Analysis of activities of General Banking of Prime Bank Limited

Analysis of activities of General Banking of Prime Bank Limited.

EXECUTIVE SUMMARY

The overall objective of this report is to have in depth analysis on General Banking Activities of Prime Bank Limited. The specific efforts in pursuing the objectives of this report writing are summarized in this part. In this report the introductory part explains the origin of the report and consists of the objectives, structure, methodologies, sources, limitations of the report. In the second chapter tried to give an overview of Prime Bank Limited. In this chapter have also shown the organizational structure and hierarchy of the bank. This portion included the bank’s mission, vision, objectives and functions of several departments of the bank. The performance of the Mirpur-1 Branch since 2000 is also included. In the third chapter have shared work experience. In internship period have worked in various departments of General Banking. In this part have tried to show the experience have gained while working in those departments. In fourth chapter the objectives of the report is described in details. In this chapter functions of general banking are thoroughly described. have demonstrated the activities of the entire department under general banking. In chapter five have given recommendations and findings which have prepared simultaneously when conducted in depth interview and focus group discussion.

Chapter-01

Introduction

OBJECTIVE OF THE REPORT

Broad Objective:

The major objective of the report is to make an in depth analysis of activities of General Banking of Prime Bank Limited.

General Objective:

The general objectives of the report are

• To know about the management system of Prime Bank Limited as a private commercial bank, its formation, and its functional and financial aspects.
• To have a clear knowledge about all the division and departments of Prime Bank Limited Mirpur -1Branch.
• To achieve the practical knowledge that will be helpful for future life.
• To justify the extent of the use of marketing in General Banking
• To apply theoretical knowledge in the practical field.
• To have exposure to the functions of general banking section.
• To observe the working environment in commercial banks.
• To study existing banker customer relationship.
• To be acquainted with the procedures of several schemes of deposits.
• To improve corresponding, report writing ability.

SCOPE OF THE REPORT

This report will cover the details of Prime Bank’s practices about various activities of General Banking. Now days General Banking is very much important for fixed income people. In this report, will try to focus on the various GB schemes, its functions, its history, using business correspondence analysis of this sector as well as its role in our economy. It will also cover the GB procedures and performance of Prime Bank Ltd.

METHODOLOGY

Research Design

Exploratory research has been conducted for gathering better information that will give a better understanding on General Banking. Both primary and secondary sources of data collection procedure have been used in the report. Primary data has been collected mainly through the writer’s observation of the approval process and monitoring techniques, in depth interviews of executives, officers and employees of Prime Bank Limited.

Sources of Data Collection

To make the Report more meaningful and presentable, two sources of data and information have been used widely.

Both primary and secondary data sources were used to generate the report.

The “Primary sources” are as follows-

· Face-to-face conversation with the respective officers and staffs of Prime Bank and other banks.

· Informal conversation with the clients.

· Practical work exposures from the different desks of the departments of the Branch.

· Study of the relevant files as instructed by the officers concerned.

The “Secondary Sources” of data and information are-

· Annual reports of PBL

· The daily newspaper

· Various books articles

LIMITATIONS

Since the report is concerned with the Activities of General Banking of Prime Bank Limited. A lot of information could not obtain because the bank were not interested to disclose their information, policy, and data to maintain their secrecy. Had to depend on the websites of the respective bank for much information.

There are certain limitations regarding the studies that are summarized below:

· Deficiencies in data required for the study.

· Field practice varies with the standard practice that also created problem.

· Theoretically there are so many factors to be observed before analyzing such type of study. Those kinds of information are very confidential and it is absurd for me to check all these information within only three months.

· Branch was going through renovation process, which was hampering the working environment.

· Officers are busy with their respective works. Many of them have truly failed to manage time to have a talk with me about his work in the desk.

· Wanted work in the foreign exchange department but due to time constraint I was unable to work in that department.

DEFINITIONS & ACRONYMS

· PBL: Prime Bank Limited

· STD: Short Term Deposit

· FDR: Fixed Deposit Receipt

· CSS: Contributory Savings Scheme

· MBDS: Monthly Benefit Deposit Scheme

· DBDS: Double Benefit Deposit Scheme

· ESS: Education Savings Scheme

· CD: Current Account

· SB: Savings Account

· PO: Pay Order

· DD: Demand Draft

· TT: Telegraphic Transfer

· LC: Local Draft

· IBCA: Inter Branch Credit Advice

· IBDA: Inter branch Debit Advice

Chapter-02

An Overview of

Prime Bank Limited

INCORPORATION OF THE ORGANIZATION

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with a different outlook. For them it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Limited was created and commencement of business started on 17^th April 1995. Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank, the Central Bank of the country on April 17, 1995 through the opening of its Motijheel Branch at Adamjee Court Annex Building, Motijheel commercial area, Dhaka-1000. PBL was actually registered under the Companies Act of 1913 with its registered office at 5, Rajuk Avenue, Motijheel commercial area, Dhaka-1000 which was later shifted to Adamjee Court Annex Building, 119-120, Motijheel commercial area, Dhaka-1000.

