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1.1
Introduction

2.1 Organizational Objects:

1. To
earn and maintain CAMEL Rating “Strong”

2. To
establish relationship banking and improve service quality through development
of strategic Marketing plans.

3. Be
one of the best banks of Bangladesh.

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

5. Achieve
excellence in customer services and superior to all competitors.

6. Cater
to all differentiated segment of retail and wholesale customer.

7. Be
a high quality distributor of product and services.

8. To
ensure an adequate rate of return on Investment.

9. To
maintain a healthy growth of burins with desired image. 

10.   To ensure optimum Utilization of all available
resources.

2.2 Bank’s Mission and
Vision:

2.2.1 Vision:

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

2.2.2 Mission:

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

2.3 Organogram:

2.3.1 Board of Directors:

Board of Directors of the Bank is a unique
combination of both private and Government sector experience. Currently it
consists of 13 members elected from the share holders. There are seven directors
that represent the sponsors and general public and senior officials in the rank
and status of Additional Secretary/Joint Secretary represent the Government.
Managing Director is the ex-officio Director of the Board. In line with the
guidelines of Bangladesh Bank, a three member Audit Committee of the Board of
Directors has been formed to assist the board in matters related to Audit and
Internal Control System of the Bank.

Board of Directors
1	Al-haj Md. Belel Hossain	Chairman
2	Gazi Golam Murtoza	Vice Chairman
3	Md. Motior Rahman	Managing Director
4	Engr. A.K.M. Mosharraf Hussain	Director
5	Al-haj.M.A. Khayer	Director
6	Md. Mahmudul Hoque	Director
7	Md. Tajul Islam	Director
8	Al-Haj Nur Mohammed	Director
9	Engr.Md. Atiqur rahman	Director
10	Al-Haj Md. Rezaul Karim Ansari	Director
11	Farhad Ahmed Akand	Director
12	Kanutosh Majumder	Director
13	Golam Dastagir Gazi Bir Protik	Director
14	Fazlur Rahman	Director
15	Shakhawat Abu Khair Mohammad	Director
16	Md. Sirajul Varosha	Director
17	Md. Ismail Hossain Siraji	Director
18	A.S.M.Abdul Halim	Independent Director

2.3.2  
Management Structure

The fourteen 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.

Besides, there is an Audit Committee in the Board
to oversee compliance of major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing
Director and Head of Divisions are responsible for achieving business goals and
overseeing the day to day operation.The CEO and Managing Director are assisted
by a Senior Management Group consisting of Deputy Managing Director and Head of
Divisions who supervise operation of various Divisions centrally and
co-ordinates operation of branches.Key issues are managed by a Management
Committee headed by the CEO and Managing Director. This facilitates rapid
decisions.There is an Asset Liability Committee comprising member of the Senior
Executives headed by CEO and Managing Director to look into all operational
functions and Risk Management of the Bank.

2.3.3  
Managerial Hierarchy of
Jamuna Bank Ltd. :

2.4
Employee
position of Naogaon Branch :

SL NO	Name of The Employee	Designation
01	Md. Rafiqul Islam	02	Mst. Farhana Yeasmin Rabbi	First Assistant Vice President
03	Subash Chandra Saha	Senior Executive Officer
04	Md Abul Kalam	Senior Executive Officer
05	Jencina Akter Banu	Senior Executive Officer
06	A .H .M .Raihanul Alam	Executive Officer
07	Md. Ruhul Amin	Executive Officer
08	Md. Abdul Hakim	First Executive Officer
09	Ratan Kumar Kundu	First Executive Officer
10	S .M .Golam Feroz	First Executive Officer
11	Md. Kamruzzaman	12	Md. Aynul Haque Shah	13	Avijit Kumar Bormon	Provisionary Officer
14	Md. Faruk Alam	Provisionary Officer
15	Asit Sarker	Driver
16	Md. Sohel Mollah	Peon
17	Md. Motiur Hossain	Peon
18	Md. Abul Basar Mithu	Cleaner
19	Alam Mondal	Tea Boy
20	Md.Mehedi Hasan	Peon

All the employees are well educated and well mannered.
The performance of the branch in June, 2011, the deposit target was Tk. 8 Crore
and achievement was Tk. 5.25 Crore, the import target was (Tk. 1.5 Crore)  and achievement  was (Tk. .90 Crore). In case of advance
target was (Tk. 8 Crore) and achievement was (5.5 Crore). Most importantly,
Profit position in June, 2011 is Tk. 1.10 Crore. Foreign Department plays a
vital role in facilitating export and import of the country.  It comprises of export, import and Foreign
Remittance sections. Through these sections it opens letter of credit, provides
different types of loans like; loan against trust receipt (LTR), Loan against
imported merchandise (LIM) to its consumers. Naogaon Branch of Jamuna Bank Ltd.
abides by all rules and regulations, policies and procedures relating to different
banking activities strictly.

2.5 Product and Services:

Jamuna Bank Limited (JBL) engages in wide range of
activities from small scale lending to large industrial project financing. It
involves other many services. Its range of products & services at glance
are as follows:

Deposit	Loans And Advance	Foreign	Other service
Current account	Loans (General)		Demand draft
Savings account	LTR (Quarterly)	Import L/C	Pay order
Short term deposit	Cash Credit Hypo	Foreign Remittance	Telegraphic transfer
Fixed deposit	Lease Financing (Monthly)
Other deposit under scheme	Loans Ag. Staff House Building		Selling and buying Foreign currency
Special savings deposit scheme	SOD (Financial Obligation)
	SOD (General)
	SOD (FDR)
	Consumer Credit Scheme
	SME Loan
	LDBP
	PAD (Cash)
	PAD (Back to Back)
	Demand Loan ABP-(BTB L/C)
	Demand Loan ABP-(D/P L/C)

2.5
Product Description:

2.6.1 Deposit:

A
total deposit of Tk.91 Crore in June 2011. Endeavor is underway for augmenting
low cost deposit by accommodating good customers at competitive price. For
healthy growth of business JBL puts emphasis
on no cost and low cost deposit all the time. A number of savings schemes are
in place for mobilizing long term deposits which can be planned to be
invested in term loans in-the area lease finance,
project finance and consortium finance with a view to having better yields.
JBL’s such move will motivate the people to have good savings habit, as
well. The position of deposit mix of the Bank as on 30.06.2011 is depicted
below:

Types of Deposit	No. of A/C As on 30.06.2011	Amount of Deposit As on 30.06.2011
Current Deposit	1060	23658750.00
Bills Payable	400	10491312.00
Savings Bank Deposits	1841	46955992.00
Fixed Deposit	789	382093913.00
Short term Deposit	169	43163021.00
Other Deposit Under Scheme	759	23447367.00
Special Savings Deposit Scheme	4197	374697442.00
Total Deposits	8815	904507797.00

2.6.2 Current Account:

Most businessmen maintain
current deposit accounts in
order to make their daily business
activities. This accounts funds change
most frequently than any other
accounts because customers use to
withdraw and deposit funds
in regular basis. JBL current account meets the needs
of individual and commercial customers through the schedule benefit.  A Current Deposit Account may be opened by
individual, firm, company and club, association, body corporate etc.

