Professional Documents
Culture Documents
Practice makes a man perfect- the proverbs tell us about to practice those procedures that we
have learned through out the graduation program. Theoretical knowledge does not highlight
the reality as clearly as practical knowledge. Theoretical knowledge is a guideline but
practical knowledge is experience oriented. But both of them are equally important.
The internship report comprises a brief study on IFIC Bank Ltd. The report is distributed
in many parts according to nature and requirement of organization and according to the
instructions of the supervisor of the report.
The purpose of study is to develop skills through learning various aspects of organization.
The study enables to get command on bookish knowledge through practical approach and to
understand the difference in both approaches. This thing increases the knowledge and brings
betterment in working within organizational environment. It includes practical experience
through which I have gone through whole internship program.
Origin of the Report
The internship program is required for the student of BBA. It is a program with duration of
three months. Students who have completed all the required courses are eligible for this
program. In the internship program I was attached to the IFIC Bank Limited for three months.
This report originates to fulfill the requirement of studying BBA Program of Ahsanullah
University Of Science & Technology. This program has been designed to facilitate the
students with basic theoretical and practical knowledge in the job activities in the context of
Bangladesh as well as worldwide.
Since the BBA program is an integrated, practical and theoretical method of learning, this
program is required to have practical exposure in any kind of business organization is last
term of this program. This report has been prepared on practical orientation.
Background of the study
Banks are the life-blood of modern economy. Banks are established to earn profit and help
economic and financial activities so as to help economic development of a country. In such a
context, the main business of Banking is to take deposits from customers and sanction credit
to the borrowers. Thus the Banks act as financial intermediaries. As a service industry, the
Banks are customers oriented. Customers are the driven power of a Bank and it earns profit
by serving customers. In general, he, who has an account in a Bank, may be treated as a
customer.
In broad sense, customers may be seen from the two wings Depositors and Borrowers.
Beside these, other short-term served customers may exist in a Bank. However, as the
Banking area is very hard and competitive, so in order to survive and successfully compete
with other Banks, a Bank not only have to serve but have to nicely and effectively serve its
customers. Now, in Bangladesh more than 50 scheduled Banks are operating their activities.
Among those the IFIC Bank Ltd. has positioned well & would be able to create a strong
confidence in banking sector.
IFIC Bank Ltd is one of the leading private banks in Bangladesh. From its inception it has
been playing a very strong role in the overall development of the country. To measure the
overall performance of IFIC Bank Ltd was impossible for me in only three months. So I
decided to observe the functions and performance of the General Banking section. I have also
tried to give so much recommendation for the improvement of the performance of General
Banking System of IFIC Bank Ltd.
GENERAL OBJECTIVES:
To fulfill the partial requirement of BBA program.
To gain practical experience and view the application of theoretical knowledge in the real
life.
SPECIFIC OBJECTIVES:
To know the general description of the branch banking
To know the relevant rules, regulations, theories and practices for banking.
To gather knowledge about general banking activities
To identify the documentation & guideline for the potential credit and deposit customers.
SOURCE OF DATA
I have emphasized on the practical observation though this report is prepared based on
primary and secondary data. While preparing the report, I have taken information from the
following sources:
PRIMARY SOURCES
Observation of banking activities.
Conversation with the respective executives & officers of the Bank.
Practical work exposures from the different desks of the IFIC Bank, Kawran Bazar Branch.
SECONDARY SOURCES
Periodicals published by Bangladesh Bank.
Website of IFIC Bank Ltd.
Annual report of the IFIC Bank.
Different lending forms and schemes used by the Bank.
limitation of the study
This study is subject to the following limitations
First of all the time limitation, it is not possible to gather all the information about the
banking activities in 3 months internship period
Difficulty in gaining accesses to financial sector.
Non-availability of the most recent statistical data.
Some secrecy was maintained in the bank and I was not exposed to activities.
