Form di Visual Basic. 1. Membuat Report dengan menggunakan Seagate Crystal Report
Report of Basic Bank
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Chapter One 1 | Page Introducti on
Transcript of Report of Basic Bank
Chapter One
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Introduction
Every bank deals with different vital division such as:
General Banking Division
Loans and Advance Division
Foreign Exchange Division.
Among these three divisions general banking is the core and
leading division. General banking division is the most
important point of all activates. It is the storage point of
all kinds of transactions of foreign exchange division,
loans and advice division, other relevant events. Except
General Banking functions a bank cannot sustain for long.
With the technological advancement this sector is growing
tremendously. As a fast growing bank BASIC Bank actively
realizing that development and trying to conform to the
changing environment.
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Introduction
1.1 Origin of the Report
Banking is one of the most important sectors for country’s
wealth building activities. Commercial banks are certainly
profit making Financial Institutions. These institutions
play great role in the money market of every economy.
Due to recent financial crisis (Particularly in U.S.A,
G.B,EU,Japan) globalization, technological innovation and
deregulation in the banking system all over the world has
been changing rapidly. Now a day’s banks have to compete in
the market place not only with local institutions but also
with foreign financial institutions.
The course under BBA program is designed with an excellent
combination of theoretical and practical aspects. The whole
course is divided into twelve semesters of 4 months each.
After completion of 11th semester consisting of theoretical
exposure, the student are sent to different organization to
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obtain some practical exposure in different sectors which
would help them in taking up more professional courses in
BBA.as a student of BBA,I have assigned to BASIC Bank
Limited, Karwan Bazar Branch for my practical orientation. I
have mainly focused on General Banking Activities of BASIC
Bank Limited.
1.2 Objective of the study
General objective
The study is intended for providing me invaluable
practical knowledge about banking operation in
Bangladesh. The general objective is to prepare the
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report to acquire practical knowledge of the Banking
Sector.
Specific objective
To accomplish the partial requisite of BBA Program and
to achieve of good judgment with theoretical base.
To have a revelation on the banking environment in
Bangladesh.
To examine the extent of Foreign exchange earnings as
compared to total earning, interest income and, non-
interest income.
To understand the general banking activities of any
banks.
To evaluate Overall performance indicators of BASIC
Bank Ltd.
To make myself more confident and active in future to
finger my job.
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1.3 Limitation of the Study
In collecting information, there is some problem
because of the excessive nature confidentiality
maintained by the officials of BASIC.
Learning all the banking functions within 90 days
really tough.
The bank authority was very busy, so they did not
give me enough time for discussion on various
problems.
This is my first experience on job, so there may
arise some faults though I have tried my level best.
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Chapter Two
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Literature Review
Islam (2003) states that the monetary authority determines
the exchange rate policy aiming to achieve two main
objectives. First, the “domestic target”, which includes
restraining inflation rate, credit growth in the public and
private sector, and the growth of liquidity and broad money.
Secondly, the „external target‟, which includes promotion in
international reserves level, reduce the current account
gap, control trends of exchange rate changes in the local
inter-bank foreign exchange market, and adjust the trends in
the exchange rates of neighboring trade partners: India,
Pakistan and Sri Lanka.
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2. Literature Review
It is also emphasized by King (2001) that the many
descriptions today haveh no exactness of meaning. There is
no point in giving labels to credits unless the labels are
of universal application and are reasonably descriptive of
the credit to which they are attached.
Proactive fraud prevention has to be conducted, and it
covers good division of responsibilities, supervision of
staff, monitoring work performance, and all those measures
intended to ensure dishonest people cannot access the
system, or even if the systemis accessed that a proper
control is in place (COSO, 2004). Further factors that help
to prevent fraud can be anti-fraud policies, procedures,
training and fraud awareness (Naill, 2006). Nevertheless,
It can be criticised as being impractical for banks to check
the authenticity of any documents or the signatures on such
documents, due to the large number of shipping companies and
agents in the world and the vast number of documents
presented to banks in L/C transactions. but it may not be
possible to determine whether the goods were loaded on that
ship and the nature or quality of the goods (UNCTAD Report,
1983). Thus, it was further suggested that banks carry out
investigations on some documents on an ad hoc basis; but
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such an approach did not seem to be a satisfactory answer
(UNCTAD Report, 1983).
Chapter Three
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Methodology
3.1 Methodology
To prepare this report all the data and information have
been collected through primary and secondary sources. I
have applied both qualitative and quantitative method.
During my study I followed the following two broad
sources to collect all necessary data and information:
Sources of Information and data:
The sources of information are:
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1. Primary sources: It includes interviews and
conversation with officers and executives of the
Bank of different divisions and Departments.
2. Secondary Sources: It includes annual report,
investment manual, general banking manual,
selected books, journals and other publication.
Study Place:
I have worked BASIC Bank Limited (Karwan Bazar Branch) at
Latif Tower 47,Karwan Bazar,Dhaka-1215
Study Period:
I have worked BASIC Bank Limited (Karwan Bazar Branch) for 3
month (From 5th February-2014 to 28st April 2014).
3.2 Data Analysis:To make this report successful one researcher will analyze
the data as follows:
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The analysis of this report is qualitative. In
qualitative analysis researcher will cover the foreign
Exchange Operation under commercial banking system.
This research will also show some financial performance
analysis for making comparisons among some previous
years of this bank.
Statistical comparison among three month of this branch
will be described by some graphical presentation
analysis.
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Chapter Four
4.1 Historical Background:14 | P a g e
Overview of the Company
4. Profile of the Bank
Bank of Small Industries and Commerce Bangladesh Limited
(BASIC) is a banking company registered under the Companies
Act 1913. It was incorporated under this Act on the 2nd of
August, 1988. The bank started its operation from the 21st
of January, 1989. It is governed by the banking Companies
Act 1991. The bank was established as the policy makers of
the country felt the urgency for a bank in the private
sector for financing Small Scale Industries (SSIs). At the
outset, the bank started as a joint venture enterprise of
the BCC Foundation with 70 percent shares and the government
of Bangladesh (GOB) with the remaining 30 percent shares.
The BCC Foundation being nonfunctional following the closure
of the BCCI, the government of Bangladesh took over 100
percent ownership of BASIC on 4th June 1992. Thus the bank is
state-owned. However the Bank is not nationalized; it
operates like a private bank as before.
BASIC is unique in its objectives. It is a blend of
development and commercial banks. The Memorandum and
Articles of Association of the Bank stipulate that 50
percent of loan able funds shall be invested in small and
cottage industries sector.
Steady growth in client base and their high retention rate
since Bank’s inception testify to the immense confidence
they repose on its services. Diversified products and
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particularly a wide range of lending products related to
development of small industries and micro enterprise and
commercial sector are trading activities attract
entrepreneurs from varied economics fields. Along with
promotion of products, special importance is given to
individual clients through providing personalized services.
In fact individuals matter in this Bank. This motto has been
followed for development of clientele as well as human
resources of the Bank.
BASIC Bank is operated by a team of skilled highly
qualified, experienced and enthusiastic working forces
headed by the well conversant Managing Director of the Bank
who has about three decades prolong close attachment in
different horizon of Banking.
