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Limited’, embodies the result of my own basic works, persuade under the supervision of _ MD. Hafijul Islam, Course Instructor & Lecturer, BBA Program, Northern College Bangladesh I further reaffirm that the information reported in the report is original one and it is my own basic work. ____________________________ MOHAMMAD FARUK KHAN BBA 2nd Batch ID no. B02412 Northern College Bangladesh . CERTIFICATE OF SUPERVISOR This is to certify that MOHAMMAD FARUK KHAN, student of BBA, session 20032004, bearing ID No. B02412 under Faculty of Business Administration, Northern College Bangladesh (Under National University), has completed the internship report on “Operational Commercial Bank: A Case study on Jamuna Bank Limited, Dhaka. I recommend the report for evaluation. I wish him every success in life. _______________________ MD. Hafijul Islam Course Instructor & Lecturer BBA Program Northern College Bangladesh (Under National University) 1/2A, Asad Avenue, Mohammadpur, Dhaka - 1207 PREFACE Practice makes a man perfect and practical knowledge is essential in order to introducing with the practical life. Theoretical knowledge has no impact without with the combination of practical knowledge. From this orientation institution, as parts of its academic curriculum sends its BBA final year students to various business concerns with a view to allowing students to get opportunity to acquire practical and professional knowledge. As a partial fulfillment of BBA in Marketing the writer of this report was
also assigned the task of preparing the term paper, the topic was to “Operational Commercial Bank: A Case study on Jamuna Bank Limited” The report has been prepared after careful observation of the all components of general banking, annual reports of the bank, official’s direct speech and on the basis of other research material such as journal, magazines etc. ACKNOWLEDGEMENT All praise is to the One to whom all dignity, honor and glory are due, the unique with perfect attributes, who begets not, nor is He begotten. He has not equaled, but He is almighty, omnipotent for preparing fruitfully this internship reports. I would like to extend my sincere gratitude to my course instructor Md. Hafijul Islam, Faculty of Business Administration, Northern College Bangladesh for his valuable advises and cooperation. I expressed my heartily and utmost gratitude and greatest indebtedness to M. A. WALID, Coordinator & Lecturer, BBA Program, Northern College Bangladesh. He has kept vigilance of all stages of my effort and has gone through all the written works with great patience. I am also grateful to MD. NAZRUL Sir, Assistant Manager of Gulshan Branch of JBL, Mrs. Tasnuva Islam, Mrs. Rebeka Haque, Md. Ashfaque-ullah, Md. Shafiul Alam, Md. Malay, Md. AREFIN, and all other Officials of JBL (Gulshan Branch) for their relentless efforts in carrying out my study. They providing me necessary information and extended of their hands to me. I can humbly tell that without their meticulous care, valuable suggestions and instructions it would not have been possible for me to complete the term paper. I would like to express thanks to my friends & fellow Rocky, ArafaT, and all of my wellwishers for supporting me to do best in such an academic work. I lack the space here to acknowledge all of the other individuals whose special efforts went into this paper. I offer intend my sincere thanks, and the finished report that they helped guide to completion. I, of course, have same full responsibility for errors or fact or emphasis. ACRONYMS AOF = Account Opening Form ATDP = Account Transfer Deposit Program BB = Bangladesh Bank BCD = Bearer Certificates of Deposit BLC = Bills under Letter of Credit BTB = Back to Back CC = Cash Credit CC (Hypo) = Cash Credit Hypothecation
CC (Pledge) = Cash Credit Pledge CD = Current Deposit Account CIB= Credit Information Bureau CIBTA =Credit Inter Branch Transfer Account CRISL= Credit Rating Information and Services Limited. CRR = Cash Reserve Requirement CRR = Credit Risk Rating CCS = Consumer Credit Scheme DBDS = Double balance Deposit Scheme DD = Demand Draft Dl = Demand Loan EDF = Export Development Fund ERF = Exporters Retention Quota FBL = Foreign Bill Lodged FC = Foreign Currency FDBP = Foreign Document Bills Purchased FDR = Fixed Deposit Receipt FEX = Foreign Exchange GBD = General Banking Division GOB = Government of Bangladesh HO = Head Office IBCA = Inter Branch Collecting Account IBTA = Inter Branch Transfer Account IBDA = IBC = Inter Branch Collection IRC = Import Registration Certificate I S A/C =Interest Suspense Account JBL= Jamuna Bank Limited LBC = Local Branch Collection LDBP = Local Document Bills Purchased LIM = Loan against Import Merchandise LRA = Lending Risk Analysis LTR = Letter of trust Receipt MPPS = Monthly Profit Paying Scheme MSS = Monthly Savings Scheme MD = Managing Directors NFCD = Non- Residential Foreign Currency Deposit OBC = Others Branch Collection PO = Payment Order RFCD = Residential Foreign Currency Deposit SB = Savings Account SD = Sundry Deposit SOD = Secured Overdraft STD = Short Term Deposit EXIM = Export Import
ABSTRACT Internship program is an integral part to fulfillment of BBA Degree of National University. This program is actually a juncture of academic and professional life dealings. Banking constitutes an important segment of the financial infrastructure of any country. Generally, Banking means deposit mobilization and deployment of those deposits into advances or investments in different sectors. For completion of my internship I was placed in Jamuna Bank Limited, Gulshan Branch, Dhaka. After twelve weeks practical orientation to all of the departments and completion of the internship in this branch I was finally prepared this report. I devoted my utmost effort and attention to learn the banker’s functions in practice in dealing with Foreign Exchange Business and clients. I have rendered my all knowledge and efforts to present this report on “Operational Commercial Bank: A Case study on Jamuna Bank Limited’’ at Gulshan Branch. In his report an attempt has been made to highlight the general banking system of Jamuna Bank Limited. I have incorporate a brief overview of the organizations history, functions, business philosophy, departmentation, ownership pattern, foreign correspondents, overseas banking operations and many other concerned departments. The attempt will also give the reader a brief knowledge about the officials, service divisions and departments of the branch. The report will reflects the critical Operational Commercial Bank followed by the Jamuna Bank’s officials while employing services to the clients from the opening of an account and others banking operation systems. The Gulshan Branch of Jamuna Bank Limited is marching in a very aggressive way with its well-organized and systematic procedure from its very inception. Despite of well operation it also lacks some grease in motivating and attracting the clients and also in expedition of the working hands of the department. Chapter 1: INTRODUCTION 1.1 1.2 1.3 1.4 1.5 1.6 Prelude Statement of the problem Background of the study Rationale of the study Scope of the study Objectives of the study
cash receipt and payment. Due to the increased demand of modern times. Gulshan Branch for eight weeks in order to complete a short internship program for getting practical knowledge. This is an orientation to the entire banking department and finally a study on a particular arena of “Operational Commercial Bank: A Case study on Jamuna Bank Limited”. The main task of any commercial bank is to provide day to day services to its valued customer. Practical knowledge is must for the completeness of theoretical knowledge. and make a complicated situation.1 Plans for Study Limitations of the study Prelude: Theoretical knowledge doesn’t highlight the reality as clearly as practical knowledge.3 Background of the Study: Knowledge and learning becomes perfect when it is associated with theory and practice. appraisal and sanctioning of various types of loans. completing the clearing procedure. Theoretical knowledge is guideline. Recognizing the importance of practical experience. Theoretical knowledge gets its perfection with practical application.7 1. but practical knowledge is experience oriented. This practical orientation is also a positive development in professional arena. 1. Now it is needed to compliance with this knowledge with in practical orientation. This internship program brings me closer to the practices in banking and helps to develop a little understanding about the detailed mechanism of the Overall Banking System of Jamuna Bank Limited. completing the foreign exchange relating activities and maintenance of banks accounts. With the increased need of time banks plays a vital role in case of overall development of the civilization. Department of has introduced a twelve-week practical exposure as a part of the curriculum of Bachelor in Business Administration in Marketing. While working with both of my supervisors in which I can make a detail research and present my understanding about that operational area in this report. In this state I have worked to reflect my entire efforts at analyzing the experience of practical orientation related to overall banking activities of the JBL . 1. This system includes account opening.2 Statement of the Problem: Now a day’s commercial bank is considered as the transfusing power of overall economy of any modern country. So both are necessary as a BBA student we have gathered enough theoretical knowledge and techniques.8 1.1. general banking activities are going to rapid changes. After the completion of the 8 semester courses I was placed in Jamuna Bank Limited. It is the time to give more concentration on general banking system.
With the rapid changes of time mans are readily depend on banking services in case of handling cash. Bank plays a pivotal role in case of overall financial and socioeconomic development of any modern country. deposit of cash. The economic development of our country mainly depend upon the efficiency of the banking results is so far as. function. 1. The scope of the organizational part covers the organizational structure.5 Scope of the Study: The field of my study was the “Operational Commercial Bank: A Case study on Jamuna Bank Limited. what are its performances in the previous years etc. The study covers a period of 5 (Five) financial and operational years from 2001 to 2005. the Bangladesh Bank has decided to extend considerable help in every respect of general banking to concerned people. Customers favoring to a bank by providing the opportunity to the bank to serving him. skilled and enterprising workforce is the sine-qua-non for the progress and development of a service oriented industry like Bank. clearing system.1. all are on the project part of the report. appraisal of loan and project proposal. opening and payments of various type of letter of credit. Like other nationalized and non-nationalized commercial banks the Jamuna Bank limited serves the nation by providing various modern banking services and products. mechanism of vault system. how it remits the money to the foreign clients.educated. and departmentation and business performance of Jamuna Bank Limited as a whole. The prime objective of this report is to identify. exporting and importing the goods.” 32. evaluate and analyze the pros and cons of the Overall Banking . background. whether the bankers have been able to read the economic situation properly and are successful in selecting the promising industrial sectors seeking import and export assistance to grow. using of banking software and hardware. So it is very much needed to develop the general banking practices in order to provide better day to day banking services to the valued customers. So as an Internee I thought of having special knowledge on this field of increased importance. Mohakhali C/A Dhaka-1212.4 Rationale of the Study: Well. objective. and also financing in various industrial and business projects. 1. transferring cash.e. From very first emergence and inception of modern civilization. accounting systems of the bank.. dedicated.6 Objectives of the Study: In this paper an attempt has been made to study the Overall Banking System. For conducting this study an overall knowledge on total banking system was necessary because the various departments of banking are linked with each other due to some partial proceedings. The main part covers the operational scenario of Overall Banking System of Jamuna Bank Limited. Because as a service oriented industry a bank should believe that customers is all and the king. The government of our country and the central bank i. This refers that how the bank helps the customers in opening account. find out the problems and recommend some possible measures to solve them. withdrawal of cash.
System to convey the knowledge to the concerned people or to the unknown fellows. Chapter-2: It deals with various methodological issues and concepts used in the report. 2. ← To describe the total procedure of Overall Banking System. which could be very much useful. ← To analyze the performance of Jamuna Bank Limited in case of day to day operation. In case of performance analysis secondary data are used. appendix etc. cash payments and receipts. In fine the report has been come to an end by dint of reference section which includes bibliography. the whole study has been divided into the following chapters: Chapter-1: Introductory issues. The main objectives of the study are as follows: ← To know and outline the concept of General Banking. remittances. 4.8 Limitation of the Study: Despite all out co-ordination from the bank officials. Chapter-5: It deals with analytical findings of the study such as account opening and schemes. Only four years accounting data are considered for financial analysis . Chapter-6: This chapter focus upon on the problems faced by the bank and also some possible recommendation to solve the problems. ← To find out and analyze the major problems by JBL in case of Overall Banking Practices. Chapter-3: It focuses the banking scenario of Bangladesh. 1. loans and advances. The notable some of these are as under: 1. 1. 3. 5. Chapter-4: It deals with corporate profile of Jamuna Bank Limited. clearing and foreign trade and foreign exchange etc. ← To recommend some possible measures to overcome the problems. To do so. The Bank authority was very busy. Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason. so they could not give me enough time for discussion about various problems. Learning all the banking functions within just twelve weeks was really tough.7 Plan of the Study: Since it has stated earlier that the major objectives of the present study are to know the Overall Banking System of Jamuna bank limited. researcher faced some limitation.
3 Sources of Data . The department should be conducted with the company at least one month ago. The financial assistance provided by the department is insufficient. Chapter 2: Methodology of the Study 2. so there may arise some faults in this report though the researcher have tried his level best to over come the problem. 9. various types of analysis did not become possible. It designed in a way so that it is correspondent to achieve the objectives of the study. 10. 2. It includes designing samples. collection procedure of data. Finally. Moreover. Bangladesh Banks Booklets. The knowledge of the researcher was also a problem here. this is the researcher first experience on job.2 Introduction The study covers a period of 5 (Five) financial and operational years from 2001 to 2005.3 Sources of data 2. 8. In perspective of lack sufficient money. Head Office Officials and Mohakhali Branch Officials of JBL extended their hands of cooperation in supplying relevant data and information. To prepare an analytical report need financial assistance.2 Introduction 2. Annual Accounts and Official Records of Jamuna Bank Limited.1 Prelude Methodology is an essential part of any research-based study because this will highlight the preparation of the report and methods used in case making the report.5 Analysis of data 2. 7. Another problem is that communication gap. sources of data used.6 Terms and concepts used in the study 2. which may not actual one for the research purpose.4 Methodology of data collection 2. techniques of analysis of data etc. The main sources of data used in the study are Annual Reports. Because the researcher was not familiar with practical knowledge in this regard before. 2. published literatures of journals.1 Prelude 2. This study completely depended on official records and annual reports.6. Books and Government publication were used for preparing the report.
In preparing this report. To get the real information and data about general banking services. different article published in the journals and magazines. ← Annual Reports of Jamuna Bank Ltd.4 Methods of Data Collection: In conducting the study the data have been used were collected by using two methods. ← Periodicals published by the Bangladesh Bank ← Different seminar papers on overall banking practices. 2. Secondary sources are: ← Relevant books. Through this method. Primary Sources are: ← Asking the respective officers ← Direct communication with the clients ← Exposure on different desk of the bank ← File study. asks a person being interviewed (the respondent). questions to obtain answer pertinent to research problems. Interview Method Interview is a face to face situation where one person (the interviewer). Journals etc. The researcher has observed all the activities of general banking services. Newspaper. both primary and secondary sources of information have been used. researcher asked some respondents and clients directly. The methods are as follows: Observation Method Observation method may be defined as the systematic watching of facts and events occurring in the field of study. he has collected some data about general banking services. 2. Primary Sources of Data When data are collected through direct searching in the field then it is called primary source of data. Secondary Sources of Data The secondary data are collected from Internet.5 Analysis of Data .
employee & branch performance etc. People with limited income can avail credit to buy household goods including car computer and other consumer durables. Total advances. Total deposit.e. In this study the main analytical tool is Overall Banking System. Net profit. which is considered as the most representative or typical value for a given set of data. . Reserve fund. Bad debts: Bad debts are considered as fixed expenses being it is generally treated as administrative expenses. Capital structure: Capital structure refers to the permanent financing of the company represented by owned capita and loan/debt capital. “Banker inched a body of person whether incorporated or not who carry on the business of banking”. Banks: Banks are considered as service producing industry and standard norms for industrial enterprises are used in some cases to compare ratios. Crossed Check: Those which can only be paid to banker for crediting the proceeds to the accounts of its payee are called Crossed Check. Burden: The different between non-interest /profit expense and non-interest/profit income is defined as the Burden. which are fixed in future.e. 2. Borrower: In this study a borrower is a person who enjoys credit facilities from the bank in order to start or organize an enterprise especially one involving financial risk. were selected to measure the performance. 2001-2005.6 Terms and concepts used in the study Average: An average is single value. Consumers Credit Scheme (CCS): Consumer Credit is a relatively new field of collateral-free finance of the Bank.The study covers the selected period of five years i. Total investment. Banker: In this study banker means as it is defined by English Bill Of Exchange Act 1882 i. All the necessary data are taken and analyzed in a systematic manner.
Gross profit: Gross profit is the result of the relationship between prices sales volume and costs. Customer: In this study customer means “A person who has some sort of an account either deposit or current account or some similar relation with a bank and from this it follows that any person or corporation may become a customer by opening deposit or current account or by accepting an once on current or loan account or even by accepting a deposit receipt in acknowledgement of money left with the banker. Net Worth: . travelers check. letter of credit and bill of exchange expressed or drawn in Bangladeshi currency but payable in any foreign currencies. which may help them to be economically self-reliant. 1972. Hire Purchase: To purchase some things.Current assets: Current assets include cash in hand and with bank. Article 16 of the Bangladesh Bank Order. credits and balances payable in any foreign currency and draft. Equity: Equity includes paid up capital quasi-equity. the Bank gives loan to client at 15% interest. medical equipment. Lease Finance: This has been designed to assist and encourage the genuine and capable entrepreneurs and professionals for acquiring capital machinery. The goods must have insurance by Insurance Company. reserve fund and other reserves. All deposits. Foreign Exchange: Foreign Exchange means foreign currency and it includes any instrument drawn. investment and other assets. Terms and conditions of this credit have been made easier than before in order to help the potential entrepreneurs to acquire equipment of production and services and repay the liability gradually from earnings on the basis of “Pay as you earn”. The client has to pay the principle and interest as a installment basis for a fixed period. accepted. made or issued under clause (13). Current liabilities: Current liabilities include deposits and other accounts (other than fixed deposits and deposit pension scheme) bills payable and other liabilities. computers and other items. Letter of Credit: The contract between the importer and the exporter is given a legal shape by the banker (authorized dealer) who undertakes to make the payment for the imports on behalf of the importer. Security is needed here.
the first number being numerator and the later denominator. It is the difference between total assets and total liabilities.6 Private commercial banks 3. The present maximum range of loan is Tk. Pledge: In a pledge the customer delivers the possession of the securities to the banker and the banker holds the possession of securities until the debt is discharged.2.2 Introduction 3. Small Loan Scheme: This scheme has been evolved especially for small shopkeepers who need credit facility for their business and cannot provide tangible securities.3 Types of Bank 3.4 Nationalized commercial Banks 3. Payment against Document (PAD): The bank pays the money to the foreign company against Foreign L/C on behaves of his client.1 Prelude . Chapter 3: Banking Scenario of Bangladesh 3. It may also be defined as the relationship or proportion those one-amount bears to another. Spread: The difference between total interest/profit earned and totals interest/profit paid. The client pays this amount and interest later to bank. (current assets – current liabilities). Working capital: Working capital refers to the net working capital i.1 Prelude 3.Net worth is the wealth of the shareholders at book value.5 Specialized Banks 3. Total income: Total income is considered as total income after provision for bad and doubtful debts.00 Lac.e. It plays a major role in determining the profitability of a bank. Ratio: Ratio is a fraction whose number is the antecedent and denominator the consequent.
