The Overview Oriental Bank Limited

General objective of this report is to analysis the Overview Oriental Bank Limited. All in all from the above discussion we find out that the condition of the Oriental Bank limited is not good. Already they provide various types of services to the customer. But don’t give the services which is related to the computer or online service. If the bank provide all the above services which I discuss already then this should be better for the Bank.

INTRODUCTION:

The Bank has been incorporated on April, 1987 as a public limited company under the Companies Act, 1913 to undertake and carry out all kinds of banking, financial and business activities, transactions and operations in strict compliance with the principles of Islamic Law (Shariah)  relating to  business  activities  in  particular  avoiding  usury  in credit and sales transactions  and  any practice which amounts to usury.  Certificate for commencement of business has been issued to the bank on April, 30, 1987.

The Bank has been authorized by the Bangladesh Bank to carry on the banking business in Bangladesh with effect from May 4, 1987. However, actual banking operations commenced on May 20, 1987.

The Oriental bank limited starts their business as an Al- Baraka Bank limited. And they operate till the year 2002. In the December 2002 the ownership of the is change. And at the same time the name of the bank is also change. From that time the name of the bank is The Oriental Bank Limited (TOBL).and commercially the bank start there operate from 13^th April 2003. Already the oriental bank limited has 31 branches in 12 different districts in Bangladesh.

Nature of Business:

All kinds of commercial banking services are provided by the bank to the customers observing the provisions of the Bank Company Act 1991, Bangladesh Bank’s directives and the principles of Islamic Shariah.

Objectives and Goals of Oriental Bank Limited

Objectives and Goals to established enriched and qualitative Islamic Banking in the country by best use of information technology with the commitments of height degree of accountability and transparency with all trust of Allah through best client services based on Islamic Shariah, continuous growth as well as contribution to national economy.

Mission:

To establish Islamic banking by translating the Islamic economy principles into practice, blending the progressive Islamic through of banking and latest financial services technology with commitment for height degree of accountability and transparency with all trust in Allah.

Vision:

To be the leading provider of Shariah based financial services in accordance with the legislations of Allah.

Goal:

To develop and consolidate a strong client base and ensure all kind of modern banking facilities by expanding business and services periphery to fulfill the expectation of the shareholders as well as customer strictly based on Islamic Shariah.

To equip and prepare the bank with modern and up to date progressive Islamic banking system, to achieve target to become “The number one Bank” of the country in respect of profitability and service.

SIGNIFICANT ACCOUNTING POLICES BASIS OF ACCOUNTING:

The accompanying financial statements, comprising Balance Sheet, Profit and Loss Account and Notes thereto have been prepared according to Banking Companies Act, 1991 and  Bangladesh  Bank circulars  applicable to  accounts,  on  a going concern basis, under historical cost convention and are based on generally accepted accounting principles.

Consolidation:

A separate set of records for consolidating the Statement of Affairs and Income and Expenditure Statements of the branches are maintained at the Head Office of the bank in Dhaka from which these financial statements are drawn up. Branch managers of respective bank branches have certified the statement of affairs for the year ended December 31, 2001.

Balance with other banks and exchange gains or losses:

Balances with foreign banks at year-end are translated at the average of telegraphic transfer of buying and selling rates. Excess/shortage of translated figures over book figures at year-end is transferred to Profit and Loss Account.

Investments

Investment are stated at amount as reduced by balance of Profit suspense account and  provision  for  bad  and  doubtful  debts; Profit  is  not  charged  on bad and doubtful investments from the date of filing money suits against the borrowers; Income which were charged on Investment classified by Bangladesh Bank Inspection Team  and  by  the  Bank management  as  sub-standard, doubtful and bad were kept in profit suspense account as per Bangladesh Bank  BCD  Circulars  and  such  income is not accounted for as profit until realized from borrowers.

Competitors or Rivals:

We know that the Oriental bank limited is one of the largest and well known banks in Bangladesh. They have total 35 branches in different places of the country. In all the places or country they don’t open their branch. They open their branch in that where lots of opportunity of to run the business and to make a profit. In different places they have different types of competitor. All the places they are not in the leading position but they work well in all the places. But when we see Bangladesh then find out who is their competitor and find out that they treated the entire bank as a competitor. And it is good sign for them. They take the entire bank seriously and as a competitor. In Bangladesh they work very well. Here in Bangladesh all the multinational bank are not there competitors. The local commercial banks are there big competitor in every single position. We know that Oriental Bank is a progressive Islamic bank. So they are tried to serve to customer which is base on Sariat. So some time all types of Islamic banks are their Competitor.

Target Group or Customer:

In every company and bank have some target group. Because without the target group or customer no one can start their business. Every bank also has some target group or focus group. Then we see the function and branch of the Oriental Bank limited bank then find out that their target groups are the religion person of the society. Because we know that Oriental bank is progressive Islamic bank in Bangladesh When we see the different types of services of the bank’s and the interest rate of the Oriental bank and the branches of the Oriental bank then find out that their target level are also the middle class and lower class of the society. And I belief it is one of the great advantage of them. Because Bangladesh is a poor country. More then 75% of total people in Bangladesh are poor. But some time they also offer some services which attract the upper class of the society.

