Human Resource Management (HRM) Issues of Banking Sector of National Bank Limited (NBL)

Human Resource Management (HRM) Issues of Banking Sector of National Bank Limited (NBL)

Chapter – 1

Introduction

1.1 Background of the study

To build carrier as a skilled banker, only theoretical knowledge in the field of banking

studies is not sufficient. An academic course of the study has a great value when it has practical

application in real life situation. So I influenced for proper application of my knowledge to get

some benefit from my theoretical knowledge in my practical life. Such an application is made

possible through internship. When theoretical knowledge is obtained from a course of study at

only the half way of the subject matter, internship implies on other the full application of the

methods and procedures through rich acquired of subject matter can be forcefully applied in my

day to day life. Procedures of practical orientations internship and I get an opportunity to realize

the relevance and usefulness of the learning hence I was placed in National Bank Limited, kawran

Bazar Branch, Dhaka.

1.2 Justification of the Report

Due to market economy the competition among nationalized, foreign and privet commercial

banks and the expecting of the customers become rapidly growing concerning the banking

operation & how customer service becomes more attractive. Reciprocating the sentiment,

commercial banks are trying to elevate their traditional service to a better standard, to meet the

challenging needs. Side by side, these banks have now concentrated their attention towards

diversification of their products for better performance of their existence.

Under the above circumstances, it has become necessary for National Bank Limited a leading

commercial bank, to focus its’ attention towards the improvement of the customer service

through its’ multi-purposeful activities. That is why it is quite justified to make an in-depth study

about its operation and evaluate service provided by this bank and scope for its improvement.

This exploratory study evaluates the functions of National Bank Limited. The study may help

formulating policy regarding the ideas relating to the feeling of the customers & bankers.

Now it is hoped that it may have some significance to National Bank Limited and those who want

to develop National Bank Limited. Since financial area is my preferred area to build my career,

this study will vehemently help me to go forward and improve my career path.

1.3 Why National Bank Limited

National Bank is a bank with difference. It places out most importance on managing credit risk.

The core philosophy of the bank is customer care. It always updates its system and technology

with the accepted best practices. Form the very beginning it is carrying its banking services

including conventional interest based banking Principles with the help of trained, skilled,

knowledgeable and a group of best bankers and management of the country. It is doing its

business that is value based ensuring the social responsibilities of the business. So I think it will

help me to work smoothly, efficiently in my next long marketing career.

1.4 Objectives of the Study

Broad Objectives:

The main objective of the study is to gather practical knowledge regarding banking system and

operation. This practical orientation gives us a chance to Co-ordinate out theoretical knowledge

with the practical experience. The following are of objective for this practical orientation in bank:

Specific Objectives:

To apply theoretical knowledge in the practical field.

To have exposure to the functions of general banking section.

To have exposure to the functions of credit section.

To have exposure to the functions of foreign exchange section.

Observe the working environment in commercial banks.

To study existing banker customer relationship.

1.5 Methodology of the study

It is an exploratory study. The information to be presented in this report has been collected from

both primary and secondary sources & case studies. Primary information were collected from the

executives of the bank & clients of the bank and secondary data were collected from National

Bank Ltd. Training Institute, National Bank Annual Report, Journals and Credit Management

related papers.

SOURCES OF DATA:

While determine the sources of information that would be required for the study. I used both

primary and secondary data to conduct my survey. In addition, I have included my own

observation as a valuable and first hand source while describing the performance and the

evaluation of the bank

# Primary Data:

I have collected primary data by interviewing employees and clients of National Bank Limited.

Primary data were derived through the discussion with the employees of the organization.

Clarifications of issues from different concerned of issues from different concerned officials of

NBL. I have collected primary data in the following way:

Face to face interview with both employees and clients.

By telephoning clients.

Through structured questionnaire.

Designing unbiased and uncontrolled survey.

# Secondary data:

I have used different types of secondary data in my research. Sources of secondary data are

follows:

Internal Sources:

Annual report of National Bank Ltd.

Information regarding NBL Corporate Branch, Dhaka.

External Sources:

Different books and periodical related

Bangladesh Bank Report

Various journal of Bank.

Web site of National Bank Ltd. (www.nblbd.com)

1.6 Limitation of the Report

There were some problems while I conducting the internship program. A wholehearted effort

was applied to conduct the internship program and to bring a reliable and fruitful result. In spite

of having the wholehearted effort, there exit some limitations, which acted as a barrier to

conduct the program. The limitations were ---

Sometimes I was assigned to do some jobs without explaining why this work is to be done. This

situation has created a lot of problems to understand why a specific function is being performed.

Another problem is concerned with data collection. There are shortages of sufficient data for

comparing. Moreover, the bank has supplied me the annual report only for three years.

Learning all the banking functions within just two and half months was really tough.

Another limitation of this report is Bank’s policy of not disclosing some data and information for

obvious reason, which could be very much useful.

Chapter- 2

An Overview of NBL

2.1 History and Heritage

The emergence of National Bank Limited in the private sector was an important event in the

Banking arena of Bangladesh. When the nation was in the grip of severe recession, the

government took the farsighted decision to allow the private sector to revive the economy of the

country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to

revitalize the economy of the country.

