American International University-Bangladesh (AIUB) INTERNSHIP INTERNSHIP AFFILIATION AFFILIATION REPORT ON “General Banking Activities of National Bank Limited ” An Internship Report Presented to the Faculty of Business Administration in Partial Fulfillment of the t he Requirements for the Degree of Bachelor of Business Administration (BBA) Supervised By: Mohammad Mohammad Faridul Alam Assistant Professor Faculty of Business Administration American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh. Submitted By: Turin Afroz Id No 08-11229-2 Major: Accounting & Finance American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh. Date of Submission: 19/04/2012
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INTERNSHIP REPORT ON “General Banking Activities of National Bank Limited ”
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Letter of Transmittal Transmittal
R.Tareque Moudud Director Office of Placement and Alumni (OPA) American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh Subject: Submission of Internship Report Dear Sir Here is the report paper on the topic of “General Banking Activities of National Bank Limited ” I have completed this report as part of my internship program. This report has been compiled as per your requirements and those set by the host organization. It gives me immense pleasure to tell you that working on this internship report has given me a wide range of exposure. This This report report is based based on the the knowl knowledg edge, e, exper experien iences ces and the skill skillss that that I have have acquired during my period of internship in Sign Vision Ltd. I am thus submitting this report with the hope that it lives up to your satisfaction. Howe Howeve verr I woul would d be glad glad if you you enli enligh ghte ten n me with with your your thou though ghts ts and and view viewss regarding the report. In addition, if you wish to enquire about any of the aspects of the report, I would be glad to answer your queries.
Sincerely,
___________ _______________ ________ ____ Turin Afroz ID: 08-11229-2
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Letter of Endorsements
The internship report entitled “General Banking Activities of National Bank Limited” has been been subm submit itte ted d to the the Offi Office ce of Place Placeme ment nt & Alum Alumni, ni, in part partia iall fulf fulfil illm lmen entt of the the requirements for the degree of Bachelor of Business Administration, Major in Accounting & Finance, Department of Business Administration on 19 April 2012 by Turin Afroz, Id No 0811229-2, The report has been accepted and may be presented to the internship defense committee for evaluation. (Any opinions, suggestions made in this report are entirely that of the author of the report. The university does not condone nor reject any of these opinions or suggestions).
-----------------------------------------------Mohammad Faridul Alam
Assistant Professor Faculty of Business Administration American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh
Acknowledgment iv
First of all, I would like to thank almighty Allah for his grace in accomplishing my internship report on time.
I would like to express my gratitude to my academic supervisor Professor Mohammad Faridul Alam from the core of my heart for his kind support, guidance, constructive, supervision, instructions and advice and for motivating me to do this report.
I am also thankful to all emlpoyees of National Bank New Eskaton Branch for giving me the opportunity to conduct the internship in National Bank Ltd. Bangladesh. I would like to thank to Senior Vice President Kazi Shamsul Alam, Vice President Mohammad Shahidul Alam, Alam, Senior Executi Executive ve Hosne Ara Rita for superv supervisi ising ng me and providi providing ng various various key information and giving me the path to write a fruitful report.
I am also grateful to the employees of all departments for their cordial acceptance. They have been very helpful in showing me the work process and provided relevant information for my report report whenever whenever I approa approached ched.. It was a great great opport opportunit unity y to do interns internship hip in such such an organiz organizati ation. on. The experience experience I have gathered gathered will will be a privil privilege ege for my future future career career planning. planning.
Executive summary Banking sector sector is one of the constant financial financial institutions institutions of a country. country. Due to globalization globalization and technol technologi ogical cal change changes, s, they they give give effectiv effectivee real real time time service service to their their custome customers. rs. A country country is financially financially rich when it has modern modern financial financial institutions of its own. These institutions institutions play a vital v
role in the field of financial stability of a country. National Bank Limited pursues decentralized management policies and gives adequate work freedom to the employees. This results in less pressure pressure for the worker and acts as a motivational motivational tool for them, which gives them, increased increased encouragement and inspiration to move up the ladder of success. Overall I have experienced a very friendly and supporting environment at National Bank Limited which gave me the pleasure and satisfaction to be a part of them for a while.
The overall approach of the report is a descriptive one as it goes into the depth of service quality of National Bank Ltd. Here both primary primary and secondary secondary information information were used. Interview Interview was the basic techniques techniques comply comply to collect primary primary data from any people people within the organization. organization. Information about the varieties of activities within the correspondent banking department was colle collecte cted d troug trough h inter intervie viewe wed. d. Among Among the seco seconda ndary ry sour source cess to colle collect ct data data regar regardin ding g the company’s performance over the past six years are publications, Annual reports of Banks Ltd. Different circulars and papers of National Banks Ltd, Term papers of NBL training manuals, Guidel Guidelines ines for Foreig Foreign n Exchange Exchange Transac Transactio tions, ns, Genera Generall Banking Banking Operat Operation ion manual manual,, Banking Banking Lecture sheet within the organization helped me to gather data about the organization. Different Problems, suggestions, recommendations have come at the end of the report. The Problem findings during during the three-m three-month onth long long interns internship hip period period and sugges suggestion tion are given given from from observa observation tion,, comparative analysis, strategic point of view etc. To increase the efficacy in customer service National Bank Bank Ltd should try to develop the process of providing services. services. National National Bank Ltd has passed passed a long way science science it is providing providing services. services. Already Already it has earning earning a strong strong positioned positioned in the field of customer services. To continue the hold position and be perfect in this sector it will have to keep more and more attention to the customer retention and development. So the result of the study should be taken as indicative rather than conclusive.
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Table of Contents Letter of Transmittal………………………………………………………………. Letter of Endorsement……………………………………………………………... Acknowledgement………………………………………………………………….. Executive Summery…………………………………………………………………
Chapter 1: Intrduction to the Report…………………………………………………. 1.1 Rationale Rationale of the Study…………………………………… Study………………………………………………………. …………………. 1.2 Objectives Objectives of the Report………………………………… Report……………………………………………………. …………………. 1.3 Background Background of the Organization………………………………… Organization……………………………………………. ………….
Title of the Report: General Banking Activities of National Bank Limited
Chapter 1: Introduction to the Report
Chapter 1: Introduction to the Report 1.1 Rationale of the Study
Theoretical knowledge never equips with all the skills he/she requires in the practical field, and theref therefore ore practi practical cal real real world world experi experience ence is requir required. ed. Interns Internships hips provide provide an opport opportunit unity y for students to link theory with practice and further serve as a temporary labor pool for those agencies that have committed to participate in the internship program. The department fulfills its mission of preparing preparing students for significant significant professional professional and managerial managerial positions in the public sector. sector. This
program program and final report will enable the student to compare compare theoretical theoretical ideas taught in the classrooms in the complex business environment. Ther Theree could could be a great great oppo opport rtuni unity ty in term termss of job pros prospe pect ctss as this this prog progra ram m prov provide idess the the experience in actual public environments just before entering the job market. In the conte context xt of Bang Bangla lades desh, h, the the busine business ss,, more more part partic icula ularl rly, y, the the comm commer erci cial al banks banks are are dominating in the business world. Professional behaviour is really an important skill in these business business areas and this internship internship program program will harness harness to achieve that skill. skill. Both globally globally and locally, at present banking business is facing more and more competition due to more globalization and technical advancement where Bangladesh is not the exception. Due to rapid shifting of banking business, business, there has been acute importance importance of proper professionalism professionalism for continuing continuing this business business while while keeping pace with with fast advancement advancement and to to survive survive in the global global competit competition. ion. Apart from only lending and borrowing money, there have been loads of activities accomplished by banks and those activities activities require skill, knowledge knowledge and pure professional professionalism. ism. BBA equips a graduate with required theoretical knowledge, where, to gain up-to-date skill, practical experience internship in banking business completes the roadmap for a student to his/her for continuing the journey in in the rapid rapid changing changing business business and gaining gaining the the required required professiona professionalism. lism. In this internship program, program, I was not just only observing how people were working, working, rather I was a part of team of National Bank Ltd with all my responsibilities responsibilities from my very first day. There have been lot of meaningful meaningful projects projects and targets targets set by the bank management management and I had the time and space to make them count. This has given me the opportunity to learn job responsibility and accountability. Additionally, being involved with the teams, leading and following members, meeting talented and real professional people, developing innovative ideas were really crucial for me and added many great values in my CV and all the skills are really transferable while I will be seeking employment in the related areas of banking business. 1.2 Objectives of the Report
Mainly the objective of this report is to review and analyze the general banking activities of National Bank Bank (the branch of Dilkusha). Dilkusha). This will cover the various services services of the banks for their
client clients, s, benefits benefits,, their their operat operation ion and managem management ent of their their differe different nt activit activities ies and also also some some recommendations for developments if require after reviewing.
Beside the main objective, this report aims to apply my theoretical knowledge in the practical field which is achieved in my academic level from my course and to fulfill the partial requirement of the BBA program form the department of accounting and finance. Additionally, this program will have a target of knowing about the general and advance banking activities of National Bank, bridging between between theory and practical practical banking day-to-day day-to-day activities activities and evaluating evaluating their operation operation and management. It will also cover some common inefficiency of their banking system and lastly will put some some recommendat recommendations/su ions/suggesti ggestions ons for further further development development while while solving solving the problems problems..
1.3 Background of the Organization
National Bank Limited Limited Limited Limited has its prosperous prosperous past, glorious glorious present, present, prospective prospective future and under processing projects and activities. Established as the first private sector bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage passage of time after facing many stress and strain. strain. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution, automated all its branches with computer networks in accordance with the compet competiti itive ve commer commercial cial demand demand of time. time. Moreove Moreover, r, conside considering ring its forthforth-com coming ing future future,, the infrast infrastruc ructure ture of the Bank Bank has been been rearra rearranging nging.. The expect expectatio ation n of all class class business businessmen men,, entrepreneurs and general public is much more to NBL. At present N.B.L. have 145 branches under their branch network. NBL was also the first among domestic domestic banks to introduce introduce international international Master Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology technology services of SWIFT and REUTERS. REUTERS. NBL has been continuing its small credit programmes for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their livelihood. The then then Presid President ent of the People People's 's Republ Republic ic of Bangla Bangladesh desh Justic Justicee Ahsanud Ahsanuddin din Chowdhur Chowdhury y inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial
Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. New Eskaton Eskaton branch of NBL was established established in 2001 and the branch has achieved the confidence confidence immediately after its establishment by providing superior quality service with sincerity. The branch is located at the central point of New Eskaton of Dhaka city. I have experienced a very friendly and supporting environment at NBL which gave me the pleasure and satisfaction to be a part of them for a while. NBL at a Glance:
Date of incorporation
:
23rd March, 1983
Commencement of operation
:
28th March, 1983
Nature of of Business Business
:
Financial Financial Banking System
Slogan
:
Performance With The Potential
Target customers
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Corporate customers & salaried person
Authorized capital
:
TK. 7450 million
Paid up capital
:
TK. 2847 million
Deposits, accumulated (2009)
:
TK. 66685.25 million
General Investment (2009)
:
TK. 13069.85 million
Investments (Shares, Bonds)
:
TK. 13069.85 million
1.3.1 Vision of NBL
Ensuri Ensuring ng highest highest standar standard d of cliente clientele le service servicess throug through h best best applic applicati ation on of latest latest inform informatio ation n technology, technology, making due contribution contribution to the national economy and establishing establishing ourselves ourselves firmly firmly at home and abroad as a front ranking bank of the country have been our cherished vision.
1.3.2 .3.2
Missi issio on of NBL
NBL’s missio mission n is to continue continue our support support for expansion expansion of activities activities at home home and abroad by by adding new dimensions dimensions to our banking services services which have been been ongoing ongoing in an unabate unabated d manner. manner. Alongs Alongside, ide, NBL are also also putting putting highest highest priori priority ty in ensurin ensuring g transp transpare arency, ncy, account account ablilit ablility, y, improved clientele service, as well as our commitment to serve the society through which we want to get closer to the people of all strata. strata. Winning an everlasting seat seat in the hearts of the people as a
caring companion in uplifting the national economic standard through continuous upgradation and diversification of NBL’s clientele services in line with national and international requirements is the desired goal we want to reach.
1.3.3 Goals and Objectives of NBL
NBL is always ready to maintain maintain in the highest quality quality of services services by upgrading upgrading banking technol technology ogy prudenc prudencee managem management ent banking banking and by applyi applying ng high standar standard d of busines businesss ethics ethics through its established commitment and heritage.
To build up a deep-rooted and harmonies banker-customer relationship by dispensing prompted prompted improved improved service servicess to the clients. clients.
To make best use of hard-earned investment of our valued shareholders. Simultaneously, play our due part in developing developing a vibrant capital capital market by ensuring ensuring more effective effective participatio participation n of the Bank Bank in the the share market. market.
To make best use of latest technologies technologies for giving the clients a taste of modern banking so as to encourage them to continue and feel proud of banking with NBL.
To respond to the need of the time by participating in syndicated large loans financing, thereby expanding the area of investment of the Bank.
To gain confidence of all quarters involved in the economic development of the country through pursuance of a policy of continuous adjustment and coordination of the Bank’s external trade programmers with the dynamism inherent in the international trade and payments payments system. system.
1.3.4 Business Strategies of NBL
To manag managee and oper operate ate the the bank bank in the the most most effi effici cient ent manne mannerr to enhanc enhancee fina financi ncial al performance performance and to control control cost of fund.
To strive for customer satisfaction through quality control and delivery of timely services.
To identify customer credit and other banking needs and monitor their perception towards our performance in meeting those and update requirement.
To review and update policies procedures and practices to enhance the ability to extend better services services to to customer. customer.
To train and develop all employs and provide them adequate resources so that customer needs can responsibility addressed.
To promot promotee organiz organizatio ational nal effecti effectivene veness ss by openly openly communi communicat cating ing company company plans, plans, policies, policies, practices practices and procedures procedures to all all employers employers in a timely timely fashion fashion
To culti cultiva vate te a work working ing envir environm onment ent that that fost foster erss posi positi tive ve motiv motivat ation ion for for impr improv oved ed performance performance
To diversify portfolio both in the retail and whole sale market.
To increase direct contact with customer in order o cultivate a closer relationship.
1.3.5 Core Values of NBL
National Bank’s core values consist consist of six elements. elements. These values bind people together with an emphasis that people are essential to everything being done in the bank. They believe that, they create new value by forming teams of specialist in various fields and providing optimal services to their customer.
Figure 01: Core value of NBL Integrity:
NBL protects protects and and safeguards safeguards all customer customer information. information.
NBL treats treats everyone everyone in an equitable equitable and and consistent consistent manner. manner.
NBL creates creates an environme environment, nt, which which earns and and maintains maintains customer customer trust. trust. Open Communication:
NBL builds builds customer customer relatio relationships nships based based on integrit integrity y and respect. respect.
NBL offers offers a full full line line of products products and and excellent excellent service. service. NBL is committed committed to the the prosperity prosperity of the customer customerss and shareholder shareholders. s. Performance Driven: In NBL, customers and employees are judged in terms of their performance. Continuous Self Improvement: Continu Continuous ous learnin learning, g, selfself- challen challenges ges and strive strive make ways ways for self self improv improveme ement nt of workforce at NBL. Quality: NBL offers offers hassle hassle free better service service timely.N timely.NBL BL builds-up builds-up quality quality assets assets in in the portfolio portfolio.. Team Work: Interact Interaction, ion, open open commun communicat ication, ion, and maintai maintaining ning a positiv positivee attitud attitudee reflec reflectt NBL’s NBL’s commitment to a supportive environment based on teamwork.
1.3.6 Business Goal
To patronize, sponsor and encouraged encouraged games and sports, sports, entertainment entertainment and other socio-economic socio-economic activities alongside providing the best services to the client.
1.3.7 Growth and Development of NBL
The The NBL NBL carr carrie iess out all all tradi traditi tiona onall funct functio ions, ns, whic which h a comm commer erci cial al bank bank perf perfor orms ms such such as mobilization of the deposit, investment of funds, financing export and import business, trade and commerce and industry.
The banking sector in the country faced different problems thought the year. Even through the board and management management never stopped stopped its effort to maximize maximize wealth, wealth, which is reflected reflected by 143.97percent profit growth in 2007, highest ever in the last 15 years. The bank earned the 676.45 core revenue in 2007 as interest, income from investment and commission & exchange earning, which who Tk. 530:69 crore in the provision year. As a result the total operating profit rode to Tk. 221.51 crore in 2007 from Tk.114.68 crore in the previous year.
1.3.8 Form of Organization:
1.3.8.1 Board of directors d irectors
In NBL, the board of directors has been conceived as the sources of all power headed by its Chairman. It is a legislative body of the bank .Board can delegate its power and authority to professional professional but but cannot delegate, delegate, relinquish relinquish or avoid avoid their respons responsibilit ibilities. ies. Board of Directors of NBL:-
Mr. Zainul Haque Sikder Ms. Parveen Haque Sikder Alhaj Khalilur Rahman Mr. Moazzam Hossain : Prof. Mahbub Ahmed Mr. Zakaria Taher Mr. Ron Haque Sikder : Mr. Rick Haque Sikder Mr. Mabroor Hossain Mr. A K M Enamul Hoque Mr. Salim Rahman Lt. Col.(Rtd) Md. Azizul Ashraf Capt. Abu Sayeed Monir Mr. Md Abdur dur Rahma hman Sarker
1.3.8.2 Management Hierarchy of N.B.L. :
: Chairman : Director : Director Director : Director : Director Director : Director : Director : Director : Director : Director : Director : Manag naging Directo ctor
Chapter 2:
Activities Undertaken
Chapter 2: Activities Undertaken 2.1 Work Work Related Activiti Activities es
General Banking
Financial institution/ intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking
deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms.
General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined confined to provide the service everyday everyday general banking is also known known as retail retail banking. banking. The various various jobs underta undertaken ken by a bank could be repres represente ented d in the following way:
In the case of the NBL Eskaton branch, I found the following section of general banking activities of NBL. at New Eskaton branch. •
Account Opening
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Dispatch
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Cash Department
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Accounts Department
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Loan and Advances Department
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Clearing Department
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Bills for Collection
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Deposit
•
Remittance
All the employees of New Eskaton branch helped me to complete my job and I tried to describe my knowledge, which I gathered from my internship period.
2.1.1 Account Opening Section
Account opening procedure of NBL is very good. They collected all the necessary documents whenever they open an account. Only five to ten minutes are required to open an account if all the documents are correct. This branch has lots of deposit compare with other bank in New Eskaton area. Peoples are willingly comes to open an account in this branch. They don’t need to force or convince to their client client to open an account in their branch. A bank has to maintain different different types of accounts for different purposes. NBL offers the general deposit products in the form of various accounts accounts.. There There are some some negative negative sides sides also also of their their account account opening opening activit activities ies.. Someti Sometimes mes peoples peoples are highly highly dissatis dissatisfied fied whenever whenever they they found that that lots of of information information they they have to provide provide.. There are different types of accounts offered by NBL for its target’s groups. These are shown as below.
2.1.1.1 Saving account (SB)
NBL offers offers customers customers a hassle free and low charges charges savings account through through the branches all all over Bangladesh. Savings account is that account whose interest rate is higher then current account and saving account holder can withdraw two times in a week. Savings account can be open by individual, joint name or club, society, association etc.
Rules for opening saving account:
Account opening money at least 5000 taka
If depo deposi sitt hold holder er want wantss to clos closee his his acco accoun untt then hen he sho should uld pay pay 100 100 taka aka as cancellation charge
Savings account interest rate is 6 %
Depositor can’t withdraw money more than two times in a week
In the case of savings account Cheque book is 10 leaves
Benefits of saving account:
Interest rate of 6.00% on average monthly balance
Minimum balance Tk.1000
Maintenance charge yearly Tk. 460
No hidden hidden costs Standing Instruction Arrangement are available for operating account
Requirements for opening individual saving account:
An introducer who maintaining an account in the bank
2 copies of recent pass port size photo of the account holder
Valid photocopy of Voter ID Card
Pass port number (if any)
TIN number (if any)
Name of nominee
Nominee's Nominee's Photograph Photograph
Two signatures on the specimen signature card
Requirements for opening joint saving account:
An introducer who maintaining an account in the bank
Two copies pass port size photo (both parties)
Valid photocopy of Voter ID Card
The amount can be received by any person signature or two person’s signature jointly
2.1.1.2 2.1.1.2 Current Current account account (CD) (CD)
NBL offers customers customers current deposit deposit facility facility for day-to-day day-to-day business business transaction transaction without without any restriction
Current account is that type’s account where depositor can withdraw his deposited money at any time there is no restriction. Current account can be divided into following such as:Individual current account Proprietorship current account Partnership current account Current account for Limited Companies
In the below given the requirements which are need for opening current account: Requirement for individual current account:
Two copies passport size photo
An introducer, who have an account in NBL, New Eskaton Branch.
Ward commissioner or chairman certificate or national ID card.
Mention sources of earnings.
Requirement for proprietor current account:
Trade license
TIN number
An introducer, who have an account in NBL, New Eskaton branch
Seal of the applicant required
Ward commissioner or chairman certificate or National ID card.
Requirement for current partnership account:
Partnership agreement
Trade license
An introducer, who have an account in NBL, New Eskaton branch
Ward commissioner or chairman certificate or national ID card.
Requirement for Current account for limited companies:
Memorandum and articles of association of the company
Power of attorney
Resolution of the board of directors.
Following documents which is certified by the chairman of the company:
List of directors
Certificate of commencement of business
Certificate if incorporation.
2.1.1.3 Monthly Saving Scheme (MSS)
NBL offers monthly savings scheme for it's retail customers. customers. Monthly Monthly saving scheme (MSS) is specially offer for limited income group peoples, students. This MSS account help to accumulate in hand sum amount at the end of maturity date of MSS. Sl no
01 02 03
Amount to be paid on completion of Term Monthly Installments 3(Three) years 5(Five) years 8(Eight) years (Taka) @9.00% @9.25% @9.50%
500/1,000/2,000/-
20,627/41,255/82,510/-
37,896/75,791/1,51,583/-
70,849/1,41,691/2,83,394/-
04 05 06 07
3,000/1,23,765/2,27,374/4,000/1,65,020/3,03,166/5,000/2,06,274/3,78,957/10,000/4,12,549/7,57,914/Table 07: Benefits of MSS on different monthly installments
4,25,091/5,66,788/7,08,485/14,16,970/-
2.1.1.4 Fixed Term Term Deposit Deposit account account (FDR) (FDR)
Fixed term deposit (FDR) application form has been used both for application form and as a credit voucher for the bank. In case of FDR specimen signature card used and client give three signatures on the specimen card. In the case of FDR it is clearly mention that when this amount will be withdrew account holder receive principle amount plus interest.
2.1.1.5 Short Term Deposit (STD)
Short term deposit account interest is calculated at daises and its interest rate is 7.00 %. Requirement for opening short term deposit:
Two copies of pass port size photo.
TIN number
An introducer who has an account in NBL, New Eskaton branch.
Trade license.
Ward commissioner or chairman certificate.
2.1.2 Dispatch
The main function of dispatch division is dispatching all types of documents such as OBC, LBC, and diff differ erent ent type typess of lett letter er,, diffe differe rent nt advic advice. e. Besi Beside de disp dispat atch ch divis division ion rece receive ivess lett letter er and documents, which are may be coming from head office, all other branches of NBL, other banks, negotiation and opening bank (in case of Import and Export) in the name of NBL, New Eskaton branch. The The officer officer engaged engaged in the dispatch dispatch divisio division n maintain maintain two types types of mail, mail, which which is
Inward mail
2.1. 2.1.3 3
Outward mail
Cash Cash Depa Depart rtm ment ent
In cash department two types of activates has done which as follows:
Cash receiving
Cash payment
When depositor wants to withdraw his money then he present or order cheque for withdrawing cash from cash counter. At first deposit holder present his cheque on the computer desk. Then the authorized officer checks that cheque and amount has been balance in his account. When every things right then the amount has been debited from the depositor account on which the cheque has been drawn. If there is any doubt in the signature signature which has been appeared appeared on the specimen specimen signature card has verified. When everything ok then payment seal put on the cheque. Then bearer has signed on the back side of the cheque and authorized officer made payment. The authorized officer must have to maintain cash payment register.
The components of cash payment register book are following:-
2.1. 2.1.4 4
Cheque number
Account number
Payment amount
Authorized signature
Payment date
Acco Accoun unts ts Depa Depart rtm ment ent
Accounts division is the most important for all banks. In accounts division maintain all types of accounting procedures of New Eskaton branch and support the branch to take different types of initiatives by providing various data and information.
Functions of Accounts division:-
Prepare daily statement of affairs
Give posting of voucher in computer.
Maintain transfer book
Prepare supplementary
Prepare daily, weekly, monthly, and quarterly, half yearly and annual statement
Reconciliation of CIBTA
Prepare advice
Prepare incomes and expenditures statement
All administrative work
When accounts officer receive any types of voucher then he has to identify whether it are
Clearing
Cash
Transfer
Clearing: When accounts officer receive clearing voucher then he send it to the clearing division. Cash: When accounts officer receive cash voucher then payment made by clients. Transfer: When accounts officer receive transfer voucher that means this amount should be
transfer one account head to another account head. In this case accounts officer register it in register book before computer posting. Before register this voucher in register book officer put a serial number that is register in register book. In transfer register book contains debit and credit side, particulars and amount. End of banking hour accounts officer calculate the transferred amount and debit balance and credit balance should be equal and he make sure that the debit balance and credit balance of transfer, clearing and cash position should be same figure. Every day accounts division prepared daily statement affairs and send them to every department.
2.1.5 2.1.5
Loan Loanss and and Adva Advanc nces es Depar Departm tment ent
Loan: An arrangement in which a lender gives money or property to a borrower and the borrower
agrees to return the property or repay the money, usually along with interest, at some future point(s) point(s) in time. Usually, Usually, there is a predetermine predetermined d time for repaying repaying a loan, and generally generally the lender has to bear the risk that the borrower borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).
2.1.5.1 Home Loan
NBL offers offers home home loan facilit facility y for purchasing purchasing flats flats or construction construction of house. house.
Grace period is available up to 9 months for flat purchase or 12 months for construction
Competitive interest rate
No application application or processing processing fee fee
Eligibility: Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan.
financial support support to small businessmen/ businessmen/enterpr enterprise ise with new 2.1.5.2 2.1.5.2 SME Loan NBL offers financial products products named "Festival "Festival Small Business Business Loan" and "NBL Small Business Business Loan" has been introduced in the Bank. Eligibility: Any genuine genuine and small small busine businessm ssmen/ en/ entrepr entreprene eneurs urs/ent /enterp erpris risee having having honesty honesty,,
sincerity, and integrity. The products of National Bank with their financing items under LOS loan are given below:
Household Durable Loan: Motor Cycle, , Personal Computer, Photocopier, Fax
machine, Small PABX system, Television, Mobile Phone set, Refrigerator, Audio-video equipment, Other home electric appliances, Furniture and any other household items.
Car Loan: Loan:
Car, Car, Jeep Jeep,, Stat Station ion Jeep Jeep,, Pick Pick up, up, Van, Van, Cove Coverr Van, Van, Bus, Bus, Truc Truck, k,
Ambulance and any other vehicle for own use.
Doctors Loan: For the Doctors only.
Advance Against Salary: Any qualified person
Education Loan: For Study purpose only.
Travel Loan: For traveling purpose.
Wedding loan: For wedding only.
CNG Conversion Loan: To convert into CNG.
Any Purpose Loan: For emergency need.
Hospitalization Hospitalization loan: For treatment in hospital.
2.1.6 Clearing division
The scheduled banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central bank where every day the representative of the member banks gather
to clear the cheques. The place where they meet and settle their dues is called the clearing house. The clearing house sits for two times a working day. The members submit the claimable cheques in the representative desks of the banks and vice –versa. Consequently the debit and credit entries are given. At the end debit summation and the credit summation are calculated. Then the banks clear the balances through the cheque of the Bangladesh bank. The dishonored cheques are sorted and returned with the memo. NBL, New Eskaton Eskaton branch receive receive cheque, demand demand draft, pay order order from their their clients for clearing. clearing. It has been seen that when the instrument of other banks have deposited in the NBL, New Eskaton branch. Clearing are Two Types; 1. Outward Clearing & 2. Inward Clearing Outward Clearing:
Cheques that are drawn on other bank & deposited by customer to a bank for onward collection within the clearing zone is the outward clearing for that bank. Inward Clearing :
Receiving of cheques by a bank that are drawn on themselves &sent for collection by other bank is the inward clearing for that bank. As such, what is “Outward Clearing for the Collectin Collecting g Bank & Inward Clearing for the Paying Bank” Clearing House: Clearing house is a place where member- banks meet to hand over cheques.
Central Clearing in Flow Chart
Bangladesh Bank Dhaka Bank Ltd. (Clearing House) Local Branch Exchanging of Cheques
National bank Ltd. Local Brach
Dhaka Bank Ltd.
National bank Ltd.
Dhanmondi Branch
Motijheel Branch Figure: Clearing Activities of NBL through BB
2.1.7 Bills for Collection: Collection:
A bill drawn & payable in Bangladesh is inland Bill.. A bill not so drawn or made payable is a foreign bill. Cheque, Pay Order, Demand Draft, Pay slip & SDR are the usual forms of inland bill (a). Local Bills for Collection (LBC): These are the bills to be collected from the same banks
other branches within that clearing zone. (b) Outward Bills for Collection (OBC): (OBC): OBC means collection of bills from own out stationed
branch or other bank. bank. Same procedur proceduree shall be be for OBC OBC as is done done in case case of LBC LBC in addition. addition. (c) Inward Bills Bills for Collection Collection (IBC): The bill may also be sent to the 2nd collecting branch for
onward collection through clearing. 2.1.8 Deposit
Deposit is the Heart of Bank. Banks are based on collection of Deposit. Deposits are the foundation upon which banks thrive & grow. Bans become the owner of the deposit money. In NBL New Eskaton Branch Various Types of Deposits are : Current Account Savings Account Fixed Deposit
Monthly Savings Savings Scheme Scheme (NMS) (NMS) NBL Monthly Monthly Income Scheme (MIS) Double Benefit Scheme (DBS)
Millionaire Deposit Scheme (MDS) Special Notice Deposit (SND) School Banking Serious Savers Account (SSA) Super Savers Term Deposit Account (SSTDA)
In National Bank New Eskaton Branch, they follow A to Z Software which perform Better service to the customer in Deposit Department. 2.1.9 .1.9
Remittance
Remittance is one of the main components of Banking. The remittance section is plays a very vital role in case of banks customer service section. Remittance means transfer of money from one place to another. It is one of the safest ways to transfer money from one place to another. NBL has 91 brunches brunches so they have strong network through whole country and they can easily reemit money most of the districts with in the country. For transferring money NBL. offer different instruments such as:
Telegraphic transfer (TT)
Pay order (PO)
Demand draft (DD)
Pay slips (Ps)
2.2 Organization Wide- Other Departments Divisions of NBL: 2.2.1 Finance & Administration Division (FAD)
This division can be called the central account division because all the account related activities are done here. All the branches send their monthly statement to the head office. In this division, annual closing statements is used, which prepares monthly position of the bank in cumulative basis. The in charges of the branches are requested to ensure completion of annual closing of accounts and preparation preparation of all statements and returns accurately accurately as per following following detailed programmed. programmed. It may
be mentioned mentioned here that from the annual closing closing statement, statement, to prepare prepare balance sheet, sheet, profit and loss account, cash flow statement, statement of change in equity and liquidity statements according to bank companies companies act. act.
2.2.2 Credit card Division
The bank sets distribution any for implementation purpose of its credit card service. This division controls all activities dealing with operation of credit card. The bank has implemented its credit card on March 20, 1997.
2.2.3 Tax Department
This new and special department is formed for the purpose of monitoring all activities related to tax of Government. They always takes steps as a way that will be easy to follow for their branches according to the rules and regulations of taxation. For this reason this department always keeps proper proper communicatio communication n and relation relation with with Bangladesh Bangladesh Bank and and National National Board Board of Revenue Revenue (NBR). (NBR).
2.2.4 Offshore Banking 2.2.4.1 Foreign Exchange
Foreign Foreign Exchange is the means and methods by which rights to wealth in a country’s country’s currency. In banks when we talk of Foreign Exchange, Exchange, we refer to the general mechanism mechanism by which a bank converts converts currency of one country into that of another. Foreign Exchange Department Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with Foreign Exchange 2.2.4.2 SWIFT (Society for World –Wide & Financial Telecommunication)
For the benefit of their client, NBL gives opportunity opportunity by providing providing Traveler Cheque to those who want go abroad. For that they work as an agent of American Express Bank and sell travel cheque of AMEX to their clients. NBL has become the member of SWIFT.
The activates of SWIFT have been started from last December 2000. Now the transfer of ExportImport documents and such other messages become very easier and shorter.
2.2.4.3 Foreign Remittance
In National Bank New Eskaton Branch there are following types of foreign remittance. This are
NBL Quick Quick Pay
Western Union Money Transfer
Samba
Quick Express
Global Instant Pay
DIIT etc.
2.3 Other Related Activities: 2.3.1 Corporate Social Responsibilities of NBL :
It is important that citizens of a society enjoy the full benefits that society offers. A society, in turn, flourishes when its citizen can contribute their fullest potential. The well-being of individuals is jeopardized jeopardized when normal developmental developmental processes processes are interrupted interrupted by personal personal crisis, crisis, poverty, poverty, unemployment, poor health and inadequate education.
Chapter 3:
Constraints/challenges and proposed course of action for the improvement
Chapter 03: Constraints/challenges and recommendations for improvement
Every research work has to face some limitations while conducting various research activities in various extents. There was no exception in the case of me while I was pursuing my internship program. program. I had to come across many challenges challenges to acquire the exact outcome from my activities. activities. Basically the challenges I faced could be categorized in two types. a.
Problems identified in the organization.
b. Problems Problems due to lack lack of adequate adequate and approp appropriate riate academic academic prepara preparation. tion.
3.1 Problems
identified in the organization:
There were some constraints or limitation inside the organization and they could be categorized as, i.
Limi Limita tati tion onss face faced d by me, me, and and,,
ii. Limita Limitatio tions ns of of the the orga organiza nizatio tion n 3.1.1 Limitations faced by me:
While working in the National Bank, sometimes this place seemed to me as very challenging place to work for me. I experienced the reality of current challenge of the present job market which moves on more intensely due to the increasing competition. This part of the report will emphasis on the factors of challenges faced in the organization. •
National Bank is a big organization in general term and there are lots to be considered to study their general banking activities activities thoroughly. However, picking all the aspects of their overall activities and covering everything precisely was a real challenge for this report.
•
Regular interaction interaction with the officials officials was the pre-condition pre-condition of getting various information information about banking activities. As the bank officials were busy in their own role, it was difficult to discuss with them about various important things.
•
A company should obey its policy and therefore, National Bank has to maintain the secure and restricted internal environment for the safety of the company. Getting access to the people is a matter of maintaining maintaining great precaution precaution for their safety, and hence, there will be many restrictions for a student or intern for getting to them as an outsider. On the top of this it, keeping the bank’s various information or data secured is one of the most important issues. Therefore, Therefore, there was no certainty certainty of gaining all the important important information information required required for this report. Even, some important was totally restricted due to the suspicion of security breach. Hence, getting access to limited people and limited information were some significant factors of challenges.
•
A study on like this topic may take significant amount of time where this internship had to be accomplished accomplished within limited limited three months of time as required required by the university. university. The university requires ample amount of work within such a short time and this was a great challenge for me and providing with all required information was impossible in some extents.
Recommendation for Improvement:
Although there are various problems or limitations faced by me during my internship inside the organization, organization, there could be some dedicated dedicated research divisions to collaborate collaborate with the researchers whether they could be from the bank inside or students or any researchers from outside. This will facilitate getting access to some concern people or department for information solely for the research and co-operate the interns, students or any researchers. The short span of time for such a big research is not always enough therefore the University could consider the time duration for the internship program. 3.1.2 Limitations observed in the organization •
The banking system system seemed seemed to me as very very traditi traditional onal and modern modernizat ization ion was hardly observed.
•
Despite the good banking service, sometimes customer service was not up to the level to some extents. Lack of research, survey and feedback system with the customers is big factor in the bank.
•
As part of modern banking, their ATM booth service is not to the expected level yet.
•
It has been seen that they use very short version of check books.
•
Compared to other competitors their products and service was not that competitive and for this they might face liquidity in future due to withdraw of their significant amount of money.
•
Employee’s satisfaction is one of the most crucial factors in an organization. However, it has been observed that the salary was not to satisfactory level after interviewing some staffs.
Recommendations for improvement:
National Bank should focus on inclusion inclusion of modern banking technology technology including including more ATM machines. In the branch I worked with should introduce POS machine so that customers do not need check always to withdraw money. Customer service is fundamental and to keep the customers with them the service and product should be competitive and attractive. They should also include survey, research and feedback system for the customers for further improvement. Fairness for all the employees is mandatory for going ahead and this bank should ensure the correct salary and reward for all class of employees.
3.2 Problems Problems due to lack of adequate and appropriate appropriate academic preparation: preparation:
The main objecti objective ve of an interns internship hip program program is to make make the bridge between between the theoretica theoreticall knowledge and implication of it in the practical professional life. There are number of courses have been undertaken during my BBA program in AIUB and I have chosen accounting and finance as major because of great importance of this field in the current professional life. Nevertheless, all the courses I have undertaken might not match precisely in the practical field and I have come across a numbers of relevance and mismatches during pursuing my internship program. 3.2.1 Mismatches with my academic preparation:
In many many cases, cases, I have experienc experienced ed mismat mismatch ch with with my academic academic courses courses while I was doing internship program. This is because the university does not always provide the practical knowledge and I found a few courses those focus on banking activities solely. In my BBA course I had to gain knowl knowled edge ge in variou variouss broad broader er aspe aspect ctss inclu includi ding ng finan finance ce,, accoun accounti ting, ng, budge budgeti ting ng,, capi capita tall management, taxation, auditing where very few of them deeply focuses on banking activities. Also,
the university always emphasis on the theoretical knowledge and I had not much scopes for gaining much practical knowledge on banking activities. Some Recommendations:
To equip a student with more practical knowledge, a university could provide with some practical knowledge with some precise and specific courses or training which will be more effective for the student for his/her professional life. 3.2.2 Relevance of the academic preparation or major to the present assignment and future job requi requirem rement ent of of the orga organiza nization: tion:
Despite Despite many mismatches mismatches with my academic academic preparation, preparation, I found some courses those were really useful as I needed the theoretical knowledge of those course while I was doing the internship program program on banking activities activities of the National Bank. Bank. From all the courses few could be mentioned and they are: i.
Finan Financia ciall Mark Markets ets and and Insti Institut tution ions: s:
This course was basically about various characteristics of financial institutions and market including banks. I found this course useful for the internship program, as I have acquired knowledge about how a financial institution i.e. bank plays vital role in the financial market through its day to day banking activities. ii. Bank Bank Fund Fund Manag Managem ement ent::
This course provided me with the knowledge on the financial management of a bank to protect a bank from bank liquidity and failure. While I was doing my internship program, I had the chance to look into the activities of the National Bank and their financial management was a fundamental part of these activities. The knowledge I gained from the course assisted me evaluating their financial management system.
iii. Investm Investment ent and Portfolio Portfolio Managem Management: ent:
A bank always focuses on investment fund management to derive the maximum benefit from it. I gain not only the knowledge about investment management of a bank but I also studied on market settings, industry analysis, company analysis and technical analysis. It was useful in the sense that I had to analyze the overall banking activities of the National Bank and that included various analysis of this bank upon which their current and future strategies to be set.
Chapter 4: Lessoned Learned from the Internship Program
Chapter 04: Lessons learnt from the Internship Program:
The lesson about the organization I have learnt from the entire internship program was really important. I had the opportunity during the program to get a closure look at the various general banking activities activities along with all other financial financial activities activities of the National National Bank New Eskaton Eskaton branch. All I have learnt is about various departments departments of the bank, their management, management, general activities, operation and so on. Overall, the whole program helped me both understanding the banking activitie activitiess and making making the report report smoothl smoothly y required required by the department. department. 4.1 Implications to organization/company: 4.1.1 Multi-dimensional Task Accomplishment:
It is required that an intern will deal with various sectors and departments departments of an organization. The variety of task I have performed in the Branch was not of the same taste, however, I felt that I have achieved some more dimensions while I was studying on the various sectors of the organization. These multi-dimensional pieces of work could be valuable for my career ahead of me. 4.1.2 Adjustment with the work place and Socialization:
Organizational socialization means the adjustment of the skill, academic knowledge and behaviour with with the working working environme environment nt in the working working place. place. While While I was performi performing ng my interns internship hip program program within the bank, I was being treated as an employee employee like others in the organization. organization. I got suffic sufficient ient assistance assistance from from the working working people people in terms terms of acquirin acquiring g enough enough idea idea about about their their working strategy. This enhanced my knowledge, skill and the power of implementing of my academic knowledge in a workplace. I believe this is much quite important and also the whole program program made me me ready for for starting starting my professional professional career in in the same same environment. environment.
4.1.3 Enhancement of Communication Skill:
As a fully customer oriented organization, the National Bank operates great customer service where the communication skill is one of the fundamental factors. Treating every customer in bank’s customi customized zed unique way is a challenging challenging thing as I observed observed while while working working with with the staffs staffs of the branch. I have achieved significant amount of knowledge about customer service and I have realized that great communication skill is the fundamental requirement of serving the customers with great service.
