Somrat final 2 by lawjuris

Chapter INTRODUCTION 1.1 REPORT PREVIEW This make a mirror for whole term paper, total papers have been divided into 5 modules. • In the first phase of the topic, the organization itself, Mission, Objective, organization structure, SWOT analyses have been discussed with restructuring & reengineering Suggestion. • In the 2nd phase of the paper, different aspects of the of General Banking have been discussed • In the 3rd phase of the paper, different aspects of financial performance have been discussed • In the 4th phase of the paper, different aspects of Personal, Corporate & International trade have been discussed • Eventually, problems; Solution & major findings have been discussed.

1.2 ORIGIN OF THE STUDY Ts is the last part of BBA program. As a professional degree it is essential to fulfill all, the requirements the program demand. Only after preparing & submitting the report this program becomes completed. Ascertainment of the Dean, Department of Business Administration Stamford University Bangladesh. I Compare this report from my practical experience I earned at the time of my internship (05 th October, 06 to 05th February 07) inJBL at Dilkusha Branch; which should be submitted on 2007.

1.3 BACK GROUND OF THE STUDY After completion of 120 credits & 06 credit hours BBA program demands a report on practical experience. To fulfil this requirement very schools of business arrange a program of internship. Here we get a chance to apply our theoretical knowledge that we acquired from class lectures, books, journals, case study, seminar, project, workshop etc & compare them with practical settings.

PURPOSE OF THE STUDY This is the most essential part of BBA program. This report is prepared as the final term paper of the degree.

1.4 OBJECTIVE OF THE STUDY The ultimate objective of the study is to gain real life exposure in the banking sector get a clear idea about banking operations; • Building habit of work & learning responsibility on the duration of internee. • Gaining knowledge about a bank source of fund. I.e. how a bank collect money from different sources. • What the implication of that.i.e. in which sector a bank invest as funds. • Matching himself with new people & environment.

SCOPE OF THE STUDY Jamuna bank is a 1st growing bank in the private sector. This report is a model of the banking services provided by JBL.

1.5 METHODOLOGY OF THE STUDY Primary Sources: ♣Discussed with top to mid level managers of Accounts Department. ♣Attended in different Inter organization seminars & meetings on different banking related issues ♣Taking Opinion from JBL stakeholders

Secondary Sources: ♣Annual Report ♣Different web sites related to JBL that is attached with the Appendices. ♣Different Documents related Accounts management that is maintained by JBL ♣Local Area Network (LAN) ♣Newspaper

1.6 LIMITATIONS OF THE STUDY There were several constraints while preparing this report; only 12 weeks were not sufficient to visit all the desks of the branch. So some desks were remained unvisited. Moreover, some officers in some desks were found non-cooperative. Such desks were remained unexposed. The branch also refuses to provide data on its performance, especially in loans and advances. It is also not possible to go to the dept of each activities of branch because of time limitation. Therefore, it was very difficult to carry out the whole analysis. 1. Major Barrier: Procedure & Policy for Accounts management is homogeneous through out the Country for all JBL branches. Even it is not possible to make slight customization. 2. Information is highly confidential. 3. Span of time is too little that is not enough to produce term paper in a proper manner. 4. Some times interns are not being treated as part of JBL that makes barrier to make proper channel when reciprocal communication is taken place

AT A GLANCE JBL ♦ About JBL ♦ Vision & Mission ♦ Capital structure & Corporate Profile ♦ Management Hierarchy

â&#x2122;Ś Branch Network

2.1 About JBL: The Bank Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Printers Building (2nd & 8th Floor), 5, Rajuk Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001. Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. Currently the Bank has 23 (twenty three) branches 10 in Dhaka, 1 in Gazipur, 4 in Chittagong , 3 in Sylhet 1 in Bogra, 2 in Naogaon, 1 in Munshigang and 1 in Narayanganj (including six Rural Branches).

The Bank undertakes all types of Banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only two years. The bank has already ranked as one of the quality service providers & is known for its reputation. Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities.

2.2 VISION To become a leading banking institution and to play a pivotal role in the development of the country.

MISSION The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

2.3 CAPITAL STRUCTURE & CORPORATE PROFILE

Jamuna bank has a sound capital base. Its authorized capital is million. It started its journey with a paid up capital of TK.390 million. The register officer of the bank is in Dhaka, Bangladesh. The sponsors of the bank are leading business personalities & reputed industrialists of the country. Md. Arifur Rahman, Chairman of the bank, is one of the leanding industrialists of the country. He is social worker & a philanthropist. The Directors of the bank are successful entrepreneurs & eminent business personalities having stake in various squints of the national economy.

THE FUTURE TRUST • • • • • • •

Full duplex on-line Banking. Introducing more innovative products & services. Opening new branches. SMS banking. Expansion of business network at home abroad. 24 hours banking Q-Cash ATM. Introduction of new liability/ Asset products.

CORPORATE GOVERNANCE As part our Bachelor degree, internship program is required to be a graduate. Internship program blends practical knowledge with the theoretical thought. This will help the students to get the corporate notion how the corporations run through different mechanism. At Stamford University this course is coded as BUS –499. Undoubtly this is very inception period of any individual’s career. As part of requirement I have completed my internship program at Jamuna Bank Limited under Accounts Department for three months, which equipped me with different tools & mechanism that is practiced in 8

different financial service organizations through out the Country in a social responsible manner.

CORPORATE CULTURE Employees of JBL share certain common values, which helps to create a JBL culture, • The clieny comes first. • Search for professional excellence. • Openness to new ideas & new methods to encourage cretivity. • Quick decision making. • Asense of professional ethics. Besides this, own Practical understanding that is gained from the JBL is ultimate source to make out shape of this intern Chairmen paper Board of director Managing director Deputy managing director

Executive vice president Senior vice president Vice president Senior assistant vice president

Assistant vice president Senior Principal Officer

2.4 Management hierarchy:Principal Officer Senior Officer

Officer Junior Officer 9 Astt. Officer

2.5 Branch Network 10

01. Mohakhali Branch ,Dhaka Ismail Mansion 32 Mohakhali C/A, Dhaka PABX: 9887269, 9889273-4 SWIFT: JAMUBDDH035

Branch Manager: Mr. Khorshed Ahmed Nayeem Vice President 02. Sonargaon Road Branch,Dhaka 1/G, Free School Street Sonargaon Road, Kawran Bazar, Dhaka Tel: 9669206,9677049 PABX : 9670655,9677050 SWIFT: JAMUBDDH039 Branch Manager: Mr. Md. Mahboob Alam Choudhury Vice President 03. Moulvibazar Branch, Dhaka Mustaquim Mansion

77/3, Moulvibazar, Dhaka. Tel: 7315965, 7315974-5 PABX : 7315025, 7315026 SWIFT: JAMUBDDH036 Branch Manager: Mr. Md. Belal Hossain Senior Asstt. Vice President 04. Agrabad Branch, Chittagong Jahan Building No. 4 76-77, Agrabad C/A, Chittagong Tel: (031) 813272, 710071 PABX : (031) 727727 SWIFT: JAMUBDDH038 Branch Manager: Mr. Kazi Fariduddin Ahmed Senior Executive Vice President 05. Dilkusha Branch, Dhaka 33, Dilkusha Commercial Area

Dhaka-1000 Tel: 9555548 PABX : 9551419, 955795, 9565608 SWIFT: JAMUBDDH037 Branch Manager Mr. Sk. Ruhul Amin Executive Vice President 06. Goala Bazar Branch, Sylhet New Plaza, Goala Bazar Osmani Nagar, Balaganj, Sylhet PABX: (08222) 87352-3 Branch Manager: Mr. Chowdhury Reza Shahzaman Mahmud Assistant Vice President 07.Beani Bazar Branch ,Sylhet Fatehpur, Union 6 Beani Bazar Beani Bazar, Sylhet Phone: 08223 - 88022 Branch Manager: Mr. Harunoor Rashid Assistant Vice President 08. Sylhet Branch , Sylhet Sahir Plaza, 7647, Zinda Bazar Kotoali, Sylhet Tel: 725239 PABX: 0821-725409 Branch Manager: Mr. Md. Fazlul Jalil Vice President 09. Shantinagar Branch , Dhaka 41/B, Chamelibag Shantinagar, Dhaka Tel: 8355649 PABX: 8355179, 9358194, 9358157 Branch Manager: Mr. Hassan Ali Executive Vice President 10.Gulshan Branch, Dhaka Land View Commercial Centre 28, Gulshan North C/A (2nd Floor)

