Rupali Bank Limited

Statement of the research problem :

The internship program is required for the student of MBA . It is a program with duration of three months. Students who have completed all the required courses are eligible for this program. In the internship program I was attached to the RUPALI Bank Limited for three months.

Origin Of the Study:

After completing my graduation as a student of MBA, JAGANNAT University of Management studies, I like to do Internship in a reputed Bank, which would be helpful for my future professional career. I got the opportunity to perform my internship in the Rupali Bank Ltd. It was a Three months long practical orientation program.

This report is originated as the requirement of Rupali Bank Ltd and as well as my degree.

Objectives Of the Report:

The primary objective of this report is to provide overviews on the function of Rupali Bank Ltd. Objectives of the study are summarized in the following manner:

• To explore General Banking activities of Rupali Bank Ltd.
• To gain comprehensive knowledge about the present General banking scenario of Rupali Bank.
• To identify the existing problems of the stated department.
• Giving suggestion for betterment
• To know about remittance.

 To know the better customer service.

Methodology:

SOURCES OF DATA

In order to make the report more meaningful, presentable, a complete one and to meet the goal of this report different data and information are required. Those data and information were collected from various sources, such as, primary and secondary which is showed below:

 The “Primary Sources” are as follows:

1)      Practical desk work.

2)      Face-to-face conversation with the respective officers and staffs of the local office.

3)      Relevant file study as provided by the officers concerned.

4)      Facing some practical situation related with the day to day banking activities.

The “Secondary Sources” of data and information are:

1)       Annual Report of Rupali Bank Bangladesh Limited

2)       File study.

3)       Various books, articles, compilations etc. regarding centralization process.

4)       Different ‘Procedure Manual’.

5)        Brochures

6)       Bangladesh Bank Annual report

7)       Newspapers

8)       Internet

9)       Several kinds of Academic test-book.

10)   Different publications regarding banking functions and Remittances operation.

Scope Of the Report:

As I was sent to Rupali Bank Ltd. shadorghat Branch, the scope of the study is only limited to this branch. The report covers its overall department wise function, structure and performance. The report also covers details about Rupali Bank Ltd.

Literature review :

During the three months internship program at Federation Branch, almost all the desks have been observed more or loss. This internship program, in fast, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Comparing practical knowledge with theoretical involves identification of weakness in the branch activities and making recommendations for solving the weakness identified. Though all departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation. So, objectives of this internship program  have not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objectives the internship programmed.

 During the internship, it is found that the branch provides all the conventional banking services as well as some specialized financing activities to the economy. General banking services department is the largest department of the branch in terms of manpower and profit earning. In this year, it earns more than 60% of branch’s total profit. Thus by providing this various services,Sodhorghat  Branch, RUPALI Bank is playing an important in the banking system and in the payment system of Bangladesh.

Limitations:

 The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh specially Rupali Bank ltd. Some constraints are appended bellow:

• As some of the fields of banking are still not covered by our courses, there was difficulty in understanding some activities.
• Every organization has their own secrecy that is not revealed to others. While     collecting data i.e. interviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization.
• Since the bank personals were very busy, they could provide me very little time.
• Another problem is that creates a lot of confusions regarding verification of data. In some cases more than one person were interviewed to clarify each concept as many of the bankers failed to provide clear-cut idea about the job they perform.
• The clients were too busy to provide me much time for interview.

Scenario regarding the main topic of the report in Bangladesh
Scenario of General bank and Customer satisfaction in Bangladesh:

 Bank is the financial institution. Bank collect money in different sectors and give this money in other sector. Our modern business organization is more dependable with bank. Not only business organization but also all other sector( such as private,owner and so on) transaction money with bank.  General bank deal with the daily transaction process.

Create fund: Basically bank collect money in different organization,personal and others area. It is the part of general bank. Bank gives interest the collecting fund.

  To help the business transaction: No nation cannot development without the business. Our business sector collects money and gives the money in other party. Bank helps the business organization by TT, PO, DD and so on.

  Help for economic development: Account opening section, collect                 money, withdrawn money and others sector is the part of GB. In this sector is the main part of the bank. Bank mainly earns money with TT, DD, PO etc. Bank gives tax to the government and government prepared the country’s infrastructure development. Sometime bank spend money for social development.

All others bank deal with the customer. No bank doesn’t improve without customer satisfaction. Basically GB and Customer satisfaction is the main part of the bank. When the bank stable then the bank firstly permit to conduct those sector.

 An overview of the organization:

Historical Background of Rupali Bank Ltd.

Rupali Bank Ltd. was constituted with the merger of 3 (three) erstwhile commercial banks i.e. Muslim Commercial Bank Ltd., Australasia Bank Ltd. and Standard Bank Ltd. operated in the then Pakistan on March 26, 1972 under the Bangladesh Banks (Nationalization) Order 1972 (P.O. No. 26 of 1972), with all their assets, benefits, rights, powers, authorities, privileges, liabilities, borrowings and obligations. Rupali Bank worked as a nationalized commercial bank till December13, 1986.
Rupali Bank Ltd. emerged as the largest Public Limited Banking Company of the country on December 14, 1986.

