Chapter-01

1.1 Prolegomenon

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A Bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example, most banks also rent safe deposit boxes in their branches. Currently in most jurisdictions commercial banks are regulated and require permission to operate. Operational authority is granted by bank regulatory authorities who provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. A commercial bank is usually defined as an institution that both accepts deposits and makes loans; there are also financial institutions that provide selected banking services without meeting the legal definition of a bank. Banks have influenced economies and politics for centuries. The primary purpose of a bank was to provide loans to trading companies. Banks provide funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Commercial lending today is a very intense activity, with banks carefully analyzing the financial condition of its business clients to determine the level of risk in each loan transaction. Banking services have expanded to include services directed at individuals and risks in these much smaller transactions are pooled.

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Chapter-01

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A bank generates a profit from the differential between what level of interest it pays for deposits and other sources of funds, and what level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclic and dependent on the needs and strengths of loan customers. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on array of deposit activities and ancillary services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). However, lending activities still provide the bulk of a commercial bank's income. Any institution offering deposit (a sum of money paid by a buyer as part of the sale price of something in order to reserve it) subject to withdrawal on demand and making portfolios (diversify the fund to reduce the risk) of loan is known as bank. The bank is the life blood of modern economy. Modern banks play an important part in promoting economic developing of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. A Commercial institution licensed as a taker of deposits. Banks are concerned mainly with making and receiving payments on behalf of their customers, accepting deposits, and making short-term loans to private individuals, companies, and other organizations. In the UK, the banking system comprises the Bank of England (the central bank), the commercial banks, merchant banks, branches of foreign and Commonwealth banks, the National Savings Banks, and the National Girobank. The first (1990) building society to become a bank in the UK was the Abbey National, after its public flotation; many other building societies have now followed this precedent. In other countries banks are also usually supervised by a governmentcontrolled central bank.

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Chapter-01
1.2 The Internship

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We the students of Bachelor of Business Administration (BBA) study the subjects related to business. The school of business at home and abroad to familiarize each student as they move comfortably in the business environment but only the theoretical study in the class room is not enough rather a practical experience and the only means of practical experience is internship program. In the business environment at home and abroad there is lots of financial institution. Business firms and industries that provide this facility towards us. If we could not get this facility of internship then a wide gaps will take place between our study and experience, I think this is a valuable for us. We the students of business do this usually for three months. In our country there are many banks particularly the esteemed private sector banks, and elite business firms provide this. In this respect I have done my internship at IFIC Bank Ltd. the one of the most renowned private bank in Bangladesh. I am thankful to for this.

1.3 Origin of the Report

The internship program is required for the student of BBA. It is a program with duration of three months. Students who have completed all the required courses are eligible for this program. In the internship program I was attached to the IFIC Bank Limited for three months. During this period I have learned how the organization works.

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Chapter-01
1.4 Objectives of the study

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The primary objective of this report is to use the theoretical concepts in analyzing real life of Practical Orientation in Banking activities, which is a partial requirement of the BBA program. But the objective behind this study is something broader. The broad objectives of this report are summarized in the following, manner: To meet the terms with the entire branch banking procedures To formulate a viaduct between the theories and practical procedures of banking day to day operations To be aware of the terms that has been taught in the NUB To scrutinize the performance of the branch as well as IFIC Bank Ltd. as a whole To gain practical experiences and view the application of theoretical knowledge in the real life

1.5 Scope of the Report

This report helps me to understand the clear real-time experience about the total management of IFIC Bank Ltd. It helps me to understand, how the bank manage its total process? It also helps me to understand how they deal with the customer.

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Chapter-01
1.6 Methodology
This report has been prepared on the basis of experience gathered during the period of internship from 3rd June to 3rd September. Within this period I visited two department namely General Banking and Loans & Advances departments. Firstly total duration were divided into total working days that came to a total working day of 90 days and were distributed in the following manner: Department General Banking Loans & Advances Duration From 3rd November to 22th December From 23th December to 3rd February In Days 40 Days 50 Days

1.7 Sources of Data

The nature of the report is analytical in nature. Collecting primary and secondary data regarding practical orientation in banking activities. I have found the strengths and weakness and based on those I have made some recommendations. I have collected primary and secondary data for my research paper. So this report is based on both primary and secondary data. Primary data is collected from:

Open ended and close ended questions Personal experience gained by visiting, different desks Personal investigation with bankers Face to face communication with employees of the IFIC Bank Ltd.

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Chapter-01
I have collected secondary data for my research paper from:

Annual reports of IFIC Data collected from internal report Previous performance matters booklet Bank records Journals of the Bank Different books, training papers, manuals etc. related to the topic Official Website of the Bank

1.8 Structure of This Report

In the very beginning of this report a brief description of IFIC Bank has been furnished. Then in the subsequent chapters, elaboration of the two departments of the branch, say general banking, and Loans & Advance has been presented. At last few pages of the main report, some problems in banking which are observed while doing work in the branch are detected along with some recommendations to overcome these problems. At the end of this report appendices and bibliography are added.

1.9 Limitations of the Study

I had to face some limitations at the time of preparing this report. The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh especially IFIC Bank. Some constraints are as follows:

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One of the major limitations is the shortage of internship period. Since three month is not enough to know everything of a Bank, so this report does not contain all the area of IFIC Bank Ltd.

Chapter-01 Because of the limitations of various sources of information the report doesnt
contain many important information and data. All scheduled commercial bank regulated by the instruction do central bank. Most of the instructions are confidential to the commercial bank. So, I was incapable to provide valuable information. The main constraints of the study are inadequate access to information, which has hampered the scope of analysis required for the study. Due to time limitation; many of the aspects could not be discussed in the present.

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Chapter-02
2.1 Preamble

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IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There are sixty-five branches of IFIC Bank all over the country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Banani Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Banani branch only. The format of the report is being followed as per the guideline given by the Northern University authority.

2.2 Banks Mission

Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for. We are committed to the welfare and economic prosperity of the people and the community, for we drive from them our inspiration and drive for onward progress to prosperity. We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.

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2.3 Composition of the Board

Chapter-02 combination of both private and Govt. sector experience. Currently it consists of
10 Directors. Of them five represent the sponsors and general public and four senior officials in the rank and status of joint Secretary/ Additional Secretary represent the Govt. Managing Director is the ex-officio Director of the Board.

Unlike other banks in the private sector, Board of Directors of the bank is a unique

2.4 Objectives of the Bank

The objectives of the bank are to promote joint participation of Government and private sponsors to establish joint venture banks, financial companies, branches and affiliates abroad to satisfy their customers. It conveys its objective via their motto: Your Satisfaction First.

To establish, maintain, carry on, transact, undertake and conduct all types of
banking, financial, investment and trust-business in Bangladesh and abroad.