Besides this, it was very difficult to carry out the whole analysis on the basis of limited
scope of study.
vision of the bank
To be the best private commercial Bank in Bangladesh in terms of efficiency, capital
adequacy, asset quality, sound management and profitability having strong liquidity.
Loan schemes
Special Account
Education Loan
Thikana or House Building Loan
Flexi Loan
Peshajeebi Loan
Auto Loan
SME Loan
INTRODUCTION
During my practical orientation I was placed in IFIC Bank Limited at Kawran bazar Branch. I
studied their General Banking procedures. General Banking is the starting point and main
function of all the banking operations. It is the department which provides day-to-day service
to the customers. It is associated with financial transactions to facilitate customer service.
However, there are other departments like clearing, financial control and accounts,
computer to give both of them back office support and to maintain regular and immaculate
records.
FUNCTIONS OF GENERAL BANKING
This department maintains following functions:
Accounts opening section.
Cash section
Test arrangement
FDR
Remittance section.
Clearing section.
Accounts section.
Establishment.
ACCOUNTS OPENING SECTION
This section opens different types of accounts for their valued customers. Selection of
customer is very important for the bank because banks success and failure largely depends
on their customers. If customers are bad, they create fraud and forgery by their account with
bank and this destroys the goodwill of the bank. So, this section takes extreme caution in
selecting its valued customer.
TYPES OF ACCOUNTS
Accounts can be classified into two types:
CURRENT ACCOUNT (CD)
Current account is convenient for the business persons who need frequent transaction. In case
of Current Account, no interest is given to the account holder. There are current accounts for
individual, joint current account, proprietorship current account, partnership current account,
and limited company current account. It is a running and active account, which may be
operated upon any number of times during a working day. There is no restriction on the
number and the amount of withdrawals from a current account.
Documentation: Proprietorship
Attested photocopy of Trade License
Two copies of passport size photographs of account holder
Signed and rubber stamp seal of the client
Photocopy of National ID Card
Documentation: Partnership
Attested photocopy of Trade License
Two copies of passport size photographs of account holder
Photocopy of National ID Card
Attested photocopy of Partnership deed
Documentation: Private Limited Company
Attested photocopy of Trade License
Restrictions on SB Account:
Restriction on Withdrawals and Deposit:
The number of withdrawals over a period of time is limited. Two withdrawals per week are
permitted. But for more than that, no interest will be paid on rest amount for that month.
The total amount of one or more withdrawals on any date should not exceed Tk.20000.00
SPECIAL ACCOUNTS
Double Return Deposit Scheme (DRDS)
IFIC Bank is pleased to offer 8 Years (Proposed) Double Return Deposit Scheme
(DRDS) with special feature:
Minimum DepositTerm
Tk. 25,000
Benefit
8 Yrs.
Proposed
Term
3Yrs.
8.25%
TK. 1.00 crore & above but less than TK. 5.00
8.50%
9.00%
9.25%
corer
TK. 5.00 crore & above
8.25%
TK. 1.00 corer & above but less than TK. 5.00
8.50%
9.00%
corer
TK. 5.00 corer & above
FDR (Tenure 1 year):
Types of Deposits
8.25%
TK. 1.00 crore & above but less than TK. 5.00
8.50%
9.00%
crore
TK. 5.00 crore & above
OPENING OF FIXED DEPOSIT ACCOUNT
The depositor has to fill up an application form wherein he/she mentions the amount of
deposit, the period for which deposit is to be made and the name(s) in which the fixed deposit
receipt is to be issued. In case of a deposit in joint names, the banker also takes the
instructions regarding payment of money on maturity of deposit i.e. whether payable jointly
or payable to survivor etc. The banker also takes the specimen signatures of the depositor(s).
A Fixed Deposit Receipt is than given to the depositor acknowledging receipt of the sum of
money mentioned therein. It also contains the rate of interest and the date on which the
deposit will fall due for payment. In this account no transactions are allowed and no Cheque
books are issued. Customers are given Fixed Deposit Receipt only.
