Introduction

This is an Internship Report. Bachelor of Business Administration (BBA) Course requires a three months attachment with an organization followed b a report assigned b the super!isor in the organization and endorsed b the facult ad!isor. I too" the opportunit to do m Internship in a ban"ing ser!ice pro!ider organization which is the largest and oldest pri!ate# sector commercial ban" in Bangladesh $%ttara Ban" &imited' %nder the proper guidance of onsite super!isor (d. Alamgir )ossain who is the manager of %ttara Ban" &imited. I ha!e conducted m stud on $Commercial Ban"ing operations and ser!ices of %ttara Ban" &imited. ( facult super!isor Rafiqul Islam professor of daffodil international uni!ersit also appro!ed the topic and authorized me to prepare this internship report as part of the fulfillment of requirement and ga!e me proper guidance and assistance o!er time.

Background of the Study

All o!er the world the dimension of Ban"ing has been changing rapidl due to *eregulation+ Technological inno!ation and ,lobalization. Ban"ing in Bangladesh has "eep pace with the global change. -ow Ban"s must compete in the mar"et place both with local institution as well as foreign ounces. To sur!i!e and thri!e in such a competiti!e ban"ing world+ two important requirements are *e!elopment of appropriate financial infrastructure b the central Ban" and *e!elopment of $professionalism' in the sense of de!eloping an appropriate manpower structure and its e.pertise and e.perience. To introduce s"illed Ban"er+ onl theoretical "nowledge in the field of ban"ing studies is not sufficient. An academic course of the stud has a great !alue when it has practical application in real life situation. /o+ I need proper application of m "nowledge to get some benefit from m theoretical "nowledge ma"e it more tactful. 0hen I engage m self in such fields to ma"e proper use of m theoretical "nowledge in m practical life situation. /uch theoretical "nowledge is obtained from a course of stud at onl the half wa of the sub1ect matter. Internship implies on other the full application of the methods and procedures implies on the other full application of the methods 2

and procedures through rich acquire of sub1ect matter can be forcefull applied in m da #to# da life situation. /uch a procedure of practical application is "nown as Internship.

Objective of the Study

The ob1ecti!e of the report is to ha!e a real li!e e.posure in the ban"ing /ector. It will help to de!elop m "nowledge in sector. This practical 3rientation gi!es me a change for the Co# ordination of theoretical "nowledge with the practical e.perience. The following are of ob1ecti!es for this practical orientation in ban". To find out the position of %ttara Ban" &imited in the ban"ing industr and also find out how its present strateg is wor"ing. To anal ze the comparati!e performance of %ttara Ban" &imited and some other selected pri!ate commercial ban"s. To "now the successi!e position of each ban". To anal ze the ban"4s performance in some "e areas. To find out e.isting problems of the ban". To formulate alternati!e strategies for sol!ing the problems. To recommend some better solutions for sol!ing the problems. To formulate an implementation plan for the recommended steps. To formulate contingenc plan as a safeguard for changing.

Significance of the Study

)istoricall Bangladeshi ban" is huge number of loan. As a result the burden of bad debt has a negati!e impact of their profitabilit industries. In this situation the concept of / ndicate 5inancing is new concept in Bangladesh. After successful completion of this stud + it can be used to identif the performance of %B& and also in!ent new technique+ which can be used to pre!ent a good loan to be a classified loan and these technique can also be used in other ban"s to get the same benefit. 6 as well as their new In!estment. (a 5inancial Institutions are tr ing to a!oid gi!ing long#term loan to the Industries+ especiall in new

Research Methodology
Research Design Both descripti!e and e.plorator researches ha!e been selected to anal ze this paper. )ere the researcher discussed the credit appraisal procedure of %B& and criticall anal ze the appraisal procedure with the standard one. Comparison anal sis has also been ta"en part in this stud . Data Collection Procedures There are two main sources of collecting data. To complete this report data has been collected from both primar and secondar sources. The primar data has been gathered b formal discussion with the credit officials and borrowers. /ome secondar data has also been collected to ma"e the report more concrete. These data has been collected from different financial statements+ annual

Li itations
To prepare this report+ I ha!e faced some limitations+ which are mentioned below. Limitation of time: It was one of the main constraints that hindered to co!er all Aspects of the stud . Lack of Secondary: The annual brochure was the main secondar sources of information that was not enough to complete the report and pri!ate the reader a clear idea about the ban". Limitation of the Scope: 0hile collecting data+ the did not disclose much information due to the confidentiall of the organization.

!volution and Develo" ent of banking syste

in Bangladesh

Evolution of Bank The modern ban"ing s stem is an e!olutionar growth right from the (iddle Ages. The genesis of modern ban" la in the functions performed b the (erchant with wide reputation commanding confidence far and near could easil finance domestic and foreign trade. The famous merchant houses established branches to trade centers at home and abroad began to use credit de!ises to accommodate their customers 8agath /eth+ for e.ample+ had his branch office in &ondon in the 29th centur . :!en earlier the indigenous hounds+ which finance domestic trade in India was the inno!ations of the local merchants. In this credit operation in these credit operations in the ancient merchant houses la the germs for the de!elopment of the important credit instrument latel "nown as bill of e.change and these merchants were !irtuall forerunner of the modern e.change ban"s. The second ancestor of ban"s was the mone lender. The mone lender thus was an embr onic ban"er performing duel functions lending mone and mobilization of sa!ings. :.actl the modern ban" does this as a lineal descendant of the ancient mone lender. The third in the chain of ancestors stood the goldsmith ha!e safe !aults for the safe up"eep or their gold stoc"s. The were the embodiments of safet and securit . -aturall + people with !aluables and 1ewelers approached goldsmiths for safe custard. Initiall the goldsmiths charged commission for safe up"eep. The practice later on changed as the goldsmith utilized the deposits for earning profits. A modern Ban" then comes in itself the functions of all the there ancestors li"e the merchant it ma"es a specialt of financing foreign trade li"e the mone lender collects sa!ings and end li"e the goldsmith pro!ides a con!enient mechanism b which people can ma"e pa ments to each other.

Develo" ent of banking in Bangladesh

Ban" s stem was practiced in the Indian subcontinent from the ancient period. In Indian subcontinent merchants+ goldsmith mone lenders were the primar ban"ers. *uring the (oghal period ban"ing and credit business was enchanted rapidl . Then the agenc house of 1agth /eth was similar to the merchant house of &ombard /treet. In 2<== A* $)industan Ban"' was established as the first 1oint stoc" ban". In 2<9; $Bengal Ban"' and in 2<9> ,eneral ban" of India was lunched. Then both the ban" absol!ed respecti!el in 2<?7 and 2976.

*uring the earl period of -ineteenth centur in 29=> $Ban" of Bengal' in 29;= $Ban" of Bomba ' and in 29;7 $Ban" of (adras' was established. These Ban"s were called @residenc Ban". Then in 2?6= these three ban"s merged to $Imperial Ban" of India'. In 2?;< after the separation ban" business in our countr faced a se!ere disaster as non (uslim Ban"ers left to India. Then $Reser!e ban" of India' acted as the $Central Ban" of @a"istan' in 2?;9 to re# build the Ban" Business $/tate Ban" of @a"istan' was established as central ban" of @a"istan.

In 2?<2 Bangladesh became independent. After liberation $Bangladesh Ban"' was automated with the assets and liabilities of former $/tate Ban" of @a"istan'. It is the central ban" of Bangladesh. *uring @a"istan period in our countr there were 2=?= branches of 26 commercial ban"s. Three foreign ban"s were also acti!e with 2; branch offices. Before liberation 9=A of ban"ing acti!ities of our countr was controlled b @a"istan. Consequentl Bangladesh traders and industrialists didn4t get notable help from the Commercial Ban"s. After liberation reformed the destro ed econom on 6>th (arch 2?<6 the ban"ing sector of Bangladesh was nationalized. After nationalization go!ernment of Bangladesh changed the entire ban" to si. ban"s which are /onali Ban"+ Rupali Ban"+ 8anata ban"+ Agrani Ban"+ @ubali Ban" B %ttara ban". their role in de!elopment of trade and commerce of Bangladesh as well as in the de!elopment of econom .

Banking Structure in Bangladesh

Ban"ing s stem of Bangladesh comprises of different t pes of ban" and financial institutions. The name of our central ban" is $Bangladesh Ban"' it is the director and regulator of ban"ing s stem of Bangladesh. Ban"ing structure in Bangladesh is briefl described below. Bangladesh Ban" is the central ban" of Bangladesh. It is director of mone mar"et in Bangladesh. It regulates the acti!ities of other ban"s of Bangladesh through credit control+ e.change control etc. Commercial ban" both the public and pri!ate sectors of commercial ban" are acti!e in Bangladesh. There are ; nationalized commercial ban"s# /onali Ban"+ Rupali Ban"+ Agrani Ban"+ 8anata ban". In 2?97 priorit gi!es on pri!ate sector of ban"ing business. As a result two nationalize ban" was handed o!er to pri!ate sector+ which are @ubali and %ttara ban" and now Rupali ban" is supposed to hand o!er in the pri!ate sector. -ow in our countr a large number of pri!ate ban"s are doing ban"ing business.

