Chapter One:

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In Department of Tourism and Hospitality Management, the University of Dhaka, BBA
program is comprises of 8 semesters and as a reuirement for the fulfillment of our BBA
program !e have to perform an internship program" As student of BBA I have gathered
enough theoretical kno!ledge, and no! I !ant to put my potentiality in the practical
field" #onali Bank $td" has given me the opportunity to commence my internship there
from the %
nd
&e'ruary %()* to the %(
th
March %()*"
During the internship program, students are reuired to prepare a report on the
organi+ation !here they have 'een attached" #onali Bank $td" and all the officials al!ays
encourage and !elcome the students for their internship program" I have tried my 'est to
properly apply my potentials and theoretical kno!ledge to make the report relia'le and
information !orthy" My honest effort !ill 'e regarded as successful if this dissertation
fulfills the o',ective of the program"
1.2 TITLE OF THE STUDY
-.emittance management system/ A #tudy on #onali 'ank $td"0
1.3 OBECTI!ES OF THE STUDY
The o',ectives of the study can 'e categori+ed into to different heads" Those are 'riefly
discussed 'elo!/
1.3.1 Broad objectives:
Broad o',ective of this report is to meet the partial reuirements for the fulfillment of
BBA program"
)
1.3.2 Specific objectives:
In specific o',ective I have to prepare a sound report that must 'e relia'le and dependa'le
for the Bank1s officials"
This study is intended for providing me invalua'le practical kno!ledge a'out 'anking
operation system in Bangladesh" The prime o',ective of this report is to achieve practical
e2posure to organi+ational environment as !ell as to understand the system and
methodology adopted in conducting day to day 'anking 'y #onali Bank $td "
The specific o',ectives to help in e2plaining the 'road o',ectives are as follo!s3
To gain practical kno!ledge 'y !orking in different desks of 4orporate Branch of
#onali Bank limited"
To revie! the consumer 'anking services and operating system of #onali Bank
$td"
To accomplish the partial reuisite of BBA 5rogram and to achieve of good
,udgment !ith theoretical 'ase"
To have a revelation on the 'anking environment of Bangladesh"
To achieve overall understanding of #onali Bank $td
To evaluate the factors affecting performance of the 'ank"
To suggest the 'etter !ays of enhancing the performance of the 'ank"
To apply theoretical kno!ledge in the practical field"
1." SCO#E OF THE STUDY
This report has 'een prepared through e2tensive discussion !ith 'ank employees and
!ith the clients" 6hile preparing this report, I had a great opportunity to have an in depth
kno!ledge of all the 'anking activities practiced 'y the #onali Bank limited" It also
helped me to acuire a fast hand perspective of a leading commercial 'ank in
Bangladesh"
1.$ RATIONALE OF THE RE#ORT
7no!ledge and learning 'ecome perfect !hen it is associated !ith theory and practice"
Theoretical kno!ledge gets its perfection !ith practical application" As our educational
system predominantly te2t 'ased, inclusion practical orientation program, as an academic
%
component is as e2ception to the norm" As the parties8 educational institution and the
organi+ation su'stantially 'enefit from such a program, it seems a -!in/!in situation0" It
esta'lishes contracts and net!orking contracts" 4ontracts may help to get a ,o'" That is,
students can train and prepare themselves for the ,o' market" A poor country like
Bangladesh has an over!helming num'er of unemployed educated graduates" As they
have no internship e2perience they have not 'een a'le to gain normal professional
e2perience of esta'lish net!orking system, !hich is important in getting a ,o'" That1s
!hy practical orientation is a positive development in professional area" .ecogni+ing the
importance of practical e2perience, Department of A9I#, has introduced a practical
e2posure as a part of the curriculum of BBA program" In such state of affairs the present
aiming at analy+ing the e2perience of practical orientation related to an appraisal of
#onali 'ank $td at #hilpa Bha'an corporate 'ranch"
1.% &ETHODOLOGY OF THE STUDY
4orrect and smooth completion of research !ork reuires adherence to some rules and
methodologies" .ules !ere follo!ed to ease the data collection procedure" Accuracy of
study depends on the information and data analysis"
1.' SOURCES OF DATA
#r()ar* S+,r-e.
1. 5ersonal Intervie! : &ace/to/face conversation and in depth intervie! !ith
the respective officers of the 'ranch"
2. #urvey/ 4ustomer survey 'ased on appropriate uestionnaire"
3. 5ersonal o'servation : ;'serving the procedure of 'anking activities follo!ed
'y each department"
". 5ractical !ork e2posures on different areas of the 'ranch"
$. Informal conversation !ith the clients or customers"
%. .elevant documents related to the study as provided 'y the officers"
Se-+n/ar* S+,r-e.
Annual report of #onali Bank $td"
5eriodicals 5u'lished 'y Bangladesh Bank"
Different pu'lications regarding Banking functions"
<
Internet !as also used as a theoretical source of information"
6e'sites and =e!sletters are also used as ma,or sources"
#r(nte/ &ater(a0.: This study is mostly dependent on the printed materials !hich may
include the ne!spapers, maga+ines, ,ournals, directories, annual reports, Bangladesh
'ank pu'lications, #onali Bank $td Annual .eport etc"
Internet: Internet !as another ma,or secondary source that !e have used to collect
related information to conduct the study"
Ne1.paper.: 6e have collected some information from the various dailies and 'usiness
articles"
1.2 LI&ITATIONS OF THE STUDY
This Internship .eport is my first assignment outside our course curriculum in the
practical life" I am the student of -Department of Accounting and information systems0,
,ust have completed my BBA 5rogram" After gathering the institutional e2perience,
practical performance in the formal stages 'ecomes difficult" #o in preparing this report,
lack of proper kno!ledge greatly influenced me in this performance"
Besides a'ove, I had to face some other limitations" The.e are a. 3+00+1.:
$earning all the 'anking functions !ithin ,ust 45 days !as really tough"
Another limitation of this report is Bank1s policy of not disclosing some data and
information for o'vious reason, !hich could 'e very much useful"
The Bank authority !as very 'usy, so they could not give me enough time for discussion
a'out various pro'lems"
This study completely depended on official records and annual reports"
To prepare an analytical report need financial assistance"
The financial assistance provided 'y the department is insufficient" In perspective of lack
sufficient money, various types of analysis did not 'ecome possi'le"
$ack of availa'ility of data
Improper com'ination among various departments
Up/to/date information !ere not availa'le
#ufficient records, pu'lications, facts and figures are not availa'le" These constraints
narro!ed the scope of the real analysis"
*
Chapter T1+
AN O!ER!IE4 OF SONALI BANK LTD
2.1 ESTABLISH&ENT
#onali Bank $td, the largest commercial 'ank in the country, !as esta'lished under
Ban50a/e.h Banks 6Nat(+na0(7at(+n8 Or/er 19'2 6#re.(/en-* Or/er N+. 2% +3 19'28.
By taking +:er ;ran-he. +3 former Nat(+na0 Ban< +3 #a<(.tan= Ban< +3 Baha1a0p,r
L()(te/ an/ #re)(er Ban< Lt/. !ere t!o private 'anks performing class 'anking over
the century in that period and =ational Bank of 5akistan !as government supported 'ank
!hich !as esta'lished to finance the >ute #ector in ?ast 5akistan in the early period of
5akistan" After the 'irth of Bangladesh on
16
th Decem'er )@A), ne!ly formed #onali
Bank for mass 'anking got special facilities from the government to !ork on 'ehalf of
Bangladesh Bank in those areas !here Bangladesh Bank is not availa'le" 6ith the
increase of responsi'ility and 'y virtue of performance !ithin a fe! years, it 'ecomes the
largest commercial Bank of the country !ith ))8< 'ranches up to no!"
