Performance Evaluation of General Banking of Trust Bank

Main purpose of this report is to analysis Performance Evaluation of General Banking of Trust Bank Limited. Other objectives are to apprise the principal activities and evaluate performance of Trust Bank and to know about Loans and Advances. Also discuss on the procedures of giving loan and procedures of earning interest. Finally measure the actual position and identifying problems and recommend suggestions for the successful Leading Operation of Trust Bank Limited.

Objective of the Report:

Every report has an objective. The objective of the internship program is to familiarize students with the real business situation, to compare them with the business theories & at the last stage make a report on assigned task. Objective of this report is given below:

• To complete the partial fulfillment of the requirement of Masers of Business Administration (MBA).
• To know about the basic Banking system.
• To know the general banking activities of trust bank.
• To apprise the principal activities and evaluate performance of The Trust Bank Ltd.
• Provide an idea about the banking sector of Bangladesh.
• The system of their accounts maintaining
• To know about Loans & Advances.
• The procedures of giving loan.
• The procedures of earning interest.
• To know about the FCAD Department of Trust Bank Limited.
• Present an overview of Trust Bank Limited.
• Measure the actual position of Trust Bank Limited.
• Identifying problems and recommend suggestions for the successful Leading Operation of Trust Bank Limited.

Sources of Information:

To do all these things I have to need many kinds of data. I have collected these data from both primary and secondary sources

Primary sources:

Primary sources of the data collections were-

• Direct observations
• Face-to-face conversation with both the clients and the staff
• Obtaining responses from the clients and managers through questionnaire.
• Data regarding the types of product offered to the clients and the description for each of the product were also gathered through interview
• Besides, on-the-job experience has also helped me learn quite a few things about the correspondent Banking Department and the organization as well.

Secondary sources:

Required information or data were collected mainly form the secondary sources. The sources are:

• Brochures
• Difference text books,
• Term papers of TBL Training manuals,
• Transaction in foreign Exchange,
• General Banking Operation manual of the organization helped me to gather data about the organization.
• Data have also been collected by going through different circulars issued by the head office and Bangladesh bank during the tenor of the internship.
• Islamic University of Chittagonj, Dhaka Campus.
• News Paper
• Web sites
• Various files and documents of Trust Bank Ltd

Methodology:

The methodology of the report is to collect data from primary and secondary sources of information .For collecting data we have used the following method:

• Face to face interview.
• Questionnaire survey of Clint of Trust Bank Ltd
• Discussion with the seniors and friends
• Book reference Collect data from Internets and magazines.
• Discussed about the report with Head of the Department.
• Also some other important tools

Background of “Trust Bank Ltd.”:

Trust Bank Ltd is a private commercial, scheduled Bank, which obtain license from Bangladesh bank on July15, 1999. Presently Army Welfare Trust is the major shareholder. The authorized capital pf the bank is Taka two thousand million. Public share are expected to be floated in the near future. The bank was formally inaugurated and listed as a scheduled Bank on November 1999.

The idea of setting up a Bank by Bangladesh Army was first conceived in 1987 an on November 29, 1999 the first branch of the Trust Bank Ltd came into operation. Composition of the Board of TBL consists of Ex-official Directors of in-service senior Army personnel, with the chief of Army Staff as its Chairman and the Adjutant General as its Vice- Chairman.

In 2001, the bank introduced automated branch banking system to increase efficiency and improve customer service. In the year 2005, the bank moved one step further and introduced ATM services for its customers.

Since bank’s business volume increased over the years and the demands of the customers enlarged in manifold, their technology has been upgraded to manage the growth of the bank and meet the demands of our customers.
In January 2007, Trust Bank successfully launched Online Banking Services which facilitate Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to all customers. Customers can now deposit or withdraw money from any Branch of Trust Bank nationwide without needing to open multiple accounts in multiple Branches.

Via Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve 24×7 hours Account information such as account balance checkup through mini-statements and cash withdrawals.

Trust Bank is about to introduce Visa Credit Cards to serve it’s existing and potential valued customers. Credits cards can now be used at shops & restaurants all around Bangladesh and even internationally.

In addition to ensuring quality, customer service related to general banking the bank also deals in Foreign Exchange transactions. In the mean time the bank has expended credit facilities to almost all the sector of the country’s economy. The bank has plans to invest extensively in the country’s industrial and agricultural sectors in the coming days. It has also planned to promote the agro-based industries of the country. The bank has already participated in syndicated loan agreement with other bank to promote textile sectors of the country. Such participation would continue in the future for greater interest of the overall economy. Keeping in mind the Clint’s financial and banking needs the bank is engaged in constantly improving its services to the clients and lunching new and innovative products to provide better service towards fulfillment of growing demands of its customers.

In order to provide up-to-date information on the bank at finger trips to the trade and business communities of the world, their own IT team has developed an E-mail address and a web page for the bank. It can be accessed to under the domain:tbl@globalbd.net and www.trustbankbd.com. Trust Bank is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at Trust Bank, customer is always at the center.