#ierarchy $nalysis

>

At present there are 51 scheduled ban"s operating all o!er the countr . 3ut of these+ 9 are state#owned (including fi!e specialized ban"s)+ 9 are pri!ate commercial ban"s and the rest 1! are foreign commercial ban"s. @ri!ate commercial ban"s are di!ided into three groups according to their commencement of business. The are familiar in the name of 2st generation+ 6nd generation and 7rd generation ban"s.

1st "eneration Banks #Esta$lished 19% &19%%': ercial bank Ltd& $B Bank Ltd&

%ational Bank Ltd& 'he City Bank Ltd & (nited Co

I)IC Bank Ltd & Isla i Bank Bangladesh Ltd and $l*Baraka Bank Ltd +
nd

"eneration Banks #Esta$lished 199 &199(':

!astern Bank Ltd& %CC Bank Ltd& Southeast Bank Ltd& Dhaka Bank Ltd& $l $rafah Isla i Bank Ltd& Social Invest ent Bank Ltd and Dutch*Bangla Bank Ltd+ !rd "eneration Banks #Esta$lished 1999 to present':

Mercantile Bank Ltd& Standard Bank Ltd& One Bank Ltd& !,IM Bank Ltd& Pre ier Bank Ltd& Mutual 'rust Bank Ltd& )irst Security Bank Ltd& Bank $sia Ltd& 'he 'rust Bank Ltd& -a una Bank Ltd& BR$C Bank& and Shahjalal Isla i Bank Ltd+

<

OR.$%I/$'IO%$L P$R'

De"osit Sche es
5oreign currenc -on# Resident 5oreign Currenc deposit Account (-5C*). 5oreign Currenc Account. Resident foreign Currenc *eposit Account (R5C*). &ocal Currenc /a!ings Account. 5*R Account. /T* Account. &oanDAd!ances /chemes Consumer Credit /cheme. @ersonal &oan /cheme. International Ban"ing Treasur and *ealing room. &ease financing. )ome Remittance.

(''$R$ B$%0 $' $ .L$%C!

%ttara Ban" is one of the largest and oldest pri!ate#sector commercial ban" in Bangladesh+ with ears of e.perience. Adaptation of modern technolog both in terms of equipment and ban"ing practice ensures efficient ser!ice to clients. There are some also "e related information about this particular ban" are gi!en in below. %B& is one the largest pri!ate ban"s in Bangladesh. It operates through 622 full computerized branches ensuring best possible and fastest ser!ices to its !alued clients. The ban" has more than >== foreign correspondents worldwide and total number of emplo ees nearl 7C>6. The Board of directors consists of 2; members. The ban"s is headed b the (eaning *irector who is the Chief :.ecuti!e 3fficer The head office is located at Ban"4s own 29#storied building at (oti1heel+ the commercial center of the capital+ *ha"a.

%B& -etwor"s Corporate offices (corporate branch B &ocal office) Regional office 0orldwide affiliates Total Branches (including corporate branch B local office) Authorized *ealer Branches Treasur B *ealing Room Training Institute (an power 5igure E Recent sur!e shows that %B& -etwor"s in Bangladesh

6 26 >== 622 79 2 2 7C>6

UTTARA BANK LIMITED AND ITS SUBSIDIARY CONSOLIDATED BALANCESHEET AS AT 31 DECEMBER 2011 Amount in Taka

2=

Notes

2011

2011

PROPERTY AND ASSETS

Cash: Cash in Hand (including foreign currencies) Balance i!h Bangladesh Ban" and i!s agen! Ban"(s) (including foreign currencies) Bala !e "#th othe$ Ba %s a & '# a !#al # st#t(t#o s : $n Bangladesh %u!side Bangladesh *o e+ at !all a & sho$t ot#!e 4.00 5,366,01),)13 4,976,51#,0#4 3#9,496,329 & 22,89),7)9,80 8 22,735,##9,054 15#,#60,754 5),010,287,)7 6 49,3#4,251,667 4,626,035,#09 )29,875,9)) 33,337,210 396,53#,734 & 3.00 6,770,218,585 1,550,160,241 5,220,05#,344 6,636,972,108 1,294,274,237 5,342,697,#71

5.00

, -est.e ts: 'o(ern)en! %!hers

6.00

18,591,127,858 1#,429,29#,#54 161,#29,004

/oa s a & A&-a !es: *oans, cash credi!s, o(er draf!s e!c. Bills +urchased and discoun!ed 0#1e& assets # !l(&# 2 la &, 3(#l&# 2 '($ #t($e a & '#1t($es

7.00

)8,672,687,127 44,372,359,512 4,300,327,615

#.00

2,762,22#,#92

2,79#,141,777

22

Perfor ance of (BL "E)ER*L B*)+,)"

"eneral Banking -.eeting day to day $anking/ ,eneral Ban"ing *epartment usuall performs a lot of important ban"ing acti!ities. ,eneral ban"ing department is that department which is mostl e.posed to the ma.imum number of ban" customers. It is the introductor department of the ban" to its customers. All business concerns earn a profit through selling either a product or a ser!ice. A ban" does not produce an tangible product to sell but does offer a !ariet of financial ser!ices to its customers. The 8atrabari branch of %B& has all the required sections of general ban"ing and these sections are run b manpower with high qualit ban"ing "nowledge. )ence+ a touch of rich customer ser!ice is pre!ailing in the branch. In %B& the following departments are under general ban"ing sectionE Account opening department. &ocal remittance department. Cash department. Clearing department. Collection department. In the following Chapters brief discussion on the abo!e departments are presented respecti!el .

26

$ccount O"ening De"art ent

-0ommunication 1ith the 0lient/ The relationship between a ban"er and his customer begins with the opening of an account b the former in the name of the latter. Initiall all the accounts are opened with a deposit of mone b the customer and hence these accounts are called deposits accounts. Ban"er solicits deposits from the members of the public belonging to different wal"s of life+ engaged in numerous economic acti!ities and ha!ing different financial status. There is one officer performing !arious functions in this department. 2unctions of the Department The following are the main functions performed b the departmentE (i) Accepting of *eposit (ii) 3pening of Account (iii) Chec" Boo" issue (i!) Transfer of an Account (!) Closing of Account *ccepting of Deposits *eposits are life#blood of a commercial ban". 0ithout deposits there are no businesses for the commercial ban"s of an nature (-CBs+ @CBs or 5CBs). In this branch the !arious t pes of accounts are offered to !arious customers+ which are grouped intoE A. *emand deposit account. B. Time deposit account. De and De"osit $ccount The amount in accounts are pa able on demand so it is called demand deposit account. The following accounts are under demand deposit accountsE 2. Current account. 6. /a!ings account. 27

7. /hort -otice Term *eposit (/T*) 0urrent account: This t pe of account is opened b both indi!iduals and business concerns. 5requent transactions (deposits as well as withdrawal) are allowed in this t pe of account. A current aDc holder can draw chec"s on his account for an amount for an numbers of times in a da as the balance in his account permits. This account pro!ides no interest. The minimum balance to be maintained is T". 6===. -o new account can be opened with a chec". Savings *ccount Indi!iduals for sa!ings purposes open this t pe of account. Current Interest rate of these accounts is C.C= A per annum. A minimum balance of T". 2=== is required to be maintained in a /B account interest on /B account is calculated and accrued monthl and credited to the account half earl . Interest calculation is made for each month on the basis of the lowest balance at credit of an account in that month. A depositor can withdraw from his /B account not more than twice a wee" up to an amount not e.ceeding 6CA of the balance in the account. !3 Special )otice 4erm Deposit #S4D': The deposits in this account are withdrawal on prior notice !ar ing from < to 6? da s and 7= da s or more. The interest is paid on the balance of the account. Current interest rate is >.C=A per annum. 5pening 6rocedure 5or opening such ADC+ application in the prescribed form along with a set of specimen signature dul !erified b Bangladesh mission abroad or b a reputable ban" of an other person "nown to the ban"+ should be obtained b the brandies. In case of persons+ alread maintain an 5.C ADC or -.5.C.*. ADC with them+ reference to that 5.C ADC will ser!e+ the purpose of introduction+ the branch ma !erif the signature from the specimen signature and alread a!ailable with them. 3nl one such 5.C ADC can be maintained and the balance in the AD C should not e.ceed F 7=.===D# or equi!alent pound sterling at an one time. The ADC holder is also required to submit photocopies of passport+ !isa+ and wor" permitDcontract. As this is a current account no Interest is paid to the ADC holder.