PAYMENT OF INTEREST
It is usually paid on the maturity of the fixed deposit. IFIC Bank Ltd, calculates the interest at
each maturity date and provision is made on that Miscellaneous creditor expenditure payable
account is debited for the accrued interest.
Types of Deposits (FDR)
Deposit Rates
One month
8.00%
Three months
8.50%
8.50%
MIS
3 YRS
3 Yrs
TK.50,000.00
TK.438.00
TK.450.00
TK.1,00,000.00
TK.875.00
TK.900.00
5 Years Term
Amount payable After Maturity Monthly
Installment TK.
TK.
500
20,781
500
38,134
1,000
41,562
1,000
76,268
2,000
83,125
2,000
1,52,536
3,000
1,24,687
3,000
2,28,804
5,000
2,07,812
5,000
3,81,340
10,000
4,15,624
10,000
7,62,680
15,000
6,23,435
15,000
11,44,020
20,000
8,31,247
20,000
15,25,360
25,000
10,39,059
25,000
19,06,699
50,000
20,78,118
50,000
38,13,399
4. Partnership firms: A business concern owned and managed by more than one person who
may be registered or not registered is a partnership firm.
5. Private limited: A body corporate formed and registered under companies Act 1994, with
limited members.
6. Public limited: A body corporate formed & registered under companies Act 1994 with
limited liability of the shareholders and with no upper ceiling of shareholding both certificate
of incorporation and certificate of commencement has been given by registrar.
7. Trusts: Trusts are created by trust deed in accordance with the law.
8. Liquidators: Liquidators are appointed by court of law for companies going into
liquidation.
9. Executor: Executors are appointed by a deceased himself before his death by with to
settle the accounts of the person after his death.
10. Club/Associations/Societies: There are organizations created & registered or not
registered under societies registration act.
11. Co-operatives: There are corporate bodies registered under societys registration Act or
companies Act or the co-operative societies Act.
12. Non-Govt. Organization: NGOs are voluntary organizations created & registered and
societys registration Act or co-operative societies Act.
13. Non-Trading concern: These are organization registered under societies registration Act
or companies Act or co-operative societies Act.
CASH SECTION
Cash department is the most vital and sensitive organ of a branch as it deals with all kinds of
cash transactions. This department starts the day with cash in vault. Each day some cash i.e.
opening cash balance are transferred to the cash officers from the cash vault. Net figure of
this cash receipts and payments are added to the opening cash balance. The figure is called
closing balance. This closing balance is then added to the vault. And this is the final cash
balance figure for the bank at the end of any particular day.
Functions of cash department
Cash payment
Cheque cancellation process
Cash receipt
Cash payment
Cash payment is made only against cheques.
This is the unique functions of the backing system which is known as payment on demand.
It makes payment only against its printed valid cheque.
Cheque cancellation process
Receiving cheque by the employee in the cash counter and verification of the following by
the cash officer in the computer section:
Date of the cheque. (it is presented within 6 months from issue date).
Issued from the branch.
An amount in figure and in word does not differ.
Cheque is not torn or mutilated. Then gives pay cash seal and sends to the payment counter
and payment office makes payment.
Cash receipt
Another important function of this department is receipt of cash. Depositors deposit money in
the account through this section by deposit slip.
It receives deposit from depositors in from of cash.
So it is the mobilization unit of the banking system.
It receives cash for issuing pay order TT, DD.
Books maintained by this section
Vault register: It keeps accounts of cash balance in vault at the bank.
Cash receipt register: Cash receipt in whole of the day is recorded here.
Cash payment register: Cash payments made in a day are entries here.
Rough vault register: Cash collection for final entry in vault registers done here, as any error
and correction is not acceptable.
Cash balance book: Balance here is compared with vault register. If no deference is found, it
indicates no error and omission.
LOCAL REMITTANCE
Sending money from one place to another place for the clients is another important service of
the bank. This service is an important part of transaction system. In this service system,
people, especially businesspeople can transfer funds from one place to another place easily.
