General Banking and Foreign Exchange Activities of National Bank

The main objective of this report is about is to explore the deposit mobilization activities of National Bank Ltd of Dhanmondi Branch. Other objectives of this reports are to acquaint with day–to–day functioning of service oriented banking business, to have practical exposure in banks that will help a lot to understand the future courses of the program, to be familiar with day to day functioning and service offered by a commercial bank, to observe and analyze the performance of the specific branch and the bank as a whole, to make a bridge between the theories and practices on banking operations.

Objectives of the study:

The general objective:

The general objective of the study is to analyze the general banking activities of National Bank Ltd at Shirajganj Branch :

Specific Objectives:

• To know the various general banking services of National Bank Ltd., Sirajgonj Branch.
• To be familiar with different products of National Bank Ltd., Sirajgonj Branch.
• To know the procedure of accounts opening and closing at different accounts in this branch.
• To know the cheque book issuance procedure to Account Holders of National Bank Ltd, Sirajgonj Branch.
• To know its online banking services.
• To know the amount service charges on different general banking services of this Bank at Sirajgonj Branch.
• To find out some problems related to its general banking services.
• To make some recommendations based on the findings.

Methodology of the study:

The study is explanatory in nature. Data have been collected from both primary & secondary sources.

Primary sources of data:

All the employees and clients of National Bank Ltd, Shirajganj Branch.

Data collection methods:

• Conversation with bank employees.
• Informal conversation with clients.
• Personal observation
• Performance of practical activities

Secondary sources of data:

• Annual report of National bank Limited
• Different relevant text books
• Various files, balance sheet and various documents
• Bangladesh bank publications.
• Web site: www. nblbd.com

Historical Background:

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The members of the board of directors are creative businessmen and leading industrialists of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution, automated all its branches with computer networks in accordance with the competitive commercial demand of time. Keeping the target in mind, NBL has taken preparations to open 15 new branches and 5 SME centers by the year 2012. In addition, NBL further is expanding their presence through developing and expanding the SME    financing, Any Branch Banking and Off-shore Banking facilities.National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception, it was the firm determination of National Bank Limited to play a vital role in the national economy at present, NBL has been carrying on business through its 157    branches spread all over the country. Since the very beginning, the bank has exerted much emphasis on overseas operations and handled a sizable quantum of home bound foreign remittance. It has drawing arrangements with 415 correspondents in 75 countries of the world, as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangements with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. This has meant that the expatriates can remit their hard-earned money to the country with much ease, confidence, safety and speed.NBL was also the first among domestic banks to introduce International Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programs for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their livelihood. Since its inception, the bank was aware of complying with Corporate Social Responsibility. In this direction, NBL has remained associated with the development of education, healthcare and has sponsored sporting and cultural activities. During times of natural disasters like floods, cyclones, landslides, NBL has extended its hand to mitigate the sufferings of victims. It established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation runs the NBL Public School & College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. The Transparency and accountability of a financial institution are reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh. The bank has a strong team of highly qualified and experienced professionals, together with an efficient Board of Directors who play a vital role in formulating and implementing policies.

Vision

Ensuring highest standard of clientele services through best application of latest  information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.

Mission

Effort for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, accountability, and improved clientele service as well as to our commitment to serve the society, through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hears of the people as a caring companion in uplifting the national economic standard through continuous s up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.

Mechanisms

• To identify customers credit and other banking needs and monitor their perception towards our performance in meeting those requirement.
• To cultivate a working environment that fosters positive motivation for improved performance
• To increase direct contract with customers in order to cultivate a closer relationship between the bank and its customers.
• To review and update policies, procedures and practices to enhance the ability to extend better services to customers.
• To train and develop all employees and provide adequate resources so that customer needs can be responsibly addressed& to strive for customer satisfaction through quality control and delivery oftimely services.

