1st Chapter
Introduction
1.1 Introduction of the report
The primary purpose of this report is to get an idea about the General Banking of Jamuna Bank Ltd. a second generation Bank of the country and make an industry analysis on the banking sector of Bangladesh. Banks are the profit-earning concern. The word bank refers to the financial institution deals with money transaction. Banks collect deposit at the lowest possible cost and provide loans and advance at higher cost. The difference between two is the profit for the bank. The revenue earning sources of the bank are mainly loans and advance. The credit facility can be of two types: funded or non-funded.
The bank is gaining popularity due to its improved quality of services, reliability, product variety, versatility, and flexibility. The branch performs all major general banking activities and it is one of the three foreign exchange services providing branches of Jamuna Bank Ltd.
Funded credit can be expensive for the banks as the bank has to pay interest.
Non-funded includes letter of credit, which is the main source of income for the foreign exchange business.
This report is an attempt to reflect the position of the Jamuna Bank Ltd. in the banking industry procedures, policies and activities with emphasis on foreign exchange business.1.2 Background of the Report
This report is being assigned as a part of the Degree BBA, (Internship). I accommodate my internship program in Jamuna Bank Ltd. For the completion of the course, as an essential part I had prepared Report. This report is being formed on the General Banking Activities of Jamuna Bank (JBL) of Jamuna Bank Limited, Narayanganj Branch. From the very beginning of my internship I have worked on General banking. After few days I was shifted on Accounts Department. For that reason I made my Report on General Banking and customer Relationship evaluation of Jamuna Bank Limited, Narayanganj Branch.JBL was established in 2001 with a dream and vision to become a pioneer banking institution of the country and contribute significantly to the growth of the national economy. The bank was established by leading business personalities and eminent industrialists of the country with stakes in various segments of the national economy. The incumbent Chairman of the Bank is Mr. Md. Sirajul Islam Varosha. Mr. Golam Dastagir Gazi, Bir Protik Director of the Board and Mr. Shafiqul Alam Managing Director of Jamuna Bank.Jamuna Bank Limited is run by a team of efficient professionals. They create and generate an environment of trust and discipline that encourages and motivates everyone in the Bank to work together for achieving the objectives of the Bank. The culture of maintaining congenial work- environment in the bank has further enabled the staff to benchmark themselves better against management expectations. A commitment to takes pride foe bringing women into the banking profession in a significant number for gender equality. At present, 32% of JBLs employees are women that will rise to 45% over the next five years.1.3 Objectives of the program
The main objective of the program is to have practical knowledge of the professional life and to relate the one year theoretical learning to business. More importantly, it was required for the partial fulfillment of the BBA program. Specially, the objectives are in following:-
To analysis the general banking performance in some key areas.
To find out exiting problem of the bank.
To formulate alternative strategies for solving the problem.
To recommend some better solutions for solving the problems.
At last to relate theoretical knowledge with practical experience in several functions of the bank.1.4 Activates performed during internship period
As an internee I had performed numerous activities. My main task was to assist officers and executives in every aspect of their banking activities. It includes the activities like dealing with customer, posting entries, document analysis etc.1.5 Scope of the report
The report is prepared based on the general banking operations of the Jamuna Bank Ltd Narayanganj Branch. These activities involved the following:
Account Opening Department.
Financial Control Department.
Cash Department.
Clearing Department.
Local Remittance.
Locker Service Accounting sections operations etc
But special emphasis is given on the credit activities of the Jamuna Bank Ltd Narayanganj Branch. Bank should review their periodically statement and compare their performance with its competitors to build strong and sound banking institution.1.6 Methodology of the Report
Research Design
This study entails a methodical process from the selection of the topic to the preparation of the final preparation. In this study exploratory research was undertaken to increase understanding of the procedure of Overall general banking system Jamuna Bank Ltd. To perform the study data sources are identified and collected, a questioner is made to resolve some information then they are analyzed, interpreted and presented in a systematic manner.
Questioners develop
For collecting the information I made a questioner of 20 questions. And I give these questioners to some of the top level employee to answer the question. The pattern of question is such type that the answered could give his/her answers just saying yes or no or some special case can give their own opinion.
Survey design
For collecting some crucial information I needed some top level employee who can provide me proper information. Thats why sample size is small. I choose 1 AVP of Jamuna Bank Ltd Narayanganj Branch and the population was 5 employees of different department.
Interview schedule develop
As an AVP they have lots of working pressure. They hardly tried to give me time. Thats why I chose the lunch time and evening time when the pressure of work gets sloth. Data sources
Essential data sources are both primary and secondary. They had identified which were needed to complete and workout the study. To meet the need of more information besides the primary and secondary data the interview of top level employee were necessary.
In order to prepare the report more comprehensive, meaningful & presentable, I have used widely two sources of data & information. The sources are:
1. Primary Sources.2. Secondary Sources
Primary data
How I used those sources for collecting information are briefly discussed bellows:
The primary sources are as follows:
Face-to-face Conversation with the respective officers, executives & also with the staff of the Branch.
Informal conversion with the clients.
Secondary Data
Sources of secondary data are showing below by the following table for easy and quick understanding.
