1.

0 Introduction:

Bank plays an important role in the business sectors and in the industrialization of a country.
Basically the banks take deposits from the customers against interest and lend it to the
borrowers against interest for a cessation period. Under these circumstances of banks offers
different interest rates and other options to the customers to remit and deposit their money.
These options are very common among the entire bank, but only the customer services and
other facilities vary from bank to bank.

There are Govt. Banks, Semi-Govt. Banks, and Private sector commercial bank in our country
and also it is the third generation private bank in Bangladesh. It started its crucial
moment/juncture when Bangladesh economy was undergoing through massive economy
reforms and pursuing unilateral and multilateral trade liberalization with the backdrop of the
World Bank made international monitory fund recommendations. This JBL with its twenty
three branches in strategize locations of the country is providing the best quality services to
the customers and clients.

Dhanmondi branch is the principle branch of the JBL. There are 43 employees working in
the JBL of Dhanmondi branch, Mr. Md. Abdur Rahim, is the head of the branch. They
follows on narrow span of management, as a result of which the management can put directly
care on all the department.

1.1 Background of the Internship program

This study is basically an internship study. This report is done as a part of the Internship
program in Jamuna Bank LTD, Dhanmondi Branch, for the academic requirement of
Department of Business Administration. After getting approved from both the Internal and
External supervisor, the researcher conducted the study on “PERFORMANCE & EVALUATION OF

JAMUNA BANK’S SPECIAL PRODUCT IN DHANMONDI BRANCH: “EID FESTIVAL LOAN”.

1.2 Significance/ justification

An effort to reach in such comparing level to express the best possible picture of the
Performance of ‘Eid Festival Loan’ in Dhanmondi Branch. The population who has got this
loan under this branch has studied. Present trends of quick changing product offers to the
customers in the banking business means a lot to organizations especially the well known
organizations like Jamuna Bank. It is very relative to the organization to know the current
study upon the products offered to the customers and evaluating its performance both from

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the side of Organization and Customers. The organization can realize and take possible
decisions for the weak issues those are hindering the product’s efficiency.

1.3 Scope of the report

As I was working in the Jamuna Bank, Dhanmondi Branch, I got the opportunity to learn
different part of banking system. The supervisor divided the whole banking system in three
parts; as a result I got the opportunity to work in all the three divisions (General Banking
Division, Credit Division, and Foreign Exchange Division). As my main concern was to
measure performance & evaluation of “Eid Festival loan” of Jamuna Bank that’s why I spend
much time in credit division. As I was attached to the credit division, I had to deal with so
many customers who come to take loan or already took loan from JBL. Moreover, for
gathering information about “EID FESTIVAL LOAN” I conducted customer survey on them
who have already taken the Eid Festival loan from this Branch. Finally this report covers the
performance of Eid Festival loan in JBL, Dhanmondi Branch. From the survey I had the
opportunity to gather information about-

 Who and why people look for Eid Festival Loan.

 The customers who mainly look for this credit scheme, their income level,
occupation, age group, habitants etc.
 What are the benefits of those customers look in Eid Festival Loan.
 Habit and life style of the customers, who take the loan.
 From where they become acquainted about the credit scheme.
 The reason of becoming defaulter.
 Measurement of their overall satisfaction level about this loan.

1.4 Objectives

1.4.1 Broad Objective:

“To evaluate the performance of a special product “Eid Festival Loan” of Jamuna
Bank Dhanmondi Branch”

1.4.2 Major Objective:

The major objectives area-

 To measure the internal performance of JBL, Dhanmondi Branch regarding Eid

Festival Loan.
 To compare the performance of Eid Festival Loan with other loans.

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  To assess the level of satisfaction of customers regarding this special product.
 To understand the different Loan & Investment of Jamuna Bank Limited (JBL)
 To reveal the modes of Loan & Investment of JBL.
 To analyze the different Deposit Accounts/schemes of JBL
 To understand the different Deposit Accounts/schemes of Jamuna Bank Limited
(JBL)

The report will conclude stating the recommendations for the issues which hinders the
performance of the product.

1.5 Methodology

1.5.1 Type of research:

The research type is descriptive nature.

1.5.2 Sources of data:

1.5.2.1 Primary data:

Primary data were collected through using a structured Questionnaire. A total of 36 users of
the loans were interviewed through the questionnaire to collect the relevant information for
the study.

1.5.2.2 Secondary data:

Secondary data for the information regarding Jamuna Bank, its history, information related to
the JBL special product ‘Eid Festival Loan’, and other loans disbursed on the month of
September-December 2006, were gathered from different data sources. For that reason
different reports from online, electronic media, hard copy of data sources are gathered and
analyzed.

Secondary data sources are:

 JBL’s Annual report of 2006.

 Monthly, quarterly and half yearly Statements of different loans from Dhanmondi
Branch office.
 The Booklet of Jamuna Bank LTD.
 Filtered data table of disbursed ‘Eid Festival Loan’.
 Website of JBL www.jamunabankbd.com.

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1.5.3 Data collection procedure

1.5.3.2 Primary:

I collected primary data from questionnaire survey & group discussion with Jamuna Bank’s
employee. At first I collect the information through questionnaire from the respondent.

1.5.3.1 Secondary:

I collected secondary data from their Annual Report Visit the JBL by using their website
“www.jamunabankbd.com ”Periodicals Published by the Bangladesh Bank & Jamuna
Bank, different publications regarding Banking functions, operation, and transactions policies
& booklet of Eid Festival Loan.

1.5.4 Questionnaire Design

Research administrated type of well structured questionnaire was used for primary data
collection. Both open ended & close-ended questions were included. There were 16
questions for the customer. Average time for conducting individual questionnaire survey was
18 minutes. Questionnaire design was such a way thus respondent does not become boring.

The questionnaire is of three pages containing sixteen questions in a logical order. No

demographic information section is in here, because JBL has its own customer data base. In
the first portion of the questionnaire, the questions were related to the Loan and its features.
To bring out the customers responses regarding the features, both closed and open ended
questions were there (Question no 1-7). In the next stage customers were asked regarding
their satisfaction level (Question no 8-10). Only one question about the level of satisfaction
for ‘Interest rate’ was in next step of the questions (Question no-11). Next two questions were
used to compare this special loan offer with other loan products of JBL (Question no 12-13).
Another two questions were used for comparing ‘Eid Festival Loan’ with other bank’s loans;
the customers have taken (Question no 14-15). And the last one is to get the open opinion of
the customers about the product ‘Eid Festival Loan’ (Question no-16).

1.5.5 Sampling Plan

1.5.5.1 Population:

The target population for the research was all the customers of JBL Dhanmondi Branch to
whom the ‘Eid Festival Loan’ has been disbursed.

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1.5.5.2 Sample element:

Sample element was who took the Eid Festival loan before.

1.5.5.3 Sample frame:

Sample frame is the list of elements from where sample is actually drawn. I cannot include
any sample frame because that was directory of JBL customer’s information.

1.5.5.4 Sampling method:

Sampling procedure was convenience sampling because I collect sample who got the Eid
Festival loan prior.

1.5.5.5 Sample Size:

Sample size was thirty six for the survey.

1.5.6 Data analysis and reporting:

Different types of statistical tools and computer software I used for analyzing and reporting,
such as – Microsoft Excel, Microsoft Word.

1.6 limitations

In doing this report I have faced some limitations what I can’t ignore. Some of those
limitations are:

 Lack of Financial support to reach the customers in their office or residence.

 Bankers don’t want to disclose all the information which was needed for me.

 Load at the work place was also a barrier to prepare this report. They always remain
busy with their tight schedule.

 Although the officers of the Jamuna Bank Limited have been very helpful, they didn’t
have enough time to provide, as they are very busy with their assigned works. So, in
some cases, observation was needed.

 Due to lack of experience, there may have been faults in the report through maximum
efforts have been given to avoid any kind of mistake.

 Large-scale research was not possible due to time constraints.

 Another limitation was that the data gathered could not be verified for accuracy.

 The lack of intellectual thought and analytical ability to make it a perfect one.

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  The research output could have greater influence over entire JBL if it could be done
for all the branches.

2.1 Background

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act,
1994 with its Head Office at Printers Building (2nd & 8th Floor), 5, Rajuk Avenue, Dhaka-
1000. The Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital
and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up
Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00
million as on June 30, 2005. Currently the Bank has 35 (Thirty Five) branches 14 in Dhaka, 6
in Chittagong, 2 in Gazipur, 3 in Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in
Shirajganj, 1 in Rajshahi and 1 in Narayanganj (including Nine Rural Branches).

The Bank undertakes all types of Banking transactions to support the development of trade
and commerce of the country. JBL's services are also available for the entrepreneurs to set up
new ventures and BMRE of industrial units.

Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was
established by a group of winning local entrepreneurs conceiving an idea of creating a model
banking institution with different outlook to offer the valued customers, a comprehensive
range of financial services and innovative products for sustainable mutual growth and
prosperity. The sponsors are reputed personalities in the filed of trade, commerce and
industries.

The Bank is being managed and operated by a group of highly educated and professional
team with diversified experience in finance and banking. The Management of the bank
constantly focuses on understanding and anticipating customers needs. The scenario of
banking business is changing day by day, so the bank's responsibility is to device strategy and
new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved
tremendous progress within only two years. The bank has already ranked as one of the quality
service providers & is known for its reputation.

Jamuna Bank offers different types of Corporate and Personal Banking Services involving all
segments of the society within the purview of rules and regulations laid down by the Central
Bank and other regulatory authorities.

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2.2 Vision

To become a leading banking institution and to play a pivotal role in the development of the
country.

2.3 Mission

The Bank is committed to satisfying diverse needs of its customers through an array of
products at a competitive price by using appropriate technology and providing timely service
so that a sustainable growth, reasonable return and contribution to the development of the
country can be ensured with a motivated and professional work-force.

2.4 Goals

 To earn and maintain CAMEL Rating 'Strong'.

 To establish relationship banking and improve service quality through development
of Strategic Marketing Plans.
 To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.
 To introduce fully automated systems through integration of information technology.
 To ensure an adequate rate of return on investment.
 To keep risk position at an acceptable range (including any off balance sheet risk).
 To maintain adequate liquidity to meet maturing obligations and commitments.
 To maintain a healthy growth of business with desired image.
 To maintain adequate control systems and transparency in procedures.
 To develop and retain a quality work-force through an effective human Resources
Management System.
 To ensure optimum utilization of all available resources.
 To pursue an effective system of management by ensuring compliance to ethical
norms, transparency and accountability at all levels.

