Internship report on General Banking Activities Activities of Dutch Bangla Bank Limited Central Banks, Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when we use the term “Bank” without any prefi, or restriction, it refers to the !Commercial "anks. Commercial "anks are the primary contri"utors to the economy of a country. So we can say Commercial "anks are a profit-making institution that collects the deposits from the surplus unit of the society and then lend the deposits collected to the deficit unit of the society. So the people of the society and the government are very much dependent on the commercial "anks as the financial intermediary. #s "anks are profit-earning concern they collect deposit at the lowest possi"le cost and provide loans and advances at higher. $he differences "etween two are the profit for them. Banking sector is epanding its hand in different financial events every ever y day. #t #t the same time the "anking process faster, easier and the "anking arena is "ecoming wider. #s #s the demand for "etter service increases day "y day, they are coming with different innovative ideas % products. In order to survive in the competitive field of the "anking sector, all "anking organi&ations are looking for "etter service opportunities to provide their fellow clients. #s a result it has "ecome essential for every person to have some idea on the "ank and "anking procedure. Internship program is essential for every Business #dministration student. In other words it is mandatory for the student of any professional degree. It helps them to get ac'uainted with the real life situation. (or the student of IBS it is the re'uirement of the )B# program as it holds * credits and that is why I was placed in the +utch-Bangla Bank td. to complete internship for the period of * months. Origin of the Report:
$he report entitled “eneral Banking #ctivities of +utch-Bangla Bank td.” has "een prepared as a partial fulfillment of )B# program authori&ed "y the +irector, Institute of Business Studies, +arulIhsanniversity. Objective of the Report:
$he o"/ective of the internship program is to familiari&e myself with the real market situation, to compare them with the "usiness0 theories % at the last stage make a report on assigned task. $he main o"/ective of this report is to have an assessment on eneral Banking #ctivities of +utchBangla Bank td. I tried my "est to know how the Bank is providing facilities to its clients % to sugges sug gestt remedi remedial al measur measuree for the develo developme pment nt of overal overalll "ankin "anking g activi activitie tiess if re'uir re'uired. ed. In addition, the study seeks to achieve the following o"/ectives1 2 $o review the present position of +utch-Bangla Bank 2 $o find find out some pro"lems which are faced "y +utch-
td.
Bangla Bank td in customer recovery. 2 $o determine the 'ualitative change of customer recovery position. 2 $o determine the sectors that is responsi"le for increasing the "etter service. 2 $o familiari&e familiari&e with practical 3o" 4nvironment. 2 $o have have an eposu eposure re on the financ financial ial insti institut tution ion,, especi especiall ally y on "ankin "anking g enviro environme nment nt of Bangladesh. 2 $o relate the theories of "anking with the practical "anking activities. 2 $o present an overview of +utch-Bangla Bank td. 2 $o appraise the $rade Service performance of +utch-Bangla Bank td. 2 $o identify identify the pro"lems facing "y +utch-Bangla Bank td. 2 $o suggest remedial measure for the development of +utch-Bangla Bank td. Methodology Methodology of the Study tud! Design
$he report was fully investigative in nature. +ata have "een collected from two sources1 5. 6rimary sources. 7. Secondary sources. Data "ollection:
$his study $his study is main mainly ly "ase "ased d on seco seconda ndary ry data data avail availa" a"le le from from the the vari variou ouss divis divisio ions ns and departments of +utch-Bangla Bank td, in addition to these other necessary information have "een collected from the daily news papers, relevant /ournals, annual reports of +utch-Bangla Bank td, Bangladesh "ank, )inistry of (inance and 6lanning and pu"lications of other relevant institutions have also "een taken into consideration. #rimar! sources of data:
2 (ace to face conversation co nversation with the "ank officers % staffs.
Bangla Bank td in customer recovery. 2 $o determine the 'ualitative change of customer recovery position. 2 $o determine the sectors that is responsi"le for increasing the "etter service. 2 $o familiari&e familiari&e with practical 3o" 4nvironment. 2 $o have have an eposu eposure re on the financ financial ial insti institut tution ion,, especi especiall ally y on "ankin "anking g enviro environme nment nt of Bangladesh. 2 $o relate the theories of "anking with the practical "anking activities. 2 $o present an overview of +utch-Bangla Bank td. 2 $o appraise the $rade Service performance of +utch-Bangla Bank td. 2 $o identify identify the pro"lems facing "y +utch-Bangla Bank td. 2 $o suggest remedial measure for the development of +utch-Bangla Bank td. Methodology Methodology of the Study tud! Design
$he report was fully investigative in nature. +ata have "een collected from two sources1 5. 6rimary sources. 7. Secondary sources. Data "ollection:
$his study $his study is main mainly ly "ase "ased d on seco seconda ndary ry data data avail availa" a"le le from from the the vari variou ouss divis divisio ions ns and departments of +utch-Bangla Bank td, in addition to these other necessary information have "een collected from the daily news papers, relevant /ournals, annual reports of +utch-Bangla Bank td, Bangladesh "ank, )inistry of (inance and 6lanning and pu"lications of other relevant institutions have also "een taken into consideration. #rimar! sources of data:
2 (ace to face conversation co nversation with the "ank officers % staffs.
2 Conversation with the clients. 2 +ifferent0 manuals of +utch-Bangla Bank td. 2 +ifferent circulars of +utch-Bangla Bank td. econdar! sources of data:
2 #nnual report of +utch-Bangla Bank td, 7889. 2 +ifferent papers of +utch-Bangla Bank td. 2 npu"lished data. 2 +ifferent tet "ooks. Scope of the the Study:
$his report has "een prepared through etensive discussion with "ank employees and with the clients. :hile preparing this report, I had a great opportunity to have in depth knowledge of all the "anking activities practiced "y the +utch-Bangla Bank td. Limitations Limitations of the Study: Study:
$he present study was not out of limitations. But as an intern it was a great opportunity for me to know the "anking activities of Bangladesh specially +utch-Bangla Bank td. Some restraints are disclosed "ellow1 2 $he main constraint of the study is insufficiency of information, which was re'uired for the study. $here are various information the "ank employee can0t provide due to security and other corporate o"ligations. 2 +ue to time limitations many of the aspects could not "e discussed in the present report. 2 4very organi&ation has their own secrecy that is not revealed to others. :hile collecting data through interviewing the employees, they did not disclose much information for the sake of the confidentiality of the organi&ation. 2 Since the "ank personals were very "usy, they could provide me very little time. 2 #nother significant pro"lem faced during the preparation of this report was the contradictory eplanation of a single su"/ect "y different employee. 2 $he clients were very "usy to provide me much time for interview.
2 I carried carried out such a study for the first first time, so in eperience eperience is one of the main constraint constraintss of the study.
