Credit Import and Export Activities of Jamuna Bank Limited.

Executive summary

Jamuna bank Ltd. (JBL) is one of the leading private Bank in Bangladesh . This Bank is commitment to provide highest quality services to the customers. On part of that, the Bank has presented so many schemes for the customers. JBL has always tried to introduce all the schemes have got tremendous success by getting acceptance from the customers.

I prepared the internship report on Foreign “Exchange in Import Sectors” a case study of  jamuna bank Ltd. based on secondary Data and information. For this specific purpose I collected data and information from versions sources like published materials such as the annual report , department of Foreign Exchange, Daily Statements of Affairs of different Branches and other related Books.

Origin of the Report:

The preparation and submission of this report is partial requirement for the completion of the Bachelor of Business Administration (BBA).This report is outcome of the three month long internship program conducted in Jamuna Bank Limited, one of the reputed private commercial banks of the country.

In the president time the business market is global and the market is very comparative. Every country are related to Exports and Imports business .If they are exports something on the other hand they are import something. So export import is very important in international business.

The objectives of the organization are to provide opportunities to the young fresh business learner gather experience about their organization. These interns are the prospective employees of these organizations, which reduce their cost. On the other in these programs, a concern can get constructive criticism, recommendation from intern’s finding, which exhibit in their report. On the other part they can get fresh and trained business personnel in a reduced cost. Concerns are get exposure by those young learners.

Background of the Study

Business world is becoming very much complex day by day. Without sufficient practical experience business becomes difficult and in some case impossible. The whole world’ is moving because of business relation. Business plays a very important role in developing economy of a country. So, in the business world, practical experience is regarded as a media through which we have an acquaintance with the real world.

The Bachelor of business Administration (BBA) was introduced by Ahsanullah University of science And technology with an objective to supply an adequate number of highly trained and educated graduates to the economy. As the BBA program is the integrated, theoretical and practical method of teaching students of this program are required to have practical exposure in own different major disciplines in the preceding years of their courses.

I was authorized to prepare a report on central function of Jamuna Bank Ltd. for partial fulfillment of my course requirement. This report has been prepared based on my practical experience on the day- to- day banking activities and under close supervision of my internal guide teacher  Dr. Shirajuddula Shaheen.

Objectives of the Report:

The objectives of the Intern are to gather practical experience, which may make them as complete business personnel. In these program they are introduce with the different nature of responsibilities, discipline, and organizational environment, which helps to build up as a successful professional in real life. On the other hand in their 3 months program an intern analytical power also increase as result they prepare their internship report which include their criticism, recommendation, and other analysis which is the prove of their compatibility’s. In these program they also familiars with different research materials, which increase their analytical power. Lastly they gather on the job training, which is non-comparable with any other study materials.

 So as I act as an intern in Jamuna Bank Limited and some objectives are given below:

• To identify problems & challenges of credit Import and Export activities of JBL.
• To assess and evaluate the growth trends of Jamuna Bank Limited.
• To evaluate the profitability of Jamuna Bank Limited.
• To identify the major strength and weakness of Jamuna Bank Limited in respect to other banks.
• To fulfill the requirement of the BBA Program.

Literature review of the study:

Jamuna bank limited is one of the growing banks in Bangladesh. Export and Import are the most important function of this Bank. But these activities suffer from some kinds of problems that are learnt from discussion with officers, clients and also problems identified from the job observations. The problems are as follows

      Lack of Deposit for Credit Extensions

Discussion with officers of the Head Office revealed that if the Bank collects more deposit, it would be able to advance credit to more viable projects.

      Mentality of not to repay the loan                                                                                   

A culture has been developed among the common people that Bank loans need not to be repaid.

      Defective Legal System

Existing bad legal system is another greatest blow and curse to the credit management system and alarming factor recovering loan from defaulter. In reality it is very difficult, lengthy and expensive to have a verdict in favor of the Bank.

      Delay in Loan Sanction

Lengthy process of loan sanction or delay is a common problem of credit management.

      Higher Rate of Interest for Credit

Clients generally complain that rate of interest for various type of credit are quite high. In many cases productivity from loaned investment is inadequate that borrower become incapable in repaying loan.

      Changes in Policies

Due to changes in the export, import, foreign exchange policy as well as monetary and fiscal long term financing suffer a lot.

      Irregularity in Providing Loan

Usually Banks are responsible to provide loan to those who are eligible for the loan. But in reality, small investors do not get the loan easily. They have to fulfill more terms and conditions than those who have greater influence in the business community.

Methodology of the Study

Mainly I have collected data from two sources. These two sources are as following.

      Primary source

      Secondary source

The primary sources of my information are as below:

1. Direct observation
2. Investment Outlook
3. Questioning the concerned persons.

The secondary sources of my information are as below-

1. Annual report of Jamuna Bank Limited.
2. Desk report of the related department.
3. Different reference books
4. Some of my course elements as related to this report.

 Limitation of the study:

Although the officials were so busy, they gave me wholehearted cooperation in the time of internship also in preparing this report. It was such a nice experience I have gathered from JBL. But I have faced the following that may be terns as die limitations of the study.

Lack of records: Sufficient books, publications and figures were not available. If this limitation were not been there, the report would have been more useful.

Lack of time: The time period of this study is very short. I had only three months in my hand to complete this report, which was not enough. So I could not go in depth of the study. Sometimes the officers were busy and they were not able to give me much time.

Insufficient data: Some desired information could not be collected due to confidentially of business.

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.

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  ten years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has real-time centralized Online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides these traditional delivery points, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country.

The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transactions hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday & Saterday including government holidays.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital of Tk. 4,000.00 million and Paid-up Capital of Tk.1,313.26 million. The total capital/equity of the bank stands at Tk. 2,444.33 million as on December 31, 2010.

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.

Strategies:

      To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund.

      To strive for customer satisfaction through quality control and delivery of timely services.

      To identify customers’ credit and other banking needs and monitor their perception towards our performances in meeting those requirements.

      To review and update policies, procedures and practices to enhance the ability to extend better service to customers.

