A brief description of jamuna bank limited (jbl) has been furnished by lawjuris

A brief description of Jamuna Bank Limited (JBL) has been furnished

Background of the Study Institute of Business Studies (IBS) of Darul Ihsan University Bangladesh (DIU) launched MBA Program to cater for the needs of trained MBA graduates for the business communities of Bangladesh. Rapid and large-scale economic development is dependent on the promotion of efficient business people in a country which acts as a strong catalyst agent for the purpose highly trained MBA personnel are a must for the realization of this economic aspiration of our country. IBS, therefore, embanked upon this venture for realizing the economic goal of the nation. As a partial fulfillment of the MBA program, internship is a requirement for MBA students at the end of the completion of all the credit courses. Under internship program students are placed in an organization or a financial for undergoing an internship for a period of 3(three) months in order to make us familiar with the real world situation and practical experience in a business firm. As a MBA student and as per requirement of this institution, attached with an organization to do my internship program for three months. The completed internship from "Jamuna Bank Ltd", a commercial and service oriented financial institution. During that time have worked in various sectors and tried to obtain practical knowledge so far could. From overall observation feel special interest on investment. So, will mainly emphasize on the investment through will discuss overall banking tasks and marketing of Bank product and development.

â&#x20AC;˘ Prolegomenon Modern banks play an important part in promoting economic development of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. They collect savings of large masses of people scattered through out the country, which in the absence of banks would have remained idle and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirements. Economy of Bangladesh is in the group of worldâ&#x20AC;&#x2122;s most underdeveloped economics. One of the reasons may be its underdeveloped banking system. Government as well as different international organizations have also identified that underdeveloped banking system causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since, 1990, Bangladesh government has taken a lot of financial sector reform measurements for making financial sector as well as banking sector more transparent formulation and implementation

of these reform activities has also been participated by different international organization like world Bank, IMF etc.

1.2 Rationale of the Study The asked to work on Marketing of Bank Product, Development, and Limitation in the Jamuna Bank Ltd. (JBL) at Dilkhusha main Branch, Dhaka. Bank plays an important role in the business sectors and in the industrialization of a country. Banks take deposits from the customers against interest and lend it to the borrowers against interest for a time being. To perform these functions bank has to do a lot of works such as deposits collection, loans and advances appraisal and management system, foreign exchange transactions, general banking etc. Hence these issues of banking have been selected for study. The banks works within some conceptual frameworks such as GAAP & IAS, which are guidelines of the whole process. So the application of GAAP & IAS in the preparation of financial statements is very important.

• Origin of the study All over the world the dimension of banking has been altering rapidly due to deregulation, technological modernism and globalization. Now bank must complete the market place both with local institution as well as foreign ones. To survive in this competitive banking world banks entail to develop appropriate financial structure, enlarge professionalism in the sense of developing appropriate manpower structure and expertise and experience. This report originated as an academic requirement of MBA program of Darul Ihsan University Bangladesh. After completion of the program period a student must submit the report on the assigned topic to the supervisor and to the department. The program is three months duration.

1.3 Objective of the study The main objectives of the study are: • To find out the reality in the practical life. • To fulfill the requirement for the completion of postgraduate (MBA) program. The secondary objectives of this report are: • To develop the practical knowledge by the practical orientation of work. • To build up the pillar of the career for near future. • To about Jamuna Bank Limited (JBL) orientation activities • To know about Credit orientation of JBL. • To identify the customer service of JBL. • To know the investment decision.

• • • • •

1.4

To know the mode of investment To learn the making process of the proposal for approval of the head office. To learn the Lending Risk Analysis (LRA). To know the dealings process with the Bangladesh Bank (BB). Above all, to know the overall banking process.

Scope of the study

Jamuna Bank Limited (JBL) is now well growing and it’s containing fourteen Branches in Dhaka and outside of the Dhaka. The scope of the study will be limited to the organizational setup, function and operation of the JBL in the Bangladesh. This report mainly encompasses the performance of Jamuna Bank Limited in comparison the General Banking. For the purpose of my internship program, assigned in the Foreign Exchange Branch at JBL and this paved me the way to get myself familiarized with banking environment for the first time indeed. Have an opportunity to gather experience by working in different departments of the Branch.

1.5

Limitations of the study

This internship report is first assignment outside our course curriculum in the practical life. the student of “The Department of Master of Business Administration” just have completed our formal education stage. After completing the institutional experience, practical performances in the formal stages become difficult. So in performing this report our lack of proper knowledge greatly influenced in this performance. Besides above, have to face some other limitations are: • • • • • • • • • •

Three months time is not enough for such an extensive study. It is very difficult to collect all the required information in such a short period. Lack of availability of data Improper combination among various departments Time is a limitation that would mostly with stands a comprehensive on the topic selected Up-to-date information were not available Don’t give the data from their source document Unwilling to give information more because of extra harassment without their responsibility The banker is very busy with their jobs, which lead a little time to consult with. They are employee so have no eagerness to supply more because of extra hardness Due to some legal obligation and business secrecy banks are reluctant to provide data. For this reason, the study limits only on the available published data and certain degree of formal and informal interview.

•

Category wise export, import, guarantee business, amount and percentage of classified loan originated from the international trade are missing in the report for their restriction

1.6

Methodology of the study

Different data and information are required to meet the goal of this report. Those data and information were collected from various sources, such as, primary and secondary which is showed below:

Primary sources of data: • • • •

Personal observation. Face to face conversation of the officers. Face to face conversation of the client. Working at different desks of the bank.

Secondary sources of data: • • • • • • • • •

File study. Annual report of Jamuna Bank Limited-2008 Statement of affairs. Bank rate sheet. Internet. Progress report of the Bank. Bangladesh Bureau of statistics report. Several kinds of Academic test-book and training sheet. Different publications regarding banking function.

Structure of this report In very beginning of this report a brief description of Jamuna Bank Limited (JBL) has been furnished. Then in the subsequent chapters, elaboration of the three departments of branch, say General banking, Credit section and investment have been presented. At last few pages of the main report, some problems of banking which are observed while doing work in the branch are detected along with some recommendations to over come these problems. At the end of this report appendices and bibliography are added. CHAPTER TWO BACKROUND OF THE ORGANIZATION

Banking Sector in Bangladesh: In 1971, Bangladesh, which was East Pakistan, emerged as an independent country. It immediately nationalized all the banks excepting 3 foreign banks. Six nationalized banks were thus formed. In 1983 a new industrial policy was implemented allowing private sector participation in industrialization. As a part of this process, two nationalized commercial banks were again denationalized and a number of private commercial banks were allowed operating. Banks play a very important role in important role in international trade. Now a day no country can thrive without international trade. Moreover banks provide some other nontraditional services like factoring, issuing guarantees; when are very much supportive to modem business.

2.1 An overview of the organization Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001. Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital of Tk. 4,000.00 million and Paid-up Capital of Tk.1,313.26 million. The total capital/equity of the bank stands at Tk. 2,444.33 million as on December 31, 2008. Currently the Bank has 43 (Forty Three) branches-16 in Dhaka City, 8 in Chittagotang, 4 in Gazipur, 3 in Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in Shirajganj, 1 in Rajshahi, 1 in Narayanganj, 1 in Kushtia, 1 in Dinajpur, 1 in Noakhali and 2 in Comilla. The Bank undertakes all types of Banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only Eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has 41 real-time centralized online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides this traditional delivery point, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country. The operation hour of the Bank is 9:00 A.M. To 5:00 P.M. from Sunday to Thursday with transaction hour from 9:00 A.M. to 3:00 P.M. The Bank remains closed at Friday and Saturday including government holidays.

2.2 Mission, vision, strategy statement â&#x20AC;˘ VISION To become a leading banking institution and to play a pivotal role in the development of the country.

â&#x20AC;˘ MISSION The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

â&#x20AC;˘ STRATEGIES o To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund o To strive for customer satisfaction through quality control and delivery of timely services o To identify customers' credit and other banking needs and monitor their perception towards our performance in meeting those requirements. o To review and update policies, procedures and practices to enhance the ability to extend better service to customers. o To train and develop all employees and provide them adequate resources so that customers' needs can be reasonably addressed. o To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion o To cultivate a working environment that fosters positive motivation for improved performance o To diversify portfolio both in the retail and wholesale market o To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.

CORPORATE SLOGAN Your Partner for Growth

SPONSORS The sponsors of Jamuna Bank Limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialists & businessmen having wide business reputation both at home & abroad.

MANAGEMENT JBL is managed by highly professional people. The present Managing Director of the Bank is a forward-looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The Management of the Bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers & known for its reputation.

SERVICE Jamuna Bank Limited offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of the rules and regulations as laid down by the Central Bank and other Regulatory Authorities.

Deposit Products (a)

(b)

All Types of Deposit Accounts: The client can maintain different types of deposit accounts i.e. Current, Savings, STD, FDR and Foreign Currency Account accounting to his necessity and convenience. Special Deposit Schemes: • Ananta Account • FD Chamak • Abashon Deposit Scheme • Student’s Savings Scheme • Pension Deposit Scheme • Car Deposit Scheme • Taravel Deposit Scheme • Money Multiplier • Quarterly Benefit Scheme • Daily Profit Savings Account • Sangshar Deposit Scheme • Easy Account • Hi-Fi-FDR

• • • • • • • • • • • • • • • •

Small Savings Scheme Senior Citizen Benefit Scheme Rural Deposit Scheme NRB Gift Cheque Tuition Savings Deposit Scheme Special Service Savings Account for Housewives Mudaraba Hajj Savings Scheme Crorepati Deposit Scheme Education Savings Scheme Millionaire Deposit Scheme Lacpati Deposit Scheme Marriage Deposit Scheme Double Growth Deposit Scheme Tripple Growth Deposit Scheme Monthly Benefit Scheme Monthly/Travel/Abashon/ Household

• •

Overseas Earner’s Deposit Scheme Household Durable Deposit Scheme Jamuna Bank Paribar

Durable/ Tuition Savings Scheme

• Loan Products (a) General Loan Facility Letter of Credit, Bank Guarantee, Cash Credit, SOD, Loan (General), Hire Purchase, Lease Finance, LIM, LTR, Work-Order Finance, Export Finance, House Building Loan, LDBP and FDBP. (b) SME Credit Scheme • Double Loan (Double Amount of Loan of FDR value) • Loan for purchase of possession right for shop/business • Festival Credit • Shop/Business office renovation loan • Loan for purchasing capital machinery & vehicle • Working capital/ Trade Finance • Flexible Working Capital Loan • Loan for Herbal Industry • Loan for Women Entrepreneurs Electronic Products • Real Time On-Line any branch banking • 24-hours ATM • Debit Card • Credit Card • Telephone Banking • SMS Banking • Internet Banking (c) Retail Credit Products • Any purpose lifestyle loan • Loan against salary • CNG Conversion loan • Car Loan • Travel Loan • Consumer Loan • Household durable loan • Study Loan • JBL Debit & Credit Card • Doctors Loan • Marriage Loan

JBL Corporate Structure Employees of JBL share certain common values, which helps to create a JBL Culture

• • • • • •

The client comes first Search for professional excellence Openness to new ideas & new methods to encourage creativity Quick decision-making Flexibility and prompt response A sense of professional ethics.

2.3 OBJECTIVES • • • • • • • • • • • •

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

2.4 Composition of the board

Board of Directors & Sponsors

Chairman

Vice Chairman

Mr. Sakhawat, Abu Khair Mohammad

Mr. Md. Ismail Hossain Siraji

Directors

Engr. A. K. M. Mosharraf Hussain

Engr. Md. Atiqur Rahman

Al-Haj Nur Mohammed

Mr. Md. Tajul Islam

Al-Haj Md. Rezaul Karim Ansari

Mr. Md. Belal Hossain

Mr. Md. Mahmudul Hoque

Mr. Farhad Ahmed Akand

Mr.Kanutosh Majumder

Mr. Gazi Golam Murtoza

Mr. Mohammad Nurul Alam Independent Director

Mr. Md. Motior Rahman Managing Director

Sponsors

Al-Haj M. A. Khayer

Mr. Md. Sirajul Islam Varosha

Mr. Golam Dastagir Gazi (Bir Protik)

Mr. Fazlur Rahman

Mr. Md. Irshad Karim

Mr. Shaheen Mahmud

Chairman 1. Mr. Sakhawat, Abu Khair Mohammad

Vice Chairman 2. Mr. Md. Ismail Hossain Siraji

Directors 3. Engr. A. K. M. Mosharraf Hussain 4. Engr. Md. Atiqur Rahman 5. Al-Haj Nur Mohammed ----- Chairman of Jamuna Bank Foundation. 6. Mr. Md. Tajul Islam 7. Al-Haj Md. Rezaul Karim Ansari 8. Mr. Md. Belal Hossain 9. Mr. Md. Mahmudul Hoque

10. Mr. Farhad Ahmed Akand 11. Mr.Kanutosh Majumder 12. Mr. Gazi Golam Murtoza 13. Mr. Mohammad Nurul Alam 14. Mr. Md. Motior Rahman

Sponsors 1. Al-Haj M. A. Khayer 2. Mr. Arifur Rahman 3. Mr. Golam Dastagir Gazi (Bir Protik) 4. Mr. Fazlur Rahman

5. Mr. M. N. H. Bulu 6. Mr. Md. Sirajul Islam Varosha 7. Mr. Md. Irshad Karim 8. Mr. Shaheen Mahmud

2.5 Capital and reserves (Taka in million) Sl.

Particulars

Year-

No. 1.