Objectives:

There are some objectives of this bank, which are as follows:

• To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust business in Bangladesh and abroad.
• To form, establish and organize abroad any bank, company, institution, organization, either single or joint collaboration for partnership with any individual, bank, company, institution, organization, or any other government agency for the purpose of carrying of business, financial investment or any other business as provided hereafter.
• To carry on any business relating to wage earners scheme as may be allowed by the Bangladesh Bank from time to time including maintaining of foreign currency accounts.
• To conduct or negotiate all kinds of loan and assistance, private or public, from any source, local and foreign, and to take all such steps as may be required to complete such deals.
• To form, promote, organize, participate and aid in forming, promoting, organizing any bank, company, institution, organization, or any holding company in Bangladesh and abroad for the purpose of undertaking any banking, financial and investment or trust business.
• To purchase, or otherwise acquire, undertake, the whole or any part of or any interest in the business, goodwill, property, contract, agreement, right private assets and liabilities of any other company, bank, corporation, partnership, body person or person carrying on or
• Having ceased to carry on, upon such term and may be deemed expedient.

Missions:

There have some missions of Trust Bank Limited, which are as follows:

• To establish Trust Banking through the introduction of new products and schemes.
• To establish Trust Banking through the introduction of a weal fare oriented banking
  • Achieving sound and profitable growth in Assets and Liabilities.
  • In the field of all economic activities to ensure equity and justice.
  • It’s achieving balance growth and equitable development through diversified investment operations.
  • To build long lasting credible and mutually dependable relationship with Customers.

• Efficiently managing interest and operating costs.
• To encourage women entrepreneur and development.
• Superior customer services.
• To be the preferred employer among Banks in Bangladesh.
• To be the strong organized administration in the country.
• To encourage social economic development and financial services low income community in the rural area.

Visions:

There have some vision of Trust Bank Limited, which are as follows:

• To Establish and maintain the modern banking techniques
• Always try to provides a superior services
• To build a sustainable and respectable financial institutions
• To be a leading commercial bank
• The profit of the bank used for the socio-economic development of the member of the Bangladesh Army thereby the nation as a whole
• To be the strong and efficient organization with highly motivated professionals, working for the people, based upon accountability, transparency and integrity.

Strengths:

• Sponsored by Bangladesh Army, the largest and most organized group in Bangladesh.
• Well-capitalized Bank with potential to increase capital base.
• Homogenous Board of Directors.
• Computerized customer services.
• Customer’s faith as a stable dependable Bank.

Opportunities of TBL:

• Public confidence as a financially stable Bank, backed by the Bangladesh Army.
• Control and monitoring of the borrowers can be handled in a more consolidated manner. Less opportunity of bad debts.
• Securities markets minimize risk factors.
• Support from sister organization.
• More commercial branches.

Functions of Trust Bank Ltd:

Some general functions of Trust Bank Limited are as follows:

• Mobilization of savings of the people earning and safe keeping of all types of deposit account.
• Making advances, especially for productive activities and generally for other commercial and socioeconomic needs.
• Providing banking services to common people through the network of branches.
• Handling of export and import trade and foreign remittances and with especial support to export activities.
• Introducing modern banking services in the country.

Support function

Support functions are vital to the efficient running of the bank; vital to competitive success; and vital to delivering customer satisfaction.

The disciplines that support the business include:

• Finance – Monitoring performance to ensure we are on track.
• Risk Management – Protecting the banks business by identifying, assessing, and mitigating risks.

• Human Resources – Helping managers improve performance through people.

• Corporate Affair – Working with employees, government, and media to maintain and enhance there reputation.

• Legal and Compliance – Ensuring that the way they do business is fair and ethical.

What is Bank?

Bank can be defined as an organization that provides financial services, for example keeping and lending money. It does not have its own working fund. Bank builds up its working fund by way of accepting deposits from the public, where in bank’s position is that of a debtor and on the other hand bank invests major portion of working fund of loans and advances to the public with the object of financing trade.

The maximum satisfactory services it can render to the customers the maximum amount of working capital it can build up and invest. We can therefore, define bank as a service industry. Customer’s satisfaction is the keystone around which all operations and expansion of a bank revolves. The quality of service and success of a bank depends upon some determinants such as:

• Behavioral pattern of the Top Management
• Training and Re- Orientation
• Selection of Personnel
• Motivation of employees
• Systems and procedures
• Physical and social Environment
• System of Reward and punishment
• And above all the quality of the Branch

Banking function:

There are three types of basic functions, which are deal in the Banking business in this branch. For each type of function there are individual departments, which are as follows:

• General Banking Department
• Loans and Advances Department
• Foreign Exchange Department

General Banking Function:

General Banking Division is the most important point of all activities. It is the storage points for deal all kind of transaction like foreign exchange division, loan and advance and itself.

General Banking department is generally deals with the following department with their operations.

• Account opening department
• Cash department
• FDR department
• Products & schemes
• Dispatch department
• FCAD
• Remittance department
• Clearing department

General Banking Function is given below:

Account opening department:

This section deals with opening of different types of accounts. It also deals with issuing of cheque book and different accounts opener. A customer can open different types of accounts through this department. To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. Therefore, the Bank takes extremely caution measure in its selection of customers.

