General Banking Division of Bank Asia Limited.

Executive Summary

For my internship program, I have got the opportunity to work at one of the leading local commercial banks – the Bank Asia Limited. Bank Asia Ltd. is one of the most well known private banks in our country. It undertakes all types of banking transactions to support the  development of trade and commerce in the country. Above all of their service they go through

their objectives such as earning and maintaining  CAMEL rating  strong,  establishing relation- ship banking, introducing  fully  automated systems, ensuring an  adequate  rate  of return on investment, maintaining  adequate  liquidity  to  meet maturity obligations, pursuing an effective system of  Management  by  transparency  and  accountability at all levels.

I am placed under General Banking division of Bank Asia. This division is responsible for providing various types of services to its customers. Hence, I think it would be interesting to explore the General Banking Activities and different services offered by Bank Asia Ltd.

The report focuses on discussing the history and current profile, various activities, performance of Bank Asia and presenting the characteristics or features of various Consumer Banking products and services offered by Bank Asia Ltd.

This report mainly concentrates on general banking division of Bank Asia Ltd. There are four departments’ Cash, Customer Service, Accounts and Clearing department. This also focuses identifying the customers’ perceptions and satisfaction level associated with overall consumer banking services/products offered by Bank Asia Ltd. A questionnaire is used to collect data from the customers to find their satisfaction level regarding overall services/products offered by Bank Asia Ltd. Data from surveys has been used to examine the factors that the customers think highly affect their satisfaction level; and to suggest ways of improving the services offered by Bank Asia Ltd. These data are analyzed using MS-Excel and by forming certain hypotheses for the qualitative and quantitative variables.

As  a  part  of  fulfilling their objectives through  their  customer  Bank Asia Ltd  offers  the  following  accounts: Current  Deposits,  Savings  Bank  Deposits,  Fixed  Deposits,   Short Term Deposits, Monthly Term Deposits, Any other deposits as  may be approved/ advised by Head  Office.

The branches of the bank operate as independent accounting unit.  They  submit  statement  of      affairs  and  other  prescribed  returns  direct  to  Head  Office  where  these  are  consolidated  in  the form  of a statement  showing  assets  and  liabilities of  whole  Bank as  at  the  close  of          business Thursday  and  at the last working day of each  month.

The system  of transactions  of  the  bank  is  essentially  double entry  system  of  book keeping.  But for  quick  and  accurate  recording  as  well  as  for  arriving  at  daily  financial  position       specialized form  of  double  entry  system  book  keeping,  named  slip  system  under  self-balancing  method  is followed  by  the  bank.  The  golden  principle  of  debiting  or  crediting  is the  same  as  those  of double  entry  system.  In  the bank,  instead  of  recording  transactions  in  journal  initially,  these are  directly  recorded  and  posted  in  the  ledger  (computer) separating  the  debits  and  credits  by slips or voucher system.

The findings paved way for effective recommendations for Bank Asia customer services. Bank Asia needs to focus more on providing superior quality services to its customers. Bank Asia service representatives need to be more responsive, empathetic and caring towards its customers. Customers’ problems should be solved with special care. Service or transaction completion time should be faster so that the customers need not to wait for long time. Staff training can be arranged in order to increase the competency and efficiency level of Bank Asia staff. Bank Asia can conduct surveys or telephone interviews or take suggestions from the clients to further improve and revamp their services.

Customer satisfaction is a critical component of success of a business. Satisfaction of customers is very important for Bank Asia, as it is one of the leading local commercial banks of Bangladesh. It is the satisfaction level of customers that determines the current and future position of the bank, their reputation and image, and also contributes to the growing base of customers for the bank. So, it is very important for Bank Asia to take effective actions to secure the satisfaction level of the customers.

1.1         ORIGIN OF THE REPORT

In today’s world student is not just limited to the books; it is the tool to understand the real world and applying the knowledge the betterment of the society as well as business. From education the theoretical knowledge courses of the study, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect combination of theory and practice is paramount importance in the context of the modern business world in order to resolve dichotomy between these two areas. Therefore, Department of Finance, University of Dhaka – Bangladesh for its potential business undergraduates to get three months practical experience known as ‘internship program’. For my internship program, I have got the opportunity to work at the Shantinagar Branch of Bank Asia Limited office. I am placed under the general banking department. I have worked for customer service department, clearing department and foreign exchange department under general banking division. But I spent more time on customer service department. The consumer banking segment of Bank Asia is responsible for providing a wide range of consumer banking services to its consumers.

My internship program commenced from August 14, 2011 to November 14, 2011 and during this period, I have learned about the various consumer banking products and services that Bank Asia offers to its clients. After three months of organizational attachment with the bank, I have decided to prepare a report to explore the satisfaction level of customers regarding consumer banking products and services.

I am under the direct supervision of Dr. M. Farid Ahmed Professor, University of Dhaka for my internship program. My supervisors duly approved my topic for the internship project, which has been prepared to study general banking division consumer products and services offered by Bank Asia Limited.

1.2         RATIONALE OF THE STUDY

Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more impartment in developing country like Bangladesh. The whole scenario of the economy country of a country can be ascertained by examining the overall condition of banking sector. In Bangladesh, the banking sector dominates the financial sector and macroeconomic management largely depends on the performance of the banking sector. It was increasingly felt that bank should be allowed in the private sector for giving a fillip to development process on the basis of private initiative.

 There are various departments under General banking division like Customer service, Cash department, Trade service department, Clearing & Remittance service. I have focused all the departments briefly under general banking division of Bank Asia Ltd. Shantinagar Branch on my internship report.

1.3         OBJECTIVES OF THE STUDY

This report in Bank Asia Ltd for some distinguished objectives, which is as follows:

• To fulfill the academic requirement.
• To present the overview of Bank Asia Ltd.
• To gather knowledge about banking companies operation in field.
•  To gather knowledge and real life experience in the official environment.
• To apply theoretical knowledge in the practical field
• To have the exposure to the functions of the trade service section
• To observe the working environment in commercial banks.
• To identify a link between practical operation aspects of the bank to complementary the theoretical lessons.
• To qualitatively and quantitatively analyze the factors which influence customer satisfaction? Various factors that affect the level of customer satisfaction is carefully identified and analyzed.
  • Another objective is to measure the degree of satisfaction of the customers of consumer banking products of Bank Asia. Customer satisfaction is a critical factor for any organization. By knowing customer’s perceptions and attitudes regarding the products and services, an organization can improve its performance level. The importance of customer satisfaction is the main motive behind undertaking this report.
  • Finally, the other objective is to suggest ways of improving the services to accommodate the rapidly growing client base of Bank Asia Ltd.

1.4 METHODOLOGY

1.4.1 APPROACH

Information used to prepare this report has been collected from both primary and secondary sources. The primary sources provide the report with reliable data and information relating to customer and the bank’s operations. On the other hand, the secondary sources have been an indispensable source of information regarding the historical background of the bank, its functions, and descriptions of its various departments.

1.4.1.1 Primary Sources:

Three months practical participation in internship

• Relevant file study provided by the officers concerned.
• Personal experience gained by visiting different desks during internship period
• Oral interview of the responsible officers

The Questionnaire is used as the primary vehicle to obtain data necessary to perform the required analysis. The questionnaire is structured in nature.

1.4.1.2 Secondary Sources:

Information is obtained from sources such as: (1) company annual report, (2) company web site, (3) various internal and external banking circulars, (4) departmental guidelines and (5) Prudential Central Bank Guidelines and Circulars and (6) internet resources and journals.

LIMITATIONS OF THE STUDY

• Constraints arising from the use of Confidential Banking information which is required to be disguised so that official secrecy is consistently maintained.
• Non-disclosure of certain information.
• The survey is limited to the customers of the Shantinagar branch only.
• Lack of comprehension and responsiveness of the customers is a major problem in the collection of data.
• Time constraint is also one of the factors that curtailed the scope of the study.
• Rush banking hours and hectic schedules of the banking staff is another obstacle to the scope of the study. The Customer service managers and officers are busy meeting their targets and it is very difficult for me to get some practical ideas regarding their ideas, expectations and opportunities regarding my topic. 

