Exploring Modern Banking Services of Janata

Bank Limited
 Internship Report on
Modern Practices of Banking Services Systems of
Janata Bank Limited Bank Limited

Submitted To:
Mr. Badruzzaman
Controller of Examination
National University
Gazipur – 1704

Supervised By:
Mr. Mohammad Mosharraf Hossain
Associate Professor
Department of Business Administration
Dhaka City College

Submitted By:
Shoreful Islam Arko
NU Roll No: 2180640
NU Registration No:17501000950
Session: 2017-2018
Major in Management
Department of Business Administration
Dhaka City College

Date of Submission: October 19, 2023

 Letter of Transmittal

October 18, 2023

Mr. Badruzzaman

Controller of Examination

National University

Gazipur - 1704
Subject: Submission of Internship Report on "Exploring Modern Banking Services of Janata
Bank Limited "

Dear Sir,

With due to respect, I would like to submit an exclusive Internship Report on "Exploring Modern
Banking Services of Janata Bank Limited ". As a part of my BBA program. The report deals with
online banking activities. I tried my level best to make the report meaningful and informative. I
expect that you would enjoy the report

I am grateful to you for your guidance and kind cooperation at every step of my endeavor on this
report. I shall remain deeply grateful if you kindly take some pen to go through the report and
evaluate my performance

Sincerely Yours

.....................................

Shoreful Islam Arko

National University Registration No: 17501000950

Academic Session: 2017-2018

Major in Management

Department of Business Administration

Dhaka City College

i
 Acknowledgement

At first, I would like to express my deepest gratitude to almighty Allah for giving me the strength
and the capability to complete my BBA courses and prepare this internship report within time on
'Janata Bank Limited".

I would like to express my gratitude the authority of National University and to our honorable
Principal, Professor Bedar Uddin Ahmed for providing me such an opportunity. I also give my
sincere gratitude to my academic supervisor, Mr. Mohammad Mosharraf Hossain, Associate
Professor, Department of Business Administration, Dhaka City College for his continuous
guideline, individual suggestions, continuous encouragement and unfailing enthusiasm throughout
the process of completion of this report.

I am grateful specially to Branch Manager Mr. Abu Khalid, Assistant Manager Mr. Arifur
Rahman, General Officer, Mrs. Faria Ali and all other officers in Janata Bank Limited for their
sincere co-operation and support for giving me the opportunity and always helping and giving their
support for making a standard report.

I would like to thank all of my faculty members of the Department of Business Administration,
Dhaka City College who had been very co-operative and support me. to do this report. I would also
like to express my special thanks to the staff of the college for their excellent administrative
support.

In the end, I would like to thanks all the people who have directly or indirectly contributed to
preparing this report.

ii
 Certificate of Supervisor

This is to certify that Shoreful Islam Arko, student of BBA, Bearing National University
Registration Number 17501000950, Roll No: 2180640 Academic session 2017–2018, Major in
Management, is a regular student of 8th semester on BBA program, Department of Business
Administration, Dhaka City College, under National University of Bangladesh. He has completed
this internship program in “Janata Bank Limited” Mouchak Market Corporate Branch, under my
supervision, which is a fulfillment of particular requirement of obtaining of BBA.

I wish him every success in his future endeavor.

……………………………………

Mr. Mohammad Mosharraf Hossain

Associate Professor
Department of Business Administration
Dhaka City College

iii
 Executive Summary

Bank is a financial institution that receives, collects, transfers, pays, exchanges lend, invests, or
safeguards money for its customers. Banking is the business of providing financial services to the
private individuals, corporations, government agencies and business and industries. The main
service of a bank is mobilizing deposits and lending these to those people to finance their
consumption or business activities. Banks also render services like issue of letter of credit and
guarantee, remittance or money. collection of utility bills, underwriting of capital issues, portfolio
management as well as locker's services and custodian of valuables.

The formation of Janata Bank in 1972 by combining the erstwhile United Bank Limited and Union
Bank Limited under the Banks Nationalization Order (President's Order No. 26) of [Link] 15
November, 2007 Janata Bank got registered with the Joint Stock of Registrars and restructured it as
a public limited company with the name Janata Bank Limited. Modern banking is the practice of
making bank transactions or paying bills via the Internet. Thanks to technology, and the Internet in
particular, we no longer have to leave the house. We can shop online, communicate online, and now,
we can even do our banking online, Internet banking allows us to make deposits, withdrawals and
pay bills all with the click of a mouse. It doesn't get much more convenient than that the benefits are
many.

Janata Bank was born with a new concept of purposeful banking sub serving the growing and
diversified financial needs of planned economic development of the country. Janata Bank Limited is
playing the most significant role in collecting foreign remittance from different countries and
transfers the currency in BDT to the destined location. Their vision is Ensuring highest standard of
clientele services through best application of latest information technology, making due to
contribution to the national economy and establishing themselves firmly at home and abroad as a
front ranking bank of the country. Their business goal is to patronize, sponsor and encouraged
games and sports, entertainment, and other socio-economic activities alongside providing the best
services to the client. Here researcher also describe about organization objective, hierarchy,
function, product & services, financial highlights, values, CSR activities and so on. Janata Bank has
introduced new services for those people who are not covered by traditional banking services.

iv
Among these, there are services/products like internet banking (JB Remittance Payment System)
and real time internet core banking system. Bangladesh Automated Clearing House (BACH), the
first ever electronic clearing house, with its components- Bangladesh Automated Cheque Processing
System (BACPS) and Bangladesh Electronic Fund Transfer Network (BEFTN), Society for
Worldwide Interbank Financial Telecommunication etc. Researcher try to explain Janata Bank
different types of internet banking and functional services. Here researcher also talk about Different
Types of Modern Banking Services of Janata Bank Limited, Janata Bank Ltd Network Design
(LAN & WAN), Advantages & disadvantage of Modern Banking, Modern Banking Components,
SWOT Analysis, Types of Risks Associated in Internet Banking of JBL and many other.

Researcher mention the fact which she analyst in her working period of Janata Bank Limited, there
are some weaknesses such as, Janata Bank ATM booth are still not available in every place and rural
areas customers suffer it most, their credit card holder doesn't get any benefits from shopping
Centre or restaurant, arising technological problem at the time of money transfer or withdrawal
money from booth and so on. Researcher give some solution like, increase ATM booth, spread ATM
booth all over the country in important place, rises Credit card acceptance in all places, resolve
technological problem by using latest technology. Increase customer awareness about online
banking of Janata bank, making Service charge of online banking as low as possibility etc. so, I
believe that if Janata Bank and their Modern Banking systems overcome their weakness and
problems than they will be the most popular and profitable organization in the Banking industry of
Bangladesh.

v
 Table of Contents

Prefatory Part Page No

Letter of Transmittal i

Acknowledgement ii

Certificate of Supervisor iii

Executive Summary iv-v
Acronyms ix
List of Tables & Figures x

Chapter One: Introduction

SL No. Contents Page No.
1.1 Origin of the report 1
1.2 Objective of the Report 2
1.3 Methodology 3
1.4 Scope of the report 4
1.5 Limitation of the study 4

Chapter Two: Overview of Janata Bank Limited

2.1 Historical Background 5
2.2 Vision 6
2.3 Mission 6
2.4 Business Goals 6
2.5 Objective of Janata Bank Limited 7
2.6 Janata Bank Limited at a Glance 8-9
2.7 Hierarchy of the Janata Bank Limited 10
2.8 Function of the Bank 11
2.9 Slogan of the Bank 11
2.10 Financial Highlight of Janata Bank 12-14
2.11 Values 15
2.12 Ethical Principles 16
2.13 Code of Conduct 16
2.14 Corporate Social responsibility of Janata Bank 17-19
2.15 Products of Janata Bank Limited 20
2.16 Services of Janata Bank Limited 21-23
2.17 Banking in Bangladesh of JBL 24

vi
3.18 Types of Risks Associated in Internet Banking of JBL 49
3.18.1 Operational Risk 49
3.18.2 Security Risk 50-51
3.18.3 Money Laundering Risk 51
3.18.4 Liquidity Risk 51-52
3.19 Benefits of Modern Banking 52
3.20 Performance of Exploring Modern Banking Services of JBL 53
3.21 The Most Enticing offering Provided by JBL 53-54
3.22 Internet Banking Growth of JBL 55
3.23 Modern Banking Services Activities of JBL 56
3.24 Information of JBL On-Line 56
3.25 Modern Banking Facilities by JBL 57

Chapter Four: Findings,

Recommendations, Conclusion
4.1 Findings 58-59
4.2 Recommendations 60
4.3 Conclusion 61
Bibliography 62

viii
 Acronyms

NPSB National Payment Switch Bangladesh

POS Point of Sales

VPN Virtual Private Network

BEFTN Bangladesh Electronic Fund Transfer Network

CBS Core Banking System

CDC Central Data Centre

DRS Disaster Recovery Site

BACH Bangladesh Automated Clearing House

BACPS Bangladesh Automated Cheque Processing System

FX Foreign Exchange

LC Letter of Credit

ATM Automated Teller Machines

JBL Janata Bank Limited

BBA Bachelor of Business Administration

LAN Local Area Network

WAN Wide Area Network

SWOT Strength, Weakness, Opportunity & Threat

SMS Short Message Service

SCB State Owned Commercial Bank

MD Managing Director

CSR Corporate Social Responsibility

MRDI Management and Resource Development Initiative

ix
 List of Tables

Serial no Topic Page no

Table 01 Janata Bank Ltd at a Glance 8-9
Table 02 Financial Highlight of Janata Bank 12-14
Table 03 Number of Branches Janata Bank 26
Table 04 Interest rate of Janata Bank 27

Table 05 Internet banking growth of JBL 55

List of Figures

Serial no Topic Page no

Figure 01 Hierarchy of the Janata Bank Limited 10
Figure 02 Values 15
Figure 03 SWOT Analysis of JBL 30
Figure 04 Percentage of Most Lucrative Online 46
Services of JBL
Figure 05 Electronic Money 54
Figure 06 Internet Baking Growth of JBL 55
Figure 07 Information of JBL On-Line 56

x
Exploring Modern Banking Services of Janata Bank Limited

Chapter 1
Introduction
1.1 Origin of the Report

An internship is designed to bridge the gap between the theoretical knowledge and real application.
The prime reason of this report is to learn about Exploring Modern Banking Services of Janata
Bank Limited. This report has been prepared based on one selected listed bank in Bangladesh,
named Janata Bank Limited. The report has been prepared based on the information of this bank
which has been gathered during the internship period. The report titled "Exploring Modern Banking
Services of Janata Bank Limited ". No knowledge is fully completed unless it is fully supported by
events on ground. Whatever may be the quality of theoretical knowledge, it is not complete without
practical implication on ground. This realization is more pronounced in the study of Business
Administration where experience on ground plays a dominant role. Internship program is essential
for all BBA students because it helps him/her acquit with real life situation. For a fresh graduate it
would be a complete hassle to understand working environment, culture of a specific organization.
But it is necessary for the student what it feels like working in the organization, how they should
adjust with the working environment and how to communicate with their supervisor, colleagues and
so on. They must know all those things before they are going to apply for a specific organization.
And for giving the student an opportunity that how it feels like to work under an organization, give
the student that kind of experience, internship is a vital program that is included in Bachelor of
Business Administration (BBA), academic course to make the student more confident when they are
exposed to the job market. Bank is a one of the important financial institutions, so I have selected
Janata Bank Limited, which is one of the leading private commercial banks in Bangladesh. And my
faculty supervisor Mr. Mohammad Mosharraf Hossain, Associate Professor of Department of
Business Administration at Dhaka City College also approved this topic and authorized me to
prepare this report. For this reason, I have prepared my internship report on Modern Banking
System of Janata Bank Limited. Throughout the last few years Bangladesh has been experiencing a
rapid and significant change in the banking sector. Not only in our country, all over the world the
dimension of banking has been changing rapidly due to the technological innovation, globalization
and deregulation. Janata Bank Ltd is a state-owned scheduled bank in Bangladesh.