Authorized Capital

2008 2007 2006 2005 2004 4000 4000 1600 1600 1600

2. 3. 4.

Paid up Capital Reserve Funds Tier“1”Capital (Capital &

1313.27 1131.07 2131.02

1225.71 651.92 1651.58

1072.50 629.33 1562.47

429 487.46 807.14

429 245.65 607.32

5. 6. 7. 8. 9.

shareholder’s equity) Tier “2” Capital Deposit (Core & Bank) Total Income Total Expenditure Income From Investment

313.32 7307.9 4074.39 3034.19 666.15

221.14 20924.0 3102.99 2278.79 474.48

139.36 17284. 2749.90 2048.58 255.66

109.32 14454.1 1727.2 1307.26 126.30

67.33 10450.2 1397.27 1088.44 80.44

10.

Earning Per Share Take

38.21

8.04

31.94

46.58

36.35

2.6 Management structure

Management Hierarchy: CHAIRMAN

BOARD OF DIRECTORS

MANAGING DIRECTOR

Deputy Managing Director

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

SENIOR ASSISTANT VICE PRESIDENT

ASSISTANT VICE PRESIDENT

Management Team Managing Director

Vice President

Mr. Md. Motior Rahman

Deputy Managing Director Mr. M. A.Salam Mr.Md. Alauddin Al-Azad

Senior Executive Vice President Mr. A.K.M. Rashiduzzaman Mr. M. Shamsul Huq Mr. Md. Yunus Ali

Md. Fazlul Jalil (Jalal) Mr. Md. Monsur-Uz-Zaman Mr. Md. Md. Belal Hossain Mr. Ahmed Nawaz Mr. Md. Zashim Uddin Mr. Md. Gulam Mustafa Mr. Khandaker Zia Hassan Mr. Md. Mofazzal Hossain Mr. Md. Fazle Elahi Chowdhury Mr. Md. Abdus Sattar

Senior Assistant Vice President

Executive Vice President Mr. Md. Anwar Hossain Mr. Md. Mirza Elias Uddin Ahmed Mr. Md. Habibur Rahman Mr. M. Shamsul Arefin Mr. Md. Balayet Hossain Mr. A.K.M. Saifuddin Ahmed Mr. Mahboob Alam Choudhury Mr. Shahedul Alam Khan Mr. Abrar Hossain Khan Mr. Md. Zobaidul Islam

Senior Vice President Mr. Muhammad Ali Ashraf Mr. Md. Anwar Hossain Ms. Nur-E-Jannat Begum Mr. Manzurul Ahsan Chowdhury Mr. Md. Nazmul Hossain Mr. Khorshed Ahmed Nayeem Mr. Md. Elias Ali Akanda Mr. Md. Mukhlesur Rahman

Mr.Md. Shahid Ullah Mr. S.M. Jamal Uddin Mr. Md. Monirul Alam Chowdhury Mr. Md. Mostafizur Rahman Mr. A.H.M. Monjur Morshed Mr. Md. Abdullah Mr. Engr. S.M. Anisuzzaman Mr. Md. Kamal Uddin Mr. Muhammad Bazlul Huq Mr. Syed Khakir Uddin Md. Munir Mr. Md. Shah Alam Mr. Md. Shamsur Rahman Majumder Mr. Chowdhury Reza Shahzaman Mahmud Mr. Sikder Mohammad Ali Mr. Md. Mokshed Ali Howlader Mr. Iqbal Akram Khan Mr. Mohammad Azam Mr. Md. Yasin Siddiqui Mr. Anwar Hakim Mr. A.F.M. Quamrul Hassan Mr. Md. Shahidul Islam Mr. Md. Harunoor Rashid Mr. Malik Muntasir Reza Mr. Ashim Kumer Biswas Mr. Zahurul Islam Khondker Mr. Borhan Uddin Ahmed Mr. Parvez Ahmed Khan Mr. S.M. Ashafuddoullah Mr. Sudatta Sebak Barua Mr. Md. Mozharul Haque

Assistant Vice President Mr. Md. Majibur Rahman Mr. Abu Rushd Md. Zubair Mr. Jamil Uddin Akhter Mr. Md. Hafizul Haque

Mr. Md. Mizanur Rahman Mr. Abu Sayed Md. Yousuf Mr. Abdul Mannan Mr. Mominul Abedin

Mr. Md. Hafizul Haque Mr. Md. Ayub Ali Mr. Md. Farukuzzaman Mr. Md. Billal Hossain Mr. A.K.M. Shah Alam Mr. Md. Shahnewaz Sarker Mr. Md. Raisul Alam Mr. S.M. Mofizur Rahman Mr. Md. MOfazzal Mamun Khan Mr. Md. Nurul Islam Khan Mr. Mohammed Shahrior Islam

Mr. Molla Belayet Hossain Mr. Md. Shahid Ullah Mr. Md. Nazrul Islam Mr. Sadhan Kumar Chakma Mr. Md. Mahfuzul Karim Mr. Abdul Hamid Chowdhury Mr. Md. Abdul Bashar Mazumder Mr. Mustaq Ahmed Rizvi Mr. Masudur Rahman Mr. Ariful Ferdous

2.7 Risk management The risk management of Jamuna Bank Limited evolves identification, measurement, monitoring and controlling risk to ensure that: • •

• •

The Bank’s risk exposure is within the limits established by Board of Directors. The Bank’s risk taking decisions are in line with the business strategy and objectives set by board of Directors of the bank as well as Bangladesh Bank guidelines. The bank’s risk taking decisions are explicit and clear. Sufficient capital as buffer is available to take risk.

• Market risk Jamuna Bank Limited is exposed to market risk in variety of ways. Market risk exposure is mainly explicit in portfolio of Bangladesh Government Treasury Bonds held under HFT(held for trading) conversely, Market risk is implicit such as interest rate risk due to mismatch of loans and Foreign Exchange Risk due to maturity mismatch of foreign currency positions. The portfolios are being revalued at an interval at current market price of marketing to market basis. Beside, the portfolios have been synchronized an line with Bangladesh Bank guidelines of risk based Capital Adequacy for interest rat risk and foreign exchange risk.

• Interest rate risk Interest Rate Risk arises when there is a mismatch between positions. The bank’s landing, funding and investment activities give arise to Interest Rate Risk. The Bank Assess Interest Rate Risk in earning perspective which is traditional approach to Interest Rate Risk assessment and obtained by measuring the change in the Net Interest income(NLL) on Net Interest Margin (NIM) i.e. the different between total interest income and total interest expanses.

• Foreign Exchange Risk The Bank also exposed to Interest Rate Risk, which arises from the maturity mismatching of foreign currency position. It also includes settlement risk. The total holding position is being revalued on market on monthly basis.

2.8 Key figures • • • • • •

Centralized Database Platform Independent Real time any branch banking Internet Banking Interface ATM Interface Corporate MIS facility

2.9 HRD HUMAN RESOURCES

& TRAINING DEPARTMENT (HRD)

The functions of Human Resources Department are strategic, planning and policy formulation for compensation, recruitment, promotion, training, development and appraisal. This department also contributes to employees' performance by providing standard of training. OPERATION: • • • • • • • • • • • • • • • •

To assist the top-level decision making process on compensation, promotion, training, development and appraisal. Communicate with all external and internal entities. Monitor leave, payroll, increments and allowances etc. Maintains financial flows related to HRD. Plan and arrange the development training programs for the employees. Ensure the standard of the group. Help to ensure the cost effectiveness. Provide full logistics supports to all departments for quality services. Deals with intra and inter communication for administrative issues. Ensures value actability. Plan for development of the company. Facilitates admin officers' job Develop plans for support services. Ensures security of the company. Conduct the performance evaluation. Execute recruitment arrangements.

2.10 District-wise Branch distribution

Gajipur 4

Dhaka 16

Chittago ng 8

Naogaon 2

Sylhet 3

Narayang onj 1

Bogra 1

Jamuna Bank Ltd. Munsshig nj 1

Dinajpur 1

Noakhali 1

Rajshahi 1 Shirahgo nj 1

Kustia 1

Comila 1

01.

Mohakhali Branch, Dhaka Ismail Mansion 32 Mohakhali C/A, Dhaka

02. Sonargaon Road Branch, Dhaka National Plaza (1st Floor) 109, Bir Uttam C.R. Datta Road Dhaka â&#x20AC;&#x201C; 1205, Bangladesh.

PABX: 9887269, 9889273-4 SWIFT: JAMUBDDH035

Tel: 9677048, 9677049 Fax: 9669206 PABX: 9670655, 9677050 SWIFT: JAMUBDDH039 Branch Manager: Engr. S.M. Anisuzzaman Senior Asstt. Vice President

Branch Manager: Mr. M. Shamsul Huque Senior Executive Vice President 03.

05.

07.

09.

Moulvibazar Branch, Dhaka Mustaquim Mansion 77/3, Moulvibazar, Dhaka. Tel: 7315965, 7315974-5 PABX: 7315025, 7315026 SWIFT: JAMUBDDH036 Branch Manager: Mr. Khandaker Zia Hassan Vice President

04. Goala Bazar Branch, Sylhet New Plaza, Goala Bazar Osmani Nagar, Balaganj, Sylhet PABX : (08222) 87352-3

Agrabad Branch, Chittagong Jahan Building No. 4 76-77, Agrabad C/A, Chittagong Tel: (031) 813272, 710071 PABX: (031) 727727 SWIFT: JAMUBDDH038 Branch Manager: Mr. Zobaidul Islam Executive Vice President

06. Dilkusha Branch, Dhaka 33, Dilkusha Commercial Area Dhaka-1000 Tel: 9555548 PABX: 9551419, 955795, 9565608 SWIFT: JAMUBDDH037 Branch Manager Mr. M. Shamsul Arefin Executive Vice President

Branch Manager: Mr. Md. Harunoor Rashid Senior Asstt. Vice President

Branch Manager: Mr. Nabil Ahmed Jr. Asstt. Vice President

08. Sylhet Branch, Sylhet Sahir Plaza , 7647, Zinda Bazar Kotoali, Sylhet Tel: 725239 PABX : 0821-725409 Branch Manager: Mr. Chowdhury Reza Shahzaman Mahmud Sr. Asstt. Vice President

Shantinagar Branch, Dhaka 41/B, Chamelibag Shantinagar,

10. Gulshan Branch, Dhaka Land View Commercial Centre

Beani Bazar Branch, Sylhet Fatehpur, Union 6 Beani Bazar Beani Bazar, Sylhet Phone :08223 - 88022

28, Gulshan North C/A (2nd Floor) Gulshan Circle-2, Dhaka-1212 Tel: 8860350 PABX: 8861281, 8852540 SWIFT: JAMUBDDH043 Branch Manager: Mr. Sikder Mohammad Ali Senior Vice President

Dhaka Tel: 8355649 PABX: 8355179, 9358194, 9358157 Branch Manager: Mr. Belal Hossain Vice President 11

13.

15.

17.

Dhanmondi Branch, Dhaka House –17 (Ground Floor) & 17/A (1st Floor) Road – 6, Dhanmondi R/A, Dhaka, Tel: 9676553, 9662668, 8621805. Branch Manager: Mr. Md. Mofazzal Hossain Vice President Mohadebpur Branch, Naogaon Mohadevpur, Naogaon Tel: 88-07426-75137 Branch Manager: Mr. Md. Ataur Rahman Junior Asstt. Vice President Khatunganh Branch, Chittagong 1575, Pathorghata, Chittagong Tel: 031-848135 PABX: 031-625454, 811430 SWIFT: JAMUBDDH042 Branch Manager: Mr. Manjurul Ahsan Chowdhury Senior Vice President

Bhatiyari Branch, Chittagong Uttarbazar, Newaz Market Bhatiyari, Shitakundu Chittagong Tel: 031-752187, 2780025

Nayabazar (Islami Banking) Branch 10/3 Malitola , North South Road Bangshal, Dhaka-1100 Tel: 9553977 PABX: 7176799 SWIFT: JAMUBDDH040 Branch Manager: Mr. Khorshed Ahmed Nayeem Senior Vice President

14.

16.

Naogaon Branch, Naogaon 247, Sadar Road , Naogaon Tel: 0741-61840 SWIFT: JAMUBDDH044 Branch Manager: Mr. Fazle Elahi Chowdhury Senior Asstt. Vice President

Konabari Branch, Gazipur Plot # A-140&141(partial) BSCIC Industrial Area Konabari, Gazipur Tel: 9289045 Branch Manager: Mr. Md. Shahid Ullah Asstt. Vice President

18.

Foreign Exchange Branch, Dhaka Chini SHilpa Bhaban, 3, Dilkusha C/A, Dhaka Tel: 9564258 PABX: 9571365

19.

21.

23.

Branch Manager: Mr. Md. Yashin Siddique Senior Asstt. Vice President

SWIFT: JAMUBDDH045 Branch Manager: Mr. Md. Habibur Rahman Executive Vice President

Jubilee Road Branch (Islamic Banking), Chittagong Modina Tower Jubilee Road Chittagong Branch Manager: Mr. Mohammad Azam Senior Asstt. Vice President

Chistia Market Branch, Dhaka Chistia Market (Gausia Market) 393/B Elephant Road Tel: 9673742 Branch Manager: Mr. Anwar Hakim Senior Asstt. Vice President

Bogra Branch, Bogra Kazi Nazrul Islam Sarak Borogola Bogra Tel: 051-69834-6 Branch Manager: Mr. Ghulam Mustafa Vice President Narayanganj Branch Holding# Old: 137, New: 207 B.B. Road, Chasara, Narayanganj Tel: 7635166

20.