4.2 Functions:
The Bank Offers:
Term loans to industries especially to small-scale
enterprises.
Full-fledged commercial banking service including
collection of deposit, short term trade finance,
working capital finance in processing and manufacturing
units and financing and facilitating international
trade.
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Technical support to Small Scale Industries (SSIs) in
order to enable them to run their enterprises
successfully.
Micro credit to the urban poor through linkage with
Non- Government Organizations (NGOs) with a view to
facilitating their access to the formal financial
market for the mobilization of resources.
In order to perform the above tasks, BASIC Bank works
closely with its clients, the regulatory authorities, the
shareholders (GOB), banks and other financial institutions.
4.3 Organization Strategy
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Financing establishment of small units of industries and
business and facilitate their growth Small Balance Sheet
size composed of quality assets.
Steady and sustainable growth.
Investment in a cautious way.
Adoption of new banking technology.
To employ funds for profitable purposes in various
fields with special emphasis on small scale industries.
To undertake project promotion on identify profitable
areas of investment.
To search for newer avenues for investment and develop
new products to suit such needs.
To establish linkage with other institutions which are
engaged in financing micro enterprises.
To cooperate and collaborate with institutions
entrusted with the responsibility of promoting and
aiding SSI sector.
4.4 Objectives of the BASIC Bank:
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As mentioned earlier, BASIC’s priority is in promoting
and financing development of small and cottage
industries.
Besides, the Bank is to provide full range of
commercial banking services including collection of
deposits, such as current, savings, STD, and FDR;
short term trade finance, handling of import and
export business.
BASIC offers Micro credit to the urban poor through
linkage with NGO’s with a view to facilitating their
access to the formal financial market.
4.5 Organization Goals:
BASIC Bank is always ready to maintain the highest quality
of services by upgrading banking technology prudence in
management and by applying high standard of business ethics
through its established commitment and heritage. Among many
goals of BASIC Bank, one of them is to maximize profit
through optimum utilization of resources by providing best
customers service.
4.6 Organization Mission & Vision:
Mission:
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To provide best development and commercial banking services
to the common people of Bangladesh. And to provide special
support to the small-scale business enterprises so that,
they can play an important role in the economic development
of the country.
Vision:
To be a bank of choice by interwining excellence in customer
service experience, optimum profitability with efficiency,
imitable corporate culture in terms of complints banking
activitiesand efficient & motivated human resource and
endless quest for becoming the best corporate citizen &
serving peaple for progress.
4.7 Organization StructureTo achieve its organizational goals, the bank conducts its
operations in accordance with the major policy guidelines
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laid down by the Board of Directors, the highest policy
making body. The management looks after the day-to-day
operation of the Bank.
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Company Sectary
Company Auditor
Member
Convener
Member
Managing
Director
Deputy General Manager
Manager
Officer
Assistant Officer
Asst. Manager
Staff / Others
Chairman
Director
Director
Director
Director
Director
General Manager
Assistant General Manager
Depute Managing Director
Deputy Asst. Manager
Chapter FIVE
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General Banking
Activities of BASIC Bank LTD
[5.1] GENERAL BANKING:
General Banking is the most important and common part of anybank. Cause majority transaction is held in this section.This section has four (4) parts as follows:
The structure of General Banking as follows :
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GENERALBANKING
ACTIVITIES
[5.1.1] CASH:Cash section demonstrates liquidity strength of a bank.It also sensitive as it deals with liquid money. Maximumconcentration is given while working on this section. Asfar as safety is concerned special precaution is alsotaken. Tense situation prevails if there is any imbalancein the case account.
CASH SECTION: The function of this unit is to receive and payment of cash.The vault limit cash limit of the branch is TK.15000000 andTK.1000000 respectively. The head teller is allowed to encash check up to TK.100000 with her own signature. Ifadditional cash is required then the second man of thebranch makes arrangement on request. There are one chiefofficer, one senior officer, and two Banking officers inthis department.
Operation of this section begins at the banking hour. Cashofficer begins her/his transaction with taking money fromthe vault, known as the opening cash balance. Vault is keptin a much secured room. Keys to the room are kept under
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CASHRECEIVE
& PAYMENT
ACCOUNTOPEN
PROCEDURE
CLEARINGHOUSE
CUSTOMERSERVICEDD,TT, &
control of cash officer and branch in charge. The amount ofopening cash balance is entered into registered. After wholedays’ transaction, the surplus money remains in the cashcounter is put back in the vault and known as the closingbalance. Money is received and paid in this section.
CASH RECEIPT:
At first the depositor fills up the Deposit inthe Slip. For saving account and currentaccount same Deposit in Slip is used in thisBranch.
After filling the required deposit in slip,depositor deposits the money.
Officers at the cash counter receives themoney, count it, enter the amount of money inthe register kept at the counter, seal thedeposit in slip and sign on it with date andkeep the bank’s part of the slip. Other part isgiven to the depositor.
All deposit slip of saving; Current and STD A/Care maintained in accounts section.
CASH PAYMENT:
Cash payment of different instruments is made in the
cash section. Procedure of cash payment against check is
discussed below elaborately. Cash payment of check
includes few steps.
First of the entire client comes to the counter withthe check and give it to the officer in charge there.The officer checks whether there are two signatures
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on the back of the check and checks his balance inthe computer. After that the officer will give it tothe cash in charge.
Then the cash in charge verifies the signature fromthe signature card and permits the officer incomputer to debit the client’s account by givingposting. A posted seal with teller number is given.
If the signature matches with the one givenpreviously then the teller will make payment keepingthe paying check with him while writing thedenomination on the back of the check.
Cash paid seal is given on the check and make entryin the payment register.
There are few things that shall be scrutinized and checkedbefore making payments.
Name of the drawer. Account number. Specimen signature. The validity of the check and make it sure that
it is not postdated or undated. The amount in words and figures are same.
CASH BALANCE CALCULATION:
The officer in charge of cash section does the calculationand then Sub-manager or authorized officer will check thebalance and sign in the cash balance book. The balance ismaintained in the balance book. Opening balance of currentday is the closing balance of the previous day. Totalreceive of the current day is added with the opening balanceand total payment is deducted for calculating the closingbalance or cash balance.
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BANK VAULT: All cash, instruments (P.O.D.D. check) and othervaluables are kept in the vault is insured up to Tk. 10crore with a local insurance company. If cash stock goesbeyond its limit of Tk. 10 crore, the excess money istransferred to Bangladesh Bank if there is shortage ofcash during transaction period money is transferred todrawn from the central bank. There are three keys of thevault, which are given to three seniors most officers.Daily, an estimated amount of cash is brought out fromthe vault, for transaction purpose. No more than Tk. 4Crore brought at once from the vault, on a single day.
CASH PACKING AND HANDLING: Cash packing and handling needs a lot of care as anymistake may lead to disaster. Packing after banking hourwhen the counter is closed, cash are packed according todenomination. Notes are counted several times and packedin bundle, stetted and stumped with initial.