For being a student of Business Administration (BBA) the internship is highly required to complete
this academic course. The main purpose of the internship program is to apply academic knowledge
to practical situation where a student car understand corporate life in reality. It helps student to get
familiar with organizational culture and working environment of the organization. It would not be
wrong if any one says the necessity of internship program is undeniable.
1
1.2 Objectives of the Report

This report gives us an opportunity to reflect on the professional aspects of the internship
experience and the skills that we learned. The main objective of the internship is to generate a
thorough understanding of the workplace relationship, performing of the activities and engaging
oneself in the working environment. The objective of making report is divided into two parts. Those
are given below:

 Primary objective: The primary objective of the report is fulfilling the course requirement
for completion of the degree of Bachelor of Business Administration under National
University of Bangladesh.

 Secondary objectives: The objectives are highlighted in below:

 To identify the risk related to Modern Banking System of JBL.

 To point out different aspects of Modern Banking System of JBL.
 To identify the massive problem of modern banking and the problem of JBL related to
Modern Banking.
 To recommend some ways to improve the system.
 To come up with the possible strategies to gain competitive advantage. Improving
Professional advancement.
 To learn and apply theoretical knowledge practically in the workplace.
 To develop interpersonal, managerial and communication skills.

2
1.3 Methodology of the Report

The report is descriptive in nature. To fulfill the objectives of the report the total information
included in this report has been collected from different sources. Here, I have discussed about
Exploring Modern Banking Services of Janata Bank Limited. For this purpose, 1 use my different
personal observation during my internship program. For preparing this report, I have used both
primary and secondary data.

Primary Sources:

 Personal Observation.
 Conversation with bank employees.
 Informal conversation with customers.
 Practical experience of banking.
 Questionnaire survey.

Secondary Sources:

 Various paper or record of the Bank.

 Annual Report of Janata Bank Limited.
 Study related book and journals.
 Website.
 Documents supplied by the executives and officers of JBL.

3
1.4 Scope of the Report

This report is mainly focused on the Janata Bank Limited modern banking system and how they are
organizing and maintaining to it. So many information is included in the report like, what are their
procedures and steps for modern banking system for modern hacking, what are their terms and
conditions and how they organize the procedure, etc. As well as the researcher also focused its
vision, mission, objectives, its strengths, weaknesses, opportunities and threats also the researcher
mention all the topic like, types of modern banking services, its facilities, problems, ethics, values,
core functions, additional services and many others about modern banking. So, people who are
interested to know about the Exploring Modern Banking Services of Janata Bank Limited this
report will be benefited for them.

1.5 Limitations of the Report

To provide current information and to make the report read-worthy, support from various sources is
must. In spite of my best effort, I have faced some limitations when I was preparing the report
which is mentioned below:

 The information about Exploring Modern Banking Services of Janata Bank Limited is not
available in website.
 I have no previous experience & knowledge about the corporate banking sector.
 I have no previous experience to preparing internship report so it's very challenging to
prepare a standard report.
 Lack of necessary co-operation of the officials due to maintain secrecy.
 Due to time limitation, many of aspects could not be discussed in the present report.
 Since the bank personnel were very busy, they could not give enough time and didn't guide
me.
 Based on secondary data in most cases for preparing this report.

4
Exploring Modern Banking Services of Janata Bank Limited

Chapter 2
Company Overview
2.1 Historical Background

With the emergence of Bangladesh as an independent, sovereign state in 1971 after a devastating
nine-month war against the West Pakistani occupation army, a war, full of blood and tears, trauma
and pain of millions of our beloved ones, the legacy of rebuilding the already broken financial base
of the country was felt as an urgent call of the day against a collapsed economic reality of a newly
born state. In this backdrop, in order to rebuild the country's economy, measures had been taken to
merge a number of banks previously operated in this region and make new banks and these
initiatives led to formation of Janata Bank in 1972 by combining the erstwhile United Bank Limited
and Union Bank Limited under the Banks Nationalization Order (President's Order No. 26) of
[Link] 15 November, 2007 Janata Bank got registered with the Joint Stock of Registrars and
restructured it as a public limited company with the name Janata Bank Limited. Including 4
overseas branches in United Arab Emirates Janata Bank runs its business with 915 branches across
the country having a big family of around 11,463 (As on 31.07.2020) employees with its head office
located at Janata Bhaban at Motijheel C/A, the heart of the capital city, Dhaka.

At the end of 2019 the Bank held Deposit BDT 691,409,372,051, Advance BDT 548,473,941,439
with Authorized capital BDT 30,000 million and Paid-up Capital BDT 23,140 million. Janata Bank
Limited, a corporate body trusted over the years, the 2nd largest (in respect of Deposits/Assets)
commercial bank in Bangladesh, has been playing pivotal role in overall financial activities of the
country and is possessing a long heritage of discharging laudable services to the society since her
embankment immediately after the emergence of this verdant rich alluvial soil as a sovereign,
independent state.

5
2.2 Vision
Ensuring highest standard of clientele services through best application of latest information
technology, making due to contribution to the national economy and establishing themselves firmly
at home and abroad as a front ranking bank of the country are their cherished vision.

2.3 Mission
Janata Bank Limited will be an effective commercial bank by maintaining stable growth strategy,
delivering high quality financial products, providing excellent customer service through an
experienced management team, and ensuring good corporate governance in every step of banking
network.

2.4 Business goal

To patronize, sponsor and encouraged games and sports, entertainment, and other socio-economic
activities alongside providing the best services to the client.

The Future Thrust

 Full duplex on-line Banking

 Introducing more innovative products and services
 Opening new branches
 Expansion of business network at home and abroad
 SMS Banking
 Introduction of new liability/Asset products.

Corporate Culture: Employees of JBL share certain common values, which helps to create a JBL
Culture.

 The client comes first

 Search for professional excellence
 An openness to new & new methods to encourage creativity
 Quick decision making
 Flexibility and prompt response
 A sense of professional ethics.
6
2.5 Objectives of Janata Bank Limited

As a commercial organization Janata Bank Limited belongs to people. It implies that it stands for
meeting the banking needs of the mass of the society. It is new aspect of banking, and this
philosophy is to be transacted in functional terms in phases. In compliance with very nature of the
organization, the objective in mind the bank aims at excelling quality and diversified services. To
fulfill its mission Janata Bank Limited has its main objectives as follows:

 To earn customer satisfaction through diversified banking activities and introduction of

innovative banking.
 To improve the customer services in recent times by introducing a number of IT-based
reform measures.
 To maintain adequate control systems and transparency in procedures.
 To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
 To ensure an adequate rate of return on investment.
 Alongside up gradation and diversification of banking service to provide maximum
satisfaction to the respected clients, nourishing saving habit among the general people by
offering them attractive.
 To build up a deep-rooted and harmonious banker-customer relationships by dispensing
prompt and improved services to the clients.
 To maintain adequate liquidity to meet maturing obligations and commitments.
 Use the hard-earned investment of their valued shareholders. Simultaneously, play their due
part in developing a vibrant capital market by ensuring more effective participation of the
Bank in the share market.
 To maintain a healthy growth of business with desired image.
 To make best use of latest technologies for giving the clients a taste of modern banking to
encourage them to continue and feel proud of banking with JBL.
 Respond to the need of the time by participating in syndicated large loans financing, thereby
expanding the area of investment of the Bank.
 To gain confidence of all quarters involved in the economic development of the country
through pursuance of a policy of continuous adjustment.

7
2.6 Janata Bank Limited at a Glance

FEATURES VALUES

Name Janata Bank Limited

Genesis Janata Bank Limited, the 2nd largest State Owned Commercial Bank
(SCB) in Bangladesh, is playing pivotal role in overall financial activities
of the country. The Bank emerged as ‘Janata Bank’ by combining the
erstwhile United Bank Limited and Union Bank Limited under the Banks
Nationalization Order (President’s Order- 26) of 1972 and was restructured
as a limited company in November, 2007. Since inception in 1972 the
Bank has commendably contributed to the socio-economic development of
Bangladesh and helped structuring solid financial ground of the country as
well. Janata Bank runs its business with 912 branches across the country
including 4 overseas branches in United Arab Emirates.
Registered Address Janata Bhaban, 110, Motijheel Commercial Area Dhaka -1000,
Bangladesh.

Legal Status Public Limited Company

Chairman Dr. S. M. Mahfuzur Rahman

CEO & Managing Md. Abdul Jabber

Director

Company Secretary Mansur-Ul Haque Md. Jahangir

Date of Incorporation 21 May 2007

Authorized Capital BDT 30,000 Million

Paid up Capital BDT 23,140 Million

Face value per share BDT 100 per share

8
Shareholding Pattern 100% Share owned by the Government of Bangladesh

Number of Employees 12,745 (As on 30.06.2023)

Banking license 31 May 2007

obtained from
Bangladesh Bank
Phone +88 02-223380029, +88 02-223380042, +88 02-223385042, +88 02-
223386142, +88 02-223350193

Fax 88-02-9554460, 9553329, 9552078

SWIFT JANBBDDH

Website [Link], [Link],

[Link]

E-mail md@[Link]

Table 01: Janata Bank Limited at a Glance

Source: [Link]

9
2.7 Hierarchy of the Bank

Chairman

Officer -i
Managing Director (MD)

Officer -ii
Deputy Managing Director

Officer -iii
Senior Executive Vice

Junior Officer
Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Principal Officer

Senior Officer

Figure-1: Hierarchy of Janata Bank LTD

Source: [Link]
10
2.8 Functions of the Bank

Janata Bank provides complete range of services to its customers both domestic and foreign.
Rendering of General Banking Facilities & Utility Services, Deposit Mobilization, providing
various Credit Facilities including Working Capital to Industries, Investment, Outward & Inward
Remittances, Financing Import & Export etc. are the major functions performed by Janata Bank.

 To provide better services to its Customers and Correspondents Janata Bank is now more
organized to handle sophisticated operations through a well-trained and efficient Manpower.

 Recently Janata Bank has entered computer operations to provide prompt and efficient
services to the Customers.

 Janata Bank has been involved in Micro financing since 1973 through its vast branch
network spread all over the country.

 Bank has launched these micro credit programs/projects on its own initiative and in
collaboration with local and foreign agencies.

2.9 Slogan of the Bank

To provide reliable and quality banking services to the public through healthy competition in
the banking industry.

