Deposit Collection Activities of Prime Bank Limited

Main objective of the report is to analysis in depth analysis of Deposit Collection Activities of Prime Bank Limited. Other objectives are to identify the way of deposit collection that are using by the Prime Bank Limited and present their recent performance on deposit collection as a partial in banking industry. Finally to know about the product and service offered by Prime Bank Limited and know the work process and monitoring system of Deposit.

Objective of the Report

Broad Objective:

The major objective of the report is to make an in depth analysis of Deposit Collection Activities of Prime Bank Limited.

Specific Objective:

The specific objectives of the report are

• To know about the operation of Prime Bank Limited of Dhanmondi Branch as a private commercial bank.
• To have a clear knowledge about all the division and departments of Prime Bank Limited of Dhanmondi Branch.
• To identify the way of deposit collection that are using by the PBL.
• To present their recent performance on deposit collection as a partial in banking industry.
• To know about the product and service offered by PBL.
• To know the work process and monitoring system of Deposit.

Methodology of the Report

This report has been prepared on the basis of experience gathered during the period of internship. This study would require collection of primary as well as secondary data. Both quantitative and qualitative research methods will be adapted to analysis data.

Sources of information

Sources refer to the origin from where we have collected all the information. The reliability of the report depends on the source of the information. Both primary and secondary sources of report writing are discussed below.

Primary Sources of Information

• Observation of Banking Activities
• Conversation with employees, expert opinion of PBL

The secondary sources

• Annual report of Prime Bank Limited;
• Desk report of various concern departments
• General banking manual

Background of Prime Bank Limited

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with a different outlook. For them it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Limited was created and commencement of business started on 17^th April 1995. Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank, the Central Bank of the country on April 17, 1995 through the opening of its Motijheel Branch at Adamjee Court Annex Building, Motijheel commercial area, Dhaka-1000. PBL was actually registered under the Companies Act of 1913 with its registered office at 5, Rajuk Avenue, Motijheel commercial area, Dhaka-1000 which was later shifted to Adamjee Court Annex Building, 119-120, Motijheel commercial area, Dhaka-1000.

As a fully licensed commercial bank, Prime Bank Limited has being managed by highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so does the bank adjusts itself to the changing conditions. In its 10^th year of operation in 2005, Prime Bank has made substantial headway in terms of business growth, profitability and establishing its image as one of the leading private commercial banks. Its march towards reaching greater heights in operation continues with full vigor and enthusiasm. Prime Bank has made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL Rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operations.

Prime Bank Limited offers all kinds of commercial, corporate and personal banking services covering all segments of society within the framework of banking rules and regulations laid down by the Central Bank.  Diversification of products and services include corporate banking, retail banking and consumer banking right from industry to agriculture, real state, software and other sectors. Prime Bank Limited is a fast growing private bank and it is already at the top slot in terms of quality service to the customers and value addition for the shareholders. In the last few years Prime Bank made satisfactory progress in all areas of business operation. The bank managed to further expand and consolidate its customer base in both of its core businesses and retail banking.

Prime Bank has been very selective in locating branches so that customers are better served. The bank’s currently has a network of 70 branches all over Bangladesh. The bank also plans to add a few branches to its network that will give the bank strategic advantage in terms of operation and business potential. Prime Bank’s aim is to be the leading bank in the country’s principal markets. The bank by concentrating on the activities in its area of specialization has achieved good market reputation with efficient customer service. Prime Bank consolidated its position and retained its product line and financial services aimed at various target groups. In a challenging market conditions, this bank continued to provide more innovative products and better services to retain and expand its market share. The bank is committed towards providing continuous training to its staff to keep them up to date with modern practices in their respective fields of work. This bank also tries to fulfill its share of community responsibilities. By such measures the bank intends to grow and increase shareholder’s earning per share.

COMMENCEMENT OF OPERATION

Prime Bank Ltd. started its operation on 17^th April 1995 with an authorized capital of Tk. 1000 million and paid up capital of Tk. 100 million by a group of highly successful entrepreneurs who are established in various fields of economic and business activities. The commercial and investment services of PBL range from small enterprises to big business loans to all type of customers. Besides this, the bank actively participates in socio-economic development of priority sectors like agriculture, industry, housing, self-employment, etc

VISION

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management, and profitability having strong liquidity.

MISSION

To build Prime Bank limited into an efficient. Market driven, customer focused institution with good corporate governance structure. Continuous improvement in Bank’s business policies, procedures and through integration of technology at all levels.