      To train and develop all employees and provide them adequate resources so that customers needs can be reasonably addressed.

      To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion.

      To cultivate a working environment that fosters positive motivation for improved performance.

      To diversify portfolio both in the retail and wholesale market.

      To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.

  Objectives:

      To earn and maintain CAMEL Rating ‘Strong’.

      To establish relationship banking and improve service quality through development of Strategic Marketing Plans.

      To establish relationship banking and improve service quality through development of Strategic Marketing Plans.

      To introduce fully automated systems through integration of information technology.

      To ensure an adequate rate of return on investment.

      To keep risk position at an acceptable range (including any off balance sheet risk).

      To maintain adequate liquidity to meet maturing obligations and commitments.

      To maintain a healthy growth of business with desired image.

      To maintain adequate control systems and transparency in procedures.

      To develop and retain a quality work-force through an effective human Resources Management System.

      To ensure optimum utilization of all available resources.

Corporate Governance:

The organizational structure and corporate governance of Jamuna Bank Limited Reflect the determination to establish sustain and increase its strength for a strong base as a customer oriented bank with a transparent management.

Organizations are open system that needs careful management. Jamuna Bank Limited always pursues the principles of openness, disclosure and compliance to regulatory authorities, transparency in performance, integrity in dealings, ethics in banking and accountability to the shareholders in corporate governance. Jamuna Bank Limited pledge bound to keep it free from the clutches of loan defaults culture. And the process always goes on. The organizational structure and corporate governance of Jamuna Bank Limited Reflect the determination to establish sustain and increase its strength for a strong base as a customer oriented bank with a transparent management.

The bank ensures orderly relation between clearly defined functions of the Board of Directors (BOD) and the Management. Their role remains sharply bifurcated. The Board formulates policies and frames of operation. The management implements them and acts within norms. The Management enjoys full independence in managing the banking industry, especially its credit portfolio without any undue influence from outside. It, however, functions are reutilized, efficient, suitable and dynamic way o foster progress, promote general welfare to the society and infuse its people to serve the nation. In Corporate Governance, we strictly comply with the requirements of Companies Act- 1994, Banking Companies Act-1991, Rules and Regulations of Bangladesh Bank and other Regulatory Authorities.

Correspondent Relationship:

Jamuna Bank Limited. Established correspondent relationship with most leading international banks in 105 countries through 316 correspondents to cover all-important financial sector of the world. JBL endeavors to increase its network of correspondent relationship with the most international banks and financial institutions to cater for the expanded needs of its customers globally. Drawing arrangements with the overseas exchange houses has already been established to bring home remittances into the country through the banking channel.

Online Banking:

Banking sector has become very competitive and to provide more satisfaction and advantages to the customers at a very low cost, On-line banking system is the solution. The BOD and Management of Jamuna Bank Limited. Always aware about this fact and have eagerness for providing world class banking facilities to its valued customers. With this view a group of talented IT Professionals under the excellent leadership of the Managing Director started the journey to reach the ultimate goal. JBL started its expedition at the middle of May 2004 for implementation of real time On-line banking system and within a very few months and hard working of the team the Bank reached the successful implementation of its On-line computerized project, which was possible due to the dedication by all the members of JBL computer team. Taking future visions for improvements of the projects and minimizes the cost from the very beginning JBL established centralized integrated On-line system among all of its branches. Flora Bank On-line Banking software, switching software, Servers, ATM, data storage system and other hardware simultaneously set up, to acquire a fully equipped data center at Bank’s Computer Division, Head Office. To get maximum speed for operating the On-line system, JBL contracted Square Informatics Limited. And Metronet BD. Ltd. Square Informatics Limited. Provides information/data through satellite and Metronet provides information/data via optical fiber.

 All branches were added in JBL’s On-line network at Chittagong, Gazipur and Dhaka from the very first day of operation. The customer of JBL can now enjoy the world class banking service locally at a very reasonable cost through the fully automated On-line banking system. JBL is the only 3^rd Generation Bank, which operate ON-LINE BANKING SERVICE.

Islamic Banking Branch:

In the year 2004, Jamuna Bank Limited opened another Islamic banking branch at Jubilee Road, Chittagong on November 27,2005. The already existing Naya Bazar Islamic Banking branch started its operation from October 25, 2003, the total Islamic banking branches stands at 02 (two). JBL’s Shariah Council consists of 06 (Six) members, among the m 02 (two) are Khatib, 01 (one) is Ex-Economic Advisor, 01 (One) is Vice Chancellor, Islamic University, 01 (One) is Principal and other one is Eminent Banker. During the year 2004, the Shariah Council of JBL conducted 03 meetings to discuss all aspects of Islamic Branches operation.

Risk Management:

Bangladesh bank as a regulatory body advised all banks to implement an effective risk management system focusing on five core risks such as:

Credit Risk Management

Foreign Exchange Risk Management

Internal Control and Compliance

Prevention of Money Laundering

These risks are termed as an integral part of business and such risk management and monitoring of loan portfolio was always treated with the highest priority in JBL. The Bank is always trying to establish superior monitoring of its credit risks and returns, in maturity mismatch between asset and liabilities has always been reviewed in the ALCO meeting to maintain acceptable risk. The Bank’s credit policy guideline and procedures as continuously reviewed and upgraded by the well established Internal Credit Committee. The Bank also maintain an effective system of Internal Control, establishing systems and procedures to scrutinize the transactions, encompassing key back up procedures and commissioning of proper governance structure, risks and returns are evaluated with a goal of producing sustainable revenue, reducing earnings volatility and increasing shareholder’s value. JBL is always aware of classification of advances, which now stands at a negligible 0.46%.

