BACK Ground of the report  

 As a student of Masters of Business Administration (MBA) everyone has to conduct a practical orientation in any organization for fulfilling the requirements of the 12 weeks Internship Program. The main purpose of the program is to expose the students to the real world situation .This report is done as a partial requirement of the internship program for the MBA students. This report is prepared for the internship program consisting of a major in depth study of the total banking business of Southeast Bank Ltd.

Practical knowledge is fundamental for the application of theoretical intelligence. Bearing this in mind and internship program was being included in the MBA curriculum. The goal of this analysis is to expose the student in the organizational work situation and also to provide an opportunity for applying classroom learning in practice. There are some difference between theories and practice.

This report is done as partial requirement of the 3 months internship program for the MBA students of Finance Department, The ASA University Bangladesh (ASAUB). During my internship period I joined Southeast Bank Ltd. at New Shyamoli branch. The chairperson of the Internship and Placement Committee advised to prepare reports on our assigned jobs after the completion of the Internship in the respective organizations. The title of the report is “General Banking Activities & Financial Statement Analysis”.

In order to fulfill the requirement of the Internship program it has chosen Southeast Bank Ltd The Human Resource Division (HRD) of Southeast Bank Ltd placed me to its Shyamoli Branch. The overall topic of the report has been given by course instructor .The topic of my report is “General banking and Financial Statement Analysis” of Southeast Bank Ltd”. I have done my internship in Southeast Bank Ltd, Shyamoli Branch. During this period I tried to get familiarize myself with the theoretical concept and practical process of customer service in Southeast Bank Ltd.

Primary objective:

• The primary objective of this report is to familiar with the working environment of present institutions and also fulfill the requirement of MBA theoretical knowledge gained from the coursework of the MBA program in a specific field.

Secondary Objective:

• To Understand and analyze the over all activities of Southeast Bank Limited
• To evaluate the existing activities and techniques of Southeast Bank Limited
• To study the operational efficiency of southeast Bank Limited
• To suggest the ways and means for improvement in policy and techniques
• To relate the theoretical learning with the real life situation

To write a report is necessary to select a topic. A well defined topic reflect what is going on to be discussed thought on the report The topic that has been assigned by supervision is “General Activities and financial statement analysis of Southeast Bank Limited”    The report has discussed how the bank operates their activities with their regular customers.

The study requires various types of information • past and present policies, procedures and methods of General Banking Operation. Both primary and secondary data available have been used in preparing this report.

Primary Data sources:

• Practical banking work.
• Personal discussion with the officers and executives of Southeast Bank Limited.
• Personal interview with the customers.

Secondary Data sources:

• Annual Report, Publications, Training materials of Southeast Bank Limited.
• Periodical statements of the Beak, Brochures, Booklets etc.
• Office circular

And carefully developed, disguised queries, trend and growth rate analysis, ratio analysis, graphical presentation such as pie chart, bar, graphs have been used. Raw data collected from various sources required to be processed, edited for the purpose of the study.

For this study mainly secondary source of data had been relied on, because secondary data can be an immediate and cost effective means to gaining valuable insight into research issues, provided that the information comes from reliable and timely sources. Its sample was small and no representative. The research has been started with secondary data and preceded to primary data only when the secondary data sources have been exhausted or yield marginal returns. An analytical approach has been followed to conclude the decisions. At last the study tries to give a comprehensive picture of the commercial banks’ are Annual Report of SBL. Printed forms and documents supplied by SBL.

This report covers Southeast bank’s Products and Services. Credit Policy,Organizational Overview, Management and Organizational Structure functions performed by SBL. It also covers overview of the general banking division, processes and other functions.

      The one of the main limitations of the research paper was to conduct a small scale survey on clients.

      Time period was the other limitation for collecting   information, which was only three month long.

      Insufficient supply of relevant books and journals.

      The branch is too much busy branch as for this to operate the survey on the basis of questionnaire.

      Deficiencies in data required for the study.

      Field practice varies with the standard practice that also created problem.

      Time provided for conducting the study is another important constraint.

      The employees in Prime Bank Limited are so much busy in their responsible fields; they could hardly provide little time to discuss with them.

Management Information Systems is a very wide spectrum. However the branch does not even have a separate MIS division. I could not therefore focus on MIS practices on local banks, as there is not much to deal with.

CHAPTER 2

“The bank is the life blood of modern economy”.

A bank is an establishment, which trades in money, an establishment for deposit custody and issue of money and for granting loans and discounting bills and facilitating transmission of remittances from one place to another. (Imperial Dictionary)

“A commercial banker is a dealer in money in substitutes for money, such as checks or bill of exchange”. (New Encyclopedia Britannica)“The financial institution which earn profit through acceptance of deposit extending credit, issuing notes and cheques, receiving and paying interest is called Bank”.(Notes &Notes writer)

‘Bank’ is an organization chartered by the state or federal government, principal Functions of which are:

1. To receive demand deposits and pay customers cheques drawn against them.
2. To receive time deposits and pay interest thereon.
3. To discount notes, make loans and invest in govt. or other securities.
4. To collect cheques, drafts, notes etc.
5. To issue drafts and cashier’s cheques.
6. To certify depositors cheques and
7. When authorized by a chartering govt. it may act in a fiduciary capacity.

 Definition of bank given by some authors:

• “The institution which accepts the checks of the persons from whom it collected money in current accounts is called banks”. (H. L. Hert)

• “A bank is an economic institution whose main aim is to earn profit through exchange of money and credit instrument”. (John Harry)

• “A bank is an institution the principal function of which is to collect the unutilized money of the people and to lend it to others”. (R. P. Kent)

• “Banks are the institutions whose debts are commonly accepted in settlement of the other people’s debt”. (Sayers)
• “Banks are a variety of firm for the safe keeping of money and for the granting and transfer of credit”. (Coulborn)

• “A bank may be a person or a firm or a company who deals with money like       other business organization”. (Prof. T. Hardy)

• “Bank is a real financial institution which receives deposit from a group of   vcpeople & lends it to other group of people”. (Bar Bari Block)

Owners, clients and government’s point of view:

   Objective of banking business- owner’s view point:

• Earning profits: It is main objective. Through transaction.
• Good will: By spreading banking business.

• Raising efficiency: Efficient banking system is necessary for maximizing profit.
• Rendering services: It gives various services to public and government.
• Investment of capital: proper investment of owner’s share holder’s capital is also a major objective of a bank.

 Objective of banking business- bank client’s point of view:

• Deposits: One of the banks main objectives is to accept its client’s deposits. To receive time deposits and pay interest thereon.
• Safety: Clients expect safety of their deposits from the bank. Providing safekeeping of its client’s monetary possessions and valuables is another one of banks essential objectives.
• Advice and consultation: Banks also give some advisory services to their clients.
• Representative and trustee: Banks also work as a Representative or as a trustee for their clients.
• Raising living standard: By providing interests against their deposits, banks help their clients to improve their living standard.  Developing living status of people then consumption can be increase. In this reason industry and business can be developing.
• Economic development: It is an important objective of bank that can help economic development of any country.

 Objective of banking business- government’s point of view:

• Issue of notes and currencies: Bank plays the role of issuing notes, currency circulation and preservation as a medium of transaction.
• Capital formation: Banks encourage mass people to save. Small savings turns into capital. This capital is used in building industries and many development works.
• Money market control: Banks try to control money and credit market in order to bring stability in commodity price. Government tries to stabilize the money market through banks.
• Employment: As part of their primary macroeconomic objectives, they expect banks to provide employment for its people. Usually banking business requires many professionals. In this way it can reduce unemployment problem.
• Advice in financial matters: Another objective of a bank is to provide necessary data of the country and proper advice to the government. Since banks hire a lot of financial experts and advisors, it often seeks advice from banks to help them develop policies.

