Report on BBA Program

Origin Of The Report: As a partial requirement of BBA program I need to go for internship to gather practical experience and need to submit the report regarding that practical knowledge. This report is originated after completing the BBA program from Department of Marketing under State university of Bangladesh This report is the outcome of the assigned internship, suggested by the supervisor, Mr. Sabbir Ahmed Department of Marketing, State university of Bangladesh.. The report will definitely increase the knowledge of other students to know the banking industry of Bangladesh, and the various services DBL is providing to be the premier financial institution in the country. Objective Of The Report: The primary objective of the study is to meet the partial requirements for the fulfillment of the course ‘practical orientation in Banks’.

• The core objectives of the practical orientation program in banks are as follows –
• To fulfill the partial requirement of BBA Program.
• To familiar with the working environment in bank.
• To apply theoretical knowledge in the practical field.
• To observe and analyze the performance of the specific branch and the bank as a whole.
• To be acquainted with day to day functioning of service oriented banking business.

Scope Of The Report: The scope of the report was to find the financial aspect of the operation of the bank. An infrastructure of organization has been detailed, accompanied by company corporate perceptive and look into the future. The scope of this report is limited to the overall descriptions of the bank, its services, and its position in the industry, and its competitive advantage. The scope of the study is limited to organizational setup, functions, and performances. Methodology Of The Report: This report is prepared based on information collected from different sources. But despites this I have emphasized more on my practical observation. Almost the entire report consists of my practical observation. It has followed specific methodology to prepare this report worthy.

• Population: Population size in this report covers all the branches of Dhaka Bank Ltd located all over in our country.
• Sample:    The Dhaka Bank Limited, Dhanmondi Branch.

 Sources Of Data:           Primary sources:

• Observation of banking activities.
• Conversation with employees, experts’ opinions of Dhaka Bank Limited, Dhanmondi Branch.

Secondary sources:

• Daily diary (containing my activities of practical orientation of Dhaka Bank Limited) maintained by me.
• Corporate Portal of Dhaka Bank Limited maintained by IT division
• Bangladesh Bank economic review
• Different websites
• Other published documents provided by Dhaka Bank Limited.

Limitations Of The Report: There are some lacks of information due to some limitations. It is very difficult to collect all the information within 2 months time. * Confidential information regarding past profit or product cost, financial information was not accurately obtained. Alike all other banking institutions, DBL is also very conservative and strict in providing those information. In those cases, I have relied upon some assumptions, which in result have created certain level of inaccuracy. Still, I had tried my best in obtaining that sensitive information, as much as possible. *   Time constraint was another limitation restricting this report from being more detailed or analytical. The relationship mangers at the operation or strategic level of the concerned department are awfully busy with meeting their targets. So, it was very difficult for me to get them free and obtain some practical ideas regarding their expectation and opportunities regarding my topic. But they have given me practical ideas whenever they get free time. With all these limitations I tried my best to make this report authentic and worth reading.

Banking System In Bangladesh:

  Historical Overview:

Bangladesh inherited its banking structure from the British regime and had 49 banks and other financial institutions before the Partition of India in 1947. The Dhaka Bank established in 1806 was the first commercial bank in the Bangladesh region of British India. Bengal Bank, the first British-Patronized modern bank established in India in 1784, had opened its two branches in 1873 in Sirajganj and Chittagong of Bangladesh region. Later in 1862, the Bengal Bank Purchased the Dhaka Bank and opened its first branch in Dhaka in the same year by reconstituting and merging the Dhaka Bank. Thereafter, another branch of Bengal Bank was opened in Chandpur in 1900. A number of other branches of Bengal Bank were opened in this region and some branches had been closed in Course of time. There were six other branches of Bengal Bank in operation in the territory of Bangladesh until the Partition of British-India in 1947 and  these branches were at Chittagong   (1906), Mymensing (1922), Rangpur  (1923), Chandpur  (1924), and Narayanganj  (1926). Following the emergence of Pakistan in 1947, Stat Bank of Pakistan, the Central Bank of the country, came into being in July 1948. Later, the National bank of Pakistan, a strong commercial bank was set up in 1949. In all, 36 scheduled commercial banks were in operation in the whole Pakistan until 1971. Pakistanis owned most of these banks and only three of them namely, National Bank of Pakistan, Habib Bank Ltd. and the Australasia Bank Ltd, had one branch of each in East Pakistan in 1949. During 1950-58, there other Pakistani-owned banks, Premier Bank Ltd., Bank of Bhowalpur Ltd. and Muslim Commercial Bank, had opened their branch in East Pakistan. Four Pakistan-owned banks, the United Bank Ltd., Union Bank Ltd., Standard Bank Ltd. and the commerce Bank Ltd. Conducted banking business in the Province during 1959-1965.But all of them Had their headquarters in west Pakistan. East Pakistan had only two banks Owned by local business groups white headquarters in Dhaka. These were the Eastern   Mercantile Bank Ltd.  (Presently Pubali Bank Ltd.) And Eastern Banking Corporation Ltd.  (Presently Uttara Bank Ltd.) established in 1959 and 1965 respectively. In the beginning of 1971, there were 1130 branches of 12 banks in operation in East Pakistan. The foundation of independent banking system in Bangladesh was laid through the establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127of 1972 (which took effect on 16^th December, 1971). Through the Order, the eastern branch of the former State Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a full-fledged office of the central bank of Bangladesh and the entire undertaking of the State Bank of Pakistan in, and in relation to Bangladesh has been delivered to the Bank. Bangladesh Bank has been entrusted whit all of the traditional central banking functions including the sole responsibilities of issuing currency, Keeping the reserves, formulating and managing the monetary and credit policy, regulating the banking system, stabilizing domestic and external monetary value, preserving the par value of Bangladesh Taka, fostering economic growth and development and the development of the country’s market. The Bangladesh Banks (Nationalization) Order enacted in 1972 nationalized all banks except foreign ones. Six nationalized banks were formed through merging the existing banks of the period. The rate of growth and development of banking sector in the country was extremely slow until 1983 when the government allowed to establish private banks and started denationalization process: initially, the Uttara Bank in the same year and thereafter, the Pubali Bank, and the Rupali Bank in 1986. Growth pattern of banks during the period 1973-1983. There were no domestic private commercial banks in Bangladesh until 1982; When the Arab-Bangladesh Bank Ltd. commenced private commercial banking in the country. Five more commercial banks came up in 1983 and initiated a moderate growth in banking financial institutions. Despite slow growth in number of individual banks, there had been a relatively higher growth of branches of nationalized commercial banks (NCBs) during 1973-83. There number had increased from 1512 in 1973-74 to4603 in 1982-83.

 Current Structure Of Banking Institutions:

Following is the country’s banking system as on 30 December 2000. Nationalized Commercial Banks (4)

• Sonali Bank (1972),
• Janata Bank (1972),
• Agrani Bank (1972),
• Rupali Bank (1972).

DFIs/Specialized Bank (5):

• Bangladesh Krishi Bank (1973),
• Bangladesh ShilpaBank (1972),
• Bangladesh Shilpa Rin Sangstha (1972),
• Rajshahi Krishi UnnayanBank (1987),
• Bank of Small Industries & Commerce Bangladesh Ltd. (1988)

Domestic Private Commercial Banks (27):

• Pubali Bank (1972, Denationalized in1983),
• Uttara Bank (1972, Denationalized in 1983);
• Arab Bangladesh (1982),
• IFIC Bank (1976, Started full-fledged banking on 24 June 1983),
• Islami Bank Bangladesh (1983),
• National Bank (1983),
• The City Bank (1983),
• United Commercial Bank  (1983),
• The Oriental Bank ( Formar Albaraka Bank ,1987)
• Eastern Bank (1992),
• National Credit And Commerce Bank (1993),
• Prime Bank (1995),
• South East Bank (1995),
• Dhaka Bank (1995),
• AL-Arafah Islami Bank  (1995),
• Social Investment Bank (1995),
• Dutch Bangladesh Bank (1996),
• Mercantile Bank(1999),
• One Bank (1999),
• Exim Bank (1999),
• The Premier Bank (1995),
• Standard Bank (1999),
• Bangladesh Commerce Bank (1999),
• Mutual Trust Bank LTD(1999),
• The Trust Bank (1999),
• Bank Asia (1999), and
• First Security Bank (1999);

Foreign Private Bank (13):

• American Express Bank (1996),
• Credit Agricole Indosuez  (1980),
• ANZ Grindlays Bank (1949),
• Standard Chartered Bank(1965),
• Habib Bank (1976),
• State Bank of India (1975),
• National Bank of Pakistan (1994),
• Muslim Commercial Bank (1994),
• City Bank N.A (1995),
• The Bank of Nova Scotia (1999),
• Hanvit Bank (1996),
• Al Faysal Islami Bank of Bahrain EC (1997),
• Hong Kong Shanghai Banking Corporation (1996), Bank Of Tokyo- Mitsubishi (Representative Office).

[Note: Years in the bracket indicate year of establishment] The list above is exhaustive for the scheduled banks. There are now ten non- scheduled banks in Bangladesh, and they are Jubilee Bank in Khulna, Naray- anganj Co-operative Bank, Eden Bank, Sayedppur Commercial Bank, The Comilla Co-operative Bank, Dinajpur Industrial Bank, Rajshahi Bank, Sanker Bank, Madaripur Commercial Bank, and Faridpur Banking Corporation. But data are not available on their Performance, as they do not require submitting returns to the country’s central bank. Contrary to the scheduled banks, the non-scheduled banks are not subject to the regulation of the Bangladesh Bank. Bangladesh Samabaya Bank Ltd. (BSBL), the apex institution of all central co- operative societies, co-operative land mortgage banks, central sugarcane growers associations, Thana co-operative societies, and other societies in the country. Any of the above societies can be a member of the samabaya Bank and on 30 June 1999 the bank had 511 members. Total deposits and advances of the BSBL on 30 June 2000 stood at Tk.2.20 cores respectively. The authorized and paid up capitals of the bank were Tk.10.00 cores and Tk.3.20 cores respectively. It accumulates loan able investible funds through borrowing from the Bangladesh Bank against the repayment guarantee of the government of Bangladesh.

CHAPTER-2

Overview Of The DBL

Background Of The Company: Bangladesh economy has been experiencing a rapid growth since the 90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to make channel consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to respond to this need and established Dhaka Bank Limited in the year 1995. The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of taka. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at taka. 1289 million as on 31 December 2006. The Shareholders’ Equity (capital and reserves) of the Bank as on 31 December, 2006 stood at tk.2551 million, including the sponsor’s capital of Tk. 338 million. The bank has 37 branches including two Shariah-based branches and an offshore banking outlet across the country and a wide network of correspondents all over the world. The bank has plans to open more branches in the current fiscal year to expand the network. The bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest technology and a team of highly motivated officers and staff. In its effort to provide Excellence in Banking services, the bank has launched fully automated phone banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank’s clientele through online and home banking solutions. The Commitments: DHAKA BANK values its customers. Each customer’s expectations of superior services and products are bank’s prime moves. Dhaka Bank has reached its 13 year in banking. On this joyous occasion, Dhaka Bank highlighted its core values. These are –

• Patience
• Focus
• Goal
• Experience
• Loyalty
• Care
• Sincerity
• Foresight
• Punctuality
• Trust
• Knowledge.

The Mission: To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking. The Vision: At Dhaka Bank we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investment. Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of our vision- Excellence in Banking. The Values:

• Customer focus

• Integrity
• Teamwork
• Respect for the individual
• Quality
• Responsible citizenship.