The Bank Dutch$Bangla Bank Ltd% &DBBL' is the first Bangladesh- 4uropean /oint venture commercial "ank incorporated on 3uly 89, 5;;< under the Companies #ct 5;;9. it is a pu"lic company limited "y shares. :ith the permission of Bangladesh Bank, it commenced its commercial "anking operation on 3une 8*, 5;;=. $he head office of +utch-Bangla Bank td is at Sena >allyan Bha"an ?9th floor@, 5;<, )oti/heel CA#, +haka-5888. +BB conducts all types of commercial "anking activities and renders all types of personal and corporate "anking services to the customers of all strata of the society within the framework of Bank Companies #ct 5;;5 and rules and regulations laid down "y Bangladesh Bank from time to time. $he etherlands +evelopment (inance Company ?()@ of the etherlands is the international sponsor of the Bank. $he () is the +utch +evelopment Bank of the etherlands speciali&ed in financing of private enterprises in #sia, #frica, atin #merica and 4astern 4urope.
nder a technical assistant grant from the (), #B-#)D Bank of the etherlands provided technical assistance to +utch-Bangla Bank td. +uring the first year of operations of the "ank ?5;;E-5;;;@. Background of DBBL:
+utch-Bangla Bank imited is a "rainchild of its chairman )r. )ohammed Shaha"uddin #hmed. Fe dreamed it long "ack, when he had "een trying to arrange fund for $ami/uddin $etile )ills imited ?$$)@ #+ >ader Synthetic (i"ers imited ?>S(@ through the traditional "anking system. $hose pro/ects were implemented, "ut had to face time and run over due to procedural delay in getting access to credit facilities, among others, this might "e a good reason for thinking a"out a "ank where the entrepreneurs will have easy access to modern "anking services. )r. #hmed has had a close relationship with (), the etherlands +evelopment (inance Company since 5;G*. Fe opened a dialogue with () regarding the "anking pro/ect in 5;G;. )r. roosman , a "rilliant officer of () visited Bangladesh and wrote to )r. (. 3. Smit, +eputy )anaging +irector of () a"out )r. #hmed0s proposal. () sent fact finding terms that initially responded negatively and commented that is little scope in Bangladesh to float a "anking "usiness. But )r. #hmed don0t give up, rather he started eploring more vigorously. #t last )r. 4. F. 3. root of small scale department of () in hid letter dated +ecem"er 8E, 5;;7 responded positively indicating, “Small 4nterprises +epartment of () is in a position to finance intermediary "ank” and accordingly asked for a "usiness plan. In the year 5;;<, Bangladesh Bank in their letter no. +B+ ?+@ 788A<;-E;;;A;< dt. 7*A8EA5;;< issued consent for esta"lishing the "ank. Mission of Dutch-Bangla Bank:
$he main element that "rings success for a "ank is customer satisfaction, state of the art products and services, competence and efficiency that "ased on professionalism. (or this purpose, +BB has remained dynamic in its continued efforts to improve and increase core competency and
service efficiency "y constantly upgrading product 'uality, service standards, protocol and their effective participation in making use of the state of the art technology. lo"al "anking has changed rapidly and +BB has worked hard to adapt to these change. $he "ank looks forward with ecitement and commitment to "ring greater "enefits to customers. #s a step of adopting the change, +BB has gone on to Online Banking ervice recently. +BB has given services to Bangladesh through active financial participation in all segments of the economy, trade and commerce, Industry, service and agriculture etc. Vision of Dutch-Bangla Bank:
+utch-Bangla Bank dreams of "etter Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and a"ove all a society "ased on morality and ethics make all our lives worth living. lo"al Banking has changed rapidly and +BB has worked hard to adapt to these changes. $he "ank looks forward with ecitement and a commitment to "ring greater "enefits to customers. +BB0s main vision is to dedicate their service to the nation through active financial participate in all segments of the economy, Industry, trade % Commerce, #griculture, and Service Sector etc. Business Obecti!es of DBBl:
2 $o make sound loans and investments% 2 $o "uild up a low cost fund "ase. 2 $o meet capital ade'uacy re'uirement at all time. 2 $o install a scientific )IS to monitor "ank0s activities. 2 $o ensure 588H recovery of all advances. 2 $o adopt appropriate management technology. 2 $o ensure a satisfied work force. 2 $o focus a free-"ased income. Business "hilosophy:
$he +BB0s corporate philosophy is to "uild its non-funded face and commission income stream, thus reducing its reliance on interest income alone. By providing a one window service to its customers- the Bank is committed to "eing a sophisticated, prominent and professional
institution. +uring the first five years +utch Bangla Bank0s strategy was focused on continuing in provident of internal procedures and operating structures, to have a greater control on the 'uality of its "usiness and to provide "etter management direction. +BB0s focus is to provide one counter service to its clients covering•
Commercial Banking ?+eposit #ccounts@
•
Customer "anking ?Detail
[email protected].,
•
5. $raveler Che'ues
•
7. (oreign and Inland Demittance
•
(inancial Services
•
Corporate "anking
•
#sset and lia"ility management
•
i'uidity and capital Desources )anagement
•
Information $echnology
•
Fuman Desource
Strategic Decisions of DBBL: On$Line Banking:
+utch-Bangla Bank imited now using locality developed Branch Banking software in almost all its "ranches. But with a view to provide world class "anking facilities to its customer, +BB has undertook upon an am"itious program "y investing $k.7<8.88 million for ac'uiring a stateof-the-art total automation pro/ect which +BB claimed to said as “$ruly n ine Banking”. $he decision of ac'uiring the automation program has "een "ased on the Bank0s own core competence in its I$ division, reinforced with the site visit of "ank0s highest management of similar installations of different "anks in India and Srianka. +BB chose “(4CB4” from “i-fle solution”, a world leader in technology solutions for the financial services industry, which will ena"le +BB to render a fully automated real time any-where any-"ranch "anking services, covering 79 hours a day and *=< days a year. #s part of the on-line "anking program, internet "anking, +BB eus +e"it Card, +BB )aestroA cirrus +e"it Card and +BBl Credit card will also "e launched shortly and all preparations regarding this are in final stage.
