4 Kamal Report
-
Upload
sanjoy-babu -
Category
Documents
-
view
188 -
download
1
Transcript of 4 Kamal Report
![Page 1: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/1.jpg)
Where Credit & Commerce Integrates
1
Chapter -1:Introduction
![Page 2: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/2.jpg)
Where Credit & Commerce Integrates
1.1 Background of the Study:
Bachalor of Business Administration (BBA) is a specialized program. This
program is designed with an excellent combination of practical and theoretical
aspect. After completion the BBA examination twelve weeks is preserved for
internship. As a student of BBA with the requirement of my course, I was
assigned at National Credit And Commerce Bank, Halishahar Branch,
Chittagong for my internship.
Orientation in bank generally expresses the overall activities of the bank. A bank
is a service oriented as well as profit-oriented organization. Bank’s aim is to earn
profit by providing service to its customer and satisfying its stakeholders as well
as stockholders.
To perform these functions simultaneously the bank divides its operations in
three parts: General Banking, Loans and Advances, and Foreign Exchange. To
carry and maintain the work schedule properly and to achieve the ultimate goal
all the department of the bank should concentrate deeply and heartily on their
assigned activities. Moreover, all departments are equally important in a bank.
Of this is the case why I have intended to do my internship on orientation in the
bank on NCC Bank Limited.
I have tried my level best to use this opportunity to enrich my knowledge on
banking system. After observing thoroughly, I have completed this report based
on my findings and observing relating to the topic.
2
![Page 3: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/3.jpg)
Where Credit & Commerce Integrates
1.2 Objectives of the Study:
Every task has a particular aim. A study without objectives cannot reach the
destination. My internship program was also directed to some particular targets.
The main objective of this study is “The General banking Procedures of NCC
Bank Limited”. For searching the overall customer related job I had to find out
the general Banking procedure at this branch.
So the objectives of the study conducted in the NCC Bank Limited are
mentioned as under:
To be apprehended about real banking operations.
To know the functions of NCC Bank Limited.
To identify the customer servicing systems of the Bank.
To detect the employees capability to provide quality service.
To identify the problems & to suggest necessary measures to overcome
those.
3
![Page 4: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/4.jpg)
Where Credit & Commerce Integrates
1.3 Methodology of theStudy :
The study of the general banking of NCCBL is based on theoretical and
analytical. So the data are collected by systematic investigation. The most
important thing of the study is collected my information and data from two
sources:
One is that (Primary sources): These types of sources include the following:
1. Practical deskwork
2. Personal interview
3. Face to face conversation with the client
4. Observation of the General banking services
Another one is that (Secondary Sources):
1. Annual report of NCC Bank Limited
2. Bank’s statements
3. Manual published by NCC Bank Limited
4. Former research report
5. Different circulars of the Bank
1.4 Scope of the Study:
At NCC Bank Ltd. Halishahar Branch Chittagong, I tired to acquire knowledge
about the overall banking system. The bank had classified its total operation into
different sections.
These are:
Account Opening
Clearing
Ledger/ Deposit
Remittance
FDR
Loan and Advances
Foreign Exchange
4
![Page 5: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/5.jpg)
Where Credit & Commerce Integrates
1. 5 Limitations of the Study:
I have tried to present the paper with a very cautious approach. To prepare the
report I had to gather different relevant, books, brochures, journals and annual
reports of the concerned banks. To prepare this paper I had to face the following
constraints:
1. I have seen that it is hard to do the office job and prepare the report at a
same time. To collect data I had to visit different libraries and offices, but I
used to work in the office from 8.45 AM to 5:00PM. Therefore, it was very
tough to arrange the time for report writing and data collection.
2. Unavailability of sufficient written documents as required for making a
comprehensive study.
3. As a Bank organization the officers are involved with various functional
areas of NCCBL are very busy. So they cannot give me sufficient time as
I am required.
4. Due to maintain secrecy they avoid some of my question specially the
actual amount of specific items. It is hampered my analysis.
5. On-line system also briar for my study. Because they do all transaction
and record by automation system.
6. Some officers were absent and some were on their job training when I
was carrying on my internship. So that I cannot get the sufficient data
what I need.
5
![Page 6: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/6.jpg)
Where Credit & Commerce Integrates
6
Chapter –2: Overview of NCCBL
![Page 7: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/7.jpg)
Where Credit & Commerce Integrates
2.1 Historical Background of NCCBL:
National Credit and Commerce Bank Limited is one of the fastest growing banks
among all the private commercial banks in Bangladesh. Prior to conversion into
a schedule commercial bank, NCCBL was incorporated as Public limited
Investment Company in Bangladesh on 18th November 1985. It made its journey
with a modest beginning on 25th November 1985 with its Head Office at 7-8
Mothjheel C/A, Dhaka-1000. The aim of the company was to mobilize resources
from within and invest then in such a way so as to develop country’s industrial
trade sector and playing a catalyst role in the form of capital market as well.
National Credit and Commerce Bank Limited was incorporated in Bangladesh as
a banking company under the Companies Act 1994. The principal place of
business is the registered office at 7-8 Motijheel Commercial Area, Dhaka 1000.
It has 66th branches all over Bangladesh at April 2010. It carryout all banking
activities through its branches in Bangladesh.
The bank is listed with Dhaka Exchange Limited and Chittagong Stock Exchange
Limited as a publicly quoted company for its shares.
The bank commenced its banking business with sixteen branches from 17 May
1993. National Credit and Commerce Bank Limited is a progressive commercial
bank in private sector in Bangladesh. It gives customize service and maintains
harmonious banker customer relationship. It contributes towards formation of
national capital, growth of saving and investment in trade, commerce and
industrial sector.
7
![Page 8: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/8.jpg)
Where Credit & Commerce Integrates
2.2 Objectives of NCCBL:
NCCBL has several objectives. These are:
1. To encourage and broaden the base of investments.
2. To develop the capital market
3. To mobilize savings
4. To provide for good profit and sound growth.
5. To contribute to wards the formation of national capital.
6. To be most effective bank in terms of technology application.
7. To value and respect the customer and maintain harmonious banker
customer relationship.
2.3 Values of the NCC Bank Limited :
To have a strong customer focus and build relationship based on integrity,
superior service and manual benefit.
To work as a team to serve the best interests of the group.
To work for business innovation and improvements.
To provide recognition and reward on performance
To be responsible, trustworthy and law abiding in every sphere.
2.4 Mission statement of the NCCBL:
To mobilize financial resources from within and abroad to contribute to
Agricultures, Industry & Socio-economic development of the country and to pay
a catalytic role in the formation of capital market.
2.5 Vision of the NCCBL:
8
![Page 9: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/9.jpg)
Where Credit & Commerce Integrates
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.
2.6 Products and Service of NCCBL:
In line with changes in economic policies and with the implementation of financial
sector reforms, the banking sector of Bangladesh witness the introduction of
prudential mourns. Liberalization of interest rates, abolition of direct lending and
entry of new private banks, in this environment, banks in Bangladesh introduced
several products over time.
General Banking Activities:
NCCBL divides the whole general banking department in the following sections:
Accounts Opening Department
Deposit Department
Cash Counter
Accounts Department
Remittance Department
Advance Department
Foreign Exchange Department
Clearing Department
Account Opening Department :
The department of account opening has the following function-
Account Opening.
Cheque book issuing.
Signature scanning.
MSS opening.
MSS closing.
Account transfer.
Account Closing.
Answering customer quarries.
9
![Page 10: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/10.jpg)
Where Credit & Commerce Integrates
Before opening of a current or saving A/C, the customer must complete the
following formalities:
Application on the prescribed form.
Furnishing photographs.
Introduction by an A/C holder.
