Internship Report

On
Janata Bank Limited and Its General Banking
Activities

Submitted to
Dr .Md .Jahangir Sadat
Associate professor
Department of Management
Islamic University, Kushtia

Submitted by
Sohely Akter
ID.1505071
Reg No: 395
Session. 2015-16
Department of Management
Islamic University, Kushtia

Submission date:- 15-09-2020

 Dedication

I hereby declare that the internship report entitled ''Janata Bank Limited and Its General Banking
Activites '' A Study on Chourhash Branch, Kushtia." has been prepared by me under the
supervision of Dr. Md. Jahangir Sadat, Associate Professor, Department of Management of
Islamic University.

I would also declare that the matter embodied in this report is original and neither this report nor
any part of this report has been submitted elsewhere for the award of any other any degree or any
other purpose.

Sincerely yours,

Sohely Akter.

ID:1505071.

Reg. No. 395

Session: 2015-16

Bachelor of Business Administration (BBA)

Department of Management

Islamic University, Kushtia, Bangladesh

 LETTER OF TRANSMITTAL

Date: 15/09/2020
Dr. Md. Jahangir Sadat
Associate Professor and Internship Coordinator
Department of Management
Islamic University, Kushtia

Subject: Submission of Internship Report.

Dear Sir,
It is indeed, an honor to deliver my internship report on “Janata Bank Limited and General
Banking Activities ” as a prerequisite for the completion of my BBA program. This report is
based on secondary data available as well as the information generated from my investigation. I
have invested the best effort I can to prepare this report and eventually come up with a
worthwhile conclusion .

However, had any clarification required, I would be glad providing them as best as I can.

Sincerely yours

Sohely Akter
ID: - 1505071
Reg No: 395
Session;2015-16
Department of Management
Islamic University ,Kushtia .
 ACKNOWLEDGEMENTS

First and above all else, I would like to pay my deepest gratitude to the almighty Allah who has
helped me through all the difficulties in my life and showed me the right path. It is Allah who
has made my journey into the vast sea of knowledge smooth and easier.

My sincere gratitude also goes to my advisor Dr.Md. Jahangir Sadat Associate Professor and
Internship Coordinator who has guided me from the very beginning of my Internship program.
His inspiration and encouragement has made me confident and self-dependent. His tireless
efforts and appreciate on has greatly contributed to my thesis. All the shortcomings and
weakness efforts report, however, are incurred by me.

Finally, I would like to thank all the faculty members, officials and class-mates, who are always
supportive to me.
 Certificate of Supervisor

This is to certify that SohelyAkter a student of Islamic University. ID No. 1505071 under faculty
of Business Administration have done an internship repori titled 'Janata Bank Limited and Its
General Banking Activities at Chourhash Branch Kushtia under my supervision.

The student is found to be sincere, intelligent and hardworking. The student has put in a lot of
work and has also brought forth her views and ideas which are being studied for implementation
at appropriate time.

I wish her every success in her future endeavor.

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

Dr. Md. Jahangir Sadat

Associate Professor

Department of Management

Islamic University, Kushtia.

 Executive Summary

This report starts with the analysis of the banking industry of Bangladesh. Then the analysis of
the organization which is Janata Bank Limited and finally my internship experience and learning
also include in the report. The analysis of the banking industry starts with specification of the
industry where the types of banks also included. Then the history, size and maturity of the
banking industry of Bangladesh also comprise. Then external economic factors and porter‟s five
forces also discussed in this report to understand the competitive intensity and the attractiveness
of the industry. Then the part of analysis of the organization starts with overview and history of
Janata Bank Limited. Then trend and growth of Janata Bank discuss through the figures of
deposit, net profit after tax, and earnings per share scenario. Janata banks product, customer mix
and operation also include in the report. After doing SWOT analysis of Janata bank I find that
their main strength is there large customer base, weakness in lack of technological resources
,opportunity is more experienced and managerial know how, and the threat is newly developed
privatized and foreign banks. Mostly in my internship period I work in general banking area
communication, interpersonal skills, teamwork and real world experience. From this real job
experience I also find way to improve my self-performances. After that with a relevant
conclusion this report becomes completed.
 Table of contents
SL.NO Particulars Page no.
Dedication I
Letter of Transmittal Ii
Preface Iii
Acknowledgements Iv
Certificate of supervisor V
Executive summary Vi
Chapter-1 Introduction
1.1 Introduction 1
1.2 Background of the study 2
1.3 Rationale of the study 2-5
1.4 Objectives of the study 6
1.5 Scope of the study 7
1.6 Limitations of the study 7
Chapter-2 Review of the literature and Research Methodology
2.1 Review of the literature 8-16
2.2 Methodology of the study 17
Chapter-3 General banking

3.1 Introduction 18
3.2 Strategies of Janata Bank Limited 18-19
3.3 Objectives of Janata Bank Limited 19-20
3.4 Products and services of Janata Bank Limited 20-26
3.5 Management hierarchy of Janata Bank Limited 27
3.6 Corporate vision 28
3.7 Corporate mission 28
3.8 Cash section 29-32
3.9 Disbursing cash 33
3.10 Clearing section 33-37
3.11 Account Section 37-39

3.12 Local Remittance Section 40-43

3.13 Dispatch Section 43-44
3.14 Information related to the bank 44-58
Chapter-4 Janata Bank Limited Deposit and Schemes
4.1 Deposit Section 59-63
4.2 Deposit Scheme 64-66
4.3 Consumer credit Scheme 66
4.4 Monthly Saving Scheme 67
4.5 Saving insurance Scheme 67
4.6 Calculation ,application and payment of interest in different deposit 67-70
accounts

Chapter-5 My Duties and Responsibilities

5.1 Internship Position and Duties 71
Chapter-6 Analysis Findings and recommendation
6.1 SWOT Analysis 72-76
6.2 Findings 77
6.3 Recommendation 78
6.4 Conclusion 79
References 80
 CHAPTER 1

1.1 Introduction
The purpose of this report is to analyze the operating procedure of the banking system in
Bangladesh and discuss on those issues. Inefficiencies in the financial market and institutions
inhibit the formal financial sector from performing the proper intermediation services, which
have adverse effects on the economic development of Bangladesh. Bank in general performs
three basic functions valued by the overall economy.

Banks are the life-blood of modern economy. Banks are established to earn profit and help
economic and financial activities to help economic development of a country. In such a context,
the main business of Banking is to take deposits from customers and sanction credit to the
borrowers. Thus, the Banks act as financial intermediaries.

Bank is playing a significant role in the age of modern civilization to keep the economic
development moving. The activities of the bank are needed in every economic activity. In fact
there is hardly any aspect of development activity where bank do not have role to play. A
banking system is a group or network of institutions that provide financial services for us. It
gives me immeasurable joy that during internship period, as part of the BBA program, I have the
opportunity of passing a period of three months with a renowned organization where I noticed,
executed and learned the banking practices. I am very grateful that Janata Bnak Ltd. (JB) gave
me that favor to work as an intern. JB is one of the largest banks in Bangladesh and has a
countrywide branch connection through which they provide an extensive banking service to their
customer. Customer‟s gratification is the top most priority of the bank. Bank has mentioned in
their object that customer‟s expectancy will be visible through creative financial product and
services. As an intern of Janata Bank Limited, I am preparing a report titled “Janata Bank
Limited and Its General Banking Activities ”: An Internship Report, involved various rules
and regulations, policies and procedures related to different banking actions have also been
considered here.
1
1.2.: BACKGROUND OF THE STUDY

Only a lot of knowledge will be little important unless it is applicable in practical life. So we
need proper application of our knowledge to get some benefit from our theoretical knowledge to
make it more fruitful. When we engage ourselves in such fields to make proper use of our
theoretical knowledge in our practical life situation, only then we come to know about the benefit
of the theoretical knowledge. Such an application is made possible through internship. The
internship program has the following three phases:

1. Orientation of the organization: To introduce the internee with the structure, function and
performance of the organization.

2.The project part: Pertaining to a particular problem or searching topic matching with the
internee‟s capacity, interest on the organization.

3.The report writing: To summarize the internee‟s analysis finding and achievements in the
preceding two phases.

1.3 RATIONALE OF THE STUDY:

The development of financial markets will increase the efficiency of the flow of funds between
savings and investment. Increased efficiency will take place through a variety of mechanisms:
the cost of intermediation will decrease because of increased competition to attract users and
providers of funds; the cost of rising, funds will decrease as the inflation rate declines; and funds
will increasingly be allocated to users with better investment projects. The establishment of a
market driven private banking system is linked to achieving higher employment, increased
productivity, more efficient use of resources and rapid economic growth in Bangladesh .The
health and efficiency of the financial sector are crucial to economic growth. It is the system by

