Professional Documents
Culture Documents
1.1 Introduction
It’s simple enough to say that Bank is financial organization that deals with money. But
it is the precise most definition about bank. In modern age it is impossible to think a
country without bank. Banks play diversified role in an economy. Banking plays very
significant contribution towards socio-economic development of a country. This sector
is considered to be like the life blood the economy as well. As one of the most important
components of the financial system it forms the core of the money market and plays
very pivotal role in mobilizing resources for productive investments in a country which
in turn contributes to economic development. The efficiency of the sector is very
important for overall development of the country. The most important task that is done
by a bank is building of capital. That is the key factor of the development of an economy.
An Industrialized nation’s build their industrial sector with the help of banking sector.
The growth of the economy also depends on the performance of the banking sector.
Banks secure money of the society. Government takes various monetary policies. These
policies are implemented with the help of banking sector. It is impossible to do foreign
trade without the help of bank. Banks provide services that help the business sector a
lot to carry on the business.
This report has been prepared in the light of practical as well as theoretical knowledge.
Also it is prepared under the guidance and supervision of the core teacher. During the
internship program I have got a good idea about the bank and that is depicted in the
report.
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The report is on “General Banking Activities of Southeast Bank Limited: A Study on
Uposhahar Branch, Sylhet”.
In the program of BBA, courses were on business studies from theoretical aspects.
There were no sufficient scopes to learn practical knowledge about business and its
environment, theory and practices are inter-related and are equally important. Today’s
world all of the Commercial banks have significantly expanded and changed of their
financial services to the clients and governments. That is why every professional has to
possess clear concept regarding these changes and he/she needs to conform to these
changing environments. A professional is a person who is skilled in the theoretical,
scientific and practical aspect of an occupation and who performs with a high degree of
competence & integrity. This internship program assisted me to develop professional
attitude towards banking business & environment. Basically, this study will help to
construct a skillful tenure in banking sector. This report has been prepared in the light
of practical as well as theoretical knowledge that is shared by honorable management
executives of Southeast Bank Limited (Uposhahar Branch).
The core objective of this study is to gain realistic and practical understanding about
banking structure and activities. The broad objective and specific objectives of the study
are given below:
The broad objective of this study is to be familiar with the working environment of
present institutions, know the internal culture of the corporate world and fulfill the
requirements of BBA theoretical knowledge gained from the course work of the BBA
program in a specific field
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To gain knowledge about the activities and functions of General Banking: account
opening, accounts section, cash handling.
To relate the theoretical learning with the real life situation.
To provide recommendation on the basis of findings.
The report covers the background, functions and mostly the General Banking Activities
of Southeast Bank Limited. The preparation of this report offers a great opportunity to
have an in-depth knowledge of banking activities practiced by the branch. This report
has been made based on the experience gathered during the period of 3 months’
internship. It was a huge opportunity for me to practically learn and execute the entire
process of General Banking activities.
This study is based on secondary sources and also from primary sources.
1.6.1 Primary Sources:
Direct conversation with the bank officers;
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From Newspapers and Internet;
12 weeks are not enough to know about commercial banking operation through I have been
received maximum assistance from the every individual of the SEBL, Upashahar Branch.
Definitely, I could not produce an outstanding report for the time limitations. Due to the
time limit, the scope and dimension of the study has been curtailed. The Term paper is
likely to have following limitations:
Since the ideal size of data could not be taken, suggested operating process may
not be useful without appropriate modifications.
Due to shortage of time, the accuracy of information may not have been
completely perfect.
Lack of comprehension of the respondents was the major problem that created
many confusions regarding verification of conceptual question.
Confidentiality of data was another important barrier that was faced during the
conduct of this study. Every organization has their own secrecy that is not
revealed to others. While collecting data on SEBL, personnel did not disclose
enough information for the sake of confidentiality of the organization.
Rush hours and business was another reason that acts as an obstacle while
gathering data.
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CHAPTER 2: Overview of the Specific Industry
2.1 Introduction
Banks are among the most important financial institution in the economy. Banks are the
financial intermediaries that collect money from surplus spending individual and
institutions (whose current income exceeds their current expenditure and they have
surplus funds to save and invest) and loan this fund to the deficit spending individuals
and institutions (whose expenditure on consumption and investment exceeds their
current income and who therefore need to raise fund externally through borrowing).
Banking has changed in many ways through the years. Banks today offer a wider range
of products and services than ever before, and deliver them faster and more efficiently.
But bank’s prime function remains as it has always been. In Bangladesh banks are the
first choice for saving, borrowing, and investing their money.
A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital
markets. Bank can be called as an establishment authorized by a government to accept
deposits, pay interest, clear checks, make loan, act as intermediary in financial
transactions and provide other financial services to its customer.
Bank is a financial institution that accepts the surplus money of the people in the form
of deposit and gives it to other form of loans and advances.
According to John Harry, “Bank is an economic institution whose main aim is earn
profit through exchange of money and credit instrument.”
From the above definition we can say that, Bank is an institution which deals with the
money. It receives surplus fund from individuals or any organizations and gives money
to individuals or organizations that needed in exchange of profit or interest. So bank is
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an intermediary between the surplus units of the society who save and the deficit units
of the society who borrow.
Bank is a financial institution which deals with other people’s money i.e. money given
by depositors.