Profile of Bank Asia Limited

2.1 Introduction

Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more important in a developing country like Bangladesh. Bank Asia Limited is moving forward with its line of products and services for each of its customers segments – retail, SME and corporate clients. The Bank’s services, backed up by real time online banking software, are capable of handling customized needs of the clients in all these segments. Challenging and exciting times are ahead of the Banking industry. Bank Asia is ready to take the advantage of the opportunities that are emerging as a result of the booming global prosperity and of the domestic economy, increased awareness of banking among the average citizen, and the underlying demographic trends. With the visionary Board of Directors, competent management team, quality manpower, advanced IT infrastructure, market oriented product lines, and the unwavering commitment of the valued customers, the aim of the Bank is to surpass their own standards of performance both commercially and as a good corporate entity. The Bank anticipates expanding the corporate banking business with more focused approach. The Retail banking and SME banking are expected to help in diversifying the Bank’s portfolio. The bank also has plans to expand the branch network to reach more customers. Plans are underway to expand the Bank’s own proprietary and shared ATM network; to incorporate additional modules into “STEALER”, to enhance the IT infrastructure, and to provide additional facilities under other alternative delivery channels as well. The Bank’s Credit Card business is expected to contribute to the bottom line as well as provide added convenience to Bank Asia’s retail clients.

For preparing my internship report, I have chosen Bank Asia Limited and gathered all the general information required for evaluation of its general banking department’s policies and procedures and analyzing of whether it properly satisfy the customers of  Bank Asia Limited .

2.2 History

“For A Better Tomorrow” is the mission of Bank Asia Limited through a contemplation of assuring ‘A professional term of Bankers is running the day-to-day operation of the Bank’.

Bank Asia Ltd. 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 September 28, 1999. Since its humble beginning, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank. During this short span of time 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 to 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. The Bank at present carrying its banking activities through thirty six branches including ATM, Locker, SMS, Internet Banking, SME & Foreign Exchange services in the country.

Bank Asia Limited, Shantinagar Branch started its operation on January 21, 2009. The branch was inaugurated by the Chairman of Bank Asia Anisul Rahman Sinha & M.D. Erfanuddin Ahmed. Since inauguration, the performance of the branch has been elevating day by day.

2.3 Mission

• To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy.
• To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees.
• To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of professionals.

2.4 Vision

Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.

Departments in Bank Asia Limited

                                                                                                Source: Primary Data

Human Resource Department

In the evolving banking arena innovation and specialization will be the key to  maintaining competitive  edge.  A  transparent  process  to  recruit  the  best  talent  is  successfully  established through  the  Human  Resource  Department. The  human resource  department  conveys  a number  of training  and  development  programs  throughout  in  an  effort  towards  continuous  development  of the  Human  product  of  the  bank.  Both  internal  and  external  trainers  conduct  in-house  training programs  and  these  programs  are  continuously  updated  to  reflect  the  latest  development  in  the banking  as  well  as  information  technology  sector.  By  the  end  of  2010  increases  the  manpower strength increased to approx 1520 from 1050 at the end of the previous  year.

Marketing

The  Marketing  Department  is  responsible  for  the  coordination  of  all  marketing  activities of  the  Bank;  ensures  marketing  activities  are  in  compliance  with  state  and  federal  regulations; develops  various  marketing  concepts,  objectives,  materials,  advertisements,  programs,  press releases,  and  other  special  events  approved  by  senior  management  and  the  Board  of  Directors. The  department  provides  guidance  and  coordinates  implementation  efforts  with  respect  to  the installation of  new  or  existing  products  and  services.  The  Marketing  Department  is  also responsible  for  being the  primary contact  of  public  relations and  media  contacts, advertising,  and certain  business  development  activities  that  promote  the  spirit,  philosophy,  dedication,  and general direction of the Bank.

International Division

International Division develops  and  service  comprehensive  personal  financial relationships  within  affluent  International  target  market  through  a  professional  sales  effort  and identifies  qualified  International  potential  clients.  The  department  initiate  contacts  assess  need; present an  array  of  products  and  services,  and close sales.  This  department is  responsible  for  the management  and  total  servicing  of  the  international  client  relationship,  and  for  the  growth  and profitability of the largest, most complex and profitable relationships in the unit.

Credit

The  Credit  Division  is  responsible  for  gathering  and  analyzing  credit  information  on current and potential borrowers; determines the advisability of granting credit for diversified types of  loans  Duties  also  include  assisting  loan  officers  in  writing  loan  requests;  promoting  business for the  Bank by maintaining  good  customer  relations  and referring customers to  appropriate  staff for new services.

Audit & Internal Control

The Audit & Internal Control Department is responsible for developing, implementing and communicating Treasury Bank Audit’s vision, mission, goals and strategies. To ensure that critical business  and  regulatory  processes  are  in  place  and  working,  this  department  develops  and maintains  an  effective  relationship  with  business  partner  management,  helps  business  partners balance  their  business  strategy  with  appropriate  risk  management  controls  and  encourages business unit management to self-assess its business environment and develop action plans around ‘gaps’  that  could  impact  sound  risk  management  or  success  in  meeting  business  plans.  The division  also  ensures  that  staff  understands  and  is  appropriately  aligned  to  the  company’s objectives/values,  and  stay  abreast  to  tactics  employed  b y  Audit  and  the  business  units  they review.  Other  duties  include  assuring  that  adequate  resources  and  training  are  provided  to  staff, sufficient to ensure full compliance with all regulatory requirements.

Financial Control

This department  of  Bank Asia Ltd is  responsible  for  the  all  of the Bank’s fiscal operating results,  such  as cost  accounting, budgets, regulatory  agency and  government reports ensuring the safeguard  of  Bank assets. The Financial Control Department also counsels senior management  on fiscal  control  and  profitability;  prepares,  presents  and  interprets  financial  reports  to  senior management;  adheres  to  tax  laws  and  regulatory  compliance  to  properly  reflect  the  financial position of the Bank.

 Information & Communication Tech

The  Information  &  Communication  Department  is  responsible  for  the  Bank’s  electronic and  cash  management-based  products  and  services,  including  the  development,  deployment  and maintenance of Bank’s Internet  web site; assists account and business development  officers  in the sales of  related products and  services.  The  department  also  performs direct  supervisory  duties  of department  staff;  coordinates  staff  for  coverage  in  all  related  areas  of  the  department;  ensures various department activities or projects run smoothly and efficiently.

Overall Activities of Bank Asia Limited

The functions of commercial Banks are now wide and varied. However, the functions of Commercial Banks may broadly be classified under the following two categories-

A.  Primary Functions; and

 B.  Secondary Functions.

Primary Functions:

The  primary  functions  of  Bank  Asia  Limited  are  same  as  other  Commercial  Banks.  These functions includes-

                                                        I.              Accepts deposits

                                                      II.              Lends  money;

                                                    III.              Creates credit.

                                                    IV.              Creates medium of exchange

Secondary Functions:

Modern commercial Banks  like  Bank  Asia,  besides  performing  the functions, cover  a wide range of  financial  and  non-financial  services  to  meet  the  growing  needs  of  the  time.  Some of these services are available only to the customers while others are available to the public in general. The subsidiary services provided by a modern banker may be classified into following three groups-

                                                              i.      Agency Services

                                                            ii.      Generally Utility Services

                                                          iii.      Trade Service Business

Operations

The  main  purpose  of  the  operation  department  is  to  maintain  and  ensure  free  flow  the overall activities. To  respond  to  the  needs  of  the  economy  Bank  Asia  has  dedicated  their  services  to  the Nation through  financial participation in  all segments  of  the economy.  Within a very short period this bank has proved its strong presence in all sort of banking activities ranging from collection of deposits to industrial financing, from trade financing to channeling inward remittances.

Corporate Culture 

Employees of Bank Asia share certain common values, which helps to create Bank Asia culture.

• The client comes first.
• Search for professional excellence.
• Openness to new ideas & new methods to encourage creativity.
• Quick decision-making.
• Flexibility and prompt response.
• A sense of professional ethics.

Objectives & Goals

• To earn and maintain CAMEL rating strong.
• To establish relationship banking and service quality through development of Strategic Marketing Plan.
• To remain one of the best banks in Bangladesh in terms of profitability and asset quality.
• To introduce fully automated systems through integration of Information Technology.
• To ensure an adequate rate of return on investment.
• To keep risk position at  an acceptable range (including any  off balance  sheet risks)
• To maintain adequate liquidity to meet maturity obligations and commitments.
• To maintain a healthy growth of business with desired image.
• To maintain adequate control systems and transparency in procedures.
• To  develop  and  retain  a  quality  work  force  through  an  effective  Human  Resources Management System.
• To ensure optimum utilization of all available resources.
• To pursue an effective system of Management by ensuring compliance to ethical norms, transparency and accountability at all levels.

 Strategies                     

• To  manage  and  operate  the  bank  in  the  most  efficient  manner  to  enhance  financial performance and to control cost  of fund.
• To  strive  for  customer  satisfaction  through  quality  control  and  delivery  of  timely     services.
• To  identify  customers  credits  and  other  banking  needs  and  monitor  their perception towards  our performance in meeting those requirements.
• To revive and update policies, procedures and practices to enhance the ability to extend better services to customers.
• To  train  and  develop  all  employees  and  provide  them  adequate  resources  so  that customer’s  needs  can be responsibly addressed.
• To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employees in a timely fashion.
• To  cultivate  a  working  environment  that  fosters  positive  motivation  for  improved performance.
• To diversify portfolio both in the retail and wholesale market.
• To  increase  direct  contact  with  customers  in  order  to  cultivate  a  closer  relationship between the bank and its  customers.

