report on jumuna bank

Jamuna Bank Limitedyour partner for growth

Jamuna Bank Limited

Background of the studyObjectives of the StudyMethodology of the studyLimitations of the study

Jamuna Bank Limited

your partner for growth

Background of the study

The ending project of the BBA course is to prepare a dissertation or internship report. For

this purpose I choose Jamuna Bank LTD to make internship report.

Now the world became dynamic. Nobody in this competitive arena will be successful until

he is not linked with practical orientation. So in this regard internship program provides a

good hope to connect the theoretical knowledge with practical knowledge.

Banks are the major financial institutions which intermediate between actual lenders and

actual borrowers. For this intermediation, banks are to play actual lenders and charge actual

borrowers.

Banks are playing a vital role in the economic progress of our country. Now-a-days, the

banks try to give priority in the perspective of our national interest.

Every care has been taken to produce the report with minimal errors through could not get

rid of some.

Jamuna Bank Limited 1

Jamuna Bank Limited


Objectives of the Study

The Broad objective:

To highlight on the profile of Jamuna Bank LTD of Bangladesh LTD.

To examine the general banking Functions.

To recommended some corrective measures to resolve the problem.

To gather practical experience and Knowledge.

The specific objective:

To fulfill the partial requirement of the course outline of banking.

To study various objectives and principles of JBL.

To know about organizational framework of JBL.

To observe the functions of general banking system.

To study the existing overall banker customer relationship.

To acquaint with the services and facilities rendered by JBL.

To know about the foreign exchange operation practicing at the JBL.

To find out the problems and prospectus in this section.


Jamuna Bank Limited


METHODOLOGY OF THE STUDY

This report has been prepared on the basis of the experience gained during the period of internship. Data has been collected from primary as well as secondary sources but emphasis has been made more on primary sources. Findings are based on practical work and methods are as follows:

Data sources:The data source used to prepare this report delineated as follows:

a). Primary sources- i). Personal interview.

ii). Depth interview

iii).Observation in the organization.

iv). Practical desk task.

b).Secondary sources - i). Annual report of JBL.

ii).Banks financial statement.

iii).Marketing research book.

iv).Periodicals.

v). Bulletins.

vi).Circular.

vii).Monthly transaction record of the bank.


Jamuna Bank Limited


The collected date and information have been tabulated, processed. Analyzed and graphically presented in order to make the study more informative, useful and purposeful.

LIMITATIONS OF THE STUDY

Despite the diligent efforts that have been put behind the preparation of this report, I have

only succeeded to skin the surface of the ocean of the subject. Therefore, the views

expressed in this report are likely to be limited by our lack of deeper understanding. A

wholehearted effort was applied to conduct the internship program and to bring a reliable

and fruitful result. In spite of having the wholehearted efforts some limitations which acted

as a barrier to conduct the program. The limitations were:

Problems of data collection

JBL, Khatungonj branch, started his activities in December 2003. So there were

shortages of sufficient data for comparing.

Problems of time constraint

The duration of my Internship program was three months. This time was .not enough

for me to understand the overall banking activities.

Problems of Banks, confidentiality

Some time bankers are not interested to serve the necessary data to the internee. The

bank confidentially keeps the data.

Problems of non-explaining activities

Some time I was assigned to do some jobs without explaining why this work is to be

done. This situation has been created a lot of problems to understand why a specific

function is being performed.

Problems of depth of knowledge

During internship period there are some lacks of depth of analytical banking

knowledge. In other hand there are some lacks of analytical ability for writing such

kind of report.


Jamuna Bank Limited


A BRIEF OVERVIEW OF

JAMUNA BANK


Introduction

Objectives & strategies of JBL

Mission &vision of JBL

Themes for growth & future trust

Performance of the JBL

Corporate culture

Organogram of JBL

Mission

Jamuna Bank Limited


INTRODUCTION

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

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

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005. Currently the Bank has 29 (twenty three) branches 13 in Dhaka, 1 in Gazipur, 5 in Chittagong , 3 in Sylhet 1 in Bogra, 2 in Naogaon, 1 in Munshigang and 1 in Narayanganj and 2 in Rajshahi. Six branches will be opened at commercially important places during the year 2008.

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

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

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

Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. The Bank undertakes all types of banking transaction to support the development of trade and commerce of the country.


Jamuna Bank Limited


OBJECTIVES

To earn and maintain CAMEL Rating 'Strong'

To establish relationship banking and improve service quality through development

of Strategic Marketing Plans.

To remain one of the best banks in Bangladesh in terms of profitability and assets

quality.

To introduce fully automated systems through integration of information

technology.

To ensure an adequate rate of return on investment

To keep risk position at an acceptable range (including any off balance sheet risk)

To maintain adequate liquidity to meet maturing obligations and commitments.

To maintain a healthy growth of business with desired image.

To maintain adequate control systems and transparency in procedures.

To develop and retain a quality work-force through an effective human Resources

Management System.

To ensure optimum utilization of all available resources

To pursue an effective system of management by ensuring compliance to ethical

norms, transparency and accountability at all levels


Jamuna Bank Limited


STRATEGIES

To raise capital up to TK. 1000.00 million by March 2006.

To manage and operate the Bank in the most efficient manner to enhance

financial performance and to control cost of fund

To strive for customer satisfaction through quality control and delivery of

timely services

To identify customers' credit and other banking needs and monitor their

perception towards our performance in meeting those requirements.

To review and update policies, procedures and practices to enhance the

ability to extend better service to customers.

To train and develop all employees and provide them adequate resources

so that customers' needs can be reasonably addressed.

To promote organizational effectiveness by openly communicating

company plans, policies, practices and procedures to employees in a timely fashion

To cultivate a working environment that fosters positive motivation for

improved performance

To diversify portfolio both in the retail and wholesale market.

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

relationship between the bank and its customers.


Jamuna Bank Limited


MISSION

The bank is committed to satisfying diverse needs of its customers through an array of

products at a competitive price by using appropriate technology and providing timely service

so that a sustainable growth, reasonable return and contribution to the development of the

country can be ensured with a motivated and professional work-force.

VISION

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

country.

THREE THEMES FOR GROWTH

Introducing card network and electronic Banking.

Expanding personalized services.

Building strong presence in the market with reputation.

FUTURE TRUST

Full online banking.

Dealing room service for corporate customers and high net worth individuals.

Introducing more innovative products and service.

Opening new branches including Islamic Banking branches.

Expansion of business network at home abroad.


Jamuna Bank Limited


Performance of the Bank

Profit and Operating Result: The Bank earned net profit before tax of TK. 128.26 million during the period June 2006 after all provisions including 1% General provision on unclassified Loans & Advances. Provision for Income tax for the year is amounted to TK. 54.15 million resulting a net profit after tax of TK. 74.10 million.

Deposit: A strong deposit base is necessary for the success of a bank. It is termed as the life- blood of a commercial bank. As at June, 2006 Jamuna Bank able to mobilize a total deposit of TYK. 10,393.19 million. The deposit of the bank in 2005 was 10,264.52 million.

Loans & Advances: Jamuna was able to make a substantial amount of quality leading up to May 2005 with 0.07% of classification. The Bank’s total credit portfolio stood at TK. 8294.00 million as at 31st June 2006 which was TK. 6722.80 million as on 31st

December 2005. The Bank financed a number of projects and Industries. The Bank has also financed industrial projects under syndication with other Banks.

Foreign Exchange Business: International Trade constitutes the main stream of business activities of Jamuna Bank. It offers a full range of trade finance and service namely, issue, Advise and confirmation of Documentary credit, arrange forward exchange coverage, pre-shipment and post-shipment finance; Negotiation and purchase of Export bills, Discounting bill of exchange; collection of bills; inward and outward remittance etc.

o Import Business: The total Import Business handled by the bank during the period June 2006 was TK. 5269.29 million compared to TK. 7923.90 million in the year 2005.

o Export Business: The total Export Business handled by the Bank during the period June 2006 was TK. 1739.97 million compared to TK. 4790.80 million in the previous year.

Investment: The total investment of the Bank stood as at TK. 1,607.55 million as on 31-05-2005 as against TK. 1,163.70 million in the year 2006 showing an increase of 91.24%. The notable investment representing development in Treasury bills, shares, prize Bond and Others.


Jamuna Bank Limited


Capital and Reserve Fund: The Authorized Capital of the Bank is TK. 1600 million. Total Share holders Equity at the end of June, 2006 stood at TK. 681.43 million. The paid up Capital representing the face value of 42,90,000 ordinary shares of TK. 100/- each fully paid by the sponsor shareholders. Subsequently, the paid up capital increased from TK. 390.00 million to TK. 429.00 million by the end of December 31, 2005 by issuance of Bonus share of 10.00%. At the close of business on June31, 2006, the capital adequacy ratio was 12.14% as against accepted standard ratio of 9%.

JBL corporate Culture

Employees of JBL share certain common values, which help create a JBL culture:

The client comes first.

Search for professional excellence.

Openness to new ideas and new methods to encourage creativity.

Quick decision making.

Flexibility and prompt response.

A sense of professional ethics.

Business Operation

Main products or services contributution to revenues: Revenue incomes during the

past years are as follows:

Description 31/12/2006 31/12/2005 31/12/2004 31/12/2003

Interest Income 652657558 1163089970 738496818 344892685

Income from Investment 53763373 80439298 27373544 15478065

Commission, Exchange

and Brokerage Income

77686907 133703617 71204997 25948013

Other Operating Income 7189160 20036441 9659631 4877928

Total Income 791296998 1397269326 846734990 391196691


Jamuna Bank Limited


Special Products & Services : The Bank has an array of tailor made financial

products and services. Such products are Monthly Saving Scheme, Monthly profit

Scheme, Double Benefit Scheme, Consumer Credit Scheme, Lease Finance, Personal

Loan for Woman. Jamuna Bank LTD has already introduced “Q-Cash” ATM card for

its customers, giving them 24 hours banking services through Debit/Credit Cards.

