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Chapter -01

Chapter -01

Introduction

Banks are the key financial institutions that play a vital role in the country’s economy and development. Globalization in the banking sector has thrown up opportunities as well as challenges. Competition is getting edge day by day. It paces with the continuous development occurring in the tremendous competitive environment.

Internship program is the systematic process for gathering, recording and analyzing of data about the subject that a student goes to learn on the program.

The aim of this Internship program is to connect practical knowledge with theoretical knowledge. Now the world is a competitive world. So everybody has to be expert in both practical knowledge and theoretical knowledge. There are numerous reasons for which I have chosen General Banking Department for my Internship. First of all General Banking Department is the most important Department of any bank as every clients has to enter into banking service through the General Banking. Secondly, As I am working in general Banking Division it will be convenience for me to make a report on General Banking .

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OBJECTIVE OF THE STUDY:

Gather knowledge about the practices followed by Jamuna Bank Ltd. in delivering services under General Banking Department. Other Objective of the report is to familiarize with the operation in the Banking arena including Management overview bank and analysis of banking operation in different section.

A.GENERALOBJECTIVE : • To analyze General Banking practices at JBL.

B.SPECIAL OBJECTIVE:

→To provide an overview of JBL. →To know about GB ( Customer service, Remittance, Cash & Clearing section) practices at JBL. →To find out the problems of GB at JBL. →To provide some suggestions solving the problem. 3

METHODOLOGY OF THE STUDY

This report has been prepared on the basis of experience gained during the period of Internship. Data has been collected from primary as well as secondary sources but emphasis has been made more on primary sources.

Data sources : The data source used to prepare this report delineated as follows: a) Primary sources- i. Personal interview ii. Depth interview iii. Observation in the organization. iv. Practical desk task. v. Questionnaire b) Secondary sources- i. Annual report of JBL ii. Banks financial statement. iii. Marketing research book. iv. Periodicals. v. Bulletins. vi. Circular. vii. Monthly transaction record of the bank.

The collected data and information have been tabulated, processed, analyzed and graphically presented in order to make the study more informative, useful and purposeful 4

SCOPE OF THE STUDY

This study is based of on theoretical practical & mathematical analysis. However the scope of the study is confined within the region of Agrabad.  I have examined accounts statement of the bank.  The major source of primary data in business circular, corporate clients, individual and other customers.  Discuss and quires with the executives & officers  Going through printed material of the bank.

Limitations of the study:

Objective of the practical orientation program is to have practical exposure for the students Internship .Programs tenure was for one month only, which was somehow not sufficient. After working whole day in the office it was very much difficult to study again the theoretical aspects of banking. Other limitations are as follows:  Research within a short period of time.  The duration of our Internship program is only one month. The allocated time is not sufficient for us to gather knowledge and to make the study a complete and fruitful one.  The study also suffered from inadequacy of data provided by JAMUNA Bank Limited. 5

Chapter –02

Banking Practice In Bangladesh:

History of Banks in Bangladesh: It is very difficult to get a clear-cut origin of the word “Bank”. It is certainly said that the present Banking systems develop after different revolution in the Banking industry. Before knowing the development of Banking system in Bangladesh, we need to know the history of overall Banking system that we inherited in the development of economic system.

When did bank appear? Linguistics (the science of language) and etymology (the study of the origin words) suggest an interesting story about banking origins. Both the old French word Banque and the Italian word Banca were used centuries ago to mean the “Bench” or “Money changer Table”. This describe quite well what historians have observed concerning the first Banker, who lived more than 2000 years ago. There were money changer, situated usually at a table or in small shop in commercial district, aiding travelers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee in order to supply merchant with working capital.

The first Bankers probably used their capital to fund their activities, but it wasn’t long before idea of attracting deposits and securing temporary loans wealthy customers become a important sources of banking funding. Loans were than made to merchants, shippers and land owners at a interest rate as law as 6 percent per annum as high as 48percent a month for the riskiest ventures. Most of the early Bank of any size were Greek in origin.

The Banking industry gradually spread outward from the classical civilizations of Greece and Rome into northern and western Europe. Banking encountered religious opposition during the Middle Ages, primarily because Loans made to poor often carried very high interest rates. However as the Middle ages drew to a close and the Renaissance began in Europe, the bulk of Bank Loans and deposits involved relatively wealthy customers, which helped to reduce religious oppositions to Banking Practices. 6

The development of new overland trade routes and improvements in navigation in the 15 th. 16th and 17th centuries gradually shifted the center of world commerce from the Mediterranean region towards Europe and British Isles, where banking became a lending industry. During this period were planted the seeds of the industrial Revolution, which demanded a well developed financial Systems. In particular the adoption of mass production methods required a corresponding expansion in global trade to absorb industrial output, requiring new method for making payments and credits available. Banks that could Delivers on these needs grew rapidly, led by such institutions as the Medici Bank in Italy and the Hochstetler Bank in Germany.

When Colonies were transferred in North and South America, Old World banking practices were transferred to New World. At first the colonist dealt primarily with established banks in the countries from which they had come. As the 19th centuries began, however, state governments in the united state began chartering banking companies. Many of these were simply extensions of other commercial enterprise in which banking service were largely secondary to sale- for example, the farm equipment business. The development of large professionally managed banking firms was entered in a few leading commercial centers, especially New York. The federal government became major forces in US banking during the Civil War. The Office of the Comptroller pf the Currency (OCC) was established in 1864. Created by Congress to charter national Banks. This divided Bank regulatory System, with both the federal governments and the states playing key roles in the control and supervision of banking activity, has persisted in the United States to the present day.

All the researchers and experts agreed that the present banking system comes from the activities of the following classes; 1. Gold Smith 2. Businessman 3. Money Lenders.

As we were the colony of British our Banking history was started from the British Rules. in 1806 the East India Company was introduced different king of coins as medium of exchange. in 1700, in our sub continent, “ The Hidustan Bank” was established which was the first modern bank in this area. in 1784 the Bengal Bank was established. In 1873 there were two branches of The Bengal Bank were opened in Chittagong & Sirajganj Respectively. 7

After partition of India and Pakistan regime the entire sub continent was divided into two countries named India & Pakistan in 1947. In 1948 the state bank of Pakistan was established as a central bank of Pakistan in 1949 a strong commercial bank form named National Bank of Pakistan in 1971 there were 36 schedule bank were operate in our country. Most of the Head Quarter of those banks was situated in West Pakistan except Eastern Banking Corporation (Presently Known as Uttar Bank Ltd) and eastern Mercantile Bank Ltd (Presently Known as Pubali Bank Ltd.) After liberation we were inherited the total banking industry that was leave by the Pakistani. In 1971 there were 1090 branches of 12 banks were operating in our Bangladesh. Only 2(Two) banks owners were Bangladeshi named Eastern Mercantile Bank Ltd & Eastern Banking Corporation. In march 26, 1972, all the banks were nationalized by a president Nationalization order except foreign Banks. By this nationalization order 6(Six) nationalized bank were established. Following are picture of the Banking industry after liberation.

Sl No New Bank Original Bank 01 Sonali Bank 1. The National Bank of Pakistan 2. The Bank of Bhawalpur 3. The Premier Bank 02 Agrani Bank 1. The Habib Bank Ltd 2. The Commerce Bank Ltd. 03 Janata Bank 1. The United Bank Ltd. 2. The Union Bank Ltd 04 Rupali Bank Ltd 1. The Muslim Commercial Bank Ltd 2. The Standard Bank Ltd 3. The Australasia Bank Ltd 05 Pubali Bank The Eastern Mercantile Bank Ltd 06 Uttar Bank The Eastern Banking Corporation Ltd.