Putting specimen signature in the best specimen card.
Mandate if necessary.
After fulfilling the above formalities, NCCBL provides the customer a pay-in-slip
book and cheque book.
Deposit Department:
National Credit and Commerce Bank Limited offers the following types of
accounts:
Current Account
Savings Account
Fixed Deposit Account
Short Term Deposit Account
Special Deposit Scheme
Premium Term Deposit
Demand Deposit
Cash Counter:
Bank is the dealer of money. It receives money and pay money. Following are
some task done by the cash counter of NCCBL:
Cash Received.
Cash Payment.
Receives Utility Bills of T&T etc.
Working as agent of the time of issuing IPO of different companies.
Fund management by maintain sufficient amount of cash each date.
Account Department:
The main task of this department is to record all task of transaction of the
branch, confirming accuracy, preparing statement etc.
Preparing of supplementary sheet.
Marinating cash-cum-day book.
Posting in various ledgers.
10
![Page 11: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/11.jpg)
Where Credit & Commerce Integrates
Preparing of statement of daily affairs
Preparing of statement of daily inter branch transaction accounts.
Preparing of weekly statement of Bangladesh Bank.
Preparing of schedule Bank statement.
Local Remittance Department:
The department of remittance is one of the most significant pert of general
banking. The bank receives and transfers various types of bills through the
remittance within country. At present remittance department helps the operation
of foreign remittance cell smoothly. NCCBL charges commission based on bills
amount.
The following types of remittance are provided by the NCCBL:
Pay Order (P.O)
Demand Draft (D.D)
Telegraphic Transfer (T.T)
Mail Transfer (outside the city)
Pay slip
Security Deposit receipt
Advance Department:
For a rapid economic growth of a country, developed banking system can
provide the necessary boost. All of the function of a moderns bank, lending is the
most important. NCCBL offers its valuable customers both consumer credit
scheme and financing for small, medium and large scale business and industries
that fulfil the requirement of the bank and have return to the investment as well
as satisfy the clients. NCCBL provides loans and advances to the customer in
the followings:
1) General Loan Scheme.
2) Cash Credit Hypothecation.
3) Security over Draft (SOD).
4) Lease Financing.
5) Project Loan.
6) House Building and Repairing Loan.
11
![Page 12: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/12.jpg)
Where Credit & Commerce Integrates
7) Car Loan.
8) Consumer Finance Scheme.
Characteristics of these types of loans and advances are as follows:
Loan may be short/mid/long term.
Interest rate range is 12% to 16%.
Borrower can debit his loan account once; if necessary then
twice or thrice.
Separate ledger has to be maintained.
Repayment by instalment.
Interest charged on monthly basis.
Foreign Exchange Department:
Foreign Exchange may be defined as “the system of process of converting one
national currency with another and to transfer money from one country t another
country”.
The bank which is authorized by Bangladesh Bank for dealing Foreign
Exchange business is called authorized dealership. National Credit and
Commerce Bank Ltd, Halishahar Branch, Chittagong has no authorized
dealership license. Foreign trade operation continued to play a pivotal role in the
overall business development. There are twp types of foreign exchange
business:
1) Import Business.
2) Export Business.
Foreign trade is transacted either in the currency of the exporter’s country or that
of the importer’s country of that of a third country acceptable to both the exporter
and the importer.
Clearing Department:
Collections of cheques, drafts etc. on behalf of its customer is one of the basic
function of a commercial bank. Clearing house is an arrangement under which
12
![Page 13: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/13.jpg)
Where Credit & Commerce Integrates
member banks agree to meet through their representatives at the appointed time
and place to deliver instruments, drawn on the other and in exchange to receive.
It is the reciprocal claims of one bank against others are off set only the net
balance of drawing on the account of the debtor bank maintained with the central
bank.
Types of Clearing:
Outward Clearing: outward clearing means when a particular branch
receives instruments drawn on the other bank within the clearing zone
and those instruments for collection through the clearing arrangement is
considered as outward clearing for that particular branch.
Inward Clearing: when a particular branch receives instruments, which
on them and sent by other member bank for collection are treated as
inward clearing.
2.7 Functions of NCCBL:
The NCCBL performs all types of functions of a modern commercial bank.
a) The main task of the NCCBL is to accept deposit from various customers
through various accounts.
b) Provide loan on easy terms and conditions
c) It creates loan deposit
d) The bank invest it fund into profitable sector
e) It transfers money by Demand Draft (D.D), Pay Order (P.O) and
Telegraphic Transfer (T.T) etc.
f) The bank is doing the transaction of bill of exchange, cheque etc. on
behalf of the clients
g) Bank provides various information, guidance and suggestions for
promotion of trade and industry keeping in view of the overall economic
development of the country.
13
![Page 14: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/14.jpg)
Where Credit & Commerce Integrates
h) NCC Bank assists in the foreign exchange by issuing Letter of Credit and
insures the securities of valuable documents of clients.
i) It brings the increasing power of dimension of transaction
j) Above all, NCCBL helps the businessman financially by giving discount
facility of Letter of Guarantee.
2.8 Organizational Structure of the Bank:
NCC Bank Limited of Bangladesh
14
CHAIRMAN
BOARD OF DIRECTORS
MANAGING DIRECTORS
ADDITIONAL MANAGING DIRECTOR
EXECUTIVE VICE PRESIDENT
DEPUTY MANAGING DIRECTOR
SENIOR VICE PRESIDENT
VICE PRESIDENT
SENIOR ASSISTANT VICE PRESIDENT
SENIOR PRINCIPAL OFFICER
OFFICER
PRINCIPAL OFFICER
SENIOR OFFICER
PROBATIONARY OFFICER
ASSISTANT VICE PRESIDENT
![Page 15: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/15.jpg)
Where Credit & Commerce Integrates
2.9 Year wise Deposit of NCCBL:
Deposit 2006 2007 2008 2009 2010
Current Account 3070684540 3603928441 4365185051 4864150294 4709863820
Growth Rate ----- 17.37% 21.12% 11.43% 3.18%
Savings deposit 2109130157 2569312503 3248236813 3920781742 4919317959
Growth Rate --- 21.81% 26.42% 20.70% 25.46%
Fixed Deposit 12923329890 17534252160 21608793301 30880912000 33267700069
Growth Rate --- 35.68% 23.23% 42.90% 7.72%
Term Deposit 2898144627 3924315390 4963395284 6508949270 8537095031
Growth Rate --- 35.40% 26.47% 31.13% 31.15%
Total Deposits 21001289214 27631808494 34185610449 46174793306 51433976879
Total Growth Rate --- 31.57% 23.71% 35.08% 11.39%
Growth rate of Current Deposit: From the table we see that, in Halishahar
Branch in 2006, 2007and 2008 the amount of CD A/C was Tk. 38964480.308,
Tk. 41590856.82 and Tk. 48040926.61 and growth rate in 2007 and 2008 was
6.74%and 15.50% respectively. But in 2008 the growth rate was decreased by
increasing deposit amount. In 2009 the amount of CD A/C was decreased and
growth rate also fall by (-50.87%). And in 2010 the amount again increased and
growth rate also increased by 49.26%.
But in NCCBL, Bangladesh the amount CD A/C has been increased gradually
and but growth rate in 2009 and 2010 has been fall from the previous year.
15
JUNIOR OFFICER
ASSISTANT OFFICER
![Page 16: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/16.jpg)
Where Credit & Commerce Integrates
Growth rate of Savings Deposit: From the table we see that, in Halishahar
Branch in 2006, 2007 and 2008 the amount of Savings A/C has been increased
year by year. But the growth rate has been increased in decreasing rate.
In NCCBL, Bangladesh the growth rate of savings A/C increased year by year.
