Over All General Banking of Jamuna Bank.

Executive summary 

Jamuna bank limited (JBL) is a banking company registered under the companies Act. 1994. Its Head office located at Chini Shilpa Bhavan (2^nd, 3^rd, & 8^th floor), 3, Dilkusha, C/A, Dhaka-1000. Bangladesh. Operation of this bank started from 3^rd June, 2001.

JBL is a highly capitalized new generation bank started its operation with an authorized capital of TK. 390 million as of December 2006 Paid-up capital of Tk. 1072.50 million. As of June 30, 2007, their paid up capital is Tk. 1,072,500.00, share premium is Tk. 85,800,000.00, statutory reserve is Tk. 249,667,430.00 and profit is Tk. 154,504,076.00.According to December 30,2009 their paid up capital is tk. 3,055,000.00, share premium is tk.95,600,000, statutory reserve is 45,990,500.00 and profit is tk. 300,779,500.00. Their profit reached to 350,100,000 on 30^th October.

JBL undertakes all the types of banking transactions to support the development of trade and commerce in the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. The bank gives special emphasis on Export, Import, Trade Finance, SME Finance, Retail Credit and Finance to the Women Entrepreneur.

Jamuna Bank Ltd. the only Bengali named new generation private commercial  bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers,  a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries.

The scenario of banking business is changing day by day, so the Bank’s responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only nine years. The bank has already ranked at top of the quality service providers & is known for its reputation.

Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. As per the provisions of Bangladesh Bank license, the Bank has offered initially its shares to public by Pre – IPO and subsequently sold shares to the public through IPO in the year 2004. The shares of the Bank are listed with both Dhaka Stock Exchange Ltd. & Chittagong Stock Exchange Ltd.

JBL has established wide corresponded banking relationship with local and foreign banks in order to provide services to its clients in respect of international trade. JBL is attempt to covering major trade and financial interest home and abroad from the starting time stage.

Introduction:

Bank is a financial institution that collects society’s surplus cash and provides a part of that as loan with a view to earning profit. So we can simply say that Bank is financial organization that deals with money. According to section – 5 of the Bank Company Act -1991, a company transacting the business of banking is called a banking company. A manufacturing or trading company will not be deemed to be a bank company even if does accept deposits from the public for financing its manufacturing and trading activities.

Now a day it is completely impossible to think a country without a bank, because banks play a diversified role in the development of an economy. The most important task of bank is building of capital which is the key factor of the development of an economy. Banking sector helps to flourish the industrial sector by supplying the capital of the industries and other services like intermediaries role in case of foreign business. It is impossible to do foreign trade with out the help of bank. Banks provide services that help the business sector a lot to carry on the business. Banks also help to establish good faith among business persons.

The growth of the economy also depends on the performance of the banking sector. Banks secure money of the society. Government takes various monetary policies. These policies are implemented with the help of banking sector.

Bangladesh is a developing country. The growth of its apparel sector is mentionable. Banks can play a strong role to take the apparel sector into a stable position. The preset economic status of Bangladesh demands immediate development of financial institutions. The key to success in such demanding marketing situation is how automated the service is on a continuous real time

Jamuna Bank Ltd. is a third generation bank in Bangladesh. It is playing an important role to develop the business sector. The growth of this bank is very good. Its motto is to provide a prompt and quick service to the clients. Jamuna Bank Ltd. has implemented well structured online banking systems that make it easier to provide prompt services to the customer.

The report has been prepared in the light of practical as well as theoretical knowledge. Also it is prepared under the guidance and supervision of the core teacher. During the internship program I have got a good idea about the bank and that is depicted in the report.

Origin of the report:

The BBA (Bachelor of Business Administration) internship program is required course for the students who are graduating from the Business studies faculty of THE MILLENIUM UNIVERSITY, Dhaka, Bangladesh. It is a Three credits hour course. Students who have completed all the required courses are eligible for this course. In this internship program, I was attached to do my internship in Jamuna Bank Limited, Motijheel Branch, where i was given the opportunity to work in all the departments. During the period of these three months the objective of the program was to familiarize the student with the practical implementation of the knowledge provides the theoretical aspect of the practical life. Both the academic and the organizational supervisor assigned me on this project. The report is on “Overall Banking Procedures of Jamuna Bank Limited”.

Objectives of the report:

General objectives:

The main general objective is to gain practical job experiences for flourishing my career and view the application of academic knowledge in the real life.

Specific objective:

§ To know about the general banking procedure of JBL.

§ To get idea about the Banking scenario of the Bangladesh.

§ Find out the acceptability of JBL to the customers.

§ Find out the existing problem of Jamuna Bank Limited.

§ To gain the experience of corporate life.

§ To find out how efficiently the present strategies work.

§ Find out the market position of JBL

§ Find out the marketing strategy of JBL and how it works.

