AN ANALYSIS ON MANAGEMENT PRACTICE OF

JAMUNA BANK

Submitted To – TASNIM TARANNUM (TNN)

Department: MANAGEMENT

Office room: NAC 849

Class time & Location: ST 4:20-5.50PM NAC304

Course code: MGT 212

Section: 07

Course: Organizational Management

Semester: Summer2022

Submitted By: Group-A

NAME STUDENT ID
MD. ABU DARDA 2221486630
NAIM UDDIN AHMED 2221586030
RAIYAN IBNA REZUAN 2221535630
AFSANA AKTER 2121076630
TAHAZUL KARIM 2222166630

DATE OF SUBISSION – 24th August 2022

1|Page
 1. EXECUTIVE SUMMARY: -
A banking organization registered under the Companies Act of 1994 is Jamuna Bank Limited
(JBL). Its headquarters are located in Bangladesh at 3, Dilkusha, C/A, Chini Shilpa Bhavan (2nd,
3rd, & 8th floors), Dhaka 1000. This bank's operations commenced on June 3rd, 2001. A group
of successful local businessmen created Jamuna Bank Ltd., the only new generation private
commercial bank with a Bengali name, with the goal of building a model banking institution
with something unique to offer the valued clients. They had a paid-up capital of approx. Tk.
1,072,500, a share premium of approx. Tk. 90,800,000, a statutory reserve of Tk.
300,667,430,00, and profits of approx. Tk. 154,504,076 as of June 30, 2007. This report has been
prepared critically to analyze the organization’s current situation using appropriate models and
techniques, recommend changes to enhance organizational effectiveness and how these changes
could be managed, and critically evaluate the manager’s skills and ability to contribute to the
effectiveness of an organization.

2|Page
 Name Page

Introduction 4

Brief overview of the organization 5

Company organogram 7

Organization’s culture 9

Situational analysis 10

SWOT analysis 13

Strategies 15

Management actions 17

Recommendations 18

Conclusion 19

Reference: 20

TABLE OF CONTENT: -

3|Page
 2. INTRODUCTION:

With a focus on equitable growth through a diversified resource allocation and while continuing
to be robust and economically profitable, Jamuna Bank Ltd. will evolve into the most
compassionate bank. Jamuna Bank Limited strives to be one of the best banks in Bangladesh via
careful, innovative, and professional banking practices. The mission of the bank is to achieve its
corporate goals. Some of them are as follows: -

a) The bank creates wealth for the shareholders.

b) The bank intends to meet the needs of its clients and enhance their profitability by creating
corporate culture.
c) Jamuna Bank Limited extend the highest quality of services, which attracts the customers to
choose them first.
d) Jamuna Bank Limited provides high-quality financial services to strengthen the well-being
and success of the individual, industries, and business communities.

JBL intends to play a more important role in the economic development of Bangladesh and its
financial relations with the rest of the world by interlining both modernistic and international
operations.

4|Page
3. BRIEF OVERVIEW OF THE ORGANIZATION: -

Jamuna Bank Limited provide all types of help to trade, commerce, industry and overall business
of the country. The bank’s management is increasingly focused on identifying and anticipating
the needs of its clients. Since consumers’ needs change with the passage of time, the bank makes
every effort to devise plans and launch new goods to keep up with the changing situation.
Jamuna bank ltd has made considerable strides over the course of its 21- year long journey. The
bank has also established itself as one of the country’s most reputable service providers.

It has its network in 8th divisional headquarters: -

 DHAKA DIVISION (71)

 CHATTAGRAM DIVISION (29)
 SYLHET DIVISION (4)
 KHULNA DIVISION (5)
 RAJSHAHI DIVISION (16)
 RANGPUR DIVISION (9)
 BARISHAL DIVISION (3)
 MYMENSINGH DIVISION (4)

5|Page
 The company have its own mission vision and core values,

• TO BECOME A LEADING BANKING INSTITUTION AND PLAY

A SIGNIFICANT ROLE IN THE COUNTRY'S DEVELOPMENT.