Gulshan Circle-2 Dhaka-1212 Tel: 8860350

PABX: 8861281, 8852540 SWIFT: JAMUBDDH043 Branch Manager: Mr. Quzi Mamun-Ul-Ashraf Vice President 11. Dhanmondi Branch, Dhaka House –17 (Ground Floor) & 17/A (1st Floor) Road –6, Dhanmondi R/A, Dhaka

Tel: 9676553 PABX: 8613920, 8626044 Branch Manager: Mr. Md. Raja Miah Senior Asstt. Vice President 12. Nayabazar Branch (Islamic Banking), Dhaka 10/3 Malitola North South Road Bangshal, Dhaka-1100 Tel: 9553977 PABX: 7176799 SWIFT: JAMUBDDH040 Branch Manager: Mr. Mofazzal Hossain Senior Asstt. Vice President 13. Naogaon Branch, Naogaon 247, Sadar Road, Naogaon Tel: 0741-61840 SWIFT: JAMUBDDH044 Branch Manager: Mr. Fazle Elahi Chowdhury Senior Asstt. Vice President 14. Mohadebpur Branch, Naogaon Mohadevpur, Naogaon Tel: 88-07426-75137 Branch Manager: Mr. Mahbub Alam Asstt. Vice President

15. Khatunganh Branch, Dhaka 1575, Pathorghata, Chittagong, Tel: 031-848135 PABX: 031-625454, 811430 SWIFT: JAMUBDDH042 Branch Manager: Mr. Md. Habibul Islam Asstt. Vice President 16.Konabari Branch, Gazipur Plot # A-140&141(partial) BSCIC Industrial Area Konabari, Gazipur Tel: 9289045

Branch Manager: Mr. Syed Shakir Uddin Mohammad. Munir Senior Asstt. Vice President 17.Bhatiyari Branch, Chittagong Uttarbazar Newaz Market Bhatiyari, Shitakundu Chittagong Tel: 031-752187, 2780025 Branch Manager: Mr. Mohammad Azam First Asstt. Vice President

18. Foreign Exchange Branch, Dhaka 2, DIT Avenue (Extension) Motijheel, Dhaka Tel: 9564258 PABX: 9571365 SWIFT: JAMUBDDH045 Branch Manager: Mr. Md. Abdus Salam Senior Executive Vice President 19. Jubilee Road Branch (Islamic Banking), Chittagong Modina Tower Jubilee Road Chittagong Tel: 031-616266 Branch Manager: 14

Md. Monzurul Ahsan Chowdhury Vice President 20. Chistia Market Branch Chistia Market (Gausia Market) 393/B Elephant Road Tel: 9673742 Branch Manager: Mr. Md. Abdur Rahim Asstt. Vice President 21. Bogra Branch, Bogra Kazi Nazrul Islam Sarak Borogola Bogra Tel: 051-69834-6 Branch Manager: Mr. Md. Nazmul Hossain Senior Vice President 22. Baligaon Branch, Munshiganj Aziz Plaza, Baligaon Bazar Tongibari Munshiganj Tel: 0691-74078 Branch Manager: Mr. Md. Moazzem Hossain Junior Asstt. Vice President 23. Narayanganj Branch, Narayanganj Holding # Old: 137, New: 207 B.B. Road, Chasasra Narayanganj Tel: 7635166 Branch Manager: Mr. Muhammad Bazlul Huq Senior Asstt. Vice President 24. Motijheel Branch, Motijheel 2,DIT Avenue (Ext.) Motijheel C/A, Dhaka-1205 Tel: 9554467 PABX : 9554475

Branch Manager: Mr Md. Belayet Hossain Senior Vice President 25. Rajshahi Branch, Rajshahi 88,Shaheb Bazar (Zero Point), Rampur,Rajshahi. Tel: 0721-812568 PABX: 0721-812569-70 Branch Manager: Mr. Abrar Hossain Khan Senior Vice President 26.Bashurhat Branch,,Noakhali Bashurhat, Companygonj, Noakhali Tel: 03223-56032 PABX: 03223-56031 FAX: 03223-56043 Branch Manager: Mr. A.K.M. Mostafa Kamal Chowdhury Asstt. Vice President 27.Dhoalikhal Branch, Dholaikhal 119/B/1(New), Disttillary Road, P.S.-Sutrapur, Dhaka. Tel: 7410415 Branch Manager: Mr Md. Mansur-Uz-Zaman Senior Asstt. Vice President

AN OVERVIEW OF JBL ♦ General Banking ♦ Advance Section ♦ Foreign Exchange

3.1 GENERAL BANKING: General Banking involves the following items. They are: • • • • •

Accounts opening Clearing Remittance Accounts Cash

Account Opening What it is? Opening of an account binds the Banker & Customer & into a contractual relationship. Customer relationship establishes through opening an account. Generally who are receiving bank’s service we may call them as a customer. But bank considers them as customers who have an account with them. Banker’s his to maintain some common principles & procedures for open almost all deposit accounts. There are different types of account. We may classify, the deposits accounts based on their operation & nature of account holder. A brief discussion regarding the procedure of opening different types of account in local currency (based on nature of organization) is described as under.

NEW SCHEMES Marriage Deposit Scheme Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion. It can be a great help to the parents if there is any scope of deposit of a modest amount as per their financial capacity, which grows very fast at high rate of interest yielding a sizeable amount on maturity.

With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity.

Eligibility: •Marriage Deposit account can be opened in the name of children below the age of 18 years along with legal guardian. •For opening a marriage deposit account, maintenance a savings account with JBL is required.

Terms & Conditions: ♦ Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. ♦ If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure. ♦ Duties and taxes are payable by the customers as per government rules. ♦ The above figures are indicative only and subject to change from time to time. ♦ Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Lakhpati Deposit Scheme To become a lakhpati is a dream to most of the people of Bangladesh specially to the lower and lower middle class income group. We experience our expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the above in mind JBL has introduced “Lakhopati Scheme” which has flexibility in report of maturity and monthly installment as per affordable capacity.

♦ The above figures are indicative only and subject to change from time to time. ♦ Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Millionaire Deposit Scheme It is a dream for many small savers to become a Millionaire. The word ‘Millionaire’ is really exciting. This dream can be a reality if you have a calculated plan and strong determination. JBL has introduced ‘Millionaire Deposit Scheme’ which has flexibility in respect of period and monthly deposit as per your affordable capacity for giving a sum of Tk.1.00 (one) million i.e. Tk.10 (ten) lac at a time.

Eligibility: ♦ Millionaire Deposit account can be opened at any Branch of JBL For opening a millionaire deposit account, maintenance a savings account with JBL is required. Customer can deposit monthly installment through any of our online branches Under standing instruction system, Customer can deposit money automatically his accounts.

Terms & Conditions: 1. Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. 2. If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. 3. Duties and taxes on the deposit, if any, are payable by the customers as per government rules. 4. The above figures are indicative only and subject to change from time to time. 5. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Kotipati Deposit Scheme: To become ‘Kotipati’ is simply a dream for the most of the populace of Bangladesh. It is realizable for high income group who have strong determination and savings habit. If you decide and plan to save money from your regular income, you can own Tk1.00 crore easily by making a planned savings. In this regard, JBL has introduced “Kotipati”

Deposit Scheme” offering the savings plan fit to your income and to execute your dream to be a Kotipati by monthly deposit at your affordable capacity. You can take advantage of the “Kotipati Deposit Scheme” from JBL and plan for your golden future accordingly.

Eligibility: •Kotipati Deposit account can be opened at any Branch of JBL. •For opening a Kotipati deposit account, maintenance a savings account with JBL is required.

