internship report on ific bank ltd

7/21/2019 Internship report on IFIC Bank Ltd.

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1.1. Introduction

1

CHAPTER 1

ORIENTATION OF THE STUDY



Practice makes a man perfect- the proverbs tell us about to practice those procedures that we

have learned throughout the course. Theoretical knowledge does not highlight the reality as

clearly as practical knowledge. Theoretical knowledge is a guideline but practical knowledge is

experience oriented. But both of them are equally important.

This report comprises a brief study on “!" Bank #td.$ The report is distributed in many parts

according to nature and requirement of organi%ation and according to the instruction.

The purpose of study is to develop skills through learning various aspects of organi%ation. The

study enables to get command on bookish knowledge through practical approach and to

understand the difference in both approaches.

1.2. Origin of the Reort

The report is intent for the term paper of the course &Banking #aw and Practise &.n the process of making term paper for the course our group 'Prefects( collected information from !" bank.

This report originates to fulfill the requirement of studying BB) Program at *niversity of

+haka. This program has been designed to facilitate the students with basic theoretical and

practical knowledge. ,ince the report making is an integrated practical and theoretical method

of learning this program is required to have practical exposure in any kind of bank.

1.!. "#c$ground of the Stud%

2



Banks are the life-blood of modern economy. Banks are established to earn profit and help

economic and financial activities so as to help economic development of a country. n such a

context the main business of Banking is to take deposits from customers and sanction credit to

the borrowers. Thus the Banks act as financial intermediaries. )s a service industry the Banks

are customers oriented. "ustomers are the driven power of a Bank and it earns profit by serving

customers. n general he who has an account in a Bank may be treated as a customer.

n broad sense customers may be seen from the two wings +epositors and Borrowers. Beside

these other short-term served customers may exist in a Bank. /owever as the Banking area is

very hard and competitive so in order to survive and successfully compete with other Banks a

Bank not only have to serve but have to nicely and effectively serve its customers. 0ow in

Bangladesh more than 12 scheduled Banks are operating their activities. )mong those the !"

Bank #td. has positioned well 3 would be able to create a strong confidence in banking sector.

!" Bank #td is one of the leading private banks in Bangladesh. !rom its inception it has been

playing a very strong role in the overall development of the country. 4ur task was to provide a

report on the products and services of the bank. ,o we decided to observe the functions and

performance of this section. 5e have also tried to give so much recommendation for the

betterment of the performance of 6eneral Banking ,ystem of !" Bank #td.

1.&. O'(ecti)e of the Stud%

1.&.1 *ENERA+ O",ECTI-ES

To fulfill the specific requirement of the course.

To gain practical experience and view the application of theoretical knowledge in the real

life.

1.&.2 SPECIFIC OO",ECTI-ES

To know the relevant rules regulations deposit loan schemes credit policies of the bank.

To gather knowledge about banking activities

To identify the documentation 3 guideline for the potential credit and deposit customers.

3



1./. 0ethodoog% of the Stud%

!or preparing this report we have undergone group discussion collected data and sent some

questionnaires to the selected 4fficers and interviewed with some of them. 5e also studied

different circulars and files of the bank.

5e hope these criteria will be enough to find out different picture of financial performance of the

selected bank '!" Bank(.

1. SOURCE OF DATA

5e have emphasi%ed on the practical observation though this report is prepared based on primary

and secondary data. 5hile preparing the report we have taken information from the following

sources7

1..1 PRI0ARY SOURCES

4bservation of banking activities.

"onversation with the respective executives 3 officers of the Bank.

Practical work exposures from the different desks of the !" Bank 0ayapaltan Branch.

1..2 SECONDARY SOURCES

Periodicals published by Bangladesh Bank.

5ebsite of !" Bank #td.

)nnual report of the !" Bank.

+ifferent lending forms and schemes used by the Bank.

4



1.3 +i4it#tion5 of the Stud%

This study is sub8ect to the following limitations

!irst of all the time limitation it is not possible to gather all the information about the

banking activities in a month time.

+ifficulty in gaining accesses to financial sector.

0on-availability of the most recent statistical data.

,ome secrecy was maintained in the bank and was not exposed to activities.

5



2.1. "#c$ground of the "#n$

6

CHAPTER 2

O-ER-IE6 OF THE

OR*ANI7ATION



nternational !inance nvestment and "ommerce Bank #imited '!" Bank( is a banking

company incorporated in the People9s :epublic of Bangladesh with limited liability. t was set up

in ;<=> as a 8oint venture between the 6overnment of Bangladesh and sponsors in the private

sector with the ob8ective of working as a finance company within the country and setting up 8oint

venture banks?financial institutions aboard. n ;<@A when the 6overnment allowed banks in the

private sector !" was converted into a full-fledged commercial bank. The 6overnment of the

People9s :epublic of Bangladesh now holds A.=1C of the share capital of the Bank. +irectors

and ,ponsors having vast experience in the field of trade and commerce own @.>C of the share

capital and the rest is held by the general public.

