report on exim bank

8/12/2019 Report on EXIM Bank

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A Project Report

OnOverall Banking Activities of Export

Import Bank of Bangladesh LT!"

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22ndMay, 2011.

Md. Auib Ali

Supervisor of the reportLecturer ofBusiness studiesASA University Bangladesh

Subject : Submission of Project Report.

Dear Sir,With due respect I would like conve to our knowled!e th"t "s per m #B$ Pro!r"m Ih"ve prep"red m project report under the topic of % Overall Banking Activities of ExportImport Bank of Bangladesh LTD & under our kind supervision. 'ow I like to submit mreport to ou. I h"ve tried m best to prep"re the report in consistence with the optim"lst"nd"rd under our v"lu"ble direction.

I re(uest ou modestl to "ccept m report "s it m" suffer from some shortcomin!s. Idesired "nd ende"vored to m"ke this report " complete one.

)herefore, I hope th"t this will meet the st"nd"rd of our jud!ment.

)h"nkin! ou for our kind supervision.

Sincerely yours

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Table of Content

CHAPTER CONTENT PAGE

Acknowledgement .. 7

Executive summary 8

Acronyms ...

!re"ace 10

1 Introduction

a.Introduction...... 12

b.Objective of the report... 12

c. Scope of the report ... 1#

d. Sources of data 1#

e.Limitations. 1#

f. Origin of the report .. 1$

g.Methodology 1$

2 Overview of te ban!a.Historical background of EXIM ank L!"# 1%&22

b.$unctions of EXIM ank angladesh Ltd# ... 22

c. %alues of EXIM ank 2#

d.&onversion into Islami anking 2#

e.&orporate cultures of EXIM ank Limited 2#

f.&orporate Mission of EXIM ank Limited. 2#

g.Social &ommitment of EXIM ank Limited 2$

.'chievements of EXIM ank Limited. 2$I. Overall(erformance of EXIM ank Limited 2'

".oard of "irectors of EXIM ank Limited.. 2%

!.Shariah &ouncil of EXIM ank Limited 2%l.Hierarchy of (osition Structure of EXIM ank 27

#.Organism of Head office 28

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n.ranch net)ork of EXIM ank... 2

o.*ature of usiness............ #1

$. %ision and mission of EXIM ank... #1

2 %. Sponsors ... #1

r.Management of EXIM ank. #1&.&orporate Slogan.. #2

' Anal(&i& of E)I* +an! ,i#ited

a.(roductivity 'nalysis.... #$'

b.(rofitability 'nalysis... #%

- oreign E/cange

a.$oreign E+change.. #8b.'uthori,ed "ealers -'". / Money &hangers . #8c.Import !rade . #

d.Shipping "ocuments . $0&$1e.Letter of &redit -L0&. .... $2f.ankers 'cceptance.......... $2&$#

g.Endorsement of Import "ocument for &ustom &learance $#

.E+port !rade. $$&'1

0 e$art#ent wi&e Activitie&

a.'ccount opening1 !ransfer / &losing '#&%'

b.2emittance / ill section %'

c.&ash section %%&%8

d."eposit section %8&7#

e.&learing section.. 7#&7$

f.'ccounts section.. 7$&7'

+an! 3ervice Policie&

a. &ustomer Service anking.. 77&78

b. &hannels of "istribution of anks.. 7

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c.Electronic Methods of "istributing $inancial Service 7&81

4 Product& 5 3ervice& of E)I* +an!

a.(roducts 8#&87

b.(roduct (ricing 87&0

c."ifferent &ommunication &hannels for customer 0&2

d.(lace Strategy of EXIM ank .. #

6 Inve&t#ent &ervice $ractice& of E)I* +an!

a. !ypes of Investment $acilities offered by EXIM ank '&8

7 38 O T Anal(&i& of E)I* +an! 100&102

19 inding& 5 Reco##endation 10$&107

11 A$$endi/

ibliography / 2eferences 10

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CKNOWLEDGEMENT

At the very beginning, I would like to express my deepestgratitude to almighty ALLAH for giving me the strength andcomposure to finish the report.

Words actually will never be enough to express hoe gratefulI am, but never the less I will try my best to express mygratefulness toward some people.

specially thanks to !d. Auib Ali, Lecturer of ""A program,

A#A $niversity "angladesh. %hey gave a proper guidance toprepare a report.

I am also grateful to &I! "ank of "angladesh Limited togive me a support to make a 'ro(ect )eport on *+verall"anking Activities of xport Import "ank of "angladesh

L%.-

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Executive Summary

A (ank is an economic institution w)ose main aim is to earn *ro"it t)roug) exc)angeo" money + credit instruments. t is a service oriented as well as *ro"its oriented

organi-ation. )e (ank divides its o*eration mainly t)ree *arts& /eneral (anking,

oan + Advances and oreign Exc)ange.

)e anking sector o" (anglades) is *assing t)roug) a tremendous re"orm under t)e

economic deregulation and o*ening u* t)e economy. 3urrently t)is sector is

ecoming extremely com*etitive wit) t)e arrival o" multinational anks as well as

emerging and tec)nological in"rastructure, e""ective credit management, )ig)er

*er"ormance level and utmost customer satis"action.

)e *ro4ect re*ort )as een *re*ared on 56verall (anking Activities o" EM (ank

imited a case study on cor*orate (ranc), /uls)an, 9)aka.: (ank )as a signi"icant

role in t)e economic develo*ment o" t)e country. )e success"ul anking usiness

ensures t)e growt) o" t)e economy y t)e e""ective uses o" t)e "unds. n order to

develo*ing t)e national economy, anks kee* in mind going "or lending, maintaining

sa"ety, li;uidity + *ro"itaility.

EM (ank imited was introduced in (anglades) as a anking com*any under t)e

3om*any Act 11# + commenced o*eration on 2

nd


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Acronyms

A/C Account

AD Authorized Dealer B/L Bill of LadingBB Bangladesh BankBOE Bill Of ExchangeCC Cash CreditC & Clearing & or!ardingC" Clean "e#ort indingsCC$ & E Chief Controller of $%#ort & Ex#ortC Clearing & or!ardingC" Cost & reightC$B Credit $nfor%ation BureauC$ Cost $nsurance & reight

DD De%and DraftD 'ote De%and ro%issor( 'oteEB Ex#ort ro%otion BureauE"C Ex#ort "egistration CertificateE) Ex#ort or%C oreign Currenc(D" ixed de#osit recei#tDD oreign De%and DraftOB ree On Board*O *ead Office$BC $n!ard Bills for Collection$BCA $nter Branch Credit Ad+ice

$BDA $nter Branch Debit Ad+ice$BC, $nter branch Credit ,ransaction$M $%#ort or%$"C $%#ort "egistration CertificateL$M Loan against $%#orted MerchandiseL," Loan against ,rust "ecei#tL/C Letter of CreditLCA Letter of Credit Authorization or%MD" Mudaraba De#osit "ecei#tM-- Mudaraba Monthl( -a+ing -che%eMM- Mudaraba Multi#lus -a+ing -che%eOBC Out!ard Bills for Collection

AD a(%ent against Docu%entO a(%ent Order -$ re -hi#%ent $ns#ection-,D -hort ,er% De#osit-$, -ociet( for orld!ide $nter bank inancial,C ,ra+elers Cheue,$' ,ax $dentification 'u%ber," ,ruck "ecei#t,, ,elegra#hic ,ransfer

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PREF CEA *ro4ect re*ort is essential "or students "or overall understanding aout an

organi-ation.

)e to*ic o" my *ro4ect re*ort is 56verall (anking Activitieso" Ex*ort m*ort

(ank o" (anglades) 9:. 6n t)is to*ic )ave selected.


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1

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1. (a) INTRODUCTION

Generally by the word Bank we can easily understand that the financial institution dealswith money. But there are different types of banks like; Central Banks, Commercial

Banks, Savins Banks, !nvestment Banks, industrial Banks, Cooperative Banks etc. Butwhen use the term Bank without any prefi", or #ualification it refers to the $commercialbanks%. Commercial banks are the primary contributor to the economy of a country. So wecan say commercial banks are a profit makin institution that holds the deposit of theindividuals & business in checkin & savins account and than uses these funds to makeloans. 'or these, people and overnment are very much dependent on these banks asthe financial intermediary. (s banks are profit earnin concern; they collect deposit at thelowest possible cost and provide loans and advances at hiher cost. )he differencesbetween two are the profit for the bank.

Bankin sector is e"pandin its hand in different events every day. (t the same time the

bankin process is becomin faster, easier and the bankin arena becomin wider. (s thedemand for better service increases day by day, they are comin with different innovativeideas and products. !n order to survive in the competitive field of the bankin sector, allbankin orani*ation are lookin for better service opportunities to provide their fellowclients. (s a result, it has become essential for every person to have some idea on thebank and bankin procedure.

+roect is very essential for every student, especially for the students of businessadministration, which helps them to know real situation. 'or this reason a student takes theproect at the last stae of the BB( deree, to launch a career with some e"perience.

1. (b) Objectives of the report)he followin are the eneral & specific obectives of the report.

General Ob"ective&:

)he eneral -bectives of the report are as follows

)o fulfill the academic re#uirements of +roect report. )o ac#uire e"perience in different bankin services of /0!1 Bank.

3$ecific Ob"ective&)he specific obectives of the study are as follows

)o present an overall bankin activities. )o ather knowlede.

)o et a clear idea about Banks and how it runs and what 'unction it does. )o ather comprehensive knowlede of the eneral bankin 'unction and the

e"pectations of the customers reardin the Service level of the bank.

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1. (c) Scope of the report)he scope of the study is only limited to Corporate Branch of /0!1 Bank. )he report coversits overall department wise function, structure and performance. )he report also covers

details about /0!1 Bank.

