An Internship Report

On
Financial Performance Analysis of Jamuna Bank

SUBMITTED TO:
Department of Business Administration
Sonargaon University (SU)
Green Road, Dhaka-1215

SUBMITTED BY:
Zannatul Ferdousi Alam Yameem
ID: BBA1801013034
Program: BBA
Major: Finance
Department of Business Administration
Faculty of Business studies
Sonargaon University (SU)
Dhaka-1215

i
 An Internship Report
On
Financial Performance Analysis of Jamuna Bank
Supervised to

MD. Shahbub Alam

Lecturer

Department of Business Administration

Sonargaon University (SU)

Submitted by

Zannatul Ferdousi Alam Yameem

ID: BBA1801013034

Program: BBA (Major in Finance)

Bachelor of Business Administration

Sonargaon University (SU)

Dhaka-1215

Submitted for the partial fulfillment of the degree of Bachelor of Business Administration

Date of submission: 05/09/2022

LETTER OF TRANSMITTAL

Date:

ii
To
Md. Shahbub Alam
Lecturer
Department of Business Administration
Sonargaon University (SU)
Dhaka-1215

Subject: Submission of the Project Report.

Dear Sir,
I have finished the Project Report that is required to be submitted as a circumstance of finishing
the B.B.A. Program and incomes my degree. "Financial Performance Analysis of Jamuna Bank
Ltd” is the title of my report.
It is based totally on my few months’ attachment on Jamuna Bank Ltd. I have written this file on
the foundation of the fabric gathered all through the Project term; I have written this document to
share my findings on Jamuna Bank Ltd.’s overall performance analysis. If you would be given
my record on the above-mentioned subject, it would be notably appreciated. I believe you will
discover the file to be satisfactory. I have put forth my quality efforts in the introduction of this
report, and I would truly recognize it if you should grant any remarks on it, especially about any
fundamental rectifications.

Sincerely Yours

…………..
Zannatul Ferdousi Alam Yameem
ID: BBA1801013034
Department of Business Administration
Sonargaon University (SU)

iii
 DECLARATION

I do hereby declare that this report entitled “Financial

Performance Analysis of Jamuna Bank Ltd, submitted by me to
Sonargaon University, for the degree of Bachelor of Business
Administration is an original work.

I also declare that the report has not been submitted earlier either
partly or wholly to any other University or Institution for any
Degree, Diploma, Associate-ship, Studentship, Fellowship and other
similar title or prizes.

………………………

Zannatul Ferdousi Alam Yameem

ID: BBA1801013034

Department of Business Administration

Sonargaon University

iv
 CERTIFICATE

This is to certify that the internship report titled “Financial Performance

Analysis of Jamuna Bank Ltd”, is prepared by Zannatul Ferdousi Alam
Yameem (BBA1801013034), under my supervision at Jamuna Bank Ltd from
01 October 2021 to 25 December 2021 for the fulfillment of BBA program
from Sonargaon University.

This report is approved and accepted in quality and form.

Supervisor

Md. MD Shahbub Alam

Lecturer

Department of Business Administration

Sonargaon University

v
 ACKNOWEDGEMENT

At the beginning I am very much grateful to almighty for giving me strength and
opportunity and sound mind to complete the internship report. First of all I would
like to thank to my Internship Supervisor, Md. Shahabub Alam Assistant Professor
Sonargaon University, for guiding me and encouraging me to work on this exciting
topic for my internship report. I strongly believe that, these will assist me a lot to
make me more professional and building my future professional career. He had
been very helpful through the internship program and suggests all sources for
necessary information to make this report. This internship report might never have
been completed without the necessary particle knowledge, assistance of many
books, articles, websites and primary data. It enhanced my practical knowledge in
corporate culture. Finally, my heartiest thanks go to others who were involved and
helped directly and indirectly to prepare this report.

Without them all these would not have been made possible.

Zannatul Ferdousi Alam

vi
 Executive Summary

In our country, the banking sector is modernizing and expanding its activities day by day. The
banking system is considered the most effective, faster, easier, and wider system in the
contributing economy. Jamuna Bank LTD is a third-generation private bank in Bangladesh. The
bank was introduced as a private commercial bank on 29 September 1999.

The bank operates its financial activities through its Head Office situated at Gulshan, Dhaka, and
114 branches. Modern banking activities have been separated into four specific parts.

1-General Banking segment, 2- Cash segment, 3- Loans & Advances Segment, and 4-
Foreign Trade segment.

In this report, my focus will be concentrated mainly on the General Banking Section of a urban
area. General Banking is the primary step of all banking operations. This department provides
day-to-day services to the customers. Jamuna Bank Centre Banani Branch is one of the most
profitable urban branches of Jamuna bank. It became the best urban branch in 2019, also one
of the busiest branches of all.

In this branch, various activities are carried out by the general banking department, for example,-
the opening of a fresh account, issuing of checkbooks, closing of an account, restricted payment
& dishonoring of a cheque, fund transfer, bills collection, cash payment, and cash receipt, issue
payment orders, etc. In this report, I have tried to demonstrate and analyze the general banking
activities of Banani Branch.

I have also tried to analyze the financial performance of Jamuna Bank Ltd. According to
financial performance analysis, it can be noted that Jamuna Bank Ltd. is a profitable bank as the
profit of this bank is increasing gradually. This report has been prepared as the degree
prerequisites of the BBA program at the Department of Finance and Banking, Sonargaon
University.