TELLER CUSTOMER RELATIONSHIP: In a bank a person who delivers and receives cash fromthe cash counter is known as teller, a customer meetsmost of the time in a bank with a teller on the counter.So teller should hold certain quality.
Should be friendly.
Provide prompt service.
Be accurate in his task.
Be carefully.
To have endless patience.
Be smart.
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In short a teller should be efficient otherwise he hasto pay.
[5.1.2] TYPES OF ACCOUNT: Keeping an eye on the needs of the customers and to ensure theirfull satisfaction BASIC Bank has a full range of depositproducts.
There are mainly five types of Accounts are as follows:-
1. Savings Deposit (SB) 2. Current Deposit (CD) 3. Short Notice Term Deposit (STD) 4. Fixed Term Deposit (FTD) 5. Bearer Certificate of Deposit (BCD)
1. SAVINGS BANK DEPOSIT ACCOUNTS (S.B):
Savings Bank Deposit account may be opened in the nameof adult individual or jointly in the names of two ormore persons payable either or both or all them orto the survivor with total satisfaction of Bank.
These are interest bearing deposit accounts. (Presentinterest rate 5.00% in BASIC Bank Ltd.
Savings Bank Account shall not be allowed to beoverdrawn.
Saving Bank Account must not be allowed to be conductedas Current Account.
The drawings are restricted in respect of both theamount of withdrawal and the frequency thereof so thatthe payment of interest does not become non-compensating for the banker.
No interest will be paid in a Savings Bank Account forthe month in which withdrawals have been made more than
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twice a week or over 25% of the balance of his/heraccounts without notice. For withdrawal of sumexceeding 25% of the balance, 7 days notice in writingshould be given to the bank.
Interest shall be calculated on the minimum balance atthe credit of an account between the close of the 5th
day and the last day of the month. Interest will be applied half yearly on 30th June &
31st December at the prescribed rates as advised byHead Office
These accounts intended for individual savings and arenot suitable for business concerns that requirefrequent withdrawals.
Bank may however refuse without assigning any reasonsto open savings account by any body.
The Bank reserves the right to close any Savings BankDeposit account with prior notice.
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2. CURRENT DEPOSIT ACCOUNT (C.D):
A Current Deposit Account may be opened in the name ofperson(s) having contractual capacities. Anyindividuals, firm, company, club, association, andcorporate body may open a Current Account.
Drawings are allowed on demand from such an accountwithout any restriction within the funds available inits credits.
No interest is payable on the balance of currentaccounts.
Bank may however refuse without assigning any reasonsto open current account by anybody.
The Bank reserves the right to close any currentaccount with prior notice.
3. SHORT TERM DEPOSIT ACCOUNTS (STD):
Short Term Deposit Account (STD) is opened usually byCorporations, Banks and Financial Institutes etc.
These deposits are withdrawn able on 7 days’ notice bythe account holder(s). Withdrawal is allowed after theexpiry of notice period.
Interest on such deposits are payable at the ratedetermined by Head Office from time to time. (Presentinterest rate on STD A/C is 3.00% in BASIC Bank Ltd.)
Interest shall be calculated on daily product basis andapplied half yearly at end of June and December or whenan account is closed.
4. FIXED TERM DEPOSITS (FTD):
Fixed Deposits may be opened by one adult individualsingly or by more than one adult individual jointly orby any Government/Private /Autonomous or otherorganization.
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These deposits shall be opened for a fixed periodranging from three months to two years.
Interest on FDR shall be payable only after maturity ofthe FDR along with the principal.
Following rate of interest on FDR is prevailing inBASIC Bank Limited.
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Following rate of interest on FDR is prevailing in BASIC Bank Limited.
Period Interest Rate
3 Months and above 5.75%6 Months and above 6.00%12 Months and above 6.25%24 Months and above 6.50%
Payment of FDR will be made on demand after expiry ofthe maturity period on presentation of FDR dulydischarged by the depositor(s).
For encashment of FDRs before maturity, if FDR isencased before expiry of 3 months no interest would begiven. Interest for 3, 6 or 12 months, as the case maybe given if encased after expiry of such period butbefore maturity.
(Circular no. BASIC/HO/ICD/2000/7583, Dated 14-11-2000) Each time when FDR is opened, it shall be considered as
a separate contract. Fixed Deposits are neither transferable nor negotiable.
5. BEARER CERTIFICATE OF DEPOSIT (BCD):
From 1983 a saving scheme named Bearer Certificate ofDeposit (BCD) has been introduced under circular ofBangladesh Bank to bring the black money in investmentcycle. BCDs are issued for multiples of Tk. 50,000.00 such as Tk. 1,00,000.00, Tk. 1,50,000.00and so on for unlimited amount. No signature isrequired to issue a BCD. The holder is owner of BCD.
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Rate of Interest on F.D.R.
Who can get it issued: Any individual withoutdisclosing his/her identity and without Opening anyaccount.
Period: These deposits shall be opened for a fixedperiod ranging from three months to two years.
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Interest: Interest rate is 1% below as that of FDR. i.e.
Following rate of interest on BCD is prevailing inBASIC Bank Limited.
Period Interest Rate
3 Months andabove
5.75%
6 Months andabove
6.00%
12 Months and above 6.25%24 Months andabove
6.50%
BCD Calculation: The value after the maturity is theface value of BCD. Calculation is as under:
PV=FV / (1+i) Where PV =Present value, FV = Future value i =Interest Rate, n = year
EXAMPLE : -
To issue a BCD for Tk.1 .00 lac for the period of 1year
PV = 1, 00,000.00 / (1+0.0625) = 94,117.65
10 % Income Tax on interest = Tk.625.0034 | P a g e
Rate of Interest on B.C.D.
Excise Duty = Tk.120
So required deposit = PV + Income tax on interest+Excise Duty
= Tk. 94,117.65 +Tk. 625.00 + Tk.120 = Tk.94, 862.65
Present Status: As per BRPD Circular No.08 dated 25-07-2000& BRPD Circular No.09 dated 20-10-2002 BCD cannot be issued or renewedfurther.
[5.1.3] Papers /Documents required for opening of INDIVIDUAL/JOINT, PROPRITORSHIP, &PARTNERSHIP ACCOUNTS:
INDIVIDUAL /JOINT:
Two copies of passport size photograph of theAccount holder(s) or Person(s) who will operatethe Account duly attested by acceptableintroducer,
Passport, Introductory Certificate from Employer, Introductory Certificate from renowned person of
the society acceptable to Bank/FinancialInstitutions, and
TIN Number (If applicable).
CAUTIONS:
In Account opening form Name, Present &Permanent address, Date of birth, Age ofaccount holder, Father’s Name, Mother’s Name,
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Husband’s Name in case of married lady must befilled up properly in Account opening form.(Money Laundering Circular no.02 of Bangladesh Bank,
Dated 17-07-2002 & Circular no.03 Dated 10-12-2002)
The Introducer of the proposed new account mustbe maintained an account with the branch forat least one year and the account must havegood transactions over the last year.
