General Banking Activities of IFIC Bank Ltd

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General Banking Activities of International Finance Investment and Commerce Bank Ltd


The internship report is a partial requirement for the Bachelors of Business Administration. As a part of internship program, The placed at Stock Exchange Branch of International Finance Investment and Commerce (IFIC) Bank Limited in Dhaka. During the three month internship. The learned a lot about commercial banking operation of the organization.

This report not only explores IFIC Bank’s activities as one of the leading non-government companies, but also highlights the role of IFIC Bank in the financial sector of Bangladesh.

This report contains information about all commercial activities that the bank is dealings with. The discussed with banking activities in a classified manner. The divided this report in two major parts. First one is “General Banking operations”. The second part belongs to “Loans and Advanced”.

General banking operation includes all the general activities performed by the bank. The part one covers the following tropic in a systematic manner. Then have discussed about the types of account holder and different types of accounts such as-Saving Account, Current Account, and Fixed Deposit Rate (FDR), Pension Saving Scheme (PSS) etc.

The activities performed in cash department and the basic matter to be look after. Remittance collection and bill payment procedure section covers the pay order, TT, and DD, clearing of cheque, IDBC, IDBR. The discussed about the account section where the maintenance of transfer book, cash vouchers, and different types of register book.

The report also covered the Loans and Advance Section of the branch where explain different types of loan such as-Auto loan, Consumer loan, Easy loan, Porua Loan, Flexi Loan, Thikana Loan, Possession Loan, Peshajibi Loan, and Retail Loan etc.

Then explained credit policy and portfolio, risk management, financial highlight, new product, history of Stock Exchange Branch, function and various department, target customer of IFIC Bank, documentation of Loan, credit Folio, manager conference, yearly report, SWOT analysis and many other thing are included this report.

Chapter One


1.0 Introduction:

Due to globalization and expansion of international Business, finance plays the major roles for the economic development. The development of a modern economy would not have been possible without the use of money. A fundamental characteristic of money is that it is like a collective commodity. There is a parallel relationship between the money and banking. Bank is an important and essential financial institution for the necessity of the use of money and the protection of the money.

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 different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, IFIC Bank Ltd. was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cent were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.

IFIC Bank Limited has already made significant progress within a very short period of its existence. The Bank has been graded as 4th 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 operation.

IFIC Bank Ltd. offers all kinds of Commercial, Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by Bangladesh Bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.

1.1 Origin of the Report:

This internship report entitled “General Banking Activities of IFIC Bank Ltd” has started at July 06, 2010 under the instruction of honorable internship supervisor Md. Mamun Ur Rashid sir for the partial fulfillment of the requirement of BBA program.

1.2 Scope of the Report:

The scope of this paper is limited to the organizational structure, background, and objectives, functions, and performance of IFIC Bank Ltd as a whole. The scope is also limited to different general banking aspects.

1.3 Objectives of the Report:

The first objective of writing the report is fulfilling the requirements of the BBA program. In this report, we have attempted to give on overview of International Finance Investment and Commerce Bank Limited in general.

The specific objectives of this report are:

· To familiar the history and operations of IFIC Bank Ltd.

· To show overall investment proposal, appraisal procedures, documentation system of IFIC Bank Ltd.

· To identify strength and weakness of operations of IFIC Bank Ltd.

· To identify the problems related to operation faced by IFIC Bank Ltd.

· To gather practical experience about operation of IFIC Bank Ltd.

1.4 Research Methodology:

In the organization part, much information has been collected from different published articles; journals, brochures, previous and recent annual report of IFIC Bank Limited and also based on the experience that gathered during the period of internship. Within this period worked in two departments, General Banking (GB) department and Loans & advance departments.

1.5 Sources of Data:

All the information incorporated in this report has been collected both from the primary sources and as well as from the secondary sources.

Primary Source: Personal experience gained by working in, different desks and face to face communication with employees of the IFIC Bank Ltd.

Secondary Source: Secondary sources of data include

· Annual reports of IFIC Bank Ltd.

· Data collected from internal report.

· Bank records.

· Journals of the Bank

· Different books, training papers, manuals etc. related to the topic

· Official Website of the Bank.

1.6 Limitations of the Study:

· As, had more dependence on the primary sources, so there might be some level of inaccuracy with those collected information. Though, adequate verification and cross- checking was used, to minimize the error level.

· Confidential information regarding past profit or product cost, financial information was not accurately obtained. Alike all other banking institutions, IFIC Bank Ltd is also very conservative and strict in providing those information. In those cases, have relied upon some assumptions, which in result have created certain level of inaccuracy. Still, had tried best in obtaining those sensitive in formations, as much as possible.

· In reality it was hard to understand all the concepts and acquire sufficient knowledge about the particular field within three months which cover the Internship program.

Chapter Two

An Overview of the IFIC Bank Limited

2.0 Banking Industry-Overview:

Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more important in a developing country like Bangladesh. The whole scenario of the economy of a country can be ascertained by examining the condition of the banking sector. In Bangladesh, the banking sector dominates the financial sector and macroeconomic management largely depends on the performance of the banking sector. Banking sector grew primarily in the public sector with main emphasis on restructuring of the financial system and development needs of the war-torn economy with gradual liberalization in subsequent years. It was increasingly felt that banks should be allowed in the private sector for giving a fillip to development process on the basis of private initiative. In the 80’s for the first time a number of banks in the private sector were allowed. Subsequently in the mid 90’s some more banks in private sector also commenced operations. Finally, in 1999, 3rd generation of private sector banks was given permission to operate. As a result while up to 80’s public sector banks dominated financial sector, banks in the private sector were given increased responsibility with the passage of time.

Private commercial banks are divided into three groups according to their commencement of business. They are familiar in the name of 1st generation, 2nd generation and 3rd generation banks.

1st Generation Banks (Established 1982-1988):

National Bank Limited, The City Bank Limited, United Commercial Bank Limited, AB Bank Limited, IFIC Bank Limited, Islami Bank Bangladesh Limited and Al-Baraka Bank Bangladesh Limited.

2nd Generation Banks (Established 1992-1996):

Eastern Bank Limited, Prime Bank Limited, National Credit & Commerce Bank Limited, Southeast Bank Limited, Dhaka Bank Limited, Al Arafa Islami Bank Limited, Social Investment Bank Limited and Dutch-Bangla Bank Limited.

3rd Generation Banks (Established 1999 to present):

Mercantile Bank Limited, Standard Bank Limited, One Bank Limited, EXIM Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, First Security Bank Limited, Bank Asia Limited, the Trust Bank Limited, Jamuna Bank, BRAC Bank Limited and Shahjalal Bank Limited.

Number of Organization in the Industry

Nationalized Commercial Banks 04
Specialized Banks 05
Private Commercial Banks 30
Foreign Commercial Banks 9
Number of Branches 6,930

Source: Scheduled Banks Statistics, Quarterly April’ 09- June’09

The following table shows the overall deposits of last three years. The total volume is shows in terms of deposit BDT. 251046.30 crores in 2009, while in 2008 the total deposit was BDT. 216105.00 crores. During the one-year the volumes of deposit have increased more than BDT. 34943 crore.

Table: 2.1 Overall Deposits

June 2007 June 2008 June 2009
184860.50 216105.00 251046.30

(Figures BDT in Corers)

Source: Scheduled Banks Statistics, Quarterly April’ 08 – June’09

The table below shows the overall advances of last three years. The total volume in terms of advances BDT. 255920.00 crores in 2009 while in 2008 the total was BDT. 215929 crores. During the one-year the volume of advances have increased more then BDT.39991 crores. Besides these the liquidity status of all the banks was satisfactory.

Table: 2.2 Overall Advances

(Figures BDT in Crores)

June 2007 June 2008 June 2009
190135.80 215929.00 255920.00

Source: Scheduled Banks Statistics, Quarterly April’ 09 – June 09’

2.1 Organization Overview:

As a fully licensed commercial bank, a highly professional and dedicated team is managing IFIC Bank (International Finance Investment and Commerce Bank Limited) with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so the bank and its responsibilities itself changed in the market condition. IFIC Bank Ltd is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cent were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the rest is held by the general public.

IFIC Bank Ltd. being a Banking company has been registered under the companies Act 1913 with its registered office at BSB Building (8th, 10th, and 15th to 19th floor) 8 Rajuk Avenue, Dhaka 1000. IFIC Bank operates as a scheduled Bank under Banking license issued by Bangladesh Bank, the central bank of Bangladesh. This Bank is having an authorized capital of Tk. 500 million and Paid up Capital Tk. 406.44 million sponsored by 14 members of board of directors.

2.2 Milestones in the Development of IFIC BANK:

  • Established as an Investment & Finance Company under arrangement of joint venture with the govt. of Bangladesh.
  • Commenced operation in Foreign Exchange Business in a limited scale.
  • Obtained permission from the Govt. to operate as a commercial bank.
  • Set up a its first overseas joint venture (Bank of Maldives Limited) in the Republic of Maldives (IFIC’s share in Bank of Maldives Limited was subsequently sold to Maldives Govt. in 1992)
  • Commenced operation as a full-fledged commercial bank in Bangladesh.
  • Set up a joint venture Exchange Company in the Sultanate of Oman, titled Oman Bangladesh Exchange Company (subsequently renamed as Oman International Exchange, LLC).
  • Set up its first overseas branch in Pakistan at Karachi.
  • Set up its second overseas branch in Pakistan at Lahore.
  • Set up its first joint venture in Nepal for banking operation, titled Nepal Bangladesh Bank Ltd.
  • Set up its second joint venture in Nepal for lease financing, titled Nepal Bangladesh Finance & leasing Co. Ltd. (which was merged with NBBL in 2007)
  • Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture bank: NDLC-IFIC Bank Ltd., subsequently renamed as NIB Bank Ltd.
  • Acquired MISYS solution for real time on-line banking application.
  • Core Risk Management implemented.
  • Corporate Branding introduced.
  • Visa Principal and Plus (Issuer and Require) Program Participant Membership obtained.
  • Observing 25th Anniversary of Customer Satisfaction.
  • 64 Branches offering Real Time On-line banking facility.
  • All Branches of IFIC Bank is operating under state-of-art world class Real Time On-line Banking Solution.

