branches in order to promoted investment clients of the desired level.
 PBL should initiate different investment modes according to changing/ diverse needs of clients by
conducting huge research and study.
 To fulfill the vision of “mass banking”, PBL should grant investment portfolio to new
entrepreneurs/new businessmen/new companies etc.
 To gain success in the programs like “poverty alleviation” and “self reliant” specially in rural areas,
PBL should provided investment facilities on the basis of individual.
 PBL should concern about creative marketing strategy.

62
Conclusion
The fame of banks is expanding step by step which prompts increment rivalry too. All the Commercial
Banks are putting forth nearly similar items and administrations and relatively same their task framework.
Be that as it may, the manners in which they give the administrations are unique in relation to one another.
So individuals pick their bank as indicated by their fulfillment and need. Also, they will lean toward the
bank of which benefit is effortlessly open and justifiable. One the other hand, bank develops new items and
administrations to pull in their ideal clients. To put it plainly, PBL is such a Commercial Bank which is
rendering all business keeping money administrations to the clients notwithstanding make accessible
speculation strategies and SME fund to the a great many poor individuals of the nation. The Bank’s drive
towards market leadership as well as quality in choosing business will continue in the coming years
although competition is intensified with the opening of more financial institutions. The Bank is optimistic
that the volume of business will increase in future through pragmatic and market friendly policies. The
Bank shall continue to explore new fields of investment and take steps to open new Branches for Banking.
The bank should endeavor to adopt customer-oriented policies and introduce new techniques that will help
to earn profit and increase greater confidence of the existing prospective customers. They have confidence
in creating solid relational association with one another. Banks dependably contribute towards the financial
advancement of a nation. PBL contrasted and different banks is contributing more by putting the vast
majority of their assets in productive ventures prompting increment underway in the field of Export and
Import Business. Clearly the correct reasoning of this bank including setting up a fruitful system over the
nation and expanding assets, will have the capacity to assume an extensive job in the arrangement of
improvement of financing in a creating nation like our own.

63
Reference

Books:

 Weygandt kimmel kieso, 9th Edition, ‘Accounting Principles’.

 Rahman M. and others, (2015), “Internship Program for University Students 125 th Batch”

18th edition, Al-Biruni. (Rahman M. and others, 2015)

 Gitman, L.J. and Zutter, C.J. (2014) Principles of managerial finance - 13th edition. 13th edn.
Boston: Pearson Prentice Hall.(Gitman and Zutter, 2014)
 “Bank Management & Financial Services” 8th Edition. McGraw-Hill Singapore. - Peter
S. Rose & Sylvia C. Hudgins (2005)
 “Text Book on Islamic Banking”, (2008), 2nd Edition, November, Islamic Economics
Research Bureau.

Reports:
 Pubali Bank Limited. Annual Report (2013)
 Pubali Bank Limited. Annual Report (2014)
 Pubali Bank Limited. Annual Report (2015)
 Pubali Bank Limited. Annual Report (2016)
 Pubali Bank Limited. Annual Report (2017)
 PBL Yearly target file
 Brochures of PBL

 3rd Quarter Financial Statement 2018 of PBL

Websites:
 https://www.pubalibangla.com/
 https://www.bb.org.bd/

64