1. A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period.
2. A bank provides easy payment and withdrawal facility to its customers in the
form of cheques and drafts.
3. A bank works as an agent for its customer and provides utility services.
4. Banks make loans to consumers, businesses and organizations. Loans represent
funds that are extended by the Bank to the creditor who agrees to pay the funds
back, with interest, over a specified time period.
5. Banks are operated with the objective of making a profit. Their fee structure and
interest rate is designed with the intention of making money for owners and
shareholders.
6. A bank acts as a connecting link between borrowers and lenders of money. Bank
collects money from those who have surplus money and give to those who are in
need of money.
2.4 Banking
Banking is an activity which involves acceptance of deposits for the purpose of lending
or investing. Banking also involves providing various other services along with its main
banking activity.
According to the oxford dictionary of Finance and Banking, “Banking is the activities
undertaken by bank.”
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2.5 History of Banking
The English Word “Bank” is derived from Italian word “Banco” which means Bench. The
Latin “bancus” and French word “banque” which means a bench. There are the opinions
that the medieval European bankers (i.e. money changers and money lenders)
transacted their banking activities on the benches in the market place. This money
changing and money lending business is known as the “Banking Business.” The history
of Banking is very old; actually, the need of keeping the surplus of earning safely created
the need of banking activities. So, the concept of Banking first established around 2000
BC in Assyria and Babylonia. This concept spread to the Dutch Republic in the 16th
century and in the 17th century in London. Various monarchs have established the
necessity of banking in different ways. Banking concept was well established in the
whole Europe by the time of Adam Smith. He came along with the “Invisible Hand”
theory. Empowered by his views of a self-regulated company, money lenders and
bankers managed to limit the states’ involvement in the banking sector and the
economy as a whole. This free market capitalism and competitive banking found fertile
ground in the new world, where the United States of America was getting ready to
emerge. At first the US Banking system was not benefited by the smith’s theory. They
only issued bank notes against gold and silver coins. Alexander Hamilton, the secretary
of treasury established the national bank to direct the issuance of bank notes and
maintain the reserve of the bank notes. Gradually, many banking activities like loans,
corporate finance transferred at the hand of merchant banks. After the World War I, U.S.
replaced the Europe as the center of financial world. World War II created the
opportunity to spread the banking activities through the whole world. Banks have come
a long way from the ancient world, but the basic business practices have not changed.
Now, at the present world, banking activities have come in our own hand through the
blessings of internet and online activities.
After the liberation war, and the eventual independence of Bangladesh, the Government
of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central
Bank of the country, and named it Bangladesh Bank. This reorganization was done
pursuant to Bangladesh Bank Order, 1972 and the Bangladesh Bank came into existence
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with retrospective effect from 16 December 1971. In the 80s it was increasingly felt that
a number of PCBs might have improved their position putting nationalized banks into
competition. The launching of PCBs has finally created a significant impact in quality of
services in banking. Banking being a service industry, it is not easy to quantify the
performance of this sector like manufacturing.
After the independence, banking industry in Bangladesh started its journey with 6
nationalized commercialized Banks, 2 State owned specialized Banks and 3 Foreign
Banks.
In the 1980s banking industry achieved significant expansion with the entrance of
private Banks. Now, Banks in Bangladesh are primarily of two types:
The Banks which get license to operate under Bank Company Act, 1991 (Amended in
2003) are termed as Scheduled Banks. Banks which are included in the list of central
Banks are termed as Schedule Banks.
2.6.2Non-Scheduled Banks:
The banks which are established for special and definite objective and operate under
the acts that are enacted for meeting up those objectives, are termed as Non-Scheduled
Banks. These banks cannot perform all functions of scheduled Banks. There are 4 non
schedule banks.
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2.7 List of Banks in Bangladesh
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Woori Bank 2. Non-scheduled Banks (4):
Bank Al-Falah
Ansar VDP Unnayan Bank
Citi Bank NA.
Karmashangosthan Bank
F. Specialized Bank: Probashi Kollyan Bank
Rajshahi Krishi Unnayan Bank Jubilee Bank.
Bangladesh Krishi Bank.
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CHAPTER 3: Company Information
Southeast Bank Limited was established in 1995 with a dream and a vision to become a
pioneer banking institution of the country and contribute significantly to the growth of
the national economy. The Bank was established by leading business personalities and
eminent industrialists of the country with stakes in various segments of the national
economy. The incumbent Chairman of the Bank is Mr. Alamgir Kabir, FCA, a professional
Chartered Accountant.
Southeast Bank is run by a team of efficient professionals. They create and generate an
environment of trust and discipline that encourages and motivates everyone in the
Bank to work together for achieving the objectives of the Bank. The culture of
maintaining congenial work - environment in the Bank has further enabled the staff
members to benchmark themselves better against management expectations. A
commitment to quality and excellence in service is the hallmark of their identity.
Southeast Bank takes pride for bringing women into the banking profession in a
significant number for gender equality.
COMPANY PROFILE
Head Office Eunoos Trade Center 52-53, Dilkusha,
C/A (Level-2, 3, 4 & 16) Dhaka - 1000,
Bangladesh.