The Strength of Oriental Bank Limited:

The Oriental Bank limited is operating his business in last 19 years in Bangladesh. Till June 2002 it is known as an Al- Baraka Bank. And in 2002 the ownership of the bank is change. After that this bank is known as an Oriental bank. We already know that it’s one the biggest local commercial bank in Bangladesh. They already opened 35 branches in different places of the country. The Oriental bank limited has some strength through which they can operate their business and they attract the entire customer. The strength of Oriental bank is as follows:

• In the banking industry they are one of the biggest local commercial bank in the Bangladesh.
• Oriental Bank limited promotes different social-cultural and sports activities.
• The oriental banks objective is not only to make a profit but also simultaneously contribute towards social and human development through various altruistic activities.
• The Oriental bank provides the height number of loans to their customer.
• The oriental bank support humanitarian and philanthropic activities and causes and spends a substantial amount from its income for these purposes.
• Because of the oriental bank is one of the biggest commercial bank in Bangladesh so any person can deliver his money from any places of the world and through any branches. And here the main benefit is that the bank takes very few amount of money as a commission.
• The oriental bank limited now also make a movies and it is benefited the society.
• HSBC bank gives or donates a large amount of money when any natural disaster will come.
• Another strength of the oriental bank is their target group. All the time the oriental bank focuses into the religion people or society. And the middle class and the poor class is their target group.
• Another strength of the oriental is their interest rate. They provide a huge amount of interest rate against the short term deposit. Here the rate is more then 10%.
• Against the savings account the oriental bank limited gives 7.5% of interest rate. Now it is height in Bangladesh.
• The bank also gives different types of scheme. They offer marriage scheme, hajj scheme, higher education scheme, 5 years scheme, 10 years scheme, monthly bases scheme, housing Savings Scheme, privileged Citizen Scheme and so on.

Weakness of the Oriental bank Limited: 

Every bank and company has some weakness. Because no business in this world is 100% perfect. The oriental bank is not out of that. They also have some weakness. And the weaknesses are as follows:

• We enter in the 21^st So here all the bank operates their business through to the online banking. But still the oriental bank doesn’t introduce the online banking system.
• The oriental bank has 31 branches in different places of the country. But in Dhaka city they don’t have the enough number of branches.
• The people of Dhaka city is very busy all the day. Any time and any places the needs money. So here the 24 hours banking is very important. Already the HSBC Bank and the standard Chartered bank provide this type of service. But the oriental bank still doesn’t provide this type of services.
• The oriental bank doesn’t provide the ATM card, credit card and the debit card. But it is very important for any bank to provide this type of services. So here any one go to any booth and cash their money.
• In Bangladesh Friday and Saturday is a holiday. But in the foreign country (like USA, Australia, all the European country and also the Middle easy) Sunday is a holiday. So it is create some problem to the local and the foreign investor or the business man. So here in Bangladesh some bank like Dhaka bank and the prime bank open their office in Saturday. So here the oriental bank lost some clients who are business man. And it is great loss for the bank.
• Another one of the greatest weakness of the Oriental bank limited is that they don’t give any types of advertisement in the electronic media and the mass media. But through these two media any bank can attract a huge number of customers.

Accounting Opening

In Bangladesh here are lots of bank operate there business in every day and continuously. We already know that 53 banks are existed in Bangladesh. So competitions are too much. All the bank tries to provide the best service to his customer or clients. The Oriental bank is not out of that. All the time they are trying to provide the best services to his customer. Some time they are introduce some new product or services and some time the authority of the bank just increase the rate of interest. The bank provides the services like savings account and current account. In the savings account there is no another part. But in the current account here are around five parts. Savings accounts are more attract to the individual and the current account is more attract to the partnership and the limited account. The bank also provides the services like scheme account and STD account. The scheme account of Oriental Bank is very popular. In the scheme account there is a various types of part. Any person or the client came here and to select any scheme as they like.

• Savings Account
• Current Account
• STD Account
• Scheme Account

Savings Account:

In the oriental bank limited any one can open a savings account. But most of the time the individual open this type of account. Because here they will get 7.5% interest rate on their current deposit. And it is enough for any person. And they will withdraw the money two times a week. We see that any types don’t open any types of savings account.

1. Introducer
2. Photocopy of Passport/ ID Card/ Driving License or any other identity regarding his or her Nationality
3. 2 Copies passport size Photo graph of account holder should be attested by Introducer.
4. One copy Passport size photograph of nominee attested by Account holder.