Human Resource Management:

Jamuna Bank Limited recognizes the importance of employee participation in the maintenance of standards and general well being of the organization. Success of Bank depends on its employee working together as a team for the interest of the banks. JBL’s banking strategy is to provide excellent service to its customer through a highly motivated and engaged people. The management believes in having a strong and vivacious workforce to take the bank towards the path of shining progress. JBL draws from the best available training programs and facilities both international and domestic to meets its training and training environment needs and globally benchmarked skills and capabilities. JBL’s human resources policy and practices are designed to secure the goodwill, motivation, commitment, and contribution of all employees to achieve mission and objectives of the bank. The bank has established and well recognized policy of encouraging employee involvement through communications and consultation on a wide range of uses. Wherever possible, employees are invited to participate in multidisciplinary quality and process improvement activities. The Bank has already allocated a space to establish a well-organized Training Institute, where internal and external trainers will conduct Bank’s in-house training program and such programs will be designed to continuously upgrade itself within the latest development in the banking as well as information technology. JBL always have the view of hiring the best people both from local and foreign banks and to recruit talents through competitive exams, and implementing programs to develop and retain high quality human resources. JBL has well thought plaices for the welfare of its employees, like Provident Fund, Gratuity Fund, Superannuating Fund, Car Loan, House Building Loan etc. JBL’s human resource management policy is to identify the right combination of skills, knowledge, behavior and values and divert them from the welfare of the Bank, themselves ands the country as whole.

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 to build 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.

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.

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

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, JBLMSS is the right solution.

Products & Services

Corporate Banking

The motto of JBL’s Corporate Banking services is to provide a personalized solutions to JBL 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, JBL Corporate Banking Managers will offer you the accurate solution. JBL corporate Banking specialists will render high class service for  speedy approvals and efficient processing to satisfy customer needs.

Personal Banking Division

Personal Banking Division (PBD) introduces to the customers with a variety of products. JBL PBD continuously meets the challenges of developing new products and services to match the specific requirements of customers.

Personal Banking Division (PBD) issues both VISA Debit Cards and VISA Credit Cards. VISA is the renowned Card brand in the earth. Jamuna Bank Limited is a principal member of VISA Worldwide. Remittance Cell is another successful wing of the Personal Banking Division. JBL product range includes:

VISA Debit Cards – You can now avail the convenience of VISA Debit Card. It is the easiest and the most secured way of utilizing your money for 24/7 retail purchases as well as cash withdrawal.

VISA Credit Cards – The JBL Credit Card gives you a fast, convenient and reliable way to pay, 24 hours a day, wherever you are in the world.

      VISA Classic     VISA Gold

International Credit Cards – JBL International Credit Cards (VISA) allows you flexibility and convenience when you travel internationally. The VISA International card entitles you to exclusive discounts worldwide.  

JBL Remittance Cell – “Remit Fast” is the motto of JBL Remittance Cell. It provides the best & faster services to its customers and connects the world through the renowned money exchange agencies. Such as Placid Nk Corporation, Moneygram Payment System Inc., Raffles Exchange Ltd.UK, Euro Bangla Money Transfer (UK) Ltd., Moneylink,UK, Homelink Remit (UK) Ltd., Rumana Money Services. Customers can avail improved pricing on remittance. 

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. JBL 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. JBL professionals will work with you to develop solutions tailored to meet your requirements, through mobilizing JBL full range of trade services locally, and drawing on JBL 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.

List of Foreign Correspondents 

To provide International Trade related services we have established Correspondent Banking relationship with 336 locations of 106 world reputed Banks in more than 100 countries.

JBL main Correspondent Banks are:

Citi Bank  N.A., Standard Chartered, American Express Bank, Bank of New York, Bank of Nova Scotia,  Duetche Bank, Dresdner Bank AG, Habib American Bank, Habib Bank AG Zurich,

Bayerische Hypo Vareins Bank, Mashreq Bank PSC, Nordea Bank AB,  Royal Bank of Canada, UBS AG, Union De Banques Arabes ET, Francaises, Wachovia Bank NA, Forties Bank S.A/NV,  Svenska Handlesbanken,  Bank of Ceylon, Banca Toscana, ABN Amro Bank, Commonwealth Bank of Australia, Danske Bank A/S. Absa Bank Ltd., Agricultural Bank of Chaina, Banca Intesa SPA, Banca Italo Albanese, Banca Popolare Commercio E Industria SPA,  Bank Austria Credittanstal AG, Bank Commonwealth, Bank Madiri (Europe), Bank of Cyprus, Bank of Bahrain and Kuwait, Bank of Jordan Ltd., Bank Sadarat Iran, Blue Nile Bank, Commercial Bank of

Kuwait, Commercial Bank of Qatar Ltd., Development Bank of the Philippines, Dexia Bank SA,  EON Bank Berhad, First International Merchant Bank PLC., Foreign Trade Bank of North Korea, Foreign Trade Bank of Vietnam, Hiroshima bank, HVB, Hungary RT, ICICI Bank Canada. Industrial and Commercial Bank of China, ING Bank NV, Islamic Bank of Yemen and for Finance & Investment,  Korea Exchange Bank, National Commercial Bank, Shinhan Bank, State Bank of India (Canada) UFJ Bank Ltd., United Bank of India, Bank of Bhutan, Allied Bank Philippines.

Foreign Remittance:

Jamuna Bank Ltd. has a network of 19 branches in Bangladesh and 4 more branches are going to be added to network soon.

Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries.

Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time.

Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby ( where they reside/work) to send their money to their dear ones in Bangladesh.

To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank Ltd.

Credit Facilities

• The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and industrial activities through an effective delivery system.  

• Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having productive purpose.  

• The loan portfolio of the Bank encompasses a wide range of credit programs.

• Credit is also offered to major thrust sectors, as earmarked by the govt., at a reduced interest rate to develop frontier industries.

• Credit facilities are offered to individuals including housewives, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc.

• Loan is provided to the rural people for agricultural production and other off-farm activities.

Shop Finance Scheme

Objectives

01.  To enable the small business community to run the business smoothly

02.  Facilitating  expansion of the existing businesses

03.  To improve the banking habit of self employed persons

04. To diversify bank’s lending to Small & Medium Enterprises (SME) which are considered as less risky and help community developments. It may be noted down that the government is also encouraging investment in SME sector.