Distribute of Products/Services : The products of the bank are distributed/ services

are rendered through network of branches and correspondent through out of the world.

Competitive condition in the Business: The banking sector comprises of monolith

public sector consisting of four major commercial Banks, two agricultural banks and

three DFI and a large number private commercial Banks including about a dozen

foreign owned private Banks. They severely compete for saving/Deposit and are in

search of sound investment/lending targets. Despite stiff competition, the private

sector banks earning have gone up significantly, especially for those having

professionally managed operations.

Employees Position(As on Designation):

Serial

NoDesignation Number of Employee

01 Managing Director 1

02 Deputy Managing Director 1

03 Executive Officer 120

04 Officer 398

05 Casual and Others(Peon, Tea boy & Driver) 80


Jamuna Bank Limited


Total Employees 600

ORGANOGRAM OF JBL (Sources: Company Profile)


Managing Director

Executive Vice President

Additional Managing Director

Senior Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

First Assistant Vice President

Provisionary Officer

First Executive Officer

Executive Officer

Senior Executive Officer

Junior Assistant Vice President

Officer

Jamuna Bank Limited


BRIEF OVERVIEW OF

KTG BRANCH


Jamuna Bank Limited


Introduction

Jamuna Bank Limited, Khatungonj Branch has started its activities from December 24, 2003.

This Branch earning almost Tk. 2 Million in each month. It has 18 employees. A first senior

Assistant Vice President is the manager & Branch in charge and the Second Manager is the

Junior vice President.

Jamuna Bank Limited, Khatungonj Branch has six divisions:

General Banking Division

Cash Division

Credit Division

Loans and Advance Division


Introduction

Modern Equipment Of The Bank

Organogram of Jamuna Bank(Khatunganj Branch)Products & services of JBL (Khatungonj Branch)

Mission

Jamuna Bank Limited


Accounts Division

Foreign Exchange Division

MODERN EQUIPMENT OF THE BANK

Computer: Now a days compute is essential all area of operations for keeping records

& retrieving this records. All printing works are done with the help of computer. It

reduces complex work at Khatungonj Branch has computer for every desk.

Money Counting Machine: This device is used for count money correctly and

accurately automatically.

Note Checking Machine; This machine is used for finding the fake note. It is

essential equipment for smooth banking activity.

Electronic Calculator: This device is used for proper counting.


Jamuna Bank Limited


SWIFT: This device is new for our country. It is largely used for the foreign exchange

activity. Any kind of massage can be sent accurately and within five minute. There is

no chance for missing the massage .so it is most secreting type of communication.

Organogram of Jamuna Bank (Khatunganj Branch)


Jamuna Bank Limited


PRODUCTS & SERVICES OF JBL (KHATUNGONG BRANCH)

Jamuna Bank Limited

Senior Vice President

Junior Assistant Vice President

Senior Executive officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer





Officer General Officer General Officer General Officer General

18

Jamuna Bank Limited


A) DEPOSIT PRODUCTS

a). All types of deposit accounts-

The client can maintain different types of deposits accounts i.e. Current, Savings, STD, FDR, and Foreign Currency Account according to his necessity and convenience.

b). Special Deposit Scheme-

i)Monthly Saving Scheme

Small savings can built up prosperous future. Depositors can take the advantage of this deposit scheme by depositing certain amount on monthly basis in 3-50to 10 years time.

ii) Double/Triple Growth Deposit Scheme

A client can avail the facility of making his/her deposit Double and Tripple keeping deposit in 6 and 9.5 years respectively.

iii). Monthly Benefit Scheme

A client can have the advantage of drawing monthly benefit/profit by keeping fixed deposit in the bank for a certain period ranging from 6 months to 5 years.

IV) Lakhpati Scheme

A depositor can take the advantage of becoming a “Lakhpati” through easy monthly deposit to his/her account in 3-7 and 10 years according to his/her affordability.

V) Millionaire Scheme

A depositor can take the advantage of becoming a “Millionaire” through easy monthly deposit to his/her account in 3-7, 10, 12 and 15 years according to his/her affordability.

vi) Kotipati Scheme

A depositor can take the advantage of becoming a “Kotipati” through easy monthly deposit to his/her account in 3-7, 10, 12, 15, 18 and 20 years according to his/her affordability.


Jamuna Bank Limited


vii)Education Savings Scheme

A client can take the advantage OF meeting the educational expenses of his/her children by keeping some funds in his / her deposit account from 4, 6, 8, and 12 years under the scheme.

B). LOAN PRODUCTS

i) General Loan Facility

Letter of Credit, Bank Guarantee, Cash Credit, SOD, Loan(general), Hire Purchase, Lease Finance, LIM, LTR, Work-order Finance, Export Finance, House Building Loan, LDPR and FDBP.

ii) SME Credit Scheme

Double Loan (double amount of loan of FDR value)

Loan for purchase of possession right for shop/business

Festival Credit

Shop/ business office renovation loan

Loan for purchasing capital machinery & vehicle

Working Capital/ trade Finance

Flexible working Capital loan

Loan for Herbal Industry

Loan for Women entrepreneur.

iii)Retail Credit Products-

Any purpose life style loan

Household Durable Loan

Loan against salary

Study Loan


Jamuna Bank Limited


CNG Conversion Loan

JBL Debit and Credit Card

Car Loan

Doctors Loan

Travel Loan

Marriage Loan

Consumer Loan.

C) ELECTRONIC PRODUCTS

Retail Time On-Line any branch banking

24 hours ATM

Debit Card

Telephone Banking

SMS Banking

Internet Banking


Jamuna Bank Limited


DETAILED DESCRIPTION OF JBL’S PRODUCTS

Monthly Savings Scheme (MSS)

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

Savings Plan and Benefit

Tenor Monthly Deposit Maturity Value 3- years Tk.500/- Tk.21,130/-

Tk 1000/- Tk.42,260/- Tk. 1500/- Tk.63,390/- Tk.2000/- Tk.84,520/- Tk. 3000/- Tk. 1,26,780/- Tk. 5000/- Tk. 2,11,300/- Tk.10000/- Tk. 4,22,600/-

5- years Tk. 500/- Tk. 39,990/- Tk. 1000/- Tk. 80,000/- Tk. 1500/- Tk. 1,20,000/- Tk. 2000/- Tk. 1,60,000/- Tk. 3000/- Tk. 2,40,000/- Tk. 5000/- Tk. 4,00,000/- Tk. 10000/- Tk. 8,00,000/-

10- years Tk. 500/- Tk. 1,10,500/- Tk. 1000/- Tk. 2,21,000/- Tk. 1500/- Tk. 3,31,500/- Tk. 2000/- Tk. 4,42,000/- Tk. 3000/- Tk. 6,63,000/- Tk. 5000/- Tk. 11,05,000/- Tk. 10000/- Tk. 22,10,000/-


Jamuna Bank Limited


Eligibility

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

Facility

The concerned customer can avail loan facility upto 80% of the deposited amount.

They can deposit the monthly installment at any branch of JBL and the same through on-line.

Monthly installment can be automatically collected from your savings accounts maintained with JBL.

Installment amount shall be deposited within 10th days of each month. Customer may also deposit Installments on next working day if 10th is holiday.

Terms and Conditions

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

If the scheme is closed within 6-months, customers will get the deposited amount only and no interest/profit will be paid for the scheme. If it is closed after 6- months, , customers will get the deposited amount along with the interest at the normal savings rate up to the time of closure.

Duties and taxes on the deposit, if any, are payable by the customers as per government rules.

The above figures are indicative only and subject to change from time to time.

Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

No loan facility will be allowed from any other banks/Financial Institution against the deposited amount except JBL.


Jamuna Bank Limited


Monthly Benefit Scheme :( MBS)

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

Deposit Plan and Benefit

Tenor Monthly benefit/profit against deposit of TK 1.00 lac

5-years Tk.1020/- 3-years Tk.1000/- 1- year Tk 875/-

Note: government tax and other charges, if any are included with the above figure. How to Apply

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

Eligibility

Any person having age above 18- years can participate in this scheme through opening a savings or current account with any branch of JBL.

Customer must be Bangladeshi Nationals.

Persons below 18- years of old may open this account with his/her legal guardian.

Characteristics

Minimum deposit: Tk 1(one) lac

Maximum deposit: Any amount multiple of Tk.1(one) lac.

After opening the account, the profit element will be deposited in that account.

Upon maturity the term may be renewed for the next tenure.


Jamuna Bank Limited


Overdraft Facility

The concerned customer can avail loan facility up to 40% of the initial deposit.


Bank reserve the right to change the rate of profit during the tenure of deposit.

No loan Facility will be allowed from any other bank(s) / Financial Institution against the deposited amount except JBL.

The initial deposited and the term shall not be changed before maturity.

If the scheme is closed within 6- months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. . If it is closed after 6- months, , customers will get the deposited amount along with the interest at the normal savings rate up to the time of closure.



Double/Triple Growth Deposit Scheme

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

Deposit Period Maturity Value

Fixed Amount 6- years Double Amount Fixed Amount 9.5- years Triple Amount


Jamuna Bank Limited


Eligibility Any person having age above 18- years can participate in this scheme through opening

a savings or current account with any branch of JBL.


Persons below 18- years of old may open this account with his/her legal guardian.Characteristics

Minimum deposit: Tk 1(one) lac

Maximum deposit: Any amount multiple of Tk.1 (one) lac.

After opening the account, the profit element will be deposited in that account.

Upon maturity the term may be renewed for the next tenure.

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

Overdraft Facility The concerned customer can avail loan facility up to 40% of the initial deposit.


Bank reserve the right to change the rate of profit during the tenure of deposit.

No loan Facility will be allowed from any other bank(s) / Financial Institution against the deposited amount except JBL.

The initial deposited and the term shall not be changed before maturity.

If the scheme is closed within 6- months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. . If it is closed after 6- months, , customers will get the deposited amount along with the interest at the normal savings rate up to the time of closure.



