Customer’s perception about the Service Quality of Jamuna Bank Limited

View With Charts And Images

“Customer’s perception about the Service Quality of Jamuna Bank Limited”


1.1 Background to the problem

Capital formation is deemed as a significant variable for economic development. An efficient and well-organized financial system contributes to the much-desired economic development through capital formation. Commercial banks constitute the most important function in the whole network of the financial system for mobilization of savings, intermediation between savers and investors and allocation of credit to productive sectors and thus play a dynamic role in the economic development of a nation. Banks offer necessary finance to set up and run the industries and provide finance to agriculture and other sector of the economy.

Throughout the last few years Bangladesh has been experiencing a rapid and significant change in the banking sector. Not only in our country, all over the world the dimension of banking has been changing rapidly mainly due to the technological innovation, globalization and deregulation. This change all over the world has significantly affected the banking industry of our country, the result of which is the change in this sector in our country. Now the condition is such that banks must compete in the market place both with local institutions as well as foreign ones. For this reason, I choose the Banking sector for successful completion of my internship program.

It is a nice opportunity for the graduates to have a taste of the real business world before starting their career. Internship, in the modern business world, helps students to demonstrate skills and competence from their supervised experience and, in addition, enables them to demonstrate maturity and acceptable professional, personal and interpersonal behavior. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to get accustomed with the real life situation through this program.

1.2 Objectives of the study

1.2.1 General objectives

The Main Objective of the study is to “Customer’s Perception about the service quality of Jamuna Bank Limited”. But this is not the main objective of this study; the following are the other Objectives of the title of the report-

1.2.2 Specific objectives

· To analyze the gap between expectation and perception of customers regarding the service provided by JBL.

· Presentation of an introduction to the organization Jamuna Bank as a whole.

· To find out existing problems of JBL.

· Identify some better strategies and suggest it for their policy implication.

· To find out how efficiently its present strategies are working.

· Find out the marketing strategy of JBL, and how they formulate their marketing strategy

1.3 Scope of the study

An infrastructure of the organization has been detailed, accompanied by a global perspective and look into the future. The scope of this report is limited to the overall description of the company, its services, and its position in the market and its marketing strategy. The scope of the study is limited to organizational setup, functions, and performances for customer satisfaction.

During three months internship work in the Jamuna Bank Ltd, worked to find out what customers think, feel and act toward the Mercantile Bank Ltd. Basically it is the measurement of customer satisfaction on the Jamuna Bank and also overall description of the bank, its services, position, marketing strategies, functions, and performances. To do these surveyed the respondents of Motijheel branch who live in Dhaka.

The study would focus on the following areas:

§ General Banking of Jamuna Bank Ltd.

§ Remittance and clearing section of JBL.

§ Credit operation of Jamuna Bank Ltd.

§ Foreign Trade of Mercantile Bank Ltd.

Each of the above areas would be critically analyzed in order to identify the service quality of the bank.

1.4 Statement of the problem

“Customer’s Perception about the service quality of Jamuna Bank Limited.”


2.1 Definition of Bank

Whoever, being an individual firm, company or corporation generally deals in the business of money and credit are called a bank. Banker means a person transacting the business of accepting for the purpose of lending or investment of deposit of money from the public repayable on demand or otherwise and withdrawable by cheques, draft or otherwise. The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Banks in all countries work as the repository of money. The general public deposit money in the bank for safe custody as well as to earn interest on it.

Entrepreneurs try to obtain money from the banks as project loan for long term investment. They also obtain working capital from the bank to run their business smoothly. Banking sector thus owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher and guide for the deposit holders and as well entrepreneurs.

The development process of a country largely depends upon its economic activities. Banking is a powerful medium among other spheres of modern socio-economic activities for bringing about socio-economic changes in a developing country like Bangladesh. Three different sectors like Agricultural, Commerce and Industry provide the bulk of a country’s wealth. The nourishment of these three is only possible through an adequate banking facility. The banking service facilitates these three to be integrated in a concerted way. For a rapid economic growth a fully developed economic system can provide the necessary boost. The whole economy of a country linked up with its banking system.


