Jamuna Bank's Growth Partner Role

Jamuna Bank Limited
your partner for growth
Background of the study Objectives of the Study Methodology of the study Limitations of the study
Jamuna Bank Limited
Jamuna Bank Limited

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
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
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 sourcesi). 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
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
Jamuna Bank Limited

A BRIEF OVERVIEW OF Introduction J of JBL Objectives & strategies AMUNA BANK

Mission &vision of JBL Themes for growth & future trust Performance of the JBL Corporate culture Organogram of JBL
Jamuna Bank Limited
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, Dhaka1000. 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 multidiscipline 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
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
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
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
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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 Banks 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. 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,
Jamuna Bank Limited
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Jamuna Bank Limited

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 Description Interest Income Income from Investment Commission, Exchange 31/12/2006 652657558 53763373 77686907 31/12/2005 1163089970 80439298 133703617 31/12/2004 738496818 27373544 71204997 31/12/2003 344892685 15478065 25948013
past years are as follows:
and Brokerage Income Other Operating Income 7189160 20036441 9659631 4877928 Total Income 791296998 1397269326 846734990 391196691 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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
Designation No 01 Managing Director 02 Deputy Managing Director 03 Executive Officer 04 Officer 05 Casual and Others(Peon, Tea boy & Driver) Total Employees
Number of Employee 1 1 120 398 80 600
Jamuna Bank Limited
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Jamuna Bank Limited

ORGANOGRAM OF JBL (Sources: Company Profile)

Managing Director Additional Managing Director Senior Executive Vice President Executive Vice President
Senior Vice President Vice President
Assistant Vice President First Assistant Vice President Junior Assistant Vice President Senior Executive Officer
Executive Officer First Executive Officer Provisionary Officer Officer
Jamuna Bank Limited
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Jamuna Bank Limited

Introduction
BRIEF OVERVIEW OF KTG BRANCH
Modern Equipment Of The Bank Organogram of Jamuna Bank(Khatunganj Branch) Products & services of JBL (Khatungonj Branch)
Mission
Jamuna Bank Limited 15
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 Accounts Division Foreign Exchange Division
Jamuna Bank Limited
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Jamuna Bank Limited

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. 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.
Jamuna Bank Limited
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Jamuna Bank Limited

Organogram of Jamuna Bank (Khatunganj Branch)

Senior Vice President
Junior Assistant Vice President
Senior Executive officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
First Executive Officer
Officer General
Officer General
Officer General
Officer General
Jamuna Bank Limited
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Jamuna Bank Limited

PRODUCTS & SERVICES OF JBL (KHATUNGONG BRANCH) A) DEPOSIT PRODUCTS a). All types of deposit accountsThe 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 Schemei)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
Jamuna Bank Limited
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Jamuna Bank Limited

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.
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
Jamuna Bank Limited

Household Durable Loan Loan against salary Study Loan 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
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Jamuna Bank Limited

DETAILED DESCRIPTION OF JBLS 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 3- years Monthly Deposit Tk.500/Tk 1000/Tk. 1500/Tk.2000/Tk. 3000/Tk. 5000/Tk.10000/Tk. 500/Tk. 1000/Tk. 1500/Tk. 2000/Tk. 3000/Tk. 5000/Tk. 10000/Tk. 500/Tk. 1000/Tk. 1500/Tk. 2000/Tk. 3000/Maturity Value Tk.21,130/Tk.42,260/Tk.63,390/Tk.84,520/Tk. 1,26,780/Tk. 2,11,300/Tk. 4,22,600/Tk. 39,990/Tk. 80,000/Tk. 1,20,000/Tk. 1,60,000/Tk. 2,40,000/Tk. 4,00,000/Tk. 8,00,000/Tk. 1,10,500/Tk. 2,21,000/Tk. 3,31,500/Tk. 4,42,000/Tk. 6,63,000/22
5- years
10- years
Jamuna Bank Limited
Jamuna Bank Limited

Tk. 5000/Tk. 10000/-
Tk. 11,05,000/Tk. 22,10,000/-
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.
Jamuna Bank Limited
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Jamuna Bank Limited


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.
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 5-years 3-years 1- year Monthly benefit/profit against deposit of TK 1.00 lac Tk.1020/Tk.1000/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.
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Jamuna Bank Limited
Jamuna Bank Limited