2.2 OBECTI!ES
The main o',ective of the Bank is to provide all of 'anking services at the doorsteps of
the people" The Bank also participates in various #ocial and Development programs and
also takes part in implementation of various policies and promises made 'y the
Bovernment"
#onali Bank has the follo!ing specific o',ectives3
To collect scattered savings of the people"
To maintain a satisfactory deposit mi2"
To e2tend credit facilities to agriculture, rural development, commercial and
industrial sectors"
To increase loan portfolio diversification and geographical coverage"
To develop human resources through continuous training"
To provide ?2port &inance
To provide Import &inance
C
2.3 &ANAGE&ENT
The management of the 'ank is vested on a Board of Directors, su',ect to overall
supervision and directions on policy matters 'y the 'oard !hich is constituted in terms of
Bangladesh Bank D=ationali+ationE ;rder )@A% D&igure/%")E" Board of Directors,
constituted 'y seven mem'ers, has authority to organi+e, operate and manage its affairs
on commercial consideration !ithin the Board policy of government"
There are directors appointed 'y the government" ;thers mem'ers of the Board including
MD are also government appointed out of that at least three have the e2perience in the
field of &inance, Banking, Trade, 4ommerce, Industry and Agriculture" The managing
director is the 4hief ?2ecutive of Bank" He e2ecutes all the activities under the direction
of Board"
&igure/)3 Management Hierarchy
F
Dep,t* &ana5(n5 D(re-t+r.

&ana5(n5 D(re-t+r
Genera0 &ana5er
Dep,t* Genera0 &ana5er
A..(.tant Genera0 &ana5er
6AG&8
Sen(+r #r(n-(pa0 O33(-er
#r(n-(pa0 O33(-er
Sen(+r O33(-er
O33(-er
2." BROAD CATEGORIES OF LOANS IN SONALI BANK LI&ITED
A" .ural 4redit
B" Micro 4redit
4" Industrial 4redit
D" House Building loan
?" 4onsumer loan
2.4.1. Rural Credit:
.ural 4redit Division controls and monitors this type of loan" Benerally this type of loan
is dis'ursed in the rural areas" It can 'e classified into si2 types/
DaE #A45/#pecial Agriculture 4redit 5rogram3 It starts in )@AA" This credit program is
especially for Agriculture crops" Tk")(( crore !as sanctioned for the program last year"
Its main o',ective is to finance in the rural economy"
D'E 5ond fisheries3 Its main o',ective is to encourage the fisheries sector and thus to solve
the unemployment pro'lem" Duration of the credit is three years"
DcE &arming and off farming loan3
This credit program is for agro 'ased or non agro 'ased product"
DdE #pecial Investment #cheme3 This credit program !as started in )@@<" Its main
o',ective is to reduce the import of milk" Tk"*((/C(( crore !as reuired to import milk"
But after starting the program the amount go do!n in Tk" %(( crore"
DeE #ocial a forestation credit program3 Its main o',ective is to greening the country
involving the rural people and thus to improve the ecological condition of the country
along !ith the improvement of the economic condition of the people"
DfE Agri farm credit program3 Its main o',ective is to 'uild up a large comprehensive
farm and thus to encourage the agriculture sector of the country and to solve the
unemployment pro'lem"
2.4.2. Micro Credit:
A" Bovt" patroni+ed =B; B.DB DBangladesh .ural Development BoardE implement the
micro credit program in three sectors" #onali Bank $td" sanctions loan in the name of
B.DB and B.DB dis'urse the loan through T44A or U44A D Gillage level samityE
A
DaE 4rop loan
D'E Integrated 6omen Development 5rogram
DcE 5ra!n 4ultivation Dgenerally in 7hulna and #atkhira regionE
B" Agriculture ?uipment $oan
4" #anirvar3 This credit program started in the village level named -Dheki .in0"But the
program failed due to corruption" $oan sanctioned in the mem'er level"
D" 4redit program through BA.D
?" 4redit program through .DA D4oncentrated in Bogra districtE
&" #asso Budam Bi+
B" 4redit for disa'led people
H" 4UM?D D4redit for Ur'an 6omen ?ntrepreneur DevelopmentE
I" Unmash D4oncentrated in Moulovi'a+ar districtE
>" Boat &arming
7" #mall farming
$" .ural #mall Business
M" #alt cultivation
=" 5overty Alleviation
;" =B; $inkage $oan
2.4.3. Industrial Credit:
Due to the failure of B#B and B#.# #onali Bank $td" started to play role for
industriali+ation" In )@AA #B$ started different small loan pro,ects" #B$ started financing
the small industries and started to get success" After getting the #B$ started financing all
the small or 'ig industries" But !ith the passage of time credit recovery is getting
!orsening" At present defaulter case is <%/*(H and the main reason is political influence"
2.4.4. House buildin loan:
Housing loan for general people3
House Building &inance 4orporation DHB&4E is the main institution to meet the
reuirement of loans in this field 'ut #onali Bank $td" also supplement to this sector"
Advances for construction of residential houses against real estate1s as primary securities
8
as allo!ed 'y 'anks up to T7" C"(( lacs per party Dincluding cost of landE minus any loan
taken from HB&4 for these purpose" #onali Bank $td" may grant advances for
construction of commercial 'uilding also against real states" The rate of interest for all
such loans is )FH per annum and ma2imum repayment period is %( years" At present
housing loan for general people is stopped due to 'ad e2periences of credit recovery D4.E
Housin loan for SB! staff
It is a great advantage for #B$ staff getting housing loan at a lo!er interest rate" It is no!
only CH" The staffs repay the loans !ith interest at a monthly installment" &or this cheue
'ook of each 'orro!er is maintained" A certain installment is cut from the salary each
month"
2.4.". Consu#er loan:
4onsumer loan is provided to the middle income people to make them a'le to purchase
different furniture, motor cycle, 'icycle etc" Main copy of indem Dname of furniture, price
etc"E, #alary statement, no claim report etc" are reuired" 4heue is maintained and a
certain installment DTk"<<A(E is cut from the salary" Ma2" ) lakh Tk" is given in this
purpose" Interest rate is )*H" 5ayment period is < years" Besides there are 'icycle loans
and motor cycle loans" In this copy of license is taken
4ore Business of #onali Bank $td3
@
4orporate
Banking
5ro,ect
&inance
#M? &inance
.emittance
$ease &inance
4onsumer
4redit
Trade &inance
$oan #yndication
&oreign ?2change
Dealing
International Trade
=B;/$inkage $oan
4onsumer 4redit
Investment
Bovernment Treasury
&unction
Money Market ;peration
.ural and Micro credit
4apital Market ;peration
#pecial #mall $oan
;ther BusinessI#ervices3
2.$ LIST OF BOARD OF DIRECTORS
Ta'le/) $I#T ;& B;A.D ;& DI.?4T;.#
Name Designation
Dr. A.H.M. Habibur Rahman 4hairman
Ranjit Kumar Chakraborty Director
A.S.M Nayeem, FCA, FCCA
Director
Md. Nazibar Rahman
Director
Shekhar Dutta Director
Mrs. Selima Ahmad Director
Md. Mahboob Hossain Director
Md. Shaheb Ali Mridha Director
Kazi ari!ul "slam Director
Dr. #aid $akht Director
A.K.M Rezaur Rahman Director
%radi& Kumar Dutta
Managing Director
9 4?;
Source: The official website of SBL- http://www.sonalibank.com.bd/
)(
Bovernment Treasury Bonds
$ocker #ervice
A"T"M" 4ard
Utility Bills 4ollection
Ancillary #ervices
Merchant Banking
2.% &ISSION OF SONALI BANK LI&ITED
To provide all kind types of 'anking service at the doorsteps of the people"
To esta'lish a country!ide information net!ork system to facilitate monitoring
and to improve the uality of service of the 'ank"
To provide general advances in different sectors to up/gearing the economic
activities"
To promote the economic development of the country as !ell as increase per
capital income"
To provide term loan to esta'lish ne! industries to create opportunities for ne!