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2.5 Organogram of JBL

Managing Director (MD)

Additional Managing Director (AMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Senior Executive Officer (SEO)

Executive officer (EO)

Principal Officer (PO)

Senior officer (SO)

Management Trainee officer (MTO)

Junior officer (JO)

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2.6 7ps of Jamuna Bank LTD.

Product:

Deposit Product Loan Product

 `Lakpoti deposit Scheme (LDS)  Agriculture Loan

 Kotopoti Deposit Scheme KDS)  Term Loan to Large & Medium Scale

 Education Saving Scheme (ESS) Industry

 Marriage Deposit Scheme (MDS)  Term Loan to Small Industry

 Monthly Benefit Scheme (MBS)  Working capital to Industry

 Millionaire Deposit Scheme  Export

(MDS)  Trade/Commercial Financing
 Double/Tripple Growth Deposit  Housing
Scheme (DGDS/TGDS) Loan
 Monthly Savings Scheme (MSS)  Consumer

 Others deposit products like Loan

savings. Current. Short term (STD)  Credit to Non Bank Financial Institution
etc.  Other Loan.

Price:

JBL is trying hard to minimize the cost of taking services because everyone wants best
service in a reliable price. Jamuna bank offers very reasonable price to its customers. For this
reason there are huge number of people are very loyal to them. There are plenty of services
provided by JBL and there are dynamic price list for different service.

Deposit & Loan products price list are given below:

Deposit product price list:

Sl# Types of Deposits Interest Rates

1 STD (Short Term Deposit) 7.00%
2 Savings Deposit: Urban/Rural 6%
3 Savings Deposit: Non Chequing & No withdrawal for 6(six) months 6%*
4 Savings Deposit: Non Chequing & No withdrawal for 1(one) year & 8.00%*
above
5 FDR for 1(One) month and above 8%
6 FDR for 3(Three) months and above 11.25%

7 FDR for 6(Six) months and above 11.50%

8 FDR for 1(one) year and above 11.75%
Note: The rate of interest offered earlier on FDR (s) shall remain unchanged till their next
9
maturity

Loan product’s price list:

Sl # Type of Landings Interest Rate

1. Agriculture Loan 10% (Mid Rate)
2. Term Loan to Large & Medium Scale 14.00% (Mid Rate)
Industry
3. Term Loan to Small Industry 13.50% (Mid Rate)
4. Working Capital to 14.00% (Mid Rate)
Industry
5. Export 7.00%
6. Trade/Commercial 14.50% (Mid Rate)
Financing
7. Housing Loan 14.50% (Mid Rate)
8. Consumer Loan 15.00% (Mid Rate)
9. Credit to Non Bank Financial Institution 13.00%

10. Others 15.00% (Mid Rate)

Place:

Currently the Bank has 35 (Thirty Five) branches all over the Bangladesh, 14 in Dhaka, 6 in
Chittagong, 2 in Gazipur, 3 in Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in
Shirajganj, 1 in Rajshahi and 1 in Narayanganj (including Nine Rural Branches). So they are
very conscious about delivering service near to customer.

Promotion:

Jamuna Bank’s promotional activity is so light then other commercial Bank. Company
management is not enough concern about their promotional activity. Some promotional tool
of JBL’s are given below:

Sales promotion:

 Premiums & gifts

 Fairs & trade shows
 Rebates
 Low-interest financing
 Trade in allowance

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Publicity/Public relations :

 Press kits
 Seminars
 Annual reports
 Charitable donations
 Company magazine
 Publications
 Brochure’s & lift let of different products.

Interactive Marketing:

 Internet marketing

People:

People is the main element for providing service. Jamuna Bank’s Limited (JBL’s) has
a lot of energetic & dynamic employee in 35 branches. There are 43 employee in
Dhanmondi Branch.

Process:

Jamuna Bank creates and deliver product elements to customers require the design and
implementation by effective process. A process is the method and sequence of actions in the
service performance. Jamuna Bank designs its process in such a way that lead to fast,
dynamic and very effective service delivery and result in satisfied customers. They also use
modern technology for provide best service to customer.

Physical Evidence:

Jamuna Bank manages its physical evidence very carefully, as it can have a profound impact
on customers’ impression. They have:

 Well decorated office space.

 Prayer room for male & female.
 Necessary furniture & electric equipment.
 Seating arrangement for customers
 Car parking facility
 Wall paper paint.
 Deposit & withdrawal counter.
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2.7 Company SWOT Analysis

Strength

 Strong corporate Identity

 Wide range of Financial Product Offerings
 Local Knowledge with Global Capability
 Strong employee bonding and belongingness
 Young Enthusiastic Workforce
 Free Exchange of Communication
 MBO
 Strong Operating and Branding Activities
 Achievement of High Customer Confidence
 Value addition through Acquisition
 More Experienced & Managerial Knowledge

Weakness

 Too Many Contract Workers

 Low Remuneration Package for Entry Level Officers
 Concentration on Varied Financial Products
 Very Little Active Account Being Maintained Till the End
 No Transparency Regarding the Decisions Taken By Upper Management
 Loss of Valuable Market Information due to Top-Down Communication Method

Opportunity

 High Demand of Housing Loans

 Rules and Regulations Becoming Easy and Relaxed

 Growing Awareness among People toward Quality of Service and Technology

 Growing Customer Consciousness about The Risk Management Capability of The Banks

Threat

 Upcoming Banks
 Default Culture
 Low Foreign Exchange Reserves in The Country With Falling Exports
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 Stricter Regulations against the Foreign Banks
 Standardized Product Offerings from The New Local Private Banks
2.8 Strategies

 To raise capital up to Tk. 1000.00 million by March 2006.

 To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund
 To strive for customer satisfaction through quality control and delivery of timely
services
 To identify customers' credit and other banking needs and monitor their perception
towards our performance in meeting those requirements.
 To review and update policies, procedures and practices to enhance the ability to
extend better service to customers.
 To train and develop all employees and provide them adequate resources so that
customers' needs can be reasonably addressed.
 To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion
 To cultivate a working environment that fosters positive motivation for improved
performance
 To diversify portfolio both in the retail and wholesale market
 To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers.

2.9 Corporate Moto

“YOUR PARTNER FOR GROWTH”

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14
2.10 Different type account opening and the procedure:

In account opening section different types of accounts are opened as per the need of the
clients. It also issues cheques books and deposit book as the opening of account is completed.
Except Fixed Deposit Receipt (FDR) all other deposit accounts are opened in here such as,
Saving Account (SB), Current Account (CD), Foreign Currency Account (FC), Loan Account
(SOD), Short Term Deposit (STD) and Deposit Pension Scheme (DPS). Under DPS there are
some schemes, which are:

 Lakpoti deposit Scheme (LDS)

 Kotopoti Deposit Scheme KDS)
 Education Saving Scheme (ESS)
 Marriage Deposit Scheme (MDS)
 Monthly Benefit Scheme (MBS)
 Millionaire Deposit Scheme (MDS)
 Double/Tripple Growth Deposit Scheme (DGDS/TGDS)
 Monthly Savings Scheme (MSS)

This department also deals with any new clients visiting the Bank for inquiry. In this
department I first got familiarized with all types of account opening process and slowly
started opening accounts for the clients. This department also takes care of the clearing of the
cheques.

2.11 Documents Common to All for Opening an Account:

A/c opening form duly filled in and signed. Proper introduction is a must for opening an
account. Signature of the introducer must be verified before opening of the a/c.

Signature Card (2 copies) - duly filled in and introduced.

Photographs (2 copies for each individual) duly attested by the introducer.

2.11.1 Individual: CD/STD/Savings Account:

a) A/c opening Form (single copy) - duly filled in and introduced.

b) Signature Card - duly filled in and introduced.
c) Photographs (2 copies for each individual) duly attested by the introducer.
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Proprietorship: CD/STD Account :

A/c opening Form (single copy) - duly filled in, signed with seal and introduced.
Signature Card - duly filled in and introduced.
Agreement/Proprietorship.
Trade License.
Mandate Agreement Form (Nominee Form)

Partnership: CD/STD Account :

a) Partnership Agreement Form

b) Trade License.
c) Partnership Deed.
d) Resolution as to operation of the account.

Private Limited Company: Current/STD Account :

a) Corporate Agreement Form

b) Memorandum and Articles of Association
Duly attested by the Managing Director/Company Secretary.
c) Certificate of Incorporation
d) Resolution as to operation of the account.
e) List of Directors, if needed.

Public Iimited Company: Current/STD Account :

a) Same as Private Ltd. co. &

Certificate of Commencement of business.

Association Club/Societies: CD/STD/SB Account :

Up-to-date list of Office Bearers.

Certified copy of resolution for opening and operation of a/c.
Certified copy of Bye-Laws and regulations/constitution.

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Co-operative society:
a) Copy of Bye-Law duly certified by the co-operative officer.
Up-to-date list of office bearers.
Resolution of the Executive Committee as regards to the a/c.
Certified copy of certificate of registration issued by Registrar,

Saving Account
Saving account meets the need of those individual who have limited income and who want to
save money for future consumption. Certain amount of interest is paid on the deposit and the
person must maintain a minimum balance of deposit at all time for smooth running of his/her
account. For Jamuna Bank a minimum balance of Taka 1,000 is required and the rate of
interest paid on such account is eight percent (8%) per annum. The interest is charged on half
yearly basis. The account holder cannot issue more than two cheques in a week, if he does so,
cheque will be encased but he cannot claim interest for that month during which the cheques
are issued. Seven days notice is required to withdraw Tk.20, 000 or above. The maximum
interest-bearing amount allowed under this account is TK. 50,00,000. Also an introducer is
needed to open an account with Jamuna Bank, an introducer could be anyone having Saving
or Current Account with the same Branch of the Jamuna Bank. In case of a client not having
an introducer a copy of his/her passport his required to open an account. The bank has full
right to refuse or close any account without assigning any reason thereof.