Current Account:

Current account is one of the major functions of Oriental Bank limited. Here I found out that most of the company opens this type of account. Because they deposit their money in this account and withdraw the money at any time. And it is depends upon the condition of the business. In the current account there is no interest rate. And this is the main difference between the Current account and the savings account. The current account is divided into many parts and it is as follows:

1. Individual or Joint Account
2. Partnership Account
3. Proprietorship Account
4. Limited Company Account
5. Club or Society Account

Individual or Joint Account:

The first part of the current account is the individual or joint account. But here in this account the total number of customer is very low. Because most of the individual customer prefer the savings account then the current account. And here is no interest rate.

a) Introducer

b) Photocopy of Passport/ ID card/ Driving License or any other identity regarding his or her Nationality

c) 2 Copies passport size Photo graph of account holder should be attested by

One copy Passport size photograph of nominee attested by Account holder.

Partnership Account:

Other type of current accounts is Partnership account. All the partnership company can open this type of account and it is good for them. Here the introducer is very important. Introducer means someone who has account in this branch and very well known to the new account holder. Or we can also say that introducer gives a guarantee to the new account holder.

1. Partnership deed
2. Photocopy of Passport
3. Introducer
4. Nominee
5. Resolution of Account operation

Proprietorship Account:

Any types of single or independent business are known as a Proprietorship. And this type of business can open their account into the oriental bank limited. But the business must be approved by the government.

1. Company Sill
2. Trade license and it must be a valid
3. TIN Certificate and it also must be a valid
4. Nominee
5. VAT Certificate

Limited Company Account:

All the limited company opens their account in this account. Limited companies have the share into the share market. And the limited company must get permeation from the Bangladesh government. They must have the memorandum. Here include all the members of board of director, shareholder’s name, address, phone number every thing.

1. Certificate of Incorporation
2. Memorandum
3. Trade license and it must be a valid
4. TIN Certificate and it also must be a valid
5. Resolution of Account operation
6. Company Sill
7. VAT Certificate

Club or Society Account:

Any types of club and society can open a current account in this section. They must be approved by the Welfare Department and also by the Government.

1. Approval of Social Welfare Department
2. Trade license and it must be a valid
3. TIN Certificate and it also must be a valid
4. Company Sill
5. Resolution of Account operation

Scheme Account:

Scheme account is one of the important services for the Oriental Bank. Any person can open this type of account.  In the Scheme account any one can deposit there money into his or her account. Here the amount of money is fixed. And they deposit their money one time in every month. And it is with in the first 10 days of every month. Any one can deposit their money at any range like Tk. 250, Tk. 500, Tk. 1000, and Tk. 2000. And the period may be 5 years or 10 years. It is depends upon the perception of any person or individual. There are various types of Scheme of the Oriental Bank Limited and it is as follows:

• Monthly Profit Scheme
• Marriage Savings Scheme
• Higher Education Savings Scheme
• Savings Scheme for Children
• Future Deposit Savings Scheme for 5 years and 10 years
• Hajj Deposit Savings Scheme
• Housing Savings Scheme
• Privileged Citizen Scheme
• 6 Year’s Double Growth Scheme

Monthly Profit Scheme:

Monthly profit scheme is one of the best schemes in this sector. Lots of customers are more interested in this type of scheme more then any other. Because in this category there is no specific reason for open this type of scheme. Here any one can deposit his or her money at any purpose. It is off course on the monthly bases. And here the interest rate is similar to the other scheme.

Marriage Savings Scheme:

Marriage scheme is another part of the scheme. Here in this scheme any one can deposit his or her money. But here is one fixed purpose. In this marriage scheme any one can deposit money and here the purpose is the marriage. Here also a fixed amount of money which the person pays every month to the bank. In this scheme here is also a fixed amount of interest rate.

Higher Education Savings Scheme:

Higher education savings scheme is one of the most popular schemes in the Oriental Bank Limited. All the person opens this type of scheme only for the education purpose. This type of account opens the parents for his and her children. Here the time duration is maximum 10 years. This type of account holder in Oriental Bank is height.

Savings Scheme for Children:

Savings scheme is one of the important scheme accounts of the Oriental Bank Limited. Actually the parents are open this type of account or scheme. This scheme is quite similar to the Higher education savings scheme. But here in this scheme there is no specific purpose. This scheme is only for the children. All the people in this scheme also deposit their money in every month and the amount is fixed for all the 10 years.

Future Deposit Savings Scheme for 5 years and 10 years:

This scheme is similar to other types of scheme. Here in this scheme there is no fixed reason to open this. It is just for the future plan. Any one can open this type of scheme. The duration of this account is 5 years and 10 years. And all the rules and the regulation are same to the other types of scheme. Here the purpose is the same but the causes are varying person to person.

Hajj Deposit Savings Scheme:

This type of scheme is really very good working in the Oriental Bank Limited. This scheme is more popular to the religion person or the person who want to Hajj one time in his life. Now a time many people are interested to open this Hajj Scheme. The time duration is 5 years and 10 years. But most of the time the clients are use the 10 years time duration.

