Internship Report

on
General Banking Activities of Janata Bank Limited
A Study on Aminbazar Branch, Dhaka

Supervised by:

Prepared by:

Date of Submission: 23March, 2017

 2017

General Banking
Activities of
Janata Bank
Limited
A Study on Aminbazar Branch, Dhaka

1
 Letter of Transmittal

23rdMarch, 2017
Syeda Tasmia Tasneem
Lecturer, Department of Management Studies
Jagannath University, Dhaka

Subject: Submission of internship report on General Banking Activities ofJanata Bank

Limited: A Study on AminbazarBranch, Dhaka.

Madam,

With due respect that, I have much honor to submit my internship report on “General Banking
Activities of Janata Bank Limited: A Study on Aminbazar Branch, Dhaka”. I am submitting
this report as part of my internship program at Janata Bank Limited. This report has been giving
me the practical implementation of theoretical knowledge and experience of working
environment in the corporate world. I had tried my best to collect information on this report.

Finally, I would like to thank you for your valuable guidance and supportive in preparing this
report. I would be grateful for any clarification when required. I will be highly obliged if you are
kind enough to approve this report and provide your valuable judgment on it.

Sincerely

Md. Nafiz Hassan

ID: B-110202036
8th Batch
Session: 2012-2013
Department of Management Studies
Jagannath University, Dhaka.

2
 Letter of Declaration

I do hereby solemnly declare that the report entitled “General Banking Activities of Janata
Bank Limited: A Study on Aminbazar, Dhaka Branch”, embodies the results of my own
effort after completion of 45 days’ work at Janata Bank Limited., perused under the supervisor of
Syeda Tasmia Tasneem, Lecturer, Department of Management Studies, Jagannath University,
Dhaka.

I also confirm that, this report is only prepared for my academic requirement not for any other
purpose. It has not been previously submitted to any other university/college/organization for an
academic qualification/certificate/diploma or degree.

__________________

Md. Nafiz Hassan

ID: B-110202036
8th Batch
Session: 2012-2013
Department of Management Studies
Jagannath University, Dhaka.

3
 Certificate of Supervisor’s Forwarding

This is to certify that Md. Nafiz Hassan is a student of BBA program, ID No: B-110202036, has
successfully completed his “Internship Program” entitled “General Banking Activities of
Janata Bank Limited: A Study on Aminbazar Branch, Dhaka” under my supervision as a
partial fulfillment of the award of BBA degree.

He has done his job according to my supervision and guidance. He has tried his best to do
thissuccessfully. I think this program will help him in the future to build up his finer career.

I wish his success and prosperity.

Syeda Tasmia Tasneem

Lecturer, Department of Management Studies
Jagannath University, Dhaka

4
 Acknowledgement

At first I would like to express my gratitude to Almighty Allah who has given me opportunity to
go through the total process of internship and to write a report in this regard.

I would like to take the opportunity to express my gratitude to my Internship Advisor,

Syeda Tasmia Tasneem,Lecturer, Department of Management Studies, Jagannath University,
Dhaka whose direction, guidance and support helped me a lot in writing this report.

It was a great pleasure for me to work in Janata Bank Limited (Aminbazar Branch) as an intern. I
thank all the employees for being friendly and cooperative. I was taught lots of important things
through-out my internship career because of their proper attention and co-operation.

My deepest appreciation and special thanks goes to Mr. Md. Mozzamel Haque, the manager of
Aminbazar Branch,Md. Monir Sarker, Senior Office, Computer System and Farah Sabrina,
Senior Officer, Accountsof Janata Bank Limited, Aminbazer Branch, for extending their support
in compiling this report. I would specially like to thank Md. Saifulul Islam, Office Teller, Cash
in charge, Md. Hadibur Rahman, Senior Office, Foreign Remittance and Clearing and Md.
Ashraful Islam, Officer, Loan and Advance Departmentas they helped me a lot during my
internship days with valuable advices, guidance and necessary information.

At last I must mention the wonderful working environment and group commitment of this bank
that has enabled me a lot deal to do and observe the banking activities during my internship
period of three months. Finally I convey my sincere thanks to my friends who inspire in different
ways to complete the report and the course as well.

__________________
Md. Nafiz Hassan
ID: B-110202036
8th Batch, Session: 2012-2013
Department of Management Studies, Jagannath University, Dhaka.

5
 Executive Summary

Modern Banking presents an extensive variety of economic services – particularly credit, funds,
and payment services and carries out the widest array of economic tasks of any business firm in
the financial system which is a result improvement. Earning a good image of honesty to pact
with money of the shareholders, is the vital characteristic of banking process.

Internship program assists to attain realistic understanding along with scholastic understanding.
Study is not complete without realistic details and it helps to recognize genuine situation of
study. I have obtained knowledge on General Banking procedures by getting chance as an intern
in Janata Bank Limited, Aminbazar Branch, Dhaka.

I have worked there for 45 days as a prerequisite of internship part of BBA program under the
Department of Management Studies Jagannath University, Dhaka. I have chosen the subject
“General Banking Activities of Janata Bank Limited.” One of the first generation commercial
banks in Bangladesh is of Janata Bank Limited which provides expert banking services and
contributes to the social and economic development of the country.

The first chapter of this report consist of origin, Objectives, scope, limitations and methodology
of the report. A brief organizational overview is given in the second chapter. Janata Bank
Limited (JBL), as the second largest public commercial bank among the others public bank in
Bangladesh, has set up a new standard in financing in the Industrial, Trade, Agriculture and
Foreign exchange business. Its various deposit & credit products have also attracted the clients-
both corporate and individuals who feel comfort in doing business with the Bank. Realizing the
growing significance of marketing in banking sector to exist successfully in today’s competitive
banking industry, JBL practices its marketing strategies seriously and adopt proper elements of
marketing mix. It targets the customer segments analyzing their financial need and offer highly
customized products and services to the target customers. JBL offer a reach portfolio of bank
products including deposit products, loan and advance products, remittance products, cards,
international business products, and other services. JBL sets competitive rates of interest and
commission for various bank products which in most of the cases are almost same to the

6
competitors. It also attempts to reach its services to the door level of customer by increasing its
number of branches and ATM booths, and extending mobile and online banking services. It also
performs moderate level of promotional activities. It tries to maintain strong customer
relationship and acquire more customer base by proving quality services understanding financial
needs of customers and offering services accordingly.General Banking is the main point of
discussion in this report. So I discussed its diagnosis and necessity. General banking operation
includes general account’s opening, requirements of opening accounts, schemes, rate of interest
on different deposit scheme, cheque clearing and bills department sections, collection section,
local remittance department and customer services. The commitment of the bank and the people's
belief in JBL have given the edge over others to earn this trust about the safe keeping of their
money in the right kind of banking channel. All these are discussed in Chapter 3 named:
“General Banking Activities of Janata Bank Limited”

In chapter 4, analytical section is given which provides both positive and negative findings on
General Banking operation. The way to improve in several section and operation is outfitted in
the Suggestion and Conclusion chapter.

7
 TABLE OF CONTENT

Serial Particulars Page no

no.
Title Page 1
Letter of Transmittal 2
Letter of Declaration 3
Certificate of Supervisor 4
Bankers Certificate 5
Acknowledgement 6
Executive Summary 7
Chapter: 1 Introduction 10
1.1 Introduction of The Report 11
1.2 Origin of The Report 12
1.3 Objectives of the Study 12
1.4 Scope of the Study 12

1.5 Limitations of the Study 13

1.6 Methodology of The Report 13

Primary Data sources 14
Secondary Data sources 14

Chapter: 2 Overview of Janata Bank Limited 15

2.1 History 16
2.2 Profile Janata Bank Limited 17
2.3 Corporate Vision, Mission and Core Values 19
2.4 Code of Conduct 20
2.5 Ethical Principles 20
2.7 Objectives of Janata bank Regulations 22
2.8 Janata Bank Limited: Corporate Governance 23
2.9 Product and services 24

8
Serial Particulars Page
no. no
Chapter: 3 General Banking Activities of Janata 28
Bank Limited
3 General banking 29
3.1 Accounts Opening 29
3.2 Deposit Criteria 34
3.2.1 Current Deposit 35
3.2.2 Savings Deposit 36
3.2.3 Special Notice Deposit 38
3.2.4 Fixed Deposit 39
3.2.5 Scheme Deposit 40
3.3 Bank Remittance 42
3.3.1 Foreign Remittance 42
3.3.2 Facilities Offered to the Remitters 42
3.3.3 Types of Accounts and US Bonds for Foreign Remitters 43
3.3.4 Inland Remittance 44
3.4 Loan and Advances Department 48
3.4.1 Types of loan 48
3.4.2 Terms and Conditions of Loan Disbursement 50
3.4.3 Loan Disbursement and Recovery System of JBL 50
3.4.4 Loan Recovery Procedures 52
3.5 Accounts 53
3.5.1 Cash 56
3.5.2 Transfer 57
3.5.3 Clearing 58
Utility Services 59
Chapter: 4 Analysis and Findings 60
4.1 Analysis of general banking operations and Findings 61
Chapter: 5 Suggestion and Conclusion 65
5.1 Suggestion 66
5.2 Conclusion 67
References 68

9
Chapter: 1

Introduction

10
1.1 Introduction of The Report
As a student of Bachelor of Business Administration (BBA), everyone has to conduct a practical
orientation in any organization for fulfilling the requirements of the Internship Program. The
main purpose of the program is to expose the students to the real world situation .This report is
done as a partial requirement of the internship program for the BBA students. This report is
prepared for the internship program consisting of a major in depth study of the total banking
business of Janata Bank Limited. Practical knowledge is fundamental for the application of
theoretical intelligence. Bearing this in mind and internship program was being included in the
BBA curriculum. The goal of this analysis is to expose the student in the organizational work
situation and also to provide an opportunity for applying classroom learning in practice. There
are some difference between theories and practice.

