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1.0 Introduction

1.2 Objectives of the report:

The main objective of the study is to gather knowledge about the banking activities and evaluate the scenario of the Dhaka Bank Limited. To achieve these main objectives, the study seeks to realize the following:

· Finding out the working process of “Reconciliation Unit” performed by the unit members.

· To get the real life experience in the banking sector and by doing that want to expand the span of  practical knowledge.

· To build up the pillar for career in near future.

· To know more about the current situation of the bank.

1.3 Scope:

This report is highlighting the major functional area of Reconciliation unit of the Dhaka Bank Limited. But due to shortage of time it is not possible to mention each and every aspect of the particular unit.

1.4 Methodology:

The information used to prepare this report has been collected from practical knowledge, direct conversation with officers, by observation of unit activities, annual report of DBL, job description of each employee of the unit, DBL’s website and other various websites.

1.5 Limitations of the report:

There are some limitations that faced to complete the internship and make this report.

Those are:

· Load at the work place was a barrier to collect information for this report. Although the unit members have been very helpful, it was very difficult for them to find time for me as they were very busy with their assigned works.

· Due to lack of experience and as the work is totally new task for there may have faults in the report though have given maximum effort to avoid any kind of mistakes.

· Bank policy did not permit to disclose various information’s.

· Data and information about Reconciliation unit is not available in DBL’s website.

· Another problem was time constraints. The duration of internship program was only 12 weeks. But this time is not enough for a complete and successful study.

2.0 Profile of Dhaka Bank Limited

2.1 Company Background:

Bangladesh economy has been experiencing a rapid growth since the ’90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers’ remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to channelize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Dhaka Bank Limited in the year 1995.

The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk 1,934,252,875 as on June 30, 2008. The total equity (capital and reserves) of the Bank as on June 30, 2008 stood at Tk 3,424,609,016.

The Bank has 44 branches, 2 SME Service Centers, 1 Business Center, 2 Offshore Banking Units across the country and a wide network of correspondents all over the world. The Bank has plans to open more branches in the current fiscal year to expand the network.

The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest technology and a team of highly motivated officers and staff.

In our effort to provide Excellence in banking services, the Bank has launched Online Banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank’s clientele through Online and Home banking solutions.

Dhaka Bank Ltd. is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments. – dhakabankltd

2.2 Mission:

To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.

2.3 Vision:

At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments.

2.4 Goal:

Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of our vision – Excellence in Banking.

2.5 Values of the Bank:

1. Customer Focus

2. Integrity

3. Team work

4. Respect for the Individual

5. Quality

6. Responsible Citizenship

– Annual Report 2008

2.7 Corporate information of DBL:

Name of company Dhaka bank limited
Legal form a public limited company incorporated in Bangladesh on 6th April 1995 under companies act1994 and listed in Dhaka stock exchange limited And Chittagong stock exchange
Date of commencement July 5, 1995
Registered office Biman Bhaban (1st floor)

100 Motijheel c/a, Dhaka 1000, Bangladesh

Telephone +880 2 9554514, 9571006-10
Tele fax +880 2 9556584, 9571013
Swift (Society for worldwide interbank financial telecommunication)code DHBLBDDH
Auditor’s Ata khan & Co Chartered accounts
Tax consultant Howladar,Yunus & co. Chartered account
Managing director Shahed Noman
Company Secretary Arham Masudul Huq

Table 01: Corporate information – Annual Report 2008

3.0 Reconciliation

3.1 About Reconciliation:

The process of reconciliation is essentially a procedure for substantiating the value and timing of cash movements for an entity, a procedure which in itself adds and a strong level of assurance about the accuracy and completeness of the accounting records and which consequently adds credibility to the whole accounting system itself. There are two kinds Reconciliation we can see.