Growth rate of Fixed Deposit: In Halishahar Branch, the growth rate of FDR in
2008, 2009 and 2010 has been decrease (110.47%), (68.80%) and (28.95%),
but the amount increased year by year.
In NCCBL the growth rate of FDR in 2008 has been decreased by 23.23% where
in 2007 growth was 35.68%. Again in 2008 the growth increased and in 2010 the
growth rate has been fall by 7.72%.
Growth rate of Term Deposit: In NCCBL, Bangladesh the growth rate of term
deposit in 2008 has been fall and in 2009 and 2010 the growth rate has been
increases.
In Halishahar Br. the growth rate of term deposit has been fall gradually but the
amount of term deposit was incr
eases.
Growth rate of Total Deposits: With compare to both banks, we can see that,
the growth rate of total deposit of Halishahar Branch is higher than the growth
rate of NCCBL Bangladesh, which is the good for the Halishahar branch to
compete with other banks.
16
![Page 17: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/17.jpg)
Where Credit & Commerce Integrates
17
![Page 18: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/18.jpg)
Where Credit & Commerce Integrates
18
![Page 19: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/19.jpg)
Where Credit & Commerce Integrates
19
![Page 20: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/20.jpg)
Where Credit & Commerce Integrates
20
![Page 21: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/21.jpg)
Where Credit & Commerce Integrates
21
![Page 22: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/22.jpg)
Where Credit & Commerce Integrates
22
![Page 23: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/23.jpg)
Where Credit & Commerce Integrates
23
![Page 24: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/24.jpg)
Where Credit & Commerce Integrates
Chapter-3: General Banking Procedures
24
![Page 25: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/25.jpg)
Where Credit & Commerce Integrates
GeneralBanking :
Financial institution/ intermediary that mediates or stands between ultimate
borrowers and ultimate lenders is knows as banking financial institution. Banks
perform this function in two ways- taking deposits from various areas in different
forms and lending that accumulated amount of money to the potential investors
in other different forms.
General Banking is the starting point of all the banking operating. General
Banking department aids in taking deposits and simultaneously provides some
ancillaries services. It provides those customers who come frequently and those
customers who come one time in banking for enjoying ancillary services. In
some general banking activities, there is no relation between banker and
customers who will take only one service form bank. On the other hand, there
are some customers with who bank are doing its business frequently. It is the
department, which provides day-to-day services to the customers. Everyday it
receives deposits from the customers and meets their demand for cash by
honoring cheques. It opens new accounts, demit funds, issue bank drafts and
pay orders etc. since bank in confined to provide the service everyday general
banking is also known as retail banking.
3.1 General Banking consists of the many sections in the branch. These are:
Customer Service.
Account Opening/Closing.
Remittance.
▫ Payment Order Issue
▫ Demand Draft Issue/Collection
▫ T.T. Issue/Collection
▫ Endorsements
▫ IBC/OBC Collection.
Deposit Department.
Locker Service.
25
![Page 26: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/26.jpg)
Where Credit & Commerce Integrates
Account’s Department.
▫ Clearing.
▫ Transfer.
▫ Cash.
3.2 Customer Services of NCC BANK LIMITED :
Professional merit and Competency, Flexibility, Determination and Dedication
are the core resources that NCCBL consider to be of paramount importance for
building a client oriented modern banking. Customer satisfaction is NCCBL
foremost professional undertaking. Therefore, a satisfied client is NCCBL
precious product and they consider them NCCBL aBBAssador in the market.
Customer Service In Charge: Mr.Md.Didarul Alam [ Junior Officer] who guided me as a friend.
3.3 Account Opening of NCCBL: Under this department, NCCBL officer opens different types of account on the
request of clients. The procedure of opening account is given bellow:
Types of Accounts:
General Products are: Current Deposit:
Interest Rate 0.00%
▫ Individual Account
▫ Joint Account
▫ Proprietor Ship Account
▫ Limited Company Account
Savings Deposits:
Interest Rate 6%
▫ Individual Account
▫ Joint Account
▫ Proprietor Ship Account
▫ Limited Company Account
Short Term Deposits:
26
![Page 27: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/27.jpg)
Where Credit & Commerce Integrates
Interest Rate 6.00%
▫ Individual Account
▫ Joint Account
▫ Proprietor Ship Account
▫ Limited Company Account
Fixed Deposits:
Fixed deposit is one, which is repayable after the expiry of a predetermined
period fixed by him. The period varies form 3 month to 12 months. These
deposits are not repayable on demand but they are withdrawable subject to a
period of notice. Hence, it is a popularly known as ‘Time Deposit’ or ‘Time
Liabilities”. Normally the money on a fixed deposit is not repayable before the
expiry of a fixed period.
Before opening a Fixed Deposit Account a customer has to fill up an application
form which contains the followings:
▫ Amount in figures
▫ Beneficiary’s name and address
▫ Period
▫ Rate of interest
▫ Date of issue
▫ Date of maturity
▫ Instructions:
- To be renewed automatically with interest for the next period.
- Not to be renewed for next period.
- Pay interest to account no. (-------) on maturity
▫ Special instruction
▫ How the account will be operated (singly or jointly)
▫ Signature (s)
▫ FDR no.
Then a FDR account is opened and it is recorded in the FDR Register which
contains the following information,-
▫ FDR A/C no.
▫ FDR (Fixed Deposit Receipt) no.
27
![Page 28: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/28.jpg)
Where Credit & Commerce Integrates
▫ Name of the FDR Holder with address
▫ Maturity period
▫ Maturity date
▫ Interest rate
In case of Fixed Deposit Account the Bank needs to maintain a cash reserve. So
NCCBL offers a high interest rate in Fixed Deposit accounts. The interest rates
followed by NCCBL in Fixed Deposit accounts are:
Interest Rate:
3 months to 12 months and above 13percent
Source: GB Department & Banking Operations Division, circular REF:
IC#BOD/21/11 Date: 04-06-2011
The FDR becomes renewed automatically in NCCBL if the customer does not
encash it within 7 days of maturity. In case of encashment of FDR in maturity,
following accounting treatments are given:
Excise Duty on FDR--------------------Dr.
Income Tax on interest --------------Dr.
FDR A/C---------------------------------Dr.
Cash A/C----------------------------------------Cr.
Interest on FDR A/C---------------------------Cr.
If the customer wants to draw the interest only, then following entries are given:
Interest on FDR A/C-----------------Dr.
Cash A/C---------------------------------------Cr.
In case of ‘before maturity enactment’ interest is calculated for the days from the
date opening FDR:
Deposit Rate:
28
![Page 29: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/29.jpg)
Where Credit & Commerce Integrates
3.4 Consumer Banking Products:1. Brick by Brick Savings Scheme
2. Monthly Benefit Plan
3. Save Everyday Plan
4. Childrens Education Plan
5. Consumer Credit Scheme
6. Best Invest Plan
7. Unique savings Plan
Some of NCCBL Consumer Products
29
![Page 30: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/30.jpg)
Where Credit & Commerce Integrates
1. Brick By Brick Savings Scheme:
Monthly Installment 5 Years* 8 Years* 10 Years*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount. Thereafter in
multiples of Tk. 5000 up to a limit of Tk. 100,000.
2. Monthly Benefit Plan:
Deposit Amount Income Amount for 3-year plan* Income Amount for 5-year
plan*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount.
3. Save Everyday Plan:
Saving money for the future is a common practice in any society. Savings help
you to build a better tomorrow. Regular saving makes a man become disciplined,
self confident and successful.
NCCBL offers you "Save Everyday" Plan. The primary advantage of this plan is
that you are absolutely free to choose your own time for depositing money into
this account. You can deposit daily, weekly or monthly. The choice is yours, but
the transactions will have to be within the Bank's transaction hour.