2
which a country‟s most profitable and efficient projects are systematically and continuously
founded, and thus it is the mechanism which ensures that resources are directed to the most
productive sources of future growth. The financial system not only transfers funds from savers to
investors: it must be able to select projects which will yield the highest returns, accumulate
sufficient quantities of capital to fund the range of investment projects across economic
activities, account for price risks across assets, monitor performance, and enforce contracts.The
exit question is particularly difficult in the financial sector although in Bangladesh this is a
pervasive problem in the economy. A financial firm can leave the market in a number of ways:

a) Go out of business or be closed down by the bank supervision authority;

b) Merger with another financial institution; or
c) Take over by the bank supervision authority and subsequently resolved to the public.
These methods are important to ensure that unsuccessful financial firms do not continue to risk
depositors and Government‟s money. The management of failed financial institutions should be
fired or demoted. However, the authorities have generally been permissive in allowing continued
operation by existing management of the banks. It is important the inefficient banks be reduced
in importance. New banks are needed to provide the necessary financial services while old
inefficient banks strive to survive. If the existing in efficient banks can reform themselves, then
they can fight for market share with the new banks. However, if inefficient, losing banks are left
in the market without reduction in size, then the scope for new banks is reduced and the financial
system cannot be improved. Higgins observes, “Fundamentally, growth consists of rising
national and per capita real income, development entails a good deal more- structural change,
technological advance resource discovery, and closing sectoral and regional gaps. Each economy
can reasonably grow without development, but it cannot maintain the level of development
already achieved without a considerable rate of growth.
For maintaining a sustained rate of growth, capital accumulation is a necessary though not a
sufficient condition. The basic requirement for capital accumulation is the existence of a
widespread and efficient financial structure that can mobilize savings and channel the same for
prudent investments. In this regard financial institutions indirectly play a key role in the capital
3
formation and economic development of a nation. Goldsmith states that existence and

development of a super structure of financial instruments and financial institutions is a necessary

condition of economic growth. On the contrary, absence of an adequate financial superstructure
allows people to save and invest in real and speculative assets rather than in financial assets.
Given the nature of risk, cost and liquidity of the former, only large savers
can avail of those, while small ones resort to hoarding in the forms of cash, commodities, land,
precious metals, jewellery etc. If saving is hoarded in these forms, it fails to contribute to real
capital formation.
The large savers productive investment opportunities are also limited by their individual access
to markets and indivisibilities of many productive investments. All these indicate that a less
developed financial structure is an obstacle to capital formation and associated with a greater
proportion of savings being invested in unproductive assets relative to productive ones.
Significance of financial institutions both as repositories of a community‟s savings and as
purveyors of credits for economic activities is emphasized by many economists. Gurley and
Shaw observe that the financial intermediaries exploit economies of scale in lending and
borrowing. The states that they provide to savers a convenient avenue for investment of surplus
funds and to investors a source of finance. Bandyopadhyay remarks that they act as bridges
between ultimate savers and investors. And in that process they raise the level of investment,
which in turn, raises the level of income. Goldsmith also observes, Once financial institutions
exist, a units investment may be larger or smaller than its saving. This is where the importance of
monetary financial instruments lies, as saving not invested within the unit will now yield income
and will thus provide an incentive to saving in excess of the sterile accumulation of money.
Increasing financial intermediation provides wide ranges of financial assets and liabilities to the
general public, facilitates the flow of inter-regional and intersect oral saving distributes risk more
evenly on investments and gets advantages of administrative and other economies of scale in
investing as well as mobilizing saving. Widening and deepening the geographical and functional
scope of commercial banking system usually gets the first priority in the process of the
development of financial superstructures in the developing countries. This is because of the fact
4
that at the early stages of economic development commercial banks are required to act as main
actors in the field of financial development, since paucity of specialized financial institutions
exists at those stages.

This financial sector requires a highly skilled manpower and quality information to undertake
this vast range of tasks. The most common role of government in successful financial systems
has been to ensure that financial institutions serve these vital functions as efficiently as possible.
Those roll has taken the form of regulation to monitor and enhance bank solvency and to limit
financial sector instability. The efficiency of national investment depends on the complimentary
roles of both the private and public sectors. So, for providing quality education in the banking
sector and for preparing skilled and efficient man power to rebuilt and enhance profitability of
the banking sector and thus serving vital role in the economy of the country, this sort of study
has rational ground.

5
1.4.: OBJECTIVES OF THE STUDY.

Broad Objective
Internship is a process to achieve practical knowledge about some theoretical lesson.Its
most important aspect is to acquire knowledge about the real position. As a practical
subject, Management needs some practical knowledge which covers by internship. In this
regard, the main objective of the study is to know practically the functions of general
banking system studied on Janata Bank Limited (JB).

Specific Objectives
The specific objectives of this study are as follows:
To know about the management system of Janata Bank Limited as a public commercial
bank, its formation, and its functional and financial aspects.
To have a clear knowledge about all the division and departments of Janata Bank
Limited Chourhash Branch. Kushtia
To achieve the practical knowledge that will be helpful for future life.
To apply theoretical knowledge in the practical field.
To have exposure to the functions of general banking section.
To observe the working environment in commercial banks.
To study existing banker customer relationship.
To be acquainted with the procedures of several schemes of deposits.
To recommend some suggestions based on findings.
To improve corresponding, report writing ability.

6
1.5.: SCOPE OF THE STUDY.

Banking sector is a large and difficult area. A Bank has different products, different services and
different customers. Different departments of a Bank perform different activities. However; this
study is done based on performing two-month internship program by the Senior Principal Officer
in the JANATA Bank Ltd, at Regional Office Kushtia. The scope of the organization part covers
the organization structure, background, objective, function, departmentalization and business
performance of JBL as a whole. The main part covers the operation scenario of a branch of JBL.
This refers how the bank helps the customer in general banking and foreign exchange banking. It
also covers loan and advances facilities of JBL, credit appraisal system, and activities of credit
department.

1.6.: LIMITATIONS OF THE STUDY.

Though internship program is a practical oriented program, it faces some difficulties. The major
difficulties I have faced during my period in JANATA Bank Ltd. are as follows:
 Initially, adjustment with the new environment, a sudden change of studentship to a job-
like situation is a problem.
 Usually company is not willing to provide their actual data of financial statement.

 Short time is another major problem for a sound internship report. To prepare a report on
some issues takes much time but in practice, we are given a short time.

 JBL as a commercial bank they are very busy and they could not able to give me enough
time for discussion about various topics.
 Personal barriers like inability to understand some official terms, office decorum etc.
creates a few problems to me.
 Finally, the lack of the depth of my knowledge and the analytical capacity for writing
such report is also a short comings of this study.
7
 CHAPTER-2
REVIEW OF THE LITERATURE AND RESEARCH METHODOLOGY
2.1 REVIEW OF THE LITERATURE
Definition of Bank

Different authors, writer and economists have given different definition of „Bank‟. They present
„Bank‟ as an institute from different angel. They define „Bank‟ structurally and functionally. For
example, “Bank is such a financial institution which collects money in current, savings or fixed
deposit account; collects cheques as deposits and pays money from the depositors‟ account
through cheques.”-----Sir John Pagette. “Bank provides service to its clients and in turn receives
perquisites in different forms.”---P.A. Samuelson. “Bank is a financial intermediary institution
which deals in loans and advances”---Cairn Cross. “Bank is an institution which collects idle
money temporarily from the public and lends to other people as per need.”----R.P. Kent. “Bank
is such an institution which creates money by money only.”-----W. Hock. Indian Company Law
1936 defines Bank as “a banking company which receives deposits through current account or
any other forms and allows withdrawal through cheques or promissory notes.”

Meaning and origin “Bank”

The word “Bank” is broadly and widely utilized and circled. The “Bank” in English conveys a
similar importance in Bengali. The inception of English word “Bank‟ appeared (when, where
and how) which couldn't be particularly recognized. The history in regards to the inception of
“Bank‟, even after the twelfth century, isn't likewise clear which has been founded on surmises.
As per some essayist the word “Bank” was gotten from “Banco”, “Bancus”, “Banque” or “Banc”
all of which mean a seat whereupon the medieval European Money-banks and Money –
Changers used to show their coins. At any rate this word has been being used from the medieval
times in association of a bank. In the expressions of German essayist W. Frankace, a long stool
or seat was said to be supplanted by Bank, Bangke and so on in the Scandinavian and Mid-2
European nations.
8
Once more, Dutch and French words “Banque”, “Bangko” were utilized to mean stool or seat
and in course of time the word “Bank” happened. In the Medieval age Italian states were sound

and dissolvable monetarily and industrially. Around then a gathering of individuals used to direct
business of exchange of cash sitting on a stool or seat which was supplanted by “Banco,”
“Banko” “Banca”, “Bangk”, “Bancus”, “Banc” etc. It is accepted that the word “Bank” was
started fromthese words. In the later age, an English author Maclead tested the above concepts.
His dispute was that the cash loan specialists and cash changers used to show their coins which
were not named as “Banco”, “Banque”, “Banke”, “Banca”. Be that as it may, Banco in Italy and
Banke in German and Australia were comprehended as open obligation or issue of paper cash.
As he would see it, these words were utilized with the end goal of financial exercises of various
nations of Europe. Another British author Chamber, in his Twentieth Century Dictionary,
obviously expressed that the word “Bank” is gotten from Banca and Banque. The French still
uses “Banque” set up of the word “Bank”. In the mid of twelfth century Italian states were under
political turmoil and in 1150 Venice was burdened with foes. Thus, the Government presented
open obligation bought in advance @ 5% necessarily on people in general for meeting monetary
crisis. During that time this advance was called Banke, Banco, Compara, and Monte and so on.
Such a large number of scholars surmise that the German word “Banke” and the Italian word
“Banco” have been changed into English word “Bank”.

Objectives of “Bank”
To build up as a foundation for expanding benefits and to lead general monetary exercises.
To gather reserve funds or sit out of gear cash from people in general at a lower rate of
premiums and loan these open cash at a higher rate of premiums.
To keep up financial solidness by methods for controlling currency advertise.
To stretch out co-activity and advices to the Govt. on monetary issues.
To help the Govt. for trade& business and financial advancement.
To issue and control notes and money as a national bank.
To keep up and control trade rates as a national bank.
9
To make affinity of reserve funds among the general population.
To rouse individuals for contributing cash with a view to acquiring dissolvability them.
To make cash against cash as an option for improving supply of cash.
To develop capital through reserve funds.
To speed up ventures.
To stretch out administrations to the clients.

Meaning of Banking
Simply banking means a business strategy that is offered by a Bank. Managing of Banking can
be characterized as the business movement of tolerating and defending cash possessed by
different people and elements, and after that loaning out this cash keeping in mind the end goal
to acquire a benefit. Banking is a business that handles money, credit, and other budgetary
exchanges. Banks give a sheltered place to stock supplementary money and credit. The banking
system nowadays incorporate issuance of charge and MasterCard‟s, giving safe care of important
things, lockers, ATM administrations and online exchange of assets over the nation. It will be
said, now a days banking service plays inaudible, essential role in our everyday life. Banking
business has done marvels for the world economy. The basic looking technique for tolerating
cash stores from savers and after that loaning a similar cash to borrowers, saving money
movement supports the stream of cash to beneficial utilize and speculations. This thusly enables
the economy to develop. Without managing an account business, reserve funds would sit still in
our homes, the business people would not be in a situation to collect the cash, customary
individuals envisioning for another auto or house would not have the capacity to buy cars or
houses.