General banking:

Generally all the activities of a bank is called general banking. Banking is the summation of financial services like collection of deposit from people, collect cheques, grant loans, safeguard money for its customers. In NBL the following departments are under general banking:

1. Account opening Department
2. Clearing Department
3. Remittance Department
4. Deposit Department
5. Cash Department
6. Accounts Department

Account Opening Department:

Account opening is the gateway for clients to enter into business with bank. it is the foundation of banker customer relationship. This is one of the most important sections of a branch, because by opening accounts bank mobilizes fund for investment. A customer can open different types of accounts through this department, such as:

1. Current accounts (CD)
2. Savings account (SB)
3. Short term deposit account (STD)
4. Fixed deposit account (FDR)
5. Monthly saving scheme (MSS/NMS)

Account Opening Procedure:

 Deposit Schemes:

Savings deposit: National Bank offers a hassle free & low charges saving account for its customers. Hence there is a restriction on the withdrawal in a month .Heavy withdrawals are permitted only against prior notice. Interest is given upon the lowest deposited money for that month. Withdrawal amount should not be more than 1/4^th of the total balance at a time & limit twice in a month.

Current Deposit

National Bank Limited offers customers current deposit facility for day-to-day business transaction without any restriction. Current deposit is purely demand deposit. There is no restriction on withdrawing money. No interest is given on deposited money. It is justified when funds are to be collected and money is too paid at frequent interval.

Short Term Deposit

National Bank Limited offers interest on customer’s short term savings and gives facility to withdraw money any time. Generally various big companies, organizations, Government Department, keep money is STD account .Frequent withdrawals is discouraged and requires prior notice. The deposit should be kept for at least seven days to get interest.

Rate:

• For Financial & Non Bank Financial institution -1%
• For Institutional deposit other than Financial Institution & Non Bank Financial Institution-4%

Fixed term Deposit

National Bank Limited offers fixed term savings that will scale up you’re saving Amount with the time. Fixed deposit is one, which is repayable after the expire predetermined period fixed by him. The period varies form 1 month to 12 months. These deposits are not repayable on demand but they are withdrawing able subject to a period of notice. Hence, it is a popularly known as ‘Time Deposit’ or ‘Time Liabilities”. In case of FDR it is clearly mention that when the amount will be withdrawal & the principle & interest amount.FDR account holder gets a FDR slip. If the account holder withdraws his money before maturity date he does not get any interest. In case of FDR holder death, his nominee will get the amount.

FDR Rate:

Monthly Saving Scheme (MSS/NMS)

“See your small savings grow with NBL.”

National Bank Limited offers monthly savings scheme for its retail customers. Customers can deposit money for a period of 3, 5 or 8 years. The monthly installment & their rate are as follows:

RFC Deposit

National Bank Limited gives opportunity to maintain foreign currency account through its authorized dealer branches. Bangladesh nationals residing abroad or foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees.

NFC Deposit

National Bank Limited gives opportunity to maintain foreign currency account through its authorized dealer Branches. All non – resident Bangladeshi nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing NFCD

Issuing Cheque Book:

New Account holder has to fill up an application form, which is provided by NBL .After verifying depositor signature the authorized officer put branch seal, and put signature. Seal, name of the account holder, account number, cheque number are recorded in the register book. When all this function is successfully completed the client gets his cheque book and put his signature on the register book.

There are three types of cheque book in Account Opening department:

• Ten leaves Cheque book: used only for savings accounts
• Twenty ieaves Cheque book: used for current account
• Fifty leaves Cheque book: used only for current account but this is provided those who are loyal customer or those depositors who are loyal customer when a existing customer wants to withdraw a new cheque then he should give a requisition slip to the bank which he gets from previous cheque book.

In Case Of lost cheque book, account holder has to place a general diary(GD) and must have to fill an indemnity bond which has been authorized  by the introducer with a stamp Paper of 150& stop payment is given by  the bank so that no payment can be made  by any branch.

