Overall Banking Operations

Department of ManagementMBA; Internship repot University of Rajshahi

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Internship Report on

Overall banking operations; A practical study on JBL, Kadirgonj branch, Rajshahi

Submitted to the Department of Management of Rajshahi University in partial fulfillment of requirement for the award of the MBA degree

Under the supervision of

Prof. Dr. ANM Jahangir KabirDepartment of Management

University of RajshahiRajshahi- 6205

ByMd. Rokonuzzaman

Exam Roll No: 04107262MBA in ManagementSession: 2003-2004

University of RajshahiRajshahi- 6205

April 20, 2010


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Chapter objectives

To be acquainted with the Background of JBL.

To know about the Role and Function of JBL as a Commercial Bank.

To be acquainted with different Branches of JBL at Rajshahi.

To be acquainted with the Background of JBL, Kadirgonj Branch; Rajshahi.


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Theoretical discussion

Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000 million (approx. US$ 289.85 million), paid up capital of Tk. 5000.00 million, reserve of Tk.8202.00 million and retained surplus Tk. 2737.00 million. The Bank has a total asset of Tk. 282423.00 million as on 30th November 2009. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15th November, 2007 the bank has been corporatised and renamed as Janata Bank Limited.

Janata Bank Limited operates through 851 branches including 5 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world.The Bank employs more than 13(Thirteen) thousand persons.The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners. The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors are representatives from both public and public sectors.The Bank is headed by the Chief Executive Officer & Managing Director, who is a reputed Banker.The corporate head office is located at Dhaka with 10 (ten) Divisions comprizing of 37 (thirty seven) Departments.

Purposes of Janata Bank as a Commercial Bank

Janata Bank limited is a prominent financial institution that aims to meet the following purposes….

Making profitThe 1st and foremost purpose of Janata Bank is to attain profit generally through collecting deposits and lending this money to earn interest income or by making investment.Providing service and relation developmentThis bank increases the volume of financial transaction through the development of relation with the clients.Increasing flow of moneyJanata Bank in replace of currency uses different medium as cheque, bank draft, pay order, latter of credit when doing transaction. Thus it increases the actual flow of currency.Collecting more deposit and money lendingAs a commercial bank Janata Bank aims to collect as much as possible money from the clients through different type of deposit.

Figure- 01: District wise branches of Janata Bank

Janata Bank however serves the following social purposes…….

Creating savings: Janata Bank offers different kinds of Savings Accounts and thus simulates the people to make savings.

Formation of capital: The accumulation of savings enables Janata Bank to form capital.

Ensuring safety: This bank has another purpose to ensure the safety of its client’s depository money.

Investment and Industrialization Janata Bank through short-term, intermediate-term and long-term investment simulates the investment and industrialization in the country.

Employment facility: Besides earning profit Janata Bank offers employment facility to the community people and thus helps increase income.


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Functions of Janata Bank as a commercial bank

Figure- 02: Function of Janata Bank In briefJanata Bank in Rajshahi

Table-01: No. of Branches under Rajshahi Division

Office Corp. Branch

Divisional Office 01

Rajshahi (Area Office) 01 01 27

Chanpai Nawabganj (Regional Office)

01 09

Natore (Regional Office) 01 22

Naogaon (Regional Office) 01 24

Rangpur (Area Office) 01 01 20

Pabna (Area Office) 01 01 16Kurigram (Reginal Office) 01 12Bogra (Area Office) 01 01 20

Serajganj (Regional Office) 01 23

Gaibandha (Reginal Office) 01 08

Dinajpur (Area Office) 01 01 14

Thakurgaon (Reginal Office) 01 11

Total : 13 05 211

Grand Total : 224

Divisional Office, Rajshahi Rajshahi Corporate BranchKadirgonj PO : GhoramaraP.S.: Boalia Dist.: Rajshahi Post Code: 6100 Tele : 775637

Func

tion

s of

Jan

ata

Ban

kCollecting deposits; Lending loan; Honouring cheques; Creation of medium of exchange; Discounting bills; Money transfer etc.

Creation of savings and formation of capital, Helps export and import business, Investment in development sectors, HR development etc.

General functions

Development functions

Representative functions

Transaction of foreign currencies; Information sharing consulting and others service functions

Receive and payment as the representative of clients; Selling of shares and securities; Work as the “oci” etc.

Service functions


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Janata Bank Kadirgonj Branch; Rajshahi

JBL at Kadirgonj Branch in Rajshahi was established in December 12, 1980 to meet the increasing demand of banking activities in Rajshahi divisional area. The 1st manager to this branch was Mr. Anowarul Hoque (The SO of the bank).

However in November 11; 2007 Janata Bank was renamed as Janata Bank Limited. At this branch with new name the 1st

manager was Mr. Md. Soleman Ali Pramanic (The PO of the bank).

Organizational Structure

Figure-3: Organogram of JBL, Kadirgonj Branch; Rajshahi

It should be mentioned since JBL was established in December 12; 1980 at Kadirgonj in Rajshahi, it is increasing its areas ofoperations day by day and getting vital concerns of people in the sector of financial and commercial.

Executive officer

Assistant executive officer

Senior executive officer



Assistant executive

officer

Officer Officer

Officer staffs

Peon


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Chapter objectives

To know about Data and Information.

To be acquainted with various Sources of Data and Information.

To know about different Techniques of Data collection.

COLLECTION OF DATA


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Introduction

Data and Information constitute the foundation of composing and interpreting the reports of any types and on anything. When gathering data we should consider many kinds of sources and different methodologies to collect these.

However to get a clear concept about data and information is and important prior study of composing and interpreting reports of any type.

Meaning of Data

Data are insightful facts and events that provide the bases of decision making. They are collected from the sources that are not yet used by otherelase.

Meaning of Information

Information is processed data. They are facts and events that are used by others and can be found available.

Methodologies used in data collection

Every report should be data based. As a part of the MBA program, in the internship report available data and information have been presented. To ensure the accurate data based report a numbers of methodologies have been used to collect the required data and information.

However before we know the methodologies let know the classification of data and wherefrom the data and information are collected.

Figure-4: Classification of data

Methodologies used to collect primary data

The data that are collected directly and that are still not used by other person or authority are called primary data. The methodologies are as follows……….

Observation methodObservation method is the act of watching something or somebody carefully for a period of time especially, to learn something. To collect data whatever required preparing the report a comprehensive observation to management and to other activities of the bank is made.

Interview methodInterview method is a formal meeting at which somebody is asked questions to see if they are suitable for a particular job. To collect data, the face to face meeting with the employees of the bank (JB, Kadirgonj Branch) is made.

Questionnaire methodQuestionnaire is a formulated series of questions, especially for statistical analysis. To collect the data, a set of questionnaire is served to the employees of Janata Bank, Kadirgonj Branch, Rajshahi.

Colleton of secondary dataSecondary data means data that are already available. To obtain the secondary data a number of sources are used that are as follows……

Classification of Data

Secondary DataPrimary Data


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Various publication of Janata Bank limited.Technical and trade journals.Books, newspapers and magazines.Financial reports and income statement of JBCollection of information from internet.The documents and papers kept in the bank

ConclusionI however tried to collect the data and information with the help of a comprehensive insight to the overall banking operations of Janata Bank limited Kadirgonj Branch, Rajshahi. To ensure the reliability and accuracy of the data and information the help of the branch’s employees serve as the primary sources of data and the statistical reports and the documents of businessoperations of the branch served as the secondary sources of data and information.


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Chapter objectives

To know how an Account in Bank can be opened.

To be acquainted with different types of Bank Account.

To know about Cash Management at Branch level.

To know about the daily Accounting process of Bank at branch level.

To know about the trends of deposits at Kadirgonj Branch; Rajshahi.

To know about different services provided by JBL, Kadirgonj Branch; Rajshahi.