 Scope of this report:

The scope of the study is to have an idea about general banking procedure of JBL. The report starts with the outline of the organization in focus, presenting the mission and vision of the organization. It accompanied by the global perspective and look into the future. SWOT analysis helps to assess the strength, weakness of the organization and also for evaluate the opportunities and threats of the organization.  The scope of this report is limited to the overall description of the bank, its services, and its position in the market.

Methodology:

This report is the reflection of three months internship program at the Jamuna Bank Limited, Motijheel branch. Banking sector is a fast growing sector in Bangladesh. All banks specially the private sector banks are facing tremendous competition from each other. As an internee I had to collect data and information from that busy corporate environment. In order to prepare this report I have collected data and information both from primary sources and secondary sources.

The primary sources are given below:

• Face to face conversation with officers.
• Taking initial lectures from senior officers.
• Consulting with the supervisor.
• Practical work experienced at different desk.
• Close observation of the tasks.

The secondary sources of information are given below:

§ Annual report of the Jamuna Bank Limited.

§ Website of the Jamuna Bank Limited.

§ Different publications of the Jamuna Bank Limited.

§ Theoretical books relating banking sector.

§ Internet (Website of Jamuna Bank).

Limitation

Although the officials were so busy, they gave me wholehearted cooperation in the time of internship also in preparing this report. It was such a nice experience I have gathered from JBL. But I have faced the following that may be terns as die limitations of the study.

The first obstacle was that they would not provide any remuneration even TAJDA for doing internship in JBL.

Lack of records

Sufficient books, publications and figures were not available. If this limitation were not been there, the report would have been more useful.

Background Information of Jamuna Bank Limited

Jamuna Bank Limited is one of the leading private commercial banks in Bangladesh that has achieved tremendous popularity and credibility among the people for its products & services. It is a public limited company and its shares are traded in Dhaka and Chittagong stock exchange. The bank undertakes all types of banking transaction to support the development of trade and commerce in the country. JBLs service is also available for the entrepreneurs to set up new ventures and BMM^-,, of industrial units.

To provide clientele services in respect of international trade it has established wide, corresponded Banking relationship with local and foreign banks covering major trade and financial interest home and abroad.

The bank gives special emphasis on export, import, trade finance SME finance Retail credit and finance to woman Entrepreneurs.

Corporate Vision and Mission:

Vision of JBL:

To become a leading banking institution and play a pivotal role in the development of the country.

Mission Statement of JBL:

The bank is committed to satisfying diverse needs of its customer through an array of products at a competitive price by using appropriate technology and providing timely services, so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work force.

Corporate Slogan:

Your partner for growth.

Strategic Business Plan:

• Though Jamuna Bank is engaged in conventional banking it also considers the inherent desire of the religious Muslims, and has launched Islami Banking system and established one Islami banking Branch in the year 2003, the Islami Banking Branch is performing its
• The operations of the JBL are computerized to ensure prompt and efficient services to the customers.
• The bank is committed to continuous research and development so as to keep pace with modern banking.
• The bank has introduced camera surveillance system (CCTV) to strengthen the security services inside the bank site.
• The bank has introduced customer relation management system to asses the needs of various customers and resolves any problem on the spot.
• The bank has also introduced full online banking facility to the client.

Corporate Social Responsibilities of Jamuna Bank Limited:

As a part of the society all types of organization have the responsibility towards society. Jamuna Bank perceived its social corporate responsibility. So it always exercises its responsibility to the society. In the backdrop of profound success the board of directors considered the formation of JBL foundation through which some social welfare activities can be rendered to the society. Last few years they are consistently expanding their social welfare activities. During different calamity or disaster time period they have distributed relief to the affected people. They have stated scholarship program to the meritorious student who are not financially solvent. The authority also contributes to the Muktijoddha Jadughar and AtishDipankarUniversity for education purpose.

SWOT Analysis of JBL:

SWOT analysis is the compete study of an organization’s exposure and potential in perspective of its Strength, Weakness, Opportunity and Threat.  It assists the organization to make their existing line of performance and also forecast the future to improve their performance in comparison to their competitors. It also helps the organization to understand the present situation of the business and also considered as an important tool for making changes in the strategic management of the organization.

Strength of JBL:

§ Experienced top management for operating the business smoothly. The authority has employed some experienced bankers who have great experienced in this profession.

§ To compete with the competitor the bank has satisfactory capital base for running the business

§ Due to its careful decision low infection in loan exposure.

§ Prospective IT infrastructure which help to maintain the online banking services.

§ Jamuna Bank Limited is always engaged in a variety of corporate social activities in the country.

§ For ensuring the maximum level of customer satisfaction and earning huge profit JBL is expanding the number of branches in new location.

§ JBL has correspondent relationship with leading international banks in 117 countries to cover all important financial centers of the globe.

  Weakness of JBL:

§ Market is saturated because many competitors already exist in the market so they have to face lots of competition from the existing competitor bank. Already many bank established their position in the market so as a later entrant they need time to establish its position in the market. As a result they have limited market share

§ For making profit sometimes they exposure to large loan which is really risky for their business because their source of capital is the people deposit.

