Bangladesh University of Professionals

Term Paper on “General Banking Activities of Pubali

Bank Limited”

Course Name: Financial Institutions and Markets

Course Code: FIN 8602

Submitted To
Assoc. Prof. Dr. Md. Shahidul Islam (Zahid)
Adjunct Faculty
Bangladesh University of Professionals (BUP)

Submitted By
Group 2 (Divergent)
Sadia Binta Mizan Ev18018012
Nasrin Akter Ev18018032
Md. Ishtiak Ahmed Sazal Ev18018038
Ummay Habiba Ev18018040
Akhlaq Ur Rahman Ev18018042
Date of Submission: 8th May 2020
 Acknowledgment

At the very outset, we are grateful to Allah for blessing us with the strength and ability to
develop, as well as for the term paper in a scheduled time in spite of various difficulties.

It gives us immense pleasure to thank a large number of individuals for their cordial
cooperation and encouragement which has contributed directly or indirectly in preparing this
report. Firstly, we would like to express our thanks to our faculty for his cordial guidance and
feedback that made things a lot easier for us. He kept us on track to complete this report with
required suggestions, which were crucial in making this report as flawless as possible.

A very special gratitude goes to our friends and colleagues for their extremely kind support
and timely feedback regarding the guidelines and deadlines of paper completion.
 Executive Summary

Pubali Bank Limited is a reputed private commercial bank established on May 20,1984.With
the starting the operation of PBL, the main branch continue its operation .Through its three
core departments, namely General Banking, Advance and Foreign Exchange, its provides all
kinds of banking service to its customers. Throughout our overall study we have mainly tried
to critically review the General Banking Activities of Pubali Bank Ltd. Gazipur Branch.
General banking comprises of account opening, bills, remittance, clearing cash and computer
sections. Through these sections it establishes Banker customer relationship, collects bills for
customers, remit funds of customers from one place to another, honoree cheques drawn on
this branch. General Banking department provides these services in a faster and better
manner. The report focus on background of the study, origin of the study, rational, objective
of the study, limitation of the study, Methodology of the study etc. Secondly the report
focused on overview of PBL contains history, vision, mission, objective, SWOT analysis,
personal banking, training, product and services of PBL and so on. The third section focused
on the system and activities of Pubali bank ltd. The forth section focused on some sort of
problem which we have found from our observation. In this part we also try to recommend
some solution to solve these problem and conclusion based on our study. Through the report
we mainly try to critically review the General Banking Activities Gazipur Branch of Pubali
Bank Ltd.
XECUTIVE SUMMARY
 TABLE OF CONTENTS

Serial No. Topics Page No.

Executive Summary i
Chapter One: Introduction 1-5
1.1 Introduction 2
1.2 Origin of the Study 3
1.3 Statement of the Problem 3
1.4 Objective of the Study 4
1.5 Methodology of the study 4
1.6 Limitation of the Study 5
Chapter- Two: Company Profile 6-15
2.1 Background 7
2.2 Corporate Information 7
2.3 Awards 8
2.4 Management 9
2.5 Organization 9
2.6 Vision 10
2.7 Mission 10
2.8 New Services Scheme 10
2.9 Interest Rate 10
2.10 SWOT Analysis of Pubali Bank 11-12
2.11 Computer Service 13
2.12 Computerization 13
2.13 Government Intervention 14
2.14 Personal Banking 15
2.15 Training 15
Chapter- Three: Analysis 16-33

3 Introduction 17
3.1 Definition of General Banking 17
3.2 General Banking Activities of Pubali Bank Limited, 18
 Gazipur Branch,Gazipur
3.2.1 Deposit Collection 18
3.3 Account Opening Department 18
3.3.1 Current Account 19
3.3.2 Saving Account 19
3.3.3 Non Resident foreign currency deposit 20
3.3.4 Short Term Deposit Account (STD) 20