employment"
2.' CUSTO&ER SER!ICE
To ensure ualified customer service #onali Bank has started in addition to
computeri+ation corporate client service and one stop service" To facilitate the foreign
e2change activities #onali Bank has launched #6I&T D#ociety for 6orld!ide Inter 'ank
&inance and TelecommunicationE system in its )% 'ranches" The 'ank has launched
6e'site, .euter service, Internet service, and .eady cash service" The 'ank has taken a
plan to launch shared ATM system in various important places" Already, it has given !ork
order for this"
2.2 CO&#UTERI>ATION
#onali 'ank $td starts its computeri+ation process at Decem'er, )@8@" After that it
e2pands its computeri+ation process 'y esta'lishing .I#? #ystem D.# )F(((E ;#I%,
$A= etc" Up to this time ))< 'ranches are under computeri+ed system" Besides this J;ne
#top1 is 'eing given in its "$ 'ranches" Moreover,
&oreign e2change 'usiness and standard of customer services is 'eing increased
and speed up of information flo! 'y using the computeri+ation system $A=
D$ocal Area =et!orkE and 6A= D6ide Area =et!orkE"
))
It has esta'lished A su'sidiary companies in United #tates named #onali
?2change 4ompany Incorporated D#?4IE and C offices of #onali Bank, U7 $td"
esta'lish
!ith *@H share !ith govt" in U7 so that the =on/.esident Bangladeshi can send their
money to Bangladesh through a valid channel as fast as possi'le"
.ecently #?4I esta'lished a 6e' 'ased .emittance #oft!are in United #tates"
#onali Bank $td 6age ?arners 4orporate Branch esta'lished electronic link !ith
its 'ranch in Middle ?ast Branch through !hich remittance is to 'e sent" Besides
this C electronic link is in implementation process in ;man, Katar and Bahrain"
I&.M# DInstant &inancial .econciliation and Messaging #ystemE has ena'led the 'ank to
remit fund 'y DD, TT, Inter 'ranch De'itI4redit advice" This has 'een started as an
e2perimental 'ut this system !ill 'e started among <(( 'ranches soon"
2.9 GO!ERN&ENT INTER!ENTION
&inancial services have traditional 'een the su',ect of close government scrutiny and it is
to 'e e2pected that rates, interest rates, and terms of credit should 'e closely monitored in
the pu'lic interest" In the recent years, ho!ever, government have tried to use interest
rates, credit regulations and informal controls on 'anks as a means of managing the
supply of money in the economy in an effort to increase or reduce consumer spending
and to hold 'ack or promote investment 'y 'usiness" During the )@AF to no!, the effect
of these policies has 'een to add a ne! dimension of risk and uncertainty to financial
markets !hich !ere already fluctuation !ildly 'ecause of the oil crisis, the commodity
'oom, increasing inflation and controlled e2change rates"
Ho!ever, net income of local 'anks is drastically reduced, as the reuired to maintain
very large provisions for 'ad de'ts and interest suspense accounts"
)%
Chapter Three
RE&ITTANCE &ANAGE&ENT SYSTE& 6R&S8
3.1 INTRODUCTION
.emittance Management #ystem is a customi+ed process of #onali Bank $td" This is
totally 'ank1s o!n system !here foreign remittances !ere processed" Basically 'ank
collects the remittance from the *) e2change houses of different foreign countries" These
e2change houses collect money from the customers and then send information a'out the
customers to the 'ank" There are t!o processes for sending the information to the 'ank"
?&T D?lectronic &und TransferE
#6I&T D#ociety for !orld!ide inter 'ank finance 9 telecommunicationE
After receiving this data 'ank process this data !ith the help of customi+ed soft!are
!hich is prepared for process this data" This soft!are is called .emittance Management
#ystem D.M#E soft!are" #ome high uality, energetic, IT specialist and dynamic young
group are engage to ensure the faster and s!ift service to the customers"
The e2change house collect information from the customer1s regarding their /
5;= D5ayment ;rder =oE =o"
Date
Beneficiary =ame
Account =ame
Amount
.emitter =ame
Beneficiary Branch =ame etc"
)<
The 'ank has installed .M# at 6age ?arner1s 4orporate Branch D6?4BE, Dhaka" The
incoming remittances are do!nloaded and processed at 6?4B using .M#"
.M# captures various structured remittances from various e2change company and
converts it into a uniue structure and imposes a security" After capturing the remittances
.M# receives an administrative pass!ord, a part/) test key holder pass!ord, a part/% test
key holder pass!ord and t!o signatures activation pass!ord daily" In .M# there are %(
DT!entyE parameteri+ed signature" 6e can change the signatory dynamically per day"
.M# has automated secured test key module" #o .M# generates test key automatically
for every amount" Then !e accumulate the T.A data of various e2change company and
impose three types of security and validate using .M# Data 4enter for live outlets"
The .M# module of outlets receives incoming remittance data packet 9 validate it" After
validation the T.A prints automatically !ith t!o signatures and a test num'er" An
authori+ed signatory of outlets sign on T.A as third signature and distri'ute it" The T.A
of distance location is distri'uted over phone initially and put a seal on T.A as - credit
over phone0"
The outlet collects the credit date of T.A from 'ranches and sends a feed'ack file to
6?4B" This feed'ack is used for .econciliation and overseas e2change companyIBank"
3.2 RE&ITTANCE

.emittance means transfer of money from one to
another" Bank provides this facility to their customer
as a part of essential services provided to them" The
transfer of money can take place either !ithin the
country or from one country to another"
The remittance of freely converti'le foreign
currencies !hich !e are receiving from a'road against !hich the Authori+ed Dealers
making payment in local currency to the 'eneficiaries may 'e termed as &oreign In!ard
)*
.emittance" The transfer of money can take place either !ithin the country or from one
country to another"
L &oreign .emittance"
L $ocal .emittance"
3.3 FOREIGN RE&ITTANCE
Intr+/,-t(+n:
&oreign remittance, in simple terms, means money remitted in foreign currency" More
precisely, it is termed as remittances in foreign currency that are received in 9 made out
a'road" 4onceptual Issues International remittances are defined as the portion of migrant
!orkers1 earnings sent 'ack from the country of employment to the country of origin
DI$;, %(((E" .emittance can also 'e sent in kind" Transfers that take place in kind is uite
difficult to measure" .emittances can 'e individual and it can also 'e collective" 6hen
individuals send remittance to hisIher household or kith and kin that can 'e termed as
individual remittance" 6hen a group of migrants, their associations or professional 'odies
mo'ili+e resource together and send for collective or community program that can 'e
termed as collective remittance" Individual remittances are mostly geared to!ards the