Function of Account Opening Department:

This department provides lots of services; we can call these services as a function of this department, which are as follows:

• Opening Various Types of Account Customer service to provides their account information include balance information

• Provide bank statement
• Provide bank solvency or bank certificate.
• Provide new cheque book
• Account Close
• Transfer account
• Opening SMS Banking service
• Opening Internet Banking service
• Phone Banking service
• Online banking service
• ATM Banking service
• Debit and Credit Card service
• Stop payment service

Types of Account:

A bank has to maintain difference types of accounts for different purposes. Trust Bank Limited (TBL) offers the general deposit product in the form of various accounts, which are as follows:

• Saving Account
• Current Account
• Short Term Deposit Account (STD)

Saving Account:

It is an assortment of the best benefits available in the market, offering a wide range of special treats free of cost to our retail customer. The most attractive treat is the competitive tiered interest rates, which ensures higher returns for larger deposits. Saving bank deposit is popular account maintained in banks. The different matters

Relating SB account is described in the following discussion. The summary of the rules and regulations to open a saving account are as follows:-

• Any person or persons of more than 18 years having sound mind can open and operate this account single or jointly.
• In case of a minor (a person below 18 years), a guardian can open and operate this account on his or her behalf.
• Clubs, Societies, Sole Proprietorship firms, Partnership firms, Limited Companies either public or private and other similar organization are refillable to open such account.
• More than one account cannot be opened in the same name.
• A minimum initial deposit of Tk.2000 is required to open such account.
• Money will be withdrawn through cheques. Withdrawal cannot be more than twice a week and generally the amount will not be more than 25% of the balance available, subject to maximum Tk.20, 000.
• The account holder must have minimum Tk. 1000 balance.
• In case of closure of any account, the bank deducts Tk.100 as closing charge.

Current Account:

A Current Account is running and active account. Holder of such account can freely deposit or withdraw money any times. This account is fully interest free account. Most businessmen maintain Current Deposit account in order to make their daily business activities. This account’s fund change most frequently then any other account because customers use to withdraw and deposit fund in regular basis. The summary of the rules and regulation to open a current account as follows:

• A minimum deposit of Tk.1000 is needed to open a current account.
• The bank charge an incidental charge of Tk.50 for every 6(six) months for the maintenance of the account.
• In case of the closure, the bank charge Tk.100 as closing charge of the account.
• Current Account is interest free account.
• The account holder must have minimum Tk. 2000 balance
• Withdrawal of money is allowed only through the levels of the cheque book, Issued by the bank.

Short-Term Account (STD):

Short-Term Account opens only for short time notice. This account especially open for business purpose. STD Account have lower interest rate is 4%. The deposited amount will be withdrawal only the completion of period. There are some regulations of STD account are as follows:

• The deposit held of these accounts shall be payable on short notice
• STD account shall be opened with a minimum balance of Tk.only 5000
• The interest rate of STD account is 4%.
• Accounts are suitable for the firms, corporation, and public bodies etc., which have excess fund for their disposal for a short time.

Requirement of Opening an Account:

To open a savings, current, STD account, the following documents are mandatory:

For Individual Account:

Two copies of Passport size Photograph of the Clients (Attested by introducer or Verified with Passports).

• Passports/ Nationality Certificate/ Employer’s Certificate of the Proprietor.
• Customer Profile.
• Transaction Profile.
• Photograph of the Nominee(s) attested by the account holder.
• TIN Certificate.

For Joint Account:

• Passports/ Nationality Certificate/ Employer’s Certificate of the Proprietor.
• Customer Profile.
• Transaction Profile.
• Photograph of the Nominee(s) attested by the account holder.
• TIN Certificate.
• Relationship between the account holders.
• Purpose of opening of the joint account

For Proprietorship Account:

Two copies of Passport size Photograph of the proprietor (Attested by introducer or Verified with Passports)

• Passports/ Nationality Certificate/ Employer’s Certificate of the Proprietor.
• Customer Profile.
• Transaction Profile.
• Photograph of the Nominee(s) attested by the account holder.
• TIN Certificate.
• Trade License.
• VAT Registration (if available)

For Partnership Concern:

Two copies of Passport size Photograph of each partner (Attested by introducer or Verified with Passports)

• Passports/ Nationality Certificate.
• Company Profile.
• Transaction Profile of the concern.
• Personal Profile of the partners.
• Photograph of other Nominee(s) attested by the account holder.
• TIN Certificate.
• Trade License of the concern.
• VAT Registration (if available)
• Relationship between the partners.
• Resolution regarding opening and operation of the account.

For Company Account:

Attested or Certified copy of the Memorandum and Articles of Association.

• Certificate of Incorporation.
• Certificate of commencement of Business.
• Two copies of Passport size Photograph of all Directors (Attested by introducer or Verified with passports)
• Passports/ Nationality Certificate of all Directors of the company.
• Profile of the Company.
• Company Profile.
• Personal Profile of all Directors as per enclosed sheet in the company’s letterhead pad.
• Trade License.
• TIN Certificate.
• VAT Registration (if available)
• Board resolution of the company regarding opening and operation of the account.

Minor’s Account:

• Putting the word “MINOR” after the title of the account (with red color).
• Recording of the special instruction of operation of the account.
• The AOF is to be filled in and signed by either the partner or the legal guardian appointed by the court law and not by the minor.

For Private School/College/Madrasa:

• Attested or Certified copy of the Constitution.
• Registration Certificate.
• List of all Executive Member (as per enclosed format).
• Two copies of Passport size Photograph of the account operators (Attested by introducer or Verified with Passports).
• Passports/ Nationality Certificate of the account operators.
• Personal Profile of all members of the governing body and Managing Committee.
• Board resolution regarding opening and operation of the account.