SourcesValidityReliabilityPracticality
Annual Report Of 2013ModerateHighHigh
InternetHighHighHigh
Text bookHighHighHigh
Table: Sources of Secondary Information
Data collection
Primary data were collected through physical inspection. All the process and procedure which saw and I learn by my observation is the primary data. Secondary data are collected from the various relevant books, Bangladesh banks articles, websites etc.
Data analysis Then I classify, analyze and interpret the data
Develop a report
On the basis of the information and my observation the report is made. 1.7 Report Organization
This report is divided in six sections. The following section is an overview of the Report, Second section Discuss the overview of Jamuna Bank Limited. Third sections talk about the Operational Control System of General banking of Narayanganj Branch, Jamuna Bank Limited. Fourth section Discuss about the Knowledge which obtains through the internship period, the last parts talk about the analysis of whole report, the completion of the recommendation and conclusion part.
1.8 Limitation of the report
The report is not free from limitation. This report will only consider Operational Control System of General Banking of Jamuna Bank Limited. There some inadequacy to construct the report. There some information which need for the report to more practical, but those was more confidential for Southeast Bank. This report will only consider Operational Control System of General Banking of Jamuna Bank Limited. There some inadequacy to construct the report. As that was a Branch of Jamuna Bank Ltd, all of the personnel were very busy with their own job. It was very short period for construct an Internship Report. There are some limitations too. They are as follows:-TimeThe researcher gets a short period of time to prepare the report.Employee
In bank all employees are too busy. It is tough to have a break from their tight schedule.
Secrecy
There is a lot of secret matters in the organization. As an intern the researcher cannot reach to those secret topics.Technological aspect
The report does not describe any technological aspect.2nd Chapter
Profile of Jamuna Bank Ltd2.1 Background & History
Name of the Bank : Jamuna Bank LTD.
Business Type: Financial Institution
Year of establishment: 2001.
Status : Public Limited Company
Location : All suitable Place
Reg. Number : C-42780(2139)/2001
Being a 3rd generation Bank of Bangladesh, it focuses on
Remaining with time
Managing change
Developing human capital
Creating true customers value
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 of Bangladesh with its Head Office currently at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000, Bangladesh. The Bank started its operation from 3rd June 2001.
The Bank provides all types of support to trade, commerce, industry and overall business of the country. JBL's finances are also available for the entrepreneurs to set up promising new ventures and BMRE of existing industrial units. Jamuna Bank Ltd., the only Bengali named 3rd generation private commercial bank, was established by a group of local entrepreneurs who are well reputed in the field of trade, commerce, industry and business of the country.
The Bank offers both conventional and Islamic banking through designated branches. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers' needs. Since the need of customers is changing day by day with the changes of time, the bank endeavors its best to device strategies and introduce new products to cope with the change. Jamuna Bank Ltd. has already achieved tremendous progress within its past 10 years of operation. The bank has already built up reputation as one of quality service providers of the country.
At present the Bank has real-time Online banking branches (of both Urban and Rural areas) network throughout the country having smart IT-backbone. Besides traditional delivery points, the bank has ATMs of its own, sharing with other partner banks and consortium throughout the country.
The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday, Saturday and government holiday.
2.2 Logo Update
Very recently Jamuna Bank Limited has changed their look of the logo
2.3 Mission, vision, strategy statement
VISION To become a leading banking institution and to play a vital role in the development of the country.MISSION 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.
STRATEGIES To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund
To strive for customer satisfaction through quality control and delivery of timely services
To identify customers' credit and other banking needs and monitor their perception towards our performance in meeting those requirements.
To review and update policies, procedures and practices to enhance the ability to extend better service to customers.
To train and develop all employees and provide them adequate resources so that customers' needs can be reasonably addressed.
To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion
To cultivate a working environment that fosters positive motivation for improved performance.
To diversify portfolio both in the retail and wholesale market
To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers. Corporate Slogan
Sponsors
The sponsors of Jamuna Bank Limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialists & businessmen having wide business reputation both at home & abroad.Management
JBL is managed by highly professional people. The present Managing Director of the Bank is a forward-looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The Management of the Bank constantly focuses on the understanding and anticipating customers needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers & known for its reputation.
Service and values
Banking Services involving all segments of the society within the purview of the rules and regulations as laid down by the Central Bank and other regulatory. Jamuna Bank Limited offers different types of Corporate and Personal Authorities.
Customer Focus
Integrity
Quality
Teamwork
Respect for the individual
Harmony Fairness&Courtesy
2.4 Structural Position of JBL
Figure 01: (Source: www.jamunabankbd.com)
2.5 History of the Bank
Table1: History of the BankDateEvents
April 02, 2001Incorporation of the company.
June 03, 2001Commencement of banking business.
June 03, 2001First branch opening at Mohakhali.
October 25, 2003First Islamic Banking Branch opened at Nayabazar.
March 28 , 2004First Dividend Declaration for income year 2003 @ 10%.
December 12, 2005Initial Public Offering.
April 12, 2006Listed with Dhaka Stock Exchange.
April 17, 2006Listed with Chittagong Stock Exchange.
June 13, 2010Increased Authorised Share capital to BDT 1000.00 Crore.