Types of Bank: We can classify banks in various ways. Classification can be done on the basis of ownership, quality of activities and operation of activities. Here we classify the bank on the basis of ownership of the banks. There are three types of commercial bank in Bangladesh these are sl Nationalized Commercial Private Commercial Bank Foreign Commercial Specialized Bank nO Bank Bank 8

Sonali Bank Ltd Pubali Bank Ltd Standard Chartered Bangladesh Krishi Bank Bank Ltd Janata Bank Ltd Uttara Bank Ltd HSBC Bangladesh Development Bank Agrani Bank Ltd AB Bank Ltd Citi Bank Na Rajshahi Krishi Unnayan Bank Rupali Bank Ltd IFIC Bank Ltd Habib Bank Ltd Grameen Bank Islami Bank Ltd State Bank of India Samabai Bank National Bank Ltd National Bank of Anser BDB Bank Pakistan The City Bank Ltd Woori Bank Ltd Kormashangthan Bank United Commercial Bank Commercial Bank of Ltd Ceylon National Credit & Bank Al Falah Ltd Commerce Bank Ltd Prime Bank Ltd ICB Islami Bank Ltd South East Bank Ltd Dhaka Bank Ltd Al Arafa Islami Bank Ltd Social Islami Bank Ltd Dutch Bangla Bank Ltd Mercantile Bank Ltd Standard Bank Ltd EXIM Bank Ltd Mutual Trust Bank Ltd Bangladesh Commerce Bank Ltd Fissecurity Islami Bank Ltd Jamuna Bank Ltd

Chapter -03

An 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.

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 and BMRE of industrial units. 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 9

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 eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has real-time centralized Online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides these traditional delivery point, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country.

The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transection hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday including goverment holidays.

CORPORATE SLOGAN :> Your Partner For Growth.

VISION:

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

MISSION :

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.

Strategies:

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 • perception towards our performance in meeting those requirements. To review and update policies, procedures and practices to enhance the ability • to extend better service to customers. 10

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

OBJECTIVES:

• 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.

Corporate Information

The Management

Managing Director Md. Motior Rahman Deputy Managing Director Md. Abul Shahjahan Senior Executive Vice President M. Shamsul Huq A.K.M. Rashiduzzaman Md. Yunus Ali Executive Vice President Mirza Elias Uddin Ahmed M. Shamsul Arefin 11

Md. Habibur Rahman Shahedul Alam Khan A.K.M. Saifuddin Ahamed Md. Abrar Hossain Khan Md. Zobaidul Islam Mahbubul Huq Choudhury Muhammad Ali Ashraf Md. Balayet Hossain Khandaker Khalidur Rahman Manzurul Ahsan Chowdhury Nur-E-Jannat Begum Senior Vice President Nasim Ali Akhand Muhammad Ali Ashraf Md. Anwar Hossain S.M. Altaf Hossain Md. Elias Ali Akanda Md. Nazmul Hossain Md. Mukhlesur Rahman Khorshed Ahmed Nayeem Md. Mofazzal Hossain Md. Ghulam Mustafa Moin Uddin Ahmed Vice President Md. Zashim Uddin Md. Belal Hossain Monsur-Uz-Zaman Khandaker Zia Hassan Ahmed Nawaz Md. Abdullah Md. Monirul Alam Chowdhury Md. Abdus Sattar Md. Shamsur Rahman Majumder Md. Mostafizur Rahman Md. Fazle Elahi Chowdhury Syed Shakir Uddin Mohd. Munir Md. Mahbub Alam Iqbal Akram Khan Md. Shahidul Islam Ashim Kumar Biswas Engr. S.M. Anisuzzaman Anwar Hakim

Managing Director: 12

Sponsor Shareholder’s

Board Of Director’s

Managing Director Executive Policy Chief Committee Committee Advisor Mr. Motior Rahman is the Managing Director of Jamuna Bank Limited. He successfully Deputycompleted Managing his Masters in accounting in the year 1971 from Dhaka University. He started his Director Company Secretary career from Pubali Bank Limited in the year 1973, after that in 1991 he joined Islami Bank Bangladesh Limited Mr. Motior Rahman joined in Prime Bank Limited in the year 1995. He joined in the Jamuna Bank Limited in September 15, 2005 as Deputy Managing Director and subsequently promoted as Managing Director.

Human Resource Information General Service Division Technology Division

Credit Division Central Account Research and Division Planning Organizational Structure of Jamuna Bank Limited (Source: Company Profile)

International Audit And Development Division Inspection and Marketing

Treasury & Money Market 13

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THE MANAGEMENT STRUCTURE OF JAMUNA BANK LIMITED: 14

Organ gram of Jamuna Bank Limited Agrabad Branch:

Manager

Sub Manager

General Banking Credit In-Charger Foreign Exchange In-Charger In-Charger

Accounts Customer Remittance Import Export care

A/C open Reception Cash

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Assignment of the executive of Agrabad branch:

1. Manager is the in charge of the Branch and control over the branch with the help of Manager Operation. 2. Manager Operation directly control all the work in the floor with the help of general banking in charge, credit in charge and foreign exchange in charge. 3. General Banking in charge control Accounts department, Customer Care department and Remittance department (Local) 4. Credit Division responsible for all kind of Credit disbursement by the branch. 5. Foreign Exchange Division responsible for all kind of transaction relating to foreign trade.

Branch & SME Network

DHAKA ZONE: Dholaikhal Branch 16

Shantinagar Branch Gulshan Branch Dhanmondi Branch Nayabazar IB Branch Konabari Branch Ashulia Branch Banani Branch Motijheel Branch Chistia Market Branch Foreign Exchange Branch Sonargaon Road Branch Baligaon Bazar Branch Narayanganj Branch Mawna Branch Aganagar Branch Dilkusha Branch Rayerbagh Branch Gazipur Chowrasta Branch Savar Branch Malibagh Branch Mirpur Branch Mohakhali Branch Moulvi Bazar Branch Uttara Branch Madaripur SME/Krishi Branch Motijheel SME Center Munshigonj SME/Krishi Branch Kazipur SME/Krishi Branch Jurain SME Service Center Islampur Branch Ring Road Branch

CHITTAGONG ZONE: Anderkilla Branch Jubilee Road IB Branch Bhatiary Branch Khatungonj Branch Kadamtoli Branch Agrabad Branch Bahaddarhat Branch Bashurhat Branch 17

Azadi Bazar Branch Feni Branch Nasirabad Branch

RAJSHAHI ZONE: Rangpur Branch Thakurgaon Branch Dinajpur Branch Sirajganj Branch Rajshahi Branch Setabgonj Branch Bogra Branch Sherpur SME/ Krishi Branch (Proposed) Mohadevpur Branch Naogaon Branch Kushtia Branch SYLHET ZONE: Beani Bazar Branch Sylhet Branch Goala Bazar Branch COMILLA ZONE: Comilla Branch Laksam Branch BARISAL ZONE: Barisal Branch KHULNA ZONE: Joshore Branch Major Income Generating Services offered by Jamuna Bqank

Corporate Banking

The motto of JBL's Corporate Banking services is to provide a personalized solutions 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 a 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 18 solution. Our 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. You can leverage on our know-how in the following sectors mainly:

• Agro processing industry • 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 Division

Personal Banking Division (PBD) introduces to the customers with a variety of products. Our PBD continuously meets the challenges of developing new products and services to match the specific requirements of customers.

Personal Banking Division (PBD) issues both VISA Debit Cards and VISA Credit Cards. VISA is the renowned Card brand in the earth. Jamuna Bank Limited is a principal member of VISA Worldwide. Remittance Cell is another successful wing of the Personal Banking Division. Our product range includes:

VISA Debit Cards - You can now avail the convenience of VISA Debit Card. It is the easiest and the most secured way of utilizing your money for 24/7 retail purchases as well as cash withdrawal. 19

VISA Credit Cards - The JBL Credit Card gives you a fast, convenient and reliable way to pay, 24 hours a day, wherever you are in the world.

VISA Classic. VISA Gold

International Credit Cards – JBL International Credit Cards (VISA) allows you flexibility and convenience when you travel internationally. The VISA International card entitles you to exclusive discounts worldwide.

