General Banking of Jamuna Bank of Foreign Exchange

The main objective of this report is to analysis overall description of the company, its services, and its position in the industry and its General Banking analysis on the main focus of foreign exchange. Other objectives of the report is to maintain with the operation in the Banking arena including management service overview of bank and analysis of banking operation in different sectors. Here also find out the SWOT analysis and observe the working environment.

Introduction:

Economy of Bangladesh is surviving to get rid to get and from the world most underdevelopment economics. One of the reasons may be its underdevelopment banking system. Since 1990 Bangladesh government has taken a lot of financial sector reforming measures for making financial sector as well as making more and transparent a formulation and implementation of this reform activities have also been participated by different international organization like world bank. There many functional institute to control the national economy of the country. Bank is one the institutions of such kind. The term bank can be defined as a financial institution that controls monitory flow of a country by means of investment, savings issuing, and loan and through other financial activities. According to Cayern cross “A bank is financial intermediate a dealer in loans and debt”. To serve the purpose, the Jamuna Bank is working in Bangladesh with a theme of “Excellence in Banking”. As the consequence, this report focuses on “General Banking of Jamuna Bank Limited of Foreign Exchange Branch”.

Objective of the study:

The first objective of witting this report is to fulfill the partial requirements of the BBA program. Other objective of the report is to familiarize with the operation in the Banking arena including management overview of bank and analysis of banking operation in different section. More especially the objectives of the study.

• To fulfill the partial References
• Requirement of BBA program.
• To identify the problem area.
• To provide an overview of JBL in Bangladesh and its evolution.
• What KYC is and how it is done in JBL.
• To find out the SWOT analysis.
• To observe the working environment.
• A meticulous insight of the customer service division and dispatch section concerning how to deal with the customer.
• Knowledge about the clearance of internal and external cheques.

Methodology of the study

In order to complete this report I proceeded through a work plan. I physically visited and discussed with executives and top-level management of Jamuna Bank Limited. This report has been prepared based on experience gathered during the period of internship. I also acquired information from JBL profile, the annual report and bank web site of JBL. I have presented my experience and findings with the help of different diagrams and charts in analysis part of this report. The details of the work plan are given below:

Data collection method

Relevant data for this has been collected primarily by direct investigations of different records, papers, and documents etc. Operational process and different concerned personnel. The interviews were administered by formal and informal discussion. No structured questionnaire has been used. Information regarding office activities of the bank has been collected through consulting bank records and discussion with office personnel.

Data sources:

The information and data for this report has been collected from both the primary and secondary sources.

Primary sources:

• Face to face conversation with the respective officers and stuffs of the branches and head office.
• Face to face, conversation with clients visited the branch.
• Practical work experience in the different desk of the department of the branch covered.

Secondary sources:

• Daily affairs.
• Various publications on bank.
• Website of JBL.
• Annual report of the bank.
• Different procedure manual published by JBL.

Data Processing:

Data collected from secondary sources have been processed manually and qualitative approach has been used throughout the study.

 Data Analysis and interpretation

Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. Therefore, the report relies primarily on an analytical judgment and critical reasoning.

Profile of Jamuna bank limited:

Jamuna Bank Ltd. (JBL), the only prevalent Bengali name, among the private commercial banks operating in Bangladesh, is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3^rd June 2001. Jamuna Bank Limited was established by a group of wining local entrepreneur’s conceiving an idea of creating model banking institution with different outlook to offer services to the valued customers; a comprehensive rang of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in diverse trade sectors, commerce and industries. The bank is currently operating with 23 branches all over Bangladesh. JBL is an enlisted banking company in the DSE (Dhaka Stock Exchange) which went public in the year 2006.

Sponsors & Capital:

The sponsors of Jamuna Bank Limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent   industrialists & businessmen having wide business reputation both at home & abroad.

JBL is a highly capitalized new generation bank with an authorized capital and paid-up capital of Tk.1600.00 million and Tk.858.00 million respectively. The equity of the bank stands at Tk.1322 million.

Vision:

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

Mission:

The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and timely service 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.

Treasury Function

Jamuna bank limited treasure is playing a pivotal role in local money market. Considering its volume & activities our central bank has nominated JBL as one of the primary dealers (Out of nine) to provide treasury function / services on behalf of Bangladesh government.

Management:

The sponsors of Jamuna bank limited are leading entrepreneurs of the country having stakes in different segments of the national economy. Jamuna bank ltd is managed by highly professional people. The present managing director of the of the bank is a forward-looking senior banker having decades of experience and milti-discipline knowledge to his credit both at home and abroad. He is supported by a sophisticated and skilled professional team with diversified experience in finance and banking.  The management of the bank constantly focuses on the understanding & anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers & known for its reputation. Mr. Fazlur Rahman is currently the chairman of the bank .In every two years; the chairman is elected among the founding sponsors of Jamuna bank. There are 13 members in the board of director in JBL who are elected from the founding 20 members by rotation.

