PART- A
FINDINGS ON HEAD OFFICE
FINDINGS # 01
RUPALI BANK LTD. GENERAL ACCOUNT (INTER BRANCH TRANSACTION ACCOUNT) RECONCILIATION POSITION.
Fact:
Inter branch transaction account has not been reconciled fully. A number of un-reconciled entries remained unadjusted. The total unreconciled debit balance of Tk. 67261.60 million and unreconciled credit balance of Tk. 66846.57 million resulting net debit balance Tk. 415.04 million. Details given below :
Particulars | Taka |
Debit balance : | |
Head Office Account | 66,736,501,417 |
Branch Account | 525,103,576 |
Total | 67,261,604,993 |
Credit Balance : | |
Head Office Account | 39,901,383,800 |
Branch Account | 26,945,184,356 |
Total | 66,846,568,156 |
Net Debit balance | 415,036,837 |
Implication/Risk:
It indicates lack of internal control over the management of inter branch transactions and as a result the bank may run the business in the risk of suffering financial loss due to non reconciliation and non adjustment of inter branch transactions.
Recommendation:
The bank should exercise proper control over the workings of the reconciliation function and take initiative for reconciliation and adjustment of all outstanding entries on a top priority basis.
FINDINGS # 02
TAX DEDUCTED AT SOURCE REMAIN UNADJUSTED
Fact:
We found from note. 9.02 that amounting Tk. 3187.14 million remaining unadjusted from 1989. Details given below:
Year | Taka |
1989 | 44,068,781 |
1990 | 38,504,764 |
1991 | 41,786,506 |
1992 | 76,063,071 |
1993 | 34,926,562 |
1994 | 43,209,672 |
1995 | 104,218,562 |
1996 | 393,873,131 |
1997 | 112,265,922 |
1998 | 102,706,641 |
1999 | 210,593,853 |
2000 | 245,861,714 |
2001 | 230,161,787 |
2002 | 275,942,197 |
2003 | 223,304,594 |
2004 | 107,614,028 |
2005 | 93,376,676 |
2006 | 88,693,685 |
2007 | 384,428,714 |
2008 | 243,303,526 |
2009 | 57,388,938 |
2010 | 34,846,322 |
Total | 3,187,139,646 |
Recommendation:
Management should take necessary steps to realize the amount from NBR.
FINDINGS # 03
FIXED ASSETS RECORD/REGISTER WERE NOT MAINTAINED PROPERLY
Fact:
The record/register of all the fixed assets of the bank was not maintained properly as some of the important information related to fixed assets like, location, reference no, identification no, date of acquisition/purchase, condition of assets etc. were not available in the fixed assets register.
Implication/Risk :
It indicates weakness in fixed assets management.
Recommendation:
Management should record all information related to Fixed Assets in the Fixed Assets Register.
FINDINGS # 04
STATIONERY MANAGEMENT PROCEDURE
Fact:
During our audit we found the following irregularities regarding stationery management:
- Physical verification of stock of stationery was not conducted by the branch management;
- Stationery Register was not maintained regularly; and
- While conducting our audit, we found some differences between Stock register and physical verification of stationery.
Implication/Risk:
- It indicates non-compliance with the policy of the bank regarding stationery management;
- The existence of stationery on any particular date can not be ensured; and
- It may enhance scope of misuse of stationeries.
Recommendation:
The bank should take initiatives to ensure control over stationery management.
FINDINDS # 05
INTERNAL AUDIT
Fact:
Branch internal audit reports are as usual. This reports are not identified the weakness of branch in application of circulars and orders of Bangladesh Bank and other Regulatory authorities. In many cases we found that there is no recommendation about the classification of loan and advances, eligible security against loan and advances, recovery of loan and advances.
Implication/Risk
Actual situation of branch not disclosed in the internal audit report.
Recommendation:
Management should take necessary steps in this regard.
FINDINDS # 06
MEMORANDUM OF UNDERSTANDING (MoU) ON OPERATING EXPENSES
Criteria:
As per condition no. 10 of Memorandum of Understanding (MoU) of Board members of Rupali Bank Limited with Bangladesh Bank stated that “Operating expenses for the year 2010 shall be reduced rationally and shall not exceed the year 2009 level.”
Fact:
Our audit revealed that operating expenses amounting to Tk. 420,681,421 has been over expended the approved limit according to MoU during the year under audit. Details are given below:
Particular | Expenses for the year 2009 | As per (MoU) with BB for this year | Actual expenses for the year 2010 | Difference (Tk.) |
Operating expenses | 1,922,283,649 | 1,922,283,649 | 2,342,965,070 | 420,681,421 |
Implication / Risk
It is the non-compliance of Memorandum of Understanding (MoU).
Recommendation:
Management should take necessary steps to follow Memorandum of Understanding (MoU) of Board members of Rupali Bank Limited with Bangladesh Bank specific condition no. 10 regarding operating expenses.
FINDINDS # 07
BUDGET PREPARATION AND MONITORING
Fact:
No specific division for preparing and monitoring budget. This is necessary to achieve the targets and to control the expenses of Bank
Risk:
This indicates the weakness of internal control.
Recommendation:
To increase the effectiveness and efficiency of following budget, management should take necessary steps in this regard.
FINDINDS # 08
BALANCE OF SUSPENSE ACCOUNT REMAIN UNADJUSTED
Fact:
Balance of suspense account remains unadjusted for a long time. Details are given below:
Particulars | 2010 Taka |
Demand drafts paid without advice
| 153,551,735 |
Foreign drafts paid from suspense account
| 10,367,024 |
WES Fund purchased
| 102,029,648 |
Sundry Debtors
| 478,166,113 |
Total
| 744,114,520 |
Recommendation:
Management should take necessary steps in this regard.
FINDINDS # 09
CAPITAL ADEQUACY RATIO (CAR)
Fact:
Capital Adequacy Calculated by Auditor: | ||||||||
(Fig in Million) | ||||||||
Particulars of available capital | Tire- 1 Core Capital | Tire – II Supplementary Capital | Total (Taka) | |||||
Core Capital | ||||||||
1 | Paid up Capital | 1250.00 | – | 1250.00 | ||||
2 | Share deposit | 74.95 | – | 74.95 | ||||
3 | Statutory reserves | 1535.38 | – | 1535.38 | ||||
4 | General reserves | 513.3 | – | 513.3 | ||||
5 | Retained earnings | 315.15 | – | 315.15 | ||||
6 | Minority interest in subsidiaries | – | – | – | ||||
7 | Non-cumulative irredeemable preference shares | – | – | – | ||||
Sub Total: | 3688.78 | – | 3688.78 | |||||
Supplementary Capital | ||||
1 | General provision (1%of unclassified loan & off-Balance Sheet Exposure) | – | 1436.94 | 1436.94 |
2 | Assets revaluation reserves | – | 1072.78 | 4792.62 |
3 | Exchange equalization accounts | – | 27.99 | 27.99 |
4 | All other preference share | – | – | – |
5 | Perpetual subordinate debt | – | – | – |
Sub Total: | – | 2537.71 | 2537.71 | |
Total capital available | 3688.78 | 2537.71 | 6226.49 |
Core Capital (Tire – I ) : | Capital Available x 100 | 6.51% | |||||
Risk Weighted assets | |||||||
(Risk Weighted Assets = 56632.20 million) | |||||||
(Minimum requirement 5% of RWA.) | |||||||
Supplementary Capital (Tire – II ): | Capital Available x 100 | 4.48% | |||||
Risk Weighted assets | |||||||
(Risk Weighted Assets = 56632.20 million) | |||||||
(Minimum requirement 5% of RWA.) | |||||||
Total Capital (Minimum requirement 10% of RWA.) | 10.99% | ||||||
Capital Adequacy Ratio | ||||
Particulars | Required | Held | Surplus / deficit | |
Core Capital (Tire – I ) | 5% | 6.51% | 1.51% | |
Supplementary Capital (Tire – II) | 5% (Not Mandatory) | 4.48% | (0.52%) | |
Total | 10% | 10.99% | 0.99% | |
Total Capital: | ||||
i) | Capital required @ 10% on the risk weighted assets | 5663.22 | ||
ii) | Total capital available | 6226.48 | ||
iii) | Capital surplus | 563.26 | ||
iv) | Total shortfall by other adjustments not considered in the account | – | ||
| Total Surplus | 563.26 |
FINDINDS # 10
BOARD DIRECTOR’S FEE
Fact:
As per BRPD circular no – 03 dated 18 January 2010, the above limit of director’s fee of any bank is Tk 5,000 per meeting. But the bank bears Tk.5,000 in cash and VAT Tk. 750 total Tk. 5,750 for each director per meeting during our audit period.
