Introduction
Banking is nothing but collecting money from the surplus units and deploying it to the deficit units. In this regard Narayanganj Branch plays an incredibly crucial role, because we know that in this area most of the dwellers came from elite class and country’s major portion of the money is owned by them. In my orientation period, I have observed that IFIC Bank’s major portion of the deposits comes from Narayanganj Branch.
History of Narayanganj Branch IFIC Bank limited
Narayanganj Branch was opened on 25 November 1983, 66/1 B.B Road, Narayanganj. It’s with an initial deposit of TK 211.08 Lac. 13 officials including 3 authorized officers are posted in the “A” grade branch. Staff strength of the branch is adequate as to the volume of their present business. In comparison with other bank’s branches in this area at Narayanganj mobilization of deposit, procurement of business, assets management of our Narayanganj branch are increasing gradually. In the year 2009, all targets were achieved by the branch except its Advance target. However, all targets as on 30th June, 2009 were achieved by the branch. From the business position as on 13.04.08 (east date of inception), 30.08.09 (date of inception) revealed that credit portfolio of the branch has increasing trend. Total loan & advances of the branch is TK 650.06 Lac as on September 7, 2009 which is 67% of its total deposit indicating very high credit portfolio. The branch earns profit from loan & advances, interest on general account other commission business like commission on L/C, LG, TT, DD, PO etc. Most positive side of this branch is the work environment is very friendly and customers find a comfortable place for their transactions.
Functions of various departments in IFIC Bank
, Narayanganj Branch As given in the organ gram, Narayanganj Branch consists of 13 employees who directly or indirectly serve their customers in various ways. The major functions of the bank have been given before. Now they will be discussed thoroughly by highlighting all the functions of IFIC Bank, Narayanganj branch.
GENERAL BANKING
General banking is the heart of banking activities. Total banking procedure start with this department. General banking department perform the core function of bank operation and it is known as “Retail Banking”. They take the deposits from the customer and meet their demand for cash honoring their checks. It opens new accounts, remit funds, issues bank draft and pay order. Account opening section, Remittance, Checks clearing, Cash, FDR, Accounts section are part of general banking.
Organ gram
General Banking is designed to serve the general people is saving money, smoothing transactions for commercial people and ensure security of the precious wealth of the clients lot of important activities. IFIC Bank has all the required sections of general banking activities come under General Banking section of IFIC Bank are as follows: General Banking Account Opening Section Cash Section Bills and Clearing Section Remittance Section Time Deposit A/C Section Receiving Cash Disbursing Cash Payment Order Demand Draft Telegraphic Transfer
Account Opening Section
This section opens accounts .Selections of customer is very important for the bank because banks success and failure largely depend on their customers. If customer is bad, they may create fraud and forgery by their customers. If customers are bad, they may create fraud and forgery by their account with bank and thus destroy goodwill of banks. So; this section takes extreme caution in selecting its customer base. Accounts opening process
Step 1 Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened.
Step 2 1. The form is filled up by the applicant himself/herself 2. Two copies of passport size photographs from individuals are taken; in case of firms photographs of all partners are taken.
3. Applicants must submit required documents.
4. Applicants must sign specimen signature sheet and give mandate. 5. Introducer’s signature and accounts number-verified by legal officer. Step 3 Authorized officer accepts the application
Step 4 Minimum balance is deposited – only cash is accepted
Step 5 Account is opened and a cheque book and pay-in-ship book is given. Documents needed from the Account opener of the following types .
Partnership Firm 1.