Insurance:

All borrowing customers’ inventory i.e. Stock-in-trade will be insured against Fire, Rsd & other risks with the Bank’s mortgage clause cost of which will be borne by the shop owner/client/borrower.

Repayment Schedule:

  Repayment schedule should be as under:

 i)     In case of 01 year, 10 monthly installments for the loan limit up to Tk. 3.00 lac with 02 month  grace period from the date of disbursement

ii)     In case of 02 year, 22 monthly installments for the loan limit up to Tk.6.00 lac with 02 month grace period from the date of disbursement

iii)    In case of 03 year, 34 monthly installments for the loan limit above Tk.6.00 lac with 02 month grace   period from the date of disbursement

Q-Cash Round The Clock Banking:

  Jamuna Bank Q-Cash ATM Card enables 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 major cities. The network will expand to cover the whole country within a short span of time.

Jamuna Bank Q-Cash ATM card:

• 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

Online Banking

Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from all branches located throughout the Country.   JBL valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at different location throughout the Country.

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
• Corporate MIS facility

 Delivery Channels: 

• Branch Network
• ATM Network
• POS (Point of Sales) Network
• Internet Banking Network

Non banking activities

• Relief Distribution
• Iron Cot Donation
• Free Eye Camp
• Blood Donation
• Scholarships
• Anti Drugs Foundation

FOREIGN EXCHANGE 

Dr. Paul Eingiz defines,  Foreign Exchange as the system or process of converting one national currency into another and of transferring the ownership of money from one country to another.

H.E. Evitt defined “Foreign Exchange” as the means and methods by which rights to wealth expressed in terms of the currency of one country are converted into rights to wealth in terms of the currency of another country.

Foreign Exchange Department is international department of the bank. It deals                                                                                                                         with globally and facilitates international trade through its various modes of services. It bridges between importers and exporters. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers.  If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign country. This department mainly deals with foreign currency. This is why this department is called foreign exchange department.

Some national and international laws regulate functions of this department. Among these, Foreign Exchange Act, 1947 is for dealing in foreign exchange business, and Import and Export Control Act, 1950 is for Documentary Credits. Governments’ Import &Export policy is another important factor for import and export operation of banks.

JBL, Gulshan Branch foreign exchange department has three sub-sections. One is foreign remittance section, another is import section and the third one is export section. A Senior Officer Nasrin Ara, FAVP is the in-charge of the Foreign Exchange Department of this branch.

Growth Of Foreign Exchange Business at JBL

Over the last 9 years, the Bank has made a pace setting progress in handling foreign trade and foreign exchange business. The total foreign exchange business stood at Taka 18088.12 million in 2004 against Taka 19065.10 million of 2003, registering a decreasing of 5.12 percent.

To handle foreign exchange business effectively and efficiently, the Bank has, over the years, developed a wide network of correspondents throughout the world. The Bank has correspondent relationship with more branches of several foreign Banks and exchange houses in 35 countries (Approxi) as on 31.12.2004.

Foreign Exchange Business

At JBL

(Taka in Million)

Import Section:

Imports of goods into Bangladesh is regulated by the ministry of commerce and industry in terms of the Import and Export (Control) Act, 1950, with import policy orders issued by annually, and Public Notices issued from time to time by the office of the Chief Controller of Import and Export (CCI & E). Through the process of import some vital but which are inadequate in our country products are imported to meet the local needs of the people.

Import Mechanism:

 To import, a person should be competent to be an ‘importer’. According to Import and Export (Control) Act, 1950, the officer of Chief Controller of Import and Export provides the registration (IRC) to the importer. After obtaining this, the person has to secure a letter of credit authorization (LCA) from Bangladesh Bank. And then a person becomes a qualified importer. He requests or instructs the opening bank to open an L/C. He is also called opener or applicant of the credit.

Letter Of Credit (L/C)

“An arrangement where a bank guarantees on behalf of his customers to make payments to the beneficiary upon presentation of documents specified in the credit”.

Letter of Credit (L/C) is a payment guarantee to the seller by the buyer’s bank. It is in fact, a Credit Contract whereby the buyer’s bank is committed (on behalf of the buyer) to place an agreed amount of money at the seller’s disposal under some agreed conditions. If the conditions of the credit do not require for presentation of specified documents, it is called Clean Credit. On the contrary, if the presentation of specified documents is obligatory, the credit is called a Documentary Credit.

Buyers and sellers enter into contracts for buying and selling goods/ services and the buyer instructs his bank to issue L/C in favour of the seller. Here bank assumes fiduciary function between the buyer and seller.

 Amendment Of L/C

Involved parties in a L/C, particularly the seller and the buyer cannot always satisfy the terms and conditions in full as expected due to some obvious and genuine reason. In such a situation, the credit should be amended. Gulshan Branch transmits the amendment by SWIFT/ Telex to the advising bank. In case of irrevocable letter of credit, it can not be revoked, amended or cancelled without the agreement of the issuing bank, the confirming bank (if any) and the beneficiary. On the other hand, revocable credit can be amended or cancelled by the issuing bank at any moment and without prior notice to the beneficiary. According to UCPDC 500 L/C must be an irrevocable one. For amended L/C’s, service charge and telex charge is debited from the party’s account accordingly.

Advising The Import L/C

Advising depicts the proof of authenticity of the credit to the seller/ beneficiary. The advising process consists of forwarding the original credit to the beneficiary. Before forwarding the advising bank has to verify the signature (s) of the L/C opening bank (Jamuna Bank Ltd., Gulshan Branch). In addition, it ensures that the terms and conditions of the L/C are not inconsistent with the existing regulations. In such a case, advising bank does not undertake any liability.

Adding Confirmation

The confirming bank does adding confirmation. Confirming bank is a bank, which adds its confirmation to the credit, and it is done at the request of the issuing bank. The confirming bank may or may not be the advising bank. The advising usually does not it if there is not a prior arrangement with the issuing bank. By being involved as a confirming agent the advising bank undertakes to negotiate beneficiary’s bill without recourse to him.