VISA Dual (Gold)

JBL Remittance Cell – “Remit Fast” is the motto of JBL Remittance Cell. It provides the best & faster services to its customers and connects the world through the renowned money exchange agencies. Such as Placid Nk Corporation, Moneygram Payment System Inc., Raffles Exchange Ltd.UK, Euro Bangla Money Transfer (UK) Ltd., Moneylink,UK, Homelink Remit (UK) Ltd., Rumana Money Services. Customers can avail improved pricing on remittance.

Bank Transfer. Instant Cash. Spot Cash

To offer our customers a greater banking convenience, we have introduced many modern banking facilities and some are under developments that include:

With our large ATM network including non-branch ATM across the country you have the privilege of round the clock withdrawal and other account services at your convenience. · Customer can enjoy higher ATM withdrawal limit each day.

No fees on retail purchase and can use our Credit Cards at thousands of retail outlets around the world. · There will be no commission charge on the endorsement of foreign currency for self and spouse.

Our customer service agents are available on 365 days to offer assistance for you. Just connects to our agents and satisfy your banking needs anytime of a day or any query that you might have.

International Trade Finance

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International Trade forms the major business activity undertaken by Jamuna Bank Ltd. The Bank with its worldwide correspondent network and close relationships with key financial institutions provides an extensive trade services network to handle your transactions efficiently. Our key branches in Dhaka, Chittagong, Sylhet and Naogaon are staffed by personnel experienced in International Trade Finance. These offices are the focal point for processing import and Export transactions for both small and large corporate customers. We offer a complete range of Trade Finance services. Our professionals will work with you to develop solutions tailored to meet your requirements, through mobilizing our full range of trade services locally, and drawing on our global resources. We can offer you professional advice on all aspects of International Trade requirements, namely:

• Issuing, advising and confirming of Documentary Credits. • Pre-shipment and post-shipment finance. • Negotiation and purchase of Export Bills. • Discounting of Bills of Exchange. • Collection of Bills. Assist customers to insure all risks. • Foreign Currency Dealing etc.

List of Foreign Correspondents

To provide International Trade related services we have established Correspondent Banking relationship with 336 locations of 106 world reputed Banks in more than 100 countries.

Our main Correspondent Banks are:

Citi Bank N.A., Standard Chartered, American Express Bank, Bank of New York, Bank of Nova Scotia, Duetche Bank, Dresdner Bank AG, Habib American Bank, Habib Bank AG Zurich, Bayerische Hypo Vareins Bank, Mashreq Bank PSC, Nordea Bank AB, Royal Bank of Canada, UBS AG, Union De Banques Arabes ET, Francaises, Wachovia Bank NA, Forties Bank S.A/NV, Svenska Handlesbanken, Bank of Ceylon, Banca Toscana, ABN Amro Bank, Commonwealth Bank of Australia, Danske Bank A/S. Absa Bank Ltd., Agricultural Bank of Chaina, Banca Intesa SPA, Banca Italo Albanese, Banca Popolare Commercio E Industria SPA, Bank Austria Credittanstal AG, Bank Commonwealth, Bank Madiri (Europe), Bank of Cyprus, Bank of Bahrain and Kuwait, Bank of Jordan Ltd., Bank Sadarat Iran, Blue Nile Bank, Commercial Bank of Kuwait, Commercial Bank of Qatar Ltd., Development Bank of the Philippines, Dexia Bank SA, EON Bank Berhad, First International Merchant Bank PLC., Foreign Trade Bank of North Korea, Foreign Trade Bank of Vietnam, Hiroshima bank, HVB, Hungary RT, ICICI Bank Canada. Industrial and Commercial Bank of China, ING Bank NV, Islamic Bank of Yemen and for Finance & Investment, Korea Exchange Bank, National Commercial Bank, Shinhan Bank, State Bank of India (Canada) UFJ Bank Ltd., United Bank of India, Bank of Bhutan, Allied Bank Philippines.

Foreign Remittance

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Jamuna Bank Ltd. has a network of branches in Bangladesh and 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.

REAL ESTATE FINANCING Home ownership is a basic need and a dream of every individual. Since housing industry plays a vital role in the national economy, our bank has come forward for Real Estate financing for Individual as well as Developers. The main objective of Real Estate Financing is to promote Real Estate Developers and Individuals. 22

Scope of Real Estate Loan:

> For Construction of Residential Building [CRB]

> For Construction of Commercial Building [CCB]

> For Flat Purchase [FP]

> For Building Purchase [BP]

> For Developers [DEV]

Purpose:

> Construction / Extension / Renovation of Residential / Commercial Building.

> Purchase of Building /Flat /Office Space /Chamber /Shops.

Eligibility:

> Salaried Individuals and Professionals

> Self -Employed professionals

> Businessman

> Wage Earners or other professional serving abroad

Maximum Age Limit: 70 [Seventy] years at the end of loan tenor.

Minimum Income:

> Net Income/Take home salary will be at least Tk.40,000/-[forty thousand] per month.

Maximum Loan Size:

> For Flat Purchase Tk.75.00 (seventy five) lac

> For Building Purchase/Construction of Residential Building Tk.100.00 (one hundred) lac.

Maximum Loan Tenure: Up-to 15 (fifteen) years including 01(one) year grace period.

Maximum Loan Ratio:

> 50% of total Purchase Price for Flat / Building. 23

> 60% of total Construction cost for Residential/Commercial Building.

Requirement:

> Registered Mortgage and Original Title Deed.

> Registered Irrevocable Power of Attorney (RIPA) in favor of JBL.

> Documents stated in the sanction advice.

Credit Facilities: • 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.

• The loan portfolio of the Bank encompasses a wide range of credit programs.

• Credit is also offered to major thrust sectors, as earmarked by the govt., at a reduced interest rate to develop frontier industries.

• Credit facilities are offered to individuals including housewives, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc.

• Loan is provided to the rural people for agricultural production and other off-farm activities.

• Loan pricing system is customer friendly.

• 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.

Shop Finance Scheme

Objectives:

01. To enable the small business community to run the business smoothly 24

02. Facilitating expansion of the existing businesses 03. To improve the banking habit of self employed persons 04. To diversify bank's lending to Small & Medium Enterprises (SME) which are considered as less risky and help community developments. It may be noted down that the government is also encouraging investment in SME sector.

Categories of eligible business:

i) Grocery/departmental/whole sale store ii) Confectionary/bakery (owned by the bakers) iii) Stationary shops iv) Cloth materials & small local garment traders v) Shoe makers/shops vi) PVC & plastic product traders/small manufacturers vii) Tiles/sanitary items retailers viii) Computer/Photostat/Cyber Café. ix) Electrical & electronic items retailers x) Pharmacy xi) Gift shop/cosmetics shops xii) Restaurant/fast food joints xiii) Hardwire shops xiv) Glass/ceramic retail outlets xv) Sports kit retailers xvi) Photo studio xvii) Rod, Cement & C.I. Sheet (Tin) Shop xviii) Engineering Workshop xix) Fertilizer & Pesticide shop

Maximum Loan Amount:

1) Up to a maximum of 10.00 lac in single case or 60% of possession value (distress value to be considered) whichever is lower. However, loan size will depend on creditworthiness of the borrower and the decision of the sanctioning authority. 2) Branch Manager must verify the amount of possession money actually paid before recommending such proposal.

Tenure of the loan limit:

Minimum 01 year - Maximum 03 years from the date of disbursement of the loan.

