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INTRODUCTION
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1.1 Introduction
Janata Bank Limited, the 2nd largest State Owned Commercial Bank (SCB) in Bangladesh, is playing
pivotal role in overall financial activities of the country. The Bank emerged as Janata Bank by
combining the erstwhile United Bank Limited and Union Bank Limited under the Banks Nationalization
Order (Presidents Order 26) of 1972 and was restructured as a limited company in November, 2007.
Since inception in 1972 the Bank has commendably contributed to the socio-economic development of
Bangladesh and helped structuring solid financial ground of the country as well. Janata Bank runs its
business with 905 branches across the country including 4 overseas branches in United Arab Emirates.
In the age of globalization, the importance of banking sector is beyond description .banking sector is
going ahead with the improvement and invention of new services and offerings to gather and retain more
customers. Besides other banking activities remittance has become an essential part of a banks daily
activity to perform. In our daily life we usually use the tools like DD, TT, MT etc in order to sent money
from one place to another. Again, we know that foreign remittance has a great impact on our national
economy. Internship in janata bank ltd. (jatrabari corporate branch, Dhaka) has brought me the
opportunity to know details about various tools of remittance. At the vary beginning of the internee
period, I was too much interested about A/C opening and loan sanctioning system of a bank like janata
bank ltd. But in a few days I recognized that my branch deals with remittance more than any other
banking activity. Working with remittance system in daily banking day turns my attention in remittance
which creates the background of the study.
The Internship is very helpful to bridge the gap between the theoretical knowledge and real life
experience as the part of the BBA program. This report has been designed to have a practical experience
through the theoretical understanding. For the completion of the report I have been placed in Janata Bank
Limited, jatrabari corporate branch, Dhaka. I decided to work on the practices of remittance activities of
the bank. The report focuses on remittance activities in local and foreign banking.
I prepared the internship report under the supervision of our honorable teacher Prof. Dr. Md. Mosharraf
Hossain. I have always tried my best to reflect my experience of the practical incidence in this report.
The main objective of the report is to get a clear idea about the significant contribution of remittance in
nations economy as well as Janata Bank Limited and make an elaborate analysis on the banking activities
towards the foreign remittance.
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1.3.2 Specific Objective:
The objective of the project is to make familiar students with the real business situation, to compare them
with the business theories & at last stage make a report on assign task. The specific objectives of this
report are:
Time Limitation: It was one of the main constraints that affected covering all aspects of the study.
Lack of Secondary Information: The data is not much available over the net. Secondary source of
information was not sufficient for the completion of the report.
Limitation of the Scope: Much confidential information was not disclosed by respective personnel of
the department. These are,
With all this limitation tried best to make this report as best as possible. So readers are requested to
consider these limitation while reading justifying any part of my study.
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1.6 Analysis Techniques
Both qualitative and quantitative methods were applied for preparing this report. The data were analyzed
and presented by Microsoft excel and shows percentage, graphical presentation and different types of
charts. Best effort was given to analyze the numerical findings.
This study is descriptive in nature and so was conducted using assessment of different historical data
along with other sources.
Primary Sources-
Simple Depth interview technique was used by asking number open-ended questions to collect
the information.
Face to face conversation with the official staff.
Practical deskwork.
Relevant file study as provide by the concerned officer.
Personal observation.
Secondary Sources-
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Local Office and Head office of the Janata Bank Limited.
Different journal regarding Janata banking.
Planning
The Approach
Theatrical Cosideration
The literature Review
Methodology
Collecting Information
Analyzing
Submission The
Report
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Chapter 02
History of Banking in Bangladesh
After the independence, banking industry in Bangladesh started its journey with 6 nationalized
commercialized banks, 2state owned specialized banks and 3 foreign Banks. In the 1980s banking
industry achieved significant expansion with the entrance of private banks. Now, banking sector in
Bangladesh is primarily of two types:
Schedule Bank
Non-schedule Bank
Scheduled Bank: The banks which get license to operate under Bank Company Act, 1991 (Amended in
2003) are termed as Scheduled Bank. State-owned commercial banks, private commercial banks, Islamic
commercial banks, foreign commercial banks and some specialized banks are Scheduled Bank.
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Non-Scheduled Bank: The banks which are established for special and definite objective and operate
under the acts that are enacted for meeting up those objectives are termed as Non-Scheduled Bank. These
banks cannot perform all functions as like as scheduled banks. Grameen Bank, Probashi 6 JBBC K.K.
Tokyo To, Toshimaku, Higashi Ikebukuro, 1-20-2, Room 502, Japan. info@jbbc.co.jp Kallyan Bank,
Karmasangsthan Bank, Progoti Co-operative Land Development Bank Limited (progoti Bank) and
Answer VDP Unnayan Bank are Non-Scheduled Bank.