Application Form for Current /Savings/STD/FDR Account holder:

• Personal account
• Information about & photo of Nominee.
• Signature of account holder
• voter id no. of nominee &account holder
• Information about & photo of account holder
• Transaction profile
• KYC(know your customer) form-1
• KYC(know your customer) form-2
• KYC(know your customer) form-3
• Introducer information

In case of current account–

• Tin Number
• Information about the business
• Agreement of the business

In case of joint account-

• Information about joint account holders
• photographs attested by introducer
• specimen signature of account holder

In case of partnership-

• Certified copy of resolution of opening an account
• Certified copy of  certificate of registration
• Resolution of executive committee
• Copy of Govt. approval

In case of limited company:

• Certified copy of the memorandum & articles of association

• Certificate of the incorporation of the company
• Certificate from register of joint stock companies
• Latest copy of balance sheet
• extract of resolution of the board
• List of directors
• authorized signature
• Name

In case of fixed deposit: FDR slip contains

• Amount in figures
• Beneficiary’s name and address
• Period
• Rate of interest
• Date of issue
• Date of maturity

Closing of an account:

• If  the customer is desired to close the account
• If NBL finds that the account  is inoperative for a long duration
• If garnishee Order is issued by court.

To close the account, the checkbook is to be returned to the bank .NBL takes all the charges by debiting the account & the remaining balance is then paid to the customer. Necessary entries are given to the A/c closing register and computer.

Clearing Department:

Cheque, Pay order, demand draft, Pay Slip, collection of amount of other bank on behalf of its customer is are a basic function of clearing department.

i) Meaning of clearing:

Clearing is a process one mechanism set up by the bankers for the purpose of setting their reciprocal debts, by exchanging among themselves bills, drafts or cheques drawn on one another. Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house.

ii) Function of Clearing Department:

• Receiving cheques  for  collection
• Crossing the cheque
• Posting the chequein computer
• Clearing seal &proper endorsement of the cheque
• Separation of cheque from deposit slip
• Sorting of cheque branch wise & bank wise
• Preparation of 1^st clearing house validation sheet
• pass outward instrument to the clearing house
• Pass inward instrument to respective department
• Return instrument in case of dishonor
• Prepare IBCA or IDA for respective branch or HO.

iii) Meaning of Clearing House:

Clearing House is a institution where a specific areas or region scheduled banks settles their ineptness or more specially setting this issues. The entire scheduled bank representative meets in a specific time in specific rooms of central bank. Bangladesh Bank performs the clearing house in Dhaka, Chittagong, Rajshahi, and Khulna& Bogra. Where there is no branches of Bank, Sonali Bank arrange this function.

iv) Member of Clearing House:

NBL is a scheduled bank. According to the Article 37(2) of Bangladesh Bank

Order,1972,the banks, which are the member of the clearing house, are called as Scheduled Banks .The scheduled banks clear Cheque drawn upon one another through the clearing House.

v) Types of Clearing:

Only the regular customers who have Savings, Current, STD, Loan Account .There are two types of clearing:

• Outward Clearing: When the branches of a bank receive cheque from its customers drawn on the other banks within the local clearing zone for collection through clearing house, it is Outward Clearing.
• Inward Clearing: When the banks receive Cheque drawn on them from other banks in the clearing house, it is Inward clearing.

vi) Receiving cheque for collection:

In NBL cheques of its customers are received for collection from other banks. In case of receiving cheque, following points should be kept in mind:

• Name of the account holder same in the cheque & deposit slip
• Amount in the cheque &deposit slip must be same in words &in figure
• The cheque should not carry a date older than the receiving for more than 6 month and Bank &Branch name of the cheque ,its number& date in the deposit slip
• Signature for confirmation of date ,amount in word/ in figure cutting & mutilation of cheque and Cheque must be crossed
• Account number in the deposit slip must be clear
• Depositor’s signature in the deposit slip and Cheque must be signed

After receiving cheque the the crossing seal & endorsement seal must be given before send for clearing. After collection of the cheque officer record it in the computer, diffentiate it according to same day or normal wise. Cheque amounting more than 500000 (five lac) are send to same day clearing.

Demand Draft:

Demand draft is an instrument containing an order of the issuing branch upon another branch known as Sirajgong branch for payment of a certain amount of money to the payee or to his order on demand by the beneficiary presenting the draft itself.