2;

'i e De"osit $ccount The amount in this aDc is pa able onl after stipulated time. The following accounts are under time deposit aDcE (a) 5i.ed *eposits which are repa able after the e.pir of fi.ed period and are negotiable. (b) Bearer Certificate of *eposits (BC*)+ which are repa able after e.pir of fi.ed period. (c) -on#resident 5oreign Currenc deposits are term deposits maturing after 2 month+ 7months+ >months and 2 ear. This aDc4s can be opened either in %./. dollar or pound sterling. -o interest is paid in case of premature encashment. )i1ed De"osit $ccount These are deposit+ which are made with the ban" for a fi.ed period specified in ad!ance. The band need not maintain each reser!e against these deposits and therefore+ ban" gi!es high rate of interest on such deposits. A 5*R is issued to the depositor ac"nowledging receipt of the sum of mone mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for pa ment. Rate of ,nterest ,nterest Rate on Deposits: /a!ings *eposits /pecial -otice *eposits (/T*) 2i7ed Deposit #4ime Deposits' a) 7 (three) (onths b) > (si.) (onths c) 2(one) Gear d) 6(two) Gears and abo!e e) 7(three) ears C.C=A >.C=A 26.C=A 26.C=A 26.C=A 26.C=A 26.C=A

TableE Interest rate on deposits

2C

O"ening of $ccount
It includes the following stagesE

*ccount opening procedure 0lassification of customers

$ccount o"ening "rocedure

Documents needed for each *ccount Separately: 0urrent8Saving Deposit *ccounts: 13 Savings *ccounts: 13 *n e7isting 0urrent *ccount holder of the Bank9 3 !3 3 0urrent *ccount: 6roprietorship 2irm: a) -ame of authorized persons+ designation+ specimen+ signature Card. b) Trade &icense. c) @assportD Chairman Certificate. 6artnership 2irm: a) Account must be opened in the name of the firm. b) The form should describe the names and addresses of all the partners. c) Trade &icense from cit corp. is needed. d) @artnership *eed and letter of authorit is achie!ed Limited 0ompany: a) Certificate of incorporation. b) Certificate of Commencement of Business. c) 5orm HII. d) (emorandum of Association. e) Article of Association. 2> 6hotocopy of 6assport 8 0hairman80onditioner 0ertificates3 41o # ' copied of 6assport si:e photograph+

f) @ower of attorne . g) Resolution of the Board of *irector s authorizing opening of an account. Societies80lu$8*ssociations: 3ther than abo!e#mentioned common documents resolution of who will operate the account must be noted. *pplicant fills up the application in the prescri$e form <e is re;uested to fill up the specimen signature 0ard *n account holder needs introduction 2rom an account holder3

4he authori:ed officer scrutini:es the *fter depositing cash9 introduction and check$ook is issued e7amines the document 5igE 5low Chart of Account 3pening @rocedure ,ssuance of deposit slip and the deposit must $e made in cash

Classification of custo ers

It includes the followingE a) Indi!idual (personal) b) @roprietorship (/ole traders) c) @artnership firms (Registered or %nregistered) d) 8oint stoc" Companies (@ri!ate &imited companiesD@ublic ltd.) e) @ublic /ector Corporations f) (unicipalitiesD(unicipal Corporations D&ocal Bodies etc. g) ClubsD/ocietiesDAssociationsD/choolsDCollegesD %ni!ersities etc. h) :.ecutorsDAdministrators i) Trustees 1) Illiterate persons ") Constituted Attorne and 0age :arners. ,ssue of 0he;ue Book ,ssue of 2resh 0heck $ook

2<

5resh chec"boo" is issued to the account holder onl against requisition on the prescribed requisition slip attached with the chec"boo" issued earlier+ after proper !erification of the signature of the account holder personall or to his dul authorized representati!e against proper ac"nowledgment. Requisition /lip 5illed %p @roperl Along 0ith The Chec"boo" -umber Ban"er Issuance -ew Cheque Boo" If :!er .Thin" In The Right 5orm

Banker =erifies 4he Slip

:nter The -ew Cheque Boo" -umber In The Register Boo" Against The /pecific Customer4s -ame 5igureE Issuance of fresh Chec" Boo" B3 ,ssue of Duplicate check $ook *uplicate chec"boo" in lieu of lost one should be issued onl when an ADC holder personall approaches the Ban" with an application &etter of Indemnit in the prescribed @erforma agreeing to indemnif the Ban" for the lost chec"boo". 5resh chec" Boo" in lieu of lost one should be issued after !erification of the signature of the Account holder from the /pecimen signature card and on realization of required :.cise dut onl with prior appro!al of manager of the branch. Chec" series number of the new chec"boo" should be recorded in ledger card signature card as usual. /eries number of lost chec"boo" should be recorded in the stop pa ment register and caution should be e.ercised to guard against fraudulent pa ment. *ccount 4ransfer The customer submits an application mentioning the name of the branch to which he wants the account to be transferred. )is signature cards+ ad!ice of new account and all rele!ant documents are sent to that branch through registered post with ac"nowledgment the balance standing at credit in customers account is sent to the other branch through Inter Branch Credit Ad!ice (IBCA). 0losing of *ccount 29

The following circumstances are usuall considered in case of closing an account or 1ustif ing the stoppage of the operation of an accountE -otice gi!en b the customer himself or if the customer is desirous to close the account. *eath of the customer. Customer4s insanit and insol!enc . If the branch finds that the account is inoperati!e for a long period. If ,arnishee 3rder is issued b the Court of &aw on the ban" branch.

A customer can close out his ADC at an time b submitting an application to the branch. %pon the request of a customer an account can be closed. After recei!ing an application from the customer to close an Account+ the following procedure is followed b a ban"er. The customer should be as"ed to draw the final cheque for the amount standing to the credit of his aDc less the amount of closing and other incidental charges and surrender the unused cheque lea!es. The aDc should be debited for the account closing charges etc. and an authorized officer of the Ban" should destro unused cheque lea!es. In case of 1oint aDc the application for closing the aDc is to be signed b all the 1oint holders e!en if the ADC# is operate b either of them. The last chec" for withdrawal of the a!ailable balance in the ADC is to be signed b all the 1oint holders.

Local Re ittance De"art ent -Banking for 0ommon 6eople/ %B& has its branches spread throughout the countr and therefore+ it ser!es as best mediums for remittance of funds from one place to another. This ser!ice is a!ailable to both customers and non#customers of the ban". The department+ which pro!ides the facilit + is "nown as local remittance department. 2unctions of the Local Remittance Department The following are the main functions performed b the credit departmentE (a) Issuing B @a ment of *emand *raft. (b) All related correspondence with other Branches B 2?

(c) Compliance (d) Balance of *.*. pa able B *.*. @aid with ad!ice (e) Attached to /ancha a @atra and 0age :arners *e!elopment Bonds. (f) @a ment of Incoming TT. (g) Issuing+ encashment of @a 3rder and maintenance of record and proof sheet. (h) Issuing and encashment of all "inds of /ancha a @atras and wage :arners *e!elopment Bond. (i) All related statements B correspondences with Bangladesh Ban" B other Branches. (1) Issuance of &ocal *rafts (") Issuing and encashment of BC*. (l) All related correspondences. (m) Issuing of 3utgoing TT. (n) Issuance of &ocal *rafts. (o) Issuance of T.T. ICA. IBCA B IB*A 4ransaction 4ypes 0ollection of 0he;ue %p to TI. 6C+=== J .2CA+ (inimum TI. 2=. Abo!e T".6C+ ===# 2+==+===+ J .2CA (inimum T".C=. Abo!e 2+==+===#C+==+=== J .2=A+ (inimum T".2C=. Abo!e C+==+=== J .=CA+ (inimum T".>==#(a.imum 2+6==

6=

Dank 0harge 2or ,ssuing DD J .2CA (inimum T". 6C. 0ancellation of 6ay order %p to T". C==##############T".2=. Abo!e T". C==#############T".6C. Rate of "ovt3 E7cise Duty for a financial year T".2=+===#######################################T".= T".2=+===#2+==+===##########################T".26=. T".2+==+===#2=+==+===######################T".6C=. T".2=+==+===#2+===+===#####################T".CC=. T".2+===+===#C+===+===#####################T".6C==. Abo!e T".C+===+===#########################T".C===. Remittance of 2und An one of the following methods ma ma"e remittance of funds from one place to another. 2) 6) 7) Telegraphic Transfer (T.T) *emand *raft (*.*) @a order (@D3)

4elegraphic 4ransfer #434' It is an order from the Issuing branch to the *rawee Ban" DBranch for pa ment of a certain sum of mone to the beneficiar . Tele.D Telegram sends the pa ment instruction and funds are paid to the beneficiar through his account maintained with the *rawee branch or through a pa order if no aDc is maintained with the drawee branch. 434 ,ssue 6rocess: 2. The Applicant fill up the rele!ant part of the prescribed Application form in triplicate dul signs the same and gi!es it to the Remittance *epartment.