This is a 5 year plan and you will be required to open the account with an initial
deposit of Tk. 2500/= only. We offer you very attractive interest rate which is
accrued in this account on a daily basis.
4. Childrens Education Plan:
Monthly Installment 4 Years* 7 Years* 9 Years*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount.
30
![Page 31: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/31.jpg)
Where Credit & Commerce Integrates
5. Consumer Credit Scheme:
In order to make a significant contribution in the living standards of the people of
medium and low income category, NCCBL has introduced a scheme called
"Consumer Credit Scheme". With a view to materialize the dreams of those who
are unable to make one time investment from their own savings, one can now
afford to buy necessary household equipments and thus improve the standard of
living.
All sorts of household durables eg. Television, Refrigerators, Computers, Air
Conditioners, Video Cameras, Washing/ Drying Machines and Furnitures are
allowed under this scheme. One can buy Motorcycle too under this programme.
The collateral security is minimum and the interest rates are one of the lowest in the market. Please contact the nearest branch for details.
6. Best Invest:
Best Invest offers you efficient high return investment plan. This plan helps you
to build up a sizeable income in easy and affordable installments. This plan
allows you to own 5 times the initial invested amount. BestInvest offers two
separate and convenient term deposit periods for 4 years and 6 years
respectively.
BestInvest is available in units worth Tk.50,000/- each. You will invest
Tk.10,000/- as down payment for purchasing 1 (one) unit and the Bank will
provide loan for Tk.40,000/-. The customer also has the option to buy units in
multiples of Tk. 50,000/- but maximum upto Tk. 1,00,00,000/- (one crore).
This is a unique high return plan catering to all income group. So do not miss the opportunity.
Double Saver Plan:
Deposit Amount Maturity Value after 6 Years*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount.
Triple Saver Plan:
31
![Page 32: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/32.jpg)
Where Credit & Commerce Integrates
Deposit Amount Maturity Value after 11 Years*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount.
Millionaire Plan:
Monthly Installment Year Maturity Value*
* The maturity value is an indicative figure. Tax/Excise Duty will be deducted as
per govt. rules. 90% Loan Advantage on deposited amount.
7. Unique Savings Plan:
Unique Savings Plan is an any day, any amount savings plan. The beauty of this
plan is that a customer can deposit any day, any time and any amount.
Unique Savings Plan offers you to deposit any amount of your choice but not
less than Tk. 500/- for 3/4/5 years. This is a high income plan with withdrawal
facilities. The withdrawal facility will help you at the time of any emergency. You
can withdraw 50% of the deposited balance for once a month. At maturity you
will get a handsome amount.
3.5 Procedure of Account Opening:
Account Opening (Normal Account):
▫ Collect an Account opening form from the Bank.
▫ Fill all the requirements of the form.
▫ Nominee is must be specified.
▫ Photograph is most important for any account.
▫ The account holder sign of his/her own self in front or the specific bank
principle Officer in the account opening form.
Account Opening (Saving Account):
▫ Collect an Account opening form from the Bank.
32
![Page 33: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/33.jpg)
Where Credit & Commerce Integrates
▫ Fill all the requirements of the form.
▫ Nominee is must be specified.
▫ Photograph is most important for any account.
▫ The account holder sign of his/her own self in front or the specific bank
principle Officer in the account opening form.
▫ To open this account the most important things is that Passport Photocopy or
the Word Commissioner Certificate must have to add with the account opening
form.
Account Opening (Current Deposit Account):
▫ Collect an Account opening form from the Bank.
▫ Fill all the requirements of the form.
▫ Nominee is must be specified.
▫ Photograph is most important for any account.
▫ To open this account the most important things is that Passport Photocopy or
the Word Commissioner Certificate must have to add with the account opening
form and also enclose the form 12 with the account opening form.
3.6Checklist of Documents to be obtained for various
types of ACCOUNTS:
Sole Proprietorship:
1. Signature Card.
2. Photograph of signatories attested by introducer.
3. Copy of valid Trade License.
4. TIN Certificate.
5. 18-A permission from Bangladesh Bank (for GSA & Agents only).
Partnership:
1. Signature Card.
2. Photography of signatories attested by introducer.
33
![Page 34: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/34.jpg)
Where Credit & Commerce Integrates
3. Partnership Deed.
4. Partners letter of authority to open account and authorization for operation.
5. Copy of valid Trade License.
6. 18-A permission from Bangladesh Bank (for GSA & Agents only).
Limited Liability Company:
1. Signature Card.
2. Photograph of signatories attested by introducer.
3. Copy of Memorandum and Articles of Association (Certified by RJSC).
4. Copy of Certificate of Incorporation and commencement of business (In case
of public Ltd. Co.).
5. Copy of Board Resolution to open the account and authorization for operation.
6. List of Directors and signatories along with addresses.
7. Latest copy of From XII.
Association/Trust/Society:
1. Signature Card.
2. Photograph of signatories attested by introducer.
3. Copy of Resolution of governing body to open the account and authorization
for operation.
4. Copy of consolation / bylaws/ rules.
5. Certificate of registration.
6. List of authorized signatories and members of the governing bodies along
with address.
7. Trust Deed (for Trust account only).
3.7 Interest Posting to Client’s account:
Bangladesh Government has circulated that, 10% deduction from the Bank’s
Internal Account’s. This 10% tax deduction from the client’s interest.
Other wise another circulation is that, from the OBC collection every bank cut
off there OBC commission as income account, here Bangladesh Bank said that
15% money cut off from the OBC collection as Vat on Others.
34
![Page 35: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/35.jpg)
Where Credit & Commerce Integrates
3.8 Cheque Book Issues:Types of Cheque Book’s:
▫ Savings Account – 10 Leaves
▫ Current Deposit Account – 10 Leaves
▫ Current Deposit Account – 25 Leaves (CDTF)
▫ Current Deposit Account – 50 Leaves (CDF)
Cheque Issuing is Two Types:
Direct requisition slip
Cheque Book’s requisition slip
Customers Service Officer receives these types of slip from the client’s and gives
the cheque books under processing. Processing means Cheque Book’s collect
from the VOLT and the put account number in the cheque book, write down the
serial number of the cheque book in the requisition slip and cheque book
register, then Verified client signature. After all this things the Principal officer
sign in the cheque leaves and sent the cheque book to another Principal officer
for sign, after his sign the client receive the cheque book. These things the
Principal Officer for sign, after his sign the client receive the cheque book. Then
Principal Officer posting that cheque books leaves number in the computer data
processing system.
A cover file containing the requisition slip is effectively preserved as vouchers. If
any defect is noticed by the ledger keeper, he makes a remark to that effect on
the requisition slip and forward it to the cancellation officer to decide whether a
new checkbook to be issued to the customer or not.
3.9 Account Closing:
For two reasons, one can be closed. One is by banker and other is by the
customer.
By banker: If any customer doesn’t maintain any transaction within six years
and the A/C balance becomes lower than the minimum balance, banker has the
right to close an A/C.
35
![Page 36: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/36.jpg)
Where Credit & Commerce Integrates
By customer: If the customer wants to close his A/C, he writes an application to
the manager urging him to close his A/C.
Different procedures are followed in cash of different types of A/C to close:
Fixed deposit A/C is closed after the termination of the period.
Brick by Brick A/C is very easily closing if one of the clients didn’t pay his/her
monthly installment at the bank three months one after one, in this way three
months.
Another account’s will be closed on the parties advice, if they want to close any
one of the account clients must have to submit an A/C closing letter through des
pass. Then the Sr. Principal Officer checks it out and closes the A/C.