 Corporate Information:

Board of Directors of RBL

Date of incorporation:14 December 1986

 Present Capital Structure:

Authorized Capital : Tk. 7000 million (US$ 120.70 million) Paid up Capital : Tk. 1250 million (US$ 21.55 million)

Break up of paid up Capital:

Government shareholding : 93.11% Private shareholding : 06.89 %

Present Share Structure:

 Total Number of share (Each lot 10) : 1,25,00,000 Share Demated by shareholders as  on  31.03.2010

VAT Registration: 9011039307

Tin Certificate: 177-200-0021/LTU/Dhaka

Listing with DSE:19-08-1987

Listing with DSE:10-10-1995

Organizational structure of Rupali Bank:

Number of Branches:

Rupali Bank is largest bank of Bangladesh.There are 497 branches of Rupali bank.Corporate branches is situated in Motijill.There are the many branches that is stable local area.I gather practical knowledge on internship study from sodhorghat branche.

 Number of employess:

Vision of Rupali Bank Ltd.

To become a leading banking institution and to play a pivotal role in the development of the country. The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

Mission of Rupali Bank Ltd.

• To provide excellent quality customer service
• To become a trusted repository for customer’s money and their financial advisor
• To display team spirit and professionalism
• To have a sound capital base
• To be the finest bank in the banking area
• To maintain corporate and business ethics

 Product or services scheme:

    Rupali bank deals with the customer.Their services scheme refer below the chart.

Marketing Strategies of Rupali Bank

 To attain the above vision and mission Rupali Bank follow the following Marketing Strategies:

1        The main strategy of the bank is using Rupali Banking System to attract its market.

2        Providing efficient customer service

3        Maintaining corporate and business ethics

4        Being trusted repository of customers’ and their financial advices

5        Making its products superior and rewarding to the customers

6        Display team spirit and professionalism

7        Sound capital base

8        Enhancement of shareholders wealth

9        Fulfilling its social commitments by expanding its charitable and humanitarian activities

10    Providing high quality financial services in export and import trade.

11    Building tight personal relationship with customers and clients

Principles Activities  :

Three major departments of principle activities.Those are

1. General banking department.

2. Credit risk management department.

3. Foreign exchange department.

1. General Banking Department.

This department is the retail department of the bank that provides personal services to the retail customers. Major services provided in this department are –

• Deposits and withdrawals
• Remittance of local and foreign currencies
• New account openings
• Purchase of various types of savings scheme.

2. Credit Risk Management Department.

Credit department can be mentioned as one of the key departments, particularly in the major or active branches of the Bank. This department provides all sorts of credit facilities to the customers. The major services of the Credit Department includes-

• Providing Overdraft Facilities
• Project Loan
• Consumer Credit Scheme
• Bank Guarantee and
• Other Services.

As credit quality remains the prime indicator of any banks commercial success, an unsound credit may reduce banks’ ability to provide credit towards profitable borrowers and undermine liquidity and solvency. So it’s necessary to develop sound credit policy, use modern techniques and properly analyze the credit proposals to assess risks.

3. Foreign Exchange Department.

Foreign exchange Department provides services regarding financing of International Trade to its customers. Financing can be in terms of both funded and non-funded facilities. Major types of services provided by this department include-

• Financing of Letter of Credit
• Back to Back letter of Credit
• Foreign Currency Accounts
• LTR, LIM and
• Other servic

SWOT Analysis Of Rupali Bank Ltd

 SWOT Analysis:

SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

So we can say that it is a technique used by the credit officers to evaluate credit proposal submitted by company especially by the production concern. Here,

S –        Denotes Strength

W –      Denotes Weakness

O –       Denotes Opportunity

T –       Denotes Threat

Strengths:

—    Rupali Bank ltd has already established a favorable reputation in the banking industry of the country. It is one of the leading govt sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector.

—    Rupali Bank ltd has provided its banking service with a top leadership and management position. The Board of Directors headed by its Chairman Dr. Ahmed Al-Kabir is a skilled person in business. M. Farid Uddin world is the Managing Director of the bank management team.. The top management officials have all worked in reputed banks and their years of banking experience, skill, and expertise will continue to contribute towards further expansion of the bank.

—        Rupali Bank ltd has already achieved a high growth rate accompanied by an impressive profit growth rate in 2004. The number of deposits and the loans and advances are also increasing rapidly.

—       Rupali Bank ltd has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees.

 —     Rupali Bank ltd has the reputation of being the provider of good quality services too its, potential customers.

Weaknesses:

—        The main important thing is that the bank has no clear mission statement and strategic plan. The banks not have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan.

—        The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days.

__        The poor service quality has become a major problem for the bank. The quality of the service at Rupali Bank ltd is higher than the Dhaka Bank, Prime Bank or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank .

—        Some of the job in Rupali Bank ltd has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of Rupali Bank ltd that it is having a group of unsatisfied employees.

__        In terms of promotional sector, Rupali Bank ltd has to more emphasize on that. They have to follow aggressive marketing campaign.

Opportunities:

—         In order to reduce the business risk, Rupali Bank ltd has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.

—       The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank.

—       Opportunity in retail banking lies in the fact that the country’s increased   population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market.

—     A large number of private banks coming into the market in the recent time. In this competitive environment Rupali Bank ltd must expand its product line to enhance its sustainable competitive advantage.

—       In addition of those things, Rupali Bank ltd can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders. And the scheme should be separate according to the professions, such as engineers, lawyers, doctors.

Threats:

—    All sustaining multinational banks and upcoming foreign and private banks pose significant threats to Rupali Bank ltd. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against these local and foreign banks.