62

6. Remittance *epartment will fill up the commission part meant for Ban"Ks use and request the Applicant to deposit necessar cash or chec" at the TellerKs Counter. 7. The Teller after processing the Application form+ Cash or chec" will !alidate the Application form .The first cop is treated as *ebit Tic"et while the second cop is treated as Credit Tic"et and sent to Remittance *epartment for further processing. The third cop is handed o!er to the applicant as customer4s cop . ;. Remittance *epartment will prepare the Tele.DTelegram in appropriate form+ sign it and send it to the tele. 3peratorD*ispatch *epartment for transmission of the message. C. Remittance *epartment will prepare the necessar ad!ice >. *ebit Ad!ice is sent to the client if client4s aDc is debited for the amount of T.T <. *ebit tic"et is used to debit the clientKs account if necessar . 9. T.T Confirmation Ad!ice is sent to the *rawee Branch. ?. Credit Tic"et (6nd cop of the Application 5orm) is used to credit the %B& ,eneral Accounts. $' *ccounting Entry *r. Cash DclientKs ADC Cr. %B& ,eneral ADC Cr. Communication. Cr. Commission. c3 6ayment of 43 4>s: 3n receipt of T.T pa ment the *rawee branch passes Instructions the following entries if the T.T is found to be correct on !erification of Test -umber. 66

i. *r. %B& ,eneral ADc Cr. Remittance Awaiting *isposal# T.T @a able ADc ii. *r. Remittances Awaiting *isposal #T.T @a able ADc Cr. clientKs Account D@.3. ADC. In case the beneficiar does not maintain an aDc with the *rawee branch a @.3 is issued in fa!or of the pa ee and sent to his ban"erDlocal address as the case ma be. :!er branch maintains a prescribed T.T. @a able Register. All the particulars of T.Ts are to be properl recorded in this Register dul ad!iceD authenticated. A separate t pe of T.Tconfirmator ad!ice is sent to the *rawee branch on the same da . 3n receipt of the T.T Confirmator T.T are !erified with reference to particulars alread pa able Register. The Confirmator ad!ises are "ept attached with the relati!e Tic"et -o further responding entr is required to be passed on receipt of such confirmation cop . 3n pa ment of T.T the particulars are to be incorporated in the :.tracts of Responding *ebit entries as usual and sent to )3RC. confirmation cop of Telegram from the Issuing branch+ the particulars of the recorded in the T.T

67

Demand Draft #D3D' &ocal *raft is an instrument containing an order of the Issuing branch upon another branch "nown as *rawee branch+ for pa ment of a certain sum of mone to the pa ee or to his order on demand b the beneficiar presenting the draft itself.

Application submitted to Branch

Issuing Branch prepares ** 5igE 5low Chart for a **

Branch gi!es ** to @urchaser

@urchaser sends ** to @a ee

@a ee @resents ** to Branch

@a ing Branch pa s the amount

6;

a3 6rocess of ,ssuing a Demand Draft: 2. ,et the Application form properl filled up and signed b the applicant. 6. Complete the lower portion of the Application 5orm meant for Ban"Ks use. 7. Calculate the Total ta"a amount pa able including Ban"Ks commission Dcharges etc. ;. If a cheque is presented for the pa ment of the *.* officer should get the chec" dul passed for pa ment b the competent authorit and record the particulars of *.* on the bac" of the cheque. C. If the purchaser desires his account with the branch to be debited for the amount of *.* the officer should get the ADC. holder4s signature !erified properl + from signature card on record of the branch and debit clientKs aDc for the total amount including commissionD charges etc. >. If cash deposit is desired+ request the purchaser to deposit the mone at the Teller4s Counter. The Teller+ after processing the Application 5orm+ Cash or Cheque+ will !alidate the Application form. 9. The first cop of the Application form is treated as *ebit Tic"et while the second cop is treated as Credit Tic"et and sent to Remittance *epartment for further processing. The third cop is handed o!er to the Applicant as customerKs cop . ?. :ach branch maintains a running control serial number of their own for issuance of *. *. on each *rawee branch. This control serial number should be introduced at the beginning of each ear+ which will continue till the end of the ear.

6C

$3 D3D ,ssue Register: The Remittance *epartment maintains prescribed *.* Issue Register. All the required particulars of all *. *s issued should be entered in that Register dul authenticated. /eparate folios are opened for each *rawee Branch. 0hile issuing local *rafts of TI.C=+ ===D# and abo!e+ branches shall put a test number in R:* I-I on the upper portion of the drafts so that the *rawee branch can immediatel ma"e pa ment of the *.* on presentation after getting the Test agreed+ if otherwise found in order. c3 ,ssue of Duplicate Draft: *uplicate *.* should not normall be issued unless thoroughl satisfactor e!idence is

produced regarding loss of a draft. If the *.* is reported lostDstolen+ a duplicate draft ma be issued b the Issuing branch on receipt of a written request from the purchase. d3 0ancellation of Demand Draft #DD': The following procedure should be followed for cancellation of a *.*E 2. The purchase should submit a written request for cancellation of the *.* attaching therewith the original *.*. 6. The signature of the purchase will ha!e to be !erified from the original application form on record. 7. (anager D/ub #(anagerKs prior permission is to be obtained before refunding the amount on cancellation. ;. @rescribed cancellation charge is to be reco!ered from the applicant and onl the amount of the draft less cancellation charge should be refunded. CommissionD@ostage etc. charge reco!ered for issuing the *.* should not be refunded. C. The *.* should be affi.ed with a stamp Cancelled under proper authentication and the authorized officerKs signature on the *.* should also be cancelled with

6>

Red in but in no case should be torn. The cancelled *.* should then be "ept with the rele!ant Tic"et. >. The original entries are to be re!ersed gi!ing proper narration. An IB*A for the cancelled *.* should be issued on the *rawee branch. <. Cancellation of the *.* should also be recorded in the *.* Issue Register. e3 6ayment of D3D: 2. 3n receipt of Credit Ad!ice (IBCA) from the Issuing branch the following responding entries are then be passed b the *rawee branch. *r. %B& ,eneral ADc Branch Cr. Remittance Awaiting *isposal *.* pa able ADc :.tracts of responding entries are to be sent to )3RC on the same da . 6. 0hen a *.* is presented for pa ment at the pa ing branch its details are to be carefull e.amined with references to the following pointsE a. 0hether the draft is drawn on their branch. but to be paid to his account with a ban". b. Two authorized officials of the Issuing branch must ha!e signed draft. Their signatures are to be !erified from specimen signature boo" let to be sure that the draft is genuine. The !erifier should put his initials in red in" against the authorized signatures in the draft. c. :ndorsement on the bac" of the draft must be regular in case the draft is presented through clearing. The amount of the draft should not e.ceed the amount protect graphed Dwritten in red in" on the top of the draft. 0hether the draft is

crossed or not Amount of a crossed draft is not paid in cash to the pa ee

6<

d. The pa ee is to be properl identified in case of cash pa ment. The particulars of the draft i.e. the draft number date amount and the name of pa ee+ should be !erified from the *.* pa able Register. 7. 3n pa ment the *.* is affi.ed with the branches @aid stamp and signatures there on are cancelled with red in". The date of pa ment is recorded in the *.* pa able Register necessar accounting entries are also passed and recorded in the boo"s of Accounts
Receives .oney DD 6resented

,ssuing Branch

Sends *dvice of Dra1ing

6aying Branch

,ssues DD

6ayment of DD 5ig E 5low Chart of ** @a ment '4 A!!o( t# 2 E t$#es: 0ith IBCAE *r. Remittance Awaiting *isposal *.* pa able aDc Cr. clientKs AccountDTellerKs Cash. 0ithout IBCAE A. *r. *.* paid without Ad!ice aDc Cr. ClientKs aDcDTellerKs Cash. B. After recei!ing the IBCA I. *r. %B& ,eneral ADc Cr. Remittances Awaiting *isposal # *.* pa able ADc ii. *r. Remittances Awaiting *isposal # *.* pa able ADc Cr. *.* @aid without Ad!ice ADc. 69

Pay Order a3 6ay 5rder ,ssue 6rocess: 5or issuing a pa order the client is to submit an Application to the Remittance *epartment in the prescribed form (in triplicate) properl filled up and dul signed b applicant. The processing of the pa order Application form+ deposit of cashDcheque at the TellerKs counter and finall issuing an order etc+ are similar to those of processing of *.*. Application. As in case of *.* each branch should use a running control serial number of their own for issuance of a pa order. This control serial number should be introduced at the beginning of each ear+ which will continue till the end of the ear. A fresh number should be introduced at the beginning of the ne.t calendar ear and so on. $3 0harges: 5or issuing each pa 3rder commission at the rate prescribed b )ead 3ffice is realized from the client and credited to Income ADc as usual. c3 Entries: *r. TellerKs Cash DClientKs aDc #########################################################*ebit Cr. pa 3rder aDc. ###################################################################### Credit Cr. commission aDc. ####################################################################Credit d3 Refund of 6ay 5rder: The following procedure should be followed for refund of pa order b cancellationE 2. The purchase should submit a written request for refund of pa order b cancellation attaching therewith the original pa order. 6. The signature of the purchaser will ha!e to be !erified from the original application form on record. 7. (anagerD /ub#managerKs prior permission is to be obtained before refunding the amount of pa order cancellation.

6?

;. @rescribed cancellation charge is to be reco!ered from the applicant and onl the amount of the pa order less cancellation charge should be refunded. Commission recorded for issuing the pa order should not be refunded. C. The pa order should be affi.ed with a stamp KKcancelledKK under proper

authentication and the authorized officerKs signature of the pa order should also be cancelled with R:* in" but in no case should be torn. The cancelled pa order should be "ept with the rele!ant Tic"et. >. The original entries are to be re!ersed with proper narrations. <. Cancellation of the @a 3rder should also be recorded in the pa order Issue Register.