Closing process for current & savings A/C:
After receiving customer’s application the officer verifies the balance of the
A/C.
He then calculates interest and other charges accumulated on the A/C.
If it bears a credit balance, the officer writes advice voucher. He gives
necessary accounting entries post to accounts section.
The balance is returned to the customer. And lastly the A/C is closed.
But in practice, normally the customers don’t close A/C willingly. At times,
customers don’t maintain any transaction for long time. Is this situation at first,
the A/C becomes dormant and ultimately it is closed by the bank.
3.10 Remittance:
Remittance of funds is ancillary services of NCCBL. It aids to remit fund from
one place to another place on behalf of its customers as well as non- customers
of bank. NCCBL has its branches in the major cities of the country and therefore,
it serves as one of the best mediums for remittance of funds from one place to
another.
The main instruments used by NCCBL, MOTIJHEEL Branch for remittance of
funds.
36
![Page 37: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/37.jpg)
Where Credit & Commerce Integrates
▫ Payment Order Issue/Collection
▫ Demand Draft Issue/Collection
▫ T.T. Issue/Collection
▫ Endorsements
▫ Travelers Cheque Issuance
▫ IBC/OBC Collection.
Payment Order Issue/Collection:
The pay order is an instrument issued by bank, instructing itself a certain amount
of money mentioned in the instrument taking amount of money and commission
when it is presented in bank. Only the branch of the bank that has issued it will
make the payment of pay order.
Issuing of Pay Order:
The procedures for issuing a Pay Order are as follows:
▫ Deposit money by the customer along with application form.
▫ Give necessary entry in the bills payable (Pay Order) register where payee’s
name, date, PO no, etc is mentioned.
▫ Prepared the instrument.
▫ After scrutinizing and approval of the instrument by the authority, it is delivered
to customer. Signature of customer is taken on the counterpart.
Different modes of PO when a customer can purchase:
By cash:
Cash A/C Debit
Bills payable (PO) A/C Credit.
Income on commission A/C Credit.
By account:
Customer’s A/C Debit
Bills payable (PO) A/C Credit.
Income on commission A/C Credit.
37
![Page 38: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/38.jpg)
Where Credit & Commerce Integrates
By transfer:
NCCBL General/ other Dept Clients A/C Debit
Bills payable (PO) A/C Credit.
Income on commission A/C Credit.
PO A/C is the current liabilities of bank, which is acquired to be discharged by
beneficiaries against cash or through an account.
Settlement of a PO:
When PO submitted by collecting bank through clearing house, the issuing bank
gives payment.
Bills payable (PO) A/C Debit
NCCBL General A/C Credit.
But before giving payment it is duty for issuing to observe whether endorsement
was given by the collecting bank or not, then the instrument is dishonored and
marking ‘Endorsement required’.
Cancellation of a Pay Order:
If a buyer wants to cancel it, he should submit a letter of instrument in this regard
and also return the instrument.
Accounting treatment: Adjustment entry wills be-
Bills payable (PO) ---------------Dr.
Customer A/C------------------Cr.
When PO is lost:
If the instrument is lost, the holder will inform to the issuing bank immediately.
Bank will mark ‘stop payment’ on the Bills payable (PO) Register. Buyer will then
ask for a new instrument by submitting a GD copy, and indemnity bond. A new
instrument will be delivered.
Demand Draft Issue/Collection:
The person intending to remit the money through a Demand Draft (DD) has to
deposit the money to be remitted with the commission which the banker charges
for its services. The amount of commission depends on the amount to be
remitted. On issue of the DD, the remitter does not remain a party to the
instrument: i) Drawer branch ii) Drawee branch iii) Payee. This is treated as the
38
![Page 39: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/39.jpg)
Where Credit & Commerce Integrates
current liability of the bank as the banker on the presentation of the instrument
should pay the money. The banker event on receiving instructions from the
remitter cannot stop the payment of the instrument. Stop payment can be done
in the following cases:
Loss of draft before endorsement: In this case, “Draft reported to be lost,
payee’s endorsement requires verification” is marked.
Loss of draft after endorsement: In this case, the branch first satisfies itself
about the claimant and the endorsement in his favor.
Accounting treatment:
In case of issuing of the instrument:
Cash/ customer’s A/C---------------------Dr.
NCCBL General A/C (Drawn on branch)----------Cr.
Income A/C commission---------------------------Cr.
After giving these entries an Inter Bank Credit Advice is prepared which contains
the controlling number, depicting that the branch is credited to whom it is issued.
An IBCA implies the following entries,
NCCBL General A/C Issuing Branch -------Dr.
Drawn on branch------------------------------------Cr.
Role of the Drawn Branch:
After receiving the IBCA lodgment is done by the branch. The following entries
are given “DD In-Issuing branch” register:
Issuing branch A/C-------------------------Dr.
Bills Payable ---------------------------------------Cr.
(After receiving an IBCA)
Bills Payable (DD) A/C--------------------Dr.
Client’s A/C--------------------------------Dr.
Entries are given in “DD In-Issuing branch” register:
Issuing branch A/C-----------------------Dr.
Bills Payable---------------------------------------Cr.
(After receiving an IBCA)
39
![Page 40: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/40.jpg)
Where Credit & Commerce Integrates
Bills Payable (DD) A/C------------------Dr.
Client’s A/C------------------------------Dr.
3.11 Charges:
A commission of 0.15% is taken on the draft value & Tk.50/= is taken as postal
charge.
3.12 Cancellation:
To cancel an issued DD, the client has to submit an application. Issuing branch
then sends an Inter Branch Debit Advice (IBDA) to the drawn branch against
previously issued IBCA.
After that the following entries are given:
General A/C drawn on branch---------Dr.
Client’s A/C ---------------------------------------Cr.
3.13 Issuing of Duplicate DD:
If the customer wants to issue a duplicate DD, than customer is asked to do the
following formalities:
Making a general diary (GD) in the nearest Police Station.
Furnishing an Indemnity Bond in Tk.50/= stamp
The banker immediately marks “stop payment” in the register after receiving the
application from the customer and a duplicate DD is issued.
3.14 T.T. Issue/Collection:
Telex transfer (TT) is another widely used mode for remittances of funds. In case
of telex transfer the message for transfer of funds is communicated through
tested telex. NCCBL generally recovers from the telex charges in addition to the
usual service charges.
3.15 Issuing of TT:
40
![Page 41: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/41.jpg)
Where Credit & Commerce Integrates
NCCBL follows the following procedures:
The customer deposits money with NCCBL to be sent.
The customer obtains a cash memo containing TT serial number.
TT serial number, notifying part name is mentioned in the telex message.
The Telex Department confirms transmission of the telex.
Accounting entries for TT:
Cash A/C Client’s A/C -----------------------Dr.
NCCBL General A/C (Motijil branch)---------------Cr.
Procedures for the incoming TT:
After receiving the telex, it is authenticated by test. TT Serial number is verified
by the “TT in-Concern branch” register. The following entries are given in the
vouchers:
NCCBL General A/C (Motijil branch)-------Dr.
Client’s A/C-------------------------------------------Cr.
Tk. 50/- is taken as postal charge. The minimum commission is Tk. 50/- or
o.15% of the amount whichever is higher.
3.16 Endorsements:
NCCBL endorses US$ in passports. To endorse US Dollar, the client has to
apply in the prescribed from (TM Form).
The following entries are given in this regard:
Cash or Customers’ A/C-----------------Dr.
Foreign Currency on Hand< Dollar Special> ---------Cr.