Corporate Culture of JBL: 

Employees of JBL share certain common values, which help to create a JBL culture,

• The client comes first.
• Search for professional excellence.
• Openness of new ideas and new methods to encourage creativity.
• Flexibility and promote response.
• A sense of professional ethics.

 Objectives:

• To earn and maintain CAMEL rating ‘Strong’.
• To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
• To remain one of the best banks in Bangladesh in terms of profitability and assets 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 risk).
•  To maintain adequate liquidity to meet maturing obligation 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.

Growth of Jamuna Bank: 

The Bank undertakes all types of banking transaction to support the development of trade and commerce of country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. 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 field of trade, commerce and industries.

The bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The management of the bank constantly focuses on understanding and anticipating customer needs. 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 Eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

Services

Since the commencement of banking operation. The Jamuna Bank Limited (JBL) has not yet only gained enormous popularity but also been successful in mobilizing deposit and loan products. The bank has made significant progress within a very short time period due to its dynamic management and introduction of various consumer-friendly loan and deposit products.

Jamuna Bank offers different types of Corporate and personal Banking Services involving all segments of the society within the preview of rules and regulations laid down by the central bank and other regulatory authorities. The bank gives special emphasis on export, Import, trade Finance, and SME Finance to woman entrepreneurs.

All the products and services offered by the bank can be classified under three major heads:

Deposit Schemes:

• Saving Account
• Current Deposit Account
• Fixed Deposit Receipt
• Short Term Deposit
• Monthly Savings Schemes (MSS)
• JBL Special Schemes

Credit & Loans:

• Loan General Customer
• Consumer Credit Scheme
• Personal Loan for Women

Foreign Currency Account:

• Resident Foreign Currency Account
• Non- Resident Foreign Currency Account

Small & Medium Business:

• Cash Credit Hypothecation ( CC hypo)
• Cash Credit Pledge ( CC Pledge)
• Secured Overdraft
• SOD against Work Orders

Large Business:

• Short Term Industrial Loan
• Mid term Industrial Loan
• Long Term Industrial Loan
• Transport Loan
• Lease Finance
• House Building

Foreign Trade:

The Jamuna Bank Limited (JBL) provides solutions in the fields of international business and trade finance.

• Letter of Credit (L/C)
• Back to Back Letter of Credit (BBT)
• Loan Against Trust receipt (LTR)
• Loan Against Imported Merchandise (LIM)
• Packing Cash Credit (PCC)
• Export Development Fund (EDF)
• Payment Against Document (PAD)
• Bank Guarantee

Sections of General Banking

During my practical orientation in Jamuna Bank Limited, Foreign Exchange Branch, it came to the observation that general banking section is divided with four areas. These are:

• Account opening, Mail receive & Dispatch section
• Remittance section
• Bill and Clearing section
• Cash section
• Accounts section
• Q-Cash section

Account opening

One of the vital sections under general banking is the account opening section. Banker customer relationship begins through this section. Various tasks are performed in this section. Such as:

• Opening of different types of account.
• Issue of cheque books.
• Transfer & Closing of account.
• Enquiry of account.
• Checking the signature of the client.

Various types of account offered by Jamuna Bank:

Jamuna bank offers various types of account to its different types of customer. These are as follows:

• Current deposit (CD) Account.
• Savings bank (SB) Account
• Short-term deposit (STD) Account.
• Fixed deposit (FDR) Account.

Accounts based on Nature of Customer as under:

• Single/individual Account
• Joint individual Account
• Sole trader/ proprietorship Account
• Partnership Account
• Company Account etc.

Current deposit (CD) account:

A current account an account, which is generally, opened by business people their convenience. A current account is a running and active account, which may be operated upon any number of times during a working day. There is no restriction on the number & amount withdrawals from current a/c. It does not earn any interest.

It has the following prospectus:

• Opening Amount/ Initial Deposit    1000
• Service charge     800
• Minimum Balance Requirement     1000

Savings bank (SB) account:

This deposit is intendent primarily for small-savers. The main object of this account is promotion of thrift. Saving account is meant for those who want to save a certain amount of their income and earn interest on that for future needs. All features are more or less like that of CD a/c expert for some restriction on that is imposed by the bank. Number of withdrawals over a period is limited. This A/C mainly opens on person name.

SB account has the following prospectus:

• Opening Amount/ Initial Deposit 1000
• Service charge 600
• Minimum Balance Requirement 1000
• Interest rate 6%
• One cannot withdraw money more than two times in a week.
• The withdrawing amount is not exceeding 25% of the total balance.
• If customer withdraws money, more than twice in a week than no interest is given to customers on his account.

Short-term deposit (STD) Account

It is a deposit account open by customer deposited money for short period. Customer can

Draw money after giving short notice. This account holder enjoys the same facilities of CD a/c including receiving interest on his deposited money. Interest rate of STD is less than the interest rate of SB account.

