General Banking of Janata Bank Limited

The main purpose of this report is to analysis the General Banking and overall activities of Janata Bank Limited. Other objectives are to get clear idea about different departments are interrelated with them and to know about Branch level General Banking Activities. Finally discuss on SWOT analysis and find out problems and give recommendation to solve.

Background of Janata Bank Limited:

Janata Bank Limited established as the immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15^th  November, 2007 the bank has been corporatised and renamed as Janata Bank Limited & operates through 864 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world.    From the very inception, it was the firm determination of Janata Bank Limited to play a vital role in the National economy. They are determined to bring back the long forgotten taste of banking services and flavors. It wants to serve each one promptly and with a sense of dedication and dignity. The emergence of Janata Bank Limited in the Government sector was an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, the government took the farsighted decision to allow the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country. Janata Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. JBL has been flourishing as one of the largest private sector Bank with the passage of time after facing many stress and strain. The members of the board of directors are creative businessmen and leading industrialists of the country. To keep pace with time and in harmony with National and inter-National economic activities and for rendering all modern services, JBL, as a financial institution, automated all its branches with computer networks in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future, the infrastructure of the Bank has been rearranging. The expectation of all class businessmen, entrepreneurs and general public is much more to JBL.

Janata Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the nationalized sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank within a period of 40 years of its operation achieved a remarkable success and met up capital adequacy requirement of Bangladesh Bank.

Janata Bank Limited is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at Janata Bank, customer is always at the center.

Since its inception, the bank was aware of complying with Corporate Social Responsibility. In this direction, we have remained associated with the development of education, healthcare and have sponsored sporting and cultural activities. During times of natural disasters like floods, cyclones, landslides, we have extended our hand to mitigate the sufferings of victims. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It also provided financial assistance to the Asiatic Society of Bangladesh at the time of their publication of Banglapedia and observance of 400 years of Dhaka City.

The Transparency and accountability of a financial institution are reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, JBL was awards “World’s Best Bank Award-2009 in Bangladesh”.

Mission and Vision Statement of Janata Bank Limited:

Mission:

Janata Bank Limited will be an effective commercial bank by maintaining stable growth strategy, delivering high quality financial products, providing excellent customer service through an experienced management team and ensuring good corporate governance in every step of banking network

Vision: 

To become the effective largest commercial bank in Bangladesh to support socio-economic development of country and to be a leading bank in South Asia.

General Banking:

General banking is all about the combination of different departments and the activities performing in banking operation.  Basically it shows how department helps to collect money from the one client and lend to the other client and to do so it has distinctive goal as well as objective. Always they try to fulfill their target what actually given by top management to accomplish touch overall goal of the bank through their branches.  Each and every section of the branch is interrelated with other one not having to be any wrong. So it’s not headache only that section which has something wrong, it has to be carried every section. As well, all sections are ready to help each other to perform their activities.  The department tries to create interest in customers’ mind through why they would come in the bank and what would be the advantage behind this. People are getting interested to deposits in the bank to match time value of the money and have security as well as withdraw their money based on demands and needs by paying cheques. To be principal instruments interest security and different services play as vital role to attract the customers.  In fact, there is no relation between banker and customers except transaction related activities.  And that’s why banker always tries to provide best and unique opportunity to the customer through superior services rather to other banks to hold them. Therefore different activities like cheque, pay order issue, local, foreign remittance, funds, account opening etc are carry out by the departments.

General Banking consists of the different sections in the branch. These are:

Customer Service, Account Opening/Closing, Remittance, Deposit Department,   Account Department, Cash Department etc.
Customer Services:

In the branch different sections are ready to give the services which are the ultimate solution of the customers. Any information, if customer wants to know, he or she can get it either phone or coming in the bank. But by phone all information is not provided due to maintain security. Normally what amount of money in their (customer) account, to open an account what should be followed, when can be taken cheque book and deposit book, what the condition of interest rate, how money can be transferred to other bank etc. This type of services bank provided to the customer. People always want to get the customer service as early as possible. JBL wants as fast as possible they will offer the services to the customer rather than other banks  holding own position and go forward more by superior services through smiling face as well as well behaving what they need. Sometime which facilities (products) have been come in new way for the customers and helpful are informed. To develop customer service more, sometimes they are asked what their expectation to the bank about it is. If it is possible manager tries to add with customer service Therefore info provider has to be always spirited and active to provide just in time.  These services and account opening to provide executive officer basically is active in the REB Branch.

