Overall Banking System & HRM practice of NCC Bank Ltd

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“Overall Banking System & HRM practice of NCC Bank Ltd”.

INTRODUCTION

1.1 Origin of the Study

Banking is an essential industry. It is the most important part of a country’s economic functionality. Bank is leading the financial institution sector. A bank as the matter of fact is just like a heart of the economic structure and the capital provided by it is like the blood in it. As long as the blood is in circulation the organs will remain sound and healthy. Over the last few years the Banking world has been undergoing a lot of change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in Bangladesh. Further, due to exposure to global trends after Information explosion led by Internet, customers – both Individuals and Corporate – are now demanding better services with more products from their banks.

It has become essential for every person to have some idea on the bank and banking procedure. As our educational system predominantly text based, inclusion of practical orientation program is an exception to the norm. From practical knowledge, we will be able to know real life situations and start a career with some practical experience. In such state of affairs this internship report is an attempt of studying about the general banking activities, financial performance and analysis of NCC Bank Limited and my report topic has been selected as “Overall Banking System & HRM practice of NCC Bank Ltd”.

1.2 OBJECTIVES OF THE REPORT

The objective of the report is to familiarize myself with real market situation and compare it with bookish concept. The main objective of this report is to have an assessment about recruitment and selection process of NCC BANK Limited. In addition the study seeks to achieve the following objectives:

· To know about the recruitment and selection processof NCC BANK

· To familiarized with practical job environment.

· To give a brief overview of NCC BANK Ltd.

· Knowing lending products of the NCC Bank.

· Knowing the credit policy and credit operation model.

1.3 Scope of the Report

The report covers only human resource practices in NCC BANK limited. It focuses on overview of the bank including a comparative study about HRM and the existing banking practices. The report also investigates the perception of employees of the bank toward employee benefits and development policy. Also make discussion with Human Resource Manager and employees. Prospectus, brushers, manual is used at the time of preparing the report.

1.4 METHODOLOGY OF THE REPORT

The nature of this report is descriptive, so instead of doing any survey or using sampling method, observation method is used to complete this qualitative research. Most of the necessary information has been collected by face to face interview with the employees working in this HR department, personal observation.

1.5 SOURCES OF THE DATA

The report is based on both primary and secondary sources of information. Interviewing the managers and officers of the bank, has provided the primary sources of information. Furthermore, different publications of the bank, annual reports, and the bank website were the secondary sources of data.

a) Primary Sources:

· Guidelines and suggestions from HR manager in charge of NCC BANK limited.

· Interviewing with the bank officials, specially the In charge of human resource management of NCC BANK Ltd

· Observation from the total internship period

· Operational Process

· Discussion with officials

b) Secondary Sources:

· Annual report of NCC Bank Ltd.

· Published Booklet of NCC Bank Ltd.

· Various published documents.

· Website of the Branch

· Internet

1.6 DATA COLLECTOIN TECHNIQUE

Fort the purpose of the study two methods of techniques used:

a) Observation

b) Interview

1.7 LIMITATIONS

Observing and analyzing the broad performances of a Bank and one of its Branches are not an easy job by this short duration of time. However, the report will help me understand the whole system of recruitment and selection of employees of Banks in our environment. Some fetters at the time of preparing the report are tagged on below

· The insufficiency of information is one of the constraints of the study. Moreover Particular Division of the Bank is not interested to provide all information due to corporate obligation.

· The officer and clients are busy to provide time for interview.

· Inexperience and time limitation were the constraints of the study.

1.8 AN OVERVIEW OF ELEPHANT ROAD BRANCH

As the report on National Credit and Commerce Bank Limited, Elephant road Branch so it is essential to get some information about this branch

I appointed at Elephant Road branch, which is started on 2^nd February 2011. Although this branch has past only one, it has created positive image not only to the NCCBL but also to the customers. There are some efficient and effective bankers, workers in this branch. The management of the branch always tries to provide better service to its customer and behave well with them. As a result they have got a huge number of accounts in this branch.