$o fulfill this decision, +BB has set-up a most modern and largest state of the art data centre and have assem"led a core group of competent I$ professionals and other persons. $hese persons have undergone a two-month etensive training course in Bangalore and )um"ai, India on (4CB4. $he +ata Centre will also have an on-line +iaster Decovery site ?+DS@, the first of its kind in the country, to safeguard the customers0 interest and to have an effective disaster management system in place. $his will help maintain and preserve all necessary data at a separate and more-safe custody. $he scrutiny of +BB0s computer system stands on four ?9@ layers, which are at application, in networking, in data"ase and in the operating systems. Organi#ational Structure of DBBL :
Chairperson ?wner@ J +irectors ?wners@ J )anaging +irector J +eputy )anaging +irector J Senior 4ecutive Kice 6resident J 4ecutive Kice 6resident ?4K6@ J Senior Kice 6resident ?SK6@ J (irst Kice 6resident ?(K6@ J Kice 6resident ?K6@ J
Senior #ssistant Kice 6resident ?S#K6@ J (irst #ssistant Kice 6resident ?(#K6@ J #ssistant Kice 6resident ?#K6@ J Senior 4ecutive officer ?S4@ J 4ecutive officer ?4@ J fficer J #ssistant officer J $rainee fficer Board of Directors of DBBL:
Chairman )r. )ohammad Saha"uddin #hmed Directors
)r. #"edur Dashid khan )rs. )omta/ Islam )r. Bernhard frey )r. Saha"uddin #hmed
)r. #"ul hasnat md. Dashidul Islam )r.)d. Shahidur Dahman )r. )d.Leasin #li The Strength of DBBL: ( +BB is the first Bangladeshi-4uropean /oint venture Bank
Bangladesh. ( +BB +irectors andAor their family mem"er9s do not maintain any sort of "ank account with +BB, since its inception. ( +BB +irectors do not avail of any facility or even any feeA remuneration from the Bank for attending )eetings of the BoardA 4ecutive CommitteeA #udit Committ ee. ( +BB0s sponsoring shareholders did not take any dividend for the initial < years in order to increase the capital "ase of the Bank. ( +BB allows all local remittances such as $$, ++, 6 etc. free of cost ( +BB0s classified loan as on +ecem"er *5, 7889 is only 8.5=H of total loans and advances. ( +BB0s Degulatory capital as on +ecem"er *5, 7889 Stood at $aka 5.9* "illion ?i.e. taka 59* crore@. ( +BB0s Capital #de'uacy Datio ?C#D@ as on +ecem"er *5, 7889 stood at 58.5*H as against Bangladesh Bank0s minimum re'uirement of ;.88H. ( +BB maintains general provision on unclassified oans and #dvances M *H instead of minimum re'uirement of 5H as set forth "y Bangladesh Bank0s regulatory provision. ( +BBl etends free medical facilities under its “Dural Fealth Service 6rogram” to the mem"ers of the general pu"lic around the rural "ranches. ( +BB supports humanitarian and philanthropic activities and cause and spends a su"stantial amount from its income for these purposes. ( +BB promotes different socio-cultural and sports activities. ( +BB awarded <88 scholarships to meritorious and needy students of the country till this year. (rom the year 788E, the num"er of scholarships will "e 57<8 for which the Bank will need to provide $aka *.E< crore each year. ( +BB provides 7EH of its total advances as $erm oan and a su"stantial amount as working capital loan to support industrial development and "oost up eport earnings of the country. ( +BB has setup the +utch Bangla Bank (oundation for carrying out social and philanthropic activities. (rom the last yea
( +BB distri"utes 7.<8H of its annual profit among the employees as profit sharing. ( +BB, in addition to its statutory auditors, )As. Dahman Fa'ue engaged )As. Foda Kasi Chowdhury % Co. as special auditor to conduct detailed audit of day to day operations of the Bank and su"mit 'uarterly reports to the #udit Committee of the Board and thus help the Committee to discharge its duties more professionally and accurately. $his eceptional step has "een taken "y the Board of +irectors of +BB with a view to "ringing a"solute transparency and accounta"ility in the overall performance of the "ank. ( +BB0s o"/ective is not only to make profit, "ut also simultaneously contri"ute towards social and human development through various altruistic activities. Operating $esults and "rofit %ppropriation: Investments:
$he Bank0s investments, during the year 7889, were made in government securities and in call money market only, which stood at $aka 78*9.;E million as on +ecem"er *5, 7889 as against $aka 7<*E.=7 million in 788*. ut of the total investments of $aka 78*9.;E million, $aka 787E.G7 million were in government securities. $he Bank continued its policy of ensuring safe and sta"le return of its investments. Gross Income:
$he ross Income of the Bank increased to $aka 7*==.;5 million in 7889 as against $aka 755<.9; million in 788*, an increase of 55.GGH. Gross e)penditure:
$he ross 4penditure of the Bank stood at $aka 5E*9.<8 million as against $aka 5==5.E8 million in 788*, an increase of 9.*GH. $he ratio of increase was less mainly "ecause of the Bank0s success in reducing its cost of fund. Operating #rofit:
$he perating 6rofit for the year 7889 was $aka =*7.95 million as against $aka 9<*.E; million in 788*, an increase of $aka 5EG.=7 million or *;.*=H over 788*. :hile net profit ?"efore ta@ for 7889 stood at $aka 9;;.87 million against $aka *G7.58 million of 788*, an increase of taka 55=.;7 million or *8.=8H over 788*. "hart: Operating #rofit
Maor &unctions of DBBL: Deposits:
$he deposit graph will depict that the deposit "ase of the Bank continued to register a steady growth and stood at $aka 758=E.<= million as on +ecem"er, 7889 as against $aka 5E5**.G5 million in +ecem"er 788*, which is an increase of 77.;=H. $he overall deposit mi of the Bank also showed marked improvement with the time deposits stood at G=.87H and demand deposits
stood at 5*.;GH, which during the year 788* was GE.G=H ?time deposits@ and 57.59H ?demand deposits@. $he cost of fund also noticea"ly came down from G.<*H in 788* to =.;8H in 7889. "hart: Deposits Advances:
+BB is in the forefront in implementing the guidelines for managing five core risks in "anking, one of which is credit risks, as put forth "y Bangladesh Bank. $he end-result of all these is evident very clearly from the fact that the classified loan reduced to 8.5=H in 7889 from 8.*=H in 788*. $he a"solute amount also reduced from $aka 95.
Dividend:
$he cash dividend of $aka77.<8 per ordinary share of $aka588 each for the year 7889. It may also "e mentioned that the Bank, as per eisting ta rule, has to "ear income ta of 58 percent of the proposed dividend amounting to $aka 9.<< million. In addition, a +ividend 4'uali&ation (und of $aka<.8< million has "een created in accordance with the provision of BD6+ Circular etter o1 5G, dated cto"er 78, 7887, which will "e consider as a component of permanent capital ?$ier 5@ of the Bank. 'redit Lines ( Short Term 'redit &acilities: *+O *oreign "urrenc! Loan for ,)port Oriented Industries
# foreign currency loan arrangement for SN< million was initially signed with etherlands +evelopment (inance Company ?()@ on Septem"er ;, 788* to provide financial assistance for procurement of capital machinery to the eport oriented industrial units of Bangladesh. Su"se'uently, on ovem"er 58, 7889 under a revised agreement the credit line amount was increased to SNG.E< million. D,G *oreign "urrenc! Loan for ,)port Oriented Industries:
+BB also signed an agreement on +ecem"er *8, 7889 with arman Investment and +evelopment Company ?+4@ for a similar type of foreign currency loan of SN*.E< million for financing the importation of capital machinery eclusively of eport oriented industry. +is"ursement under this loan is epected to "e received shortly and the process for financing is underway.