 
I.
Funds in the Current Deposit Account is
payable on demand.

 
II.
No interest is payable on balances of Current
Deposit Accounts.

  III. Current
Deposit Account may be opened with a minimum initial balance of Tk.5,000/-

  IV. Minimum
balance to be maintained in the account is Tk.1,000/-

 
V.
Customer willing to open Current Deposit
Account shall fill up the Account Opening Form (AOF) applicable to him/ her and
Specimen Signature Card (SS Card). The customer will sign in the space provided
under “Yours faithfully” and on the specimen signature cards.

  VI. In
case of proprietorship and partnership firms the relevant account opening form
is to be filled in and signed by the proprietor/ partner in their individual
capacity in the space provided under “Yours faithfully” and on the specimen
signature card in their official capacity.

VII.
In all other cases including companies etc.
the persons opening the account shall fill in the relevant Account Opening Form
and sign the Form in the space provided under “Yours faithfully” and in the
specimen Signature Card in their official capacity.

VIII.
Introduction of acceptable clients to be
obtained as per guidelines.

  IX. The
Manager’s approval for opening account shall be obtained by the concerned staff
member.

 
X.
Signatures of the account holder shall be
admitted by affixing the stamp “Signature admitted” and signing by the
authorized officer. The introducer’s signature shall be verified by affixing
the stamp “Signature verified” near the signature by authorized officer.

  XI. Blank
space of the Specimen Signature Card should be closed by drawing parallel
lines.

XII.
The particulars of the Account Opening Form
shall be entered in the Account Opened and Closed Register as per sequence
provided by the computer system.

XIII.
The customer shall be provided with Deposit
Slip in corporating the Account Number and be advised to make the initial
deposit in the account. The amount of initial deposit shall be entered in the
Account Opening Form.

XIV.
Cheque Book shall be issued on request on
completion of all formalities including initial deposit. Cheque series to be
entered in the Account Opening Form at the bottom right and authenticated by
authorized officer.

XV.
After posting of all particulars of the
account including cheque series, one authorized officer shall check/ verify the
same in the computer screen and record it in the form with signature.

XVI.
Manager/ Authorized Officer shall apply
sufficient intelligence and common sense to ascertain genuineness of the
account holder. No account shall be opened without approval of the Manager.

XVII.
Clear instruction regarding operation of the
account shall be noted on the Account Opening Form and Specimen Signature Card
especially in respect of death of inability of the account holders, or the
person operating the account. The account holder shall confirm the instructions
under specimen signature.

XVIII.
An indemnity shall be obtained from the
customer if he/ she signs in language other than English/ Bengali.

XIX.
Illiterate persons shall be discouraged to
open Current Account. If opened withdrawal shall be allowed on personal
appearance of the account holder.

XX.
The account opening form shall be sent to
the respective computer terminal for posting and S.S. Card shall be retained
serially in the S.S. Card Box under custody of Cheque Passing Officer.

XXI.
One of the photographs of the Account Holder
is to be pasted with AOF and another one with S.S. Card. AOF to be retained in
serial order in Pasting File.

XXII.
A letter of thanks to be sent to the account
holder as well as to the introducer.

XXIII.
All new accounts opened during the day shall
be personally checked by the Manager at the close of business of each day.

XXIV.
Checking officer shall particularly see the
introduction, initial deposit in cash or cheque, nature of business of the
account holder, Trade License, Partnership Deed/ Memorandum of Articles of
Association, Resolution etc.

XXV.
Similar Accounts should be noted in the AOF
and care should be taken while making posting of transactions in such accounts.

XXVI.
The Computer Program used by bank shall
provide reference of clients. Branch Manager must ensure that their computer
system provides reference of client.

XXVII.
Classified Deposit Ownership Program to be
maintained in the Computer System for facilitating periodical returns to
Bangladesh Bank.

XXVIII.
Bank shall provide monthly statement of
account to clients as per computer system of the branch.

XXIX.
If minimum balance of the account falls
below Tk.2,000/- once during the half-year, incidental charge will be recovered
as per Head Office Circular.

XXX.
Bank at its discretion may close any account
with prior notice to the account holder.

XXXI.
In case of closure of account by the account
holder, branch shall recover closing charges as per schedule of charges.

2.6.3 Short Term
Deposit Account:

I.
Deposits held in STD Account are payable in
7 (Seven) days notice.

II.
Cheque books may be issued to account
holders for withdrawal of funds.

III. Repeated
withdrawal without notice shall be discouraged.

 
IV.
Interest is payable on balance held on daily
product basis as per computer program used by bank.

 
V.
For opening STD Account, AOF used for
Current Deposit Account shall be used.

 
VI.
Other formalities are similar to Current
Deposit Accounts.

  VII. Minimum
balance requirement for accruing interest is Tk.100, 000 (Taka one lac) only.

2.6.4
Savings Account:

I.
Savings Bank Account may be opened in the
name of adult individual who are mentally sound and also jointly in the names
of two or more persons payable to either or both or all of them or to the
survivor or survivors.

II.
Savings Bank Account may be opened in the
name of a minor also.

III. Saving
Bank Account may be opened in the names of clubs, societies, association and
similar institutions and even by government and semi-government offices.

 
IV.
Account shall be opened with at-least a
minimum initial deposit of Tk.1,000/-.

 
V.
Interest at the rates fixed by Head Office
from time to time is applied half-yearly on the balances held on daily product
basis. Now its interest rate is 5 %.

 
VI.
Not more than one account is allowed to be
opened in the same name. But this will not be applicable to parents willing to
open more than one account in his/ her name in respect of each minor child.

  VII. Savings
Bank Account shall not be allowed to be overdrawn under any circumstances.

  VIII.
Account opening formalities like Current
Account should be followed.

 
IX.
Savings Bank Account should not be allowed
to be operated like Current Account

 
X.
Not more than 25% of the balance can be
withdrawn without 7 days notice. Withdrawals in the account shall be allowed
twice in a week.

 
XI.
No interest shall be paid to such accounts
in the month for violation of the above rules.

  XII. Bank
shall provide monthly-computerized statement of accounts to account holders
instead of passbook.

  XIII.
Bank may at its discretion close any account
with prior notice for repeated return of cheques due to insufficient balance.

  XIV.
Bank may recover charges up to a maximum of
Tk.100/- per instances of cheque return.

 

2.6.5 Fixed deposit:

JBL
offers fixed deposit for different interest rate for
different period of time. In the receipt holders name and other
particulars are kept as secrete documents on the bank. In the documents the
name of nominee is also incorporated.

If any holder
of the receipt wishes to en cash receipt before the
maturity the bank usually do not pay the interest in the same rate but pays a
lump sum amount of interest to the FDR holder.

Features

– Interest is compounded once a quarter

– Loan may be allowed up to 80% of the deposited
amount under lien.

– Excise
duty and source tax etc. are deductible from the
depositor profit.

