1.

1 Introduction
Jamuna Bank Limited is a financial institution that operates with the objective to complete the economic and financial principles of banking area. Banking sector plays a significant role in achieving the high economic growth of the country. A bank is a financial institution whose main aim is to earn profit through exchange of money and credit instruments. So, the banking system occupies an important place and plays an important role in a nations economy. In recent time this sector has been changing a lot due to regulation, technological innovation, globalization etc. banking sector in Bangladesh is lagging behind in adopting these changes. Bank is the oldest institution that is contributing toward the development of any economy It is treated as an important service industry in modern world. Now a days the function of the bank is not limited in the same geographical limit of the country. Due to globalization and free market in economy, this industry facing much competition in the country and the implementation of WTO will further increase competition. The overall performance of the bank does not only depend upon the banking industry itself but also on performance of economy where it is operating. The Banking sector in Bangladesh is different from the banking sector in developed countries. This is one of the major service sectors in Bangladesh economy and can be divided mainly in to four categories- Nationalized Bank, local Private Bank, Specialized financial Institutions, and Foreign Banks.

1.2 Origin of the Report

After completion of 4 years BBA program, three months organizational attachment is must. So the preparation and submission of this report is partial requirement for the completion of the Bachelor of Business Administration (BBA).This report is outcome of the three month long internship program conducted in Jamuna Bank Limited, one of the reputed private commercial banks of the country. I decided to work on the general banking activities of the Jamuna Bank Limited. The report focuses on the overview of general banking activities. While working in the bank I found that the standard operating procedures carried out by the bank.

1.3 Objectives of the study

The main objective of study is to know the "general banking activities-An overview of Jamuna Bank Limited". And the specific objectives are: To appraise the principal activities and evaluate performance of the Jamuna Bank Limited. To find out how its present strategy is working. To observe the working environment. To find out the SWOT of JBL. To find the potential of future growth of the bank. To gain an idea about the financial performance of JBL.

1.4 Scope of the study

This internship is a part the Bachelor of Business Administration (BBA) degree that provides on the job experience to students. I was starting my job on July 10, 2008 placed at Jamuna Bank Limited, Dilkusha branch as an internee for three months duration. This internship program provide me learning experience and knowledge in several areas. During the first few week of my internship period, I was able to get accustomed to the working environment of Jamuna Bank Limited. The scope of the study on General Banking Activities.An overview of Jamuna Bank Limited. It is hardly possible to become familiarized with the total operation of the bank decently within a short period of time. In this report it has been tried to focus on the general banking activities of the bank. The scope of the report encompasses the areas covered by the organization part, evaluation part.Maximum endeavor has been carried out to focus on the total General Banking Operation conducting the bank, which has included in the internship part. The organization part start with the history of Jamuna Bank Limited and end with ultimate performance of the Jamuna Bank Limited.

1.5 Methodology of the study

It is very difficult to collect relevant data from a person other than the regular employees of the bank, Because information relating to the performance of the branch office usually is restricted to be disclosed without the permission of the head office or approval of the appropriate authority. Thats why I frequently have to visit head office, and to take help from many other sources for getting relevant information. The sources of information used are: Primary Data are collected through: Observation for the total internship period. Conducting oral discussion with both customers and staff of the branch. Deskwork during my practical training. Secondary Data collected from: From the organizations Brochures/ Annual report Online information Research report regarding the bank.

1.6 Limitations of the study

Although the officials were so busy, they gave me wholehearted cooperation in the time of internship also in preparing this report. It was such nice experience I have gathered from JBL. But I have faced the followingproblems that may be limitations of the study.

Lack of records Sufficient books, publications and figures were not available. If this limitation were not been there, the report would have been more useful.

The study has the following limitations: One of the main limitation of the study is inadequate access to information, which has hampered the scope of the analysis required for the study. The time is insufficient to know all activities. It was very difficult to collect the information from various personnel for their job constraint. Because of the limitations of information, some assumption was made. So there may be some personal mistake in the report.

2.1 Overview of Jamuna Bank Limited

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001. Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. Currently the Bank has 35 (Thirty Five) branches: 14 in Dhaka, 6 in Chittagong, 2 in Gazipur, 3 in Sylhet, Bogra, 2 in Naogaon, 1 in Munshigang, 1 in Shirajganj, 1 in Rajshahi and 1 in Narayanganj (including Nine Rural Branches). The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures. Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only Seven years. The bank has already ranked at top of the quality service providers & is known for its reputation. Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. The operation hour of the Bank is 9:00 A.M. To 5:00 P.M. from Sunday to Thursday with transaction hour from 9:00 A.M. to 3:00 P.M. The Bank remains closed at Friday and Saturday including government holidays.