Eligibility criteria:

The applicant must fulfill the following criteria to be eligible for loans and advances under the scheme: 1. Shop owner must run the establishment himself, having at least three years successful 25

2. Business experience 3. Valid lease deed for a minimum period of 03 years up to 05 years 4. Satisfactory conducted deposit account with JBL for minimum 03 months. 5. To deposit the daily sales proceeds in the account maintained with JBL 6. Agree to abide by credit rules & regulations of JBL 7. Furnishing net-worth of the applicant/client . 8. Clean CIB 9. The bank reserves the right to accept or reject any application without assigning any reason whatsoever. 10. The intending borrower /loanee shall apply through the letter head of the business firm or through a plain paper requesting the branch manager for sanction of loan under the Shop Finance Scheme

Security: 1. Simple deposit of valid lease deed of agreement of the shop. 2. A tripartite agreement to be signed in between leaseholder/shop owner/Bank- to the effect that the leaseholder cannot rent out or transfer the leased property without the written consent of the Bank. 3. The lease deed between the landlord and the borrower must be duly executed & the original lease deed should be kept in the Bank as part of document. 4. Lease must contain provisions enabling the landlord to forfeit the lease and enable the bank to enforce a right to sell the possession of the shop to liquidate the default debt (if any). 5. Letter of disclaimer by the landlord to facilitate the bank to liquidate the default loan (if any) 6. Equal numbers of post dated cheques covering amount of each loan installment

Insurance:

All borrowing customers' inventory i.e. Stock-in-trade will be insured against Fire, Rsd & other risks with the Bank's mortgage clause cost of which will be borne by the shop owner/client/borrower.

Repayment Schedule:

Repayment schedule should be as under:

i) In case of 01 year, 10 monthly installments for the loan limit up to Tk. 3.00 lac with 02 month grace period from the date of disbursement ii) In case of 02 year, 22 monthly installments for the loan limit up to Tk.6.00 lac with 02 month grace period from the date of disbursement iii) In case of 03 year, 34 monthly installments for the loan limit above Tk.6.00 lac with 02 month grace period from the date of disbursement

Q-Cash Round The Clock Banking

Jamuna Bank Q-Cash ATM Card enables you to withdraw cash and do a variety of banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major shopping centres, business and residential areas in major cities. The network will expand to cover the whole country within a short span of time. 26

With your Jamuna Bank Q-Cash ATM card you can:

• Cash withdrawal Round The Clock from any Q-Cash logo marked ATM booths. • POS transaction (shopping malls, restaurants, jewellaries etc) • Enjoy overdraft facilities on the card (if approved) • Utility Bill Payment facilities • Cash transaction facilities for selective branches nationwide • ATM service available in Dhaka and Chittagong Withdrawal allowed from ATM's of Jamuna Bank Ltd., AB Bank, The City Bank, Janata Bank, IFIC Bank, Mercantile Bank, Pubali Bank, Eastern Bank Ltd. respectively • And more to come Is Q-Cash

Is Q-cash Secure?

Yes, Q-Cash is fully secure. Q-Cash cardholders can only carry out transactions on Q-Cash ATMs with Personal Identification Numbers (PIN). The PIN is a unique 4-digit number that allows you to access your account. You can change your PIN anytime from ATM machine. In case you have lost your card, transactions cannot be done without the PIN.

In line with the issuance of Q-cash products JBL is going to introduce VISA card very soon.

Lease Finance:

Lease means a contractual relationship between the owner of the asset and its user for a specified period against mutually agreed upon rent. The owner is called the Lesser and the user is called the Lessee. Lease finance is one of the most convenient source of financing of assets viz machinery, equipment vehicle, etc. The user of the assets i.e. Lessee is benefited through tax advantages, conserving working capital and preserving debt capacity. Moreover, Lease is an off-balance sheet item i.e lease amount is not shown in the balance sheet of the lessee and does not affect borrowing capacity. Leasing enables the lessee to avail the services of a plant or equipment without making the investment or incurring debt obligation. The Lessee can use the asset by paying a series of periodic amounts called “lease payment” or “lease rentals” to the owner of the asset at the predetermined rates and generally in advance. The payments may be made monthly or quarterly.

Jamuna Bank Ltd., the highly capitalized private Commercial Bank in Bangladesh has introduced lease finance to facilitate funding requirement of valued customers & growth of their business houses. 27

Lease Items:

· Vehicles like luxury bus, Mini bus ,Taxi cabs cars, Pick-up, CNG three wheeler etc .

· Factory equipment.

· Medical equipment

· Machinery for Agro Based Industry

· Construction equipment

· Office equipment

· Generators, Lift & Elevators for commercial place.

· Sea or River Transport.

· Computer for IT Education Center.

SWIFT:

Jamuna Bank Limited is the member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication). SWIFT is a member 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.: JAMUBDDH

Online Banking

Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from all branches located throughout 28 the Country. Our valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at different location throughout the Country..

All the existing customers of Jamuna Bank Limited will enjoy this service by default.

Key features: • Centralized Database • Platform Independent • Real time any branch banking • Internet Banking Interface • ATM Interface • Corporate MIS facility

Delivery Channels:

• Branch Network • ATM Network • POS (Point of Sales) Network • Internet Banking Network

Contact Us:

Jamuna Bank Limited;

Head Office;

3, Dilkusha C/A, Dhaka – 1000.

Telephone: 88- 02- 9570912, 9555141, Ext- 130.

Fax: 88- 02- 9565762

Web: www.jamunabankbd.com

Chapter –04

GENERAL BANKING PRACTICES IN JAMUNA BANK LIMITED 29

General Banking Department is the most important department for a bank because any customer (Business client or Deposit Client) enters to a bank through general banking division. In our Head Office there is a General Banking Division that controlled and directed all the General Banking operation of branches. Following are the structure of General Banking Division of our Jamuna Bank Limited at branch level.

General Banking Division

CUSTOMER SERVICES ACCOUNTS ↓ 1. Reception & information 2. A/c opening 3. Cash receipt & Payments 4. Clearing 5. Remittance (Local)

1. Reception & Information: Reception & Information section is responsible for welcoming the clients and provide all necessary information to the client as at when they required. This section is also received call and transfer-respected desk as per clients needs. 2. A/c Opening: This department is assigned to provide all necessary assistance to the clients regarding deposit account opening formalities for new client and other different kind of advices for existing client when they need. It is to be noted that the all kind of Loan account will be opened by the Loan & Advance Department.

Functions of the officer’s in Account Opening Section:

1. Provide information to the clients about A/c opening formalities. 30

2. To open new account for the client. 3. To issue Cheque Book for the customers. 4. To stop Cheque Payment as per clients request. 5. To withdraw stop Cheque Payment as per clients request. 6. Provide Cheque Book Requisition to Head Office for Clients. 7. Provide A/c Statement to Client 8. Provide Balance Confirmation certificate to the client half yearly and annually. 9. Provide A/c Balance and others information to the client over phone as per client request. 10. Maintain different kind of Register of Account opening and maintain various file of opened account. 11. Maintain Cheque Book Inventory. 12. Transfer of different kind of account to other branches as per client request. 13. Receive Cheque for Clearing & Transfer.

Types of Deposit Accounts offered by Jamuna Bank Ltd to its customer;

Types of Accounts: The branch may open the following types of accounts and may receive the deposit in those accounts. i) Current Deposits ii) Savings bank deposits iii) Fixed Deposits iv) Short Term Deposits v) Different kind of Scheeme.

i) CURRENT DEPOSIT ACCOUNTS:

Current Deposit Account shall be opened with a minimum of Tk. Current Deposit 5000/= but under special circumstances it may be opened with Tk. Account 1000/= Payment of Demand Credit balance in the Current Deposit account shall be payable on demand. No Interest No interest on Current Deposit Account balances shall be paid. Realization of service Service charges shall be realized from SB/CD accounts as per charge rates and rules advised by Head Office from time to time. ii) SAVINGS BANK ACCOUNTS:

Current Deposit Account shall be opened with a minimum Opening of SB A/c: deposit of Tk. 1000/= and the account may not be retained where the balance falls below Tk. 100/= One A/c in One name Not more than one account shall be opened in one name. Application of Interest Interest on Savings Bank Accounts shall be allowed at the simple 31

rate as advised by Head Office from time to time and credited to depositors account in June & December each year. For calculation of interest the minimum balance at the credit of an account between the close of the 7th day in the beginning of the month and last day of the month should be taken into consideration. iii) FIXED DEPOSIT ACCOUNTS:

Amount and Period: Fixed Deposit Accounts shall be opened for amount multiple of Tk. 1000/= for a fixed period varying from one month to 3 years and are payable at a fixed date of maturity. Interest Rate: Interest on Fixed Deposit Accounts shall be paid at rates fixed by Head Office from time to time depending on their period of maturity. Interest shall be payable only at maturity of the deposits or as advised by Head Office from time to time. The depositors will have the option to withdraw interest accumulated every six months or may leave the interest with the principal to be compounded Separate contract: Each time Fixed Deposit Account is opened it shall be considered as a separate contract and various deposits in the name of the same depositor in the name of the members of the same family shall not be treated as one deposit. iv) SHORT TERM DEPOSITS:

Period: The deposits held in these accounts shall be payable on short notice for 7 days or 30 days. The deposits may be accepted for period and rates of interest fixed by Head Office from time to time. Interest on these accounts should be allowed at the time of withdrawals only. If an account is maintained for more than one year interest will be allowed at half-yearly rest.