(Circular no. BASIC/HO/Gen/2000/14, Dated 18-10-2000)
The details of the identity, address andbusiness of the new account holder must beverified and the branch In Charge should besatisfied about the person/firm/company’scredibility. (Circular no. BASIC/HO/Gen/2000/14, Dated 18-10-2000)
A letter of thanks shall be sent to theintroducer and to the account holder onBank’s Standard Form.
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PROPRIETORSHIP FIRM:
Two copies of passport size photograph of theAccount holder(s) or person(s) who will operatethe Account duly attested by the introducer.
Certified copy of valid Trade License from theMunicipality/ City Corporation/Union Parishad.
Passport/ Introductory Certificate from Employer/Introductory Certificate from renowned personof the society acceptable to Bank/FinancialInstitutions.
TIN Number (If applicable).
CAUTIONS: Same as Joint/Individual Account.
PARTNERSHIP FIRM:
Two copies of passport size photograph of theAccount holder(s) or person(s) who will operatethe Account duly attested by the introducer.
Certified copy of valid Trade License from theMunicipality/ City Corporation/Union Parishad.
Certified copy of the Registration Certificateof Partnership Deed duly attested by NotaryPublic in case of registered firm.
Partnership Account Agreement.
Resolution signed by all partners to open theA/C.
Passport/ Introductory Certificate from Employer/Introductory Certificate from renowned person
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of the society acceptable to Bank/FinancialInstitutions.
TIN Number (If applicable).
CAUTIONS: Same as Joint/Individual Account.
[5.1.4] Papers /Documents required for opening of LIMITED COMPANIES ACCOUNTS:
LIMITED COMPANY:
Two copies of passport size photograph of theAccount holder(s) / person(s) who will operatethe Account duly attested by the introducer.
Certified copy of Memorandum & Articles ofAssociation by RJSC.
Certified copy of Certificate of Incorporationby RJSC.
Certified copy of Certificate of Commencement of
Business (in case of Public Limited Company).
Up to date list of Directors.
Certified copy of Resolution of the Board ofDirectors for opening & operation of theAccount.
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Passport/ Introductory Certificate from Employer/Introductory Certificate from renowned personof the society acceptable to Bank/FinancialInstitutions.
TIN Number (If applicable).
CAUTIONS: Same as Joint/Individual Account.
TRUST:
Two copies of passport size photograph of theAccount holder(s) / person(s) who will operatethe Account duly attested by the introducer.
Up to date list of Members of the Trustee Board.
Certified copy of Deed of Trust certified by theChairman/Secretary of Trustee Board.
Certified copy of Resolution of the TrusteeBoard for opening & operation of the Account.
CAUTIONS: Same as Joint/Individual Account.
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[5.1.5] Papers /Documents required for opening ofEXECUTORSHIPS ACCOUNTS:
EXECUTOR:
An executor is a person appointed by a testator forexecution of the last will leave by him. Upon production ofprobate of the will the executor should be allowed to closethe deceased’s account and deal with the credit balance asper terms and conditions of the will, affecting the account.
In case of credit balance of the deceased’s account, it ispreferable for the banker that the executor opens therequired account as an executorships account instead of anaccount in the personal name of the executor.
Required Paper for an executorships account: -
Two copies of passport size photograph of the executor/ person(s) who will operate the Account duly attestedby appointed by the testator for execution of the lastwill leave by him.
Will deed executed by a testator for execution of thelast will leave by him in the front of 02 male or 01male & 02 female to operate the account.
Will probate accepted by Court.
Power of Attorney executed by a testator for executionof the last will leave by him favoring the executor inthe front of 02 male or 01 male & 02 female to operatethe account.
CAUTIONS:
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Same as Joint/Individual Account.
The banker should not allow any transfer of thedeceased’s assets. The banker should not allowany transfer of the deceased’s funds to thepersonal account of the executor nor should heallow the executor to raise any personal loanagainst security of the deceased’s property.
Otherwise, he will be held liable for the misuse.
[5.1.6] Papers /Documents required for opening ofADMINISTRATOR & CLUB/SOCIETY/SCHOOL/COLLEGE ACCOUNTS:
ADMINISTRATOR:
An administrator is appointed under the authority of a courtof competent jurisdiction where the deceased appointing anexecutor leaves no will. The administrator has substantiallythe same duties and powers as those of the executor; theydiffer mainly in the manner of their appointment. While theexecutor derives his authority from the will immediatelyafter the testator’s death, the administrator derives hisauthority from the letters of administration, which heproduces to the banker for inspection as an executorproduces probate of the will for the purpose of a bankaccount. The administrator is also the legal representativeof the deceased with powers to sue, recover debts and incurexpenses. But he may not mortgage, charge or transfer anyproperty without prior permission of the court granting theletters of administration. On the death of an administratorthe surviving administrator, if any, acts, but on the deathof the last administrator fresh letter of administrator isnecessary.
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CLUB/ SOCIETY/SCHOOL/COLLEGE ETC:
Two copies of passport size photograph of theAccount holder(s) or person(s) who will operate theAccount duly attested by the introducer.
Memorandum & Articles of Association duly certifiedby the Chairman/Secretary.
Bye Laws & Regulation/ constitution duly certifiedby the Chairman or Secretary.
In case of cooperative society Bye Laws &Regulation/ constitution.
Duly certified by Cooperative Officer. Resolution of Management Committee/ Executive
Committee for opening & operation of the Account. Up to date list of Office Bearers/ Governing Body/
Managing Committee duly certified by the Chairman/Secretary.
Government approval in case of registeredClub/society.
CAUTIONS: Same as Joint/Individual Account.
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[5.1.7] Papers /Documents required for opening of NGO, JOINT VENTURE, & AIRLINES ACCOUNTS:
NGO: Two copies of passport size photograph of the
Account holder(s) / person(s) who will operate theAccount duly attested by the introducer.
Certified copy of Bye Laws & Regulation/constitution duly certified by the Chairman/Secretary.
Certified copy of Resolution of ManagementCommittee/ Executive Committee for opening &operation of the Account.
Up to date list of Office Bearers/ Governing Body/Managing Committee duly certified by the Chairman/Secretary.
Permission from NGO Bureau. Permission from Head Office.
(Circular no. BASIC/HO/Gen/2000/14, Dated 18-10-2000)
CAUTIONS: Same as Joint/Individual Account.
JOIN VENTURE COMPANY (BANGLADESHI + FOREIGNER):
Two copies of passport size photograph of theAccount holder(s) or person(s) who will operate theAccount duly attested by the introducer.
Copies of passports of A/C operators (1st 6 pages +visa pages for foreigners).
List of Directors Resolution of the Board of directors for opening &
operation of the 43 | P a g e
Account Permission from Board of Investment. Joint Venture agreement attested by Notary public Certified copies of the Memorandum and Articles of
Association Certified copies of incorporation.
CAUTIONS: Same as Joint/Individual Account.
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ACCOUNTS OF MUNICIPAL CORPORATIONS, LOCAL
AUTHORITIES, DISTRICT COUNCILS, OTHER PUBLICBODIES:
Before opening the account of any Government or Semi-Government Organization or a Local Body, a certified copy ofthe Statute or any other law by which the body is createdand governed shall be obtained.
Two copies of passport size photograph of the Accountholder(s) or person(s) who will operate the Accountduly attested.