After opening the account, the profit element will be deposited in that account. Upon maturity the term may be renewed for the next tenure.
Overdraft Facility
The concerned customer can avail loan facility up to 40% of the initial deposit.
Terms and Conditions

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. Duties and taxes on the deposit, if any, are payable by the customers as per government rules. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.
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 Fixed Amount
Jamuna Bank Limited
Period 6- years
Maturity Value Double Amount

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Jamuna Bank Limited

Fixed Amount
9.5- years
Triple Amount
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. 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. Overdraft Facility The concerned customer can avail loan facility up to 40% of the initial deposit. Terms and Conditions 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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. Duties and taxes on the deposit, if any, are payable by the customers as per government rules. Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank. 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 3 years 4 years 5 years 6 years 7 years 10 years Terms and Conditions
Monthly Deposit Tk. 2395/Tk. 1695/Tk. 1275/Tk. 995/Tk. 800/Tk. 460/-
Maturity Value Tk. 1.00 lac Tk. 1.00 lac Tk. 1.00 lac Tk. 1.00 lac Tk. 1.00 lac Tk. 1.00 lac
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.
Jamuna Bank Limited
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Jamuna Bank Limited


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.
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 3 years 4 years 5 years 6 years 7 years 10 years 12 years 15 year 18 years 20years Monthly Deposit Tk. 2,39,500/Tk. 1,69,500/Tk. 1,27,500/Tk. 99,500/Tk. 80,000/Tk.46,000/Tk. 33,450/Tk. 21,485/Tk. 14,330/Tk. 11,100/Maturity Value Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore Tk. 1.00 crore
Jamuna Bank Limited
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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. Customer must be Bangladeshi Nationals. Persons below 18- years of old may open this account with his/her legal guardian. 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
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Jamuna Bank Limited

Introduction Account opening section Accounts section Clearing section ENERAL G Local Remittance Section Cash Section
BANKING
Jamuna Bank Limited
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Jamuna Bank Limited
Mission
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 peoples 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
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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
Jamuna Bank Limited
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Jamuna Bank Limited

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:
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 Fathers/husbands name Mandate in writing Declaration of nominee Letter of introduction Specimen signature Two copies of passport photographs Nominees 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 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 Joint two or more persons Minor Club Association 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
Jamuna Bank Limited

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 Specimens signature card Two copies of photographs of account holed attested by the introducer. One copy of nominees 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 Beneficiarys 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.
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Jamuna Bank Limited
Jamuna Bank Limited

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.
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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 Nominees 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 Current Fixed Saving STD Sundry Dr No of Deposit 307 326 231 151 45
Diagram: Number of Different Types of Deposits:

Jamuna Bank Limited

Number of Different types of Deposits

350 300 250 200 150 100 50 0 Current Fixed Saving Deposit STD Sundry Dr
Transfer of an Account Account 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 Account An account may close When the customer desirous to close the account. When the account is inoperative for a long time. In case of customers 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.
Amo unt
Amount
Jamuna Bank Limited

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. 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 depositors 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.
Jamuna Bank Limited

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 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.
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Jamuna Bank Limited
Jamuna Bank Limited


Statement of Affairs Yearly Budget of the Branch etc.
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.
Jamuna Bank Limited

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. 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
Jamuna Bank Limited

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. Do not charge any charges for the return cheque.
Clearing Return Outward

When 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 6.50% 7.00% 8.00% 12.00% 11.50% 12.25% 13% 7.75% 11% 11.25% 11.50%
Short Term deposit Saving Deposit(Urban) Saving Deposit(1Year FDR(1/2Month) FDR(3Month) FDR(6Month) FDR(1Year) MTDR(1 Month) MTDR(3 Month) MTDR(6 Month) MTDR(1 Year)
Jamuna Bank Limited
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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 banks 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 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 banks use. Calculate the total amount including the banks commission. If the client wants to debit his account for the payment of the draft amount, the officer should get the account holders 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:
Jamuna Bank Limited