11
 2.10 Financial Highlight of Janata Bank

Previous five years financial report are given below:

(Figure in million)

Serial Particular 2022 2021 2020 2019 2018

1 Authorized 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

capital

2 Paid up capital 23,140.00 23,140.00 23,140.00 23,140.00 23,140.00

3 Total capital(Tier- 63,793.32 60,169.13 58,075.81 54,322.81 44596.31

I+Tier-II)

4 Required capital 71,023.75 59,862.09 57,930.50 53,823.05 44,341.90

5 Surplus/(short 7,230.43 307.04 145.30 499.75 254.41

age) of capital

6 Capital to Risk 8.98% 10.05% 10.03% 10.09% 10.06%

Weighted Asset
Ratio (CRAR)
7 Total assets 1,249,540.23 1,043,311.18 895,387.08 866,046.48 805,988.41

8 Total deposits 1,016,208.50 824,007.96 691,409.37 675,548.46 649,440.78

9 Total loans and 699,656.76 605,351.70 548,473.94 533,707.17 459,580.05

advances

10 Total contingent 119,705.81 113,491.58 85,918.92 94,744.23 120,881.92

liabilities and
commitments
11 Credit deposit 68.85% 73.46% 79.33% 79.00% 70.77%
ratio

12 Total classified 123,199.92 137,362.19 146,033.38 179,984.47 75,995.50

loans

12
13 Percentage of 17.61% 22.69% 26.63% 33.72% 16.54%
classified loans
against total loans
14 Import 275,158.00 186,289.00 210,957.20 220,413.70 143,582.20

15 Export 171,139.30 93,005.70 97,398.20 114,681.00 139,920.90

16 Foreign 68,298.00 78,144.30 75,532.10 76,078.10 72,022.00

remittance

17 Income from 20,370.05 18,560.29 11,664.06 11,350.63 14,414.82

investment

18 Operating profit 10,024.00 9,809.76 7,093.66 9,788.97 11,369.48

19 Profit after tax 3,003.19 143.18 246.44 248.98 2,686.50

and provision

20 Provision Kept 52,272.78 44,736.83 39,296.98 33,920.65 29,614.04

against loans and
advances (G+S)
including OBS
exposures
21 Provision Kept 37,106.36 31,637.03 31,309.38 30,804.01 23,910.51
against classified
loans and
advances
22 Provision 0.03 0.09 62.33 0.90 59.39
surplus/(deficit)
against loans and
advances
23 Cost of fund 6.15% 6.37% 6.63% 7.10% 7.28%

24 Cost of deposit 4.34% 4.14% 4.26% 4.34% 4.47%

(%)

25 Average return on 6.13% 5.76% 6.40% 7.15% 8.04%

loans and
advances
26 Interest spread 1.79% 1.61% 2.14% 2.81% 3.58%

13
27 Net spread 0.66% 0.88% 0.69% 0.91% 1.02%

28 Earning assets 984,530.51 772,195.80 622,101.79 279,090.42 195,983.00

29 Non-earning 265,009.72 271,11537 273,285.29 297,090.42 195,983.96

assets

30 Return on 6.38% 9.08% 6.89% 8.37% 6.90%

investment (ROI)

31 Return on assets 0.24% 0.01% 0.03% 0.03% 0.33%

(ROA) after tax

32 Return on equity 6.33% 0.28% 0.49% 0.46% 5.23%

(ROE)

33 Earning per share 12.98 0.62 1.06 1.17 14.04

(EPS) (in BDT)

34 Net operating 43.22 42.39 30.66 46.20 59.40

income per share
(in BDT)
35 Net assets value 204.96 222.57 217.23 235.77 268.36
per share
(NAVPS) (in BDT)
36 Net operating 425.69 320.00 63.46 (151.15) (167.99)
cash flow per
share (NOCFPS)
(in BDT)

Table 02: Financial Highlight of Janata Bank

Source: [Link]

14
2.11 Valuse

Janata Bank Ltd follows eight basic core values. These core values work as basic principles of JBL.
The core values of JBL are-

 Commitment
 Quality
 Diversity
 Sustainability
 Professionalism
 Transparency
 Responsibility
 Accountability

Commitment
Accountability Quality

Responsibility Diversity
Values

Professionalism Sustainability

Figure 02: Values

Source: [Link]

15
2.12 Ethical Principles

Bank deals with public money where ethical compliance is very important. JBL follows and
maintain ethical values in every sphere of its banking operation and customer services. The core
ethics of JBL business are as follows:

 Implement justice and fairness.

 Ensure optimal customer services.
 Maintain privacy and secrecy of customer's information.
 Prevent money laundering and corruption.
 Protects and upholds corporate values.
 Maintain accuracy and transparency in financial reporting.
 Protect natural environment.

2.13 Code of Conduct

In accordance with the ethical principles the code of conduct of JBL employees shall:

 Act with integrity, competence and dignity.

 Loyal to the bank and bank's interest.
 Maintain professionalism and ethical standards.
 Deliver professional service in accordance with JBL policies and relevant standards.
 Try to fulfill the customer needs in the best possible manner within the guideline of
corporate ethics.
 Keep all matters confidentially.
 Maintain knowledge of and comply with all applicable laws, rules and regulations.
 Never offered or accept illegal gifts or other facilities in order to achieve personal
advantage.
 Not engaged in any unprofessional conduct involving dishonesty, fraud.

16
2.14 Corporate Social Responsibility of Janata Bank

JBL sees CSR activities as a critical component of continuous improvement, like the overall effort
to be a more socially responsible and sustainable organization. Being one of the leading state-owned
commercial banks in Bangladesh, Janata Bank Limited, with its branches has also realized its
responsibilities to the society and is contributing to the amelioration of the social life of the destitute
people, infra- structure, environment etc. Not only that, it has stepped forward to introduce interest-
free loans to the poor and marginal farmers in the Aila-Sidr-Monga unit areas.

2.14.1 Field Of CSR: According to the policy, the CSR activities are performed in the following
fields:

 Education and Research

 Health and Treatment
 Poverty Reduction and Rehabilitation
 For repaying loan interest of the poor and marginal farmers and for leather sector business
promotion
 History, Culture and sports
 Information Technology
 Natural Calamity
 Protection of Environment
 Miscellaneous

2.14.2 Policy for CSR activities in JBL:

As per guide lines of DOS Circular no. 01 dtd. 01.06.2008 of Bangladesh Bank, Janata Bank Ltd
introduces its CSR programs in 2008. For the convenience of performing CSR activities, it has
developed a policy based on the DOS circular No- 02, dated 02.06.2009 and "CSR Evening:
Meeting Social Goals" organized by Management and Resources Development Initiative (MRDI).
The policy is as follows:

17
Education and Research

It is universally acknowledged that there is no alternative to education. So, keeping this in mind, it
has stretched its helping hands towards the financially deprived meritorious and those who have
great inclination to be benefited with education. Not only that, it is imparting in different types of
conferences, symposiums, workshops ete related to education and research. Being one of the
leading state-owned commercial banks in Bangladesh, Janata Bank Limited, with its branches has
also realized its responsibilities to the society and is contributing to the amelioration of the social
life of the destitute people, infra-structure, environment etc. Not only that, it has stepped forward to
introduce interest-free loans to the poor and marginal farmers in the Aila-Sidr-Monga unit areas.

Health and treatment

JBL have been treating this sector as the second most important one. In the last decade, diabetes,
heart diseases, cancer, liver Sirois etc. have taken an epidemic form. For building up a healthy
nation, as a bank of the people, JBL, both singly and cooperatively is playing an important role.

Natural Calamity

Though our country is a gifted child of nature, it is not free from the calamities like flood, cyclone,
earth quack, cranes, road accidents etc. Considering the humanitarian traits, JBL stands as a friend
to the hopeless people.

History, culture, tradition, sports etc

Aiming at imprinting the consciousness of the war of liberation into the heart of the people, JBL
takes initiatives to uphold our glorious history, culture etc. by sponsoring related organizations
arranging different programmer on these subjects.

Environment Protection

Now-a-days, pollution of environment has become a burning issue. For sustainable development,
JBL considers the matter as an important issue and is devoting a handsome amount in tree
plantation, forestation and other environment friendly activities for better, pollution free
environment.

18
Expansion of Information Technology

With a view to building "Digital Bangladesh" within 2021, JBL has been trying to bring all
organizations irrespective of types, by providing computers and other scientific equipments for
expansion of Information Technology.

Miscellaneous

Apart from these, sovereignty of the country, protection, discipline, economic freedom, ensuring
justice etc. are also been considered in CSR activities practiced by the bank. Least but not the last,
for the amelioration of the economic condition of those great-hearted freedom-fighters who laid
their lives for the sake of this independent Bangladesh. JBL is committed to remain by their side
always.

Procedure of disbursement

When applications from the deprived individual/organizations reach to the hand of the Chairman, he
sends those to the Business Development Marketing Department. The Department processes the
applications according to the directions of the Chairman and are presented as memo in the board
meetings of the directors. After approval, befitting instruments are made ready and the payees are
contacted over phone (if any number is given by the applicant) or sent to the respective addresses
reported in the applications.

19
2.15 Products of Janata Bank Limited

JBL render both corporate and retail banking services with a strong focus on socio- economic
development of the country. The bank typically provides short-term working capital loan and
limited long term credit exposure. Moreover, JBL offers micro enterprise and special credit as well
as rural banking. Under corporate banking services JBL provides trade finance, project finance,
syndicate finance. On the other hand, consumer loan, deposit scheme, remittance facilities are
provided through retail banking. In 2013, JBL launched its own innovation to remittance payment
system at all branches which facilitate. Janata Bank products are as follows:

⚫ Deposits:

 Current Deposit

 Savings Deposit

 Special Notice Deposit

 Fixed Deposit Schemes

⚫ Loans & Advances:

 Agriculture Loan Programs

 Poverty Alleviation Program

 Specialized Loan Program

 Rural Credit

 Education Loan

 Working Capital Loan

 Term Loan for Large and Medium Credit Programs

⚫ Cards:

 Credit card

 Debit card

20
2.16 Services of Janata Bank Limited

Janata Bank provide several types of services to their client and build a goodwill by their effective
& efficient performance. The services are:

e-GP Payment Service

The e-GP system is a single web portal from where and through which PAs and PES will be able to
perform their procurement related activities using dedicated secured web-based dashboard. The e-
GP system is hosted in e-GP Data Center at CPTU, and the e-GP web portal is accessible by the PAs
and PES through internet for their use. This complete e-GP solution introduced under the Public
Procurement Reform (PPR) Program is being supported by the World Bank and gradually used by
all government organizations. This on-line platform also helps them ensuring equal access to the
Bidders/Tenderers and also ensuring efficiency, transparency and accountability in the public
procurement process in Bangladesh.

ATM Service

To offer modern Banking service, Janata Bank Limited is providing ATM facilities with Debit and
Credit cards to the customer. Features of Janata Bank Card:

 Connected with NPSB (National Payment Switch Bangladesh).

 Running under the largest network of Bangladesh.

 Card holder can use any ATM & POS (Point of Sales) within Bangladesh.

 Mobile phone recharge & Online Tax payment facility is available.

 Minimum fees and charges.

 SMS alert service is available.

 No hidden cost.

21
Bangladesh Electronic Fund Transfer Network (BEFTN)

BEFTN facilitates the transmission of payments between the banks electronically, which makes it
faster and efficient means of inter-bank clearing over the existing paper-based system ie., BACPS. It
is able to handle a wide variety of credit transfers such as payroll, foreign and domestic remittances,
social security, company dividends, retirement, expense reimbursement, bill payments, corporate
payments, government tax payments, social security payments and person to person payments. The
system could handle debit transfers such as mortgage payments, loan payments, insurance
premiums, utility bill payments, government tax payments, government licenses and fees.

