Analysis on General Banking of Jamuna Bank Limited.

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“Analysis on General Banking of Jamuna Bank Limited.”

Chapter One


1.1 Introduction

Jamuna Bank Limited is a financial institution that operates with the objective to complete the economic and financial principles of banking area. Banking sector plays a significant role in achieving the high economic growth of the country. A bank is a financial institution whose main aim is to earn profit through exchange of money and credit instruments. So, the banking system occupies an important place and plays an important role in a nation’s economy. In recent time this sector has been changing a lot due to regulation, technological innovation, globalization etc. banking sector in Bangladesh is lagging behind in adopting these changes.

Bank is the oldest institution that is contributing toward the development of any economy It is treated as an important service industry in modern world. Now a days the function of the bank is not limited in the same geographical limit of the country. Due to globalization and free market in economy, this industry facing much competition in the country and the implementation of WTO will further increase competition. The overall performance of the bank does not only depend upon the banking industry itself but also on performance of economy where it is operating.

The Banking sector in Bangladesh is different from the banking sector in developed countries. This is one of the major service sectors in Bangladesh economy and can be divided mainly in to four categories- Nationalized Bank, local Private Bank, Specialized financial Institutions, and Foreign Banks. .

1.3 Objectives of the study

The main objective of study is to know the “general banking activities-An overview of Jamuna Bank Limited”. And the specific objectives are:

?To appraise the principal activities and evaluate performance of the Jamuna Bank Limited.

?To find out how its present strategy is working.

?To observe the working environment.

?To find out the SWOT of JBL.

?To find the potential of future growth of the bank.

?To gain an idea about the financial performance of JBL.

1.4 Scope of the study

The scope of the study on General Banking Activities.An overview of Jamuna Bank Limited. It is hardly possible to become familiarized with the total operation of the bank decently within a short period of time.

In this report it has been tried to focus on the general banking activities of the bank. The scope of the report encompasses the areas covered by the organization part has been carried out to focus on the total General Banking Operation conducting the bank, which has included in the internship part. The organization part start with the history of Jamuna Bank Limited and end with ultimate performance of the Jamuna Bank Limited.

1.5 Limitations of the study

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

? Lack of records

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

The study has the following limitations:

? One of the main limitation of the study is inadequate access to information, which has hampered the scope of the analysis required for the study.

? The time is insufficient to know all activities.

? It was very difficult to collect the information from various personnel for their job constraint.

? Because of the limitations of information, some assumption was made. So there may be some personal mistake in the report.

Chapter Two

Methodology Of Study

Primary Sources of Data

Secondary Sources of Data

Methodology of the study

It is very difficult to collect relevant data from a person other than the regular employees of the bank, Because information relating to the performance of the branch office usually is restricted to be disclosed without the permission of the head office or approval of the appropriate authority. That’s why I frequently have to visit head office, and to take help from many other sources for getting relevant information. The sources of information used are:

Primary Data are collected through:

?Observation for the total internship period.

?Conducting oral discussion with both customers and staff of the branch.

? Deskwork during my practical training.

Secondary Data collected from:

? From the organization’s Brochures/ Annual report

? Online information

?Research report regarding the bank.

Chapter Three

4.1 Overview of Jamuna Bank Limited

Jamuna Bank Ltd. Dilkusha Branch At a glance:

The with a view to developing their own banking sector, fulfill client’s demand and to survive in the tough competition of branch banking. Jamuna bank Ltd. has decided to spread their sectors and for this purpose they step to open some new branches. And as a result of their such dream and decision, Dilkusha Branch (our target branch) has come to day light and a new chapter of Jamuna Bank LTD’s banking services begin.

This branch started to serve People at the middle of the year 2002.

Name of the branch: Dilkusha Branch.

Address: 33th Dilkusha Commercial area,


Time of establishment: July 3rd, 2002.

First Branch Manager:


Executive Vice President

Present Manager:

Mr. Md. Nazmul Hossain

Senior Executive Vice- President

Number of employees: 17.

(Branch Manager-1, Asst. Manager-1, Human resource Manager-1, Accountant-2 and others.)

Number of clients at present: 3,319

Current account-757

Fixed account-180

Savings Account-2382.