Housing Savings Scheme:

Housing savings scheme is one of other types of the scheme deposit. Here all the people deposit his or her money for the reason to make a house or purchase a flat. The time period of this scheme is also 5 or 10 year. The popularity of this scheme is not more then the Previous all the scheme. And for that reason the total number of customer in this scheme is very few.

Privileged Citizen Scheme:

This scheme is very new in the Oriental Bank limited. Last year the bank introduces this scheme. For that reason all the people have no idea about this Privileged Citizen scheme.

6 Year’s Double Growth Scheme:

This scheme is the last types of the entire scheme in Oriental Bank Limited. We already know that here the time period is 6 year’s. And at the end of the time period or duration the total amount of deposit will be double. And this is the main advantages then other all the scheme.

Trans of Current Account opening in Oriental Bank Limited:

Current account is one of the major services of any bank. Oriental bank is not out of that. In every month lots of people open a new current account. Few months age the more number of people open this type of account. But now the number is reducing day by day. Because now the government gives some rules and regulation or restriction to all the bank. So now the bank takes lots of documents as a guarantee. Here lots of people think that this is excess. So this type of people doesn’t the account. The main disadvantages of the current account are there is no interest rate. Here I show how many people a current account in last 5 months and it is as follows:

In the above chart we see that in the month November 2005 the total number of current account is open only 6. But in December the total number of account open is 7. And it is more then the previous month. But in the month January and February the total number of current account opening is only 5. But in March the number of current account is open only 2. Here we see that in every month the total number of current account opening is decreasing. Here one of the main reasons is that most of the individual are more interested to open the Mudaraba or savings account. Because in this account they will get some interest rate. Most of the cases only the business firm or proprietorship open this type of account. And for that reason the total number of current account open is very few in every month.

Trans of Mudaraba Account opening in Oriental Bank Limited:

Like a current account mudaraba account is one of the major services of the Oriental bank limited. Actually the individuals are more prefer to open the Mudaraba Account. Because in this account any individual or person can get an interest rate. But in the current account they don’t get any types of interest rate. In the Mudaraba account the interest rate is 7.5%. It is the height interest rate against the savings account in Bangladesh. So here we already realized that in the Mudaraba account the number of individual is more then the current account. The other name of the Mudaraba account is Savings account. Here I show how many people a Mudaraba account in last 5 months and it is as follows:

When we see the mudaraba account opening we find out that in the month November the total number of account open is 18. And it is good number for any bank. In the month December the total number of account open is 17. It is lower then the month November but still it is good. In January suddenly the total number of Mudaraba account is increase and it is 26. And it is higher in the last 5 months. In February the total number of Mudaraba account is open 26. And it is also very good as like a previous month. But in the month March the total number of Mudaraba account open only 12. When we compare between the current account and Mudaraba account then find out that the Mudaraba account is more popular then the current account. Because in the Mudaraba account any client get 7.5% as an interest rate. In the Oriental Bank the customer are interested to open the Mudaraba account. In the last five months total 103 Mudaraba account is open. And this number is good for any Bank.

Trans of Scheme Account opening in Oriental Bank Limited

Scheme account is one of the very important accounts of the oriental bank. Here in the scheme account the customer or the clients deposit his or her money in every month. Here they have just one scheme account. All the month they deposit the same amount of money. In this account the time duration is fixed and it is 5 years and 10 years. Here the deposited amount of money is also fixed and it is Tk. 250, Tk. 500, Tk. 1000, and Tk. 2000. In the oriental bank have 9 types of different scheme. Here I show how many people a Mudaraba account in last 5 months and it is as follows:

In the above chart we see that in the January the total amount of scheme account is open 12. But in February the total number of scheme account is reduce. And here it is just 7. In the month March here the number is only 5. So here we find out that in every month the amount of scheme open is reduce. And it is some time creates a very big problem to the bank. Here the main problem is that now the bank have only 10 years scheme and deposited amount is TK. 1,000. So here all people have no ability to open this type of scheme account.

Monthly Term Deposit Receipts (MTDR)

A monthly term deposit receipt is one of the important services of the Oriental Bank Limited. It’s a one type of fixed deposit. And it’s a short term deposit. Here the customers deposit their money for the short term it means not more then the 1 (one) year. The clients or customer wants to deposit their idol money. And this type of deposit helps to them. Here the customers deposit their money for any fixed time. This service is the most popular services of the Oriental bank. Lots of customer are open this MTDR. And for the causes of popularity the interest rate of the MTDR is also increase. In this deposit here are various types of time duration. And the customers choose the time duration as they like. The time period is for 1 month, 2 months, 3 months, 6 months and the 12 months. Most of the clients deposit their money for the 1 month and 3 months. It’s a renewal. After the end of the period of MTDR the term is start again. If the term of the MTDR is for 1 month then after the end of the period the person get the interest rate. And if the person not withdraws the money then all the money adds to the principle amount. And next month the interest rate is charge on the previous total amount of money. The interest rate of the MTDR deposit is as follows:

In the above chart we see that in every time period the interest rate is increase. In the 1 month time period the interest rate is .75%. In the 2 months MTDS interest rate increase 1% and 3 months time period the interest rate is also 1.25%. But in 6 months and 12 months time period the interest rate is increase more then the previous and it is 10.5%.