Internship is a part of the Bachelor of Business Administration (BBA) program that provides an
on-the-job experience to students. I was placed at Janata Bank Limited, Aminbazar Branch as an
intern for 45 days. This internship program was my very first on-the job exposure and provided
me with leaning experience and knowledge in several areas. During the first few weeks of my
internship period, I was able to get accustomed to the working environment of Janata Bank
Limited. As the internship continued, I have not only learned about the activities and operations
of correspondent Bank, but I have also gathered some knowledge about the basic business
activities of banking in my internship period.

Generally by the word "Bank" we can easily understand that the financial institution deals with
money. But there are different types of banks such as; Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks etc. But when we use
the term "Bank" without any prefix, or qualification, it refers to the 'Commercial banks'.
Commercial banks are the primary contributors to the economy of a country. So we can say
Commercial banks are a profit-making institution that holds the deposits of individuals
&business in checking & savings accounts and then uses these funds to make loans. Both general
public and the government are dependent on the services of banks as the financial intermediary.

As, banks are profit-earning concern; they collect deposit at the lowest possible cost and provide
loans and advances at higher cost. The differences between two are the profit for the bank.A
company can increase efficiency through a number of steps. These include

11
exploitingeconomiesof scale and learning effects, adopting flexible manufacturing technologies,
reducing customer defection rates, getting R&D function to design products that are easy to
manufacture, upgrading the skills of employees through training, introducing self-managing
teams, linking pay to performance building a companywide commitment to efficiency through
strong leadership, and designing structures that facilitate cooperation among different functions
in pursuit of efficiency goals.

1.2 Origin of The Report

This report is done as partial requirement of the 45 days internship program for the BBA students
of Jagannath University, Dhaka. During my internship period I joined Janata Bank Ltd. at
Aminbazar Branch. The chairperson of the Internship and Placement Committee advised to
prepare reports on our assigned jobs after the completion of the Internship in the respective
organizations. The title of the report is “General Banking Activities of Janata Bank Limited”.

1.3 Objectives of the Study

The objectives of the study are as follows:

1. To reveal the general banking activities of Janata Bank Limited.

2. To find out the problems relating to the general banking activities of Janata Bank
Limited.

3. To recommend some suggestions based on findings.

1.4 Scope of the Study

This report is based on my practical work experience with Janata Bank Limited. It will also help
the students to reduce the distinction between realistic and hypothetical knowledge. This report
significantly helped me a lot to understand the atmosphere and environment of an organization.

As I am an internee of Janata Bank Limited, I have access to many different sectors like account
opening, clearing, cheque division, pay order writing, accounts etc. It was almost impossible for
me to learn everything about all banking sectors as it was a large financial sector with limited
time.

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1.5 Limitations of the Study

Current study of this report was limited. But as I was an internee, it was a big chance for me to
know the actions and behaviors of banking system, especially Janata Bank Limited. I had to face
some obstacles while doing this report. Some of them are given below:

1. Lack of Time: As there was only 45 days to complete the report, it was almost
impossible to cover the performance of the bank fully, where a regular employee gets
awarded after 1 or 2 year of his probationary period.

2. Limited data resources: All types of information were not available for access, so it was
not possible to access and summarize them properly. Though I had assistance from other
employees but it was not enough for me due to their high work pressure in the bank.
Some assumptions were made due to limited information, so there may be some personal
mistakes.

3. Lack of experience: It was my first time, doing a report on a banking system in a

practical corporate life. So my limited experience was the main obstacle of this study.

4. Privacy of Information: Every establishment has its secrecy that is not shared with
everyone. So this confidentiality of information was also an obstacle faced in this study.

1.6 Methodology of The Report

The study requires various types of information of present policies, procedures and methods of
General Banking Operation. Both primary and secondary data available have been used in
preparing this report.

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1.6.1 Primary Data sources:
 Practical banking work.

 Personal discussion with the officers and executives of Janata Bank Limited.

 Personal interview with the customers.

1.6.2 Secondary Data sources:

 Daily diary (containing my activities of practical orientation in Janata Bank Ltd),

 Various publications on banking operation,

 Website of Bangladesh Bank,

 Website of Janata Bank Limited,

 Annual Report of the Janata Bank Ltd,

 Personal investigation with bankers,

 Different circulars issued by Head Office and Bangladesh Bank.

14
 Chapter: 2

Overview of Janata Bank Limited

15
2.1 History

2.1.1 Background

With the emergence of Bangladesh as an independent, sovereign state in 1971 after a devastating
nine month war against the West Pakistani occupation army, a war, full of blood and tears,
trauma and pain of millions of our beloved ones, the legacy of rebuilding the already broken
financial base of the country was felt as an urgent call of the day against a collapsed economic
reality of a newly born state.

2.1.2 Inception

In this backdrop, in order to rebuild the country’s economy, measures had been taken to merge a
number of banks previously operated in this region and make new banks and this initiatives led
to formation of Janata Bank in 1972 by combining the erstwhile United Bank Limited and Union
Bank Limited under the Banks Nationalization Order (President’s Order No. 26) of 1972.

2.1.3 Corporatization

In 15 November, 2007 Janata Bank got registered with the Joint Stock of Registrars and
restructured it as a public limited company with the name Janata Bank Limited.

2.1.4 Roundup

Including 4 overseas branches in United Arab Emirates Janata Bank runs its business with 911
branches across the country having a big family of around 19,140 (As on 31.10.2016) employees
with its head office located at Janata Bhaban at Motijheel C/A, the heart of the capital city,
Dhaka.

At the end of 2015 the Bank held Deposit BDT 568,911.14 million, Advance BDT 349,861.30
million with Authorized capital BDT 30,000 million and Paid-up Capital BDT 19,140 million.

Janata Bank Limited, a corporate body trusted over the years, the 2nd largest (in respect of
Deposits/Assets) commercial bank in Bangladesh, has been playing pivotal role in overall
financial activities of the country and is possessing a long heritage of discharging laudable

16
services to the society since her embankment immediately after the emergence of this verdant
rich alluvial soil as a sovereign, independent state.

The contribution of the Bank to the national economy and social reform has set standard bar so
high that others in this business can’t help aspire touching the benchmark of success earned by
JBL. More so a matter of great honor is that the contribution, commitment and success of the
Bank have been recognized with a number of prestigious awards by national and international
organizations of repute.

2.2 Profile Janata Bank Limited

Features Values

Name Janata Bank Limited

Genesis Janata Bank Limited, the 2nd largest State Owned Commercial
Bank (SCB) in Bangladesh, is playing pivotal role in overall
financial activities of the country. The Bank emerged as ‘Janata
Bank’ by combining the erstwhile United Bank Limited and
Union Bank Limited under the Banks Nationalization Order
(President’s Order- 26) of 1972 and was restructured as a limited
company in November, 2007. Since inception in 1972 the Bank
has commendably contributed to the socio-economic
development of Bangladesh and helped structuring solid
financial ground of the country as well. Janata Bank runs its
business with 910 branches across the country including 4
overseas branches in United Arab Emirates.

Registered Address Janata Bhaban, 110, Motijheel Commercial Area Dhaka - 1000,
Bangladesh.

Legal Status Public Limited Company

17
Chairman Shaikh Md. Wahid-uz-Zaman

Managing Director & Md. Abdus Salam

CEO

Company Secretary Md. Mosaddake-Ul-Alam

Date of Incorporation 21 May 2007

Authorized Capital BDT 30,000 Million

Paid up Capital BDT 19,140 Million

Face value per share BDT 100 per share

Shareholding Pattern 100% Share owned by the Government of Bangladesh

Number of Employees 13,498(As on 31.10.2016)

Banking license obtained 31 May 2007

from Bangladesh Bank

Phone +88 02-9560000, 9566020, 9556245-49, 9565041-45, 9560027-

30

Fax 88-02-9554460, 9553329, 9552078

SWIFT JANBBDDH

Website http://jb.com.bd

E-mail md@janatabank-bd.com

Total No. of Account 26,14,736

18
2.3 Corporate Vision, Mission and Core Values

2.3.1 Vision

To become the effective largest commercial bank in Bangladesh to support socio-economic

development of the country and to be a leading bank in South Asia.