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 payees 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.
PO Working Procedure, Shows in a Flow Chart:
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
If any A/C with JBL Collecting Bank sends an IBDA
Deposit the PO in his account with JBL or another Bank by the beneficiary If deposited to another bank
Payees account credited with collecting Banker
The collecting Banker presents the PO to paying Banker through clearing house
Payees account credited with collecting Banker
Jamuna Bank Limited
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Jamuna Bank Limited

Payment of Pay order: The pay order is prescribed to the bank either through clearance or for credit to the clients account. While payment, relative entry is given in the pay order register with the date of payment.
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.
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. Managers 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 Tk 1 to Below Tk 25.00 1Lac Tk 1 to Tk 50.00 VAT * @15%= 3.75 * @15%=7.50 Total 28.75 57.50
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Jamuna Bank Limited
Jamuna Bank Limited

Below 5 Lac Tk 5 Lac - Tk 60.00 Above
* @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. 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 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
same Deposit in slip is used in this branch.

kept at the cash counter to see whatever the transactions are correct or not. Cash Payment:
Jamuna Bank Limited
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Jamuna Bank Limited

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. 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. If the instrument is free of all kind of error the officer will ask the bearer to sign on the back of it. He will then put his/her initial beside the bearers 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 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;
Jamuna Bank Limited
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Jamuna Bank Limited


View and maintain Standing Orders;

View Direct Debits.
LOANS & ADVANCES DEPARTMENT
Jamuna Bank Limited
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Introduction
Importance & types of bank credit Functions of credit department Loans & advances of JBL Personal loan for women Loans & advance at a glance
Jamuna Bank Limited

Mission
INTRODUCTION
The 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 sellerwhether 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 creates 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 banks 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 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 # Medium terms # Long term b). Overdrafts # Against hypothecation of goods/stock # Against pledge of goods/stock # Against any other permissible securities. c). Other advances Up to 12 months. More than 12 and up to 36 months. More than 36 months
Jamuna Bank Limited
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Jamuna Bank Limited

# 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: 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.
Jamuna Bank Limited

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 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 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
Jamuna Bank Limited
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Jamuna Bank Limited

B). For SOD General, Cash Credit (Hypo) 1) D.P Note 2) 3) Letter of hypothecation 4) C). For Staff Loan 1) 3) 5) 7) D.P Note 2) Letter of authority 4) Letter of disbursement 6) Letter of hypothecation 8) Letter of arrangement Letter of continuity Supplementary Letter of undertaking Letter of installment Letter of arrangement 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 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 nonpayment 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 2001 2002 2003 2004 2005 Amount 751.78 2365.18 3495.71 4952.24 7801.00
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Jamuna Bank Limited

A m ou n t 8 00 0 6 00 0 A m o u n4 00 0 t 2 00 0 0
2 0 01 2 0 02 2 0 03 2 00 12 00 22 0 0320 0 4 0 05 2 Ye a r 2 0 04 2 0 05
Loan and Advance of Khatungonj Branch as on November 30, 2007 Sl. 1 2 3 4 5 6 7 8 Particulars Term loan(Industrial) Term loan (others) House Building loan(Term) Staff loan Agst. P/F Transport loan (Staff) Loan Genera FDBP Cash Credit (Hypo) Total A/C 16 13 01 36 11 33 00 22 Amount (Taka) 497859376.52 205683670.71 952206.00 1011810.00 3351178.22 2168911.00 0.00 290105258.62
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Jamuna Bank Limited
Jamuna Bank Limited

9 10 11 12 13 14 15 16 17 18 19
Inland Bill Purchased Inland Doc. Bills Purchased Loan Agst. Trust Receipt (LTR) Staff House Building Loan Secured Overdraft (Financial Obligation) Secured Overdraft (Work Order) Secured Overdraft (General) Payment Agst. Document (Cash) Consumer Credit (All Dept.) FBP Forced Loan
00 68 04 53 04 01 11 61 00 -
0.00 619000.00 151699675.99 4739828.00 223648648.13 61490287.26 15262795.00 21985470.00 5539329.00 0.00 23856865.00
Members Of Jamuna Bank Limited (Kathunganj Branch)