 Shareholders

To safeguard shareholders’ investment and to create and add economic value.”

Customers

“To  satisfy  the  unique  needs  of  customers  b y  offering  safety  to  their  trust,  provide innovation  and  flexibility  in  delivered  service,  which  creates  value  for  their  business  thereby enhancing  their  commercial  success  and  in  turn,  Banks.  To  take  due  care  and  diligence  in ensuring  that  regulatory  norms  are  not  breached  in  extending  service  to  customers  and  other constituents.”

Employees

To  recognize  that  employees  are  greatest  asset  and  to  ensure  that  they  have  a  safe  and conducive  working environment  with  equitable and  competitive  terms  and conditions  of service. The Bank promotes a culture of trust, and the development and best of human talent and resource.

Business partners

“To cultivate meaningful, mutually beneficial and successful long-term relationship with bank’s partners, suppliers and contractors based on trust and understanding.”

Community

“To  be  a  responsible  corporate  citizen  and  conduct  business  in  a  manner  that  promotes sustainable  development  for  both  Bank  Asia  Ltd  and  the community it  serves.  This  involves full compliance  with  local  laws  and  regulatory  authorities,  and  giving  due  consideration  to  cultural, social and environmental impact in all commercial decisions.”

Schemes offered by Bank Asia Limited

• Monthly Benefit Scheme
• Monthly Saving Scheme
• Education Saving Scheme
• Marriage Deposit Scheme
• Double Benefit Scheme
• Triple Growth Saving Scheme
• Fixed Deposit Receipt

Monthly Savings Scheme (MSS)

Savings is the best friend in bad days. Small savings can build up a prosperous future. Savings      can meet up any emergences.  BAL has  introduced  Monthly  Savings  Scheme  (MSS) that allows saving  on  a  monthly  basis  and  getting  a  handsome  return  upon  maturity.  If anyone wants to build up a significant savings to carry out you’re cherished Dream, BAL MSS is the right solution.

Monthly Benefit Scheme (MBS)

 It has introduced Monthly Benefit Scheme  (MBS)  for  the  prudent persons having  ready  cash      and  desiring  to  have  fixed  income  on  monthly  basis  out  of  it  without taking  risk  of  loss  and  without  enchasing  the  principal  amount.  This scheme offers highest return with zero risk.  Everyone  can  plan  your  monthly  expenditure  with  the  certain  monthly income under  the     scheme.

Double/Triple Benefit Deposit Scheme

For  people  who  have  cash  flow  at  this  moment  and  want  to  get  it  doubled/tripled quickly  BAL has  introduced Double/Triple  Growth  Deposit Scheme that offers  to  make  double/triple money within 6(six) years and 9.5 (nine and half) years respectively resulting a high rate of interest.

Marriage Deposit Scheme

Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort  for  gradual      building  of  fund  as  per  their  capacity  to  meet  the  matrimonial  expense of their children specially  daughters.  Parents  get  relief  and  can  have  peace  of  mind  if  they  can  arrange  the necessary  fund  for  marriage  of  their  children, no  matter  whether they survive  or  not till    the marriage  occasion. It  can  be  a  great  help  to  the  parents  if  there  is  any  scope  of  deposit of a modest amount as  per their  financial capacity,  which  groves  very  fast at high  rate of interest yielding sizeable

With this  view BankAsia  has  introduced  Marriage  Deposit  Scheme,  which  offers  you  an opportunity  to  build – up  your  cherished – fund  by  monthly  deposit of serial,  amount  at  your affordable capacity.

Education Savings Scheme

Education is a basic need of every citizen.  Every parent wants to impart proper education to their children. Education is the prerequisite for socioeconomic development of the country. As yet,  there  is  no  arrangement  of  free  education  to  the  citizens  from  the  government  level.  As such,  there  should prearrangement  of  fund  to  ensure  higher  educations  the  children. Otherwise  higher education  may  be  hindered  due  to  change  of  economic  condition,  income  of the  parents  at  the  future  time  when  higher  education  shall  be  required.  Today’s higher education is becoming expired day by day. Parents  can  get  relief  and can  have peace of mind  if they  can  arrange  the  necessary  fund  for  higher  education  of  their  children.  As  such,  JBI,  has introduced’ Education  Savings  Scheme’ which  offers  you  an  opportunity  to  build  up  your cherished  fund’  by  monthly  deposit  of  small  amount  it  at  your  affordable  capacity  or  initial lump  sum  deposit  to  yield  handsome  amount  on  a  future  date  to  meet  the  educational expenses.  Under  this  Scheme  you  have  the  different  attractive  options  to  avail  the  future benefit i.e. withdrawal  of the  total amount  accumulated in lump sum or withdrawing monthly

benefit  to  meet  educational  expense  keeping  die  principal  amount  intact  or  to  withdraw  both principal and accumulated  profit  monthly for a certain period.

Products of Bank Asia

Deposits

Types of Deposit Accounts-

• Current Deposits
• Savings Bank Deposits
• Fixed Deposits (Term Deposit)
• Short Term Deposits
• Monthly Term Deposits
• Any other deposits as may be approved/ advised by Head Office.

Procedures of Accounting Opening

Opening  account  with  a  bank  is  the  way  of  creating  a  banker  customer relationship.  In other words, it is a contract between banker and customer.  With this contract, bankers enter      into certain obligations and responsibilities. Proper  introduction  serves  as  a  precaution  against  fraud  and  forgeries  and  safeguard  against inadvertent overdraft to  bank.  Obtaining proper introduction may absolve the banker from the charges of negligence for conversion.  So, while opening a new account, emphasis would be given without exception to introductory reference and inquiry. The following instruction to be

 Followed while opening account: –

• Introduction of Account to be obtained from a respectable client acceptable to bank.
• The  introduction  shall  be  obtained  in  writing  in  the  respective  column  of  Account opening form.
• For  opening  savings  bank  account  of  individual  either  singly  or  jointly,  passports  and identity cards may be accepted for introduction,  but subsequently proper introduction may  be  obtained.
• Introduction  of  Current  Account  by members  of the  staff  may  be  allowed  but  shall  be discouraged as far as  possible.
• Current  Account  shall  preferably  be  introduced  by  another  Current  Account  holder acceptable to  bank.
• Introduction of Account holder of other branch may be accepted with caution. In  that case  the  introducer’s  signature  must  be  verified  by  authorized  officer  of  that  branch and authenticated by a forwarding  letter.
• Photographs of account holder must be attested by the introducer.
• Letter of thanks be issued to introducer in Bank’s standard specimen.

Current Deposit Account

• A  Current  Deposit  Account  may  be  opened  by  individual,  firm,  company  and  club, association, body corporate etc.
• Funds in the Current Deposit Account is payable on demand.
• No interest is payable on balances of Current Deposit Accounts.
• Current  Deposit  Account  may  be  opened  with  a  minimum  initial  balance  of              Tk. 5,000/-
• Minimum balance to be maintained in the account is  Tk.1,  000/-
• Customer  willing to  open  Current Deposit  Account  shall fill up the  Account  Opening   Form  (AOF)  applicable  to  him/  her  and  Specimen  Signature  Card  (SS  Card).  The customer  will  sign  in  the  space  provided  under  “Yours  faithfully”  and  on  the specimen signature cards.
• In case of proprietorship and  partnership firms the relevant account  opening form is to  be  filled  in  and  signed  by  the  proprietor/  partner  in  their  individual  capacity  in the space  provided  under “Yours  faithfully”  and  on  the  specimen  signature  card  in their official capacity.
• In all other cases  including  companies etc. the  persons opening  the account  shall fill

in  the  relevant  Account  Opening  Form  and  sign  the  Form  in  the  space  provided     under “Yours faithfully” and in the specimen Signature Card in  their official capacity.