Of the six commercial banks. Bangladesh also has a Central Bank named Bangladesh Bank. and Uttara Bank Ltd. the banks operating in Bangladesh (except those incorporated abroad) were nationalized. donations and management and investment of Foreign Exchange Reserve in the foreign countries. The two Govt. So in this study the Basic has been treated as a specialized bank. 3. Due to relentless struggle of Bangladesh Bank and some other well-organized Commercial Bank the overall scenario is going to rapid changes. ANZ Grindlays Bank was merged with Standard Chartered Bank during the Quarter (January-March.Bangladesh is a country which attains Independence in the very recent time. The branches of foreign banks operating in Bangladesh are being treated as foreign private banks. Bank of Small Industries and Commerce Bangladesh Ltd. Central Bank: Like other sovereign country of the world. the financial and economical infrastructure of the country is not in sound and strong position. One of the major functions of the Bangladesh Bank is to maintain the international monetary relations in the form of receiving foreign aid. But in the recent time this scene is going to past.400 millions. Government decided to treat the bank as a specialized bank again. From July 1995. grants. Pubali Bank Ltd. the minimum aggregate value was Tk. In March 1987 Bangladesh Krishi Bank was bifurcated and another specialized bank emerged as Rajshahi Krishi Unnayan Bank (RAKUB) for Rajshahi Division.200 millions.50 Lacs and conducting their affairs to the satisfaction of Bangladesh Bank have been declared as scheduled banks in terms of section 37(2) of Bangladesh Bank Order 1972. 2003). 1991. Later on. which function is lending and borrowing. (BASIC) started its operation as a private bank from September 1988. There are two kinds of banks.3 Types of Bank Bank is that kind of organization. owned specialized banks were renamed as Bangladesh Krishi Bank and Bangladesh Shilpa Bank. were subsequently transferred to the private sector with effect from January 1985. In terms of section 13 of Bank Company Act.2 Introduction After Liberation. The country is also a developing country. Like other developing country. In 1997. It was established with a view to performing those works usually done by the central banks spreading across the world. BASIC was brought under direct control of the Government and was reckoned to as a specialized bank with effect from June 1993. These banks were merged and grouped into six commercial banks. According to the latest Government Gazette notification (dated the 28th July 1999) the above mentioned value has been fixed at Tk. Al-Baraka Bank Ltd an Islamic private commercial bank was renamed as the Oriental Bank Ltd. again the BASIC was categorized as a private bank. 3. The emergence of Bangladesh Bank in 1971 . All such banks operating in Bangladesh with different paid-up capital and reserves having a minimum of an aggregate value of Tk.
a bank ordinance was introduced by dint of “President Order 127”. insurance company etc. The main function of the Bangladesh Bank is (a) Money Circulation. creating bill of exchange. There are some local Commercial Banks and some are Foreign Commercial Banks Following are some name of local Commercial Banks. that’s called Commercial Bank. (BASIC) Rajshahi Krishi Unnayan Bank (RAKUB) Private commercial banks: Foreign Banks: Bank Al-Falah Ltd Citi Bank N. Commercial Banks has some specific functions these are medium of exchange. build up capital.to control financial organizations like commercial banks. Commercial Bank: Which Bank borrowing from people and invest for many business. just now. It works for the government and implements the government financial policies. collecting income tax. There are 52 Commercial Banks are survived in Bangladesh. Their main function is borrowing and lending. controlling lone. Other functions of Central Bank is. bank of the commercial banks. (b) Banking Function.after a bloody freedom that claimed millions of people necessitated the birth of Bangladesh Bank as the symbol of economic freedom and sovereignty. control the value of money. clearing house. Nationalized Commercial Banks: Agrani Bank Janata Bank Rupali Bank Sonali Bank Specialized Banks: Bangladesh Krishi Bank (BKB) Bangladesh Shilpa Bank (BSB) Bangladesh Shilpa Rin Sangsthga (BSRS) Bank of Small Industries and Commerce Bangladesh Ltd. Under this ordinance the Government acquired all assets and liabilities of the former Dhaka Regional Office the “State Bank of Pakistan” and declared the Bangladesh Bank as the Central Bank effective from 16th December 1971. representing of the governments work observe the development of banking system etc.A Commercial Bank of Ceylon Ltd. As a result in the 31st October 1972. National bank of Pakistan Standard Chartered Bank State Bank of India . Habib Bank Ltd. helping international business etc.
The First Security Bank Ltd. Standard Bank Ltd. The Oriental Bank Ltd. (IFIC) Jamuna Bank Ltd. (DBBL) (Joint Collaboration) Eastern Bank Ltd. (NBL) National Credit and Commerce Bank Ltd. Islami Bank Bangladesh Ltd. (Joint Collaboration) Bangladesh Commerce Bank Ltd. Southeast Bank Ltd. (HSBC) Woori Bank Local Banks (Incorporated in Bangladesh excluding Islamic Banks): Arab Bangladesh Bank Ltd. Chapter 4: Corporate profile of Jamuna Bank Ltd. (EBL) Export Import Bank Ltd.1 Prelude 4. Islamic Banks: Al-Arafah Islami Bank Ltd. 4. BRAC Bank Ltd. (SIBL) Shahjalal Islamic Bank Ltd. The City Bank Ltd. (MTBL) National Bank Ltd. Premier Bank Ltd. The Trust Bank Ltd. Dutch Bangla Bank Ltd.(MBL) Mutual Trust Bank Ltd. (IBBL) Social Investment Bank ltd. (EXIM) International Finance Investment and Commerce bank Ltd.2 Introduction 4.3 Key factors of JBL . Pubali Bank Ltd. (UCBL) Uttara Bank Ltd. (JBL) Mercantile Bank Ltd. (NCC) One Bank Ltd. Prime Bank Ltd. (BCB) Bank Asia Ltd. United Commercial Bank Ltd.The Hongkong & Shanghai Banking Corporation Ltd. Dhaka Bank Ltd.
The sponsors are reputed personalities in the fields of trade. Jamuna Bank Limited is a highly capitalized new generation bank with an Authorized capital and Paid – up capital of Tk. The Management of the bank constantly focuses on understanding and anticipating customer needs. so the bank’s responsibility is to diverse strategy and products to cope with the . By June 2005 the Paid –up capital will be doubled. 1 in Bogra.2 Introduction Jamuna Bank Limited is a Banking Company registered under the Companies Act. commerce and industries. The corporate profile will introduce us about the overall corporate goals and objectives of the bank. 5. 1 in Munshigonj. 2 in Noagaon. More branches are planned to be opened soon. The Bank started its operation from 3rd June 2001. Dhaka – 1000.8 JBL at a Glance 4. JBL undertakes all types of banking operations to support the development of trade and commerce of the country. 4. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Limited the only Bengali named new generation private commercial Bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers. Rajuk Avenue. 1 in Gazipur (including 5 rural branches). The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking.7 List and address of Branches 4.6 Organizational Hierarchy of JBL 4. 4 in Chittagong. a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity.4. 1994 with its Head Office at Printers Building (2nd & 8th Floor).4 Operational performance of JBL 4. Currently the Bank has 23 branches: 10 in Dhaka. 1600 million and 429 million respectively. 3 in Sylhet. The Bank has established with some clear vision beside of the prime objectives of earning profit. M Nazrul Islam is the person of the country having experience in working as Managing Director/ Chief Executive Officer in different banks and financial concerns.1 Prelude Jamuna Bank Limited is highly capitalized well-organized and well-equipped third generation modern bank. The management team is headed by Mr. The scenario of banking is changing day by day.5 Management Team of JBL 4.
Has already achieved tremendous progress within only five years. ← To introduce fully automated systems through integration of information technology. The managing Director of the Bank is a forward-looking senior banker having decades of experience and multi-disciplinary knowledge to his credit. Jamuna Bank Limited. The bank has already top out as a quality service provider and is known for its operation. 4. ← To keep risk position at an acceptable range (including any off balance sheet risk). Objectives: ← To earn and maintain CAMEL rating ‘strong’. ← To remain one of the best banks in Bangladesh in terms of profitability and asset quality. A team of experienced banking professionals is efficiently managing the Bank. ← To maintain adequate liquidity to meet maturing obligations and commitments. Corporate Slogan: Vision: “To become a leading banking institution and to play a pivotal role in the development of the country”.changing environment. Jamuna Bank Limited offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. Mission Statement: “The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth. ← To ensure an adequate rate of return on investment. ← To maintain adequate control system and transparency in procedures. reasonable return and contribution to the development to the country can be ensured with a motivated and a professional workforce”. ← To maintain a healthy growth of business with desired image. .3 Key Factors of JBL Sponsors and Management: The sponsors of Jamuna Bank Limited are leading entrepreneurs of the country having stakes in different segments of the national economy. ← To establish relationship banking and improve service quality through development of Strategic Marketing Plan.
Organizations are open system that needs careful management. policies. . And the process always goes on. ← To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. ← To pursue an effective system of management by ensuring compliance to ethical norms. ← To strive for customer satisfaction through quality control and delivery of timely services. procedures and practices to enhance the ability to extend better service to customers.1000. We involve with the changing needs of our customers. ← To train and develop all employees and provide them adequate resources so that customer’s ‘Need’ can be reasonably addressed. practices and procedures to all employees in a timely fashion. ethics in banking and accountability to the shareholders in corporate governance. advances. Jamuna Bank Limited pledge bound to keep it free from the clutches of loan defaults culture. ← To ensure optimum utilization of all available resources. ← To review and update policies. substantial improvements in deposits. profitability and productivity. ← To identify customer’s credit and other banking needs and monitor their perception towards our performance in meeting those requirements. transparency and accountability at all levels. profit. Corporate Governance: The organizational structure and corporate governance of Jamuna Bank Limited Reflect the determination to establish sustain and increase its strength for a strong base as a customer oriented bank with a transparent management. Strategic Business Plan and Strategies: The ‘Strategic Business Plan’ covering the period up to December 2005 has been formulated. integrity in dealings. The organizational structure and corporate governance of Jamuna Bank Limited Reflect the determination to establish sustain and increase its strength for a strong base as a customer oriented bank with a transparent management. transparency in performance.← To develop and retain a quality work force through an effective Human Resource Management System. All our units are the center of excellence. Jamuna Bank Limited always pursues the principles of openness. ← To rise up capital up to Tk. the ‘Three Year Strategic Business Plan’ covering the year 2007 is in progress. Our underlying commitment to professionalism and a single-minded devotion to service to our customers characterizes our style in all operations. ← To promote organizational effectiveness by openly communicating plans. ← To cultivate a working environment that fosters positive motivation for improved performance. The document visualizes addition of at least 5 (five)-retail outlets.00 million by 2005. disclosure and compliance to regulatory authorities. Moreover.
Rules and Regulations of Bangladesh Bank and other Regulatory Authorities. Personal Loan For Women. Shop Finance Scheme etc. Their role remains sharply bifurcated. products are Monthly Savings Schemes. Drawing arrangements with the overseas exchange houses has already been established to bring home remittances into the country through the banking channel. The Management enjoys full independence in managing the banking industry. It. The Board formulates policies and frames of operation. Banking Companies Act-1991. Consumer Credit Scheme. especially its credit portfolio without any undue influence from outside. In Corporate Governance. JBL also introduced Q-cash ATM cards for its valued customers giving 24 hours banking services through Debit Cards. however. we strictly comply with the requirements of Companies Act1994. efficient. JBL offers the following services to its valued customer: ← Retail Banking ← Deposit Schemes ← Remittance and Collection ← Import and Export handling and Financing ← Loan Syndication ← Project Finance ← Investment Banking ← Lease Finance ← Hire Purchase ← Personal Loan for Woman ← 24-hours Banking: Q-Cash ATM facility ← Islamic Banking ← Corporate Banking ← Consumer Credit Scheme ← International Banking . Products and Services: The Bank has an array of tailor made financial products and services. Established correspondent relationship with most leading international banks in 105 countries through 316 correspondents to cover all-important financial sector of the world.The bank ensures orderly relation between clearly defined functions of the Board of Directors (BOD) and the Management. functions are reutilized. promote general welfare to the society and infuse its people to serve the nation. The management implements them and acts within norms. Correspondent Relationship: Jamuna Bank Limited. suitable and dynamic way o foster progress. Such. Lease Finance. JBL endeavors to increase its network of correspondent relationship with the most international banks and financial institutions to cater for the expanded needs of its customers globally.
The key features of JBL online banking are: . Our customer can transact round the clock through 45 ATMs and more than five hundred point of sales located at Dhaka. JBL contracted Square Informatics Limited. – Tele-Banking Network. Square Informatics Limited. to acquire a fully equipped data center at Bank’s Computer Division. Servers. Gazipur and Dhaka from the very first day of operation. And Metronet BD.Branch Network. -Real time any branch banking. Always aware about this fact and have eagerness for providing world class banking facilities to its valued customers. -POS (point of sales) Network. On-line banking system is the solution. which was possible due to the dedication by all the members of JBL computer team. The BOD and Management of Jamuna Bank Limited. Features of Q-Cash ATM are: . Taking future visions for improvements of the projects and minimizes the cost from the very beginning JBL established centralized integrated On-line system among all of its branches. The customer of JBL can now enjoy the world class banking service locally at a very reasonable cost through the fully automated On-line banking system. Ltd. With this view a group of talented IT Professionals under the excellent leadership of the Managing Director started the journey to reach the ultimate goal. which operate ON-LINE BANKING SERVICE. JBL is the only 3rd Generation Bank. switching software. Flora Bank On-line Banking software. -Platform independent. Provides information/data through satellite and Metronet provides information/data via optical fiber. . JBL started its expedition at the middle of May 2004 for implementation of real time On-line banking system and within a very few month and hard working of the team the Bank reached the successful implementation of its On-line computerized project. – Corporate MIS facility.ATM Network. To get maximum speed for operating the On-line system. chittagong. Delivery channels of JBL online banking are: . The bank is offering Q-Cash ATM for ensuring 24 hours banking servies. All branches were added in JBL’s On-line network at Chittagong. Sylhet and Khulna. ATM. data storage system and other hardware simultaneously set up. – SMS Banking Network. Head Office. The Disaster Recovery System (DRS) has been established. – Internet banking interface – ATM interface.Centralized Database. – Internet banking Network.Online Banking: Banking sector has become very competitive and to provide more satisfaction and advantages to the customers at a very low cost. Transfer of data from old system to On-line system started in phases and all the then existing branches were brought under the new centralized system within a short span of time.
The Bank also maintain an effective system of Internal Control. Success of Bank . –Utility bill payment. 01 (One) is Principal and other one is Eminent Banker.2005. risks and returns are evaluated with a goal of producing sustainable revenue. The Bank’s credit policy guideline and procedures as continuously reviewed and upgraded by the well established Internal Credit Committee. Risk Management: Bangladesh bank as a regulatory body advised all banks to implement an effective risk management system focusing on five core risks such as: ← Asset Liability management ← Credit Risk Management ← Foreign Exchange Risk Management ← Internal Control and Compliance ← Prevention of Money Laundering These risks are termed as an integral part of business and such risk management and monitoring of loan portfolio was always treated with the highest priority in JBL. reducing earnings volatility and increasing shareholder’s value. in maturity mismatch between asset and liabilities has always been reviewed in the ALCO meeting to maintain acceptable risk. which now stands at a negligible 0. Chittagong on November 27. JBL’s Shariah Council consists of 06 (Six) members. Islamic University. the total Islamic banking branches stands at 02 (two).46%. Human Resource Management: Jamuna Bank Limited recognizes the importance of employee participation in the maintenance of standards and general well being of the organization. -Cash withdrawal. Features of Q-cash point of sales are: .Retail purchase. In the year 2004. among the m 02 (two) are Khatib. The Bank is always trying to establish superior monitoring of its credit risks and returns. Jamuna Bank Limited opened another Islamic banking branch at Jubilee Road. The already existing Naya Bazar Islamic Banking branch started its operation from October 25. Islamic Banking Branch: –Account transfer. 01 (One) is Vice Chancellor. –Balance inquiry. -Balance inquiry.-24 hour banking service. establishing systems and procedures to scrutinize the transactions. encompassing key back up procedures and commissioning of proper governance structure. 2003. JBL is always aware of classification of advances. 01 (one) is Ex-Economic Advisor. the Shariah Council of JBL conducted 03 meetings to discuss all aspects of Islamic Branches operation. During the year 2004.