—        The default risks of all term loans have to be minimized in order to sustain in the financial market. Because of default risk the organization may become bankrupt. Rupali Bank ltd has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not eliminate.

—    The low compensation package of the employees from mid level to lower level position is not able to keep the employee motivation. As a result, good quality employees leave the organization and it effects the organization as a whole.

Finally we can say that, top management officials have experience skill and proficiency on banking. RBL has got impressive decoration, for that it creates the attention of the potential customers. Lovely environment boost up capability of the employees. Besides these RBL has adequate capital, high interest rate for DPS and Savings account and it’s goodwill. For poor employment system, RBL is loosing its reputation. For this reason right people are also not in right place for reference appointment. Another weakness is low interest rate of FDR, for which RBL is loosing their customers. This analyzes the opportunity, which will be available to a company in near future, such as withdraw of tax, incentives, export, exemption and more credit facilities etc. RBL can also adopt diversification strategy in expanding the business line into leasing and insurance company. It analyzes the threats, which may face the company such as international law, withdraw of most favorable nation (MFN) and GSP facilities etc. Some contemporary, multinational and upcoming banks are competitors of RBL. These bank poses threat for RBL. So RBL should take necessary steps to compete with them.

 DRAW A CONCLUSION:

SWOT analysis is involves more than just developing the four lists of strength, weakness, opportunities, and threats. The bank Swot analysis indicate the overall situation that are skilled human resource, IT technology, insufficient ATM booth, customer service , market opportunity etc.

Using the 4 lists to draw conclusion about a bank’s overall situation:

    Acting on the conclusion to

1.Better match a bank’s strategy  to its resource, strengths, and market opportunities.

2.Correct the important weakness.

3.Defend against external threats.

What can be obtain Swot analysis:

1.Where on the scale from alarmingly weak to exceptionally strong close the attractiveness of the bank’s situation rank?

2.What are the attractive and unattractive aspects of the bank’s situation ?

3.What are the external threats weakness, competitive deficiencies to the bank’s future prospect.

Prepare Action Plan:

1.Necessary for banking activities that expanded new technology

2.Introduce mobile banking service

3.Increase customer service quickly in time, so customer are satisfied

4.Introduce credit card ,debit card for immediate cash service

5.Set up a fair employee management relationship

6.Increase banking own transport facilities

7.Create new service scheme for customer

8.Expanding SME loan

9.Starting Islamic banking service. Like : loan for Hajj

10.Introduce flexible banking guide service for customer satisfaction.

11.Set a low charge for different service.

General Banking Activities of Rupali Bank Ltd.

 GENERAL BANKING:

General banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here.

Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. In Rupali Bank Ltd Principal Branch, the following departments are under general banking section:

a)      Account opening section

b)      Deposit section

c)      Cash    section

d)     Clearing section

e)      Accounts section

 Our Services:

Deposit Services
a)  Savings Bank Account
b)  Fixed Deposit Account
c)  Short Term Deposit Account
d)  Current Account
e)  Pension Account
Loans & Lease Services
a)  Micro Credit
b)  Small and Medium Enterprise Financing

c)  Industrial Loans
d)  Working Capital Financing
e)  Export Credit
f)  Import Credit
g)  Bills Purchase
h)  Letter of Credit
i)  Letter of Guarantee
j)  Lease Financing
k)  Transport Financing
l)  Consumers Loan Scheme
m)  House Building Loans

Miscellaneous Services
a) Electric Bill
b) Gas Bill
c)  Phone Bill
d)  Cheque Clearing
e)  Instrument Collection
f)  Locker Services
Accounts Opening Section:

Account opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationship. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account. A customer can open different types of accounts through this department. Such as:

       1. Current Account.

       2. Savings account.

       3. Fixed Deposit

       4. Short Term Deposit (STD)

       5. Cash credit (CC)

►Types Of Accounts With Terms And Conditions:

Current Account:

Current account is purely a demand deposit account. There is no restriction on withdrawing money from the account. It is basically justified when funds are to be collected and money is to be paid at frequent interval.

Some Important Points are as follows-

  Minimum opening deposit of TK.5000/- is required, but under special circumstances it may be opened with tk.1000.

 There is no withdrawal limit.

 No Interest more or less is given upon the deposited money;

 Profit rate is 0.00%.

Savings Account:

This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Some Important Points are as follows-

  Minimum opening deposit of Tk.500/= is required;

 Withdrawal amount should not be more than 1/4^th of the total balance at a time and limit twice in a month.

 If withdrawal amount exceed 1/4^th of the total balance at a time no Profit more or less is given upon the deposited money for that month.

• Fixed Deposit:

The Local Remittance section of Rupali  Bank Ltd  also issues FDR.They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of Profit more or less on such deposits.

• Opening of fixed Deposit Account:

  The depositor has to fill an account form where in the mentions the amount of deposit, the period for which deposit is to be made and name/names is which the fixed deposit receipt is to be issued. In case of a Joint name Rupali Bank ltd also takes the instructions regarding payment of money on maturity of the deposit. The banker also takes specimen signatures of the depositors. A fixed deposit account is then issued to the depositor acknowledging  receipt of the sum of money mentioned there. It also contains the rate of Profit more or less and the date on which the deposit will fall due for payment.

Term Deposits:

These rates are not negotiable. In this table we can find out the percentage that is given by the bank for specific period of time to the customer.