2.2 Objectives of JBL

To earn and maintain CAMEL Rating 'Strong'. To establish relationship banking and improve service quality through development of Strategic Marketing Plans. To remain one of the best banks in Bangladesh in terms of profitability and assets quality. To introduce fully automated systems through integration of information technology. To ensure an adequate rate of return on investment. To keep risk position at an acceptable range (including any off balance sheet risk). To maintain adequate liquidity to meet maturing obligations and commitments. To maintain a healthy growth of business with desired image. To maintain adequate control systems and transparency in procedures. To develop and retain a quality work-force through an effective human Resources Management System. To ensure optimum utilization of all available resources. To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.

2.3 Strategies of JBL

To raise capital up to TK.1000.00 million by 2004. To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. To strive for customer satisfaction through quality control and delivery of timely services. To identify customers credit and other banking needs and monitor their perceptions towards our performance in meeting those requirements. 6

To review and update policies, procedures and practices to enhance the ability to expand better service to customers. To train and develop all employees and provide them adequate resources so that customers needs can be responsibly addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employees in a timely fashion. To cultivate a working environment that fosters positive motivation for improved performance. To increase direct contact with customers in order to cultivate a closer relation between the bank and its customers. To diversify portfolio both in the retail and wholesale market.

2.4 SWOT Analysis of JBL

SWOT analysis is an acronym of an organizations strengths, weakness, opportunities, and threats. This underlying assumption of analysis is that mangers can better formulate a successful strength after they have carefully reviewed the organizations strengths and weakness in the light of the threats an opportunities, presented by the environment. With my little experience I would like to mention the SWOT of JBL bellow.

Strengths:
Satisfactory capital base. Low infection in loan Exposure Prospective IT infrastructure

Weakness:
Limited market share. Exposure to large loan Excessive dependency on term deposits.

Weak fund management. High cost of fund. Islamic Branch funds are not ring fenced

Opportunities:
Regulatory environment favoring private sector Development. Credit card. Small and medium enterprises

Threats:
Increased competition in the market for quality assets. Supply gap of foreign currency. Over all liquidity crises in money market

2.5 Operations, products and services of JBL

Operations:
Values of Jamuna Bank Limited: To be one JBL by holding and guiding the values. To have a strong customer focus and to build relationship based integrity; superior service and standard bank benefit. To strive for private and sound growth, to work as a term to serve the best interests of the organization. To work for continues business innovation and improvements. To values and respect people and make decision based on merit. To provide recognition and reward on performance. To value open and honest communication.

Branch Networks:
The number of branches of Jamuna Bank Limited is now 35. And very soon the authority is going to open few more branches at important places. Branches are: Mohakhali branch, Dhaka, Sonargaon road branch, Dhaka, Moulvi bazar branch. Dhaka, Goala bazar branch, Sylhet, Agrabad branch,Chittagong, Dilkusha branch. Dhaka, Beani bazar branch, Sylhet, Sylhet branch, Dhaka, Shantinagar branch. Dhaka, Gulshan branch, Dhaka, Dhanmondi branch, Dhaka, Noyabazar branch ( Islami Banking Branch), Dhaka, Mohadevpur branch, Noagoa, Noagaon baranch, naogaon, Khatungonj branch, Chittagong, Konabari branch, gazipur, Bhatiyari branch, Chittagong, Foreaign Exchange branch, Dhaka, Jubilee road branch (islami banking), Chittagong, Chistia branch, Dhaka, Bogra branch, Bogra, Baligaon branch, Munshigonj, Narayangonj branch, narayangonj Motujheel branch, Dhaka, Rajshahi branch, rajshahi, Bashurhat branch, Noakhali, Dholaikhal branch, Dhaka, Bahaddarhat branch, Chittagong, Sirajgonj branch, Sirajgonj, Banani Branch, Dhaka, Ashulia branch, Dhaka, Mawna branch, gazipur, Dinajpur branch, dinajpur, Kushtia branch, Kushtia, Kadamtali branch. Chittagong. Maintaining procedure of accounting statement at branch level: The branch of the bank maintain their account to monthly, quarterly, half-yearly, and yearly.

Products of JBL
Deposit scheme: Besides Current Deposit Account, Savings Deposit Account, Short Term Deposit Account, Fixed Deposit Account JBL provides the following customer friendly deposit schemes: Lakhpati deposit Scheme, Kotipati Deposit Scheme, Monthly Benefit Scheme, Education Savings Scheme, Millionaire Deposit Scheme, Marriage Deposit Scheme, Double/ Triple growth deposit Scheme, Monthly savings Scheme etc.