2.3 Vision of IFIC Bank:

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

2.4 Mission of IFIC BANK:

IFIC Bank’s Mission is to provide service to their clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make their position unique in giving quality service to all institutions and individuals that they care for.

In Broad sense, their mission is to provide service to their clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make their position unique in giving quality service to all institutions and individuals that they care for.

They are committed to the welfare and economic prosperity of the people and the community, for they drive from them their inspiration and drive for onward progress to prosperity.

They want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary.

In an intensely competitive and complex financial and business environment, they particularly focus on growth and profitability of all concerned.

2.5 Objectives of IFIC BANK:

  1. IFIC Bank Limited is designed to provide commercial and investment banking services to all types of customers ranging from small entrepreneurs to big business firms. In this regard it emphasizes on the priority sectors of the economy like agriculture, industry, housing and self-employment.
  2. Besides the bank aims to provide different customer friendly deposit and loan products in the field of personal banking to fulfill the banking needs of individual customers.
  3. On delivery of quality service in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to their customers.

2.6 Management Hierarchy:

2.7 Organization Structure and Responsibilities:

The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.

2.8 Functional Structure of IFIC:

2.8.1 General Banking Section:

Its main functions include –

  1. Issuing of power of attorney to the officers of the Branches.
  2. Maintaining general correspondence with Bangladesh Bank and other Banks etc.

2.8.2 Head Office Accounts:

It deals with all the head office transactions with Banks and its Branches and all these are controlled under the following heads:

  • Income, Expenditure Posting: All income and expenditure are maintained and posted under this head.
  • Cash Section: Cash section generally handles cash expenditure for office operations and miscellaneous payments.
  • Bill Section: This section is responsible for only inland bills.
  • Salary Wages of the Employees: Salary and wages of the head office executives, officers & employees are given from this department.
  • Maintenance of Employee Provident Fund: Here employee’s provident fund accounts are maintained.

2.8.3 Consolidation of Branch’s Accounts:

All branches periodically (especially monthly) send their income & expenditure i.e., profit and loss accounts and head office made the consolidated statement of income and expenditure of IFIC Bank Limited. Here Branch statements are reviewed. This division also prepares different monthly, quarterly, half-yearly statements and submits to Bangladesh Bank. It also analyzes and interprets financial statements for the management and Board of Directors.

2.8.4 Credit Division:

The main function of this division is managing IFIC Bank’s credit portfolio. Major functions are the followings:

1) Receiving proposal

2) Appraising the proposals

3) Getting approval from the head office credit committee.

4) Communication with the customer and sanctioning the credit.

5) Monitoring and follow-up of the credit facilities

6) Setting prices for credits and making it effective.

7) Prepares required statements as made mandatory by the Bangladesh Bank.

2.8.5 International Division:

The objective of this division is to assist the management to make international dealing decisions and guide Branches to implement the decisions made. Its functional areas are follows-

  1. Maintaining correspondence relationship.
  2. Monitoring foreign trade & exchange dealings.
  3. Maintaining accounts and reconciliation;
  4. Authorizing of signature and test key;
  5. Monitoring Foreign Exchange returns &statement;
  6. Sending updated exchange rates to concerned branches.

2.8.6 Information Technology Division:

IFIC Bank uses automated accounting system. Its transaction system is fully automated. And the computer Division is responsible for keeping the system running. The major functions of this division are: –

  1. Designing software to support the account operation;
  2. Provide required hardware & software.
  3. Updating software if there is any lacking.
  4. Train the concerned executives and officers regarding the operation of newly developed software.
  5. Hardware & software trouble shooting;
  6. Provides updated CD’s of Online accounts to the branches;
  7. Provides routine check-up of computers of different branches.

2.8.7 Public Relations Division:

Public Relations Division is responsible for making liaison with the stakeholders. The Board’s routine functions can be enumerated as follows:

1) Receiving and sanctioning of all advertisement application;

2) Keeping good relation with different newspaper offices;

3) Inviting concerned one for any occasion;

4) Keeping good relation with different offices of electronic media.

2.8.8 Marketing Division:

Marketing division is responsible for making the stakeholders concerned about the different products of IFIC Bank Limited. The marketing department is always in persuasion for attracting different customers to take their facilities.

2.8.9 Human Resource Division:

HRD performs all kinds of administrative and personnel related matters. The broad functions of this division are as follows:-

  1. Selection & recruitment of new personnel
  2. Placement of manpower
  3. Dealing with transfer, promotion and leave of personnel
  4. Training & development
  5. Termination and retrenchment of employees
  6. Keeping records of every employee of the Bank
  7. Maintenance of employee welfare fund
  8. Arranges workshop for employees & executives;

2.8.10 Audit Division:

Audit division works as internal monitoring and inspection division of the company. The officers of this division randomly go to different Branches and examine the necessary documents regarding each single account. If there is any discrepancy, they inform the authority concerned to take care of that/those discrepancy. They help the Bank to comply with the rules and regulations imposed by the Bangladesh Bank. They inform the Bangladesh Bank about the current position of the rules and regulations followed by the Bank.

2.8.11 Credit Card Division:

IFIC Bank is a member Q-Cash VISA DEBIT/CREDIT card. The Q-cash card is more just than an ATM card. It can be used as a combination of debit and credit facility. Customers can withdrawal their money not only from IFIC’s booth but also they can withdrawal money from those bank’s booth who are also member of Q-Cash.

2.8.12 Merchant Banking and Investment Division:

This division concentrates its operation in the area of under writing of Initial Public Offer (IPO) and advance against shares. This division deals with the shares of the company. They also look after the securities portfolio owned by the company. The company has a large amount of investment in shares and securities of different corporation as well as government treasury bills and prize bond.

2.8.13 Board and Company Secretary Division:

The main functions of this division are as follows:

  1. Conducting meeting of the Board of Directors;
  2. Dealing with Company Act;

2.8.14 IFIC Bank Training Institute:

IFIC Bank Training Institute is all along supporting the Bank through various in house training courses, workshop and seminars. The Institute is playing a significant role in strengthening the capabilities of their human resources.

2.8.15 IFIC Bank Foundation and Social Services:

The Bank has taken strong initiative to ensuring compliances and attaining greater social goals through good governance. Accordingly, IFIC Bank Foundation had been formed in the later part of 1990 to undertake social welfare related activities. IFIC Bank Limited has always laid emphasis on its commitment to the society and seeks to reinvest parts of its profits for community welfare. The Foundation and employees of the Bank take part in diverse charitable and voluntary programs. The main objective of the Foundation is to invest part of the Bank’s profit in poverty alleviation and community welfare. The Foundation has made allocation in different areas of poverty alleviation and primary health care programs for the low income group. Substantial fund has also been allocated for research works on various socio-economic issues confronting the nation. In all their business decisions, they strictly adhered to environmental and safety regulations and in no way do they compromise on ecological imbalance for which future generation.

2.9 Product and Services:

Besides traditional Banking services, IFIC Bank Limited has added a wide range of products/services in its service portfolio. Various products & services offered by IFIC Bank Ltd. include:

2.9.1 Deposit Schemes:

· Current Account Deposits;

· Savings Bank Deposit;

· Fixed Deposit;

· Short Term Deposit;

· Monthly Benefit Deposit Scheme;

· Special Deposit Scheme;

· Pension Savings Scheme;

· Double Benefit Scheme

2.9.2 Loan Schemes:

The IFIC Bank is offering the following loan and advance product to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client. The loan and advance products are as the following:

· General Loan Scheme;

· Lease Finance;

· Consumer Credit Scheme;

· Car Loan;

· Any purpose Loan;

· Loan Against Salary;

· Doctors loan;

· House Building Loan/Apartment Loan Scheme

· Small And Medium Enterprise Scheme,

· Credit Card;

· Educational Loan;

· Marriage Loan;

· Vacation Loan;

· Computer Loan;

· CNG Conversion Loan.

2.10 Automation in Banking Operation:

Technology integration for automation of business process and procedures is an integral part of IFIC Bank. Since the very beginning, they have made conscious efforts for induction and up gradation of information technology at various levels to gain competitive edge over the others. Almost all their branches are now in an automated environment as far as customer transactions are concerned and excepting a few branches in locations not accessible by Lease Line, all other branches are under a wide area network. Their Website “” is frequently visited from home and abroad. The site is always updated with current information about their services and products. All necessary information about their product and services are available at their website.

2.11 Capital Structure:

The authorized capital of IFIC Bank Limited is Tk. 500 million and with the increase of Paid-up Capital to Tk. 406.44 million, the capital base of IFIC Bank Limited has become one of the strongest. The Bank raised its Paid-up Capital from Tk. 406.39 million to Tk. 406.44 million during 2005. The total Capital Funds of the Bank at the year end 2005 stood at Tk 1754.41 million against Tk. 1,608.80 million in the previous year. Total deposit Increase from 20,774.49 million to 22,505.17 million during 2005.

2.12 Performance at a Glance:

The Authorized Capital of IFIC Bank Limited is Tk.500 Million. The Paid-up capital is Tk.406.44 Million at 31.12.2006. The highlights of financial position for the last 3 years are given below:

Table: 2.12.1

(Taka in Million)

Sl. Particulars 2009 2008
01 Paid up Capital 670.72 406.39
02 Total Capital 3,045.09 2,028.39
03 Capital Surplus 644.64 172.33
04 Total Assets 39,914.15 36,080.48
05 Total Deposits 29,900.05 28,620.91
06 Total Loan & Advances 28,361.46 25,490.66
07 Total Contingent Liabilities & Commitments 19,422.59 16,521.41
08 Credit Deposit Ratio 94.85% 89.06%
09 Percentage of Classified Loan Against Total Loans & Advances 8.11% 5.64%
10 Profit after Tax & Provision 964.93 253.83
11 Amount of Classified Loans during the year 2,299.90 1,437.39
12 Provision Kept Against Classified Loans 984.02 970.77
13 Provision Surplus/Deficit 1.59 678.03
14 Cost of Fund 6.58% 6.35%
15 Interest Earning Assets 35,520.23 30,940.57
16 Non-interest Earning Assets 4,393.92 5,139.91
17 Return on Investment (ROI) 13.56% 9.11%
18 Return on Assets (ROA) 2.42% 0.70%


2.13 An Overview of Stock Exchange Branch of IFIC Bank Limited:

In October of 2009 IFIC bank Limited has opened its 70thbranch in the, 16, Motijheel C/A, at Dhaka. It has a total number of 20 employees. The workforce is very much co-operative both to each other and to the clients. It is expected that soon it can be counted among the best five operated branches of IFIC Bank both in terms of profitability and operational efficiency.