 STD (Short Term Deposit) Account:

Normally various big companies, organizations, Government Departments keep money in STD account. Frequent withdrawal is discouraged and requires prior notice.  The deposit should be kept for at least seven days or thirty days to get Profit more or less. The Profit more or less offered for STD is less than that of savings.

  All Interest Rates are

 * The rates of interest are changeable from time to time depending upon market competition.

Dishonor of Cheque:

If the Cheque is dishonored, RBL sends a memorandum (Cheque returns memo) to the customer stating the reason in the following way,

 Refer to drawer

 Not arranged for

 Effects not cleared. May be presented again.

Exceed arrangements

    Full cover not received.

    Payment stopped by drawer

    Payee’s endorsement irregular/ required.

    Payees endorsement irregular, require banks confirmation.

    Drawer’s signature differs/ required.

    Alterations in date/figures/words require drawer’s full signature.

    Cheque is post dated/ differs.

    Crossed Cheque must be presented through a bank.

    Clearing stamp required/ requires cancellation.

    Addition to bank discharge should be authenticated.

    Cheque crossed “account payee only”

    Collecting bank discharge out of date/ mutilated.

    Amount in words and figures irregular/required.

► Account Opening procedure:

►Documents required for opening account

 □   Individual / Joint Account:

1. Introduction of the account.
2. Two photographs of the signatories duly attested by the introducer.
3.  Photo Identity.
4. Joint Declaration Form (For joint a/c only).
5. Employee’s Certificate (in case of service holder).

 □   Partnership account:

1. Introduction of the account.
2. Two    photographs of the signatories duly attested by the introducer.
3. Partnership letter duly signed by all partners (Sign should be similar as stated in Partnership Deed).
4. Partnership Deed duly certified by Notary public.
5. Registration (If any).
6. Resolution of meeting for opening an account.
7. Updated Trade license.

□    Proprietorship account:

1. Introduction of the account.

2. Two    photographs of the signatories duly attested by the introducer.
3. Valid copy of Trade License.
4. Rubber stamp.
5. TIN number certificate.
6. Photo Identity.

7.National Certificate photocopy.

□   Limited company:

1. Introduction of the account.
2. Two photographs of the signatories duly attested by the Introducer.
3. Valid copy of Trade License.
4. Board resolution of opening A/C duly certified by the Chairman/Managing Director.
5. Certificate of Incorporation.
6. Certificate of Commencement (In case of Public limited company).
7. Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director.
8. List of directors along with designation & specimen signature.
9. Latest certified copy of Form – xii (to be certified by register of joint stock companies) (In case of Directorship change).
10. Rubber Stamp (Seal with designation of each person)
11. Certificate of registration (In case of Insurance Company – Obtained from department of Insurance from the Peoples Republic of BD).

 □    Club / societies account:

1. Introduction of the account.
2. Two photographs of the Signatories duly attested by the introducer.
3. Board Resolution for Opening A/C duly certified by President/ Secretary.
4. List of Existing Managing Committee.
5. Resolution of meeting for opening an account.
6. Registration (if any).
7. Rubber Stamp.
8. Permission letter from Bureau of N.G.O. (In case of N.G.O. A/C).

 ►Closing of an account:

 The closing of an account may happen,

  If the customer is desirous to close the account,

  If the Rupali Bank ltd finds that the account is inoperative for a long duration.

  If the Rupali Bank ltd get garnishee order from court.

A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to draw the final check for the amount standing to the credit of his/her account less the amount of closing an other incidental charge and surrender the unused check leaves. The account should be debited for the account closing charge etc and the authorized officer of the bank should destroy unused check. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing of an account is Tk.100.

► Special Savings Scheme:

 Savings helps to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, Rupali Bank ltd offers Special Savings Scheme.

The schemes are:

• Youth and Farmer Loan

• SME Loan

• Student Loan

• Rupali Monthly Earning Scheme

►Terms and conditions of the scheme:

  Youth and Farmer Loan

# No charge no fee…

# Fixed member must be 18-35 years old

# must have a account on this branch

# 200,000**taka the highest provided but in group 50, 00000**are provided but liean must have

# Interest rate 10% and 2 years payable

 SME Loan

# It’s classifying under 4 categories this are:

1/ Shohoj Rin (2 lack only)

2/ Sholob Rin (5 lack only)

3/ business Rin (3 core only)

4/ medium Rin (3-20 core only give the loa

 Student Loan

 # 12 lacks only for study loan but not payable

# 13% interest rate only for 3 month (changeable)

 Rupali Monthly Earning Scheme

# The time of 3-5 years

# Interest rate for 3 years 8% and for 5 years 8.50%

# 80% advance loan are taken depositor against liean

 Loan & Advance:

After two years of savings in this scheme the depositor (if an adult) is eligible for a loan up to 80%of his deposited amount. In that case, Profit more or less rates on the loan will be applicable as per prevailing rate at that time. Only Tk/-200 will be collect for service charge.

