Any academic course of the study has a great value when it has practical

application in the real life. Only a lot of theoretical knowledge will be of little
importance unless it is applicable in the practical life. So we need proper application
of our knowledge to get some benefit from our theoretical knowledge in our
practical life. Building a strong base of practical knowledge is possible through
thesis. When theoretical knowledge is obtained from a course of study, it is only the
half way of the subject matter. Thesis implies the full application of the methods and
procedures through rich acquired knowledge of the subject matter can be fruitfully
applied in our daily life, such a procedure of practical application is known as
internship.
The internship program is an integral part of the BBA program that all the students
have to undergo of Bangladesh University. The students are sent to various
organizations where they are assigned to one or more projects. At the end of the
program, the internships are required to place the accomplishments and findings of
the project through the writing of the internship report covering the relevant topics.
During this program, supervisor guides each student one from the university and
the other from the organization.
The case study is entitled General Banking System of Standard Bank Limited
(Mohammadpur Branch). As a student of BBA, this study will be more significant in
my practical life; I have worked at Mohammadpur Branch of Standard Bank Limited
to complete the internship program as an academic requirement.
Scopeof the work
In this internship period, there are lots of learning points. Mainly it helps to gather
knowledge about the General Banking activities, and others sector of Standard Bank
Ltd.
It consists of opening an account, issuing of cheque book, clearing activities; inter
branch transaction, closing of account, collection of bills, issuing FRD, Pay order,
and demand draft etc.
Objective of the Study
The objective of this program and the report can be divided into two types, such as
primary objectives and secondary objectives.
Primary Objectives
To gather an overall idea about general banking activities of Standard Bank Ltd.
To gain practical experience of Account Opening procedure of a bank.
Secondary Objectives
To identify the procedure of collection cash, cheque from customers.
To identify the procedure of issuing FDR, pay orders, cheque books and demand
draft. .
To identify the procedure of conducting clearing house activities.

To identify the procedure for collection of local and outward bills.

To recommend some suggestions to improve general banking activities.
Practical life; I have worked at Mohammadpur Branch of Standard Bank Limited to
complete the internship program as an academic requirement.
Limitations of the Study
During the course of practical training, I have faced some problems, which might be
termed as the limitation of the study. The problems which I faced are as follows:
Non availability of adequate data: It was very tough to collect data for making a
comparative study on the performance of the different area. So I was not able to
gather all information data for preparing a more in depth presentation.
Inadequate support from the administration: Since the company personnel of the
Standard Bank Ltd are very busy, in some case I could not communicate with them
properly where I required and they also could not help me.
Fears to disclosure: The administration was afraid to disclose the organizational
information. It was also constraint for the study.
Literature Review
What is Bank?
Bank is a financial institution that undertakes the banking activity ie.it accepts
deposits and then lends the same to earn certain profit.
Features of Bank:
Money Dealing
Acceptance of Deposit
Grant of loan and advances
Payment and withdrawal of deposits
Transfer of funds
Portfolio management
Foreign Exchange dealing
What is banking?
In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out
this money in order to earn a profit.
What is Remittance?
Remittance is any form of money transfer or payment done from your working
country to home country.

What is loan?
Loan is an amount of money advanced to a borrower, to be repaid at a later date,
usually with interest. Legally, a loan is a contract between a buyer (the borrower)
and a seller (the lender), enforceable under the Uniform Commercial Code in most
states.
Pay order?
Negotiable instrument (such as a draft) which instructs a payer bank to pay a
certain sum to a third party.
Overview of the organization
General Information
The Standard Bank Limited witnessed record achievement in its business
performance during the year 2011. The Bank was incorporated as a Public Limited
Company on May 11, 1999 under the Companies Act, 1994 and it achieved
satisfactory progress from its commercial operation since June 03, 1999. SBL
introduced several attractive products and services and extended loans and credits
to different sectors of the economy. Besides, the Bank has already introduced real
time on-line banking and it is now fully automated. Through all these myriad
activities, SBL has created a positive impact in the banking sector of the country
Vision
To be a modern Bank having the object of building a sound national economy and to
contribute significantly to the Public Exchequer.
Mission
To be the best private commercial bank in Bangladesh in terms of efficiency, capital
adequacy, asset quality, sound management and profitability.
Goals
Develop a realistic deposit mobilization plan.
Develop appropriate lending risk assessment system.
Develop capital plan.
Develop a system to make good advances.
Develop a recruitment, compensation, training and orientation plan.
Develop a plan for offering better customer service.
Develop appropriate mgt structure, systems, procedures and approaches.
Develop scientific MIS to monitor banks activities.
Strategies
Synchronized and steady growth of the bank.

Utilize all available resources to develop various plans, policies and procedures in
each of the objective and goal areas.
Implement plans, policies and procedures.
Utilize a team of professional employees.
Search for a total customized solution of I.T. for the purpose of full automation step.
Slogan
Slogan, with which the bank is moving forward, is Setting a new standard in
banking.
Core Values
Shareholders: By ensuring fair return on their investment through generating stable
profit
Customer: To become most caring bank by providing the most courteous and
efficient service in every area of their business
Employees: By promoting the well being of the members of the staff
Community: Assuring our socially responsible corporate entity in a tangible manner
through close through adherence to national policies and objectives.
SBL Management
Among the living creatures on earth the greatest creation of the Almighty is
mankind. Allah has given human being immense power of knowledge, wisdom,
intelligence, consciousness and so on. These qualities have made them different
from others. By the best use of these qualities in men it has been possible for our
world of today to reach this stage of modern science & technology. Of all existing
powers, human resources are the most invaluable productive power in our daily life,
in organizational needs & in diversified fields of action towards advancement. So,
human resources division of standard bank limited plays a very critical role in
formulating policies, developing practices and in achieving its goal by properly
utilizing the existing skilled manpower and also hunting best hands through an
abstract and absolute recruitment policy in the right dimension.
Management hierarchy of the Standard Bank Ltd:
Products & Services
Standard Bank Limited has two types of products & services:
Deposit Product
Current Deposit
Savings Deposit
Short Term Deposit

Fixed Deposit
Deposits Under Scheme
Loan Products
Secured overdraft
General Loan
House building Loan
Staff Loan
Transport Loan
Loan Against Trust Receipt
Payment against document
Packing Credit
Lease Finance
SME
Consumer Credit
Bill Purchase
3.

Services

Credit Card Services

Debit Card
Remittance
Pay order
Mathodology of The Stady
Methodology of The Study
I have collected my information/data from the following sources, which helped me
to make this report. The source has divided by two parts. Such asPrimary Sources:
Primary Data is those types of data, which are collected from the root. Its also
called the raw data. There are various tools of collecting primary data
Direct observation
Interviewing & conversation
Secondary Sources:

Secondary data are those, which have already collected by some one else and
wishes have been passed through the statistical process. This data can be collected
by two sources. The sources of information include
Internal tools:
Annual report 2011
Bank brochures
General report,
Magazines / journals / Periodicals
General banking manual
Statement of affairs
Progress report of the Bank
Bank Rate sheet.
Official records
External tools:
Website,
Banking related Books
Bangladesh Bureau of Statistics report etc.
General Banking System of SBL
General Banking Department of SBL
General banking is the front-side banking service department. It provides those
customers who come frequently and those customers who come one time in
banking for enjoying ancillary services. The officers of this department have to
perform the following tasks:
1)

Account opening and close.

2)

Collection of cash, cheque from customers.

3)

Issuing of FDR, pay orders, cheque books and demand draft.

4)

Assisting customer to open various deposit scheme.

5)

Conducting clearing house activities.

6)

Collection of local and outward bills.

SBL General banking is divided into six sections.

1)

Account opening section.

2)

Bills Collection and Clearing section.

3)

Remittance section.

4)

Deposit section.

5)

Account Section

6)

Cash section.

Privilege to Open Account

Who can open Account?