Resolution of the Board of Directors for opening &operation of the Account.
The Name, Address, Signature and Power of the accountoperator should be mentioned in mandate.
If the account operator is transferred then postingorder and joining report of newly posted employee arerequired and the previous person verified the newlyposted employee’s signature.
[5.1.8] SPECIAL CASES IN ACCOUNT OPENING:
MINOR ACCOUNT:
Who is Minor?
A person who has not completed his 18th year of age isconsidered to be a minor.
Minor is not owner of deposited money in minor account:
CAUTIONS:
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Banker has to take special care so that nooverdraft can be made on minor account. Minorcannot be liable for any loan as minor has noright to sign a contract.
Minor should not provide cheque books. But she/hecan use cheque leaf. Minor will sign an only aloose cheque leaf in front of Branch In Charge sothat he/she cannot draw excess amount of money.In any case, when there is the least doubt, properidentification must be obtained & banker shouldinform the Guardian of minor.
No cheque, bill should not receive in minoraccount. If any dispute arises minor cannot beliable for any contract.
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Minor is owner of deposited money in minor account:
In that case minor cannot withdraw money from this accountbefore being adult.
CAUTIONS:
Date of birth of minor and the date ofattaining majority should be noted at the topof the Account Opening Form and in thecomputer. So that he/she can withdraw moneyafter being major.
The Guardian who opened the account in theminor’s name will introduce the minor afterbecoming adult to bank. In this introduction arenowned person should be present as a witness.
How ever the minor’s account can be opened in his own name and minor himself can operate the accountin the following way:
I. Minor who is 12 years or above may beallowed to maintain deposit account with us.
II. Normal procedure of introduction and otherformalities shall be observed.
III. The account shall be non-borrowing innature. Under no circumstances there shallbe any overdraft in this account.
IV. Minor can draw a cheque. If there iswrongful dishonor of such cheque minorcan sue Bank for damage and for wrongful
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dishonor. If there is a wrongful paymentto the minor, Bank will not be able torecover such payment. So Branch should bevery cautious for any payment to the minor.
V. In case of death of the minor, his legalheirs would be the beneficiaries of theAccount.
[5.1.9] SPECIAL CASES IN ACCOUNT SURVIVOR:
JOINT ACCOUNT:
In case of accounts to be opened in two or morenames, “Either or Survivor” containing clear andspecific instructions regarding operations of theaccounts. These instructions shall be obtainedunder the signatures of all of them.
“EITHER OR SURVIVOR”
If in the account opening form contains theInstruction “Either or Survivor”, in case of deathof any joint account holders the balance will bepayable to the survivor with total satisfaction ofBank.
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In absences of the instruction “Either or Survivor”
In the absence of specific instructions inthe Form “ Either or Survivor” balance ofthe joint account will be payable to thesurvivors and the legal representatives ofthe deceased joint account holder.
CAUTIONS:
In the event of death of any account holders, thesurvivor shall be requested to close the oldaccount and open a new account in the name of thesurviving account holder
No overdraft shall be allowed in a Joint Account,unless all the parties to the account operate itjointly, and charge documents in respect of theadvance are also signed by all of them.
[5.1.10] SPECIAL CASES IN ACCOUNT DECEASED /STOP PAYMENT:
DECEASED ACCOUNT:
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In case of death of an individual accountholder, alloperations in his account shall be stopped for with. A“Caution mark: Deceased account” shall be drawn just belowthe balance of the account.
As soon as the information is received either throughnewspaper or some reliable source about the death of aconstituent, the date of death and source of informationshall be noted in the Computer against the relevant account.Interest on the account of the Deceased shall not be paid asdeath terminates the contract with the Bank.
CAUTIONS:
i) The credit balance of the deceasedcustomer shall not be paid to any personunless a probate or letter of administrationor succession certificate issued by acompetent court is produced to the Bank andthe Bank is satisfied about the bona fides ofthe beneficiary.
ii) In special circumstances, Head Office maywaived the above requirement where the Bankis satisfied about the bona fides of thesuccessors subject to their submitting anindemnity duly executed on a non-judicialstamp paper along with two suretiesacceptable to the Bank.
iii) The account of a deceased shall not beallowed to be operated on or transferredunder the instructions of any Executor orAdministrator or any claimant under Indemnityletter or otherwise.
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STOP PAYMENT ORDER:
Instructions of stopping payment of any Chequeshall be obtained from the account holders inwriting.
If such instructions are received on telephoneor by telegram, a provisional note in respectthereof shall be made in the Computer pendingreceipt of written instructions from the accountholder. Should the Cheque be presented in themeantime, the same should be returned with theobjection “Drawer’s Confirmation Required”
The date and time on which those instructionsare received shall be marked on the letter andinitiated by an Authorized Officer.
The signature of the account holder shall beverified on the letter.
The instruction shall be passed on the ComputerOfficer to check the respective account toascertain whether that particular Cheque hasalready been paid or not.
The Stop Payment instruction should be recordedin the Computer instantly.
The Stop Payment letters received from theparties shall be kept in the “Stop PaymentFile”.
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[5.1.11] ACCOUNTS CLOSING:
To close an account, parties may be requested to send anapplication along with the unused leaves of the Cheque Booksissued to them.
On receipt of the application, the following will bedone:
The signature of the account holder shall be verified. The number of unused Cheque Leaves shall be noted
there on. Before the account is closed the Branch In-Charge
shall approve the application after asserting theliability, if any, and incidental charges to bedebited to the account.
After debiting the incidental charges to the account,the account holder shall be advised to draw theremaining balance from his account.
The “Account Closed” stamp shall be affixed on theAccount Opening Form and Specimen Signature Cards.
The application shall be posted with the accountOpening Form and the Specimen Signature Cards shall bekept separately under lock and key.
An Authorized Officer shall destroy the unused Chequeleaves.
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[5.1.12] ACCOUNT OPENING PROCEDURE [Flowchart]:Account Opening Procedure with a Flow Chart: -
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Applicant fillsup the
application in
He is requestedto fill up the
specimen
An accountholder needsintroduction
After depositingcash, checkbook
is issued
Issuance ofdeposit slip andthe deposit must
The authorizedofficer
scrutinizes the
[5.1.13] ISSUE OF CHECK BOOK
ISSUE OF FRESH CHECKBOOK:
Fresh checkbook is issued to the account holder only againstrequisition on the prescribed requisition slip attached withthe checkbook issued earlier, after proper verification ofthe signature of the account holder personally or to hisduly authorized representative against properacknowledgment.
Issuance of Fresh check book: -
Issue of Duplicate checkbook: -
Duplicate checkbook in lieu of lost one should beissued only when an A/C holder personally approachesthe bank with an application letter of indemnity in theprescribed pro-forma agreeing to indemnify the bank forthe lost checkbook. Fresh checkbook in lieu of lost oneshould be issued after verification of the signature ofthe account holder from the specimen signature card and
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REQUISITION SLIP FILLED UP
PROPERLY ALONGWITH THE
CHECKBOOK NUMBER ENTER THE NEWCHEQUE BOOK
NUMBER IN THEREGISTER BOOKAGAINST THESPECIFIC
BANKER ISSUANCENEW CHEQUE BOOK
IF EVERY THINK IN THERIGHT FORM
BANKER VERIFIES THE SLIP
on realization of required exercise duty only withprior approval of manager of the branch. Check seriesnumber of the new checkbook should be recorded inledger card signature card as usual. Series number oflost checkbook should be recorded in the stop paymentregister and caution should be exercised to guardagainst fraudulent payment.