The commercial banking system put on vital role in Bangladesh's financial sector. Bangladesh Bank is the
Central Bank of Bangladesh and the principal regulator of the sector. Bangladesh have total of 55 states
owned, private, foreign and specialize Banks. The banking system consists of four state-owned
commercial banks, 31 private commercial banks, 10 specialized development banks, and 10 foreign
commercial banks.
The Nobel Prize for Grameen Bank is a specialized micro-finance institution, the concept of microcredit
revolution and a major contribution to poverty alleviation and empowerment of women in Bangladesh.
Structure of the banking sector by the type of banks is shown in table 1 below:
Number
Bank Types Number of Total % of Assets Deposits % of
of Banks Branches Assets Deposit
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There are 5 types of Banks in Bangladesh. These are:-
Bangladesh Bank
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Bank Asia Limited
Trust Bank Limited
Shahjalal Islami Bank Limited
Jamuna Bank Limited
AB Bank
AB Bank
Marcantile Bank Limited
Citibank
HSBC
Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
Habib Bank Limited
National Bank of Pakistan
Woori Bank
Bank Alfalah
ICICI Bank
[Source: A Report on Banking Sector of Bangladesh Mansur Ahamed (Ph. D) Research Department,
JBBC Corporation]
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The Bangladesh Bureau of Statistics (BBS) recently established a provisional estimate of 6.5 per cent for
gross domestic product (GDP) growth in fiscal year 2015 .This was 0.8 of a percentage point lower than
the target of 7.3 per cent in the FY2015 budget.1 It may be recalled that, according to SFYP, the GDP
growth rate for FY2015 was set at 8.0 per cent. Many analysts, including those from the World Bank and
Asian Development Bank, expected economic growth in FY2015 to be between 5.6 and 6.1 per cent due
to political turmoil in the third quarter of the fiscal year and trends of associated macroeconomic
correlates (see World Bank [2015] and ADB [2015]). CPD (2015) estimated that total losses suffered by
selected sectors from January to midMarch of 2015 due to political unrest would be approximately Tk.
4,900 core, which would be approximately 0.55 per cent of GDP for FY2015 if the 6.5 GDP growth in
Bangladesh.
Chapter 03
The Banking at a Glance;
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Janata Bank Ltd
Bangladesh Bank issued license on 31 May 2007 in the name of Janata Bank Limited to conduct the
banking business. The registered office of the company is located at 110 Motijheel C/A, Dhaka-1000 and
the website address is www.jantabank-bd.com.
3.2.1 Vision:-
Becoming effective largest commercial bank and ensuring highest standard of client services through best
application of latest information technology, making due contribution to the national economy and
establishing themselves firmly at home and abroad as a front ranking bank of the country are their
cherished vision.
3.2.2 Values:-
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Customer focus.
Integrity.
Teamwork.
Respect for the individual.
Quality.
Responsible citizenship.
3.2.3 Mission:-
The mission of the bank is to actively participate in the socio- economic development of the nation by
operating a commercially sound banking organization, providing credit to viable borrowers, efficiently
delivered and competitively priced, simultaneously protecting depositors funds and providing a
satisfactory return on equity to the owners
3.2.3 Objective:-
Segment Operation
i. Loans & Advances Includes loans, deposits and other transactions and balances with
corporate customers & retail customers.
ii. Treasury Undertakes the bank's funding and maintenance of SLR, Asset liability
management through borrowings and placement, currency swap and
investing in liquid assets such as short-term placements and corporate and
government debt securities.
iii. Overseas Branches Four (4) overseas branches of Janata Bank Limited are situated in UAE &
(UAE) operating banking business, money remittance etc. as per the head office
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instructions and other activities as permitted under the banking law of
UAE.
iv. Janata Exchange Janata Exchange Company Srl., Italy, subsidiary company of Janata Bank
Company Srl, Italy Limited operates its business in Italy. It performs the activities of money
remittance, issue cehques, payment instruments and traveler's cheque and
other activities as permitted under the banking law of Italy.
v. Janata Capital and Established to do all kinds of merchant banking activities including issue
Investments Limited management, underwriting, portfolio management and other transactions.
Commercial banks have disbursed about 42 per cent of the total revolving fund among the
entrepreneurs who vowed for green banking scheme. A large number of banks under the scheme
have formed green banking units, introduced green office guides, have been powered by solar
energy and have been facilitated with online coverage.
A good number of banks, state-owned and private, and also a nonbank financial institution have
shown interest in environment friendly electricity projects to get green energy by 2015. Likewise,
other banks have undertaken strategies to finance biogas plants, solar assembling plants, solar
irrigation system and solar power plant projects.
Environmental Risk Rating (EnvRR) has been done for 3,703 projects during April-June, 2012.