Risk:
It indicates the non-compliance of BRPD circular no: 03.
Recommendation:
Management should take necessary steps in this regard.
FINDINDS # 11
INFORMATION TECHNOLOGY (IT) SYSTEM
Fact:
During our audit we observed that the existing IT system was not up to date as compared to technology based banking systems implemented by various Banks in Bangladesh. In some cases the existing system was unable and insufficient to provide full and correct information.
Implication / Risk:
- i. Details analysis is not possible for management decision;
- ii. It is difficult and time consuming to prepare the statement from register and documents Maintained manually; and
- iii. Lag behind from competition in modern banking system due to not using online banking system.
Recommendation:
The bank management should develop the bank’s IT system as required modernization of banking system. The management should also introduce computerized system in those branches where it has not yet been introduced and should increase the number of computers and efficient operators at various branches and Head office.
PART-B
FINDINGS ON BRANCHES
FINDINDS # 12
PROVISION PROCEDURE FOR LOANS AND ADVANCES
Fact:
During our audit we observed that provision for loans and advances not shown in profit / loss account of branches. So the actual position of the branches not found from the Financial Statement.
Recommendation:
Branch should include the amount of provision in the financial statement.
FINDINGS # 13
BALANCE OF LOANS AND ADVANCES EXCEEDED THE SANCTIONED LIMIT
Fact:
During our audit we found that in some cases loans and advances exceeded the sanctioned limit. Some instances are given below:
Branch Name | Party Name | Sanctioned Limit | Outstanding Amount |
B. B. Avenue Br. | Dewan Safiq | 61,065 | 425,488 |
Ahmad Abdur Rouf | 10,000 | 82,838 | |
Rupali Sadan Corp. Br. | M/S Eastern Agencies | 25,000 | 307,564 |
M/S New Dhaka hand loom factory | 25,000 | 102,453 | |
Ramna Crop. Br. | Khan Electronics | 700,000 | 1,079,935 |
Maigdiee Tanary Ltd. | 1,500,000 | 1,800,000 |
Implication/Risk
- It indicates non-compliance with relevant BRPD Circular; and
- Assets have been overstated in the Balance Sheet.
Recommendation:
The bank management should take necessary steps to control over Loans and Advances. So that loan limit does not exceed the sanctioned limit.
FINDINGS # 14
FIXED ASSETS RECORD IN THE BRANCH NOT MAINTAINED PROPERLY
Fact:
While checking branch accounts we found the following irregularities committed in fixed asset management:
- Costs of fixed assets are not available in ledger.
- As per closing circular of the Bank, the branch management should conduct physical verification of fixed assets at least once in a year. We found that no branch has complied with the said circular.
- In some cases fixed assets register was not prepared / updated regularly.
- In some cases identification number was not mentioned on fixed assets.
Implication/Risk
- It indicates non-compliance with the policy of the bank regarding fixed assets management.
- It may enhance the scope of misuse of fixed assets.
Recommendation:
Necessary steps should be taken to strengthen control over fixed assets and conduct yearly physical verification of fixed assets.
FINDINGS # 15
DAILY CASH BALANCE EXCEEDED THE APPROVED LIMIT
Fact:
During our audit we found that in most of the cases cash in vault exceeded the approved limit as fixed by Head Office. Some instances are given below:
Branch Name | Date | Holding Cash | Approved Limit | Excess over Volt Limit |
Ramna Crop. Br. | 18.02.2010 | 41.09 | 37.47 | 3.62 |
20.03.2010 | 52.02 | 39.93 | 12.09 | |
05.07.2010 | 53.01 | 39.93 | 13.08 | |
24.08.2010 | 64.33 | 40.25 | 24.08 | |
09.12.2010 | 38.58 | 37.47 | 1.11 | |
29.12.2010 | 46.08 | 37.62 | 8.46 | |
Foreign Exchange Crop. Br. | 28.01.2010 | 2,293.84 | 612.60 | 1681.24 |
05.05.2010 | 1,413.68 | 650.72 | 762.96 | |
31.07.2010 | 1,291.89 | 742.11 | 549.78 | |
09.10.2010 | 1,912.14 | 709.39 | 1202.75 | |
08.12.2010 | 2,735.94 | 596.98 | 2138.96 |
Branch Name | Date | Holding Cash | Approved Limit | Excess over Volt Limit |
Thana Road Branch, Bogra. | 31.01.2010 | 1110.86 | 26.12 | 1084.74 |
28.02.2010 | 436.17 | 26.58 | 409.59 | |
11.03.2010 | 240.91 | 32.90 | 208.01 | |
12.04.2010 | 308.75 | 26.23 | 282.52 | |
30.06.2010 | 757.02 | 29.23 | 727.79 | |
13.09.2010 | 461.04 | 49.72 | 411.32 | |
29.09.2010 | 530.08 | 18.94 | 511.14 | |
14.11.2010 | 326.51 | 38.35 | 288.16 | |
30.11.2010 | 889.77 | 37.57 | 852.2 | |
30.12.2010 | 511.74 | 31.42 | 480.32 | |
Baburhat Br. Narayangonj. | 18.01.2010 | 22.17 | 8.40 | 13.87 |
04.02.2010 | 26.71 | 9.05 | 17.66 | |
11.05.2010 | 37.79 | 10.52 | 27.27 | |
15.06.2010 | 45.52 | 9.63 | 35.89 | |
28.06.2010 | 36.56 | 10.81 | 25.75 | |
31.12.2010 | 32.94 | 6.81 | 26.13 | |
Bangshal Br. Dhaka | 04.01.2010 | 22.90 | 12.08 | 10.82 |
10.02.2010 | 62.00 | 14.16 | 47.84 | |
03.06.2010 | 49.83 | 42.99 | 6.84 | |
05.09.2010 | 61.25 | 10.67 | 50.58 | |
28.12.2010 | 66.43 | 28.09 | 38.34 | |
Brahmanbaria Br. Comilla. | 18.01.2010 | 40.58 | 8.50 | 32.08 |
12.04.2010 | 43.08 | 8.88 | 34.20 | |
10.08.2010 | 53.65 | 14.03 | 39.62 | |
22.11.2010 | 54.62 | 16.81 | 38.81 | |
30.12.2010 | 39.11 | 14.13 | 24.98 | |
Choto Bazar Branch, Mymensingh. | 19.05.2010 | 245.59 | 30.29 | 215.30 |
25.05.2010 | 215.55 | 31.36 | 184.18 | |
28.06.2010 | 270.87 | 15.46 | 255.40 | |
29.06.2010 | 381.50 | 15.90 | 365.34 | |
22.09.2010 | 260.03 | 46.85 | 213.17 | |
Faridpur Br. Faridpur. | 30.05.2010 | 242.83 | 36.18 | 206.25 |
27.06.2010 | 286.92 | 43.18 | 243.74 | |
28.06.2010 | 312.52 | 43.18 | 269.34 | |
23.09.2010 | 182.46 | 36.23 | 146.23 | |
30.12.2010 | 250.43 | 40.68 | 209.75 |
Branch Name | Date | Holding Cash | Approved Limit | Excess over Volt Limit |
G L Roy Road Br. Rangpur. | 19.01.2010 | 203.34 | 11.71 | 191.63 |
23.03.2010 | 185.96 | 03.08 | 182.88 | |
25.03.2010 | 216.16 | 09.45 | 206.71 | |
09.05.2010 | 156.57 | 21.90 | 134.67 | |
13.07.2010 | 176.82 | 15.84 | 160.98 | |
30.08.2010 | 274.37 | 18.81 | 255.55 | |
Gabtoli Br. Bogra. | 31.05.2010 | 15.55 | 8.12 | 7.43 |
30.06.2010 | 22.58 | 6.63 | 15.95 | |
05.07.2010 | 31.70 | 7.37 | 24.33 | |
27.09.2010 | 24.38 | 6.40 | 17.98 | |
30.12.2010 | 10.09 | 6.09 | 4.00 | |
Gulshan Br. Dhaka. | 27.01.2010 | 71.35 | 59.83 | 11.52 |
28.03.2010 | 95.53 | 24.72 | 70.80 | |
30.06.2010 | 84.28 | 57.29 | 26.99 | |
29.08.2010 | 112.73 | 40.20 | 72.52 | |
28.11.2010 | 74.78 | 59.68 | 15.10 | |
Haragasa Br. Rangpur. | 24.02.2010 | 23.64 | 8.19 | 15.45 |
26.04.2010 | 34.70 | 8.19 | 26.51 | |
12.07.2010 | 33.16 | 8.19 | 24.97 | |
22.09.2010 | 27.27 | 8.19 | 19.08 | |
03.10.2010 | 27.93 | 8.19 | 19.74 | |
22.12.2010 | 34.47 | 8.19 | 26.28 | |
Imamgonj Br. Dhaka. | 11.03.2010 | 71.56 | 13.99 | 57.56 |
08.04.2010 | 66.95 | 17.55 | 49.39 | |
22.04.2010 | 78.01 | 19.44 | 58.56 | |
Islampur Br. Dhaka. | 07.01.2010 | 93.42 | 39.22 | 54.20 |
19.01.2010 | 122.56 | 100.00 | 22.56 | |
26.01.2010 | 112.23 | 100.00 | 12.23 | |
01.04.2010 | 100.78 | 31.76 | 69.02 | |
05.05.2010 | 121.68 | 100.00 | 21.68 | |