Partnership deed must be taken 2. Mandate from the partners is essential-indicating who will operate the account. Public limited company
1. Certificate of incorporation
2. Copy of Memorandum and articles of association
3. Certificate of commitment
4. Copy of Resolution of the Board of Directors.
Private limited company Certificate of Commencement is not necessary
1. Certificate of incorporation
2. Copy of Memorandum and articles of association
3. Copy of Resolution of the Board of Directors. Types of Account maintained by this branch- comparative discussion Types of Deposits Types of Accounts Characteristics Demand Deposits Current Account(CD) .Generally opened by businessmen .No interest is provided for deposited amount. .Minimum opening balance is TK.5000. If it falls below TK.1000 an incidental charge of TK 50 is charged. Savings Accounts(SB) .Any one expect limited company can open. .6% interest is provided to depositors. .Minimum balance is Tk1000. .twice withdrawal in a week is allowed, for more withdrawal depositors is not entitled any interest. Times Deposits Fixed Deposit Receipts(FDR) .Can be opened by all .12.5% interest is provide the deposit 1 year. .In case of withdrawal before maturity the pervious maturity period is considered to pay interest-it is known as Break Down Payment. Short Term Deposit(STD) .Generally opened by big business firm. .Interest depends on the amount deposited. Accounts are opened by the bank, when I was worked in this section SL Types of A/C Address Profession Relationship with nominee Age of nominee(year) 1 Savings Don Chember Service wife 32 2 Savings Noyamati Housewife Husband 38 3 Current Noyamati Businessman son 26 4 Savings New Chashara Service son 13 5 Savings Fatullah Businessman Daughter 15 6 Savings B.B Road Businessman wife 27 7 Savings Palpara Housewife son 10 8 Savings Chanmari Student Father 45 9 Current Bandor Service wife 29 10 Savings Deubough Student Brother 26 11 Savings Shinebord Service wife 23 12 Current(Ltd.co) Lamapara Businessman Daughter 17 13 Savings Hazigonj Student Sister 29 14 Savings Kutubpur Businessman Wife 26 15 Savings katherpul House wife Son 15 16 Savings Ramarbugh Service holder Daughter 16 17 Savings Mohammadpur Banker Wife 21 18 Current Goalpara Businessman Wife 23 19 Savings Tanbazar Service holder Son 25 Comments: The number of savings Account is more than Current Account. Target Customer of IFIC Bank Narayanganj Branch: Individual person Public limited company Sole proprietorship firm Government Organization Partnership firm Semi Government Organization Private limited company Bank employee Types of Accounts Deposit is life-blood of a commercial bank. Since commercial bank deals with other people’s money, without deposit there is no business for the commercial bank. Accepting deposit is one of the main functions of commercial bank. IFIC bank’s deposits can be broadly classified as follows: Current Account Current Account is most suitable for private, individuals, traders, merchants, importers and exporters, mill and factory owner etc. For opening of a current Minimum deposit of TK. 2000.00 is required along with introductory reference. No interest is given the current account deposited money. One can enjoy maximum flexibility and convenience when s/he opens a current account with IFIC bank limited. This account offers: Any number of transactions a day Free check book Statement of account at any desired frequency Statement by fax on demand Savings Account The saving account is primarily for small-scale savers. The main objective of this account promotion is thrift. Hence, there is restriction on withdrawals are permitted only against prior, Minimum amount of TK. 1000.00 is required as initial deposit. Frequent withdrawal is not encouraged. 7 days is required for withdrawal of large amount The rate of interest is 5.50 % against SB account. Short-Term Deposit (STD) Account In short term deposit account, the deposit should be kept for at least six month to get the interest. The STD account is a very important class of account in this bank. The minimum amount of balance has to be maintained with STD account is TK. 30000 Interest is given at a rate of 4% percent which is less than savings account. Normally various big companies, organizations, government departments keep money in STD account. For this type of account, frequent withdrawal is discouraged. Deposit should be kept for at least seven days to get interest. Prior notice is required for the withdrawal of money from STD account. The account holder must give seven days before the withdrawal that is why STD is also called ‘Seven days notice’ current account.