Jamuna Bank Limited



Lakhpati deposit Scheme

To become “Lakhpati” is simply a dream for the most of the people of Bangladesh especially to the lower and lower middle class income group. We experience our expectations and wants are enormous in nature in our small span of life. To meet our deposit and wants we need right plan. Keeping the above in mind JBL has introduced

“Lakhpati deposit Scheme” which has flexibility in report of maturity and monthly installment as per affordable capacity.Savings Plan and Benefit

Tenor Monthly Deposit Maturity Value 3 years Tk. 2395/- Tk. 1.00 lac 4 years Tk. 1695/- Tk. 1.00 lac 5 years Tk. 1275/- Tk. 1.00 lac 6 years Tk. 995/- Tk. 1.00 lac 7 years Tk. 800/- Tk. 1.00 lac 10 years Tk. 460/- Tk. 1.00 lac









Jamuna Bank Limited


Kotipati Deposit Scheme

To become “Kotipati” is simply a dream for most of the populace of Bangladesh. It is

realizable for high income group who have strong determination and savings habit. If you

decide and plan to save money from your regular income, you can own Tk 1.00 crore easily

by making a planned savings. In this regard JBL has introduced “Kotipati Deposit Scheme”

offering the savings plan fit to your income and to execute your dream to be a Kotipati by

monthly deposit at your affordable capacity. You can take advantage of the

“Kotipati Deposit Scheme” from JBL and plan for your golden accordingly.

Savings Plan and Benefit

Tenor Monthly Deposit Maturity Value 3 years Tk. 2,39,500/- Tk. 1.00 crore 4 years Tk. 1,69,500/- Tk. 1.00 crore 5 years Tk. 1,27,500/- Tk. 1.00 crore 6 years Tk. 99,500/- Tk. 1.00 crore 7 years Tk. 80,000/- Tk. 1.00 crore 10 years Tk.46,000/- Tk. 1.00 crore 12 years Tk. 33,450/- Tk. 1.00 crore 15 year Tk. 21,485/- Tk. 1.00 crore 18 years Tk. 14,330/- Tk. 1.00 crore 20years Tk. 11,100/- Tk. 1.00 crore


Jamuna Bank Limited


Eligibility

Any person having age above 18- years can participate in this scheme through opening a savings or current account with any branch of JBL.


Persons below 18- years of old may open this account with his/her legal guardian.









Jamuna Bank Limited


GENERAL BANKING


IntroductionAccount opening sectionAccounts sectionClearing sectionLocal Remittance SectionCash Section

Mission

Jamuna Bank Limited


INTRODUCTION

General banking is the heart of total banking system. This department collects money from

the customer & used this deposit to core profit. General banking department performs the

core function of Bank, operates the day-to-day transactions. It is the storage point of all kinds

of transaction of foreign exchange department, loans and advances department and itself. In

fact, bank operates with the people’s money. And this process starts with the General

Banking department.

The activities of the General banking department of JBL are mainly divided into the

following categories:

Account opening section.

Accounts Section.

Clearing Section.

Remittance Section.

Cash Section.


Jamuna Bank Limited


ACCOUNT OPENING SECTION

The relationship between customer and banker begins with opening of an account by the

customer. Opening an account binds banker and customer in to contractual relationship. All

kinds of fraud and forgery start by opening an account. So, they should take extremely

cautious measurers in selecting customers.

Types of Account in JBL: Khatungonj Branch has the following types of accounts:

Current Account

Saving Account

Fixed Deposit Account

STD(Short Term Deposit)

Current Account Opening

A current account is a running and active account, which may be operated upon any number

of times during a working day. There is no restriction on the number & amount withdrawals

from current A/C.

As the banker is under obligation to repay these deposits on demand, they are called demand

liabilities of a banker. To meet such liabilities the banker keeps sufficient cash reserves

against such deposit. There are two facilities for the person who opens a current account.

They are:

A person can open a current account or any entity the entry can be a partnership firm, Ltd,

company proprietor ship firm, association, clubs etc. for opening a current A/C of the above,

the requirements and steps, which are followed by this branch are the following:


Jamuna Bank Limited


For a person

There is an individual application form for opening personal current account. The person,

who wants to open this type of A/C, is said to fulfill the following requirements:

Name Father’s/husbands name Mandate in writing Declaration of nominee Letter of introduction Specimen signature Two copies of passport photographs Nominee’s photograph Initial deposit, etc

For Joint stock companies, Association, Clubs etc:

In case of opening a current A/C of joint stock companies, association, clubs etc, the

following requirements are said to fulfill:

True copies of certificate of incorporation or registration

True copies of memorandum and articles of association (in case of limited companies)

Regulations by laws (in case of associations, clubs etc.)

True copies of resolution of the board of directors of managing committee/governing

body, regarding conduct of A/C.

Certificate list containing names and signature of directors/officer bearers.

For Partnership/Proprietorship Company:

To open a current A/C on the name of any partnership or proprietorship company, the

following documents are required:

Filled up application form stating about the name and address of the firm. Partnership deed. Trade license


Jamuna Bank Limited


Two copies of photograph. Introducer who is also an account holder, etc.

For Public and Private limited company

The documents required opening a current A/C would be:

True copy of memorandum of association and article of association abide be the laws. Copy of certificate of incorporation or registration, trade license. In order to open an account, the customer is first of all asked to fill up the application

form given from the bank. The bank requires few documents of the client due to the procedure, such as proposal for opening an account, name and full address, occupation.

True copy of resolution of managing director/governing body regarding conduct of the A/C.

Saving Account Opening

This A/C for them who wish to save a portion of their present income to meet their future needs & also to earn some income from their savings. Bank imposes certain restriction on the number and amount of withdrawals from a savings A/C, which varies from bank to bank. Normally prior notice is not required for small amount of withdrawals but bank appreciate prior notice for withdrawals big amount.Saving Bank Account is an interest bearing account & may be opened by:

Adult Individuals ClubJoint two or more persons Association

Minor Government or semi government

For saving account interest rate at in now 7% but as it is not constant it changes time to time. Not more than one account is allowed in the same name. Saving account shall not be overdrawn under any circumstances. Even not more than 25% balance can be withdrawn without seven days notice. The minimum balance in the saving account is Tk. 5000. Has its own printed application form for opening a saving account. The application form contains the following particulars, which are to be fulfilled by the individual account holder.

Name of the account holder Business or profession of account holder. Present and permanent address of the account holder Special instruction regarding the operation the accounts (if any) Introduction by any account holder of or by a person acceptable to the branch. Verification by the concerned of the branch


Jamuna Bank Limited


Specimens signature card Two copies of photographs of account holed attested by the introducer. One copy of nominee’s photograph attested by the account holder. Photocopy of passport/certificate of mandatory or employee certificate/identity card.

Fixed Deposit Receipt (FDR):

Fixed deposits are time deposits or time liabilities. These are the deposits in which an amount of cash is deposited in Bank for a fixed period specified in advance. Before opening a Fixed Deposit Account a customer has to fill up an application form, which contains the followings-

Amount in figures Beneficiary’s name and address Time period Rate of Interest Date of Issue Date of maturity How the account will be operated (singly or jointly) Signature (s) F.D.R. no. Special instructions (if any)

After fulfilling the above information and depositing the amount, FDR account is opened and a FDR receipt is issued and it is recorded in the FDR Register, which contains the following information-

FDR account no. FDR (Fixed Deposit Receipt) no. Name of the FDR holder with address Maturity period Maturity date Interest Rate.

In case of FDR Account, the bank does not have to maintain a cash reserve. So, JBL offers a high interest rate in these accounts.


Jamuna Bank Limited


Renewal of FDR

Customer supposes to inform the bank in writing 15 days before the maturity date for encashment. If not, bank normally renews the amount just after the maturity date. Renewal will be for previously agreed maturity period.

Loss of FDR

If the instrument is lost from the possession of the holder, the holder is asked to fulfill the following requirements-

Holder should inform the bank immediately Record a GD (General Diary) in the nearest Police Station. Furnish an Indemnity Bond On fulfilling the above requirements, SBL is then issued a duplicate FDR

Short Term Deposit Account

It means which payable in a short notice. The deposits may be accepted for the period and rates of interests fixed by the Bank. Normally corporate bodies, banks, financial organizations, private individuals their funds temporary. The rate of interest on Short Term Deposit (STD) is 6.0 %. Deposits held in STDA are payable in 7 days. But repeated withdrawal without notice is discouraged. has its own printed application form for opening a STD account.

The application form contains the following particulars, which are to be fulfilled by the individual account holder.

Name of the account holder Business or profession of account holder Address of the account holder Special instruction regarding the operation of the accounts. Introduction by any account holder of the branch or by a person acceptable to the

branch. Verification by the concerned officer of the branch Specimens signature card Photograph of the account holder


Jamuna Bank Limited


Nominee’s photograph Form must be fill up carefully, etc.

Reason for dishonor of cheque:

Insufficient of fund. Not arrange for. Effects not cleared. May be presented again. Exceeds arrangement Full covers not receive. Payments stop by the drawer. Cheque in post date. Drawer signature is difference. Amount in word and figure differ. Crossed cheque must be presented through a bank. Clearing stamp require.

Name of A/c No of DepositCurrent 307Fixed 326Saving 231STD 151Sundry Dr 45

Diagram: Number of Different Types of Deposits:


Number of Different types of Deposits

050

100150200250300350

Current Fixed Saving STD SundryDr

Deposit

Amount

Amount

Jamuna Bank Limited


Transfer of an AccountAccount holder may transfer his account from one branch to another. For this, he/she must apply with proper reason to the manager of the branch where he is maintaining account. Manager then requests to the manager of that branch where the A/C holder wants to transfer his account. Besides, he also sends original copy of account opening form and SSC (Specimen Signature Card) and photocopy of application for transferring the account with the balance remained in the account.