§ The authority has excessive dependency on term deposit which decreases their profitability level.

§ Weak fund management

§ They give high interest rate for gaining fund as a result it increases the cost of fund and decrease the profitability level.

§ Islamic Branch funds are not ring fenced.

Opportunities of JBL:

§ Development of a country depends on both private and public sector. For this reason government give emphasis on the development of private sector. As a result regulatory environment favoring private sector.

§ Although Credit card is not a new concept in out country but there is a huge potentiality for capturing this market. So JBL can take this opportunity.

§ Small and medium enterprise is one of the big opportunities for JBL, because day by day the numbers of small and medium are increasing and they are one of the great sources of profit.

§ Since JBL is not an old bank and has limited number of branches all over the country, so it has the opportunity to increase the number of branch all over the country.

§ Now a day’s number of banks engaged in merchant banking so JBL has the opportunity to expand their business in this line.

Threats of JBL:

§ Due to global economic crisis Bangladesh Bank have decided that all the will keep their loan rate within 13% as a result it will increase their profitable level.

  JBL has to revise its interest rate for deposit purpose as a result they have to face competition in case of collecting deposit.

Internship report

§ Some other banks offer great benefit for collecting the deposit which is a great threat for JBL. Like Daily basis interest on deposit offered by HSBC

§ Banking is one of the profitable businesses as a result the numbers of banks are increasing gradually. As a result it increased competition in the market for quality assets.

§ Sometimes they face supply gap of foreign currency.

§ Overall liquidity crisis in market

From the analysis we can easily find out the strength and weakness of the bank which will help to compete with others bank. It also helps to find out the opportunity and threats of the bank which is a external factor. Without considering this factor bank can’t compete in the market.

Financial performance of JBL:

Authorized capital and Paid up Capital:

Authorized capital of the bank remains unchanged at TK. 1600 Million in the year 2007and the paid up capital of the Bank is TK. 1, 07, 25000 ordinary shares of TK. 100 each. Except 2005 the number of ordinary share is same for both years. Authorized capital is Tk.5600.00 million and paid up capital is Tk.3000.71 million as of 31^st December 2009.

The data table with graph is given below

Reserve fund and other reserve:

The total reserve was TK. 487.46 million in the year 2005; in 2006 it was increased on     TK. 629.33 million so the difference is 141.87 million. In 2008 it was reached at TK. 703.67 million.  in 2010 it reached to 990 million.

Internship report

Here we can say that reserve fund of JBL is increasing gradually. Data table along with graph are given below:

Reserve fund of JBL

Deposit of JBL:

Deposit is one of the important aspects of banking sector. It is termed as the life blood of a commercial banking. JBL was able to collect a total deposit of TK. 14454.13 million. It was able to collect a total deposit of TK. 17284.81 million in year 2006. Year 2007 it collected total deposit of TK. 17491.34 million. The performance of deposit collection is improving gradually. To present this situation table along with graph are given below:

Deposit position of JBL

 Investment position of JBL:

   The total amount of investment in 2007 is TK. 2037.84 million. In 2008 the total amount of investment becomes TK. 2552.67 million. But in 2009 it decrease and become 2550.59 million.But in 2010 it got a boost and reached to 3667.23 million. The investment portfolio comprising Government Treasury bills etc. contributed mainly towards fulfillment’s of Statutory Liquidity Requirements.

 Investment position of JBL

Human resources of JBL:

Human resources are one of the key elements of success in case of any kind of business. Banking sector is not exceptional. So the authority believes that investment in human resources will ultimately return high dividend and also consider as intellectual property of the bank. The bank offer competitive complete package to the employees. They also identify the importance of well trained professional staff whose skill and commitment will help the bank to achieve the goal.

They also recognize the importance of employee’s participation in standardization and general well being of the company. They believe that their success depends on employees who are working for together in the interest of the client. The authority have follow the below policies for the development of human resources.

§ The bank committed to nurture the employee relationship by continuous development of innovative rewards and incentive programs that focus on long and short term operational and strategic goals.

§ Give emphasis on team work, training and philosophy of internal promotion to enhance the empowerment of employees.

§ For free exchange of positive ideas within the workplace a policy is adopted for open, honest and two way communication.

§ For maintaining human resources they reward them with performance bonus, overseas trip, promotions and increments reasonably.

Besides developing the human resources professionally with the view of Jamuna Bank Limited has established a library where all sorts of books including professional books are available so that the officers and executives can sharpen and updated their knowledge.

Training Division:

Providing training facilities to its executives or employees the authority has set up a training institute. This institution was established in September, 2006. This institute has already conducted a number of foundation and specialized courses. For specialize training purpose a number of officers were sent to Bangladesh Institute of Bank Management and other training institutes at home and abroad.

Internal Control and Audit System:

To reviewing and evaluating internal control system the bank has an Internal Control & Compliance Division managed by experienced and efficient personnel. There are three departments under the Division namely:

§ Audit and Inspection Department

§ Compliance Department and

§ Monitoring Department.

