Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Table of Contents
Chapter Contents Page
No.
Letter of Transmittal i
Student Declaration ii
Acknowledgement iii
Executive Summary iv
Acronyms 5
1.1 Introduction 07
1.2 Origin of the Report 08
1.3 Objectives of the report 08
Chapter-1 1.4 Scope of the report 08
1.5 Limitations of the Study: 09
Introduction 1.6 Analysis techniques 09
1.7 Required data 10
1.8 Methodology of the Study 10
1.9 Flow Chart of the Study 11
List of Figure
Contents Page No.
Serial No.
Figure 1.1 Flow Chart of the Study 11
Figure 3.1 Organizational Structure of Janata bank limited 23
Figure 3.2 CSR activities of Janata Bank Limited of 2010 23
Figure 3.3 Product of Janata Bank Ltd. 25
Figure 3.4 Function of Janata Bank Limited 26
Figure 4.1 How a bank perform its remittance activities 34
Figure 4.2 Local or Inland Remittance Activities of JBL 35
Figure 4.3 Sample of Demand Draft 36
Figure 4.4 Sample of Demand Draft advice Book. 39
Figure 4.5 The process of issuance of D.D. 40
Figure 4.6 Sample of Payment Order 45
Figure 4.7 Example Receipt (MT/TT) 49
Figure 4.8 This is the simple of FDD. 67
List of Graph
Contents Page No.
Serial No.
Graph 3.1 Compare between Operating Profit and Net Profit of JBL 27
Graph 3.2 Compare between Non- Interest Income and Interest 28
Income of JBL
Graph 3.3 Comparing Net Profit After Tax (NPAT) with four 28
Nationalized Commercial Bank of Bangladesh
Graph 3.4 Comparing Return on Investment (ROI) and Return on 29
Assets (ROA) with four Nationalized Commercial Bank of
Bangladesh
Graph 3.5 Comparing Earning per Share (EPS) with four 30
Nationalized Commercial Bank of Bangladesh
Graph 4.1 D.D. paid without advice both local and foreign from 2009 42
to 2010
Graph 4.2 Total D.D. Cancelled at JBL in 2009 and 2010 44
Graph 4.3 Total Payment Order Issued at JBL in 2009 and 2010 47
Graph 4.4 Total M.T. payable at JBL in 2009 and 2010 49
Graph 4.5 Total T.T. payable at JBL in 2009 and 2010 51
Graph 4.6 JBL RGSM Branch Dhaka Inward Local Remittance 53
earning in 2011
Graph 4.7 JBL Rajanigandha Super Market Branch Dhaka in Inward 54
Local Remittance earning from 2008 to 2011
Graph 4.8 Contribution of JBL in Foreign Remittance earning from 62
2004 to 2011
Graph 4.9 National Inward Remittance of Janata Bank Limited 63
Graph 4.10 National Inward Foreign Remittance of Janata Bank 63
Limited
Graph 4.11 National Inward Foreign Remittance of Janata Bank 64
Limited (Last 3 months of 2011)
Graph 4.12 National Inward Foreign Remittance of Janata Bank 65
Limited (Last 3 months of 2011)
Graph 4.13 Total F.D.D. payable at JBL in 2009 and 2010 67
Graph 4.14 JBL Rajanigandha Super Market Branch Dhaka in Inward 73
Foreign Remittance earning from 2008 to 2011
Graph 4.15 JBL Rajanigandha Super Market Branch Dhaka in Inward 74
Local Remittance earning in 2011.
Acronyms
JBL Janata Bank Limited
CEO Chief Executive Officer
MD Managing Director
CSR Corporate Social Responsibilities
A/C Account
DMCBL The Dhaka Mercantile Co-operative Bank Limited
NPAT Net Profit after Tax
ROI Return on Investment
ROA Return on Assets
EPS Earning per Share
HO or H/O Head Office
PO Pay Order
DD Demand Draft
TT Telegraphic Transfer
MT Mail Transfer
CIBTA Computer Inter Branch Transaction Account
IBCA Inter Bank Credit Advice
IBDA Inter Branch Debit Advice
TIN TAX Identification Number
IBC Inward Bills for Collection
OBC Outward Bills for Collection
CAD Cash Against Documents
GD General Diary
IDT Inter Data Transfer
ESS Education Savings Scheme
F.D.D Foreign Demand Draft
F.T.T. Foreign Telegraphic Transfer
SRC Speedy Remittance cell
Chapter-01
Introduction
1.1 Introduction
This report has a certain purpose to focus on the operations of Remittance of Janata Bank
Limited. Without any doubt Remittance catches the flash as it has great importance in the
balance of trade in economy. Banks plays a vital role in this discipline.
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
(Rajanigandha Super Market 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 Loan sanctioning and recovery system of a bank like Janata Bank
Ltd but in a few days I recognized that my branch deals with remittance more then any
other banking activities including loans. Working with remittance system in daily Banking
day turns my attention from loans to remittance which creates the background of the study.
This report is based on an internship program at Janata Bank Limited to gather practical
knowledge about banking activities. This is followed by practical experiences in the
Rajanigandha Super Market Branch Dhakaof Janata Bank Limited. Each intern must carry
out a specific project, in order to report on specific activity of the organization. Consequently
a report based on the projects is to be submitted to both the authority of Janata Bank Ltd and
the University. My topic for this internship report is Remittance Activities:Study on
Janata Bank Ltd. Janata Bank Ltd deals with almost every activities of Banking but
Rajanigandha Super Market Branch Dhaka has a special involvement with remittance. So it is
the main reason behind choosing this topic.
There were some problems while conducting the study. A whole hearted effort was applied to
conduct the study and to bring a reliable and fruitful result. In spite of this, there exist some
limitations, which acted as a barrier to conduct the study. The limitations were:
Time limitation: It was one of the main constraints that affected covering all aspects of the
study.Very short time frame- the report had to be conducted in a short duration (3 months).
Lack of Secondary Information: The Remittance data of Janata Bank Ltd. 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
In many case the relevant authorities are not helpful to provide information.
The organization maintains strict confidentiality about their financial and other
information. They are afraid of any type of information leakage to their
competitors. So there was always difficulty to have appropriate information from
them.
The main difficulty of the study was insufficiency of current information relevant
to the study.
Consolidated data related to the study were not given due to time shortage.
