Overview of Jamuna Bank Limited

Background

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its head office at PrintersBuilding (2^nd floor and 8^th floor), 5, Rajuk Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank started its operation with an authorized capital of  Tk.1600.00 million and paid up capital of Tk.390.00 million, as of December 2006 Paid up capital of the Bank raised to Tk.1072.5 million and number of branches raised to 29 (Twenty nine).

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

To provide clientele services in respect of International Trade it has established wide correspondent banking relationship with local and foreign banks covering major trade and financial centres at home and abroad.

 Corporate Profile of Jamuna Bank

Registered Office:

Chini Shilpa Bhaban

3, Dilkusha C/A, Dhaka-1000.

Company Registration Number:

C-42780 (2139)/2001

External Audior(s)

Howladar Yunus & Co

Chartered Accountants

67, Dilkusha C/A (2^nd Floor), Dhaka-1000

Legal Advisor

Mr. Habibul Islam Bhuiyan

Senior Advocate

Bhuiyan Islam & Zaidi

Advocates and Barristers

H# 29, Rd# 9/A, Dhanmondi R/A, Dhaka

Number of Branches & SME/ Agri Branches / Centers

Total Branches: 52

SME/ Agri Branches: 3

SME/ AgriCenters: 1

Allied Concern

Jamuna Bank Foundation

HadiMansion (4^th Floor), 2, Dilkusha C/A, Dhaka

Subsidiary Company

Jamuna Bank Capital Management Ltd (Proposed)

Chini shilpa Bhaban

3, Dilkusha C/A, Dhaka-1000

Management Structure of JBL:

Organization Chart of Jamuna Bank Limited

 Branch Information

Branch: 52 & SME / Agri Branch : 4

Number of employees

Number of employees in the main branch of Jamuna bank is 65

 Functions of the Organization

Board Directors

(Chairman, vice Chairman, Members)

Managing Director

Additional Managing Director

Deputy Managing Director

Vision statement of the bank

To be in the forefront of national development by providing all the customers inspirational strength, dependable support and the most comprehensive range of business solutions, through our team of professionals who work passionately to be outstanding in everything we do.

Mision statement of the bank

Jamuna Bank Ltd will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.

Will become most caring, focused for equitable growth based on diversified deployment resources, and nevertheless would remain healthy and gainfully profitable Bank. Jamuna Bank Limited aims to become one of the leading banks in Bangladesh by prudence, flair and quality of operations in their banking sector. The bank has some mission to achieve the organizational goals. Some of them are as follows as:

• Jamuna Bank Limited provide high quality financial services to strengthen the well being and success of individual, industries and business communities.
• Its aim to ensure their competitive advantages by upgrading banking technology and information system.
• JBL intends to play more important role in economic development of Bangladesh and its financial relations with the rest of the world by interlining both modernistic and international operations.
• JBL encourages investors to boost up share market.
• The bank creates wealth for the shareholders.
• The bank believes in strong capitalization.
• It maintains high standard of corporate and business ethics.
• Jamuna Bank Limited extend highest quality of services, which attracts the customers to choose them first.
• The bank creates wealth for the shareholders.
• The bank maintains congenial atmosphere for which people are proud and eager to word with Jamuna Bank Limited.
• Jamuna Bank Limited intend to provide better benefits to their customers and good returns to their shareholders.

• The bank intends to meet the needs of their clients and enhance their profitability by creating corporate culture.

Jamuna Bank Ltd will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.

Product Scheme

The products and services can be classifying in two ways & those arc.

• The deposit products & services
• The lending products   & services

Corporate Banking

The motto of JBL’s Corporate Bankin^g services is to provide personalized solutions to their customers. The Bank distinguishes and identifies corporate customers’ need and designs tailored solutions accordingly.

Jamuna Bank Ltd. Driers a complete range of advisory, financing and operational combining trade, treasury, investment and services to its corporate client groups coin transactional banking activities in one package. Whether it is a project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transition, there Corporate Banking Managers will offer you the accurate  solution, their corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs.

Corporate Banking business envelops a broad range of businesses and industries. Every one can leverage on our know-how in the following sectors mainly:

• Agro processing industry
• Industry (Import Substitute / Export oriented)
• Textile Spinning, Dyeing / Printing
• Export Oriented Garments, Sweater.
• Food & Allied
• Paper & Paper Products
• Engineering, Steel Mills
• Chemical and chemical products etc.
• Telecommunications.
• Information Technology
• Real Estate & Construction
• Wholesale trade
• Transport • Hotels, Restaurants
• Non Bank Financial Institutions
• Loan Syndication
• Protect Finance • Investment Banking
• Lease Finance • Hire Purchase • International Banking
• Export Finance.
•  Import Finance

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 to all a unique mixture of easy and consummate service quality.