With the passage of time the functions of a bank, lending is far by the most important. They provide both long–term and short-term credit. The customers come from all walks of life, from a small business of a multi-national corporation having its business activities all around of the world. The banks have to satisfy the requirements of different customers belonging to different social groups.

Since liberation, Bangladesh passed through fragile phases of development in the Banking sector. Some banks were nationalized in the post liberation period to save the institutions and the interest of the depositors. Those handing the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. With the assertion of the role of the Central Bank, Bangladesh Bank started adopting measures for putting banking institution on right track. Yet the performance of public sector management of banks left some negative effects in the money market in particular and the economy in general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture among other effects appeared on the scene.

The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private bank was designed to create competition among the banks and competition in the form of efficiency within and the productivity in enterprises funded by banks. Unfortunately, for the people at large banking sector is yet to obtain the credit for efficiency, credibility and growth.

The clever, among the user of banking services, have influenced the management of banks, for obtaining short term and long term loans. They sometimes showed inflated equity to get money for investment in business and industry. Few diverted their loan money to purposes different from the loan proposal, and invested in non- profitable units have failed to repay their loans to the banks. For this rel1son new entrepreneurs are not getting capital while defaulting entrepreneurs have started obtaining either relief in the form of rescheduling of the repayment program or additional invest able money for diversified units.

Banks are the custodians of the society’s economic resources and if they are socialized, the socialistic government can acquire with them a tremendous power of intervention in every type of business enterprise, both large and small and wide spread power of control and planning over the entire economy. In our country where about 80% of the population lives below the poverty line, this poverty line can be declined by the success of banks. So bank plays an active role in the economic development, as a result different types of banks have come into existence to suit the specific requirements.

2.2 Global Economy: an Overview

Global economic growth in the year under review has been seen surpassing projections though there were some factors anticipated to hinder growth. As a matter of fact, world economy forged ahead modestly blessed by favorable financial market and flexible but appropriate macroeconomic policies pursued by most of the economies. Real GDP recorded 6.70 percent growth in FY 2006 compared to 6.00 percent in the preceding year. US GDP growth accelerated at a marginal point in the year under review as compared to that of the preceding year caused by softening of consumer demand and fluctuation of oil price. The Global Economic growth experienced decline in the year 2000 and 2001. In the beginning of the year 2002 the world economy showed the sign of recovery. The world economic growth stood at 2.8% in 2002 compared to 2.5% of 2001 and 4.7% in 2000. In the 3rd quarter of 2002 the growth of key indicators of world economy became stagnant. Some big corporations of the USA & Europe went for liquidation at the same time. Threat of possible war in Iraq caused a rise in oil price, which collapsed the confidence of consumers and business society. The growth in the industrialized nations further declined in 2002.

2.3 Domestic economy

A credible record of sustained growth within a stable macro-economic framework has been established by Bangladesh. Her achievements in macro economic management and social developments have been laudable as compared to those in many Asian countries. Bangladesh is now a role model for socio-economic development including disaster management. The performance of her microfinance sector has been able to surpass many records in financial arena. The outstanding performance of Grameen Microfinance was acclaimed hugely by the world in recognition of which Prof. Dr. Muhammad Yunus and his Grameen Bank earned the most prestigious Nobel Prize in peace in 2006. Foreign direct investment is getting momentum with increased inflows in recent years. Total FDI inflows were US$ 845 million, a record increase in 2005.

In the recent past, Bangladesh has been growing at steady rate with her economy. Despite rise in oil price and the end of quota restriction overall economic activities of the country rebounded during FY 2005-06. GDP growth was estimated to rise by 6.7 percent in FY 2005-06 as against 5.9 percent in FY 2004-05. Per capita income stood at US $456 in FY 2005-06 which was Tk.441 in FY 2004-05. The proportion of domestic resource to the country’s ADP has been estimated to rise by 2.5% in FY 2005-06 over 2004-05. In the revised budget revenue income of the Government was estimated to be Tk. 44,868 crore during FY 2005-06 as against Tk. 39200 crore in the previous year showing an increase of Tk. 5,668 crore (14.46%). The revenue expenditure was estimated at Tk. 34,805 crore in FY 2005-06 being 4.44% higher than that of the previous year.