2.3.2 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 ensuring good corporate governance in every step of
banking network.

2.3.3 Core Values

Professionalism

Integrity Growth

Core
Values
Accountability Diversity

Dignity

Figure: (Source): Core Values of JBL (JBL Annual Report-2015, Page: 11)

19
2.4 Code of Conduct
In accordance with the ethical principles, the code of conduct of JBL employees shall:

a) Act with integrity, competence and dignity;

b) Loyal to the bank and bank’s interest;

c) Maintain professionalism and ethical standards;

d) Deliver professional service in accordance with JBL policies and relevant standards;

e) Try to fulfill the customer needs in the best possible manner within the guideline of
corporate ethics;

f) Keep all matters confidentially;

g) Maintain knowledge of and comply with all applicable laws, rules and regulations;

h) Never offered or accept illegal gifts or other facilities in order to achieve personal
advantage;

i) No discrimination against any person on the basis of race, religion, color, gender, age,
etc.

j) Not engaged in any unprofessional conduct involving dishonesty, fraud,

misrepresentation or commit any act that reflects adversely on honesty,
trustworthiness and professional competence.

2.5 Ethical Principles

Bank deals with public money where ethical compliance is very important. Janata Bank
maintains its reputation as a law-abiding organization and a good corporate body. Employees are
properly guided to conduct business in compliant manner. The policy and procedures regarding
Janata Bank’s business process are prepared in adherence to the laws and regulations. JBL
follows and maintain ethical principles in every sphere of its banking operation and customer
services. The main features of employee’s code of ethics and business conducts are as follows:

20
 a. Implement justice and fairness;

b. Ensure optimal customer services;

c. Maintain privacy and secrecy of customer’s information; but at the same time it
complies with ‘The Right to information Act-2009’;

d. Prevent money laundering and corruption;

e. Protects and upholds corporate values;

f. Maintain accuracy and transparency in financial reporting;

g. Protect natural environment.

h. Perform all the activities according to the guidelines and laws approved by the
various regulatory authorities.

2.6 Regulations

Janata Bank’s regulations are a form of government regulations which subject banks to certain
requirements, restrictions and guidelines. This regulatory structure ensures transparency between
banking institutions and the individuals with whom JBL conducts business, among other things.

Immediately after the emergence of Bangladesh in 1971, the Bank emerged as ‘Janata Bank’ by
combining the erstwhile United Bank Limited and Union Bank Limited under the Bangladesh
Banks Nationalization Order (President’s Order-26) of 1972. ‘Janata Bank Limited’ has been
corporatized on 15 November, 2007 as per Clause (1) of Article 27A of The Bangladesh Banks
(Nationalization) Order 1972.

2.7 Objectives of Janata bank Regulations:

a) Prudential—to reduce the level of risks to which bank creditors are exposed (i.e. to
protect depositors)

b) Risk reduction—to reduce the risk of disruption resulting from adverse trading conditions
for banks causing multiple or major bank failures.

21
 c) Avoid misuse of banking practice—to reduce the risk of bank being used for criminal
purposes such as laundering and terrorism financing to protect banking confidentiality.

d) Credit allocation—to channel credit to favored sectors

e) It may also include rules about treating customers fairly and having corporate social
responsibility (CSR).

2.8 Janata Bank Limited: Corporate Governance

Corporate governance includes:

i. Board of Directors

ii. Executive Committee

iii. Audit Committee

iv. Risk Management Committee

v. Top Management

vi. Deputy General Managers

2.8.1Management

The management of the bank is vested on a Board of Directors, subject to overall supervision
and directions on policy matters by the board that is constituted in terms of Bangladesh Bank
(Nationalization) Order 1972. Board of Directors, constituted by 13 (Thirteen) members, has
authority to organize, operate and manage its affairs on commercial consideration within the
Board Policy of government. There are directors appointed by the government. Other members
of the Board including M.D are also government appointed out of that at least three have the
experience in the field of Finance, Banking, Trade, Commerce, Industry and Agriculture. The
managing director is the chief Executive of Bank.

Like every other business organization, the foremost duty of the top management is to makes all
the major decisions of Janata Bank. The boards of directors are being at the topmost level of
organizational structure plays an important role in policy formulation and successful execution,
but it is not a direct concern of the day-day operations of the bank. The duty was delegated to the

22
management committee. The board mainly sets the objectives and policies of the bank. The
management consists of one chairman, eleven directors, one CEO & MD and one company
secretary. Mid and lower level employees get the direction and instruction from the Board of
Directors about the tasks they have to meet. The chief executive provides the guideline to the
managers and employees, but bears the responsibility for determining how tasks and goals are to
be attained.

2.8.2 Board of Directors

Board of Directors, constituted by 13 (Thirteen) members, has authority to organize, operate and
manage its affairs on commercial consideration within the Board Policy of government. The
Directors are representatives from both public and private sectors. Members of the Board
including M.D are government appointed out of that at least three have the experience in the
field of Finance, Banking, Trade, Commerce, Industry and Agriculture. The managing director is
the chief Executive of Bank. The Board of Directors is composed of 13 (Thirteen) members
headed by a Chairman.

2.8.3Janata Bank Limited Branch Network

There are 908 branches of Janata Bank Limited in home and abroad. Among them 480 branches
are situated in urban areas including four foreign branches and 424 branches are in rural areas
and all foreign branches are situated in United Arab Emirates.

Serial No. Category of Branch Number

1. Urban 480
2. Rural 424
3. Overseas 04
Total 908
Table: Janata Bank Limited Branch Network (Source: Janata Bank Limited Annual
Report 2015, Page: 315)

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 Particulars No. of Branches
Local Office 2
Corporate Branch 25
Corporate-Branch 74
Overseas Branch 4
Grade-1 Branch 205
Grade-2 Branch 223
Grade-3 Branch 273
Grade-4 Branch 102
Total Branches 908
Table: Janata Bank Limited Branch Network (Source: Janata Bank Limited Annual
Report 2015, Page: 315)

2.9 Product and services:

2.9.1 Deposit

a) Current Deposit

b) Savings Deposit

c) Special Notice Deposit

d) Fixed Deposit

e) Schemes

2.9.2 Loans & Advance

a) Agriculture Loans

b) Term Loan for Large and Medium Industries

c) Working Capital Loan

d) Import Loans

e) Export Loans

24
 f) Financing in Green Banking

g) Term Loan for Micro and Cottage industries

h) Other Loans

i) CC Hypo/CC Pledge

j) Micro Enterprise and Special Credit

k) Other Programs

2.9.3 Special Products

a) Loan to Travel Agencies

b) Loan to Diagnostic Centers

c) Financing IT Sector

d) Financing of Industries

e) Windows for SMEs

f) Ready Cash

g) NRB Escrow Account

2.9.4 e-Services

a) ATM

b) Q-Cash

c) Internet Banking

d) Automated Branch Banking

e) Green Banking

f) Janata Bank e-Library

25
 g) JBL Data Bank

h) E-GP Payment Service

2.9.5 Modern Banking Services

a) Online Banking

b) JB Green Communication

c) JB Remittance

d) JB PIN Cash

2.9.6 Others

a) Deposit

b) Loans and Advances

c) Remittance

d) Salaries and Allowances

e) Taking Utility Bills

f) Other Services / Activities

2.9.7 Financial Highlight

26
2.9.7 Financial Highlight

Graph: Stakeholders’ Information (JBL Annual Report-2015)

27
 Chapter: 3

General Banking Activities of Janata Bank

Limited

28
3. General banking

General banking provides the foundation of banker customer relationship through opening
account. This is the most busy department and the daily transaction of concerned to the
customers for drawing or depository money, Selling of instruments, collection of their
instruments providing other additional services to them and keep customer section busy. Officers
of this department should possess the required behaviors for optimum satisfaction of the
customers. The Bank provides different type of accounts and special type of savings scheme
under general Banking.

General banking department performs the core functions of bank, operates day-to-day
transactions of banking operation. Every day it receives deposits from customers and meets their
demand for cash. It opens new accounts, remits customer’s money from one place to another
through issuing bank draft, pay order, telegraphic transfer, collects all bill like Local cheque
collection, Inward bill collection and outward bill collection for customers. Since bank is bound
to provide these services every day, general banking is also known as retail banking.

General Banking includes:

i. Account OpeningSection

ii. Deposit Department

iii. Remittance

iv. Credit Department

v. Accounts

3.1Accounts Opening:

If a customer wills to build a legal financial relationship with a bank then the first step will be
opening an account. Opening of an account binds the Banker and customer into contractual
relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed,
fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious
measure in its selection of customers.