Appointment of Auditors:

M/S G. Kibria & Company, ‘A’ graded firm of Chartered Accounts as identified by Bangladesh Bank was appointed as external auditor for the bank in the 5^th Annual General Meeting for the third consecutive year.

 Correspondent Relationship:

Jamuna Bank Limited has established correspondent relationship with leading International Banks in 117 countries through 152 correspondents to cover all important financial centers of the globe. It activities to increase its network of correspondent relationship with Prime International Banks and Financial Institutions in order to help satisfy the expanded needs of its customer globally efforts are being made of established drawing arrangements with the overseas exchange house to bring home bound remittance into the country through the banking channels.

Information Technology:

For providing prompt service to its customer information technology is important specially in banking sector. They have a strong conviction of applying information technology in their operation for ensuring prompt but accurate service to its customer.

 All of the branches are connected with online. They have established 45 ATM machines. They have already introduced direct debit card, credit card in limited range and tele banking.

Online Banking:

Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from any of its 59 branches. Valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra. They also issue credit card.

Key features: 

§ Centralized Database

§ Platform Independent

§ Real time any branch banking

§ Internet Banking Interface

§ ATM Interface

§ Corporate MIS facility

Prevention of Money Laundering:

The provision of Money Laundering Prevention Act 2002 and Bangladesh Bank instruction and guidance JBL has strengthen Anti Money Laundering activities. Besides cheating awareness among the valued customers, the bank has organized a number of training programs for its officials.

Competitors:

Other commercial banks are the competitors of Jamuna Bank Limited. It can be public or private bank and financial institution such as lease companies or insurance companies etc.main branch of JBL is situated in Dilkusha Commercial area which is the main commercial place in Bangladesh and maximum financial institution are situated in this area. So the bank has to face lots of competition in case of operating business.

Future Thrust:

JBL has some plan for its future years. To achieve its goal it has some future thrust. These are given below:

§ SMS Banking

§ Merchant Banking

§ Full duplex on-line Banking

§ Innovation and introduction of new liability and asset products

§ Internet Banking

§ Disaster Recovery Site (DRS)

§ Expansion of business at home and abroad

§ Enhancing in-house training facilities

§ Modernizing the Training Institute

§ Opening new branches at new location

Three themes for growth:

§ Introducing card network and electronic banking.

§ Expanding personalize services

§ Building strong presence in the market with reputation

Foreign Remittance:

Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time. Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby (where they reside/work) to send their money to their dear ones in Bangladesh.

To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank.

 Trading of Government Treasury bond & Other Govt. Securities:

Jamuna Bank Limited has been nominated as a Primary Dealer by the Bangladesh Bank for trading 5 years & 10 Years Treasury Bonds and other Government Securities.

1. Eligibility criteria:

§ Individuals and institutions resident in Bangladesh, including provident funds, pension funds, bank and corporate bodies shall be eligible to purchase the BGTBs.

§ Individuals and institutions not resident in Bangladesh shall also be eligible to purchase the BGTBs, with coupon payment and resale/redemption proceeds transferable abroad in foreign currency subject to fulfillment of conditions as mentioned in the Bangladesh Govt. Treasury Bond Rules-2003. 

2.  Loan facility:

JBL offers loan up to 95% of the present value of the bond/other securities against lien    of the above instrument for their customers.

PRODUCT AND SERVICE OFFERED BY JAMUNA BANK LIMITEDProducts of Jamuna Bank Ltd. can be divided into two parts. They are asset product and liability product. Generally liability product means deposits of many kinds that are payable to parties. On the other hand, asset products are the products which clients are liable to pay to bank. Different types of undertaking by the bank to the clients or on behalf of the clients are also a type of liability to bank. On the other hand a different type of promises makes by the clients to bank is considered as bank’s asset.

Personal Banking:

Personal Banking of Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available you a unique mixture of easy and consummate service quality.

JBL offers the following key Personal Banking Services:

-Current Deposit Account

-Savings Deposit Account

-Short Term Deposit Account

-Fixed Deposit Account

Current Deposit Account:

CD stands for current deposit. It is cost free. No interest is given by the bank. As it has no cost and more over bank charges on different services, the target of the bank is to increase the number of current account clients. It can be only opened by the name of any organization and not in any personal name. Current account mainly opens by different types of organization for operating their business transaction smoothly. Proprietorship, Partnership, Limited companies and Club or Societies can open current account.