Jewelry ← Export Oriented Finished Leather goods ← Export Oriented Jute Products ← Pharmaceuticals ← Export Oriented Syringe/ Needle ← Export Oriented Artificial Flower ← Construction ← Financial Institution ← Telecommunication ← Construction Materials ← Cosmetics and Toiletries ← Urban Housing ← Small and Cottage Industries . knowledge. House Building Loan etc. Gratuity Fund. JBL’s human resources policy and practices are designed to secure the goodwill. JBL’s human resource management policy is to identify the right combination of skills. themselves ands the country as whole. Target Market for Loans and Advances: ← Agro-processing Industry ← Textile Spinning. behavior and values and divert them from the welfare of the Bank. Car Loan. The Bank has already allocated a space to establish a well-organized Training Institute. employees are invited to participate in multidisciplinary quality and process improvement activities. JBL always have the view of hiring the best people Both from local and foreign banks and to recruit talents through competitive exams.depends on its employee working together as a team for the interest of the banks. JBL’s banking strategy is to provide excellent service to its customer through a highly motivated and engaged people. The bank has established and well recognized policy of encouraging employee involvement through communications and consultation on a wide range of uses. like Provident Fund. commitment. motivation. Wherever possible. JBL has well thought plaices for the welfare of its employees. and contribution of all employees to achieve mission and objectives of the bank. where internal and external trainers will conduct Bank’s in-house training program and such programs will be designed to continuously upgrade itself within the latest development in the banking as well as information technology. and implementing programs to develop and retain high quality human resources. Superannuating Fund. Dyeing and Printing ← Export Oriented Readymade Garments ← Food and Allied ← Paper and Paper Products ← Engineering and Steel ← Computer Software and IT/Data Export ← Export Oriented Gem. JBL draws from the best available training programs and facilities both international and domestic to meets its training and training environment needs and globally benchmarked skills and capabilities. The management believes in having a strong and vivacious workforce to take the bank towards the path of shining progress.
74%. 4. 2001 with an authorized capital of Tk. liquidity and some other financial criteria.63 million and the net profit stood at Tk. ← Dealing Room Services for Corporate Customers and high net worth Individuals. Capital Adequacy Ratios: In accordance with the set criteria of Bangladesh Bank.00 million. to earn adequate profit and maintain overall solvency. ← Full Real Time On-line banking. Like other banks JBL also tries to maintain adequate liquidity. 1600.4 Operational Performance of JBL The overall success of any financial concerns depends upon its profitability.70 million of 2004 registering a growth rate of 32. In 2004 the paidup capital of the bank stood at Tk. ← SMS Banking. 390.00 million ordinary shares of Tk. 199. 100 each.82 million (Profit after Tax & Provision). 100 each and the bank started operation with a sound capital base of Tk. JBL has planned to expand its network with the following arenas by providing Electronic Banking Products: ← Full Duplex On-line Banking System. ← Introduction of new Liability/ Asset Products.00 million of 16. ← Internet Banking. B. ← 24-hours banking: Q-Cash ATM. C. ← Opening of new branches. ← Expansion of business network at home and abroad. 163. ← Tele Banking. As per the provision of .00 million of 4. Capital Structure: Jamuna Bank Limited commenced its operation on June 03. To meet the changing need of the customers. Provision against Tax for the year kept for Tk. solvency. the bank adopted BIS risk adjusted capital standards to measure the capital adequacy. Profit: Against 273. 429. A.29 million ordinary shares of Tk.← Micro Enterprise ← Infrastructure ← Liquefied Petroleum Gas (LPG) ← Compressed Natural Gas (CNG) ← Small and Medium Enterprises (SME) Future Thrust: The Bank has started the process of formulating a long term Strategic Plan so as to maintain the momentum of overall growth and strong performance in its core business.
Treasury Division continued its active participation and also a significant growth in the year 2004.67 |77. CDBL electronic system etc.55% from Tk. C.33 | |Total Capital (Tier I+ Tier II) |916. all the commercial banks must maintain at least 9% of its risk-weighted assets as Capital. the only Bank of 3rd Generation Banks was selected as PD by Bangladesh Bank for secondary trading of Govt.60 million to Tk. The quantum and break-up of capital of the bank are as follows: |Particulars |2005 |2004 | |Tier I Capital |807.53% from 32. but also been able to maintain a much higher Capital Adequacy than required.up Capital |429.Bangladesh Bank’s Capital Adequacy Circular BRPD 08 dated 7th September 2002.33 and total capital by 39. 483.54% of 2004 reflects substantial increment in operating assets in 2005.47 |101. D.37 million to Tk.01 | |Retained Earnings |228. The Asset and Liability Committee (ALCO) of the Bank monitors the activities intensively.17% as at 31st December 2005 as against 11.33 |0. .33 | |1% Provision against Unclassified Loans |108.Efforts are being made for augmentation of low cost deposit in order to accommodate good customers at a competitive price.40% from Tk. 67. 674. In 2003 JBL.99 |67.00 |429. Deposit & Deposit Mix: The deposit position of the bank was Tk. Reuter3000Xtra.32 | |Paid. Securities owing to its excellent performance in the Money Market.32 |67.65 million. 451. through its weekly meetings.14 |607. 10.65 | From the above table it reveals that Jamuna Bank Limited was able to increase its capital by 34. The Dealing Room of JBL is well furnished and equipped with latest equipment like Voice Recorder.46 |674. The activities of FEX and money Market have been centralized with complete segregation of Front & Back Office activities.31 | |Proposed Bonus Share ||| |Tier II Capital |109. Jamuna Bank Limited was able not only to maintain the required capital. Through the activities Treasury Division. JBL always focused on low and no cost deposits.32 million and supplementary capital by 106.16 million in 2004.00 | |Exchange Equalization Fund |0.97 million to Tk.450. The Capital Adequacy Ratio stood at 10. which will help the growth of the bank.00 | |Statutory Reserve |149. Treasury Operations: The Treasury Operation in the money market both in Local Currency and Foreign Currency as well as the activities as a Primary Dealer (PD). JBL has been earning a satisfactory fee-based income. 607.
97 | | | | | | | |109.74 |14.13 |78.96 |8023. After maintaining regulatory requirement and to avoid risk of single industry or large loan concentration and remains with the bank’s credit norms relating to proper risk management.39 |7. registered an overall increase by 107.26 |238. In Fiscal Year 2005 a devastating flood and declining trend in interest rate JBL. which stood at Tk. which stood at Tk.82 | |Scheme Deposit 25. In Fiscal Year 2004 a devastating flood and declining trend in interest rate JBL.52% over 2003.83 million.75 | |Foreign Currency Deposit 410.39 |10.003.31 | E. Loans & Advances: |As on |As on |31. which stood at Tk.450.06 | |31. registered an overall increase by 63.52 |10899.80% over 2004. tenor.29 |749.83 million. continued to explore its area of credit was successful to build up an aggregate quantum of credit.2005 |1543.84 | |Short Term Deposit 60.(Figure in Million) | % | |Type of Deposit |Over the Year | |Current A/C & Others |70. registered an overall increase by 63.48 |614.69 | |Total Deposit 38.454.79 |581. collateral security.16 |+145.42 |384.24 |+149.34 | |Bills Payable 39.88 | |Fixed Deposit 35.80% over 2004. continued to explore its area of credit was successful to build up an aggregate quantum of credit. 6.12.2004 |905.26 | |Savings Deposit 21. the credit portfolio of JBL was further diversified. The total credit on 2003 was 3239.03 |731.16 In Fiscal Year 2005 a devastating flood and declining trend in interest rate JBL.89 |Changes in |Changes |+637.35 |+4.52 million. Moreover owing to the social commitments JBL launched personal loan for . proper valuation etc.12.81 million.07 |37. yield exposure. 11011.81 |+134.68 |+30.56 |+2. continued to explore its area of credit was successful to build up an aggregate quantum of credit.876. 11011.17 |+30.772.
| . Free School Street | |Sonargaon Road.84 million. 1163. 2037.00 million. Investment: The Investment portfolio of the Bank as on 2005 stood at Tk.women and shop finance scheme to help the small business in the country. 630. Zero Coupon Bonds etc. 875. Sonargaon Road Branch | |1/G.6 | 4.12% over Tk.00 million of Central Depository System (CDBL). Dhaka. The Bank also invested in two shares amounting Tk.9889273-4 | |02. Prize Bonds.00 million. Mohadevpur Branch |Mohadevpur. JBL’s credit facilities include project finance activities. Amounting Tk. Import: I. Naogaon. growth rate 75. Treasury Bills of Tk. Mohakhali C/A. Treasury Bonds of Tk.5 4. The Investment portfolio comprises Govt. |PABX: (07426) 75137 | |10. 2. Naogaon Branch |247. 50. capacity additions in the manufacturing sector and structured finance to develop infrastructure of the country. Sadar Road |Naogaon. The majority portions of the investment contributed mainly towards fulfillment of Statutory Liquidity Reserve (SLR) of the Bank and were mostly in the form of Govt. JBL is one of the preference shareholders of Aftab Automobiles Ltd. Primary Shares. |PABX: (0741) 61840 Management Team of JBL Organizational Hierarchy of JBL | |01. | |PABX: 9887269. In order to increase the credit portfolio JBL has also taken initiatives to increase the capital in line with the directives of Bangladesh Bank. F. G. Dhaka.70 million of December 2004. Mohakhali Branch | |Ismail Mansion | |32.7 LIST & ADDRESS OF BRANCHES |9. Treasury Bills & Bonds. Export: 4. syndication of financing for large projects.00 million. | |Karwan Bazar.
Chittagong. | |PABX:7315025. Konabari Branch |Plot-A. Sylhet. Dhaka. Agrabadh Branch | |Jahan Building | |76-77. DIT Avenue (Ext) |Motijheel C/A. |PABX: (031) 616266 . |PABX: 9297182-3 |13. Foreign Exchnge Branch |2. Beani Bazar.|PABX:9670655 | |03. Chittagong. | |PABX: (08222)87352-3 | |05. Sylhet. Dhaka. | |PABX: 9565608 | |07. Patharghata |Kotwali. | |PABX: (08223)88022 | | | | | | |11. |PABX: (031) 625454 |12. Goala Bazar | |Osmani Nagar. Dilkusha C/A | |Dhaka-1000. Bhatiyari Branch |Newaz Market. Goala Bazar Branch | |New Plaza. Dilkusha Branch | |33. Moulvi Bazar Branch | |Mustaquim Mansion | |77/3. Balagonj. |PABX: 9554474 |15. 7315026 | |04. Bhatiyari Uttar |Sitakunda. Jubilee Road |Kotwali. Jubilee Road Branch |(Islami Banking Branch) |57. Gazipur. |PABX: (031) 752187 | |14. Agrabad C/A | |Chittagong | |PABX: (031)727727 | |06. 140-141. Chittagong. Khatungonj Branch |1575. BSCIC |Konabari. Moulvi Bazar. Beani Bazar Branch | |Fatehpur.
North South Road. | | | |23. | |Malitola. GausiaMarket Branch |393-B. | |21. Hilli Branch (Proposed) | | | | .8 JBL at a Glance |16. Narayangonj Branch |Chasara. Gulshan North C/A | |Gulshan-2. Chamelibagh | |Shantinagar. | | |24. Shantinagar Branch | |41/B. Munshigonj. Bogra Branch |Kabi Nazrul Islam Street |Borogola. Baligaon Branch |Tongibari. dhaka. Naya Bazar Branch | |(Islami Banking Branch) | |10/3. Narayangonj. | |PABX: 8613920 | |20. Dhaka. | |PABX.|08. | |PABX: 8355179 | |18. | |PABX: (0821) 725409 | |17. Bogra. | |PABX: 9553977 | 4. Zinda Bazar | |Kotwali. Sylhet Branch | |Sahir Plaza. Gulshan Branch | |Land view Comm Complex | |28. Dhaka. Chistia Market |Dhaka-1205. Dhanmondi Branch | |House # 17. | |22. 8852540 | |19. Road # 6 | |Dhanmondi R/A. Sylhet. Dhaka.
52 |14454.25 |15.16 |36.68 |65.14 |155.65 |916.58 | |20 |Net Income Per Share |46.76 | |6 |Total Deposit |3795.01 | |14 |Income from Investment |2.35 |204.00 | 1600.63 |2.82 | 51.(In Million Tk) |Sl.56 |483.22 |15551.00 |429.58 |15.04 |10.04 |7.35 |36.14 |14.98 |0.97 |674.06 |48.70 |405.45 |1514.68 | |9 |Profit after Tax & Provision |-|.00 | |2 |Paid up Capital |390.13 | |7 |Total Loans & Advances |333.52 |16863.58 | | |-|-|-|-|-|31.Interest Earning Assets |-|344.28 |3239.78 | 13491.40 |8951.50 |0.29 |0.2 | |12 |Interest Earning Assets |-|4946.30 | 148.00 |1600.77 |-|9.54 | |5 |Total Assets |4210.46 | |4 |Capital Surplus / (Deficit) |-|255.84 |1.56 | 932.63 |1.47 |27.00 |390.35 .00 |1600.00 |390.22 | 12559.30 | (In Percentage) |15 |Credit Deposit Ratio | | |16 |% of Classified Loans |.43 |126.06 |0.82 | |10 |Classified Loans |-|-|.95 |199.506 |115.93 |891.02 |8.00 |429.76 | 2903.541 |1772.22 |61.00 |1600.94 |1.37 | 80.59 |9766.46 | |17 |Cost of Deposit |8.05 | 10264. No |Particulars |2001 |2002 |2003 |2004 |2005 | |1 |Authorized Capital |1600.51 | 6722.89 |6614.18 | |19 |Earning Per Share (EPS) |46.75 | |13 |Non.29 |1312.05 | |11 |Provision against Classified Loans |-|-|.79 | |18 |Return on Assets (ROA) |1.16 |5290.05 |0.11 |4766.95 |5445.00 | |3 |Total Capital |390.19 |815.83 | |8 |Total Contingent Liabilities |145.80 |11011.
2 Introduction General Banking means general activities of a bank. remittances. credit administration and monitoring and foreign trade and exchange etc.68 |N/A |2.8 Loans and Advances 5. The general banking system of JBL is very dynamic and errorless. and general banking etc. 5.4 Account and Schemes 5.20 |Price Earning Ratio | |Return on Investment (ROI) | |N/A |2.91 Chapter 5: Findings of the study 5. receipt and payment of cash. It is the most important and preliminary work of a bank.6 Remittances 5. issuance of loans and advances. All the clients are satisfied with their services. The overall success of any banking concern largely depends upon the successful performing of the general banking.10 Foreign trade and exchange 5. Although JBL (Mohakhali Branch) is a new branch but their general banking activities are excellent.9 Credit administration and monitoring 5. retail banking.1 Prelude General banking is the most important function of any banking concern and it is known as the heart of any banking concern.3 Components of general banking 5. clearing.93 |N/A |6.1 Prelude 5.2 Introduction 5.7 Clearing 5.35 |N/A |4. The general banking procedure includes opening of various accounts and schemes.|21 |N/A |22 |6. It is also known as the day-to-day banking. The executives and officers are very friendly and supportive to their work. In their effort to improve their customer facility they . All other activities like investment and foreign exchange are rolled through the general banking.5 Receipt and Payment of cash 5. They expand their services to reach new customer year by year.
4 Account and Schemes Account opening is the first and preliminary work for a bank. But bank considers them as customers who have an account with them. Generally who are receiving bank service we may call them as a customer. To attract new customers the bank has to launch new components or re-furnished their existing products. Remittances D. 5.provide different facilities and offered numerous types of general banking facility. Foreign trade G. Opening of an account binds the Customer and Banker into a contractual relationship. Following are the formalities a customer must maintain in case of opening of an account: Minimum age of 18 years Application in the prescribed form Furnishing Photographs of the applicant and attested by the introducer (2 copies) Introduction by an account holder Recording of specimen signature in the specimen signature card Mention nominee in the prescribed form Furnishing Photograph of the nominee (1 copies) Description of Deposit Accounts: . Their components of general banking are as follows: A. It is the most important and preliminary work for a bank. Loans and Advances F. Account Opening is very important task for any kind of banking activities. So we can say that they are doing with target which leads them to a higher net profit. Credit administration and monitoring 5. Receipt and Payment of cash C. Major information is essential for identification of the account holders individually so that banker can discharge his obligations to every one correctly and to the extent due. Customer relationship establishes through opening an account.3 Components of General Banking The JBL (Mohakhali Branch) offers various types of general banking components. They are very essential tools for the bank to serve the customers. Clearing E. They are trying to improve themselves in every year in relation with the other branch of JBL their net profit has increased. Procedure of Opening of an Account: Banker’s his to maintain some common principles and procedures for open all most all deposit accounts. Account and Schemes B.