22.

24.

Branch Manager: Mr. Muhammad Bazlul Huq Senior Asstt. Vice President

Baligaon Branch, Munshiganj Aziz Plaza , Baligaon Bazar Tongibari Munshiganj Tel: 0691-74078 Branch Manager: Mr. Md. Moazzem Hossain First Asstt. Vice President Motijheel Branch, Dhaka 2, DIT Avenue (Ext.) Motijheel C/A, Dhaka-1000 Tel: 9554467 PABX: 9554475 Branch Manager Mr. Md. Anwar Hossain Senior Vice President

25.

Rajshahi Branch, Rajshahi 88,Shaheb Bazar (Zero Point), Rampur ,Rajshahi. Tel: 0721-812568 PABX: 0721-812569-70 Branch Manager: Mr. Abrar Hossain Khan Senior Vice President

26.

Bashurhat Branch, Noakhali Bashurhat, Companygonj, Noakhali Tel: 03223-56032 PABX : 03223-56031 FAX: 03223-56043 Branch Manager: Mr. Md. Majibur Rahman Asstt. Vice President

27.

Dhoalikhal Branch, Dhaka 119/B/1(New), Disttillary Road, P.S.-Sutrapur, Dhaka. Tel: 7410415

28.

Bahddar Hat Branch, Chittagong 1068/69/70 Rahman Centre, Arakan Road, Bahddar Hat More, Chittagong. Tel: 031-2551851-3

Branch Manager: Mr. Md. Abdullah

Branch Manager: Mr. Md. Shahidul Islam

Senior Asstt. Vice President

29.

Sirajganj Branch, Sirajganj 973, 974 and 975 S.S. Road, Hossain Plaza, Shirajganj Municipality, Thana : Shirajganj Shodor, Shiraj Ganj. Tel : 0751 - 64377 â&#x20AC;&#x201C; 78 Fax : 0751 - 64377 - 79. Branch Manager: Mr. Abu Rushd Md. Zubair Asstt. Vice President

30.

Banani Branch, Dhaka Tower Hamlet (2nd Floor) 16, Kemal Ataturk Avenue Banani Commercial Area Dhaka â&#x20AC;&#x201C; 1213 Bangladesh. Tel : 883 6630, 8836631, 8836632 Fax: 8836630 PABX: 8836631, 8836632 (Ext: 101) Branch Manager: Mr. A.F.M. Quamrul Hassan Senior Asstt. Vice President

31.

Ashulia Branch, Dhaka

32.

Mawna Branch, Gazipur 172 Mawana Chowrasta Powrashava, Sripur, Gazipur. Tel : 06825 51336-7

1159, Nigar Plaza & Hakim Plaza

(Opposite of Fantasy Kingdo) Jamghara, Ashulia, Savar, Dhaka. Tel : 7788437 Branch Manager:

Branch Manager: Mr. Md. Shamsur Rahman Mojumder Senior Asstt. Vice President

Mr. Syed Sakir Uddin Md. Munir

Senior Asstt. Vice President 33.

Dinajpur Branch, Dinajpur Holding No. 562/533 & 563/534 Nimtala, Balubari Kotowali, Dinajpur. Tel : 0531 51849-50

34.

Kushtia Branch, Kushtia 21-22 N. S. Road (1st Floor) MH Bhaban (Roxy More) Kushtia Sadar Kushtia. Tel : 071 73729, 071 73739 Branch Manager: Mr. Billal Hossain (CC) First Assistant Vice President

36.

Aganagar Branch Haji Anwar Hossain Complex East Aganagar, Keranigonj Tel: 7762295,7762296 Branch Manager: S.M. Mofizur Rahman Assistant Vice President

38.

Comilla Branch, Comilla Trical Tower 634/581 South Thakurpara Laksham Road, Kandirpar, Comilla.

Branch Manager: Mr. Md. Aiyub Ali Asstt. Vice President 35.

Kadamtali Branch, Chittagong Khaleque Manson, 1167 D.T. Road, Kadamtoli, Chittagong

Tel: 0312514178, 0312514179 Fax: 0312514178 Branch Manager Md. Abdul Hamid Chowdhury Assistant Vice President 37.

Uttara Branch, Dhaka Singapur Plaza 17, Mymensingh Road , Sector-3, Uttara, Dhaka

Mobile : 0173-329329

Mobile : 01730084064

39.

Azadi Bazar Branch, Chittagong Nazir Market, Azadi Bazar Fatikchari, Chittagong. Mobile: 01817-751857 Branch In Charge: Mr. Osman Gani Junior Asstt. Vice President

40.

Laksham Branch, Comilla Holding No: 967, AB Plaza (2nd Floor) Laksham Powrashava. Branch Manager: Mr. Md. Nurul Islam Khan First Asstt. Vice President

41.

Anderkilla Branch, Chittagong Holding#479/510 (1st, 2nd, 3rd Floor) "Bashar Chamber", Ward No. - 02 Chittagong City Corporation P.S. Kotowali Branch Manager: Mr. Md. Shahid Ullah Senior Asst. Vice President

42.

Mirpur Branch, Dhaka 203/A, 203/1, Senpara Parbata (1st - 2nd Floor) Mirpur-10, Dhaka. Tel: 8051931-33 Branch Manager: Mr. M. A. Wadud Asstt. Vice President

43.

Malibag Branch, Dhaka 67, Khilgaon, Chowdhurypara DIT Road, Dhaka. TEL: 01715025383 Branch Manager: Mr. S. M. Jamal Uddin Assistant Vice President

44.

Madaripur SME Centre Holding # 676, Puran Bazar New Market Complex, Madaripur Tel: 9338251, 8319595 Fax: 9353039 Branch Manager: A.H.M. Momenur Rahman Senior Executive Officer

45.

Thakurgaon Branch Masud Heights 529, Shahid Md. Ali Road Thakurgaon Mobile: 01712529392 Branch Manager Md. Abdul Bashar Murshed Assistant Vice President

Financial Analysis: 2.11 Balance sheet Property and Assets Cash : Cash in hand (Including foreign currency) Balance with Bangladesh Bank and Its agent banks (Including foreign currency)

2008 Taka

2007 Taka

1,864,959,818 357,873,767

1,379,174,865 412,510,308

1,507,086,051

966,664,557

2,343,451,681 1,999,453,853 343,997,828 50,000,000 4,238,625,873 4,185,459,444 25,000,000 28,166,429 21,036,861,012 18,917,459,281 2,119,401,731

1,877,145,119 1,575,483,812 301,661,307 120,000,000 5,390,032,112 5,346,422,108 43,610,004 16,617,450,517 14,565,241,601 2,052,208,916

609,023,043 1,503,708,072 31,646,629,499

174,401,040 847,200,403 . . 26,405,404,056

396,123,775

2,298,932,000

Deposits and other accounts:

27,307,936,141

20,924,021,090

Current Accounts and other Accounts Bills Payable Savings Bank Deposits Fixed Deposits Bearer Certificates of Deposit Short Term Deposits Deposit Under Special Scheme Foreign Currency Deposit Other liabilities Total Liabilities: Capital / Shareholders' Equity Paid up Capital : (1,31,32,652 Ordinary shares of Taka 100 each) Share Premium Statutory Reserve Revaluation Reserve Surplus in Profit and Loss A/C Total Shareholders' Equity Total Liabilities and Shareholders' Equity

3,283,210,586 412,026,029 1,679,395,629 16,360,184,896 1,335,158,019 4,131,800,411 106,160,571 1,781,837,741 29,485,897,657

2,625,670,594 354,436,223 1,407,320,842 13,125,131,370 833,809,802 2,525,084,573 52,567,686 1,525,960,928 24,748,914,018

1,313,265,200 503,839,433 29,711,551 313,915,658 2,160,731,842 31,646,629,499

1,225,714,200 85,800,000 330,676,426 4,907,671 9,391,741 1,656,490,038 26,405,404,056

Balance with other banks and financial institutions In Bangladesh Outside Bangladesh Money at call on short notice Investments : Government Asset Pledge as Securities Others Loans and Advances : Loans, Cash Credit, Overdrafts, etc. Bills Purchased & discounted Fixed assets including premises, furniture and fixtures Other assets Non-banking assets Total Property & Assets Liabilities & Capital Borrowings from Bangladesh Bank, other banks, financial institutions and agents

2.12 Profit and loss account (Income Statement) Jamuna Bank Limited

Profit and Loss Account For the year ended December 31, 2008 Particulars Interest Income & Profit on Investment Less: Interest paid on deposits and borrowings, etc. Net interest income Investment income Commission, exchange and brokerage Other operating income Total operating income (A) Less: operating Expenditure Salary and allowances Rent, taxes, insurance, electricity, etc Legal expenses Postage, stamps, telecommunication, etc. Stationery, Printings, Advertisements, etc. Directors' fees & other expenses Auditors fees Managing Director's salary & allowance Depreciation and repairs and maintenance of bank's assets Other expenses Total Operaing Expenses (B) Profit / (Loss) before provisions (C=A-B) Provisions for loans, advances Provision for off balance sheet expenses Provision for other assets Total Provision (D) Total profit before taxes (C-D) Contribution to Jamuna Bank foundation @0.5% of pre-tax profit Provision for taxation for the year Current tax Deferred tax Net profit after taxation Retained surplus broght forward from previous year Retained Surplus Before Appropriation Appropriations: Statutory Reserve (20% on pre-tax profit) Retained Surplus Earnings Per Share (EPS)

2008 Taka 2,890,654,531 2,321,887,137 568,767,394 666,152,122 419,954,455 97,627,800 1,752,501,771

2007 Taka 2,230,265,913 1,774,389,203 455,876,710 474,482,522 320,726,444 77,519,246 1,328,604,922

405,191,749 73,978,759 1,720,530 28,109,490 22,133,178 6,124,142 100,000 7,128,666

232,631,098 62,905,322 1,541,252 28,712,320 26,066,423 4,157,603 100,000 6,271,833

36,672,190 131,140,133 712,298,837

30,248,608 111,761,993 504,396,452

1,040,202,934

824,208,470

119,485,090 54,902,811 174,387,901 865,815,033

389,733,491 29,430,000 419,163,491 405,044,979

4,329,075 382,048,035 379,594,588 2,453,447 479,437,923 7,640,742 487,078,665

315,934,118 311,747,167 4,186,951 89,110,861 1,289,876 90,400,737

173,163,007 313,915,658 38

81,008,996 9,391,741 8.04

2.13 Cash flow statement Jamuna Bank Limited Cash Flow Statements For the year ended December 31, 2008 Particulars A) Cash flows from operating activities Interest receipts Interest payments Fee and commission receipts Payments to employees Payments to suppliers Income taxes paid Receipts from other operating activities Payments to other operating activities Operating profit before changes in operating assets and liabilities (Note-A)(i) Increase /Decrease in operating assets & liabilities Loans and advances to the customers Other assets Deposit from other banks Deposit from customers Interest payable to the customers & banks Other current liabilities Cash received from operating assets and liabilities (Note-A) (ii) Net cash from operating activities (A=i+ii) B) Cash flows from investing activities Income received from investments Proceeds from sale of securities (gain) Payments for purchase of securities Purchase of property, plant & equipment Adjustment for property, plant & equipment Net cash from investing activities

2008 Taka

2007 Taka

2,890,654,531 ( 2,321,887,137) 419,954,455 (412,320,415) (62,715,925) (322,228,466) 97,627,799 (209,841,781)

2,230,265,913 (1,774,389,203) 320,726,444 (238,902,931) (64,939,375) (195,926,625) 77,519,246 (177,508,711)

79,243,061

176,844,758

(4,419,410,495) (334,279,203) 889,911,762 5,390,745,898 103,257,392 (280,084,317)

(3,820,820,038) (136,272,565) 605,818,146 3,017,376,419 16,014,732 104,385,229

1,350,141,037

(213,498,077)

1,429,384,098

(36,653,319)

590,310,706 75,841,416 15,443,575 (468,164,364) 6,121,645 219,552,978

355,415,051 119,067,471 222,423,951 (65,180,367) 5,092,371 636,818,477

(1,902,808,225) (1,902,808,225)

1,680,584,500 1,680,584,500

D) Net increase/ decrease in cash and cash equivalent (A+B+C)

(253,871,149)

2,280,749,658

E) Cash and cash equivalents at beginning year F) Cash & equivalents at end of the period (D+E)

8,722,742,092 8,468,870,943

6,441,992,433 8,722,742,092

C) Cash flows from financing activities Payments in borrowings Received from Initial Public Offering (IPO) Cash Dividend Net cash from financing activities

RECONCILIATION 2008 NOTE: A Taka Profit before tax 865,815,033 Less : Investment income (666,152,122) 199,662,911 Add : Depreciation 27,420,715 Provision for loan, advances and other assets 174,387,901 Less : Advance income tax (322,228,466) 79,243,061

2007 Taka 405,044,979 (474,482,522) (69,437,543) 23,045,435 419,163,491 (195,926,625) 176,844,758

NOTE: B Closing cash & cash equivalent Cash in hand (including foreign currency) Balance with Bangladesh Bank and its agent banks Balance with other bank's and financial institutions Money at call on short notice Prize bond in hand Government securities

357,873,767

412,510,308

1,507,086,051

966,664,557

2,343,451,681 50,000,000 609,100 4,209,850,344 8,468,870,943

1,877,145,119 120,000,000 371,700 5,346,050,408 8,722,742,092

Chapter Three General Activities of the Organization INTRODUCTION Jamuna Bank Limited (JBL) is a banking company registered under the company Act. 1994 with itâ&#x20AC;&#x2122;s head office at Chini Shilpa Bhabon (2nd, 3rd, & 8th floor), 3, Dilkhusha, C/A, Dhaka1000, Bangladesh. The bank started itâ&#x20AC;&#x2122;s operation from 3rd June 2001. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only Eight years. The bank has already ranked as one of top quality service providers & is known for its reputation. The operation hour of the Bank is 9:00 A.M. To 5:00 P.M. from Sunday to Thursday with transaction hour from 9:00 A.M. to 3:00 P.M. The Bank remains closed at Friday and Saturday including government holidays.