Interest rate SL NO DETAILS EXIXSTING RATES REVISED RATES WITH EFFECTIVE FROM
27/05/09 1 Less than TK 1.00 crore 4.00% 4.00% 2 TK 1.00 crore and avobe but less than TK 5.00 crore 4.25% 4.25% 3 TK 5.00 crore and above 5.00% 4.75% 4 Bank to Bnk 0.50% 0.50% 5 Initial Public offering(IPO) 5.00% 4.75% Fixed Deposit Receipt (FDR) This branch maintains a separate section for fixed deposit. FDR is an important factor for the bank and volume of FDR determines the investment base of the bank. FDR is found to be 60% of the total deposit of this branch. Basically this is the mobilization unit of the bank. It is obvious to give due importance. Types of FDR maintained by this branch along with their respective interest rate Fixed Deposit Rate of interests effect from 27/05/09 1months 7.00% 3months 9.00% 6months 9.25% One year 9.50% Liquidation of FDR 1. Only the amount holder himself and the authorized person can liquid the FDR after maturity. 2. In case of joint name, authentication from both is necessary. 3. In case of ‘Either of Survivorship’ clause – any one can liquid. 4. In case of Death, the survivor cannot encase the FDR even if there exist the either or survivor clause-succession certificate from the court is needed. 5. If demanded before the maturity the last expired duration is considered to pay interest. FDR section provides another service on behalf of the government. These services this bank issues and encash the following govt securities.
3month Bangladesh sanchay patra This section of this branch is also fully computerized. No ledger, no other subsidiary books are maintained separately in this section. All entry is given directly in the computer and then necessary information is printed when required. Transfer of an account to another Branch Sometimes the customer wants to transfer his account to another branch due to various reasons. IFIC Bank, Narayanganj Branch, also gives this kind of facility to the customer. In this case, they will have to submit an application to the branch manager stating the reasons. The officer verifies the signature and finds out the balance of the account holder. The holder also submits the rest check leaves along with the application. Then the officer issues an Inter Branch Credit Advice (IBCA) to that branch and a debit voucher with the balance of deposit in that account. He also sends the account opening form and specimen signature card to that new branch. The new branch officer verifies the customer signature with account opening form supplied to him. The amount mentioned in the (IBCA) considered as the initial deposit of the new branch. Closing Procedure of an account For two reasons account can be closed – By Banker: banker has the right to close the account if the customer does not maintain any transaction six years and the balance is become lower than the minimum balance. By Customer: if the customer wants to close his account he will write an application to the manager and the manager then close the account. Firstly, the concerned customer has to apply for closing his/her account. Then to close the account the cheque book is to be returned to the bank. After charging the account closing charge the Manager will close the account. Closing charges are as follows: For below 6 months 100 tk. For over 6 months 200 tk. The rest amount of money laid in the respective account is paid to the customer by a payment order. In case of payment order certain commissions and vat are cut off from the account.
Cash Section
Cash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash balance are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance. This closing balance is then added to the vault. And this is the final cash balance figure for the bank at the end of any particular day. Functions of Cash Department Cash Payment
1. Cash payment is made only against check
2. This is the unique function of the banking system which is known as payment on demand
3. It makes payment only against its printed valid check
Cash receipt
1. It receives deposits from the depositors in form of cash
2. So it is the mobilization unit of the banking system
3. It collects money only its receipts form s Cash payment or check cancellation process
Step 1 Receiving Check by the employee in the cash counter
Step 2 Verification of the followings by the cash Officer in the computer section
1. Date of the check (it is presented within 6 month from issue date)
2. Issued from this branch
3. Amounts in figure and sentence written does not differ
4. Signature of the drawer does not differ
5. Check is not torn or mutilated
Step 3 Gives pay cash seal and sends to the payment counter
Step 4 Payment officer makes payment Books Maintained by this Section Vault Register Cash balance at the end of a day is recorded in this book which is kept in the vault. Cash Receipt Register Cash receipt in whole of the day is recorded here Cash Payment Register Cash payments are made in a day are entered here Rough Vault Register Cash calculation for final entry in vault register is done here, as error and correction here is not acceptable in vault book or balance book. Cash Balance Book Balance here is compared with vault register. If no difference is found, indicates no error.