Cash De"art ent

-2ront 5ffice 5peration/ The cash department deals with all t pes of negotiable instruments+ cash+ and other instruments and treated as a sensiti!e section of the ban". -ow a da in modern ban"ing cash department is also "nown as front office. 2unctions of the Department The following are the main functions performed b the departmentE (a) /hall be responsible for all Cash B Cash Items related matters including record "eeping of the information4s recei!ed regarding cash remittances (b) /hall super!ise the Cash Remittance under direct guidance of /ub#(anager (c) /hall be responsible for an receipts and pa ments as per circular issued from time to time. And "eeping liaison with the Bangladesh Ban"+ Cash department. 0ash 6ayment

7=

Cash pa ment of different instruments is made in the cash section. @rocedure of cash pa ment against cheque is discussed under elaboratel . Cash pa ment of cheque includes few stepsE 2) 5irst of the entire client comes to the counter with the chec" and gi!e it to the officer in charge there. The officer chec"s whether there are two signatures on the bac" of the cheque and chec"s his balance in the computer. After that the officer will gi!e it to the cash in charge. 6) Then the cash in charge !erifies the signature from the signature card and permits the officer in computer to debit the client4s account b gi!ing posting. A posted seal with teller number is gi!en. 7) Then the cheque is gi!en to the teller person and he after chec"ing e!er thing as"s the drawer to gi!e another signature on the bac" of the cheque. ;) If the signature matches with the one gi!en pre!iousl then the teller will ma"e pa ment "eeping the pa ing cheque with him while writing the denomination on the bac" of the cheque. C) Cash paid seal is gi!en on the cheque and ma"e entr in the pa ment register. There are few things that shall be scrutinized and chec"ed before ma"ing pa ments. i. ii. iii. i!. -ame of the drawer Account number /pecimen signature The !alidit of the cheque and ma"e it sure that it is not post dated or undated. !. The amount in words and figures are same.

72

0ash Balance calculation The calculation is done b the officer in charge of cash section and then manager or authorized officer will chec" the balance and sign in the cash balance boo". The balance is maintained in the balance boo". 3pening balance of current da is the closing balance of the pre!ious da . Total recei!e of the current da is added with the opening balance and total pa ment is deducted for calculating the closing balance or cash balance. 0learing Department -0learing <ouse 5peration/ According to the Article 7<(6) of Bangladesh Ban" 3rder+ 2?<6+the ban"s+ which are the member of the clearinghouse+ are called as /cheduled Ban"s. The scheduled ban"s clear the chouse drawn upon one another through the clearinghouse. This is an arrangement b the central ban" where e!er da the representati!e of the member ban"s gathers to clear the chouse. Ban"s for credit of the proceeds to the customers4 accounts accept Chouse and other similar instruments. The ban" recei!es man such instruments during the da from account holders. (an of these instruments are drawn pa able at other ban"s. If the were to be presented at the drawee ban"s to collect the proceeds+ it would be necessar to emplo man messengers for the purpose. /imilarl + there would be man chouse drawn on this the messengers of other ban"s would present ban" and them at the counter. The whole process of collection and pa ment would in!ol!e considerable labor+ dela + ris" and e.penditure. All the labor. Ris"+ dela and e.penditure are substantiall reduced+ b the representati!es of all the ban"s meeting at a specified time+ for e.changing the instruments and arri!ing at the net position regarding receipt or pa ment. The place where the ban"s meet and settle their dues is called the Clearinghouse.

76

)unctions of the De"art ent

The following are the main functions performed b the departmentE a) b) c) d) @ass outward instruments to the Clearing#)ouse. @ass inward instruments to respecti!e department. Return instruments incase of dishonor. @repare IBCA or IB*A for the respecti!e branch and )3. *ccounting Entries of 0learing Department The following entries are gi!en if the cheques are honored+ 0ustomer *80 ????????????????????????De$it @BL "eneral *80 ?????????????????????????0redit %B& @rincipal Branch clears its cheques through the )ead 3ffice as well as the cheques of other branches+ because it is onl permitted. The other branches send the instruments through I.B.*.A %B& @rincipal Branch acts as an agent in this case. 5or this concern branch gi!es the following entries+ @BL "eneral *80??????????????????De$it 0ustomers *80????????????????????????????0redit If the instrument is dishonored+ the instrument is returned to the concerned branch through I.B.*.A. along with the following entries+ Incase of return(5or Inward instrument) @BL "eneral *80 ???????????????????? De$it 0ustomers *80 ???????????????????????????????0redit3 In case of return(5or 3utward instrument) 0ustomer *80 ?????????????????????????De$it @BL "eneral *80???????????????????????????0redit3 In case of returning an instrument the respecti!e officer usuall loo"s for following reasons+ Account closed Insufficient fund -ot arranged for 77

@a ment stopped Refer to drawer :ffects not cleared ma be presented again Amount in words and figures differs *rawer4s signature differs Alteration require drawer4s full signature (utilation requires drawers confirmation Cheque post dated out of date *ate incompleteDmissing @a ee4s endorsement requireD irregular @a ee4s endorsement requires ban" confirmation Clearing house stamp missing -ot drawn on %B& @resent through ban"er.

If the chec" is dishonored due to insufficienc of funds+ %B& charges TI. C=D# as penalt .

7;

Bills A 0he;ue 0ollection Chec"s+ drafts etc. are drown on ban" located outside clearing house are sent for collection. @rincipal Branch collects its client4s abo!e#mentioned instruments from other branches of %B& and branches other than %B&. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of in ward bills customers account is debited for this purpose. /o it place dual role as followsE i) Collecting Ban"er ii) @a ing Ban"er. There is one officer wor"ing o!er des" in this department. 2unctions of the Department The following are the main functions performed b the departmentE a) b) c) d) @reparing of 3utward and Inward Collection Item. Inter#Branch Transfer. Batch posting and chec"ing as and when required. 3ther wor"s as and when require. *pplica$ility of 0ollection 0ollection is done 1henE (i) @a ing Ban" is located out side *ha"a Cit . (ii) @a ing Ban" is other branches of %B& situated inside *ha"a Cit . 6aying Bank is 5utside Dhaka 0ity Collection department of @rincipal Branch+ %B& sends outward bills for collection (3BC) to the concerned pa ing ban" to get inter Ban" Credit Ad!ice (IBCA) from pa ing Ban". If the pa ing ban" dishonors the instrument+ the same is returned to principal Branch. #ii'4he 6aying Bank of their 51n Branches ,nside Dhaka 0ity Collection *epartment sends transfer deli!er item to other branches of same ban" situated inside *ha"a Cit . %pon recei!ing IBCA customer4s aDc is credited. 7C

Daily 4ask The routine dail tas"s of the Accounts *epartment are as followsE 2.Recording the transactions in the cashboo". Recording the transactions in general and subsidiar ledger. 6.@reparing the dail position of the branch comprising of deposit and cash. 7.@reparing the dail /tatement of Affairs showing all the assets and liabilit of the branch as per ,eneral &edger and /ubsidiar &edger separatel . ;.(a"ing pa ment of all the e.penses of the branch. Recording inters branch fund transfer and pro!iding accounting treatment in this regard. C.Chec"ing whether all the !ouchers are correctl passed to ensure the conformit with the LActi!it Report4M if otherwise ma"ing it correct b calling the respecti!e official to rectif the !oucher. >.Recording of the !ouchers in the Noucher Register. @ac"ing of the correct !ouchers according to the debit !oucher and the credit !oucher. 6eriodical 4ask The routine periodical tas"s performed b the department are as followsE 2. @reparing the monthl salar statements for the emplo ees. 6. @ublishing the basic data of the branch. 7. @reparing the wee"l position for the branch which is sent to the )ead 3ffice to maintain Cash Reser!e Requirement (C.R.R) ; . @reparing the monthl position for the branch which is sent to the )ead 3ffice to maintain /tatutor &iquidit Requirement (/.&.R) C. @reparing the wee"l position for the branch comprising of the brea" up of sector wise deposit+ credit etc. >. @reparing the wee"l position for the branch comprising of denomination wise statement of cash in tills. @reparing the budget for the branch b fi.ing the 7>