3.3.5 Fixed deposit 20

3.3.6 Private Foreign Currency A/C 20
3.4 Procedure of opening an account 21-22
3.5 TYPES OF ACCOUNT(Minor Account and Joint 23-24
Account)
3.6 Accounts of Special Customers 25
3.6.1-3.6.3 Individual Account, Partnership Account, 25-26
Proprietorship Account
3.7 Remittance Department 27
3.7.1 Telegraphic Transfer (TT) 27-28
3.7.2 Demand Draft (DD) 28-29
3.7.3 Pay Order (PO) 30
3.8 Clearing Department 30
3.9 Types of clearing 30-31
3.10 Clearing process 32
3.11 Accounts Section Pubali Bank Ltd Gazipur Branch 32
3.11.1 Workings of this department 32-33
Chapter- Four: Findings, Recommendations and Conclusions 34-37
4.1 Findings of the Study 35
4.2 Recommendations 36
4.3 Conclusion 37
References 38

© Bangladesh University of Professionals (BUP)

 CHAPTER - ONE
INTRODUCTION

© Bangladesh university of Professionals(BUP) 1

1.1 Introduction

Banking has a long and rich history. It started as a result of people’s need. And with ages it
has been playing an important role in fulfilling the dire needs of businessmen and others. As
the size and complexities of business is increasing day by day banking sector is also
providing various innovative services with basic functions to increase size but to reduce the
complexities.

Modern banking is a result of evolution driven by changing economic activities and life
styles. Entering in to a new millennium, banking needs have become more diverse and exotic
than ever before. It is known now that commercial bank is a profit maximizing institution.
Hence it should provide loans to those sectors in which its return is higher. But the
nationalized commercial banks are conducting banking business with different purposes. The
main purpose is not just to make profit but also to maximize the social benefit. The main
functions of commercial banks are as follows:

A commercial bank collects and manages deposits. It provides cheque facilities and interests
for its customer deposits which may be either demand or time deposits of different maturity.

A commercial bank extends credit to a great variety of borrowers through loans as well as by
purchasing securities that are either fully or partly financed by commercial banks.

Commercial banks provide a variety of other services to their customers as for example
remittance facilities, credit information about customers, financial advice, collection of debts
and dues etc.

Banks also provide a number of trust services to their customers. These services may either
corporate trust services, which arise in connection with the issue of bonds; personal trust
services under which they manage property on behave of their

© Bangladesh university of Professionals(BUP) 2

Clients or corporate pension funds that provide retirement benefit for their employees.

1.2 Origin of the Study

This term paper has been prepared as a part of the study materials of Financial Market
program, which is an integral part of the MBA Program.

This term paper on “General Banking Activities of Pubali Bank Limited” was assigned by
our Course teacher Associate Professor, Dr.Md. Shahidul Islam (Zahid), Adjunct faculty
Bangladesh university of Professionals (BUP), Dhaka.

1.3 Statement of the Problem

Pubali Bank Ltd. is one of the largest commercial bank, which plays a vital role in the
economic development of the nation through saving and credit. It diverts and allocates the
funds in all over the country, which are aimed to develop country’s economy and add
national wealth.

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of study how research is done scientifically. In it I study the various steps that will generally
adopted by a researcher in studying his research problems along with the logic behind them.
Researchers not only need to know how the develop certain indices of tests, how to calculate the mean,
the mode, the median and the standard deviation or chi-square, how to apply particular research
techniques, but they also need to know which of these methods or techniques are relevant and which
are not, and what would they mean and indicate and why.
1.4 Objectives of the Study

The objectives of the study are as follows:

1. To investigate the general banking activities of Pubali Bank Limited, Gazipur Branch,
Gazipur
2. To find out the problems (if any) relating to the general banking activities of Pubali
Bank Limited, Gazipur Branch,Gazipur .
3. To recommend some suggestions based on findings

1.5 Methodology of the Study

The methodology of the study has been designed in the following ways:

1. Data Sources

(a) Primary Sources

(b) Secondary Sources

2. Data Collection Methods

The primary data has been collected in the following ways:


Direct communication with employee.

Secondary data has been collected in the following ways:


Annual report of Pubali Bank Ltd.

Web site of Pubali Bank Ltd.

