MAIN TEXT

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Chapter – One

1.0 INTRODUCTION:

Bank plays an important role in the business sectors and in the industrialization of a country. Basically the banks take deposits from the customers against interest and lend it to the borrowers against interest for cessation period. Under these circumstantces of banks offers different interest rates and other options to the customers to remit and deposit their money. These options are very common among the entire bank, but only the customer services and other facilities vary from bank to bank.

In our country there are Govt, Bank, semi-Govt, Bank, Private sector commercial bank of Bangladesh and also it is the third generation private bank in Bangladesh. It started its crucial moment/juncture when Bangladesh economy was under going through massive economy reforms and pursuing unilateral and multilateral trade liberalization with the backdrop of the world bank made international monitory fund recommendations As of September 2010, JBL with its 67 branches in strategic locations of the country is providing the best quality service to the customer and clients.

The Moulvi Bazar branch is 23 employees have working. Mr. Borhan Uddin is vice president and Manager of the branch. They follows on principal, narrow span of management as a result of which the management can put directly care on all the departments.

1.1 STATEMENT OF THE RESEARCH PROBLEM:

To prepare this report I have faced the following problems, which may be termed as the problem of the study. The major problem of this study is given as follows:

There are some restrictions to have access to the information confidential by concern authority.Due to some legal obligation and business secrecy bank was reluctant to provide data. For this reason, the study limits only on the available published data and certain degree of formal and informal interview.The bankers are very busy with their jobs, which lead a little time to consult with them.I worked only on Moulvi Bazar branch of Jamuna Bank Limited, so I gather knowledge about activities of Head Office only by reading/hearing not in practical way.Sufficient records, publications regarding customer service were not available as per requirement.Knowledge and learning become Perfect When it is associated with theory and practice. Theoretical Knowledge gets its perfection with practical application. As our educational system predominantly text based, inclusion practical orientation program, as an academic component is as exception to the norm. As the practice; educational institution and the organization substantially benefit from such a program. It seems a ‘’win-win situation’’ It establishes contracts and networking contracts. Contracts may help to get a job. That is,

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students can train and prepared themselves for the job market. A poor country like Bangladesh has an overwhelming number of unemployed education graduates. As they have no internship experience they have not been able to gain normal professional experience or establish networking system, which is important in getting job.So practical oriented is positive development in professional area Recognizing the important of practical experience, School of management and Business Administration has introduced a three months practical exposure at a part of the curriculum of Bachelor of Business Administration (BBA) program and Master of Business Administration (MBA) program in such state of affairs the present aiming at analyzing the experience of practical orientation related various aspects of Banking activities in the Jamuna Bank Limited Moulvi bazar branch.

1.2 OBJECTIVES OF THE STUDY:

1.2. A General objective:

The general objective of the report is to know about the management system of Jamuna Bank Limited as a private commercial bank, its functional, operational, and financial aspects.To know the background of the organization is another objective. To enhance the knowledge of the readers about banking and finance is also a disguise objective of the report.

1.2. B Project objective:

Therefore the Objectives behind conducting this study are as follows:

1. To fulfill the requirement of the Internship Program.2. To gain in-depth Knowledge of standard banking services of JBL highlighting the

Islamic banking activities of all department.3. Besides fulfilling the degree requirement, this project intends to cover a

comprehensive analysis of overall activities of Jamuna Bank LTD.4. To present an overview of Jamuna BankLTD.5. To appraise deposit mobilization activities of Jamuna Bank LTD. (To appraise

credit activities of Jamuna Bank LTD. (To measure customer satisfaction level of Jamuna bank LTD.

6. To identify problems and challenges of Jamuna Bank LTD.7. To recommend remedial measures for the improvement of the activities of Jamuna

Bank LTD.8. To assets the expectation & satisfaction level of Jamuna customers.9. To determine the most important attributes of service quality.10. To know the overall banking progress.

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1.3 METHODOLOGY OF THE STUDY:

Methodology includes direct observation, face-to-face discussion with employees of different departments, study of files, circulars etc. and practical work. This study includes both quantitative qualitative data However, This report basically qualitative in nature. In all the cases depending on the requirements data have been collected from different sources. Both the primary and the secondary from of information were used to prepare this report. The details of these sources are highlighted below:

Source of Data:

This report is based on both primary & secondary source of information. For theoretical development of this research paper the data has been collected from the various sources like different publication, library source, books, articles, etc. For collecting primary data, we had to ask the respective officer(s). Others are like-Exposure on different desk of the bank. (Principal Officer of the bank) Official document and File study.

Collections of facts are generally treated as data. There are two types of method---Primary Data and Secondary Data.

a. Primary Data:

The Primary Data are those that are collected fresh and for the first time and thus happen to be original in character. I can collect data from different level of employees like vice president, branch manager, assistant vice president, provisionary officer, junior officer etc.Primary data are collected in two ways:-

1. One is by questioning2. Another is by interviewing.

Conversation with the related people to the banking sector. Exposure on different desk of the bank. Conversation with the clients.

I asked some question to the bankers, client and other related employees such as,

1. What do you have satisfied in your banking activities?2. Do you want to change any system?3. Do you fully satify in your customers?4. What did you want in your customer?5. Are you wanted to increase any deposit scheme?6. Do you think that this bank provided better service to the customer?

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b. Secondary Data:

The secondary data are those that which have already been collected by someone else and which have already been passed through the statistical process.The sources of the secondary data are:

1. Annual report of JBL.2. Directories & manual, magazine.3. Bankers guide and from relevant.4. Statement of affairs.5. Different pamphlet regarding banking function, foreign exchange operation, credit

policies and the circulars of the bank.6. Different web-site/URLs.

Data Analysis:

Data that are collected though the primary investigation or from secondary sources have been analyzed through statistical tools (such as excel), tables, trends etc. depending on the nature of data and the requirements. Where possible, the data have been verified from different sources such as from periodicals published by the Bank. At that time of the interview I have found that JBL is offering a full-fledged Islamic banking including foreign exchange services because this branch is an Add of Foreign exchange. We have also found that in respect of transactional dealings this branch has a good reputation among other branch of JBL. The banks are also keeping a close eye on relevant development & changes in banking policies, procedures and rules & regulations.

Method of data collection:

Face to face interview method

Target population:

1. Officers of Jamuna Bank Limited.2. Deposit clients of Jamuna Bank Limited.

Sample size:

Twelve officers and twenty-six deposit clients select to take interview.

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Sampling technique:Convenience sampling.

1.4 DEFINITIONS OF TERMS USED IN THE STUY:

International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundary. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons.It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.

Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next.

The conduct of international operations depends on companies' objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment.

1.6 Limitation of the Study:

In doing the report I have faced some limitations what I can’t ignore, some of those

Limitation is:

1. Bankers don’t want to disclose all the information what I need.2. Load at the work place was also a barrier to prepare this report.3. Although the officers of the Jamuna Bank Limited have been very helpful. They

didn’t have enough time to provide, as they are very busy with their assigned works. So, in some cases observation was needed.

4. Due to lack of experience, there may have been faults in the report through maximum efforts have been given to avoid any kind of mistake.

5. Large-scale research was not possible due to time constraints.6. The research was conducted only within the customers of moulvi bazar branch.

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7. Relevant data and document collection were difficult due to the organization Confidentiality.

8. Another limitation was that data gathered could not be verified for accuracy.9. The lack of intellectual thought and analytical ability to make it a perfect one.

Finally, the length of this internship program (12 Weeks) is not sufficient conduct a detailed study on the subject of research.

SCENARIO REGARDING THE MAIN TOPIC OF THE

REPORT

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Chapter-Two

2. Introduction:

General banking is the most important function of any banking concern and it is known as the heart of any banking concern. It is also known as the day-to-day banking, retail banking, and general banking etc. The overall success of any banking concern largely depends upon the successful performing of the general banking. The general banking procedure includes opening of various accounts and schemes, receipt and payment of cash, remittances, clearing, issuance of loans and advances, credit administration and monitoring and foreign trade and exchange etc.