target regarding profit and deposit so as to ta"e necessar steps to generate and mobilize deposit. <. @reparing an L:.tract4 which is a summar of all the transactions of the )ead 3ffice account with the branch to reconcile all the transactions held among the accounts of all the branches. 0lients> services -o. of clients of the branch are increases. Branch alwa s well concern no. 3f clients and their ser!ice le!el. All the people of the branch ta"e their seats before 2C minutes of starting wor"s and not go out with out authorit permission or clients presence. Cash recei!ed and pa ment are made !er swift for the clients remittance+ both local and foreign+ bills collection and pa ment are swift alwa s cautious about customer seating arrangements+ good beha!ior with entertainment to customer+ quic" issuing of *+ *+ T.T.@.3.+ (.T. quic" clearing+ forwarding+ statements prepared for clients.>=A of customer has reliabilit of its ser!ices. 0lients> satisfactions Branch has achie!ed significant customer satisfaction through its dedicated ser!ices. Customer response regarding different factors of satisfaction is enclosed where shows that a!erage C>A of the customer li"e the branch for good qualit of ser!ices. 3pinion about location+ decoration and surroundings of the branchM Branch has rich decoration (67A)+ +surroundings of the branch also goods(7< A)+ customer somehow satisfied with technolog + s"illed people+ deli!er of ser!ices (7CA) but customer are not feel con!enience location.(CA). Branch charge+ commission+ interest+ other charges are also fair for customer (<CA). branch has good reputation in the mar"et (;CA)+ and customer are confident alwa s able on its ser!ice reliabilit (><A). In response of the answer of question t pes of ser!ice customer choice in this branch it shows that >=A+ customer li"e foreign business ser!ices. In response to the answer of question customer come for ban"ing ser!ices it shows that C=A customer come at noon+ C9A customer come beginning and end of the months for ser!ices. /o wor"load become much at noon+ and beginning and end of the month. In res. pones of the answer of question customer problems of the branch it shows that ma1or problem of the branch is no par"ing facilit for customer (<=A). 5ew customers are not feel con!enience location of 7<

the branch (6CA) .In response to the answer of competiti!e situation of the branch it shows that branch are alwa s better than competitor in terms of good ser!ices+ qualit of ser!ices+ ban" charges+ s"illed staff+ friendl with customer+ but has low competiti!e ad!antages in modern technolog with some up to date li"e standard chartered+ -CC+ one ban" and others. /uggestion from customer for future impro!ement+ new ser!ices+ credit cards+ suitable location+ mone automation ser!ices+ read cash+ car par"ing facilit for customers+ attracti!e decoration+ quic" deli!er of ser!ices. .otivation of the Employee (ost of the emplo ees are satisfied with management practices+ incenti!e+ bonus+ wor"ing en!ironment of the branch. But few of them ha!e argument about wor"ing loads+ wor"ing hours of the branch. The ha!e to wor" late hours with out an o!ertime+ incenti!e. /ome of them ha!e argument about training and human de!elopment. The need training to adapt with technolog that ban" has introduced# new wa of writing **+ (T.TT.@.3. And other ad!ice. /ome of the emplo ees e.press opinion about changing of the branch and impro!ing their wor"ing en!ironment. (ost of emplo ees are committed to wor" more if the authorit implement new pa scale for them. In response of the questionnaire concerned with emplo ee feelings it shows that ?=A of the people feel !er good in the branch 7=A people dissatisfied with branch location and h gienic en!ironment. ;=A people loss their interest due to high wor"ing loads and long duration of wor"s. >=A people are not satisfied with their present remuneration. According to them their pa scale+ incenti!e are not competiti!e. 9=A people claim more increment bonus+ and suitable location of the branch. 2=A people sa teamwor" are not properl wor" here+ due to management discriminate attitude towards them. >=A people recommended for modern technolog + with training for impro!ing their s"ills and reduce their wor"ing loads.

79

.aBor 6ro$lem ,n "eneral Banking @roblem in general ban"ing arises while issuing and responding different t pes of *.*+ (.T+ and @.3. T.T+ /C.&/C+ *.*. IB@+ *.*.@. due to different between actual amount and written amount in those botchers. This problem most repeated occurs in general ban"ing for misunderstanding of written amount or not consciousl read the amount in words in ad!ice. Another problem is while issuing and responding of (.T+ T+ T+ and same message are sending from different branch. These happen due not use the seal of message confirmation b telephone. Then it needs to send se!eral message and much hazards occurs in reconciliation. Another problem occur due to not getting of ad!ice of (t.+ T+ T+ ** from different branch. And ma"ing schedule for reconciliation is not possible for head office. Another problem occur in clean cash when so man Boucher ma attach with other categories. .anagement efficiency of the Branch (anagement of the branch is !er efficient. *iscipline is strictl followed in all acti!ities of the branch. (anagement alwa s followed ban"s norms+ culture+ and ethics. (anagement immediatel implements an circular from head office+ Bangladesh ban"s+ and finance ministr that appropriate for them. An t pes of new technolog + new method of written report+ submission of statement immediatel implement in the branch. Branch manager alwa s concern his duties and responsibilit . Alwa s he obser!es all the officers wor"s in front of their table. In case of an t pes of error in the wor"s b an officer he immediatel ta"e measure to rectif it. Alwa s concern following of ban"ing guidelines in all ban"ing acti!ities. )e alwa s concern about customer satisfactions well as entertainment of the !aluable clients. In case of an complain form customer in an ban"ing ser!ice he accept it and rectif . Alwa s ta"e suggestion from the clients for their future satisfaction. (anager also conscious about emplo ee satisfaction as well as their claims and argument. And tr to gi!e appropriate solution of their problem. )e alwa s conscious about building teamwor" among them. In case of an emplo ees absence he fill the gaps b other officers so that an official wor"s are not pending. (anagers directl obser!e performance of the officers and report them to the higher authorit for promotion. )e also concern who are non#performer and ta"e appropriate measure for them. 3fficial discipline are strictl followed+ no emplo ees and officer cannot go out of 7?

office without permission of manager. :mplo ees ha!e to wear official dress+ present in their des"+ until finished of the official wor"s. In case of an disobe of official discipline immediatel actions are ta"en regarding him. (anagement also concern h gienic wor"ing en!ironment+ such as pure drin"ing water+ canteen for lunch+ entertainment for the staff+ neat and cleanness of the branch+ toilet bathroom facilit + pra ers place for the people. And alwa s tr to impro!e branch en!ironment. Loans and advance of @ttara Bank at Catra$ari $ranch Categories of loans offered b the branch

Agriculture &arge and medium scale industries :.port 3ther commercial lending (1ute and fertilizer) /mall and cottage industries Consumer &oan @ersonal loan 3thers

a) )ousing loans b) Residential c) Commercials d) Transport e) Cold storage f) Bric" field g) ,old loans h) Against wor" orders i) Against wor" 5*R 8) &oans against sancha patra ") loans against 0:B*+ ICB+ unit certificate l ) loans against life insurance polic ") 3thers special progra 0lassified loans and provision @n&recovered loans

,rregular loans

Su$.aBor standard findings loans

Dou$tful de$t

Bad de$t

&oans are un#reco!ered as these are sanctioned against improper documents. &oans are gi!en as the order of direct higher authorit . ;=

&oans are not properl utilized+ loans was cautioned for one sector but used in 3ther sector. &ac" of sufficient interest. 5inancial loss in business of the creditor. &oans are gi!en without proper inspection of pledged assets or h pothecation. &oans are un#reco!ered due to !alue of the collateral assets are not properl assessed. (a.imum loans are cash credit instead of collateral credit. &oans are un#reco!ered due to present go!t. polic has lac" ness to ta"e legal action against loan defaulter. &oans are sanction#limited sector. (a.imum loans are c.c. D abnormal mone e.cess of c.c. &oans are sanctioned against discrepant documentsD documents are not properl e.amined. &oans are gi!en loans are gi!en without following Bangladesh ban" B.@.R.*. Creditor is not a!ailable found in the countr .

0redit management and recovery of classified loans As classified loans increase pro!ision rate+ create ad!erse effect on in!estment .in order to accelerate the in!estment+ reduce inflation and to attain target growth rate the following guideline ha!e to be followE

%nderta"ing step for reco!ering of all classified mone . @roperl audit creditor financial situation+ willingness of repa ment of loans mone + creditor sources of income propert . Ban" must ta"e urgent measure for reco!er of loan mone . :.amining properl all documents and charges documents. And submitting to harm dept. ta"es immediate legal action b e.amining the accurateness of all the documents and amended documents b the direction of head office. :mplo ing well#qualified ad!ocates for %- reco!ered loans mone collection against powerful and large amount creditor. Branch manager ha!e to be concern regarding quic" settlement of all suit cases+ in the case date ban" representati!e must present in the court and pro!ide information to the competent authorit . /trictl follow guideline of Bangladesh ban" while sanction loans. ;2

Ta"e accurate guarantee from the creditor so that creditor get no pro!isionD e!asion of not pa ban" due mone . Branch must achie!e annual and half earl budget target so that amount of classified loans ma be concern b higher authorit and ta"e appropriate action. Ban" ha!e to be set up a more strengthen RB( department. Branch manager ha!e to be directl consult with the *eput ,( of R B(. )ead office has to emplo ee a former *.C. as a legal ad!isor in order accelerated reco!er of classified loans. (easure must be ta"en all debts before the are being classified or before e.pir dates that loans not be classified. @recaution must be ta"en while appro!al of loans proposal in ).3. must 1ustif real situation of using loans granted loans+ incase e of an discrepant document or an claim against loans must inform ).3. for not sectioning loans to that applicant.

6recaution 1hile sanction of ne1 loans: Ban"er must anal sis borrower nature of business+ e.perience in business+ qualification+ and goodwill. Income sources+ profit from in!ested mone + abilit to repa ment of loans mone .