Bangladesh Banks activities have been fully automated: Bangladesh Automated Cheque
Processing System (BACPS), Bangladesh Electronic Fund Transfer Network (BEFTN), National
Payment Switch (NPS), Enterprise Data Warehouse (EDW), e-tendering, and e-recruitment are
major instances of automation.
Bangladesh Bank has done environmental risk rating for a large number of projects.
Janata Bank Ltd. has been Recognized Internally and Domestically for its Good
Performances are outlined below:-
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Janata Bank Limited receives "Asian Banking Awards 2004" on financing Program for Women
Entrepreneurship.
Janata Bank Limited gets The Banker Award-2003.
International Award-The Bank of the Year-2002 The Banker.
International Award-The Bank of the Year-2001 The Banker.
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Chairman
Managing Director
General Manager
Principal Officer
Senior Officer
Officer
Sub Accountant
Senior Clark
Figure 3.1: Organizational Structure of Janata bank Ltd.
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SWOT analysis is the detailed study of an organizations exposure and potential in perspective of its
strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of
performance and also foresee the future to improve their performance in comparison to their competitors
about a specific topic. As though this tool, an organization can also study its current position, it can also
be considered as an important tool for making changes in the strategic management of the organization.
Strengths:-
Janata Bank has the reputation of being the provider of good quality services to its, potential
customers. So in case of remittance service the customer prefer it as a loyal bank.
Janata Bank has sufficient branch to meet the customer remittance need in rural area and also in
urban area.
Janata Bank has already achieved high profit from remittance service.
Weakness:-
Opportunities:-
The Janata Bank has some foreign branch which is able to serves in foreign remittance service.
It has already involved in computerized banking system. So it will be an greater opportunity in
providing better remittance service.
The foreign remittance service has direct impact on profitability of the bank
Threats:-
On-line banking is not available in Janata Bank. But it is very important tools in remittance
service.
Private bank is more preferable to customer about remittance service.
The low compensation package of the employees from mid level to lower level position threats
the employee motivation. As a result, good quality employees leave the organization and its
effects the organization as a whole.
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3.7 Corporate Social Responsibilities (CSR)
Janata Bank Ltd. conducts it CSR in 2 ways- policy driven and through direct participation in specific
programs. However, JBL intends to adopt CSR practices, more in the formal and structured manner in
light of the Bangladesh bank guidelines for mainstreaming CSR practices in the 16 financial sector.
Future efforts of the bank in respect of CSR will include more involvement of its stakeholders in terms of
their expectations and needs in order to incorporate more responsible business practices in all of banks
functions and operations with a goal to fulfill social, economic, environmental, and ethical responsibilities
of the bank.
Total involvement for CSR activities stood at 100,000,000tk at the end of the year 2014. JBL channelized
this CSR outlay in diverse areas judging from need and importance it attaches to the banks perspectives.
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3.8 Information of Branches
There are 900 branches of Janata Bank Limited in home and 4 in abroad. And all foreign branches are
situated in United Arab Emirates.
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Product and services is the main assets of any organization. JBL is playing the most significant role in
offering specialized services to different clients or agencies throughout the country. The following
product and services are available of Janata Bank Ltd.
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3.9.5 Credit Card: -
Credit card is the newest concept in our country. In our country Credit card was first introduced by the
Janata Bank Ltd. Master card and VISA card are name of popular credit card band. Credit card is safe,
instant, and universal money. Janata Bank Ltd. Issues two type of credit cards given below:
Joining with the world's largest money transfer service "Western Union", JBL has introduced Bangladesh
to the faster track of money remittance. Now money transfer between Bangladesh and any other part of
the globe is safer and faster than ever before. This simple transfer system, being on line eliminates the
complex process and makes it easy and convenient for both the sender and the receiver. Through JBL -
Western Union Money Transfer Service, your money will reach its destination within a few minutes.
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3.10 Function of JBL as a Commercial Bank
Janata Bank
Ltd.
Receive and payment as the
Representative Representative of clients,
Function Selling of Share and
Securities.
Transaction of Foreign
Service Currencies, Information
Function Sharing, Consulting and
Others Service Function.
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3.11 Financial Highlights of JBL at a Glance Performance Analysis
25,000,000,000
20,000,000,000
15,000,000,000
TK. 10,000,000,000
5,000,000,000
0
2013
2014
Graph 3.1 Compare Between Operation Profit and Net Profit of JBL from 2013 to 2014
10,000,000,000
8,000,000,000
6,000,000,000
TK. 4,000,000,000
2,000,000,000
0
2013 2014
-2,000,000,000
-4,000,000,000
Graph 3.2: Compare Between Non-Interest Income and Interest Income JBL from 2013 to 2014
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3.11.3 Compare Between Return on investment (ROI) and Return on Assets (ROA) JBL:
10.00%
9.00%
8.00%
7.00%
Percentage 6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2013 2014
Graph 3.3: Comparing Between Return on investment (ROI) and Return on Assets (ROA) JBL
from 2013 to 2014
90
80
70
60
Tk.