General Banking means general activities of a bank. It is the most important and preliminary work of a bank. All other activities like investment and foreign exchange are rolled through the general banking. The general banking system of Jamuna Bank Limited is very dynamic and errorless. The executives and officers are very friendly and supportive to their work. Although Jamuna Bank Limited is a new branch but their general banking activities are excellent. All the clients are satisfied with their services. They expand their services to reach new customer year by year. In their effort to improve their customer facility they provide different facilities and offered numerous types of general banking facility. They are trying to improve themselves in every year in relation with the other branch of Jamuna Bank Limited their net profit has increased. So we can say that they are doing with target which leads them to a higher net profit.

2.1 Components of General Banking:

The Jamuna Bank Limited (Moulvi Bazar Branch) offers various types of general banking components. They are very essential tools for the bank to serve the customers. To attract new customers the bank has to launch new components or re-furnished their existing products.Their components of general banking are as follows: (a) Account and Schemes (b) Receipt and Payment of cash (c) Remittances (d) Clearing (e) Loans and Advances (f) Foreign trade (g) Credit administration and monitoring

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2.2 Account and Schemes:

Account opening is the first and preliminary work for a bank. Opening of an account binds the Customer and Banker into a contractual relationship. It is the most important and preliminary work for a bank. Account Opening is very important task for any kind of banking activities. Customer relationship establishes through opening an account. Generally who are receiving bank service we may call them as a customer. But bank considers them as customers who have an account with them.

2.3Procedure of Opening of an Account:

Banker’s his to maintain some common principles and procedures for open all most deposit accounts. Major information is essential for identification of the account holders individually so that banker can discharge his obligations to everyone correctly and to the extent due. Following are the formalities a customer must maintain in case of opening of an Account opening requirement:

1. Minimum age of 18 years.2. Application in the prescribed form.3. Furnishing Photographs of the applicant and attested by the introducer (2 copies). 4. Introduction by an account holder. 5. Recording of specimen signature in the specimen signature card. 6. Mention nominee in the prescribed form. 7. Furnishing Photograph of the nominee (1 copy).

2.4Description of Deposit Accounts:

There are several types of deposit accounts. Each account has different characteristics and every account has some specific purpose to serve. According to their uniqueness they are described as follows:

A. Savings Account:

It is the general account of the Jamuna Bank Limited (Moulvi bazar Branch) individual or more than two persons can open a savings account on Jamuna Bank Limited. The rules and regulations that must need to fulfill to open a savings account are as follows:

1. Applicant has to be a Bangladeshi citizen.2. Two-passport size furnished photographs attested by the introducer.3. Accounts may be opened in the name of illiterate persons after completion of

necessary formalities but withdrawals from such accounts should be allowed only on personal appearance.

4. A suitable introduction is required for opening the account.5. Not more than one account should be allowed to open by one person in his/her

name at any branch of the bank but this will not prevent a parents/guardians for opening more than one account for their children’s who are minors.

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6. Each account will be given a separate account number which should be quoted while making withdrawal or deposit in the account or any correspondence.

7. Depositors may deposit money in his/her account as often as he/she likes.8. Banks may accept checks, drafts, payment order, dividend warrants etc. on behalf

of the account holder for collection.9. Initial deposit for opening an account is Tk.5000 and the account may be closed

where the balance falls bellow Tk.500. However, Manager has the discretion to authorize opening account below Tk.5000.

10. A depositor may withdraw money from his/her account twice in a week. Depositor may withdraw his/her deposit money up to 25% without notice but for withdrawals more than 25%, 7 (seven) days notice is required.In the event of contravention of the rule, the depositor’s will not be given any interest in this account for that month.If a depositor presently withdraws more than twice a week or a sum exceeding 25% of the balance in his/her account without notice, the bank realize service charge in its discretion. This will be in additional to forfeiture of interest provided for above.If a depositor like to close his/her account, service charge of Tk.250 will be deducted from his/her account.The officers and authorize persons are issuing check book, deposit slips and statement of account to the holder of savings. The officer justifies the information that is submitted by the account holder for opening of the account. The officers looked all the process account-opening formalities.

B. Current Deposit Account:

Jamuna Bank Limited is one of the newly established well-reputed third generation private commercial bank in Bangladesh. It operates very diverse current account operation. They serve various types of customers, like current account for private limited company, current account for public limited company, current account for partnership business, etc. All these accounts are following the under noted rules and regulations of Jamuna Bank Limited. Rules and regulation for current deposit accounts are as follows:Current deposit accounts are opened with sums of TK. 5000 in the names of the parties known to the bank or properly introduced.It is understood that the at credit will not any time be allowed to below 1000, A minimum charge of Tk.100 per year is made on all small operative accounts and on those 3 accounts in which the number of the transaction is out of proportion to the balance of deposit.All deposit to current account made by local constituent should be accompanied by pay-in-slip and the depositor should satisfy themselves that the depositor are verified by the received and date stamp of the bank and the initials of the bank’s officials.The bank collects local check, pay order, demand draft, etc. on clearing free of cost and all other collection items at charges to be ascertained on application.A charge of Tk.100 will be made on all accounts closed within 6 (six) months of their opening.More than 2 (Two) applicant can open the account.Account holders can deposit the money at any numbers of items.There is no restriction of how many times and the amount of money is withdrawn.For a private or public limited company various types of legal documents might be articles of association, memorandum of association, trade license etc.To be certified by an introducer who has a current account with the bank.

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The account holders have to provide the company seal when it is necessary.In case of clubs, societies, schools, colleges certified copies of bye-laws and regulations must be submitted to the banker.In case of partnership firm attested photocopy of Partnership Deed must be submitted to the banker.In case of trust, club up-to-date list of the Members of the Trustee Board.

C. Foreign Currency Account:

The Jamuna Bank Limited (Moulvi bazar Branch) also operates Foreign Currency Account for Bangladeshi Wage Earners or for Foreign Nationals/Company/Firms etc. to send their valued earned foreign currency into the country. The rules and procedures for opening of the Foreign Currency Account are as follows:

Foreign Currency Account (For Bangladeshi Wage Earners):

Two (2) copies of passport size furnished photograph attested by the introducer and one (1) copy photograph of nominee attested by the applicant.

Attested photocopy of the first 7 (seven) pages of the valid passport. Attested photocopy of employment contract/ appointment letter/ work permit.

If account intended to be opened from abroad Bangladesh Embassy or High Commission shall attest all original papers except the photograph of the nominee which to be attested by the account holder him/herself.

Foreign Currency Account (For Foreign Nationals/Company/Firms):

The required papers and documents are as follows:Two copies of passport size furnished photographs of the account holder which

should be attested by the introducer. Copies of relevant pages of the passport duly attested by dealing officer for individual and operators of the account holders.

Copy of set-vice contract / appointment letter / work permit, if any for the individual. Copies of registration in Bangladesh with Board of Investment (BOI)/ Bangladesh bank foreign joint venture firm.

Copies of memorandum of association, articles of association, bye-laws, joint venture agreement for Joint Venture Company. In case of partnership firm, copy of the partnership deed which should be dully attested by the authorized officer. Short Term Deposit Account (STD):

Jamuna Bank Limited also offers Short Term Deposit to its valued customers. Short Term Deposit is a deposit account where the payment of interest is paid on month basis. This items include the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. These types of liabilities are payable on special notice or after a specified period other than the fixed deposits. Some of these types of deposits are of the nature of time deposits. The rate of interest on STD account is 4.5% per annum. There are some rules and regulations that must be maintained by the STD account holder. If the STD account

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holder wants to withdraw the money from the account they have to inform the bank before, otherwise the account holder may not get the interest in full amount.

