Report Of Pubali Bank Performance Evaluation

view with charts and images

Chapter 1


After the liberation the new born country Bangladesh started a banking system according to her needs. To provide banking facilities to the more people even to remote villagers. Government nationalized the banking sector. But the requirements were far away from the system which leads to need of privatization. Even privatization failed to show the desire efficiency for which the banking sector was studied and developed under FSRP (Financial Sector Reform Program). Massive changes were occurred in the banking system-freedom were given to banks, legal infrastructure was strengthen, coming of foreign banks was encouraged but the core two problems i.e. customer oriented service and sound loan recovery could not be settled.

Objective of the Study

1.1 Having described the above background the report tries to focus the seven weeks orientation in the B.B. Avenue branch of Pubali Bank Limited, observation during the internship and the general process of banking of banking in different departments like General banking, Loans and advance division and foreign Exchange etc. The main objectives of the report are –

· To comply with the entire branch banking procedures.

· To make a bridge between the theories and practical procedures of banking day to day operations.

· To analyze the performance of the branch as well as Uttara Bank Limited as a whole.

· To have some practical exposures that will be helpful for my courses in the MBA program.

Methodology of the study

The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study the data sources are to be identified and collected, they are to be classified, analyzed, interpreted and presented in a systematic manner and key points are to be found out. The over all process of methodology is given in the following page in a form of flow chart that has been followed in the study.

A. Data sources: Essential data sources both primary and secondary are identified which will be needed to complete and work out the study. To meet up the need of data primary data are used and study also requires interviewing the official and staffs were necessary. The report also required secondary data.

Information collected to furnish this report is both from primary and secondary sources:

i) The primary sources are:

· Face to face conversation with the officers

· Practical desk work

· Relevant files study as provided by the concerned officers.

ii) The Secondary sources are:

· Annual reports of PBL.

· Periodic reports of PBL.

· Annual Reports of Bangladesh Bank (BB).

· Publications of Bangladesh Bank (BB).

· Office circulars of PBL.

· Publicly published documents.

· Relevant books, newspapers, journals, etc.

B. Collection of data: Primary data are collected by using interviewing technique. The reports are an exploratory research and for qualitative survey open ended question were ask to the Bank official.

C. Classification, analysis, interpretations and presentation of data: some arithmetic and graphical tools are used in this report for analyzing the collected data and to classifying those to interpret them clearly.


The limitation of the study is defined by the extensive of the facts covered by the study & those that left out. However, these limitations can be presented in the following lines:

  • The lack of intellectual thought & analytical ability to make it a perfect one.
  • I have to offset with the quality due to tome constraint, which apparently seems to be the most sever limitation.
  • Another limitation of the report is non availability of the most recent data & information of different activities of pubali banks policy of not disclosing some data & information for some reason. Which could be very much useful.

Chapter 2

Bank Profile

History of Pubali Bank Limited

After liberation the eastern mercantile bank was converted into Pubali Bank and was taken under the government management because the government policy was nationalized of all financial institutions. The objective was strengthening the rural economy. The result of the policy was a mixed one. In late 70s when the government wanted to establish a market oriented economy with less public sector role. As pert of the privatization and liberalization process this bank was denationalized in the year 1983. It started function as a public limited company Limited and registered as Pubali Bank Limited. All liabilities and asset of the bank is transferred to the limited company.

The bank was incorporated under the Companies Act (Act VII) of 1913 as a limited company having its Head Office in Dhaka. The Bank started functioning with the approval of Bangladesh Bank under the guidelines, rules and regulations given for scheduled commercial banks in Bangladesh.


To excel as private Commercial Bank in Bangladesh with meticulous observance of rules and regulations and ensure commitment to corporate social responsibility.


To be the most admirable private commercial Bank in the country. To get recognition as a dynamic, innovative and customer supportive Bank. To maintain continuous & steady growth with utmost transparence and to diversify development of resources. To enhance continuous development of information & technology to meet the demand and challenges of the time.