Those are:

1. Bank Reconciliation

2. Account Reconciliation

Reconciliation is very important for both bank and account. Now we will observe the impact of the Reconciliation on both of these occasions. – shvoong

3.2 Bank Reconciliation:

Bank reconciliation is the process of comparing and matching figures from the accounting records against those shown on a bank statement. The result is that any transactions in the accounting records not found on the bank statement are said to be outstanding. Taking the balance on the bank statement adding the total of outstanding receipts less the total of the outstanding payments this new value should (match) reconcile to the balance of the accounting records.Bank reconciliation allows companies or individuals to compare their account records to the bank’s records of their account balance in order to uncover any possible discrepancies. Discrepancies could include: checks recorded as a lesser amount than what was presented to the bank; money received but not lodged; or payments taken from the bank account without the business’s knowledge. A bank reconciliation done regularly can reduce the number of errors in an accounts system and make it easier to find missing purchases and sales invoices. – Wikipedia

3.2.1 Importance of Bank Reconciliations:

1. Bank reconciliations may uncover differences that may need further investigating.

2. Bank reconciliations help to safeguard cash by detecting errors on the part of the bank and/ or the municipality when recording activities in accounts.

3. Bank reconciliations can make us aware of recording errors and other problems more quickly by enabling us to isolate the problem.

4. Bank reconciliations help to create stronger internal control, whereby accountability over cash assets is greatly enhanced.

5. Bank reconciliations ensure that account balances are accurate, and that they reflect the true financial position of the municipality, so governing bodies can make more informed decisions. – osc

3.3 Account Reconciliation:

The act of confirming that the balance in one’s checkbook matches the corresponding bank statement. – srcor

3.3.1 Importance of Account Reconciliation:

It is important to reconcile the records in our account with the report that the bank has provided to us. There are several reasons for this. One is that we can see if the bank has made a mistake in our account. We might find deposits or withdrawals that we have not made. We might also find that we have made a mistake in our own records. It is possible to add or subtract incorrectly, or to enter a deposit or withdrawals incorrectly.

If we don’t have accurate information about the amount of money in our account, we cannot make accurate financial choices. – khatiar2012

3.4 Purpose of Reconciliation:

It’s important to go through the process of bank reconciliation. If we don’t, we are taking few risks. Without bank reconciliation, we may not have a clear idea of how much cash is available in our account. We might bounce checks and incur overdraft charges. With electronic check clearing, we don’t have much time to get funds into our account when we write checks.

Bank Reconciliations are usually done once a month. They are done so that the company knows how much money is in their bank accounts. Sometimes it may take a little while for the bank to clear a check, so once the company gets their bank statements they will look up what has cleared and what hasn’t and then will reconcile the account so they will know how much they have. – anserbag

3.5 Differences between entities records:

Differences between an entity’s records for a particular period and the bank’s records for the corresponding period can arise for a variety of reasons, which fall into the following main categories :-

3.5.1 Timing differences:

– Different period close off dates- time taken for payments issued to reach banking system

– Receipts in bank not notified to accounting office in same period

– cut off differences at separate stages in the bank reporting chain

3.5.2 Errors in the accounts of Government of Bangladesh offices:

– Individual numerical mis-postings or transcription errors
– Errors of addition of totals
– Errors of omission i.e. some transactions not recorded
– Errors of commission i.e. some transactions recorded which should not be included

3.5.3 Errors in accounting statements from the banks:

– Individual numerical miss-postings or transcription errors
– Errors of addition of totals
– Errors of omission i.e. some transactions not recorded
– Errors of commission i.e. some transactions recorded which should not be included

3.5.4 Deliberate misstatement:

– Postings have been altered or adjusted for no accounting purpose

– Entries have been falsified to conceal fraud

– Collusion to misrepresent transactions

– khatiar2012

3.6 Reasons of having improper bank reconciliations:

1. Only performed end of year reconciliation

2. Posting incorrect information

3. Not posting information at all

4. Lack of proper training

5. Supportive documents not maintained

6. Not recording activity in a timely manner

– osc

3.7 Major Elements of the Bank Reconciliation Problem:

· The overall issue of complete bank reconciliation is composed of numerous individual data inter-relationships between the various banks, the local accounting offices and the various departmental offices operating under the CHIEF ACCOUNTS Officers. Differences in cash movements reported can and do occur in all of these individual areas.