3. Data Analysis Technique

After collecting the data, it was analyzed by Microsoft word. Then the findings were made.
Based on the findings, the present situation was explained and recommendation was made.

© Bangladesh university of Professionals(BUP) 4

1.6 Limitations of the Study
The present study was not out of limitations. But as an internee it was a great opportunity
for me to know the banking activities in Bangladesh - especially of Pubali Bank. Some
constraints are appended bellow:

Lack of Information or Data: Adequate and in-depth well-organized information is

not available for access. Though the officials tried to assist, sometimes their working
pressure couldn't give me proper assistance what I needed. There is some information
which need special permission from top level is not always achievable.

Time Constraint: It is something like impossible to cover the entire Overall Banking
Performance and performance phenomena exploiting a three month time period while
an employee or an officer is awarded with one or two year probationary period to do
his or her particular job.

Secrecy of Information: Some of the information needed to explore the current

marker scenario of the company was not disclosed.

Comparison Status: I have had no opportunity to compare the foreign exchange

banking system of the Pubali Bank with that of other contemporary and common size
banks. I had compared the banks that information is available. It was mainly because
of the shortage of time and internship nature.

Lack of Experience: Though we have prepared many term paper before, we had no
experience of collecting information from banking sector. So inexperience is one of
the main constraints of the study.

© Bangladesh university of Professionals(BUP) 5

 CHAPTER - TWO

COMPANY PROFILE

© Bangladesh university of Professionals(BUP) 6

2.1 Background

The Bank was initially emerged in the Banking scenario of the then East Pakistan as Eastern
Mercantile Bank Limited at the initiative of some Bangle entrepreneurs in the year 1959
under Bank Companies Act 1913 for providing credit to the Bangle entrepreneurs who had
limited access to the credit in those days from other financial institutions. After independence
of Bangladesh in 1972 this Bank was nationalized as per policy of the Government and
renamed as Pubali Bank. Subsequently due to changed circumstances this Bank was
denationalized in the year 1983 as a private bank and renamed as Pubali Bank Limited. Since
inception this Bank has been playing a vital role in socio-economic, industrial and
agricultural development as well as in the overall economic development of the country
through savings mobilization and investment of funds. At Present, Pubali Bank is the largest
private commercial bank having 410 branches and it has the largest real time centralized
online banking network.

It provides mass banking services to the customers through its branch network all over the
country. During the last 5 years the growth rate of bank's earnings is more than 25% on
average.

2.2 Corporate Information

Name of the Company : Pubali Bank Limited

CEO & Managing Director : Mr. Abdul Halim Chowdhury

Legal Status : Private Limited Company

Registered Office : PUBALI BANK LIMITED Head Office, 26 ,

Dilkusha Commercial Area, Dhaka - 1000, Bangladesh. G . P . O. Box. Number :
853.

Authorized Capital : Tk. 20,000.00 million

Paid up Capital : 8,384.51 million

Reserve : 11,920.99 million

Number of Branch : 482 branches

Website : www.pubalibangla.com

© BUP 7
2.3 Awards

Bangladesh Business Award 2009

Pubali Bank Limited achieved the award “Bangladesh Business Award 2009” as the best
Financial Institution in Bangladesh, given by the DHL, a reputed International Courier
Service Provider and the Daily Star, a National Daily News Paper of Bangladesh. Mr. Helal
Ahmed Chowdhury, Managing Director of Pubali Bank Limited received the award from Dr.
Atiur Rahman, Governor of Bangladesh Bank in a colorful function arranged for this purpose
in Hotel Sonargaon of Dhaka City.

Pubali Bank Limited has been honored by BOA

Pubali Bank Limited has been honored by BOA for patronization and support in game in
Bangladesh. The honorary Crest was received by Mr. Helal Ahmed Chowdhury, Managing
Director on behalf of Pubali Bank Limited from General Moin U Ahmed, the Army Chief
and Chairman of BOA. The General Secretary of BOA, Egr. Qutub Uddin Ahmed is seen in
the picture.