Reason for disqualification from this scheme:

1. If the depositor fails to pay 3 installments in a row, then he will be disqualified from this scheme and Profit more or less will be applicable as mentioned in withdrawal clause.
2. In case of death of the depositor the scheme will mark deceased to function. The amount will be handed over to the nominee of the deceased depositor. In case of absence of the nominee the bank will handover the accumulated amount to the successor of the deceased

Objectives:

1. An account is to be opened by filling up a form.
2. The Bank will provide to the customer a deposit receipt after opening the account. This receipt is non-transferable.
3. If the deposit is withdrawn before maturity term, then saving rate of profit will be applicable and paid to the depositor. However, no profit will be paid if the deposit is withdrawn within six months of opening the account and monthly income paid to the customer will be adjusted from the principal amount.
4. A depositor can avail loan/quard up to 80% of the deposit amount under this scheme. In this case, profit will be charged against the loan, the monthly income will be credited to the loan account until liquidation of the loan amount inclusive of profit.

 Deposit Section:

Deposit is the lifeblood of a bank. From the history and origin of the banking system

We know that deposit collection is the main function of a bank.

Accepting deposits

The deposits that are accepted by Ruplai Bank ltd like other banks may be classified into,

a) Demand Deposits

b) Time Deposits

Demand deposits:

These deposits are withdrawn able without notice, e.g. current deposits. Rupali Bank ltd accepts demand deposits through the opening of –

a) Current account

b) Savings account

c) Call deposits from the fellow bankers

Time deposits:

A deposit which is payable at a fixed date or after a period of notice is a time deposit. Rupali Bank ltd accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD).

 While accepting these deposits, a contract is done between the bank and the customer. When the banker opens an account in the name of a customer, there arises a contract between the two. This contract will be valid one only when both the parties are competent to enter into contracts. As account opening initiates the fundamental relationship & since the banker has to deal with different kinds of persons with different legal status, Rupali Bank ltd officials remain very much careful about the competency of the customers.

 Cash section:

 Banks, as a financial institution, accept surplus money from the people as deposit and give them opportunity to withdraw the same by cheque. But among the banking activities, cash department play an important role. It does the main function of a commercial bank i.e. receiving the deposit and paying the cash on demand. As this department deals directly with the customers, the reputation of the bank depends much on it. The functions of a cash department are described bellow:

Functions of Cash Department

 □ Cash packing:

  After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamped with initial.

 □ Allocation of currency:

 Before starting the banking hour all tellers give requisition of money through   “Teller cash proof sheet”. The head teller writes the number of the packet denomination wise in “Reserve  sheet” at  the  end of the day, all the notes remained are recorded in the  sheet.

 Local Remittance:

Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.

 Types of remittance:

• Between banks and non banks customer
• Between banks in the same country
• Between banks in the different centers.
• Between banks and central bank in the same country
• Between central bank of different customers.

 The main instruments used by the Rupali Bank Ltd of remittance of funds are:

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

 The basic three types of local remittances are discussed below

 Test – key Arrangement: 

Test key arrangement is a secret code maintained by the banks for the authentication for their telex messages. It is a systematic procedure by which a test number is and the person to whom this number is given can easily authenticate the same test number by maintaining that same   procedure. Rupali Bank ltd has test key arrangement with so many banks for the authentication of LC message and for making payment.

Commission for PO:

Rupali Bank ltd charges different amount of commission on the basis of Payment order at. The bank charges for pay order are given in the following chart:

Bill and Clearing Section:

Cheque, Pay Order (P.O), Demand Draft (D.D.) Collection of amount of other banks on behalf of its customer is a basic function of a Clearing Department.

Clearing:  Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house.

Clearing House:  Clearing House is a place where the representatives of different banks get together to receive and deliver cheque with another banks.

Member of Clearing House:  Rupali Bank ltd is a scheduled Bank. According to the Article of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse.

Types of Clearing:

A)    Outward Clearing: When the Branches of a Bank receive Cheque from its customers drawn on the other Banks within the local clearing zone for collection through Clearing House, it is Outward Clearing.

B)    Inward Clearing: When the Banks receive Cheque drawn on them from other Banks in the Clearing House, it is Inward Clearing.

Types of clearing house:  There are three types of clearing house: Those are

      1) Normal clearing house

      2) Same day clearing house

      3) Special Clearing House

 Normal clearing house:

1)       1^st house: 1^st house normally stands at 10 a.m. to 11a.m

2)      2^nd house: 2^nd house normally stands after 3 p.m. and it is known as return house.

Same day clearing house:

1)      1^st house: 1^st house normally stands at 11 a.m. to 12 pm

2)      2^nd house: 2^nd house normally stands after 2 p.m. and it is known as return house.

Special clearinghouse:

3)      1^st house : 1^st house normally stands at 11 a.m. to 12 pm

3)      2^nd house: 2^nd house normally stands after 7 p.m. and it is known as return house.

(Special clearing generally held on yearly, half yearly closing of Bank and sometimes Eid-ul Fatr and Eid Ul Azha)

• Who will deposit cheque for Clearing:  Only the regular customers i.e. who have Savings, Current, STD & Loan Account in the bank can deposit cheque for collection of fund through clearing house.

• Precaution at the time of Cheque receiving for Clearing, Collection of LBC, OBC & Transfer:

    1) Name of the account holder same in the Cheque & deposit slip.

    2) Amount in the Cheque & deposit slip must be same in words & in figure

             3) Date in the Cheque may be on or before (but not more than six months

                     back) clearing house date.

   4) Bank & Branch name of the Cheque, its number & date in the Deposit

         slip.

    5) Cheque must be signed.

    6) Signature for confirmation of date, amount in words / in figure Cutting &

         Mutilation of Cheque.

    7) Cheque should be crossed (not for bearer Cheque).