Particulars Approved Revised RateShort Term Deposit (STD) 6.50%Savings Deposit : Rural / Urban 7.00%Savings Deposit : Non-Chequing & No withdrawal for 6 (six) months

7.50%

Savings Deposit : Non-Chequing & No withdrawal for 1 (one) year

8.00%

Schemes:

Schemes are the most important sources of enhancing banks deposit. Mainly bank is the lender of money, which is deposited by various types of depositor. These schemes are different in nature and types and also in interest rates. These deposits give the customers to deposit the idle money in profit earning schemes and also provide the security. Jamuna Bank limited as third generation modern and technology based modern commercial bank offers various types of customer’s friendly deposit schemes to its valued customers. These schemes are highly profit earning to the depositors and also unique in security. The schemes are outlined below:

Fixed Deposit Receipt (FDR):

Jamuna Bank Limited offers various types of FDR to its client’s. Their maturity may be 1 (One) months, 2 (Two) months, 3 (Three) months, 6 (Six) months, 12 (Twelve) months, etc. In Jamuna Bank Limited customers can open FDR in individually or jointly for any amount for a fixed period. For opening of FDR no introducing are required. Only one copy of passport size photograph of the account holder and another copy of the nominee is needed. Customers can get the interest after the maturity period of the FDR. He/She can also encash the FDR before the maturity of the period. In this case he will not enjoy the regular interest rate on the FDR. The rates of interest are presented in the following table:

Particulars Approved Revised RateFDR for 1(one) month and above 10.50%FDR for 3 (three) month and above 12.25%FDR for 6(six) month and above 12.50%FDR for 12(twelve) month and above 12.50%

Monthly Savings Scheme (MSS):

Jamuna Bank Limited has proudly offered Monthly Savings Scheme to its valued customers. There is a special typed form for opening a Monthly Savings Scheme. The duration of this scheme is 5 years. One passport size photograph of the account holder and another copy of the nominee are needed to open this account. There are various types of MSS that is offered by the Jamuna Bank Limited. The variation depends on the amount and the time of maturity of the MSS. The monthly installment of tk. 500 to 10,000 may be

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deposited every month during the entire period of the scheme. The depositor will be paid a specific amount on the expiry period as per the following table:

Period Installment Payable at the End5 (Five) Years 500 36,7385 (Five) Years 1,000 73,4755 (Five) Years 5,000 3,67,3755 (Five) Years 10,000 7,34,750

In this scheme depositor may open one or more account of different installment in the same branch. Loan may be extended to the depositor up to 80% of the deposit amount. The depositor may encash the MSS before the expiry of the maturity of the MSS period. In this case the depositor will not enjoy the full amount of interest.

Double Balance Deposit Scheme (DBDS):

Jamuna Bank Limited also offers its valued depositors to enjoying the DDBS. Under this scheme the depositor may deposit any amount multiplied by 10,000 for 7 (Seven) years. The deposited amount will be double with its principals and interest after the expiration of the aforesaid period. It is one of the most popular schemes offered by the Bank.

Monthly Profit Paying Scheme (MPPS):

MPPS is a scheme, which provides the opportunity to the valued depositor to enjoying a specified amount against the deposit a fixed amount for a certain period. If any person make deposit Tk.1, 00,000 for 1 (one) year, he/she will get Tk.900 per month for every year. This is the most benefiting scheme for retired official or middle class family. Any person can deposit any amount more than Tk.1, 00,000 at any time for the period more than one year.

Receipt and Payment of cash:

Among the services provided by the bank, cash receipt and payment is the most vital and physical function. Generally customer comes to bank to withdraw the money from their account and deposit his savings in their accounts.

Cash Deposit:

Money deposited in cash by the constituents at the cash counter of the bank excluding that of government transaction is known as Bank Receipt (Cash). Different types of forms are used for cash deposits for different types of accounts. Particulars of some forms are furnished below:

1. Current or Savings account pay in slip.2. Application for fixed deposit receipt.3. Credit voucher.4. Draft or mail transfer application form.

5. T.T. Pay order application form Call deposit application form.

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6. Demand loan pays in slip.

First Step:

The depositor will fill up the appropriate form properly. The concerned officer working at the general banking counter will initial the form relating to the new account.

Second Step:

Receiving the cash and voucher at the cash counter; the cash officer will count cash correctly. Then the voucher will be branded “Cash Received” seal. Then the assistant cash officer willing the denomination of the notes and coins in the backside of the voucher. After that assistant officer will sign the voucher.

Third Step:

The cash officer will check up the voucher and entered the amount in the cash receipt register and put the scroll number. Then the officer will sign the voucher and send to the computer department.

Fourth Step:

The officer computer department will entry the transaction into the computer and put the Posted seal and a tracer number on the voucher.

Fifth Step: At the end of the transaction the cash officer will total the cash receipt book and the total figure should be tally with scroll maintained by the officer whose scroll will also be totaled. The physical cash received at the counter must be equal to the total figure of the scroll.

Cash Payments:

Banks payment includes all kinds of payments excluding those of treasury section. Extreme precautions must be taken at all levels through, which instruments like cheque, drafts, etc, are disposed of All the instruments received at the general banking counter will be preliminary checked by the dealing officer who will enter the instruments in the respective ledger. In case of cheque the following particulars will be scrutinized. Date (Whether post dated or anti dated) Amount in word and figure Crossed or Open. Bearer or Order Style of signature as available in the ledger prohibitory order or stop payment of checks.The Cash officer will follow the following procedures at the time of payments of checks/other instruments over the cash counter.The client will submit the instruments in the computer department first. The computer officer and cheque passing authorized officer will verify the instrument and posted the instruments. Then it will be send to the cash counter.

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After getting the instrument the cash officer will verify the instruments and if necessary the cash officer can told the clients to sign in the backside of the instruments.Cash officer will record the denomination of notes and coins on the backside of the instruments.The officer will enter the check in the cash payments register where the denomination of notes and coins will also be recorded.The cash officer will give the amount to the clients at the cash counter and told the clients to count it immediately and if needed any quarry.All checks, drafts, debit vouchers, credit voucher etc. must be branded with “Cash Paid” stamp with the current date.After payment the cash department for the purpose of clean cash book will send the vouchers.The head of the cash department is responsible for all debit vouchers being branded with the cash Paid date stamp immediately they are paid and the manager must supervise him/her in this matter as any laxity is extremely dangerous.

Late Payments:

In case of any late payments instruments must be debited in the ledge and passed in the usual manner. It will be entered in the cash paid sheet in the above manner and cash book under authentication of the manager and the cash officer. It must also be noted with late mark under initial of the manager with date.

Finally all cash receipts and payments will be taken into account to calculate the cash balance of the branch we may take an example to clarify this. But this is to notify that, at the end of the day of the bank the amount of the cash book and the amount of the computer should be equal. Because currently the whole banking are monitoring centrally.

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An Overview of theJamuna Bank

Limited

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Chapter-3

3.1 BACKGROUND:

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban ( 2nd, 3rd & 8th floor), 3 Dilkusha C/A, Dhaka- 1000, Bangladesh. The Bank started its operation from 3rd June 2001. Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. 

Commitment of the Board of Directors to you for making your investment to have an ever increasing value made us possible to reach a commendable level of success in 2010. It is still vibrant in our memory that Jamuna Bank Limited incorporated in the banking industry back in 2001 with a paid up capital of BDT 39.00 Crore. Over the period of around ten years, bank’s paid up capital short up to BDT 223.00 crorewhile total capital including retained earnings and reserve stands at BDT 634.00 Crores as of 31 December, 2010. Market capitalization of the bank recorded at BDT 1226.55 Crore as of 31 December, 2010. In the year 2010, bank’s operating profit rose to BDT 241.10 Crore registering 26% growth from that of the previous year. In terms of size, the bottom line result seems to be lower comparing to some other players in the market, who received extra ordinary support from ancillary businesses due to their huge investment in capital market. But our bottom line result was completely based on core business that will give us extra comfort in the coming days with heavy regulations on ancillary businesses particularly brokerage operation and portfolio investment/ management and these ancillary businesses are experiencing heavy downward during current time, for which we have very little to care about.

3.2 CORPORATE INFORMATION:

Corporate governance refers to the structures and processes for the direction and control of companies. Corporate governance concerns the relationships among the Management, Board of Directors Controlling Shareholders, Minority Shareholders’ and other

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Stakeholders. Good corporate governance contributes to sustainable economic development by enhancing the performance of companies and increasing their access to outside capital.Jamuna bank limited is a fast growing private sector bank in Bangladesh. This is a third generation private commercial bank. It has created a new horizon of its own in the banking area of Bangladesh in terms of service to the customers. The bank has expanded and consolidated its customer base in both of its core businesses and retail banking. The Bank undertakes all types of banking transactions to support the development of trade and commerce in the country. Jamuna Bank Limited services are also available for the entrepreneurs to set up new ventures and industrial units.