National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the

private sector. From the very inception, it was the firm determination of National Bank Limited to

play a vital role in the national economy. They are determined to bring back the long forgotten

taste of banking services and flavors. We want to serve each one promptly and with a sense of

dedication and dignity.

The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury

inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial

Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on

11th May 1983 at Khatungonj, Chittagong.

2.2 Vision, Mission, Strategic Priority & Core Values Vision

Ensuring highest standard of clientele services through best application of latest information

technology, making due contribution to the national economy and establishing their selves firmly

at home and abroad as a front ranking bank of the country have been their cherished vision.

Mission

Their mission is to continue their support for expansion of activities at home and abroad by

adding new dimensions to their banking services which have been ongoing in an unabated

manner. Alongside, they are also putting highest priority in ensuring transparency, account

ability, improved clientele service, as well as their commitment to serve the society through

which we want to get closer to the people of all strata. Winning an everlasting seat in the hearts

of the people as a caring companion in uplifting the national economic standard through

continuous up gradation and diversification of their clientele services in line with national and

international requirements is the desired goal we want to reach.

Strategic Priority: To have sustained growth, broaden and improve range of products and

services in all areas of banking activities with the aim to add increased value to shareholders

investment and offer highest possible benefits to their customer.

Core Values

For our Employees:

Income most caring bank-by proving the most courteous and efficient service in every area of

their business. Promoting the well– being of the members of the staff.

For our Shareholders:

Ensuring fair return on their investment through generating stable profitFor our Community:

Assuming their role as a socially responsible corporate entity in a tangible manner through close

adherence to national policies and objectives and upholding ethical values.

2.3 Goals & Objective of the NBL

To build up strong pillar of capital.

To promote trade, commerce and industry.

To discover strategies for achieving systematic growth.

To improve and broaden the range of product and services.

To develop human resource by increasing employment opportunities.

To enhance asset of shareholders.

To offer standard financial services to the people.

To create congenial atmosphere so that the client becomes interested to deal with

the National bank limited.

To keep business morality.

To develop welfare oriented banking service.

To offer highest possible benefit to customers.

As to its position among its counterparts is held high to let the viewers cast their

very first look at it.

To carry on the business of discounting and dealing in exchange of specie and

securities and all kinds of mercantile banking.

To provide for safe-deposit vaults and the safe custody of valuables of all kinds.

To carry on business as financiers, promoters, capitalists, financial and monitory

agents, concessionaires and brokers.

To act as agents for sale and purchase of any stock, shares or securities or for any

other momentary or mercantile transaction.

2.4 SOWT Analysis :Every organization is composed of some internal strength and weakness and

also has some external opportunity and threats in its whole life cycle. The following will briefly

introduce the strength, weakness, opportunity and threats of the bank.

STRENGTH:

> Superior quality:

National Bank provides its customers excellent and consistent quality in every service. It is of

highest priority that customer is totally satisfied.

> Dynamic:

NBL draws its strength from the adaptability and dynamism it posses. It can quickly adapt to

world class standard in terms of banking services. Branch has also adapted state of the art

technology to connect with the world for better communication to integrate facilities.

> Financial strength:

The bank is financially sound backed by enormous resources base of the foreign exchange

business, as a result customers feel comfortable in dealing with the bank.

> Efficient management:

All the level of the management are solely directed to maintain a culture for the betterment of

quality of service and development a brand image in the market through organization wide team

approach and open communication system.

> State of art technology:

All the branches of the bank are equipped with computer technology for swift delivery of

services.

> Expertise:

The bank’s employees are highly trained and most competent in their own field. Bank provides

their employees both in-house and out of job training.

> In-house Utility:

NBL is free from the ever- disruptive power supply of public sources. The required power is

generated by the bank through generator fed on diesel.

> Excellent Work Environment:

NBL provides its work force an excellent place to work in. the interior decoration was done

exquisitely with the choice of soothing colors and blend of artist that is comparable to any private

bank.

WEAKNES

> Limited Work Force:

The bank has limited resources compared to its financial activities. There are not many people to

perform most of the tasks. As a result many of the employees are burdened with extra work

loads and works late hours without any overtime facilities. This might cause high employee

turnover that will prove to be costly to avoid.

> Problem Delivery:

National Bank is still lagging behind in delivering e-banking and products like ATM card, Q-cash,

credit card are also not ample.

OPPORTUNITIES

> Government Support:

Government of Bangladesh has rendered its full support to this bank for a sound financial status

of the country, as it is becoming one of the vital sources of employment in the country. Such

government will facilitates and support the long-term vision for the bank.

>E- Commerce

Branch also has e-commerce facilities for its clients both in home and abroad. It will facilities wide

area network in between the buyer and the bank and smooth operation to meet the desired

needs with least deviation.

THREATS

> Merger and Acquisition:

The world wide trend of merger and acquisition in financial institution is causing concentration

the industry and competitor are increasing in power in their respective areas.

> Frequent Currency Devaluation:

Frequent taka devaluation and foreign exchange rate fluctuations adversely effect on foreign

exchange business.

> Emergence of New Competitors:

Due to existence of unreserved demand in financial sector, it is expected that more financial

institution will be introduce in the industry very shortly.

