General Banking Overview on Jamuna Bank Limited
Bank plays an important role in the business sectors and in the industrialization of a country. Basically the banks take deposits from the customers against interest and lend it to the borrowers against interest for cessation period. Under these circumstances of banks offers different interest rates and other options to the customers to remit and deposit their money. These options are vary common among the entire bank, but only the customer services and other facilities very from bank to bank.
In Bangladesh there are Govt. Banks, semi- Govt. Banks, Private sector commercial banks the third generation private banks in Bangladesh. It started its crucial moment when Bangladesh economy was under going through massive economic reforms and perusing unilateral and multilateral trade liberalization with the backdrop of the World Bank made international monitory fund recommendations As of September 2007, JBL with its twenty three branches of the country is providing the better quality service to the customer.
1.2 Background of the study
Knowledge and learning become perfect when it is associated with theory and practice. Theoretical knowledge gets its perfection with practical application. As our educational system predominantly text based, inclusion practical orientation program, as an academic component is as exception to the norm. As the practice; educational institution and the organization substantially benefit from such a program. It establishes contracts and networking contracts. Contracts may help to get a job. That is students can train and prepared them for the job market. A poor country like Bangladesh has an over whelming number of unemployed educated graduates. As they have no internship experience they have not been able to gain normal professional experience or establish networking system, which is important in getting job. So practical oriented is positive development in professional area recognizing the important of practical experience.
1.3 Objective of the Study
- The general objective of the report is to know about the academy system of Jamuna Bank Limited as a private commercial bank, its functional, operational, and financial aspects.
- To know the background of the organization is another objective. To enhance the knowledge of the readers about banking and finance is also a disguise objective of the report.
Therefore the Objectives behind conducting this study are as follows:
- To gain in-depth knowledge of standard banking services of JBL highlighting the Islamic banking activities of all department.
- To determine the most important attributes of service quality.
- To know the overall banking progress.
- To fulfill the requirement of the Internship Program.
- To appraise deposit mobilization activities of Jamuna Bank Ltd. (To appraise credit activities of Jamuna Bank Ltd. (To measure customer satisfaction level of Jamuna bank Ltd. Besides fulfilling the degree requirement, this project intends to cover a comprehensive analysis of overall activities of Jamuna Bank Ltd.
- To present an overview of Jamuna Bank Ltd. To assess the expectation & satisfaction level of Jamuna Bank’s customers.
- To identify problems and challenges of Jamuna Bank Ltd.
- To recommend remedial measures for the improvement of the activities of Jamuna Bank Ltd.
1.4 Scope of the study
The scope of the organizational part covers the organizational structure, background, objective, function, department and business performance of JBL. The main part covers the operational of customer service, credit, foreign exchange, remittance of Gulshan branch. This refers that how the bank satisfying customers, help the customers in exporting and importing the goods providing loans, and how it remits the money of the foreign clients, etc. all are in the project part of the report.
1.5 Methodology of the report
Methodology includes direct observation, face-to-face discussion with employees of different departments, report of files, circulars and practical work. These have been collected from different sources. Both the primary and the secondary of information were used to prepare this report. The details of these sources are highlighted below:
Source of Data:
This report is based on both primary & secondary source of information. For theoretical development of this research paper the data has been collected from the various sources like different publication, library source, books, articles, etc. For collecting primary data, we had to ask the respective officers. Others are like-Exposure on different desk of the bank.(principal officer of the bank) official document and File study.
Collections of facts are generally treated as data. There are two types of method—
1. Primary Data and.
2. Secondary Data.
Data that are collected though the primary investigation or from secondary sources have been analyzed through statistical tools (such as excel), tables, trends, etc. depending on the nature of data and the requirements. Where possible, the data have been verified from different sources such as from periodicals published by the Bangladesh Bank. At that time of the interview I have found that JBL is offering a full-fledged Islamic banking including foreign exchange services. I have also found that in respect of transactional dealings this branch has a good reputation among other branch of JBL. The banks are also keeping a close eye on relevant development & changes in banking policies, procedures and rules & regulations.
1.6 Source of Data
Both primary and secondary source of information have been collected for the purpose of this report.
Primary sources of information:
- Conversation with the related people to the banking sector.
- Exposure on different desk of the bank.
- Conversation with the clients.
- Direct observation.
- Conversation over telephone.