STD account has the following prospectus:

• Opening Amount/ Initial Deposit      50000
• Service charge     100
• Minimum Balance Requirement     50000
• Interest rate    6%

Fixed deposit (FDR) Account

In this category are included the deposit with the bank for a fixed period which is specified at the time of making the deposits. A fixed deposit is repayable on the expiry of

a specified period, chosen by the depositor to suit his purpose and to enable him to get back money as and when he needs it. The fixed deposit may be made for 03 months, 06 months, 1 year, 2 year or 3 year. As the date of repayment of fixed deposit is determined in advance, the banker need not keep more cash reserves against it and can utilize such amount profitably. The banker therefore offers higher rate of interest on such deposits. Fixed deposit has grown in importance and popularity in our country during recent years. When a matured FDR is withdrawn, the principle amount along with the interest amount (Deducting 15% tax from the total) is paid to the client.

The rate of the interest and the terms of the Fixed Deposit Receipt are given below:

[More then5 core & less then 10 core. 10core and above.]

Various types of savings Schemes offered by Jamuna Bank:

Jamuna Bank offers various types of savings Schemes to its different types of customer. These are as follows:

Monthly Saving Scheme (MSS)

Savings is the best friend in your 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 you to save on a monthly basis and get a handsome return upon maturity. If you want to build up a significant savings to carry out your cherished dream, JBL MSS is the right solution. Depositors can take the advantage of this deposit scheme by depositing certain amount on monthly basis in 3, 5 or 10 year’s time.

Eligibility:

• MSS account can be opened at any Branch of JBL.
• For opening a MSS account, maintenance a savings account with JBL is required.

Marriage Deposit Scheme (MDS)

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 especially daughters. Parent 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 until 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 grows very fast at high rate of interest yielding a sizeable amount on maturity.

With this end in view JBL has introduce Marriage Deposit Scheme, which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity.

Eligibility:  

• Marriage Deposit account can be opened in the name of children below the age of 18-years along with legal guardian.
• For opening a marriage deposit account, maintenance a savings account with JBL is required

Lakhpati Deposit Scheme

To become a Lakhpati is a dream to most of the people of Bangladesh especially to the lower and lower middle class income group. We experience our expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan.

Keeping the above in mind JBL has introduced “Lakhpati Deposit Scheme” which has flexibility in report of maturity and monthly installment as per affordable capacity.

Millionaire Deposit Scheme

It is a dream for many small savers to become a Millionaire. The word ‘Millionaire’ is really exciting. This dream can be a reality if you have a calculated plan and strong determination. JBL has introduce “Millionaire Deposit Scheme” which has flexibility in respect of period and monthly deposit as per your affordable capacity for giving some of Tk.1.00 (one) million i.e. Tk.10 (ten) lac at a time.

Eligibility:

• Millionaire Deposit account can be opened at any Branch of JBL
• For opening a millionaire deposit account, maintenance a savings account with JBL is required
• Customer can deposit monthly installment through any of our online branches
• Under standing instruction system, Customer can deposit money automatically his accounts.

Kotipoti Deposit Scheme:

To become ‘Kotipoti’ is simply a dream for the most of the populace of Bangladesh. It is realizable for high income group who have strong determination and savings habit. If you decide and plan to save money from   your regular income, you can own Tk.1.00 core easily by making a planned savings. In this regard, JBL has introduced “Kotipoti Deposit Scheme” offering the savings plan fit to your income and to execute your dream to be a Kotipoti by monthly deposit at your affordable capacity. You can take advantage of the “Kotipoti Deposit Scheme” from JBL and plan for your golden future accordingly.

Eligibility:

• Kotipati Deposit account can be opened at any Branch of JBL.
• For opening a Kotipati deposit account, maintenance a savings account with JBL is required.

Education Saving Scheme: 

Education is a basic need of every citizen. Every parent wants to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should be pre-arrangement of fund to ensure higher education of 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, JBL has introduced ‘Education Savings Scheme’ which offers you an opportunity to build up your cherished fund by monthly deposit of small amount 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 the principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Eligibility:

• Education Savings account can be opened in the name of children below the age of 18-years along with legal guardian.
• For opening an education savings account, maintenance a savings account with JBL is required.

Monthly Benefit Scheme (MBS)

Jamuna Bank Limited 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. You can plan your monthly expenditure with the certain monthly income under the scheme.

Eligibility:

• Any person having age of above 18-years can participate in this scheme through opening a savings or current account with any branch of JBL
• Customer must be Bangladeshi Nationals/Citizen.
• Persons below 18-years of old may open this account with his/her legal guardian

Double/Triple Growth Deposit Scheme (DGDS):

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

Eligibility:

• Any person having age of above 18-years can participate in this scheme through opening a savings or current account with any branch of JBL
• Customer must be Bangladeshi Nationals/Citizen.
• Persons below 18-years of old may open this account with his/her legal guardian

Documents to be obtained for different types of account:

When anyone comes to open an account, he has to submit some documents to be banker. Different types of document needs for different customer. Some common documents require for all types of account are:

• Introduction recommendation.
• Specimen signature card.
• Account opening agreement form.
• Two copies of photograph of account holder and copies of nominee.
• Deposit slip book.
• Chequebook requisition slip.
• Letter of mandate authorization another person to operate the account on behalf of the account holder.