As a fully licensed commercial bank, Prime Bank Limited has being managed by highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so does the bank adjusts itself to the changing conditions. In its 10^th year of operation in 2005, Prime Bank has made substantial headway in terms of business growth, profitability and establishing its image as one of the leading private commercial banks. Its march towards reaching greater heights in operation continues with full vigor and enthusiasm. Prime Bank has made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL Rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operations.Prime Bank Limited offers all kinds of commercial, corporate and personal banking services covering all segments of society within the framework of banking rules and regulations laid down by the Central Bank. Diversification of products and services include corporate banking, retail banking and consumer banking right from industry to agriculture, real state, software and other sectors. Prime Bank Limited is a fast growing private bank and it is already at the top slot in terms of quality service to the customers and value addition for the shareholders. In the last few years Prime Bank made satisfactory progress in all areas of business operation. The bank managed to further expand and consolidate its customer base in both of its core businesses and retail banking.

Prime Bank Limited is one of the strong capital based banks in the country with capital adequacy ratio of 10.88% as on December 31, 2008, which is well above the stipulated requirement of 8%. The authorized capital of the bank is Tk. 10000.00 million and paid up capital stood at Tk. 2844.00 million as on 31^st December 2008. On this date the reserve fund of the bank stood at Tk. 986.51 million while the equity fund was Tk.2239.8 million. The total asset of the company was Tk. 110,437 million in 2008.

Prime Bank has been very selective in locating branches so that customers are better served. The bank’s currently has a network of 70 branches all over Bangladesh and a booth located at Dhaka Club, Dhaka. The bank also plans to add a few branches to its network that will give the bank strategic advantage in terms of operation and business potential. Prime Bank’s aim is to be the leading bank in the country’s principal markets. The bank by concentrating on the activities in its area of specialization has achieved good market reputation with efficient customer service. Prime Bank consolidated its position and retained its product line and financial services aimed at various target groups. In a challenging market conditions, this bank continued to provide more innovative products and better services to retain and expand its market share. The bank is committed towards providing continuous training to its staff to keep them up to date with modern practices in their respective fields of work. This bank also tries to fulfill its share of community responsibilities. By such measures the bank intends to grow and increase shareholder’s earning per share.

COMMENCEMENT OF OPERATION

Prime Bank Ltd. started its operation on 17^th April 1995 with an authorized capital of Tk. 1000 million and paid up capital of Tk. 100 million by a group of highly successful entrepreneurs who are established in various fields of economic and business activities. The commercial and investment services of PBL range from small enterprises to big business loans to all type of customers. Besides this, the bank actively participates in socio-economic development of priority sectors like agriculture, industry, housing, self-employment, etc

VISION

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management, and profitability having strong liquidity.

MISSION

To build Prime Bank limited into an efficient. Market driven, customer focused institution with good corporate governance structure. Continuous improvement in Bank’s business policies, procedures and through integration of technology at all levels.

OBJECTIVE Prime Bank aims to continuously update and develop its product line and range of services to cater to the needs of retail and corporate customers. To achieve this goal, efforts have been directed in three main areas:

· Design and introduction of new products and services

· Shaping and developing the system to face new challenges and emerging need of Market

· Full implementation and utilization of the Bank’s excellence program which aims

to provide service to customers.

While strengthening risk management and improving asset quality is the main focus of the bank, it is also aware of its responsibility to the society. With this noble intention, Prime Bank Foundation was established in 2001, which took part in diverse charitable and voluntary programs to alleviate poverty and community welfare.

ORGANIZATIONAL STRUCTURE

Prime Bank is listed with promoter shareholders’ collectively holding a 46% stake in the bank. One of the main reasons for the bank’s good financial condition is that the bank’s promoters, who have other business interests as well, have refrained from using the bank for insider lending. This is a huge issue for Bangladeshi private banks and together with somewhat lax supervision, is the single biggest factor for the poor financial condition of most private banks. While Prime Bank has so far benefited from its promoter shareholders’ approach of maintaining an arms-length relationship between the bank and their other businesses, whether this would continue to be the case in future, particularly when the second-generation promoters become directors of the bank remains to be seen.