Finance adviser AB Mirza Azizul Islam has proposed a budget of Tk. 99,962 crore, with Tk. 30,580 crore deficits in the FY 2008-09. And this deficit budget translate into an 86% increase in bank borrowing, which runs the risks of drying out credit for the private sector which the adviser expects to increase to 22.6%. The budget of 2008-09 is 26% bigger than that of 2007-08 FY budget. The Government has pushed up revenue target to Tk 69,382 crore, which is 21 percent higher than the target in the original budget of Fy 2007-08. For ADP in FY 2008-09, the Government has allocated Tk. 25,600 crore against Tk.26, 500 crore in FY 2007-08.

2.4 Financial Market Scenario of Bangladesh in GDP

Year Investment in Percentage
2003-04 24.02%
2004-05 24.53%
2005-06 24.65%
2006-07 24.33%
2007-08 24.20%

Table 01: Total Investment in GDP

Figure 01: Total Investment in GDP

Interpretation: From this graph we can find out that total investment in GDP was increase in the Financial Year 2004-05 and 2005-06 then the FY 2003-04. But in 2006-07, the investment is decrease and it is more decrease in 2007-08 then the previous year. So the investment situation in GDP of Bangladesh is not good then the previous year.

2.5 A brief description about Bangladesh Bank

Bangladesh Bank, the central bank of the country, was established as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The general superintendence and direction of affairs and business of the Bank are entrusted to a nine member Board of Directors which consists of the Governor as chairman, a Deputy Governor, three senior government officials and four persons having experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture – all nominated by the government. The board, which is the highest policy making body, meets at least six times a year and at least once every quarter under the chairmanship of the Governor. The Governor, appointed by the government as the chief executive officer, directs and controls all the affairs of the Bank on behalf of the Board.


a) To regulate the issue of the currency and the keeping of reserves;

b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;

c) To preserve the par value of the Bangladesh Taka;

d) To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the country’s productive resources for the national interest

2.5.2 Vision

The Bangladesh Bank (BB), through ensuring the quality of services and the competence of its staff, shall operate as a modern, dynamic, effective, and forward-looking central bank to manage the country’s monetary and financial system with a view to stabilizing the internal and external value of Bangladesh Taka conducive to rapid growth and development of the economy.


To uphold the vision and in pursuant with the Bangladesh Bank Order of 1972, Bangladesh Bank’s mission is to promote and maintain macroeconomic and price stability through:

To fulfill its mission, BB would undertake activities related to developing the national financial system and management of monetary, foreign exchange, and credit policies. The Bangladesh Bank’s core mission strategies cover both monetary policy and financial sector developments.

2.5.4 Exchange Rate

As on 31st July, 2008
Currency Buying Selling
USD 68.52 68.52
GBP 135.80 135.83
EUR 106.73 106.74

Table 02: Exchange Rate for Buying & Selling

2.5.5 Monetary Policy

The aim is to achieve the twin goals of containing inflation and promoting sustained and stable economic growth; provide policy advice to the Government on deficit financing and public debt management; manage the balance of payments and foreign exchange reserves; provide payment services and ensure the stability of the financial system; conduct treasury and government securities related operations; and efficiently perform other international financial activities.

2.5.6 Financial Sector Developments

Critical activities cover the development of the financial systems; provide effective prudential supervision; ensure information access, market intelligence, and contingency planning to avoid systematic risks; assist banking and financial entities to become efficient and competitive; discover new modalities for delivering agricultural and industrial term credit; enhance the access of small and medium enterprises to investment funds; further develop the market in public and private debt and risk capital; and promote measures for inclusion of people hitherto bypassed in formal financial systems.

In addition, the Bangladesh Bank will continuously adopt necessary measures for taking a proactive stance in decision making; compiling relevant statistics and conducting high quality and timely economic research to review the country’s financial and economic conditions to support decision making; ensuring efficient and professional management of BB’s human and financial resources; and establishing BB’s distinct identity based on its values and strategic roles.