Closing of an AccountAn account may close-

When the customer desirous to close the account. When the account is inoperative for a long time. In case of customer’s death, insanity or insolvency. When the court on that particular A/C issues Garnishee Order.

The A/C closing procedure in brief following-

A customer may close his/her account any time by submitting an application to the manager. So the banker has to check the account of the customer & then checked the balance of this account.

The customer is then asked to draw a final cheque for the final account in the account excluding account close charge and other incidental charges.

The customer then surrenders remaining cheques to the respected officer who tears off these cheques. Vouchers are then issued debiting the particular account and crediting.

In case of joint account the application to close the account must be signed by the holders should also sign the last cheques for withdrawal of the available balance in the account.

If the information is not real, insolvency, insanity or even death of clients notices the bank may stop payments without any prior notice.

CD & SB may be inoperative for a certain period, this case it would be treated as Dormant Account.


Jamuna Bank Limited


If CD & SB Account are inoperative for 5 (five) years may be treated as unclaimed Account.

To close an account, the checkbook is to be returned to the bank charges Tk. 200/= for the same by debiting the amount from his account and rest amount is then paid to the customer. Necessary entries are given to the account closing register and computer. Finally make sure that A/C holder is completely free from all dues.

Accounts Section

In banking transactions are done every day and these transactions are to be recorded properly

and systematically as the banks deal with the depositor’s money. Any deviation in proper

recording may hamper public confidence and the Bank has to suffer a lot. Improver

recording of transactions will lead to the mismatch in the Debit and Credit side. To avoid

these mishaps, the bank provides a separate department whose function is to check the

mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called

Accounts Department.

Nature & Procedure

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.

All records, transactions and all types of statements are kept carefully at Account Section.

After ending transactions period all departments send bills & vouchers of transactions to this department.

The account section of Ktg branch is fully computerized although it follows some manuals for storing information.

Double entry bookkeeping system, slip system under self-balancing method is followed the bank.

The computer now maintains the ledgers. Computer also provides all the statements required for the branches, head office and Bangladesh Bank. Accounts department


Jamuna Bank Limited


compares all figures/amounts, contents of transaction with supplementary statement prepared by computer. If any discrepancy arises regarding any transaction then this department reports to the concerned department.

Function of Accounting Department: We can divide the functions of accounting

department into two categories. One is day to day task and another is periodical task.

Day to day functions: Here day to day function refers to the every day tasks.

Accounting department of JBL performs the following day to day functions:

Recording of transaction in the cash book, general and subsidiary ledger.

Preparing the daily position of deposit and cash.

Recording of inter branch fund transfer.

Checking whatever all the vouchers are correctly passed.

Recording the voucher in the voucher register.

Packing and maintains the total debit and credit vouchers.

Periodical Functions: Periodical functions of accounts department include the

preparation of different weekly, monthly , quarterly and annual statement. The

accounts department prepares the following statement:

Monthly statement of deposits, loans and advances, profit and loss etc.

Quarterly statement of deposits, loan and advances, profit and loss a/c etc.

Yearly statement of classified loans and Advances.

Statement of Affairs

Yearly Budget of the Branch etc.


Jamuna Bank Limited


CLEARING SECTION

According to the article 37(2) of Bangladesh Bank Order, 1972, the bank, which are the member of the clearing house are called the Scheduled Banks. The scheduled banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central bank where every day the representative of the member banks gather to clear the cheques.

Meaning of Clearing: Clearing means the banking machineries set up for setting payment of cheque, drafts, bills etc drawn on other bank called clearing.

Clearing House:

A place provides an arrangement by which various respective of each clearing bank assemble there each business day to exchange local cheque, drafts, bill of exchange etc. which are received by them for collection from their customer. Its objectives are to settle balances/drawing between the banks of a city, town or a region with a minimum of inconvenience and labor.

Clearing Bank

The bank that clears the instrument drawn on other bank through the central clearing house is called clearing bank.

Types of Clearing

There are two types of clearing system:i) Inward Clearing: When a particular branch receives instruments, which on them and sent by other member bank for collection are treated/termed as inward clearing.


Jamuna Bank Limited


ii) Outward Clearing: Means a particular branch receives instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.

Procedure of clearing

Local Bills Collection Cheque (LBC) Are those cheques, which are collected and paid by two different branches of a bank, situated in the same city.

Outward Bills Collection Cheque (O.B.C)Are those cheques that are collected and paid by two different branches opponent bank

situated in the outstation.

Method/Procedure of Inward Clearing Receipt of Instrument (Cheques, Demand Draft, Payment Order, Bills which pay by

cheque etc)

Entry in to inward clearing register.

Preparation of voucher(s).

Clearing cheques must have three important seal before sending to the clearing house. These

are:

Special Crossing Seal

Clearing Stamp

Endorsement

Posting these cheques in Nikash of a computer. After these procedure print out the entry and

copy in one or more floppy disks. Then sorting these bank wise and branch wise.

After completing the above procedure sent the instruments to local office through special

messenger.

In case any return entry in return register with the return reason.


Jamuna Bank Limited


Do not charge any charges for the return cheque.

Clearing Return OutwardWhen bank return some instrument received in inward clearing for some reason.

Preparation of reason memo Entry in to cheque returned registered. Preparation of schedule Proceeds are sent to main branch with IBDA.

Types of Deposit Interest rate

Short Term deposit 6.50%

Saving Deposit(Urban) 7.00%

Saving Deposit(1Year 8.00%

FDR(1/2Month) 12.00%

FDR(3Month) 11.50%

FDR(6Month) 12.25%

FDR(1Year) 13%

MTDR(1 Month) 7.75%

MTDR(3 Month) 11%

MTDR(6 Month) 11.25%

MTDR(1 Year) 11.50%


Jamuna Bank Limited


Local Remittance Section:

Local remittance is one of the main components of General Banking. The activities of Local remittance are:

Telegraphic Transfer

Demand Draft

Pay order

Telegraphic Transfer: It is an order from the issuing branch to the drawee bank/ branch to payment of a certain sum of money to the beneficiary. The payment instruction is sent by telex and fund are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch.

Procedure of issuing TT: Following procedures are followed while issuing of TT:

The applicant fills up the relevant parts of the prescribe application from in triplicate, duly signed the same and gives it to the GB.

GB will fill up the commission part for bank’s use and request the applicant to deposit necessary cash or cheque at the cash booth.

GB will prepare necessary advice. Debit advice is sent to the client if clients account is debited for the amount of TT.

TT. Confirmation Advice is sent to the drawee branch.

GB will prepare telex in appropriate form, sign it and send it to the telex operator for transmission of the message,

Demand Draft: When a draft drawn on a branch situated outside the local area is known as demand draft. For exam: JBL (KTG) is draws a draft for branch to pay TK on its. Sometimes customers use demand draft for the transfer of money from one place to another. For getting a demand draft, customer has to dill up an application form. The form contains date, name and address of the applicant, signature of the applicant, cheque number, draft number, name


Jamuna Bank Limited


of the payee and name of the branch on which the DD will be drawn and the amount of the DD.

Process of issuing Local draft: Followed procedures are followed while issuing local draft:

Get the application from properly filled up and signed by the applicant.

Complete the lower portion of the form for the bank’s use.

Calculate the total amount including the bank’s commission.

If the client wants to debit his account for the payment of the draft amount, the officer

should get the account holder’s signature verified properly, from signature card on

record of the branch and debit clients account for the total amount including

commission.

Pay order: It is a direct order to pay a specific amount of money to a specified of party. For

using a pay order, the client is to submit an application to GB in the prescribed form.. This

form should be properly filled up and signed. The procedure of the issuing pay order is

similar to that of the local draft. For using pay order JBL charges commission on the

following rate:

For TK 1 to 100000, the commission is TK. 25

For TK. 100000 to 500000, the commission is TK. 40

For TK. 500000 to above, the commission is TK. 50

Pay Order Issuing Process:

For issuing a PO, following formalities are to be maintained. This are- Duly filled up the application form by the customer. Deposit money either in cash or by cheque with necessary charges. Prepare the instrument and make necessary entries in the Bills Payable Register where

payee’s name, date, PO no. etc are noted. Deliver the instrument to the customer after scrutinized and approved by authority by

taking signature of the customer on the counterpart.


Jamuna Bank Limited


PO Working Procedure, Shows in a Flow Chart:

Payment of Pay order: The pay order is prescribed to the bank either through clearance or

for credit to the client’s account. While payment, relative entry is given in the pay order

register with the date of payment.

Jamuna Bank Limited

Purchaser has an account with JBL and fills up the relevant form with a credit voucher

Purchase the PO in favor of a person or company

Deposit the PO in his account with JBL or another Bank by the beneficiary

The collecting Banker presents the PO to paying Banker through clearing house

Collecting Bank sends an IBDA

Payee’s account credited with collecting Banker

Payee’s account credited with collecting Banker

If any A/C with JBL

If deposited to another bank

46

The Payee deposits it to his Collecting Banker

Collecting Bank sends the P.O. to the issuing Bank through clearing house arrangement

The Pay Order is passed and cancelled in the deposit section

Payment is given and is registered in Incoming PO Payment Register.

Jamuna Bank Limited


Cancellation of Pay order: The following procedure should be followed for the

cancellation of the pay order:

The client should submit a written request for canceling the pay order attaching

therewith the original pay order.

The signature of the purchaser will have to be verified from the original application

form.

Manager’s prior permission is to be obtained before refunding the amount of the pay

order.

The original entries should be reversed with narration.

Cancellation of the pay order should also be recorded in the register

Amount (TK.) Commission VAT TotalTk 1 to Below 1Lac

Tk 25.00 * @15%= 3.75 28.75

Tk 1 to Below 5 Lac

Tk 50.00 * @15%=7.50 57.50

Tk 5 Lac - Above

Tk 60.00 * @15%=9.00 69.00

ANCILLARY SERVICES(KHATUNGONJ BRANCH)

The other general tasks of General Banking of Jamuna Bank Limited at Khatungonj Branch are as follows:

Maintaining the better customer relationship.