All required information was not available in any specific branch of the bank and
there was also limited opportunity to visit more than one branch.
Duration of the study was too short to find out the exact calculation from the
employee.
Scope of my study is so wide that analytical and comprehensive study is not
possible.
Lack of sufficient books, papers and journals etc.
Web site of the Organization isnt up to date to gather valuable information.
I have mainly focused on numerical data in preparing the report. Also I have used theoretical
portion as the demand of the report. Analyzing Remittance management of a bank, both
theoretical and technical knowledge are necessary for execution. Then everything with
accuracy, I have analyzed and made conclusion.
While conducting the study, sources were explored for primary information and data. But
hardly any updated data could be found. In the absence of updated information or data
dependence on secondary data has been inevitable. However, whenever possible primary data
has been used. Data were also collected by interviewing the responsible officers and from
some documents & statements printed by the Janata Bank Ltd. Janata Bank Ltd. also helped
me in collecting data providing books and Banks annual report.
a) Personal interview-Face to-face conversation and in depth interview with the respective
officer of the bank.
b) Practical work exposures on different aspects of this field.
Secondary:
A. Annual report of JBL.
B. Relevant documents related to the study as provided by the officers.
C. Periodicals published by Bangladesh Bank.
D. Different publications and relevant circulars.
E. Official website of JBL
F. Manuals of JBL
PLANNING
THE APPROACH
The Literature Review
Theoretical Consideration
METHODOLOGY
SUBMISSION OF THE
REPORT
PRIMARY SOURCES SECONDARY SOURCES
a) Face to face conversation with a) Annual report
Bankers b) Working papers
c) Office files
d) Selected Books
COLLECTING INFORMATION
ANALYZING
SUBMISSION OF THE
REPORT
Chapter-2
History of Banking in Bangladesh
The origin of banking, in the modem sense, is traced to Italy. The word Bank also seems to
have originated from Italy. The word Bank is supposed to have been derived from the
German word Banck, meaning a mound or heap (like a small hill), from which Italians
adopted Banco. Others believe that the word bank has been derived from Bancus or banc
or Banque which means a bench at which the money changers or mediaeval bankers used to
charge one kind of money into another and transact their banking business. The early banking
was, however, closely associates with the business of money-changing.
Bangladesh inherited its banking structure from the British regime and had 49 banks and
other financial institutions before the Partition of India in 1947. Bengal Bank, the first
British-Patronized modern bank established in India in 1784, had opened its two branches in
1873 in Sirajganj and Chittagong of Bangladesh region. Thereafter, another branch of Bengal
Bank was opened in Chandpur in 1900. A number of other branches of Bengal Bank were
opened in this region and some branches had been closed in Course of time. There were six
other branches of Bengal Bank in operation in the territory of Bangladesh until the Partition
of British-India in 1947 and these branches were at Chittagong (1906), Mymensing (1922),
Rangpur (1923), Chandpur (1924), and Narayanganj (1926).
Following the emergence of Pakistan in 1947, Stat Bank of Pakistan, the Central Bank of the
country, came into being in July 1948. Later, the National bank of Pakistan, a strong
commercial bank was set up in 1949. In all, 36 scheduled commercial banks were in
operation in the whole Pakistan until 1971. Pakistanis owned most of these banks and only
three of them namely, National Bank of Pakistan, Habib Bank Ltd. and the Australasia Bank
Ltd, had one branch of each in East Pakistan in 1949.During 1950-58, there other Pakistani-
owned banks, Premier Bank Ltd., Bank of Bhowalpur Ltd. and Muslim Commercial Bank,
had Opened their branch in East Pakistan. Four Pakistan-owned banks, the United Bank Ltd.,
Union Bank Ltd.(Note: the United Bank Limited and Union Bank Limited were renamed as
Janata Bank.), Standard Bank Ltd. and the commerce Bank Ltd. Conducted banking business
in the Province during 1959-1965.But all of them Had their headquarters in west Pakistan.
East Pakistan had only two banks Owned by local business groups white headquarters in
Dhaka. These were the Eastern Mercantile Bank Ltd. (Presently Pubali Bank Ltd.) and
Eastern Banking Corporation Ltd. (Presently Uttara Bank Ltd.) established in 1959 and 1965
respectively.
In the beginning of 1971, there were 1130 branches of 12 banks in operation in East Pakistan.
The foundation of independent banking system in Bangladesh was laid through the
establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127of 1972
(which took effect on 16th December, 1971). Through the Order, the eastern branch of the
Bangladesh Bank has been entrusted whit all of the traditional central banking functions
including the sole responsibilities of issuing currency, Keeping the reserves, formulating and
managing the monetary and credit policy, regulating the banking system, stabilizing domestic
and external monetary value, preserving the par value of Bangladesh Taka, fostering
economic growth and development and the development of the countrys market.
Janata Bank Limited is the 2nd largest state owned commercial bank in Bangladesh.
Immediately after the liberation of Bangladesh in 1971, the erstwhile United Bank Limited
and Union Bank Limited were renamed as Janata Bank.
The rate of growth and development of banking sector in the country was extremely slow
until 1983 when the government allowed to establish private banks and started
denationalization process: initially, the Uttara Bank in the same year and thereafter, the
Pubali Bank, and the Rupali Bank in 1986.
Modern banking system plays a vital role for a nations economic development. Over the last
few years the banking world has been undergoing a lot of changes due to deregulation,
technological innovations, globalization etc. These changes in the banking system also
brought revolutionary changes in a countrys economy. Present world is changing rapidly to
face the challenge of competitive free market economy. It is well recognized that there is an
urgent need for better, qualified management and better-trained staff in the dynamic global
financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is
facing challenges from different angles though its prospect is bright in the future.
Financial sector reforms to strengthen the regulatory and supervisory framework for banks
made headway in 2006 although at a slower than expected pace. Overall health of the
banking system showed improvement since 2002 as the gross Non-performing Loans (NPL)
declined from 28 percent to 14 percent while net NPL (less Provision) reduced to 8 percent
from 21 percent. This led significant improvement in the profitability ratios. Although the
Private Commercial Banks (PCB) NPL ratio registered a record low of 6 percent, the four
Nationalized Commercial Banks (NCB) position are still weak and showed very high NPL at
Bangladesh Bank
Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the
Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it
Bangladesh Bank with retrospective effect from 16 December 1971.