Corporate Objective

· Growth

· Value addition


· Quality Standard


· To match:

Corporate objectives, with

Ownership and accountability

· To increase our value by releasing each individual’s true potentials

Organization Structure of PBL

Pubali Bank Ltd expanded as a largest commercial bank in the country. Its operational networks cover almost every pert of the country including the major cities, rural townships, which are prospective business centers in Bangladesh.

The bank was established primarily as private bank. After liberation it was nationalized and it remained so for quite a long period. Though it has been denationalized again and has gone back to its private norm it could not get rid of all the rules and norms of nationalized bank. The bank is run by an excellent management team under the direct supervision of a competent board of directors. The board of directors comprises total fourteen members headed by the chairman. Mr. Hafiz Ahmed Mazumder is the present chairman of the board. The Managing Director (MD) heads management team. Under him a General Manager (GM) heads each department of the bank. Mr. Helal Ahmed Chowdhury is the present MD of PBL. There are total twelve divisions in the Head Office of PBL. List of various divisions of PBL is given below:

Boards of Directors

Mr. Moniruddin Ahmed

Mr. Sk. Wahidur Rahman

Mr. Monzurur Rahman

Mr. Giashuddin Ahamed

Mr. Syed Moazzem Hussain

Mr. Ahmed Shafi Chowdhury

Mr. Fahim Ahmed Faruk Chowdhury

Mr. Habibur Rahman

Mr. Mustafa Shariar Ahmed

Mr. Mohammed Yaqub

Mr. Muhammad Faizur Rahman

Ms. Rumana Sharif

Divisions of Head Office

Sl# Division Functions
1. Board & MD’s Secretariat Division Deals with Shares
2. Human Resource Division Recruitment, promotion, training, Disciplinary action, dismiss, discharge, retirement, pay and allowances, career plan, trade union etc.
3. Establishment division Engineering, transport, telephone, telex, fax, security system, real estate etc.
4. Credit Division All sorts of credit, its allocation, estimation, sanction, etc.
5. Credit Monitor and recovery Division Monitoring of credit, classification, evaluation and recovery of credit etc.
6. International Division All types of works with foreign banks or organizations.
7. Central Accounts Division Correct accounts, financial evaluation and forecast of future financial events of the bank.
8. Branch Operation Division Management of branches, control, monitoring and evaluation of performance of branches of the bank.
9. General Services & Develop Division Looks for improvement services, sets strategy for business promotion and development of the bank.
10. Audit Division Conduct internal audits of the branches.
11. Information Technology Division Mainly looks after the computer system, provides necessary support to the branches in regards to computer and electronic equipments.
12. Lease Financing & Law Division Deal with the lease financing and help the bank to move with its legal aspects.

Divisions Of Head Office ( Organizational Structure )

Division Name Floor Of Head Office Building
Board Division 3rd Floor
Human Resources Division 4th Floor
Establishment Division 12th Floor
Engineering Division 4th Floor
International Division 5th Floor
Credit Division 6th Floor
Credit Monitoring & Recovery Division 7th Floor
Business Promotion Division 8th Floor
Audit Division 5th Floor
Central Accounting Division 9th Floor
Information Technology Division 10th Floor
Branches Operation Division 11th Floor

Registered Head Office

Pubali Bank Bhaban

26, Dilkusha Commercial Area

Dhaka – 1000, Bangladesh

Post Box No. 853

Cable: pubali peak, Dhaka.