For Club-society/Co-operative Account:

• Registration Certificate from the Joint Stock Company/ Ministry of Social Welfare.
• List of all Executive Members (as per enclosed format).
• Board resolution as per Memorandum regarding opening and operation of the account.
• Attested or Certified copy of the Constitution/ Bylaws.
• Two copies of Passport size Photograph of all Members (Attested by introducer or Verified with Passports).
• Passports/ Nationality Certificate of all Members.
• Profile of the Firm.

Cash department:

There is several numbers of counters work simultaneously in cash section of TBL Comilla Cantonment branch. There are also some electronic counter machines in the cash section by which a huge amount of cash money can be counted within a few minutes. Cash department is the mother section of all departments because all of departments come to here for opening any scheme by receipt or payment cash through clients.

Function of cash department:

There are some functions of cash department which are as follows:

• Cash Receipt
• Cash Payment
• Issuing of Cheque

Cash receipt:

The work of cash receiving counter is examining deposit slips. Depositors will use the prescribed deposit slip supplied by the bank to deposit cash, check, draft, pay order etc. In all types of deposit the teller must check the following things:

The slip has been properly filled up.

• The title of the account and its number.
• The amount in figure and in words in same.
• Date of the instrument.
• Signature of depositor.
• And also they must check the money by their machine.
• After checking all things the teller will accept cash, check, draft, pay-order etc. against deposit slip. The teller will place the cash drawer according to denominations. The teller will place sing and affixes received cash, rubber stamp, and return the customer copy to the customer.

Cash Payment:

In order to safe guard of banks position, the paying banker has to observe the following precaution before honoring a check:

• A check must be looked whether it is an open or closed check.
• The paying officer looks whether the check is post or pre-dated. Because a teller must not pay any postdated check.
• The officer must carefully check the check the cheque number.
• The officer must compare the signature of the cheque with the signature on the specimen signature card.
• The officer must verify the regularity of the endorsement.
• The officer may allow overdue against a cheque if prior arrangement is done with the bank.
• Most important, the officers at first search the account of their software, to know about the sufficient balance of that account.

Issuing of Cheque:

If the cheque has no defect and it is payable, the in charge will sing in the cheque affixing signature verification seed along with his or her initial and will cancel the cheque by striking it by pen. The officers will handover the payment to the appropriate payee.

Reason of dishonor of cheque:

For some reason the cheque will be dishonor to pay cash, which are as follows:

• Insufficient Fund
• Not arrange for.
• Effect not cleared, may be presented.
• Exceed arrangements.
• Full Cover Not Received.
• Payment stopped by drawer.
• Payee’s endorsement irregular\illegible\required.
• Payee’s endorsement irregular, required bank’s confirmation.
• Drawers, signature differs/ required.
• Alterations in date/ figure/words require drawer’s full signature.
• Cheques are post dated/ out of date/mutilated.
• Amount in words and figure differs.
• Crossed cheque must be presented through a bank.
• Clearing stamp requires cancellation.
• Addition to bank discharge should be authenticated.
• Cheque crossed “Account Payee Only”.
• Collecting Bank’s discharge irregular/ required.

In TBL the cash payment done in the following two ways:

Payment through Cash:

Clients give their cheques with their signature. These signatures are justified with specimen signature cards. If these signatures are correct, then A/C numbers are posted into the computer and required balances are given to them after checking that they have sufficient balance it their accounts.

Payment through Transfer:

This transfer is made through account, not in cash. In this process the officer attach a transfer sill to the deposit slip and the posted the transfer balance the desired account. According this time the amount will be posted, as clearing balance after completion of clear house the amount will adjust to the account.     

FDR department:

FDR department is one of the departments in Trust Bank Limited, which department handle two products which are as follows:

Fixed Deposit Receipt (FDR):

Fixed deposit receipt is that which opened for a fixed period. The rate of interest against the FDR is fixed which the bank will pay from time to time. The interests of FDR are varying on the basis of the scheme. FDR is very good scheme of deposit account because in Trust Bank they provide loans against the FDR (80%). The bank allows people to keep their idle money secured and profitable as Fixed Deposit.

The interest rate that the bank offers to the fixed depositors is as follows:

The Bank deducts the Excise duty, the compulsory levy of the government, on the Interest earning in the following structure:

SOURCE: From interview with the In-charge of FDR department of Trust Bank Ltd.

Afferent Provision:

For FDR minimum period is 01 month and maximum period has no limit. FDR may be joint or individual.

Payment on Maturity:

After maturity period, the customer gets the interest plus principal bank

Payment on death:

It is a critical process when FDR holder dies. The rest of the family members must have to submit the following documents:

• Succession Certificate: Court mentioning, who will get & what portion.
• Death Certificate: The payee must make an application including the above documents. The branch will forward it to the head office. It is very important to note that in these cases, the bank have to be very careful. Some FDR mention either or survivor, in this case survivor will get amount.

Either or Survivor:

In case of joint FDR, it one partner dies, then the survivor i.e. who is alive will get the money at maturity or the person’s name in favoring.

Renewal of FDR:

The FDR account will be renewed automatically on the maturity date. The renewed period shall be the prevailing rate for Fixed Deposits.

Duplication:

If the customer lost the FDR receipt, then he has to make application to the bank by filling up an Indemnity bond. For duplicate FDR TBL charges Tk.25.

Custody Indemnity Bond:

The bank will have to maintain these indemnity bonds with care in a safe custody or vault.