Strategies:

• Establish DBL as one of the top five successful private commercial banks by 2009.
  • Build a strong deposit base.
  • Introduce new products & services and upgrade existing products & services at comparatively low cost in order to assure quick respond to the changing demands in the market.
    • Strengthen corporate identity and values.
    • Bring the entire system under a very advanced IT platform.
    • Socialize and present the bank to the community as a corporate partner.

Goals:

• Increase revenue 20% each year.
• Achieve cost synergy by 20%
• Reduce cost of funds to 7%
• Reduce dependence on bank deposits to ensure continuous flow of core funds through base deposit.
• Change deposit mix time vs. transaction accounts to 60:40.
• Reduce non-performing loan to less than 1% of total assets.

 Objectives: The prime objective of DBL is to deliver a quality that demonstrates a true reflection of their vision-Excellence in Banking. Improve the quality of lone and services, and diversify the sources of revenue.

• Focus on Current, Savings & Short Term Deposit Accounts to reverse the ratio (26:74) with Fixed Deposit Receipt.
• Take immediate action required to reverse the rise of cost of fund.
• Increase fee based income: increase volume & fee of Letter of Credit & guarantee, increase export and exchange earnings.
• Reduce operating cost by at least 20%.

Corporate Social Responsibility: In the era of Societal Marketing Concept, each organization has to pay attention to customers and society. Because customers are very well known about substitute and they do prefer to build relation with such organization which really thinks about CSR. Dhaka Bank is committed to their corporate responsibility toward the community. They allocate 2% of their tax profit for CSR practices each year. They have also taken numerous initiatives towards social welfare and community development. They also donated-

• Bangladesh Institute of Research and Rehabilitation in Diabetes, Endocrine & Metabolic Disorders (BIRDEM).
• Center for Women and Child Health (CWCH)
• Bangladesh Eye Foundation
• SEID Trust
• MotijheelGovt.BoysHigh School
• IdealSchool and College
• BADCHigh School
• Bangladesh under-19 Cricket team
• 20^thBangladesh International Junior  Tennis
• Dhaka Bank Independence Day Inter Club Tennis and Squash Tournament 2006
• Pacific Hospital Limited for treatment of poor patients
• Chhayanaut
• Anti-Drug Campaign in Chittagong
• ShahidZiaurRahmanShishuHospital
• Individual assistance for treatment.

 Board Of Directors: Chairman:                             Mr. Altaf Hossain Sarker Vice Chairman:                     Mr. Mohammed Hanif Directors:                               Mr. Abdul Hai Sarker Mr. A.T.M. Hayatuzzaman Khan Mr. Matin Uddin Ahmed Barabhuiya Mr. Khondoker Monir Uddin Mr.Md. Amirullah Mr. Aminul Islam Mr. Abdullah Al Ahsan Mr. M.N.H. Bulu Mr. Jashim Uddin Mr. Shameem Hussain Managing Director:                 Mr. Khandoker Fazle Rashid   Deputy Managing Director:    Mr. Abu Musa (Risk Management)   Deputy Managing Director:    Mr. Tanweer Rahim (Business Banking)   Deputy Managing Director:    Mr. Kaiser Tamiz Amin (Operations) Company Secretary:               Mr.  Arham Masudul Huq Existing Branches: Dhaka Bank limited has 45 conventional branches and 2 Islamic Banking branches. The registered office (Head Office) of Dhaka Bank Limited is at Biman Bhaban, 100 Motijheel C/A, Dhaka-1000. The detailed list of Dhaka Bank Limited branches is as follows:

   Organizational Structure Of Dhaka Bank Limited: Designations are in ascending order-              Chairman Board of Directors Executive Committee Managing Director Additional Managing Director Deputy Managing Director: Senior Executive Vice President Executive Vice President Senior Vice President Vice President Senior Assistant Vice President First Assistant Vice President Assistant Vice President: Senior Principal Officer Principal Officer Senior Officer: Probationary Officer Junior Officer Assistant Officer Organizational Hierarchy:

Departments Of DBL:

Dhaka Bank maintains the jobs in a proper and organized considering their interrelationship that are allocated in a particular department to control the system effectively. Different departments of DBL are as follows:

• Human resources division

Dhaka Bank Limited recognizes that a productive and motivated work force is a prerequisite to leadership with its customers, its shareholders and in the market it serves. Dhaka bank treats every employee with dignity and respect in a supportive environment of trust and openness where people of different backgrounds can reach their full potential. The bank’s human resources policy emphasize on providing job satisfaction, growth opportunities, and due recognition of superior performance. A good working environment reflects and promotes a high level of loyalty and commitment from the employees. Realizing this Dhaka Bank limited has placed the utmost importance on continuous development of its human resources, identify the strength and weakness of the employee to assess the individual training needs, they are sent for training for self-development. To orient, enhance the banking knowledge of the employees Dhaka Bank Training Institute (DBTI) organizes both in-house and external training.

• § Personal banking division :

The personal banking department deals with the consumer credit schemes such as the personal loan, car loan, education loan, tax loan, personal secured loan that are tailored to meet the demand of individual customers. The manager of DBL credit who approves and administers all the activities heads this department. The approval officer mainly rejects or approves the credit requests. After being checked by the approval officer, the credit requests go to the processing officer for further processing of the application.

• § Treasury division:

Their main job is to take decisions regarding purchase and sell of foreign Currency. The purpose of treasury’s operations is to utilize the funds effectively and arrange funds at a lowest possible rate of interest, through maintaining effective relationship with other banks and following the Government rules and foreign exchange regulations

• § Computer & information technology division:

This department gives the software and hardware supports to different departments of the bank. As Dhaka Bank is engaged in online banking, the role of IT is very crucial for the bank. This department is the most active department of DBL where employees always stand by to solve any problems in the system. The managers and executives of IT division work continuously to develop the total IT system of DBL so that it can be operated with ease, accuracy, and speed. Since its journey as commercial Bank in 1995 Dhaka Bank Limited has been laying great emphasis on the use of improved technology. It has gone to online operation system since 2003. And the new banking software Flex Cube is under process of installation. As a result the bank will able to give the services of international standards. In 2009 Dhaka Bank become a member of the EI Dorado inter bank fund transfer network which allows real time electronic fund transfer between customers of member banks. To achieve better economics of scale & efficiency in transaction processing the IT Division played a key role in the centralization of Trade Finance & Credit operations in 2009.

• § Credit division:

The borrowing capacity provided to an individual by the banking system, in the form of credit or a loan. The total bank credit the individual has is the sum of the borrowing capacity each lender bank provides to the individual. Credit Policy Committee is composed of the managing director, the general manager, the Chief Risk Officer and the assistant general manager responsible for credits. Committee meets every other week, evaluates the banks overall lending portfolio and determines principles and policies regarding portfolio management. Dhaka Bank Ltd.was rated by Credit Agency of Bangladesh Ltd. on the basis of audited Financial Statements as on December 31, 2009.The summary is presented below:

Credit Rating Agency of Bangladesh Ltd. has assigned A1 rating in the Long Term & ST-2 in the Short Term. In 2008 Credit Rating information & Services Ltd awarded A+ in the long term &ST-2 in the short term.

• § Operation division:

This is an integral and vital part of the bank. The services department ensures smooth operation and functioning within and between all the departments of DBL. It also provides continuous support to the core banking activities of DBL. The manager of services heads the department who formulates and manages various critical issues of the services function of DBL. He is followed by a group of executives who are the heads of various subsidiary divisions that operate within the services department. The services department is considered as the backbone of all other departments.

• § Finance & accounts division:

This is considered as the most powerful department of DBL. It keeps tracks of each and every transaction made within DBL Bangladesh. It is headed by manager of FCD who ensures that all the transactions are made according to rules and regulation of DBL group. Violation of such rules can bring serious consequences for the lawbreaker. The functions of FCD are briefly discussed below along with an organ gram of the department. § Audit & risk management division The Risk Management Division is responsible for measuring risks that the Bank might face in the course of its operations, developing corporate risk management policies and ensuring that risks remain within the limits in which the Bank prefers to bear such risks in line with its own strategic targets and risk appetite. The primary goal of risk management is to provide capital to businesses in line with their risks (economic capital), maximize risk-adjusted return and increase the added value. The risk management function consists of Market Risk, Credit Risk and Operational Risk Management Units. Bank Risk Committee, Asset-Liability Committee (ALCO), Credit Policy Committee, and Operational Risk Management Committee are the other risk management bodies. The committees are MANCOM ALCO. As per Bangladesh Bank instruction “BASEL Implementation Team” has been formed which will be responsible for proper implementation of BASEL capital adequacy guidelines in the Bank. The guidelines have been issued by Bangladesh Bank recently but the target date for implementation is 31^st December 2009.

Chapter -Three

Products & Services Of DBL

Different banking products and services are being offered exclusively to the Non Government Organizations and international projects in Bangladesh and its staff, both local and expatriate, based in Bangladesh. With the assistance of the Marketing Team, who have prior experience of serving diplomatic missions with other multinational banks, the Bank has tailored-made a list of products to address the NGO / International Organization’s unique banking requirements in Bangladesh. Dhaka Bank Limited is committed to developing and delivering to the corporate relationships total banking solutions while ensuring a level of service that exceeds customer expectations.

Retail Banking: In 2001 DBL. introduced its personal banking program responding to the market demand for a complete range of modern banking products & services. On 14^th July 2002, DBL launched a new product-Excel Account which is first of its kind in Bangladesh. Designed exclusively for the salaried executives, Excel Account offers a packaged solution to companies and organizations in processing their employees’ salaries and funding employees’ loans. In 2009, Dhaka Bank further consolidated its position as a leading bank in the country consumer banking arena.

Deposit Double:

Deposit Double is a time specified deposit scheme for individual clients where the deposited money will be doubled in 6 years. The key differentiators of the product will be:

• Amount of deposit – The minimum deposit will be BDT 50,000.00 (either singly or jointly). The client will have the option of depositing any amount in multiples of BDT 10,000 subject to a maximum of taka 20, 00,000 in a single name and taka 35, 00,000 in joint name.
• Tenure of the scheme – The tenure of the scheme will be 6 years.
• Premature encashment – If any client chooses to withdraw the deposit before the tenure, then she/he will only be entitled to prevailing interest rate on savings account in addition to the initial deposit. However, withdrawal of the deposited amount before one year will not earn any interest to the depositor(s).
• OD facility against deposit – Clients will have the option of taking advance up to 90% of the initial deposited amount. The lending rate will be tied up with the interest rate offered on the deposit.

• Govt. charges – The matured value is subject to taxes and other Govt. levies during the tenure of the deposit.