3.1 General banking General Banking is the starting point of all banking operation. It is a combination of activities of different sections. General banking has some section in the bank. These sections are as follows: • Accounts Opening Section. • Cash Section. • Clearing Section. • Remittance Section. • Accounts Section. • Others.

3.1.1 Account opening section It is a customer service section. Here three employees of the bank are always ready to serve their customers. In this section people come to open different kinds of accounts, and schemes. They advice their clients that how can they (clients) open an account and a locker. They are very friendly and cordial to their clients. Here the employees also issue new checkbooks, help customer to open various types of a/c, and help customers about various types of deposit scheme etc. They also use computer for posting purposes.

Objectives or Necessities of Opening Bank Account: • • • • • • •

Safety preservations Creation of savings attitude Facilities of risk less income Formation of national capital Economic development Establishment of social securities Getting banking services

Types of Account: • • • •

Savings Deposit Account. Current Deposit Account. Short Term Deposit Account. Fixed Deposit Account.

The short discussion of each account is given below:

• SAVING DEPOSIT ACCOUNT Opening of an account binds the banker and the customer into a commercial relationship initially all the accounts are opened with a deposit of money by the customer and hence these

accounts are called deposit accounts. Accepting of deposits of money from the public is one of the essential functions of a banker according to the definition of banking given in the banking Act 1991.This is such kind of account that provides a rate of profit on the principal deposit. Saving account can be single or joint. Besides educational institutions, clubs/societies, associations and financial institution can also open the saving account. In the JBL saving account is denoted as SB.

• Payment The Interest: Jamuna Bank Limited is providing 5.5% interest on Savings account.

• Characteristics of Saving deposit account: o o o o o o

No limit to the number of withdrawals No minimum balance fee Statement of account at your desired frequency Free cheque book Q-Cash Round the Clock Banking All types of general banking facilities

• Restriction on withdrawals and deposits: •

The customer may deposit any amount in the savings bank account subject to a minimum of Taka 1000/- in the account.

•

Opening a Saving Account and necessary Documentation:

For opening a Savings Deposit Account following documentation are required: • • • •

Two copies of passport size photographs. Introductory reference. Commissioner’s/Chairman Certificate. National ID card.

o General Precautions of opening a Savings Deposit Account (SDA): After opening an account and before issuing a cheque book the authorized officer should check the account opening form for the complete information, which is given by the customers: • Name of the account holder. • Photos of the account holder attested by the introducer. • Date of opening. • Types of account. • Present and permanent address. • Name of nominee, photographs and their address.

• • •

Initial deposit. Specimen signature in the form and in the ‘specimen signature card’. Name, address and the account number of the introducer.

o CURRENT DEPOSIT ACCOUNT: This kind of account does not provide any interest on total balance; usually business persons/organizations opened such kind of account because this account provides the facility of unlimited times of withdrawal of money. The current account is denoted as CD/CA. In the bank, there are seven kinds of current accounts. Each account requires some documents. The table, given bellow will show the types of account. There are also some responsibilities both the customers and bankers. o General Documentation requires for opening an Current Deposit Account (CDA):

a) For Individual Customer: • • •

Copy of the passport, it available or Employer’s Certificate of Commissioner’s Certificate or Letter of introduction by a person acceptable to the bank. TIN Certificate, if applicable. Two recent passport size photographs attested by the introducer.

(b) For Sole Proprietorship: • • • •

Copy of Trade License. Two recent passport size photographs of the Proprietor/Signatory duly attested by the introducer. Copy of the passport of the Proprietor/Signatory, if available or Commissioner’s/Chairman’s Certificate or Letter of Introduction by a person acceptable to the Bank. TIN Certificate.

Copy of the Partnership Deed of the Firm. List of partners with their address and phone number. Copy of Trade License. Extract of Resolution of the Partners of the Firm for opening the account and authorization for its operation duly certified by the managing Partner of the Firm. For Registered Partnership, Certificate of Registration of the Firm along with duly certified copy of the Partnership Deed. Two recent passport size photographs of each Partner/Signatory duly attested by the Introducer. Copy of the passport of each Partner/Signatory, if available or Commissioner’s /Chairman Certificate or Letter of Introduction by a person acceptable to the Bank. TIN Certificate.

(d) Private & Public Limited Company: • •

Certified true copy of the Memorandum and Article of Association of the Company. Certified true copy of Certificate of Incorporation of the Company.

• • • • • • •

Certified true copy of Certificate of Commencement of business of the Company, in case of Public Limited Company. Latest list of Directors with address and phone number along with Form. Extracts of the duly adopted Resolution of the Board of Directors of the Company for opening the Account and authorization for its operation duly certified by the Chairman/Managing Director of the Company. Copy of the Trade License. Two recent passport size photographs of each Signatory duly attested by the Introducer. Copy of the passport of each Signatory, if applicable or Commissioner’s/ Chairman’s Certificate or Letter of Introduction by a person acceptable to the Bank. TIN Certificate.

• SHORT TERM DEPOSIT ACCOUNT

Jamuna Bank Limited also receives short term deposit from the clients. The STD account is different from the interest-based banks. It is also a time Deposit account. The formalities for opening of this account are similar to those required for Saving Account. The only difference is that seven days notice is required for withdrawal of any sum and profit is paid. The rate of profit for this account is 5.00%. If the withdrawal on demand is desired, it may be paid subject for the feature of profit for the period of notice or the expired of notice.

o Fixed Deposit Account (FDR) Revised rate of interest on deposits and IBTA as mentioned below will come into effect from 1st May, 2009 Sl. No. Category of Deposits The Rate of Interest 01. FDR for 1 (one) month 8% 02. FDR for 3 (three) months 8.5% 03. FDR for 6 (six) months 9% 04. FDR for 12 (twelve) months or more. 9.5% Higher rate of upto 0.50% may be allowed for Fixed Deposit of Tk. 5.00 crore and above only for a period of 3 (three) months.

Different Types of special Scheme The Jamuna Bank Limited (JBL) is containing some Special Deposit Scheme, which are the really profitable for and customer. The Bank maintains transaction with their customer by the different Scheme this are: • • • • • • •

Marriage Deposit Scheme Lakhpati Deposit Receipt Millionaire Deposit Scheme Kotipati Deposit Scheme Education Savings Scheme Monthly Benefit Scheme Double/Triple Growth Deposit Scheme

•

Monthly Savings Scheme Installment Period 5.5 Years 7.5 Years 10.5 Years 12Years 15 Years 18Years

Tk.1,000 Tk.1,500 86,875 1,30,315 1,32,430 1,98,645 2,20,760 3,31,140 2,76,440 4,14,660 4,24,115 6,36,175 6,36,020 9,54,030

Tk.2,000 1,73,750 2,64,860 4,41,520 5,52,875 8,48,230 12,72,04 0

Tk.2,500 2,17,190 3,31,075 5,51,900 6,91,095 10,60,290 15,90,050

Now there is a short description of these schemes.

Marriage Deposit Scheme Marriage of children, specially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion. It can be a great help to the parents if there is any scope of deposit of a modest amount as per their financial capacity, which grows very fast at high rate of interest yielding a sizeable amount on maturity. With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity.

Eligibility: 

Marriage Deposit account can be opened in the name of children below the age of 18years along with legal guardian. For opening a marriage deposit account, maintenance a savings account with JBL is required.



Terms & Conditions: •

Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. • If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure. • Duties and taxes are payable by the customers as per government rules. • The above figures are indicative only and subject to change from time to time. • Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Lakhpati Deposit Scheme

To become a lakhpati is a dream to most of the people of Bangladesh specially to the lower and lower middle class income group. We experiences our expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the above in mind JBL has introduced “Lakhopati Scheme” which has flexibility in report of maturity and monthly installment as per affordable capacity.

Terms & Conditions: • •

• • •

Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments. If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure. Duties and taxes are payable by the customers as per government rules. The above figures are indicative only and subject to change from time to time. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Tenor Mnthly Installment Payable amount at the maturity 3 years T.K.2,395 T.k. 1 lac. 4 years T.K 1,695 T.K. 1 lac 5 years T.K 1,275 T.K. 1 lac

Millionaire Deposit Scheme It is a dream for many small savers to become a Millionaire. The word ‘Millionaire' is really exciting. This dream can be a reality if you have a calculated plan and strong determination. JBL has introduced ‘Millionaire Deposit Scheme' which has flexibility in respect of period and monthly deposit as per your affordable capacity for giving a sum of Tk.1.00 (one) million i.e. Tk.10 (ten) lac at a time. Eligibility: • Millionaire Deposit account can be opened at any Branch of JBL • For opening a millionaire deposit account, maintenance a savings account with JBL is required. • Customer can deposit monthly instalment through any of our online branches • Under standing instruction system, Customer can deposit money automatically his accounts.

Terms & Conditions: •

Bank reserves the right to close the scheme if customers fail to deposit

3- consecutive installments. • If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. • Duties and taxes on the deposit, if any, are payable by the customers as per government rules. • The above figures are indicative only and subject to change from time to time. • Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Tenor Mnthly Installment Payable amount at the maturity 3 years 4 years 5 years 6 years 7 years 10 years 12 years 15 years

T.K. 24,120 T.K. 17,190 T.K. 13,035 T.K. 10,280 T.K. 8,320 T.K. 4,885 T.K. 3,610 T.K. 2,380

T.k. 10 lac. T.K. 10 lac T.K. 10lac T.K. 10lac T.K. 10lac T.K. 10lac T.K. 10lac T.K. 10lac

Kotipati Deposit Scheme To become ‘Kotipati' is simply a dream for the most of the populace of Bangladesh. It is realizable for high income group who have strong determination and savings habit. If you decide and plan to save money from your regular income, you can own Tk1.00 crore easily by making a planned savings. In this regard, JBL has introduced “Kotipati” Deposit Scheme” offering the savings plan fit to your income and to execute your dream to be a Kotipati by monthly deposit at your affordable capacity. You can take advantage of the “Kotipati Deposit Scheme” from JBL and plan for your golden future accordingly.

Eligibility: • •

Kotipati Deposit account can be opened at any Branch of JBL. For opening a Kotipati deposit account, maintenance a savings account with JBL is required.

Terms & Conditions: • •

• • •

Duties and taxes on the deposit, if any, are payable by the customers as per government rules. The above figures are indicative only and subject to change from time to time. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Tenor Mnthly Installment Payable amount at the maturity 3 years T.K. 2,41,165 T.k. 1 Crore. 4 years T.K. 1,71,890 T.K. 1 Crore 5 years T.K. 1,30,340 T.K. 1 Crore 6 years T.K. 1,02,755 T.K. 1 Crore 7 years T.K. 83,160 T.K. 1 Crore 10 years T.K. 48,820 T.K. 1 Crore 12 years T.K. 36,050 T.K. 1 Crore 15 years T.K. 23,800 T.K. 1 Crore

Education Savings Scheme Education is a basic need of every citizen. Every parent wants to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should be pre-arrangement of fund to ensure higher education of the children. Otherwise higher education may be hindered due to change of economic condition, income of the parents at the future time when higher education shall be required. Today's higher education is becoming expired day by day. Parents can get relief and can have peace of mind if they can arrange the necessary fund for higher education of their children. As such, JBL has introduced ‘Education Savings Scheme' which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity or initial lump sum deposit to yield handsome amount on a future date to meet the educational expenses. Under this Scheme you have the different attractive options to avail the future benefit i.e. withdrawal of the total amount accumulated in lump sum or withdrawing monthly benefit to meet educational expense keeping the principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Eligibility: • •

Education Savings account can be opened in the name of children below the age of 18-years along with legal guardian. For opening a education savings account, maintenance a savings account with JBL is required.

Terms & Conditions: •

Bank reserves the right to close the scheme if customers fail to deposit 3- consecutive installments.

•

If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months,

• • •

customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure Duties and taxes are payable by the customers as per government rules. The above figures are indicative only and subject to change from time to time. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Installment Period 4 Years 6Years 8 Years 12Years

Tk.1,000 Tk.1,500

Tk.2,000

Tk.2,500

58,420 97,640 1,45,860 2,76,440

1,16,840 1,95,280 2,91,720 5,52,875

1,46,050 2,44,100 1,38,220 6,91,095

87,630 1,46,460 2,18,790 4,14,660

Monthly Benefit Scheme (MBS) Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons having ready cash and desiring to have fixed income on monthly basis out of it without taking risk of loss and without encashing the principal amount. This scheme offers highest return with zero risk. You can plan your monthly expenditure with the certain monthly income under the scheme.

How to apply: You have to open an account with any branch of JBL. The above noted monthly benefit will be deposited in this account in each month.