Process of Issuing a Demand Draft:

1. Get the application form properly filled up signed by the applicant
2. Complete the lower portion of the application form meant for bank use.
3. Calculate total amount in taka including bank’s commission charges etc.
4. If the cheque is presented for the payment of the D.D officer should get the cheque duly passed for payment by the competent authority and record the particulars of the D.D. on the cheque.
5. If the purchaser desires his account with the branch to be debited for the amount of D.D. the officer should get the A/c holders signature verified properly, from the Signature card on the record of the branch. & debit client’s A/C for the total amount including commission, charges etc.

6. If cash deposit is required, request the purchaser to deposit money at cash counter.
7. The cash department, after processing of the application form, cash or cheque, will validate the application form. The application form is sent to the remittance department for further processing. The remittance departments issue a DD in favor of the client. The issuing branch sends credit advice to the Sirajgong branch for making payment.

Payment of Demand Draft:

1. Whether the draft is drawn on their branch or the draft is crossed or not.
2. The sign of the authorized officer of the issuing branch is to be verified to be sure that draft is genuine and Endorsement on the back, the draft must be regular in case of presented through clearing.
3. The amount of the draft should not exceed the amount written on red ink on the top of the draft.
4. The payee is to be properly identified in case of cash payment. The particulars of the draft i.e. number, date, amount, name of the payee should be verified.

After verification, payments are made & necessary entries are made in the D.D payable register. If the client is from other branch, then payment are made through LBC, In case of client of other bank, payment are made through clearing.

Issue of duplicate draft:

Duplicate DD not normally issued unless thoroughly satisfactory evidence is produced regarding loss of draft .If the draft is lost or stolen, a duplicate draft  issued by the issued by the issuing branch.

On received of the written request from the purchaser. The issuing branches immediately issue a stop payment to the Sirajgong branch.

After the Sirajgong has acknowledged the stop payment order & confirmed that the local draft in acquisition remains unpaid at their end, the issuing branch should obtain an indemnity bond .Letter of indemnity as per prescribed form duly signed by him. The branch will thereafter write to head office, for their approval of issuing a duplicate draft.

The head office on receipt of the request from the issuing branch will immediately issue a caution circular to all the branches regarding the loss of local draft asking them to stop the payment.

The head Office thereafter issue a clearance to the issuing branch for issuing a duplicate draft in lieu of original reported lost and On receipt of clearance from the head office, the issuing branch will issue a completely fresh draft in lieu of the original reported lost. The duplicate draft will clearly resemble those of original draft.

Cancellation of Demand Draft:

Only the purchaser can request the issuing branch for cancellation of L.D. The Sirajgong branch cannot cancel a L.D. The Sirajgong branch can accept cancellation instruction only from the issuing branch. The following procedure should be followed:

• The purchaser should submit a written request for cancellation of D.D. attaching therewith original L.D.
• The signature of the purchase will have to be verified from the original application form.
• Prescribed cancellation charge is to be recovered from the applicant & only the amount of the draft less cancellation charge should be refunded.
• The L.D. should be affixed with a stamp cancelled upon proper authentication & the original should be reversed. An IDBA for the cancelled D.D. should be issued on the Sirajgong branch. Cancellation of D.D. should also be recorded in the D.D. issue register.

Stop Payment of Demand Draft:

As the issuing branch issues the draft, the payee or purchaser of the draft cannot give stop payment instructions to the drawee branch .If   a paying branch receives a request from the payee /endoree or the purchaser for stopping payment, it will ask them to approach the issuing for the purpose.

Foreign Remittance Department:

Foreign remittance department involves payment of foreign draft, Payment of money from abroad. Besides fully or partially owned exchange companies, the bank presently have an extensive network of drawing arrangement with 37 exchange companies located in 13 countries like Kuwait ,oman ,bahran ,saudArabi, UAE, Malaysia, Singapore, UK, Italy ,Canada etc. Foreign department includes-

1. Payment of FTT
2. Payment of FDD

Requirement for receiving:

For receiving money, clients have to fill up a prescribed form in case of western union. For others clients have to provide the following information:

• Name of the receiver
• Name of the borrower
• MTCN number
• Phone No of both sender & receiver etc.
• Present/permanent Address
• Amount of money etc.
• photocopy of ID/passport
• Occupation etc

The officer collects the information & provides a computerized document for made payment through pay order / instantly.