Secondary sources of information:
- Annual report
- Statement of affairs
- Different pamphlet regarding banking function, foreign exchange operation, credit policies and the circulars of the bank.
- Official Website offer.
1.7 Limitations of the Study
In properly this report have faced some limitations what I can’t ignore, some of those Limitations are:
- Bankers don’t want to disclose all the information I need.
- Load at the work place was also a barrier to prepare this report.
- Although the officers of the Jamuna Bank Limited didn’t have enough time to provide, as they are very busy with their assigned works. Nor co-operation of employees.
- Due to lack of experience, there may have been faults in the report through maximum efforts have been given to avoid any kind of mistake.
- The report was conducted only within the customers of Gulshan branch.
- Relevant data and document collection were difficult due to the organization confidentiality.
- Another limitation was that data gathered could not be verified for accuracy.
- Finally the length of this internship program (12 Weeks) is not sufficient conduct time limitation on the subject of report.
Profile of JamunaBank Ltd.
2.1 Profile Jamuna Bank Limited:
Jamuna Bank Limited (JBL) is Banking Company registered under bank Act 1991 and the Companies Act, 1994 with its Head Office at Printers Building (2nd & 8th Floor), 5, Raja Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. Currently the Bank has 35 (Thirty Five) branches 14 in Dhaka, 6 in Chittagong, 2 in Gazipur, 3 in Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in Shirajganj, 1 in Rajshahi and 1 in Narayanganj (including Nine Rural Branches).
Jamuna bank limited is a fast growing private sector bank in Bangladesh. This is a third generation private commercial bank. It has created a new horizon of its own in the banking area of Bangladesh in terms of service to the customers. The bank has expanded and consolidated its customer base in both of its core businesses and retail banking. The Bank undertakes all types of banking transactions to support the development of trade and commerce in the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units.
To provide clientele services in respect of international trade it has established wide correspondent banking relationship with local and foreign banks covering major trade and financial centers at home and abroad.
2.2 Vision of JBL:
To become a leading banking institution and to play a pivotal role in the development of the country and services.
2.3 Mission of JBL:
The bank committed to satisfying diverse needs of its customers though an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work- force.
2.4 Corporate Slogan:
“Your Partner for growth”.
The sponsors of Jamuna Bank Limited are reputed personalities, leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialist and businessmen having wide business reputation both at home and abroad.
The Management of Jamuna bank Ltd is headed and leaded by the renowned banking personality Mr. Md. Habibur Rahman who is the only person of the country having experience in working as managing director of five different banks. Sonali Bank, Janata Bank, Bangladesh Krishi Bank, Investment Corporation of Bangladesh and Bangladesh Shilpa Rin Sangstha (BSRS). A team of experienced professional is efficiently managing the Bank.
2.7 Objective of JBL:
- To develop and retain a quality work force thought an effective Human Resources Management System.
- To ensure optimum utilization of all available resources.
- To pursue an effective system of management by ensuring compliance to ethical norms, transparence and accountability in all levels.
- To earn and maintain CAMEL Rating ‘Strong’.
- To establish relationship banking and improve service quality thought development of Strategic Marketing Plans.
- To remain one of the best bank in Bangladesh in terms of profitability and asset quality.
- To introduce fully automated systems thought integration of information technology.
- To ensure an adequate rate of return on investment.
- To keep risk position at an acceptable range (including any off balance sheet risk).
- To maintain adequate liquidity to meet maturing obligations and commitments.
- To cultivate a working environment that foster positive motivation for improved performance.
- To diversity portfolio both in the retail and wholesale market.
- To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.
- To raise capital up to Tk 1000.00 million by 2006.
- To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund.
- To strive for customer satisfaction thought quality control and delivery of timely services.
- To identify customers credit and other banking needs and monitor their perception towards our performance in meeting those requirements.
- To review and update policies, procedures and practices to enhance the ability to extend better service to customers.
- To train and develop all employees and provide them adequate the resources so that customers needs can be reasonably addressed.
- To promote organizational effectiveness by openly communicating company plan, policies, practices and procedures to employees in a timely fashion.
2.9 Financial Performance of JBL:
In 2006 Jamuna bank limited registered an operating profit of Tk 419.94 million as against Tk 308.83 million of 2005 recording an excellent growth rate of Tk 35.98 percent in the year. After keeping provision against loans & advance in line with the instruction of Bangladesh Bank BCD Circular No.34 of 1989, BCD circular No 20 of 1994 BCD Circular No.12 of 1996 and BPRD Circular No. 16 of 1998, the profit before tax stood at Tk 363.31 million in 2006 against Tk 273.70 million of 2005 registering a growth rate of 32.74 percent.