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3.1.1Relevant Documents for Opening Current and Saving A/C

Types of attached documents usually vary with the nature of the A/C being opened. Followings
are the list of documents that should be enclosed with the ‘A/C Opening Form’ for opening
account for different kinds of A/C openers:

3.1.2In case of Club/Society

 Up-to-date list of office bearers.

 Certified copy of resolution for opening and operation of A/C.

 Certified copy of by laws and regulations/constitution.

 Copy of government approval (if registered).

3.1.3In case of Co-operative Society

 Copy of bylaws duly certified by the co-operative officer.

 Up-to-date list of office bearers.

 Resolution of the executive committee as regards of the A/C.

3.1.4In case of Non-government College/School/Madrasah/Muktab

 Up-to-date list of the members of the governing body/managing committee

 Copy of resolution of the governing body/managing committee authorizing

opening and operation of the A/C duly certified by gazette officer.

3.1.5In case of Trustee Board

 Prior approval of head office of the bank.

 Certified copy of deed of trust, up-to-date list of members of the trustee board and
certified copy of the resolution of trustee board to open and operate the A/C.

30
3.1.6In case of Minor’s A/C

 Putting the word ‘Minor’ after the title of the A/C.

 Recording special instruction of operation for the A/C.

 The A/C opening form is to be filled in and signed by either of the parents or the
legal guardian appointed by the court of law and not by the minor.

3.1.7In case of Limited Company

 Certified true copy of the memorandum and articles of association of the company

 Certificate of incorporation of the company for inspection and return with a duly
certified photocopy for bank’s records.

 Certificate from registrar of joint stock companies that the company is entitled to
commence business (in case of public limited company for inspection and return)
along with a duly certified photocopy for bank’s records.

 Extract of the resolution passed in the general meeting of the company for
opening of the A/C and authorization for its operation duly certified by the
Chairman/Managing Director of the company

 List of Directors with addresses.

 Authorized signature.

3.1.8General conditions or rules in respect of operating Current/Saving A/C

 A minimum balance of take500 and taka1000 must be maintained in the

Savingand Current A/C respectively.

 A suitable instruction by an introducer acceptable to the branch is required.

 Recent photographs of the A/C openers duly attested by the introducer must be
produced

 Withdrawal of deposit can be made two times in a week in case of saving A/C

31
  For Saving A/C, an application must be submitted to the branch authority if
withdrawal is Taka50, 000 or more but customer rarely follow this rule.

 Interest rate for Saving bank A/C is 5% per year.

3.1.9 Process, requirements and steps of account opening:

 For opening an account, at first the prospective account holder will apply for opening an
account by filling up account opening form. Account opening form consists of the name
of the branch, type of account, name of the applicant(s), present address, permanent
address, passport number (if any), date of birth, nationality, occupation, nominee(s),
special instruction (if any), initial deposit, specimen signature(s) of the applicant(s),
introducer‘s information etc. The prospective customer should be properly introduced by
the followings:

i. An existing customer of the bank.

ii. Officials of the bank not below the rank of Assistant Officer.

iii. A respectable person of the locality who is well known to the Manager or
authorized officer.

 Two copies of passport size photograph duly attested by the introducer.

 Signature of the prospective account holder in the account opening form and on the
specimen signature card duly attested by the introducer.

 Two copies of passport size photograph, photocopy of NID of nominee(s).

 Then the concerned authority will allocate a number for the new account.

 The customer than deposit the ―initial deposit‖ by filling up a deposit slips. Initial
deposit to open a current account in JB is Tk. 10000.00 and saving account is Tk.
1000.00.

 After doing the above formalities, the branch provides the customer pay-in-slip and a
chequebook. The cheque-book may be off 10 pages, 20 pages, 50 pages or 100 pages
depending on the type of account the customer has opened. A customer has to fill up the
Requisition Slip ‘for chequebook. Then a new cheque-book will be filled with the
32
 account number of the customer and name of the branch in each page of the cheque-book.
Then name and account number of the customer are registered in the cheque-book Issue
Register‘. After depositing the initial deposit, the account is considered to be opened. The
requisition slips are maintained and recorded as vouchers. The serial number of the
cheque-book is also entered in the computer for maintenance of records and to prevent
any attempt of forgery.

3.1.10 Transfer of Account to another Branch

The account holder requests to transfer his accounts by giving the following instructions-

 Reasons for transfer the account.

 Address of the branch at which customer wants to transfer the account.

 The unutilized cheque book will be returned to the transferring branch before transfer of
account

After verification, the approval of the manager for transferring the account is obtained and then
the specimen of the forwarding letter of transferee branch will be sent. After the application is
received duly approved from the manager, the branch transfer the account based on the following
entries-

Customer’s Account- Dr
Transferee Branch Cr
Account-
Service charge Cr
(income) -

3.1.11 Closing of an Account

The following circumstances are usually considered in case of closing an account or justifying
the stoppage of the operation of an account-

 Notice given by the customer himself or if the customer is desirous to close the account.

 Death of the customer.

33
  Customer’s insanity and insolvency.

 If the branch finds that the account is inoperative for a long period.

 If Garnishee Order is issued by the Court of Law on the bank branch.

 Before the account is closed the manager will approve the application and closing charge
being incidental charge which should be debited to the account. To close the account, the
cheque book is to be returned to the branch. Accounting entries will be-

Customer’s Account Dr
Account Closing Charge Cr
(income)

3.2 Deposit Criteria

Current
Deposit

Scheme Savings
Deposit Deposit
Deposit
Special
Fixed Notice
Deposit Deposit

Figure: Deposit Criteria

34
3.2.1 Current Deposit
Janata Bank Limited offers customers current deposit facility for day-to-day business transaction
without any restriction. This deposit account pays no interest but a customer can withdraw
money from this account when he wants by presenting his account cheque over counter during
any working day. This type of account may be opened in the name of individual or firms. This
account suits best for business man or business firm.

Main requirements for opening Current Deposit Account:

a. Two copies of passport size photograph.
b. Photocopy of National ID card
c. Photocopy of TIN certificate, if any
d. Memorandum and Articles of Association. (for limited company)
e. Certificate of incorporation (for limited company)
f. Board resolution for opening of account and operation of account. (for limited
company only)
g. Up to date trade license (for organization)
h. Photocopy of VAT certificate, if any.
i. IRC & ERC copy, if applicable.
j. List of all the directors, if applicable.
k. Latest Form XII, if applicable.
l. Other papers (if necessary).
Main procedure to open Current Deposit Account:
a) Account Opening Form to be duly filled out and submitted to the concerned branch of
Janata Bank duly attested by an introducer who must be an account holder of any
branch of Janata Bank
b) An initial deposit is required for opening of the A/c.
c) Minimum balance is to be maintained in the A/c.
d) All required information and papers as per terms mentioned in the Account Opening
Form

35
 Properties Value

Rate of Interest 0.00%-0.00%

Duration -

Installment Type Any Time

3.2.1 Savings Deposit

SavingsBank Account can be opened in any branch of Janata Bank depositing any amount of
taka by any Bangladeshi citizen in the name of an individual or a group of individuals which can
be operated singly or jointly. Account holder can deposit or withdraw any amount during any
working day with prior notice or without notice.

Main requirements for opening a Savings Bank Account:

a. Account Opening Form to be duly filled out and submitted to the concerned
branch of Janata Bank along with three passport size recent photographs of the
applicant duly attested by an introducer who must be an Account Holder of any
branch of Janata Bank.

b. An initial deposit is required for opening of the A/c.

c. Minimum balance is to be maintained in the A/c.

d. A Savings Bank Account may also be opened in the name of a minor which has to
be operated by the minor's guardian.

e. An account in the name of an illiterate person can also be opened which is to be

operated by the account holder's thumb impression. For each and every
transaction of the Account the illiterate account holder has to present
himself/herself before the concerned Branch officials.

f. All required information and papers as per terms mentioned in the Account
Opening Form

g. Up to date trade license (for organization)

36
 h. Interest for the account is applied in June and December on monthly product
basis.

i. Photocopy of TIN certificate, if any.

Main procedure to open Savings Deposit Account;

a) Account Opening Form to be duly filled up out and submitted to the concerned branch of
Janata Bank which is duly attested by an introducer who must be an Account Holder of
any Branch of Janata Bank

b) An initial deposit is required for opening of the A/c.

c) Minimum balance is to be maintained in the A/photocopy of TIN certificate, if any.

d) All required information and papers as per terms mentioned in the Account Opening
Form.

Properties Value
Rate of Interest 3.50%
Duration -
Installment Type
Limit
Related Circular Instruction Circular No: 720/16

37
3.2.3Special Notice Deposit
Janata Bank Limited offers interest on customer's special notice deposit (SND) account and gives
facility to withdraw money at any time.