The territories which now constitute Bangladesh were integral part of Mughal Empire and thereafter British-India and then Pakistan. Hence we have the common historical background of banking and banking institutions as that of Pakistan and India. For the beginning of banking in the territory now comprised Bangladesh, we must go back to the Calcutta Agency Houses. These trading firms started their banking operations for the welfare of their constituents. The important among those Houses were Messers. Alexander & Co. Messers. Fargusson & Co. both the firms started the business of banking with other business, and both were the predecessors of the early joint stock Banks in the then India. The Bank of Hindustan was the earliest bank started under the direction of the British rule in British-India.

After the partition of British-India into Pakistan and India, the territories now form Bangladesh became integral part of Pakistan and was called East Pakistan. Immediately after partition, as aforesaid, in 1987, an Expert Committee was appointed to study the issue of banking in the then Pakistan. On the recommendation of the Expert Committee the Reserve Bank of India continued its function in Pakistan up to 30^th September, 1948 and there after the State Bank of Pakistan, having been established on the 1^st July, 1948 started functioning and assumed full control of banking and currency.

Beginning of Banking in Bangladesh:

After independence the Government of Peoples Republic of Bangladesh was formally to cover the charge of the administration of the territory now constitute Bangladesh. In an attempt to rehabilitate the war-devastated banking of Bangladesh, the government promulgated a law called Bangladesh Bank (temporary) order, 1971 (Acting President’s Order No.2 of 1971). By this order, the State Bank of Pakistan was declared to be deemed as offices, branches and assets of Bangladesh Bank. On that date there existed 14 scheduled banks with about 3042 branches all over the country.

On the 16^th December, 1971, there existed the following 12 banks in Bangladesh, namely:-

1. National Bank of Pakistan
2. Bank of  Bahwalpur Ltd
3. Premier Bank Ltd.
4. Habib Bank Ltd.
5. Commerce Bank Ltd.
6. United Bank Ltd.
7. Union Bank Ltd.
8. Muslim Commercial Bank Ltd.
9. Standard Bank Ltd.
10. Australasia Bank Ltd.
11. Eastern Mercantile Bank Ltd.
12. Eastern Banking Corporation Ltd.

Nationalization of Banks in Bangladesh:

Immediately the Government of Bangladesh consolidated its authority, it decided to adopt socialist pattern of society as its goal. Hence in order to implement the above mentioned state policy; the Government of Bangladesh decides to nationalize all the banks of the country accordingly on the 26^th March, 1972, Bangladesh Banks (Nationalization) Order, 1972(President order No. 26 of 1972) was promulgated.

The undertakings of existing banks specified in the 1^st column of the table below stands transferred to and vested in, the new banks mentioned in the 2^nd column of the said table:

 Nationalization of Banks

 Privatization of Banks in Bangladesh:

Until the early 1980’s the Government owned, controlled, and directed Bangladesh’s financial systems with the objective of allocating funds to priority sectors. In 1983 the Government began to reform the financial sector interest rates on deposits were raised to provide a positive real return in deposits. Private Banks were allowed to enter, two NCBs were denationalized and another nationalized bank was converted into a limited liability company and partially privatized.

After the amendment in the nationalizing law, the Pubali Bank, the Uttara Bank and the Rupali Bank have been transferred to the private sector. These banks have now been re designated respectively as Pubali bank Ltd, Uttara Bank Ltd and the Rupali Bank Ltd. Further in order to accommodated private sector share in Bangladesh Shilpa Bank, suitable amendments have been made in the Bangladesh Shilpa Bank Order 1972 (presidents Order No. 129 of 1972). It is expected that the bank will formally get listed in the private sector in the near future. kground of the banking business in Bangladesh

The basic operation of a bank as a financial institution is to collect deposit and give loan. Other than that, for the industrial and business as well as social and economic development bank also perform some other activities. The overall banking functions can be divided into two broad categories, such as-

-Micro operations

             &

-Macro operations.

Micro operations

The banking operations, which is directly related to clients.

• Receiving Deposits: Bank collects the scattered money from people and deposits those in different accounts, such as current, savings, fixed deposits account. As a result people become interested to save and bank gathers money for investment purpose.
• Paying Interest: Bank pays interest to the depositors for the deposited money.
• Extension of Credit and Receiving Interest: Bank grants short term, mid term, long term loan and collects interest from these loans.
• Creation of Credit Deposits: Before granting loan bank tells its clients to open an account (current or savings) in that particular bank and than deposits the loan amount on that account. In this way bank creates credit deposits account through credit extension.
• Creating Medium of Exchange: Bank Through checks, bill of exchange, bank drafts, pay order, creates a medium of exchange and perform the activities of financial transaction.
• Issuing Checks: Bank issue checks against current/savings accounts to facilitate payment. For example: bearer checks, cross checks, traveler checks etc.
• Formation of capital: This is an important function of banks. Banks gather the scattered deposits from the whole country and create capital for investment.
• Issuing Notes: Issuing different types of notes are one of the major functions of central bank.
• Circulation of Money: Commercial banks help in circulation of money issued by Central bank.
• Act as a Trustee: Bank often issues bank solvency certificate for its clients. Moreover it also works as a trustee for its clients.

 Macro Operations:

The operations not limited between the clients and the bank, rather help for the overall development of country are the Macro Operation of bank:

• Investment of Capital: Bank invests the capital to different profitable industry and business in order to raise the productivity and mobility of capital.
• Role in the Economic Development: Banks invests money for the development of industry, business and trade, housing, transportation, communication.
• Transmission of Money: Banks send and receive money from one branch to another branch, even one country to another country through checks, bill of exchange, drafts etc.
• Safe custody of Money: By depositing clients money banks provide safety from theft burglary etc. By spreading the banking activities all over the country it helps to create a good and safe environment.
• Consultancy: Banks provide important and valuable advice to business organization, individuals or industry.
• Employment: Banks create employment opportunity by opening new branches all over the country.
• Controlling Money Market: The economy of the country mostly depend on the money market. Central bank with the help of the other commercial banks controls this money market.
• Credit control: Banks through loan expansion and reduction control the credit amount of the country.
• Industrial development: Industrial and commercial banks provide long term loans for the industrial development of the country.
• To set up relation: Banks try to create relationship between local and foreign business organization.

 CHAPTER 3

Southeast Bank Limited is a scheduled Bank under private sector established under the ambit of bank Company Act, 1991 and Incorporated as a Public Limited Company under Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations effective from May 25, 1995 during this short span of rime the Bank had been successful to position itself as a progressive and dynamic financial institution in the country. The Bank had been widely acclaimed by the business community, from small entrepreneur or large traders and industrial conglomerates, including the top rated corporate borrowers for forward-looking business outlook and innovative financing solutions Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the country’s banking sector as a Bank with vision. Presently it has thirty four branches in operation.

The emergence of Southeast Bank Limited at the junction of liberation of global economic activities, after the URUGUAY ROUND has been an important event in the financial sector of Bangladesh. The experience of the prosperous economies of Asian Vision” has been preciously the essence of the legend of bank’s success.

Southeast Bank Limited has been awarded license by the Government of Bangladesh as a Scheduled Bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the up capital adequacy requirement of Bangladesh bank.

Southeast Bank Limited is a complete service Bank with a various array of all-inclusive range of suspiciously tailored financial services and customer friendly simple banking products and services geared for the needs of all customers segments. SEBLs operations consists of:

  Real Time on line banking.

  Credit Card.

  Debit Card.