2010Jamuna Bank Model Village (Singpara, Thakurgaon)
2011Jamuna Bank Medical College & Hospital.
2013Jamuna Bank Securities Limited ( Brokerage House)
Capital and Reserve (Tk. In Million)Particulars20132012201120102009
Authorized capital100001000010000100004000
Paid up capital4487.544487.543648.402230.091621.88
Reserve and Retained surplus4393.403837.293633.11 4178.102359.00
Table2: Capital and Reserve of Jamuna Bank
Figure 2: Capital and Reserve of Jamuna Bank2.6 CORPORATE INFORMATION OF JAMUNA BANK LIMITED
Table 3: AT A GALANCE
NAMEJAMUNA BANK
CORPORATE SLOGANYOUR PARTNER FOR GROTH
DATE OF INCORPORATIONAPRIL 02, 2001
DATE OF INAUGURATION OF OPERATIONCOMMENCEMENT OF BANKING BUSINESS.
HEAD OFFICEHADI MANSION ,2 DILKUSHA C/A, DHAKA-1000
OFFICIAL LOGO
NAME OF THE PRESENT CHAIRMANMR SHAHEEN MAHMUD
NAME OF THE PRESENT MANAGING DIRECTORMR. SHAFIQUL ALAM
NUMBER OF BRANCHES 98
Number of SME/AGRI Branches08
Number of Islami Banking Branches 02
NUMBER OF EMPLOYES2500
SERVICE PROVIDED Deposit scheme, credit facility and foreign exchange service.
DIVERSIFICATION OF PRODUCT AND SERVICECorporate and Retail banking
AUTHORIZED CAPITALAuthorised Share capital to BDT 1000.00 Crore (present)
Paid up CapitalTk.400 Million
PUBLICALLY TRADED COMPANYDSE & CSE
Number of Promoters 20
Number of Directors
19
Off-Shore Banking Unit 01
Swift Code
JAMUBDDH
Email [email protected]
WEBSITE
www.jamunabankbd.com
2.7 Branches of JBL
There are 98 branches all over the country, among them 51 branches in Dhaka zone, 21 branches in Chittagong zone, 14 branches in Rajshahi zone, 5 branches in Sylhet zone, 6 branches in Khulna zone and 1 branch in Barisal zone. Table 4: Branches of JBLZoneNumber of Branches
Dhaka51
Chittagong21
Rajshahi14
Sylhet05
Khulna06
Barisal01
Total98
Figure3:Branches of JBL2.8 Number of Employees of JBL
JBL believes in team work. They ensure work under highly motivated team spirit and fellowship bond. They provide a healthy workplace for their employees. From start till now the number of employee of the bank are increasing day by day. For example in 2010 the number of Employees was 1511, which increased to 1786 in the year of 2011 and in the year of 2013 the number of employees was 2206.Financial Highlights of JBLFinancial Highlights of JBLParticulars20132012
Gross Revenue14387.8513072.60
Operating Income5635.665285.12
Profit before Tax2284.892080.52
Profit after Tax1135.191042.05
Total Capital9259.808605.28
Shareholders Equity8880.948324.28
Deposits97485.6179623.13
Investment31392.2039118.93
Loans & Advances67669.3854887.03
Premises, Furniture & Fixture2195.052082.03
Total Assets115681.64109678.51
Import & Export117001.80126549.30
Return on Assets after Tax (%)1.011.06
Classified Advance (%)7.599.73
Return on Equity (%)13.2013.35
Liquidity Ratio (%)56.4757.98
Capital Adequacy Ratio (%)11.1012.21
No. of Deposits Accounts525347450918
No. of Advances Accounts2465420607
No. of Employees22062006
No. of Branches (Including SME center)9183
No. of ATM140100
3rd Chapter
Activities of Jamuna Bank Ltd
3.1 Activities in loans and advances Division
Basically this side is for top management level. In the credit department, I did not have that much flexibility to perform my job, which I got in other departments because the entire loan processing activities is performed in a systematic way by the experienced officers. Most of the time it was confidential and I was not allowed to perform.
Jamuna bank is a leading bank in loans advances and it grants loans in various sectors especially in industry and trade and commerce. In the matter of lending purposes this branch follow precautionary policies and sound lending principles especially for project appraisal purposes.
Procedures for sanctioning Loans in Jamuna bank Ltd
Step 1 Request for credit from the client to a branch
Step 2Credit application form filled up by the customer & collection of document
Step 3 scrutinizing the documents
Step 4 Analysis the information
Step 5 preparing the proposal
Step 6 Lending the risk analysis
Step 7 head office approval
Step 8 Sectioning the credit
Step 9 informing the credit, loan disbursement. Supervision and monitoring3.2 Activities in Foreign exchange Division
This is one of the busiest departments of any other department. I have found in the main branch. There are many people working from morning to till evening. MD. Kabir always assisted me if I faced any query. The exporters and importers need to for opening L/C or go for back to back L/C.Task of this division
Issue L/C
L/C advertising & conforming
L/C collection & negotiating Duplicating L/C
Triplicating L/CThe branch needs to do their foreign dealings with the help of any other branch. On the first day of this division, the officers told me about all the term and conditions of this division. he made me understand about how to open letter of credit and back to back L/C what are the requirements of opening L/C, advising and conforming of L/C . This was a great opportunity for me to gather knowledge about impact of foreign trade as well as the policy and regulation of Bangladesh bank
In this division I just discussed with different terms and read some files and documents. because in this department the job were more or-less based on document verification by getting true and perfect information .there are formats of making documents in the computer .the authorized person just changes the numbers & other required things from the format and prepares documents for the customers.3.3 Activities in general banking divisions
General banking department is the heart of all banking activities. it performs the core functions of bank and operates the day to day transitions . it is the storage point for all kinds of transitions of foreign exchange department , loans and advances department and itself.