Remittance Payment System

Janata Bank Limited launched own software JB Remittance Payment System' at all its branches for
providing online Cash Deposit and Cheque Payment as well as instant payment of foreign and
inland remittances in a more secured manner to its customers. The system provides faster and
secured remittance service by using Virtual Private Network (VPN). Through this system, all kinds
of vouchers and advices are auto-generated without any kind of human intervention. Account holder
can deposit and withdraw money from any branch of Janata Bank Limited. Inland and Foreign
remittances' beneficiaries receive remittances within moments through this system.

Additional Services

 Account opening SME banking

 Western union money transfer

 Cash deposit

 Cash withdrawal

 Pay order

 Demand draft

 Prize bond

 Cheque and cards delivery

 Locker service

22
Other Service

The Profitability of the banks is based on marking of product and services. The description of
products & services are detailed in the following respective chapter. Besides these the bank also
some specialized services to its customer. These Specialized services are as follows:

 On-line Banking: JBL has introduced Real Time Online any branch banking services to its
customer. Under this service any customer can avail the following facilities-

 Cash withdrawal and cash deposit form / to his / his A/C from any branches of the bank.

 Transfer of funds instantly from his / his A/C to any other accounts maintained with any
branches of the bank.

 Telegraphic Transfer –TT: Telegraphic Transfer or Telex Transfer, often abbreviated to TT,
is a historic term used to refer to an electronic means of transferring funds overseas. A
transfer charge is collected while sending money.

 Demand Draft (D.D): This is an instrument through which customer‟s money is remitted to
another person/firm/organization in outside the clearinghouse area from a branch of one
bank to an outstation branch of the same bank or to a branch of another bank (with prior
arrangement between that banks with the issuing branch).

 Payment Order / Pay Order (P.O): This is an instrument issued by the branch of a bank
for enabling the Customer/Purchaser to pay certain amount of money to the order of a
certain person/firm/organization/office within the same clearinghouse area of the pay order-
issuing branch.

 Remittance Service: Correspondences arrangement with more than 330 Financial

Institutions all over the World.

23
2.17 Banking in Bangladesh of JBL

Economy of Bangladesh is in the group of word's most underdeveloped economics. One of the
reasons may be its underdeveloped banking system. Modern banking system has been playing a
vital role for a nation's economic development of JBL. Over the last few years the banking world
has been undergoing a lot of change due to deregulation, technological innovations, globalization
etc. These changes also made revolutionary changes of a country's economy. JBL is well recognized
that there is an urgent need for better qualified management & better-trained staff in the dynamic
global financial market. Bangladesh is no excepting in that trend. Banking sector in Bangladesh is
facing challenges from different angles though its prospect is bright in the future. Banks are the
mainstay of the financial system of a country of a country like Bangladesh. Because of close
relationship between economic and financial development, the banking system must be robust,
resilient and sound for efficient inter-mediation of financial resources. For this required sound and
prudential financial regulations. Although our banking sector is so strong and healthy, the role
played by it in our economy is remarkable. Banking sector of Bangladesh exhibited a resilience
performance in spite of comparative economic sluggishness. It has been playing a vital in the
economy by providing credit for performing economic activities and at the sometime conglomerate
the surplus capital from general public through different types of depository incentives. But for the
sound lending management, appropriate strategies and well planned are required. In the recent year,
Government has taken initiatives to reform in financial sector, such as maintaining discipline in
banking sector, steps for prevention of money laundering, loan write-off policy and effective
measures to gain accountability and transparency in banking sector. These timely steps have made
the banking operations more transparent, acceptable and modern. As a result, the image of banking
sector has been elevated.

2.18 Branch Network of JBL

Janata Bank is one of the largest Nationalized Commercial Bank of Bangladesh The Branch
network of the Janata Bank Limited is quite strong. These branches are situated at various
strategically important commercial and industrial locations in the country. The above branch
network is expected to be sufficient to maintain required growth rate of the bank. Janata Bank have
1050 branched in various prime area of the country, in 2014.

24
2.19 Achievement of International Award JBL

Recently The Bank has been recognized internationally and domestically for it's good performance.
International Award -"World's Best Bank Award-2009 in Bangladesh Janata Bank Limited was
awarded Best Bank-Bangladesh in the Global Finance, World's Best Bank Awards, 2009 by New
York based Financial Magazine "Global Finance". "Global Finance" has identified winning banks
based on number of criteria including growth in Assets, Profitability, Strategic relationships,
Customer Service, Competitive pricing and innovative products. International Award -"World's
Best Bank Award-2008 in Bangladesh Janata Bank Limited was awarded Best Bank-Bangladesh in
the Global Finance, World's Best Bank Awards, 2008 by New York based Financial Magazine
"Global Finance". "Global Finance" has identified winning banks based on number of criteria
including growth in Assets, Profitability, Strategic relationships, Customer Service, Competitive
pricing and innovative products. International Award -"World's Best Bank Award-2007 in
Bangladesh Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance,
World's Best Bank Awards, 2007 by New York based Financial Magazine "Global Finance".
"Global Finance" has identified winning banks based on number of criteria including growth in
Assets, Profitability, Customer Service, Product innovation and Advanced Technology.
International Award -"World's Best Bank Award-2006 in Bangladesh Janata Bank Limited was
awarded Best Bank-Bangladesh in the Global Finance, World's Best Bank Awards, 2006 by New
York based Financial Magazine "Global Finance". "Global Finance" has identified winning banks
based on number of criteria including growth in Assets, Profitability, Customer Service, Product
innovation and Advanced Technology. Besides the above mentioned awards, Janata Bank has
achieved numerous awards from the beginning of its establishment.

2.20 Management

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

25
 2.21 Number of Branches of JBL

SL. Name of Address SL. Name of Address

Area Office Area
Office
01 Faridpur Faridpur Area Office, 08 Khulna Khulna Janata Bank
Khan Mansion, Bhaban
Mujib Road 8, K.D.A. Commercial
Faridpur Area
Tele: 2709 Dist - Khulna
Postal Code - 9100
Tele : 722247, 724413
02 Mymensing Mymensing Area 09 Kushtia 18/25 Raja Pramad
Office44,K.C. Bhushan Dev Roy Road
Roy Road, P.O:Mohini Mills
P.S. Qutuwaly P.S: Kushtia
Dist. Mymensing Dist.: Kushtia
Phone -54769, Post Code : 7001
55744 Tele: 54243, 53059
03 Jamalpur [Link] Road 10 Bogra Area Office,
P.S. Sadar Gohail Road
Dist. - Jamalpur Dist. - Bogra
Postal Code.2000 Tele---6624, 3449, 5415
Tele - 3542, 3018
04 Narayangonj Post Box No--13, 11 Dinajpur Maldahapatti
Bangabandhu road, Dist. - P.O. - Dinajpur
Narayangonj P.S. - Kotwali
Tele:7633924,7633925 Dist. -Dinajpur
Postal Code : 52
Tele : 4507 , 5110
05 Tangail Pradhan Sarak 12 Pabna Court Road, Pabna
P.O - Tangail Post Code : 6600
P.S - Tangail Telephone: 6366, 6368,
Dist - Tangail 5172
Postal Code -1900
Tele-54231,53732
06 Noakhali Area Office, Noakhali 13 Rajshahi AreaOffice,Rajshahi
P.O. - Noakhali Kakoli House
P.S..- Noakhali Sadar 97/85, Greater Road
Dist - Noakhali Kazihata, Rajshahi
Postal Code : 3800 Post Code : 6000,
Tele : 5643, 5616 Tel-774570, 9003491
07 Jessore Jess Tower
39 - [Link]
P.O. - Jessore
P.S. - Jessore Sadar
Dist. - Jessore
Postal Code - 7400
Tele: 73447, 6041

Table 03: Number of Branches Janata Bank 26

Source:[Link]
2.22 Interest Rate of JBL

Janata Bank diversified its rate of interest on loan and advances in compliance with the interest rate
policy declared by the government in 2005. To encourage the agricultural sector the rate of interest
fixed to 2.0-16.0 percent and to increase the rate of industrial production and services industry, the
rate of interest rate is fixed to 9.0-11.0 percent and 13.0 percent.

Rate of interest of Janata Bank is given below:

Deposit Loan and Advance

Year Savings Short Fixed Current Agricultural Industrial Consumer
Account term deposit account sector sector loan
deposit account
account
2010 5.00 % 3.50 % 7 - 8% 00 2 - 8% 12 - 14% 14%

Table 04: Interest rate of Janata Bank

Source: [Link]

2.23 Library Facilities of JBL

With the objective of enriching knowledge and efficiency of the officers and staff of Janata Bank, it
has a central library. Library is situated in 06th floor of its Head Office Building. It has turned into a
modern library by extending its facilities. It has been enlarged with the latest books on banking,
Foreign Exchange, Computer, Management, Accounting, Agriculture, Finance, Economics,
Religion, Literature and many other disciplines

2.24 Training

Janata Bank Training Institute 107/2, kakrail Dhaka-1000, training institutions in Rajshahi, and
comilla have been conducting training program covering total banking activities in order to impart
training to all categories of officers and staff of Janata Bank.

27
2.25 Government Intervention

Financial services have traditionally been the subject of close government scrutiny and it is
expected that exchange rates, interest rates and terms of credit should be monitored in the public
interest. In recent years governments have tried to use interest rates, credit regulations and informal
controls on banks as a means of managing the supply of money in the economy in an effort to
increase or reduce consumer spending and to hold or promote investment in business. From 1976 to
now, these policies have added a new dimension of risk and uncertainty to financial markets, which
have already fluctuated for various reasons such as inflation, exchange rate, oil crisis etc.
Sometimes government is a big problem for the nationalized bank in Bangladesh. Government
forced to the nationalized bank to lend to government’s priority sector, state-owned sectors, state-
owned enterprises, sick industries, borrowers with political influence as well as provide exemption
schemes to fulfill its pre-election commitment. The loan exemption program of 1986-87 and 1991-
92 are 11.37% and 25.56% respectively of total bank loan outstanding. As a result nationalized
commercial banks are burdened with very large classified loans (32% of total loans) against which
very large provisions are made which affect profit position very adversely. Classified loan in the
country’s banking sectors on June 30, 1996 was 33.0% of total loans. It was 34.9% on December
31, 1993. Net income of local bank is reduced drastically for maintaining very large provisions for
bad debts and interest suspense accounts.

2.26 Computerization

Janata Bank starts its computerization process at December, 1989. After that it expands its
computerization process by establishing RISE system (RS 16000) OS/2, LAN etc. Up to this month
139 branches are computerized system. Besides this, ‘One Stop’ is being given in its 23 branches.
Moreover, Janata Bank is serving to the customers in the following ways:

 It has established Janata Exchange Company Srl. 100% owned subsidiary company of
Janata Bank Limited established in 2002. JEC sends money from Rome through Electronic
Fund Transfer ( EFT ) system by which Beneficiaries at Dhaka city get remittances on the
next working day of remittances from Rome & Milan. Beneficiaries at other 63 District
towns & other locations where courier services are available get remittances on the 2nd
working days of remittances from Rome & Milan. The beneficiaries, who are maintaining
accounts with other Janata Bank Limited branches in Bangladesh, will be able to withdraw
money within 1 to 3 days of sending remittances.
28
  Recently SECI established a web based remittance software in UAE.
 Janata Bank Wage Earners Corporate Branch established electronic link with its branch in
Middle East Branch through which remittance is sent. Besides this, five electronic links are
in implementation process in Oman, Qatar and Bahrain.
 IFRMS (Instant Financial Reconciliation and Massaging System) has enabled the bank to
remit fund by DD, TT and Inter Branch Debit/Credit advice. This has been started as an
experimental but this system will be started among 300 branches soon.