Services and Product:

At competitive market, to survive strongly is much more challenging and difficult. To hold own exultancy, JBL beside traditional services has launched new products and services through customization. Account opening to closing and different services of JBL what they provide is given below:

Account opening:

 To start the transaction permanently in a Janata Bank registration should be maintained which is account opening. Md. Tasul Islam Patawary (Executive officer) is always ready to provide this type of service By account opening one considered as own and loyal client to the bank. Therefore it wants to retain this customer for a long time providing superior services. To open an account some criterion client has to follow which helps to keep information about them to it. To open account in the Janata Bank they have different account form to registry in different name. Generally to open any account first of all collecting the form filling account holder’s name, father’ name, mother’s name, date of birth, citizenship, religion, present and permanent address and signature. Introducer’s approved should be mandatory and filling nominee’s information like A/C holder in the form. After this task he or she will be given a photocopy of voter ID card/valid passport/Nationality Certificate and three copies photographs (two for A/C holder and another one for nominee). Then officer will check it and give an A/C no. as well deposit book to deposit money in the A/C no. Then the respective officer inputs data into Easy Banking Software. Then he prints thanks letter for introducer and A/C holder and sends these letters in respective address to verifying addresses of introducer & A/C holder. After verifying A/C holder’s address the officer issue cheque books to withdraw money.

JBL (Janata Bank) focuses different importance to the different A/C. according to that the requirement varies.

Deposit Products:

Current Deposit Account: Current Deposit account is the most important for the bank. This A/C is opened by business people who are used to daily transaction for business purposes. People mostly maintain this A/C to have daily transaction in any time and for security. No interest is paid in Current Deposit Account due to any time withdraw from the bank and deposit to the bank. To open this account, there some rules and regulation which is controlled by Bangladesh Bank (Central Bank) have been maintained by Janata Bank (JBL). Below some criterions are give to open this A/C:

Current Deposit Account (Personnel):

• Collect an Account opening form from the Bank.
• Fill all the requirements of the form.
• Nominee is must be specified.
• Photograph is most important for any account two for holder and one for nominee (Except institutional A/C).
• To open this account the most important things is a photocopy of voter ID card/valid passport//Nationality Certificate issued by local govt. must have to add with the account opening form and also enclose the form 12 with the account opening form.

 Current Deposit Account (Sole Proprietorship):

• Signature Card.
• Photograph 3 or 4 for holder attested by introducer and 2 for nominee of signatories attested by A/C holder.
• Copy of valid Trade License.
• TIN Certificate.
• 18-A permission from Bangladesh Bank (for GSA & Agents only).

 Current Deposit Account (Partnership):

• Signature Card.
• Photography of signatories attested by introducer.
• Partnership Deed.
• Partners letter of authority to open account and authorization for operation.
• Copy of valid Trade License.
• 18-A permission from Bangladesh Bank (for GSA & Agents only).

Current Deposit Account (Limited Liability Company):

• Signature Card.
• Photograph of signatories attested by introducer.
• Copy of Memorandum and Articles of Association.
• Copy of Certificate of Incorporation and commencement of business.
• Copy of Board Resolution to open the account and authorization for operation.
• List of Directors and signatories along with addresses.
• Latest copy of From XII.

 Current Deposit Account (Association/Trust/Society):

• Signature Card.
• Photograph of signatories attested by introducer.
• Copy of Resolution of governing body to open the account and authorization for operation.
• Copy of consolation / bylaws/ rules.
• Certificate of registration.
• List of authorized signatories and members of the governing bodies along with address.
• Trust Deed (for Trust account only)

Saving Account: Saving account is quite different from Current A/C. Bank provide interest 5% at present to the client to maintain deposit in. Here, client can not withdraw his money any time as his wish. Some restrictions have to follow to withdraw money per week. People are more interested to open A/C for sending and receiving money from different source abroad and local as well getting interest and security. To open it here some rules what should be maintained:

Account Opening Procedure:

• Collect an Account opening form from the Bank.
• Fill all the requirements of the form.
• Nominee is must be specified.
• Photograph is most important for any account.
• The account holder sign of his/her own self in front or the specific bank principle Officer in the account opening form.
• To open this account the most important things is that Passport Photocopy or the Word Commissioner Certificate must have to add with the account opening form.