Cheque Clearing and Remittance Department
This department receives cheque from its depositors for the purpose of collection by a deposit slip over the counter crediting their account. Clearing of cheque is done through the clearinghouse in Bangladesh bank. Everyday the first house starts at 9 a.m. and returns house at 5 p.m. The main objective of clearing and remittance department is to provide an extra facility to the customer other than cash receipt and payment. We can divide this department into two parts. One is Clearing & Transfer Delivery section, and the other one is Local Remittance section.
In IFIC Bank, Narayanganj Branch, there are three employees, working in this department. I am trying to present my findings in the following parts regarding these two sections. Clearing According to the Article 37(2) of Bangladesh Bank Order 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque 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 cheque. Banks for credit of the proceeds to the customer’s accounts accept cheque 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. If they were to be presented at he drawer banks to collect the proceeds it would be necessary to employ many messengers for the purpose, Similarly there would be many cheque drawn on this the messengers of other banks would present bank and then at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor, risk, delay and expenditure are substantially reduced by the representative of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse. The clearinghouse sits for two times a working day. The members submit the climbable cheque, in the respective desks of the banks and Vice versa. Consequently the debit credit entries are given. At the debit summation and the credit Summation are calculated. Then the banks clear the balance through the cheque of Bangladesh Bank. The dishonored cheque are sorted and returned with return memo named ‘Memorandum’.
Step 1 The returns of the outward clearing/ transfer delivery are received by the branch in the same manner as the inward clearing/ transfer delivery (Return of Instruments).
Step 2 Depositor’s account is debited with the amount of the instrument.
Step 3 The instrument together with the Check Returning Memo in Bank’s form is sent to the depositor with covering memo immediately.
Step 4 The instrument together with the Check Returning Memo is sent to the department concerned if lodged by them.
Step 5 It the instrument is to be re-lodged, a credit voucher is prepared and attached with it and the instrument is presented again. Step 6 The instruments returned unpaid by the various departments are received in the Clearing Department attached with Memo in standard form and entered in the Register (Inward Clearing Transfer Delivery).
Step 7 The returns of inward clearing/ transfer delivery are sent by the branch in the same manner as the outward clearing/ transfer delivery.
Step 8 The credit voucher is not posted unless the relative instrument is paid (Internal Transfer).
Step 9 If the instrument is returned, the entry is cancelled and initialed in the Transfer Book.
Step 10 The instrument together with the Check Returned Memo is sent to the depositor covering memo through Dispatch Department.
Step 11 If the amount of the advice received is less than the amount of the instrument received or the amount of the advice sent is more than the amount of the instrument delivered, the excess amount is sent to the Bank concerned by a Pay Order and the following entries are passed (Difference in Clearing): Debit: Sundry Deposit A/C- Difference in clearing Credit: Bills Payable A/C- Pay Order issued
Step 12 If the amount of the advice received is more than the amount of the instruments received or the amount of the advice sent is less than the amount of the instruments delivered, the following entry is passed and the entry is reversed when the Pay Order is received. Debit: Sundry Asset A/C- Clearing Adjustment
Step 13 When an instrument is presented in special clearing on request of the customer, the instrument is stamped and suitably endorsed (Special Clearing).
Step 14 Such instruments should invariably be drawn on Bank with whom the main branch maintains account (Bangladesh Bank & Sonali Bank).
Step15 Branch sends the instrument duly entered in Outward Clearing Register and Sub-main Schedule to the branch representing the Clearing 1 louse (When representing branch maintains A/C).
Step 16 Branch representing the Clearing Mouse sends the instruments to the drawee Bank duly entered in Pay-in-Slip of the Bank for credit of the proceeds in the account maintained with them.
Step 17 On receipt of the information of credit of the proceeds from the drawee Bank, the branch representing Clearing House then sends an Inter Branch Credit Advice (IBCA) to the branch concerned.
Step 18 Where instruments drawn on Banks other than those, with whom the branch, representing Clearing House does not maintain account, Pay Order/ Bangladesh Bank Check issued by the drawee Bank in payment of the instrument are lodged in clearing. Bank’s Locker service is also delivered from this department. In IFIC Bank, Narayanganj Branch, this department is maintained by two officers. Inward Clearing
Step 1 The instruments drawn on IFIC Bank are received from other Banks in the Clearing House by the representing branch of the Bank.