Interest rate:

1month and less than 3monthes- 10%

3monthes and less than 6monthes- 12%

6monthes and less than 12monthes- 12%

12monthes and Above- 12%

2.6.6 Monthly Saving Scheme (MSS):

Monthly saving scheme is a nature of time deposit and it was introduced
in 1983. According to this scheme the investor was required to deposit a fixed
amount of money per month Tk. 500/- Tk. 10000/- for a period of 5 years and 10
years. Profit on the invested amount is compounded at the rate of 12.42% for
maturity. But the profit rate often varies as the bank follows Islamic shariah
Banking Law. [Approximate amount shown in the following table

Monthly
Installment

Maturity
Amount After

Maturity
Amount After

Maturity
Amount After

Amount

5 Years

8 Years

10 Years

500

42300

81500

117900

1000

82600

163000

235800

1500

123900

244500

353700

2000

165200

326000

471600

3000

247800

489000

707400

5000

413000

815000

1179100

10000

826000

1630000

2358200

There are so
many different types of deposit schemes are also available in Jamuna Bank
Limited, Naogaon Branch. They are given below

Scheme Name	Monthly installment Amount	Maturity Period
Pension Deposit Scheme
Marriage Deposit Scheme
Education Deposit Scheme	800-4000	1 Years
Lakpoty  Deposit Scheme	975-2360	3-6 Years
Millionaire Deposit Scheme	4500-23600	3-10 Years
Katipoty Deposit Scheme	10525-232395	3-20 Years

Name of Scheme	Maturity Period
Double Growth Deposit Scheme	6 Years
Triple Growth Deposit Scheme	9 Years

SWOT Analysis

STRENGTHS	WEAKNESSES
• Experienced top management.	• Marginal capital adequacy .
• Satisfactory capital base.	• Exposure to large loan?
• Low infection in loan exposure.	• Excessive dependency on term deposits.
• Weak fund management.
	•   High cost of fund.
•   Islamic Branch funds are not ring fenced.
OPPORTUNITIES	THREATS
•   Regulatory environment	•   Increased competition in the market for
favoring private sector	quality assets.
development.	• Supply gap of foreign currency.
• Credit card.	• Over all liquidity crises in money market.
•   Small and medium enterprises.	Overall Banking System 4.1 Loans and Advances: Though there was an unfavorable business environment due to political turmoil throughout the year JBL was in constant efforts to explore different areas of credit operation and could raise the credit portfolios to Tk.100 Crore in June 2011 with an increase of Tk.80 Crore (25%) over that of the preceding year. Its credit facilities were concentrated on Trade Finance, Agriculture and related sector, project finance, wholesale and retail trade, transport sector, hospital & diagnostic centers and syndicate financing for big projects, capacity additions to the manufacturing sector and structured financing for developing infrastructure of the country. Initiatives are underway for helping small and medium entrepreneurs in the ventures for which, in JBL, we are developing SME credit products and strategies. JBL has also increased lending activities to small consumers through Consumer Credit Scheme.
Types of Loan	No. of A/C As on 30.06.2011	Amount of Loan As on 30.06.2011
Cash Credit	130	225978961.00
Lease Finance	17	62394434.00
Loan General	3	148780383.00
House Building	2	18795423.00
Overdraft	241	94638063.00
Retail Credit	20	3610782.00
SME	32	15964877.00
Others	9	430126945.00
Total	454	1000289868.00

LENDING
RATES OF VARIOUS TYPES OF LOANS AND ADVANCES

No.

Particulars

Range

01

Term Loan to large and medium Scale Industry

17.50% (Maximum)

02

Working Capital to large and medium Scale
Industry

16.50% (Maximum)

03

Trade Financing

16.50% (Maximum)

04

House Building

16.50% (Maximum)

05

Consumer Credit

15.50% ( Mid-Rate)

06

Overdraft against –

a) FDR

b) Schemes
Deposit

c) FDR/
Other Deposit instruments issued by other bank

3.50% above FDR

15.50% ( Mid-Rate)

15.50% ( Mid-Rate)

07

Others

15.50% ( Mid-Rate)

SOME POPULAR
CREDIT SCHEME:

Depending on the various nature of financing, all the
lending activities have been brought under the following major heads:

4.1.1 CC Hypo (Cash Credit Hypothecation)

Cash Credit allowed against
hypothecation of an asset is known as Cash Credit (Hypo) of goods on which charge of lending bank is created.

For Cash Credit (Hypo) Bankers take following
precaution:

·
The banker carefully verifies the stocks of the
hypothecated assets and their market price.

·
Obtains periodical statement of stock duly
signed by the borrower.

·
Ensure dial docks are duly insured against fire,
burglary with bank clause.

·
Obtains sufficient collateral securities.

·
Identify that
whether the goods are ready saleable and whether they have good demand
in the market.

·
Ensure the borrowers trustworthiness.

4.1.2
CC Pledge (Cash Credit Pledge) :

Cash
Credit allowed against pledge of goods is
known as Cash Credit (Pledge). For Cash Credit (Pledge) the borrower pledges his
goods to the banker as a security against the credit facility. The
ownership of pledge goods remains with the pledged. The bank remains
the effective control of borrower but under lock and key of the bank stored in the custody of borrower but under lock
and key of the bank. Banks appointed
guards are taken care of those goods round the clock. The banks delivered the
pledged goods to the party by turns against payment.

For Cash Credit Pledge following
points are taken into consideration before allowing:

·
Whether the quality of goods is ascertained.

·
Whether the goods are easily saleable and those
goods must have good demand in the market.

·
The quality of goods is ensured. The goods
cannot be perishable and will not deteriorate in quality as a result for short
and long duration.

·
The borrower has the absolute title of goods.

·
The prices of
the goods have to steady and are not subject to violent change.

·
 Goods
should be stored in the presence of a responsible bank office.

·
Ensure that stocks are duly insured against
fire, burglary, with bank clause.

·
Stocks must be invocated regularly by responsible
bank office.

·
The locks of the store are scaled and keys are
kept in the bank.

4.1.3 Overdraft:

The overdraft is always allowed
on a special A/C operated upon cheques. The customers may be allowed a certain limit up to which he can overdraw
within a specific period of time. In an overdraft A/C withdrawal and
deposit can be made any number of times
within the limit and prescribed period. Interested is calculated and charged
only on the actual debit balances on daily product basis.

Overdraft are three types

1.
Temporary
overdraft (TOD)

2. Clean
overdraft (COD)

Secured
overdraft (SOD)

4.1.4 Temporary overdraft (TOD):

Temporary overdraft (TOD) is allowed to honor
cheques which is future dated for the valued client without any prior arrangement. This kind of
facilities is provided for short time.

4.1.5 Clean overdraft (COD):

Sometimes Overdrafts are allowed with no other
security except personal security of borrowers.

4.1.6 SOD Secured overdraft (SOD) :

When Overdrafts are allowed against security is
known as secured overdraft (SOD)

Purposes:

·  
To businessman for expansion of their business.

·  
To contractors
and suppliers for carrying construction
works and supply orders.

Securities:

·
Lien on fixed/term deposits.

· Shares/Debentures/Protiraksha
Sanchay Patra

·
Insurance Policy.

·
Mortgage on real estates and properties.

Interest
Rate: 15.50 % per annum

4.1.7 Payment
against Document (PAD) :

Payment made by the Bank against lodgment of shipping
documents of goods imported through L/C falls under this head. It is an interim
advance connected with import and is generally liquidated against payments
usually made by the party for retirement of the documents for release of
imported goods from the customs authority. It falls under the category
“Commercial Lending”.