family !hereas collective remittances are generally used for community development"
Transfer of remittances takes place through different methods" *FH of the total volume of
remittance has 'een channeled through official sources"
&+ne* Tran.3er +perat(n5 Net1+r<
&igure/%3 Money Transfer operating =et!ork
)C
#ource3 !!!"'angladesh/'ank"org
De3(n(t(+n
6hen transfer of money occurs from any foreign country to the home country it is called
foreign remittance" The economy of Bangladesh is mainly depended on this sector" A lot
of people staying outside the country send money to their relatives and family" Both the
receiver and sender !ant this money to 'e transferred" safely and rapidly" Bank provides
these services to them in a secured !ay"
That means, The system of transmitting or sending money from one 'ranch to another
'ranch of the same 'ank or from one 'ank to another 'ank !ithin a country or outside the
country is kno!n as remittance" It is one of the important functional areas of a 'ank" A
'ank can earn handsome fees as commission from the dealings of money remittance"
During my internship program I have gathered practical e2perience a'out ho! money is
remitted from one 'ranch to another 'ranch of a 'ank or from one 'ank to another 'ank"
3." TY#ES
T!o types of .emittance3/
Inland .emittance"
&oreign .emittance"
In0an/ Re)(ttan-e
The remittance of freely converti'le foreign currencies !hich !e are receiving from
a'road against !hich the Authori+ed Dealers making payment in local currency to the
'eneficiaries may 'e termed as &oreign Inland .emittance"
3.$ &+/e. +3 In0an/ Re)(ttan-e:
<"C")E Demand Draft DDDE3 DD is the most !idely used instrument of remitting fund" It is
order to pay money dra!n 'y one 'ranch of a 'ank upon another 'ranch of same 'ank for a
particular amount of money that is paya'le to order and demand"
<"C"%E 5rocedures of remitting money through DD3
)F
The procedures of remitting money through DD are stated 'riefly in 'elo!/
At first, the sender of money is advised to fill up a form and deposit the cash" The
form is usually called DD application form or credit voucher"
The senders of money fills up the voucher appropriately and place it !ith cash
'efore the officer at cash receipt section"
After receiving the voucher and cash, the officer counts the money and charges a
fee as commission" Here it is mentiona'le that the commission for DD up to tk
)(,((( is Tk" )( for per )((( and Tk" ) for every thousand a'ove Tk" )(,((("
After that, the voucher is sent to the concerned officer of remittance section"
Here the officer prepares a paper instrument called -Demand Draft DDDE0 and
enters the amount in the draft issue register"
Draft 'ook and DD along !ith the register are then sent to the officer in charge
for checking" If everything is ;kayed, the officer signs the DD and voucher and
keeps the register and counter foil of the DD"
After that the DD is issued to the sender of money" At this stage he can send the
DD to the receiver 'ranch 'y post or any other !ays,
After issuing the DD and handing over it to the sender of money, the DD issuing
'ranch sends an advice to the receiver 'ranch a'out DD"
&inally, the DD receiver 'ranch makes payment to the 'earer of DD" i"e" payee
after completing the necessary formalities"
<"C"<E Mail Transfer DMTE3 MT is another !idely used instrument of remitting fund from
one 'ranch of a 'ank to another 'ranch of the same 'ank" It is not used to remit fund from
one 'ank to another" MT is nearly same as DD"
<"C"*E 5rocedures of .emitting money through MT3
The procedures of remitting money through MT are almost same as the procedures of
remitting fund through DD" But there are some e2ceptions in this system0/
In case of MT, the sender of money is not provided !ith the MT paper 'ut a
receipt" The 'ranch sends the MT paper under its o!n responsi'ility 'y mail to
the MT receiving 'ranch"
)A
The commission for MT up to Tk" )( for per )((( and Tk ) for every thousand
a'ove Tk )(,((("
The postal charge is Tk )( for every MT issue and any amount of money"
The MT issuing 'ranch has to send a secret message i"e" Test to the MT receiving
'ranch" It is must for any amount of money" Here the amount of money, issuing
date and other particulates are mentioned"
To maintain the secrecy of the message sent, the issuing 'ranch codes the message
'y a particular num'er consisting of different digits" After receiving the message,
the paying 'ranch decodes it 'y using the predetermined techniues" This process
is called test" If every thing is ;kayed, the paying 'ranch makes payment to the
payee"
<"C"CE Telegraphic Transfer DTTE3 TT is the fastest means of remitting fund 'et!een t!o
'ranches of the same 'ank" &und can not 'e remitted from one 'ank to another 'ank
through TT"
<"C"FE 5rocedures of remitting money through TT3 The primary formalities that have to 'e
maintained to remit money through TT are same as DD and MT"
The commission for MT up to Tk" )(,((( is Tk )( per T7 )((( and Tk ) for
every thousand a'ove Tk )(,((("
Here a fee of Tk %( is charged as telegraphic charge for every TT issue and for
any amount of money"
In case of TT, no paper instrument is sent to the paying 'ranch" .ather the TT
issuing 'ranch sends a TT advice through telephone, telegraph, &a2 or tele2 to the
paying 'ranch" In sending message, the 'ranch keeps necessary secrecy"
#ide 'y side, the TT issuing 'ranch sends an advice to the head office of the 'ank"
After receiving the message, the paying 'ranch tests to decode the message" If
every thing is o'eyed, then the 'ranch makes payment to the payee" After that the
'ranch sends an advice to the head office to reconcile the accounts of 'oth
'ranches"
In case of TT, test is must for every issue and for any amount of money"
3.% FOREIGN RE&ITTANCE
)8
foreign In!ard remittance
&oreign out!ard .emittance
The remittances in foreign currency !hich are 'eing made from our country to a'road is
kno!n as foreign out!ard remittance"
#,rp+.e +3 O,t1ar/ Re)(ttan-e
To settle Import 5ayment"
To meet Travel ?2pensesIMedical ?2pensesI?ducational ?2penses etc"
There are three foreign remittance management processes" These are3
3.' RE&ITTANCE THROUGH THE DIRECT ARRANGE&ENT 4ITH SONALI BANK
#onali Bank has arrangement !ith some foreign 'ank and transfer agencies in various
countries" 6hen transfer is made from those countries and through any of those financial
institutions, they transfer it directly to the #onali Bank" This transfer is made through
online" Benerally #onali Bank 6age ?arners Branch receives all these remittance and
then sends it to the respective 'ranches of the 'ank" This is transferred 'y filling up a
TT5; DTelegraphic Transfer 5ay ;rderE form or &TT D&oreign Telegraphic TransferE
form"
.emittance through any other Bangladeshi Banks3
6hen there is no arrangement 'et!een the foreign financial institution and #onali Bank,
