Prepared For

SAVP& Head of Branch

Prime Bank Ltd.
Bashundhara Branch
Bashundhara, Dhaka

Prepared By
Abu Taher Mohammad Rubel
Asian University of Bangladesh
Program : BBA, 20th Batch

Major in Finance

ID NO:200410086
Dhanmondi Campus
Dhanmondi, Dhaka-1207

July 2008

The SAVP
Head of Branch
Prime Bank Ltd.
Bashundhara Branch
Bashundhara, Dhaka

Subject: Submission of Internship Report

Sir,
I am pleased to submit the Report as a partial fulfillment of BBA program. I
tried my best to present this report on General Services of Prime Bank
Ltd.. I tried my best to work sincerely to cover all aspects regarding the
matter. Though I have some limitations to prepare the report due to scarcity
of organized data, enough time and knowledge about banking sector, I have
thoroughly enjoyed in preparing this report which has contributed
significantly to our understanding on the essentials and importance practical
knowledge.
However, if you need any clarification, suggestions, directions for further
improvement of the report, I shall be obligate to provide with further
explanation. I sincerely hope that you will appreciate my effort.

Sincerely yours,
(Abu Taher Mohammad Rubel)

Acknowledgment
At the inception of preparing this report, I would like to express
gratitude to the Almighty Allah for special blessings in completing it.
There is an English proverb Two heads are better than one. So, no
one can obtain a noble objective alone. This internship report is an
accumulation of many peoples endeavor. For this, I am indebted to a
number of people who helped me to prepare this and for their kind
advices, suggestions, directions, and cooperation and proper guidelines
for this.
First of all, I would like to thanks to our honorable Teacher Prof: Md.
Ashraf Hossain, Head of Business Administration, Asian University of
Bangladesh. for giving me such exposure to the practical business
world.
My heartfelt thanks go to Md. Amzad Hossain, Senior Assistant Vice
President & Head of Branch, Prime Bank Limited, Bashundhara
Branch. He has instructed supervised me very much cordially. I also
thank all employees of this Branch especially Md. Ershad Kamal,
manager operation of the Branch, who always helped me to perform my
tasks properly. I have been placed in Basundhara Branch for whole
time and supervise me regularly to perform the General Banking
Activities and give me information and suggestions to prepare this
report.

Table of Content
Particulars
Page No.
Executive Summary

Chapter I:

Introduction to the Report

1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.

Origin of the Report

Rationality
Objectives
Duration
Area of Operation
Methodology
Limitations

8
8
9
9
10
10
11

Chapter II: History of Prime Bank Ltd

13-14

Chapter III: General Banking Services of Prime Bank Limited

3.1
3.2
3.3
3.4
3.5
:

Introduction
16
Different Department of GB
16
Different types of customer/Account holder
16
A/C Opening & Dispatch Department
17
Requirements/Necessary formalities for opening each type
Of A/c.
19
3.6 Eligibility to open an A/c
21
3.7 Accounts Opening of Customer with the Bank
21
3.8 Issuing of a Cheque
23
3.9 Clearing Section
27
3.10 Collection Section
28
3.11 Accounts Section
29
3.12 Cash Section
31
3.13 Conclusion
32

Chapter IV: Other Banking services

4.1 Online Branch Banking
4.2 Master Card
4.3 SWIFT
4.4 Deposit Schemes of Prime Bank

34-35
36-37
37
38-45

Chapter V: Bank Rating

CAMEL Rating of 48 Banks

47

Chapter VI: Recommendation, conclusion and Bibliography

Recommendation
Conclusion
Bibliography

51
52
54

Executive Summary

The report covers the three months internship program as the BBA
requirements. From 16 April 2008 to 15 July 2008, I have worked with the
Department of General Banking Services of Prime Bank Ltd. at
Bashundhara Branch. The objective of the project is to analyze the Overall
Banking Services and General Banking Services offered by Prime Bank Ltd.
Yes, Prime Bank Ltd. a bank with a difference is a fast growing private
commercial bank which is primarily drive by creating opportunities and
pursuing market niches not traditionally met by conventional banks. General
banking services are the core activities of the bank and I have prepared this
report based on this department. So this part is the main part of this report.
The services of Prime Bank Ltd. have already been established through out
Bangladesh.
I have prepared this report with Six chapters. All chapters include about
Prime Bank Ltd. In chapter one, I have introduced the report such as origin,
rationality, objective, duration, and area of operation, Methodology of the study
and limitations of the report.. Then in chapter Two, I have discussed the
history of Prime Bank Ltd.
In chapter three, I have highlighted the main part of this report that is
general banking services offered by prime bank ltd. Here I have discussed
procedure of opening an account, types of product/account, procedures of
transferring money such as demand draft (DD), telegraphic transfer (TT),
pay order (PO), collection section and finally clearing section of Prime Bank
Ltd.
In chapter Four, I have Showed other Banking Services of Prime Bank Ltd.
Here I have discus Online Branch Banking, types of product/account.
In chapter Five, I have also showed the Bank Rating
finally in chapter Six I conclude the report with Recommendation,
Conclusion& Bibliography.
6

Introduction to the Report

1.1. Origin of the report:

Basically, this report is based on practical working experience gathered
from an exclusively intensive internship program at PBL Bashundhara
Branch. Unlike university arranges internship program for their
students after the completion of theoretical courses (i.e. after final
semester) of the program of Bachelor of Business Administration
(BBA). Each intern must be assigned with a specific project that is
assigned by the concerned organization and for most the internship co
coordinator of their university must approve the project. In this
particular report, we the internee of the previously mentioned program
and our concerned organization is Prime Bank Limited. This bank is
one of the prominent private and
Hence I placed in the Prime Bank Limited, Bashundhara Branch from
April, 2008 to July, 2008.
.