Telex: 675844 Pub BJ/632240 UCBL- H- O- BJ

Fax: 880-2-9564009

PABX: 9551614



Financial Analysis of Information

As at 31st December (In million taka)
2004 2005 2006 2007 2008
Authorized Capital 5000.00 5000.00 5000.00 5000.00 5000.00
Paid-up Capital 200.00 400.00 1200.00 2100.00 2940.00
Reserve Fund & other Reserve 2107.76 2481.21 3327.50 3832.09 4606.82
Deposits 39789.71 44443.03 48675.93 57996.82 73016.51
Advance 27542.33 32639.68 40386.65 50549.17 61788.15
Investments 5742.12 5536.84 4982.10 5556.58 8375.59
Import Business 18024.30 26033.80 37316.50 48345.41 58009.10
Export Business 13670.50 15721.10 17701.80 19907.50 24795.65
Bridge Finance 7.80 7.29 7.14 6.89 6.89
Total Income 3455.32 4435.90 5494.49 7087.63 9009.25
Total Expenditure 2830.41 3063.27 3684.43 4145.66 5563.39
Pre-tax Profit 244.90 1042.63 1810.06 2941.97 3445.86
Net Profit 134.70 573.45 845.53 1353.51 1515.23
Total Assets 46593.28 52671.44 58401.14 71560.66 89884.70
Fixed Assets 545.40 546.48 1369.07 1367.23 1383.36
Other Information’s
Number of Employees 4749 5088 5141 5270 5321
Number of Shareholders 6562 7591 11697 19009 24153
Number of Branches 350 350 356 361 371
Earning per ordinary share (Taka) 67.35 143.36 70.46 64.45 51.54

Bank’s Deposit of PBL [Million]

Bank’s Advances [Taka in Million]

Bank’s Profit [Taka in Million]

Chapter 3

Branch Profile

Location of Principal Branch

B.B. Avenue Branch of Pubali Bank is situated in the 2nd & 3rd floor of 5, B.B Avenue, Dhaka-1000, Bangladesh. The office is highly decorated and it is the most important and busy branch maintaining all types of banking transactions. There 38 employees are working in this branch.

Distribution of Employees

Deputy General Manager (DGM) 01
Assistant General Manger (AGM) 02
Senior Principal Officer (SPO) 03
Principal Officer (PO) 03
Senior Officer (SO) 05
Officer 06
Junior Officer 07
Prob. Officer 02
Computer Operator 01
Caretaker 04
Chief Zamader 01
Driver 01
Messenger-cum-Guard 01
Armed Guard 01

Organ gram of the Employees

Branch Financial Position as on Date 31st December, 2009

Cash & Bank Balance 5091214.00
Loans and Advances 537407727.97
Deposit 423150109.58
Bills Payable 12826445.29
Bills Discounted & Purchase 32492769.00
Fixed Asset 4298340.40
Other Asset 3234830.77
Total Expenditure 42594478.05
Total Income 57213746.98
Net Profit 14619268.93

Chapter 4

General Banking


General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’.

According to World Bank, the general people understand the depositing and withdrawal of money and credit financing. But Bank performs numerous types of services. To deal these services bank has to maintain many register/ ledger and documents. Some different jobs that waive the General banking has shown in the following diagram

Token Issue

The token issue department uses a register book and different types of tokens decorated with different letters for different types of accounts. There are two types of tokens. One is for savings A/C and another is current / other accounts.


The client will encash money from his account will show his cheque to the respective officer of the desk. The officer will give him a token with particular number after being sure of his two signatures on the back of the cheque. The officer will give him a token with a particular number on the back of the cheque. The client will then proceed on for encashment. The officer then gives an entry about the token number, account name and the amount in the column of the register book.

The token will be checked by the responsible officer for maintaining at the end of each business day. Tokens are then handed over to the supervising official concern to keep them in a locked box. Tokens are checked once a month by the supervising officer in charge wheather tokens is ok or not. When a token is lost it is informed to the head office for a matter of precaution.

Maintenance of the subsidiary register for receipt of cheques, drafts :

At the counter every cheque, demand draft and other credit instrument tender for the credit of the customers account will be delivered. Deposits received by post will sent by the receiving officer to the bills department against acknowledgment of the dealing officer. The dealing officer is concerned here about four types entries. They are

  1. Local Clearing
  2. IBC (Inter Branch Collection )
  3. SC (Short Collection )
  4. BT (Bank Transfer)

In case of local clearing one bank sends money by cheque or DD which will be collected in the name of the account holder of this branch. This cheque or DD will be be taken to the clearing house where agents of all banks exchange these instruments. Important thing is that the paying Bank must be in the local area (Dhaka). In case of IBC the branches must be of the same banks for short collection, the paying banker is in the area other than Dhaka whereas bank transfer will be between two accounts of the same branch.