The origin of this report will be the first described issue. Also Objectives, methods, sources,
scopes, and limitations of the report. The second chapter provides the overview and products and
services of Jamuna bank. Chapter three explains the general banking activities of Jamuna bank
and Chapter four describes the performance analysis of Jamuna Bank. Chapter five will give a
clear understanding of the job experience over the three-month-long internship period and,
Chapter six contains findings, recommendations, and the overall conclusion.

vii
Contents
S.L. PARTICULARS PAGE

Letter of iii
Transmittal

Student iv
Declaration

Certificate of v
Supervisor

Acknowledgemen vi
t

Executive vii
Summary

Chapter 1 Background of the Study 2-5

Introduction 2
Objectives of the report 3
Methodology of the study 3

Data Collection Method 3

Secondary Data & Data Analysis Method 4

Potential Scope of the report. & Limitations of the 4,5

study

Chapter 2 Organizational Overview 6-11

About Jamuna Bank 6

Goals And Objectives Of Jamuna Bank 6,7
Vision Of Jamuna Bank 7,8

viii
 Mission Of Jamuna Bank 8
CSR of Jamuna Bank 8
Banking Products And Services 9-11

Chapter 3 General Banking Activities of Jamuna 12-31

Bank Ltd.
Introduction 12
Front Desk Section 13
Cash Section
13

Accounts Section 14-28

Other Banking Services that provided by General 28-31

Banking Section are:

Chapter 4 Financial Analysis: 32-40

Ratio Analysis

Liquidity Ratio
32
Debt Management Ratios
32
Profitability Ratios
33
Financial Performance Analysis Of 34-36
Jamuna Bank Ltd.
36-40

Chapter 5 Recommendations & Conclusion 41-43

Recommendations 41
Conclusion 42

ix
Reference 43

x
 CHAPTER-01
Background of the Study

Introduction
A bank is a financial institution that collects deposits from the public and creates a
credit for economic distribution. It is a very primitive institution and service
industry that is contributing to the development of any economy within a country
and is treated as the most meaningful effective division in the economy. Economic
history shows that development has started everywhere with the banking system
and its contribution to the financial development of a country is the highest in the
initial stage. Modern banking is the new sense that provides a potential trigger in
this system.

The bank has a vital role in the economy that it is providing a means of payment
and mobilizing resources. This is the reason banks are considering the most
important influential matter in the economy. There are different types of banks,
commercial banks, investment banks, Islamic banks, cooperative banks, etc.

Jamuna Bank is a commercial private bank whose main objective is the

mobilization of funds from surplus unit to deficit unit. The bank creates money by
accepting deposits and the provision of loans. These characteristics feature sets
Bank apart from other financial institutions. I have done my internship in the
general banking department in Banani Branch. This helps me to know more about
the banking sector and the way of urban banking as well.

1
Objectives of the report
The primary and general objective of the report is to prepare and submit a report
on the topic “General Banking Activities’’ of Jamuna Bank Ltd. Jamuna Bank
Centre Banani Branch.

There are some other objectives:

To gain expand knowledge over the general banking activities of the bank.
Getting an idea about the products and services offered by general banking
Department.
To give focus on the Financial Performance of the bank.
The way of doing banking activities in the urban sector.

Methodology of the study

The form of this report is descriptive. To focus and gather information over
different banking operations, I had observed the operations and worked in the
cross-section of the branch. The data for the overview of the bank part is collected
from the website and annual report of the bank. The analysis part is achieved from
data that have been collected from different statements and the annual report of the
bank.

Data Collection Method

This report is prepared based on information collected from primary and secondary
sources. Primary and secondary sources have been examined for preparing this
report, but the majority of information was collected from Secondary Sources as
there have some confidential issues in sharing information for any institution.

2
Sources of Data
Secondary data
Data from the Jamuna bank website.
Annual reports observation of Jamuna Bank Ltd.
Different journals and magazines regarding Jamuna Bank Ltd.
Various publications on banking operations.
Study on financial statements of the bank

Data Analysis Method:

Qualitative and Quantitative both research is conducted to analysis secondary data.
The data are presented in this report by using the Microsoft Word and Microsoft
Excel.

Potential Scope of the Report

The scope of the study is to have an idea about Financial Performance Analysis of
Jamuna bank Ltd. The report starts with the outline of the organization in focus,
presenting the mission and vision of organization. It accompanied by the global
perspective and look into the future. The researcher provides information about the
strengths, weakness, opportunities and threats of the organization. Those who
looking for the information about Financial Performance Analysis of Jamuna bank
Ltd. they might get help from this report. The study explores the present market
scenario of Exim Bank and future market growth prospects in Bangladesh.

Limitations of the study

1. Legal obligation: Due to some legal obligation and business secrecy the bank
was reluctant to provide some sensitive data. Thus, this study limits only on the
3
available published data and certain degree of formal and informal interview and
limited survey.

2. Extensive Nature: Although the particular study is extensive in nature, hard

effort was given to make the study Worthwhile and meaningful even then there
exists some limitation.

3. Lack of time: Time frame for this thesis paper was very much limited so within
this short span of time it is very difficult to be familiar with all the activities of the
bank.

4. Restricted Information: There were various types of information that the bank
cannot disclose due to the security and other corporate obligations.

5. Due to COVID-19: Whole country gone through with some restriction due to
COVID-19 which hampers the free movement within the bank for collection of
primary data. This is one of the biggest limitations to make this report.

4
 Chapter-02
Organizational Overview

About Jamuna Bank

Jamuna Bank Limited was incorporated as a Public Limited Company in 1999,

under the Companies Act 1994 with an Authorized Share Capital of BDT
3,800,000,000 divided into 38,000,000 ordinary shares of BDT 100 each. At
present, the Authorized Share Capital of the company is BDT 10,000,000,000
divided into 1,000,000,000 ordinary shares of BDT10 each.

Jamuna Bank also got the Certificate for Commencement of Business on the same
day and was granted a license on October 05, 1999, by Bangladesh Bank under the
Banking Companies Act 1991 and started its banking operation on October 24,
1999. Jamuna Bank Limited, together with its subsidiaries, administers several
commercial banking services in Bangladesh. It has 114 Branches and the Head
Office is in Gulshan – 1.Jamuna Bank has memberships with IBB, BAB,
BAFEDA, BIBM, BAPLC, MCCI, ICCB, DSE, DCCI, FBCCI, AmCham, and
PDBL.