  ATM

  International Trade finance.

  Commercial Banking.

  Investment Banking.

  Investment Banking.

  Project Finance.

  Syndication Loan.

  Mortgage Loan.

  Hire Purchase.

  Retail Banking.

  Foreign Remittance.

SEBL believe that customers’ are the kings and they serve the kings. Southeast Bank Limited is a customer oriented modern banking institution and they believe in managing with a long-term approach. The employees of SEBL understand that providing better value to the customers is their true competitive advantage, and they consider it in every decision they make. When SEBL participates with their customers and others they establish and maintain the highest standard of performance. The customer must be at the center of all their (SEBL) choices.

To be a premier banking institution in Bangladesh and contribute significantly to the national economy.

  High quality financial services with slate of the art technology.

  Fast & accurate customer service.

  Sustainable growth strategy.

  Follow ethical standards in business.

  Steady return on shareholders’ equity.

  Innovative banking at a competitive price.

  Attract and retain quality human resource.

  Integrity

 Respect

  Fairness

  Harmony

  Team spirit

  Courtesy

  Commitment

  Service Excellence

  Insight and Spirit

  Enthusiasm for Work

  Business Ethics

  Transparent and quick decision making;

  Efficient team of performers

  Satisfied customers

  Internal control

  Skilled risk management

  Diversification

Ours is customer focused modem banking institution in Bangladesh. Our business motives center on the emerging needs of the market our commitments to the clients re the following:

  Provide service with high degree of professionalism and use of modern technology.

  Create life-long relationship baaed on mutual trust and respect.

  Response to customer needs with quickness and accuracy.

  Sharing their values and beliefs

  Grow as our customers grow.

  Provide products and services at Competitive pricing

  Ensure Safety and security of customers’ valuables in Crust with us.

Southeast Bank is one of the most disciplined Banks with a distinctive corporate culture.

Making. The people of bank can see and understand events, activities, objects and situation in a distinctive way They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to them The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate culture.

  Make sound investments.

  Meet capital adequacy requirement at all the time.

  Ensure a satisfied work force.

  Ensure 100% recovery of all advances.

  Focus on fee-based income.

  Adopt an appropriate management technology

…..A bank with vision

 SEBL,S MANAGEMENT TEAM

SEBL,S ORGANIZATIONAL STRUCTURE

The Chairman is the head of the Board of Directors. There is one Managing Director who is also the President mainly controls and supervises the major division of the bank. One Deputy Managing Director reports to him. Four Executive Vice Presidents (EVP) and one Senior Executive Vice President (SEVP) report to the Deputy Managing Director. Executive vice President Control the Senior Executive Vice President controls the human resource and marketing divisions. Four Vice Presidents work under Executive Vice Presidents.

The organization structure of Southeast bank Limited is quite horizontal were each person reports to only one person which refers to a very group-working environment for example. Each officer reports to the FAVP or AVP or FVP or VP or SVP or EVP, AVP or FVP or VP or SVP or EVP reports to the SEVP; SEVP report to the Deputy Managing Director and he report to the Managing director.

In the organization structure of Principal Branch, SBL we can also observe that each person reports to only one person. One Executive Vice President is the head of branch one First Vice President (Operation Manager) and the in Charges of credit and foreign exchange department directly report to the EVP. The Operation Manager controls the general banking, cash, accounts and computer department.

 Organizational Layout of Southeast Bank Limited in Cash Department:

Organizational Layout of Southeast Bank Limited in Information Technology Department:

 Five years performance at a glance:                            In million taka

SWOT is a short form that is used to describe the particular strengths, weakness, opportunities and threats that are strategies factors for a specific company. For the Southeast Bank Limited I found it as follows:

SWOT analysis for SBL.

 General Banking

General banking is the most important division for any commercial bank. This division is designed to provide the customers in depositing money, smoothing transactions for people and ensure security of the precious wealth of the customers. The functions of General Banking categorized as follows:

• Account Opening.
• Receipt and Payment of Cash.
• Remittance
• Bills and Clearing.
•  Deposits and Saving Certificates.

Product and Services

(A)SEBL,S Product

Conventional Banking

  Savings (SB) Account

  Current (CD) Account

  Short Term Deposit (STD)

  Fixed Deposit Receipt (FDR)

  Double Benefit Scheme (DBS)

  Millionaire Deposit Scheme (MDS)

 Islamic Banking

  Mudaraba Savings (SB) Account

  Al – Wadiah Current (CD) Account

  Mudaraba Short Term Deposit (STD)

  Mudaraba Fixed Deposit Receipt

  Mudaraba Double Benefit Scheme

  Mudaraba Millionaire Deposit.

  Mudaraba Hajj Sanchay Prokalpa

 Loans & Advances

  Working Capital Finance

  Overdraft (OD)

  Project Finance

  Syndicated Loan

  Packing Credit

  Loan Against Export Bill

  Loan Against Trust Receipt

(B).SEBL Services

Small & Medium Enterprise (SME) Banking

Period of Loan

  Continuous Loan: 01 (one) year.

  Term Loan: Maximum 05 (five) years.

Loan Ceiling

  For small enterprise: Taka 2.00 lac to Taka 30.00 lac.

  For medium enterprise: Taka 2.00 lac to Taka 50.00 lac.

Dual Currency VISA Credit Card

     Feature and Benefits

  Single Card-Dual Use (Local & International)

  20 – 50 Days Interest Free Credit Facility

  50% Cash Drawing Facility at ATMs and any Southeast Bank Branch

  100% Cash Drawing Facility at purchase mode through Card Cheque

  Easy Repayment

  Auto Payment facility

  Payment of International Roaming Bill of Mobile Phone

  Free Supplementary Cards

  SMS Push – Pull Service

Remittance Business

Our over six million expatriates are a source of pride for Bangladesh. They represent us abroad by building our image. They also spread the richness of our cultures across the globe. In that sense, they are the ambassadors of goodwill for Bangladesh. Their contribution is equally important, if not more, in the contribution they make to the economy of the country. The foreign exchange they send home is the second largest source of much needed foreign exchange for our economic development. In fact if we adjust import costs against export of the garments sector that overtly brings more foreign exchange to the national economy, remittance will figure as the single largest source of foreign exchange for Bangladesh. Nationalized and private banks are the principal agents for bringing remittance to the country.

Although Southeast Bank has entered into remittance late compared to the other private banks, it has continuously strived to build its remittance business around quality service by making it easy for remitters to remit money through a network of agreements with reputed banks and remittance houses abroad and an extensive network in the country to deliver the money to the beneficiaries at their door in the quickest possible time and without hassles.

We deliverer money to the beneficiaries without service charges. We assure confidentiality in transactions. Additional features of our one – stop remittance delivery service are:

  Use of mobile and SMS to contact the beneficiary.

  Home delivery of remittance business where necessary and possible.

  Initiate Remittance Card Service for use in ATM booths.

  Register data for later use for instant cash payment over the counters.

  On line account credit to those who have accounts with branches of Southeast Bank.

  Account credit services using on line facilities of other banks.

  EFF/TT services.

  Mail transfer (MT).

  Assist in opening Wage Earner Accounts.

  Assist in opening accounts under different types of savings schemes.

  Provide anti money laundering advice.

 Western Union Money Transfer Services

Western Union, a global leader in money transfer service, helps to send money to loved ones quickly and reliably with convenience and control through more than 245,000 Western Union Agent locations in over 200 countries and territories. Western Union money transfer service is ideal for transferring money virtually at any time, anywhere, providing a high level of security, flexibility and reach with the fastest, easiest money transfer solutions.