OBJECTIVE

The objectives of the Prime Bank Limited are specific and targeted it its vision and to positioned itself in the mindset of the people as a bank with difference. The objectives of the Prime Bank Limited are as follows:

1. To mobilize the savings and channeling it out as loan or advance as the company approve.
2. To established, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stock, debentures, and other securities.
3. To finance the international trade both in import and export.
4. To carry on the foreign exchange business, including buying and selling of foreign currency, traveler’s cheques issuing, international credit card and issuing etc.
5. To develop the standard of living of the limited income group by providing Consumer Credit.
6. To finance the industry. Trade and commerce in both the conventional way and by offering customer friendly credit service.
7. To encourage the new entrepreneurs for investment and thus to develop the country’s industry sector and contribute to the economic development.

Function of Prime Bank Limited in Dhanmondi Branch

The Prime Bank Ltd, Dhanmondi Branch has three different divisions. Those are

• General Banking Division
• Foreign Trade Division
• Credit Division

General Banking Divisions

• Account opening section
• Local remittance section
• Clearing section
• Cash section
• Cheque Book Issue and Stop payment.
• Deposit encashment.
• Providing Bank Statement
• Providing Bank Solvency Certificate
• Maintaining Security Papers.
• ATM Service
• Foreign Remittance

Local Remittance Section:

Local remittance is one of the main components of general banking.  The activities of local remittance are —

• Telegraphic Transfer,
• Demand Draft issue,
• Pay order.

Telegraphic Transfer:

It is an order from the issuing branch to the drawee bank / branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by telex and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch.

Demand Draft (DD) Issue:

Sometimes customers use demand draft for the transfer of money from one place to another. For getting a demand draft, customer has to fill up an application form. The form contains date, name and address of the applicant, signature of the applicant, cheque number (if cheque is given for issuing the DD), draft number, name of the payee, name of the branch on which the DD will be drawn and the amount of the DD. The form will be duly signed by the applicant and by the authorized officer.  PBL charges .15% commission on the face value of DD as service charge.

Pay Order:

For issuing a pay order, the client is to submit an application tothe prescribed form. This form should be properly filled up and signed. The procedure of the issuing pay order is similar to that of the Local Draft. For issuing pay order PBL charges commission on the following rate—

• For Tk. 1 to 100000, the commission is Tk.25.
• For Tk. 100000 to 500000, the commission s Tk. 60.
• For Tk 500000 to above, the commission is Tk. 75.

Payment of Pay Order:

The pay order is presented to the bank either through clearance or for credit to the client’s account.  While payment, relative entry is given in the pay order register with the date of payment

Clearing section:

The scheduled banks clear the house drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the house. Banks for credit of the proceeds to the customers’ accounts accept house and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks

Cash section:

• Cash withdrawal
• Cash deposit
• Cheque deposit

Cheque Book Issue and Stop payment:

Cheque book issue for the customer withdrawal money and stop payment is when a customer loss a cheque but is not interested to pay then he request the customer service with written application to stop payment of particular cheque .

Deposit encashment:

When a customer wants to broken his/her deposit before his/her deposit maturity. That time deposit encashment. This time customer could not get fully interest of deposit scheme

Providing Bank Statement:

Time to time account holders may need to know the status of their accounts as well as the transaction through those accounts.

Providing Bank Solvency Certificate:

Providing bank solvency certificate in various purpose. The certificate is given stating that the person has been doing transaction at a satisfactory level & has a good deposit. At the same time as statement of the account is also attached with the certificate.

ATM Service:

• Debit card
• Credit card

Foreign Remittance Division:

There is some foreign remittance which delivered to the customer. These are CFRC, Western Money Union

CFRC: It is called central foreign remittance cash flow. This money came at our country from any bank of foreign country. Customers bring high id number and mobile number to draw money.

Western Union Money: It is popular money gram way over the world. This money transferring is going on any bank of our country from other country.

Foreign Trade Division

Foreign Trade division mainly use in Letter of credit (LC) for Export & Import Business

Credit Division

The main functions of this division are:

• To Manage Prime Bank Ltd credit portfolio
• Receive credit proposal from branches
• Appraise and approve the proposals
• Sanction letters and send them to branches
• Monitor and follow up the loans and advances provided by the bank
• Set up prices for credits and ensure their effectiveness

Loan products of PBL in Dhanmondi Branch:

1. Household Durable Loan.
2. Car Loan
3. Doctors Loan
4. Advance Against Salary
5. Education Loan
6. Home Loan
7. Wedding loan
8. CNG Conversion Loan
9. Any Purpose Loan
10. Hospitalization Loan

Project part

Deposit Scheme

Bank is the largest mobilize of surplus domestic savings. For poverty alleviation, we need self employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world. In order to  Improve the savings rate, Financial Institutions responsible for mobilization of  Savings should offer attractive Savings Schemes so that the marginal propensity  To save increases. The savings do not, of course, depend only on the quantum of Income but largely depend on the habit of savings of the people. Interest rate of Savings Deposit Account is 6.00% for the year 2008.