Goals and Objectives of Jamuna Bank

The prime objective of the Jamuna Bank Limited (Jamuna bank) is to offer an
interest-free or less interest banking system in the financial market. Apart from
that, the bank started its operation in the country intending to realize the following
objectives:

 To ensure the inflow of funds at the combination of the least possible cost

5
  To maintain a discreet credit policy

 To enhance versatility and diversification through the penetration of new

market segments, thereby fulfillment unmet needs

 To extend financial assistance to the citizens, living at dispersed locations by

expanding the network of branches

 To practice stronger IT-driven initiatives that will meet the challenges and
requirements of the banks and their clients

 To improve administrative and organizational structures to prepare the

platform for the best practices of corporate government

 To enrich the banking sector with improved awareness of corporate social

Responsibility

 Extensive career opportunities thought has been introducing by creating a

competitive payment system and a flexible environment.

 To set a partnership relationship with customers and for eliminating the idea
of the debtor-creditor relationship of traditional banks.

 Welfare-oriented banking system development also will be the target.

Vision and Mission of Jamuna Bank

Vision
Philosophy is considered to set the vision of Jamuna Bank:

One of the best performing and committed banks in Bangladesh.

The bank of choice

6
 A professionally world-class bank

Mission
Jamuna Bank aspires to become the most admired financial institution in the
country. It introduces a dynamic, innovative, and client-focused company that
offers an array of products and services in the search for excellence and to create
an impressive economic value.

CSR of Jamuna Bank

Jamuna Bank is also involved in CSR activities which include the education sector
of the needy people in the urban parts of Bangladesh. They also focus on the health
of the nutrition of the people and helping any humanitarian and disaster crisis
relief, culture, sports, etc. in Bangladesh. There are several activities that Jamuna
Bank has provided for example donation of blankets in North Bengal, blood
donation, sponsored South Asian Games Dhaka, donated to Prime Minister’s relief
camp, etc.

Banking Products and Services

Jamuna Bank provides the following products and
services:
SME Banking
Wholesale Banking
Privilege Banking
NRB Banking
Treasury Options
Retail Banking

7
SME Banking
Jamuna Bank started its Small and Medium Enterprise banking in 2017 and is
considered as one of the leading banks in the country. They offer SME services
which include SME Loan Products and SME Deposit Products. SME Loan
Products are Jamuna Bank Small Business Loan (SBL), Jamuna Bank Digoon,
Bhagyobati, Microfinance, Krishi, Mousumi, Green Energy Loan, Gunabati,
Krishijat, Light Engineering, IT Genius, and Youth Line. SME Deposit Products
are Jamuna Bank Probaho and Jamuna Bank Buniad.

Wholesale Banking
Jamuna Bank works on term finance, working capital finance, and cash
management unit in wholesale banking. Term finance services include Project
Finance, Financer for Importing Capital Machinery, Lease Finance, House
Building Finance, Term Loan to NBFI, and Term Lending. Working Capital
Finance includes Secured Overdraft, Cash Credit, and Cash against Document,
Short Term Loan, Loan General, and Time Loan. Cash Management Unit includes
Jamuna Bank Nationwide Collection Service; Web-based Banking Services,
Payments Solutions, Capital Market Services, High-Value Account Services,
Motor Vehicle Fee Collection Solution, and Jamuna Bank Tuition Fees Collection
Service. They also provide Trade Finance Containing Back to Back L/C, Export
Bill Discounting, Secured Overdraft, and Packing Credit.

Privilege Banking
In 2010 Jamuna Bank started its Privilege Banking service to serve the lifestyle of
privileged banking customers. The privileges that the customers get are queue less
banking in a relaxed environment where customers are served by respective
dedicated relationship managers along with complimentary airport limousine
service, protocol from airport service, health-checkups supports at well-known
hospitals, discounts at exclusive privilege partner outlets for dining, shopping,
traveling, etc. which enable to live the life in the manner that their hearts desire.

8
Privileged Benefits:
Waiver of fees on various products and services
ATM withdrawal limit is higher
Internet Banking is free
Free debit card
locker service discount
Special debit card and Cheque Book
Composite statements
International Credit cards

NRB Banking
Jamuna Bank provides a wide range of deposit products in local currency for the
NRBs who living abroad and want to save their money to use in their future and
also to maintain their families. NRB Banking products are NRB Savings Account,
NRB Deposit Pension Scheme, and NRB Fixed Deposit Account.

Treasury Options
Jamuna Bank provides a refined solution that is supported by a large scale force
and a state of the art dealing room in Bangladesh. The additional services are also
there such as– Money Market, Corporate Sales, Foreign Exchange, etc.

9
Retail Banking
Jamuna Bank Retail Banking provides a wide range of simple different services for
their respective clients and customers. The services are Regular Savings, Current
Account, Ruby, Inspire, Brick by Brick, Millionaire Plan, Senior, Junior, Care,
Shanghai, Fixed Deposit, Double Saver, Education Plan, Monthly Benefit Plan,
Kotipati, and Jamuna Bank Gift Cheque.

Deposit Products
Regular savings
Jamuna Bank Brick by Brick
Jamuna Bank Senior
Jamuna Bank Care
Current Account
Fixed Deposit
Jamuna Bank Double Saver
Monthly Benefit Plan
Jamuna Bank Education Plan
Jamuna Bank Millionaire Plan
Jamuna Bank Kotipati
Jamuna Bank Gift Cheque

10
 Chapter-3
General Banking Activities of Jamuna
Bank Ltd

Introduction
Banking is considered as the financial intermediaries between borrowers and
lenders. This form is operated through taking money in various forms from the
surplus unit of the society and lending them to other parties who need that money
for various purposes. The theme of the general banking sector is to trigger this
form of money circulation. General banking is the primary level of all the works of
the banking sector. It provides day-to-day services, reserves deposits, meeting
customers' demand, honoring various cash information recruit funds, issue bank
draft and pay orders, and many more according to situational basis. Introducing
new product lines and special savings schemes are also prepared here to support
the banking system. General banking is mostly related to the demand management
of customer and forecasting the regular transactions. The urban segment is most
challenging in the context of people's understanding of different terms. The
corporate branch is mostly doing the administrational activities but the other
branches must engage with all the banking activities. In Jamuna Bank urban
section there are four segments, they are:

Front Desk Section

Cash Section
Accounts Section
Other Customer Service Section

Front Desk Section

11
The front desk section is the most important in the general banking department.
Front Desk provides various customer services like account opening, accepting the
deposit, the closing of an account, issuing checkbook, fund transfer, various
account services like changing address, phone number, etc.