Current Account
A Current Account is an account on which cheques are drawn and to which credits are paid,
as opposed to a deposit or saving accounts on which cheques are seldom drawn. In Jamuna
Bank Ltd. for opening of a Current accounts minimum deposit of Tk. 10,000/= is required and
an amount of Tk.5, 000/- is to be maintained in the account as minimum balance. It is not an
interest bearing account and very popular among the business people. Current Account holder
can draw or deposit money as much as he/she requires. Both individual and firm can open
Current Account. Usually the Firms (Proprietorship, Limited Companies, partnership, Clubs
and Societies) use it. An introducer is needed to introduce the new client & the introducer
must have a Current account with the same branch of the bank.

Short Term Deposit Account/ STD Account

For STD account a minimum deposit of Tk. 10,000 is required and an amount of Tk.5, 000 is
to be maintained in the account as minimum balance. This is an interest bearing account and
the rate of interest is 5.5% per annum. In STD account interest is charged on yearly basis. The
17
main difference between Current account and STD account is that interest can be earned
through STD account, which is not possible in Current account. But other things remain
similar to the Current account. An introducer is needed to introduce the new client & the
introducer must have a Current account or STD account with the same branch of the bank.
Personal STD account is very rare. It is mainly opened for Companies such as Insurance
Company, Leasing Company and so on. But if the client is very important to the bank then
personal STD account can be opened for him and this is considered as special case.

Types of Saving Schemes Accounts

There are three types of saving Schemes accounts Jamuna Bank offer for its clientele. These
accounts are opened for a certain period of time with a fixed monthly installment, payable
within the first 10 days of the month or a fine is charged against the depositor (account). The
applicant has to be 18 years of age to have an account under all three accounts. The account
will automatically be closed if account holder-
Default to pay 3 installments before the completion of 1st year,
Default to pay 5 installments before the completion of 5th year,
Default to pay 7 installments before the completion of 10th year.

Clearing House
Clearinghouse is a desk of general banking department where a bank collects a certain
amount of money by check on behalf of its client. Under such circumstances, clearinghouse
can be called as a collection house of a branch. Everyday representatives of all banks
operating in Bangladesh sit together in the central bank everyday and there they exchange all
out and incoming cheques for their own banks. In Bangladesh Bank, JBL has its own desk
like all other banks. There the responsible representative of the bank receives cheques of other
banks to withdraw money from JBL. Again, JBL own cheques will also be placed to other
banks desk to verify whether the client has adequate account balance with their bank. After
that, the representative of each bank collects cheques from the individual desk contacts
his/her branch internally.
Process
So, the process of clearinghouse can be divided into two sections:

1. Outward
2. Inward

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Outward
For Outward Clearing Cheques, the bearer of the cheque has to have an account in JBL
Gulshan Branch to credit the same. After submission of the cheque, the in-charge of this
department gives an entry of the information of the cheque (name of the bank and branch,
cheque number and amount) in the Outward Clearing Register. At the end of the day, the in-
charge prepares clearing slip against the cheque in a schedule. And, finally these cheques are
sent to the Principal Branch (PB). PB sends it to Bangladesh Bank Clearing House, and then
the clearinghouse again sends it to the respective banks for honoring (account holder who
issued the cheque must have the available balance to debit the account, if required balance is
not available then the cheque is dishonored. If it is honored then the proceeds are credited to
the depositor client’s account otherwise the instrument comes back & then it is returned to the
depositor client.

Bank is going to collect money one behalf of its client by mode of cheque. Usually it takes
two, three days to do it. When the client deposits cheque in the bank, firstly the employee
should register manually. Then, the employee must check six things:

Appropriate date of the cheque (only six month forward dated cheque is acceptable),
Right branch name, crossing,
Matching between number and in words,
Endorsement seal,
Clearing seal if everything is no mistake.
Then the employee records the account like:
Dr. Clearing house
Cr. Clients account

After this, Computer entry of today’s cheque must be done, and making sure that
computerized amount is equal to manual one. Finally, the employee must save it in a floppy
and send it to Head Office by a messenger. All must be done by 3: 30 pm. the following day
morning, clearing house officer must communicate with clearing house officer in head office
to know the number of cheque honored. Because it is possible to get a dishonored, which
means there is no enough balance to claim the said amount on the cheque. By this time,
bank is aware of honored and dishonored cheque. For honored cheques, accounting record is
like:
Dr. H/O general;
Cr. Clearing house

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This is a transaction taking place between Head office and branch on book. Inter-bank
advice must be issued. It takes time to mail IBCA. So, the responsible employee of the
branch only makes dummy voucher at this moment, later it will be replaced by real IBCA.
For dishonored amounts, bank fails to collect money for its client, amount must be reversed
:
Dr. Client ;
Cr. Clearing house.
This is a transaction taking place Head office and branch on book. Inter-bank advice must
be issued. It takes time to mail IBCA thus branch only makes dummy voucher at this
moment, later it will be replaced by real IBCA. For dishonored amounts, bank fails to
collect money for its client, amount must be reversed :
Dr. Client:
Cr. Clearing house
Inward :
Inward Clearing is the opposite of outward clearing. Here cheques of JBL, Gulshan Branch
are submitted to the other banks and come back to the JBL Gulshan branch, through clearing
house for collection. These cheques are directly sent to the computer section for checking the
account balance. If available balance is there in the account then the cheque is honored by
debiting the cheque amount to the respective account. But in case of dishonoring a cheque the
authorized officer (computer operator) immediately informs it to the head of General
Banking. Finally, clearing in–charge gives an entry of the information of the cheque (name of
the bank and branch, cheque number and amount) in Inward Clearing Register.

If there are any cheques, which need to be cleared from the other Branch of Jamuna Bank
then the bank do not go through the clearinghouse. They do it through IBC (Inward Bill for
Collection) and OBC (Outward Bill for Collection).

Other banks are going to collect money from us on behalf of their client. Usually gets cheques
from mail messengers from Principal office, then officer in clearing house register again six
points must be examined carefully, then he must check with IT department to be sure
whether balance is available in each clients account. If everything is ok, then the cheque is
honored, otherwise, cheque must be returned by mail with returned memo. And related
accounting record must be done like.
Dr. Cheque
Cr. Head Office general.
Clearing house also deals with Demand Draft, which means client deposits a cheque of
another district. As there is not inside Dhaka, so branch issues IBCA. IBCA stands for Inter-
20
Bank Credit Advice, this is an advice to show other party that your account has been credited
from here. IBDA implies Inter-Bank Debit Advice. Again this is an advice to debit a certain
amount of money on behalf of clients. In addition, all incoming letters must be firstly
registered at clearinghouse and then distributed accordingly.

Cash Division
Responsibility of a cashier is receive or payment of cash. There are two tellers, one cashier-
in-charge in this department. One teller is in charge of receiving and payment of bank daily
transaction, the other one is dealing with only Grameenphone bill payment.
The work of cash division is very important and the area is highly prohibited. For this
reason, officers in cash division also gets risk premium.
Depositors use the prescribed deposit slip supplied by the bank to deposit cash, (cheque,
draft, pay order is with clearing house desk). After filling in the slip by depositors, the teller
must check the following things:

The slip has been properly filled-up.

The title of the account and its number is matched
The amount in figure and in words is same
Instrument signed by the depositor
Date of the instrument
The teller receives cash only if all above things are satisfied. For payment, the banker must be
careful of the following points before honoring a cheque:

Whether the cheque is drawn on his /her branch

Whether the cheque is post dated. A teller must not pay any post- dated cheque
Whether the tenor of the cheque is altered.
The officer must compare the signature of the cheque with the signature on the specimen
signature card.
Verification of the endorsement

If the cheque has no mistakes and it is payable, the cashier-in-charge will sign the cheque
affixing signature verification seal and the cheque must be cancelled by striking it with pen.
By this time, the teller can hand over amount of cash to the client.
According to experiences and estimations, cashier-in-charge estimated needed cash for one
day’s transaction. If there is shortage of cash anytime in a day, he will inform principal
branch for help by issuing IBCA; if there is excess of cash, branch will lend to principal
branch, in exchange branch will get interest income. But the limit is 50 lac, if above 50 lac,
21
there is no insurance. However, in KRN, on average daily cash requirement is 20 lac. The
rule of bank in withdrawing big amount Taka is that previous informing must be required.
For example, for the case of withdrawal of Tk 50,000, cash division can supply only Tk,
3,000 amount only at this moment, so Tk. 20,000 is shortage, branch can borrow from
principal branch by issuing IBCA, client can take this as token to principal branch to get
the rest amount.

Fixed Deposit Receipt Account/ FDR Account

The desired amount of fund is kept under FDR for particular period of time as per the
preference of the depositor. Different level of interest rate prevails according to the duration
& quantity of fund. The table below shows the variety of rates for different period of time for
which the FDR is done. No doubt that the interest rate given on FDR is higher than the rates
given on any other deposits.
On issuing number of FDR’s I have learned that Account opening for FDR is quite simple, no
such documents are required and it comparatively takes less time. The interest is charged on
quarterly basis. 10% tax and government excite duty is cut on every deposit. In Jamuna Bank
when the FDR matures it automatically renews, having characteristics same as before.

Duration 50,00,000 50,00,000- 1,00,00,000 and above

1000,00,000
30 Days 11.50% 11.75% 12.00%
60 Days 11.75% 12.00% 12.25%
90 Days 12.50% 12.75% 13.00%
180 Days 12.75% 13.00% 13.25%
1 year 13.00% 13.25% 13.50%
2 years 13.00% 13.25% 13.50%
3 years 13.00% 13.50% 14.00%
Different Rates on FDR Depending on Time Period.

Source: Printed Document

Though the interest rate are fixed depending upon the amount and duration for which the FDR
is done sometime the rates are set on the basis of bargain that takes place between the parties
(bank and the client). If the party seems important to the Bank it usually gives higher interest
rate to maintain sound & lasting relationship.

Pay Order

22
Pay order is a note (bearing a title of a favoring person/ organization) issued as per the order
of a client. In Jamuna Gulshan Branch anybody can order to issue a Pay order. There is no
need for a person to have an account with JBL. Different amount of Commission is charged
for the issuance of a PO depending on the amount for which it is being released.

At first a Pay Order or P.O. form has to be filled up duly and a commission voucher has to be
written (Pay order commission rates are given below). I had to issue pay orders and write
vouchers for pay order commission, maintain a Pay Order Register Book where information
such as (date, pay order number, applicant’s name, name of the beneficiary, commission
amount, total amount, date of payment, and signature of the authorized officer etc.) had to be
logged in. A Pay Order Block is used here to issue pay order, which is almost similar to a
cheque. Here my task was to list and file daily Pay Orders and balance the Pay Orders at the
month end. Payment Order is an instrument issued by a bank with an undertaking to pay the
beneficiary on behalf of the client. It is also known as Manager’s Cheque and more reliable
than cheques. The issuing branch is the paying branch. Pay order is usually issued within the
clearing area.