Deposit products of PBL

1. Saving Deposit
2. Current Deposit
3. Short Term Deposit
4. Fixed Deposit

Deposit Under Scheme

• Contributory Savings Scheme
• Double Benefit Deposit Scheme
• Monthly Benefit Deposit Scheme
• Lakhopati Deposit Scheme
• House Building Deposit Scheme
• Prime Millionaire Scheme

Savings Deposit

Prime Bank Limited offers customer a hassle free and best service providing savings account through the branches all over the Bangladesh.

Benefit (Condition Apply)

• Interest rate 5.5% on average monthly basis.
• Minimum Balance in account Tk 500
• Maintain Charge yearly Tk 690
• No hidden cost
• Debit Card No Charge
• Initial Deposit 5000

Account opening (Individual/Joint)

• Two copies of passport size photograph of the account holder/person who will operate the A/C duly attested by the introducer.
• A/C introduced by current/savings account holder.
• Voter ID card photocopy of individual.
• Photocopy of valid passport /National certificate issued by the ward commissioner or chairman etc.
• One copy passport size photograph of nominee.

Current Deposit

Prime Bank Limited offers customer current deposit facility for day to day business transaction without any restriction.

Benefit (Condition Apply)

• Minimum Balance Tk 1000
• Maintain Charge yearly Tk 690
• Debit Card No Charge
• Initial Deposit 10000

Account opening

• Individual/Joint
• Two copies of passport size photograph of the account holder/person who will operate the A/C duly attested by the introducer.
• A/C introduced by current/savings account holder.
• Voter ID card photocopy of individual.
• Photocopy of valid passport /National certificate issued by the ward commissioner or chairman etc.
• One copy passport size photograph of nominee.

Sole Proprietorship

• Copy of Trade License (renew).
• Two copies Photographs of signatories attested by the introducer.
• Sole proprietorship Declaration.
• Separate Nomination from duly signed by the nominee & the account holder(s) and photograph of the nominee duly signed by the Account Holder(s) and nominee.
• Company seal.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

Partnership

• Copy of partnership Deed of the Firm attested by notary.
• List of partners with their addresses.
• Copy of Trade License (renew).
• Photograph(s) of signatories attested by the introducer’s Company seal.
• Separate Nomination from duly signed by the nominee & the account holder(s) and photographs of the nominee duly signed by the Account Holder(s) and nominee.
• Extract of the resolution of the Company for opening the account and authorization for its operation duly certified by the partners.
• Company seal according to the designation.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman etc.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

Association/Club/Charity/Trust/Society etc.

• Certified true copy of the Constitution/By-laws/Trust Deed/memorandum and Articles of Association.
• Certificate of Registration of the Association/Club/ Charity/Trust/ Society for inspection and return (along with a duly certified photocopy for Bank’s records.
• List of members of the Governing body/Executive Committee of the Association /Club/ charity/ Trust/ Society etc. with their addresses.
• Extract of the Resolution of the Association/ Club/ Charity/ Trust/ Society for opening the accounted authorization for its operation duly certified by the Chairman/ Secretary of the Association/Club/Charity/ Trust/Society etc. photographs of signatories.
• Association/ Club/ Charity/ Trust/ Society seal according to the designation.
• Photographs of the Signatories attested by the introducer.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

Limited liability public/private Company

• Certified true copy of the Memorandum and Articles of Association of the Company attested by the MD/Chairman.
• Certified true copy of incorporation of the company attested by the MD/Chairman.
• Certificate from the Registrar of Joint Stock Company that the company is entitled to commence business (in the case of Public Ltd. Co. for inspection and return) along with a duly certified photocopy for Banks record.
• List of names with appointments and specimen signatures of the person to operate the account and request the Bank open Letters of Credit/Guarantee duly certified by the Chairman /Managing Director of the Company.
• Extract of the resolution of the Board/general Meeting of the Company for opening the account and authorization for its operation duly certified by the Chairman/Managing Director of the Company.
• Photographs of the Signatories attested by the introducer‘s Company seal.
• List of the Directors with address.
• Copy of Trade License (renew).
• Form twelve of the Company.
• Company seal according to the designation.
• Company Tin certificate.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

Partnership

• Copy of partnership Deed of the Firm attested by notary.
• List of partners with their addresses.
• Copy of Trade License (renew).
• Photograph(s) of signatories attested by the introducer’s Company seal.
• Separate Nomination from duly signed by the nominee & the account holder(s) and photographs of the nominee duly signed by the Account Holder(s) and nominee.
• Extract of the resolution of the Company for opening the account and authorization for its operation duly certified by the partners.
• Company seal according to the designation.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman etc.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

For Registered Partnership additionally require

• Certificate of Registration of the Firm (for inspection and return) along with a duly certified photocopy for Bank’s record.
• Extract of the partners of the Firm for opening the account and authorization for its operation duly certified by the Managing Partner of the Firm.
• Photocopy of valid passport (1to 7)/ Nationality certificate issued by the word commissioner or chairman / Photocopy of voter ID card.