Eligibility: • • •

Any person having age of above 18-years can participate in this scheme through opening a savings or current account with any branch of JBL Customer must be Bangladeshi Nationals/Citizen. Persons below 18-years of old may open this account with his/her legal guardian

Characteristics: • • • •

Minimum deposit :.1(one) lac Maximum deposit : amount multiple of Tk.1(one) lac After opening the account, the profit element will be deposited in that account Upon maturity the term may be renewed for the next tenure.

Overdraft facility:

The concerned customer can avail loan facility upto 80% of the initial deposit.

Terms & Conditions: Bank reserves the right to change the rate of profit during the tenure of deposit. No loan facility will be allowed from any other Bank(s)/Financial Institution against the deposited amount except JBL. The initial deposited amount and term shall not be changed before maturity. If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure. Duties and taxes on the deposit, if any, are payable by the customers as per government rules. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. Deposit taka) Tenor Monthly profit\interest 1,00,000 6 month 850 taka 1,00,000 1 year 875 taka

Double/Triple Growth Deposit Scheme For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL has introduced Double/Triple Growth Deposit Scheme that offers you to make double/triple your money within 6(six) years and 9.5 (nine and a half) years respectively resulting a high rate of interest.

Eligibility: • • •

Any person having age of above 18-years can participate in this scheme through opening a savings or current account with any branch of JBL. Customer must be Bangladeshi Nationals/Citizen. Persons below 18-years of old may open this account with his/her legal guardian

Characteristics: • •

Minimum deposit Maximum deposit

: :

Tk.1(one) lac Any amount multiple of Tk.1(one) lac

How to apply: You have to open an account with any branch of JBL having deposit of the above figure.

Overdraft facility: The concerned customer can avail loan facility upto 80% of the deposited amount. • It will take 7 years to double and 11 years t triple a certain amount.

Terms & Conditions: • • • •

• •

Bank reserves the right to change the rate of profit during the tenure of deposit. No loan facility will be allowed from any other Bank(s)/Financial Institution against the deposited amount except JBL. The initial deposited amount shall not be changed before maturity. If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure. Duties and taxes on the deposit, if any, are payable by the customers as per government rules. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

Monthly Savings Scheme (MSS) Savings is the best friend in your bad days. Small savings can build up a prosperous future. Savings can meet up any emergencies. JBL has introduced Monthly Savings Scheme (MSS) that allows you to save on a monthly basis and get a handsome return upon maturity. If you want to build up a significant savings to carry out your cherished dream, JBL MSS is the right solution.

Eligibility: • •

MSS account can be opened at any Branch of JBL. For opening a MSS account, maintenance a savings account with JBL is

required.

Facility: • • • •

The concerned customer can avail loan facility upto 80% of the deposited amount. The can deposit the monthly instilment at any branch of JBL and the same through on-line banking. Monthly installment can be automatically collected from your savings account maintained with JBL. Customer can choose any day of the month as installment date.

Terms & Conditions: • •

Bank reserves the right to close the scheme if customers fail to deposit 3consecutive installments. If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6months, customers will get the deposited amount along with the interest at the normal savings rate upto the time of closure.

• • • •

5 year

10 year

Installment 500 1,000 1,500 2,000 3,000 5,000 10,000 500 1,000 1,500 2,000 3,000 5,000 10,000 500 1,000 1,500 2,000 3,000 5,000 10,000

Payable amount 20,885 41,775 62,670 83,650 1,25,340 2,08,900 4,17,810 38,970 77,945 1,16,920 1,55,900 2,33,850 3,89,750 7,79,500 1,05,400 2,10,810 3,16,220 4,21,625 6,32,444 10,54,070 21,08,145

3.1.2 Deposit Mix The Deposit-mix of the Bank as on 31.12.2008 given as below: Sl. No.

Nature of Deposit

1 2 3 4 5 6

Current Deposit Savings Deposit Fixed Deposit Short Term Deposit Special Scheme Deposit Other Deposits Total

Taka in million 3,283.21 1,679.40 16,360.18 1,335.16 4,131.80 518.19 27,307.94

Percentage of Total Deposit 11.30% 06.34% 60.14% 04.89% 15.33% 2.00% 100.00%

Deposit Mix of 2008 Current Deposit 15%

12%

Saving Deposit 6%

Fixed Deposit Short term Deposit

60%

Special Scheme Deposit Bill Payable

3.1.3 Other products and services Jamuna Bank is computerized and provides the following services some of these services will be introduced soon. Different types of products and services of JBL included such as balance inquiry, cheque book request, cheque leaf status, FC rate information, cheque stop payment instruction, statement request by courier/post, statement request by e-mail, last three transaction statement, help inquiry and PIN change. Jamuna Bank Limited introduced a few products and services, which are very popular. These are given below: • • • • • • • • • • • •

Online services Automation in Banking Operation Corporate Banking Personal Banking Q-Cash round the clock SWIFT International Trade Finance ATM Service SMS / Push Pull Services REUTERS Signature Verification Any Branch Banking

• Online Banking Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from all branches located throughout the Country. Our valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at different location throughout the Country.. All the existing customers of Jamuna Bank Limited will enjoy this service by default.

Key features: • • • • • •

Centralized Database Platform Independent Real time any branch banking Internet Banking Interface ATM Interface Corporate MIS facility

Delivery Channels: • • •

Branch Network ATM Network POS (Point of Sales) Network

•

Internet Banking Network

Online Banking Launching Ceremony held at Hotel Sheraton on April 2005

• Automation in Banking Operation The Jamuna Bank Limited is an Industry Standard & latest technology based Modern Bank. The Bank is equipped with state-of-the-art technology and committed to provide technology based modern Banking solutions to its valued customers.

• Corporate Banking

The motto of JBL's Corporate Banking services is to provide personalized solutions to our customers. The Bank distinguishes and identifies corporate customers' need and designs tailored solutions accordingly. Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the accurate solution. Our corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of businesses and industries. We can leverage on our know-how in the following sectors mainly: • •

Agro processing industry Industry (Import Substitute / Export oriented)

- Export Oriented Garments, Sweater. - Food & Allied - Paper & Paper Products

- Engineering, Steel Mills - Chemical and chemical products etc • • • • • • • • • • •

Textile Spinning, Dyeing / Printing Telecommunications. Information Technology Real Estate & Construction · Wholesale trade Transport · Hotels, Restaurants · Non Bank Financial Institutions Loan Syndication · Project Finance · Investment Banking Lease Finance · Hire Purchase · International Banking · Export Finance Import Finance

• Personal Banking Personal Banking of Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available you a unique mixture of easy and consummate service quality. We make every endeavor to ensure our clients' satisfaction. Our cooperative & friendly professionals working in the branches will make your visit an enjoyable experience.

• Q-Cash Round the Clock Jamuna Bank Q-Cash ATM Card enables you to withdraw cash and do a variety of banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major shopping centres, business and residential areas in major cities. The network will expand to cover the whole country within a short span of time. With your Jamuna Bank Q-Cash ATM card you can: • • • • • •

Cash withdrawal Round The Clock from any Q-Cash logo marked ATM booths. POS transaction (shopping malls, restaurants, jewellaries etc) Enjoy overdraft facilities on the card (if approved) Utility Bill Payment facilities Cash transaction facilities for selective branches nationwide ATM service available in Dhaka and Chittagong Withdrawal allowed from ATM's of Jamuna Bank Ltd., AB Bank, The City Bank, Janata Bank, IFIC Bank, Mercantile Bank, Pubali Bank, Eastern Bank Ltd. respectively

•

And more to come Is Q-Cash

Q-Cash is fully secure. Q-Cash cardholders can only carry out transactions on Q-Cash ATMs with Personal Identification Numbers (PIN). The PIN is a unique 4-digit number that allows you to access your account. You can change your PIN anytime from ATM machine. In case you have lost your card, transactions cannot be done without the PIN. In line with the issuance of Q-cash products JBL is going to introduce VISA card very soon.

• SWIFT Jamuna Bank Limited is the member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world. SWIFT No.: JAMUBDDH

• International Trade Finance International Trade forms the major business activity undertaken by Jamuna Bank Ltd. The Bank with its worldwide correspondent network and close relationships with key financial institutions provides an extensive trade services network to handle your transactions efficiently. Our key branches in Dhaka, Chittagong, Sylhet and Naogaon are staffed by personnel experienced in International Trade Finance. These offices are the focal point for processing import and Export transactions for both small and large corporate customers. We offer a complete range of Trade Finance services. Our professionals will work with you to develop solutions tailored to meet your requirements, through mobilizing our full range of trade services locally, and drawing on our global resources. We can offer you professional advice on all aspects of International Trade requirements, namely: • Issuing, advising and confirming of Documentary Credits. • Pre-shipment and post-shipment finance. • Negotiation and purchase of Export Bills. • Discounting of Bills of Exchange. • Collection of Bills. Assist customers to insure all risks. • Foreign Currency Dealing etc.

• List of Foreign Correspondents To provide International Trade related services we have established Correspondent Banking relationship with 336 locations of 106 world reputed Banks in more than 100 countries.

Our main Correspondent Banks are: Citi Bank N.A., Standard Chartered, American Express Bank, Bank of New York, Bank of Nova Scotia, Duetche Bank, Dresdner Bank AG, Habib American Bank, Habib Bank AG Zurich, Bayerische Hypo Vareins Bank, Mashreq Bank PSC, Nordea Bank AB, Royal Bank of Canada, UBS AG, Union De Banques Arabes ET, Francaises, Wachovia Bank NA, Forties Bank S.A/NV, Svenska Handlesbanken, Bank of Ceylon, Banca Toscana, ABN Amro Bank, Commonwealth Bank of Australia, Danske Bank A/S. Absa Bank Ltd., Agricultural Bank of Chaina, Banca Intesa SPA, Banca Italo Albanese, Banca Popolare Commercio E Industria SPA, Bank Austria Credittanstal AG, Bank Commonwealth, Bank Madiri (Europe), Bank of Cyprus, Bank of Bahrain and Kuwait, Bank of Jordan Ltd., Bank Sadarat Iran, Blue Nile Bank, Commercial Bank of Kuwait, Commercial Bank of Qatar Ltd., Development Bank of the Philippines, Dexia Bank SA, EON Bank Berhad, First International Merchant Bank PLC., Foreign Trade Bank of North Korea, Foreign Trade Bank of Vietnam, Hiroshima bank, HVB, Hungary RT, ICICI Bank Canada. Industrial and Commercial Bank of China, ING Bank NV, Islamic Bank of Yemen and for Finance & Investment, Korea Exchange Bank, National Commercial Bank, Shinhan Bank, State Bank of India (Canada) UFJ Bank Ltd., United Bank of India, Bank of Bhutan, Allied Bank Philippines.

• ATM Service Card is considered as a new dimension of product resulting from technological development in the banking arena. In line with our affiliation with VISA ATMs to clients. • JBL VISA Debit Card To a customer, “My card, my money” concept is used for Debit Card. Any accountholder of JBL can apply for a JBL VISA Debit Card against his/her Al- Current Deposit (CD) Account, Savings Deposit (SD) Account or Short Term Deposit (STD) Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping, dining, paying utility bills and having access account information through SMS, etc. round the clock.

Features: • • • • • • • • • • • • •

Anywhere anytime banking 24 hours and 7 days a week banking Directly linked to Cardholders Account Convenient cash withdrawal at ATMs Acceptability at huge number of Q-cash ATMs around Bangladesh Accepted at all VISA terminals locally and globally Balance Inquiry Mini Statement PIN Change Shopping at a large number of Q-cash POS terminals around Bangladesh Payment of Utility Bills Avoid pressure at counters of bank Minimizing risk of carrying cash

Usage Limit Description Cash withdrawal limit (total) Cash withdrawal limit (amount) Balance checking Mini statement printing PIN change Invalid PIN retry count Card usage limit in ATMs (total)

Transaction Limit 4 times per day Tk.20,000 per day 4 times per day 2 time per day 2 times per day 3 times per day 10 times per day

Fees & Charges Particulars

Renewal

Replacement

Transaction Charges (ATM) ON-US Q-Cash Others (VISA)

General 1.Primary 2.Supplementary

460 260

Free Free

20 20

125 125

Note: VAT charges will be added with all fees (other than Transaction charges)

• SMS / Push Pull Services Jamuna Bank again fulfills the demand of time in the era of modern banking technology by introducing the Mobile banking i.e. SMS / Push Pull Service. JBL offer a range of ways for you to access and manage your money so that clients are always in control of financial transactions; it is fast, secured and economical. Get real-time banking information on customer’s handset. This automated SMS / Push Pull can be reached 24 hours a day, 7 days a week. This service performs Balance query, Mini statement, Cheque Book Request, Cheque Leaf Status, FC Rate Information, Cheque Stop Payment Instruction, Statement Request by Courier/Post, Statement request by E-mail, Help inquiry, PIN Change through SMS via a fixed mobile number given by customers. This service will soon include utility bill and fund transfer facilities.

Benefits of SMS • • • •

A new technology based service will attract new client base. Clients will be facilitated with Cell phone based banking service. Enhanced and extended customer services levels on a collaborative basis. It will reduce teller question.

• REUTERS The Bank has also established liaison the facility of REUTERS, through which the bank received regular, latest information about the exchange rate, etc and other price sensitive information to take prompt and correct decision.

• Signature Verification The Bank always verify client Signature for payment money. Without verification of client Signature the Bank does not give money to their customer. If there is occur some problem in the Signature, the bank employee’s check this in several times. Biometric Image with Signature will remain be enrolled in the software is very important for the bank to verify customer Signature.