2.13.1 Organizational Hierarchy of Stock Exchange Branch:

As any other commercial bank in Bangladesh, the Senior Assistant Vice President/Relationship Manager is fully responsible for the activities of the bank and accountable for the day-to-day activities of his branch. Under him, the Assistant Vice President or Operational Manager is working. The AVP supervises all the operations of each department. Then the other three departments have their in-charges, who supervise the activities of their respective departments.

2.13.2 Departments within Stock Exchange Branch:

This branch has four departments as the following.

1. General Banking (GB) Department

2. Credit Department

3. Cash Department &

4. Marketing and Customer Care Department

The bank also has an Accounts Department, which has only one employee. He is responsible for making salary statements, checking and maintaining vouchers and accounts, credit card management, etc.

General Banking (GB) Department:

Some of the day-to-day activities of this department are the following.

· Account Opening

· Issuance of Cheque

· Receiving Cheques for Clearing, Transport, and Dispatch

· Issuance of TT {Telegraphic Transfer), PO (Pay Order), DD (Demand Draft), etc.

· Opening and Maintaining of FDR, MBDR, and other Scheme Deposits

· Fund Transfer

· Closing and Transfer of Accounts

· Maintaining the Locker of the Bank

· Outward Clearing of IBC and OBC

· Maintaining On-line Voucher

  • Cash Department:
  • This department is responsible for cash payment and receipt. The employees in this department are also liable for computer posting, passing cheques, and accuracy of posting, balancing on-line accounts, etc.
  • Credit Department:
  • This department is responsible for the following jobs.
  • Meeting the requirements of existing and potential RCS customers
  • Meeting the requirements of Head Office and Customers of General
  • Credit to cooperate with other departments for smooth operation
  • Preparing CIB and CL Statements
  • Preparing Credit Proposal and Statement
  • Administration of Retail Credit

Marketing and Customer Care Department:

Searching for new customer, answer the inquiry about the product to the customer. They also look whether customer all documents are given.

2.14 SWOT Analysis of IFIC Bank Limited:

SWOT analysis enables an organization to have a comprehensive insight about its current position in the industry compared to its competitors. It provides the organization a scope to strategically improve its position in the market. Here, the internal strength and weakness of IFIC Bank Ltd. as well as the external opportunities and threats are discussed-

2.14.1 Strength:

Company Reputation:

Company reputation is the best strength of IFIC Bank Limited. Since its inauguration IFIC Bank Ltd has managed to operate with an image to serve people. It has the reputation to work with integrity and efficiency.


IFIC Bank Limited has sponsors from various sectors of Bangladesh. The most successful entrepreneurs from various sectors started this company. As a result there was a combination of different thoughts and skills in the management of the bank, which is very much essential for success in today’s competitive market.

Top Management:

IFIC Bank Limited has a very competent and experienced top Management. The current Managing Director Mr. Mosharraf Hossain has banking experience of 30 years. He had the experience of marketing and customer relationship management in his long career.

Strong employee bonding and belongingness:

Employees are one of the major assets of the company. The employees of IFIC Bank Limited have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards IFIC Bank Limited. The strong culture of this Bank is the main reason behind this strength.

Capital Structure:

The huge paid up capital of Taka 406.44 million gives IFIC Bank the strength to freely operate in the worst economic conditions. It also gives the depositors assurance of the safety of their deposits, which is very much important for a bank to achieve.

Facilities and Equipment:

IFIC Bank has a network of 82 Branches over the country which gives it the ability to reach a larger portion of the people of the country. Very few private banks have a network of this size. IFIC Bank is always in the endeavor to provide the best technology for its employees so that they can provide the best service to the customers. The automated banking system of the bank makes it very easy and quick for the employees to provide service.

The Bank has taken up a new project with Misys International Banking System Inc. (UK) to further upgrade its banking operation to state-of-art world class on-line banking solutions to provide faster and even more convenient centralized services to the clients.

2.14.2 Weakness:

Advertising and Marketing:

Marketing is the weak point of IFIC Bank Limited. It is far behind from its competitors in this side. Not much effort is given for introducing the people with its products.

Reference Appointment:

The practice of reference appointment is well established here. It is a big draw back, because without competitive recruitment process it is not possible to have qualified persons in right positions. And if right persons are not in the right position then it is not possible for a business concern to operate successfully.

Low Remuneration:

Low remuneration package is a major disadvantage for IFIC bank. If the employees are not satisfied with their return then it would be hard for the bank to have competent employees, which will hamper the service quality of the bank very much.

2.14.3 Opportunity:


The company has the opportunity to diversify its products and services with the huge paid up capital to back up the diversification process. In the developing economy of Bangladesh there is still opportunity to explore with diversification of operations such as Merchant banking, etc.

Online Banking:

The online banking system of IFIC Bank is not fully operational yet. There is a semi-online system operating, and some branches are still out of that system. By introducing full online banking system the bank can grab a strong position in the market.

2.14.4 Threats:

Multinational Banks:

Multinational banks are a major threat for IFIC Bank Limited. With their huge capital support and international connection they are tough competitors. The company should take special notice of the factor.

Default Culture:

The default culture is a foremost threat for the banking sector of Bangladesh. IFIC Bank Limited is not out of that threat. The bank should establish a sound credit policy and review it as often as possible to cope up with this problem.

Chapter 3


3.0 Credit Analysis and Description:

The Bank is committed to provide high quality financial services/products to contribute to the growth of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country. In achieving the aforesaid objectives of the Bank, Credit Operation of the Bank is of paramount importance as the greatest share of total revenue of the Bank is generated from it, maximum risk is centered in it and even the very existence of Bank depends on prudent management of its credit portfolio. The failure of a commercial Bank is usually associated with the problem in credit portfolio. As such, credit portfolio not only features dominant in the assets structure of the Bank, it is critically importance to the success of the Bank also.

3.1 Guiding Principles of Sound Lending:

It is necessary to develop a sound lending principle and modern lending techniques to ensure the performances of the credit provided by the bank. Credit is very much dependent on the judgment of the sanctioning authority. Banker’s ability in taking proper prior measures to minimize the risk is very important. To do this a Bank must follow the “Guiding Principles of Sound Lending” which include:

3.1.1 Principle of Safety:

The first lending Principle of sound lending is safety. The very existence of a bank depends upon the safety of its advances. Safety should not be sacrificed for profitability. So utmost care should be exercised to ensure that the funds go to the right type of borrower, are utilized in such a way that they remain safe and the repayment comes in the normal course.

3.1.2 Principle of Purpose:

The Bank should not lend money for any purpose for which the borrowers demand loan, the purpose should be productive. So another important point to be considered by a credit officer before lending is the purpose for which the loan is required and also the resources through which the borrower is expected to repay.

3.1.3 Principle of Liquidity:

The banker while making advance must see to it that the money lent is not locked up for a long time because, majority of Bank’s liabilities are payable either on demand or after short notice. So the banker should make sure that the loans are liquid enough to meet the banks liability structure. Liquidity means availability or readiness of bank funds on short notice. The liquidity of advance means its repayment on demand on due date or after a short notice. The loan must have fair chances of repayment according to repayment schedule. Otherwise, the liquidity position of a bank may be threatened.

3.1.4 Principle of Security:

The security offered by a borrower for an advance is insurance to the banker. It serves as the safety value for an unforeseen emergency. So another principle of sound lending is the security of lending. The security accepted by a banker to cover a bank advance must be adequate, readily marketable, easy to handle and free from any encumbrance.

3.1.5 Principle of Profitability:

Commercial Banks obtain funds from shareholders and if dividend is to be paid on such shares it can only be paid by earning profit. Even in the case of public sector banks although they work on service motive they also have to justify their existence by earning profit. This is not possible unless funds are employed profitably. So the fund should be employed in reliable and profitable sources, but for the sake of profitability, the other two principles safety and liquidity can not be sacrificed.

3.1.6 Principle of Diversification:

The advance should be as much broad based as possible and must be in conformity with the deposit structure. The advances should not be in one particular direction/ industry/ activity or one or few borrowers because adversity faced by that particular industry will have serious adverse affect on the bank.

3.1.7 Principle of National Interest:

The development of banking has reached a stage where a banker is required to identify his business with national policies. Banking Industry has significant role to play in the economic development of a country. So, the savings of the people which are mobilized by banks must be distributed to those sectors which require development in the country’s Planning Program.

3.2 Types of Loans and Advances:

On a broad basis IFIC Bank Limited offers two types of advances –

1) Unsecured Advance;

2) Secured Advance;

3.2.1 Unsecured Advances:

Unsecured advances are granted to a constituent, which is not backed by any security.


An unsecured facility is allowed in exceptional circumstances, only for a short period, with definite repayment arrangement, subject to restrictions imposed by Bangladesh Bank or any other competent authority to a customer based on his personal credit worthiness, standing and reliability. A definite arrangement for repayment, whether by installments or otherwise, must, as a rule, is ensured.

3.2.2 Secured Advances:

Secured advances are granted to a constituent that is guaranteed by tangible securities subject to margin restrictions. Secured advances given by the Credit Department are classified as follows:


Loans are a type of advance allowed to a constituent for a specific purpose and for a definite period.

Types of Applicants: Individual, firms, industries;

Time Duration: Short term- Up to 12 months; Medium term- More than 12 and up to 36 months; Long term- More than 36 months;

Mode of Distribution: The total loan amount is disbursed at a time or in trances within a specific time.

Mode of Repayment: The principal and interest are repayable by installment on agreed terms.


Loans allowed for construction of house (residential or commercial) fall under this type of advance-

Types of Applicants: Individuals, firms and bank staffs;

Loan Size: Maximum 75 lac.

Loan Period: Maximum 15 years.