FDR Block

A receipt, given to the applicant after opening the FDR account, will show it after maturity to take his money back.

Specimen Card:

The signature of the FDR account holder is maintained in the specimen card.

Closure:

After payment at maturity period, the FDR account is closed. The FDR account holder must surrender his FDR receipt during the payment. It is to notify that in case FDR, the bank entries the full amount at maturity date in advance when a customer opens a FDR account. After the maturity FDR receipt and FDR form are attached together and on the front page of the FDR form page of the FDR form bank authority writes “Close of FDR account” and gives entry in the ledger.

Total amount of interest against the SP will be 12×2875=34500 Tk.

Closing charge, excess duty etc.

Products & schemes:

Deposit Product:

• Current Deposit Account
• Saving Deposit Account
• Fixed Deposit (3 months to 3 years term)
• Saving Certificate
• Trust Smart Savers Scheme (TSSS)
• Trust Money Double Scheme (TMDS)
• Trust Money Making Scheme (TMMS)
• Monthly Benefit Deposit Scheme (MBDS)
• Trust Education Scheme (TES)
• Lakhopati Savings Scheme (LSS)
• Interest First Fixed Deposit Scheme (IFFDS)

Investment Product:

• Corporate Financing
• Trust consumer Durable Scheme (TCDS)
• Trust Marriage Loan Scheme (TMLS)
• Trust Car Loan Scheme(TCLS)
• Trust House Building Loan Scheme(THLS)
• Trust Micro Credit for Renovation & Reconstruction of Dwelling Houses

Foreign Exchange Investment:

• Foreign Currency Deposit Account ( FC A/C)
• Resident Foreign Currency Deposit Account (RFCD A/C)
• Non Resident Foreign Currency Deposit Account (NFCD A/C)
• Traveler’s Endorsement (Cash and Travelers Cheque)
• Remittance of Foreign Currency
• Import and Export Transaction
• Foreign Exchange Dealing
• Purchase of Foreign Currency Draft, Cheques, Travelers Cheques
• Wage Earner’s Development Bond

Others Products:

• Trust Locker Service
• Trust Tele Banking
• Trust Online Banking
• Trust SMS Banking

Deposit Product:

In a country like Bangladesh where stock market is not stabilized and investment opportunity is threatened by the corruption, political power and economic downturn (both domestic & global), the safest and least risky way to generate money for an individual is to deposit money in a Bank.

To respond this need, Banks are offers different types of deposit products and services. To keep in touch with competitive market, the bank has recently introduction four attractive deposit products. The products having their distinctive have already gained and are gaining the response from the existing and prospective clients. The products are as follows:                                                            

• Current Deposit Account
• Saving Deposit Account
• Fixed Deposit (3 months to 3 years term)
• Saving Certificate
• Trust Smart Savers Scheme (TSSS)
• Trust Money Double Scheme (TMDS)
• Monthly Benefit Deposit Scheme (MBDS)
• Trust Money Making Scheme (TMMS)
• Trust Education Scheme (TES)
• Lakhopati Savings Scheme (LSS)
• Interest First Fixed Deposit Scheme (IFFDS)

Others Products & Services:

Trust Locker Service:

There are some more 500 lockers the Dilkusha Corporate Branch of The TBL. The lockers are now rented on Security Deposit Basis instead of yearly or monthly rental Basis. The lockers are allotted on most flexible term and meager Security Deposit   refundable at the time of closing the lockers

Trust Tele Banking:

In Trust Bank they provide their customers as 24 hours Phone Banking services. By this TBL services customers got any banking service like balance quire, bank statement position etc.

Trust Online Banking:

Trust online banking service is much upgraded services, by this service customer can transfer their money to anywhere within some time. For this online service banker also comfortable to done their work.

Trust SMS Banking:

Trust Bank recently introduces the SMS banking service, which is much useable for customer. In this service customer can get any information about their account, such balance, statement position etc.

ATM Card service:

The bank offers its clients “Free of Cost” ATM (Q-Cash) card. To be a holder of the Card the person needs nothing but to be a client or account holder of the bank. The bank charges no initial card processing cost or no yearly it monthly service charge. It seems to be a value added service to the clients. TBL offers Debit,

Credit Card & International Gold Card. Fees & Charges

(Nation)

FCAD:

FCAD is the short form of Financial Control and Account Department, which is a very crucial department for each Bank. This department is maintaining any financial control & account related matter.

FCAD operate the following function:

• Maintain Book Keeping
• Maintain of Voucher Preparation of general ledger and clean cash book
• Maintain of Sundry
• Any Suspense
• Account for internal purpose
• Inter Branch Transaction Entry and posted to the Branch Account
• Maintain employees salary
• Maintain Daily Entertainment Expense for Branch
• Collection of voucher
• Collection of posting advice from other department and final checking of those
• Maintain debit account
• Maintain Credit Account
• Maintain Balance
• When they got any voucher of different department than they will check the prepared by, initial of the concerned officer
• Remarks
• Preparing the summery of any account profile as needed, but must be in monthly.
• Monthly Income Statement of The Branch
• Monthly Balance Sheet Of the Branch
• Monthly Affairs of the Branch and send it to the head office
• Must be Maintain Daily Affairs of the Branch and checking this affairs to the branch manager
• Maintain Daily Stationary expense
• Top sheet collection
• Collect and Accumulate the IBCA & IBDA from different department, and finally these are checking.
• Checking the Extract of Branch for responding entries

Remittance department (Local):

Bank has a wide network of branches all over the country and offers various kinds of remittance facilities to the public. Local remittance is one of the main components of general banking. The components of local remittance are-

• Demand Draft (DD)
• Telegraphic Transfer (TT)
• Pay order (PO)

Remittance & bills section plays a very vital role in case of Banks Customer Service Section. Roles & Responsibilities of remittance section knows no bound.