• Any Branch Banking Any Branch Banking is a system where transactions, query and statements of any client of a certain branch may be carried out from another branch of the bank. Account holder can withdraw money any branch of the bank. It is easy for the customer to withdraw money. With the help of any branch banking client can easily fulfills their demand.

3.2 Remittance in Bangladesh Remittances have emerged as a key driver of economic growth and poverty reduction in Bangladesh, increasing at an average annual rate of 19 percent in the last 30 years (19792008). Revenues from remittances now exceed various types of foreign exchange inflows, particularly official development assistance and net earnings from exports. The bulk of the remittances are sent by Bangladeshi migrant workers rather than members of the Bangladeshi Diaspora. Currently, 64 percent of annual remittance inflows originate from Middle Eastern nations. Robust remittance inflows in recent years (annual average growth of 27 percent in FY06FY08) have been instrumental in maintaining the current account surplus despite widening a trade deficit. This in turn has enabled Bangladesh to maintain a growing level of foreign exchange reserves.

Based on a simple regression exercise we find that number of workers finding employment abroad every year, oil price, exchange rate and GDP growth are the key determinants of changes in the level of remittance inflow. Our results show that: • • • •

Each additional migrant worker brings in $816 in remittances annually; Every dollar increase in oil price increases annual remittance by nearly $15 million; Depreciation of exchange rate by one taka increases annual remittance by $18 million and; Remittances are higher during periods of low economic growth.

The findings are plausible and consistent with international evidence. In India - another significant remittance recipient county in the South Asia region – migration, oil price, exchange rate and GDP growth has been found to be the salient macroeconomic determinants of remittance inflows as well. An interesting implication is that the impact of oil price increase on Bangladesh’s balance of payment is unfavorable. A dollar increase in oil price increases oil import payments by about $26 million whereas it increases remittances by $15 million. Thus the impact of a dollar increase in oil price on the balance of payments is a deficit of $11 million. There is a widespread concern that recent decline in international oil prices and slow down in the global economy, particularly US, Europe and Middle-East are likely to have adverse effects on Bangladesh’s remittance inflows. How bad can it get let’s say next year (FY10)? Assuming oil prices at around $70 per barrel and GDP growth of 5.5 percent we predict: •

Remittance will grow by 12.4 percent, reaching $10.76 billion, if we are able to export another 610,000 workers (annual average of 2006-2008) in FY10. This is the optimistic case.

•

Remittances will grow by 10.2 percent, reaching $10.55 billion, if the outflow of migrant workers in FY10 reverts to levels observed before the recent oil price boom—350,000. This is the base case.

•

Remittances will grow by 8.5 percent, reaching $10.38 billion, if the outflow of migrant workers in FY10 is only 50 percent of the base case—150,000.

3.3 Local Remittance Remittance of fund means transfer of money from one place to another place or one city to another city of the same bank within the country is called local remittance. Jamuna Bank also maintain the local remittance. A short description of local remittance is representing here.

3.3.1 Pay order issue The pay order is an instrument used as an alteration of physical cash. It is applicable only for Dhaka City. They use specific Pay Order Block. They use specific Pay Order Block. It has some special features and they are• It is an order to pay the account mentioned on the pay order block. • The issuing branch will make the payment • Pay Order must be account payee.

Commission: 1. Commission fixed on Payment order Tk.50.00. 2. Other Liability Account-15% VAT on commission.

3.3.2 Demand draft issue Demand draft (DD) DD is a one kind of bill of exchange. DD is the most frequently used mode of inland remittance. DD is an unconditional order of the bank from one branch to another branch to pay certain amount of money to a certain person on demand. It is applicable outside the Dhaka City. The DD generally issued for party's safety. If there is a huge amount to bear one place to another, then customer can do the DD and bear it to his destination instead of cash.

Commission: • • • •

Minimum Tk.50.00 only or 10% of Purchase Amount. When the amount will be exceeded more than 50000.00 than the commission will be counted as 1 % interest rate. Postage charge Tk.25.00 only. Other liability account-15% VAT on commission.

3.3.3 Telegraphic transfer (TT) This is a modem process of transferring money. In this process money is remitted through telex, telephone, or mobile phone. In this process, a party can transfer money within short

time. The desire person can get money instantly. The most important part of a TT is its Test Number. The test number is important to make payment. If the test number of the originating branch matches with responding branch, only then the TT payment occurs. The process of incoming and outgoing TT has been described below.

â&#x20AC;˘ Foreign Remittance Jamuna Bank Ltd. has a network of 19 branches in Bangladesh and 4 more branches are going to be added to network soon. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time. Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby ( where they reside/work) to send their money to their dear ones in Bangladesh. To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank Ltd.

3.4 Clearing section Before clearing the cheque we will briefly know about the Clearing House. A Clearing House is an institution of credit where reciprocal liabilities of the local bands are counter-balanced against one another. In Bangladesh Clearing House started about 1972. The clearing House sits in Bangladesh Bank and cover only Dhaka City Corporation. Clearing House sit for two times in a day. In course of its business each bank receives from its customers for collection a large number of cheque and drafts payable at other banks. The collection of these instruments presents a big problem. Similarly each bank may to made payments to other bands in respect of cheque drawn on it and deposited with the other banks for the purpose of collection. Then everyday each bank has to make large payments in respect of cheque drawn on it and held by other banks. And each bank has to receive money in respect of cheque received for collection from its customers. Clearing House provides the mechanism for clearing such transactions between banks. Clearance involves offsetting reciprocal claims against one another and setting merely such balances of differences as remains outstanding.

A Clearing House ensures many advantages. In the absence of Clearing House, each bank has to send its messenger to every other bank, present the cheque and draft across the counter and collect amount of cash. Similarly, each bank has to pay cash every day for cheque presented across its counter by the other local banks. A Clearing House prevents frequent and tedious walks by a bank's employee for the collection of cheque and drafts thus ensure convenience and economy. Only the differences of the mutual claims are settled and hence the banks can carry lesser cash reserves. Customers deposit cheque to the bank with the deposit slip. Bank accepts the cheque and gives the following seal: • • •

Instantly give cross seal and check the cheque carefully If there is bank name in the cheque then "received payment for the concern bank and branch" seal is given. If there is individual name then "payee's credit for the concerned bank and branch" seal is given.

After the giving all entries into the computer a list of all cheque and bank print out the cheque list. With the print out sheet all cheque are sent to the representative of the bank who will go to the Clearing House. The Principal Branch of JBL deals with the Clearing cheque. That means the principal branch is representative of Clearing House, In the house every representative delivers to other the cheque and other claims that his bank hold against them. Similarly, he receives form others the claim that they hold against his bank. Check and other instruments dishonored are return to the concerned representative. Each representative adds the amounts receivable and payable and balance is stuck. Transferring balance kept at the central bank by the members of the Clearing House makes the final statement. The customer can get amount within two days after depositing the cheque.

• Inter Branch Credit Advice(IBCA) It is an advice written by originating branch to the responding branch to credit the general account of responding branch for the transaction mentioned on it. IBCA is issued to responding branch to pay. The responding branch makes payment.

Accounting: Debit: JBL General Account-Responding Branch. Credit: JBL General Account- Originating Branch.

• Inter branch Debit Advice (IBDA):

It is an advice written by originating branch to the responding branch to debit the general account of responding branch for the transaction mentioned on it. IBDA issued to collect money other branch. The originating branch collects money. Accounting: Debit. JBL General account-Responding Branch. Credit: JBL General Account Originating Branch.

â&#x20AC;˘ Outward Bills for Collection (OBC): Collection of cheques of a bank outside the clearing zone is known as OBC. Suppose a party which have an account with the JBL, Motijheel Branch, submit a cheque of Sonaly Bank of Tongi Branch. In this case the bank does a not send the cheque to the Clearing House rather than they send OBC to the Sonaly Bank, Tongi Branch to collect the amount.

â&#x20AC;˘ System of PBC Lodgment: 1. Accepting the instrument with deposit receipt from the clients. 2. Investing the instrument and deposit carefully especially, date of the cheque, amount, account number, name and sign of depositor. 3. The following seals are applied on the instruments: a. Special Cross Seal. b. OBC Seal with OBC Number. 4. Entry is given in the OBC register. 5. Making two copies of schedule. One is enclosed with the instrument for collection and other is kept as office copy.

Accounting: Debit: Outward Bills-Lodged. Credit: Outward Bills-Collection. If the cheque honors then the accounting process would be: Debit: Outward Bills- Collection. Credit: Outward Bills- Lodged. Debit: IBCA and Number. Credit: Party Account and Number.

Inward bill for collection (IBC): When cheques of other branches that are situated out side the Clearing House come to a branch of the same bank then the whole process is known as IBC. This time an IBCA is send to the OBC sending branch.

3.5 Cash section Cash department is the most vital department of a bank and it is called blood of a bank. It is a platform to communicate with customers. Cash department receives and pays cash directly. • • • • • • • • •

Vault Opening. Cash Receive. Cash Payment. Cash Remittance. Cash Balance. Counter Limit. Vault Limit. Sorting and Stitching. Vault Closing.

There is a procedure of cash-in and cash-out from the vault. Also a systematic procedure is maintained for receiving cash through different vouchers and payment against different cheques and vouchers.

• Vault Opening The Vault opened with two different keys of two respective authorized officers. The officers are: • Manager of the Branch. • Cash-in-charge officer Strong room has two keyholes opened by two officers respectively by two keys of cash. Generally sub-manager of the Branch bears authority absence of manager. Grill door one keyhole opened by two keys of two officers and bring out following thing: Cash, Vault register, receive register, payment register, balance book, security stationary. Enter the amount of cash withdrawal from the vault register.

o Cash Receive Cash is the life of a bank. Different types of form are used for cash deposits for different types of accounts. Cash may be received by the following ways: • • • • •

Current of savings account pay-in-slip. Credit voucher. Different types of instrument remittances (TT, DD, PO etc) are received by respective forms. Bills like national life Insurance Company Limited. Share collection.

•

Different types of scheme.

o Cash Payment Cash is paid in payment counter against the following instrument: •

Cheques.

•

Cash debit voucher.

• • •

Pay-in-slip. Pay Order, Demand Draft etc. Bank’s expense also paid to outside through cash debit voucher.

o Procedure Receive of the cheques with a signature behind it. • • • • • • • •

Scrutinize it by an authorized officer. Submit to computer section for checking the available balance. Cancelled and seal up “pay in cash” and cancellation through sign up. Again submitted to computer section for debiting the partly A/C and seal up “posted”. Send to cash counter-payment officer. Cash officer checks the cancellation, seal and seal up “Cash Payment”. Entry the payments register. Take another signature of payee behind the cheque and pay cash.

Cash Remittance Requisition letter, which must be authorized by the manager, is sent to the Principal office for cash Remittance:

Inward Cash • • • •

Counting the cash. Prepare simple credit voucher. Prepare IBCA. Entry in the cash receipt register.

Outward Cash • • •

Car requisition (call through phone). Taking counter part of forwarding (including name and specimen) signature of authorized officer and guard. Remit the cash prepare simple debit voucher.

o Cash Balance At the end of the transaction: • • • • • • •

Sum of total received. Sum up total payment. Total receiving + opening balance – total payment = closing balance for that day and opening balance for the next day. Check it with computer sheet. Counting cash. Entry the cash balance register. Write cash position memo with denomination.

Position of the Cash Department The position of the cash department is very important. The cash department should be at a safe place. It should be at the middle position of the branch. The cash position of the Foreign Exchange Branch is in the front side of the branch and its safe and vault is at the behind.

o Counter Limit Everything has its limitation. Cash counter of a branch also has limitation. The cashier should take cash within the limit of his counter. If the cash exceeds its counter limit, the cashier should take the excess cash to safe. Counter limit of the Foreign Exchange Branch is Tk.50 Lac.

o Vault Limit Vault is the very secret place to keep money is the bank. Usually vault is made of very hard material like iron or steel, generally it is fire-proof, damp-proof. The vault has a fixed limit too. The limitation depends on the regular transaction of the branch. If the amount exceeds its limit, the extra money should be sent to the Bangladesh Bank. The vault limit of the Foreign Exchange Branch is Tk.1.5 crore. If the amount exceeds its limitation and accident occur, then the branch will be liable and Insurance Company will not compensate for that.

o Sorting and Stitching Sorting At end of the day, the amount of cash has to be sorted out in order to identify the different types of notes, say-500, 100, 50, 20, 10 and 5 and so on. Hundred pieces of any type note create a packet and ten packets made a bundle. In this way, the cash is actually sorted out.

Stitching After sorting out the cash, packets are stitched along with a slip bearing the name of the bank, total number of notes and the signature of the cash-in-charge. Two round seals are given at both sides of packet.

o Vault Closing Before vault closing concern officer will: • Check receive, payment, cash balance, vault register signature. • Signature of computer sheet. • Count physical cash. • Keep cash in the safe. • Bundle in safe. • Loose peak of the tray. • Loose cash notes and coins on the tray. • Keep different registers. • Keep security stationeries. • Close safe. • Check the rifle and entry in register. • Close grill door and vault room’s door.

3.6 Dishonor of cheques A cheque may be dishonored by the following reason: • • • • • • • • • • •

Account closed. Insufficient funds. Payment stopped. Refer to drawer. Drawn against uncontrolled funds. Amount in words and figure. Drawer’s signature differs. Alternation requires draw’s full signature. Cheque postdated. Date incomplete or missing. Clearing house stamp missing.