50
40
30
20
10
0
2013 2014
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Graph 3.4: Comparing Between Earning per share (EPS) JBL from 2013 to 2014
8,000,000,000
7,000,000,000
6,000,000,000
5,000,000,000
Tk. 4,000,000,000
3,000,000,000
2,000,000,000
1,000,000,000
0
Janata Bank Ltd. Sonali Bank Ltd. Rupali Bank Ltd. Agrani Bank ltd.
Graph 3.5: Comparing Net Profit After Tax (NPAT) With Four Nationalized Commercial Bank of
Bangladesh 2014
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Chapter 04
Remittance Activities: Study on Janata Bank
Ltd.
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4.1 Introduction of the Issue
Remittance is sending money from one place to another through banking or authorized channel. Banks
earn maximum portion of non interest income from remittance. Noninterest income of a bank depends on
largely, the overall qualities of services of the bank. So the precondition for a banks prospects to provide
remittance service in modern and developed way, relevant expertise of the employees and customers
satisfaction.
Remittance is important from the customers point of view, as it is easy, less expense, minimizing risk.
Remittance is important from the bankers point of view as Bank earn noninterest income, helpful for
other business and helpful for stable economic growth. Mainly the following parties are involved in
remittance:
Banking sector now-a-days plays an important role to develop the economy of a country, especially
developing country. It is worthless to say how much important the banking sector to run the wheel of a
countrys economy. With the globalization of economies, international trade has become quite
competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for
successful international trade operations. Foreign remittance plays significant roles in countrys economy.
In Bangladesh remittance is increasing day by significantly and many banks are playing excellent role in
this sector, among them one of the most prominent banks is Janata Bank Limited which is providing
different services to the customers through its three departments. One of the departments of JBL is
general banking department; this department is the most important department of JBL. Under this
department Local and foreign remittance service is provided. Since Marketing is the Area of my study,
Bank Remittance Seems Preferred me Rather than Any Other Banking Activates to study. Thus I think,
this Study will Vehemently Help to me go Forward and Improve my Career Path.
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Remittance is two types:-
Remittance of
JBL
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relationship with foreign and financial institutions around the globe as well as exploring new
relationships. In addition to that, we provide assistance in marketing the products of the correspondent
banks.
Al present JB is maintaining relationships with 30 (thirty) foreign correspondents and the number is
growing every day. Currently the bank has 18 (eighteen) NOSTRO A/Cs wife large foreign banks abroad.
The bank is a SWIFT member and its Bank Identification Number or BIC is JBLBBBH.
Place-1 Place-2
Go to Pay Money
Remittance
Department
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Pay Order (PO).
Security deposit receipt(SDR).
Pay slip.
OBC.
Clearing House.
Cash Management.
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 with cash before 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 mentionable that the commission for DD up to tk 10,000 is Tk. 10 for per
1000 and Tk. 1 for every thousand above Tk. 10,000.
After that, the voucher is sent to the concerned officer of remittance section.
Here the officer prepares a paper instrument called Demand Draft (DD) and enters the amount
in the draft issue register.
Draft book and DD along with the register are then sent to the officer in charge for checking. If
everything is Okayed, 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 branch by post or any other ways.
After issuing the DD and handing over it to the sender of money, the DD issuing branch sends an
advice to the receiver branch about DD.
Finally, the DD receiver branch makes payment to the bearer of DD. i.e. payee after completing
the necessary formalities.
First the customer fill up the DD application form are as follows name of the payees and address, name of
the branch, amount in taka, customer name, address, A/C number, Phone number and his signature. Then
he sands the form and the DD amount to cash counter.
Cash officer received the DD, entry to the register book and send it the accounts
department accounts officer entry to the both think for authority to signature. The
commission of the DD is minimum Tk. 20.
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4.6.2 DD. Paid without Advice Both Local and Foreign of JBL:-
300,000,000
250,000,000
200,000,000
TK.
150,000,000
100,000,000
50,000,000
0
2013 2014
Graph 4.1: DD Paid without Advice Both Local and Foreign of JBL From 2013 to 2014
DD cancelled
1,500,000
TK. 1,000,000
500,000
0
2013 2014
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4.7 Payment Order (P.O.)
At first the customer fill up the PO application form are as follows-name of the payee and address, name
of the branch, amount in taka, customer name, address, A/C number, phone number and his signature.
Then he sands the form and the PO amount to cash counter.
1000 Tk. 20 3 23
1000-100000 30 5 35
100000-499999 50 8 58
500000-above 100 15 115
3,000,000,000
2,500,000,000
2,000,000,000
TK.
