Internship report on A Study on the Overall banking procedures of Jamuna bank limited

1.1. 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.

1.2. 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 Southeast University, Bangladesh. It is a Four 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”.

1.3. 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.

1.4. 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.

1.5. 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).

1.6 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.

No remuneration was provided

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.

PART 2

BACKGROUND OF JAMUNA BANK LIMITED

2.1. Business of the bank:

Jamuna Bank Limited (JBL) provides commercial banking services in the Bangladesh. The Bank primarily engages in corporate Banking, trade finance, project finance, retail Banking, small enterprise finance, consumer finance, and syndication. Its range of service offerings include cash management services, payments and clearings, safe deposit locker services, employee benefits, collection services, treasury services, asset management, services and SWIFT for foreign trade. Jamuna Bank has an investment of 460 million taka in its business.

2.2. Location:

The Registered office & corporate Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. Its branches are situated at all the major cities of the country except 09 which are situated at rural area. The number of bank branches stood at 56 on October 2010. The bank has a plan to open more branches over the next several years at different important commercial places of the country

2.3 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.

2.4. Corporate information at a glance:

2.5. Ownership structure:

Leading industrialists of the country having vast experience in the field of trade and commerce own 52.84% of the share capital and the rest is held by the general public. JBL’s board currently consists of 13 (thirteen) Directors. Authorized capital is Tk.5600.00 million and paid up capital is Tk.3000.71 million as of 31^st December 2009.

2.6. Management structure:

Management team:

JBL is managed by highly professional people. The present Managing Director of the bank is a forward-looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is support by an educated and skills professional team with diversified experience in finance and banking. Jamuna bank limited has already achieved tremendous progress within a short period of its operation. The lists of management structure are given in bellows:

List of Management Team

Mr. Mokhlesur RahmanMr. Md. Mofazzal Hossain

Mr. Ghulam MustafaMr. Monsur-Uz-Zaman

Mr. Ahmed Nawaz

 Sponsors:

The sponsors of Jamuna bank limited are highly successful leading entrepreneurs of our country. They have stakes in different segment of the national economy. They are eminent industrialist and businessmen having wide business reputation both at home and abroad. The names of the sponsors are given below:

1. Al-Haj M. A. Khayer

2. Mr. Arifur Rahman

3. Mr. Golam Dastagir Gazi (Bir Protik)

4. Mr. Fazlur Rahman

5. Mr. M. N. H. Bulu

6. Mr. Md. Sirajul Islam Varosha

7. Mr. Md. Irshad Karim

8. Mr. Shaheen Mahmud

2.7. 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.

Corporate Culture:

Employees of JBL share certain common values, which helps to create a JBL Culture

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

2.8. Corporate Objective and strategies:

Objective of JBL:

• To earn and maintain CAMEL rating ‘Strong’.
• To establish relationship banking and improve service quality through development of strategies marketing plans.
• To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
• To introduce fully automated system through integration of information technology.
• To ensure an adequate rate of return on investment.
• To keep risk position at an acceptable range (including any of 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 procedure.
• 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 norms, transparency and accountability.

Strategies of JBL:

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

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 activities under the guidance and supervision of a body called “SHARIAH COUNCIL”.
• 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.

2.9. 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 Atish Dipankar University for education purpose.

2.10. Credit Rating Report (Entity Rating):

 2.11. Hierarchy of position in Jamuna Bank Limited:

 2.12 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.
• 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.

2.13. 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.

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

    Table 01: Reserve fund of JBL        

                           Figure 02: Reserve fund and other reserve 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:

    Table 02: 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.

   Table 03: Investment position of JBL

2.14. 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.

2.14.1 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.

2.14.2 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.

2.14.3 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.

2.14.4 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.

2.15 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.

2.16 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

2.17 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.

2.18 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.

2.19 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

2.20 Three themes for growth:

• Introducing card network and electronic banking.
• Expanding personalize services
• Building strong presence in the market with reputation

2.21 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.

2.22 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.

PART 3

PRODUCT AND SERVICE OFFERED BY JAMUNA BANK LIMITED

Products 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.

3.1. 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

3.1.1. 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. 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)

3.1.2. 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.

3.1.3. 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:

     Table 04: Interest rate of SB, CD & SRD A/C

Incidental charges of different account are given below:

   Table 05: Incidental charges of JBL

3.1.4. 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 06: Interest of FDR

3.2. 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:

3.2.1. 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.

3.2.2. 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.

3.2.3. 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.

3.2.4. 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.

3.2.5. 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.

3.2.6. 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.

Characteristics:

• Minimum Deposit: Tk. 1 lac.
• Maximum Deposit: Any amount multiple of Tk. 1 lac.
• After opening the account the profit element will be deposited in that account.
• Upon maturity the term may be renewed for the next tenure.

These scheme were effective on 18^th April 2009, due to Bangladesh Bank decision JBL have stopped these scheme temporary. Soon they will revising the interest rate of the scheme and continue the scheme again.