*+O Local "urrenc! Loan for -ousing *inancing :
Initially, etherlands +evelopment (inancing Company ?()@ had etended long-term local currency loan e'uivalent to 4D < million in cto"er, 7887 to finance small scale enterprises in manufacturing, agriculture, transport, tourism and productive trade % commerce and service industries of the country. Su"se'uently, on our approach, () widened the eligi"ility list "y including financing in housing sector. #gain in ovem"er 7, 7889 () increased the loan amount to 4D E.<8 million for financing residential houses only for fied income group. International .rade:
$he import trade "usiness of +BB registered a very impressive growth of 9G.85H from $aka 5E<9;.=8 million in 788* to $aka 7<;E9.99 million in 7889. on the other hand, eport trade also showed a significant growth of EE.**H form $aka E=<;.5E million in 788* to $aka 5*
$he average of +BB0s share at the close of 7889 was $aka G=G per share of $aka 588 each with the highest of $aka 7888 and the lowest of $aka *;=. %ncillary Ser!ices of DBBL:
$he services other than main functions of a "ank are known as ancillary services of a "ank. )ainly all services ecept taking deposits, honoring check, lending and "orrowing money are known as ancillary services. #ncillary services of a "ank imply non -fund agency services and the income earned from this source includes income "y the way of commission, "rokerage fees and other non-interest receipts. enerally, these services involve very nominal commitment of "ank funds, although these need a considera"le amount of man-hour. #ncillary services include collections, locker service, remittance, guarantees, echange etc. nlike deposits and advances ancillary "usiness can0t "udget in concrete t erm. Bank as service oriented commercial organi&ation play a significant role in an economy "y their intermediation process. Bank around the world now engaged in multidimensional field of financial activities. In recent times "anking "usiness has a sharp change in their character and composition due to num"er of measures and growing demand of a variety of customer services. In this "ackdrop, the attention of the "ank management is no longer concentrated only to the traditional "anking "usiness, i.e. accepting deposits and making loans rather to the provision of a num"er of ancillary services "ringing them risk less or less risk free income to sustain profita"ility. enerally the "ranch manager may however analy&e the 'uantum of such services during the past couple of years, see the trend and then assess the potentialities of these services in the light of eisting ensuring change in the environment. $he following are such services those are rendered "y +BB1 O #ccept deposits in the form of Current +eposit, Savings +eposit, Short-$erm +eposit ?S$+@ and (ied +eposit Deceipt ?(+D@.
O Demittance of fund for "oth inland as well as international.
O +oing pro/ect financing. O 6ay loans and #dvances facilities. O (acilitate 4port-Import "usiness that is trade financing. )uman $esources De!elopment:
+BB, since its inception, has always laid emphasis on Fuman Desource +evelopment. +BB "elieves in the factor that helps the "anks survive is closely interlinked with the 'uality of service and satisfaction of the re'uirements of the clientele and that directly depends on the 'ualification and efficiency of the employees. :ith this o"/ective in view, +BB ecels the performance of its mem"er of the staff "y creating opportunities through providing proper training, rewards and recognition. $o attract and retain 'ualified and efficient staff, +BB has formulated a num"er of well thought policies for the welfare of its employees, in the form of ratuity (und, +BB Superannuation (und, +BB 4mployees Fouse Building oan Scheme, Car easing Scheme, roup Insurance policy, etc. )ighlights on the O!erall %cti!ities of the Bank for the *ear +,, ( +,,.: SL/ 0o/
5
7
*
9
<
=
"articulars
+,,.
+,,
Taka
Taka
6aid-up capital 787,5*<,888
787,5*<,888
5,97;,878,7*;
5,5*=,7GG,=7*
5<;,7<=,88=
5*=,7*9,7;=
79,<=8,<9=,8=*
5;,;=<,<;=,5G5
75,8=E,<
5E,5**,G57,E89
59,;E=,8<=,=5;
55,9*5,*5G,;E;
$otal capital
SurplusA shortage of capital
$otal assets
$otal deposits
$otal loans and advances
E
G
;
58
55
57
5*
59
5<
5=
5E
5G
5;
78
$otal contingent lia"ilities and commitments 55,
=,EG=,<5G,;5*
E5.8;
==.E7
8.5=
8.*=
=*7,957,5G<
9<*,EG<,755
-
-
5;,89*,*<=
5;,89*,*<=
5*,=;G,E8E
58,*G5,G7<
=.;8H
G.<*H
77,5=5,E<=,EE*
5G,*97,G<9,9E;
7,*;G,EG;,7;8
5,=77,E95,E87
7=.57H
77.;GH
5.8=H
5.55H
57=,=78,G<5
779,*5E,<;E
55=.;*
58*.;E
Datio on loans and deposits
Datio on classified loans to total loans and advances 6rofit "efore ta and provisions
Classified loans for the year
6rovision held against classified loans
Surplus A shortage of provision
Cost of fund
Interest earning assets
on-interest earning assets
Deturn on investment ?DI@
Deturn on assets ?D#@
Income on investment
4arning per share ?$aka@
75
77
et income per share ?$aka@ 55=.;*
58*.;E
5<.G9
9.5<
6rice earning ratio ?$imes@
Branch 0et1ork:
#s on 3anuary, 788< +BB "ranches continued to "e 75 as "ecause the Bank )anagement took a cautious approach in its epansion program and instead put all its effort nurturing some of the +BB "ranches opened in 7887. 57 more new "ranches are proposed to "e opened in different strategic locations in then Country during the year 788<. S. o. 5 7 * 9 < = E G ; 58 55 57 5* 59 5< 5= 5E 5G 5; 78 75
Branch ame ocal ffice #gra"ad Banani a"a"pur )oti/heel (oreign 4change arayangon/ >awran Ba&ar Shantinagar Ba"urhat +hanmondi B.B. Doad 6atherhat Fatha&ari )ohakhali )irpur ulshan ttara Islampur +ania >hulna Sylhet
Limitations of DBBL Mirpur Branch: Inade/uate number of ,mplo!ees:
+istrict ame +haka Chittagong +haka +haka +haka arayangan/ +haka +haka arsingdi +haka arayangan/ Chittagong Chittagong +haka +haka +haka +haka +haka +haka >hulna Sylhet
Branch Code 585 587 58* 589 58< 58= 58E 58G 58; 558 555 557 55* 559 55< 55= 55E 55G 55; 578 575
$he main pro"lem I have noticed in the +BB )irpur Branch is that it has insufficient num"er of employees. $oo much responsi"ility is given on one person. $here is too much work left for one person. In the remittance department I have seen that only one person has is issuing $$, ++ and 6ay rder. I have seen some dissatisfaction of customers if there is a little delay in issuing the 6ay rder. In the clearing section I have seen that only one person is dealing with the BC, IBC and he also has to receive all the incoming checks. :hat I have seen in the three months that this tusks are very much tough for one person t o deal with. If there were a few more persons these could have "een done very easily and it could have "een done without any mistake. .oo much pressure over one person:
#s I have said earlier there is too much pressure on one person it creates some pro"lem. $his creates some panic in the employees mind. #s a result some times the employees cannot control their emotions and miss-"ehave with the customers though the customer is not always right. # few times I have seen happing in the DBBL )irpur Branch also. Lack of "ontrol:
I think there is some lacking in the management of DBBL. $he )irpur Branch has no such control over the other "ranches of DBBL. I often have seen that the clearing section has finished their "ranch /o" "ut the other "ranches haven0t yet sent their messenger with the checks. So, the )irpur Branch employees had to wait for the other "ranches. 0nreasonable .ransfer Order:
In my period of internship I have seen a transfer order that was issued "y +BB Fead ffice. By "eing polite and not 'uestioning a"out the management0s a"ility I want to say that I was not satisfied with the transfer order. #s far as I have seen in the three months that a particular employee of )irpur Branch was transferred to another "ranch. But I think that he was very suita"le and skilled for that section. #s he was transferred, the other employees had to make some etra effort to fulfill that position and had to train the new employee, which needed some etra effort and was a time consuming /o" also. But if the transfer is for the rotation of employees to create the employees more eligi"le for almost all kinds of "anking activities it is very much right. But I have seen that, that particular employee was also not satisfied with the transfer order. $ecommendations: Recruit Ade/uate 1umber of ,mplo!ees:
$he ma/or pro"lem I have identified in the DBBL )irpur Branch is inade'uate num"er of employees. So, at first DBBL has to increase the num"er of employees So that the employees can work without any pressure. #nd it will also reduce the dissatisfaction that they are paid low compared to other employees of private "ank and according to their responsi"ility. Increase "ontrol Over the Branches:
DBBL should increase its control over the "ranches to force all the "ranches of DBBL work like a team. If there is more control of management over the "ranches than they will work like a team and the daily eneral Banking activities will "e done in time and the employees will "e more satisfied. $hen the employees will "e ready to perform their activities with their heart and soul. +ake a .ransfer Order +ore Reasonable:
I recommend DBBL to make the transfer order more reasona"le. Consulting directly with the employees a"out their choice can do this and "y not making the transfer order only the management themselves. $he management has also to o"serve that the right man is "eing put in the right place. 2eneralBanking Department of DBBL Mirpur Branch: General Banking:
eneral "anking is the heart of all "usiness "anking activities. eneral "anking department performs the core function of "ank, operates the day-to-day transactions. It is the storage point of all kinds of transaction of foreign echange department, loans and advance department and itself. eneral "anking department deals generally deals with the following sections1 23 Account opening section
43 Account section 53 "learing 63 Remittance Account Opening ection:
$he relationship "etween customer and "anker "eings with opening of an account "y the customer. pening an account "inds "anker and customer into contractual relationship. #ll kinds of fraud and forgery state "y opening an account. So, the "ank should take etreme caution in selecting customers. DBBL )irpur Branch mainly operates the followin g accounts1 23 "urrent Deposit &"D'
43 avings Deposit &B' 53 *i)ed Deposit &*DR' 63 hort .erm Deposit &.D' 73 +onthl! .erm Deposit &+.D' %ccount Opening Section of DBBL Mirpur Branch:
"urrent Account Opening:
# current deposit account may "e operated in several times during a working day. $here is no restriction on the num"er and the amount of withdrawals from a current and "anker does not allow any interest on this account. It is important to mention here that +BB has imposed interest on current account recently, which is a uni'ue offer in the "anking industry. #s the "anker is under o"ligation to repay these deposits on demand, they are called demand lia"ilities of a "anker. $o meet such lia"ilities the "anker keeps sufficient cash reserves against such deposit. $here are two facilities for the person who opens a current account. $hey are1 •
verdraft facility
•
Collection of check transfer of money rendering agency, general utility service.
# person can open a current account or any entity the entry can "e a partnership firm, td, company, proprietorship firm, association, clu"s etc. for opening a current aAc of the a"ove, the re'uirements and steps, which are followed "y this "ranch are the following *or a person:
$here is an individual application from for opening personal current account. $he person, who wants to open this type of aAc, is said to fulfill the following re'uirements1 •
ame, father0sAhus"ands name
•
ccupation
•
)andate in writing
•
+eclaration of nominee
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etter of introduction
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Specimen signature
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$wo copies of passport si&e photographs
•
Initial deposit of $k 5888.
*or 8oint stock companies9 Association9 "lubs etc: In case of opening a current aAc of /oint stock companies, association, clu"s etc, the following re'uirements are said to fulfill1 •
$rue copies of certificate of incorporation or registration
•
$rue copies of certificate of commencement of "usiness ?in case of limited companies only@
•
$rue copies of memorandum and articles of association ? in case of limited companies@
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Degulation "y laws ?in case of associations, clu"s etc@
•
•
$rue copies of resolution of the "oard of +irectors of )anaging committeeAoverning "ody, regarding conduct of aAc. Certificate list containing names and signature of +irectorsAfficer "earers.
*or #artnership#roprietorship "ompan!:
$o open a current aAc on the name of any partnership or proprietorship company, the following documents are re'uired1 •
(illed up application from stating a"out the name and address of the firm.
•
6artnership deed.
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$rade license.
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$wo copies of photograph.
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4ndorsement of an aAc holder on the same "ranch.
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ndertaking A declaration a"out the partnership is taken "y the "ank in a write paper ? for proprietorship firm@
*or public and private limited compan!:
$he documents re'uired to open a current aAc will "e1 •
Copy of certificate of incorporation or registration, trade license.
•
Copies of the Certificate of Business.
•
$rue copy of memorandum of association and articles association a"ide " y the law.
•
•
$rue copy of resolution of the "oard of +irectors A )anaging +irectors Aoverning Body regarding conduct of the aAc. Certificate list containing names and signature of +irectorsAfficer "earers.
•
In order to open an account, the customer is first of all asked to fill up the application form given from the "ank. $he "ank re'uires few documents of the client due to the procedure, such as proposal for opening an account, name and full address, occupation.
aving Account Opening:
# saving is meant for the person of the lower and middle classes who wishes to save a part of their income to meet their future needs and intend to earn an income from their saving. #ll the features are like C+ aAc as no restriction imposed "y the "ank. •
$he "ank offers a reasona"le rate of interest.
•
$he necessary steps for opening a saving aAc.
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ames and #ddresses of the party.
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ccupation.
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(ather0s A Fus"and0s name
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)andate in writing.
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+eclaration of nominee.
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etter of introduction.
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6ower of attorney.
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Specimen signature.
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$wo copies of passport si&e photograph.
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Initial deposit of $k 5888.
•
In this, the deposit supplied with the pass and check"ook for depositing and withdrawal purpose of money for which the "anker maintain saving "ank aAc opening register.
hort .erm Deposit:
Special notice account which is commonly known as short term deposit aAc will keep in the short term ledger. $he customer should dully sign aAc opening form and specimen signature card. ,ntries #assed:
# deposit shall "e prepared crediting the S$+ aAc with the amount o f deposit. "ash;;;;;$Dr
.D ac ;;;;;$"r If the amount is deposited "y the check or transfer aAc, the followi ng entries shall "e passed. #art! "D9 D ac;;;;
.D ac;;;;;;;;;;;<"r $he account opening shall "e pasted in the pasting file in numerical order. $he credit voucher shall "e passed in the S$+ aAc of the party. In case of letter of attorney to de"it the S$+ aAc of the customer voucher will "e prepared and the following entries shall "e passed1 .D ac & part! ' ;;;;;$Dr
"D & part! ' ;;;;;;;;;"r )inimum seven days notice in re'uired for withdrawal of any sum from S$+ aAc. Banker is not legally lia"le to the customer, if the check is dishonored under the following conditions, although the check is properly drawn1 •
If the fund is insufficient.
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If the payment is stopped "y the drawer.
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If payment is stopped "y the court "y issuing gamishee order.
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#ny competent authority issues attached order.
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Check is presented after the death of the customer.
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otice of assignment. Check presented after the "usinessA"anking hour as declared earlier.
Letter of introduction:
$his is a letter of certification, from a person, who is valid customer of that particular or any other "ranch and maintaining any kind of aAc. usually, a customer from other "ranch is not allowed to "e the introducer, it is permitted. $he process of introducing a new client can "e done
on the form itself. $here is a space in the application form where the introducer will write hisAher aAc no, address and sign hisAher specimen signature. It is always advisa"le on the part of the "anker to allow the prospective customer to open an aAc only with a proper introduction from a responsi"le person, known to "oth the parties. # letter of introduction always protects a "anker in the following ways•
6rotection against fraud.
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6rotection against inadvertent overdraft.
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6rotection against un-discharged "ankrupt.
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6rotection against negligence under sections 5*5 of l act.
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6rotection against giving incorrect information to allow "anker.
Declaration of nominee:
$he person who wants to open an aAc can mention one or two nominee. $he application will give a declaration in the space given on the aAc opening form, stating the name and father0s name, age, address, relation and percentage of share. $he aAc holder can change the nomination any time and it will "e valid, only after the death of the aAc holder. pecimen signature:
$he applicant will sign on the application and he will "e provided with an etra paper where he will sign three or more signatures, which he has to maintain all through the duration of the account. Intervie=: #t the time of the opening of a new aAc, this concerned "ranch always takes an interview with prospective customer so as to o"viate the chances of preparation of any fraud at the latter stage. Initial deposits:
It is always a common practice among the "ankers to allow a new customer to open an account only in cash and +BBP takes tk.<88 as initial deposit foe saving account and tk.5888, for current deposit aAc. Operating Instruction+andate in =riting:
If any party wants his aAc to "e operated "y some"ody else, he will provide the "anker in writing statement a"out the operator. >erification of documents:
$he "anker should verify some of the important documents, like the )emorandum of #ssociation, #rticle of #ssociation, and "y laws copy etc. in other cases, the verification of certain other documents like, $rust +eed 6ro"ate, letter of administration etc, may "e needed.
Conversation with the provision of special acts, since a "anker is to deal with different classes of customers, he has to "e thoroughly conversant with certain laws. #a! in slip9 "heck$book and #ass book:
$he customer is supplied with a part-in-slip to use for depositing cash or check of "ill into aAc. the customer is also supplied with a check "ook for drawing money as and when the customer wishes, which normally contains 58 to 78 "ank forms. If the customer dose not likes to have check "ook, then he can make use of suck kind of form. In addition to the a"ove, a customer is given a pass"ook, which reflects the customer0s aAc in the "anker0s ledger. It usually contains the rules and regulations of the "ank and terns and conditions of deposits. *i)ed Deposit Accounts:
# fied deposit account is repaya"le after the epiry of a predetermined period fied "y the customer himself. $he period varies from three months to three years. $he customer may open hisAher account for different time periods, which may "e for three months, si months, one year, two years and three years. $hough (+D is an #Ac, it is something different from other aAc. (+D is a long term deposit. sually customers are allowed to open this aAc for a certain period. $he rate of int erest varies in accordance with the terms of deposit. Opening of *DR:
$here is a prescri"ed form for opening (+D. o introducer and photograph is re'uired for opening this aAc a minimum amount as determined "y the F. is re'uired to open such an account. #remature ,ncashment of *DR:
# depositor has the right to claim for refund of his deposit "efore epiry of the fied term there of. Bank may in special consideration allow premature encashment on application of the deposit su"/ect to the under noted condition1 •
•
•
(or (+D which are * months maturity no interest will "e paya"le at premature encashment, only the principle amount will "e refunded. :hen premature encashment is allowed of and (+D with tenure of over * months, interest will "e paid if enchased "efore epiry of = months at the rate of *months prescri"ed interest rate. 6remature encashment is allowed of and (+D with tenure of over = months, interest will "e paid if enchased "efore epiry of over 57 months at the rate of = months prescri"ed interest rate and the same theory will also "e applica"le for premature (+D encashment of 7 years and * years.
+onthl! term Deposit:
It is an innovative offer of +BB, which is a scheme like (+D "ut in different definition. In this scheme the )$+ holder can withdraw the interest amount after end of each months where principle amount will remain as usual. +ifferent interest of DBBL:
#,RIOD
I1.,R,. RA.,
2 month &+.D'
?%7@
5 months
?%7
C months
%47
2 !ear
%7@
4 !ear
%7
5 !ear
2@%@@
"losing of an account:
# customer may close hisAher account any time "y su"mitting an application to the manager or to the "ranch in charge. $he account of the customer is then checked to see how much money is still in it. $he customer is then asked to draw a final check for the final account in the account ecluding account close charge and other incidental charges. $he customer then surrenders remaining checks to the respective officer who tears off these checks. Kouchers are then issued de"iting the particular account and crediting. In case of /oint account the application to close the account must "e signed "y the holders even though the account is operated either of them. $he entire /oint holder should also sign the last check of withdrawal of the availa"le "alance in the account.
'learing Department of DBBL Mirpur Branch:
Check clearing section of +BB )irpur Branch receives checks, +emand +raft ?++@ and 6ay orders etc. from its customers for collection. It also plays in "ehalf of its customers for those instruments that come to it through clearinghouse. :hen instruments of +BB are sent for collection or received for payment through clearinghouse it is called inter "ank clearance or IBC. $hese are :hen instruments of +BB are sent for collection or received for payment through clearinghouse it is called inter "ank clearance or IBC. $hese are treated in a little different manner than instruments of other "anks. :hen the checks are presented to a "ank "y the other "ank "y the other "anks for collection of fund and to credit that into the party0s account, the instruments must "e cleared through Bangladesh Bank Clearing Fouse. # receiving officer receives checks "y a deposit slip over the counter. +irpur office represents the "ank in the clearinghouse as agent of all the "ranches in +haka city. Clearing section eamines1 •
Ehen the pa!ing bank =ithin Dhaka "it!
•
Ehen the pa!ing bank outside Dhaka "it!
•
Ehen the pa!ing bank of their o=n branch%
.he pa!ing bank =ithin Dhaka "it!:
$he check clearing section of +BB )irpur "ranch receives Inter Branch Debit Advice &IBDA' from the "ranches on the receiving day of the instruments. $he +BB )irpur Branch takes those instruments to the clearinghouse on the following day. If the instruments is dishonored, the respective "ranch sends IB+# to the other local "ranches. $he total procedure takes three days to encash the instrument if everything is in order. .he pa!ing bank outside Dhaka "it!:
$he check clearing section of +BB )irpur "ranch receives Out=ard Bills for "ollection &OB"' to the concerned paying "ank to get IB+# from the paying "ank. If the paying "ank dishonors the instrument, the paying "ank returns it to the respective "ranch with the description of the causes of dishonoring instruments. $he procedure takes around a week. Q.he pa!ing bank of their o=n branch: $he check clearing section of +BB )irpur "ranch sends Out=ard Bills for "ollection &OB"' to the concerned paying "ank to get Inter Branch "redit Advice &IB"A' from the paying "ranch. If the paying "ank dishonors the instrument "ranch, the paying "ranch returns it to DBBL +irpur Branch descri"ing why the instrument is dishonored. 'ash Department of DBBL Mirpur Branch:
Cash is the most li'uid asset and it should "e dealt with very carefully. So this department is really handled with etreme care. $his depart starts the day with cash in vault. #ll cash receipts and payments are made through this department. $his depart starts the day with cash in vault. #ll cash receipts and payments are made through this department. Cash section is very sensitive organ of the "ranch and handled with etra care. Interns are not authori&ed to deal in this section "ecause of its sensitivity. But I was fortunate enough to know the procedures of this section. perating of this section "egins at the start of the "anking hour Cash fficer "egins hisAher transaction with taking money from vault, known as the opening cash "alance. Kault is kept in vary secured room. >eys of room are kept under control of cash officer and "ranch in charge. $he amount of opening cash is entered i nto a register.
#fter a whole day0s transaction, the surplus money remaining in the cash counter is put "ack in the vault and known as the closing "alance. )oney is received and paid in this section. "ash Receipt:
)oney is received through cash with the help of deposit slip or through the negotia"le instruments. n receipt of pay in slipAcredit voucher the receive cash officer shall1 •
Check the title of #Ac, its num"er, amount in words and figures.
•
Deceive cash dully counted and checked.
•
:rite denomination of currency on the "ack of the pay in slip or credit voucher.
•
>eep cash in drawer during "usiness hours.
•
4nter particulars of pay in slip or credit voucher in the receiving cash officer "ook.
•
#uthori&ed officer check the particulars entered in the receiving ash officer0s "ook.
•
Send the pay in slip or credit voucher to the deposit department or to the respective department.
"ash pa!ment:
pon the receipt of the instrument for payment, the cash officer o"serves the following things1 •
$he date of the check
•
Signature of the account holder
•
:here the check is crossed or not
•
:here the check is endorsed or not
•
:here the amount in word and the amount in figure correspond or not
•
:here there is sufficient "alance or not
•
:here there is a stop payment or not
•
:here there is any legal o"struction or not ?i.e., arnishee rder@
If all the particulars are in order, the cash officer makes payment to the customer. #a! Order &#O':
It is like cash "ut not eactly cash. It is an instrument, which is issued from a certain "ranch of a "ank and must "e encased from the same "ranch. nlike check, there is no possi"ility of dishonoring pay order "ecause "efore issuing pay order "ank takes out money of the pay order in advance. It is not a negotia"le instrument "ecause it can0t "e endorsed or crossed.
6ay order gives payee the right to claim payment from the issuing "ranch. In other wards it is an undertaking "y the issuing "ank to pay a certain sum of money to the payee or to order on demand.
"ommission: free for account holder. ,ntries for #O:
"lients Ac;;;;;;;;;;;
$he following procedure should "e followed for refund of pay order "y cancellation1 •
•
•
•
$he purchaser should su"mit a written re'uest for refund of pay order "y cancellation attaching therewith the original pay order. $he signature of the purchaser will have to "e verified from the original application from on record. 6rescri"ed cancellation charges should "e refunded. Commission recorded for issuing the pay order should not "e refunded. $he 6 should "e affied with a stamp “cancelled” under proper authentication and dully signed "y authori&ed officer.
•
$he original entries are to "e reversed with proper narration.
•
Cancellation of the pay order should also "e recorded in the pay order register.
#fter receiving the document the officer inters them in a register kept in hisAher desk and distri"utes them to the appropriate sections. :hen papers or documents are sent for official purpose the officer enters them in another register, writes down the address in the envelop and sends t hem through proper channel.
+ispatch section of )irpur Branch performs another duty. It enters the transfer instruments in the scroll and sends those to the computer section. %ccounts Department of DBBL Mirpur Branch:
#ccount is the 1erve "enter of a "ank. #ccount department maintains all records of transactions and all types of statement. #t the end of transactions hour all concerned departments send to this department vouchers of transactions. $he account section of )irpur "ranch is fully computeri&ed. $he computer now maintains the ledgersP Computer also provides all the statements re'uired for the "ranches, head office and Bangladesh Bank.
#ccount department compares all figuresAamounts, contents of transaction with supplementary statement prepared "y computer. If any discrepancy arises regarding any transaction then this department reports to the concerned department. (ollowing are the activities if account department. •
$o record all transactions in the cash"ook.
•
$o record all transactions in the general and su"sidiary ledger
•
$o prepare daily fund position, periodic statements of affairs etc.
•
6repare necessary statement for reporting purpose
•
$o pay all ependiture on "ehalf of the "ranch
•
)ake salary statement and pay salary
•
Branch to "ranch fund remittance and supporting accounting treatment
•
Budgeting for "ranches
$he "ank mainly provides following services to customers. •
•
6rovide solvency Certificate 6rovide statement of affairs to customers. It is provided daily, weekly, monthly, and yearly also.