 Presentation Of The Documents

The seller being satisfied with the terms and the conditions of the credit proceeds to dispatch the required goods to the buyer. Then he has to present the documents evidencing dispatching of goods to the negotiating bank on or before the stipulated expiry date of the credit. After receiving all the documents, the negotiating bank then checks the documents against the credit. If the documents are found in order, the bank will pay, accept or negotiate to JBL. Then JBL checks the documents. The usual documents are-

  Invoice

  Bill of lading

  Certificate of origin

  Packing list

  Shipping advice

  Non negotiable copy of bill of lading

  Bill of exchange

  Pre-shipment inspection report

  Shipment certificate.

Scrutiny of Documents

First of all it must be ensured that full set of documents as mentioned in the L/C has been received. Following documents are included, namely-

1. Letter of Credit
2. Commercial Invoice
3. Bill of Exchange
4. Bill of lading
5. Insurance cover note
6. Certificate of origin
7. Others.

 Investment Against Trust Receipt (TR)

Investment against TR is called MPI. It is offered by Jamuna Bank Ltd,Gulshan Branch. From bank’s point of view, it is risky because usually no security is taken. When customer’s commitment is as good as cash, TR is then issued. Investment is sanctioned based on trust receipt (prescribed form) only. It is allowed for retirement of shipping documents and release of goods imported through L/C. Normally it is forwarded to the industrial raw materials. Profit rate is 15%. So, in this case title and possession of goods both lying with the customer. Bank officials can exercise hypothecation of raw materials. Time period is fixed based on the nature of the goods. The goods are handed over to the importer under trust with the arrangement that sale proceeds should be deposited to liquidate the advances within the specified period.

Loan against Imported Merchandise (LIM)

If the importer does not come to negotiate the shipping documents from the issuing bank then it creates LIM through the bank clears the goods from the port and holds the goods in its godown. Beside the above as soon as the imported goods come to the port the party may fall into financial crisis and requests the bank to clear the goods from the port making payment to the exporter. In this case the party later may take the goods partly or fully from the bank by making required payment (if he/she takes the goods time to time payment will be adjusted simultaneously).

Export Section:

Creation of wealth in any country depends on the expansion of production and increasing participation in international trade. By increasing production in the export sector we can improve the employment level of such a highly populated country like Bangladesh. Bangladesh exports a large quantity of goods and services to foreign households. Readymade textile garments (both knitted and woven), Jute, Jute-made products, frozen shrimps, tea are the main goods that Bangladeshi exporters export to foreign countries. Garments sector is the largest sector that exports the lion share of the country’s export. Bangladesh exports most of its readymade garments products to U.S.A and European Community (EC) countries. Bangladesh exports about 40% of its readymade garments products to U.S.A. Some exporters who export through JBL are readymade garments exporters. They open export L/Cs here to export their goods, which they open against the import L/Cs opened by their foreign importers.

Export L/C operation is just reverse of the import L/C operation. For exporting goods by the local exporter, bank may act as advising banks and collecting bank (negotiable bank) for the exporter.

Export Procedures

The import and export trade in our country are regulated by the Import and Export (Control) Act, 1950.

Under the export policy of Bangladesh the exporter has to get valid Export registration Certificate (ERC) from Chief Controller of Import & Export (CCI&E). The ERC is required to renew every year. The ERC number is to incorporate on EXP forms and other papers connected with exports.

• Registration of Exporters

Any firms/Parties desirous of undertaking export trade are requires to obtain Export Registration Certificate (ERC) from the office of the Chief Controller of Imports and Exports (C.C.I&E.), Government of Bangladesh. No person is allowed to export any goods from Bangladesh to any other country without obtaining such a certificate. Authorized Dealer should, therefore, ensure before certifying any export form, as required that the person is so registered. The registration number should be quoted on the relative EXP Form.

For the purpose of registration, an application in the prescribed form is required to be submitted to the C.C.I&E authority along with the following documents:

1.     Nationality certificate from the local Authority,
2.     Trade licence from Municipal Authority,
3.      Bank Certificate,
4.    Income-Tax Certificate,
5.    Registered partnership deed in case of Partnership concerns, Memorandum &Articles of Association and Certificate of Incorporation in case of Limited company,
6.  Copy of rent receipt of the business premises.

On receipt of necessary advice from the offices of C.C.I&E applicant is requires to deposit requires registration fee to the Treasury Office and receipted challans should be sent to C.C.I&E offices for enabling them to issue Export Registration Certificate (ERC).Every year, Registered exports are to make payment of prescribed fee towards renewal of Export Registration Certificate.

                                      Foreign Exchage Transection

ID Circular No. 1048/11  Date: January 12,2010

 Jamuna Bank Limited

International Division

Head Office

Foreign Remittance Section

On March 24, 1994 Bangladesh Taka was declared convertible for Current account International Transaction. As a prelude to this wide-ranging reforms were made in the country’s foreign exchange regime to lay the ground for a market friendly environment to induce investment, growth and productivity. Following liberalization under convertibility, most remittances are now approved by the Authorized Dealers themselves on behalf of the Central Bank. Only a few remittances of special nature require Bangladesh Bank’s prior approval.

Foreign remittance means remittance of foreign currencies from one place/persons to another place/person. In broad sense, foreign remittance includes all sale and purchase of foreign currencies on account of Import, Export, Travel and other purposes. However, specifically foreign remittance means sale & purchase of foreign currencies for the purposes other than export and import. As such, this chapter will not cover purchase & sale of foreign currencies on account of Import & Export of goods.

All foreign remittance transactions are grouped into two broad categories-

1. Outward remittance &
2. Inward remittance.

1. Outward Remittance:

The term “Outward remittances” include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveller’s cheque but also includes payment against imports into Bangladesh & Local currency credited to Non-resident Taka Accounts of Foreign Banks or Convertible Taka Account.

 Two forms are used for Outward Remittance of foreign Currency such as: –

IMP Form      : All outward remittance on account of Imports is done by form IMP.

T.M.  Form    : For all other outward remittances form T.M. is used.