Bank authority charge twice in a year for operating the current account and its half yearly charge is TK.500. If any one wants to stop account then bank charges TK. 100. Opening balance of current account is minimum TK. 5000 but if the depositors have any problem then it can be open by TK. 2000. Requirements for different types of current accounts opening are given below:

Proprietorship Account:

1.   Introduction of account

2.   Two photographs of the account holder which is attested by the introducer.

3.   Valid copy of trade license

4.   Rubber stamp

5.   TIN number certificate (if any)

6.   Copy of voter ID card or passport or commissioner’s certificate

Partnership Account:

1.   Introduction of account

2.   Two photographs of the account holder which is attested by the introducer.

3.   Partnership letter duly sign by all partners (sign should be similar as stated in the   Deed)

4.   Registration (if any)

5.   Rubber stamp

6.   Updated trade license

Limited company Account:

1.   Introduction of account.

2.   Two photographs of the account holder which is attested by the introducer.

3.   Valid copy of Trade license.

4.   Board resolution of opening account duly certified by the chairman Managing   Director.

5.   Certificate of Incorporation.

6.   Certified (Joint Stock) true copy of the Memorandum and Article of Association of the company. Duly attested by the Chairman of Managing Director.

7.   List of director along with designation and specimen signature.

8.   Latest certified copy of form – X11 (to be certified by the registrar of Joint stock companies) in case of directorship change.

9.   Rubber Stamp

10. Certified copy of certificate of commencement of Business.

11. Latest audited balance sheet

12. Tin certificate

13. Certificate of Registration (in case of insurance companies)

Club/Societies Account:

1.   Introduction of the account

2.   Two photographs of the account holder which is attested by the introducer.

3.   Board resolution for opening account (Duly certified by President/Secretary)

4.   List of existing Managing Committee.

5.   Registration (if any)

6.   Rubber stamp

7.   Permission letter from Bureau of N.G.O (in case of  N.G.O account)

Savings Account:

Bank considers it as Low Cost liability product. Savings account is mainly open by individual person. Generally householders and other small scale savers is the client of this account. Opening balance of savings account is TK. 2000. In case of savings account bank authority gives 6% interest based on its deposit to its clients and interest will be counted on daily basis. Bank charge very limited amount because it is an interest bearing account. Bank half yearly service charge is TK. 300. If any one wants to close this account then they have to pay TK. 50. According to Bangladesh Bank instructions 90% of SB deposits are treated as time liability and 10% of it as demand liability. Generally banks require a 7-day prior notice if the total amount of one or more withdrawals on any date exceeds 25% of the balance of the account unless is given. But in JBL there is no restriction about drawing money from savings account. Any time holders may draw money of any amount without prior notice.

Short-term Deposit:

Customers deposit money for a shorter period of time. STD account can be treated as semi-term deposit. STD should be kept for at least thirty days to get interest. The interest offered for STD is less than that of savings deposit. Bank authority gives 5.5% to its clients. Volume of STD A/C is generally high. In MBL, various big Companies, Organizations, Government Departments keep money in STD accounts. Frequent withdrawals are discouraged and require prior notice.

Interest rate of Current Deposit, Savings de deposit and Short Term Deposit account are given below:

Interest rate of SB, CD & SRD A/C

Incidental charges of different account are given below:

Table: Incidental charges of JBL

Fixed Deposit Account:

In case of fixed deposit depositor deposit money for a fixed period of time like 1 month, 3 month, 6 month or 1 year. Fixed deposits are repayable along with profit or after maturation period. If the depositor wants then a matured FDR may be renewed for any of the periods mentioned above. The deposit will be automatically renewed from the date of expiry for a period of three months at the rate of profit applicable on the renewal if the depositor does not give any instruction to the branch within on month of the date of maturity of the FDR. If the depositor encashment the deposit before maturity no profit will be paid to the client. Recently Bangladesh bank has decided that the interest rate of FDR will lie between 9% to 11%. For this reason the Assets Liability committee of the bank has revised interest rate of FDR. The new rates are given below:

Interest of FDR:

Table: Interest of FDR

Schemes offered by JBL:

JBL has introduced some scheme for its customers which not only increase the profitability of the bank but also increase the saving tendency of the customer. These are given below:

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 emergencies. JBL has introduced Monthly Savings Scheme (MSS) that allows it clients to save on a monthly basis and get a handsome return upon maturity. The concerned customer can avail loan facility up to 80% of the deposited amount.

Education Savings Scheme:

Education is one of the basic needs of every citizen. Every parents want proper education to their children. Education is the prerequisite for the socio-economic development of a country. Higher education may be hindered due to the change of economic condition of their parents. To solve this problem JBL has introduced “Education Savings Scheme” which offers its clients to build up cherished fund by monthly deposit of small amount at client affordable capacity. The customer has the option for withdrawing total accumulated amount including principal on maturity date at a time or taking monthly benefit during the next five years from the date of maturity keeping the principal intact.

Marriage Deposit Scheme:

Marriage of children especially daughter is a matter of great concern in the context of our country. It involves expense of considerable amount. Practical parents make effort for gradual building of fund as per the capacity to meet the expenses. Parents get relief and feel secure if they can arrange the necessary fund for their children marriage, no matter whether they can survive or not. By considering this factor JBL has introduced marriage deposit scheme which offer its clients to build up cherished fund by monthly deposit of small amount at client capability. It grows very fast at high rate of interest yielding a sizeable amount on maturity.