Activities of Local Remittance are:

• Issue and payment of pay Order (PO), Demand Draft (DD), and Saving Certificate Issue (Sanchaypatra issue).
• Execution of Inward and Outward Telegraphic Transfer (TT)
• Non client services like Telegraphic transfer and pay Order.
• Follow up with clients.
• Internal and local collection of cheque and bills.

Demand Draft (DD) Issue:

According to section 85 (A) of the Negotiable Instrument Act, A Demand Draft is “An order to pay money drawn by one Branch of the Bank upon other Branch of the same Bank for a sum of money payable to order on demand”. Sometimes customers use demand draft for the transfer of money from one place to another. It is must need for sending money out side Dhaka city.

For getting a demand draft, customer has done the following thing:

• To fill up an application form.
• The form contains date,
• Name and address of the applicant,
• Phone number of the applicant
• Signature of the applicant,
• Cheque number (if cheque is given for issuing the DD),
• Draft number,
• Name of the payee,
• Name of the drawee branch on which the DD will be drawn and the amount of the DD.
• The form will be duly signed by the applicant and by the authorized officer.
• TBL charges 15% commission on the face value of DD as service charge.
• Amount in Figure and words
• The party in cash or cheque as per arrangement should deposit total amount.

Account Treatment

Cash or party Account                                                          Dr

TBL Account                                                                        Cr

TBL Income Account: Commission                                     Cr

Telegraphic Transfer (TT):

Telegraphic transfer is so far the quickest method of transferring funds from one place to another place. It is an order from the issuing branch to the drawee bank / branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by telephone and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch. No charges are required for TT.

Issuance of TT:

TT application form is to be filled in by the remitter with full particulars of the remitter is verified by the banks officials. Money is received in cash or by debiting remitters account with commission and telephone charges. Message to be passed immediately to the drawee branch under secret test by telex, telephone followed by TBL for confirmation.

Account Entries for Issuance of TT:

Cash or Remitters Account                                                     Dr

TBL Account                                                                           Cr

Income Account: commission                                                   Cr

Telephone Charges Account                                                    Cr

Payment of TT:

One receipt of TT message test number should be decoded immediately.

Account Entries for TT Payment:

TBL Account                                                                           Dr

TT Payable Account                                                                 Cr

TT payable Account                                                                 Dr

Clients Account                                                                        Cr

SOURCE: Form interview with the in-charge of remittance department of Trust Bank Ltd Dilkusha Corporate Branch.

Pay Order:

For issuing a pay order, the client is to submit an application in the prescribed form. This form should be property filled up and signed. The procedure of the issuing pay order is similar to that of the Telegraphic transfer.

For issuing pay order TBL charges commission on the following rate:

SOURCE: Form interview with the in-charge of remittance department of Trust Bank Ltd. Dilkusha Corporate Branch.        

Payment of Pay Order:

The pay order is presented to the bank either through clearance or credit to the client’s account. While payment, relative entry is given in the pay order register with the date of payment.

Account Treatment of PO

DD placed without advice:

DD paid without advice                                                 Dr

Party’s Account                                                             Cr

After Receive Advice

TBL Account                                                                  Dr

DD paid without advice                                                  Cr

DD advice received without instrument

TBL Account                                                                  Dr

DD payable                                                                    Cr

After receiving DD (instrument)

DD payable Account                                                       Dr

Party’s Account                                                              Cr

Stopping Payment of the Draft:

The payment of draft cannot by the banker even on receiving instructions from the purchaser after delivery of the draft. This is a simple reason that issuing a bank draft, the banker takes upon himself a commitment in favor of a third party. For that reason, a banker draft is as good as a promissory note issued by a banker and it is accepted by all for the goodwill and the reputation of the banker.                                                 

In case of collecting DD, PO, following things is to be carefully checked:

• Instrument of TBL
• Crossing Seal
• Clearing Seal
• Branch Name
• Amount same in word and figure
• Signature verification
• Avoid the stop order PO, DD
• Test key verification. Every TT must have test key. DD over Tk.25000/- must have test key
• Maintenance of PO/TT/DD issue and payable books balancing at the end of the month.

Clearing department:

For safety and security in financial transaction peoples are use financial instruments like DD, PO, Cheque, etc. Commercial Banks duty is to collect this instrument on behalf of their customer. This process that the bank are use is known as Clearing and Collection which handle by the name of Clearing department of all Bank.

If a DD, PO, Cheque of a bank comes from another bank within the range of the local clearinghouse it is sent for collection through clearing house to the respective branch of Trust Bank Limited and I am lucky because TBL (Dilkusha Corporate Branch) has the clearinghouse.