They make every endeavor to ensure their clients’ satisfaction. Their cooperative & friendly professionals working in the branches will make your visit and enjoyable experience.

Online Banking

Jamuna Bank Limited has introduced real-time any branch banking onApril 05, 2005. Now, customers can withdraw and deposit money from any of its 30 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj and Munshigonj. Their 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. All the existing customers of Jamuna Bank Limited will enjoythis service by default.

 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 emergences. JBL has introduced Monthly Savings Scheme (MSS) that allows saving on a monthly basis and getting a handsome return upon maturity. If anyone wants to build up a significant savings to carry out you’re cherished Dream, JBL MSS is the right solution.

Monthly Benefit Scheme (MBS)

Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons having ready cash and desiring to have fixed income on monthly basis out of it without taking risk of loss and without enchasing the principal amount. This scheme offers highest return with zero risk. Everyone can plan your monthly expenditure with the certain monthly income under the scheme.

 Double/Triple Growth Deposit Scheme

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

Marriage Deposit Scheme

Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building  of fund as per their capacity to meet the matrimonial expense _of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion.

It can be a great help to the parents if there is any scope of deposit of a modest mount as per their financial capacity, which groves very fast at high rate of interest yielding a sizeable amount on maturity.

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

 Education Savings Scheme

Education is a basic need of every citizen. Every parent wants to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should ^be pre-arrangement of fund to ensure higher educations the children. Otherwise higher education may be hindered due to change of economic condition, income of the parents at the future time when higher education shall be required. Today’s higher education is becoming expired day by day. Parents can get relief and can have peace of mind if they can arrange the necessary fund for higher education of their children. As such, JBI, has introduced ‘Education Savings Scheme’ which offers you an opportunity to build up your cherished fund’ by monthly deposit of small amount it at your affordable capacity or initial lump sum deposit to yield handsome amount on a future date to meet the educational expenses. Under this Scheme you have the different attractive options to avail the future benefit i.e. withdrawal of the total amount accumulated inlump sum or withdrawing monthly benefit to meet educational expense keeping die principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Lakhpati Deposit Scheme

To become a lakhpati is a dream to most of the people of Bangladesh specially to the lower and lower middle class income group. They experiences their expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the above in mind JBL has introduced “Lakhopati Scheme” which has flexibility report of maturity and monthly installment as per affordable capacity.

 Q-Cash Round The Clock Banking

Jamuna Bank Q-Cash ATIM Card enables the costumers to withdraw- cash variety of banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major shopping centers, business and residential areas in Dhaka and chittagong. ATMs in Sylhet, Khulria and other cities will soon start be introduced. The network will expand to cover the whole country within a short span of time.

With customers Jamuna Bank Q-Cash ATM card they can:

• Cash withdrawal Round The Clock from any Q-Cash logo marked ATM booths.
• POS transaction (shopping malls, restaurants, Jewell Aries etc)
• Enjoy overdraft facilities _on the card (if approved)
• Utility Bill Payment facilities
• Cash transaction facilities for selective branches nationwide
• ATM service available in Dhaka and Chittagong Withdrawal allowed from ATM’s of Jamuna Bank Ltd., AB Bank, The City Bank, Janata Bank, IFIC Bank, Jamuna Bank, Pubali Bank, Eastern Bank Ltd. respectively
• And more to come Is Q-Cash

Hire Purchase

Hire purchase is a type of installment Credit wider which the Hire  purchase agrees to take goods on hire at a stated rate which is inclusive of the repayment of principle as well as interest for adjustment of the loan within a specified period.

 Lease Finance

Lease means a contractual relationship between the owner of the asset and its utter- fur a specified period against mutually agreed upon rent. The owner is called the Lessor and the user is called the Lessee.

Lease finance is one of the most convenient source of financing of assets viz machinery, equipment vehicle, etc. The user of the assets i.e. Lessee is benefited through tax advantages, conserving working capital and preserving debt capacity. Moreover, Lease is an off-balance sheet item 1.e lease amount is not shown in the balance sheet of the lessee and does not affect borrowing capacity.