[5.2] CUSTOMER SERVICES:
Through this section customers can do D.D, T.T, PAYORDER, I.B.C.A, & I.B.D.A.
PROCEDURES OF D.D, T.T, PAY ORDER, I.BCA, & I.B.D.A:
There are three types of transaction can do through D.D,T.T, & Pay Order as follows:
Cash – Receive cash and send pay order to anotherbranch.
Accounts to Accounts – One can transfer his accounts toanother branch through D.D, & T.T.
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Clearing – If any client submits any cheque of anyother bank, in this case this cheque will collectthrough clearing house of Bangladesh bank; they collectit in same process.
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CUSTOMERSERVICE
D.D.
I.B.D.A.
T.T.
I.B.C.A.
PAYORDER
[5.2.1] T.T. – TELEGRAPHIC TRANSFER:These are two types. One is inward T.T & another is outwardT.T. In this procedure one can transfer money from one placeto another place. For this reason money carrying risk isreduced. As well as time also save.
This procedure is only applicable for in this bank & itsother branches. No one can do T.T. from in this bank toanother bank. Cause for any T.T. clients must have accountsin this bank.
PROCEDURE OF INWARD T.T:
This means any client of our branch want to does T.T. thenhe inform his branch and from that branch inform to mainbranch through telephone.
In this case bank must see some important things as follows:-
T.T. control number. Payee name and account number. By order. Test number. [For any amount of money this number
must be needed] Amount in ward. Amount in figure.
After getting this T.T. bank check that T.T. andregister it in register book according to that branch.In this case most important things are test number.Cause it maintained for client’s security. If the testnumber doses not match with the register book, thenbank inform it to that branch and bank does not paythat money. But usually this type of mistake does nothappen.
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After register T.T. banks make an advice, which hasfour parts. Bank indicates clearly the date, the amountof T.T. inward and in amount.
In this advice bank dose customer accounts debit andhead office account credit and write test number.
Two copies send to that branch, one to the head officeaccount and one is attach with voucher.
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PROCEDURE OF OUTWARD T.T: This is like reverse of inward T.T. In
this case if any client wants totransfer money or account, he informsbank. Bank informs that branch wherethe client wants to transfer hisamount. In this case, bankcommunicates with that branch throughtelephone.
Bank must inform the payee name, by
order, amount of money, advice number.
Same as inward T.T. procedure thatbranch makes advice against thisbranch.
For an example if any client of ourbranch wants to T.T. to Chittagongthen he must fill up the form of T.T.where he writes all information as perT.T. form. Then bank check allinformation and charge commission, vatand telex charge.
For any amount of T.T. test number isneeded.
Charge for T.T. as follows:
CHARGES PERCENTAGECommission Minimum 150TK. Or 0.1% (Which one
greater).
VAT 15%.Telex Charge 50TK. (Fixed)
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Note: Inward & Outward T.T.’s copy enclose in appendix.
[5.2.2] D.D. – DEMAND DRAFT:Demand Draft is another way to pay money or transfer accountone branch to another branch. In this case one can pay moneyto his client to any place of Bangladesh. In this caseclient does need account in this bank.
These are two types. One is in ward D.D. and another isoutward D.D. In this procedure one can transfer money fromone place to another place. For this reason money carryingrisk is reduced. As well as time also save.
PROCEDURE OF OUTWARD D.D:
In this case transferee fills up the formwhere he must write the drawer name andaccount number and the bank name where branchoffice collects the money.
In D.D. there must have important information as follows:
D.D. Number. Control number.
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Payee name and account number. Amount in ward and amount in figure. Branch code of from and to. Test number. Signature of applicant.
For an example if any client of our branch wantsto D.D. to Sylhet then he must fill up the formof D.D. where he writes all information as perD.D. form. Then bank check all information andcharge commission, VAT and postage charge.
For D.D. (1 to 49,999) Tk. There is no testnumber is needed. Greater than 49,999 Tk. D.D.needs test number.
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Charges for D.D. as follows:
CHARGES PERCENTAGECommission Minimum 50Tk. Or 0.1% (Which one
greater).
VAT 15%.Postage Charge 25Tk. (Fixed)
Then register D.D. in register book. Where bankwrites control number, test number, amount inword and figure, payee name and the branch namewhere it sends.
The bank makes an advice, which has four parts. Twocopies send to the payee’s branch, one copy sends tothe head office and the rest one in this banksvoucher.
PROCEDURE OF INWARD D.D:
When D.D. from any branch, then we register it in registerbook, in this case bank must see the previous serialnumber. If it is correct, than bank register it inregister book. Where bank entry date on the D.D., D.D.number, payee name, amount, and serial number.
For an example if any D.D. comes from Rajshahi. Then bankdoes:
Head Office A/c (Rajshahi Br) Dr.D.D. Payable A/c Cr.
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CHARGES ON
When branch gets that money from head office then bank does:
D.D. payable A/C Dr.Customer A/C Cr.
Branch office maintain a with head office which is calledHead Office Account.
Note: Inward D.D.’s copy enclose in appendix.
[5.2.3] PAY ORDER:Pay orders are the safest way of making payments, as theyare drawn on the bank issuing them. So, there is no scope offraudulent or cheque bouncing. A pay order is issued onlywithin the members of the Bangladesh Bank clearing house(Dhaka Metro). It can be issued in favor of a customerholding an account, by debiting his account and creditingbills payable account. In case of a non-customer, cashequivalent of the payment plus order charges is received incash and held in the daily suspense account until thepayment is made through clearing.
It is another facility for client to transfer his money toanother place. In this he must has an account in this bank.If he has no account in this bank, he can deposit money inthis bank and does Pay Order. But in this case he must needa person how knows him. He can deposit check, which isconfirmed, by Bangladesh bank’s clearinghouse. If it iscorrect than bank does this Pay Order.
Application must fill up the Pay Order form, where Pay Ordernumber, Payee name, Amount in figure and in wards.
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Bank take commission and VAT as follows:
CHARGES TK.Commission 50TK.VAT-15% ofcommission.
8TK.
Note: Pay Order form copy enclose in appendix.
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REFUND OF PAY ORDER:
The following procedure should be followed for refund of payorder by cancellation: -
1. The purchase should submit a writtenrequest for refund of pay order bycancellation attaching therewith theoriginal pay order.
2. The signature of the purchaser will haveto be verified from the originalapplication form on record.
3. Manager/ sub-manager's prior permissionis to be obtained before refunding theamount of pay order cancellation.
4. Prescribed cancellation charge is to berecovered from the applicant and only theamount of the pay order less cancellationcharge should be refunded. Commissionrecorded for issuing the pay order shouldnot be refunded.