To form, establish and organize any bank, company, institution or organization,

singly and/or in joint-collaboration for partnership with any individual, company, financial institution, bank, organization, or any Government and/or Government agency for- the purpose of carrying on banking, financial, investment and trust business and/or any other business as provided hereafter.

To carry on any business relating to Wage Earner's Scheme as may be allowed

by Bangladesh Bank from time to time including maintaining of Foreign Currency Accounts and any other matter related thereto.

To contract or negotiate all kinds of loan, and or assistance, private or public,

from any source, local or foreign, and to take all such steps as may be required to complete such deals.

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To form, promote, organize, assist, participate or aid in forming, promoting or

organizing any company, bank, syndicate, consortium, and institute or any holding or subsidiary company in Bangladesh or abroad for the purpose of undertaking any banking, financial, investment or trust business. Chapter-02

2.5 Strategies
IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the activities of its branches. In case of marketing strategy they basically depend on word of mouth as they are already well reputed for its long-term service in the banking industry.

2.6 Domestic Branches of the Bank

The branches of the Bank cover all tile important trading and commercial centers in Bangladesh. At present it has 65 branches within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower. Steps are underway to open new branches in important locations in the country during 2007.

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Chapter-02
2.7 Products & Service
Auto Loan Consumer Loan Easy Loan Porua Loan Flexi Loan Thikana Loan Possession Loan Pehajibi Loan Retail Loan

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Chapter-02
2.7.1 Pension Savings Scheme

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Empower yourself for a secure and prosperous future with IFIC PSS. Partnership for a prosperous and secure future. Features: Under this Scheme you can open a deposit scheme for Tk.500, Tk.1000, Tk.2000 and Tk.5000 per month for 3 or 5 years whichever suits you. You can make the deposit within 10th of each month (In case of holiday the next working day). You can get Loan up to 80% of the deposited amount You can receive the entire deposit amount with interest at one go or receive a pension on a monthly basis at a desirable amount of your monthly installments. For your clarity a Table of Deposit Scheme and after Maturity Payable Amount is given below: Monthly Installment Tk.500 Tk.1000 Tk.2000 Tk.5000 3 Years Scheme Tk.20322 Tk.40645 Tk.81290 Tk.203225 5 Years Scheme Tk.36266 Tk.72532 Tk.145064 Tk.362661

Extra Benefits: If you fail to deposit monthly installments continuously for 3 consecutive months your account will become automatically inoperative. But, it can be revalidated on the 4th month on receiving all outstanding installments along with a written application. You will be given two(2) opportunities during the 3 years scheme and three(3) opportunities during the 5 years scheme to avail this option. You can pay installments by transferring from your CD/SB account maintained with the concerned branch. Installments may also be paid in advance. You can close the account at any time by a written application*. Monthly installments to PSS will qualify as investments in yearly Income Tax return. Rules and Regulations: The applicant has to be +18 years of age. On failure of 4th consecutive monthly installment the account will be fully closed automatically. * If the applicant want to close the account before maturity the following rules will be followed:

a) have to pay Tk.200 as service charge

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b) If the account is closed within one year, only principal amount will be paid. c) If the account is closed after one year, only principal amount along with interest at saving rate/PSS rate (whichever is lower) prevailing on the date of closure of the account will be paid.

2.7.2 Rates of Interest On Deposits of IFIC Bank Limited. SI. No. 01 02 Types of Deposits Saving Bank Deposit Short Team Deposit (STD) Less than Tk. 1.00 Crore Tk. 1.00 Crore and above but less than tk 5.00 Crore 4.00% 4.50% Rate of Interest 6.00%

Tk. 5.00 Crore and above but less than tk 10.00 Crore 5.00% above Tk. 10.00 Crore 6.50% 03 04 FDR ( Tenure 1 month ) FDR ( Tenure 3 months): Less than Tk. 5.00 Crore Tk. 5.00 Crore and above 05 FDR (Tenure 6 months) Less than Tk. 5.00 Crore Tk. 5.00 Crore and above 06 FDR ( Tenure 1 Year) Less than Tk. 5.00 Crore Tk. 5.00 Crore and above 07 FDR (Tenure 2 Years) 12.50% 13.00% 12.25% 12.50% 13.00% 12.50% 13.00% 10.00%

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Chapter-02

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2.8 Banks Major Functional Departments & Others Activities:

1. General banking Division A wide range of products and services different type of deposits such as SB, CD, FDR etc are offered by this department. Local private banks is biggest threat a they offer higher interest rate and better services. 2. General Credit Division A wide range of products and services, such as different type of loans are offered by this department. It faces continuous challenge from the local private banks, which mainly specializes in the consumer banking. As a result, it has to develop new products and services to ease the competition on a continuous basis. The approval is mainly based on the risk analysis of the corporate clients done by the Corporate Banking division. 3. Finance and Accounts Division This department performs the following activities: Sources of finance Administration, audit and back office operation. Salary & Provident Fund Taking care of taxation and financial control of the Bank. Decision making related to administrative activities 4. Recovery Division Recovery of stuck-up loans is a major concern for the bank. This division helps general credit and project finance divisions to recover the loans and take legal action against those creditors. Some time there is some usual recovery. Recovery from written off loans goes to income account of the bank.

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Chapter-02
5. Project Finance Division

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IFIC Banks corporate clients mainly comprise the top local and multinational companies operating in Bangladesh. The main objective of this department is to build and maintain positive relationships with their clients. As a result, each and every company is assigned a Relationship Manager, who maintains regular contacts with clients. Moreover, this department offers the following facilities to its clients: Project Finance. Syndicated Loans. Bonds and Guarantees, etc. 6. Treasury Division The foreign exchange and money market operation of the IFIC Bank is broad. Exotic currencies happen to be one of its specials areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Bank's network of dealing centers placed in the principal of the world. The Bank's treasury specializes in offering solutions to who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region. 7. Internal Control & Compliance Banking involves high risk, the presence of effective internal control system, corporate governance, transparency and accountability is vital to ensure smooth operation of the bank. The internal control is the process affected to provide reasonable assurance for the achievement of the objectives of the bank, the reliability of financial reporting and compliance with applicable laws, regulation and internal policies.

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Chapter-02
8. Audit & Inspection Division

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This division helps the bank accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. It also assists development of the process for smooth operation of various department and branches, detect major deficiencies in the branches, review the activities and organizational structure of the internal audit function. 9. Foreign Trade Division All the overseas branches are under the control of this division, the regularly communicate with those branches and solve problem of those branches. 10. Marketing Division It basically handles all promotional campaign, branding both consumer and corporate products and services for IFIC bank. 11. Law Division In Bangladesh local banking laws regulate and rules set by the Ministry of Finance and Bangladesh Bank is handling by this division. Law division has to take care of are: Any kind of legal issues Compliance advisory service 12. Personal Division It works with the administrative issues and supervise internal work environment. It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country.