Leasing enables the lessee to avail the services of a plant or equipment without making the investment or incurring debt obligation. The Lessee car, use the asset by paying a series of periodic amounts called “lease payment” or “lease rentals” to the owner of the asset at the predetermined rates and generally in advance. The payments may be made monthly or quarterly.

Jamuna Bark Ltd., the highly capitalized private Commercial 1 Bank in Bangladesh has introduced lease finance to facilitate funding requirement  of valued customers & growth of their business houses.

 Personal loan for women Goal

To make financially sound and solvent surd self dependent the women.

Three categories of women are under this loan-

1. Self Employed Women
2. Working Women
3. House Wife

 Project Finance

Project loan is considered as long term investment of the bank. If the period is helpful to improve the economy and has a wide market then the bank thinks about giving project loan. To give this kind of lona the bank observes the willingness of the customer, his capacity and his ability to run the project. Having obtained this kind of information the bank makes a credit report about the customers loan proposal. Interest rate on loan varies from project Ratio of investment of customer and bank varies from customer to customer and the customer’s relationship with the bank.

Loan syndication

Bank cannot invest more then 15% of its paid up capital on one individual. When the loan amount exceeds 15% of its paid up capital then the bank share the loan with other bank for giving one individual and this is call loan syndicate.

 Consumer Credit

Consumer credit scheme is relatively new field of micro-credit activities. People with limited income can avail of this credit facility to buy any household effects including car, computer and other consumer durable. It is a special credit scheme and the customers allow the loan on soft terms against personal guarantee and deposit of specified percentage of equity. The loan is repayable by monthly installment within a fixed period.

 Import and Export handling and financing

 import Financing

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

Export Financing

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

HomeLoan Scheme

To meet the growing need of housing for middle and lower-middle income people, JBL has introduced Home Loan Scheme. We also support the Bangladesh Bank’s Home Loan Refinance Scheme. The Scheme will also boost up the growth of housing sector. Such loan shall be available for purchase or construction of new apartments for self-residing purpose.

Overseas Employment Loan Scheme

Overseas Employment Loan Scheme is designed to facilitate the Bangladeshi youths seeking employment abroad but unable to meet the expenses to reach the workplace from their own sources. The ultimate objective of the scheme is to promote skilled -skilled manpower to different countries across the world as well as to provide support to Government Policy considering priority of this sector. By availing loan under this scheme, the active youths of middle and lower middle class can get overseas employment by avoiding borrowing from the illustrious class or village ‘mohajon’ at a very high cost or selling their paternal properties. The scheme will also help fetching foreign currency

for the country as well as fulfill the Bank’s commitment to encourage Micro-lending for poverty alleviation, improve the quality of life and thereby contribute to socio economic development of the country.

 Principal activities of Jamuna bank Ltd.

The principal activities of the bank are to provide all kind of commercial bank activities encompass a wide range of services including excepting deposits, making loans, discounting bills, conducting money transfer and foreign exchange transactions and performing other related services such as safe keeping, collections, issuing guarantees, acceptances and letters of credit to its customers through its branches in Bangladesh.

 GENERAL BANKING

THE BANKER – CUSTOMER RELATIONSHIP

The Banker – Customer relationship is essentially a debtor-creditor contractual relationship. This relationship may be divided into two categories,

1. Legal relationship
2. Behavioral relationship

After the contractual relationship is established between the banker and customer, they have to avoid by some implied conditions of the contract as well as practices of the bank.

Some of the conditions and practices are as follows:

1. Customer is to use chequebooks while demanding payment from his account.
2. Customer should keep chequebooks in his safe custody.
3. Customer must inform the bank on time for any loss of cheque leaf or chequebooks.
4. Customer while depositing money or presenting cheque, they must do that during business hour of the bank.
5. Banker also should give necessary banking advice and help the customer in various banking activities.

 SWOT Analysis of JBL

In the competitive area of marketing are SWOT analysis is based on product, price, place and promotion of a financial institution like private Bank. By doing the SWOT analysis it is possible to find out the strengths, Weaknesses, opportunities, and threats of the JBL. From the SWOT analysis we can figure out on going scenario of the Bank.

SWOT Analysis

SWOT analysis two factors act as prime movers

  Internal factors which are prevailing inside the concern which include Strength and Weakness.

  On the other hand another factor is external factors which act as opportunity and threat.