3.2.7. Double/Triple Growth Deposit Scheme:

JBL has introduced Double/Triple Growth deposit scheme that offers its customer to make double or triple money within seven years and eleven years respectively resulting a high rate of interest.

Characteristics:

• Minimum Deposit: Tk. 1 Lac.
• Maximum Deposit: Any amount multiple of Tk. 1 Lac.
• Overdraft Facility: The concerned customer can avail loan facility up to 80% of the deposited amount.

Features of the Scheme:

 Table07: Feature of the scheme

Terms & Conditions:

• If customer fails to deposit 3 consecutive installment then bank reserves the right to close the account.
• Customer will not get any profit if the scheme is closed within 6-months. If tit is closed after 6-mionths then client will get deposited amount along with interest rate. The rate is normal savings rate up to the closure time.

Like other scheme customers have to follow the government rules and regulations. They also have to follow the Bangladesh Bank rules.

3.3. Asset Products:

3.3.1. Funded:

Funded means those type products in which bank directly fund. This type of product is provided against mortgage, guarantee previous performances. For example: Overdraft, Term Loan, Time Loan, Consumer credit, , Professional Loan and Small Business Loan.

3.3.2. Non Funded:

Non funded means when the bank provides this type of service bank need not provide immediate fund. It is a high income source for the bank. But the bank has to provide high care when provide such type of services to the clients. These types of products are LC, Bank Guarantee. Discussion on LC is later on Foreign Exchange part.

3.4 Operational Network Diagram of Jamuna Bank Limited:

3.5 Milestones in the development of Jamuna Bank Limited:

2001 – Jamuna Bank Limited (JBL) 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 3rd June 2001.

2004 – IPO issued and traded in both Dhaka & Chittagong Stock Exchange

2005 – Jamuna Bank has launched its Online Banking services on April 05, 2005

2006 – Jamuna Bank Limited has installed its first Q-cash ATM.

2007 – Approved the new attractive salary structure to compete the top graded banks.

2008 – Jamuna Bank issue VISA card.

2009-  jamuna bank developed foreign remittance system.

 Every Branch of Jamuna Bank is divided into various departments namely as follows:

1.General Banking department.                               2.    Loan and Advances department.

• Accounts Section                           3.    Foreign exchange department
• Deposit Section
• Account opening Section
• Cash Section
• Bills collection and Clearing Section
• Remittance and Pay order Section

PART 4

JAMUNA BANK LIMITED, MOTIJHEEL BRANCH

4.1. Motijheel Branch:

Motijheel branch started its operation on 7^th December 2006 as 24^th branch of JBL. The branch was located at 2 DIT Avenue (Extension), Motijheel C/A Dhaka-1000. But due some to space problem recently they have their branch which is located at 59/2 Purana paltan, Motijheel C/A Dhaka-1000.To manage the branch efficiently and effectively it has professional human resources. The branch has distributed its work load in order wise so that they can easily meet up the customer needs. Most distinguished strength is customer services and their satisfaction.

Friendly, on time and enthusiastic services helps to satisfy the customers. Due to flexible working hour it attracts more clients doing banking transactions with the branch. In special cases customer who are coming outside the banking hour can honor the cheque and others without the delay.

Mr. Khorshed Ahmed Nayeem was the first branch manager of Motijheel Branch. Now he has been transferred to Nayabazar Branch. MD. Masudur Rahman is the new manager of Motijheel Branch. Under the supervision of new manager MD. Masudur Rahman the branch has been performing the activities very well. Under his efficient handling the branch has perform very well. Under his supervision the branch has been shifted to its new office.

Jamuna Bank Limited Motijheel Branch is not an old branch because it started its operation from 7^th December 2006. So its age is two and half year. In this short time period performance of this bank is very well. It is not an authorized dealer branch because it is operating from a short span of time. But this branch can open L/C and can do import export business.

4.2. Financial Performance of JBL Motijheel Branch:

4.2.1. Cost of Motijheel Branch:

            Table08: Month wise cost of JBL Motijheel Branch

 Interpretation:

If we consider the above table we can easily find out that early period of operation the cost of Motijheel Branch is high. First few month of its operation all types of cost was so high. From July 2009 to December 2009 it was running with loss and with high cost. But from the beginning of 2010 it overcomes the problem and earning profit.

4.2.2. Deposit & Advances of Motijheel Branch:

Interpretation:

From this table we can say that first few months of JBL Motijheel Branch Deposits and Loan & Advances was not so high. From the beginning of its operation to till December 2009 it was running with low deposit and advances. As a result it faces losses but gradually the scenario is changed and started earning profit

Table09: Deposit & Advances of JBL Motijheel Branch

4.2.3. Performance of JBL Motijheel Branch at a glance as on June 2010

                                                                                  (TK. In Thousands)

Table 10: Performance of JBL Motijheel Branch at a glance as on June    2010

PART 5

GENERAL BANKING PROCEDURE OF JAMUNA BANK, MOTIJHEEL BRANCH

5.1. 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:

5.1.1Deposit 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.