Step 2 The amount and number of instruments received are entered in the House Book from the main schedules of respective banks. Step 3 The amount of instruments delivered, received and difference is written in a slip provided in the Clearing House and the Slip is returned.
Step 4 The instruments with schedule are arranged branch wise.
Step 5 A copy of each schedule is detached.
Step 6 The amount of each schedule received is entered in the House pages of the respective branches.
Step 7 The respective House pages are totaled and the total of each is noted on a Slip and a grand total is taken out. Step 8 The grand total is agreed with the total of the House Book.
Step 9 The instruments are sent to the respective branches with Slip showing total amount and number of instruments.
Step 10 The instruments are sent to the branches concerned for clearance along with the IBDA with the total amount of the instruments.
Step 11 The House pages along with the duplicate schedules are filed.
Step 12 Particulars of the instruments are compared with the schedule and the Slip and the schedules are detached (Receipt of instruments in the Branches).
Step 13 The instruments are sent to the respective departments and the schedules are filed.
Outward Clearing
Step 1 The instruments drawn on other banks are received duly entered in the Pay-in-Slip or voucher.
Step 2 The instruments are checked and compared with the particulars noted in the Pay-in-Slip and its counter folio.
Step 3 In case an Order instrument is being deposited in second payee’s account, guarantee is obtained from the second payee on the reverse of the instruments.
Step 4 In case the payee’s name on the specially crossed instrument differs slightly from that of the depositor, the instrument may be accepted but only from the customer’s well known to the Bank and after obtaining an Indemnity this is attached to the Pay-in-Slip.
Step 5 Proper stamp(s) is/ are affixed on the instruments and on Pay-in-Slip and the counter folio.
Step 6 The instrument is suitably endorsed/ discharged.
Step 7 The instrument along with the Pay-in-Slip is sent to the In-charge for checking and signature.
Step 8 The instrument and Pay-in-Slip are detached from the counter folio which is handed over to the customer.
Step 9 The particulars of the instrument and the voucher are entered in the Outgoing Clearing Register.
Step 10 Serial number Is given on each voucher.
Step 11 The Register is balanced; the vouchers are separated from the instruments and released after lodgment to the respective departments against acknowledgement in the Register.
Step 12 The instruments are arranged bank-branch-wise.
Step 13 The Sub-Main-Schedules are prepared in triplicate, two copies of which are attached with the relative instruments.
Step 14 The grand total of the schedules is taken and agreed with that of the Register.
Step15 The House Page is prepared in duplicate.
Step 16 The IFIC General A/C Clearing House representing branch is debited with the amount of the instruments and IBDA is sent to that branch and the party’s account is credited.
Step 17 The instruments with the schedules are sent to the branch representing to the Clearing House.
Step 18 The instrument is received in the manner similar to that explained in foregoing paras (Receipt of instruments by the Branch representing to the Clearing House).
Step 19 The instruments with schedules are received from the branches (Lodgment by the branch representing to Clearing House). Transfer Delivery For payment of Bills presented to a particular branch of the Bank through another branch of the Bank, the procedures are the same as those applicable to Inward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing. Outward Transfer Delivery For collecting of Bills by a particular branch of the Bank, drawn on another branch of the Bank the procedures are the same as those applicable to Outward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing.
REMITTENCE
Remittance can be done by telegraph transfer, mail transfer, traveler’s cheque and drafts and cheque. There are two steps of remittance: Local Remittance Sending money from one place to another place for the customer is another important service of banks. And this service is an important part of country’s payment system. For this service, people, especially businessmen can transfer funds from one place to another place very quickly. There are five kinds of techniques for remitting money from one place to another place. These are:
1) Money Transfer
2) Pay Order
3) Demand Draft
4) Telephone Transfer
5) Mail Transfer – Time consuming and not frequently used Money Transfer IFIC Bank Ltd. earns a huge amount of money by selling several customer services. The IFIC Bank Ltd. offers the following services to its customer: Demand Draft (DD) DD is the most popular instrument of remitting fund. It is an order to pay money drawn by one branch of a bank upon another branch of the same bank for a particular sum of money which is payable to order and demand. Issuing of a Demand Draft (DD): The steps of issuing a DD to be followed:
The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department.