1.2. Rationality:
Internship program is the practical aspect of our theoretical learning. It
makes a bridge between the gap of classroom learning and practical
learning. In this view, Internship plays a pivotal role for each
professional degree like BBA. The study will help formulate suitable
policies taking into consideration different ideas, suggestions and
feelings of the customers and bankers. Further more, it may noted that
Prime Bank executives who are really executing the policies undertaken
by the top management will have a chance to communicate their
interaction and provide necessary feedback.
8

1.3

OBJECTIVE OF THE STUDY

The objective of the study is to gather practical knowledge regarding

banking system and its operations. A theoretical class of BBA provides
theories regarding different subject whereas practical orientation gives
us the chance to view those systems and their operations. More
precisely we can identify the objectives of this report as follows:
To earn practical experience and knowledge about the
banking operations and corporate functions performed by a
commercial bank like Prime Bank Ltd.

To determine the most common obstacles those are facing

by the clients of PBL and their probable solutions/
indications.
To observe the working environment in commercial banks
like PBL
To observe the various investment indicators of PBL.
To examine the rules and regulations of PBL.
To identify the problem, if anybody faced by the officials
dealing in banking business and to examine their view to
solve them.
To gather comprehensive knowledge on overall banking
functions of PBL.
To acquire practical knowledge about the overall activities
of PBL.

1.4. Duration:
The duration of the study was a very short span of time. It was three month
long internship program (April2008 to July 2008). It was very much hard to
complete a report as well as assigned tasks by the Bank. So I had to complete
this study facing very much time presser.

1.5. Area of Operation:

This report covers only General Banking Services, activities and
procedures of Prime Bank Limited. Especially this report emphasizes on
the comparison of different bank interest rate and deposit schemes, in a word
financial products. It considers only one Branch from all well known private
Banks.

1.6 Methodology:
METHODOLOGY OF THE STUDY
The Methodology of the study can be discussed under the following
major heads.
Data sources:
The data sources used to prepare this report delineated as follows:

A) Primary sourcesPrimary sources data collecting from

Face to face conversation with officers and staffs.
Face to face conversation with clients

10

B) Secondary sourcesThe secondary sources of data collecting from the following

sources: Different textbooks & materials
Different manuals & circulars of Prime Bank Ltd.
Website of Prime Bank Ltd
Reports submitted by several internship students

1.6.1. LIMITATIONS OF THE STUDY

The present study was not out of limitations. From the beginning to
end, the study has been completed sincerely and truthful. But some
problem arises from conducting in the study. During the study it was
not possible to visit the whole area covered by the banks although the
financial statements and other information regarding the study have
been covered. Some limitation are given stated below@ The main constraint of the study is insufficiency of information,
which was required for the study. There are various information
the bank employee can't provide due to security and other
corporate obligations.
@ Due to time limitations many of the aspects could not be
discussed in the present report.
@

Every organization has their own secrecy that is not revealed to

others. While collecting data through interviewing the employees,
they did not disclose much information for the sake of the
confidentiality of the organization.

11

History of Prime Bank Ltd

12

Accordingly, Prime Bank Ltd. was created and commencement of

business started on 17th April 1995. The sponsors are reputed
personalities in the field of trade and commerce and their stake ranges
from shipping to textile and finance to energy etc
As a fully licensed commercial bank, Prime Bank Ltd. is being
managed by a highly professional and dedicated team with long
experience in banking. They constantly focus on understanding and
anticipating customer needs. As the banking scenario undergoes
changes so is the bank and it repositions itself in the changed market
condition.
Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal
Banking services covering all segments of society within the
framework of Banking Company Act and rules and regulations laid
down by our central bank. Diversification of products and services
include Corporate Banking, Retail Banking and Consumer Banking
right from industry to agriculture, and real state to software

The bank has consistently turned over good returns on Assets and
Capital. During the year 2007, the bank has posted an operating profit
of Tk. 3257 million and its capital funds stood at Tk 6382 million. Out
of this, Tk. 2275 million consists of paid up capital by shareholders and
Tk. 2659.21 million represents reserves and retained earnings. The
banks current capital adequacy ratio of 11.50% is in the market. In
spite of complex business environment and default culture, quantum of
classified loan in the bank is very insignificant and stood at less than
1.35%.
Prime Bank Ltd., since its beginning has attached more importance in
technology integration. In order to retain competitive edge, investment
in technology is always a top agenda and under constant focus. Keeping
the network within a reasonable limit, our strategy is to serve the
customers through capacity building across multi delivery channels.
Our past performance gives an indication of our strength. We are better
13

placed and poised to take our customers through fast changing times
and enable them compete more effectively in the market they operate

14

15

3.1. Introduction:
When I decided to perform as an intern and selected by PBL, I had been
placed in the General Banking Department for whole time of my internee.
Several activities are performed here. I have prepared this report based on
this department. So this is the core part of this report.
3.2 Different Departments Of General Banking
It has five major parts in the branch to perform. The sections are:
i.

Account opening section

ii.

Cheque clearing

iii.

Cash

iv.

Remittance

v.

Accounts section

3.3 Different Types Of Customers/ Account Holder:

Any one can open an account in Prime Bank Ltd. if he is capable of entering
a valid contract and a banker is satisfied his confide and willing to inter into
the necessary business relation with him. So any one of the following types
of customers can open account:i.

Individual ( personal )

ii.

Joint

iii.

Proprietorship ( sole traders / registered or unregistered )

iv.

Joint stock companies ( private/ public ltd. companies)

16

3.4 Account Opening and Dispatch Department:

Account opening is the gateway to the bank. The relationship between a
banker and its customer begins with the opening of an account by the
customer. For this, account opening is considered the most important
function of a commercial bank. All banks generally maintain a separate
department to open accounts.

The function of accounts opening department can be classified into the

following three categories:
1. Supplying various accounts related information to the
customers.
2. Opening of account and
3. Issuing cheque books.

1. Supplying various accounts related information to the customers:

When a customer comes to open an account with a bank, s/he needs to be
informed about various information relating to account opening. Account
opening department enthusiastically provides necessary information to the
customer.
Following information is supplied to the customer depending on their
requirements:
Type of accounts maintained by the bank
Requirements/Necessary formalities for opening each type of accounts
Eligibility to open an account etc.