Best Rated Bank - 2010

The Industry, a financial weekly, has given the medal of “Best Rated Bank – 2010” to
Pubali Bank Limited for its strong standing towards Capital Adequacy, Income, Loan
Recovery and Corporate Social Services. Mr. Mohammad Farashuddin, the former
Governor of Bangladesh Bank and Chief Guest of the function, handed over the reward
to Mr. Helal Ahmed Chowdhry, Managing Director of Pubali Bank Limited. In the award
giving ceremony, arranged at the National Press Club, Mr. A. Q. Siddiquei, Chairman of
Bangladesh Commerce Bank, Mr. Md. Shahjahan Khan, former Senior Vice President of
Dhaka Chamber of Commerce & Industry were present in the function as Special Guests.
Mr. Enayet Karim, Editor of The Industry presided over the ceremony.

Best Banker 2011

Mr. Helal Ahmed Chowdhury, Managing Director of Pubali Bank Limited, has been
honored as the “Best Banker 2011” by the top financial weekly, the Artha Kantha.
The honorable Commerce Minister of the People’s Republic of Bangladesh, L.
Col.(Retd.) Mr. Faruque Khan, handed over this medal, being Chief Guest of the
function arranged in Westin Hotel of Dhaka City. Mr. A. K. Azad, President of
FBCCI, was present as Special Guest.

© Bangladesh university of Professionals(BUP) 8

2.4 Management

The management of the bank is vested on a Board of Directors, subject to overall

supervision and directions on policy matters by the board that is constituted in terms of
Bangladesh Bank (Nationalization) Order 1972. Board of Directors, constituted by 13
(Thirteen) members, has authority to organize, operate and manage its affairs on
commercial consideration within the Board Policy of government. There are directors
appointed by the government. Other members of the Board including M.D are also
government appointed out of that at least three have the experience in the field of Finance,
Banking, Trade, Commerce, Industry and Agriculture. The managing director is the chief
Executive of Bank.

2.5 Organization

Pubali bank limited is a leading private commercial Bank. Which started Pubali bank limited
is a reputed private commercial bank established on May 20,1984. Open the branch at 26
dilkusha commercial area (local office) p.s motijheel district Dhaka. Within very short
period of time it has been able to creating image for itself and has earned significant
reputation in the country’s banking sector as a bank of vision. Presently it has 482 branches,
comprehensive and competitive banking service to its clients.

Figure: 2.1 Functional Hierarchy

Head Office

G.M. Office

Area Office

Regional Office

Branch

© Bangladesh university of Professionals(BUP) 9

2.6 Vision
Providing customer centric lifelong banking service.

2.7 Mission
1. High quality financial services with the help of the latest technology.

2. Fast and accurate customer service.

3. Balanced growth strategy.

4. High standard business ethics.

5. Steady return on shareholders' equity.

6. Innovative banking at a competitive price.

7. Attract and retain quality human resource.

8. Firm commitment to the society and the growth of national economy.

2.8 New Services Scheme

Financing IT Sector
Financing of Industries
Ready Cash
Windows for SMEs
Loan to Travel Agencies
Loan to Diagnostic Centers
Escrow Account
Gift Cheque
Medical Equipment Loan
2.9 Interest Rate:

© Bangladesh university of Professionals(BUP) 10

Pubali Bank diversified its rate of interest on loan and advances in compliance with the
interest rate policy declared by the government in 2005. To encourage the agricultural sector
the rate of interest fixed to 2.0-16.0 percent and to increase the rate of industrial production
and services industry, the rate of interest rate is fixed to 9.0-11.0 percent and 13.0 percent.
Rate of interest of Pubali Bank is given below:

Table: 2.1 Interest rate of Pubali Bank

Deposit Loan and Advance

Year Savings Short Fixed Current Agricultural Industrial Consum

Account term deposit sector sector er loan
deposit account account
account

2016 5.00 % 3.50 % 7.00-8.00 00 2-8% 12.0- 14.00%

% 14.00%

2.10 SWOT Analysis of Pubali Bank

Each and every organization should be aware of their strengths, weaknesses, opportunities
and threats. This analysis is known as SWOT analysis. The central purpose of SWOT
analysis is to identify strategies that fit or match a company’s resources and capabilities
according to the demand of environment in which company operates. So the strategic
alternatives generated by a SWOT analysis should be built on company’s strengths in order
to exploit opportunities and counter threats and to correct weaknesses.