With the signing of the Representation Agreement between Western Union Financial Services, Inc., U.S.A. and Southeast Bank Ltd., Bangladeshi Wage Earners abroad can now send their hard – earned money through Western Union and their families and friends can receive the money in minutes by visiting any of the 56 branches and 10 SME locations of Southeast Bank Ltd. all over Bangladesh. The Beneficiary does not have to pay any fee to receive the money transfer.

With Western Union and Southeast Bank Ltd., money transfer has never been so easy; it is a 3 step process:

  The sender will receive money receipt with Money Transfer Control Number (MTCN) from any of the Western Union agent location outside Bangladesh after depositing money.

  The sender will inform the money transfer detail (amount of money sent, sender’s name, receiver’s name, destination country, and MTCN) to the receiver.

  The receiver will receive the money from any of the 66 Branches of Southeast Bank Ltd. by showing a valid Identification and filling a form.

Money transfers can be received from 9.00 A.M. to 3.00 PM on Sunday through Thursday and from 9.00 A.M. to 12.00 PM on Saturday in 17 Authorized Dealer branches.

 SWIFT Services

The Society for Worldwide Inter Bank Financial Telecommunication (“SWIFT”) operates a worldwide financial messaging network. Messages are securely and reliably exchanged between banks and other financial institutions. Southeast Bank Limited has SWIFT services. The Bank’s SWIFT address is SEBD BD DH.

 Locker Service

A client must have a CD or STD or SB or any type of account in the respective branch where they wants to avail the locker service.

 SMS Banking

 Pull Services:

  Account Balance Inquiry

  Foreign Currency Exchange Rate

  Branch Location / Telephone No.

  ATM Booth Location

 Request Services:

  Fund Transfer

  Mobile Bill Payment

  Cheque Book Request

 Execution Services:

  Stop Payment

  Stopped Cheque Leaf Reactivation

  PIN Change

 Alert Services:

  Debit Alert.

  Clearing Cheque Return Alert.

  Loan / Time / Scheme Deposit Maturity Alert.

 ATM Services

Southeast Bank Limited is a member of the E-cash Shared ATM Network. E-Cash has a network of 32 ATM’s located in strategically important locations on five important cities / towns of the country namely: Dhaka, Chittagong, Sylhet, Cox’s Bazar and Rajshahi. We are providing ATM service coverage to our 30 branches.

 Eligibility

  We are issuing ATM card against SB, CD & STD Account.

 Fees & Charges

  TK 500 for annual / renewal fee.

 Foreign Trade

Export

  Export LC Advising

  Export Packing Credit

  Export Bill Negotiation

  Retention quota facility for the exporter

  Provide complete documentation, lower cost, faster processing.

Import

  Import Services

  Import Letters of Credit

  Import Collection Bill Services

  Back to Bank L/C facility against Export LC.

  Post shipment finance such as LIM, LTR etc for your immediate liquidity.

Details about conventional banking

 Current Account (CD):

 Current Account can be opened for individuals and business concerns including non-profit organization.

 A current Account shall be opened with a minimum balance of TK.5, 000.

 A current Account shall be opened with an initial cash deposit.

 Minimum Balance 10 be maintained in current a/c is TK.5,000.

 Frequent transactions (both deposits and withdrawals) are allowed in the account.

 Cheque book shall issue to the account holder having a minimum balance of Tk.5,000/intbea/c.

 A current Account holder can draw cheques on their accounts for any amount and any number of times in a day subject to the availability of balance.

 No interest shall be allowed on a current a/c.

 Statements of account shall be dispatched to all account holders by the bank specified in the A/c opening form while opening an a/c.

 A Current Account can be overdrawn subject to arrangement.

 The hank at its discretion shall realize charges for dishonored/bounced cheque drawn on bank but returned for insufficient balance as per his rate approved by Head Office from time to time.

 The bank reserves the right to reserves or close any account without assigning any reason thereof.

 Every change of address shall be intimated to the bank.

 “Notice” stopping payment of any cheque shall be made by account holder in writing, which shall be recorded.

 The bank shall accept “Standing Instructions” from the account holder(s) to make periodical payment to Insurance Companies, Clubs, Societies, and Landowners. Bills Payment to shopkeepers/Finns etc. against payment of prescribed service charge.

Documents required for current Deposit account:

The following documents duly completed shall be obtained from the customer at the time of opening of

I. Individual/Joint A/C

II. Partnership A/C

III. Proprietorship A/C

IV.   Societies, Clubs. Associations A/C

 Current Deposit account opening Form

 Specimen Signature Card

 Two copies of Passport size photograph duly authenticated by (he

  Photocopy of the Trade License Duty Attested

 Mandate or authority form for operating on an individual. Proprietorship is to be obtained if a customer wants to authorize another person to operate an account on his behalf

 Certified true copy of bye-laws/rules and regulations/ constitutions in case of societies, clubs, associations and limited Companies in case of corporations and autonomous bodies, Act/Ordinance etc.

Certified true copy of the Resolution Authorizing opening and opening and operating of account with the Bank passed by the Executive Committee/Managing Committee of the Society/Club or Association, Limited Companies etc. In case of corporations and autonomous bodies copies of the Act or Ordinance showing authority to open account and letter from the authorized person in the absence of any board.

 List of members of the Executive Committee/List of Directors.

  Partnership Deed or in lieu there of partnership letter in case of partnership firms.

 Copy of  Passport/Nationality   Certificate/Voter  ID   of  the  persons operating and account

 KYC. Transaction Profiles

 Savings account (SB):

v Savings Bank Account shall be opened in the name of adult individual o jointly in the names of two or more persons payable either or both or all of them or to the survivor or survivors.

 Savings account shall be opened in the names of Clubs, Associations and similar institutions.

 A savings a/c shall be opened with an initial cash deposit.

 No person shall be allowed to open more than one a/c in his/her name. But this /her name in respect of each minor child.

 Present and permanent address of the person in detail shall be obtained.

 Cheque book shall issue to the a/c holder having a minimum balance of TK.5000/=

 A saving a/c depositor shall deposit money as often as he wishes.

 The minimum balance required to be maintained at all limes is TK.5000/- and the bank reserves the right lo change the minimum balance requirement and/or to close such accounts without prior notice if the balance fails below this amount.

 A depositor can withdraw from his Savings Bank Deposit Account twice in a week, 25% of his/her balance or TK.25000/- whichever is lower. If any depositor wants to withdraw mote than 25% of (he balance or more than TK 25000/-.7 days prior notice is required to be served to the Bank for the information .otherwise the customer shall not be entitled to get interest for that month. To any depositor repeatedly withdraws more than 255 of the balance or more than TK.25000/- or more than twice in a week, service charge as applicable for Current Account shall he applicable to that SB account.

 Interest shall be applied on half yearly basis at the prescribed rates as advised by Head Office from time to time.

 Rates if interest shall be altered from time to time and the customer from die concerned Branch should ascertain this. Any alteration in me shall be displayed at the Branch premises.

 Interest shall be allowed only on account bearing a minimum balance of TK.5,000/- per calendar month. Subject to the foregoing, calculations shall be made for each calendar month on the lowest credit balance/monthly minimum balance in an account for that month.

 Statement of account shall be dispatched to all Account Holders by the Bank on a quarterly/half yearly basis as per desire of the customers to be specified in the a/c opening form while opening an a/c.

 It is in the interest of the account holder to inform the Bank of every change of address immediately for regularity of records.

 The Bank reserves the right to refuse or close any account without assigning any reason thereof.

 The bank reserves the right to stop issuance of new cheque book to any customer.

 Saving Bank Account shall not be allowed to be conducted as Current Account

 If the provisions of these rules are contravened continually the Bank shall be empowered to levy a service charge at its discretion.