2.5 Organizational Structure of NBL

NBL has been carrying on business through its 135 branches and 11 SME / Krishi centers (total

135 service locations) spread all over the country. Since the very beginning, the bank has exerted

much emphasis on overseas operations and handled a sizable quantum of home bound foreign

remittance. It has drawing arrangements with 415 correspondents in 75 countries of the world,

as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first

domestic bank to establish agency arrangements with the world famous Western Union in order

to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate

Bangladeshi nationals. This has meant that the expatriates can remit their hard-earned money to

the country with much ease, confidence, safety and speed.

NBL was also the first among domestic banks to introduce international Master Card in

Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank

has in its use the latest information technology services of SWIFT and REUTERS. NBL has been

continuing its small credit programmers for disbursement of collateral free agricultural loans

among the poor farmers of Barindra area in Rajshahi district for improving their livelihood.

2.6 Organizational Profile

Company Name : NATIONAL BANK LIMITED

Address : National Bank Ltd

18, Dilkusha, Commercial Area,

Dhaka-1000, Bangladesh.

Telephone : 9568493, 9563081-5, 7168929

Fax : Fax: 880-2-9555057

E-mail : [email protected],

Year of Establishment : March 23, 1983

Chief Executive Officer : Moazzam Hossain

(Chairperson)

Web Site : www.nblbd.com

Key Information:

NBL is one of the largest private banks in Bangladesh.

It operates through 135 fully computerized branches ensuring best possible and

fastest services to its valued clients.

The bank has more than 415 foreign correspondents worldwide.

Total number of employees nearly 3,000.

The Board of Directors consists of 15 members.

2.7 Number of Branches 135

Figure: Number of Branches

2.8 Organizational Hierarchy of NBL

Senior Principal Officer

Asst. Vice President

Senior Asst. Vice President

Senior Vice President

Executive Vice President

Senior Executive Vice President

Managing Director

Vice President

Deputy Managing Director

Board of DirectorChairman of the Bank

2.9 Departments of National Bank Limited

It would be very difficult to control the system effectively, if the jobs are not organized

considering their interrelationship and are not allocated in a particular department. If the

departments are not fitted for the particular works there would be haphazard situation and the

performance of a particular department would not be measured. National Bank Limited has done

this work very well. There are:

Human resource Department.

Financial and Administration Department.

Audit & inspection division.

Retail Marketing Department.

Personal Relation Department.

Treasury Division

International Division.

General Services Division.

Computer and Information Technology Department.

Credit Division.

Corporate Affairs Division.

Card division.

Board Audit Cell.

Foreign Exchange Division.

Chapter-3

HRM issues in the Banking Sectors of National Bank.

Asst. Officer

Junior Officer

Officer

Officer Grade-01

Principal Officer

Senior Officer

My internship report is on the Human Resources Management (HRM) issues in the banking sector

in the light of the NBL bank Ltd. So literature review is focused on the HRM terminologies.

3.1 Human Resource Management (HRM):

The set of organizational activities directed at attaining, developing and maintaining an effective

workforce.

3.2 Why is Human Resource Management?

It is not possible to run any organization (whether it is small or large) without people/ Human

Resources. Organization must satisfy its employees to achieve its objectives. It is not possible

without Human Resource Management (HRM).

3.3 HRM is important for:

hiring capable/right employees for the organization

motivating employees

retaining capable employees

taking steps for guarding high employee turn-over

orientation, training and development of the employees

placing employees in the right jobs

maintaining good relation among the organizational members

developing team sprit, cooperation & morale of the employees

delegating the authority & responsibility among the subordinates

controlling administration human resources of the organization

3.4 Major HRM activities are:

Job analysis

Recruitment & Selection

Orientation, Training and Development

Compensation Management

Job evaluation

Performance appraisals

Motivating Employees

Communication

3.5 HRM Terminologies:

Needs analysis

Instruction Design

Validation

Implementation

Evaluation & Follow-up

Job analysis: A systematic procedure for collecting and recording information about the jobs.

Compensation: Compensation is what employees receive in exchange for their work including

their pay and benefits.

Recruitment: the processing of attracting capable individuals to apply for the job that is open.

Internal Recruitment: Internal Recruitment considers current employees as applicants for

higher-level jobs in the organization.

External Recruitment: People are collected from outside the organization to apply for the jobs.

Employment tests: Employment tests are the devices that assess the probable match between

applicants and job requirements.

HRM selection: selection is the choosing capable employees both the job and organization.

Training: Teaching operational or mechanical employees how to do the jobs for which they are

hired.

Development: Teaching managers and professionals the skills needed for both present and

future jobs.

Training and Development process:

Figure: Training & Development process

Training and Development Methods: Assigned readings, behavior modeling, case discussion,

conference, Lectures, on the job training such as job rotation etc.

Job evaluation: An attempt to asses the worth of each job relative to other jobs

Performance appraisals: A formal assessment of how well an employee is doing his or her jobs.

Benefits: Benefits are the things of value other than financial compensation that an organization

provides to its workers.