Requirements for opening a Special Notice Deposit Account:

i. Account Opening Form to be duly filled out and submitted to a chosen branch of Janata
Bank along with three passport sized recent photographs duly attested by an introducer
who must be an account holder of any Branch of Janata Bank.

ii. Minimum maintenance charge is required.

iii. An initial deposit is required for opening of the A/c.

iv. Minimum balance is to be maintained (as instructed) in the A/c.

v. All required information and papers as per terms mentioned in the Account Opening
Form.

Properties Value

Rate of Interest 3.50%

Duration -

Installment Type

Related Circular Instruction Circular No: 720/16

38
3.2.4 Fixed Deposit
A depositor can open Fixed Deposit Account for different terms with any branch of Janata Bank
easily. Any individual or a group of individuals can go to any branch, fill a prescribed form,
depositing cash or easily cashable instrument of FDR amount and a Fixed Deposit Receipt will
be issued by the Bank on behalf of the applicant.

Main requirements for opening a Term Deposit Account:

 Passport size photograph

 Photocopy of National ID card

 Photocopy of TIN certificate, if any

 Board resolution for opening of account and operation of account. (For Limited
Company only)

 Memorandum and Articles of Association. (for limited company)

 Certificate of Incorporation (for limited company)

 Other papers (if necessary).

Main procedure to open a Term Deposit Account:

 Account Opening Form to be duly filled up and submitted to the concerned branch of
Janata Bank which is duly attested by an introducer who must be an account holder of
any Branch of Janata Bank.

 An initial deposit for any term of fixed deposit is required for opening an A/c.

 Minimum balance is to be maintained in the A/photocopy of TIN certificate, if any All

required information as per terms mentioned in the Account Opening Form

 Interest will be paid to the account as per contract of fixed deposit terms.

39
 Duration Rate of Interest

3 month - below 6 month 4.50%

6 month- below 1 year 4.75%

1 year – below 2 year 5.00%-5.50%

Related Circular Instruction Circular No: 720/16

3.2.5 Scheme Deposit

Under this scheme Janata Bank offers various deposit schemes following monthly savings plan
suitable for all classes of people and continue depositing to complete the respective tenor.

Main requirements for opening a Scheme Deposit Account:

 Account Opening Form to be duly filled up and submitted to the concerned branch of
Janata Bank along with three copies of passport sized recent photograph of the applicant's
duly attested.

 Monthly fixed deposit is required for opening of the A/c.

 Account may also be opened in the name of a minor which has to be operated by the
minor's guardian.

 All required information and papers as per terms mentioned in the Account Opening
Form

Pre tenor encashment benefit:

1. If customer need money, customer can take loan from the bank at the bank’s terms and
condition.

2. In case of pre tenor encashment of the scheme, customer can still get attractive benefit.

* Condition: Government tax and excise duty are applicable.

40
Schemes Rate of Durati Installme
interest on nt Type
Janata Bank Double Benefit Scheme (JBDBS) 9.34%(Doubl
e in 8 (eight)
years)
Janata Bank Monthly Benefit Scheme (JBMBS) 9.00%(Month 3 Years Monthly
ly Simple
Interest)
Janata Bank School Banking Savings Activities 5.00%
Deposit Pension Scheme (DPS) 15.00% Monthly
Janata Bank Savings Pension Scheme (JBSPS) 9.00% 5 years
Medical Deposit Scheme (JBMDS) 8.00% 5 Years Monthly
Janata Bank Education Deposit Scheme (JBEDS) 8.50% 4/6 Monthly
Years-
8/10
Years
Janata Bank Special Deposit Scheme (JBSDS) 9.50% 10 Monthly
Years
Janata Bank Masik Amanat Prakalpa (JBMAPra) 10.00% 5 Years Monthly
Janata Bank Deposit Scheme (JBDS) 8.50% 10 Monthly
Years
Non-Resident Pension Scheme (NRPS) 8.50% 5 Monthly
Years-5
Years
দুগ্ধউৎপাদনওকৃত্রিমপ্রজননখাতেপুনঃঅর্ায়নস্কীম
থ 5 %( Limit 54
50,000 Tk.) Months
Retirement Savings Scheme (RSS) 11.00%(Mont 2 Years
hly Simple
Interest)%
Janata Bank Retirement Savings Scheme (JBLRSS) 12% Monthly
Continuous Benefit Account (CBA) Interest Rate
of 3 Months
Fixed
Deposit+1.00
%
Janata Bank Monthly Savings Scheme (JBMSS) 8.50%-9.00% 4 Years

Figure: Scheme Deposit Account (Source: http://jb.com.bd/products/scheme_deposit)

41
42
3.3Bank Remittance

Remittances of funds are one of the most important aspects of the commercial banks in rendering
services to its customers. Among various services rendered by the commercial bank to its
customers, remittance facilities are very well known and popular. The word ‘Remittance’ means
sending of money from one place to another place through post or telegraph. Banks extend this
facility to its customers by means of receiving money from one branch of the bank and making
agreement for payment to another branch within the country.

In general there are two types of bank remittance-

A. Foreign Remittance

B. Inland Remittance

3.3.1 Foreign Remittance:

A transfer of money from a migrant worker to their families or other individuals in their home
countries. Payment system consists of:

i. EFT (Electronic Fund Transfer)

ii. Instant cash payment (SRC)

iii. Web based spot cash payment (Cash over the counter)

iv. Wage Earners Development Bond (WEDB)

v. US Dollar Development Bond

vi. US Dollar Premium Bond

3.3.2 Facilities Offered to the Remitters

 Commission for issuance of Taka Drafts from JBL UAE branches has been reduced and
re-fixed from Arab Emirate Dirham 10.00 to Arab Emirate Dirham 4.00 and commission
for issuance of TTs drawn on Bangladesh and payable at any bank branch are re-fixed at
Arab Emirate Dirham 12.00 from Arab Emirate Dirham 30.00.

43
  Commission for issuances of Taka drafts at UAE branches has been reduced irrespective
of amount.

 1% interest above the normal savings deposit rate is offered to SB accounts receiving
foreign remittance.

3.3.3 Types of Accounts and US Bonds for Foreign Remitters

a. Non Resident Foreign currency Deposit Account (NFCD)

Expatriate Bangladeshi Nationals and persons of Bangladeshi origin including those having dual
nationality may open Non- Resident Foreign Currency Deposit Account with any authorized
dealer branch of Janata Bank Limited in Bangladesh for a period of one month, three months, six
months or twelve months on renewable basis by depositing minimum US Dollar 1000/- or Pound
Sterling 500/- . The eligible person may open this account at any time on their return to
Bangladesh. Interest on NFCD Account is applicable on the basis of Euro currency interest rate
which is tax free in Bangladesh. Principal amount including accrued interest is convertible in
local currency as well as reparable to the account holder abroad. This account may be maintained
as long as the account holder desires.

NFCD Account opening Forms are available with authorized dealer branches of Janata Bank
Limited in Bangladesh and Embassy/ High Commission Offices of Bangladesh abroad.

b. Resident Foreign Currency Deposit Account (RFCD)

Persons ordinarily resident in Bangladesh may open RFCD Accounts with the foreign currencies
brought in at the time of their return from abroad. This account may be opened with any
authorized dealer branches of Janata Bank Limited in US Dollar and Pound Sterling. Interest is
payable if the deposit is maintained for a term of not less than one month and the balance is not
less than US Dollar 1000/- and Pound Sterling 500/-. RFCD account may be maintained as long
as the account holder desires. Balances of such accounts are reparable abroad. On-Resident
Investor's Taka Account (NITA)

44
 c. Non-Resident Investor's Taka Account (Nita)

Expatriate Bangladeshis may invest their hard earned money in the Stock Exchange for purchase
of Bangladeshi shares and securities. For this purpose, the expatriates may open NITA account
with any authorized dealer branches of Janata Bank Limited. Dividend earned from
shares/securities is tax-free in Bangladesh. Balance of NITA account is repairable abroad at the
prevailing rate of exchange. NITA account may be operated by the nominee. The account
holders may nominate Janata Bank Limited to act as nominee also.

d. Wage Earners Development Bond (WEDB)

Expatriate Bangladeshi Wage Earners may invest their hard earnings in five years WEDB on
renewable basis for denomination of Taka 25,000/-, Taka 50,000/-, Taka 100,000/-, Taka
200,000/-, and Taka 500,000/- or any multiple of these amounts at attractive rate (Present rate
12.00% (with effect from 1st July 2010) compoundable in every six months) of interest and the
accrued interest is tax free in Bangladesh. Principal amount of WEDB is reparable to the bond
holder abroad at the prevailing rate of exchange. WEDB facilities are available in authorized
dealer branches of Janata Bank Limited in Bangladesh and in our four UAE branches. Moreover,
we have correspondent relationship with banks & exchange houses almost all over the world.

e. US Dollar Investment Bond and US Dollar Premium Bond (US Bonds)

The Government of the People's Republic of Bangladesh has introduced US Dollar Investment
Bond and US Dollar Premium Bond to facilitate investment of hard -earned foreign currency by
the non-resident Bangladeshis.