Despite stiff competition among bank operating in Bangladesh, both foreign and local, Elephant Road Branch has achieved satisfactory progress in all areas of its operation and earned an impressive operating profit and shown a continuous growth in advance, deposits and foreign exchange business.

Location: It is located at Elephant Road, the prominent of Dhaka.

Address SEL SIDDIQUE PLAZA (IST FLOOR), 173 Elephant Road, Dhaka

Customers

The customer base of NCCBL Elephant Road Branch, Dhaka comprises mainly of professionals, service holders, businessman, who are involve in trading, manufacturing and to limited extend of housewives.

ORGANIZATIONAL BACKGROUND

2.1 HISTORY OF NATIONAL COMMERCE & CREDIT BANK LIMITED (NCCBL)

National Credit and Commerce Bank Ltd., popularly known as NCC Bank Ltd. Started banking operations on 17 May 1993 with an authorized capital of Tk 750 million divided into 7.5 million ordinary shares of Tk 100 each and paid up capital of Tk 195 million. The paid up capital was enhanced to Tk 390 million in 2000. NCCBL is the restructured form of the first investment company in the country, the National Credit Limited (NCL), which started business with a paid up capital of Tk 50 million and survived 8 years before its normal operations were suspended.

Now NCCBL has completed long 17 years of journey which is a total success story all the way. During its long operation, the Bank could make its presence felt in the national level by undertaking and exploring new fields of investment where no Bank or Financial Institution has invested before. 23-member board of directors, including the chairman and a vice-chairman oversees the affairs of the bank. The managing director is its chief executive. Now the bank had 58 branches. The registered head office of the bank is at the capital city of Bangladesh, Dhaka.

With expanding business in the home and abroad, NCCBL never ignored its social responsibilities as a business organization. Under the auspices of NCC Bank Foundation, it has taken various commendable steps which include holding of seminars/symposium, according grand reception to Language Veteran to Mr. Abdul Motin, sponsoring different Cultural and Sporting Events, etc. The Bank has co-sponsored the reception accorded to Prof. Dr. Md. Yunus on his receiving Nobel Prize for Peace in 2006. Through Foundation the Bank has also distributed books and other teaching materials to destitute students of remote areas of the country and also gave away stipend and crest to them. It has also extended financial assistance to a City Hospital to extend treatment to destitute patients suffering from grave deceases.

2.2 NCC BANK – AT PRESENT

Having started its operations as a commercial bank in 1993, recovering from some primary difficulties, NCC Bank has now emerged as a major player in the financial sector. Listed in both the Dhaka and Dhaka bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk.39 core, the current price levels of its shares and turnover in trading is evidence of its high rating among investors.

As per Right Share Offer Document 2010 its Authorized Capital is Tk.500.00 crore, Paid up Capital is Tk.228 crore. The bank has a strong branch network nationwide with 76 branches to effectively address the needs of its cross- segment customer base. It also has 4 SME service Centers & 10 Brokerage House Branch.

2.3 OBJECTIVE OF THE COMPANY

The main objective is to maximize profit through customer satisfaction which very much reflects idea of marketing concept. NCCBL has been ensuring maximum profit by providing best and improved customer service along with other corporate object mentioned below:

· Delivered the highest quality services and performances in order that customers choose them first.

· Maintain the high standard of corporate and business ethics. .

· To be the most efficient bank in terms of technology application.

· To achieve and sustain in the domestic leading market position in both customer and corporate banking sector.

· To contribute towards the formation of national capital

· To strive for good profit and sound growth.

· To value and respect the customers and maintain harmonious banker-customer relationship.

2.4 CORPORATE VISION OF NCC BANK

To become the Bank of choice in serving the Nation as a progressive and Socially Responsible financial institution by bringing credit & commerce together for profit and sustainable growth.