Short term Deposit

A short term deposit (STD) account is a running account with amounts being paid into and drawn out of the account continuously.

These accounts are called Demand Deposits or Demand Liabilities since the banker is under obligation to pay the money in such deposits on demand.

These accounts are generally opened by Business Organization, Public Institution, and Corporate Bodies.

An STD account may be opened by an individual person.

It is an interest bearing deposit. Interest is calculated on daily basis as per Banks Prescribed Rate and is credited to account on half yearly basis.

Current interest rate on STD account is presented in the following table

Fixed Deposit

This type of deposit should be kept for a fixed term or period. Prime Bank Limited deals with the following terms deposit.

Double Benefit Deposit Scheme

1. The Scheme shall be implemented through all the branches of Prime Bank Limited.
2. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiplies thereof but maximum limit of Tk. 25, 00,000/- (Taka twenty five lac) at a time will be acceptable under the scheme.
3. The instrument shall be issued for 06 (six) years term.
4. At maturity after 06 (six) years double the amount of deposit will be paid to the depositor.
5. Photograph of Nominee, duly attested by the depositor, shall be obtained at the time of opening the account.

Normally no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will apply:

• No benefit including interest/profit shall be allowed for pre-mature encashment within one year.
• If the accounts / deposits are closed / encased after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate.

7. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing branch.
8. In case of death of a depositor, the amount of instrument will be paid to the nominee, to the legal heirs of the depositor on production of succession certificate.
9. In case of instrument is lost the procedure for the issuance of a duplicate receipt will be the same as applicable in case of loss of FDR.
10. Under the scheme depositor can get free insurance facility.
11. Insurance coverage is only applicable to personal accident and serious illness related insurance policy.
12. Depositor can take loan against his/her deposit under this scheme.

Monthly Benefit Deposit Scheme

This is a Deposit Scheme where the depositor gets monthly benefit out of his deposit.

The scheme is designed for the benefit of the persons who intend to meet the monthly budget of their families from the income out of their deposit.

Investment of fund of Trusts and Foundations, which award monthly scholarships/ stipends to students, etc.

The salient features of the Scheme are given below:  

1. Deposit of Tk. 25,000.00 (Taka twenty five thousand) and multiples thereof, but maximum Tk. 25, 00,000/- (Taka twenty-five lac) shall be acceptable under the Scheme.
2. The Deposit shall be for a period of 5 (Five) years. The Principal amount is refundable on maturity.
3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1,00,000.00.
4. Payment of monthly profit shall start from the subsequent month after a clear minimum gap of 30 days from date of deposit.
5. In case of death of a depositor, the account shall cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force.

Normally, the deposit will not be encashable before 5 (Five) years. But if any depositor intends to withdraw his deposit before maturity due to certain unavoidable reasons, he would be allowed to do so in the following manner:

• No benefit including interest shall be allowed for pre-mature encashment within one year.
• If the accounts / deposits are closed/ encased after one year of its opening, benefit shall be allowed on the deposit at existing normal Savings Deposit rate.
• If the amount of monthly profit already paid exceeds the amount payable at normal Savings rate, the difference shall be realized from the principal deposit amount, if and when necessary.

7. Separate Application Form specially designed for the purpose shall be obtained duly filled in and signed by the depositor. In addition to this, the depositor must have a separate Savings Bank Account with the branch wherein the benefit on the amount so deposited shall be credited every month.

08.A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR.

9. The Receipt will not be transferable
10. Advance against lien on such Receipt can be allowed  up to 80% of the deposit bearing normal rate of interest prevalent at the time on Overdraft/ Loan.
11. During the period of such Overdraft/ Loan, the monthly benefit shall be credited to the concerned Overdraft/Loan.
12. Payment will be made after deduction of taxes as fixed by the Govt. from time to time.
13. In case the instrument is lost, the procedure for issuance of a duplicate will be the same as applicable in case of loss of FDR.