Services Of JBL
Corporate Banking:
The motto of JBL's Corporate Banking services is to provide a personalized solution to our customers. The Bank distinguishes and identifies corporate customers' need and designs tailored solutions accordingly. Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our 9

corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of businesses and industries. Agro processing industry (Import Substitute / Export oriented) Textile Spinning, Dyeing, printing, Export Oriented Garments, Sweater. Food & Allied, Paper & Paper Products, Engineering, Steel Mills, Chemical and chemical products etc., Telecommunications, Information Technology, Real Estate & Construction, Wholesale trade, Transport Hotels, Restaurants, Non Bank Financial Institutions, Loan Syndication , Project Finance Investment Banking, Lease Finance Hire Purchase International Banking, Export Finance, Import Finance

Personal Banking
Personal Banking of Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available to all a unique mixture of easy and consummate service quality. They make every endeavor to ensure their clients' satisfaction. Their cooperative & friendly professionals working in the branches will make your visit and enjoyable experience.

Online Banking
Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from any of its 30 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj and Munshigonj. Their valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra. All the existing customers of Jamuna Bank Limited will enjoy this service by default

2.6 Visions of JBL

To become a leading banking institution and to play a pivotal role in the development of the country.

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2.7 Mission of JBL

The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

2.8 Corporate Slogan of JBL Your Partner For Growth 2.9 Growth themes of JBL
There are three themes of JBL for their growth Introducing card network and electronic banking. Expanding personalized services. Building strong presence in the market with reputation.

2.10 Future Trust of JBL

Full on-line banking. Introducing more innovative products and services. Opening new branches including Islami banking branch. Dealing Room Service for Corporate Customers and high net worth individuals. Expansion of business network at home and abroad.

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2.11 Business Performance

JBL has registered a steady growth in all spheres of its operations and expects to attain better results in the days ahead.

2.12 JBL Corporate Culture

Employees of JBL share certain common values, which help to create a JBL culture: The client comes first. Search for professional excellence. Openness to new ideas and new methods to encourage creativity. Quick decision-making. Flexibility and prompt response. A sense of professional ethics.

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2.13 Organogram of JBL

Chairman

Managing Director (MD)

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Senior Executive Vice President (SEVP)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Executive Vice President (EVP)

SVP (Board Secretary)

SVP (HRD)

SVP (Credit)

SVP

SVP

VP

VP

SAVP

SAVP

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3.1 Overview on General activities of Jamuna Bank Limited

Jamuna Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. JBL provides customer service to their customers. At the period of internee I found the following of JBL at Dilkusha branch. Dispatch Account Opening Cheque clearing Local Remittance Cash department Accounts. Foreign exchange Credit All the employees of Dilkusha branch helped me to complete my job and I tried to describe my knowledge, which I gathered from my internship period.

3.1.1 Dispatch:
The main function of dispatch division is dispatching all types of documents such as OBC, IBC, LBC, and different types of letter, different advice Also dispatch division receives letter and documents, which are may be come from the different branches of JBL, other banks, negotiation and opening bank(incase of export and import) in the name of Jamuna Bank Limited. The staff involve with dispatch division maintain two types of mail, which is Inward mail & Outward mail.

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Inward mail: When staff receives any letter or documents from out side of the branch then he done following function which is arranged at sequentially: First put receive seal on the letter or document Put a serial number Register in the inward book with receiving date. Outward mail: When it is necessary to dispatch any types of letter or document outside of the Dilkusha branch the dispatch staffs done following job, which are, arrange sequentially: Put serial numbers register on outward mail register book with date. Outward dispatch is done in by courier service: Courier services are used when documents or letters dispatch to other branches of Jamuna Bank Ltd. It has been seen that courier services payment has made by monthly basis.

3.1.2 Account Opening:

Before discussion about account opening, first we have to know different types of target customers of Jamuna Bank Ltd. Individual Partner Join stock Public Sector Trustee/clubs/ associates / and different types if institutions. Jamuna Bank Ltd. offer different types of account for their target groups. These are as follows Current account

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Saving account Monthly savings Scheme Fixed Term Deposit account (FDR) Short term deposit (STD) Following are broadly explaining all this type of account:

Current Account (CD):

Current account is that types account where depositor can withdraw his deposited money at any time there is no restriction. Current account can be divided into four types, such as:Individual current account Proprietary current account Current partnership account Current account for limited companies. In the below given the requirements which are need for opening current account: For individual current account: Two copies passport size photo An introducer, who have an account in JBL, Dilkusha Branch. Ward commissioner or chairman certificate or national ID card. Mention sources of earnings. For proprietor current account: Trade license TIN number An introducer, who have an account in JBL, Dilkusha branch Seal of the applicant required

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Ward commissioner or chairman certificate or National ID card. For current partnership account: Partnership agreement Trade license An introducer, who have an account in JBL, Dilkusha branch Ward commissioner or chairman certificate or national ID card. Current account for limited companies: Memorandum and articles of association of the company Power of attorney Resolution of the board of directors. Following documents which is certified by the chairman of the company: List of directors Certificate of commencement of business Certificate if incorporation.