2.5 CORPORATE MISSIN OF NCC BANK

To mobilize financial resources from within and abroad to contribute to Agricultures, Industry & Socio-economic development of the country and to pay a catalytic role in the formation of capital market.

2.6 Values of NCC Bank

NCC Bank operates according to the following values:

To have a strong customer focus and build relationship based on integrity, superior service and manual benefit.

To work for business innovation and improvements.

To work as a team to serve the best interests of the group.

To be responsible, trustworthy and law-abiding in every sphere.

To value and respect the people and make decision based on the merit.

To provide recognition and reward on performance

FUNCTIONS OF NCC BANK LTD

3.1 FUNCTION OF GENERAL BANKING

General banking is the heart of all banking behavior. It is designed to provide financial services to the general people in saving their money, sometimes transaction for businessperson and ensures security of the precious wealth of clientele. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting are done here. Since bank is confined to provide the service every day, General banking is also known as retail banking. Main functions of this department are:

Account Opening

Issuance of Cheque

Receiving Cheques for clearing, Transport, and Dispatch

Issuance of Telegraph Transfer (TT), Pay Order (PO), Demand Draft (DD) etc

Opening and Maintaining of FDR, DPS and other Scheme Deposit

Fund Transfer

Closing and Transfer of Account

Maintaining the locker of the Bank

Outward clearing of IBC and OBC

Maintaining On-line Voucher

3.2 SELECTION OF GENERAL BANKING

The general banking Department does the most important and basis works of the bank. All other department is linked with this department. It also plays a vital role in deposit mobilization of the branch. For proper functioning and excellent customer service this department is divided into various sections namely as follows:

· Account opening section:

Banker and customer relationship established through opening an account. It binds the banker and the customer into a contractual relationship i.e. a deposit account & loan account. Generally account opening means to open a deposit account. When a customer want to open a bank account the banker has to maintain some common principal & procedure form and have to attach their organization documents.

Nature of accounts:

There are various kinds of account holders can open account in NCCB Ltd.

1. Individual
2. Joint
3. Proprietorship
4. Limited company (Public/Private)
5. Educational Institute, Club, Society, Association etc.

Types of Account:

i. Current

ii. Savings

iii. Short Term Deposit

iv. Fixed Deposit (FDR)/SDS/SSS

v. Money Double Program

vi. Foreign Currency Account

vii. Premium/Instant Earning Term Deposit

viii. Others

Individuals:

Individuals are adult person of 18 years of age or more who are competent to enter into the contracts.

Needed documents for individuals:

· Account opening form with nominee form duly filled up.

· Two copies of photographs of the account holder who will run the account, which are attested by the introducer.

· One copy of photograph of nominee, which is attested by the account holder(s).

· Specimen Signature Card signed by the account operator on the presence of the authorized officer of the Bank.

· Proper identity of the introducer. An introducer is a person who is accepted by the Bank.

· Special instruction (if any).

· KYC.

Joint Account:

More than one jointly or adult with minors may constitute Joint account.

Needed documents for Joint Account:

· Account opening form with nominee form duly filled up.

• Two copies of photographs of the account holders who will operate the account, which are attested by the introducer.
• One copy of photograph of nominee, which is attested by the account holders.
• Specimen Signature Card signed by the account operators on the presence of the authorized officer of the Bank.
• Proper identity of the introducer. An introducer is a person who is accepted by the Bank.

· Special instruction (if any).

• KYC.

Sole Proprietorship Concern:

A business concern owned & managed by more than one person may be registered is a partnership with one another & called individually a firm & the name under which there business is carried on is the firm’s name.

Needed documents for Sole Proprietorship:

· Account opening form with nominee form duly filled up.

· Two copies of photographs of the account holder who will run the account, which are attested by the introducer.

· Copy of valid trade license regarding its validity, address, title, ownership of the license etc.