The dealing officer of this desk should be aware of the following things about instruments:

    • Name of the account is very clearly written on the deposit slip.
    • Full particulars of the deposit instruments such as cheque numbers, name of bank, etc are properly recorded on the paying slip as required.
    • The pay in slip has been signed by the depositor.
    • Full particulars of the railway receipts and instruments of title goods, bills of exchange, invoice etc. associated with an inland documentary bill received from the depositors direct at the counter or by post from other branches/ banks endorsement thereon.
    • All cheques, bills and other instruments are crossed with crossing seal.

After categorizing all the instruments and checked out the preliminary mandatory things, the dealing officer gives entries in the appropriate column of subsidiary ledger for crediting the accounts.

Account Opening Section

When a customer want to open a deposit account in bank, he/she will have to go the A/C opening section to know the rules and regulations for opening account and to have the set of documents required. Since PBL is an authorized dealer it can open deposit A/Cs denominated both in Taka and approved foreign currencies.

Deposits are like raw materials out of which credits are created. Deposit accounts are one of the important sources of funds. In order to attract customers the banks offer different facilities to various types of account holders. Competition in accepting deposits takes two forms:

(a) Improvement in customer service

(b) Offer a higher rate of interest.

In our country PCBs and foreign banks are appreciated to attract deposit because of their superior customer services. PBL principal office branch with its traditions customer service approaches faces difficulties to draw attention of new customers.

Main functions of account opening are given below:

· To give answers to the queries regarding account opening

· To supply the appropriate type of account opening form

· To put a/c number from a computerized sheet on advice of new account

· To input date into computer from a/c opening form.

· To maintain and update the a/c opening file for different types of accounts.

· To maintain a register for cash type of recording details of a/c opening

· To supply deposit slip books and cheque book on requisition

· To act on request for closing and transferring of deposit a/c

· To act on request for closing and transferring of deposit a/c

Classification of Customer

a) Individual (personal)

b) Proprietorship (Sole traders)

c) Partnership firms (Register or Unregistered)

d) Joint Stock Companies ( Private Limited and Public Limited )

e) Municipalities/Municipal Corporations/Local Bodies etc.

f) Clubs / Societies / Associations /School / Colleges / Universities etc.

g) Executors /Administrators

h) Trustees

i) Illiterate persons

j) Constituted Attorney

k) Wage Earners

Different types of A/C of PBL B.B. Avenue Branch

1. Current A/C : Interest free and generously withdraw able

2. Saving Bank A/C: Interest bearing and checkable with some restriction

3. Short Term deposit: Usually interest bearing and with draw able on short notice.

4. Fixed deposit: Interest bearing and definite period like one year or six month.

5. Non Resident foreign currency deposit: All non residents of Bangladesh can open this interest bearing account in the form of term deposit with a minimum amount of $1000 or equivalent.

6. Private Foreign Currency A/C: Bangladeshi National residing abroad or foreign nationals may open this a/c with deposit mode from inward.

7. Convertible Take Amount: A type of non-interest bearing current a/c designed specially for foreigners living here.

8. Private foreign Currency A/C: Bangladeshi nationals residing abroad or foreign nationals may open this a/c with deposit mode from inward.

Documents required for opening new account

  1. Documents Common for all types of Account & Customers
    1. Advise of New Account
    2. Specimen signature cards
    3. Account Opening Agreement Form
    4. Photographs of Account Holder
    5. Deposit Slips Book
    6. Cheque book Requisition slips
    7. Letter of mandate is required where necessary.

Account opening procedure

  1. Applying in a printed application in a certain stipulated form printed by the bank itself.
  2. Supply a set of printed forms required for opening the account which will normally include

i) Advise of new Account

ii) Specimen Signature Cards

iii) Account Agreement

iv) Deposit slip Book

v) Cheque Book Requisition slip

  1. The account should properly introduced by any one of the following

i) An existing Current Account holder of the bank

ii) Officials of the Bank not below the rank of an Assistant officer

iii) A respectable person of the locality well known to the Manager or Sub- Manger of the Branch concerned.