Deposit Pension Scheme: Dhaka Bank is well poised to be the leading Personal Banking business amongst the local private banks. Bank’s conscious efforts in brand building, introducing and supporting new packaged products, developing PB organization along with non-traditional delivery channels have resulted in good brand awareness amongst its chosen target markets. Installment based savings schemes are a major category of saving instruments amongst mid to upper middle-income urban population. DPS is an installment based savings scheme (Deposit Pension Scheme) of Dhaka Bank for individual clients. The key differentiators of the product will be

• Amount of monthly deposit – The scheme offers the clients the flexibility of tailoring the amount of monthly deposit based on his monthly cash flow position. The minimum monthly deposit will be BDT 500.00 The client will have the option of depositing any amount in multiples of BDT 500.00 subject to a maximum of taka 20,000.
• Flexible tenor of the scheme– The client has flexibility of deciding on the tenor of the scheme in-terms of number of months. However, the minimum tenor would be 48 months and the maximum would be 144 months.
• Flexibility to open any number of DPS account– A client can open maximum five DPS accounts in client’s name, in his/her spouse’s name or in the name of his/her children or in joint names with any of his/her family members.
• Bonus point – if the client continues the scheme up-to maturity then at maturity, the client will be awarded a bonus 1% on the total deposit amount. However, to qualify for the bonus point, client may default in paying maximum 2 installments within the tenure of the DPS.
• Premature encashment – if any client closes the deposit account before one year, s/he will not be entitled to any interest. Account running more than a year will be eligible for the prevailing interest offered in the savings account.
• Late payment fee – Clients failing to deposit any installment will pay 5% late payment fee on the deposit installment amount as late payment fee, which will be realized at the time of depositing the next deposit Installment.
• Payment through account – Clients will have to open an account with Dhaka Bank Limited and a standing instruction will be executed for auto-debit to effect the monthly installment.
• OD facility against DPS – Clients will have the option of taking advance up to 90% of the deposited amount at the time of application. However, to be eligible for the OD facility, the account must be at least 2 years old or the minimum ticket size of the advance will be taka 20,000.00.

Restrictions & client eligibility:

• Any Bangladeshi citizen attaining 18 years of age will be eligible to avail this product by opening an account in any of the branches of DBL. Branch will ensure compliance with account opening formalities.
• A minor operated by the legal guardian may also open the account.
• The tenor and the deposit amount agreed by the applicant and accepted by the Bank at the time of opening the account cannot be changed afterwards.

Closure of account: The account will immediately cease to operate in case of the following:

• Death of the account holder and Failure to pay 5 consecutive installment

Settlement of the account:  Documentation – In order to open the account, the account holder will execute the following documentation:

• Fulfilling account opening formalities
• Filling up the DPS application form
• 2 copy pass port size photograph of the applicant
• 1 copy passport size photograph of the nominee attested by the applicant
• Product name Special Deposit Scheme:
• Product features 

• Opening an account  Clients must have or open a savings account through which initial deposit will be collected. The monthly interest accrued on the deposit will be disbursed to the client through this savings/current account.
• Deposit mode  The depositor(s) will have the option of making the initial deposit to the new / existing savings account in cash or through an account payee cheque.
• Interest payout mode  Interest payout mode should be transfer to savings account.
• Interest payout frequency  Interest payout frequency should be monthly.
• Renewal / redemption instruction Maturity / renewal instruction should only be “Renew principal and redeem interest” or redeem interest & principal
• Closure of account The account will immediately cease to operate in case of death of the depositor
• Settlement of account  The account will be settled in line with the instructions laid down in the account opening forms in case of death of the accountholder.
• Premature encashment If any client chooses to withdraw the deposit before the tenure, then s/he will only be entitled to prevailing interest rate on savings account in addition to the initial deposit. However, withdrawal of the deposited amount before one year will not earn any interest to the depositor(s). Amount already paid to the clients monthly along with the tax should be adjusted accordingly.
• Settlement of pre-mature encashment 

• OD facility against deposit Clients will have the option of taking advance up to 90% of the deposited amount at the time of application. The prevailing lending rate will be affected against the advance.
• Documentation In order to open the account, the account holder will execute the following documentation:
  • Fulfilling account opening formalities
  • Filling up the SDS application form
  • 1 copy passport size photograph of the applicant
  • 1 copy passport size photograph of the nominee attested by the applicant
• Restrictions &client eligibility
  • Any Bangladeshi citizen attaining 18 years of age will be eligible to avail this product by opening an account in any of the branches of DBL. Branch will ensure compliance with account opening formalities.
  • A minor operated by the legal guardian may also open the account.
  • The deposited amount and the tenure agreed by the applicant and accepted by the bank at the time of opening the account cannot be changed afterwards.

Excel Account: Excel Account has been tailored in the manner of having both asset and liability characteristics blended into a single product for salaried individuals employed in any institution. On virtue of this product, prospective clients receive a credit interest based on the credit balance available in the account. The clients will also be required to pay the bank OD interest if the balance of the account becomes overdraft. What is the maximum tenure for availing this facility? The tenure of the account will be for 3 years maximum, having renewal facility for every year until the client resigns from the institution. Is there an OD facility against the Excel account? OD facility is a pre-embedded feature of the Excel Account. An OD limit is given to the account up to the amount of the salary of the individual employed at the institution. What is the offered Interest rate? For a credit balance this facility provides an interest rate of 4.5% p.a. based on the daily balance of the account. If in the case, the account is utilized for an OD limit, the debit balance will be subject to a debit interest rate of 16% p.a. What other features are available with the Excel account? At current, the Excel account is featured with ATM Facilities. Very soon, Dhaka Bank Ltd. will be offering debit card facility with Excel Account. Pre-requisites for availing the Excel account:

• The institution to which the individual is employed must have salary account maintained with the bank.
• The institution must have a corporate guarantee maintained with the bank.

Govt. charges: The account is subject to taxes and other Govt. levies during the tenure of the deposit.  Salary Account: Dhaka Bank has launched a special package of savings account for employees belonging to institutions with which Dhaka Bank has a corporate agreement. With this package salaried employees of these institutions enjoy interest on a daily balance. The key features of the salary account are:

• Interest to be calculated on a daily balance basis
• No periodic service charge
• ATM card facility
• Credit card facility
• On-line banking facility
• Internet & SMS banking facility

Income Unlimited:

The management of Dhaka Bank Limited is pleased to launch Special Deposit Scheme, a new liability product on May 04, 2005.

• §  Product Name– Income unlimited
• Products features

• § Opening an account – Clients must have or open a savings account through which initial deposit will be collected. The monthly interest accrued on the deposit will be disbursed to the client through this savings/current account.
• § Deposit mode – The depositor(s) will have the option of making the initial deposit to the new / existing savings account in cash or through an account payee cheque.
• § Interest payout mode – Interest payout mode should be transfer to savings account.
• § Interest payout frequency – Interest payout frequency should be monthly.
• § Renewal / redemption instruction – Maturity / renewal instruction should only be “Renew principal and redeem interest” or redeem interest & principal
• § Closure of account – The account will immediately cease to operate in case of death of the depositor
• § Settlement of account – The account will be settled in line with the instructions laid down in the account opening forms in case of death of the accountholder.
• § Premature encashment – If any client chooses to withdraw the deposit before the tenure, then s/he will only be entitled to prevailing interest rate on savings account in addition to the initial deposit. However, withdrawal of the deposited amount before one year will not earn any interest to the depositor(s). Amount already paid to the clients monthly along with the tax should be adjusted accordingly.
• § Settlement of pre-mature encashment

• § OD facility against deposit – Clients will have the option of taking advance up to 90% of the deposited amount at the time of application. The prevailing lending rate will be affected against the advance.
• § Documentation – In order to open the account, the account holder will execute the following documentation:

ü  Fulfilling account opening formalities ü  Filling up the SDS application form ü  1 copy passport size photograph of the applicant ü  1 copy passport size photograph of the nominee attested by the applicant Restrictions & client eligibility: Any Bangladeshi citizen attaining 18 years of age will be eligible to avail this product by opening an account in any of the branches of DBL. Branch will ensure compliance with account opening formalities. ü  A minor operated by the legal guardian may also open the account. ü  The deposited amount and the tenure agreed by the applicant and accepted by the bank at the time of opening the account cannot be changed afterwards. Smart Plant: What is Smart Plant? Smart Plant offers you to multiply your initial cash to 10 times in 6 years. You are required to deposit at least taka 10,000 or multiple of it to avail the opportunity. In single name you can deposit maximum taka 50, 00,000. Dhaka Bank shall contribute 4 times of your deposited amount to build up a fund for issuance of Smart Plant. What is the maturity period of Smart Plant? Maturity period of the Smart Plant is 6 years. What would be the matured value? The total Smart Plant amount (your deposit + bank contribution) will double in 6 years. For example; if you deposit taka 10,000, bank shall contribute taka 40,000, altogether the Smart Plant amount will be taka 50,000. On maturity (after 6 years) the Smart Plant amount will be taka 1,00,000¹. How can I repay bank contribution? You will repay the bank contribution amount in 72 equal installments. After repayment of all installments the matured value will be credited in your savings account¹. Is there any late payment fee on equal monthly installment? If you fail to pay the installment within the due date, a late payment fee of 2% per month of the installment amount will be charged. Is there any age limit for availing this opportunity? If you are a Bangladeshi with an age more than 18 years and not exceeding 54 years, you can avail Smart Plant. Can I discontinue Smart Plant? Yes, you can discontinue the Smart Plant subject to the following.

• Before the 1st year, no interest
• After 1st year, prevailing savings rate.
• Closing fee is 1% of your deposited amount or subject to minimum Taka 500.

Do I require opening a Savings Account? Yes you are required to open a Savings account or Smart account to maintain the Smart Plant. Can I take loan against my Smart Plant contribution? You will have the option of taking advance up to 90% of your contributed amount. The lending rate will be tied up with the interest rate offered on the deposit. What will happen if I die before Smart Plant maturity? Your nominee shall get matured value of Smart Plant if you demise prematurely before completing Smart Plant period. However, death from self-inflicted injury, suicide during the first year of insurance coverage, AIDS and HIV related disease, abuse of alcohol or drugs, war, or riot, or civil commotion, illegal act/criminal activity, death due to any reason within the first 3 months of coverage except for accidental death, natural disaster viz. earth quake, tsunami etc. Gift Cheque: Dhaka Bank has recently refurbished its gift Cheque. The features of the gift cheque are as follows:

• Can be encashed at any branch even if the encashing branch is not the issuing branch of the instrument.
• Interest will be applicable only if the instrument is encashed after three months from the date of issue in the following manner:
  1. No Interest if encashed before three months from the date of issue.
  2. 6% if encashed after three months and before twelve months from the date of issue.
  3. 7.25% if encashed after twelve months from the date of issue.
• The gift cheque may be encashed using either of the two modes, (a) cash or (b) fund transfer. Encashment of gift cheque is not allowed over clearing.
• No service charge is applicable
• Dhaka Bank Limited issues gift cheques in three denominations of tk.100, tk.500 and tk.1000

Personal Loan: As part of establishing a Retail Banking franchise of Dhaka Bank Limited, the bank has successfully launched Personal Loan. The product is a term financing facility to individuals to aid them in their purchases of consumer durables or services. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equated monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months.  Target market:

1. Salaried employees of institutions in the Dhaka, Chittagong and Sylhet markets.
2. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
3. Businessmen who are permanent residents of Dhaka, Chittagong and Sylhet metropolis with at least 3 years of continued operation in the line of business.

Restrictions & client eligibility:

1. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 21 years and the maximum age 57 years with a minimum verified Gross Family Monthly Income of BDT 10,000.

 Car Loan: As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Car Loan. The product is a term financing facility to individuals to aid them in their pursuit of has a car of their dream. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 60 months. In case of brand new cars the loan tenure will be maximum 72 months. Target market:

1. Salaried employees of institutions in the Dhaka, Chittagong and Sylhet markets.
2. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
3. Businessmen who are permanent residents of Dhaka, Chittagong and Sylhet metropolis with at least 3 years of continued operation in the line of business.

Restrictions & client eligibility:

• Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 45,000.