Jamuna Bank Limited


Helping the customers to know the balance(s) of their account(s).

In case of any special statement needed by the customer, then officer printout the statement from Flora Bank, Banking Software by his/her own password.

Cheque received for clearing and fund transfer and fulfills the formalities (Special Crossing, Clearing/Received for collection, Endorsement etc.).

Half yearly statement sent to every Account holder’ address by courier service with the help of a messenger. For Credit account holder sent Monthly statement by courier service.

Cash Section

Cash section is a very sensitive organ of the branch and handle with extra care. Operation of

this section begins at the start of the banking hour. Cash officer begins at the start of the

banking hour. Cash officer begins his/her transaction with taking money from the vault,

known as opening cash balance. The amount of opening cash balance is entered into a

register. Money is receive and paid in this section.

Cash receipt:

At first the depositor fills up the deposit in slip. For saving account and current

account same Deposit in slip is used in this branch.

After filling the required deposit in slip. Depositor deposits the money.

At the end of the day entries of both of these registers are cross checked with the

register kept at the cash counter to see whatever the transactions are correct or not.

Cash Payment:

o When a person comes to the bank to cash a cheque, he first gives it to the computer desk

to know the position of the check and posting of the cheque. If the account has sufficient

fund the computer in charge will post it into the computer, will sign it and seal it.

o The cheque is then sent to the concerned officer. There are two officers who verify the

cheque- one for saving and similar types of account and another for current and similar

types of account.

o If the instrument is free of all kind of error the officer will ask the bearer to sign on the

back of it.


Jamuna Bank Limited


o He will then put his/her initial beside the bearer’s signature. He will also sign it on its

face; will write down the amount by red pen.

Register & Records of Cash Department:

Daily cash Balance Book.

Teller cash proof.

Cash position memo.

Late Deposit register.

Cash transit register.

Volt key register.

All the activity of cash department must be recorded in relevant register with proper approval and seal/endorsement.

On-Line Banking: If someone wants to transfer a certain amount of money to a specific branch than the customers needs to deposit cash mentioning the branch code and a/c no and then a secret will come and need to click cry. to deposit the money. Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now, customers can withdraw and deposit money from any of its 23 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj and Munshigonj.and Munshigonj. Our valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at Dhaka, Citation, Khulna, Sleet and Bogart.All the existing customers of Jamuna Bank Limited will enjoy this service by default. Key features:

Centralized Database

Platform Independent


Jamuna Bank Limited


Real time any branch banking

Internet Banking Interface

ATM Interface

Corporate MIS facility

Delivery Channels:

Branch Network

ATM Network

POS (Point of Sales) Network Internet Banking Network

Features of Online Banking: The features available from an on-line bank account are similar to

those which are available via 'phone banking or visiting the local branch. On-line banking features

do differ between the banks, but usually include:

Transfer of funds between accounts;

Payment of bills;

View balance and statements;

View and maintain Standing Orders;

View Direct Debits.


Jamuna Bank Limited


LOANS & ADVANCES DEPARTMENT


IntroductionImportance & types of bank creditFunctions of credit departmentLoans & advances of JBLPersonal loan for womenLoans & advance at a glance

Mission

Jamuna Bank Limited


INTRODUCTIONThe main objective of a business organization is to get more profit. If the business rotates successfully the profit is gained in a satisfactory mode. As we know very well that bank is nothing but a financial intermediary and it takes deposit from surplus economic units and deploy the fund to deficit economic units through credit deployment, so the more recoverable credit is deployed the more profit is gained. In fact this credit deployment process is being run under Loans & Advances department.

What is Credit?

Credit is one of the important functions of commercial bank. The word “credit” derives the Latin word “cedar”, to trust. Credit may be defined broadly and narrowly.

Broadly- Credit is finance made by one party (Lender, seller, shareholders/Owner) to another (borrower buyer, corporate or non-corporate)

Narrowly- credit is simply the opposite of debts. Debts are obligation of future payments. Credit is the claim to receive this payment.

Bank credit is only one form of credit. In a modern economy, there exist several other sources of credit as well as. Collectively they constitute the financial system.

The fundamental nature of credit is that an element of trust exists between buyer and seller-whether of goods or money. The main use of bank fund is to collect money from surplus unit and lend it to deficit economic unit. In the ordinary course of business, banks accept deposit from the public and lend money to its customer. When a bank advances a loan, it does not pay the amount in cash. But it opens an account in his name and allows him to withdraw the required amount by check. Banks provide credit facilities to businessmen by way of loans and advance, overdraft and cash credit. When a loan is

granted or overdraft is sanctioned, the amount of loan or overdraft is entered in the account of the customer and he is allowed to draw a check unto the amount agreed upon. Thus the bank


Jamuna Bank Limited

your partner for growthcreates a deposit in the name of the borrower. Basically credit is the function by which people can perform their job by depositing and lending money from the banks with an implied interest rate and bank performs here as a middleman. Banks can create money and credit. It happens in two ways. First, when a customer is granted loan, he has to sign a promissory note and receive in turn, a bank’s demand deposit, or cash. The promissory note does not act as money but it receives money and can readily spend almost everywhere. Thus it creates credit. Second, the entire systems of banks also create money as the deposits generated by lending flow from bank to bank. Each bank mustiest aside law can loan out a fractional reserve behind each deposit it receives and the remaining excess. No single bank can lend out more than its excess reserves, the entire banking system can create a multiple volume of deposit money through credit creation.

IMPORTANCE & TYPES OF BANK CREDIT

Importance

Financial Intermediary is an important activity in the economy because it allows fund to be channeled from who might otherwise not put them to productive use to those who will. In this way financial intermediaries can help promote a more efficient and dynamic economy. Some other importance of bank credit:-

Credit is an important determinant of money creation and hence of production, consumption and national income.

Credit influences and is influenced by quantity of money, level of economic activity (GNP), imports and net foreign assets.

Credit influences imports and capital movements, and hence the outcome of balance of payments.

Credit influences behavior of economic sectors (industry, agriculture) and behavior of economic agents.

Credit provides vital linkage among govt. sector, private sector, financial sector and foreign sector.

Credit is the most important activity of Banks, because interest of loans constitutes the major part of Bank income. Hence vital importance of main goods loans.

Types

Modern banking operations touch almost every sphere of economic activity. The extension of bank credit is necessary for expansion of business co- operations. Bank credit is a catalyst for bringing about economic development. Without adequate finance there can be no growth


Jamuna Bank Limited


or maintenance of a stable output. Bank lending is important to the economy, for it makes possible the financial of agricultural, commercial and industrial activities of a nation. The credit facilities are generally allowed by the bank may be in two being in two board categories. They are mentioned below:

1). Funded facilities

Funded facilities can also be divided into the following categories;

Loans:

a). Term loans

# Short term Up to 12 months.

# Medium terms More than 12 and up to 36 months.

# Long term More than 36 months

b). Overdrafts

# Against hypothecation of goods/stock

# Against pledge of goods/stock

# Against any other permissible securities.

c). Other advances

# Against imports bills.

# Against imported merchandise.

# Against Trust receipts (T/R).

# Against Export Bills Purchased/Discounted

# Against Work order

# Against other securities.

2). Non-funded Facilities

# Letter of credit (L/c)

# Bid Bond (B/B)

# Performance Guarantee (P/G)

# Advance payment guarantee (APG)

General credit department of Khatungonj Branch manage the following loans & advances:


Jamuna Bank Limited


1) General Loan.

2) Secured Over Draft.

3) Staff Loan.

4) Cash Credit.

5) Term Loan.

6) Lease Financing.

7) House Building Loan.

8) Others.

FUNCTIONS OF CREDIT DEPARTMENT

Loan appraisal

Preparation of loan proposal

Get the valid loan proposal sanctioned/ renewal

Completion of documentation & mortgage facility

Disbursement of loan/advance

Follow up of loan/advance

Recovery of loan/advance.

These functions are described in the following page:

1) Loans Appraisal

After getting loan application from the customer, bank started appraisal of the loan. Bank in order to appraisal of all loan carefully cheque the following points:

Trust worthiness/ of the loanee Financial status of the loanee Background of family of the loanee Nature scope of business the loanee Market reputation the loanee Tenure of business the loanee Dealings with the bank the loanee Experience is business the loanee


Jamuna Bank Limited


Worth & Property of the loanee Solvency of the loanee Location of business/firm/industry etc. Market demand at business Sister concern position (if any) Turnover in bank A/C Education of Loanee/partner/directors Annual report of company/firm/industry Liquid resources Personal asset of proprietor/partner/director Income tax paid Amount of loan required Purpose for which advances is required

Rate of interest Mortgage/securities offered to bank against the proposed loan/advances. Confidential opinion of other banks regarding the financial position and reputation of

the party. Assets/liabilities of the company/firm/industry Credit line availed with other banks by the applicant himself or in this others ailed

concerns. Branch considering the above point or others may either accord sanction or reject the

proposal & shall communicate the decision to the customer.

2) Preparation of proposal & Sanction

Branches if satisfied with the customer and want to sanctions loan/advances to him/her. Then prepare loan proposal going all details as discussed above and send to the higher authority for approval.Credit proposal is include with the following:

Stock Report Undertaking from the borrower. Valuation report of collateral If head office approved then branch will sanction credit to his clients/contra no. Documents/papers required for procuring credit proposal: Balance sheet for last three years (Actual projected) Memorandum & Article of Association signed by chairman/MD in each

page/partnership sheet Form tin certified by R.J.S.E


Jamuna Bank Limited


Bank statement for last two years List of directors with position of the company owners Profile of directors/partners Present liability position of the company and owners Application for credit facilities in prescribed format Personalized worth information in prescribed format Up to date trade license Name & Address of sister/allied concern Export performance Import performance Previous performance of work completed for last three years.