Janata Bank has contributed much to attain the achievement in all above sectors and boost the
economy of the country during the year under report.
Chapter-3
3.2.2 Values
Professionalism
Diversity
Growth
Values
Integrity
Dignity
Accountability
3.2.3 Objective
The bank plays a vital role in socio-economic development of Bangladesh
A) Agro credit.
B) Micro credit
C) SME Credit
D) Project loan (Industrial credit)
E) General Loan
Maximize profit through customer satisfaction and contributing in national economy.
Doing foreign exchange and trade to uphold the national interest and balance of trade
in favor of Bangladesh.
Blocking all kinds of illegal monitory activities with emphasis on money laundering
as per Govt. instructions and Bangladesh Bank Circulars.
Brining new technology based high quality customer service and products through IT
such as ATM. ONE STOP SERVICE, ONLINE BANKING. CREDIT AND DEBIT
CARD, AUTOMATED CLEARING HOUSE FACILITY.
Giving quality merchant bank service to the customer and maintaining healthy
portfolio.
Janata Bank Limited, the second largest commercial bank in Bangladesh, has an authorized
capital of Tk. 20000 Million, paid up capital of Tk5000 Million and reserve fund of Tk.10240
Million in 2010.
The Bank has a total asset of Tk. 345234 Million as on 31st December 2010. Immediately
after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union
Bank Limited were nationalized and renamed as Janata Bank Limited.
Janata Bank Limited operates through 872 (up to 2011) branches including 4 overseas
branches at United Arab Emirates. It is linked with 1198 foreign correspondents all over the
world.
The Bank is headed by the Managing Director (Chief Executive), who is a reputed banker.
The corporate head office is located at Dhaka with 35 (thirty five) Divisions.
It may be noted here that Janata Bank Limited has been working hard in improving the
customer services in recent times by introducing a number of IT-based reform measures
Chairman
Managing Director
General Manager
Manager
Executive Officer
Support Stuff
Knowledge building
25%
20%
Disaster mitigation
Number of Branches
Branches in Bangladesh 868
Rural Branches 486
Urban Branches 382
Overseas Branches 4
Total Branches 872
Table 3.1 Number of Branches
JBL offers both corporate and retail banking services with a strong focus on socio economic
development of the country. The bank typically provides short term working capital loan and
limited long term exposure. Moreover, JBL offers micro enterprise and special credit as well
as rural banking. Under corporate banking service JBL provides trade finance, project
finance, syndication etc. On the other hand, consumer loan, deposit scheme, remittance
facilities are served through retail banking. In 2010, JBL launched its merchant banking
operation to diversify its product portfolio.
Janata Bank
Limited Representative Receive and payment as the
representative of clients, selling
function of share and securities,
Transaction of foreign
currencies, information sharing,
Service function Consulting and others service
functions.
10000
8000
6000
4000
2000
0
2006 2007 2008 2009 2010
Operating Profit 4213 4963 7003 8578 12037
Net Profit 0 1681 3145 2982 4907
Year
The Graph-3.1 shows that, The Net Profit of JBL. up to December 2010 is Tk.4907
Million which is higher than Tk. 2982 Million in 2009. Where, in 2006 the net profit of
JBL is zero.
So we can say that, the growth of Net Profit as compared to Operating Profit is
respectable.
20000
Taka in Million
15000
10000
5000
0
2009 2010
Non Interest Income 4722 7283
Interest Income 15401.7 17684.9
Year
Graph 3.2: Compare between Non- Interest Income and Interest Income of JBL
The Graph 3.2 shows that, The Non Interest Income of JBL. up to December 2010 is
Tk.7283 Million which is higher than Tk. 4722 Million in 2009. So we can say that, the
growth of Non Interest Income as compared to Interest Income is respectable.
5000
4000
3000
2000
1000
0
Janata Rupali Agrani Sonali
Bank Ltd. Bank Ltd. Bank Ltd. Bank Ltd.
Net Profit Afret tax 4907 600.6 3516.8 2737.6
Name Of Nationalized Commercial Bank
Graph3.3: Comparing Net Profit After Tax (NPAT) with four Nationalized Commercial Bank of
Bangladesh
The Graph3.3 shows that, the Net Profit after Tax (NPAT) of JBL up to December 2010
is Tk.4907 Million which is higher than NPAT of Rupali Bank Ltd. (Tk. 600.6 Million),
Agrani Bank Ltd. (Tk. 351608 Million) and Sonali Bank Ltd. (Tk. 2737.6 Million).
16.00%
14.00%
12.00%
Percentage
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Janata Rupali Agrani Sonali
Bank Ltd. Bank Ltd. Bank Ltd Bank Ltd.
Return on Investment (ROI) 4.89% 11.22% 14.75% 9.39%
Retern on Assets (ROA) 1.45% 1.15% 1.33% 0.03%
Name of Bank
Graph 3.4: Comparing Return on Investment (ROI) and Return on Assets (ROA) with four
Nationalized Commercial Bank of Bangladesh
The Graph 3.4 shows that, the Return on Investment (ROI) of JBL up to December 2010
is 4.89% which is lower than the Return on Investment (ROI) of Rupali Bank Ltd.
(ROI-11.22%), Agrani Bank Ltd. (ROI-14.75%) and Sonali Bank Ltd. (ROI-9.39%).
Where, the Return on Assets (ROA) of JBL up to December 2010 is 1.45% which is
higher than the Return on Assets (ROA) of Rupali Bank Ltd. (ROA-1.15%), Agrani
Bank Ltd. (ROA-1.33%) and Sonali Bank Ltd. (ROA-0.03%).
After analyzing the chart we can say that the financial position of Janata Bank Ltd. is
batter than other Nationalized Commercial Bank of Bangladesh though ROI is lower.
100
90
80
70
60
Taka
50
40
30
20
10
0
Janata Bank Rupali Bank Agroni Bank Sonali Bank
Ltd. Ltd. Ltd. Ltd.
Earning Per Share 98.16 48.02 64.35 30.42
Name of Bank
Graph 3.5:- Comparing Earning per Share (EPS) with four Nationalized Commercial
Bank of Bangladesh
The Graph- 3.5 shows that, Earning per Share (EPS) of JBL up to December 2010 is
Tk.98.16 which is higher than EPS of Rupali Bank Ltd. (Tk48.02), Agrani Bank Ltd.
(Tk. 64.35) and Sonali Bank Ltd. (Tk. 30.42).