Name of the Officer

Designation Senior vice president Senior Assistant Vice President First Asst. Vice. President Junior Asst. Vice President Senior Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer First Executive Officer
60
MD. Monjoor Hassan Chowdhury Md. Monirul Alam Chy. Mr. Miltin Ghoshe MD. Abdur Rahim Mr. Nomanur Rashid Mr. Anwar Hussain Mr. Yousuf Chowdhury Mr. Shafiqul Islam Mr. Ikram Pasha Md. Abdul Malek MD. Osman Gani
Jamuna Bank Limited
Jamuna Bank Limited


Md. Monir Hussain Miaji Mr. Rajib paul Md. Monirul Islam Mr. Azharul Hoque Md. Saliumullah Khan Md. Mostafa Sarwar
First Executive Officer First Executive Officer Provisionary Officer Provisionary Officer Officer(cash) Officer (Cash)
Balance Sheet Profit And Loss Account Cash flow Statements Liquidity Statements Balance with other Banks and financial institutes: Outside Bangladesh (Nostro Accounts) Highlights of Jamuna Bank Limited FINANCIAL PERFORMANCE AND EVALUATION
Jamuna Bank Limited
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Jamuna Bank Limited

Mission
Balance Sheet As at December 31, 2007
Property and Assets Cash : Cash in hand (Including foreign currency) Balance with Bangladesh Bank and its agent banks (Including foreign currency) Balance with other banks and financial institutions In Bangladesh Outside Bangladesh Money at call on short notice
Note s
4 5
2007 2006 Taka Taka 1,379,174, 1,158,597, 865 832 412,510,308 225,302,379 966,664,557 933,295,453 1,877,145, 2,441,758, 119 464 1,575,483,8 2,171,715,0 12 61 301,661,307 270,043,403
120,00 0,000
555,00 0,000
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Jamuna Bank Limited

Investments : Government Others Loans and Advances : Loans, Cash Credit, Overdrafts, etc. Bills Purchased & discounted Fixed assets including premises, furniture and fixtures Other assets Non-banking assets Total Property & Assets Liabilities & Capital Borrowings from Bangladesh Bank, other banks, financial institutions and agents Deposits and other accounts: Current Accounts and other Accounts Bills Payable Savings Bank Deposits Fixed Deposits Bearer Certificates of Deposit Short Term Deposits Deposit Under Special Scheme Foreign Currency Deposit Other liabilities Jamuna Bank Limited
5,390,032, 2,552,670, 112 092 5,346,422, 2,286,636,1 108 37 43,610, 266,033, 004 955 16,617,450 12,796,630 ,517 ,479 14,565,241, 10,578,094, 601 244 2,052,208,9 2,218,536,2 16 35
10 11
174,401,04 137,358,47 0 9 847,200,40 515,001,21 3 3 -
26,405,404 20,157,016 ,056 ,559
12
12. 00
2,298,93 2,000
618,34 7,500
13
13. 20,924,021 17,284,811 00 ,090 ,793 2,625,670,5 2,088,471,0 94 60 354,436,223 169,798,139 1,407,320,8 1,084,008,7 42 66 13,125,131, 11,804,010, 370 526 833,809,802 636,875,042 2,525,084,5 1,470,287,0 73 87 52,567,686 31,361,173
14
14. 1,525,960, 691,385,76 00 928 0 63
Jamuna Bank Limited

Total Liabilities: Capital / Shareholders' Equity Paid up Capital : (1,22,57,142 Ordinary shares of Taka 100 each) Share Premium Statutory Reserve Revaluation Reserve Surplus in Profit and Loss A/C Total Shareholders' Equity Total Liabilities and Shareholders' Equity 15 15. 00
24,748,914 18,594,545 ,018 ,053
1,225,714,2 1,072,500,0 00 00 85,800, 85,800, 000 000 16 330,676,426 249,667,430 16. 16. 4,907, A 00 671 17. 17 00 9,391,741 154,504,076 1,656,490, 1,562,471, 038 506 26,405,404 20,157,016 ,056 ,559
Off - Balance Sheet items Contingent liabilities: Acceptances & Endorsements Letters of Guarantee Irrevocable Letters of Credit Bills for Collection Other Contingent Liabilities
Notes
2007 Taka 2,208,335,800 1,294,737,513 2,308,180,010 372,928,384 225,078,527 6,409,260,23 4
2006 Taka 2,488,785,858 1,575,593,580 1,679,826,000 679,874,001 150,300,000 6,574,379,439
Total Other Commitments: Documentary credits and short term trade related transactions Forward assets purchased and forward deposits placed Jamuna Bank Limited
64
Jamuna Bank Limited