10
Over view of banking sector in Bangladesh
Financial system in Bangladesh
The Financial System is an arrangement of institutional game plan through which surplus units
exchange their store to shortage units. At show the financial system in Bangladesh is basically
made out of two sorts of foundations like banks and non-bank monetary establishment (NBFIs).
The formal financial segment in Bangladesh incorporates: (a) Bangladesh Bank as the national
bank, (b) 48commercial banks, including 4 Government possessed business banks, 30 residential
private banks (PCBs) (of which 6 banks are working under Islamic Shariah), 9 remote banks
(FCBs)(of which 1 bank is working as Islamic bank); and 5 government-claimed particular
banks(DFIs); (c) 28 non-bank money related foundations (NBFIs)-
Authorized by the Bangladesh Bank); (d) 2large government-claimed insurance agencies (life
and general) and 60 private possessed (17 life and 43 general) insurance agencies; (e) 2 stock
trades and, (f) some co-agent banks. Besides, a great number of semi-formal small scale back
organizations (MFIs) likewise are working in Bangladesh.
Banking sector in Bangladesh
In our nation, any organization, which acknowledges, to lend or speculation stores of cash from
open, repayable on request or something else, and with transferable by checks draft request and
generally can be named as a bank. Banking sector of Bangladesh is one of the major sectors,
which contributes significantly to the national economy.

Banking history of Bangladesh

The banking system framework at autonomy comprised of two branch workplaces of the
previous State Bank of Pakistan and seventeen huge business banks, two of which were
controlled by Bangladeshi premiums and three by nonnatives other than West Pakistanis. There
were fourteen littler business banks. For all intents and purposes all keeping money
administrations were pack in urban regions. The recently autonomous government promptly
assigned the Dhaka branch of
the State Bank of Pakistan as the national bank and renamed it the Bangladesh Bank. The bank
was in charge of managing cash, controlling credit and money related strategy, and directing
11
trade control and the authority remote trade saves. The Bangladesh government at first
nationalized the whole household keeping money framework and continued to revamp and
rename the different banks. Outside claimed banks were allowed to keep working together in
Bangladesh. The protection business was likewise nationalized and turned into a wellspring of
potential venture stores. Agreeable credit frameworks and postal investment funds workplaces
took care of administration to little individual and rustic records. The new keeping money
framework prevailing with regards to building up sensibly effective methods for overseeing
credit and remote trade. The essential capacity of the credit framework all through the 1970s was
to fund exchange and people in general division, which together retained 75 percent of aggregate
advances. The administration's support amid the late 1970s and mid 1980s of farming
improvement and private industry got changes loaning techniques. Overseen by the Bangladesh
Krishi Bank, a particular rural managing an account establishment, loaning to ranchers and
anglers significantly extended. The quantity of rustic bank offices multiplied in the vicinity of
1977 and 1985, to more than 3,330.
Denationalization and private modern development drove the Bangladesh Bank and the World
Bank to concentrate their loaning on the rising private assembling segment. Planned bank
advances to private horticulture, as a level of groups oral GDP, ascended from 2 percent in FY
1979 to 11 percent in FY 1987, while advances to private assembling ascended from 13 percent
to 53 percent. The change of fund needs has carried with it issues in organization.

12
List of Banks in Bangladesh:
In present scenario there are 63 banks operating banking activities in Bangladesh. Among them
58 are scheduled banks and 5 are non-scheduled Banks
Scheduled Banks
A. Central Bank Commenced on 1972
B. State Owned Commercial Banks
Banks Established
1. Agrani Bank Limited 26 March 1972

2. Janata Bank Limited By Bank Nationalizations

Ordinance 1972
3. Rupali Bank Limited By Bank Nationalizations
Ordinance 1972
4. Sonali Bank Limited By Bank Nationalizations
Ordinance 1972
5. Bangladesh Development Bank On 16 November, 2009 by amalgamation
Limited of Bangladesh Shilpa Bank (BSB) and
Bangladesh Shilpa Rin Sangstha (BSRS)

6. Basic Bank Limited 21 January, 1989

C. State Owned Specialized Banks
1. Bangladesh Krishi Bank. 1973
2.Rajshahi Krishi Unnayan Bank(RAKU) 15 March 1987 (President‟s ordinance
No. 58 of 1986)

3. Probashi Kallyan Bank 2010

D. Private Commercial Banks (PCBs)

I. Conventional PCBs

13
 1. AB Bank Limited 12A pril, 1982
2. Bangladesh Commerce Bank Limited 16 September 1999
3. Bank Asia Limited 27 November, 1999
4. Brac Bank Limited 4 July, 2001
5. City Bank Limited 27 March, 1983
6. Dhaka Bank Limited 5 July, 1995
7. Dutch-Bangla Bank Limited 3 June, 1996
8. Eastern Bank Limited 1992
9. IFIC Bank Limited 1976
10. Jamuna Bank Limited 3 June, 2001
11. Meghna Bank Limited 21 April. 2013
12. Modhumoti Bank Limited 19 September 2013
13. Modhumoti Bank Limited 19 September 2013
14. Mutual Trust Bank Limited 24 October, 1999
15. National Credit and Commerce In 1993 as commercial Bank
Bank Limited
16. NRB Bank Limited 2013
17. NRB commercial Bank Limited 2013
18. NRB Global Bank Limited 2013
19. One Bank Limited May, 1999
20. Premier Bank Limited 10 June, 1999
21. Prime Bank Limited 17 April, 1995
22. Pubali Bank Limited By Bank Nationalizations Ordinance
of 1972, denationalized in
the year 1983.
23. South Bangla Agriculture and
CommerceBank Limited

25 March, 2013

14
 24. Southeast Bank Limited March, 1995
25. Standard Bank Limited 3 June, 1999
26. The Farmers Bank Limited 11 September, 2012
27. Trust Bank Limited 1999
28. United Commercial Bank Limited 1983
29. Uttara Bank Limited Bank Nationalizations Ordinance
of 1972, Denationalized in 1983
30. Shimanto Bank Limited 21 July, 2016
Sources: B.B.S

II. Islami Shariah Based PCBs

1. Al-Arafah Islami Bank Limited 27 September, 1995
2. Exim Bank Limited 3 August, 1999
3. First Security Islami Bank Limited August 29, 1999
4. ICB Islami Bank Limited April, 1987
5. Islami Bank Bangladesh Limited 13 march, 1983
6. Shahjalal Islami Bank Limited 10 May, 2001
7. Social Islami Bank Limited 22 November, 1995
8. Union Bank Limited 2013

E. Foreign Commercial Banks

Banks Started Operation in Bangladesh
1. Bank Al-Falah Limited 2005
2. Citibank N.A 1995
3. Commercial Bank Of Ceylon PLC 2003
4. Habib Bank Limited 1976
5. National Bank of Pakistan August, 1994

15
6. Standard Chartered Bank 1905,
7. State Bank of India
8. Woori Bank September 1996
9. HSBC Bank 1996

Sources: B.B.S

Non Scheduled Banks

1. Grameen Bank
2. Jubilee Bank
3. Ansar VDP unnayan Bank
4. Karmashangostha Bank
5. Polli Sonchay Bank

Sources: B.B.S

16
2.2 METHODOLOGY OF THE STUDY
Types of Study
This report is based on qualitative type of study. The methodology of this report is totally
different from conventional reports. This report basically emphasizes on the practical
observation. Almost the entire report has been conducted based on practical
observation and short survey.

Sources of Data
Data is collected from both primary and secondary sources.

Primary sources of data

Face to face conversation with the bank employees and staffs.
 Informal conversation with consumers.
Practical work exposures from the different desks of the departments of the
Branch.
Secondary sources of data
Annual report of Janata Bank Limited (JB)
Different manuals of Janata Bank Limited(JB)
Different circulars of Janata Bank Limited(JB)
News papers

17
 CHAPTER-3
GENERAL BANKING

3.1 INTRODUCTION
General banking department is the heart of all banking activities. This is the busiest and
important department of a branch, because funds are mobilized, cash transactions are
made clearing, remittance and accounting activities arc done here. Since the bank is
confined to provide the services every day. General banking is also known as 'retail
banking. In a Janata Bank Ltd Chourhash Branch, the following departments are under general
banking section:
Account opening section
Deposit section
Cash section
Remittance section
Clearing section
Accounts section

3.2.: Strategies of Janata Bank Limited

2 To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund

To strive for customer satisfaction through quality control and delivery of timely services

To identify customers' credit and other banking needs and monitor their perception
towards the performance in meeting those requirements

To review and update policies, procedures and practices to enhance the ability to extend
better service to customers.

18
 To train and develop all employees and provide them adequate resources so that customer
needs can be reasonably addressed.

To promote organizational effectiveness by openly communicating company plans,

policies, practices and procedures to employees in a timely fashion
To diversify portfolio both in the retail and wholesale market

To increase direct contact with customers in order to cultivate a closer relationship

between the bank and its customers.

3.3 Objectives of Janata Bank Limited:

Janata Bank Ltd. has the following objectives.

To earn and maintain CAMELS 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 ensu eanad equate 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 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.

19
 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 commit

3.4 Products and Services of Janata Bank Limited:

Deposit Account
Deposit Schemes
Loan Account
Remittance and Collection
Distribution
Import and Export handling and Financing
Loan Syndication
Investment Banking
Corporate Banking
Consumer Credit Scheme
International Banking

3.4.1.: Highlights of different services offered by JANATA Bank Limited:

JBL as one of the leading commercial bank provides various services to its customers. These
services are given below:

A.: Personal Banking Services

JBL offers the Personal Banking Services like Current Deposit Account, Savings Deposit
Account, Short Term Deposit Account, and Fixed Deposit Accounts. It also offers attractive rates
on various deposit schemes.

20
B.: Corporate Banking Services

Janata 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 a project finance, term loan, import or export deal, a working
capital requirement or a forward cover for a foreign currency transaction, the Corporate Banking
Managers will offer you the accurate solution. The 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. You can leverage on the
know-how in the following sectors mainly:

 Agro processing industry

 Industry (Import Substitute / Export oriented)

- Paper & Paper Products

- Engineering, Steel Mills

- Chemical and chemical products etc.