2.2. "o#rd of Director5

Ch#ir4#n

0r. S#4#n F. R#h4#n

Director5

0r. 0oh#44#d +utf#rR#h4#n

0r. 0oniru I5#48indeendent9

0r. S%ed Ani5uHu:8indeendent9

0r. 0oh#44ed N#%e4 S%ed8indeendent9

0r. ,## Ah4ed

0r. A.R.0. N#;4u5S#$i'

0r. Ari(itCho<dhur%

0r. 0. Sh#h A#4S#r<#r80#n#ging Director #nd CEO9

0#n#ging Director

0r. 0 Sh#h A#4S#r<#r

7



2.!. -i5ion of the "#n$

The !" Bank wants to be the preferred service provider through innovative sustainable and

inclusive growth and deliver the best in class value to all stakeholders.

2.&. 0i55ion of the "#n$

Their mission is to provide service to our clients with the help of a skilled and dedicated

workforce whose creative talents innovative actions and competitive edge make their position

unique in giving quality service to all institutions and individuals that they care for.

They are committed to the welfare and economic prosperity of the people and the community for

!" derive from them their inspiration and drive for onward progress to prosperity. n an

intensely competitive and complex financial and business environment the !" particularlyfocus on growth and profitability of all concerned.

2./. Hier#rch% of the Org#ni;#tion

8



2.. Product5 #nd Ser)ice5

9



!" Bank #imited offers various products and services. The bank has highly

qualified professional staffs that have the capacity to manage and meet all the

requirements of the bank. Dvery account is assigned to an account manager who

personally takes care of it and is available for discussion and inquiries whether on

writes telephones or calls. /ere is a diagram of product and services of !" Bank

#td.7

2.3. DEPOSIT PRODUCT AND +OAN SCHE0ES

10



Deo5it Product +o#n 5che4e5

"urrent +eposit )ccount '"+( ,ecured 4ver +raft ',4+( 6eneral

,aving +eposit ',B( /ouse Building #oan ',taff(

,hort Term +eposit )ccount

',T+(

Term #oan 'ndustrial(

!ixed +eposit :eceipt '!+:( "onsumer "redit ,cheme '"",(

Pension ,aving ,cheme 'P,,( Dasy #oan 'Eeans secured personal loan to

meet personal financial requirement(

Eonthly ncome ,cheme 'E,( "onsumer +urable #oan

,pecial )ccount Dducation #oan

Thikana or /ouse Building #oan

!lexi #oan

Pesha8eebi #oan

)uto #oan

,ED #oan

2.=. Achie)e4ent of the "#n$

!" Bank is listed with +haka 3 "hittagong ,tock Dxchange #imited as a publicly

quoted company for its “) "lass$ ordinary shares.

11



The Bank maintained a "apital )dequacy ratio of ;A.12C against minimum "apital

:equirement of ;2C as per B),D# .

"redit :ating7 The Bank is rated “)$ in the long term 3 “,T-$ in the short term.

!" got Eoney 6ram )ward-22@ for Dxcellence in "ustomer ,ervice.

2.>. C#it# #nd Re5er)e

The authori%ed capital of the !" Bank was B+T 2222.22 million and the paid-up capitalstood at B+T A@2>.1 million as on A; +ecember 2;A. ) break-up of the capital 3 reserves

inclusive of statutory reserve for the fulfillment of provisions under the Bank "ompany )ct ;<<;

is given below7

0ature of "apital 3 :eserve B+T in Eillion

Paid up "apital A@2>.1

,tatutory :eserves AA=F.2@

4ther :eserve ;@=.;A

:etained ,urplus ;=A2.;

Total "apital 3 :eserves <2<=.@1

T#'e ! Tot# Re5er)e5

2.1?. Profit#'iit% Po5ition of the "#n$

12



Profitability position of the bank for last 1 years is given below7

13



2.11. Tot# A55et5 Po5ition of the "#n$

Total )ssets position of the bank for last 1 years is given below7

2.12. Tot# i#'iit% @ 5h#rehoder e:uit%

o5ition of the '#n$

14



2.1! Credit R#ting of IFIC "#n$

"redit rating )gency of Bangladesh #imited '":)B( has affirmed the rating of !" Bank #imited based on audited financial statements as on A;st +ecember 2;A and other relevant

information as well as some operational updates of 2;F. ":)B /as retained both long term and

short term ratings same last year.