17

Types of accounts maintained by PBL

Accounts based on operations as under:
Current Account (CD A/C)
Short Term Deposit Account (STD A/C)
Savings Bank Account (SB A/C)
Fixed Deposit Receipt Account (FDR A/C)

Accounts based on Nature of Customers as under:

Single/Individual Account
Joint individual Account
Sole Trader/ Proprietorship Account
Partnership Account
Company Account etc.
Savings accounts are opened for single/individual and joint individual
customer. Business organizations/enterprises are not allowed to open savings
account.

18

3.5 Requirements/Necessary formalities for opening each type of

accounts:
Single/Individual Savings Bank Accounts:
Introduction of customer (Must be either by an account holder
(SB/CD A/C) or an employee of the bank.
Photographs-Two copies (attested by the Introducer)
Photocopy of valid passport/Citizenship Certificate from Chairman or
Ward commissioner/Certificate from the employee of the bank.

Add:

Transaction Profile
Signature on Money laundering Circular

Joint Individual Account:

No additional requirements/formalities other than the Single/Individual
Savings Bank Accounts.
Single Individual/Joint Individual CD A/C
Requirements/Formalities as like as SB A/C, except here introducer must be
a CD A/C holder of the bank.
Proprietorship CD A/C

Introduction of the customer (Must be by a CD A/C account holder

or an employee of the bank.

Photographs- (Two Copies) of the proprietor.

Valid Trade License.

Company Seal.
19

Photocopy of valid passport of the proprietor/Citizenship/

Certificate from Chairman or Ward commissioner/Certificate from the
employee of the bank.

Add:

Transaction Profile
Signature on Money laundering Circular
Signature on KYC form

Partnership CD A/C

Introduction of the partners (Must be by a CD A/C account holder

or an employee of the bank.
Photographs- (Two Copies) of every partner.
Valid Trade License.
Seal.
Date of incorporation.
Photocopy of valid passport of the proprietor/Citizenship
Certificate or Identity Certificate from Chairman or Ward
commissioner/Certificate from the employee of the bank.
Partnership Letter.

Add:

Transaction Profile
Each partners Signature on Money laundering Circular
Each partners Signature on KYC form

Limited Company A/C

Introduction (Must be by a CD A/C account holder or an employee

of the bank
Photographs- (Two Copies)
Valid Trade License
Company Seal
Resolution of the Company on companys letterhead
Certified and attested copy (attested by MD or Chairman) of
Memorandum of Association and Articles of Association
20

Certified and attested copy of Certificate of incorporation

List of Directors
Photocopy of valid passport/Citizenship Certificate or Identity
Certificate from Chairman or Ward commissioner/Certificate from the
employee of the bank.

Add:

Annexure E: Identification of Directors and Authorized Signatories

Annexure D: Directors Signature on KYC form

Transaction Profile

3.6 Eligibility to open an account:

Anyone capable of entering into a valid contract can open an account with
the bank. A minor can also open an account under guardianship or alone if
s/he is at least 12 years old. But a minor is not allowed to open a current
account.
Lunatic, Insolvent person/Drunker/Liquidator/Any other individual or
organization by law cannot open an account with bank.
3.7 Accounts Opening of Customers with the Bank
Opening of an account involves certain formalities, which varies according
to different types of accounts as well as various categories of customers. The
bank supplies following printed forms during opening an account of a
customer:
o Account opening Form
o Specimen Signature Card
o Deposit Slip
o Cheque Book Requisition Slip
o KYC Profile Form
o Transaction Profile Form

21

Customers are requested to read all the instructions carefully and then fill up
the forms properly. Account opening officer must have to check all the forms
or documents i.e. whether the customer duly signs them where necessary. As
well as introducer must introduce the customer by putting signature in the
space provided on the account opening form.
After completion of all the formalities by the customer, Prime bank
officials have to perform the following functions chronologically:
Scrutinizing account opening form and Specimen signature card
Getting the approval of accounts by authorized officer

Putting account number on the form

Putting entry in the account opening

register
Posting all the account information in the computer
Issuing a cheque book
Maintaining all relevant papers/documents in
separate file in the name of the every account
holder
Sending the specimen signature card to the cash
department
Sending a thanks giving letter to the New account
openers address
Maintaining all relevant papers/documents in
separate file in the name of the every account
22

holder
3.8 Issuing of a Cheque Book
A cheque book is issued to the customer at the time of the account opening
or may by issued after 2-3 days from account opening. And additional
cheque book is issued at the request of the customer according to his/her
necessity.
Followings are the formalities during issuing a cheque book:
Getting the cheque book requisition slip signed by the account holder
By verifying the signature, issuing the cheque book
Writing down the account number on each leaf of the cheque book
Making entry to the cheque issue register
Supplying the cheque book to the account holder after getting proper
acknowledgement from the account holder
Inland Remittance Department
Remittance Department: This department deals with transfer of money from
one place to another place. Remittance can be classified as inland remittance
and foreign remittance; however, remittance department mainly deals with
inland remittance rather than foreign remittance. Instruments used for inland
remittance as under:
o Pay Order (P.O)
o Demand Draft (DD)
o Telegraphic Transfer (TT)

23

Pay Order: A Pay Order is a written order on a specific instrument i.e.

generally called Block issued by a bank to pay a certain sum of money to
specific person, Organization or a bank. It is called bankers cheque, as it is
issued by a bank as well as drawn upon on a bank.
Issuance of Pay Order: issuance of pay order involves following steps:
Upon requests of customer, bank supplies prescribed application
form
Applicant has to provide detailed particulars of him/herself as
well as beneficiary or receiver of the Pay Order
Total amount of the P.O must be written both in words and in
figures in the space provided
Credit vouchers are prepared; one for commission and another
for VAT
Now customer is requested to deposit the P.O amount along
with VAT and Commission charges to the cash department
Cash department releases the application form with authorized
signature and cash received seal
Now Pay Order is written on block which has three parts: First
part is retained by the issuing bank, Second part is for customer
and Third part is for the beneficiary of the Pay Order
In this stage all the information is entered into the P.O register

Payment or Encashment of Pay Order:

Issuing bank makes payment of Pay Order upon presentation through
clearing house. When the P.O does not consist of discrepancies, necessarily
the proceeds of Pay Order is credited to the account of payee/beneficiary.