Before submit loans proposal ban"er must properl e.amine ris" and guaranteed !alue from loans. 0ith a !iew to properl assessed the proposal of the borrower ban"er must filled

application including borrower cash flow+ personal net worth+ description of mortgage assets+ assets and liabilit ratio and submit the proposal to )D3. Ban"er must be insuring that borrower mortgage propert is not pledged to other ban". 0hile sanction loans abo!e 2=#lac proposal must be submitted to Bangladesh ban" with details description of use of loans mone . &ending ris" must anal sis before sanction T". C= lac. Ban"er must inspect practicall while renews of loans with a !iew to Asses propert actual mar"et !alue. Sanctions of Loans and su$se;uent stagesE ;6

 All securit document and charges document must be properl completed. Ban"er must be ensured utilization of mone so that one sources sanctioned loan ma not other sources b the borrower. The ban" must inform an unwillingness of utilization of loans mone b the borrower and proper legal action must be ta"en against him. Ban" must rewarded and encourage those borrower who regular repa ment of loans and must gi!e preference to him for loan sanction. Branch must present report to Bangladesh B.R.@.*. About problem and performance of reco!er of classified loans+ legal action against those borrowers according to Bangladesh ban" B.R.@.*. circulation. Branch manager must be ensuring about obedience of all the abo!e steps.

)OR!I.% !,C#$%.!
)oreign e1change 5oreign :.change is !er lucrati!e B profitable in modern Ban"ing business. Its recognized as a wa of generating ma.imum profit with low in!estment. In other Ban"ing li"e ad!ance needs high capital in!estment. But foreign e.change required comparati!el low in!estment. In foreign business comple.it is high due to rapid change in technolog especiall for a ban" consists of so man branches dispersed in a wide region. The s stem is eas for a ban" to control rich in capital equipped with modern technolog concentrated in a small areas. Technolog is necessar to prepare quic" statement+ getting information+ preparing reports. -ow technolog is a turbulent in foreign e.change business. To sur!i!e in the competition a ban" has to adapt with this changes. 5or this it will require s"illed manpower+ on line ban"ing+ 6;# hours ban"ing ser!ices+ high capital in!estment. @roblems arise in foreign e.change for changes in economical and political business en!ironmental changes of the countr . Changes in e.changes rate+ change in currenc rate+ go!t. rules and regulations+ create problems while dealing in foreign business. /o it needs alwa s a conscious mind for successfull dealing in foreign business.

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#o2 to o"en an L3C 5or opening an &DC there must be a relationship between ban"er and customer through opening an account with the ban". 6rocedures for opening $ank accounts: 2. Before opening accounts clients must submit some paper a) In case of compan must submit annual financial statement b) In case of indi!idual must submit all t pes of income ta. pa ment certificate. 4here are three types of $ank account3 A) /a!ings account b) current account c) /T* d) 5*R a) 5or opening ban" account first ha!e to fill up application form b) Then ha!e to use to reference that ha!e e.isting relation ship with the ban" or all read maintain accounts with the ban". c) Two copies resent attest p.p. photograph. @ut three#specimen signature on the signature cards. d) 0rite in details amount of deposits and nominee person address relation with account holders who will hold the account in the absence of clients. e) :nclosed memorandum of associations and articles of associations along with form. 2. &DC must be open through current account. 6. @erquisite for opening &DC Have to take some charge documents from the party a) Trading licensee b) chamber of commerce certificate c) last fiscal ear income ta. certificate. 4hen the importer have to su$mit a proposal for opening L80 along 1ith&

&DC application. &icense no. @erforma in!oice. @art 4s application. &.c. set ;;

IRC. Insurance co!ered note.

L80 dealing officer have to properly check the 6erforma invoice Odescription of goods along with its price+ quantit + qualit + sources of e.port countr + mar"etabilit of goods+ shipment dates+ shipping da s+ bill of entr . @ac"ing list+ certificate of origin+ )./. code no+ Brand new. Certificate of ta.pa ers from ta. commissioner. Trade &icense from cit commissioner. Certificate from import and e.port registration department. (one receipt from insurance compan to reduce ris" e.port port to import destination. &DC Authorization form of the ban" contains IRC number+ shipping period+ description of goods date of l.Dc issues. # 2 cop for Bangladesh ban"s. 0ith name and address of dealer remittance+ l.Dc form+ description of goods+ in!entor name+ price for e.change clearance. 3ne cop for custom purpose+ another cop for office record. )ature of L80 2. Cash &DC (sight) 6. Cash &DC 7. Inland BDB &DC (sight) ;. 5oreign BDB &DC C. &Dc under AI* loans >. Import from :@P BDBD&DC) <. Import from :@P BDBD&DC) (sight) 9. Import from :@P ?CA/) &DC (/I,)T) ?. &DC %-*:R sta. 2=. 3thers

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* L80 is most suita$le under follo1ing conditions 0hen the importer is not well "nown. The e.porter selling on credit ma wish to ha!e the promise of pa ment. 0hen the importer doesn4t want to pa the e.porter until it is reasonable certain that the merchandise has been shipped in good condition. L80 procedure: The !arious steps in!ol!ed in the operation of credit are described as follows

The importer and e.porter ha!e contract before a &DC has been issued. The importer applies for a &DC from his ban"er "nown as the issuing ban". )e ma use his credit lines. The issuing ban" opens the &DC that is channeled through its o!erseas correspondent ban"+ "nown as ad!ising ban". The ad!ising ban" informs the e.porter of the arri!al of the credit. :.porter ships the goods to the to the importer or other designed place as stipulated in the &DC. (eanwhile the e.porter also prepares his own documents and collects transport documents or other documents from rele!ant parties. All documents will be sent to his ban"er+ which is acting as negotiating ban". -egotiation of e.port bills occurs when the ban"er agrees to pro!ide him with finance. In such case he obtains pa ment immediatel upon presentation of documents. If not the documents will be sent to the issuing ban" for pa ment or an appro!al basis in the ne.t step. *ocuments are sent to issuing ban"er reimbursing ban"+ which is a ban" nominated b the issuing ban" to honor reimbursement from negotiating ban" for reimbursement or pa ment. Issuing ban" honors to its underta"en to pa the negotiating ban" on condition that the documents compl with the &DC terms and conditions. Issuing ban" releases documents to the importer when the letter ma"es pa ment to the former or against the letter trust receipt facilities. The importer ta"es deli!er of goods upon presentation of the transport (usuall shipping documents). ;>

6arties involved in letter of credit 4he applicant: The applicant is the parties who generall approaches in order to issue the &DC. generall the applicant ids the e.porter who reaches an agreement with the e.porter before approach in the ban" to issue the &DC. 4he issuing $ankD The ban" issuing the &DC is "nown as issuing ban" and it is usuall the ban" with which the importer maintains an account. The issuing ban" underta"es an absolute obligation to pa upon presentation of documents. 4he advising $ank: The correspondent ban" sends the &DC is commonl referred to as ad!ising ban". The ad!ising ban" simpl ad!ises the &DC without an obligation on its part. )owe!er+ the ad!ising ban" shall ta"e reasonable care to chec" the apparent authenticit of the credit that it ad!ises. 4he $eneficiary: The beneficiar or e.porter is the part entitled to draw pa ment under &DC. The Beneficiar will ha!e to present the required documents to a!ail pa ment under &DC. 4he 0onfirming $ank: The confirming ban" confirms that the issuing ban" has issued a letter of credit. The confirming directl obligated on the credit to the e.tent of its confirmation and b confirming it acquires the right and obligation of an issuer. 4he negotiating $ankD The ban" that agrees to e.amine the documents under the &DC and pa tChe beneficiar is called the negotiating ban". T picall + the ad!ising ban" is nominated as the negotiating ban".

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Back to $ack L80 Bac" to bac" &Dc is mostl issued in Bangladesh. 0hen a beneficiar recei!es a letter of credit+ which is not transferable+ and he cannot furnish the goods himself+ he ma arrange with his ban"er to issue a second credit+ which is "nown as bac"#to#bac" &DC to supplier to suppl the goods. As both &DC co!er the same goods the bac" to bac" credit must be issued with identical terms to the muster &DC+ e.cept that the credit amount+ unit price if an are smaller. The e.pir date under the bac"#to#bac" credit is earlier while the latest shipment date ma ha!e to be ad!anced. The ban" issuing bac"#to#bac" credit will obtain repa ment through muster credit+ which is deposited to the issuing ban" of the bac"#to#bac" credit. The ban" must tr to maintain control of the documents and hold them after pa ment to the supplier pending receipt of its customer4s in!oices and present the documents itself for pa ment under the muster credit in fa!or of its customer. .ain $usiness of 2oreign e7change department The primar business of foreign e.change department of Barisal branch is to ma"e reimbursements and pa ments on behalf of the issuing ban". Besides acting as the correspondent ban" for reimbursing ban" or the pa ee ban"+ branch also ad!ice s negotiates+ and confirm letter of credits. Acting as the negotiating and confirming Barisal branch earns a commission+ which is a percentage of the total &DC amount. This @ercentage !aries depending on the ris" of non#pa ment b the importer. 3n the other hand branch earns a flat rate fi.ed commission when it acts as the ad!ising ban" as well as when it authorized to ma"e reimbursement on behalf of the issuing ban". Reimbursement made either to AC% *ollar account A(:H Calcutta+ or to %/F dollar account in A(:H -ew Gor". These reimbursements contribute to a ma1or portion re!enue of foreign e.change department.