The bank had a rather large board (20 members in all) with representatives from all the major shareholders. Previously central bank norms prevented any one shareholder individually holding an equity stake of greater than 5% in the bank; this was the reason for the 20 directors sitting in the board. The central bank rules in this regard have undergone a slight change. Now the rules are that the individual holding has been enhanced to 10% and the size of the Board will now be restricted to 13 members, which should include at least two independent directors.

The bank’s board has a policy of rotating the Chairman’s position amongst various members; consequently the bank has a new Chairman every year. The executive management also appears a bit top-heavy (relative to the size of the bank) with one additional managing director besides the managing director, four Deputy Managing Directors, three Senior Executive Vice President, fourteen Executive Vice Presidents and many Senior Vice Presidents.

ORGANIZATIONAL STRUCTURE:

HIERARCHY OF PRIME BANK

Chairman

Board of Directors

Executive Committee

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Senior Executive Officer

Executive Officer

Principal Officer

Senior Officer

Management Trainee Officer

Junior Officer

FINANCIAL PERFORMANCE

Table 2.1: Financial performance

(Taka in million)

Source: Prime Bank Annual Report-2008

PERFORMANCE OF MIRPUR-1 BRANCH SINCE 2000

Figure-1

Interpretation– As Performance of profit in Mirpur-1 Branch has gradually increased.

Figure-2

Interpretation– Compared to 2001 deposit in 2008 has increased more than four times.

Figure-3

Interpretation- In the latter years there has been substantial growth in advance section.

Figure-4

Interpretation- Compared to earlier years there has been tremendous increase in import.

Figure – 5

Interpretation– There has been steady growth in export sector.

FUNCTIONAL STRUCTURE

General Service Division (GSD)

The functions of GSD are classified as Establishment and General Banking (GB).

(a) Establishment

The main function of GSD is to procure and supply the tangible goods to branches of PBL. Those are:

· Tangible functions of opening a branch, for example, interior decoration, making lease agreement

· Print all security papers and bank stationeries, forms, registers and distribute them to the branches

· Purchase and distribution of bank’s furniture and fixtures

· Find out the demand of equipment from the branches and divisions and arrange the purchase and delivery of them to the branches concerned

· Install and maintain different facilities in different branches.

(b) General Banking

General department performs the majority functions of a bank. It is the core department of any bank. The activities of GB of PBL are mainly divided into the following categories:

· Account opening section

· Local remittance section

· Online branch banking section

· Deposit scheme section

· Clearing section

· Collection section

· Cash section

· Accounts section

Head Office Accounts

It deals with the Head Office transactions with banks and its different branches and these are recorded under the following headings:

· Income and expenditure positioning: It maintains all the income and expenditure information

· Cash section: It handles cash expenditure for office operations and payments.

· Bills section: It deals with inland bill transactions.

· Salary and wages section: Salary and wages of head office executives are given from this account.

· Provident fund: Employee provident fund are maintained here.

Consolidation of Branch Accounts

All branches of PBL have to periodically send their income and expenditure, profit and loss accounts to head office. This division consolidates all these information and makes statements to submit to Bangladesh Bank.

Credit Division

The main functions of this division are:

· To Manage PBL’s credit portfolio

· Receive credit proposal from branches

· Appraise and approve the proposals

· Sanction letters and send them to branches

· Monitor and follow up the loans and advances provided by the bank

· Set up prices for credits and ensure their effectiveness

· Prepare various statements to submit to Bangladesh Bank

International Division

This division is responsible for monitoring and supervising the foreign exchange dealings of the bank. It performs the following functions:

· Making guidelines and frameworks for foreign dealings complying the rules of Bangladesh Bank

· Circulating instructions of Bangladesh Bank

· Maintaining correspondence with foreign banks and exchange houses with which it has exchange arrangement

· Maintaining Nostrum accounts with banks in abroad

· Fixing and sending foreign exchange rates to Authorized Dealer (AD) branches and Bangladesh Bank.

Treasury

Treasury is considered to be an important division for income generation purpose within the head office. The treasury of PBL continues to efficiently manage bank’s cash flow. It optimizes the investment of the bank’s excess liquidity. Treasury is also expected to provide quality services and products to meet the demand of the customer needs and play a major role in raising bank’s income.