    8) Account number in the deposit slip must be clear.

    9) Depositor’s signature in the deposit slip.

Cheque may be dishonored for any one of the following reasons:

1)    Insufficient fund.

2)    Amount in figure and word differs.

3)    Cheque out of date/ post- dated.

4)    Payment stopped by the drawer.

5)    Payee’s endorsement irregular / illegible / required.

6)    Drawer’s signature differs / required.

7)    Crossed Cheque to be presented through a bank.

8)    Other specific reasons not mentioned above.

The dishonor Cheque entry in the Return Register & the party is informed about it. Party‘s signature required in the return register to deliver the dishonor Cheque. After duration, the return Cheque is sent to the party’s mailing address with Return Memo.

Responsibility of the concerned officer for the Clearing Cheque:  

1)      Crossing of the Cheque.

2)      Computer posting of the Cheque.

3)      Clearing seal & proper endorsement of the Cheque.

4)      Separation of Cheque from deposit slip.

5)      Sorting of Cheque 1st bank wise and then on branch wise.

6)      Computer print 1^st branch wise & then bank wise.

7)      Preparation of 1^st Clearing House computer validation sheet.

8)      Examine computer validation sheet with the deposit slip to justify the computer posting

9) Copy of computer posting in the floppy disk.

Bills   Collection: 

In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned. Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of their customer.

            Types of Bills for Collection

1. Outward Bills for Collection (OBC).
2. Inward Bills for Collection (IBC).

Outward Bill for collection OBC:

OBC means Outward Bills for Collection .OBC exists with different branches of different banks outside the local clearinghouse. Normally two types of OBC:

1)      OBC with different branches of other banks out of clearing house.

2)      OBC with different branches of the same bank.

Procedure of OBC:

1)      Entry in the OBC register.

2)      Put OBC number in the Cheque.

3)       “Crossing seal” on the left corner have the Cheque & “payees account will be credited on realization “seal on the back of the Cheque with signature of the concerned officer.

4)      Dispatch the OBC Cheque with forwarding.

5)      Reserve the photocopy of the Cheque, carbon copy of the forwarding and deposit slip of the Cheque in the OBC file.

Inward bills for collection (IBC):

When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill.

    Procedure of IBC:

1. IBC against OBC: To receive the OBC Cheque first we have to give entry in the IBC Register .The IBC number should put on the forwarding of the OBC with date.
2. Deposit of OBC amount: OBC Cheque amount is put into the “sundry deposit-sundry Creditors account”, prepare debit & credit voucher of it. If the OBC Cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount.
3. If the OBC Cheque is dishonored, the concerned branch is informed about it.
4. Again place in the clearing house or send the OBC Cheque with Return Memo to the issuing branch according to their information

Accounts Section:

Accounts Department is called as the nerve Centre of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department.

Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements.

Workings of this department

• Recording the transactions in the cashbook.
• Recording the transactions in general and subsidiary ledger.
• Preparing the daily position of the branch comprising of deposit and cash.
• Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately.
• Making payment of all the expenses of the branch.
• Recordings inter branch fund transfer and providing accounting treatment in this regard.
• Preparing the monthly salary statements for the employees.
• Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R)
• Preparing the monthly position for the branch, which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R)?
• Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit.
• Checking of Transaction List
• Recording of the vouchers in the Voucher Register.
• Packing of the correct vouchers according to the debit voucher and the credit voucher.

Service Level & Customer Satisfaction:

The Process of measuring the Satisfaction:

The satisfaction is an abstract task. The state of satisfaction of the Customers has been measured under some criteria. The criteria are given below.

1.    The Bankers can understand and realize the Customers’ Problem properly and accurately.

2.    The Bankers can solve the Customers’ Problem quickly and properly.
3.    The Bankers are very friendly and helpful to the Customers
4.    The Bank has wide spread Service Facility and Link
5.    The Customers can receive the Services from very close to their House and Business Outlet.
6.    The Phone Link has increased the Service Level of this Bank to great extent
7.    How much the Customers are satisfied with the overall Service of the Bank
8.    The Bankers provide Sufficient Information about their Product and Information necessary to the Customers

The respondents expressed their answer in a 5 point grading scale. Any point close to 5(five) indicates the higher satisfaction of the Customer about the criteria and any point close to 1(one) indicates the dissatisfaction of the Customer regarding the criteria.

A total of 25 respondents expressed their views. The maximum number under each criterion is 125 (25 x 5). The state of Service Level of the Bank in terms of the satisfaction of the Customers is expressed in the points—————-

1. 1.   Very Good                          Total Score ——- (115 to 125)           (Out of 125)
3. 2.   Good                                    Total Score ——- (115 to 125)           (Out of 125)
4. 3.   Satisfactory             Total Score ——- (115 to 125)           (Out of 125)
6. 4.   Moderate/Average Total Score ——- (115 to 125)           (Out of 125)

1. 5.   Poor                                     Total Score ——- (115 to 125)           (Out of 125)

So the Service Level of the Bank has been expressed in these 5(five) points.

These 5(five) points stands for some special meaning and explanation. The statements that stand with these points are given below.

1.   Very Good:

The Service Level is very high quality. The Bank enjoyed a huge advantage in this regard. This will help the Bank to get more Customers and maintain a warm relation with them. The Bank is really getting benefit from this type of Service while maintaining the highly satisfaction from the Customers point of view. So it can be ranked as High-quality Service.