• Introduction of acceptable clients to be obtained as per guidelines.
• The  Manager’s  approval  for  opening  account  shall  be  obtained  by  the  concerned    staff member.
• Signatures of  the  account  holder  shall be  admitted  by  affixing  the  stamp  “Signature admitted”  and  signing  by  the  authorized  officer. The  introducer’s signature  shall  be verified by  affixing  the  stamp  “Signature  verified”  near  the  signature  by  authorized officer.
• Blank  space  of  the  Specimen  Signature  Card  should  be  closed  by  drawing  parallel lines.
• The  particulars  of  the  Account  Opening  Form  shall  be  entered  in  the  Account          Opened  and  Closed Register as per  sequence provided by  the  computer system.
• The  customer  shall  be  provided  with  Deposit  Slip  in  cooperating  the  Account           number  and  be  advised  to  make  the  initial  deposit  in  the  account.  The amount of   initial deposit shall be entered in the Account Opening Form.
• Cheque  Book  shall  be  issued  on  request  on  completion  of  all  formalities  including   initial  deposit.  Cheque  series  to  be  entered  in  the  Account  Opening  Form  at  the bottom right and authenticated by authorized officer.
• After  posting  of  all  particulars  of  the  account  including  cheque  series,  one authorized  officer shall  check/ verify  the same in the  computer screen  and record it in the form with  signature.
• Manager/  Authorized  Officer  shall  apply  sufficient  intelligence  and  common  sense    to  ascertain  genuineness  of  the  account  holder.  No account shall be opened without approval of the Manager.
• Clear  instruction  regarding  operation  of  the  account shall  be  noted  on  the  Account

Opening  Form  and  Specimen  Signature  Card  especially  in  respect  of  death  of            inability  of  the  account  holders,  or  the  person  operating  the  account. The account holder shall confirm the instructions under specimen signature.

• An indemnity shall be obtained from the customer if he/ she signs in language other than English/ Bengali.
• Illiterate persons shall be discouraged to open Current Account. If opened withdrawal shall be allowed on personal appearance of the account holder.
• The  account  opening  form  shall  be  sent  to  the  respective  computer  terminal  for    posting and S.S. Card shall be retained serially in the S.S. Card Box under custody of          cheque Passing Officer.
• One  of  the  photographs  of  the  Account  Holder  is  to  be  pasted  with  AOF  and          another  one with S.S. Card. AOF  to  be  retained  in serial order in  Pasting  File.
• A letter of thanks to be sent to the account holder as well as to the introducer.
• All  new  accounts  opened  during  the  day  shall  be  personally  checked  by  the            Manager  at the close  of business  of each day.
• Checking  officer  shall  particularly  see  the  introduction,  initial  deposit  in  cash  or       cheque,  nature  of  business  of  the  account  holder,  Trade  License,  Partnership  Deed/ Memorandum of Articles of Association, Resolution etc.
• Similar Accounts should be noted in the AOF and care should be taken while making        posting of transactions in such accounts.
• The  Computer  Program  used  by  bank  shall  provide  reference  of  clients.  Branch Manager must ensure that their computer system provides reference of client.
• Classified Deposit Ownership Program to be maintained in the Computer System for facilitating periodical returns to Bangladesh Bank.
• Bank shall provide  monthly  statement  of  account  to clients  as per  computer  system of  the  branch.
• If  minimum  balance  of  the account falls  below  Tk.2,000/-  once  during the  half-year, incidental charge will be recovered as per Head  Office Circular.
• Bank at its discretion may close any account with prior notice to the account holder.
• In  case  of  closure  of  account  by  the  account  holder,  branch  shall  recover  closing charges as  per schedule of charges.

 Savings Bank Deposit Account

• Savings  Bank  Account  may  be  opened  in  the  name  of  adult  individual  who  are mentally  sound  and also  jointly  in  the  names of two or  more  persons  payable  to either or both or all of them or to the survivor or survivors.
• Savings Bank Account may be opened in the name of a minor also. Saving Bank Account may be opened in the names of clubs, societies, association and similar institutions and even by government and semi- government offices.
• Account shall be opened with at least a minimum initial deposit of Tk.1,000/-
• Interest at the rates fixed by Head Office from time to time is applied half-yearly                    on the balances held on daily product basis.
• Not more  than  one account  is allowed  to  be opened  in  the  same  name.  But  this will  not  be  applicable  to  parents  willing  to  open  more  than  one  account  in his/ her name  in respect of each minor  child.
• Savings  Bank  Account shall not  be  allowed  to  be  overdrawn  under  any                          circumstances.
• Account opening formalities like Current Account should be followed.
• Savings Bank Account should not be allowed to be operated like Current Account.
• Not  more  than  25%  of  the  balance  can  be  withdrawn  without  7  days  notice.

Withdrawals in the account shall be allowed twice in a week.

• No interest shall be paid to such accounts in the month for violation of the above rules.
• Bank shall provide monthly-computerized statement of accounts to account holders instead of passbook.
• Bank  may  at  its  discretion  close  any  account  with  prior  notice  for  repeated return of cheques due to insufficient balance.

Bank may recover charges up to a maximum of Tk.100/- per instances of cheque return.

Short Term Deposit Account

Deposits held in this account are payable on short notice.  Normally corporate bodies, bank and financial organizations invest their funds temporarily. Now-a -days, private individuals having sound financial means also open this type of deposit accounts. The following rules shall apply-

• Deposits held in STD Account are payable in 7 (Seven) days notice.
• Cheque books may be issued to account holders for withdrawal of funds.
• Repeated withdrawal without notice shall be discouraged.
• Interest is payable on balance held on daily product basis as per computer program   used by bank.
• For opening STD Account, AOF used for Current Deposit Account shall be used. Other formalities are similar to Current Deposit Accounts.
• Minimum balance requirement for accruing interest is Tk.100, 000 (Taka one lac) only.

Fixed Deposit Account

• Fixed Deposit is neither transferable nor negotiable.
• Fixed Deposit Account may be opened by individuals, firms, companies, corporate body etc.
• Fixed  Deposit  Account  shall be  opened for  a  fixed  period  ranging from 3  months to 6 months or above  as determined by Head  Office from time to time.
• Rate of interest payable to Fixed Deposit Accounts shall be approved/ advised by Head   Office from time to time.
• Interest on deposits shall normally be payable on maturity along with principal.
•  Customers  may  however,  have  the  option  of  withdrawing  interest  accrued after      every six months provided that the account  is for  more than  24 months period.
• Interest ceases to accrue on overdue Fixed Deposit Account. Branch may, however, allow interest to exceptionally valued clients on deserving cases with concurrence of     Head Office.
• FDR  may  be  encased  before  maturity  on  written  request  of  the  depositor.  For        payment  of  interest,  branch  shall  follow  Head  Office  instruction  in  this  regard from time  to  time. In  case  of  FDR  in  joint  names,  written  consent  of  all  holders  shall  be obtained before premature encashment, irrespective of instruction provided for  operation of  the  account.
• Duplicate  FDR  may  be  issued  in  case  of  loss  of  FDR  reported  by  the  holder.  An indemnity  bond  executed  by  the  depositor(s)  shall  be  obtained  on  Bank’s standard  form.  A  remark  “DUPLICATE  ISSUED  IN  LIEU  OF  ORIGINAL  REPORTED LOST” is  to  be typed on top of the duplicate FDR. The original number should be used a comments to this effect be recorded in AOF, S.S.  Card and FD Issue Register.
• Extra care shall be taken in case duplicate FDR is proposed for lien to any bank.
• Each FDR of the same depositor will be treated as separate contract.
• Account  Opening  Form  for  Fixed  Deposit  Account  contains  relevant  columns  for mentioning  all  terms  including  rate  and  term  of  deposit  and  operational instruction. The  bottom  part  of  the  form  shall  be  used  as  credit  voucher  for  the deposit.           Specimen  Signature  Card  duly  signed  by  the  depositor  to  be  obtained with clear       instruction for operation of the  account.
• Nominee  form  may be  obtained  if the  depositor  desires to  nominate  anybody  to receive  the  proceeds  of  his  account  in  case  of  his  death.  Nominee’s Signature and one copy of photograph duly attested by the depositor to be obtained.
• The  signature  of  the  depositor  is  to  be  admitted  by  authorized  officer  both  in AOF and S.S. Card.
• Particulars  of  the  account  shall  be  entered  in  the  FD  Account  Opening  Register and  a  control  number  be  allotted  in  computer  sequence  order  with  oblique against the  printed  number  of  FDR.  The complete number shall be quoted/ mentioned in all    references.
• On  completion  of  all  formalities,  including  deposit  of  fund,  FDR  shall  be  issued and  signed  by  two  authorized  officers.  The  FDR  shall  be  delivered  to  depositor against  acknowledgement on  the  reverse of the  counter foil.
• The AOF will be retained in file and the S.S. Card shall be kept in S.S. Card Box under         custody of the concerned authorized officer.
• The  particulars  of  the  account  shall  be  posted  in  the  computer  system  on                 completion  of  all  formalities  including  receipt  of  deposit.  One  authorized  officer       shall  check/verify  the  particulars  in  the  computer  screen  and  record  his comments on  the  AOF to this effect with  signature.
• Renewal  of  Fixed  Deposit  Account  shall  be  allowed  on  written  request  of  the depositor,  if  no  intimation  is  received,  the  account  shall  be  deemed  to  have renewed under the existing terms and conditions automatically.
• FDR can be accepted as security against credit facility.
• Offer of special interest rate on deposits is subject to Head Office approval.