3). Necessary Documents for Loans Settlements

A). For SOD against F.D.R/P.S.P/Saving Scheme/General Loans

Demand promissory note (DP) Letter of arrangement Letter of lien Letter of continuity

B). For SOD General, Cash Credit (Hypo)

1) D.P Note 2) Letter of arrangement3) Letter of hypothecation 4) Letter of continuity Supplementary

C). For Staff Loan

1) D.P Note 2) Letter of undertaking3) Letter of authority 4) Letter of installment5) Letter of disbursement 6) Letter of arrangement7) Letter of hypothecation 8) Supplementary letter of hypo/pledge

D). For Public Limited Company

With the above documents “Personal Guarantee” of all directors is necessary.

4). Follow up/Recovery of Loans/Advances


Jamuna Bank Limited


After disbursement of a loan advance to a client is the sole duty of the disbursing branch to follow up loan whether it is properly utilize or not. So report on development and submit the same to the manager/sanctioning authority. If a loan properly follows up by the disbursing branch, then type scope of stock-up minimized. In contra loan take opportunity to non-payment of loan.

5). Lending Risk analysis

Bio data of all director/partner Name, annual sales & profit of 5 years largest competition for last 3 years. Industry turnover at last 3 years.

Graphically represent the Growth of loans & advances of JBL (Tk. in million)

Year Amount 2001 751.782002 2365.182003 3495.712004 4952.242005 7801.00


Jamuna Bank Limited


02000400060008000

Amount

2001 2002 2003 20042005

Year

Amount

2001

2002

2003

2004

2005

Loan and Advance of Khatungonj Branch as on November 30, 2007

Sl. Particulars Total A/C Amount (Taka)

1 Term loan(Industrial) 16 497859376.52

2 Term loan (others) 13 205683670.71

3 House Building loan(Term) 01 952206.00

4 Staff loan Agst. P/F 36 1011810.00

5 Transport loan (Staff) 11 3351178.22

6 Loan Genera 33 2168911.00

7 FDBP 00 0.00


Jamuna Bank Limited


8 Cash Credit (Hypo) 22 290105258.62

9 Inland Bill Purchased 00 0.00

10 Inland Doc. Bills Purchased - 619000.00

11 Loan Agst. Trust Receipt (LTR) 68 151699675.99

12 Staff House Building Loan 04 4739828.00

13 Secured Overdraft (Financial Obligation) 53 223648648.13

14 Secured Overdraft (Work Order) 04 61490287.26

15 Secured Overdraft (General) 01 15262795.00

16 Payment Agst. Document (Cash) 11 21985470.00

17 Consumer Credit (All Dept.) 61 5539329.00

18 FBP 00 0.00

19 Forced Loan - 23856865.00

Members Of Jamuna Bank Limited (Kathunganj Branch)

Name of the Officer Designation

MD. Monjoor Hassan Chowdhury

Md. Monirul Alam Chy.

Mr. Miltin Ghoshe

MD. Abdur Rahim

Mr. Nomanur Rashid

Mr. Anwar Hussain

Senior vice president

Senior Assistant Vice President

First Asst. Vice. President

Junior Asst. Vice President

Senior Executive Officer

Executive Officer


Jamuna Bank Limited


Mr. Yousuf Chowdhury

Mr. Shafiqul Islam

Mr. Ikram Pasha

Md. Abdul Malek

MD. Osman Gani

Md. Monir Hussain Miaji

Mr. Rajib paul

Md. Monirul Islam

Mr. Azharul Hoque

Md. Saliumullah Khan

Md. Mostafa Sarwar

Executive Officer

Executive Officer

Executive Officer

Executive Officer






Officer(cash)

Officer (Cash)

FINANCIAL PERFORMANCE AND EVALUATION


Balance SheetProfit And Loss AccountCash flow StatementsLiquidity StatementsBalance with other Banks and financial

institutes: Outside Bangladesh (Nostro Accounts)

Highlights of Jamuna Bank Limited

Mission

Jamuna Bank Limited


Balance Sheet

As at December 31, 2007

Property and AssetsNote

s2007 2006Taka Taka

Cash :1,379,174,

865 1,158,597,

832 Cash in hand (Including foreign currency) 4 412,510,308 225,302,379 Balance with Bangladesh Bank and its agent banks 5 966,664,557 933,295,453 (Including foreign currency)

Balance with other banks and financial institutions 6

1,877,145,119

2,441,758,464


Jamuna Bank Limited


In Bangladesh1,575,483,8

12 2,171,715,0

61 Outside Bangladesh 301,661,307 270,043,403

Money at call on short notice 7 120,00

0,000 555,00

0,000

Investments : 85,390,032,

112 2,552,670,

092

Government 5,346,422,

108 2,286,636,1

37

Others 43,610,

004 266,033,

955

Loans and Advances : 916,617,450

,517 12,796,630

,479

Loans, Cash Credit, Overdrafts, etc.14,565,241,

601 10,578,094,

244

Bills Purchased & discounted 2,052,208,9

16 2,218,536,2

35

Fixed assets including premises, furniture and fixtures 10

174,401,040

137,358,479

Other assets 11847,200,40

3 515,001,21

3

Non-banking assets -

-

Total Property & Assets26,405,404

,056 20,157,016

,559

Liabilities & Capital

Borrowings from Bangladesh Bank, other banks, 1212.00

2,298,932,000

618,347,500

financial institutions and agents

Deposits and other accounts: 1313.00

20,924,021,090

17,284,811,793

Current Accounts and other Accounts2,625,670,5

94 2,088,471,0

60 Bills Payable 354,436,223 169,798,139

Savings Bank Deposits1,407,320,8

42 1,084,008,7

66

Fixed Deposits13,125,131,

370 11,804,010,

526

Bearer Certificates of Deposit -

-


Jamuna Bank Limited

your partner for growthShort Term Deposits 833,809,802 636,875,042

Deposit Under Special Scheme2,525,084,5

73 1,470,287,0

87 Foreign Currency Deposit 52,567,686 31,361,173

Other liabilities 1414.00

1,525,960,928

691,385,760

Total Liabilities:24,748,914

,018 18,594,545

,053

Capital / Shareholders' Equity

Paid up Capital : 15.00

(1,22,57,142 Ordinary shares of Taka 100 each) 151,225,714,2

00 1,072,500,0

00

Share Premium 85,800,000

85,800,000

Statutory Reserve 16 330,676,426 249,667,430

Revaluation Reserve 16.

A16.00

4,907,671 -

Surplus in Profit and Loss A/C 1717.00 9,391,741 154,504,076

Total Shareholders' Equity1,656,490,

038 1,562,471,

506

Total Liabilities and Shareholders' Equity26,405,404

,056 20,157,016

,559

Off - Balance Sheet items Notes2007 2006Taka Taka

Contingent liabilities: Acceptances & Endorsements 2,208,335,800 2,488,785,858 Letters of Guarantee A 1,294,737,513 1,575,593,580 Irrevocable Letters of Credit 2,308,180,010 1,679,826,000 Bills for Collection 372,928,384 679,874,001 Other Contingent Liabilities 225,078,527 150,300,000


Jamuna Bank Limited


Total6,409,260,23

4 6,574,379,439Other Commitments: Documentary credits and short term trade related transactions - - Forward assets purchased and forward deposits placed - - Undrawn note issuance and revolving underwriting facilities - - Undrawn formal standby facilities, credit lines and other commitm - - Total : - -

Total Off-Balance Sheet items including contingent liabilities

6,409,260,234 6,574,379,439

Note : ALetters of guarantee

Money for which the Bank is contingently liable in respect of guarantee given favouring:Directors - -Government - -Bank and other financial institutions - -

Others 1,294,737,513 1,575,593,580 1,294,737,513 1,575,593,580


Jamuna Bank Limited


Profit and Loss Account

For the year ended December 31, 2007

Particulars Notes2007 2006Taka Taka

Interest income & Profit on investment 19 2,230,265,913 2,095,512,096Less: Interest paid on deposits and borrowings, etc. 20 1,774,389,203 1,606,879,773Net interest income 455,876,710 488,632,323

Investment income 21 474,482,522 255,662,108Commission, exchange and brokerage 22 320,726,444 328,765,771Other operating income 23 77,519,246 69,961,320Total operating income (A) 1,328,604,922 1,143,021,522Less: operating Expenditure:

Salary and allowances 24 232,631,098 188,801,858Rent, taxes, insurance, electricity, etc. 25 62,905,322 47,755,817Legal expenses 1,541,252 3,046,438Postage, stamps, telecommunication, etc. 26 28,712,320 25,755,108Stationery, Printings, Advertisements, etc. 27 26,066,423 35,738,634Directors' fees & other expenses 28 4,157,603 2,716,920Auditors' fees 28 100,000 525,000Managing Director's salary & allowances 24.A 6,271,833 2,805,000Depreciation and repairs and maintenance of bank's assets 29 30,248,608 27,208,114Other expenses 30 111,761,993 107,345,721

Total operating expenses (B) 504,396,452 441,698,610

Profit/(loss) before provisions (C=A-B) 18 824,208,470 701,322,912

31 419,163,491 201,154,530


Jamuna Bank Limited

your partner for growthProvision for loans, advances (including off balance sheet expenses)Provision for other assets - 193,485Total Provision (D) 419,163,491 201,348,015Total profit before taxes (C-D) 405,044,979 499,974,897Provision for taxation for the year 315,934,118 246,574,000Current tax 14 311,747,167 246,574,000Deferred tax 14 4,186,951 -Net profit after taxation 89,110,861 253,400,897Retained surplus brought forward from previous year 1,289,876 1,098,158Retained Surplus Before Appropriation 90,400,737 254,499,055Appropriations:Statutory Reserve (20% on pre-tax profit) 81,008,996 99,994,979Proposed Dividend as Bonus share 32 - -Retained Surplus 17 9,391,741 154,504,076Earnings Per Share (EPS) 33 8.04 31.94