3.6 Human resource planning

Assess trend in:External labor marketCurrent employeesFuture organizational plansGeneral economic condition

Predict Demand

Forecast internal supply Forecast external supply

Compare future demand and internal supply

Plan for dealing with predicted shortfalls or over staffing

Figure: Human Resource planning

3.7 HRD Department:

The Human Resource Manager currently heads this department. The major functions of this

department are strategic planning and policy formulation for Compensation, Recruitment,

Promotion, Training and developments, Personnel Services and Security. The HR department is

very much concerned with the discipline that is set up by the NBL group. NBL group has got

strict rules and regulations for each and every aspect of banking, even for non-banking

purposes. The Dress Code. All these major personnel functions are integrated in the best

possible way at NBL, which results in its higher productivity. The Human resource officer

monitors the employee staffing and administration activities. The Training officer supervises

Training, development & rotation activities.

3.8 Structure of Human Resource Department

The structure of the HR department is shown below:

Figure: Structure of HRD

3.9 Recruitment, Training and Development

NBL Bangladesh limited follows a standard procedure for recruitment and selection. However

there is no set time period when this recruitment and selection takes place. Each Departmental

head places the requisition for recruitment to the Human resource officer, if any vacancy is

created due to (1) Retirement, (2) Resignation (3) Death, or (4) Extra work load.

The process for the recruitment of personnel for managerial and non-managerial level differs

slightly but the basic steps are same in both the cases. The steps are-

Step- I Initial Screening:

Step- II Screening by Departmental Heads

Step- III Filling of the NBL Job Application from

Step- IVScreening on the basis of SAF

Step- V Initial Interviewed:

Step –VI Selection for written test

Step- VII Written test

Step –VIII Evaluation of test papers

Step –IX Selection of Final interviewees

Step –X Final interview

Step- XI Documentation Check

Step – XII Medical Examination

Step – XIII Probationary Appointment

Step- XIV confirmation

In order to enhance the efficiency of the employees, NBL gives emphasis on the both theoretical

and practical training for its personnel. All the training and development programs are aimed at

two basic reasons - (1) skill development (2) motivation through counseling and persuasion to

change value system. For the top management or senior Managers there is provision for

overseeing training arranged by NBL group. For the mid-level manager or other managerial level

there is provision for regional training courses. Besides, for non-management level there are

training programs arranged in different institution and also with in the organization. For the

operatives, various on the job-training program are conducted within the company.

3.10 Performance Appraisal

The company follows both rating and descriptive systems for the performance appraisal.

Although, the appraisal system is non-participative, the employees are annually assessed by a

joint consultation with their immediate supervisors and departmental heads.

Rating is mainly done on the following factors-

i) Knowledge of work

ii) Accuracy and Reliability

iii) Speed

iv) General intelligence

v) Sense of responsibility and duty

vi) Diligence

vii) Initiative and self confidence

3.11 Welfare Activities

NBL has many well-structured welfare policies for its employees. These include well-structured

wage & salary policy, medical facility, sports & cultural facilities, provision for loans, free uniform

etc. These welfare policies aim at strengthening the relationship of the employees to the

organizations and make them more responsible in their respective positions. The brief description

of the major welfare policies are stated below:

3.11.1 Wages and Salary Administration

NBL follows a well-defined wage structure and fringe benefits for its employees. The wage

structure is updated periodically (Two years terms) by the management.

The major deciding factors are-

a) Profitability of the company

b) Average cost of living in the country due to year to year basis inflationary trend

c) Status of wage earners in similar organization

d) Restrictive conditions given by the government from time to time

e) Financial benefits status in the company

Components of existing wage structure:

a) Base basic structure

b) Home rent

c) Conveyance allowance

3.11.2 Annual Pay Increase

Annual pay increase depends on performance and as per recommendation of the departmental

Heads. Under Normal policy, maximum range is 10% of basic pay but exception to the policy is at

the discretion of the management on case-to-case basis.

3.11.3 Allowances & Benefits

Besides the regular wage and salary NBL provides other financial benefits to the employees.

These includes-

a. Gratuity: 30days basic wage for each completed year of service.

b. Provident fund

c. Group Insurance Scheme

d. Core Leave facilities (27 days annually)

e. Core Leave allowance

f. Medical allowance (up to 20,000 annually)

g. Hospitalization allowances (up to 25,000 annually)

h. Marriage Leave

i. Maternity leave

j. Bonus: (Festival bonus, 13month bonus)

k. Lower rate employee loans.

3.12 HRD & Research Division

There is department for HRD & Research at the head office of the NBL Bank Limited. This

department consists of the following sections:

Human Resource Development

Academy

Research

Library

3.13 Human Resource Development (HRD)

Human Resources Development is focused on recruitment and in-house training for both on the

job and off the job Bank staff members through the Bank’s Academy. NBL Bank Academy – the

oldest institution in the private sector – was conceived of as an in-house training center to take

care of the training needs of the Bank internally.

Academy is fully equipped with a professional library, modern training aids and professional

faculty. Library has about 4941 books on banking, economics, accounting, management,

marketing and other related subjects.

Main training activities consist of in-depth foundation programs for entry level Management

Trainees. Specialized training programs in the areas like general banking, advance, foreign

exchange, marketing and accounts etc. are also organized by the Academy depending on need.