Terms & Conditions: •Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive instalments. •If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. •Duties and taxes on the deposit, if any, are payable by the customers as per government rules. •The above figures are indicative only and subject to change from time to time. •Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Education Savings Scheme Education is a basic need of every citizen. Every parent wants to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should be pre-arrangement of fund to ensure higher education of the children. Otherwise higher education may be hindered due to change of economic condition, income of the parents at the future time when higher education shall be required. Today’s higher education is becoming expired day by day. Parents can get relief and can have peace of mind if they can arrange the necessary fund for higher education of their children. As such, JBL has introduced ‘Education Savings Scheme’ which offers you an opportunity tobuild up your cherished fund by monthly deposit of small amount at your affordable capacity or initial lump sum deposit to yield handsome amount on a future date to meet the educational expenses. Under this Scheme you have the different attractive options to avail the future benefit i.e. withdrawal of the total amount accumulated in lump sum or withdrawing monthly benefit to meet educational expense keeping the principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Savings Plan and Benefit: Note: i. Duties and taxes are payable by the customer as per government rules. ii. The customer has the option for withdrawing total accumulated amount including principal on maturity date at a time or taking monthly benefit during the next 5(five) years after maturity encashing principal deposit and interest. Note: i. Duties and taxes are payable by the customer as per government rules. ii. The customer has the option for withdrawing total accumulated amouincludin principal on maturity date at a time or taking monthly benefit during the next 5(five) years after maturity encashing principal deposit and interest or monthly benefit during the next 5(five) years from the date of maturity keeping the principal deposit amount intact.

Eligibility: • Education Savings account can be opened in the name of children below the age of 18 years along with legal guardian. • For opening a education savings account, maintenance a savings account with JBL is required.

Terms & Conditions: • Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. • If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure. • Duties and taxes are payable by the customers as per government rules. • The above figures are indicative only and subject to change from time to time. • Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Monthly Benefit Scheme (MBS) Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons having ready cash and desiring to have fixed income on monthly basis out of it without taking risk of loss and without encashing the principal amount. This scheme offers highest return with zero risk. You can plan your monthly expenditure with the certain monthly income under the scheme. Note: Government tax and other charges, if any are included with the above benefit/figure.

How to apply: You have to open an account with any branch of JBL. The above noted monthly benefit will be deposited in this account in each month.

Eligibility: • Any person having age of above 18-years can participate in this scheme through opening a savings or current account with any branch of JBL • Customer must be Bangladeshi Nationals/Citizen. • Persons below 18-years of old may open this account with his/her legal guardian

Characteristics: •Minimum deposit: Tk.1 (one) Lac •Maximum deposit: Any amount multiple of Tk.1 (one) Lac •After opening the account, the profit element will be deposited in that account •Upon maturity the term may be renewed for the next tenure.

Overdraft facility: The concerned customer can avail loan facility upto 80% of the initial deposit.

Terms & Conditions: •Bank reserves the right to change the rate of profit during the tenure of deposit. •No loan facility will be allowed from any other Bank(s)/Financial Institution against the deposited amount except JBL. •The initial deposited amount and term shall not be changed before maturity. •If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. •Duties and taxes on the deposit, if any, are payable by the customers as per government rules. •Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Double/Triple Growth Deposit Scheme For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL has introduced Double/Triple Growth Deposit Scheme that offers you to make 24

double/triple your money within 6(six) years and 9.5 (nine and a half) years respectively resulting a high rate of interest.

Characteristics: •Minimum deposit:Tk.1(one) lac •Maximum deposit:Any amount multiple of Tk.1(one) lac

How to apply: You have to open an account with any branch of JBL having deposit of the above figure.

Overdraft facility: The concerned customer can avail loan facility upto 80% of the deposited amount.

Terms & Conditions: •Bank reserves the right to change the rate of profit during the tenure of deposit. •No loan facility will be allowed from any other Bank(s)/Financial Institution against the deposited amount except JBL. •The initial deposited amount shall not be changed before maturity. •If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. •Duties and taxes on the deposit, if any, are payable by the customers as per government rules. • Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Monthly Savings Scheme (MSS) Savings is the best friend in your bad days. Small savings can build up a prosperous future. Savings can meet up any emergencies. JBL has introduced Monthly Savings Scheme (MSS) that allows you to save on a monthly basis and get a handsome return upon maturity. If you want to build up a significant savings to carry out your cherished dream, JBL MSS is the right solution. 25

Eligibility: • MSS account can be opened at any Branch of JBL. •For opening a MSS account, maintenance a savings account with JBL is required.

Facility: •The concerned customer can avail loan facility upto 80% of the deposited amount. •The can deposit the monthly instilment at any branch of JBL and the same through online banking. •Monthly installment can be automatically collected from your savings account maintained with JBL. • Customer can choose any day of the month as installment date.

Terms & Conditions: •Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. • If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. • Duties and taxes on the deposit, if any, are payable by the customers as per government rules. • The above figures are indicative only and subject to change from time to time. • Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. • No loan facility will be allowed from any other Bank(s)/Financial Institution against the deposited amount except JBL.

Documents required: • • •

Declaration from customer regarding liability with other Banks & Financial Institutions. Declaration from customer regarding loan default status Documentation as per usual Bank practice.

Others: • •

Customers may visit any of the Branches and discuss with Manager/Customer Services Desk. Customer shall have to open a Savings/Current A/C with any of the JBL Branches unless already maintain an A/C relationship.

• • • • •

Repayment has been made simple which can be automatically debited from the A/C. Customers Need to maintain / deposit money to meet installment payments. Prepayment of Loan is allowed with no Penalty fees, However, no Partial payment shall be allowed. Full identification of the Account introducer shall be maintained. Failure to make three consecutive installments will result in immediate follow up action including contacting the guarantors and serving notices.

Clearing CLEARING DEPARTMENT: Accounts section deals with the income and expenditure of the branch and stores each and every transaction of the bank. The accounts officers check all the paper works like bills, vouchers, checks and deposit slips every day. They also prepare a supplementary sheet. Supplementary sheet is prepared for bank’s transaction security to avoid any fraud or misguidance. A Principal Officer is designated in Dilkusha Branch as the account officer in-charge of the department. Supplementary sheet consists of three heads such as General, Transaction with client’s income and expenditure. Error: Reference source not found

Inward Clearing Inward clearing involves clearing Cheques/DD/PO, which come to the JBL, Dilkusha branch through clearing louse for collection. The clearing officer receives then enters

them in the inward logbook. Then sends them to the computer section for checking the account condition. If any problem is found with the instrument, it is marked as ‘dishonored’ mentioning the reason as mentioned above and he sends to the clearing officer. The clearing officer removes Cheques/DD from logbook and informs the matter to the Dilkusha branch.

Outward Clearing The cheques, PO, DD of different banks, which are submitted to JBL, Dilkusha Branch, for collection, are known as out- Ward clearing cheques.The procedure is quite lengthy.

REMITTANCE Introduction Commercial bank in Bangladesh offers the facility of transferring funds, from one place to another place, to their customers as well as to the general public. Such transfer of funds can be affected either through Demand Draft or Telegraphic Transfer or Mail Transfer. The aforesaid methods of remitting money from one place to another within the country are known as Remittance, While, it is for outside Bangladesh the same is called foreign remittance. The advantage of this facility is the quick transfer of money with minimum cost and also the risk of physical transportation of cost is eliminated.

Main Key Terms Issuance & Payment of Demand Draft, Telegraphic Transfer or Mail Transfer, SDR, STOP payment & Issuance of Duplication In Stead of Lost Ones.

What’s the function of Remittance. Issue Of Demand Drafts:

 The customer is asked to complete in a form, which is treated as an application as well as voucher. The application form should be checked carefully.  Commission charge are calculated & inserted in the case provide in the form.

 The voucher given to the customer to deposit the case with the cashier.  The cashier receives the cash & delivers the voucher to remittance, department against initial in his books.  Draft is prepared & entered in drafts issued register.  The draft number is written on the voucher.  Branch wise serial number is given on the draft besides the oriented number putting on oblique between. The amount of the draft protect graphed.  Draft block &the voucher along with the register are sent to officer in charge for checking & signatures. He signs the draft & voucher & initials the counterfoil of the draft & the register.

 Then the draft & the voucher are sent to the manager / second officer for second signature.  The draft is crossed if customer desires & delivered to him against his acknowledgment on the voucher.  A memorandum is issued to the stoner if the desires.  The cheque is sent for passing & cancellation.  Telegraphic intimation under test is sent to the Drawee much for drafts of TK. 50,000/- & over in or as per the existing of the bank

Issue Of Duplicate Demand Draft:  The draft is issued marked duplicate in red ink, without altering the printed number & repeating the original number.  A note to this effect is made on the original from & the draft issues register.  Drawee branch is advised of issue of the duplicate draft.  On receipts an application from the purchase of the drafts its loss & issue of duplicate one, the signature of the applicant is verified from the original application.  On receipt of confirmation from the Drawee branch that the draft is still outstanding in their books & that caution being exercised by them, a duplicate draft is issued to the purchase after obtaining an indemnity Bond.  The Drawee branch is informed of the loss of draft & requested to exercise caution by letter or telegram as desired by applicant

Cancellation Of Demand Draft:  One receipts of application along with the demand draft for its cancellation the signature of the applicant is verified from theoriginal application from & the geniuses of the demand draft is examined.  Before the draft is cancelled it is ascertained that no duplicate draft has been issued.