KINDS OF ACCOUNTS:

Branches may open any of the following kinds of accounts:- 1) Accounts of Individuals. 2) Joint Accounts. 3) Proprietorship Firms Account. 4) Partnership Concerns Account. 5) Private Limited Companies Accounts. 6) Public Limited Companies Corporation/Autonomous Bodies Accounts. 7) Trusts Accounts. 8) Accounts of Liquidators. 9) Accounts of Societies Association & Club etc. 10) Accounts of Local Authorities. GENERAL INSTRUCTIONS AND PROUDURES FOR OPENING OF ACCOUNTS:

CURRENT DEPOSIT ACCOUNTS:

A/c opening form, The Account Opening form model transaction profile specimen Model and Signature card current account (See Appendix) shall be supplied 32

Transaction profile to the customers which shall be filled in and signed by them, in and Specimen presence of branch Manager/Officer In-charge of Deposit signature card: Department.

In case of individual accounts the account opening form and the Specimen Signature Cards shall be signed by an account holder in his individual capacity both under “Yours faithfully” and “Specimen signature.” Two copies photographs of account holders/Operator duly attested. One of which should be attached with account opening form and other with the specimen signature card. Partnership and In case of Partnership firms and Proprietary concerns it is to be signed by the Partners/Proprietors in their individual capacity Proprietary concern: under “Yours faithfully” and in their official capacity under “Specimen Signature”. In all other cases persons opening the accounts shall sign both under “Yours faithfully” and “Specimen Signature” in their official capacity. Introduction of A/c: The account shall be suitably introduced by a respectable Customer of the Bank or by local elite known to the Bank in Presence of the branch Manager/Officer In-charge Deposit Department. Introduction by staff: Introductions by staff other than officers shall not be accepted.

Introduction by SB A/c Introduction from saving account holders shall not be accepted Holders unless the Branch Manager personally knows the introducer for a Long time. Branches shall not open any A/c without introduction even if the parties open such A/c’s with cheques drawn by them on any other branch of our bank and the signature on the cheque and the account opening are similar presuming that the branch on which the cheque is drawn have obtained the introduction. Branch Managers shall use sufficient intelligence, common sense and in ascertaining the genuineness of new A/c’s and that of the introduction. Similar Account: It shall be ascertained that no similar A/c was opened earlier. A note to this effect shall be made on the account opening form if any similarity is there with the new A/c. Instructions for Clear instructions with regard to operations shall be noted on the allowing Operations account opening form and specimen signature cards specially in respect: of death or inability of any of the Joint Account holders or the person the A/c not being an individual account holder. Verification of The signature of the introducer shall be verified by the Officer In- introducers Signature: charge deposit department or Cancellation Officer in case of big branches.

The stamp “Signature verified” shall be affixed near the signature and Cancellation Officer/Deposit In-charge shall sign over it. Approval of Account The approval of Branch In-charge shall be obtained on the Opening form: account opening form.

Admittance of The signature of the account holder shall be admitted by the In- Signature Of account charge deposit department and “Signature Admitted” stamp holder: shall be affixed near the specimen signature of the account holder. Particulars of Account opening form shall be entered in the account opened and closed register in serial order. Allotment of Account The account number allotted to the new account shall be given Number: on account opening form specimen signature cards and cheque book requisition slip The customers shall be supplied with pay in slip book and requested to deposit the money at the cash counter. 33

Cheque book shall be issued only after the account opening form has been completed in all respects and initial cash deposit has been made. The cheque book series shall be noted in the cheque requisition slip and cheque issue register. Entry in Reference Particulars of account opening form shall be entered in the Book: reference book under alphabetical index. The entries in A/c opening register & reference book shall be initialed by the Officer In-charge. Send the documents The account opening form specimen signature card model transaction to Computer operator: profile and cheque book requisition slip shall be sent to the computer operator for opening the account in the computer. Title of Account: The title of account and other particulars shall be written in bold letters neatly in the computer and a printout in this respect shall be taken out and duly checked and signed by the deposit In- charge and be preserved in a separate file. Cheque Number in the The cheque book series shall be entered in the ledger (computer). computer

Savings Bank Account & Short term Deposit Account:

Similar procedures have to be followed in opening the above account except the following; a) Separate account opening form , separate account to be opened and separate closed register book to be maintain.

Fixed Deposit Account: The procedure to open Fixed Deposit Account is almost same. After completing formalities of Fixed Deposit Account Banks provide a Fixed Deposit receipt commonly known as FDR to client as a claim of customer to bank.

Special Scheme:

The procedure to open Special Scheme Account is similar to Fixed Deposit Account. Following are the different kind of Deposit Scheme Jamuna Bank offer to the client’s: 1. Monthly Saving Scheme. 2. Lakhpoti Deposit Scheme. 3. Millionaire Deposit Scheme. 4. Kotipoti Deposit Scheme. 5. Marriage Deposit Scheme. 6. Education Deposit Scheme. 7. Monthly Benefit Scheme. 34

8. Wage Earners Deposit Scheme. 9. Abason Deposit Scheme. 10. Rural Deposit Scheme. 11. Car Deposit Scheme. 12. Travel Deposit Scheme. 13. Household Durable Deposit Scheme. 14. Mudaraba Hajj Savings Scheme ( Only be opened in Islami Banking Branch.) 15. Tuition Deposit Scheme.

To open the following account some term and condition to applied by bank which is changed from time to time by banks depending on the interest rate and others rules set by the Bangladesh Bank and Government.

1. Papers to be required to open an account in Bank. Following papers are needed to open account in bank;

Issuance of Cheque Book:

Account opening section is responsible to issue cheque book to the client. Following procedure to be followed to issue a cheque book for customer in our bank. a) The Requisition slip shall be sent to the computer operator to ascertain the followings; i) The account number. ii) The average balance maintained by the customer. iii) The manner in which the account is operated on. iv) Whether cheque books previously issued have been properly consumed. v)Cheques are not frequently returned for want of funds. vi) Payment of cheques is not frequently stopped. vii) It is not a Dormant Account.

If any defect is noticed by the computer operator he shall make a remark to that effect on the requisition slip, and forward it to the cancellation officer, to decide whether a new cheque book should be issued to the customer or not.

3. Cash Receipt & Payments:

Cash Department is an important department in General Banking Division. Customer Service reputation mostly depend on Cash Service. his Department receive cash from customer to deposit their account and honor client’s cheque as at when they demand. Some times Cash officer may dishonor customers cheque if they get any discrepancies in the customers cheque. The reason for dishonoring cheque we discuss in the clearing section.