2.27 Personal Banking of JBL

Janata Bank Limited extends all the major personal banking facilities and services to its customers
with its skilled manpower and largest network of around 860 branches covering all the urban and
remote rural areas of Bangladesh. Janata Bank Ltd. provides Local and Foreign Remittance in the
quickest possible time. Foreign Remittance is available in both T.C and taka draft.

1. Transfer of fund from one branch to another by

- Demand Draft saving A/C
- Mail Transfer FDR A/C
- Telegraphic Transfer Trade Finance

2. Transfer of fund on Standing Instruction Agreement

3. Collection of cheques through clearing house.
4. Issuance of payment order.
5. Locker facilities for safe keeping of valuable.
6. Corporate client services with computerized systems at selective branches.

29
2.28 SWOT Analysis of JBL

Figure 03: SWOT Analysis

Each and every organization should be aware of their strengths, weaknesses, opportunities and
threats. This analysis is known as SWOT analysis. The central purpose of SWOT analysis is to
identify strategies that fit or match a company’s resources and capabilities according to the demand
of environment in which company operates. So the strategic alternatives generated by a SWOT
analysis should be built on company’s strengths in order to exploit opportunities and counter threats
and to correct weaknesses.

SWOT analysis explains environment of an organization in two broad ways. They are:

 Internal Environment Analysis: It includes strengths and weaknesses.

 External Environment Analysis: It includes opportunities and threats.

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

30
Strengths:

 Name recognition within the community.

 Large customer base.
 Community involvement/increasing presence in the market.
 Management knowledge of industry.
 Financial condition: Strong capital and asset quality.
 Regulatory performance is strong and positive.
 Fine environment inside of the branches.
 Being a nationalized banking organization, it always gets government support in all of its
operations.
 Bank has requisite wealth to sustain in the various challenges of market economy.

Weaknesses:

 Lack of technological resources as well as Internet banking.

 Lack of knowledge of customer profile.
 Insufficient focus on quality customer service and mortgage banking.
 Overall market share needs to grow Opportunities.
 Cross-selling existing customers.
 Growth in commercial business.
 Increase market share through growth of loan portfolio.
 Increased presence by means of additional ATMs.
 Niche markets (under-served ethnic markets, bank at work, etc.
 Enhanced business development in all product areas and promotion of those products.
 Strategic marketing towards customers of large merging banks.
 Attracting candidates for acquisition over the next few years.
 Potential market for internet banking.
 Initiation of concept of Firs generation Banking
 Low salary structure for the employees.
 Bureaucrat official process hampered the daily internal workflow.

31
Opportunities:

 More Experienced & Managerial know-how.

 Opportunity to expand geographically within Bangladesh.
 Customers are looking for good quality and have the willingness to bank with Janata Bank.
 Expansion of new investment areas.
 Scope for automation will open a big door of opportunity.
 In case of fund crisis Janata Bank gets government support.
 The bank undertakes need-based training program.

Threats:

 Strong community bank competition non-bank competition.

 Inefficiencies within the operations of the bank.
 Possibilities of more stringent regulations.
 Lack of appeal to younger, Student, affluent potential customers.
 Political instability of the country.
 Lack of Flexibility to adopt to any change.
 Continued deregulation and globalization.
 Increased technological innovation and technology costs to compete effectively.
 Consistent risk pricing and Basel Committee capital requirements for credit risk.
 Newly developed privatized and foreign banks.
 Loan recovery systems are very weak.
 Policies are not practiced properly.

32
 Chapter 3
Exploring Modern Banking Services of Janata
Bank Limited
3.1 Modern Banking and JBL

As a partner of the Government's 'Digital Bangladesh' strategy, the bank has focused on automation
and internet banking activities. The following table projects the growth of launching internet
banking according to administrative divisions. For performing internet banking, the bank has
launched Real time Internet Banking activities by the real time centralized internet Core Banking
System (CBS) software TEMENOS -24 (124) in 132 branches in 2014. This facility was available
in 17 branches only in 2013. Live operations in all native branches of the bank are conducted using
off-line systems. JB cheque payment and JB cash deposit system through cheque have been
developed in all inland branches by its own software. To ensure qualified customer service Janata
Bank has started computerization corporate client service and one stop service. 139 Major branches
have already been computerized and a massive computerization program is going on. Janata Bank
Limited, first among the Nationalized Commercial Banks in Bangladesh, has introduced One Stop
Service. To facilitate the foreign exchange service, Janata Bank has launched Janata bank first
among the nationalized commercial bank, has introduce ATM service system in its 12 branches.
The bank launched Website, Reuter Service, Internet Service and Ready Cash Service. The bank has
taken a plan to launch shared ATM system in various important places

Speedy foreign remittance system has been implemented in the national branch network. In all 93
branches (each administrative district being equiped with at least one such branch) are operating the
payment system of electronic Government procurement by which all types of tender fees are
collected. Central Data Centre (CDC) & Disaster Recovery Site (DRS) is going to be modernized
and made more powerful progressively. Apart from inland branches, four foreign branches are
conducting internet core banking activities. By using its own Banking Application Software "JBSoft
Banking", the bank has saved BDT 33.20 million (approx.) on procurement and BDT 1.30 million
(approx.) per month on maintenance of the software. Internet banking services of JBL. To keep pace
with time and in harmony with National and inter-National economic activities and for rendering all
modern services, JBL, as a financial institution, automated all its branches with computer networks
in accordance with the competitive commercial demand oftime. Moreover, considering its forth-
coming future, the infrastructure of the Bank has been rearranging. The expectation of all class
businessmen, entrepreneurs and general public is much more to JBL

33
3.2 Internet Baking Services of JBL

Janata Bank has introduced new services for those people who are not covered by traditional
banking services. Among these, there are services/products like internet banking (JB Remittance
Payment System) and real time internet core banking system. Bangladesh Automated Clearing
House (BACH), the first ever electronic clearing house, with its components- Bangladesh
Automated Cheque Processing System (BACPS) and Bangladesh Electronic Fund Transfer
Network (BEFTN); Society for Worldwide Interbank Financial Telecommunication etc. For your
convenience, Bank offers you the ability to access some of our products and services through the
Janata Bank Internet banking application. When you interact with us through eJanata App, we may
collect information such as unique device identifiers for your mobile device, your screen resolution
and other device settings, information about your location, and analytical information about how
you use your mobile device.

3.3 Internet Banking Security of JBL

To keep security of customer JBL and all banks follow the curricular, as like it's one of the biggest
attractions of Internet as an electronic medium is its openness and Freedom. It is a public domain
and there is no restriction on who can use it as long as one adheres to its technical parameters. This
has also given rise to concerns over the Security of data and information transfer and privacy. These
concerns are common to any network including closed user group networks. It will be sufficient to
say here that the key components of such concern are follow:

 Authentication, viz., assurance of identity of the person in deal.

 Authorization, viz, a party doing a transaction is authorized to do so.
 The privacy or confidentiality of data, information relating to any deal.
 Data integrity, viz., assurance that the data has not been altered and.
 Non repudiation, viz., a party to the deal cannot deny that it Originated the communication
or database.

34
3.4 Functional Services of JBL

In true sense internet banking is still absent in Bangladesh. Banks are providing banking services
via internet that includes:

 Account Summary: The Customer will be able to view the list of Current, Saving, Term
Deposit and Loan accounts with the current balance.

 Account Details: The Customer can choose a particular account and see the account details
including unclear fund, limit, interest accrued etc.

 Account Activities: The customer can see or print his transaction activity in a given
account for a particular period.

 Electronic Fund Transfer: The customer can transfer funds from one of his accounts to
another of his accounts within the bank.

 Standing Instructions: The customer can setup, modify or delete standing instructions for
transferring fund from one of his accounts to another account (his account or 3rd party).

 Open/Modify Term Deposit: The customer can open a term deposit by transferring funds
from one of his current or savings accounts with the bank. He can also modify the TD and
redeem/part-redeem it.

 Loan Repayments: The customer can make payment of the loan installment from his
CASA account.

 Statement Request: The customer can make a request for account statement for a required
period. The bank will manually service this request.

 Cheque Book Request: The customer can make a request for a Cheque book.

 Cheque Status Inquiry: The customer can choose an account and enter the Cheque no for
which the status should be viewed.

35
 Stop Payment Cheque: The customer can mark his Cheque leaf as stop payment.

 Interest Rate Inquiry: The customer can query on the interest rates on CASA & Term
Deposit Products.

 Foreign Exchange Rate Inquiry: The customer can query on the Foreign Exchange (FX)
Rates using this function.

 Refill Pre-Paid Card: The customer can buy a refill number for his pre-paid mobile phone
or ISP link.

 Change Password: The customer can change his Internet Banking Password using this
function.

 Letter of Credit: The customer can initiate the LC application through Internet Banking.

 Bank Guarantee: The customer can initiate the Bank Guarantee through Internet Banking.

 Limits Query: The customer can view his Loan Limits and Limits Utilization through
Internet Banking.

 Foreign exchange: Business and standard of customer services are being increased and
speed up of information flow by using the computerization system LAN (Local Area
Network) and WAN (Wide Area Network).

36
3.5 Required Physical Infrastructure for Modern Banking

Internet: The Internet is a global system of interconnected computer networks that use the
standard Internet Protocol Suite (TCP/IP) to serve billions of users worldwide. It is a network of
networks that consists of millions of private, public, academic, business, and government networks
of local to global scope that are linked by a broad array of electronic and optical networking
technologies. The Internet carries a vast array of information resources and services, most notably
the inter- linked hypertext documents of the World Wide Web (WWW) and the infrastructure to
support electronic mail.

Intranet: An intranet is a private computer network that uses Internet Protocol technologies to
securely share any part of an organization's information or network operating system within that
organization. The term is used in contrast to internet, a network between organizations, and instead
refers to a network within an organization. Sometimes the term refers only to the organization's
internal website, but may be a more extensive part of the organization's information technology
infrastructure. It may host multiple private websites and constitute an important component and
focal point of internal communication and collaboration.

Hardware: The essential hardware required to build a complete internet banking system includes:

 Personal Computers

 Servers

 Routers

 Firewalls

 Modems

 Switches

 ATM (Automated Teller Machines) booths

 POS (Point of Sale) Terminals

37
Software: For conducting internet banking operations several software are now available such as
FLEXCUBE, a banking software which enables hanks to process and store banking transaction data
and making payments through a dedicated client- server network. Different banks use different
types of software depending on the cost and other factors.

3.6 Different Types of Modern Banking Services of Janata Bank Limited

Janata Bank provide several types of service to their client and the services mention in, below:

Phone Banking: Janata bank is focused on delivering exceptional services to its customers that
would strengthen the relationship and build loyalty. In addition, Janata bank customers can also
avail a host service through automated Janata Phone Banking that lets them use their telephone
keypad to inquire about their financial balance.