 If the date of issue is in favor of a company, semi- government official, consent of the payee in writing is essential.  The Drawee branch may be advised an about the cancellation of the draft.  The cancelled draft should be attached to debit voucher along the request letter of the purchaser.

Revalidation Of Draft:  A draft like cheque becomes stales after lapse of six month from the date of issue. The purchaser of the draft may approach the issuing branch to revalidate the draft to make it payable again.  The draft should be remind & there must be no alteration in the draft.  The purchaser must give a letter in writing requesting for the revalidation of the draft. An officer should duly verify his signature on the letter.  All particulars of the draft should be compared from the draft issued register. Before the draft is revalidated it is ascertained that no duplicate draft has been issued, a note about revalidation of the letter particular draft be made in the register.  The drawee branch should be intimated about the revalidation of the draft. A note to this effect in the remark column against the relative entry in the draft payable register should be made at the drawee branch.

Payment Of Demand Draft:  Record of loss.  Record of duplicate draft.  Record of cancellation draft.  Record of revalidation.

Payment Of Open Draft:  The date, amounts in words & figures & signatures on the draft is checked.  If the draft is tested, test should be verified.  Draft together within the register is sent to the officer in charge for cancellation.  Cancellation the draft sent to cash department for payment.

Payment Of Crossed Draft:  Under N.1. Act crossed draft cannot be paid in cash, expect to a banker, who collects the same for credit to his customer’s account’s.  In case of any irregularity in the draft an advice letter is sent obtain the confirmation of the issuing branch. 30

Accounting Treatment(sale of DD) Cash /Party A/C---------------------------------------Dr. HO A/C Drawn on branch------------------------Cr. Income A/C Commission----------------------------Cr. After giving entries an IBCA is prepared. An IBCA implies the folloiwing entries: HO A/C issuing branch-----------------------------Dr. Drawn on branch-------------------------------------Cr. The IBCA is dispatched to drawn on branch. Role of the drawn on branch: After receiving the instrument, tile IBCA lodgment is done by the branch.

Accounting Teatment (after receiving an IBCA) Issuing branch A/C--------------------------------------Dr. Bills payable(DD) A/C----------------------------------Cr. When payment given, Bills payable (DD) A/C---------------------------------Dr. Customer A/C--------------------------------------------Cr. Payment is made from the suspense account if the IBCA is not reached, but the instrument has been presented. Suspense A/C---------------------------------------------Dr. Customer A/C---------------------------------------------Cr. To adjust the payment: Issuing Bank A/C-----------------------------------------Dr. Suspense A/C----------------------------------------------Cr.

Telegraphic Transfer: TT is affected by tile bank through tested telex message by secret check signal, on receipt of which tile paying officer pay the amount to the payee in cash through a telegraphic payment order or credit his account, as the case may be. Both parties must have account in Jamuna Bank Limited, as money is transferred.

Giving Payment Order (PO) The PO is used for making a remittance to the local creditors. The procedures for selling a PO are as follow:  Deposit money by the customer along with application form.  Give necessary entry in the Bills Payable register where payee’ name, address, date, PO no. amount is mentioned.  Prepared the instrument.  After scrutinized & approved the instrument by authority, it is delivered to customer. Signature of customer is taken on the counterpart & register customer’s signature part.

FOREIGN REMFITTANCE Foreign Remittance handled by the bank stood at Tk.200.25 million as of December 31, 2003, Country from which inward foreign remittance were received included UAS, UK, Canada, Japan, Taiwan, KSA etc.

Accounts How to maintain outward Bill collection (OBC) files: OBC realization file. OBC closing file.

How to prepare on line receipts & payment voucher (IBDA& / or IBCA): This type of instrument is to prepare in four pages of IBDA & / Or IBCA.

Check return posting & Inward posting: After clearing by the Bangladesh Bank clearinghouse the checks come to the branch. These checks are posted in check return & payment inward register. All jobs are related to the front deskwork & also the customer service oriented. By giving customer service a friendly & cordial relationship has been grown up with the customer. ACCOUNT TRANSFER These are internal fund transfers whereby both the debit and credit accounts are held with the bank. These entries are usually made â&#x20AC;&#x2DC;online

Cash Cash Receipts Money deposited in cash by the constituents at the cash counter of the bank excluding that of government transaction is known as bank receives (cash). Different typos of form are used for cash deposits for different type accounts. Particulars of some forms are furnished below:  Current or Savings Accounts pay in slip  Applications for Fixed Deposit Receipt  Credit Voucher  Draft or Mail transfer Application Form  Telegraph Transfer (T.T) Pay Order Application Form Called Deposit Application Form  Demand Loan Pays in Slip Step-1 The Depositor will fill up the appropriate the form properly. The concerned officer working at the General Banking Counter will initial the form relating to the new account. Step-2 Receiving the cash & voucher at the cash counter, the cash officer will count the cash correctly. Then the voucher will be branded “Cash Received” seal. Then the Assistant Cash Officer was willing the denomination of the notes & coins in the backside of the voucher. After tax Assistant officer will sign the voucher Step-3 The Cash Officer will check up the voucher & entered t6he amount in the cash receipt register & put the scroll number. Then the Officer will voucher & send to the computer department.

Step-4 The Officer computer department entry the transaction into the computer & put the posted seal & treasure on the voucher. Step-5 At the end of the transaction the Cash Officer will total the cash receipt book & the total figure should be tally with scroll maintained by the officer whose scroll will also be totaled. The physical cash received at the counter must be equal to the total figure of the scrolled

Cash Payments Banks payments include all kinds of payments excluding those of treasury sections. Extreme precautions must be taken at all levels through, which instrument like cheque, drafts, etc. are disposed. All the Instruments received at the general banking counter will be preliminary checked by the dealing officer who will enter the instruments in the respective ledger. Incase of cheque the following particulars will be scrutinized:  Date (whether post dated or entry dated)  Amount in word & in figure  Crossed or open  Bearer or order  Style of signature as available in the leisure  Prohibitory order or stop payment of cheques. The Cash Officer will follow the following procedures at the time of payments of cheques / other instruments over the cash counter Step-1 The client will submit the instruments in the computer department first. The Computer officer and cheque passing authorized officer will verify the instrument & posted the instrument. Then it will be sent to the cash counter. Step-2 After getting the instrument the cash officer will verify the instrument & if necessary the cash can tell the clients to sign in the backside of the instrument.

Step-3 Cash Officer will record the denomination of notes & coins on the backside of the instrument. Step-4 The Officer will enter the cheque in the cash payments register where the denomination of notes & coins will also be recorded. Step-5 The Cash officer will give the amount to the clients at the cash counter & tell the clients to count it immediately and if needed any quarry. Step-6 All cheques drafts, debit voucher etc must be branded with â&#x20AC;&#x153; Cash paidâ&#x20AC;? stamp with the current date. Step-7 After payment the cash department for the purpose of clean Cash Book will send the vouchers. Step-8 The head of the cash department is responsible for debit vouchers being branded with the cash paid date stamp immediately they are paid & manager must supervise him/ her in this matter as any laxity is extremely dangers

Late Payments Incase of any payments instruments must be debited in the ledger and passed in the usual manner. It will enter in the cash paid sheet in the above manner & cash book under authentication of the manager & Cash Officer. It must also be noted with late mark under initial of the manager with date. Finally all cash receipts & Payments will be taken into account to calculate the cash balance of the branch. We may take an example to clarify this. But this is to notify that, at the end of the day of the bank the amount of the cash book and the amount of the computer should be equal. Because, currently the whole banking

are being done through computer. So the clean cash of cash department supplementary of the computer must be equal.