The following documents duly completed shall be obtained from the customer at the time of opening different types of accounts as applicable:

Individual/ joint

• Account opening form as applicable duly filled in.
• Specimen Signature Card.
• Two photographs duly attested by introducer.
• Nominee Form (if nomination given by the account holder).
• Mandate  or  Authority  Form  (if  a  third  person  is  authorized  to  operate  the account)

Proprietorship Firm

• Account Opening Form.
• Specimen Signature Card.
• Copy of Trade  License
• Two photographs duly attested by introducer.
• Proprietorship Rubber Stamp against all signatures of the proprietor.

Partnership Concern

• Account Opening Form.
• Specimen Signature Card.
• Copy of Trade  License
• Partnerships Deed
• Two photographs of each partner duly attested by introducer.
• Partnership  Rubber  Stamp  against  all  signatures  of  partners  operating  the accounts.
• Partnership letter.

Private Limited Company

• Account Opening Form.
• Specimen Signature Card.
• Copy of Trade License.
• Copy of Memorandum  and Articles  of Association duly  attested  by the  Managing
• Director/ Chairman of the Co.
• Certificate of Incorporation.
• List of Director as per return of Joint Stock Company with signature.
• Resolution of the Board for opening account with the bank.
• Photographs of each of the authorized signatories.

Public Limited Company

• Account Opening Form.
• Specimen Signature Card.
• Copy of Trade License.
• Photograph of Directors and account operators other than Director.
• Certified copy of Memorandum and Articles of Association.
• Certificate of commencement of business.
• List of Directors as per returns of Joint Stock Company with their signature. Resolution of the Board for opening account with the Bank.
• Certification of incorporation.

Clubs/ Association/ Society etc. (Non-Trading Concerns)

• Account opening Form for current account or SB accounts.
• Specimen Signature Card
• Certified copy of Bye laws/ constitution of the organization.
• List  of  the  Executives  of  Managing  Committee  with  their  signature  and  present and permanent address.
• Resolution of the Committee for opening account with the bank.
• Photographs of each operator of the account.

Corporation/ Autonomous Bodies/ Govt. Organization

• Account Opening Form as applicable.
• Specimen Signature Card.
• Copy of the Act or Ordinance Showing authority to open account.
• Letter from the authorized persons in absence  of the Board
• Account Of Constituted Attorney
• Account Opening Form (As applicable)
• Specimen Signature Card

Power of Attorney 

A  copy  of  Power  of  Attorney  shall  be  taken  and  entered  in  the  Power  of  Attorney  Register  in serial order.  The serial number is to be noted along with Banks name on the Power of        Attorney. Original may be returned and the copy to be attached with Account Opening Form.

Instructions for Handling Account Holders

Individual Account

Most of the accounts of a branch are individual.  As  such  they  deserve regular  attention of  the members  of  the staff  of  a  branch.  An individual  account holder may nominate his near  and  dear  ones  to  inherit  his  deposit  in  case  of  his  death.  He/ she can also give mandate or  authority to operate his account in his short absence.

Joint Account

• At  the  time  of  opening  accounts  in  the name  of  two  or  more  persons,  clear  and specific  instructions  shall  be  obtained  regarding  operation  of  the  account  and payment  of  balance  to  the  survivor(s)  or  surviving  members  in  the  event  of death  of  one or more  joint account   holders. The  instructions  as  far  as  possible  shall  be  obtained  in  the  handwriting  of  the parties concerned,  under the signatures of all the joint account  holders.
• Instructions  in  the  either  or  Survivorship  form  may  be  taken  in  the  following manner.
• If  the  account  is  opened  in  the  name  of  two  persons  instruction  may  be:  Either or Survivor or singly  or jointly.
• If  the account is  in the  names  of more  than  two  persons  instructions may be:  By       either or Survivor singly or by any two or more of them or by all of them. In case of death of  any  joint  account  holders,  if  the  specific  instructions  are either a or  b,  the             balance will be payable to the survivor(s).
• In  the  absence  of  specific  instructions  in  the  “Either  or  Survivorship”  form, balance of  the  joint  account  will  be  payable  to  the  survivors  and  the  legal representatives  of  the  deceased joint account holders.

In  the  event  of  any  of  the  Joint  Account  holders  becoming  bankrupts,  all operation  in  the  joint  account shall  be  stopped  until  fresh  instructions  are  given by  the  remaining  solvent  account  holders  jointly  under  their  signature  and  the official assignee.

In the  event  of  death of any  joint account holders,  the  survivor  or  survivors  shall be  requested  to  close  the  old  account  and  open  a  new  account  in  the  name  of surviving account      holders.

No overdraft  shall be allowed  in  a joint account unless  it  is operated  jointly by  all the  parties  of  the  account  and  charge  documents  in  respect  of  advance  are  also signed by all of them.  Account  payee  cheque  in  the  name  of  one  of  the  account  holders  may  be deposited in their joint name account for collection.

 Account of Proprietorship Concern

While  opening  accounts  in  the  names  of  proprietorship  concern  care  should  be exercised  that  the  person  opening  account  is  the  proprietor  of  the  firm. Obtaining  trade  license  issued  by  Municipal  Authority/  Union  Parishad  can  be  a proof.  On  specific  instruction  the  account  may  be  operated  by  persons authorized by the proprietor.

In case of death of proprietor, all operations in the account shall be stopped.

Procedure laid down in Para (r) may be followed. On the death of the proprietor authority given by him ceases and the authority holder can not be allowed to operate the account.

Accounts of Partnership Firm

A  partnership  account  shall  be  allowed  to  be  opened  and  operated  by  any  one partner  of the  firm  under  his  signature  provided  a  partnership  letter  has  been signed by all the partners of  the  firm  in their individual capacity. Partnership Deed or Partnership Letter should be thoroughly studied to know the names and address of all the partners. Nature of business,     names  of  partners authorized  to  operate  the  account  including  authority  to  draw,  endorse, accept bills,  mortgage  and  sell  property  belonging to  firm.  It  should  also  be  ascertained     about  the position  of the  firm  on retirement  of  any  partner,  death or  insolvency of  any partner.  In  case  of  death  of  partner,  if  the  deceased  partner  was  operating  the  account singly the  balance  shall  be  paid  to  the  heirs  of  the  deceased  and  the  surviving partners  as  per  orders  of  the  Court  agreement  or  arrived  at  between  the surviving partners  and heirs of the deceased. In the later case, the recipient shall execute indemnity bond as explained in Para       regarding deceased account. If  a  partnership  Deed  is  submitted  the   same  should  be  accepted  and  recorded with the     bank.

In  case  of  death  of  a  partner  who  was  not  operating  the  account  the  surviving partners  shall  be  advised  to  close  the  partnership  account  and  open  a  new account. An  operating  partner  may  give  mandate  to  a  third  person  to  operate  the  account  in place of him.

 Accounts of Joint Stock Companies 

A Joint Stock Company is a separate legal entity.  The shareholders may die or become insolvent. The  company  shall  continue  to  exist  unless  the  number  of share  holders falls below the minimum number of members. The  minimum  number  of  members  is  two  and  maximum  is  50  excluding employees and ex-employees. Private Limited Company cannot invite public to not require issuing a prospect us. Right to           transfer share is restricted. It can commence business as soon as it receives certificate of incorporation.  It need not obtain “Certificate   of Commencement of Business”.

Public Limited Company must have minimum of seven members. There is no restriction on  maximum  number  though  it  is  always  advisable  to  keep  it  within manageable  limit.  A public limited Company raises its capital generally through public issues and therefore,

A prospectus is required to be issued. Share of public Limited Company can be transferred.

 It however cannot commence business until and unless “Certificate of Commencement of Business’’ has been obtained. Approval  of  Head  Office  to  be  obtained  for  opening  account  obtained. Approval  of  Head  Office  to  be  obtained  for  opening  account  in  the  name  of  a  New Public Limited Company  for the deposit of share money. No cheque  book  shall  be issued  or  withdrawals  allowed  from the account of  the newly floated companies unless a certified   copy of  commencement of business is produced by the company. If  the  company  fails  to   produce  such certificate  as  mentioned  at  para  (v),  the deposits  accepted  by  the  bank on their behalf

representing  share  money, received  in  anticipation  of  the  commencement  of  business,        shall  be  refunded  in lump  sum  to  the  Directors  of  the  company  obtaining  a   joint  receipt  from  all  of them  subject  to  prior approval  of   Head Office.