5. The pay order should be affixed with astamp ''Cancelled'' under properauthentication and the authorizedofficer's signature of the pay ordershould also be cancelled with red ink butin no case should be torn. The cancelledpay order should be kept with therelevant ticket.
6. The original entries are to be reversedwith proper narration.
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7. Cancellation of the pay order should alsobe recorded in the pay order issueregister.
[5.2.4] I.B.C.A. & I.B.D.A: [Inter Bank Credit Advice & Inter Bank Debit Advice]
Check comes from different bank. If these checks come fromwithin Dhaka city then it goes to clearing house. If thesecome from outside the city then bank do OBC (Outward Billsfor Collection) against that bank to collect that amount ofmoney. After receiving the checks and crossing on thatcheck, then put OBC sill on that checks, then putendorsement sill backside of these check and register it inthe register book.
Then bank makes advice against that bank where the checkcomes. If the bank request for OBC to any branch of its,then bank advice to send I.B.C.A. then Bank make a liabilityvoucher, where: -
Customer Liability Dr.Bankers Liability Cr.
After collection money bank does: -67 | P a g e
Bankers Liability Dr.Customer Liability Cr.
On the credit voucher bank write the OBC number, Date, inadvice, Bank name and amount.If the bank requests it’s any branch to collect the amountof money where it needs to collect, then bank must write thename of the bank where it will be collected. If bankcollects in directly from any bank, in that case bank writesDrawn Yourself.
I.B.C.A. PROCEDURE:
When any branch send I.B.C.A. to this bank, then bankregister it into register book. Where bank write the date,branch name, check number, date on the check, name of thebank, and amount. Then it is place for clearing and afterrealization of that check, and then bank makes a voucher.Where bank does-
Misc. A/c Dr.Branch A/c Cr.
Then Bank registers it in OBC register book.
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[5.3] CLEARING HOUSE:
ORIGIN OF BANKS’ CLEARING HOUSE:
Before introduction of the present concept ofClearing House, the representatives of the bankshad to collect the proceeds of the instrumentsin Cash from the drawee banks, which involverisk, time and money. Mr., Arbin first thoughtabout Clearing House to solve those problems andon the basis of his revolutionary thought Banks’Clearing House was initially established in 1775in London as “London Clearing”.
CLEARING HOUSE:
Clearing House is mechanisms for expeditioussettlement of inter bank claims arising out oftheir constituent’s negotiable instruments inpresence of representatives of all member banks.In Bangladesh, Clearing arrangements exist inthe office of the Bangladesh Bank, at otherplaces in the office of Sonali Bank whereBangladesh Bank has no Office.
TYPES OF CLEARING HOUSE:
There are two types of clearing System in Bangladesh. They are: –
Inter-Branch Clearing, and Inter-Bank Clearing.
Under the system of Inter-Branch Clearing,inter-branch claims of a particular bank withinthe City or town area are settled through theirMain Office or Local Office.
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But under the system of Inter Bank Clearing, theclaims among the members of the clearing houseof different Banks within the area of clearinghouse are settled under the direct supervisionand control of Bangladesh Bank and each memberbank of the Clearing House has to maintain theiraccount with Bangladesh Bank.
USEFULNESS OF CLEARING HOUSE:
Clearing House is essential for adjustment of adeveloped Banking System. It makes easysettlement of inter-bank claims and it saveshuge cash transactions and consequent danger ofloss in transit and the necessity of holding byevery bank of a huge cash balances for thepurpose. The Clearing House is of incalculablebenefit as a time, labor, risk and currencysaver.
FUNCTION OF CLEARING HOUSE:
Entire function of Clearing House may be divided into 3 parts:
Operational procedure at Branch Level, Internal or Inter-Branch Clearing procedure,
and Main Clearing House or Inter-Bank procedure.
[5.3.1] OPERATIONAL PROCEDURE AT BRANCH LEVEL:
There are two types of clearing activities at BranchLevel:
Outward Clearing, Inward Clearing.
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OUTWARD CLEARING:
Under this system negotiable instruments drawn on otherbanks are presented in the respective bank through ClearingHouse for receiving payment and after receiving the proceedsof the cheque / instruments the accounts of the respectiveclients are credited.
INWARD CLEARING:
Under this system negotiable instruments of different bankspresented in the Clearing House are received by therepresentative of the respective bank and bring theinstruments of their branches for making payment.
Procedural activities of Outward Clearing System:
Outward Clearing System includes the following activities:
Scrutinizing the correctness of the instruments thatreceived for clearing.
Affixing the branch crossing seal on the face of theinstrument.
Affixing branch clearing seal on the deposit slips andon the face of the instruments.
Making necessary endorsement on the back of theinstruments.
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Encoding the necessary information of the instrumentsin the diskette.
Cheque Information:
Date:Batch No :Bank From:Bank To :Issue Date
:Cheque Series
:Cheque SL No.
:
Cheque Number :Book Number :Cheque Type :Cheque A/C No. :Amount :Payee Name :Payee A/C No. :Amount in deposit slip :
Preparation of schedule bank-wise as well as branch-wise.
Preparation of Outward Clearing Register.
Sorting the instruments bank–wise and branch–wise.
Ensuring the correctness of encoding regarding theinformation of instruments in the diskette, (theoutward Clearing Register is checked with instrumentsand Deposit slips and makes necessary corrections inthe diskette).
Stapling the instruments with the schedule.
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Sending the instruments along with diskette to theMain Branch or Local Office for clearing.
Passing the entries at the time of sending clearinginstruments is as under: For branch other than Main Branch / Local Office:
Debit : Head Office A/C (Main Branch)Credit : Sundry Clients A/C / other A/Cs
Activities of Internal Clearing House at Main Branch:
Receiving the diskettes containing theinformation of negotiable instruments along withinstruments supported by its clearing schedulesand necessary Inter Branch Debit Advice (IBDA)from the representatives of branches.
The diskettes received from the branches aremerged and transferred to a diskette, which is tobe presented in the Clearing House at BangladeshBank.
Preparation of Summary Schedule and House Sheet.
Sorting the instruments Bank-wise as well asBranch-wise and stapling the instruments with theschedules accordingly.
Preparation of summary Outward Clearing Register.
Passing the entries by Main Branch at the time ofsending the instruments to Bangladesh BankClearing House are as under:
For Main Branch/ Local Office:
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Debit : Suspense A/C – Clearing Receivable.Credit : Sundry Clients A/C / other A/Cs.Credit : Head Office A/C (Responding the IBDA ofBranches)
[5.3.2] ACTIVITIES OF INTER BANK CLEARING HOUSEAT BANGLADESH BANK:
Handing over the diskette and House sheet to theComputer Section of the Clearing House.
Handing over the bank-wise sorted instruments tothe representatives of the respective Bank.
Diskettes received from different Banks aremerged in the Computer Section of Clearing Houseand summary House Sheets of all Banks areprepared separately.
Handing over the summary House Sheet of the Bankto the respective representative of the Bank.All instruments received and delivered are
Printed in the Summary House Sheet, which is asunder:
BASIC Bank Limited1st Clearing, Dhaka Date: …………
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No. OfChequedelivered
Amounts
Nameof theBank
No. OfchequeReceived
Amounts
Net amount receivable / Payable Tk.