Lakhopati Deposit Scheme

Monthly Installment size, tenure and terminal value of the scheme will be as follows:

2. At present no income tax will be deducted from the interest earned. But in future for any change in the government policy Bank reserves the right to deduct income tax
3. The depositor will have the option to choose any installment size and period at the time of opening of the account and will not be allowed to change the size of installment afterwards.
4. Account in the name of minors can be opened too under the Scheme as per standard procedure for minor accounts.
5. A person can open more than one account for any size of installment in any branch of the Bank.
6. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment.
7. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments is acceptable
8. Normally no withdrawal shall be allowed before maturity, if any depositor intends to withdraw his/her savings due to certain unavoidable reasons before 3 years, 5 years, 10 years and 15 years, he/she will not be allowed any benefit if the premature encashment takes place before completion of 1 year. But the depositor shall be allowed interest on the prevailing Savings Deposit rate after completion of 1 year from the date of opening of the account.
9. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or Tk. 20/- whichever is higher.
10. If a depositor fails to pay 3 (three) consecutive installments he will have to pay 5% fine of the overdue installments to regularize the account. If he fails to pay more than 3 (Three) installments he will cease to remain under the purview of the scheme and the deposit will be treated as Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (one) year of its opening.
11. In case of death of a depositor, the account will cease to be operative and the amount deposited so far shall be paid to the nominee, and in absence of nominee, to the legal heirs of deceased as per rules in force.
12. Loan may be allowed up to 80% of the deposited amount against lien on the same where the deposited amount shall be at least Tk. 50,000/- and the interest rate of the loan shall be as per prevailing commercial lending rate of the Bank.
13. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme.
14. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch.  In that case, no charge will be realized for such service.
15. Normally no statement of the account will be served to the depositor, in case of need of any depositor, charges @ Tk. 10/- per year / per statement shall be realized as cost of paper. This charge may be changed from time to time.

House Building Deposit Scheme

The salient features of the Scheme are given below:

• The tenor of the House Building Deposit Scheme will be 5/7/10 years.
• Minimum Equity building amount shall be Tk. 10.00 lac.

* Age upper limit will be applicable for HBL facilities only

** Insurance Coverage will be restricted to terminal amount of Tk. 1,000,000/-(Taka Ten Lac) only; here the age limit will be from 18 years to 60 years.

3. Income Tax on interest amount shall be as per Government rule on taxation and the Bank reserves the right to deduct Income Tax.
4. The depositor will have the option to choose any installment size at the time of opening of the A/C. and will not be allowed to change the size of installment afterwards.
5. Account in the name of minors can be opened too under the Scheme but without insurance coverage.
6. A person can open more than one account but House Building Loan facility shall be on one account only.
7. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments  is acceptable.

Normally no withdrawal shall be allowed before maturity,  if any depositor intends to withdraw his/her equity due to certain unavoidable reasons before maturity, following should be applicable for accounts covering insurance:

• a. On or before completion of one year, No interest (Saving) shall be paid and Advance Insurance Premium paid to the Insurance Company shall be deducted from the final settlement.
• b. On or before completion of two years, No interest (Saving) shall be allowed and No deduction will be made.
• c. On completion of three (03) years, Saving Interest rate on the deposited amount may be allowed for accounts not covering any insurance:

• On or before completion of one year, No interest (Saving) shall be paid.
• After completion of one year Saving Interest rate on the deposited amount may be allowed.

9. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or maximum Tk. 500/-
10. When a depositor fails to pay 3 (Three) consecutive installment at any point of time before 2 years term, the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (One) year of its opening.
11. HBL facility shall be considered on maturity upon application up to three times the equity but not exceeding Tk. 50.00 lac on compliance of loan formalities
12. In case of death of a depositor, the A/C. will cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force.
13. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme
14. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service.
15. Normally no statement of the account will be served to the depositor. Incase of need of any depositor, charge @Tk.10/- per year / per statement shall be realized as cost of paper.

Prime Millionaire Scheme

The salient features of the Scheme are given below:

1. Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00 for the tenor of 5/7/10 years respectively
2. Terminal amount on maturity shall be Tk. 10.00 lac.
3. Income Tax on interest amount shall be as per Government rule on taxation and the Bank reserves the right to deduct Income Tax.
4. The depositor will have the option to choose any installment size at the time of opening of the A/C. and will not be allowed to change the size of installment afterwards.
5. A person can open more than one account.
6. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments is acceptable.
7. Normally no withdrawal shall be allowed before maturity, If any depositor intends to withdraw his/her deposit due to certain unavoidable reasons before maturity (Min after one year) interest on the prevailing Savings Deposit rate may be allowed.
8. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or maximum Tk. 500/- .
9. When a depositor fails to pay 3 (Three) consecutive installment at any point of time before 2 years term, the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (One) year of its opening.
10. In case of death of a depositor, the A/C. will cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force.
11. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme.
12. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service
13. Normally no statement of the account will be served to the depositor. Incase of need of any depositor, charge @Tk.10/- per year / per statement shall be realized as cost of paper.