To provide client services in respect of international trade it has established wide correspondent banking relationship with local and foreign banks covering major trade and financial centers at home and abroad.

The bank is managed and supervised with the objective to add value to the shareholders’ wealth and contribute to the national economy. Our corporate governance principles serve the goal of strengthening and consolidation of company position with sustained growth objectives in materializing the trust placed in the company by the shareholders, clients, employees and the general public. Let discuss on our corporate governance is given below:

Board of Directors:

The Board of Directors is the body responsible for corporate governance, devising policies, determining objectives and for stewardship of bank’s resources.The board has constituted the following 2 committees:

Executive Committee:

The board has set up the Executive Committee as a body to deliberate on generally important management issues and matters in the execution of operations of the bank. The committee performs within the power delegated to it by the Board of directors.

Audit Committee:

The audit committee is primarily responsible for internal control, audit and financial reporting. It monitors implementation of policies on internal control and compliances and management actions to rectify audit objections. It actively reviews appropriateness of the accounting policies, annual internal audit plan, and audit reports, risk management of the bank and bank’s technological needs. It also oversees the discharge of responsibilities of the external auditors.

Bank Management (MANCOM):

The bank is manned and managed by a team of efficient professionals headed by Mr. Md. Motior Rahman, the Managing Director and CEO who has long thirty eight years’ banking experience ( both at home and abroad). The functions of the Board and the

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Management are clearly defined and sharply bifurcated. The Management implements and acts within the policies and manuals approved by the board.

Asset Liability Management Committee (ALCO):

Asset Liability Management Committee consists of the Managing Director, the two Deputy Managing Directors and strategically important Divisional Heads of Head Office. The committee is responsible for managing balance sheet gap, interest rate risk and liquidity risk of the bank. The meetings of the Asset Liability Management Committee are held every month.

Credit Committee:

A Credit Committee headed by the Deputy Managing Director|| of the bank has been constituted in the head office of the bank for minute appraisal and quick disposal of credit proposals. The credit proposals that are beyond the delegated business power of the Managing Director are placed before the Executive Committee / Board of Directors for consideration / approval.

External Auditors:

The audit firms as per Bangladesh bank’s list of the qualified chartered accountants have been appointed as the external auditors of the bank in the 9 th annual general meeting held on June 13, 2010 and are eligible for re- appointment.

Regulatory Authorities:

The role of regulatory authorities is very important in respect of corporate governance practices of Jamuna Bank Limited. We are pledge bound to comply with all the requirements of regulatory authorities. We highly value their continuous support and prized guidance, which are needed for improvement of corporate governance of the bank.

Shareholders:

The shareholders of the bank voice their views in the annual general meetings. The constructive suggestions of the shareholders are implemented in the interest of the bank. Our share division is shareholders’ relationship department. Shareholders have right to information, which we provide them timely. Any material change in the bank concerning shareholders’ interest or any price sensitive information is quickly dispensed with for information of the shareholders and potential investors.

Investment:

The investment portfolio of the Bank as on December 2010 stood at Tk 2037 .84 million, growth rate 75.12 percent over Tk.1163.70 million of December 2009. The investment portfolio comprises Government Treasury Bills of Tk.630.00 million, Treasury Bonds of Tk, 875.00 million, prize Bonds, Primary shares, Zero coupon bonds etc. Jamuna Bank Limited is one of the preference shareholders of Aftab Automobiles Ltd, amounting Tk,

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Importer/Applicant

Advising Bank Issuing

Corresponding Bank

Reimbursing Bank

Negotiating Bank

Exporter/Beneficiary

50.00 million. The bank also invested in two shares amounting Tk.2.00 of central Depositary System (CDBL).

Import:

The total import business handled by the bank during 2010 was Tk.12151.90 million compared to Tk.7923.90 million in the preceding year registering a growth of 53.36 percent. The Bank was also able to open substantial amount of import L/Cs in 2008. The main items were industrial Raw Materials Machinery, Consumer Goods, Fabrics, Accessories, etc.Export:

The total export business handled by the Bank stood at Tk.9521.80 million in the year 2010 which was Tk.6790.80 million in the year 2009 showing a growth 36.13 percent. Readymade Garments (RMG) sector is the highest foreign exchange earner of the bank and for the country.

Flow Chart of Import Mechanism Import Export:

Foreign remittance:

Jamuna Bank Ltd has a network of 68 branches in Bangladesh. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credits to the account of beneficiaries instantly or within shortest possible time.

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Jamuna Bank LTD. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies though those banks or may contact any renowned banks nearby (where they reside/work) to send their money to their dear ones in Bangladesh.

To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. Has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT though the branches/subsidiaries of Jamuna Bank Ltd.

SWIFT:

Jamuna Bank Limited has recently become a member of SWIFT (society for Worldwide Inter-bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transaction such as letter of credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.

Corporate Banking:

The motto of Jamuna Bank Limited Corporate Banking service is to provide a personalized solution to our customers. The Bank identifies and distinguishes corporate customer’s needs and designs tailored solution accordingly for the success of their business.

Jamuna Bank Ltd. Offers a complete array of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, Import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our corporate Banking specialists will render high-class service for speedy approvals and efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of businesses and industries. You can leverage on our know-how in the following sectors mainly:

1. Agro processing industry. Industry (Import Substitute / Export oriented)2. Textile spinning Dyeing / printing3. Export Oriented Garments, Sweater.4. Food & Allied5. Paper &paper product6. Chemical and chemical products etc.7. Telecommunications.8. Information Technology9. Real Estate & Construction10. Wholesale trade 11. Transport, Hotels, Restaurants and Non Bank Financial Institutions

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12. Loan Syndication, Project Finance, Investment Banking, Lease Finance, Hire purchase, International Banking, Export Finance, Import Finance etc.

Corporate Culture of Jamuna Bank Limited:

Employees of Jamuna Bank Limited share certain common values, which help create a Jamuna Bank Limited culture.

The client comes first.Search for professional excellence.Open to new ideas and new methods to encourage creativity.Quick decision-making.Flexibility and prompt response.A sense of professional ethics.

Three Themes for Growth:

1. Introducing Card Network and electronic banking.2. Expanding personalized services.3. Building strong presence in the market with reputation.

Financial Highlights:

Sl. No.Particulars 2010 2009 2008

Amount in Taka (except ratio)

1Paid up capital

1,072,500,000 429,000,000 429,000,000

2 Total Capital 1,701,825,130 916,456,000 674,650,0003 Capital surplus/deficit 666,269,650 115,540,000 148,506,000

4Total assets (excluding off balance sheet items)

20,157,016,559 16,863,765,215 13,491,523,836

5 Total deposits 17,284,811,793 14,454,129,315 10,450,160,9916 Total loans & Advances 12,796,630,479 11,011,834,555 6,722,804,334

7Total contingent liabilities & commitments

6,574,379,439 5,445,677,509 2,903,956,390

8 Advance deposit ratio 74.03% 76.18% 64.33%

9% of classified loans against total loans

5.03% 0.46% 0.04%

10 Profit after taxation 253,400,897 199,820,081 155,952,99011 Amount of Classified loan 643,365,000 51,051,000 2,828,657

12Provision kept age classified loan

181,466,000 10,206,550 1,037,407

13 Provision surplus/deficit - - -

14Cost of Fund ( Deposit cost & overhead cost )

12.18% 10.68% 7.84%

15 Interest earning assets 18,346,059,035 15,551,752,250 12,559,226,49016 Non-interest earning assets 1,810,957,524 1,312,012,965 932,297,34617 Return on assets 1.26% 1.18% 6.91%18 Return on investment 10.02% 6.20% 1.16%

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19 Income from investment 255,662,108 126,303,992 80,439,29820 Earnings per share (Tk.) 31.94 46.58 36.3521 Net Income per share (Tk.) 23.63 46.58 36.35

22Price earnings ratio (Times)