Fixed Deposit Receive (FDR):

This product is totally different from the other products current and saving account. Because in this case rules, regulation and other formalities are much lower. To have a fixed big amount of money in the bank and it is an agreement for non-withdraw before maturity period, risk is low.  People are more inspired to get huge amount of money after time period to have high interest. At present, JBL is offering up to 7.50~ 12.00% interest rate for various time period prefixed by JBL.

Account Opening Procedure:

• Collecting a form and fill up all the requirements of A/C holder.
• Nominee must be mentioned and related information also.
• Two copies passport size photograph one for holder one for nominee.
• Needed passport or /National ID card or commissioner certificate.

 Janata Bank Saving Deposit Scheme (JBSDS): Monthly saving scheme product brought to the welfare for the customers who call it as a Janata Bank Saving Deposit Scheme(JBSDS). Who doesn’t have the big amount of money to deposit at a time in the bank but want to get accumulated money with profit after a certain period of time, for them this opportunity is opened to deposit monthly in the bank. One can open this account more than one as well as jointly. Minority can open account with guardian. This product has a variation with different figure starting from 500 to 10,000 for 10 years like this:

Medical Deposit Scheme (MDS): some people want to open A/C short period of time. Based on this demand and expectation, JBL has brought Medical Deposit Scheme.  For two years or four years & six years there is excellent and attractive opportunity to deposit. Individually/Jointly can open this account. Minor can open this a/c with help of matured guardian. The pattern of the monthly income scheme is like this:

Education Deposit Scheme (EDS): This product offers to be normally a student in different years and with different figures of money. To get certain and bright future, Janata Bank has brought this product. It has 2, 4 and 6 years period wise saving facility benefit. To do so one can apply for more than one A/C. Jointly and with guardian below 18 can also open this account. It’s pattern like this:

• Foreign currency deposit:

Maintaining foreign currency account through its Authorized Dealer Branches Janata Bank Limited gives an opportunity. Bangladesh Nations residing abroad or Foreign Nations residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees can use this deposit service. For account opening two copies of recent photograph, nominee’s photograph, passport copy, ID of residence in abroad is required.

Benefits: No initial deposit is required to open the account; interest will be offered 1.75% for US Dollar account, 3.00% for Euro account and 3.25% of GBP account; interest provided on daily product basis on the credit balance (minimum balance of US Dollar 1000/- or GBP 500/- at least for 30 days) maintaining in the account.

• Account Closing:

For two reasons, one can be closed. One is by banker and other is by the customer.

By banker: If any customer doesn’t maintain any transaction within six years and the A/C balance becomes lower than the minimum balance, banker has the right to close an A/C.

By customer: If the customer wants to close his A/C, he writes an application to the manager urging him to close his A/C.

But in practice, normally the customers don’t close A/C willingly. At times, customers don’t maintain any transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it is closed by the bank.

Loans & Advances products:

Overdraft:

JBL offers overdraft facility for corporate customers for day to day business operations.

Benefits (Condition Apply)

• Low charges in overdraft account maintenance.
• Facility is available against deposit receipt or mortgage property.
• Low interest rate 10-14%.

Account Opening

• Introductory current account.
• Others necessary documents as per loan requirement.

Lease Finance:

Janata Bank Limited offers leasing facility for clients with easy installment facility.

Financing Area

• Capital machinery.
• Different equipments.
• Gas, Diesel generator and Power plant.
• Medical equipments.
• Lift or elevator.
• Information Technology equipments.
• Construction equipments.

Benefits (Condition Apply)

• Competitive monthly rental.
• Tax benefit.
• Fast processing.
• Easy handover after leasing period.

House Building Loan:

JBL offers home loan facility for purchasing flats or construction of house.