24

However, before making payment of P.O, the signature of issuing officer is

verified and date of payment is recorded in the Pay Order issue register.

Demand Draft
A Demand Draft, which in brief is called DD. A DD is a written order on a
specific instrument of one branch of a bank upon another branch of the same
bank to pay a certain sum of money to or to the order of a specified person or
of a specified organization. In practice DD is not issued between two
branches within the same city.
Issuance of Demand Draft: Issuance of DD involves following steps:
Customer is asked to fill up a form in specific form provided by
bank which is also treated as a voucher
Commission and Charges are also mentioned in the form
Two credit vouchers; one for commission and another for VAT
is stapled with the form
Customer pays cash in the cash department with relevant
vouchers
Cash dept. receives cash and delivers vouchers after completing
necessary formalities
Now DD is prepared in a block
Branch-wise serial number is given on the draft
The draft number is written on the voucher
Draft block and voucher along with the register are sent to the
officer in charge for checking and then sent to manager/Second
in charge of the branch for authorization
The draft may be crossed if customer desires and finally
delivered to him/her against initial or acknowledgement on the
voucher

Payment of Demand Draft:

25

After receiving the DD, the drawer branch checks the date, amount both in
words and figures and signature. In case of Test DD, Test number must be
reconciled before payment. And then DD is cancelled and payment date is
noted in the register. If the DD is crossed, the payment is made through
clearing house.
Telegraphic Transfer
In case of Telegraphic Transfer, which in brief is called TT, an applicant has
to fill up prescribed form supplied by bank to inform all the particulars about
the sender as well as the receiver/beneficiary of the TT. Besides, following
points should be checked in this regard:
Full name of the beneficiary and his account number if the
instruction here is credit to beneficiarys account, or full
address if instruction is there to advise & pay
Commission and Telegram charge are recovered from customer
A cost memo has to prepare for customer in this regard;
containing the amount of TT, commission and Telegram charges
Customer has to deposit cash in the cash department along with
voucher and application
Remittance depart finally checks all the particulars viz. name of
the beneficiary, account number of the beneficiary, name of the
bank, name of the branch and mode of payment etc.
Each and every TT must be Tested whatever the amount of TT
Authorized officer then send the TT message through
Telex/Telephone
The issuing branch also sends a TT confirmation advice to the
drawer branch and one copy is retained by the branch
Payment of Telegraphic Transfer (TT):
The payment of TT is paid only when TT test numbers reconcile. TT
receiving branch maintains TT message receiving memo. On agreement of
Test, the serial number of TT is entered in the TT payable register. The
issuing branch informs if any number is mismatched or omitted. Two
vouchers are prepared in this regard as under:

26

PBL General A/C****** Branch----------Dr.

Bills Payable A/C..(TT payable)-------------Cr.
The TT amount is then credited to the beneficiarys account if the
beneficiary/receiver of the TT is an account holder of the branch; otherwise a
Pay Order is issued if the beneficiary/receiver of TT is an account holder of
another bank.

3.9. Clearing Section:

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. This is an arrangement by the central bank where everyday
the representative of the member banks gathers to clear the cheque. Banks
for credit of the proceeds to the customers accounts accept Cheque and
other similar instruments. The bank receives many such instruments during
the day from account holders. Many of these instruments are drawn payable
at other banks. If they were to be presented at the drawer banks to collect the
proceeds, it would be necessary to employ many messengers for the purpose.
Similarly, there would be many cheque drawn on this the messengers of
other banks would present bank and them at the counter. The whole process
of collection and payment would involve considerable labor, delay, risk and
expenditure.
All the labor, Risk, delay and expenditure are substantially reduced, by the
representatives of all the banks meeting at a specified time, for exchanging
the instruments and arriving at the net position regarding receipt or payment.
The place where the banks meet and settle their dues is called the
Clearinghouse.

3.9.1. Activities of the Section:

(a) Preparation of Clearing Outward and Inward Lodgment and record
maintenance of the same.
(b) Batch posting as and when required.
On receipt of instruments, the same is endorsed here. Then clearing section
will sent IBDA to head Office for clearing purpose and on receipt of IBCA

27

from Head Office amount is credited to customers account and vice versa. If
the instrument is return then the same is given back to the customer.

3.10 Collection Section:

Checks, drafts etc. are drown on bank located outside clearing house are sent
for collection. Motijheel Branch collects its clients above-mentioned
instruments from other branches of PBL and branches other than PBL. 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. So it places dual role as follows:
i)
ii)

Collecting Banker
Paying Banker.

3.10.1. Activities of the Section:

Preparing of Outward and Inward Collection Item.

Inter-Branch Transfer.
Batch posting and checking as and when required.
Other works as and when require.

Collection is done when

(i) Paying Bank is located out side Dhaka City.
(ii) Paying Bank is other branches of PBL situated inside Dhaka City.

(i)

Paying Bank is outside Dhaka City:

Collection department of Motijheel Branch (Principal Branch), PBL sends

outward bills for collection (OBC) to the concerned paying bank to get inter
Bank Credit Advice (IBCA) from paying Bank. If the paying bank dishonors
the instrument, the same is returned to principal Branch.

28

(ii)

The Paying Bank of their own branches inside Dhaka

City:

Collection Department sends transfer delivery item to other branches of

same bank situated inside Dhaka City. Upon receiving IBCA customers a/c
is credited.

3.10.2. Procedures for Outward Bills for Collection:

deposit-slip Depositing the cheque

along with
Crossing of the cheque are done
indicating the Branch as collecting bank

Endorsement Payees A/C will be

credited on realization is given
Entries are given in the Outward
Clearing Register

3.11. Accounts Section:

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. Any deviation in proper recording may hamper public
confidence and the bank has to suffer a lot. Improper recording of
transactions will lead to the mismatch in the debit side and 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 Accounts Department.