& the

Payments & Collection of Cheques In the Banking Sector Bill of Exchange is one of the important instruments. Bill of Exchange is a n instrument in writing containing and unconditional order, signed by the maker, directing a certain person to pay on demand or at a fixed determinable future time a certain sum of money only to or to the order of a certain person or to the barrier of the instrument. But the cheque is the most important instrument in the Bill of Exchange. A cheque is a bill of exchange drawn on a specific banker & not expressed to be payable otherwise then on demand. There are two types of cheque in the bank, such as: • Cross Cheque • Collection Cheque

Cross Cheque Those which can only be paid to a banker for crediting the proceeds to the accounts of its pay is called cross cheque. Essential elements / requisites of a cheque • • • • • • •

It must be in writing It must contain an order to pay on demand or at fixed or determinable future The order be an unconditional one The drawee must be certain The sum Payable must be certain The instrument must contain an order to pay a certain sum The payee must be certain

The Payment of open cheque An open cheque may either be bearer or order. Where the chequed payable to order purports to be indorsed by or on behalf of the payee the drawee is discharged by payment in due course. Where a cheque is originally expressed to be payable to bearer the drawee is discharged by payments in due course to the bearer there of; not with standing any endorsement whether in full or in blank appearing there on and not with standing that such endorsement purports to restricts or exclude future negotiation.

Payments of Crossed Cheque Where a cheque is crossed generally the banker on whom it is drawn shall not pay it otherwise than to the banker. Where a cheque is crossed specially the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection Where a cheque is crossed specially to more than one banker except when crossed to an agent for the purpose of collection the banker on whom it is drawn shall refused payment thereof.

Reasons for Cheque Dishonor There are a lot of reasons for cheque dishonors. Some of the reasons given below • • • • • • • • • • •

Refer to drawer Not arranged for Effects not cleared may be presented again/ after days Exceed arrangement Full cover not received Payment stop by drawer Drawer signature deferred Cheque is post dated/ out of date/ Multilated/ Entry dated Amount inwards & figure deferred Alternation of date/ figure/words Other reasons

Cheque Collection There is no legal obligation on a banker to collect cheques drawn on other banks for a customer but as a practice the collection of cheques & bills on behalf of the customer has become one of the important functions of bank. A banker collecting a cheque for a customer has no better title than that of his customer a cheque belonging to another person can be held liable for con version. A banker who has in good faith without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not in case the title of the cheque proves defective in cure any liabilities to the true owner of the cheque by reason only of having receive such payment. Thus statutory protection given to the collecting banker can be claimed only for crossed cheques

3.2 Advance Section: Advance Banking     

Industrial Loan Term Loan Over Draft Consumer Credit Scheme Others

 Industrial loan: The bank provide industrial loan to its client. It is sectioned for five years or above. In order to get loan from the bank clients are obligated to fulfill the certain requirements provided by the bank.

 Term Loan: The term of loan is determined on the basis of gestation of income by the use of the loan such loans are provided for seasonal agriculture activities, farm machinery, dairy, poultry, transport facilities, extension of tea gardens and development of horticulture, fishing, etc. it is categorized in three segments:

Types of term loans

Time (Period)

Short-term loans

1 to 3 years

Medium term loan

3 to 5 years

Long-term loan

above 5 years.

 Over Draft: The over draft is one kind of advance. In the case, the customer is allowed to overdraft his or her current account by drawing checks more that is available balance up to an agreed limited within a certain period of time but not exceeding more than one year, against acceptable securities. These facilities are granted to the customer only after reviewing the credit standing; financial ability and status of the customer as will as the purpose have been favorably established. The overdraft limit is based on “ADVANCED LINE OF CREDIT” available on a receiving basis and reviewing prior of expiration of the agreed of time between the bank and the customer.

Error: Reference source not found

OD against Pledge and goods: Overdraft against pledge of goods may be extended to the borrowers against pledge of taw materials or finished goods products as security. This is giver accordingly to credit and margin restriction imposed by Bangladesh Bank and FSBL head office time to time. Here the customer signs a dully-stamped letter of pledged by which the customer surrender the physical possession of the goods to the effective control of the bank. The owner ship of the goods remains with the borrower. The outstanding liabilities are adjusted out of the sales proceeds.

Measure taken while providing OD against pledge:  Quality and quantity of the goods properly ascertained.  The goods must be readily saleable and have as effective demand in the present market condition.  The goods must not be perishable. It must store in proper warehouses to prevent form deterioration and risk of pilferage.  The goods have to insured with bank mortgage clause.  Security personnel are to be posted on the warehouse for safety of the goods.  Authorized bank personnel are inspected goods or stock regularly.  Stock card mist be displayed in the warehouse indication the quality, their value and price rate of the goods.

Margin The margin is fixed depending on the nature and type of security and the financial stability of the customer. The Bangladesh Bank regulations are of course kept in mind. JBL retains a responsible margin and this is also to cover up any shortage, shrinkage and fluctuation of rate and fall in price etc.

Drawing power The drawing power indicates the ceiling of the limit up to which a customer can overdraw in his or her account. The drawing power is calculated in the amount arriver after deducting of the margin from the securities value either in cost price or market price which ever is lower. Under no circumstances, the advance will exceed the drawing power if the customer in the manner described above.

OD against Hypothecation of stock JBL prefers and peruses this type overdraft. Under this arrangement, credit facility is provided to the borrower on signing a letter of Hypothecated, creating a charge against the raw materials/ finished goods etc. hypothecated to the bank as primary security against the advance. In this case, both the ownership and physical possession of the goods remains with the bank and when called upon to do so. The bank acquires the right over the goods hypothecated.

Particulars considered and measure taken while providing OD against Hypothecation:  The clients need to be trust-worthy and reliable.  The goods should be readily saleable and of course have constant demand in the market.  The borrowers have had an absolute title of he goods.  Goods must be insured with the bank mortgaged with a sum of 10% above the sanctioned limit.

Margin Same as the overdraft against pledges.

Drawing power Same as the overdraft against pledges.  Consumer Credit Scheme (CCS) Consumer credit scheme is sanctioned fir those pupils, who want to buy commodities like generators, computer, freeze, car (brand new), TV, and any kind of home appliances etc. they have to give a guarantee of manage a guarantor who will take the responsibilities of full payment. The interest rare of this scheme is 15% per year and the time of duration is maximum 2 years. Bank finances not mare than 75% to buy the product. Registration of the product will be in name of the bank. Withdrawals of the registration will be done after making all the installment of the product.

Types of Credit Activities: Loan (General): Short term, medium term and long term loans allowed to individual or firm or industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. This type of lending are mainly accommodate to financing under the categories: # Large and medium scale industry # Small and cottage industry Very often term financing for (a) Agriculture and (b) Others are also including here.

Cash Credit (Hypo) Advances allowed to individuals or firms for trading as well as wholesale purpose or to industries to meet up the working capital requirements against hypothecation of goods as primary security fall under this type of lending. It is a continuous credit. It is allowed under the categories: # Commercial lending-when the customer is a other than industry. # Working capital-when the customer is an industry.

Cash Credit (Pledge): Financial accommodation to individual or firm for trading as well as whole-sale purpose or to industries as working capital against pledge of goods as primary security fall under this head of advance. It is also a continuous credit and like the above allowed under the categories: # Commercial leading # Working capital

SOD (General): Advances allowed to individual/firm against financial obligation (i.e. lien of FDR/PSP/BSP/Insurance policy, etc.) and against assignment of work order for executing of contractual works fall under this head. This advance is generally allowed for definite period and specific purpose i.e. it is not a continuous credit. It falls under the categories ‘Others’.

SOD (Import): Advances allowed for purchasing foreign currency for opening L/C for import of goods fall under this type of lending. This is also an advance for a temporary period, which is known as pre-import finance and fall under the category ‘Commercial Lending’. PAD: Payment made by the bank against lodgment of shipping document of goods imported through L/C fall under this type of head. It is an interim type of advance connected with import and is generally liquidated shortly against payments usually made by the party for retirement of the documents for release of import goods from the customs authority. It falls under the category ‘commercial lending’.