Eligibility:

Interest Rate: 15.50 % per annum  

This kind of
arrangements is allowed for purchase of internal bills. Some times Contractors need money to his liquidity problem.
To avoid thus kind of situation they want to take loan against their
future dated cheque.

Eligibility:

Internal Bills Purchased is usually provided for
future dated cheque against some service charge before 21 days of the maturity
date.

4.1.9 Loan against Imported Merchandise (LIM) :

This is as similar as CC Pledge. But these loans
are provided to the selected customers with internal contract.

Eligibility:

This loan is only for old and some special
customers.

4.1.10 Loan
against Trust Received (LTR):

Under this arrangement,
credit is allowed against trust receipt and the exportable goods remain in the custody of exporter but he is required to execute a
stamped export trust receipt in favor of the bank. Where the declaration
is made that he holds Purchased with financial assistance of the bank lit trust
for the bank.

Eligibility:

LTR is generally granted to exporter for
exportation of goods.

Interest
Rate: 15.50 % per annum.

4.1.11 Local/Foreign Documentary Bills Purchased
(LDBP/FDBP) :

Under
this arrangement, credit is allowed for exporter for o_r exportable
goods. Banks provide all the agency commission. Its pay back period is 21 days.

Eligibility:

LDBP/FDBP is generally granted to exporter for
exportation of goods.

Interest
Rate: 15.50 % per annum

4.1.12 Letter of Credit :

Issuing
letter of credit is one of the important services for JBL. A letter of credit
is a document authorizing by the bank for a
specific amount of money. Two types of L/C are provided by JBL.

Demand
Loan ABP Back T o Back L/C)

Demand Loan ABP (Deferred
Payment, L/C)

Eligibility:

This facility is given to the exporter/manufacturer
/producer

Terms and Conditions:

·  
It
should stipulate the name of the loan/credit/grant.

·  
It should bear the name of the designed bank.

·  
Item mentioned in the LCA form must contain with
the permissible item.

4.1.13 Loans (General):

When an advance
is made in a lump sum repayable either in fixed monthly installment or in lump sum and no subsequent debit
is ordinarily allowed except by way ⁱⁿ interest and
incidental charges etc. This is loans (general). Loan is allowed for a single
purpose where the entire amount may be required at a time or in a number of installments within
a period of short Spam. After disbursement of the entire loan amount,
there will be only repayment made by the borrower. Loan once repaid in full or
in part cannot be drawn again by the borrower. Entire amount of the loan A/C in the name of the customer and is paid
to hen through his SB/CD A/C. Sometimes loan amount are disbursed in
cash.

This loan is repayable within few
months or few years.

Securities:

1.
Lien on fixed/term deposits.

2.
Shares/Debentures/Protiraksha Sanchay Patra.

3. Insurance
Policy

4.
Mortgage of Real estates
and properties

5. Hypothecation
of stock/Stock/Machinery.

Interest
Rate: 15.50 % per annum

4.1.14 Lease Finance:

Jamuna bank Ltd. is the first private commercial
bank^, in Bangladesh who introduced lease finance facilities
for funding requirement of valued customers & growth of their business.

Lease Items:

·
Vehicles like luxury bus, Mini bus, Taxi Cabs
Cars, Pick-Up Van Etc.

·
Factory equipment.

·
Medical equipments.

·
Machinery for agro based industry.

·
Construction and office equipment.

·
Sea or river transport and computer for IT
education center.

 

Security /Collaterals:

The following securities are acceptable.

·  
Ownership of leased assets before the period of
loan adjustment.

·  
Collateral
securities in the form of land & building/Fixed Deposits/other cash
collateral /Wage Earners Development Bond having liquidation value covering at
least 100% amount of finance.

·  
Deposit of A
category shares, National Savings Certificates, ICB Unit Certificates,
assignment of life insurance policies, Bank Guarantee also be allowed as
collateral securities.

·  
Creation of charge of axed assets of file
existing industrial units requiring BMRE. Creation of charge on the existing
vehicle will also be acceptable as securities.

Charges :Bank charges are modest and
competitive.

Lease Deposit:

Before disbursement of lease finance, the lessee
shall have to deposit 3 months rentals in advance, which will be adjusted at
the end of the lease period.

Grace
Period:

For
capital machinery and equipment, maximum grace period of 6 (six) months may he
allowed for installation/commercial production.

Payment Date:

Rental payments shall be made every
month and there shall be three payment dates as detailed below.If Lease
executed.

Between 1^st
to 10^th ………5^th of subsequent months

Between 11st to 20^th……15th of subsequent months

After 20^th ………………25^th of
subsequent months.

Insurance Coverage:

The vehicle /Equipment /Lease asset shall have to
be covered by a comprehensive insurance policy throughout the whole lease term at lessees own cost in
the name of Jamuna Bank Limited. The premium shall be on account of
lessee.

Repair
and Maintenance of Leased items:

The lessee is obliged to maintain the
vehicle/Equipment in good working order and is solely responsible for
any loss or damage as long as it is in his ^possession. Repair and
maintenance cost for taking care of normal wear and tear and keeping it _in
good running condition during the lea^–se, pen-0d shall’ be the
responsibility of lessee.

Transfer
price/Lease Renewal Rental:

On final adjustment of the lease finance, the lessee may
have an option to purchase the equipment at
5% of the lease finance. Besides the above option, tile lessee may renew
the lease on year-to-year basis or return, the equipment to the bank.

4.1.15 Consumer Credit Scheme :

Consumer credit
is recently new field of micro credit activities; people who have limited
income can avail of this credit facility to buy any household effects including
car, computer, household and other commercial durables. JBL plays a
vital role in extending the consumer credit.

Eligibility:

The borrower must be the employee of the following
organization.

• Government
  Organization
• Semi- Government Organization
• Multinational Organization
• Bank
  and insurance Company
• Reputed Commercial Organization
• Professionals

Nature:

Mid term Micro Credit

Interest
Rate: 15.50 % per annum

Terms and Conditions:

·
Client will
procure the specified articles from the dealer/agent /shop acceptable by
the Bank.

·   All
of the papers /cash memo etc. related to the procurement of the goods will be
in the name of bank ensuring ownership of the goods. The ownership will be
transferred in the name of the client after full adjustment of Banks due.

·
The clients will have to bear all the expenses
of license, registration and insurance etc.

·
The clients
will have to bear the cost of repair and maintenance of the acquire articles.

4.2 International Trade Services:

4.2.1 Import Business:

The total import
business handled by the Bank in June2011
was Tk.92.25 million  compared to Tk.72.50 million in the preceding year
registering a rise of Tk.19.75 million being 27.4 percent. A sizeable
L/C’s were also opened by the Bank in the year
under review. The import items included industrial raw materials,
machinery, consumer goods, fabrics, accessories etc.

4.2.2 Export
Business:

In Jamuna Bank Ltd. Naogaon Branch, there is export
business.

Procedures for opening accounts:

Opening account with a bank is the way of creating a
banker customer relationship. In other words, it is a contract between banker
and customer. With this contract, bankers enter into certain obligations and
responsibilities.