Date of Incorporation 12th March 1995
Principal Activity Commercial Banking
Legal Status Public Limited Company
Chairman Mr. Alamgir Kabir, FCA
Vice Chairman Ragib Ali
Managing Director ShahidHossain
Company Secretary Muhammad Shahjahan
Website www.southeastbank.com.bd
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Authorized Capital Tk. 15,000.00 million
Paid Up Capital Tk. 9,169.50 million
Year of Initial Public Offer 1999
Market Lot 50 Shares
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To keep risk position at an acceptable range (including any off balance sheet
risk).
To be the market leader both in terms of deposits and good loans among private
commercial banks.
Main objective is to have a higher profitability than that of the weighted average
of other banks.
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3.6 Hierarchy of SEBL:
Chairman
Managing Director
Deputy Managing
Director
Senior Executive Vice
President
Executive Vice
President
Senior Vice President
Vice President
Principal Officer
Executive Officer
Management Trainee
Senior Officer
Probationary Officers
Officer
Junior Officer
Asst. Officer
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3.7 Organizational Structure of SEBL, Uposhahar Branch:
Executive Officer
Senior Officer
Probationary Officer
Officer
Junior Officer
Asst. Officer
Bank is a service-oriented industry and deals with various financial products and
services for financial gains. Southeast Bank Limited is a full service Bank with adverse
array of comprehensive range of carefully tailored financial services and customer
friendly uncompleted banking products geared for the needs of all customers segments.
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Financial products and services products that Southeast Bank Limited offers to its
customers are mainly classified as under:
Deposit products are those products that are collected from the customers to generate
funds of the bank. The following deposit products are launched by Southeast Bank
Limited:
Conventional banking:
Islamic Banking:
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Mudaraba Hajj Sanchay Prokalpa
Southeast Bank Limited is offering the following loan and advance product to the client
for financing different purpose that fulfill the requirements of the bank and have good
return to the investment as well as satisfy the client. The loan and advance products are:
Overdraft (OD)
Project Finance
Import Financing
Export Financing
Foreign Remittance
International Business Products that is offered by Southeast Bank Limited are as under:
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Foreign Demand Draft (FDD)
Southeast Bank Ltd. Offered many services for their customer and following these are:
SME Banking
Virtual Card
Remittance Business
Western Union
SWIFT Services
Locker Services
ATM Services
E-Statement Services
Southeast Bank perfectly published its every annual report with disclosure and
Financial Statement complying the adopted Accounting Standard. In recognition, ICBA
has honored Southeast Bank with Recognition Award of Merit for the best published
accounts for the year 2016and 2017.
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3.11 Credit Rating of Southeast Bank Ltd:
Credit Rating Information and Services Limited (CRISL) has upgraded the rating of SEBL
with “AA” (pronounced as double A) in Long Term and reaffirms “ST-2” rating in Short
Term based on financials up to December 31, 2016 and other qualitative and
quantitative information. SEBL’s Long Term Rating has been upgraded to “AA” which
focused higher safety and higher credit quality. In Long Term here risk are modest and
may vary slightly from time to time because of economic conditions. This level of rating
indicates a banking entity with high quality, offer higher safety and have high credit
quality. The Short Term rating “ST-2” indicates high certainty of timely repayment.
Liquidity factors are strong and supported by good fundamental protection factors. Risk
factors are very small. SEBL thanks to its all valued stakeholders for making it happen.
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CHAPTER 4: General Description of the tasks completed during
Internship
To make profit in business you need to sell product or service. A bank does not produce
any tangible product to sell but does offer a variety of financial services to customers.
General banking is the starting point of all the banking operations. It is the department
which provides day-to-day services to the customers. Every day it receives deposits
from the customers and meets theirs demand for cash by honoring cheque. It opens new
accounts, remit funds, issue bank draft & pay orders etc. Since bank is confined to
provide the service every day. General banking is known as Retail banking.
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4.2 Function Of This General Banking Department:
General banking department has four functions such as front desk or account, cash
section, clearing section, account section in Southeast Bank. Those various sections do
various works by which general banking activities.
Accepting Deposits:
If a customer want to open an account, at first banker has to accept deposit. The
relationship between a banker and customer begins with the opening of an account by
the former in name of letter. Initially all accounts are opened with a deposit of money by
the customer and hence these accounts are called deposit account. Banker solicits
deposits from the number of public belonging to different lifestyle, engaged in
numerous economic activities and having different financial status. There are two
officers performing various functions in this department. The deposits those are two
accepted by SEBL may be classified into:
A) Demand deposit
B) Time deposits.
A) Demand Deposits:
The amount in accounts are payable on demand so it is called demand deposit account.
SEBL accepts demand deposits through the opening of-
Current account
Savings account
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Current Account:
Both individual and business open this type of account. Frequently transaction are
(deposit as well withdrawal) allowed in this type of a account. A current a/c holder can
draw check on his account, any amount and any number of times in a day as the balance
in this account permits.
Savings Account:
Individuals for savings purposes open this type of account. Current interest rate of these
accounts is 06% per annum. Interest on SB account is calculated and accrued monthly
and Credited to the account half yearly. Interest calculation is made for each month
based on the lowest balance at credit of an account in that month. A depositor can
withdraw from his SB account not more than twice a week up to an amount not
exceeding 25% of the balance in the account. If anyone withdraws money more than
twice he/she will not get the interest for that month.
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Depositor may withdraw his/her deposited money up to 25% of the Balance in
his/her account without notice. The bank may realize service charge in its
discretion.