As I worked in general banking division for few weeks, I have gathered a lot of banking knowledge from this department. Here I have mentioned about some of those activities.
Activities which I performed in general banking divisions
1) Account openings
2) Demand draft Issue (DD)
3) Telephonic Transfer
4) Signature scanning
5) Pay order issue
6) Account enquiry
The main activates of this section are to open different types of account on the request of client. From this section I had performed about how to open different types of account like savings Account, current account, and different types of schemes. I had also performed about how to prepare a salary sheet.
Besides, from this section I had also performed about how to make a customer IC and ID number by using Banks Software, how to scan link and authorize photo and signature. in this section I also knew how to issue add authorized and delivered check book . I also got an idea about how to close an account.
This branch mainly deals with CD, SD, and FDR. I have got a clear idea about the local remittance system of the branch. I had to write voucher of pay order. DD & TT and transfer it to the register book. I saw that, it was very essential for every DD, TT& PO to match the test number .if the test number didnt matches, the authority will cancel that. There is one responsible officer who deals with the daily voucher. End of the day the officers need to receive all the vouchers from every section to keep all the vouchers together. I got the opportunity to become familiar with these facts.4th ChapterGeneral Banking Activities of Jamuna Bank Ltd 4.1 General Banking
Financial organization/ intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms.
General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form Bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to provide the service everyday general banking is also known as retail banking.
General Banking Department usually performs a lot of important banking activities. General banking department is that department which is mostly exposed to the maximum number of bank customers. It is the introductory department of the bank to its customers. All business concerns earn a profit through selling either a product or a service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. The Narayanganj Branch of Jamuna Bank Ltd. has all the required sections of general banking and these sections are run by manpower with high quality banking knowledge. Hence, a touch of rich customer service is prevailing in the branch.
4.2 Function of this Department
G B
E a
N n
e k
r i
a n
l g1FRONT DESK/Accounts Opening Section ( CRM, KYC & TP )
2CASH SECTION
3 it section
4Clearing Section
5Accounts Section
THE FOLLOING WORKS ARE DONE BY THESE SECTION:
Accepting of deposit
Opening of account
Check book issue
Transfer of account
Closing of account4.3 Products of JBL Deposits
Types of Deposit Accounts-
Current Deposits Savings Bank Deposits Fixed Deposits (Term Deposit) Short Term Deposits. Monthly Term Deposits Any other deposits as may be approved/ advised by Head Office. 4.4 Account opening sectionIt is said that, there is no banker customer relationship if there is no a/c of a person in that bank. By opening an a/c banker and customer create a contractual relationship. However, selection of customer for opening an account is very crucial for a Bank.ACCOUNT OPENING PROCEDURE IN A FLOW CHART
Before opening of a current or savings account, the following formalities must be completed by the customer:
a) Application on the prescribed form;
b) The customer is filled up the form;
c) Introduction:
The following persons can introduce an a/c opener:
i. An existing current/savings account holder of that branch;
ii. An officer of that branch (not below the rank of an Assistant Officer.);
d) Furnishing photographs;
e) Banker will supply a set of printed forms required for opening the account, which will normally include:
2 copies of Specimen Signature Cards (SSC);
Check Book Requisition slips;
f) Customer should carefully read and full-fill the application form;
g) Putting specimen signatures in the specimen card.
h) Any special instructions with regard to operation of the account should be noted on the relevant signature card boldly duly authenticated by the a/c holder should be obtained;i) The required Account Number for the new Account from the Account Opening Register should be obtained;
j) Obtain the signature and a/c number of the Introducer on the advice of new accountant the place meant for the purpose and gets the signature properly verified by an Authorized official of the Bank;
k) The Deposit slip properly filled in and signed by the customer;l) Then the new a/c number should be written at the appropriate place of the Deposit slip and mark new Account on both the copies of the deposit slip and request the customer to deposit the money at the cash counter;m) Place the signature cards, Advice of new account, a copy of Deposit slip, photographs and other necessary papers/documents etc. in a file;
n) Obtain approval of the Authorized officer for opening the new account on all relevant papers. While giving approval for opening an account the Authorized official should be satisfied about the Introducer;
o) The Authorized officer on the advice of new A/c and on the specimen signature cards should also attest the signature of the new a/c holder;
p) After approval of the opening of the a/c, get the Chequebook requisition slip signed by the customer;
q) Deliver the cheque book to the customer after properly marking the Account number name and place of the branch on each leaf of the checkbook;
r) On completion of account opening open a file for the new a/c holder and file all relevant papers forms etc.