1. (d) Sources of data

,he 0ri%ar( sources1 are as follo!s2

'ace2to2face conversation with the respective officers and stuffs of the branchand head office.

'ace2to2face conversation with clients visited the branch. +ractical work e"perience in the different desk of the department of the

branch covered. 3elevant field study as provided by the officer concern.

,he 0-econdar( -ources3 of data and the infor%ation are2

(nnual 3eport of /0!1 Bank 4td. 5ebsite of the /0!1 Bank 4td. 6arious book articles reardin eneral bankin functions, 'orein e"chane

operations and credit policies. 7ifferent procedure manual published by /0!1 Bank 4td 7ifferent circular sent by head office or /0!1 Bank 4td. and Banladesh Bank.

1. (e) Liitatio!s !t was very different to collect the information form various personnel for the ob

constrain.

Bank policy was not disclosin some data and information for obvious reasons. 7ue to time limitation many of the aspects could not be discussed in the present report. Since the bank personals where very busy, they could provide me little time. (nother sinificant problem faced durin the preparation of this report was the

contradictory e"planation of a sinle subect by different employee. Because of the limitation of information some assumption was made. So there may be

some personal mistake in the report.

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1. (f) Ori"i! of the report( re#uirement for my 1asters of Business (dministration proram ! have conducted thisreport on $$-verall Bankin activities of /0!1 Bank Banladesh 4imited. ! prepared this

report under the supervisor of 1d. (uib (li, lecturer of Business Studies $$(S( 8niversityBanladesh%%.

1. (") #ethodo$o"%)his report has been prepared on the basis of e"perience athered durin the period ofinternship. 'or preparin this report, ! have also et information from annual report andwebsite of the /0!1 Bank 4td. ! have presented my e"perience and findin by usindifferent charts and tables, which are presented in the analysis part.

,he details of the !ork #lan are furnished belo!2

Data collection %ethod2

3elevant data for this report has been collected primarily by direct investiations of differentrecords, papers, documents, operational process and different personnel. )he interviewswere administered by formal and informal discussion. 9o structured #uestionnaire hasbeen used. !nformation reardin office activities of the bank has been collected throuhconsultin bank records and discussion with bank personnel.

Data sources2

)he information and data for this report have been collected from both the primary andsecondary sources.

Data #rocessing2

7ata collected from secondary sources have been processed manually and #ualitativeapproach has been used throuh the study.

Data anal(sis and inter#retation2

:ualitative approach has been adopted for data analysis and interpretation takin theprocessed data as the base. So the report relies primarily on an analytical udment andcritical reasonin.

1#


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&

1$


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2. (a) 'istorica$ ac"rou!d of

*+I# a! Ltd

/0!1 Bank 4td. was established under the rules and reulations of Banladesh Bank and

the Bank companies act.


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,uthori-ed Capita$ /aid up capita$

)e ank started wit) an aut)ori-ed ca*ital o" k. 100 crore in 1 and as on #1st9ecemer

200$ *aid u* ca*ital stood at k. %2.78 crore. )e *aid u* ca*ital stood at k. 21$.22 crore

as on #1

st

9ecemer 2007.

;ear Autori? In Crore Paid @$ Ca$ital =T!? In Crore

200% 100 %2.78

2007 100 87.8

2008 #'0 171.#8

200 #'0 21$.22

2010 $00 2%7.77'

Table 91: Autori


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Reserve fu!d a!d other reserve

n t)e year 200$ t)e total reserve was taka #'.7# 3rore, ut in t)e year 200', it was increased

on taka '7.00 3rore y t)e di""erence is taka 21.27 3rore. At t)e year o" 2008 it is reac)ed at

taka 1%2.#0 3rore.

;ear A#ount =T> in Crore?

200% #'.7#

2007 '7.00

2008 81.0

200 11#.$%

2010 1'#.2%

Table 92: Re&erve und of E)I* +an!.

igure 92: Re&erve und of E)I* +an!.

Deposit

A@@F

A@@

A@@

A@@H

A@@I

A@@ in CroreD

Eear A@@ A@@H A@@I A@@< A@@

(mount )> in CroreD=.H= H I.@< =.F =.A

A = F

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;ear A#ount of e$o&it =T! In Crore?

200% 107.82

2007 28#1.2

2008 #'0#.20200 $1'$.%%

2010 '7'8.70

Table 9': e$o&it Po&ition of E)I* +an!.

igure 9': e$o&it Po&ition of E)I* +an!.

I!veste!t

A = F

Eear

(mount of 7eposit )k !n Cro


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6n 9ecemer #1, 200 t)e total amount o" investment is taka #'$.'8 3rore, w)ic) was taka

#2%$.1# 3rore last year. 6n 9ecemer #1, 2010 t)e total amount o" investment is taka

$77'.%2 3rore, w)ic) was taka #'$.'8 3rore last year. )e amount )as increased y taka

821.0$ 3rore. )e notale investment re*resents de*loyment in reasury ills and @)ares,

!ri-e ond + ot)er.

;ear A#ount =T> in Crore?

200% 1##.2$

2007 2%0$.%#

2008 #2%$.1#

200 $01.'2

2010 '#%#.77

Table 9-: Inve&t#ent Po&ition of E)I* +an!.

>ear? 5? 5@455=? :9;;.4=? ::@

455


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igure 9-: Inve&t#ent Po&ition of E)I* +an!.

,!a$%sis of Capita$ Structure

Capital structure of /0!1 Bank has chaned from year to year. )he components ofthe capital structure and paid up capital; proposed cash dividend, retained earnins

and other reserve.

Corporate I!foratio! at a 0$a!ce

$nfor%ation as #er last Annual "e#ort 4558

9ame of the bank /0!1 Bank -f Banladesh 4imitedStatus +rivate 4imited Company

7ate of !ncorporation AndJune, a*i 1asihur 3ahman

(uthori*ed Capital )>. =@ Crore.

+aid2up Capital )>. AH.77 Crore.

7irectors A

9umber of Branches FF

7eposits )>. '7'8.70Crore

4oan )>. 2%07.0%Crore

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9umber of /mployees =A

Iport usi!ess

!mport business is considered as an important sement of forein e"chane business.7urin the year, the bank opened =F,== import letter of credit and the import volume stoodat )k. HIF.@ Crore with a rowth of AH.


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i. (bove all, /0!1 Bank helps the businessmen financially by ivin discount facilityfor bill of e"chane and by providin the facility of letter of Guarantee.

&.(c) 4a$ues of *+I# a!. )o be one /0!1 by holdin and uidin the followin values.A. )o have stron customer focus and build relationship based on interity and superior

service and mutual benefit.=. )o strive for private and sound rowth.F. )o work as a team to serve the best interest of the orani*ation.. )o work for continuous business innovation and improvements.. )o value and respect people and make decision based on merit.H. )o provide reconition and communication.

&.(d) Co!versio! i!to Is$ai a!i!"!n the /"tra -rdinary General 1eetin held on 7ecember AI, A@@ and obtaininconfirmation form the honorable ?ih Court 7ivision of Banladesh Supreme Court, theirbank had been converted into a full2fleded !slami Bank based on Shariah from traditionalinterest based bankin and at the race of (lmihty (llah they started functionin as an!slami Bank with effect from stJuly A@@ with the approval of Banladesh Bank. Beforeconversion they put option to all of bank valued customers throuh news media in additionto personal contract with them to accept the decision taken by them. !t%s a reat pleasurethat every body ladly accepted the conversion with appreciation.

&. (e) Corporate cu$tures of *+I# a!Liited)he bank is one of the most distinctive corporate cultures. )here they lived in sharedmeanin, shared understandin and shared sense makin. +eople can see andunderstand events activities obects and situation in distinctive way. )hey maintained theirmanners eti#uette, character individually to suit the purpose of the bank and the needs ofthe customers who are of paramount importance to them. )he people in the bank seethemselves as a tiht teamLfamily that believed in workin toether for rowth.

&. (f) Corporate #issio! of *+I# a! Liited )o provide hih #uality financial services in e"port and import trade. )o provide e"cellent #uality customer service. )o maintain corporate and business ethics. )o become trusted repository of customers% money and their financial advisor. )o make superior and rewardin to the customersLshareholders.

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)o display team spirit and professionalism. )o have a sound capital base.

&. (") -ocial Co%%it%ent of E)I* Bank

Li%ited

)he purpose of bankin business is, obvious; to earn profit, but the promoters and the

e#uity holders are aware of their commitment to their society to which they belon. ( chunk

of the profit is kept aside andLor spends for socio economic development throuh trustee

and in patroni*ation of art, culture and sports of the country. )he institution wants to make a

substantive contribution to the society where it operates, to the e"tent of its separableresources.

&. (h) ,chievee!ts of *+I# a!Liited

!t is a reat pleasure that by the race of (lmihty (llah, /0!1 have mirated at a time all

the branches from its conventional bankin operation into Shariah based !slami bankin

operation without any trouble. 4ot of uncertainties and adversities were there into this

miration process. )he officers and e"ecutives of /0!1 bank motivated the valued

customers by counselin and persuasion in liht with the spirit of !slam especially for the

non21uslim customers. !) of /0!1 Bank division has done the e"cellent ob of convertin

and fittin the conventional business processes into the processes based on Shariah. !t has

been made possible by followin a systematic procedure of miration under the leadership

of honorable 1anain 7irector.