Frequently outreach programs are organized to meet demand for new and specialized skills.

3.14 Training & Development of the employees

At the very beginning, the bank laid a foundation by setting up an academy at Head Office under

Human Resource Division to develop human resource internally. Equipped with a professional

library, modern training aids, professional faculty and other facilities, the Academy of the bank is

a leading one among the banks in private sector. The Academy regularly conducts foundation

courses, specialized courses and seminars in different areas of banking to take care of the

professional needs. In addition, officers are regularly sent to Bangladesh Institute of Bank

Management (BIBM) and Bangladesh Bank training Academy for professional training. Sending

officers abroad for higher training is a regular feature. A Research Department also works in aid

of HRD and other operational areas. The Academy has to its credit the experience of conducting

several courses for the officers of the Bank of Maldives (BML) and Nepal-Bangladesh Bank

Limited. In addition, it built up the training system for the Bank of Maldives Limited.

The academy activities:

Make available skilled and dedicated workforce within shortest possible time by reducing

time required for on-the-job training;

Develop understanding about low and practice of banking through foundation training.

Impart technical skill to the operational level officers through case studies/practical

experience/demonstration/ project visit for efficient operations;

Develop analytical & decision making skills of the officers;

Develop understanding about human/conceptual skill and organizational cultures;

Impart managerial skills to groom future Executives and to keep existing Executives up-

to-date with national and international environment.

3.15 TYPES OF PROGRAMMES

For fresher, Foundation Courses on elementary knowledge of banking are organized. Specialized

Courses on the areas like Credit, Foreign Exchange, Accounts, Inspection, marketing etc. are

meant for officials working in those areas. Senior level courses are run on specific knowledge

area. Certain courses are a blend of different knowledge areas. In addition, certain priority

programs are also being conducted by the Academy. These include program on Anti-Money

Laundering, new skills required to perform new jobs.

1. APPROACHES TO TRAINING

Training conducted by the Head Office:

Head Office uses off-the job training namely Lectures, Conference, Workshop, Management

Game, Role playing, Behavior Modeling and Case Study etc.

Training conducted by the Branch:

Branches use on-the job training namely job rotation, Coaching/ under study approach, direct

supervision by the senior managers. The academy holds need based training courses/ workshops/

seminars etc.

2. ON-THE-JOB TRAINING

Foundation courses have two parts: theoretical training in the Academy and job rotation. The

officers on probation are requested to undergo both in a period of one tear. During this period,

three-phased training program is effective. On theoretical training in, say, General Banking the

officers are required to undergo rotation in General banking activities under the supervision of

the HRDD. Similar process is followed in case of Credit & Foreign exchange. They report to the

HRDD weekly about the progress in rotation when problem-oriented discussion takes place for

better understanding.

3. FACULTY

The Academy has built up a pool of professional trainers within the Bank. In addition to

permanent and professional trainers, speakers are drawn from operational side so that on-the-

job experience may be exchanged and shared. Over and above, speakers from Central Bank,

professional training institutions, universities, research organizations, and Govt. organizations are

also invited to share views and experience. Senior and retired bankers are also regularly invited

to enhance effectiveness of training.

4. LIBRARY

The Academy has a good collection of books, journals, magazines. The books are mainly on

subjects like Banking, Economics, Accounting, Management and Marketing etc. as on

December31, 2006 the library had 5,461 books/titles. The books are issued to the employees

usually for one month. In 1988, the Academy undertook steps to build up Mini Libraries at all the

branches outside Dhaka with a view to helping the employees with books and reading materials

for updating and upgrading their knowledge.

Branches are supplied with books /journals etc. for their Mini Libraries from time to time.

Chapter-4

Product & services of NBL

The products and services can be classifying in three ways and those are:

# Deposit product# Credit product# Cards

4.1.1 Deposit Product

A. Saving product

National Bank Limited offers customers a hassle free and low charges savings account through the branches all over Bangladesh.

Benefits (Condition Apply) > Interest rate of 6.00% on minimum monthly balance.> Minimum balance Tk.1000.> Maintenance charge yearly Tk. 400. >No hidden costs.> Standing Instruction Arrangement are available for operating account.

Account Opening > 2 copies of recent photograph of account holder.> Nominee's Photograph.> Valid photocopy of Voter ID Card.

B. Current deposit

National Bank Limited offers customers current deposit facility for day-to-day business transaction without any restriction.

Benefits (Condition Apply)

>Minimum balance Tk.2000. >Minimum maintenance charge yearly Tk. 800. >No hidden costs. >Easy access to our other facilities.Account Opening

>2 copies of recent photograph of account holder. >TIN certificate. >Nominee's Photograph. >Valid photocopy of Voter ID Card.

C. Term deposit

I. Short term deposit

National Bank Limited offers interest on customer's short term savings and gives facility to withdraw money any time.


> Minimum balance Tk. 2000.> Minimum maintenance charge yearly Tk. 800.> Standing Instruction Arrangement are available for operating account.

Account Opening >2 copies of recent photograph of account holder. > Nominee's Photograph. >Valid photocopy of Voter ID Card.

II. Fixed deposit

National Bank Limited offers fixed term savings that will scale up your savings amount with the time.