Monthly Term Deposit Scheme (MTDS)

The MTDS or monthly term deposit scheme is one of the important services of the Oriental Bank limited. It is similar to the MTDR deposit. But MTDR is for the short term and MTDS is for the long term. This MTDS is mainly for the 3 years. The time period is reducing. Previous the time period was for 5 years. Here in this MTDS deposit the interest rate is varies person to person and time to time. Some time the rate is 13.2%, some time 13.34% and some it is only 10.5%.Here in this MTDS deposit the interest rate is more then the interest rate of MTDR. But if the client are closed his deposit before the maturity then he don’t get the full amount of interest rate which the bank offer. In this case the customer gets the savings account interest rate and it is 7.5%. In the MTDS deposit here the interest paid in every month. And the interest amount of money transferred to his or her account. And they withdraw the money any time from their account. The calculation of the MTDS deposit is as follows:

But in the above calculation there is no Excise duty. In every year the bank deduct some amount of money for this excise duty. And it is in the last month in every year. But the amount of excise duty is not same for all the amount of money. The rates of excise duty are as follows:

• For TK. 10,000 to Tk. 1, 00,000 Excise Duty- TK. 120
• For TK. 1, 00,001 to Tk. 10, 00,000 Excise Duty- TK. 250
• For TK. 10, 00,001 to Tk. 1, 00, 00,000 Excise Duty- TK. 550
• For TK. 1,00,00,001 to Tk. 5, 00, 00,000 Excise Duty- TK. 2,500
•  For Tk. 5, 00, 00,001 or more Excise Duty- TK. 5,500

Trans of MTDR opening in Oriental Bank Limited:

The monthly term deposit receipt is the most important services of the Oriental Bank Limited. And it is also the most popular in all the services of the bank. For that reason the height number of customer have in this service. In the MTDR deposit the customer deposit their money for the short term. Here the time period is not more then one year. The time period may be 1 month, 2 months, 3 months, 6 months and 12 months. The clients deposit their idol money for the short term period. The MTDR is a renewal. It means after the end of the term the MTDR is renewal again and here the time period is same as before. Most of the cases the individual open this type of short term deposit. But few cases the private business also open this type of deposit. In the below I show how many MTDR is open in the last 5 month and it is as follows:

In the above chart we find out how many Monthly Term Deposit Receipt or (MTDR) are open. In the November total 41 MTDR are open. But in the December the total number of MTDR are open only 26. This number is lower is the last 5 month. In January it makes a history and it is height in the last 5 months. Total number is 114. In the month February the total number of MTDR are open 54. It is lower then the last year but still the number is not bad. The month March the total number of MTDR open are not bad. The total number is 75. And it is second height in the last 5 month.

Trans of MTDS opening in Oriental Bank Limited:

Monthly Term Deposit Scheme is a long term deposit. Here the clients deposit their money for the long term deposit. The time period is for the 3 years. But few times age the time period is 5 years. Bun now it is reducing. Here no another option to choose. In the MTDS deposit the total number of customer is very few. Here the main problem is the time duration. The people not like to fixed deposit their money for the long term. So here the total number of clients is only 567 in total. But in this MTDS deposit the interest rate is very high. And if the clients closed his deposit before the period is ended the he will not get actual interest rate. He will get the savings account interest rate and it is 7.5%. In below I show all the last 5 months how many MTDS are open:

In the above chart we see that the total number of MTDS account opening is very few in every month. In November the total number is only 6. And this is the lowest in the last 5 months. In the month December and the January the total number of MTDS are open only 8. But this two is better then the month of November. In the month February the total number of MTDS is open 11. Here we see that in every month the MTDS deposit open is increasing. In the March the increasing is continuing. In this month the total number is 18. And it is the height in the last 5 month. From the above chart we find out that in every month the number of MTDS deposit is increasing. So we say that the popularity of Monthly Term Deposit Scheme (MTDS) is increasing in every month. And it is good side for the bank.

Remittance:

Remittance is one of the important services of the Oriental Bank Limited. Generally all banks provide this service. Lots of people live in the different types of foreign country. Some people are goes for the job purpose, some one goes for the education purpose and some one goes for the permanent purpose. Here all the people try to send some amount of money of their daily income. So in this case the Oriental Bank helps them. Through to different types of organization all people send their money. And in Bangladesh the Oriental bank receive the money and give it to the clients. At first all the money came into the head office and then the head office send it all the branches of them. Here the people get the money into two ways. One is to through to the Id number and another is through to the account number. In the case of account the beneficiary must have an account in to that branch. And here all the money automatically transfers into the account.