Opening of Account:
Customers' interaction with the bank starts with the account opening system, and it
is the most sensitive to handle customers according to their demand. These terms
have two sides that are positive and negative. Positive is, a sound interaction with
the customer creates a strong relationship with the bank and can increase loyalty
towards the bank. Facilities that are not supportive of a customer cannot mobilize
funds and investment. The front desk account section has to offer many types of
accounts to the customer and each offer must elaborate to a customer for their
better understanding.

Current Account:
This account is generally for day to day transaction of business, opened by the
businessmen, government, and semi-government organizations. A businessman
can access his account anytime, anywhere with the regular current account in any
Jamuna Bank branch. There is no interest offered on the deposit money but
services related to this section have always been provided without any hesitation.

12
Opening of Account:
Customers' interaction with the bank starts with the account opening system, and it
is the most sensitive to handle customers according to their demand. These terms
have two sides that are positive and negative. Positive is, a sound interaction with
the customer creates a strong relationship with the bank and can increase loyalty
towards the bank. Facilities that are not supportive of a customer cannot mobilize
funds and investment. The front desk account section has to offer many types of
accounts to the customer and each offer must elaborate to a customer for their
better understanding.

Current Account:
This account is generally for day to day transaction of business, opened by the
businessmen, government, and semi-government organizations. A businessman
can access his account anytime, anywhere with the regular current account in any
Jamuna Bank branch. There is no interest offered on the deposit money but
services related to this section have always been provided without any hesitation.

Features and Benefits:

A wide network of branches
There are facilities of Internet Banking and SMS Banking
Cheque-book facility
Collect foreign remittance
Transfer of fund from one branch to another by Demand Draft /Telegraphic
Transfer
Online banking service (Communications).

Regular Savings Account:

13
Local customers open this type of account for savings purposes such as the
individual with his monthly salary, students, housewives, and others. This indicates
small-scale savers. Based on the deposited amount interest is offered here. Interest
on these accounts was calculated and accrued monthly and credited to the account
half-yearly. It is an easy-to-operate savings account that allows ones to issue
cheques, draw Demand Drafts and withdraw cash, check balances from home and
offices by using the internet banking facilities, and also can have notifications from
SMS banking services at the regular intervals.

Terms and Benefits:

A wide and established network of branches
THE largest ATM fleet of the country is provided here and access in this
process is also meaningful.
Convenient facilities are provided here to support customer for the
technological movement such as internet banking and SMS banking
Cheque-book facility and deposit locker facilities.
Foreign remittance is collected in both form T.C. & Taka drafts.
Transfer of fund from one branch to another by Demand Draft /Telegraphic
Transfer
A depositor may withdraw money from his / her account without any
restriction.
An introducer (who has a savings account with Jamuna Bank) must be
needed in the opening of anew savings account to introduce the account.

Fixed Deposit:
When a customer wants to extend term investment and wishes to earn higher
interest on their savings then they can invest their money in a fixed deposit
scheme. It is a deposit scheme which is payable at a fixed date. The interest rate on
the fixed deposit is the same according to a new ordinance. For three months, for 6
months, For 9 month’s interest rate is the same that is 6.00% and it will be the
same for 1-year and above 2 years. There are some special schemes offered by

14
Jamuna Bank Ltd which are also provided by the front desk department. I briefly
discussed these schemes here.

Jamuna Bank Brick by Brick

Brick by Brick means gradual savings after a specific time interval. It is a monthly
savings plan which has been constructed over the years and provides a lump sum
amount at maturity. It is a monthly deposit scheme. The savings periods can be 3,
5, 8, and 10 years and more. Monthly installments are taken here with the amount
of Tk. 250/=, 500/=, 1,000/=, 2,000/=, 5,000/=, and thereafter in multiples of
Tk.500. There are some terms and conditions that the customers have to meet to
open a Brick by Brick account.

Jamuna Bank Double Saver

This is the form of a time deposit scheme that offers a double deposit back in 6 and
7 months. The minimum amount of this scheme is BDT 50,000.00 and the
maximum has no limit. The rate of interest is 9.46% but there is a condition, if the
depositor wants to withdraw this amount before maturity he will not be given this
rate he will be paid in a regular interest rate that is 6%.

Monthly Benefit Plan

In this plan, a depositor is provided with monthly interest against the deposited
amount regularly. The tenure of this plan will be 1(one) year to 5(five) years and
the interest rate on this scheme is 8.40%. The customer has to deposit the
minimum amount of BDT 100,000.00 at the time of opening the account. Interest
will be paid on the same date on which the deposit is received. The customer may
avail loan up to 90% of the deposited amount.

15
Jamuna Bank Millionaire Plan
This plan makes a person a millionaire after a certain period. There is no restriction
in opening this account such as the government and the non-government person
can avail the benefit of this plan. The tenure of this plan is for 4/6/8/10/12/15/20
years. It gives a chance to open more than one account against one depositor. For
failure of 3 consecutive installment account will be closed automatically. If a
depositor wishes to withdraw his/her money before maturity then he/she will be
paid at a regular interest rate. Late fees will be deducted at a 2% rate and in case of
death account will be ceased. This account will also have to pay government taxes
as per rule.

Jamuna Bank Kotipati

It is a monthly deposit scheme that will make a client Kotipoti after a certain
period. The tenure of this scheme is 4/5/6/8/10/12/15 years. The interest rate for 4
to 6 years is 8.00% and for 8 years is 8.10% and above 10 years is 8.25%. And the
monthly installment is also varied according to years. Installment may be deposited
within the 20th of every month by cash/cheque or under the depositor’s instruction
from another deposit account. Late fees, rules, and other terms will be considered
as same as the millionaire plan. The customer may avail loan up to 90% of the
deposited amount.