PO against Cash:
Fill up the Pay Order application form in Duplicate (First copy treated as CR voucher: xxxxxx
and Second copy for the use of customer) by the applicant duly signed by him.
Fill up the Commission part of the application form meant for Bank's use and prepare the
following single CR voucher on the basis of commission amount and arrange to deposit both
the vouchers over the counter.

Issuance of Pay Order :

Cash department on receipt of cash will deliver the above two vouchers to the concerned
officer to -
To make entry in the P.O. Issue Register duly authenticated and will record Register serial
number on the face of the Application Form.
Issue Pay Order and write the Register serial number after the block series number on it.
Ensure that Pay Orders are crossed "A/c Payee" and get it signed by two authorised
signatories: manager operation and the credit in charge or foreign desk in charge.
Receive applicant's signature on the counter-foil of Pay Order and handover the Pay Order to
the purchaser.

Register:
23
Pay Order Register
Balance Book - Balancing on daily, weekly & monthly.

Demand Draft (D.D.)

Demand Draft is also same as Pay Order but it is for outside Dhaka. At first a Demand Draft
or D.D. form has to be filled up duly & a commission voucher and a postage/cable charge
voucher have to be written. After all formalities the D.D. is recorded in a D.D. issuing register
in due manner and simultaneously an IBCA is to be written. Here also cash is debited and
H.O. general account credited in the originating branch and in the responding branch H.O.
general account is debited and the beneficiary’s account credited. A Demand Draft Block is
used here to issue demand draft, which is almost similar to a cheque. The D.D. Block is the
only block, which is not returned to the originating branch once issued i.e. it remains with the
branch upon which it is drawn. As said earlier I had no opportunity to issue DD.

IT department
Day starts from IT department. Every morning IT department must take print of loan listing,
exceptional loan listing of previous day, in addition income statement and balance sheet of the
branch for the previous day. Most of the reports must be kept in two or three copies. First of
all, when IT officer comes in the morning, he must initialize the computer, meaning he/she
must delete previous day’s transactions, and then he/she is able to start current day’s
transactions. In other words, after initialization in the morning, computer goes forward as date
goes, there is no backward. Except three hard copies of the major reports, IT department must
keep a soft copy for the any working days transactions, called backup. There is only one
employee and two computers with PcBank 2000 software in IT department of KRN. One
computer is server and responsible of recording transactions of other branch but taking place
in KRN; other computer is used mainly for KRN own transactions. The IT officer also sits in
the front desk as the clients pressure has increased a lot.

Accounting department
This is an internal division of the bank. It does not actually deal with clients directly.
Responsibility is to record transactions, mainly expenses, prepare reports.

Functions of Accounts Department/FCD Department:

Sorting of vouchers
Audit of daily transactions.

24
Preparation of Extracts (daily) to send H.O.
Preparation of Thursday position.
Preparation of Daily Statement of Affairs.
Preparation of Consolidated Statement of Condition - Profit & Loss (Monthly)
Preparation of Voucher for depreciation.
SBS-1 (Statement of Bank Statistics) To head office
SBS-2 (Client) To head office

Periodic reports prepared by accounting department must be sent to head office as follows:
Daily: Treasury position (Dealing room); Statement of Affairs, which shown all the assets and
liability of the branch as per general ledger and subsidiary ledger. Checking whether all the
vouchers of previous day are correctly passed, if otherwise, making correction, recording the
voucher in the book and packing them according to the debit voucher and credit voucher
(Auditing) ; Making payment of all the expenses of the branch, recording inter branch fund
transfer and providing accounting treatment in these regards.

Weekly: Thursdays position, which is sent to the head office and consists of the break up of
sector wise deposit, loan etc.
Monthly: Monthly Salary statement of the employees; provident fund (H.O); Amortization &
Depreciation statement; monthly expenses (rent, phone, internet) statement. Closing
statement, which shows the position of the branch in one month. Statement of comparison of
budget. Statement of 10% tax ; VAT on bank services; CSC (Consolidated Statement of
Condition) ; sundry position; SBS-1 (Statement of Bank Statistics) ; SBS-2 (Client).
Quarterly: Quarterly statement comprising of financial statements
Officers in accounts are also in charge of implementing human resource policies from head
office and maintaining work performance record.

Credit Department
Credit department is the foremost important part for any bank as it makes possible financing
of commercial, industrial and personal activities of the country. By investing the fund to
maximize the wealth of the country, bank can also add value to its own. In addition, the main
job of credit department of a branch is to sanction, disburse and monitor any sanctioned loan
and advances. Branch credit department needs to perform a lending risk analysis; both
qualitative and quantitative is used in this method. In this analysis, branch authority can able
to know about the risk level of any client. The different risk like business risk, supply risk,
company risk and company’s position risk, legal risk can be measured through LRA. Credits

25
in charge have good negotiation skills as well as have cross selling ability which is very much
beneficial to the branch.
Loan Categories

There are both funded and non-funded credit facilities are available to the branch. Funded
credit facilities include: Time loan, Term Loan, Overdraft, Trust Receipt, and Consumer
Credit Scheme. Details introduction of the major funded credit facilities are as follows:

Time Loan:
Under time loan facilities, clients can enjoy the credit facilities for one year. Revolving basis
on time loan must be applied if the client ask for it. Securities against time loan are:

a) Demand Promissory Note.

Letter of Arrangement.
Letter of Continuity.
Letter of Revival.
Letter of Pledge/Hypothecation with Supplementary Agreement.
Letter of Disclaimer from the owner of the go down in case of rented go down, to be vetted
by the Legal Retainer of the Bank.
Insurance Policy covering risks with Bank Mortgage clause for a sum of 10% above the
sanctioned limit.
Subordination Agreement (where necessary).
Notarized Power of Attorney to sell the pledged/hypothecated goods to be vetted by the Legal
Retainer of the Bank.

Term Loan:
It is quite similar to time loan. Here clients can enjoy the credit facilities for more then one
year but less then five years in the branch. It requires detail proposal analysis and project
appraisal.

26
Overdraft:
Over draft is against acceptance securities. It is use to be revolving basis, means clients can
withdraw time to time below the limits without pre-noticing. It is done though his current
account. Overdraft facilities is used to be pledge of raw materials, finished goods. It can also
be against hypothecation of goods. Business personals use this facilities for their daily day to
day business.

Consumer Credit Scheme:

The objective of this loan is to provide essential Household durables to the fixed income
group (Service Holders) and other eligible borrowers under the scheme. The abbreviated
name of the scheme will be “conserve’.

Foreign Exchange Department

Though KRN is a small branch, but it has the authorization to open L/C directly from the
branch after the approval from the head office. When the client approaches the branch for
opening a L/C, in case of 100% cash backup, the L/C is opened immediately. However,
normally the client prefers to have 25%-40% margin. For loyal clients, the margin can be
flexible. Officer in foreign exchange desk will ask necessary documentations required by
Bangladesh Bank. The officer makes proposal as per client’s requirement, then he precedes it
to the foreign exchange department of head office. Branch has to operate under the guidance
of head office. Officers in the branch will not open the L/C until he gets approval letter from
head office. SWIFT is usually used to open a L/C. For import, the branch used the Dan and
Broad Sheet risk analysis of the imported company, which is reliable and recognized.

Letter of Credit (L/C)

A Letter of Credit is a document through which a Bank undertakes to pay a party (the
beneficiary) named in the documents a sum of money, provided certain term described in the
Letter of Credit are met. Generally this money will be paid when the beneficiary submits
proof, usually in the form of documents of having met the conditions.

Types of Letters of credit:

Documentary credits according to the degree of security provided –

(a) Revocable L/C:

A revocable credit can be modified or cancelled by the issuing bank at any time even after
shipment provided no payment has been made with or without notice to the seller. A credit is
27
taken to be revocable if it does not expressly state that it has been irrevocably opened. Since
this type of letter of credit can be cancelled at any time, is very risky to the seller.

(b) Irrevocable, Unconfirmed Credit:

An irrevocable credit constitutes a definite undertaking of the issuing bank, provided that the
terms and conditions of the credit are complied with. The irrevocable, unconfirmed credit is a
commonly used type of documentary credit. Once this commitment has been entered into, the
bank cannot decline responsibility without the agreement of the beneficiary as in the case of a
revocable credit.

(c) Irrevocable, Confirmed Credit:

An irrevocable credit can also be confirmed. Whenever the Advising Bank/Issuing Bank’s
Agent adds its own confirmation to the credit is called a Confirmed Irrevocable Letter of
Credit. Otherwise, it is to be treated as unconfirmed L/C. Here the beneficiary not only has
the undertaking of the Issuing Bank abroad but also that of a Bank in his own country and is
of value if the Issuing Bank’s standing is doubtful. The confirmed credit offers a very high
degree of security for the exporter.

28
2.10 At A Glance of Jamuna Bank

Name of the organization Jamuna Bank Ltd.

Year of establishment The Bank started its operation from 3rd June 2001.
Head office Printers Building (2nd & 8th Floor), 5, Rajuk Avenue, Dhaka-
1000. The Bank started its operation from 3rd June 2001.
Nature of the organization Private Limited Company.
Capital Asset :20157016559(2006)
Deposit :17284811793(2006)
Advance & loans : 12796630479(2006)
Shareholders Jamuna Bank Limited Group shareholders.
number of employees More than 500 employees.
Number of branches At present there are 35 branches.
Number of ATMs Launched in 5 April at 2005, now the numbers of ATMs are 5 in
whole Bangladesh.
Products All types of products & services are provided.
Chairman
Board of Director
Managing Director
Top management Deputy Managing Director
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
Technology Offers full online banking from branch to branch.