GENERAL BANKING


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Introduction

General Banking functions are the common and frequent function of the commercial banks. It serves as the section of

banking from which the commercial bank collects the deposits to form funds for lending loan and the bank yields income of

great extent by doing these functions.

However as a Commercial Bank Janata Bank Limited, Kadirgonj Branch, Rajshahi does the General Banking functions in

the following manner………..

Opening an account at Janata Bank

The depositors served as the basic source of deposit that leads to form the funds to lend loans to others. A transaction with a

depositor is launched with the opening of account in the bank. I was informed that various types of Bank Accounts are

opened in the bank, that is to say, C.D A/cs, S.B Deposit A/cs, F.D A/cs, D.P.S A/cs, S.T.D A/cs, Call deposit and Sundry

deposit Accounts.

I was trained as to how a Current Deposit (C.D) Account is usually opened. The procedure relating to C. D. account is

summarized below.

Person intending to open a Bank Account shall apply in a prescribed form, duly filled in.

He will put at least three specimen signatures in the signature card supplied by the bank and given two passport

size photograph.

Application form and signature card shall be dully verified by a competent officer.

Bank officer shall carefully check specimen signature of the client and verify the genuine of the introducer.

After these formalities, an account number is posted against the application and hence he or she becomes a holder

of a Bank Account with the bank.

Usually the client is required to deposit at least Tk. 100 in saving and Tk.1000 in Current Account.

The Banker therefore provides the customer with a pay in slip book, a chequebook and a passbook.

Various types of Account holder need documents and maintain rules relating to open Bank Account

Owner of personal A/c:

If any person opens account in his own name and maintain it, he will be termed as the owner of personal A/c. He

has to maintain the bank A/c. Nobody for him can maintain the A/c. The necessary documents require opening personal A/c,

which is discussed above.

Owner of Joint A/c:

When two or more persons open an account jointly, it is called a joint A/c and such account holders are termed as

joint A/c holder. While maintaining, the following rules and regulations are followed:

The joint account holders or any one of them authorized to operate the A/c may open either a joint account.

The joint account holders are equally liable for repayment of debt taken from the bank.

If after the death of a owner, if at least two of them are alive, then the money is withdrawn from the A/c through

cheque and new A/c is opened for the alive persons and the money is deposited to the A/c.

According to the rules of our country is case of joint A/c by husband and wife, the husband is considered as the

owner of that A/c.

Joint Stock Company:

While opening an account in the name of a company, the Banker must satisfy himself about the following:

The name of the company, the shareholders name and addresses.


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Whether the company is registered or not.

The following document must be collected:

The signature of the shareholders in the application form.

A document containing the shares of shareholders, their responsibilities and duties.

Naming the person or persons who are authorized to operate the bank A/c on behalf of the

company.

If there is any change among the shareholders, it must be informed to the bank.

All the shareholders are equally liable for the repayment debt taken from the bank.

Public Limited Company:

While opening an account in the name of public limited company the Banker should take the following particulars:

The application for opening an account

Naming the person who is authorized by the managing director or managing committee to operate the bank

A/c.

Specimen signature of the customer.

Certified copy of constitution and memorandum of the company

List of directors and their signature certified by chairman

Scrutiny the financial condition, nature of business of the company

The company is liable for the repayment of debt taken from the bank.

Non-trading Organization:

Clubs, societies, charitable and religious institutions not engaged in trading activities can open their accounts in the bank.

According to the constitution of this institution one or more employee authorized to operate the bank A/c can operate the

A/c. If the institutions are not registered, Bank Account cannot be opened.

Special types of Account holder:

A contractual relationship is created between the Banker and customer by opening an account. Basically a person

whose age is 18 years or more can be competent to open an account with the bank. But there is some special types of account

holder specified below:

Minor: According to the law of Bangladesh, a person who has not competed 18 years of age is a minor.

A minor is not capable of entering into a valid contract. A minor cannot open any account or operates it until he

completes 21 years. The bank records the date of birth of the minor while opening an account. A Banker should be

very careful in dealing with a minor. If an overdraft or advance is granted to a minor even by mistake or

unintentionally, the Banker has no legal remedy to recover the amount from the minor.

Married women: A married woman is competent to enter into a valid contract. The Banker may therefore open an

account in the name of a married woman. In case of a debt taken by the married woman her husband shall not be

liable. But if the wife works as an agent of his husband, then the husband has to be liable for his wife’s debt. While

granting loan to a married woman the Banker should therefore examine her owns assets and ensures that the assets are

sufficient to cover the amount of loan.


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Illiterate person: Illiterate person cannot sign their names and hence the Banker takes their thumb impression as a

substitute for signature and also a copy of their recent photograph. An approved witness should attest the application

form and the photograph.

Blind person: A blind person can open account and the procedure would be the same as illiterate persons. In both

cases the terms and conditions of opening account should have to be read infant of them and if they agree with it only

them the account can be opened.

Deaf and Dumb: Deaf and Dumb can open account but the respective Banker should have to become careful about

the background and character of the person.

Mad and Lunatic: Mad and Lunatic person cannot open a Bank Account.

Closing of Bank Account:

The relationship between a Banker and his customer is a contractual one and may be terminated by either of them

by giving notice of his intention to the other person. The rights and obligation of a Banker in this regard is as follows:

If a customer directs the Banker to close his account

On receipt of the notice of the death of a customer

If a Banker receives a notice regarding the insanity of his customer

On receipt of a Garnishee order from the court

Fixed account is closed automatically after the specified date.

Steps of Cash Management at Branch Level:

Cash Receipt:

The cash receipts procedure, as I found, is summarized below:

Pay-in-slip or credit voucher are given to the cash counter for depositing cash.

Cash deposit section checks the title if account, its number, amount in words and figures in the pay-in-slip or

credit voucher.

Cash receiving officer after receiving the cash giving records/denomination of the currency on the back of the

voucher shall enter the particulars of the voucher in the cash receiving book under progressive serial number &

puts his signature putting the date stamp both on counter foil & pay-in-slip voucher. Then he will pass it on to the

officer- in-charge of cash section for his signature along with the register

The officer will then detach pay-in-slip from the counter foil and return it to the receiving officer along with the

register.

The officer sends the pay-in-slip/ credit voucher to the deposit section in case of pay-in-slips and credit vouchers

to the respective section to which it relates.

Cahier and cash-in-charge puts signature on the book at time of closing cash.

Specimen to Scroll book to cash receipts

Figure -5: Specimen to Scroll Book

Janata Bank limited Kadirgonj Branch; Rajshshi

Scroll book

SL no. Account no. Account type

Mailing Charge

Tele charge Commission Bill’s Commissi-on

Amount (tk)


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Cash Payment:

Generally cheques, D.D, T.T, M.T, pay order and cash deposit voucher etc. are received from customer and

institutions. The formalities are given below:

The instrument is checked for any discrepancy, posting and cancellation

Specimen signature of cancellation officer should be available

Cash is counted and the denomination of notes are written on the reverse of the instrument

Cash is paid to the bearer of the instrument

Particulars of the instruments are entered in paying cash book

Paid instruments are kept with the paying officer

Token issue:

I was assigned to issue token. However I issued token in the following manner:

At the very out set, I examined the validity of the cheque. In this connection, attention was given of the cheque

following points: -

Date of issue of cheque (a cheque is valid for six months only)

Signature of the account holder (rubbing, overwriting etc.)

Amount of cheque (the similarities between the words and figures of the cheque)

Signature on the reverse page

After that the amount, token number, account number etc. were entered in the daily transaction register. Usually

called day book

Then, the token was issued to the bearer of the cheque

Token number was thereafter taken down on the reverse page of the cheque

After that the cheque was passed on to the other section for other necessary formalities.