R#ting 2?11 2?12 Definition of R#ting

#ong

Term

)) )) "ommercial Banks :ated “))$ have very

strong "apacity to meet financial commitments.

They differ from the highest-rated "ommercial

Banks only to a small degree.$))$ is 8udged

to be of very high quality and is sub8ect to very

low credit risk.

,hort

Term

,T- ,T- "ommercial Banks rated ,T- are considered to

have strong capacity for timely repayment and

are characteri%ed with commendable position in

terms of liquidity internal fund generation and

access to alternative sources of fund is

outstanding.

15

IFIC Bank Ltd.

Rating Reafrmed

AA



16

CHAPTER !

PRODUCTS AND SER-ICES OF

IFIC "ANB +TD.



!.1 INTRODUCTION

!.1 INTRODUCTION

+uring collecting information from !" Bank #imited at 0aya Palton Branch we studied their

6eneral Banking procedures. 6eneral Banking is the starting point and main function of all the

banking operations. t is the department which provides day-to-day service to the customers. t is

associated with financial transactions to facilitate customer service. /owever there are other

departments like - clearing financial control and accounts computer to give both of them back

office support and to maintain regular and accurate records.

FUNCTIONS OF *ENERA+ "ANBIN*

This department maintains following functions7

• )ccounts opening section.

• "ash section

• Test arrangement

• !+:

• :emittance section.

• "learing section.

• )ccounts section.

• Dstablishment.

ACCOUNTS OPENIN* SECTION

This section opens different types of accounts for their valued customers. ,election of customer

is very important for the bank because bank9s success and failure largely depends on their

17



customers. f customers are bad they create fraud and forgery by their account with bank and

this destroys the goodwill of the bank. ,o this section takes extreme caution in selecting its

valued customer.

!.2 TYPES OF ACCOUNTS

)ccounts can be classified into two types7

!.2.1 CURRENT ACCOUNT 8CD9

"urrent account is convenient for the business persons who need frequent transaction. n case of

"urrent )ccount no interest is given to the account holder. t is a running and active account.

There is no restriction on the number and the amount of withdrawals from a current account.

4verdraft facility is provided for the customer.

Initi# deo5it TG. 1222

0#inten#nce fee TG.122 'half yearly(

Co5ing fee TG. 22

18



Docu4ent#tion Prorietor5hi

)ttested photocopy of Trade #icense Two copies of passport si%e photographs of account holder

,igned and rubber stamp seal of the client

Photocopy of 0ational + "ard.

Docu4ent#tion P#rtner5hi

)ttested photocopy of Trade #icense

Two copies of passport si%e photographs of account holder

Photocopy of 0ational + "ard

)ttested photocopy of Partnership deed

Docu4ent#tion Pri)#te +i4ited Co4#n%


Two copies of passport si%e photographs of directors


"ertified copies of Eemorandum and )rticles of )ssociations

#ist of directors as per return of Hoint ,tock "ompany with signature

:esolution for opening account with the bank

Docu4ent#tion Pu'ic +i4ited Co4#n%


Two copies of passport si%e photographs of directors


"ertified copies of Eemorandum and )rticles of )ssociations

19



"ertificate of ncorporation

"ertificate of "ommencement of business and copy of T0 cert !" ate

#ist of directors as per return of Hoint ,tock "ompany with signature

:esolution for opening account with the bank

Co5ing of Current Account

) customer&s account with a banker may be closed for the following circumstances7

'a(The customer may inform the banker in writing of his?her intension to close the

account.

'b( The banker may itself ask the customer to close the account when the banker finds

that the account is not profitable for the bank.

Then bank and customer perform some formalities to close the account.

!.2.2 SA-IN* DEPOSIT ACCOUNT 8S"9

,aving )ccounts are especially for the middle-income groups who are earning limited income

and have the tendency to save to meet their future need and also to earn some interest on their

savings. Both the elements of time and demand deposit are present in this account.

Intere5t r#te 1.1C Initi# deo5it for urban-TG.1222 and for rural-222.

Co5ing fee TG. 22.

Docu4ent#tion5

For oening # 5#)ing5 #ccount the5e docu4ent#tion5 #re re:uired

Two copies of passport si%e photographs

Photocopy of 0ational + card

20



ntroductory reference.

4ne copy photograph of 0ominee with the photocopy of 0ational + card

Co5ing For4#itie5 of S#)ing5 Account

!ormalities for savings account opening and closing are same as current account.

!.2.! SPECIA+ ACCOUNTS

SPECIA+ ACCOUNTS

Dou'e Return Deo5it Sche4e 8DRDS9

!" Bank is pleased to offer 1 I Jears 'Proposed( - +ouble :eturn +eposit

,cheme '+:+,( with special feature7

Einimum

+eposit

Term Benefit

Tk. 12221 I Jrs.