Essential things for clearing the instrument:

There are three essential things required for clearing the instrument, which are as follows:

• Crossing seal
• Endorsement seal
• Clearing seal

Clearing and Collection procedures:

Clearing and collection transaction are handled in various ways, which are as follows:

• Outward Clearing Cheque
• Inward Clearing Cheque
• Outward Bill Collection (OBC)
• Inward Bill Collection (IBC)

Outward Clearing Cheque:

Whenever any branch of Trust Bank Ltd. receives a cheque to be collected from any other bank it sends the cheque to its collecting branch (Dilkusha Corporate Branch). Dilkusha Corporate Branch sends it to Bangladesh Bank. Bangladesh Bank arranges the cheques separately by the name of different bank and then it send to the respective bank for clearance with the use of the clearinghouse.

Bangladesh Bank conducts this job of clearing by the name of CLEARING HOUSE. This is done twice a day First house and Return house. First house is to deliver cheques and collect cheques from other banks. Return house is to return the dishonored cheques. The practice among the bank is to give only the name of those cheques, which were not honored.

Note: Bangladesh Bank maintains separate A/C for the different bank and settles the balance considering the flow of cheque in both ways that is inward and Outward.

As soon as the Dilkusha Corporate branch gets the clearance, it sends an Inter Branch Credit Advice (IBCA) to the branch, who has sent the cheque for collection. Receiving the IBCA is considered as clearance for the payment to the party. There have some sequences of these outward clearing procedures, which are as follows:

• Receipt of cheque by the officer
• Special crossing to given on the cheque with bank stamp and crossing seal
• Clearing seal to be given
• Endorsement to be given at the back of the cheque
• Cheque schedule should be attached with each outward clearing cheque

Account treatment:

Before Clearing:

TBL general A/C                                              Dr

Client A/C                                                       Cr

After the cheque is honored by the collection bank

IBCA A/C                                                       Dr

TBL general A/C                                             Cr

If the cheque is Bounce or Dishonored

Client A/C                                                       Dr

TBL general A/C                                              Cr (Adjusted)

Inward Clearing Cheque:

This is the opposite flow of the outward cheque clearance. When other bank sends, the cheque to Trust Bank Ltd. for clearing through CLEARING HOUSE the technique is followed. Here also the Dilkusha Corporate branch receives the cheque and sends them to the respective branch for clearance.

The treatments for these cheques are as follows:

• Verification of the position of the account of that account holder to know whether the cheque can be honored or not.
• Register entry in the Inward register book
• If there is any return than it should be marked separately
• Sorting of various types of inward clearing vouchers
• The credit advice is collected by the local office
• Here there happens an effect on TBL (inter bank transaction account) in account department where the particular client account is debited and the collection bank is credited by the amount of cheque

Outward Bill Collection (OBC):

When Dilkusha Corporate branch send any cheque drawn on another branch outside Dhaka city (Bogra Branch) of TBL, for collection on part of its account holder, than this collection procedure will be treated as OBC. OBC happens when the cheque would be drawn on another branch of TBL that is outside the Dhaka city.

The sequence of OBC procedures is as follows:

• Reception of the cheque from account holder
• Seal of the Dilkusha Corporate Branch to be given on the cheque and the end endorsement to be on back of cheque
• IBCA is prepared and sent to Bogra Branch along with respective instrument
• Dispatch to the department for posting favoring the particular account
• At least it will be posted in the account department.

Inward Bill Collection:

IBC is the reverse procedure of OBC; that is, if a cheque is sent to Dilkusha Corporate Branch, Drawn on Dilkusha Corporate Branch but deposited to another branch of TBL by another party for collection than before sending to Dilkusha Corporate Branch they mention an OBC number, Dilkusha Corporate Branch writes another number against the OBC number known as IBC.

• The sequence of IBC procedures are as follows:
• Verification of client account that whether there remains enough money or not
• Entry of IBC number into the INC register book
• Issuance if voucher
• Credit advice to be send to the collecting branch
• Particular client account debit
• Branch Account credit
• If the paying banker returns the cheque to the bank, identification the causes for returns.

 Questionnaires survey:

To identify the performance of Trust bank Limited, I make a survey to their client.  Total respondent 50. Among them the number of male respondent is 23 and female respondent 27.

Both male and female give their valuable opinion to make successful this survey. All of my respondents are clients of Trust Bank Limited. They have account in this bank and they are directly and indirectly related in this bank.

In this purpose I take interview this people.

Customer service is an important part for every bank. Among the 50 respondents, highly satisfied are 15 people, 22 people said they provide good service and 13 people said TBL provide satisfactory customer service.

Most of the clients agree that Trust Bank environment is good. Above them 13 people said environment is excellent, 28 people said it is good enough and 9 people said satisfactory environment.

Analysis result shows that most of the customers agree that the employees are always ready to help them. They are very co- operative, but 13 people said that sometimes they are co-operative and 5 people said that they are not always cooperative and ready to help.

From the survey it is found that customer is getting more facilities comparing to other banks. But some cases like interest rate they are not getting more facilities.

The majority of person support that they should modernize their equipment for banking service. Very few customers are satisfied with their technical support. Among them 17 people said yes, 24 said partly and 9 people said not at all Trust bank using modern technology to serve their customer.

Among 50 respondent, 30 people said that electronic product like ATM service, Credit Card, Debit Card, Internet Banking, On – line Banking etc has been catering their banking need but 20 people said no.

The entire facilities of Trust Bank is enough good. 43 people said that they are satisfied with the entire facilities but 7 people are not satisfied.