· Specimen Signature Card signed by the account operator on the presence of the authorized officer of the Bank.

· Proper identity of the introducer. An introducer is a person who is accepted by the Bank.

· Special instruction (if any).

· KYC.

Limited Company:

5. • Public limited Company: A body corporate formed and registered under Company Act 1913, with limited members and liability having certificate of incorporation given by register, joint stock Company’s & memorandum of association & articles of association.

· Private limited Company: A body corporate formed and registered under Company Act 1913, with liability of the share holders & with no upper ceiling of shareholding having both certificate of incorporation & certificate of commencement given by register, joint stock companies. It must have memorandum of association & articles of association, autonomous bodies are organizations created by special acts of the parliament or by presidential orders.

Needed documents for Limited Companies:

· Memorandum of association

· Articles of association

· Attested photographs (Account operator)

· Letter of commencement (For Public Ltd Co.)

· Letter of incorporation

· List of Directors

· Registration: The company must be registered & certificates related to this issue is obtained from the registered office of joint stock company.

· Resolution: Specimen of resolution to be passed by a limited company for opening an account

with the Bank.

Trusts:

Trusts are created by trust deeds according with the law. Trusts are given control of an estate, usually of the decreased for the benefit of the certain persons who are called beneficiaries.

Needed documents for Limited Companies:

· Account opening form with nominee form duly filled up.

· Two copies of photographs of the account holder who will run the account, which are attested by the introducer.

· Certificate copy of Deed of Trust

· Certificate copy of Resolution of the trustee Board for opening & operation of their Account with the Bank.

· Initial Deposit

· Specimen Signature Card signed by the account operator on the presence of the authorized officer of the Bank.

· KYC.

Clubs/Association/Societies:

These are organizations created & registered or not registered under society’s registration act some of these may be registered under companies act.

Needed documents for Clubs/Association/Societies:

· Account opening form with nominee form duly filled up.

· Two copies of photographs of the account holder who will run the account, which are attested by the introducer.

· Certified copy of Byelaws & Regulation / Constitute duly certified by the Chairman I Secretary.

· Certificate copy of Resolution of Management I committee, Executive committee duly singed by the member of the Committee as per their Memorandum for opening & operation of their Account with the Bank.

· Up to date list of Officer Bearers I governing Body I Managing Committee duly certified by the Chairman/Secretary (Including Present &Permanent Address of the Office Bearers/Governing Body/Managing Committee).

· Specimen Signature Card signed by the account operator on the presence of the authorized officer of the Bank.

· KYC.

· Special Instruction (if any).

· Deposit Section:

The total deposits held by the banker are broadly divided into demand deposits and term deposits. NCCBL is maintaining the major accounts for deposit mobilization. The different types of account scheme as follows

Demand Deposit:

Under demand deposit the client can withdraw his /her money any time without any prior notice. At present NCC Bank limited offer three types of demand deposit. These are:

· Current Account (CD)

· Saving Account (SB)

· Short term Deposit (STD)

Current Account:

This scheme is of the nature of demand deposit no interest is allowed on this deposit Minimum deposit is 1000tk month. This account has chousing facilities & balances are transferable. There are different types of Current Account, These are-

· Individual Joint

· Proprietor Firm

· Partnership Firm

· Limited Company

· Club/Society/School/College

Saving Account:

Deposit on this account is self-explanatory and generally emanates from the individual. It is 90% times and 10% Demand deposit. Its rate of interest is- 7%

Minimum Deposit is Tk.1000.

Withdraw should not exceed 25% of the balance.

Short term deposit:

The characteristics of Short-term deposit and current deposit are same. Bank has given 6% interest under this scheme. But for private A/C, below Tk.2lac, no interest and for collection account, below Tk.10lac, no interest is given.