Mode of Disbursement: The amount of loan is disbursed in three equal installments as under:

Mode of Repayment: The loan amount and interest are repayable through equal specific numbers monthly installments after the completion of house.


Lease financing is one of the most convenient sources of acquiring capital machinery and equipment whereby a client is given the opportunity to have an exclusive right to use an asset usually for an agreed period of time against payment of rent.

Type of Applicants: Manufacturing concerns.

Time Duration: Maximum for five years.

Mode of payment: Payment is made directly to the seller of the machines.

Mode of Repayment: At a specific rent, this is inclusive of the repayment of principal as well as interest for adjustment of the loan.

Other Features:

a) Non equity payment is required by the client.

b) Exempted from the tax for the lease-financing period.


IFIC Bank Limited plays a pioneer role in providing necessary finance to the fixed income group for buying items that are necessary for raising the quality of living through the Consumer Credit Scheme. Through this special scheme IFIC Bank Ltd. offer Necessity, Convenience and Comfort.

Types of Applicants: Reputed Government and Private Service holders.

Time Duration: Specific period as per agreed terms and conditions.

Mode of Payment: Payment is made directly to the seller of the goods after obtaining a portion of equity from the borrower and personal guarantee.

Mode of Repayment; The loan amount and interest are repayable through equal specific numbers monthly installments after the purchases of goods.


A Credit Card is an instrument assuring the Merchant (by the Acquirer) for the payment made by the Cardholder against goods, services or withdrawing Cash from Bank/Institution or Automated Teller Machine (ATM).

IFIC Bank Limited is a member of VISA and thus issuing VISA Card in Bangladesh. IFIC Bank is offering following types of VISA Card:

  • Gold VISA Card- International;
  • Gold VISA Card-Local;
  • VISA Standard (Silver) Card-International;
  • VISA Standard (Silver) Card-Local;

All Credit Cards are issued by IFIC Bank Card Division in Head Office. Branches just dispatch the application to Card Division and deliver the issued card to its customers. It also collects the Card Bill on behalf of Card Division.


IFIC Bank Limited is offering a unique credit scheme only for the Small and Medium Enterprise (SME).


The main objective of the Small and Medium Enterprise Credit Scheme is to provide credit in flexible terms and conditions for the development of small and medium enterprises in the region easily accessible by the branches of IFIC Bank Limited.

The second objective of this scheme is to create opportunity for employment and economic growth through providing facilities to develop the small and medium enterprise sector of the country.

Eligibility for Application: The entrepreneur of the Small and Medium Enterprise must have following qualities to avail the credit facility under the scheme:

  • Literate;
  • Minimum two years of management experiences of the business;
  • Age limit between 25-50 years;
  • Owner of a Small or Medium Enterprise;
  • The project must be financially viable and socially desirable;

Nature of Loan:

  • Working Capital;
  • Capital Machinery;

Wide Loan Coverage:

The scheme provides coverage for small enterprises up to Tk. 2, 50,000 and for medium enterprises up to Tk. 75, 00,000.

Time Duration:

One Year for the continuous loan;

Maximum five years for the term loan;

Mode of Repayment:

Continuous Loan- The client as per his requirement can withdraw the total loan limit time to time subject to certain conditions.

Term Loan- The client can withdraw the total loan amount at a time.


  • Personal Guarantee from two persons acceptable to the Bank.
  • Any other acceptable securities available to the borrower.
  • The borrower has to maintain a Savings A/C with a compulsory deposit of 5% of outstanding loan amount per month for building up his own fund.

3.3 Non Funded Facility:

Non funded credit facility to a customer refers to a bank’s commitment to a third party on behalf of the customer. The commitment itself constitutes facility but does not involve cash outflow from the bank. The bank’s commitment essentially states that in the event of occurrence or non-occurrence of a particular event, within a particular date, due to a particular reason or reasons, a specific sum of money shall be paid by the bank to the third party upon claim in a particular manner. The non funded facilities are:

  • Letter Of Credit:

A Letter of Credit is a commitment (undertaking) by the Bank to pay an agreed sum to the seller of goods on behalf of the buyer (client) under precisely defined condition. This is a non funded facility provided to the client for import of goods from abroad or in some cases to procure them locally.


General Banking Activities of IFIC Bank Ltd

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1.1 IFIC Profile

International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a fully fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the field of trade and commerce own 11.42% of the share capital and the rest is held by the general public.


IFIC Bank (International Finance, Investment and Commerce Bank Limited) originally named as International Finance and Investment Company was formed in October 1976. It obtained certificate of commencement on 28 February 1977 as an investment banking company. The company was established mainly to carry out banking and other financial business outside Bangladesh (especially in the oil-rich Middle-Eastern countries) either singly or in collaboration with other companies, banks and financial institutions. Bangladesh Bank allowed IFIC to transform itself into a banking company and accordingly, it was renamed and after completion of required legal formalities, it started full-fledged commercial banking operations on 24 June 1983.

Initially, the bank's authorized capital was Tk 100 million divided into 1 million ordinary shares of Tk 100 each. The paid up capital was Tk 71.5 million, which rose to Tk 80 million in 1986. 60% of the shares of the company were A-class ordinary shares owned by its sponsors and members of the general public. The remaining 40%, grouped as B-class ordinary shares, were held by the government of Bangladesh. On 31 December 2000, the authorized and paid up capital, after being enhanced several times, stood at Tk 500 million and 279.35 million respectively. On that date, total shareholders equity of the bank was Tk 1,120.48 million and its reserve funds totaled Tk 648.20 million, which comprised statutory reserves (Tk 378.48 million) and general reserve and retained surplus (Tk 269.72 million). The bank is listed with Dhaka and Chittagong stock exchanges.

IFIC conducts all types of commercial and investment banking functions. Deposits with the bank in 1984 were Tk 863.40 million and they rose to Tk 6,594 million in 1990, and to Tk 15,505.87 million in 2000. The bank follows flexible interest rate policy and the interest rates offered by it on its deposits since 1 May 1998 varied between 7.5% and 10.5%.

Total lending of the bank had increased from Tk 576.51 million in 1984 to Tk 16,233.79 million in 2000. Interest charged by the bank on its lending varied between 10% and 16.5% depending on area of lending and maturity. Insider lending (loans to directors) of the bank accounted for 18% of its total loans and advances as on 31 December 2000. On the same date, the bank's non-performing (classified) loans stood at Tk 6,130.8 million (37.77% of total loans and advances).

In December 2000, the total investment of the bank other than loans and advances accounted for Tk 3,375.43 million and the investment portfolio comprised government treasury bills, prize bonds, and shares and debentures of local and foreign companies. Foreign Exchange business of the bank during the year 2000 stood at Tk 36,500 million, which included export financing (Tk 16,546 million) and import servicing (Tk 15,886 million).

Total assets of the bank excluding off-balance-sheet items were valued at Tk 24,918.96 million in 2000, when the value of off-balance-sheet assets was Tk 8,048.2 million. In the same year, the bank earned a net profit (after tax and provisions) of Tk 192.93 million. Profitability of IFIC was seriously affected by the compulsory retaining of a huge amount of provision for classified loans and the transfer of accrued interest on non-performing loans to suspense account.

Overall management of the bank is vested in a 13-member board of directors with the managing director as the chief executive. In December 2000, the bank had a total of 1,659 employees and 54 branches including two overseas.

1.3 Goals and Objectives of IFIC Bank

o   To build up strong pillar of capital.

o   To promote trade, commerce and industry.

o   To discover strategies for achieving systematic growth.

o   To improve and broaden the range of product and services.

o   To develop human resource by increasing employment opportunities.

o   To enhance asset of shareholders.

o   To offer standard financial services to the people.

o   To create congenial atmosphere so that the client becomes interested to deal with the IFIC bank limited.

o   To keep business morality.

o   To develop welfare oriented banking service.

o   To offer highest possible benefit to customers.

o   As to its position among its counterparts is held high to let the viewers cast their very first look at it. 

o   To carry on the business of discounting and dealing in exchange of specie and securities and all kinds of mercantile banking.

o   To provide for safe-deposit vaults and the safe custody of valuables of all kinds.

o   To carry on business as financiers, promoters, capitalists, financial and monitory agents, concessionaires and brokers.

o   To act as agents for sale and purchase of any stock, shares or securities or for any other momentary or mercantile transaction.

o   To establish and open offices and branches to carry on all or any of the business abroad and within the country provided prior permission is obtained from Bangladesh bank.

1.4 Vision, Mission, and Core Values


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

1.4.2 Mission

To build IFIC Bank Limited into efficient, market driven, customer focused institution with good corporate governance structure. To provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.

1.4.4Core Values

For our customers: To become most caring bank-by proving the most courteous and efficient service in every area of our business

For our Employees: Promoting the well– being of the members of the staff.

For our Shareholders:

· Mr. Syed Anisul Huq   Director

· Mr. Mohammed Nayem Syed   Director

· Mr. S.M. Faruqi Hasan     Director

· Mr. Tanim Noman Sattar   Director

· Mr. Mahmudul Huq Bhuiyan Gov. nominated Director



i)   Financial policies

ii) Procurement policies

iii) Marketing policies

iv) Promotional policies

v) Lending policies

vi) Personal policies


The financial policies of any bank are the most important policies through which the whole banking activity is conducted. These policies are primarily conducted on:

  • Source of funds
  • Use of funds


The bank finance policy is acquiring funds from the following sources:

  • Deposits of account holders.
  • Interest on advances and loans granted to the borrowers.
  • Income and commission from the services provided by the bank.
  • Bank opens various types of accounts for its customers Services are provided for earning.
  • Interest income and commission bank providing the services to its customer.


Procurement policies are more concerned with manufacturing organizations. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. It involves attracting and holding the funds of the depositors. After the acquisition of funds, the bank invest the acquire funds. One alternative is to lend its money and earned interest markup or invest in govt. securities etc. as already mentioned in the above paragraph the major sources of funds for a bank are the deposit of the general and the other sources of income includes interest or markup charges received for various services offered by the bank to its clients.

A bank tries to attract maximum no. Of accounts so that it can increase it’s deposits and these lending ability. In order to get maximum no. of accounts the staff of the bank must be efficient as compared to the other banks and the manager of the branch must take personal interest in attracting deposits. Good quality of the service is the key to success.