2.10 Operating Result:
The operating profit of the bank increase from 40 million to 50 million during the year 2005 compared to the previous year. It shows 28.4% increase.
Jamuna bank Limited commenced its operation on June 03 2001
With an authorized capital of Tk 1600.00 million ordinary shares of Tk 100 each and the bank started operation with a sound capital base of Tk 390.00 million. In 2006 the paid-up capital of the bank stood at Tk 429.00 million of ordinary shares of Tk 100.00 each and the total shareholders equity and reserve stood at Tk 916.46 million. After balance sheet date JBL offered initial public Offering for 4.29 million ordinary shares with a premium of Tk 20.00 each and after that the total paid up capital of JBL stood at Tk 858.00 million and the total shareholders equity and reserve stood at Tk 1530.50 million as on march, 2007.
Loan & Advances:
In Financial Year 2005 after adverse impact of devastating flood and declining trend in interest rate JBL, continued to explore its area of credit and was successful to build up a sizeable quantum of credit, which stood at Tk 11,011.83 million as on 31,12 2006, registered an overall increase by 63.80 percent over 2005.The total credit as on 31st December 2005 was Tk 6722.81 million. In compliance to regulatory requirement and to avoid risk of single industry or large loan concentration and to maintain the Bank’s credit excellence relating to proper risk management, yield, exposure, tenor, collateral security, proper valuation etc. JBL’s credit facilities mainly concentrate on trade finance, agriculture and related sector, project finance, wholesale and retail trading, service sector, transport sector, Hospital & Diagnosis center and syndication financing for large projects, capacity additions in the manufacturing sector and structured finance to develop infrastructure of the country.
The investment portfolio of the Bank as on December 2006 stood at Tk 2037 .84 million, growth rate 75.12 percent over Tk 1163.70 million of December 2005. The investment portfolio comprises Government Treasury Bills of Tk.630.00 million, Treasury Bonds of Tk 875.00 million, prize Bonds, Primary shares, Zero coupon bonds etc. JBL is one of the preference shareholders of After Automobiles Ltd, amounting Tk 50.00 million. The bank also invested in two shares amounting Tk 2.00 of Central Depositary System (CDBL).
The total import business handled by the bank during 2006 was Tk 12151.90 million compared to Tk 7923.90 million in the preceding year registering a growth of 53.36 percent. The Bank was also able to open substantial amount of import L/Cs in 2006. The main items were industrial Raw Materials Machinery, Consumer Goods, Fabrics, Accessories, etc.
The total export business handled by the Bank stood at Tk 6521.80 million in the year 2006 which was Tk 4790.80 million in the year 2005 showing a growth 36.13 percent. Readymade Garments (RMG) sector is the highest foreign exchange earner of the bank and for the country.
Jamuna Bank Ltd has a network of 15 branches in Bangladesh. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credits to the account of beneficiaries instantly or within shortest possible time.
Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies though those banks or may contact any renowned banks nearby (where they reside) to send their money to their dear ones in Bangladesh.
To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka drawing arrangement with exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches of Jamuna Bank Ltd.
Jamuna Bank Limited has recently become a member of SWIFT (society for Worldwide Inter-bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transaction such as letter of credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.
2.12 Corporate Banking:
The motto of JBL’s Corporate Banking service is to provide a personalized solution to our customers. The Jamuna Bank Ltd. identifies and distinguishes corporate customer’s needs and designs tailored solution accordingly for the success of their business.
Jamuna Bank Ltd. offers a complete array of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, Import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our corporate Banking specialists will render high-class service for speedy approvals and efficient processing to satisfy customer needs.
Corporate Banking business envelops a broad range of businesses and industries. You can leverage on our know-how in the following sectors mainly:
- Agro processing industry. Industry (Import Substitute or Export oriented).
- Textile spinning Dyeing or printing.
- Export Oriented Garments, Sweater.
- Food & Allied.
- Paper &paper product.
- Chemical and chemical products etc.
- Information Technology.
- Real Estate & Construction.
- Wholesale trade.
- Hotels, Restaurants.
- Non Bank Financial Institutions.
- Loan Syndication.
- Project Finance.
- Investment Banking.