29
2.11 Progress at a glance of JBL

Sl. Particulars
No. 2006 2005 2004
Amount in Taka (except ratio)
1 Paid up capital 1,072,500,000 429,000,000 429,000,000
2 Total Capital 1,701,825,130 916,456,000 674,650,000
3 Capital surplus/deficit 666,269,650 115,540,000 148,506,000
4 Total assets (excluding off 20,157,016,55 16,863,765,21 13,491,523,836
balance sheet items) 9 5
5 Total deposits 17,284,811,79 14,454,129,31 10,450,160,991
3 5
6 Total loans & Advances 12,796,630,47 11,011,834,55 6,722,804,334
9 5
7 Total contingent liabilities & 6,574,379,439 5,445,677,509 2,903,956,390
commitments
8 Advance deposit ratio 74.03% 76.18% 64.33%
9 % of classified loans 5.03% 0.46% 0.04%
against total loans
10 Profit after taxation 253,400,897 199,820,081 155,952,990
11 Amount of Classified loan 643,365,000 51,051,000 2,828,657
12 Provision kept at classified loan 181,466,000 10,206,550 1,037,407
13 Provision surplus/deficit - - -
14 Cost of Fund ( Deposit 12.18% 10.68% 7.84%
cost & overhead cost )
15 Interest earning assets 18,346,059,03 15,551,752,25 12,559,226,490
5 0
16 Non-interest earning assets 1,810,957,524 1,312,012,965 932,297,346
17 Return on assets 1.26% 1.18% 6.91%
18 Return on investment 10.02% 6.20% 1.16%
19 Income from investment 255,662,108 126,303,992 80,439,298
20 Earning per share (Tk.) 31.94 46.58 36.35
21 Net Income per share (Tk.) 23.63 46.58 36.35
22 Price earning ratio (Times) 12.26 - -
23 Net Asset Value (Tk.) 145.68 188.14 141.57

2.12 Financial Performance of JBL Profit:

30
In 2006 Jamuna Bank Limited registered an operating profit of Tk.701.32 million as against
Tk.419.94 million in 2005 recording an excellent growth rate 67.00 percent in the year. After
keeping provision against loans and Advances in line with the instruction of Bangladesh Bank
BCD Circular No.34 of 1989, BCD Circular No.20 of 1994 BCD Circular No.12 of 1995 and
BPRD Circular No.16 of 1998, the profit before tax stood at tk.499.97 million in 2006 against
Tk.363.31 million of 2004 registering a growth rate of 37.62 percent. Provision against Tax
for the year kept for Tk.253.40 million and the net profit stood at Tk.199.82 million (profit
after tax and provision).

600
500
400
Taka in
300
Million profit
200
100
0
2001 2002 2003 2004 2005
Years

Figure01: Profit (source: Official document)

2.13 Opetating Result of JBL

The operating profit of the bank increases from 40 million to 50 million during the year 2002
compared to the previous year. It shows 28.4% increase.

Income, Expenditure & Profit

200
150
Taka in
100
Million
50
nditur
Incom

Expe

0 2003
Profit

2003
e

2004
e

(Source: official document)

2.14 Capital Structure of JBL:

31
Jamuna Bank Limited commenced its operation on June 03, 2001.With an authorized capital
of Tk.1600.00 million ordinary shares of Tk.100 each and the bank started operation with a
sound capital base of Tk.390.00 million. In 2005 the paid-up capital of the bank stood at
tk.429.00 million of 4.29 million ordinary shares of tk.100.00 each and the total shareholders
equity and reserve stood at Tk.916.46 million. After balance sheet date JBL offered initial
Public Offering for 4.29 million ordinary shares with a premium of Tk.20.00 each and after
that the total paid up capital of JBL stood at Tk.858.00 million and the total shareholders
equity and reserve stood at Tk.1530.50 million as on march, 2006.

2.15 An Overview Of LOANS and ADVANCES:

In FY05 after the adverse impact of devastating flood and declining trend in interest rate JBL,
continued to explore its area of credit and was successful to build up a sizeable quantum of
credit, which stood at tk.12796.63 million as on 31.12.2006, registered an overall increase by
16.21 percent over 2005. The total credit as on 31st December 2005 was Tk.11011.83 million.
In compliance to regulatory requirement and to avoid risk of single industry or large loan
concentration and to maintain the Bank’s credit excellence relating to proper risk
management, yield, exposure, tenor, collateral security, proper valuation etc. JBL’s credit
facilities mainly concentrate on Trade Finance, Agriculture and related sector, Project
finance, Wholesale and retail trading, service sector, transport sector, Hospital and Diagnosis
center and syndication financing for large projects, capacity additions in the manufacturing
sector and structured finance to develop infrastructure of the country

Figure03: Loans and Advances

Figure03: Loans and Advances (official documents)

2.16 Investment:

32
The investment portfolio of the Bank as on December 2005 stood at Tk.2037.84 million,
growth rate 75.12 percent over Tk.1163.70 million of December 2004. The investment
portfolio comprises Government Treasury Bills of Tk.630.00 million, Treasury Bonds of
Tk.875.00 million, Prize Bonds, Primary Shares, Zero coupon bonds etc. JBL is one of the
preference shareholders of Aftab Automobiles Ltd, amounting Tk.50.00 million. The bank
also invested in two shares amounting Tk.2.00 of Central Depositary System (CDBL).

Fig4:
investment Source:
Documents of www.jamunabankbd.com

2.17 Import:

The Total import business handled by the bank during 2006 was Tk.15457.80 million
compared to tk12151.90 million in the preceding year registering a growth of 27.20 percent.
A sizeable L/C’s were also opened by the bank in the year under review. The main items were
industrial Raw Materials, Machinery, Consumer Goods, Fabrics, and Accessories etc.

Figure 05: Import (Source: official Documents of Jamuna Bank Ltd.)

2.18 Export:
33
The total export business handled by the Bank stood at Tk.6521.80 million in the year 2005
which was Tk.4790.80 million in the year 2004 showing a growth 36.13 percent. Readymade
Garments (RMG) sector is the highest foreign exchange earner of the bank and for the
Jamuna Bank.

Figure06:Export(Source: Official document)

2.19 Foreign Remittance

Bank Ltd. has a network of 15 branches in Bangladesh.

 Remittance services are available at all branches and foreign remittances may be sent
to any branch by the remitters favoring their beneficiaries.
 Remittances are credited to the account of beneficiaries instantly or within shortest
possible time.
 Jamuna Bank Ltd. has correspondent banking relationship with all major banks
located in almost all the countries/cities. Expatriate Bangladeshis may send their hard
earned foreign currencies through those banks or may contact any renowned banks
nearby (where they reside/work) to send their money to their dear ones in
Bangladesh.
 To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has
Taka Drawing Arrangement with many banks/exchange companies in different
countries. The expatriate Bangladeshis may send their money in BDT through the
branches/subsidiaries of Jamuna Bank Ltd.

34
 2.20 SWIFT
Jamuna Bank Limited has recently become a member of SWIFT (Society for Worldwide
Inter-bank Financial Telecommunication). SWIFT is a member owned co-operative, which
provides a fast and accurate communication network for financial transactions such as Letters
of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up
possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries
around the world.

Advantages of SWIFT are as follows:

1. It is most secured. 6. Accurate BKE (Bilateral Key

2. It is swift. Massage can be received
or transmitted faster than any other
means.
3. It is accurate. No distortion of
message occurs during transmission
as it uses digital system.
4. Cost effective.
5. Several terminals can be used to
process the messages.
Exchange/Test key) confirms
genuineness of the messages.
7. Only the SWIFT licensed vendors
are allowed to service the system.
8. All the messages are stored in the
SWIFT main computer. Any
message can be retrieved. The
network refuses incomplete and
ambiguous messages.

2.21 Corporate Banking

The motto of JBL’s Corporate Banking services is to provide a personalized solution to our
customers. The Bank Ltd. identifies and distinguishes corporate customers' needs and designs
tailored solution accordingly for the success of their business.

Jamuna Bank Ltd. offers a complete array of advisory, financing and operational services to its
corporate client groups combining trade, treasury, investment and transactional banking activities
in one package. Whether it is project finance, term loan, import or export deal, a working capital
requirement or a forward cover for a foreign currency transaction, our Corporate Banking
Managers will offer you the accurate solution. Our corporate Banking specialists will render high-
class service for speedy approvals and efficient processing to satisfy customer needs.

35
Corporate Banking business envelops a broad range of businesses and industries. We can
leverage on our know-how in the following sectors mainly:

 Agro processing industry  Wholesale trade

 Industry (Import Substitute / Export  Transport
oriented)  Hotels, Restaurants
- Textile Spinning, Dyeing / Printing  Non Bank Financial Institutions
- Export Oriented Garments, Sweater.  Loan Syndication
- Food and Allied
 Project Finance
- Paper and Paper Products
 Investment Banking
- Engineering, Steel Mills
 Lease Finance
- Chemical and chemical products etc.
 Hire Purchase
 Telecommunications.
 International Banking
 Information Technology
 Export Finance
 Real Estate and Construction
 Import Finance

2. 22 Services/Products offered

1. Retail banking 6. Loan Syndication

2. Deposit taking including special 7. Project Finance
schemes 8. Investment Banking
3. Remittance and collection 9. Consumer Credit
4. Import and Export handling and 10. Lease Finance
financing 11. Hire Purchase
5. Corporate Banking 12. 24 hours banking: Q-cash ATM

2.23 General Banking:

Jamuna Bank offers wide-ranging products and services matching the requirement of every
customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd.
make available you a unique mixture of easy and consummate service quality.

We make every endeavor to ensure our clients’ satisfaction. Our cooperative, friendly personnel
in the branches will make your visit an enjoyable experience.

1. Deposit Accounts 4. Q-Cash Round the Clock

2. Foreign Exchange Transactions 5. Jamuna Bank Debit/Credit card
3. Consumer Credit Scheme 6. Loans
36
 7. Foreign Currency Accounts 8. General Banking need

There are mainly four functional departments in the organization. They are-------

1. General Banking.
2. Advance Banking.
3. Foreign Banking.
4. Internet/Online Banking.

2.24 Division of General Banking

a) Accounts Opening
b) Consumer Saving Scheme
c) Cash Department
d) Sanchayapatra

37
3.1About EID Festival Loan

In the current world, customers are considered as the most important assets of an organization.
Satisfied customers are more loyal for the long run prospect of the organization. After the product
offering, its level of performance is observed and identified both by the impact of the product
offered on the overall organizational performance and the customers responses regarding it. The
current study here is to evaluate the level of performance of ‘Eid Festival Loan’ in the occasion of
Eid-ul Fitre on October 1-22, 2006 in Dhanmondi branch of Jamuna Bank Ltd.