 The depositor shall hold the Bank free from any and all responsibilities for and to indemnify the Bank against any loss or damage of funds, securities or properties deposited with the Bank due to any negligence on the part of the customer or any order of Government or other legal Authority, law, levy, tax, embargo, moratorium, exchange restriction or any other causes what so ever beyond Bank’s control.

 A serving account shall not allow being overdrawn.

 “Notice” stopping payment of any cheque shall be made by account holder in

 The Bank shall accept “Standing Instructions” from die account holders to owner Bills Payment to shopkeepers/Firms etc. against payment of prescribed service charge

  Documents required for savings accounts:

 Account Opening Form

  Specimen Signature Card

 Mandate or authority shall be obtained in case the customer wants to authorize another parson to operate the account

  Two copies of recent photograph of the A/C holder and mandate duly attested by the account holder.

 Copy of passport/Nationality Certificate/ Voter ID of the persons operating the account.

 KYC. Transaction Profile.

 Special Notice Deposit (SND) Account:

Special Notice Deposit (SND) is an interest bearing deposit where advance notice is required for withdrawal. SND Account is very much similar to CD Account.

Features and Benefits

 Bank pays attractive interest.

 Personalized MICR Cheque Book is available.

 Nominal service charge.

 Any branch banking facility (Cash withdrawal and deposit from any branch)

 Bank accepts and supports Standing Instructions.

 Nomination facility is available to nominate beneficiary for account proceeds.

 Interest is payable on half yearly basis.

 Charge free statement of A/C, Balance Confirmation Certificate twice in a year on half yearly / yearly basis.

 Option is available to collect e – Statement on monthly basis.

Eligibility

 SND Account can be opened both for Individual and Corporate bodies.

  SND Account can be opened both for resident and non – resident Bangladeshi Nationals.

 Age bar for Personal SND Account: 18 years or above.

 Joint account can be opened.

 Minor account can be opened under the supervision of his / her / their guardian.

 Account can be opened in the name of Trust / Club / Association / Societies / Non – Trading Concerns.

 Requirements

Applicants must satisfy the following documentation requirements:

Personal Banking

 Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License.

 Two copies of recent passport size photograph duly attested by the introducer.

 Certified document(s) for source of income.

 Tax Certificate.

 Proof of communication address: Photocopy of an Electricity Bill / Gas Bill / Wasa Bill / Telephone Bill.

 The account requires to be introduced by an existing and satisfactory account holder of Southeast Bank Limited.

 Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

 Nominee form and photograph of nominee(s) (signature attested by the account holder). In case of minor nominee, copy of the birth certificate and photograph required;

 Personal Information Form.

 Transaction Profile.

 KYC Form.

Corporate Banking

 Sole Proprietorship Concern

 Copy of valid Trade License;

 Declaration for opening foreign currency account duly filled in and signed;

 Recent passport size photograph(s) of signatory attested by the introducer.

 Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License.

 Sole Proprietorship Declaration;

 Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

 Official Seal;

 Tax Certificate;

 Personal Information Form.

 Transaction Profile;

 KYC Form

Partnership Concern

 Copy of Partnership Deed of the Firm (Registered / At least notarized);

  Firm Registration Certificate (if registered);

 List of Partners with their addresses;

  Copy of valid Trade License;

  Recent passport size photograph(s) of signatory / signatories attested by the introducer. (Photograph(s) of the signatory / signatories of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

 Photocopy of Citizenship Certificate / Passport / Voter I.D. Card / National I.D. Card / Driving License. (Photocopy of valid Passport of the signatory of non – residents of Bangladesh shall be attested by the their respective Embassy / Mission authority);

  Resolution of the partners of the firm for opening the account and authorization for its operation duly certified by managing partner of the firm;

  Initial deposit of Tk 5,000/- for urban clients and Tk 1,000/- for rural clients.

  Official Seal;

 Tax Certificate;

 Personal Information Form.

 Transaction Profile;

 KYC Form

  Short term Deposit A/C

 Short Term Deposit A/C [STD/Special notice deposit account are opened usually by Corporations, Banks, Financial Institutions. Public Limited

 The deposits held in these accounts shall be payable on 7 to 30 days prior notice. IF otherwise, interest for the month shall not be allowed.

 The rate of interest on such deposit is subject to change to be fixed by Head Office from time to time.

  Interest shall be paid in the client’s account on daily product basis to be calculated at the end of each calendar year.

  Statement of account shall be dispatched to all account holders by the Bank on a monthly/quarterly/half yearly basis as per desire of the customers to be specified in the A/C opening form while opening an A/C.

Documents required for short term Deposit Account:

Short term deposit account shall be opened in the account opening forms used for current deposit account and the documents required for current A/C shall be equally applicable for STD A/C. In case of a STD A/C on the lop of current deposit A/C opening form the word -“Short Term Deposit Account” shall be written in the block letters and the notice period shall be noted on the Specie] Instructions column.

Fixed Deposits A/C:

 Fixed deposits are neither transferable nor negotiable.

 Fixed Deposits shall be opened singly or jointly

 Fixed Deposits shall be opened in the name of a minor jointly with the guardian

 Fixed Deposits shall be opened tot a period of one month and above

 Interest on Fixed Deposits shall be payable at the rates fixed by Head Office

      from time to time, depending on the period of maturity.

 The branch shall take prior written approval from Head Office on case-to-case basis in case of issuance of any FDRs for the period above one year.

 Interest accrued on FDRs shall be paid only on maturity of the instruments.

  In case of pre-mature encashment of FDR, interest shall be paid as per the circular to be issued by Head Office from time to time.

  Different amounts of FDR purchased on different dates by any depositor shall be considered as separate deposits and rate of interest shall be applied as per the prescribed rate sheet for those deposits.

  Payment of FOR shall be made on demand after the expiry of the maturity period on presentation of FDR duly discharged by the depositors(s).

  The FDR shall be paid before die expire of the maturity period at the request of the party. For payment of interest on premature FDR Head Office Circular issued from lime to time, is to be followed.

  If an FDR is issued to one individual, additional name(s) shall be added/ included in the FDR at his request.

  If FDR is in joint names and request for adding additional named.) comes of all other depositors.

 Each time FDR is opened it shall be considered as a separate contract.

  Various deposits in the name of (be same depositor or in the names of the

Documents required for FDR Account:

 Account opening form for FDFL

 Specimen Signature card.

 KYC

 Special savings Schemes:

The types of special purpose Deposits/Savings schemes along with their operational procedures are:

 Pension saving scheme (PSS):

 With this scheme One can save on a monthly basis and this shall ultimately grow into a large amount of money the duration of 4, 6, 8 and 10 years.

 Monthly installment size to be deposited TK500/ or multiple up to TK.25000/-

  A person of 18 years of age and above can open the account.

  A person can open more than one PSS account for different amount at any branch of the Bank and in such case separate form shall be filled.

 The applicant shall open a Cc/Saving Account with the branch from where monthly installment shall be realized automatically.

 Separate photograph and introduction shall not be required for PSS account as this is covered in his/her SB/CD account opened with the bank.

 PSS account can be opened any time of the month. But if the account is opened after 10^th of any month in That case 1^st installment shall be due from the following month and shall be realized m the following month.

 The account holder shall give a standing instruction to the branch and installments shall be realized to the PSS account by debiting designated CD/SB account within the first 5 (five) working days of the month.

  An account holder requires nominating one or more person(s)s) as his/her nominee(s).

 PSS account can be opened at any working day of the month.

 One can close the account before maturity.