Saving account (SB):

Saving account is that account whose interest rate is higher than current account and saving account can be open by individual, joint name or club, association etc. Requirements for opening individual saving account: Two copies pass port size photo Passport number no (if any)/ National ID card. TIN number ( if any)

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An introducer, who have an account in JBL, Dilkusha branch Name of nominee Two signatures on the specimen signature card. Requirement for opening joint saving account: Two copies pass port size photo(both parties) The amount can be received by any person signature or two persons signature jointly An introducer who maintaining an account in the JBL, Dilkusha branch Ward commissioner or chairman certificate Three copies others laws/ rules and regulation duly certified by the chairman. Rules for opening saving account: Account opening money at least 500 taka. If deposit holder wants to close his/her account then he should pay 100 taka as cancellation charge. Savings account interest rate is 7.50% (for urban and rural) In case of saving account cheque book is 10 leaves.

Monthly Savings Scheme (MSS)

Savings is the best friend in bad days. Small savings can build up a prosperous future. Savings can meet up any emergences. JBL has introduced Monthly Savings Scheme (MSS) that allows saving on a monthly basis and getting a handsome return upon maturity. If anyone wants to build up a significant savings to carry out youre cherished Dream, JBL MSS is the right solution.

Fixed Term Deposit account (FDR)

Fixed term deposit (FDR) application form has been used both for application form and as a credit voucher for the bank. In case of FDR specimen signature card used and client give three signatures on the specimen card. In the case of FDR it is clearly mention that when this amount will be withdrew account holder receive principle amount plus interest.

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FDR account holder gets a FDR slip that is provided by the JBL officer. FDR slip contains name of account holder, deposited amount, And interest, and time of maturity. If depositor withdrew his money before maturity date he does not get any interest. If account holder lost FDR slip then indemnity bond is required to issue a duplicate FDR slip. FDR account can be open by individually or joint name, In the case of FDR holder death, his nominee will get the amount.

Short Term Deposit (STD)

Short term deposit account interest is calculated at daises and its interest rate is 7.00 %. Documents required for opening short term deposit: Two copies of pass port size photo. TIN number An introducer who has an account in JBL, Dilkusha branch. Trade license. Ward commissioner or chairman certificate. Every day, authorized officer check out which (MSS,FDR, STD) account interest has to pay. He credit voucher for interest excise duty. On every (MSS, FDR, STD) account holder has to paid 105 govt. tax, another interest. Here authorized officer issued one debit voucher and one credit voucher Debit Head Credit Head Party Account Sundry deposit Vat

Table: Debit & Credit account

Issuing Cheque Book

There are three types of cheque book in JBL those are: Ten leaves cheque book used only for savings account. Twenty five leaves cheque book is used foe current account. Fifty leaves cheque book use for current account but this is provided those depositors who are loyal customer or those transactions have done randomly.

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Cheque book issue to a new account holder: New account holder has to fill up an application form which is provided by JBL. After verifying depositor signature the authorized officer put branch seal and put his/ her signature than date, name of the account5 holder, account number, cheque number and recorded in to register book When all this function is successfully completed the client gets his cheque book and put his signature on the register book. Cheque book issue to an existing account holder: When an existing deposit holder wants to withdraw anew cheque book then should be give a requisition slip to the bank which he get from previous cheque book then authorized officer verifying deposit holder signature. After verifying signature authorized officer put branch seal and put his/ her signature than date, name of the account5 holder, account number, cheque number and recorded in to register book then client gets his cheque book and put his signature on the register book. In the case of lost cheque book: It has been observed that when a cheque book has been lost by account holder, then account holder must have filled an indemnity bond which has been authorized by introducer. In spite of these account Jamuna Bank Limited has others schemes for its customers. These schemes are below:

Lakhpati Deposit Scheme

To become a lakhpati is a dream to most of the people of Bangladesh especially to the lower and lower middle class income group. They experience their expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the above in mind JBL has introduced "Lakhopati Scheme" which has flexibility report of maturity and monthly installment as per affordable capacity.

Monthly Benefit Scheme (MBS)

Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons having ready cash and desiring to have fixed income on monthly basis out of it without taking risk of loss and without enchasing the principal amount. This scheme offers highest return with

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zero risk. Everyone can plan your monthly expenditure with the certain monthly income under the scheme.