1,500,000,000
1,000,000,000
500,000,000
0
2013 2014
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Graph 4.3: Payment Order Issued at JBL In 2013 to 2014
The facility of transferring money by mail is available to the customers having some sort of an account
with the Bank. There matter despite the amount to be transferred with small commission with the
remitting branch. It is an advice issued by a branch to another branch for crediting the specified amount to
the account of the payee maintain with them. It is a non negotiable instrument and generally is not
handed over to the customer rather sent through post office to the connected branch for credit to the
respect idea mount.
The procedures of remitting money through MT are almost same as the procedures of remitting fund
through DD. But there are some exceptions in this system-
In case of MT, the sender of money is not provided with the MT paper but a receipt. The branch
sends the MT paper under its own responsibility by mail to the MT receiving branch.
The commission for MT up to Tk. 10 for per 1000 and Tk 1 for every thousand above Tk 10,000.
The postal charge is Tk 10 for every MT issue and any amount of money.
The MT issuing branch has to send a secret message i.e. Test to the MT receiving branch. 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 branch codes the message by a particular
number consisting of different digits. After receiving the message, the paying branch decodes it
by using the predetermined techniques. This process is called test. If everything is Okayed, the
paying branch makes payment to the payee.
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M.T. Payable
3,000,000
TK. 2,000,000
1,000,000
0
2013 2014
Now the bank officer takes the amount and registers the entry book and send to the A/C section. A/C
section officer entry to the TT registers boom, serial number as a TT number and wrote the advice number
into the TT form, then send to the authority to signature and test the TT. The minimum commission of the
TT 20 and then 0.1% of the amount, govt. tax of the commission in 15% and telephone charge TK.30.
..+20+30
At first authority take the TT with the phone then he/she sent to the responding paper to the cash officer
the cash officer take the entry to the TT responding book. Debit to the Janata Bank A/C for sending
branch, consumer credit to the bank A/C and write the TT responding voucher.
The primary formalities that have to be maintained to remit money through TT are same as DD and MT.-
The commission for MT up to Tk. 10,000 is Tk 10 per TK 1000 and Tk 1 for every thousand
above Tk 10,000.
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Here a fee of Tk 20 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 branch. Rather the TT issuing branch
sends a TT advice through telephone, telegraph, Fax or telex to the paying branch. In sending
message, the branch keeps necessary secrecy.
Side by side, the TT issuing branch sends an advice to the head office of the bank.
After receiving the message, the paying branch tests to decode the message. If everything is
obeyed, then the branch makes payment to the payee. After that the branch sends an advice to the
head office to reconcile the accounts of both branches.
In case of TT, test is must for every issue and for any amount of money.
T.T. Payable
20,000,000
15,000,000
TK.
10,000,000
5,000,000
0
2013 2014
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4.10.1 Contribution of JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance
Earning in 2015 from Various Fields of Local Remittance Activities:
Table 4.2: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning in 2015
500,000
400,000
300,000
TK.
200,000
100,000
0
(D.D.) (M.T.) (T.T) (P.O.)
Graph 4.6: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning in 2015
After Analyzing the Above Data for Table 4.2 and Graph 4.6, we Find the Highest amount of Remittance
is Earned from TT at Jatrabari Corporate Branch, Dhaka and than the PO, MT, DD Department Come
Respectively.
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4.10.2 Contribution of JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance:
Table 4.3: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning from 2012
to 2015
800000
700000
600000
500000
TK. 400000
300000
200000
100000
0
2012 2013 2014 2015
Graph 4.7: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning from
2012 to 2015
The Graph 4.7 Shows that, JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning
of 2015 is Tk.7,28,316 which is Higher than inward Local Remittance is Tk.7,08,253 in 2014.
The clearing housing in the Janata Bank is locally operating scheduled banks for exchange of cheque,
drafts and other demand instrument drown in each other and received from their respective customers for
collection. The house meets at the appointment hour on all working days under the chairmanship of the
central bank or its agent as the case may be, and works within the regulations framed therefore on the
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basis of prevailing banking practice in Bangladesh clearing house sites at Bangladesh bank but where
there in no office on the Bangladesh bank Somali bank acts as agent of Bangladesh bank.
There are two types of clearing systems in Bangladesh bank such as:-
Internal clearing or inter branch clearing
External clearing on inter- banks clearing
The entire member if banks representative daily conduct and handover cheque drafts etc. passed, which
are drown upon them.
Dispatch includes all correspondence, letters, statement and returns and telegrams .this dispatch is also
known as mail. The dispatch is primarily divided into two categories.
The dispatch also divided into ordinary registered and local every correspondence should have an office
copy and one additional copy is also retained in the masts file of the office.
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Foreign TT payment and purchase of foreign drafts.
Preparation of foreign bill purchase (FBP).
Issuance of outward TT and FDD.
Issuance of proceed responding certificate (PRC).
Foreign collection, Bangladesh bank clearing cheque collection that comes from all the branches
of JBL.
Withdrawal from FCA account.