Specimen to token book for cash payment

Figure-6: Specimen to token book

It may be mentioned that I had to face acute customer rush in this branch, since this is one of the busiest branch of the town,

already mentioned earlier. Everybody wanted to get the work done quickly. Any way, I tried my best to serve the customer

as promptly as possible.

Posting and Cancellation of Cheque:

At the time of posting of cheques, the cheque is examined carefully. Attention on the following more aspects is given:

Whether the account had desired amount of money or not.

Prefectures of serial number of the cheques

After careful examination, the drawing amount of cheque was entered in the ledger.

Janata Bank limited Kadirgonj Branch; Rajshshi

Token Book

SL no. Cheque no Account no. Amount (tk)


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Specimen to SB/ CD ledger book

Figure- 7: specimen to SB/ CD ledger

For cancellation of cheques, Janata Bank, Kadirgonj Branch, Rajshahi is followed the bellowed steps:

The cancellation officer shall keep the specimen signature card under his personal custody.All specimen signature cards will be kept in serial order.In case of difference of signature, cheques shall not be passed.Officer shall not pass any cheque unless it is posted against the account and initialed by the ledger keeper.The cancellation shall be made waving a red line across the signature of the drawer’s of the cheque. The cancellation shall sign in full using red ink the drawer’s signature.

Cash Balancing:

The entire cash related employees ensure the balancing of cash on daily basis:

All cash register written in words and signed

Checking agreed with each other

Preparing cash position memo

Writing cash Balance book

Checking all registers and signing

Ensuring that Balance is correct.

Preparing cash cum daybook

Specimen to Daily Cash Book

Figure-8: Specimen to daily cash book

Janata Bank Limited Kadirgonj Branch; Rajshahi

Daily cash book

Cash Clearing Transfer Total Code no

Particulars General Ledger

no

Cash Clearing Transfer Total

page no………

Janata Bank LimitedDate of opening Acc: ………

SB/CD Ledger Account no: …Issued cheque

Date From To Initial

Name: ………………………………….. Introducer’s acc. no: …………. Profession: ………………………………Address: …………………………………….

Date Particular Cheque no.

Withdraw Deposit Initial Balance Day to submit st

Interest

No. of months

Maturity

Balance C/F


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Checking Cash in hand:

Cash should be checked as per cash balance books.

Counting the loose cash entirely also coin

Petty cash

Prize bond stick

Late paid cash/Scrutiny instrument

Surplus cash if any pass voucher

Cash safe keeping:

All the custodians of cash must ensure overnight safe keeping of cash at branch level. Counted cash to keep under following

precaution:

Iron safe condition

Strong room as per specification

Lodgment of keys

Maintain safe limit

Excess over limit disposal

Cash Remittance:

Only cash feeding branch is entitled to carry the cash for remittance purpose. Precautions are as follows:

Cash carrying team with armed guards

Transport mode, Conventional / non-Conventional

Cash transit limit

Cash movement register

Cheque honored by a Banker:

Figure-9: Payment procedure against cheque

Cheque Dishonored by a Banker:

If a cheque is dishonored the Banker return it to the depositor. The statutory duty of a bank is to honor his customer’s but it is dishonored in the following circumstances:

If the amount mentioned in the cheque is greater than that of deposit.

If the cheque is past dated or a stole cheque.

If the cheque contains an apparent material alteration, which is not properly mentioned by the drawer.

If the signature of the drawer is a forged one or does not tally with his specimen signature.

On receipts of reliable information about the death of the customer.

Placing Cheque at counter

Issuing token Entry made in ledger book

Verify the initial of client

Entry in tally bookCash counter entry and payment


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If a debtor commits an act of insolvency as defined in the insolvency law.

If the cheque is not submitted during the banking hour.

If the Banker comes to know about the defective title of the party.

Collection of Deposit Section:

Janata Bank, Kadirgonj Branch, Rajshahi collects deposits from surplus unit in the following forms:

Time Deposits:

Fixed Deposits Receipt (FDR)

Short Term Deposits (STD)

Deposit Pension Scheme (DPS)

JBSPS

Savings Bank Deposits (SB)

b) Demand Deposit

Current Deposits

Sundry Deposit

Sundry Deposits

Margin on Letters of Credit

Margin on Letters of Guarantee

Employees Contributory Provident Fund

Employees General Provident Fund

Janata Bank Employees Pension Fund

Janata Bank Employees Pension and Death Cum-Retirement Benefit Fund.

Table-01: Numbers of different deposits

Demand Deposit-

Current Account: Current Account is the most suitable for public, individuals, traders, merchants, importer and exporters,

mill and factory owners etc.

For opening of a Current Account minimum deposit of Tk. 1000 is required along with introductory reference.

No interest is given is the Current Account. One can enjoy maximum flexibility and convenience when he/she opens Current

Account with Janata Bank Ltd.

General Characteristics:

CD accounts are unproductive in nature as banks loadable fund is concerned. Sufficient fund has to be kept in

liquid form, as Current Deposits are demand liability.

Thus huge portion of this fund become non-performing. For this reason banks do not pay any interest to CD

Account holders.

There is no restriction on the number and the amount of withdrawals from a Current Account.


Numbers of different depositsSL Types of accounts Number of accounts Percentage (%)01 Current Deposits 219 10.3602 Savings Bank Accounts 1738 82.2803 Fixed deposit receipts 30 1.4204 Deposit pension scheme 05 0.2405 Short term deposit 08 0.3606 FRD 18 0.8407 JBSPS 78 3.6908 Others 24 1.13

Total numbers of deposits 2112 100%


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Service charge and incidental charges are recovered from the depositors since the bank make payments and collect

the bills, drafts, cheques, for any number of times daily.

Businessmen and Companies are the main customers of this product.

The Banks through Current Accounts grant the loans and advances.

In practice of Janata Bank Ltd, a minimum balance of Tk. 1000 has to be maintained.

Saving account: The saving account is primarily for small-scale savers The main objective of this accent promotion of

thrift. Hence there is restriction on with drawn in a month.


As per Bangladesh Bank instruction 90% of saving deposits are treated as time liability and 10% of it as demand

liability.

Inte4rest is paid on this account. Janata Bank Ltd offers a reasonable rate of interest for Saving A/C.

Generally, Banks require a 7-day prior notice if the total amount of one or more withdrawals on any date exceeds

25% of the balance of the account.

In practice there is no restriction about drawing money from Savings Account. Any time holders of such account

any draw money of any amount without prior notice.

The number of withdrawals in a week is limited. Only two withdrawals are permitted per week. If there are more

than two withdrawals in a week, no interest will be paid on the rest amount for that month.

Generally householders, individuals and other small-scale savers are the clients of this account.

Minimum Balance of Tk. 500 is to be maintained.

Interest will be counted on the minimum balance from the date 1-6 of a month.

No service charge as it is an interest bearing account.

Heavy Withdraws are permitted only against permitted only against prior. Minimum amount of Tk. 500 is required as an

initial deposit. Frequent withdraw is not allowed. The current rate of interest is 6%.


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Deposits

2003 2004 2005 2006 2007 2008 2009

0

100

200

300

400

500

600

700

800

900

Trend of deposits

Graph-1: Trend of deposits

STD account (short Term deposit):

This kind of account is opened normally by various big companies, organizations, Government department etc.

This account is operated like Current Account. The deposits held in STD A/C are payable on short notice for 7 days or 30

days. The interest rate of STD is 4% Different big organizations, companies and other Govt. Departments maintain Short

Term Deposit A/C.


Customers deposit money for a shorter period of time.

STD account can be treated as semi-term deposit.

STD should be kept for at least seven days to get interest.

The interest offered for STD is less than that of savings deposit.

Volume of STD A/C is generally high. In JBL, various big companies, organizations, Government Departments

keep money in STD accounts.