250 will be deducted from the account. In the event of contravention of the rule. Current Deposit Account: JBL is one of the newly established well-reputed third generation private commercial bank in Bangladesh. This will be in additional to forfeiture of interest provided for above.There are several types of deposit accounts. Banks may accept checks. Depositor may withdraw his/her deposit money up to 25% without notice but for withdrawals more than 25%. current . However. on behalf of the account holder for collection. Initial deposit for opening an account is Tk. dividend warrants etc. drafts. 7 (seven) days notice is required. deposit slips and statement of account to the holder of savings. the bank realize service charge in its discretion. Accounts may be opened in the name of illiterate persons after completion of necessary formalities but withdrawals from such accounts should be allowed only on personal appearance. The rules and regulations that must need to fulfill to open a savings account are as follows: Applicant has to be a Bangladeshi citizen. Each account will be given a separate account number which should be quoted while making withdrawal or deposit in the account or any correspondence. The officer process account-opening formalities. If a depositor presently withdraws more than twice a week or a sum exceeding 25% of the balance in his/her account without notice. Not more than one account should be allowed to open by one person in his/her name at any branch of the bank but this will not prevent a parents/guardians for opening more than one account for their children’s who are minors. Each account has different characteristics and every account has some specific purpose to serve. It operates very diverse current account operation. The officers and authorize persons are issuing check book. A suitable introduction is required for opening the account. like current account for private limited company. According to their uniqueness they are described as follows: Savings Account: It is the general account of the JBL (Gulshan Branch) individual or more than two persons can open a savings account on JBL. The officer justifies the information that is submitted by the account holder for opening of the account. service charge of Tk. Depositors may deposit money in his/her account as often as he/she likes.5000 and the account may be closed where the balance falls bellow Tk. the depositor’s will not be given any interest in this account for that month. Two-passport size furnished photographs attested by the introducer.5000. payment order. A depositor may withdraw money from his/her account twice in a week. If a depositor like to close his/her account.500. Manager has the discretion to authorize opening account below Tk. They serve various types of customers.
In case of partnership firm attested photocopy of Partnership Deed must be submitted to the banker. All deposit to current account made by local constituent should be accompanied by payin-slip and the depositor should satisfy themselves that the depositor are verified by the received and date stamp of the bank and the initials of the bank’s officials. Attested photocopy of employment contract/ appointment letter/ work permit. Account holders can deposit the money at any numbers of items. A charge of Tk. Rules and regulation for current deposit accounts are as follows: Current deposit accounts are opened with sums of TK. To be certified by an introducer who has a current account with the bank. Foreign Currency Account: The JBL (Mohakhali Branch) also operate Foreign Currency Account for Bangladeshi Wage Earners or for Foreign Nationals/Company/Firms etc. It is understood that the at credit will not any time be allowed to below 1000.100 per year is made on all small operative accounts and on those 3 accounts in which the number of the transaction is out of proportion to the balance of deposit. The bank collects local check. current account for partnership business. etc. . on clearing free of cost and all other collection items at charges to be ascertained on application. etc. The account holders have to provide the company seal when it is necessary. A minimum charge of Tk. colleges certified copies of bye-laws and regulations must be submitted to the banker. All these accounts are following the under noted rules and regulations of JBL. The rules and procedures for opening of the Foreign Currency Account are as follows: Foreign Currency Account (For Bangladeshi Wage Earners): Two (2) copies of passport size furnished photograph attested by the introducer and one (1) copy photograph of nominee attested by the applicant. club up-to-date list of the Members of the Trustee Board. More than 2 (Two) applicant can open the account. societies. to send their valued earned foreign currency into the country. pay order. In case of clubs. 5000 in the names of the parties known to the bank or properly introduced.account for public limited company.100 will be made on all accounts closed within 6 (six) months of their opening. demand draft. If account intended to be opened from abroad Bangladesh Embassy or High Commission shall attest all original papers except the photograph of the nominee which to be attested by the account holder him/herself. There is no restriction of how many times and the amount of money is withdrawn. memorandum of association. Attested photocopy of the first 7 (seven) pages of the valid passport. For a private or public limited company various types of legal documents might be articles of association. In case of trust. trade license etc. schools.
Copies of registration in Bangladesh with Board of Investment (BOI)/ Bangladesh bank foreign joint venture firm. copy of the partnership deed which should be dully attested by the authorized officer.00% | |year | | Schemes: Schemes are the most important sources of enhancing banks deposit. joint venture agreement for Joint Venture Company. In case of partnership firm. If the STD account holder wants to withdraw the money from the account they have to inform the bank before. Short Term Deposit Account (STD): JBL also offers Short Term Deposit to its valued customers. Short Term Deposit is a deposit account where the payment of interest is paid on month basis. These types of liabilities are payable on special notice or after a specified period other than the fixed deposits. Copy of set-vice contract / appointment letter / work permit.00% |Savings Deposit : Non-Chequing & No withdrawal for 6 (six)|7.50% |Savings Deposit : Rural / Urban |7. if any for the individual.Foreign Currency Account (For Foreign Nationals/Company/Firms): The required papers and documents are as follows: Two (2) copies of passport size furnished photographs of the account holder which should be attested by the introducer. |Particulars |Approved Revised Rate |Short Term Deposit (STD) |6. Copies of memorandum of association. Jamuna Bank limited as third generation modern and technology based modern commercial bank offers various types of customer’s friendly deposit schemes to its | | | . These deposits give the customers to deposit the idle money in profit earning schemes and also provide the security. Some of these types of deposits are of the nature of time deposits. articles of association. which is deposited by various types of depositor. These schemes are different in nature and types and also in interest rates.5% per annum. Mainly bank is the lender of money. otherwise the account holder may not get the interest in full amount. bye-laws. This items include the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. There are some rules and regulations that must be maintained by the STD account holder.50% | |months | | |Savings Deposit : Non-Chequing & No withdrawal for 1 (one)|8. Copies of relevant pages of the passport duly attested by dealing officer for individual and operators of the account holders. The rate of interest on STD account is 4.
In JBL customers can open FDR in individually or jointly for any amount for a fixed period.750 | | | | | | | | | In this scheme depositor may open one or more account of different installment in the same branch. The schemes are outlined below: Fixed Deposit Receipt (FDR): JBL offers various types of FDR to its client’s. The monthly installment of Tk. The depositor may encash the MSS before the expiry of the maturity of the MSS period In this case the depositor will not enjoy the full amount of interest. There are various types of MSS that is offered by the JBL. Loan may be extended to the depositor up to 80% of the deposit amount.valued customers. Customers can get the interest after the maturity period of the FDR. There is a special typed form for opening a Monthly Savings Scheme. One passport size photograph of the account holder and another copy of the nominee are needed to open this account.375 |7. Double Balance Deposit Scheme (DBDS) . The depositor will be paid a specific amount on the expiry period as per the following table: |Period | |5 (Five) Years |5 (Five) Years |5 (Five) Years |5 (Five) Years |Installment |500 |1000 |5000 |10000 |Payable at the End |36.67.475 |3. 3 (Three) months. For opening of FDR no introducing are required. is 500 to 10000 may be deposited every month during the entire period of the scheme. Their maturity may be 1 (One) months.34. etc. 6 (Six) months.50% Monthly Savings Scheme (MSS): JBL has proudly offered Monthly Savings Scheme to its valued customers. The rates of interest are presented in the following table: |Particulars |Approved Revised Rate |FDR for 1(one) month and above |10. 12 (Twelve) months. The variation depends on the amount and the time of maturity of the MSS. 2 (Two) months.50% |FDR for 12(twelve) month and above |12. These schemes are highly profit earning to the depositors and also unique in security.738 |73.25% |FDR for 6(six) month and above |12. Only one copy of passport size photograph of the account holder and another copy of the nominee is needed.50% |FDR for 3 (three) month and above |12. H/She can also encash the FDR before the maturity of the period. In this case he will not enjoy the regular interest rate on the FDR. The duration of this scheme is 5 years.
which provides the opportunity to the valued depositor to enjoying a specified amount against the deposit a fixed amount for a certain period. The depositor will fill up the appropriate form properly.000 for 1 (one) year. The cash officer will check up the voucher and entered the amount in the cash receipt register and put the scroll number. Then the officer will sign the voucher and send to the computer department. he/she will get Tk. The concerned officer working at the general banking counter will initial the form relating to the new account. Then the voucher will be branded “Cash Received” seal.1. cash receipt and payment is the most vital and physical function. The officer computer department will entry the transaction into the computer and put the Posted seal and a tracer number on the voucher. Different types of forms are used for cash deposits for different types of accounts. This is the most benefiting scheme for retired official or middle class family. Generally customer comes to bank to withdraw the money from their account and deposit his savings in their accounts. Pay order application form Call deposit application form Demand loan pays in slip. Monthly Profit Paying Scheme (MPPS) MPPS is a scheme. Under this scheme the depositor may deposit any amount multiplied by 10. 00. the cash officer will count cash correctly. B. After tat assistant officer will sign the voucher. If any person make deposit Tk. 00. Any person can deposit any amount more than Tk.000 at any time for the period more than one year.000 for 7 (Seven) years. Receiving the cash and voucher at the cash counter. Then the assistant cash officer willing the denomination of the notes and coins in the backside of the voucher. 5.Jamuna Bank Limited also offers its valued depositors to enjoying the DDBS. It is one of the most popular schemes offered by the Bank. D. Cash Deposit Money deposited in cash by the constituents at the cash counter of the bank excluding that of government transaction is known as Bank Receipt (Cash). At the end of the transaction the cash officer will total the cash receipt book and the total figure should be tally with scroll maintained by the officer whose scroll will also be .T. A. Particulars of some forms are furnished below: Current or Savings account pay in slip Application for fixed deposit receipt Credit voucher Draft or mail transfer application form T.900 per month for every year. E. C.5 Receipt and Payment of cash Among the services provided by the bank.1. The deposited amount will be double with its principals and interest after the expiration of the aforesaid period.
It will be entered in the cash paid sheet in the above manner and cash book under authentication of the manager and the cash officer.totaled. debit vouchers etc. It must also be noted with late mark under initial of the manager with date. • All checks. Then it will be send to the cash counter. • The head of the cash department is responsible for all debit vouchers being branded with the cash Paid date stamp immediately they are paid and the manager must supervise him/her in this matter as any laxity is extremely dangerous. which instruments like Cheque. . must be branded with “Cash Paid” stamp with the current date. are disposed of. In case of Cheque the following particulars will be scrutinized: • Date (Whether post dated or anti dated) • Amount in word and figure • Crossed or Open • Bearer or Order • Style of signature as available in the ledger • Prohibitory order or stop payment of checks. • Cash officer will record the denomination of notes and coins on the backside of the instruments. The computer officer and Cheque passing authorized officer will verify the instrument and posted the instruments. • The officer will enter the check in the cash payments register where the denomination of notes and coins will also be recorded. drafts. etc. The physical cash received at the counter must be equal to the total figure of the scroll. drafts. Late Payments In case of any late payments instruments must be debited in the ledge and passed in the usual manner. The Cash officer will follow the following procedures at the time of payments of checks/other instruments over the cash counter: • The client will submit the instruments in the computer department first. All the instruments received at the general banking counter will be preliminary checked by the dealing officer who will enter the instruments in the respective ledger. Extreme precautions must be taken at all levels through. • The cash officer will give the amount to the clients at the cash counter and told the clients to count it immediately and if needed any quarry. • After payment the cash department for the purpose of clean cash book will send the vouchers. Cash Payments Banks payment includes all kinds of payments excluding those of treasury section. • After getting the instrument the cash officer will verify the instruments and if necessary the cash officer can told the clients to sign in the backside of the instruments.
Remittances are sent to one place from another place through D. The advantage of this facility is the quick transfer of money with minimum cost and also the risk of physical transportation of cost is criminated.6 Remittances: Due to the rapid expansion and complication of business world and increasing competition business activities are now in broader scope. Demand Draft Demand draft is a written order of one branch upon another branch of the same bank. • The cashier receives the cash and delivers the voucher to remittance. department against initial in his book. Endorsement. to pay a certain some of money to or to the order of a specified person. • Commission charge are calculated and inserted in the case provided in the form. The application form should be checked carefully. But this is to notify that.O. In this case Bank is the only concern which helps the business world to complete these complicated transactions. • The voucher had given to the customer to deposit the cash with the cashier. the bank is discharged by payment in due course. • Branch wise serial number is given on the draft besides the oriented number putting on oblique between. from one place to another. Because. and T. P. purports to be endorsed by or on behalf of the payee. From the above provisions as to Crossing. 5. Such transfer of funds can be effected either through Demand Draft of Telegraphic Transfer or Mail Transfer.Finally all cash receipts and payments will be taken into account to calculate the cash balance of the branch we may take an example to clarify this. Commercial banks in Bangladesh offer the facility of transferring funds. In practice drafts are not to be drawn between branches within the same city. For this financial transaction also goes in boundless arena. it is for outside Bangladesh the same is called foreign remittance. to their customers as well as to the general public.D. While. . currently the whole banking are monitoring centrally. Drafts are not issued payable to bearer. which is treated as an application as well as voucher.T etc. Collection and Payment in due course are the same as for checks: Issue of Demand Draft • The customer is asked to complete filling in a form. The amount of the draft protects graphed. Drafts drawn by one branch of bank on another payable to order where any draft that is an order to pay money drawn by one on a bank upon another office to the same bank for a sum of money payable to order on demand. The aforesaid methods of remitting money from one place to another within the country are known as Remittance. • Draft is prepared and entered in drafts issued register. at the end of the day of the bank the amount of the cash book and the amount of the computer should be equal.
50. the signature on the Cheque and on the application form must tally. • If the draft is in favor of a company. • The drawee branch is informed of the loss of draft and requested to exercise caution by letter or telegram as desired by applicant. For cancellation is draft the following points should be kept in mind: • One receipt of application along with the demand draft for its cancellation the signature of the application is verified from the original application form and the geniuses of the demand draft is examined. i. • If the date of issue of the draft is much earlier. • After the Cheque is passed similar. semi-government official. • Draft block and the voucher along with the register are sent to officer in charge for checking and signatures. the signature of the applicant is verified from the original application. • The draft is crossed if customers desires and delivered to him against his acknowledgement on the voucher. • Drawee branch is advised of issue of the duplicate draft. and the draft is marked “cancelled”. Cancellation of Demand Draft: The purchase may request to cancel the draft purchased by him and ask for refund of money. the drawer to the Cheque and the purchaser of the draft should be the same person. a duplicate draft is issued to the purchaser after obtaining an indemnity Bond. • A note to this effect is made on the original form and the draft issue registers. • Telegraphic intimation under test is sent to the drawee much for drafts of Tk.e. Issue of Duplicate Demand Draft • On receipt an application form the purchaser of the draft its loss and issue of duplicate one. consent of the payee in writing should be obtained.and over in or as per the existing of the bank. • Before the draft is cancelled it is ascertained that no duplicate draft has been issued. • A memorandum is issued to the stoner if the desires.000/.• The draft number is written on the voucher. The note in respect of cancellation should be made in the draft issued register and on the application. He signs the draft and voucher and initials the counterfoil of the draft and the register. • On receipt of confirmation from the drawee branch that the draft is still outstanding in their books and that caution being exercised by them. consent of the payee in writing is essential. • If a Cheque tenders the amount. . • The signatures of officers on the draft should be crossed but in no case torn. • The Cheque is sent for passing and cancellation. The telegram charges if incurred is recovered form he. Then the draft and the voucher are sent to the Manager / second officer for second signature. procedure as explained above is adopted for issuing draft.
The purchaser must give a letter in writing requesting for the revalidation of the draft.• The cancelled draft should be attached to debit voucher along the request letter of the purchaser. consent of the payee in writing is essential. • The drawee branch may be advised about the cancellation of the draft. caution is noted in red in the remarks column of the register if the draft is not yet paid. • The drawee branch may be advised about the cancellation of the draft. The note in respect of cancellation should be made in the draft issued register and on the application. The purchaser of the draft may approach the issuing branch to revalidate the draft to make it payable again. Revalidation of Demand Draft A draft like Cheque becomes stale after lapse of six months from the date of issue. The drawee branch should be intimated about the revalidated of the draft. and the draft be marked “cancelled”. Payment of Demand Draft Record of loss: On receipt of information from the drawee branch about the loss of any draft. The drawee branch is informed accordingly. • If the draft is in favor of a company.should be affixed on the draft Linder the signatures if two authorized official. Record of Revalidation: On receipt of information from the issuing branch in respect of cancellation of draft. Payment of Open Draft . • The cancelled draft should be attached to debit voucher along the request letter of the purchaser. An officer should duly verify his signature on the letter. • The signature of officers on the draft should be crossed but in no case torn. Before the draft is revalidated it is ascertained that no duplicate draft has been issued. note to this effect is made in the register. A Rubber stamp being “Revalidated on --------------. Record of Collection: On receipt of information from the issuing branch in respect of cancellation of draft. a note about revalidation of the letter particular draft be made in the register. note to this effect is made in the register. A note to this effect in the remarks column against the relative entry in the draft payable register should be made at the drawee branch. All particulars of the draft should be compared from the draft issued register. Record of Duplicate Draft: On receipt of information from the issuing branch in respect of cancellation of draft. The draft should be reminded and there must be no alteration in the draft. note to this effect is made in the register. semi-government official.