The officer fills up the commission & VAT (15% on commission) part meant for the bank’s use & requests the applicant to deposit the amount by cash I cheque to the cash. By that time the authorized officer get the ‘Test Number.’
The cash department completes their formalities & then return back the form to the remittance department. After receiving the form the remittance department prepares the DD facing all the information along with the amount in two parts & also give entry in the DD issue register.
After signed the two part of DD by two authorized officer of the bank the main part is given to the client & after signed at the back of the counter part of the DD.
When the DD is given to the client, remittance department prepares the necessary advice. Payment Order (PO) A payment order is an instrument from one branch to another of the same bank to pay specified sum of money to the person named therein of his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing bank takes our money of the pay order in advance. Amount of DD Commission (TK) TK 0 to TK. 1000 10 TK. 1000 to TK. 100000 25 TK 100000 to TK 500000 50 Above TK. 500000 100 Issuing of a Pay Order: The steps of issuing a Pay Order to be followed by the client & the bank The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department. The officer fills up the commission & VAT (15% on commission) part meant for the bank’s use & requests the applicant to deposit the amount by cash I cheque to the cash.
The cash department completes their formalities & then returns back the form to the remittance department.
After receiving the form the remittance department prepares the Pay Order facing all the information along with the amount in three parts duly crossed “A/c payee” in the main part & also give entry in the Pay Order issue resister.
After signed the three parts of Pay Order by two authorized officer of the –bank two Ws are given to the client & after signed at the back of the counter part of the Pay Order. Telegraphic Transfer (TT) TT is the fastest means of money transfer between two branches of the same bank. The formalities of TT is as same as MT, there are taken some extra charge for telephone. Telegraphic and Telephone transfer are almost the same, both are them are known as TT in short. IFIC bank helps people transfer their money from one district to another in the quickest possible time at the lowest service charge. Issuing of a TT: The steps of issuing a TT to be followed by the client & the bank i) The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department. ii) The officer fills up the commission & VAT (15% of commission) part meant for the bank use & requests the applicant to deposit the amount by cash / cheque to the cash By that time the authorized officer get the’ Test Number &,also give entry in the TT issue register.. iii) The cash department completes their formalities & then returns back the form to the remittance department. iv) After receiving the form prepare the message conveying form with all details & send the TT after informed the high officials. v) The client is given one slip named as TT memo as the proof of the issuance of the TT vi) When the TT message is sent, remittance department prepares the necessary advice. Mail Transfer: A mail transfer (MT) is the order to pay cash to a third party or for a credit to be passed to the account of the payee in the books of the agent. The order is to be made in writing and sent by mail. Mail transfers may be made by Airmail or Sea Mail, but in ordinary circumstances mail transfer are made by air unless a customer to the contrary makes a request. Cancellation of DD/PO/TT STEP 1 Application in written to the Manager of the account maintain branch. STEP 2 Verification of the specimen signature. Step 3 Journal positing Incoming Bills payable DD payable A/C—DR IFIC General A/C—–CR Outgoing IFIC General A/C—– DR D Bills payable DD payable A/C —–CR dddddddddddddddddA/C Party A/C————– Step 4 Step letter to the paying bank. Foreign Remittance: When a bank got this T.T, M.T, T.C and cheque from outside bank, which is not situated in the home country than it, will be called foreign remittance. Using these methods also has done it. Types of foreign Remittance: Between bank and non banks customers. • Between banks in the same country • Between banks in the different country • Between banks’ and central banking the same country. Between central bank of different country Different Types of Bank Books Scroll Book: Cash receipt of cheques of customers is written in scroll book. Telegraphic Transfer (TT), Mail Transfer (MT), Demand Draft (DD), Pay Order, Special Receipt (SDR) is also written in this book. Token Book: Verifying the given cheque as follows: Verify the date of the cheque (No money will be given to future date cheque) Verify the amount and compare mathematical and written amount. Then the cheque’s information is written in Token Book and gives a token (metal) to the customer. 