Proposed

+ouble return after 1 IJears.

T#'e & +ouble :eturn +eposit ,cheme

Seci# Fe#ture

f customer requires to have your money back after completion of ;'one( year !" will not

deprive him?her from interest for pre-encashment. !or each completed year and subsequent

completed years he?she will get interest [email protected] p.a. 'proposed(.

Credit F#ciit% "ustomer can avail "redit facility up to max. <2C of the deposited amount.

21



Three Ye#r5 Deo5it P#n 8!YDP9

t is a long term fixed deposit account with special feature7

nterest rate7 @.1C

+uration7 A years.

Seci# Fe#ture

f customer requires to have his money back after completion of >'six( months !" will not

deprive his from interest for pre-encashment. !or each completed >'six( months and subsequent

completion of >'six( months customer will get interest [email protected] p.a.

Credit F#ciit%

"ustomer can avail credit facility up to max. <2C of the deposited amount.

P#%ro S#)ing5 Account

Payroll ,avings )ccount is for salaried individual and company opens it for their employees.

Initi# deo5it 0ot required

Intere5t r#te <C p.a. calculated on daily balance and paid at month.

0#inten#nce Fee7 0ot required.

Schoo S#)ing5 P#n

Dasy monthly installment based scheme account for school going students.

Intere5t R#te ;2C

22



Dur#tion 1 years 3 = years.

Scho#r5hi F#ciit% ,cholarship facility is given for both ,," 3 /," account holder 'if he

gets 6P) 1( of TG.=122.

6o4en5 S#)ing5 Account

) special kind of savings account for women9s where interest will be calculated on daily basis

and paid at month end.

Initi# deo5it TG. ;222

Intere5t r#te @C p.a

0#inten#nce Fee7 )s per BB guideline.

-#ue offer )ccountholders get a gift coupon worth TG. 112 from Eagic Eirror.

Suer S#)ing5 Pu5

) special kind of savings account for individual customer calculates interest on the daily balance

and pays at month end.

Initi# deo5it !or urban7 TG.;2222

!or rural7 TG.1222

Intere5t r#te !rom ;2222 to 12222- =C

)bove TG. 12222-@C

In5ur#nce Co)er#ge7 up to TG.122222.

0#inten#nce fee 0ot necessary.

Ser)ice5 Provide debit card and "heque book facility.

23



SHORTTER0DEPOSIT 8STD9

nterest bearing checking account for individuals. t is also a time deposit account. The

formalities for opening of this account are same to those required for current account. The only

difference is that ;'Twenty one( days notice is to be given for withdrawal of any sum of money

from )ccount.

Initi# deo5it TG.1222

Intere5t r#te FC

!.2.& FIED DEPOSIT RECEIPT 8FDR9

) certain amount of money is deposited for a specific time and money can not be drawn before

the expiry of the fixed period. t is purely a time deposit account. The bank does not maintain

cash reserves against these deposits and therefore the bank offers higher rates of interest on such

deposits. nterest is paid at rate determined by the length of the period for with the deposit is

made. 4bviously the longer is the period of deposit the higher is the rate of interest.

Intere5t r#te Eaximum ;.12C 'variable( +o#n

f#ciit% )llows up to <1 C

!+: 'Tenure A month(7

Types of +eposits Dxisting

:ate

:evised :ates with effect

from 21.2<.2;2

#ess than TG.;22 corer @.1C 5ill remain unchanged

24



TG. ;.22 corer 3 above but less than TG. 1.22

corer

@.12C 5ill remain unchanged

TG. 1.22 corer 3 above <.22C <.1C

!+: 'Tenure > month(7


:ate


from 21.2<.2;2

#ess then TG.;22 corer @.1C 5ill remain unchanged

TG. ;.22 corer 3 above but less than TG. 1.22

corer


TG. 1.22 corer 3 above <.22C 5ill remain unchanged

!+: 'Tenure ; year(7


:ate


from 21.2<.2;2

#ess then TG.;22 corer @.1C 5ill remain unchanged

TG. ;.22 corer 3 above but less than TG.

1.22 corer


TG. 1.22 corer 3 above <.22C 5ill remain unchanged

OPENIN* OF FIED DEPOSIT ACCOUNTThe depositor has to fill up an application form wherein he?she mentions the amount of deposit

the period for which deposit is to be made and the name's( in which the fixed deposit receipt is

to be issued. n case of a deposit in 8oint names the banker also takes the instructions regarding

payment of money on maturity of deposit i.e. whether payable 8ointly or payable to survivor etc.