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&. (i) O+erall erfor%ance of E)$M Bank(Amount of crore)

3l. No. Particular& 299 2994 2996 2997 2919

01. Aut)ori-ed 3a*ital 100.00 100.00 #'0 #'0 #'0

02. !aid&u* 3a*ital %2.78 87.0 171.#8 21$.22 2%7.77

0#. eserve und #'.7# '7.00 81.0 11#.$% 1'#.2'

0$. otal Assets 2$#'.'8 ##71.%7 $17.#' '1'0.#0 %8$$.%'

0'. otal iailities 22'.'8 #180.$# #8%8.1 $7$%.0' %#$'.7#

0%. 9e*osits 107.82 28#1.2 #'0#.20 $1'$.%% '7'8.70

07. nvestmentB/eneralC 1##.2$ 2%0$.%# #2%$.1# $01.'2 '#%#.77

08. nvestmentB@)ares + (ondsC 1'$.#0 1%#.#0 22#.## 2$'.77 28.$0

0. oreign Exc)ange (usiness $#1.2' 72$.00 %17.1' 1170.01 1'%$#.$%

aC m*ort (usiness 2%78.10 $1$#.20 $'.%7 %1#.$ 78'$.0'

C Ex*ort (usiness 22$1.8$ #128.'0 $%2#.$% ''7.0$ 7%$%.'%

cC emittance 11.#1 22.#0 #$.#8 71.0# 1$2.8'

10. 6*erating ncome 2%#.% #$#.#$ $#%.7% %$0.80 8#'.%8

11. 6*erating Ex*enditure 180.11 22'.7% #'8.8 $$.8 '8#.8$

12. =et *ro"it a"ter *rovision + tax #8.18 ''.'# %'.0# #.08 10.%%

1#. nvestment as a D o" total 9e*osit 101.##D 1.7D #.18D %.7'D #.1$D

1$. =o. o" oreign 3orres*ondent (anks 10 222 2$% 2'% 278

1'. =umer o" Em*loyees 7%8 #$ 1020 770$ 1#12

1%. =umer o" @)are)olders 17%17 1''$2 18771 2#28$ 2$#87

17. =umer o" (ranc)es 2$ 28 #0 #' $2

18. eturn on Assets B6EC (e"ore tax #.$$D #.$D #.$D $.#D $.$'D

Table 90: O+erall erfor%ance of E)$M Bank.

2$


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&. (j) oard of Directors of *+I# a! LiitedBoard of directors consist of nineteen directors, Chairmen advisor and 1anain director,

Chair%an

1r. 1d. 9a*rul !slam 1a*umder Directors

1r. 1ohammad (bdullah

1rs. 9asima (kther

1r. 1d. (.>.1. 9urul 'a*al Bulbul

1r. 1d. Mubayer >abir

1rs. 9asreen !slam

1r. 1d. ?abibullah

1r. 1d. (bdul 1annan (lha 1d. 9urul (min

1r. 1d. (bdullah (l 2Mahir Shapan

1r. 1ohammed ShahidullahBay 4easin & !nvestment 4td.3epresented by 1r. 1ahbur 3ashidD 1r. 1uhammad Sekandar >han!ndependent 7irectorD

Co%#an( -ecretar(

1d. Golam 1ahbub. Managing Director

1r. >a*i 1asihur 3ahman

&. () Shariah Cou!ci$ of *+I# a! LiitedChair%an

+rofessor 1aulana 1ohammad Salah 8ddin

Me%ber1aulana 1ohammad Sade#ul !slam+rofessor ?.1. Shahidul !slam Barakaty1r. (.S.1. 'akhrul (hsan?afi* 1aulana 1ufit 1ohammad >hairullah?afi* :uari 1aulana 1ufti 1ohammad 9uruddin1r. 1d. 9a*rul !slam 1a*umder1r. (.>.1. 9urul 'a*al Bulbul1r. 1d. (bdul 1annan

2'


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1r. Mubayer >abir1r. (bdullah (l NMahir Shapan1r. >a*i 1asihur 3ahman

2%


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&. (l) *ierarch( of osition -tructure ofE)I* Bank

Chair%an Ad+isor Board of Director

Managing Director

De#ut( Managing Director

-enior Executi+e ice resident

-enior ice resident

ice resident

-enior Assistant ice resident

Assistant ice resident

-enior rinci#al Officer

rinci#al Officer

Executi+e Officer

unior Officer

Assistant Officer

igure 90:*ierarch( of osition -tructure of E)I*Bank.

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&. () Or"a!is of 'ead office

igure 9:Or"a!is of 'ead officeof E)I*Bank

3redit

9ivision

nternational

(anking

9ivision

aw +

ecovery

9ivision

Head Office

Estalis)ment

and (usiness

division

m*ort

3redit9ivision

/eneral

3redit9ivision

Ex*ort

credit9ivision

28

inancial

Administration

9ivision

/eneral@ervice

division


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&. (!) ra!ch !et5or of *+I# a! ,i&t of brance& in a!a divi&ion

3l +ranc Na#e

@ 1otiheel Branch

@A +anthapath Branch

@= Ga*ipur Chowrasta Branch

@F !mamon Branch

@ Gulshan Branch

@ 9awabpur Branch

@H 9arayanon Branch

@I Shimrail Branch@< 3auk (venue Branch

@ 9ew /skaton Branch

8ttara Branch

A /lephant 3oad Branch

= 1awna Chowrasta Branch

F 1irpur Branch

1alibah Branch

(shulia Branch

H (shuan BranchI Sat1asid 3oad Branch

< Bashundhara 3oad Branch

A@ Savar Ba*ar Branch

A >arwan Ba*ar Branch

AA Corporate Branch GulshanD

,i&t of brance& in >ulna divi&ion:

3, +ranc Na#eA= Jessore BranchAF >ushtia BranchA >hulna Branch

,i&t of brance& in 3(let divi&ion:

2


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3, +ranc Na#e

2% @yl)et (ranc)

27 enc)ugon4 (ranc)

28 Moulvi (a-ar (ranc)

2 /o*algon4 (ranc)

,i&t of brance& in Cittagong divi&ion:

3, +ranc Na#e

#0 Agraad(ranc)

#1 )atungon4 (ranc)

#2


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&. (p) 4isio! a!d issio! of *+I# a! o e t)e "inest ank in t)e anking arena o" (anglades) under t)e @)aria)

guidelines.

o maintain 3or*orate and usiness et)ics.

o ecome a trusted re*ository o" customers money and t)eir "inancial advisor.

o make our stock su*erior and rewarding to t)e customers>s)are )olders.

o dis*lay team s*irit and *ro"essionalism.

o )ave a @ound 3a*ital (ase.

o *rovide )ig) ;uality "inancial services in ex*ort and im*ort trade.

o *rovide excellent ;uality 3ustomer service.

&. (7) Spo!sors)he sponsors of /0!1 Bank 4imited are hihly successful leadin entrepreneurs ofthe country havin stakes in different sements of the national economy. )hey areeminent industrialists and businessmen havin wide business reputation both athome and abroad.

&. (r) #a!a"ee!t of *+I# a!'or any financial and non financial orani*ation 1anaement is the most valuable andimportant resources of any kind of orani*ation. (nd a well2orani*e manaement providesthe orani*ation to reach its ultimate oal. 1anaement means plannin, orani*in,staffin, directin and controllin of all financial and non financial resources of anorani*ation. 7ifferent aspects of manaement practice in /0!1 Bank are discussed below.

lanning2

/0!1 Bank has done its plannin within the purview of the corporate plan. )he overallplannin approach of /0!1 Bank is )op2down. /ach branch can plan accordin to theoal imposed by the corporate level. !t doesn%t plan independently. (nd, /0!1 Bank has

a plannin division. )his department is mainly responsible for the overall plannin. Organizing2

/0!1 Bank is orani*ed as per the e"istin business locations. !t has twenty eihtbranches, each of which is a separate entity. /ach unit is responsible for its ownperformance and a senior 6ice +resident S6+D followed by 1anaers each. ?e is directlyresponsible for performance of their unit. 5ithin each branch it is orani*ed functionally .

-taffing2

#1


32/120

)he recruitment of /0!1 Bank is done in two ways. -ne as a probationary officer for themanaement proram and it has probation period of one year. (nother one is non2manaement level as )rainee -fficer +robationary officer is recruited in officer cateoryand their career path is headed towards different manaerial obs.

Directing and controlling2

)he manaement approach in /0!1 Bank is top2down or authoritative. !nformation ustseeks throuh lower manaement layer. 5orks are desined in such a way that can notleave without clearin the tasks as he is assined for a day. Settin 1anaement in alloffice is done in way that the superior can monitor the subordinate can all time. Budetin,rewardin, punishin etc. are also practiced as control mechanism.

*u%an resource ractices in E)$M Bank2

/mployees are the core resources of any orani*ation. 5ithout them, one cannot run theirorani*ation. (nd, human resource is concerned with the rowth and development ofpeople toward hiher level of competency, creativity and fulfillment. !t help employees

become better more responsible person and then it tries to create a climate in which theycontribute to the limits of their improved abilities. !t assumes that e"panded capabilities andopportunities for people will lead directly to improvements in operatin effectiveness./ssentially, the human resource approach means that people achieve better result.

"ecruit%ent2

)he set2vice rule of /0!1 Bank states the recruitment policy of the bank. !n eneral theboard of directors determines the recruitment policy of bank from time to time. )he minimumentry level #ualification for any official position other than supportive manaement is aBachelors deree. ?owever, informally the manaement prefers a minimum master%sderee for the appointed of probationary officers in the /"ecutive officer position. )he

recruitment for entry level positions beins with a formal written test which is conducted andsupervised by the !nstitute of Business (dministration, 8niversity of 7haka. (fter successfulcompletion of the written test, a personal interview is conducted for the successfulcandidates by a panel of e"perts comprisin of renowned and prominent bankers of thecountry.

&.(s) Cor$orate 3logan

B,ocal +an! Global Networ!