Bangladesh Bank

2.5.7 Banking Operation under BB

Karmasanghtan Bank
Ansar-VDP Unnayan Bank

Figure 02: Banking Operation under BB


Sources: Chowdhry, L.R. (2002, 2nd edition), “A Text Book on Banker Advances”

Some words used as a abbreviate form in the diagram are:

BKB Bangladesh Krishi Bank

RAKUB Rajshahi Krishi Unnayan Bank


BSB Bangladesh Shilpa Bank

BSRS Bangladesh Shilpa Rin Shangshta

BASIC Bangladesh Small Industries & Commerce.

BSBL Bangladesh Samabaya Bank Ltd.

CCBL Central Co-operative Bank Ltd.

PCS Primary Cooperative Societies.



3.1 Basic Information of Jamuna Bank Limited

Jamuna bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban (2nd, 3rd & 8th floor), 3, Dilkusha, C/A, Dhaka-1000, Bangladesh. The Bank started its operation from 3rd June, 2001.

JBL is a highly capitalized new generation Bank started its operation with an Authorized Capital of Tk. 1600.00 million and Paid-up capital of Tk. 390.00 million, as of December 2006 Paid-up capital of the bank raised to Tk. 1072.50 million. As of June 30, 2007, their paid up capital is Tk. 1,072,500,000.00, share Premium is Tk. 85,800,000.00, Statutory Reserve is Tk. 249,667,430.00 and profit is Tk. 154,504,076.00.

JBL undertakes all the types of banking transactions to support the development of trade and commerce in the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. The bank gives special emphasis on Export, Import, Trade Finance, SME Finance, Retail Credit and Finance to Women Entrepreneurs.

To provide clientele services in respect of international trade it has established wide corresponded Banking relationship with local and foreign banks covering major trade and financial interest home and abroad.

3.1.1 Nature of Business

· The principal activities of the bank are providing all kinds of commercial Banking Services to its customers.

· The other activities of the bank are providing of all kinds of Islamic banking services to its customers.

3.1.2 Vision

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

3.1.3 Mission statement

The Bank is committed to satisfying diverse needs of its customer 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.

3.1.4 Corporate Slogan

Your partner for growth

3.1.5 Sponsors

The sponsors of Jamuna Bank Limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialists and businessmen having wide business reputation both at home and abroad.

3.1.6 Management

JBL is managed by highly professional people. The present Managing Director of the bank is a forward looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The management of the bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers and known for its reputation.

3.1.7 JBL Corporate Culture

Employees of JBL share certain common values which help 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

3.1.8 Objective

· To earn and maintain CAMEL Rating `Strong’

· To establish relationship banking and improve service quality through development of strategies marketing plans.

· To remain one of the best banks in Bangladesh in terms of Profitability and assets quality.

· To introduce fully automated system through integration of Information Technology.

· To ensure an adequate rate of return on investment

· To keep risk position at an acceptable range (including any of balance sheet risk)

· To maintain adequate liquidity to meet maturing obligation and commitments

· To maintain a healthy growth of business with desired image

· To maintain adequate control systems and transparency in procedure

· 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 clinical norms, transparency and accountability

3.1.9 Strategies

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

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

· To identify customers credit and other banking needs and monitor their perception towards our performance in meeting those requirement.

· To review and update policies, procedures and practices to enhance the ability to extend better services to customers.

· To train and develop all employees and provide adequate resources so that customer needs can be responsibly addressed.

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

· To cultivate a working environment that fosters positive motivation for improved performance

· To diversify portfolio both in the retail and wholesale market

· To increase direct contract with customers in order to cultivate a closer relationship between the bank and its customers.

3.1.10 Strategic Business Plan

  • Though Jamuna Bank is engaged in conventional commercial banking it also considers the inherent desire of the religious Muslims, and has launched Islami Banking system and established one Islami Banking Branch in the year 2003. the Islami Banking Branch is performing its activities under the guidance and supervision of a body called “SHARIAH COUNCIL”.
  • The bank is committed to continuous research and development so as to keep pace with modern banking.
  • The operations of the Bank are computerized to ensure prompt and efficient services to the customers.
  • The bank has introduced camera surveillance system (CCTV) to strengthen the security services inside the bank premises.
  • The bank has introduced customer relations management system to asses the needs of various customers and resolves any problem on the spot.
  • The bank has also introduced full online Banking facility to the customer.