Application form for current/saving account:
Following are the contents of the application form for opening Savings/current A/C
Name of the Applicant
Fathers name/Husbands name
Present address
Permanent address
Occupation
Nationality
Phone No.
Special instruction for operation of the account
Nominee
Specimen Signature
Introducers Name
Introducers Signature
Ammount deposited
Classification of customers:a) Proprietorship (Sole traders);
b) Partnership firms (Registered or Unregistered);
c) Joint stock Companies (Private Limited companies/Public ltd.);
Documents required for all types of Accounts & Customers:
1. Advise of New Account (in duplicate)
2. Specimen signature cards (in duplicate)3. Account Opening Agreement Form4. Photographs of Account Holders (in duplicate)
5. Deposit Slips Book
6.Cheque book Requisition slips7. Letter of mandate authorizing another person/s to operate the A/c on behalf of the Account holder, where necessary.
*Know Your Client (KYC) Form:
KYC profile Form which fill up the general requirement of information. Under these form such kinds of informations are mentioned:
1. Customer/Account name 2. Account or Reference Number
3. Name of Account Officer/Designated Officer. 4. Nature of Business and Source of funds
5. Who is the actual owner of the Account? 6. Original Passport/Voter ID sighted
7. For Non-resident &Foreigners (reason for opening the account in Bangladesh & Type of visa resident or work). Additional documents are to be obtained for opening some special accounts. Sole Proprietorship:1. Copy of valid Trade License.
2. Recent Passport size Photograph(s) of signatory attested by the Introducer.
3. Sole Proprietorship Declaration.
4. Citizenship Certificate/Photocopy of Passport/Tax Certificate/Voter Card.
5. Transaction Profile.
6. *KYC FormPartnership:1. Copy of Partnership deed of the Firm.2. Firm registration Certificate (if registered).3. List of Partners with their address.4. Copy of valid Trade License.5. Photographs of signatories attested by the Introducer.6. Citizenship Certificate/ Photocopy of Passport/Tax Certificate/Voter I.D Card.7. Resolution of the Partners of the Firm for opening the account..8. Transaction Profile.9. *KYC Form.Limited Liability Public/Private Company:
Certified copy of the Memorandum and Articles of Association of the Company.
Certified copy of Certificate of In Corporation.
Certificate copy of Certificate of Commencement of Business (for Public Limited Company).
Certified copy of From 12 of the company. Photograph(s) of signatories.
List of Directors with Addresses Copy of valid Trade License.
Transaction Profile.
*KYC FormRecent add Foreign Account Tax Compliance Act (fatca) document for account (athorize by customer)
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. It applies from December 2014 for opening any account.
FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
FATCA focuses on reporting:
By U.S. taxpayers about certain foreign financial accounts and offshore assets
By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest
The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.
4.5 Issuing Cheque Book To The Customers
Issue of fresh cheque book
Fresh cheque book is issued to the account holder only against requisition on the prescribed requisition slip attached with the cheque book issued earlier, after proper verification of the signature of the account holder personally or to his duly authorized representative against proper acknowledgment.
ISSUE OF NEW CHEQUE BOOK (FOR OLD ACCOUNT):All the procedure for issuing a new Cheque book for old account is same as the procedure of new account. Only difference is that customer have to submit the requisition slip of the old Cheque book with date, signature and his/her address. Computer posting is then given to the requisition slip to know the position of account and to know how many leaf/leaves still not used. The number of new Cheque book is entered on the back of the old requisition slip and is signed by the officer. CLOSING THE ACCOUNT
Upon the request of a customer, an account can be closed. After receiving an application from the customer to close an Account, the following procedure is followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his a/c less the amount of closing and other incidental charges and surrender the unused cheque leaves. The a/c should be debited for the account closing charges etc. and an authorized officer of the Bank should destroy unused cheque leaves.4.6 Cash SectionCash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash balance are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance. This closing balance is then added to the vault. And this is the final cash balance figure for the bank at the end of any particular day. Cash department in the Jamuna Bank, Narayanganj Branch is authorized dealer of foreign currency, so it can deal with buying and selling of foreign currency.Functions of Cash Department
Cash PaymentCash 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 ReceiptIt 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
4.7 Clearing Section This section receives all kinds of Cheques in favor of the client for clearing as the part of their banking service. After receiving the Cheque it is necessary to endorse it and cross it specially. Basically the Cheques for clearing are of following types:
TypesExplanationClearing Process
Inward Clearing ChequeCheques received from the Clearing House, of our bankPartys A/C ------------Dr.
JBL General Account ------------Cr.
Outward ClearingOBC (Outward Bills for Collection)Cheques of other branch of JBL, Narayanganj within our clearing house areaThese Cheques are directly sent to the respective branch and request them to send (IBCA. When IBCA comes, then customers accounts are credited for the amount of the Cheque.
Clearing ChequeCheques of another bank within our clearing house areaThese Cheques are sent to clearing house via the Principal Branch. When drawee bank honor the Cheques, then the account of Cheque depositors are credited.
Received for Collection: It will be given at the deposit slip.
Received too late for Collection: In case an Instrument is presented for clearance after the Banking hour, then this seal is given at the deposit slip.
Branch Crossing: Authorized officer put branch crossing at the face of instrument for clearance.