Mobile Banking: Mobile banking is a term used for performing balance checks, account
transactions, payments etc. via mobile device such as a mobile phone.

SMS Banking: SMS banking is a technology enabled service offering from Janata bank to its
customers, permitting them to operate selected banking services over their mobile phones using
SMS messaging.

Internet Banking: Janata bank financial services accessed via the Internet's World Wide Web. An
Internet bank exists only on the internet, the global network of computer networks without any
"brick and mortar" branch offices. By eliminating the overhead expenses of conventional banks,
internet banks theoretically can pay consumers higher interest rates on savings than the national
average. Banks use the internet to deliver information about financial services, replace transaction
done in branch offices, which eliminates the need to build new branches and to service customers
more efficiently. Some internet banks also offer 24 hours telephone support, so customers can
discuss their needs with bank service representatives directly.

38
Telephone Banking: Telephone banking was a service provided by a financial institution which
allows its customers to perform transactions over the telephone. Most telephone banking uses an
automated phone answering system with phone keypad response or voice recognition capability. In
addition to the self-service transaction listed earlier, telephone banking representatives are usually
trained to do what was traditionally available only at the branch: loan application, investment
purchases and redemptions, check book orders, debit and replacement, change of address, etc.
Janata banks which operate mostly or exclusively by telephone are known as phone banks.

TV Banking: Janata bank, they have introduced world to an all-new way of banking. TV banking.
This pioneering initiative now enables you to get information regarding loans, accounts, deposits
and a lot more while you are watching that exciting cricket match or your favorite sitcom. Quite
certainly, TV banking has revolutionized banking by bringing it right into living room.

Corporate Banking: The online Janata Bank Limited corporate banking application provides
features to administer and manage corporate accounts online. The corporate module provides roles
such as regulator, admin, uploaded, transaction maker, authorizer and auditor. These roles have
access to the following functions:

 Manage users; define rights and transaction rules on corporate accounts. Access accounts in
several branches with a single sign-on mechanism.

 Make bill payments over the internet.

 Generate account statement.

 Enquire on transaction details or current balance.

E-Ticking: One can book their railway, air and bus tickets online through Online Janata Bank
Limited. To book train ticket, just log on to [Link] and create an ID there at if one does not have
one. And select Janata bank of Bangladesh in the payment options. One can be redirected to internet
banking site of Janata Bank Limited.

39
Bill Payment: A simple and convenient service for viewing and paying bills online are following
below:

 No more late payments.

 No more queues.

 No more hassles of depositing cheque.

Fund Transfer: The funds transfer facility enables to transfer funds within one's accounts in the
same branch or other branches. One can transfer aggregating Rs 1 lakh per day to own accounts in
the same branch and other branches. To make a funds transfer, one should be an active internet
banking user with transaction rights. Funds transfer to PPF account is restricted to the same branch.

3.7 Janata Bank Ltd. Network Design (LAN & WAN)

The Janata bank network is maintained and operated from the network operation center of the IT
division as a Hub-spoke network, where all traffic from spoke route through the central hub which
is the core router Cisco [Link] secured connectivity within the network, Janata Bank uses the
Cisco 4507R as the core switch, Janata bank uses the Cisco ASA 5520 firewall along with the
implementation of an IP Access list, for better traffic security management. For monitoring and
blocking of unexpected and harmful traffic flow, Cisco Security MARS is put in operation. AS for
Web request monitoring; McAfee web gateway comes in action. To ensure efficient and smooth
branch connectivity vendors who provide links to all branches of the bank from the head office data
center through optical fiber, radio link and VSAT. In this way, Janata bank limited is successful in
providing a high level of security for better online operations using reliable Cisco devices. An
illustrated form of this Janata bank network system is as follows-

 Physical network design

 Remote access provisions

 Configuration of network elements

40
3.8 Empirical Exploration

With the advances in technology, many banks have taken the adequate measures to ward off any
problems related to the security of Internet banking. Customers can also follow some simple
precautionary measures, like not disclosing the password and pin number to anyone, changing the
password at regular intervals and installing antivirus software to ensure security and safety of their
Internet banking transactions. Internet banking tutorials are also provided by many banks to help
familiarize people with Internet banking. So, you can avail this facility to use Internet effectively,
for making your day-to-day financial transactions.

3.9 Changes Brought in Information Technology by Janata Bank Limited

Information Technology has brought momentous transformation in the banking industry. Moreover,
information and information technology systems are essential assets of the banks as well as for
customers and stakeholders. A comprehensive IT Policy is essential for proper and lawful
development, management, maintenance, security and uses of IT assets. Janata Bank Limited has
prepared this IT Policy to use as a minimum requirement and as appropriate to the level of its IT
operation.

 In the next decade internet facility WAS provided for individuals. All Janata bank limited
branches were connected and ATMs were launched.

 Later on, Core banking proposed by the IT consultancy company.

 All foreign offices were brought on centralized solution.

 Large network is playing the role of backbone for connectivity across the country.

 Multiple service providers are providing the links -BSNL, MTNL, and reliance, Tata which
are making the system errorless and provide high speed.

 Multiple technologies to support the networking infrastructure-leased lines, dial-up, CDMA

and VSAT.

41
3.10 Advantages of Modern Banking

The development in the financial sector allows exploring various online services by the traditional
banks. The banking sector is working to enhance customer service by providing them online
banking services. It is also known as virtual banking that allows the customers to conduct online
services by using the internet and the other advantage are given below:

 Convenience: Unlike your corner bank, online banking sites never close, they are available
24 hours a day, and seven days a week and they are only a mouse click away.

 Transaction speed: Online bank sites generally execute and confirm transactions at or
quicker than ATM processing speeds.

 Efficiency: You can access and manage all of your bank accounts, including IRAs, CDs,
even securities, from one secure site.

 Effectiveness: Many online banking sites now offer sophisticated tools, including account
aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage
all of your assets more effectively.

 Effectiveness: Many online banking sites now offer sophisticated tools, including account
aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage
all of your assets more effectively. Most are also compatible with money managing
programs such as Quicken and Microsoft Money.

3.11 Disadvantages of Modern Banking

Modern banking has various advantages which improves the banking system but there are
disadvantages of using internet banking. These are as follows:

 Learning curve: banking sites can be difficult to navigate at first. Plan to invest sometime
and read the tutorials in order to become comfortable in virtual lobby.

 Bank site changes: Even the largest banks periodically upgrade their online programs,
adding new features in unfamiliar places. In some cases, one may have to re-enter account
information.

42
3.12 Modern Banking Components

On line banking systems can vary significantly in their configuration depending on a number of
factors. Banks should choose their internet banking system configuration. including outsourcing
relationships, based on four factors:

 Strategic objectives for on line banking

 Scope, scale, and complexity of equipment, systems, and activities.

 Technology expertise; and.

 Security and internal control requirements.

Banks may choose to support their on-line banking services internally. Alternatively, Banks can
outsource any aspect of their on-line banking systems to third parties. The following entities could
provide or host (ie., allow applications to reside on their servers) on line banking-related services
for banks:

 Another financial institution.

 Internet service provider.

 Internet banking software vendor or processor, Core banking vendor or processor.

 Managed security service provider.

 Bill payment provider.

 Credit bureau, and

3.13 Required Equipment for Modern Banking

In order to use modern banking, need a computer and web browser, a member number and an online
banking PIN. The PIN is the confidential personal identification number one can use to access one's
account through online banking. One should be responsible for the installation, maintenance and
operation of computer browser and software. Solidarity Community Federal Credit Union is not
responsible for any computer virus or related problems that may be associated with the use of an
online system.

43
3.14 Cost volume profit analysis

The main benefits of internet banking are the amount of time thus money it saves. Although internet
banking is restricted to managing account and making internet transactions, it cuts out much of the
needs to personal visit to bank. Using internet banking will also increase the efficiency of paying
money bills, debt and wages as it reduces the need for writing and sending cheque, where it can take
five days to take clear. Wages and salary payments are also easy with this. Internet banking is able
to offers customers higher interest rates than high street banks due to their reduced overhead.
Though internet banking of JBL has taken an investment of more money but now operating expense
will be much lower. Again, also customers will be satisfied through fast, accurate, east to use and
comprehensive delivery of services.

3.15 SWOT Analysis

To find out the rationality of a product we must perform a swat analysis of this product and services.
This wills analysis the strength, weakness, opportunity and threats of the particular services or
product. To analysis the performance of internet banking of JBL we the following analysis is
considered.

Strengths

 JBL has made consortium with other banks through Q-cash and provided a combined ATM
service.

 Therefore, customers are able to use the ATM of other banks made consortium with JBL.

 Real time online banking and use of OMIS as ERP brought a new dimension in the field of
internet banking of JBL.

 A well-constructed website with necessary information attracts customers to get involved

with JBL.

 Low operational cost to provide banking service.

44
Weaknesses

 Technology One of the major weaknesses of Janata Bank Limited is the technology used by
the bank.

 Promotion when an employee gets a promotion to the next level, he/she gets more
compensation. Janata Bank Limited is regular in giving promotion but the employees get
later effect of this promotion.

 Janata Bank Limited has its own training institute PBTI (Janata Bank Training Institute) to
strengthen the capabilities of human resources. However, there is a lack of specific training
for specific jobs.

 Small number of ATM available by the bank of its own.

 Lack of services available by JBL.

 Lack of skilled manpower in this field of banking.

Opportunities

 Banking Software of quality service providing is a major goals of Janata Bank limited.

 Number of the user of internet banking is increasing day by day.

 Technologies and expertise are increasing in the ICT sector.

 Cost of internet is reducing as a result of technological development.

 Government is making rules and regulations and necessary security steps to reduce security
threats.

Threats

 Recent criminal attacks on ATM reduce the reliability of the customers.

 The hackers are also threat to the internet banking. Where the internet banking password and
information are not secured the security of money is at risk.

45
3.16 Percentage of Most Lucrative Online Service of JBL

12%
13%
20%
Electronic money
Debit card
Credit card
29% 26%
ATM
Point of sales

Figure 04: Percentage of Most Lucrative Online Service of JBL

Source: [Link]

From the above graph we see that among all services, people mostly use the debit card service, then
debit card, electronic money, credit card and last of all they use the point of sales services.

46
3.17 Modern Banking Problems of JBL

Modern Banking plays a vital role to develop our financial & economic structure. It has some
problems also that may reason for slow growth of advancement. The problems are given below:

 Lack of infrastructure: In JBL banking systems, IT and infrastructure are not as well so
good and developed. JBL has no digital database system and service is also underlined.
Because of this, customers will not get right service and maintenance to their account
service with securely.

 Unavailability of ATM Booth: There is scarcity of ATM booth in all places. It creates high
dissatisfaction in customer mind.

 Shortage of fund in ATM Booth: Most people complain that there is low money reserve in
ATM Booth sometimes they find empty.

 High service charge: Online Banking charge is too high and it is still out of reach among
the middle class and lower-class family.

 Technological problem: There are some technological problems such as show empty of
own account money, PIN code rejection, Database cannot be support in the system etc.

 Shortage of Branch: Branches are not available so especially business people face
problems.

 Securities problem: Some people cannot rely on online banking. They feel less security on
online Banking.

 User of online banking: Number of users are low rather than other bank user on online
banking.

 Limited Areas: This bank provide online banking service in some specific areas.