The passing official must examine the following: •

Whether the instrument presented is related to the branch.

• • • • • • • •

The instrument is not undated / anti-dated / post-dated. The instrument is not crossed since crossed instrument are not payable over the counter. The amount is words and figures are written and do not differ. There is no alternation anywhere on the instrument. In case of order cheque the proper identification of the payee ensured to the satisfaction of the bank. The instrument bears the signature of the drawer. The number of the instrument along with preceding series, if any conform to the number / series issued and recorded in the relative account particulars. The instrument bearing similar number was not been paid earlier.

3.7 Closing accounts To close an account parties are requested to send an application along with the unused leaves of the chequebook. On receipt of the application the following steps are taken; i. ii. iii. iv.

The signature of the account holder is verified. The number of the unused cheque leaves shall be noted there fore. Debiting the incidental charger to the account. The account holder is advised to draw the remaining balance.

3.8 Accounts section This is obviously an independent and unique department, which works as the composition of all the departments of the branch, but it is under the in charge of the general banking in this branch. This section in this branch is fully computerized. So the conventional large ledger and journal books are not kept like the some nationalized Banks. It receives the vouchers from all departments and prepares the subsidiaries diaries and maintains accounts. This section deals with employees salary, many types of internal expenses such as purchases of stationary, equipment, payment of labor cost and conveyance. In case of leave of absence employee collects prescribed form from this section.

Books Maintain by this department: Daily position Clean cash Extract

It shows the daily position of the branch. It records all the cash transaction of the day under different head. It keeps the vouchers from different department along with their

General ledger

Statement of affairs

Transfer book

summary. There are different of general ledger, which are prescribed by the head office, and the accounts are maintained through those heads. It is the balance sheet of the concern under periodic accounting system. It show the daily profit of the concern along with the assets and liability of the respective day. Banking Transaction are three types cash, clearing and transfer. Transfer books shows only transaction by transfer only. It is a kind of trial balance.

3.9 Credit and Risk Management (CRM) Credit risk is the possibility of failure f a bank borrower or counterparty to meet its obligations in accordance agreed terms. The major causes of serious banking problems continue to be directly related to lack of credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to change in economic or other attention to change in economic or other circumstances that can lead to deterioration in the credit standing of a bank’s counterparties. The goal of credit risk management is to maximize a bank’s risk- --adjusted rate of return by maintaining credit risk exposure within acceptable levels. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long term success of any banking organization. The Basel Committee is encouraging bank to promote sound practices focus on the flowing aspects: • • • •

Establishing an appropriate credit risk monitoring environment. Operating under a sound credit- granting process. Maintaining an appropriate credit administration, measurement and monitoring process, and Ensuring adequate controls over credit risk.

Jamuna Bank Limited is keenly aware of the need to identify measure, monitor and control credit risk as well as to hold adequate capital against these risks for adequate compensation of risks incurred since exposure to credit risk continues to be the leading sources of problems in banks world - wide. In this respect, following the system as per Guidelines of Bangladesh Bank. The Bank has also adopted a policy to the whole system from time to time to copy with the multifarious of credit risk. Credit recovery and legal division is engaged in vigilant monitoring of the total credit classification of the bank, managing all classified and special Mention Accounts to regularize for maximization of recovery and ensuring appropriate loan loss provision timely. By dint of special attention, Bank could reduce the percentage of classified portfolio from 5.06% to 2.84% in 2008 through substantial amount of loan recovery and regularization.

3.9.1 Loans and Advances Loan and advance is the largest items of Bank assets. This is almost 68.67% of the total value of bankâ&#x20AC;&#x2122;s asset. A bankâ&#x20AC;&#x2122;s loan account typically is broken down into several groups of similar types of loans. In 2008 prime bank ltd. has a total amount of Tk. 21,036.86 million loan.

68.67% Loan and Advance The graph shows 68.67% Total loans and Advances. JBL was in constant efforts to explore different areas of credit operation and could raise the credit portfolios to Tk. 2106.86 million in 2008 with an increase of Tk. 4419.41 million (26.59%) over that of the preceding year. The total credit was on 31.12.07 was Tk. 16617.45 million. From the year previous the amount of loans and advances is increasing respectively. Here it is shown by a graph. Take in million Loan and

Year 2004 6,723

Year 2005 11,012

Year 2006 12,797

Year 2007 16,617

Year 2008 21,037

Advance Loan and Advance 30,000 20,000 Taka in million

10,000 0 Loan and Advance

2004 6,723

2005

2006

2007

2008

11,012 12,797 16,617 21,037 Year

The graph shows Total loans and Advances of last five years

3.9.2 Foreign exchange Foreign Exchange is a process which is converted one national currency into another and transferred money from one country to another country. According to Mr.H.E.Evitt “Foreign Exchange is that section of economic science which deals with the means and method by which right to wealth in one country currency is converted into rights to wealth in terms of another country currency”. It involved the investigation of the method by which the currency of the country is exchanged for that of another, the causes which rented such exchange is necessary the forms which exchange may take and ratio or equivalent values at which such exchange are effected. Foreign exchange means the exchange of currency in terms of goods from one country to another. This is the most well know and well-organized business uniform in world business. Foreign exchange mainly has two parties: (a) Exporter (b) Importer Foreign Exchange means foreign currency and includes: • • •

Traveler’s cheques, letter of credit and bills of exchange, expressed or drown in Indian currency but payable in any foreign currency. All deposits, credits and balance payable in any foreign currency and any drafts. Any instrument payable, at the option of the drawer or holder thereof or any other party thereto. Either in Indian currency or in foreign currency or partly in one and partly in the other. Thus the foreign exchange includes foreign currency.

o Importer Business The total import handled by the bank in 2008 was Tk. 30311.71 million compared to Tk. 22191.84 million in the preceding year registering a rise f Tk. 8119.87 million being 36.59 percent. A sizeable L/C’s were also opened by the bank in the year under review. The import items included industrial raw materials, machinery, consumer goods, fabrics, accessories etc.

Import Business 40000 30000 Taka in million 20000 10000 0 Import Business

2004

2005

2006

2007

2008

7924

12152

15458

22192

30,312

Year

The graph shows the import business of JBL of last five years

o Export Business The bank handled export business worth Tk. 18617.43 million in the year under report. In 2007 total export business handled by the bank was Tk. 13990.33 million. Thus there was an increase of Tk. 4627.10 million in export business handled by the bank, being 33.07 percent over the preceding year. The major export item was Readymade Garments. Here the last 5 years export business of JBL is presented by a graph:

Export Business 20000 15000 Taka in million 10000 5000 0 Export Business

2004

2005

2006

2007

2008

4791

6522

11584

13990

18,617

Year

3.9.3 Foreign Exchange Business

Total Foreign Exchange Business handled during the year 2008 was Tk.48,929.14 million as against Tk. 36,182.17 million of 2007 registering an increase of Tk.12,746.97 million, i.e. 35.23% growth. The particulars of Foreign Exchange Business are given below: Particulars Import Export Total

Amount in Million 30,311.71 18,617.43 48,929.14

Taka

Percentage of Total 61.95% 38.05% 100.00%

Composition of Foreign Exchange Business of 2007

38% Import Export 62%

The graph shows Total Foreign Exchange of JBL of last five years

3.9.4 Parties to the Documentary Credit Transaction â&#x20AC;˘ Issuing Bank The L/C issuing bank issues L/C at the request of their Customers. The L/C issuing bank undertakes absolute obligations to pay upon presentation of proper documents stipulated in the L/C.

â&#x20AC;˘ Customer application The L/C applicant is the party on which requests the L/C issuing bank issues L/C. The customer is normally obligated to reimburse the issuing bank for any payment made under the L/C & the customer often provides collateral to source the reimbursement authorization.

• Beneficiary Exporter The beneficiary is the party entitled to drawn to demand payment under the L/C. The beneficiary will have to present the required documents in compliance with the L/C terms when payment is demanded through the nominated bank.

Advising bank After verification of authority of the L/C advising bank gives notification to the beneficiary that a L/C has been issued by the bank. The advising bank does not itself under take any obligation to know the beneficiaries claim. Its obligation is limited to accurately advising of the credit.

• Confirming bank At the request of the L/C issuing bank, confirming bank may add their confirmation to a L/C. The bank becomes directly obliged to honor the claims of the negotiating bank normally a bank in the beneficiary location.

• Negotiating Bank Negotiating means giving values of credit confirm documents to the beneficiaries. Negotiating bank means, the bank specially authorized in the credit to negotiate documents drawn under the credit. In the case of a freely negotiable credit any bank be negotiating bank if it is expressly consented to by such bank.

• Reimbursing Bank If the L/C issuing bank nomination a 3rd bank (The reimbursing Bank) in the L/C to honor the claim of the negotiating bank. The reimbursement bank may honor the claim accordingly. If the reimbursing fails to honor the claim of negotiating bank, L/C issuing bank is obliged to honor the claim of negotiating bank.

• Notify party The notify party is the party to whom the notification shipment particulars is provided as per L/C stipulations.

3.9.5 Function of Foreign Exchange

The Bank works as a media for the system of foreign exchange policy. For this reason, the employee who is related of the Bank to foreign exchange, especially foreign business should have knowledge of these functions: • • • • • • • • • • • • • • • • • •

Rate of exchange. How the rate of exchange forward and spot rate. Methods of quoting exchange rate. Premium and discount. Risk of exchange rate. Causes of exchange rate. Exchange control. Convertibility. Exchange position. Intervention money. Foreign exchange transaction. Foreign exchange trading. Export and Import Letter of Credit. Non-commercial letter of trade. Financing for foreign trade. Nature and function of foreign exchange market. Rules and regulation used in foreign trade. Exchange Arithmetic.

3.9.6 Letter Of Credit A letter of credit is an instrument issued by a bank to a customer placing at the letter disposal such agreed sums in foreign currency as stipulated. An importer is a country requests his bank to open a credit in foreign currency in favor of his exporter at a bank in the letters of country. The letter of credit is issued against payment of amount by the importer or satisfactory security. The L/C authorizes the exporter to draw a draft under its term and sell to a satisfied bank in his country. He has to handover the bank, with the bill of exchange, shipping document and such other paper as may be agree upon between the exporter and the importer. The exporter is assured of his payment because of the credit while importer is protected because documents in respect of export of goods have to be delivered by the exporter to the playing bank before the payment is made. Credit means any arrangement however named or described, whereby a bank (issuing bank) acting at the request and the instructions of a customer (the applicant) or of its own behalf. •

Is to make payment to or to the order of a third party (beneficiary), or is to accept and pay bill of exchange (drafts) drawn by the beneficiary.

• •

Authorizes another bank to effect such payment, or to accept and pay such bill of complied with. Authorizes another bank to negotiate.

Against stipulated documents, provided that the terms and conditions of the credit are complied with.

• Forms of Letter of Credit A letter of credit (L/C) may be two forms. These are: 1. Revocable letter of credit. 2. Irrevocable letter of credit.

o Letter of Credit Opening Procedures • • • • • • • • • • • •

Application in Firm’s Pad. Original IRC (import Registration Certificate) to be retained by the issuing bank. Photocopy of trade license. Photocopy of T.I.N (Tax Identification Number) Certificate. Vat Register Certificated. Photocopy of Membership Certificated of Chamber of Commerce & Industry. Photograph of Applicant. Minimum three copies of Pro-forma invoice/indent/sale contract. L/C application from duly signed with a stamp. L/C authorization from duly signed. IMP form duly signed (along with Vat registration & IRC number) Insurance cover note with money receipt of premium paid.

The issuing bank is required to collect credit Report of Exporter from exporter’s bank through their correspondent or through telex.

o Types of Letter of Credit Letter of credit is classified into various types according to the method of settlement employed. All credit must clearly indicate in major categories: • Sight payment credit. • Deferred payment credit. • Acceptance credit. • Negotiation credit. • Red close credit. • Revolving credit.

• •

Stands by credit. Transferable credit.

o Contents of the Letter of Credit Bank normally issued letter of credit (L/C) on forms which clearly indicate the banks name and extent of the banks obligation under the credit. The contents of the L/C of different banks may be different. In general, L/C contains the following information: •

Name of the buyer.

•

Name of the seller.

•

Moment of the credit.

•

Trade name.

•

Tenor of the draft.

•

Expiration date.

•

Documents required.

•

General description of the merchandise.

o Letter of Credit Operation of JBL Today JBL is one of the leading and most successful Banking enterprises in the country. It plays great role in the economy of the country. By export-import business the bank play a great role to the economy of Bangladesh. JBL is one of the greatest banks in export-import business. Foreign trade plays a vital role in the economy advancement process of a nation. So the trend of country’s foreign trade; i.e. import and export of a great concern to the government of a country. Fluctuation is the parameters of foreign trade immediately bring about some impact on the total economy. As such the nature, trend and volume of foreign trade are required to keep peace with the national economic needs and objective. There may be some areas where emphasis is to be given where there may be others which deserve restrictions and discouragement. Moreover the items of import and export value and volume of the same, the corresponding time period, sources of fund for payment and receipt, all these factors are to be considered very carefully for making necessary adjustment to match with the national economic policies as well as achieve balanced economic growth through the inter policy coordination. International trade policy relates to commercial policy which has to maintain components of import policy and export policy.