>Any amount can be deposited. >Premature encashment facility is available. >Overdraft facility available against term receipt.

Account Opening

>1 copy of recent photograph of account holder. >Nominee's Photograph.

D. Foreign currency deposit:

I. RFC deposit

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. Bangladesh nationals residing abroad or foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees.


>No initial deposit is required to open the account.>Interest will be offered 1.75% for US Dollar Account, 3.00 % for EURO Account and 3.25% for GBP Account.>They will get interest on daily product basis on the credit balance (minimum balance of US$ 1,000/- or GBP 500/- at least for 30 days) maintaining in the account.

Account Opening

>2 copies of recent photograph of account holder. > Nominee's Photograph. >Passport Copy. > ID of residence in abroad.

II. NFC deposit

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. All non – resident Bangladeshi nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing NFCD Account.

Benefits (Condition Apply) >NFCD Account can be opened for One month, Three months, Six months and One Year through US Dollar, Pound Starling, Japanese Yen and Euro. >The initial minimum amount of $1000 or 500 Pound Starling or equivalent other designated currency.

>Interest is paid on the balance maintain in the Account. This interest is tax free in Bangladesh.

Account Opening

>2 copies of recent photograph of account holder. >Nominee's Photograph. >Passport Copy. >ID of residence in abroad.

E. NBL monthly saving scheme

National Bank Limited offers monthly savings scheme for it's retail customers.


>Monthly installments of deposit will be Tk.500/-, Tk.1,000/- , Tk.2,000/- ,Tk.3,000, Tk.4000/- , Tk.5,000/- and Tk. 10,0000 >Account may be opened for any installment and term , which is not changeable.>A person is allowed to open more than one account for different installment in a Branch/ Bank.

Account Opening

>1 copy of your recent photograph.> Nominee's Photograph.

4.1.2 Credit products:

A. Overdraft

NBL offers overdraft facility for corporate customers for day-to day business operations.


>Low charges in overdraft account maintenance.>Facility is available against deposit receipt or mortgage property.>Low interest rate 13-16%.

Account Opening

>Introductory current account.>Others necessary documents as per loan requirement.

B. Lease Financing

National Bank Limited offers leasing facility for clients with easy installment facility.Financing Area >Capital machinery. >Different equipments. >Gas, Diesel generator and Power plant. >Medical equipments. >Lift or elevator. >Information Technology equipments. >Construction equipments. >Consumer durables.Benefits (Condition Apply) >Competitive monthly rental. >Tax benefit. >Fast processing. >Easy handover after leasing period.

C. Housing building

NBL offers home loan facility for purchasing flats or construction of house.


>Financing amount extends upto 70% or Tk. 75, 00,000 which is highest of total construction cost.>Grace period available up to 9 months in flat purchase or 12 months in construction.>Competitive interest rate.>No application or processing fee.

Eligibility

>Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan.

D. Small medium enterprise

NBL offers financial support to small businessmen/enterprise with new products named "Festival Small Business Loan" and "NBL Small Business Loan" has been introduced in the Bank


>Maximum Tk.3.00 lac (Festival Scheme) and Maximum Tk.5.00 lac (Small Business Scheme).>3 Months (Festival Scheme) and 5 years (including 1 month grace period (Small Business Scheme))>Collateral Free Advance.

Eligibility

>Any genuine and small businessmen/ entrepreneurs/enterprise having honesty, sincerity, and integrity.

E. Consumer credit scheme

NBL offers consumer credit facility for retail customers.

Financing items >Electronics consumer products. >Computer or Computer accessories.

Benefits (Condition Apply) >Fast processing. >Competitive interest rate. >No application or processing fee. >Easy monthly installment.

F. Trade finance

NBL provides comprehensive banking services to all. Types of commercial concerns such as in the industrial sector for export-import purpose as working capital, packing credit, trade finance, Issuance of Import L/Cs, Advising and confirming Export L/Cs. - Bonds and Guarantees.

Benefits (Condition Apply) >Low interest rate 13.00%-14.50%. >Minimum processing time. >Low service charges.

4.1.3 Cards:

A. Credit card

NBL Credit Card is accepted in many merchant outlet around the world. Our wide range of merchants include hotels, restaurants, airlines, & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

Benefits (Condition Apply) >Dual Currency Card Facility. >Lowest Rate of Interest. >Lowest Card Fees. >No Excess Limit Charge. >No Hidden Charges.

B. NBL power card

NBL Power Card is the first debit card for which you don’t have to maintain any account with our any branch.

Benefits (Condition Apply) >It is a Pre-paid Card. >Annual / Renewal Fee Tk. 200/- only. >May be issued and refilled from RFCD/FC Account. >Accepted at all VISA POS merchants. >Yearly Tk.100 for enrollment of SMS service.

Account Opening >2 copies of your recent photograph.>Nominee's Photograph.Chapter -5

Other activities of NBL

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 NBL, Kawran Bazar Branch, the following departments are under general banking

section:

Account opening section

Deposit section

Cash section

Remittance section

Clearing section

Accounts section

5.1 Account 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)

► 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.500.

There is no withdrawal limit.