Term deposit:

In case of term deposit client can withdraw his/her money after a certain period of time. NCCBL offers various types of term deposits for its clients. Various term deposits that are provided by NCCBL is given below:

B.01.Fixed Deposit Receipt (FDR):

FDR is a term deposit and also interest bearing. A customer can have as many fixed deposit he/she wants. The maximum period of Fixed Deposit is three years but normally one is done because long-term investment is less profitable for Bank. A customer can have fixed deposit for a month, three months, six months or one year.

Minimum Deposit is Tk.50000.

The interest rate varies according to the amount and period.

FDR for 1 month, interest rate is- 8.00%

FDR for 3 months, interest rate is- 11.50%

FDR for 6 months, interest rate is- 11.75%

FDR for 1 year, interest rate is- 12.00%

Monthly interest will given against the depositors amount according to the following schedule (after deducting 10% tax and verified excess duty)

Auto renewal facility is there.

Special Saving Scheme:

NCC Bank Ltd has introduced a Special saving scheme, which was called as Pension Saving Scheme. Two types of account can be opened under this scheme.

One term is for 5 years –Interest Rate 9.50

Another term is for 10 years –Interest Rate 9.75%

· Monthly installment of Deposit will be Tk.1000/= and its multiple up to Tk.10000/- only as mentioned below to be deposited every month during the entire period of the scheme as fixed at the time of opening of the account. Account may be opened for any installment but later on the same is not changeable.

· The A/C holder can avail of loan facility (maximum 80% of the deposited principal amount) by keeping SSS A/C under line after two years from opening the A/C.

· The depositor(s) will be paid a fixed amount after expiry of the term as follows:

Special Deposit Scheme (SDS)

It is a term deposit. The interest Rate is 12%. The Executive Committee of the board of Director of the Bank in its 143^rd meeting held on 14.08.2007 has approved introduction of Special Deposit Scheme (SDS) for a period of 5(five) years for the amount of minimum Tk.1,00,000.00/- and its multiple at 12% interest. If premature encashment with in 1(one) year, no interest but before 2(two) years, will entertained prevailing SB interest Rate and after 2(two) before 3(three) years, prevailing SB+0.50% and after 3(three) before 4(four) years, prevailing SB+1.00%.

01. During the time of Deposit, depositor will get monthly dividend/interest as per following break-up:

DepositMonthly DividendAmount of

DepositMonthly DividendTk.1,00,000.00Tk.1,000.00Tk.6,00,000.00Tk.6,000.00Tk.2,00,000.00Tk.2,000.00Tk.7,00,000.00Tk.7,000.00Tk.3,00,000.00Tk.3,000.00Tk.8,00,000.00Tk.8,000.00Tk.4,00,000.00Tk.4,000.00Tk.9,00,000.00Tk.9,000.00Tk.5,00,000.00Tk.5,000.00Tk.10,00,000.00Tk.10,000.00

02. The duration of time between deposit and payment of first Dividend/interest must be minimum 30(Thirty) days.

03. Income Tax levied by Government on interest against bank deposit shall have to be borne by the depositor and the amount to be realized from the Monthly Dividend/ interest.

04. In case lending against pledge of SDS receipt, interest at the rate of 15%(12%. +3%) has to be charged against the loan outstanding. This interest rate is fixes and applicable in all cases without further consideration.

05. Monthly Dividend may be paid in cash or transferred to SB/CD-A/C of the depositor as per instruction.

Instant Earning Term Deposit (IFTD):

This type of interest can be done for 1(one) year. Interest Rate 1% below present FD rate, as interest will be paid at the time of deposit. No interest if premature encashment with in 6(Six) months and interest already paid at the time of deposit, will be deducted from principal amount but after 6 (SIX) months, interest will be paid at the time of opening account, will be deducted from principal amount.

Premium Term Deposit:

It is for 2 years. Interest Rate is 1% above the present Fixed Deposit Rate. No interest is given if premature encashment with in 1 year and after 1 year, interest will be paid at present FD rate, also no auto renewal.