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Chapter-02
13. Human Resource Development Division

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Human Resource Development is focused on recruitment and in house training for both on the job and off the job bank staff members through the Banks Academy. IFIC Bank Academy- the oldest institution in the private sector was conceived of as an in house training center to take care of the training needs of the Bank internally. One of our four major missions is to: "Provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for." 14. Panning, Research & Statistics Division They study the market through which they find out which product has demand in current market, plan for new product features and they collect statistical data for future use.

15. Computer & IT Division Now all the branches were under similar automated platforms with upgraded software applications to offer all the critical banking features. IFIC Wed site has been launched for the convenience of the customers, where all the activities and information are constantly being posted and undated. This gives all technical support to all branches and Head Office.

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Chapter-02
Branch Network

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There are 74 branches of IFIC Bank limited all over the country. All the branches are involved in providing service to its clients in various ways.

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Chapter-02
2.9 Major Functions of the Bank
Major functions of IFIC Bank limited include general banking, loan and advance and clearing and remittance and foreign exchange. The major functions are given in the workflow below:

2.9.1 Financial Performance of IFIC Bank

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Chapter-03
3.1 Introduction

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Banking is nothing but collecting money from the surplus units and deploying it to the deficit units. In this regard Banani Branch plays an incredibly crucial role, because we know that in this area most of the dwellers came from elite class and countrys major portion of the money is owned by them. In my orientation period, I have observed that IFIC Banks major portion of the deposits comes from Banani Branch.

3.2 History of Banani Branch

IFIC Bank limited, Banani Branch was opened on March 07, 2008 with an initial deposit of TK 211.08 Lac. 25 officials including 5 authorized officers are posted in the II grade branch. Staff strength of the branch is adequate as to the volume of their present business. In comparison with other banks branches in this area at Road No.11, Banani, mobilization of deposit, procurement of business, assets management of our Banani branch are increasing gradually. In the year 2008, all targets were achieved by the branch except its Advance target. However, all targets as on 30th December, 2008 were achieved by the branch. Total loan & advances of the branch is TK 543.33 Lac as on January 01, 2008 which is 8.60% of its total deposit indicating very poor credit portfolio. The branch earns profit from loan & advances, interest on general account other commission business like commission on L/C, LG, TT, DD, PO etc. Most positive side of this branch is the work environment is very friendly and customers find a comfortable place for their transactions.

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Chapter-03

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Chapter-03

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3.3 Functions of various departments in IFIC Bank, Banani Branch

As given in the organ gram, Banani Branch consists of 17 employees who directly or indirectly serve their customers in various ways. The major functions of the bank have been given before. Now they will be discussed thoroughly by highlighting all the functions of IFIC Bank, Banani branch.

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Chapter-04
4.1 Introduction
General banking is the heart of banking activities. Total banking procedure start with this department. General banking department perform the core function of bank operation and it is known as Retail Banking. They take the deposits from the customer and meet their demand for cash honoring their checks. It opens new accounts, remit funds, issues bank draft and pay order. Account opening section, Remittance, Checks clearing, Cash, FDR, Accounts section are part of general banking.

4.2 Account Opening Section

This section opens Current Deposit (CD), Savings account (SB), STD, FDR. Most vital work starts from here as selection of customer is very important for the bank success and failure. If the account holder do money laundering through this account than the bank will be legally responsible for that and bank has to answer to Bangladesh bank or customer may occur fraud and forgery by this account and thus destroy goodwill of banks. In branch account opening officer follow some rules which are guided by IFIC Bank manual and senior opening form signature is must in this case. Managers signature is must on every account opening form as permission for opening the account. All these help to stop adverse situation. (See Appendix: B)

Target Customer of IFIC Bank Banani Branch:

Individual person Sole proprietorship firm Partnership firm Private limited company Public limited company Government Organization Semi Government Organization Bank employee

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Chapter-04
4.3 Types of Accounts

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Deposit is life-blood of a commercial bank. Since commercial bank deals with other peoples money, without deposit there is no business for the commercial bank. Accepting deposit is one of the main functions of commercial bank. IFIC banks deposits can be broadly classified as follows:

4.3.1 Current Account

Current Account is most suitable for private, individuals, traders, merchants, importers and exporters, mill and factory owner etc. For opening of a current minimum deposit of TK. 2000.00 is required along with introductory reference. No interest is given the current account deposited money. One can enjoy maximum flexibility and convenience when s/he opens a current account with IFIC bank limited. This account offers:

Any number of transactions a day Free check book Statement of account at any desired frequency Statement by fax on demand 4.3.2 Savings Account
The saving account is primarily for small-scale savers. The main objective of this account promotion is thrift. Hence, there is restriction on withdrawals are permitted only against prior,

Minimum amount of TK. 1000.00 is required as initial deposit. Frequent withdrawal is not encouraged. 7 days is required for withdrawal of large amount The rate of interest is 6.00 % against SB account.

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Chapter-04
4.3.3 Short-Term Deposit (STD) Account

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In short term deposit account, the deposit should be kept for at least six month to get the interest. The STD account is a very important class of account in this bank. The minimum amount of balance has to be maintained with STD account is TK. 25000 Interest is given at a rate of 4.5 percent which is less than savings account. Normally various big companies, organizations, government departments keep money in STD account. For this type of account, frequent withdrawal is discouraged. Deposit should be kept for at least seven days to get interest. Prior notice is required for the withdrawal of money from STD account. The account holder must give seven days before the withdrawal that is why STD is also called Seven days notice current account.

4.3.4 Fixed Deposit Receipt (FDR)

Fixed period specified in advance. These deposits are time deposit. Normally the money on a fixed deposit is not repayable before the maturity date of a fixed period. At the time of opening the deposit account, the banker issued a receipt acknowledging the receipt of money on deposit account. It is popularly known as FDR. An interest rate ranging from 10.50 percent to 11.50 percent is offered depending on different amount and tenure of deposit. Fixed deposits are the deposits in which an amount of cash is deposited in bank for a

4.3.5 Transfer of an account to another Branch

Sometimes the customer wants to transfer his account to another branch due to various reasons. IFIC Bank, Banani Branch, also gives this kind of facility to the customer. In this case, they will have to submit an application to the branch manager stating the reasons. The officer verifies the signature and finds out the balance of the account holder. The holder also submits the rest check leaves along with the application.

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Chapter-04
Then the officer issues an Inter Branch Credit Advice (IBCA) to that branch and a debit voucher with the balance of deposit in that account. He also sends the account opening form and specimen signature card to that new branch. The new branch officer verifies the customer signature with account opening form supplied to him. The amount mentioned in the (IBCA) considered as the initial deposit of the new branch.