LIM: Advances allowed for retirement of shipping document and release of goods imported through L/C taking effective control over the goods by the pledge in go down under banks lock and key fall under this type of advance. This is also temporary advance connected with import that is known post-import finance falls under the category ‘commercial lending’. LTR: Advances allowed for retirement of shipping documents and release of goods imported through L/C without effective control over goods delivered to the customers fall under this head. The goods are handed over the import under trust with the arrangement that sales proceed should be deposited to liquidate to liquidate the advances within a given period. This is also temporary advance connected with import that is known post-import finance and falls under the category ‘commercial lending’. IBP: Payment made through purchase of inland bills/cheques to meet urgent requirements of the customer’ falls under this type of credit facility. This temporary advance is adjustable from the proceed of bill/cheques purchase for collection. Its falls under the category ‘commercial lending’. ECC: Financial accommodation allowed to a party for export of goods falls under this head and is categorized as ‘Export Credit’. The advance must be liquidated out of export proceeds within 180 days. PC: Advance allowed to a party against specific L/C firm contract for processing/packing of goods to be exported falls under this head and is categorized as ‘Packing Credit’. The advances must be adjusted from proceeds of the relevant export within 180 days. FDBP: Payment made to party through purchase of foreign documentary bills fall under this head. This temporary advance is adjustable from the proceeds of the negotiable shipping/export documents. It falls under the category ‘Export Credit’.

LDBP: Payment made to a party through purchase of local documentary bills fall under this head. This temporary liability is adjustable from proceeds of the bill. SS: This classification contains accounts where such irregularities have occurred but such where such irregularities are considered to be either ‘technicalities’ or temporary in nature. The main criteria for a sub-standard advance are that despite these ‘technical’ or temporary irregularities no loss is expected to arise. These accounts will require close supervision by management to insure that the situation does not deteriorate further. Provision @10% of the base is required for debts in this classification where base is the outstanding balance less interest kept in interest Suspense account less the value of eligible security.

Personal Loan for Women The salient features of the scheme are as follows: 1. 2. 3.

4. 5. 6.

Name of the  Scheme Target Market    Purpose(s)         

Personal Loan for Women Working Women Self employed women Housewives with reasonable income of the spouses A personal loan scheme to Women for purchasing: Household appliances for personal use Buying equipment/ accessories for Business use Hospitalization or other emergency medical needs, House renovation, Office equipment, Marriage in the family, Holiday expenses, Educational/professional training of the family members. Purchase of personal Computer.

Age Group

 Minimum 18 years  Maximum 57 years Minimum Service  1 year Minimum  Working Women – Tk. 8,000/= to Tk. 10,000/= per month Income  Self employed Women – Tk. 20,000/= to Tk. 25,000/= per month  Housewives Tk. 15,000/= per month (Husband’s

Minimum Size

7. 8. 9.

income/salary) Loan  Tk. 25,000/= (Taka Twenty Five Thousand only)

Maximum Loan  Size Down payment  Loan Term 

Tk. 300,000/=(Taka Three Lac only) Nil From 12 months to 36 months

10. 11.

Disbursement

12.

Security

13.

DebtBurden Monthly loan installment cannot exceed 40% of customer’s take Ratio home salary. Proof of Income By submitting the following: · Bank statement for last 6 months · Salary Statements duly certified by the employer · House rent agreement in case of direct income from other source Repayment: Allows to repay the loan in monthly installment.

14.

15.

· Payment shall be made directly by the Bank to the vendor or to the customer, as may be determined by the bank, depending upon the purpose of the loan . • Two Personal Guarantees with attested photograph acceptable to the Bank • In certain cases the Bank may take hypothecation of the purchased assets. • Demand Promissory Note & other Documents as per Scheme. • Four Cheques each covering three installment amount for twelve months loan period. Additional cheque covering the rest installment amount of the period.

 OTHERS

Inland/foreign Bill Purchase The bank authority sanctions loan against cheeks or bill of exchange etc. if the client needs money immediately but the receivable date of the securities requires to be delayed at the moment, client can loan from the bank by showing the securities. The margin of the loan depends on maturity of security.

Bank Guarantee The exporter pays the payment of the imported goods on behalf of the importer through a bank guarantee. If the importer fails to make the fulfill payment at the moment the bank will remain liable to the exporter until and unless the importer pays the money of the imported goods. This type of guarantee also is needed to attend in any tender. The interest rate of this kind of guarantee is 15% quarterly.

Loan against Trust Receive Two different types of LTR is issued to cover the following area of credit lines â&#x20AC;˘ â&#x20AC;˘

Letter of trust receive (for release of shipping documents) Letter of trust receive (for pre-shipment finance)

Chart of interest in lending Agriculture loan including raw jute 15% Term loan (project loan) 15% Working capital loan (except jute) 16% Export loan (packing credit) 11.5% Other commercial loan 16% Urban housing loan 16% Small and cottage industry loan 15% Other special program loan 16% Others Consumer credit scheme 16% Sod against financial obligation (PSI, BSP, 3% above BSP and PSP int. rat etc) Sod general and Sod against shares 16%

Classification of loans:

JBL follows the instructions of Bangladesh Bank for classification of loans. It follows a four-step classification which is-

 Unclassified: The loans, which are not classified. These loans are regular.  Substandard: It is the preliminary stage of classification of loan. If the loan exceeds 6 to 9 month from the payment then it falls in this class.  Doubtful: When a loan exceeds 9 to 12 month from payment time then it is doubtful. That is the bank is in doubt whether they could recover it or not.  Bad or loss: Loan exceeds 12 month of payment ant the possibility of recovery is almost nil.

Stage of classification: Classification Unclassified Substandard Doubtful Bad or loss

Period Below 6 month 6 to 9 month 9 to 12 month 12 month and above

Provision 1% 20% 50% 100%

Total amount of Classified Loan of JBL: Year 2001 (31.12.99) 2002 (31.12.00) 2003 (30.09.01)

Total Amount 64,949

Loan Classified Amount 0.00

Unclassified Amount 64,949

% of Classified Loan 0.00%

7,52,604

0.00

7,52,604

0.00%

17,42,861

3494

17,39,367

0.20%

Recovery

The officers should follow-up regularly. Besides periodical inspection and telephone contact is also required. Surprise visit is fruitful in this regard. The division should prepare a quarterly sheet for loans and be careful that a loan can be adjusted before being classified. If a loan becomes classified then steps should be taken for recovery and declassification. Year 2001 2002 2003

Recovery rate 100% 100% 99.80%

3.3 Foreign Exchange Definition of Foreign Exchange An ordinary citizen usually perceives “foreign exchange” as foreign money. The term foreign exchange is used in a broader sense. It can simply be defined as a ‘process of conversion of one currency into another’. The foreign exchange regulation act refers that foreign exchange means foreign currency and includes any instrument drawn accepted, made or issued under clause (13) of article 16 of the Bangladesh Bank order, 1972, all deposits, credits and balances payable in any foreign currency and any draft, travelers cheques, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any foreign currency.

Export at a Glance: L/C Open Beneficiary place documents Lien jBL Back to back L/C

Raw material procuring Production Shipment Negotiation Documentation Forwarding

Claim re-imbursement Disbursement of fund

Import In lime with the experience of developing countries imports payments of Bangladesh increased over the years. The imported items were mainly industrial raw materials, consumer goods, fertilizer machinery and old ships of scraping, recondition cars etc. the growth in import business had been previous year showing and increase of 20%. Efficient handling did the significant items of import and concerned efforts for building up of a potential clientele for the bank.

Import procedure/ Formalities: Before making imports, the importer enters in to a purchase contract with foreign supplier. If the suppliers have local agent, the importers obtain an indent and pro-forma invoice. If the suppliers have no local agents in Bangladesh, the importers holding a valid import registration certificate (IRC) can import goods in to Bangladesh provide the goods are in the permissible list of item as per the Govt.â&#x20AC;&#x2122;s import policy order in force. All importers in to Bangladesh are subject to opening of L/C. import transactions are concluded with the help of documentary letter of credit established by the importers bank in favor of supplied (Beneficiary) and advised through the agent bank located in the supplierâ&#x20AC;&#x2122;s country. 50

â&#x2122;Ł Documents that are needed for opening an import L/C re listed below: a) Party application duly signed and scaled by the opener / authorized signatory. b) At least four copies of pro-forma invoice/ indent duly signed and sealed by the opener and beneficiary / indentor. Opener signature to be verified by the banker. c) L/C application form (to be provided by the bank) duly signed and scaled by the opener / authorized signatory. Guarantor signature required (if applicable/ mentioned in the proposal). The banker must verify the signature.

d) LCA / IMP forms duly signed and scaled by the opener / authorized signatory.

e) L/C opening proposal approved by the opener authority mentioning L/C details (not required if the L/C is opened with 100% margin). f) Beneficiary credit report (if the L/C is more than $8000 or BDT 500000 which ever is highest). g) Insurance cover note with money receipt in original.