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Sevice offered $y foreign e7change department of @ttara Bank at Catra$ari $ranch Barisal branch offered a wide ser!ices for its relation ships other ban" and clients both home and aboard. These. /er!ice are related to trade finance+ international pa ment+ in!estment+ trading ser!ices. 0redit items &etter of credit (&DC) negotiation &etter of credit (&DC) confirmation. &etter of credit (&DC) ad!ising. Reimbursement authorizations. @a ment instruction and :.port bills collections. 2oreign Remittances All t pes of &DC mone + student4s fees+ and other charges are sending to foreign countr through remittance. After negotiation between importer and e.porter+ getting all documents+ pa ments of goods are made to the e.porter ban" (ad!ising ban") from %./.A. Ame. ban". But must be arrangement with that ban". After entering the goods in the importer countr + getting bills of entr from the custom+ e.porter send all documents to the issuing ban". Issuing ban" then 1udge the accurateness of these documents and calculate total due with interest+ commission+ and other charges+ deduct amount of margin that was prepaid while opening &DC after preparing doc" statement#all the entr transaction is reported to a c#form to Bangladesh ban" where total foreign currenc record is maintain in commodit wise.

)on&credit items

2indings
0hile wor"ing on %ttara Ban" &imited+ 8atrabari Branch+ I ha!e attained a newer "ind of e.perience. After collecting and anal zing data I ha!e some findings. These findings are completel m personal !iew to research wor". %ttara Ban" &imited has lac" of strong super!ision for which loans are defaulted. %ttara Ban" &imited also hasn4t proper monitoring s stem.

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Branches are !er much enthusiastic to pro!ide more ser!ice to the clients. In!estment *i!ision is an efficient department. The are !er much prompt to gi!e decision to their !alued client. )ead 3ffice Credit committee sits regularl on wee"l basis. The ne!er "eep an things pending.

&ac" of good cooperation is identified among the wor" procedures and among the emplo ees of the ban"+ which results in lengthiness and ineffecti!e ser!ice. The emplo ees of the ban" cannot pro!ide effecti!e and efficient ser!ices to the customers because of lac" of computer facilit . The in!estment of the branch is too low in comparison to the total deposits of the branch. The Ban" has gi!en less emphasis on long#term financing. %ttara Ban" &imited has also shortage of efficient management information s stem. The emplo ees of this branch is not satisfied The manager of this branch is able to use all of its resources properl 0or"ing en!ironment of this branch is not so good

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Suggestion for the management for future improvement *e!eloping team sprit manager ha!e to ta"e details information regarding emplo ees i?ncome famil + no of children+ where the stud + personal problem+ claim of wor"s and ha!e to gi!e solution for them+ /o those in case of an officer absence the can run official wor"s cooperati!e with others and de!elop team sprit in their wor"s. .ake cautious to every employees O management ha!e ma"e cautious to e!er emplo ees that the to wor" with ma"e out+ and opening their e es and ear so that an mista"e can not occur in their wor"s. Reducing all unnecessary charges# manager has cautious about branch profit so unnecessar charges ha!e to reduce. 6roper utili:ation of $ranch resources# Branch has to use all resources+ such as capital+ funds+ deposit+ loans and ad!ances+ assets+ equipment properl . (anager has to use the wor" force properl + so that some of the emplo ees cannot spend their time idl while others do wor"s. 6lacement of officer to reduce 1ork loads# (anagement ha!e to write letter to head office for pro!iding them more qualified staff to increase efficienc up wor"s and reduce their labor. E& 0ash or ready cash services& In order to tac"le competition+ and speed up customer branch need to introduce new ser!ices+ such as read cash+ or q#cash li"e other pri!ate ban"# to increase customer satisfaction+ and no. 3f clients. As customer alwa s interested about new ser!ices li"e read cash that can reduce their time+ cost ris"+ traffic 1am. In read cash s stem the can with draw their mone from an branch where he intentioned+ not need ph sicall present that branch. Strictly follo1ed of $usiness ethics (anage ha!e to care about following of business ethics in all the acti!ities#not ta"e an gift from customer# in case of offer tactfull a!oid gift. of the branch. (odern technolog # management has to ta"e measure for arrangement of modern technolog to speed

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)ot pending of official 1orks# management ha!e to cautious about not pending of wor"s+ sending report to the head office accurate time+ sending ad!ice4s+ TRN to different branch to appropriate time+ quic"l response to audit report. Shift the $ranch in suita$le location As customer feels man disturbances to come here so the branch has to be shifted in a suitable location with par"ing facilit . ,mproving 1orking environment& As the branch has space limitation+ seating place+ so management ha!e to impro!e wor"ing en!ironment. Branch need separate place for officials and customer sa ing pra ers. Increasing deposits as branch deposits are comparati!el low than loans and ad!ance so branch need to ta"e measure to increase deposit through opening new clients account. <uman resources development (anagement alwa s has to emphasis on human resources de!elopment of the branch the ha!e not rel onl on few emplo ees. (anagement has to ta"e measure for emplo ee training for future impro!ement of their s"ills. E7panding service range and ,ncreasing $ranch assets Branch should e.pand ser!ices rangeM the should introduce new ser!ice that are not copied b the competitor as well as ser!ice offered b competitor ban". Branch ha!e to emphasis on increasing its own assets+ it should bu own building+ purchases more equipment+ and other assets to reduce e.tra charges. ,mplementation of )e1 6ascal As emplo ees has strong e.pectation about to implement of new pa e.pectations that new pa scale ha!e alread immediatel implement the new scale to increase their moti!ation le!el. scale. It is great design for them so management should

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.aking list of non performer of the $ranch /ome of the emplo ees who idl spend their time or bus other business branch need to ma"e of those non#performer and ta"e immediate action towards them such as suspend+ demotion+ transfer+ fine etc. Fork ethics and 0lient satisfaction :mplo ee of the branch has to be followed wor" ethic in all#official acti!ities. (anagement should alwa s wor" for their client satisfaction. The should ta"e all necessar arrangement for customer satisfaction through impro!ement of branch en!ironment+ location+ securit + par"ing facilit new ser!ice etc. 0ustomer retention (anagement ha!e to ta"e steps to retain customer. The should build a strong relationship with their e.isting customer so that the cannot swift awa to competitor ban". Because retention is si. time important than attention of new customer. E7panding investment $ase Branch should e.pand in!estment base+ the should not depend onl on limited sector of in!estment+ the should in!est all profitable sector to increase their profit and maintain growth le!el. Reducing $ank charges 1here necessary Branch should reduce charges for price sensiti!e customer especiall who transaction high !olume of business. Being more marketing oriented Branch has to ta"e more mar"eting oriented for success in future. The should ta"e strategic mar"eting plan to increase their profit and growth. A problem ser!ice organization face is that the ma be unaware of all the capabilities the ha!e. This is due to ban" intangible elements particularl human s"ills and aptitude. 3rganization fails to audit all the areas to manage the farm capabilit . This is because intangibilit of their capabilit .

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The particular range of ser!ices offered will be de!eloped in response to internal needs and e.ternal influences. Customer and user perceptions of product lines can often gi!e ser!ices mar"eter insight into wa s in which ser!ice product mi. should e.tended or reduced ser!ice product lines stretched or shortened. 05)0L@S,5) %ttara Ban" &td is the largest non#go!ernment organization throughout or this region. It is wor"ing mass people about aquaculture+ social welfare and income generation of this region. &eadership st le process accomplished half of its organizational acti!ities. :mplo ees are the lifeblood of organization and leadership st le are the wa to moti!ate and maintain that. 0or" mood is associated leadership st le in man senses. An appropriate leadership st le can bring the 1ob satisfaction among emplo ees. %ttara Ban" &td is such non#go!ernment organization is highl concerned with those factors of &eadership st le. The appl an effect ion st le to implement the organizational ob1ecti!es. 5rom appl an effecti!e st le to seen that effecti!e &eadership st le bring a great and fruitful success of the organizations.

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Bi$liography

Annual Report of %ttara Ban" &imited+ 6=2= Annual Report of %ttara Ban" &imited+ 6=22 Brochure of %ttara Ban" &imited. 0eb#www.uttaraban"#bd.com.bd. Ban" management+ 5ith :dition+ ,eorge ). )emple+ *onald ,. /imonson. Business Communication+ /i.th :dition+ Ra mond !. &esi"er 8hon *. @ettit+ 8R. Commercial Ban"ing O5ourth :dition+ b :dward 0 Reed D :dward I. ,ill. 5inancial Institutions (anagement+ A (odern @erspecti!e Anthon /aunders. (ar"eting (anagement+ Third :dition b Iotler B Armstrong. Ad!ertising B @romotion+ /i.th :dition B Belch B Belch.

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