B) TIME DEPOSITS:
A deposit which is payable at a fixed date or after a period of notice is a time deposit. In
SEBL Upashahar Branch accepts time deposits through Fixed Deposit Receipt (FDR),
Short Term Deposit (STD), and Schemes etc. While accepting these deposits, a contract
is done between the bank and the customer. When the banker opens an account in the
name of a customer, there raises a contract between the two. This contract will be a
valid one only when both the parties are competent to enter into contracts. An account
opening initiates the fundamental relationship and since the banker has to deal with
different kinds of persons with different manner.
After accepting deposit banker in Southeast Bank Limited at Upashahar Branch, person
or organization has to fill up account opening form. Account opening form consist of-
Signature card
Personal information sheet
KYC
SBS
But these could vary depending on type of account. Clients have to provide the following
information:-
Name of applicant(s),
Present address,
Permanent address,
Date of birth,
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Nationality,
Occupation,
Special introducer ,
Initial deposit
Specimen signature of the applicant(s),
Introducer’s information etc.
Source of Fund
If the transaction profile does not match with KYC, bank should report to Bangladesh Bank. Then
signature of that person or organization who are opening account is needed attested by introducer
signature of that person or it and specimen signature card. The individual who is going to be
customer need properly introduced by following:
An existing customer,
Officials of the bank who are not the rank of Assistant officer,
A respectable person who is well known to the Manager or authorized officer.
The authorized officers analyze the introduction and examine the documents that have
submitted such copy of National Id/copy of passport/ copy of driving license of that
person who open account, copy of nominee(s) National ID, photograph of that person
and photograph of nominee(s).then concern authority will allocate a number for a new
account. Then customer deposits the “initial deposit” by filling up deposit slips. Initials
deposit to open a current account in SEBL is TK.10000 or saving account is tk.500.after
depositing the cash one cheque book and pay-in-slip book is issued. The account is
considered to be opened in SEBL at Upashahar Road Branch. Upashahar Road Branch
maintains account in computer through Bank Ultimus Software. After depositing the
initial deposit, Upashahar Branch records it in the computer by giving new account
number. Then it issues a cheque book requisition slip by the customer. That distributes
all relevant paper to relevant department.
Fixed Deposit Receipt offers the customers the opportunity to invest a fixed amount for
a fixed period at a fixed rate of interest. The customers have the option to re – invest
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their funds both principal amount and interest amount on maturity or principal amount
and the interest amount being paid into their SB or CD accounts. Money can grow with
attractive interest rate with flexible tenure.
If the account is a joint account, then the joint account holder should submit a
declaration and operational instructions of the account along with their signature.
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Extract of Resolution of the Board/General Meeting of the company for opening
the account and authorization for its operation duly certified by the
Chairman/Managing Director of the company. List of Directors with address (a
latest certified copy of Form-XII).
(D) Club/Society:
Following documents have to be obtained in case of the account of the club or
society:
(F)Trustee Board:
The AOF is to be filled in and signed by either the parents or the legal guardian
appointed by the court of law and not by the minor.
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Short Term Deposit (STD) Account:
In Short Term Deposit account, the deposit should be kept for at least seven days to get
interest. The interest offered for STD is less than that of savings deposit. In SEBL, SMR
various big companies, organizations, Government Departments keep money in STD
accounts. Frequent withdrawal is discouraged and requires prior notice. STD Account
opening procedure is similar to that of the saving account Interest rate for STD account-
---------6.00% per annum
In SEBL, SMR usually customers give an instruction to the Bank that their current
account will be debited whenever its deposited amount crosses a certain limit and this
amount will be transferred to the STD account. Southeast Bank Upashahar Branch has
some other Special Schemes which is given below:-
A Person of 18 years of age and above having a sound mind can open the account
A person can open more than one DBS account at any branch of the Bank of the
Bank and in such case separate form should be filled.
DBS account can be opened in the name of a minor. In that case, Banks existing
account opening formalities for opening accounts for minor will be followed.
Duration: 2 years, 3 (three) Years & 5 (Five) Years Amount of Monthly Installment:
TK.500 or Multiple amount up to TK.25, 000 (Twenty five Thousand).
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Terms and conditions:
A Person of 18 years of age and above having a sound mind can open the account
A Person can open more than one MMSS account at any branch of the Bank and
in such case separate form should be filled
Account opened within first 10th of any month will be treated as account of that
particular month. If the account is opened after 10th of any month in that case
1st installment will be due and realized from the next month.
MMSS account cannot be opened in the name of any minor, in joint names, or I n
the name of institution.
An account can be transferred from one Branch to another Branch of the Bank by
a written application of the account holder. In such case a fee of TK. 500 is
payable as banks service charge
Duration of the Account: 3 (three) Years & 5 (five) years Amount to be Deposited:
TK.10, 000 or its multiple (Deposited amount will be returned on maturity).
A Person of 18 years of age and above having a sound mind can open the account
A person/institution can open more than one MMIS account at any branch of the
Bank and in such case separate form should be filled.
The applicant must open /have a CD Savings Deposit account within the branch
in which monthly income will be credited automatically.