Foreign D.D:

Moreover the banks also receive Foreign Draft which is paid through clearing to the client.

Bills Collection:

One of the most important functions of National Bank is to collect bills for customer:

Outward Bills for Collection (OBC): OBC exits with branches different bank outside the local zone. The bank sends forwarding letter to the responding branch. Here one branch sends cheque of another bank to the branch outside the local branch for collecting bills. Here the outside branch collects bill& sends to the collecting branch & the branch makes payment to the customer.

Inward bills for collection (IBC): When the bank collects bill as an agent of the collecting Branch. The bank receives a forwarding letter. Here the bank receives cheques from outside or local branch. & collect bills & sends to the collecting branch.

Local bills for collection (LBC):

LBC exist with different branches within the local zone. It is a transaction between two branches within a boundary.

All the Bills for collection are recorded in register containing the following information:

• Date
• customer
• Their no.
• Drawn on
• Amount
• Particulars of instrument
• Collecting Agent
• Commission, Postage etc.

Necessary vouchers are prepared like debit, credit &contra voucher & send for transfer.

Accounts Department:

Accounts Department is called as called as the nerve center of the bank. In banking business transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with depositor’s money. Improper recording of transaction will lead to the mismatch in the debit &in the credit side. To avoid these mishaps, the banks provide a separate department; whose function is to cheque the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called accounts department. If any discrepancy arises regarding any transaction this department report to the concerned department.

Beside this the bank has to prepare some internal statement as well as some statutory statements, which are to be submitted to the central bank & the Head Office.

i) Functions of  Accounts Department:

• Recording the transactions in the cash book.
• Recording the transactions in the general & subsidiary ledger
• Preparing the daily position of the bank comprising of deposit & cash.
• Preparing the daily statement of affairs showing all the assets and liability of the branch as per general & subsidiary ledger separately.
• Making payment of all the expenses of the branch
• Recording inter branch fund transfer & providing accounting treatment in this regard and Preparing monthly statement of the employees
• Preparing weekly position for the branch which is sent to the head office to maintain cash reserve requirement (C.R.R)
• Preparing weekly position for the branch which is sent to the head office to maintain Statutory reserve requirement(S.L.R)
• Make charges of different types of duties
• Preparing the for the branch by fixing the target regarding profit & deposit so as take necessary steps to generate & mobilize profit
• Checking of transaction list
• Recording of the voucher in the voucher register

ii) Daily Statement:

Daily statement is the most important statement to calculate the transaction of a day. It is prepared at the end of the day. Daily statement provides actual position as well as reliability of national bank it contains the following information:

Transfer Book:

Transfer book is one of the daily activities of accounting process. It is a handwritten function. Account Officer has to make entry of each and every transaction in transfer book without cash & clearing voucher. Transfer book contains two side of transaction as debit & credit. Each & every transaction has to have equal amount on both side of transfer book. All the vouchers, documents, instrument recorded into transfer book should contain transfer seal as well as transfer no of the book. Account officer register it in the register book before computer posting. End of banking hour account officer calculate transferred amount and debit balance & credit balance should be equal from the transfer book the number of voucher made on that day is calculated to record in voucher register.

Voucher Register:

Voucher register is a record book of no of voucher. Number of vouche are made each day is recorded in voucher register as per date and under particular head. No of vouchers are recorded under following head as:

1. Ledger C/D: No of voucher made on current deposit on a particular date.
2. Ledger S/B: No of voucher made on saving deposit on a particular date
3. Ledger cash book: No. of voucher made on cash book.
4. Ledger Income/expenditure: No of voucher made for income/expenditure
5. Ledger B/L: No of vouchers made for bills payable.
6. Ledger Subsidiary: No. of voucher made for subsidiary
7. Ledger IBTA: No of voucher made on IBTA online in a particular date.
8. Lerdger Loan: No. of voucher made on loan.
9. Total Ledger: Summation of no of vouchers made on a particular date.