4.6 Establishment Section This section deals with employee’s salary, many types of expenses such as purchase of pen, paper, equipment, machinery and payment of labor cost and employee conveyance. In case of leave of absence employee collects prescribed form this section. This section of the bank is under the second man of this branch. All paper of this section is first signed by the second man of the branch and then branch manager is informed. 4.7 Accounts Section This is obviously an independent and unique department, which works as the composition of all the departments of the branch, but it is under the In-Charge of the General Banking in this branch. This section in this branch is fully computerized. So the conventional large ledger and journal books are not kept like the nationalized banks. Only two personnel maintain the entire accounts Section. It receives the vouchers from all departments and prepares the subsidiaries and maintains accounts. End of the day all data are stored in CD and at the month end they are send to Head Office. Books maintained by this section Daily Position It shows the daily position of the branch Clean Cash It records all cash transaction of the day under different head to check the arithmetic accuracy of the transactions Extract Extract is prepared to reconcile inter branch transaction General Ledger There are different heads of the general ledger which are Prescribed by the head office and the accounts are maintained through those heads Statement of Affairs It is the balance sheet of the concern under periodic accounting system. It shows the daily profit of the concern along with the asset and liability of the respective day Accounts department prepares statement for Head Office Purpose and for submission to Bangladesh Bank as follows: Weekly Position SBS 1 SBS 2 Size wise, Range wise & Sector wise statement of deposit 4.8 Computer Department IFIC Bank uses computers extensively all over the branches and head office. Computer system is assigned with the responsibility of maintaining accounts records. All the account SB, CD, STD, Loan accounts are maintained in computer. The statement of affairs and other daily and monthly statements are produced from this system. The security measure of the branch is also maintained by this computer system.
Recommendation
In order to get competitive advantage and to deliver quality service, top management should to modify the services.
Rectify the Existing Problems
As there is no classified loan, branch should monitor the loans & advances closely to avoid classification in future.
Narayanganj Branch should extend with their all out effort to increase the credit portfolio and to procure more low cash deposit, increase non funded business so as to minimize dependency on interest earning from IFIC Bank general account and to improve overall business performance of the branch to maintain earning.
Narayanganj Branch should set up more CC camera in the branch to hold more control of manager in the branch. It can install CC camera in accounts department and clearing department as it is an important past of the branch and it is not always possible for the manager to visit all departments which has become important.
Narayanganj Branch can contact with the existing customers to make the dormant accounts operative.
When a joint stock company comes to open an account if it’s an existing one, the account opening officer should ask the copies of the Balance Sheet and Income Statement. These will reflect the financial growth of the company and its soundness but in practice bank do not do this. If they have all these that will help them to examine money laundering risk.
There are numbers of new private banks and some have already activated with their extended customer service pattern in a completely competitive market. Where as IFIC Narayanganj branch is far behind. They are not competitive in customer service because the officers do not behave in professional manner in fort of customer. Some time they are late in there service, which ultimately disturbs the respective customer.
Narayanganj branch personnel should train up about all sort of information regarding SWIFT and its service. Due to lack of proper knowledge about the operation procedures and services provided to the customers by SWIFT, certain customers are facing problem, as they have to wait for certain time to get service as there was one officer know about the procedure of SWIFT. He is not fully independent of handling SWIFT. Official training is the solution to this problem. For customer’s convenience in Foreign Exchange Department of IFIC Bank Ltd. should provide more personnel to deliver faster services to their honorable customer.
Now a day conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, online services and many others. IFIC Bank Ltd. should differentiate its services through adopting the modern facilities and implementing in the branch level.