Present Limit for Outward Remittance

A.   Private Remittance:

            1.  Family remittance facility:

a) Foreign Nationals working in Bangladesh with approval of the Government may remit through an Authorized Dealer 50% of Salary and 100% of leave salary as also actual savings and admissible person benefits. No prior approval of Bank is necessary for such remittance.

b) Remittance of moderate amounts of foreign exchange for maintenance abroad of family members (spouse, children, parents) of Bangladesh Nationals are allowed by Bangladesh Bank on written request supported by certificate from the Bangladesh Mission in the concerned country.

            2.  Remittance of Membership fees/registration fees etc.

      Authorized Dealer may remit without prior approval of Bangladesh Bank, membership fees of foreign professional and scientific institutions and fees for application registration, admission, examination (TOEFL, SAT etc.) in connection with admission into foreign educational institutions on the basis of written application supported by demand notice/letter of the concerned institution.

 3.   Education:

Prior permission of Bangladesh Bank is not required for releasing foreign exchange in favour/on behalf of Bangladesh students studying abroad or willing to proceeds abroad for studies. Authorized Dealers shall allow exchange facilities for this purpose according to the following drill:

1. Application duly filled in by the student as per prescribed format of Bangladesh Bank.
2. Original and photocopy of admission letter issued by the concerned institution in favor of the student.

III. Original and photocopy of estimate relating to annual tuition fee, board and lodging incidental expenses etc. issued by the concerned institutions.

IV. Attested copies of educational certificates of the applicant and

1. Valid passport.

4.  Remittance of Consular Fees:

Consular fees collected by foreign embassies in Bangladesh Taka and deposited in a Taka Account maintained with an AD solely for this purpose may be remitted abroad without prior approval of Bangladesh Bank.

5. Remittance of evaluation fee:

Authorized Dealers without prior approval of Bangladesh Bank may remit evaluation fee on behalf of Bangladeshis desiring immigration to foreign countries for getting educational certificates of the person concerned evaluated by a foreign institution. A demand note of the foreign immigration authority is required for this purpose.

6. Travel:

Private travel quota entitlement of Bangladesh Nationals is set at US$3000/- per year for visit to countries other than SAARC member countries and Myanmar, Quota for SAARC member countries and Myanmar is US$1000/- for travel by air and US$500/-for travel by overland route. Authorized Dealers may release this travel quota in the form of foreign currency notes upto US$500/- or equivalent and balance exchange in the form of TCs or total quota in the form of TCs The annual quotas mentioned above are for adult passengers. Fore minors (Below 12 year in age) the applicable quota will be half the amount allowable to adults.

Authorized Dealers may release above travel quota without prior approval of Bangladesh Bank subject to observation and satisfaction of following points-

I) The intending traveller is a customer of the AD bank or is sufficiently well known to the AD Bank or the intending traveller has paid relevant Travel Tax. The intending traveller has a valid passport.

ii) The AD should verify and satisfy itself that any foreign exchange released for an earlier travel was utilized with his journey being actually undertaken or was duly encased unutilized.

iii) The intending traveller is in possession of confirmed air ticket for journey to be undertaken and that the intended journey to be undertaken not later than two weeks after the date on which exchange is issued.

iv) The amount releases is endorsed on the passport and air ticket of the traveller with indelible ink, with the signature and the name of the AD branch embossed in the passport and ticket

However, while issuing foreign exchange to the Diplomats/ privileged persons/ UN personnel, Govt. Officials travelling on officials’ duties, such endorsement in the passports need not be made.

v) in each case of release of foreign exchange for travel abroad, photocopies of first six pages of the passport s  and the page recording endorsement of foreign exchange and photocopies of the pages of ticket showing name of the passenger, route and date of journey and endorsement of  foreign exchange alongwith the relative T.M. form should be sent to Bangladesh Bank alongwith monthly returns.

7.  Health & Medical:

Authorized Dealers without prior approval of Bangladesh Bank may release foreign exchange upto US$10,000/- for medical treatment abroad on the basis of the recommendation of the medical Board set up the Head Directorate and the cost estimate of the foreign medical institution.

Applications for release of exchange exceeding US$10,000/- should be forwarded alongwith supporting documents to Bangladesh Bank for prior approval.

9. Foreign Nationals:

i) The Authorized Dealers may issue foreign currency TCs to foreign nationals without any limit and foreign currency notes upto US$300/- or equivalent per person against surrender of equivalents amounts in foreign currencies. The TCs and foreign currency notes should however, be delivered only on production of ticket for a destination outside Bangladesh and the amount issued should be endorsed on the relative passports.

ii) Authorized Dealers may allow recon version of unspent Taka funds of foreign tourists into foreign exchange on production of the enchashement certificate of foreign currency. Recon version shall be allowed by the same AD with which the foreign currency was encashed earlier. AD should retain the original encashment certificate and relative FMJ forms where recon version exceeds US$5000/-.

10. Remittance for Haji:

Authorized Dealers may release foreign exchange to the intending pilgrims for performing Hajj as per instructions/circulars to be issued by the Bangladesh Bank each year.

11.  Other Private remittance:

Applications for remittances by private individuals for purposes other than those mentioned above should be forwarded to Bangladesh Bank for consideration & approval after assessing the bonafides of the purpose of remittance on the basis of documentary evidence submitted by the applicant.

 Official & Business Travel:

1.  Official Visit:

For official or semi officials visits abroad by the officials of govt., Autonomous/Semi-autonomous institutions etc., Authorized Dealers may release foreign exchange as per entitlements fixed by the Ministry of Finance from time to time, In such cases, the applicant for foreign exchange shall be required to submit the sanction letter and the competent authority’s Order/Notification/Circular authorizing the travel

2. Business Travel Quota for New Exporters:

Up to US$6,000/- or equivalent may be issued by an AD without prior approval of Bangladesh Bank to a new exporter for business travel abroad, against recommendation letter from Export Promotion Bureau, Bonafide requirement beyond US$6000/- is accommodated by Bangladesh Bank upon written request through an AD with supporting documents.