12.26 - -

23 Net Asset Value (Tk.) 145.68 188.14 141.57

3.3. ORGANIZATION STRUCTURE:

Figures 3.3.1. Organization Structure of Jamuna Bank Limited

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SAVPSAVP SAVPSAVP

SVP (Board Secretary)SVP (Board Secretary)

SVP (HRD)SVP (HRD) SVP (Credit)SVP (Credit) SVPSVP SVPSVP

VPVP VPVP

ChairmanChairman

Managing Director (MD)Managing Director (MD)

Deputy Managing Director (DMD)Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)Senior Executive Vice President (SEVP)

Senior Executive Vice President (SEVP)Senior Executive Vice President (SEVP)

Senior Executive Vice President (SEVP)Senior Executive Vice President (SEVP)

Executive Vice President (EVP)Executive Vice President (EVP)

Executive Vice President (EVP)Executive Vice President (EVP)

Source: www.jamunabankbd.com Figure: Organizational Structure of Jamuna Bank Limited in Moulvi Bazar Branch

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Chairmen

Board of director

Managing director

Deputy managing director

Executive vice president

Senior vice president

Vice president

Senior assistant vice president

Assistant vice president

Senior principle Officer

Principle Officer

Junior Officer

Officer

Senior Officer

Assistant Officer

3.4 NUMBER OF BRANCHES:

Jamuna Bank Limited is the Private bank in Bangladesh. There are 68 branches all over the country. Among them 37 Branches in Dhaka Zone, 12 Branches in Chittagong Zone,12 Branches in Rajshahi Zone, 3 Branches in Sylhet Zone, 2 Branches in Comilla Zone, 1Branch in Barisal Zone 1 Branch in Khulna. Show under below:

Table 3.4.1 Total Brances of Jamuna Bank LimitedZone BranchesDhaka 37

Chittagong 12

Rajshahi 12

Sylhet 3

Comilla 2

Barisal 1

Khulna 1

Total 68

Source: www.jamunabankbd.com

Present Branches of Jamuna Bank:

Mohakhali Branch32, mohakhali c/a, Dhaka Sonargaon Road Bran

1/G, Sonargaon Road, Kawran BazarMoulvi Bazar Branch

77/3, MoulviBazar, DhakaGola Bazar Branch

Osmani Nagar, SylhetAgrabad Branch

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76-77, Agrabad ChittagongDilkhusha Branch

33, Dilkhusha Commercial Area Sylhet Branch Sahirplaza, 7647, ZindaBazar

Shantinagar Branch 41/B Chamelibag, Shantinagar, Dhaka

Gulshan Branch 28, Gulshan North C/A (2nd floor)

Dhanmondi Branch Road-6, House-17

Nayabazar Branch (Islami Banking Branch) North South Road, Dhaka

Mohadebpur Branch Naogaon

Konabari Branch Plot-A, 140-141, Gazipur

Foreign Exchange Branch2, DIT Avenue, MotijheelCommercial Area

Jubilee Road Branch(Islami Banking)57, Jublee Road, Chittagong

Chistia Market Branch393/B Elephant RoadDhaka

Bogra Branch898 (new), Borogola,Bogra

Narayanganj BranchNew: 207 Chashara,Narayanganj

Baligaon Bazar BranchTongibari, Munshiganj.

Proposed Branch Expansion Program:Motijheel BranchDhakaDhulaikhal Branch 119/B(old), 119/B/1 (New)Bahaddarhat Branch1068/69/70(Old), Arakan Road,Rajshahi Branch88, Shaheb bazaar, RampurBasurhat BranchMain road, Noakhali.

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3.5 NUMBER OF EMPLOYEES:

There are 30 employees working in jamuna bank limited in moulvi bazar branch. Most of the employees are highly qualified and experience person. Most employees are complited post graduate and also complited banking diploma course.

3.6 VISION STATEMENT:

Jamuna Bank Limited started its journey with the concept of 21st Century Islamic participatory three sector banking model: i) Formal Sector- Commercial Banking with latest technology; ii) Non-Formal Sector - Family Empowerment Micro-Credit & Micro-enterprise program and iii) Voluntary Sector - Social Capital mobilization through CASH WAQF and others. Finally, "Reduction of Poverty Level" is our Vision, which is a prime object as stated in Memorandum of Association of the Bank with the commitment "Working together for a Caring Society".

To become the Bank of Choice in serving the nation as a progressive and socially responsible financial institution by bringing credit & commerce together for profit and sustainable growth. To become a leading banking institution and to play a pivotal role in the development of the country.

To become a leading banking institution and to play a significant role in the development of the country and service so that sustainable growths, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work force.

3.7 MISION STATEMENT:

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 workforce.

Jamuna Bank Limited business mission is to assist the business development of private sector institutions, industry, and household. It provides products and services that encourage savings. Then it directs the fund in deposit to invest in other endeavors by extending advances to suit the need of commercial and industrial enterprises. It also emphasizes. It also emphasizes on a reasonable return from its investment to satisfy the shareholders.JBL main business mission is to obtain a sustainable position in the banking sector of Bangladesh as well as internationally.

CORPORATE SLOGAN:

"You’re Partner for growth".

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3.8 PRODUCT/ SERVICES SCHEME:

3.8.1. Products:

All Types of Deposit Accounts

The client can maintain different types of deposit accounts i.e. Current Savings, STD, FDR and Foreign Currency Account according to his necessity and convenience.

Special Deposit Schemes:

Final profit to the depositors for the year 2010 has been paid as per following weightage and rates:

Serial Number

Types of Deposit Weightage Final rate of profit

1. Mudaraba Savings Deposit 0.75 5.00

2. Mudaraba Short notice Deposits 0.60 4.00

3. Mudaraba Term Deposits

*24 Months 0.98 9.75*12 Months 0.95 9.92* 6 Months 0.92 10.42* 3 Months 0.88 10.98* 1 Months 0.80 10.00

4. Mudaraba Scheme Deposits

Mudaraba Car Deposit Scheme 1.05 9.00 Mudaraba Crorepati Deposit Scheme 1.13 10.86Mudaraba Double/Triple Deposit Scheme 1.23 10.88Mudaraba Education Savings Deposit Scheme 1.00 9.87Mudaraba Hajj Deposit Scheme 1.05 9.40Mudaraba Lakopoti Deposit Scheme 1.10 10.55Mudaraba Marriage Deposit Scheme 1.05 10.04Mudaraba Millionare Deposit Scheme 1.11 10.70Mudaraba Monthly Benefit Deposit Scheme 1.22 11.51Mudaraba Monthly Savings Deposit Scheme 1.13 10.78Mudaraba Rural Deposit Scheme 1.13 10.00Mudaraba Pension Deposit Scheme 1.12 10.98

Source: www.jamunabankbd.com

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Intern Branch Overview: Moulvi Bazar Branch, Dhaka is one of the most potential profit-oriented branches of Jamuna Bank Limited .It is 3rd branch of Jamuna bank among all branches.

Loan Products General Loan Facility:

Letter of Credit, Bank Guarantee, Cash Credit, SOD, Loan(general) Hire Purchase, Lease Finance, LIM, LTR, Work-order Finance, Export Finance, House Building Loan, LDBP and FDEBP.

Retail Credit Products:Any purpose lifestyle loan, Loan against salary, CNG conversion loanHousehold durable load, Car loan, Travel loan, Consumer loan, Study loan, Jamuna Bank Limited Debit & Credit Card, Doctors loan, Marriage loan etc.

Electronic Products

Real time On-Line any branch banking24 hours ATMVISA Debit cardVISA Credit cardVISA Dual Gold Credit CardVISA Gold Credit CardVISA Prepaid Gift CardVISA Prepaid Travel CardVISA Classic Credit CardTelephone bankingSMS bankingInternet banking

Loans and Advances

Thought there was an unfavorable business environment due to world economic recession throughout the year Jamuna Bank Limited was in constant effort to explore areas of credit operation and could raise the credit portfolios to 104.49 crore in 2010 with an increase of 30.52 (29.21%) over that the preceding year. The total credit was on 2009 was 73.97 crore. In order to compliance with regulatory requirements for avoiding risk of exposure to single borrower, concentration on large loans, to bring in excellence in credit operation in relation of risk management, yield, exposure, tenure, collaterals, security valuation etc. Jamuna Bank Limited strived for under diversification of credit portfolios, its credit

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facilities were concentrated on trade financing., project financing, SME finance, wholesale retail trade, transport sector, hospital and diagnostic centers and other finance, capacity additions to the manufacturing sector and structured financing for developing infrastructure of the country. Jamuna Bank Limited always maintain well-diversified portfolio.