Undrawn note issuance and revolving underwriting facilities Undrawn formal standby facilities, credit lines and other commitm Total : Total Off-Balance Sheet items 6,409,260,2 including contingent liabilities 34 6,574,379,439 Letters of Note : A guarantee Money for which the Bank is contingently liable in respect of guarantee given favouring: Directors Government Bank and other financial institutions 1,294,737,51 Others 3 1,575,593,580 1,294,737,5 13 1,575,593,580
Jamuna Bank Limited
65
Jamuna Bank Limited

Profit and Loss Account For the year ended December 31, 2007 Particulars Interest income & Profit on investment Less: Interest paid on deposits and borrowings, etc. Net interest income Investment income Commission, exchange and brokerage Other operating income Total operating income (A) Less: operating Expenditure: Salary and allowances Rent, taxes, insurance, electricity, etc. Legal expenses Postage, stamps, telecommunication, etc. Stationery, Printings, Advertisements, etc. Directors' fees & other expenses Auditors' fees Managing Director's salary & allowances Depreciation and repairs and maintenance of bank's assets Other expenses Total operating expenses (B) Profit/(loss) before provisions (C=A-B) Provision for loans, advances (including off balance sheet expenses) Provision for other assets Total Provision (D) Total profit before taxes (C-D) Provision for taxation for the year Current tax Deferred tax Net profit after taxation Jamuna Bank Limited 18 31 Notes 19 20 21 22 23 2007 Taka 2,230,265,913 1,774,389,203 455,876,710 474,482,522 320,726,444 77,519,246 1,328,604,922 232,631,098 62,905,322 1,541,252 28,712,320 26,066,423 4,157,603 100,000 6,271,833 30,248,608 111,761,993 504,396,452 824,208,470 419,163,491 419,163,491 405,044,979 315,934,118 311,747,167 4,186,951 89,110,861 2006 Taka 2,095,512,096 1,606,879,773 488,632,323 255,662,108 328,765,771 69,961,320 1,143,021,522 188,801,858 47,755,817 3,046,438 25,755,108 35,738,634 2,716,920 525,000 2,805,000 27,208,114 107,345,721 441,698,610 701,322,912 201,154,530 193,485 201,348,015 499,974,897 246,574,000 246,574,000 253,400,897 66
24 25 26 27 28 28 24.A 29 30
14 14
Jamuna Bank Limited

Retained surplus brought forward from previous year Retained Surplus Before Appropriation Appropriations: Statutory Reserve (20% on pre-tax profit) Proposed Dividend as Bonus share Retained Surplus Earnings Per Share (EPS)
1,289,876 90,400,737 81,008,996 9,391,741 8.04
1,098,158 254,499,055 99,994,979 154,504,076 31.94
32 17 33
Cash and Flow Stetements For the year ended December 31, 2008 Particulars A) Cash flows from operating activities Interest receipts Interest payments Fee and commission receipts Payments to employees Payments to suppliers Income taxes paid Receipts from other operating activities Payments to other operating activities Operating profit before changes in operating assets and liabilities (Note-A)(i) Jamuna Bank Limited 34 35 2,230,265,913 (1,774,389,203) 320,726,444 (238,902,931) (64,939,375) (195,926,625) 77,519,246 (177,508,711) 176,844,758 2,095,512,09 6 (1,606,879,7 73) 328,765,771 (191,606,858 ) (70,972,775) (295,471,799 ) 69,961,320 (160,441,352 ) 168,866,63 0 Notes 2007 Taka 2006 Taka
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Jamuna Bank Limited