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

Minimum Tk.1000/= balance must always maintain all the time;

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.1000/= is required;

Minimum Tk. 1000/= balance must always maintain all the time;

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 1/4th of the total balance at a time no Profit more or less is

given upon the deposited money for that month.

Profit more or fewer rates are 6.

Fixed Deposit:

The Local Remittance section of NBL Bank ltd Kawran Bazar Branch 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 NBL

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.

Payment of Profit more or less: It is usually paid on maturity of the fixed deposit. NBL Bank

ltd calculates Profit more or less at each maturity date and provision is made on that

“miscellaneous creditor expenditure payable accounts” is debited for the accrued Profit more

or less.

Encashment of FDR: In case of premature FDR NBL Bank ltd is not bound to accept surrender

of the deposit before its maturity date. In order to deter such a tendency the Profit more or

less on such a fixed deposit is made cut a certain percentage less the agreed rate. Normally

savings bank deposit is allowed.

Loss of FDR: In case of lost of FDR the customer is asked to record a GD (general diary) in the

nearest police station. After that the customer has to furnish an Indemnity Bond to NBL Bank

ltd a duplicate FDR is then issued to the customer by the bank.

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 deposit. Profit more or less is calculated based on daily

minimum product and paid two times in a year. Profit more or less rate is 5.50%.

► Account Opening Procedure:

Step 1

The account should be properly introduced by Any one of the following: An existing Current Account holder of the Bank. Officials of the Bank not below the rank of an Assistant officer. A respectable person of the locality well known to the Manager/Sub-Manager

of the Branch concerned.

Step 2Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened.

Step 3

The form is filled up by the applicant himself / herself Two copies of passport size photographs from individual are taken, in case of

firms photographs of all partners are taken Applicants must submit required documents Application must sign specimen signature sheet and give mandate Introducer’s signature and accounts number – verified by legal officer.

Step 4 Authorized Officer accepts the application.

Step 5 Minimum balance is deposited – only cash is accepted.

Step 6 Account is opened and a Cheque book and pay-in-slip book is given.

Table: 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).

6. National ID card.

□ Partnership account



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:



3. Valid copy of Trade License.

4. Rubber stamp.

5. TIN number certificate.

6. Photo Identity.


□ Limited company


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)

□ 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.

5.2 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 NBL Bank ltd like other banks may be classified in to,

a) Demand Deposits

b) Time Deposits

Demand deposits:

These deposits are withdrawn able without notice, current deposits. NBL 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. NBL 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 arise contracts 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, NBL Bank ltd officials remain very much

careful about the competency of the customers.

5.3 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, etc. 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 Payment

>Cash payment is made only against cheque

>This is the unique function of the banking system which is >known as

“payment on demand”

>It makes payment only against its printed valid Cheque

Cash Receipt

>It receives deposits from the depositors in form of cash

>So it is the “mobilization unit” of the banking system

>It collects money only its receipts forms

Table: Function of Cash Department

5.4 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 NBL Bank ltd of remittance of funds are-

Payment order ( PO)

Demand Draft ( DD)

Telegraphic Transfer (TT)

5.5 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. Normally, Bangladesh Bank

performs the Clearing House in Dhaka, Chittagong, Rajshahi, Khulna & Bogra. Where there is

no branch of Bangladesh Bank, Sonali bank arranges this function.

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

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.

Dishonor of Cheque

If the Cheque is dishonored, JBL 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.

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 1st branch wise & then bank wise.

7) Preparation of 1st 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.

5.6 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.

Chapter -6

Finding & Analysis

It is an obligatory requirement of BBA students to be attached to an organization to gain practical

knowledge about management and other related issues. This process is called internship. I have

completed my internship at NBL bank Ltd, Kawran Bazar Branch. It is also mandatory for BBA

students to submit a report based on internship. That is why I have prepared my report, which is

the part of my academic requirement.

It is not possible to run any organization without man. So every organization has HRM activities.

HRM issues in the banking sector. I have focused the HRM issues in the banking sectors in

Bangladesh based on my practical orientation and experience in NBL bank Ltd. Kawran Bazar

Branch. Especially I have focused problems associated with the HRM policy of bank, job

satisfaction level of the employees, compensation, promotion, training, organizational cultures

etc.

6.1 Findings

NBL bank Ltd. has capable workforce to compete with others.

In banks, especially in the senior position, experienced & educated employees are

required.

Remuneration is high in the bank.

Most of the employees are satisfied in the bank.

Working environment in the bank is healthy & fine.

Interest rate is very low for the employees.

Training methods: lectures, assigned reading, & job rotation are used & good.

Employees are very sincere.

Employees have to remain vigilant all times & employees will be liable for their mistakes.

Interpersonal relationship & communication are good.

It is very stressful job.

Bankers sometimes have to work more than eight hours in a day without any

remuneration.

Bonus is also paid on the basis of overall profitability of the banks

6.2 Problems & Solutions

1. Problem: Bank job is very challenging and stressful, especially in the top-level position.

# Suggestion: Organization should take initiative to motivate its employees to work more and to

achieve its objectives and to take steps to remove stress and to manage stress in the job.