5.1.2Different 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 below:

• 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.

Consideration for account opening:

The officer should also consider the following factor in case of account opening:

• Introduction: Introduction of an account holder is must. Because opening of an account banker must satisfy himself about the identity of the proposed account opener. Bank has been accustomed to obtaining an introduction for each account from a responsible existing account holder known to him, whose account is operative with the acceptable balance in his account which satisfies the banker.
• Specimen signature: One or more specimen signatures of the account opener’s are obtained in a prescribed card for record keeping by the banker. These are the signature the banker recognize the purpose of customer’s signing cheque on account and issue other instruction to the banker.

5.2 General Practice for All type of Account:

Procedure for issuing of a checkbook:

If any one opens a Savings or Current account with JBL then he or she need cheque book for transaction purpose. For issuing a cheque book one need to go through some procedure. These are given below:

• For the first cheque book customer has to apply in a specified form along with the thanks letter which he or she has received after opening the account. Then for the
• New cheque book the clients have to apply through the requisition slip supplied with the previous check book.

• The leaves of the cheque book which is under issue shall be counted to ensure that all the leaves and the bank requisition slip are intact.
• The name and account number shall be written on the cover page of the cheque book. The account number of the client shall be entered on all the leaves of the cheque book along with its requisition slip.
• Next the name and account number of the customer shall in the cheque book register against the particular cheque book series.
• Officer who is in charge of the deposit department sign the register book along with the requisition slip.
• Finally the cheque book is handed over to the customer after taking acknowledgement on the requisition slip and the register book.
• Officer has to containing the requisition slip in a cover file. It shall be effectively preserved as vouchers. If the ledger keeper found any defect he will make a remark to that effect on the requisition slip and forward it to the cancellation officer to decide whether a new cheque book should issued or not.

Procedure when checkbook is lost:

If the cheque book is lost then a guarantee form is taken from the account holder, where he identifies the bank in this regard. For issuing a new cheque book a new requisition slip is given to the account holder. Fresh cheque book in stead of the lost one should be issued after verifying the signature of the account holder from the specimen signature card only prior approval of the manager or sub manager.

Closing of an A/C:

Customer may close out his A/C at any time by submitting an application to the branch. The customer should be asked to draw the final cheque for the amount standing to the credit of his or her A/C less the amount of closing and or other incidental charges and surrenders unused cheque. The account should be debited for the accounting closing charges etc. and an authorized officer to the branch should destroy unused cheque leaves. The stoppage of the operation of the account can be under following circumstances.

• Notice given by the customer himself.
• Death of Customer.
• Customer insanity and insolvency.
• Garnishee order

Transfer of an A/C:

Account holder may transfer his account form one branch to another branch .For this he must apply to the manager of the branch where he is maintaining account. Then manager of local office sends a request letter to the manager of the branch where the account holder wants to transfer his account .With his request he sends original copy of account opening application and specimen signature card and photocopy for application for transfer the account with the balance remained account.

Account inquiry:

Customer can obtain the statement of his account by the submission of an application in prescribed balance inquiry receipt. JBL not charges any amount of this statement. Bank normally issues statement twice a year.

Account Block:

The task of account block is done as per the order of the client or order of the court or order by the central bank.

Inactive, Dormant:

If there is no transaction happened is account during past one year then the account is being inactive as per the rules of Bangladesh. This is called dormant account. A report has been sent to the Bangladesh bank relating this matter and after a certain period the central bank takes control over this account.       

Cash section:

As a financial institution banks have to accept surplus money from the people as deposit and give them opportunity to withdrawal the same money by cheque etc. but among the banking activities cash department plays an important role. It does the main function of a commercial bank that is receiving the deposit and paying the cash on demand. As this department deals directly with the customers the reputation of the bank much depends on it. Function of a cash department is given below:

  5.3Cash Department:

   Cash section of any bank plays a vital role in general banking procedure, because it deals with the most liquid assets. There is several counters work simultaneously in cash section of Jamuna Bank, Motijheel Branch. There are two electronic counting machines by which a huge amount of cash money can be counted within a few minutes and it also ensure the zero percent counting machine. This section deals with all types of negotiable instrument and includes vault, used as the store of cash, instrument.

Function of cash department:

               Table 11: Function of cash department

Cash packing:

Cash is packed according to the denomination after the banking hour. Notes are    counted and packed in bundles and stamped with initial.

Allocation of currency:

Before starting the banking hour all tellers give requisition of money through “Teller cash proof sheet”. The head teller writes the number of the packet denomination wise in “Reserve sheet” at the end of the day; all the notes remained are recorded in the sheet.