4.3.6 Closing Procedure of an account

For two reasons account can be closed By Banker: banker has the right to close the account if the customer does not maintain any transaction six years and the balance is become lower than the minimum balance. By Customer: if the customer wants to close his account he will write an application to the manager and the manager then close the account. Firstly, the concerned customer has to apply for closing his/her account. Then to close the account the cheque book is to be returned to the bank. After charging the account closing charge the Manager will close the account. Closing charges are as follows:

For below 6 months 100 tk. For over 6 months 200 tk.
The rest amount of money laid in the respective account is paid to the customer by a payment order. In case of payment order certain commissions and vat are cut off from the account.

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Chapter-04
4.4 Cash Section

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Cash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash balance are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance. This closing balance is then added to the vault. And this is the final cash balance figure for the bank at the end of any particular day.

4.4.1 Functions of Cash Department

Cash Payment 1. Cash payment is made only against check 2. This is the unique function of the banking system which is known as payment on demand Cash receipt 3. It makes payment only against its printed valid check 1. It receives deposits from the depositors in form of cash 2. So it is the mobilization unit of the banking system 3. It collects money only its receipts forms

4.4.2 Cash payment or check cancellation process

Step 1 Step 2 Receiving Check by the employee in the cash counter Verification of the followings by the cash Officer in the computer section 1. Date of the check (it is presented within 6 month from issue date) 2. Issued from this branch 3. Amounts in figure and sentence written does not differ 4. Signature of the drawer does not differ 5. Check is not torn or mutilated Step 3 Step 4 Gives pay cash seal and sends to the payment counter Payment officer makes payment

Chapter-04

4.4.3 Books Maintained by this Section

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Vault Register Cash Receipt Register Cash Payment Register Rough Vault Register

Cash balance at the end of a day is recorded in this book which is kept in the vault. Cash receipt in whole of the day is recorded here Cash payments are made in a day are entered here Cash calculation for final entry in vault register is done here, as error and correction here is not acceptable in vault book or balance book. Balance here is compared with vault register. If no difference is found, indicates no error.

Cash Balance Book

4.5 Cheque Clearing and Remittance Department

This department receives cheque from its depositors for the purpose of collection by a deposit slip over the counter crediting their account. Clearing of cheque is done through the clearinghouse in Bangladesh bank. Everyday the first house starts at 9 a.m. and returns house at 5 p.m. The main objective of clearing and remittance department is to provide an extra facility to the customer other than cash receipt and payment. We can divide this department into two parts. One is Clearing & Transfer Delivery section, and the other one is Local Remittance section. In IFIC Bank, Banani Branch, there are three employees, working in this department. I am trying to present my findings in the following parts regarding these two sections.

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Chapter-04
1. Inward Transfer Delivery

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For payment of Bills presented to a particular branch of the Bank through another branch of the Bank, the procedures are the same as those applicable to Inward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing. 2. Outward Transfer Delivery For collecting of Bills by a particular branch of the Bank, drawn on another branch of the Bank the procedures are the same as those applicable to Outward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing.

4.5.1 General Instruction on Clearing

Step 1

The returns of the outward clearing/ transfer delivery are received by the branch in the same manner as the inward clearing/ transfer delivery (Return of Instruments).

Step 2 Step 3

Depositor's account is debited with the amount of the instrument. The instrument together with the Check Returning Memo in Bank's form is sent to the depositor with covering memo immediately.

Step 4

The instrument together with the Check Returning Memo is sent to the department concerned if lodged by them.

Step 5

It the instrument is to be re-lodged, a credit voucher is prepared and attached with it and the instrument is presented again.

Step 6

The instruments returned unpaid by the various departments are received in the Register (Inward Clearing Transfer Delivery).

Chapter-04 the Clearing Department attached with Memo in standard form and entered in
Step 7

The returns of inward clearing/ transfer delivery are sent by the branch in the same manner as the outward clearing/ transfer delivery.

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Step 8

The credit voucher is not posted unless the relative instrument is paid (Internal Transfer).

Step 9

If the instrument is returned, the entry is cancelled and initialed in the Transfer Book.

Step 10

The instrument together with the Check Returned Memo is sent to the depositor covering memo through Dispatch Department.

Step 11

If the amount of the advice received is less than the amount of the instrument received or the amount of the advice sent is more than the amount of the instrument delivered, the excess amount is sent to the Bank concerned by a Pay Order and the following entries are passed (Difference in Clearing): Debit: Sundry Deposit A/C- Difference in clearing Credit: Bills Payable A/CPay Order issued

Step 12

If the amount of the advice received is more than the amount of the instruments received or the amount of the advice sent is less than the amount of the instruments delivered, the following entry is passed and the entry is reversed when the Pay Order is received. Debit: Sundry Asset A/C- Clearing Adjustment

Step 13

When an instrument is presented in special clearing on request of the customer, the instrument is stamped and suitably endorsed (Special Clearing).

Chapter-04 branch maintains account (Bangladesh Bank & Sonali Bank).

Step15

Step 14

Such instruments should invariably be drawn on Bank with whom the main

Branch sends the instrument duly entered in Outward Clearing Register and Sub-main Schedule to the branch representing the Clearing 1 louse (When representing branch maintains A/C).

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Step 16

Branch representing the Clearing Mouse sends the instruments to the drawee Bank duly entered in Pay-in-Slip of the Bank for credit of the proceeds in the account maintained with them.

Step 17

On receipt of the information of credit of the proceeds from the drawee Bank, the branch representing Clearing House then sends an Inter Branch Credit Advice (IBCA) to the branch concerned.

Step 18

Where instruments drawn on Banks other than those, with whom the branch, representing Clearing House does not maintain account, Pay Order/ Bangladesh Bank Check issued by the drawee Bank in payment of the instrument are lodged in clearing. Bank's Locker service is also delivered from this department. In IFIC Bank, Banani Branch, this department is maintained by two officers.

4.5.2 Local Remittance

Sending money from one place to another place for the customer is another important service of banks. And this service is an important part of country's payment system. For this service, people, especially businessmen can transfer funds from one place to another place very quickly. There are five kinds of techniques for remitting money from one place to another place. IFIC Bank Ltd. earns a huge amount of money by selling several customer services. The IFIC Bank Ltd. offers the following services to its customer. These are:

Chapter-04

1) 2) 3)

Demand Draft Pay Order Telegraphic Transfer

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4) 5)

Telephone Transfer Mail Transfer - Time consuming and not frequently used

1. Demand Draft (DD)

DD is the most popular instrument of remitting fund. It is an order to pay money drawn by one branch of a bank upon another branch of the same bank for a particular sum of money which is payable to order and demand.

Commission of DD as under:
Postal charge 10/=

Amount of DD
Minimum charge

Commossion (TK)
25

2. Payment Order (PO)

A payment order is an instrument from one branch to another of the same bank to pay specified sum of money to the person named therein of his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing bank takes our money of the pay order in advance. Amount of DD
TK 0 to TK. 1000 TK. 1000 to TK. 100000 TK 100000 to TK 500000

Commission (TK)
10 25 50 100

Chapter-04

Above TK. 500000

3. Telegraphic Transfer (TT)

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TT is the fastest means of money transfer between two branches of the same bank. The formalities of TT is as same as MT, there are taken some extra charge for telephone. Telegraphic and Telephone transfer are almost the same, both are them are known as TT in short. IFIC bank helps people transfer their money from one district to another in the quickest possible time at the lowest service charge.

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Chapter-05
5.1 Introduction

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Banking is essentially a business dealing with money and credit. Like over other business activity, Banks are profit oriented. It depends mainly on how much profit they can make. Profit is the yardstick for the bank to move on. They work as reserves of savings of the community and also as lenders or investors for trade business and industry. A bank invests its funds in many ways to earn income. The bulk of its income is derived from loans and advances. Banks give loans and advances to traders, businesspersons and Industrialists against the security of some assets or on the basis of the personal security of the borrower. This is the survival unit of the bank because until and unless the success of this section the survival is a question to every bank. If this section is not properly working the bank may become bankrupt. This is important because this is the earning unit of the bank. Banks are accepting deposits from the depositors in condition of providing interest to them as well as safe keeping their interest. Now the question may gradually arise how the bank will provide interest to the clients and the simple answer is advance. Why the bank provides advances to the borrowers

To earn interest from the borrowers and give the depositors interest back To accelerate economic development by providing different industrial as well
as agricultural advances

To create employment by providing industrial loans To pay the employees as well as meeting the interest groups
Credit is continuous process. Recovery of one credit gives rise to another credit. In this process of revolving of funds, bank earns income in the form of interest. A bank can invest its fund in many ways. Bank makes loans and advances to traders, businessmen, and industrialists. Moreover nature of credit may differ in terms of security requirement, disbursement provision, terms and conditions etc.

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Bank often uses loans and advances as an alternative to one another. But academically this concept is incorrect. Academically Advances is the combination such items where loans is a part only. For this credit section of the banks is known as advance section. It is the main profit source of the Bank. Banking business is like all other profit-oriented business. It depends mainly on how much profit they can make. Profit is the yardstick for the bank to move on. Banking is a business that deals only with money and credit. Banks are profit oriented. They invest their fund in many to earn income. Huge amount of income derives from loans and advances. Banks makes loans and advances to traders, businessman and industrialists against the security.

5.2 Target Customers of the IFIC Bank

The customers for loan and advances are categorized as follows: 1. Individual person 2. Sole proprietorship firm 3. Partnership firm 4. Private Limited Company 5. Public Limited Company 6. Government and semi Government Organization 7. Bank employee

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5.3 Processing of loan and advances

Applicant applies for the loan in the prescribed form of bank. Getting Credit Information: 1. Personal investigation 2. Confidential report from other bank head office/ Branch/ Chamber of the Commerce. 3. CIB report from Central Bank

5.4 Analyzing the Information

Banks then starts examination that whether the loan applied for is complying with its lending policy. If comply, then it examines the documents submitted and the credit worthiness. Credit worthiness analyses, i.e. analysis financial conditions of the loan applicant are very important. If loan amount is more than 50 lakh then bank goes for Lending Risk Analysis (LRA) and Spreadsheet Analysis (SA) which are recently introduced by Bangladesh Bank According to Bank rule. LRA and SA are must for the loan exceed one crore. If these two analyses reflect favorable condition and documents submitted for the loan appear to be satisfactory, then bank goes for further action.

5.5 Information Collection

The loans and advance department gets a form filled by the party seeking a lot of information. The information is listed below: 1. Name and address (present and permanent) 2. Constitution or status of the business 3. Particulars of properties, partners and directors 4. Background and business experience

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5. Particulars of personal assets, names of subsidiaries, percentage of share holding and nature of business 6. Details of liabilities in name of borrowers, in names of any directors 7. Financial statement for the last three years 8. Nature and details of business/ products 9. Details of requested credit facilities 10. Details of securities offered 11. Other relevant information 12. Proposed debt equity ratio.

5.6 Relevant matter of Document checked before sanctioning any Loan

There must be an account of the person want to take loan. The account must transact for not less than 3 months to 6 months. Otherwise the loan will not be sanctioned. After checking the duration of account than the transaction made by the account holder must be checked. The debit credit position must be also checked, because it is related with future dealings of the borrower. The purpose for what the loan is taken by the borrower is another important matter to see and check. Whether the purpose is business or else must be checked with its marketability. Because there is risk of fraud and forgery by the borrower by seeing one purpose in cash of ding any illegal business. The banker should check through security whether it is enough or not.

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Chapter-05
5.7 Proper Supervision of the Project
If such provision is kept in the sanction contracts the bank officials go the project area and observe how loan is utilized. Of no such close to supervise the loan is added, even the bank can see the performance of the project.

5.8 Loan Recovery

In general the loans are repaid in installment. Some loans are repaid all at a time. If any loan is not repaid in usual cause to action legal procedure is followed to recover the money.

5.9 Documentation of the loan

These are the most common documents for creation of above mentioned charges and for other formalities of sanctioning loan. 1. Demand promissory note: Here, the borrower promises to pay the loan as and when demand by bank to repay the loan. 2. Letter of arrangement. 3. Letter of continuity. 4. Letter of hypothecation of goods and capital machinery. 5. Stock Report: This report is used for CD and CC. In this report, information about the quality and quantity of goods hypothecated furnished. 6. Memorandum of deposit to title of property duly signed by the owners of the property with resolution of Board of Directors of the company owning the landed property. 7. Personal guarantee of the owners of the property. 8. Guarantee of the all directors of the company.

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9. Resolution of the board of director to borrow fund to execute documents and completes other formalities. 10. Letter of Disclaimer: By this letter, the borrower withdraws his all claim on the claim of the property/ goods lined/ mortgaged. 11. Form no. 18/19 for filling charges with the register of joint stock companies under relevant section. 12. Tax paying certificate. 13. Letter of installment.

5.10 Advances
The total advances amounted to TK. million, including bills discounted and purchased as on 31.10.99. Continued emphasis on quality assets resulted in more than hundred percent increases in assets base for the bank, trade-related and working capital financing were the principal areas where lending activities were concentrated.

5.10.1 Forms of Advance

Bank generally offers different kinds of credit facilities to their customer. They are in different forms with different categories. The credit facilities may be broadly classified into four categories. They are as follows: 1. Loans 2. Cash credit 3. Overdraft 4. Bills purchased and discount

1. Loans
In case of loan, the banker advances a lump sum for a certain period at an agreed rate of interest. The entire amount is paid an occasion either in cash or by credit in this current account, which he can draw at any time. The interest is charged for the full

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amount sanctioned whether he withdraws the money from his account of not. The loan may be repaid in installments or at expire of a certain period. Loan may be demand loan or a term loan. Advance made in a lump sum repayment either on fixed installment basis or in lump sum on subsequent debit except by way of interest, incidental charge, etc. is called a loan. After creation of loan there will be only repayment by borrower. The loan may be repaid in installment or at expire of a certain period. Loans are normally allowed to those parties who have either fixed source of income who desire to pay it in lump sum. Banks gives different types of loan to his party.

Types of loans
The different types of loan that banks give to his party are as following: Term loan: Industrial Transport loan House building loan Others Staff house building loan Loan against trust receipt Staff loan against PF (Provident Fund) Consumer credit LIM (Loan against Imported Merchandise) Loan general/Demand loan Before give loan credit department has to do certain functions. First they have to send CIB to Bangladesh Bank, Lending Risk Analysis, and Issuance of Bank Guarantee after completion of these jobs if the result is positive than officer can sanction loan.

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Every Bank has to send a quarterly CIB Report to the Bangladesh Bank for amounts due up to TK.50,000/- mentioning the name of the borrower and the purpose for which loan has been sanctioned and a monthly statement for the amount due more 1 core Taka. Bangladesh Bank provides CL (Classification Form) to every bank for preparing this report. The procedure for loan classification is given by Bangladesh Bank under BRPD circular no 16, dated 06/12/1998.

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Chapter-05
2. Cash Credit

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Cash credit is given through cash credit amount. Cash credit amount is basically a current account, however a little different exist between them. The distinction between a current account and cash credit account is that the former is intended to be an account with credit balance and the letter and account for drawing of advances. Operation of cash credit is same as that of overdraft. The purpose of cash credit is to meet working capital need of traders, farmers and industrialists.

3. Overdraft
Overdraft is that advance which is allowed on current account operated upon by check. The customer may be sanctioned a certain limit within which he can overdraw his current A/C within a certain period The customer can withdrawals or deposits any numbers of within his limit. Interest is calculated and charged only on the actual debit balances on daily product basis. Overdraft facility is generally given to businessman for expansion of their business. Bank gives overdraft in following two ways:

SOD (secured overdraft) Cash credit

Secured Overdraft (SOD) Secured overdraft is a continuous credit facility to the customer of the bank. This kind of credit facility is given on following security:

Government security FDR (fixed deposit receipts) Shares ICB unit certificate Work order

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If any customer wants to get SOD facility from the Bank, he has to submit an application to the Bank manager It must be done in prescribed form of the bank. In this has to submit details about his business. After getting application form bank made an office note. In this note bank officer write down the following things:

Nature of limit Extent of limit Security Margin Rate of interest rate Validity
Then the Bank Authority mark the security as a lien in their register. For getting any credit facility from the Bank the customer must have a current account in that bank branch. Bank can give up to 80% credit facility of the security like FDR, BSB, PSP, ICB unit certificate. SOD limit for FDR, BSB, PSP, ICB unit certificate:

Two care from branch level Above from head office

SOD limit for different kinds share:

20 lac from branch label If it is more then 2.0 lac, the branch has to take approved from head office
For share bank can sanction 70% credit facility for "A" grade share and 60% for "B" grade share. In case of SOD on share the last six months average value or present value, which one is higher, is considered.

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Chapter-05
SOD on Work Order If any party wants to get SOD facility from the bank after getting work order, he has to submit an application with reliable security mention there In past time bank give SOD facility without any collateral security. But now bank do not give any SOD facility against work order if bank see that all of his papers are eligible for getting SOD facility, bank asks him to give a power of attorney to the bank for receiving all kinds of payment for the work. He can get up to 50%of the amount of the work that he has to done. But he has to submit his collateral security for that. He gets 50% SOD facility against his collateral security. After getting power of attorney bank sends a request letter to the authority by which the work has been issued. Then that authority sends a letter to the bank that they will make all of the payment of the party through the bank. After getting the letter the bank credits the SOD amount to the customers current account. When bank gets payment from the authority, they make a ratio and cut off their amount from that payment. The following charge documents arc taken from the customer:

D.P (promissory note) note: Three types

1) Single DP note 2) Joint DP note 3) Joint and several DP note

Letter of arrangement Letter of continuity Letter of lien for advances against share, stocks and security.

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Chapter-05
Cash Credit (CC) Cash credit is the favorite mode of borrowing by traders, industrialist etc. for meeting their working capital. Cash credit is a kind of continuous overdraft. For cash credit facilities Banks allow a limit for his customer. Cash credit facility is given for one year. In banking system cash credit is given for two purposes. The purposes are as following:

Working capital Trading purpose

It is a favorite mode of advance for the customer. For cash credit facility bank allow a limit for his customer. The customer can make continuous transaction with in that limit. CC is given for one year. After one year the customer can renew his CC facility.

Interest
For CC facility interest is counted daily basis. That means customer has to only that amount of interest which is outstanding in his CC account. Interest is cut off from customer current in tram wise. Mode of security For CC banks take two type of security. These are as following:

Pledge Hypothecation

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In branch level bank cannot give more then 30 lac taka to his customer. But if bank want give more then 30 lacs. The branch has to get approval from head office of the bank.

Chapter-05
For giving CC bank takes following charge document: 1. DP note 2. Letter of arrangement 3. Letter of continuity 4. Letter of hypothecation of goods 5. Stock of goods report 6. Personal guarantee of all the director of the company 7. Deed on additional charge on the fixed assets of the company 8. Form for filling charge with register of joint stock companies 9. Resolution of board of directors 10. Insurance policy for stock In CC facility bank only allow 50% credit facility of the stock that the customer has been pledge or -hypothecation. Bank gives CC only for one year. After one year customer has to renewal it.

4. Bills purchases and discounted

Banks grant advances to their customers by discounting bill of exchange or pro-note.

Security against Advances

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The different types of securities that offered to a banker are as follows: A. Immovable Property B. Movable Property. Sanchay Patra, Bangladesh Sanchay Patra, ICB unit certificates, wage earner development bond. 2. Fixed deposit receipt. 3. Shares quoted in the Dhaka Stock Exchange and Chittagong Stock Exchange. 4. Pledge of Goods, produce. 5. Hypothecation of goods, produce and machinery. 6. Fixed assets of manufacturing unit. 7. Shipping documents.

Chapter-05 1. Pratirakshay

5.10.2 Modes of Charging Security

1. Lien

A lien is right of banker to hold the debtors property until the debt is discharged, bank generally retain the assets in his own custody but sometimes this goods is in the hand of third party with lien marked. When it is in the hand of third party, the third party cannot discharge it without the permission of bank. Lien gives banker the right to retain the property not the right to sell. For sell, permission from the appropriate court is necessary. Lien can be made on movable goods only such as raw materials finished goods, shares, debentures etc.

2. Pledge
Pledge is also like lien but here bank enjoys more right. Bank can sell the property without the intervention of any court, in case of default on loan, but for such

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selling proper notice must be given to the debtor. To create pledge, physical of goods to the bank is must.

3. Hypothecation

Chapter-05 In this charge creation

method, physically the goods remained in the hand of

debtor. But the documents of title of goods are handed over to the banker. The method is also called equitable charge. Since the goods are in the hand of borrower, bank inspects the goods regularly to judge its quality and quantity for the maximum safety of loan.

4. Mortgage
Mortgage is transfer of an interest in specific immovable property. Mortgage is created on the immovable property like land, building, plant etc. most common type of mortgage is legal mortgage in which ownership is transferred to the bank by registration of the mortgage deed. Another method called equitable mortgage is also used in bank for creation of charge. Here mere deposit of title to goods is sufficient for creation of charge. Registration is not required. In both the case, the mortgaged property is retained in the bank of borrower.

5.10.3 Advanced Against Fixed Deposit Receipts

1. Fixed Deposit Receipt Advance against Fixed Deposit Receipt will be subject to credit restrictions imposed from time to time by Head Office/ Bangladesh Bank. Scrutinize the Fixed Deposit Receipts with regard to the following points: i. The fixed Deposit Receipt is not in the name of a minor.

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ii. The depositor on revenue stamp of adequate value discharges in hand his signature is verified. iii. Creation of liability on Fixed Deposit issued in joint names by any one of the depositors is irregular.

Chapter-05 iv. It the deposit receipt is offered as a security for allowing advances, a letter of
line shall be obtained from the depositors, on the appropriate form. v. If the deposit receipt has been issued by the branch-allowing advance, line against that specific deposit receipt to be marked in the fixed deposit register of the branch. vi. The discharged receipt, the letter of lien duly verified by the issuing branch and the letter confirming registration of the lien on the deposit receipts shall be kept along with other documents under safe custody of the bank. vii. Lien on the partial amount of deposit shall not be accepted.

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Chapter-06
6.1 Introduction

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SWOT analysis is the detailed study of an organizations exposure and potential in perspective of its strength, weakness, opportunity and threat. This method uses the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. By SOWT analysis, an organization can also study their current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

6.2 SWOT Analysis of the IFIC Bank

Strengths:

IFIC bank has already established a favorable reputation in the banking

industry of the country. It is one of the leading private sector commercial bank in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector.

IFIC Bank Ltd. has a long-term reputation in the banking industry as it is one
of the oldest players here. So, their enduring good will in the field works as a vital strength.

IFIC bank has an interactive corporate culture. The working environment is

very friendly, interactive and communicate provides as a great motivation factor among the potential customer.

It has excellent Management. It has high commitment of customer, qualified and experienced Human
Resource.

It has sophisticated automated banking system in most of its branches which

foster the overall banking activity.

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Chapter-06
Weakness:

Lack of motivation among the workers. Heavy dependency on Head Office in decision making sometimes slower the
work process.

Lack of extrinsic and intrinsic reward & incentives for the employees from
management sometimes result to job burn out.

High dependency on word of mouth strategy instead of obtaining any

marketing strategy.

Absence of teamwork between branches.

Opportunity

Other unexplored district where branches can be set up. High awareness among all level of people to deposit money in the banks. Increasing the demand of customer finance. Investment potential of Bangladesh. Relationship Management.

Threats:

Some commercial/ Foreign Bank as well as private bank are increasing Similar type of retail banking products, such as insurance company, stock
exchange, financial institution etc.

Frequent changes in rules and regulations from Bangladesh Bank.

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Chapter-06
6.3 Findings

Customer awareness of pricing and service.

Only the cash section of the branch is computerized. Hopefully the management
decided to provide computer for departments, which will bolster services of the bank.

When a joint stock company comes to open an account if the company happens to be
an existing one, the banker should demand copies of the balance sheet and profit and loss account, which will reflect the financial growth of the company and its soundness. But in practice companies and the bankers as well dont even brother.

Encoding and decoding process of test number eat up the lion share of the time of the
officer who works in that desk. But a simple computer program could do the same if the desk were computerized.

Officers of the bank are competent. Even though many of them simply know the
working procedure of what they are doing but dont know the philosophy behind doing those.

Project loan requires testing of feasibility of project and judging the marketability of
the product. It requires infusion of knowledge of both the fields-marketing and Banking. But the bank has hardly any person with this kind of ability.

Like most of the private bank, IFIC Bank Ltd. also imposes a target deposit for
collection upon its employees. Every employee has to go out for the purpose of deposit collection, which they call development purpose. It is an effective method no question about it, since many banks of our country relies on this method. But sometime affect negatively and cause job dissatisfaction. Officers of the desk, where workload is very high, hardly get the chance to go out for development purpose and always feel that their duties for the organization would not be evaluated unless they can show a good amount of deposit collection against their name.

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7.1 Recommendation

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In order to get competitive advantage and to deliver quality service, top management should to modify the services.

Rectify the Existing Problems As there is no classified loan, branch should monitor the loans & advances closely to avoid classification in future. Banani Branch should extend with their all out effort to increase the credit portfolio and to procure more low cash deposit, increase non funded business so as to minimize dependency on interest earning from IFIC Bank general account and to improve overall business performance of the branch to maintain earning. Banani Branch should set up more CC camera in the branch to hold more control of manager in the branch. It can install CC camera in accounts department and clearing department as it is an important past of the branch and it is not always possible for the manager to visit all departments which has become important. Banani Branch can contact with the existing customers to make the dormant accounts operative. When a joint stock company comes to open an account if its an existing one, the account opening officer should ask the copies of the Balance Sheet and Income Statement. These will reflect the financial growth of the company and its soundness but in practice bank do not do this. If they have all these that will help them to examine money laundering risk. There are numbers of new private banks and some have already activated with their extended customer service pattern in a completely competitive market. Where as IFIC Banani branch is far behind. They are not competitive in customer service because the officers do not behave in professional manner in

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fort of customer. Some time they are late in there service, which ultimately disturbs the respective customer. Banani branch personnel should train up about all sort of information regarding SWIFT and its service. Due to lack of proper knowledge about the operation procedures and services provided to the customers by SWIFT, certain customers are facing problem, as they have to wait for certain time to get service as there was one officer know about the procedure of SWIFT. He is not fully independent of handling SWIFT. Official training is the solution to this problem. For customers convenience in Foreign Exchange Department of IFIC Bank Ltd. should provide more personnel to deliver faster services to their honorable customer. Now a day conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, online services and many others. IFIC Bank Ltd. should differentiate its services through adopting the modern facilities and implementing in the branch level. To deliver quality service top management of this breach should try to mitigate the gap between customers expectation and employees perception and customers convenience should give priority. Administrative cost of this branch is on the high side, which has a major impact on profitability. Te manager should bring down the administrative cost and take all effective steps, strategy and action plan to reduce the cost at the desired level. IFIC Bank should always monitor the performance of its competitors in the field of Foreign Trade. Without proper knowledge in different laws, rules which set by Bangladesh Bank efficiency of employees cannot be optimize. Bank can arrange training program on these subjects and can test its employees which will improve their qualities.

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IFIC Bank Ltd. should focus on their promotional activities. They should also focus on the marketing aspects to let customers know about their products and offerings and more promotion is should be given to attract new customer. IFIC Bank Ltd. must develop electronic banking system to moderate the service. Technological advantage of a bank ensuring its competitive edge in the market place which can only be achieved by improved technology, efficient manpower and better services. If bank get more market share through all these than it will reduce operating cost and generate new revenue. The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN). Without using modern technology no bank can even think of remaining in the business in near future. So the bank must decide right now how it can equip its branches with modern technology. Use of modern technology in one sense can increase cost but another sense it increase higher productivity and it attract big clients. It can introduce ATM service again in all branches which will bring speed in banking services. Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that officials can implicate this in their job. People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously as well. Side by side it will give customers better felling about the bank.

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Chapter-07
7.2 Implementation
Some other important factors that should be focused on the development process:

Time consumed at service level should be minimized at optimum level. Evaluate customers needs from their perspective and explain logically the
shortcomings.

Customers convenience should receive priority over other. Improve office atmosphere to give customers better feeling. Use of effective management information systems. Use appropriate techniques in evaluating customer need professionally. To deliver quality service top management should try to mitigate the gap
between customers expectation and employees perception.

7.3 Comments:
The bank can offer to its customer better service if all of its departments are
computerized and incorporated under local area network (LAN).

At the entry position the bank should enroll more expertise people to augment
quality services.

Now a days-conventional banking concept is outmoded. Now banks are

offering more ancillary services like credit card, on line services and many others. IFIC Bank Ltd. should differentiate its services adopting the modern facilities.

Bank is providing both internal and external training for the officers but bank
should be scrupulous about the training facilities so that official can implicate this in their job.

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Chapter-07 be well decorated

seriously.

People are very choosy about environment now a day, so bank premises should
and IFIC Bank Ltd. should look into the matter very

Bank should provide advances towards the true entrepreneur with

reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time.

7.4 Conclusion
From the learning and experience point of view I can say that I really enjoy my internship at IFIC Bank of Bangladesh Ltd. From the very first day, I was confident that this 3 months internship program at IFIC Bank Ltd. of Bangladesh will definitely help me to realize my future carrier in the job market. Performance analysis of a department of a bank is not so sufficient to measure and express perfectly within this short time of my internship period. But it is a great opportunity for me to get use to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the research report with necessary relevant information in my report. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employees in some sector, considering all of these very important factors, IFIC Bank should always try to improve their service level in every term. The marketing department should think freshly about their marketing objectives and practices. Rapid changes can quickly make yesterdays winning strategies out of date. As a developing private bank in Bangladesh, IFIC Bank shouldnt allow their client to get dissatisfied with their service. They have their competitors who actively striving to take the advantages in every side. During the course of my practical orientation, I have tried to learn the practical banking to relate it with my theoretical knowledge, what I have gathered and going to acquire from various courses.

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BIBLIOGRAPHY
1. Andley, K. K & Mattoo, V. J., Foreign Exchange Principles and Practices 2. Bender Paul S.; Design and operation of Customer service system 3. Chadha Skylark; Managing Projects in Bangladesh 4. Different prospectus of IFIC Bank Ltd. 5. Henry Waren; How to use your bank 6. Horne Van; Financial Management and Policy, Tenth Edition 7. Johnson Hazel; Financial Institution and Markets-A Global Perspective 8. Kotler Philip(1997); Marketing Management, Ninth Edition, Prentice Hall of
India pvt. New Delhi

9. Robbinson; The Management of Bank Funds, Second Edition 10. Scall Lawrence D. Charles Halley W.(1999); Introduction to Financial
Management, McGraw-Hill, Inc., Singapore

11. Report on Practical Orientation in Banks, Several Issues

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REFERENCES
Annual Report of IFIC Bank Ltd. 2007. Academy Calendar of IFIC Bank: 2007 Bangladesh Bank Annual Report: 2007-2008

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Acronyms
A/C Account APG Advanced Payment Guarantee B/L Bill of Landing BB Bangladesh Bank BOE Bill of Exchange BCD Bearer Certificate Deposit BGMEA Bangladesh Garments Manufacturers Exporters Association BML Bank of Maldives Limited CC Cash Credit CCI & E Chief Controller of Import & Exports CIB Credit Information Bureau CIF Cost Insurance & Freight CLP Credit Line Proposal DD Demand Draft DPN Demand Promissory Note ERC Export Registration Certificate EXP Export FC Foreign Currency FDBP Foreign Documentary Bill Purchase FDD Foreign Demand Draft FDR Fixed Deposit Receipt FSRP Financial Sector Reform Project GD General Diary HBL House Building Loan

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HOCC Head Office Credit Committee HO Head Office ID International Division IBC Inward Bills for Collection IBCA Inter Branch Credit Advance IBDA Inter Branch Debit Advance IFIC International Finance Investment & Commerce Bank Limited IMP Import IRC Import Registration Certification LC Letter of Credit LIM Loan against Imported Merchandise NCB Nationalized Commercial Bank NFCD Non-resident Foreign Currency Deposit OBC Outward Bills for Collection PAD Payment against Deposit PO Payment Order RFCD Resident Foreign Currency Deposit SAARC South Asian Association of Regional Co-operation SND Short Notice Deposit STD Short Term Deposit SOD Secured Over Draft TC Travelers Cheque TT Telegraphic Transfer TIN Taxpayers Identification Number UCPDC The Uniform Customs and Practices for Documentary Credit URC The Uniform Rules for Collection VAT Value Added Tax WES Wage Earners Scheme

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