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. Currently the Bank has 35 (Thirty Five) branches:

?14 in Dhaka,

?6 in Chittagong,

?2 in Gazipur,

?3 in Sylhet,

? Bogra,

?2 in Naogaon,

?1 in Munshigang,

?1 in Shirajganj,

?1 in Rajshahi and

?1 in Narayanganj (including Nine Rural Branches).

The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures.

Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank’s responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only Seven years. The bank has already ranked at top of the quality service providers & is known for its reputation.

The operation hour of the Bank is 9:00 A.M. To 5:00 P.M. from Sunday to Thursday with transaction hour from 9:00 A.M. to 3:00 P.M. The Bank remains closed at Friday and Saturday including government holidays.

4.2 Objectives of JBL

? To earn and maintain CAMEL Rating ‘Strong’.

? To establish relationship banking and improve service quality through development of Strategic Marketing Plans.

?To remain one of the best banks in Bangladesh in terms of profitability and assets quality.

? To introduce fully automated systems through integration of information technology.

?To ensure an adequate rate of return on investment.

?To keep risk position at an acceptable range (including any off balance sheet risk).

?To maintain adequate liquidity to meet maturing obligations and commitments.

?To maintain a healthy growth of business with desired image.

?To maintain adequate control systems and transparency in procedures.

?To develop and retain a quality work-force through an effective human Resources Management System.

?To ensure optimum utilization of all available resources.

?To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.

4.3 Strategies of JBL

?To raise capital up to TK.1000.00 million by 2004.

?To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund.

?To strive for customer satisfaction through quality control and delivery of timely services.

?To identify customers’ credit and other banking needs and monitor their perceptions towards our performance in meeting those requirements.

?To review and update policies, procedures and practices to enhance the ability to expand better service to customers.

?To train and develop all employees and provide them adequate resources so that customers’ needs can be responsibly addressed.

?To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employees in a timely fashion.

?To cultivate a working environment that fosters positive motivation for improved


?To increase direct contact with customers in order to cultivate a closer relation between the bank and its customers.

?To diversify portfolio both in the retail and wholesale market.

4.4 SWOT Analysis of JBL

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


?Satisfactory capital base.

?Low infection in loan


?Prospective IT infrastructure


?Limited market share.

?Exposure to large loan

?Excessive dependency on term deposits.

?Weak fund management.

?High cost of fund.

?Islamic Branch funds are not ring fenced


?Regulatory environment

?favoring private sector Development.

?Credit card.

?Small and medium enterprises


?Increased competition in the market for quality assets.

?Supply gap of foreign currency.

?Over all liquidity crises in money market

4.5 Operations, products and services of JBL

? Operations: Values of Jamuna Bank Limited:

?To be one JBL by holding and guiding the values.

?To have a strong customer focus and to build relationship based integrity; superior service and standard bank benefit.

?To strive for private and sound growth, to work as a term to serve the best interests of the organization.

?To work for continues business innovation and improvements.

?To values and respect people and make decision based on merit.

?To provide recognition and reward on performance.

?To value open and honest communication.

Branch Networks:

The number of branches of Jamuna Bank Limited is now 35. And very soon the authority is going to open few more branches at important places.

Branches are:

Mohakhali branch, Dhaka,Sonargaon road branch, Dhaka, Moulvi bazar branch. Dhaka, Goala bazar branch, Sylhet, Agrabad branch,Chittagong, Dilkusha branch. Dhaka, Beani bazar branch, Sylhet, Sylhet branch, Dhaka, Shantinagar branch. Dhaka, Gulshan branch, Dhaka, Dhanmondi branch, Dhaka, Noyabazar branch ( Islami Banking Branch), Dhaka, Mohadevpur branch, Noagoa, Noagaon baranch, naogaon, Khatungonj branch, Chittagong, Konabari branch, gazipur, Bhatiyari branch, Chittagong, Foreaign Exchange branch, Dhaka, Jubilee road branch (islami banking), Chittagong, Chistia branch, Dhaka, Bogra branch, Bogra, Baligaon branch, Munshigonj, Narayangonj branch, narayangonjMotujheel branch, Dhaka, Rajshahi branch, rajshahi, Bashurhat branch, Noakhali, Dholaikhal branch, Dhaka, Bahaddarhat branch, Chittagong, Sirajgonj branch, Sirajgonj, Banani Branch, Dhaka, Ashulia branch, Dhaka, Mawna branch, gazipur, Dinajpur branch, dinajpur, Kushtia branch, Kushtia, Kadamtali branch. Chittagong.