Jamuna Bank Senior

It is the facilities for the senior citizen of a country keeping in mind their
requirements. This sector needs special attention and observations as they
contribute a lot to the growth of the economy and the banking sector.

Eligibility:
16
 Must hold the citizenship of Bangladesh
Age 60 and above

Features:
Free Debit Card for lifetime

Internet banking in free of cost o Attractive discount on locker charge o Free

checkbooks
Provide with daily basis interest calculation and monthly payment method
There is no limit for transactions
Online banking facility across Jamuna Bank branches and access to the
largest ATM network.

Jamuna Bank Care

Jamuna Bank also knew for its children friendly activities. A unique proposition of
Jamuna Bank is a savings product for children with special needs which is the
main motive of Jamuna Bank Care. This service minimizes the account opening
and management hassle for special needs children also the cost is lower for all the
maintenance and products. The interest rate on this deposit is 3.85% on any
amount.

Eligibility:
Any Bangladeshi with a photo ID document as applicable for a savings account
bears the eligibility. A legal guardian is needed to operate this account with all the
assistance if the case is no capability of the mind and in case of sign several papers.

Features:
Interest is calculated on monthly basis on average balance.
Interest is automatically credited to minors' accounts every month.
17
 The account maintenance fee is free.
The First 3 checkbooks are free (10 pages per book)

Jamuna Bank Gift Cheque

In this system, the gifts are growing with time. Gift check users hold a great
opportunity to choose their gift as their wish at any time. Here purchaser of the gift
check saves time and the receiver has the option to buy as their requirements. It
also has the feature of being converted into money anytime from any branch of
their own country.

Benefits
Jamuna Bank account holders can purchase Jamuna Bank Gift Cheque at any time

No document is required for purchase of gift Cheque

No service charge is applicable
The check can in cash from any branch of Bangladesh.

Formalities for Opening an Account:

For opening the account there are need some requirements which I have learned in
my internship program. The first-hand requirements are:

Application on the prescribed form

Introduction of the applicant
Two copies of passport size recent photograph with attested by the
introducer
Photocopy of NID or passport or driving license.

18
At first Front, Desk employee wants to know whether the customer has an
introducer to open the account or not? If yes then give him/her printed Account
Opening Form along with Specimen Signature Card, Customer Transaction Profile
Form, and Information form on Money Laundering (Positive Pay). After that,
request the customer to fill up the form duly and submit the form with the required
documents.

The steps that taken at the time of Opening an

Account which I have learned are given below:
Some formalities have to be maintained for opening an account. That is:

Account opening activities start with the procedure of filling the account
opening form. The forms contain general information about the account
holder and the nominee. Information about, customer and bank branch name,
type of account, address, NID information, E-TIN certificate information,
date of birth, nationality, occupation, profession, income, and other things. A
form KYC is attached to this form by Bangladesh Bank to prevent money
laundering. It helps to assess customer financial movement. If the
information of KYC does not match with customers' information Bank will
report to Bangladesh Bank to pursue legal action.
Then the account holder has to signature on the specimen signature card
which has to be attested by the introducer. Moreover, two copies of the
passport size photograph also have to be attested by the introducer.

19
The prospective customer should be properly
introduced by the followings:
He has to be the present customer of the Bank.
A local person who will be well known by the Manager or authorized
officer. o The authorized officers perform the responsibility of examining
the documents provided by the customer or the introducer.
The customer then deposits the ‘Initial Deposit’ by filling up a deposit slip
and then gets a checkbook and pay-in-slip.
All the activities are done here and an account number has been given as
proof of the opened account.

Jamuna Bank Centre Banani Branch maintains all of its accounts on the computer;
they also follow the register of all accounts before opening accounts. After
depositing the initial deposit, the branch records it in the system. Then it distributes
all relevant papers to the respective department.

Documents required opening an account:

Personal Account (Individual / Joint):
Three copies of passport size photo (attested by Introducer)
One copy of passport size photo of Nominee (attested by Applicant)
Photocopy of National ID card / Passport / Driving License of the applicant
and nominee as well.
Proprietorship Business Account
Three copies of passport size photo (attested by Introducer)
National ID card / Passport / Driving License of the applicant.
Trade License o TIN and VAT Certificate

20
Partnership Business Account:
One copy of the passport size photo of each partner (attested by Introducer)
o One copy of passport size photo of each Signatories
National ID card / Passport / Driving License / Commissioner /
ChairmanCertificate (any two) of each partner
Trade License
Partnership Deed (must be registered)
TIN and VAT Certificate in the name of Business
Board Resolution (Original Copy)
Private Ltd. Company Business Account
One copy of the passport size photo of each director (attested by Introducer)
One copy of the passport size photo of each signatory (attested by
Introducer)
National ID card / Passport / Driving License / Commissioner / Chairman
Certificate (any two) of each Shareholders
Trade License
Memorandum of association
Board Resolution (Original Copy)
TIN and VAT Certificate in the name of Business

Public Ltd. Company Business Account:

One copy of the passport size photo of each director (attested by Introducer)
One copy of the passport size photo of each signatory (attested by
Introducer)
National ID card / Passport / Driving License of each Shareholder
Trade License
Memorandum of association
Articles of Association o Board Resolution (Original Copy)
TIN and VAT Certificate in the name of Business
Joint Venture Company Business Account:
One copy of the passport size photo of each director (attested by Introducer)

21
 One copy of the passport size photo of each signatory (attested by
Introducer)
National ID card / Passport / Driving License of each Shareholder
Trade License photocopy of each individual
Joint Venture Deed (must be registered)
Board Resolution (Original Copy)

Issuance of Cheque book

After opening an account, the front desk employee provides a checkbook to the
customers so that he/she can withdraw money whenever they needed. A checkbook
contains 10, 25, 50, or more pages according to the types of accounts. The
customer has to fill up a requisition slip for a checkbook where they have to give
an account number, address, and signature. Then a new checkbook will be issued.
In Jamuna Bank Centre Corporate Branch they maintain a checkbook register
where they enter the name, account number of the client, and checkbook serial
number.