There are three kinds of technique for remitting money from one place to another these are
Demand draft (DD)
Pay order (PO)
Telegraphic Transfer (TT)
DEMAND DRAFT (DD)
DD is called Bankers Draft. It is an instrument, issued by a particular branch, drawn on
another branch of the same bank, instructing to pay a certain sum of money. It is very popular
instrument for remitting fund from one corner of a country to another. DD is issued in favor
of a client who maintains an a/c with IFIC Bank.
It can be issued against Cash or Cheque. If DD amount is more than TK. 50,000/=, a test code
is given on IBCA. The a/c treatments will be after giving these entries an Inter Bank Credit
Advice (IBCA) is prepared which contains the controlling number, depicted that the branch is
credited to whom it is issued.
Commission and charges of DD:
Postal charge Tk. 15.00 + commission 0.10% + 15% Vat on commission.
Demand Draft Issuing Process
After finishing all the required information entry of the DD given in the DD issuing register
and at the same time bank issues a DD confirmation slip. It is entered into the DD advice
issue register and a number is put on the confirmation slip form in the same register. Later the
bank mails this advice to the drawer branch.
PAY ORDER (P.O)
Pay order gives the right to claim on the issuing bank. A payment is an instrument from one
branch to another branch of the bank to pay a spec IFIC sum of money. Unlike cheque there
is no possibility of dishonoring because before issuing pay order the bank takes money in
advance. There are three reasons behind the use of P.O:
Remitting Purpose
Advice to Pay
Payment against bill submitted to the bank.
Pay Order consists of three parties:
Beneficiary
Applicant
Counter Part
Commission and charges of P.O:
Amount of P.O
Commission on Remittance
Up to TK. 100,000
25
100,001 to 500,000
50
Above 500,000
100
25
On Issuing of TT:
1.
2.
b)
Cr.
On Payment of TT
Bills Payable A/C TT Payable -Dr.
Party A/C -Cr.
CLEARING SECTION
This section receives all kinds of cheques in favor of the valued client for clearing on the part
of their banking services. After receiving the cheque, it is necessary to endorse it and cross it
specially. Clearing of cheque is done through the clearing house in Bangladesh Bank.
TYPES OF CHEQUE FOR CLEARING
Dr.
Depositors A/C
Cr.
large ledger and journal books are not kept like some nationalized bank. It receives the
vouchers from all departments and prepares the subsidiaries and maintains accounts.
ESTABLISHMENT SECTION
This section deals with employees salary, many types of internal expenses such as purchases
of stationary, equipment, machinery, payment of labor cost and conveyances. In case of leave
of absence employee collects prescribed from this section.
LEARNING THROUGH MY TASKS
I worked at IFIC Bank for three months and gathered lots of experience and practical
knowledge, which I couldnt have gathered if I hadnt worked here.
1 Account Opening: At first I worked in Accounts opening section and I learned how to open
the account which was very interesting to me, because I had to deal with different types of
people.
2 Clearing: Then I worked in clearing section, where I learned how to receive Cheques and
keep the record.
3 Remittance: Remittance which are mainly Demand Draft, Telex Transfer, and Pay Order.
Here I learned how to issue Demand Draft, Pay Order.
4. Timeliness: I found here everybody follows strict timetable. Every employee enters the
bank at right time, and also leaves the bank at due time. Nobody can leave the bank before
5.30 pm. Every work is performed in time.
5. Discipline: Every work is done through a disciplined process. Employees are well
mannered. Account opening forms and deposit account forms are checked carefully. Every
voucher is checked carefully, it moves from table to table in a disciplined way.
6. Customer Relation: every employee behaves very well with the clients. Environment is
friendly for the clients and employees are also friendly with clients. Every employee can
deliver the product as fast as they can. Thus, they can maintain good relation with clients.
6.1 My Expectation: My expectations are fulfilled working in this bank. Now to some extent
I know how to implement the theories into real life. Like customer relation, deposit
collection, and mobilization, loan financing, etc. Three month internship is very short time to
learn. This time is not enough to gather any kind of experience. But my supervisor helped me
a lot.