Maintaining procedure of accounting statement at branch level: The branch of the bank maintain their account to monthly, quarterly, half-yearly, and yearly.

?Products of JBL

?Deposit scheme:

Besides Current Deposit Account, Savings Deposit Account, Short Term Deposit Account, Fixed Deposit Account JBL provides the following customer friendly deposit schemes:

Lakhpati deposit Scheme, Kotipati Deposit Scheme, Monthly Benefit Scheme, Education Savings Scheme, Millionaire Deposit Scheme, Marriage Deposit Scheme, Double/ Triple growth deposit Scheme, Monthly savings Scheme etc

? Services Of JBL

?Corporate Banking:

The motto of JBL’s Corporate Banking services is to provide a personalized solution to our customers. The Bank distinguishes and identifies corporate customers’ need and designs tailored solutions accordingly. Export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs.

Corporate Banking business envelops a broad range of businesses and industries.

Agro processing industry (Import Substitute / Export oriented)

Textile Spinning, Dyeing, printing, Export Oriented Garments, Sweater. Food & Allied, Paper & Paper Products, Engineering, Steel Mills, Chemical and chemical products etc., Telecommunications, Information Technology, Real Estate & Construction, Wholesale trade, Transport · Hotels, Restaurants, Non Bank Financial Institutions, Loan Syndication , Project Finance · Investment Banking, Lease Finance · Hire Purchase · International Banking, Export Finance, Import Finance

?Personal Banking

Personal Banking of Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available to all a unique mixture of easy and consummate service quality.

They make every endeavor to ensure their clients’ satisfaction. Their cooperative & friendly professionals working in the branches will make your visit and enjoyable experience.

? Online Banking

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

4.6 Visions of JBL

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

4.7 Mission of JBL

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

4.8 Corporate Slogan of JBL

“Your Partner For Growth”

4.9 Growth themes of JBL

There are three themes of JBL for their growth

? Introducing card network and electronic banking.

? Expanding personalized services.

? Building strong presence in the market with reputation.

4.10 Future Trust of JBL

? Full on-line banking.

? Introducing more innovative products and services.

? Opening new branches including Islami banking branch.

? Dealing Room Service for Corporate Customers and high net worth individuals.

? Expansion of business network at home and abroad.

4.11 Business Performance

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

4.12 JBL Corporate Culture

Employees of JBL share certain common values, which help to create a JBL culture:

? The client comes first.

? Search for professional excellence.

? Openness to new ideas and new methods to encourage creativity.

? Quick decision-making.

? Flexibility and prompt response.

?A sense of professional ethics.


To achieve its organizational goals, the bank conducts its operations in accordance with the major policy guidelines laid downs by Boards of Directors, the final decision making body of the bank. The management looks after the day-to-day operation of the bank.


The management structure and the executives

owing the posts are given below:

Managing Director

Executive Vice President

Senior Vice President

Senior Assistant Vice President

Assistant Vice President

Other Executives

Following the above structure, the name of the executives owing the posts are given below:

Deputy Managing Director

Mr. K. Shamshi Tabrez

Executive Vice President

Mr. Y. N Adnan

Mr. Kazi Fariduddin Ahmed

Mr. Sk. Ruhul Amin

Mr. Mohammed Abdul Gaffer Chowdhury

Mr. Abdus Salam

Senior Vice President

Vice President

Mr. M. Hassan Ali

Mr. Shahrukh Ahmed

Mr. Md. Nazmul Hossain

Mr. A.K.M. Saifuddin Ahamed

Mr. Md. Mahbubul Hoque

Mr. Shahedul Alam Khan

Mr. Miza Elias Uddin Ahmed

Mr. Shafiqur Rahman Khan

Mr. Md. Balayet Hossain

Mr. Md. Elias Ali Akanda

Ms. Nur-E-Jannat Begum

Mr.Md. Monjurul Ahsan Chowdhury

Mr. Mahboob Alam Choudhury

Mr. Quzi Mamun-UI-Ashraf

Mr. Istiaqul Jalil Khan

Mr. Ahmed Parvez Shamsddin

Mr. Khorshed Ahmed Nayeem

Senior Assistant Vice President

Mr. Mokhlesur Rahman

Mr. Amiruddin Chowdhury

Mr. Fazlul Jalil

Mr. Md. Belal Hossain

Mr. Khandaker Zia Hassan

Mr. Md. Mofazzal Hossain

Assistant Vice President

Mr. H. A. Z. M. Mahegir

Mr. Monsuruzzaman

Mr. Zashim Uddin

Mr. Md. Zaved Tariq

Mr. Md. Shamsur Rahman Majumder

Syed Shakir Uddin Mohd. Munir

Zahurul Islam Khondoker

Mr. Md. Habibul Islam

Mr. Sk. Md. Salahuddin


JBL is well prepared to and capable of meeting the demand for a board range of banking services. It has got adequate resources, both human and physical, to provide the customers with the best possible services.


A great deal of investment for developing the physical resources base of the bank has been made. At present, there are 35 branches conveniently located branches throughout Bangladesh. The branch located at Dhaka, Chittagong, Sylhet, Naogaon and other districts.

Major features of these branches are;

§ Fully computerized accounts maintenance.

§ Well decorated and air conditioned facilities.

§ Money counting machine for making cash transactions easy and prompt.

§ A group of professional bankers to render personalized services.


Human resource development and management has been proved as one of the most critical aspects of attaining organizational effectiveness. Human Resource management (HRM) is concerned with the “people dimension in management”. Jamuna Bank Limited, since its inception, has placed equal emphasis on all the four key functions of the process of HRM-acquisition, development, motivation and retention. The various programs undertaken by the Bank to enrich the quality of human resource are mainly aimed at increasing professional knowledge and skill levels of employees through training and development, in order form a well-equipped work force for providing superlative services to the customers. The reinforcement and enhancement of motivational aspects of the employees, at the same time, have remained one of the major concerns, as we all know that “success of an organization lies in getting employees to give them little bit extra.” Jamuna Bank considers quality Human Resources as the single most valuable asset for the Bank to attain organizational goals.


Human resource objective of Jamuna Bank is to provide the organization’s requirements on human resource demand on its various sectors. HR functions in Jamuna Bank refer to policies and practices to carry out personnel aspects of the organization. These practices and policies are the followings:

· Conducting job analysis (determining nature of each employee’s job)

· Planning employee needs

· Selecting and recruiting job candidates

· Orienting and training new employees

· Managing wages and salaries

· Providing incentives and benefits

· Appraising performance

· Counseling and disciplining

· Training and developing

· Building employee commitment


There is no alternative to skilled and trained manpower in service Industry. Bearing this in mind the well educated, promising and honest workers are being appointed and trained. Southeast bank has given top priority for developing skilled manpower and introducing them with modern technologies with the purpose to develop quality customer services. Southeast bank recruit experienced bankers as well as fresh university graduates. In general, the board of directors determines the recruitment policy of the bank from time to time. The minimum entry-level qualification for any official position other than supportive management is a Bachelor degree. However, informally the management prefers a minimum master’s degree for the appointment of Probationary Officers / Management Trainee in the Executive Officer position. The recruitment for entry-level positions begins with a formal written test. After successful completion of the written test, a personal interview is conducted for the successful candidates by a panel of experts comprising of renowned bureaucrats and prominent bankers of the country.


The Bank gives utmost importance to impart training to build up quality manpower at every level and focuses on motivational devices for appropriate career progression of the employees. The Bank regularly organizes various training courses at its own Training Institute in Head Office, Bangladesh Institute of Bank Management (BIBM) and the Institute of Bankers. Apart from imparting training, officials / executives of the Bank often participate in various seminars and symposiums outside the country to acquaint them with global banking environment. (4)

In the year 2006, 53 employees were sent to BIBM for training on different Banking policies and strategies, 54 employees were also sent for foundation training at BIBM and 816 employees were trained at Bank’s training institute and different Institutions in the country for participating in workshops, symposiums etc. Besides on invitation of Foreign Banks and Organizations, 28 employees were sent in the different part of globe to attend seminars, workshop and symposiums, which made themselves aware of the latest knowledge and techniques of modern banking. (6)


Like any other financial intermediaries, JBL is no exception in performing its core functions viz. mobilization of funds and utilizing such fund for profitable purposes.