Proper
introduction serves as a precaution against fraud and forgeries and safeguard
against inadvertent overdraft to bank. Obtaining proper introduction may
absolve the banker from the charges of negligence for conversion. So, while
opening a new account, emphasis would be given without exception to
introductory reference and inquiry. The following instruction to be followed
while opening account: – Introduction of Account to be obtained from a
respectable client acceptable to bank.

 I.The
introduction shall be obtained in writing in the respective column of Account
opening form.

II. For opening savings bank account of individual either singly or
jointly, passports and identity cards may be accepted for introduction, but
subsequently proper introduction may be obtained.

III. Introduction of Current Account by members of the staff may be
allowed but shall be discouraged as far as possible.

IV. Current Account shall preferably be introduced by another
Current Account holder acceptable to bank.

V. Introduction of Account holder of other branch may be accepted
with caution. In that case the introducer’s signature must be verified by
authorized officer of that branch and authenticated by a forwarding letter.

VI. Photographs of account holder must be attested by the
introducer.

VII. Letter of thanks is issued to introducer in Bank’s standard
specimen.

Closing an Account:

During the study we were taught how to close a bank account
before maturity. In order to close an account before maturity the holder has to
place a written application to the bank. After receiving the application the
bank will deduct service charge at an amount necessary for the respective account
as closing fee from the balance and rest of the money is given to the account
holder.

When Bank Closes an Account:

The relationship between bank and his customer is a contractual one and
may be terminated by either of them. Bank closes an account in the following
situations: -If a customer places written application to the bank to close his
account.

a. If the customer does not properly follow the rules
and regulations necessary to operate his account.

b. If the bank is notified the message of death of a
customer.

c. If the bank receives a notice regarding the
insanity of his customer.

d. If the bank receives a garnishee order from court.

e. Others.

Receipt
of Cash:

Cash
may be deposited either by deposit Slips for SB/ CD/ CC accounts or by other
credit voucher like single credit voucher, pay order/ Draft/ T.T. application
forms. Branches shall ensure the following:

I.
Cash receiving officer shall check the
deposit slip/ credit voucher/ application form as to its title of account,
number and amount in words and figures.

II.
The cash currency notes shall be counted
physically /by cash counting machine as per denominations of the currency notes
on the back of the voucher /deposit slip. The officer will enter the
particulars in the cash Receiving Register and sign on the related deposit
slip/voucher and affix “Cash Received” Stamp with date. He/she shall
write the amount in words and figures in red ink across the deposit
slip/voucher/ application form in token of receipt of the money. He /She shall
send the register along with the deposit slip/voucher for signing on the same
and authenticating the receipt in the register by the in-charge of the
department.

III.
The officer in-charge shall retain the
original of deposit Slip and other vouchers and send them to respective desk
for postings/actions. The duplicate voucher (counter foil) shall be handed over
to the depositor/client.

 
IV.
At the close of business the cash receiving
officer shall add all the entries in the register and if agreed with the actual
cash received by him, shall hand over the register for checking by
officer-in-charge.

 
V.
Receiving Cash officer will hand over the
cash to the entire cash in-charge duly checked by him.

Payment
of Cash:

Cheques,
Cash Debit Vouchers, Fixed Deposit Receipts, Monthly Term Deposit Receipts, Bearer
Certificates of Deposit, Demand Drafts, may be placed for payment at the
counter by clients, beneficiaries and various departments for encashment.
Branches shall ensure the following:

I.
The instrument is checked for any apparent
discrepancy and evidence of posting and cancellation.

II.
Specimen Signature of cancellation officer
shall be available with cash paying officer for convenience of payment.

III.
On being satisfied, the cash paying officer
shall count cash for payment and the denominations of notes are written on the
reverse of the instrument invariably.

 
IV.
Signature of the bearer is obtained on the
reverse of the instrument and compared with the signature already obtained from
the bearer while presenting the instrument.

 
V.
If the presenter is found to be the same
person, cash is handed over to the bearer/presenter.

 
VI.
“Cash Paid” Stamp is affixed on
the face of the instrument and signed by the cash paying officer.

 
VII.
Particulars of the instrument are entered in
the cash payment register.

  VIII. Paid
instruments are preserved with the cash paying officer.

 
IX.
At the close of bank hour, the amounts
entered in the cash payment register is totaled. The total must agree with the
totals of cash paid.

 
X.
The total is written in the cash payment
register in words and figures.

 
XI.
The officer-in-charge of cash department
shall check the entries and instruments to ascertain that the payment has been
made correctly and shall release the instruments from cash payment register by
his initials against each entries in the cash payment register.

 
XII.
The officer-in-charge also checks and signs
the entries.

  XIII. The
cheques/instruments are sent to accounts department for stitching and
preservation.

4.2.3
Remittance, Bills and Endorsements.

Payment of Telegraphic Transfer:

Receipt of message and verifying the below condition
then payment

I.
The in-charge and the manager verify the
test message.

II.
If the test-number, payees A/C number and
title of the A/C does not agree a telex is sent to the branch concern asking
them to rectify the message with correct test number and other particulars.

III. If
the test-number agrees and all other information is correct, test agreed seal
is affixed on the message and signed by the officers.

Where the payee does not have any account
in the drawee branch a Pay Order/ Pay Slip is issued in favour of the payee an
delivered to his banker on the same day.

Issue
and Payment of Pay-Orders:

I.
The customer is asked to fill up the
application that is treated as a credit voucher for: Bills Payable
Account-Pay-Order issued.

II.
The voucher is given to the customer to
deposit the cash with the cashier.

III.
The cashier receives the cash and delivers
the vouchers to Remittance Department against initials in his book.

 
IV.
Pay-Order is prepared and entered in
Pay-Order Issued Register. The amount of the Pay-Order is protect graphed.

 
V.
The Pay-Order number is written on the
vouchers.

 
VI.
Pay-Order Register and the vouchers along
with the register are sent to the officer-in-charge for checking and signature.

 
VII.
After officer-in-charge’s signature, the
pay-order and the voucher are sent to Manager/Second officer for second
signature.

  VIII. Acknowledgement
of the purchasers of P.O. shall be obtained on the back of the counterfoils of
the instruments.

 
IX.
The vouchers are sent to Account Department.

Payment in cash: When pay-order is
presented for encashment similar procedure is adopted as explained in the
foregoing for payment of Demand Draft in cash. It also paid by clearing
/transfer delivery /cash transfer Procedure is similar to that explained in
paras of Payment of DD through clearing transfer delivery and cash transfer.

Balancing of remittance accounts:

I.
D.D. Payable, T.T. Payable, P.O. issued,
D.D. Paid Without Advice accounts should be balanced on monthly basis.

II.
The balances are agreed with the figures of
concerned Subsidiary Accounts.

Issue
of duplicate pay-order:

I.
In addition to obtaining application from
the purchaser, a confirmation should also be obtained from the beneficiary to
the effect that the instrument has been lost or not received by him/them.

II.
Head Office is informed regarding loss of the
P.O. for circulation to the branches.

III.
An indemnity bond affixed with special
adhesive stamp of Tk.150/- is obtained from the applicant.

 
IV.
A note to this effect is made on the
original application form and the Pay-Order Issued Register.

 
V.
The indemnity bond is kept in the
“Indemnity Bonds for duplicate instruments issued file.”

 
VI.
The Pay Order is issued marked “Duplicate”
in Red Ink.

Issue of duplicate demand draft:

I.
On receipt of application from the purchaser
of the draft regarding its loss and issue of duplicate one, the signature of
the applicant is verified from the original application.