Jamalpur Br. Jamalpur. | 21.09.2010 | 62.31 | 8.21 | 54.10 |
03.10.2010 | 67.89 | 9.31 | 58.58 | |
10.10.2010 | 66.65 | 6.88 | 59.77 | |
25.10.2010 | 81.67 | 23.42 | 58.25 | |
21.11.2010 | 55.31 | 13.80 | 41.51 | |
30.12.2010 | 25.25 | 13.59 | 11.66 | |
Joydebpur Br. Gazipur. | 24.01.2010 | 95.06 | 20.71 | 74.35 |
25.01.2010 | 100.11 | 24.08 | 76.03 | |
07.02.2010 | 82.09 | 23.09 | 59.00 | |
08.02.2010 | 102.44 | 23.88 | 78.56 |
Branch Name | Date | Holding Cash | Approved Limit | Excess over Volt Limit |
Kustia Br. Kustia. | 21.06.2010 | 66.42 | 19.95 | 46.47 |
15.07.2010 | 51.66 | 15.84 | 35.81 | |
05.09.2010 | 78.63 | 70.25 | 8.37 | |
24.10.2010 | 56.78 | 17.44 | 39.34 | |
07.11.2010 | 69.84 | 24.42 | 45.51 | |
Madaripur Br. Faridpur. | 21.01.2010 | 37.77 | 14.54 | 23.23 |
25.02.2010 | 26.39 | 13.43 | 12.96 | |
13.05.2010 | 22.15 | 11.93 | 10.22 | |
08.07.2010 | 36.66 | 16.86 | 19.80 | |
Maidandighi Br. Dinajpur. | 17.08.2010 | 9.49 | 8.23 | 1.26 |
29.08.2010 | 9.72 | 7.25 | 2.47 | |
08.09.2010 | 11.89 | 7.93 | 3.96 | |
Market Br. Moulavibazar. | 25/01/2010 | 18.67 | 6.32 | 12.35 |
02/02/2010 | 20.43 | 6.27 | 14.16 | |
25/03/2010 | 14.70 | 6.83 | 7.87 | |
18/04/2010 | 16.91 | 6.69 | 10.22 | |
Mirabazar Br. Sylhet. | 06.01.2010 | 22.19 | 15.65 | 6.54 |
10.03.2010 | 25.73 | 16.70 | 9.03 | |
23.04.2010 | 26.42 | 17.12 | 9.22 | |
23.06.2010 | 40.29 | 17.56 | 22.73 | |
Narsingdi Br. Narayangonj. | 10/03/2010 | 41.34 | 12.39 | 28.95 |
25/05/2010 | 65.71 | 14.35 | 51.36 | |
14/07/2010 | 52.00 | 13.86 | 38.14 | |
Nimtala Br. Diajpur. | 02/06/2010 | 23.92 | 7.80 | 16.12 |
06/06/2010 | 27.86 | 7.80 | 20.06 | |
10/06/2010 | 26.99 | 7.80 | 19.19 | |
30/12/2010 | 104.93 | 40.31 | 64.62 |
Implication/ Risk
- It indicates non-compliance with policies and instructions of the Bank; and
- It reflects weaknesses in internal control system.
Recommendation:
Bank should ensure compliance with the approved cash holding limit or refix the daily cash holdings according to the need of branches.
FINDINGS # 16
DEMAND DRAFT (DD) PAID WITHOUT ADVICE FOR LONG TIME
Fact:
While checking payment Demand Draft (DD) we found that, in some cases Demand Draft (DD) paid without advice for long time. But the management of the branch did not take any initiatives for collecting advice.
Implication/ Risk
Payment of Demand Draft (DD) without receiving the advice financial anomalies/complicacy may arise.
Recommendation:
Steps should be taken to collect advice before payment.
FINDINGS # 17
INSURANCE POLICY WAS NOT TAKEN FOR CASH HOLDING
Fact:
While checking branch accounts we found that no insurance policy was taken by the Branch covering the risk for holding cash on counter and cash in transit.
Implication/Risk
It may enhance the risk of holding cash at branch level.
Recommendation:
Bank should ensure that adequate insurance coverage for cash at branch level is taken.
FINDINGS # 18
ACCOUNT OPENING PROCEDURES
Fact:
While checking branch accounts we found that the account opening procedures with regard to current and savings deposits were not followed properly. Instances are given below:
- i. Photograph & Certificate have not been found;
- ii. Account has been opened without initial deposits;
- iii. Tax certificate not found;
- iv. Nominee Photograph has not been found;
- v. Photograph & Certificate have not been found;
- vi. KYC form was not signed / found;
- vii. Nationality Certificate was not found.
Implication/ Risk
- It indicates non-compliance with the policy of the Bank regarding account opening procedures;
- It may encourage money laundering activities; and
- Account holders identification can not be ensured.
Recommendation:
The bank should take proper initiatives to complete the documentation.
FINDINGS # 19
PAY ORDERS AND PAY SLIPS BALANCE REMAINED UNADJUSTED
Fact:
While checking branch accounts we found that pay orders & pay slips balance in the branch offices of the bank remained unadjusted for a long period of time.
Recommendation:
We suggest that the management should review the status of the unadjusted balances in each month and take necessary steps to settle the issue. Besides this, Head Office should introduce necessary policy & procedure requiring the Branches for its proper controlling, reporting to authority concerned and keeping records as evidence and reference.
FINDINGS # 20
HALF YEARLY BALANCE CONFIRMATION CERTIFICATE
Fact:
As per BRPD Circular # 6/ 1998, 9/ 1998, 13/1999 and 4/2001 of Bangladesh Bank each branch of the bank is required to issue half yearly balance confirmation certificate to all current and savings depositors. But while checking this in branches we found that in most of the cases branch management did not send balance confirmation certificates to the savings and current deposit account holders. Some instances are given below:
Branch name | Type of accounts | No. of Accounts | Certificate Issued |
Ramna Corporate Branch | Current Account | 955 | 123 |
Savings Account | 5,338 | 207 | |
Rupali Sadan Corporate Branch | Current Account | 2,553 | Nil |
Savings Account | 4,861 | Nil | |
B.B Avenue Branch | Current Account | 780 | 163 |
Savings Account | 3,201 | 426 | |
Foreign Exchange Branch | Current Account | 2,390 | Nil |
Savings Account | 4,138 | Nil |
Implication/Risk
It indicates non-compliance with the Bangladesh Bank circulars.
Recommendation:
The bank should ensure that the relevant circulars of Bangladesh Bank are complied by each branch.
FINDINGS # 21
MONEY-LAUNDERING ACTIVITIES
Fact:
In some cases, there was no proper system of maintaining separate files for various anti-money laundering related activities and communications.
Implication/Risk
This may result in happening of unwarranted incidence regarding money laundering which may damage reputation of the bank.
Recommendation
The bank management should take proper steps in this regard.
FINDING # 22
LOAN SANCTIONING, DOCUMENTATION, DISBURSEMENT AND UTILIZATION PROCEDURES
Fact:
We observed some irregularities in sixty selected branches in respect of loan sanctioning, documentation, disbursement and utilization procedures. Instances are given below:
- Insurance policy for natural disaster was not available;
- Audited financial statements of the borrowers were not found;
- Updated trade license of the borrowers were not available;
- Monthly inspection report was not found;
- Latest CIB report was not available;
- In some cases revenue stamp was not affixed on promissory note;
- Updated tax clearance certificates of the borrowers were not obtained,
- Credit Risk Grading Score was not available;
- Third party valuation report for security mortgage was not available;
- Updated land development tax receipt was not available;
- TIN certificate was not found;
- Updated land development tax receipt no found;
- VAT registration certificate was not found;
- Letter of guarantee was not found;
- “Letter of Disclaimer” not obtained from land lord of godown;
- Original deed was not obtained;
- Net worth statement was not found;
- Stock valuation report was not found; and
- Charged documents were not filled up properly.