Lakhpati Deposit:

To become “Lakhpati” is simply a dream for the most of the people of Bangladesh especially to the lower and lower middle income group. Keeping that in mind JBL has introduced “Lakhpati Deposit Scheme” which has flexibility in report of maturity and monthly installment as per affordable capacity.

Kotipati Deposit Scheme:

Kotipati deposit scheme is one of the schemes of JBL. It is realizable for high income group who have strong determination and savings habit. JBL has introduced “Kotipati

Deposit Scheme” offering the savings plan fit to your income and executes your dream to be a Kotipati by monthly deposit at client affordable capability.

Monthly Savings Scheme, Education Savings Scheme, Marriage Deposit Scheme, Lakhpati and Kotipati Deposit Scheme have the following facilities:

§ These types of deposit account can be opened at any branch of JBL.

§ They can deposit at any branch of JBL and the same through on line banking

§ Monthly installment can be automatically collected from client savings account maintained with JBL.

§ Installment amount shall be deposited within 20^th day of each month. If the 20^th is holiday then customer may also installments on next working day.

§ No loan facilities will be allowed from any other banks/ financial institution against the deposited amount except JBL.

Monthly Benefit Scheme:

Jamuna bank limited has introduced Monthly Benefit Scheme for the prudent person having ready cash and desiring to have fixed income on monthly basis out of it without taking risk of loss and without cashing the principal amount. This scheme offers highest return with zero risk.

General Banking department of JBL:

General banking is the starting point and ‘Heart’ of all kinds of banking operations. It provides day to day services to its clients. The core function of bank is performing by this department. In Jamuna Bank Limited Motijheel Branch deposit section, cash collection, clearing and accounts section are under general banking department.

General banking department does the most important and basic work of the banks. All other departments are linked with this department. It plays a vital role in deposit mobilization of the branch. For proper functioning and excellent customer service this department is divided into various sections namely as follows:

Deposit Section:

Deposit section is one of the important parts of General Banking Section. It is fully computerized. Deposit section officer maintains the account number of all customers of the bank. They used different code number for different account. Through this section depositor can know present position of his or her account. The officer makes posting three types of transaction such as cash, clearing and transfer. It performs the following tasks:

§ Post all kinds of transaction

§ Provide on demand report

§ Cheque maintenance

§ Preparation of day transaction position

§ Preparation of closing monthly transaction.

Different types of Account opening Section:

This section mainly deals with different types of account opening. It also deals with the issuing of cheque books and different account openers inquiry. A customer can open and close different types of accounts through this department.

Compliance Guidelines:

In case of account opening officer have to follow some compliance guidelines. These are given:

§ Identification: As per Section 19 KA of the Prevention of Money Laundering Act 2002 requires all institution to seek satisfactory evidence of the identity of those with whom they deal and also as per Bangladesh Bank guidelines. Customer present address should be verified physically or issuing a thanks letter registered with the Acknowledge Due then the banks satisfy about the present address of the clients.

§ Declaration: In the declaration form customer need to mention the monthly and yearly transfer volume which will be matched with the transaction profile.

§ Transaction Profile: In the TP five major portions must have to be mentioned clearly. Relating officer of the bank will verify and monitor the transaction mentioned in the TP. If any major change in transaction a clarification should have to be kept in abnormal transaction file and existing TP will have to be change. In order to be able to judge weather a transaction is or not suspicious, institutions need to have a clear understanding of the business carried on by their customer

§ Know your customer (KYC): As per Bangladesh Bank guidelines KYC is one more additional documents .By this document bank will be known customers detail and risk involvement of customer. If a customer has established an account using a false identify, she may be doing so to defraud the institution itself or to ensure that she can not be traced to the crime the proceeds of which the institution is being used to money launder. A false name, address will usually mean that enforcement agencies can not trace the customer if he is needed for interview of an investigation.

Loans and Advances department of JBL:

Credit is one of the functions of commercial banking. The main use of bank fund is to collect money from surplus unit and lend it to deficit economic unit. Bank credit is very important for bringing economic development in a country. The bank has formulated its policy to give priority to small and medium businessmen while financing large-scale enterprise through formulation of a consortium of bank. Bank provides credit facilities to the businessmen by way of loan, advances, overdraft, and cash credit .when loan is granted or overdraft is sanctioned, the amount of loan or overdraft is entered in the account of the customer and he is allowed to draw check up to the amount agreed upon. Thus the bank creates a deposit in the name of borrower. Basically credit is the function by which people can perform their job by depositing and lending money from the bank with an implied interest rate and bank perform here as a middleman. Target market for loans and advances are given below:

Target market for loans and advances:

§ Agro processing industry

§ Textile spinning, Dyeing/Printing

§ Export oriented garments, Sweater

§ Foods and Allied

§ Paper and Products

§ Engineering steel mills

§ Chemical, Pharmaceuticals etc.