But in case of ID number there is some problem. When the senders send the money at that the foreign organizations give him an ID number. Here only the sender knows about the ID number. And then he informs the secret ID number to the beneficiary. And then the beneficiary call to the bank and find out the bank receive the amount or not. If the inform the person that yes we already get your money then person came to the in that day or the next day. He must come with his or her passport. If the person doesn’t have the passport then he must bring photocopy of telephone bill, electric bill or any other documents which can help to find out his identification. The necessary documents needed to withdraw the money of remittance are as follows:

• Passport and the photocopy of the passport and any documents which can help to find out his identification.
• He or she must know the secret ID number.

Pay Order:

Pay order is one of another important service of the Oriental Bank Limited. Now in the business every one uses the pay order. Now a day it is very popular. In this cases the person must have an account is the bank. And in that time the bank give him the pay order to the organization. And here the daily transaction is very important. The bank gives the pay order to the company or any person. After that the person give the pay order to the another person. And then the beneficiary show the documents to the bank where they have the account in there own company name. At the time of pay order the bank also charge the commission and the 15% VAT on banking service. In the block of pay order here are two parts. When the beneficiary show it to the another bank then at first the bank send it to the clearing house to the Bangladesh bank. When the clearing house say that every thing is all right then the bank pay the money to the beneficiary. And here they take one part of the block and another part again sends it to the sender bank. Then the bank sure that every thing is all right and the beneficiary get the money.

TT:     

TT means the telegram transfer of money. Here the main condition is that the bank transfers the money in all the branch of the bank. It must be a one branch to another. When one client came into the bank and said that they transfer the money to Mr. A and in Sylhet. And his account number is this. So her in Dhaka the sender give the money to the bank here he also give the commission, commission on telephone bill and 15% VAT on banking service commission. And after receipt all the money the bank inform the branches where the senders want to send the money through to the telephone. And after that the bank sends a confirmation letter to the Sylhet branch. And through to this step the process of Telephone Transfer is closed. And this service is one of the major of the bank.

Performance of the Bank Depends on:

The bank industry gives us a height number of services. And it is more then any other business. And the performance of them depends on many other aspects. When we follow or see the book then find out that in here they published various things which really most of the important things of any bank. So here we discuss all the things ands the bank dewponds upon on that things and it is are as follows:

The bank’s performance depends on the total assets of the bank. And it is the most important side of the bank. The assets is needed because to get the public confidents and also to start the business.

Some time the performance of the bank depends on the total equity. And most of the cases equity comes from the owners of the bank. Without the owners equity the bank can’t start their business. So this equity is very important.

The performance of the bank is also depends upon the total liquidity of the bank. When the liquidity amount of the bank is more then they easily fulfill the demand of the customer. But the more liquidity is not goods for the bank. Because the amount is more then they invest the less amount of money in the investment fields and it is bad for the company.

The performance of the bank is also depends upon the internal control. And we belief that this is one of the most important part of the bank to evaluate performance. Because when the internal control is high then the employees make less fraud. And if the internal control is low then the employees make more frauds and the bank make more losses.

The banks performance also depends upon the risk of the bank. The risk is divided into various parts and it is, are as follows:

1. Liquidity Risk: The danger of having insufficient cash to meet a bank’s obligations when due.
2. Credit Risk: The danger of default by a borrower to whom a bank has extended credit.
3. Market Risk: The danger of changing market values of bank assets, liabilities, and equity that may bring about loss.
4. Interest Rate Risk: The danger that shifting interest rates may adversely affect a bank’s net income, that value of its assets or equity.
5. Earning Risk: The danger that a bank’s rate of return on assets or equity or its net earning may fall.
6. Solvency Risk: The danger that a bank may fail due to negative profitability and erosion of its capital.

Some time the bank’s performance also depends upon the total number of share and the price of the share. When suddenly the price of the share of the bank is increase at that time the value of the bank is also increase. At that time because of the trust many people came into the bank and open the account and also take some loans.

Bank’s performance also depends on the total number of dividend which is announcing the bank’s board of directors at the end of the financial year. When the total number or amount of dividend is more then the other bank then all the people trying to invest money in this bank. And the value of the bank is just increase.

All the points are including here in the case of evaluating the performance of the bank. Actually on more topic or points have except this.

Ratio Analysis

Profitability Ratio

2004

Profitability ratio                                                       Ratio of Oriental Bank                   

Net Interest Margin                                                                (9.12)

Return on Assets                                                                     (1.032)

Return on Equity                                                                    (16.46)

Net non interest margin                                                            (1.20)

Asset Utilization Ratio                                                            .0028

Earning Per Share (EPS)                                                       (481.21)

In the year 2004 we see that condition of all profitability ratios is not good. All ratios are in the negative position. Only the asset utilization is in the positive position. We know that the return on asset and return on equity are the most important ratio of any bank or company. But here in the year 2004 this to ratio is in the negative position. Earning per share is another important ratio of any bank. Through to this ratio we find out what is the condition of the shareholder. They are in the profitable position or not. But in the Earning per share ratio the share holder in the losing sector.