To deliver quality service top management of this breach should try to mitigate the gap between customer’s expectation and employee’s perception and customer’s convenience should give priority.
Administrative cost of this branch is on the medium side, which has a major impact on profitability. Te manager should bring down the administrative cost and take all effective steps, strategy and action plan to reduce the cost at the desired level.
IFIC Bank should always monitor the performance of its competitors in the field of Foreign Trade.
Without proper knowledge in different laws, rules which set by Bangladesh Bank efficiency of employees cannot be optimize. Bank can arrange training program on these subjects and can test its employees which will improve their qualities.\
IFIC Bank Ltd. should focus on their promotional activities. They should also focus on the marketing aspects to let customers know about their products and offerings and more promotion is should be given to attract new customer.
IFIC Bank Ltd. must develop electronic banking system to moderate the service. Technological advantage of a bank ensuring its competitive edge in the market place which can only be achieved by improved technology, efficient manpower and better services. If bank get more market share through all these than it will reduce operating cost and generate new revenue. The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).
Without using modern technology no bank can even think of remaining in the business in near future. So the bank must decide right now how it can equip its branches with modern technology. Use of modern technology in one sense can increase cost but another sense it increase higher productivity and it attract big clients. It can introduce ATM service again in all branches which will bring speed in banking services.
Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that officials can implicate this in their job. People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously as well. Side by side it will give customers better felling about the bank.
Implementation
Some other important factors that should be focused on the development process:
Time consumed at service level should be minimized at optimum level.
Evaluate customer’s needs from their perspective and explain logically the shortcomings.
Customer’s convenience should receive priority over other.
Improve office atmosphere to give customers better feeling.
Use of effective management information systems.
Use appropriate techniques in evaluating customer need professionally.
To deliver quality service top management should try to mitigate the gap between customer’s expectation and employee’s perception.
Comments:
The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).
At the entry position the bank should enroll more expertise people to augment quality services.
Now a days-conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, on line services and many others. IFIC Bank Ltd. should differentiate its services adopting the modern facilities.
Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that official can implicate this in their job.
People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously.
Bank should provide advances towards the true entrepreneur with reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time.
Conclusion
From the learning and experience point of view I can say that I really enjoy my internship at IFIC Bank of Bangladesh Ltd. From the very first day, I was confident that this 3 months internship program at IFIC Bank Ltd. of Bangladesh will definitely help me to realize my future carrier in the job market. Performance analysis of a department of a bank is not so sufficient to measure and express perfectly within this short time of my internship period. But it is a great opportunity for me to get use to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the research report with necessary relevant information in my report. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employees in some sector, considering all of these very important factors, IFIC Bank should always try to improve their service level in every term.
The marketing department should think freshly about their marketing objectives and practices. Rapid changes can quickly make yesterday’s winning strategies out of date. As a developing private bank in Bangladesh, IFIC Bank shouldn’t allow their client to get dissatisfied with their service. They have their competitors who actively striving to take the advantages in every side. During the course of my practical orientation, I have tried to learn the practical banking to relate it with my theoretical knowledge, what I have gathered and going to acquire from various courses.
BIBLIOGRAPHY
Madura, J “Financial markets and institution”(2007-08) 7Th Edition
K. Frank Reilly & C. Keith Brown “Investment Analysis and portfolio management” (2009-10) 8th Edition
Dr. Debnath. R. M “Business of Banking” (2004) 1st Edition Lotus Publishers
Kotler, P. (2004) “Principles of Marketing”, Pearson Prentice Hall, 10th Edition
H.P. Collin “Dictionary of Banking & finance”(1996) universal book stall.
Scall Lawrence D. Charles Halley W.(1999); Introduction to Financial Management, McGraw-Hill, Inc., Singapore
Report on Practical Orientation in Banks, Several Issues
www.ificbank.bd.com
REFERENCES
Annual Report of IFIC Bank Ltd. 2008.
Academy Calendar of IFIC Bank: 2008
Bangladesh Bank Annual Report: 2007-2008
Different prospectus of IFIC Bank Ltd