2.   Good:

The Service is competitive in the Banking Business Market and is one of the strong points for the Bank. The Customers are satisfied in an acceptable way for the Service provided by the Bank. The Bank enjoys some advantage in this regard of the Service, which helps the Bank to create new Customers and maintain well relation with the existing ones.

3.   Satisfactory:

The Bank is doing well in the regard of this Service. But it is not a strong point for the Bank. The Bank does not enjoy any advantage over other Banks in this regard. The Customers are satisfied but do not have much positive impression for this Service of the Bank. The Bank needs to improve the Level of this Service in order to gain comparative advantage to other Bank.

4.   Moderate/Average:

The Service Level is very ordinary. It is considered as one of the vulnerable point of the Bank. The other Banks can easily enjoy superiority over this Bank in regard of this Service attract the attention of the Customers to their respective Banks. The Bank really needs to improve this regard as the Customers are not satisfied with the Service.

5.   Poor

The Service is really worst and the Customers are quite dissatisfied in this regard. It is a real disadvantage and weak point for the Bank. In order to maintain the Customers loyalty to the Bank, the Bank needs to improve this Service with no delay. If the Bank fails to improve this sector, there is a great possibility that the Bank will loose a huge cluster of its present Customers and lag behind in the competitive market.

General Opinion of the Customers:

Of the Banking Service provided by various Private Commercial Banks and Public Commercial Banks the Customers can distinguish some Unique Quality and Advantages for making and managing their Banking Relation with Bank. The Advantages that they feel while maintaining the Banking Relation with this Bank are as follows:

1.     The Bank is more secured in terms of Banking Transaction and keeping Money here

 2.     The Bank has wide access and huge range of Service offerings

 3.     The Atmosphere of the Bank is more attractive than other Banks

 4.     The Bank can provide them prompt Service

 5.     The Bankers are very friendly to the Customers

 6.     Even the Banking Transaction through this Bank is reliable, trustworthy and smooth to various Organizations within the country or abroad.

According to the Customers there are also some short comings. They are:

1.     The Bank takes high Charges for their Service in some areas of Banking Operations than that of the Nationalized Commercial Banks.

 2.     Even sometimes they are not aware of various Charges for the Products and Services provided by the Bank.

Analysis and Findings regarding the objectives of the study:

Analysis:

Anaiysis of banking activities is the difficult topic or substance into smaller parts to gain a batter understandent of  it.It also means examination and division of a business related situation or problem into major elements in order to understand the item in question and make appropriate recommendations. For this report I present analysis the objectives of the study of  RBL.

Account system:

              Bank account are mainly of three types.

                                                       1)  Current Account

                                                       2)  Saving Account

                                                       3)  Fixed Account

Deposit:

Deposit Position:

The deposit of RBL stood at tk 56344.95 million as on 31/12/2010 as againist Tk 4242.09 million of 31/12/2009 registering an increase of Tk 13921.86 million i.e 32.82% growth. Deposit is the life blood of a Bank.

About 91% of total deposit of  RBL belonged to term deposit which is considered as high cost deposit. Only 5% of total deposit comprised current and savings deposit. In 2010 total deposit of  RBL grow by 32.82% and stood at BDT 56344.95 million.

 Services:

• Ø Online: RBL is set up the netork service in connected with corporate brance and it is directly connected of Bangladesh Bank.
• Locker: Locker services is available in most of the branches in urban area.
• Utility Bills collection

Remittence:

       There are various types of remittance money sucs as

  Pay Order

  Demand Draft

  Telephonic Transfer

  Mail Transfer Advice

Liquidity Ratio:

• Current Ratio

Table: 14 Current Ratio

Source: Annual Report of RBL & Pubali Bank Limited (PBL) (2008, 2009, 2010)

We know that, the current ratio measures a firm’s liquidity by measuring the portion of its current asset relative to its current liabilities and the higher the ratio, the higher the liquidity of the firm. The graph shows that, in 2008, current ratio of RBL and PBL were almost same but RBL current ration was better than PBL in 2009 and 2010 respectively 1.17 and 1.11. In 2010, RBL’s current ratio reduced at 1.11.  So it can be said that, lower the current ratio, the lower the ability of the firm to pay its bills.

 Activity Ratio

• Total Asset Turnover

Table: 15 Total Asset Turnover

Source: Annual Report of RBL & PBL (2008, 2009, 2010)

We know greater the total asset turnover; it is more efficient and 4 to 6 times is standard position. The graph shows that, the total asset turnover ratio of RBL was more than PBL in 2008 and 2009 but PBL has generated maximum level of turnover in year 2010 comparison with RBL  It can be said that PBL was more efficiently use its assets to generate income.

Profitability Ratio:

• Net Profit Margin

Table: 18 Net Profit Margin

Source: Annual Report of RBL & PBL (2008, 2009, 2010)

The graph shows that, in 2010 net profit margin of RBL was so lower i.e. 7.27% but on the other hand PBL’s net profit margin was more than RBL i.e. 25.20% and over three years RBL and PBL’s net profit margin fluctuated. The higher the firm’s net profit margin, the better. So RBL should emphasis to increase its net profit margin.