3.17 Locker Service:
NCCBL Halishar Branch is providing facility of locker service for the purpose of
safeguarding the valuable property of customers. The person or organization
that has any account in bank branch can enjoy this service. They keep their
valuable assets in banker’s custody. Customers have right to look after with a
41
![Page 42: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/42.jpg)
Where Credit & Commerce Integrates
key of their individual locker provided by bank. NCCBL maintains the following
types of lockers:
▫ Large locker.
▫ Medium locker.
▫ Small locker.
For enjoying this service, clients have to give charge yearly Tk.2500/-, Tk.2000/-
and Tk.1500/- for large, medium and small locker respectively.
3.18 Accounts Department:
Accounts Department is play most vital role in Banking. Accounts Department is
a department with which each and every department is related. It records the
profit & loss A/C and statement of assets and liabilities by applying “Golden
Rules” of book keeping. The functions of it are theoretical & computerized based.
NCCBL Halishahar Branch records its accounts daily, weekly, and monthly every
record. NCCBL Halishahar Branch Accounts Department in Charge: Mr. Kazi
Imamul Haque, Sr. Executive Officer (having 12 years of experience in banking
sector). Another officer’s are: Mr. Tarek, (Officer), Mr. Hamid (Teller-Officer), Mr.
Sohel(Teller-Officer).
This entire executive’s helps me a lot in my internship program at NCCBL. They
didn’t guide me as an Internee; they guide me as a training officer of NCCBL to
gather practical knowledge about Banking. They tried there best to inform me
every thing about accounts department. I hope I knew every thing that gave me
as a new comer in banking sector.
Basically Accounts Department is not alone. Accounts department is a mix of as
follows:
1. Cash
2. Transfer
3. Clearing
CASH:
42
![Page 43: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/43.jpg)
Where Credit & Commerce Integrates
Mr. Kazi Imamul Haque, Sr. Executive Officer and Mr. Md. Tarek (Officer) is the
cash in charge. Both of the two senior executives help’s me lot to get practical
knowledge and prepare this report.
The cash section of any branch plays very significant role in Accounts
Department. Because, it deals with most liquid assets the NCCBL Halishahar
Branch has an equipped cash section. This section receives cash from
depositors and pay cash against cheque, draft, PO, and pay in slip over the
counter. Every bank must have a cash counter where customer withdrawn and
deposit there money. When the valued client’s deposit their money at the cash
counter they must have to full fill the deposit slip his/her own, then they sing as
the depositor option’s then they deposit their money through cash officer at the
cash counter.
SEVERAL TYPES OF DEPOSIT SLIP:
There are several types of deposit slip as follows:
Current Deposit A/C Slip,
Saving’s Deposit A/C Slip,
Festival Deposit A/C Slip,
Brick By Brick Deposit A/C Slip,
Pay order Slip,
Demand Draft Slip,
T.T. Slip.
After paying this kind’s of slip, the valued client waits for the deposit slip book out
side of the cash counter. The cash officer deposit the money in there account
through computer software, while the depositors account credited, then the cash
officer put a seal in the deposit slip and return it to the client.
RECEIVING CASH:
Any people who want to deposit money will fill up the deposit slip and give the
form along with the money to the cash officer over the counter. The cash officer
counts the cash and compares with the figure written in the deposit slip. Then he
43
![Page 44: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/44.jpg)
Where Credit & Commerce Integrates
put his signature on the slip along with the ‘cash received’ seal and records in
the cash receive register book against A/C number.
At the end of the procedure, the cash officer passes the deposit slip to the
counter section for posting purpose and delivers duplicate slip to the clients.
Account treatment:
Cash A/C--------------------- Dr.
Customer’s A/C------------- Cr.
DISBURSING CASH:
The drawn who wants to receive money against cheque comes to the payment
counter and presents his cheque to the officer. He verifies the following
information:
▫ Date of the cheque
▫ Signature of the A/C holder
▫ Material alteration
▫ Whether the cheque is crossed or not
▫ Whether the cheque is endorsed or not
▫ Whether the amount in figure and in word correspondent or not
Then he checks the cheque from computer for further verification. Here the
following information is checked:
▫ Whether there is sufficient balance or not
▫ Whether there is stop payment instruction or not
▫ Whether there is any legal obstruction (Garnishee Order) or not
After checking everything, if all are in order the cash officer gives amount to the
holder and records in the paid register.
Account treatment:
Customer’s A/C Dr.
Cash A/C Cr.
The cash section of NCCBL deals with all types of negotiable instruments, cash
and other instruments and treated as a sensitive section of the bank. It includes
the vault which is used as the store of cash instruments. The vault is insured up
44
![Page 45: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/45.jpg)
Where Credit & Commerce Integrates
to Tk. 60 lacs. If the cash stock goes beyond this limit, the excess cash is then
transferred to Principle Branch Office. When the excess cash is transferred to
NCCBL Principle Branch Office the cash officer issues IBDA.
Account treatment:
NCCBL General A/C Dr.
Cash A/C Cr.
When cash is brought from NCCBL Principle Branch Office.
Accounting treatment:
Cash A/C Dr.
NCCBL General A/C Cr.
TRANSFER:
Transfer is not a critical sector in banking but it is very important. Transfers play
a vital role in banking sector. So now we have to know what transfer is: basically
transfer is a type of register maintaining matter. In this register officer write down
every day transactions in Debit and Credit side then the officer calculate both the
side of the register if both side shown same amount, it means that the total day’s
transaction is completely okay.
CLEARING:
Clearing is one of the magical parts of banking. I really enjoyed this part of the
accounts department and banking sector. In NCC Bank Limited clearing in
charges Mr. Md. Jahir Ahmed (Officer), I did work with him. I went Bangladesh
Bank lot’s of time with Mr. Md. Jahir Ahmed.
What is Clearing House?
In Bangladesh Bank, there is a very large room, which contains fifty (50) or more
tables for each bank that is called the clearing house.
Nature of clearing house:
1st Clearing House
Return Clearing House
Clearing House Process:
45
![Page 46: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/46.jpg)
Where Credit & Commerce Integrates
Every bank has an officer of clearinghouse who is work with Bangladesh Bank
clearing house. Acutally most of major client deposit their account in different
kinds of bank cheques. Clearing officer check all the cheques and deposit slip
very carefully and then he received the cheque. After that the clearing officer
posting all the cheques in computer software which is recognized through
Bankgladesh bank computer department. Then clearing officer seal all the
cheques in advance date after that the officer endorsement all the cheques and
sign all the cheques. All the cheques are posted in the computer by branch wise,
then officer print the entire document and staple all the cheques by branch wise
this is called schedule of clearing house. It is a very difficult job to staple all the
cheques, because some time’s the cheques are huge in quantity, it may be 250
to 400, this is very vital job because every cheque must have to staple very
carefully, it means cheque amount and the print sheet amount and cheque
branch must have to be same. If the cheques staple in wrong direction, the
cheque may be return from another bank, that’s why NCCBL not to be able to
credited party account.
Then the clearinghouse officer copying all the document in two floppy dist as per
Bangladesh Bank requirement. When the clearing officers enter the
clearinghouse, his first job is that the floppy dlivered to the Bangladesh Bank
computer department.
All of the procedure the clearing in charge goes to the Bangladesh Bank clearing
house before 10 am in the morning. The clearing officer check all the bank’s
cheque and he put all the cheques in bank wise, like as this another bank’s
delivered there cheques in NCCBL desk. Then the officers of NCCBL have to
calculate all the cheques by using calculator machine, Staple pin remover, and
then he divided all the cheques as NCCBL Branch wise.