Account  of  Limited  Companies  operated  by  the  Managing  Agents  of  the company  shall not  be  opened  or  allowed  to  be  operated  unless  a  certified  copy of  the  Managing  Agent’s,      Agreement  is  obtained  and  the  authority  of  the persons  signing  on  behalf  of  the  firm  or  company  or  the  Managing  Agent  is verified.

No  advance  shall  be  allowed  to  any  company  unless  it  is  ascertained  that Memorandum  and  Articles  of  Association  of  the  Company  authorize  the company  in  that  behalf.  And  it  is  authorized  to  secure  the  advance  against securities offered by it.

 Accounts of Clubs/ Societies/ Associations

No overdraft shall be allowed in the accounts of clubs.  Societies and Associations without prior approval of Head Office.

No  cheque  drawn  on  the  accounts  of  Clubs  and  Societies  shall  be  collected  for credit to   private account of the office bearers of the societies and clubs In  case  of  transfer  or  death  of  any  of  the  office  bearer  of  the  club/  society operating the  account,  all  operation  shall be stopped until  such  time that a fresh resolution  is  passed  in      future  by  The  Executive/  Managing  Committee determining  the  method  of  its  operation  and delegation  of  powers  to  the  new office bears, and advised to the Bank.

GENERAL BANKING

General banking is the starting point of all the banking operations. It is the department which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services everyday, general is also known as ‘retail banking.’

General Banking

The function of general banking is directly related to client’s service. The banking service starts from here.   To be a customer, a person has to go there.  The general banking department performs mainly following tasks.

1. Cash Management

2. Customer Service

3. Accounts Department

Cash Management

Bank’s  one of  the  main  function  is  the  collection  of deposit  from  public.  Bank’s goodwill to the mass people heavily depends on quick and prompt service of this department.

Cash Department and its Structure

– Strong Room /Vault- Under dual Controlled

-Cash keeping safe vault that is under dual Controlled

– Well protected safe area

– Cash in charge

– Teller

Cash  department  normally  in  a  separate  enclosure  where  there  is  no  free  access  of  the  staff  of other department and outsiders. This department is directly dealing with clients.

Register and records of cash department

– Daily cash balance book

– Vault key register

– Cash transit register

– Teller’s cash proof

Functions of cash department

Following points have to take into consideration for receiving cash

1. Deposit slip is properly filled in

2. Denomination of cash to be mentioned in the deposit slip

3. The of the account and account number is correct

4. Words and figure is correct

5. Both the copy of deposit slip is in order

6. Depositor signature is in the slip

7. Depositor slip must be signed b y the teller and counter signed by the cash in charge

8. Receive seal in the slip

9. Carbon copy of the deposit slip to be hand over to the depositor and original copy retain by the bank

Following points have to take into consideration for payment of a cheque:

1.Date (stale or post dated)

2. Words and figure of the cheque is identical

3. Crossed or open cheque and bearer or order cheque

4. Genuineness of signature is verified

5. Balance of the account is available

6. Cheque leaf is genuine

7. Legal bar e.g. notice of death, Garnishee order

8. Stop payment.

9. Account is debited and payment has to be made in good faith and without negligence.

10. Denomination is mentioned in the reverse side of the cheque.

 Others functions of cash department

– Receiving the Grameen Phone, Citycell, Rangs tel bill

– Change of mutilated notes as per guide line of the Bangladesh Bank

– Receiving admission fee of different universities as per arrangement

It is mentionable that there is a vault limit in each and every branch. Excess amount have to send to the principal branch.  Vault  limit  amount  as  well  as  counter  limit  amount  must  be  insured policy.

  Customer Service Department

This department is comparatively a new department in the contemporary banks. The main reason  to  set  up  Customer  service  department  is  to  maintain  interaction  with  the  existing  and potential  customers.  Customer service determines the level of long-term success in business.  It helps  a  company  in  maintaining  current  customers,  as  well  as  gaining  new  customers.  I have worked in customer service department of Shantinagar Branch.  Form this department I have learnt

– To retain good relation with the customer a banker should careful about the following things–

– Customers are the reason for the work

– Warm and friendly responses

– Customer wants to feel important

– Listening the customer requirements

-Apologize to him for doing any mistake

– Say “No” positively

– Keeping cool when customer gets hot

Although  bank  is always  customer  focused  and try  to  gain new prospective customers,  one more thing  should  be  kept  in  mind,  which  is  the  Money  Laundering  Case.  As  a result  of  money laundering activities  in Bangladesh,  the  government  is  annually losing a  huge  sum of revenue.  At the same time the laundering activity is distorting the market mechanism & competitive economy in the country.  In  order  to  curb  down  money  laundering  activities,  Bangladesh  bank  now  a  day enforces some additional  rules  in  case  of  opening new account.  As  a responsible scheduled  bank Bank  Asia’s  officials  also  tactfully  investigate  any  possible  presence  of  money  laundering  case while  dealing  customers  in  the  CSD department.  Officials have been trained to trace out money laundering cases.  Anyway,  during  my  internship  I  could  trace  the  following  key  functions  that  are done in CSD.-

Key Functions:

Before creating a customer relationship a primary level screening should be accomplished

• Opening of new account or close of account
• Transfer of account
• Selling newly introduced bank products to the existing client or new client
• Counseling
• Up to date existing customer information
• Issue ATM card
• Issue Pay order

The Customer Service Department is responsible to promote the following products and services of the bank.

 Inter Branch Transfer of Account

In case of transfer of Savings or Current account to another branch, a letter of request should be obtained and action be taken after verification of the signature and taking proper approval of the Manager. The request of the account holder desiring the transfer of the account shall be taken an application.

• When  the  application  is  received  Manager  of  the  branch  will  check up the  same     and   if found in order will approve  transfer  of  the account. The relative specimen signature  cards  and  account  opening  form  shall  then  be  taken  out  from  file  for      transfer  by the concerned department.
• The following entries shall be passed by the branch transferring the account.

Debit   : Party’s account.

Credit: Bank Asia Ltd. General Account {Transferee branch (IBCA to be issued)}.

• The transferring branch should not recover any charges from the account holder for          transfer of the account.
• The  forwarding  letter  as  per  the  following  specimen  shall  be  singed  by  the Manager.
• At  the  time  of transferring  the account the  branch  may  retain  photocopy  of  AOF At the  time  of transferring  the account the  branch  may  retain  photocopy  of  AOF and    SS Card together the application and preserve  in Account transfer  file.
• Entries  shall  be  made  in  the  Account  opened  and  Closed  Register  and  a  note  to    this  effect  “Account  Transferred  to  …………..  Branch on…………. shall be made therein.
• The  Account  Opening  Form,  SS  Card  and  the  IBCA  shall  be  dispatched   under cover the  forwarding  letter  as  per  specimen  to  the  transferred  branch  under registered   A/D/  Courier  Mail.
• Ordinarily a newly opened account should not be transferred to another branch. The       holder should better be advised to close the account.
• It  must  be  carefully  noted  that  no  overdraft,  cash  credit,  demand  loans  or  any  account  representing  party’s  liability  or  obligation  shall  be  transferred from one branch to another without prior  Head Office  approval.
• Measures to be taken by the Transferred Branch.

• The  transferred  branch  sends  a  letter  of  acknowledgement  to  the  transferee branch on receipt of the papers/  documents of  the  account.
• All  the  enclosures  to  be  checked  and  verified  in  terms of number and contents.
• Intimation  shall  be  sent  to  the  account  holder  by  post/  courier  mail        requesting  him  to  call  on  the  manager  with  the  intimation  letter sent to him.
• A  new  account  number  shall  be  allocated  and  IBCA  is  responded  in  the following manner.

  Debit   :  Bank Asia General Account (Transferee Branch).

Credit   :  New Account (Under advice to the holder).

• New  cheque  book  against  the  account  opened  shall  not  be  issued to the account  holder unless

• The Local Address of the party is properly tallied with the same mentioned in the transfer-forwarding letter.
• The party calls on personally and signs the cheque requisition slip with acknowledgement.

• Fresh Set of Account Opening Form and SS Card with fresh introduction are obtained and formalities completed as required for opening Account.

 Issuance of Cheque Books

General Service Division of Head Office will supply required Cheque Books to branches against their requisition from time to time. On receipt of these cheque books/ other security stationery, the branch shall record the stock in the Security Stationery Stock Register. While recording the stock, the Prefix number shall invariably be mentioned.