II.
Head Office is informed of the loss of DD
immediately and the drawee branch is informed of the loss of draft number and
requested to exercise caution by letter or telex. The telex charges if incurred
are recovered from customer.

III.
On receipt of confirmation from the drawee
branch that the draft is still outstanding in their books and that caution is
being exercised by them, a duplicate draft is issued to the purchaser after obtaining
an Indemnity Bond in Bank’s prescribed format.

 
IV.
The draft is issued marked
“DUPLICATE” in red ink, repeating the original printed number,
striking out the present printed number and giving the original controlling
number.

 
V.
A note to this effect is made on the
original application form and the Drafts Issued Register.

 
VI.
Drawee branch is advised regarding issuance
of the duplicate draft.

 
VII.
The indemnity bonds are kept in
“Indemnity Bonds for duplicate instruments issued File.”

Cancellation of pay-order:

I.
On receipt of application along with
pay-order for its cancellation, the signature of applicant is verified from the
original application form.

II.
Before the pay-order is cancelled it is
ascertained that no duplicate pay-order has been issued. The pay-order is cancelled
and kept with the debit voucher.

Cancellation
of demand draft:

I.
On receipt of application along with the
Demand Draft for its cancellation the signature of the applicant is verified
from the original application form and the genuineness of the Demand Draft is
examined.

II.
Before the draft is cancelled it is
ascertained that no duplicate draft has been issued.

III.
The draft is cancelled bearing out the
signature thereon, and a note to this effect in red ink is made in the original
application form and the Drafts Issued Register and initialed.

 
IV.
The cancelled draft is attached with the
debit voucher.

 
V.
The branch concerned is advised to this
effect with instruction to send IBCA for the cancelled Demand Draft.

 
VI.
On receipt of IBCA the entry in Sundry
Assets Account-DD cancelled is reverse

Check Dishonored by Bank:

During
the internship program, I was taught how a check is dishonored by bank. The
statutory duty of a bank is to honor his customer’s check. But a bank can
dishonor a check for various reasons. Some of the reasons for that a bank
dishonors his customer’s check are stated below- If

a.
the customer’s
account position is not okay, that is if the amount of money mentioned in the
check is greater than customer’s deposit.

b.
the check is
torn.

c.
the check is
post dated or a stolen checks.

d.
the customer’s
signature given on the check is a forged one or does not tally with his
specimen signature kept in bank custody.

e.
the check is
not submitted to the customer within banking hour.

f.
the duration
of issuing the check is more than 6 months.

g.
Other

Customer
Services:

 

Loans and Advances 

5.1 Performance Overview of the Bank:

Jamuna Bank Ltd, since incorporation as a private
commercial bank in the country from 2001, continued to maintain its stable
position in the industry. The bank has been able to show a strong performance
in business and financial accounts. With better customer service, fulfillments
of commitments to corporate social responsibilities, ensuring sound corporate
governance, bank consolidated a solid presence with the customers and general
public and in the industry. During the year under review, significant
improvement was evident in deposit mobilization, advance portfolio augmentation
and recovery of nonperforming loan. Foreign trade, in terms of import, export
and inward foreign remittance have also shown noteworthy growth in the year
2010. Profit for the year has steadily improved compared to the profit of the
preceding year. Expansion and renovation of branch, soft launching of ATM
services, Debit Card Issuance and bringing more branches under online facility
are among the other highlights of activities of bank.

5.2 Performance at a Glance: 

 
Fig. in Million Taka

Particulars	2011	2010	2009	2008	2007
Authorized Capital	4000.00	4000.00	1600.00	1600.00	1600.00
Paid up Capital	1,313.27	1225.71	1072.50	429.00	429.00
Reserve Funds	1,131.07	651.92	629.33	487.46	245.65
Tier I Capital (Capital & shareholder’s equity)	2,160.73	1651.58	1562.47	807.14	607.32
Tier II Capital	313.32	221.14	139.36	109.32	67.33
Deposits (Core & Bank)	27,307.94	20924.02	17284.81	14454.13	10450.16
Advance	21,036.86	16617.45	12796.63	11011.83	6722.80
Investments	4,238.63	5390.03	2552.67	2037.84	1163.70
Import Business	30,311.71	22191.84	15457.66	12151.90	7923.90
Export Business	18,617.43	13990.33	11583.64	6521.80	4790.80
Total Income	4,074.39	3102.99	2749.90	1727.20	1397.27
Total Expenditure	3,034.19	2278.79	2048.58	1307.26	1088.44
Operating Profit	1,040.20	824.20	701.32	419.94	308.83
Profit before Tax	865.82	405.04	499.97	363.31	273.70
Profit after Tax	479.44	89.11	253.40	199.82	155.95
Fixed Assets	609.02	174.40	137.36	106.46	97.99
Total Asset(Excluding Contra)	31,646.63	26405.40	20157.02	16863.77	13491.52
Contingent Liabilities & Commitments	9,169.47	6409.26	6574.38	5445.68	2903.96
No. Branches	39	35	29	23	19
No. of Employees	935	861	631	525	447
No. of Correspondents	715	715	643	390	333
Income from investment	666.15	474.48	255.66	126.30	80.44
Earning per Share (Taka)	38.21	8.04	31.94	46.58	36.35
Net Assets per Share Taka (NAV)	164.53	135.14	145.68	188.14	141.57

5.3  Liquidity Statement :

LIQUIDITY
STATEMENT

(Asset and
Liability Maturity Analysis)