· Traditionally, within certain sections of the Government of Bangladesh, there exists (often for understandable reasons) an over-reliance on the data being furnished by the various banks, which is often manifested in the imprudent assumption that data supplied to the Government of Bangladesh by the banks is accurate and complete. Evidence suggests that this is far from the truth and that there are regular errors, omissions and mis-statements from data transferred within both the Sonali and Bangladesh Bank networks and from transfers between the two.

· Control & Suspense accounts are misused and not cleared on any regular basis. The lack of a systematic approach to the maintenance and regular clearing of these accounts contributes significantly to the differences recorded between bank and Government of Bangladesh figures, and this whole area is a major part of the problems being faced.

· Widespread confusion still persists about the number of Government of Bangladesh bank accounts and their operation in the overall process.

· A number of Government of Bangladesh departments and other agencies have access to commercial bank accounts and their impact on the reconciliation process is difficult to evaluate.

· The banks within the Government of Bangladesh processing cycle are currently obliged to sort and classify individual transactions by Ministry and to assign a ministry classification code to the appropriate bank posting. This creates an additional workload which inevitably contributes to misclassifications and mispostings of cash amounts.

· The impact on the reconciliation process of commercial and quasi-commercial Government organisations (e.g. Postal, T & T, Railways) that operate accrual accounting systems in the generation of their accounts.

· The Bangladesh Bank maintains the one Government of Bangladesh account by stating a split between ‘No 1 Account and Railway’ on the one hand and ‘No 2 Account (Food)’ on the other. This distinction is not observed or recognised in the monthly CGA accounts.

· Opening & closing bank balances at the year-end have not been reconciled since Bangladesh achieved independence in 1971. Both the Bangladesh bank and the Government of Bangladesh submit balances to the respective authority which are at significant variance with each other. This totally obscures the scale of the bank reconciliation problem on a year-on-year basis, since the balances brought forward are included in the respective balances of each as they are stated in the Monthly accounts.

· ‘Ways and Means Advances’ i.e. loans, usually on a short-term basis, from the Bangladesh Bank to the Government of Bangladesh account to cover ‘temporary’ shortfalls are not reflected in the Government of Bangladesh accounts. Consequently, negative cash balances are frequently reported in closing and opening figures.

– khatiar2012

3.8 Suggestions for performing Reconciliation function properly:

Here are some certain suggestions of how we can perform the functions relative with the Reconciliation:

· Bank and cash reconciliations should be performed monthly to compare bank balances to balances in the general ledger cash accounts. This is done to ensure accuracy and accountability for all cash transactions.

· Preparing monthly reconciliations and having timely record keeping will allow all entities to find and investigate errors quicker.

· Someone other than the person responsible for completing monthly bank reconciliations should monitor account balances and statements to ensure more accurate and effective internal control.

· Accurate records will keep both officials more informed, and allow them to make better financial decisions. – osc

In view of the above, it is evident that in addressing the area of bank reconciliation then, it is necessary to look at all these individual interfaces and to construct, in a systematic and methodical way, some usable formula whereby all the transactions in these flows can be balanced and reconciled. In a double-entry accounting sense, the end result must be that all the entries, of the entire parties total to zero – that is to say, that the total receipts and the total payments reported by the banks in any given period are exactly equal to the total payments and total receipts reported in the Government of Bangladesh’s book-keeping records. Any distinction from this practical reality implies that full and complete reconciliation has not been achieved and consequently the accounts, of either or both parties, contain errors.

– khatiar2012

4.0 Reconciliation Unit of Dhaka Bank Ltd.

4.1 Reconciliation Unit:

Reconciliation Unit of the Dhaka Bank Limited is the ending or final check point of DD (Demand Draft) transactions. This is the unit which is working as a clearing house of Dhaka Bank Ltd. After the clearance from this unit no one from Dhaka Bank Ltd. can challenge on any transaction. But peoples from outside can challenge after the clearance of this unit.