 Maturity values of PSS in different period

Monthly saving scheme (MSS):

 With this scheme One can save on a monthly basis and this shall ultimately grow into a large amount of money the duration of 3 years or 5 years

 Monthly installment size to be deposited TK500/ or multiple up to TK.25000/-

 A person of 18 years of age and above can open the account.

 A person can open more than one MSS account for different amount at any branch of the Bank and in such case separate form shall be filled. The applicant shall open a Cc/Saving Account with the branch from where monthly installment shall be realized automatically.v Separate photograph and introduction shall not be required for MSS account as this is covered in his/her SB/CD account opened with the bank.

 MSS account can be opened any time of the month. But if the account is opened after 10^th of any month in That case 1^st  installment shall be due from the following month and shall be realized m the following month.

 The account holder shall give a standing instruction to the branch and installments shall be realized to the MSS account by debiting designated CD/SB account within the first 5 (five) working days of the month.

  An account holder requires nominating one or more person(s) as his/her nominee(s).

  MSS account can be opened at any working day of the month.

  One can close the account before maturity.

Maturity value, of MSS in different period

Monthly income Scheme (MIS)

The Bank introduced “Monthly Income Scheme (MIS)” which shall generate a regular fixed monthly income to meet individuals’ various needs.

 Duration of the account: 3 (three years and 5 (five) years.

Amount to be deposited: TK. 100000/- or it’s multiple

 Deposited amount shall be returned on maturity.

Amount of fixed monthly income to be paid as per HO circular issued from time to time.

 An account holder may close the account at time by a written application by giving reasonable notice in writing to the branch concerned.

 All rules/instructions/operational procedures to be followed as per the HO circular to be issued from time to time.

 Millionaire Deposit Scheme (MDS) Account:

Millionaire Deposit Scheme is a time specified monthly deposit scheme for clients where the deposited money will become millions on maturity.

Features and Benefits

Tenor: 4,5,6,7,8,9 and 10 years term;

 Deposit on monthly installment basis;

Attractive rate of interest;

 Account can be opened at any working day of the month;

 Monthly installment can be deposited through a standing debit instruction from the designated CD/SB Account;

Monthly installment can be deposited in advance;

 An account can be transferred from one branch to another branch of the bank;

 Credit facility for maximum of 2 years can be availed at any time during the period of the scheme;

Allowed to open more than one MDS Account for different amount at any branch of the Bank;

Eligibility

 MDS Account can be opened both for Individual and Corporate bodies.

Only Resident Bangladeshi National is allowed to open Personal MDS Account.

 Age bar for opening of Personal MDS Account: 18 years or above.

 Joint account can be opened.

Minor account can be opened under the supervision of his / her / their guardian.

Fees & Charges

Account transfer fee is Taka 500/-;

 Account closure fee is Taka 500/-;

Penalty of Taka 200/- for failure to pay monthly installment within the stipulated time;

  VAT applicable for all fees & charges @15%.

 Double Benefit Scheme (DBS) Account

Double Benefit Scheme is a time specified deposit scheme for clients where the deposited money will be doubled on maturity.

Features and Benefits

 Amount to be deposited TK 10,000 or its multiple;

  Deposited amount will be doubled in 7.5 years;

  Account can be opened at any working day of the month;

  Allowed to open more than one DBS Account at any branch of the Bank;

  Loan facility against lien of DBS Account;

 The Scheme is covered by Insurance and Insurance Premium is borne by the bank;

 Premature closure facility.

 Eligibility

  DBS Account can be opened both for Individual and Corporate bodies.

  Only Resident Bangladeshi National is allowed to open Personal DBS Account.

  Age bar for opening of Personal DBS Account: 18 years or above.

  Joint account can be opened.

  Minor account can be opened under the supervision of his / her / their guardian.

 Fees & Charges

  No fees and charges

 Fixed Deposit Receipt (FDR):

Fixed Deposit Receipt offers the customers the opportunity to invest a fixed amount for a fixed period at a fixed rate of interest. The customers have the option to re – invest their funds both principal amount and interest amount on maturity or principal amount and the interest amount being paid into their SB or CD accounts.

 Features and Benefits

  Money can grow with attractive interest rate with flexible tenure.

  Automatic renewal facility at maturity.

  Loan facility against FDR to meet urgent financial needs.

  The customer may avail loan facilities against FDR as security.

  Premature closure facility at savings rate.

 Eligibility

 FDR Account can be opened both for Individual and Corporate bodies.

 Only Resident Bangladeshi National is allowed to open Personal FDR Account.

 Age bar for opening of Personal FDR Account: 18 years or above.

 Joint account can be opened.

 Minor account can be opened under the supervision of his / her / their guardian.

 FDR can be issued for senior citizen with attractive rate.

Fees & Charges

  Loans & Advances

Working Capital Finance:

This is a loan facility designed to meet day to day operation of business concerns and manufacturing companies.

  Features and Benefits

  Easy Documentation.

 Fast Processing.

 Any branch banking facilities.

 Individual & Global limit facility for the customer.

 Eligibility

 A viable business case for financing.

 Feasibility report

Loan Application

 Sets of documents based on financing requirements.

 Fees and charges

 13% p.a. at quarterly rests subject to change(s) that may be made by the Bank from time to time

Standard processing fee.

 Overdraft:

This is a demand credit facility to meet day to day operational requirements.

Features and Benefits

  OD against hypothecation of stock of goods in trade / raw materials

 OD limit against assignment of bills receivables / work orders

OD against cash collateral

OD under earnest money scheme

 Tenure of OD is one year

 Easy Documentation.

 Lower Cost & Fast Processing

Easy to use and easy to pay facility

 Freedom to use limit through Cheque Book, ATM, Online Transfer etc.

  Any branch banking facilities.

 Global limit exposure for the client

Interest payable on the account utilized.

Requirements

  A viable business case for OD facility

 Collateral securities

 Fees & Charges

 13% p.a. at monthly / quarterly rests subject to change(s) that may be made by the Bank from time to time.

Standard processing fee.

 Project Finance:

This is a term loan facility provided by the Bank for acquisition of fixed assets and machinery for any Project.

Features and Benefits

 Term finance.

Financing for turnkey projects.

Requirements

 A viable business case.

Project feasibility report.

 Loan Application.

 Sets of documents based on type of project and nature of financing.

 Syndicated Loan:

Large projects are financed through raising funds through participation of more than one bank by joint financing against a set of common terms and conditions laid down in a loan agreement.

Features and Benefits

Borrowers can access from a diverse group of financial institutions for funding.

 Funds can be raised at competitive price.

 Flexibility in structuring & pricing.

Save the time and efforts of approaching / negotiating with individual banks for sanction.

 We work as lead Bank / Arranger / Participant / Syndicate Agent.

 Requirements

 A viable business case

 Project feasibility report

 Loan Application

Sets of documents based on type of project and nature of financing requirements.

 Packing Credit:

We provide pre – shipment finance in the form of Export Packing Credit (PC) to assist cash flows for manufacturing or packing goods for export from Bangladesh.

 Features and Benefits

 Easy Documentation.

 Fast Processing.

 It is a revolving limit for one year but renewable.

 Allow the Exporter to purchase of raw materials, cost of processing the same to finished goods, packing and dispatching of goods.

 PC disbursement made case to case basis with an expiry date up to 90 – 180 days.

 Global Loan Limit exposure for the client.

 Case to case PC limit determines against each export LC on the basis of export LC / Accepted BTB bills.

Increase the present cash flow of the exporter to improve the financial condition and strengthen the financial ability.

Online Banking facilities for repayment

 Requirements

Application received from the customer for disbursement of PC.

 Viability report along with business proposal.

Photograph of signatory to be attested by Chairman of the company.