- Lease Finance.
- Hire purchase.
- International Banking.
- Export Finance.
- Import Finance.
Corporate Culture of Jamuna Bank Limited:
· Employees of JBL share certain common values, which help create a JBL culture.
· The client comes first.
· Search for professional excellence.
· Openness to new ideas and new methods to encourage creativity.
· Quick decision-making.
· Flexibility and prompt response.
· A sense of professional ethics.
Three Themes for Growth:
Introducing Card Network and electronic banking.
Expanding personalized services.
Building strong presence in the market with reputation.
Full on-line banking.
Room services for Corporate Customer and high net worth individuals.
Introducing more innovative products and service.
Opening new branches including Islamic Banking Branches.
Expansion of business network at home and abroad.
Services or products offered.
Deposit taking including special schemes.
Remittance and collection.
Import and export handling and financing.
24 hours banking: Q-cash ATM.
Popular products of JBL:
Monthly Saving Scheme (MSS).
Double/ Triple Benefit Scheme (DBDS/TBDS).
Monthly payable profit scheme (MPPS).
2.13 Future Plan and Prospect:
Being a forward-looking bank, JBL is planning to open new branches. JBL has already undertaken a massive branch expansion program that would allow JBL to establish another 5more branch in key location of the country. The program is now waiting for Bangladesh Bank and approval.
2.14 JBL at a Glance
(In Million Tk)
|2||Paid up Capital||390.00||390.00||390.00||429.00||429.00|
|4||Capital Surplus / (Deficit)||—||255.35||204.30||148.506||115.54|
|7||Total Loans & Advances||333.45||1514.28||3239.51||6722.80||11011.83|
|8||Total Contingent Liabilities||145.93||891.541||1772.76||2903.95||5445.68|
|9||Profit after Tax & Provision||—||.22||61.14||155.95||199.82|
|11||Provision against Classified Loans||—||—||.63||1.04||10.2|
|12||Interest Earning Assets||—||4946.40||8951.22||12559.22||15551.75|
|13||Non- Interest Earning Assets||—||344.19||815.56||932.29||1312.01|
|14||Income from Investment||2.58||15.47||27.37||80.43||126.30|
|15||Credit Deposit Ratio||31.77||48.98||65.50|
|16||% of Classified Loans||—||—||0.02||0.04|
|17||Cost of Deposit||—||9.05||8.94||7.84|
|18||Return on Assets (ROA)||—||0.29||1.14||1.16|
|19||Earning Per Share (EPS)||—||0.06||14.25||36.35|
|20||Net Income Per Share||—||0.06||15.68||36.35|
|21||Price Earning Ratio||N/A||N/A||N/A||N/A|
|22||Return on Investment (ROI)||2.35||4.68||2.93||6.91|
2.15 Present Branches of Jamuna Bank Ltd:
32, mohakhali c/a, Dhaka.
Sonargaon Road Bran
1/G, Sonargaon Road, Kawran Bazar.
Moulvi Bazar Branch
77/3, MoulviBazar, Dhaka.
Gola Bazar Branch
Osmani Nagar, Sylhet.
76-77, Agrabad Chittagong.
33, Dilkhusha Commercial Area.
41/B Chamelibag, Shantinagar, Dhaka.
28, Gulshan North C/A (2nd floor).
North South Road, Dhaka.
Plot-A, 140-141, Gazipur.
Foreign Exchange Branch
2, DIT Avenue, Motijheel.
Jubilee Road Branch
57, Jublee Road, Chittagong.
Chistia Market Branch
393/B Elephant Road
898 (new), Borogola,Bogra.
New: 207 Chashara,
Baligaon Bazar Branch
Proposed Branch Expansion Program:
119/B (old), 119/B/1 (New).
1068/69/70(Old), Arakan Road.
88, Shaheb bazaar, Rampur.
Main road, Noakhali.
2.16 Management hierarchy:
Product & Services
Field in working:
General banking is the most important function of any banking concern and it is known as the heart of any banking concern. It is also known as the day-to-day banking, retail banking, and general banking etc. The overall success of any banking concern largely depends upon the successful performing of the general banking. The general banking procedure includes opening of various accounts and schemes, receipt and payment of cash, remittances, clearing, issuance of loans and advances, credit administration and monitoring and foreign trade and exchange etc.