Vacation Loan:

Like the Car Loan, Vacation Loan of Dhaka Bank Limited is a term financing facility to individuals to aid them in their pursuit of spending a vacation in the country or abroad. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months. Targeted market : The target market for personal loan mainly comprises of the following categories –

1. Salaried employees of institutions in the Dhaka, Chittagong, Sylhet markets and where Dhaka Bank operates.
2. Professionals who are self employed and have at-least 3 years of independent practice in the area of profession.
3. Businessmen who are permanent residents of cities where Dhaka Bank operates with at least 3 years of continued operation in the line of business.

Restrictions & client eligibility : Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 21 years and the maximum age 57 years with a minimum verified Gross Family Monthly Income of BDT 10,000.

 Home Loan:

The product is a term financing facility to individuals to aid them in their purchases of apartment or house or construction of house. The facility will become affordable to the clients as the repayment is done through fixed installment as commonly known as EMI

(equal monthly installment) across the facility period. Depending on the size of the loan, the maximum period of the loan would be 180 months (15 years).

Target market: The target market for Home Loan will be mainly focused in Dhaka and Chittagong. However, strong recommendation from branches operating in other areas will also be facilitated with the major concentration on the following category –

• Salaried employees of institutions with minimum 3 years continuous service
• Self-employed professionals who are self employed and have at-least 5 years of independent practice in the area of profession. (Example: Doctors, Dentists, Engineers, Chartered Accountants, Architects who are members of their professional institutes.)
• Businessmen who are permanent residents of Dhaka, Narayangonj, Chittagong and Sylhet with at least 5 years of continued operation in the line of business.

Restrictions & client eligibility:

1. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below: The minimum age for any borrower will be 21 years with a maximum age 50 years (at the time of application). The minimum verified Gross Family Monthly Income of the applicant should be BDT40; 000.The family income will include only the income of the applicant and spouse.
2. The maximum permitted Equal Monthly Installment (EMI) paid by the borrower should be no more than the 33% of the Family Monthly Disposable Income (FMDI) of the borrower per month.
3. In calculating FMDI, we propose to use the following industry standard formula: Proven income of obligor PLUS proven income of spouse (if the spouse is working) LESS current monthly loan obligations (if any), other monthly fixed obligations (rent, children’s education, monthly food expenses, etc).

4. The maximum loan tenor for different amount of loan is proposed to be as following:

5. * The tenor will be decided at the discretion of the management.

 Any Purpose Loan: Any Purpose Loan is a term financing facility to individuals to meet their immediate requirements. The facility becomes affordable to the clients as the repayment is done through fixed installments commonly known as EMI (Equal Monthly Installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months. This facility is available for Salaried Employees, Self Employed / Professionals or Businessmen. Loans are restricted to Bangladeshi nationals within 21 years to 57 years age limit with a minimum verified Gross Family Monthly Income of BDT 10,000. The amount of loan may vary from BDT 25,000 to 5, 00,000 depending on the applicant’s requirement and repayment capability.

Click here to find your nearest branch.

 Other Retail Banking Products:

• Current, Savings & FD accounts
• 24 hours banking ATM card: In order to add value to product & services DBL. has reduced the annual fee of the card from taka. 1500 to taka. 500 per year. Clients can now settle BTTB & Grameen phone bills using ATM card.
• DBL Credit card: The cash advance limit has been increased to 50% from 25%. The unique feature of this service is to deliver the Credit Card within only 7 days against security; and for unsecured card it only takes 10 days. DBL. also offer spouse Card absolutely free of cost.
• Any branch banking and phone banking (absolutely free of cost).
• Foreign currency accounts (NFCD & RFCD).

 Corporate Banking: Corporate Banking business was performed fairly well despite a sluggish credit demand in the market. This year priority has been given to expand business in low risk sectors. Besides we have designed a comprehensive risk management system to monitor and control our asset quality. Letter of Credit, Guarantee, Import & Export Finance, Syndicate Loan, Project Financing, Leasing, Working Capital Financing etc. all are Corporate Banking Products.

Securitization Of Assets:

A powerful and effective means of generating funds for a certain category of institutions, securitization of assets is still in its infancy in the need however for such a service is great and there is a lot of support from multilateral financial institutions, such as the World Bank and the Asian Development Bank, for such activities to be developed further in this country. Dhaka Bank intends to take up this challenge and play a significant role in ensuring that securitization of assets becomes a normal part of the range of financial instruments available for organizations who can count on a steady, but piecemeal, flow of revenue and want to translate this stream into cash resources with which to carry out further lending activities to new customers. Some practical issues still need to be settled such as those concerning pricing, or the legal framework, but it is expected that, as Dhaka Bank and other institutions pursue more such securitization activities these will be resolved.

 Finance & Advisory Services:

Given the needs of its large and varied base of corporate clients Dhaka Bank will be positioning itself to provide investment banking advisory services. These could cover a whole spectrum of activities such as guidance on means of raising finance from the local stock markets, mergers and acquisitions, valuations, reconstructions of distressed companies and other expert knowledge based advice. By this means Dhaka Bank hopes to play the role of strategic counselor to blue-chip Bangladesh companies and then move from the level of advice to possible implementation of solutions to complex financing problems that may arise from time to time.

 Syndication Of Fund:

There has been a surge in the number of syndication deals closed in the last few years. 2004 was an exceptionally good year for syndicated deals for the local commercial banks also for the foreign banks. The total number of syndications in 2004 exceeded 10 totaling over tk. 10 billion. This rise in the number of syndications can be primarily attributed to the prudential lending guidelines of the Bangladesh Bank. A commercial bank may provide funded facilities up to a maximum of 15% of its equity. Due to this reason, projects with sizeable costs need to approach more than one bank for their debt requirements and therefore the demand for syndications exist. Credit risk diversification has led many international companies to introduce credit derivatives that are actively being traded. Securitization of assets is one such credit risk derivative that allows Financial institutions to diversify their portfolios. In 2009 due to slow investment in the state of global economic meltdown in the whole world. Therefore, investors adopted a go-slow strategy to initiate new ventures, which subsequently deters the credit growth in project financing. At Dhaka Bank Ltd.the syndication & structured finance unit was setup in October 2004.The unit has successfully closed 14 syndicated deals till the year 2009.This year DBL has arranged 2 syndication deals for a total amount of BDT 1,535.00 million. Deposit of the economic slowdown in the year 2009, the activities of the team ended on high note as we have been able to close 2 syndicated deals as the Lead Bank & 7 deals as participant with other banks. Small & Medium Enterprises: Dhaka Bank has come forward to extend its services towards Micro and Small & Medium Enterprises. Since inception, the Dhaka Bank has held socio-economic development in high esteem and was among the first to recognize the potentials of SMEs. Dhaka Bank pursues & tried to perfect through out 2008 has been significally applied in 2009 in lending various fund & non fund based loans & advances to a wide array of customers through existing as well as a no. of new SME Branch & Service Centers. The Bank was quite optimistic about surpassing the portfolio of 2008.The appetite of investors for borrowed funds seems to be growing again & Banks network too is expected to be expanded through opening of another 6 to 7 SME Branch &Service centers across the country by the end of 2009.Signing of a new refinancing deal on “Solar Energy”, Solar panel assembling plant & ETP with Bangladesh Bank is another major reason behind this optimism. Dhaka bank’s involvement : Recognizing the SME segment’s value additions and employment generation capabilities quite early, the Bank has pioneered SME financing in Bangladesh in 2003, focusing on stimulating the manufacturing sector and actively promoting trading and service businesses. The SME unit has used the year 2006 diligently in building its capabilities and has furthered its portfolio to address the needs of small enterprise with a portfolio growth of 2000% compared to year-end 2005. Story of a successful branch in SME financing : The bank started branch operations at Belk chi Sirajgonj in April 2003. Prior to the bank’s intervention, the weaving community did not have the financial strength to stock their products till “Eid ul Fitr” when the annual sale takes place. Traders were taking advantage to the situation by buying up entire productions at low prices and liquidating stocks just before “Eid”. With financial services from Dhaka Bank Limited, the weavers have converted to power looms, significantly increased profitability and reduced the involvement of middlemen. They are now working on institutionalizing the learning and applying them in other areas across Bangladesh, particularly in textiles, light engineering and other manufacturing clusters. Already we have identified several clusters and are working on improving access to finance within these clusters. Services Of DBL:   Personal Banking: Amongst Private Sector bank’s, Dhaka Bank has already made its mark in the personal banking segment. The promotions like “Baishakhi Offer”, a strategic tie up with Electra International Limited, distributor of Samsung brand products, and “Freeze the Summer Campaign” a strategic tie-up with Esquire Electronics Limited, distributor of Sharp/General Brand electrical appliances saw Dhaka Bank to experience more than a reasonable growth on the personal banking business in 2008. Corporate Banking: Providing a tailored solution is the essence of our Corporate Banking services. Dhaka Bank recognizes that corporate customers’ needs vary from one to another and a customized solution is critical for the success of their business. Dhaka Bank offers a full range of tailored advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the right solution. You will find top-class skills and in-depth knowledge of market trends in our corporate Banking specialists, speedy approvals and efficient processing fully satisfying your requirements – altogether a rewarding experience. Their experience in handling Corporate Banking business covers a wide span of businesses and industries. You can leverage on our expertise in the following sectors particularly: Telecom, media and technology Textile, ready made garments Edible oil, consumer and diversified industries Shipping, ship breaking, steel and engineering Energy, chemicals and pharmaceuticals Cement and construction Financial institutions Floating of public issues: The bank assists companies to underwrite public issues. Dhaka Bank has successfully participated in a number of issues. Loan syndication: DBL participates in a number of loan syndication arrangements involving foreign investment has been highly acclaimed. The projects we have handled as the lead arranger or co-arranger with other banks and financial institutions include production and export oriented ventures in power generation, cement production, food processing and a large undertaking in leisure and amusement. Islamic Banking: Dhaka Bank Limited offers Shariah based Islamic Banking Services to its clients. The bank opened its First Islamic Banking Branch on July 02, 2003 at Motijheel Commercial Area, Dhaka. The second Islamic Banking branch of the bank commenced its operation at Agra bad Commercial Area, Chittagong on May 22, 2004.Dhaka Bank Limited is a provider of on line banking services and any of its clients may avail Islamic Banking services through any of the branches of the bank across the country. Dhaka Bank Islamic Banking Branches offer fully Shariah based, Interest free, Profit-Loss Sharing Banking Services. Dhaka Bank Shariah Council is closely monitoring its activities. Besides, Dhaka Bank is an active member of Islamic Banking Consultative Forum, Dhaka and Central Shariah Board of Bangladesh. Capital Market Services: Capital Market operation besides investment in treasury bills, prize bonds and other Government securities constitute the investment basket of Dhaka Bank Limited. Interest rate cut on bank deposits and government savings instruments has contributed to significant surge on the stock markets in the second half of 2004, which creates opportunities for the Bank in terms of capital market operations. The Bank is a member of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Capital Market Division conducted a total trade of tk.2, 045 million against tk.1, 164 million in 2005. Gross Operating profit from Capital Market Services Division is tk.39.80 million   against tk.5 million in 2005. ATM Card Services: Features:

• Cash withdrawals – up to tk.1 lac per day
• Utility payments – T&T, Mobile phones, DESA, etc.
• Multi-account access
• Fund transfers
• Mini statements
• PIN change