Minor (Minor can open the account in the name of the minors guardian or
jointly with the guardian)

Discharged bankrupt

Proprietorship firm

Partnership firm

Limited company

Non-trading concerns

Co-operative society

Corporation and Public body

Who cant open Account?

Minor (Minor is not allowed individually open account)

Drunker

Undercharged bankrupt

Insane

Account Opening Section

Process of Account Opening
The Banker must keep on his record the particulars of each account holder and his
introducer namely, full name, address, occupation, specimen signature, nominee
etc. The particulars are essential for identification of the account holders
individually so that the banker can discharge his obligation to everyone correctly
and to the extent due.
Step: 01- Introduction
It appears established that the banker must not open an account for a stranger to
him. Before opening an account he must first satisfy himself about the identity of
the proposed account opener, his integrity and respectability. This is essential in
order that a fictitious person or a person incapable of making a valid contract does
not open an account. To meet the requirement of law the banker has been
accustomed to obtaining an introduction for each account from a responsible person

known to him or having already a duly introduced account with him, after recording
his name, address, occupation and signature in the account opening form. In
addition to this the bank Manager should talk to the proposed account opener in an
informal way while opening the account and try to gather as much information as
are possible about his affairs and thereby satisfy himself about his bona fides.
About whether the introduction is avoidable while opening an account, can be
replied in the affirmative if the banker can ensure without fail that he will not
undertake any collection or agency work on behalf of the account holder, and that
the operations on the account will be strictly limited to deposits and withdrawals
only. This is practically not possible because of varied nature of transactions that
the modern banker undertakes on behalf of his customers.
Step: 02- Account Opening Form
Each banker has his own printed forms, more or less alike, for opening different
types of accounts. The relative form is required to be filled up correctly and
authenticated by the proposed account opener under his dated signature at the
time of opening the account. This document is very important as it governs the
relationship between the banker and the account holder, containing an undertaking
by the latter that he agrees to comply with the bankers existing rules for conduct of
such an account.
Step: 03- Enclosing Documents
Each account opening form consists of Know Your Customer (KYC-from April, 2002 it
is mandatory) form, Transaction profile, and Nomination form. In KYC form
interested account opener described himself, about name, occupation, address, and
introducer and so on. In Transaction profile he or she filled estimated monthly
transactions. And Nomination form is fills up to identify account holders nominee or
nominees who will be paid up total or portion of the accounts balance if the
account holder died. Except Nomination Form all those are needed for company and
other organization. With those documents, some other identification documents like
passport, Union Perished Chairman Certificate, Ward Commissioner Certificate,
Voter ID Card, Corporate ID card, Memorandum of Associations, Articles of
Association, Trade License etc. must be enclosed with the opening form.
Step: 04- Specimen Signature
One or more specimens of the account openers usual signature are maintained by
the banker on his record. These are the signatures the banker recognizes for the
purpose of customers signing cheque on the account and issue of other instructions
to him or her for execution. Any instruction of the customer under signature not in
conformity with the specimens is not to be acted upon by the banker under any
circumstances.
Step: 05- Recording of Specimen Signature
Each specimen signature should be individually attested by an authorized officer
under his signature and any unattested signature recorded with the banker should
be arise doubt as to its genuineness. Where fresh signatures are required to be

recorded subsequently the same can be done either on the original signature card if
there is space or on a separate signature card. In both the cases the signatures
should be attested individually by an authorized officer and the date of recording
the signatures should also be noted. But fresh signatures should not be recorded
unless requested for by the account holder in writing showing reason and he is
known to the banker or properly identified, as otherwise a cheat may put in a
signature to defraud the banker.
Step: 06- Custody and Safe-keeping of Signature Cards
The signature cards should always be kept under such a proper custody as to
prevent them from falling into unauthorized hands and also to exclude the
possibility of fraudulent substitution thereof. There are instances of frauds and
forgeries where additional signatures were subsequently inserted in the signature
card without authorization or the signature card itself was replaced containing fresh
signatures and cheque were paid without noticing the tampering. These frauds and
forgeries would not have been possible had the absence of attestation of the
signatures individually and the necessity of safe custody of the signature cards
been not ignored by the bank officer.
Step: 07- Initial Deposits
The initial deposits for opening an account may be for any amount but the bankers
sometimes prescribe a minimum. This initial deposit should be in cash or at the
most if unavoidable, a cheque drawn by the account opener in favor of or a bankers
draft payable to the banker with whom the account is opened. A cheque collected
for initial deposit in an account cannot be said to have been collected for a
customer in good faith and without negligence for the purpose of protection under
section 131 of N/A if the account opener has no tile to the cheque.
Step: 08- Thanks Letter
After initial deposits the banker doesnt issue cheque at the same time. Bank sends
Thanks Letter to thanking the account openers to open accounts in its branch. This
letter treats customers as honorable persons as well as it creates good faith and
relationship with the bank. But most important thing of this letter that it is one kind
of technique to verify the validity of the customers given information. Because,
when the registered letter is returned because of wrong information about their
name or addresses, it cannot be explained that there is a possibility of fraudulent.
And then banker must have to stop the accounts and issue of the cheque.
Step: 09- Issue of Cheque Book
If the account opener is known person, then cheque book can be issued before the
Thanks Letter. For issue of a cheque book there should be a request from the
account holder. The first one is issued on basis of the request printed on the
account opening form but not before the account is opened. No cheque book will be
issued except by an authorized officer. While issuing a cheque book the account
number should be noted on each leaf. This is essential for identification of the
concerned account easily on receipt of a cheque on any other account.

Immediately, after issue of a cheque book, its number should be noted on the
ledger page of the account under dated authentication of an authorized officer.
Deposit Section
Deposit is the lifeblood of a bank. From the history and origin of the banking system
We know that deposit collection is the main function of a bank.
Accepting deposits
The deposits that are accepted by Standard Bank like other banks may be classified
in to,
a) Demand Deposits
b) Time Deposits
a) Demand deposits:
These deposits are withdrawn able without notice, e.g. current deposits. Standard
Bank accepts demand deposits through the opening of,i) Current account
ii) Savings account
iii) Call deposits from the fellow bankers
b) Time deposits:
A deposit which is payable at a fixed date or after a period of notice is a time
deposit. Standard Bank accepts time deposits through Fixed Deposit Receipt (FDR),
Short Term Deposit (STD) and Bearer Certificate Deposit (BCD) etc.
While accepting these deposits, a contract is done between the bank and the
customer. When the banker opens an account in the name of a customer, there
arises a contract between the two. This contract will be valid one only when both
the parties are competent to enter into contracts. As account opening initiates the
fundamental relationship & since the banker has to deal with different kinds of
persons with different legal status, Standard Bank officials remain very much
careful about the competency of the customer
Types of Deposit Accepted By SBL (Mohammadpur Br):
Account opening is the gateway for clients to enter into business with bank. It is the
foundation of banker customer relationship. This is one of the most important
sections of a branch, because by opening accounts bank mobilizes funds for
investment. Various rules and regulations are maintained and various documents
are taken while opening an account. A customer can open different types of
accounts through this department. Such as:
These three types of accounts are most important for bank. And another account
are following:

Fixed Deposit Receipt (FDR) Account

Deposit Scheme Account.
Bearer Certificate of Deposit
Savings Account
This deposit is primarily for small-scale savers. There are certain limitations in
Savings Account, i.e., customer can draw only three days in a week, if they want to
get interest on the deposited money. If a customer draws more than twice in a week
he will not receive any interest for that month. Heavy withdrawals are permitted
only against prior notice. Some Important Points are as followsMinimum opening deposit of Tk.2000/= is required;
For saving account interest rate is 6%,
Minimum Tk. 1000/= balance must always maintain all the time;
Withdrawal amount should not be more than 1/4th of the total balance at a time
and limit twice in a month.
Customer Benefit:
Cheque book facility
Opportunity to apply for safe deposit locker
Utility payment service
Collect foreign remittance
Transfer of fund from one branch to another by

Demand draft

Mail transfer

Telegraphic transfer

Online banking service.