FOR THE YEAR
ENDED 31ST DECEMBER, 2008

Particulars	Up to 01 month	1-3 months	3-12 months	1-5 years	More than 5 years	Total
Assets:
Cash in hand	1,864,959,818	–	–	–	–
Balance with other banks and financial institutions	393,451,681	,1100,000,000	850,000,000	–	–
Money at call on short notice	50,000,000	–	–	–	–
Investment	4,198,625,873	–	–		40,000,000
Loans and Advances	1,010,751,356	3,742,783,418	9,894,012,811	5,265,293,827	1,124,019,600
Fixed assets including premises, furniture and fixtures	–	–	–	514,353,906	94,422,259
Other assets	64,878,844	331,469,009	7,960,523	1,099,399,696	–
Non-banking assets	–	–	–	–	–
Total Assets	7,582,667,572	5,174,252,427	10,751,973,334	6,879,294,307	1,258,441,859
Borrowings from Bangladesh Bank, other banks, financial institutions and agents	–	–	396,123,775	–		–
Deposits and Other Accounts	6,815,950,834	9,930,102,918	6,065,581,430	364,500,548		4,131,800,411	Other liabilities	26,029,758	–	809,170,231	946,637,751		–	Total Liabilities	6,815,980,592	9,930,102,918	7,270,875,436	1,311,138,299		4,131,800,411		Net Liquidity	740,686,980	3,481,097,898	5,568,156,008		(2,873,358,552)	JAMUNA BANK LTD. Establishment: 03 June, 2001. Branches : 67 Employees : 1720 Customers : 5,000000. 6.1 Findings: §  They have not sufficient efficient employees to operate different department in the bank.  So they should increase efficient employees in different department. §  Staff meetings and departmental meetings at the branch level does not held or very few which is very essential to develop service quality as well as problem solving. But this practice is very few. So It may create major problem in future. § The bank is operated through 67 numbers of branches that are very few. So few number of branches are a barrier to improve bank growth. §  ATM booth service is an online popular service. The bank’s online service is very poor. So if they want to survival in competition market they should introduce online service as early as possible. §  Technology that JBL is using for their banking system is not up dated. Now there is some international bank in Bangladesh, they are very fast and very up dated. JBL is losing their clients because of lack of technology. §  The management of AIBL takes no risk when they give loans to their clients. They are very slow in decision-making. They sometimes fail to take the current opportunities for this slow decision making process. §  The Jamuna Bank is too much centralized. For each and every work branch office has to get permission from the head office. The head office tightly controls each and every branch office. This dependency on head office causes slow down their activities. 6.2 Data Analysis: Respondents answers to Naogaon Branch regarding client’s attitude evaluation: Table 1. Share of Mind (Figure Mentioned Bank): In the following table, different respondents mentioned different bank’s name while asking them to mention a bank’s name that comes to their mind first in case of taking loan and other services. Name of Bank No. of Respondents Percentages Jamuna  Bank  Ltd. 7 23.33 BRAC  Bank  Ltd. 1 3.33 National  Bank  Ltd. 1 3.33 Prime Bank  Ltd. 8 26.67 IFIC Bank  Ltd. 4 13.33 Southeast Bank  Ltd. 1 3.33 Mercantile Bank  Ltd. 5 20 Uttara Bank Ltd. 3 10 Total 30 100 Source: Compiled data from Field Survey. From the table, it is known that 26.67% clients mentioned Prime Bank Ltd., 23.33% respondents mentioned the name of Jamuna Bank Limited, 20% respondents mentioned Dutch-Bangla Bank Ltd. and the rest mentioned other different bank’s name. So, according to the client’s preference Jamuna Bank Limited is in the 2nd position in case of taking loan and other services. The bankers of the Jamuna Bank Limited need to find out the reason behind the bank being in 2nd position and need to be more focused to make the bank more reliable, customized and provide maximum satisfaction. The following graph showing the client’s preference towards banks: Figure: Consumer’s preference towards bank Table 2 Most of the Transaction Bank: The following table shows the respondent’s transaction preference with the bank. Here, the respondents have said about their preference of banks in case of making transaction. Name of Bank No. of Respondents Percentages 7 23.33 Prime Bank Ltd. 6 20 National Bank Ltd. 2 6.67 Uttra Bank Ltd. 5 16.67 Southeast Bank Ltd. 2 6.67 IFIC Bank Ltd. 4 13.33 3 10 BRAC Bank Ltd. 1 3.33 Total 30 100 Source: Compiled data from Field Survey Most of the respondents opined that they use Jamuna Bank Limited for their transaction. 23.33% respondents said about Jamuna Bank Limited, 20% respondents said about Prime Bank Ltd, 16.67% respondents said about Dutch-Bangla Bank Ltd.,  13.33% preferred IFIC Bank Ltd, 10% respondents said about Mercantile Bank Ltd, 6.67% respondents said about National Bank Ltd. and City Bank Ltd. and 3.33% respondents said about BRAC Bank Limited. From this study it can be said that Jamuna Bank Ltd. is in a favorable position according to the respondent’s preference. Respondent’s Opinion Considering Banking Attributes: In this study it is found that consumers consider Interest rate, Client Service and transparency as the definitely important attributes in case of taking loan. Consumers gave highest weight on Interest rate with weighted average of 4.00 followed by 3.47 for Client service and 3.43 for Security & mortgage. Following table shows the importance of various banking attributes (Rating scale of 1 – 4, where 4 indicate definitely important and 1 indicates very poorly important attributes): Table 3. Attributes by Consumer Rating: Attributes 4 3 2 1 Total Respondents Average Weight Interest Rate 30 0 0 0 30 4 Transparency 20 5 3 2 30 3.43 Client Service 20 5 5 0 30 3.47 17 7 5 1 30 3.33 Bank’s Environment 5 8 7 10 30 2.27 Period and installment 11 6 4 9 30 2.63 Time of process 9 8 7 6 30 2.67 Technological support (ATM, Online Banking etc.) 9 15 3 3 30 3 Source: Compiled data from Field Survey So, to provide better service and maximum satisfaction, these attributes need more attention to be improved. Respondent’s opinion in favor of 4-point scale considering different banking attributes are shown in the following graph. Figure: Importance of Attributes to Consumer. Considering banking attributes, the respondents have ranked the banks using four point scale where 4 = Best, 3 = very good, 2 = good, 1 = below average. In the following table the calculated weighted average of the different banking attributes for different banks are given on the basis of respondent’s opinion.  Bank’s Name Þ Jamuna Bank Ltd. Prime Bank  Ltd. National Bank Ltd. BRAC Bank Ltd. Mercantile Bank Ltd. ß Bank’s Environment 2.87 3.37 3.03 2.93 2.90 Client Service 3.37 3.57 2.50 2.97 3.27 Trustworthiness 2.70 2.90 2.53 3.17 2.57 Accuracy 2.80 2.87 2.80 2.97 3.57 Transparency 2.87 2.43 2.73 2.77 2.93 2.93 3.17 3.00 3.07 2.83 2.57 3.03 3.63 2.97 2.70 Interest rate 2.93 2.60 2.40 3.27 3.20 Time of process 2.80 2.53 2.93 2.40 2.40 Technological Support 2.43 3.03 2.67 2.87 2.97 Source: Compiled data from Field Survey By analyzing the weighted average of different attributes rated by the respondents and comparing with other banks it is found that the performance of Jamuna bank ltd. is not so good and satisfactory. The bankers must put an eye to these attributes to be improved to get maximum satisfaction from the customers. According to the respondents, Prime bank Ltd. is the most rated bank. The maximum criteria of Prime Bank Ltd. have been achieved highest weight. Especially the attributes of Prime Bank ltd. – Bank’s environment, Client service, Security & Mortgage and Technological support having weighted average respectively 3.37, 3.57, 3.17 and 3.03 which is more than other banks including Jamuna Bank Ltd. National Bank ltd. is having highest weight 3.63 on Period and Installment and 2.93 on Time of process. BRAC Bank ltd. is having highest weight 3.17 on Trustworthiness and 3.27 on Interest rate. Finally Mercantile bank Ltd. is having highest weight 3.57 on accuracy and 2.93 on transparency. Table 5. Consumer’s Opinion about Interest Rate Interest Rate No. of Respondents Percentages High 8 26.67 Medium 13 43.33 Low 9 30 Total 30 100 Source: Compiled data from Field Survey 26.67% respondents said the interest rate of JBL is high, 43.33% said the interest rate is medium and 30% said interest rate is low. So it is found that most of the respondents consumer think the interest rate is medium in Jamuna Bank Ltd.