3.3.4Inland Remittance

The term inland means transfer of funds from one branch to another within the country through
banking instruments. Inland remittances is one of the activities under general banking of Janata
Bank Ltd. Janata Bank provides a trusted services so customers are encouraged to do their
transactions as a result money supply in financial industries keeps active.

Considering the urgency and nature of transaction, the modes of inland bank remittances may be
categorized as follows-

45
 a) Demand Draft (DD)

b) Mail Transfer (MT)

c) Telegraphic Transfer (TT)

The following register books are maintained for remittance purpose-

a) DD, MT, TT Issue Register

b) DD, MT, Advice Received Register

c) DD, MT, TT Payment Register

d) DD Ex-Advice Payment Register

 Demand Draft (DD) Issue:

The person intending to remit the money through a Demand Draft (DD) has to deposit the money
to be remitted with the commission which the banker charges for its services. The amount of
commission depends on the amount to be remitted. On issue of the DD, the remitter does not
remain a party to the instrument: i) Drawer branch ii) Drawee branch iii) Payee. This is treated as
the current liability of the bank as the banker on the presentation of the instrument should pay the
money. DD will be paid only by the drawing branch or paying branch. The banker event on
receiving instructions from the remitter cannot stop the payment of the instrument. Stop payment
can be done in the following cases:

 Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s
endorsement requires verification” is marked.

 Loss of draft after endorsement: In this case, the branch first satisfies itself about the
claimant and the endorsement in his favor.

Charges:

A commission of 0.10% is taken on the draft value & 15% vat on DD commission & Tk.25/= is
taken as postal charge.

46
Demand Draft (DD) Collection:

To cancel an issued DD, the client has to submit an application. Then DD issuing branch sends a
request letter to drawn branch to caption mark as “DD Cancel/Lost” in respective register.
Issuing branch then sends an Inter Branch Debit Advice (IBDA) to the drawn branch against
previously issued IBCA for reconciles the amount.

 T.T. Issue/Collection:

Though TT stands for Telex Transfer it is used as Telephonic Transfer since Telex has
eliminated. Telephonic transfer (TT) is another widely used mode for remittances of funds. In
case of telephone transfer the message for transfer of funds is communicated through tested
telephonic message. JBL generally recovers from the telephone charges in addition to the usual
service charges.

Issuing of TT:

JBL follows the following procedures:

a. The customer deposits money with JBL to be sent.

b. The customer obtains a cash memo containing TT serial number.

c. TT serial number, notifying part name is mentioned in the telephonic message.

d. The telex department confirms transmission of the telex.

 Mail Transfer (MT)

The facility of sending money by mail is available to customers who have accounts with the
bank. The remitter deposits the amount that will be transferred from the remitting branch with
small commission. An advice is issued by the branch to another branch for crediting the specified
amount to the account of the payee maintained with the bank. It is a non-negotiable instrument
and generally is not handed over to the customer rather sent through post office to the concerned
branch. Remittance of money by Mail Transfer is relatively cheaper, quite safer and more
convenient. Mail Transfer is effective not only within the country but also for international
remittances. For local MT (say within the area of Dhaka) special ‘MT Register Book’ is
maintained as in like DD. MT is normally issued from branch to branch of the same bank.
47
Normally the mail charge is tk.15 for any amount. From tk.1 to tk.20000 commission is tk.20
and for above tk.1 added for everytk.1000.The payment procedures for MT are as follows-

 MT is received directly from the issuing branch by post and the payee does not present it
for payment.

 The paying branch checks the name and account number of the payee in MT to determine
whether it agrees with the name and account number maintained in the paying branch.

 The paying branch verifies the signatures of the authorized officials of the issuing branch.

 MT is entered in the ‘DD, MT, TT Payment Register’.

 No commission is deducted.

 If everything related to MT is correct then the passing officer will pass the MT by putting
signature on it and the voucher is credited to the respective beneficiary’s account.

3.4Loan and Advances Department

Loan is a contractual agreement, in which a borrower receives something of value now, with the
agreement to repay the lender at some date in the future. One of the basic functions of bank is
deposit extraction and credit extension. It helps this kind of organizations to earn around 80% of
the total revenue. Managing Loan operation, thus, is the crying need for any bank.

A loan in terms of small business finance is a sum of money advanced to a business that must be
repaid, with interest at some point in the future. The lender must bear the risk that the borrower
may not repay the loan. The interest rate charged is the price for that risk. A loan is money,
classified as debt, for temporary use.

48
 Figure: Types of loan (Source; Janata Bank Limited Annual Report 2015, page: 184)

3.4.1 Types of loan

A. Continuous Loan:

i. Secured Over Draft against Financial Obligation [SOD (FO)]: This is the advance
given against the mortgage of the inventory, goods, real estate etc. In this type of
loan, one can withdraw and repay loan several times within a given period of
time.

ii. Secured Over Draft against Work Order [SOD (G)]:

a) Uses commercial/construction equipment as security collateral,

b) Quick processing of loan,
c) Attractive rate of interest,
d) Convenient facilities like Internet Banking and Phone Banking facilities,
e) Multi-location banking,

iii. Cash Credit (Hypothecation): This type of advance is made against the
hypothecated possession and ownership of goods or assets. In Hypothecation, the
real possession remains to the borrower. Loan disbursement and loan repayment
occurs several times for a given amount of money for a given period of time.

iv. Cash Credit (Pledge): When any advance is made against the pledge of goods or
assets then it is known as Cash Credit (Pledge). The possession and ownership

49
 passes to the Bank. Bank takes the control of the assets or goods. Loan
disbursement and loan repayment occurs several times for a given amount of
money for a given period of time.

v. Export Cash Credit (ECC): Janata Bank Limited provides a form of credit allowed
in the pre-shipment stage to an exporter, depending upon his credit requirements
against the primary security of raw materials or finished goods meant for export.

B. Demand Loan:

vi. Loan general

vii. Demand loan against ship breaking

viii. Payment against documents (pad)

ix. Loan against import merchandise (LIM)

C. Term Loan

x. Project loan

xi. Transport loan

xii. House building loan

xiii. Small business loan

D. Other special Loan

a) Credit for Employees: This type of credit is given to the employees of the bank to
meet up the emergency needs at 12% interest rate. Advance cheques of monthly salary are
considered as security that is repaid within 2 years in 24 installments.

b) Consumer Credit Scheme: Consumer Credit Scheme is related to relatively new field
of collateral free finance of the Bank. People with limited income can avail of this credit facility
to buy household goods including computer and other consumer durables. Interest rate is 12%
that is repaid between 1 and 2 years.

50
 c) Personal Loan Scheme: Personal Loan Scheme has been introduced to extend credit
facilities to cater to the credit needs of low and medium income group for any purpose.
Government and semi-government officials, employees of autonomous bodies, banks and other
financial organizations and multinational companies are eligible for the loan facilities.

d) Financing in IT Sectors: Today, we are living in the age of information that is

Internet. To accelerate the growth of information and expanding IT business in our country and
to attract young energetic in IT professions, Janata Bank Limited has launched a new credit
scheme titled “Financing Computer Software Development & Data Export.”

e) Car Loan Scheme: Car Loan Scheme has been introduced to enable middle-income
people to purchase Cars/SUVs/Jeeps. Governments and semi-government officials, employees of
autonomous bodies, banks and other financial organizations, are eligible for the loan facilities.

f) Financing of Industries: Janata Bank Limited entrusted with the responsibility of

developing industries within the frame work of Industrial policy of the Government of
Bangladesh and credit norms of Bangladesh Bank.

g) Staff loan: When the bank lends its money to its staff then it is called staff loan. The
following types of loan are supply to the staff:

a. House building loan.

b. Loan against provident fund.
c. Loan for motor cycle and bicycle.
3.4.2 Terms and Conditions of Loan Disbursement:

At the time of lending, bank judges the customer's credit worthiness. Bank collects information
from various sources for the security of credit information which is very essential for unsecured
loan. Bank can collect information from the following sources:

a) Loan application form

b) Ownership and changes there in.

c) Analysis of Financial statement.

d) Analysis of past Transaction made with the Bank.

51
 e) Credit Information Bureau Report (CIB Report)

f) Personal interview.

3.4.3 Loan Disbursement and Recovery System of JBL:

It is the duty of the recovery department of the Bank to recover the landed fund within the
stipulated time and if the borrower fails to repay the money within the specific period, Bank will
declare him as a defaulter and recover the fund by selling the securities given by the borrower or
by freezing his account or make a suit against him.

Loan Disbursement Procedure:

First, one must open a bank account and make some transactions .It makes a good relationship.
Then the client submits a request for loan. The credit officers make surveyor the collection of
information and bank’s special surveyor also makes a separate survey. Then they makes
valuation of mortgage. After that bank collects clients NID, picture, trade license, A/C
transaction report, land valuation report and guarantee paper of two guarantor and open loan file.
The guarantor must be a well-established person. Then the bank sanctions the loan and takes
necessary steps for monitoring.