After analyzing the chart we can say that the financial position of Janata Bank Ltd. is
batter than other Nationalized Commercial Bank of Bangladesh.
Chapter-04
Remittance Activities:
Study on Janata Bank Ltd.
Now a day a modern banker must have to perform a number of ancillary services, besides
performing the two essential functions of accepting deposits and investing its funds.
Remittance of funds can be considered as one of the most important ancillary service
provided by a Bank. With a network of the branches spread over the entire country banks are
eminently suitable institutions for the remittance of funds from one place to another. Bank
remittance is safe, swift, inexpensive, and simple. Bank takes the risk of theft or loss of
customers money in exchange of a very little commission. Again, the reserve of foreign
remittance plays a great role in national economy. With various types of accounts
maintaining in international branches and coordinating international banks these foreign
currencies are being carried sending by non-resident Bangladeshis.
Remittence
activites at
JBL
Local
Foreign
\Inland
Remittance
Remittence
Local or inland remittance department of JBL performs an important role to send money from
one place to another branch within the country.
We can easily understand the remittance activities in a Bank by the following
Place-2
Place-1
4.
1.
Beneficiary
Customer
(Money Receiver)
(Money Sender)
Go to Pay
Remittance
Money
department
2. 3.
Issuing Branch Paying Branch
Order Send (Getting order from
(Taking money with
bank commissions) issuing Branch)
By this way money is sent from one branch to another branch within the country. Here in
place-1; any customer pays money with bank commission at the Issuing Branch and
Beneficiary collect money from Paying Branch at Place-2.
In this case, the Issuing Branch only sent a written document to the Paying Branch in order to
pay the money to the Beneficiary.
Money is sent from one branch to another branch within the country by following way-
Bank remittance may be categorized as-
Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
Payment Order (PO)
Traveller Cheques.
Demand
Draft (DD)
Inward Payment
Remittance Order (PO)
Mail Transfer
(MT)
Local or Traveler
Inland Cheques.
Remittance
Activities of Telegraphic
JBL Transfer (TT)
Demand
Draft (DD)
Mail Transfer
(MT)
Traveler
Cheques.
Here, I am now explaining in brief the process and activities of local remittance in JBL and
JBL Rajanigondha Super Market Branch, Dhaka as well.
On demand pay to .. Or
Order the sum of . Taka(..)
for value received.
After analyzing this sample Demand Draft we identify the following feature-
1. Serial Number (No. D.D. 012345)
2. Branch Name
3. Amount of money (Numerical)
4. Date of Time
5. Name of Beneficiary
6. Amount of money (in ward)
7. Two Officer signature (with P.A. number)
Conformity and inconformity between Cheque and Demand Draft.
Dr. : Cash A/c Dr. : Partys A/C , Cheque Dr. : Partys A/C [Form-
A/C- No.]
Cr. : Income A/c ; Cr. : Like as Cash
Commission on Cr. : Like as cash
Remittance [Partys app. To be
attached with vouchers]
For any amount of DD issued, a relative DD Advice and sent to paying branch where the
Advice converted into Voucher.
Draft advice Book normally printed by special ink and it have a serial number.
From
Originating Br. Name of the Region of Originating Br. Originating Date
Originating Br.
To
Responding Br. Name of the Region of Responding Br. Transaction Code
Responding Br. Code
Teller will receive the cash against the Demand Draft including the Charges & Vat as per
schedule of charges in case the party pays in cash. Teller will put the received stamp on the DD
application & prepare IDT for the entire amount. DD application and IDT to be submitted to the
Remittance Department for issuance of the DD.
For Issuance of DD against cheque or partys instruction, respective account will be debited after
verification of customers signature by the Cash Department.
The Demand Draft shall be prepared Branch wise controlling number will be given on the draft
besides the printed numbers putting an oblique (/) in between. The amount of draft will be
protecting graphed. The description of the DD will be recorded in the DD issuing Register.
The draft number should be written on the voucher & DD Application form.
Draft should be signed jointly by the GB Head & another authorized signatory with P.A. number.
Test is required for money transfer value of Tk.50,000.00 or over. The tested message will be
sent to the paying branch through Fax or E-Mail. Test no. should be written on the CIBTA and on
the face of the Demand Draft in Red Ink.
The CIBTA should be prepared in triplicate. Original to be sent to the drawee branch. Second
copy for the branch accounts department and the third copy should be retained by the Remittance
Department (in the CIBTA book) for ready reference.
Concern Officer must ensure that acknowledgement is obtained from the client or his authorized
representative on the counter folio and issuing register.
b) Clearing cheque and cheque on the branches will be paid or returned unpaid the same day.
Other Demand Drafts entered in the register will be presented or payment to the drawee
through the cash department.
c) On realization the proceeds together with the overdue interest, if any Demand Draft will be
credited to the purchasing offices in the Janata Bank General Account sending Transfer
Responding, Advises (TRA) and reported to Head Office on schedule. Unpaid DDR's will be
returned to the purchasing offices along with the objection Memo.
If the amount of Dr. : Bills Payable A/C , D.D. Dr. : Sundry Assets A/C. D.D.
draft is pain in cash Payable Paid W/A
If the amount of Dr. : Bills Payable A/C, D.D. Dr. : Sundry Assets A/C , D.D.
draft is pain by Payable paid W/A
clearing House
Cr. : CIBT A/C Local Office Cr. : CIBT A/C Local Office
If the amount of Dr. : Bills Payable A/C, D.D. Dr. : Sundry Assets A/C , D.D.
draft is pain by Payable paid W/A
transfer (from
Cr. : Partys A/C or CIBT A/C Cr. : Partys A/C or CIBT A/C
Account)
Here, we find that, sometime Drawee Branch is obliged to pay money (Taka) before receive
draft advice. In this case this money is provided from Sundry Assets A/C, D.D. paid W/A.
When that type of advice will get then following voucher will be passed-
2000
1500
1000
500
0
2009 2010
D.D. paid without advice (Local) 1399.48 1580.965
D.D. Paid without
1567.6 616.95
advice(Foreign)
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Sundry assets; page-147
Graph 4.1: D.D. paid without advice both local and foreign from 2009 to 2010
After analyzing the Graph-4.1we find that in 2010 JBL paid 1580.965 million (Taka)
before receiving D.D. advices which is higher than 1399.48 million in 2009.