Bills Collection and Clearing Section:

In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned .Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of its clients. Customer use demand draft, pay order and cheque etc. in financial transaction for safety and security purpose. Commercial bank’s duty is to collect these financial instruments on behalf of its client. The main function of this section is to collect instrument on behalf of the customer through Bangladesh Bank clearing house, Outside Bank Clearing (OBC), Inter Branch Clearing (IBC). Upon the receipt of the instrument this section examines the following things:

• Whether the paying bank within the Dhaka city.
• Whether the paying bank outside the Dhaka city.
• Whether the paying bank is its own branch.

5.4 Types of bill for collection:

Inward Bills for Collection (IBC):

When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill.

Next steps are given below:

• Enter the transaction in the IBC register.
• An IBC number is given on the bill.

• Endorsement given “Our branch endorsement confirmed”
• The instrument is sent for clearing.

If dishonored, the instrument is returned to the collecting branch along with a return memo.

Outward Bills for Collection (OBC):

If the bill is beyond the clearing range then it is collected by OBC mechanism. Customer deposit cheque, drafts etc. for collection, attaching with their deposit slip instrument within the range of clearing are collected through local clearing house but the other which are outside the clearing range are collected through this mechanism. At first the clearing officer has to do some primary tasks that are very important. Those are given below:

• Name of the payees must be same both at deposit slip and on cheque.
• Account number is correctly fulfilled.
• Amount written on deposit slip and on cheque is same.
• Date on deposit and cheque.

Then the officer crosses the cheque and endorses the same. It is a must to clear the cheque through clearing house. Then the banker gives input of cheques details at software provided by the Bangladesh bank which is mandatory. Then bank takes a validation hardcopy. Validation hardcopy is stored at bank and a floppy disk has been send to the principal branch. Suppose customer of JBL Motijheel branch depositing a cheque of Janata bank of Chittagong branch. As a collecting bank JBL local office will perform the below task.

Procedure:

• Bank depositing the cheque along with deposit slip.
• Crossing of the cheque are done indicating as collecting bank.
• Endorsement “payee’s A/C will be credited on realization” is given.

• Entries are given in the outward clearing register.

Procedure of collection process is given below:5.5 Clearing:

Collecting bank can collect it either by its branch or by the drawer’s bank. They will forward the bill then to that particular branch. OBC number will give on the forwarding letter. Following procedure will take place in case of the below two cases:

• Bills collected through Branch or
• Bill collected through another bank of this are

According to the Article 37(2) of Bangladesh Bank Order 1972, the banks which are a member of the clearing house are called ad Scheduled Banks .The Scheduled Banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central bank where everyday the representative of the member banks sits to clear the cheques. For clearing there is a department in every bank. This department receives cheques, drafts and like instruments from its customer for the purpose of collection with a deposit slip over the counter crediting their accounts .Clearing of cheque is done through the clearing house in Bangladesh Bank .Everyday the first hour starts at 10.30am and returns house at 5:00 pm.

Function in the clearing house:

• The clearing house is a legislative body of the locally operating scheduled banks for exchange of cheques, drafts and other demand instrument drawn on each other and received from their respective customers for collection.

• The house meets at the appointed hour on all working days under the chairmanship of the central bank. The clearing house sits twice in a working day.
• The member submits the claimable cheques in the respective desk of the banks and vice-versa.
• Consequently, the debit and credit entries are given.
• Finally, the debit summation and the credit summation are calculated. Then the banks clear the balances through the cheque of Bangladesh Bank.

Dishonor of Cheque:

JBL sends with cheque return memo to the customer stating the reason if the cheque is dishonored. Jamuna Bank Limited charges some money as penalty if the cheque is dishonored because of insufficient of funds.

5.6 Remittance and Pay order Section:

If we consider the present situation of our country then carrying cash is not safety and risky. For safety purpose one can use banking channel and ensure the maximum security of their money. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the commercial banks in rendering services to its customer.

Sending money from one place to another place for the customer is another important service of banks and this service is an important part of countries payment system. For this service people especially businessman can transfer funds one place to another very quickly.

Money Gram money transfer:

Jamuna Bank is a dealer of Money Gram Money Transfer. It pays the money remitted by the non resident Bangladeshis to their relatives. The tasks are done by the satellite link and pay the beneficiary after successfully identification proof.

Pay order:

Pay order is an instrument that is issued and paid from the same branch of the bank to pay a certain sum of money to the person there on or to his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing pay order bank takes out money of the pay order in advance. Pay order is issued in the same city. This instrument is generally used in tender, bids, earnest money etc. The procedure for selling pay order is as follows:

• Purchaser must be an accountholder of JBL. But in special cases job seeker and student can issue a pay order from this branch.
• Client first deposit the money with P.O application form.
• Next officer give necessary entry in the bills payable register.
• Then prepare the P.O instrument carefully.
• After that it has been sign and approved by higher authority.
• Signature of customer is taken in the counter part of the instrument. Fin ally it delivered to the customer.

Modes of purchasing Pay Order:

• § By cash
• § By transfer of money.
• § By account.