Time Deposit: Deposits are life blood of a commercial Bank. Since commercial bank deals with other people’s money,

without deposits there is no business for the commercial bank. Accepting deposits is one of the main functions of JBL.

Fixed Deposit Receipt:

Fixed deposits are the deposits in which an amount of cash is deposited in Bank for a fixed period specified in advance.

These deposits are time deposits. Normally the money on a fixed deposit is not repayable before the maturity date of a fixed

period. At the time of opening the deposit account, the Banker issues a receipt acknowledging the receipt of money on

deposit account. It is popularly known as FDR.


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Deposit time interest rate (%)

3 (Three)” 7.00%

1(One) Year and above 7.50%

Source: Janata Bank Ltd; Kadirgonj Branch

If any depositor wishes to withdraw his/her money before maturity he/she is allowed to do so. But interest will be given

according to the prescribed rate for that term. This instrument is also accepted as primary security or collateral security

against any advance or loan of the bank.

Table-02: Target vs Achievement( General banking)

Bills and Remittance:

Remittances of funds are one of the most importance aspects off commercial banks in rendering services to its

customers. Among various services rendered by a commercial bank to its customers, remittance facilities are very well

known and popular.

The word remittance means sending of money from one place to another through post and telegraph Bank expands this from

one branch and making arrangement for payment to another branch within the country. In general there are two types of

bank remittance-

Inward Remittance

Out ward Remittance

Bank takes the risk and ensures payment to the beneficiary by charging the customer commission. Janata Bank

Ltd., Kadirgonj Branch gives their customers the opportunity of different kinds to billing and to remit ford from one place to

another.

The instruments which are used to remittance and billing are D.D, T.T, SDR and Pay order.

Demand Draft (DD):

Demand draft is a negotiable instrument issued by a particular branch of a bank containing an order to another

branch of the same bank to pay a fixed sum of money to a purchased by for himself or order on demand.


Target VS Achievement (in lakhs)

Subject head Particulars 2003 2004 2005 2006 2007 2008 2009Deposit Target 490.00 767.00 767.00 465.00 596.00 657.0 869.05

Achieved 676.06 683.12 434.56 541.89 597.25 846.55 428.18Classified loans

Target 0.06 0.19 0.16 0.00 0.32 1.20 0.65Achieved 0.03 0.17 0.00 0.00 0.58 2.73 1.35

Income excpt interest

Target 1.00 0.86 1.10 1.10 2.15 2.15 3.10Achieved 0.67 0.67 0.00 1.73 1.96 4.08 5.17

Remittances Target 0.50 0.10 0.10 0.00 0.06 1.20 4.55Achieved 0.00 0.00 0.00 0.00 0.59 5.33 12.32

Profit Target (-)8.50 (-)3.50 10.00 2.50 1.00 3.80 6.25Achieved -4.20 8.42 1.92 0.86 3.76 5.47 12.10


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This instrument can be purchased by for himself or for beneficiary and can be handed over to the purchaser. The delivery to

the beneficiary bank issues drafts for a nominal commission. The commission depends upon the amount to be transmitted.

Janata Bank charges the commission on D.D minimum charge is Tk. 15.

Procedures for Issuing a DD:

DD application from filled in and money deposited by the customer.

Necessary entries are given to a register name DD OUT- concern (drawn on) branch. A number, which is

taken from this register, is known as “Controlling number”.

An “Account payee only” crossed instrument given.

Telegraphic Transfer (TT):

Telegraphic Transfer is quicker than a transfer of amount by DD. TT is the most rapid and convening but

expensive method. Telephone, Telex, Fax is different mode of TT. If an applicant wants to remit the amount urgently to the

payee is another city or district he/she may request the Banker to send it by TT. The branch generally recovers from the telex

charge in additional to usual service charges.

T.T. issued-Its procedure:

Application by customer along with money given.

In receipt of money a cost memo is given to the customer containing TT serial number. The customer informs this

number to the awaiting party in the other branch.

Tested fax message is prepared, where TT serial no and the name of the concern party to whom the money will be

credited is mentioned.

Activity report is received from the telex department confirming transmission of message.

TT Payable-practice:

After receiving the telex message it is sent for test agree.

TT serial number is scrutinized in the “TT IN- concern branch” register.

Voucher is released in this respect giving accounting treatment as.

H/O (Concern Branch) A/C ………………. Dr.

Customer A/C ……………………………... Cr.

Charges and Commission:

TT 15 percent and minimum Tk. 25 with telex charge Tk. 50 vat on commission and telex charge 15% regarding.

Security Deposit Receipt (SDR):

SDR is one kind of bill which use the government tender. From SDR bank earns a big amount. Janata Bank

Rajshahi Branch gives credit facility against on SDR.


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Pay Order (PO):

Payment order is a written document. This pay order can be enacted on the branch from where it is issued. Several

suppliers, Organizations use this PO. It is issued locally.

The procedure for selling P.O. is as follows:

Purchasing must be an A/C holder of JBL, Rajshahi Branch.

Depositing money with P.O. application form.

Giving necessary entry in the Bills Payable (P.O.) register;

Payee’s name, date, P.O. No. etc.

Preparing the instrument.

After it has been scrutinized & approved by higher authority, the instrument is delivered to customer. Signature of

customer is taken is the counterfoil.

Conclusion

From the aforementioned discussion it become clear that JBL, Kadirgonj Branch; Rajshahi does almost all the operations of

general banking and in the recent years it has been yielding better performance in case of deposit collection and in proving

the general banking services to meet it’s purpose of profit earning and rendering social service.


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Chapter objectives

To know about Loan and Advance.

To know about the types of Loans and Advances.

To know the process of loan handling at Branch level.

To be acquainted with different types of Documents for loan handling.

To know about the Security measures against the Loan

To know about Recovery process of loans.

LOAN & ADVANCE BANKING


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Introduction

Janata Bank is a Nationalized Commercial Bank. The main task of a commercial bank is to collect deposit in a comparative

low rate of interest and to pay loan is a comparative high rate of interest. A bank has to bear deposit cost and by it’s earning

from grating loans. If it fails to bear these costs by it’s earning from granting loan, its business will be closed. In my

internship program, a critical analysis of credit disbursement in presented in this part of the report.

Definition of Loan

Loan means lending money to someone on trust. In another word, lending money from the bank in productive purpose is

called loan.

Objectives of the Loan

The goal of a commercial bank is to earn profit so the objectives of loan of Janata Bank Kadirgonj Branch to earn profit. But

Janata Bank is a Govt. bank. That is why economic development is the main objectives of this bank loan.

Sources of Loanable Fund:

This bank collect deposits from people and various organizations at a certain rate of interest payable to them and lend this

money to people at certain rate of interest, more than the rate of collecting money.

The main source of Banks loanable fund is deposit, International Financial Institutions (such as IDAJFDC) grant and Govt.

grant are the other source of banks loanable fund.

Types of Loan

The Janata Bank Kadirgonj Branch, Rajshahi provides the following types of loan.

Cash Credit

A cash credit is a fluctuation account and is operated in the same way as a Current Account on which an overdraft has been

sanctioned. Under this system the Banker specifies a limit up to which the customer is permitted to borrow against the

security of tangible assets. The interest rate for cash credit is 6.50%. The maturity for cash credit is one year.

Over Draft (OD)

When the bank allows it’s faithful Current Account holders to draw more amount of money that of the individuals deposit is

called overdraft. The OD loan in this branch is amounting Tk. 533247.00 in March 31; 2010.

House Building Loan (Staff)

It is given to the employees of the bank. The house building loan in this branch is amounting Tk. 26238533.75 in March 31;

2010.