Benefits (Condition Apply)

• Financing amount extends up to 70% or Tk. 75,00,000 which is highest of total construction cost.
• Grace period available up to 9 months in flat purchase or 12 months in construction.
• Competitive interest rate.
• No application or processing fee.

Eligibility:

Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan.

JBL offers financial support to small businessmen/enterprise with new products named “JBL Small Business Loan” has been introduced in the Bank.

Benefits (Condition Apply)

• Minimum Tk.1.00 lac and Maximum Tk.5.00 lac (Small Business Scheme).
• 3 Months and 4 years (including 1 month grace period (Small Business Scheme))
• Collateral Free Advance.

Eligibility

Any genuine and small businessmen/ entrepreneurs/enterprise having honesty, sincerity, and integrity.

Consumer Durable Loan:

JBL offers consumer credit facility for retail customers.

Financing items

• Electronics consumer products.
• Computer or Computer accessories.
• Education loan
• Professional loan
• Furniture or any household accessories
• Any purpose loan

Benefits (Condition Apply)

• Fast processing.
• Competitive interest rate.
• No application or processing fee.
• Easy monthly installment.

Trade Finance:

JBL provides comprehensive banking services to all types of commercial concerns such as in the industrial sector for export-import purpose as working capital, packing credit, trade finance, Issuance of Import L/Cs, Advising and confirming Export L/Cs. – Bonds and Guarantees.

Benefits (Condition Apply)

• Low interest rate 10.00%-14.00%.
• Minimum processing time.
• Low service charges.

Agriculture Loan:

JBL provides agriculture loan for poor farmers or landless farmers without any security for cultivation of seasonal crops, vegetable etc. JBL, REB Branch is the pioneer of agriculture loan in Bangladesh among all branches of JBL. From starting of REB Branch, it provides agriculture loan with very nominal interest rate. For economic year 2011-12 target of agriculture loan disbursement for REB Branch is Tk.3.00 Crore.  REB Branch disburses this loan among farmers as group basis.

Cards:

JBL provides two types of card facilities one is Q-cash (ATM) Debit and Credit card.

Credit Card:

JBL Credit Card is accepted in many merchant outlets around the world. Our wide range of merchants include hotels, restaurants, airlines, & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

Benefits (Condition Apply)

• Dual Currency Card Facility.
• Lowest Rate of Interest.
• Lowest Card Fees. Special Discount of Card Fee *** condition applicable.
• You can transfer 80% amount of your Local Card Limit to any JBL A/c or have Pay Order Facility.
• No Excess Limit Charge.
• No Hidden Charges.

Account Opening

• 2 copies of your recent photograph.
• Nominee’s Photograph.

Departments:

Remittance:

Remittance of funds is a very crucial service of JBL. It aids to remit fund from one place to another place on behalf of its customers as well as non- customers of bank. JBL has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another.

The main instruments used by JBL, local Office Branch for remittance of funds.

• Payment Order Issue/Collection
• Demand Draft Issue/Collection
• T. Issue/Collection
• IBC/OBC/LBC Collection.

Payment Order Issue/Collection:

The pay order is an instrument issued by bank, instructing itself a certain amount of money mentioned in the instrument taking amount of money and commission when it is presented in bank. Only the branch of the bank that has issued it will make the payment of pay order.

Issuing of Pay Order:

The procedures for issuing a Pay Order are as follows:

• Deposit money by the customer along with application form.
• Give necessary entry in the bills payable (Pay Order) register where payee’s name, date, PO no, etc is mentioned.
• Prepared the instrument.
• After scrutinizing and approval of the instrument by the authority, it is delivered to customer. Signature of customer is taken on the counterpart.

Different modes of PO when a customer can purchase:

By cash:

Cash ……………………………A/C Dr.
Bills payable (PO) ……………A/C Cr.
Income on commission………. A/C Cr.

S/D Vat on commission……….A/C Cr.

By account:

Customer’s……………………….. A/C Dr.
Bills payable…………………(PO) A/C Cr.
Income on commission…………… A/C Cr.
Settlement of A PO:

When PO submitted by collecting bank through clearing house, the issuing bank gives payment.