Deposit: Deposit is the mainstay of JBL sources of funds. The following include the usual types of deposits of the bank;

§ Current Deposit

§ Savings Deposit

§ Term Deposit


JBL utilizes its fund in accordance with its organizational goals and corporate strategy. Main use is for lending to industrial and trade sectors. Placement of funds in Nostro Accounts to handle foreign trade and investment in money market is also done as usual.

4.15 Significant Accounting Policies:


The financial statement of the bank have been prepared in accordance with the guidelines prescribed by the Bangladesh Bank (the Central Bank of the country), Banking Companies Act, 1999 and the Companies Act, 1994.


The financial statements have been prepared, except for cash flows statements under the accrual basis of accounting.


v Loans and advances have been stated at gross value as per requirement of the banking companies Act, 1991.

v Interest calculates on daily product basis but charges monthly/quarterly. No interest is charged on classified loans and advances from the date of filling suits against the borrowers.


Interest and discount income has been stated at gross value as per requirement of the Banking Company Act, 1991.


General provisions against classified non-performing loans (substandard, doubtful and bad) are made on the basis of informing famished by the branches according to Bangladesh Bank BRPD Circular no. 16 dates 6th December 1998 and BRPD Circular no. 09 dated 14th May 2001.


Investments in Government Treasury bills are started at face value. Investments in Bond are started at cost.


The financial period of the company covers one calendar year from 1 January to 31 December consistently.


Statement of cash flows is prepared in accordance with IAS-7 ‘Cash Flow Statement’.


In indicates cash on hand and bank deposits, which were held and available for use of the company without any restriction.


The company calculates Earning per Share (EPS) in accordance with the international Accounting Standards (ISA) 33 ‘Earning per Share’ as adopted in Bangladesh. Basic Earning per Share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.


Fixed assets are valued at cast less accumulated depreciation. Cost represents cost of acquisition or construction. Expenses of maintenance and repairs are expensed; major replacement, renewals and betterment’s are capitalized.


Income recognized on accrual basis. Interest income is only recognized if its realization is reasonably certain


Depreciation on fixed assets has been calculated adopting reducing balance method on assets at varying rates depending on the class of assets, method and rates of providing depreciation are consistently applied. The percentages of depreciation are as follows;

Vehicle 20%

Furniture and Fixtures 10%

Office equipment 15%


Assets and liabilities denominates in foreign currencies are converted into Bangladesh Taka at the rules of exchange ruling at the Balance Sheet Date and transactions in foreign

Currencies during the year are converted at the rates of exchange ruling at the transaction dates.

Chapter Four

General activities Assessment

5.1 Overview on “General activities of Jamuna Bank Limited”

Jamuna Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. JBL provides customer service to their customers. At the period of internee I found the following of JBL at Dilkusha branch.


?Account Opening

?Cheque clearing

?Local Remittance

?Cash department


?Foreign exchange

? Credit

All the employees of Dilkusha branch helped me to complete my job and I tried to describe my knowledge, which I gathered from my internship period.

5.1.1 Dispatch:

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

The staff involve with dispatch division maintain two types of mail, which is

Inward mail & Outward mail.

?Inward mail:

When staff receives any letter or documents from out side of the branch then he done following function which is arranged at sequentially:

?First put receive seal on the letter or document

?Put a serial number

?Register in the inward book with receiving date.

? Outward mail:

When it is necessary to dispatch any types of letter or document outside of the Dilkusha branch the dispatch staffs done following job, which are, arrange sequentially:

?Put serial numbers

?register on outward mail register book with date.

Outward dispatch is done in by courier service: Courier services are used when documents or letters dispatch to other branches of Jamuna Bank Ltd. It has been seen that courier services payment has made by monthly basis.

5.1.2 Account Opening:

Before discussion about account opening, first we have to know different types of target customers of Jamuna Bank Ltd.