Copy of valid trade license

Official seal with designation

Tax Certificate

KYC Form

 Transaction Profile

Fees and charges

 Application Form for request for loan facility – Taka 250/-.

 2% on approved loan amount.

 We are realizing only interest (i.e. 7% p.a. at quarterly rest or as fixed by Head Office from time to time) from PC account.

 Half yearly Service Charge:

 Taka 1,000/- on each account for urban clients

 Taka 500/- on each account for rural clients

 Loan against Export Bill:

This is a demand loan facility for the exporters in the form of negotiation or acceptance of export bills by the Bank.

 Features and Benefits

 Easy Documentation.

 Fast Processing.

Local or Foreign Bill negotiation or acceptance.

 Increase the present cash flow of the exporter to improve the financial condition and strengthen the financial ability.

 Simplify the financial procedure.

 Global loan limit exposure for the client.

 Any branch banking facilities for repayment.

 Requirements

 Export LC / Contract submission by the Exporter at the time of negotiation / collection of documents.

 Photograph of signatory to be attested by Chairman of the company.

  Copy of valid trade license.

  Official seal with designation.

 Tax Certificate.

 KYC Form.

Transaction Profile.

Fees and charges

 Application Form for request for loan facility – Taka 250/-.

 2% on approved loan amount.

 7% or 13% p.a. at quarterly rest or as fixed by Head Office from time to time.

 Document negotiation charge @ minimum TK. 1000 per documents.

 Postage charges at actual.

Loan Against Trust Receipt:

We provide post shipment finance i.e. LTR to manage immediate liquidity of importers.

Features and Benefits

 Easy Documentation.

Fast Processing.

Allow an importer to take possession of the goods for resale.

 Increase the present cash flow of the exporter to improve the financial condition and strengthen the financial ability.

Global loan limit exposure for the client.

Online banking facilities for repayment.

Requirements

 Application received from the customer for LTR facility.

 Photograph of signatory to be attested by Chairman of the company.

Copy of valid trade license

 Official seal with designation

 Tax Certificate

 KYC Form

Transaction Profile

 Fees and charges

 Application Form for request for loan facility – Taka 250/-.

 2% on approved loan amount.

 13% p.a. at quarterly rests subject to change(s) that may be made by the Bank from time to time.

 Half yearly Service Charge:

 Taka 1,000/- on each account for urban clients

 Taka 500/- on each account for rural clients

CHAPTER 4

Some general observations of the performance of last five years (2005-2009) of the bank are as follows:

Growth in Different Businesses of SEBL:

The SOUTHEAST Bank has performed well in last five years where there has been significant growth in different segments of the Bank. The overall performance of the Bank is discussed along with graphical presentation in the data analysis part of this report. Here growth for some of the different business of SEBL is shown.

Total assets of the bank (excluding contingent liabilities) have increased from TK.43294 million in 2005 to TK 112677 million in 2009.

Asset Growths

Asset Growth

 Over the last five years the deposit of the bank is increasing at a large rate. In the last five years data we can see that the bank has collected deposits in different savings criteria.

Deposits Growth                                                                                                                                 (Figure in Million Taka)

Growth in loans and advances

Loans and advances have increased from Tk. 32551 million in 2005 than that of 77497million in 2009. Import, export trade finance and working capital for industrial units were the major lending areas of the bank.

Loans and Advances

 Growth in net profit

SEBL increased operating efficiency and increased revenue both are the reason behind the growth in net profit.

Net Profits

 return on Assets (roa)

Return on assets (ROA) is measured by the ratio of net income and total assets. By the returning assets, if the bank’s net income increases the profitable ratios of the bank increases. Also by measuring the ROA, it can be determined that what percentage of the total asset is the net income i.e. how much return are they getting over the assets. SEBL is giving continued emphasis on quality assets, which resulted in providing a sound asset base for the bank.

Return on Asset

 return on equity (roe)

Return on Equity (ROE) represents earning after tax over equity. The ROE (net income divided by equity capital) is the most important measurement of banking returns as well as a company’s returns because it is influenced by how well the bank has performed on all other categories and indicates whether a bank can compete for private sources of capital in the economy. The higher the ROE, the better for the bank, as they are getting higher amount of net income over the equity.

Return on Equity                                                                                            

 Export

The export the SEBL is increased to 46,724 million in 2009 from Tk 13,511 million in 2005. The following graph shows the growth the export:

Export                                                                                                                                                             

 import

 The import of the SEBL is increased to Tk. 69583 million in 2009 from Tk 29079 million in 2005. The following graph shows the growth the import:

    IMPORT

 IMPORT

CHAPTER-5

about financial statement analysis

 Financial statement Analysis involves a comparison of a firm’s performance with that of other firms in the same line of business, which usually is identified by the firm’s industry Classification

          Generally speaking the analysis is used to determine the firm’s financial position so as to identify its current strengths and weakness and to suggest action the firm might pursue to take advantage of the strength and correct any weakness.

          Various measuring instruments may be used to evaluate the financial health of a business, including Horizontal, Vertical and Ratio Analysis. A Financial analyst uses the ratio to make two types of comparisons.

1. Industry comparison: The ratios of a firm are compared with those of similar firms or with industry averages or norms to determine how the company is faring relative to its competitors. Industry average ratio are available from a number of source including.

a)     . Dun & Bradstreet: Dun & Bradstreet computes 14 ratios for each 125 lines of business. They are published annually in Dun’s Review and key business ratios.

b)    Robert Morris Associates: This association pf bank loan officer publishes Annual Statement Studies. Sixteen ratios area computed for more than 300 lines of business , as well as  a percentage distribution of items on the balance sheet and income statement ( common size financial statement)

1. Trend Analysis: A firm’s present ratio is compared with its past and expected future ratio to determine whether the company’s financial condition is improving or deteriorating over time.

          After completing the financial statement analysis, the firm’s financial analyst will consult with management to discuss their plans and prospect, any problem.

Financial statement Analysis is not only important for the firm’s managers but also for the film’s investors and creditors.

          Internally financial manager use the information provide by financial analysis to help financing and investment decisions to maximizes the firms value

          Externally, stockholder and Creditors use financial statement analysis to evaluate the attractiveness of the firm as an investment by examining its ability to meet its current and expected future financial obligation.

 Ratio Analysis.

  Trend Analysis.

  Index Analysis.

 ratio analysis of sebl

Ratio analysis: Ratio analysis is a diagnostic tool that helps to identify problem areas and opportunities within a company. The most frequently used ratios by financial analysts provide insights into a firm’s

– Liquidity

– Degree of financial leverage or debt

– Profitability

 -Efficiency

 -Value

Importance of Financial Ratio

 Ratio analysis is very important for every business, because by calculating ratio analysis we can understand the business position, business strength and weakness. By knowing this information, management can takes its necessary steps to organize their goal. Now we will analysis Basic Bank Limited ratio according to ‘Du Point Analysis’.

Bank Profitability Ratio:

Profitability refers to the ability of a firm to generate revenues in excess of expenses. When making compression across firms it is useful to control for different in their resource base. There are some basic formulas for profitability ratio:

Return on Assets (ROA):

Return on Assets (ROA) =

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Return on Assets (ROA) Ratio of Southeast Bank Limited & we see that in the year 2007 Southeast Bank was in highest   profitable position. In 2005 the Bank was in lowest profitable position.

Return on Equity (ROE):

Return on Equity (ROE) =

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Return on Equity (ROE) Ratio of Southeast Bank Limited & we see that in the year 2007 Southeast Bank was in most profitable position. In 2008 the Bank was in lowest profitable position.