Implication/Risk
It may create risk in the recovery of given loans and advances.
Recommendation:
The branch management should be vigilant about the aforesaid matters before sanction, documentation, disbursement and utilization of loans and advances in order to ensure that the outstanding amount can be fully recovered in due course of time.
FINDING # 23
CLASSIFICATION OF LOANS AND ADVANCES AT BRANCH LEVEL
Fact:
In some cases to classify loans and advances the branches did not fully follow the related BRPD Circular No. 05 dated 05 June 2006.
Recommendation:
The branch management should classify the loans and advances as per BRPD Circular No. 05 dated 05 June 2006.
FINDING # 24
ACCOUNTS BALANCE FALL BELOW THE PRESCRIBED LIMIT
Fact:
We observed that in some cases the accounts balance came down the prescribed limit i.e. below Tk.500 and Tk. 1,000 for saving deposit and current deposit respectively. Some examples are given below:
Name of Branches | Accounts Holder | Account No. | Account Type | Minimum deposit to be kept | Account Balance |
Gulshan Br. Dhaka.
| Md. Abdul Hakim | 100001444 | Savings | 500 | 89.50 |
Md. Ataur Rahman | 100004582 | Savings | 500 | 7.50 | |
Bhagabati Ghosh | 100004802 | Savings | 500 | 46.75 | |
Abdul Awal | 100006247 | Savings | 500 | 39.00 | |
Md. Abdul Gafur | 100007207 | Savings | 500 | 31.00 | |
Mrs. Zakia Akter | 100007926 | Savings | 500 | 79.50 | |
Bitush Dibra | 100008056 | Savings | 500 | 26.00 | |
Name of Branches | Accounts Holder | Account No. | Account Type | Minimum deposit to be kept | Account Balance |
Gulshan Br. Dhaka. | Md. Selim Reza | 100008278 | Savings | 500 | 8.72 |
Mitho Chowdhury | 100008474 | Savings | 500 | 63.00 | |
Mrs. Nargis Amin | 100009122 | Savings | 500 | 44.50 | |
Md. Abdul Hakim | 100009491 | Savings | 500 | 33.74 | |
Md. Abdul Aziz | 100009721 | Savings | 500 | 65.00 | |
Hasina Parvez | 100010079 | Savings | 500 | 0.25 | |
Khan Md. Gulap | 100010988 | Savings | 500 | 23.50 | |
Mrs. Fagilatun Nessa | 100011049 | Savings | 500 | 21.00 | |
Md. Shahjahan | 100011191 | Savings | 500 | 15.00 | |
Moatj Uddin Khandaker | 100011615 | Savings | 500 | 57.00 | |
Mrs. Shahanaz Begum | 100012948 | Savings | 500 | 2.50 | |
Joydebpur Br. Gazipur | Borhan Uddin | 100010595 | Savings | 500 | 137 |
Abu Siddique | 100011928 | Savings | 500 | 161 | |
Abdul Majid | 100020815 | Savings | 500 | 285 | |
Md. Kamrujjaman (Dulal) | 100032398 | Savings | 500 | 147 | |
Harun-ur-Rashid | 100035569 | Savings | 500 | 280 | |
Mrs. Majeda Akter | 100035801 | Savings | 500 | 78 | |
Rahima Khathun | 100037982 | Savings | 500 | 121 | |
Kazi Nazrul Islam | 100058488 | Savings | 500 | 56 | |
Md. Azgar Ali Khan | 100040001 | Savings | 500 | 353 | |
Md. Aminul Hoque | 100053823 | Savings | 500 | 464 | |
Tomalika Jewelers | 200027527 | Current | 1000 | 280 | |
M/s H.N. Construction | 200027728 | Current | 1000 | 430 | |
Shavapati | 200027769 | Current | 1000 | 30 | |
M/s. Shuvo Computers | 200028062 | Current | 1000 | 655 | |
Volanath Nonia | 200015608 | Current | 1000 | 9 | |
Islampur Br. Dhaka | M/s. Thakur Gaon Bashra BItan | 200025166 | Current | 1000 | 396 |
Samsul Alam | 200028042 | Current | 1000 | 700 | |
M/s. Mukesh Enterprise | 200050581 | Current | 1000 | 620 | |
Md. Unus Miah | 100032625 | Savaings | 500 | 28 | |
Md. Ali Sheikh | 100036417 | Savaings | 500 | 188 | |
Md. Shahnewaz | 100059719 | Savaings | 500 | 85 | |
Maria Rahman | 100059761 | Savaings | 500 | 35 | |
Shyamoli Br. Dhaka. | M/s Bikrampur Still House | 200014423 | CD | 1000 | 415 |
J.C Corporation | 200015156 | CD | 1000 | 490 | |
M.R Enterprese | 200015237 | CD | 1000 | 400 | |
M/s Sikder & Songs | 200015387 | CD | 1000 | 400 | |
Syed Ekramul Huq | 200015428 | CD | 1000 | 400 | |
Nirapod Pilling & Constraction | 200015498 | CD | 1000 | 430 | |
Saied Shadath Hossain | 200015528 | CD | 1000 | 400 | |
Al- Amin Asso. | 200015898 | CD | 1000 | 400 | |
Parves Trade Agence | 200015608 | CD | 1000 | 400 | |
M/s Shahnaz Enterpise | 200015709 | CD | 1000 | 400 | |
Name of Branches | Accounts Holder | Account No. | Account Type | Minimum deposit to be kept | Account Balance |
Yousuf Market Br. Dhaka. | MD. Mansur Bepari | 100036488 | Savings | 500 | 476.00 |
Mohiuddin Mojibur | 100037083 | Savings | 500 | 322.00 | |
Abeda Sultana | 100037447 | Savings | 500 | 28.00 | |
Nasrin Laila | 100037517 | Savings | 500 | 20.00 | |
MD. Kamal Chowdhury | 100039456 | Savings | 500 | 486.00 | |
Swapna Kumar Howla | 100039466 | Savings | 500 | 21.00 | |
Sufia Begum | 100041253 | Savings | 500 | 117.00 | |
Shamima yesmin | 100041264 | Savings | 500 | 190.00 | |
MD. Bahar | 100041274 | Savings | 500 | 290.00 | |
MD. Nazmul Hossain | 100042728 | Savings | 500 | 72.29 | |
Kazi Sadia Arefin | 100042965 | Savings | 500 | 60.00 | |
Shanta Islam | 100030191 | Savings | 500 | 97.00 | |
Mrs. Rezia Enterprisse | 100030512 | Current | 1000 | 548.00 | |
M/S Yousuf Enterprise | 100031125 | Current | 1000 | 604.00 | |
Kustia Br. Kustia. | Md. Rasel Sheikh | 100097429 | Savings | 500 | 10 |
Sk Abdul Aziz | 100001926 | Savings | 500 | 60 | |
Anowara Khatun | 100006398 | Savings | 500 | 17 | |
Omita Rani Saha | 100023289 | Savings | 500 | 42 | |
Munshi Shahidul Rahman | 100025905 | Savings | 500 | 4 | |
Sree Dhirandra Nath Biswas | 100039882 | Savings | 500 | 50 | |
A L Gen. Omar Ali | 100028763 | Savings | 500 | 12 | |
Mrs. Nurzahan Begum | 100033418 | Savings | 500 | 59.73 | |
Aklima Khatun | 100024915 | Savings | 500 | 89 | |
Madaripur Br. Madaripur. | A.B.M Nazrul Islam Miah | 100000033 | Savings | 500 | 72.00 |
Abdul Wazed | 100000198 | Savings | 500 | 46.00 | |
Paresh Chandra Dey | 100000362 | Savings | 500 | 12.00 | |
Mesbah Uddin Ahmed | 100000484 | Savings | 500 | 26.00 | |
Mujibur Rahman | 100000701 | Savings | 500 | 50.00 | |
Abed Sardar | 100001562 | Savings | 500 | 72.00 | |
Kaka Miah | 100051814 | Savings | 500 | 49.00 | |
Mussammad Monowara Begum | 100055742 | Savings | 500 | 231.00 | |
Md. Nurul Haque Bapari | 100056125 | Savings | 500 | 181.00 | |
Delowar Hossain | 100056216 | Savings | 500 | 100.00 | |
Faridpur Br. Faridpur. | M/s Padma Enterprise | 200012754 | Current | 1000 | 365 |
M/s Sohid Enterprise | 200016161 | Current | 1000 | 354 | |
M/s Madhob Gobindo Saha | 200019216 | Current | 1000 | 386 | |
Shamoli Abashik Hotel | 200022382 | Current | 1000 | 208 | |
M/s Mehedi Enterprise | 200021427 | Current | 1000 | 230 | |
M A Zaman | 200024854 | Current | 1000 | 396 | |
M/s Punom Gold | 200024965 | Current | 1000 | 250 |
Implication/Risk
i. It indicates non-compliance with the circular issued by the bank; and
ii. It indicates weakness in internal control system.