 Request for credit from the client to a branch.

 Credit application from filled up by the customer & collection Document.
 Scrutinizing the document.
 Analyzing the information.
 Preparing the proposal.
 The proposal; goes to the head office through other necessary steps.
 Sanctioning the credit.
 Loan disbursement, supervision &monitoring.

Table: Loan appraisal and approval process

52
3.4.4Loan Recovery Procedures:

It is the duty of the Bank to recover the landed fund within the stipulated time and if the
borrower fails to repay the money within the specific period Bank will declare him as a defaulter
and recover the fund by selling the securities given by the borrower or by freezing his account or
make a suit against him.

Strategies for recovery:

Recovery of loan can be made in the following 3 methods.

a. Persuasive recovery:If the borrower didn’t paid the due

amount of loan in time then the first step of bank is private
communication with him. It creates a mental pressure on
borrower to repay the loan amount. In this case bank can
provide some advice to the borrower for repaying the loan.

b. Voluntarily recovery:In this method, some steps are followed

for recovering loan. This are-

 Building Task Force

 Arranging seminar

 Loan rescheduling policy

 Waiver of interest rate

c. Legal recovery: When all steps fails to keep an account

regular and the borrower does not pay the installments and
interests then bank take necessary legal steps against the
borrower for realization of its dues. In this case “Artha Rin
Adalat Ain-2003” plays an important role for collecting the
loan.

53
 Figure: Income from Loans and Investments (Source: JBL Annual report: 2015, Page: 184)

3.5Accounts:

Account Department plays most vital role in Banking. Accounts Department is a department
with which each and every department is related. It records the profit & loss A/C and statement
of assets and liabilities by applying of book-keeping. The functions of it are theoretical &
computerized based. JBL REB Branch records its accounts daily, weekly, and monthly every
record. Basically Accounts Department is not alone. Accounts department is a mix of as follows:

 Cash

 Transfer

 Clearing

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3.5.1 Cash:

This section of any branch plays very significant role in Accounts Department. Because, it deals
with most liquid assets of the JBL. This section receives cash from depositors and pay cash
against cheque, draft, PO, and pay in slip over the counter. Every bank must have a cash counter
where customer withdrawn and deposit their money. When the valued client’s deposit their
money at the cash counter they must have to full fill the deposit slip his/her own, then they sing
as the depositor option’s then they deposit their money through cash officer at the cash counter.

Operation of Cheque

A cheque, signed by the drawer is an unconditional order in writing and drawn on a specified
bank. Bank will pay a certain sum of money to the cheque bearer. A cheque involves three
parties-

a. The drawer

b. The drawee (the bank) and

c. The payee (to whom the cheque is to be paid)

The following procedures are usually done for passing a cheque-

a) A clerk scrutinizes the cheque for the date, the amount and the signature and then he
gives the drawer of the cheque a token number and he also writes that number at the back
side of the cheque. He then passes the cheque to the ledger-keeper after giving a seal.

b) The ledger-keeper again scrutinizes the cheque for his satisfaction. He then debits the
amount in the ledger book and passes the cheque to the authorized officer. The authorized
officer verifies the signature of the account holder very carefully to protect any kind of
fraudulent activities and passes it to the cash officer for payment.

c) The drawer of the cheque presents the token in the ‘Cash Payment Counter’ and the
cashier makes payment after verifying the token. The cashier may want another signature
to compare with the previous one.

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Stopped Cheque

a) In case of stopped cheque the following formalities are done-

b) The accountant keeps the ‘Stopped Cheque Register’ and reserves the pertinent
documents.

c) After receiving a letter or telegram for stopping the payment of cheque, the time of its
receipt is noted down by the accountant.

d) The ledger-keeper and the officials are also informed immediately.

e) Lastly the cheque is stopped.

Collection of Cheque

a) In Bank Branch, cheques of its customers are received for collection. In case of
received cheque, the following points are followed carefully-

b) The cheque should not carry a date older than the receiving date for more than six
months. In that case the cheque will be a ‘stale cheque’ and it will not be allowed
for collection. Again the date of cheque should not be more than one day forward
than the receiving date.

c) The amount in figures and words in both sides of the pay-in-slip should be same
and they will also be same in the cheque.

d) The name mentioned in cheque should be same in both sides of the pay-in-slip
and in the cheque.

e) The cheque must be crossed.

Clean Cash Book

The clean cash book is the abstract of each day’s transactions classified under the General
Ledger heading. Clean Cash Book is written to-

a) Test the arithmetical accuracy of one day’s transaction.

b) Consolidate one day’s transaction.

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 c) Help position in the General Ledger.

d) Test the closing cash balance of the branch.

The procedures for writing the clean cash book are as follows-

 At first the writer sees that the books are checked and authenticated by the authorized
officials properly.

 The clean cash book should be checked daily from the subsidiary register by an
authorized supervising official.

 Each morning the manager will scrutinize the whole of the previous day’s vouchers.

 All vouchers should be collected by the clean cash book writer and handed over to a
supervising official.

The General Ledger

After successful completion of the entry in clean cash book, all the balances of the account heads
are transferred to the General Ledger which is the final and the most crucial part of accounting
system of the branch. The debit side of the clean cash book is transferred to the credit side in the
general ledger book and the credit side of the clean cash book is transferred to the debit side in
the general ledger. A weekly/monthly statement is prepared in F-12 form by the branch and is
sent to the Head Office. The figures of F-12 form are collected from General Ledger. The
accounts in the branch’s General Ledger are as follows-

a) Janata Bank Ltd General Account (SBG A/C)

b) Fixed Deposit Account

c) Short Term Deposit Account

d) Saving Bank Account

e) Call deposit Account

f) Current Account

g) Pay Order Account

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 h) Drafts Payable Account

i) Demand Loan Account

j) Cash Credit Account

k) Foreign Bill Purchase & Negotiable Account

l) Bills for Collection Account

m) Forced Loan against Back to Back Loan Account

n) Advance against Merchandise Account

o) Discount Account

p) Interest Account

q) Exchange Account

r) Commission Account

s) Charges Account

t) Profit & Loss Account

u) Stationary Account

After paying this kinds of slip, the valued client waits for the deposit slip book outside of the
cash counter. The Deposit officer the money in their account through computer software, while
the depositors account credited, then he puts a seal in the deposit slip.

3.5.2 Transfer:

Basically transfer is a type of register maintaining matter. In this register officer write down
every day transactions in Debit and Credit side then the officer calculate both the side of the
register if both side shown same amount, it means that the total day’s transaction is completely
okay. Transfer is not a critical sector in banking but it is very important. Transfers play a vital
role in banking sector.

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3.5.3 Clearing

Janata Bank Ltd is a schedule bank. According to the Article 37(2) of the Bangladesh Bank
Order, 1972, the banks that are member of the Clearing House are called as ‘Schedule Banks’.
The schedule banks clear the cheques drawn upon one another through the clearinghouse. This is
an arrangement by the central bank where the representatives of the banks gather to clear the
cheques every day. The place where the banks meet and settle their dues is called the clearing
house. The clearing house sits for two times in a working day.

Bangladesh Automated Cheque Processing Systems (BACPS) has started its 'Live Operation' on
7th October 2010 in the Dhaka Clearing House area. BACPS uses the cheque Imaging and
Truncation (CIT) technology for electronic presentment and payment of paper instruments (i.e.
cheque, pay order, dividend & refund warrants, etc.). The system supports both intra-regional
and interregional clearing and is based on a centralized processing center located in Dhaka and in
designated clearing regions.

There are two types of cheque clearing under BACPS. High Value (HV) and Regular Value
(RV) Cheque clearing. Cheque amounting Tk. 5, 00,000 or above are eligible for HV clearing
which has shorter clearing cycle than RV.

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Utility Services

Besides normal banking operation, Janata Bank Limited offers special services to a large number
of clients/agencies throughout the country. Under the network of utility service, customers of
different govt. organizations, corporate bodies, local bodies, educational institutions, students,
etc. are continuously getting benefits from the Bank.

Janata Bank Limited's utility services are:

a) Bills Collection:

b) Gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and Distribution
Companies.

c) Electricity bills of Dhaka Electricity Supply Authority, Dhaka Electricity Company,

Bangladesh Power Development Board and Rural Electrification Board.

d) Telephone bills of Telegraph and Telephone Board.

e) Water/Sewerage bills of Water and Sewerage Authority.

f) Municipal holding tax of City Corporation/Municipalities.

g) A pilot scheme is underway to provide personalized services to our clients.

Payments made on behalf of Govt. to:

a) Non- Govt. teachers’ salaries.

b) Girl Students scholarship/stipend & Primary Student Stipend.

c) Army pension.

d) Widows, divorcees and destitute Women Allowances.

e) Old-age Allowances.

f) Food procurement Bills.