Table- 03: Sector wise loans


Sector wise loans; March 31; 2010

SL Sector wise loans Amount (tk) Percentage (%) 01 Rural loans 2133289.00 06.4502 General loans 1271527.00 03.8503 House building loans (employee) 26238533.75 79.3404 PF loans 93398.00 0.2805 Overdraft 533247.00 1.6106 Security overdraft 634698.00 1.9207 Cash credit 2157740.00 6.50

Total loans outstanding 33062432.75 100%


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0

10

20

30

40

50

60

70

80

Sector wise loans

Rural loans General loan EHBL PF loan Overdraft SOD CC

Rural Loan

This type of loan provided by this branch is made under the special investment program. In march 31; 2010 it was amounting

2133289.00 and was 6.45% of total loan outstanding.

General Loan

This Bank also paid general loan that was amounting 1271527.00 in March 31; 2010 and was 3.85% of total loans.

Security overdraft

When the bank allows it’s clients to draw security overdraft. The SOD loan in this branch is amounting Tk. 634698.00 in

March 31; 2010 that was 1.92% of total loan outstanding.

PF Loans

Providing PF loan is one of the important operations of the bank. In March 31; 2010 it was amounting 93398.00 that was

0.28% of total loan outstanding.

Graph-02 : Sector wise loan

Definition of Loan Disbursement

When bank distributes its fund in various ways to various sectors to earn profit, to operate banking function and to give some

interest to deposit holders, then it is called disbursement.

Table- 04: Statement of number of Borrowers


Statement of numbers of borrower; March 31; 2010Serial

noSector Number of borrowers Total Remarks

UC SME SS DF BL01 02 03 04 05 06 07 08 0901 Continuous

loan 19 - - - - 19

02 Demand loan - - - - - -03 Term loan up

to 5 years49 15 12 2 9 87 23

Sub total 68 15 12 2 9 106 2304 Staff loan 75 - - - - 75

Grant total 143 15 12 2 9 181 23


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0

50

100

150

UC

SM

E SS DF BL

Categories

NUmber

No of borrowers

UC SME SS DF BL

Graph- 03: Disbursement of Loans

Judgment of Loan Policy

At the time of lending, bank judges the customers credit worthiness. Bank collects information from various sources for the

security of credit information which is very essential for unsecured loan. Bank can collect information from the following

sources:

The Process of Lending Loans

When lending loan to the client the bank as well as the client has to maintain some formalities which most importantly

includes the preparation and maintenance of certain manner prescribed by the banking act as well as the regulatory

provisions of the state.

Loan Application Form

From the application form bank seeks information about……………………..

Customer business experience

Amount of assets and liabilities

History of business

Name of advance sought.

Period of advance

Source of repayment

Ownership and changes there in.

analysis of financial statement

Analysis of past Transaction mad with the bank

Credit information Bureau Report (CIB Report)

Other bank.

Personal interview


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After collecting information, bank analysis this information and assess as the acceptability of credit of the applicant.

For the secured loan, bank gives priority to the security that has the followings features:

Marketability of the security.

Price stability.

Consistency.

Durability.

Position of the property.

The conditions, which are maintained in the branch for issuing loans, are:

Name and address of the borrowers:

Nature of debt

Amount of debt

Primary deposit

Term of loan

Terms of loan

Margin

Interest rate

Special condition

Necessary Documents

In case of loan the issuance of loan, some documents must be presented to ensure the validity of the client about the contract

he/ she is going to make with the bank.

The bank wants to make sure that we are lending the loan to right person or organization from whom/ which is possible to

recover the amount disbursed.

The instrument which are necessary for issuing debt:

Letter of continuity

Letter of arrangement

Letter of disbursement

Letter of hypothecation.

Statement of monitoring signed by manager

Memorandum of deposit title dead.

Power of attorney in case of failure to repay debt.

Guarantee of owner of property.

A passport size photograph.

Other Documents

Documents common to all sorts of loans and advances are specified below.

Demand Promissory Note: D.P. note is an unconditional written promise made by the borrower to the

Bank to repay the amount of loans / advances at a fixed or determinable future date along with interest at

a stated rate.


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Letter of Arrangement: The borrower acknowledges the Bank’s right to cancel the facility allowed at

any time without assigning any reason and with or without prior notice.

Letter of Continuity: The borrower undertakes to remain liable on the D.P. Note and other loan

documentation even if the liabilities are fully or partially adjusted during the tenure of the credit facility

and even through the account may show credit balance from time to time.

Letter of Revival: the document refers to the law of limitation whereby documents become time barred

after 3 years from the date of execution. The period of limitation within which a sent for recovery of the

overdue loans/ advances to be filed the ordinary period of 3 (Three) years from the date on which the

facility was extended. The limitation period for mortgage is 12 years beginning on the date of the

mortgaged deed The borrower through “Letter of revival” confirms having precluded enforcement of

limitation law, and also confirms to remain liable on Promissory Note and other documents executed

notwithstanding the law.

Legal Documents:

Memorandum and Articles of Association (Limited Company). …

Registered partnership deed (Partnership firm).

Trade License.

Board resolution covering corporate borrowing power and execution of security documents (limited Company).

Resolution of the partners for availing of credit facility and for execution of security documents.

The legal advisor of the banks judges the legal side of immovable security and concludes that whether it is acceptable or not.

Steps of Documentation:

Obtaining of the instruments / documents.

Stamping.

Execution.

Witnessing.

Registration.

Preservation.

Obtaining Documents:

The documents to be obtained depend upon 3 (Three) factors:

Figure-10: Factors to be considered when obtaining documents

Legal status of the

borrower

Type of facility

Nature of security


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Stamping of Documents:

According to the provisions of stamp Act 1899, all documents chargeable with duty shall have to be stamped

adequately and, properly before or at the time of execution. An unstamped and insufficiently stamped document cannot

be admitted in evidence or cannot form the basis of a legal suit.

Types of Stamps are:

Judicial

Non judicial

Adhesive

Embossed

Execution of Documents:

Documents must be executed (signed) by the person (s) concerned competent to do so either in official capacity or

in personal capacity as the case may be. In other words, execution of documents must be done by the borrower authorized

representative.

Security against the loans

When bank lend loan to the person or to the organization it privileges to keep some security measures against the loans it

paid to the respective clients. Thus the bank makes ensure that if the clients fail to repay the loan amount at the due date the

bank will be able to recover the amount.

Types of security can be shown in the following way:

Figure- 11: Types of securities

A Short discussion on the securities against loan

Lien:

Lien is the right of a person is the possession of goods to retain them until debts due to him have been satisfied. Lien can be

classified in two categories.

Particular lien: a particular hen is a right to retain goods in respect of which the debt arises.

General lien: A general hen arises out of the general dealings between two parties and covers any property

that one party may be holding for the other.

Pledge:

A pledge is contract where by an article is deposited with a lender or a promise as security for the repayment of a loan or

performance of a promise. To complete a contract of pledge delivery of goods to the Banker is necessary. That is goods must

be movable.

Security

Personal Security Impersonal Security Collateral Security

Lien Pledge

Hypothecation Mortgage

Charge Actionable Claim


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Hypothecation:

Hypothecation means creating some claim in goods or related documents without transferring their possession to the

ownership related documents is passed to the creditor but the possession. Thus it is a reverse process of pledge.

Mortgage:

Mortgage has been defined in section 58 of Transfer of Property Act 1882. It is the transfer of interest on the

property by way of charging immovable property for the security of loan amount. Therefore, for the purpose of securing loan

amount when an immovable property is charged for transfer interest on the property is known as mortgage.

Classification of Mortgage:

On the basis of transfer of title is the mortgaged property mortgage can be classified as ………………..

Simple/Registered Mortgage and

Equitable Mortgage.

Simple / Registered Mortgage:

In a legal mortgage the legal title to property is transferred in favor of the mortgagee (Bank) by mortgage deed

duly vetted by legal adviser / retainer. The deed is registered is the Registrar / Sub-Registrar’s office. This method is

expensive as it involves registration charge & stamp duty. After adjustment of the loan the title of the property is to be

redeemed.