Increase /Decrease in operating assets & liabilities Loans and advances to the customers Other assets Deposit from other bankss Deposit from customers Interest payable to the customers & banks Other current liabilities 36 (3,820,820,038) (136,272,565) 605,818,146 3,017,376,419 16,014,732 104,385,229 (213,498,077) (36,653,319) (1,784,795,9 24) (100,769,158 ) (2,537,541,1 12) 5,210,054,71 1 158,168,879 (216,457,805 ) 728,659,59 1 897,526,22 1
Cash received from operating assets and liabilities (Note-A) (ii) Net cash from operating activities (A=i+ii) B) Cash flows from investing activities Income received from investments Proceeds from sale of securities (gain) Payments for purchase of securities Purchase of property, plant & equipment Adjustment for property, plant & equipment Net cash from investing activities C) Cash flows from financing activities Payments in borrowings Received from Initial Public Offering (IPO) Cash Dividend Net cash from financing activities Net increase/ decrease in cash and D) cash equivalent (A+B+C) Cash and cash equivalents at E) beginning year F) Cash and cash equivalents at end of the period (D+E) (Note - B)
355,415,051 119,067,471 222,423,951 (65,180,367) 5,092,371 636,818,477
237,426,022 18,236,086 266,102,599 (50,312,683) 740,715 472,192,73 9
(249,452,500 1,680,584,500 ) 514,800,000 (12,870, 000) 1,680,584,50 252,47 0 7,500 2,280,749,65 8 6,441,992,43 3 8,722,742,09 2 1,622,19 6,460 4,819,79 5,973 6,441,99 2,433 68
Jamuna Bank Limited
Jamuna Bank Limited

RECONCILIATION NOTE : A Profit before tax Less : Investment income 2007 Taka 405,044,979 2006 Taka
499,974,897 (255,662,108 (474,482,522) ) 244,312,78 (69,437,543) 9 23,045,435 419,163,491 18,677,625
Add :
Depreciation Provision for loan, advances and other assets Advance income tax
Less :
201,348,015 (295,471,799 (195,926,625) ) 168,866,63 0
176,844,758 NOTE : B Closing cash & cash equivalent Cash in hand (including foreign currency) Balance with Bangladesh Bank and its agent banks Balance with other bank's and financial institutions Money at call on short notice Prize bond in hand Government securities
225,302,379 933,295,453 2,441,758,46 1,877,145,119 4 120,000,000 555,000,000 371,700 983,100 2,285,653,03 5,346,050,408 7 6,441,992,4 8,722,742,092 33
412,510,308 966,664,557
Liquidity Statement As at December 31, 2007 Jamuna Bank Limited 69
Jamuna Bank Limited

Particulars Assets :
Upto 1 month
1-3 months
3 - 12 months
More than 1 - 5 years 5 years
Total 1,379,174 ,865
1,379,1 Cash in hand 74,865 Balance with other banks & financial 357,1 300,000, 1,220,000, institutions 45,119 000 000 Money at call on 120,0 short notice 00,000 2,272,3 Investment 71,700 Loans & 360,9 3,457,399, 8,041,872, Advances 33,476 144 696 Fixed assets including premises, furniture and fixtures 71,4 235,187, 6,488, Other Assets 98,729 505 440 Non-banking assets 4,561, 3,992,586 9,268,36 Total Assets 123,889 ,649 1,136 Liabilities : Borrowings from Bangladesh Bank, other banks, financial institutions and 2,011,9 287,000, agents 32,000 000 Deposits and 3,159,3 4,807,445, 5,191,704, other accounts 33,378 113 702 14,6 199,821, Other liabilities 86,021 996 Total Liabilities Net Liquidity
1,877,145 ,119 120,000 ,000 488,410, 2,629, 5,390,032 004 250,408 ,112 4,150,367, 606, 16,617,450 185 878,016 ,517 -
162, 174,401 906 047,134 ,040 534,025, 847,200 729 ,403 5,185,156 3,398 26,405,40 ,824 ,175,558 4,056 -
12,353,
2,298,932 ,000 5,811,861, 1,953, 20,924,021 601 676,296 ,090 571,276, 740, 1,525,960 311 176,600 ,928
5,185, 4,807,445 5,678,52 6,383,137 2,693 24,748,91 951,399 ,113 6,698 ,912 ,852,896 4,018 (624, (814,858 3,589,83 (1,197,981 704, 1,656,49 827,510) ,464) 4,438 ,088) 322,662 0,038
Jamuna Bank Limited
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Jamuna Bank Limited