25



The banker also takes the specimen signatures of the depositor's(. ) !ixed +eposit :eceipt is

than given to the depositor acknowledging receipt of the sum of money mentioned therein. t also

contains the rate of interest and the date on which the deposit will mature for payment. n this

account no transactions are allowed and no "heque books are issued. "ustomers are given !ixed

+eposit :eceipt only.

PAY0ENT OF INTEREST

t is usually paid on the maturity of the fixed deposit. !" Bank #td calculates the interest at

each maturity date.

T%e5 of Deo5it5 8FDR9 Deo5it R#te5

4ne month @.22C

Three months @.12C

Three months 3 above @.12C

!.! CASH SECTION

"ash department is the most vital and sensitive organ of a branch as it deals with all kinds of

cash transactions. This department starts the day with cash in vault. Dach day some cash i.e.

opening cash balance are transferred to the cash officers from the cash vault. 0et 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. )nd this is the final cash balance figure

for the bank at the end of any particular day.

Function5 of c#5h de#rt4ent

"ash payment

26



"heque cancellation process

"ash receipt

C#5h #%4ent

"ash payment is made only against cheques.

This is the unique functions of the backing system which is known as “payment on

demand$.

t makes payment only against its printed valid cheque.

!.& Ser)ice of IFIC "#n$

!.&.1 +oc# Re4itt#nce5

Sending 4one% fro4 one #ce to #nother #ce for the cient5 i5 #nother i4ort#nt 5er)ice

of the bank. This service is an important part of transaction system. n this service system

people especially businesspeople can transfer funds from one place to another place easily.

There are three kinds of technique for remitting money from one place to another these are

;. +emand draft '++(

. Pay order 'P4(

A. Telegraphic Transfer 'TT(

!.&.2 De4#nd Dr#ft 8DD9

++ is called LBanker9s +raft9. t is an instrument issued by a particular branch drawn on

another branch of the same bank instructing to pay a certain sum of money. t is very popular

instrument for remitting fund from one corner of a country to another. ++ is issued in favor of a

client who maintains an a?c with !" Bank.

27



Co44i55ion #nd ch#rge5 of DD

Postal charge Tk. ;1.22 M commission 2.;2C M ;1C Nat on commission.

De4#nd Dr#ft I55uing Proce55

Figure 3 +emand +raft ssuing Process

)fter finishing all the required information entry of the ++ given in the ++ issuing register and

at the same time bank issues a ++ confirmation slip. t is entered into the ++ advice issue

register and a number is put on the confirmation slip form in the same register. #ater the bank

mails this advice to the drawer branch.

28



!.&.! P#% Order 8P.O9

Pay order gives the right to claim on the issuing bank. ) payment is an instrument from one

branch to another branch of the bank to pay a spec!" sum of money. *nlike cheque there is no

possibility of dishonoring because before issuing pay order the bank takes money in advance.

There are three reasons behind the use of P.47

:emitting Purpose

)dvice to Pay

Payment against bill submitted to the bank.

P#% Order con5i5t5 of three #rtie5

Beneficiary

)pplicant

"ounter Part

Co44i55ion #nd ch#rge5 of P.O

)mount of P.4 "ommission on

:emittance

;1C N)T on

"ommission

*p to TG. ;22222 1 F

;2222; to 122222 12 @

)bove 122222 ;22 1

29



Purchaser has an account with IFIC and flls up the releant !or" with a credit oucherPurchase the P# in !aor o! a

%eposit the P# in his account with IFIC or a

)he collectin* &an'er presents the P# to pa$in*

I! %eposit to another (an'Collectin* &an' sends an I&%+

I! an$ +ccount with IFIC

Pa$ee,s account credited with collectin* &an'er

Pa$ee,s account credited with co

T#'e > "ommission and charges of P.4

P#%4ent Proce55 of P#%ing "#n$ Payment is made through clearing

P#% Order

) P4 issued by the bank is crossed one. t is not paid over the counter. 4n the contrary the

amount is transferred to the payees9 account. To transfer the amount the payee must duly stamp

the P4.

P#% Order i55uing roce55

Figure = Pay 4rder issuing process

!.&.& Teegr#hic Tr#n5fer 8TT9

30



TT ssuing branch requests to another branch to pay specified sum of money to a specific person

on demand by telegraph or telex or telephone. Transfer of fund by TT is the rapid and

"onvenient but expensive method.

"lient fills up the TT form and pays the amount along with commission in cash or by

cheque.

The respective officer issues a cost memo after receiving the TT form with payment seal

then signs it and at last gives it to the client.

0ext a TT confirmation slip is issued and its entry is given in the TT issue register.

) test number is also put on the face of the slip. Two authori%ed officers sign this slip.

The respective officer transfers the message to the drawer branch mentioning the amount

name of the payee name of the issuing branch date test number and his her power of

attorney 'P.).( number.

The confirmation slip is sent by post.