Equitable Mortgage:

An equitable mortgage is affected by mere delivery of documents of title of property to the mortgagee (Bank). It

does not require registration.

Assignment :

An assignment means a transfer by one person of a right, property or debt (existing or future) to another person.

The person who assigns the right, property or debt is called the assignor. The person to whom the right etc, are assigned is

called the assignee.

Actionable Claims

In banking, the usual subject of assignment is “actionable claims” Actionable claim means acclaim to any debt other than a

debt secured by mortgage of immovable property or hypothecation or pledge of moveable property or to any beneficial

interest in moveable property not in the possession either actual or constructive of the claimant which the civil court

recognized as affording grounds for relief, whether such debt, or beneficial interest be existent accruing, conditional or

contingent. In other words, an actionable claim is an unsecured claim to money which is actionable i.e; for recovery of which

an action may be brought in court.

Valuation of Security:

Valuation of security is very important for the lending Banker. Therefore valuation of security must be done

with……………..


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Proposal Evaluating Project and

About Client

About Project

Evaluating by agent

Branch level evaluation

Legal assessment

Evaluating Collateral

Decision Sanctioning

and Documentation

Disbursing loan

Supervise –of the loan

Recovery of the loan

Usual recover

Legal recover

Head office Level

Branch level

Careful verification of sources,

Nature of procurement,

In respect of quality,

In respect of quantity and

Considering possible risks.

Margin:

Margin is a cushion against any possible shortage. It is a portion of borrower’s contribution. The fixation of margin

depends on the nature and type of security and the financial stability of the customer and also keeping in view the restrictions

imposed by the Bangladesh Bank / Head Office from time to time. In case of goods and produce, reasonable margin should

be retained for covering any shortage due to shrinkage, fluctuation of rate, fall in prices and charging of bank interest.

In case of advance allowed against merchandise imported through bank, the amount of margin fixed should be

deducted from the landed cost of the goods. For allowing advances against goods in trade locally purchased the amount of

margin fixed should be deducted from the invoice value or ex- factory prices, as the case may be.

Process of handling loans:

Figure-12: Loan handling diagram

Witnessing:

The following documents are required to be mandatory attested by at least 2 (Two) witnesses.

Mortgage deed


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Sale deed

Gift deed

Assignment of life insurance policy

Will.

Registration of Documents:

Registration is not applicable for all the documents. In the following few cases registration of documents is

necessary to give legal effect to the instruments.

The assignment of an insurance policy to be registered with the respective insurance company. The mortgage deed

vetted by the legal retainer to be registered with the office of the Sub-Registrar. Fixed and floating charges on the assets of a

limited company to be registered with the Registrar of Joint stock Company.

Preservation of Documents:

Upon completion of all the documentation formalities “ documentation checklist” to be prepared consisting of the

list of documents. The checklist should be examined and signed by an authorized officer. Documents should be kept in safe

custody preferably in the Vault. Separate files to be maintained for each customer. Documents movement register should be

maintained under the supervision and signature of an authorized officer.

In case of loan:

Letter of Disbursement. Letter of Authority (if required)

Letter of Hypothecation (when goods are hypothecated as security).

Insurance Policy (if required).

Any other document as stated in Sanction Advice.

In case of overdraft:

Letter of Continuity.

Letter of Authority (if required)

Letter of Hypothecation (when goods are hypothecated as security)

Insurance Policy (if required).

Any other Document as stated in Sanction Advice.

In case of cash credit:

Letter of Continuity

Letter of Authority (if required)

Letter of Pledge/Hypothecation.


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Insurance Policy under Bank’s Mortgage clause.

Letter of Disbursement incase of renewed warehouse.

Any other Document as stated in Sanction Advice.

Advance against Lien of FDR/ Insurance policy etc:

Vehicle Loan:

Letter of Hypothecation of vehicles (in separate form)

Photocopy of blue book

Photocopy of route permit

Insurance policy under Bank’s mortgage clause

Any other documents stated in Sanction Advice

Legal Mortgage:

Mortgage deed (certified copy)

Registration receipt in original

Chain of documents for title (original if available)

C.S.S.A and R.S parch

Up to date Rent Receipt

Non-encumbrance certificate

Power of Attorney (if asked for)

Legal opinion

Valuation Certificate

Location plan etc. /Site plan etc.

The Strategies of loan Recovery

The Commercial Bank provides loan to different sectors but the Bank should pay extra concern to recover the loan. The following strategies however can be taken for this purpose.

Figure-13: Strategies of loan Recovery

Strategies of loan recovery

Persuasion Task Force Loan rescheduling

Remission interest Taking legal actions


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Persuasion

It is primary step to recover the loan. It however includes………

Communication by manager with the loan taker.

Discussion with loan taker how can render help to him.

Notify the loan taker with a written notice.

Meet the loan taker at the date when he made noticed.

Discussion with the guarantor.

Forming Task force

Task force works as a team in the case of recovering loan. The task force consists of………….

Loan Rescheduling

The application of rescheduling includes the following considerations………………………

When the loan taker uses the loan amount to other purpose(s).

Whether the loan taker is unwilling to repay the loan amount.

Checking the cash flow statement, income statement, financial statement of the loan taker.

After being satisfied abut the loan taker as per the bank’s requirement the bank will take decision of making

rescheduling the loan amount.

Interest Remission

It is another important strategy of loan recovery. The remissions of the interest amount encourage the loan taker to repay the loan amount as he gets the opportunity to repay low amount than he required paying. The remissions are offered to …………..

Loans pertinent to foreign trade

Industrial loans.

General loan sections.

Taking legal Actions

This strategy of loan recovery is germane to suit case against the loan taker. The banks use the notice from the court against the loan taker. The loan taker or the guarantor also forced by the legal authority to surrender the mortgage property to meetthe legal claim by the bank.

Conclusion

As a commercial bank JBL, Kadirgonj Branch; Rajshahi follows all the provisions regarding the loan and advance management of Janata Bank Limited. The branch however does the loan and advance operation to some specific areas and the branch is likely to lend the secured loans.

Chairman : Managing Director

Members : GM of Head Office

Coordinator : GM (Recovery)

Secretary : AGM (Recovery)


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Chapter objectives

To be acquainted with SWOT Analysis.

To know about the Trends of growth in different section of operation of JBL, Kadirgonj Branch; Rajshahi.

To know about the Prospects of this Branch.

EVALUATION OF PERFORMANCE


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Introduction

Performance evaluation is the study of an institution that shows the conducting activities and various comparisons toward thefunction or different components of the institution. To compare with different functions, this process try to justify the real condition, it target and achievement. Finally, performance evaluation makes a recommendation and conclusion on the basis of different indicators. Manager must understand the environment and markets within which business operates. The main elements of environment are markets, institutions, interest rates and taxes. Markets where capital is raised, securities are traded and stock price is established.

Table- 05: Financial Statement

SWOT ANALYSIS:

At the corporate level, the strategic Management process of an organization involves the environmental. This environmental

scanning is done both on the internal environment: Strength and weaknesses and external environment: opportunities and

threats of the organization.

In internal environment strengths are those factor that influence the organization to do better are weaknesses are those factors

that lack the organization form its optimum performance. On the other hand external environment at analysis shows the

opportunities or scope of development and external coming there at for the business.

After doing my report on the service of the JBL. I have found both better performance in some sectors of the of the bank and

also weak services as well that occur lacking to do better. There are also some eternal factors which height has business.