[Note: The conductor use the table for data analysis and getting the findings are based on primary data. (Respondents answers through Questionnaire)] Key Success Factors: Provide quality services to match with requirements: Primary data are collected from the 30 respondents who are clients of JBL, Naogaon Branch enjoying loans and advances of JBL. Analysis of consumer attitude is the key to improve consumer satisfaction and understand their expectations, which eventually will lead to the achievement of organizational objectives and success in a more efficient manner. So, to hold this market the bank always tries to provide quality services that match the consumer’s requirement.Active promotional activities: The promotional activity of Jamuna Bank Ltd. Naogaon Branch is not strong because of identified that most of the respondents are not aware about many types of banking services, especially loan products. Only two or there types of loans are known by the respondents. Hiring dynamic personnel: The bank should hire more dynamic personnel, who are able to demonstrate, motivate and explain the feature of their product’s services. More training facilities: More training should be conducted for the bankers to improve their analytical ability and professional standard regarding risk analysis and other tools and techniques in selecting the borrowers and analyzing the loan proposals. Establishment of research and development cell: Interest income occupies the major part of the total earning of a bank and bank’s profitability mainly depends on interest earning capacity, so bank should establish a research and development cell for the purpose of the lending analysis and recovery of loans. Flexibility in rules & regulations: JBL Credit Department should reduce its complex and rigid rules and regulation. The prevailing procedures require many formalities and take many papers etc. in case of taking loan. MANAGERIAL CONCLUSION AND RECOMMENDATION   7.1 Conclusion: As one of the commercial bank, Jamuna Bank Ltd. has to survive in this competitive environment. For this, the major task of the bank is to manage its assets and liabilities in an efficient way.  To make the assets especially loan and advances, banks must have to perform well in this competition. Otherwise this loan default culture will never end. Credit department is a crucial part for any commercial bank as it is the main stream to earn profit. The loan products have brought the unexplored area of the consumers to enjoy the benefits of bank finance. This group consists of the people who are employed individuals, self employed persons, and even businessmen. As the new entrants come to the market, competition gets intense. Jamuna Bank Limited introduces a large range of products and services to the customers through its Credit Department and provides smooth services to them. So, operation and satisfaction of the customer is now in satisfactory level. However, it is clear from the study that JBL’s Consumer Credit Division provides very effective services to its customers and they are satisfied as almost all the clients responded positive to the bank’s performances. Yet, there exists some problems but if the division works with even more sincerely then it would be definitely better for the bank. At the beginning the company does not expand the product for wide range of customer but now they are interested to expand it in wide range because of its demand and profitably. It also has a positive impact for other products of the bank. So, now they are providing more and more services to retain present customer and attract the new. They are trying to make a competitive cost by providing more benefits than the competitors. Government and the consumer rights organizations are getting more conscious and creating more pressure to them, the services are expected to be increase day by day. Thus by providing these various services, Jamuna Bank Limited is playing a vital role in the banking system as well as in the economy of Bangladesh. 7.2 RECOMMENDATIONS: From the study, consumer behavior analysis, its importance and its relation specifically towards Jamuna Bank Ltd, Naogaon Branch are understandable. Based on the findings and identified key success factors, some policy implications that are found goes for suggestion to Jamuna Bank Ltd. Naogaon Branch are mentioned as follows: From the findings it is found that the existing consumers of Jamuna bank Ltd. Naogaon Branch are mostly highly educated. For this reason the bankers need to be more careful to handle these customers. They need to be more strategic to know the clients expectation and their enquiries. Market is very competitive. It is very difficult to retain the existing customer of the bank. So the client can switch to another bank from this bank any time. Bank should fixed-up specific types of client strategy according to the different character of client. When determining the Share of Mind of the consumers in consideration with different bank preferences, it is known that the name of Jamuna Bank ltd. comes in second position. So the bank needs to get more attention to improve its services given to the clients. The bankers need to be more focused to make the bank more reliable, customized and provide maximum satisfaction than competitors. Promotion is very helpful for creating image in the market. With creative adverting and other promotional tools marketers should try to develop a distinctive image in the banking sector. As the respondents are the loyal clients of the Jamuna bank ltd. Naogaon branch, their most of the transaction occurred in this bank. Bankers should try to develop healthy relationship with these customers through proactive marketing approach so that these customers can bring more new consumers in the bank. Relationship will make the consumers to be with the bank for long time. · By considering the past few years’ transaction occurred in the bank it is known that the maximum transaction occurred in 2005 & 2008 respectively. So, it can be said that the transaction is increasing day by day. Bankers need to be active in their field. They must attentive about what is going on actually in the market. After analysis the collected data, (response of the respondents) we finally found that basically interest rate, client service and transparency are vital issue in case of banking service. Most of the respondents emphasize on the point. These attributes have to be improved than competitors. Considering banking attributes, the respondents have ranked the banks using four point rating scale. Most of the respondents think and have opined that the Bank’s Environment, client service, security and mortgage, technological support  (ATM, Online Banking etc.) of Jamuna Bank Ltd. Naogaon Branch are need to be improved. The authority should keep an eye to these issues. It is also focused that the respondents actually interested about retail loan under different banner like home loan, education loan, professional loan and car loan etc. · The authority should give more attention to the promotional activities. As the people become very much busy, they have not enough time to come to the branch and know about the product. For promotion, the authority can take the following initiatives: Ø  Giving advertising in local newspaper for concerned Branch. Ø  Making Brochures, leaflets etc. highlighting brand name, criteria and put those on each and every desk of the branch. Ø  Making some poster and hanging on the wall and also some other places where the massage can be reached to the target people. Such as University for student loan, various shopping center and offices for household and auto loan. Ø  Giving advertising in local cable channel. More training should be conducted for the bankers to improve their analytical ability and professional standard regarding risk analysis and other tools and techniques in selecting the borrowers and analyzing the loan proposals. Authority should be delegated to the lower level with adequate measures for the necessary and follow-up for making the lending decision and recovery. Interest income occupies the major part of the total earning of a bank and bank’s profitability mainly depends on interest earning capacity, so bank should establish a research and development cell for the purpose of the lending analysis and recovery of loans. As bank’s main product is providing quality service. The authority should hire more dynamic personnel, who are able to demonstrate, motivate and explain the feature of their product’s services to the client. JBL should take the initiative for arranging workshop, seminar conference and training session frequently or monthly or at least quarterly basis. It will enhance the skill and expertise of the bank officials to face the challenges of competitive banking business.  JBL Credit Department should reduce its complex and rigid rules and regulation. The prevailing procedures require many formalities and take many papers etc. in case of taking loan. Bibliography ?Kotler, Philip (2001); Principles of Marketing, Eleventh Edition, Prentice-Hall of   India Private Limited, New Delhi. ?Malhotra, Naresh (2004), Marketing Research, Fourth Edition, India: Pearson Education. ? Kotler, Philip (2005), Marketing Management, Eleventh Edition, India: Pearson Education. ? Boyd, Harper, (2002); Introduction to Marketing Research, Seventh Edition, India: AITBS,   ? Zikmund, William G., Business Research Methods, Seventh Edition, Thomson, South-Western. ? Zeithaml, Valarie A. & Bitner, Mary Jo (2007-08), Service Marketing-Integrating Customer Focus Across The Firm, Fourth Edition, Tata McGrraw Hill Edition. ? G. 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