#2


33/120

8

##


34/120

8. (a) roducti+it( Anal(sis

roducti+it(2

+roductivity is the name of efficiency. !t is an independent variable. !t has impact onprofitability, thouh an increase in profitability doesn%t imply that increase in productivity.+rice increases or low cost has no impact on productivity.+roductivity only relates to the value of input or output.!f input Ooutput, there is no efficiency in productivity.!f input P output, there is inefficiency in productivity.!f input Q output, there is efficiency in productivity.

Measure%ent of #roducti+it(2

+roductivity O)otal -utput )otal !nputSome productivity ratios are calculated a follows2'iures in millionD

:. De#osit #er e%#lo(ee F )otal 7eposit 9o.of employees

,he ratios are sho!n in the follo!ing table2

4556 4557 4558 4559 45:5

146 :8= :9; :5< ::9

,able 562 De#osit #er e%#lo(ee.

Anal(sis of the ratio2

'rom the above ratios it is clear that, the deposit per employee is increasin steadilyin all the five years. !t is #uite satisfactory.

4. O#erating #rofit #er e%#lo(eeF)otal -peratin profit 9o. of employees


4556 4557 4558 4559 45:5

4< ;4 ;8 =6


35/120

'rom the above ratios it is clear that, the operatin profit per employee is increasedin the year A@@< and then increased in the year A@@. ?owever it is #uitesatisfactory.

#'


36/120

;. Ad+ances #er E%#lo(eeF)otal (dvance 9o. of employees


4556 4557 4558 4559 45:5

484 4


37/120

8.(b) rofitabilit( Anal(sisrofitabilit(2+rofitability is the operatin result of an orani*ation. !t is a dependent variable. !t may

depend on the productivity of the concern. +rofitability may increase due to increase in theprice, low cost or both at the same time.

Some profitability ratios are calculated as follows2

"eturn on Asset "OA F 9et profit after ta" R )otal (sset,he ratios are sho!n in the follo!ing table2A@@ A@@H A@@I A@@< A@@.HHK .


38/120

#8


39/120

9.(a) 2orei"! *cha!"e

'orein /"chane means the rate of e"chane of which one currency is e"chaned aainst

another. !t is the means & methods by which rihts to wealth e" pressed in terms ofcurrency of one country are converted into rihts to wealth in terms of the currency ofanother country.

9. (b) ,uthori-ed Dea$ers (,D) #o!e% Cha!"ers

(s per section A of forein e"chane 3eulation (ct


40/120

9. (c) Iport Trade$%#ort2 5hen any man, business orani*ation or Government buy oods and brin to

his own country from any forein country it called import.$%#orter2 !mporter is a person, who !mport oods under /"porter and inventors

3eistrationD can order


41/120

calculated from the date of acceptance or neotiation as per credit terms. (due date diary to be maintained for 1aturity date.

9. (d) Shippi!" Docue!ts

Co%%ercial $n+oice2

( Commercial invoice contains an authoritative description of the merchandise shippedincludin full details on #uality rades, price per unit and total value. !t also contains thenames and addresses of the e"porter and importer the number of packaes any insurancechane any fees collectible from the importer the name of the name of the vessel the portsof departure and destination and any re#uired e"port or import permit numbers.

Consular $n+oice2/"ports too many countries re#uire a special consular invoice. )his invoice, which varies inits information re#uirements from nation to nation, is presented to the local consul ine"chane for a visa. )he form must be filled out very carefully for even trivial inaccuraciescan lead to substantial fines and delays in customs clearance. )he consular invoice doesnot convey any title to the oods bein shipped and is not neotiable.

$nsurance2

(ll caroes oin abroad are insured most of the insurance contracts used today are underan open or floatin policy. )his policy automatically covers all shipments made by thee"porter there by eliminatin the necessity of arranin individual insurance for eachshipment. )o evidence insurance for a shipment under and open policy the e"porter makesout an insurance certificate on forms supplied by the insurance company. )his certificatecontains information on the oods shipped. (ll entries must conform e"actly to theinformation on the BL4 on the commercial invoice and where re#uired on the consularinvoice.

Bill of Lading B/L2

-f the shippin documents the bill of ladin BL4D is the most important. !t serves three mainand separate functions2. !t is a contract between the carrier and shopper e"porter and importerD in which the

former arees to carry the oods from port of shipment to port of destination.A. !t is the shipper%s receipt for the oods.=. )he neotiable BL4 its, most common form is a document that establishes control over

the oods.

$1


42/120

$2


43/120

Bill of Exchange2

Bill of /"chane is an unconditional order sined by the maker to pay a certain amount ofmoney to a certain person at the specific period of time. )he bill is usually drawn induplicate. )he oriinal copy is known as the first of /"chane & the duplicate is known asthe second of e"chane. Bill of /"chane is commonly called 7raft or Bill.

+articulars of a Bill of /"chane

7rawer 7rawee +ayee +articular amount !ssuin date Certain payment date

Certificate of Origin2

Certificate of -riin indicatin the country in which the oods were produced ormanufactured and may be re#uired by the importer to meet the trade control re#uirement orcustom duty of his country. )he chamber of commerce of the e"portin country enerallyissues this.

Cash Credit CC2

Cash Credit as a form of advance is a separate account by itself and is maintained in aseparate leder. !t is operated upon like an overdraft account .)he borrower may operatethe account within stipulated limit on & when re#uited. )he drawins are subect to drawinpower.

$nland Bills urchased2

+urchasin of inland bill of e"chane arisin out of commercial transaction is called inlandbill purchased. 5hen the drawee of a bill encloses the documents of title to oods Bill of4adin, 3ailway receipt, Steamer receiptD with the bill to be delivered to the drawee of the

bill on payment or aainst acceptance of bill as the case may be the bill is called adocumentary bill .!n the absence of such documents. !t is termed as a clean bill. !n case ofpurchase and discountin of bills the banker credit the customer%s with the amount of thebill after deductin his chares or discount. 7emand bills have no maturity and repayableon demand. Sometimes banks are to purchase che#ues drawn by Government, semi2overnment, institutions, local authorities or any first parties for e"tendin accommodationto the parties re#uirin funds.

$#


44/120

9. (e) Letter of Credit (L:C)

4etter of Credit is a bank uarantee on behalf of importer. )he letter of credit 4LCD offersthe e"porter the reatest deree of safety. !f the importer is not well known to the e"porteron if e"chane restrictions e"ist or are possible in the importer%s country the e"porter sellinon credit may wish to have the !mporter%s promise of payment backed by a forein ordomestic bank. -n the other hand the importer may not wish to pay the e"porter until it isreasonably certain that the merchandise has been shipped in oods condition. ( 4etter ofcredit satisfies both of these conditions. !n essence the letter of credit is a letter addressedto the seller written and sined by bank actin on behalf of the buyer.

9. (f) a!ers ,ccepta!ce

Bankers acceptance have played an important role in financin international trade for manycountries. ( Bankers (cceptance is a time draft drawn on a bank by acceptin the draftmakers an unconditional promise to pay the holder of the draft, a stated amount on aspecified day.

L/C A%end%ent2

4LC to be amended before its e"piry date only, dispatch or transmission of the amendmentis not sufficient to become the amendment effective. Beneficiary%s acceptance of theamendment becomes effective upon his e"press communication acceptin such9ominated Bank. Shipment date & e"piry date of the 4LCs may be amended if relevant4C(, permit remains valid up to that period. 4LC amount may be decreased with consent ofthe beneficiary. 9umberin of amendments may be dome but it is not mandatory.

M$B Murabaha $%#ort Bill / AD a(%ent Against Docu%ents2

1!B is associated with import and import financin. )he importers are to open letter ofcredit throuh any bank for importin oods. 1ost of the time the banks are to e"tend creditto the importers if not prohibited by Banladesh Bank for buyin re#uired forein e"chane.

$$


45/120

)his loan on receipt of shippin documents from the neotiatin bank is transferred andloded to 1!B L +(7.

M$ Murabaha ost $%#ort / L$M Loan Against $%orted Merchandise2

!n many cases a bank has to clear the oods imported under 4LC at the re#uest of the borrowerwhen the imported does not come forward to retire the documents in spite of repeatedreminders bank has on forced circumstances to clear the imported consinment on arrival ofthe same to avoid heavy demurrae at the port which adds to the burden of commitment.

,rust "ecei#ts2)his is an arranement under which credit is allowed aainst )rust 3eceipts and imported ore"portable oods remain in the custody or importer or e"porter but he is to e"ecute a stamped)rust 3eceipt (76' N HD in favor of the bank where a declaration is made that oodsimported or bouht with the banks financial assistance are held by him in trust for the bank.

Lodg%ent2!f import documents found in order, it to be made entry in the bill reister and necessaryvoucher to be passed, puttin bill number on the documents, these processes is called4odment of the bill. )he word lodment means temporary stay. Since the documents stay atthis stae for a temporary period i,e up to retirement of the documents, the process is called4odment. Bank must lode the documents immediate after receipt of the same, not e"ceedinH bankin days.+rocedures for 4odment. Bill reister Bank will entry the documents in the bill reister. Bill reister must include

date 4odment, Bill 9o, Bill of /"chane 9o, (mount 9ame of the 9eotiation Bank, BL4no & date merchandise retirement date & other particulars.

A. (pplication of rate 'orein currency would be converted at B.C sellin rate rulin on the

date of 4odment.=. /"chane Control 'orm !1+ & )1 form must be filled in and sined by the importer at

the time of 4odment.F. /ndorsement of 4C(' 4C( form must be endorsed showin utili*ation so shipment.. 9othin on the 'ile 8tili*ed N amount showin bill no to me noted on the printed format

of 4LC file.