Duplicate pay order may be issued on receipt of written request of the purchaser along
with GD at local police station. Signature of the purchaser should be verified from the
original application.
Issuing branch should obtain an indemnity bond on a non judicial stamp paper or
adhesive stamp for the adequate value in presence of at least two witnesses. The
Branch will thereafter write to Head Office for their approval to issue duplicate
payment order.
The Head office on receipt of the request from the issuing branch will immediately
issue caution circular from Cash Against Documents (CAD) to all the branches
regarding loss of the pay order asking them to record stop payment. The Head Office
will thereafter issue clearance to the issuing branch for issuing a duplicate draft in lieu
of original reported lost.
On receipt of clearance from the Head Office, the issuing branch will issue a pay
order clearly the words DUPLICTAE ISSUED INLIEU OF
ORIGINALPAYMENT ORDER-. DATED------ in bold letters on the top of the
front page of the payment order. The charges for issuance of duplicate pay order
should be realized from the client.
A note to this effect is made on the original application on form and on the Pay Order
Issued Register.
1400000
1200000
1000000
800000
Taka
600000
400000
200000
0
2009 2010
D.D. Cancellation 456725 1361711
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Sundry assets; page-147
The Graph 4.2 shows that, the withdrawal of Demand Draft (D.D.) at JBL has been
increased Taka 13,61,711/- in 2010 than Taka 4,56,725/- in 2009.
Bank's payment order is an instrument which contains an order for payment to the paid to
effect local payment whether on behalf of the Bank or its constituents. In the beginning stage,
PO was issued only to effect local payments of Bank own obligations. But, at present, it is
also issued to the customers whom they can purchase to deposit as security money or earnests
money. The Bank's payment orders are in the form of receipts and issued by joint signature of
two officials. It ensures payment to the payee as the money deposited by the purchaser of PO
is kept in the Bank's own A/C named "Payment Order A/C". Payment of this instrument to be
made from the branch it has been issued. It is not transferable and, therefore, it can only be
paid to: -
Charges of P.O.
Officer Manager
2600
2400
2200
2000
2009 2010
Payment Order Issued 2152.28 2442.26
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
Graph 4.3- Total Payment Order Issued at JBL in 2009 and 2010
The Graph 4.3 shows that, the issuance of Payment Order (P.O) at JBL is increased
Taka 2442.26 Million in 2010 than Taka 2152.28 Million in 2009.
4.7.2 Duplicate PO
As Bank's Payment Order is not transferable, Duplicate thereof is issued to the purchaser
without obtaining letter of indemnity provided they confirm in writing that the originals have
been lost and that these will be returned to the Bank whenever traced.
Duplicate pay order may be issued on receipt of written request of the purchaser along
with FIR/GD at local police station. Signature of the purchaser should be verified
from the original application.
Issuing branch should obtain an indemnity bond on a non judicial stamp paper or
adhesive stamp for the adequate value in presence of at least two witnesses. The
Branch will thereafter write to Head Office for their approval to issue duplicate
payment order.
The Head office on receipt of the request from the issuing branch will immediately
issue caution circular from CAD to all the branches regarding loss of the pay order
asking them to record stop payment. The Head Office will thereafter issue clearance
to the issuing branch for issuing a duplicate draft in lieu of original reported lost.
On receipt of clearance from the Head Office, the issuing branch will issue a pay
order clearly the words DUPLICTAE ISSUED INLIEU OF
ORIGINALPAYMENT ORDER-. DATED------ in bold letters on the top of the
front page of the payment order. The charges for issuance of duplicate pay order
should be realized from the client.
4 The Payment Order is cancelled by tearing off signatures thereon and a note to this effect
is made on the application form and on the Register. Tee entry is to be reversed.
5 The cancelled Payment Order should be attached with the debit voucher.
6 If the Payment Order is placed through clearing by the purchasers Bank, in that case the
Collecting Banks endorsement must confirm that purchasers account is credited.
Normally the Mail is given Tk. 25/- for the amount Tk. 50,000/- and above. Below 50,000/-
there is no any Mail Charge. The commission charged for MT is given below
Date: ......................
Payees Name: ................................................................
Branch Name: ...............................................................
Amount: ................................... Exchange...................
Commission: ........................ Postal Charge: .............
M.T. Paybale
4000000
3000000
Taka
2000000
1000000
0
2009 2010
M.T. Paybale 1507414 3647007
Year
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
The Graph 4.4 shows that, the total M.T. Payable at JBL is increased Taka 36, 47,007/-
in 2010 than Taka 15, 07,414/- in 2009.
Telegraphic transfers are affected by telegram, telephone, or telex as desired by the remitter.
Transfer of founds by telegraphic transfer is the most rapid and convenient but expensive
method. For this, telegraphic technologies need to be available in all the areas. In this case,
the issuing branch sends a message telegraphically to credit the specified amount to the
beneficiary through his A/C maintained with them or by issuing TT, PO, if A/C is not
maintained by the beneficiary, Telegraphy message may be codes but must be tested. Paying
branch will decode the TT being satisfied on the contents will make payment by debit to
issuing branch entering the TT into TT Register and preparing a credit voucher for credit to
the payees A/C. But, for big amount of TT or in case of any doubt, confirmation must be
obtained before making payment.
T.T. Payable
80000000
Taka
70000000
60000000
50000000
2009 2010
T.T. Payable 62465871 73011561
Year
Source- Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
Table 4.1: JBL RGSM Branch Dhaka Inward Local Remittance earning in 2011
Amount
500000
400000
300000
Taka
200000
100000
0
DD MT TT PO
Amount 72832 21849 473405 160230
Graph 4.6 : JBL RGSM Branch Dhaka Inward Local Remittance earning in 2011
After analyzing the above Table 4.1 and Graph 4.6, we find that the highest amount of
remittance is earned from TT at RGSM Branch and then the PO, DD and MT
departments come respectively.
Table 4.2-: JBL Rajanigandha Super Market Branch Dhaka in Inward Local Remittance
earning from 2008 to 2011
400000
300000
200000
100000 9987 11015 10096 10830
0
2008 2009 2010 2011
No. of Transaction 9987 11015 10096 10830
Amount 682450 712054 708253 728316
Year
Graph 4.7 : JBL Rajanigandha Super Market Branch Dhaka in Inward Local
Remittance earning from 2008 to 2011
The Graph 4.7 shows that, Inward local remittance through JBL Rajanigandha Super
Market Branch Dhaka. up to December 2011 is Tk.728316/- which is higher than inward
foreign remittance is Tk. 708253/- in 2010. Inward local from JBL Rajanigandha Super
Market Branch Dhaka reached record high of Tk. 712054 million in 2009 against
Tk.682450 million in 2008 and continue to play an important supporting role in
strengthening the economy of the county Janata Bank ltd.