Education Savings Scheme

Education is a basic need of every citizen. Every parents want to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should be pre-arrangement of fund to ensure higher educations the children. Otherwise higher education may be hindered due to change of economic condition, income of the parents at the future time when higher education shall be required. Today's higher education is becoming expired day by day. Parents can get relief and can have peace of mind if they can arrange the necessary fund for higher education of their children. As such, JBI, has introduced 'Education Savings Scheme' which offers you an opportunity to build up your cherished fund' by monthly deposit of small amount it at your affordable capacity or initial lump sum deposit to yield handsome amount on a future date to meet the educational expenses. Under this Scheme you have the different attractive options to avail the future benefit i.e. withdrawal of the total amount accumulated in lump sum or withdrawing monthly benefit to meet educational expense keeping die principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Marriage Deposit Scheme

Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion. It can be a great help to the parents if there is any scope of deposit of a modest mount as per their financial capacity, which groves very fast at high rate of interest yielding a sizeable amount on maturity. With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an opportunity to build - up your cherished - fund by monthly deposit of serial, amount at your affordable capacity.

Double/Triple Growth Deposit Scheme

For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL has introduced Double/Triple Growth Deposit Scheme that offers to make

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double/triple money within 6(six) years and 9.5 (nine and a half) years respectively resulting a high rate of interest.

3.1.3 Cash Department

Payment through cash: Clients give their cheque with their signatures are justified with specimen signature cards. If the signature is correct, then A/C number is posted into the computer and required balance in their account. Payment through transfer: This transfer is made through account to account, not in cash. Cash department is the important department of any bank. All the monetary transaction in occurred in this department. The main work of the cash department is the opening of cash. The beginning balance is registered while receiving & paying different amount of cash. (Cash received and cash payment)

3.1.4 Remittance
Remittance is one of the main components of banking. The main activities of remittance section are: Telegraphic Transfer (TT) Demand Draft (DD) Payment of Pay order Pay slip

3.1.4.1 Local Remittance

The offers various kinds of remittance allover the country through it branch network. Telegraphic transfer, travelers cheque and draft and cheque can do remittance. There are two types of remittance as are: Inward remittance: When one bank sends these T.T., MT, T.C, or cheque to another bank within the country it will be called inward remittance. Outward remittance: When one bank got this T.T, M.T, T.C and cheque from any bank outside the country then it will be called outward remittance.

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3.1.4.2 Foreign Remittance

Jamuna Bank Ltd. has a network of 19 branches in Bangladesh and 4 more branches are going to be added to network soon. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time. Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby ( where they reside/work) to send their money to their dear ones in Bangladesh. To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank Ltd.

3.1.5 Loans and Advances

Though there was an unfavorable business environment due to political turmoil throughout the year JBL was in constant efforts to explore different areas of credit operation and could raise the credit portfolios to Tk.12796.63 million in 2006 with an increase of Tk.1784.80 million (16.21%) over that of the preceding year. The total credit as on 31.12.05 was Tk.11011.83 million. In order to ensure compliance with regulatory requirements for avoiding risk of exposure to single borrower, concentration on large loans, to bring in excellence in credit operation in relation to risk management, yield, exposure, tenure, collaterals, security valuation etc. The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and industrial activities through an effective delivery system. Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having productive purpose. Loan is provided to the rural people for agricultural production and other off-farm activities. Loan pricing system is customer friendly.

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Prime customers enjoy prime rate in lending and other services. Quick appreciation, appraisal, decision and disbursement are ensured. Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of Bangladesh) and operational procedures of the Bank. Interest is calculated on daily product basis but charged and accounted for quarterly on accrual basis. Interest on classified loans is kept in interest suspense account as per Bangladesh Bank guidelines and such interest is not accounted for as income until realized from borrowers. Interests are not charged on bad / loss loans as per instructions of Bangladesh Bank. Advances are stated at gross value. Here there is a table of Interest rate of provision on credit.

Particulars Rate General Provision on unclassified loan and 1% advances Provision on Housing Finance, Loans for 2% professionals and Small Enterprise Provision on other consumer financing 5% Provision on short term Agri. Credit & 5% Micro Credit other than Bad Loss Provision on Special Mention Account 5% Loan and Advance Provision on substandard loan and advance 20% Provision on doubtful loans and advances Provision on bad / loss loans and advances 50% 100%

Table: Interest rate of provision on credit

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3.1.5.1 Sanctioning Loans and Advance

To have a clear idea about the credit management of JBL the following points are essential. a. Credit policy of the Bank b. c. Credit Sanctioning Authority of JBL and Processing and Screening of credit proposal

3.1.5.2 Consideration factors for loan:

When JBL bank gives loan that time they should consider some factors, such as Safety: Safety is the most important for sanctioning loan. At the time of repayment borrower may be unable to pay the loan amount. For that reason when bank sanctioning loan they should take collateral security from the borrowers. Security: Banker should be are in the selections of security for their loan. They should properly evaluate the value of security it should not less then or equal of loan amount. Liquidity: When banker sanctioning any loan then they should ensure the liquidity position of JBL. Adequate yield: Banker should select those investment which interest rate is higher then savings interest rate. Diversity of risk: Bank should not invest one or two sectors. If it is happen then their investment risk is higher then market risk. In this case bank should maintain investment portfolio. So if one investment makes loss another can cover that loss.