3.2 Different types of loan offered:

a. Personal Loan (PL) is offered with its basic features (19% Interest rate, No gift and
including processing charge of 10,000-25,000). That is, when personal loan is offered under
its general features it is General PL.
b. When loan is secured it is called Flexi loan like customer pays lump sum money against loan
which makes the loan flexible and take the loan amount against that money. Flexi loan can be
100% secured too.
c. Eid Festival loan is such that, who has taken PL and FLEXI with the eve of EID, will get all
the added benefits of this product. Eid Festival Loan is offered as a modified and special
version of personal loan. In short, Only PL and another type of Pl ‘Flexi’ fall in offer of ‘Eid
Festival Loan’.

3.3 Characteristics of Eid Festival Loan

This festive loan is basically offered as a modification of personal loan. As from above discussion
FLEXI loan is also a type of personal loan. That’s why by some added features with PL, JBL
offers this Eid special loan as ‘Eid Festival loan’. Under this offer both General PL and FLEXI is
covered.

As the focus of the report is to evaluate the performance of a JBL special product ‘Eid Festival
Loan’, for that reason performance is measured both from organizational side and the customer’s
side. The festival special product ‘Eid Festival Loan’ is one of the recent offers in the Banking
products of Bangladesh consumer banking.

The offer of festival loan is launched as a special product in consumer banking at the earliest
stage of Eid-ul Fitre 2006. The offer launched on September 2006. And it is cutting a very good
figure in the total loan disbursement within these months as a whole rather than the past
responses. Because of its some special features and dynamic offers it has become one of the

38
attractive products to the JBL customers rather than other banks. And JBL is hoping in coming
months it will increase the rate of responses. This special offer ended on 22 October 2006.

3.4 At a glance ‘EID FESTIVAL LOAN’

Make the id more colorful for your loved ones

Festival time is the best time to surprise the loved ones with gifts. To manage the extra money, one can
always turn to Jamuna Bank.

Jamuna Bank at people’s service

Jamuna Bank work hard to make their name synonymous with quality money management. JBL is
consistently developing custom designed banking products to meet the financial needs of respective
customers. Eid Festival loan is one such a product to make the Eid more joyful.

3.5 The Eid Festival Loan offers following benefits:

 No processing fee
 Preferential interest rate*
 Faster Loan Processing*
 Wonderful Punjabi or Saree with every loan
 No mandatory to maintain account with Jamuna Bank.

Source: JBL Eid Festival Loan Booklet

No requirement for cash security

The loan amount may range from BDT 60,000 to BDT 1,000,000. Moreover, no cash collateral is
required to obtain this loan. This means customers don't have to submit their fixed deposits to the
Bank for the period of the loan as security. Some documents from their employer and the guarantee of
a reputed person (as defined by the Bank) will suffice.

Tailored repayment period

Monthly installments can be tailored to meet customer’s convenience and budget. They can choose to
repay the loan in 12 to 60 equal monthly instilments depending on the loan amount. They can also pay
the loan earlier than originally scheduled (prepayment). Jamuna Bank also allows their customers to
pay the loan partially (partial pre-payment) after 1 year of the loan disbursement date.

39
3.6 Process flow chart of consumer loan processing:

Application received from

customer

Sales/Branch scrutinizes the

application

No
Application meets
basic criteria Application declined and returned
to customer

Marketing officer or Manager

recommends the loan

Application is received at
credit and assessed

No
Credit approved?
Application sent back to source

Ye
s

Application sent to loan

No

Documents in order?

Application sent back to source

Loan disbursed and application,

charge docs are logged in safe

Figure: 8 Process flow chart of consumer loan processing

Source: Loan Guidelines of JBL 2006
40
3.7 Marketing Mix:
Marketing Mix

DEVELOPMENT

Target Customer

PRODUCT
PROMOTION
PRICE
PLACE

Product List price

Variety Discounts
Channels Advertising
Quality Allowances
Coverage Personal
Design Payment
Assortments selling
Features period
Locations Sales
Brand Name Credit term
Inventory promotion
Packaging Public
Sizes Transportation
Logistics relations
Services
Warranties
Returns

41
3.7.1 Product:

"Anything that can be offered to a market for attention, acquisition, use or consumption that might
satisfy a want and need. In includes physical objects, services, persons, places, organizations and
ideas."
It is the aspect of the marketing mix that deals with researching customer’s product wants and
designing goods, service or idea that satisfies those wants. The product variables are given below:

 Physical goods features.

 Quality level.
 Accessories.
 Packaging.
 Product lines.
 Branding.

3.7.2 Price:

"The amount of money charged for a product or service, or the sum of the values that consumers
exchange for the benefits of having or using the product or service."
The price variable relates to decisions and actions associated with establishing pricing objectives
and policies and determining product price. Piece is a critical component of the marketing mix
because customers are concerned about the value obtained in an exchange. The variables, which
are considered in case of price, are:

 Flexibility.
 Price level.
 Terms.
 Differentiation.
 Allowances.

3.7.3 Promotion:

"Activities that communicate the product or service and its merits to target customers and
persuade them to buy."
It relates to activities used to inform individuals or groups about an organization and its products.
Promotion can be aimed at increasing public awareness of an organization and of new or existing
products. The variables are:

42
  Promotion blend.
 Salespeople.
 Advertising.
 Sales promotion.
 Publicity.

3.7.4 Place:

"All the company activities that make the product or service available to target customers."
To reach and keep customers, products must be available at the right time and in convenient
locations. A marketing manager makes products available in the quantities desired to as many
target market customers as possible, keeping total inventory, transportation and storage costs as
low as possible.

 Channels type.
 Exposure.
 Intermediaries.
 Outlet location.
 Transportation.
 Storage.

43
3.8 Extra 3ps in service Marketing:

1) People
2) Process
3) Physical evidence

Extra 3ps

People
Process
Employees Flow of activity Physical evidence
Recruiting Standardized
Training Customized Facility design
Motivation Number of steps Equipment
Customer Simple Signage
Education Complex Employee dress
training Customer Other tangible
involvement

3.9 THE 4Cs

1. Customer solution:

It is the way of maintaining customer complaints, product quality, needs, and requirements
efficiently by providing customer feedback and response system.

2. Customer cost:

Reducing cost of production by getting economies of scale.

3. Convenience:

Getting the final product in a convenient outlet. It is the process of making the distribution
channel easier.

44
 4. Communication:

To get involved in he process of two way communications. Interactive promotional activities can
make the communication process more effective.

3.10 Market demography

The description of outward traits that characterize a group of people, such as age, sex, nationality,
marital status, education, occupation or income. Decisions on market segmentation are often
based on demographic data.

3.11 Market Geographic

For each product market in which both merging firms participate, the Agency will determine the
geographic market or markets in which the firms produce or sell. A single firm may operate in a
number of different geographic markets.

3.12 SWOT analysis

Strength (Internal):

Strength is something a company is good at doing. Strength can be skill, a competence, and a
valuable organizational resource or competitive capability or an achievement that gives a
company a market advantage.

Weaknesses (Internal):

A weakness is something a company lacks or does poorly or a condition that puts it at a

disadvantage.

Opportunity (External):

An opportunity is something that a company may grab for company growth and profitability. It is
favorable condition in a company’s external environment.

Threats (External):

A threat is something a company may be exposed to in the external environment that may cause
suffering in growth or profitability. It is an unfavorable trend in the external environment.

45
4. Analysis and Findings:

4.1 Primary data analysis:

Primary data were collected through a structured questionnaire from thirty six respondents. The
findings of the responses are:

4.1.1 Know about features of loan

The objective of the figure is to know the features of the loan, how the features influence them to
take loan.

Figure—07 know feature of the loan

Sources: questionnaire survey

Figure—01 From the survey it is found that, 61.11% respondents know about the feature of the
loan and remaining 38.89% don’t know about the feature of the loan.

Mainly out of 36 (thirty six) customers 22 (twenty two) customers know about the features of the
loan and they were influenced to take the loan only because of the added features with this
modified special personal loan. Rest of the 14 (fourteen) customers don’t know about the features
of the loan, they were influenced as well as for the features and some other reasons like:

a. Increased need for money before EID

b.Influenced from the family and friends
c. Good relations with the bank

46
4.1.2 Why this/these criteria influenced you

The objective of the figure is to know those criteria or factors that influence customers to take
loan.

Figure—08 criteria that influence the customers

sources : questionnaire survey

Figure—02 From the survey it is found that, 41.66% customers are influenced with “other loan
include processing fees”, 50% customers influenced with “interest rate is less than general &
personal loan”, and remaining 8.34% customers influence with “gift with approved loan”.

In this section I found that 15 respondent are said about processing fees, 18 respondent said
about less interest rate than general personal loan and 3 respondent said gift with approved loan
out of 36 respondent. This kind of criteria influence the customer to take the loan.

Mainly we found that interest rate & processing fees take huge amount from any other loan. But
Eid Festival Loan don’t take any processing fees and interest rate less than any other loan, so
customer are more influences to take loan.

47
4.1.3 Requirement of additional features for the loan

The objective of the figure is to know the additional features about the loan, which may attractive
the product.

Figure—09 additional feature requirement for the loan

sources : questionnaire survey

Figure—03 From the questionnaires survey it is found that, 67% customers are response “interest
rate should have to be less”, 7% customer response “ tenors can be increased”, and remaining
26% customers response “specification the loan disbursement time”.

In the questionnaires survey I found that, 9 customer answered no need additional feature for the
loan. But rest of the customers asked for some modified features regarding the offer. According
their opinion their required features are, 18 customers said interest rate should have to be less, 2
customers said tenors can be increased, rest of 7 customers said that fixed the loan disbursement
time. These reasons influenced them to take the loan.

Here we found that most of the customers are conscious about the interest rate because interest rate is
high against any other loan.

48
4.1.4 Responses of Customers regarding Features

The objective of the figure is to know those feature that influence or attract customer regarding
Eid Festival Loan.

Figure—10 response of customer regarding feature

Sources: Questionnaire Survey

Figure—04 In this section I found that, 63.88% customers are response “lower interest rate”,
33.3% customer response “no processing fee”, 0% customer response “no cash security & no
mandatory account maintenance with JBL”, and remaining 2.78% customer response “attractive
gift”.

From the survey I found that, lower interest rate here responses was 23 customers, no processing
fee here responses was 12 customers, no cash security and no mandatory account maintenance
with JBL here responses was 0 customers, attractive gift with the approved loan here responses
was 1 customer out of 36 respondents.