Marketing policies are also one of the most important policies because they are related to the growth of the organization. Marketing for a bank would mean:

  1. Creation of new product and services.
  2. The bank marketing must be consumer oriented.

Following are the marketing policies of the IFIC.

    1. Keeping the track of latest development in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers.
    2. Development of products for the customers.
    3. Giving good services and maintaining good relations with the customers.

These policies can be implemented by providing the right product and service to the customer at the right place, at the right time, at the right price.  It is necessary for the managers to keep in touch with consumers, observe their needs and develop products, which meet their needs.


Public relation and advertising has assumed a great importance in the modern banking business. As for as promotional activities are concerned, the main objective of the bank is to inform the existing clients and other people about its new products or change in the existing services. IFIC establishes its purpose through:

  1. Direct contact with customers.
  2. Relation with business organizations.
  3. Community relations.


Every bank has its own lending policies except for those, which are common for all the banks, i.e. the policies, which are imposed on all the commercial banks by the SBP, are known as prudential regulations. The lending policies of IFIC are as follows:

Almost most all the bankers usually have a banking relationship with another bank. In case of customer who does not have an existing banking relationship, or does not want to disclose the existing relationship, then it is strongly recommended that at least for some time this particular account must be kept under observation.

· Certificate from the register of joint stock co. is entitled to commence business in


case of public Ltd. co)

· Work permit order form Ministry of Industry. (In case of Foreign Nation)

· Joint venture agreement (in case of joint venture)

·    Societies, Clubs and Associations

IFIC Bank requires the following documents duly completed shall be obtained from the customer at the time of current deposit account of Association/Club/Trust/ Society etc. Enclose Documents for Societies Club account:

·  Introduction of the A/C

·  Registration Certificate Under the Societies Registration Act, 1962

·  Copies of Memorandum, Articles of Association

· Board Resolution for Opening A/C dully certified by president/secretary.

·  List of exhibiting managing committee.

·  Seal

·  Bylaws

2.4   Saving Account (Individual /Joint)

Before opening of a savings Bank Account, the following formalities must be completed by the customer:

Requirements are:

· Introducer

· 2 copies of passport size photograph dully attested by introducer

· Valid passport/ ward commissioner's identification certificate

· Prescribed account opening form filled in properly by intending account holder

· Putting specimen signatures in the specimen card.

· Fill the KYC form

· Initial deposit Tk. 5000/- only

After fulfilling above formalities opens an account for the client and provide the customer with a deposit book and a checkbook in case of savings account and currents account for joint account, signatures of all the account holders are necessary.

2.5 Short-term Deposit (STD)

In Short-term Deposit, the deposit should be kept for at least 7 (seven) days to get interest. The minimum balance should be Tk.10 (ten) lac. In IFIC Bank various big companies, Organizations, Government Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice. Instance, under this scheme a deposit of Tk. 55,000/- gives a monthly income of Tk.500/-

2.6  Fixed Deposit Receipt (FDR) Account

They are also known as time liabilities or term deposits. These are deposits, which are made with the bank for a fixed period specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers high are of interest on such deposits. There are different types of rate for different period of FDR, here shows the FDR interest rate in the IFIC Bank Ltd. It can be change in any time.

Table 3.2: Fixed Deposit Receipts interest rate

Period (Month)

Below 50 lac

 25 lac & above

50 lac & above

1 month but less than 3 months




3 months but less than 6 months




6months but less than 1 year




1 year & above




2 years & above




(Source: IFIC Bank Limited, North brook hall road Branch)


2.7 Monthly Income Scheme

This scheme is specially designed for the benefit of the limited income group members. This helps to accrue small monthly savings into a significant sum at the end of the term. So, after the expiry of the term period the depositor will have a sizeable amount to relish on.

Table 3.3:  Final amount of monthly income Scheme.

Monthly Installment

After 5 years

After 10 years







(Source: IFIC Bank Limited, Bangshal Branch)

2.8 Monthly Saving Scheme

This scheme is specially designed for the benefit of the limited income group members. This helps to accrue small monthly savings into a significant sum at the end of the term. So, after the expiry of the term period the depositor will have a sizeable amount to relish on.

Table 3.4: Final amount of monthly saving Scheme


Monthly Installment (TK.)

After 3 year (TK.) @ 9.00%

After 5 year (TK.) @ 9.25%

After 8 year (TK.) @ 9.50%




































(Source: IFIC Bank Limited, North brook hall road Branch)


2.9 Special Deposit scheme (SDS)

For most of the people on fixed income the opportunity to supplement their monthly earning is a golden one. And IFIC Special Deposit Scheme gives a customer just that- Under this scheme, customers can deposit money for a term of 5 years. During the term period they can enjoy a monthly profit corresponding to their deposited amount. As for instance, under this scheme a deposit of Tk. 55,000/- gives a monthly income of Tk.500/-.

Table 3.5: Monthly Benefit Special Deposit scheme.

Deposited Amount

Monthly Benefit

Tk. 55,000/-

Tk. 500/-

Tk. 1,10,000/-

Tk. 1,000/-

Tk. 1,65,000/-

Tk. 1,500/-

Tk. 2,20,000/-

Tk. 2,000/-

(Source: IFIC Bank Limited, North brook hall road Branch)


2.10 Saving Insurance Scheme (SIS)

This IFIC scheme gives family protection against the insecurities of the customers. It combines the benefits of regular savings and insurance scheme. So, they get the usual rate of interest on the deposited amount while they enjoy the protection of a comprehensive insurance covers.

2.11 Non-government Organization (NGO)

The account opening procedure is same but in exception is that the Registration Certificate from the Social Welfare Department of Government must be enclosed with the application.

2.12   Joint Account in The Name of Minor

A minor cannot open an account in his own name due to the incapacity to enter into a contract. He can open an account in IFIC Bank in Joint name of another person who will be guardian of him.

2.13   Issuing Cheque Books

The following procedures maintained of a cheque book:

Ø  At first the customers will fill up requisition form.



written on the cover page of cheque book and its requisition slip.


against the particular cheque book series.


and requisition slip.


on the requisition slip and the register book.

A cover file containing the requisition slip shall be effectively preserved as voucher. If the ledger keeper notices any defect, he will make a remark to that on the requisition slip and forwarding it to the cancellation officer to decide whether a new cheque book should be issued or not.

2.14   Procedure of account closing

A customer may close his/her account any time by submitting an application to the branch.

The customer should be asked to draw the final cheek for the amount standing to the credit of his/ her account less the amount of closing another incidental charge and surrender the unused cheques levels. The account should be debited for the account closing charge etc. and the authorized officer of the bank should destroy unused cheque levels. In case of joint account the application for closing the account should be signed by the joint account holders. The fee for closing an account is Tk-25/-for SB A/C and Tk-50/-for CD or STD A/C.

2.15 Dispatch Section

Dispatch division mainly operates the limitation of dispatching the intimidation latter to the client, Inter Bank Credit Advice (1BCA), Inter Bank David Advice (IBDA), out ward Bill Collection (OBC) to the other banks for internal transaction with the bank.

Beside dispatch branches, another bank, negating bank (in case of Import), and opening bank  (in case of Export) in the name of IFIC Bank Limited, Banshal branch. The officer engaged in the dispatch devotion maintains two types of register books to keep entries of those documents particulars.

These two types of books are:

1.   Inward mail

2.   Outward mail

Outward mail is also such types 1-By hand

Local courier

Overseas courier

When the officer receives papers from outside the branch, it is required to give a dispatch no, on the paper. The officer put number on that paper and on the basis of nature of document he takes decision how it has to be dispatched. Some time he gives the document by hand to other party. At the beginning of the month, he withdraws. Money from bank, by issuing a debit voucher for the payment of dissipating hills. He writes all the expansion of dissipating in the register and payment. At the end of the month, he calculates his total expenses; he refunds it to the bank by creating a credit voucher.


All physical movement of cash in the bank is made through the cash department. Normally cash department performs following functions

Ø  Receipt

Ø  Payments

Ø  Act according to any standing instructions

Ø  Transfer of funds from one account to another

Ø  Handling of ATM

Ø  Verification of signatures

Ø  Posting

2.17 Cash receipt section

In this section the cashier in following manner receives cash:





2.18 Cash payment section

In this section honoring the cheque through following process makes payment.






2.19 Cash Section Activities

Cash section of any bank plays a vital role in general banking procedure. Because it deals with the most liquid assets. There is several counters work simultaneously in cash section of IFIC Bank Ltd. Bangsal branch. There are also some electronic counting machines by which a huge amount of cash money can be counted within a few minutes.

·    Cash Packing

After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamped with initial.

·   Allocation of Currency

Before starting the Banking hour all tellers give requisition of money through "Teller cash proof sheet". The head Teller writes the number of the packet denomination wise in "Reserve sheet" at the end of the day; all the notes remained are recorded in the sheet.

·   Cash Receiving Process

The work of cash receiving counter is examining deposit slips. Depositor uses the prescribed deposit slip supplied by the bank for deposit cash, cheque, draft, pay order etc. in all types of deposits the teller must check the following things:

· The slip has been properly filled up.

· The title of the account and its number.

· The amount in figure and in words is same.

· Instrument signed by the depositor.

· Date of the instrument.

·   Cash Receiving Seal

The main components on the cash receiving seal are

Ø  Name of the bank.

Ø  Name of the branch.

Ø  Date

Ø  Cash Received.

·   Cash Payment Process

In order to safe guard the position the playing banker has to observe the following precaution before honoring a cheque.

Ø  A cheque must be looked whether it is an opened or closed cheque.

Ø  The playing officer should see whether the cheque is drawn on his/her branch.


dated cheque.


materially altered then the officer must not honor it.


specimen cards.

· The officer must verify the regularity of the endors4ement.



·   Passing the Cheque

After verifying the above-mentioned things the officer passes it to computer section for more verification. After that it is passed to \the cash to make payment. By putting pay cash seal the cash officer make it clean to pay. The cash officer gives the cash amount to the holder and record in the paid register.

Dishonor of cheque: A banker can dishonor a cheque in the following situations:

· Insufficient fund.

· Payment stopped by drawer.

· Alternation require in drawer signature.