Encashment of TC and cash dollar and sterling pound.
Deduction of tax and VAT on behalf of Bangladesh bank.
Preparation of related statements including convertible taka accounts.
Balancing of account statement.
Compliance of audit and inspection.
Preparation of IBCA and IBDA and balancing of collection and other special assignment as
desired by department in charge.
Janata Bank maintains a strong network with the Exchange Houses worldwide for ensuing better
remittance services for its customers. The Bank having a network of 30 branches has established
remittance arrangements with a number of exchange houses to facilitate wage earners to remit their
money to Bangladesh. The following is the list of exchange houses having arrangement with al Janata
Bank Ltd.
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To facilitate sending money in Bangladeshi Taka directly, Janata Bank Limited has taka Drawing
Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis
may send their money in BDT (Bangladeshi Taka) through the branches / subsidiaries of Janata Bank
Limited and foreign banks/exchange companies. Remittance services are available at all branches and
foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances
are credited to the account of beneficiaries instantly or within shortest possible time.
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Other sources 5945.7 5288 5484.4 6272.1 6334.2
(SWIFT/Tele
x)
Grand Total 32745.9 38991 47329 57523.19 3945.89
Inward remittance from Bangladeshi nationals working abroad continued to play an important role in
strengthening the current account. Receipts on this sector increased gradually in every year from 2010 to
2014(June). The underlying reason was that Bangladesh Bank has simplified the approval policy of
drawing arrangements between foreign exchange houses and domestic bank. Janata Banks management
has taken this opportunity.
For quick payment of TTs issued by 4(Four) UAE branches of JBL Foreign Exchange Corporate Branch,
Dhaka( FECB, Dhaka), Laldighi East Corporate Branch, Chittagong(LDE, Ctg), Foreign Exchange
Corporate Branch, Sylhet ( FECB, Sylhet), Khulna Corporate Branch, Khulna, Barisal Corporate Branch,
Barisal & Rajshahi Corporate Branch, Rajshahi are nominated.
Commission for issuance of Taka Drafts from our UAE branches has been reduced and re fixed from
AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and payable at any
bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for issuances of Taka drafts at
UAE branches has been reduced irrespective of amount. 1% interest above the normal savings deposit
rate is offered to SB accounts receiving foreign remittance.
Inward foreign remittance covers purchase of foreign currency in the form of foreign TT, DD, MT, Bills
etc sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported
to exchange control department of Bangladesh bank prescribing 2 forms-
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Form C: Inward remittances equivalent to US$ 2000 and above are done by this. Here, the
remittance recipient declares the purpose of fund.
EXP form: Remittances received against export of goods from Bangladesh are done by this.
Export proceeds
Remittance by emigrant Bangladeshi nationals working abroad
III Commissions, fees etc. earned by local business people
Foreign loans and grants, donation and gift.
Foreign remittance
107,000.00
106,000.00
TK. 105,000.00
104,000.00
103,000.00
102,000.00
2013 2014
Graph 4.8: Comparing Between Foreign Remittance JBL from 2013 to 2014
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4.14 Foreign Demand Draft (F.D.D)
The foreign bank/exchange company on local bank usually issues foreign Demand Draft. It is an order to
pay a certain sum to a certain person or as his instruction, issued by the bank on its overseas branch or on
its correspondent bank. The demand draft is handed over to the purchaser who sends it to the beneficiary.
The beneficiary obtains payment on presentation to the bank on which the draft is drawn.
Issuance
sending for collection.
JBL issues the Foreign Demand Draft for the charges for TOEFL, SAT, GMAT, registration fee,
membership fee and also for the application or processing fee for die student who are interested to study
abroad. JBL opens Student Files to issue Foreign Demand Draft following the permission of Bangladesh
Bank. Before issuance of FDD, JBL asks the students to fill up the TM Form; which contains the
following particulars-
The TM Form is sent to Bangladesh Bank with photocopies of the Passport of the student FDD issued.
If a person has FC account with our branch and he received remittance from another bank then it is sent
for collection to the branch of the bank on which it is drawn. It is sent to JBL Head office through
Bangladesh bank clearing house.
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JBL General A/C Dr.
Commission Cr.
Charges A/CCr.
Party A/C _____________________________ Cr
FDD payable
800,000
600,000
TK.
400,000
200,000
0
2013 2014
Graph 4.9: Comparing Between Foreign Demand Draft (F.D.D) JBL from 2013 to 2014
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2012 2013 2014 2015
No. of 1961 2096 2490 2691
Transaction
Amount (TK.) 9,96,450 10,25,225 11,56,960 13,18,510
Table 4.6: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance from 2012 to
2015
1400000
1200000
1000000
800000
TK.