the foreign institution transfer it to any other 'ank in Bangladesh !ith !hom it has
arrangement" Then the 'ank transfers it to the #onali Bank" 6hen the transferor and
transferee 'ank are !ithin the same clear house area, the transferor uses 5( D5ay ;rderE"
And if the t!o 'anks are in different clearing house area, the transferor uses DD
DDemand DraftE
)@
&igure/<3 .emittance #hare
#ource3 http://www.sonalibank.com.bd/
In(t(a0t(:e. +3 S+na0( Ban< t+ ea.e Re)(ttan-e )ana5e)ent:
&igure/*3 ;peninig of .M#M
D#ource3 %ail& I''()*+E
%(
A srceenshot of .M#M
&igure/C3 A srceenshot of .M#M
#ource3 http://www.sonalibank.com.bd/
%)
A #rceenshot of ;nline Money e2change #oft!are is sho!n 'elo!3
&igure/F3 A #rceenshot of ;nline Money e2change #oft!are
D#ource3 #onali ?2change 4o" Inc" E
3.2 RE&ITTANCE THROUGH ANY OTHER BANGLADESHI BANKS
6hen there is no arrangement 'et!een the foreign financial institution and #onali
Bank, the foreign institution transfer it to any other 'ank in Bangladesh !ith !hom it
has arrangement" Then the 'ank transfers it to the #onali Bank" 6hen the transferor
and transferee 'ank are !ithin the same clear house area, the transferor uses 5( D5ay
;rderE" And if the t!o 'anks are in different clearing house area, the transferor uses
DD DDemand DraftE
%%
3.9 RE&ITTANCE THROUGH A FOREIGN BANK
The remitter can send money through any financial institution !hich has 'ranches in 'oth
countries" In this case, the 'ank in Bangladesh receives the amount from its foreign
'ranches and then transfers it to the 'ank !here the client !ishes to dra! the money"
Here the 'ank needs to fill up a 41 form if the amount of money is N%,((( or more" It is
done for the declaration for remittance received from foreign country in the amount of
N%,((( or more"
3.1? LOCAL RE&ITTANCE
6hen money is transferred through one place to another place !ithin the country, it is
called $ocal .emittance" #onali Bank has highest num'er of 'ranches all over the
country and offers various kinds of remittance facilities to the pu'lic"
3.11 &ODE OF IN4ARD RE&ITTANCES 6A0.+ O,t1ar/ Re)(ttan-e8:
The follo!ing are the mode of In!ardI;ut!ard .emittances"
iE TT O Telegraphic Transfer"
iiE MT O Mail Transfer"
iiiE &D O &oreign Drafts"
ivE 5; O 5ayment ;rder"
vE T4 O Travelers 4heue"
viE ?&T O ?lectronic &und Transfer
3.11.1 #AY@ORDER 6#?8
5ayment ;rder is an instrument that is used to remit fund !ithin a local area i"e" !ithin
the same clearing house area" &or e2ample, if !e !ant to remit fund from one place of
Dhaka to another place, !e generally use payment order"
%<
3.11.2 DE&AND DRAFT 6DD8
It is an instrument that is dra!n on one 'anker office to another or other 'anker1s 'ranch
to pay certain sum of money to the named person" It is generally used to remit fund from
one corner of the country to another" &or e2ample,, if !e !ant to remit fund from Dhaka
to 7hulna !e use DD" DD is very popular instrument for remitting money from one
corner of the country to another"
D(33eren-e ;et1een #a*@Or/er an/ De)an/ Dra3t:
There are some differences 'et!een pay order and demand draft" These are given 'elo!
P In case of Demand Draft 'oth the payer and payee need to have accounts" But there is
no certain rule for pay order"
P 5U is used in the same clearing area8 DD is used for all kinds" DD can not 'e done in
the same clearing area"
P DD is dra!n on a certain 'ank office" But there is no certain rule for pay orderD5;E"
3.11.3 TELEGRA#HIC TRANSFER 6TT8
#ome times the remitter of the fund !ants the money to 'e availa'le to the receiver1s
account immediately" In that case 'ankers arrange to remit the fund telegraphically" Here
the remitter 'ears the additional charge for tele2Itelephone"
3.11." &AIL TRANSFER 6&T8
It is an instrument that is dra!n 'y one 'anker office on another or other 'anker1s 'ranch
to pay certain sum of money to the named person" This instrument is not given to the
holder 'ut the 'ank carries it and a message is sent to the particular 'ranch" It is generally
used to remit fund from one corner of the country to another"
%*
C+))(..(+n 3+r &T= DD= A TT are 5(:(n5 ;e0+1:
Total Amount 4ommission
U5 to T7 %(,((( Tk %(
A'ove Tk %(,((( 5er thousand costs Tk )
&or MT minimum charge is Tk" )C" And for IT in addition to the commission TT charge
is paid Tk" C( and a GAT is paid on the commission Q)CH
3.12 FEATURES OF R&S 6RE&ITTANCE &ANAGE&ENT SYSTE&8 FOR &IDDLE
EAST RE&ITTANCE
Auto Test =um'er for any amount D5arameteri+edE
Auto #ignature D5arameteri+edE
Highly secured data transmission
Auto &eed Back
Data .eady for .econciliation
Uniue platform for all e2change company
4onsolidated Data packet for all overseas e2changeIBank
Missing data packet tracea'le 'y outlet soft!are
#ingle 4opy instrument print
Additional instrument copy prints !ith -4are Duplicate0"
Benerate all types of reuired statements
)((H parameteri+ed #oft!are
3.13 FOREIGN CURRENCY NOTES 6ON LINE RE&ITTANCES8
A remitter a'road simply has to approach a 'ank 'ranch there !ith certain amount to 'e
deposited 'eneficiary in Bangladesh either in foreign currency or in euivalent Taka
currency" The Branch so approached a'road usually should have agency arrangement
!ith the paying 'anks in Bangladesh" Ho!ever, in the a'sence of any such agency
arrangement, remittance may also 'e made 'y transferring cover value of the remittance
to the paying 'ank1s account a'road 'y the remitting 'ank"
%C
3.1" SOURCE OF IN4ARD RE&ITTANCE:
A" ?2patriate Bangladeshis"
B" ?2porters"
4" Gisitors
5urpose of .emittance3
In short, remittances are 'eing sent from a'road for the follo!ing purposes3/
&amily maintenance
Indenting 4ommission
.ecruiting Agents 4ommission
.eali+ation of ?2port 5roceeds
Donation
Bift
?2port 'roker1s 4ommission etc"
3.1$ A##RO!AL OF BANGLADESH BANK
Bangladesh is al!ays in a scarcity of foreign e2change and foreign e2change 'usiness is
restricted and controlled 'y the 4entral Bank of the country" &or this reason Bangladesh
Bank1s prior permission is reuired for any remittance to 'e made to outside the country"
Bangladesh Bank provides permissionIapproval for out!ard remittances to the applicants
!ho are to lodge an application for the purpose on the follo!ing prescri'ed forms !ith an
Authori+ed Dealer !ho for!arded the same to Bangladesh Bank for approval
3.1% &AIN FLO4 OF FOREIGN RE&ITTANCE
These are some of the ma,or countries of destination" #audi Ara'ia alone accounts for
nearly one/half of the total num'er of !orkers !ho migrated from Bangladesh" $a'or
market of Bangladeshi !orkers is not static" During the )@A(s #audi Ara'ia, Ira, Iran
and $i'ya !ere some of the ma,or destination countries" 6hile the position of #audi
%F
Ara'ia remains at the top, Malaysia and UA? 'ecame important receivers" In mid/)@@(s,
Malaysia 'ecame the second largest employer of Bangladeshi !orkers" Ho!ever, since
the financial crisis of )@@A, Bangladeshis migrating to Malaysia dropped drastically" =o!