  1. A number of photographs which must be duly attested by the introducer in front of the manager or responsible officer. The signature of the introducer must be attested. After being scrutinize the application and the manager or authorized officer may give his consent to open the account.
  2. A package with deposit book, cheque book with a unique A/C No. given to the Customer maintaining the A/C opening register book.

Precautionary Measures of A/C Opening:

  1. Soon after the opening of a new Account a letter of Thanks should be sent to the introducer.
  2. A letter of thanks as per prescribed should also be sent to the account holder immediately upon opening the account, under registered post with a/c for verification of postal address as well as genuineness of the Account holder.
  3. In case of a new account is opened a proprietorship / partnership firm, having local business address, a responsible officer of the branch will inform the firm to obtain the confidential report on the firm.

Formalities for opening Current A/C and STD A/C:

These accounts are meant for business firms and corporate bodies. Initial deposit requirement is Tk 5000 in addition to common documents required to open a saving a/c following additional documents will be required for depending upon the nature of the organization.

Joint Account of two or more persons

Mandate for Operation of Account: A clear authority by all the joint A/C holders containing instructions as to who will operate the account and how the account is to be operated should be obtained. The mandate should mention the name of the persons authorized to draw check. In case of death, insanity, insolvency of one or more of the joint a/c holders, the authority will cease to operate:

For sole traders:

i) Trade license

ii) A certificate with tax identification number from income tax authority

iii) Seal

iv) In case of current account an agreement to accept all responsibilities for all over draws, interest cost and expenditures

For Partnership firms:

i) Trade license

ii) Notarized deed of partnership

iii) A mended in agreement form regarding operation of the account signed by the entire partnership firm

iv) Sale/ Stump of the firms

v) 2 copy photo of all partners

For Private and Public Limited Companies

i) Memorandum and Articles of association

ii) Certificate of incorporation

iii) Certificate of commencement of business if it’s Public limited

iv) Copy of board resolution to open a/c certificate by the chairman and secretary

v) Power of attorney to operate a/c in favor of any one or more of directors.

vi) Balance sheet and income statement

vii) List of Directors and their address and chairman certificate.

Formalities for opening Private foreign currency A/C

Foreign Currency account may be opened in US dollar, Pound Sterling, Douche Mark and Japanese Yen. Credit may be made to this A/C against inward remittance from abroad. Usually this a/c operated like a current a/c but no checkbook are issued against his a/c. Withdrawals may be made through withdrawals slips. Interest may be paid on this a/c if it is maintained in the form of term deposit for a minimum of 90 Day’s Bangladeshis’ living abroad can open even without initial deposit. A nominee can be appointed.

Documents required: When an eligible person is interested to open an F/C account his passport is to be checked and signature verified. When he is staying abroad his signature is to be verified and attested by –

i) Bangladeshi embassy on that country

ii) His banker in this country

iii) Notary public of that country

Following documents are needed to:

i) Photocopy of 1st 4 pages of passport

ii) Photocopy of visa and work permit

iii) Nominees photo and account no.

iv) Declaration of source of income

Issue of Duplicate cheque book

Duplicate cheque book in lieu of lost one should be issued only when A/C holder personally approaches the bank with an application. Fresh Cheque Book in lieu of lost one should be issued after verification of the signature of the Account holder from the

Specimen signature card and on realization of required excise duty only with prior approval of manager of the branch. Cheque series number of the new cheque book should be recorded in ledger card signature card as usual. Series number of lost cheque book should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.

Closing of Account

Upon the request a customer an account can be closed. After received an application from the customer to close an Account, the following procedure are followed by a Banker.

The customer should be asked to draw the final cheque for amount standing to the credit of his a/c by deducting the amount of closing and other incidental charges.

In case of joint a/c the application for closing the a/c should be signed by all the joint holder.