Promotional activities of deposit collection

Prime Bank limited takes some promotional activities for attracting and motivated customer to deposit various types of scheme. Banking promotion board is presently conducting different program in Radio and Television.

• Advertising on Television in news bulletin
• Managing Interaction programs
• Television Talk programs on the current issue, and
• Publication of News bulletin and publication of Magazine containing articles on relevant topics

Sponsored different programs of Business Community.

• Sponsored “TEXTBANGLA-2008” exhibition organized by Bangladesh Textile mills association.
• Sponsored 4^th knitwear Exposition KNITEXPO-2008, organized by Bangladesh Knitwear Manufacture & Export association (BKMEA).
• Sponsored 10^th Bangladesh Textile Exposition-2008 organized by Bangladesh Garments manufacture & Export association (BGMEA).
• Sponsored 10^th Sylhet International trade fair(SITF) organized by The Sylhet chamber of Commerce:

Donation to Education Institute

• Co-sponsored career-expo at Dhaka University.
• Sponsored International symposium on re-thinking rights & opportunities for women in Asia organized by Asian University for women;

Other-Sponsorship Programs

• Sponsored “The World Blood donor’s day” organized by Sandhani a voluntary institute of medical and dental student.
•  Sponsored “The acid survivors Foundation Media award” organized by ADCOMM limited.
• Sponsored the Bi-annual conference organized by Bangladesh Sociological Association.

Saving Deposit

During The time from 2006 to 2009, there was collected many saving deposit, which number are shown in the following table and also shown graphically presentation on figure

Table-1(Total Number of Saving Deposit A/C)

 Analysis: From the year 2006 to 2009 in this branch saving deposit account number were 2100. In 2006 number of customer was low and customer satisfaction was bad because new branch. In 2007 the saving deposit account was very good and better position large number of customer satisfies to open account. They also pleased on marketing activities of Prime Bank limited in Dhanmondi Branch. In 2008 saving account open 560. Those year’s customer service and sales promotion were better position. In 2009 customer open account 580 because most of customers were local and loyal public.     

Current Deposit

During The time from 2006 to 2009, there was collected many current deposit, which number are shown in the following table and also shown graphically presentation on figure

Table-2(Total Number of Current Deposit A/C)

Analysis: From the year 2006 to 2009 in this branch current account were 500. In 2006 number of customer was good and customer satisfaction was outstanding. In 2007 was medium level and satisfy position. Some numbers of customers satisfy to get open current account. They also pleased on marketing activities of prime bank limited Dhanmondi branch. In 2008 current account open 103 customers. Those year customer are not raising position. In 2009 decreasing current account open.

Short term Deposit

During The time from 2006 to 2009, there was collected many short term deposit deposit, which number are shown in the following table and also shown graphically presentation on figure

Table-3(Total Number of Short term Deposit A/C)

Analysis: Short term deposit like loan account. From the year 2006 to 2009 in this branch short term deposit number were 37. In 2006 number of customer was high and customer satisfaction was better. Our branch manager carefully investigated marketing promotion and results were satisfactory. In 2007 and 2008 the short term deposit account little small and band position. Little number of customers dissatisfied to get open loan account. But in 2009 those year customer service and sales promotion were better position and number of account opening 08.

Fixed Deposit

During The time from 2006 to 2009, there was collected many Fixed deposit, which number are shown in the following table and also shown graphically presentation on figure

Table-4(Total Number of Fixed Deposit A/C)

Analysis: From the year 2006 to 2009 in this branch fixed deposit in starting very slow in 2006 number of customer was low and customer satisfaction was bad. In 2007 and 2008 the fixed deposit account was very good and better position large number of customer satisfies. In 2009 little decrease because Bangladesh government decide every bank fixed deposit interest are same.

Contributory Deposit scheme

During The time from 2006 to 2009, there was collected many Contributory deposit scheme, which number are shown in the following table and also shown graphically presentation on figure

Table-5(Total Number of Contributory Deposit scheme)

Analysis: From the year 2006 to 2009 in this branch contributory deposit scheme number were 397. In 2006 number of customer was 64 and customer satisfaction was medium that time marketing promotion carefully and result was good. In 2007 number of customer increase. Those years’ customer service and sales promotion good then day by day customer are more interested to open contributory saving scheme.