SWOT analysis explains environment of an organization in two broad ways. They are:

a) Internal Environment Analysis: It includes strengths and weaknesses.

b) External Environment Analysis: It includes opportunities and threats.

SWOT analysis – Pubali Bank

During my internship period in Pubali Bank I have found some aspects relating to the Bank’s
strengths, opportunities, weaknesses and threats, which I think, affect the bank’s
performance. These are given below:

© Bangladesh university of Professionals(BUP) 11

Strengths
As a large bank, it has qualified and experienced manpower.
Branch location is suitable for business.
Bank’s assets position is quite satisfactory and now there is no fund crisis.
Bank has requisite wealth to sustain in the various challenges of market
economy
Being a nationalized banking organization, it always gets government support in all
of its operations.

Weakness

As many employers retired from the bank, there is a crisis for manpower in the
bank.
Bureaucrat official process hampered the daily internal workflow.
Lack of motivation for the workers.
Low salary structure for the employees.
In some cases management-employee relation is not good.

Opportunities
Expansion of new investment areas.
Scope for automation will open a big door of opportunity.
In case of fund crisis Pubali Bank gets government support.
The bank undertakes need-based training program.

Threats
Newly developed privatized and foreign banks.
Facing a great competition with other commercial banks and financial
institutions.
Loan recovery systems are very weak.
Policies are not practiced properly.

© Bangladesh university of Professionals(BUP) 12

2.11 Computer Service
To ensure qualified customer service Pubali Bank has started computerization corporate
client service and one stop service. 406 branches have already been computerized and a
massive computerization program is going on. Pubali Bank Limited, first among the
Nationalized Banks in Bangladesh, has introduced One Stop Service. To facilitate the
foreign exchange service, Pubali Bank has launched Pubali bank first among the
nationalized commercial bank, has introduce ATM service system in its 12 branches. The
bank launched Website, Reuter Service, Internet Service and Ready Cash Service. The bank
has taken a plan to launch shared ATM system in various important places.

2.12 Computerization
Pubali Bank starts its computerization process at December, 1989. After that it expands its
computerization process by establishing RISE system (RS 16000) OS/2, LAN etc. Up to this
month 406 branches are computerized system. Besides this, ‘One Stop’ is being given in its
30 branches. Moreover, Pubali Bank is serving to the customers in the following ways:

Foreign exchange business and standard of customer services are being

increased and speed up of information flow by using the computerization
system LAN (Local Area Network) and WAN (Wide Area Network).
It has established Pubali Exchange Company Srl. 100% owned subsidiary company of
Pubali Bank Limited established in 1984. Sends money from Rome through
Electronic Fund Transfer ( EFT ) system by which Beneficiaries at Dhaka city get
remittances on the next working day of remittances from Rome & Milan.
Beneficiaries at other 63 District towns & other locations where courier services are
available get remittances on the 2nd working days of remittances from Rome &
Milan. The beneficiaries, who are maintaining accounts with other Pubali Bank
Limited branches in Bangladesh, will be able to withdraw money within 1 to 3 days
of sending remittances.
Pubali Bank Wage Earners Branch established electronic link with its branch in
Middle East through which remittance is sent. Besides this, five electronic links are
in implementation process in Oman, Qatar and Bahrain.

© Bangladesh university of Professionals(BUP) 13

 IFRMS (Instant Financial Reconciliation and Massaging System) has enabled the
bank to remit fund by DD, TT and Inter Branch Debit/Credit advice. This has been
started as an experimental but this system will be started among 300 branches soon.

2.13 Government Intervention

Financial services have traditionally been the subject of close government scrutiny and it is
expected that exchange rates, interest rates and terms of credit should be monitored in the
public interest. In recent years governments have tried to use interest rates, credit
regulations and informal controls on banks as a means of managing the supply of money in
the economy in an effort to increase or reduce consumer spending and to hold or promote
investment in business. From 1976 to now, these policies have added a new dimension of
risk and uncertainty to financial markets, which have already fluctuated for various reasons
such as inflation, exchange rate, oil crisis etc.