Recommendation:
The branch management should take initiative so that account balances do not fall below the prescribed limit and the accounts showing nil balance should be closed.
FINDING # 25
STATIONERY MANAGEMENT PROCEDURE
Fact:
We observed the following irregularities regarding stationery management:
- Physical verification of stock of stationery was not conducted by the Branch Management; and
- Stationery register was not updated regularly.
Implication/Risk
- It indicates non-compliance with policy of the Bank regarding stationery management; and
- It may enhance scope of misuse of stationery items.
Recommendation:
The branch management should take initiatives to enhance control over stationery management.
FINDING # 26
ABOVE 10 YEARS INOPERATIVE ACCOUNT BALANCE NOT TRANSFERRED TO BANGLADESH BANK
Fact:
In course of our audit period we observed that there were many inoperative account balances above 10 year but not transferred to Bangladesh Bank. . Some examples are given below:
Name of Branch | Account Holders Name | Account No. | Last Transaction Date | Amount in Tk. |
Purana Paltan Br. Dhaka. | Savings | 100001355 | 01.07.2000 | 690.00 |
Savings | 100001552 | 01.07.2000 | 27.75 | |
Savings | 100001896 | 01.07.2000 | 1300.00 | |
Savings | 100002698 | 01.07.2000 | 19.06 | |
Savings | 100003823 | 01.07.2000 | 27.00 | |
Savings | 100005051 | 01.07.2000 | 38.50 | |
Savings | 100010069 | 01.07.2000 | 33.19 | |
Savings | 100011292 | 01.07.2000 | 1869.00 | |
Savings | 100011524 | 01.07.2000 | 43.99 | |
Savings | 100011716 | 01.07.2000 | 1285.75 | |
Savings | 100013166 | 01.07.2000 | 32.71 | |
Savings | 100013342 | 01.07.2000 | 39.25 | |
Savings | 100014157 | 01.07.2000 | 909.00 | |
Savings | 100014655 | 01.07.2000 | 47.88 | |
Bhairabbazar Br. Mymensingh. | Savings | 61 | 4464.00 | |
Savings | 116 | 3449.00 | ||
Savings | 182 | 1942.00 | ||
Savings | 263 | 1714.00 | ||
Savings | 335 | 1231.00 | ||
Savings | 474 | 5508.00 | ||
Savings | 517 | 968.00 | ||
Savings | 526 | 1238.00 | ||
Savings | 577 | 2744.00 |
Recommendation:
Steps should be taken to transfer above 10 years account balances to Bangladesh Bank.
FINDIND # 27
DEPRECIATION CHARGE ON FIXED ASSETS
Fact:
During the period under audit we observed that some branches were not properly charge depreciation on fixed assets.
Implication / Risk
- It indicates non-compliance with the circular issued by Rupali Bank Limited;
- It indicates non-compliance with the depreciation policy of the bank;
- It may overstate/understate in the financial statements of the Rupali Bank Ltd;
Recommendation:
Necessary steps should be taken to comply with the depreciation policy of Rupali Bank Limited.
FINDIND # 28
TRANSFER POLICY
Fact:
During the period under audit we observed, in some branches employees are being working for more than three years. Some examples are given below:
Name of Branch | Name of Staff | Designation | Joining Date | Duration as on 31.12.09 |
Ramna Corporate Br. | Md. S. M. Abu Bakar | Principal Officer | 12.04.1999 | Over 11 Years |
Md. Sagir Ahmed Munsi | Principal Officer | 28.05.2005 | Over 5 Years | |
Md. Kamruzzaman | Senior Officer | 10.04.2006 | Over 4 Years | |
Abdul Mannan Miah | Officer | 20.11.1983 | Over 27 Years | |
Elephant Road Branch | Mariful Islam | Principal Officer | 05.01.2006 | Over 5 Years |
Md. Azharul Haque | Office Assistant | 15.08.1998 | Over 12 Years | |
Foreign Exchange Corporate Branch | Md. Shahab Uddin | Senior Principal Officer | 05.08.2004 | Over 6 Years |
Md. Ali Hossain | Principal Officer | 14.11.2005 | Over 5 Years | |
Prokrity Ranjan | Principal Officer | 21.04.2006 | Over 4Years | |
Md. Asgar Hossain | Senior Officer | 26.06.2001 | Over 9 Years |
Implication / Risk
It indicates non-compliance with the circular issued by Rupali Bank Limited.
Employees might feel monotony to work in same place for years together;
Employees of the bank are being deprived of getting adequate training and experience of different work; and
Control over employees may be hampered.
Recommendation:
The bank management should strictly follow transfer policy in order to ensure proper utilization of employees and to have a well trained up workforce.
FINDINGS# 29
Loans remaining as Bad/Loss over 5 years but not written off.
Fact:
Name of Branches | Loan Account No. | Name of Borrower | Outstanding Balance on 31.12.2010 | Type of Loan | Account Open Date. | Expire Date. | Period of Arrear in Years. |
Joydebpur Branch, Gazipur | 500000039 | M/s. Kafil Traders | 38934.00 | CC(Hypo) | 12.10.1988 | 30.04.1989 | 21Years and 8 Months. |
500001092 | M/s. Jabeda Cosmetics | 10505.00 | CC(Hypo) | 30.04.2003 | 02.10.2003 | 7 Years and 2 Months. | |
500000109 | M/s. Nazma Cloth Store | 453821.50 | CC(Hypo) | 03.11.1991 | 30.05.1992 | 18 Years and 7 Months. | |
500000865 | M/s, New Kalam Bostraloy & Germents. | 671945.00 | CC(Hypo) | 16.01.1997 | 15.01.1998 | 12 Years and 11 Months. | |
450006395 | Osini Kumar Shaha. | 75696.00 | Overdraft | 21.09.1983 | 21.03.1984 | 26Years and 9 Months | |
450014643 | Nukul Chandra Gupon. | 28681.00 | Overdraft | 24.08.1989 | 23.02.1990 | 20 Years and 10 Months | |
450020746 | M/s. AFM Najim Uddin. | 513337.00 | Overdraft | 09.04.1997 | 09.04.1997 | 13 Years and 8 Months | |
Bangshal Branch, Dhaka | 500000064 | M/s. Motiur Rahman | 1,149,455.08 | CC (Hypo) | – | 12.11.2003 | 7 Years & 1 Month |
Bhairab Bazar Branch, Mymensingh.
| 460000157 | M/s Sourav General Store | 32839 | Overdraft | 27/01/1987 | 27/07/1987 | 23 Years and 5 months |
460000175 | M/s Hajee Kashem Ali Miah | 8927 | Overdraft | 01/12/1969 | 31/05/1970 | 40 Years and 7 months |
We observed that in following loan and advances were classified as bad for more than five (5) years but not written off as required by BRPD circular # 02 dated 14 January 2006. Details are given below:
Name of Branches | Loan Account No. | Name of Borrower | Outstanding Balance on 31.12.2010 | Type of Loan | Account Open Date. | Expire Date. | Period of Arrear in Years. |
TCB Bhaban Branch, Dhaka. | 500000218 | AX-TRADE | 1395736.00 | Cash Credit(Hypo) | 03.05.2001 | 10.12.2003 | 7 Years. |
500000268 | M.N Corporation. | 6577034.00 | Cash Credit(Hypo) | 19.10.2002 | 19.02.2004 | 6 Years and 11 Months. | |
500000278 | M/S Urmi Traders. | 1394388.62 | Cash Credit(Hypo) | 13.03.2003 | 05.09.2004 | 6 Years and 3 Months. | |
500000298 | Chorus Fashions Ltd. | 1180050.00 | Cash Credit(Hypo) | 20.03.2004 | 15.03.2005 | 5 Years and 9 Months. | |
450000041 | Saiful Ahmed | 444982.00 | Overdraft | 12.09.1996 | 01.10.2000 | 10Years and 2 Months | |
450000053 | M/S Rafi Engineering. | 521162.00 | Overdraft | 25.09.1994 | 01.10.2000 | 10Years and 2 Months | |
450000095 | Benajir Ahmed | 3539505.78 | Overdraft | 12.09.1997 | 01.10.2000 | 10 Years and 2 Months | |
450000105 | Sharif Hossain | 963359.50 | Overdraft | 10.09.1997 | 01.10.2000 | 10 Years and 2 Months | |
450000176 | Md. Nazrul Islam | 401458.40 | Overdraft | 07.12.1997 | 01.10.2000 | 10 Years and 2 Months | |
450000207 | M/S Rocks & Rocks. | 60454.00 | Overdraft | 30.12.1999 | 01.03.2001 | 9Years and 9 Months |
Name of Branches | Loan Account No. | Name of Borrower | Outstanding Balance on 31.12.2010 | Type of Loan | Account Open Date. | Expire Date. | Period of Arrear in Years. |
Choto Bazar Branch, Mymensingh | 450031219 | Md. Bazlur Rahman | 29481.93 | OD | 04.11.1977 | 30.12.1978 | 32 Years. |
450048447 | M/s. Anila Traders | 37916.00 | OD | 29.04.1981 | 29.06.1982 | 29 Years and 6 Months. | |
500000048 | M/s. Bina Pani Book Depo | 124427.00 | CC (Hypo) | 19.12.1984 | 19.06.1985 | 26 Years and 6 Months. | |
Kustia Branch, Kustia. | 490000014 | M/s Mohini Mills Ltd. | 297415.00 | C C ( Pledge) | 01.01.1995 | 01.01.1996 | 15 Years and 2 Months. |
500014553 | M/s Gulam Mostafa | 563261.70 | C C ( Hypo) | 21.09.1997 | 21.09.1998 | 12 Years and 5 Months. | |
500015755 | M/s Afjal Hossain | 150000.00 | C C ( Hypo) | 19.11.2003 | 19.12.2004 | 6 Years and 2 Months. | |
500022258 | M/s Jesa Enterprise | 171714.00 | C C ( Hypo) | 08.02.2003 | 08.08.2003 | 7 Years and 6 Months. | |
500023991 | M/s Abhijat Garments | 81721.00 | C C ( Hypo) | 03.08.2004 | 03.08.2005 | 5 Years and 6 Months | |
Tangail Branch, Tangail.