4.1.4 Familiarization with Corporate Culture:
It is required that a workplace could have people from different cultural back ground within it. It was not the exception while I was working in NBL Eskaton Branch. Mixing with the culture of the organization and coping up with the people from different background really equipped me with knowledge of workplace diversity. I have also observed the customers from different cultures are being served served by the bank and gained gained the skill skill of maintaining maintaining a unique culture culture regardles regardlesss possessing possessing different cultural backgrounds by the people. Additionally, the corporate culture of the NBL Eskaton Branch was really friendly and cooperative for me during my whole internship program.
4.1.5 Motivation of the employee within the organization:
Besides doing my program, the bank provided me some compensational benefits and I felt more courage for performing performing my study. I found that this is an effective way adopted by an organization organization to motivate its people whether they could be interns or staff of itself.
4.2 Implications Implications to University’s Internship Internship Program: Program:
This internship is a part of our BBA program. AIUB has given us this opportunity to have a practical practical job experience experience before getting getting into into a permanent permanent job as as a full time time employee. employee. Definitel Definitely y this
internship program will help us a lot in job sectors. Internship helps us to learn lots of things which will be very effective for the near future. From university’s internship program I have learned 1. How to to give a comp company’ any’ss portfo portfolio lio in in the report report 2. How to prese present nt work work expe experie rience nce in the the repor reportt 3. Coopera Cooperative tive educatio education n experie experience nce 4. Concern for integrating integrating experiences experiences and and external external experiences experiences 5. Wa Way y of comm commun unic icat atio ion. n.
4.3 Others: While doing this internship I have learned lots of new things, which was totally unknown for me. Besides learning from the organization and the university I have also learned some other things which are very essential for me. 1. Increase Increased d trust, trust, confidence confidence and and profess professiona ionalis lism m 2.
Improv Improved ed subject subject area area and and discipl discipline ine knowl knowledge edge
3. Incr Increa easi sing ng sophi sophist stica icati tion on 4. Develo Developing ping skills skills and compet competenci encies es 5. Symbol Symbolic ic capital capital and meaning meaning,, conceptua conceptuall familiar familiarity ity..
Chapter 5: Concluding Statement
Chapter 05: Concluding Statement 5.1 Summary
The experience and learning I have gathered from my whole internship program with the National Bank Limited (Eskaton Branch) was really important for me and I enjoyed the whole thing from the first day of my internship program. This internship program assisted me a lot to realize my further career for the coming future. Rather than drawing a conclusion, I would like to say that this study was utterly indicative for me for my future career.
During the long three months program, in fact most of the sections and departments have been observed by me and I had acquired plenty of understandings about those. I had a great scope to match my theoretical knowledge with practical banking knowledge. I have come to know that along along with with convent conventiona ionall banking banking service service,, the NBL also also perfor performs ms some some special specialized ized financia financiall activities for the growth of country’s economy. The ‘online banking’ will be launched shortly for making the banking easier for the customers. From my understanding about general banking activities, I can include several activities such as cheque clearing, cash receipt and payment, local remittance and so on. It has also been watched that the amount of deposit in the NBL Eskaton Branch is high as the area the branch is situated in is a rich area in the capital capital city. The credit proposal proposal is dealt with the loan and advance department department and the decision of disbursing the credit basing upon the proposal strength is given by those departments. Doctor’s scheme, house building loan loan and term finance for medium and small scale industries are also provided this bank as specialized finance service.
From the experience of the whole internship program, the NBL Eskaton branch is a nice place to work with its nice and cooperative people within it. Additionally, understanding various sectors of the bank, it can be said that National Bank Ltd plays some vital roles for the country’s economy.
5.2: Recommendations for future strategic actions
There are several recommendations have been realized from the whole internship program. Some of them mentioned below. •
The communication between the intern and the supervisor should be quite clear and on the regular basis so that the intern has the total understanding and control over the entire internship program.
•
The university sometimes could take initiative for the students who often fail to get offer form the companies for internship. The university could make some reference lists with big companies and make them offer its students for internship.
•
A fresh intern is not always that keen to achieve full control on the program. He/she might not need some extra knowledge about corporate culture and some other things about a work place and companies. companies. In this regard the supervisor supervisor could be a big helping helping hand for the intern. The supervisor can give initial view about corporate environment for a smooth start of the program.
•
The interns could get highly motivated by the supervisors while they will be performing the internship program in some particular companies. This motivation will drive the interns to get jobs from those companies. Also, the supervisors can arrange some group discussion to share the information about companies and make the interns fully understand.
References •
Debnath, R.M. (2004). (2004). Busines Businesss of Banking Banking (1st (1st ed.). Dhaka. Lotus Publishers, 984-32-1093-9
•
NBL Annual Annual Report, Report, 2008 2008
•
NBL Annual Annual Report, Report, 2009 2009
•
NBL Annual Annual Report, Report, 2010 2010
•
NBL Monthly Monthly Stateme Statement nt & Daily Daily Affairs Affairs
•
National Bank Limited Limited:: www.nblbd.com
•
Bangladesh Bank: www.bangladeshbank.org.bd
ISBN
Appendices Abbreviation:
A/C AD B/L BB BOE CCI & E CFR CIB CIF DD DP EPB EXP FC FDD FOB HS IBC IBCA IBDA IMP IRC L/C LCAF OBC PO PSI SWIFT TC TIN TR TT STD
Account Authorized Dealer Bill of Lading Bangladesh Bank Bill of Exchange Chief Controller of Import & Export Cost & Freight Credit Information Bureau Cost Insurance & Freight Demand Draft Note Demand Promissory Note Export promotion Bureau Export Form Foreign Currency Foreign Demand Draft Free On board Code Harmonized System of Coding Inward Bills for Collection Inter Branch Credit Advice Inter Branch Debit Advice Import Form Import Registration Certificate Letter of Credit Letter of Credit Authorization Form Outward bills for Collection Payment Order Pre Shipment Inspection Society for Worldwide Inter Bank Financial Travelers Cheque Tax Identification Number Truck Receipt Telegraphic Transfer Short Term Deposit