Cr.Cr. Payment date is noted in the register.Dr.Dr. After receiving the instrument. The paying banker in such cash should examine the discharge of the collecting banker and payment be made on being fully satisfied.Cr. Drawn on branch -------------------------. Cancellation the draft sent to cash department for payment. Such DD s should be credited to payee’s account in the drawee branch or should presented either in clearing/transfer delivery by a bank or cash payment with a name of request where there is no clearing House. Income A/C Commission ---------------.Dr. cancelled or duplicate issued. .When a demand draft is presented for cash payment it should be examined that the draft is not crossed and it is drawn on your branch and the same was not issued more than six months curlier. After giving entries an IBCA is prepared. In case of any irregularity in the draft an advice letter is sent obtain the confirmation of the issuing branch. After receiving an IBCA Issuing Branch A/C ------------. If the payee is the customer of the branch his signature can be verified from the S. Lost. The IBCA is dispatched to drawn on branch. Draft together with the register is sent to the officer in charge for cancellation and after.Cr. Payment of Crossed Draft Under N. a person acceptable asks identification from a customer of our bank or to the draft and the signature is verified by an offer. test should be verified.Cr. amount in words and figures and signatures on the draft is checked. card.Dr. Act crossed draft cannot be paid in cash. When payment is made Bill payable (DD) --------------. Customer A/C ------------------. tile IBCA lodgment is done by the branch. who collects the same for credit to his customer’s account. The date.S. In other cases. except to a banker. It also examined that intimation is received about the DD. Accounting Treatment (Sale of Demand Draft) Cash / Party A/C -------------------------. Bill payable (DD) A/C --------. Proper identification of the payee is required. An IBCA implies the following entries: HO A/C issuing branch ------------------. If the draft is tested. HO A/C Drawn on branch --------------.I.
PO no: amount is mentioned. address. but the instrument has been presented. The telex department confirms transmission of the message. it is authenticated by tested. After receiving the telex. Charges and Commission: Tk.Cr.Dr. To adjust the payment: Issuing Bank A/C ----------------.Payment is made from the suspense account if the IBCA is not reached. on receipt of which tile paying officer pay the amount to the payee in cash through a telegraphic payment order or credit his account. The procedures for selling a PO are as follows: Deposit money by the customer along with application form. date. as the case may be. Signature of customer is taken on the counterpart and register customer’s signature part. Both parties must have account in Jamuna Bank Limited.Dr. Necessary entry is given to TT outgoing register. The TT In-Concern branch’s register verifies TT serial number. Tested telex message is prepared. After scrutinized and approved the instrument by authority. Suspense A/C -------------.Dr. it is delivered to customer.50/= is taken as posted charge and the commission is 15% of the total amount. Telegraphic Transfer TT is affected by tile bank through tested message attested by secret check signal. Payment Order (PO): The PO is used for making a remittance to the local creditors. Voucher is released in this respect. Prepared the instrument. HO A/C -----------------------------------. Give necessary entry in the Bills Payable register where Payee’ name.Cr.Cr. Recording Procedure of Outgoing TT Deposit of money by the customer along with application form. as money is transferred. Recording Procedure for Incoming TT. . Accounting Treatment: Cash / Customer A/C -------------------. notifying party name is mentioned. Customer A/C ------------. Suspense A/C --------------------. when TT serial number. In receipt of money a cost memo is given to the customer.
000/|10. notifying loss of SDR. On PO ------------------. Commission Charged In Amounts: |Amount in Taka | |Up to 10.Cr.Cr. Income A/C Comm.A.25 |25/= + 3.Cr. Issuing of a PO: Customer can purchase PO in different modes: By Cash: Cash A/C ------------------------.00. Issue of Duplicate SDR: An application from the purchaser.Cr.Dr. on the application is verified from the signature on the original application form. Settlement of a PO: PO is to submit by collecting bank through clearinghouse. Bills payable (PO) A/C -------.Dr.75 |40/= + 6.00. C.00.50 | | | | E. Bills Payable (PO) A/C -----------------------.001/= To Above |Rate of Commission in Taka |15/= + 2. stating date and circumstances of he loss of the instruments is required. Bills payable (PO) A/C ---.Dr. D.00 |50/= + 7.000/|5. B. Entry: Bills Payable (PO) A/C ---------------------.001/= to 5.Dr. Customer A/C --------------------------------. By Transfer: HO A/C / other department’s client ---------.001/= to 1. on PO – Cr. Entry: Bills Payable A/C -------------. Income A/C Comm.Cr. Balance with B.Cr. Income A/C Comm. By Account: Customer A/C --------------.Dr.Cr. the issuing bank gives payment. .000 |1.00. On PO --.B -------------. Cancellation of A PO: Customer must submit a letter of instruction in this and also return the given instrument. The signature of the purchaser.
directing a certain person to pay on demand or at a fixed determinable future time a certain sum of money only to or to the order of a certain person or to the bearer of the instrument. as “Caution Noted Receipt Lost” should be marked in the relative register. Such as doing through computer. Payments of Open Check An open cheque may either be bearer or order. A cheque is a bill of exchange drawn on a specific banker and not expressed to be payable otherwise than on demand. After completion of the above formalities a duplicate may be issued having crossreferences on the duplicate SDR and counterfoil of the original SDR. A Bill of exchange is an instrument in writing containing an unconditional order. Essential elements/requisites of a check It must be in writing It must contain an order to pay on demand or at fixed or determinable future. But cheque is the most important instrument in the bill exchange. There are two types of cheque in the bank. Payment and Collections of Checks: In the banking sector bill of exchange in one of the important instruments. Payments of Crossed Check Where a check is crossed generally the banker on whom it is drawn shall not pay it otherwise than to a banker. in Red ink. . So the clean cash of the cash department and the supplementary of the computer must be equal. The letter received from the purchaser and the payee should be field with the original application-cum voucher is required for issue of Duplicate SDR. Where cheque is originally expressed to be payable to bearer the drawee is discharged by payment in due course to the bearer thereof. Where the cheque payable to order purports to be indorsed by or on behalf of the payee the drawee is discharged by payment in due course. A confirmatory letter from the beneficiary stating that the beneficiary’s has no claim on it. signed by the maker. The order be an unconditional one The drawee must it The drawee must be certain The sum payable must be certain The instrument must contain an order to pay a certain sum The payee must be certain. not withstanding any endorsement whether in full or in blank appearing thereon and not withstanding that such endorsement purports to restricts or exclude future negotiation.Caution noted. A note should be made in the register or on the relative counterfoil.
Thus the statutory protection given to the collecting banker can be claimed only for crossed checks. A banker collecting a cheque for a customer has no better title than that of his customer a cheque belonging to another person can he held liable for conversion.7 Clearing Clearing is one of the most magical parts of modern banking. the banking activities is boundless. Where a check is crossed specially to more than one banker except when crossed to an agent for the purpose of collection the banker on whom it is drawn shall refuse payment thereof. Nature of clearing house: Clearing House Process: Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house. Where the banker on whom a crossed cheque is drawn has paid the sum in due course the banker paying the cheque and the drawer thereof respectively be entitled to the same rights and be placed in the same position in all respects as they would respectively be entitled to and placed in if amount of the check had been paid to and received by the owner thereof. After that the clearing officer posts all the checks in computer . A banker who has in faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not in case the title of the cheque proves defective incur any liability to the true owner of the Cheque by reason only of having received such payments.Where a check is crossed specially the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection. 5. Most of the banks are linked with other banks due to inter bank transactions. Clearing is the only process by whish these transactions are settled. Collection Check: There is no legal obligation on a banker to collects checks drawn on other banks for a customer. Now a days. Clearing House enables the member banks to offset claims against one another for checks and orders paid into banks other than those upon which they were drawn. Clearing officer examines all the checks and deposit slip very carefully and then he received the cheque. But as a practice the collection of Checks and bills on behalf of the customer has become one of important function of a bank. Clearing House is a centralized and computerized system for settling indebtedness between its member banks. Actually most of major client deposit their account in different kinds of bank checks.
00.000 (Twenty Five Lac only) Credit: Balance with Bangladesh Bank Tk-25.software which is recognized through Bangladesh Bank (namely NIKASH) computer department. that’s why JBL not to be able to credited party account.000 (Twenty Five Lac only) Credit: Clearing Adjustment Account Tk-25. There the clearing officer check all the bank’s cheque and the he put all the checks in bank wise. the cheque may be return from another bank. Process of Favor: |Outward |Chq Chq |Amount |Amount | |Bank’s Name |Inward | . 00. If the checks staple in wrong direction. After all of these procedure the clearing in charge wait for the Bangladesh Bank sheet as the final document. 00. Then the clearing house officer copying the entire document in two floppy disks as per Bangladesh Bank requirement. Then he create the vouchers.000 (Twenty Five Lac only) In this condition it means when disfavor realized against Jamuna Bank Limited then Jamuna Bank limited have to balance the difference money with Bangladesh Bank. then officer print all the document and staple all the checks by branch wise. this is very vital job because every cheque must have to be staple very carefully. it may be 250 to 400. 00. because some time’s the checks are huge in quantity. Then clearing officer seal all the checks in advance date after that the officer endorsement all the checks and sign all the checks. like as this another bank’s delivered there checks in JBL desk. All of the procedure the clearing officer goes to the Bangladesh bank clearing house before 10 am in the morning. It is a very difficult job to staple all the checks.000 (Twenty Five Lac only) If the total amount is going to Disfavor against the vouchers will be as follows: [ Debit: Clearing Adjustment Account Tk-25. If the amount is Going favor of JBL the voucher will be as follows: Debit: Balance With Bangladesh Bank Tk-25. Then the officers of JBL have to calculate all the checks by using calculator machine Staple pin remover. this is called schedule of clearing house. and then he divided all the checks as JBL branch wise. it means cheque amount and the print sheet amount and cheque branch must have to be same. All the checks are posted in the computer by branch wise.
| | | |5,000 | 5,000 | |5,000 | | | |5,000 | 5,000 | 5,000 | | | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | | | 5,000 | |5,000 | 5,000 | | | |
|5 |5 | |5 | |5 | |5 |5 | |5 | |5 | |5 |5 | |5 | |5 | |5 | |5 | |5 | |5 | |5 | |5 |5 | |5 | |5 | |5 |5
|5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000
|Agrani Bank |Al Baraka Bank Bangladesh Ltd |Al arafah Islami Bank Limited |Arab Bangladesh Bank Limited |Bangladesh Bank |Bangladesh Commerce Bank |Bangladesh Krishi Bank |Bangladesh Shilpo Bank |Bank Asia Limited |Brac Bank Limited |Citi N.A Bank Limited |Cradit Agricole Indosuez |Dhaka Bank Limited |Dutch Bangla Bank Limited |Eastern Bank Limited |First Security Bank Limited |Habib Bank Limited |HSBC Limited |IFIC Bank Limited |Islami Bank Bangladesh Limited |Jamuna Bank Limited |Janata Bank |Marcentile Bank |
|5 | | | | | | | | | | | | | | | | | | | | |5 | |5 |5 | |5 |5 |5 | | |5 |5 |5 |5 |5
|5,000 |5 |5 |5 |5,000 |5 |5 |5 | | |5,000 | | | | |5 | | | |5,000 | |5 | | |
| 5,000 | 5,000 | 5,000 | | | 5,000 | 5,000 | 5,000 | | | 5,000 | 5,000 | 5,000 | 5,000 | | | | | 5,000 | | | 5,000 | | | | | | | 5,000 | 5,000 | 5,000
|5 | |5 | |5 | |5 |5 | |5 | |5 | |5 |5 | |5 | |5 | |5 | |5 |5 |5 | |5 |5 | |5 |5 |5 |5 | |5 | |5 |
|5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000
|Mutual Trust Bank Limited |National Bank Limited |National Bank of Pkistan |NCCBL |One Bank Limited |Prime Bank Limited |Pubali Bank Limited |RAKUB |Rupali Bank Limited |Samabay Bank Limited |Sahajalal Bank limited |Shamil Bank of Bahrain |SIBL |Sonali Bank |South East Bank Limited |Shilpo Rin Sangstha |Standard Bank Limited |Standard Chartered |Standard Chartered |State Bank of India |The City Bank Limited |The Premier Bank Limited |The Trust Bank Limited | | | | | | | | | | | | | | | | | | | | |
|5 | |
|5 |5 |5 |5 |5 |5 |5 |5 |5 |5 |5,000 |5 |
|5,000 | | | |5,000 | |
|5,000 |5 | |5 |5 |5 |5 |5 | |5,000 | |5,000 |5,000 |5,000 | | |
| |5 | | |5 5,000 | | |5 | |TOTAL 2,30,000 |
|5,000 |5,000 |5,000 |250
|UCBL |Uttara Bank Limited |Worri Bank |2,50,000 |
| | | |
|5,000 |5 | |5,000 | 220 |
In this condition Jamuna Bank Out word checks was 250 and total amount was TK25,00,000 and Jamuna Bank In ward checks was 230 and total amount was TK- 2,30,000. So this could be the favor for Jamuna Bank. Process of Disfavor: |Outword |Chq |Amount |Bank’s Name Chq |Amount | | |5 |5,000 |Agrani Bank | | |5 |5,000 |Al Baraka Bank Bangladesh Ltd |5,000 | | |5 |5,000 |Al arafah Islami Bank Limited 5,000 | | |5 |5,000 |Arab Bangladesh Bank Limited |5,000 | | |5 |5,000 |Bangladesh Bank 5,000 | | |5 |5,000 |Bangladesh Commerce Bank |5,000 | | | |5,000 |Bangladesh Krishi Bank 5,000 | | |5 |5,000 |Bangladesh Shilpo Bank 5,000 | | |5 |5,000 |Bank Asia Limited 5,000 | | |5 |5,000 |Brac Bank Limited 5,000 | | |5 |5,000 |Citi Bank N.A Limited 5,000 | | |5 |5,000 |Cradit Agricole Indosuez 5,000 | | |5 |5,000 |Dhaka Bank Limited 5,000 | | |5 |5,000 |Dutch Bangla Bank Limited 5,000 | |In word | | | | | | | | | | | | | | |5 |5 |5 |5 |5 |5 | | |5 |5 | | | | |5 |5 |5 | |5 | | |5 |
|5,000 |5 |
| 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | |5,000 | 5,000 | | | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | | | 5,000 | 5,000 | 5,000 | 5,000 | | | |
|5 | |5 | |5 | |5 | |5 | |5 | | | |5 |5 | |5 | |5 | | | |5 | |5 | |5 | |5 | |5 |5 | |5 | | | |5 | |5 |5
|5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000 |5,000
|Eastern Bank Limited |First Security Bank Limited |Habib Bank Limited |HSBC Limited |IFIC Bank Limited |Islami Bank Bangladesh Limited |Jamuna Bank Limited |Janata Bank |Marcentile Bank |Mutual Trust Bank Limited |National Bank Limited |National Bank of Pakistan |NCC Bank Limited |One Bank Limited |Prime Bank Limited |Pubali Bank Limited |RAKUB |Rupali Bank Limited |Samabay Bank Limited |Sahajalal Bank limited |Shamil Bank of Bahrain |SIBL |Sonali Bank | | | | | | | | |
| | |
|5 |5 |5 |5 |5 | | | |5 |5 |5 |5 | | | |5 |5 |5 |5 | |5
| | |
| |5,000 | | | | |
| | |5 | |
| | |5,000
|5 |5 |5 | |5 |5 |5 |5,000 |
| |5 |5. .000 | | |5 |5.000 |UCBL | | |5 |5.000 | | |5 |5.000.000 |Standard Bank Limited 5.000 | | | |5.000 | | |5 |5.2.000 | | | | | | | | | | | | | | |5 | |5 |5 |5 |5 |5 |5 |5 |5 | | |5 |5 |5 |5.000 |Uttara Bank Limited 5.000.000 |The Premier Bank Limited 5.000 | |***** |5 |5.000 |The City Bank Limited 5.000 |Shilpo Rin Sangstha 5. And Jamuna Bank In ward checks was 225 and total amount was TK.000 | | |5 |5.000 |Standard Chartered 5. 50. The vouchers are as given below: Debit: JBL General Ledger Mohakhali Branch Tk***** Debit: JBL General Ledger Dhanmondi Branch Tk ***** ***** ***** ***** ***** ***** Debit: JBL General Ledger Nayabazar Branch Tk***** Debit: JBL General Ledger Shantinagar Branch TK.000 |The Trust Bank Limited 5.00.000 |Standard Chartered Grindlays 5.000 250 | In this situation Jamuna Bank’s out ward checks was 250 and amount was Tk-2. After all of these processing the officer creates some vouchers of their branches and finally he creates the IBDA (Inter Branch Debit Advice).000 | | |5 |5.000 | | | | | | | | |5.000 | | |5 |5.25.000 | | |5 |5.000 |State Bank of India 5.25.000 |South East Bank Limited 5.000 |Worri Bank | |TOTAL |225 |2.000 | | |5 |5. So this could be the disfavor for Jamuna Bank.000 | 25.