Thus if the delivered amount is greater than the receivedamount, calculate the receivable amount which is credited tothe respective bank account maintained with Bangladesh Bank.But, if the delivered amount is less that the receivedamount, calculate the payable amount, which is debited fromthe respective bank account with Bangladesh Bank.
Representatives of the banks return to theirrespective Main Branch or Local Office with theinstruments and diskette that received from theClearing House.
[5.3.3] INWARD CLEARING AT BRANCH LEVEL (2ND
CLEARING HOUSE):After having the instruments from the Messenger, the branchchecks it out with their books of account and recordswhether they can honour all the instruments received fromthe Clearing House. If the branch dishonors any instrumentfor any reason, they have to return the instrument(s) bydebiting Head Office A/C (Main Branch / Local Office) forthe total value of the instruments returned unpaid andpassed the following entries:
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Debit: SB / CD / CC / STD A/C of the clients, PayOrder A/C / D.D. Payable A/C / Draftpaid without Advice A/C etc.
Debit: Head Office A/C (Main Branch) for the amountof dishonoured instrument(s) if any.
Credit: Head Office A/C (Responding the IBDA of MainBranch).
The branch then prepares the return Memo for each returnedinstrument that contains instrument No., Amount and reasonfor its dishonor and recorded it in the Cheque ReturnRegister. Now the instruments are enclosed with the ReturnMemos and are sent to the Main Branch / Local Office withInter Branch Debit Advice (IBDA).After receiving the returned instruments from the branches,instruments are encoded in the diskette at Main Branch /Local Office and perform the following activities:
Preparation of schedule,
Preparation of outward clearing return register,
Sorting the instrument bank-wise as well as branch-wise,
Stapling the instrument(s) with the schedule.
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Chapter SIX
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Data Analysis & Findings
Position on Fixed Assets
Year 2012 2011 2010 2009 2008
FixedAssets(millionTK.)
526.82 364.46 283.12 232.65 228.36
Comment: I found that The BASIC BANK Fixed assets are
increasing over the year. It is holding more liquidity
position. Total assets of the bank have increased from TK.
228.36
million in 2008 to TK. 526.82 million in 2012.78 | P a g e
Position on Deposits
Year 2012 2011 2010 2009 2008
Deposits 87,693.23 62,650.73 49,259.60 34,501.69 38,368.23
Comment: We see that The BASIC BANK Deposits are increasing
over the year and bank has collected large amount of
deposits in different savings criteria
Position on Profit after Tax:
Year 2012 2011 2010 2009 2008
Profitafter Tax
27.89 976.11 660.93 648.85 549.86
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Comment: I notice that BASIC BANK profit after tax is
increase in 2008-2011 but 2012 is almost decreasing mode.
BASIC BANK increased operating efficiency and increased
revenue both are the reason behind the growth in net profit
in 2011.
Position on Capital Adequacy Ratio:
Year 2012 2011 2010 2009 2008
CapitalAdequacyRatio
10.05 10.13 9.41 13.48 12.04
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Comment: From this trend analysis we have seen that the
Capital Adequacy Ratio of BASIC BANK has Increasing mode in
2009 & after 2010. But, bank also decreased significantly
during 2010 & 2012.
Findings
The employees of the branch are not much smart and
active in rendering customer service.
The bank has limited branch.
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Each and every section of the general banking
department has not computerized.
Number of officers in the general banking department
has not sufficient
The bank has no social service.
The bank has not sufficient products based on the
market demand.
The minimum balance is so high to attract more
customers.
The department of bank has not been efficient to make
profit by satisfying customers.
BBL has not attractive promotional activities.
Very few number of ATM booths.
ATM network of BBL is not efficient.
There is no separate team for the marketing of their
services who might inform the customers about their
different services of the bank.
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Chapter SEVEN
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Conclusion & Recommendations
Conclusion
The Banking arena in recent time is one of the most
competitive business fields in Bangladesh. As Bangladesh is
a developing country, a strong banking sector can change the
socio economic structure of the country. So, we can say, the
whole economy of the country is linked up with its banking
system. There are 54 banks in Bangladesh in which 38 are
indigenous commercial Banks. BASIC Bank Ltd. is a state-
owned scheduled Bank as well as a potential and promising
bank in the banking sector in Bangladesh. As desired, its
functions and activities in the economy are being aligned
with the objectives set by the Government of Bangladesh
since its inception. This bank performs hundreds of
important activities both for the public and for the
government as a whole. It has an outstanding bearing to
thrive our business sector. It has strong performance on
General Banking, Loans & Advances, Industrial credit and
foreign Exchange. By using limited technology and having
limited of branches at home it is increasing the volume of
export-import business including homebound remittances. The
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effective and efficient Foreign Exchange Business of the
Bank helps in the continuous growth and progress of national
economy.
BASIC Bank Limited is, no doubt, playing a vital role in the
economic sector of Bangladesh. I hope, the successful
walkway of BASIC Bank Limited will remain continuous for a
long time and become a role model in the banking sector in
our country.
BASIC Bank Ltd is redefining the traditional banking
concepts and transforming it into relationship banking.
BASIC considers the borrower as clients. The mutual
relationship is the essence of long term success in the
banking industry. The ever increasing competitive nature of
banking business determines the direction of the bank.
Sustainability in better performance is the prime focus in
BASIC Bank.
Recommendation
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To increase the efficiency in customer service the BASIC
Bank should develop its process of providing services. To
get a perfect process of delivering services, the customers
should be asked. The other suggestions are as follows:
The employees of the branch should be more smart and
active in rendering customer service.
The bank can open more branches to reach to more
customers.
Each and every section of the general banking
department should be fully computerized for rendering
better service.
Number of officers in the general banking department
should be increased.
The bank should be more profit concerned as well as to
take part in the social service.
The bank should introduce more products based on the
market demand.
The bank should reduce their minimum balance to attract
more customers.
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The department of bank more efficient to make profit by
satisfying customers.
BBL shall take more attractive promotional activities.
Increase number of ATM booths.
Ensure smooth network to ensure uninterrupted ATM
service.
The software used by BBL for their operations shall be
improved.
Bank should introduce separate team for the marketing
of their services who might inform the customers about
their different services of the bank.
References
Annual report, 2008 – 20012 “BASIC Bank Ltd”
Bishop, E. (2004), Finance of International Trade, Elsevier
Butterworth-Heinemann, Burlington, MA.
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COSO (2004), Enterprise Risk Management – Integrated
Framework: Application Techniques, The Committee of
Sponsoring Organizations of the Treadway Commission,
Jersey City, NJ, pp. 93-104.
General Banking Guidelines of BASIC Bank Ltd.
King, R. (2001), Gutteridge and Megrah’s Law of Bankers’
Commercial Credits, Europe
Publications, London.
Madura, Jeff. (2002-2003) “Financial Markets & Institutions”. 7th
Edition, Thomson South Western.
www.basicbanklimited.com . [Accessed 15 March 2014]
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