• A  few  Cheque  Books  required  for  current  consumption  of  the  Deposit Department  shall  be  taken  out  from  the  main  stock  under  control  of  an authorized  officer. The concerned  issuing  officer  will keep these cheque  books in a  box  under  lock  and  key  and  issue  the  same  to  the  clients  during  the  day. The Cheque Books will be entered  in the Cheque Book Issue Register and be issued to clients against their acknowledge-ment in the register.
• Separate folios will be opened in the Cheque Book issue Register for CD/ SB/ STD account cheque books.
• When  a  cheque  book is  required  by a  new  customer,  the  cheque  requisition slip

pasted  on  top  of  each  cheque  book  is  to  be  got  signed  by  him. The officer  responsible for issuing cheque book  shall  get the  signature of the account holder            verified from  officer  incharge  of  the  Deposit  Department  and  issue  the cheque book to the customer  after putting his initial in the cage of cheque series subject to the condition  that  account  opening  form  is  complete  in  all  respects and otherwise           in-order.

• The requisition slip shall be sent to the respective Computer Terminal for posting in the    respective account.
• All  subsequent  Cheque  Books  shall  be  issued  against  Cheque  Requisition  Slips

extracted  from the  previous cheque books issued to the  customer, However, the             requisition  slip  pasted  with  subsequent  cheque  book  on  its  first  page  shall  be         destroyed.

• The  cheque  requisition  slip  duly  filled  in  by  the  customer  shall  be  forwarded  to      cheque  posting Terminal to ascertain:
  • The average balance maintained by the customer.
  • Whether previous cheque leaves are properly consumed.
  • Cheques are not frequently returned for insufficient funds in the account.
  • Payment of Cheque is not frequently stopped.
  • The manner in which the account is operated.
  • The account is not dormant.

If  any  of  the  defects  is  noticed  by  posting  officer,  he/  she  shall  make  remark  on  the requisition  slip  and  forward  it  to  Cancellation  Officer  who  will  decide  whether  cheque book should  be  issued to the customer.

• In  cases,  where  the  account  is  found  in  order  and  the  party  is  known,  the cancellation  officer  shall  verify  the  signature  on  the  slip  and  send  it  back  to cheque  book    issuing  officer for issuance of the same.
• In case of a Dormant Account, the party shall call on the Manager personally for   identification purpose. The Manager  on  being  satisfied  about  the  bonafides  of the     applicant shall  allow  issuance of  cheque book.
• In case of slightest difference in signature or suspicion aroused about the bonafides of the person presenting the cheque requisition slip, proper inquiries shall be made by    contacting the account holder.  The officer must be satisfied before finally issuing the        cheque book.
• In  case  where  requisition  slip  extracted  from  a  previous  cheque  book  is  not

presented,  every  possible  care  shall  be  exercised  to  establish  the  bonafides  of

the  case,  particularly  when  address  of  a  constituent  has  been  recently  changed and/ or a simultaneous  request to change  the  address is made.

• If  the  cheque  book/  cheque  requisition  slip is  reported  lost,  the  branch  shall  take extra care  in issuing fresh  cheque book and take the following extra steps :
  • An  Indemnity  on  bank’s  standard  form  shall  be  obtained  from  the  client counter  signed  by  another  customer  of  the  branch  having  reasonable      balance  in the account.
  • Stop  payment  shall  be  made  for  the  unutilized  cheque  leaves  (Detailed   procedure in relevant chapter).
  • On  completion  of  the  formalities,  fresh  cheque  book  shall  be  issued  to   the client.  The client shall personally receive the cheque book against               acknowledgement.
  • If  the  cheque  book  is  issued  through  bearer,  his  signature  must  be  attested  by the account  holder  on  the  request  letter.  The  requisition  will  however  be  filled in/        signed  by  the  account  holder.  The  bearer  will  receive  the  cheque  book against  his      acknowledgement  on the  reverse of  requisition slip  and Cheque Book Issued  Register.  The party’s acknowledgement may be obtained by sending him a letter through bearer.
  • The issuance of the cheque book will be processed as  under:
    • It  should  be  ensured  that  all  the  leaves  and  blank  requisition  slip are intact and the printed serial numbers are in- order.
    • The  name  and  account  number  of  the  customer  shall  be  written  in   the cheque books cover and the cheque requisition slip.
    • The account number  shall  be affixed  on all the  leaves of the  cheque      book including  the  cheque  requisition  slip  under  the  signature  of  the  issuing officer, whose signature should  be  recorded in  the deposit   dept.
    • Cheque  Books  shall  be  delivered  to  the  customer  over  the  counter  after

obtaining  his  acknowledgement  in  the  cheque  requisition  slip  as  well  as  cheque      book issue register.

• In  special  circumstances,  cheque  book  may  be  delivered  through  bank messenger.  But in that case similar acknowledgement or subsequent confirmation shall be   obtained from the client.
• Cheque Book sent by post  shall  be  dispatched to  client  under  cover  of a  latter  in a

sealed envelope under Registered  A/D.  The client shall be asked to confirm receipt of

              the cheque book.  The A/D on return together with the confirmation is tagged with the  requisition slip.

• The  cheque  requisition  slips  against  which  cheque  books  have  been  issued  shall be stitched together with vouchers of the day.
• At the close of the day, the Security Box containing the cheque books shall be placed in    safe or inside the Strong Room under the supervision of the authorized officers.

Stop Payment Order and their Revocation

Instruction  for  stopping  payment  of  any  cheque  shall  be  obtained  from  the  account  holder  in writing. If  stop  payment  instructions  are  received  over  telephone  or  Telex  a    provisional  note  in respect  thereof  shall  be  kept  with  cancellation  officer,  pending  receipt  of  written instructions from the account  holder.  Should the cheque be presented in the mean time, the same should be returned with objection “drawers confirmation required”. The  date  and  time  on  which  those  instructions  received  shall  be  marked  on  the  letter      and signed by an authorized officer. The  signature  of  the  account  holder  shall  be  verified  on  the  letter  and  accordingly  the      cancellation  officer/  posting  officer  will  be  asked  to  insert  the  cheque  number  and  stop    payment in the computer terminal. Meanwhile  if  the  cheque  is  already  paid  the  account

holder shall  be  informed immediately.  An acknowledgement Memo in Banks printed form may be issued to the account holder as to the actions regarding stop payment.

The  stop  payment  letters  received  from  the  party  shall  be  filed  in  the  “stop  payment file”.

When  a  stopped  cheque  is  presented  for  payment,  the  remark  “Payment  Stopped  by         drawer  should  be  written  in  bold  letter  in  red  ink  across  the  face  thereof  and  returned    to the payee with  return memo under usual manner. Revocation  instruction  regarding  “Stop   Payment”  shall  be  obtained  from  the  account holders  in  writing.  The  signature  of  the  account  holder  shall  be  verified  with  the signature on  the  previous letter.

The  Stop  Payment  instruction  shall  be  revoked  from  the  account  by  withdrawing  the         cheque  number  from  computer  system  and  note  to  this  effect  shall  be  made  on  the         cheque  number  from  computer  system  and  note  to  this  effect  shall  be  made  on  the The  revocation  letter  shall  be  filed  with  the  previous  letter  which  contained  “Stop Payment” instructions.

The  revocation  instruction  shall  be  acknowledged  by  sending  a  letter  to  the  account holder.

Accounts Department

Account department is called as the nerve center of the bank. In banking business, many transactions are everyday and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in assign vouchers or wrong entries or fraud or forgery. This department is called as Account Department.

Besides the above, the bank has to prepare some internal statements as well as some statutory statements which to be submitted to the central bank. Account Department prepares these statements also. The department has to submit some statements to the head office, which is also consolidated by the head office later on. The tasks of the department may be seen in two different angles.

Daily Tasks: 

The routine daily tasks of the account department are as follows:

”   First task of accounts department is to open the server.

”   Posting the transaction in the cashbook.

”   Properly party account interest checking and follow up.

”   Preparing the daily position of the branch comparing of the deposit and cash.

”   Preparing the daily statement of affairs showing all the assets and liability of the branch as per.

”   Making payment of all the expenses of the branch.

”   General ledger and subsidiary ledger separately.

”   daily voucher properly recorded, maintained, checking and also register recorded.

”   Daily cash position must match will computer entries and checking authorized signature.

”   Different deposit account interest, payment account, closing account charges realize and interest calculation etc.

”   Recording inter-branch fund transfer and providing accounting treatment in this regard.

”   Preparation of statement or weekly financial statement.

”   Bank Asia general account calculation.

”   One of the important task of Accounts department is daily end and day open in the computer.

Periodical Tasks :

The routine periodical task performed by the department are as follows-

”   Preparing bill of month house rent, electric bill, telephone bill, interior decorator bill and security guard bill etc.

”   Monthly profit & loss account prepare.

”   Preparing the monthly salary statements for the employees.