Issuance of Deposit Slip

If a customer wants to deposit money, he/she has to collect a Deposit Slip from the
front desk of the bank. There is no need for requisition for a deposit slip. Then they
have to fill up the deposit slip with the account number, date, and amount of the
money they want to deposit and have to give a signature.

Transfer of Fund:
Front desk employees also do the task of transfer of funds. If a customer wants to
transfer funds from his/her account to another account, he/she needs to fill up a
fund transfer form which is called an additional service form. The customer has to
provide the account number from which he/she wants to transfer the fund and the
account number to which he/she wants to transfer the fund.
22
Account Services
Front desk employees provide various types of services after opening an account
which is called account services. These services are changing of address, phone
number, email id, etc. If a customer wants to change his/her address, mobile
number, email, etc. he/she has to fill up the account service form and submit to the
front desk.

Closing of Account
Customer can close their running account any time, for that some formalities have
to be fulfilled. Account closing forms will be provided by the bank. They should
be asked to draw the final Cheque for the amount standing to the credit of his/her
account. Then the bank will be charged closing fees and will be debited to the
closing account.

A bank employee can also close the account of his customer or stop the
operation of the account under the following considerable circumstances:

Expire of the customer.

Customer’s insanity and insolvency condition.
Fraud forgery or counterfeit allegation.
In a condition of Payment of the Cheque stopped
A banker can stop the payment of a Cheque of his customer under the
following considerable circumstances.
Order from the court.
The officer/employee will see the condition of the account and verify
everything.

Cash Section
23
The cash department is the most sensible and vital section of the activities of
banking. This department handles all the cash transactions. It starts with the cash in
the vault. Each day opening cash has been transferring to the cash officer from the
cash vault. The net figure of the cash receipts and payments are added to the
opening cash balance and this figure is called the closing balance. Again this
closing balance is added to the vault by the end of the day. This cash sector is
considered as the liquidity of the bank. Greater denotes higher liquidity. This all
activities are susceptible as it has to maintain most security and customer believes.
The transaction which involves cash is called Cash Transaction, which involves:

Cash Payment
Cash Receipt

Process of Cash Payment:

o The cheque leaf is monitored with the most concern. Branch Seal, Date, Total
Amount to be withdrawn (in figure and word), and Signature of the Drawer are
covered in the cheque leaf. It is also checked whether the ‘bearer’ word is crossed
away or the cheque is in the name of any establishment. From cheque holders, a
receiver signature is also taken on the back of the cheque and the denominations of
notes are also written there.

Signature is checked if it matched with the pre-provide sign or not. Then

give the confirmation seal.
The account is debited and the Cheque is canceled by the officer. Then it is
posted in the computer system and the transaction number and posting stamp
are attached to the Cheque.
Cash Payment Officer receives the Cheque.
A 'Cash Paid' stamp is attached to the Cheque, and then this entry is taken in
the Cash Payment Register.
The entry is posted in the debit drawer account and notes the transaction
number on the top of the Cheque.

24
Receipt Procedure Cash:
First, it is checked whether the deposit slip is properly filled up with every
detail needed (e.g. account number, the amount in figure and word,
depositor’s sign).
The cash receiving Officer takes the cash, counts them twice, and matches
the deposit slip, and also writes down the value of notes at the back of the
cheque.
The cash receiving officer also writes down the amount in figure and words
on the front side of the Cheque.
A signature of the cash receiving Officer and 'Cash Received' stamp is
attached on the front side of the Cheque. Then It is added in the Record
Book and a Scroll Number is written in the Cheque.
The system credits and places the deposit slip in the concerned account.
Depositors get a counter folio as a receipt. The system balances the cash by
getting one combined cash debit voucher posting.

Accounts Section:
Under the Computerized Banking System, recording all Monetary Exchange of the
Branch and assuring precision is the main job of this sector. Routine of daily tasks
of the Accounts Department are as follows:

Recording the transactions in the cashbook.

Preparing the daily position of the branch comprising of Deposit and Cash.
Making payment of all the expenses of the Branch.
Recording inter-branch Fund Transfer and providing accounting treatment in
this regard.
Recording of the vouchers in the Voucher Register.
Packing of the correct vouchers according to the Debit Voucher and Credit
Voucher. The periodic tasks of this department are:
Preparing the monthly salary statements for the employee.
Publishing the basic data of the Branch.

25
 Preparing the weekly position for the branch comprising of the breakup of
sector-wise Deposit, Credit, etc.
Preparing the budget for the branch by fixing the target regarding Profit and
deposit to take the necessary steps to generate and mobilize deposit.

Money Transaction:
Customer needs to transfer money from one account to another or place. This
service is crucial to the customer and it is a perception of banking service. The
payment system is pursued by the country's method. The payment method can be
payment order, demand draft, etc.

Clearing
Receiving all kinds of Cheque in favor of the client for clearing is the main activity
of this department. By this system, banks collect the money of their customer from
the other bank through a clearinghouse.

Member of Clearing House:

Jamuna Bank Limited is a member of the clearinghouse. According to Article
37(2) of Bangladesh Bank Order, 1972, the banks which are the member of the
clearinghouse are called as Scheduled Banks. So, Jamuna Bank Ltd is a scheduled
bank. The scheduled banks clear the Cheque drawn upon one another through the
clearinghouse.

Types of Clearing: There are two types of clearing. These are given below:

Outward Clearing: When the branches of a bank send cheques of its clients
drawn on the other Banks within the local clearing zone for collection of
money through Clearing House, it is Outward Clearing.

26
 Inward Clearing: When a bank receives Cheque drawn on them from other
banks in the Clearing House, it is Inward Clearing.

Other Banking Services that provided by General

Banking Section are:

Online Banking Service

Jamuna Bank provides online banking facilities to its customers. This service
allows the customer to transact any amount from the home or preferable places to
any branches. Almost all the transaction has the facilities of internet banking.

Any account holder having an account with the bank can avail of this service.

The facilities available one can enjoy are:

Summary of accounts and access account statements

Order checkbook(s)
Transfer funds to any MLB account
Set up payees (within Jamuna Bank), to whom one transfers funds regularly
o View credit card details and pay any Jamuna Bank credit card bill
Pay utility bills
Mobile Top-up.