Cash and Flow Stetements

For the year ended December 31, 2008

Particulars Notes2007 2006Taka Taka

A) Cash flows from operating activities

Interest receipts 2,230,265,9132,095,512,09

6

Interest payments (1,774,389,203)(1,606,879,7

73)Fee and commission receipts 320,726,444 328,765,771

Payments to employees (238,902,931)(191,606,858

)


Jamuna Bank Limited

your partner for growthPayments to suppliers (64,939,375) (70,972,775)

Income taxes paid (195,926,625)(295,471,799

)Receipts from other operating activities 34 77,519,246 69,961,320

Payments to other operating activities 35 (177,508,711)(160,441,352

)Operating profit before changes in operating assets and liabilities (Note-A)(i)

176,844,758168,866,63

0

Increase /Decrease in operating assets & liabilities

Loans and advances to the customers (3,820,820,038)(1,784,795,9

24)

Other assets (136,272,565)(100,769,158

)

Deposit from other bankss 605,818,146(2,537,541,1

12)

Deposit from customers 3,017,376,4195,210,054,71

1Interest payable to the customers & banks 16,014,732 158,168,879

Other current liabilities 36 104,385,229(216,457,805

)

Cash received from operating assets and liabilities (Note-A) (ii)

(213,498,077)728,659,59

1

Net cash from operating activities (A=i+ii) (36,653,319)897,526,22

1

B) Cash flows from investing activitiesIncome received from investments 355,415,051 237,426,022Proceeds from sale of securities (gain) 119,067,471 18,236,086Payments for purchase of securities 222,423,951 266,102,599Purchase of property, plant & equipment (65,180,367) (50,312,683)Adjustment for property, plant & equipment 5,092,371 740,715

Net cash from investing activities 636,818,477472,192,73

9

C) Cash flows from financing activities

Payments in borrowings 1,680,584,500(249,452,500

)Received from Initial Public Offering (IPO) - 514,800,000

Cash Dividend - (12,870,000)

Net cash from financing activities 1,680,584,500

252,477,50


Jamuna Bank Limited

your partner for growth0

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

2,280,749,658

1,622,196,460

E)Cash and cash equivalents at beginning year

6,441,992,433

4,819,795,973

F)Cash and cash equivalents at end of the period (D+E) (Note - B)

8,722,742,092

6,441,992,433

RECONCILIATION2007 2006

NOTE : A Taka Taka

Profit before tax 405,044,979 499,974,897

Less : Investment income (474,482,522)(255,662,108

)

(69,437,543)244,312,78

9

Add : Depreciation 23,045,435 18,677,625Provision for loan, advances and other assets 419,163,491 201,348,015

Less : Advance income tax (195,926,625)(295,471,799

)

176,844,758168,866,63

0NOTE : BClosing cash & cash equivalentCash in hand (including foreign currency) 412,510,308 225,302,379Balance with Bangladesh Bank and its agent banks 966,664,557 933,295,453

Balance with other bank's and financial institutions 1,877,145,1192,441,758,46

4Money at call on short notice 120,000,000 555,000,000Prize bond in hand 371,700 983,100

Government securities 5,346,050,4082,285,653,03

7

8,722,742,0926,441,992,4

33


Jamuna Bank Limited


Liquidity StatementAs at December 31, 2007

ParticularsUpto 1 month

1 - 3 months

3 - 12 months 1 - 5 years

More than 5 years Total

Assets :

Cash in hand

1,379,174,865

-

-

-

-

1,379,174,865

Balance with other banks & financial institutions

357,145,119

300,000,000

1,220,000,000

-

-

1,877,145,119

Money at call on short notice

120,000,000

-

-

-

-

120,000,000

Investment

2,272,371,700

-

-

488,410,004

2,629,250,408

5,390,032,112

Loans & Advances

360,933,476

3,457,399,144

8,041,872,696

4,150,367,185

606,878,016

16,617,450,517

Fixed assets including premises, furniture and fixtures

-

-

-

12,353,906

162,047,134

174,401,040

Other Assets 71,498,729

235,187,505

6,488,440

534,025,729

-

847,200,403

Non-banking assets

-

-

-

-

-

-

Total Assets

4,561,123,889

3,992,586,649

9,268,361,136

5,185,156,824

3,398,175,558

26,405,404,056


Jamuna Bank Limited


Liabilities : Borrowings from Bangladesh Bank, other banks, financial institutions and agents

2,011,932,000

-

287,000,000

-

-

2,298,932,000

Deposits and other accounts

3,159,333,378

4,807,445,113

5,191,704,702

5,811,861,601

1,953,676,296

20,924,021,090

Other liabilities 14,686,021

-

199,821,996

571,276,311

740,176,600

1,525,960,928

Total Liabilities

5,185,951,399

4,807,445,113

5,678,526,698

6,383,137,912

2,693,852,896

24,748,914,018

Net Liquidity

(624,827,510)

(814,858,464)

3,589,834,438

(1,197,981,088)

704,322,662

1,656,490,038

Balance with other Banks and financial institutes: Outside Bangladesh (Nostro Accounts)

Sl No.

Name of the Foreign Bank

Currency Name

As on December 31, 2007 As on December 31, 2006

Amount in Foreign

Currency

Conversion Rate

Amount in BD Taka

Amount in Foreign

Currency

Conversion Rate

Amount in BD Taka

1

American Express Bank, Kolkata, India ACUD

35,727.26 68.7850 2,457,499.58 192,806.93 69.9375 13,484,434.6

7

2

Standard Chartered Bank, Kilkata, India ACUD

106,047.93 68.7850 7,294,506.87 144,697.96 69.9375 10,119,813.5

8

3

Standard Chartered Bank,Srilanka ACUD

2,420.00 68.7850 166,459.70 32,530.00 69.9375 2,275,066.88

4Nepal Bangladesh Bank Ltd, Nepal ACUD

185.00 68.7850 12,725.23 185.00 69.9375 12,938.44

5

Standard Chartered Bank, Karachi, Pakistan ACUD

4,944.30 68.7850 340,093.68 68,605.23 69.9375 4,798,078.27


Jamuna Bank Limited

your partner for growth6 UTI Bank Ltd, India ACUD 1,548.41 68.7850 106,507.38 1,548.41 69.9375 108,291.92

7Bank of Bhutan, Bhutan ACUD

4,234.32 68.7850 291,257.70 17,834.32 69.9375 1,247,287.76

8ICICI Bank Ltd, India ACUD

102,667.29 68.7850 7,061,969.54 235,963.88 69.9375 16,502,723.8

6

9Mashreq Bank Psc, Mumbai, India ACUD

262,963.85 68.7850 18,087,968.42 4,893.00 69.9375 342,204.19

10

Habib Bank AD, Zurich, Switzerland CHF

2,715.88 60.9651 165,573.76 13,713.58 57.3494 786,465.58

11Hypovereins Bank AG, Germany EUR

56,155.78 101.0337 5,673,623.42 103,976.58 92.1357 9,579,854.98

12

Standard Chartered Bank, London, UK GBP

42,519.61 137.0702 5,828,169.32 22,796.71 136.9637 3,122,321.75

13American Express Bank, Tokyo, Japan YEN

1,361,945.00 0.6153 837,936.66 669,625.00 0.5916 396,150.15

14

Standard Chartered Bank , NY, USA USD

362,097.53 68.7850 24,906,878.60 149,358.79 69.9375 10,445,780.3

8

15Mashreq Bank Psc, NY, USA USD

2,750,493.25 68.7850 189,195,068.7

0 866,820.34 69.9375

60,623,247.53

16 CITI NA, NY, USA USD141,524.65 68.7850 9,734,773.05 199,857.80 69.9375

13,977,554.89

17Habib American Bank, NY, USA USD

310,358.75 68.7850 21,348,026.62 269,341.47 69.9375 18,837,069.0

6

18American Express Bank, NY, USA USD

60,874.77 68.7850 4,187,271.05 1,007,031.57 69.9375 70,429,270.4

3

19HSBC Bank, NY, USA USD

57,643.35 68.7850 3,964,997.83 471,202.84 69.9375 32,954,748.6

2

Total301,661,307

.11 Total270,043,40

2.93

As on December 31, 2007 As on December 31, 2006Currency Amount % Currency Amount %

USD289,156,003.94

95.85 USD256,158,510.4

5 94.86

GBP 5,828,169.32 1.93 GBP 3,122,321.75 1.16

EURO 5,673,623.42 1.88 EURO 9,579,954.98 3.55

JPY 837,936.66 0.28 JPY 396,150.15 0.15

CHF 165,573.76 0.05 CHF 786,465.58 0.29

Total301,661,307.

10 100 Total270,043,402.

93 100.00

HIGHLIGHTS OF JAMUNA BANK LIMITED

Amount in Taka (Except Ratio)

Sl. No. Particulars 2007 2006

1 Paid up Capital 1,225,714,200 1,072,500,000


Jamuna Bank Limited

your partner for growth2 Total Capital 1,872,719,99 1,701,825,130

3 Capital Surplus 364,612,891 666,269,650

4 Total Assets 26,405,404,056 20,157,016,559

5 Total Deposits 20,924,021,090 17,284,811,793

6 Total Loans and Advances 16,617,450,517 12,796,630,479

7 Total Contingent Liabilities and Commitments 6,409,260,234 6,574,379,439

8 Advance Deposit Ratio 79.42% 74.03%

9 Percentage of Classified Loans against total

Loans

5.06% 5.03%

10 Profit after Taxation 89,110,861 253,400,897

11 Amount classified Loans 840,339,000 643,365,000

12 Provision kept against Classified Loans 518,852,491 181,466,000

13 Provision surplus/deficit - -

14 Cost of fund 12.26% 12.18%

15 Interest earning assets 24,004,627,748 18,346,059,035

16 Non interest earning assets 2,400,776,308 1,810,957,524

17 Return on assets 0.34% 1.26%

18 Return on investments 8.80% 10.02%

19 Income from investment 474,482,522 255,662,108

20 Earning per share(Tk.) 7.27 23.63

21 Net income per share Tk. 8.04 31.94

22 Price Earning Ratio (Times) 53.61 12.26

23 Net Asset value (Tk.) 135.14 145.68


Jamuna Bank Limited


Ratio Analysis

Most of the Bank’s analysts use different tools of analysis like comparative/horizontal

analysis, vertical analysis and ratio analysis for different purposes. The most popular tool

used by the analysis is Ratio Analysis for measuring the following:

1. Liquidity

2. Profitability

3. Leverage

More simply, the Banker analysts are in attempts to analyze and interpret the operational and

financial performance standing of a concern with the help of profitability ratios, liquidity

ratios and leverage ratios.