Certain types of documents are needed for special customers. These are:

Proprietorship account:

Documents require Proprietorship business to open an account are:

• Introducers with account number.
• Valid trade license from city Corporation, attested copy should be submitted.
• Tax Identification Certificate.
• Nationality Certificate from local authority.

Partnership Account:

Documents to be obtained for opening account to open Partnership firm are:

• Trade license or board resolution.
• Deeds of partnership signed by all partners.
• Two copies photograph of each partner.
• Partnership resolution signed by all partners to open account.
• Resolution must indicate authorized person who operates the account.

Limited Company account:

Document required for limited Company accounts to open an account are:

• Mandatory and articles of Association of Company.
• Resolution of Board of Director.
• Certificate of incorporation.
• Certificate of commencement of business in case of public limited company.
• List of Director.
• Two copies of passport size photograph of account operators.
• Others: name directors with signature, minutes of board of director.

Different Types of Cheque:

A cheque is a very important document. A cheque is an instrument in printed form containing an unconditional order, signed by the account holder directing a certain person to pay a certain some of money only to or the order of a certain person or to the better of the instrument.

Types of cheque:

• Bearer Cheque.
• Order Cheque.
• Cross Cheque.
• Other Cheque.
• Market Cheque.
• Travelers Cheque.
• Stale Cheque.
• Anti-Dated Cheque.
• Post-Dated Cheque.

Remittance Section:

The major function of commercial Banks is fund mobilization of fund. Other than this, banks provide supplementary services to its clients. Clients need to remit money from one place to another for their business or other purposes. Banks fulfill this need of customers by means of remittance service. Money can be remitted domestically or internationally, which known as local remittance and foreign remittance.

There are three ways of transferring fund domestically. The modes of transferring funds are:

• Pay-Order (PO).
• Demand Draft (DD).
• Telegraph Transfer (TT).
• Mail Transfer (MT).
• Online Transfer.

Payment Order / Pay Order (PO)

This is an instrument issued by the branch of a bank for enabling the customer/ Purchaser to pay certain amount of money to the order of a certain person/firm/organization/office within the some clearing house area of the pay order-issuing branch.

Characteristics of P.O

• The issuing branch and paying branch are same.
• Application for payment within the clearing house area of the issuing branch.
• This may be open or can be crossed.
• No charge for issuing pays order for account holder.

Issuing of a Pay Order

The steps of issuing pay order to be followed by the clients and the bank

• Obtain P.O. application from duly filled in and signed by the purchaser/application.
• Receive the amount in cash/transfer with commission amount.
• Issues pay Order.
• Enter in pay Order register.

Refund of the Pay Order

The following procedures are as follows:

• For cancellation of PO, clients submitted a written request attaching Original Pay order.
• Officer verified clients’ signature from the original application form on record.
• Authorized permission is to be obtained before refunding amount.
• Cancellation charge is recovered form the applicant. Only the draft amount is refundable but no refundable commission charge, postage charge, etc.
• Finally, officers give Cancelled sill in front of PO under proper authorized sign and crossed with Red link pen and they kept at a ticket.

Demand Draft (D.D)

This is an instrument through which customer’s money is remitted to another person/firm/organization in outside the clearing house area from a branch of one bank to an outstation branch of the same bank or to a branch of another bank (with prior arrangement between that banks with the issuing branch). DD is an order instrument in which the issuing branch gives instruction to the payee/drawer branch to pay certain amount of money to the order of certain person/firm/organization. Commission, vat and postage are charged on issue of DD entries for issuing DD.

Example: – To transfer money from Chittagong to Dhaka.

Issuing of Demand Draft (D.D):

• Obtain D.D. application from duly filled in and signed by the purchaser/application.
• Receive the amount in cash/transfer with prescribed commission and postage amount.
• Issue the D.D. duly in and signed by the authorized officer.
• Insert test number (where applicable).
• Enter in the D.D. issue register.
• Issue advices to the payee branch.

Issuing for payment of Demand Draft (D.D)

• Telephonic confirmation.
• Examine the D.D. by verifying the signature, test number, serial number etc.
• Enter the D.D. payable register.
• Verify with the IBCA number.
• Pass necessary vouchers.
• Debiting suspense A/C and payment.

D.D. Cancellation

When officers cancelled the D.D., they have done some formalities as following:

• Application with original instruments
• Verified signature
• Cancellation change recovered with their registered book
• Confirmation about issuing of D.D.
• Entry the issue registered book and making on it
• Cancel the D.D. and attach with Debit voucher
• Passing the vouchers
• Prepared Debit advice
• Signature on Advice and sent to paying Branch.