Money Double Program Deposit:

It is newly introduce by the Bank. Money will be double after 6 years. No interest is given if premature encashment with in 1 year and after 1 year, interest will be paid on SB rate. It has also no auto renewal.

· Cash Section

Cash Receiving Procedures:

The work of cash receiving counter is examining deposit slips. Depositors will use the prescribed deposit slip supplied by the bank to deposit cash, check, pay order etc. In all types of deposit the teller must check the following things:

· The slip has been properly filled up

· The title of the account and its number

· The amount in figure and in words is same

· Instrument signed by the depositors

· Date of the instrument

After checking all these things the teller will accept cash, check, pay order etc. against deposit slip. The teller will place the cash in the cash drawer according to Denominations. The teller will place sign and affix “Received cash, rubber stamp” & return the customer’s copy to the customer.

Cash Payment Procedure:

In order to cash payment procedure, the paying banker has to observe the following things:

· A cheque must be looked whether it is open or cross cheque.

· The paying officer should see whether the cheque is drawn on his/her branch.

· He must check whether the Cheque is post or pre-dated.

· A teller must not pay any post-dated Cheque.

· The officer must carefully check the apparent tenor of the Cheque. If it is materially altered than the officer must not honor it.

· The officer must compare the signature of the Cheque with the signature on the specimen signature card.

· The officer must verify the regularity of the endorsement.

· The officer may allow overdue against a Cheque if prior arrangement is done with the Bank.

Passing the Cheque:

If the Cheque has no defeat and it is payable, the in charge will sign in the Cheque affixing signature verification seal along with his/her initial and will cancel the Cheque by striking it by pen. The officer will hand over the payment to the appropriate payee.

Dishonor of Cheque:

A banker can dishonor a Cheque in following situation:

· Insufficient fund

· Payment stop by drawer

· Alteration required drawer signature

· Effect not clear in Cheque

· Exceed arrangement in Cheque

· Full cover did not receive

· Payee’s endorsement irregular/illegible/required

· Drawer signature differed & required

· Cheque is post-dated/out of date

· Crossed Cheque must be presented through a bank

· Clearing stamp required cancellation

· Crossed Cheque “ Accounts Payee Only”

· Collecting bank’s discharge irregular//required

The Account Department:

This is the most confidential department of a bank. Recording all kinds of transaction of the branch, confirming their accuracy and preparing statements are the main job of this department. Now a day under computerized banking system, the jobs of accounts department become very easy. The computer then directly preparing the clear cash statements. The function of the accounts department can be divided into two ways:

a) Daily function

b) Periodical functions

Daily function:

The routine tasks of the accounts department are as follows:

· Record the daily transactions in the cashbook.

· Record the daily transactions in general & subsidiary ledger.

· Prepare the daily position of the branch comprising of deposit and cash.

· Prepare the daily statement of affairs showing all the assets and liability of the branch as per ledger and subsidiary ledger separately.

· Pay all expenditure on behalf of the branch.

· Checking whether all the vouchers are correctly passed to ensure the conformity with the ‘Activity Report’ if otherwise making it correct by calling the respectively official to rectify the vouchers.

· Records inter branch fund transfer and providing accounting treatment.

Periodical functions:

The routine Periodical tasks of the accounts department are as follows:

· Prepare the monthly salary statement of the employees.

· Publish the basic data of the branch.

· Prepare the weekly position for the branch, which is sent to the Head office to maintain Cash Reserve Requirement.

· Prepare the monthly position for the branch, which is sent to the Head office to maintain Liquidity Requirement.

· Prepare the weekly position for the branch, comprising of the breakup of sector wise deposit, credit etc.

· Prepare the weekly position for the branch, comprising of the denominator wise statement of cash in tills.

· Preparing the budget for the branch by fixing the target regarding profit and deposit so as take necessary steps to generate and mobilize deposit.