Computer Division

This division operates and keeps the record of all transactions, assets, liabilities of PBL by using integrated software. Though the technology of PBL is not advanced, the computer division tries to provide the following functions:

· Supply and installation of computer as per requirement

· Design software to support accounts operation

· Train the officers and employees about the operation of different software

· Updating the software if there is any lagging in its operation

Marketing Division

There are two types of marketing division. These are:

Asset Marketing: It refers to various kinds of loan and advances. This division maintains communication with corporate clients gives incentive to take loan from PBL and approaches them to borrow from PBL in profitable projects.

Liability Marketing: This refers to marketing for collecting funds through buying of depository products from large depositors. The division communicates to the persons or organization having excess fund of deposit, informs them about the attractive features of the depository products and convince them to invest in PBL in various deposit scheme.

HR Division

The Human Resource Division performs the activities related to administration and personnel. The main functions of HRD are:

· Selection and recruitment of new personnel

· Appropriate placement of human resources

· Maintain the detail about transfer, promotion and leave of personnel

· Training and development of human resource

· Keeping employee records and personal file

· Taking disciplinary action if necessary

Credit Card Division

In 1999, PBL obtained the membership of Master Card and a separate division has been assigned to look after the credit card operation. There are four types of credit card, Local Silver Credit Card, International Silver Credit Card, Local Gold Credit Card, International Gold Credit Card.

Research and Development

This division is maintained to do the research and development work to innovate new products and services as well as to improve existing products and services.

Committees and Group Division

Prime Bank Ltd. has both democratic and consultative decision making process. The subordinates are given chance to participate in the goal and objective setting of the bank. In this regard, there are three committees functioning in the bank. These are:

Policy Committee: In this case, the committee members are drawn from the Board of Directors. The committee reviews the principles, policies, rules and gives a decision which later requires the approval of the Board.

Executive Committee: This committee consists of the members of the Board. To approve the matters beyond the delegation of the board, this committee exercises the power delegated by the Board from time to time.

Management Committee: This committee consists of the Managing Directors and Head Office Executives. They discuss about the progress and improvement on the guidelines regarding deposit, loans, gives different ideas, decision regarding various issues.

SWOT ANALYSIS

The acronym for SWOT stands for

· STRENGTH

· WEAKNESS

· OPPURTUNITY

· THREAT

The SWOT analysis comprises of the organization’s internal strength and weaknesses and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strength

· Banking Experience of 12 years provides PBL the strength of being one of the market leaders in the sector. This strength of PBL is totally unmatched by any other commercial bank in Bangladesh, as the long term success of a bank heavily depends on its reputation while dealing with every sensitive commodity like money.

· PBL received many awards during 2006. PBL is the recipient of 1^st prize under ICAB National Awards 2005.

· Credit Rating Information and Services Limited (CRISL) rated the Bank as A+ Considering its good profitability, best asset quality and diversified product lines.

· As the 6^th largest listed company at Dhaka Stock Exchange PBL has strong confidence among the investors, both individual and institution.

· PBL focus strongly on remittance business and with that aim they opened rural branches where remittance business concentrates. PBL opened Exchange House at Singapore, Prime also entered into agreement with various exchange houses at USA, UK, Middle East and South Asian countries for inward foreign remittances of the wage earners.

· To be the most efficient Bank PBL has chosen T24 of Temenos Holdings, NV Netherlands Antilles as the core banking Software (CBS) for the first time in Bangladesh.

· In Bangladesh PBL has wide range of customer base and is operating efficiently in this country.

· PBL has a bulk of qualified, experienced and dedicated human resources.

· PBL has the reputation of being the provider of good quality services to its potential customers

Weakness

· PBL has fewer branches than their competitors. Such as PBL have only 50 branches whereas Uttara Bank Limited has 198 branches and 12 regional offices.

· PBL do not provide any ATM facility to the customers. This is one of the major weaknesses of PBL.

Opportunity

· The population of Bangladesh is continuously increasing at a rate of 7.3% per annum. The country’s growing population is gradually and increasingly learning to adaptation of consumer finance. As the bulk of our population is middle class, different types of products have very large and easily pregnable market.

· The activity in the secondary financial market has direct impact on the primary financial market. Investment is a national socio economic activity. And activity in the national economy controls the bank.

· PBL is now focusing on lending to SME and Retail sector. The bank is not only providing credit but also decided to popularize the SME sector by participating in various trade shows organized in the country.