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MMIS account cannot be opened in the name of any minor but it can be opened in
joint names, or in name of any institution
An account can be transferred from one Branch to another Branch of the Bank by
a written application of the account holder. In such case a fee of TK. 500 is
payable as banks service charge
A Person of 18 years of age and above having a sound mind can open the account
A person can open more than one MPSS account for different amount at any
branch of the Bank and in such case separate form should be filled in.
A passport size photograph of the account holder and each nominee (attested by
the account holder) are required to open the account
Account opened within 10th of any month will be treated as account opened on
the particular month. If the accounts opened after 10th of any month in that case
1st installment will be due from the following month and will be realized in the
following month.
MPSS account can be opened in the name of minor .In that case minor’s legal
guardian can operate the account
When a customer’s account is opened, a fresh cheque is issued to the account holder
only after against requisition on the prescribed requisition slip attached with the
cheque book issued earlier, after proper verification of the signature of the account
holder personally or to duly authorized representative against proper
acknowledgement. The following procedure is occurred in issuing cheque book:
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A customer who opened a new account initially deposit minimum required money in
the account. Then account opening form for is sent for issuance of a cheque book.
Respective officer first draw a cheque book. At present one officer. Officer then sealed it
with branch name .in-charge officer enters the number of cheque book in cheque issue
register. Officer also enters the customer‟s name and account number in same register.
Account number is then writing down on face of the cheque book and on every leaf of
book including requisition. Customer who opens new account initially deposits
minimum required money in the name of customer is write down on face of cheque and
on requisition slip. The word “Issued on” along with the date of issuance is written
down on requisition slip. . Then number of cheque book and date of issuance is also
written on application form. Next, customer is asked to sign in cheque book register.
Then respective officer signed on face of requisition slip. Put this initially in the register
and hand over the cheques book to customer.
Duplicate cheques book instead of lost one should be issued only when an A/C holder
personally approaches the Bank with an application Letter of Indemnity in the
prescribed Performa agreeing to indemnify the Bank for the lost cheque book. Fresh
check Book in lieu of lost one should be issued after verification of the signature of the
Account holder from the Specimen signature card and on realization of required Excise
duty only with prior approval of manager of the branch. cheques series number of the
new cheques book should be recorded in ledger card and signature card as usual. Series
number of lost cheques book should be recorded in the stop payment register and
caution should be exercised to guard against fraudulent payment.
All the procedure for issuing a new cheques book for old account is same as the
procedure of new account. Only difference is that customer have to submit the
requisition slip of the old cheques book with date, signature and his/her address.
Computer posting is then given to the requisition slip to know the position of account
and to know how many leaf/leaves still not used. The number of new cheques book is
entered on the back of the old requisition slip and is signed by the officer.
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Procedure of issuance of a new cheques book:
If the cheques are handed over to any other person then the account holder the bank
addressing the account holder with details of the cheques book issues an
acknowledgement slip. This acknowledgement slip must be signed by the account
holder and returned to the bank. Otherwise the bank will not honour any cheques from
this cheques book. At the end of the day all the requisition slips and application forms
are sent to the computer section to give entry to these new cheques.
Dishonor of Cheque:
If the cheque is dishonored, SEBL sends a memorandum (cheque return memo) to the
customer stating the reason in the following way:
Refer to drawer.
Exceeds arrangements.
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Transfer of an account:
Upon the request of a customer, Southeast Bank Limited (SEBL) closes an account of
that customer. After receiving an application from the customer to close an Account, the
following procedure is followed by banker of SEBL. Then banker of front desk of SEBL
ask customer to draw the final cheque for the amount standing to the credit of his
account less the amount of closing and other incidental charges and surrender the
unused cheque leaves. The account is debited for amount closing charge (230 taka) etc.
An authorized officer of Southeast bank Limited destroy unused cheque leave. In case of
the joint account, the application for closing the account should be signed by all join
holders. A banker can also close the account of his customer or stop the operation of the
account under following considerable circumstances:
A banker can stop payment of cheque of his customer under following considerable
circumstances
Firstly the account holder will apply to stop the payment of his cheque
The officer will see the condition of account and verify everything
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In the ledger book, the officer will marked with red ink and the cheque will not be
paid.
If the cheque is dishonored due to insufficiency of funds SEBL inform the a/c holder
immediately.
Cash section is very important for bank because here the cash transaction is made. Cash
sections demonstrate liquidity strength of a bank. There various systems are
maintained by a cash officer in Southeast Bank, Upashahar Branch. There are four
employees in cash section southeast Bank Limited at Upashahar i Branch. Those various
systems:-
Vault:
The cash department is the riskiest department of any bank. This is the section tight
security is required to avoid any accident. There is limit to amount of cash that each
counter carries. Carrying of excess cash is avoided for safety reason. If there is any
surplus in cash then the excess amount is sent to the Bangladesh Bank. Or if there is any
shortage of cash in the cash section then the shortage amount is borrowed from
Bangladesh Bank or Head office of SEBL or other bank.
Cash Receipt:
When client deposited in the bank, the bank officer follow the following common
precaution.
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Write the domination of the currency at the back of the pay in slip or the credit
voucher in the receiving cash officer book
Carbon copy of the deposit slip must handover to the client with proper seal and
signature
Cash Payment:
Cheques, demand drafts, pay order, pay slip and debit cash vouchers etc are received
from various departments for payment of cash to the customers or payee in Southeast
Bank Limited. Period payment of cash it is the officer’s duty to make sure that the
cheque or the instrument has been genuinely passed. The following common precaution
is thoroughly practiced before honoring a cheque
The date in the cheque are asked to present after the date are given
In case, where a prior arrangement has been made with the bank, a client may
overdraw.