9. (") *!dorsee!t of Iport Docue!tfor Custo C$eara!ce;

. BL4 to be endorsed favorin !mporter L +ort N branch L C & ' aent.A. !nvoice value to be certified by the Bank.=. 7ocument to be handed over to the !mporter L C&' aent.F. 4C( custom copyD to be endorsed favorin !mporter L C& ' aent.

$'


46/120

. Bill of e"chane to be marked received payment.. !n case of useness bill documents to be delivered aainst acceptance of the

importer.

9. (h) *port Trade

port: /"port means when any orani*ation or any country sales oods law fully forearnin profit to any other country of the world.

porter: /"porter is a person who is reistered with the CC! &/ Chief Controller of!mport & /"portD under the reistration order !mporter & /"porter


47/120

+ayment must be unconditional & specific. 3e#uired documents to be easily prepared. 4LC must to be freely neotiable. +lace of /"piry of the credit must be in Banladesh.

General 3ules for /"port some essential rules for e"port are as follows

5ithout reistered by CC! & / nobody can e"port any oods. (ll e"port must be declared on the F copies /"p form. /"port must be aainst

aD /"port 4LC

bD 'irm Contract

cD (dvance payment

)ransport documents related to land route or sea and any other documents of title tocaro should be drawn only to the order of an (uthori*ed 7ealer.

/0+ must be submitted to bank. Bank will submit the duplicate copy to theBanladesh Bank within Fthdays.

+ayment for oods e"ported should be received throuh an authori*ed dealer in freelyconvertible currency.

-verdue e"port bills statement to Banladesh Bank should be submitted by the thofthe month.

rocure%ent or Manufacture of Goods for -hi#%ent2

Goods may purchase from local market. -pen Back2to2Back 4LC 1anufacture in own factory or throuh other manufacturer.

$ns#ection of Goods2(fter procurement of Goods now aent or authorities as perterms of contract as follows

/"port +romotion Bureau. Custom (uthorities Chamber of commerce. Buyer%s (ent or Buyer%s authori*ed person. !nternationally reputed inspection (encies like S.G.S on others

Banks !ill certif( E) for% onl( after confir%ing the follo!ing2

(rranements have been made for reali*ed of e"port proceeds.

$7


48/120

Bonafides of the of importer consinees abroad.

(uthori*ed dealer has made arranements for receipt.

)he e"porter has sined the /0+.

Ex#ort Docu%ents Checking2Bank must e"amine all documents stipulated in the creditwith reasonable care to ascertain whether or not they appear on their face to be incompliance with the term and condition of the credit.

Clearin (ent2 /"porter L Bank then enae clearin & forwardin C&'D for followinwork.

(rrane shippin space as per instruction of the /"porter. +ay all relevant dues to custom and shippin (ent on behalf of /"porter. Goods hand over to shippin (ent.

Ex#ort cash credit2 /"port cash credits are e"tended to an e"porter to facilitate thee"tended to an e"porter to facilitate the e"port of oods & commodities for which there ise"port letter of credit or contract on hand. !t is a pre N shipment & short N term credit to beli#uidated out of the proceeds of e"port documents, which include neotiation or purchaseof e"port documents.

oreign Bill urchased2+urchased of forein bills of e"chane arisin out of commercialtransactions is called forein bill purchased details have been discussedin!94(97 B!44S+83C?(S/7.

oreign "e%ittance2

,here is ,!o ,(#e of "e%ittance2

:. Out!ard "e%ittance4. $n!ard "e%ittance

Out!ard "e%ittance2-n 1arch AF,


49/120

)ravel. ?ealth & 1edical. 'orein 9ationals. 3emittance for ?a.

b Official and Business ,ra+el2 )ravel :uota for !mporter /"porters 3etention :uota.

$n!ard "e%ittance2 )he term inward remittances include not purchase of 'oreinCurrency by ).), 1.), and 7raft etc. but also purchase of bills purchase of ).C.

8tmost care should be taken while purchasin currency. 9otes ).C, 7.7 & similarinstrument for protectin the Bank from probable less as well as safety of the Bank officialsconcerned.

urchase of oreign Currenc( 'otes ,.C & DD2

'ollowin General observations are re#uired to purchase the above

Currency notes to be checked very carefully so as to avoid risk of purchasin counterfeitnotes.

5hile purchasin ).C sinature of the holder to be obtained on the ).C and should beverified with the sinature of the holder iven at the time of issuance of ).C passportof the seller as well as purchase contract of ).C to be asked for to ensureenuineness.

7raft should not be purchased unless the holder is a reular customer of the bank.!ndemnity bond to be obtained for recoverin the amount paid to the holder in caseof dishonors.

+rivate che#ues should not be purchased without prior approval of ?-.

,ra+elers Cheues ,C2)ravelers che#ues )CD is an instrument for a specific amount ofa widely accepted forein currencies, issued in favor of travelers L visitors to carry foreine"chane for meetin their e"penses in abroad. )raveler%s che#ues may be in differentcurrencies, such as 8S 7ollar, +ound Starlin, Japanese Een, Saudi 3iyal, Canadian7ollar, 'rench 'rances, German 1arks, Swiss 'rances, etc.

re#arator( -te#s for O#ening L / C2

Before openin the 4 L C Bank will takes the followin steps

$


50/120

. )he person who open the 4LC be must have an (ccounts ?older in the bank.A. Bank confirms that, the client is a reistered importer and !3C of the importer has

been renewed for the current year.=. 3estricted item is not imported and oods not to be imported from restricted country

like !srail.

F. )he importer must have business establishment.. )he importer has sufficient security or marin.. !f the oods to be imported under C!' Cost insurance & freihtD then permission

from ministry of commerce to be obtained.

Before o#ening of the L / C the i%#orter sub%it the follo!ing#a#ers docu%ents2

. +erforma !nvoice.A. !nsurance cover note with money receipt.=. )rade license.

F. !mport 3eistration Certificate.. !ncome )a" 7eclaration with )!9D.. 1embership of (rticles incase of 4td.co.D.H. 3eistered deed incase of partnership firmD.I. 3esolution.


51/120

. Chare 7ocument.H. Guarantee form.

Checking of Ex#ort L/C2A letter of credit shall take reasonable care to check a##arent authenticit( of thecredit.Main #oint to be checked2 'ollowin terms are to be carefully checked in e"port 4LC.

a. )hat the /"portable commodity is not banned by the Government /"port policy.b. )hat the terms & condition stipulated in the 4LC are not contrary to the e"chane

control reulation of the country.c. )hat the payment terms stipulated in the 4LC is clear and acceptable.d. )hat the documents re#uired which mentioned in the credit are easily available.e. )hat the reimbursement is not allowed throuh a banded country.f. )hat all the 4LC s is subect to 8C+7CD !CC publication no2@@


52/120

A. 4LC must indicate the place and date of issue.=. 4LC must have date and place of e"piry.F. )here should be a last shipment date.. !ssue Bank will allow a period within which e"porter must pretest the e"port document to

the neotiatin bank.

. 9ame of the applicant beneficiary and advisin bank with address also to the indicatedin the 4LC.H. /very 4LC must show the amount.I. !ssuin bank also clearly indicates in the 4LC it may part shipment & transshipment is

allowed or not.


53/120

A, :


54/120

'$


55/120

''


56/120


57/120

iiSavins deposit will be accepted on 1udaraba principle & such deposit will bear @.A of profit.$sla%ic Banking ,er%s2

'or the convenient of the reader who are not familiar with the !slamic Bankin )erm. )hefollowin are some terms of !slamic Bankin for mobili*ation of deposits & schemes arebecomin popular day by day.

AlJadiah Current Account2

)he characteristics of this account are almost similar to current account of conventional banks.)he owner of the fund doesn%t enoy any profit nor bear any loss. But the bank obtains thepermission from the depositors so that the bank has the option to use the fund when it isnecessary.

Mudaraba -a+ing Account2

1echanism is almost similar to the savins account of the conventional banks. )he basicdifference in this case is that the bank & the owner of the fund will share the profit from theoperatin income while the loss from the operatin income will be borne by the owner of thefund unless the loss is incurred due to the nelience or convenience of the bank. Generally,current account is opened for businessmen & traders for easy transaction. But a person canopen C7 account for special purpose investment also.

Mudaraba3ort Ter# e$o&it =*3T?:

!n short term deposit, the deposit should be kept for at least seven days to et interest. )heinterest offered for S)7 is less than that of savin deposit. !n /0!1 Bank various bicompanies, orani*ations, ovt. departments keep money in S)7 (ccounts. /0!1 Bank offers.K interest on short2term deposit account. +rofit will be divided for staff daily basis. 're#uentwithdrawal is discouraed & re#uires prior notice. )he account holder must ive notice sevendays before the withdrawal that is why short term deposit is called seven days notice current

account.8nder the current account, savin account & short term deposit account, !ndividualLointaccount, partnership account, proprietorship account, limited company, clubLsociety accountcan be open.

"euire%ents for the different t(#e of account o#ening are discussedbelo!2

$ndi+idual/Koint Account -B? CD? -,D account can be o#ened2

!ntroduce of the account. )wo photoraphs of the sinatories duly adusted by the introducer. -ne copy photoraph of the sinatories of nominee duly attested by the account holder. !dentity copy of passport, national id card issued by ward commissioner or upa*ila

chairman, drivin license, electric bill, telephone bill, as bill etc. Joint declaration form for oint account onlyD GB2I. /mployee%s certificate if providedD. (e limit.

'7


58/120

)a" !dentification 9umber )!9D. -peratin mode.

artnershi# Account CD/-,D account can be o#ened2

(ccount openin form.

)wo photoraphs of the sinatories duly adusted by the introducer. +artnership letter duly sin by all partner. GB2@I sin should be similar as stated inpartner deedT.