3.  Business Travel Quota for Importers and Non-exporting producers:

I) Subject to annual upper limit of US$5000/- importers are entitled to a business travel quota @ 1% of their imports settled during the previous financial year.

ii) Subject to annual upper limit of US$5000/- non exporting producers for the local markets are entitled to a business travel quota @1% of their turnover of the proceeding financial year as declared in their tax returns.

The same business organization engaged in imports as well as production shall however; draw business travel quota entitlement only on one count.

4. Exporters’ Retention Quota:

I) Merchandise exporters may retain upto 40% of realized FOB value of their exports in foreign currency accounts. However, for exports of goods having accounts. However, for exports of goods having high import content (such as readymade garments, POL products including naphtha, furnace oil bitumen, electronic goods etc.,) the retention quota is 7.5% of the repatriated FOB value.

Funds from these accounts can be used to meet bonafide business expenditure, such as business visits abroad, participation in export fairs and seminars, establishment and maintenance of office abroad, import of raw materials, machinery and spares etc. without prior approval of Bangladesh Bank.

Exporters may at their option, retain the foreign currency in interest bearing renewable term deposit accounts with Authorized Dealers in US Dollar, Pound Sterling DM or Japanese Yen with a minimum account of US$2000 or Pound 1500/-

ii) Service exporters (excluding indenting commission or agency commission of indenting house of buying house respectively) may retain 5% of their repatriated income in foreign currency accounts or as renewable time deposits with Authorized Dealers, Funds from these accounts can be used to meet expenses for bonafide business travel abroad.

Commercial Remittances:

1.  Opening of branches or subsidiary companies abroad:

Remittance of up to US$30,000/- or equivalent per annum may be released by the Authorized Dealers without prior approval of Bangladesh Bank to meet current expenses of offices/branches opened abroad by resident in Bangladesh or Commercial/Industrial concern incorporated in Bangladesh.

Such remittance may only be made in the names of concerned offices/subsidiary companies abroad subject top examination of following papers:-

I) Approval letter of the competent authority of the country concerned for opening the office in that country copy of report submitted to Bangladesh banks, as per prescribed format, within one month of opening of foreign branches/subsidiaries.

Before effecting remittances for subsequent years the Authorized Dealers shall verify the renewed lease agreement (if applicable and shall satisfy itself about the actual necessity of remitting funds by examining the actual and/or estimated incomes and expenses of the offices/subsidiaries abroad as revealed from the its audited accounts and the other papers/vouchers.

2. Remittance by shipping companies airlines & courier service:

Foreign Shipping Companies, airlines and courier service companies may send, through an AD, funds collected in Bangladesh towards freight and passage after adjustment of local cost & Taxes, if any without prior approval of Bangladesh Bank.

3.  Remittance of Royalty and technical fees:

No prior permission of the Bangladesh Bank of BOI is required by the enterprises for entering into agreement involving remittance of royalty, technical know-how or technical assistance fees, operational services fees, marketing commission etc., if the total fees and other expenses connected with technology transfer do not exceed.

a)         6% of the cost of imported machinery in case of new projects.

b)         6% of the previous year’s sales as declared in the income tax returns of the ongoing concerns.

The Authorized Dealers may remit such royalty and other fees without prior approval of Bangladesh Bank.

Royalty and other fees beyond the rate mentioned above may be remitted by the Authorized Dealers without prior approval of Bangladesh bank provided specific approval of BOI has been obtained by the applicant company.

4.   Remittance on account of training & consultancy.

Industrial enterprises producing for local market may remit through Authorized Dealers up to 1% of their annual sales as declared in their previous years’ tax return for the purpose of training and consultancy services as per relevant contract with the foreign trainer/consultant, without prior approval of Bangladesh Bank.

5.   Remittance of profits of foreign firms/branches:

Authorized Dealers may without prior Bangladesh Bank approval remit abroad the post tax profits of branches of foreign firms and companies including foreign banks & other

financial institutions subject to submission of relevant documents/information along with the application.

6.   Remittance of Dividend:

Prior permission of Bangladesh Bank is not required for-

i) Remittance of dividend income to non-resident shareholders on receipt of application in   the prescribe form from the companies concerned.

ii) Remittance of dividend declared out of previous years’ accumulated reserves.

7. Subscriptions to foreign media services:

On application from the local newspapers, Authorized Dealers may remit foreign exchange towards cost of subscription of news items, features, articles of foreign news agencies subject to submission of (I) contracts entered into between the applicant and the foreign news agency and (ii) NOC of the Ministry of Information.

8. Costs/ for Reuter monitors:

Authorized Dealers may remit abroad costs/fees on account of their own subscription to foreign media services such as Reuter monitor service, without prior approval of Bangladesh Bank.

9. Advertisement of Bangladeshi Products in mass media abroad:

Prior permission of Bangladesh is not required by the Authorized Dealers for remittance of charges for advertisement of Bangladeshi commodities in mass media abroad subject to submission of Invoice from the concerned foreign mass media along with the applications of the remitter. The applicant will have to submit copy of the advertisement to the Ad within one month of this issuance.

10. Bank Charges:

The Authorized Dealers may affect remittances towards settlement of dues to foreign banks of bank charges, cost of cables and other incidental charges arising in their normal course of the business without prior approval of Bangladesh Bank.

2. Inward Remittance:

The term” Inward Remittance” includes not only purchase of Foreign Currency by TT, MT, Drafts etc. but also purchases of bills, purchases of Traveller’s cheques.

Two forms as prescribed by Bangladesh Bank are used for purchase of Foreign Currencies such as.

• EXP Form: Remittances received against exports of goods from Bangladesh are done by     form EXP.
• Form C: Inward remittances equivalent to US$2000/- and above are done by Form” C”.

            However, declaration in Form C is not required in case of remittances by    Bangladesh Nationals working abroad.

Utmost care should be taken while purchasing Currency Notes, Travellers cheque, Demand Draft & similar Instrument for protecting the bank from probable loss as well as safety of the Bank officials concerned.

1.Purchase of Currency Notes, Travellers cheques, Drafts etc.