SWOT Stands For:

Strengths


Financial statement (condensed form); March 31; 2010

Liabilities Amount (tk) Assets Amount (tk)Current Deposit 21479977.84 Cash 1245845.73Sundry deposit 3029734.14 Rural loans 2133289.00Savings bang account 70019864.23 General loans 12171527.00Short term deposit 2622668.70 House building loans 26238533.75Fixed deposit receipt 3289683.00 PF loans 93398.00Deposit pension scheme 941556.00 Over draft 533247.00JBSPS 2503569.00 Security over draft 634698.00Education deposit scheme 318237.00 Cash credit 2157740.00Medical deposit scheme 140797.00 Furniture and fixtures 2844284.00Issued pay order 138582.81 Stationary 82097.76Issued pay slip 9049.00 Stamps 3900.00DD payable 90053.00 Suspense accounts 2082587.54MT payable 5978.00 Advance 1000.00Intt. Suspense account 38674.00 Prize bonds 2000.00Bills accepted for receipt 288039.00 Sundry assets 743432.11Income section 1631050.00 Outstanding bills 288039.00

CIBTA 65642242.11Expense section 64949.75

Grand total 106647452.72 Grand total 106647452.72


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Weaknesses

Opportunities

Threats

Objective of SWOT analysis:

To asses overall strong competitive position.

To decide whether to continue current strategy or not.

To determine possible course of actions.

Development of functional strategy.

Strength:

Janata Bank is a modern public Bank. It has more capacity to adopt new technology when the environment will be

changed. This Rajshahi branch has various types of strength elements. Such kind of strength are representing below:

The Image/Goodwill of this branch is very good.

The market share of this branch is satisfactory than others Public Bank in Rajshahi.

The product portfolio or scheme of this branch is exception than other private Bank of this district such as National Bank, MBL Bank and IBBL.

The branch has good communication with their client. For this the client of this branch is too much loyal upon this branch.

The client is favorable regarding Foreign Exchange service of this branch.

The branch has huge amount of deposit and market potentiality.

This branch has skilled and experienced personnel whom are properly handle clients need in right time and right place.

The working place of this branch is too much upgraded so the employee feels interest to work here and have enough security for the personnel and client.

Weakness:

A weakness is a limitation or deficiency in resources, Skills and capabilities that seriously impedes effective

performance.

When I study in Kadirgonj Branch some problem surface to me those internal problems mention in the below:

Corporate head office provide various types of product or scheme but Rajshahi branch cannot provide all

those scheme to the client still now such as Contributory Savings Scheme (CSS), Special Deposit

Scheme (SDS), Monthly Benefit Deposit Scheme (MBDS) and Education Savings Scheme (ESS).

The credit section of head office sanction various types of credit but Rajshahi branch con not able to

provide those entire credit scheme to the client.

Opportunity:

In my study on Kadirgonj Branch some opportunity surface to me. Those opportunities of Janata Bank are given below:

Rajshahi is very old town. It is a big region in North Bengal. There is a lot of cultivating land here. Peoples of

Rajshahi cultivate different kinds of agricultural product for this reason various types of agro based industry set up in

Rajshahi. To set up those types of industry huge capital is needed those people try to collect their capital Bank loan. So there


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36

is a treat opportunity for banking section to provide credit facilities and other banking service to fulfill the need of

businessman and other professional people.

Janata Bank, Kadirgonj Branch is situated at the central point of Rajshahi. So it is very easy to communicate with

this Bank for all kinds of people and people can easily and safely to come here.

Many types of middle class people live in Rajshahi. Janata Bank Ltd. provides various types of products/Scheme

and credit facilities to fulfill banking need of those people. So, it is great opportunity for this branch to collect deposit from

the savory and the bank give credit facilities to the loan seeker from those deposit funds.

In the modern time the all business activities are operating by modern technology. To collect the modern

technology the business man has to invest large capital to get modern service in business field. If the businessman gets those

modern technological services they have to take shelter under the shadow of Bank to fulfill their capital requirement and

transfer money.

Opportunities however are……..

The investment potential of Bangladesh is attracting foreign inventors. Therefore JBL has opportunity to expand the banking bashes with more banking facility.The bank has enough opportunity to increase deposits by offering hew attractive deposit services / product.JBL has the opponent to launch their individual Tk. Credit card in Bangladesh with their ATM card.JBL can invite internet based E-Banking in Bangladesh.

Threats:

Some foreign banks and public banks are coming threat to JBL.

Now a days different foreign & public bank are also offering similar types of retail lending service like JBL. so it

all competitors fight with the some weapons the natural result is declining profit.

Bangladesh Bank providing new rules and regulations for the banking institutions made tougher banking business.

When there the rules and regulations suit the organization or not it must obey these that some time imposes

barriers on daily normal operation.

From the above discuss we can say that Janata Bank Limited is one of the largest privatized Bank of the country. Overall Performance of Janata Bank Limited is satisfactory. But to face challenges of Globalization, Janata Bank Ltd. should to restructure its operation to improve as a first generation bank.

Prospect of Future Growth:

The target market of Janata Bank Limited Rajshahi Branch is a small and middle class businessman the bank is

trying to expand their target group. This branch always provides standard service to the customers. Beside a group to

customer can take bank loan against low interest for their special purpose. So this Bank is going on the bases of cost

leadership and differentiation strategy. JBL Rajshahi branch is trying creating value than competitor’s services and this

branch has control cost driver such as learning resource proper utilization, interrelationship and time control. The future

growth of this branch is high because this branch already achieves success which is given below:


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In the following table the trends of deposit collection by Janata Bank, Kadirgonj Branch, Rajshahi is shown ……………..

Years Target (in lakhs) Achieved (in lakhs)

2003 490.00 676.06

2004 767.00 683.12

2005 767.00 434.56

2006 465.00 541.89

2007 596.00 597.25

2008 657.00 846.55

2009 869.05 428.12

Table- 07: Deposits: Target VS Achieved

Graphical presentation of this data …………….

Deposits: Target VS Achieved

676.06

490

683.12

767

434.56

767

541.89

465

597.25

596

846.55

657

428.12

869

.05

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Achieved

Target

2003 2004 2005 2006 2007 2008 2009

Graph-04: Deposits Target VS Achievement


Target VS Achievement (in lakhs)

Subject head Particulars 2003 2004 2005 2006 2007 2008 2009Deposit Target 490.00 767.00 767.00 465.00 596.00 657.0 869.05

Achieved 676.06 683.12 434.56 541.89 597.25 846.55 428.18Classified loans

Target 0.06 0.19 0.16 0.00 0.32 1.20 0.65Achieved 0.03 0.17 0.00 0.00 0.58 2.73 1.35

Income excpt interest

Target 1.00 0.86 1.10 1.10 2.15 2.15 3.10Achieved 0.67 0.67 0.00 1.73 1.96 4.08 5.17

Remittan-ces

Target 0.50 0.10 0.10 0.00 0.06 1.20 4.55Achieved 0.00 0.00 0.00 0.00 0.59 5.33 12.32

Profit Target (-)8.50 (-)3.50 10.00 2.50 1.00 3.80 6.25Achieved -4.20 8.42 1.92 0.86 3.76 5.47 12.10

Table- 06: Target VS Achievement in different section


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In the following table the trend of classified loans lends by Janata Bank, Kadirgonj Branch, Rajshahi is shown ……………..


2003 0.06 0.03

2004 0.19 0.17

2005 0.16 0.00

2006 0.00 0.00

2007 0.32 0.58

2008 1.20 0.73

2009 0.65 1.35

Table- 08: Classified loans: Target VS Achieved


Target Achieved

20

03 20

04 200

5

200

6

200

7

200

8

200

9

0

0.5

1

1.5

2

2.5

3

Classified loan: Target VS Achieved

2003

2004

2005

2006

2007

2008

2009

Graph- 05: Classified loans: Target VS Achieved


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In the following table the trends of income except interest earned by Janata Bank, Kadirgonj Branch, Rajshahi is shown

……………..