+artnership deed duly reistered. +hotocopy of )!9 certificate. 3esolution of reardin openin account in concern letter head pad +hotocopy of 6() certificate if producerD. +hotocopy of passport, national !7, voter !7 card of each partner. 3eistration if anyT. 3ubber stamp. +hotocopy of updated trade license.

ro#rietorshi# Account onl( CD/-,D account can be o#ened2

(ccount openin form. )wo photoraphs of the sinatories duly adusted by the introducer. 6alidated copy of trade license. 3ubber stamp. )!9 certificate photocopy if anyT. +hotocopy of passportLnational !7. (ttestation of photoraph of nominee by account holder. +hotocopy of 6() certificate. +ermission letter from 7CL1aistrate in case of newspaperT. Sole proprietorship declaration form GB2.

Li%ited Account2

(ccount openin form. )wo photoraphs of the sinatories duly adusted by the introducer. 6alid copy of trade license. Board resolution of openin account duly certificate by the chairman, manain

director. Certificate of !ncorporation. Certified oin stockT true copy of the memorandum and (rticle of association of the

company. 7uly attested by the chairman or manain director. 4ist of director alon with desination and specimen sinature. (lso, need the list of

the name of operatin body. 4atest certified copy of form2 0 to be certified by the reister of oin stock

companies, in case of directorship chaneT.

'8


59/120

3ubber stamp sealT. Certificate of reistration in case of insurance companyT.

Club/societies Account2

(ccount openin form. )wo photoraphs of the sinatories duly adusted by the introducer. Board resolution for openin account duly certificate by presidentLsecretaryT. 4ist of e"itin manain committee. 'or co2operative reistration mustT. 3ubber stamp. By laws. +ermission letter from bureau of 9G- in case of 9G- accountT. Government account.

$ssuing of a chake book2

(t first the customer will fill up the che#ue re#uisition form. )he leaves of the che#ue book under issue shall be counted to ensure that all the

leaves & the bank re#uisition slip are intact & the name & the account number shallbe written on the cover pae of che#ue book.

)he name & account number of the customer shall be entered in the che#ue bookreister aainst the particular che#ue book series.

)hen the reister che#ue book & the re#uisition slip are sined by the officer inchare of the deposit department.

)hen the che#ue book is handed over to the clientLcustomer after takinacknowledement on the re#uisition slip & the reister book.

( cover file containin the re#uisition slip shall be effectively as voucher. !f the leder keeper notices any defect, he will make a remark to that effect on the

re#uisition slip & forward it to the cancellation officer to decide whether a newche#ue book should be issued or not.

Mudaraba ,er% De#osit "ecei#t2

1udaraba term deposit receipt is a different type of account. 4aw permitted persons canopen this account. 1)7 is also known as time liabilities or fi"ed deposit receipt. )hesedeposit, which are made with the bank for a fi"ed period specified in advance. 9ormally themoney on a term deposit is not payable before the maturity date of a fi"ed period. )he bankneed not maintain cash reserves aainst these deposits & therefore. )he bank offers hih

profit on such deposits.n EM (ank, term de*osit account is o*ened in given "orms&

Ter# Provi&ional rate of $rofit 1 #ont 19D

' #ont 1'D

#ont 1'D

12 #ont 1'D

'


60/120

2- #ont 1'D

' #ont 1'D

,able :


61/120

)he leal position of a banker reardin a 1)7 is that of a debtor which bound torepay the money after the maturity of the term deposit.

Che#ue books are not issued for 1udaraba )erm 7eposit account.-hort sche%e --2

/0!1 Bank offer different types of product under the short scheme. )his are2

1onthly Savin Scheme1SSD 1onthly !ncome Scheme1!SD 1ultiplus Super Savin Scheme1+SSD Super Savin SchemeSSSD 1udaraba ?a 7eposit Scheme1?7SD /ducation Savin Scheme/SSD

Describe briefl( of each #roducts2

U Mudaraba %onthl( -a+ing -che%e Gro!er Mone(2

ObKecti+e of the sche%e2

o ( monthly savin scheme.o Secure your future with ease.o ( small savins of today will provide you comfort tomorrow.

-a+ings eriod & Monthl( $nstall%ent "ate2

o )he savins period is for , I, @, or A years.o 1onthly !nstallment is )>. @@L2, @@@L2, A@@@L2, @@@L2.o 9ot less then K of investment income shall be distributed amon the 1udaraba

7epositors as per weiht ae. )he deposit will bear weiht ae ., .H, .I,.< respectively.

o Bank reserve the riht to chane the weiht ae of deposit & percentae ofdistribution of !nvestment !ncome.

Monthl( $nstall%ent De#osit2

o )he savins amount is to be deposited within the @ thof every month. !ncase ofholydays the deposit amount is to be made on the followin day.

o )he deposits may also be made in advance.o )he depositor can have a separate amount in the bank from which a standin

instruction can be iven to transfer the monthly deposit to the scheme account.

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o !f the depositor fails to make the monthly installment in time, then K on overdueinstallment amount will be chared. )he chared amount to be added with thefollowins monthsD installment & the lowest chare will be )>. @L2.

%2


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ithdra!al2

o Generally, withdrawal is not advised before a year term. But if it is withdrawnbefore the above term, profit will be paid at savins rate. ?owever, no profit will bepaid if the deposit is withdrawn within year of openin account.

o !n case the depositor wishes to withdraw between the , I, @, A years period thenfull profit will be paid for a completed term & savins rate will be applicable for thefractional period.

inancial obligation ad+antage2

o (fter = years of savins in this scheme the depositor if adultD is eliible for afinancial obliation up to


64/120

"ules2

( form has to be filled at the time of openin the account. (ttested photoraph areadvised.

)he depositor can select any of the installment amounts which cannot be

subse#uently chaned. !n case of minors, the uardian may open & supervise the account in his favor. ( sinle person can open more than one account for savin under several

installment amounts. )he accumulated deposit with profit will be returned within one month of completion

of a term. )he depositor should notify the bank immediately on any chane of address. )he overnment )(0 will be deducted from the profit accumulated in this scheme. !f necessary, at the re#uest of the depositor, the scheme can be transferred to

another branch.

!ncome )(0 on profit paid shall be deducted of the time of payment.

De#osit "ate

De#osit 'a%e ro+isional rofit "ate

Mudaraba -a+ings De#osit 7.55@

Mudaraba -hort ,er% De#osit 6.55@

Mudaraba ,er% De#osit2

< (rs. :5.55@

8 (rs. :5.:


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)he bank will provide the customer a deposit receipt after openin the account.)his receipt is non transferable.

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*ighlights of the sche%e2

1inimum deposit )>., @@,@@@L2. )he scheme is for a = year period.

De#osit a%ount $nco%e ,:? 55? 555/J :555/J

)he income is estimated which may be more or less at the year end & accordinlythe same shall be adusted. )he deposit will bear . weiht aes.

9ot less than K of investment !ncome shall be distributed amon the 1udaraba7eposit holders as per weiht ae.

Bank reserves the riht to chane the weiht ae of deposit & percentae ofdistribution of !nvestment !ncome.

$n+est%ent facilit(2

( depositor can enoy investment facility up to I@K of the deposited amount under thisscheme complyin investment norm of the bank. !n this case, profit will be chared aainstthe investment facility as bank%s norms. 7urin the tenure of the investment, the monthlyincome will be credited to the investment account until li#uidation of the invested amountinclusive of profit.

Disburse%ent of %onthl( inco%e2

1onthly income will be credited after one month i e, on the due date of the ne"t month to

the depositor%s SB account only.

re%ature encash%ent of the account2

!f the deposit is withdrawn before = years term, then savin rate plus .HK of profit will beapplicable and paid to the depositor. ?owever, no profit will be paid if the deposit iswithdrawn within year of openin the account & monthly income paid to the client will beadusted from the principal amount.

Additional ter%s & condition2

(pplication must openLhave an (l25adiah Current 7eposit or 1udaraba Savins 7eposit(ccount with the branch in which monthly income will be credited automatically.

*udaraba *ulti$lu& 3aving& 3ce#e:


%%


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)o ather public%s idle money in e"chane of hih return within the shortest possible time.,er%s and conditions of the -che%e2

(ny individual, company, educational institution, overnment orani*ation, 9G-,trust, society etc. may invest their savins under this scheme.

)he deposit can be made in multiples of )>. @@@.@@. (ny customer can open more than one account in a branch in hisLher name or in

oint names. ( deposit receipt will be issued at time of openin the account. )he period of deposit is @ years.

*ighlights of the sche%e2

+ayable amount will depend on proection & will be adusted after the declaration ofprofit at the end of the year.

9ot less than K of investment income shall be distributed amon 1udaraba

depositors as per weiht ae. Some e"amples are iven in the table below. (ny amount can be deposited in

multiples of )>. @@@L2.

7eposited (mount (mount payable appro"imately after maturity@@@.@@ , IH


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!n case of issuin duplicate receipt the rules of issuin a duplicate receipt of )erm7eposit will be applicable.

)he nominee may, at his option continue the scheme for the full term.$n+est%ent facilit( against the sche%e2

)he depositor can enoy loan up to I@K of the deposit under this scheme.

Additional ter%s & condition2

Bank reserves the riht to chane the weiht ae of deposit & the portion of distribution ofinvestment income.

Mudaraba -u#er -a+ing -che%e2


Savins help to build up capital & capital is the principal source of business investment in acountry. )hat is why savins is treated as the very foundation of development. )o createmore awareness & motivate people to save, /0!1 Bank super savin scheme.

,er%s & condition of the sche%e2

(ny individual, company, educational institution, overnment orani*ation, 9G-,trust, society etc. may invest their savins under this scheme.

)he deposit can be made in multiples of )>. @@@.@@. (ny customer can open more than one account in a branch in hisLher name or in

oint names. ( deposit receipt will be issued at time of openin the account. )he deposit will appro"imately be double in years.