Telegraphic/ Telephonic Transfer (T.T)

This is a mode of transfer of customer’s money from a branch of one bank to another branch of the same bank through telegraphic/telephonic message. The issuing branch used to send the message of such remittance through telegraph/telephone adding certain code number or test number on the basis of test key apparatus developed by the concerned bank for its different branches. The drawer and the payee are required to have account with the bank in order for this transaction to take place. TT is issued against cash, check, letter of instruction etc.

Characteristics of TT

• Issued by one branch to other branch and message is tale-communicated.
• Remittance/ transfer of money are done through tested tale-messages.
• Remittance is affected on the basis of tested message.
• Test key apparatus is required.
• No charge for issuing pays order for account holder

Issuing of TT

When TT was issuing, some of steps are as followed:

• Obtain D.D. application from duly filled in and signed by the purchaser/application with full A/C particulars of the beneficiary.
• Receive the amount in cash/transfer with prescribed commission, telephonic/telex and postage amount.
• Prepare the T.T. massage inserting the test no.
• Enter in the T.T. issue register.
• Issue advices to the payee branch.

Payment of TT

When TT was Payment, some of procedures were following:

• Received Telegram
• Tested Test number
• Calculated Test
• Entry Passing Sill
• Vouchers prepared with test agreed sill
• Entry in the TT paying register with date
• A/C Payee Credited with IBCA number
• Note the massage the T.T. by verifying the signature, test number, serial number etc.

Cash Section

Cash section is an important section where cash transactions are made. Cash sections demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid money. Maximum concentration is given while working on this section. Tense situation prevails if there is any imbalance in the cash account. There are various systems maintain by cash officer that is under:

• Vault
• Cash Payment
• Cash Receive
• Transaction after banking hour.

The cash department is the riskiest department of the bank. This is the section where tight security is required to avoid any accidents. There is a limit to be amount of cash that each counter can carry; carrying of excess cash is avoided for safety reasons. If there is any surplus in the  cash then excess amount should sent to the Bangladesh Bank or if there is any shortage in the cash then the  shortage amount should be borrowed by the bank from

Bangladesh Bank or from the head office or other banks.

Cash Receipt

When clients deposit cash in the bank, the bank officer on receipt of the cash and the pay in slip/credit voucher shall:

• Check and count the received cash.
• Make sure that the amount in word and number in the deposit slip are same.
• Check the account title and the number.
• Both the deposit slip is in order.
• Depositor’s signature is in the slip.
• Receive seal in the slip is a must.
• Write the domination of the currency at the back of the pay in slip or the credit voucher and affix stamp in the slip/voucher.
• Enter particulars of in slip/credit voucher in the receiving cash officer book.
• At least, send the pay in slip/voucher to the deposit department or to the respective department.
• Deposit slip must be signed by the respective officer.
• Carbon copy of the deposit slip must be handover to the client with proper seal and signature.

Cash Payment

Cheques, demand drafts, pay orders, pay slips and debit cash vouchers etc. are received from various departments for payment of cash to customers/payees. Prior payment of cash it is the officer’s duty to make sure that the cheque/or the instrument has been genuinely passed. The following common precaution is thoroughly practiced before honoring a cheque:

• Check of it is an open or crossed check.
• The branch name in the cheque.
• The date in the cheque is very crucial. Cheques are normally valid six months and pre-dated cheques are asked to present after the date given.
• Tk in words and figure of the cheque is same.
• Balance in the account is available.
• The apparent tenor of the cheque. Whether any figure, date or anything has been altered in the cheque presented. If any, then the respective officer must check whether the client is making his signature for alteration or not.
• The specimen card signature and signature in the cheque should match.
• Signature of recipient is obtained on the reverse of cheque.
• In case, where a prior arrangement has been made with the bank, a client may overdraw against a cheque.

Books maintained by cash department:

• Vault Register: In this book the amount of cash available in the branch is maintained. That is, the amount in the vault register book.
• Cash Receive Register: This register keeps record of all incoming cash.
• Cash Payment Register: Similar to the cash register book, this book keeps tracks of all outgoing cash that is all payments.
• Daily Cash Balance Register: This is the book where cash balance is recorded by counting the notes and coins that are physically available. The balance in this book is compare with the vault register, which should be the same. In case there is an error, then the figures would not match but if no discrepancy is found then anything is to be worried about.

Other Register:

• Money remittance registers.
• Prize bond registers.
• Stamp in hand registers.

Cash section has to automatic machine:

• Money counting machine: With the help of this machines, officers, can easily count the money. It save time and provide accuracy.
• Money detector machine: This machines help officer to find out the fake money.

Bills and Clearing Section

Clearing and bills section is an important section of General Banking. This is the section through which branch has to clear it’s inter branch and inter bank transaction. Customers do pay and receive the collecting branch the system is known as IBC.