General Banking means general activities of a bank. It is the most important and preliminary work of a bank. All other activities like investment and foreign exchange are rolled through the general banking. The general banking system of JBL is very dynamic and errorless. The executives and officers are very friendly and supportive to their work. Although JBL is a new branch but their general banking activities are excellent. All the clients are satisfied with their services. They expand their services to reach new customer year by year. In their effort to improve their customer facility they provide different facilities and offered numerous types of general banking facility. They are trying to improve themselves in every year in relation with the other branch of JBL their net profit has increased. So we can say that they are doing with target, which leads them to a higher net profit.
3.2 Components of General Banking:
The JBL offers various types of general banking components. They are very essential tools for the bank to serve the customers. To attract new customers the bank has to launch new components or re-furnished their existing products.
Their components of general banking are as follows:
(a) Account and Schemes.
(b) Receipt and Payment of cash.
(e) Loans and Advances.
(f) Foreign trade.
(g) Credit administration and monitoring.
3.3 Account and Schemes:
Account opening is the first and preliminary work for a bank. Opening of an account binds the customer and banker into a contractual relationship. It is the most important and preliminary work for a bank. Account opening is very important task for any kind of banking activities. Customer relationship establishes through opening an account. Generally who are receiving bank service we may call them as a customer. But bank considers them as customers who have an account with them.
3.3.1 Procedure of Opening of an Account:
Banker’s his to maintain some common principles and procedures for open all most all deposit accounts. Major information is essential for identification of the account holders individually so that banker can discharge his obligations to every one correctly and to the extent due. Following are the formalities a customer must maintain in case of opening of an Account opening requirement:
Minimum age of 18 years.
Application in the prescribed form.
Furnishing Photographs of the applicant and attested by the introducer
Introduction by an account holder.
Recording of specimen signature in the specimen signature card.
Mention nominee in the prescribed form.
Furnishing Photograph of the nominee (1 copies).
3.3.2 Description of Deposit Accounts:
There are several types of deposit accounts. Each account has different characteristics and every account has some specific purpose to serve. According to their uniqueness they are described as follows:
It is the general account of the JBL (Gulshan Branch) individual or more than two persons can open a savings account on JBL. The rules and regulations that must need to fulfill to open a savings account are as follows:
Applicant has to be a Bangladeshi citizen.
Two-passport size furnished photographs attested by the introducer.
Accounts may be opened in the name of illiterate persons after completion of necessary formalities but withdrawals from such accounts should be allowed only on personal appearance.
A suitable introduction is required for opening the account.
Not more than one account should be allowed to open by one person in his or her name at any branch of the bank but this will not prevent parents or guardians for opening more than one account for their children’s who are minors.
Each account will be given a separate account number, which should be quoted while making withdrawal or deposit in the account or any correspondence.
Depositors may deposit money in their account as often as they want.
Banks may accept checks, drafts, payment order, dividend warrants etc. on behalf of the account holder for collection.
Initial deposit for opening an account is Tk 5000 and the account may be closed where the balance falls bellow Tk 500. However, Manager has the discretion to authorize opening account below Tk.5000.
A depositor may withdraw money from his account twice in a week.
Depositor may withdraw his deposit money up to 25% without notice but for withdrawals more than 25%, 7 (seven) days notice is required. In the event of contravention of the rule, the depositor’s will not be given any interest in this account for that month.
If a depositor presently withdraws more than twice a week or a sum exceeding 25% of the balance in his account without notice, the bank realize service charge in its discretion. This will be in additional to forfeiture of interest provided for above.
If a depositor likes to close his account, service charge of Tk.250 will be deducted from the account.
The officers and authorize persons are issuing checkbook, deposit slips and statement of account to the holder of savings. The officer justifies the information that is submitted by the account holder for opening of the account. The officer process account-opening formalities.
Current Deposit Account:
JBL is one of the newly established well-reputed third generation private commercial bank in Bangladesh. It operates very diverse current account operation. They serve various types of customers, like current account for private limited company, current account for public limited company, current account for partnership business, etc. All these accounts are following the under noted rules and regulations of JBL. Rules and regulation for current deposit accounts are as follows:
Current deposit accounts are opened with sums of TK. 5000 in the names of the parties known to the bank or properly introduced.
It is understood that the at credit will not any time be allowed to below 1000, A minimum charge of Tk.100 per year is made on all small operative accounts and on those 3 accounts in which the number of the transaction is out of proportion to the balance of deposit.