 Double Benefit Deposit scheme

During The time from 2006 to 2009, there was collected many Double Benefit Deposit scheme which number are shown in the following table and also shown graphically presentation on figure

Table-5(Total Number of Double Benefit Deposit scheme)

Analysis: From the year 2006 to 2009 in this branch Double benefit deposit scheme number were 653. In 2006 number of customer was low and customer satisfaction was bad. In 2007 this scheme was very good and better position. Large number of customer satisfies to open account. The customer also pleased in marketing activities in Dhanmondi branch. In 2008 and 2009 these schemes decrease.

Monthly Benefit Deposit Scheme

During The time from 2006 to 2009, there was collected Some Monthly Benefit Deposit scheme which number are shown in the following table and also shown graphically presentation on figure

Table-7(Total Number of Monthly Benefit Deposit scheme)

Analysis: From the year 2006 to 2009 in this branch Monthly benefit deposit scheme were 65. In 2006 number of customer was high and customer satisfaction was good. Branch manager carefully investigated by marketing promotion and the reason result were satisfaction. In 2007 this scheme were small and bad position. Little number of customers dissatisfies to get open this scheme. In 2008, 19 customers those were customer service and sales promotion were better position. In 2009 little bit decline but overall this scheme balance.

Lakhopati Deposit Scheme

During The time from 2006 to 2009, there was collected many Lakhopati Deposit scheme which number are shown in the following table and also shown graphically presentation on figure

Table-8(Total Number of Lakhopati Deposit scheme)

 Analysis: From the year 2006 to 2009 in this branch lakhopati deposit scheme number were 608. In 2006 number of customer was low and customer satisfaction was bad. In 2007 this scheme was very good and better position. Large number of customer satisfies to open account. The customer also pleased in marketing activities Dhanmondi branch. In 2008 this scheme decrease then in 2009 sales promotion increase and this scheme open 133.

House Building Deposit Scheme

During The time from 2006 to 2009, there was collected few House Building Deposit scheme which number are shown in the following table and also shown graphically presentation on figure

Table-9(Total Number of House Building Deposit scheme)

 Analysis: House Building Deposit scheme high investment scheme. From the year 2006 to 2009 in this branch the number of House Building deposit scheme were 8. This scheme customer is very few. From 2006 to 2008 the number of customer was low and customer satisfaction bad. Every year was 3. In 2009 are same positions not increasing this scheme.

Prime Millionaire Deposit Scheme

During The time from 2006 to 2009, there was collected some Prime millionaire scheme which number are shown in the following table and also shown graphically presentation on figure

Table-10(Total Number of Prime Millionaire Deposit scheme)

Analysis: From the year 2006 to 2009 in this branch Prime millionaire scheme number were 98. In 2006 number of customer was low and customer satisfaction was bad. In 2007 this scheme was very good and better position. Large number of customer satisfies to open account. The customer also pleased in marketing activities dhanmondi branch. In 2008 this scheme decrease then in 2009 sales promotion increase and this scheme open 133.

 SWOT Analysis of PBL, Dhanmondi Branch

Every organization is composed of some strength and weakness, which are its internal factors. The opportunities and threats it encounters are external elements. The following will briefly list some of PBL in Dhanmondi Branch internal strength and weakness, external opportunities and threats, as I perceive from my experience.

Internal Environment:

The internal environment refers to all the factors within an organization, which impart strength or cause weakness of a strategic nature.

Strength

• It has a well reputation in the market.
• Not engaged in unfair Business practice.
• Concentrated marked.
• All employees are highly educated.
• Executive are highly qualified and experienced.
• Bank has many attractive deposit schemes.
• Effective management practice in the bank.

Weakness

• Working environment is not so good.
• Lack of proper maintenance of instruments.
• Shortage of employee.
• Deposit is lower then advances of the bank.

External environment:

The external environment includes all, the factors outside the organization which provide opportunities or pose threats to the organization.

Opportunities

• Can increase the deposit scheme.
• Can increase employee.
• Privet banks become more reliable to local office.
• Can increase the credit scheme.

Threat

• There are many competitors in the market.
• Poor interest rate.
• Competitors have more deposit.
• imposes tax and vat to profile.
• Political situation of the country.