Function of Cash Officer In-Charge: a) Holds the key of cash safe. b) Opens the cash safe before commencement of business alongwith other officers holding the keys. c) Supervises the carrying of cash to the cash department. d) Delivers cash to the paying officer against receipt on a memo. e) Supervises receipt and payment of cash. f) Countersigns the credit vouchers/Pay in slips. g) Receives cash from banks/main branch/branches and acknowledges where necessary. h) Arranges to send the cash to banks/main branch/ branches. 35 i) Receives cash from the cash officers. j) Writer the cash balance book and cash position memo and signs those. k) Investigates and informs the Manager in case of excess or shortage of cash. l) Gets books and cash checked by the Manager or authorized officer. m) Supervises the custody of cash in the safe and books in the strong room. n) Checks the drawers of the cash officers before leaving the office. o) Maintains record of stamped forms.

4. Clearing Section:

Clearing section is an important section of General Banking Division. The main function of clearing section is to collect client deposited cheque through Bangladesh Bank which client deposit in their account for collection. Under the following reason a clearing cheque may be dishonor. 1. Insufficient fund. 2. Second payee cheque require confirmation on the discharge of 1st payee. 3. Effects not cleared. May be presented again. 4. Full cover not received. 5. Exceeds arrangements. 6. Payment stopped by drawer. 7. ------Payee’s endorsement irregular/illegible/required. 8. ------Payee’s endorsement irregular, required Bank’s confirmation. 9. Drawer’s signature differs/required. 10. Alterations in date/figures/words require drawer’s full signature. 11. Cheque is post dated/out of date/mutilated. 12. Amount in words & figure differs. 13. Crossed cheques must be presented through a bank. 14. Clearing stamp required/requires cancellation. 15. Cheque Crossed “Account Payee only”. 16. Addition to Bank’s discharge should be authenticated. 17. Collecting Bank’s discharge irregular/required.

Functions of Clearing in Charge:

h) Checks and signs vouchers and advices. i) Signs endorsement/discharge on the instruments. j) Checks the schedules/validation sheet. k) Checks and signs the books maintained in the department. l) Signs all the standard letters issued from the department m) Keeps the undelivered instruments in a security box which is kept overnight in the strong room. n) Supervises safe keeping of departmental books o) Ensure reversal of entries outstanding in suspense Account of clearing and transfer delivery.

5. Remittance (Local): 36

Remittance section is one of the fee earning section in the bank which operate their function under General Banking Division. Following are the function of Remittance department: - Issue and payment of Demand Draft - Issue and payment of Pay Order - Deposit the Transfer cheque in clients accounts. - Outward Bills For Collection - Inward bills for collection.

Following are the procedure to issue and pay Demand draft:

ISSUE OF DEMAND DRAFTS:

Against Cash: 1. The customer is asked to complete form which is treated as an application as well as credit voucher for account (Branch concerned). 2. Commission charges are calculated and inserted in the cage provided on the form. 3. The voucher is given to the customer to deposit the cash with the cash officer. 4. The cash officer receives the cash and delivers the voucher to remittance department against initials in his book. 5. Draft is prepared and entered in drafts issued register separate folios are allotted on the register to various branches. An index is maintained in the first few pages of the register 7. The amount of the draft is protectographed 8. The draft number is written on the voucher. 9. Draft Book and the voucher along with register are sent to the officer-In-charge for checking and signatures. He signs the draft and voucher and initials the counterfoil of the draft and the register. 10. The officer-In-charge calculates test number and put the same on the DD in red letter after his signature and send the same to the Manager/Second officer for second signature 12. The draft is crossed and delivered to him against his acknowledgment on the voucher. 13. Cost memo is issued to the customer if he so desires. 14. Vouchers and the advice are sent to the Accounts Department 15. Advice is sent to dispatch department for onward transmission to the respective branches Against Cheque: a) The cheque is sent for passing and cancellation. b) The following entries are passed: i) If the cheque includes commission charge. Dr: Party’s Account(cheque) Cr: Jamuna General Account(branch concerned) Application form is treated as voucher. Advice number must be written on the application. Cr. Income Account Commission on demand drafts/mail transfers/telegraphic transfers. ii) If the cheque does not include commission charges. Dr: Party’s Accounts (cheque) Cr: Jamuna General Account (Branch concerned) Dr. Party’s Accounts (Voucher no ----) with amount of commission. Cr. Income account commission on demand 37

drafts/mail/transfers/telegraphic transfers. c) After the cheque is passed similar procedure as explained in para 44s is adopted (except c,d,k, & m). Against a letter of a) The letter is sent to deposit departments for verification of instruction: signature. b)The following entries are passed. Dr: Party’s accounts (with amount of demand draft and commission). Cr: Jamuna General account (Branch concerned) & DD Application form is used credit voucher. Cr. Income account commission on demand drafts/mail /transfers/telegraphic transfers. c) letter is attached with the debit voucher. d) After the debit voucher is passed similar procedure as explained in para 44s adopted (except 1,2,3,4,11, & 15) Issue of duplicate a)On receipt of application from the purchaser of the draft Draft: demand regarding its loss and issue of duplicate one, the signature of the applicant is verified from the original application. b) The drawee branch is informed of the loss of draft and requested to exercise caution by letter or telegram as desired by the applicant. The telegram/telephone/telex charges if incurred are recovered from him. c) On receipt of confirmation from the drawee branch that the draft is still outstanding in their books and that caution is being exercised by them, a duplicate draft is issued to the purchaser after obtaining an indemnity bond. d) The draft is issued without altering the printed number and marking in red ink “Duplicate issued in lieu of original DD no--”. e) A note to this effect is made on the original application form and the draft issued register. f) Drawee branch is advised of issuance of the duplicate draft. g) The indemnity bonds is filed in for duplicate instruments issued file. h)“Prior permission of Head Office should be obtained before issuing duplicate DD” Cancellation of a)On receipt of application alongwith the demand draft for its Demand Draft: cancellation the signature of the applicant is verified from the original application form and the genuineness of the demand draft is examined. b) Before the draft is cancelled it is ascertained that no duplicate draft has been issued and the drawee branch has not paid the same earlier. c)The entries are passed: Dr: Other Assets A/c (DD canceled). Cr: Parties A/c bill payable account if the party does not maintain any account. d) The draft is cancelled tearing out the signatures thereon DD, control number, and a note to this effect in red ink is made in the original application form and the drafts issued register and initialed. e)The cancelled draft is attached with the debit voucher. f)The branch concerned is advised to this effect with instruction to sent /IB CA. g)On receipt of /BCA the entry in other assets A/c should be reversed.

PAYMENT OF DEMAND DRAFTS:

After receipt of a) On receipt of DD advices from drawing branches, the 38

Advice: Signatures of the issuing branch shall be verified by the responding branch and the following entries are passed: Dr: Jamuna General Account (branch concerned). (branch advice is treated as debit voucher). Cr: Demand Drafts payable. b) Particulars of the advice are entered on Drafts payable register in which separate folios are allotted to every branch, and an index is maintained in the first few pages. c) The particulars are checked and initialed by the in-charge. Record of intimation a) On receipt of information from the drawing branch about of Demand Draft: the loss of draft. Caution is noted in red ink in the remark column informed accordingly. b) On receipt of information regarding the issue of duplicate draft a note to this effect is made in the register. Records of a) On receipt of intimation from the issuing branch Cancellation of in respect of cancellation of draft, entry is reversed as Demand Draft: follows: Dr: Bills payable account- Demand draft payable. Cr: Jamuna General Account (branch concerned). b) IBCA is prepared and sent to the branch concerned. c) The entry is also reversed in the register and a note to this effect is made Payment in Cash ( In a) The date, amounts in words and figures, branches drawn Special Cases) upon and signatures on the draft is checked, draft is not crossed. b) Test number is decoded and agreed. c) Signature of the payee of the Demand Draft is verified by a constituent /respectable gentlemen acceptable to the branch/payee’s signature is attested by the issuing branch in a separate letter under sealed covers. d) Particulars of the draft are verified from the register. e) Payment date is noted in the register. f) Stamp is affixed on the face of the draft. g) Draft together with the register is sent to the officer-In- charge for cancellation and initials in the register. h) After cancellation the draft is sent to cash department for payment. i) Incase of any irregularity in the draft an advice letter is sent to obtain the confirmation of the drawer branch. Payment in a) Collecting bank’s stamp, crossing anddischarge/ clearing/Transfer/ endorsement are checked. Delivery/Cash: b) Other procedure is similar to that explained in above (a to g). Before receipt of a) Particulars of the draft are entered in drafts payable advice Payment in register and suspense A/c paid (Without advice), stamp is cash: affixed on the register against the entry. b) A letter is sent to the issuing branch to forward the relative DD advice quickly by next available mail. c) Other procedure is similar to that explained in above. On receipt of advice, Following entries are passed: i) Dr: Jamuna General Account(branch concerned). Cr: Bills payable account- Demand draft payable. Dr: Bills payable account- Demand draft payable. Cr: Suspense A/c Demand draft paid without advice. ii) Date of entry reversed is noted in the register and initial of by the In-charge.