 Return on Deposits (ROD):

Return on Deposits (ROD) =

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Return on Deposit (ROD) Ratio of Southeast Bank Limited & we see that in the year 200 Southeast Bank was in most profitable position. In 2005 the Bank was in lowest profitable position.

Return on Shareholder capital:

Return on Shareholder capital=

Calculation:

Graphical Presentation:

Decision: The above figure represents the Return on Shareholder Capital (ROSC) Ratio of Southeast Bank Limited & we see that in the year 2007 Southeast Bank was in most profitable position. In 2008 the Bank was in lowest profitable position.

BANK Efficiency Ratio:

Efficiency: Efficiency is the measure to define the competence of the bank in investment management and utilization of assets. Banks operating performance can be reviewed in terms of financial performance and operating efficiency.

Operating expenses to revenue (OER):

Operating expenses to revenue (OER) =   

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Operating expenses to revenue (OER) Ratio of SOUTHEAST Bank Limited & we see that in the year 2007 & 2009 Basic Bank was in most Efficiency position. In 2008 the Bank was in lowest efficiency position. So this is the good sign of the bank.

Assets-Quality indicators:

Loans to Deposits (LTD):

Loans to Deposits (LTD) =

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Loans to Deposits (LTD) Ratio of Southeast Bank Limited & we see that in the year 2009 Southeast Bank was in lowest deposit position. In 2007, the Bank was in most deposit position.

Loan Ratio (LR):

Loan Ratio (LR) =

Calculation:

 Graphical Presentation:

Decision: The above figure represents the Loan Ratio (LR) Ratio of Southeast Bank Limited & we see that in the year 2006 Southeast Bank was in most loan position. In 2009 the Bank was decrease loan position.

Liquidity Ratios:

Liquidity: The ability to instantly pay off the current liabilities of the bank. That’s means the cash management of the organization policy and efficiency to sanctioning investment compared to deposits during the specific year of period.

Equity Multiplier (EM):

Calculation:

Decision: The above figure represents the Equity Multiplier (EM) Ratio of Southeast Bank Limited & we see that in the year 2005 Southeast Bank was in most equity multiplier position. In 2006 the Bank was fall down but 2007 is the lowest position and 2008 & 2009 bank was also increase his equity multiplier position & smoothly incresing .

Calculation:

 Decision: The above figure represents the Equity to Deposits (ETD) Ratio of Southeast Bank Limited & we see that in the year 2008 & 2007 Southeast Bank was in most equity to deposit position. In 2009 the Bank was slightly fall down his equity to deposit position.

 Calculation:

Decision: The above figure represents the Total liabilities to shareholder capital (TLSC) Ratio of Southeast Bank Limited & we see that in the year 2005 Southeast Bank was total liabilities to shareholder position is higher. But in 2006, 2007, 2008, the Bank was fall down, again 2009 the bank was his total liabilities to shareholder capital position is going to increase So this is the good sign of the bank.

Finding of Financial Ratio Analysis:

Financial ratio analysis of southeast bank represents the overall performance of their activities in his part. I have tried focusing the ratio of bank profitability, bank efficiency,  in favor of liabilities and assets over the year. southeast bank how much efficient in their activities to gain profit against total assets and liabilities, return on deposit and equity, operating and net profit margin, quality to efficiently use assets, cash management, operating income, assets turnover etc. calculated in this part. That focuses the management efficiency of southeast bank and profitability and productivity. Ratio analysis helps to know the performance and capability of this organization, is it profitable of loss for investors and shareholders.

Return on assets and return on equity are two ratios that measure the overall efficiency of the firm in managing its total investment in assets and in generating return to shareholders. Return on investment or return on assets indicates the amount of profit earned relative to the level of investment in total assets. Return on equity measure the return to common shareholders. The ratio is also calculated as return on common equity if firm have preferred stock outstanding. That’s why return on assets ratio is 1.66% that’ is normal in banking sector but slightly increase then previous year 1.09%  so southeast bank have to increase this ratio. On the other hand return on equity ratio is 18.44% that is acceptable and good but have to remember that it can be more by increase efficiency.

The operating profit margin measures the percentage of each sales or deposit and purchase remaining after all cost and expenses other than interest and taxes are deducted. Net operating margin is better position in 2009.and  also good position then last 4 years.

 In risk ratio, deposits to assets ratio and Equity to deposits ratio is better than last year so it is good sign of southeast Bank.

CHAPTER-6

While working at Southeast Bank. Shyamoli Branch and head office, I have attained to newer kind of experience. After the collection and analysis of data I have got some findings. These findings are completely from my personal point of view. Those are given below.

• Based on my experience, ii can be said that Southeast Bank should reconsider its and services. That better satisfy customer needs and requirements Bank should be more tactful in dealing with the customers and launch new products that fully meet customer expectations.
• Southeast Bank Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth m the profits and deposits sector.

• The bank successfully stepped in to the Fifteen  year of operations having enjoyed the complete confidence of the depositors and achieving significant growth in the entire areas of banking operations.

• The bank follow the online banking system to provide the customer better services; but all the brandies of South East bank are not follow the online banking system.

• The Bank has a deposit base of Tk.96, 669.05 million 2009, which posted a growth of 40.68% then last year.

• The consistent and increasing growth trend of the above mentioned performance indicators has increased depositors’ confidence as well as good will/reputation of the bank to a great extent and these have contributed to increase the shareholders value.

• The bank focused on building high-quality human resources with expertise and professional skills adopting the Human Resources Re-engineering and Development Plan with a view to creating an excellent clientele service environment for ultimate achievement of sustained profit growth making no comprises with the quality asset creation.

• The Bank’s Human resources Development strategy is to build up quality manpower with conceptual/managerial Knowledge, skills through designing/arranging of continuous in-house and outside training programs.

• The bank focuses on customer-friendly marketing approaches by offering various efficient delivery of personalized banking services at the clients door steps and caters to the ever-growing financing needs of clientele at a competitive price.

• The company philosophy to workout best solutions for customers and clients as a business and customer friendly Bank

• South East bank has an interactive corporate culture the working environment is very friendly, interactive and informal. And there are no hidden barriers or boundaries while communication between die superior and the subordinate. This corporate culture provides as a great motivation factor to the employees.

Southeast Bank is one of the moat flourishing Banks of Bangladesh with wide growth opportunities m the industry This report gave valuable insights as to where improvements were necessary to improve the quality of service. Southeast Bank with its strong corporate image and organization strength can successfully utilize the presented based on the findings.

In today’s world of business without bank’s co-operation, it is almost impossible to run any business or production unit of business. Exports and import need finance in various stages of their activities. Southeast Bank Limited is playing a vital role in financing import and exports of the country and helping the businesses by providing funds to run.

There are lots of local and foreign banks competing in banking industry in Bangladesh and the Southeast Bank Limited is keeping its promises for about fifteen years among them very successfully. In this competitive market Southeast Bank has to compete not only the others commercial banks but also the public banks and other financial institution also. In near future I think bank and mobile companies will come together to foster the banking service and make it available to people’s hand.  To survive in this dynamic market and lead it from the front the bank must take every initiative very wisely and so far they have successfully utilized their human resource efficiently compare to other private and public banks.

Before internship I had idea about banking but that was only bookish. Now after completing my internship period and preparing term paper on it I got practical aspect of banking. It will definitely help me to see the things from banking perspective also.

  Annual Report of Southeast Bank Ltd.(2005-2009)

   http://www.sebankbd.com

  www.reportbd.com

  www.en.wikipedia.org/wiki.com

  Different Brochures, Forms published by Southeast Bank Ltd.

  Essentials of Managerial Finance BY Scott Besley & Eugene F. Brigham.