· Effect not cleaning the cheque.

· Fill cover not received.

· Payees’ endorsement irregular/illegible/required.

· Drawer's signature differs/required

· Clearing stamp required/requires cancellation

· Addition to Bank's discharge should be authenticated

· Cheques crossed" Account Payee Only

· Cheques are post dated/ out of date/mutilated

· Collecting Bank's discharge irregular/required.


·   Types of notes

o Non-issue Notes: Non-issue notes are t5he notes that are obsolescence or banned in our country and that not being taken by the client.



The word clearing has been derived from the word “Clear” and is defined as “ a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House At specified time” in an efficient way”.

1. Since clearing does not involve any cash etc. and all the transaction take place through book entries, the number of transaction can be unlimited.

2. No cash is needed as such the risk of robbery, embezzlements and pilferage is totally eliminated.

3. As major payments are made through clearing, the banks came manage cash payments at the counters with a minimum amount of cash in vaults.

4. A lot of time, cost and labor are saved.

5. Since it provides an extra service to the customer of banks without any service charges or costs, more and more people are inclined and attracted towards banking.


It is a place where representatives of all banks sit together and interchange their claims against each other with the help of controlling staff of Bangladesh Bank And where there is no branch of Bangladesh Bank the designated branch of Sonali Bank Ltd. act as controlling member instead of Bangladesh Bank.



· It ceases to be a scheduled Bank.

· It is not able to meet its liabilities.

· Bangladesh Bank or Central Govt. prohibits it to receive fresh deposits.



Timing 🙁 Sunday through Thursday)

i. 1st Clearing at 10:00 a.m.

ii. 2nd Clearing at 2.30 p.m.


The following points are to be taken into consideration while an instrument is accepted at the counter to be presented in outward clearing:

· The name of the branch appears on its face where it is drawn.

· It should be stale or post dated or without date.

· Amount in words and figures does not differ.

· Signature of the drawer appears on the face of the instrument.

· Instrument is not mutilated.

· There should be no material alteration, if so, it should be properly authenticated.

· If order instrument suitably indorsed and the last endorsee’s account being credited.

· Endorsement is in accordance with the crossing if any.

· The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil.

· The title of the account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque).

If an instrument is in order than our bank special crossing stamp is affixed across the face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on counterfoil and paying-in-slip). The instrument is suitably discharged, where a bearer cheque does not require any discharge and also an instrument in favor a bank not need be discharged. The instrument along with pay-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken:

1. The particulars of the instrument and the pay-in-slip or credit voucher are entered in the outward clearing register.

2. Serial no. Is given to each voucher.

3. The register is balanced; the credit vouchers are balanced from the instruments and are released to the respective departments against acknowledgement in the register.

4. The instruments are arranged bank wise.

5. The schedules are prepared in triplicate, two copies which are attached with the relevant instrument and the third is kept as office copy.

6. The house page is prepared from schedules in triplicate.

7. The schedules and house pages are signed by the house in charge with branch stamp.

8. The grand total of the house page is taken and agreed with that of the outward clearing register.

9. The instrument along with duplicate schedule and house page are sent to the main office.

However the amount is kept in float till final status of various instruments is known from respective paying banks in second dealing.

The entry of the instrument returned unpaid is made in Cheques returned Register. If the instrument is not to be presented again in clearing then a covering memo is prepared. The covering memo along with returned instrument and objection memo is sent to the customer who sent the same to his account.


1. The particulars of the instruments are compared with the list.

2. The instruments are detached and sort out department wise.

3. The entry is made in the inward clearing register (serial no. Instrument no. Account no. Is written).

4. The instruments are sent to the respective departments

5. The instruments are scrutinized in each respect before honoring the same.


These are the cheque returned unpaid by us in inward clearing. due to some objections.


These are the cheques retained unpaid to us which were lodged by us in Outward Clearing.


Suppose all cheques received in the inward clearing are passed and later on it is found that a cheque should have been returned, in such cases, we contact the collecting branch and request them not to make payment against the proceeds of the cheque which was not returned unpaid by us in due time. the cheque with objection memo along with a covering letter is sent to the collecting branch, making request to issue a payment order in favor to balance the Cash-cum-day book we may debit suspense account sundry debtors with the approval of the manager. When the payment order is received, it is lodged in clearing and suspense account, sundry debtors is adjusted accordingly.


In addition to the normal clearing function at Clearing house it is mutually agreed to hold an extra clearing at the clearing house on the particular day and time which is known as “special clearing” it is arranged due to the rush of work arising out of say, more Holidays declared by the Central Govt. at a time, but normally special clearing is held on last working day of our half yearly and yearly closing i.e. 30th June and 31st Dec. every year.


Online banking means that the customer of IFIC can deposit / withdraw funds in / from other branches of IFIC. IFIC bank provides online facility to all its branches.

Table 3.6 ONLINE Charge in Different Transaction

S.I. NO.

Transacted Amount

(Cash deposit and cash withdrawal)

Rate of charges


Same clearing zone



Up to 50000 (Inter clearing zone)



50001-200000(Inter clearing zone)



200001-400000(Inter clearing zone)



400001-600000(Inter clearing zone)



600001-1000000(Inter clearing zone)



1000001-1500000(Inter clearing zone)



1500001-2000000(Inter clearing zone)



Above 2000000(Inter clearing zone)


S.I. NO.

Transacted Amount

(Fund Transfer)

Rate of charges


Same clearing zone



Up to 50000(Inter clearing zone)



50001-250000(Inter clearing zone)



250001-500000(Inter clearing zone)



500001-1000000(Inter clearing zone)



1000001-1500000(Inter clearing zone)



1500001-2000000(Inter clearing zone)



Above 2000000


(Source: IFIC Bank Limited, Bangshal Branch)


IFIC bank offers facility of lockers to its customers.

There are three sizes of lockers available:

Table 3.7 Lockers Charge


Size of lockers

Charges of locker


TK.3500 Yearly


TK.2700 Yearly


TK.2000 Yearly

(Source: IFIC Bank Limited, Bangshal Branch)

2.28 Remittance Section:

Local carrying cash money is trouble and risky, that’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittance of funds is one of the most important aspects of the commercial Bank in rendering services to its customers.

Remittance means transfer of money from one place to another. It is one of the safest ways to transfer money from one place to another. National Bank Ltd. has 91 brunches so they have strong network through whole country and they can easily remit money most of the districts with in the country.

For transferring money National bank ltd offers different instruments such as:

· Telegraphic transfer(TT)

· Pay order (PO)

· Demand draft (DD)

· Pay slip

2.29 Type of remittance:




Pay Order

Demand Draft



Pay order gives the payee the right to claim payment from the issuing bank

Demand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand.

Issuing branch requests another branch to pay specified money to specific payee on demand by Telegraphy Telephone

Payment from

Payment from Issuing branch

Payment from ordered branch

Payment from ordered branch

Generally used to remit fund

Within the clearinghouse area of issuing branch

Outside the clearinghouse area of issuing branch payee can also be the purchaser.

Anywhere in the country

Payment process of the paying bank

Payment is made through clearing

  1. Confirm that the DD is not forged one.
  2. Confirm with sent advice
  3. Cheek the “Test code”
  4. make payment
  1. Confirm issuing branch
  2. Confirm payee AIC.
  3. Confirm amount
  4. Make payment
  5. Receive advice


Only Commission

Commission + telex charge

Commission + telephone

(Source: IFIC Bank Limited, Bangshal Branch)

2.30 Pay Order (PO):

Pay order is an order by an issuing branch or bank upon client for made payment of the amount maintained there in that named pay on according to client order. Pay order issued only for local payment.

Commission: For issuing pay order client should pay 50 taka as commission up to 5 laces, Above 5 laces 100 and 15 taka for VAT.

Procedure for cancel pay order: It has been seen that usually pay order cancel in two certain situation which is as follows:-

Situation one: When client issued any pay order in the name of any payee. If payee does not accept the pay order then payee put his seal and signature back side on the pay order then payee returns to the client. The client of the pay order has deposited it on his account after that authorized officer issue one debit and voucher.

Debit voucher: – pay order accounts

Credit voucher: – clients account

If client wants to cancel his pay order before submitted then have to submit as application for deposited that pay order amount to his account. In this client should paid cancellation charges.

Which as follows:

UP to 500 taka charge 10 taka

2.31 Demand draft (DD):

DD incoming

DD outgoing

Requirements for sending DD:

Procedure for sending DD: When client want to transfer money from IFIC, Bangshal branch to NRL, Agrabad branch (suppose) then following ways he should follow

Then client collect cost memo from remittance division, this cost memo work as an evidence in favor of client.

The authorized officer put test code and registers it in the DD payment register book then authorized officer send massage to the Agrabad branch by telephone or telex. This massage contains client account number, test number, amount.

Characteristics of demand draft (DD):

· It is drawn on one branch upon another branch of the same bank

· It payment ca only that whose name mentioned in the pay orders.


· Up to 2500 taka commission 25 taka.

· Above 25000 taka every one thousand carry 1 taka.


2.32 Issue of Demand Drafts


application as well as voucher. The application form should be checked carefully.

· Commission charges are calculated and inserted in the case provided in the form.

· The voucher given to the customer to deposit the cash with the cashier.

· The cashier receives the cash and delivers the voucher to Remittance

· Department against initial in his book.

· Draft is prepared and entered in draft issue Register.


putting on oblique (/) in between. The amount of the protect graphed.

· The draft number is written on the voucher.



initials the counterfoil of the draft and the Register.


second signature.


acknowledgement on the voucher.



application form must tally.

· A memorandum is issued to the customer if he or she desires.

· The Cheques is sent for passing and cancellation.


for issuing draft.

2.33 Accounts Section

This is a very much crucial department for each branch of a commercial bank. Records of all the transactions of every department are kept here as well with other respective branches. Accounting department verifies all financial amounts and contents of transactions. If any discrepancy arises regarding any transaction this department to concerned department.