ISSUE OF PAY ORDERS:

Against Cash: a) The customer is asked to complete form which is treated as 39

an application as well as a credit voucher for: ills Payable Account-Pay order issued. b) Commission is charged and a voucher is prepared crediting: Income Account- Commission on Pay- order & Sundry Deposit A/c VAT on banking service. c) Both the vouchers are given to the customer to deposit the cash with the cash officer. d) The cash officer receives the cash and delivers the vouchers to remittance department against initials in his book. e) Pay-order is prepared and entered in Pay order issued register. The amount of the pay order is protcetographed. f) The pay order number is written on the vouchers. g) Pay order book and the vouchers alongwith the register are sent to the officer-In-charge for checking and signatures. h) After signature officer-In-charge the pay order and the voucher are sent to Manager/Second officer for second signature. i) The pay order is crossed if the customer so desires and delivered to him against his acknowledgment on the reverse of the application form. j)The vouchers are sent to Accounts Department. Against cheque: a) The cheque is sent for passing and cancellation. b) The following entries are passed: Dr: Party’s Account (Cheque) Cr: Bills Payable Account pay order issued. Dr. Income Account Commission on pay order. Cr. Sundry Deposit A/c VAT on banking service. c) After the cheque is passed similar procedure as explained.

Against a Letter: a) The letter is sent to deposit department for verification of signatures. b)Other procedure is similar that explained in above (e,f,g,h,I, & j).

Issues of duplicate a) On receipt of application from the purchaser of the pay order: order pay regarding its loss and issue of a duplicate one, the signature of the applicant is verified from the original application. b) An Indemnity bond affixed with special adhesive stamp (As per stamp Act) is obtained from the applicant. c) The pay order is issued marked duplicate in red ink. d) A note to this effect is made on the original application form and pay order issued register. e) The indemnity bond is filed in the “Indemnity bonds for duplicate instruments issued file”. f) Prior approval should be obtained from head office before issuing of duplicate pay order. g) A letter should be obtained from the beneficiary of the pay order to the effect that they have not received the original one and they have no objection to the issuance of duplicate pay order and payment there of by the bank in lieu of the original reported to be lost. Cancellation of Pay a) On receipt of application alongwith pay order of its Order: cancellation, the signature of applicant is verified from the original application form. b)Before the pay order has been issued. The original pay 40

order must be endorsed by the beneficiary & verified the signatures by the officer. c) Following entries are passed: Dr: Bills payable account- pay order issued. Cr: Party’s Account. OR Bills payable account pay slip issued (in case party does not maintain an account). d) The pay order is cancelled by tearing of signatures thereon a note to this effects is made on the application form the register. e) The cancelled pay order is attached with the debit voucher.

OUT WARD BILLS FOR COLLECTION:

a) When instruments are received from parties. They are checked for any apparent discrepancy and are compared with the particulars in Pay-in-slips. b) The instrument are stapled & the schedule is prepared. c) The instrument are suitably discharged. d) The entry is made in outward bills for collection register and O.B.C. no. in serial order is allotted and noted on the schedule and the instrument. e) The following entries are passed on contra voucher. Dr: Outward Bills Lodged. Cr: Outward Bills for collection. f) The pay in slips are preserved in a ring file.

a) When IBCA is received from the collecting branch the contra entry to be reversed and the following entries should be passed. Dr: Jamuna General Account (branch concerned). (Branch advice is treated as debit voucher) Cr: Party’s Account. Dr: Postage/Telegram Account- Postage recovered/ Telegram charge recovered. Cr: Income Account Commission on bills. b) The date of payment is marked in the register and office copy the schedule and pay-in slip are stamped. c) The vouchers Pay in slip, schedule and the realization advice alongwith the register are sent to the in-charge for checking and signature. d) The vouchers are released and schedule is filed in the “O.B.C. paid file” and the realization advice is sent to the dispatch department.

Through Demand: When the proceeds are received through draft, Following draft, vouchers are prepared and attached with the draft and are sent to clearing department. • Cr: Party’s Account • Postage A/c (Postage recovered/Telegram charges recovered) Cr: Income A/c- commission on Bills Cr: S/D VAT on service charge Remainder: If the realization advice is not received within one week In case of cheques and tow weeks in case of documentary bills or as otherwise required, reminder on form is issued 41

INWARD BILLS FOR COLLECTION:

Collection of a) When instruments are received from our branches or other Cheques banks they are checked for any apparent Discrepancy and are compared with the particulars in the schedule. b) The instruments are stamped and the schedule is stamped. c) The instruments are suitably discharged. d) The details of the schedule and special instructions are entered in inward bills for collection register I.B.C. number in serial order is allotted and noted on the schedule and the instruments. e) The following entries are passed on contra voucher: Dr: Inward Bills Lodged(IBC) Cr: Inward Bills for collection. f) Following vouchers are prepared and attached with the instruments: i) When bills are received from our branches: Cr: Jamuna General Account(branch concerned) ii) When bills are received from other banks: Cr: Jamuna General Account(branch on which Demand draft is to be drawn to remit the proceeds) Cr: Income Account- Postage recovered. Cr: Income Account- Commission on bills (in case commission & S/D VAT in charged). g) The vouchers, schedule and instruments alongwith the register are sent to the in-charge for checking and signature. h) The instruments alongwith the relative vouchers are sent to the clearing department. i) The contra voucher is sent to Account Department. j) The schedule is filed in the “IDBC outstanding file”.

Collection of from a) Bills are received from other banks or direct intimations are parties Documentary prepared on form. Bills: b) The intimations are sent to dispatch department for onward transmission to drawees. c)In case the bills to be collected through other banks fresh schedule is prepared. d)The instruments are suitably endorsed and are sent to the bank concerned through dispatch department. e) Schedule and documents are filed in the “IDBC outstanding file”. f) At the time of retirement of the bill charges for collection and storage of parcel are recovered from the drawee and credited to “Income Account- Misc. Earnings”. Retirement: a) When the party approaches the bank alongwith the Intimation advice to retire the bill, the intimation is taken Back and is checked. b) The following vouchers are prepared: i) When the proceeds are to be remitted to our branch: Cr: Jamuna General Account (Branch concerned)The amount of the bill including our branch’s Commission, postage and interest, if any. ii) Cr: Income Account- Commission in bills. Cr: Income Account- Postage recovered. iii) When the proceeds are to be remitted to local banks Cr: Bills payable account- Pay order issued (with the amount of the bill including their charges). Cr: Income Account- Commission on bills. c) When the party retires the bills against cash the vouchers 42

are handed over to him to deposit the cash. d) If the party retires the bill against a cheque, the cheque is attached with voucher and is sent to clearing department. e) In case the proceed in respect of the bill is received from another bank through a pay order, the pay order is attached with the vouchers and is sent to clearin department.

Accounts:

Accounts Division is responsible for Keeping record of all kind of vouches passed through the entire branch. The maintain the day to day expense book in the branch. The Financial Administration Division is responsible for maintaining overall account of the whole bank. Following are the general functions of accounts department. a) Gets Cash Book, Transfer book and check ledger balanced. b) Checks and signs the books maintained and vouchers passed in the department. c) Holds in his custody stitched and sealed vouchers. d) Sends statements & Returns to Head Office and Bangladesh Bank. e) Supervises safekeeping of books and vouchers. f) Gets adjusting, closing and reversing entries. g) Attends to reconciliation statement of Banker’s and Head office account.