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3.1.6 Cheque Clearing

The scheduled banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central bank where every day the representative of the member banks gather to clear the cheques. The place where they meet and settle their dues is called the clearing house. The clearing house sits for two times a working day. The members submit the claimable cheques in the representative desks of the banks and vice versa. Consequently the debit and credit entries are given. At the end debit summation and the credit summation are calculated. Then the banks clear the balances through the cheque of the Bangladesh bank. The dishonored cheques are sorted and returned with the memo. The main function of this section is to collect instrument on behalf of the customer through Bangladesh bank through clearing house. Outward bill Collection (OBC) & Inward bill for collection (IBC)

Upon the receipts of the instruments this section examines the following things: Whether the paying bank is within the Dhaka city Whether the paying bank is out side of Dhaka city And whether the paying bank is their own branch. Outward bills for collection (OBC): Collection of bills, which are beyond the clearing range and collected through OBC mechanism. Inward bills for collection (IBC): Collection of bills which Jamuna bank does as an agent is called collection through IBC mechanism.

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Dishonored cheque:
The cheque is dishonored Jamuna Bank sends a memorandum to the customer stating the reason in the following way: Insufficient Fund Not arrange for Effects not clear may be presented again Exceeds arrangements Full cover not received Payment stopped by drawer payees endorsement irregular/illegible/required payees endorsement irregular, required banks confirmation Drawers signature differs/required Alteration in date/figure/words/required drawers full signature Cheque is post dated/ out of date/ mutilated. Amount in word and figures differs. Crossed cheque must be presented through a bank. Clearing stamp require/requires cancellation Addition to bank discharge should be authenticated Cheque crossed Account payee only Collecting banks discharge irregular/required.

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Rules for passing cheque:

In order to enable the branches to facilitated their day to day transaction smoothly/ efficiently/ accurately, the following schedules of power for passing of cheque/ instrument signature of vouchers shall come into force with immediate affect. An authorized officer shall pass cheque for less than taka 10000 singly after proper supervision in computer print out. Cheque for taka 10000 and above but below taka 50000 shall be passed jointly by any two authorized officer after proper supervision in computer print out by any officer. He will however also ensure that no factitious credit in the account as being posted on the day referring credit vouchers of the day. Cheque for taka 50000 and above shall be passed under joint signature of two officers one of whom must be manager of the branch. The procedures regarding supervision of cheque as at (2) above must however be followed. All suspense A/C (debit) vouchers sundry deposit vouchers, credit A/C debit voucher, expenditures A/C vouchers must be signed by the incumbent in charge of the branch with any other authorized officer. As at the close of business of the day or transactions (both debit and credit) shall be checked by referring to computer print out and relative cheque vouchers. Apart from the above it will also be ensured that the total amount of debit and credit totaling to current A/C, savings, STD, and term deposit corresponds with the total of cash receipt/ payments, transfer clearing (both outward and inward). Clearing department also maintain the following workGive posting of voucher in computer Prepare supplementary Prepare advice

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3.1.7 Accounts department

Account division is the most important for all banks. In accounts division maintain all types of accounting procedures of Dilkusha branch and support the branch to take different types of initiatives by providing various data and information. Prepare daily statement of affairs Maintain transfer book Prepare daily, weekly, monthly and quarterly, half yearly and annual statement Reconciliation of CIBTA All administrative works.

3.1.8 Import & Export handling and Financing

3.1.8.1 Import Financing
Is the most important method of import -financing International trade take place between sellers and buyers located in different countries. The parties to a trade transaction are not always known to each other. Even if they are known to each other the seller may not have full confidence in the carried worthiness of the buyer or the buyer may not like to pay before he actually receives the goods. In letter of credit the bankers credit worthiness is substituted for the credit worthiness of the importer. Under a bank- cards letter of credit, the issuing bank gives a written undertaking on behalf of the buyer that the bank will honor the obligation of payment or expectance as the case may be on presentation of stipulated documents. As the request of the importers bank issue the letter of credit at a merging by the govt. instruction. Bail: does not generally issue the letter of credit less then 50% margin. JBL follow the margin prescribed by the government strictly.