Table 1.1 Loans and Advances of Jamuna Bank Limited, Moulvi Bazar Branch

Source: Foreign Exchange Department, Jamuna Bank Ltd., Moulvi Bazar Branch.

3.8.2 SERVICES:

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Loans and Advances

Year TK.(Crore)

2006 33.37

2007 49.13

2008 40.77

2009 73.97

2010 104.49

Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segment of the society within the purview of the rules and regulations as laid down by the Central Bank and other Regulatory Authorities.

Online Banking:

Online Banking has so far been activated for all Branches of the Bank from January 01, 2006. Online service is now available for all customers –Both Cash deposit and withdrawals, Cheque Deposits and Transfer in CD, SB, STD, Loan accounts (Cheque Bearing within limit). Monthly Saving account will not fall under online transaction service.

Online Banking Times & Charge Applicable:

Sunday to Thursday, Hours - 10:00 am to 3:00 pm Saturday, Hours - 10:00 am to 1:00 noon (only in open branches on Saturday) 

Account wise Online Banking Limit (cash withdrawal, deposit and transfer):

Maximum Deposit Limit Tk. 500,000.00 per transaction Cumulative deposit shall not be more than TK.10, 00,000.00 per day Maximum Withdrawal Limit Tk. 300,000.00 per transaction. Cumulative withdrawal shall not be more than TK.600, 000.00 per day Charges for Online Banking.

Table 3.3: Charges for Online Banking of Jamuna Bank Limited

Intra City Inter City Mode of Realization

Free BDT (Amount *.075) +VAT. ButUp to 500000 – always TK.250

Up Front Cash

Source:www.jamunabankbd.com.

3.9 PRINCIPAL ACTIVITIES:

The Jamuna Bank Limited (Moulvi Bazar Branch) offers various types of general banking components. They are very essential tools for the bank to serve the customers. To attract new customers the bank has to launch new components or re-furnished their existing products.Their components of general banking are as follows: (a) Account and Schemes (b) Receipt and Payment of cash (c) Remittances (d) Clearing

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(e) Loans and Advances (f) Foreign trade (g) Credit administration and monitoring

3.10 SWOT ANALYSIS OF JAMUNA BANK LIMITED:

For analyzing performance I have selected general banking division. After analyzing the general banking division for Jamuna Bank Limited, I have found some strengths, weakness, opportunity and threats of this bank. And from this point we can do a SWOT analysis of Jamuna Bank Limited.

SWOT analysis means –S --- StrengthsW --- WeaknessO --- OpportunityT --- Threats

3.10.1. Identification of Strengths, Weakness, Opportunities and Threats of the Jamuna Bank Limited

Strength of Jamuna Bank Limited general banking Department

During my working period I have observed 30 existing customers then I have found the following criteria that are strength of Jamuna Bank Ltd. General banking department, Moulvi Bazar Branch.

1. Computer base facility each and every working activities.2. Efficiency and effectiveness of the employees.3. Loyal customers.4. Formal training program for new employee.5. Formal and Informal training program for existing employee.6. Jamuna Bank Limited is newly commercial bank in banking sector but they builds

strong reputation in short time.7. They provide extra ordinary service to their customer.8. The top management of the bank, the key strength for the JBL has contributed

heavily towards the growth and development of the bank.9. Strong network throughout the country and provide quality of service to every

level of customer.

Source: Staffs, new customers, existing customer’s general banking Department, Jamuna Bank Ltd., Moulvi Bazar Branch.

Weaknesses of Jamuna Bank Limited genaral banking Department

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During my working period I have observed 30 new customers & existing customers then I have found the following criteria that are weakness of Jamuna Bank Limited general banking department Moulvi Bazar Branch. These are:

1. Inadequate place.2. High discrepancies charge.3. Some printing mistake those customers may lose time & money.4. There is not sufficient Office stuff enough for operating Department.5. Advertising and promotion is one of the weak point of Jamuna Bank Limited does

not have any effective plan for aggressive marketing activities.6. Higher service charge in some areas of banking operation than that of nationalized

banks discourages customers from opening or maintaining account with this bank.7. PC bank is not comprehensive banking software. It is desirable that of

comprehensive banking system should replace PC bank system.

Opportunity of Jamuna Bank Limited general banking Department

1. By reducing SWIFT charge new customer may attracts.2. Jamuna Bank Limited can pursue diversification strategy in expanding its current

line of business. 3. The credit facility offered by JBL has attracted security and status conscious

businessman and well as service holders with higher income group.4. Jamuna Bank Limited can evaluate the option of lunching Credit Card and Visa

Debit Card system.5. By offering financing facility.6. Jamuna bank provided money transfer in online from one place to another place

all over the world.7. Jamuna bank provided online banking system to customer money and cheque.

Threats of Jamuna Bank Limited general banking Department

1. New entry of competitors.2. Lack of promotional activities for the clients.3. To compete with the other commercial bank in Bangladesh; general banking

department of Jamuna bank Ltd. Moulvi Bazar Branch; need to improve their service quality.

4. Default culture is very much familiar to our country. For a bank, it is very harmful.

5. The central bank exercises strike control over all banking activities in local banks like Jamuna Bank Limited.

6. Rival bank easily copy the product offering of JBL. 7. Sometime political loans are threats for this banking service.8. Some customers join to another bank because customer does not satisfy.

3.10.2 CONCLUSION:

From the very of civilization of time Banking activities is a critical job and the present days banking business is very competitive and complex. Banking sector, as a service

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sector of Bangladesh continues to contribution to a great deal in the economy of Bangladesh.

Jamuna Bank Limited is the Third generation most modern commercial bank which has passed four years in operation and now enjoying the fifth year of operation. In this age of competition, every bank is passing the operational functions in hard competition. Jamuna Bank Limited is marching in an aggressive way to reach the all levels of clients and customers, which ensure certain, and mentioning position in the market.

This report is being done on the subject of the General Banking Operation of Jamuna Bank Limited, on Moulvi Bazar Branch. From the survey and observation of the study I try to gain some practical experience on critical general banking system. From the observation of the study I have gain some practical knowledge on account opening, cash receipt and payment, sanctioning of loan and advances, foreign trade and foreign exchange mechanism, local and foreign remittances, complex clearing process etc. I think this experience will set me in the advantageous position in future.

3.10.3 ACTION PLAN:

The Bank has started the process of formulating a long term Strategic Plan so as to maintain the momentum of overall growth and strong performance in its core business. To meet the changing need of the customers, Jamuna Bank Limited has planned to expand its network with the following arenas by providing Electronic Banking Products:

1. Full on-line banking2. Dealing Room services for Corporate Customer and high net worth individuals3. Introducing more innovative products and service4. Opening new branches including Islamic Banking Branches5. Expansion of business network at home and abroad6. Services/products offered7. Retail banking 8. Deposit taking including special schemes9. Remittance and collection10. Corporate Banking11. Loan syndication12. Project finance13. Investment Banking14. Import and export handling and financing15. Consumer credit16. Lease Finance17. Hire purchase18. 24 hours banking: Q-cash ATM

3.10.4 Future Plan and Prospect:

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Being a forward-looking bank, JBL is planning to open new branches. JBL has already undertaken a massive branch expansion program that would allow JBL to establish another more branch in key location of the country. The program is now waiting for Bangladesh Bank and approval.Target Market for Loans and Advances:

1. Agro-processing Industry, Textile Spinning, Dyeing and Printing, Export Oriented, Readymade Garments, Food and Allied,

2. Paper and Paper Products, Engineering and Steel, Computer Software and IT/Data Export, Export Oriented Gem, Jewelry, Export Oriented Finished Leather goods,

3. Export Oriented Jute Products, Pharmaceuticals, Export Oriented Syringe/ Needle,

4. Export Oriented Artificial Flower , Construction5. Financial Institution, Telecommunication, Construction Materials, 6. Cosmetics and Toiletries, Urban Housing, Small and Cottage Industries, Micro

Enterprise7. Infrastructure, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG)8. Small and Medium Enterprises (SME)

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Chapter-Four

4.0 PRACTICAL EXPERIENCES GATHERED THROUGH DOING

INTERNSHIP OR RESEARCH WORKS IN JAMUNA BANK

LIMITED

This report is being done on the subject of the General Banking Operation of Jamuna Bank Limited, on Moulvi Bazar Branch. From the survey and observation of the study I try to gain some practical experience on critical general banking system. From the observation of the study I have gain some practical knowledge on account opening, cash receipt and payment, sanctioning of loan and advances, foreign trade and foreign exchange mechanism, local and foreign remittances, complex clearing process etc. I think this experience will set me in the advantageous position in future.