FUNCTIONS OF GENERAL BANKING IN-CHARGE:

General Banking In-charge should check total no of vouchers & deposit slips with supplementary sheet.

1. General Banking In-charge should check the following statement: a) Trial Balance b) Statement of Affairs c) Balance Sheet/General Ledger d) Income & Expenditure Statement (Once in a month) e) Transfer Sheet-2 sets f) Clearing Sheet-2 sets

2. He will give initial on every final report.

3. He should supply necessary report to branch incumbent and Head office.

4. He should maintain the Overdraft Password for any amount of overdraft.

5. G.B. In-charge should check the cheque those exceed fifty thousands (Viz, Date, Amount, A/c no. Customer signature, tracer no. initial of passing officer) and give initial.

43

6. Branch incumbent will supervise all the activities related to computer operation.

7. Branch incumbent should inform V.P. computer department if any problem arises in computer and give suggestion about computer to V.P. Computer for better operation.

PREVENTION OF MONEY LAUNDERING ACTIVITIES :

In general Banking Division Money laundering function is one of the most important function of a bank. To prevent Money laundering activities our Head Office is set an Anti Money laundering Division in our Head Office. Money laundering activities are carried out mostly through factitious/ Benami accounts. While opening the account name, parent’s name, profession and address are given false, even introductory references are false. Introducer’s signature is forged/improper. After opening the account following processes of money laundering are adopted by them.

a) Customer’s cash deposit is deposited in fictitious account changing the name and account number. b) Transfer of fund to another fictitious account. c) Forged remittances are encased. d) Open any other fictitious account with the introductory references of the existing fictitious account. e) Deposits counter feit/forged notes in the account. f) Sudden with drawn of heavy amount by forged cheque, ratting foreign currency by forging documents, over invoicing, under invoicing etc.

In order to prevent money laundering branches are to follow the guidance of KYC (Know Your Customer), in addition to the instructions given in relative paragraphs of this Manual.

a) Customer identification is an essential element of KYC standards. For the purposes of this Guidance Notes, a customer includes: I) The person or entity that maintains an account with the bank or those on whose behalf an account is maintained (i.e. beneficial owners). Ii) The beneficiaries of transactions conducted by professional intermediaries; and Iii) As a person or entity connected with a financial transaction who can pose a significant reputation or other risk to the bank.

b) The customer identification process applies naturally at the outset of the relationship. To ensure that records remain up-to-date and relevant there is a need for banks to undertake regular reviews of existing records. An appropriate time to do so is when a transaction of significance takes place, when customer documentation standards change substantially, or when there is a material change in the way that the account is operated. However, if a bank becomes aware at any time that it lacks sufficient information about an existing customer, it should take steps to ensure that all relevant information is obtained as quickly as possible.

c) Whenever the opening of an account or business relationship is being considered, or a one-off transaction or series of linked transactions of Tk. 5000/- or more is to be under taken, identification procedures must be followed. Identity must also be verified in all cases where money laundering is known or suspected.

Once verification of identity has been satisfactorily completed, no further evidence is needed when other transactions are subsequently undertaken, records must be maintained as set out chapter 44

VII of guidance notes on prevention of money laundering and information should be updated or reviewed as appropriate.

Chapter –05

OTHERS ASPECTS:

STRENGTH, WEAKNESS AND OPPORTUNITY AND THREATS OF GENERAL BANKING DIVISION. Strength:

 Very Good position in CAMEL Rating by Bangladesh Bank.  Very much-experienced employee.  Online Banking Services available in all branches.  ATM Card facility for the client.  Goodwill in market.  Low fee charges for the client compared with others Bank.  Well and good compensation for the employees. Weakness : 45

 Manpower is not sufficient.  Very few rural branches.  Shortage of ATM booth for cardholders.  In adequate Marketing and Promotional Activities. Opportunities :

 Opportunity to expand business.  Opportunity to attract competitors client through better services.  To open overseas branches to collect remittance from other countries. Threats :

 Possibility for Money Laundering Activities by the clients.  Heavy competitions from other private commercial banks.  Up downs in Global economy.  Government policy.  Unhealthy and illegal competition.  Unstable political situation.  Inflation.

Suggestions & Recommendation

1. Increase value chain by offering unique services to the clients. 2. To launch modern and up to date marketing policy to compete in the industry 3. Bank should provide more training facilities for the employees to upgrade their skill level. 4. Today’s and Tomorrow’s business world is more challenging. To face the challenge, bankers must have knowledge about different economic and business variables. So the bank must recruit knowledgeable personnel for the banks. 5. The bank should made advertisement on Newspaper and TV, so that every initiatives and special facilities of the bank can go at the door of the customers. 6. Bank should decrease complain of the customers on zero level. 7. The bank should increase the workforce. And division of work is must to ensure the proper and efficient functioning of the bank. 46

8. 24 hours banking facilities like credit card or ATM card should be made within short period. 9. Bank should set up available ATM machine. 10. Bank should introduce new short-term schemes like micro-credit for poor and urban people. 11. Bank should introduce new long-term credit policy. 12. The bank should set up the competitive interest rate. 13. In case of export financing, the bank should be more liberal and the interest should be reduced. 14. To visit the clients business to whom bank make finance. 15. Upgrade the software to meet the client demand instantly. 16. Motivational activities should apply for the fulfillment of deposit target.

CONCLUSION:

During my thesis period at Agrabad Branch, Chittagong, almost all the desks have been observed more or less. This thesis program, in fact, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Financial Institutions, which have gained good momentum over a short period of time, Jamuna Bank Limited (JBL) is one of them. In order to maintain his momentum, JBL has to expand his activities on the lines of contemporary financial markets. For this, he will have to develop innovative products in line with modern market scenario, introduce marketable instruments by utilizing and listing finds either already managed and run by him or establishing more funds based on actual trisections with the backing of cash flow generating from organized company’s shares, financing, Real estate, leasing etc. Financial Institutions like JBL are in their infancy as compared to other conventional institutions. Conventional institutions have reached the present status after centuries of evolution based on their innovation in meeting customers, needs. For this purpose these conventional institutions spent substantial sums on research and development. Banking movement emerged in a very competitive environment. Their survival hinges very much 47 on maintaining depositors confidence after effective support of financial institutions require that depositor’s funds be rewarded with good returns. In the evolutionary process of commercial banks, Governmental Monetary Authorities and Central Banks played a vital role in guiding, supporting and providing resources to these banks. JBL also needs the support of authorities as their movements have yet develop certain essential infrastructure to function, such as in inter bank market on interest free system. For this purpose, support of central bank of Bangladesh is inevitable. JBL needs to exert concerted efforts of undertake intensive research in the field of product designing. These essentially require employing dedicated experts who have a genuine interest free system. For this purpose support of central bank of Bangladesh is and the other commercial banks. However JBL has a good set of institutional owners, which gives it a better board of directors than many other banking companies. JBL is the company that has been successful in developing a professional job environment where each officer has substantial level of authority and responsibility. We want every success of Jamuna Bank Ltd for the development of our Bangladesh Economy.

BIBLIOGRAPHY:

Article and Documents:  Circulars of JBL  Jamuna Bank Limited Profile  Annual Report of Jamuna Bank Limited  Leaf-tests of welfare oriented investment of JBL  Article of “Letter of credit” By Dr. Toufic A Chowdhury  Informal Manual of JBL  Some workshop’s synopsis.  Export-import Monthly performance Statement.

Books :  Banking theory law and practice Sudharam & Varshney.  International Business, Ricky w Griffin. 48

Web site: • www.jamunabankbd.com • www.bdbank.com • www.finance.com • www.nbr.com

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