Reconciliation basically takes place by matching the banks’ book that is Dhaka Bank Ltd’s internal book or ledger with outside sources external book or ledger.


Figure 01: Function of Reconciliation Unit – Reconciliation unit

4.2 Hierarchy of Reconciliation Unit of DBL:

This is hierarchy of the reconciliation unit of the DBL. From here we can see everyone from the principal officer to the assistant officer report directly to the VP and the unit in-charge.

Figure 02: Hierarchy of Reconciliation Unit – Reconciliation unit

4.3 Job Description:

This is the list of the functions which, members of reconciliation unit are performing currently:

VP & In-charge:

· Monitoring all suspense GL heads of all branches

· Facing audit and audit related issues

· Monitoring the reconciliation of accounts with different local banks maintained by branches.

Principal Officer:

· Authorization of all Nostro matched entries

· Authorization of all Liquidation and Matching of DD of wage earners remittance

· Authorization of BBK taka related transaction

Senior Officers:

· Correspondence with branches

· Bangladesh Bank an Nostro Correspondents

· Monitoring all suspense GL heads of all branches, customer ledger and GL

· Correspondence with branches and IT regarding different GL heads problem

Officer and Assistant Officer:

· Upload Nostro account statement through SWIFT

· Nostro account statement input

· Auto and manual reconciliation of Nostro accounts

· Querying and solving of current unmatched entries

· Preparation of monthly quarterly report

· Correspondence with operations division about outstanding entries

· Reconciliation of Bangladesh Bank (FCY) accounts

· Follow up exchange for clearing related GL

· Liquidation and Reconciliation of DD of Sonali Bank wage earners remittance

· Reconciliation of UCBL, Janata Bank LO and Corporate Br., Dutch-Bangla Bank LO and NBL LO and Sonali Bank LO

· Reconciliation of BBK taka account

· Settlement of transactions regarding Sanchaya Patra

– Reconciliation unit

4.4 Data Analysis (Last 4 Years):

I want to show the bank’s last four years remittance inflow. Because these are the remittance actually reaches to the ultimate beneficiary as a Demand Draft, which I have reconciled in my internship program.

Graph 1: representation of remittance inflow of the year 2006 – F&A Division

From the chart of year 2006, we can see that maximum number of remittance came in November. And the amount is over $1,40,00000.00 and the minimum number of remittance came in the month of October that is over $4,000,000.00. Average number of remittance came all throughout the year is $1,05,40496.26.

Graph 2: representation of remittance inflow of the year 2007 – F&A Division

From the chart of year 2007, we can see that maximum number of remittance came in November. And the amount is over $1,60,00000.00 and the minimum number of remittance came in the month of August that is all most $6,000,000.00. Average number of remittance came all through the year is $ 99,03,768.09.

Graph 3: representation of remittance inflow of the year 2008 – F&A Division

From the chart of year 2008, we can see that maximum number of remittance came in May. And the amount is over $1,60,00000.00 and the minimum number of remittance came in the month of August that is all most $8,000,000.00. Average number of remittance came all through the year is $1,13,91762.16.

Graph 4: representation of remittance inflow of the year 2009 – F&A Division

From the chart of year 2009, we can see that maximum number of remittance came in January. And the amount is over $1,20,00000.00 and the minimum number of remittance came in the month of November that is over $1,000,000.00. The reason behind this very low amount is I have collected this particular data at the beginning of the month. Average number of remittance came all through the year is $ 85,18,996.75.