600000
400000
200000
0
2012 2013 2014 2015
Graph 4.10: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance from 2012 to
2015
The Graph 4.10 Shows that, JBL Jatrabari Corporate Branch, Dhaka in inward Foreign Remittance
Earning of 2015 is Tk.13,18,510 which is Higher than inward Foreign Remittance is Tk. 11,56,960 in
2014.
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Activites Percentage (%) Amount (TK.)
600000
500000
400000
300000
200000
100000
0 Inward Foreign Remittance
Earning
Graph 4.11: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance Earning in
2015
After Analyzing the Above Data for Table 4.7 and Graph 4.11, we Find the Highest amount of
Remittance is Earned from Western Union Network at Jatrabari Corporate Branch, Dhaka and than the
Foreign Remittance Activities Come Respectively.
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4.17 Outward Foreign Remittance
It means what are sent to the outside. The dispatch also divided into ordinary registered and local every
correspondence should have an office copy and one additional copy is also retained in the masts file of the
office.
JBL Jatrabari Corporate branch issues exporters retention quota account and resident & Non-resident
foreign currency deposit account. Before opening FC account the officer checked die following thing of
the prospective account holder-
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Particulars In cash In TC Total
The yearly quotas are mutually exclusive to each other. But for the FC A/C hold a special advantage is
prevailing there and that is the person can get TC for any amount as much as his FC A/C balance permits.
First, the party will fill up the form (purchase agreement) and sign it. Again he will sign the T/M form.
After that the banker will endorse the partys passport and ticket declaring the amount of foreign currency
issued in cash and in the form of TC. Then the following vouchers are passed:-
Then, entry is made in the TC issue register. Original copy of the purchase agreement, photocopy of the
ticket and passport are kept with the T/M form and the purchase agreement copy along with the TC,
passport and ticket are handed over to the party after getting after getting his received signature in the
TC issuing register.
4.19.1 Endorsement:
JBL endorses US Dollar in passports. To endorse US Dollar, the client has to apply in the prescribed from
(TM Form).The following entries are given in this regard:-
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countries are expected to reach $389 billion in 2014(June), a rise by 6.7 percent from $365 billion in
2013.
Remittances can generate a positive effect on the economy thorough various channels such as savings,
investment, growth, consumption, and poverty and income distribution. At the national level, remittances
contribute significantly to GDP.
At the community level, remittances create multiplier effects in the domestic economy, producing
employment opportunities and spurring new economic and social infrastructure and services.
Remittances have been found to rise when the recipient economy incurs a downturn in activity or
macroeconomic shocks owing to financial crisis, natural disaster, or political conflict. By making up for
foreign exchange losses due to these shocks, remittances may smooth consumption and thus play a part in
maintaining the economic stability of recipient countries.
In many countries, a large portion of remittances are invested in real estate, demonstrating both a desire of
migrants to provide housing to families left behind and a paucity of other investment instruments in the
recipient. Whether remittances are utilized for consumption or purchasing houses, or other investments,
they produce positive impact on the economy by stimulating demand for other goods and services.
Remittance is the life line of Bangladesh economy. Some 4.5m nonresident Bangladeshis are working
abroad, and sending home hard earned foreign currencies. It is believed that the actual number of
Bangladeshi migrants, both legal and illegal, would be close to 7.5 million. Non-resident Bangladeshis
(NRBs) sent $2.345 billion to Bangladesh between May and June of 2014, according to the Bangladesh
Bank statistics.
Banks drives the legal channel for remittance mobilization. Top 3 remittance receiver banks in market are
given in Table Following-
Sl. BANK June, 2014 (in USD Million)
1 Sonali Bank 92.69
2 Janata Bank 89.25
3 Agrani Bank 76.14
Table 4.10 : Comparing Between Local and Foreign Remittance from 2011 to 2014
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18
16
14
12
TK. 10
8
6
4
2
0
2011-12 2012-13 2013-14
Graph 4.12: Comparing Between Local and Foreign Remittance from 2011 to 2014
Most of the remittances sent to our country are for various livelihood purposes, such as disbursement of
Small loans, living expenses, business start up costs, medical treatment and funds for asset purchases.
During the last decade or so inward remittance has emerged as the backbone of many developing
countries. Officially recorded data for workers remittances to developing countries rose to US $ 342
billion in 2013 up 73 per cent from 2009. More than half of the increase from 2009 to 2013 in remittances
occurred in China, India, Mexico and Philippines.
In Bangladesh Inward foreign remittance through Janata Bank Ltd. up to November 2013 is Tk.57523.19
million. Foreign remittance from NBR is reached record high of Tk. 47329 million in 2012 against
Tk.38991 million in 2011 and continuing to play an important supporting role in strengthening the
economy of the county Janata Bank ltd.