· Bangladesh have a huge consumer base for maintaining several accounts. So PBL has the opportunity to keep these customers by reducing its current fees and charges.

Threat

· In today’s economy, substantial amount is remaining idle and currently the investment in the secondary market by foreign is relatively low. These economic situations of the country indicate political threats.

· Increased competition by other banks is also another threat to PBL. . Furthermore, the new comers in private sector like Dutch Bangla Bank, EXIM Bank, BRAC Bank, Southeast Bank, Mercantile Bank, Social Investment Bank, Islami Bank are also coming up with very competitive force.

Chapter-03

Work Experience

WORK EXPERIENCE:

have started internship on 12^th July 2009 in Prime Bank Limited at Mirpur-1 Branch. was told to write a joining report by Mr. Kabirul Hassan (Manager Operation) and the letter was approved by the branch manager Mr. Tozammel Haque. After that was introduced to all the executives and officers of the branch. During the orientation session, the found that the environment in the branch was quite affable. For the first few hours was sitting unoccupied and wondering in which department will be placed. After lunch placed in the accounts department. Supervisor was Mr. Shafiqur Rahman (S.O). At first he described the different functions of Accounts Department. He also explained his different job responsibilities on daily basis. On the first day was asked to observe preserved account opening forms, sort them out according to the account number. On daily basis have to write vouchers for refreshment, office stationary, local conveyance and different other headings. Helped them to communicate with their customer for delivering ATM cards. At the end of the month have also learned how to prepare monthly budget. In every month monthly budget is given by the Head Office to all the branches. Monthly budget shows whether all the departments like Credit, Retail, Export, Import Remittance and Deposits have met the required budget. In the budget we also have to show the growth of the above sectors compared to previous year. have calculated cost of operation, cost of fund, cost of deposit and other ratios. On 25^th of the month all the executives and officers salaries are paid. Have to prepare several salary vouchers and utility vouchers. One of the tasks of the accounts department is to prepare schedule banking statement 1 & 2 at the end of the quarters and the statements have to be submitted to the Bangladesh bank. This is very time consuming task. In SBS , we have to count all the accounts under different deposits schemes, their amount and their sector number. In preparing SBS 1 you have to be careful. If there are any mistakes, Bangladesh Bank imposes fine on the respective branch. My job was to calculate total number of accounts under different deposit schemes and their amounts. This task was quite challenging for me. During the first month I have also learned how to open different deposit schemes like FDR, DBDS, MBDS and other schemes. Sometimes was asked to help the customers to complete the different deposit schemes. have also learned to prepare the encashment form of FDR and DPS. If any customers wanted to close their FDR or DPS, they have to write a letter addressing to the branch manager that they want to close their deposit schemes. In the deposit schemes section, officer in charge has to maintain a register book.

The task was to give entry of all deposit schemes in the register book. The have to also update the different deposit schemes files, arranging the files according to the number.

The also worked in clearing section. The scheduled banks clear the house drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the house. Banks for credit of the proceeds to the customers’ accounts accept house and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. Officer in charge of the clearing section gives posting to the computer. The task was to find out the cheques from similar banks. Then had to prepare a summary about the total number of cheques and their amount for each bank. have also worked in the account opening section for few days. To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers. After 1/11, Bangladesh Bank has given special instructions to all the banks that they should scrutiny all the customers before opening an account. Account opening officer should make sure that the customers are providing proper documents while opening their account. For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), photocopy of the national ID card, date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information, nominee’s signature attested by the applicant. Etc. Sometimes customers were unable to understand the account opening form. The task was to help them to understand the account opening form. The have also worked in the remittance section. For issuing a pay order, the client is to submit an application to GB in the prescribed form. This form should be properly filled up and signed. The procedure of the issuing pay order is similar to that of the Local Draft. For issuing pay order PBL charges commission to the applicants. In that department my task was to issue pay order and demand draft. In case of foreign remittance have to prepare vouchers and verify customers as mentioned in the list of foreign remittance.

Chapter-04

General Banking Activities

GENERAL BANKING ACTIVITIES OF PRIME BANK LIMITED:

At first have been placed in the General Banking Department. General Banking department performs the majority functions of a bank. It is the core department.

In fact, bank operates with the people’s money. And this process starts with the General Banking department. The activities of the General Banking Department of PBL are mainly divided into the following categories:

· Account Opening Section,

· Local Remittance Section,

· Online Branch Banking Section,

· One Stop Utility Services Section,

· Deposit Schemes Section,

· Clearing Section,

· Collection Section,

· Cash Section,

· Accounts Section

Account Opening Section:

To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers.