1. 1st clearing house sits at 9.30 a.m. for delivery and receipt of the instrument from each
other.
2. Same Day Clearing House sits at 11.00 a.m. for quick settlement of payment of the
instruments of Tk.5.00 lac and above drawn on other local branches within the 5 k.m. area.
3. 1st Return House for the same day clearing sits within the transaction hours i.e. by 3.00
p.m.
4. 2nd Clearing Return House sits for return of the instruments after 5.00 p.m.
At present central bank provides an Automated Clearing House to settle the daily transactions
against receipt of instruments through deposit slips for collection of funds through the use of
most modern electronic terminals/computer situated at banks who are members,
representatives or associates of the clearing systems. The net dues receivable or payable
arrived at after off-setting the total amount of the instruments delivered, are adjusted through
the respective banks clearing account maintained with the Central Bank or its agent.
Outward clearing:
Messengers of different branches bring instruments drawn on other Banks to the clearing
section of Local Office.
Bills Section of JBL Local Office also sends the instruments drawn on other Banks to the
clearing section for collection.
The clearing stamps are affixed on the instruments and endorsed
The particulars of these instruments are entered in the main schedule of banks through
NIKASH22 software and inserted in floppy disc.
The diskettes along with the instruments are carried to the clearinghouse. After going
there the concerned officials of JBL gives the instruments to the representative of
respective banks.
Claims of JBL on other banks are set off by Bangladesh Bank through debiting other
banks account and crediting JBL account.
This function is done in the first house
Inward Clearing:
Dr. :Respective Client (voucher cheques/other instruments - for Honored Figures.)
Dr. : Other Branch CIBTA (responding)
Dr. : Head Office (Balance with Bangladesh Bank A/c) (if it is on line posting)
Cr. : Clearing Adjustment A/c
The instruments drawn on JB are received from other banks in the clearinghouse.
On the era of globalization and free economy, business has changed its shape and has spread
all over world. Now a day, banking business has not been limited only within the commercial
banking; it spread with different types of money and finance related business. Investment
banking, merchant banking as a brokerage house, syndicated business, correspondent
banking, foreign trade, currency dealing etc. There is no national or geographic limitation for
the business. As the Bangladeshi citizens/ nationals are migrating all over the world, created
scope/ opportunity for money transfer business as a global phenomenon. In the post 9/11 era,
national and international regulators are more vigilant against Anti Money Laundering
(AML) and Anti Terrorist Financing, resulting appreciation for fund transfer through Bank
and registered Financial Institutions.
Previously, the educated and well-off class of the remitters (Expatriate Bangladeshis) used to
send money through banking as well as illegal channels, but the uneducated and so called
under-privileged class of the remitters generally does not have access to banking channel and
used to send money through illegal channel. Due to high service charges, the underprivileged
do not maintain account with schedule banks and cannot use the money transfer facility of the
banks. This unique characteristic of the remitters creates the scope of operation for Financial
Intermediates basically Exchange House Operations.
Importance: Demand for inward remittance has immense importance, because remittance, the
portion of international migrant workers earnings sent back from the country of employment
to the country of origin, plays a central/crucial role in the economy of our country. At the
same time with micro economic development process, as remittance often provide a
significant source of foreign currency, increase national income, finance import and
contribute to the balance of payment improvement. These wage earners' remittance helps
building external sector viabilities of our country. Inward remittance is relatively less volatile
source of foreign exchange. Expatriate Bangladeshi workers remittance contributes
immensely to the economy with strong positive impact on growth, employment and Balance
of payment.
Currently, inward remittance is higher than the combined flow of foreign aid disbursement
and foreign direct investment. Though increasing, the current growth rate of remittance is still
much lower than the total flow of migrants from Bangladesh.
Table 4.3: Web-based Foreign Remittance Instant/Spot Cash Payment System (EFT).
In the case of in-ward foreign remittance the foreign currency is entered in Bangladesh.
Previously for transfer foreign currency the customer was must have an Account in Bank like
- Janata Bank Ltd. But in the present time a customer can get foreign currency without having
an Account in the respective branch or any Bank like- Janata Bank Ltd.
Figure in Million
Table 4.4: Country wise Foreign Remittance of JBL from 2004 to 2009
The Graph-4.8 shows that, Inward foreign remittance through Janata Bank Ltd. up to
December 2010 is Tk.52640 million which is lower then inward foreign remittance is Tk.
56,190 million in 2009. Foreign remittances from NBRs reached record high of Tk.
45924 million in 2008 against Tk.36788 million in 2007 and continue to play an
important supporting role in strengthening the economy of the county Janata Bank ltd.
1000000
802270
800000 738773
600000 616442
400000 451890
200000 52640
56190 45924
0 36788
2010
2009
2008
2007
*Source: Janata Bank Ltd. ; Annual Report 2010; Directors Report-Foreign Remittance; page-78
Percentage
10.00%
8.12%
7.60% 7.45%
8.00%
6.56%
6.00%
4.00%
2.00%
0.00%
2010 2009 2008 2007
Percentage 6.56% 7.60% 7.45% 8.12%
*Source: Janata Bank Ltd. ; Annual Report 2010; Directors Report-Foreign Remittance; page-78
The above Graph 4.9 & Graph 4.10 shows that, Inward National Foreign Remittance up
to December 2010 was 802,270 Million and Inward Foreign Remittance through Janata
Bank Ltd. was 52640 Million, which was 6.56% of total countrys remittance. In 2009,
Inward National Foreign Remittance was 738773 Million where Inward Foreign
Remittance through Janata Bank Ltd. was 56190 Million, which was 6.56% of total
countrys remittance. In 2008 and 2007 Inward National Foreign Remittance were
616442 Million and 451890 Million respectably where Inward Foreign Remittance
After analyzing the above chart, we find that the achievement of JBL in attracting
foreign remittance is increased year by year except 2009 and 2010 due to economic
crises. But on the contrary, the percentage of foreign remittance through JBL is
decreased year by year as compared to countrys foreign remittance.