 Return on Asset (ROA):

Table: 19 Return on Asset (ROA)

Source: Annual Report of RBL & PBL (2008, 2009, 2010)

 After having a careful view on the graph, PBL had maximum return on asset than RBL over three years that means PBL remains more efficient to generate additional ROA than RBL. In 2009, RBL earned 1.17% on each taka of asset investment where PBL earned 1.94% on each taka. But in 2010 RBL’s return on asset silently decreased i.e. 1.15% than 2009 it is not a good sign for a bank, in this year PBL’s return on asset was 2.44%. So the higher the firm’s return on total assets, the better.

Investment to Deposit Ratio

Table: 21 Investment to Deposit Ratio

Source: Annual Report of RBL & PBL (2008, 2009, 2010)

As we know that the ratio measures the bank’s efficiency in promoting its investment products the customer and in using its funds collected from the customers to by measuring the percentage of total deposit that the bank has disbursed as loan and advances and the higher the ratio the higher the banks efficiency and vice-versa. The graph shows that, RBL’s investment remained in better position than PBL last two years that means RBL increased its deposit investment. It is a good sign.

Findings:

Internship is very helpful and essential for the students of Masters of Business Administration because it helps to understand the actual job pattern during the orientation period. I enjoyed every moment of the work. I have learnt a lot but I found some areas that can be developed also.

• Findings of the Study:

Team work is a major strength in general section as well as overall branch.But sometime personel create problem for different reson such as traditional system use, lower salary etc.In this problem easily solution by the use of computer in every system and increase the employee saliary.

 Major banking activities of this branch are related with only one organization, Securities And Exchange Commission Ltd. But it donot use the online system.

 In preparing Bangladesh Bank return for general banking use traditional techniques and same data has to record several times; it is time consuming.To remove this problem the bank use the computerized system.

 This branch follows conventional banking approaches in its lending activities and the amount of loans and advances is not satisfactory in regard to its deposits.

Cumstomer behavior is changeable. So customer satisfaction is the very difficult             part.Sometime customer close their account for  needs high time to withdrawn   money.Because Rupali Bank use the manual system. Rupali bank easily

 solution this problem by the use of computer.

Lack of knowledge to the employee.For this reason they don’t properly conduct the banking activities. Bank easily solution to give the training of the employee.

 Overall Rupali Bank Ltd. is a very good organization. It is in the right way to get    focus of the people to get business. If it can overcome its limitations it will be more efficient in its work and can give more services to the people as well as can earn more profit. At last I again want to thank all the employees and management of Rupali Bank Bank Ltd. for their suggestions, advice and cooperation.

Conclusion And Recommendations:

Conclusion:

The Banking sector in any country plays an important role in economic activities. Bangladesh is no exception of that. As because it’s financial development and economic development are closely related. That is why the private commercial banks are playing significant role in this regard.

From the practical implementation of customer dealing procedure during the whole period of my practical orientation in Rupali Bank Ltd. I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desire level computerized transaction is a must.

This report focused and analyzed on General banking department of Rupali Bank Ltd, Pollobi Branch. Rupali Bank Ltd a popular bank in Bangladesh but its contribution in socioeconomic prospect of Bangladesh has the greater significance.

JBL is attaining offer of special deposit scheme with higher benefits, which is a crying need for long-term position in financial market. Because of the entrance of more banks in the financial market, deposits will splits over. Therefore, it is high time to hold some permanent customers by offering special deposit scheme otherwise in future amount of deposit may come down. To strengthen the future prospect of branch, it is an emergency to collect more deposits.

Recommendations:

• Banking is a service-oriented marketing. Its business profit depends on its service quality. That’s why the authority always should be aware about their service quality.

• To provide quality service to the customer it is necessary to have a trained team of an organization or an institution. For this reason the bank should recruit more fresh, bright and energetic persons such as MBA, BBA, and MBM etc.

• As soon as possible the bank should start more branches in Dhaka city as well as the other cities of the country.

• RBL is offering very medium interest rate of FDR, where as others banks are giving high interest rate than RBL. For this RBL is loosing their customers. So RBL should increase their rate of interest for FDR.

• Now a day’s world is going very fast. Now, most of the banks open online customer service system. Though, Already has introduced on line banking system, but it has problem every day i.e. Jam, slow, Hanging etc. It may be developed on line banking for quick service and customer’s satisfaction.
  • In general banking department it is necessary to implement modern banking process instead of traditional system. It should be more computerized.
    • Account opening form could be more elaborated easily understandable.
    • Evening Banking should be introduced to extend service hour for customer’s

Flexibility.

• One of the business strategies is promotion. Successful business depends how they can promote their products or services to the customer. In this connection to improve the business status bank should introduce more promotional programs.

• The recruitment process of the bank is very lengthy and expensive. The bank should the cost and select the employee by restructuring the lengthy process.

• As the clients are not in favor of introducing system, if possible the rule of introducing to open an account should be changed. Because many people are facing problem to arrange an introducer in the time of opening accounts

• In addition with the present services they should include more services. It is badly needed to provide more services to the customer in order to compete in the market.

• To make exchange process more prompt the authority should use modern communication system such as e-mail, fax, win fax, internet etc

Bibliography:

   Books:

             1)  Chandra Pachanna: Project Management.

             2)  Kothary C.R. : Research Methodology

             3)  Kapoor V.K. : “General Banking Management” and Sons, New Delhi, India.

        4) Panday I.M.-Financial Management (8^th Edition). Vikas publication house pvt.

            Ltd. New Delhi, India.

       5) Shekhar K.C : Banking Theory and Practice.