3.1.11 Present status of JBL

Sl.No Particulars 2007(BDT in million) 2006(BDT in million)
1. Authorized Capital 1600.00 1600.00
2. Paid-up Capital 1,072.50 1,072.50
3. Reserve fund & other Reserve 629.33
4. Deposit & other Account 17,491.34 17,284.81
5. Loan and Advances 13,504.49 12,796.63
6. Total contingent Liabilities 6,178.87 6,424.08
7. Investment 2,550.59 2,552.67
8. Total Assets 21,423.07 20,157.02
9. Total Operating Income 512.64 563.93
10. Total Operating Expenses 210.33 226.38
11. Profit before provisions 302.32 337.55
12. Total profit before taxes 155.61 231.44
13. Net profit after Taxation 19.56 127.29
14. Retained Surplus 20.85 128.39
15. Earning Per Share (EPS) 1.82 14.84
10. Net Profit/loss 20.85 309.47

Table 03: Highlights for the year 2007 and 2006

Organogram of Jamuna Bank Limited


Figure 03: Organogram of Jamuna Bank Limited

3.2 Corporate Information at a Glance

Registered Name : Jamuna Bank Limited

Registered Head office : Chini Shilpa Bhaban (2nd, 3rd & 8th floor)

3, Dilkusha C/A Dhaka – 1000

Phone No Bank : 9570912, 9555141

Fax No : 88-02-9570118, 9565762

E-mail Address :

Web site:


Date of incorporation : 3rd June 2001

Authorized Capital : Tk.1600.00 Million

Paid up capital : Tk.390.00 Million

Number of Branches : 35 (Thirty Five Branches)

Chairman : MR. Md. Tajul Islam

Managing Director : <href=”#rahman>Mohammed Lakiotullah

Auditor : Ms. G. Kibria & Company, Chartered Accountants

3.3 Business Performance

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

3.3.1 Target Market for Loans and Advances

· Agro processing industry

· Textile spinning, Dyeing/printing

· Export oriented Garments, Sweater

· Foods & Allied

· Paper & products

· Engineering steel mills

· Chemical, Pharmaceuticals etc

· Telecommunication

· Computer Software and information technology

· Manufacturing of artificial flowers

· Electronics

· Infrastructures

· Oil & gas

· Jewelry and diamond cutting and polishing

· Liquefied Petroleum Gas (LPG)

· Compressed Natural Gas (CNG)

· Tiles

· Ceramics

· Small and Medium Enterprises (SME)

3.3.2 Product or service offer by bank

· Retail Banking

· Deposit taking including special schemes viz. MSS, MBS, DBDS, TBDS etc.

· Remittance and collection

· Import and Export handling and financing

· Corporate Banking

· Loan syndication

· Project Finance

· Investment Banking

· Consumer Credit

· Lease Finance

· Hire Purchase

· 24 Hours Banking Q-cash ATM

· Personal loan for women

3.3.3 Three Themes for Growth

· Introducing Card Network and electronic banking.

· Expanding personalized services

· Building strong presence in the market with reputation.

3.3.4 R&D: Investing into the Future

Excellence in banking operation depends largely on a well equipped and efficient Research and Development Division. Such activities require the investment of substantial resources and a set of qualified personnel with multidisciplinary background. Although it is not possible at this stage to undertake R&D activities similar to those of the banks in the developed countries, Jamuna Bank’ has established a core Research and Planning Division comprising skilled persons from the very inception of the Bank.

3.3.5 Human Recourses:

They sincerely believe investment in human recourses ultimately pays high divided and also recognize the intellectual capital is the most important asset for the Bank. The Bank offers competitive comprehensive package to the employees. They recognize the importance of the developing a well trained professional staff whose skill and dynamic X-ray vision and deep commitment will steer the Bank through the turbulence of globalize business scenario to growth and prosperity.