UA? has taken over its place"
;ver the past %C years la'or migration from Bangladesh has registered a steady increase"
&rom )@@( on!ards on an average <, %C,((( Bangladeshis are migrating on short/term
employment, mostly to )< countries" In the past the 'ulk of the migrants consisted of
professional and skilled la'or" Ho!ever, the recent trend is more to!ards semi/ and
unskilled la'or migration" Due to increase in the flo! of unskilled and semi/ skilled
la'or, remittance is increasing at a much lo!er rate than the la'or flo!" .emittance is
crucial for Bangladesh1s economy" It constitutes almost one/third of the foreign e2change
earning" A'out %C percent of remittance senders !ere students !hen they !ent a'road
and another %C percent !ere living off their o!n land" A large segment of them !ere
!orking as construction la'orers overseas, another group !orked as agricultural la'orers"
UA?, #audi Ara'ia and #ingapore constituted the most of important destinations of these
migrants"
;ne survey comments that if the migrant !orkers1 total income a'road and the present
family income from other sources is com'ined and then compared !ith the pre/
migration family income, it registers an increase in total income 'y ))@ percent" ;n an
average, the intervie!ee households annually received a'out Tk"A%,8(( as remittance"
This means that a typical migrant remits CC"FC percent of his income" .emittance
constitutes C)")%H of the total income of these families" Transfer of remittances takes
place through different methods" *FH of the total volume of remittance has 'een
channeled through official sources, around *(H through hundi, *"F)H through friends
and relatives, and a'out 8 percent of the total !as hand carried 'y migrant !orkers
themselves !hen they visited
%A
3.1' CONTRIBUTION OF RE&ITTANCE TO THE NATIONAL ECONO&Y
&igure/A3 national gro!th remittance
#ource3 !!!"'angladesh/'ank"org
$a'or migration plays a vital role in the economy of Bangladesh" Bangladesh has a very
narro! e2port 'ase" .eadymade garments, fro+en fish, ,ute, leather and tea are the five
groups of items that account for four/fifths of its e2port earnings" 4urrently, garments
manufacturing is treated as the highest foreign e2change earning sector of the country
DU# N *"C8< 'illion in %((<E" Ho!ever, if the cost of import of ra! material is ad,usted,
then the net earning from migrant !orkers1 remittances is higher than that of the garments
sector" In %((<, net e2port earning from .MB should 'e 'et!een U#N%"%@/%"C% 'illion,
!hereas the earning from remittance is net U#N<"(F< 'illion" In fact, since the )@8(s,
contrary to the popular 'elief, remittances sent 'y the migrants played a much greater
role in sustaining the economy of Bangladesh than the garments sector"8 &or the last t!o
decades, remittances have 'een at levels of around <CH of e2port earnings, making it the
single largest source of foreign currency earner for the country" This has 'een used in
financing the import of capital goods and ra! materials for industrial development" In the
year )@@8/@@, %% percent of the official import 'ill !as financed 'y remittances DAfsar,
%(((8 Murshed, %((( and 7han, %((<E" The steady flo! of remittances has resolved the
foreign e2change constraints, improved the 'alance of payments, and helped increase the
supply of national savings DKui'ria )@8FE"
%8
Re)(ttan-e a. a per-enta5e .hare +3 GD#
&igure/83 .emittance as a percentage share of BD5
,Source: Bureau of Manpo-er. (#plo&#ent and 'rainin/ )orein (0c1ane 2olic&
%epart#ent. Banlades1 Ban3. 24125
.emittances also constituted a very important source of the country1s development
'udget" In certain years in the )@@(s remittances1 contri'ution rose to more than C(
percent of the country1s development 'udget" Bovernment of Bangladesh treats &oreign
aid Dconcessional loan and grantsE as an important resource 'ase of the country" Ho!ever,
remittances that Bangladesh received last year !as t!ice that of foreign aid" .emittances
have played a ma,or role in reducing the e2tent of the country1s dependence on foreign
aid" The contri'ution of remittance to BD5 has also gro!n from a meager ) percent in
)@AA/)@A8 to C"% percent in )@8%/8<" During the )@@(s the ratio hovered around *
percent" Ho!ever if one takes into account the unofficial flo! of remittances, its
contri'ution to BD5 !ould certainly 'e much higher" Murshed D%(((E finds that an
increase in remittance 'y Taka ) !ould result in an increase in national income 'y Tk
<"<<" &ollo!ing the e2piry of multi/fi'er agreement DM&AE, Bangladesh !ill face steep
competition in e2port of .MB" The country !ill cease to en,oy any special uota" It is
apprehended that Bangladesh1s .MB e2port !ill decline sharply" This !ill result in loss
of ,o' of many !orkers and shortfall in foreign e2change earning" 5otential of retaining
employment and e2port earning through e2port of fro+en fish, ,ute, leather and tea seems
rather 'leak" It is in this conte2t la'our migration has 'ecome key sector for earning
%@
foreign e2change and creating opportunities for employment" Therefore, the importance
of migrant remittance to the economy of Bangladesh can hardly 'e over emphasi+ed"
A discussion on remittance is !arranted not only 'ecause of its sustained contri'ution
to!ards gro!th, and role in maintaining overall 'alance, of the economy, 'ut also
'ecause of depressed demand arising out of political insta'ility in some Middle ?astern
countries, the region receiving most of the temporary migrant !orkers, prohi'ition in
issuance of visa in U"A"?", and the recent spat 'et!een recruiting agencies and the
government" The situation has 'een further challenged 'y the e2isting structural pro'lems
such as increase in less/skilled la'our migration instead of skilled and professionals and
failure in adding ne! destination in the current decade" The economy has !itnessed a
decreasing trend in per capita remittance after the month of &e'ruary, %())" Although the
flo! of remittance has increased in the local currency, the amount declined in terms of
dollar due to the depreciation of local currency against dollars"
3.12 RE&ITTANCE INFLO4S IN BANGLADESH
;ver the years, the flo! of remittance in Bangladesh is increasing in volume, 'ut the rate
of gro!th in remittance has decreased since &R %((8/(@ e2cept in the last fiscal year"
Year0* 30+1 +3 Re)(ttan-e
&igure/@3 remittance Inflo!s in Bangladesh
,Source:Bureau of Manpo-er. (#plo&#ent and 'rainin/ )orein (0c1ane 2olic&
%epart#ent. Banlades1 Ban3. 24125
In &R %())/)%, the rate of gro!th in remittance !as )("%* percent, !hich !as *"%)
percent more than that of &R %()(/))" In &R %()(/ )), the rate of gro!th in remittance
!as F"(< percent, !hich !as respectively A"<F, @"(% and @"@A percent less than those of
<(
&R %((@/ )(, &R %((8/(@ and &R %((A/(8" In &R %())/)%, Bangladesh received
remittances of U#D )%8*<"*< million !hich !as ))@<")) million more than that of &R
%()(/))" ?specially, the inflo! of remittance had 'een increasing from the &R %(()/(%
D&igure3 )E" The peaks in rate of gro!th of remittance !ere in &R )@@F/@A, &R %(()/(%
and &R %((A/(8" Again, the rate of gro!th in remittance !as the lo!est in &R )@@C/@F,
&R %(((/(), %((</(* and &R %()(/ ))" During &R %((%/(< / &R %((*/(C, the yearly
average rate of gro!th in remittance !as )C"CF percent !hereas it !as only @"8@ percent
during &R %((@/)( to %())/)%"
According to ne!spaper reports,)Bangladesh received remittances of BDT F8,*<A"8(
million in total in Decem'er, %()( including BDT <"C million from the Bangladeshis in
$i'ya" The remittance from $i'ya !as the highest in August, %()( !ith BDT F"@ million"
As the political crisis in $i'ya along !ith some other Middle/ ?astern countries continues
for long, remittance inflo! to the country have come do!n drastically" Bangladesh is
considered one of the ma,or la'our e2porting countries of the !orld"
&+nth0* 30+1 +3 Re)(ttan-e
&igure/)(3 Monthly flo! of .emittance
,Source: Bureau of Manpo-er. (#plo&#ent and 'rainin/ )orein (0c1ane 2olic&
%epart#ent. Banlades1 Ban3. 24125
<)
Inflo! of remittance in the current fiscal year e2hi'its an erratic trend, going do!n in a
month !hile increasing in the other, suggesting no definitive trend" The inflo! of
remittance in the months of >uly, August, #eptem'er and ;cto'er in %()% are U#D
)%()")C million, ))A8"FC million, ))A)"@( million, and )*C<"F million respectively" The
receipt of remittances, ho!ever, in ;cto'er has peaked as usual, coinciding ?id/ul/Adha
and Durga 5u,a" 4onsidering &R %()(/)), &R %())/)% and %()%/()<, remittance inflo!