 Training and Development: Employees are not well trained in online banking.

47
 Lack of knowledge of use: For carrying out Internet banking properly, a basic knowledge
of computers and the Internet is required, which limits the number of people willing to avail
this facility. Many people, who are not comfortable with computers and the Internet, often
find it difficult to use Internet banking. Therefore, for beginners, Internet banking is really
time-consuming. In addition to this, people also find a difficulty in trusting a completely
mechanized system like Internet banking, in case of financial matters. In many instances, a
simple mistake, like clicking a wrong button, may create a big problem. And so, many
individuals often keep wondering if they have properly executed the transaction But JBL has
no training and development opportunity for the customers to take better service.

 Problem of integration: Problems are also listed in the availability of system integration in
the process. Incompatibility between e banking applications and legacy systems means that
most banks require middle wear to integrate these systems. System integrations has been and
is still, to some extant a key barrier in e banking. Shortcomings the technologist
infrastructure is often the biggest problem and also here include integrations of system.

 Negative customer perception: Another big problem is that most of the customers feel
unsecured to make their transaction because when they make transactions this report also go
to the internet service provider and this will hamper their secrecy and as perspective of
Bangladesh our banking system have no individual service protocol.

 Small number of services: Actually, internet banking service of JBL is not so aborigine.
They are now just providing services of bank transfer, balance check, make payment and
especially fund disbursement is not possible now here. These are the simple functions they
are now performing. Also, they are not using http server to secure this service and they
haven't yet provided customer training for getting the services clearly and easily.

48
3.18 Types of Risks Associated in Internet Banking of JBL

A major driving force behind the rapid spread of internet banking all over the world is its
acceptance as an extremely cost-effective delivery channel of banking services as compared to other
existing channels and it applying same condition in Bangladesh. However, Internet is not an
unmixed blessing to the banking sector. Along with reduction in cost of transactions, it has also
brought about a new orientation to risks and even new forms of risks to which banks conducting o
banking expose themselves. Regulators and supervisors all over the world are concerned that while
banks should remain efficient and cost effective, they must be conscious of different types of risks
this form of banking entails and have systems in place to manage the same. An important and
distinctive feature is that technology plays a significant part both as source and tool for control of
risks. Because of rapid changes in information technology, there is no finality either in the types of
risks or their control measures. Both evolve continuously. The thrust of regulatory action in risk
control has been to identify risks in broad terms and to ensure that banks have minimum systems in
place to address the same and that such systems are reviewed on a continuous basis in keeping with
changes in technology. In the following paragraphs a generic set of risks are discussed as the basis
for formulating general risk control guidelines, which this Group will address. An Internet bank
exists only on the Internet, the global network of computer networks without any "brick and mortar"
branch offices. By eliminating the overhead expenses of conventional banks, Internet banks
theoretically can pay consumers higher interest rates on savings than the national average. Banks
use the Internet to deliver information about financial services, replace transactions done in branch
offices, which eliminates the need to build new branches, and to service customers more efficiently.

3.18.1 Operational Risk: Operational risk, also referred to as transactional risk is the most
common form of risk associated with 1-banking. It takes the form of inaccurate processing of
transactions, non-enforceability of contracts, compromises in data integrity, data privacy and
confidentiality, unauthorized access/ intrusion to bank's systems and transactions etc. Such risks can
arise out of weaknesses in design, implementation and monitoring of banks' information system.
Besides inadequacies in technology, human factors like negligence by customers and employees,
fraudulent activity of employees and crackers/hackers etc. can become potential source of
operational risk. Often there is thin line of difference between operational risk and security risk and
both terminologies are used interchangeably.

49
3.18.2 Security Risk: Internet is a public network of computers which facilitates flow of
data/information and to which there is unrestricted access. Banks using this medium for financial
transactions must, therefore, have proper technology and systems in place to build a secured
environment for such transactions. Security risk arises on account of unauthorized access to a bank's
critical information stores like accounting system, risk management system, portfolio management
system, etc. A breach of security could result in direct financial loss to the bank. For example,
hackers operating via the Internet could access, retrieve and use confidential customer information
and also can implant virus. This may result in loss of data, theft of or tampering with customer
information, disabling of a significant portion of bank's internal computer system thus denying
service, cost of repairing these etc. Other related risks are loss of reputation, infringing customers'
privacy and its legal implications etc. Thus, access control is of paramount importance. Controlling
access to banks' system has become more complex in the Internet environment which is a public
domain and attempts at unauthorized access could emanate from any source and from anywhere in
the world with or without criminal intent. Attackers could be hackers, unscrupulous vendors,
disgruntled employees or even pure thrill seekers. Also, in a networked environment the security is
limited to its weakest link. It is therefore, necessary that banks critically assess all interrelated
systems and have access control measures in place in each of them. In addition to external attacks
banks are exposed to security risk from internal sources e.g., employee fraud. Employees being
familiar with different systems and their weaknesses become potential. security threats in a loosely
controlled environment. They can manage to acquire the authentication data in order to access the
customer accounts causing losses to the bank. Unless specifically protected, all data / information
transfer over the Internet can be monitored or read by unauthorized persons. There are programs
such as 'sniffers' which can be set up at web servers or other critical locations to collect data like
account numbers, passwords, account and credit card numbers. Data privacy and confidentiality
issues are relevant even when data is not being transferred over the net. Data residing in web servers
or even banks' internal systems are susceptible to Corruption if not properly isolated through
firewalls from Internet. The risk of data alteration, intentionally or unintentionally, but unauthorized
is real in a networked environment, both when data is being transmitted or stored. Proper access
control and technological tools to ensure data integrity is of utmost importance to banks. Another
important aspect is whether the systems are in place to quickly detect any such alteration and set the
alert. Identity of the person making a request for a service or a transaction as a customer is crucial to
legal validity of a transaction and is a source of risk to a bank. A computer connected to Internet is
identified by its IP (Internet Protocol) address.

50
 There are methods available to masquerade one computer as another, commonly known as 'IP
Spoofing'. Likewise, user identity can be misrepresented. Hence, authentication control is an
essential security step in any e-banking system. To keep security of customer JBL and all banks
follow the curricular, as like it's one of the biggest attractions of Internet as an electronic medium is
its openness and Freedom. It is a public domain and there is no restriction on who can use it as long
as one adheres to its technical parameters. This has also given rise to concerns over the Security of
data and information transfer and privacy. These concerns are common to any network including
closed user group networks. The Internet is a worldwide network of interconnected computer
networks that allows for unlimited data and information sharing. Because banks that use this
medium for financial transactions must have the appropriate technology and systems in place to
guarantee a secure environment for such transactions, these institutions must have the necessary
technology and systems. When an unauthorized individual has access to a bank's critical
information vaults, such as the accounting system, risk management system, portfolio management
system, and so on, a security risk arises. A breach in the bank's security might result in a
considerable and immediate loss of income. Hackers using the Internet, for example, might acquire
access to sensitive consumer data, extract it, and utilize it. They might potentially infect people with
viruses.

3.18.3 Money Laundering Risk: As Internet banking transactions are conducted remotely banks
may find it difficult to apply traditional method for detecting and preventing undesirable criminal
activities. Application of money laundering rules may also be inappropriate for some forms of
electronic payments. Thus, banks expose themselves to the money laundering risk. This may result
in legal sanctions for non-compliance with "know your customer" laws. To avoid this, banks need to
design proper customer identification and screening techniques, develop audit trails, and conduct
periodic compliance reviews, frame policies and procedures to spot and report suspicious activities
in Internet transactions.

3.18.4 Liquidity Risk: Arises out of a bank's inability to meet its obligations when they become due
without incurring unacceptable losses, even though the bank may ultimately be able to meet its
obligations. It is important for a bank engaged in electronic money transfer activities that it ensures
that funds are adequate to cover redemption and settlement demands at any particular time. Failure
to do so, besides exposing the bank to liquidity risk, may even give rise to legal action and
reputational risk.

51
An evaluate the credit worthiness of the customer while extending credit through remote banking
procedures, which could enhance the credit risk. Presently, banks generally deal with more familiar
customer base. Facility of electronic bill payment in Internet banking may cause credit risk if a
third-party intermediary fails to carry out its obligations with respect to payment. Proper evaluation
of the creditworthiness of a customer and audit of lending process are a must to avoid such risk. The
outcome of a bank's failure to fulfill its debts by the due date without suffering unacceptable
damages, notwithstanding the fact that the bank may eventually be able to meet them. The bank's
failure to pay its promises when they are due has resulted in this dilemma. It is critical for a bank
that participates in electronic money transfer operations to guarantee that sufficient funds are
available to satisfy redemption and settlement needs at all times. If this is not done, the bank may
suffer liquidity risk, as well as potential legal action and reputational damages.

3.19 Benefits of Modern Banking

Let's start off with the advantages of internet banking. First and foremost, internet banking is very
convenient. It will allow you to pay your bills and make transactions anytime during the day and the
week. The bank will never close because you can access it through your laptop or computer. So, no
matter in which country you are anywhere in the world, you can go internet and handle your
finances.

Secondly, internet banking is very fast, effective and efficient. Over the Internet, you can make
transactions that are typically executed and performed at a much faster pace than at ATM's. Internet
banking services also give you the option of handling several different bank accounts from one site
itself.

 Pay bills

 Switch money from one account to the other

 Keeping up to date with all of your latest cheque payments etc. And doing all of the other
things people does at banks in the comfort of their own home.

Most internet banking sites are compatible with programs like Microsoft Money and Quicken,
which makes management of assets more effective.

52
3.20 Performance of Exploring Modern Banking Services of JBL

The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the
Janata Bank of Bangladesh and the chief regulatory authority in the sector. The banking sector of
Bangladesh comprises four categories of scheduled banks. These are four state-owned commercial
banks (SCBs), five state-owned development finance institutions (DFIs), thirty private commercial
banks (PCBs) and nine foreign commercial banks (FCBs). The number of banks remained
unchanged at 48 in 2008. These banks had a total number of 6886 branches as of December 2008.
The number of bank branches increased from 6717 to 6886 owing mainly to opening of new
branches by the PCBs during the year.

3.21 The Most Enticing offerings Provided by JBL

The electronic money refers to a form of money that can only be traded via the use of the internet.
Computer networks, the internet, and digital storage systems are often utilized in order to
accomplish this goal. The direct deposit of cash and the electronic funds transfer system are the two
ways that electronic money may be represented. Additionally, it is a general term for the field of
financial cryptography as well as the technology that make it possible.

Cards for Credit: Credit cards may be compared to a loan that a bank provides to its customers in
the same manner that a loan would be. Credit cards give cardholders the ability to "Use First and
Pay Later" for a predetermined amount of credit in accordance with the conditions of sanction that
have been previously agreed upon. The bearer of this card has the ability to make purchases at retail
establishments and merchant facilities

Debit Cards: A debit card, similar to a credit card, allows the cardholder to pay for online
transactions using electronic monies pulled from the card holder's savings or checking account. This
card is a deposit access product that allows the user to spend his own money that is held in his bank
account via the debit card. The "Pay First and Use Later" idea underlying this card's functionality.
The logo or hologram of partnering corporations, including VISA, MasterCard, Maestro, and
Cirrus, is printed on debit cards. Other firms may also be included.