Sometimes government is a big problem for the nationalized bank in Bangladesh.

Government forced to the nationalized bank to lend to government’s priority sector, state-
owned sectors, state-owned enterprises, sick industries, borrowers with political influence as
well as provide exemption schemes to fulfill its pre-election commitment. The loan
exemption program of 1986-87 and 1991-92 are 11.37% and 25.56% respectively of total
bank loan outstanding. As a result nationalized commercial banks are burdened with very
large classified loans (32% of total loans) against which very large provisions are made
which affect profit position very adversely. Classified loan in the country’s banking sectors
on June 30, 1996 was
33.0% of total loans. It was 34.9% on December 31, 1993. Net income of local bank is
reduced drastically for maintaining very large provisions for bad debts and interest suspense
accounts.

© Bangladesh university of Professionals(BUP) 14

2.14 Personal Banking
Pubali Bank Limited extends all the major personal banking facilities and services to its
customers with its skilled manpower and largest network of around 406 branches covering
all the urban and remote rural areas of Bangladesh.

Pubali Bank Ltd. provides Local and Foreign Remittance in the quickest possible time.
Foreign Remittance is available in both T.C and taka draft.

1. Transfer of fund from one branch to another by

- Demand Draft saving A/C
- Mail Transfer FDR A/C
- Telegraphic Transfer Trade Finance
2. Transfer of fund on Standing Instruction Agreement
3. Collection of cheques through clearing house.
4. Issuance of payment order.
5. Locker facilities for safe keeping of valuable.
6. Corporate client services with computerized systems at selective branches.

2.15 Training
Pubali Bank Training Institute 52-53 Dilkhusha, Motijheel, Dhaka, 1000 Dhaka,
Bangladesh, training institutions have been conducting training program covering total
banking activities in order to impart training to all categories of officers and staff of Pubali
Bank.

© Bangladesh university of Professionals(BUP) 15

 CHAPTER - THREE
ANALYSIS

© Bangladesh university of Professionals(BUP) 16

3. Introduction
General banking provides the foundation of banker customer relationship through opening
account. This is the most busy department and the daily transaction of concerned to the
customers for drawing or depository money, Selling of instruments, collection of their
instruments providing other additional services to them and keep customer section busy.
Officers of this dept should possess the required behaviors for optimum satisfaction of the
customers. The Bank provides different type of accounts and special type of savings scheme
under general Banking. For proper functioning and excellent customer service this
department is divided into various section namely as follows

3.1 Definition of General Banking

General banking department performs the core functions of bank, operates day-to-day
transactions of banking operation. Every day it receives deposits from customers and meets
their demand for cash. It opens new accounts, remits customer’s money from one place to
another through issuing bank draft, pay order, telegraphic transfer, collects all bill like Local
cheque collection, Inward bill collection and outward bill collection for customers. Since
bank is bound to provide these services every day, general banking is also known as retail
banking.

GENERAL BANKING

Account opening Remittance Cash Clearing Accounts

Section
Section

© Bangladesh university of Professionals(BUP) 17

3.2 General Banking Activities of Pubali Bank Limited, Gazipur Branch,
Gazipur:

As far as Pubali Bank Ltd is concerned, it is one of the top in all-domestic commercial banks
in Bangladesh. Pubali Bank Ltd. extends all the Banking facilities and services to customer.
The Bank has a very wide network of activities and services both in urban and rural areas
through its 410 branches all over the country.

However, Pubali Bank Ltd- Gazipur branch works with mostly all banking operations, which
are normally performed by every commercial bank. It has basically following departments
under which it operates all functions of bank diligently. These are mainly:
Account opening department
Remittances department
Clearing department
Accounts department
Cash department
Credit department

3.2.1 Deposit Collection:

In the prevailing situation, a mobilization of deposit has become very competitive and as a
result the average cost of fund for the banks in the private sector has increased compared to
the previous year.