Cash Book Record:

Cash book record is one of the daily statements prepared at the next day of the working day. In cash book record the information gathered from data sheet of bank record of previous day. In cash book Dr. is placed at credit side & Cr. side is placed at Dr. Side.

Total voucher = CIBTA+ Sub diary +Bills Payable +Current Deposit +Savings +Cash Book +loan +Income/Expenses.

CIBTA: Summation of amount of CIBTA

Subsidiary: Summation of amount of sundry deposit and sundry asset.

Bills Payable: Summation of Pay order issued, Pay slip, Demand Draft payable

Current Deposit: Amount of current deposit

Savings: Amount of savings deposit is placed.

Cash Book: Summation of amount of short term deposit, fixed deposit, MMS, NMS, LBC, LDBC, Banks liability.

Loan: Summation of amount of Loan general, SOD general, cash credit, packing credit, LDBP.

Income/Expenses: Summation of amount of Income/Expenses.

vi) Supplementary:

NBL prepares supplementary to keep record of all about all the transactions occurs in a transaction day. Supplementary is prepared at the next day of the working day. Supplementary for cash credit

1. Supplementary  for fixed deposit
2. Supplementary  for SOD
3. Supplementary  for Income
4. Supplementary  for STD
5. Supplementary  for  NBL monthly savings scheme
6. Supplementary  for  savings bank deposit
7. Supplementary  for  Liability
8. Supplementary  for  Demand Draft
9. Supplementary  for  Pay Slip
10. Supplementary  for  Payment Order
11. Incoming Online Registered for all A/C type

Bucket Statement:

National Bank Limited prepares Bucket Statement monthly. Bucket Statement is an accounting statement containing four parts:

• Asset Maturity Bucket

• Liability Maturity Bucket
• Interest Rate Risk Maturity Bucket
• Data Sheet

Cash Department:

Bank, as a financial institution accepts surplus money from the people as deposit and give them opportunity to withdraw the same by cheque etc. But among the banking activities cash department play an important role. It denies the main function of a commercial bank receiving deposit and paying cash on demand. As the department deals directly with customers, the reputation of the bank depends on it.

Function of Cash Department:

Cash Receiving:

When customer wants to deposit his money then he deposited it by pay slip in the cash counter .After receiving money pay slip from client ,officer do the following things:

• Officer ensure that all the writing on pay slip have been right.
• They count money & write denomination in the backside of the payslip
• Then officer put cash receive seal on the carbon copy of the pay slip
• Officer put his signature on the carbon copy of the pay slip
• Then register in cash receive register book.

Cash Payment:

When depositors want to withdraw money then he present or order cheque for withdrawing cash from cash counter. At first deposit holder present his cheque on the deposit desk. Then the authorized officer checks that Cheque and amount has been balance in his account. When every things right then the amount has been debited to the depositor account on which the cheque has been drawn. If there is any doubt in the signature which has been appeared on the specimen signature card has verified. Then bearer has sighed on the back side of the cheque& authorized officer made payment. The authorized officers have to maintain cash payment register which includes-

• Cheque No.

• Account No.
• Payment Amount
• Authorized signature
• Payment date

Transaction cash money:

At the beginning of the banking hour in charge of the cash department provides some money from the vault to the counter officer meets client demand. Cash in charge keep record of that amount. At the end of the banking hour balance must be equal with the balance on the receipt &payment book.

Vault Requirement:

Each branch of national bank ltd has ability to maintain five million taka in their vault to meet their daily transactpon.Because every vault has an insurance premium which limit is five million taka. If any branches need more than five million taka then branch bring it from principle branch or the nearest branch of NBL.

Cash Balance book:

In cash balance book keep record of that cash has maintained by the cash in charge. In cash balance book opening balance book opening balance have to be always the previous day closing balance. At the end of banking hour all receives have to be added with opening balance then deducted all his payment from the total balance. Remaining balance has continued as the opening balance of next transaction day.