Commission for Pay Order:

                                  Table 11: Commission for Pay Order

Collection of Pay Order:

A customer of Dhaka bank who is the payee a P.O. will deposit it for collection .The instrument is given to the clearing that will place it to the issuing bank in the clearing house. Before placement JBL as a collecting bank gives necessary endorsement.

Pay order issuing process:

5.7 Demand Draft:

The demand draft (DD) is a negotiable instrument under section 85(A) of the negotiable instrument act -1881. DD is issued in favor of the customer who maintains an account with this branch. Demand Draft is an order of issuing bank on another branch of the same bank to pay specified some of money to the payee on demand. It is generally issued when the customer wants to remit money in any place, which is outside the clearing house area of issuing bank.

Procedure for issuing Demand Draft:

A DD application form is given to the customer. Customer fills up the form which includes the name of the drawer, name of the payee, amount of money to be sent, name of the drawee branch, signature and address of the drawer. The customer may pay in cash or may transfer the amount from his/her account. After the money is paid and the form is sealed and signed, it is given to the DD issuing desk. DD block has two parts one for bank and another for the customer. Bank’s part contains issuing date with drawer’s name and sum of the money and name of the drawee branch. Customer’s part contains the name of the payee, issuing date, sum of the money and drawee branch.

After filling up the DD, form is given in the DD issue register and at the same time the bank issue a DD confirmation slip addressing the drawee branch .This confirmation slip is entered into the DD advice issue register and a number is put on the confirmation slip from the same resister. Letter on the bank mail this slip to the drawee branch. Then the DD from is sealed with a protectoral machine to protect from material alteration. Next the customer signs on the back of the DD and takes him/her part of DD.

Payment of Demand Draft:

For payment of demand draft paying branch first has to confirm that the Demand Draft is not fake one. First bank check the “Test Code” mentioned on the draft. If “Test Code” agrees then believe the DD is not bogus and authority makes payment. For further confirmation the issuing bank sends an advice about the DD to the paying branch. Without advice the paying branch does not make payment.

Role of a drawn on Bank:

The I.B.C.A. (Inter Branch Credit Advice) dispatched to drawn on branch. Issuing an I.B.C.A. implies that the branch is being credited to whom it is issued. I.B.C.A. contain the controlling number .Lodgment is given after receiving an I.B.C.A. Necessary entry is given in a register called “DD-In-Issuing branch. Controlling number of the I.B.C.A. should match the serial number of this DD in register.

Cancellation of a demand draft:

If the holder of the instrument wants to cancel it, he should submit a request letter in this regard. Issuing branch then sends I.B.D.A. to the drawn on branch against the I.B.C.A. which was sent previously.

Different between Pay order & Demand Draft:

There are some differences between pay order & demand draft, which are given below:

• In case of Demand Draft both the payer and payee need to maintain accounts. But there   is no certain rule for pay order.
• PO is used in the same clearing area; DD is used for all kinds. DD cannot be done in   the same clearing area.
• DD is drawn on a certain bank office. But there is on certain rules for PO.

Accounts section:

This is a very much crucial department for each branch of a commercial bank. Records of all the transactions of every department are kept as well with other respective branches Accounting department verifies all financial amounts and contents of transactions. If any discrepancy arises regarding any transaction this depart report to the concerned department.

5.8 Task of Accounts department:

Accounts play an essential role in commercial banking. In private banking sector accounts department of JBL perform it’s very properly. The activities of accounts department are given below:

• Budgeting for branch.
• Make salary statement and pay salary.
• Pay all expenditure on behalf of the branch.
• Make charges for different types of duties.
• Branch to branch fund remittance and support for accounting treatment.
• Prepare statement for reporting purpose.
• Record all transaction in the general and subsidiary ledger.
• Record all transaction in the daily cash book.
• Prepare daily fund function, weekly position, periodic statement of affairs etc.

General ledger (Daily tasks):

Affairs print out taking and daily position prepare. Officer will prepare daily general ledger. (As Jamuna bank has its own computerized network system it is prepared automatically).

Daily Position (Daily tasks):

A daily position report is prepared everyday. Information is collected from general ledger. It has to send to head office or keep in safe for future use. In a daily position report there are generally deposits, different types of bill, loan and advances, cash in hand, cash in ATM etc.

Voucher keeping (Daily tasks):

Keeping all vouchers date wise along with supporting instruments. Vouchers and relevant supporting instruments are sending to the account department from all departments. All the vouchers are keeping in safety place at least 15 years.

Profit and loss Calculation (Periodical task):

At the end of each month profit and loss account is prepared and send to the head office. At the end of year cumulative total loss and profit is prepared.

All income & Expenditure monthly monitoring:

All income and expenditure are done by the accounts department. They also monitor the income and the expenditure.

Branch budget monitoring:

The budget of a branch is prepared by the HEAD Office. And it is monitored by the account department.