21
  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

C:Utility Services of the Janata Bank Limited.

Besides normal banking operation, Janata Bank Limited offers special services to a large number
of clients/agencies throughout the country. Under the network of utility service, customers of
different govt. organizations, corporate bodies, local bodies, educational institutions, students,
etc are continuously getting benefits from the Bank.

D:Janata Bank Limited's utility services are :

Bills Collection:

 Gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and Distribution
Companies.
 Electricity bills of Dhaka Electricity Supply Authority, Dhaka Electricity Company,
Bangladesh Power Development Board and Rural Electrification Board.
 Telephone bills of Telegraph and Telephone Board.
22
  Water/Sewerage bills of Water and Sewerage Authority.
 Municipal holding tax of City Corporation/Municipalities.
 A pilot scheme is underway to provide personalized services to our clients.
Payments made on behalf of Govt. to:

 Non- Govt. teacher‟s salaries.

 By Bank Nationalization Ordinance of1972, Denationalized in 1983

 Girl Students scholarship/stipend & Primary Student Stipend.

 Army pension.
 Widows, divorcees and destitute Women Allowances.
 Old-age Allowances.
 Food procurement Bill

E.: Other services:

Loan for Women: Housewives with reasonable income of the spouses are also eligible
to avail this loan. The loan can be availed for the purchase of household appliances,
house renovation.

Foreign Trade: International Trade forms the major business activity undertaken by
Janata 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.

Industrial Credit :Agriculture Loan: Janata Bank Provides Loans for Agro Industries
at a concession.
23
 Trading of Government Treasury Bond & Other Govt. Securities: The Bangladesh
Bank for trading 5 years & 10 Years Treasury Bonds and other Government Securities
have nominated Janata Bank Limited as a Primary Dealer.

F.: Online Banking:

Janata Bank Limited has introduced real-time any branch banking. Now, customers can
withdraw and deposit money from any of its 139 major branches and a massive computerization
program is going on over the country.

All the existing customers of Janata Bank Limited will enjoy this service by default.

Key features:

 Centralized Database
 Platform Independent
 Internet Banking Interface
 ATM Interface
 Corporate MIS facility

Delivery Channels:

 Branch Network
 ATM Network
 POS (Point of Sales) Network
 Internet Banking Network

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G.: Q-Cash:

Janata Bank Limited, first among the Nationalized Commercial Banks, has introduced ATM
Services. Janata 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 Dhaka and Chittagong.

With Janata Bank Q-Cash ATM card customer 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
 And more to come Is Q-Cash

The Consortium Member Banks are:

25
 Janata Bank Limited

Arab Bangladesh Bank Limited IFIC Bank Limited

Mercantile Bank Limited Jamuna Bank Limited

Eastern Bank Limited Pubali Bank Limited

Mutual Trust Bank Limited NCC Bank Limited

The City Bank Limited Trust Bank Limited

National Bank Limited Shahjalal Islami Bank Limited

Sonali Bank Limited Uttara Bank Limited

Basic Bank Limited

* Figure : Consortium member of Banks

26
3.5 Management hierarchy of Janata Bank Limited:

Managing Director (MD)

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Senior Executive Officer (SEO)

Executive Officer (EO)

Principal Officer (PO)

Senior Officer (SO)

Management Trainee Officer (MTO)

Junior officer (JO)

27
3.6 Corporate Vision

To be in the forefront of national development by providing all the customers inspirational

strength, dependable support and the most comprehensive range of business solutions, through
our team of professionals who work passionately to be outstanding in everything we do. To be
the effective largest commercial bank in Bangladesh to support socio-economic development of
the country and to be a leading bank in South Asia.

“A Bank with a difference” is the motto of Janata Bank Limited. So the motto itself is self-
explanatory to deliver the vision of the bank. Janata Bank limited is prepared to meet the
challenge of the 21st century well ahead of time. To cope with the challenge of the new
millennium it hired experienced and well-reputed banker of the country from the inception. The
bank has efficient and dedicated professional and equipped with modern technology to provide
the best service in the need of the people and thus to realize its vision. So the Bank defined:

3.7 Corporate Mission

The mission of JANATA Bank Ltd. is to provide service to its clients with the help of a skilled
and dedicated workforce whose creative talents, innovative actions and competitive edge make
our position unique in giving quality service to all institutions and individuals that we care for.
JANATA Bank is committed to the welfare and economic prosperity on the people and the
community, for the Bank derives from them it‟s inspiration and derives for onward progress of
prosperity. JANATA Bank want to be the leader in the among banks in Bangladesh and make
it‟s indelible mark as an active partner in regional banking operating beyond the national
boundary. In an intensely competitive and complex financial and business environment,
JANATA Bank particularly focuses on growth and profitability of all concerned.

JBL will be an effective commercial bank by maintaining a stable growth strategy, delivering
high quality financial products, providing excellent customer service through an experienced
management team and ensuring good corporate governance in every step of banking network.

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3.8 Cash Section

The Janata Bank Limited has an equipped cash section. Cash is received and disbursed in this
section.

Cash Management:

Cash Receipt and Payment, Cash Safe Keeping:

Cash management at the Janata bank chourhash branch includes following activities:
Receiving of cash.
Payment of cash.
Daily balancing of cash.
Scrutiny of cash.
Safe keeping of cash.
Cash remitta

A. Receiving cash

Any person wants to deposit money fills up the deposit slip or pay in ship and gives the form
along with the money to the officer. The cash officer checks the A/C number, amount of taka
both in words and in figure. Then he gives the entry to the receiving cashbook and also writes the
denomination of currency at the book of deposit slip. Then the officer sends the deposit slip with
counterfoil credit voucher and cashbook for rechecking the particulars and for a second signature
to the head. After this second signature a stamp “Cash Received” is given over the credit
voucher. At the end of the day total of scroll book are entered in the cashbook and total of the
credit vouchers are found out and checked with the previous entries. The process is same for
cash received the date of the next day.

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Receiving Process:

 Scrolling.
 Cash Receiving.

Scrolling Procedure:

Checking of deposit vouchers.

Entry in scroll book.
Affix scroll stamp number.
Put the SI number in deposit voucher.
Put signature in the deposit voucher.
Pass on the credit voucher to the receiving cashier.
At the close of business hour sum up the register and tally it with the receiving registers .
Cancel the un-received figure and put signature.
Write in word the total and affix stamp number near the total.
Checked by officer and countersigned.

Cash receiving procedure:

Check the –Amount (word and figure), Account number, Date, Name of account
Scroll number etc.

Count the cash and write the denomination on the back page of the voucher.
Write the figure in write on the front side of the voucher and put signature.
Cash officer should use red ink to write over the voucher.
Affix cash receive stamp number on the face of the voucher and in the counter foil.
Entry the received amount to receiving cashier book.
Send the voucher with counter foil and receiving register to the officer for signature .
Send the voucher to respective department.
Total the entries and the total it with the scroll total.
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 Write in word the total amount and put signature.
Checked by officer and countersigned.
Sort, stitch and bind the cash.
Hand over the cash to chief cashier.
B.: Payment of Cash:

Token Procedure:
Payment Procedure:
Token Procedure:

Checking of the debit vouchers.

Take signature of the bearer of the instrument in the backside.
Entry in token book.
Affix token stamp number in the voucher.
Put the SL number in debit voucher.
At the close of business hour sum up the entries and balance it with the payment total.
Cancel the un-paid figure and put signature.
Write in word the total amount and put signature.

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Payment Procedure:

Every payment must be paid in due course.

Scrutiny of the instrument before payment.
Check tally book.
Passed for payment by canceling officer.
Amount, Date, Endorsement.
Call token number and check token.
Obtain bearer signature on the backside of the instrument.
Tally the signature with the same obtained at the time of token.
Release tally book number.
Total the tally book.
Others
Balancing, Checking, and Safe Keeping of Cash:

At the close of business when receiving and payment cashier‟s books are
balanced the cash balance book is written and agreed with the cash in hand.

The book is checked and signed by the cashier.

After cash balance book is written, the Cash Position Memo is written in dupli
cate; the memo is checked and signed by the cashier.

When cash balance book is balanced the manager is assigned to the checking of
cash is informed to check the cash.

The cash is counted by the checking officer.

The entries of denominations of notes and coins in the cash balance book are
compared with the denominations of notes and coins counted.

32
Checking or Scrutiny of cash in hand:

Non-issue.
Reissue.
Mutilated.
Forge notes.
Note packing slip signature, recounting signature and stamp.
Count the loose cash including coin.
Count the bundles and check them also.
Check Patty Cash, Stock of Prize Bond and Late paid and received cash.

3.9 : Disbursing Cash

The JBL,Chourhash branch,Kushtia receives various financial instruments for encashment. The
common instrument handled by the branch is cheque, demand draft, pay orders, mail transfer
receipt, and telegraphic transfer receipt and debit cash vouchers etc.

If the instrument is all right, it is (cheque) sent for posting. After posting, signature is verified by
the Head. Then the cheque is sending for cancellation. After checking the A/C number, payee
instruction and date the cancellation, officer cancels the cheque. There after the payment is done.
The process is same for other financial instrument along with the clearing step. Bearer cheque is
paid in cash and cross cheque is balanced to the A/C.

3.10: Clearing Section

Clearing is one of the most magical parts of modern banking. Now days, the banking activities is
boundless. Most of the banks are linked with other banks due to inter bank transactions. Clearing
is the only process by which these transactions are settled.

33
Clearing House is a centralized and computerized system for settling indebtedness between its
member banks. Clearing House enables the member banks to offset claims against one another
for checks and orders paid into banks other than those upon which they were drawn.

Types of Clearing:

There are two types clearing

 Outward Clearing
 Inward Clearing

Outward Clearing:

When a particular branch receives instructions drawn on the bank within the clearing zone and
sends those instructions for collection through the clearing arrangement is considered in outward
clearing for that particular branch. This branch is known as collecting branch.
Inward Clearing:

When a particular branch receives instructions, which are on themselves and sent by other
member banks for collection are treated as inward clearing of that branch.