JBL has been extending credit facilities to the potential. Cheque crossed “Account Payee only”. Illegible. --------------------. / required. Loans and Advances Commercial banks collects money from one group of people as deposits and distribute them within the other group of customers as loans and advances and it is the most important function of commercial bank. Cheque is post dated/ out of date / mutilated. Alteration in Date/ figures/words require drawer’s full signature. Payment stopped by drawer. Addition to bank discharge should be authenticated. Full neither covers nor received. This type of exchange is called return cheque. After first clearinghouse some of the in ward checks may be out ward and some of the out word checks may be in ward. to finance their longer term needs and for other business purposes.Payees endorsement irregular. Reason for the Return Checks: Memorandum Jamuna Bank Limited Branch Date: ________ Cheque(s) No……………… for Taka ………………… Is/are returned un-paid for reason(s) no …………………………………… Not arrange for Effects not cleared may be present again. which can gear up the economy actively. Return Clearing House: Return clearinghouse is called the counter part of first clearinghouse. As a private commercial Bank JBL has some inherent commitment to the society. Exceeds arrangement. Crossed cheque must be presented through a Bank. productive and sector as per Bangladesh Bank .After all of these processing the clearing officer go back to his branch and registered another branches checks with the IBDA in the register book. --------------------. Clearing stamps required. Commercial and Industrial loans to business concerns to finance their day-to-day activities. In time to time the other branches Clark come to the principal branch and collect their checks. It provides loans and advances to the customer. By this way the bank earns profit. Amount in word and figure differs. Drawer signature differs/ required.Payee’s endorsement irregular requires bank’s confirmation. The maturity of these range from 1 (One) year to 10 (Ten) years or longer.
Check the accounts to find out the money are needed or not. Rate of Interest. A big portion of opening income is generated from sound lending. They are as follows: Cash credit (Hypothecation) Cash credit (Pledge) 1. Stock (primary or preliminary security) Stock as a form of collateral Land as a form of collateral There are two types of cash credit. Cash credit (Hypothecation): The short-term advance is given on the basis of hypothecation of good basically these loans are given to improve the financial condition of the business. Good loans are profit-earning asset to the Bank. Jamuna Bank Limited has to carefully invest in loan/advances to get maximum performance from the investment. However this limit can also be renewable. The letter of hypothecation is created against the goods in favor of the bank and the borrower binds himself to give possession is handed over the charge is converted into pledge. the cash credit facility is given on security like the collateral. So. This type of facility is generally given to the reputed borrowers of undoubted integrity. As per Banking Company Act 1991 every banking company has to maintain a specified minimum (presently 16%) of the total of its demand and time liabilities in form of cash and approved securities with Bangladesh Bank. The rate of interest is usually from 13% to . At present the performance of loans/advance of Jamuna Bank Limited (Foreign Exchange Branch) are as follows: Classification of Loans and Advances: The loans and advances are divided into the following segments: Loans and Advance |Cash Credit | |(Hypo) | |Cash Credit |(Pledge) |Secured |Overdraft | |Loans |Bank |Guarantee Cash Credit: Cash credit and continuing credit are the form of credit schemes that are short-terms renewable loans with a special credit time. Bank cannot lend its fund fully. a.instructions. Validity. As credit activities. The interest rate is calculated on a daily limit basis. Mode of Repayment of Cash Credit (Hypo): As the cash credit (Hypo) is a short-loan the validation period also is within a year.
varying from credit to credit. From daily sales proceeds once in every 45 days and finally within the validity. By singing the letter of pledge. This kind of loan is not practiced frequently as it has much risk than others. Secured Overdraft (SOD): A loan facility on a customer with a current account at the bank permitting him/her to overdrawn up to a certain agreed limit for an agreed period. Letter of Agreement. C. The ownership of goods remains with the borrower. Letter of Hypothecation. The terms of loans are normally that it is repayable on demand or at the expiration date of the agreement. Cash credit (Pledge) : Under this agreement. Because here the goods that are taken as security is kept under banks control. Secured Overdraft SOD (G) . Letter of Guarantee. Personal guarantee: Personal guarantee of owners of the landed property offered as collateral security. No collateral security is normally asked for grant of such credits. So bank has a liability here. Charge documents: Deposit Promissory Note. Security against Cash Credit (Hypo) Allocation: Primary: Hypothecation of stocks at borrower shop/store both existing and future duty insured under banks Collateral: Registered mortgaged land. In the event of the failure but the borrower to honor his/her commitment. There are two types of secured overdraft. In case of charge documents CC (Pledge) needs Letter of Pledge instead of Letter of Hypothecation. the borrower surrenders the physical possession of the goods under the banks effective control as security for bank dues. the bank can sell the goods for the purpose of recovering the credit. with quarterly rest subject to change time to time. cash credit is sanctioned against pledge of goods or raw materials. Security against cash credit (Pledge) allocation: The security is as same as the hypothecation except no hypothecation of goods is necessary and list of stock is very much necessary with its value added to it. a. They are as follows: Secured Overdraft (Bid Bond). Letter of Disbursement. The pledge creates an implied LIEN in favor of the bank on the underlying merchandise. with the value assessed by the bank. Letter of Continuity.15% per annum. b. Memorandum of Deposits of the title deed. This credit facility thus allows a customer to overdraw to a certain agreed limit for a certain period.
Primary: LIEN of the work order or supply order. personal guarantee of Directors and hypothecation of raw materials. constitution and liquidity consideration. 2. Letter of Guarantee and Memorandum of Deposit of the title deed. The department officially issued a letter of acceptance to issue all checks bills etc. Letter of Continuity. Letter of disbursement. Letter of Guarantee and Merchandise of Deposit of the title deed. against the concerned supply/work order in favor of National Bank Limited. Charge documents: Promissory Note. repaying capacity of the customer and some other financial aspect of the . It is given against land and building along with machinery. DPS. Mode of Payment SOD (G): A fixed amount is deducted from each running deal towards reduction of limit proportionately and finally is adjusted within the validity. Letter of Arrangement. Letter of Arrangement. 2. Letter of disbursement. Charge documents: Promissory Note. Credit Administration and Monitoring: Credit Administration is process or managerial tool which is followed by the bank in case of sanctioning a loan amount to its customers for appraising the project feasibility. Letter of continuity. Secured Overdraft (General): These sort of secured overdrafts are mainly given against the work orders. Disbursement is made only after assertion of genuineness of the work order and after completion of all formalities. The bank can also give loan against various types of accounts like MSS. Registered irrevocable general power of attorney to be accepted by the borrower in favor. Letter of Lien against security. D. Etc. and Bonds etc. Term Loan: Jamuna Bank limited is advancing both short and medium term credit to the commercial sector on the basis of their capital structure. Security against SOD (G): 1. future returns. Secured Overdraft (Bid Bond) Secured overdraft is given against the security of financial documents. This overdraft applicable for any individual or trading concerns. Primary: Letter of LIEN and authority for advance against FDR/Bonds. These documents include FDR. Interest rate is 12% for SSI and 13% for MSI. Of the bank for direct collection of cheque and bills to be issued by the work-awarding agency against the supply of work order. Drawing shall be allowed only against the valid supply. Collateral: Registered mortgage of land or immovable property.1. There is no necessity of collateral in SOD (BB). There are two securities in SOD (BB). Letter of Lien against the security. FDR.
← If possible 6 months updated information of all related facilities. . Facility Evidence Maintenance Complete credit files help prevent loan loss resulting from imperfect security documentation. ← Credit file shall be maintained in a secured location and access restricted to authorized personal. ← Credit investigation results. The responsibility of the Manager to ensure at all times that the credit portfolio meets the standard set forth by the Bank. ← Borrower’s ability to repay. ← Copy of sanction letter and loan agreement. ← Checklist of all legal documents. Credit Administration: The principal elements of Bank Credit administration are as follows: Credit File Maintenance: Credit file should contain a history of the customer to ← Help credit officer track any problem ← Assist a newly assigned credit officer in understanding the customer ← Make the lending process transparent. Periodic Review and follow-up should ensure as: Turnover. ← Economic and competitive factors. ← CIB and other Bank reports and notes with borrower. repayment sources ← Collateral security with guarantees ← Quality of the borrower’s management. It is an important aspect of sanctioning a loan because the banks earning largely depend upon this. ← Confidential report given by other banks to the borrower. repayments etc of the borrowing accounts during the period have been satisfactory. ← Financial statements and analysis. Credit Monitoring and Review: The Branch Manager to monitor the overall profile and risk aspect of the credit portfolio in accordance with the criteria set down in the Bank credit policy. This file contains: ← Credit application ← Credit approval notes/analysis ← Information about borrower.proposed project. ← Facility Evidence Maintenance (Charge Documents). credit purpose.
Bankruptcy of the borrower. Past due principal repayment for 6 months as prescribed by Bangladesh Bank. Provision @ 50% of the base is required for debts in this classification. Significant decrease in the value of collateral securities. Classification may be as follows: Doubtful Debts: This classification contains debts where doubt exists over the full recoverability of the principal interest. which forebodes a future problem or affects borrowers credit worthiness. Unfavorable Bank/Trade reports of the borrower. conduct of the account. 5. Although a less in anticipated it is not possible at this state to quantify the exact extent of that loss. supporting information and documentation and degree of conformity to bank policies. Weakening in Bank’s position as a credit due to any reason whatsoever. The following features are present should be classified. Classifying of Loans and Advances: The classifications of credit are risk of the transaction repayment record.9. Incorrect information supplied by the borrower. financial capacity and record of the borrower. Earning of the account is cost effective. Any information. Management is required to purpose such debts with the utmost resolution to either avoid or minimize the Bank’s losses. Provision @15% of the base is required for debt in this classification is the outstanding balance less interest kept in interest suspense accounts less the value of eligible securities. Past due interest or other receivable payment for 6 months or more as prescribed by Bangladesh bank.Borrower’s business is being satisfactory. The responsibility for review and classification of credit starts at Branch level with the Branch Manager and second officer and Credit officer and finally the Head office Credit Division. It is the responsibility of . Bad Debts: These facilities as considered to be uncollectible or worthless even after all security has been exhausted and shall be provided for @ 100% of the base. Signification charge in the environment lending to a weakening of tile credit. These accounts will require close supervision by Management to ensure that the situation does not deteriorate further. Diversion of funds to uses other what the facility was approved for.3 Rating of the classification: This classification contains accounts where irregularities have occurred but where such irregularities are considered to be either technicalities or temporary in nature.
profitability and security. the bank can easily get return from the lending. Due to the asymmetric information and moral hazards.the branch Manager. Safety: JBL exercises lending function only when it’s safe and that the rise factor is adequately mitigated and covered. Second Officer. responsibility. the Branch Manager must work with the credit officer to develop an action plan for restoring the facility to facility to acceptable credit standards and to lessen the chances of a worsening condition lending to a loss. JBL follows the under noted principles of sound lending: Liquidity: It means that while lending adequate care has to be taken so that the liquidity is not compromised. JBL invests its funds in different sectors all over the country. Credit Officer to timely identify and to try take necessary steps to avoid classification of any facility. Safety depends on the security offered by the borrower and the he repaying capacity and willingness of the debtor to repay loan with interest. Moreover. That’s why JBL chooses such securities which posses’ sufficient liquidity. banks have to suffer a lot due to the classified loans and advances. It takes utmost care so that the project cannot be detrimental to the society as well as to the nation. resourceful and . Report from Credit Information Bureau of Bangladesh bank (CIB): . Yield: JBL is a private sector commercial bank so it considers sufficient yield as well as return on financing project: Productivity Purpose: Lending operations must be on productive purpose. If the selection of borrower is correct. The study includes the following: Account balances and past transactions Credit report from other banks Information of the industry by studying market feasibility Financial statement of the concern B. the credit officer studies the pas record of the applicant. Principles of Sound Lending: In order to secure a balance between liquidity. Selection of a Borrower: Selection of a borrower is a vital step for lending. monitoring made easier for the banker. Once loan is classified. capital and capacity or of reliability. National Interest: JBL considers national aspect of any project while financing in the project. which weakens the financial soundness of the bank. Studying the past track record After getting an application for any loan. Diversity: To minimize risk. as borrower’s character. Jamuna Bank follows the given procedures: A.
Capital. The types of risk are as follows Supply risk Sales risk Performance risk Resilience risk Management competence risk Management Integrity risk Security control risk Security cover risk The lending risk analysis provides 4 (Four) kinds of lending risk decision marks. conceptual skill and operational skill is qualitatively analyzed.A. Acceptable 3.Poor Bank shall not approve any lending having an overall risk as marginal and poor.This report is provided by CIB of Bangladesh Bank. Credit Risk Evaluation Assessment: It is important that to evaluate the risk of any credit. which are terms and conditions and collateral securities. the human skill. Capacity) or 3R(Reliability. which contains all types of information related to the borrower. Business Analysis Business Analysis is done from two angles. This report is needed for only when the amount of loan is more than Tk. D.Marginal 4. Responsibility). Borrower Analysis Borrower Analysis is done from the angle of 3C (Character. Resourcefulness. They are as follows: 1. Good 2.R. In this part work is done through to analyze the business risk and security risk in a matrix derived out of six segments of the business. Evaluation or assessment criteria formed by the bank credit manual and in its Head Office Circulars all proposals of credit .10 Lac. C. Credit Evaluation Principles: According to the Credit Evaluation Principles must need for every level of approval. The lending risk analysis tool containing analysis of both the business and security risk provides overall ratings of risk in a particular loan under the following process: Assess risk of failure to repay Decide whether to accept or reject a loan proposal Set price and terms obtain sanctioning documents and ensure repayment or recovery Monitor performance and ensure repayment or recovery Lending Risk Analysis (LRA): The most pertinent and prime part of the process is assessment of risk is the L.
Making policies and procedures for reviewing and analyzing the extensions of credit and loan portfolios. B. Board of Directors (BOD): The Directors have the responsibilities regarding the credit as follows: Policies. Managing Director 2. Senior Vice President 5. Delegating authority to approve and review Approving credit fir which authority is not delegated Approve of extension of credit that is contrary to Banks written credit policies. Executive Vice President 4. Vice President 7. analyze and approve of credit in accordance with the authority. Lending Authority: All approval of credit facilities must be conveyed under dual signature.Two lending officer of the required lending authority are not available. Deputy Managing Director 3. which is established by the BOD. Approval and Review to the Various Levels of Groups: A. Analysis. Statements and other papers have been obtained in accordance to order). Senior Assistant Vice President 6. The Jamuna Bank Limited Lending authority or authorized person or officers re as follows: 1. D.facilities must be supported by a responsibility of the proposing office to ensure that all necessary proposal documentation are collected before the facility request is sent to the sanctioning office. one of the signatory must have the lending authority. Ideally both the signatories must have the required lending authority . Policy Committee: Establish the lending policy. when this committee cannot delegate. To proceeds the credit proposal to the executive committee or BOD. Make ensure that the credit application (Forms. . Procedures are established for approving and reviewing credits. Executive Committee: Responsibilities of the executive committee for approving the loan are as follows: Approving credit facilities delegated by the Board Supervise and implementation of the Board decisions Reviewing the each extension of credit approval by the Head Office credit committee or Managing Director Keeping the Board of Directors information C. Procedure. Evaluate the quality of lending staff in the Bank and to take proper steps to improve. Head Office Credit Committee: The Head Office Credit Committee has the following rights and responsibility regarding sanctioning the loan: Review. Assistant Vice President Responsibilities for Credit Policy.
) Letter of Continuity Letter of lien (in case of advance against FDR) Letter of lien and ownership/ share transfer form (in case of advance against shares. E. manuals. Responsibilities of this Committee are as follows: First responsibility to the Manager for each lending. Income Statement. Letter of arrangement Letter of continuity Letter of pledge/ agreement of pledge in case of cash credit pledge .) Letter of lien and transfer authority (in case of advance against PSP. Justification/Consideration for Tile facility. Continuously reviewed the all credit facilities by the branch manager with the other members of the committee. BSP) Legal documents for mortgage of property as draft by legal adviser. Comply with the applicable instructions. and other rules of t the Bank as well as Bangladesh bank. Branch Credit Committee: This Committee is to be headed by the Branch Manager and other member to be selected by the manager as well as the consultation with Head Office. which to submit to the Head Office Documentation for Lending: General Documentation required for different kinds of advances are as follows: A.Confirm that the procedure is consistent with loan policy and also maintain the Bangladesh Bank guidelines. circulars. Loan: D. their financial condition with comparative statement. B. partners and also the directors. Comply with necessary and customary internal and external control and safeguard.P Note Letter of partnership (in case of partnership firm) or resolution of BOD in case of Limited Company. Cash Credit: D. Credit proposals submitted to Head Office. latest balance Sheet. Continuously verification for reviews the project and find out the facts and make a report. Know their borrower fully. Take review and monitoring action of the credit. Review and analyze the history of antecedent of the management personnel.P Note Letter of Partnership (incase of partnership concerns or resolution of the BOD of the company in case of limited companies. Credit Division for establishing the policies and procedures. Operating Result and Supplementary facts and Personal Net Worth Statement of the proprietor.
Installment Repayment for Every Month Party A/C-----------------------------------Dr. Authorized officer of the branch ensure and then approve all the documents before exercising such authority that all the documentation has been completed. Consumer Credit Scheme (CCS): In case of Consumer Credit Scheme the following papers and documents are necessary to issuing the loan: The applicant must be any of the following group personnel: Govt. Air Conditioner. Income A/c 1% service charge------------Cr. Journalist etc) The Customer can enjoy the following consumer goods under the Consumer Credit Scheme: Computer. All the required documents should be obtained before any advance is disbursed. Stamp Charge------------------------------. Accounting Treatment for Credits and Loans: For Consumer Credit Scheme Loan A/C--------------------------------------Dr. Home Theatre. Party A/C------------------------------------. Telephone and Other Home Appliances.Cr. Letter of arrangement Letter of hypothecation of bill. Washing Machine.Cr.Dr. Company or Service in any financial institution Defense Persons Teacher of University or College or School Private Service Holder Any Professional (Doctor.Letter of hypothecation in case of cash credit (hypo) Legal documents for mortgage of property as draft by legal adviser C. Letter of acceptance. Home Furniture. 25% Down Payment (Down Payment is always changeable) 2% Fund Risk 1% Service Charge The all above charges is to be debited to the party A/C.Cr. where it calls for acceptance by drawer. Lawyers. Motor Car. .P Note Letter of partnership (in case of partnership firm) or resolution of BOD in case of Limited Company. Bills Payable A/C--------------------------. Bills Purchased: D. Employee Corporate Service Holder Bankers. Television. Income A/c 2% fund risk-----------------. Engineer.