29

Besides these, the branch has to prepare some internal statements as well as
some statutory statements, which are to be submitted to the Central Bank and
the Head Office. This department prepares all these statements.

3.11.1. Functions of Accounting Department:

We can divide the functions of accounting department into two categories.
One is day-to-day task and another is periodical task.
a. Day to day functions: Here day-to-day function refers to the every
day tasks. Accounting department of PBL performs the following day to day
functions:
Recording of transaction in the cashbook, general and subsidiary
ledger.
Preparing the daily position of deposit and cash.
Making the payment of the expense of the branch.
Recordings of inter branch fund transfer.
Checking whether all the vouchers are correctly passed.
Recording the voucher in the voucher register.
Packing and maintains the total debit and total credit vouchers.
b. Periodical functions: Periodical functions of accounts department
include the preparation of different weekly, fortnightly, monthly, quarterly
and annual statement. The accounts department prepares the following
statements:
Monthly statement of deposits, loans and advances, profit and
loss etc.
Quarterly statement of deposits, loans and advances, profit and
loss etc.
Yearly statement of deposits, loans and advances, profit and loss
etc.
Yearly statement of classified Loans and Advances.
Statement of Affairs.
Yearly Budget of the Branch, etc.

30

3.12Cash Section:
Cash section is a very sensitive organ of the branch and handle with extra
care. Operation of this section begins at the start of the banking hour. Cash
officer begins his/her transaction with taking money from the vault, known
as the opening cash balance. Vault is kept in a much secured room. Keys to
the room are kept under control of cash officer and branch in charge. The
amount of opening cash balance is entered into a register. After whole days
transaction, the surplus money remain in the cash counter is put back in the
vault and known as the closing balance. Money is received and paid in this
section.

3.12.1 Cash Receipt:

At first the depositor fills up the Deposit in Slip. For saving account
and current account same Deposit in Slip is used in this Branch.
After filling the required deposit in slip, depositor deposits the
money.
Officers at the cash counter receives the money, count it, enter the
amount of money in the register kept at the counter, seal the deposit
in slip and sign on it with date and keep the banks part of the slip.
Other part is given to the depositor.
In this branch, i.e., Motijheel Branch, two different officers maintain
two different books for entering such entries. All deposits of saving
account are maintained by one officer and other accounts by another
officer.
At the end of the day entries of both of these registers are cross
checked with the register kept at the cash counter to see whether the
transactions are correct or not.

3.12.2. Cash Payment:

When a person comes to the bank to cash a cheque, (s)he first gives it to
the computer desk to know the position of the check and posting of the
cheque. If the account has sufficient fund the computer in charge will
post it into the computer, will sign it and seal it.
This cheque is then sent to the concerned officer. There are two officers
who verify the cheques one for savings and similar types of account
and another for current and similar types of account.
31

 After receiving the cheque respective officer first checks it very

carefully for any kind of fraudulent activity. (S) He also checks the date
of the cheque, amount in word, amount in figure and signature of the
drawer.
If the instrument is free of all kind of error the officer will ask the bearer
to sign on the back of it.
He will then put his/her initial beside the bearers signature. (S)he will
also sign it on its face, will write down the amount by red pen.
Then the cheque will be sent to the cash counter. At the cash counter
bearer will be asked again to sign on the back of the instrument.
The cash officer will then enter the details of the cheque in his/her
register and will pay the money to the bearer.
At the end of the day these registers will be compared to ensure the
correctness of the entries.

3.13 Conclusion:
Bank is the largest organization of mobilizing surplus domestic savings.
Attractive Savings Schemes are offered by PBL such as Contributory
Savings Scheme, Monthly Benefit Deposit Scheme, Special Deposit
Scheme, Education Savings Scheme, Fixed Deposit Scheme, Prime Bank
Money Scheme, Prime Bank Insured Fixed Deposit Scheme as well as
different accounts to save money. Schemes are designed concentrating in
different purposes to help the fixed income group people to help in need.
Bank-Officials are also whole-hearted and dedicated to serve their customer
with utmost care.

32

33

4. 1 Online Branch Banking

The Bank has set up a Wide Area Network (WAN) across the country
to provide online branch banking facility to its valued clients. Under the
Scheme, clients of any branch shall be able to do banking transaction at other
branches of the bank.
Under this system a client will to be able to do following type of transactions
# Cash withdrawal from his/her account at any branch of the Bank
irrespective of location.
# Cash deposit in his/her account at any branch of the Bank irrespective of
location.
# Cash deposit in other's account at any branch of the Bank irrespective of
location.
# Transfer of money from his/her account with any branch of the Bank.
Any amount can be deposited or transferred under Prime Line. In the system,
however, at present there is a limit for cash withdrawal through bearer or by
account holder himself.
Terms & Conditions of Online Branch Banking Service
ONLINE BRANCH BANKING SERVICE is designed to serve its valued
clients. Under this system, you shall be able to do the following type of
transactions:
# Cash withdrawal from your account at any branch of the Bank
# Deposit in your account at any Branch of the Bank.
# Transfer of money from your account to any other account with any
Branch of the Bank
Transaction Limit
01.Maximum ceiling of cash withdrawal by self is Tk. 10,00,000/- (ten lac)
only per transaction
02. Maximum ceiling of cash withdrawal by third party (bearer) per
transaction is below Tk............... Only (please mention the limit you wand to
place).
34