| 450018712 | M/s Hasan Store | 8394.00 | Overdraft | 21/08/1990 | 21/08/1991 | 21 Years and 4 month |
450022971 | Mr. Gour Chandra Bosak | 5120.00 | Overdraft | 27/10/1993 | 27/10/1994 | 18 Years and 4 month |
Name of Branches | Loan Account No. | Name of Borrower | Outstanding Balance on 31.12.2010 | Type of Loan | Account Open Date. | Expire Date. | Period of Arrear in Years. |
Thana Road Branch, Bogra. | 680000016 | Dr.Nani Gopal Ghosh | 113,892 | Project Loan | 19.02.1986 | 19.02.1987 | 23Years and 9 Months. |
680000023 | M/s Shishir Shilpa | 817,740 | Project Loan | 04.09.1986 | 04.11.1987 | 23Years. | |
450000669 | M/s Hafiz & Brothers | 52,365 | Overdraft | 02.10.1983 | 02.04.1986 | 24Years and 7 Months. | |
450000087 | M/s Taj Brothers | 204,097.45 | Overdraft | 20.05.1983 | 20.11.1985 | 25 Years. | |
450000358 | M/s Monira Enterprise | 424,717 | Overdraft | 21.05.1987 | 21.11.1987 | 23 Years. | |
490000144 | M/s New Music Cornar | 1,188,565 | C C (Pledge) | 11.06.1988 | 05.12.1988 | 22 Years. | |
500000258 | M/s Sakawat Hossain | 1,358,288 | C C (Hypo) | 14.12.1987 | 15.06.1988 | 22Years and 5 Months | |
500000534 | M/s R Q Chemical Industries | 2,436,666 | C C (Hypo) | 23.02.2003 | 23.02.2004 | 6 Years and 9 Months | |
500000573 | M/s S R Bricks Manufacturing Co. | 1,311,273 | C C (Hypo) | 27.12.1987 | 30.06.1988 | 22 Years and 5Months | |
Market Branch, Moulvibazar.
| 700000011 | Kazi Kashem | 10759.00 | Rural Credit | 03.11.2002 | 03.11.2003 | 7 Years & 1 Month. |
700000023 | Konok Lal Dhar | 3922.00 | Rural Credit | 19.02.2002 | 19.08.2003 | 7 Years & 4 Months. | |
700000036 | Anukul Dhar | 4812.00 | Rural Credit | 19.02.2002 | 19.08.2003 | 7 Years & 4 Months. | |
700000048 | Chan Moni Dhar | 5628.00 | Rural Credit | 19.02.2002 | 19.08.2003 | 7 Years & 4 Months. | |
700000052 | Orbindo Datto(2002/05) | 5192.00 | Rural Credit | 19.02.2002 | 19.08.2003 | 7 Years & 4 Months. | |
700000062 | Erash Lal Deb(2001/7) | 3584.00 | Rural Credit | 26.08.2001 | 26.02.2003 | 7 Years & 10 Months. | |
700000073 | Md. Hannan Miah(2001/9) | 5337.00 | Rural Credit | 26.08.2001 | 26.02.2003 | 7 Years & 10 Months. |
Recommendation:
Management should take necessary steps to write off the lying Bad/ Loss for more than five (5) years as per the instructions of BRPD circular.
FINDINGS#30
Cash payment through invalid cheques :
Fact:
We found that in some cases the Branch has made some payments of cheques which lost their valid period. Some instances are given below.
Name of Branches | Account Type. | Account No. | Cheque Date. | Cheque No. | Payment Date. | Amount in Tk. |
Joydebpur Branch. | Current | 1787 | 03.01.2009 | 0597169 | 04.01.2010 | 15,258 |
Current | CC-17 | 23.08.2001 | CC-17 | 23.08.2010 | 4,000 | |
Paltan Branch. | Savings | 2084422 | 22.07.2009 | 4359548 | 11.01.2010 | 40,000 |
Savings | 100070955 | 21.07.2008 | 4678965 | 26.07.2010 | 12,400 | |
Faridpur Branch, Faridpur.
| Savings | 100084702 | 27.01.2008 | 4533841 | 27.01.2010 | 5,000 |
Savings | 100084914 | 05.01.2009 | 4532523 | 05.01.2010 | 3,950 | |
Savings | 100063697 | 05.01.2009 | 1399845 | 05.01.2010 | 10,000 | |
Savings | 100056648 | 17.01.2001 | 4533193 | 17.01.2010 | 1,500 | |
S T D | 92 | 17.01.2009 | 2423991 | 17.01.2010 | 220,000 | |
S T D | 92 | 11.01.2009 | 2423988 | 11.01.2010 | 420,000 | |
Mirabazar | Savings | 2057129 | 25.012009 | 0313608 | 25.01.2010 | 17,500 |
Nimtala Branch. | Savings | 9295 | 04.01.2008 | 0952703 | 04.01.2009 | 1,500 |
Savings | 9296 | 19.01.2008 | 6653569 | 19.01.2009 | 1,000 | |
Thana Road Branch. | Savings | 15901 | 06.01.2009 | 1158886 | 06.01.2010 | 3,700 |
Savings | 15901 | 07.01.2009 | 1158887 | 07.01.2010 | 1,400 | |
Savings | 403 | 07.01.2009 | 1951773 | 07.01.2010 | 200,000 | |
G L Roy Road. | Savings | 11286 | 03.01.2009 | 4791061 | 03.01.2010 | 13,000 |
Savings | 12571 | 21.01.2009 | 4791261 | 21.01.2010 | 1,000 |
Recommendation:
We strongly recommend that the Branch Management should be very careful so that these types of mistakes never recur.
FINDINGS#31
Cash payment through advanced dated cheques :
Fact:
It also came to our attention that in some cases the Branch made some payments against advanced dated cheque. Some instances are given below.
Name of Branches | Account Type. | Account No. | Cheque Date. | Cheque No. | Payment Date. | Amount in Tk. |
G L Roy Road. | Savings | 11972 | 04.12.2010 | 1177910 | 04.01.2010 | 65,000 |
Savings | 13147 | 05.12.2010 | 1179744 | 05.01.2010 | 1,200 | |
Joydebpur Branch. | Savings | 10003 | 22.10.2010 | 6238318 | 22.08.2010 | 10,000 |
Savings | 13373 | 23.09.2010 | 1992610 | 23.08.2010 | 30,000 | |
Savings | 3251 | 03.01.2024 | 1994352 | 10.01.2010 | 40,000 | |
Savings | 13373 | 24.09.2010 | 7200862 | 24.08.2010 | 35,000 | |
Islampur Branch | Savings | 10004128 | 10.10.2010 | 2808881 | 10.01.2010 | 10,000 |
Current | 200055866 | 28.01.2010 | 0264546 | 27.01.2010 | 60,000 | |
Current | 200060378 | 31.10.2010 | 0032724 | 31.01.2010 | 180,000 | |
Thana Road Branch, Bogra. | Savings | 5340 | 06.04.2010 | 2436099 | 06.01.2010 | 1,000 |
Savings | 4191 | 05.01.2010 | 2435897 | 04.01.2010 | 8,000 | |
Savings | 6136 | 05.01.2009 | 0283064 | 04.01.2010 | 2,000 | |
Savings | 15570 | 06.12.2010 | 2437285 | 06.01.2010 | 12,000 |
Recommendation :
We strongly recommend that the Branch Management should be very particular in payment of cheque. So that these type of irregularities may not recur in future.