All deposit to current account made by local constituent should be accompanied by pay-in-slip and the depositor should satisfy themselves that the depositor are verified by the received and date stamp of the bank and the initials of the bank’s officials.
The bank collects local check, pay order, demand draft, etc. on clearing free of cost and all other collection items at charges to be ascertained on application.
A charge of Tk.100 will be made on all accounts closed within 6 (six) months of their opening.
More than 2 (Two) applicant can open the account.
Account holders can deposit the money at any numbers of items.
There is no restriction of how many times and the amount of money is withdrawn.
For a private or public limited company various types of legal documents might be articles of association, memorandum of association, trade license etc.
To be certified by an introducer who has a current account with the bank.
The account holders have to provide the company seal when it is necessary.
In case of clubs, societies, schools, colleges certified copies of byelaws and regulations must be submitted to the banker.
In case of partnership firm attested photocopy of Partnership Deed must be submitted to the banker.
In case of trust, club up-to-date list of the Members of the Trustee Board.
C. Foreign Currency Account:
The JBL (Gulshan Branch) also operate foreign currency account for Bangladeshi wage earners to send their valued earned foreign currency into the country. The rules and procedures for opening of the foreign currency account are as follows:
Foreign Currency Account (For Bangladeshi Wage Earners):
Two (2) copies of passport size furnished photograph attested by the introducer and one (1) copy photograph of nominee attested by the applicant.
Attested photocopy of the first 7 (seven) pages of the valid passport.
Attested photocopy of employment contract/ appointment letter/ work permit.
If account intended to be opened from abroad Bangladesh Embassy or High Commission shall attest all original papers except the photograph of the nominee which to be attested by the account holder him/herself.
Foreign Currency Account (For Foreign Nationals/Company/Firms):
The required papers and documents are as follows:
Two copies of passport size furnished photographs of the account holder, which should be attested by the introducer. Copies of relevant pages of the passport duly attested by dealing officer for individual and operators of the account holders.
Copy of set-vice contract or appointment letter or work permit, if any for the individual. Copies of registration in Bangladesh with Board of Investment (BOI) or Bangladesh bank foreign joint venture firm.
Copies of memorandum of association, articles of association, byelaws, joint venture agreement for Joint Venture Company. In case of partnership firm, copy of the partnership deed which should be dully attested by the authorized officer.
Short Term Deposit Account (STD):
JBL also offers Short Term Deposit to its valued customers. Short Term Deposit is a deposit account where the payment of interest is paid on month basis. This item includes the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. These types of liabilities are payable on special notice or after a specified period other than the fixed deposits. Some of these types of deposits are of the nature of time deposits. The rate of interest on STD account is 4.5% per annum. There are some rules and regulations that must be maintained by the STD account holder. If the STD account holder wants to withdraw the money from the account they have to inform the bank before, otherwise the account holder may not get the interest in full amount.
|Particulars||Approved Revised Rate|
|Short Term Deposit (STD)||6.50%|
|Savings Deposit: Rural / Urban||7.00%|
|Savings Deposit: Non-Chequing & No withdrawal for 6 (six) months||7.50%|
|Savings Deposit: Non-Chequing & No withdrawal for 1 (one) year||8.00%|
3.3.3 Schemes of Jamuna Bank Ltd.:
Schemes are the most important sources of enhancing banks deposit. Mainly bank is the lender of money, which is deposited by various types of depositor. These schemes are different in nature types and also in interest rates. These deposits give the customers to deposit the idle money in profit earning schemes and also provide the security. Jamuna Bank limited as third generation modern and technology based modern commercial bank offers various types of customer’s friendly deposit schemes to its valued customers. These schemes are highly profit earning to the depositors and also unique in security. The schemes are outlined below:
Fixed Deposit Receipt (FDR):
JBL offers various types of FDR to its client’s. Their maturity may be 1 (One) months, 2 (Two) months, 3 (Three) months, 6 (Six) months, 12 (Twelve) months, etc. In JBL customers can open FDR in individually or jointly for any amount for a fixed period. For opening of FDR no introducing are required. Only one copy of passport size photograph of the account holder and another copy of the nominee is needed. Customers can get the interest after the maturity period of the FDR. They can also encase the FDR before the maturity of the period. They he will not enjoy the regular interest rate on the FDR. The rates of interest are presented in the following table:
|Particulars||Approved Revised Rate|
|FDR for 1(one) month and above||10.50%|
|FDR for 3 (three) month and above||12.25%|
|FDR for 6(six) month and above||12.50%|
|FDR for 12(twelve) month and above||12.50%|
Monthly Savings Scheme (MSS):
JBL has proudly offered Monthly Savings Scheme to its valued customers. There is a special typed form for opening a Monthly Savings Scheme. The duration of this scheme is 5 years. One passport size photograph of the account holder and another copy of the nominee are needed to open this account. There are various types of MSS that is offered by the JBL. The variation depends on the amount and the time of maturity of the MSS. The monthly installment of Tk is 500 to 10000 may be deposited every month during the entire period of the scheme. The depositor will be paid a specific amount on the expiry period as per the following table:
|Period||Installment||Payable at the End|
|5 (Five) Years||500||36,738|
|5 (Five) Years||1000||73,475|
|5 (Five) Years||5000||3,67,375|
|5 (Five) Years||10000||7,34,750|
In this scheme depositor may open one or more account of different installment in the same branch. Loan may be extended to the depositor up to 80% of the deposit amount. The depositor may encase the MSS before the expiry of the maturity of the MSS period In this case the depositor will not enjoy the full amount of interest.