53
Automated Teller Machines (ATM): An "Automated Teller Machine" is an extension of an ATM
that takes and disburses money over the counter, similar to a teller point in a bank. These machines
are also known as cash dispensers. The functionality of an ATM is similar to that of a teller
machine; however, it is totally automated and requires simply identification in the form of a card
and a password. It does not need a slip or a check, but rather depends mostly on the ATM card and
password that is connected with the account that is being paid from. Those persons who are
qualified to receive an ATM card have been issued a password to use with their cards. This is
equivalent to the usage of a debit card. People are able to put money into their bank accounts and
then withdraw it using an ATM card, which may be used at any time of the day or night, every day
of the year. The location at which a transaction is completed is referred to as the point of sale (POS)
or checkout. The phrase "checkout" can refer to either a point-of-sale (POS) terminal. A checkout is
the electronic counterpart of a cash register. A point-of-sale (POS) Cards that may be used at ATMs
allow customers to withdraw money, deposit money, check their account balances, and deposit bills
into an existing account. The cardholder must have an open savings or checking account with the
issuing bank. At the moment the card is issued, and (PIN) number consist of four digit is given to
the customer. The cardholder is responsible for protecting the secrecy of the personal identification
number (PIN) at all times.

Figure 05: Electronic Money

54
3.22 Internet Banking Growth of JBL

Internet Banking is a product of e-commerce in the field of banking and Financial services. Banks
are also offering payment services on behalf of their customers who shop in different e-shops,
emails etc.

Year Internet banking growth

2012 13%
2013 17%
2014 19%
2015 22%
2016 27%

Table 05: Internet Banking Growth of JBL

Source: [Link]

Figure 06: Internet Banking Growth of JBL

Source: [Link]

55
3.23 Modern Banking Services Activities of JBL

JBL gives online banking services to its customers. For multipurpose communication with its
customers or other people it also uses its website. By using environmental friendly tools it is saving
the environment because it is using online services which in turns reduce the use of paper and fuel.
During 2014 in 174 branches of JBL the real time online banking has been introduced. They have
worked hard for the improvement of parallel introduction of Real Time Online Core Banking. With
the automation of branch banking the core banking software has introduced in 1998 in Nawabpur
Branch of Janata Bank. The CDC and DRS have been set up to offer the customer real time online
banking. In 914 Branches of JBL including the Head office Departments it is offering the online
banking services. Network system between CDC and DRS is progressing. They are using CBS to
meet all the services that customers want like ATM, mobile banking, POS. At 10 Divisional Offices
of JBL it has set up 10 IT maintenance and support cell.

3.24 Information of JBL On-Line

To communicate with the customers and give them information about the bank JBL always try to be
updated. That's why they have established a web-based application program which is called OMIS.
By OMIS they can regularly monitor their banking business. On weekly and monthly basis all the
branches need to submit their business information in OMIS. Management also get help from OMIS
because they can get updated information of the banks position easily and take decision according
to that information. To get information from OMIS people need to login first. Like,

56
Figure 07: Information of JBL On-Line

Source: [Link]
3.25 Modern Banking Facilities by JBL

A huge number of people use internet to communicate with others daily for a long time. Online
banking is very effective and important as world economy is growing faster. Modern Banking is a
time consuming, cost controlling way because it saves a lot of physical effort and time to the
customer. Moreover, things can be done easily that's why it is a huge benefit.

 FDR account Status

 Current/ STD account Status

 Advance Account Status

 Loan Account Status

 Allow user to change their password/ PIN

They are also planning to offer their customer some more facilities. Like,

 L/C Opening request

 A/C Opening Request

 Standing Instruction

 Cheque book issue request

 Internet A/C opening request

Janata Bank Limited offer their customers some Spot cash which is Web based.

 X-press Money

 Merchantrade

 Ria Financial Service

57
 Chapter 4
Findings, Recommendations
And Conclusion
4.1 Findings

In the internship period at Janata Bank Limited, I observed many issues in their Modern Banking
Sector. In some sector of modern banking, they doing best performance but, in some sector, they
don't capture the market for their weaknesses, so these issues are as follows:

 Janata Bank ATM booth are still not available in every place and rural areas customers suffer
it most.

 Their credit card holder doesn't get any benefits from shopping Centre or restaurant. If any
customers get many facilities from others bank cards than definitely, they are switching for
get better service.

 Janata Bank start its journey from very begging and as known as government bank they
already establish goodwill.

 Their yearly account service charge and card service charge is high from another Bank.

 They provide different beneficial scheme to their customers and influence to deposit money.

 Another big problem is that most of the customers feel unsecured to make their transaction
because when they make transactions this report also go to the internet service provider and
this will hamper their secrecy.

 Janata Bank almost have every product and services for their honorable customer's.

 In JBL banking systems, IT and infrastructure are not as well so good and developed. JBL
has no digital database system and service is also underlined. Because of this, customers will
not get right service and maintenance to their account service with securely.

 Every local area Janata Bank has their branch so that customers easily reach them.

 Arising technological problem at the time of money transfer or withdrawal money from
booth.

 Employees are not developed for providing the best modern banking service.

 High service charge online Banking charge is too high and it is still out of reach among the
middle class and lower class family.

58
  There are some technological problem such as show empty of own account money, PIN
code rejection, Database cannot be support in the system etc.

 Branches are not available so especially business people face problems.

 Some people cannot rely on online banking. They feel less security on online Banking.

 User are low rather than other bank user on online banking.

 This bank provide online banking service in some specific areas.

 Employees are not well trained in online banking.

 Lack of awareness and responsibility of the employee to provide good service to their client.

 This bank provides online banking service in some specific areas, number of users are low
rather than other bank user on online banking.

 They are not arranging training and development program for the betterment of their
employees.

 Cash shortage in the ATM booth. Sometime this problem arises, where customers put their
card for withdraw cash but there is insufficient cash to give.

 They are making this digital banking sector very complex so client is move on in different
bank.

 They are not publishing their modern banking services & facilities in paper media or
electronic media.

Although they have the ability to overcome the competitive situation and hold a strong position in
the banking industry if they resolve all their problem.

59
4.2 Recommendations

We know that Janata Bank limited is one of the famous commercial banks in Bangladesh. They
have been providing good online services which are given satisfaction and interest for its
clients/customers. They gave their clients electronic fund transfer facilities, ATM, Debit card, credit
card, POS, bill pay facilities in online etc. But they have also some lacking in online banking
process. For removing lacking, they should take following steps in the online banking system-

 Increase ATM booth, spread ATM booth all over the country in important place.

 Rises Credit card acceptance in all places.

 Resolve technological problem by using latest technology. Increase customer awareness

about online banking of Janata bank. Making Service charge of online banking as low as
possibility.

 Exchange of information on threats and vulnerabilities at appropriate forums: There should

be an open-end discussion on the threats and vulnerabilities coming across the functioning
of internet banking work by the employees in the various official forums and meets.

 Increase booth cash fund, need to timely update booth case fund.

 Making online banking facilities easier and more suitable for all classes of people.

 Training and awareness among employees. It are recommended that Janata Bank of
Bangladesh should conduct various training programs for the employees, so that they will
get aware with the terms of internet banking. After such programs they can create awareness
amongst the consumers.

 Bank should anticipate and get prepared for regulatory changes their laws regarding IT or
cyber laws get change as per the need. JBL should anticipate such kind of changes and get
loaded with various plans and actions.

 Focus on identifying core competence: JBL possess some unique characteristics or positive
points in it and with the help of them it can become a leader in market.

60
4.3 Conclusion

As globally enhancing of information technology used also Bangladesh is maintaining the serial,
here Janata bank is playing a great roll with performing internet as well as modern banking and they
have taken a good position in modern banking. This containing a great beneficiary to the people but
there has something which will be cause of hemp economy and customers privacy. For that reason,
Janata bank should take many initiatives to contain free from these risks. Modern banking is making
business so much easier that any time fast I think so. Janata Bank is playing a significant part in the
performance of internet as well as Modern banking, and they have taken a good place in internet
banking as information technology around the world continues to advance. Bangladesh continues to
maintain the serial at the same time. But there is something that will be a result of this, and it has to
do with the hemp economy and customer privacy. This is a wonderful benefit to the general
population. As a consequence of this, Janata Bank ought to take a number of measures to reduce the
impact of these risks. Because using online banking makes conducting business so much simpler, I
don't believe it will be long before it becomes the norm. Modern banking should be a top priority
for them since not only does it cut operational expenses for customers and banks alike, but it also
boosts profitability for banks. Modern banking, which will follow a structure that provides superior
service, would provide convenience to clients' homes and make their lives easier. They have to
emphasize into modern banking because it will take low operating cost for both customers and
bank. With following the better service structure modern banking will reach door to door to
customers and will make customer's life easy to easier. Study states that modern banking provides
greater reach to customers. They have many strengths & opportunities to build up their market
growth, they also have lacking's and weaknesses in their banking operation and modern banking
system. so, I believe that if Janata Bank and their Modern Banking system overcome their weakness
and problems than they will be the most popular and profitable organization in the Banking industry
of Bangladesh.

61
Appendant part
 Bibliography

Books:

1) Ganguli, S. Roy SK (2019), "Generic technology-based service quality dimensions in

banking: Impact on customer satisfaction and loyalty". International Journal of Rashid, M.
"Banking sector challenges in Bangladesh". The Daily Star. 12th edition, page-253-277.
2) Humphrey, Albert (2018), "SWOT Analysis for Management Consulting". SRI Alumni
Newsletter (SRI International). 5th edition, page-54-69.
3) Kothari, C.R. (2015) "Research Methodology, Methods and Technique's", New Age
International (P) Ltd. 2d edition, page-102-105
4) Santos, J. (2013). "E-service quality: a model of virtual service quality dimensions",
Management Service Quality, 13th edition, page -233-46.
5) Santos, J. (2013). "E-service quality: a model of virtual service quality dimensions",
Management Service Quality, 13th edition, page -233-46.

Annual Reports & Websites:

 Janata Bank Limited Annual Report (2022)

 [Link]
 [Link]

62
2.18 Branch Network of JBL 24
2.19 Achievement of International Award JBL 25
2.20 Management 25
2.21 Number of Branches of JBL 26
2.22 Interest Rate of JBL 27
2.23 Library Facilities of JBL 27
2.24 Training 27
2.25 Government Intervention 28
2.26 Computerization 28
2.27 Personal Banking of JBL 29
2.28 SWOT Analysis of JBL 30-32

Chapter Three: Exploring Modern Banking Services of

Janata Bank Limited
3.1 Modern Banking and JBL 33
3.2 Internet Banking Services of JBL 34
3.3 Internet Banking Security of JBL 34
3.4 Functional Services of JBL 35-36
3.5 Required Physical Infrastructure for Modern Baking 37-38
3.6 Different Types of Modern Banking Services of Janata Bank Limited 38-40
3.7 Janata Bank LTD. Network Design (LAN & WAN) 40

3.8 Empirical Exploration 41

3.9 Changes Brought in Information Technology by Janata Bank Limited 41
3.10 Advantages of Modern Banking 42
3.11 Disadvantages of Modern Banking 42
3.12 Modern Banking Components 43
3.13 Required Equipment for Modern Banking 43
3.14 Cost volume profit analysis 44
3.15 SWOT Analysis 44-45
3.16 Percentage of Most Lucrative Online Services of JBL 46
3.17 Modern Banking Problems of JBL 47-48

vii