Finding

On the Basis of analysis and practical experience on three month internship period, the following finding observed

• From the observation of various deposits accounts I find that the amount as well as the number of accounts in increasing dramatically day by day. In the year of 2009 the most accounts are decrease due to some reason like rate of Interest, account opening low etc.
• We can see the performance of yearly saving Accounts is very good rather then the deposits accounts. Other accounts like current account & short term deposit accounts are also appreciated.
• Division of labor, job rotation and job specialization should be combined rationally to achieve the standard level of performance of the personal to reduce the customer waiting time for the desire service.
• The authority should more concern about current account and fixed deposit because the chart and graph shows that these two types of accounts increase but level of increase is not as other deposit accounts.
• The account opening department needs more staff for smooth working because account opening department is very busy and need more employees to better service for the customer.
• Should be available the valuable things in the branch. For instant, pen stand, visiting card, calendar, Diary, Key ring, Table clock, Gift items to their valuable beneficiary.
• Cleanliness service should be proper up to date because various types of cheque are deposit in clearing house.
• IT assistant is needed here for emergency moment. Because Prime bank Ltd is online bank and IT system always properly needed to work.
• To provide quality service to the customer it necessary to have a trained team of an organization or an institution. For this reason the bank should recruit more fresh, bright and energetic person such as BBA & MBA etc.

Conclusion

Banks play a vital role in the economic development of the country. The popularity of banks is increasing day by day which leads to increase competition as well. Currently 52 Banks are operating in Bangladesh. All the Commercial banks are offering almost the same products and services and almost same their operation system. But the ways they provide the services are different from each other. So people choose their Bank according to their satisfaction and need. And they will prefer the bank of which service is easily accessible and understandable. One the other hand, Bank innovate new products and services to attract their desired customers. Prime Bank also has different types of Credit Program. Consumer Deposit scheme and Credit Scheme is one of innovative program of PBL and this program is very much popular for its easy accessibility and easy procedures. Since the popularity of this scheme is increasing day by day, Prime Bank take it as a challenge to become a leader of CCS through innovative and the use of above mentioned recommendations.

To conclude this report it can be said that it was a great opportunity to study the operational activities of PBL. Having passed three months in PBL Dhanmondi Branch, I have learned many activities practiced in the bank. Since the working areas were in Deposit collection activities the report may not cover all the practices of the branch. The work experience in PBL Dhanmondi Branch was very interesting and this experience will help me in great deal in my future life.

Prime Bank Limited is operating its branches on conventional based banking and Islamic Shariah based banking. Prime Bank Limited also a pioneer in online customers services, foreign exchange and distinctive loan offerings. In these ways PBL is helping in accumulating domestic savings, resource mobilization and creating job opportunities for many people which will gear up the economy as a whole.

Without bank’s cooperation it is not possible to run any business or production activity in this age. The job environment is very good at PBL Dhanmondi Branch. At the same time the service which the bank provides to its customers are very prompt and quality ones compare to other foreign and private banks. So Prime Bank Limited will survive in the banking sector with the slogan “A Bank with a difference”.

Recommendation

Prime Bank has focused on enhancing the long term sustainability of the bank, building value for the shareholders, employees and the wider community. Its activities are driven by ethical business practices and sense of responsibilities to all stakeholders. Since the start of the global economic crisis, many felt that Bangladesh will not be adversely affected by the crisis. But now we can see that slowly and gradually we are also getting affected. Bangladesh is captive to what transpires in international market and economies of leading countries. Against the background Bangladesh cannot be immune from the global economic slowdown and is most likely to be affected sooner or later. The global financial crisis is likely to adversely affect principally in three sectors, namely exports, aid-flow and foreign direct investment.

As per earnest observation some suggestions for the improvement of the situations are given below:

• Low cost deposit should be increased by procuring more current account and savings account of the total deposit to reduce total cost of fund.
• The spread between interest rate of deposits and advances should be at a sustainable level.
• Prime Bank has become centralized recently. Bank should give authority to the branches in some extent, so that they can take swift decisions.
• Providing more industrial loans. It seemed to me that the bank having a large amount of deposit is not encouraging the large scale producers that much of long term industrial loans to accelerate the economy as well as to help the economy to solve unemployment problem.
• Ensure Proper Maintenance of Office Premises. Every branch is supposed to be very neat and clean and well decorated because it matters to attract customers. They do not use proper physical cues which could help customer to not get confused about specific contact person.
• Banking is service oriented business. Its business profit depends on its service quality. So the service delivery of the branch should be closely monitored.
• Though Prime Bank is still lagging behind in upgrading their software system, the bank has the prospect to select high quality banking software which will make the banking operations easier and smoother.
• In general banking department it is necessary to implement modern banking process instead of traditional system. It should be more computerized means dynamic.
• Branch should give requisition for new printer and photocopy machine to improve their service.
• Bank’s ATM services should use better technology to fasten their services.
• Proper training should be given to all employees on regular basis to identify the suspicious transactions for Anti Money Laundering compliance policy.
• To avoid high risk of lending, bank should expand its fee based banking services e.g. Bank Guarantees, Merchant Banking, Remittance & advisory services.
• Some time the branch’s computers remain out of order and it is also true for the photocopiers. Attention should be given on proper maintenance of phone, computer, fax machine and photocopier.