*ighlights of the sche%e2 Some e"amples are iven in the table below. (ny amount can be deposited in

multiples of )>. @@@L2.

De#osit a(ablea##roxi%atel(at %aturit(


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/0!1 Bank. 'or this he or she has to be applied to the bank. Bank will apply his or herprofit. (fter that bank will provide statement. )hen they will mark rate of profit based ontheir statement. )hen the bank will transfer his or her account throuh the !BC( interbranch credit accountD to another branch where the account holder wants to transfer theiraccount.

Closing of an account2( client can close his or her account anytime by submittin an application to the

branch. )here must be a sinature of the client in the application and the account openinofficer will verify it. )he account then checks the clients account position. )he client thenask to draw a final che#ue for the credit amount in the account e"cludin account closechare )k. @ plus 6() H.@ and other incidental chares. )he closin chare of currentdeposit account )k. A@@D, closin chare of savins account A@@ V 6() =@ )k. A=@D, andthe closin chare of short term deposit account is A@@ V 6() =@)k. A=@D. )o close theaccount the che#ue book is to be returned to the bank. 6ouchers are then issued withdebitin the particular account and creditin incidental chares account.!n case of ointaccount the application for closin the account should be sined by all the oint account

holder, even if the account is operated by either of them. )he last che#ue for withdrawal ofthe available balance in the account should also be sined by all the oint account holder.

)he closin of an account may happen,

!f the customerLclient is desirous to close the account

!f /0!1 bank finds that the account is inoperative for a lon duration

!f the court on /0!1 bank issues arnishee, order.


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o "reparation of closing monthly transaction.

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Cash #a(%ent #rocedures #recaution2

!n order to safe uard the position the payin banker has to observe the followinprecaution before honorin a che#ue.

( che#ue must be looked whether it is an opened or crossed che#ue.

)he payin officer should see whether the che#ue is drawn on hisLher branch ?e must see if the che#ue is post dated or predated. ( letter mind not pay any postdated che#ue

)he officer must carefully see the apparent tenor of the che#ue. !f it is mutilated ormaterially altered then the officer must not honor it.

)he officer must compare the sinature of the che#ue with the sinature onspecimen card

)he officer must verify the reularity of the endorsement )he officer may allow overdue aainst a che#ue if prior arranement is done with the

bank.

7ate +articulars 7ebit )akaD Credit )akaDW W W W W Customer (LC 7r. W W W W W

Cash (LC Cr. W W W W W

unctions of cash de#art%ent2

Cash payment Cash payment is only aainst che#ue. )his is the uni#uefunction of the bankin system which is known as +ayment ondemand.

!t makes payment only aainst its printed valid che#ue.

Cash receipt !t receives deposit from the depositors in form of cash.So, it is the mobili*ation unit of the bankin system.!t collects money only its receipts forms.

Cash #acking2

(fter the bankin hour cash is packed accordin to the denomination. 9otes are countedand packed in bundles and stand with initial.

Allocation of currenc(2

Before start the bankin hour all tellers ive re#uisition of money throuh teller cash proofsheet. )he head teller writes the number of the packed denomination wise in 3eservesheet at the end of the day; all the notes remain are recorded in the sheet.

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"ules for #assing a cheue2

!n order to enable the branches to facilitate their day to day transaction smoothly,efficiently, accurately, the followin schedule power for passin che#ueLinstrumentsinature of vouchers shall come into force with immediate effect

(n authori*ed officer shall pass che#ue for less than )k. @,@@@ sinly after propersupervision in computer print out.

Che#ues for )k. @,@@@ and above but below )k. @,@@@ shall be passed ointly byany two authori*ed officer. (fter proper supervision by any one officer in computerprint out. ?e will also ensure that no fictitiousLlon credit in the account has beenposted on the day by referrin to credit vouchers of the day.

Che#ue for )>. @, @@@ & above shall be passed under the oint sinatures of twoofficers, one of whom must be 1anaer of the branch. !f the che#ue for less than)>.@, @@@ then deposit in chare will cancel the che#ue.

(ll the suspense%s (LC 7ebitD vouchers, credit (LC debit vouchers, /"penditure (LCvouchers must be sined by the incumbent in chare of the branch with any other

authori*ed officer. (s at the close of business of the day all transactions both debit& creditD shall be checked by referrin to computer print out & relativeche#ueLvouchers.

Accounting #rocedure/treat%ent2

7ate +articulars 7ebit )akaD Credit )akaDW W W W W Customer (LC 7r. W W W W W

Cash (LC Cr. W W W W W

( part from the above it will also be ensured that the total amount of debit & credit totalinto Current (LC, Savin (LC, Short )erm 7eposit (LC & )erm 7eposit corresponds with the

total of cash receipt Lpayment, transfer, clearin both inward & outwardD.


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)he main ways used by /0!1 Bank for remittin funds are +ayment -rder +-D 7emand 7raft 77D )eleraph )ransfer ))D

So the basic three types of local remittances are discussed below

,estJke( arrange%ent2

)est key arranement is a secret code maintained by the banks for the authentication fortheir )ele" messaes. !t is a systematic procedure by which a test number is and theperson to whom this number is iven can easily authenticate the same te"t number bymaintainin that same procedure. /0!1 Bank has test key arranement with so manybanks for the authentication of 4C letter of creditD messae and for makin payment.

Co%%ission for O a( Order2

/0!1 Bank chares different amount of commission on the basis of payment order amount.)he bank chares for +ay -rder are iven in the followin chart

,otal a%ount of O Co%%ission A,

8p to )>.@, @@@ A F)>.@, @@2)>., @@, @@@ @ ., @@, @@2 and above A@ I

Table 16: Co%%ission for a( Order.

oints a( Order De%and Draft ,elegra#hic ,ransfer

/"planation

+ay order ives thepayee the riht toclaim payment fromthe !ssuin bank.

7emand draft is an order-f issuin bank on

(nother branch of thesame bank to payspecified sum of moneyto payee on demand.

!ssuin branch re#uestsanother branch to payspecified money to thespecific payee on demandby )eleraphL)elephone

+ayment form+ayment from issuin

Branch only.

+ayment from ordered

branch.

+ayment from ordered

branch.Generally usedto remit fund

5ithin the clearinhouse area of issuinBranch.

-utside the clearin?ouse area of issuinbranch. +ayee can alsobe the purchaser.

(nywhere in the country.

+aymentprocessof the payinbank

+ayment is made)hrouh clearin.

Confirm that the 77 isnot fored one.Confirm with sent advice.Check the )est Code.1ake payment.

Confirm issuin branch.Confirm payee account.Confirm the amount.1ake payment.3eceive advice.

Chare -nly commissionCommission V tele"

chareCommission telephone.

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-ource2 Annual "e#ort 4558Co%%ission for DD De%and Draft2

'irstly bank che#ue the )est Code mentioned on the draft. !f )est Code arees thenbelieve that 77 is not fored & makes payments. 'or further confirmation the issuin banksends an advice about the 77 to the payin branch. 'or 7emand 7raft, commission is

taken in the followin way

articulars Charges

Commission Y @.K on total amount6() Y K on commission

+ostae )>.A,able :92 Co%%ission for De%and Draft.

-ource2 Annual "e#ort 4558

Co%%ission for ,, ,elegra#hic ,ransfer2

)his service only provided for valued customer, who is very reliable & have lon standinrelationship with bank. )eleraphic )ransfer commissions are

articulars Charges

Commission Y @.K or minimum )>. A.6() Y K on commission minimum

)>. A on @,@@@.)elephone chare )>.@

,able 452 Co%%ission for ,elegra#hic ,ransfer.-ource2 Annual "e#ort 4558

oreign "e%ittance2

+eople from outside of country send money to homeland is called forein remittance/0!1 bank conduct forein remittance areement in the three country of the world as perbelow chart

3emittance areement Country 9umber of remittance areement8nited >indom A

!taly 8nited (rab /mirate8(/D

,(#es of foreign re%ittances2

+eople can transfer money in three ways

CE4!9C- '(S) C(S? 5/S)/39 89!-9 S5!') C-7/

7%


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rocedure2

!f any one transfer money throuh any of above three ways then the procedure will besame which are

( person come to the bank with information like pin no., sender name, receiver

name, national id brin to the bank ?e or she must fill up a forein remittance form Bank re#uires a copy of passportLdrivin licenseeLnational !7Letc. & = diit +!9 no.

with the form Bank will check online information of above ways accordin to his or her filled up

form /0!1 bank will collect money throuh !BC( from the head office & ive pay order to

that person.

assing the cheue2

(fter verifyin the above mentioned thins the officer passes it to the computer section formore verification. (fter that it is passed to the cash officer to make payment. By puttinSeal the cash officer make it clear to pay. )he cash officer ives the cash amount to theholder & record in the cash paid reister.

Dishonor of cheue2

!f the che#ue is dishonored, /0!1 Bank sends a memorandum che#ue return memoD tothe client startin the reason in the followin way

!nsufficient 'und

(mount in fiure & ward differs Che#ue out of dateLpost2dated 7rawer%s sinature differs +ayment stopped by drawer Crossed che#ue to be presented throuh a bank +ayee%s endorsement re#uired -ther specific reasons not mentioned above.

Bills -ection2

'or safety & security in financial transaction people use financial instruments like 77, +-,che#ue etc. Commercial bank%s duty is to collect these financial instruments on behalf oftheir customer. )his process that the banks use is known as clearin & collection. )he mainfunction of this section is to collect instruments on behalf of the customer throuhBanladesh Bank Clearin ?ouse, -utside Bank Clearin, !nter Branch Clearin. 8pon thereceipt of the instruments this section e"amines the followin thins

5hether the payin bank within the 7haka city. 5hether the payin bank outside the 7haka city.