By reducing lead-time, has ensured quick delivery of foreign remittance, an NBR branch has been opened
to serve exclusively Non-resident Bangladeshis through Speedy Money Remittance System with instant
to the beneficiaries. Anybody willing to remit foreign currency from any corner of the world can use wide
network of the bank. The remittance reaches to the beneficiary within 3 days without charging any
commission. Our worldwide network includes 4 branches in UAE, 2 exchange houses in Italy and
correspondent relationship with all the major Banks and all important trade centers of the world.
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Chapter 05
Findings & Recommendation
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5.2 Findings
Remittance is sending money from one place to another through banking or authorized channel. Banks
earn maximum portion of non interest income from remittance. Noninterest income of a bank depends on
largely, the overall qualities of services of the bank. So the precondition for a banks prospects to provide
remittance service in modern and developed way, relevant expertise of the employees and customers
satisfaction.
Remittance is important from the customers point of view, as it is easy, less expense, minimizing risk.
Remittance is important from the bankers point of view as Bank earn noninterest income, helpful for
other business and helpful for stable economic growth. Mainly the following parties are involved in
remittance:-
Inland remittance
Foreign Remittance
Mode of Local remittance serves by the Janata bank:- As a public bank janata bank serves in the
following mode of remittance:-
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Foreign remittance fluctuation needs to be stabilized.
Shortage of liquidity:-
The liquidity ratios measure the ability of a firm to satisfy its short Term obligations as they become due
for payment. In fact, liquidity is A Pre request for the very survival of a firm. The short-term Creditors of
the firm that funds of the firm that funds.
5.3 Recommendations
As an internee it is very difficult for me to give any recommendation with my little working experience
but I have tried my best to give best recommendations for the organization.
In collecting remittance, documentation must be easier for helping the clients for collecting
money.
Fund sufficiency and server correctness is required while providing services to the clients of NRB
Remittance.
The bank should arrange some more training programs for their officials. Quality training will
help the officials to enrich them with more recent knowledge of International Trade and financing
as well different banking activities.
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Reengineering its core business pattern.
JBL should utilize properly the Internship Program as one kind of promotional policy to
encourage its present and potential clients. Because, young generation plays a vital role in our
economy. To do so this bank should provide facilities to the internees through proper placement
and practical operations as well as job certainty to those who brings introduce themselves the best
performers in doing their particulars.
Proper arrangement of necessary equipments and materials needed in every desk of each
department for providing prompt service.
JBL can change their working environment by creating positive attitude to their employees &
they should change their interior decoration.
JBL should give more freedom to their branches for taking decisions & their head office should
take decisions more quickly
JBL should use group incentives so that employee can share their experiences & strength & can
work smoothly..
JBL should give the quick services to the customer by the help of modern technology.
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Chapter 06
Conclusions...
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Conclusions
As an internee of Janata Bank Ltd., I have truly enjoyed my internship from the learning and experience
viewpoint. I am confident that this three months internship program at Janata Bank will definitely help me
to realize my further carrier in the job market. As there are lots of local and foreign banks in Bangladesh
the Janata Bank Ltd., is promising commercial Bank among them. In this competitive market Janata Bank
has to compete not only the others commercial banks but also with the multinational Bank. Janata Bank
Ltd. is more capable of contributing towards economic development as compared with other bank.
The remittance has the great impact on national economy and the Janata bank as a part of serving
remittance service is also helps the country to economically stable. And this way the bank has also
achieve greater prospects in remittance service.
The bank also has some problem in remittance service. In order to increase remittance some strategy may
be taken by the bank.
Janata Bank Ltd. invested more funds in export and import business. It is obvious that the right thinking
of this bank including establishing a successful network over the country and increasing resources will be
able to play a considerable role in the portfolio of development.
During the course of my practical orientation I have tried to learn the practical banking activities to
realize it with my theoretical knowledge, which I have greathearted and going to acquire from various
courses of my BBA program. I have tried my best to complete this report. I hope this report will help to
improve the company development.
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References/ Bibliography
Books:-
Websites:-
Acosta, Pablo (2006) Labor Supply, School Attendance, and Remittances from International
Migration: The Case of El Salvador Policy Research Paper, World Bank, Washington, D.C.
http://www-wds.worldbank.org/external/default/WDSC
OntentServer/WDSP/IB/2006/05/17/000016406_20060517115015/Rendered/PDF/wps3 903. Pdf.
Adams, R.H. and J. Page (2005), Do International Migration and Remittances Reduce Poverty in
Developing Countries? World Bank, Washington,D.C.
http://siteresources.worldbank.org/INTAFROFFCHIECO/Resources/Migration_and_Remittances
. pdf.
www.google.com.
www.wikipedia.com.
www.nrb.com.org.
www.janatabanak-bd.com.
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Appendixes
Appendix 1
Highlight Of overall Activities at JBL 31 December 2014
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Appendix 2
Profit and Loss Account for the year ended 31 December 2014
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Appendix 3
Balance Sheet as at 31 December 2014
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[Source: Janata Bank Annual Report 2014]
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