· Clearing and collection section:

For safety and security in financial transaction, people use financial instruments like DD, PO, and Check, PS etc. Commercial bank’s duty is to collect these financial instruments on behalf of their customer. This process that the banks use is known as Clearing and collection.

· Clearing section:

If a DD, PO, Check, PS of a bank comes from another bank within the range of the local clearinghouse it is sent for collection through clearinghouse to the respective branch. NCC Bank Ltd, Dhanmondi branch as a non-AD branch, sends this to the respective branch for clearing & deposits all kinds of instruments to the clearinghouse for collection on behalf of all branches.

Essential things for clearing the instruments:

There are three required for clearing the instruments.

· Crossing seal

· Endorsement seal

· Clearing seal

Outward clearing instruments handling procedures:

If any account holder, which is not drawn on Dhanmondi Branch in remittance department and expected to be in process of, deposits any cheque collection of money from another bank can never be placed for “over the counter (OTC)” payment. This cheque must be placed by the account of Dhanmondi Branch at first, then remittance department with the deposit slip.

In that deposit, the account number in which the collected money from the paying banker will be happened, the name of the account holder, the signature of the depositor, etc. should be stated clearly. The process of Outward clearing cheques started from here. The steps are as follows:

· Reception of cheque by the officer & special crossing too given on the cheque. Special crossing means the crossing in which the name of NCC Bank Ltd is stamped.

· Register entry is necessary to the Outward clearing register.

· Clearing seal to be given (LBC for cheque, the money of which will be collected from the bank exists in Dhaka city or local area & OBC for the cheques, the money of which will be collected from outside the Dhaka city or local area.

· Endorsement seal to be given at back of the cheque.

· Cheque schedule should be attached with each Outward clearinghouse along with the forwarding & sent to the clearinghouse with a view to be cleared.

Each & every slip is important and none of these can be avoided.

Inward instruments handling procedures:

There are some procedures in handling Inward instruments. Procedures are given below:

· The Cheques of other instrument drawn on Branch received from other banks through clearinghouse are checked whether they are crossed of endorsed properly.

· For payment of the instruments all formalities for cheque payment are maintained.

· In case of other branch if any instrument returned unpaid for any reason shall be given to the sending back through branch with a return memo.

· For all amount of returned cheque NCC BANK will give an IBTA to the concerned branch

· Collection section:

The collections are happening in many ways.

· Outward clearing cheque

· Inward clearing cheque

· Outward bill collection (OBC)

· Inward bill collection (IBC)

· Local bill collection (LBC)

· Outward bill collection (OBC):

When Dhanmondi Branch send any cheque drawn on other branch outside Dhaka city of NCC Bank Ltd for collection on part of its account holder, then this collection procedure will be treated as OBC. OBC happens when the cheque would be drawn on another branch of NCCBL that is outside the Dhaka city.

The total procedure is as follows:

§ Reception of the cheque from account holder.

§ Seal of the Dhanmondi branch is to be given on the cheque, special crossing and seal of NCCBL to be given in front of cheque and the end endorsement to be on back of cheque.

§ Entry is taken on Register.

§ IBCA (Inter Branch Credit Advice) is prepared and send respective branch along with respective instrument.

§ Dispatch to the department for posting favoring the particular account.

§ At last, it will be posted in the account department.

Inward bill collection (IBC):

This the reverse procedure of the LBC or OBC; that is if a cheque is sent to Dhanmondi Branch (drawn on Dhanmondi Branch but deposited to another branch of NCCBL by other party for collection then before sending to Dhanmondi Branch they mention a OBC or LBC number), Dhanmondi Branch writes another number against the OBC or LBC number known as IBC number. The process of IBC is as follows:

· Verification of the client’s account that whether there remains enough money or not.

· If enough money is available in account then following steps should be followed.

· Entry of IBC number into the IBC register book.

· Issuance of voucher

· Credit Advice sent to the collecting branch by which the transaction would be foll