6.2 Internship related to major field of study
I have come to experience the reality of studying BBA beside books. During my study I have
to work and make several proposals which I found only in books. But it was a great
experience to work with my own hand.
SWOT ANALYSIS
SWOT analysis is the detailed study of an organizations exposure and potential in
perspective of its strength, weakness, opportunity and threat. This facilitates the organization
to make their existing line of performance and also foresee the future to improve their
performance in comparison to their competitors. Using this tool, an organization can study its
current position, it can also be considered as an important tool for making changes in the
strategic management of the organization.
STRENGTH
Quality services through modern sophisticated automated system.
In case of service offered by all private banks in our country, IFIC Bank Ltd, has maintained
high quality.
Found that a good image about the Bank has been created among the customers through
careful and quality services.
Since the govt. has imposed some new rules regarding private banking operation, IFIC Bank
Ltd. easily coped with the given rules.
Regarding contribution towards countrys GDP they have contributed a handsome amount per
year.
Experienced and competing workforce who have expertise knowledge about the bank
Some loyal clients who always bring in new clients.
Management consists of knowledgeable and authoritative personnels.
Reputation of the management
THREATS
Poor economical condition of our country.
Entrance of new private commercial banks.
Different attractive services offered by some foreign banks.
Daily basis interest on deposit offered by some Multinational banks.
Existing card service of different banks.
Other commercial banks are offering higher salary that may create problem for IFIC Bank
Ltd to retain their experienced managers and executives.
Findings & discussion
IFIC Bank is one of the largest and oldest private-sector commercial bank in Bangladesh,
with 27 years of experience. Adaptation of modern technology both in terms of equipment
and banking practice ensures efficient service to clients.
But IFIC Bank has been facing few problems.
In general banking system they follow the traditional banking system. The entire general
banking procedure is not fully computerized.
According to some clients, opinion introducer is one of the problems to open an account. If a
person who is new to the city wants to open an account, it is a problem for him/her to arrange
an introducer of SB or CD accounts holder.
Bankers face enormous problems to fill up loan related paper like parties loan application,
stock report, Net worth valuation report etc.
Proper documentation under traditional rules in some cases creates serious problems for
investment taking practices.
Lack of team work is a major problem in general section.
Sometimes the valuation of properties is not calculated properly for which clients suffer.
It does not offer various loan projects like other banks.
to suffer for this situation. May- be it would be the reason for employees de-motivation as
well as the customers dissatisfaction.
IFIC Bank Ltd. should focus on their promotional activities.
They should also focus on the marketing aspects to let customers know about their products
and offerings and more promotion should be given to attract new customer.
IFIC Bank Ltd. must develop electronic banking system to moderate the service.
Technological advantage of a bank ensuring its competitive edge in the market place can only
be achieved by efficient manpower. Electronic banking system also allows increased access
to the financial system by its customers.
conclusion
From the learning and experience point of view I can say that I really enjoyed my internship
period in IFIC Bank Ltd. at Kawran bazaar Br. from the very first day. I am confident that
this 3 three months internship program will definitely help me to realize my further career in
the job market.
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 banking of IFIC Bank. I have tried by soul to
incorporate the necessary relevant information in my report.
Top management of IFIC should conduct a comprehensive study or survey on the branches
performance, its managements performance and the employees performance and their
motivation as well. Few loyal committed customer bases, lack of modern and effective
technology or facilities, not enough skilled employee in some sector, considering all of these
very important factors. IFIC Bank should always try to improve their service level in every
term. The marketing department should think freshly about their marketing objectives and
practices. Rapid changes can quickly make yesterdays wining strategies out of date. As a
developing private bank in Bangladesh, IFIC Bank shouldnt allow their clients to get
dissatisfied with their service. They have their competitors who are actively striving to take
the advantages in every side. During the course of my practical orientation I tried to learn the
practical banking to relate it with my theoretical knowledge, what I have gathered from
various courses.