?Join stock

?Public Sector

Trustee/clubs/ associates / and different types if institutions.

Jamuna Bank Ltd. offer different types of account for their target groups. These are as follows

?Current account

?Saving account

?Monthly savings Scheme

?Fixed Term Deposit account (FDR)

? Short term deposit (STD)

Following are broadly explaining all this type of account:

?Current Account (CD):

Current account is that type’s account where depositor can withdraw his deposited money at any time there is no restriction. Current account can be divided into four types, such as:-

?Individual current account

?Proprietary current account

?Current partnership account

?Current account for limited companies.

In the below given the requirements which are need for opening current account:

For individual current account: –

?Two copies passport size photo

?An introducer, who have an account in JBL, Dilkusha Branch.

?Ward commissioner or chairman certificate or national ID card.

?Mention sources of earnings.

For proprietor current account: –

?Trade license

?TIN number

?An introducer, who have an account in JBL, Dilkusha branch

?Seal of the applicant required

?Ward commissioner or chairman certificate or National ID card.

For current partnership account: –

?Partnership agreement

?Trade license

?An introducer, who have an account in JBL, Dilkusha branch

?Ward commissioner or chairman certificate or national ID card.

Current account for limited companies: –

?Memorandum and articles of association of the company

?Power of attorney

?Resolution of the board of directors.

Following documents which is certified by the chairman of the company:

?List of directors

?Certificate of commencement of business

?Certificate if incorporation.

?Saving account (SB):

Saving account is that account whose interest rate is higher than current account and saving account can be open by individual, joint name or club, association etc.

Requirements for opening individual saving account:

?Two copies pass port size photo

?Passport number no (if any)/ National ID card.

?TIN number ( if any)

?An introducer, who have an account in JBL, Dilkusha branch

?Name of nominee

?Two signatures on the specimen signature card.

Requirement for opening joint saving account:

?Two copies pass port size photo(both parties)

?The amount can be received by any person signature or two persons signature jointly

?An introducer who maintaining an account in the JBL, Dilkusha branch

?Ward commissioner or chairman certificate

?Three copies others laws/ rules and regulation duly certified by the chairman.

Rules for opening saving account:

Account opening money at least 500 taka.

?If deposit holder wants to close his/her account then he should pay 100 taka as cancellation charge.

?Savings account interest rate is 7.50% (for urban and rural)

?In case of saving account cheque book is 10 leaves.

?Monthly Savings Scheme (MSS)

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

?Fixed Term Deposit account (FDR)

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

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

?Short Term Deposit (STD)

Short term deposit account interest is calculated at daises and its interest rate is 7.00 %.

Documents required for opening short term deposit:

?Two copies of pass port size photo.

?TIN number

?An introducer who has an account in JBL, Dilkusha branch.

?Trade license.

?Ward commissioner or chairman certificate.

Every day, authorized officer check out which (MSS,FDR, STD) account interest has to pay. He credit voucher for interest excise duty. On every (MSS, FDR, STD) account holder has to paid 105 govt. tax, another interest. Here authorized officer issued one debit voucher and one credit voucher

?Issuing Cheque Book

There are three types of cheque book in JBL those are:

?Ten leaves cheque book used only for savings account.

?Twenty five leaves cheque book is used foe current account.

?Fifty leaves cheque book use for current account but this is provided those depositors who are loyal customer or those transactions have done randomly.

Cheque book issue to a new account holder:

New account holder has to fill up an application form which is provided by JBL. After verifying depositor signature the authorized officer put branch seal and put his/ her signature than date, name of the account5 holder, account number, cheque number and recorded in to register book When all this function is successfully completed the client gets his cheque book and put his signature on the register book.

Cheque book issue to an existing account holder:

When an existing deposit holder wants to withdraw anew cheque book then should be give a requisition slip to the bank which he get from previous cheque book then authorized officer verifying deposit holder signature. After verifying signature authorized officer put branch seal and put his/ her signature than date, name of the account5 holder, account number, cheque number and recorded in to register book then client gets his cheque book and put his signature on the register book.

In the case of lost cheque book:

It has been observed that when a cheque book has been lost by account holder, then account holder must have filled an indemnity bond which has been authorized by introducer.