Strength:

1. The bank provides quality service to the clients compared to it other contemporary competitors.
2. Experienced bankers and corporate personnel have formed the management.
3. The bank recently introduce on line banking which enable it to automate all of its operations. At present, several banking functions are performed by computers. The bank is also a member of SWIFT (Society for Worldwide Inter bank Financial Telecommunication) alliance Access which enables the bank to exchange critical financial messages swiftly and cost effective.

Weaknesses:

1. Delegation of authority is centralized which makes the employee to realize less responsibility. Thus, the employee morale is deteriorated.
2. The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients are lost and the bank becomes unable to meet targets.
3. No substantive use of Annual Confidential Report (performance evaluation form of the employee) to reward or to punish the employee. Hence the employee becomes ineffective.
4. The bank lacks aggressive advertising and promotional activities to get a broad geographical coverage.
5. Computer facility for all the officers is not available. Moreover, all the officers have no computer knowledge.
6. The bank has no any research and development division.

Opportunities:

1. The bank can introduce more innovative and modern products and services for then customers.
2. It can diversity its portfolio by taking new sector.
3. Many branches can be opened to reach the bank’s services to the remote areas.
4. It can recruit more efficient and experienced persons to give fast and efficient service to the customers

Threats:

1. The common attitude of Bangladeshi clients is default.
2. Multinational as well as the fast growing local banks with modern products and services are capturing huge market within short period a resulting to switch over the existing customers of the bank.

3. Bangladesh Bank Sometimes requires Private Commercial Banks to be abides by such rules and regulations which are not suitable foe every commercial Bank

 Recommendations

 In view of the facts, the following recommendations are made to the respective concerned for the consideration and implementation.

► The bank should have standardized system of measuring customer satisfaction.

► Need for integrity of the officials within reasonable limits.

► The officials should have a through knowledge of the product.

► The officials should be trained up for their efficiency.

► Reasonable interest rate for all kinds of loan.

► Increasing number of staffs and cash terminals.

► Officials should be more cooperative with the clients.

► Officials should be trained up for self-management.

► Customized new financial product development.

► Officials should be faster during transaction.

► Bank can accept new ideas from the customers for regarding improvement the quality of their service.

►They need to maintain an upgraded guideline for the employees to avoid any kind of confusion.

►They should enhance their savings facilities by introducing many other saving schemes, because customers really look for various savings programs.

►Special increment should be given to middle and junior level managers and executives also to increase their motivation level.

Conclusion

From the beginning of greater change in the world economic structure, banking activities has becoming an important thing. Now a day the idea of banking is also developed and a huge number of private commercial banks are just on waiting for business. So it is  a matter of think that how to establish an idea with different techniques, In Bangladesh, Commercial banks are playing vital role in the development of our economy and financial system. Standard Charted Bank Limited has a strong position in the today’s competitive market. The JBL, Malibagh Branch, Dhaka also contributing a better proportion of profit in JBL’s total earning. Total analysis of the bank has the greater opportunity to do better in the future.

Day by day JBL’s area of service is increased all over the country through setting up new branches at new places. The reliability of the customer on JBL‘s increasing day by day for its better services. But they may introduce online and ATM services comparing with other commercial bank to improve their services and to make efficient and easy customer services. They also may follow the given recommendations in order to improve day by day. Jamuna Bank Limited may contribute a vital role in the socio-economic prospective and in the development of our economy.

The JBL has been trying to operate its business successfully in Bangladesh since 1999. JBL has already developed an image of goodwill among its clientele by offering its excellent services. This success has resulted from dedication, commitment and dynamic

Leadership of its management over the periods. During the short span of time of its operation, the bank bas successfully grabbed a position as a progressive and dynamic financial institution in the country. If the bank goes this way. It is expected that in the near future JBL may become one of the top performers in the banking sector.

Here I observed its deposit figure is strong. The bank should take necessary action for maintaining .JBL has been able to maintain its recovery position in sector wise credit financing is up to the satisfactory level. At last it should give more emphasis in this sector to acquire more profit.

Bibliography

       1.Annual Report of Jamuna Bank Limited, 2005, 2006,2007

2.  Chowdhury, L.R; A Textbook on Foreign Exchange, Fair Corporation,139, Azimpur, Dhaka, 1205

3.   Foreign Exchange Manual, Jamuna Bank Limited., 1^st November,2009

4.   Collyer Gary, ICC Uniform Customs And Practice For Documentary Credits ,3rdEdition, International Chamber Of Commerce, ICC Publication No.600

5.  Bangladesh Bank Foreign Exchange Guidelines, Volume-1

6. www.jamunabankbd.com