1144.38
1200 1039.48
1000 908.79
800
Million U.S. $
600
400
0
October November December
National earning 1039.48 908.79 1144.38
Janata Bank Ltd. 71.2 58.62 82.52
Months
Graph 4.11- : National Inward Foreign Remittance of Janata Bank Limited (Last 3 months of 2011)
7.21%
7.40%
7.20% 6.85%
Million U.S. $
7.00%
6.80% 6.45%
6.60%
6.40%
6.20%
6.00%
October November December
Percentage 6.85% 6.45% 7.21%
Months
Graph 4.12 : National Inward Foreign Remittance of Janata Bank Limited (Last 3 months of 2011)
The Graph 4.11 & Graph 4.12 show the comparison between inward foreign remittance
through Janata bank Ltd. and inward national foreign remittance of last three months
[October, November, and December] in 2011.
After analyzing the above charts and tables, we find that the achievement of JBL in
attracting foreign remittance is increased month by month in 2011. And on the
contrary, the percentage of foreign remittance through JBL is also increased month by
month as compared to countrys foreign remittance.
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.
Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System
which enables beneficiaries to receive their money within shortest possible time. The
beneficiary also gets information of remittance through automated S.M.Sgt.s a secured, easy,
cost effective and speedy way of remittance for the remitter. Janata bank Ltd. has signed an
agreement with Western Union Network to facilitate wide range of remittance of the globe.
Both the organizations make it possible to receive the money from about 300,000 locations of
200 countries instantly with prevailing mutual mechanism and workforce.
The Foreign Remittance department of Janata Bank Ltd. is equipped with a number of
foreign remittance facilities.
Following are the types of inward foreign remittance facilities offered by Janata Bank
Ltd.; Rajanigandha Super Market Branch Dhaka
FDD means Foreign Demand Draft. FDD is used for both Inward and Outward foreign
remittance transfer. These types of inward FDD was issued in past when no online
transaction remained. Presently this is not popular due to its difficult procedure and more
time consuming.
In the foreign country, there are several agents who receive money on behalf of Janata Bank
Ltd. and send this money in Bangladesh (Janata Bank Ltd.) via FDD.Some agents are-
Tk. = 100,000/-
Officer Officer
When this type of FDD is collected by the Janata Bank Ltd. Rajanigandha Super Market
Branch, Dhaka then banker will verify the genuineness of the Advice by way of verifying the
number and signature. If the copy of FDD is verified successfully then the money is
transferred to the customers Accounts.
F.D.D. Payable
1000000
Taka
0
2009 2010
F.D.D. Payable 728779 601894
Years
*Source: Janata Bank Ltd. ; Annual Report 2010; Bills Payable; page-153
SRC means Speedy Remittance Cell which is now most popular transaction system due to
less time consuming. This type of transaction make with the help of internet. Its also called
on-line banking system.
Janata Bank Limited has a network of 872 domestic branches in Bangladesh covering the
entire country including the rural areas. 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 with the help of SRC Speedy Remittance Cell.Janata Bank Limited has correspondent
banking relationship with all major banks located in almost all the countries/cities. Expatriate
Bangladeshis may send their hard earned foreign currencies through those banks or may
contact any renowned banks nearby (where they reside/work) to send their money to their
dear one in Bangladesh.
In this case, the foreign agent or Banks or Janata Banks foreign branch collect remittance
and send remittance to the Head Office (H/O) of Janata Bank Ltd. 110 Motijheel C/A
Dhaka-1000 via internet. They send an E-mail report with some information.
1. SRC- to Account
2. SRC- to Instant/Spot cash.
3. SRC- TTR/ Payment Order (P.O.)
Example:
Suppose Janata Bank Ltd. Abu Dhabi Branch send a SRC- to Account to the Janata Bank
Ltd. Head Office (H/O), 110 Motijheel C/A Dhaka-1000. The beneficiarys (receiver)
responding branch is Rajanigandha Super Market Branch Dhaka-1206. The Beneficiarys
Account No. is 100023-0 and the amount of taka is Tk. 100,000/-.
When the H/O receives this E-mail report from Abu Dhabi Branch then H/O verify this report
and send this report to the beneficiary branch (Rajanigandha Super Market Branch) of Janata
Bank Ltd.
Remittance officer of Rajanigandha Super Market Branch will receive that report from H/O
and transfer the amount of money to the beneficiary Account. Then the beneficiary withdraws
this money by cheque.
After receiving the E-mail massage from responding foreign agents the Head Office verifies
this report and then send this report to the beneficiary branch of Janata Bank Ltd.
Example:
Suppose Janata Bank Ltd. Dubai Branch send an SRC- to Instant/Spot cash to the Janata
Bank Ltd. Hade Office (H/O), 110 Motijheel C/A Dhaka-1000. The beneficiarys (receiver)
responding branch is Rajanigandha Super Market Branch (RGSM) Dhaka-1206. The
When the H/O receives this E-mail massage from Dubai Branch then H/O verifies this report
and sends this report to the beneficiary branch (Rajanigandha Super Market Branch) of Janata
Bank Ltd.
Rajanigandha Super Market Branchs officer receives the massage with a MTCN. The officer
will print the massage and wait for beneficiary.
When the beneficiary comes to the bank then he/she will ask to the officer he has an SRC- to
Instant/Spot cash.
Then the officer of RGSM Branch will provide a form to fill-up. In this form the beneficiary
will provide following information-
Suppose Mr. S.M. Razib lives in Dubai. He wants to send money to his father by Janata Bank
Dubai Branch. But the problem is that his father has no Account in Janata Bank Ltd. But his
father has an Account in ABC Bank Ltd.
In this case the JBL Dubai Branch receives the money and sends SRC- TTR/ Payment
Order (P.O.) massage to Janata Bank Ltd. Head Office (H/O), 110 Motijheel C/A Dhaka-
1000 to provide money on account of Mrs. Habib & Sons A/C No.- 2000010-1 at ABC
Bank Ltd. Rajanigandha Super Market Branch.
When the H/O receives this E-mail massage from Dubai Branch then H/O verifies this
massage and the H/O may send this massage to the nearest branch of ABC Banks Ltd.
Rajanigandha Super Market Branch. Suppose the nearest branch of ABC Bank Ltd is Janata
Bank Ltd. Rajanigandha Super Market Branch.