Tasks of accounting department

Accounting department plays a vital role in commercial banking. In private banking sector Accounting departments of National Bank Limited perform its task properly. The activities of accounts sectors are as follow:


  1. The bank only invests in those sound and viable projects, which have good rate of return.
  2. Bank prefers to advance loan to their account holders.
  3. Loan is given to reliable person only.
  4. No political loan is sanctioned by bank.
  5. Any account holder can apply for running finance or demand finance. The manger appraises the past record of account holder and his credit worthiness. If he finds any thing wrong he can refuse to sanction the amount.
  6. 1.12.5 Oman International Exchange LLC (OIE)

    Oman International Exchange LLC (OIE), a joint venture between IFIC Bank Limited and Oman nationals, was established in 1985 to facilitate remittance by Bangladeshi wage earners in Oman. IFIC Bank holds 25% shares, and the balance 75% is held by the Omani sponsors. The exchange company has a network of 10 branches covering all the major cities/towns of Oman. The operations of the branches are fully computerized having online system. The affairs and business of the company is run and managed by the Bank under a Management Contract.



      Table 2.1: Credit rating on IFIC Bank Limited



    Long Term

    Short Term

    Surveillance Rating 2008


    ST – 2

    Entity Rating – 2007


    ST – 3



    Date of Rating

    June 29, 2009

    (Source: IFIC Bank Limited, North brook hall road Branch)

    Credit Rating Information and Services Limited (CRISL) has assigned A (pronounced as single A) rating in the long term and ST – 2 in the short term to International Finance Investment and Commerce (IFIC) Bank Limited for the year 2008. The above rating has been given in consideration of the Bank's good fundamentals such as good capital adequacy, good financial performance, sound liquidity position, increasing trend in market share and decreasing trend in NPL. However, the above has been constrained, to some extent, by high loan deposit ratio, decline in internal capital generation ratio and dependence on term deposits. Bank/ Financial Institutions rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in the higher categories. The short term rating indicates high certainty of timely payment. Liquidity factors are strong supported by good fundamentals and the risk factors are very small.

    Credit Rating Information and Services Limited (CRISL) also viewed the bank with "stable outlook" on the basis of its consistent increase in operational efficiency.

    “Your Satisfaction is First” Slogan

    Like any other country of the world, the people living in the urban areas of our country lead a very busy life. Time is very valuable to them. Despite this, they are to waste their valuable time at the counter of different Banks and other Institutions for payment of their monthly bills of different utility services like Electricity, Telephone, Water, Gas etc. They, as such, face enormous difficulties for payment of their monthly bills in time. Such inconveniences of the urban people can be removed by making an arrangement to collect all the bills of various utility services at One Point.

    With this end in view, IFIC Bank Limited has introduced a slogan entitled “YOUR SATISFACTION IS FIRST”. The slogan is designed to provide all the required services to the customer in making payment of their various bills on their behalf from the counter of the Bank irrespective of location.

    1.14.3 IFIC Line- (Any Branch Banking)

    Online Branch Banking The Bank has set up a Wide Area Network (WAN) across the country to provide online branch banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. 

    Any amount can be deposited or transferred under IFIC Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

    Information and Communication Technology

    Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance. IFIC Bank manages its business in a responsible way and contributes to the society and environment in which it operates.

    • Vocational training program for migrant workers
    • Education for life program
    • IFIC school/orphanage
    • Education program for tokai/street children
    • Medical training for midwives
    • IFIC health care centre
    • Eye camp
    • And other related programs.
      • Record all the transaction in the cashbook.
      • Record all the transaction in general land subsidiary ledger.
      • Prepare daily fund functions, weekly position, periodic statements of affairs etc.
      • Periodic necessary statements for reporting purpose.
      • Pay all expenditure on behalf of the branch.
      • Make salary statement and pay salary.
      • Branch to Branch fund remittance and support for accounting treatment.
      • Budgeting for branch.
      • Make charges for different types of duties.
      • Checking of transaction list.
      • Recording of the vouchers in the voucher register.

    Human Resource Development:

    Human Resources Development (HRD) activities aim at fulfilling the Bank's Mission. One of our four major missions of IFIC is to: "Provide service to their clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make their position unique in giving quality service to all institutions and individuals that they care for."

    Skilled and dedicated workforce with creative talents, innovative actions are not always readily available. Appreciating the scarcity of such manpower, the Bank /Tom the very beginning laid importance to HRD that conceptually includes activities like: pre-recruitment drill, recruitment, induction training in the Academy, job rotation, placement and posting, reward and promotion. All these activities are planned by the Bank in an integrated way aiming at manpower with required technical, managerial, human and conceptual skills.

    Management of IFIC Bank not only appreciates the need of skills required for day to day banking but also realizes the need for skills to meet the global and national financial and economic environments that are changing fast. Meeting the needs of new skills arising out of Financial Sector Reforms Programme (FSRP) is also a major concern of the management.


    At the very beginning, the Bank laid a foundation by setting up an Academy at Head Office under Human Resource Development Division to develop human resource internally. Equipped with a professional library, modem training aids, professional faculty and other facilities, the Academy of the Bank is a leading one among the Banks in private sector.

    The Academy regularly conducts foundation courses, specialized courses and seminars in different areas of banking to take care of the professional banking needs. In addition, officers are regularly sent to Bangladesh Institute of Bank Management (BI8M) and Bangladesh Bank Training Academy for professional training. Sending officers abroad for higher training is a regular feature. A Research Department also works in aid of HRD and other operational areas.

    Academy Objectives

    IFIC Bank Academy, established in 1983 as an in-house training institution, takes care of the training need of the employees of the Bank. The objectives of the Academy are to:

    ? Make available skilled and dedicated workforce within shortest possible time by

    Reducing time required for on-the-job training.

    ? To develop understanding about law and practice of banking through foundation training;

    ?Develop understanding about human/conceptual skill and organizational culture

    ? impart managerial skills to groom future Executives and to keep existing Executives up-

    To-date with national and international environment.

    Types of Programs

    For fresher, Foundation Courses on elementary knowledge of banking are organized. Specialized Courses on the areas like Credit, Foreign Exchange, Accounts, Inspection, and Marketing etc. are meant for officials working in those areas. Senior level courses are run on specific knowledge area. Certain courses are a blend of different knowledge areas.

    Approaches to Teaching

    The Academy holds need-based training courses/workshops/seminars etc. which are finalized by HRD Division in consultation with various departments and senior Executives at Head Office. Training inputs are constantly reviewed/modified for achieving the Bank's objectives. Methods in training include: discussion lecture/workshop/case study/games/role play/ film show/simulation/group work & presentation/project visit and so on.

    On-The-Job Training

    Foundation courses have to parts:

    ? Theoretical training in the academy and

    ? Job rotation.

    The officers on probation are required to under go both in a period if one year. During this period three –phased training is provided. On the theoretical training in, say, General Banking the officers required to under go under go rotation in General Banking Activities under the supervision of the HRDD. Similar process is followed in case of Credit and foreign Exchange.

    Products and services:

    IFIC bank is providing a wide range of financial services offering specialist advice and products to corporate clients to meet diverse demands of changing market scenario. We have expertise to customize products and services to meet specific requirements of our clients. We are committed to serve our customer with extensive branch network all over the country to expedite our clients business growth. We facilitate your business to face the challenges and realize opportunities, now and in the future. Our main focus is relationship based banking and understanding corporate and institutional business environments.

    Our experienced Relationship Manager and there team can respond to anticipate your needs and give you competitive business advantages. Products and services for commercial and business customers include, working capital finance, project finance, term finance, trade finance , lease finance, syndicated loan etc.

    Deposits, Loans and Advances:



    2.0 Introduction

    The general banking development does the most important and basic work of the banks. All other developments are linked with this department. It also plays a vital in deposit mobilization of the branch. IFIC Bank Ltd. provides different types of accounts, locker facilities and special type of saving scheme under General Banking- For proper functioning and excellent customer service this department is divided in to various namely as follows:

    · Accounts opening section

    · Dispatch section

    · Cash section

    · Bills and clearing section

    · Remittance section

    · Accounts section

    2.1 Account Opening Section:

    Account opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationship. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account.

    Table 3.1: Various rules and regulations for opening an account.


    The account should be properly introduced by any one of the following:

      An existing Current Account holder of the Bank

      Officials of the Bank not below the rank of an Assistant officer.

      A respectable person of the locality well known to the manager / sub- Manager of the Branch concerned


    Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened.


    • The form is filled up by the applicant himself/herself.
    • Two copies of passport size photographs from individual are taken; in case of firms photographs of all partners are taken.
    • Applicants must submit required documents
    • Application must sign specimen signature sheet and give mandate
    • Introducer’s signature and accounts number- verified by legal officer.

    Step 4

    Authorized Officer accepts the application.

    Step 5

    Minimum balance is deposited – only cash is accepted.


    ·    Know your customer

    The objective of knowing a customer is to have a fair idea about the identity, financial resources, and general information about the customer at the time when the relationship is established. A banker must have following information about the customer:

    ·   Customer name:

    Enter complete name as mentioned in original ID card /other business documents.

    Nature of business /profession: if customer is of salaried class enter his employer name. If the customer is a businessman, trader, sole proprietor, enters the business name, for example “Jamil Traders” etc.also enters the customer’s title/position and address of the business/employer. Address with P.O.BOX is not acceptable. Similarly remarks like

      “Private service”, “business” are not acceptable, rather specify what type of company/business the customer is associated with for example Manager Philips Electrical Company.

    ·    Address:

    Enter the complete business/residential address. With in the brackets you may also provide prominent address identification marks for ease of physically locating the address.

    ·    Contact Numbers:

    Enter home, official, mobile, fax number and e-mail address (if available). Banker can verify the number by giving the customer a courtesy call or by sending him a e-mail.

    ·   Other/ secondary/ mailing address:

    Some customer may volunteer their parents or siblings’ addressor second home address or a mailing address other than a permanent address.