Mainly here found that all of the people that 36 people are influenced by the main three features
which modified from general personal loan offer into festival Loan offer. Lower interest rate, no
processing fee and attractive gift with approved loan this three feature attract the customer most.

49
 4.1.5 Customer’s knowledge about tenors and installments

The objective of the figure is to know the customer’s knowledge about the tenor and
installments of the loan.

Figure—11 Customers knowledge about tenors &installment

Sources: Questionnaire Survey

Figure—05 From the survey I found that 100% customers know about the tenors & installment.

From the survey I found that 100% respondents that means 36 respondent were known about the
tenors and installments they have to pay or they are paying. All the customers they are handling
their loan by their own inspection for that reason they know about the tenors and installments of
the loan.

Here found that all customers know about their tenor & installments, what they are paying against
the Eid Festival loan. So it proved that all customer supervise their account their own hand.

50
4.1.6 Satisfaction regarding tenors and installments

The objective of the figure is to know the satisfaction level regarding the tenor and installments,
are the customers satisfied or not.

Figure—12 satisfaction level of customers regarding tenor & installments

Sources: Questionnaire Survey

Figure—06 From the survey I found that 52.77% are highly satisfied, 30.55% are satisfied,
13.88% are moderate, 2.77% dissatisfied and 0% are highly dissatisfied.

respondents were asked about their level of satisfaction regarding the Tenors and Installments to
be paid or they are paying. The answers are given in a Five point scale bellow-

Responses Point
Highly Dissatisfied 0 1
Dissatisfied 1
51 2
Moderate 5 3
Satisfied 11 4
Highly Satisfied 19 5
Total 36
 Sources: Questionnaire Survey

Here it is to say that 19 respondent are highly satisfied that means 52.77%, 11 respondent are
satisfied that means 30.55%, 5 respondent are moderate that means 13.88%, 1 respondent are
dissatisfied that means 2.77% and 0 respondent are highly dissatisfied out of 36 respondents. we
can say that 30% are satisfied with the Tenors and Installments to be paid or they are paying for
the ‘Eid Festival Loan’. And a very few number of peoples are moderate to regarding this loan.
Only one respondent told that he is dissatisfied and he mentioned the reasons in the answer of the
question no-16. That is:

 Tenors should have to be more, that is more than five years.

 Installments repayment should not be predefined by dates like 2nd, 8th, 16th or 24th day of the
month.

But it is not possible to extend the tenors, because the highest tenor 60 installments (in Five years)
are well enough to repay. It is a standardized format and well accepted to the majority too.

Here I found that the scale score of this question is 4.33 ( APPENDIX-C), which indicates
customers are satisfied not highly but more than satisfied.

52
4.1.7 Satisfaction level regarding interest rate

The objective of the figure is to know the satisfaction level regarding interest rate of Eid Festival
Loan.

Figure—13 satisfaction level of customers regarding interest rate

Sources: Questionnaire Survey

Figure—07 From the questionnaires survey I found that 15 respondents were highly satisfied, 21
respondents are satisfied out of 36 respondent. Moderate, dissatisfied and highly dissatisfied was
0 respondent. Here question was asked regarding the ‘Interest rate’ charged (1%less) for ‘Eid
Festival Loan’ in comparison with the general personal loan that is being offered over the year.

53
 Highly Dissatisfied Moderate Satisfied Highly
Dissatisfied Satisfied

0 0 0 21 15

Mainly I found regarding this question the score is 4.97 (APPENDIX-C). That is a sign of highly
satisfaction of the customers regarding the Interest rate of Eid Festival Loan.

4.1.8 Comparison between Eid Festival Loan with Other loan product of JBL

The objective of the figure is evaluate the Eid Festival Product with other loan product of JBL and
satisfaction level.

Figure—14 Comparison between Eid Festival Loan & other loan with JBL

Sources: Questionnaire Survey

Figure—07 From the survey I found that, out of 36 respondent 16 have another loan with JBL
and their satisfaction level is find out from question no- 13. Within 16 respondents 6 respondent
are satisfied and 10 respondent was highly satisfied regarding the other loans they have in JBL

Highly Moderate Highly

Dissatisfied Satisfied
Dissatisfied Satisfied
54
0 0 0 6 10
 Sources: Questionnaire Survey

From the calculation I found that the scaling score of that response is 4.63 (APPENDIX-C), which
is satisfactory to the customers regarding the other loans they have in JBL. And in comparison
they are satisfied.

4.1.9 Comparison between others bank loan with JBL’s Eid festival Loan

The objective of the figure is to know the performance of other bank’s loan with JBL’s Eid
Festival Loans. From here we can know customers are satisfied with others banks loan or not,

Figure—15 Satisfaction
level of customers, others banks loan with JBL Eid Festival Loan

Sources: Questionnaire Survey

Figure—08 From the questionnaires survey I found that, out of 36 respondents 18 did not have
any loan with other bank rest 18 respondents was loan with other banks. As for example: HSBC,
BRAC Bank LTD, One Bank LTD, Islamic Bank Bangladesh LTD, United Commercial Bank
LTD and NCC Bank LTD. The responses are mentioned bellow-

Highly Dissatisfied Moderate Satisfied Highly

Dissatisfied Satisfied

0 0 1 10 7

Sources: Questionnaire Survey

55
Here the questions were asked regarding the issue, the satisfaction level of customers who also
have loan with other bank in comparison with ‘Eid Festival Loan’

Here the scaling score is 4.33 (APPENDIX-C). Which represents customers are satisfied with this
loan in comparison with the other loan they have in other banks.

These four five point scale questions were asked to bringing out the overall performance of this
loan product to the customers of this product. That is why Summation of these four mean scores
will give specific point over the Liker Scale. Which will give a clear picture of the performance
regarding the responses of the customers-

= 4.565 (APPENDIX-C)

This mean score of all means will represent a clear picture of the performance of ‘Eid Festival
Loan’ regarding customer’s satisfaction. From the Liker scale points, it can be illustrated that the
level of customer satisfaction is very high regarding this loan product. This outcome means that to
evaluate the performance, customer’s responses are a highly influencing factor here.

56
4.2 Secondayry data analysis:

According to the specific objective a and b, internal performance of JBL Dhanmondi branch has
been brought out and the comparison within ‘Eid Festival loan’ and other loan products of JBL
has taken place in this section. For these reasons monthly data are presented and analyzed here
from September-December 2006.

Here the comparison within months is given-

For the month of September 2006 For the month of October 2006

Figure: 16 PL, Flexi, and BIL on September

Figure: 17 PL and Flexi on October

Source: Month wise Database of JBL Dhanmondi branch

The September data 2006 represents that the Personal Loan disbursed on that month was for 22
peoples and the amount of loan was BDT 8441k ( BDT 84,41,000).

On the other hand Flexi and Business Installment Loan (BIL) were accordingly BDT 1960k
(Flexi) and BDT 7800k (BIL).

On the month of October 2006 no BIL was disbursed. But the ratio of PL and Flexi disbursement
was near to 50%. That is PL was disbursed BDT 8019k (BDT 80, 19,000) and Flexi was
disbursed BDT 8100k (BDT 81, 00,000).

On October 90 people was applied for the JBL special loan offer ‘Eid Festival Loan’ which is a
modified offer of PL. and the loan approved and disbursed on next month of October that is
November.

57
From the comparison we find that on September for 22 people loan was disbursed. In October 90
people was applied for the Eid Festival Loan. Here the data shows that amount of PL are less on
October 2006 than the September amount.

Comparison within November and December 2006-

For the month of November 2006 For the month of December 2006

P L a n d Fle xi d is b u r s e d o n No v e m b e r 20 0 6
PL and BIL disbursed on Decem ber 2006 ('0 00)

1000 0

PL
P L , 1 01 5 7 PL
FL EX I, FLEX I
BIL
20 71 0
1 200

Figure:18 PL, Flexi on November Figure: 19PL and BIL on December

Source: Month wise Database of JBL Dhanmondi branch

-On the month of November the ratio of PL and flexi has shifted at an increasing rate.

Here the chart shows that Flexi has disbursed on November BDT 20710k (BDT 2, 07, 10,000)
and PL BDT 10157 (BDT 1, 01, 57,000). This big shifts in the figure reflects that after the “Eid
Festival Loan’ has offered the response of customers interest has influenced very much.

-On the month of December 2006, it has shown in the chart that, only the PL has disbursed at a
higher rate here BDT 10000k (BDT 1, 00, 00,000). BIL is a very small slice here. That is only
BDT 12, 00,000.

Here the data show that loan disbursement is increasing after the Eid Festival Loan Offered. This
is positive performance for the product.

58
5. Major Findings:

According to the analysis of both Secondary and Primary data the most important findings of the
report are as follows-

 Before October PL and Flexi disbursement was smooth according to its history.
 PL and Flexi disbursement increased after the ‘Eid Festival Loan’ offered.
 On October 2006 there has been a big change over the loan disbursement history of JBL
Dhanmondi Branch.
 On November and December grater shift of PL and FLEXI disbursement, which show a
positive performance of the special product offer in the Eid.
 On September 2006 to December 2006 there was an increasing trend of loan
disbursement, which show a good performance of the product.
 JBL Dhanmondi Branch have overfilled the present requirement target of the month of
October and month of November after the Eid Festival Loan has disbursed.
 JBL Dhanmondi Branch has got 2nd position on the month of October after the Eid
Festival Loan offered, before it was 3rd position.
 Three additional feature like interest rate, no processing fees, attractive gift with the loan
made the product more attractive to the respondent.
 Customer are highly satisfied regarding interest rate 1% less.
 In case of interest rate 58% customer are highly satisfied and rest 42% customer are
satisfied.
 Customer are properly informed about the product, who got the loan before.
 Overall performance of Eid Festival Loan is excellent then other loan of JBL.

59
6. Recommendation:

Based on the analysis and findings some recommendations are made regarding the performance
of ‘Eid Festival Loan’ as a special modified Personal Loan product of JBL. These
recommendations are given not only for the JBL Dhanmondi Branch but also for whole JBL
Bangladesh regarding ‘Eid Festival Loan’ and its further performance. The specific
recommendations are-

 JBL Dhanmondi Branch should have to be more customers oriented, like more educating
and informing customers about their special offers. It will increase their credibility more
in the market. A proper educated customer will be helpful as well as an asset to the
organization. For that reason employees have to be more customers oriented when
serving them.