Deposit Department:

• To record all the deposit information of SB, CD, STD, FDR, NMS, and MMS A/C after an account is opened.
• Verify the signature with the computer recorded specimen in case of cheque receives or payment & requisition slip.
• Confirmation of the balance in case of cheque receipt or payment.
• Made confirmation of the online deposit & payment.
• Posting all the vouchers according to cash, clearing &voucher
• Posting of all the requisition slip
• Balancing any amount of deposit & payment etc.

Any receive & payments through cheque are first posted in computer & then are send to cash department. Online receipt & payment are also are posted in computer either in cash or cheque & vouchers are posted in computer. So deposit plays an important function in the overall banking activities. It is the centre of all banking act ivies. So as a private bank NBL is trying it’s best to extend their service to the public. NBL, Sirajgong Branch provides all kinds of commercial banking services to its customers General banking is engaged in cash receipt, payment, cheque clearing, opening accounts, deposit scheme, and local remittance etc. So if the MBL wants to continue a profitable business and position itself as one of the top bank in the bank arena then it has to earn the trust of their assets and    must be concerned about their commitment to the customers.

Findings of the study:

• NBL committed to their prospective customer to honor its cheque within 30 seconds after submission but unfortunately most of the time they are unable.
• NBL provides high quality financial services to strengthen the well-being and success of individual industries & business communities.
• Lack of motivation in mid and lower level officers.
• NBL has not yet setup proper networking system, which is very important to compete with the others in this technical world.
• The software those are used by the Bank is not compatible to the technical world. The others competitive Banks are attracting the people with new technologies for the new generation.
• Modern technology is hardly used to maintain documentation, yet they are using register-based document.
• Lack of promotional initiatives to expand the Foreign Exchange business.
• Strictly implement Credit Risk Grading process
• In a few case it has been observed that the right person is placed in the right position.

Recommendations:

• The bank should take the initiative to develop an effective research and development center to get innovative ideas to capture the competitive market.
• Management should set proper planning for its operations of each and every work for the whole bank as well as all branches of NBL.
• Accounting system of the Bank should be software base.
• The number of customer is increasing. To keep the commitment NBL must increase its manpower. So the customer gets their result without wasting time.
• NBL should take necessary action to motivate its officers to encourage them to work hard to make them believe that they are also a part of the team and the bank does think about them.
• Stuck up advances should be reduced through more recovery at lower rate of interest.
• NBL should take necessary step to increase their network facilities.
• Automated Teller Machine (ATM) card facilities are not easy of NBL. So they are losing their many potential customers. So I think NBL should take necessary step to easy their ATM card facilities for their customers. .
• Top management must ensure the proper implication of IT in all branches.
• In order to provide service, full-scale online system should be implemented. faster
• Management should place right person in the right place
• The bank should go for advertising about their services and facility for their client.

Conclusion:

The research paper is all about the General Banking and new products and services of National bank ltd. National Bank is the first private bank of Bangladesh. The existing products were successful to reach the consumer’s mind and as a result the number of NBL has increased day by day. The old customers were satisfied with the exiting

Products but day by day the numbers of consumers are increasing and with that the new generation is getting connected with NBL.

In the changing concept of banking, financing in some areas, especially in advances to agriculture, small industries, small borrowers and export oriented industries are assuming great importance. Investment is the most important asset as well as the primary source of earning for the bank. On the other hand this is also the major source of risk for the bank. So the bank should always try to make an appropriate balance between its return and risk involved with the investment portfolio. Close supervision and effective follow up of investment activities might reduce the risk to a great extent. An unsupervised investment might be stuck up. Consequently not only the depositors but also the general share holders will be deprived of getting back their money from the bank.

So as a private bank NBL is trying it’s best to extend their service to the public. NBL, Sirajgong Branch provides all kinds of commercial banking services to its customers. Foreign Exchange department is doing well in rending all the services related to the international trade and remittance. Though the advance of Sirajgong Branch is high, the Credit department will be in a good position if the Branch able to recover that. General banking is engaged in cash receipt, payment, cheque clearing, opening accounts, deposit scheme, and local remittance etc. So if the NBL wants to continue a profitable business and position itself as one of the top bank in the bank arena then it has to earn the trust of their assets and must be concerned about their commitment to the customers.