sho!s a decreasing trend during >uly to #eptem'er" In &R %()%/)< DDuring >uly to
;cto'erE, the rate of gro!th on remittance !as %*"AC percent !hich !as ))"@@ percent in
&R %())/)%" As the incremental gro!th rate of remittance is decreasing, the gap 'et!een
the actual flo! of remittance and the target made in the Medium Term Macroeconomic
&rame!ork DMTM&E of the government in the upcoming fiscal years might gro!" In &R
%())/ )%, the actual receipt of remittance !as U#D )%"8* 'illion than that of the MTM&
target of U#D )%"@( 'illion" In &R %()%/)<, the receipt of remittance might 'e U#D
)<"*F 'illion in total than that of the MTM& pro,ection of U#D )*"C( 'illion, !hich
indicates a gap of U#D )"(* 'illion" The gap might increase further in &R %()F/)A, if a
pro,ection is made on the 'asis of historical track record" In a 'usiness as usual scenario,
the flo! of remittance might stand at U#D )C"@* 'illion against the MTM& target of U#D
%<"(( 'illion" According to the ne! target of MTM&, the inflo! of remittance !ere U#D "
("<( 'illion, U#D ("<( 'illion, U#D ("8( million and U#D ("*( million respectively in
&R %()%/)<, &R %()</ )*, &R %()*/)C and &R %()C/)F !hich is more than that of the
previous target"
<%
La;+,r )(5rat(+n 3r+) /(33erent -+,ntr(e. +:er the *ear.
&igure/))3 $a'our migration from different countries over the years
6 #ource3 Bureau of Manpo-er. (#plo&#ent 6 'rainin. Banlades1 Ban3. 2412
Ta'le/%3 4;U=T.R 6I#? 4;M5A.ATIG? #TAT?M?=T ;& &;.?IB=
.?MITTA=4?3
Month
>an/
(F
>an/
(A
&e'/
(F
&e'/
(A
Mar/
(F
Mar/
(A
Apr/
(F
Apr"
(A
4ountry =; ;& .?MITTA=4?
#audi Ara'ia )8<@( %%F*( )@A<* %C<)* %<@8@ %8A<* %)<** <)*)8
7u!ait )%%@ )%88 )<(C ))*% )<)A )(@F ))<C )<%C
Katar 8 )( )< )( @ @ )) A
U"A"?" %@< <@% %%< *(* %%C *CA %*C C(*
;man *( <A %8 <F C% *% <C <@
Bahrain )8* )(< )C) @F )A( )%( )<C )*C
U"7" )C@@( 8CA( )<<A8 8*<) )%@*8 8AA) )))CA 88A(
U"#"A" )*<A8 )%CF( )<%<F )%%A% )C8*< )*A*< )C*CC )CC8%
>apan *A <@ *@ C% *8 *8 CF F8
#ingapore * / / / )( /
Bermany )<< )<@ )A) )<( )8C )F% )F@ )8A
Malaysia F%F %@< *F8 <CC CCA <FA <@* *)A
;ther <<* <CA <() <%( <%F <8) <FA *@@
Total3 C)FCF *F*%8 %* *8CF% CCFF@ C*@<( C(C)< C@(F)
Source: 7ae (arner8s Corp BR %1a3a.
<<
Ta'le/<3 $I#T ;& DI&&?.?=T ?S4HA=B? 4;M5A=R U=D?. .M#
SL
NAME OF EXCHANGE COMPANY
DAY
BOOK A/C NO.
1 Al Mulla Inerna!onal E". Co# Ku$a! %& ''()*+%%
) Alra,-! Ban. /!0a1-# K.S.A '( A23+'
' Ara4 Na!onal Ban.# K.S.A 3% ''()&&5'
* Ban. Al B!la1# K.S.A 3* ''()&&(&
% C!0 Inerna!onal E"c-an6e# Ku$a! 1+ C2)%
3 Gul7 O8er9ea9 E"c-an6e Co. O:an )3 G2*+
5 O:an E"c-an6e Co. Ku$a! 1( O23
& O:an Inerna!onal E"c-an6e# O:an )) O211
Chapter F+,r
FINDINGS
".1 &AOR FINDINGS
I have found out some points 'y screening the !hole study, !hich are e2pressed as ma,or
findings" The conversations !ith the #onali 'ank $td officials !ere very significant for
the findings"
L As a commercial 'ank, #B$ still follo!s the traditional 'anking" This
organi+ation still concentrates on production oriented approach 'ut for the present era of
Marketing" The large distri'ution channel and the inefficiency of the employees do not
permit the proper marketing orientation in Banking"
L There is a training institution and a human resource division of #B$ to run the
activities of human resources"
<*
L The communication of #B$ is open and free" #B$ uses notice 'oard, maga+ine,
ne!sletters, the suggestion programs etc as a method of communication"
L It uses pay, financial incentives, fle2i'le !orking hours, !ork sharing,
promotions, giving responsi'ilities, autonomy and decision as a method of motivating
employees"
L It provides compensation according to the government pay scale"
L It has no any procedure to determine salaries and !ages"
L There is no provision for overtime in #B$"
L It uses negotiation procedure to grievance handling"
L It has a 'etter la'or management relationship"
L There is no specific ,o' analysis for the evaluation of the position in the #B$"
L #B$ descri'es the duties and responsi'ilities of the department and thedepartment
descri'es the duties and responsi'ilities of the sections of the department"
L #ometimes inefficient allocations of resources have created a huge amount of de't
L #ometimes pressure groups are involved sanctioning loan"
".2 #ROBLE&S OF SONALI BANK IN R&S AND SUGGESTIONS
There are many pro'lems, !hich affect the smooth and profita'le operations of
commercial 'anks" &or #onali Bank as !ell these pro'lems pose a great threat of carrying
out its normal operations smoothly" They are summari+ed 'elo!3
".2.1 #ROBLE&S:
aE $ack of skilled manpo!er
'E $ack of Internet facility
cE $ack of management
dE $ack of data processing system
eE $ack of net!orking
fE $ack of monitoring
gE $ack of reporting
hE 5ro'lems in soft!are Dit is no! in the ongoing processE
<C
".2.2 SUGGESTIONS:
Manpo!er should 'e trained
High speed internet facility should 'e implemented
5roper computeri+ation should 'e implemented
=et!orking should 'e improved
?sta'lished a proper monitoring cell to control the ueries of the
customers
.eporting system should 'e developed
5ro'lems of soft!are should 'e managed soon"
".2.3 OTHER #ROBLE&S AND SUGGESTIONS
".2.3.1 Ban<(n5 #+0(-*:
Banking policies are generally made at the Ministry of &inance and the policies are
scrutini+ed and implemented 'y the Bangladesh Bank" $ater, the Bangladesh 'ank
enforces these rules and regulation, interest rates, loan dis'ursement etc" important
'anking factors for other commercials 'anks and financial organi+ations" In many cases,
the faulty decision/making and policymaking costs commercial 'anks dearly" #o, 'efore
making any sort of drastic decision regarding policymaking the government should at
least discuss !ith the top management of the commercial 'anks"
".2.3.2 4ea< &ana5e)ent:
#onali 'ank $td faces severe lack in strong management policy" Most of the top
management are influenced 'y the government 'odies like Bangladesh 'ank and
Ministries" They are not allo!ed to !ork freely rather depend heavily on government
<F
organi+ations as such" #o in most cases independent decisions do not come from 'ank
officials"
".2.3.3 E)p0+*)ent Ba0an-e:
There are more than ),((( 'ranches of #onali Bank all over Bangladesh and outside
Bangladesh" But all the 'ranches are not 'alanced from employment point of vie!" #ome
'ranches of .egionalI5rincipal offices have over employment !hile some faces the
pro'lem of under employment" The 'alance of the personnel !orking in each 'ranch has
to 'e set properly depending on the volume of !ork"
".2.3." #++r Ser:(-e:
This is 'asically due to lack of manpo!er against huge amount of !ork the 'ank usually
deals !ith" #onali 'ank does !hat a private 'ank does, apart from that it also !orks as the
treasury service of the government, utility services, passport services, foreign currency
service and virtually all the services that can 'e done 'y a 'ank is done 'y #onali Bank"
4onsidering huge amount of !ork some 'ranches notoriously lag enough manpo!er
against it" It is not the efficiency of the !orkers that is lagging, 'ut it is the huge amount
of !ork to 'e done is not met 'y mere manpo!er"
".2.3.$ L+an De3a,0t:
6e have already considered data !here !e have found the recovery of #onali Bank1s
credit is very poor" There are many reasons 'ehind it" The culture of loan default has to 'e
overcome taking appropriate measures"
#onali 'ank $td has to follo! the a'ove suggestive measures, so that its performance,
deposit dis'ursement, recovery, investors, importer, good!ill etc" !ill 'e increased"
".2.3.% On0(ne Ban<(n5:
<A
Although #onali Bank $td has taken the facility of using computers in maintaining cash
and other sections 'ut still it has not taken the full advantage of the modern day !onder
of full fledged computer facilities" Most of the private 'anks are operating %* hour 'asis
online 'anking : the sector still ignored 'y #onali Bank" All the 'ranches do not maintain
their ledgers using computers yet" Money transfer in different modes, !age earners and
foreign e2change etc" has not still taken up 'y the computers till no!"