Bills payable (PO)……………. A/C Dr.
JBL General…………………. A/C Cr.

But before giving payment it is duty for issuing to observe whether endorsement was given by the collecting bank or not, then the instrument is dishonored and marking ‘Endorsement required’.

Cancellation of a Pay Order:

If a buyer wants to cancel it, he should submit a letter of instrument in this regard and also return the instrument.

Accounting treatment: Adjustment entry wills be-

Bills payable (PO) ……………..Dr.
Customer A/C…………………..Cr.

When PO is lost:

If the instrument is lost, the holder will inform to the issuing bank immediately. Bank will mark ‘stop payment’ on the Bills payable (PO) Register. Buyer will then ask for a new instrument by submitting a GD copy, and indemnity bond. A new instrument will be delivered.

Demand Draft (DD)Issue:

The person intending to remit the money through a Demand Draft (DD) has to deposit the money to be remitted with the commission which the banker charges for its services. The amount of commission depends on the amount to be remitted. On issue of the DD, the remitter does not remain a party to the instrument: i) Drawer branch ii) Drawee branch iii) Payee. This is treated as the current liability of the bank as the banker on the presentation of the instrument should pay the money. DD will be paid only by the drawing branch or paying branch. The banker event on receiving instructions from the remitter cannot stop the payment of the instrument. Stop payment can be done in the following cases:

Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s endorsement requires verification” is marked.

Loss of draft after endorsement: In this case, the branch first satisfies itself about the claimant and the endorsement in his favor.

Charges:

A commission of 0.10% is taken on the draft value & 15% vat on DD commission & Tk.25/= is taken as postal charge.

Demand Draft (DD) Collection:

To cancel an issued DD, the client has to submit an application. Then DD issuing branch sends a request letter to drawn branch to caption mark as “DD Cancel/Lost” in respective register. Issuing branch then sends an Inter Branch Debit Advice (IBDA) to the drawn branch against previously issued IBCA for reconciles the amount.

T.T. Issue/Collection:

Though TT stands for Telex Transfer it is used as Telephonic Transfer since Telex has eliminated. Telephonic transfer (TT) is another widely used mode for remittances of funds. In case of telephone transfer the message for transfer of funds is communicated through tested telephonic message. JBL generally recovers from the telephone charges in addition to the usual service charges.

Issuing of TT:

JBL follows the following procedures:

• The customer deposits money with JBL to be sent.
• The customer obtains a cash memo containing TT serial number.
• TT serial number, notifying part name is mentioned in the telephonic message.

Online Banking Services:

Now JBL started test basis online banking service in eight branches. As a result customer of one branch will deposit or withdrawal his/her money through any other branches of JBL at cheapest cost or service charges. Here it is mentioned that online facilities are available for Current Deposit A/Cs, Savings Deposit A/Cs & Special Notice A/Cs only.

IBC/OBC:

By OBC, we mean that those cheques drawn on other banks which are not within the same clearing house. Officer gives OBC seal andorsement on this type of cheques and later sends a letter to the manager of the branch of the some bank located in the branch on which cheque has been drawn. After collection of that bill branch advises the concerned branch in which cheques has been presented to credit the customer account through Inter Branch Credit Advice (IBCA).

Accounts:

Account Department plays most vital role in Banking. Accounts Department is a department with which each and every department is related. It records the profit & loss A/C and statement of assets and liabilities by applying of book-keeping. The functions of it are theoretical & computerized based. JBL REB Branch records its accounts daily, weekly, and monthly every record.

Basically Accounts Department is not alone. Accounts department is a mix of as follows:

1. Cash
2. Transfer
3. Clearing

Cash:
 Faruk Ahammed (Assistant officer Grad-1) is active as cash in charge. In fact, he maintains cash related all activities and Md. Alauddin Sharker (Assitt. Executive officer) & Khaleque Hiossain (Assitt.Executive Officer) assist him to accomplish it accurately.  This section of any branch plays very significant role in Accounts Department. Because, it deals with most liquid assets of the JBL. This section receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the counter. Every bank must have a cash counter where customer withdrawn and deposit their money. When the valued client’s deposit their money at the cash counter they must have to full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit their money through cash officer at the cash counter. There are several types of deposit slip as follows:

• Current Deposit A/C Slip,
• Saving’s Deposit A/C Slip
• Pay order Slip
• Demand Draft Slip
• T. Slip.
• Online Deposit Slip

After paying this kind’s of slip, the valued client waits for the deposit slip book outside of the cash counter. The Deposit officer  Rezaul Karim  (Assitt, Executive officer) deposit the money in their account through computer software, while the depositors account credited, then he puts a seal in the deposit slip.