Double Balance Deposit Scheme (DBDS):
Jamuna Bank Limited also offers its valued depositors to enjoying the DDBS. Under this scheme the depositor may deposit any amount multiplied by 10,000 for 7 (Seven) years. The deposited amount will be double with its principals and interest after the expiration of the aforesaid period. It is one of the most popular schemes offered by the Bank.
Monthly Profit Paying Scheme (MPPS):
MPPS is a scheme, which provide the opportunity to the valued depositor to enjoying a specified amount against the deposit a fixed amount for a certain period. If any person makes deposit Tk 1, 00,000 for 1 (one) year, they will get Tk 900 per month for every year. This is the most benefiting scheme for retired official or middle class family. Any person can deposit any amount more than Tk 1, 00,000 at any time for the period more than one year.
3.4 Receipt and Payment of cash:
Among the services provided by the bank, cash receipt and payment is the most vital and physical function. Generally customer comes to bank to withdraw the money from their account and deposit his savings in their accounts.
3.5.1 Cash Deposit:
Money deposited in cash by the constituents at the cash counter of the bank excluding that of government transaction is known as Bank Receipt (Cash). Different types of forms are used for cash deposits for different types of accounts. Particulars of some forms are furnished below:
Ø Current or Savings account pay in slip.
Ø Application for fixed deposit receipt.
Ø Credit voucher.
Ø Draft or mail transfer application form.
Ø T.T. Pay order application form Call deposit application form.
- Demand loan pays in slip.
The depositor will fill up the appropriate form properly. The concerned officer working at the general banking counter will initial the form relating to the new account.
Receiving the cash and voucher at the cash counter; the cash officer will count cash correctly. Then the voucher will be branded “Cash Received” seal. Then the assistant cash officer willing the denomination of the notes and coins in the backside of the voucher. After cash assistant officer will sign the voucher.
The cash officer will check up the voucher and entered the amount in the cash receipt register and put the scroll number. Then the officer will sign the voucher and send to the computer department.
The officer computer department will entry the transaction into the computer and put the posted seal and a tracer number on the voucher.
At the end of the transaction the cash officer will total the cash receipt book and the total figure should be tally with scroll maintained by the officer whose scroll will also be totaled. The physical cash received at the counter must be equal to the total figure of the scroll.
3.5.2 Cash Payments:
Banks payment includes all kinds of payments excluding those of treasury section. Extreme precautions must be taken at all levels through, which instruments like chaque, drafts, etc, are disposed of. All the instruments received at the general banking counter will be preliminary checked by the dealing officer who will enter the instruments in the respective ledger. In case of chaque the following particulars will be scrutinized.
Date (Whether post dated or anti dated).
Amount in word and figure.
Crossed or Open.
Bearer or Order.
Style of signature as available in the ledger.
Prohibitory order or stop payment of checks.
The Cash officer will follow the following procedures at the time of payments of checks and other instruments over the cash counter.
The client will submit the instruments in the computer department first. The computer officer and chaque passing authorized officer will verify the instrument and posted the instruments. Then it will be send to the cash counter.
After getting the instrument the cash officer will verify the instruments and if necessary the cash officer can tell the clients to sign in the backside of the instruments.