Procedures of Clearing:
A. Procedure of outward clearing

The instrument is checked for apparent discrepancy and is compared with the particular
noted in the pay-in-slip.
The instrument is deposited duly entered in the pay-in-slip or voucher.

34
In case an order instrument is being deposited in second payee‟s account, guarantee is
obtained from the second payee and is attached to the pay-in-slip.
In case the payee‟s name on the specially crossed instrument differs slightly that of the
depositor, the instrument may be accepted but only from customers well known to the
bank and after obtaining an indemnity which is attached to the pay-in-slip.
Stamping:
Special Crossing: On the instrument

Clearing Stamp: Both on instrument and pay-in-slip.

Endorsement: Back of the instrument.

Duly signed and return of counterfoil to the customer.

The particulars of the instrument and voucher are entered in the Outward Clearing
Register/Computer.
The Register is balanced; the vouchers are separated from the instruments.
Prepare voucher: Dr. Suspense A/C: Clearing Adjustment
Cr. All pay-in-slip/vouchers

Voucher to be passed on the following working day.

Sorting of instruments bank-branch wise and accordingly prepares sub-main schedules.

Prepare House page according to main schedules.
Tallied house with Outward clearing Register.
The house with instrument sent to Principal/Local Office/Main branch.
In the following working day prepared voucher is to be passed. If any return and unpaid
instrument is received from principal branch, in addition to above voucher the following
voucher will be passed.

35
 Dr. Party A/C
Cr. Suspense A/C: Clearing Adjustment
When advice is received from Principal/Local Office, than following voucher is to be
passed.
Dr. Head office A/C
Cr. Suspense A/C: Clearing Adjustment
Procedure of inward clearing

First tire: Clearing House (Bangladesh Bank, JBL).

The instruments are drown on the bank are received from other banks in the clearing
house.
The amount and number of instruments received are entered in the house book from the
main schedule of respective banks.
The amount of instruments delivered, received and the differences are written on a figure
provided in the clearing house.

Second tire: Principal Branch/Local Office/Main Branch

The instruments with schedules are arranged branch wise.

The amount of each schedule received is entered in the house pages of the respective
branch.
The respective house pages are totaled and check the amount with total amounts
instruments received from all banks.
The instruments are sent to respective branches with the slip showing total amount and
number of instruments.
The instruments sent to the branches concerned for clearance and Advice is collected
from them for honored cheques.
36
Third tire: Paying Branch
Particulars of the instruments are compared with the schedule.
The instruments are sent to the respective departments for honoring them.
For the total value of honored cheque pass the following vouchers:
 Dr. Party A/C (already debited by instruments)

 Cr. Head Office A/C

Dishonored cheques (if any) with reason, memo and Credit Advice sent Principal Branch.

3.11.: Account Section

This is the most confidential department of a bank. Recording all kinds of transactions of the
branch, confirming their accuracy and preparing statements are the main job of this department.
Now a day under computerized banking system, the jobs of accounts department become very easy.
Now the computer directly prepares the clean cash statement on party ledger vouchers. The
function of the accounts department can be divided into two parts:

a) Daily function
b) Periodical functions

Daily functions:

The routine daily tasks of the accounts departments are as follows:

Record the daily transactions in the cash book.
Record the daily transactions in general and subsidiary ledger.
Prepare the daily position of the branch comprising of deposit and cash.
Prepare the daily statement of affairs showing all the assets and liability of the branch as
per ledger and subsidiary ledger separately.

37
 Pay all expenditure on behalf of the branch.
Make salary statement and pay salary.
Checking whether all the vouchers are correctly passed to ensure the conformity with
the `Activity Report'; if otherwise making it correct by calling the respective official to
rectify the voucher.
Records inter branch fund transfer and providing accounting treatment in this regard.

Periodical Tasks:

Prepare the monthly salary statements for the employees.

The routine periodical tasked performed by the department are as follows:
Publish the basic data of the branch.
Prepare the weekly position for the branch, which is sent to the Head Office to maintain
Cash Reserve Requirement.
Prepare the monthly position for the branch, which is sent to the Head Office to maintain
liquidity requirement.
Prepare the weekly position for the branch comprising of the break up of sector wise deposit,
credit etc.
Prepare the weekly position for the branch comprising of the denomination wise statement
of cash in tills.
Preparing the budget for the branch by fixing the target regarding profit and deposit to take
necessary steps to generate and mobilize deposit.

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System of Accounting

The following ledgers are maintained and statements are prepared in the Accounts Departments-

General Ledger
Transfer Book
Supplementary
Clean Cash Book
Subsidiary Ledger
o Income Ledger
o Expenditure Ledger
o Sundry Asset Ledger
o Sundry Deposit Ledger
o Suspense A/C. Ledger
Voucher Register
Balance Book
Daily Statement of Affairs
Daily Position Statement
Weekly Position
Provisional Income & Expenditure Statement
Accounts Monthly Statement
Salary Statement
Half-yearly Statement
Annual Closing Balance
Statement of Reconciliation.

39
3.12.: Local Remittance Section

Commercial banks in Bangladesh offer the facility of transferring funds, from one place to
another, to their customers as well as to the general public. Such transfer of funds can be affected
either through Demand Draft or Telegraphic Transfer or Mail Transfer. The aforesaid methods of
remitting money from one place to another within the country are known as Remittance.

Demand Draft (DD):

Demand draft is a written order of one branch upon another branch of the same bank, to pay a
certain some of money to or to the order of a specified person. Drafts are not issued payable to
bearer. In practice, drafts are not to be drawn between branches within the same city.

Issue of Demand Drafts:

Application From fill-up.

Cash deposit.
Draft preparation.
Draft issue register.
Br.-wise serial number.
DD number inserted in voucher.
Applied test number.
Signatures on DD.
Open as per desire of the customer.
DD hand over to customer.
Issue a cost memo.
Prepare advice.
Signatures on advice and sent to respective Br.
40
Payment of Demand Drafts.

Date, amounts in words and figures Br. Drawn upon, signature are checked.
Payment not stopped –ensure.
Test number agrees.
Payment makes over counter.
Collection – stamp, crossing, endorsement.
Posting.
Cancellations.
Mail Transfer (MT):

Payment instruction is send by one bank to another bank by mail. Payment is made to the
beneficiary as per instruction in the MT.
A Mail transfer is in form, a request addressed by one branch of a bank to another branch to pay
stated sum of money to a named party and, as the same implies the instructions are by mail duly
authenticated under authorized signatures.

Telegraphic Transfer (TT):

TT is affected by tile bank through tested message attested by secret check signal, on receipt of
which tile paying officer pay the amount to the payee in cash through a telegraphic payment
order or credit his account, as the case may be. Both parties must have account in Janata Bank
Limited, as money is transferred.

41
Issue of Telegraphic Transfer (TT):

Application From fill-up.

Cash deposit.
Issue a cash Memo.
TT issue registers.
Calculated test number.
Prepared test of Telegram and confirmation and signed on it.
Telegram and confirmation sent.
TT advice preparation.
TT advice number inserted in voucher.
Signatures on TT advice.
Payment of Telegraphic Transfer( TT):

Telegram decoded.
Test number agreed.
Voucher preparation with party copy.
TT advice preparation(2)
Confirmation sent.
Posting.
Party copy sent to payee.
Message filled.

42
Payment Order (PO)

The PO is used for making a remittance to the local creditors. The procedures for selling a PO
are as follows:

Deposit money by the customer along with application form.

Give necessary entry in the Bills Payable register where Payee‟ name, address, date, PO
no: amount is mentioned.
Prepared the instrument.
After scrutinized and approved the instrument by authority, it is delivered to customer.
Signature of customer is taken on the counterpart and register customer‟s signature part.

3.13.: Dispatch Section

Those documents that are enter in the branch or exit of the branch must go through this section.

The main objective of this section is;

Keeping record of the documents send to other branches or bank.

Letters are sending to their respective destination.

Send these documents safely and correctly.

Receives documents come through different medium, such as postal service, courier
service, via messenger etc.

Outward mail or inward mail registers .

General scrutiny.

43
 Peon book.

Dispatch register for ordinary.

Various postal charges, Different countries and charges.

Postal file, use of postal stamps and control.

Franking machines.

Vouchers.

Outward telegram.

Various telegram charges.

Payment of charges to the debit of deposit account vouchers.

Balancing and adjustment of suspense against postage.

3.14.: Information related to a Bank Account:

An account

Opening of an account binds the Customer and Banker into a contractual relationship. It is the
most important and preliminary work for a bank. Account Opening is very important task for any
kind of banking activities. Customer relationship establishes through opening an account.
Generally, who are receiving bank service the bank may call them as a customer. However, bank
considers them as customers who have an account with them.

44
Procedure of Opening of an Account:

. Following are the formalities a customer must maintain in case of opening of an account:

Minimum age of 18 years

Application in the prescribed form
Furnishing Photographs of the applicant and attested by the introducer (2 copies)
Introduction by an account holder
Recording of specimen signature in the specimen signature card
Mention nominee in the prescribed form
Furnishing Photograph of the nominee (1 copies)

Before opening of current or savings account, the following formalities must be completed

Application on the prescribed from;

The customer information is filled up with the form;

Introduction:

The following persons can introduce an a/c opener:

An existing current/savings account holder of that branch;

An officer of that branch (not below the rank of an Assistant Officer.);

A respectable person of the society or locality who is well known to the Manager/2nd
man of the branch concerned.

45
Furnishing photographs;

Banker will supply a set of printed forms required for opening the account, which will
normally include:

Specimen Signature Cards (SSC);

Deposit Slip Book;

Check Book Requisition Slip;

Customer should carefully read and full-fill the application form;

Putting specimen signatures in the specimen card;

Any special instruments with regard to operation of the account should be noted on the
relevant signature card boldly duly authenticated by a/c holder should be obtained;

The required Account Number for the new Account from the Account opening Register
should be obtained;

Obtain the signature and a/c number of the Introducer on the advice of new accountant the
placement for the purpose and gets the signature properly verified by an Authorized
official of the bank

The deposit slip properly filled in and signed by the customer;

Then the new a/c number should be written at the appropriate place of the Deposit slip and
mark new Account on both the copies of the deposit slip and request the customer to
deposit the money at the cash counter;

Place the signature cards, Advice of new account, a copy of Deposit slip, photographs and
other necessary papers/documents etc. in a file;

46
 Obtain approval of the Authorized officer for opening the new account on all relevant
papers while giving approval for opening an account the Authorized official should be
satisfied about the of the Introducer;

The Authorized officer on the advice of new a/c and on the specimen signature card
should also attest the signature of the new a/c holder;

After approval of the opening of the a/c, get the cheque book requisition slip signed by the
customer.