Books maintained by cash department: Book at the southeast bank means register.
Southeast Bank Limited maintained some register .Those registers are vault register,
cash receives register, cash payment register, cash position register. In vault register
maintain amount of cash available at Upashahr Branch in SEBL .Then keeps record of all
incoming cash in cash receive register. Whether in cash Payment registers keep record
of all out going cash. Then finally keeps record of balance that is available notes and
coins in cash position register.
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Other Registers:
Automatic Machine in cash section: Cash section of southeast bank has two automatic
machines. one is money counting machine another one is money detector machine .with
the help of money counting machine officer can easily count the money and find out the
fake money by money detector machine .
This section receives all kinds of cheque in favor of the client for clearing on the part of
their banking services. After receiving cheque it is necessary to endorse it and cross it
specially. There are four types of cheque for clearing:
It refers the instruments drawn on Southeast bank received by other banks in the
clearing house from the representative of other bank.
When our branch sends Cheques to other branch of Southeast bank is called OBC.
Accounting treatment of this process:
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Inward bills for collection (lBC):
There are two types of clearing; firstly cheque collects from the other branch of
Southeast bank These Cheques are settled by sending to the debiting depositors account
and crediting sender’s branch account. Secondly cheque collects from another bank
outside the clearing house. These cheque are settled debiting depositors account and
sending DD or TT in favor of senders bank.
Outward Clearing Cheque (OCC):
Cheque drawn of another branch of Southeast bank is called Outward Clearing Cheque.
These types of cheque are directly sent to the respective branch and request them to
send IBCA.
Account department is called the nerve center of the bank. In banking business,
transaction is done every day and these transactions are to be recorded properly and
systematically as the banks deal with the depositor’s money. Any deviation in proper
recording may hamper public confidence and the bank has to suffer a lot otherwise.
Improper recording of transaction will lead to mismatch in the debit and the credit side.
to avoid the mishaps bank provide separate department whose function is to check
mistakes in passing vouchers or wrong entries or fraud or forgery. This department is
called account department. This department of southeast bank limited has to prepare
some internal statement as well some statutory statements which to be submitted to
Bangladesh Bank. Account department of southeast bank limited prepare this statement
and has to submit some statement to head office which is consolidated by the head
office.
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Preparing the daily statement of affairs showing all assets and liabilities of SMR
Branch in SEBL as general and subsidiary ledger respectively
Recording enter branch fund transfer and provide accounting treatment in this
regard
Checking whether all vouchers are correctly passed to ensure the conformity
with the activity report. If making it correct by rectified by concern officer
Recording of the vouchers in voucher register
Packing of correct vouchers according to the debit voucher and credit voucher
Periodic task:
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CHAPTER 5: Human Resource Management Performance
5. 1 Introduction
Human resource management involves all management decisions and practices that
directly affect or influence the people or human resources, who work for the
organization. In recent years, increased attention has been devoted to how
organizations manage Human Resources. This increased attention comes from the
organizations that an organization’s employees enable an organization to achieve its
goals and the management of these human resources is critical to an organization’s
success.
Byers & Rue: “HRM is the function facilitating the most effective use of people to
achieve both organizational and individual goals”
Storey J: “Human resource management is a distinctive approach to employment
management which seeks to achieve competitive advantage through the strategic
deployment of a highly committed and capable workforce, using an array of cultural,
structural and personnel techniques”
Today, professionals in the human resources area are important elements in the success
of any organization. Their jobs require a new level of sophistication that is
unprecedented in human resources management. Not surprisingly, their status in the
organization has also been elevated. Even the name has changed. Although the terms
personal and human resources management are frequently used interchangeably, it is
important to note that the two connote quite different aspects. Once a single individual
heading the personal function, today the human resource department head may be a
vice president sitting on executive boards and participating in the development of the
overall organizational strategy.
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5.3 Functions of Human Resource Management in Southeast Bank
Limited
Job Analysis
Human Resource Planning
Recruitment and Selection
Training and Development
Performance Appraisal
Promotion and Transfer Policy
Compensation Policy
Employee Relation Management
Health and Safely Policy
A list of a job’s “human requirement”, that is, requisite education, skills, personality, and
so on another product of a job analysis.
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5.5 Human Resource Planning
Job description of Southeast Bank Limited:
Responsibilities:
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5.5.2 Position: Branch Manager
Job Grade: First Assistant Vice President (FAVP)/ Assistant Vice President (AVP)/
Senior Assistant Vice President (SAVP)/Vice President (VP)/ Senior Vice President
(SVP)
Age: Maximum 52 years
Responsibilities:
Strengthening existing customer relationship to grow branch business while
ensuring compliance.
Providing high quality of customer service
Establishing sales goals and activities to book new customer
Ensure effective process and controls for preventing money laundering in line
with the regulatory requirements.
Job Grade: Senior Officer (SO)/Junior Assistant Vice President (JAVP)/First Assistant
Vice President (FAVP)/ Assistant Vice President (AVP)
Age: Maximum 35 years
Responsibilities:
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Arrange AML training / workshop / conference for the employees.