Cash officer will record the denomination of notes and coins on the backside of the instruments.
The officer will enter the check in the cash payments register where the denomination of notes and coins will also be recorded.
The cash officer will give the amount to the clients at the cash counter and told the clients to count it immediately and if needed any quarry.
All checks, drafts, debit vouchers etc. must be branded with “Cash Paid” stamp with the current date.
After payment the cash department for the purpose of clean cashbook will send the vouchers.
The head of the cash department is responsible for all debit vouchers being branded with the cash Paid date stamp immediately they are paid and the manager must supervise him/her in this matter as any laxity is extremely dangerous.
3.5.3 Late Payments:
In case of any late payments instruments must be debited in the ledge and passed in the usual manner. It will be entered in the cash paid sheet in the above manner and cashbook under authentication of the manager and the cash officer. It must also be noted with late mark under initial of the manager with date.
Finally all cash receipts and payments will be taken into account to calculate the cash balance of the branch we may take an example to clarify this. But this is to notify that, at the end of the day of the bank the amount of the cashbook and the amount of the computer should be equal. Because currently the whole banking are monitoring centrally.
General Banking Operation of Jamuna Bank
4.1 Islamic Banking Branch:
In the year 2004, Jamuna Bank Limited opened another Islamic banking branch at Jubilee Road, Chittagong on November 27,2005. The already existing Naya Bazar Islamic Banking branch started its operation from October 25, 2003, the total Islamic banking branches stands at 02 (two). JBL’s Shariah Council consists of 06 (Six) members, among the 02 (two) are Khatib, 01 (one) is Ex-Economic Advisor, 01 (One) is Vice Chancellor, Islamic University, 01 (One) is Principal and other one is Eminent Banker. During the year 2004, the Shariah Council of JBL conducted 03 meetings to discuss all aspects of Islamic Branches operation.
4.2 Risk Management:
Bangladesh bank as a regulatory body advised all banks to implement an effective risk management system focusing on five core risks such as:
- Asset Liability management.
- Credit Risk Management.
- Foreign Exchange Risk Management.
- Internal Control and Compliance.
- Prevention of Money Laundering.
These risks are termed as an integral part of business and such risk management and monitoring of loan portfolio was always treated with the highest priority in JBL. The Bank is always trying to establish superior monitoring of its credit risks and returns, in maturity mismatch between asset and liabilities has always been reviewed in the ALCO meeting to maintain acceptable risk. The Bank’s credit policy guideline and procedures as continuously reviewed and upgraded by the well established Internal Credit Committee. The Bank also maintain an effective system of Internal Control, establishing systems and procedures to scrutinize the transactions, encompassing key back up procedures and commissioning of proper governance structure, risks and returns are evaluated with a goal of producing sustainable revenue, reducing earnings volatility and increasing shareholder’s value. JBL is always aware of classification of advances, which now stands at a negligible 0.46%.
4.3 Human Resource Management:
Jamuna Bank Limited recognizes the importance of employee participation in the maintenance of standards and general well being of the organization. Success of bank depends on its employee working together as a team for the interest of the banks. JBL’s banking strategy is to provide excellent service to its customer through a highly motivated and engaged people. The management believes in having a strong and various workforces to take the bank towards the path of shining progress. JBL draws from the best available training programs and facilities both international and domestic to meets its training and training environment needs and globally benchmarked skills and capabilities. JBL’s human resources policy and practices are designed to secure the goodwill, motivation, commitment, and contribution of all employees to achieve mission and objectives of the bank. The bank has established and well recognized policy of encouraging employee involvement through communications and consultation on a wide range of uses. Wherever possible, employees are invited to participate in multidisciplinary quality and process improvement activities. The Bank has already allocated a space to establish a well-organized training institute, where internal and external trainers will conduct Bank’s in-house training program and such programs will be designed to continuously upgrade itself within the latest development in the banking as well as information technology. JBL always have the view of hiring the best people both from local and foreign banks and to recruit talents through competitive exams, and implementing programs to develop and retain high quality human resources. JBL has well thought plaices for the welfare of its employees, like Provident Fund, Gratuity Fund, Superannuating Fund, Car Loan, House Building Loan etc. JBL’s human resource management policy is to identify the right combination of skills, knowledge, behavior and values and divert them from the welfare of the Bank, themselves ands the country as whole.
4.4 Target Market For Loans and Advances:
- Agro-processing Industry.<