Deliver the cheque book to the customer after properly marking the account number, name
and place of the branch on each leaf of the cheque book;

On completion of account opening a file for the new a/c holder and file all relevant papers
forms etc. Signature cards, copies of Advice, Deposit slip, Debit etc. is distributed to
concerned departments

Classification of Customers

Individual (Personal)

Proprietorship (Sole traders)

Partnership (Registered or Unregistered)

Limited Company (Public/Private)

Educational Institution, Club, Society, Association etc.

Trust

Executors

N.G.O

47
Application from for current/savings account:

Following are the contents of application from for opening savings/current A/C

Name of the Applicant

Father‟s name/Husband‟s name

Mother‟s name

Date of Birth

Present Address

Occupation

Nationality

Phone No.

Special instruction for operation of the account

Nominee

Specimen Signature

Introducer name

Introducer‟s signature

Amount deposited

48
Additional documents are to be obtained for opening some accounts:

1. Proprietorship Firm:

Name of authorized persons, designation, and specimen signature card.

Trade license.

Tax Receipt (For export/import)

Declaration of Proprietorship

Mandate if operation by third party is to be allowed.

2. Partnership Firm:

Account must be opened in the name of the firm.

The firm should describe the names and addresses of all partners.

Partnership deed is required which duly attested by Notary Public.

Trade license from City Corporation is needed.

Tax receipt (for import/export)

Photocopy of Registration Certificate duly attested by Notary Public in case of a

registered firm.

Letter of Partnership duly signed by all the partners, in case of non- registered firm.

Resolution signed by all the partners to open the a/c.

Mandate as to operation of the a/c.

49
3. Clubs/Societies/ Trustee/Associations/Non-trading Institutions etc:

Certified copy of Resolution for opening and operation of account.

Up to date list of office bearers.

Certified copy of Bye-laws and Regulations/Constitution.

Copy of Government approval (if registered).

In case of death, a/c, should be stopped until the club nominates another person.

Trust deed is needed-for trustee.

4. Joint Accounts of two or more persons

Mandate for Operation of Accounts

A clear authority signed by all the joint A/C holders containing instructions as to who will
operate the account and how the account is to be operated should be obtained. The mandate
should mention the name of the persons authorized to draw check. In case of
death/insanity/insolvency of one or more of the joint a/c holders, the authority will cease to
operate.

Executor:

Probate: From a court of law along with a certified copy of the will duly attested by a
notary public.

A mandate in case if there is more than one Executor, signed by all the executors, as to
how the a/c will be operated.

50
Administrator:

Letter of Administration from a court of law along with a certified copy duly attested by a
Notary Public appointing him as an Administrator of the Estate of the deceased. The
operation of the a/c is to be allowed as per instructions of the letter of administration.

5. Private Limited Joint Stock Company

Memorandum of Association and Articles of Association duly certified by Chairman of

Secretary.

Resolution of the Board duly certified by chairman/secretary authorizing to open the a/c
with the Bank and naming the persons who will operate the a/c, as per provisions of
Articles of Association.

Corporate Agreement Form.

Certificate of Incorporation duly certified by Chairman/Secretary.

List of Directors duly certified by Chairman/Secretary.

51
6. Public Limited Joint Stock Company

Memorandum and Article of Association duly certified by Chairman/Secretary.

Certificate of Incorporation duly certified by Chairman/Secretary.

Resolution of the Board duly certified by Chairman/Secretary authorizing to open the a/c
with the Bank and naming the persons who will operate the a/c as per provisions of
Articles of Association.

Corporate Agreement Form

Certificate of commencement of business.

List of Directors duly certified by Chairman/Secretary.

7. Co-operative Society/Societies Limited

Copy of Byelaw duly certified by the Co-operative officer.

Up to date list of office bearers.

Resolution of Executive Committee as regards of the account.

Certified copy of Certificate of registration issued by Registrar, Co-operative Societies.

8. Trustee Board

Prior approval of Head office of the Bank.

Certified copy of Deed of trust, up to date list of members of the trustee Board and
certified copy of the Resolution of trustee Board to open and operate the account.

52
9. NGO

The account opening procedure is same but in exception is that the Registration
Certificate from the Social Welfare Department of Government must be enclosed with
the application.

10. Minor's Account:

Following documents have to be obtained in case of the account of minor :

Putting the word "MINOR" after the title of the account.

Recording of the special instruction of operation of the account.
The AOF is to be filled in and signed by either the parents or the legal guardian appointed
by the court of law and not by the minor
Issuing Cheque Book to the Customers

Issue of fresh cheque book

Fresh cheque book is issued to the account holder only against requisition on the prescribed
requisition slip attached with the cheque book issued earlier, after proper verification of the
signature of the account holder personally or to his duly authorized representative against proper
acknowledgment

Procedure of issuance of a fresh cheque:

The account opening from is sent for issuance of a cheque book.

Respected officer first draws a cheque book
Officer than scaled it with branch name.
In-Charge officer enters the number of the cheque book in cheque issue register.
Officer also enters the customer‟s name and the account number in the same register.
53
 Account number is then writes down on the face of the cheque book and on every leaf of
the cheque book including requisition slip.
There is a special technique to sign every leaf of the cheque book with the help of carbon
paper. So officer‟s signature prints the reverse side of the leaf.
The name of the customer is also written down on the face of the cheque book and
on the requisition slip.
The word “Issued on” along with the date of issuance is written down on the requisition.
Number of cheque book and date of issuance is also written on the application from.
Next, the customer is asked to sign in the cheque book issue register.
Then the respected officer signs on the face of the requisition slip put his initial in the
register and hand over the cheque to the customer.

Issue of New Cheque Book (For old Account)

All the procedure for issuing a new cheque book for old account is same as the procedure of new
account. Only difference is those customers have to submit the requisition slip of the old cheque
book with date, signature and his/her address. Computer posting is than give to the requisition
slip to know the position of account and to how many leaf/leaves still not used. The number of
new cheque book is entered on the back of the old requisition slip and is signed by the officer.

Procedure of issuance of a new cheque book:

If the cheque is handed over to any other person then the account holder the bank
addressing the account holder with details of cheque book issues an acknowledgement
slip. This acknowledgement slip must be signed by the account holder and returned to the
bank. Otherwise the bank will not honor any cheque from this cheque book.
At the end of the day all the requisition slips and application forms are sent to the
computer section to give entry to these new cheque.

Then cutting the cheque book issuing) charge.

54
Definition of a Cheque:

A Cheque is defined in section 6 of the N.I Act, 1881, as “ A cheque is a bill of exchange drawn
on a specified banker and not expressed to be payable otherwise than on demend.”

Requisites of a valid cheque:

The cheque is required to be in writing either hand or type-writer with non-erasable ink.

The order to pay money must be unconditional. It means payment of money should be
made as per N I Acts and it should not be department on other events.

A cheque should contain an order to the banker to pay a sum of money.

It must bear the signature of the drawer.

It must be payable on demand on local currency.

Parties to a cheque:

Drawer: The maker of a cheque is called drawee of a cheque.

Drawee: The bank/ branch is directed to pay is called drawee of a cheque.

Payee: The person named in the instrument to whom or to whose order the money is by
the instrument directed to be paid is called the payee.

Materials parts of a cheque:

Date.

Amount.

Payee.

Place.

55
Transfer of an Account:

The account submits an application mentioning the name of the branch to which he wants
the account to be transferred.

His signature cards, advice of new account and all relevant documents are sent to that
branch through registered post.

The balance standing at credit in customer‟s account is sent to the other branch through
Inter Branch Credit Advice (IBCA)

No exchange should be charged on such transfer.

Attention is also given in this connection.

Closing the Account

Upon the request of a customer, an account can be closed. After receiving an application from
the customer to close an account, the following procedure is followed by a banker. The customer
should be asked to draw the final cheque for the amount standing to the credit of his a/c less the
amount of closing and other incidental charges and surrender the unused cheque leaves. The a/c
should be debited for the account closing charges etc. and an authorized officer of the bank
should destroy unused cheque leaves.

In case of joint a/c, the application for closing the should be signed by all the joint holders.

56
A banker can also close the account of his customer or stop the operation of the account under
following considerable circumstances:

Death of Customer.

Customer‟s insanity and insolvency.

Order of the court.

Specific charge for fraud forgery.

Stop Payment of Cheque:

A banker can stop payment of cheque of his customer under following considerable
circumstance:

Firstly the account holder will apply to stop the payment of his cheque

There is a register for this purpose. The authorized officer keeps it.

The officer will see the condition of account and verify everything.

In the ledger book, the officer will marked with red ink and the cheque will not be paid.

Dishonor of Cheque:

If the cheque is dishonored, JBL send a memorandum (cheque return memo) to the customer
stating the reason in the following way:

Payee‟s Endorsement required

Bank‟s Endorsement required
Bank‟s confirmation on Payee‟s Endorsement required
Drawer‟s Signature differs
Cheque Post Dated (b) State dated Cheque
57
 Amount in Words and figures differs
Alteration requires drawer‟s full signature
Cheque Mutilated
Payment stopped by the Drawer
Effects not cleared, may be presented again on
Insufficient Fund
Not Arranged for
Exceeds Arrangement
Crossed Cheque should be presented through Banker
Clearing House Stamp required
Refer to Drawer
Cheque to be signed in the presence of and attested by an officer of the Bank
Payee‟s Identification required
Bank‟s Discharge Irregular
Not drawn on us.
Details about current deposit(CD) and saving account(SB) Ledgers:

Control of deposit ledgers.