Types of deposit:
Current deposits
Savings bank deposits
Fixed deposits
Special Notice Time deposit(SND)

3.3 Account Opening Department:

This department is responsible for the opening and closing of accounts. In consideration of
Pubali Bank Ltd Gazipur Br. Opening and continuing to maintain any account, the Account
Holder/Depositor or Investor would be bound by the terms and conditions written on the
account opening form.

© Bangladesh university of Professionals(BUP) 18

The first part establishes the preference regarding the type of account to be maintained. The
various choices offered in this regard are:

Current Account
Saving Account
Non Resident foreign currency deposit
Fixed deposit Account
Short Term deposit
Private Foreign Currency A/C

3.3.1 Current Account:

The current account is the most common account and the most preferred amongst business
concerns. There is no restriction on the amount of withdrawal. Current account enables the
client to do cash transactions in a more efficient manner.

Features:-

Current Accounts can be opened in the PBL Gazipur Br. with the sum not less than Tk
1000/-
No Profit
Account close charges Tk150
Service charges for maintaining minimum balance Tk100
Online Charges Tk100

3.3.2 Saving Account:

In saving account Interest bearing and checkable with some restriction

Features:-
The minimum balance requirement for opening the account is Tk500/-.
There can be profit or loss on the investment of the Customer’s funds deposited with
the bank and this amount shall be acceptable to the Customer. The profit is paid half
yearly.
Withholding tax on profit @ 10%
No Service Charges to close the account
Service Charges for maintaining minimum Balance Tk50

© Bangladesh university of Professionals(BUP) 19

3.3.3 Non Resident foreign currency deposit:

All non-residents of Bangladesh can open this interest bearing account in the form of term
deposit with a minimum amount of $1000 or equivalent.

3.3.4 Short Term Deposit Account (STD):

A term deposit is a deposit that is made of a certain period of time. At the end of
specific period the customer is allowed to with draw the principal amount.

Features:-
Fixed Profit
The longer the period for which the amount is kept higher is rate of interest.
Term Deposit usually for the period of three months, six months, One year.

3.3.5 Fixed deposit Account:

Interest bearing and get mature in definite period of time like one year or six month.

Features:-
This deposit is fixed
Long term basis
Below 10 lac this branch offer interest rate is 11% and 10 lac or above but below
50 lac interest rate is 11.50%

3.3.6 Private Foreign Currency A/C:

Bangladeshi National residing abroad or foreign nationals may open this a/c with
deposit mode.

Features:-

The account holder can freely transfer entire amount in foreign currency
anywhere he choose or convert BD taka currency.
The account holder may nominate his nominee to operate the account.
No initial deposit is required.
Any person/firm/org. who earns foreign currency can open foreign currency
account PBL.

© Bangladesh university of Professionals(BUP) 20

3.4 Procedure of opening an account

The Account Opening Form:

When a client comes to the Gazipur Br., and makes a request for opening of an A/C. The
officer says that first fill up a prescribed application form.

Completion of the Form:

The name, occupation, and complete address of the person opening the account are written in
the columns that are provided in the form. Signatures are obtained from the customer where it
is required. These signatures should be usual signatures and he would operate the account
with them.

Introduction:

The introduction of a current account holder is accepted for the opening of either a current
account or a saving account. The introducer should be Account Holder. The signature of the
account-holder introducing the account is obtained at the place provided for in the account
opening form.

Specimen Signature Card, Cheques Book Requisition, and Online Form:-

The signatures of the client are obtained on a specimen Signature card Cheque book
requisition and online form. These specimen signature cards are obtained in duplicate with
two signatures on each card from the customer. Every time a Cheque is received for a
payment from the client, the signature on the Cheque are verified by comparing them with
the Specimen Signature Card.

Signature Difference Form:

The signatures of the client are obtained on a signature difference form if his / her
signatures differ from the computerized National Identity Card.

Vernacular Form:

The signature of the customer is also obtained on the vernacular form if he / she signs in
a language other than English.