Make correspondence with branches regarding mitigation of lapses detected by
BFIU and CHO team.
Take necessary steps to submit compliance report to BFIU on the inspection
reports submitted by them.
Arrange AML training /workshop/conference for the employees.
Qualification and other competencies:
Post graduate / MBA from reputed local or foreign universities having no third
class in any examination.
Knowledge about AML standard procedures, practices and transaction
monitoring.
Through knowledge on regulatory requirement and BFIU Compliance issues.
3 years of banking experience for SO, 4 years of experience for JAVP and 7 years
of experience for AVP in the related field.
Responsibilities:
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5.6 Recruitment and Selection:
Recruitment
When a vacancy occurs and the recruiters receive authorization to fill it, the next step is
a careful examination of the job and an enumeration of the skills, abilities, and
experience needed to perform the job successfully. The Recruitment Process of the
Organization:
Organization
Impress applicants
Make Offer
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CHAPTER 6: Responsibilities Performed during Internship
I did my three months internship program in Southeast Bank Ltd., Upashahar Branch. I
got the opportunity to work in different department of the branch. I found myself very
fortunate and blessed for being able to associate with one of the renowned banks in
Bangladesh.
The report has been prepared on the basis of experience gathered during the period of
internship. Within this period, I mainly worked with department namely General
Banking, Accounts department. I also work with Foreign Exchange Department for a
really short time. Southeast Bank does not follow any specific guideline for the
internship students. Upashahar Branch has to do a lot of work and is really very busy all
the time. They have huge pressures compared to other branch. The Branch treated me
as one of their employees not just an intern. So, I had to do a lot of work.
In this department, I started my work learning how to open a Bank account, how to fill
up the customer’s bank account opening forms. My immediate supervisor tried to give
me a brief description of his regular tasks before assigning me to any kind of activities.
Later on through my personal observation and guidance of the superior officer, I came
to know about different types of account like current account (C/A), savings account
(SA), STD, FDR etc. He also assisted me on how to answer clients versatile questions
regarding different account opening, what amount of interest they will get from
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different types of account, how to locate desired cheque books form the bundle
according to customers requirement, how to receive phone calls and transfer them to
other employee, how to keep patience and deal with the busy customers.
I usually give the information to the customers about their desired accounts. If
they wanted to open a savings account I told them that they have to give 2 copies
of their Passport size photographs and 1 copy Passport size photograph of the
nominee. They are also required to submit the photocopy of their utility and a
photocopy of their passport/national ID card. If they submit their tin number
Government will take 10% of their savings amount but if they do not have tin
Government will take 15% of their savings amount.
I used to update the customer’s account opening form.
I gave product related information to the clients.
I made phone calls to the customers if they did not submit all require documents.
I used to do cheque book and ATM card entries on register books and keep those
books at a safe place.
I worked in cash for 2 days where I received clearing cheque and separate
deposit slip from the cheque.
I distributed cheque books by asking them their name, account number and
made them sign on register books and then their sign verified by an officer.
I made phone calls to the customers who did not collect their cheque book or
ATM card after passing 3 or 4 months.
I put everyday courier to the savings account and also other require documents
which I got after opened an account.
Sometimes I checked voucher of other officers.
I used to do incoming mail entries in the incoming mail register.
I sometimes used to scan and print documents needed by officers.
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6.4 Observations
Throughout my internship program, I have observed some aspects of this branch. Those
are given below:
Employees of Southeast Bank Limited were very much co-operative and friendly.
They have extreme level of patience. They were always giving me a proper
instruction before assigning me any kind of work.
Employees there always try their best to help their customer.
The authority of Southeast Bank Limited is exceptionally strict about punctuality.
Branch Manager held a meeting on first working day of a week and on that day
women employees has to wear saree.
The FVP and HOB has a good communication skill. He knows how to hold their
esteemed customer.
They also maintain the festive culture on every occasion.
Despite all the positive responses I have also come across some negative issues.
Those are given below:
Lack of manpower: Since the main branch is one of the oldest branches, the
workload of the branch is very high compared to other branches of Southeast Bank
Ltd. But they do of have enough workforces to manage the work pressures. If one
employee is absent or on a leave, another employee from same department has to
look after the responsibilities of two people. This can cause lack of motivation.
Lack of dynamic and prompt customer service: Since number of new banks is
increasing and they are introducing a very competitive customer service. Nowadays
people have very little time to waste and want fastest and unique services in short
time. But there are only two employees handling the overall customer service
department. So, sometimes they do not get the time to satisfy all the customers and
customers have to wait a long time and lost their patience.
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Shortage of availability of machineries: The branch needs more printers and
photocopy machines. Employee’s activities are hampered most of the time for
maintaining serial as well as it creates gathering on their short space.
Lack of effective advertising and promotion: Advertising and promotion is one of
the weak points of Southeast Bank Limited. They do not have any promotional
activities.
Congested office area: Due to congested area, most of the customers do not get
seats on the pick hours.
Unsatisfactory software performance: Southeast Bank Ltd. uses stellar software
to perform their tasks. But sometimes the server becomes very slow and the
software does not work properly. If customers come or call to know their balance
amount on that time, the employees cannot give them the information.
After finishing my internship from this bank, I have realized that the problems
mentioned above can create obstacles for future prospect. Therefore, the management
should be little more careful about their employees.