L/C Margin L/C margin varies bank-to-bank and customer-to-customer. Generally it depends on the following factors: a) Relationship between the client and the banker. b) Seasonal factor. c) Feature of the goods.

Foreign Remittance Foreign remittance is another important factor of the JBL from where it earns a lot of foreign exchange every year. Remittance means to send or transfer money or moneyworth from one place to another. In this case, the bank acts as the media to transfer or remit the money. Against the service it charges some commissions from the client.

PRODUCT & OTHER SERVICES 53

♦ Corporate Banking ♦ Personal Banking ♦ Deposit Accounts ♦ Q - Cash ♦ SWIFT ♦ E- Cash & Online Banking

4.1 Corporate

Banking

The motto of JBL's Corporate Banking services is to provide a personalized solutions to our customers. The Bank distinguishes and identifies corporate customers' need and designs tailored solutions accordingly. Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is a project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of businesses and industries. You can leverage on our know-how in the following sectors mainly:  Agro processing industry  Industry (Import Substitute / Export oriented) - Textile Spinning, Dyeing / Printing - Export Oriented Garments, Sweater. - Food & Allied - Paper & Paper Products - Engineering, Steel Mills - Chemical and chemical products etc.  Telecommunications.  Information Technology  Real Estate & Construction ·  Wholesale trade  Transport · Hotels, Restaurants ·  Non Bank Financial Institutions  Loan Syndication ·  Project Finance · Investment Banking  Lease Finance · Hire Purchase · International Banking ·  Export Finance  Import Finance

4.2 Personal Banking Personal Banking of Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available you a unique mixture of easy and consummate service quality. We make every endeavor to ensure our clients' satisfaction. Our cooperative & friendly professionals working in the branches will make your visit an enjoyable experience.  Deposit Accounts  Q-Cash Round the Clock

4.3 Deposit Accounts NEW SCHEMES JBL offers the following key Personal Banking Services:  Current Deposit Account  Savings Deposit Account  Short Term Deposit Account  Fixed Deposit Account        

No limit to the number of withdrawals No minimum balance fee Statement of account at your desired frequency Free cheque book Q-Cash Round the Clock Banking All types of general banking facilities Attractive and competitive interest rate

International Trade Finance International Trade forms the major business activity undertaken by Jamuna Bank Ltd. The Bank with its worldwide correspondent network and close relationships with key financial institutions provides an extensive trade services network to handle your transactions efficiently. Our key branches in Dhaka, Chittagong, Sylhet and Naogaon are staffed by personnel experienced in International Trade Finance. These offices are the focal point for processing import and Export transactions for both small and large corporate customers. We offer a complete range of Trade Finance services. Our professionals will work with you to develop solutions tailored to meet your requirements, through mobilizing our full range of trade services locally, and drawing on our global & resources. We can offer you professional advice on all aspects of International Trade requirements, namely:       

Issuing, advising and confirming of Documentary Credits. Pre-shipment and post-shipment finance. Negotiation and purchase of Export Bills. Discounting of Bills of Exchange. Collection of Bills. Assist customers to insure all risks. Foreign Currency Dealing etc. Import and Export transactions for both small and

4.4 Q-CASH:

Q-CASH ROUND THE CLOCK SERVICE Jamuna Bank Q-Cash ATM Card enables you to withdraw cash and do a variety of banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major shopping centres, business and residential areas in Dhaka and Chittagong. ATMs in Sylhet, Khulna and other cities will soon start be introduced. The network will expand to cover the whole country within a short span of time. With your Jamuna Bank Q-Cash ATM card you can: •

Cash withdrawal Round The Clock from any Q-Cash logo marked ATM booths.

•

POS transaction (shopping malls, restaurants, jewellaries etc)

•

Enjoy overdraft facilities on the card (if approved)

•

Utility Bill Payment facilities

•

Cash transaction facilities for selective branches nationwide

•

ATM service available in Dhaka and Chittagong Withdrawal allowed from ATM's of Jamuna Bank Ltd., AB Bank, The City Bank, Janata Bank, IFIC Bank, Mercantile Bank, Pubali Bank, Eastern Bank Ltd. respectively And more to come Is Q-Cash

Q-cash is Secured ,because: Q-Cash cardholders can only carry out transactions on Q-Cash ATMs with Personal Identification Numbers (PIN). The PIN is a unique 4-digit number that allows you to access your account. You can change your PIN anytime from ATM machine. In case you have lost your card, transactions cannot be done without the PIN. •

Jamuna Bank Limited(JBL) has installed its first Q-cash ATM at Dhanmondi Branch, Dhaka.

•

Jamuna Bank (JBL) is going to issue VISA card soon.

In line with the issuance of Q-cash products JBL is going to introduce VISA card very soon.

4.5 SWIFT Jamuna Bank Limited (JBL) is the member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.

SWIFT No.: JAMUBDDH

4.5 E-Cash & Online Banking:

E- cash: A New Dimension in Banking Online Banking Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from any of its 23 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj and Munshigonj. Our valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra. All the existing customers of Jamuna Bank Limited will enjoy this service by default.

Key features: •

Centralized Database

•

Platform Independent

•

Real time any branch banking

•

Internet Banking Interface

•

ATM Interface

19 19

Opening of Online Banking Services of Jamuna Bank Limited

PRACTICAL ORIENTATION OF JBL ♦ Overview ♦ Ratio Analysis

5.1 OVERVIEW: The sponsors of Jamuna Bank Limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialist and businessmen having wide business reputation both at home and abroad. JBL is managed by highly professional people. The present managing director of the bank is a forward-looking senior banker having decades of experience and multi decipline knowledge to his credit both at home and abroad. An educated and skilled professional team supports him with diversified experience in finance and banking. The management of the bank constantly focuses on the understanding and anticipating customers needs and offer solution there of. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers and known for its reputation. CASH POSITION OF JBL (ONE DAY): Code 0098 Opening Balance Receiving from banks Receiving from clients TOTAL RECEIPT Paid to banks Paid to clients TOTAL PAYMENT

Date: 21.01.07 72004783 32000000 12673611 44673611 30000000 12384301 42384301

---------------------------------------------------------------CLOSING BALANCE TK 74294093 Closing cash balance as on 21.01.07 Taka (in words) Seven crore forty two lac ninety four thousand ninety Three only. Receipts Vouchers 109 Payment Vouchers 143 ----------TOTAL VOUCHERS 252 ------------------------Authorized officer

5.2 RATIO ANALYSIS Here, Necessary ratios have been analyzed in order to identify the trend of JBL during their period of 2001 to 2005. As the annual report of the year 2006 has not been prepared yet by the Bank analysis, I cannot interpret and analyze the ratios of that year. Ratio Analysis indicates the financial performance of a particular period. The total overall performance of JBL is steady & showing upward trend that indicates financial soundness of that company. It strongly is influencing macro level variables of the country.

Performance Ratio (In %) Return On Asset (ROA) = Net Income/ Average Total Asset

Time 2005 2004 2003 2002

ROA 2.39 2.35 1.47 0.01 ROA

2002 2003 ROA 2004 2005 0

0.5

1.5

2.5

Interpretation: It indicates return earning capacity against Fixed Asset with including tax. The above chart shows steady growth during the specific time frame period. Here Industry benchmark is 2. The Chart & the numerical figure shows the company is achieving more than 2 percent for the last 2 consecutive years. Return On Average Assets After Tax = Net Income + After tax Interest Cost /Average Total Asset

Time 2005 2004 2003 2002

ROA (After tax ) 1.32 1.34 0.81 0

ROA (After tax ) 2002 2003 ROA (After tax ) 2004 2005 0

0.5

1.5

Interpretation: It indicates return earning capacity against Fixed Asset with excluding tax. The above chart shows steady growth during the specific time frame period. Here Industry benchmark is 1/1.5. The Chart & the numerical figure shows the company is achieving more 1 percent for the last 2 consecutive years with satisfactory rate.

Return On Average Equity = Net Income After Tax / Total Income Capital Time 2005 2004 2003 2002

ROE (Average ) 28.25 29.46 14.53 0.06 ROE (Average )

2002 2003 ROE (Average ) 2004 2005 0

Interpretation: It indicates profit-earning capacity against average equity (Ending + Starting). The chart & the numerical figures indicate that for the Last year (2005) ROE has declined for a marginal rate though the performance is satisfactory. During the time of inception it was only 0.06 but after it has gone tremendously & which is above the benchmark. Their performance could attract the potential stockholders.