Types of Clearing Cheque:
NCCBL Halishahar Branch performs the bill clearing function through
Bangladesh Bank. NCCBL Halishahar Branch acts as the agent of all NCCBL
branches for the clearing house of the Bangladesh Bank. There are two types of
cheque which are-
46
![Page 47: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/47.jpg)
Where Credit & Commerce Integrates
1. Inward clearing cheque
2. Outward clearing cheque.
INWARD CHEQUES:
Inward cheques are those ones drawn the respective branch which have been
presented on other banks and will be cleared / honored through the clearing
house of Bangladesh Bank. Then the cheque is called inward cheque of NCCBL
Halishahar Branch.
Accounting treatment:
Customer’s A/C Debit.
NCCBL General A/c credit.
OUTWARD CHEQUES :
Outward cheques are those ones drawn on other bank branches which are
presented on the concerned branch for collection through clearing house of
Bangladesh Bank. These cheques are called outward clearing cheques.
RECOGNIZED BANK’S AS THE MEMBER OF BANGLADESH BANK CLEARING HOUSE WITH THEIR CLEARINGHOUSE CODE:
Reason for the Return Cheques:
� Memorandum.
NCC BANK LIMITED
__________ Branch Date:_____________
Cheque(s) No:_________________ for Taka ________________
Is/are returned un-paid for reason(s) no_____________________
� Not arrange for
� Effects not cleared, may be present again.
47
![Page 48: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/48.jpg)
Where Credit & Commerce Integrates
� Exceeds arrangement.
� Full neither covers nor received.
� Payments stopped by drawer.
� ________ Payee’s endorsement irregular requires bank’s confirmation.
� ________ Payee’s endorsement irregular, illegible / required.
� Drawer signature differs / required.
� Alteration in Date / figures / words required drawer’s full signature.
� Cheque is post dated / out of date / mutilated.
� Amount in word and figure differs.
� Crossed cheque must be presented through a Bank.
� Clearing stamps required.
� Addition to Bank discharge should b authenticated.
� Cheque crossed “Account’s Payees Only”.
� Collecting Bank discharge irregular.
SCOPES:
� NCCBL has a good General Banking & Account Department.
� It is one of the leading banks in Bangladesh.
� Information is available.
� Book’s notes and journals are available.
Debit Voucher:
For making cash payment like entertainment, conveyance, Account Department
writes a debit voucher. Amount is withdrawn through cash section by presenting
debit voucher.
Statement of affairs:
Accounts section prepares the statement of affairs for finding the profit /loss as
well as amount of assets and liabilities of concerned branch per day.
Theoretically; it is called financial statement and has two parts:
� Income and Expenditure A/C.
48
![Page 49: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/49.jpg)
Where Credit & Commerce Integrates
� Statement of assets & liabilities.
AMORTIZATION AND DEPRECIATION:
Amortization is the allocation of the cost of an intangible asset to expense. For
example: prepaid expenditure, prepaid insurance and goodwill etc. Amortization
schedule is determined by the decision of management.
Depreciation is a process of cost allocation of assets not a process assets
valuation.
� Fixed Assets have been show at written down value.
� Depreciation is charged at the following rates on reducing balance method
on all fixed assets other than motor vehicles, which are deprecated on straight-
line basis:
Particulars of assets Rate of Depreciation
Immovable Property 2.50%
Furniture 10%
Interior Decoration 10%
Office Equipment 20%
Motor Vehicles 20%
Books & Periodicals 10%
� Assets purchased during the year are depreciated from the date of
acquisition.
FUNCTIONS PROVIDED BY ACCOUNTS DEPARTMENT :
Like all other Banks, in NCCBL Accounts Department is regarded as the nerve
Center of the bank. In banking business, transactions are done every day and
these transactions are to be recorded properly and systematically as the banks
49
![Page 50: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/50.jpg)
Where Credit & Commerce Integrates
deal with the depositors’ money. Any deviation in proper recording may hamper
public confidence and the bank has to suffer a lot otherwise. Improper recording
of transactions will lead to the mismatch in the debit side and in the credit side.
To avoid these mishaps, the bank provides a separate department whose
function is to check the mistakes in passing vouchers or wrong entries or fraud
or forgery. This department is called as Accounts Department.
Besides the above, the Bank has to prepare some internal statements as well as
some statutory statements which are to be submitted to the central bank.
Accounts Department prepares these statements also. The department has to
submit some statements to the Head Office, which is also consolidated by the
Head Office late on.
The tasks of the Accounts Department of NCCBL Halishahar Branch may be
seen in two different angles:
� Daily Tasks.� Periodical Tasks.
3.19 DAILY TASKS:
The routine daily tasks of the Accounts Departments are as follows---
o Recording the daily transactions in the cashbook.
o Recording the daily transactions in general and subsidiary ledgers.
o Preparing the daily position of the branch comprising of deposit and cash.
o Preparing the daily Statement of Affairs showing all the assets and liability
of the branch as per General Ledger and Subsidiary Ledger separately.
o Making payment of all the expenses of the Branch.
o Recording inter branch fund transfer and providing accounting treatment
in this regard.
50
![Page 51: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/51.jpg)
Where Credit & Commerce Integrates
o Checking whether all the vouchers are correctly passed to ensure the
conformity with the ‘Activity Report’; if otherwise making it correct by
calling the respective official to rectify the voucher.
o Recording of the vouchers in the Voucher Register.
o Packing of the correct vouchers according to the debit voucher and the
credit voucher.
3.20 PERIODICAL TASKS:
The routine periodical tasks performed by the department are as follows:
o Preparing the monthly salary statements for the employees.
o Publishing the basic data of the branch.
o Preparing the weekly position for the branch which is sent to the Head
Office to maintain Cash Reserve Requirement (C.R.R).
o Preparing the monthly position for the branch which is sent to the Head
Office to maintain Statutory Liquidity Requirement (C.R.R).
o Preparing the weekly position for the branch comprising of the break up of
sector-wise deposit, credit etc.
51
![Page 52: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/52.jpg)
Where Credit & Commerce Integrates
o Preparing the weekly position for the branch comprising of the
denomination wise statement of cash in tills.
o Preparing the quarterly statements (SBS-2 and SBS-3) where SBS-2
shows “classification of deposits excluding inter bank deposits, deposits
under wage earner’s scheme and withdrawals from deposits accounts”
and SBS-3 shows “classification of advances (excluding inter bank) and
classification of bills purchased and discounted” during the quarter.
o Preparing the budget for the branch by fixing the target regarding profit
and deposit so as to take necessary steps to generate and mobilize
deposit.
o Preparing an ‘Extract’ which is a summary of all the transactions of the
Head Office account with the branch to reconcile all the transaction held
among the accounts of all the branches.
3.21Accounts & Loans Number:
Type of Account Number of Account
Current Accounts 524
Saving Accounts 3345
Short Team Deposits 65
Special Saving Scheme 1486
Team Deposit 1086
Sub Total (Deposit) 6506
Advance-Cash Credit 8
Advance- Festival 5
Advance- Overdrafts 73
52
![Page 53: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/53.jpg)
Where Credit & Commerce Integrates
House Renovation Loan Scheme 1
Lease Finance Scheme 1
Loan Against Trust Receipts 23
NCCBL Car Loan Scheme 1
Payment Against Document 5
Personal Loan Scheme 5
Short Term Loan (STL) 2
Small Business Loan Scheme 16
SP. House Building Loan 8
Staff Loans 9
Transport Loan 1
Sub Total (Loans): 168
Ground Total: 6664
Growth in Deposits:
When the income of the people surpasses consumption expenditure then they
can save the surplus amount. By collecting the surplus income as deposit bank
assist in capital formation, which boasts the investment of a country. In this
report a study has been conducted on the deposit of NCCBL, Halishahar Branch
that has been shown by the following figure:
Figure in crore
Year 2007 2008 2009 2010
Deposit 20.39 35.29 54.50 76.56
53
![Page 54: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/54.jpg)
Where Credit & Commerce Integrates
Statement of Affairs of NCCBL, Halishahar Br.