I have achieved some practical experiences gathered through for doing internship work in these organizations given some solution under below:

1. Jamuna Bank Limited has 16 deposit schemes but they are not giving equal focus on all schemes; so, they should try to update all type of deposit schemes.

2. As an Islsmi banking company Jamuna Bank Limited should emphasis on their mudaraba hajj, mohar and marriage schemes.

3. Jamuna Bank Limited should increase the profit rate on housing deposit scheme.

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4. The Bank should increase their loan facility on deposit schemes.5. The Bank should offer better training program to their employees about Millionaire

Scheme and lakhpoti scheme. Because these are special schemes of Jamuna Bank Limited.

6. The Bank should decrease their service charge on Al – Wadiah Current Deposit to improve their SME service.

7. The Bank should increase loan facilities to improve their profitability. 8. Officers whom are involved in Customer Services should be trained properly.

Because some time they cannot give proper suggestions to the customer queries. Though they try to give their best.

9. The Bank should update their software and systems to satisfy their customers by providing quick service.

10. The Bank should increase the number of branches and ATM booth.11. To earn and maintain CAMEL Rating ‘Strong’.12. To establish relationship banking and improve service quality thought development of

Strategic Marketing Plans.13. To remain one of the best bank in Bangladesh in terms of profitability and asset

quality.14. To introduce fully automated systems thought integration of information technology.15. To ensure an adequate rate of return on investment.16. To keep risk position at an acceptable range (including any off balance sheet risk).17. To maintain adequate liquidity to meet maturing obligations and commitments.18. To develop and retain a quality work force thought an effective Human Resources

Management System.19. To ensure optimum utilization of all available resources.20. To pursue an effective system of management by ensuring compliance to ethical

norms, transparence and accountability in all levels.

I have also learned some information to discuss under below:

Average:

An average is single value, which is considered as the most representative or typical value

for a given set of data.

Bad debts:

Bad debts are considered as fixed expenses being it is generally treated as administrative

expenses, which are fixed in future.

Banks:

Banks are considered as service producing industry and standard norms for industrial

enterprises are used in some cases to compare ratios.

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Banker:

In this study banker means as it is defined by English Bill Of Exchange Act 1882 i.e.

“Banker inched a body of person whether incorporated or not who carry on the business

of banking”.

Borrower:

In this study a borrower is a person who enjoys credit facilities from the bank in order to

start or organize an enterprise especially one involving financial risk.

Burden:

The different between non-interest /profit expense and non-interest/profit income is

defined as the Burden.

Capital structure:

Capital structure refers to the permanent financing of the company represented by owned

capita and loan/debt capital.

Consumers Credit Scheme (CCS):

Consumer Credit is a relatively new field of collateral-free finance of the Bank. People

with limited income can avail credit to buy household goods including car computer and

other consumer durables.

Crossed Check:

Those which can only be paid to banker for crediting the proceeds to the accounts of its

payee is called Crossed Check.

Current assets:

Current assets include cash in hand and with bank, investment and other assets.

Current liabilities:

Current liabilities include deposits and other accounts (other than fixed deposits and deposit

pension scheme) bills payable and other liabilities.

Customer:

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In this study customer means “A person who has some sort of an account either deposit or

current account or some similar relation with a bank and from this it follows that any

person or corporation may become a customer by opening deposit or current account or

by accepting an once on current or loan account or even by accepting a deposit receipt in

acknowledgement of money left with the banker.

Equity:

Equity includes paid up capital quasi-equity, reserve fund and other reserves.

Foreign Exchange:

Foreign Exchange means foreign currency and it includes any instrument drawn,

accepted, made or issued under clause (13), Article 16 of the Bangladesh Bank Order,

1972. All deposits, credits and balances payable in any foreign currency and draft,

travelers check, letter of credit and bill of exchange expressed or drawn in Bangladeshi

currency but payable in any foreign currencies.

Gross profit:

Gross profit is the result of the relationship between prices sales volume and costs.

Hire Purchase:

To purchase some things, the Bank gives loan to client at 15% interest. The client has to

pay the principle and interest as a installment basis for a fixed period. Security is needed

here. The goods must have insurance by Insurance Company.

Lease Finance:

This has been designed to assist and encourage the genuine and capable entrepreneurs and

professionals for acquiring capital machinery, medical equipment, computers and other

items, which may help them to be economically self-reliant. Terms and conditions of this

credit have been made easier than before in order to help the potential entrepreneurs to

acquire equipment of production and services and repay the liability gradually from

earnings on the basis of “Pay as you earn”.

Letter of Credit:

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The contract between the importer and the exporter is given a legal shape by the banker

(authorized dealer) who undertakes to make the payment for the imports on behalf of the

importer.

Net Worth:

Net worth is the wealth of the shareholders at book value. It is the difference between

total assets and total liabilities.

Payment against Document (PAD):

The bank pays the money to the foreign company against Foreign L/C on behaves of his

client. The client pays this amount and interest later to bank.

Pledge:

In a pledge the customer delivers the possession of the securities to the banker and the

banker holds the possession of securities until the debt is discharged.

Ratio:

Ratio is a fraction whose number is the antecedent and denominator the consequent. It

may also be defined as the relationship or proportion those one-amount bears to another,

the first number being numerator and the later denominator.

Small Loan Scheme:

This scheme has been evolved especially for small shopkeepers who need credit facility

for their business and cannot provide tangible securities. The present maximum range of

loan is Tk.2.00 Lac.

Spread:

The difference between total interest/profit earned and totals interest/profit paid. It plays a

major role in determining the profitability of a bank.

Total income:

Total income is considered as total income after provision for bad and doubtful debts.

Working capital:

40

Working capital refers to the net working capital i.e. (current assets – current liabilities.

41

Chapter- Five

5.0 FINDINGS AND ANALYSIS REGARDING THE OBJECTIVES OF THE STUDY

Findings of the study:

Ensure collection of periodical reports, returns and information about the borrower and

the activities of projects financed.

1. The competing banks performance should be carefully monitor regularly.

2. New branches should be opened in the economically promising area.

3. Attractive incentive packages should be provided to the exporter.

4. Political and organizational pressure should be eliminated in case of sanctioning

loan.

5. Account opening process should be made easy to attract the customer.

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6. New and modern banking equipment should be arranged for providing better

services.

7. Flora Bank, the online banking software should be regularly updated.

8. Bankers and Customers relation should be closer and regular communication with

the customer should be maintained.

9. Bank should regularly review and update the present marketing strategy.

10. Banks own training institute should be established.

11. Jamuna Bank has lack of training packages.

12. It has lack of compensation packages.

13. The promotion procedure of Jamuna Bank Ltd. is sluggish and time consume.

14. As the recruitment procedure is predetermined the recruitment is usually fair and nonbiased.

15. Interview method is ok but clumsy.

16. In my view the job evaluate is more complex and back dated. The evaluate process is costly and also time consume.

17. Lack of socialization among new appointed and the seniors. The gap between newly appointed officers and senior bosses is visible.