4.5 Four Years at a Glance:

Graph 5: representation of remittance inflow of the year 2006-2009 – F&A Division

From the pie chart we can see the particular amount of remittance came throughout last four years. Here we can see that in the year of 2008 maximum amount of remittance came to the bank that is $13,67,01145.94 and minimum amount of remittance came in 2009 that is $9,37,08964.29. But here I want to declare that the amount of the year 2009 is till the beginning of the month of November. It will increase later after the end of the month of December. And the average number of remittance came in these four years is $11,89,35302.62. – F&A Division

4.6 Reasons of the variation of the monthly inflow:

There are some reasons for which the monthly total amount of remittance varied month to month. The reasons are:

· Living cost of the wage earners

· Rate of Dollar

· Shortage of the particular branch

· Time period

When living cost goes up wage earners cant sent much money to the beneficiary, because they all ready have spent more in that particular country where they are working currently. Secondly the sender of remittance will send their money through the exchange house, who are offering better rate from the DBL. If DBL’s offer is not good enough to the money sender, obviously he/she will switch to other exchange house and other bank. One big problem for the DBL is the shortage of branches. In the remote area where the bank don’t have any branch remittance sender will send money through other bank who have their branch in that area. This problem is making the amount lower. Last reason is some time sender send remittance after two or three month in a bulk. So the amount varies month to month. It is clear that if they send much money all together after few months the amount will certainly goes up, but the amount will go lower in those months when they are not sending any money.

4.7 List of Exchange Houses:

This is the list of exchange house with the geographical position, where DBL has their own account for the exchange of money. The bank is engaged with 18 exchange house at present. Most of the exchange houses is situated in Dubai, but exchange houses from USA and UK is also available.

Serial Number Name of Exchange Houses Geographical position
1 Placid NK Corporation USA
2 Rupali Exchange Co. USA
3 National Exchange Co. UK
4 Neno LLC USA
5 Habib Exchange Co. Dubai
6 Federal Dubai
7 Lari Exchange Dubai
8 UAE Exchange Dubai
9 Express Money Dubai
10 Route of Asia (GBP) UK
11 Route of Asia (USD) UK
12 Wall Street Exchange USA
13 ICICI (USD) India
14 ICICI (GBP) India
15 Deshi Exchange (USD) Dubai
16 Trance-fast Remittance Dubai
17 Al-ahalia Exchange Dubai
18 GCC Exchange Dubai

Table 02: List of Exchange Houses – F&A Division

4.8 The Channel of DD inflow:

Graph 06: Channel of DD inflow

This is the graphical presentation of DD inflow. If anybody wants to send money to his/her relatives, he or she must have to send that money in a proper channel. He/she can’t send any kind of currency directly to the receiver or beneficiary. The currency only can go to its final receiver through legal source, which is through a bank.

Suppose Mr. X wants to send money to his family by DD. First he has to deposit that money into a Bank which is situated in other county where he is working and in which Dhaka Bank Ltd has an account. After that, abroad bank will send those FCY to Dhaka Bank Ltd. The Dhaka Bank will receive the FCY and will convert those into LCY. The bank will issue a DD paper to the receiver.

Suppose Mrs. Y is the beneficiary of Mr. X. She has an account in Janata Bank Ltd. The Dhaka Bank will issue the DD paper on the account of Mrs. Y which is in JBL. But on the paper there is portion on which it is mentioning that “Drawn on, Sonali Bank, Gazipur branch”. It means Sonali bank will pay on to JBL on behalf of DBL. Finally, JBL will collect the LCY from Sonali Bank Ltd and will pay to the ultimate receiver of beneficiary

4.9 Accounting for the DD transactions:

We will now see what the accounting impact of the following DD transaction is. Main object of find out the impacts are to find out what will be debit and what will be credit. We will see here the impact on various entities.

Earnings in the a/c of exchange house:

FCY Debit 200000

LCY Credit 200000

At the time of payment of DD:

NRTA Debit 200000

DD payable Credit 200000

When Soanli Bank pay to ultimate receiver:

DD payable Debit 200000

Soanli Bank Credit 200000 – Reconciliation unit

5.0 Report of work area

5.1 Working process of Reconciliation:

Graph 07: Working process of DD Reconciliation

· 1 trace = 30 DD transections.