The bank also recognizes the importance of employee participation in standardization and general well-being of the company. They believe that their success depends on our employees who are working together in the interest of our customers. They follow the under-mentioned policies for the development of our human resource.

1) The Bank committed to nurturing the employee relationship by continuous development of innovative reward and incentive programs that focus on long and short term operational and strategic goals.

2) Emphasis is given to teamwork, training and philosophy of internal promotion to enhance the empowerment of employees

3) For free exchange of positive ideas within the workplace a policy is adopted for open, honest and two –way communication.

4) For maintaining their human resources they reward them with performance bonus, overseas trip, promotions, and increments reasonably.

Besides developing the human resources professionally, with the view of this Jamuna Bank has established a library where all sorts of books including professional books are available so that the officers and executives can sharpen and update their knowledge.

3.3.6 Information technology

Use of technology for providing prompt services to customers is inevitable for a service industry like bank. They have a strong conviction of applying information technology in their operation for ensuring prompt but accurate service to their customer. All of their branches are connected with on-line. They have established 45 ATMs. They have already introduced direct debit card, credit card in limited range, tele banking. All these, they believe “would take your bank to a newer height in auto-banking services.”

3.3.7 Training Division

The Bank has set up Training Institute for providing training facilities to its executives/officers and this training institute was established in September, 2006. The Training Institute has already conducted a number of foundations and specialized training courses. A number of officers were sent to Bangladesh Institute of Bank Management (BIBM) and other training institutes at home and abroad for specialized training on various aspects of banking.

3.3.7 Social responsibility

In the backdrop of profound financial success the benign Board of Directors and prudent management considered the formation of Jamuna Bank Foundation through which some social welfare activities can be rendered to the society. For the last few years, they are consistently expanding their social welfare activities. They have distributed relief to the various disaster-affected areas of the country. They have contributed Tk.1.00 million to Muktijoddha Jadughar, Tk.1.00 million to Atish Dipanker University etc. The bank also distributed 27,000 new blankets among the distressed peoples. They have started scholarship programme to the meritorious but financially weak students in various parts of the country.

3.3.8 Correspondent Relationship

Jamuna Bank Limited has established correspondent relationship with leading International Banks in 117 countries through 152 correspondents to cover all important financial centers of the Globe. It endeavors to increase its network of Correspondent Relationship with prime International Banks and Financial Institutions in order to help satisfy the expanded needs of its customer globally Efforts are being made of established drawing arrangements with the overseas exchange house to bring home-bound remittance into the country through the Banking channel.

3.3.9 Automation and Customer Service

Banking is an industry has to cope with rapid change. Innovative and Application to technology to meet the needs to our customers are becoming more vital than ever before. From day one, Jamuna Bank Limited has been offering automated banking services to its customers through use of cutting edge technology. It is so being done to extended quick services with accuracy. They shall constantly try adapted their selves to every change and competition.

Jamuna Bank Limited got membership of the society for worldwide inter bank Financial Telecommunication (SWIFT) and going to provide the valued customers’ prompt & accurate trade related activities.

The Bank has signed an agreement with ITCL with view to introduced Q-cash ATM 24 hours banking services with provision for Debit/ Credit Card, Utility bill payment at Merchant location etc. From the month of July 2008, they have already started their VISA card for the customer. The Bank is contemplating to introduce online Banking facilities to its valued customers to facilities Branch to Branch transaction, withdrawals and remittances of fund through the Branch network.

3.4 Financial Performance of JBL

3.4.1 Authorized Capital & Paid up capital

Authorized Capital of the bank remains unchanged at Taka 1600Million in the year 2007 and the paid up capital of the Bank is Tk 1, 07, 25,000 ordinary shares of Tk. 100 each.

Year Authorized Capital (TK) In Million Paid Up Capital (Tk) In Million
2005 1600.00 429.00
2006 1600.00 1072.50
2007 1600.00 1072.50

Table 04: Authorized & Paid up Capital of JBL

Figure 04: Authorized & Paid up Capital of JBL

3.4.2 Reserve fund and other reserve

In the year 2005 the total reserve was taka 487.46 Milloin, but in the year 2006, it was increased on taka 629.33 Million by the difference is taka 141.87 Million. At the year of 2007 it is reached at taka 703.67 Million.