2. Problem: Keeping everyone is a very difficult task in the organization.

# Suggestion: It can be solved practicing sincerity and patience among the employees.

3. Problem: Overstaying in the in the workplace is boring and monotonous for the employees.

# Suggestion: Banker should initiate overtime payment or allowances for the employees.

4. Problem: Sometimes, promotion is delay because of certain reasons in the banks.

# Suggestion: Timely promotion will make employees motivated and dedicated, and will increase

the performance of the bank and employees as well.

5. Problem: Marketing activities especially deposit target to open account is a difficult task.

# Suggestion: Bank should increase the Salary/allowance/incentives to do its works, to reach

better position, and satisfy employees.

6. Problem: Risk management is very difficult task in the bank.

# Suggestion: Bankers should properly train the employees to handle risk management issues

effectively & efficiently

7. Problem: Sometimes, employers use nepotism and favoritism at the time of employment and

promotion of the employees.

# Suggestion: Bankers must absolutely eliminate the above from the workplace.

8. Problem: There is no allowance/honorarium for the internship students in the bank.

# Suggestion: Company should initiate internship policy and use internee students to do the

work. Bank should provide some honorarium for the internship students. It will raise the status &

increase positive impression about the institution, and solve the problem of manpower shortage.

Chapter- 7

Conclusion & Recommendations

7.1 Conclusion

Banks play important role in the modern economy; Humana Resources Management (HRM)

issues play an important role in every organization and in the banks. No organization can achieve

its goals or can be good, until or unless it satisfies employees. Human Resources/ organizational

members play the role of the crew who convert goals into the reality. In the banking sector,

highly educated & strategic personnel are required to create a competitive position & to retain it

for the long time. Training, principle of equality, job satisfaction, and career development are

important in the bank. In the NBL bank Ltd. The job satisfaction of the employees is more than

moderate. Most of the employees are satisfied here. Bank is also satisfied with its employees.

Bank’s salary is high but not highest in comparison with other commercial banks. Still

comfortable working environment, good interpersonal relationship, and the benefits of the

employees of the NBL bank limited are also satisfactory. It has been operating since 1983 and it is

a first generation private sector commercial in Bangladesh. It has retained its competitive

position because of its performance and Employees has made the performance of the

origination. Bank’s employees, promotion, & selection will be good and it will get sincere,

qualified, & dedicated employees, if its employee selection procedure remains free from

nepotism, favoritism, and reference in all levels of management. Finally, bank must introduce

modern banking system, adopt new technology, initiate new product, train its employees

properly to do their job and keep employee satisfied. Bank’s performance is good for its satisfied

employees. Bank is on the right track. Bank’s HRM policy is of course better, it has been able to

satisfy its employees.

7.2 Recommendation

NBL Bank Ltd is accomplished with the expert managers and bankers in all level of management

and with a great knowledge of banking; it is not an easy task to find out the difficulties of this

branch. Rather then recommending I would like to give my opinion to improve the banking

service.

Customer service should be on time:

Bank is a service industry and bank renders service to the customer. A proverb goes to in the

banking arena that customer is the King and the deposit is the life of the bank. So bank can

provide dynamic and prompt services to the customers. Customer care is the core point of

banking business. So NBL Bank always tries to provide dynamic and prompt services to the

customers and met up all the customers’ claim as on demand.

Bank should be innovative & Diversified in its Services:

Bank should diversified its banking services and add new products in its services so that it can

attract customers from all group of people. NBL Bank Ltd should be innovative in developing new

banking services, which will attract customers and reduce cost. It can also underwrite shares of

newly incorporated public companies.

Adaptation with the Modern Technology:

Without using modern technology a bank can even think or remaining in the business in near

future. So the bank can decide to adapt with the modern Technology. Use of modern technology

in one sense can increase cost but another sense it increases productivity and attract big clients.

Information system should be developed:

For Information system, branch uses primitive ways. It makes correspondence with the officers

by peon or orderly. In the branch, the Manager has to visit the specific desk to collect various

information. Paper communication is too involved between the officers’.

Employee should be Motivated Time to Time:

In service sector, service provider captured a positive impact on customer mind. Bank as a service

organization should give much attention on their employees who provide service to the

customers. A satisfy employee’s productivity is always higher then the dissatisfied employees. So

NBL Bank should always motivate its employees by providing them financial & others benefit.

Chapter -8Supplementary part

Bibliography

A. Books:

1) B.Block Stanley & A.Hirt Geoffery; Foundation of Financial Management; 2 th Ed; (2008); page-

166-173, 205, 234, 312, 322.

2) S.Rose Peter & C.Hudging Sylvia; Management & Financial Management; 4 th Ed; (2007); page-

55-59, 104-118, 135-155.

3) J.Mcbey Kenneth & Belcourt Monica; Strategic Human Resources Management: 2th Ed;

(2009); Page- 137-143,181-200, 299-312,

B. Website:

www.nblbd.com

C. Others:

1 .Annual Report of NBL Bank Ltd. (2008, 2009)

2. Several Booklets from NBL Bank Ltd.

3. Several Newsletters from NBL Bank Ltd.

4. NBL Bank Ltd. Web site

5. Credit Operational Manual of NBL Bank Ltd. Limited

6. General Banking, NBL Bank Ltd.

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