03. Cash deposit/transfer by online transaction is unlimited

Online Transaction Membership Fee
Membership fee of Tk. 50/- per month for the Online Branch Banking
Service.
Charges for Online Transaction
1. There will be no charge for transaction within the city where the
account is domiciled
2. Fee Tk. 50/- will be realized from the customers account for each
remote transaction (inter-city) for amount upto Tk. 1,00,000 (one lac).
3. Fee at the rate of 0.075% will be realized from the customers account
for each remote transaction of amount more than Tk. 1,00,000 (one
lac).
Who can get this service
The Clients who has account in prime bank or who will open account in
prime bank and would be interested to maintain substantial deposits in
Savings, Current or STD accounts, will be eligible to get Prime Line
Service.
How one can get this service
Intending and eligible clients have to apply in prescribed application form
to their branch (where account is maintained) to get the online service
from the bank. The client should submit two copies photographs and
signature cards alongwith the application form. To avail the Prime Line
service, no charge should be paid for online transaction within a locality
where the account is domiciled. But charges should be paid by the
customer for inter city online transaction
When a account will be activated for online
Within 15 days from the date of submission application a account will be
activated for online service
Prime Bank Limited obtained Principal Membership of Master-Card
International in the month of May 1999. Within a period of 6 months, the

35

bank successfully launched Master Card-Credit Card which created a new

dimension in its customer service and consumer financing.
The Special feature of the Prime Bank Master Card is that its bears the card
holders photo on the card, which is the first of its kind in Bangladesh and
adds security against misuse. Prime Bank Limited issues 4 types of cards.
These are Gold Local & International and Silver Local & International.
Local cards can be used in Bangladesh only.

4.2 Followings are the main feature of MasterCard Credit

01.Prime Bank Ensure High Level of Security by inserting your
Photograph on the Card.
02. 20 to 50 days credit form the date of transaction. When you receive
your monthly statement, you can either choose to pay in full or just
minimum due amount shown on the statement. No interest is charged if
you pay in full within payment due date
03. 24 hours a day, 365 days worldwide service.
04. No joining/administrative fees.
05. waiver of annual fees for International Card: If you accumulate
20,000 Prime Bank Bonus Point for your Gold Card or, 10,000 Bonus
Point for your Silver Card in a year then you enjoy our Card without fees(
$ 1 purchase: 1 Bonus).
06. Waiver of annual fee for Local Card: If you accumulate 10,000 Prime
Bank Bonus Point for your Gold Card or 8,000 Bonus Point for your
Silver Card in a year then you enjoy our Card without fees( Tk. 50/purchase : 1 Bonus point).
07. The Highest Prime Bank Bonus Point holder can enjoy free air ticket
Dhaka-Bangkok-Dhaka. (Business Class).
08. Cash advance facilities.
09. 1,39,00,000 locations accept MasterCard worldwide

36

Facilities Available with the Card :

The Card can be used for:
01.Making payments to Merchants against purchase of all goods and
services by the Cardholder form Marchant(s); and
02. Availing Cash Advances:
2.1 From any of PBL Branches or any member of MasterCard of any
Merchant authorized to make Cash Advances; as may be agreed upon
by PBL or
2.2 By the use of the Card on any ATM of PBL or of MasterCard. Subject
to these terms and conditions and in compliance with such
requirements, limitations and procedures as may be imposed by PBL,
any Merchant or MasterCard from time to time.

4.3 SWIFT
Prime Bank Limited is one of the first few Bangladeshi Banks who have
become member of SWIFT (Society for Worldwide Inter-bank Financial
Telecommunication) in 1999. SWIFT is members owned co-operative,
which provides a fast and accurate communication network for financial
transactions such as Letters of Credit, Fund transfer etc. By becoming a
member of SWIFT, the bank has opened up possibilities for uninterrupted
connectivity with over 5,700 user institutions in 150 countries around the
world.
SWIFT No.: PRBLBDDH

37

Deposit Schemes of Prime Bank Limited:

Bank is the largest mobilizer of surplus domestic savings. For
poverty alleviation, we need self employment , for self-employment
we need investment and for investment we need savings. In the
other words, savings help capital formations and the capital
formations help investments in the country. The investment in its
turn helps industrialization leading towards creation of wealth of
the country. And the wealth finally takes the country on road to
progress and prosperity. As such, savings is considered the very
basis of prosperity of the country. The more the growth of savings,
the more will be the prosperity of the nation.
The savings rate in Bangladesh is one of the lowest in the world.
In order to improve the savings rate, Financial Institutions
responsible for mobilization of savings should offer attractive
Savings Schemes so that the marginal propensity to save
increases. The savings do not, of course, depend only on the
quantum of income but largely depend on the habit of savings of
the people.

Contributory Savings Scheme:

This is a Savings Scheme in which a person gets the opportunity to
build up savings by contributing monthly installments and receives an
attractive fixed amount at the end of a specified term.
The Scheme is designed to help the fixed income group to save
money and build up a sizable funds with which they can go for some
income generating venture to improve the quality of their life and/or
meet any future financial obligations

The salient features of the Scheme are given below:

Minimum size of monthly installment shall be Tk. 500/- and multiplies of
Tk. 1000/-. Maximum installment size shall be Tk. 25,000/ The Deposit shall be for a period of 5 years.

38

Lump sum amount shall be paid after maturity or monthly Pension shall be
paid for the next 5 years according to the size of deposit. A brief chart of
lump sum amount and monthly pension installments payable are shown
below:
Size
of
monthly Terminal value
deposit (Taka)
years (Taka)

after

5 Pension for next 5 years

(Taka)