Year Amount (TK in Million)
2005 487.46
2006 629.33
2007 703.67

Table 05: Reserve Fund of JBL

Figure 05: Reserve Fund of JBL

3.4.3 Deposit

Deposit is termed as the life –blood of a commercial Bank. In the year 2005 Jamuna Bank was able to mobilize a total deposit of Tk. 14454.13 million. In the year 2006 Jamuna Bank was able to mobilize a total deposit of Tk. 17284.81 million. And in the year 2006 Jamuna Bank was able to mobilize a total deposit of Tk. 17491.34 million. Efforts are on to have a balanced deposit mix to solidify the deposit base further.

Year Amount Of Deposit (Tk In Million)
2005 14454.13
2006 17284.81
2007 17491.34

Table 06: Deposit Position of JBL

Figure 06: Deposit Position of JBL

3.4.4 Investment:

On December 31, 2005 the total amount of investment is Tk. 2037.84 Million. On December 31, 2006 the total amount of investment is Tk. 2552.67 Million. And on December 31, 2007 the total amount of investment is Tk. 2550.59 Million. The investment portfolio comprising Government Treasury Bills etc. contributed mainly towards fulfillment’s of Statutory Liquidity Requirement.

Year Amount (TK in Million)
2005 2037.84
2006 2552.67
2007 2550.59

Table 07: Investment Position of Jamuna Bank

Figure 07: Investment Position of JBL

3.5 Internal Control and Audit System

With a view to reviewing and evaluating internal control system the bank has an Internal Control & Compliance Division managed by experienced and efficient personnel. There are three departments under the Division namely

³ Audit and Inspection Department

³ Compliance Department &

³ Monitoring Department

3.6 Appointment of Auditors

M/s. G. Kibria & Company, ‘A’ graded firm of Chartered Accountants as identified by Bangladesh bank was appointed as external auditor for the Bank in the 5th Annual General Meeting for the third consecutive year.

3.7 Credit Rating

3.8 Corporate Banking

When the bank do business with big parties such as, who have

1. Blue chips in the market

2. High turnovers

3. Excellent Profit

4. Long Reputation in the market

5. Goodwill

6. Who are under legal bindings by the country law

3.9 Online Banking

The main features of JBL online Banking are as follows:

S Centralized Database

S Platform Independent

S Real time any branch banking

S Internet banking interface

S ATM interface

S Corporate MIS facility

3.10. 24 hours banking Q-Cash ATM

Q-cash is a self-service automated network that services all your banking needs – The JBL Q-cash card is more than just an ATM card.

It can be used as a combination of debit and credit card. More importantly JBL Q-cash card contains a microchip that allows it to store money as well as transaction and account information within transforming the way you do your banking. To Q-cash network offer all your banking requirements without ever setting foot in a bank. It’s more than just an ATM service for quick cash withdrawals or account inquiries.

With the unique point of sale (POS) terminals situated in shops, restaurants and other service centers around the city, any one can use their JBL Q-cash card with the JBL Q-cash card they will be able to access banking services and account information at all times from any of 50 ATM and numbers POs (Point Of Sale) terminals around the city, revolutionizing your everyday banking transaction. JBL Q-cash card provides. JBL Q-cash card provides round the clock banking. ATM operates 24 hours to offer.

Cash withdrawals from any Q-cash logo marked ATM Card can store account information within and record transactions offline. ATM and POS services can be accessed without the need for online authorization from your bank.

3.11 Eighth Anniversary of JBL

Jamuna Bank Limited arranged a customers’ night on the occasion of the eighth anniversary of the bank at Bangladesh-China Friendship Conference Centre in the city Wednesday.