2003

Profitability ratio                                                       Ratio of Oriental Bank                   

Net Interest Margin                                                                (0.017)

Return on Assets                                                                       (1.92)

Return on Equity                                                                     (31.03)

Net non interest margin                                                            (2.03)

Asset Utilization Ratio                                                            (.0041)

Earning Per Share (EPS)                                                        (757.82)

In the year 2003 the position of the bank is similar to the year 2004. Here also all the ratio is in the negative position. In return on asset previous year is better then this year. In case of net interest margin the recent year is better. But the asset utilization ratio this year is in the negative position and it is (.0041). But in the year 2004 the ratio of asset utilization ratio is positive. The condition of the Earning per Share (EPS) is not good. Previous year is better then this year.

2002

Profitability ratio                                                       Ratio of Oriental Bank                   

Net Interest Margin                                                                (0.0222)

Return on Assets                                                                       (3.09)

Return on Equity                                                                     (42.21)

Net non interest margin                                                            (8.62)

Asset Utilization Ratio                                                            (.0134)

Earning Per Share (EPS)                                                        (1843.87)

In the year 2002 we see that here all profitability ratio is in the negative position. And it is continue in last 3 years. From the last 3 years the bank is in a loosing sector. So here naturally all ratios are a negative position. The position of the Net interest Margin is weaker then the last year. And in the case of return on assets and in the return on equity both are weaker then the previous two years. And the case of earning per share here the ratio is double then the last year. So at last we say that the condition of the oriental Bank in 2002 is poor is the last 4 years.

2001

Profitability ratio                                                       Ratio of Oriental Bank                   

Net Interest Margin                                                                (0.0132)

Return on Assets                                                                        .69

Return on Equity                                                                      18.87

Net non interest margin                                                            (6.35)

Asset Utilization Ratio                                                           (.02191)

Earning Per Share (EPS)                                                          380.94

In the year 2001 here the condition of the bank is better in the last 4 years. The condition of the return on assets, return on equity and the most important part the Earning per share is positive. And the most important part is that the bank is gaining profit fast time in this year. But when we see the net non interest margin, net interest margin and asset utilization all this are still in the loosing position.

Comparing Risk Analysis

2004

Risk Analysis                                                       Ratio of Oriental Bank                          

Credit Risk                                                                          0.72

Solvency Risk                                                                   (0.063)

Liquidity Risk                                                                    0.092

Risk analysis is one of the important ratios for any bank. Because through to the risk analysis any bank or company find what is the condition of his organization. In the credit risk we the ratio is .72 and it are not so bad for any organization. And the condition of the solvency risk is better then the credit risk. And the liquidity risk also in good position.

2003

Risk Analysis                                                       Ratio of Oriental Bank                          

Credit Risk                                                                          0.78

Solvency Risk                                                                   (0.062)

Liquidity Risk                                                                    0.084

When we focus the year 2003 then find out that the condition of the Credit risk is quite similar to the previous year. Here the difference is only .06. In the case of solvency risk the year 2003 and 2004 is same. But in case of liquidity risk in 2003 the condition is better then the 2004. So here we say that in the case of risk analysis the bank going good.

2002

Risk Analysis                                                       Ratio of Oriental Bank                          

Credit Risk                                                                          0.74

Solvency Risk                                                                   (0.073)

Liquidity Risk                                                                    0.073

In the year 2002 we see that the condition of the Credit risk, solvency risk and the liquidity risk is same as previous year. Here the credit risk is only .02 increases. In case of solvency risk it is good then the previous year. And the condition of the liquidity risk is better then the year 2004 and 2003. So here we say that the bank stay in the same position in last 3 years.

2001

Risk Analysis                                                       Ratio of Oriental Bank                          

Credit Risk                                                                          0.68

Solvency Risk                                                                   (0.0365)

Liquidity Risk                                                                    0.064

When we see in the year 2001 then we find out that the condition of the Oriental Bank is similar in the last 4 years in the case of risk analysis. The condition of the credit risk is improving in every year. It is same in the case of solvency risk and in the Liquidity risk. And it is good sign for any bank.

Comparing Other Aspects

2004

Profitability ratio                                           Ratio of Oriental Bank                                

Efficiency Ratio                                                            4.64

Employee Productivity Ratio                               (3, 67,889.106)

In the year 2004 the position of operating efficiency ratio is good. The main things are that it is in the positive position. Here the ratio is 4.64 and it is good for any bank. But in the employee productivity ratio the condition of the bank is not good. It is in the negative position

2003

Profitability ratio                                           Ratio of Oriental Bank                                

Efficiency Ratio                                                            (3.69)

Employee Productivity Ratio                                (5, 68,681.159)

But in the year 2003 the condition of the oriental bank not good in the profitability ratio. In the efficiency ratio this year it is in the negative position. The employee productivity ratio is also negative but it is bigger then the previous year.