Current Deposit Account

The Mohammadpur branch of Standard Bank facilitates customers with different
types of current account. There are current accounts for individuals, proprietorship
firms; partnership firms, Joint Stock Company, school, college, association, trust and
N.G.O. Account opening form for these categories are different.
Some terms and documents may differ but the overall process of account opening is
similar to that of the saving account. Here I like to state what kinds of information to
be furnished in the form and which documents customer should provide.
Current Account (individual):

Mohammadpur branch uses the forms distributed by the SBL head office for opening
a current personal/ individual account. A customer should meet the following
requirements to see an account has been opened in his/ her name:
Name of the applicant
Profession or business of applicant
Address of the applicant
Photographs of the applicant
Introduced by an account holder of the branch
Signature on the application form
Signature on the specimen signature card
Verification of details and signatures by authorized officer.
Current Account (Proprietorship):
To open a proprietorship current account photocopy of trade license, attached by
the concerned officer, is required along with the procedure mentioned for individual
current account.
Current Account (Partnership):
Opening procedure of a partnership current account is almost same as the opening
of individual current account but some additional documents are required which are
follows:
Partnership deed
Letter of partnership
Trade license
Current Account (Joint Stock Company):
All the formalities of individual current account opening should be met for the
opening of Joint Stock Company; additionally following documents also should be
submitted to the bank. These documents are:
Registration certificate from Register of joint stock companies
Certificate incorporation
Memorandum of association
Articles of association
Annual audit report
Copy of board Resolution containing
the authorized persons have to operate the bank account on behalf of the company.

Name of the persons authorized to deal documents with the bank.

SBL current account meets the needs of individual and commercial customers
through its schedule benefit.
Customer Benefit:
Cheque book facility
Opportunity to apply for safe deposit locker facility
Collect foreign remittance in both T.C. and Draft.
Transfer of fund from one branch to another by
Telegraphic Transfer
Demand Draft
Mail Transfer
Collection of cheque through clearing house
Online banking service.
Short Term Deposit (STD)
Short Term Deposit or STD account opening procedure is similar to that of the
saving account. The difference is the interest rate.
Bank Deposit:
Amount

Interest Rate

Below 5 Crore
5-10 Crore

4%

5.5%

Over 10 Crore

6.5%

Other than Bank Deposit:

Public Bank Deposit: ( Govt., Semi Govt., Autonomous Body, Educational
Institutions, Association, Trust and NGO)
Amount

Interest Rate

Up to 1 Crore

6.00%

Above 1-5 Crore

7.00%

Above 5-10 Crore

7.50%

Above 10 Crore

8.50%

Private Deposit:
Amount

Interest Rate

Up to 1 Crore

5.50%

Above 1-5 Crore

6.00%

Above 5-10 Crore

6.50%

Above 10 Crore

7.00%

Features:
Minimum 7 days notice is needed for the withdrawn of the both STD. but it is now
become practice to withdrawn money by the client without any earlier notice.
If any financial organization or any autonomous bodies open this account then no
excise duty will be deducted but tax will be deducted.
Interest rate is calculated on daily basis.
Fixed Deposit Receipt
Fixed Deposit is the amount deposited by the customer for a fixed period of time. It
offers comparatively higher rate of interest. For 1 month interest rate is 9%, for 3
months interest rate is 11%, for 6 months interest rate is 11.5% and for 1 year
interest rate is 12%.
Procedure of FDR Account:
Bank provides the interested customer a Fixed Deposit form.
Customers fill the form, which contains name of the customer, amount of money,
duration, rate of interest etc.
After filling the form customer pay the money by cash or cheque.
After receiving the form from the customer the respected officer look for the cash
seal or transfer seal. If any of these are present and the form is properly signed the
officer provides a specimen signature card to the customer.
Customer signs thrice on the specimen signature card along with his or her full
name.
At the same time respected officer issue a fixed deposit receipt on the specific FDR
block.
This block includes:
Name of the customer
Amount of money deposited
Date on which the is deposited
Due date- on which the FDR will be matured.
Duration for which FDR has been made.
Rate of interest to be paid.

An FDR is renewed automatically if the customer does not come to cash it after the
maturity period. It can also be renewed upon the direction of the customer.
Features:
Interest is compounded once a quarter
Loan may be allowed up to 80% of the deposited amount under lien.
Exercise duty and source tax etc. are deductible from the depositor profit.
Bearer Certificate of Deposit (BCD):
The objective of BCD is to convert black money into white and to reduce Hindu
business. Bearer Certificate of Deposit account is almost same as Fixed Deposit
account. But in case of BCD account no name and address are mentioned, the
customer opens this type of account as a bearer, any person who bears the BCD
receipt can encase it. Another difference of BCD with FDR is that the customer
deposits the money deducting the interest. At the maturity he withdraws the total
money for which he opened the BCD account.
Interest rate on BCD account is same as fixed deposit account:
For 3 months @ 9.25%
For 6 months @ 9.50%
For 1 Year or above @ 9.75%
Accounting treatment in case of issuing of BCD,Cash A/c Debit.
BCD A/c Credit.
Accounting treatment in case of encashment of BCD,BCD A/c .Dr.
Excise Duty on Deposit ..Cr.
Tax on Interest .Cr.
Cash A/C Cr.
In a very recent circular of the central Bank i.e. Bangladesh Bank directed all
commercial banks not to open any BCD Account due to preventive measures and
protection of Money Laundering.
Deposit Scheme:
Under deposit scheme, the Standard Bank Ltd (SBL) offers different types of
products (scheme) to help the fixed income people to save money and meet any
future financial obligations. The schemes offer a large amount of money after a
certain period of time if the account holders deposit a specific amount on monthly
basis. The schemes are-

Three stage savings scheme

Monthly benefit scheme
DI+ (Double Income Plus) Account
SRDP (SBL Regular Deposit Program
SSRIP (SBL Regular Income Program)
SBL Millionaire Plus
SBL Lakhopati plus
Marriage savings scheme
Juniors savers scheme
Lakhpati scheme.
Monthly Benefit scheme (MBS)
The Monthly Benefit Scheme (MBS) is a deposit scheme where the depositor gets
monthly benefit out of his deposit. The scheme is designed for the benefit of
persons who intend to meet the monthly budget of their families from the income
out of their deposit.
Any citizen of Bangladesh can open this scheme. The scheme can be opened in the
name of an individual only. MBS is perfect for those 18 of age or older. To open the
scheme requires deposit of BDT 1, 00,000/= or its multiples but maximum BDT
1,00,00,000/=. The deposit will be for a period of 2/3/5 years and the principal
amount is refundable on maturity.
Monthly Benefit: Benefit will be as per the following example:
Terms (years)
10% (BDT)

Deposit (BDT)

Monthly Benefit (BDT)

2 years

1,00,000.00 900.00

810.00

3 years

1,00,000.00 900.00

810.00

5 years

1,00,000.00 945.00

850.00

Payable After Tax

SBL Regular Deposit Program (SRDP):

If any monthly installment remains unpaid for 5 (five) consecutive months, the
account will be closed automatically and the account will be settled as detailed
below:Relationship/ Tenure
Applied Interest
Less than 1(one) year
No interest

More than 1 year but less 3 years

Savings Rate
More than 3 years but less 5 years
Matured value of 3 years and rest as per prevailing interest rate on savings rate
More than 5 years but less 10 years
Matured value of 5 years and rest as per prevailing interest rate on savings rate.
If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/(Twenty) next subsequent installment.
Monthly Installment, Tenure and Maturity Value will be as per following Schedule:Installment / Years
300
500
1000
2000
2500
5000
10000
3 Years
13,000
21,700
43,400
86,800
1,08,600
2,17,200
4,34,400
5 Years
24,700
41,400
82,800
1,65,600

2,07,000
4,14,000
8,28,000
7 Years
39,900
65,600
1,31,200
2,62,400
3,28,000
6,56,000
13,12,000
10 Years
69,100
1,15,100
2,30,200
4,60,400
5,75,500
11,51,000
23,02,000
SBL Regular Income Program (SRIP):
SBL Regular Income Program is an income program, which helps you to earn a
monthly fixed amount on your deposits at SBL for period of 3 years.
Deposit of Tk. 50,000/- (Fifty Thousand) and multiples thereof but maximum limit of
Tk. 25, 00,000/- (Taka Twenty Five Lac) at a time and depositor will earn 36 equal
monthly profit.
Depositor can earn money due date as per following schedule:Deposit Amount
50,000
1,00,000
2,00,000
3,00,000

4,00,000 & above

Monthly Interest Payable
500
1,000
2,000
3,000
4,000 & Above
N. P: This schedule changeable.
SBL Double Income plus (DI+) Program:
Deposit of Tk. 10,000/- (Ten Thousand) and multiples thereof will be acceptable
under this program.
A specially designed receipt shall be issued for the deposit under this program.
. The instrument shall be issued for 5 years 6 month.
At maturity after 5 years 6 month the depositor will be get double plus (DI+).
If any depositor intends to withdraw his deposit before maturity, the following rules
will apply:a)
No benefit including interest/profit shall be allowed for pre-mature
encashment within 1 (one) year.
b)
If the accounts/deposits are closed/en-cashed after 1 (one) year of its opening
interest shall be allowed on the deposit at prevailing FDR Interest Rate.
The instrument will be acceptable as collateral security against any investment
subject to registering lien with the issuing Branch.
In case of instrument get lost, the procedure for the issuance of a duplicate receipt
will be the same as applicable in case of loss of FDR.
SBL 5 (Five) Lac Savings Scheme:
Anybody can open this scheme by Deposited Tk. 5,000/-(five thousand) only per
Month.
The tenure of the scheme is 6 (six) years.
After Six Years Depositor will get Tk. 5,20,000/-.
If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/(twenty) on next subsequent installment.
In case of premature close of the account the account holder will get savings rate
interest but not interest less than 6 (six) months.

If 4 (four) consecutive monthly installment unpaid the account will be closed

automatically.
SBL Millionaire Plus (SLP+) Programs:
The depositor will have the option to choose any installment size at the time of
opening of the account and will not be allowed change the size of installment
afterwards.
In case of premature closing of the account minimum after 1 (one) year completion,
the account holder will get Saving Rate of Interest only. But no interest will be paid
before 1 (one) year completion of continued payment.
In case of premature close of the account the account holder will get savings rate
interest but not interest less than 6 (six) months.
If any client fails to pay monthly installment on due dates in maximum 4 (four)
months he/she will pay penalty of Tk. 20/- (Twenty) per month to the next
subsequent installment.
If any client fails to pay 4 (four) consecutive monthly installments the account will
be closed automatically.
Monthly Installment, Tenure and Maturity Value will be as per following Schedule:
Monthly Installment
Tenure
Amount to be paid after Maturity
3,800
2 Years
1,03,460
2,600
3 Years
1,12,950
1,400
5 Years
1,15,090
800
7 Years
1,33,800
600

10 Years
1,38,210
SBL Millionaire plus (SMP+) Program:
The depositor will have the option to choose any installment size at the time of
opening of the account and will not be allowed change the size of installment
afterwards.
In case of premature closing of the account minimum after 1 (one) year completion,
the account holder will get Saving Rate of Interest only. But no interest will be paid
before 1 (one) year completion of continued payment.
If any client fails to pay monthly installment on due dates in maximum 4 (four)
months he/she will pay penalty of Tk. 20/- (Twenty) per month to the next
subsequent installment.
If any client fails to pay 4 (four) consecutive monthly installments the account will
be closed automatically.
Monthly Installment, Tenure and Maturity Value will be as per following Schedule:
Monthly Installment
Tenure
Amount to be paid after Maturity
24,000
3 Years
10,30,000
13,500
5 Years
10,67,000
9,000
7 Years
10,90,000
5,500
10 Years
10,75,000
CLEARING SECTION 5.5
Cheque, Pay Order (P.O), Demand Draft (D.D.) Collection of amount of other banks
on behalf of its customer are a basic function of a Clearing Department.

Clearing
Clearing is a system by which a bank can collect customers fund from one bank to
another through clearing house.
Clearing House
The clearing house is an assembly of the locally operating scheduled banks for
exchange of cheque, drafts and other demand instruments drawn on each other and
received from their respective customers for collection. The house meets at the
appointed hour on all working days. Under the chairmanship of the central bank or
its agent as the case may be, and works within the regulations framed there on the
basis of the prevailing banking practices. The net dues receivable or payable arrived
at after off-setting the total amount of the instruments received with that of the
instruments delivered, are adjusted through the respective bankers account
maintained with the chairman-banker.
OR
Clearing House is a place where the representatives of different banks get together
to receive and deliver cheque with another banks.
Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong,
Rajshahi, and Khulna & Bogura. Where there is no branch of Bangladesh Bank,
Sonali bank arranges this function.
The scheduled banks clear the cheque drawn upon one another through the
clearinghouse of Bangladesh Bank.
The SBL Mohammadpur Br. sends the instruments through Inter Branch Debit
Advice (I.B.D.A). SBL imamgonj Br. acts as an agent in this case. For this,
Mohammadpur Br. gives the following entries,
SBL General A/C (Mohammadpur Br.) Dr.
Customers A/CCr.
If the instrument is dishonored, the instrument is returned to the Mohammadpur
Branch through I.B.D.A. along with the following entries,
Customers A/CDr.
SBL General A/CCr.
Member of Clearing
Standard Bank LTD. is a scheduled Bank. According to the Article 37(2) of
Bangladesh Bank Order, 1972, the banks, which are the member of the
clearinghouse, are called as Scheduled Banks. The scheduled banks clear the
cheque drawn upon one another through the clearinghouse.
Types of Clearing
A) Outward Clearing:

When the Branches of a Bank receive cheque from its customers drawn on the other
Banks within the local clearing zone for collection through Clearing House, it is
Outward Clearing.
For exampleThe cheque drawn on SBL Mohammadpur Branch. Then the cheque is called inward
cheque of SBL Mohammadpur Branch. Accounting treatment:
Customers A/C Debit.
SBL General A/C Credit.
B) Inward Clearing:
When the Banks receive cheque drawn on them from other Banks in the Clearing
House, it is Inward Clearing.
For example, the cheque drawn on Mercantile Bank Ltd, Karwan Bazar Branch has
been presented on SBL Mohammadpur Br. This cheque is called the outward cheque
of SBL Mohammadpur Br. Hence it is said that the cheque which is the inward
cheque of one bank is the outward cheque of another bank.
Whenever a cheque is brought to the collection the concerned Officer does two
functions:i.
ii.

Giving the special crossing with Standard Bank. Mohammadpur Br. Dhaka
Endorsed by the collecting bank.

The following table is showing endorsement of instrument in SBL.

Endorsement
Payees A/C credited pay to Mr. XXXXX
Received payment
Payees A/C credited Pay to SBL. Mr., XXXXXX
Payees A/C credited pay Mr. XXXX of SBL
Payees A/C will be credited on realization Bills for Collection
Types of clearing house
There are two type of clearing house: Those are
1) Normal clearing house
2) Same day clearing house
Normal clearing house:
1st house: 1st house normally stands at 10 a.m. to 11a.m
2nd house: 2nd house normally stands after 3 p.m. and it is known as return house.

Same day clearing house:

1st house: 1st house normally stands at 11 a.m. to 12 pm
2nd house: 2nd house normally stands after 2 p.m. and it is known as return
house.
Who will deposit cheque for Clearing?
Only the regular customers i.e. who have Savings, Current, STD & Loan Account in
the bank can deposit cheque for collection of fund through clearing house.
Clearing House System
When a branch receives a cheque from its customer (payee) for collection from
other banks branch, they send it to the BB clearing house or its agent sonali Bank
through the principal branch at the last hour (evening). BB clearing house or its
agent sorts the cheque with other cheque at night and sends the cheque to the
responding branch for payment through its principal branch at second day. The
responding branch checks the cheque for honors or dishonors. If it honors the
cheque, then it debit the customer (drawer) account and credit GL account of the
principal branch and sends an advice to the principal branch about it. But if it
dishonors the cheque, then it writes a slip to show the cause of dishonor and
attached it with the cheque, and sends it to the principal branch at last hour.
Principal sends the cheque to the BB clearing house, for honored cheque clearing
house debit the responding bank account and credit collecting bank account, but for
dishonored cheque it does not give such entries. After all these works again it sends
the dishonored cheque to the principal branch of the collecting bank. Then principal
branch sends the cheque to payees branch. Payees branch give entry for that
dishonored cheque.
Slip that is attached with Dishonored Cheque or Other Instruments
Precaution at the time of cheque receiving for Clearing, Collection of LBC, OBC &
Transfer
1) Name of the account holder same in the cheque & deposit slip.
2) Amount in The cheque & deposit slip must be same in words & in figure
3) Date in the cheque may be on or before (but not more than six months back)
clearing
house date.
4) Bank & Branch name of the cheque, its number & date in the Deposit slip.
5) Cheque must be signed.
6) Signature for confirmation of date, amount in words / in figure Cutting &
Mutilation of cheque.
7) Cheque should be crossed (not for bearer cheque).
8) Account number in the deposit slip must be clear.

9) Depositors signature in the deposit slip.

Return house
Return House means 2nd house where the representatives of the Bank meet after 3
p.m. to receive and deliver dishonored cheque, which placed in the 1st Clearing
House.
Cheque may be dishonored for any one of the following reasons:
1)

Insufficient fund.

2)

Amount in figure and word differs.

3)

Cheque out of date/ post- dated.

4)

Payment stopped by the drawer.

5)

.Payees endorsement irregular / illegible / required.

6)

Drawers signature differ / required.

7)

Crossed cheque to be presented through a bank.

8)

Other specific reasons not mentioned above.

The dishonor cheque entry in the Return Register & the party is informed about it.
Partys signature required in the return register to deliver the dishonor cheque. After
duration, the return cheque is sent to the partys mailing address with Return
Memo.
If the cheque is dishonored due to insufficiency of funds than Standard Bank
Charge.25/=as penalty.
Issuing cheque book
Following procedures are maintained by SBL, Mohammadpur Branch. for issuing
Cheque Book.
(a)

Firstly the customer will fill up the cheque requisition form.

(b) The leaves of the Cheque Book under issue are counted to ensure that all the
leaves and the blank requisition slip are intact.
(c)
The officer writes A/C number and Branch name on all the leaves of the
checkbook.
(d) The name and the A/C number of the customer are than entered in the
checkbook register against the particular checkbook series.
(e)

Then the officer sightseer, checkbook, and requisition slip.

(f)
Lastly the checkbook is handed over to the customer after taking
acknowledgement on requisition slip.

A cover file containing the requisition slip is effectively preserved as vouchers. If

any defect is noticed by the ledger keeper, he makes a remark to that effect on the
requisition slip and forward it to the cancellation officer to decide whether a new
checkbook to be issued to the customer or not.
Per Cheque Book Leaves 3 Taka and vat with 15 percent. This Money Collected from
Clients After end of the year.
Cheque
A cheque is an unconditional order of the drawer in writing bearing a date, to the
banker maintaining his account to pay on demand, to a named person, his order or
bearer, a certain specified sum of money, expressed in both figures and words.
Parties to Cheque
There are three parties are available to a cheque. They are Drawer, Drawee, and
Payee.
Drawer:
Drawer is the person who draws the cheque i.e. the depositor of money in the bank.
Drawee:
Drawee is the drawers banker on whom the cheque has been drawn.
Payee:
Payee is the person who is entitled to receive the payment of a cheque.
When a cheque is drawn pay to self or pay cash the payee is the drawer, his
endorsee or bearer, as the case may be depending on the form in which it is drawn
namely, order or bearer. A cheque is Payable forthwith on production and no
presentment thereof is required as in the case of a bill of exchange or pro note. The
payee or endorsee who is in possession of a cheque or the bearer thereof is the
holder. A holder becomes a holder is due course when he possesses the instrument
for consideration, before it became over-due and without notice that the title of his
transferor was defective.
Endorsement and Negotiation
The endorsement is done by the payee or endorsee, as the case may be, by signing
on the instrument customarily on its back and where the space is sufficient, on a
slip of paper annexed thereto, called allonge. An order instrument is required to be
endorsed by the payee or endorse for the purpose of negotiation. To make the
negotiation complete, the endorsement must be followed by delivery of the
instrument to the endorsee to make him holder (Ss. 48 &51 NIA). The endorsement
should be for transferring the entire property in the instrument, if negotiation is
desired and where it is done for transfer of the property partly, or to more than one
severally it doesnt operate as a negotiation. A bearer instrument is not required to
be endorsed for the purpose of negotiation and can be negotiated by mere delivery
(Ss 47, & 28A, NIA). In case of an order instrument, verbal assignments by mere

delivery thereof without endorsement, is not valid and confer no title to the
transferee except where equitable assignment is intended.
Types of Endorsement
There are five kinds of endorsements available, namely endorsement in blank,
special endorsement, restrictive endorsement, conditional endorsement, and partial
endorsement.
Blank Endorsement
In case of an endorsement in blank the payee or endorser does not specify an
endorsee and he simply signs his name. An instrument so endorsed becomes
payable to bearer.
Special Endorsement
When the payee or endorser specifies the person to whom or to whose order the
instrument is to be paid, the endorsement is called special endorsement or
endorsement in full. The specified person i.e., the endorsee then becomes the
payee of the instrument. The holder of an endorsed in blank can convert the blank
endorsement into an endorsement in full by simply writing the same of any person
in the space above the endorsers signature and thereby, he doesnt become an
endorser to incur any responsibility on the instrument. If an instrument endorsed in
blank is followed by a special endorsement, the endorsee must endorse it to give
further negotiation.
Restrictive Endorsement
A restrictive endorsement is one where the endorser prohibits further endorsement
of the instrument by his endorsee or constitutes his endorsee an agent for
collection.
Conditional Endorsement
A conditional endorsement is one, where the endorser excludes his liability as an
endorser or makes his liability conditional. When the endorser wants to avoid his
liability on the instrument in the event of it being dishonored, he can do so by
writing the words Without Resource followed by his signature. But this does not
absolve him of his liability with respect to any forgery on the instrument prior to his
endorsement. He can by express words in the endorsement, also make his liability
dependent upon fulfillment of certain condition. In this case the endorsers liability
is dependent upon fulfillment of the condition, otherwise his liability extinguishes.
The payer is not bound by the condition and his payment to the endorsee is valid
whether the condition is fulfilled or not.
Partial Endorsement
Though such an endorsement the endorser makes partial transfer of the property in
the instrument but this is not operative for negotiation of the instrument. Where the
amount of the instrument is partly paid, a note to that effect may be made on it and

it may then be endorsed for the balance (s. 56, NIA). This is not done in case of
cheque or bankers drafts.
Types of Cheque
There are three types of cheque. They are bearer cheque, order cheque, and
crossed cheque
Bearer Cheque:
A bearer cheque is payable to the bearer and the banker is discharged from liability
by payment in due course to the bearer thereof. Unless the form of drawing bearer
is changed to order, a bearer cheque is always a bearer one and no endorsement
can make it payable otherwise than to the bearer thereof. Though such a cheque is
not required to be endorsed for negotiation the recipient of cash must endorse it in
token of having received the payment, otherwise the banker is entitled to ask for a
receipt, where required, on revenue stamp, for the amount paid by him against the
cheque. Further, a transferor by delivery i.e. without endorsement is not liable on
the instrument.
Order Cheque:
In case of an order cheque it should purport to be endorsed by or on behalf of the
payee. Where an order cheque has been endorsed by payee in favor of another, the
endorsee must also sign it to receive the payment in due course. In practice, the
banker insists on identification of the payee while making payment of such a
cheque in cash. This is done to avoid any chance of being charged with payment
out of due course.
Crossed Cheque:
A cheque (also bankers draft) can be crossed generally or specially to a banker by
the drawer, or the holder thereof. The crossing must be on the face of the cheque,
there must be two lines drawn transverse and parallel. There cannot be any general
crossing without the two transverse lines, with or without the words and company
or abbreviation thereof, though the name of a banker without the lines is sufficient
to constitute a special crossing.
Payment Cancelled By Cheque
A cheque is payable on due presentation for payment if it is drawn in proper form
duly signed by the drawer or his authorized agent, subject to the crossing, if any,
and the sufficient credit balance in the concerned account or the arrangement made
for an advance and the drawee banker is discharged from liability by payment
thereof in due course. In the event of dishonor of a cheque due to a reason other
than a valid one, the drawee banker is liable to the drawer for any loss or damage
caused thereby.
Payee of Cheque
There must be a person entitled to receive the payment of the cheque either as a
payee or his endorsee or bearer. The drawer himself may also be the payee by

writing his name, self or pay cash. In the absence of the payees name, the cheque
cannot be treated as a bearer one nor it can be looked upon as a cheque at all and
the better course would be to return it for completion under authentication of the
drawer.
Post Dated Cheque
A post dated cheque is one which bears a future date as its date of issue. Such a
cheque is valid and its negotiability is not impaired simply because it is post dated.
But the banker cannot pay it earlier than its date because the drawers mandate is
not to pay it earlier.
Antedated Cheque
Where a cheque bears a date before the date of its issue it is known as an
antedated cheque and is not invalid because of only antedating provided this does
not involve any illegal or fraudulent purpose or transaction. A cheque antedated for
more than six months becomes stale or out of date as per banking practice.
Stale or Outdated Cheque
As per banking custom a cheque (also bankers draft) becomes stale when it
remains circulation for more than six months, though there is no legal sanction in
this respect. Such an instrument is not honored by the drawee banker unless
revalidated by the drawer. But it does not appear established that the drawer or the
endorser of such an instrument is discharged from liability unless barred by
limitation of three years.
Amount of Cheque
The law does not specify whether the amount of a cheque is required to be
expressed both in words and figure. But as per banking practice the amount is
stated both in words and figure. Where the amount in words and figure differs, the
amount stated in words will prevail. If the banker pays the amount of a cheque
expressed in words even though it is higher than that expressed in figure, the
banker may be protected under law but in practice, he does not pay a cheque with
discrepancy. To pay the smaller amount is also not the general custom.
Sufficient Balance
The payment of a cheque is subjected to the drawers having sufficient credit
balance in his account (s. 31, NIA) unless an arrangement has been made by the
drawer for an overdraft. When the balance is not sufficient to meet the whole
amount of the cheque, the payee cannot demand a part payment nor the banker is
bound to make such a payment, as the cheque cannot be considered as an
assignment of funds in order to enable the payee have an equitable claim on the
drawers balance.
Drawers Signature
The banker cannot debit his customers account with the amount of cheque if the
customers signature thereon is forged as this is not the order of the customer. It is

the duty of the banker to acquaint himself with the customers specimen signature
and before payment of a cheque, he must compare the signature with the specimen
one on his record. Where a forgery is detected subsequent to the debit of the
account and the forgery is found to be directly due to or is intimately connected
with negligence of the customer in the safe keeping of the cheque book, the banker
is entitled to debit his account.
No Payment for Valid Cheque:
A cheque does not become payable even if it is valid for payment, whereIts payment has been stopped by the drawer in writing
There is notice of customers death
There is notice of customers bankruptcy
There is notice of customers insanity
There is knowledge of defective title of the holder
Misappropriation of trust funds by the customer
Garnishee order & Court injunction or any other court order restraining the
customers from operating the account
Responsibility of the concerned officer for the Clearing Cheque:
1. Crossing of the cheque. (Cheque and Crossing)
A Cheque is a bill of exchange drawn on a specified banker and not expressed to
be payable otherwise than on demand. [According to section-6, negotiable
Instrument Act, 1881.]
A cheque may be classified into:
a)
An open cheque which can be presented for payment by the holder at the
counter of the drawers bank.
b)

A crossed cheque which can be paid only through a collecting banker.

2. (Computer) posting of the cheque.

3. Clearing seal & proper endorsement of the cheque.
4. Separation of cheque from deposit slip.
5. Sorting of cheque 1st bank wise and then on branch wise.
6. Computer print 1st branch wise & then bank wise.
7. Preparation of 1st Clearing House computer validation sheet.
8. Examine computer validation sheet with the deposit slip to justify the computer
posting .
Bills Collection:

In modern banking the mechanism has become complex as far as smooth

transaction and safety is concerned. Customer does pay and receive bill from their
counterpart as a result of transaction. Commercial banks duty is to collect bills on
behalf of their customer.
Types of Bills for Collection
a)

Outward Bills for Collection (OBC).

b)

Inward Bills for Collection (IBC).

a)

OBC

OBC means Outward Bills for Collection .OBC exists with different branches of
different banks outside the local clearing house. Normally two types of OBC:
1)

OBC with different branches of other banks

2)

OBC with different branches of the same bank

Procedure of OBC:
1)

Entry in the OBC register.

2)

Put OBC number in the cheque.

3)
Crossing seal on the left corner of the cheque & payees account will be
credited on realization seal on the back of the cheque with signature of the
concerned officer.
4)

Despatch the OBC cheque with forwarding.

5)
Reserve the photocopy of the cheque, carbon copy of the forwarding and
deposit slip of the cheque in the OBC file.
Commission for collection:
Up to 1 lac - 0.15%
Above 1 lac- 0.10%
Above 5lac - 0.05%
b) Inward bills for collection (IBC)
When the banks collect bills as an agent of the collecting branch, the system is
known as IBC. In this case the bank will work as an agent of the collection bank. The
branch receives a forwarding letter and the bill.
Procedure of IBC:
IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC
Register .The IBC number should put on the forwarding of the OBC with date.
Deposit of OBC amount: OBC cheque amount is put into the sundry deposit-sundry
Creditors account, prepare debit & credit voucher of it . If the OBC cheque is

honored, send credit advice (IBCA) with signature & advice number of the concern
branch for the OBC amount.
If the OBC cheque is dishonored, the concerned branch is informed about it .
Again place in the clearing house or send the OBC cheque with Return Memo to the
issuing branch according to their information.
RemittanceSection
Local Remittance
Remittance of funds means transfer of money from one place to another through
the banking channel.
Remittance of funds is ancillary services of SBL like other commercial banks. It aids
to remit fund from one place to another place on behalf of its customers as well as
non- customers of bank. SBL has its branches in the major cities of the country and
therefore, it serves as one of the best mediums for remittance of funds from one
place to another.
Types of remittance:
Between banks and non banks customer
Between banks in the same country
Between banks in the different centers.
Between banks and central bank in the same country
Between central bank of different customers.
Payment order ( PO)
The main instruments used by SBL, Mohammadpur Br. for remittance of funds
Demand Draft ( DD)
Telegraphic Transfer (TT
Payment order (PO):
Pay Order gives the payee the right to claim payment from the issuing bank.
Payment is made from issuing branch only. Generally remit fund within the
clearinghouse area of issuing branch. Bank charge only commission for this.
However party must have an account with the bank, so that whenever the fund
refund they (party) can collect it. But for the student and the pay order for job
purpose of any applicant, account with the bank is not mandatory. Because in this
case fund are non-refundable (verified by charged amount).