Interest rate on deposit

Interest rate different types of deposit as prescribed by PBL head office from time to time irrespective of size of deposit

Type of Deposits Interest rates
a. Saving deposit 8.00%
b. Special notice deposit 6.50%
c. Fixed Deposit
3 Months 7.50%
6 months 8.00%
1year 8.5%
2 or 3 year 9.%

Learning of This Section

  • The signature of the account holder use in all banking activities.
  • The customer may appoint nominee who can handle his account in case of holder’s death even in special circumstances with the permission of the account holder.
  • Present and permanent address with father’s or husband’s name of the concerned account holder to be recorded very carefully.
  • The type of account, the prospective Customer wishes to open should be determined.
  • In case of proprietorship or partnership business account proper trade license in the name of business firm should be obtained..
  • The required Account Number for the Account from the Account Opening register should be obtained.
  • Signature and a/c number of the introducer and gets the signature properly verified by an authorized officer of the bank.
  • The deposit slip properly filled in and signed by the customer in duplicate should be collected.
  • Have to place the signature cards, advice of new account, a copy of deposit slip photographs and other necessary papers/documents etc in a file and obtain approval of the authorized officer for opening the new account.
  • Get each signature of the Customer/Introducer on the Advice of New a/c and on the signature cards admitted by the authorized officer of the Bank using a rubber stamp.
  • When delivering the cheque book account number, name of customer branch seal on each leaf of the cheque book have to check carefully..

Clearing Section

The Cheque Clearing Section of PBL principal office branch sends Inter Branch Debit Advice (IBDA) to the Head office on the receiving day of the instruments. The main Branch takes those instruments to the Clearing House on the following day. If the instrument is dishonored, Head office of PBL, sends IBDA to the PBL, Principal Office branch. The total procedure takes three days if everything goes orderly.

The Cheque Clearing Section of PBL, Principal Office branch sends Outward Bills for Collection (OBC) to the concerned Paying Bank to get Inter Branch Credit Advice (IBCA) from the paying Bank. If the instruments are dishonored by the Paying Bank, the Paying Bank returns it to the PBL, Local Officer Branch describing why the instruments are dishonored. The procedure takes around a week.

The Cheque Clearing Section of PBL, Principal office branch sends Outward Bills for Collection (OBC) to the concerned paying Branch to get Inter Branch Credit Advice (IBCA) from the paying returns it to the PBL, Local Office branch describing why the instrument is dishonored.

Local Remittance Section

Local Remittance is used to transfer of funds denominated in Bangladesh Taka between banks within the country. It is an order from the Issuing branch to the Drawee Bank/ Branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by Telex / Telegram and funds are paid to the beneficiary through his account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch. The cash department does remittance of cash. Instruments of local remittances at PBL branches are follows

Local Remittance

Telegraphic Transfer Demand Draft Pay Order

Telegraphic Transfer (TT)

Telegraphic Transfer is a quick mode of remitting funds over telex or Telegram. Now this term has used as Telephonic Transfer also which is faster than previous one for money transfer. Following points have to consider for the TT

  1. On receipt of T.T payment instructions the following entries are passed by the Drawee branch if the T.T is found to be correct on verification of Test Number.

i) Dr. PBL General A/C

Cr Remittance Awaiting Disposal- T.T Payable A/c

ii) Dr Remittance Awaiting Disposal-T.T Payable A/c

Cr Client’s Account/P.O. A/C.

If the beneficiary does not maintain any a/c with the Drawee Branch a P.O is issued in favor of the payee and sent to his banker/local address as stated.

  1. Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.T are to be properly recorded in this Register duly authenticated. A separate type of T.T confirmatory advice is sent to the Drawee branch on the same day. On receipt of the T.T Confirmatory advice/confirmation copy of telegram from the issuing branch, the particulars of the T.T are verified with reference to particulars already recoded in the T.T payable Register.

The Confirmatory advice are kept attached with the relative Ticket No further responding entry is required to be passed on receipt of such confirmation copy.

On payment of T.T the particulars are to be incorporated in the Extracts Responding Debit entries as usual as usual and sent to HORC.

Procedure of Issuing TT

Demand Draft ( DD )

Demand Draft is an instrument containing an order of the Issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself.