MISSION

 TRUST
 INTEGRITY
 COMMITMENTS
 BUSINESS ETHICS
CORE VALUES  QUALITY
 FAIRNESS
 TEAMWORK
 RESPECT
 COURTESY HARMONY
 UNIQUE CULTURE

6|Page
4. COMPANY ORGANOGRAM:

7|Page
The different job grades at Jamuna Bank and their salary range are discussed
below:
8|Page
 Chairman Tk. 1000000+
 Managing Director Tk. 7,00,000- Tk. 9,00,000
 Associate Managing Director Tk. 6,00,000- Tk. 7,00,000
 Deputy Managing Director Tk. 5,00,000
 Senior Executive Vice President Tk. 3,00,000
 Executive Vice President Tk. 2,50,000
 Senior Vice President Tk. 2,00,000- Tk. 2,20,000
 Vice President Tk. 1,50,000- Tk. 1,80,000
 Senior Assistant Vice President Tk. 1,30,000- Tk. 1,50,000
 Assistant Vice President Tk. 1,00,000- Tk. 1,20,500
 First Assistant Vice President Tk. 85,000- Tk. 90,000
 Senior Executive Officer Tk. 75,000- Tk. 80,000
 Executive Officer Tk. 65,000- Tk. 70,500
 First Executive Officer Tk. 55,000- Tk. 60,000
 Officer Tk. 30,000- Tk. 35,000
 First Officer Tk. 25,000- Tk. 32,000
 Assistant Officer Tk. 20,000- Tk. 28,000

5. Organization’s Culture:

9|Page
The corporate environment helps Jamuna Bank employees learn about culture. Employees are
sometimes trained to act and work in accordance with their own culture. The way that
different people learn about culture varies to some extent. Employees who are eager to work
learn culture more quickly than their counterparts. According to one employee, upper-level
managers have a strong influence on cultural learning. If the upper management is friendly to
the employees, it is almost certain that the employees will learn and work through culture. It
is difficult, but not impossible, to learn culture if the first line managers or officers are not
communicative or tough in nature. Furthermore, the organization is highly structured in
terms of corporate lines. In the customer service sector, daily routine work, and
seriousness in the work, organizational culture can be very strong. Also, in some
sectors, the fact that their organizational culture is relatively weak is an impediment to
using innovation at work.

6. Situation Analysis

10 | P a g e
External Factors:

 POLITICAL FACTORS:

The banking sector seems to be strong, but it is weak towards the government. To reduce problems,
Jamuna Bank has a diversified portfolio. The managers make corporate plans according to the market’s
demands.

 ECONOMIC FACTORS: EASILY INFLUENCED:

The banking sector is knitted with the economy. The amount of money banks can access is determined by
how income flows, as well as whether the economy is growing or drowning in debt through periods of
hardship. Customers' spending patterns, as well as the explanations behind them, influence whether they
deposit or invest money at banks.

 SOCIOCULTURAL FACTORS: CONSUMERS WANT EASE:

People look for loans relates to their needs. Consumers request advice from bank tellers on topics such as
savings deposits, credit cards and more. Jamuna Bank supports finance, manufacturing, and the country's
overall business in a variety of ways. JBL's funds are also open to developers who choose to start up new
businesses or expand existing ones.

 TECHNOLOGICAL FACTORS: SMARTPHONES TO THE RESCUE

Customers have become more educated as a result of technological developments. Jamuna Bank has
made significant technological investments and is in the process of transitioning to a cutting-edge core
banking structure. We offer a wide range of services to our valued customers, including Online Banking
and various Value-Added Services (VAS) such as SWIFT, ATM, National Payment and so on.

 LEGAL FACTORS: STRICT GUIDELINES:

11 | P a g e
Restrictive anonymity, customer controls, and trade mechanisms are enforced to ensure frameworks
within the financial system. Jamuna Bank is still on the lookout for legal and regulatory questions.

 ENVIRONMENTAL: REDUCED FOOTPRINT:

The use of paper is reduced as a result of technological advancements, especially mobile banking
applications. In addition, the requirement to travel straight to a branch to handle business is reduced.

Internal Factors:

 Control Environment:

The control structure is the basis on which an effective internal control mechanism is outlined and
intervened in a venture that aims to (1) Achieve its strategic goals, (2) Provide accurate financial reports
to the stakeholders, (3) Conduct its business efficiently and effectively, (4) Comply with all relevant laws
and regulations, and (5) Safeguard its properties.