2003 1.00 0.67

2004 0.86 0.67

2005 1.10 0.00

2006 1.10 1.73

2007 2.15 1.96

2008 2.15 4.08

2009 3.10 5.17

Table- 09: Income except interest: Target VS Achieved


0

1

2

3

4

5

6

Target Achieved

Classified income except interest: Target VS Achieved

2003 2004 2005 2006 2007 2008 2009

Graph- 06: Income except interest: Target VS Achieved


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In the following table the trends of income except interest earned by Janata Bank, Kadirgonj Branch, Rajshahi is shown

……………..


2003 0.50 0.00

2004 0.10 0.00

2005 0.10 0.00

2006 0.00 0.00

2007 0.06 0.59

2008 1.20 5.33

2009 4.55 12.32

Table- 10: Remittance: Target VS Achieved


0

2

4

6

8

10

12

14

Target Achieved

Remittance: Target VS Achieved

2003 2004 2005 2006 2007 2008 2009

Graph- 07: Remittance: Target VS Achieved


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In the following table the trends of Profits earned by Janata Bank, Kadirgonj Branch, Rajshahi is shown ……………..


2003 - 8.50 - 4.20

2004 - 3.50 8.42

2005 10.00 1.92

2006 2.50 0.86

2007 1.00 3.76

2008 3.80 5.47

2009 6.25 12.10

Table-11: Profits: Target VS Achieved


0

2

4

6

8

10

12

14

Target Achieved

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Profit: Target VS AChieved

2003 2004 2005 2006 2007 2008 2009

Graph- 08: Profits: Target VS Achieved


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The Deposit, Classified loan, Income except interest, Remittance and Profit position of JBL, Kadirgonj Branch; Rajshahi at

March 31, 2010 are given below…………

Table-12: Target VS Achieved (March 31; 2010)


0

200

400

600

800

1000

1200

January February March

Deposits Classified loan Income except interest Remittance Profits

Table-10: Target VS Achieved (March 31; 2010)


Target VS Achievement (in lakhs). March 31; 2010

Subject head Particulars Duration January February MarchDeposit Target Yearly 1242.34 1242.34 1242.34

Achieved Monthly 1154.57 1107.59 1044.46Classified loans Target Yearly 360.57 360.57 360.57

Achieved Monthly 0.16 0.18 0.27Income excpt interest Target Yearly 6.00 6.00 6.00

Achieved Monthly 0.24 0.45 0.69Remittances Target Yearly 17.00 17.00 17.00

Achieved Monthly 0.60 0.94 1.50Profit Target Yearly 13.15 13.15 13.15

Achieved Monthly 0.99 1.92 5.66


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Conclusion

After the statistical analysis and presentation of data, we see, in every year the growth rates are upswing to next immediate

year. The sequence of this growth rate gives a good symbol to the JBL regarding the following issues ………..

Success in tremendous growth in future trend of deposit.

Success in credit and advance.

Successful foreign transaction.

Tremendously increases of customer increasing total income.

An upswing trend in profit earning of the Branch.


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Chapter Objectives

To be acquainted with the Problems the Branch suffering from.

To discover some Recommendation to meet the solutions of the Problems.

To draw a Conclusion of the entire Report.

FINDINGS AND RECOMMENATIONS


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Identification of the Problems

During my practical study at JBL, Kadirgonj Branch, Rajshahi I have got found some problems that are hamper making

element to the banks operations and the way of profit making of the branch as well.

I however took the help of following techniques to do this…

Personal observation and

Interview

Thus the following problems are identified………..

Shortages of employees and staffs.

Unfavorable working environment.

Slow operation regarding different functions.

Absence of modern technologies.

High paper work.

Limited loan sanction.

Lack of knowledge of employees and staffs about modern technology.

Recommendations

To make solve the abovementioned problems the following recommendations can be made so that the problems can be made

solved………

Adaptation of new technologies.

Ensuring interconnectivity among the branch with internet facility.

Recruitment of employees as per the requirement.

Upgrading the working environment.

Developments of Managers by providing them with modern managerial know how.

Reducing the paper work.

Expanding the areas of loan disbursement.

Training to the employees.


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Conclusion

Bank is a financial intermediary. Banks take deposit at a cost and lend at a higher rate to cover its operational expenses and

make some profit. In this process, if loans are stuck-up, the entire process becomes jeopardized.

However, as one of the leading Commercial Bank, JBLKB is playing an important role in its area of business in mobilizing

financial resources through deposit collection and loan disbursement. It helps creating and maintaining a sound business

environment in the economy.

In my internship program, I have Analyzed total Deposit Position, Account wise Deposit Position, Deposit composition of

the Branch. In analyzing the data provided by the Bank, it is seen that, the Deposit position of the Branch is satisfactory.


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ABBREVIATIONS

A.G.M. : Assistant General Manager

BL : Bad Loss

CC : Cash Credit

CD : Current Deposit

DD : Demand Draft

D.G.M. : Deputy General Manager

D.M.D. : Deputy Managing Director

EDS : Education Pension Scheme

DF : Doubtful

DPS : Deposit Pension Scheme

FDR : Fixed Deposit Receipt

G.M. : General Manager

JBL : Janata Bank Limited

JBLKB : Janata Bank Limited, Kadirgonj Branch

JBDPS : Janata Bank Deposit and Pension Scheme

M.D. : Managing Director

MT : Mail Transfer

OD : Over Draft

OL : Other Loan

P.O. : Principal Officer

SB : Savings Bank Account

S.L : Small Loan

SME : Small and Medium Enterprises

S.O. : Senior Officer

S.P.O. : Senior Principal Officer

SS : Sub Standard

STD : Short Term Deposit

TT : Telegraphic Transfer

UC : Unclassified


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BIBLIOGRAPHY

1. Annual Report of Janata Bank Ltd. 2007-2009

2. Janata Bank Ltd. General Banking Manual (1992)

3. Janata Bank Ltd. Advance Manual (1992)

4. www.janatabank-bd.com

5. Peter Rose, Commercial Bank Management

6. Janata Bank Consumers loan guidelines

7. Circulars issued by JBL time to time

8. Money and Banking: Md. Abdul Hamid.

9. Md. Mahi, 1985, Cash Credit, Janata Bank

10. Some published and unpublished research report.

11. Different ledger books of the branch.

12. Amrita Vivek Sarker, “General Procedures of Recovery of Stuck up advances”


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List of Figures, Tables and Graphs

Figure-01 : District wise branches of Janata Bank Figure-02 : Function of Janata Bank In briefFigure-03 : Organogram of JBL, Kadirgonj Branch; RajshahiFigure-04 : Classification of dataFigure-05 : Specimen to scroll bookFigure-06 : Specimen to token bookFigure-07 : Specimen to SB/ CD ledgerFigure-08 : Specimen to daily cash bookFigure-09 : Payment procedure against chequeTable- 01 : Numbers of different depositsGraph-01 : Trend of depositsTable-02 : Target vs Achievement (General banking)Table- 03 : Sector wise loansGraph-02 : Sector wise loanTable- 04 : Statement of number of borrowersFigure-10 : Factors to be considered when obtaining documentsGraph- 03 : Disbursement of loansFigure- 11 : Types of securitiesFigure-12 : Loan handling diagramFigure-13 : Strategies of loan recoveryTable- 05 : Financial StatementTable- 06 : Target VS Achievement in different sectionTable- 07 : Deposits: Target VS AchievedGraph-04 : Deposits Target VS AchievementTable- 08 : Classified loans: Target VS AchievedGraph- 05 : Classified loans: Target VS AchievedTable- 09 : Income except interest: Target VS AchievedGraph- 06 : Income except interest: Target VS AchievedTable- 10 : Remittance: Target VS AchievedGraph- 07 : Remittance: Target VS AchievedTable-11 : Profits: Target VS AchievedGraph- 08 : Profits: Target VS AchievedTable-12 : Target VS Achieved (March 31; 2010)

Overall Banking Operations

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