Balance with other Banks and financial institutes: Outside Bangladesh (Nostro Accounts)
As on December 31, 2007 Sl No. Name of the Foreign Bank American Express Bank, Kolkata, India Standard Chartered Bank, Kilkata, India Standard Chartered Bank,Srilanka Nepal Bangladesh Bank Ltd, Nepal Standard Chartered Bank, Karachi, Pakistan UTI Bank Ltd, India Bank of Bhutan, Bhutan ICICI Bank Ltd, India Mashreq Bank Psc, Mumbai, India Habib Bank AD, Zurich, Switzerland Hypovereins Bank AG, Germany Standard Chartered Bank, London, UK American Express Bank, Tokyo, Japan Standard Chartered Bank , NY, USA Mashreq Bank Psc, NY, USA CITI NA, NY, USA Habib American Bank, NY, USA American Express Bank, NY, USA HSBC Bank, NY, USA Currency Name Amount in Foreign Currency 35,727.26 ACUD 106,047.93 ACUD 2,420.00 ACUD ACUD ACUD ACUD ACUD ACUD ACUD CHF EUR GBP YEN USD USD USD USD USD USD 2,750,493.25 141,524.65 310,358.75 60,874.77 57,643.35 Total 68.7850 68.7850 68.7850 68.7850 68.7850 1,361,945.00 362,097.53 0.6153 68.7850 837,936.66 56,155.78 42,519.61 101.0337 5,673,623.42 137.0702 5,828,169.32 185.00 4,944.30 1,548.41 4,234.32 102,667.29 262,963.85 2,715.88 68.7850 68.7850 68.7850 68.7850 68.7850 68.7850 60.9651 12,725.23 340,093.68 106,507.38 291,257.70 7,061,969.54 18,087,968.42 165,573.76 68.7850 166,459.70 68.7850 7,294,506.87 Conversio Amount in n Rate BD Taka 68.7850 2,457,499.58
As on December 31, 2006 Amount in Foreign Currency 192,806.93 144,697.96 32,530.00 185.00 68,605.23 1,548.41 17,834.32 235,963.88 4,893.00 13,713.58 103,976.58 22,796.71 669,625.00 Conversion Rate 69.9375 69.9375 69.9375 69.9375 69.9375 69.9375 69.9375 69.9375 69.9375 57.3494 92.1357 136.9637 0.5916 69.9375 69.9375 69.9375 69.9375 69.9375 69.9375 Total Amount in BD Taka 13,484,434.6 7 10,119,813.5 8 2,275,066.88 12,938.44 4,798,078.27 108,291.92 1,247,287.76 16,502,723.8 6 342,204.19 786,465.58 9,579,854.98 3,122,321.75 396,150.15 10,445,780.3 8 60,623,247.5 3 13,977,554.8 9 18,837,069.0 6 70,429,270.4 3 32,954,748.6 2 270,043,40 2.93
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
24,906,878.60 149,358.79 189,195,068.7 866,820.34 0 9,734,773.05 199,857.80
21,348,026.62 269,341.47 4,187,271.05 1,007,031.57 3,964,997.83 301,661,307 .11 471,202.84
Jamuna Bank Limited
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Jamuna Bank Limited

As on December 31, 2007 Currency Amount % USD GBP EURO JPY CHF Total 289,156,003.94 5,828,169.32 5,673,623.42 837,936.66 165,573.76 301,661,307. 10 95.85 1.93 1.88 0.28 0.05 100 As on December 31, 2006 Currency Amount % 256,158,510.4 USD 5 94.86 GBP 3,122,321.75 1.16 EURO 9,579,954.98 3.55 JPY 396,150.15 0.15 CHF 786,465.58 0.29 270,043,402. Total 93 100.00
HIGHLIGHTS OF JAMUNA BANK LIMITED Amount in Taka (Except Ratio)