5.1.1 DD Outstanding:

Figure 03: DD Outstanding Statement -Reconciliation unit

This is the first step of the DD transaction reconciliation process. This is the statement send by the Sonali bank. This is also known as DD outstanding statement. The most important parts of this statement are DD numbers,date, branch name,DD amoount,Commission, vat, P & T and the total amount debited.

5.1.2 Search the DD numbers:

In second step we have to search the DD number from the excel sheet where all the DD transactins are present. By choosing first search from microsoft excel we have to put the DD number first and next we have to press search. Then we can see the every information about a transaction. After checking that the DD amount is right with the DD number we have to give trace number. Mainly in a statement there are thirty transactions remains. So we have to find out those thirty transactions with the exact amount and have to put a particular trace number in those transactions.

Figure 04: Excel sheet where we search DD numbers -Reconciliation unit

5.1.3 Copy and print out of the particular trace numbers:

In this step we just have to find out about a particular trace number. We can do that by selecting trace numbers from the top of excell sheet. We can find every single trace number we have given before in the excell sheet. Finally we have to take print out of every single trace numbers for further progression.

Figure 05: print out of a particuler trace number -Reconciliation unit

Working process (contd.) :

Graph 08: Working process of DD Reconciliation

5.1.4 Retail posting by using software (Flex cube):

In this step first we have to select liquidation mode after that we have to put the serial number, next we have to ask for authorization for the transaction to the principle officer or senior officer. Secondly, we have to select the batch option first then we have to work with the incomplete Txns. Next we have to select authority granted transactions and have to submit, after that we have to put GL (general Ledger) number for the particular transactions. Finally we have to give request for the second time authorization.

There are two kind of authorization we have in the process, those are- double authorization and single authorization. The transactions those are older more than six month we need double authorization for those transactions. But transaction those are older less than six months need single authorization.

5.1.5 Match and search again:

In this step we have to match the amount according to the trace number and we have to put the trace number in every amount. From the credit option of the excel sheet we can find credit amounts existing in the DD outstanding statement. Main object of this step is to find out every amount according to their trace number in a particular date in which we posted the transactions before. At the end of this step we have to take a print out of every trace number we matched.

Figure 06: Downloaded excel sheet from Intranet after retail posting

Reconciliation unit

5.1.6 Corporate Matching:

In this statement first we have to make a statement called outstanding entries adjustment. In this statement we have to determine the amount which is estimated by adding commission, vat and P&T. After that we have to add the amount with the total amount of a particular trace paper. By adding the two amounts we will get the total amount debited and this is the external debit amount.

This is the last part of DD transaction reconciliation. This part is also known as RE manual matching. In this system we have internal debit and credit and external debit and credit. We have to match the internal credit amount with the external debit amount. At this moment, from the print out taken in the fifth step, there is a list of entry sequence number. These sequence numbers are also present in the corporate matching software system. We have to find out the amounts of a particular trace number according to the sequence numbers in a particular date. The sequence number and amount must have to be same in both print out sheets and software system. Finally, when the external debit amount matches with the internal credit amount the DD transaction reconciliation process comes to an end successfully.

6.0 Problems, Recommendations & Observations

6.1 Problems and Recommendations:

Dhaka Bank Limited is one of the fastest growing banks in our country and the bank is contributing a lot to our economy with their banking operation since 1995. During my internship at Reconciliation Unit in the head office of DBL, by identifying some problems and taking interview from the unit members I would like to give my personal opinion about the ongoing condition. For the improvement of the Reconciliation unit I think the following steps should be taken:

· During the working period I found that most of the time the banking activities got slower because of the central server and the data base system. Some time the server got too slow and sometime the database software doesn’t work properly. For this we had to wait till the server gets faster again. So, I suggest for updating the database software as well as the entire networking system. Defected computer equipment also should be replaced.

· Unit In-charge’s office is too way from the unit’s working place. I think his office room should be somewhere near the unit’s work place. It will help him to supervise and to do communication with the employees who are working under his directions. The most important is that he can observe the unit member performance.