Credit Card Services: Get it in just 7 days, or free! Dhaka Bank Limited brings you your everyday credit card in the shortest possible time. We recognize that you need your card every day. That is why we have developed processes to guarantee delivery of your card in just 7 days when you apply for a fully secured card; for an unsecured card it will be ready in just 10 days. Otherwise we will give you the card free – the subscription fee completely waived! What you can do with your Dhaka Bank credit card: Everything you would expect from a credit card. You can use it at all the merchant locations that display the Vanik Card sticker. That’s not all. You can also use it at all the locations that display the card sticker. And that’s a whopping 1,700 merchants and more than 50 products and services. What’s more, we are always increasing our merchant locations. An updated list is available from our card centre. Free spouse card: Your spouse needs a card too for everyday use. That is why we offer a card to your spouse absolutely free. Your spouse can enjoy the same facilities as you do. So, you won’t have to worry about whether either of you are carrying enough cash. Convenience: Unlike other cards, all branches of Dhaka Bank Ltd. can accept your bill payments and handle your card service requests. You may open an account as well with any of these branches to conduct all your banking and card service requirements under one roof. Flexible repayment options: Dhaka Bank credit card offers you credit facility absolutely free up to a maximum of 45 days. You get 15 days time from the date of statement to repay your dues. You can pay in full within 15 days (and save money; no interest accrued, no payout) or in part. The minimum amount required to pay is 1/12th of the total amount or taka. 200 (whichever is higher). The revolving credit line of your card allows you to select payment terms to suit your other financial commitments. Quick replacement: If card has been lost or stolen, a replacement will be sent to the client within a couple of days. But remember to report the loss as soon as you have detected it. Once reported, there will be no liability on fraudulent.  Locker Services: A client could use the locker facility of Dhaka Bank Limited and thus have the option of covering your valuables against any unfortunate incident. DBL offer security to our locker service as afforded to the Bank’s own property at a very competitive price. DBL would be at your service from Saturday through Thursday from 9:00 am to 4:00 pm. Lockers are available at Gulshan, Banani, Dhanmondi, Uttara, CDA Avenue & Cox’s Bazar Branch. Online Banking Services: Dhaka Bank Limited introduces Net Banking and intends to maintain the lead with enhanced facilities through this media. Client can get access to real time account information through the Internet. Transfer money from his/her account, utility bill payment and more. Through on–line banking services, clients can deposit to and withdraw from his/her account held with a particular branch up to a limit of taka: 10,000.00 through any branch of Dhaka Bank Limited Internet Banking Services: Through Internet banking the client  can  access the  account to  view  and  print  the  balance account  statement for  last  20 (twenty)  transactions. Small & Medium Enterprise (SME): Dhaka Bank has come forward to extend its services towards Micro and Small & Medium Enterprises. Since inception, the Dhaka Bank has held socio-economic development in high esteem and was among the first to recognize the potentials of SMEs. Dhaka Bank’s involvement: Recognizing the SME segment’s value additions and employment generation capabilities quite early, the Bank has pioneered SME financing in Bangladesh in 2003, focusing on stimulating the manufacturing sector and actively promoting trading and service businesses. The SME unit has used the year 2006 diligently in building its capabilities and has furthered its portfolio to address the needs of small enterprise with a portfolio growth of 2000% compared to year end 2005. Story of a successful branch in SME financing: The bank started branch operations at Belk chi Sirajgonj in April 2003. Prior to the bank’s intervention, the weaving community did not have the financial strength to stock their products till “Eid-ul-Fitr” when the annual sale takes place. Traders were taking advantage to the situation by buying up entire productions at low prices and liquidating stocks just before “Eid”. With financial services from Dhaka Bank Limited, the weavers have converted to power looms, significantly increased profitability and reduced the involvement of middlemen.

They are now working on institutionalizing the learning and applying them in other areas across Bangladesh, particularly in textiles, light engineering and other manufacturing clusters. Already we have identified several clusters and are working on improving.  Savings Bundle Product: Choose the right key: Dhaka Bank Saving Bundle Product is the first of its kind in Bangladesh. A unique blend of all flexibilities of a current account and provision high interest on daily balance and monthly interest paid savings account in three schemes, namely-

• Dhaka Bank Silver Account
• Dhaka Bank Gold Account
• Dhaka Bank Platinum Account

Dhaka Bank Savings Bundle product is another landmark to our commitment – Excellence in Banking Key features Account opening balance: You have to deposit taka 30,000/ for Silver Account taka 50,000/ for Gold Account and taka 1, 00,000/ for Platinum Account. High interest on daily balance: You will get high Interest on daily balance, 7% in Silver account 7.5% in Gold account and 8.5%. Interest calculation & payment: Interest will be calculated on daily balance and paid at the end of the month. Interest forfeited: If the day end balance falls below minimum balance i.e. taka 30.000/- in Silver Account, taka 50,000/- in Gold Account & taka 1, 00,000/- in Platinum Account, you will lose your interest on that day and if your monthly withdrawal is above 4 in Silver Account, 8 in Gold Account & 12 in Platinum Account then you will lose your interest on that month. Other benefits: Customer will get the following benefits for opening any of the above account

• Lifetime annual fee free ATM card
• Lifetime annual fee free Credit card
• 0.5% less interest on retail loan
• Free cheque book i.e. 50 leaves in Silver Account, 100 leaves in Gold Account & 150 leaves in Platinum Account.
• Free SMS & Internet Banking

Who can apply: If you are a salaried individuals & professionals having a minimum monthly income of taka 30,000/- can open a Silver Account with any branch of Dhaka Bank. If you are a salaried individuals professionals & entrepreneurs having a minimum monthly income of taka 75,000/- can open a Gold Account with any branch of Dhaka Bank. If you are a salaried individuals professionals & entrepreneurs having a minimum monthly income of taka 1, 50,000/- can open a Platinum Account with any branch of Dhaka Bank. You can also open the account jointly. Required documentation: To open the account you have to submit national ID or passport as photo ID with your recent 2 copy pp size color photo and a pp size color photo of nominee. Besides this, you have to submit the following if you want to get the credit card.

• Salary certificate for salaried individuals
• Last six months bank statement
• TIN certificate

Yearly fee: An annual fee will be charge at the time of account opening day and the amount is taka 2500/- for Silver Account taka 3500/- for Gold Account & taka 5000/- for Platinum Account. How to open the account: If you are a salaried individuals or professionals or entrepreneurs and all you have as mentioned you can open an account with any branch of Dhaka Bank.

Chapter- 4

Functions Of The General Banking Division

The general banking division deals with several functions

1. Operating customer service
2. Management of cash
3. Remittance of funds
4. Operation relating to clearing
5. Management of deposit
6. Maintaining accounts
7. Preparing balance sheet & other statements
8. Corresponding to different institutions
9. Maintaining of Accounts
10. Internal control & internal check

The above mentioned functions are briefly described as follows: Operating Customer Service Department: From this department all sort of necessary services are provided according to the requirement of the customer. Now a days the service is most talked about matter in banking and other customer related financial involvement. The basic difference between a public and private institution is seems to be its customer handling. The private institutions are more customers related to the public one. For this the customers are likely to feel comfort to make operation with the private institution that those of public. Functions of the general banking department: The services provided to the customer from this department are as follows:

1. Opening of account
2. Issuance of check book
3. Issuance of certificate
4. Issuance of pay order
5. Online money transfer
6. Providing of accounts balance
7. Other information relating to banking
8. Closing of account

 Opening Of Account: Bank is a financial intermediary, which mobilizes fund from surplus unit and deploy it to deficit unit. Surplus unit means the people who have surplus money and willingness to save. Deficit unit means the people who need money for industry, trade, business, or for personal use but don’t have sufficient money of their own for such purposes. Bank mobilizes the fund by accepting deposits from depositors and allocates the fund by providing loan to borrower. The relationship between a banker and his customer begins with the opening of an account by the banker in the name of the customer. Banker solicits deposits from the public of different walks of life and having different financial status. Accepting deposits is one of the main functions of commercial banks. In DBL various types of account are offered to various customers.

Current Deposit Account:

General features: a)      Businessmen and companies are the main customer of this product. b)      Bank does not pay any interest to CD account holders. c)      There is no restriction on the number and the amount of withdrawals from a current account. d)     Service charge and incidental charges are recovered from the depositors since the bank makes payment and collect the bills, drafts, cheques, for any number of times daily. e)      The bank through current account grants loans and advances to the customers. f)       In practice of ABBL maintain a minimum balance of tk.5000.

 Savings Deposit Account:

General features: As per Bangladesh Bank instruction 90% of SB deposits are treated as time liability and 10% of it as demand liability a)      Individuals for saving purpose open this type of account. b)      Interest is paid on this account. DBL offers 6.50% rate of interest for Savings A/C. c)      Generally, bank requires a 7-day prior notice if the total amount of withdrawals on any date exceeds 25% of the balance of the account. d)     But in practice there is no restriction on drawing money from savings account. Any time holders may draw money of any amount without prior notice. e)      Only two withdrawals are permitted per week. If more than two withdrawals are made in a week, no interest will be paid on rest amount for that month. f)       Generally householders, individuals and other small-scale savers are the clients of this account. g)      Minimum balance of tk.1000 is to be maintained. h)      Interest will be counted on the minimum balance from the date 1-6 of a month. i)        No service charges are charged as it is an interest bearing account. Short Term Deposit (STD): General features:

1.  Customers deposited money in this type of account for a shorter period of time.
2. STD account can be treated as semi-term deposit.
3.  STD should be kept for at least seven days to get interest.
4.  The interest offered for STD is less than that of savings deposit.
5. Volume of STD account is generally high. In DBL, various big companies, organizations, Government departments keep money in STD accounts.
6.  Frequent withdrawal is discouraged and requires prior notice.

 Time Deposit Account:

This branch maintains a separate section for maintaining Time Deposit account. FDR is an important factor for the bank and volume of FDR determines the investment base of the bank.  Fixed Deposit Receipt (FDR): General features:

1. Popularly it is known as Fixed Deposit Receipt (FDR). Time deposits are made with the bank for a fixed period of time.
2. The bank need not to maintain cash reserves against these types of deposits and therefore, the bank offers high rate of interest on such type deposits.

Opening of Fixed Deposit account:

1. The depositor has to fill an application form.
2. In case of a deposit in joint name, DBL also takes the instructions regarding payment of money on maturity of the deposit.
3. The banker takes the specimen signatures of the depositor(s).
4. Necessary postings are given on the flex cube software.
5. An FDR is then issued to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest & the date on which the deposit will fall due for payment.

Payment of interest: Usually FDR payment is made on maturity. DBL calculates interest at each maturity date and provision is made on that “Interest Expense FDR account” is debited for the accrued interest. Premature encashment of FDR: In case of premature FDR, DBL allows only saving bank rate interest. Loss of FDR: If the instrument is lost from the possession of the holder, the holder is asked to fulfill the following requirements:

1. Party should inform the bank immediately;
2. Record a G.D in the nearest police station;
3. Furnish an indemnity bond ;
4. On fulfilling the above requirements a duplicate FDR is then issued to the customer by the bank.

Renewal of FDR:

1. FDR is automatically renewed within seven days after the date of its maturity if the holder doesn’t come to encash the instrument.
2. Renewal will be for the previously agreed maturity period.