Types of Account:

Mirpur Branch has the following types of accounts:

· Current Account

· Savings Account

· Fixed Deposit Account

Procedure to open an Account:

(1) For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information etc.

The prospective customer should be properly introduced by the followings:

i. An existing customer of the bank.

ii. Officials of the bank not below the rank of Assistant Officer.

iii. A respectable person of the locality who is well known to the

Manager or authorized officer.

(2) Two copies of passport size photograph duly attested by the introducer.

(3) Signature of the prospective account holder in the account opening form and on the specimen signature card duly attested by the introducer.

(4) Then the concerned authority will allocate a number for the new account.

(5) The customer than deposit the “initial deposit” by filling up a deposit slips. Initial deposit to open a current account in PBL is Tk. 10000.00 and saving account is Tk. 5000.00.

After depositing the initial deposit, the account is considered to be opened. PBL maintains all of its accounts in computer. After depositing the initial deposit, PBL records it in the computer by giving new account number. Then it issues cheque book requisition slip by the customer. Then it distributes all relevant papers to respective department.

Activities & papers necessary for opening an account:

(A) Joint Account:

If the account is a joint account, then the joint account holder should submit a declaration and operational instructions of the account along with their signature. The declaration is

“Any balance to the credit of the account is and shall be owned by us as joint depositors. Any liability whatsoever incurred in respect of this account shall be joint and several.”

(B) Partnership firm:

The following documents have to be submitted for preparing an account of a partnership firm:

i) Partnership deed.

ii) (a) If the partnership firm is a registered one, then one copy of registration forms.

(b) If not, then a copy of certificate from the notary public.

(C) Limited Company:

For the opening of an account of a limited company, following documents have to be submitted:

· A copy of resolution of the company that the company decided to open an account in the Prime Bank.

· Certified true copy of the Memorandum & Articles of Association of the Company.

· Certificate of Incorporation of the company for inspection and return along with a duly certified Photocopy for Bank’s records.

· Certificate from the Registrar of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. Co. For inspection and return) along with a duly certified Photocopy for Bank’s records.

· Latest copy of balance sheet.

· Extract of Resolution of the Board/General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman/Managing Director of the company.

· List of Directors with address (a latest certified copy of Form-XII).

(D) Club/Society:

Following documents have to be obtained in case of the account of the club or society:

· Up to date list of office bearers.

· Certified copy of Resolution for opening and operation of account.

· Certified copy of Bye-Law and Regulations/Constitution.

· Copy of Government Approval (if registered).

(E) Cooperative Society:

Following documents have to be obtained in case of the account of Cooperative Society:

· Copy of Bye-Law duly certified by the Co-operative Officer.

· Up to date list of office bearers.

· Resolution of the Executive Committee as regard of the account.

· Certified copy of Certificate of Registration issued by the registrar, Co-operative societies.

(F) Non-Govt. College / School / Madrasha / Muktab:

Following documents have to be obtained in case of the account of non-govt. College / school / madrasha / muktab:

· Up to date list of Governing Body/Managing Committee.

· Copy of Resolution of the Governing Body/Managing Committee authorizing opening and operation of the account duly certified by Gazetted Officer.

(G) Trustee Board:

Following documents have to be obtained in case of the account of trustee board:

· Prior approval of the Head Office of PBL.

· Certified copy of Deed of Trust, up to date list of members of the Trustee Board and certified copy of the Resolution of Trustee Board to open and operate the account.

(H) Minor’s Account:

Following documents have to be obtained in case of the account of minor:

· Putting the word “MINOR” after the title of the account.

· Recording of the special instruction of operation of the account.

· The AOF is to be filled in and signed by either the parents or the legal guardian appointed by the court of law and not by the minor.

Local Remittance Section:

Local remittance is one of the main components of general banking. The activities of local remittance are —

· Telegraphic Transfer,

· Demand Draft issue,

· Saving Certificate Issue (Sanchaypatra issue),

· Pay order.

Telegraphic Transfer:

It is an order from the issuing branch to the drawee bank / branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by telex and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch.

Procedure of issuing TT:

Following procedures are followed while issuing of TT:

· The applicant fills up the relevant parts of the prescribed application form in triplicate, duly signed the same and gives it to the GB.

· GB will fill up the commission part for bank’s use and request the applicant to deposit necessary cash or cheque at the cash booth.

· The first copy of the application form will be treated as Debit Ticket while the second copy will b