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The total import business handled by the Bank in 2006 was Tk.15457.80 million compared to Tk.12151.90 million in the preceding year registering a rise of Tk.4305.80 million being 27.20 percent. A sizeable L/C's were also opened by the Bank in the year under review. The import items included industrial raw materials, machinery, consumer goods, fabrics, accessories etc.

Figure: Trends of Import financing of JBL

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3.1.8.2 Export Financing

The Exporter needs finances at various stages, some at pre-shipment stage and the other at the post shipment stage. The Bank handled export business worth TO 1583.70 million in the year under report. In 2005 total export business handled by the Bank was Tk.6521.80 million. Thus there was an increase of Tk.5061.90 million in export business handled by the Bank, being 77.62 percent over the preceding year. The major export item was ready made Garments.

Figure: Trends of Export Financing pf JBL

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4.1 Internship Position and daily works

I worked on the general banking sections. Sometimes I worked in account opening section, some times in remittance and some times in clearing section. Mainly I worked in clearing section. In this section I received cheques, calculate the total numbers of received cheques and finally bundle those cheques to send in Bangladesh Bank. When all of our branches cheques come from the house (Bangladesh bank), I gave entries all the cheques (CD, Loan, STD, SOD, DD, PO) in the register book with the name of bank, account number, types of account, and amount of money. When the authorized officer of cash confirm the return cheques. I marked up all the return cheque number, name of the bank and amount of the money. After that attach the return memorandum with the return cheque and send those cheques for second house. Then after 3 p.m. attach all the receiving cheque with the printed memorandum. When all the branches come with their cheques; accumulate all cheques and made them prepare for the first house of next day morning. In the account opening section; I deal with the clients about to open new account, deposit, opening and operation of deposit accounts and their legal aspects. Inthis three months of my internship period I worked in various departments of JBL. But among the all departments I like the clearing department most. Because the work of clearing department is very important and interesting; actually this department does the toughest work in the bank. I feel very comfort with the members of clearing department too. All the members of this department helped me a lot to complete my internship report.

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5.1 Financial Performance of JBL

The performance of JBL is evaluated on the basis of financial Statement Analysis.

5.2 Financial Highlights

Serial no. 1 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Item Paid up Capital Total Capital Capital surplus/(deficit) Total Assets ( excluding off balance sheet items) Total Deposits Total Loans & Advances Total Contingent Liabilities & Commitments Advance Deposit Ratio % of classified loans against Total Loans Profit after taxation Amount of classified loans Provision kept against Classified loan Provision surplus / deficit Cost of Fund ( Deposit cost & overhead cost) Interest Earning Assets Non-interest earning Assets Return on Assets (ROA) Return on Investment (ROI) Income from Investment Earning per Share (Taka) Net Income per Share ( Taka) Price Earning Ratio( Times) Net Asset Value ( Taka) Amount in taka (except ratio) 2007 2006 1,225,714,200 1,072,500,000 1,872,719,991 1,701,825,130 364,612,891 666,269,650 26,405,404,056 20,157,016,559 20,924,021,090 16,617,450,517 6,409,260,234 79.42% 5.06% 89,110,861 840,339,000 518,852,491 12.26% 24,004,627,748 2,400,776,308 0.34% 8.80% 474,482,522 7.27 8.04 53.61 135.14 17,284,811,793 12,796,630,479 6,574,379,439 74.03% 5.03% 253,400,897 643,365,000 181,466,000 12.18% 18,346,059,035 1,810,957,524 1.26% 10.02% 255,662,108 23.63 31.94 12.26 145.68

22. 23.

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5.3 PROFIT
In 2006 Jamuna Bank Limited posted an operating profit of Tk.701.32 million as against Tk.419.94 million in 2005 with a spectacular growth of 67.00 percent over the preceding year. After having made necessary provisions for loans and advances in accordance with the instructions of Bangladesh Bank Net Income before Tax (NIBT) stood at Tk.499.97 million in the year under review against Tk.363.31 million in the preceding year registering a growth of 37.62 percent. An amount of Tk. 246.57 million has been kept as provision for payment of Tax. Thus Net Income after tax and provision stood at Tk.253.40 million in 2006 which was Tk.199.82 million in 2005.