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Particulars Paid up Capital Total Capital Capital Surplus Total Assets Total Deposits Total Loans and Advances Total Contingent Liabilities and Commitments Advance Deposit Ratio Percentage of Classified Loans against total Loans Profit after Taxation Amount classified Loans Provision kept against Classified Loans Provision surplus/deficit Cost of fund Interest earning assets Non interest earning assets Return on assets Return on investments Income from investment Earning per share(Tk.) Net income per share Tk. Price Earning Ratio (Times) Net Asset value (Tk.) 2007 1,225,714,200 1,872,719,99 364,612,891 26,405,404,056 20,924,021,090 16,617,450,517 6,409,260,234 79.42% 5.06% 89,110,861 840,339,000 518,852,491 12.26% 24,004,627,748 2,400,776,308 0.34% 8.80% 474,482,522 7.27 8.04 53.61 135.14 2006 1,072,500,000 1,701,825,130 666,269,650 20,157,016,559 17,284,811,793 12,796,630,479 6,574,379,439 74.03% 5.03% 253,400,897 643,365,000 181,466,000 12.18% 18,346,059,035 1,810,957,524 1.26% 10.02% 255,662,108 23.63 31.94 12.26 145.68
Jamuna Bank Limited
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Jamuna Bank Limited

Ratio Analysis Most of the Banks 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
1. Gross Margin(%)=
2006 1.11%
Gross Profit ------------------------ X 100 = Sales(Total Loans)
7.9%
Jamuna Bank Limited
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Jamuna Bank Limited

Operating Profit 2. Operating Margin(%)= -------------------------- X 100 = Sales 3. Net Margin(%) Net Profit = -------------------------- X 100 = Sales
4.95%
5.48%
2.43%
3.90%
Net Profit after tax 4. Return on Assets(%)= ---------------------------- X 100 = Equity
0.34%
1.26%
2007 Net Profit after Tax 5. Earning Per Share= ---------------------------- X 100 =
Number of Shares Outstanding
2006 23.63
7.27
Liquidity Ratio: Current Assets 1. Current Ratio= ----------------------------Current Liabilities = 1.067 1.084
Leverage Ratio: Total Debt 1. Debt Ratio= -----------------------------Total Assets EBIT 2. Interest Coverage Ratio= ------------------Total Interest
Jamuna Bank Limited
X 100 =
79%
85%
0.18Times
0.23Times
74
Jamuna Bank Limited

Jamuna Bank Limited
75
Jamuna Bank Limited

Swot analysis of JBL Problems of the bank OVERALL EVALUATION OF THE BANK Recommendation for the bank Conclusion Reference
Mission
Analysis of the Study

SWOT analysis of Jamuna Bank Limited:
Jamuna Bank Limited

Strength:

Experience Top Management. Satisfactory Capital base. Low inflation in loan exposure. Prospective IT infrastructure. Sufficient and experience manpower. Strong and qualified manpower. 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 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.
Weakness:

development.

PROBLEMS OF THE BANK High cost of fund:
Jamuna Bank Limited
77
Jamuna Bank Limited

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 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 banks 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 Banks 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 banks 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
Jamuna Bank Limited
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Jamuna Bank Limited

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 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.
Jamuna Bank Limited
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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 competitors 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. 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 banks 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/companys 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.
Jamuna Bank Limited
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Jamuna Bank Limited

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 its 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 todays 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. 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 its 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.
Jamuna Bank Limited

REFERENCE
Annual Report of Jamuna Bank Limited. Personal Desk in Khatungonj Branch. Different Journal, Newspapers and Publications. 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
Jamuna Bank Limited
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your partner for growth

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Background of the study

Jamuna Bank Limited

Jamuna Bank Limited

Objectives of the Study

The specific objective:

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

A BRIEF OVERVIEW OF Introduction J of JBL Objectives & strategies AMUNA BANK

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Performance of the Bank

Jamuna Bank Limited

Jamuna Bank Limited

past years are as follows:

Jamuna Bank Limited

Jamuna Bank Limited

Number of Employee 1 1 120 398 80 600

Jamuna Bank Limited

Jamuna Bank Limited

ORGANOGRAM OF JBL (Sources: Company Profile)

Senior Vice President Vice President

Executive Officer First Executive Officer Provisionary Officer Officer

Jamuna Bank Limited

Jamuna Bank Limited

BRIEF OVERVIEW OF KTG BRANCH

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

MODERN EQUIPMENT OF THE BANK

Jamuna Bank Limited

Jamuna Bank Limited

Organogram of Jamuna Bank (Khatunganj Branch)

Junior Assistant Vice President

Senior Executive officer

First Executive Officer

First Executive Officer

First Executive Officer

First Executive Officer

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited

Jamuna Bank Limited