Accounting entries for FDR:

General (For all types of accounts):

1. Account opening form must be properly filled-in.
2. Authorized specimen signature must be properly signed by each signatory along with necessary instructions.
3. Account should have proper instruction, introducer should have an account with DBL; introducer’s signature must be verified by an officer of DBL under full signature.
4. Initial Deposit should preferably be as per minimum requirement of DBL.
5. Each authorized signatory should fill-in the customer information details form separately.
6. Passport size color photograph (One copy of each signatory and two copies of nominee must be obtained – duly attested by the introducer for signatory and by the applicant for nominee
7. Letter of thanks should be given to the account holder to be mailed under registered post with A/D of courier.
8. On obtaining all documentation and formalities of the applicant, cheque books are to be issued upon request of the applicant.
9. Special instruction (if any) should be given in appropriate place. In case of company account, the special instruction is to be provided as per the Article of Association and the Memorandum of Association of the Company.
10. Photocopy of Passport of the authorized signatory should be obtained in case the   account is not a company account.
11. Registration no & VAT registration no. & date, trade license no. & date should be clearly specified for company and birth date for individuals wherever required in the CIF.
12. Thana and/or Upazilla code must be clearly specified in the CIF of the applicant and/or the authorized signatory of the account to be opened.
13. Transaction Profile of the account must be duly filled in and signed by the authorized signatories of the account to be opened.
14. Nominee declaration form must be duly filled in and signed accordingly for all nominees as specified in the account opening form for accounts opened other than company account. CIF should be duly filled in and signed by the nominee for all nominees specified in the account opening form.
15. Other necessary documentations & formalities to obtained / observed as specified by the bank from time to time.

In Case Of Foreign Currency Account:

1. Account opening form (application, nomination, declaration) duly filled in and signed
2. Photocopy of passport of its first 4 pages.
3. Photocopy of work permit (for RFCD account).
4. Any letter about service or its photocopy from the employer.
5. Citizenship certificate if available (for NFCD account).
6. Certificate of approval from relevant authority.
7. Two passport size photograph of the nominee duly attested by the account holder.
8. One passport size photograph of the applicant(s) duly attested be the introducer.

 In Case Of Proprietorship Account:

1. All general formalities & documentation should be adhered to as required for proprietorship accounts.
2. Attested photocopy of valid trade license to be obtained for Proprietorship accounts.

 In Case Of Partnership Account:

1. All general formalities & documentation should be adhered to as required for Partnership accounts.
2. Copy of notarized partnership deed certified be all the partners of registered partnership deed (registered with the Registrar of Joint Stock Companies and Firms) – duly certified by the Registrar of Joint Stock Companies and Firms.
3. Partnership resolution signed by all the partners to open account with Dhaka Bank Limited indicating the type of account and mode of operation.

 In Case Of Private / Public Limited Company Account:

1. All general formalities & documentation should be adhered to as required for Private/Public Limited company accounts.
2. Memorandum and Articles of Association – duly certified by the Registrar of Joint Stock Companies and Firms.
3. Certificate of Incorporation – duly certified by the Registrar of Joint Stock Companies and Firms.
4. Board Resolution – duly certified by the Chairman / Secretary of the Company.
5. FORM XII and Schedule X – duly certified by the Registrar of Joint Stock Companies and Firms.
6. Certificate of Commencement of Business-duly certified by the Registrar of Joint Stock Companies and Firms. (Only in case of Public Limited Company).

 In Case Of Club / Society:

1. Certified copy of registration certificate.
2. Certified copy of Charter / by-laws and Regulations / Constitution of the relevant organization.
3. Copy of Resolution of Managing Committee / Executive Committee-duly certified by the Chairman / Secretary.
4. List of Members of the Managing Committee / Executive Committee – duly certified by the Chairman / Secretary.

In Case Of Non-Government School / College / University / Madrasha / Muktab:

1. Certified copy of registration certificate.
2. Copy of resolution of Managing Committee / Governing Body authorizing opening and operation of account with DBL-duly certified by a Gazette Officer.
3. List of Members of the Managing Committee / Governing Body-duly certified by a Gazette Officer.

In Case Of Sector Corporations:

1. Certified copy of the relevant Presidential Order / Act of Parliament establishing the Corporation.
2. Resolution of Board of Directors / Competent Authority to open Account with DBL.
3. Certified list of Board of Directors (if any).

In Case Of Local Authorities / City Corporation etc:

1. Certified copy of Statute / any other Law by which the body is created and governed.
2. Resolution of Municipal Committee / Managing Body (if any) to open account with DBL – duly certified by the Chairman / Mayor / Competent Authority.
3. List of Members of such Committee / Body-duly certified by the Chairman / Mayor / Competent Authority.

Issuance Of Cheque Book: Issuance Of Fresh Cheque Book: An account holder can get a fresh cheque book only against requisition on the prescribed requisition slip attached with the cheque book issued earlier, after proper verification of the signature of the account holder. A new cheque book should be delivered to the account holder or his duly authorized representative. Cheque Book Issuing Process :    When Cheque Book Is Lost: Duplicate checkbook is issued only when an account holder applies to the bank with a letter of indemnity in the prescribed pro-forma agreeing to indemnify the bank for the lost checkbook. Fresh check book is then issued after verification of the signature of the account holder from the specimen signature card and on realization of required excise duty only with prior approval of manager of the branch. Cheque series number of the new checkbook is recorded in the register. Series number of lost checkbook should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment. Online Money Transfer: Because of online banking the customers of Dhaka Bank Limited can easily transfer their money from one branch to another. No hassle is there. Any one can deposit money from any branch of the bank to any account. Similarly, an account holder can withdraw money from any branch. But in case of money transfer from out side Dhaka division that is from one territory to other online charge is taken from the customer. Account Balance Inquiry: DBL sends account statement to its clients two times in a year. More over clients are provided whenever he/she wants to know Account Balance. But hence some security and privacy is maintained. No other person than the account holder is given the account balance.  Closing Of Account: The closing of an account may happen-

• If the customer is desirous to close the account
• If DBL finds that the account is inoperative for a long duration.
• If Garnishee Order is issued by the court on DBL.

Management Of Cash: Cash is the very vital sector for any bank. The proper management of this department entails overall effectiveness of any bank. This department is responsible for the following functions:

1. Receipt of deposit
2. Making payment to the customer
3. Management of vault of the branch

The above mention functions are described briefly below: Receipt Of Deposit   : This department receives deposit or funds from the customer, and the collection procedure as follows: ¤ At first the amounted is counted and if ok then verified the purity of the note paid if there is any confusion of the teller; ¤ If the cash notes are satisfactorily sound then the teller marked in color the amount in word over the deposit slip. ¤ At last the receiving officer/teller signed the deposit slip and by the sign of the authorized officer the deposit of fund finished in favor of a customer. ¤ Incase of receipt of clearing cheque the cheque is scrutinized at first whether the cheque is authenticated as per the NI Act. If satisfied then a crossing is marked so that this cheque never is encashed over the cash counter. ¤ Then the amounts is kept apparently deposited in the customers account and the cheque proceeds to the clearing house accordingly. Making Payment To The Customer: The payment is made to a customer only against a valued authentic cheque. The teller has to follow the following steps in making such payment. ž Receiving the cheque from the customer; ž Examining the cheque, in case of examination the teller is to be sure about the following questions.

1. Date of cheque is today’s or not; if it is predated then the date is with in 6 months from today;
2.  Amount is written in word and in figure and both is valued same;
3. Signature is installed and it is as it is the signature kept in the bank;
4. There is sufficient amount in the customer’s accounts for making payment;

ž If the teller is satisfied regarding the above questions, then he/she debits the respective party a/c for making payment. ž If it is a bearer cheque (A cheque where the bearer’s name is installed in stead of “self”/ “cash”) the signature is also taken for the record; ž Finally the “cash paid” seal is marked over the cheque leaf for the cancellation of the cheque after making the payment to the customer. Management Of The Vault: The cash department also mange the vault of the branch. In such a management the cash in charge of the branch necessary liquid money in the vault for the payment to the customer, in this regard there is specific guideline from the central bank for the limit of amount, and the guideline is: a. The bank is to maintain an at least 4% balance with the Bangladesh Bank on its total paid up capital; b. Limit of cash vault up to tk- 1.5 cores; c. Limit of an individual teller up to tk- 20 lacs; d. Limit of cash in transit up to tk- 75 lacs. So the cash department is to maintain a cash limit of tk- 2 core 45 lac as whole. The excess amount of a branch limit is to be proceeded to the account maintained with Bangladesh bank. Remittance Of Funds: Remittance of funds means transferring of fund through different instruments other than cheque. Remittance includes both inland and foreign remittance. In this section only the local remittance is described. The remittance of local funds is of two types:

1. Inward
2. Outward

 Outward Remittance:

The term “Outward Remittances” include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveler’s cheque but also includes payment against imports into Bangladesh & Local currency credited to non‑resident taka accounts of foreign banks or convertible taka account. Two forms are used for Outward Remittance of foreign currency such as: ‑ IMP Form:      All outward remittance on account of imports is done by this form T.M Form:      For all other outward remittances form T.M is used. Private Remittance: Family Remittance Facility: a) Foreign nationals working in Bangladesh with approval of the Government may remit through an authorized dealer 50% of salary & 100% of leave salary as also actual savings and admissible person benefits. No prior approval of bank is necessary for such remittance. b) Remittance of moderate amounts of foreign exchange for maintenance abroad of family members (spouse, children, parents) of Bangladesh nationals are allowed by Bangladesh Bank on written request supported by certificate from the Bangladesh mission in the concerned country.  Remittance Of Membership Fees/Registration Fees etc: Authorized dealer may remit without prior approval of Bangladesh Bank, membership fees of foreign professional and scientific institutions and fees for application registration, admission, examination (TOEFL, SAT, IELTS etc.) In connection with admission into foreign educational institutions on the basis of written application supported by demand notice/letter of the concerned institution. Education: Prior permission of Bangladesh Bank is not required for releasing foreign exchange in favor/on behalf of Bangladesh students studying abroad or willing to proceeds abroad for studies. Authorized dealers shall allow exchange facilities for this purpose according to the following drill:

1.     Application duly filled in by the student as per prescribed format of Bangladesh Bank.
2. Original and photocopy of admission letter issued by the concerned institution in favor of the student.
3.   Original and photocopy of estimate relating to annual tuition fee, board and lodging
4. Incidental expenses etc. issued by the concerned institutions.
5.   Attested copies of educational certificates of the applicant and
6.   Valid passport.

Travel: Private travel quota entitlement of Bangladesh nationals is set at US$3000/‑ per year for visit to countries other than SAARC member countries and Myanmar, Quota for SAARC member countries and Myanmar is US$1000/‑ for travel by air and US$500/‑for travel by overland route. Authorized dealers may release this travel quota in the form of foreign currency notes up to US$500/‑ or equivalent and balance exchange in the form of TCs or total quota in the form of TCs the annual quotas mentioned above are for adult passengers. Fore minors (Below 12 year in age) the applicable quota will be half the amount allowable to adults. Authorized dealers may release above travel quota without prior approval of Bangladesh Bank subject to observation and satisfaction of following points:

1. The intending traveler is a customer of the bank or is sufficiently well known to the AD Bank or the intending traveler has paid relevant Travel Tax. The intending traveler has a valid passport.
2. The bank should verify and satisfy itself that any foreign exchange released for an earlier travel was utilized with he journey being actually undertaken or was duly enchased unutilized.
3. The intending traveler is in possession of confirmed air ticket for journey to be undertaken and that the intended journey to be undertaken not later than two weeks after the date on which exchange is issued.
4. The amount releases is endorsed on the passport and air ticket of the traveler with indelible ink, with the signature and the name of this branch embossed in the passport and ticket.
5. In each case of release of foreign exchange for travel abroad, photocopies of first six pages of the passport s and the page recording endorsement of foreign exchange and photocopies of the pages of ticket showing name of the passenger, route and date of journey and endorsement of foreign exchange along with the relative T.M. form should be sent to Bangladesh Bank along with monthly returns.