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 Chapter: 4

Analysis and Findings

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4.1 Analysis of general banking operations andFindings:
While working at Janata bank, Aminbazar branch; I have found thatJanata Bank has some
advantage on the following points:

A. Nationwide networks, 904 branches: Janata Bank Limited completed

computerization of all branches within 2013. Later, in 2014, the Bank
launched online banking activities through the globally recognized software
Temonus-24 (T-24). Online banking service was introduced at 174 branches
in 2014. More 329 branches were brought under online banking service in
2015, reaching the total number to 503 out of 908 branches.

B. Foreign Network 4 branches:Four (4) overseas branches of Janata Bank

Limited are situated in UAE & operating banking business & money
remittance etc. as per head office instructions and other activities as permitted
under the banking law of UAE.

C. Increase of inward remittance: The flow of inward remittances from

Bangladeshi nationals working abroad regained its growth in FY15 and played
an important role to increase foreign exchange reserve and strengthening the
current account balance of the country. Receipts from this sector increased by
7.7 percent from USD 14228.31 million in FY14 to USD 15316.92 million in
FY15.

D. State owned image: Janata Bank is a household name in the banking sector.
Not only this, JBL has already secured top position among SOCBs in terms of
continuous, successful performance. Also, it is the highest profit earner in
overall banking sector. Besides, JBL has recently placed itself in different
heights by providing rural credit, poverty eradication, SME and financing
heavy industries along with donation to CSR.

E. Strong deposit base: Overall deposits of the bank improved by 10.25 percent
and stood at BDT 568,911.13 million at the end of 2015. Savings deposits
increased to BDT 114,590.51 million from BDT 102,636.05 million of the
preceding year showing a growth of 11.65 percent, which helped to reduce

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 cost of fund and brought the ratio of high cost and low cost deposit to 55:45.
The growth was facilitated by opening of 4 (four) new branches and improved
service provided to customers.

F. Strong capital base: Janata Bank is committed to building a strong, business

expansion-friendly capital structure. To implement the plans, JBL is always
serious to follow the internationally recognized all policies and rules. In 2013
and 2014, the Bank’s capital adequacy were 10.16 percent and 10.30 percent
respectively, showing surplus capital. Due to restructuring of huge amount of
loans in 2015, the Bank had to lose huge interest income. Because of more
provision kept against the loan restructuring, like the previous continuing
trend, the Bank’s capital adequacy rate did not increase as on December 31,
2015, the Bank had capital adequacy of 10.27 percent which is more than
required 10 percent.

G. Low-cost banking services: The main objective of financial inclusion is to

build-up a Banking nation by providing low-cost banking services to the
unbanked, backward and limited income people. As a SOCB, JBL is
providing this service for a long time by practicing mass banking. Bangladesh
Bank’s encouragement and enthusiasm has added different dimensions for
expanding of financial inclusive banking. Marginal farmers, cleaners, street
children, social safety beneficiaries and students have opened 26, 14,736
accounts with JBL. Here, besides personal saving opportunity, account
holders are enjoying multiple banking facilities.

H. Skilled manpower and newly recruited talents: Skilled human resources or

manpower is the core asset of the bank and the main moderator of business
success. For this, the Bank prioritizes on hiring and placing right person at
right place for increasing human resources skills. Only the excellent team and
spirit of skilled manpower can ripe desired benefits including creating
dominance by delivering expected-level banking service under competitive
condition. Besides putting emphasis on strengthening team spirit, JBL also

63
 arranges adequate training program in abroad every year in a bid to increase
high standard skills including complete development of human resources.

I. Great sense of Corporate Social Responsibilities: Corporate social

responsibilities of JBL have set a milestone in the banking sector, especially
among the SOCBs. Since the inception of CSR activities in 2009, JBL
donated BDT 71.28 crore by 2015 in various fields, where history of
Liberation War and local tradition, cultural practices, education and research,
health and treatment, rehabilitation and poverty eradication and the protection
of environment have always got special preference.

J. JBL-Friendly board of directors: The bank’s Board of Directors and

Management make relentless efforts to ensure meaningful corporate
governance in credit administration, financial management, internal audit and
control of wasteful expenditures etc. The bank has instituted requisite tools
and techniques in this regard:

a) A well-structured organogram assigning duties and responsibilities of

the departments and personnel;
b) The bank is endowed under company law with its Board of Directors;
c) Strong internal control & compliance system to oversee lending,
administrative, financial and other operational matters.
d) Effective internal and external information flows.
e) Policy-based recruitment, promotion, transfer, and performance based
incentives with strict observance of transparency.

64
In my internship period, I have figured out some of the weak area in operation of Janata Bank
Limited:

a) Working desk and specific regular task for internee has not been allocated.

b) Higher cost of funding and customers’ pressure on yield may reduce margin.

c) Volatile money market and foreign exchange market may increase risk and reduce
profit

d) Current economic and liquidity condition may slowdown JBL’s deposit and business
growth

e) Lack of effective advertising and promotion is present in the present market.

f) Specifically it can be said that there is presence of lack of dynamic and prompt
customer service in some branches.

g) Excessive burden on software system may disrupt or delay transaction resulting in

information loss, disruption in business and financial transaction and customer
dissatisfaction.

h) Competition may reduce JBL’s market share and growth potential.

65
 Chapter: 5

Suggestion and Conclusion

66
5.1 Suggestion;
I have to make some recommendations based on the findings that I have got from my internship
period at Aminbazar Branch. The recommendation will help the bank to take necessary steps in
order to increase the satisfaction level of customers of Janata Bank Ltd. The following are some
recommendations for the company:

 The institution should conduct some primary research to get a better understanding of
the target market. They should also conduct surveys to find the extent to which their
services are meeting the needs and wants of target market.

 The bank should send the Relationship Managers and CRM employees to various
training programs for increasing the efficiency of employees to provide better service
to customers.

 Janata Bank Limited must be introducing credit card and ATM. Now a day’s most
of the banks are providing various service facilities like as 24 hours service, credit
card, ATM etc. If Janata Bank Limiteddoes not introduce those facilities
immediately then customers will shift to other banks that provide these services.
Online banking is very much in practice in today’s modern world. I highly
recommend launching of such services.

 Janata Bank Limited should give the competitive interest rate, so that the clients are
not shifting their accounts to other bank.

 Janata Bank Limited should develop advertisement that promotes the service
attributes and benefits with the models reflecting the target segments they are
approaching. To promote the image promotional activity can play an important role.
Preparing a television advertisement that would reflect the benefits and attributes of
the service to the target market. Allotting a handsome amount for the making and
broadcasting of new advertisement.

 As it has been found that some of the present products can no longer satisfy the
customers so new products should be introduced. The institution should completely
change its current product positioning and positioning strategies to establish their
products in the appropriate target market segments.

67
  Officials to be posted in Foreign Exchange, General Banking and credit Department
should be commerce background.

 Janata Bank Limited should provide short-term scheme like Micro credit for poor
people. They should spread their service to the rural area by introducing branch in
that area.

 Proper decentralization of power is necessary for promoting such dealings. This may
be done on the basis of examination by delegating more powers to a few branches.

5.1 Conclusion:

Banks play an active role for the development of the country. Janata Bank Limited has made
commendable improvement over the past years. I am proud to get an opportunity to continue my
internee and my career in my organization. I tried to gather experience in “General Banking” and
summarize all the information within the report. It will also be helpful for the bank management
if they carefully analyze the problem and consider recommendation in this paper and take
necessary actions for corrective measures.

During the 45 days of internship program at Janata Bank Limited, Aminbazar Branch, almost all
the desk have been observed by me. This practical orientation program, in first has been arranged
for gaining knowledge of practical banking and to compare this practical with theoretical
knowledge. Comparing practical knowledge with theoretical involves identification of weakness
in the branch activities and making recommendations for solving the weakness identified.
Through all departments and sections are tried to cover in which I got the chance to gather
practical experience for the internship program; it is not possible to go to the depth of each
activities of branch because of time limitation. However, highest effort has been given to achieve
the objectives the internship program.

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References
(n.d.). Retrieved from Janata Bank Bangladesh: http://www.janatabank-bd.com/

AKTER, M. (2015). Loan DIistribution And Recovery System of Janata Bank Limited. Dhaka.

Export Cash Credit (ECC) : What , How and Procedure. (n.d.). Retrieved from Banking Law And Practice:
http://bankerbd.blogspot.com/

Ghosh, A. K. (2015). Janata Bank Limited and Its General Banking Activities. Dhaka.

Hadi, M. A. (2015). An Analysis of General Banking Activities of. Dhaka.

Hossain, M. T. (2015). General Banking Activities of Janata Bank Limited. Dhaka.

Janata Bank Limited. (2015, December 31). Annual Report, pp. 9-14, 56,64,88,184,315.

Monetary policy and operations: Bangladesh Bank. (n.d.). Retrieved from Bangladesh Bank:
https://www.bb.org.bd/

Secured over draft against financial obligation. (n.d.). Retrieved from Course Hero:
www.coursehero.com

The End

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