Precautions for Demand Draft

  1. Get the application form properly filled up and signed by the applicant.
  2. Complete the lower portion of the Application form meant for Bank’s Use.
  3. Calculate the total amount payable including Bank’s commission/charges etc.
  4. If a cheque is presented for the payment of the DD officer should get the cheque duly passed for payment by the competent authority and record the particulars of DD on the back of the cheque.
  5. If the purchaser desires his account with the branch to be debited for the amount of DD the officer should get the A/c holder’s signature verified properly, from signature card on record of the branch and debit client’s a/c for the total amount including commission charges etc.
  6. If cash deposit is desired, request the purchaser to deposit the money at the Teller’s counter.
  7. The teller, after processing the application form, cash or cheque, will validate the Application form.
  8. The first copy of the Application form is treated as debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the Applicant as customer’s copy.

Each branch maintains a running control serial number of their own for issuance of DD on each Drawee Branch. This control serial number should be introduced at the beginning or each year which will continue till the end of the year.

Procedure of issuing D.D

The Remittance Department maintains prescribed DD Issue Register. All the required particulars of all DD issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Draft of Tk. 50,000/- and above, branches shall put a test number in Red-Ink on the upper portion of the drafts so that the drawee branch can immediately make payment of the DD on presentation after getting the Test agreed, if otherwise found in order.

Issuing a Duplicate DD

Duplicate DD should not normally be issued unless thoroughly satisfactory evidence is produced regarding loss a draft. If the DD reported lost/stolen, a duplicate draft may be issued by the branch on receipt of a written request from the purchaser.

Before issuing a duplicate DD the branch should observe the following:

1. Verify the Purchase’ signature on the request letter from the signature appearing on the original application form.

2. Immediately issue a stop payment instruction to the Drawee branch under advice to Head Office and obtain confirmation of non-payment of the DD acquisition.

3. After the Drawee branch has acknowledgement the stop payment order and confirmed that the local draft in acquisition remains unpaid at their and confirmed that the local draft in acquisition remains unpaid at their end, the Issuing branch should obtain an Indemnity Bond on stamped paper/letter of indemnity branch should obtain an Indemnity Bond on stamped paper/letter of indemnity as per prescribed format from the purchase duly signed by hi,. The branch will therefore write to Head Office, for their approval to issue a duplicate draft.

4. The Head Office on receipt of request from the issuing branch will immediately issue a caution circular to all the branches regarding the loss of the local draft asking them to record stop payment.

5. The Head Office will therefore issue clearance to the Issuing branch for issuing a Duplicate draft in lieu of original reported lost.

6. O receipt of clearance from Head Office, the issuing branch will issue a completely fresh draft marking clearly the words duplicate issued in lieu of original draft no…………………. dated……………………….in bold letter on the top of the front page of the draft. The printer serial number on the draft should not however be struck off. Intimation should be given to the drawee branch furnishing full particulars of the Duplicate draft. In case of issue of duplicate foreign draft (F.D.D) the Reconciliation Department, Head Office (HORC) should also be informed.

7. The particulars of the duplicate draft resemble those of the original draft in all respects that is all the particulars to the duplicate draft must be identical with those in the original draft. No further IBCA is to be issued for the duplicate draft.

8. Prescribed duplicate issuance charge is to be recovered for issuing the duplicate and credited to income a/c.

Cancellation of Demand Draft

The following procedure should be followed for cancellation of a DD:

1) The purchase should submit a written request for cancellation of the DD attaching therewith the original DD.

2) The Signature of the purchase will have to be verified from the original application form on record.

3) Manager/ Sub-Manager’s permission is to be obtained before refunding the amount on cancellation.

4) Prescribed cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded. Commission/Postage etc. Charge recovered for issuing the DD should not be refunded.

5) The DD should be affixed with a stamps canceled under proper authentication and the authorized office’s signature on the DD should also canceled with Red in but in no case should be torn. The canceled DD should be kept with the relevant ticket.

6) The original entries are to be reversed giving proper narration. An IBDA for the canceled DD should be issued on the Drawee branch.

7) Cancellation of the DD should also recorded in the L.D Issue Register.