Pay Order Slab

Taka

1
1-10000
29
2
10000-100000
58
3
100000-500000
115
4
500000-Above
175
Issuing of Pay Order:
The procedures for issuing a Pay Order are as follows:
Deposit money by the customer along with application form.
Give necessary entry in the bills payable (Pay Order) register where payees name,
date, PO no, etc is mentioned.
Prepared the instrument.
After scrutinizing and approval of the instrument by the authority, it is delivered to
customer. Signature of customer is taken on the counterpart.
A customer can purchase PO in different modes:
By cash: Currently it is not permitted by the SBL, Head Office.
By account:
By transfer:
PO A/C is the current liabilities of bank, which is acquired to be discharged by
beneficiaries against cash or through an account.
Dr. Bills payable (PO)
Demand Draft (DD)
Demand Draft is an order of issuing bank on another branch of the same bank to
pay specified sum of money to payee on demand. Payment is made from ordered
branch. Generally remit fund outside the clearinghouse area of issuing branch.

Payee can also be the purchaser. Bank confirm through checking the Test Code
Bank charge a commission and telex charge for it.
Mail Transfer Advice
Issuing branch requests another branch to pay specified money to the specific
payee on demand by Telegraph /Telephone. Payment is made from ordered branch.
TT can be remit anywhere in the country. Bank charge a commission plus telephone
charge. However this service is available only for a limited number of customer. Mail
Transfer Advice
Where the remitter desires the banker to remit the funds to the payee instead of
purchasing a draft himself, the banker does it through a Mail Transfer Advice. The
transfer is so called as the advice is dispatched to the paying office by ordinary
mail. The payee must have an account with the paying office as the amount
remitted in such a manner, is meant for credit to the payees account and not for
cash payment.
Issuing of TT
SBL follows the following procedures:
i)
ii)

The customer deposits money with SBL to be sent.

The customer obtains a cash memo containing TT serial number.

iii)
message.

TT serial number, notifying part name is mentioned in the telex

iv)

The Telex Department confirms transmission of the telex.

Locker Service
SBL Mohammadpur Br.is going to providing facility of locker service for the purpose
of safeguarding the valuable property of customers. The person or organization that
has any account in bank branch can enjoy this service. They keep their valuable
assets in bankers custody. Customers have right to look after with a key of their
individual locker provided by bank. SBL maintains the following types of lockers:
Large locker.
Medium locker.
Small locker.
For enjoying this service, clients have to give charge yearly Tk. 1500, Tk. 1250 and
Tk. 700 for large, medium and small locker respectively
Account Section 5.7
Accounts Department is called as the nerve Centre of the bank. In banking business,
transactions are done every day and these transactions are to be recorded properly
and systematically as the banks deal with the depositors money. . Improper
recording of transactions will lead to the mismatch in the debit side and in the credit

side. To avoid these mishaps, the bank provides a separate department; whose
function is to check the mistakes in passing vouchers or wrong entries or fraud or
forgery. This department is called as Accounts Department. If any discrepancy arises
regarding any transaction this department report to the concerned department.
Workings of this department:
Recording the transactions in the cashbook.
Recording the transactions in general and subsidiary ledger.
Preparing the daily position of the branch comprising of deposit and cash.
Preparing the daily Statement of Affairs showing all the assets and liability of the
branch as per General Ledger and Subsidiary Ledger separately
Making payment of all the expenses of the branch.
Recording inters branch fund transfer and providing accounting treatment in this
regard.
Preparing the monthly salary statements for the employees.
Preparing the weekly position for the branch which is sent to the Head Office to
maintain Cash Reserve Requirement (C.R.R)
Preparing the monthly position for the branch which is sent to the Head Office to
maintain Statutory Liquidity Requirement (S.L.R)
Make charges for different types of duties
Preparing the budget for the branch by fixing the target regarding profit and
deposit so as to take necessary steps to generate and mobilize deposit.
Checking of Transaction List
Recording of the vouchers in the Voucher Register & packing of the correct
vouchers according to the debit voucher and the credit voucher
Statement of Accounts
The statements are generally issued two times in a year, but sometimes it is issued
several times by responding the customers application for necessity. The necessity
of such statement of accounts was presumably felt in order to keep the account
holders apprised of the position of their accounts so that their confidence in the
banker remains unshaken. But with the gradual expansion of banking habits
unauthorized withdrawals and misappropriations of customers deposits through
unscrupulous means are on the increase. To check such fraudulent transactions it is
all the more necessary now-a-days to send statements of accounts to the customers
so that they can by themselves check up the balances of their accounts.
Statement Charge: Standard Bank Collected yearly 230 taka for statement withdraw
from Clients.

Closing of an Account
For two reasons, one can be closed. One is by banker and other is by the customer.
By banker:
If any customer doesnt maintain any transaction within six years and the A/C
balance becomes lower than the minimum balance, banker has the right to close an
A/C.
By customer:
If the customer wants to close his A/C, he writes an application to the manager
urging him to close his A/C.
Different procedures are followed in cash of different types of A/C to close. Fixed
deposit A/C is closed after the termination of the period. BCD A/C is closed when the
certificate is surrendered.
Closing process for current & savings A/C:
After receiving customers application the officer verifies the balance of the A/C.
He then calculates interest and other charges accumulated on the A/C.
If it bears a credit balance, the officer writes advice voucher. He gives necessary
accounting entries post to accounts section.
The balance is returned to the customer. And lastly the A/C is closed.
CASH SECTION
Banks, as a financial institution, accept surplus money from the people as deposit
and give them opportunity to withdraw the same by cheque, etc. But among the
banking activities, cash department play an important role. It does the main
function of a commercial bank i.e. receiving the deposit and paying the cash on
demand. As this department deals directly with the customers, the reputation of the
bank depends much on it. The functions of a cash department are described below.
Function of Cash Department:
Cash Payment:
Cash payment is made only against cheque
This is the unique function of the banking system which is known as payment on
demand
It makes payment only against its printed valid Cheque
Cash Receipt
It receives deposits from the depositors in form of cash
So it is the mobilization unit of the banking system

It collects money only its receipts forms

Cash packing:
After the banking hour cash is packed according to the denomination. Notes are
counted and packed in bundles and stamped with initial.
Chapter 06
SWTO Analysis
SWOT Analysis of The SBL 6.1
SWOT analysis is one of the most important steps in formulating strategy. Using the
organization as a context, manager context assess internal strength and weakness
as well as external opportunity and Threat. The goal is then to develop good
strategies that exploit opportunities and strengths, neutralize threats and weakness.
Reviewing this SWOT analysis from time to time would help evaluate the banks
position. It would help the management in comparing their strength of the past with
those of the present and to what extent the management has been able to
overcome the weaknesses.

Last Five Years Financial Report

(Figure in Millions)

Table 1: Total Assets growth from 2006 to 2012

Figure 1: Total Assets growth from 2006 to 2010 (in Million TK)
Analysis:
As of 31 December 2012 total asset of the Bank was tk.87462 million where it was
68325 million in 2011.

Table 2: Deposit growth from 2006 to 2010

Figure 2: Deposit growth from 2006 to 2010 (in Million TK)
Analysis:
SBL always tried to give the highest return on the deposits from the customers. The
deposits of SBL reached the level of TK. 5,834.44 crore during 2012 from TK. 4,255
of the previous year. The growth rate is 37.10%. Cost of deposit for the year stood
at 7.83% compared to the previous years cost of 9.33%. The increase in deposit
was possible due to superior customer service delivery of the branch level.

Table 3: Loan and Advances growth from 2006 to 2010

Figure 3: Loan and Advances growth from 2006 to 2010 (in Million TK)
Analysis:
Total loan & advances figure of the bank has risen up to TK. 51,757.69 million as on
December 31, 2010 in comparison to TK. 38055.43 million as on December 31,
2009, which indicates as on increased by 36% over the figure of last year. During
this time bank has concentrated to explore new and diversified avenues for
investment with the objectives of developing and maintaining a sound portfolio
ensuring profitability and risk mitigation.