Receiving Cash:

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. Then he puts his signature on the slip along with the ‘cash received’ seal and records in the cash receive register book against A/C number.
At the end of the procedure, the cash officer passes the deposit slip to the counter section for posting purpose and delivers duplicate slip to the clients.

Account treatment:
Cash……………………….. A/C Dr.
Customer’s………………… A/C Cr.

Cash Payment:
The drawer who wants to receive money against cheque comes to the payment counter and presents his cheque to the officer. Rezaul Karim (Assistt.Executive officer) verifies the following information:

• Date of the cheque.
• Signature of the A/C holder.
• Material alteration.
• Whether the cheque is crossed or not.
• Whether the cheque is endorsed or not.
• Whether the amount in figure and in word correspondent or not.

Then he checks the cheque from computer for further verification. Here the following information is checked:

• Whether there is sufficient balance or not.
• Whether there is stop payment instruction or not.
• Whether there is any legal obstruction or not.

After checking everything, if all are in order he posted the cheque in respective A/C through Easy Banking Software & passes the posted to Cash Officer Faruk Ahammed for cash payment to the beneficiary of the cheque.

Account treatment:

Customer’s……………………. A/C   Dr.
Cash ……………………………A/C   Cr.

The cash section of JBL deals with all types of negotiable instruments, cash and other instruments and treated as a sensitive section of the bank. It includes the vault which is used as the store of cash instruments. The vault is insured up to Tk. 150 Lac. If the cash stock goes beyond this limit, the excess cash is then transferred to feeding. As well, if limit is less REB Branch takes shelter from principle branch or feeding branch.

Account treatment:

JBL General …………………….A/C   Dr.
Cash ………………………………A/C Cr.

When cash is brought from JBL Principle Branch Office:

Accounting treatment:
Cash ……………………………….A/C Dr.
JBL General ………………………A/C Cr.

Transfer:

Basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount, it means that the total day’s transaction is completely okay.Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. Rezaul Karim (Assitt.Executive officer) maintains the transfer to client A/C.

Clearing:

Clearing is one of the crucial parts of banking. Different cheques of banks come from different clients to pass through clearing. In this case this cheques are sent to the head branch to get advice whether it will be passed or not and for that it takes minimum one day to credit his or her account. To perform these types of momentous activities Assistant executive officer Mrs. Roksana Sultana is involved.

Types of Clearing Cheque:

JBL Local Office (Head) Branch performs the bill clearing function through Bangladesh Bank. JBL L/O Branch acts as the agent of all JBL branches for the clearing house of the Bangladesh Bank. There are two types of cheque which are-

1. Inward clearing cheque.
2. Outward clearing cheque.

Inward Cheque:

Inward cheques are those ones drawn the respective branch which have been presented on other banks and will be cleared / honored through the clearing house of Bangladesh Bank. Then the cheque is called inward cheque of JBL L/O Branch.

Accounting treatment:

Customer’s………………………… A/C DR.

JBL General ………………………A/C CR.

Outward Cheque:

Outward cheques are those ones drawn on other bank branches which are presented on the concerned branch for collection through clearing house of Bangladesh Bank. These cheques are called outward clearing cheques.

Reason for the Return Cheques:

• Missing of Branch name, date, cheque no, figure of money.
• Effects not cleared, may be present again.
• Exceeds arrangement.
• Payments stopped by drawer.
• Payee’s endorsement irregular requires bank’s confirmation.
• Payee’s endorsement irregular, illegible / required.
• Drawer signature differs / required.
• Alteration in Date / figures / words required drawer’s full signature.
• Cheque is post dated / out of date
• Amount in word and figure differs..
• Clearing stamps required.
• Addition to Bank discharge should b authenticated.
• Collecting Bank discharge irregular.