Firms and organization requires foreign exchange to purchase goods and services from abroad or for purposes of investment or speculation. Foreign Exchange is the rate of exchange in both countries currency.10 Freign Trade and foreign Exchange: Foreign trade refers to trade between the residents of two different countries. House Building etc. Foreign Exchange means the currency of other country. (Down Payment. (When loans settle by exchange rate) 5. It involved the investigation of the method by which the currency of one country is exchanged for that of another.(Installment Size) Loan A/C-----------------------------------Cr. stamp charge alls are included) Installment Repayment for Every Month: Party A/C-----------------------------------Dr. (Installment Size) Loan A/C-----------------------------------Cr. which is. Foreign Exchange is that section of economic science. 1% service charge. Bills payable A/C-----------------------------Cr. Other Credits or Loans (SOD. 2% risk fund. which have the legal right to handle foreign trade and foreign exchange.) For First Disbursement: Loan A/C---------------------------------------Dr. Each country functions as a sovereign state with its set of regulations and currency. Bills Purchase L Party A/C-----------------------------------Dr. Bank is the only concern. the causes which rented such exchange necessary the forms which exchange may take and the ratio or equivalent values at which such exchanges are effected. which deals with the means and method by which right to wealth in one countries currency are converted into rights to wealth in terms of another country’s currency. When in Foreign Currency Transaction (FC) FC PGL or S/D----------------------------Dr. Loans and Interest A/C-------------------Cr. When loans settle by interest Exchange Gain-----------------------------Cr. converted one national currency into another and transferred from one country to the other countries. Party A/C---------------------------------------Dr. CC. . (Installment Size) Loan A/C-----------------------------------Cr. Foreign Exchange is a process.
A letter of credit is a letter from one banker to another authorizing the payment of a specified sum to the person named in the letter on certain specified conditions. the employee who is related of the bank to foreign exchange. Commercially. ← Restrictions imposed by countries on import and export of goods ← Restrictions imposed by nations on payment from and into their countries ← Difference in legal practice in different countries ← Foreign Exchange means foreign currency Functions of Foreign Exchange The Bank acts as a media for the system of foreign exchange policy.The difference in the national of the exporter and importer presents certain peculiar problems in the conduct of International trade and settlement of the transaction arising here form. For this reason. such important problems are: ← Different countries have different monetary units. the exporter may require the foreign importer to open a letter of credit at . letters of credit are widely used in the international import and export trade as means of payment. In an export contract. especially foreign business should have the knowledge of these following functions: Rate of Exchange How the rate of exchange works Forward and spot rate Methods of quoting exchange rate Premium and discount rate Risk of rate of exchange Causes of fluctuations of rate of exchange Exchange control Convertibility Exchange position Intervention on money Foreign exchange transaction Foreign Exchange trading Export and import letter of credit Non-commercial letter of trade Financing of foreign trade Nature and function of foreign exchange market Rules and regulation used in foreign trade Exchange arithmetic Letter of Credit (L/C): Meaning A letter of credit is an instrument used by a bank to its customer placing at the letters disposal such agreed sums in foreign currency is stipulated.
A revocable letter of credit can be amended or canceled by the issuing bank at time without prior notice to the beneficiary.the importer’s local bank for the amount of the goods. All credits must clearly indicate in major categories: Sight payment credit (b) Deferred payment credit (c) Negotiating credit (d) Revolving credit (e)Transferable credit Parties to a Letter of Credit: A letter of credit is issued by a bank at the request of an importer in favor of an exporter from whom he has contracted to purchase some commodity or commodities. The importer the exporter and the issuing bank that is involved in various capacities and at stages to play an important role in the total operation of the credit. Irrevocable letter of credit constitutes a firm undertaking a high degree of assurance that he will pay to his goods or services provide he complies with terms of the credit. Types of Letter of Credit: Letter of credit is classified into various types according to the method of settlement employed. Irrevocable Letter of Credit: If any letter of credit can not be changed or amended without the consent of the importer and exporter is known as irrevocable letter of credit. The Opening Bank The Advising Bank The buyer and the Beneficiary The Paying Bank The Negotiating Bank The Confirming Bank Components of a Letter of Credit: . This will state that it is to be negotiable at a bank in the exporter’s country in favor of the exporter. often the exporter (who is called the beneficiary of the credit) will give the name of the negotiating bank. Forms of Letter of Credit A letter of credit may be of two forms. These are as follows: Revocable Letter of Credit: If any letter of credit can be amendment or change of any clause or cancelled by consent of the exporter and importer is known as revocable letter of credit.
In general L/C contains the following information: Name of the Buyer: Who is also known as the accounted since it is for his A/C that the credit has been opened.I. Procedures of Opening Letter of Credit: The importer after receiving the performed invoice from the exporter. which is normally dependent upon the requirements of the buyer. the bank will only agree to this request if it can rely on reimbursement by the applicant. the importer request to his bank to make a promise of payment to the supplier.F Tenor: Tenor of the draft. the buyer may exercise control over the time of shipment. Documents Required: Which will normally include commercial invoice. The contents of the L/C of different banks may be different.B and C. The applicant cannot prevent a bank from honoring the documents on the grounds that the beneficiary has not delivered the goods on redder reissues as contracted. The client must have a current account with the bank. Expiration Date: Which is specified the latest date documents may be presented. by applying for the issue of a documentary credit. The applicant must therefore have adequate funds in the bank A/C or a credit line sufficient to cover the required amount. The importer submits the following documents before opening of the L/C: Tax Identification Number (TIN) Valid Trade License .Bank normally issued letter of credit on firms. General Description of the Merchandise: Which briefly and in a general manner duly describes the merchandise covered by the letter of credit. Once the bank has issued the credit its obligation to pay its conditional on the presentation of the stipulated documents within the prescribed time limit. if the source is to be effected by the beneficiary and original bills of loading. insurance policies as certificates. which clearly indicates the banks name and extent of the banks obligations under the credit. Moment of the Credit: Who should be the value of the merchandise plus any shipping charge intent to be paid the credit. Trade Terms: Such as F.O. consular or customer invoice. As a rule accepted as the sole security for the credit particularly if they are not the shorts of commodity that can be traded on an organized market. Banks deals in documents and not in goods. Obviously. In this manner or by including additionally a latest shipping date. Name of the Seller: Who is also known as the beneficiary of the credit.
Import Registration Certificate The Bank will supply the following documents before opening of the L/C: LCA form Application and Agreement Form IMP Form Necessary charge documents for documentation The above documents/papers must be duly signed and filled in by the party according to the instruction of the banker. the shipping documents have not discrepancy. Documentary Letter of Credit (Export/Import Documentation): Documentary Letter of Credit is such kinds of commercial letter which a bank issue on behalf of foreign seller (exporter) according to the direction of the purchasers (importers). These are as follows: Bill of exchange Bill f lading Airway bill/ railway receipt Commercial invoice Insurance policy Certificate of origin Packing list Bill of entry The exporter submits the following documents/papers to the negotiating bank: Bill of Exchange/draft Bill of lading Airway bill/ railway receipt Commercial invoice Insurance policy Certificate of origin Packing list Weightiest and measurement list Others etc. Payments against Documents (PAD) Banks deals in documents and in goods. If the importer has not adequate funds in the banks A/C then the bank payment to the foreign bank against the shipping documents. The documents shown under are known as export document from the importer’s side. Otherwise. Calculation: . If the shipping documents the L/C is in order than the L/C opening bank must have to payment to the foreign bank within 3 (three) days or 72 hours according as Uniform Customs and Practice for Documentary Credit (UCPDC) 500 of revision of ICC. then the L/C opening bank informed to the negotiating bank within 7 (seven) days. If the shipping documents have any discrepancy.
Draft Amount Less: Margin Net Amount Add: Interest Total PAD Amount L/C operation of Jamuna Bank Limited Tk……………. Indent/performed invioce/contract-3 copies. Insurance cover note with premium paid receipt. Fluctuation in the parameters of foreign trade immediately brings about some impact on the total economy. By exportimport business the bank play a great role to the economy of Bangladesh. This is a set of quintuplicate and the authorized dealer will issue LCA form to the individual importer at their request. IMP form one set duly signed by the importer. For this purpose the importer is to apply through L/C authorization from LCA form.e. Tk……………. Before opening L/C in favor of the exporter the entitlement of the importer to be registered with Bangladesh Bank. 2nd copy is known as custom purpose copy which will be handed over to the importer who will clear the goods from the port of its arrival through this custom purpose copy of LCA along with other shipping documents.. all these factors are to be considered very carefully for making necessary adjustment to match with the national economic policies as well as achieve balanced economic growth through the inter policy and inter co-ordination. Any other documents if necessary. source of funds for payment and receipt. The importer will come to Mohakhali Branch of Jamuna Bank Limited with request to open L/C along with the following documents/papers: L/C application and agreement for with adhesive stamp of Tk. the corresponding time period. Moreover the items of import and export value and volume of the same. the importer will submit it to authorized dealer who interns forward the same to Bangladesh Bank for registration where fund is purchased from Bangladesh Bank. import and export is of a great concern to the government of a country. Foreign trade plays a vital role in the economic advancement process of a nation. Now a days Jamuna Bank Limited is one of the leading and most successful banking enterprises in the country. After registration Bangladesh Bank forward the 1st and 2nd copy of LCA form to the authorized dealer. Tk……………. ________________ TK……………. So the trend of country’s foreign trade. There may be some areas where emphasis is to be given while there may be others which deserve restrictions or discouragement.. i. 3rd and 4th copy to CCI&E and keep the 5th copy as their office copy. 1st copy of LCA is known as exchange control copy against which authorized dealer can open L/C at the request of the importer. It play a great role in the economy of the country. As such the nature..50. . trend and the volume of foreign trade are required to keep peace with the national economic needs and objectives. ---------------------Tk…………….. After filled up and signed by the appropriate column of the LCA form.
e. The Bank with whom the exporters submits the documents is known as Negotiating Bank at this negotiates the document i.. On receipt of the shipping documents from the negotiating bank. If every thing is in order wise completed the Bank will make payment of the amount of L/C to exporter in their local currency by debiting to their own account. The importer will asked to the delivery documents by making payment of the bill amount excluding the margin deposited at the time of opening L/C. Into foreign currency at the existing B>C selling rate of exchange. Subsequently the negotiating Bank will claim the L/C with Head Office of L/C opening bank maintained foreign currency amount. On receipt of the L/C the Advising Bank after verification of the duplicate copy at their end. This is known as Reimbursing Bank. Simultaneously the negotiating bank will forwarded all the documents submitted by the exporter to the L/C opening bank as per instruction of the L/C. Invoice and other documents as specified in the L/C and submits the same along with the original copy of L/C to his Bank within the time mentioned in the L/C. Payment of bill amount and to take delivery of documents by the importers is known as Retirement of Imports Bill. Care must be taken so that the limit of Bangladeshi Taka is not exceeding any way. The exporter will prepare Bill of Exchange. the documents will be lodged. After getting the L/C the exporter prepares the goods and ship the same as per instructions of the L/C and obtain a Bill of Lading from the shipping authority. the negotiating bank. This Bank is known as Advising Bank. If there is no discrepancy. Lodgment of documents means the entry of the particulars of the documents in registers and preparation of vouchers by converting the foreign currency amount into Bangladeshi Taka as the exchange rate prevailing on that date. The foreign currency value of the L/C must correspond the equivalent amount of Bangladeshi Taka if LCA registered with Bangladesh Bank. The negotiating Bank will scrutinize the documents with terms and conditions of the L/C very carefully.Authorize dealer will scrutinize the documents and open the L/C in favor of the exporter by converting the Bangladeshi Taka. The authorized officer of the authorize dealer will check the L/C carefully and signed the same jointly and forward the 1st and 2nd copy to their foreign correspondent situated at the nearest place of the exporter. L/C opening bank will carefully scrutinize the documents with terms and conditions of the relative L/C. Flow Chart of Import Mechanism Import Export . makes payment to the exporter. This amount due to the importer. Reimbursing Bank will make payment to the negotiating bank by debit to L/C opening Bank’s Head Office A/C. the date of forwarding letter of negotiating bank should be date of negotiation of documents.
” Preparation of Voucher: The following vouchers are to be prepared: Lodgment Voucher: Dr. Reimbursing bank A/C Liability Voucher Liability Voucher to be reserved which was originated at the time of opening L/C Dr. the importer will deposit the required amount and take delivery of the shipping documents. the L/C opening bank will calculate the charge. Amount in foreign currency to be converted into Bangladeshi Taka with the exchange rate prevailing on the date of lodgment. PAD/Draft amount +Negotiation Commission (if any) Cr. the L/C opening ban will make entry the particulars of the documents into Inward Foreign Bill Register and prepare the voucher by converting the foreign currency into Bangladeshi Taka. if it is found in order the officer concerned will brand a rubber stamp “Checked and Found Correct” which will be followed by his initial. which are submitted by the export to his bank as per terms and conditions of the L/C are known as shipping documents. Accounting Treatment for Remittance Vouchers: Dr. On receipt of the documents from the negotiating bank. This stage is known as Remittance of import bills. Opener A/C Dr. which are to be realized from the importer. On the last working day of the month returns of bills of lodged during the month through IMP from to be sent Foreign Exchange Department. Sundry Deposit A/C (Margin on L/C) . This stage is known as lodgment of import bills. Bangladesh Bank. Bankers Liability on L/C (Cash) Cr.Lodgment of Import Bill: The documentary letter of credit constitutes of the important methods of financing trade. Before retirement of import bills. The L/C opening bank may receive these documents from his foreign correspondent bank in two ways: Documents on collections basis Negotiated documents Procedure of Lodgment After scrutinizing. The full sets of documents. Customers Liability on L/C (Cash) Documents of Remittance: On receipt of the copy of the lodgment voucher from the bank. Particulars of documents to be entered in the “Inward Foreign Bill Register. Because of the placement of the phenomenal growth in world trade and commodity wise diversification of trade its importance had significantly increased.
Certification of Invoice: Invoice to be certified as follows because the custom authority will impose custom duty on the certified amount: |Certified that Invoice amount | . LCA No. PAD/Draft Amount (Any other charge vouchers if necessary. After scrutinizing. Bill f Exchange (Draft): Whether it is drawn in order Whether the amount draft corresponds with the L/C amount Draft amount should be equal or less than the L/C amount Whether the date of the draft within the date as per LC etc. Bill of Lading: Whether the bill is clean Whether the date of B/L is within the date of shipment as per L/C Whether the freight is prepared or not as per L/C terms Whether the part of shipment and part of destination are similar as per L/C Whether the full sets of B/L dispatched by negotiating ban Whether the title of B/L belongs to L/C opening bank C.. Forwarding schedule of negotiating bank Whether there is any transaction Whether these instructions can be complied with Whether the negotiating commission realized A. Other Documents: Whether all other documents are prepared as per L/C. no discrepancy Minor discrepancy.Cr.e. B.Acceptable to the importer Major discrepancy – May be acceptable to the regulations or those are irrevocable. Commercial Invoice: Whether the full particulars of goods have been incorporated Whether the amount of invoice corresponds with the amount of bill of exchange as per the L/C terms Whether IRC No.) Scrutiny of the Documents: The L/C opening bank being received the documents from the negotiating bank will scrutinize the documents with the respective L/C terms and conditions. the official concerned may found the following: Documents are in order i. have been incorporated Whether the beneficiary signs it D.
) | Authorized Officer (P. Mohakhali Branch.A No.|US$---------------------------------------------------------. 32.) | |Endorsement of Bill of Exchange | | |Receive Payment | |For Jamuna Bank Limited | |Mohakhali Branch.is correct | | | |For Jamuna Bank Limited | |Mohakhali Branch. Authorized Officer (P. On receipt of the | Authorized Officer (P. If the importer is not in a position to retire the bill out of his own sources of funds at that moment may request the bank to clear the goods creating LIM Account.) | | Loan against Import Merchandise (LIM) Form: Import finance plays a vital role in countries foreign trade and business. LIM Account is opened due to the Importers request or by force. In other words it may be referred as an advance against import merchandise.A No. Mohakhali Branch. After lodgment of the documents. LIM Account on Importers request.) | . Dhaka. Import of goods and services are needed not only for export production but also to supply domestic industry with the necessary inputs. | |Endorsed Bill of Lading | |“Please deliver to the order of’ | |(Name of the Importer) | | |Authorized Officer (P. Loan Against Import Merchandise (LIM) is a facility provided by the bank to the importers who are in shortage of funds to retire the import bills and thus to clear the goods from the Port Authority. which are not locally available at uneconomic cost and are needed for expansion and development. Dhaka.A No. 32.A No. the importers concerned to be intimated for early retirement of the documents by paying outstanding bill amount including other charge.