To solve above problems Southeast Bank Ltd., Upashahar Branch can do some of the
following things.
As a BBA student I learned many things from BBA program, gained a variety of
knowledge through the class lectures, text books, assignments, presentations, viva,
exam etc. while conducting my internship at Southeast Bank Ltd, this knowledge was
very helpful which I practically applied.
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6.5.1 Banking & Insurance
I learned about various types of account; such as savings deposit account; fixed deposit
account; current deposit account etc. when I joined in internship and worked in Account
Opening section; I gained knowledge about various negotiable instruments, but
practically saw those instruments in the bank.
6.5.2 Marketing
I have learned from this subject that the financial success often depends on marketing
ability. During my internship, I was able to identify who are seller, buyer, customer,
consumer, user etc. I was introduced with those in marketing subject.
6.5.3 Accounting
From these courses I came to know about the accounting system of an organization like
Bank. I have learned how to make trial balance, income statement, balance sheet, cash
flow statement. In Bank, there were many statements which I learned in academic
courses.
In my BBA program, the “Principles of Management” is the most effective subject. There
are many parts of management- planning, organizing, leading, controlling, motivating,
employment. I have achieved more knowledge about management. I am successful in
my internship program by applying theoretical knowledge of above stated parts. Hence,
the knowledge will play important role in my career, family & social life.
This subject is very important and effective subject in my BBA program. It is very
essential to learn about professional behavior. I have maintained good behavior with
my colleagues, client’s authorities during my internship program.
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proper reference in a report through bibliography. It made me aware about the purpose
of the report.
Business Communication is one of the most essential courses. From this subject I
learned how to compose different types of letter and how to prepare a standard CV. I
got special benefit in my internship program by applying the theoretical knowledge of
Business Communication which is why the CV and cover letter is the excellent example
of the application.
Last but not the least, since "Finance and Banking" was my major subject and I
completed my internship in a financial institution- Bank, it was quiet easy for me to
understand between the theoretical and practical differences. I have learned how
financial transactions are dealt, I have learned about different types of accounts, loans,
how e-banking are conducted, and what could be the goal of a financial institution. I
have learned all of this while studying BBA.
Although all of these courses are important for practical working experience, it is true
that academic knowledge is not fully used in practical working, but I think all of the
subjects of BBA program are linked with each other. So, it is sometimes hard to find any
deviation of academic knowledge with practical working experience.
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CHAPTER 7: Findings, Recommendations & Conclusion
While preparing the report and analyzing the data, I have identified some major
findings. I have only worked at Upashahar Branch of Southeast Bank Limited. Therefore,
if the practices and corporate culture of Southeast Bank as a whole is believed to be the
same as the Upashahar Branch, then the followings are the findings of my report:
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within the branch. The transfer takes place within the span of one to two days,
which is very short time for the credit department employee to train his/her
replacement.
There is lack of promotional strategies undertaken by Southeast Bank Limited. This
causes substantial unfamiliarity of the bank among the rural people. It may hinder
its long term strategies in terms of reaching large number of customers.
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7.2 Recommendations
Here in this part, I came up with the following recommendations which Southeast Bank
Limited can move forward towards progress:
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Training program: Bank can arrange different training program on different
banking rule and regulations set by Bangladesh Bank which will optimize the
efficiency of employees.
Bigger office space: The bank authority should rent bigger office space in order to
reduce the storage problem if required.
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7.3 Conclusion
The roles of financial institutions have become exceedingly crucial with the increase in
the economic development in Bangladesh. Southeast Bank Limited is the third
generation bank that is also contributes to the socioeconomic development of the
country. Although Southeast Bank Limited has some issues that are needed to be
resolved, nevertheless it is progressing and has a greater prospect to develop further
ones the problems are resolved.
Internship program is very important for every business student as we only have
acquired theoretical knowledge. This program gives us the prospect to have the
practical knowledge so that we can relate the theories to the reality. I am fortunate
enough to complete my internship program at Southeast Bank Limited, Upashahar
Branch. Moreover, I got the chance to work in the General Banking department as well
as in Foreign Trade department for some time. Although the internship period is very
short to acquire in-depth knowledge, yet it gave me the taste of commercial world.
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References
Books
Reza, S.M., & Rabbani, G.M. (2014), Research Methodology, Dhaka, Grantha Kutir
Varshhney, P.N. (2001). Banking Law And Practice, Revised Edition, Sultan Chad &
Sons.
Ali, S.A, & Howlader, R.A(2000), Banking Law And Practice, Revised Edition, Mowla
Brothers
Khan. Dr. A R. (2008) Bank Management-A Fund Emphasis,1st Edition, Dhaka,
Bangladesh
Malhotra K. Naresh, Dash Satyabhusan (2010), Marketing Research, Exploratory
Research, Design: Primary And Secondary Data, 16th Edition
Lawrence J. Gitman (2009) Principles of Managerial Finance, Financial Statements
and Analysis, 12th Edition
Websites
http://www.bankasia-bd.com/
http://www.bankasia-
bd.com/annual_reports/Bank_Asia_Annual_Report_2013.pdf
http://www.thedailystar.net/xpress-money-teams-up-with-bank-asia-9306
http://www.thefinancialexpress-bd.com/2016/05/11/29828/Bank-Asia-
receives-BB-appreciation
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Appendix
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