 ‘Eid Festival Loan’ also can be offered in the Eid-ul Azha. Because in this Eid festival
the pressure for buying the animals of Quarbani become a tough job for middle class and
small earning peoples. So this will be great offer to customers.

 This festive loan offer could be offered for other religion’s festival, like as Puja, Buddha
Purnima or Christmas.

 Door step services have to be more efficiently than the present system. Because
customers are to busy to communicate. That’s why active branch employee is needed to
conduct effective communication with potential customers. That is contacting customers
provide them required papers and information regarding this loan offer could provide
better response.

60
7. Conclusion:

The conclusion of the report outlines the outcome which reflects that performance of the ‘Eid
Festival Loan’ in JBL Dhanmondi Branch is remarkable.

This trend analysis has shown that after September 2006 there is an increasing trend from October
to November. This is the period of Loan disbursement, which shows a positive performance of
Jamuna Bank Bank, Dhanmondi Branch. For which JBL Dhanmondi has got the 2nd position in
the JBL Bangladesh on the month of November 2006 and got awarded. That is why it can be said
that ‘Eid Festival Loan’ has brought success to JBL Dhanmondi.

The customers are influenced with the loan they have taken and the branch itself has out
performed as the loan product festival loan a modified format of PL has offered in the market.

According to the customers, 100% of them were influenced by the three major features of the
loan. That is why they applied for loan. But these features are added with the general PL which
had a highly positive impact on the Modified PL the ‘Eid Festival Loan’.

100% customers are informed about the Tenors and Installments. 50% of respondents have Loan
with other bank. According to them 52% are highly Satisfied, 31% are satisfied, 14% are
moderate, 3% are somehow dissatisfied and 0% and no one is Highly Dissatisfied. The reasons of
dissatisfaction have already discussed in the Analysis and Findings phase

Source- Field Survey 2006

Highly Highly
Dissatisfied Moderate Satisfied
Dissatisfied Satisfied

1 2 3 4 (4.565) 5

The value of the summed Mean value lies somewhere in the scale which represents that customers
are over satisfied with the ‘Eid Festival Loan’ they have got from JBL Dhanmondi Branch.

61
The overall organizational performance and satisfaction level of the customers’ shows us that the
Jamuna Bank’s special product ‘Eid Festival Loan’ in Dhanmondi Branch has performed
successfully, which brings the organizations overall success in the industry. But for the best
performance in the market, concentration should be given in some issues concerning the
organizational practice as well as the relevant customers in the market. According to the overall
report context it has been confirmed that all the requirements of the objective has taken place to
prepare this report.

8. Bibliography

Text Books

Kotler and Armstrong, Philip Kotler and Gary Armstrong. “PRINCIPLES OF MARKETING”.11th Ed.
Upper Saddle River, New Jersey, U.S.A, Prentice-Hall, Inc. 2006.

William G. Zikmund, (2003), Business Researches Methods, 7th ed., Thompson, Mason,
Ohio.

Zikmund, G.W. (2000), Business Researches Methods, 6th ed., The Dryden Press, Harcourt
College Publisher, New York.

Other Publications

Annual report Jamuna Bank LTD 2006.

Loan Guideline Jamuna Bank LTD.

Booklet of ‘Eid Festival Loan’.

Websites

www. Jamunabankbd.com

62
9.1 Appendix-A Questionnaire

[Dear respondent, I’m a student of B.B.A Program studying in Bangladesh University of Business
and Technology (BUBT). I was assigned to prepare a report on “PERFORMANCE and
EAVLUATION OF Jamuna Bank’s SPECIAL PRODUCT IN Dhanmondi BRANCH: ‘EID
FESTIVEL LOAN’.” which is a partial fulfillment of my internship program. As a result, some
information would be needed from you. It is assured that all the information will keep
confidential and solely use in this report only.]

1. Do you have applied for JBL ‘Eid festival loan’?

• Yes

• No

2. There are some features in this offer, do they influenced you or anything else?

• Yes

• No

• -------------------------------------------------------------------
---------------------

3. Why this/these criteria influenced you?

------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------

4. Do you think there should have more additional features with this offer for the
customers?

• Yes

• No

63
5. If yes, please specify those criterions?

-------------------------------------------------------------------------------------------------

6. If no, then why?

7. Which features of this offer attracts you more? Choose you options-----

• Lower interest rate

• No processing fee

• No cash security

• Attractive gift with approved loan

• Other--------------------

8. Do you know about the tenors and installments?

• Yes

• No

9. What are you feeling regarding this? (Please give a tick mark in your preferred zone).

Highly
Dissatisfied Moderate Satisfied Highly Satisfied
Dissatisfied

10. What do you think about the amount of installments? Choose your options-----

• It is as normal as other banks

• It creates pressure on your income

• It cuts off your savings

64
 • It is friendly

11. What do you think about the current interest rate of ‘Eid Festival Loan’ regarding
general personal loan offered over the year in JBL?

Highly
Dissatisfied Moderate Satisfied Highly Satisfied
Dissatisfied

12. Do you have another loan with JBL?

• Yes

• No

13. If yes, what is your level of satisfaction regarding ‘Eid Festival Loan’ in comparison
with other loan products in JBL?

Highly
Dissatisfied Moderate Satisfied Highly Satisfied
Dissatisfied

14. Do you have loan with other banks?

• Yes

• No

65
15. If yes, what is your level of satisfaction regarding ‘Eid Festival Loan’ in comparison
with other bank’s loans?

Highly
Dissatisfied Moderate Satisfied Highly Satisfied
Dissatisfied

16. If you have any opinion regarding ‘Eid Festival Loan’ as a modified special format of
personal loan, please mention here bellow.

-----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------

Thank you for your precious time. ___ / ___ / 2008

66
9.2 Appendix-B

• JBL – Jamuna Bank Limited

• PL - personal Loan
• BB – Bangladesh Bank
• AD – Authorized Dealer
• BMRE – Balancing Modernization Replacement and Expansion
• BSRS – Bangl Shipa Rin Sangstha
• CAMEL – Capital Asset Management Equity Liability
• CDBL – Central Depository System
• L/C – Letter of Credit
• RMG – Ready Made Garments
• SWIFT – Society for Worldwide Inter-bank Financial Telecommunication
• BKE – Bilateral Key Exchange
• MSS – Monthly Savings Scheme
• DBGS – Double Benefit Growth Scheme
• MPPS – Monthly Payable profit Scheme
• TIN – Tax Identification Number
• POS – Point of Sale
• PAD – Payment Against Document
• LIM – Loan Against Imported Merchandising
• LTR – Loan Against Trust Receipt
• IBP – Island Bill Purchase
• ECC – Export Cash Credit
• PC – Packing Credit
• FDBP – Foreign Documentary Bill Purchase
• LDBP – Local Documentary Bill Purchase
• SS – Sub Standard
67
• IRC – Import Registration Credit

9.3 Appendix-C

Calculation of Score on Liker Scale:

The calculations of scores under likert scale for different question answer has shown bellow-

Highly Dissatisfied Moderate Satisfied Highly

Dissatisfied Satisfied

1 2 3 4 5

Here these 1-5 points represent the value of each scale point. This value will be multiplied with
the number of responses on that specific scaling point.

Basic Equation is Mean Value= ∑ (Responses × Point Value) ∕ No of Respondents

Question -10

Mean Value= (0 ×1) + (1 ×2) + (5×3) + (11×4) + (19×5) ∕ 36

=4.33

Question -11

Mean Value= (0 ×1) + (0 ×2) + (0×3) + (21×4) + (15×5) ∕ 36

68
 =4.97

Question -13

Mean Value= (0 ×1) + (0 ×2) + (0×3) + (6×4) + (10×5) ∕ 16

=4.63

Question -15

Mean Value= (0 ×1) + (0 ×2) + (1×3) + (10×4) + (7×5) ∕ 18

=4.33

Calculations of an Overall mean value-

_

µ = ∑ x ∕ No of Questions

= (4.33+4.97+4.63+4.33) ∕ 4

= 4.565

69
9.4 Appendix-D

Table-9.4.1( know about features of loan)

Responses Frequency Percentage

Know 22 61.11%
Don’t know 14 38.89%
Total 36 100%

Table-9.4.2 (Criteria that influence you)

Responses Frequency Percentage

Other loans include processing fees 15 41.66%
Interest rate is 1% less than the general
18 50%
Personal loans offer.
Gift with the approved loan 3 8.34%
Total 36 100%

Table-9.4.3 (Additional features for the loan)

Responses Frequency Percentage

Interest rate should have to be less 18 67%
Tenors can be increased 2 7%
Specification the loan disbursement time 7 26%
Total 36 100%

Table-9.4.4 ( Response of customer regarding feature)

Responses Frequency Percentage

Lower interest rate 23 63.88%
No processing fee 12 33.34%
No cash security 0 0%
Attractive gift 1 2.78%
No mandatory account maintenance with JBL 0 0%
Total 36 100%

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Table-9.4.5 (Customer Knowledge about tenor & installment)

Responses Frequency Percentage

Yes 36 100%
No 0 0%
Total 36 100%

Table-9.4.6 (Satisfaction regarding tenors and installments)

Responses Frequency Percentage

Highly satisfied 19 52.77%
Satisfied 11 30.55%
Moderate 5 13.88%
Dissatisfied 1 2.77%
Highly dissatisfied 0 0%
Total 36 100%

Table-9.4.7 (Satisfaction level regarding interest rate)

Responses Frequency Percentage

Highly satisfied 15 41.67%
Satisfied 21 58.33%
Moderate 0 0%
Dissatisfied 0 0%
Highly dissatisfied 0 0%
Total 36 100%

Table-9.4.8 (Comparison between Eid Festival Loan with Other loan product of
JBL)

Responses Frequency Percentage

Highly satisfied 10 62.50%
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 Satisfied 6 37.50%
Moderate 0 0%
Dissatisfied 0 0%
Highly dissatisfied 0 0%
Total 16 100%

Table-9.4.9 (Comparison between others bank loan with JBL’s Eid festival Loan)

Responses Frequency Percentage

Highly satisfied 7 38.88%
Satisfied 10 55.55%
Moderate 1 5.55%
Dissatisfied 0 0%
Highly dissatisfied 0 0%
Total 18 100%

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