".3 STRENGTH= 4EAKNESS= O##ORTUNITY AND THREAT 6S4OT8
ANALYSIS
Stren5th:
$argest commercial 'ank in Bangladesh"
6idely recogni+ed and strong 'rand name"
Agent of Bangladesh 'ank"
Kualified and e2perienced !orkforce"
#trong liuidity and financial condition"
#trong net!orks all over in Bangladesh"
4ea<ne..:
Huge amount of 'adIde't loan"
$ack motivation of !orkers"
#ervice is not up to the mark"
;nline 'anking is not strong"
A'sence of team!ork"
6eak 'ranch controlling and monitoring system"

Opp+rt,n(t*:
Investment potentiality in Bangladesh"
Increasing demand of customer finance"
?normous opportunity in foreign remittance section"
<8
By implementing e/commerce and online 'anking remarka'le
;pportunities are created"
Threat.:
High standard 4ommercialI&oreign 'ank as !ell as private 'ank"
Illegal interference of 4BA in 'anking activities"
Highly ualified and e2perienced 'ankers leave the 'ank a very high
percentage"
4annot take proper action against 'ad de'tor due to political interference"
Increasing percentage of shifting customer loyalty"
$o! Interest rate compare to private I&oreign 'anks"
Chapter F(:e
RECO&&ENDATIONS AND CONCLUSION
$.1 Re-+))en/at(+n.:
To deliver faster services to the customer1s convenience, #onali Bank $td should
provide more personnel to customers"
5roper communication system and maintenance of files 9 machineries like
phone, computer, fa2, and photocopier need to 'e ensured"
To ensure error free faster services, the 'ank should 'e fully computeri+ed"
<@
?ffective strategies must 'e undertaken against defaulters"
.esearch 9 Development activities should 'e taken into consideration
;ffice should 'e fully decorated to attract clients to take its services"
More employees are to recruit" &or the 'etter service, training is must and
according to the skill and education 'ackground of employee needs to 'e
positioned"
The Bank should a'solutely maintain on its o!n rules and procedures"
The Bank should introduce re!ard system for good 'orro!ers as !ell as
punishment for 'ad 'orro!ers"
The Bank should apply moderni+ed Marketing Information #ystem"
The Bank should act !ithout any kind of political influence"
$.2 CONCLUSIONS
#onali 'ank is 'y far the 'iggest 'ank as !ell as financial organi+ation of Bangladesh" It
has some advantages and disadvantages too" #ince it inception in the early )@A% after the
independence of Bangladesh it has played a vital role to!ards the progress of the nation
in almost all spheres" The ratio analysis and 4AM?$ ratings do not reflect good
impression of the 'ank to any'ody" But all these analysis do not actually sho! the true
story of the 'ank" The 'ank is still not facing losses year after year" But there are some
pro'lems !ith the 'ank1s performance" 5oor government policies regarding financial
organi+ations, poor credit culture in our country and lack of vision 'y top management,
interference of 4BA in all 'anking activities etc" is giving raise to the pro'lems of the
'ank day after day" .ecently, the government has appointed foreign management !ho
!ould !ork independently and 'y taking appropriate measures !ill try to improve things"
The decision is still refuted 'y many and the results are yet to 'e proved in near future"
#o, for the time 'eing !e may hope that the private 'ody of top management might take
appropriate measures regarding the pro'lems identified and discussed so far and there'y
eliminating the pro'lems to take the 'ank to a more profita'le and good service rendering
organi+ation to the people of the government repu'lic of Bangladesh"The Banking arena
*(
in recent time is one of the most competitive 'usiness fields in Bangladesh" As
Bangladesh is a developing country, a strong 'anking sector can change the socio
economic structure of the country" #o !e can say, the !hole economy of the country in
linked up !ith its 'anking system" There are C* 'anks in Bangladesh in !hich <8 are
indigenous commercial Banks" #onali Bank ltd is the largest commercial Bank of
Bangladesh" This 'ank performs hundreds of important activities 'oth for the pu'lic and
for the government as a !hole" It has an outstanding 'earing to thrive our 'usiness sector"
It has strong performance on Beneral Banking, $oans 9 Advances, Industrial credit and
foreign ?2change" I had the privilege to learn many things a'out the remittance
management system from the 7aoran Ba+ar Branch through my active involvement in
this 'ranch"
REFERENCES
Amin, #ayeedul Al and .ahman, #k" #aifur, D%()(E, JApplication of ?lectronic Banking
in Bangladesh8, Banlades1 Researc1 2ublications 9ournal, Golume *, Issue %,
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?valuation ;f The .ole ;f Technology And .elationship In Banking3 #tudy ;n
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6e' search in http3II!!!"sonali'ank"com"'dI
6e' search in http3II!!!"clickittefa"comIsci/techIsonali/'ank/starts/automationI
6e' search in http3II!!!"infinitye2press"'i+I.M#"asp2
6e' search in http3II!!!"spftl"comIa'outIa'out/us"asp
6e' search in http3II!!!"polarisft"comIconsumer/'ankingIcore/'anking"asp
6e' search in http3II!!!"'angladesh/'ank"org
6e' search in http3II!ikipedia"com
6e' search in http3II!!!"investors!ords"comI*()I'ank"html
6e' search in http3II!!!"'angladesh/'ank"orgIfnansysI'ankfi"html
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