P#%4ent Proce55 of TT

,tep-7 Test confirmation

,tep-7 "onfirm issuing branch

,tep-A7 "onfirm payee9s account.

,tep-F7 "onfirm amount

,tep-17 Eake payment

Co44i55ion #nd Ch#rge5 of TT

Telephone or Telex charge TG.A2.

"ommission of Principal amount.

;1C N)T on commission.

31



!./ Ce#ring SectionThis section receives all kinds of cheques in favor of the valued client for clearing on the part of

their banking services. )fter receiving the cheque it is necessary to endorse it and cross it

specially. "learing of cheque is done through the clearing house in Bangladesh Bank.

TYPES OF CHEUE FOR C+EARIN*

There are four types of cheques for clearing7

;( nward clearing cheque.

( 4utward clearing cheque.

A( nward bills for collection.

F( 4utward bills for collection.

In<#rd ce#ring che:ue

t refers the instruments drawn on !" bank received by other banks in the clearing house from

the representative of other bank.

Out<#rd 'i5 for coection

5hen our branch sends "heque to other branch of !" bank it is called 4B". )ccounting

treatment of this process7

!" general ',ender9s Branch(

+r.+epositor9s )?" "r.

In<#rd 'i5 for coection 8"C9

32



There are two types ofclearingO first collecting cheque from the other branch of !" bank.

These "heques are settled by sending to the debiting depositors account and crediting sender9s

branch account. ,econd collecting cheques from another bank outside the clearing house. These

cheques are settled debiting depositors account and sending ++ orTT in favor of sender9s bank.

Out<#rd Ce#ring Che:ue 8OCC9

"heque drawn of another branch of !" bank is called 4utward "learing "heque. These types

of cheques are directly sent to the respective branch and request them to send B").

!. ACCOUNTS SECTION

This is obviously an independent and unique department which works as the composition of all

the departments of the branch. This section is fully computeri%ed. ,o the conventional large

ledger and 8ournal books are not kept like some nationali%ed bank. t receives the vouchers from

all departments and prepares the subsidiaries and maintains accounts.

ESTA"+ISH0ENT SECTION

This section deals with employees salary many types of internal expenses such as purchases of

stationary equipment machinery payment of labor cost and conveyances. n case of leave of

absence employee collects prescribed from this section.

33



!.3 +o#n5

Auto +o#n.*etting the +o#nf you are an adult employed person and have an account with us then you can easily apply for

the )*T4 #4)0.

+o#n Si;e Eaximum Tk.2 lac .

+o#n Period ;->2 months.

De't E:uit% R#tio =27A2

Intere5t r#te7 ;1.12C p.a

Proce55ing7 Quick Processing mmediately.

#east !ormalities.

"onditions apply

Con5u4er +o#n

*etting the +o#nf you are an adult and employed person and have an account with !" then

you are eligible to apply for the loan.

+o#n Si;e Eaximum Tk.; #ac.

+o#n Period ;-A> months.

De't E:uit% R#tio @272

34



Intere5t r#te7 ;>.12C p.a

Proce55ingQuick Processing mmediately.

#east !ormalities.

"onditions apply.

E#5% +on

FeGi +o#n

*etting the +o#nf you are an adult Bangladeshi employed by the

6ovt?)utonomous body? Bank? E0"? 064 or any other kind of employed person with at least monthly Tk. ;2222

salary then you are eligible for the !lexi #oan.

F+EI +OAN Puro5e5a. Earriage expense for sons and daughters.

b. /oliday expenses for self and family members.c. Dmergency medical needs.

d. "06 conversion for car.

e. /ome renovation ? any other purpose

+o#n Si;e Eaximum Tk.A lac.


Proce55ing7 Quick Processing mmediately. #east !ormalities.

"onditions apply

35

*etting the +o#nf you are an adult person andhave an account with us then you

can easily apply for the D),J

#4)0.

+o#n Si;e Eaximum <1C of the face valueof !+:.

Eaximum ;22C of the E,

amount.

Eaximum ;22C of the principalamount of P,,.

+o#n Period;-A> months.

Intere5t r#te7 ;>.12C p.a



Po55e55ion +o#n

*etting the +o#n

f you are a Bangladeshi entrepreneur with only years of successful businessrecord 3 having a valid trade license and also have an account with !" then you

are eligible to apply for this loan.

+o#n Si;e Eaximum Tk. 1 #ac.

+o#n Period Eaximum >1 years on the date of maturity of the loan.

Proce55ing Quick Processing mmediately.

#east !ormalities.

"onditions apply

Pe5h#(i'i +o#n

*etting the +o#n f you are an adult employed person and have an account

with us then you can easily apply for the PD,/)HDDB #4)0.