Statements Prepared by the Branch:

• Weekly fund position.
• Monthly Sector Corporation.
• Monthly Schedule Bank Statement-1 (SBS-1)
• Quarterly Schedule Bank Statement-2 (SBS-2)
• Quarterly statement of exchange of torn/dirty notes
• Half-yearly schedule bank statement-3 (SBS-3)
• Half yearly deposit insurance pension scheme
• Branch position daily, monthly and yearly.
• Prepared all kinds of voucher.

PART 6

LOAN AND ADVANCES PROCEDURES OF JAMUNA BANK, MOTIJHEEL BRANCH

6.1. 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:

6.1.1. 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

6. 2. Organization Structure for Credit Operation:

6.3Credit Policy of the Bank

JBL Credit Policy contains of total macro-economic development of the  country. as a whole by way of providing financial support to the trade, commerce and industry. Throughout its credit operation JBL goes to every possible corners of the society. They are financing large and medium scale business house and industry. At the same time they also take care entrepreneur through its operation of lease finance and some micro credit, small loan scheme etc. The bank has came up with a scheme where women will be 91-verL financial support for their self employment and development.

6.4 Tools for Appraising Credit

The 10 C’s of Good and Bad Loan

In addition to the formal credit appraisal, the credit an official of JBL tries to judge the possible client based on some criteria. These criteria are called the C’s of good and bad loan. These are described below:

1. 1.    Character: Make sure that the individual or company they are lending has outstanding integrity.

1. 2.    Capacity: Make sure that the individual or company they are lending has the capability of repaying the loan

1. 3.    Condition: Understanding the business and economic conditions that whether it will change after the loan is made.
2. 4.    Capital: Make sure that die individual or the company they are lending has in appropriate level of investment in the company.

1. 5.    Collateral:  Make sure that there ^is a second way out of a credit but do not allow that to drive the credit decision
2. 6.    Complacency: Official do not rely on past. They remain alert every time whether any mistake is taking place or not.
3. 7.    Carelessness: They believe that documentation, follow up and consistent monitoring are essential to high quality loan portfolio.
4. 8.    Communication: They share credit objectives and credit decision making both vertically and laterally within the bank.
5. 9.    Contingencies: Make sure that they understand the risk, particularly the downside possibilities and that they structure and price the loan consistently with the understanding.

10. Competition: They do not get swept away by what others are doing.

Lending Risk Analysis (LRA)

Lending Risk Analysis is a financial tool to analyze the risk associate in a loan proposal. According to Bangladesh Banks order every bank has to conduct LRA. For every loan amounting Tk. I Core and above. JBL is frequent user of this technique.

6.5 Computation Of credit risk

The following step-wise activities outline the detail process for arriving at credit risk grading.

 Credit risk for counterparty arises from an aggregation of the following:

•  Financial Risk Business/Industry Risk
• Management Risk
• Security Risk
• Relationship Risk

Each of the above mentioned key risk areas require to be evaluated and aggregated to arrive at an overall risk grading measure.

1. Evaluation of Financial Risk:

Risk that counter parties will fail to meet obligation due to financial distress. This typically entails analysis of financials i.e. analysis of leverage, liquidity, profitability & interest coverage ratios. To conclude, this capitalizes on the risk of high leverage, poor liquidity, low profitability & insufficient cash flow.

2. Evaluation of Business/Industry Risk:

Risk that adverse industry situation or unfavorable business condition will impact borrowers’ capacity to meet obligation. The evaluation; of this category of risk looks at parameters such as business outlook, size of business, industry growth, market competition & barriers to entry/exit. To conclude, this capitalizes on the risk of failure due to low market share & poor industry growth.

c)     Evaluation of Management Risk:

Risk that counter parties may default as a result of poor managerial ability including experience of the management, its succession plans and teamwork.

d)                 Evaluation of Security Risk:

Risk that the bank might be exposed due ‘ o’ poor quality or strength of the security in case of default. This may entail strength of security & collateral, location of collateral and support.

e)                  Evaluation of Relationship Risk:

These risk areas cover evaluation of limits utilization, account performance, conditions/covenants compliance by the borrower and deposit relationship.

According to the importance of risk profile, the following weitght ages are proposed for corresponding principal risks.

Principal Risk Components                                                     Weight:

• Financial Risk                                                             50%
• Business/Industry Risk                                               18%
• Management Risk                                                       12%
• Security Risk                                                               10%
• Relationship Risk                                                        10%

Principal Risk components:                 Key parameters:                                  Weight:

• Financial Risk                                                                                     50%

–Leverage                                           15%

-Liquidity                                            15%

-Profitability                                        15%

-Coverage                                            15%

• Business Industry Risk                                                                    18%

-Size of Business                                 5%

-Age of Business                                 3%

                                          -Business Outlook                               3%

-Industry growth                                 3%

– Market Competition                         2%

– Entry/Exit Barriers                            2%

• Management Risk                                                                               12%

-Experience                                         5%

-Succession                                         4%

-Team Work                                        3%

• Security Risk                                                                                       10%

-Security coverage                              4%

-Collateral coverage                            4%

-Support                                              2%

• Relationship Risk                                                                                10%

-Account conduct                               5%

-Utilization of limit                             2%

-Compliance of covenants/condition  2%

-Personal deposit                                 1%

After the risk identification & weight age assignment process (as mentioned above), the next steps will be to input actual parameter in the score sheet to arrive at the scores corresponding to the actual parameters.