FIGURE: Profit of JBL from 2001-2006

5.4 CAPITAL STRUCTURE

Jamuna Bank Limited has a conviction of maintaining a strong capital base in carrying on opereat operation on June 03,2001 with a paid-up capital of Tk.390.00 million divided into 3.90 million o of Tk.100 each. The authorized capital of the Bank is Tk.1600 million divided into 16.00 million of Tk.100 each. The Bank's paid-up capital as at 31st December 2006 stood at Tk.1072.50 million.Tk was raised through initial public issue of 4.29 million ordinary shares of TkA 00 each with a premiu- each while Tk.214.50 million was raised by issue of Bonus Shares in the ratio of 1:4, i.e. one bonus _s-holding of 8.58 million ordinary shares as on 31.12.2005, for every 4 shares out of profits upto the Thus, 34

as on 31st December 2006, the total shareholder's equity and reserve stood at Tk.1701.82 million

6.1 Findings
During internship period in Jamuna Bank Limited at Dilkusha Branch following problems are identified. Human resource of any organization is considered as a valuable asset. But human resources, in the branch, are not equipped with adequate banking knowledge. Majority of the human resources have lack of basic knowledge regarding money, banking finance and accounting. Without proper knowledge in these subjects, efficiency cannot be optimized. There is shortage of computer in general banking section. Sometimes the shortage of computer makes some unfortunate event in that section. Though JBL using very popular software i.e. Flora bank on--line software but the use of it is quite difficult for the employees. (According to the statement of some employee of JBL who has the experience to use more then one banking software). JBL are not taking their clearing cheque for other- They are using IBC/OBC systems to take that kind of clearing cheque. JBL not providing the credit cards in market which now a days one of the most important part of banking. So for it they are loosing too many customers. I have found that most of the employees are not satisfied with their salary, most of them think that they are not getting proper salary comparing with other banks. The capital of Jamuna Bank is not enough to serve properly. Even not to provide loan for consumer. Customers are not fully satisfied with the service of Jamuna bank. Since a number of new banks are coming to existence with their extended customer service pattern in a completely competitive manner. In our country financial problem is a great constraint in foreign trade. JBL Is very conservative for post-shipment finance. Now a day's on-line banking is a very common service for private commercial bank. JBL, provide On-line banking service but they take source charge for it, if the customers do not use his/her mother branch.

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6.2 Recommendations
JBL authority should train up their HR personnel, so that they can get a clear idea about banking knowledge There should be adequate number of computer to serve the general service to the customers. Employees should be more expert & trained to use the Flora software. JBLs clearing should be properly online. Credit card should be available for the general customers of JBL. Salary structure should be revised for the satisfaction of the employees comparing with the other commercial private banks. Capital structure should be stronger to serve properly. Customer-services must be made dynamic and prompt. Now a days, people especially business people have very little time to waste. So the bank should make its service prompt so that people need not give more time in the banking activities Foreign exchange operations of other banks are more dynamic and less time consuming. JBL should take some initiative to compete with those banks. To encourage customers to use On-line banking facility this service charge should not be taken charge from the customers. Customer service of bank has a greater impact on its customer. To provide smarter customer service they need a call center department is very popular now a day. Jamuna bank can introduce some new schemes for their consumers like: student saving account, Hajj scheme, etc. JBL should have to improve their financial condition so that they can provide consumer loan, such as: can loan, house loan, education loan etc.

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7.1 Conclusion
A modern commercial banking perspective is extending business. The rewards are modest; the penalties for bad looking are enormous. And commercial banks are great monetary institutions, which can play a significant role in welfare of society and country more than any other institutions. JBL has gained firmed confidence in the minds of customers within a short period of its operation. Analyzing the whole scenario which are tried to highlight in this report, we can conclude that, the performance of Jamuna Bank Ltd. is quite satisfactory but there is stillroom for improvement. Understanding this present competitive market pressure the Bank Management should start some special new services to survive in this competitive market. JBL is a new generation bank. It is committed to provide high quality financial services to contribute to the growth of G.D.P. of the country through stimulation trade & commerce, Accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country. JBL authority should introduce some new schemes for their customers so that more customers can get their services. And they also should take care of customer services because banks main capital is their services they are selling their services basically. So a little improvement in their management can help the bank to reach in the list of successful banks.

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REFERENCES

Book
David, A.,Decenzo. & Stephen,p.Robbins (2004-2005), Human Resource Management (7th edition), New York, Jhon Wiley & Sons, Inc. Garrison, R.H. & Noreen, E.W., Managerial Accounting (10th Edition), New York: McGraw-Hill Khan, M.Y., & Yain, P.K., Financial Management (5th Edition), Tata: McGraw-Hill Weygandt, Y.Y.Eieso,D.E. & Kimmel, P.D., Accounting Principal (5th Edition), Wiley.

Annual Report
1. Annual Repot 2005-2006 Jamuna Bank Ltd. 2. Annual Report 2006-2007. Jamuna Bank Ltd. 3. Prospectus of Jamuna Bank Limited. 4. Report, General Activities of Exim Bank Ltd. 5. Report, General Activities of Standard Bank Ltd

Internet
Official website Jamuna Bank Limited: www.jamunabankbd.com Official website Bangladesh Bank: www.bangladeshbank1.org

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