Credit Department:

Credit in charge: responsible of all kinds of analytical and financial analysis of borrower in every steps of lending that ie; selection of borrower, proposal preparation, documentation, disbursement, recovery

Credit officer: proposal preparation, documentation, disbursement, repayment monitoring, prepare all kinds of monthly, quarterly, half yearly and yearly advance related statement.

Selection of borrower: Borrower is selected on what the credit products they want to take based on the terms and conditions. Each term if they fulfill in order to requirement then supervisor from the bank goes to visit to justify. Sometimes the clients come to borrow with the reference of manager or the head office.

Proposal of preparation: To prepare the proposal needed information is:

• Photograph of the client
• Trade license to be needed
• Tin certificate required
• Income statement
• Balance sheet
• Etc.

Head office sanction: If head office gets the all requirements what should be needed from the branch about the client, they give advice to approve for the loan.

Documentation:

1. Demand Promissory note: client do promise through formal way for the loan.
2.  Letter of Arrangement: Client in a formal way by written document requests the loan.
3. Letter of Disbursement: Bank give the loan to the client having all documents where there signature, confirmation can be seen to sue any kind of fraud.
4. Letter of guarantee: It is the document of guarantee paper that client is liable to the bank.
5. Security Document: Some sorts of instrument are kept from the client like as,

Disbursement: Monitoring the activity through disbursement scheduling. For instance, if anybody takes a loan from JBL 50 crore for a building, each step is supervised and according to that money is given the portion of 50 crore one by one.

Recovery: After the time period bank collect the money according to the contract from the client.

SWOT Analysis of JBL:

Strength:

• JBL has the strong good will in the banking sector.
• To be old Private bank, it has a strong experience in this sector.
• One of the largest no. of branches bank in the country.
• They are stronger based on capital and asset.
• Highest no. of clients.

Weakness:

• IT section is weak comparatively to others as they are using old and backdated software.
• Sometimes they have to pay extra time due to not having it expert in different branches.
• ATM card and booth is the great week point of them.
• Refreshment facility is poor where customer is the key to bring deposit.
• All are not skilled highly.

Opportunity:

• Due to have a strong brand image they may establish different industry or firm. For instance housing, consumer products etc.
• They may launch e-banking, mobile banking and strong online banking.
• Branches as well as booth they may set up in different areas.
• Expanding the business in abroad.

Threats:

• Rivals are increasing day by day.
• Fast service is more challenging compare to others.
• Political unexpected activities.
• Share marker instability.
• Rules and regulations are changed any time ordering from central bank.
• Utilization of modern software.

Findings:

• It can be said that they are the lower position in order to ATM booth.
• On line banking is not strong.
• They don’t have ATM debit card which is very popular now a days.
• Most of the cases employee only concerns about only his or her job.
• Marketing policy is not so strong in banking sector like others.
• Comparatively less facility is given to the employees rather than other banks.

Recommendation:

• Number of booth should be increased to fulfill the demand of the customers.
• They are using Easy Banking software in banking activities which is old. They may use modern software to provide service faster to the clients.
• Online banking should be improved. They say online but it is not actually where people face lots of problem for that.
• They can start mobile banking what already launched in other banks.
• In the branch there is no proper space to transaction at REB Branch of JBL. So head office should supervise this condition and enlarge the space.
• Islamic banking is the popular term what they may run to increase profitability.
• SME banking service can started what already launched  in other banks

Conclusion:

JBL always try to increase their profitability through different service reaching to the customer hand. To be more near to the customer they are increasing their branches as well as services. And that’s why their no. of branches is more than 864.  More services providing more easily how can be done always they analyze about that. To be more than 40 years experience, they have the great advantage to journey a long path.  They believe that customers’ satisfaction is the indicator of wealth maximization. During my job I got lots of opportunity to achieve experience how to deal with the clients what the behavior should be an official which is not possible gain from the book or in the class.  It was great job in the banking environment. I got a real communication skill in the office to expand my confidence level. Sometimes people become so crazy and angry but we have to tolerate and make them understand though they are wrong. So this way of behave may help in future on job career.