This manual also provides a well-programmed MS Excel based credit risk scoring sheet to arrive at a total score on each borrower. The excel program requires inputting data accurately in particular cells for input and will automatically calculate the risk grade for a particular borrower based on the total score obtained.

The following steps are to be followed while using the MS Excel program.

1.Open the MS XL file named, CRG_SCORE_SHEET

2.The entire XL sheet named, CRG is protected except the particular cells to input data.

3.Input data accurately in the cells which are BORDERED & are colored YELLOW.

4.Some input cells contain DROP DOWN LIST for some criteria corresponding to the Key Parameters. Click to the input cell and select the appropriate parameters from the DROP DOWN LIST as shown below.

1. All the cells provided for input must be filled in order to arrive at accurate risk grade,
2. We have also enclosed the MS Excel file named, CRG_Score_Sheet in CD ROM for use.

The following is the proposed Credit Risk Grade matrix based on the total score obtained by an obligor.

The customer at the branch of the bank place credit proposals. When a customer comes with accredit proposal , the credit department officials of the branch make an open discussion with the customer on different issues of the proposal to judge.

worthiness of  tile proposal and customer. if theproposal scenes worthwhile in all  aspect then the proposal is placed before credit committee of the bank. After threadbare discussion, if the committee agrees in principle the proposal is sanctioned as per the delegated business power of the branch.

However, if the magnitude of the proposal is beyond the delegated business power of the branch they forward it to the Head Office with, sanction of approval.

On receiving rile proposal, the Credit Division of Head Office places the proposal in the Head Credit Committee. The committee further analyzes proposals critically and if agree in principle they sanction the same as per delegated business power.. Again if the merit and magnitude of the proposal is beyond the delegated business power of the Head Office Credit Committee or Managing Director forward proposal to the Board of the Bank with recommendation for approval.

If the proposal is found unviable at the branch level they decline the same from their desk. In the same way, proposals are also declined from the Head Office Credit Committee and from Board if it is not feasible.

Security /Collaterals.

The following securities are acceptable.

• Ownership of leased assets before the period of loan adjustment.
• Collateral securities in the form of land & building/Fixed Deposits/other cash collateral /Wage Earners Development Bond having liquidation value covering at least 100% amount of finance.
• Deposit Of A category shares, National Savings Certificates, ICB Unit Certificates, assignment of life insurance policies, Bank Guarantee also be allowed as collateral securities.
• Creation of charge of axed assets of file existing industrial units requiring BMRE. Creation of charge on the existing vehicle will also be acceptable as securities.

Charges

Bank charges are modest and competitive.

Personal Loan for Woman

This is one of the new events in Bangladesh in credit sector. Woman who are interested and has the ability to pay it back in time those can get this kind facility To encourage the woman JBL provide loan with low interest.

Eligibility:

The borrower must be the following profession.

• Service holder of Government Organization
• Service holder of Semi-Government Organization
• Service holder of Multinational Organization
• Service holder of Bank and Insurance Company
• Shop owner/has small business.

Interest Rate : 15.5% per annum

Consumer Credit Scheme

Consumer credit is recently new field of micro credit activities; people who have limited income can avail of this credit facility to buy any household effects including car, computer, household and other commercial durables. JBL plays a vital role in extending the consumer credit.

Eligibility:

The borrower must be the employee of the following organization.

• Government Organization
• Semi- Government Organization
• Multinational Organization
• Bank and insurance Company
• Reputed Commercial Organization
• Professionals

Nature

Mid term Micro Credit

Interest Rate: 16 % per annum

Terms And Conditions

• Client will procure the specified articles from the dealer/agent /shop acceptable by the Bank.
• § All of the papers /cash memo etc. related to the procurement of the goods will be in the name of bank ensuring ownership of the goods. The ownership will be transferred in the name of the client after full adjustment of Banks due.
• The clients will have to bear all the expenses of license, registration and insurance etc.
• The clients will have to bear the cost of repair and maintenance of the acquire articles.

PART 7

FOREIGN EXCHANGE PROCEDURES OF JAMUNA BANK, MOTIJHEEL BRANCH

7.1 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.

7.1.1. 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

7.1.2. 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.

7.2 Import and Export handling and financing

7.2.1 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.

7.2.2Export Financing

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

7.3 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.

                                     Figure 08: Import business growth

7.4 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.

Figure 09: Export business growth

Letter of Credit

Issuing letter of credit is one of the important services for JBL. A letter of credit is a document authorizing by the bank for a specific amount of money. Two types of L/C is provided by JBL.