FINDINGS # 32
Different dates were found on a single cheque :
Fact :
From our verification, we noticed that cash payment was made through cheque which contained two different dates having no initial. Detail is given below:
Name of Branches | Account Type | Cheque No. | Cheque Date | Amount in Tk. |
Purana Paltan Br. Dhaka | Savings | 4712281 | 11.01.2010 & 12.01.2010 | 20,000
|
Recommendation :
We strongly recommend that the Branch Management should be careful so that these types of mistakes never recur.
FINDINGS # 33
Cash Payment by overwriting cheque:
Fact :
From our observation we found that following cash payments were made through chaques which contained overwriting.
Name of Branches | Account Type | Account No. | Cheque No. | Cheque Date | Amount in Tk. |
Purana Paltan Br. | Savings | 100078707 | 9881833 | 11.01.10 | 6,500 |
Mirabazar Br. Sylhet. | Savings | 2055922 | 3190114 | 05.01.2010 | 17,000 |
Recommendation:
We suggest that the Branch Management should stop payment through this type of cheques in future.
FINDINGS # 34
Cash payment against defective cheques:
Fact :
During our audit we notified that in some cases the Branch made some payments through cheques which were not written in proper manner. Some instances are given below.
Name of Branches | Account Type. | Account No. | Cheque No. | Cheque Date. | Payment Date. | Amount in Tk. |
Mirabazar Br. Sylhet. | Savings | 2055447 | 1872934 | 05.01.0010 | 05.01.10 | 5,000 |
Savings | 2060342 | 3192687 | 05.01.0010 | 05.01.10 | 20,000 | |
Savings | 2039587 | 1872277 | 03.01.200010 | 03.01.10 | 10,000 | |
Current | 10236 | 0300149 | 11.1.0010 | 11.01.10 | 20,000 | |
Faridpur Br. | Savings | 100051542 | 4532176 | 3.1.210 | 03.01.2010 | 1,000 |
Savings | 100083431 | 4532895 | 21.0100 | 21.01.2010 | 2,000 | |
Bhairab Bazar Br. | Savings | 6432 | 07/01/010 | 3990992 | 07/01/2010 | 1,00,000 |
Savings | 4971 | 24/01/010 | 3990874 | 24/01/2010 | 10,000 | |
Current | 6162 | 24/01/0010 | 3990883 | 24/01/2010 | 1,000 |
Recommendation:
We strongly recommend that the Branch Management should be very particular in payment of cheque. So that these type of irregularities may not recur in future.
FINDINGS # 35
Outstanding pay order Balance:
Fact :
During our audit we observe a difference between the cumulative balance of individual ledger and balance shown in statement of affairs in respect of outstanding Pay orders. Details are shown below:
Name of Branches | Particulars | Taka |
Purana Paltan Br. | Balance as per statement of affairs Cumulative Balance as per ledger | 11,493,337.29 11,492,287.29 |
Difference Amount | 1,050.00 | |
Madaripur Br. Faridpur. | Balance as per statement of affairs | 2392340.00 |
Balance as per ledger | 5634797.00 | |
Difference Amount | 3242457.00 | |
G L Roy Road Br. Rangpur. | Balance as per ledger | 1049076.31 |
Balance as per statement of affairs | 910096.01 | |
Difference Amount | 138980.30 |
Recommendation:
The Management should take immediate steps to reconcile the Balance of Pay Order and rectify the accounts accordingly.
FINDINGS # 36
Outstanding Demand Draft Balance:
Fact :
During our audit, we observed a difference between the cumulative balance of Individual Ledger and balance shown in statement of affairs of Demand Draft. That is the balance of Demand Draft as per statement of affairs has been overstated.
Some instances are given below.
Name of Branches | Particulars | Taka |
Madaripur Br. Faridpur. | Balance as per statement of affairs | 710700.00 |
Balance as per ledger | 220454.81 | |
Difference Amount | 490245.19 | |
G L Roy Road Br. Rangpur. | Balance as per ledger | 9694447.30 |
Balance as per statement of affairs | 5853604.20 | |
Difference Amount | 3840843.31 | |
S K Road Br. Narayangonj. | Balance as per ledger | 692155.00 |
Balance as per statement of affairs | 793624.00 | |
Difference Amount | 101469.00 |
Recommendation:
The Management should take proper steps to reconcile the balance of the Demand Draft and rectify the accounts accordingly.
FINDINGS # 37
Balance of overdraft
Fact :
During our audit, we observed a difference between the cumulative balance of Individual Ledger and balance shown in statement of affairs of Overdraft. That is the balance as per statement of affairs has been overstated.
Some instances are given below.
Name of Branches | Particulars | Taka |
Yousuf Market Br. | Balance as per ledger | 4970.00 |
Balance as per statement of affairs | 64970.00 | |
Difference Amount | 60000.00 | |
Kustia Br. Kustia | Balance as per ledger | 5718678.00 |
Balance as per statement of affairs | 5374070.00 | |
Difference Amount | 344608.00 |
Recommendation:
The Management should take immediate steps to reconcile the balance on the Overdraft and rectified the accounts accordingly.
FINDINGS # 38
Balance of Loan
Fact :
During our audit, we observed a difference between the cumulative balance of Individual Ledger and balance shown in statement of affairs of Loans. That is the balance as per statement of affairs has been understated. Some instances are given below.
Name of Branches | Particulars | Taka |
Yousuf Market Br. Dhaka | Balance as per ledger | 15508509.92 |
Balance as per statement of affairs | 15448509.92 | |
Difference Amount | 60000.00 | |
Chotobazar Br. Mymensingh. | Balance as per statement of affairs | 34,105,588.31 |
Balance as per Ledger | 32,971,186.35 | |
Difference Amount | 1,134,401.96 |
Recommendation:
The Management should take immediate steps to reconcile the balance of the Loans and rectified the accounts accordingly.
FINDINGS # 39
Rupali Deposit Pension Scheme Two (RDPS-2)
Fact :
During our audit, we observed a difference between the cumulative balance of Individual Ledger and balance shown in statement of affairs of Rupali Deposit Pension Scheme-2 (RDPS-2).As per statement of affairs balance has been understated
Some instances are given below.
Name of Branches | Particulars | Taka |
TCB Bhaban Br. Dhaka | Balance as per ledger | 285,949.00 |
Balance as per statement of affairs | 275,482.00 | |
Difference Amount | 10,467.00 | |
Ramdia College Br. Gopalgonj | Balance as per ledger | 5407181.00 |
Balance as per statement of affairs | 5406681.00 | |
Difference Amount | 500.00 |
Recommendation:
The Management should take proper steps to reconcile the balance on the Rupali Deposit Pension Scheme-2 and rectified the accounts accordingly.
FINDINGS # 40
Statement of Non-existent Borrowers:
Fact :
During our audit, we found that a large number of loan sanctioned to various untraceable parties. Now those parties have no more existence. Some instances are given below. A list of non-existence parties are given below:
Name of Branches. | Name of Borrowers | Account Type | Loan Payment Date | Outstanding Amount |
Purana Paltan Branch, Dhaka.
| Ramna Dry Cleaners | O D | 13.12.76 | 0.22 |
Borna Bithi Prakashani | O D | 06.12.77 | 0.93 | |
Nur Industris | O D | 21.12.76 | 0.34 | |
Alpana Traders | O D | 10.01.80 | 0.52 | |
Suvana | O D | 04.09.90 | 0.22 | |
SAMCO Agency | O D | 18.02.80 | 0.15 | |
Wel Do Engineering | O D | 12.01.91 | 0.19 | |
Sumona Enterprise | O D | 14.11.90 | 0.88 | |
Delta Trading | O D | 02.08.86 | 0.59 | |
Sayed Shahana Sorwar | O D | 07.03.89 | 0.36 | |
Gulam Rabbani | O D | 01.01.89 | 0.25 | |
Trade Enterprise | O D | 24.11.92 | 0.02 | |
Bachhu & Sons | O D | 18.03.80 | 0.37 | |
Archar Excel | O D | 06.11.91 | 0.15 | |
Aggragati | O D | 12.02.95 | 0.03 | |
Gulshan Br. Dhaka. | Mhbub Hossain | OD | 02/07/1991 | 26.25 |
M/s Rafat International | OD | 01/08/1990 | 8.28 | |
M/s Hanifur Rahman | OD | 01/01/1992 | 3.15 | |
M/s Bandhan Associates | OD | 01/01/1992 | 0.29 | |
M/s Amar Desh | OD | 17/01/1999 | 0.39 | |
Nimtala Br. | Sydur Rahman | Not Found | 12.06.1979 | 0.26 |
Recommendation :
We recommend that Bank Management should take a step to realize this amount from the officers concern involved in sanctioning the Loans.