Following General observations are required in addition to common judgment/intelligent /vigilance of the dealing officers: –

i) Currency notes to be checked very carefully so as to avoid risk of purchasing counter fiet Notes.

ii) While purchasing Travellers cheque signature of the holder to be obtained on the TC/s in front of the Bank officials and should be verified with the signature of the holder already given at the time of issuance of T.Cs,

iii) Drafts should not be purchased under any circumstances unless the holder is a regular/valued customer of the bank. Indemnity Bond to be obtained for revering the amount paid in advance to the holder in case of dishonour of the instrument.

iv) Private chqeue should not be purchased under any circumstance without prior approval of Head Office.

2. Dealing In Foreign Currency Notes & Coins:

Only Authorized Dealers and Authorized Money Changer are permitted to deal in foreign currency notes & coins Authorized Dealers and Money Changers may freely buy foreign currency from incoming passengers regardless of nationality and regardless of whether or not a declaration on form FMJ is produced at the time of encashment. If this form is produced, the amount enchased should be endorsed on it

The Authorized Dealers may also purchase foreign currency notes, coins and other travel instruments freely from Authorized Money changers without production of Form FMJ.

Disposal of Foreign Currency notes. /Coins & others by Incoming passengers:

 Incoming passengers may bring in any amount of foreign exchange with declaration FMC at the time of arrival. No declaration is necessary for amounts up to US$5000/- for non residents, the entire amount brought in with declaration or up to US$5000/- brought in without declaration may be freely taken out at the time of departure or may deposit the amount in F.C Account subject to submission of form FMJ for excess of US$5000.- or equivalent.

An incoming person, who is ordinarily resident in Bangladesh (I) may retain foreign exchange up to US$5000/- or equivalent brought in without declaration or (ii) take-out the same freely at the time of departure form Bangladesh without endorsement in passport and air ticket  (ii) deposit the amount in RFCD account of the person concerned

HIGHLIGHTS OF JAMUNA BANK LIMITED

Amount in Taka (Except ratio)

Problems Faced By the Bank

Jamuna Bank limited as a new generation commercial bank has facing a lot of problems in compare with the other banks. These problems are related to operation of daily banking activities, opening new branches, Bangladesh Banks rules and regulations, customer services, customer behavior, maintenance of liquid assets, lack of experienced personnel etc. The problems faced by the bank are recorded as follows:

• The first problem is related to increasing market competition. As a new bank JBL has facing some problems in case of compete with some well-set banks.
• As a new bank JBL facing the lack of experienced personnel which create some problem in case of offering better service to the customers and clients.
• The overall high cost of capital is a barring to its market expansion and due to this the operational expenses are increased.
• High cost of setting the latest technology based services is an obstacle to its rapid expansion.
• All customers are not concerned about the latest technology based services and all are not readily interested to accept the technology-based services.
• High cost of technology based services is an obstacle. Due to this customer are not interested to take these services.
• Incase of online banking low speed of network is a problem and it consumes valuable time of the busy customers.
• Due to BB order among every five branch one branch should be open in the rural area. But these branches are always not able to produce the expected return to the bank.
• Overall political unrest is an indispensable problem to the bank to provide regular service to its customers.
• In case sanctioning loan always it is not possible to study the proposal due lack of time and experienced manpower.
• JBL uses Flora Bank (Online Banking Software) which is not comprehensive software for modern banking.
• Due to increased competition JBL has to facing increasing promotional and advertising cost and it is an obstacle to rapid expansion to reaching the large people at a time.
• In case of appointment of personnel the disguised pressure of owner group creates some unavoidable problem.
• Due to tremendous financial strength of Multinational Bank JBL has facing to some problem.
• Insufficient salary of junior officer is an obstacle to provide better services.

Some Recommendations to overcome the problems:

As a new generation commercial bank yet JBL facing to some serious problems but it is also true that these problems may be turn into opportunity if the authority takes some initiatives. The initiatives may be as follows:

• The working condition should be improved. Employees must be provided with adequate working equipment in order to provide better customer service.
• JBL should recruit experienced personnel from other banks and financial institutions in order to provide better and efficient banking services and ensuring growth.
• Multipurpose new schemes should be introduced to attract the clients and to enhance the deposit.
• In case of sanctioning loan and advances the documents should be properly check and appraised in order to ensure repayment of the loan amount.
• Ensure the security / collateral has been assessed correctly and the security is maintained properly.
• Ensure that the disbursements are made as per procedure and terms of sanction.
• Ensure collection of periodical reports, returns and information about the borrower and the activities of projects financed.
• The competing banks performance should be carefully monitor regularly.
• New branches should be opened in the economically promising area.
• Attractive incentive packages should be provided to the exporter.
• Political and organizational pressure should be eliminated in case of sanctioning loan.
• Account opening process should be made easy to attract the customer.
• New and modern banking equipment should be arranged for providing better services.
• Flora Bank, the online banking software should be regularly updated.
• Bankers Customer relation should be closer and regular communication with the customer should be maintained.
• Bank should regularly review and update the present marketing strategy.
• Banks own training institute should be established.

Conclusion

From the very of civilization of time Banking activities is a critical job and the present days banking business is very competitive and complex. Banking sector, as a service sector of Bangladesh continues to contribution to a great deal in the economy of Bangladesh.

Jamuna Bank Limited is the Third generation most modern commercial bank which has passed four years in operation and now enjoying the fifth year of operation. In this age of competition, every bank is passing the operational functions in hard competition. Yet it a newborn bank though it is pt affect4ed by this danger. JBL is marching in an aggressive way to reach the all levels of clients and customers, which ensure certain, and mentioning position in the market.

This report is being done on the subject of “Operational Commercial Bank: A Case study on Jamuna Bank Limited, on Gulshan Branch.” From the survey and observation of the study I try to gain some practical experience on critical general banking system. From the observation of the study I have gain some practical knowledge on account opening, cash receipt and payment, sanctioning of loan and advances, foreign trade and foreign exchange mechanism, local and foreign remittances, complex clearing process etc. I think this experience will set me in the advantageous position in future.