Comment: It appears from the above graph that deposit volume of Halishahar
branch has increased from 20.39 to 76.56 crore during the year 2007 to 2010.
The volume of deposit gradually increased. It can be inferred from the upward
trend of deposit curve is that a positive conception has been grown in the mind
of people (depositors) regarding the services offered by NCCBL, Halishahar
Branch.
Table showing Deposit Mix-2010
Types of Deposit Percent
Current Deposit 4.61%
Savings Deposit 10.56%
Term Deposit 70.68%
Short Term Deposit 8.40%
Special Savings Scheme 5.75%
Total 100%
54
![Page 55: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/55.jpg)
Where Credit & Commerce Integrates
Source: Annual Report 2010
3.22 SWOT ANALYSIS:
To survive in the competitive markets every organization should prepares SWOT
(strength, Weakness, Opportunity and Threat) analysis. From SWOT analysis an
organization can forecast about the problems and prospects and can take
corrective measures to cope up with the new environment. From the SWOT
analysis we can figure out the ongoing scenario of the NCCBL. That is by doing
the SWOT analysis; it is possible to find out the strength, weakness,
opportunities and threats of NCCBL and find out the corrective measures
comparing with other banks. Two factors are emphasizing in this SWOT
analysis. These factors are internal factors and external factors.
55
![Page 56: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/56.jpg)
Where Credit & Commerce Integrates
The internal factors are:
1. Finance
2. Product and Service
3. Management
4. Control and Communication
5. Technology
The external factors are:
1. Economy
2. Market and Competition
3. Social Communication
4. Technology
5. Branches & Location
Internal Factors Strengths WeaknessFinance Easy availability of funds
from corporate branch for financing trade
Very good profit margin achieved by the last few years
Good turnover
Deposit is short as compared to loan and advances
56
![Page 57: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/57.jpg)
Where Credit & Commerce Integrates
Product & Service
Efficient in trade service & presses flexible
Competitive interest rate and smooth service
Bank quickly expanding its business all over the country
Online banking service
Branches has no authority in granting advances without the prior approval from head office
Very few products are available for general customer/narrow product line
Management Efficient & experienced management team
Directors of the bank are not over ruling the decisions made by the management team
Narrow organization structured
Lack of accountability Only few employees
possess in-depth competencies
Control & Communication
Low record of defaulters as the advances are made after close scrutiny and proper collateral is obtained
Regular audit from Head Office & Bangladesh Bank
Maintain KYC (Know Your Customer)
Maintain informal communication
Technology Uses SWIFT Computerized Banking ATM technology Foreign remittance facility
through internet Communication facility
through e-mail & internet
Traditional banking system is followed
External Factors Opportunities ThreatsEconomy A strong financial
source and ample resources to grow the resources
Rapid growth of small & medium enterprises
Our economy now passing recession, this also affects the bank
Commercial activities are not increases as expected
Market & Competition It has now global market reputation
NCCBL offers many popular schemes to the
Emergences of more new commercial banks and their branches
Other banks have
57
![Page 58: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/58.jpg)
Where Credit & Commerce Integrates
people and through these schemes NCCBL can raise its deposit promptly
competitive standing in terms of creating new products and services
Social Communication Better social relationship with clients, not only priority customer but also others
Less media focus (Advertise on TV or Dailies)
Technology NCCBL provides credit card facility to the customer
ATM service enhance the customer service
Branches & Location Centre of business area
58
![Page 59: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/59.jpg)
Where Credit & Commerce Integrates
4.1 Findings :
After this part (General Banking), I think this is the most vital part for every bank
in Bangladesh or any other country. NCC Bank Limited is a private sector bank.
This is most probably consumer base bank. Mr. Abu Sayeed Md. Sala Uddin
( Officer) doing their duty very care fully and helps me a lot together practical
knowledge but in this sector (General Banking & Accounts Department).
The finding of my study conducted in the NCC Bank Ltd. Halishahar Branch,
Chittagong are mentioned as under---
Chapter - 4: Findings, Recommendations and Conclusion
59
![Page 60: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/60.jpg)
Where Credit & Commerce Integrates
Real banking operation NCCBL, Halishahar Branch is in satisfactory level.
The function that is performing by this branch is very well and systematic.
The customer servicing system and process is also very good. The
customers are highly satisfied with their providing services.
There is no doubt about capabilities of their employees.
There is very few number of ATM booth in Chittagong as well as in
Bangladesh.
The link sometimes causes the great problem. When the link is down that
time they do not give any kind of service which is related with on-line
service
Loan facilities of import business is more than export business.
The formalities of getting the ATM card are very lengthy process.
Service Charge is also very high though they give the better quality
service. So the client feel hesitated to transaction with this bank.
4.2 Recommendations:
With a view to ensure exciting services and opening up the new window of
progression as well as uplift, we should like to present the NCC Bank Ltd
Halishahar Branch, Chittagong with several recommendations like:
60
![Page 61: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/61.jpg)
Where Credit & Commerce Integrates
The organization should increase the no of ATM booth.
Although income from import business is more than export business, the
bank should look forward in getting more export business, as the
government has recently increased import duty, which may slow down
imports and the governments’ new policy seems to be more favourable for
export.
Formalities in getting ATM card should be simple.
They should reduce the rate of service charge, statement inquiry charge,
and identification certificate charge.
A separate Marketing Department is needed to capture the client market.
More persons are needed for reducing busyness.
Motivating employee with special bonus and tour to foreign country.
In our country most of the people are Islamic minded. So it needs to
increase the Islamic Branches and should increase successful
advertisement of Islamic Banking Section of NCCBL.
Launching one stop service cell.
These initiatives will ensure healthy sales volume as well as well progression for
NCC Bank Ltd. Halishahar Branch, Chittagong and a new door of possibility will
open up.
4.3 Conclusion:
Performance analysis of a bank is not so sufficient to measure and express
perfectly within this short time of my internship period. But it is a great
opportunity for me to get used to with the operational environment of commercial
61
![Page 62: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/62.jpg)
Where Credit & Commerce Integrates
banking of NCC Bank. I have tried by soul to incorporate the necessary relevant
information in my report.
NCC bank Ltd. Halishahar branch has been established with this objective of
providing efficient and innovative banking service to the people of all sections of
our country. The bank is committed to contribute as much as possible within its
limitations for the economic growth and for ensuring locative value of its
available resources.
NCC Bank Limited as one of the leading bank of the country has successfully
implemented Flex cube, a leading banking solution of the world, with the help of
its Information Technology Division. The division is now well equipped to provide
any sort of support regarding the solution of their own. They also have
successfully accommodated reports for Central Bank and Internal Management
into their system.
I hope that the bank will complete with the first class bank of Bangladesh very
soon.
4.4 BIBLIOGRAPHY
62
![Page 63: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/63.jpg)
Where Credit & Commerce Integrates
1. Naresh K. Malhotra” Marketing Research – An Applied Operation”,
Pearson Education, Singapore, 4th Edition, PP (644-652)
2. Annual Report of NCC Bank Limited.
3. Library of IIUC.
4. Brochures or Booklet of NCC Bank Limited.
5. Term and Condition published by NCC Bank Limited.
6. www.nccbankltd.com
7. www.google.com
The End
63
![Page 64: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/64.jpg)
Where Credit & Commerce Integrates
64
![Page 65: 4 Kamal Report](https://reader034.fdocuments.net/reader034/viewer/2022052504/553676704a7959e81d8b49e9/html5/thumbnails/65.jpg)
Where Credit & Commerce Integrates
65