FINDINGS # 41
Pay Orders remained unclaimed for10 years:
Fact :
Pay Orders remained unclaimed for10 years and above but not transferred to Bangladesh Bank as per Section 35(i) Banking Companies Act, 1991.
Some instances are given below.
Name of Branch | Date of Issue | Pay Order No. | Outstanding Balance |
Bangshal Branch | 01.01.1978 | 000002 | 500.00 |
01.01.1978 | 000019 | 300.00 | |
01.01.1978 | 32/310 | 100.00 | |
24.01.2004 | 33/120 | 25.00 | |
24.01.2004 | 33/44 | 100.00 | |
Brahmanbaria Br. Comilla. | 14/04/1998 | POB/01/30/1246 | 820 |
15/11/1998 | POB/02/27/216 | 490 | |
14/12/1998 | POB/03/27/240 | 4000 | |
24/10/1999 | POB/04/28/259 | 150 | |
Chotobazar Br. Mymensingh. | 19.12.1996 | 833941/25/77 | 1070 |
08.11.1997 | 278778/27/676 | 20 | |
14.101998 | 037187/28/314 | 50 | |
29.07.1999 | 036644/28/371 | 750 | |
01.01.2000 | 036889/28/613 | 100 | |
08.04.2000 | 037512/29/195 | 20 | |
18.04.2000 | 037513/29/196 | 20 | |
Faridpur Br. Faridpur
| 22.09.1993 | 621250/22/342 | 50 |
28.09.1993 | 621256/22/348 | 50 | |
28.09.1993 | 621257/22349 | 50 | |
30.09.1993 | 621263/22/355 | 50 | |
30.09.1993 | 621264/22/356 | 50 | |
Name of Branch | Date of Issue | Pay Order No. | Outstanding Balance |
Gulshan Br. Dhaka. | 06/07/1998 | 196431/11 | 500.00 |
20/04/1999 | 197189/34 | 400.00 | |
20/04/1999 | 197190/35 | 400.00 | |
11/11/1999 | 197695/44 | 8000.00 | |
27/12/1999 | 197834/46 | 1200.00 | |
27/12/1999 | 197835/47 | 2000.00 | |
14/03/2000 | 403064/49 | 1169 | |
Haragach Br. Rangpur. | 31.01.1991 | 20/91 | 5 |
18.12.1991 | 20/125 | 80 | |
18.12.1991 | 20/126 | 180 | |
18.12.1991 | 21/13 | 80 | |
30.03.1992 | 21/76 | 150 | |
18.03.1995 | 24/42 | 26 | |
16.04.1996 | 25/57 | 15 | |
Islampur Br. Dhaka | 08.08.1999 | 28/373/327396 | 50 |
10.07.2000 | 29/301/536222 | 500 | |
30.10.200 | 29/428/53249 | 300 | |
21.11.2000 | 29/497/539320 | 50 | |
Kustia Br. Kustia. | 05.11.1998 | 837053/27/276 | 100,000 |
29.03.2000 | 972655/29/88 | 1,100 | |
29.03.2000 | 972656/29/89 | 1,800 | |
21.06.2000 | 972662/29/195 | 1,000 | |
11.10.2000 | 972877/29/310 | 3,000 | |
Purana Paltan Br. Dhaka | 31.12.1996 | 12/4 | 4250 |
31.12.1996 | 16/8 | 3000 | |
31.12.1997 | 20/19 | 10000 | |
31.12.1997 | 25/24 | 5496 | |
31.12.1998 | 113/46 | 6300 | |
31.12.1998 | 48/76 | 2297.26 | |
31.12.1998 | 27/1632 | 234956 | |
31.12.1999 | 182/156 | 55000 | |
31.12.2000 | 588393/181 | 9200 | |
21.12.2000 | 695455/247 | 75830 | |
07.11.2000 | 695178/245 | 19190 | |
TCB Bhaban Br. Dhaka | 05.05.1996 | 069589/3 | 100 |
02.07.1996 | 131619/6 | 1000 | |
06.08.1996 | 131751/11 | 2000 | |
17.06.1998 | 167492/55 | 500 | |
16.06.1997 | 157226/23 | 500 | |
08.12.1998 | 167931/89 | 840 | |
03.02.1999 | 339611/93 | 200 | |
10.05.1999 | 339971/103 | 700 | |
30.05.1999 | 407104/105 | 400 |
Recommendation:
We recommend the branch to transfer the outstanding balance of pay order to Bangladesh Bank as per rule.
FINDINGS # 42
Demand draft remained unclaimed for10 years:
Fact:
Demand draft remained unclaimed for10 years and above but not transferred to Bangladesh Bank as per Section 35(i) Banking Companies Act, 1991.
Some instances are given below:
Name of Branch | Date of Issue | Demand Draft No. | Outstanding Balance |
Brahmanbaria Br. Comilla. | 08/08/1993 | DDP/858131/22/30 | 600 |
26/10/1993 | DDP/858442/22/37 | 600 | |
11/12/1995 | DDP/127582/24/31 | 1000 | |
09/11/1998 | DDP/566752/27/29 | 750 | |
29/08/1999 | DDP/138685/28/21 | 600 | |
28/02/2000 | DDP/301654/29/01 | 750 | |
28/02/2000 | DDP/301660/29/07 | 750 | |
Chotobazar Br. Mymensingh. | 18.08.1996 | 394419/25/26 | 600 |
24.11.1996 | 353877/25/33 | 600 | |
24.11.1996 | 353880/25/36 | 600 | |
24.11.1996 | 353883/25/38 | 600 | |
24.11.1996 | 353884/25/40 | 600 | |
22.03.1997 | 141205/26/09 | 600 | |
G L Roy Road Br. Rangpur | 01.01.1939 | 0625996/100 | 600 |
09.01.1985 | 919393/14/10 | 150 | |
13.02.1989 | 747547/18/01 | 30 | |
22.11.1989 | 949414/18/145 | 20 | |
26.11.1989 | 949243/18/144 | 20 | |
Joydebpur Br. Gazipur. | 12.02.1998 | 430501/27/02 | 100 |
25.05.1993 | 566919/22/29 | 2000 | |
18.08.1996 | 352835/25/36 | 600 | |
01.11.1999 | 2221114/28/01 | 31 | |
18.05.1996 | 394690/25/01 | 35 | |
06.06.1995 | 793385/24/01 | 35 | |
06.06.1995 | 793386/24/02 | 35 | |
24.08.1995 | 806533/24/01 | 35 | |
Kustia Br. Kustia. | 02.04.1995 | 138564/24/41 | 650 |
22.10.1995 | 139948/24/50 | 5 | |
15.07.1998 | 252160/27/29 | 100 | |
15.07.1998 | 252161/27/30 | 200 | |
15.07.1998 | 252162/37/31 | 100 | |
16.07.1998 | 252171/27/32 | 100 | |
Pabna Br. Pabna. | 22.03.1999 | 472201/27/01 | 2250 |
22.03.1999 | 472202/27/02 | 500 | |
27.07.1999 | 332478/28/36 | 50 | |
06.07.1998 | 264997/27/26 | 50 | |
12.11.1999 | 331550/27/37 | 15 | |
01.12.1998 | 331605/27/43 | 15 | |
22.04.1999 | 335327/28/01 | 50 | |
18.10.2000 | 463457/29/13 | 50 | |
Name of Branch | Date of Issue | Demand Draft No. | Outstanding Balance |
TCB Bhaban Br. Dhaka | 0205.1999 | 496706/52 | 50 |
28.04.1999 | 597108/51 | 30 | |
19.12.1996 | 003783/3 | 150 | |
01.02.1997 | 061831/4 | 25000 | |
15.11.1998 | 375045/32 | 1200 | |
16.11.1998 | 375055/33 | 1200 | |
21.05.1995 | 427361/2 | 150 | |
06.12.1998 | 420987/39 | 150 |
Recommendation:
We recommend the branch to transfer the outstanding balance of Demand Draft amount to Bangladesh Bank as per rule.