SMS Banking
Jamuna Bank SMS Banking helps the account holder to send and receive textual
information anywhere 7 days a week and 24 hours a day. It allows the account
holder to access information as well as receives transaction alerts on his/her
account by using his/her mobile phone.

Facilities available at present

Access the account from anywhere in the world through a mobile phone.
Inquiry of balance without visiting the bank.

27
 Ability to receive a mini statement of the last 5 transactions.
Transaction Alert lets the account holder get informed whenever there is a
cash withdrawal or credited transaction on his/her account.

Payment Order Service

Jamuna Bank Centre Corporate Branch provides Pay Order services. If a customer
wants to give any amount to anyone for any purpose. This is a safer transaction
than money. Receiver the encase this as his need and there is no option for
dishonor. The client has to deposit money before doing the PO. The commission of
the PO up to 10,000 is Tk. 25, 10,001-100,000 is Tk. 50 and 100,001-500,000 are
Tk. 100.

Locker Services
Jamuna Bank Centre Corporate Branch provides locker services to their customers.
Customers can rent a locker for one year. Every year they have to pay a fee. They
can keep any documents, ornaments, and valuable things in the locker. One key is
given to the clients. There are three types of a locker at Jamuna bank: small,
medium, and big. The fee for this locker is Taka 1500, 2000, and 2500.

Jamuna bank Tele Banking Services

Jamuna Bank Centre Corporate Branch also provides Tele Banking Services for its
customers. I used to see that the bank officials always receive the call on the
telephone and provide the necessary information what the customer wants to know.
The customer gets the access through phone on a 24/7 basis. The customer is
provided with a unique identification number so it is considered as the security
services.

Jamuna bank Card Services

28
Credit Card Service
There are various types of credit cards in Jamuna Bank. These are Jamuna Bank
Visa Classic Credit Card, Jamuna Bank Visa Gold Local Credit Card, Jamuna
Bank Visa Platinum Credit Card, Jamuna Bank Classic Master Credit Card,
Jamuna Bank Gold Master Credit Card, Jamuna Bank Titanium Master Credit
Card, Jamuna Bank World Master Credit Card, etc.

Facilities Available:
50% Cash Advance facility.
Useable at all ATMs bearing the Visa logo.
5000 outlets for shopping in Bangladesh.
Buy now pays later facility.
Up to 45 Days Interest-free period.

Debit Card Services

Jamuna Bank debit cards are offered to every savings, current, and SND account
holder of the Bank. These Debit cards can be used in the Visa/Master Card enabled
POS machines across the country. This electron Card can be used at any Dutch-
Bangla Bank’s ATM all over the country.

Available Facilities are:

 No fees have to provide for the first year
 No transaction fees on POS & DBBL ATM's.
 There are no time bindings for cash withdrawal.
 Physical appearance is not necessary for cash withdrawals.
 There are 5000 outlets for shopping in Bangladesh

29
 CHAPTER-4
Financial Performance Analysis Of
Jamuna Bank Ltd.

Financial Analysis:
It is the process of evaluation of business and all the activities. It helps to measure
financial performance and suitability. Analysis can perform internally or
externally. The internal analysis helps to make management decisions for the
future and external helps to choose the shareholder or investment decision. The
intrinsic value of security and technical analysis also conduct here for performance
measurement.

Ratio Analysis
Ratios are useful in determining the firm's performance and financial situation.
Ratio analysis was also helpful in searching for trends and business conditions. It
compares performance and conditions with similar industries and businesses. It is
like a diagnostic tool that detects problems and areas of opportunities that can be
managed with expertise. It also essential in the evaluation of the strength and
weaknesses of the company. It measures a companies performance against the
historical number. Generally, ratios are used in a combined process that means it
always associate with other ratios. The collection of a good idea over ratio analysis
gives a comprehensive view of the company (Tracy, 2012).

By knowing this information, management can take the necessary steps to organize
their goal. In the report, I have calculated some ratios and tried to analyze the
performance of Jamuna Bank Ltd. according to these ratios:
 Liquidity ratios
 Debt management ratios
 Profitability ratios

Liquidity ratio

30
These ratios show the relationship of a firm’s cash and other current assets to its
current liabilities. One ratio is discussed under Liquidity ratios.

Current ratio
It is determined as the liquidity ratio that measures companies' liabilities for the
payment of its current or short term obligations. It can maximize the current asset
for satisfying the current debt of the company. The asset is mostly in the position
of encasement. Sometimes it calls the working capital. Also, it has a lacking that is
it cannot be used in terms of broad group or industry.

Current Ratio=Current Assets/Current Liabilities

2015 136439.79 47803.26 2.85

2016 152514.44 58361.54 2.61

2017 187508.12 72833.15 2.57

2018 216071.80 76537.91 2.82

2019 231473.81 82425.73 2.81

31
Debt management ratios
Debt management ratios reveal 1) the extent to which the firm is financed with
debt and 2) its likelihood of defaulting on its debt obligations. These ratios
include:

Debt to equity ratio:

This ratio is used for measuring companies' financial leverage. It is mostly used in
corporate finance calculations. The ratio is gained by dividing companies' total
debt by its total equity. This information is found in the balance sheet of the
company. This ratio indicates the extent to which the company finances its
operation through debt or fully owned funds.

Debt to equity ratio = Total Debt / Total equity

Year Total debit Total equity TD/TE

2015 136616.9 8959.8 15.25

2016 154696.7 9783.7 15.81

2017 189991.84 11761.5 16.15

2018 209165.94 13278.83 15.75

2019 230230.46 14942.19 15.41

32
Total debt to total Asset Ratio:
The debt to total assets ratio is an indicator of a company's financial leverage. It
shows the percentage of the company's total assets that were financed by
creditors. In another sense, it depicts a relation between the total amount of
liabilities and the total amount of the assets that are gained by the device.