+o#n Si;e Eaximum Tk.1 lac.


Proce55ing7

Quick Processing mmediately.

#east !ormalities.

"onditions apply

36



Ret#i +o#n

*etting the +o#n

f you are a Bangladeshi entrepreneur with min of years of successful businessrecord have a valid trade license and have an account with !" then you are

eligible to apply for this loan.

+o#n Si;e Eaximum Tk.; #ac.

+o#n Period Eaximum years.

Proce55ing Quick Processing mmediately.

#east !ormalities.

"onditions apply.

!.= Coror#te Soci# Re5on5i'iit% of IFIC "#n$

!" Bank undertook a good number of programs in the field of corporate social responsibility

'",:( in order to address the needs of common people for making a positive and meaningful

contribution to the society.

1. !" bank donated TB.2?.?? 4iion to Prime Einister9s relief fund for

the victims of :ana Pla%a Tragedy under Bank9s ",: activities.

?2. The bank donated TB.2./? 4iion to :angpur cantonment authorities for ,ponsoring adocumentary and book publication on the role of :angpur +istrict during #iberation 5ar.

?!. PROYASH is an institution for the children with soecil needs and disability.t9s main

activities are to impart training and education to these children empower and rehabilitate in thesociety. "onsidering the importance of their activities !" bank paid TB.1? 4iion to

PROYASH.

37



?&. ,###'#d Educ#tion Trust is a non-political welfare organi%ation .,###'#d educ#tion

Trust received financial assistance of TB.1.?? 4iion to raise their fund for educational

activities.

?/. The Bank distributed blankets and shawls among the poorest people in F districts through

bank branches Bangladesh Bank and Bangladesh association for ,ocial )dvancement 'B),)(as part of Bank9s ",: activities. The Bank spend TB.2.=2 4iion in this Purpose.

?. !" Bank disbursed TB.?.!! 4iion to landless people in underdeveloped areas through

11 branches as the part of Bank9s ",: activities. The relationship manager of concerned

branches implemented the ",: activity in agricultural sectors and income generating activities by distributing saplings and seeds of various high valued trees corps poultry items etc.

?3. Sir S#i4u#h 0edic# Coege is the second largest medical college of our country. The

+ebates and Qui% society of the medical college organi%ed year-long programs in 2;F on the

college campus. The Bank donated TB. ?.// 4iion to debate and Qui% ,ociety of ,ir

,alimullah Eedical college for organi%ing their programs on the campus.

?=. Sh#45unn#h#r H# of uni)er5it% of Dh#$# is the second largest hall for female students

of the university. The hall had only one TN for the entertainment of a large number of students.

"onsidering the necessity of the large number of students the bank donated a modern television

set to S#45unn#h#r H# uni)er5it% of Dh#$#.

38



!.> Finding5 #nd Di5cu55ion

!" Bank is one of the largest and oldest private-sector commercial bank in Bangladesh with

= years of experience. )daptation of modern technology both in terms of equipment and

banking practice ensures efficient service to clients.

But !" Bank has been facing few problems.

n general banking system they follow the traditional banking system. The entire

general banking procedure is not fully computeri%ed.

)ccording to some clients opinion introducer is one of the problems to open an

account. f a person who is new to the city wants to open an account it is a problem

for him?her to arrange an introducer of ,B or "+ accounts holder.

39



Bankers face enormous problems to fill up loan related paper like parties loan

application stock report 0et worth valuation report etc.

Proper documentation under traditional rules in some cases creates serious problems

for investment taking practices.

#ack of team work is a ma8or problem in general section.

,ometimes the valuation of properties is not calculated properly for which clients

suffer.

t does not offer various loan pro8ects like other banks.

Eodern technical equipment such as computer is not sufficient in general department.

)s a result the service process makes delay and it is also complicated.

Dmployees are exposed to clients excessively which is an obstacle in systematic and

prompt service.

,pace shortage is another ma8or problem in 6eneral Banking +epartment.

)s a newly converted slamic Bank its efficient bankers are trained with traditional

banking and sometimes they are not eager to follow the slamic practice.

+ecisions are centrali%ed

40



41

CHAPTER &

S6OT An#%5i5 of IFIC "#n$



,54T analysis is the detailed study of an organi%ation9s exposure and potential in perspective of

its strength weakness opportunity and threat. This facilitates the organi%ation to make their

existing line of performance and also foresee the future to improve their performance in

comparison to their competitors. *sing this tool an organi%ation can study its current position it

42



can also be considered as an important tool for making changes in the strategic management of

the organi%ation.

&.1 STREN*TH

Quality services through modern sophisticated automated system.

n case of service offered by all private banks in our country !" Bank #td has maintained

high quality.