 Segregation of Duties:

The Bank's Internal Control and Compliance Division (ICCD) is made up of three interconnected
wings/units: I Audit & Inspection Department, ii) Monitoring Department, and iii) Compliance
Department.

 Monitoring Department:

As part of their off-site monitoring operations, it tracks and checks the operating performance of various
Branches, such as off-site supervision, using Quarterly Activity Reports (QORs), Loan Documentation
Checklists (LDCs), Departmental Control Function Checklists (DCFCLs), and so on. If there comes a
significant change then this department will inform ICCD’s Head to go for an investigation.

 Compliance Department:

This Department's job is to make sure that all regulatory requirements, such as those issued by
Bangladesh Bank, the National Board Revenue (NBR), the Bangladesh Securities and Exchange

12 | P a g e
Commission (BSEC), the Registrar of Joint Stock Companies and Firms (RJSC), the Ministry of Finance,
and External Audit, are followed to the letter.

 IT security:

IT security refers to the safeguarding of information systems against the exploitation or destruction of
their hardware, applications, and data. It includes limiting physical access to hardware and safeguarding
against harm caused by network access, data and code injection, and operator errors.

13 | P a g e
 7. SWOT ANALYSIS:

A SWOT analysis is always helpful for financial institutions because it helps them to examine
and allows them to achieve their goals.

( https://www.lawyersnjurists.com/?fbclid=IwAR0WSjxqS-A46-1_AwvqrSWv7Z8JRQJnNUr-
tMl57N9ulyUz8kK6DZVgykI )

STRENGTHS- High quality services, constant innovation, higher productivity has helped
them to establish a good reputation

• Qualified Board and Directors

• Skilled Management

• Network: Jamuna Bank Limited has 141 branches. They have 10 sub-branches, 14
SPEED- Jamuna Bank Banking Booth/Collection booths, and over 295 ATMs across the
country.

• Human Resources- JBL deeply relies on their human resources, as a result, they are
considered to be the human capital of the company. It is their Human Capital who has brought
the remarkable successes for the Bank through “Discipline, Individual Efficiency, Customer
Service, Quality and Team Work”.

• Customer oriented.

• They try to provide accurate information to their customers.

• They maintain strict secrecy of customers’ accounts at all times, unless asked by the law.

• They have an effective online presence.

• They have real time online banking solutions

• They provide IT based services to their customers.

• JBL has a mobile financial service, known as JustPay.

14 | P a g e
WEAKNESS-

• They have less publicity and promotions done, compared to other leading banks.

• They have poor access to rural areas.

• They deeply rely on corporate segment credit.

OPPURTUNITY-

• Innovation of products and services

• Extension of local entrepreneurs

• Development of rural markets

• Usage of modern technology

• JBL has been awarded the best “Primary Dealer Bank” for the 20th times by Bangladesh
Bank for its outstanding performance.

THREATS-

• Commercial banks are focusing more on SME.

• Economic problems and unstable markets (if occurred) .

• Rise in competition as financial institutions and NBFIs enter the market.

• Political unrest.

• Problems arising from viruses and pandemics.

15 | P a g e
 8. Business strategies of JBL:

Marketing Strategy:

In order to set up channels of information and persuasion, promotion functions as the organizer
for all seller-initiated initiatives. Jamuna Bank Limited advertises their company through
sponsorships of events that serve to remind clients of important dates.

To advance their goods and services through middlemen and directly to customers, they believe
on a variety of promotional features. In their opinion, Sales by Individuals has the ability to
produce a behavioral response and is effective at building brand image, communicating
information, and raising awareness.
https://www.academia.edu/31707620/Jamuna_Bank_Ltd_Strategic_Management_Process
(2017)

Implementation strategy:

JBL is employing a convincing "managing for growth" strategy to achieve continued business
growth. A key component of JBL's approach is the development of broad values among their
workforce. Their "strategic management" efforts have been put in place to guarantee each
business unit's competitive edge. Commercial banking, private banking, personal financial
services, corporate and investment banking are the main areas of strategy development intensity.