They said their some procedures are so lengthy. So, they take lots of times to provide their service. Their interest rate is so high. They have not so branches in Bangladesh and across the country.

• The customer service is very much impressive than of other financial Institutions. Although, I have no idea about other branches of TBL, But in particular, TBL Comilla Cantonment Branch is a good example of better customer service.

• The management has hardly overcome the notion “A bank of armed forces at cantonment” i.e. the banking concept is yet to be universalized.

• Computerization is speeding up the performance of the organization but the software used by the TBL- “Flora Banking System” has some problem yet. It is easy to handle but contain some flaws.

• The manager and other high officials have no power for decision –making. The branch manger have no power to sanction loans. In every bank there is a certain amount that a branch manager can sanction, but in this bank if anyone want to take a single Taka for loan then the manager has to for the head office approval. Sometimes may be the cause of losing customer, because it will take time to sanction a loan.

• The profit earned by the bank in the previous periods is satisfactory but the deposit mobilization and accumulation is not as targeted.

• The product offered by the TBL is very limited in range comparing to the contemporary banks. The clients can hardly find the best alternative of particular products.

• Special schemes like consumer credit scheme, monthly saving scheme, Western Union Money Transfer etc are very popular.

• Not enough computers available to provide service to its Clients.
• In general banking department they follow the traditional banking system. The entire general Banking procedure is not fully computerized. As a result some is processing for example collecting money from the deposit take a long time to perform.

• There are not enough computers in Accounts Opening Section and Remittance section. That’s why the service is not prompt as the customer’s demand.
• Lack of variety of service is also a drawback of the general Banking area of the Trust Bank Ltd. The bank provides only some traditional limited service to its client. As result Bank is falling behind in competition.
• According to some clients opinion introducer is one of the problems to open an account. If a person who is new in the city wants to open an account, it is a problem for him/ her to arrange an introducer of SB or CD accounts holder.
• They have no ATM booths in Comilla Cantonment Branch area. This is creating big problem for the customer. If they use another bank ATM both then its high charges applicable.

• From security and confidentiality points of view, clients the bank are absolutely risk free.

• The cash counter I thing is congested and the procedure is also traditional.
• The Bank has remained dynamic in its continued efforts to improve & increase core competence & service efficiency by constantly upgrading product quality, service standards.

• Different types of account holders are the main assets of the bank; most of the account holders are the savings and term deposit holders.

• The rules and regulation are strictly followed for handling the customers.
• The Trust Bank Limited follows most of the rules and regulations of Bangladesh Bank Foreign Exchange Regulation Act for remittance department & for any other departments.
• Poor educated people & rural base people hesitate to go TBL for general banking service because they think this bank is Only for Army people.
• Comparatively the number of general banking service taking people are poor than any commercial bank at comilla.

For improve their performance and remove the problem Trust Bank Limited has to do something and these are:

• Giving better customer service. Full computerization of all activities, Supply of new PC’s in place of old one, sufficient number of PC needed for proper working.
• Network should develop for every working activity because some times when client come to take service then they face problem. In this reason they make a bad impression for the bank.
• Bank environment should be needed to develop to attract their valuable customer.
• The employee is to be smart and try to provide service fast to their clients.
• Separate customer service department should be introduced so that the enquires and problem can be raised.
• To serve satisfactory client service.

• Perspective of banking sector in Bangladesh, there are more competition and facing globalization needs. So they should improve their service quality and developing all new technologist advantage.

• To raise the providing general banking service staff of TBL.

• Easy & smooth ways handle poor educated & rural base people.
• General banking service system make smooth & easy.

• To develop marketing department of general banking service.

• TBL should conduct campaign program of general banking service towards people outside of capital.

Conclusion

The Trust Bank Limited (TBL) is a scheduled commercial bank, in spite of its being a sole initiative of the Army Welfare Trust (AWT). The profit earned by the bank is used to the welfare activities of the Trust. The Trust Bank Limited pursues decentralized management policies and gives adequate work freedom to the employees. This results in less pressure for the workers and acts as a motivational tool for them, which give them, increased encouragement and inspiration to move up the ladder of success. The profit earned by the bank is used to the welfare activities of the Trust. The economic service of the bank is open to all caste and class of people. The bank is formatting and accomplishing various welfare project and activities for the socio economic infrastructure development of the country and the active participation to the up gradation of the comparative feeble class of the society, in stead of accumulation profit. I t has also been linked with many foreign banks to facilitate the foreign currency transfer by members of armed forces working in the UN and emigrant Bangladesh. The report is aimed at studding and understanding the various service offered by TBL to its clients. In addition the report also studies how Trust Bank Limited has maintained growth in its general banking business by maintaining and enhancing its relationship with the clients. The success of TBL is largely credited to its friendly, co-operative approach, understanding the special banking needs of each and every client and concern for the benefits and welfare. From the beginning, the prime objective of Trust Bank Limited was to increase capitalization, to maintain disciplined growth and high corporate this standard and enhance the health of the share holders. Its customer service is very much impressive than of other financial institutions. Their effective strategy, Time demand offerings, up to date rules and regulation to cope with international marketing and their friendship customer services easily impress the clients. So, now TBL is in leading position in Financial Institutional sectors in Bangladesh. The financial performance of the bank is recent years is pretty well. More over any laxity in operational ground can considerably be compensated through the cordial services provided by a staff of talented officers or employees.