”   Publishing the basis data of the branch.

”   Monthly SBS-1 (Schedule Bank Statistics) and quarterly SBS-2 statement prepare.

”   Preparing the weekly position for the branch, which is send to the Corporate Office to maintain Cash Reserve Requirement (CRR).

Demand Draft Issue Procedure

Step 2

Receive cash or transfer cheque from the cline.

Step 3

Preparation of DD by the officer carefully

Step 4

Preparation of IBCA form by crediting the responding branch.

Step5

DD and IBCA singed by the authorized officers and DD is given to the customer.

Step6

Posting in the general ledger and IBCA sent to the responding branch.

SWOT Analysis

Strength

• Stable Source of Funds
• Largest Portfolio Among PCBs
• Strong  Liquidity Position
• Low  Cost Fund
• Satisfactory Profitability

Weakness

• Marginal Capital Adequacy
• Lack of Strong Initiative to Explore Investment Opportunity through Research and           Marketing.
• IT & E-Banking Status Dose Not Match With Other Banks.

Opportunity

• Scope of Whole Sale Banking with NBFIs
• Increasing Awareness of Banking System
• Credit Card Business

Threats

• Increased Competition In  The Market For Quality Assets
• Supply Gap Of Foreign Currency
• Overall Liquidity Crisis In Money Market

The Performance of Customer Service Department of Bank Asia, Shantinagar Branch

Customer service department is a very important department of a service organization like Bank. As the department directly interacts with the customer so the main duty was to give proper service to the customer. And give a high level performance to satisfy the customer.

 To find out the second objective performance level of the customer service department of Bank Asia the following study has been done. To accomplish this objective, service quality dimension was used. The five dimension was used to assets the service quality of this department.

6.1 RELIABILITY

Reliability means delivering on promises as nowadays competition has been increased .So the expectation of the customer has also increased .Bank Asia has established itself as one of the fastest growing local private bank. So like other department of Bank Asia ’ customer  service department also give some promises  to the customer .Like : this department  promised to do the  certain work on time , whenever customer face any problem the department  will show a sincere interest in solving it, etc .

ANALYSIS

 From the survey in terms of reliability, that was done by questionnaire, by simple tabulation it is clear that, out of 50 customers 28 customers strongly agree that employees of this department do the work according to their promises and performed service right the first time. And the rest of them simply agree with customer simply agree. But only 7 people strongly agree that department shows sincere in problem solving.  It is clear that  customer  are not  totally satisfied with the department in case of problem solving, that means the department  does show seriously  in solving a problem.

From the second graph  it  is  cleared that the department is highly responsiveness  because  56% customer  believe  that they give prompt service and 70%  customer  believe that they are always willing g to help. Then from the in case of assurance it can be seen that 56% customer strongly agree that employees are courteous. And 42% strongly agree that employees have the knowledge but it’s a matter of thinking that 42% customer also strongly disagree with it.  According to them the employees are not knowledgeable

56% customers strongly agree that the employees pay attention individual customer 28% customers neither agree nor disagree and 16% strongly disagree.

And in terms of tangibles 56% strongly agree that the department is well arranged and 42% customer says the employees are neat and clean and impressive. But the most important things are 44% customer says they are not impressive.

FINDINGS

Customer’s expectations are belief about service delivery that functions as standards or reference points against which performance is judged.

One of the findings of this study is that measure the customer expectations.

Desired service

Desired service means the level of service the customer hope to receive. Whenever a customer finalize to take service from a particular organization then he /she would have an expectation and affirm must perform a level of performance. The Customer of Bank Asia also has some expectations from the customer service department. The customers believe that the customer service department may fulfilled their hopes and wishes, for which customer will buy their products.

In following it can be seen that what the customer of Bank Asia expectation from customer service department.

Personnel Needs

The Customer of Bank Asia has personnel philosophy about their service. In personnel needs customer expect a cost affective services, quick delivery, account information from Department so that his or her time might save, a comfortable zone were he or she can be able to do his transaction properly.

Explicit Services

Customers expect all kind of explicit services from Bank Asia customer service department .the explicit service means promises about the service made by the Bank Asia .Customer service department to the customer’s .Promises means exactly what will ultimately be delivered to customer.

The promises that the customer service department made are as follows:

• Customer Service Department promises to customer that they will be always reliable to customer. They promised whenever they will promise to do certain thing they will do that by a certain time, they promise whenever the customer will face any kind of problem they will help to solve it etc.
• Customer Service Department promises to be responsiveness and will promise to give prompt service.
• The department promises to give quick services give individual attention etc.
• The department promised to give modernized banking facility.
• Customer expect continuous products and services development .new product with new features.
• Many times the customers compared to the bank Asia to other bank. Like Bank Asia‘s ATM booths service is not good enough compared to others Bank‘s. And the number also very few. So customer expect that the booth might be problem free.

So the customers expect all explicit services that this department made to the customers with give according to their promises.

Implicit Services

Customer also expect from the department will give all type of Implicit services. Implicit services like

(a) Tangibles

Bank Asia promises modern looking equipment, full air conditioned zone, well arranged for waiting, well interior design overall comfortable zone etc. the more impressive the tangibles the more customer expectation will high.

(b) Price

Customers always expect cost effective services. The more cost they pay the expectation will more high and the less they will pay the expectation will be less.

Analysis

From the above finding & observing the questionnaire it is found that customer expect more reliable responsiveness department in the survey a good number of customer strongly disagree about the employees knowledge- skill, that means they might not get proper information or right information from the department. They disagree about the impressiveness of the employees, and some customers strongly disagree that they don’t give individual attention. These factors are the minimum requirements of a customer but the Bank Asia Customer Service Department can’t fulfill its 100%. In these Bank Asia should survive first the minimum requirement that the customer expects.

The difference between desired and adequate services is known as zone of tolerances. Here the zone of tolerances is much high because, the need that the customer expect is a minimum need like skilled employees, impressive employees, individual attention etc. And zone tolerance become much high when the organization can’t give some what the minimum service.

Recommendation

Bank Asia Limited is undoubtly a successful bank. But there are some limitations in Customer Service Department. If the limitations can be removed it will become more successful them at present. So I would like to recommend as follows removing its limitations.

• Customer Service Department employees must be neat and clean well dressed overall impressive looking.
• The staffs those are maintaining & in duties in customer service department must be well behaved.
• The employees of the departments must be knowledgeable and must have every idea related to Bank.
• Continue develop of new and attractive features and services.
• The department must give every customer individual attention.
• They must be always willing to help customers.
• Customer service department should inform about the problem of any service like ATM booth to the management department so that it can solve as soon as possible.
• All the equipments machines must be problem free. Like: Printer machine, if doesn’t work on time customer might not be able to get the service and customer might be highly dissatisfied.
• The Department should regular in their work. That means the work must be done at the right first time. Then, pending works will be decrease.
• The Department should arrange the work in a systematic way, and then they will be able to give the service on time.
• The seat arranged may be replaced including three chairs instead of two in front of Customer Service Department.

I believe that if the recommendation cited above are accepted by Bank Asia Limited it will be able to establish itself as one of the renowned bank in Bangladesh.

CONCLUSION

Bank Asia Ltd. is a new generation Bank in the private banking scenario of Bangladesh with a promise to fulfill every possible customer need with high efficiency and satisfaction. Its team of dedicated professionals is committed to provide an unparalleled service by using the latest technology to make bank able proposals harvest maximum benefits for the customers, and the society at large.

Its establishment it is rendering its services with qualified and knowledgeable employees and staff. The environment of Bank Asia Limited is very modernized & friendly. Each of them works on their own and there is supervision from the top. Each member is individually responsible for his or her work. The bank maintains a well structured communication from upper level to lower level. The finding of the study showed the consumers preference for high quality service. Now-a-days Bank Asia Limited merges as a well known bank in our banking sector.

From Bank Asia Limited, I have gained practical knowledge which would help me to relate my theoretical knowledge with the real world. These experiences of sharing works with such working environment will help me in a professional life. For that I am really grateful to Department of Finance of University of Dhaka & the Bank Asia Limited, Shantinagar Branch, Dhaka.

BIBLIOGRAPHY

• Annual Report of Bank Asia Limited -2010

• Internal documents of  Bank Asia  Limited

• http://www.bankasia-bd.com.bd

• http://en.wikipedia.org/

• http://www.bangladesh-bank.org/

• Hill, Charles W. L. International Business: competing in the global marketplace, Tata 5th Edition (2005) McGraw-Hill Publishing, New York.

• Joshi, Rakesh Mohan, International Marketing, Oxford University Press, New Delhi and New York, 2005.

• Peter S. Rose, Bank Management & Financial Services, 7th Edition, McGraw-Hill publications.