 Health & Medical: Dhaka Bank Limited, local office without prior approval of Bangladesh Bank may release foreign exchange up to US$10,000/‑ for medical treatment abroad on the basis of the recommendation of the medical board set up the head directorate and the cost estimate of the foreign medical institution. Applications for release of exchange exceeding US$10,000/‑ should be forwarded along with supporting documents to Bangladesh Bank for prior approval. Seminars & Workshops: Without prior approval of Bangladesh Bank AD may release US$200/‑ per them and US$250/‑ per them to the private sector participants for attending seminars, conferences and workshops organized by recognized International bodies in SAARC member countries or Myanmar and in other countries respectively for the actual period of the seminar/workshop/conference to be held on this basis of invitation letters received in the names of the application or their employer institutional.  Foreign Nationals:

1. The Authorized dealers may issue foreign currency TCs to foreign nationals without any limit and foreign currency notes up to US$300/‑ or equivalent per person against surrender of equivalents amounts in foreign currencies. The TCs and foreign currency notes should however, be delivered only on production of ticket for a destination outside Bangladesh and the amount issued should be endorsed on the relative passports.
2.   Authorized dealers may allow recon version of unspent Taka funds of foreign tourists into foreign exchange on production of the encashment certificate of foreign currency. Recon version shall be allowed by the same AD with which the foreign currency was encashed earlier. AD should retain the original encashment certificate and relative forms where recon version exceeds US$5000/‑.

Remittance For Hajj: Authorized dealers may release foreign exchange to the intending pilgrims for performing Hajj as per instructions/circulars to be issued by the Bangladesh Bank each year.  Other Private Remittance: Applications for remittances by private individuals for purposes other than those mentioned above should be forwarded to Bangladesh Bank for consideration & approval after assessing the bonafide of the purpose of remittance on the basis of documentary evidence submitted by the applicant.  Official & Business Travel: Official Visit: For official or semi officials visits abroad by the officials of Govt., autonomous/semiautonomous institutions etc., Authorized dealers may release foreign exchange as per entitlements fixed by the Ministry of Finance from time to time, in such cases, the applicant for foreign exchange shall be required to submit the sanction letter and the competent authority’s order/notification/circular authorizing the travel.  Business Travel Quota For New Exporters: Up to US $6,000/‑ or equivalent may be issued by an AD without prior approval of Bangladesh Bank to a new exporter for business travel abroad, against recommendation letter from Export Promotion Bureau, bonafide requirement beyond US$6000/‑ is accommodated by Bangladesh Bank upon written request through an AD with supporting documents. Business Travel Quota For Importers & Non‑exporting Producers:

1. Subject to annual upper limit of US$5000/‑ importers are entitled to a business travel quota @ 1 % of their imports settled during the previous financial year.
2. Subject to annual upper limit of US$5000/‑ non exporting producers for the local markets are entitled to a business travel quota @1 % of their turnover of the proceeding financial year as declared in their tax returns.

The same business organization engaged in imports as well as production shall however; draw business travel quota entitlement only on one count.  Exporters’ Retention Quota: i) Merchandise exporters may retain up to 40% of realized FOB value of their exports in foreign currency accounts. However, for exports of goods having high import content (such as readymade garments, POL products including furnace oil bitumen, electronic goods etc.) the retention quota is 7.5% of the repatriated FOB value. Funds from these accounts can be used to meet bonafide business expenditure, such as business visits abroad, participation in export fairs and seminars, establishment and maintenance of office abroad, import of raw materials, machinery and spares etc. without prior approval of Bangladesh Bank. Exporters may at their option, retain the foreign currency in interest bearing renewable term deposit accounts with Authorized dealers in US Dollar, Pound Sterling DM or Japanese Yen with a minimum account of US$2000 or Pound 1500/ ii)  Service exporters (excluding indenting commission or agency commission of indenting house of buying house respectively) may retain 5% of their repatriated income in foreign currency accounts or as renewable time deposits with Authorized Dealers, Funds from these accounts can be used to meet expenses for bonafide business travel abroad. Commercial Remittances: Opening Of Branches or Subsidiary Companies Abroad: Remittance of up to US$30,000/‑ or equivalent per annum may be released by the Authorized dealers without prior approval of Bangladesh Bank to meet current expenses of offices/branches opened abroad by resident in Bangladesh or Commercial/Industrial concern incorporated in Bangladesh. Such remittance may only be made in the names of concerned offices/subsidiary companies abroad subject top examination of following papers:

1. Approval letter of the competent authority of the country concerned for opening the office in that country
2. Copy of report submitted to Bangladesh bank.

 Remittance By Shipping Companies Airlines & Courier Service: Foreign Shipping Companies, airlines and courier service companies may send, through an AD, funds collected in Bangladesh towards freight and passage after adjustment of The Authorized dealers may remit such royalty and other local cost & taxes, if any without prior approval of Bangladesh Bank.  Remittance Of Royalty & Technical Fees: No prior permission of the Bangladesh Bank of BOI is required by the enterprises for entering into agreement involving remittance of royalty, technical know‑how or technical assistance fees, operational services fees, marketing commission etc., if the total fees and other expenses connected with technology transfer do not exceed.          a) 6% of the cost of imported machinery in case of new projects          b) 6% of the previous year’s sales as declared in the income tax returns of the ongoing concerns. The Authorized dealers may remit such royalty and other fees without prior approval of Bangladesh Bank. Royalty and other fees beyond the rate mentioned above may be remitted by the Authorized dealers without prior approval of Bangladesh bank provided specific approval of BOI has been obtained by the applicant company.  Remittance On Account Of Training & Consultancy: Industrial enterprises producing for local market may remit through Authorized dealers up to 1% of their annual sales as declared in their previous years’ tax return for the purpose of training and consultancy services as per relevant contract with the foreign trainer/consultant, without prior approval of Bangladesh Bank.  Subscriptions To Foreign Media Services: On application from the local newspapers, Authorized dealers may remit foreign exchange towards cost of subscription of news items, features, and articles of foreign news agencies subject to submission of i) Contracts entered into between the applicant and the foreign news agency and ii) NOC of the ministry of Information. Advertisement Of Bangladeshi Products In Mass Media Abroad: Prior permission of Bangladesh is not required by the Authorized Dealers for remittance of charges for advertisement of Bangladeshi commodities in mass media abroad subject to submission of Invoice from the concerned foreign mass media along with the applications of the remitter. The applicant will have to submit copy of the advertisement to the Ad within one month of this issuance. Bank Charges: The Authorized dealers may affect remittances towards settlement of dues to foreign banks of bank charges, cost of cables and other incidental charges arising in their normal course of the business without prior approval of Bangladesh Bank.

 Inward Remittance:

The term inward remittance includes not only purchase of foreign currency by TT, MT, Drafts etc. but also purchase of bills, purchase of traveler’s cheque. Two forms are prescribed by Bangladesh Bank are used for purchase of foreign currencies such as: EXP Form: Remittances received against exports of goods from Bangladesh are done by form EXP. Form C: Inward remittances equivalent to US$ 2000/- and are above are done by form “C”. However, declaration in form C is not required in case of remittances by Bangladesh Nationals working abroad. Utmost care should be taken while purchasing currency notes, traveler’s cheque, demand draft & similar instrument for protecting the bank from probable loss as well as safety of the bank officials concerned. Foreign Currency (Bank) Notes: ü  General Principles and Precautions

1.  Branches may freely buy foreign currency notes from Bangladesh as well as foreign nationals.
2.     Currency notes, especially notes of higher denominations, i.e. US $ notes of 50 and 100 denominations, should be checked carefully to ascertain their genuineness.
3. Foreign Exchange Department shall maintain currency wise F.C. in hand Control Ledger to   record each day’s transactions.
4. On the last working day of each month the branch shall calculate the exchange gain or loss and carry out necessary adjustment in the control ledger.
5.  Foreign currencies shall be purchased at the rates instructed by the head Office.

 Travelers’ Cheque: The customer tendering the travelers’ cheque should be asked to sign the TCs at the designated places in front of the concerned bank official who would satisfy himself about its genuineness with reference to the customer’s signature already appearing on the TCs and his passport. Should there be any doubt; purchase contracts of the TCs may be asked for. Foreign Draft & Cheque;

The branch should exercise due care and ordinary prudence for purchase of foreign currency denominated drafts, cheque and similar kinds of instruments. The instrument should not be purchased unless the customer is well known to the branch as a regular trustworthy client. An indemnity bond should be obtained for refund of the money along with interest in the event of dishonor of the instruments. Indemnity need not be obtained in case of instruments against which proceeds have already been credited to the bank’s Nostro account.

• If the instrument is drawn on the bank’s branch and the cover amount already paid by the issuing bank into the bank’s Nostro Account the vouchers will be passed at TT (clean) rate.

Telegraphic Transfer (TT): Test number appearing on the TT must be checked and authenticated by the concerned official. After receiving confirmation from the head Office about the proceeds having been credited to their Nostro A/C and observing the usual formalities including declaration on form ‘C’, if necessary, the vouchers are to be passed at the TT buying rate. Accounting treatment for inward remittance

• For Pay Order: If the issuing and paying branches are belonging to the same clearing zone then the pay order is used for bank to bank transfer. The payment against PO is made as per the following journal:

Pay order payable account ………………. Debit Bangladesh Bank/ party account…………. Credit Procedures & accounting treatment of outward remittances: Specific procedure and accounting journals are made for the transfer and the settlement of the outward remittance. Procedure & Journals For PO: Pay order issue: Following procedure is maintained for the issuance of PO:

• Customer is supplied with PO form.
• After filling the form the customer pays the money in cash or by cheque.
• The concerned officer then issues PO on its specific block. This block has   three parts, one for bank and other two for the customer. ‘Accounts payee’ crossing is sealed on all Pay Orders issued by the bank.
• The officer then writes down the number of the PO block on the PO form.
• Two authorized officers sign the block.
• At the end customer is provided with the two parts of the block after signing on the back of the Bank’s part.

Accounting entries:

• Cash /client’s accounts —————————————— Dr.

Pay order accounts ———————————————- Cr.             Commission accounts ——————————————- Cr.   Operation Relating To Clearing: Clearing house is the place where all the bank to bank transactions are settled. In a bank cheques and drafts of different banks are collected from the clients for deposition in his account and the amounts are collected from those responding branches through clearing house. Since we know that there are three ways to collect or remit funds such as cash, clearing and transfer this clearing section is treated as one of the most important banking booth. It is observed that the transactions of very big volume are done through clearing house. When drafts and cheques are drawn on the bank’s branches within the same clearing zone then funds are to be cleared through clearing house but if it is of different clearing zone then the amounts are to be collected not cleared and here the OBC procedure is to be maintained. There are two types of clearing operation;

• Inward clearing;
• Outward clearing.