Profitability Ratios:

I calculate these ratios coparing different variables taken from Operation Statements and

position Statements.

2007 2006

Gross Profit1. Gross Margin(%)= ------------------------ X 100 = 7.9% 1.11%

Sales(Total Loans)

Operating Profit2. Operating Margin(%)= -------------------------- X 100 = 4.95% 5.48%

Sales

Net Profit3. Net Margin(%) = -------------------------- X 100 = 2.43% 3.90%

Sales


Jamuna Bank Limited


Net Profit after tax4. Return on Assets(%)= ---------------------------- X 100 = 0.34% 1.26%

Equity

2007 2006

Net Profit after Tax5. Earning Per Share= ---------------------------- X 100 = 7.27 23.63

Number of Shares Outstanding

Liquidity Ratio:Current Assets

1. Current Ratio= ----------------------------- = 1.067 1.084 Current Liabilities

Leverage Ratio:Total Debt

1. Debt Ratio= ------------------------------ X 100 = 79% 85%Total Assets

EBIT2. Interest Coverage Ratio= ------------------- = 0.18Times 0.23Times

Total Interest


Jamuna Bank Limited


OVERALL EVALUATION OF THE BANK


Jamuna Bank Limited


Analysis of the Study

SWOT analysis of Jamuna Bank Limited:

Strength:

Experience Top Management.

Satisfactory Capital base.

Low inflation in loan exposure.

Prospective IT infrastructure.

Sufficient and experience manpower.


Swot analysis of JBLProblems of the bankRecommendation for the bankConclusionReference

Mission

Jamuna Bank Limited


Strong and qualified manpower.

Weakness:

Limited Market Share.

Exposure to large loan.

Weak fund management.

High cost of fund.

Islami Branch funds are not ring fenced.

Opportunity:

Promotional activities can be high.

Can lunch some new consumer scheme.

Regulatory environment favoring private sector

development.

Small and medium enterprises.

Can diversify the investment.

Threats:

Increased competition in the market for quality assets.

Supply gap of foreign currency.

Overall liquidity crisis in money market.

Unstable political situation.

PROBLEMS OF THE BANK

High cost of fund: High cost of fund is a strategic problem. Due to intense competition among the banks for finding sources of deposits, powers of depositors in this industry has grown immensely resulting increasing cost of fund for the bank. Limited branch network: Jamuna Bank Limited covers only four districts out of sixty-four districts of Bangladesh with only 23 branches and with major concentrations in Dhaka and Chittagong. Whereas other banks like Al-Arafa Islami Bank has 35 branches in 14 districts of Bangladesh and Islami Bank plans to cover the entire country within the next six years. In some respect limited


Jamuna Bank Limited


branches mean limited income for a bank. Jamuna Bank is occurring huge lost sales due to its limited presence in the country. No specific marketing Department and officers: In Jamuna Bank Limited, there is no actual marketing department. The marketing strategies are at currently being implemented by the Personal Banking Division consisting of only six members and headed by an Executive Vice President.

Concentration of loan in a particular sector: More than 75% of the bank’s credit is concentrated in the industrial sector. The garments sector has faced near extinction due to the September 11, 2001 incident. The incident has forced many garments industries to incur loss and some have been closed down due to loss. As after 2005, this sector is facing competition in the world market due to elimination of quotas; so much exposure in this sector may be risky for the bank.

Gap management: Jamuna Bank’s management has been trying to reduce the gap between its interest rate sensitive assets and interest rate sensitive liabilities. Over the years, interest rate sensitive liabilities increased more than the pace of interest rate sensitive assets resulting negative gap. If interest rate rises in the market it will hurt bank’s profitability to a great extent. Decentralized Database Management System:The database management system of Jamuna Bank is decentralized. To have an efficient and effective line of products and to maintain them properly, it is highly recommended that the database management system be upgraded to a centralized database management system.

RECOMMENDATION FOR THE BANK

I have already discussed about the overall operations & activities of the bank. I have also tried to point out the bank/companies comparative position. After analyzing the overall situation I can recommend some proposal. These could be as below:

Jamuna Bank Limited should follow the following recommendations:

Jamuna Bank Limited should bring out new products keeping in tune and perfect harmony of modern technology. Implementing Modern technology and modern Banking service such as ATM, credit cards and any branch banking, Jamuna Bank may gain more market share by winning the hearts of many.


Jamuna Bank Limited


Jamuna Bank may restructure its hierarchy of management. The entry-level post for MBAs and other qualified people may be Senior Officer and might reduce the following posts to eight posts before the CEO. By doing this restructuring the bank may able to attract bright and energetic employees who are not presently interested to join Jamuna Bank.

Jamuna Bank Limited at current has limited scheme or policies for "Islamic Banking". By introducing Islamic Banking as a product and service more widely, Jamuna Bank can capture a new market and even sweep away existing clients of Islamic Banking services offered by various banks.

It has been seen over the years of operation of Jamuna Bank, there exists the tendency to increase the number of fixed deposits rather than reducing them. The interest rates offered for fixed deposits range from 8.50% to 11.25%, whereas, the savings deposit offers a rate of 7%. In banks such as Arab Bangladesh Bank or Even Standard Chartered offers lower rates for both he fixed deposits as well as the savings account. This operation of Jamuna Bank has high cost of funds. Therefore, to reduce the high cost of fund, JBL needs to reduce the concentration of fixed deposits and replace them with either higher concentration of current deposits or savings deposits.

To overcome the problem of limited branch network the bank may expand to strategically important places for its business rapidly. Though branch expansion depends on the approval of Bangladesh Bank, the central bank of the country, the bank should relentlessly try for expansion. Some of its rivals have already started expanding their limited branch network so as to capture the unexplored market as new comers to the market. Hence, if the bank makes unnecessary delay in this regard it will fall behind and will possibly not meet its short term objectives or goals. So the bank should expand in these regions without making any delay. The number of branches should be increased to at least 35 within 2007 and 45 within 2008.

The bank should take the initiative to recruit young, energetic, creative and innovative personnel for the post of Marketing Officers and Executives for the development of the Marketing Division of Jamuna Bank Limited.

Keeping in touch with the Islamic Banking, and by meeting the ongoing demands of potential clients who want to avail modern day facilities yet stay on the Islamic side of the

line, Standard Bank should offer another credit card beside the normal co branded one, which can only be used for the consumption of halal products and services. The naming of this credit card should be "Halal Credit Card".

Without making any delay, the bank should establish an independent research and development department immediately. To run this department, the bank may snatch its competitor’s employees such as those from Standard Chartered or HBC, by offering them attractive package which should match or ca be more from what the competitor is offering at the moment.


Jamuna Bank Limited


The bank should increase its investments in sectors like automobiles, real state, health care etc. in order to make adjustment in its credit portfolio. Because the present portfolio is somewhat off-balance due to heavy exposure in industrial sector.

The bank’s management should reduce the gap between its interest rate sensitive assets and interest rate sensitive liabilities by investing more in interest rate sensitive assets.

The bank should follow Social Marketing concept & the message of SMILE:

S = Service

M = For Management

I = For Image

L = For Lending

E = For Employee.

The bank should increase their promotional activities.

Finally, the branch manager should be given more power and responsibility for respective concern officer at the branch.

I think that if these actions are taken, the bank/company’s image will be increased in competitive way. Then the company will find a better stand with comparison to its competitors. So the management should give their more emphasis on these aspects and should try to implement these in their organization.

SUMMARY & CONCLUSION

Modern time is the golden time of business. Now a day the idea of banking is also developed and a huge number of private C.B is competing for business. So definitely it’s a matter of thing that, how to established an idea-with different technique. Jamuna Bank Limited is a Third -generation bank in Bangladesh & has a strong position in the today’s competitive market. Jamuna Bank Limited is continuously upgrading if self with a view to be competitive and to remain the leader of the banking industry.


Jamuna Bank Limited


This is a well-established statement that practical situations always differ from theoretical explanation. During my service life with JBL almost all the desks have been observed. And I have found theory deviates from the practice more or less though three months are not enough time to find out all the discrepancy between theory and practice. Among all experiences some noticeable observations are described below:

The officers were mostly courteous, friendly in nature and eager to help despite the tremendous workload.

As a private bank JBL is trying it’s best to extend their service to the public.

A very working environment was remaining in the JBL, Khatungonj Branch. During my long relationship with Khatungonj Branch, it is found that the Khatungonj Branch provides all kinds of commercial banking services to its customers. Foreign Exchange department rendering all the services related to international trade and remittance. Loans and advances analyses credit proposal and disburse credit if proposal is sound. General banking is engaged in cash receipt and payment, cheque clearing, local remittance etc.

It is well established that theory without practice is blind. During the practical orientation I have observed the function of General Banking, Foreign Exchange, and Credit department of JBL, which help me a lot to be a professional banker in future.

Out of the above discussion a conclusion can be drawn after saying that, the present customer dealing procedure is quite well at this moment. The computerized transaction makes the system efficient and effective.

REFERENCE

Annual Report of Jamuna Bank Limited.

Personal Desk in Khatungonj Branch.

Different Journal, Newspapers and Publications.


Jamuna Bank Limited


Guidelines for Foreign Exchange (Forex) Transactions.

Reading Material on Credit Management

Web page of the Bank.

Marketing Research.By malhotra.

Profile of JBL.

Monthly transaction record of the bank.

Oxford Dictionary