Payee A/C credited: When an instrument is received by the clearance section then this seal is put at the backside of the instrument.
Date: Date will place at the face of the instrument along with collection seal. 4.8 Remittance
Remittance is the main part of general banking. The banks receipt and disburse various types of bills through remittance within the country. Remittance is another important sector of Jamuna Bank Limited from where it earns a lot of foreign exchange every year. Remittance means to send or transfer money from one place to another. Against this bank charges some commission from the client. Moreover bank charges commission on the basis of the bills amount. Mainly there are two types of remittances they are Inward remittance and Outward remittance. a. Inward Remittance: Inward remittance deals with funds from overseas. It can be i. Cash remittance through TT (Telegraphic Transfer) ii. Remittance due to export
b. Outward Remittance: Outward remittance is fund remitted to overseas on behalf of performed in the Following way:
i. Telegraphic Transfer
ii. Demand Draft (DD)
iii. Mail Transfer
iv. Remittance due to import. Types of Remittance are: PO (Pay Order)
TT (Telegraphic Transfer) DD (Demand Draft) IBC (Inward Bills for Collection)
OBC (Outward Bills for Transfer) Money Transaction:Sending/Transfer money from one place to another place for the customer is another important service of banks. And this service is an important part of countrys payment system. For this service, people, especially businessmen can transfer funds from one place to another place very quickly. Demand Draft
Pay Order
Online Transaction4.9 Accounts SectionAccounts 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. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. 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.Daily Task:
The routine daily tasks of the Accounts Department are as follows, -
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.
Recording inter branch fund transfer and providing accounting treatment in this regard.
Checking whether all the vouchers are correctly passed to ensure the conformity with the Activity Report; if otherwise making it correct by calling the respective official to rectify the voucher.
Recording of the vouchers in the Voucher Register.
Packing of the correct vouchers according to the debit voucher and the credit voucher. Periodical Task:
Preparing the monthly salary statements for the employees.
Publishing the basic data of the branch.
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 weekly position for the branch comprising of the breakup of sector wise deposit, credit etc.
Preparing the weekly position for the branch comprising of denomination wise statement of cash in tills.
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.
Preparing an Extract which is a summary of all the transactions of the Head Office account with the branch to reconcile all the transactions held among the accounts of all the branches.5th Chapter
Human Resource Department Policy5.1 Selection Process
The selection process of The Jamuna Bank Limited is designed to identify the right fit for a position.
At JBL, we pursue the following selection process:
6th Chapter
Findings & Recommendation6.1 Findings
Management of the Bank is to work for creation of conceptual framework covering core elements of developed Model Marketing Plan (MMP) of Jamuna Bank Limited to face the competition and changes in the banking industry into the new millennium for sustained growth of business / profitability of the bank. To accomplish the tasks of formulation of MMP focus should be made on the following issues are the findings of this report.
Major Findings
Business philosophy that identifies current and future opportunities, defines magnitude and quantum, determines target markets and cluster, and decides on products, services and programmers to secure entry to markets for economic and financial gains were made. The aim of planned marketing efforts is to understand customers and to ensure that offered products and services adapt to targeted customers needs perfectly. The marketing plan to be designed to perform tasks of stimulating demands for Banks products and services to influence the level timing and composition of demand help customers consummate their business objectives.
Executives and officers working at various levels in the Bank to be groomed with clear understanding of the entire range of products and banking services ensuring quality of services help accomplish set target of customers satisfaction. The techniques those to be pursued for transforming of strategies into action through Model Marketing Plan (MMP) to achieving the goal of higher customer satisfaction along with sustained growth of profitability for the Bank are :
Proper grooming of employees through classroom and hands on training.
Receive the customers with smile
Improve office atmosphere to give customer friendly feeling
Provide intimate attention to your customers needs
Customers convenience will receive priority
Evaluate customers needs in proper perspective and shortcomings be explained logically.
Time consumed in servicing customers is minimized.
Deeply familiarize customers with benefits of offered financial services.
Use modern tools and techniques and evaluate customers credit needs professionally.
Decision making process should be free of ambiguity and be time conscious. Alternative solutions should be explored and evaluated. Develop communication skills.
Develop effective management information systems (MIS).
Diagnose macro and micro environment niches and explore the prospects. Help new entrepreneurs to formulate business plans. Fresh entrepreneurs should be provided with counseling. Understand customers funding needs and create Total Solution. Monitoring of disbursement and need based use of loans. Recycling of credit ensuring recovery as per repayment schedule. Ensure reasonable spread and return on assets. Build good value for sponsors and shareholders.
Influence of employee morale and emotional needs as associated with delivery for services cannot be ignored towards improvement of the quality of services. The contribution of the following persuasive techniques is to be motto of Jamuna Bank Limited under the MMP to appease the human apathy towards goal congruence. Attend problems of subordinates with tender care.
Inter-personnel relationship should be cordial.
Display positive attitude to problem solving.
Practice group participation in problem solving.
Innovative ideas should be nurtured.
Organization goals should be comprehensive and visible.
Update banking knowledge by organizing training programmers and seminars.
Motivate subordinates through leadership skills.