When the H/O of JBL sends the SRC massage to the Janata Bank Ltd. Rajanigandha Super
Market Branch then the officer of RGSM Branch will receive the massage and issue a
Payment Order against the ABC Bank Ltd. Rajanigandha Super Market Branch with the
beneficiarys Account Name and A/C number.
Then Janata Bank Ltd. Rajanigandha Super Market Branch will send the Payment Order
(P.O.) to the ABC Bank Ltd. Rajanigandha Super Market Branch and ABC RGSM Branch
will collect money via Clearing House and then transfer the money to the beneficiary
Account.
In this case following voucher will be passed by Janata Bank Ltd. Rajanigandha Super
Market Branch-
Debit : CIBTA
Credit: Bills Payable A/C, Payment Order (P.O.) issue.
Western Union is one of the most popular money transfer network in the world. About 40%
transection of foreign remittance is done by Western Union.
So for better understand of this process here I explain about Western Union-
It is easy to receive money in person, just go to any of worldwide Agent locations .One can
find an Agent location in a variety of places, like Janata Bank Ltd. Rajanigandha Super
Market Branch, other banks, travel agencies, post offices, airports, and currency exchange
offices etc.
STEP 2: Identify
Simply give the Agent beneficiarys identification card (Like National I.D. Card or Passport)
STEP 3: Sign the Receipt
Review and sign the receipt that the Agent gives.
STEP 4: Receive the Money
If all the information is correct the Agent will give cash memo and the beneficiary will
collect money from the cash counter.
1000000
500000
0
2008 2009 2010 2011
No. of Transaction 1961 2096 2490 2691
Amount 996650 1025250 1156960 1318510
Year
Graph 4.14: JBL Rajanigandha Super Market Branch Dhaka in Inward Foreign Remittance earning
from 2008 to 2011
The Graph-4.14 shows that, Inward foreign remittance through Janata Bank Ltd.
RGSM Branch up to December 2011 is Tk.1318510 which is lower then inward foreign
remittance is Tk. 1156960 in 2010. Foreign remittances from JBL RGSM Branch
reached record high of Tk. 10252520 in 2009 against Tk.996650 in 2008 and continue to
play an important supporting role in strengthening the economy of the county Janata
Bank ltd.
300000
200000
100000
0
Placid
SrC-to ARC- Western Xpress
SRC- IME Spot Express NBL pay
Instant/S TTR/Pay Union money
Account Cash Spot out
pot cash ment Network etc.
Cash
Taka 237332 303257 39555 527404 92296 65926 19778 32962
Graph 4.15: JBL Rajanigandha Super Market Branch Dhaka in Inward Local Remittance
earning in 2011.
The Table-4.8 & Graph 4.15 show that , The inward foreign remittances come to RGSM
Branch of JBL from Western Union Network that is 40% and from the system of SRC
(to instant spot cash) is in the second position in this regard which is 23%. Then the
others come chronologically.
In Janata Bank Ltd. following branches are only responsible and involved with outward
foreign remittance activities.
a) Local Office Dhaka.
b) Foreign Exchange Branch, Bitul-Mukaram Dhaka.
c) JanataBovon Corporate Dhaka.
The Foreign Remittance department of Janata Bank Ltd. is equipped with a number of
foreign remittance facilities. Following are the types of outward foreign remittance facilities
offered by Janata Bank Ltd. -
1. Issuance of Foreign Demand Draft (F.D.D)
2. Issuance of travelers Cheques (T.C.)
3. Issuance of foreign T.T (Telegraphic Transfer)
4. Disbursement of the cash of incoming F.T.T.
But Janata Bank Ltd. Rajanigandha Super Market Branch is not involved with these types of
activities.
Chapter-05
Strengths:
Janata Bank is a modern public Bank. It has more capacity to adopt new technology when the
environment will be changed. This JBL Rajanigondha Super Market Branch, Dhaka as well
as Janata Bank Ltd. has various types of strength elements. Such kind of strength are
representing below:
Second Largest bank of the country.
Wide network of 861 Branches across the countries.
Holds a sound reputation in the banking industries.
Sponsoring by the government.
Personalized services.
Sending money through Janata Bank Ltd is an easy and inexpensive process
Well connected distribution channel from Head Office to all branches.
Healthy correspondent relationships with foreign banks.
Provide a record business in international trade and remittance.
Majority of the branches run with computers under centralized network.
Weakness:
A weakness is a limitation or deficiency in resources, Skills and capabilities that seriously
impedes effective performance.
When I study in JBL Rajanigondha Super Market Branch, Dhaka some problem surface to
me those internal problems mention in the below:
Discouraging small entrepreneurs
JBL provides clean Import Loan to most of its solvent clients. But they usually do not
want to finance small entrepreneurs whose financial standing is not clean to them.
Absence of strong marketing activities
JBL currently don't have any strong marketing activities through mass media e.g.
Television. TV ads play vital role in awareness building. JBL has no such TV ad
campaign. Although they do a lot of CSR activities compared to other banks.
Not enough innovative products
In order to be more competitive in the market, JBL should come up with more new
attractive and innovative products. This is one of the weaknesses that JBL is currently
passing through but plans to get rid of by 2010.
Lack of Proper Motivation
The salary at JBL is very decent, but it lacks other sorts of motivation. Incentives such
as bonuses are given for acquiring a particular figure, but all in all these are the only
motivational factors.
Outdated Software and Hardware at JBL Rajanigondha Super Market Branch.
Some of the PCs in this branch have very outdated hardware which is very slow and
affects the customers and hence the performance of the bank as a whole. The software
themselves are pretty old Flexcube is from 2003, Microsoft Office XP is used. All
of these prevent smooth operations.
Threats:
Rapid advance in computers and management information system.
Lack of E-Banking facilities.
Top management of giant.
Complex organizations cannot be authoritarian in the traditional sense and be
effective.
From the above discuss we can say that Janata Bank Limited is one of the largest privatized
Bank of the country. Overall Performance of Janata Bank Limited is satisfactory. But to face
challenges of Globalization, Janata Bank Ltd. should to restructure its operation to improve
as a first generation bank.
5.3 Recommendations
Appendix 1
Appendix 2
Five years Comparative Financial and Operational performance
(including 4 Overseas
Br.)
Appendix 3
Appendix 4