§ Telecommunication

§ Computer software and information technology

§ Manufacturing of artificial flowers

§ Electronics

§ Infrastructure

§    Small and medium enterprises

Foreign Exchange Department of JBL:

No country is self-sufficient in this world. Every one is more or less dependent on another, for goods or service. Say, Bangladesh has cheap manpower whereas Saudi Arabia has cheap petroleum. So Bangladesh has dependent on Saudi Arabia for petroleum and Saudi Arabia is dependent on Bangladesh for cheap manpower. People of one country are going to another country for Education, Medical Service etc. One country export Agricultural commodities, another country exports Industrial products, all these transactions needs foreign currency and are related to Foreign Exchange. The term “Foreign Exchange” has three principal meanings. Firstly it is a term used referring to the currencies of other countries in terms of any single one currency. Secondly, the term also refer to instruments used in international trade, such as bill of exchange, draft’s and travelers cheque and others means of international remittance. Thirdly, the term foreign exchange is also quite often referred to the balance in foreign currencies held by a country.

Activities of Foreign Exchange:

There are two kinds of foreign Exchange transaction is done by the Jamuna Bank Limited, Motijheel Branch. Those are given below.

§ Import

§ Export

Letter of Credit (L/C):

Generally Foreign Trade works with L/C. L/C is important for both of the import and export process. So we should have clear idea about L/C.L/C is guarantee of a bank (Issuing Bank) on behalf of the importer in a trade in favor of the exporter to pay a certain sum of money under some specific terms and conditions. So, an L/C is a negotiable instrument (A form of documentary credit) that carries a promise of payment with the fulfillment of certain conditions. An L/C can be used in foreign trade as well as for local payments.

Import and Export handling and financing

import Financing

Is the most important method of import -financing International trade take place between sellers and buyers located in different countries. The parties to a trade transaction are not always known to each other. Even if they are known to each other the seller may not have full confidence in the carried worthiness of the buyer or the buyer may not like to pay before he actually receives the goods. In letter of credit the banker’s credit worthiness is substituted for the credit worthiness of the importer. Under a bank- cards letter of credit, the issuing bank gives a written undertaking on behalf of the buyer that the bank will honor the obligation of payment or expectance as the case may be on presentation of stipulated documents. As the request of the importers bank issue the letter of credit at a merging by the govt. instruction. Bail: does not generally issue the letter of credit less then 50% margin. JBL follow the margin prescribed by the government strictly.

Export Financing

The Exporter needs finances at various stages, some at pre-shipment stage and the other at the post shipment stage.

IMPORT BUSINESS

The total import business handled by the Bank in 2006 was Tk.15457.80 million compared to Tk.12151.90 million in the preceding year registering a rise of Tk.4305.80 million being 27.20 percent. A sizeable L/C’s were also opened by the Bank in the year under review. The import items included industrial raw materials, machinery, consumer goods, fabrics, accessories etc. From 2009 they are getting big clients and their import business has been reached to 25000.90 million. In 30^th October 2010, they got the

highest sizable L/C.

EXPORT BUSINESS

The Bank handled export business worth to1583.70 million in the year under report. In 2005 total export business handled by the Bank was Tk.6521.80 million. Thus there was an increase of Tk.5061.90 million in export business handled by the Bank, being 77.62 percent over the preceding year. The major export item was Ready made Garments.In 2007 their export business increased to 6901.60 million. In 2009 it roses to 8499.20 million which is an increase of 240 million then 2008. In 2010 July it reaches to 9982.31 million.

Analysis:

After working in General Banking Department& foreign exchange department as an internee I have identified some points which led the bank behind compare to other private bank. Other private bank like Dutch Bangla, BRAC and Standard Chartered bank provide SMS baking service but this does not start this type facility yet. Employees of this bank are not so efficient as a result sometimes client gets fed up for their services. This bank also offers remittance service through money gram but most of the time software is not working as a result customer have to wait for getting their money. Sometimes they have to take the services from another bank. Lack of employees is one of the main reasons that customers do not get prompt services.This bank offer different types of scheme for its clients. But most of the time this scheme are closed by the clients before maturity, because these account holder are not interested to continue their account in this bank due to services and interest rate offer by the bank.

And in recent times many schemes are closed by the clients because this bank recently shifts from one place to another place. Some times employees open fake account for achieving their performance target. During my internship period I have observed that some times they failed to supply deposit slips due to shortage of the supply. And the reason behind this situation is the negligence of the officer who is in charge for this activity.

 To sustain in the market and compete with other private bank this bank have to take some necessary steps for providing prompt and quality services to its clients. But their service in clearing section is very good.any amount above 5 lac and if it is within 2 kilometer of motijheel then the cheque is considered as same day and customers get payment within 1 day. For other cheques customers get payment within 3 days.

Findings of the report:

During the internship period as an intern I have found some point about this bank which is given below:

§ Improper allocation of employees and the number of employee in the branch is few.

§ Number of ATM booth is very low. As a result they have to use other bank booth and bear the extra charges.