After analyzing data I have identified some problems these are:

1. The maturity period of millionaire scheme is longer so clients get low profit.2. Service charge for MSS, LDS, and Current Deposit is high.3. The Bank does not have sufficient Branches and ATM booth for providing better

customer service.4. The monthly installment of hajj, mohar and lakhpoti schemes are not affordable

for all types of customers.

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5. Marketing activities of this branch is not so effective though the branch manager tries to make it more effective using delicate attachment to the clients or organization.

6. Employees does not offer loan against MDS/MTDR when any client want to close his/her account.

7. In housing deposit scheme the maturity period is longer and the monthly installment is also high so it is difficult for the bank to get client.

8. The Bank provides lower facility against deposits loan.9. Now maturity period of double and triple benefit schemes is 8 years &6 months

and 13years& 3 months in stand of 7years&6 months and 11year &3 months respectively so customers get low profit.

10. Jamuna Bank LTD has 16 deposit schemes but employees don’t have proper knowledge about their housing, marriage, and small business deposit schemes.

11. Though Jamuna Bank is an Islamic Banking Company Act, but they do not emphasis on their hajj and mohar deposit schemes.

12. The employees of saver branch do not have good knowledge about hajj scheme.

Chapter- Five

CCCCCCOC Chapter-

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Chapter- SIX

6.0 CONCLUSION AND RECOMMENDATIONS

Chapter- Five

Chapter Cha

Conclusion:

From the very of civilization of time Banking activities is a critical job and the present

days banking business is very competitive and complex. Banking sector, as a service

sector of Bangladesh continues to contribution to a great deal in the economy of

Bangladesh.

Jamuna Bank Limited is the Third generation most modern commercial bank which has

passed four years in operation and now enjoying the fifth year of operation. In this age of

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competition, every bank is passing the operational functions in hard competition. JBL is

marching in an aggressive way to reach the all levels of clients and customers, which

ensure certain, and mentioning position in the market.

This report is being done on the subject of the General Banking Operation of Jamuna

Bank Limited, on Moulvi Bazar Branch. From the survey and observation of the study I

try to gain some practical experience on critical general banking system. From the

observation of the study I have gain some practical knowledge on account opening, cash

receipt and payment, sanctioning of loan and advances, foreign trade and foreign

exchange mechanism, local and foreign remittances, complex clearing process etc. I think

this experience will set me in the advantageous position in future.

Some Recommendations to overcome the problems:

Jamuna Bank limited as a new generation commercial bank has facing a lot of problems

in compare with the other banks. These problems are related to operation of daily banking

activities, opening new branches, Bangladesh Banks rules and regulations, customer

services, customer behavior, maintenance of liquid assets, lack of experienced personnel

etc. The problems faced by the bank are recorded as follows:

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1. The first problem is related to increasing market competition. As a new bank JBL

has facing some problems in case of compete with some well-set banks.

2. As a new bank JBL facing the lack of experienced personnel which create some

problem in case of offering better service to the customers and clients.

3. The overall high cost of capital is a barring to its market expansion and due to this

the operational expenses are increased.

4. High cost of setting the latest technology based services is an obstacle to its rapid

expansion.

5. All customers are not concerned about the latest technology based services and all

are not readily interested to accept the technology-based services.

6. High cost of technology based services is an obstacle. Due to this customer are not

interested to take these services.

7. Incase of online banking low speed of network is a problem and it consumes

valuable time of the busy customers.

8. Due to BB order among every five branch one branch should be open in the rural

area. But these branches are always not able to produce the expected return to the

bank.

9. Overall political unrest is an indispensable problem to the bank to provide regular

service to its customers.

10. In case sanctioning loan always it is not possible to study the proposal due lack of

time and experienced manpower.

11. JBL uses Flora Bank (Online Banking Software) which is not comprehensive

software for modern banking.

12. Due to increased competition JBL has to facing increasing promotional and

advertising cost and it is an obstacle to rapid expansion to reaching the large

people at a time.

13. In case of appointment of personnel the disguised pressure of owner group creates

some unavoidable problem.

14. Due to tremendous financial strength of Multinational Bank JBL has facing to

some problem.

15. Insufficient salary of junior officer is an obstacle to provide better services.

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A new generation commercial bank yet Jamuna Bank Limited facing to some serious

problems but it is also true that these problems may be turn into opportunity if the

authority takes some initiatives. The initiatives may be as follows:

1. The working condition should be improved. Employees must be provided with

adequate working equipment in order to provide better customer service.

2. Jamuna Bank Limited should recruit experienced personnel from other banks and

financial institutions in order to provide better and efficient banking services and

ensuring growth. Multipurpose new schemes should be introduced to attract the

clients and to enhance the deposit.

3. In case of sanctioning loan and advances the documents should be properly check

and appraised in order to ensure repayment of the loan amount.

4. Ensure the security / collateral has been assessed correctly and the security is

maintained properly.

5. Ensure that the disbursements are made as per procedure and terms of sanction.

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END MATTER

BIBLIOGRAPHY

Bank Publications:Annual Reports of JBL year 2008, Directors’ Report (page no: 114-119).Annual Reports of JBL year 2009Annual Reports of JBL year 2010, Annexure-G, Final profit to the depositors, JBL, (page No: 203).Published booklist and hand bills of Jamuna Bank LimitedCredit Risk Grading Policies of Jamuna Bank LimitedCRG Chart provided by Bangladesh Bank

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Jamuna Bank Limited General Banking Policy Book

Ahmed Uddin Jalal & Hossain Khairul Mamon (2007), A Comparative Analysis of Mobilization of Funds by Public and Private Commercial Banks, (Vol.3, No.1, July, page 26-38).

Muzadihul Hossain (2009), A Critique of Murabaha Mode of Financing by Islamic Banks, The Journal of Islamic Studies, (Vol.1, No.2, Dec, page 90-98).

Jamuna Bank Limited (JBL), “Manual for Investment under Bai-Mudaraba Mode”, (Page no. 1-8, 34-50).

Jamuna BanknLimited (JBL), “Manual for Investment under HPSM”, (Page no. 1-3, 4-8).Annual Report2010.

Jamuna Bank Limited (JBL), “Business Development Conference 2010(Annual Report)” Page No: 215-217.

SWOT ANALYSIS: /www.quickmba.com/strategy/swot/

Website:

www.jamunabankbd.comwww.bangladeshbank-bd.org

ACRONYMS

AOF = Account Opening FormATDP = Account Transfer Deposit ProgramBB = Bangladesh BankBCD = Bearer Certificates of DepositBLC = Bills under Letter of CreditBTB = Back to BackCC = Cash CreditCC (Hypo) = Cash Credit HypothecationCC (Pledge) = Cash Credit PledgeCD = Current Deposit AccountCIB= Credit Information BureauCIBTA =Credit Inter Branch Transfer AccountCRISL= Credit Rating Information and Services Limited.CRR = Cash Reserve RequirementCRR = Credit Risk Rating CCS = Consumer Credit SchemeDBDS = Double balance Deposit Scheme DD = Demand Draft

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Dl = Demand LoanEDF = Export Development FundERF = Exporters Retention QuotaFBL = Foreign Bill Lodged FC = Foreign CurrencyFDBP = Foreign Document Bills PurchasedFDR = Fixed Deposit Receipt FEX = Foreign ExchangeGBD = General Banking DivisionGOB = Government of BangladeshHO = Head OfficeIBCA = Inter Branch Collecting AccountIBTA = Inter Branch Transfer AccountIBC = Inter Branch CollectionIRC = Import Registration CertificateI S A/C =Interest Suspense AccountJBL= Jamuna Bank LimitedLBC = Local Branch CollectionLDBP = Local Document Bills PurchasedLIM = Loan Against Import MerchandiseLRA = Lending Risk AnalysisLTR = Letter of trust ReceiptMPPS = Monthly Profit Paying SchemeMSS = Monthly Savings SchemeMD = Managing DirectorsNFCD = Non- Residential Foreign Currency DepositOBC = Others Branch CollectionPO = Payment OrderRFCD = Residential Foreign Currency DepositSB = Savings AccountSD = Sundry DepositSOD = Secured OverdraftSTD = Short Term DepositEXIM = Export Import

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