                                                   Demand Loan Loan ABP Mack T o Back L/C)      Demand Loan ABP (Deferred Payment, L/C)

Eligibility

This facility is given to the exporter/manufacturer /producer

Terms  and Conditions

• It should stipulate the name of the loan/credit/grant.
• It should bear the name of the designed bank.

7.5 Procedures of opening L/C:

When customer give request of opening L/C with proforma invoice, bank verifies the information of customer , verifies the proforma invoice then manager of the branch gives authorization to open the L/C. In case of situation where JBL works as a advising bank, here other bank opens the L/C and send a copy of L/C to the JBL. Then JBL verifies the L/C and advises to the exporter. Exporter can get this payment of L/C from advising bank or issuing Bank. If exporter takes payment from advising bank then advising bank wants reimbursement from importer , if importer fails to pay then bank wants payment from issuing bank.

Without opening L/C some other working procedure of JBL, motijheel branch are:

• Filing the L/C
• Posting L/C information into the software
• Generating documents from SWIFT.
• Verifying commercial invoice.
• Advising the exporter.
• Working as a partner of importer.

As Motijheel branch has started its foreign exchange operation so late from march, 2007.So it is still growing.

PART 8

FINDINGS OF THE REPORT

8.1 My Specific Job Responsibilities:

I was appointed as an intern at JBL Motijheel Branch which deals with the valued clients and prospective investors. My major responsibilities lies with the customers, providing information to their queries, follow up customer intention to the supervisor and also reporting my respective senior executives to the daily activities,L/C opening, L/C filing, dealing with inward and outward cheques. I worked in foreign exchange department first 1 month, then I was shifted to clearing section and then to account opening and finally credit section.

My specific job responsibilities are given below:

• Assist the clients by providing information for account opening.
• Make them aware about different types of services,
• Collecting the documents from clients which are necessary for account opening.
• Issuing cheque book and enter cheque number on computer for authorization.
• Bank authority use Cheque book register for security purpose. I also have to maintain the register book.
• Preparing the pay order and demand draft instrument.
• In this case Bank authority also use register book and I give entries for every transaction. Finally I have to give entry on computer.
• Providing deposit slips to the clients.
• Writing vouchers for inter branch amount transfer.
• Entry the clearing cheque in registrar.
• Input the outward cheques into the software.
• Return cheques registrar maintenance
• Clearing IBCA (Inter Branch Credit Advice) & IBDA (Inter Branch Debit Advice) writing.
• Bank keeps the daily activities records through Voucher keeping (daily tasks). As an intern I had done this job.
• Update the daily cash register book for storage purpose.
• Giving input in NIKASH.
• Data entry for salary payment
• Assist the accounts manager according to his instruction
• Issuance of Bank Certificate and bank statement as per client needs.
• Receive the customer inquiry by phone calls and answer their inquiries.
• Provide feedback to the senior executives about the customer intention.
• Receive all the external documents from stakeholders like customers and other banks and give entry on the book.
• Fill up the KYC form and keep the customer information in the computer for record purpose.
• Open L/C , checking all the documents for opening L/C.
• Filing L/C.
• Giving input of L/C information into the software.
• Posing of active fine payment into the software.

8.2 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.

8.3 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.

PART 9

LIMITATIONS

AND

RECOMMENDATIONS

9.1 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.

9.2 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.

PART 10 CONCLUSION

Conclusion:

The modern business world is on the fastest flow of competition which is growing wider and wider. To have sustainability in this competitive world the organization are formulating new strategies and business plan with maximum efficiency levels in all sectors. Due to competition it is very difficult to build a strong base for the bank and to uphold the image of bank. Banking is becoming more and more vital for economic development of Bangladesh in mobilizing capital and other resources. Jamuna Bank, being a third generation bank, is also extending such contributions as to the advancement of the socioeconomic condition of the country. JBL has some problems but it is encouraging that they are trying to overcome these obstacles. To keep pace with current demand JBL should be more responsive. It should take necessary steps & spread over their products all over the country. Without a strong footing of deposit it is not possible to grant huge amount of loans and advance that is one of the major sources of income of a bank and without huge amount it is not possible to attract the major portion that enjoys credit facilities. It will more justify for JBL to concentrate on corporate banking than consumer banking i.e. the major portion of the profit will be generated from corporate sector not from consumer section.

As a BBA student I have completed my internship from Jamuna Bank Limited (Motijheel Branch). I have worked with clearing, foreign exchange and account opening Department. Jamuna Bank is almost a new player in the banking sector and is committed to provide high quality services to its stakeholders. It contributes to the GDP of a country through different financial product and profitable utilization of fund.

From the findings it can be observed that JBL trying it level best to maintaining the sustain growth level. Although it could not reach the highest position but it growth rate is continuously increasing. Based on the previous performance and the proper utilization of resources, hope that JBL will be able to achieve its goal and would become a finest corporate citizen’s in the Banking industry.