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5hether the payin bank is their own branch.$n!ard bills for collection $BC2

5hen the banks collect bills as an aent of the collectin branch, the system is known as

!nward bills for collection !BCD. !n this case the bank will work as an aent of the collection

bank. )he branch receives a forwardin letter & the bill. 9e"t steps are as follows

/ntry in the !BC reister.

(n !BC number is iven on the bill.

/ndorsement iven -ur branch endorsement confirmed.

Give postin to the computer.

)he instrument is sent for clearin.

!f dishonored, the instrument is returned to the collectin branch alon with a return memo.

Out!ard bills for collection OBC2

!f the bill is beyond the clearin rane then it is collected by -BC mechanism. Client

deposit che#ue, drafts etc. for collection, attachin with their deposit sleep. !nstrument

within the rane of clearin are collected throuh local clearin house, but the other which

are outside the clearin rane are collected throuh -BCD mechanism. ( customer of JB4,1ain branch, 7haka is depositin a che#ue, of Sonali Bank Co"%s Ba*ar. 9ow as a

collectin bank JB4 local office will perform the followin task

rocedure2

7epositin the che#ue alon with deposit slip.

Crossin of the che#ue are done indicatin Co"%s ba*ar as collectin bank.

/ndorsement payee%s (LC will be certified on reali*ation is iven.

/ntries are iven in the -utward Clearin 3eister -BCD.

Collectin bank can collect it either by its branch or by the drawer%s bank. )hey will forward

the bill then to that particular branch. -utward bills for collection number will ive on the

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forwardin letter. 9ow followin procedures will take place in case of the followin two

cases2

Bills collected throuh branch or Bills collected throuh another bank of this area .

igure 572 lo! chart of collection #rocedure.

(S? postin is made & ives code number

Sereate from pay2in2slip

Give respective endorsement

Gets total from 9!>(S? A & also et total from pay2in2slip

!f both are same, sort the che#ue accordin to banks

Get the entire schedule from 9!>(S? A

(ffi" schedule to the correspondin bank che#ue


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che#ues, drafts & like instruments from its client for the purpose of collection with a depositslip over the counter creditin their accounts. Clearin of che#ue is done throuh theclearin house in Banladesh Bank. /very day the first hour starts at @.=@ am. & returnshouse at .@@ pm.

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unction in clearing house2

)he clearin house is an assembly of the locally operatin scheduled banks. 'ore"chane of che#ues, drafts and other demand instrument drawn on each other &receive from their respective customers for collection.

)he house meets at the appointed hour on all workin days under the chairmanshipof the central bank. )he clearin house sits twice in a workin day )he numbers submit the flammable che#ues in the respective desks of the bank &

vice versa. Conse#uently, the debit & credit entries are iven (t the end, the debit summation and the credit summation are calculated. )hen the

banks clear the balances throuh the che#ue of Banladesh Bank. )he dishonored che#ues are sorted and returned with return memo.

Essential things for clearing the instru%ents2

Crossin seal /ndorsement seal Clearin seal


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De#reciation2/0!1 bank has some fi"ed assets & depreciation is chares for those assets like furniture &fi"ture @K, e#uipment & machineries A@KD. 7epreciation always holds on purchasevalue of fi"ed asset throuh the straiht line method. )he amount of each month depreciation

comes from assets are preserved in accumulated depreciation account in balance sheet liabilityside. (t the end of the year, those accumulated depreciation amounts wash out & then reduceit from asset side.

,o %aintain other side2

Mudaraba -undr( de#osit2

Sundry creditors are one of special type account by which different fund are collectedthrouh it. 'inally, 1udaraba term deposit, 47BC payment, -BC payment, C!B paymentetc when fund are collected then sundry account debited & credited the respectiveaccount those are related with collection fund. !t also serves banker as a collectionaccount & various commission are reali*ed by this account when funds are collected.

/very month balancin is made on this account to calculate non reversin entries. !ncome ta" on profit, /"cise duty, 6()billD, 6()4LCD, !) on bill, 6() on bankin

services are collected at the end of the week in Govt. account. /0!1 bank sends thesedeposits to head office.

Liabilities as #er contra2

4iabilities as per contra remains until liability clean. 5hen it clean then oes to asset.-ne of 6oucher is prepared for it. (sset as per contra is opposite to liabilities as percontra. 6oucher is prepared for both contra & then reverses it by postin.

Maintaining head office budget2

/very e"pense has a budet. ?ead office provide budet for each of head e"penses.6oucher is prepared for it. )houh these voucher e"penses are shown from each area.-n the other hand, income has also a budet & there is a voucher for it. !ncomes sendto head office as per area & a voucher is prepared for it.

arious state%ent of Bangladesh Bank2

(ccount section works with different statement of Banladesh Bank. (t the end of themonth, various statements have to send to Banladesh Bank. )hese statements are

o Schedule bank statisticSBS2Do Schedule bank statisticSBS2=Do 4are deposit statement

Other state%ent for bank2Some statements are prepared for bank to reali*e the position of overall branch. )heseare

Main2o 'a" report on monthly positiono (chievement of taret reporto +erformance statistics

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Others2o )o prepare half yearly closin & yearly statement

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>. (a) Custoer Service a!i!"Customer Service Bankin is the areate of functions, directed at providin services tosatisfy customers% financial and other relatedD needs and wants, more effectively and

efficiently than the competitors keepin in view the orani*ational obectives of the bank)his definition hihlihts the followin points

i. Banks provide service2with all the characteristics discussed earlier, bein associatedwith them.

ii. (im is to satisfy customer%s needs and wants.iii. )he needs and wants of the customer are by far financial in nature, and some may

be even incidental to or related to the main function.iv. )he competitive element, efficiency and effectiveness are maor factors in the

process.v. -rani*ational obectives are still the drivin force.

igure 582 Core %arketing conce#t of custo%er ser+ice.

Bank deals with providin services to satisfy customer%s financial needs and wants. Bankshave to discoverLascertainLanticipate the financial needs of the customers and offer theservices which can satisfy those needs. Banks may be re#uired to satisfy the customers%other related needs and wants. )he individuals and corporate bodies have certain financial

Marketing

o""ers

B*roducts,services, and

ex*eriencesC

Falue and

@atis"action

=eed,

wants anddemands

Exc)ange,transactions,

and

relations)i*s

Markets

8$


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needs in relation to money commodity. )o satisfy these financial needs customers wantspecific services. 7ifferent banks offer different benefits by offerin various schemes, whichcan take care of the wants of the customers.

igure 592 ,he relationshi# bet!een custo%er satisfaction and custo%er lo(alt(.

1arketin helps in achievin the orani*ational obectives of the bank. )his means thatmarketin is e#ually applicable to achieve commercial and social obectives of the banks.Banks have dual orani*ational obectives.

i. Commercial obective to make profit; andii. Social obective which is a developmental role particularly in the rural areas.)he service area approach adopted by the banks is a marketin approach whereby aspecific taret market is assined to each bank branch for its to practice need basedbankin activity in tune with the social obectives.

)he marketin concept points to the followin essentials, which contribute towards a

Customer Service of bank%s success.a. )he bank cannot e"ist without the customers.b. )he purpose of the bank is to create, win and keep a customer. )he customer is and

should be the central focus of everythin the bank does.c. !t is also a way of orani*in the bank. )he startin point for orani*ational desin

should be the customer and the bank should ensure that the services are performedand delivered in the most effective way. Service facilities also should be desined forcustomers% convenience.

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d. )he ultimate aim of a ban is to deliver total satisfaction to the customer.e. Customer satisfaction is affected by the performance of all the personnel of the

bank.

>.(b) Cha!!e$s of Distributio! of a!s)he channels of distribution in financial services perform a number of key functions, as follows

Sale and offer of services and products, as well as advisin customers. Contract and liaison with advertisin and public relations aencies to assist in desinin

more effective advertisinLpromotional campains. Gatherin of information necessary for plannin marketin activities, stratey decisions

and product development.

7istribution Channels

!ndirect Channels 7irect Channels

(encies !n shop Branches Branches

/lectronic 1ethods

()1 Bankin by 1ail +-S /')s !n )ouch

igure :52 Distribution channels.

>.(c) *$ectro!ic #ethods of Distributi!"2i!a!cia$ Services

)he need to make branches and distribution more efficient has led to the introduction ofelectronic methods in financial services. )he first ()1s automated teller machinesD were

+oint ofSalesD

/lectronicfund transferD

8%

(utomatic )eller1achineD

GiroD?ome 4ink

ServiceD


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introduced in the 8> in the form of cash dispensers by Barclays Bank in


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spent a lot of money advertisin this new venture. )he market they have tried to attract is theyouner market, particularly the ae roup 2, who are more financially aware and are used todealin with matters throuh the phone.+i *o%e Banking or $nJ,ouch inancial -er+ices

(nother innovative means of distributin bank services has been pioneered in the 8S(

throuh the application of computers. Computeri*ed facilities have been used insupermarkets to record each transaction with the respective customer%s account with thebank. )he Seattle2'irst 9ational Bank has promoted an in2touch home service thatprovides customers with access to a talkin computer from touch2tone phones at home. Bycallin up bank computer, the customer can instruct it to perform financial services such as

+ayin bills transferrin funds from his or her bank account to that of a creditor; (idin family book keepin by reportin e"penses, with a bi2weekly budet analysis

broken down into several cateories food, housin, clothin, and so onD; Computin income ta" data; Storin household records such as insurance policies, credit card numbers,

drivin license numbers and vehicle reistration numbers.

9ormally home bakin is likely to be ust one of a rane of services provided as part of ahome information system which also offers shoppin, news, entertainment an

report on exim bank

Documents