2002

Profitability ratio                                           Ratio of Oriental Bank                                

Efficiency Ratio                                                          (1.299)

Employee Productivity Ratio                               (7, 41,988.2434)

When we see in the year 2002 then find out that the efficiency ratio is better then the previous year but it is not then the year 2004. And in case of Employee Productivity Ratio it is more decreasing in the year 2002. So the year 2002 is not so good for the Productivity ratio.

2001

Profitability ratio                                           Ratio of Oriental Bank                                

Efficiency Ratio                                                            0.69

Employee Productivity Ratio                                1, 54,976.2053

In the year 2001 we see that the condition of the efficiency ratio and employee productivity ratio is better then the previous year. The efficiency ratio of the bank is .69 and it is better in last 3 years. In the employee productivity ratio the ratio is positive. Here the ratio is 1, 54,976.20 and the ratio is better in the last 4 years.

Recommendation and Conclusion

The Oriental Bank Limiter is one of the oldest private commercial bank in Bangladesh. They start their business in the year 1987 as an Al -Baraka Bank limited. In the name of AL-Baraka Bank limited the bank operate there business till the year 2002. But at that time it is goes to loosing sector. It is very difficult for any company to continue there business in this situation. So at end of the year 2002 the ownership of the bank is change. And from that time the bank is known as an Oriental Bank Limited. Bangladesh bank gives approval to Oriental Bank in April, 2003. And in the same the bank also start there business. We know all the company or bank or any servicing company have some disadvantage and also some advantage. Because we know that in this nothing is perfect with out the all mighty GOD. The Oriental bank is not out of that. They have also some problem or disadvantage. And we also said that which thread is for them. All the things we are talking in the below and give some possible step.

We live in the 21^st century. Now we are familiar with all the modern technology which the other bank or the organizations are provides. Now a day all the banks are provide the online business. It means any people can withdraw or deposit their money from any places in the world. But here all the people one code number and this is work as his identification. The bank like HSBC bank, Standard Chartered Bank, Dhaka Bank and The Southeast Bank are provides this type of services. But still the Oriental bank did not start this type of services. Now a day it is important for them to stay into the market.

Now the field of banking line is very competitive. All the banks are tried to provide the best services. And they inform this service to the customer through to the advertisement. And this is the biggest way to inform all the people. The mass media means TV, radio and the printing media means newspaper, magazine. This is the two way to inform the entire customer. But in both the cases the Oriental Bank is very week. They don’t give any ad into the area. But when we look at the bank like Dhaka Bank, HSBC Bank, BRAC Bank and Standard Chartered Bank then find out how many ad they give in every day in all the newspaper and the magazine. So here all people well known about there services and there product. And for that reason they are in the leading position.

In the whole world all the people are very busy. All the people are try to earn more profit in every single time. So some time in the morning they have no enough time. Here they need money at any time. It may be in evening, night or in mid night. So 24 hours banking is very important for any bank. Here the main advantage is when any one needs money at any time they just go to the booth of the bank and punch the card and take the money. The bank like BRAC Bank, HSBC Bank, Standard Chartered Bank and Southeast Bank provide this type of services. So in this section all the customer open their account in the above branches. But the Oriental Bank did not provide this type of services. So here they are in the weakest position.

Now a day it is very risky for any open to carry some amount of money. It may take any ones life. So now all the people are more like to carry the card. And may be debit card, credit card or the master card. So most of the banks are trying to provide this type of service. And Standard Chartered bank is one of them. They are very popular in this service. But still the Oriental Bank limited doesn’t introduce this type of services. And it is one of the great disadvantages of the bank.

In Bangladesh Friday and Saturday is a holiday. But in the foreign country (like USA, Australia, all the European country and also the Middle easy) Sunday is a holiday. So it is create some problem to the local and the foreign investor or the business man. So here in Bangladesh some bank like Dhaka bank and the prime bank open their office in Saturday. So here the oriental bank lost some clients who are business man. And it is great loss for the bank. And for that reason the Bank authority must look after this side.

We know that now a day every bank tries to make the full control over the entire bank. But all banks don’t do this. For that reason some time the banks provide the various types of services and some time they open there branches into the different places for the reason to attract the customer. In that case when we see all the branches then we find out that the total number of branch of Oriental Bank has 31. The amount is so impressive. But only 12 branches in whole Dhaka city. It is very poor. But when we see the Dhaka bank, Duch Bangla Bank, Prime Bank then we find out most of them in the Dhaka city. And for that reason they are in the better position then the Oriental Bank.

In the modern world the SMS banking is one of the important services. It is latest version of any banking services. Through to the mobile phone any one can get benefited. The bank like BRAC Bank and HSBC Bank provide this type of services. Through to the mobile phone any one give a SMS to the banks own number. And in the same time the bank back another SMS. And through this process any person can get what is the position of his account. But still the Oriental bank limited didn’t provide this service.

All in all from the above discussion we find out that the condition of the Oriental Bank limited is not good. Already they provide various types of services to the customer. But don’t give the services which is related to the computer or online service. If the bank provide all the above services which I discuss already then this should be better for the Bank.