Letter of credit 3L4'5 Documentary 'redit:
etter of credit can "e defined as a !credit contract0 where"y the "uyer0s "ank is committed ?on "ehalf of the "uyer@ to place an agreed amount of money at the seller0s disposal under some agreed conditions. AC is also known as +ocumentary Credit. # documentary credit may "e revoca"le or irrevoca"le. ummar! of L" operation: •
•
$he "uyer and the seller conclude a sales contract providing for payment "y the documentary credit. $he "uyer instructs his "ank the “issuing” "ank to issue a credit in favor of the seller ?"eneficiary@.
•
•
•
•
•
•
•
•
•
$he issuing "ank asks another "ank, usually in the country of the seller, to advice or confirm the credit. $he advising or confirming "ank informs the seller that the credit has "een issued. #s soon as the seller receives the credit and is satisfied that he can meet its terms and conditions, he is in a position to load the goods and dispatch them. $he seller then sends the documents evidencing the shipment to the "ank where the credit is availa"le. $his may "e the issuing "ank, or the confirming "ank or a "ank named in the credit as the paying, accepting, or negotiating "ank. If the credit allows for negotiation "y any "ank, there will not "e a !nominated "ank0 and document may "e sent to any "ank willing to negotiate under the credit. $he "ank checks the documents against the credit. If the documents meet the re'uirements of the credit, the "ank will pay, accept, or negotiate according to the terms of the credit. $he "ank, if other than the issuing "ank, sends the documents to the issuing "ank. $he issuing "ank checks the documents and, if they meet the credit re'uirements, reim"urses in the pre agreed manner the confirming "ank or any "ank that has paid, accepted or negotiated under the credit. :hen the documents have "een checked "y the issuing "ank and found to meet the credit re'uirements as they are released to the "uyer upon payment of the amount due or upon other terms agreed "etween him and the issuing "ank. $he "uyer sends the transport document to the carrier who will then proceed to deliver the goods.
"arties of Documentary 'redit:
6arties to the documentary credit may "e an issuing "ank, an advising "ank, a confirming "ank or a negotiating "ank. Issuing bank:
$he issuing "ank or opening "ank is one, which issues the credit, i.e., undertakes, independent of undertaking of the applicant, to make payment provided the terms and conditions of the credit have "een complied with. $he payment may "e at sight if the credit provides for differed payment. 4specially the issuing "ank should satisfy him on the credit worthiness of the uniform customs and practices for documentary credit ?C6+C@-IC pu"lication no.<88 ed ition of 5;;*.
Advising bank:
$he advising "ank advises the credit to the "eneficiary authenticating the genuineness of the credit. $he advising "ank is generally situated in the countryAplace of the "eneficiary. "onfirming bank:
# confirming "ank is one which adds its guarantee to the credit opened "y another "ank, there"y, undertaking the responsi"ility of paymentAnegotiationAacceptance under the credit in addition to that of the issuing "ank. :hen the credit worthiness of the issuing "ank is in dou"t, "eneficiary0s "ank may re'uest the issuing "ank to give additional confirmation "y another "ank. It is said !#dd Confirmation0 in practice. 1egotiating bank:
# negotiating "ank is the "ank nominated or authori&ed "y the issuing "ank to pay, to incur a deferred payment lia"ility, to accept drafts or to negotiate the credit. Reimbursing bank:
# reim"ursing is the "ank authori&ed to honor the reim"ursement claims in settlement of negotiationAacceptanceApayment lodged with it "y the negotiating "ank or the accepting "ank. It is normally the "ank with which the issuing "ank has account from which payment to "e made. 'onclusion:
$his is a well esta"lished statement that practical situations always differ from theoretical eplanation. +uring the three months internship program at )irpur Branch of +utch Bangla Bank imited almost all the desks have "een o"served. #nd I have found theory deviates from the practice more or less though three months are not enough time to find out all the discrepancy "etween theory and practice. #mong all eperiences some noticea"le o"servations are descri"ed "elow1 $he officers were mostly courteous, friendly in nature and eager to help despite the tremendous workload. 4mployees are very mush loyal to the organi&ation. #s a private "ank +BB is trying it0s "est to etend their service to the pu"lic. # very good working environment was remaining in the +BB )irpur Branch. +uring the internship, it is found that the +BB )irpur Branch provides all kinds of commercial "anking services to its customers. eneral Banking is engaged in cash receipt and payment, check clearing, local remittance etc. I think the limitation +BB has is very insignificant compare to the strengths that +BB has. So when +BB overcomes these limitations-this "ank will "e in a far "etter position than previous years and where their will "e no competitors who can reach them. #s long as +BB continuous increasing their "ranches and as long as the y keep on updating their technology on competitor can stop them from going at the top. :orking with +BB for three months was truly an interesting eperience, which "rought me to the contact of the real life-"anking world and made it possi"le for me to compare the classroom theories with practical eperience.
+uring my practical orientation, I o"served the function of different departments of +BB thatP I "elieve will prove to "e a foundation "lock in my career as a professional "anker in future. It is a great pleasure for to have practical eposure in +BB. Because without practical eposure it couldn0t "e possi"le for me to compare the theory with practice. #nd it is well esta"lished that theory
without practice is "lind. +uring the practical orientation I have o"served the function of eneral Banking, (oreign 4change, and Credit department of +BB which help me a lot to "e a professional "anker in future. ut of the a"ove discussion a conclusion can "e drawn after saying that, the present customer dealing procedure is 'uite well at this moment. $he computeri&ed transaction makes the s ystem efficient and effective.
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ample Letter of .ransmittal $ransmittal letters are usually "rief. $he first paragraph descri"es what is "eing sent and the purpose for sending it. # longer transmittal letter may summari&e key elements of the proposal in one or two sentences and provide the recipient with other useful information. D.....
Report on Ratio Anal!sis # ratio is a way of comparing two or more 'uantities. #naly&ing any company0s current ration,'uick ratio,+e"t-4'uity ratio,ross )argin percentage, et 6rofit )argin,perating 6rofit )argin, +epreciation 4pense to perating epense ration,Inventory $urnover, $imes Interest 4arned is Dation ana.....
Assignment on "apital +arket of Bangladesh Capital market is a market for securities ?de"t or e'uity@, where "usiness enterprises ?companies@ and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place o n other markets ?e.g.,.....
Internship Report on "redit +anagement of hahjalal Islami Bank Limited 4ecutive Summary Banking is the "ack"one of national economy. It is a powerful medium to "ring socio economic changes in a developing country like Bangladesh. #s a part of its activity the "anks provide short, medium and long term credits. It has to complete it0s screening process to offer cre.....
Inventor! "ontrol F Eorking "apital +anagement at Berger #aint Introduction Berger 6aints Bangladesh imited ?B6B@ is a renowned paint company in Bangladesh. $he Company was introduced on = 3une 5;E* as a private co. limited "y shares registered under the Company #ct. In +ecem"er 788<, the company issued
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