As the policy matter and operational of import and export are quite different, two separate policies for import and export trade are formulated by the government. The main purpose of the policy is to conserve scare foreign exchange & to ensure its utilization for the import of their goods and services which have national priority. Importers can import goods and entitled in each year as per import policy by opening letter of credit (L/C) through bank.

3.9.7 Back to Back L/C The branch may open back to back import L/C against export L/C received by export oriented industrial units opening advise the beneficiary under the bonded warehouse systems, subject to observance of domestic value addition requirement prescribed by the NBR/Ministry of Commerce from time to time. The following instruction should be complied with while opening Back to Back import L/C: •

The unit requesting for this facility should process valid IRC, ERC and valid bonded warehouse license.

•

The branch shall hold the export L/C affixing bank lien stamp thereon and be kept in safe for security purpose.

•

The export L/C should have validity period adequate to the time needed for importation for inputs, manufacture of merchandise and shipment of consignee.

•

The back to back L/C value shall not exceed the admissible percentage of net FOB value of the relative matter export L/C. for computation of net FOB value of a master export L/C, the freight charge, insurance cost and commission if payable by the exporter shall be deducted from the L/C value.

•

The back to back L/C shall be opened up to 180 days issuance basis except in case of those opened against Export Development Fund Administration by Bangladesh Bank in which case the back to back L/C will be opened on sight basis.

•

Interest for the issuance period shall not exceed LIBOR or the equivalent interest rate in the currency of settlement.

•

All amendments of the export L/C should be noted down carefully to rule out changes of excess obligation under the back to back import L/C.

•

Back to back L/C can either be local and foreign. In that case, BTB L/C denominated in foreign exchange may be opened in favor of local suppliers or manufacturer under

bonded warehouse system up to value limits applicable as per prescribed value addition requirement.

3.9.8 Letter of Trust By executing the standard letter of trust the customer acknowledge receipts of the documents of title to the goods, as the case may be and agrees to hold them and relative goods, when delivery thereof its taken by him, in trusts as agents for the bank until the goods are sold or used for the express purpose for which were released to him. The customer also undertakes to keep the transaction separate and assign and deposit with the bank the sale proceeds immediately realization but in any case not later then time period stipulated in the letter. Further, the customer undertakes to keep the goods insured and in the event the goods or may part thereof cannot be used by him for the declared purpose or on demand being made by the bank for the return of the documents / goods, he promise to restore the goods or documents to the bankâ&#x20AC;&#x2122;s custody. The trust receipt thus enables the importer customer to take re-delivery of the documents.

Chapter Four Analysis of the main topic 4.1 Bankâ&#x20AC;&#x2122;s Performance Despite changing macro-economic condition and volatile money market and foreign exchange market, Jamuna Bank Limited was successful in achieving much higher than national growth in deposit, investment (loans), remittance, export and import business. As on 31st December 2007 total deposit of the Bank stood at Tk.27,307.94 million showing a growth rate of 30.51%, total amount of investment of the Bank stood at Tk.4,238.63 million as of December 31, 2008 as against Tk.5,390.03 million of 2007 with growth rate of (21.36)% over previous year. Net profit after tax of the Bank stood at Tk.479 million as of December 31, 2008 as against Tk.89 million of 2007.

4.1.1 Trend analysis â&#x20AC;˘

Trend analysis of Profit

Jamuna Bank Limited registered an operating profit of TK. 1,040 million as of 31 st December 2008. After all provision including 1% General provision on unclassified Loans profit before tax stood at Tk.866 million. Provision for after tax for the year amounted to Tk.479 million with a net profit of Tk.89 million compared to the previous year.

YEAR Operating Income(Million)

2008 1,040

2007 824

2006 701

2005 420

2004 309

Trend of operating Profit from 2004 to 2008

In Million Taka

Total Profit 1500 1000

824

701

500

1,040

420

309

0 2004

2005

2006

2007

2008

Year

Trend analysis of Deposit As of December 2008 total deposits of the bank stood at Tk.27,308 million as against Tk.17,285 million excluding call/overnight of the previous year. In the year 2008 we emphasized on lowering the rate of interest on deposits to achieve a lowering the rate of interest on deposits to achieve a lower cost of fund. The initiative is intended to encourage investment at lower rate of interest. The focus will continue in future as a part of our support towards economic developments.

YEAR Deposit

2008 27,308

2007 20,924

2006 17,285

Trend of Deposit from 2004 to 2008

2005 14,454

2004 10,450

Total Deposit

In Million Taka

30,000.00

27,308.00

25,000.00

20,924.00 17,285.00 14,454.00 10,450.00

20,000.00 15,000.00 10,000.00 5,000.00 0.00

2004

2005

2006

2007

2008

Year

Trend analysis of Investment Our emphasis on maintaining the quality of assets has rendered us a diversified and welldesigned advances portfolio. The bank recorded a 14.68% growth in investment with total investment portfolios of Tk.4,238.63 million at the end of December31, 2008 compared to Tk.5,390.03 million in 2006. YEAR Investment

2008 4,239

2007 5,390

2006 2,553

2005 2,038

2004 1,164

Trend of Investment from 2004 to 2008

In Million Taka

Total Investment 6,000 5,000 4,000 3,000 2,000 1,000 0

5,390 4,239 2,038

2,553

1,164 2004

2005

2006 Year

2007

2008

Trend analysis of Import and Export business The important value of import stood at Tk.30,311.71 million in 2008 compared with the volume of Tk.22,191.84 million in 2007. Export however, increased Tk.18,1617.43 million in the year 2008 compared with the volume of Tk.13,990.33 million in 2007.

In Million Taka

Trend of Import business from 2004 to 2008 35000 30000 25000 20000 15000 10000 5000 0 2004

2005

2006

2007

2008

Year

Total Import

Trend of Import business from 2004 to 2008

In Million Taka

20000 15000 10000 5000 0 2004

2005

2006

2007

2008

Year

Total Export YEAR Total Import Total Export

2008 33,311.71 18,617.43

2007 22,191.84 13,990.33

2006 15,457.66 11,583.64

2005 12,151.90 6,521.80sss

2004 7,923.90 4,790.80

4.1.2. SWOT Analysis of JBL The Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of JBL is described in the following table:

Table: SWOT Analysis of JBL

•

Sound profitability and growth with good internal capital generation.

•

Larger corporate client base.

•

Experienced and efficient management team and human resource.

•

Quaity products and services.

•

Better infrastructural facilities.

• •

Company reputation and goodwill. Small market share.

•

Limited branch network.

•

High concentration on fixed deposits and largescale loans.

• •

Lack of full scale automation. Scope of market penetration through diversified products.

•

Automation of transaction processes and online branch banking.

•

Government’s policy of encouraging heavy inflow of foreign investment.

•

Regulatory environment favoring private sector development.

•

Value addition in products and services.

•

Increasing purchasing power of people.

•

Increasing trend in international business.

•

It is a great Phenomenon is that Shahjalal Islami Bank Limited goes ahead in future and they done their corporate social responsibility. Increased competition for market share in the industry.

•

Frequent changes of banking rules by the Central Bank.

•

Market pressure for lowering of lending rate.

•

National and global political unrest.

•

Default culture of credit.

4.2 Findings In order to improve the service quality customers expressed different opinion from their point of view. I can summarize their opinion, which is the gist of their suggestions. They have to take some steps to improve the service quality. More branches should be opened in Dhaka city and in other cities of the country. They will have to start consumer credit scheme and other schemes that will help the consumer. It is badly needed to provide modern banking services such as Credit Card, ATM Card, Visa Card etc. Jamuna Bank Limited is providing better service comparing to other private banks. But there are almost fifty-two banks in our

country. In the near future some new banks are going to be opened. So in order to complete in the market Jamuna Bank Limited should be very careful about their service. They will have to improve service quality and provide more facilities.

• Findings in different sections of the Bank • General Banking Department •

According to some client’s opinion, introducer is one of the problems to open an account. If a person who is new in the city wants to open an account it is a problem for him/her to arrange for an introducer of SB or CD accounts holder.

o Foreign Exchange Department •

Modern technical equipment such as Fax machine is not sufficient in foreign exchange department. As a result the exchange process makes delay and it is also complicated.

o Investment Department •

Sometimes the securities taken against the loan are deliberately overvalued by the employee to unlawfully help the client. As a result if the client fails to repay the loan the bank authority can not collect even the principal money invested by selling of those assets. It is also very important factor that leads to loan default.

•

The investment department takes a long time to process a loan.

o Commendations Banking is service-oriented marketing. Its business profit depends on its service quality. That’s why the authority always should be aware about their service quality. •

To provide quality service to the customer it is necessary to have a trained team of an organization or an institution. For this reason the bank should recruit fresher, bright, energetic persons such as MBA, BBA and MBM etc.

•

Bank should offer more facilities to the customer such as Credit Card, Visa Card, Master Card, ATM machine etc.

•

As soon as possible the bank should start more branches in Dhaka City as well as in other cities of the country.

•

The bank should take attempt to enter into the share market by issuing shares to capitalize more money and invest thereafter by expanding the number of branches around the city.

•

One of the business strategies is promotion. Successful business depends on how they can promote their products or services to the customer. In this connection to improve the business status bank should introduce more promotional programs.

•

As the clients are not in favor of introducing system, if possible the rule of introducing to open an account should be changed. Because they face in many problem to arrange an introducer at the time of opening accounts.

Chapter Five Concluding Chapter 5.1 Recommendations I have the practical experience in JBL for only three months, with my experience in the bank with vast and complex banking system, it is very difficult for me to recommend. I have observed some shortcomings regarding operational activities of the bank. On the basis of my observation I would like to recommend the following suggestions: •

Though the performance of general customer service is good, but their all employees are not well trained. The department needs to recruit expert human resources to provide good customer service, which will bring effectiveness of the bank’s operation.

•

The employees are given deposit target, which creates extra pressure to them for that reason they cannot freely provide customer service. They had to spend most of their time to marketing to fill up their target. If the bank can reduce the pressure then they could be able to provide good service.

•

Margin and commission on L/Cs varies from customer to customer. A customer is allowed to open a L/C at a very low margin depends on Banker’s relationship.

•

In case of Export, the government encourages the exporters by giving different facilities like tax-cuts. I think the bank should also consider about such types of facilities to be given to the exporters.

•

In many cases, the foreign banks choose for a confirmation from other foreign banks, which is dishonor for the local bank. It proves the poor financial condition of our country. Bank should try to improve this situation.

•

To communication with the Negotiation Bank, Advising Bank, Reimbursing Bank the branch uses Telex and SWIFT. As well as these media the Bank could use the Email, which is cheaper and faster than those media.

5.2 Conclusion From the practical implementation of customer dealing procedures during the whole period of practical orientation in Jamuna Bank Limited, have reached a firm and concrete conclusion in a very confident way. Believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient considered as soon as possible. Besides, every bank has to survive amidst of a large number of banks including local and foreign. That’s why to keep pace with expected profit margin of the time being and for the future every bank should try heart and soul to please the customers in a smart and trusty way. But quite regretful to mention that most of our bank face decreasing profit trend due to switch over of their present customers to those foreign with higher customer service facilities. So, timely decision for introducing sophisticated banking instruments should be taken as early as possible. After taking effective and time defeating measures regarding efficient employees and instruments will help the local office of Jamuna Bank Limited to reach the pinnacle of success with high profit and productivity. A new bank they should be stronger in financial side because there is too much competition and new banks are growing up. Now the time for Jamuna Bank Limited to fabricate in success they have achieved and go on with its operation. The Jamuna Bank Limited have an illusion to their customers, this statement is “Your Partner for Growth” So, the Economic Development is not only facilitated but its swiftness is quickened by the appropriate development of the Investment Management system of financial mediators in the country.

Appendix JBL- Jamuna Bank Limited

ECC- Export Cash Credit

LIM-Loan against imported merchandise

FDBO- Foreign Documentary Bill

CD- Current Account.

Purchase

SB- Savings Account

FDD- Foreign Demand Draft

FDR- Fixed Deposit Reserve

FTT- Foreign Telegraph Transfer

STD- Sort term Deposit

TC- Travelers Cheque

PSS- Pension Savings Scheme

E.g.- For example

MSS- Monthly Saving Scheme

i.e.- That is.

LDS- Lakhpati Deposit Scheme

CCS- Consumer Credit Scheme

MDS- Millionaire Deposit Scheme

LRA- Landing Risk Analysis

KDS- Kotipati Deposit Scheme

L/C- Letter of Credit

MBS- Monthly Deposit Scheme

CI&E- Chief Controller of import &

DGDS- Double Growth Deposit Scheme

Export

TGDS- Triple Growth Deposit Scheme

D&B- Dun & Bradstreet

MDS- Marriage Deposit Scheme

PAD- Payment against Document

ESS- Education Saving Scheme

TL- term Loans

DD- Demand Draft PO- Pay Order TT- Telegraph Transfer OBC- Out Ward bills for collection IBS- Inward bills for collection SOD- Secured Overdraft CC- Cash Credit IBP- Inland bill purchase

Bibliography  Books 1. BIBM Text Book by Toufic Ahmed Chowdhury 2. The service of Marketing by Mubarak Hossain

 Reports 1. Annual Report of Jamuna Bank Limited (JBL). 2. Economic Trends published by Bangladesh Bank. 

Brochures of Jamuna Bank Limited (JBL).



Training papers of Jamuna Bank Limited (JBL).



Principles of Islamic Banking.



Competitive advantages of Banking and Finance.



Marketing Management by Bangladesh Bank.



Website: www.Jamunabankbd.com.