· In Reconciliation Unit every employees have to do work with computer. They had to gaze towards the monitor consistently for a long time. It caused eye burn and headache for the employees. So, I think black cover screen can be a good option to remove the problem.

· Some time employees’ needs others help to continue their function in data base software system. Their computer turns into hang if they work for a long time or give input of too much information. Then the employee with hanged computer asked others to make him/her clear. For the waiting of clearance, it spoils some time. A process should be introduced so that the employees can make him/her clear as early as possible.

· Some time the work place become hot because of the problem in air condition system. It created a discomfort able environment, employees then used table fan. Defected air condition machines should be replaced.

· Some time pending works created great pressure on the unit members. It seems like an obstacle to perform their daily activities properly. This reason hampers their general functions and they were also lost their focus too. So, I recommend here to the unit members to solve every single problem on due time. If they do so they can work in a pressure free circumstance.

· Another major limitation was the DD drawn statement sent by Sonali Bank. In those statements Sonali Bank officials made lots of mistakes with their hand writings. Their writings were very vague and full of over writings. Some of the words and amounts they wrote were impossible to understand. Even senior officers and officers of the unit got confused that time. It was also not possible to call them and ask them what is correct word or numbers are.

6.2 Observations:

During the working period in the Reconciliation unit I observed something which I think interesting and important too. I want to share my observation in my report that I observed during the office time.

· From this study I realize the difference between the theoretical knowledge and the practical knowledge. Theoretical knowledge teaches us how to deal with the working report on “Reconciliation Unit” of Dhaka Bank Limited. But practical knowledge gives the basic knowledge about how to go with real life experience and how to perform the activities.

· The officials of this unit give me a positive view of organizational relationship at work place by cooperating me in all the aspects. They always helped me to learn different dimensions of work in banking sector.

· Here the officials are too serious about their job and they work hard all the time and they spend more hard time during the stressed occasion. Lots of pressure comes up to the employees, for this reason by working and staying with them I learned how to work under pressure.

· In an organization formal attitude throughout the organization is necessary. But after working at DBL’s head office I learned that how the informal attitude helps the workplace to get efficient output from the workers and as well as motivate the clients. Informal attitude seems friendly to others, thus everyone works cheerfully and the clients are also responded positively.

· By working in the unit, I came to know how the unit maintains relationship with other banks. Because the unit works with the statements of Bangladesh Bank, Soanli Bank and many other banks.

7.0 Conclusion:

Among all the financial institutions banking is the most dynamic and influential one. In banking we can see the huge competition which is not present in any other sector of the business arena, particularly in the financial sector. Every single division of every bank is working with their heart and soul to provide the best service to its customer to gain the major market share and to lead the banking sector. So this unit is also doing what they should do to set the bank at the pinnacle of ultimate success.

Reconciliation Unit’s functions include all the DD transactions, those transactions accuracy and matching those transactions with Sonali bank’s statement. By matching all the transactions successfully with the Sonali bank DD statement, the unit is proving the accuracy of the DBL’s DD paying service to its huge number of customers without making mistakes. Even mistake of “paisa” is very significant and big error. The estimate is not proper until it shows accurate amounts. Reconciliation unit’s work is to match and solve all the errors and find out the correct amounts.


1. Company Background from:

2. Mission, Vision, Goal, Values of the Bank from: the Annual Report of the Dhaka Bank Ltd 2008.

3. Reconciliation Unit of Dhaka Bank Ltd.

4. Finance and Accounts Division of Dhaka Bank Ltd.

5. About Reconciliation from:


6. Bank Reconciliation from:

7. Importance of Bank Reconciliation, Reasons of Having Improper Bank Reconciliation, Suggestions for performing Reconciliation function properly from:


9. Account Reconciliation from:

10. Purpose of Reconciliation from:

11. Importance of Account Reconciliation, Difference Between entities record, Major Elements of the Bank Reconciliation Problem from: