Professional Documents
Culture Documents
Table of Contents
Contents
Chapter
Chapter-1
Introduction
Page
No.
Letter of Transmittal
Student Declaration
Acknowledgement
Executive Summary
Acronyms
i
ii
iii
iv
5
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
07
08
08
08
09
09
10
10
11
Introduction
Origin of the Report
Objectives of the report
Scope of the report
Limitations of the Study:
Analysis techniques
Required data
Methodology of the Study
Flow Chart of the Study
13
14
15
17
19
19
20
21
22
23
24
25
26
Chapter-04
27
32
32
32
33
34
Remittance
Activities:
Study on
Janata Bank
Ltd.
Chapter-05
5.1 SWOT Analysis of JBL
Finding &
5.2 Findings
Recommendation 5.3 Recommendations
Chapter -06
Conclusion
Reference/Bibliography
Appendix
36
45
48
50
53
55
57
59
61
67
68
73
75
77
80
81
83
84
85
List of Figure
Contents
Serial No.
Figure 1.1
Figure 3.1
Figure 3.2
Figure 3.3
Figure 3.4
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
Figure 4.7
Figure 4.8
Page No.
11
23
23
25
26
34
35
36
39
40
45
49
67
List of Graph
Serial No.
Graph 3.1
Graph 3.2
Graph 3.3
Graph 3.4
Graph 3.5
Graph 4.1
Graph 4.2
Graph 4.3
Graph 4.4
Graph 4.5
Graph 4.6
Graph 4.7
Graph 4.8
Graph 4.9
Graph 4.10
Graph 4.11
Graph 4.12
Graph 4.13
Graph 4.14
Graph 4.15
Contents
Page No.
27
28
28
29
30
42
44
47
49
51
53
54
62
63
63
64
65
67
73
74
List of Table
Contents
Serial No.
Table 3.1
Table 3.2
Table 4.1
Table 4.2
Table 4.3
Table 4.4
Table- 4.5
Table-4.6
Table-4.7
Table-4.8
Number of Branches
Table 3.2: List of Branches (Grade/Category wise)
JBL RGSM Branch Dhaka Inward Local Remittance
earning in 2011
JBL Rajanigandha Super Market Branch Dhaka in
Inward Local Remittance earning from 2008 to 2011
Web-based Foreign Remittance Instant/Spot Cash
Payment System (EFT).
Country wise Foreign Remittance of JBL from 2004 to
2010
National Inward Remittance of Janata Bank Limited
National Inward Foreign Remittance of JBL (Last 3
months of 2011)
JBL RSMB Dhaka in Inward Foreign Remittance earning
from 2008 to 2011
JBL Rajanigandha Super Market Branch Dhaka in
Inward Foreign Remittance earning in 2011
Page
No.
24
24
53
54
60
61
62
64
73
74
Acronyms
JBL
CEO
MD
CSR
A/C
DMCBL
NPAT
ROI
ROA
EPS
HO or H/O
PO
DD
TT
MT
CIBTA
IBCA
IBDA
TIN
IBC
OBC
CAD
GD
IDT
ESS
F.D.D
F.T.T.
SRC
Pay Order
Demand Draft
Telegraphic Transfer
Mail Transfer
Computer Inter Branch Transaction Account
Inter Bank Credit Advice
Inter Branch Debit Advice
TAX Identification Number
Inward Bills for Collection
Outward Bills for Collection
Cash Against Documents
General Diary
Inter Data Transfer
Education Savings Scheme
Foreign Demand Draft
Foreign Telegraphic Transfer
Speedy Remittance cell
Chapter-01
Introduction
1.1
Introduction
This report has a certain purpose to focus on the operations of Remittance of Janata Bank
Limited. Without any doubt Remittance catches the flash as it has great importance in the
balance of trade in economy. Banks plays a vital role in this discipline.
In the age of globalization, the importance of banking sector is beyond description. Banking
sector is going ahead with the improvement and invention of new services and offerings to
gather and retain more customers. Besides other banking activities Remittance has become
an essential part of a Banks daily activity to perform. In our daily life we usually use the tools
like DD, TT, MT etc. in order to sent money from one place to another. Again, we know that
foreign remittance has a great impact on our national economy. Internship in Janata Bank Ltd
(Rajanigandha Super Market Branch Dhaka) has brought me the opportunity to know
details about various tools of remittance. At the vary beginning of the internee period, I was
too much interested about Loan sanctioning and recovery system of a bank like Janata Bank
Ltd but in a few days I recognized that my branch deals with remittance more then any
other banking activities including loans. Working with remittance system in daily Banking
day turns my attention from loans to remittance which creates the background of the study.
1.2
Although total B.B.A. program combines an excellent blend of theoretical and classroom
knowledge but aside this internship program facilitates a student to bring light on their
theoretical knowledge to apply this in practical ground.
This report is based on an internship program at Janata Bank Limited to gather practical
knowledge about banking activities. This is followed by practical experiences in the
Rajanigandha Super Market Branch Dhakaof Janata Bank Limited. Each intern must carry
out a specific project, in order to report on specific activity of the organization. Consequently
a report based on the projects is to be submitted to both the authority of Janata Bank Ltd and
the University. My topic for this internship report is Remittance Activities:Study on
Janata Bank Ltd. Janata Bank Ltd deals with almost every activities of Banking but
Rajanigandha Super Market Branch Dhaka has a special involvement with remittance. So it is
the main reason behind choosing this topic.
1.3
1.4
This study would focus on the following areas of Janata Bank Limited.
Actual Remittance activities of Janata Bank Limited.
Overview the current procedure of remittance management.
Overview the current procedure of inward and outward foreign remittance
management.
Organizational structures and responsibilities of management.
Ahsanullah University of Science & Technology
Each of the above areas would be critically analyzed to determine the proper efficiency of
Janata Banks Remittance Management system.
1.5
There were some problems while conducting the study. A whole hearted effort was applied to
conduct the study and to bring a reliable and fruitful result. In spite of this, there exist some
limitations, which acted as a barrier to conduct the study. The limitations were:
Time limitation: It was one of the main constraints that affected covering all aspects of the
study.Very short time frame- the report had to be conducted in a short duration (3 months).
Lack of Secondary Information: The Remittance data of Janata Bank Ltd. is not much
available over the net. Secondary source of information was not sufficient for the completion
of the report.
Limitation of the Scope: Much confidential information was not disclosed by respective
personnel of the department
In many case the relevant authorities are not helpful to provide information.
The organization maintains strict confidentiality about their financial and other
information. They are afraid of any type of information leakage to their
competitors. So there was always difficulty to have appropriate information from
them.
The main difficulty of the study was insufficiency of current information relevant
to the study.
Consolidated data related to the study were not given due to time shortage.
All required information was not available in any specific branch of the bank and
there was also limited opportunity to visit more than one branch.
Duration of the study was too short to find out the exact calculation from the
employee.
Scope of my study is so wide that analytical and comprehensive study is not
possible.
Lack of sufficient books, papers and journals etc.
Web site of the Organization isnt up to date to gather valuable information.
1.6
Analysis techniques
Both qualitative and quantitative methods were applied for preparing this report. The data
were analyzed and presented by Microsoft excel and shows percentage, graphical
presentation and different types of charts. Best effort was given to analyze the numerical
findings.
1.7
Required data
I have mainly focused on numerical data in preparing the report. Also I have used theoretical
portion as the demand of the report. Analyzing Remittance management of a bank, both
theoretical and technical knowledge are necessary for execution. Then everything with
accuracy, I have analyzed and made conclusion.
1.8
While conducting the study, sources were explored for primary information and data. But
hardly any updated data could be found. In the absence of updated information or data
dependence on secondary data has been inevitable. However, whenever possible primary data
has been used. Data were also collected by interviewing the responsible officers and from
some documents & statements printed by the Janata Bank Ltd. Janata Bank Ltd. also helped
me in collecting data providing books and Banks annual report.
Secondary:
A. Annual report of JBL.
B. Relevant documents related to the study as provided by the officers.
C. Periodicals published by Bangladesh Bank.
D. Different publications and relevant circulars.
E. Official website of JBL
F. Manuals of JBL
10
1.9
THE APPROACH
The Literature Review
Theoretical Consideration
METHODOLOGY
SUBMISSION OF THE
REPORT
PRIMARY SOURCES
a) Face to face conversation with
Bankers
SECONDARY SOURCES
a) Annual report
b) Working papers
c) Office files
d) Selected Books
COLLECTING INFORMATION
ANALYZING
PREPARING THE REPORT
SUBMISSION OF THE
REPORT
Figure -1.1: Flow Chart of the Study
11
Chapter-2
12
13
former State Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a fullfledged office of the central bank of Bangladesh and the entire undertaking of the State Bank
of Pakistan in, and in relation to Bangladesh has been delivered to the Bank.
Bangladesh Bank has been entrusted whit all of the traditional central banking functions
including the sole responsibilities of issuing currency, Keeping the reserves, formulating and
managing the monetary and credit policy, regulating the banking system, stabilizing domestic
and external monetary value, preserving the par value of Bangladesh Taka, fostering
economic growth and development and the development of the countrys market.
Janata Bank Limited is the 2nd largest state owned commercial bank in Bangladesh.
Immediately after the liberation of Bangladesh in 1971, the erstwhile United Bank Limited
and Union Bank Limited were renamed as Janata Bank.
The rate of growth and development of banking sector in the country was extremely slow
until 1983 when the government allowed to establish private banks and started
denationalization process: initially, the Uttara Bank in the same year and thereafter, the
Pubali Bank, and the Rupali Bank in 1986.
Modern banking system plays a vital role for a nations economic development. Over the last
few years the banking world has been undergoing a lot of changes due to deregulation,
technological innovations, globalization etc. These changes in the banking system also
brought revolutionary changes in a countrys economy. Present world is changing rapidly to
face the challenge of competitive free market economy. It is well recognized that there is an
urgent need for better, qualified management and better-trained staff in the dynamic global
financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is
facing challenges from different angles though its prospect is bright in the future.
14
25 percent. The NCBs have large capital shortfalls with a risk-weighted capital asset ratio of
just 0.5 percent (June 2006) as against the required 9 percent. For the PCBs risk-weighted
capital asset ratio stood at 10 percent. Bangladesh Bank issued a good number of prudential
guidelines during the year 2006 and the first quarter of 2007 which among others relate to:
Rationalization of prudential norms for loan classification and provisioning,
Policy for rescheduling of loans,
Designing and enforcing an "integrated credit risk grading manual",
Credit rating of the banks, and
Revisions to the make-up of Tier-2 capital.
15
16
5. Grameen Bank
6. The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
7. Bangladesh Development Bank Ltd
8. Bangladesh Someday Bank Limited(Cooperative Bank)
9. Ansar VDP Unnyan Bank
10. BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited)
2.3.5 Foreign Commercial Banks
1. Citibank
2. HSBC
3. Standard Chartered Bank
4. Commercial Bank of Ceylon
5. State Bank of India
6. Habib Bank Limited
7. National Bank of Pakistan
8. Woori Bank
9. Bank Alfalah
[Source: www.bangladesh-bank.org -Financial System >Banks , Bangladesh Bank
&http://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh]
17
Chapter-3
18
3.2.2 Values
Professionalism
Diversity
Growth
Values
Integrity
Dignity
Accountability
19
3.2.3 Mission
Janata Bank Limited will be an effective commercial bank by maintaining a stable growth
strategy, delivering high quality financial products, providing excellent customer service
through an experienced management team and ensure good corporate governance in every
step of banking network.
3.2.3 Objective
The bank plays a vital role in socio-economic development of Bangladesh
A) Agro credit.
B) Micro credit
C) SME Credit
D) Project loan (Industrial credit)
E) General Loan
Maximize profit through customer satisfaction and contributing in national economy.
Doing foreign exchange and trade to uphold the national interest and balance of trade
in favor of Bangladesh.
Blocking all kinds of illegal monitory activities with emphasis on money laundering
as per Govt. instructions and Bangladesh Bank Circulars.
Brining new technology based high quality customer service and products through IT
such as ATM. ONE STOP SERVICE, ONLINE BANKING. CREDIT AND DEBIT
CARD, AUTOMATED CLEARING HOUSE FACILITY.
Giving quality merchant bank service to the customer and maintaining healthy
portfolio.
20
The mission of the bank is to actively participate in the socio- economic development of the
nation by operating a commercially sound banking organization, providing credit to viable
borrowers, efficiently delivered and competitively priced, simultaneously protecting
depositors funds and providing a satisfactory return on equity to the owners.
The Board of Directors is composed of 15 (fifteen) members headed by a Chairman. The
Directors are representatives from both public and private sectors.
The Bank is headed by the Managing Director (Chief Executive), who is a reputed banker.
The corporate head office is located at Dhaka with 35 (thirty five) Divisions.
21
Recently The Bank has been recognized internationally and domestically for
its good performance.
It may be noted here that Janata Bank Limited has been working hard in improving the
customer services in recent times by introducing a number of IT-based reform measures
22
Manager
Senior Executive Officer
Executive Officer
7%
25%
16%
Knowledge building
20%
25%
Disaster mitigation
23
Number of Branches
Branches in Bangladesh
868
Rural Branches
486
Urban Branches
Overseas Branches
Total Branches
382
4
872
Table 3.1 Number of Branches
Name
Local Office
Corporate -1 Branches
Corporate -2 Branches
Overseas Branches
Grade - 1 Branches
Grade - 2 Branches
Grade - 3 Branches
Grade - 4 Branches
No
1
12
41
4
204
209
294
107
872
24
Deposit
Products
Products
of JBL
Credit
Products
E-Services
ATM
Operation
25
Function of
Janata Bank
Limited
General function
Development
function
Representative
function
Service function
Transaction of foreign
currencies, information sharing,
Consulting and others service
functions.
Collecting the gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and
Distribution Companies.
Regular collection of electricity bills of Dhaka Electricity Supply Authority, Dhaka
Electricity Company, Bangladesh Power Development Board and Rural
Electrification Board.
26
Taka in Million
2006
2007
2008
2009
2010
4213
4963
7003
8578
12037
1681
3145
2982
4907
Year
Source: Janata Bank Annual Report -2010
The Graph-3.1 shows that, The Net Profit of JBL. up to December 2010 is Tk.4907
Million which is higher than Tk. 2982 Million in 2009. Where, in 2006 the net profit of
JBL is zero.
So we can say that, the growth of Net Profit as compared to Operating Profit is
respectable.
27
3.9.2 Compare between Non- Interest Income and Interest Income of JBL
from 2009 to 2010
Taka in Million
20000
15000
10000
5000
0
2009
2010
4722
7283
15401.7
17684.9
Year
Source: Janata Bank Annual Report -2010
Graph 3.2: Compare between Non- Interest Income and Interest Income of JBL
The Graph 3.2 shows that, The Non Interest Income of JBL. up to December 2010 is
Tk.7283 Million which is higher than Tk. 4722 Million in 2009. So we can say that, the
growth of Non Interest Income as compared to Interest Income is respectable.
Taka in Million
5000
4000
3000
2000
1000
0
Net Profit Afret tax
Janata
Bank Ltd.
4907
Rupali
Bank Ltd.
600.6
Agrani
Bank Ltd.
3516.8
Sonali
Bank Ltd.
2737.6
The Graph3.3 shows that, the Net Profit after Tax (NPAT) of JBL up to December 2010
is Tk.4907 Million which is higher than NPAT of Rupali Bank Ltd. (Tk. 600.6 Million),
Agrani Bank Ltd. (Tk. 351608 Million) and Sonali Bank Ltd. (Tk. 2737.6 Million).
28
Percentage
After analyzing the chart we can say that the financial position of Janata Bank Ltd. is
batter than other Nationalized Commercial Bank of Bangladesh.
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Return on Investment (ROI)
Janata
Bank Ltd.
4.89%
Rupali
Bank Ltd.
11.22%
Agrani
Bank Ltd
14.75%
Sonali
Bank Ltd.
9.39%
1.45%
1.15%
1.33%
0.03%
Name of Bank
Source: Annual Report- 2010 of the above Banks
Graph 3.4: Comparing Return on Investment (ROI) and Return on Assets (ROA) with four
Nationalized Commercial Bank of Bangladesh
The Graph 3.4 shows that, the Return on Investment (ROI) of JBL up to December 2010
is 4.89% which is lower than the Return on Investment (ROI) of Rupali Bank Ltd.
(ROI-11.22%), Agrani Bank Ltd. (ROI-14.75%) and Sonali Bank Ltd. (ROI-9.39%).
Where, the Return on Assets (ROA) of JBL up to December 2010 is 1.45% which is
higher than the Return on Assets (ROA) of Rupali Bank Ltd. (ROA-1.15%), Agrani
Bank Ltd. (ROA-1.33%) and Sonali Bank Ltd. (ROA-0.03%).
After analyzing the chart we can say that the financial position of Janata Bank Ltd. is
batter than other Nationalized Commercial Bank of Bangladesh though ROI is lower.
29
Taka
Janata Bank
Ltd.
98.16
Rupali Bank
Ltd.
48.02
Agroni Bank
Ltd.
64.35
Sonali Bank
Ltd.
30.42
Name of Bank
Source: Annual Report- 2010 of the above Banks
Graph 3.5:- Comparing Earning per Share (EPS) with four Nationalized Commercial
Bank of Bangladesh
The Graph- 3.5 shows that, Earning per Share (EPS) of JBL up to December 2010 is
Tk.98.16 which is higher than EPS of Rupali Bank Ltd. (Tk48.02), Agrani Bank Ltd.
(Tk. 64.35) and Sonali Bank Ltd. (Tk. 30.42).
After analyzing the chart we can say that the financial position of Janata Bank Ltd. is
batter than other Nationalized Commercial Bank of Bangladesh.
30
Chapter-04
Remittance Activities:
Study on Janata Bank Ltd.
31
32
Inward
Remittence
Outward
Remittence
Foreign
Remittance
Inward
Remittence
Outward
Remittence
33
Place-1
4.
Beneficiary
(Money Receiver)
1.
Customer
(Money Sender)
Go to
Remittance
department
2.
Issuing Branch
(Taking money with
bank commissions)
Pay
Money
Order Send
3.
Paying Branch
(Getting order from
issuing Branch)
By this way money is sent from one branch to another branch within the country. Here in
place-1; any customer pays money with bank commission at the Issuing Branch and
Beneficiary collect money from Paying Branch at Place-2.
In this case, the Issuing Branch only sent a written document to the Paying Branch in order to
pay the money to the Beneficiary.
Money is sent from one branch to another branch within the country by following wayBank remittance may be categorized as Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
Payment Order (PO)
Traveller Cheques.
34
Telegraphic
Transfer (TT)
Demand
Draft (DD)
Inward
Remittance
Payment
Order (PO)
Mail Transfer
(MT)
Traveler
Cheques.
Local or
Inland
Remittance
Activities of
JBL
Telegraphic
Transfer (TT)
Demand
Draft (DD)
Out ward
Remittance
Payment
Order (PO)
Mail Transfer
(MT)
Traveler
Cheques.
The following register books are to be maintained for remittance concern: DD. MT. TT Advice Register
DD Payment registers Day Book
TT Payment Register Book
Ex-Advice Payment Register Book
Above all this service is performed by the Remittance department efficiently.
Here, I am now explaining in brief the process and activities of local remittance in JBL and
JBL Rajanigondha Super Market Branch, Dhaka as well.
35
Data //
On demand pay to .. Or
Order the sum of . Taka(..)
for value received.
Janata Bank Ltd.
..
Officer
After analyzing this sample Demand Draft we identify the following feature1. Serial Number (No. D.D. 012345)
2. Branch Name
3. Amount of money (Numerical)
4. Date of Time
5. Name of Beneficiary
6. Amount of money (in ward)
7. Two Officer signature (with P.A. number)
Conformity and inconformity between Cheque and Demand Draft.
Explanation
1. Meaning
2. Facility
Cheque
A cheque is an unconditional
order directing the banker to
pay a certain sum of money
only to or to the order of a
certain person.
The current account and
saving account holders get a
Demand Draft
A draft is an order to pay money
drawn by one office of a bank
upon another office of the same
bank for a sum of money payable
to order on demand.
Draft is issued to anyone even to
non-account holders.
36
cheque facility.
3. Purpose
Cheques are used to make
payments
or
to
settle
transactions. There is no
certainty of payment in the
case of cheques as they can be
dishonored or payment can be
stopped.
4. Drawer
In case of cheque, the drawer
is the customer of the bank.
5. Bank charges The bank may not charge for
issuing the cheque book.
6. Dishonour
Cheques can be dishonored
for various reasons.
7. Stopping of In case of cheque, the drawer
payment
can ask the bank to stop
payment of the cheque even if
it is delivered to the payee.
8. Popularity
Cheques are very common
and
popular
mode
of
payment.
9. Clearance
In case of cheque, there is a
need for clearance.
10. Parties
Three parties are involved in
involved
cheque transaction viz., (a)
Drawer, (b) Drawee, and (c)
Payee.
37
Drafts is Tk. 20/- (including VAT Tk. 3/-) for the amount of Tk. 1 to Tk. 20000.After that
that exchange is charged Tk. 1/-for each Tk. 1000/-, and VAT is 15% of the commission.
The voucher will be passed by the following way- [Issuing Branch]
Cash Transfer
Cheque Transfer
Transfer
order
Mail/Letter
Dr.
: Cash A/c
by
For any amount of DD issued, a relative DD Advice and sent to paying branch where the
Advice converted into Voucher.
In an advice we find following items:
1. Name of Issuing Branch of JBL and code number.
2. Name of Drawee or Paying Branch of JBL and code number.
3. Date
4. Advice No.
5. D.D. No.
6. Beneficiary name
7. Amount of money both numeric and word.
8. Authorized signature.
This advice is done four copies. First two copies is send to the Drawee/Paying branch, third
copy is send to the Head Office (HO) with daily extracts and the fourth copy is adjoining in
Draft advice Books as an office copy.
Draft advice Book normally printed by special ink and it have a serial number.
38
From
Originating Br.
To
Responding Br.
D.D. No
Advice No.
Code No. of the Sub Head of
Inter Br. Transaction A/C.
Originating Br.
Originating Date
Responding Br.
Code
Transaction Code
Particulars
Amount
.
Officer (PA No.)
DEBIT
----------------- RESPONDING
39
For Issuance of DD against cheque or partys instruction, respective account will be debited after
verification of customers signature by the Cash Department.
The Demand Draft shall be prepared Branch wise controlling number will be given on the draft
besides the printed numbers putting an oblique (/) in between. The amount of draft will be
protecting graphed. The description of the DD will be recorded in the DD issuing Register.
The draft number should be written on the voucher & DD Application form.
Draft should be signed jointly by the GB Head & another authorized signatory with P.A. number.
Test is required for money transfer value of Tk.50,000.00 or over. The tested message will be
sent to the paying branch through Fax or E-Mail. Test no. should be written on the CIBTA and on
the face of the Demand Draft in Red Ink.
The CIBTA should be prepared in triplicate. Original to be sent to the drawee branch. Second
copy for the branch accounts department and the third copy should be retained by the Remittance
Department (in the CIBTA book) for ready reference.
Concern Officer must ensure that acknowledgement is obtained from the client or his authorized
representative on the counter folio and issuing register.
40
receipt at branch. Cases of delay will be reported to the Head Office & a copy to the Regional
Office of the purchase office. These will be numbered with D.D.R numbers, promptly
acknowledge, entered individually in the Demand Draft received for realization register,
without passing any entries.
b) Clearing cheque and cheque on the branches will be paid or returned unpaid the same day.
Other Demand Drafts entered in the register will be presented or payment to the drawee
through the cash department.
c) On realization the proceeds together with the overdue interest, if any Demand Draft will be
credited to the purchasing offices in the Janata Bank General Account sending Transfer
Responding, Advises (TRA) and reported to Head Office on schedule. Unpaid DDR's will be
returned to the purchasing offices along with the objection Memo.
41
The process of entry D.D. PaymentIf the payment is to be made If the payment is to be made
after receipt of the Advice
before receipt of the Advice
If the amount of Dr. : Bills Payable A/C , D.D. Dr. : Sundry Assets A/C. D.D.
Paid W/A
draft is pain in cash Payable
Cr. : Cash A/C
If the amount of Dr. : Bills Payable A/C, D.D. Dr. : Sundry Assets A/C , D.D.
paid W/A
draft is pain by Payable
clearing House
Cr. : CIBT A/C Local Office Cr. : CIBT A/C Local Office
If the amount of Dr. : Bills Payable A/C, D.D. Dr. : Sundry Assets A/C , D.D.
paid W/A
draft is pain by Payable
transfer
(from
Cr. : Partys A/C or CIBT A/C
Cr. : Partys A/C or CIBT A/C
Account)
Here, we find that, sometime Drawee Branch is obliged to pay money (Taka) before receive
draft advice. In this case this money is provided from Sundry Assets A/C, D.D. paid W/A.
When that type of advice will get then following voucher will be passed-
Taka In Million
2000
1500
1000
500
0
D.D. paid without advice (Local)
D.D. Paid without
advice(Foreign)
2009
1399.48
2010
1580.965
1567.6
616.95
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Sundry assets; page-147
Graph 4.1: D.D. paid without advice both local and foreign from 2009 to 2010
After analyzing the Graph-4.1we find that in 2010 JBL paid 1580.965 million (Taka)
before receiving D.D. advices which is higher than 1399.48 million in 2009.
42
4.6.5. Duplicate DD
In some cases, it may be happened that the DD is lost and reported to the concerned
Branches. In this case, issuing Branch will communicate with the paying Branch and will
obtain confirmation regarding non-payment of the DD & Payment Branch will exercise
cautions against payment of DD including caution marking on the respective DD advice with
the words "Care Reported Lost" issuing Branch will then issue a duplicate DD on obtaining
of indemnity bond from the Applicant signed by two persons known to the Bank s sureties. In
such case, duplicate DD be marked with the words: "DUPLICATE IN LIEU OF ORIGINAL
NO ......."
Issuance of Duplicate Payment Order
Duplicate pay order may be issued on receipt of written request of the purchaser along
with GD at local police station. Signature of the purchaser should be verified from the
original application.
Issuing branch should obtain an indemnity bond on a non judicial stamp paper or
adhesive stamp for the adequate value in presence of at least two witnesses. The
Branch will thereafter write to Head Office for their approval to issue duplicate
payment order.
The Head office on receipt of the request from the issuing branch will immediately
issue caution circular from Cash Against Documents (CAD) to all the branches
regarding loss of the pay order asking them to record stop payment. The Head Office
will thereafter issue clearance to the issuing branch for issuing a duplicate draft in lieu
of original reported lost.
On receipt of clearance from the Head Office, the issuing branch will issue a pay
order
clearly
the
words
DUPLICTAE
ISSUED
INLIEU
OF
ORIGINALPAYMENT ORDER-. DATED------ in bold letters on the top of the
front page of the payment order. The charges for issuance of duplicate pay order
should be realized from the client.
A note to this effect is made on the original application on form and on the Pay Order
Issued Register.
Insurance of duplicate DD be noted against the entry of original one.
43
1400000
1200000
Taka
1000000
800000
600000
400000
200000
0
D.D. Cancellation
2009
456725
2010
1361711
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Sundry assets; page-147
Graph 4.2 - Total D.D. Cancelled at JBL in 2009 and 2010
The Graph 4.2 shows that, the withdrawal of Demand Draft (D.D.) at JBL has been
increased Taka 13,61,711/- in 2010 than Taka 4,56,725/- in 2009.
44
Charges of P.O.
Amount of P.O.
01-20,000
20,001-100,000
100,001-500,000
More than 500,000
Commission
VAT 15% on
Commission
Total
Taka
20
30
50
100
3
5
8
15
23
35
58
115
Data //
Pay
to
Manager
45
After analyzing this sample Demand Draft we identify the following feature1.
Serial Number (No. D.D. 012345)
2.
Branch Name
3.
Amount of money (Numerical)
4.
Date of Time
5.
Name of Beneficiary
6.
Amount of money (in ward)
7.
Two Officer signature (with P.A. number)
46
Taka in Million
2009
2152.28
2010
2442.26
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
Graph 4.3- Total Payment Order Issued at JBL in 2009 and 2010
The Graph 4.3 shows that, the issuance of Payment Order (P.O) at JBL is increased
Taka 2442.26 Million in 2010 than Taka 2152.28 Million in 2009.
4.7.2 Duplicate PO
As Bank's Payment Order is not transferable, Duplicate thereof is issued to the purchaser
without obtaining letter of indemnity provided they confirm in writing that the originals have
been lost and that these will be returned to the Bank whenever traced.
Issuance of Duplicate Payment Order
Duplicate pay order may be issued on receipt of written request of the purchaser along
with FIR/GD at local police station. Signature of the purchaser should be verified
from the original application.
Issuing branch should obtain an indemnity bond on a non judicial stamp paper or
adhesive stamp for the adequate value in presence of at least two witnesses. The
Branch will thereafter write to Head Office for their approval to issue duplicate
payment order.
The Head office on receipt of the request from the issuing branch will immediately
issue caution circular from CAD to all the branches regarding loss of the pay order
asking them to record stop payment. The Head Office will thereafter issue clearance
to the issuing branch for issuing a duplicate draft in lieu of original reported lost.
On receipt of clearance from the Head Office, the issuing branch will issue a pay
order
clearly
the
words
DUPLICTAE
ISSUED
INLIEU
OF
ORIGINALPAYMENT ORDER-. DATED------ in bold letters on the top of the
front page of the payment order. The charges for issuance of duplicate pay order
should be realized from the client.
47
A note to this effect is made on the original application on form and on the Pay Order
Issued Register.
On receipt of application along with the Pay Order, signature of the applicant should be
verified from the original application. It must be ascertained that no duplicate P.O. has
been issued against the same.
2 No refund will be made to the purchaser against duplicate without proper endorsement
from the beneficiary of P.O. However, if the payment order not submitted to the
beneficiary and the payment order not utilized amount may be refunded as per purchaser
written request.
3 The following entries are passed:
Debit: Bills Payable Account Pay Order issued.
Credit: Partys Account.
4
5
6
The Payment Order is cancelled by tearing off signatures thereon and a note to this effect
is made on the application form and on the Register. Tee entry is to be reversed.
The cancelled Payment Order should be attached with the debit voucher.
If the Payment Order is placed through clearing by the purchasers Bank, in that case the
Collecting Banks endorsement must confirm that purchasers account is credited.
48
Dhaka) a special MT register book is maintained as in the case like DD. MT normally issued
from branch to branch of the same Bank. An extra document is needed for Mail Charge.
Normally the Mail is given Tk. 25/- for the amount Tk. 50,000/- and above. Below 50,000/there is no any Mail Charge. The commission charged for MT is given below
Tk. 1 up to Tk. 49,000/- Tk. 15/Tk. 50,000/- and above Tk. 40/Example Receipt (MT/TT)
Date: ......................
Payees Name: ................................................................
Branch Name: ...............................................................
Amount: ................................... Exchange...................
Commission: ........................ Postal Charge: .............
M.T. Paybale
4000000
Taka
3000000
2000000
1000000
0
M.T. Paybale
2009
1507414
2010
3647007
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
The Graph 4.4 shows that, the total M.T. Payable at JBL is increased Taka 36, 47,007/in 2010 than Taka 15, 07,414/- in 2009.
Ahsanullah University of Science & Technology
49
Process of Payment:
After receiving the MT advice it is recorded to the Inward Mail Register. Then it is recorded
in MT payable register and following voucher is passed.
Dr. : CIBT A/C (Drawer zone )
Cr. : Bills Payable A/C , MT Payable
When money transfer to beneficiary A/CDr. : Bills Payable A/C , MT Payable
Cr. : Partys A/c
01-20000
50000
100000
Commission
25
50
100
VAT 15%
on
Commission
8
15
Telephone / Mail
Charge
Total
Taka
30
30
25
88
145
50
The client shall fill in and sign the T.T. Application Form and deposit TT amount
over the cash counter including the commission/VAT/Postage.
After receiving the cash Teller will prepare IDT (Cash suspense) for the entire
amount and submit to Remittance Department.
Remittance Department will prepare CIBT Account (Computer Inter Branch
Transaction Account) to the Drawee branch. Each CIBTA shall have outward
number. Concern officer will write the remittable amount and the name of the
beneficiary, account number and the Beneficiarys Bank name and branch clearly in
the CIBTA. Money transfer value of Tk.50, 000.00 or over test number shall be
applied on the top of the CIBTA in Red Ink. The IBCA should be signed jointly by
the Branch Head and other authorized signatory. CIBTA to be sent to the drawee
branch by FAX or E Mail when FAX is not available or become out of order.
CIBTA should be prepared in triplicate. The original should be sent to the drawer
branch, second copy to be submitted to branch accounts department and the third
copy will be retained by the remittance department in the CIBTA for ready reference.
Any subsequent corrections or alteration of the TT text must be accompanied by
Nil test along with the cautioning words PLEASE AVOID
DUPLICATION/DUPLICATE PAYMENTS.
Incoming TT (CIBTA) may be received through Fax or E-Mail when Fax is not
available or become out of order. After receiving the message (CIBTA) from the
remitting branch concern officer will acknowledge receipt of the said transfer and
verify the signature. Amount for Tk.50,000.00 or above Test no. should be provided
in the CIBTA. GB Head will verify the authenticity of the test and affix a stamp Test
Agreed. And sign. Contents of the incoming TT message shall be recorded in the
Incoming TT Register.
Taka
T.T. Payable
80000000
70000000
60000000
50000000
T.T. Payable
2009
62465871
2010
73011561
Year
Source- Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
51
The Graph 4.5 shows that, the total T.T. Payable at JBL is increased Taka 73011561/- in
2010 than Taka 62465871/- in 2009.
Debit:
Computer Inter Branch Transaction Account (CIBTA) -90101006
Credit:
Bills Payable A/C, TT payable
Debit : Bills Payable A/C, TT payable
Credit: Customer/ Partys A/C
52
%
10%
3%
65%
22%
Total
100% 728,316
10830
Amount (Tk.)
72,832
21,849
473,405
160,230
Table 4.1: JBL RGSM Branch Dhaka Inward Local Remittance earning in 2011
Amount
500000
Taka
400000
300000
200000
100000
0
Amount
DD
MT
TT
PO
72832
21849
473405
160230
Graph 4.6 : JBL RGSM Branch Dhaka Inward Local Remittance earning in 2011
After analyzing the above Table 4.1 and Graph 4.6, we find that the highest amount of
remittance is earned from TT at RGSM Branch and then the PO, DD and MT
departments come respectively.
53
2008
9987
682,450
2009
11015
712,054
2010
10096
708,253
2011
10830
728,316
Table 4.2-: JBL Rajanigandha Super Market Branch Dhaka in Inward Local Remittance
earning from 2008 to 2011
Taka
800000
700000
600000
500000
400000
300000
200000
100000
0
No. of Transaction
Amount
682450
9987
712054
708253
11015
10096
728316
10830
2008
2009
2010
2011
9987
11015
10096
10830
682450
712054
708253
728316
Year
Graph 4.7 : JBL Rajanigandha Super Market Branch Dhaka in Inward Local
Remittance earning from 2008 to 2011
The Graph 4.7 shows that, Inward local remittance through JBL Rajanigandha Super
Market Branch Dhaka. up to December 2011 is Tk.728316/- which is higher than inward
foreign remittance is Tk. 708253/- in 2010. Inward local from JBL Rajanigandha Super
Market Branch Dhaka reached record high of Tk. 712054 million in 2009 against
Tk.682450 million in 2008 and continue to play an important supporting role in
strengthening the economy of the county Janata Bank ltd.
54
Outward clearing:
Ahsanullah University of Science & Technology
55
Accounting Entries: Clients depositing cheques/instruments of other banks for crediting the
proceeds in their Accounts i.e. called outward clearing:
Dr. : Clearing Adjustment A/c
Cr. : Respective clients A/c (voucher deposit slip)
Cr. : Other branches by responding CIBTA
Inward Clearing:
Dr. :Respective Client (voucher cheques/other instruments - for Honored Figures.)
Dr. : Other Branch CIBTA (responding)
The instruments drawn on JB are received from other banks in the clearinghouse.
56
The amount and numbers of instruments are entered in the house from the main schedule
of respective banks.
The instruments with schedules are arranged branch wise
The instruments are sent to branches concerned for clearance and IBCA (inter branch
credit advice) are collected from them for honored cheque.
The dishonored instruments are sent back to respective banks through the second house.
57
58
59
Bank under Taka Drawing Arrangement with Janata Bank Ltd. Main Feature of Foreign
Remittance Payment System stated below:
Table 4.3: Web-based Foreign Remittance Instant/Spot Cash Payment System (EFT).
There are two types of foreign Remittance Activities
1. Inward Foreign Remittance
2. Outward Foreign Remittance.
Janata Bank Ltd. is performed both inward and outward foreign remittance activities.
60
2004
2005
2006
2007
2008
2009
JanataEchange
Co., Italy
1182.5
2077.1
3102.1
3513
2289.8
144.8
5638
5666.7
9188.3
12548.8
16207.7
2279.5
2901.7
4714
6878.2
8738.1
Janata
Bank, 5196
UAE Branches
Other Exchange 2143.5
Co.
Kuwait
3468.6
4089.3
5652.6
7615.9
7780.1
6764.3
Saudi Arabia
4057.9
3762.7
3598.3
3025.2
4536
7718.2
Oman
1129.8
1095.6
1106.2
1171
1341.6
1038.7
Bahrain
785.2
817.4
853.2
834.5
916.7
716.1
Greece
537.9
697.9
591.5
524.5
UK
2213.3
6174.9
Qatar
196.1
190.8
149.2
173.6
200.6
118.9
United States
26.9
29.2
132.8
15.
222.3
285.7
Malaysia
1139.3
623.9
264.2
208.7
113.2
23.9
Singapore
0.2
0.4
5.3
0.7
20.2
98.1
Korea
23.2
2.5
Canada
166.7
6.6
7.2
Australia
1404
Other
sources 4556.4
(SWIFT/Telex)
5945.7
5288
5484.4
6272.1
6334.2
Grand Total
26572.8
29257.3
36788
45924.4
56190.1
24063.5
61
2004
2005
2006
2007
2008
2009
2010
Year wise JBL contribution ($
24063.5 26572.8 29257.3 36700 45924.4 56190.1 52640
million)
2010
2009
2008
2007
National
802,270 Million
738,773 Million
616442 Million
451890 Million
Percentage
6.56%
7.60%
7.45%
8.12%
*Source: Janata Bank Ltd. ; Annual Report 2010; Directors Report-Foreign Remittance; page-78
62
802270
800000
738773
616442
600000
400000
200000
451890
52640
56190
45924
36788
2010
2009
2008
2007
JBL Remittance
2010
52640
2009
56190
2008
45924
2007
36788
National Remittance
802270
738773
616442
451890
*Source: Janata Bank Ltd. ; Annual Report 2010; Directors Report-Foreign Remittance; page-78
Percentage
10.00%
8.00%
8.12%
7.60%
7.45%
2010
2009
2008
2007
6.56%
7.60%
7.45%
8.12%
6.56%
6.00%
4.00%
2.00%
0.00%
Percentage
*Source: Janata Bank Ltd. ; Annual Report 2010; Directors Report-Foreign Remittance; page-78
The above Graph 4.9 & Graph 4.10 shows that, Inward National Foreign Remittance up
to December 2010 was 802,270 Million and Inward Foreign Remittance through Janata
Bank Ltd. was 52640 Million, which was 6.56% of total countrys remittance. In 2009,
Inward National Foreign Remittance was 738773 Million where Inward Foreign
Remittance through Janata Bank Ltd. was 56190 Million, which was 6.56% of total
countrys remittance. In 2008 and 2007 Inward National Foreign Remittance were
616442 Million and 451890 Million respectably where Inward Foreign Remittance
63
through Janata Bank Ltd. were 45924 Million and 36788 Million which was 7.45% and
8.12% of total countrys remittance respectively.
After analyzing the above chart, we find that the achievement of JBL in attracting
foreign remittance is increased year by year except 2009 and 2010 due to economic
crises. But on the contrary, the percentage of foreign remittance through JBL is
decreased year by year as compared to countrys foreign remittance.
National earning
(Millions U.S. $)
Janata bank
(Millions U.S. $)
Percentage
October
November
December
1039.48
908.79
1144.38
71.20
58.62
82.520
6.85%
6.45%
7.21%
Table-4.6: National Inward Foreign Remittance of Janata Bank Limited (Last 3 months of
2011)
1200
1144.38
1039.48
908.79
Million U.S. $
1000
800
600
400
82.52
58.62
71.2
200
National earning
October
1039.48
November
908.79
December
1144.38
71.2
58.62
82.52
Months
Graph 4.11- : National Inward Foreign Remittance of Janata Bank Limited (Last 3 months of 2011)
64
Million U.S. $
7.21%
7.40%
7.20%
7.00%
6.80%
6.60%
6.40%
6.20%
6.00%
Percentage
6.85%
6.45%
October
6.85%
November
6.45%
December
7.21%
Months
Graph 4.12 : National Inward Foreign Remittance of Janata Bank Limited (Last 3 months of 2011)
The Graph 4.11 & Graph 4.12 show the comparison between inward foreign remittance
through Janata bank Ltd. and inward national foreign remittance of last three months
[October, November, and December] in 2011.
After analyzing the above charts and tables, we find that the achievement of JBL in
attracting foreign remittance is increased month by month in 2011. And on the
contrary, the percentage of foreign remittance through JBL is also increased month by
month as compared to countrys foreign remittance.
By reducing lead-time, has ensured quick delivery of foreign remittance, an NBR branch has
been opened to serve exclusively Non-resident Bangladeshis through Speedy Money
Remittance System with instant to the beneficiaries. Anybody willing to remit foreign
currency from any corner of the world can use wide network of the bank. The remittance
reaches to the beneficiary within 3 days without charging any commission. Our worldwide
network includes 4 branches in UAE, 2 exchange houses in Italy and correspondent
relationship with all the major Banks and all important trade centers of the world.
Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System
which enables beneficiaries to receive their money within shortest possible time. The
beneficiary also gets information of remittance through automated S.M.Sgt.s a secured, easy,
cost effective and speedy way of remittance for the remitter. Janata bank Ltd. has signed an
agreement with Western Union Network to facilitate wide range of remittance of the globe.
Both the organizations make it possible to receive the money from about 300,000 locations of
200 countries instantly with prevailing mutual mechanism and workforce.
The Foreign Remittance department of Janata Bank Ltd. is equipped with a number of
foreign remittance facilities.
65
Following are the types of foreign remittance facilities offered by Janata Bank Ltd. 1.
2.
3.
4.
5.
Following are the types of inward foreign remittance facilities offered by Janata Bank
Ltd.; Rajanigandha Super Market Branch Dhaka
66
Officer
Figure4.8: This is the simple of FDD.
When this type of FDD is collected by the Janata Bank Ltd. Rajanigandha Super Market
Branch, Dhaka then banker will verify the genuineness of the Advice by way of verifying the
number and signature. If the copy of FDD is verified successfully then the money is
transferred to the customers Accounts.
Taka
F.D.D. Payable
1000000
0
F.D.D. Payable
2009
728779
2010
601894
Years
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
Graph 4.13- - Total F.D.D. payable at JBL in 2009 and 2010
The Graph 4.13 shows that, total F.D.D. payable through Janata Bank Ltd. up to
December 2010 is Tk.601894 which is lower than F.D.D. Payable is Tk. 728779 in 2009.
67
68
69
Beneficiarys name is S.M. Razib and the amount of taka is Tk. 100,000/- and Money
Transfer Control Number (MTCN) is 120152000002.
When the H/O receives this E-mail massage from Dubai Branch then H/O verifies this report
and sends this report to the beneficiary branch (Rajanigandha Super Market Branch) of Janata
Bank Ltd.
Rajanigandha Super Market Branchs officer receives the massage with a MTCN. The officer
will print the massage and wait for beneficiary.
When the beneficiary comes to the bank then he/she will ask to the officer he has an SRC- to
Instant/Spot cash.
Then the officer of RGSM Branch will provide a form to fill-up. In this form the beneficiary
will provide following informationa. Name of Issuer or customer.
b. Name of Beneficiary.
c. Name of Branch. (Where beneficiary collect money)
d. Amount of Currency (Taka).
e. MTCN Money Transfer Control Number.
f. Address of Beneficiary.
g. Photocopy of National I.D. card or Passport.
Then the officer of RGSM branch will verify this information with H/O massage. If all the
information is correct, the officer will give cash memo and the beneficiary will collect money
from the cash counter.
In this case following voucher will be passed by responding branch
Debit : CIBT A/C
Credit : Sundry Deposit (S/D) A/C , Sundry creditors
Debit : Sundry Deposit (S/D) A/C , Sundry creditors
Credit: Suspense A/C , Instant Cash.
70
Example:
Suppose Mr. S.M. Razib lives in Dubai. He wants to send money to his father by Janata Bank
Dubai Branch. But the problem is that his father has no Account in Janata Bank Ltd. But his
father has an Account in ABC Bank Ltd.
In this case the JBL Dubai Branch receives the money and sends SRC- TTR/ Payment
Order (P.O.) massage to Janata Bank Ltd. Head Office (H/O), 110 Motijheel C/A Dhaka1000 to provide money on account of Mrs. Habib & Sons A/C No.- 2000010-1 at ABC
Bank Ltd. Rajanigandha Super Market Branch.
When the H/O receives this E-mail massage from Dubai Branch then H/O verifies this
massage and the H/O may send this massage to the nearest branch of ABC Banks Ltd.
Rajanigandha Super Market Branch. Suppose the nearest branch of ABC Bank Ltd is Janata
Bank Ltd. Rajanigandha Super Market Branch.
When the H/O of JBL sends the SRC massage to the Janata Bank Ltd. Rajanigandha Super
Market Branch then the officer of RGSM Branch will receive the massage and issue a
Payment Order against the ABC Bank Ltd. Rajanigandha Super Market Branch with the
beneficiarys Account Name and A/C number.
Then Janata Bank Ltd. Rajanigandha Super Market Branch will send the Payment Order
(P.O.) to the ABC Bank Ltd. Rajanigandha Super Market Branch and ABC RGSM Branch
will collect money via Clearing House and then transfer the money to the beneficiary
Account.
In this case following voucher will be passed by Janata Bank Ltd. Rajanigandha Super
Market BranchDebit : CIBTA
Credit: Bills Payable A/C, Payment Order (P.O.) issue.
71
This is like as SRC- to Instant/Spot cash but in this case Head office of Janata Bank Ltd.
does not provide any massage to the branches. The responding company provides a software
and pass-ward which is operated by the officers of the branches via internet. In every
transection Janata Bank Ltd. find some commission from the above company.
Western Union is one of the most popular money transfer network in the world. About 40%
transection of foreign remittance is done by Western Union.
So for better understand of this process here I explain about Western UnionRestrictions and Special Notes
Sending from Bangladesh:
Send remittances are not allowed from Bangladesh.
Receiving in Bangladesh:
Receivers must present a valid acceptable form of ID to collect all remittances.
Receiver must present correct Money Transfer Control Number (MTCN).
General Information:
All locations are closed on Friday.
Money Transfer payments are reserved for private consumer use only and cannot be
paid for commercial or business purposes.
How to Pick Up a Money Transfer
It is easy to receive money in person, just go to any of worldwide Agent locations .One can
find an Agent location in a variety of places, like Janata Bank Ltd. Rajanigandha Super
Market Branch, other banks, travel agencies, post offices, airports, and currency exchange
offices etc.
STEP 1: Visit an Agent location
Provide the Agent with the following information:
The Money Transfer Control Number (MTCN) from Sender's receipt is required.
Sender's first and last names.
City and country the money was sent from.
The amount that was sent.
Beneficiarys first and last names, address, and telephone number.
STEP 2: Identify
Simply give the Agent beneficiarys identification card (Like National I.D. Card or Passport)
STEP 3: Sign the Receipt
Review and sign the receipt that the Agent gives.
STEP 4: Receive the Money
If all the information is correct the Agent will give cash memo and the beneficiary will
collect money from the cash counter.
72
By this way one customer can collect foreign remittance from any agents of Western Union.
Other companies also transfer money by the same way with the help of their agents via
internet within a short time.
No. of Transaction
Amount (Tk.)
2008
1961
996,650
2009
2096
10,25,250
2010
2490
11,56,960
2011
2691
13,18,510
Taka
2008
2009
2010
2011
1961
2096
2490
2691
996650
1025250
1156960
1318510
Year
Graph 4.14: JBL Rajanigandha Super Market Branch Dhaka in Inward Foreign Remittance earning
from 2008 to 2011
The Graph-4.14 shows that, Inward foreign remittance through Janata Bank Ltd.
RGSM Branch up to December 2011 is Tk.1318510 which is lower then inward foreign
remittance is Tk. 1156960 in 2010. Foreign remittances from JBL RGSM Branch
reached record high of Tk. 10252520 in 2009 against Tk.996650 in 2008 and continue to
play an important supporting role in strengthening the economy of the county Janata
Bank ltd.
73
From Other
company
(JBL as an Agent)
SRC- Account
SRC- to Instant/Spot cash.
SRC- TTR/ Payment Order
(P.O.)
Percentage
(%)
18%
23%
03%
237,332
303,257
39,555
40%
07%
05%
1.5%
2.5%
100%
527,404
92,296
65,926
19,778
32,962
13,18,510
Taka
Table-4.8: JBL Rajanigandha Super Market Branch Dhaka in Inward Foreign Remittance
earning in 2011
Taka
303257
39555
527404
92296
Placid
Express
Spot
Cash
NBL pay
out
Xpress
money
etc.
65926
19778
32962
Graph 4.15: JBL Rajanigandha Super Market Branch Dhaka in Inward Local Remittance
earning in 2011.
The Table-4.8 & Graph 4.15 show that , The inward foreign remittances come to RGSM
Branch of JBL from Western Union Network that is 40% and from the system of SRC
(to instant spot cash) is in the second position in this regard which is 23%. Then the
others come chronologically.
74
75
Chapter-05
76
Strengths:
Janata Bank is a modern public Bank. It has more capacity to adopt new technology when the
environment will be changed. This JBL Rajanigondha Super Market Branch, Dhaka as well
as Janata Bank Ltd. has various types of strength elements. Such kind of strength are
representing below:
Second Largest bank of the country.
Wide network of 861 Branches across the countries.
Holds a sound reputation in the banking industries.
Sponsoring by the government.
Personalized services.
Sending money through Janata Bank Ltd is an easy and inexpensive process
Well connected distribution channel from Head Office to all branches.
Healthy correspondent relationships with foreign banks.
Provide a record business in international trade and remittance.
Majority of the branches run with computers under centralized network.
Ahsanullah University of Science & Technology
77
Weakness:
A weakness is a limitation or deficiency in resources, Skills and capabilities that seriously
impedes effective performance.
When I study in JBL Rajanigondha Super Market Branch, Dhaka some problem surface to
me those internal problems mention in the below:
Discouraging small entrepreneurs
JBL provides clean Import Loan to most of its solvent clients. But they usually do not
want to finance small entrepreneurs whose financial standing is not clean to them.
Absence of strong marketing activities
JBL currently don't have any strong marketing activities through mass media e.g.
Television. TV ads play vital role in awareness building. JBL has no such TV ad
campaign. Although they do a lot of CSR activities compared to other banks.
Not enough innovative products
In order to be more competitive in the market, JBL should come up with more new
attractive and innovative products. This is one of the weaknesses that JBL is currently
passing through but plans to get rid of by 2010.
Lack of Proper Motivation
The salary at JBL is very decent, but it lacks other sorts of motivation. Incentives such
as bonuses are given for acquiring a particular figure, but all in all these are the only
motivational factors.
Outdated Software and Hardware at JBL Rajanigondha Super Market Branch.
Some of the PCs in this branch have very outdated hardware which is very slow and
affects the customers and hence the performance of the bank as a whole. The software
themselves are pretty old Flexcube is from 2003, Microsoft Office XP is used. All
of these prevent smooth operations.
78
Opportunity:
In my study on JBL Rajanigondha Super Market Branch, Dhaka some opportunity surface to
me. Those opportunities of Janata Bank are given below:
Distinct operating procedures
Repayment capacity as assessed by JBL of individual client helps to decide how much one
can borrow. As the whole lending process is based on a client's repayment capacity, the
recovery rate of JBL is close to 100%. This provides JBL financial stability & gears up JBL
to be remaining in the business for the long run.
Country wide network
The ultimate goal of JBL is to expand its operations to whole Bangladesh. Nurturing this type
of vision & mission & to act as required, will not only increase JBL's profitability but also
will secure its existence in the log run.
Experienced Managers
One of the key opportunities for JBL is its efficient managers. JBL has employed experienced
managers to facilitate its operation. These managers have already triggered the business for
JBL as being new in the market.
Huge Population
Bangladesh is a developing country to satisfy the needs of the huge population, a large
amount of investment is required. On the other hand, building EPZ areas and some Govt.
policies easing foreign investment in our country made it attractive to the foreigners to invest
in our country. So, JBL has a large opportunity here.
BASEL II
Implementation of BASEL II would definitely provide benefits. But it requires a lot of
monitoring. For this JBL has formed BIU (BASELL II Implementation Unit). BASEL II is
basically a framework set forth by Bangladesh Bank to reduce credit risk, operational risk
and market risk. This would definitely aid JBL if it is stringently followed
Threats:
From the above discuss we can say that Janata Bank Limited is one of the largest privatized
Bank of the country. Overall Performance of Janata Bank Limited is satisfactory. But to face
challenges of Globalization, Janata Bank Ltd. should to restructure its operation to improve
as a first generation bank.
79
5.2 Findings
During my practical study at JBL, Rajanigondha Super Market Branch, Dhaka I have got
some problems that hamper in making element to the banks operations and the way of profit
making of the branch as well.
I however took the help of following techniques to do this
Personal observation and
Interview
Thus the following problems are identified1) Process of money transfer:
Sending money through Janata Bank Ltd. is a complex process.
2) Lack of E-Banking facilities:
Most of the Branches of Janata Bank Ltd. has very outdated internet modem which is
very slow. The maximum speed of these modems is 3Kb/s and sometime connection
or network is disconnected. All of these prevent smooth operations of E-Banking as
well as remittance activities.
3) Absence of modern technologies:
Less involvement of technology and lot of entries of a single transaction in various
register books make tasks time-consuming. Some of the PCs in this branch have very
outdated hardware which is very slow and affects the customers and hence the
performance of the bank as a whole. The software themselves are pretty old Flex
cube is from 2003, Microsoft Office XP is used. All of these prevent smooth
operations.
4) Lack of knowledge of employees and staffs about modern technology:
Most of the employees in Janata Bank Ltd. Rajanigondha Super Market Branch,
Dhaka has not enough knowledge about modern technology such as- process of
check and print SRC report from head office, Western Union Network activities etc.
5) Lack of integrity and shortage:
Lack of integrity and shortage of employees are the main concerns in achieving the
target profit from Remittance.
6) Lack of Concentrating on the channeling of remittances:
However, Janata Bank Ltd. plays a great role in sending money to various rural areas
through its countrywide network but concentration on the channeling of remittances
activities is not enough.
7) Position in International Banking: A strong position in international Banking and a
great link with various foreign exchange companies makes the process of collecting
the foreign remittance easier to this bank.
8) Contribution of JBL in Foreign Remittance earning:
The achievement of JBL in attracting foreign remittance is increased year by year
except 2009 and 2010 due to economic crises. But on the contrary, the percentage of
80
5.3 Recommendations
To make solve the abovementioned problems the following recommendations can be
made so that the problems can be solved
1. Process of money transfer:
Remittance collection from the Bank should be a much easier and hassle free job for
the beneficiaries. Process flow should be smoother so that the waiting time for them is
decreased.
2. E-Banking facilities:
Janata Bank Ltd. should be used high speed internet modem for smooth operations of
E-Banking as well as remittance activities.
3. Adaptation of new technologies:
4. All of the PCs in this branch should be changed with update hardware and software
which is very fast.
5. Training to the employees:
6. A very strong and systematic training program creates the bankers efficient; the
disciplined environment makes them active.
7. Removing integrity and shortage:
The Gap between Head office and branches will have to be removed in order to
improve the situation. Reinforcement should be involved with the given target.
81
82
Conclusion
In modern Banking, Remittance of Funds is one of the most important ancillary services
performed by every type of Banks. A nationalized commercial bank like Janata Bank Ltd can
perform it with better than other banks because of a wider network of branches and lower
service charge. Again, a strong position in international Banking and a great link with various
foreign exchange companies makes the process of collecting the foreign remittance easier to
this bank. Besides these advantages, a lot of lacking like- shortage of manpower, Gap
between officers of Head office & Branches, etc becomes a matter of concern. Remittancethe subject of my study is a very small part of Janata Bank Ltd.s. Activity, but it generates a
portion of profit. So, by removing or at least reducing the bank should try to achieve the
targeted amount fixed by the top management.
83
Reference
84
Appendix 1
85
Appendix 2
Five years Comparative Financial and Operational performance
Particulars
2006
2007
2008
2009
2010
Authorized Capital
8000
8000
8000
20000
20000
Paid up Capital
2595
2595
2595
5000
5000
Reserve Fund
1727
3224
4183
8207
10224
Deposits
182947
198636
221336
246175
286567
Advance
138493
121200
144678
166359
225732
Investment
24785
55862
57824
72533
57514
Revenue
16272
18522
20922
24074
30614
Cost
12059
13559
13919
15496
18577
Operating Profit
4213
4963
7003
8578
12037
Provisions for
Loan/Assets
10707
11698
9051
8748
8975
Net Profit
---
1681
3145
2982
4907
Export
70897
71855
85418
88653
118515
Import
128809
84065
129413
118525
183744
Total Number of
Employees
14772
13860
13379
13122
12826
No.of foreign
Correspondent
1198
1198
1202
1208
1215
No. of Branches
848
848
849
851
872
(including 4 Overseas
Br.)
86
Appendix 3
Balance Sheet As At 31 December, 2010
87
Appendix 4
Profit And Loss Account
For the year ended 31December, 2010
88
89