500/-

40,000/-

870/-

1,000/-

80,000/-

1,739/-

2,000/-

1,60,000/-

3,478/-

3,000/-

2,40,000/-

5,217/-

4,000/-

3,20,000/-

6,956/-

5,000/-

4,00,000/-

8,695/-

6,000/-

4,80,000/-

10,434/-

7,000/-

5,60,000/-

12,173/-

8,000/-

6,40,000/-

13,912/-

9,000/-

7,20,000/-

15,651/-

10,000/-

8,00,000/-

17,390/-

11,000/-

8,80,000/-

19,129/-

12,000/-

9,60,000/-

20,868/-

13,000/-

10,40,000/-

22,607/-

14,000/-

11,20,000/-

24,346/-

15,000/-

12,00,000/-

26,085/-

16,000/-

12,80,000/-

27,824/-

17,000/-

13,60,000/-

29,563/-

18,000/-

14,40,000/-

31,302/-

19,000/-

15,20,000/-

33,041/-

20,000/-

16,00,000/-

34,780/-

21,000/-

16,80,000/-

36,519/-

22,000/-

17,60,000/-

38,258/-

23,000/-

18,40,000/-

39,997/-

24,000/-

19,20,000/-

41,736/-

39

25,000/-

20,00,000/-

43,475/-

Short Term Deposit

01. A short term deposit (STD) account is a running account with
amounts being paid into and drawn out of the account continuously.
02. These accounts are called Demand Deposits or Demand Liabilities
since the banker is under obligation to pay the money in such deposits
on demand.
03. These accounts are generally opened by Business Organization,
Public Institution, and Corporate Bodies.
04. An STD account may be opened by an individual person.
05. It is an interest bearing deposit. Interest is calculated on daily basis as
per Banks Prescribed Rate and is credited to account on half yearly
basis.
Current interest rate on STD account is 6 Percent.

Education Savings Scheme

The educational expenses particularly the expenses for higher education
are sharply increasing day by day in our country. Sometimes, the
children are deprived of getting the desired level of education because of
the inability of the parents to meet their educational expenses. But the
parents would not feel any difficulty to defray such expenses if a proper
financial
planning
is
made
much
ahead
of
time.
Moreover, we are receiving demands from the Islamic minded people of
our country for an attractive Savings Scheme on the basis of Islamic
Sariah so as to encourage them to save in Islamic way for education of
their
children.

40

With this end in view, Prime Bank Limited has introduced a Savings
Scheme entitled Education Savings Scheme in accordance with the
principles of Islamic Sariah i.e., on the basis of profit and loss sharing.
The scheme provides a unique opportunity to the parents to make a future
provision for the educational expenses of their children when they enter
into Schools, Colleges and Universities out of the benefit of a small
amount of savings with the Bank at an opportune moment
The salient features of the Scheme are given below:
01.The Scheme shall be implemented through all Prime branches, though
it is specially designed for Islamic Banking branches.
02. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of
Tk. 5, 00,000/- at a time will be acceptable under the Scheme.
03. A specially designed Receipt shall be issued for the deposit under the
Scheme in the same manner as issued in case of FDR. Branches shall
use the ESS receipts that used for existing scheme.
04. The instrument shall be issued for a period of 5 years term.
05. On maturity a lump sum amount of Tk. 85,382/- shall be payable or
education allowance @ Tk. 1,854/- per month per Tk. 50,000/- shall
be payable on the basis of deposit amount for next 5 years starting
from the completion of the term as per following table. Income Tax
@10% on interest may be deducted at source at the time of payment
of lump sum amount.

Initial Deposit (Taka)

50,000/1,00,000/1,50,000/2,00,000/2,50,000/3,00,000/3,50,000/-

Lump
sum
payable
at
(Taka)
85,382/1,70,763/2,56,145/3,41,526/4,26,908/4,69,704/5,47,988/-

41

amountAmount of Education
maturityallowance per month
(Taka)
1,854/3,705/5,558/7,410/9,263/11,115/12,968/-

4,00,000/4,50,000/5,00,000/-

6,26,272/7,04,556/7,82,840/-

14,820/16,673/18,525/-

Double Benefit Deposit Scheme

01.The Scheme shall be implemented through all the branches of Prime
Bank Limited.
02. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiplies
thereof but maximum limit of Tk. 25,00,000/- (Taka twenty five lac) at
a time will be acceptable under the scheme.
03. The instrument shall be issued for 06 (six) years term.
04. At maturity after 06 (six) years double the amount of deposit will be
paid to the depositor.
05. Photograph of Nominee, duly attested by the depositor, shall be
obtained at the time of opening the account.
06. Normally no withdrawal will be allowed before maturity. But if any
depositor intends to withdraw his deposit before maturity, the
following rules will apply:
07. (a)No benefit including interest/profit shall be allowed for pre-mature
encashment within one year.
(b) If the accounts / deposits are closed / encashed after one year of its
opening, benefit shall be allowed on the deposit at normal Savings
Deposit rate
08. The instrument will be acceptable as collateral security against any
investment subject to registering lien with the issuing branch.

42

09. In case of death of a depositor, the amount of instrument will be paid

to the nominee, to the legal heirs of the depositor on production of
succession certificate.
10. In case of instrument is lost the procedure for the issuance of a
duplicate receipt will be the same as applicable in case of loss of FDR.
11. Under the scheme depostior can get free insurance facility.
12. Insurance coverange is only applicable to personal accident and
serious illness related insurance policy.
13 Depostor can take loan aginst his/her deposit under this scheme
14. At present no income tax will be deducted from the interest earned.
But in future for any change in the government policy Bank reserves
the right to deduct income tax.
Fixed Deposit Scheme
This type of deposit should be kept for a fixed term or period. Prime
Bank Limited deals with the following terms deposit.
Particulars

Interest Rate

1(One) month

8.00%

3(Three) month

11.50%

6(Six) month

11.50%

1(One) year

12.00%

43

Lakhopati Deposit Scheme

(a)Monthly Installment size, tenure and terminal value of the scheme will
be as follows:
Monthly Installment
Tenure
Size (Taka)

Amount to be paid after

maturity (Taka)

250/-

15 years

1,00,000/-

500/-

10 years

1,00,000/-

1,285/-

5 years

1,00,000/-

2,400/-

3 years

1,00,000/-

Prime Millionaire Scheme

Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00
for the tenor of 5/7/10 years respectively

Size of monthly Investment After the investment

deposit
(in Tenor
(in Tenor the terminal
Taka)
Year)
value of the Scheme
(in Taka)

Pension size of
installment
according to the
years Invested (in
Taka )