Debt to total asset ratio: Total Debt/Total Asset

2015 136616.19 145576.78 0.938

2016 154696.7 164480.42 0.941

2017 189991.81 201277.52 0.944

2018 209165.94 222444.90 0.940

2019 230230.46 245172.78 0.939

33
Profitability ratios
Profitability means the net result of several policies and decisions. This ratio
indicates the accumulated policies or decisions such as the combined effect of
liquidity, asset management, and debt on operating results.

Return on Asset: Business is always trying to make efforts on how to put its asset
into work in a most effective manner. ROA is the test of capital utilization. That
means how much profit a business made on the total capital used to get that
profit. It is considered with before interest and income tax. This ratio has been
used for comparing with the interest rate paid on the company’s debt.

Return on Total Assets (ROA) = Net income available to total common

shareholders / Total assets

2015 1364.17 145576.78 0.94%

2016 1403.78 164480.42 0.85%

2017 1980.33 201277.52 0.98%

34
 2018 1734.45 222444.90 0.78%

2019 1801.14 245172.78 0.73%

Return on Equity: It measures the amount of net income that is earned by

utilizing per dollar of total common equity. Is this process shareholders gain can
be measured from his stated equity?

Return on Equity (ROE) = Net income available to common shareholders / Total

common equity

2015 1364.17 8959.8 15.2%

35
 2016 1403.78 9783.7 14.3%

2017 1980.33 11761.83 16.8%

2018 1734.45 13278.83 13.1%

2019 1801.14 14942.19 12.1%

Net profit margin ratio: The profitability ratio denotes the percentage of profit
for the operation of a business. It is the system where business operating
expenses, interest, taxes, and preferred stock dividend from revenue. are
deducted before counting the profit.

Net profit margin ratio= Net income after tax/Total operating revenue

2015 1364.17 8959.8 15.2%

36
 2016 1403.78 9783.7 14.3%

2017 1980.33 11761.83 16.8%

2018 1734.45 13278.83 13.1%

2019 1801.14 14942.19 12.1%

Findings on Financial Performance:

Liquidity Ratio

The current ratio is decreasing throughout the years. In 2017 the ratio was 2.58
wherein in 2013 it was 3.1. It is in a decreasing trend because the liabilities are
increasing comparatively than the assets.

Debt Management Ratio:

37
From the year 2013 to 2015 there were notices of an unstable situation in debt to
equity ratio. The debt to equity capital ratio has decreased from 17.3 in 2013 to
15.24 in 2015 but it has increased in 2017 which was 16.25. It means that their
liability is increasing at a higher rate than their equity capital from 2013 to 2015
and 2016. But it increases the form year 2016 to 2017.

Debt to total asset ratio analysis of Jamuna bank is in a good position as it did not
fluctuate much. The average ratio over the five years is 0.94

Profitability Ratio:

Return on Asset ratio has been increased from 0.58% in 2013 to 0.94% in 2015
and in 2017 it was almost the same. Return on equity has been also increased
over the five years. It was increased from 10.54% in 2013 to 16.40% in 2017 which
is very good for the shareholders and the bank as well. And the net profit margin
of Jamuna bank has been also increased. It has been increased from 13.58% in
2013 to 23.76% in 2017 which indicates that Jamuna Bank is a profitable bank.

38
 Chapter-5
Recommendations and Conclusion

Recommendations
There are few recommendations provided below for the previously mentioned
problems:

1. As the current ratio of Jamuna Bank Ltd. was increasing year to year. So, it
should try to more increase this ratio by paying off current liabilities, sell off
unproductive assets and increase current assets by raising shareholder’s fund etc.

2. As we have already seen that a huge percentage of the company’s financing

asset is from debt. But the risk of the company is increasing as it is following
upwards trend. So they should take some step to decreasing debt.

3. Their cost to income ratio has a downwards trend which is a good sign. So, they
should continue what they do to keep profitability.

4. Jamuna Bank Ltd.’s total asset turnover had an increasing trend which means
they were efficiently using their assets to generate income. So, they should follow
what they were doing.

5. Jamuna Bank Ltd.’s operating profit margin trend already upward to continue
this process they should increasing sales to achieve cost-effectiveness through
economies of scale and lowering production costs while at the same time bringing
in extra revenue.

6. The return on asset has a random trend which is not good so to increasing
revenue, reducing expenses and reducing assets cost.

7. The return on equity ratio is following downward trend which is not good, the
management should work hard to increase the return linked with equity by

39
increasing profit margins, using more financial leverage, improving asset turnover
and distributing idle cash etc.

Conclusions
Jamuna Bank Ltd is serving an essential role in the financing of the people of
Bangladesh. In Bangladesh, Jamuna bank is known as a very dependable and good
bank, and the increasing number of its clients shows that it’s increasing
acceptance among its customers. Jamuna Bank is trying hard in their performance
in financial condition. Jamuna Bank is rapidly increasing its total number of clients
and account holders, and currently, they are focusing on their level of customer
satisfaction. They want to prevent the loss of customers to numerous competing
banks. Jamuna Bank should increase its number of branches and ATM booths
more to serve even more people around the country. It has increased my
knowledge that I have learned from University more accurately. Jamuna Bank is
much more structured than many banks in Bangladesh and is always looking for
improvement. With time, they can succeed in becoming the country’s top banks
and everyone’s “BANK of Choice.

40
 Reference

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CAIIB, I. I. (2018). Corporate Banking. Macmillan.

Choudhry, M. (2018). An Introduction to Banking, 2ed: Principles, Strategy, and

Risk Management. Wiley.

Claudia Girardone, B. C. (2015). Introduction to Banking.Pearson.

Communications, M. G. (n.d.). Retrieved from www.jamunabank.com:

https://www.jamunabank.com/retail/deposit-products/monthly-benefit-plan/

Sinha, N. (2012). Money Banking And Finance.BSC Publication.

Stephen A. Ross, a. R. (2017). Corporate Finance. McGraw Hill Education.

Tracy, A. (2012). Ratio Analysis Fundamentals.Bidi Capital Pty Ltd; 2nd Edition.

Yunus, M. (2013). Banker To The Poor: Micro-Lending and the Battle Against
World Poverty. PublicAffairs.

41