Indexing of accounts its purpose.
Opening of new accounts in ledger.
Scrutiny of AOF, pay in slip, authentication of cheque book serial and title of
account, writing special instruction.
Scrutiny of instruments cheque and voucher.
Posting of instructions cheque and vouchers.
Stamp, initials of ledger keeper.
Cancellation of entries.
Cheque book serial, title, instructions, date, narration, cheque number.
Debit, credit, balance, products etc.
Release of instrument up to serial limit.
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 CHAPTER- 4

JANATA BANK LIMITED DEPOSIT AND SCHEMES

4.1 Deposit Section

Deposit forms the life-blood of a commercial bank. Without deposits there is no business for the
commercial banks of any nature.

Bank is a financial institution. It receives money from the depositor, and lends it to the borrower.
Bank takes deposit from customers under a contract. According to the Lord Davey a customer is
a person who has some sort of account, either deposit or current or some similar with the banker.

Janata Bank Ltd. mobilizes deposit as a source of fund through the following accounts:

Current account.
Savings Deposit Account.
Short term deposit account.
Fixed deposit Account.

Current Account:

A current account is a running and active account, which may be operated upon any number of
times during a working day. The depositors can freely deposit/withdraw money as many times as
he feels necessary in each working day. The primary object of current account is to save
customers like businessmen, joint stock companies, public authorities etc. from the risk of
handling cash themselves. No interest is providing for the deposit in a current account.

59
Kinds of Current Deposit Accounts:

Accounts of individuals.
Joint Account.
Accounts of Proprietary Concerns.
Accounts of partnership concerns.
Accounts of private limited companies.
Accounts of public limited companies.
Accounts of government.
Trust Accounts.
Accounts of societies, Associations, Clubs, Religious institution.

Special Features Of Current Deposit Accounts:

Current Deposit Account shall be open with a minimum amount of Tk. 1000.
The customer has the right to draw Cheque Books for with-drawl money.
Banker is under an obligation to repayment on Demand without any notice.
The cheque may be drawn for payment to himself or to a third party.
The customer has the right to withdrawal money so long there is sufficient balance in his A/c.
There is no restriction on the amount or may be operated upon any number of times
during banking hour.
Interest on credit balance shall not be allowance.
Incidental charge shall be realized (having average balance below Tk.1000/- during last
6 months of each half yearly closing as per H O instruction from time to time of closing
down of an A/c)
Closing charge realized at the time of closing down of an A/c.
Current account holder are entitled to make use of most services of the bank.
A current A/c holder customer may be granted to offer loan on the basis of his transaction
of A/c.
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 Customers are relieved of the task of handling cash themselves to take the risk inherent
therein.
Payment of cheque /bill can be made by collection.
Transferable A/c (may transfer from one Br. to another Br.)
Bank supplies statements setting out the debit & credit entries of A/c.
Usually open for business purpose.
Photo & introduction requirement.
A current account holder customer can be introduced all types of A/c.
Nomination facility is available.
Customer can be authorized his agent to operate his A/c. by mandate.
Customer can give Standing Instruction to Banker to operate his A/c.
May open by individually or by jointly or the name of partnership Firm , Company.
Association or club may be opened in the name of minors & give a valid discharge in
respect of CD A/c.

Savings Deposit Account:

Savings Bank Account is suitable for savers who want to save for meeting future needs. This
deposit account for people who do not want to withdraw frequently or who do not want to keep
money for fixed long period. It is a midway between current account and fixed deposits. Savings
bank account holder may deposit money as and when he feels necessary

Short Term Deposit Account:

There are people and organizations who want to keep funds in the bank so that it can be
withdrawal without any restrictions. They also want to earn some interest. For neither current
account is suitable, nor savings bank account is suitable. These types of people and organizations
keep their funds in the bank, which is with drawable by a written notice for a specified period.
These deposits are called Short Term Deposit Account

61
Special Features of Short Term Deposit Accounts:

Deposit is received for a short period.

A notice is needed for withdrawal.
It is interest-bearing account, which is determined by The Head Office.
Interest is paid half-yearly which is calculated by simple interest rate.
Who can open a Short Term Deposit A/c.:

A person.
Public corporation
Non-Govt. organization.
Autonomous organization.

Procedure of opening Short Term Deposit A/c.:

According to Current Account.

A/c opening form & Specimen signature card of current account is used
“Short Term Deposit” will be written on A/c opening form & specimen signature card.
The A/c holder has to ensure that he or she will not withdraw deposited money within
particular days (7 days).
An introduction of A/c holder will be taken.
Signature of introducer put on photos & A/c opening form will be verified by responsible
officer.
Signature of account holder written down on A/c opening form & Specimen signature
card will be admitted by officer.
Allot an A/c number through entering in the A/c Opening Register.

62
Fixed Deposit Account:

Fixed deposits are moneys deposited by the customer for a fixed period, which ranges currently
from three months to three years and over. For different duration interest paid is different. As the
duration increase rate of interest also increase. Highest interest is paid to the fixed deposit of
three years duration. For deposits of more than three years, interest rate applicable is the interest
rate applicable to deposits of three years duration. Fixed deposit bear higher interest compared to
other deposit as these accounts are less liquid in nature.

Characteristic Feature:-

Amount of Taka is fixed.

Time fixed.
Rate of interest fixed.
Photo & introduction not required. (But illiterate person provide with photograph)
Single transaction A/c
Security A/c.
Nominee facility
Renewal facility.
Interest may pay without encashment of FDR.
One person can open more than one A/c.
May be opened in the name of minors & give a valid discharge.
May be opened jointly.
Security against loan.
Not transferable.
Payment may be cash or collection.
Not negotiable.
Not issued any cheque book for with drawl but place receipt with adequet revenue.
Not realize any closing charge.
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4.2.: Deposit Scheme

Janata Bank limited as third generation modern and technology based modern commercial bank
offers various types of customer‟s friendly deposit schemes to its valued customers. These
schemes are highly profit earning to the depositors and unique in security. The schemes are
outlined below

SCHEMES

Janata Bank Medical Deposit Education

Deposit Scheme Scheme Deposit Scheme
A. Janata Bank Deposit Scheme (JBDS):

Serial Amount Of Total Amount Of Amount Of Principal

Installment Amount Paid Interest Bonus +Interest
No.
Tk. Tk. Tk. Tk. +Bonus

Tk.

1 500 60,000 33,190 1,500 94,609

2 1,000 1,20,000 66,218 2,000 1,88,218

3 2,000 2,40,000 1,32,435 3,000 3,75,435

4 5,000 6,00,000 3,31,088 6,000 93,70,88

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 5 10,000 12,00,000 6,62,176 11,000 18,73,176

6 20,000 24,00,000 13,24,350 21,000 37,45,352

Source: Annual report of Janata Bank Limited- 2019

B. Medical Deposit Scheme (MDS):

Amount Bonus Principal Amount Bonus Principal

Paid +Interest Paid +Interest
Paid Paid
Tk. +Bonus Tk. +Bonus Tk.
Tk. Tk.
Tk.

500 1,500 38,225 6,000 7,000 4,47,700

1,000 2,000 75,450 7,000 8,000 5,22,149

2,000 3,000 1,49,900 8,000 9,000 5,96,599

3,000 4,000 2,24,350 9,000 10,000 6,71,049

4,000 5,000 2,98,779 10,000 11,000 74,54,498

5,000 6,000 3,73,249

Source: Annual report of Janata Bank Limited- 2019

C. Education Deposit Scheme (EDS): JBL introduces education deposit scheme for 4, 6, 8, 10
years.

65
Terms & Conditions Of Deposit Schemes:

A/c holder will be the age of 18 and sound mind.

A minor cannot open this A/c.
This A/c cannot be opened jointly.
This type of A/c can be transferred from one branch to another branch through Tk. 500/-
transfer fee.
One can deposit installment in advance but no interest is paid on advanced installment.
Interest will be payable at the rate of 8.50% in compound rate.
No cheque book will be issued against this A/c.
Amount of installment cannot be changed.
Tax deductible under the Govt. rules & regulations.
After the death of A/c holder A/c will be closed.
If advances will be given against any A/c and the A/c holder died without paying loans
then firstly the total loan amount will be deducted from that A/c and the remaining
amount will be given to the nominee.

4.3 Consumer Credit Scheme

JBL Consumer Credit Scheme gives clients a great opportunity to buy household and
office items on easy installments. This scheme gives clients the advantage of part
payment to cope with the high price tags of many necessary home and office appliances.
Television, Refrigerator, VCR, Personal Computer, Photocopier, Washing Machine,
Furniture, Microwave Oven, Car, and a number of other expensive items are now within
their buying range.

66
4.4 Monthly Savings Scheme

This scheme is specially designed for the benefit of the limited income group members.
This helps to accumulate small monthly savings into a significant sum at the end of the
term. So, after the expiry of the term period the depositor will have a substantial amount
to appreciate on.
A monthly deposit of Tk.500/- or Tk.1000/- for 5 or 8 years period earns in the end.
Tk37, 896 /- or Tk.75, 791/- respectively

4.5 Saving Insurance Scheme

This scheme is the first of its kind in Bangladesh. It combines the benefits of regular
savings and insurance scheme; so, you get the usual rate of interest on the deposited
amount while you enjoy the protection of a comprehensive insurance coverage. Under
this scheme, the beneficiary get equal the deposit in case of natural death of the account
holder whereas in the event of accidental death of the account holder the beneficiary will
receive twice the deposit.

4.6.:Calculation, application, and payment of interest in different deposit accounts:

Savings Deposit A/c:

1. Procedure of calculation (Inst. Cir. No.-2618)

Minimum balance of the month.

Maximum two times withdrawal in a week (Sat-.Thurs).
Maximum Tk.20, 000/-or 25 % of deposit can be withdrawal in a week.
7 days notice is required to withdraw above Tk.20000/- or 25 % in a week.
If taka withdrawn above twice, Tk.20, 000/-or 25 % of deposit without notice in a week,
no interest is paid for the month.
67
 If Tk. 20, 000/- or 25 % in a week at a stretch, incidental to be charged.
If taka is not withdrawn according to the given notice or the notice is not rejected in
writing by the A/c holder, no interest is paid for the amount mentioned in the notice.
Interest accrued below Tk.5/- is not applied.
Interest and product have to write in the product sheet.
10 % source tax has to deduct from the interest and the amount of deduction has to write
in the product sheet.
Net amount of interest is then calculated.
Total amount of interest ledger wise also has to calculate.
Formula of interest calculation = (Rate of Intt. * Product)/(12*100)

2. Application of interest:

Checking of product sheet by officer.