12,465/-

1,000,000/-

21,748/-

7,890/-

1,000,000/-

17,137/-

4,570/-

10

1,000,000/-

13,786/-

44

House Building Deposit Scheme

# The tenor of the House Building Deposit Scheme will be 5/7/10 years.
# Minimum Equity building amount shall be Tk. 10.00 lac.
Size
ofSize
ofInvestment Age
Limit
monthly monthly
Tenor (in(in Year)*
deposit indeposit in Tk.Year)
Tk.
(with
(without Insurance)
Insurance
)

After
the
investment
Tenor
the
terminal value
of the Scheme
(in Taka)**

4,570/-

4,705/-

10

18 to 35

1,000,000/-

7,890/-

8,045/-

18 to 38

1,000,000/-

12,465/-

12,640/-

18 to 40

1,000,000/-

9,135/-

N/A

10

18 to 35

2,000,000/-

15,770/-

N/A

18 to 38

2,000,000/-

24,925/-

N/A

18 to 40

2,000,000/-

* Age upper limit will be applicable for HBL facilities only

** Insurance Coverage will be restricted to terminal amount of Tk.
1,000,000/-(Taka Ten Lac) only, here the age limit will be from 18
years to 60 years
# A person can open more than one account but House Building Loan
facility shall be on one account only.
45

# Account in the name of minors can be opened too under the Scheme but
without insurance coverage.
# The installment shall be payable by the 8th day (in case of holiday the
next working day) of every month. Advance payment of any number
of installments is acceptable.

Chapter-V

46

CAMEL Rating of 48 Banks:

The capital adequacy, Asset quality, Management standard, Earning and
Liquidity rating (CAMEL) of all commercial banks on the basis of credit
management performance till December 2007 have been rated by
Bangladesh Bank (BB). It is mentionable that Prime Bank Ltd. got the top
position in A class banks.
.

CAMEL Rating:
Analyzing the overall operational activities of all commercial and
specialized banks; central bank, the regulatory authority of countrys banking
sector has ranked 6 A-class, 27 B-class, 8 C-class,5 D-class and 2 Eclass banks by the end of 2007, which was completed recently.

A-Class Banks:
1.
2.
3.
4.
5.
6.

Prime Bank Ltd.

Shahjalal Islami Bank Ltd.
Commercial Bank of Ceylon.
Citibank N.A.
State Bank of India
Standard chartered Bank

B Class Banks:
1. Eastern Bank Ltd.
2. Premier Bank Ltd.
3. The Trust Bank Ltd.
47

4. BRAC Bank Ltd.

5. Southeast Bank Ltd.
6. NCC Bank Ltd.
7. One Bank Ltd.
8. Standard Bank Ltd.
9. Woori Bank
10. Bank Alfalah Ltd.
11. National Bank of Pakistan.
12.Dutch Bangla Bank Ltd.
13.Exim Bank Ltd.
14.Mutual Trust Bank Ltd.
15.Jamuna Bank Ltd.
16.Bank Asia
17. Islami Bank Bangladesh Ltd.
18. Uttara Bank Ltd.
19. National Bank Ltd
20. The City Bank Ltd
21. Basic Bank Ltd.
22. Habib Bank Ltd.
23.HSBC
24. Pubali Bank Ltd.
25.Mercantile Bank Ltd.
26.Social Investment Bank Ltd.
27.Dhaka Bank.

C- Class Banks:
1. First Security Bank Ltd.
2. UCBL
3. Al-Arafa Islami Bank
4. Bangladesh Shilpa Rin Sangstha
5. IFIC Bank Ltd.
6. AB Bank Ltd.
7. Agrani Bank Ltd.
8. Rupali Bank Ltd.
48

D- Class Banks:
1. Sonali Bank Ltd.
2. Bangladesh Krishi Bank
3. Bangladesh Shilpa Bank
4. Janata Bank Ltd.
5. RAKUB

E-Class Bank:
1. Bangladesh Commerce Bank Ltd.
2. Oriental Bank Ltd.

49

50

After observing the operation procedure of PBL, I recommended

the following:
ATM:
Prime Bank has few ATM booths in the Dhaka city, but these are not
sufficient to give service to the customers .So Prime Bank has arranged
an agreement with Dutch Bangla Bank limited so that the customers of
the Prime Bank can use its booth. To give smooth service to the
customers Prime Bank should increase its own ATM Booth.

Branch:
Prime Bank should open branches in the all district towns besides
Dhaka city for expansion its business area.

Interest Rate: Prime Bank should Increase interest rate on FDR and
other deposit scheme.

Islamic Banking Branch: Bangladesh is a Muslim majority country,

so Prime Bank should increase their Islamic Banking Branch in Bangladesh.

51

In Bashundhara branch I have been working for 3 months, by this time I

have found some good strengths and opportunities, Prime Bank Bashundhara
Branch has a strong opportunity to achieve strong market in Bashundhara
area because it is situated in a appropriate and attractive place. In short time
Bashundhara Branch gathered 30 core deposit, this is a great achievement for
Bashundhara branch and also achieving healthy profit as a new branch.
From my view, this branch has some
are:

Strengths and Problems these

Strengths
1. Prime Bank has well reputation in the market. It is number one
Private commercial Bank in Bangladesh.
2. In Bashundhara branch efficient management practice.
3 Bashundhara branch is Well-furnished and Air-conditioned Bank.
4. Prime Banks Officers are highly educated.
5. Prime Banks Executives are highly qualified and experienced.
6. Credit Department of Bashundhara branch is strong prospective
department.
7. Prime Bank gathered maximum market share in Banking
business.
8. Prime Bank not engaged in unfair business practice.
9. Prime Bank has many attractive deposit schemes.
10. Prime Bank becomes more reliable to the all kind of people.

52

Problems:
I have founding some problem in Bashundhara branch prime
bank
1. In Bashundhara branch have no foreign exchange division
and this major problem of this branch.
2. Bashundhara branch taking only DESCO bill. But not
taking others bill like telephone, water, gas bill etc.

53

1. Different types of publications.

2. Discussion with the employee of particular Branch.
3. Practical experience from Branch
4. Website: www.prime-bank.com

54