Inward Clearing: Here the cheques and drafts drawn on the bank itself are deposited to different banks by their clients and then carried in to the bank for payment. The procedure for inward clearing is as follows: Step1. Receipt of the instrument from messenger Step2. Scrutinizing the instrument Step3. Make entry into the inward clearing register Step4. Preparation of voucher & IBCA of honored cheque or instrument Step5. Preparation of memo describing the reason for dishonor (if any) Step5. Sending the IBCA & dishonored cheques to the home branch Outward Clearing: Here the drafts and cheques drawn on different banks branches deposited by the clients into their accounts they are received at first for clearing and after getting cleared through the house they finally credited to the depositors account the procedure is as follows: Management Of Deposit: In this section the division is engaged in the operation of the deposit deposited by the client. There are a number of deposit types of DBL. They are: 4.5.1Current Deposit (CD) 4.5.2Savings Deposit (SB) 4.5.3Fixed Deposit Receipt (FDR) In managing these accounts the division charged a service charge and paid interest if a specific minimum balance is in the accounts. The minimum balance varies with the type of deposit. Payment of interest to the account: At every three months (quarterly) the interest is transferred to the party a/c if there is a specific minimum balance. And the interest is calculated on the outstanding balance of the account. And the interest is transferred by the following journal: Interest on Deposit account……… Dr (With the interest amount) Party account ……………………..  Cr Payment of interest on FDR: At the request of the client the interest on FDR is paid to the client in cash or by pay order. In which way the amount will be paid that will be according to the instruction of the client. If no request is made the bank credited the interest to the a/c of the client at the maturity of the FDR and the FDR again runs with the outstanding balance of the a/c. For payment of the interest of the FDR the following journals are given: For transferring the amount of interest into the Interest payable A/c Interest paid on FDR account…………….  Dr Interest Payable account …………………  Cr For transferring of interest to the party account Interest payable account ………………… Dr Party account …………………………….. Cr For issuance of pay order /cash Party account……………………………..Dr Pay order account ……………………… Cr. Preparation Of Affairs & Other Statements: One of the most important tasks of this division is preparing reports, statements and affairs. The statement are to be prepared for a various time, such as daily, weekly, quarterly, yearly. The statements to be prepared by this division are as follows:

• Statement of affairs (Balance sheet)
• Business performance report
• Statement of income & expenses
• Statement of furniture & fixture
• Analysis of deposit
• State of deposit insurance premium
• Others.

Beside these statements this division is to provide weekly position and monthly position to the head office at the end of every week and month respectively. From the above statements the specimen of the statement of affair is drawn below since it reflects the overall financial position of this institution: Corresponding To Different Institution: This division also maintains all sort of communicational activity with the different institution such as,

• With the head office
•  With the utility service provider
• With the clients
• With other banks etc.

Maintenance Of Accounts: Beside the operation relating to general banking this division maintains different accounts so that the overall control over the income and expenditure may be kept. And as a result of the maintaining of such accounts the preparation of statements is possible, hence the performance of this division regarding this aspect is important with no question. Frequently used accounts maintained by the DBL. The accounts head of the bank is shown below division wise:

Interest on equity fund Discount & commission Discount received Interest on BA gen. a/c Interest on treasury bill Commission on remittance TT issuing commission DD issuing commission PO issuing commission ATM card issuance Stamp charge A/C charge Incidental charge Income accounts Interest on car loan Interest on loan ag. pc Interest on LTR Interest on LIM Interest on TOD Interest on SOD Interest on CC (Hypo.) Interest on term loan Interest on consumer credit             Interest on SB Interest on STD Interest on FDR Interest on BA gen. a/c Interest on MB+ Interest on DG+ Interest on DB+ Discount paid Salaries & allowances Other personal expenses Rent a/c Repair & maintenance Furniture & fixture Machinery Computer & accessories Motor vehicles Other office equipments Printing stationeries Security stationeries Donations Legal expenses Insurance premium (cash) Utilities Excise duty Sundry expenses Office plantation Depreciation                   Internal Control & Internal Check: This division monitors and checks all the internal operation whether they are performed properly. Beside this the officers of this division audited the accounts of the bank and checks all the vouchers regularly whether the are prepared in proper and authenticated accordingly.

 SWOT Analysis Of DBL At A Glance:

In order to analyze the performance of trade services of DBL Bank, I have conducted a SWOT analysis through some in-depth interviewing of their officers. In the process of making a SWOT, employees point out some major strength and weaknesses as well as some threats and opportunities regarding the various issues of the Bank such as – Service level Organizational identity Operational efficiency Technology Employee efficiency etc. along with many other issues.

Weaknesses

• High charges of L/C
• Inefficiency in monitoring courier service
• Discouraging small entrepreneurs
• Absence of strong marketing activities
• Scarcity of innovative products
• Diversification
• High cost for maintaining an Account

Opportunities

• Distinct operating procedures
• Country wide network
• Experienced managers
• Huge population

Threats

• Upcoming banks
• Default culture
• Similar products are offered by other Banks
• Industrial downward trend due to recession, inflation & unemployment

Strengths: Strong corporate identity: According to the customers, DBL is the leading provider of financial services identity worldwide. With its strong corporate image and identity, it has better positioned itself in the minds of the customers. This image has helped DBL grab the personal banking sector of Bangladesh very rapidly. Distinct operating procedure: DBL is known worldwide for its distinct operating procedures. The company’s Managing for Value strategy satisfies customers’ needs better and keeps the firm profitable. Distinct schedule: Everyone in DBL from the appraiser to the top management has to work to the same schedule towards a different aspect of the same goal, interfacing simultaneously at all level over quite a long period. As a result, customers can get instant services as and when required. Strong employee bonding and belongings: DBL employees are one of the major assets of the company. The employees of DBL have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards DBL. The strong organizational culture of DBL is the main reason behind its strength. Efficient Performance: It has been seen from customers’ opinion that DBL provides hassle-free customer services to its client comparing to other financial institutions of Bangladesh. Personalized approach to the needs of customers is its motto. Young enthusiastic workforce: The selection & recruitment of DBL emphasizes on having the skilled graduates & postgraduates who have little or no previous work experience. The logic behind is that DBL wants to avoid the problem of ‘garbage in & garbage out’. And this type of young & fresh workforce stimulates the whole working environment of DBL. Empowered work force: The human resource of DBL is extremely well thought & perfectly managed. As from the very first, the top management believed in empowering employees, where they refused to put their finger in every part of the pie. This empowered environment makes DBL a better place for the employees. The employees are not suffocated with authority but are able to grow as the organization matures. Companionable environment: All office walls in DBL are only shoulder high partitions & there is no executive dining room. Any of the executives is likely to plop down at a table in its cafeteria & join in a lunch, chat with whoever is there. One of the employees has said, “It’s exciting to know you may see & talk to the top management at any time. You feel a real part of things”. Weaknesses: Besides the strengths, customers as well as employees identified some major weaknesses of the bank. High charges of L/C: Presently DBL charges same rates for all types of import L/C. But for import L/C of exports-oriented industry, DBL should reduce the charge of L/C. As a result, exporter will be benefited and the country will earn more foreign exchange. Inefficiency in monitoring courier service: According to customers, DBL can’t strictly monitor the courier services that are engaged in delivering mails and documents. Huge amount delivery failures are being piled up at branches. For this reason, the foreign documents of L/C cannot reach at right place at right time. So, the bank should have some control over its couriers and ensure proper delivery of mail and documents. Discouraging small entrepreneurs: DBL provides clean Import Loan to most of its solvent clients. But they usually do not want to finance small entrepreneurs whose financial standing is not clean to them. Absence of strong marketing activities: DBL currently don’t have any strong marketing activities through mass media e.g. Television. TV ads play vital role in awareness building. DBL has no such TV ad campaign. Scarcity of innovative products: In order to be more competitive in the market, DBL should come up with more new attractive and innovative products. This is one of the weaknesses that DBL is currently passing through. Diversification: DBL can peruse a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify it to leasing and insurance. As DBL is one of the leading providers of all financial services, in Bangladesh it can also offer these services. High cost for maintaining account: The account maintenance cost for DBL is comparatively high. Other banks very often highlight this. In the long run, this might turn out to be a negative issue for DBL.  Opportunities: Distinct operating procedures: Repayment capacity as assessed by DBL of individual client helps to decide how much one can borrow. As the whole lending process is based on a client’s repayment capacity, the recovery rate of DBL is close to 100%. This provides DBL financial stability & gears up DBL to be remaining in the business for the long run. Country wide network: The ultimate goal of DBL is to expand its operations to whole Bangladesh. Nurturing this type of vision & mission & to act as required, will not only increase DBL’s profitability but also will secure its existence in the log run. Experienced managers: One of the key opportunities for DBL is its efficient managers. DBL has employed experienced managers to facilitate its operation. These managers have already triggered the business for DBL as being new in the market. Huge population: Bangladesh is a developing country to satisfy the needs of the huge population, a large amount of investment is required. On the other hand, building EPZ areas and some Govt. policies easing foreign investment in our country made it attractive to the foreigners to invest in our country. So, DBL has a large opportunity here. Threats: Upcoming banks: The upcoming private, local, & multinational banks posse’s serious threats to the existing banking network of DBL: it is expected that in the next few years more commercial banks will emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against and win the battle of banks. Similar products are offered by other banks: Now-a-days different foreign and private banks are also offering similar type of products with an almost similar profit margin. So, if all competitors fight with the same weapon, the natural result is declining profit. Default culture: This is a major problem in Bangladesh. As DBL is a very new organization, the problem of non-performing loans or default loans is very minimum or insignificant. However, as the bank becomes older, this problem will arise enormously and the bank may find itself in a more threatening environment. Thus, DBL has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem. Industrial downward trend due to recession, inflation & unemployment: Bangladesh is economically unstable country. Flood, draught, cyclone, and newly added terrorism have become an identity of our country. Along with inflation, unemployment also creates industry wide recession. These caused downward pressure on the capital demand for investment.

CHAPTER-5

Recommendations & Conclusion

 Recommendations:

• All the branches of Dhaka bank is not introducing with foreign exchange system. So it will be better for Dhaka bank if they will introduce foreign exchange in most of their branches.
• In terms of import or export they have to increase the efficiency along with effectiveness.
• Continuing better relationship with customers.
• They need to put  more emphasis on clients’ service
• In a competitive financial market, their products & services need to focused more to customers, as they can be more knowledgeable about Dhaka Bank’ services.
• Their marketing strategies should disseminate all over the employee.
• As we see that, Media coverage of DBL is no so strong. To attract new clients, they should go for mass media coverage.
• Corporate Social Responsibility is very strong element to hold competitive sustainable advantage into clients mind.
• People in a global edge, are very much well-informed about their wants & needs. They always want to consume better services from the other end. As a service based company, DBL need to introduce better financial services.
• DBL has 44 branches all over the country. It is very hard to provide full range services with those branches. So they need pay their attention toward the expansion the branch network.
• Though DBL is running online business very successfully they should open more ATM booths to meet customer needs and to meet the competitions

Conclusion:

The main competitive advantage DBL is enjoying that it has online banking where as other local commercial bank can not yet achieve that advantage. But all the commercial banks are now trying to achieve this. In this bank the employees are highly motivated by their remunerations and other benefits. Here, all the employees are very much cooperative with their customers, colleagues and simply visitors. In this report I tried to find out all sorts of practical dealings that are conducted in case of handling various type of banking activities in each department, the theoretical aspects, that is what should be the procedures and requirements maintained from first to last, and actual practices as well as the ultimate gain for the bank in conducting financial activities are mainly discussed.

Bibliography:

Books:

• Marketing Research

           Naresh K. Malhotra (fifth edition)

           Organizational Publications

• Annual Report of Dhaka Bank Limited-2009

Internet Resources:

• www.dhakabankltd.com
• www.bangladeshbank.org