6.2 Recommendation
Improvement of the HRD
The HR department of the bank is one of the weakest areas and many of the human resource development policies and practices are not being followed or implemented. Though, there has been performance appraisal for the employees but still it is lying idle and no action has been taken. The management should immediately apply the performance appraisal system and take appropriate actions on the basis of that appraisal. All sorts of promotions or other benefits should be based on the report of the performance appraisal. The traditional method of considering years of work experience as the criteria should be changed and rather the new method of looking at the output, productivity and quality of the work should be considered. The HR wing has to be more active rather than maintaining administrative duties. Other than the head of this division, the staffs in this wing are incompetent for this position. More qualified and skilled HR professional should be recruited for this department for the future growth of the HR in JBL. The HR department should be gradually extended at the branch level as the bank is expanding so that each branch has a HR official.
Better recruitmentJBL must pursue a strong and an effective recruitment system so that the right people are recruited at the right job. As already mentioned earlier, other than the Probationary Officers and Management Trainees there are major flaws in the recruitment of the staffs from other banks during the embryonic stage. But now as the bank is expanding, it must focus on attracting, getting and retaining qualified personnel for filling up its positions. It is worth spending more on attracting qualified human resources rather than getting the wrong people in the wrong positions.
Stop Reference Appointment
JBL management and particularly the Board of Directors must change the system of appointing people by giving their reference. It has been deeply observed that most of the reference appointees are not up to the standard and have a poor performance. For the sake of the banks future and further strengthening the quality of work force, this tendency to appoint people on reference must be stopped. It may not be absolutely possible to eliminate the reference appointment system as it is a local private company., but still the tendency can be reduced to a certain extent if bold steps are undertaken by the management and the Board of Directors.
Improvement of quality of service
Like in many other emerging market economies, commercial banks in the Bangladesh economy are to face an increasing competition for their business in the coming days. Their business will no longer remain easy as they had earlier. The real change in the banking business has started to come with the govt.s decision to allow the business in the private sector in the middle of the eighties.
Branch Expansion
For expanding geographically the bank should open up new branches in strategically important places. The bank can open branch in Mirpur 1, Malibag, Rampur, Noakhali, Jatrbari, Sonargaon, Savar, Barisal, Bogura, and Dianajpur. Some of its rivals already entered in some of these regions and some are on the way, so the bank should expand in these regions without making any delay. Before entering into a new market the bank should do extensive market research.
Delegation of authority
As a part of introducing participate management system in the organization, there should be gradual delegation of authority in order to develop future leaders with in the organization. Authority should be delegated gradually to a certain extent at the branch level for speedy disposal of financial matters and providing faster services. Moreover, in a decentralized organization there will be both top down and bottom up communication and therefore the communication channel within the company becomes stronger. The top management also comes to know better ideas from the lower level and many ideas from there can be implemented for the development of the bank.Promotional Decision
Promotional forms an important component of any marketing campaign. The intangible dominant product services are no easily advertised. The intangible is difficult to depict in advertising whether the media is print, TV or radio. Services advertising should thus emphasize tangible cues that will help the customers understand and evaluation the service. The following tips may be taken in this connection. They introduce other promotional items these are EID card, New Year card for the entire customer. And other type of special gift like moneybag, wall clock, pen for only special clients.
Organization Advertising
The branch can use advertising to promote principally the name of organization and keep it in the forefront of customers consciousness, without referring in depth to any particular service. The bank can use the type of advertisement by creating its name, which is designed to distinguish itself in the mind of the customer from its competitors and refer it, more attractive.
Service Awareness
There is a considerable degree of ignorance as to the range of specific services offered by the bank. For this reason the brand should pursue advertising strategy aimed at rising the general level of awareness of the range of services available giving some easy understandable details or the particular item.
Service advertising
Can advertise its specific services either to promote and establish new products for to maintain the success of existing ones. Set Advertisement of established services such as MSS (Monthly Saving Scheme). SSS (Super Saving Scheme) etc. can be undertaken in response to the growth of competition from other banks and financial institutions.
Service Differentiation
Benefit to customers-customers is the ultimate beneficiaries of the services. So there may be some service which the customers are aware of but do not know their actual benefits. So the branch can put its advertising effort to arouse the need in respect of particular service.7th Chapter
Conclusion7.1 CONCLUSION
Modern Commercial Banking is challenging business. The rewards are modest; the penalties for bad looking are enormous. Commercial Banks are great monetary institutions, important to the general welfare of the economy more than many other financial institutions. There is a great supportive role of banking system in human society. If is vitally important for a country to ensure quality banking service for flourishing the economic sector and enhancing the overall business and manufacturing environment of the country that will ultimately accelerate the national growth wheelModern Commercial Banking is challenging business. The rewards are modest; the penalties for bad looking are enormous. Commercial Banks are great monetary institutions, important to the general welfare of the economy more than many other financial institutions.
Jamuna Bank Ltd is an emerging bank. The bank has only completed seven years of banking services. All the initial stages of business, every institution has to go through the difficult path of survival. To achieve the confidence of the customers, the bank must execute some improvements in its marketing and operational areas-JBL should try to win customers with user friendly modern technologies. The bank should redesign all sorts of banking procedures to be more user-friendly, attractive and impressive.