Clearing:

As far as safety is, concerned customers get crossed cheque for the transaction. As we know crossed cheque cannot be encased from the counter, rather it has to be collected through banking channel i.e. clearing. For example, a client of Jamuna bank received a cheque of another bank, which is located within the clearing range. Deposit the cheque in his account at Jamuna Bank. Now jamuna Bank will credit his account and collected it. Though the amount is credited in the customers account but he will not get money until his cheque is honored.

Types of Clearing:

• Outward Clearing: Outward clearing means when a particular branch receives instrument drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.
• Inward Clearing: When a particular branch receives instruments which on them and sent by other member bank for collections are treated as inward clearing.

A clearing house may, therefore, be defined as an organization of barks constituted for the purpose of settling inter-bank liabilities due to transfer of deposits by a customer of a particular bank to that of another bank.

Clearing house

The growth of banking habits among the people has led to greater use of cheque facility by them. The number of banks and their offices are also constantly on increase. Every bank receives daily hundreds of cheques, drafts etc., on other banks. One method of collecting the money of such cheques, drafts etc. are to send an official to every drawer bank. This method is bound to prove costly and tedious. The other alternative is to fix a common place where officials of different banks may meet daily to settle interbrain claims. Such a method is simple and convenient since it does not involve unnecessary traveling and actual handling of cash. The common place so fixed is termed as banker’s clearing house.

Procedure of Clearing House

The mechanism of working of a clearinghouse in general is as follows:

• Every bank of the locality, which is a member of the clearinghouse, prepares a bank-wise list of cheques received from customers and drawn on different banks of the locality.
• An official of each bank visits the clearinghouse with the cheques and their list in the morning. He delivers the cheques to the officials of the respective banks. Similarly, he also receives the cheques drawn on his bank from the officials of the other banks.
• The officials return to their respective banks to meet again in the afternoon to return any dishonored instruments to the officials of the respective banks.

The final settlement is effected by the supervisor of the clearinghouse by debiting or crediting, as the case may be, the accounts of the respective banks as maintained with the clearinghouse.

Outward Bills for Collection (OBC):

Customers deposit cheque, drafts etc. for collection, attaching their deposit slip. Instruments within the range of clearing are collected through local clearinghouse. But the other, which is outside the clearing range, is collected through OBC.

As this branch, I saw the procedures of outward clearing, these are the following process:

• Collect the cheque and giving branch crossing sill
• Then A/C payee endorsement sill with clearing sill
• Then Officers sign and 2^nd branch in charge sign
• Then posting for outward clearing

Inward Bills for Collection (IBC)

In this case bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill. Next steps are:

• Entry in the IBC register, an IBC number given.
• The instrument is sent to clearing for collection.
• An IBC is dispatched in this regard. If dishonored in this case the instrument is returned to the collecting branch along with return Memo indicating the cause of dishonored.

Functions of General Banking

The functions of general banking department are as follows:

1. Maintenance of Deposit accounts included:

• Saving Accounts (SB).
• Secured over Draft (SOD) Accounts.
• Receipts & payments of cash.
• Current Deposit accounts (CD).
• Others saving Schemes.
• Cash Credit (CC Hypothesis) Accounts.
• Fixed Deposit Receipt (FDR) Accounts.
• Short Term Deposit (STD) Accounts.

2. Receipt & payment of cash.
3. Opening different types of accounts.
4. Handling transfer transactions.
5. Operations of clearing house.
6. Maintenance of accounts with Bangladesh Bank & other banks.
7. Collection of Cheques.
8. Issue and payment of Demand Drafts, Telegraphic Transfers and Payment
9. Maintenance of Internal Accounts of the banks.
10. Reporting to head office about weekly position.
11. Saving all transaction record in computer.
12. Closing and transfer of different types of accounts.
13. Keeping good relation with valued customer.
14. Providing necessary support to the customers.
15. Maintenance of safe deposit Lockers.

Dispatch & mail Receive Section

The main function of dispatch division is dispatching all types of documents such as OBC, IBC, LBC, and different types of letter, different advice Also dispatch division receives letter and documents, which are may be come from the different branches of JBL, other banks, negotiation and opening bank(incase of export and import) in the name of Jamuna Bank Limited.

The staff involve with dispatch division maintain two types of mail, which is Inward mail & Outward mail.

Inward mail: When staff receives any letter or documents from out side of the branch then he done following function, which is arranged at sequentially:

• First put receive seal on the letter or document

• Put a serial number

• Register in the inward book with receiving date.

Outward mail: When it is necessary to dispatch any types of letter or document outside of the Dilkusha branch the dispatch staffs done following job, which are, arrange sequentially:

• Put serial numbers

• Register on outward mail register book with date.

Outward dispatch is done in by courier service: Courier services are used when documents or letters dispatch to other branches of Jamuna Bank Ltd. It has been seen that courier services payment has made by monthly basis.