In spite of these account Jamuna Bank Limited has others schemes for its customers. These schemes are below:

?Lakhpati Deposit Scheme

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

?Monthly Benefit Scheme (MBS)

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

?Education Savings Scheme

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

?Marriage Deposit Scheme

Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion.

It can be a great help to the parents if there is any scope of deposit of a modest mount as per their financial capacity, which groves very fast at high rate of interest yielding a sizeable amount on maturity.

With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an opportunity to build – up your cherished – fund by monthly deposit ofserial, amount at your affordable capacity.

?Double/Triple Growth Deposit Scheme

For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL has introduced Double/Triple Growth Deposit Scheme that offers to make double/triple money within 6(six) years and 9.5 (nine and a half) years respectively resulting a high rate of interest.

5.1.3 Cash Department

Payment through cash: Clients give their cheque with their signatures are justified with specimen signature cards. If the signature is correct, then A/C number is posted into the computer and required balance in their account.

Payment through transfer: This transfer is made through account to account, not in cash.

Cash department is the important department of any bank. All the monetary transaction in occurred in this department. The main work of the cash department is the opening of cash. The beginning balance is registered while receiving & paying different amount of cash. (Cash received and cash payment)

5.1.4 Remittance

Remittance is one of the main components of banking. The main activities of remittance section are:

?Telegraphic Transfer (TT)

?Demand Draft (DD)

?Payment of Pay order

?Pay slip Local Remittance

The offers various kinds of remittance allover the country through it branch network. Telegraphic transfer, traveler’s cheque and draft and cheque can do remittance. There are two types of remittance as are:

Inward remittance: When one bank sends these T.T., MT, T.C, or cheque to another bank within the country it will be called inward remittance.

Outward remittance: When one bank got this T.T, M.T, T.C and cheque from any bank outside the country then it will be called outward remittance. Foreign Remittance

Jamuna Bank Ltd. has a network of 19 branches in Bangladesh and 4 more branches are going to be added to network soon.

Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries.

Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time.

Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby ( where they reside/work) to send their money to their dear ones in Bangladesh.

To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank Ltd.

5.1.5 Loans and Advances

Though there was an unfavorable business environment due to political turmoil throughout the year JBL was in constant efforts to explore different areas of credit operation and could raise the credit portfolios to Tk.12796.63 million in 2006 with an increase of Tk.1784.80 million (16.21%) over that of the preceding year. The total credit as on 31.12.05 was Tk.11011.83 million. In order to ensure compliance with regulatory requirements for avoiding risk of exposure to single borrower, concentration on large loans, to bring in excellence in credit operation in relation to risk management, yield, exposure, tenure, collaterals, security valuation etc.

The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and industrial activities through an effective delivery system.

Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having productive purpose.

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

?Loan pricing system is customer friendly.

?Prime customers enjoy prime rate in lending and other services.

?Quick appreciation, appraisal, decision and disbursement are ensured.

?Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of Bangladesh) and operational procedures of the Bank.

Interest is calculated on daily product basis but charged and accounted for quarterly on accrual basis. Interest on classified loans is kept in interest suspense account as per Bangladesh Bank guidelines and such interest is not accounted for as income until realized from borrowers. Interests are not charged on bad / loss loans as per instructions of Bangladesh Bank. Advances are stated at gross value.

Here there is a table of Interest rate of provision on credit.

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

Table: Interest rate of provision on credit Sanctioning Loans and Advance

To have a clear idea about the credit management of JBL the following points are essential.

a. Credit policy of the Bank

b. Credit Sanctioning Authority of JBL and

c. Processing and Screening of credit proposal Consideration factors for loan:

When JBL bank gives loan that time they should consider some factors, such as

Safety: Safety is the most important for sanctioning loan. At the time of repayment borrower may be unable to pay the loan amount. For that reason when bank sanctioning loan they should take collateral security from the borrowers.

Security: Banker should be are in the selections of security for their loan. They should properly evaluate the value of security it should not less then or equal of loan amount.

Liquidity: When banker sanctioning any loan then they should ensure the liquidity position of JBL.

Adequate yield: Banker should select those investment which interest rate is higher then savings