Jamuna Bank Limited started with a vision to be the most efficient financial intermediary in the country and it believes that the day is not far off when it will reach its desired goal. JBL looks forward to a new horizon with a distinctive mission to become a highly competitive modern and transparent institution comparable to any of its kind at home and abroad. 7.2 Bibliography
Jamuna Bank Limited home page 2013,viewed 12th September 2013,
History of banking from world perspective. Available at
http://en.wikipedia.org/wiki/History_of_banking Annual Report of Jamuna Bank Limited (2013)
www.wikipedia.org.
The official web site of Jamuna Bank Limited www.bangladesh-bank.org.
www.thefinancialexpress-bd.com.
Jamuna Bank Ltd Branch Manual 2013.
Statement of Principal Branch, Jamuna Bank Limited.
Bangladesh association of bank (2010-2011-2012)performance highlights of members bank, yearly published.
Bedi, H.L. Practical Banking Advances UBS publishers distribution Ltd.new Delhi.
Hai, M. Enamul, Bank Management Jane publishers, January 1996.
Edward w.reed and edward K Gill Coomercial Banking prentice Hall, Nercy, 1989.7.3 Appendix
Customer Satisfaction: A Study on Jamuna Bank Limited.
Dear Respondent,
I, the student of Business Administration of SEU University Bangladesh, am going to conduct a research entitled Customer Satisfaction: A Study on Jamuna Bank Limited. For this regard your kind cooperation is highly appreciated.
Please read the following question carefully and answer it.
QUESTIONNAIRE Identification of satisfaction level of customer of Jamuna Bank Limited1. Name
2. Age limit 21-30 30-40 41-50 Above 50
3. Education:
a) SSC b) HSC c) Graduate d) Post Graduate e) Others
4. Profession:
a) Private Serviceb) Govt. Service c) Business d) Student
e) Housewifef) Others....
5. Income Range (monthly BDT):
a) Below 10,000b) 10,000-20,000c) 21,000-30,000d) Above 30,000
6. What type of facilities do you take from this bank?
Current Accounts Savings Accounts Fixed Deposit
Pay order/ Demand Draft Term Loan SOD
Reliability
7. Jamuna Bank Limited provides services as promised to the customers.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
8. Jamuna Bank Limited shows a sincere attention in solving your problem.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
9. The bank charges reasonable service fees for the service they perform.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
Responsiveness
10. The employees in the bank give you prompt service.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
11. Employees in the bank are always willing to help you.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
Assurance
12. The behavior of employees of Jamuna Bank Limited generates confidence in you about service quality.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
13. Employees of the bank are always courteous with you.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
14. Employees of the bank have the knowledge to answer your queries.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
Empathy
15. Jamuna Bank Limited shows attention to you individually.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
16. The employees of the bank understand your specific needs.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
Tangibles
17. Jamuna Bank Limited has modern equipment.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
18. The Banks physical facilities are visually appealing.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
19. Employees of Jamuna Bank Limited appear smart.
a) Strongly
Agreeb) Moderately Agreec) Agreed) Moderately Disagreee) Strongly Disagree
20 Comment.Thank you for your kind cooperation.
Officer
First Executive officer
Executive officer
Senior Executive officer
First Assistant Vice President
Assistant Vice President
Senior Assistant Vice President
Vice President
Senior Vice President
Chairman
Board of Director
Advisor
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
First Officer
Assistant Officer
Branches of JBL
(Taka in BDT Million)
EMBED Excel.Chart.8 \s
Accounts Opening Section
Accepting of Deposit
Opening of Account
Cheque book Issue
Transfer of Account
Closing of Account
3. For individual introduction is needed by an account holder
2. He/She is required to fill up the specimen signature card
1. Applicant fills up the relevant application form in the prescribed manner.
4. The authorized officers analyze the introduction and examine the documents submitted.
7. ACCOUNT IS OPENED.
5. Issuance of deposit slip and the deposit must be made in cash. No cheque or draft is acceptable to the Bank.
6. After depositing the cash one cheque book & pay- in-slip book is issued.
REQUISITION SLIP filled PROPERLY ALONG WITH THE CHEQUE BOOK NUMBER.
BANKER VERIFIES THE SLIP
BANKER ISSUES NEW CHEQUE BOOK IF EVERY THING IN THE RIGHT FROM
ENTER THE NEW CHEQUE BOOK NUMBER IN THE REGISTER BOOK AGAINST THE SPECIFIC CUSTOMERS NAME
_1492371360.xlsChart1
100004487.544393.4
100004487.543837.29
100003648.43633.11
100002230.094178.1
40001621.882359
Authorized Capital
Paid Up Capital
Series 3
Capital and Reserve
Sheet1
Authorized CapitalPaid Up CapitalSeries 3
2013100004487.544393.4
2012100004487.543837.29
2011100003648.43633.11
2010100002230.094178.1
200940001621.882359
_1492371357.xlsChart1
472214431
Dhaka
Chittagong
Rajshahi
Sylhet
Khulna
Barisal
Number of Branches
51
21
5
6
Sheet1
ZoneZone
Dhaka47
Chittagong22
Rajshahi14
Sylhet4
Khulna3
Barisal1