Chairman of the board of directors of the bank Md Tazul Islam was present as the chief guest at the function. About 44 premier customers of the bank were awarded the ‘Business Excellence Award-2007’ (Gold Medal) at the function. Vice Chairman of the bank Kanutosh Majumder, executive committee Chairman Nur Mohammed, directors Md Sirajul Islam Varosha, Sakwat, Abu Khair Mohammad, Mohammed Nurul Alam, sponsor-directors Md Atiqur Rahman, Golam Dastagir Gazi and Managing Director Mohammed Lakiotullah, Additional Managing Director Md Motior Rahman, deputy managing directors MA Salam and Md Alauddin Al-Azad, Company Secretary Md Anwar Hossain and all executives of the bank and a large number of clients of the bank attended the function.

3.12 Prevention of Money Laundering

In line with the provisions of Money Laundering Prevention Act 2002 and Bangladesh Bank instruction and guidance Jamuna Bank Limited has strengthen Anti Money, Laundering activities. Besides creating awareness among the valued customer, the Bank also conducted a number of Training Programs for its officials. A good number of officials of the Bank participated in training programs/workshops.

3.13 Outlook

They expect to continue their endeavor for a strong asset base and automated banking in the years ahead. Through their personalized services to the valued clients and integrated approach the Bank aims to maintain a strong presence in the banking sector of Bangladesh. They also plan to focus on customers’ satisfaction as the highest priority and on managing the core assets and cost controls to maximize the shareholders’ value, In this competitive market environment Jamuna Bank Limited is confident to make increased gains in revenue, income .+, and return on capital.

3.14 Future Thrust

(a) Full duplex on-line banking

(b) SMS Banking

(c) Merchant Banking

(d) Enhancing In-house Training Facilities

(e) By modernizing the Training Institute

(f) Innovation and introduction of new liability/asset products

(g) Credit card

(h) Internet Banking

(i) Opening new branches

(j) Disaster Recovery Site (DRS)

(k) Expansion of business network at home and abroad

3.15 Competitors

Competitors of the JBL are others commercial banks, it can be private or public and financial institutions such as insurance companies, lease companies etc. Main branch of JBL is situated in Dilkusha Commercial Area, Dhaka that place is the main commercial place in Bangladesh and maximum financial institutions are situated in this area. So the main branch of JBL always does face lots of competition in its business.

3.16 Threat & new entries

New entries in the financial market always threat for banks and it is more threat for JBL. Because when any new financial company such as bank, insurance company, leasing company introduced in the financial market then it creates more competition with the existing companies and then JBL has to face competition with these new companies.

3.17 SWOT Analysis:

SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

3.17.1 Strengths:

· Experienced top management

· Satisfactory capital base

· Low infection in loan exposure

· Prospective IT infrastructure

3.17.2 Weakness:

· Limited market share

· Exposure to large loan

· Excessive dependency on term deposits

· Weak fund management

· High cost of fund

· Islamic Branch funds are not ring fenced

3.17.3 Opportunity:

z Regulatory environment favoring private sector

z Credit card

z Small and medium enterprises

3.17.4 Threats:

· Daily basis interest on deposit offered by HSBC.

· Increased competition in the market for quality assets

· Supply gap of foreign currency

· Overall liquidity crisis in money market

3.18 Balanced Sheet (Un-Audited) as on 30th June 2007

Property & Assets June 2007





In hand (Including Foreign Currency )

184,987,434 225,302,379
Balanced with Bangladesh Bank and its agent Banks (Including Foreign Currency ) 927,250,479 933,295,453
Balanced with Other Bank and Financial Institute 2,609,486,325 2,441,758,464
In Bangladesh

Outside Bangladesh





1,843,082,589 1,797,120,314
Money all call & Short Notice 900,000,000 555,000,000
Investment 2,550,593,964 2,552,670,092






Loans and Advanced 13,504,491,133 12,796,630,479
Loans, Cash Credit, Overdraft etc

Bills Purchased & Discount





Fixed Assets 166,813,992 137,358,479
Other Assets 579,446,407 515,001,213
Non Banking Assets
Total Assets 21,423,069,734 20,157,016,559

Balanced Sheet (un-Audited) as on 30th June 2007



Dec 2006


Borrowing from other Banking Companies , Agents etc 1,351,285,000 618,347,500
Deposit and other Accounts 17,491,342,105 17,284,811,793
Current Accounts & other Accounts

Bills Payable

Saving Bank Deposit

Short Term Deposit