Payment of DD

  1. When a DD is presented for payment at the paying branch its details are to be carefully examined with references to the following points.

i) Whether the draft is drawn on their branch

ii) Whether the draft is crossed or not Amount of a crossed draft is not Paid in cash to the payee but to be paid to his account with a bank.

iii) Two authorized officials of the Issuing branch must have signed draft. Their signatures are to be verified from specimen signature book let to be sure that the draft is genuine. The verifier should out his initials in red ink against the authorized signature in the draft.

iv) Endorsement on the back of the draft must be regular in case the draft is presented through clearing.

v) The amount of the draft should not exceed the amount protect graphed written in red ink on the top of the draft.

vi) The payee is to be properly identified in case of case payment.

vii) The particulars of the draft i.e. the draft number date amount and the name of payee, should be verified from the DD payable Register.

  1. On payment the DD is affixed with the branches Paid stamps and signatures there on are canceled with red ink. The data of payment is recorded in the DD payable register necessary accounting entries are also passed and recoded in the books of Account.


Dr Remittance Awaiting Disposal L.D payable a/c

Cr. Client’s Account/Teller’s Cash


  1. After receiving without Advice a/c

Cr. Client’s a/c/Teller’s Cash

  1. After receiving the IBCA

i. Dr. PBL general A/c

Cr Remittances Awaiting Deposit DD payable a/c

ii. Dr Remittances Awaiting Disposal DD payable a/c

Cr DD Paid without Awaiting Disposal DD payable a/c.

As the draft is issued by the Issuing branch, the payee or purchase of the draft cannot give stop payment instructions to the Drawee branch. If a paying branch receives any request from the payee/endorsee or the purchase of a draft for stopping payment of the draft, it will ask them to approach the issuing branch for the purpose. The paying branch should however exercise necessary precaution in this regard. Only the Issuing branch can issue instructions for stop payment of draft under special circumstances. However, if a draft on which stop payment order is received from a court of law the same should be carried out. F a draft on which stop payment order has been issued buy account is presented for payment the same should be returned unpaid with he answer court prohibited payment quoting court order number and date.

Only the purchase can request the Issuing branch for cancellation of a L.D. The drawee branch can not cancel a L.D. The Drawee branch can accept cancellation instructions only from the issuing branch. When a draft is cancelled by the Issuing branch the relative entry is the PBL general a/c is reversed and IBDA from the Issuing branch, the Drawee branch should reverse the original liability entries the strength of the IBDA and record suitable remarks in the L.D payable Register Related IBCA of the draft.

Pay Order

  1. Pay order issue process

For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form (in triplicate) properly filled up and duly signed by application. The processing of the pay order Application form, despot of cash/cheque at the Teller’s country and finally issuing a order etc, are similar to those of processing of L.D Application.

As in case of L.D each branch should use a running control serial number of their own for issuance of a pay order. This control serial number should be introduced at the beginning of each year which will continue till the end of the year. A fresh number should be introduced at the beginning of the next calendar year and so on.

  1. Charges

For issuing each pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/c as usual.

  1. Entries

Dr. Teller’s Cash/client’s a/c

Cr pays Order a/c

Cr commission a/c

  1. P.O issue Register

The remittance Department will issue the pay Order’s duly crossed “A/c payee” and will enter the particulars of the P.O Issued in the prescribed P.O Register duly authenticated.

  1. Payment of pay orders

As the P. Os crossed A/c payee, the same are presented to the Issuing branch for payment either through clearing of for credit to the client’s A/c. Os when presented for payment are processed in the Remittance Department. On making payment, the relative entry in the P.O Register is marked of by entering the date of payment in the P.O Register duly authenticated. The paid instrument is treated as Debit Ticket.

  1. Refund of Pay Order

The following procedure should be followed for refund of pay order by cancellation

1. The purchase should submit a written request for refund of pay order by cancellation attaching therewith the original pay order

2. The signature of the purchaser will have to be verified from the original application form on record.

3. Manager/Sub-manager’s prior permission is to be obtained before refunding the amount of pay order cancellation.

4. Prescribed cancellation charge is to be recovered from the application and only the amount of the pay order less cancellation charge should be refunded.

5. The pay order should be affixed with a stamps “ cancelled” under should also be canceled with RED ink but in no case should be torn. The canceled pay order should be kept with the relevant Ticket.