Competitive Strategy:

Customers already associate JBL with a distinctive brand image that distinguishes them from the
competition. It is well-known in Bangladesh as a bank. Customers can therefore have confidence
in this brand and feel secure when transacting with Jamuna Bank Ltd. They are committed to
offering each customer with high-quality service. Instead of dealing with numerous branches,
they believe in ensuring exceptional service there because they have fewer branches than their
top competitors.

16 | P a g e
Corporate Strategy:

They continue to position JBL for growth by raising money to invest primarily in organic growth
opportunities in their home markets and prioritizing dividend growth. They have also adopted
filters, which are tools for determining which businesses fit in their portfolio. Finally, they
address portfolio fragmentation by identifying which non-strategic businesses to sell.

https://www.academia.edu/31707620/Jamuna_Bank_Ltd_Strategic_Management_Process
(2017)

17 | P a g e
 9. Management Action:

Lots of problems are out there in retail market, whole sale market, employee’s management,
performance and customer satisfaction. Some of the risk and action taken against them are
shown below.

 Market risks:

Jamuna Bank Limited is exposed to market risk in variety of ways. Market risk
exposure is mainly explicit in portfolio of Bangladesh Government Treasury Bonds held
under HFT (held for trading) conversely, Market risk is implicit such as interest rate risk due
to mismatch of loans and Foreign Exchange Risk due to maturity mismatch of foreign
currency positions. The portfolios are being revalued at an interval at current market price of
marketing to market basis. Besides, the portfolios have been synchronized and line with
Bangladesh Bank guidelines of risk-based Capital Adequacy for interest rate risk and foreign
exchange risk.

 Interest risks:

Interest Rate Risk develops when positions are out of alignment. Interest Rate Risk
is created by the landing, funding, and investing activities of the bank. The Bank evaluates
interest rate risk from the perspective of earning potential, which is a traditional method for
doing so. This perspective is obtained by calculating the change in Net Interest Income. On
Net Interest Margin or the difference between total interest income and total interest
expenditures.

10. Recommendations:
18 | P a g e
 They are more concerned with the global and corporate customer base.' In addition, they
can provide some special services and facilities to other customer groups. JBL has always
been on the cutting edge of technological advancements in its products and services. All
of their customers receive top-notch service, which is something they place a lot of
emphasis on.
 They can plan additional moves to gain a competitive advantage over competitors. They
may pursue several competitive moves to gain a competitive advantage over competitors.
For example, they could lower or change interest rates in their services, improve features,
implement innovations in the service, and so on. JBL is one of the banks that has
participated in a variety of corporate social activities and attempted to incorporate a local
flavor into their operations in Bangladesh. The people of Bangladesh have appreciated
such considerate attitudes toward our nation and culture.
 The JBL website needs regular updates, high-tech banking equipment should be
introduced, and bankers should have access to training facilities.

Therefore, the JBL can solve the above-mentioned issues better if they follow these
recommendations well.

11. Conclusion:
19 | P a g e
To summarize, JBL has a clear vision of becoming a leading banking institution while also
playing an important role in the country's economic development. Furthermore, the bank is
committed to satisfying its customers' diverse needs through an array of best-suited products at a
competitive price. JBL has always placed a premium on trust, integrity, commitment, business
ethics, quality, fairness, teamwork, respect, courtesy harmony, and a distinctive culture. Aside
from that, JBL is consistently adding value to meet the challenges of building the country's
infrastructure from the rural to the urban areas. JBL has some issues, but it is encouraging that
they are working to overcome them. Last but not least, from the development of new products or
features to remittance, JBL has multiple services with state-of-the-art technology for providing
security. JBL has also proven itself trustworthy since its inception in Bangladesh, making it one
of the leading organizations in the Banking sectors of our country.

12. Reference:

20 | P a g e
Swot Analysis & Situational analysis https://www.lawyersnjurists.com/?fbclid=IwAR0WSjxqS-
A46-1_AwvqrSWv7Z8JRQJnNUr-tMl57N9ulyUz8kK6DZVgykI

Brief overview of the organization https://en.wikipedia.org/wiki/Jamuna_Bank

Business strategies of JBL & Management Action:

https://www.academia.edu/31707620/Jamuna_Bank_Ltd_Strategic_Management_Process
(2017)

21 | P a g e