CIBTA/ Payment Order A/C Cr.e. ------------------------Tk.80 /. Customer A/C Dr. The following charge documents have to be executing by the importer: DP Note (Demand Promissory Note) Letter of Arrangement Letter of Disbursement Letter of Pledge Any other documents if necessary The branch manager is not empowered to sanction the LIM A/C in favor of the importers for clearance of the goods without obtaining the approval from Head Office. C & F Agents bill (Approx) 5). Efforts should be taken so that at least 20% to 30% margin of the landing cost may realize from the importer. ------------------------Tk.(Flexible) regarding the stipulated period sanctioned to the importer to be obtained.importer request the official of the import bill section will prepare an office note by calculating the total landing cost of the consignment. On getting approval from the Head Office on the note the branch will send the documents to the port city branch by endorsing the Bill of Lading in favor of them with certification of invoice for clearance the goods through importers nominated as well as Banks approved C & F agent. LIM A/C Cr. Before sending the documents to the port city branch and under taking on prescribed form with adhesive stamp of Tk.. Miscellaneous (Approx) Total Landing cost of the goods = Less: Margin retained at the time of opening of L/C Less: Further margin to be realized from the importer Banks Liability will be -----------------------Tk-------------------------Tk. Invoice Amount 2) Customs Duty % 3). -----------------------Tk. Value Added Tax % 4). The following recording entries and vouchers are generally to passed in the set of retirement vouchers on the same day at the branch: Dr. clear instruction to be given for dispatching the goods either by train or by truck duly insured branch managers will have to take prior approval from International Division. ------------------------Tk------------------------Tk. Realization of margin will depend on the banker’s customer relationship and also on the marketability of the goods. In the forwarding letter. To ascertain the landing cost the following points to be considered: 1) Bill Amount i. ------------------------Tk. Payment against Documents A/C . Head Office to create LIM Account in favor of importers. ------------------------Tk.
Other formalities the connection with the forced LIM A/C will be the same as in the case of LIM A/C created on importers request. Chapter 6: Problems and Recommendations 6.2 Problems Faced By the Bank . Forced LIM Account: After immediate lodgment of documents the branch incumbent and concerned dealings officials shall vigorously pursue importers for retirements of bills. 6. But its not all and final.1 Prelude 6. In this case banks facing some problems in which some are traditional and some are new. After clearance. With this realization as a service oriented concerns bank scopes of performance are diversified. No further L/C’s of the party for whom the bank was forced to the clean consignment and party failed to take delivery of the goods within the time specified below under the Head Office disposal of LIM stocks should be opened without prior approval from Hear Office even if the same is within the discrepancy power of Branch Manager. the goods should be started either in Banks godown or in importers godown under banks lock and key and the particulars of goods to be entered in the space provide din the LIM register. With this diversification Banks tries to provide better service to its customers and clients. PAD should not remain outstanding for more than 30 (thirty) days or within the date of arrival of ship which ever is earlier the branch should sent the document for clearance the goods.4 Conclusion 6. As a new generation bank Jamuna Bank limited is also facing some problems.2 Problems faced by JBL 6.3 Recommendations 6. The authority is hardly trying to solve the problems. At the same time issuance of goods stored at the banks godown and other miscellaneous charges in connection with the LIM A/C will be paid by debit to pays LIM A/C under advice to the importer.The particulars of LIM A /C must be entered and vouchers to be posted in the LIM register.1 Prelude Once upon a time the human civilization needs were limited but due to the increased demand of time and with the rapid expansion economic activities mans need are diversified in unlimited spheres.
Incase of online banking low speed of network is a problem and it consumes valuable time of the busy customers. Overall political unrest is an indispensable problem to the bank to provide regular service to its customers. But these branches are always not able to produce the expected return to the bank. customer behavior. Bangladesh Banks rules and regulations. All customers are not concerned about the latest technology based services and all are not readily interested to accept the technology-based services. lack of experienced personnel etc. maintenance of liquid assets. Employees must be provided with adequate working equipment in order to provide better customer service. Due to this customer are not interested to take these services. The problems faced by the bank are recorded as follows: The first problem is related to increasing market competition. As a new bank JBL facing the lack of experienced personnel which create some problem in case of offering better service to the customers and clients.3 Some Recommendations to overcome the problems: As a new generation commercial bank yet JBL facing to some serious problems but it is also true that these problems may be turn into opportunity if the authority takes some initiatives. In case of appointment of personnel the disguised pressure of owner group creates some unavoidable problem. High cost of technology based services is an obstacles. These problems are related to operation of daily banking activities.Jamuna Bank limited as a new generation commercial bank has facing a lot of problems in compare with the other banks. High cost of setting the latest technology based services is an obstacle to its rapid expansion. customer services. The initiatives may be as follows: The working condition should be improved. Due to tremendous financial strength of Multinational Bank JBL has facing to some problem. Due to BB order among every five branch one branch should be open in the rural area. 6. Insufficient salary of junior officer is an obstacle to provide better services. . JBL should recruit experienced personnel from other banks and financial institutions in order to provide better and efficient banking services and ensuring growth. opening new branches. The overall high cost of capital is a barring to its market expansion and due to this the operational expenses are increased. Due to increased competition JBL has to facing increasing promotional and advertising cost and it is an obstacle to rapid expansion to reaching the large people at a time. In case sanctioning loan always it is not possible to study the proposal due lack of time and experienced manpower. As a new bank JBL has facing some problems in case of compete with some well-set banks. JBL uses Flora Bank (Online Banking Software) which is not comprehensive software for modern banking.
Ensure collection of periodical reports. local and foreign remittances. as a service sector of Bangladesh continues to contribution to a great deal in the economy of Bangladesh. Account opening process should be made easy to attract the customer. Bibliography 1.4 Conclusion From the very of civilization of time Banking activities is a critical job and the present days banking business is very competitive and complex. 6. The competing banks performance should be carefully monitor regularly. This report is being done on the subject of “Operational Commercial Bank: A Case study on Jamuna Bank Limited. Al-Quran . cash receipt and payment. Ensure the security / collateral has been assessed correctly and the security is maintained properly. Attractive incentive packages should be provided to the exporter. Banking sector. complex clearing process etc. Ensure that the disbursements are made as per procedure and terms of sanction. New and modern banking equipment should be arranged for providing better services. Yet it a newborn bank though it is pt affect4ed by this danger. I think this experience will set me in the advantageous position in future. Bank should regularly review and update the present marketing strategy. the online banking software should be regularly updated. which ensure certain. Political and organizational pressure should be eliminated in case of sanctioning loan. From the observation of the study I have gain some practical knowledge on account opening.” From the survey and observation of the study I try to gain some practical experience on critical general banking system. JBL is marching in an aggressive way to reach the all levels of clients and customers. Bankers Customer relation should be closer and regular communication with the customer should be maintained. New branches should be opened in the economically promising area.Multipurpose new schemes should be introduced to attract the clients and to enhance the deposit. foreign trade and foreign exchange mechanism. In case of sanctioning loan and advances the documents should be properly check and appraised in order to ensure repayment of the loan amount. returns and information about the borrower and the activities of projects financed. In this age of competition. every bank is passing the operational functions in hard competition. and mentioning position in the market. sanctioning of loan and advances. Jamuna Bank Limited is the Third generation most modern commercial bank which has passed four years in operation and now enjoying the fifth year of operation. Banks own training institute should be established. Flora Bank. on Gulshan Branch.
www. Annual Reports of JBL during 2002-2005 3.14 |155.00 | |3 |Total Capital |390.org 4.00 |1600. New Delhi.00 |1600.00 |390. No |Particulars |2001 |2002 |2003 |2004 |2005 | |1 |Authorized Capital |1600.95 |199.00 |429.506 |115.40 |8951.28 |3239.00 | |2 |Paid up Capital |390.89 |6614. Shekhar.22 |61.00 |1600.45 |1514..52 |14454.11 |4766.93 |891.22 | 12559.65 |916.2 | |12 |Interest Earning Assets |-|4946.59 |9766.54 | |5 |Total Assets |4210.83 | |8 |Total Contingent Liabilities |145.56 |483. K.78 | 13491. Vol.82 | |10 |Classified Loans |-|-|.C.46 | |4 |Capital Surplus / (Deficit) |-|255. (2000) “Banking Theory and Practice” 18th edition.80 |11011.jamunabankbd.(((((.75 | .76 | |6 |Total Deposit |3795.35 |204.52 |16863.541 |1772.63 |1.97 |674.51 | 6722.22 |15551.95 |5445. www.00 | 1600.00 |429.Dec.16 |5290. 2000 9. 2004 Appendix-1 5 (Five) Years Financial Performance of Jamuna Bank Limited (In Million Tk) |Sl.05 | |11 |Provision against Classified Loans |-|-|. Number 4.13 | |7 |Total Loans & Advances |333. Vikash publishing house.bangladeshbank-bd.04 |10. Published booklets and hand bills of JBL 5.76 | 2903. Bangladesh Bank Bulletin.30 | 148.00 |390.68 | |9 |Profit after Tax & Provision |-|. Oct.82 | 51.70 |405.63 |2.05 | 10264.2.com 4.
01 | |14 |Income from Investment 80.20 | Appendix-2 BALANCE SHEET As at December 31.91 |-- |N/A |2.02 |8.58 | |21 |Price Earning Ratio |N/A | |22 |Return on Investment (ROI) |6.032 |38.207.000.68 |N/A |2.93 |65.935 | 274.929.371.|13 |Non.46 | |17 |Cost of Deposit |8.737 | |Outside Bangladesh |18.104.22.1682.741 | |In Hand (Including Foreign Currency) |152.58 |344.Interest Earning Assets 932.29 |0.06 |0.629.37 | | |31. 2005 | |-|2.35 |PROPERTY AND ASSETS |2005 (Tk) | 2004 (Tk) | |Cash |81.673 | 2.477 | |Balance with B.B and its agent Banks |659.77 |-|-|9.94 |1.98 |0.50 |0.68 |48.30 | (In Percentage) |15 |Credit Deposit Ratio | | |16 |% of Classified Loans |.43 |126.000 | .16 |36.141 |3.06 |N/A |4.043.025.000 | 1.04 |7.097 | 113.562.156 | |In Bangladesh |2.781.037.35 |N/A |6.84 |1.35 |36.264 | |(Including Foreign Currency) | | | |Balance with other Banks and Financial Institution |2.47 |822.214.171.1249 | |Money at call and on short notice |60.000.468 | 113.395.18 | |19 |Earning Per Share (EPS) |46.25 |15.79 | |18 |Return on Assets (ROA) |1.58 | |20 |Net Income Per Share |46.16.29 |1312.19 |15.05 |-|-|-|0.14 |14.798.56 |27.35.632.
450.354 | 1. Other Banks.000 | |Deposits and other accounts: |14.523.888.777.491.B.899.235 | 5. Overdrafts.405.988.757 | |Bills Payable |109.005 | 581.315 | 10.505.215 |13.136. Financial Institutions and Agents | 867.160.302 | |Bills purchased and discounted |1.|Investments |2. etc.997 |444.166.501 | |Savings Bank Deposits |749.849 |78.507 | 614.334 | |Loans.722.037.394 | .698.302.057.028.707.703.391.967 | |Bearer Certificates of Deposits |…… |----| |Short Term Deposits (STD) |384.454.654 | |Government |1.401.129. |9.721 | |Deposit Under Special Scheme |731.330 | 905.320 | 1.286.032 | |Fixed assets including premises.477 | |Fixed Deposits |10.377.863.9126.96.36.1997.479.800.804.154 | |Loans and Advances |11.991 | |Current A/C and Other A/C |1.516.069.555 | 6.317.416.136 |97.500 | |Others |532.500.464.800 | 950.304.533.052 | 238.543.048.011. furniture and fixtures |106.554 |213.836 | |TOTAL ASSETS | | | | | | | |LIABILITIES & CAPITAL |2005 (Tk) | 2004 (Tk) | |Liabilities: | | | |Borrowing from B.811 | 802.834.073.765. Cash Credit.266 | |Other assets |393.163.685 | |Non-Banking assets | |-------| | |16.835.793.000 |2.
617 | |Other Operating Income 200.|Foreign Currency Deposit 7. December 2005 |Particulars | |Interest Income 1004359239 | |Interest paid on Deposits and Borrowings etc.863.74.308 | |Capital / Shareholders Equity | |Paid up Capital: 429.82.320.393.043 | |37.309.056.836 | | Appendix-3 PROFIT AND LOSS ACCOUNT For the Year Ended 31.624.215 | | | |2005 (Tk) |1374379710 |2004 (Tk) | |1045462115 |328917595 |126303992 |211337861 |38249889 |704809337 | | | | .491.000 | |(42.884.000 Ordinary Shares of Tk.158 |807.606 | |429.672.24.000 | ||149.451 |228.94.738.174 | |Other Liabilities 385.542. Exchange and Brokerage |188.8.131.523.925 | |Total Shareholders Equity 607.203.468.703.000.528 | |TOTAL LIABILITIES & Shareholders Equity |13.291 |16.609 || | | | | | | | | |16.441 | |Total Operating Income 51.39.695.100 each) | |Proposed Bonus Share | |Statutory Reserve 77.000.298 | |Commission.761 |734.687 | |Invest Income 804. |726064552 | |Net Interest Income 27.603 | |Surplus in Profit and Loss A/C 101.765.010.317 | |Total Liabilities 12.36.
990 | |Retained surplus brought forward from prev year |184.108.40.2065 | . 9452847 | |Stationery.50. 26775150 | |Legal Expenses | |Postage.74.59.72. Repairs & Maintenance 1.704.97. Telecommunication etc.096 | |Depreciation. Insurance.000 | |Retained Surplus | |Earning Per share (EPS) / Adjusted EPS of 2003 36.026 | |Provision for Taxation for the Year 11.949 | |Provision for Loans and Advances 220.127.116.110 | |Other Expenses | |Total Operating Expenses 203642094 | |Profit Before Provision 18.104.22.168 | | | | |2.35 | |110139273 |32883242 |354101 |20035922 |16238084 |2098485 |60000 |3297581 |17492129 |82269758 |284868575 |419940762 |56631523 |363309239 |163489158 |199820081 |101309925 |301130006 | | |72661848 | |228468158 |22.214.171.1247 | | | |60.51.19.|Salary and Allowance 94493095 | |Rent. Stamps.740 | |Retained Surplus Before Appropriation 15.59.595 | |Directors Fees and Other Expenses 126.96.36.1990 | |Appropriation: |Statutory Reserve (20% on pre tax profit) 5.59.805 | |Proposed Dividends as Bonus Share 9.036 | |Net Profit after Taxation 15.923 | |Total Profit Before Taxes 273. 1. Taxes.88.000 | | |40837161 | | | | | | | | |18. Electricity etc.31.953 | |Auditors Fees | |Managing Directors Salary & Allowance 41. Advertisements etc.94. Printings.
Consumer Goods.12 of 1995 and BRDP Circular No. significant pressures on economic performance and among others. After Keeping provision against Loans & Advances in line with the instructions of Bangladesh Bank Circulars BCD Circular No. [pic] The total export business handled by the bank stood at tk.21 million in the preceding year registering a growth of Tk.13%. Chairman Mr. Fazlur Rahman Vice Chairman Mr. 7923. Jamuna Bank Limited was able to increase its customer’s confidence and mobilized a total deposit of Tk.3801.454.90 million compared to Tk. Accessories. In the year 2005. 308. BCD Circular No.83 million of 2004 recording a excellent growth rate of 35. declining trend in interest rates and despite a devastating flood. the adverse impact of devastating flood in JulySeptember 2004. Machinery. due to many uncertainties on economic front.13 million in 2004.20 of 1994.----------------------[pic] In 2005 Jamuna Bank Limited registered an operating profit of Tk. 14. [pic] Deposit is always been termed as the life-blood of a commercial bank.46%.80 million in the year 2005 which was Tk. 16 of 1998. Fabrics.94 million as against Tk.80 million in the year 2004 showing a growth 36.etc.98% in the year. BCD Circular No.31 million in 2005. 419. the profit before tax stood at Tk363. Shaheen Mahmud . [pic] [pic] “YOUR PARTNER FOR GROWTH”. The Bank was able to open substantial amount of Import Letter of Credits in 2004.6521.108. The main items were Industrial Raw Materials. 34of 1989. Readymade Garments (RMG) is the highest foreign exchange earner of the bank and for the country. 4790. [pic] The total business handled by the bank during 2005 was Tk.
M Shawkat Md. Atiqur Rahman Golam Dastagir Gazi. Md. Nazrul Islam Company Secretary Kazi Friduddin ahmed. Anindya Majumder . FCA Deputy Managing Director Mr. Sirajul Islam Varosha Mr.K. Belal Hossain Md. Bir Md. Irshad Karim Mr.Directors Al-Haj M. Farhad Ahmed Akand Managing Director Mr. Md.A Khayer Mr. Mahmudul Hoque Mr. Arifur Rahma Protik Al-Haj Md. Motior Rahman Auditors M/S G Kibria & Co Chartered Accountants Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President Junior Assistant Vice President Senior Executive Officer Executive Officer Engr. Rezaul Karim Md. Rezaul Karim Ansari A. Tajul Islam Al-Haj Md. Md. M.
Officer (General) 1st Clearing House Return Clearing House Importer Applicant Advising Bank Issuing Bank Corresponding Bank Reimbursing Bank Negotiating Bank Exporter/Beneficiary .
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