,ince the govt. has imposed some new rules regarding private banking operation !" Bank

#td. easily coped with the given rules.

:egarding contribution towards country9s 6+P they have contributed a handsome amount per

year.

Dxperienced and competing workforce who have expertise knowledge about the bank

,ome loyal clients who always bring in new clients.

Eanagement consists of knowledgeable and authoritative personnel9s.

:eputation of the management

nteraction of the employees with the top management.

&.2 6EABNESS

The prime weakness found was lack of motivation of employees.)bsence of teamwork because of subtle interpersonal clash.

Bad employee-management relation in some cases.

The bank doesn9t have any long-term strategies of whether it wants to focus on retail

banking or become a corporate bank. ,ometimes the process of information transferring to the management is lengthy.

#ack of own )TE services.

43



&.! OPPORTUNITIES

!" is going to introduce credit card and )TE facility. t is a sign of product innovationwhich !" can do further and successfully.

t has branches abroad which many commercial banks of the country do not have. This

distinctiveness introduces competitive advantage for !".

5ith its proper and useful operational network there is an opportunity for !" to further

expand its branches in many remote and new location of the country which will deliver

services to customer and earn a healthy profit for the bank.

)nother opportunity is the establishment of new banks in very vital points. Eoreover in

our country there are no closing rules for commercial banks. )s a result of which as an

existing commercial bank !" Bank #imited has a great opportunity and potential for

its favorable business opportunity.

&.& THREATS

Poor economic condition of our country.

Dntrance of new private commercial banks.

+ifferent attractive services offered by some foreign banks.

Dxisting card service of different banks.

4ther commercial banks are offering higher salary that may create problem for !"

Bank #td to retain their experienced managers and executives.

44



45

CHAPTER /

Concu5ion #nd Reco44end#tion

IFIC "#n$



/.1 CONC+USION

Top management of !" should conduct a comprehensive study or survey on the branches9

performance its management9s performance and the employees9 performance and their

motivation as well. !ew loyal committed customer bases lack of modern and effective

technology or facilities not enough skilled employee in some sector considering all of these

very important factors. !" Bank should always try to improve their service level in every term.

The marketing department should think freshly about their marketing ob8ectives and practices.

:apid changes can quickly make yesterday&s wining strategies out of date. )s a developing

private bank in Bangladesh !" Bank shouldn&t allow their clients to get dissatisfied with their

service. They have their competitors who are actively striving to take the advantages in every

side.

/.2 RECO00ENDATION

n order to get success market advantage and to deliver quality service top management

may try to develop the banking services and products. !" Bank may train up their branch personnel about all sort of information regarding

,ociety for 5orldwide nter Bank !inancial Transaction ',5!T( and its service. +ue to lack of proper knowledge about the services provided to the customers and the

operation procedures by ,5!T certain customers are facing problem as they have to

wait for a certain time to get the service they want. )nd sometimes personnel are not

being able to operate ,5!T without facing any problem. They are not fully capable of

handling ,5!T. The solution to this problem is official training. !" Bank continuously strives and tries to introduce new services and products as access

card with future improved quality services.

46



t seems to us that day-by-day customers operation is increasingO individual employee has

to handle different kinds of 8ob. But that is not good for an employee. )s a result it might

lead to a big mistake by the employee and service is also a lot time consuming and

customer has to suffer for this situation. Eay-be it would be the reason for employee&s de-

motivation as well as the customer&s dissatisfaction. !" Bank #td. might concentrate on their promotional activities. They should also focus

on the marketing aspects to let customers know about their products and offerings and

more promotion should be given to attract new customer. !" Bank #td. might develop electronic banking system to modify the service.

Technological advantage of a bank ensuring its competitive edge in the market place can

only be achieved by efficient manpower. Dlectronic banking system also allows increased

access to the financial system by its customers.

47



"I"+IO*RAPHY

0.T. ,omashekar Banking 0ew )ge nternational #imited

Publishers

P.0. Narshney Banking #aw and Practice ;st edition ,ultan

"hand and ,ons Publication

Reference5

Pu'i5hed Artice

Prospectus of !" Bank #imited

)nnual :eport of !" Bank #imited '22< to 22;F(.

!" Bank 5orking Eanual for #oan 3 )dvances 2;F

!" Bank !inancial ,tatement-2;F-;1

!" Bank "orporate ,ocial :esponsibility :eport.

6e'5ite

http7??www.ificbankbd.com http7??www.bangladeshbank-bd.org

http7?? www.google.com

http??7www.wikipedia.org

http://www.ificbankbd.com/

http://www.bangladeshbank-bd.org/

http://www.google.com/

http://www.bangladeshbank-bd.org/

http://www.google.com/

http://www.ificbankbd.com/

internship report on ific bank ltd

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