Islamic Banking

Jamuna Bank has started its Islamic banking, based on the principle of Islamic shariah. It has opened two Islamic banking branches at Nayabazar, Dhaka and jubilee road, Chittagong, more Islamic branches are planned to be opened. To conduct the Islamic banking of JBL, a shariah board comprising eminent Islamic thinkers and intellectuals of the country has been formed.

Correspondent Banking Relation

To provide clientele services in respect of international trade, it has established banking relationship with 641 correspondent banks in 107 countries covering major trade and financial centers at home and overseas.

Growth index and Future plan:

• Dealing room service for corporate customers and high net worth individuals.
• Introducing more innovative product and services.
• Opening new branches including Islamic Banking.
• Expansion of business network at home and overseas.

Special Services:

Consistence with the modern age and competing in a perfectly competitive market, the Jamuna Bank Limited (JBL) has introduced some innovative banking services that are remarkable in a country like Bangladesh.

The services offered by the Bank are as follows:

ATM Service

The bank has joined the shared ATM Network Bangladesh with a pool of seven banks. The client of any bank will have access to any ATM situated at different locations of Dhaka city. This banks client will get 24 hours cash withdrawal and utility bills payment facility. 16 ATMs will be installed gradually in Dhaka city and the network will be extended to other cities of the country in the near future.

Credit Card

To provide best possible customer services to its clients, the bank is going to lunch Master Credit Card shortly.

Money grams:

Money gram is one of the innovative products of the bank. This has been functioning satisfactorily and rendering promote and efficient services to the wage earners.

SWIFT:

Jamuna Bank Limited is the member of SWIFT (Society for Worldwide Inter-Bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transactions such as letters of credit, fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150countries around the world.

Management Structure of Jamuna Bank Limited:

JBL has a tall management structure where the span is long and it is centralized. The banking decision is mainly determined by the chairman, board of directors, chief advisor (appointed by the bank) and the managing director of the bank. The managing director and senior executive vice president (SEVP) control all of the branches of Jamuna bank Ltd. Under their supervision, the branches are operated by the executive vice presidents who have a direct relation with the higher authority. Thereafter senior vice presidents (SVP) come. First vice president (FVP) work under SAVP and need to access to the authority him. Similarly, assistant vice president (AVP) works under the former ranked officer. In this way, the officers work chronologically in supervision of the higher authorized officer.

SWOT analysis of Jamuna Bank Limited

STRENGHTS

• Experienced top management.
• Satisfactory capital base.
• Prospective IT infrastructure.
• Full Network all branches.
• Diversified product line.
• Strong liquidity position.

WEAKNESSES

• Limited market Share.
• Low infection in loan exposure.
• Excessive dependency on term deposits.
• Weak fund management.
• High cost of fund.
• Islamic Branch funds are not ring fenced.
• Assets infection rate is still high.
• Limited branch.

OPPORTUNITIES

• Regulatory environment favoring private sector development.
• Credit Card & ATM card business.
• Small and Medium Enterprises.
• Private sector development.
• New product development.

THREGHTS

• Increased competition in the market for quality assets.
• Supply gap of foreign currency.
• Government rules and regulation.
• Overall liquidity crisis in money market. Market pressure for lowering the interest rate.

Financial Information of JBL:

Profit analysis

In 2008 Jamuna Bank Limited posted an operating profit of Tk.1040.20 million as against Tk.824021million in 2007 with a spectacular growth of 26.21 percent over the preceding year. After having made necessary provisions for loans and advances Tk5. 174.39 million in accordance with the instructions of Bangladesh Bank Net Income before Tax (NIBT) stood at Tk.865.82 million in the year under review against Tk.405.04 million in the preceding year registering a growth of 37.62 percent. An amount of Tk. 382.05 million has been kept as provision for payment of Tax. Thus Net Income after tax and provision stood at Tk.479.44253.40 million in 2008 which was Tk.89.11199.82 million in 2007.

CAPITAL STRUCTURE

Jamuna Bank Limited has a conviction of maintaining a strong capital base in carrying on operate operation on June 03, 2001 with a paid-up capital of Tk.390.00 million divided into 3.90 million o of Tk.100 each. The authorized capital of the Bank is Tk.1600.00 million 2007. It increased and stood at Tk.4000.00 million divided into 40.00 million ordinary shares of Tk.100 each. The Bank’s paid-up capital as at 31^st December 2008 stood at Tk.1313.27 million. Tk 429.00 was raised through initial public issue of 4.29 million ordinary shares of Tk100 each with a premium of Tk.20.00 each while Tk.214.50 million was raised by issue of Bonus Shares in the ratio of 1:4. Thus, as on 31^st December 2008, the total shareholder’s equity and reserve stood at Tk.2160.73 million and total bank capital stood at Tk.2444.34 million.