    • 2.2 Different types of account
    • Ø  The levels of the cheque book under issue shall be counted to ensure that all the levels

    • and the bank requisition slip are intact and name and the account number shall be

    • Ø  The name and account number of the customer shall be entered in the cheque register

    • Ø  Then the officer in charge of the deposit department signs the register, cheque book

    • Ø  Then the cheque book is handed over to the customer after taking acknowledgement

    • Ø  He must see if the cheque is post dated or pre dated. A letter must not pay any post­

    • Ø  The officer must carefully see the apparent tenor of the cheque. If it is mutilated or

    • · The officer must compare the signature of the cheque with the signature on the

    • · The officer may allow overdue against a cheque if prior arrangement is done with the

    • Issue Note: Issue notes are the notes, which the client take or receive without any objection.
    • Torn Note: Torn note are the note that are being separated by dividing three parts.
    • Solid Notes: Solid notes mean the types of notes whose written part is being ambiguous by some only thing.
    • Each bank will send competent representative to exchange the cheques.
    • Each bank is required to insure that all cheques and other negotiable instruments are properly stamped and suitably discharged
    • An objection memo must accompany each and every cheque when return unpaid duly initialed.
    • Each bank is required to maintain sufficient funds in the principal account with SBP to meet the payment obligations.
    • The Bangladesh Bank debit the account of each member of the clearinghouse with the proportionate working expenses incurred on the operation of clearing house. These expenses are very nominal.
    • Between bank and non banks customer.
    • Between bank in the same country.
    • Between banks in the different centers.
    • Between bank and central bank in the same country.
    • Between central bank of different customers.
    • Above 500 taka charge 25 taka
    • At first collect DD form from remittance division
    • Deposit money in cash department which he mentioned in DD form.
    • Client should have account in National at Motijheel branch and sending place Client Should paid commission, VAT.
    • · The customer is asked to complete filling in a form that is treated as an

    • · Branch-wise serial number is given on the draft besides the printed number

    • · Draft block and the voucher along with the register are sent to the officer in

    • charge for checking and signatures. He signs the draft and voucher and

    • · Then the draft and the voucher are sent to the Manager/ Second Officer for

    • · The draft is crossed if customers desires and delivered to him against his

    • · If Cheques tender the amount, the drawer to and the purchaser of the draft

    • should be the same person, i.e. the signature on the Cheques and on the

    • · After the Cheques is passed, similar procedure as explained above is adopted

  7. <p style="ANALYSIS PART

    3.1 SWOT Analysis

    Every organization is composed of some internal strengths and weaknesses and also has some external opportunities and threats in its whole life cycle. The following will briefly introduce the customer to the IFIC Bank internal strengths and weaknesses, and external opportunities and threats as I have explored in the past ten weeks.

    3.1.1 Strengths

    · Customized Solution:

    The management of the bank believes in customer focused banking rather than the product oriented banking. The products and services designed by the bank are specifically tailored to the individual needs of its customers.

    · Superior Quality:

     IFIC Bank provides its customers excellent quality of service. It gives the first priority to customer satisfaction.


    · Ethical Concerns and Pubic Image:

    The organizations showing concern for the people, ethics, and environment enjoy good public reputation and are able to reap the benefits in the long run. IFIC management is quite sensitive to this issue.

    · Dynamism:

    IFIC Bank draws its strength from the adaptability and dynamism it possesses. It has quickly adapted to world class standard in terms of banking services. IFIC Bank has also adapted state of the art technology to connect with the world for better communication to integrate facilities.

    · Financial Strength:

    IFIC Bank is a finally sound company backed by the huge resource. As result customers feel comfortable in dealing with the company.

    · Efficient Management:

    All the levels of the management of IFIC Bank are solely directed to maintain a culture of the betterment of the quality of the service and development of a corporate brand image in the market through organization wide term approach and open communication system.

    · State of the Art Technology:

    IFIC Bank utilizes state-of-the-art technology to ensure consistent quality and operation. The corporate office is equipped with SWIFT (SWIFT is a banking software, used by IFIC Bank). All other branches are also equipped with SWIFT system.

    · Experts:

    The key contributing factor behind the success of the IFIC Bank is its employee, who is highly trained and most competent in their own field. Bank Asia provides their employees training both in-house and outside job.

    · In-House Utility:

    IFIC Bank is free from dependence on ever disruptive power supply of our public sources. The company generates the required power through generator fed on diesel. Water generation is done by deep tube wells on site and in abundance


    · Excellent Working Environment:

    IFIC Bank provides its workforce an excellent place to work in. Total complex has been centrally air conditioned. The interior decoration was done exquisitely with choice of soothing colors and blend of artistic that is comparable to any overseas bank.

    3.1.2. Weaknesses

    · Limited Workforce:

    IFIC Bank has limited human resources compared to its financial activities. There are not many people to perform most of the tasks. As a result many of the employees are burdened with extra workloads and work late hours with out any overtime facilities. This might cause high employee turnover that will prove to be too costly to avoid.

    · Manual Book-keeping:

    Although the bank has computerized accounting system but, still the bankers use to make their entries in the accounting register.

    · Problem in Delivery:

    Few of the IFIC Bank products offered to its clients like “Personal Credit (PC)” is lying idle due to proper marketing initiative from the management. These products can easily be made available in attractive ways to increases its client base as well as its deposit status.

    3.1.3. Opportunities

    · Government Support:

    Government of Bangladesh has rendered its full support to the banking sector for a sound financial status of the country, as it has become one of the vital sources of employment in the country now. Such government concern will facilitate and support the long-term vision of IFIC Bank.

    · Evaluation of E-Banking:

    Emergence of e-banking will open more scope for Bank Asia to reach the clients not only in Bangladesh but also in the global banking arena. Although the bank has already entered the world of e-banking but yet to provide full electronic banking facilities to its customer. A proper blend of Banking and information technology might give the bank leverage to its competitors. Nevertheless there are ample opportunities for IFIC Bank to go for product innovation in line with the modern day need. The bank has yet to develop credit card facility, lease financing and merchant banking.

    3.1.4. Threats

    · Merger and Acquisition:

    The worldwide trend of merging and acquisition in financial institution is causing concentration. The industry and competitors are increasing in power their respective areas.

    · Poor Telecommunication Infrastructure:

    As previously mentioned, the world is advancing e-technology very rapidly. Though IFIC Bank has taken effort to join the stream of information technology, it is not possible to complete the mission due to poor technology and infrastructure of our country.


    · Frequent Currency Devaluation:

    Frequent devaluation of Taka exchange rate fluctuations and particularly South-East Asian currency crisis adversely affects the business globally.

    ·   High Employers Turnover:

    As discussed above, the job satisfaction level of the employee is very low resulting in high turnover, which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments.

    · Emergence of Competitors:

    Due to high customer demand, more and more financial institutions are being introduced in the country. There are already 52 banks of various types are operating in the country. Many banks are entering the market with new and lucrative products. The market for banking industry is now a buyer dominated market. Unless IFIC Bank can come up with attractive financial products in the market, it will have to face steep competition in the days to come.



    4.1 FINDINGS

    IFIC Bank limited as a new generation commercial bank has facing a lot of problems in comparison to other banks. These problems are related to operation of daily banking activities, opening new branches, Bangladesh Banks rules and regulations, customer services, customer behavior, maintenance of liquid assets, lack of experienced personnel etc. The major findings and limitations faced by the bank are recorded as follows:

    ·  In opening A/C some additional documents are required by the bank for record. Only this is very difficult for the customer to understand sometimes and discourages the average person to create accounts in IFIC Bank Ltd.

    ·  Most of the bankers are not very expert and well-known in modern technology.

    ·   According to central bank order every bank has to provide MICR cheque book to account holder that will be used specially for “Account Payee” but to get this cheque book it requires at least fifteen days that delay customer transactions.

    ·   When a client wants to open an A/C s/he must need an introducer, sometime it creates problems for the clients.

    ·   Theoretically any person can purchase pay order, demand draft and telex transfer by depositing money and commission. But the person who wants to purchase these should have account in the bank branch. These will discourage customers to transact with bank.

    ·   There is a rule to deposit at least an amount of money in case of opening an account. But it is not strictly followed. Sometimes more money is asked from a new customer who discourages him to open an account in the bank.

    ·   The products and services provided by IFIC Bank Ltd are not sufficient in comparison to other banks so that the bank is lagging behind in competition.

    ·   Banks are heavily regulated by the central bank of Bangladesh but due to lack of knowledge or experience of the employees the rules are not always maintained strictly.

    ·   All customers are not concerned about the latest technology based services and all are not readily interested to accept the technology-based services.


    From the very of civilization of time Banking activities is a critical job and the present days banking business is very competitive and complex. Banking sector, as a service sector of Bangladesh continues to contribution to a great deal in the economy of Bangladesh.

    International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. IFIC BANK LTD. is marching in an aggressive way to reach the all levels of clients and customers, which ensure certain, and mentioning position in the market.

    This report is being done on the subject of “General Banking Activities” A study on IFIC Bank Limited, on Bangshal Branch.” From the survey and observation of the study I try to gain some practical experience on critical general banking system and some practical knowledge on account opening, cash receipt and payment, sanctioning of loan and advances, foreign trade and foreign exchange mechanism, local and foreign remittances, complex clearing process etc. I think this experience will set me in the advantageous position in future.


    As a new generation commercial bank yet IFIC BANK LTD. facing to some serious problems but it is also true that these problems may be turn into opportunity if the authority takes some initiatives. The initiatives may be as follows:

    • Multipurpose new schemes should be introduced to attract the clients and to enhance the deposit.
    • Account opening process should be made easy to attract the customer.
    • Political and organizational pressure should be eliminated in case of transaction.
    • Bank should regularly review and update the present marketing strategy.
    • The working condition should be improved. Employees must be provided with adequate working equipment in order to provide better customer service.
    • IFIC Bank Ltd. Bangshal branch should provide MICR cheque book to all clients as soon as possible to get customer satisfaction. 
    • IFIC Bank Ltd. should recruit experienced personnel from other banks and financial institutions in order to provide better and efficient banking services and ensuring growth.
    • New branches should be opened in the economically promising area.
    • Modern banking Technology should be arranged in all sector for providing better services.
    • Bankers Customer relation should be closer and regular communication with the customer should be maintained.
    • Bank should be arranged proper idea about modern technology to all service holders.

    Prospectus/ Annual Report

    Prospectus of IFIC Bank Ltd (2009&2010)

    Prudential Regulations for Small Enterprises Financing (2009&2010)

    Annual Report (2008), IFIC Bank Ltd, Dhaka, Bangladesh

    Annual Report (2009), IFIC Bank Ltd, Dhaka, Bangladesh