Net Interest Margin = Int. income from loan & investment â&#x20AC;&#x201C; Int. expense on debt issued / Total assets or total earning assets

Time 2005 2004 2003 2002 2001

Net Interest Margin 2.93 2.87 1.93 1.31 0.67

Net Interest Margin

2001 2002 2003

Net Interest Margin

2004 2005 0

Interpretation: It indicates how large a spread between interests revenues and interest costs management has been able to achieve by close control over the bankâ&#x20AC;&#x2122;s earning assets and pursuit over the cheapest sources or funding. The facts & figure indicates it is increasing at a increasing rate. It made the JBL competitive in the highly competitive market.

Return on Investment Time 2005 2004 2003 2002 2001

ROI 6.2 6.9 2.93 4.68 3.69

ROI

2001 2002 2003

ROI

2004 2005 0

Interpretation: It Indicates the Profit gaining capacity against the investment. In 2003 their Financial Performance collapsed because of their wrong Investment in Portfolio & turn over rate was very high at that time. Besides they gained steady growth over the last five years. But still it does have a lot of room to improve in this arena .

Profit Margin = Net Income After Tax / Total Operation Revenue Time 2005 2004 2003 2002 2001

Profit Margin 20.76 19.59 13.11 0.09 NIL Profit Margin

2001 2002 2003

Profit Margin

2004

2005 0

Interpretation: It Indicates Profit gained capacity against total Assets. Over the last three years it increases at an increasing rate. In 2005 it reached to 20.76 which indicates recent performance of JBL is tremendously well. & its trends shows it will be able to capture upward benchmark in the upcoming years Return On Risk Weighted Assets Time 2005 2004 2003 2002 2001

Return on Risk Weighted Assets 4.03 4.68 3.57 0.02 NIL

Return on Risk Weighted Assets

2001 2002 2003

Return on Risk Weighted Assets

2004 2005 0

Interpretation: It indicates return against risky weighted Assets. We know that high risk must be compensated by the high profit. The above chart & numerical facts indicate that though they gained profit which are worth of 4.03 & 4.68 in 2005 & 2004 respectively , is not enough to prove the efficiency in terms of profit against Risky Assets

Interested Yield Time 2005 2004 2003 2002 2001

Interested Yield 10.68 11.58 11.02 8.03 5.59

Interested Yield

2001 2002 2003

Interested Yield

2004 2005 0

Interpretation: Interest yield ratio indicates interest-earning capacity from their portfolio & short term in vestment. Their Interest yield is increasing at increasing rate though it collapsed in 2005. Here industry benchmark is 11/12. So easily we can mention that their interest earning capacity is satisfactory

Salary Exp to Overhead Exp Time 2005 2004 2003 2002 2001

Salary Exp. To Total Overhead Exp. 39.82 48.56 50.11 52.58 63.19

Salary Exp. To Total Overhead Exp.

2001 2002 Salary Exp. To Total Overhead Exp.

2003 2004 2005 0

Interpretation: Though Manpower is increasing in different branches but the above ratio shows the salary exp is decreasing as compare to total overhead exp. It indicates that as the firm is growing at steady & increasing rate , Oveerhead cost goes with it .As a result total salary % is decreasing year by year. Productivity Ratio Time 2005 2004 2003 2002

Productivity Ratio 31.37 27.01 30.06 20.48

2001

29.43

Productivity Ratio

2001 2002 2003

Productivity Ratio

2004 2005 0

Interpretation: It Indicates Internal growth of JBL with in a specified time period. Over the last five years , specially in the last three years it acieved benhmark industry success. Though the ratio decline in 2004.

Staff Per Branch Time 2005 2004 2003 2002 2001

Staff Per Branch 21.88 24.15 21.06 12.85 13.86 Staff Per Branch

2001 2002 2003

Staff Per Branch

2004

2005 0

Interpretation: In 2005 the company went for downsizing as part of their strategic decision & simultaneously employee turnover has taken place in that specific time period. Besides this it increasing at a increasing rate over the last five years which indicates expansion of JBL in different region of Bangladesh to meet the different personal & organization financial needs .

Capital to Deposit % Time 2005 2004 2003 2002 2001

Capital to Deposit % 21.88 24.15 21.06 12.85 13.86

Capital to Deposit %

2001 2002 2003

Capital to Deposit %

2004 2005 0

Interpretation: As part of Bangladesh Bank requirement every bank has to maintain minimum amount of capital as part of statuary requirement. Here Capital is increasing

which indicates that the dependency on borrowed fund of JBL is decreasing. It indicates Organization is now more dependable on capital rather than borrowed fund.

Non Performing Loan to Total Loan Time 2005 2004 2003 2002 2001

Non Performing Loan to Total Loan 0.46 0.04 0.02 Nil Nil

Non Performing Loan to total Loan

2001 2002 2003

Non Performing Loan to total Loan

2004 2005 0

0.2

0.4

0.6

Interpretation: It indicates the total number of outstanding loan is increasing at decreasing rate of JBL. Especially in the last year 2005 it increased by a large deviation. Which is not accepted but in BD business operation this is very insignificant.

Loan to Deposit Time 2005 2004 2003 2002 2001

Loan to Deposit 76.18 64.33 48.94 46.57 18

Loan to Deposit

2001 2002 2003

Loan to Deposit

2004 2005 0

Interpretation It indicates Loan giving capacity against their Taking deposit from the different surplus unit. It indicates efficiency of JBL interms of Loan over the last five years. It also indicates that the loan default culture is being decreased by the efficient Management of JBL.

Leverage Capital Ratio (Capital) Time 2005 2004 2003 2002 2001

Leverage Capital Ratio (Capital) 15.18 15.91 14.19 10.56 4.86 Leverage Capital Ratio (Capital)

2001 2002 2003

Leverage Capital Ratio (Capital)

2004

2005 0

Interpretation : Though the Leverage of JBL is increasing over the last five years & it is expected. Because to make a balance in the capitals structure, The leverage is required. Even they can increase their leverage ration because to get the more tax benefits from the government.

Average Equity to Average Assets Time 2005 2004 2003

Average Equity to Average Assets 4.66 4.55 5.59

2002 2001

8.21 9.26

Average Equity to Average Assets

2001 2002 Average Equity to Average Assets

2003 2004 2005 0

Interpretation: It indicates the position of Average Equity against the average the Asset. Here the annual report of 2005 indicates that their Average equity has increased. As result their Average Asset increased at increasing rate which is more than that of Average Equity. As a ratio this ratio declined over the last five years. It indicates the marginal efficiency of gaining Asset.

CONCLUSION ♦ Recommendation ♦ Conclusion ♦ Bibliography

6.1 Recommendation Although this branch is making a huge amount of profit and generating a large volume of deposit, a number of problem have been dictated while I working this branch. Based on my work experience at JBL, Dilkusha branch, I would like to put the following recommendation: •

Bank need to increase its quality of customer service.

•

Branch should be innovative and diversified in its service.

•

Need modern technology, without using modern technology no bank can even think of remaining in the business in near future. So the bank must decide right now how it equip its branches with modern technology.

•

Information system should be developing. Bank should be using Internet for local and international correspondence.

•

Human resource is another sector for the branch to be developed urgently. Human resources, in the branch are not equipped with adequate knowledge. Bank can arrange training program for these lacking.

•

Chain of doing job in the branch should be made clear. In the branch chain of completing a work is not clearly, one employee sometimes performs same duty and in another time different employee performs it. So no employee can be held liable for defective work or for delay in work.

•

Need to speed up processing of loan application.

•

They’re being no restriction customers clients are found to move hither and thither inside the bank premises. This hinders the smooth functioning and amount to security of the bank office should more careful about this.

•

Computer division need to be up date and extensive for the greater welfare of the branch.

•

Bank should be innovative and diversified in its services.

6.2 Conclusion During the three months internship program at Dilkusha branch, almost all the desks have been observed mire or less. Gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Though all departments and sections are covered in the internship program, it is not possible to go to the dept of each activities of branch because of time limitation. So, objective of this internship program has not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objective the internship program. During the internship, it is found that the branch provides all the conventional banking services as well as some specialized financing activities to the economy.

6.3 Bibliography  Annual report 2005 

www.jamunabankbd.com

 Customer Service  Credit Policy Dilkusha Branch.  The Analysis & Use of Financial Statements,(3rd Edition) Derald I. White. Ashwinpaul C. Sondhi.