Table 4: Investment growth from 2006 to 2010

Figure 4: Investment growth from 2006 to 2010 (in Million TK)

Analysis:
During the year 2010, SBL investment portfolio comprised with government
Treasury bill and other security. In the year 2010, the size of investment portfolio
raised at TK. 7607 million against TK. 5340 million in the year 2011 showing and
increasing of 38.52%.
Capital Adequacy Ratio
Percentage)
Particulars

Table 5: Capital Adequacy Ratio growth from 2006 to 2010.

(Figure in

Figure 5: Capital Adequacy Ratio growth from 2006 to 2010 (%)

Analysis:
Capital adequacy ratio is measured by the ratio of the total capital to the risk
weighted assets. Capital adequacy ratio is stood at 10.30% of Risk weighted assets
at the end of 2010.Where requirement was 9% of RWA.
Operating Profit
Taka)

(Figure in Million

Table 6: Operating profit growth from 2006 to 2010

Figure 6: Operating profit growth from 2006 to 2010(in Million TK)
Analysis:
Standard Bank Limited generated an operating profit of TK. 277.08 crore in 2010
compared to TK. 152.98 crore in 2009 making a growth of 81.08%. After all
provision including general provision on unclassified loan, profit before tax stood at
TK. 237.64 core compared to previous years TK.128.42 crore registering a growth
of 84.98%.
Earnings per Share (Taka)
Particulars

Table 7: Earning per share growth from 2006 to 2010

Figure 07: Earnings per Share growth from 2006 to 2010 (in TK)
Analysis:
As of 31 December 2010 EPS of the Bank was tk.43.15 per share where it was 24.09
per share in 2019.
Number of Branch

(Figure in Number)

Particulars

Table 8: No of Branch growth from 2008 to 2012

Figure 8: No of Branch growth from 2006 to 2010
Analysis: As of 31 December 2010 no. of new branches opened by the Bank was 58
where it was 41 branches in 2006.
Chapter 07
Major Findings
Major Findings of SBL
Standard Bank Ltd, branch office is well decorated. It has all kinds of logistics
support- well furnished, high security system, central AC, well lighting etc. The
whole environment is very pleasant. Clients are satisfied with that. Customers are,
however satisfied with the overall service. Most of the clients claim that service
charge of this bank is very reasonable which have increased customer satisfaction
level. One thing I have found that customers are not satisfied with the transaction
hour and with the ATM booth system. They want availability of this system.
Whenever I asked about the quality of service, clients agree that the quality of
service of SBL is good. Because they are offering lots of service and that are
important. SBL offers those services what customers want. SBL always tries to
maintain the service quality. SBL is committed to their clients regarding good
relationship.
This is the most important part of my report titled General banking activities of
Standard Bank Limited (Mohammadpur Branch). In findings part I am interpreting
the results of my study which are stated below in points:
Most of the clients have FDR. Among 764 accounts, 238 numbers of clients have
FDR account in 2011, because SBL FDR offers higher rate of interest. For a month
duration the interest rate is 9%, for 3 months duration interest rate is 11%, for 6
months duration interest rate is 11.5% and for 1 year duration interest rate is 12%.
Account opening procedure of the bank is lengthy; also introducer is a problem for
the new clients.
Most of the clients received their MICR check book within 4-6 days after providing
their requisition.

Short term deposit rate is comparatively lower in SBL. SBL provides 4 percent for
below 5 crore where Pubali bank provides 7 percent.
The bank should introduce their own ATM facilities, at present they are using the
ATM booths of other banks. For per transaction using DBBL ATM booth it costs Tk. 11
for their SBL clients.
The statements are generally issued two times in a year, but sometimes it is
issued several times according to the necessity of the customers. The necessity of
such statement of accounts was presumably felt in order to keep the account
holders apprised of the position of their accounts so that their confidence in the
banker remains unshaken. For bank statement SBL Charges Taka 230 per annum.
The employees of GB department are very helpful to their customer regarding open
an account, to write down deposit book & cheque book etc.
Bank provides debit or credit card to their account holder when necessary, but the
process is lengthy.
The bank newly introduced the telephonic banking services under general baking
division. Employees of General Banking Division of SBL responsive to provide their
new telephonic services.
Complain box of the branch is not routinely checked by the branch manager.
SBL (Mohammadpur Br) needs some technological advancement regarding its
current MIS. At present the bank uses Stealar software for general banking purpose
which is not effective enough to handle huge number of clients.
On the job training is not sufficient for the employees of General Banking Division
of SBL.
The SBL Mohammadpur Br. Sends the instruments through Inter Branch Debit
Advice (I.B.D.A) to clearing house for clearing.
For enjoying locker service, clients of SBL have to give charge yearly Tk. 1500, Tk.
1250 and Tk. 700 for large, medium and small locker respectively.
Lack of motivation for the employees of SBL in the current restructure regarding
achieving individual target. The management does not review each employees
performance in case of achieving their target.
Chapter 08
Recommendations & Conclusion of SBL
Recommendations
Standard Bank Limited is a well established bank in Bangladesh. It is providing high
quality services to the customer since 1999. But it has some limitations that are
mentioned above. Some recommendations are made to overcome these problems
which are shown below-

Increased managerial supervision is very much needed to assess whether the target
no. of account is opened within specified time period.
General banking division should be divided into more sections because in General
banking division there are six sections which are directly related with customer. To
improve service for their clients SBL should increase number of employees in
general banking division to provide better services. Bank should improve personal
relationship with their client through a well structured general banking division.
Bank should provide emphasis on IT infrastructure to deliver superior service to the
customers, they should introduce new software to handle huge number of clients.
SBL should introduce prime rate for the best customers which will attract the good
customers. It is observed that sometimes irregular clients got facilities instead a
regular customer who does not get necessary facility.
To motivate the employees of SBL the bank should restructure the remuneration
structure of the employees by setting individual target for each employee for a
specified period. The manager should review each employees performance in case
of achieving their target.
Introducer is an important factor for opening an account. Most of the new clients do
not have introducer. Bank should concentrate into the problem to increase new
customers.
Bank should make the procedure of issuing card short and try to issue the card
quickly.
Complain or suggestions box for the customers should be monitored regularly to
identify the dissatisfaction areas of the clients.
To increase the level of customer satisfaction bank should offer new product and
provide better service depends on customers needs. They can introduce Islamic
Banking wing in Mohammadpur Branch.
Monthly providing of account statements may increase customers loyalty to the
bank. Also the statement charge should be reduced as it is frequently needed today
by their clients.
Bank should introduce Night banking like BRAC bank if possible. Then customer will
be benefited and satisfaction level will automatically increase.
Conclusion
Lots of new commercial bank has been established in last few years and these
banks have made this banking sector very competitive. So, now banks have to
organize their operation and do their operations according to the need of the
market. Banking sectors no more depend on a traditional method of banking. In this
competitive world this sector has trenched its wings wide enough to cover any kind
of financial services anywhere in this world. The major task for banks, to survive in
this competitive environment is by managing its assets and liabilities in an efficient
way.

As an internee student in STANDARD Bank Bangladesh Limited at Mohammadpur,

Branch, Dhaka I have truly enjoyed my internship from the learning and experience
viewpoint I am confident that three month internship program at STANDARD Bank
Bangladesh Limited will definitely help me to realize career in the job market. Its a
new branch with one and half year operation only but I think it would be able to
increase the wealth because of the location.
During the course of my practical orientation I have tried to learn the practical
banking to realize my theoretical knowledge, what I have gathered and going to
acquire from various courses. It is great pleasure for me to have practical exposure
of STANDARD Bank Limited, because without practical exposure it couldnt be
possible for me to compare the theory with practice.
So in conclusion it can be said that every organization has its positive as well as
negatives and in case of STANDARD Bank Bangladesh Limited existence of the later
one is less than the earlier one and as the management is determined to reach the
pick of success it seems that in near future the negatives will be eliminated. Eleven
years is a very short span of time and the organization, which can establish itself as
one of the most reputed private commercial Bank in the country within this short
period deserves special credit and with their able leaders STANDARD Bank will reach
the highest level of success very shortly. I wish the bank all success prosperity in
their field.
Standard Bank Limited