Deposit and Deposits Mix

In commercial banks operation, starts with mobilization of resources i.e. trapping of deposit and then the resources are deployed as loans, advances and investments for the purpose of maximizing wealth which means deposits have dominance in commercial banks operations. That is why there is a common saying that deposit is the lifeblood of a bank. In keeping with this axiom, JBL attaches utmost importance to the deposit mobilization campaign and to the optimal deposit mix for minimizing COF as far as practicable. A stiff competition in the market as to the deposit mobilization and there was a pressure on interest rate. Dispute all this unfavorable factors JBL was able to instill confidence in customer as to its communities of the depositors and borrowing customer thereby could mobilize  a total  deposit of Tk.2530.94 million in 2008 against that of Tk.20924.02 million in the preceding  year showing an increase of Tk.6383.92 million being 30.51 percentage.

Financial Highlights

HIGHLIGHTS OF JAMUNA BANK LIMITED (Amount in Taka except Ratio)

Findings

During internship period in Jamuna Bank Limited at Foreign Exchange Branch, following problems are identified.

• Human resource of any organization is considered as a valuable asset. But human resources, in the branch, are not equipped with adequate banking knowledge. Majority of the human resources have lack of basic knowledge regarding money, banking finance and accounting. Without proper knowledge in these subjects, efficiency cannot be optimized.

• There is shortage of computer in general banking section. Sometimes the shortage of computer makes some unfortunate event in that section.

• Though JBL using very popular software i.e. Flora bank on–line software but the use of it is quite difficult for the employees. (According to the statement of some employee _of JBL, who has the experience to use more then one banking software).

• JBL are not taking their clearing cheque for other- They are using IBC/OBC systems to take that kind of clearing cheque.

• JBL not providing the credit cards in market which now a days one of the most important part of banking. So for it they are loosing too many customers.

• I have found that most of the employees are not satisfied with their salary, most of them think that they are not getting proper salary comparing with other banks.

• The capital of Jamuna Bank is not enough to serve properly. Even not to provide loan for consumer.

• Customers are not fully satisfied with the service of Jamuna bank. Since a number of new banks are coming to existence with their extended customer service pattern in a completely competitive manner.
• In our country financial problem is a great constraint in foreign trade. JBL Is very conservative for post-shipment finance.

• Now a day is on-line banking is a very common service for private commercial bank.

JBL, provide On-line banking service but they take source charge for it, if the customers do not use his/her mother branch.

Conclusion

A modern commercial banking perspective is extending business. The rewards are modest; the penalties for bad looking are enormous. Moreover, commercial banks are great monetary institutions, which can play a significant role in welfare of society and country more than any other institutions. JBL has gained firmed confidence in the minds of customers within a short period of its operation. Analyzing the whole scenario, which are tried to highlight in this report, we can conclude that, the performance of Jamuna Bank Ltd. is quite satisfactory but there is stillroom for improvement. Understanding this present competitive market pressure the Bank Management should start some special new services to survive in this competitive market. JBL is a new generation bank. It is  committed to provide high quality financial services to contribute to the growth of G.D.P. of the country through stimulation trade & commerce, Accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country.

In would not appropriate to draw any definite conclusion right now. So the result of the should be taken as inactive rather than conclusive. During the three-month internship program in JBL, Foreign Exchange branch, almost the entire all desks have been observed more or less. In fact, it has been arranged for gaining knowledge of practical banking and to compare this practical knowledge.

In the internship, it is found that the branch provides all the conventional banking services as well as same specialized financing activities of the economy. General banking is engaged in cash receipt and cash payment, opening account, clearing cheque, pay order issue, ATM card issue, outward etc. the amount of deposit and savings account in the Foreign Exchange branch is very high because Foreign Exchange is most powerful branch of Dhaka city.

From learning   and experience point of view, I can say that I enjoy my internship at JBL from the very first day. I am confident that this three-month internship program at JBL will definitely help me to build up my carrier in the banking sector.

Recommendations

Based on the evaluation of different aspects of JBL, the following  recommendations have made:

Organization van work 100% accurately. They must face some problems. Similarly, the Jamuna Bank as a commercial institution faces some problems to give customer service. To overcome this problem, the banks can employee professional analysis by using customer analytical tools.

• JBL authority should train up their HR personnel, so that they can get a clear idea about banking knowledge

• There should be adequate number of computer to serve the general service to the customers. Employees should be more expert & trained to use the Flora software.

• JBL’s clearing should be properly online. Credit card should be available for the general customers of JBL.

• Salary structure should be revised for the satisfaction of the employees comparing with the other commercial private banks.

• Capital structure should be stronger to serve properly.

• Foreign exchange operations of other banks are more dynamic and less time consuming. JBL should take some initiative to compete with those banks.

• To encourage customers to use On-line banking facility this service charge should not be taken charge from the customers.

• Customer service of bank has a greater impact on its customer. To provide smarter customer service they need a call center department is very popular now a day.

• Jamuna bank can introduce some new schemes for their consumers like student saving account, Hajj scheme, etc.

• JBL should have to improve their financial condition so that they can provide consumer loan, such as: can loan, house loan, education loan etc.