§ The branch manager, officer and executive who have achieved target in all respect may be rewarded.

§ Political interference has to be avoided in selection of employee. Because customers are very sensitive in service marketing. If they don’t get right service at right time at right place by the right person they will switch over in other bank.

§ From the study it has been found that the pricing policy of JBL is not much satisfactory. For this reason they should hire marketing specialists who will help them to develop effective service strategy, different critical decision and prepare various plans.

§ For all types of work this branch is depended on  head office, so they can’t give prompt services to its customers.

§ Interpersonal relationship of the employees is not satisfactory level.

§ Total profit and deposit amount increased of JBL Motijheel Branch than before.

§ Total advances also increases that mean company’s asset also has been increased.

§ Due to absence of legal framework of JBL, the bank is facing problems in its transactions to handle its value added customers.

§ Poor conditions of Balance of Payments of JBL.

§ Lack of enough business communication skills of the employees.

§ Employee-customer relationship is quite good.

§ Only tile urgent works are done and all normal works remain unattended and pending.

§ The working condition or the working facility for the employee is quite good.

§ Use of modern technology such as computerization.

§ Lack of promotional and marketing activities in order to attract more customers.

§ Branch gives emphasis on big clients like large amount depositors or creditors.

§ From the beginning of the operation the branch face losses and from the beginning of 2008 it started gaining profit.

§ Their on-line service is quite satisfactory.

§ Their security system is quite good.

§ Behavior of the employees are good to customers.

§ They give working opportunities for internees.

Limitation of this report:

Banking sector is a vast field. It is so vast that it is very tough to cover the basic of banking within three months. There is a certain boundary to cover this study. Like any other articles and theories this study is not free from limitations. I have tried my level best to overcome these limitations through hard and sincere devotion to the assigned duty and extensive study. The major limitations are given below:

§ I complete my internship in a small and comparatively new branch, so I don’t get the proper information which I need for this report purpose.

§ The bank personnel and officials were very busy with their professional activities. It was little bit difficult for them to help within their high schedule.

§ Time is an important considering factor in report writing. It is very difficult to learn abut all the basic factors of banking.

§ Limited access to banks files due to confidentiality is also a factor for limitations.

§ Non availability of data in a systematic manner.

§ Shortage of written material.

§ Since I have done my internship on clearing, account openingand foreign exchange so I have lack of proper knowledge about other departments.

§ Bank authority also prohibits some facts to be included in this report.

§ JBL don’t publish any brochure so it was difficult to collect all the updated information.

Recommendation:

I had the practical experience and exposure in Jamuna Bank Limited for just three months. Banking sector is very vast and complex so it is not easy for me to recommend some issues which enhance the performance level of the organization. During my internship period I have found some shortcomings regarding operational and other aspect of banking. I would like to present the following recommendation:

§ The Bank should improve the quality of its service and ensure the maximum level of customer satisfaction.

§ Officer should be more efficient for providing prompt services to its clients and ensure less time consumption regarding General Banking.

§ There are huge gap between the customer’s expectation and actual services provided by the Bank. Bank should try to minimize this gape for improving the relationship between the clients and Banks.

§ Training the employees one or two times in a year with latest banking technology which will help them to adjust in a new working environment.

§ To attract more clients JBL should create a new marketing strategy, which will increase the profitability of the bank.

§ If we consider the promotional activities then we can easily find out that other bank sponsored TV or Radio news, talk show and business news but still JBL ignore this side. So JBL should use this type promotional activity for capture the market.

§ To establish a better social image the Bank should needs to participate more in social welfare activities.

§ Bank should start SMS Banking because other private banks have already started this facility.

§ Very often customer complained that the ATM machine is performing effectively and they can’t withdraw the money. So improve own ATM network and ensure better services.

§ Number of ATM booth should be increased and maintain sufficient fund in ATM booth otherwise customer have to use other bank booth and bear additional charges for that.

§ From my personal experience I have seen that many customers wait for along time for any services as they see that the some concerned officers are doing their best to meet the requirements of the clients. So Management should employee at least few more employees in General Banking and Foreign Exchange department of Motijheel Branch.

§ Bank can introduce more advance MIS system to mobilize its day to day activities. It will help the employee to do their activities very quickly and the same time maintaining the quality of the work.

§ Foreign exchange operation of this branch is not so dynamic and less time consuming like other private bank. So JBL should take some initiative steps to overcome this problem.

§ To motivate the employees Bank should give good salary and attractive compensation packages and also Bank must adopt strict supervision and monitoring the performance of employees.

§ JBL is very conservative for post shipment finance. To flourish the Foreign exchange department it should change its mentality and finance post shipment business.

§ The Bank give emphasis on give large amount of loans but if the loan default then the bank will face great loss. So to avoid this Bank should also give emphasis on SME loan also.

§ The Bank should offer introduce new innovative products to attract more new customers and provide different kind of benefit for its existing customers.

§ Innovative loan scheme and service should be offered and should be more flexible in terms of SME loan repayment.