Balancing before Intt. posting.
Date of Intt. posting, according to closing circular.
Intt. poted in the ledger from product sheet.
Voucher passing:

 Expenditure A/c ………………………Dr.

 Intt. on savings deposit A/c…………..Cr.
 Sundry deposit A/c(source tax)………Cr.
After Intt. Balancing.
Checking of ledger.

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Short Term Deposit A/c:

1. Procedure of calculation (Inst. Cir. No.-3480)

2. Application of interest:

Like SB Deposit.

DPS & JBSPS:

1. Calculation:

Intt. is paid yea4rly basis & product is calculated monthly basis.

Tk. Deposited within 8th of the month i.e., balance of 8th , is taken as the product of the
month.
Calculation of Intt.: Like SB deposit.

2.Application : Like SB Deposit.

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 3.Payment:
If the committed A/o accrued in the ledger after 5,10 or 20 yrs.
 Dr.: A/c (DPS)
 Cr: A/c (Deposit)/PS
If excess in the A/c.,
 Dr.: DPS A/c.
 Cr.: A/c (Deposit)/PS.
 Cr.: Intt. on DPS.
If less in the A/c.-Have to check out the lapses and find out the balance.

Dr.: Where the balance (less A/o)

Cr.: DPS A/c.

Dr.: DPS A/c

Cr.: A/c (Deposit)/PS

Fixed Deposit A/c.:

After maturity.
Before maturity.
Calculation of Intt.-Interest =Rate * Balance * Days(in case of qrt.intt. must not exceed
90 days.) (Inst. Cir. No. 3375)

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 CHAPTER-FIVE

My Duties and Responsibilities

5.1 Position and Duties

5.1 Position and Duties:

Internship Position and Duties:

Position Designation Role

Accounts opening section Branch Manager

Loan and advance section Observers and Branch Manager

Accounts Opening Section:

I was assigned for the first time after getting the order of internship program and I was worked
there 20 days approximately.

Loan and Advance Section:

Rest of my internship period I used to stay in this section to observe certain types of activities.

71
 CHAPTER - 6

Analysis Findings and Recommendation

6.1 SWOT Analysis
SWOT is an important matter to know the present condition of strengths, weaknesses,
Opportunities and threats of JB. This analysis also helps to better decide the company
Management to take relevant measure to make up its weakness and face the competitors.
The term SWOT includes the following:
S=Strength
W=Weakness
O=Opportunity
T=Threat
Strength
Network Largest network among public commercial banks.

Fund and liquidity Strong liquidity and Strong fund sources.

Strong corporate Identity JB is the leading provider of financial services

nationwide. With its strong corporate image and
identity it can better position in the minds of
customers. This image has helped JB grab the
personal banking sector of Bangladesh very rapidly.
Strong employee bonding JB employees are one of the major assets of the
and belongingness
company.The employees of JB have a strong sense
of commitment towards organization and also feel
proud and a sense of belonging towards JB. The
strong culture of JB is the main
reason behind this strength.

Young Enthusiastic The selection and recruitment of JB emphasizes on

workforce
having the skilled graduates and postgraduates who

72
 have little or no previous work experience. The logic
behind is that JB wants. to avoid the problem of
‘garbage in and garbage out’. This type of young &
fresh workforces stimulates the whole working
environment of JB.
Empowered Work force The human resource of JB is extremely well thought
and perfectly managed. As from the very first, the
top management believed in empowered
employees, where they refused to put their finger in
every part of the pie. This empowered environment
makes JB a better place for the employees. The
employees are not suffocated with authority but are
able to grow as the organization matures.
Companionable All office walls in JB are only shoulder high
Environment
partitions and there is no executive dining room.
Any of the executives is likely to put down at a table
in its cafeteria and join in a lunch chat with whoever
is there. One of the employees has said “It’s
exciting to know you may see and talk to the top
management at any time. You feel a part of things”.
Management By JB also has Management by Objectives (MBO)
Objectives(MBO)
everywhere. Each person has multiple objectives.
All the employees must have to get the approval of
their bosses on what they are going to do. Later
they review as how well they have performed their
job with their management as well as the
peer group.

73
Weaknesses

Absence of strong JB currently don’t have any strong marketing

Marketing activities
activities through mass media e.g. Television.
TV ads play a vital role in awareness building.
JB has no such TV ads campaign.
Lack of customer AS JB is fairly new to the banking industry of
confidence
Bangladesh average customers lack the
confidence in JB and judge the bank
as an average new bank.

Lack of involvement Security market. Lack of involvement Security market.

Opportunities:
Sponsorship JB is now involved in active participant of
many national and international events, sports
etc. This will help them to enhance
brand image.

Public Image Since JB is the oldest and public commercial

bank public have greater confidence in it.
The use of IT JB is widely taking the help if Information
technology to better serve their clients and It
is also spreading nationwide.
High demand of JB gives loan in low-cost housing and real
spectral loans
estate management, and financing projects in
agriculture, transport, education, sports and
health sectors. JB personal banking division
can focus on this category of products and
grab these segments of customers.

74
Distinct and quick JB is noted for its distinct and quick operating
operating procedures
procedures specially in general banking
activities. Clients are not likely wait to get
services.
Countrywide network The ultimate goal of JB is to expand its
operations to whole Bangladesh. Nurturing
this type of vision and mission and to act as
required, will not only increase JB’s
profitability but also will secure its existence in
the long run.
More experienced and The top management team of JB is expert
managerial know-how
and more experienced in banking activities.
The operating policies established by them
are unique & unified. All the members of the
team carry out their management roles
exhaustively. They equally contributed
to JB’s superior leadership, by carrying out
their unique roles. They worked well together,
respecting each other’s abilities, and arguing
openly and without any animosity when they
disagree.

75
Threats:

Mandatory Provision To take mandatory provision against loan

followed by Bangladesh Bank
Difficult to collect Govt. Increase competition to collect government
deposit
deposit with other private and public
commercial bank.
Upcoming Banks The upcoming private local and multinational
banks pose a serious threat to the existing
banking networks of JB. It is expected that
within one year 6 new commercial banks are
waiting to enter into market. If that happens
the intensity of competition will rise further
and banks will have to develop strategies to
compete against and win the battle of banks.
Moderate levels of JB should continuously improve its customer
Customer Satisfaction
service strategies and the overall service
quality needs to win the customer satisfaction
undoubtedly.

76
6.2 Findings
This report has observed various positive as well as some negative aspects of the Chourhash
Branch (Janata Bank Ltd).The findings are described below:
 It is a brand to all types of customers.
Chourhash Branch has some active and well-organized human resources who maintain the
daily activities more smoothly.
Sponsorship and public relation specially in mass media can obviously increase the
brand image and brand equity of a bank
The general banking department now performs relatively better than previous
 It has a lot of clients and they are very faithful to the Chourhash Branch.
This Bank is now technologically updated.
There are improving online banking facilities, they have ATM services, Debit card
and Credit card system day by day.
Some customers do not understand account opening, closing and cash deposit.
Some customers are not interested or not able to write D.D., Check, pay order voucher.
 In the present market situation, where the competitions among all public and private
commercial banks are very intense and high, the management of JB is failing to find out
its major weaknesses.
The major weakness of JB is its unattractive salary package. The salary package that JB offers
to the employees is relatively poor comparing to other competing banks in the market.
According to some clients opinion introducer is one of the problems to open an
account. If a person who is new of the city wants to open account, it is a problem for
him/her to arrange an introducer of accounts holder.
Chourhash Branch is congested branch where modern technical equipment such as computer
and manpower are not sufficient. As a result banking activities are not done properly.
JB has limited workforce. As a result most of the employees are under huge workload
and have to work extra hours though no overtime facility is provided to them. So the
cause of serious employees dissatisfaction and result in employee turnover.
They have no proper management services for the customer directly.
77
6.3 Recommendations

On the basis of the findings the following recommendations are suggested for the Janata Bank
Ltd.

 If the entire general Banking system is fully computerized then they satisfy the
customer by provide fast service.
 If they establish networking system with their branches then it can easily transfer data
within short time.
 If they cancel the introducer system then they can collect more deposit through new
account and it also satisfied the customer.
The Bank has not enough management services for the customer. So, the bank should
improve their management services for the clients directly.
Janata Bank at Saver Branch has not much office space for performing banking activities and
relaxation of the customer. So, the bank should enhance their office space very well.
 It is recommended to introduce more ATM booth instead of manual banking system. It will
save huge amount establishment and other costs.
To try to understand those carefully who do not know how to open a bank account.
To make the process easy and quick the whole system should be computerized and
take modern communication media for example e-mail, fax, Internet should be used.
A group well-trained and expert work force is dedicated to render the best service tthe
customers.
The management has to introduce the overtime facility for the employees who work
hard extra hours after their office time.
The management of JB should try to minimize the expectation gap what the management
perceive about the customers and what the customers actually expect from the bank
The management of JB must identify the weak points to meet the competition in
banking sector.

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6.4 Conclusion

Janata Bank Ltd. is such a commercial bank which is rendering all commercial banking services
to the customers. In addition to that they make available micro credit and SME finance to the
millions of needy people of the country. As part of a Corporate Social Responsibility (CSR), it is
playing a remarkable role to help the distressed people of the society in different welfare related
activities. They focus on dignified, prompt and personalized services being rendered to their
customers. They believe in developing strong interpersonal relationship with each stakeholder.
As such, they are morally bound to provide high quality banking services with the latest
technology to obtain optimum return on shareholder's equity ensuring safety of depositor's
money and making all efforts to introduce their innovative Islamic banking products and services
to their existing and prospective customers. Besides they should try the best for improving their
general banking services mentioned. Then JB will be the leading commercial bank in
Bangladesh.

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