© Bangladesh university of Professionals(BUP) 21

Account Number:

When all the formalities are completed then the final approval of account has to be taken
from the Branch Manager. After obtaining approval of the branch manager an account
number is allotted to the customer all the information is entered into the computer. Then
that account number is written on the Cheque Book, Specimen Signature cards and account
opening form.

Send the form to Head Office :

After fulfill all the requirement and verify the form from operation manager the account
opening form send to Head Office and make request to issue the printed cheque book.

Issuance of A Cheque book :

After opening an A/C with the bank, the A/C holder receive a letter of thanks from Head
Office then after receiving this letter client come to bank and makes a request in the name
of bank for the issuance of a Cheque book. The A/C holder mentions title of A/C, A/C
number, signs it properly.

Entry of A Cheque book :

Before issuance of a Cheque book, Gazipur br. the employee performs certain functions.
They include:

Stamping requisition slip that is in Cheque book.

Enters it in the Cheque book issue register.
Check whether or not a senior officer has verified the signatures, if not then first
gets them verified.

After entry in the manual register, the employee issues the Cheque book to the A/C holder
with his/her signature on the register.

To close an account:
Account holder requires applying in a specific form with full signature.

He/she/they must surrender the unused leaves/cheque book provided by the bank.
Verification of signature and approval by operation head.
Close the account.

© Bangladesh university of Professionals(BUP) 22

On closure of the account, the bank will pay the credit balance (if any) of the account and any
profit due to the customer. The customer shall surrender the unused cheque books/leaves
along with the requisition slip and other materials (if any) supplied by the bank for operation
of the account.

3.5 TYPES OF ACCOUNT:

1 Accounts of General Customers

Minor Account
Joint Account

2. Accounts of Special Customers

Individual Account
Proprietorship Account
Partnership Account

3.5.1 Minor Account:

Opening Procedure:-

The natural guardian who signs both Account Opening Form and Specimen
Signature Card can open account in the name of minor.

Title of Account:-

The title of account should clearly indicate both the names of minor as well as
guardian in the following manner:-

e.g. Imran Rafique ( minor) Muhammad Rafique (Guardian)

Special Instructions:-

The guardian will continue to operate the account even if minor attains the age of
majority.

© Bangladesh university of Professionals(BUP) 23

Documents:-

Computerized National Identity Card of Guardian and 2 copies passport size

photographs
Form “B” of minor and 2 copies passport size photographs attested by
Guardian

In case guardian is appointed by the court of law then attested copy of

guardianship certificate is obtained and placed on record.

3.5.2 Joint Account:

These are the account of two or more persons who are neither partners nor trustees.

Account Opening Procedure:-

Title of Account:

Title of account holder should mention the names of all the joint account holder

Special Instruction:

At the time of opening the account clear and specific instructions should be obtained
regarding operation of the account and payment of the balance at the death of one or more
joint account holders in the following manner:-
The account shall be operated by any joint account holders singly.
By either or survivor singly.
By any two or more joint account holders or by any two or more survivors
jointly.
By all the joint account holders jointly.
By all the survivors jointly.

These instructions as far as possible should be obtained in handwriting of the parties

concerned, under the signature of all the joint account holder.

Documents:

Computerized national Identity Card of all the joint account holder.

© Bangladesh university of Professionals(BUP) 24

Mode of Signature:-

All joint account holders are required to sign as applicant and in the column of
special instructions.
Specimen Signature of only those joint account holders are required who are
authorized to operate the account.

3.6. Accounts of Special Customers

3.6.1 Individual Account

When a single man or woman opens an account in his or her own name and has the right to
operate, it is called individual A/C.

Account Opening Procedure:

Title of Account:

Title of Account should mention the name of the person who operates the account.

Special Instructions:

At the time of opening the account clear and specific instructions should be obtained
regarding the nominee of the account holder means after the death of the account holder who
will operate the account.

Documents:

Computerized national Identity Card.

Proof of Income if he / she is a salaried person then the pay slip or salary
certificate of that person.

3.6.2 Partnership Account:

“Partnership” is a relationship between persons who have agreed to share profits of a

business carried on by all or any of them acting for all.

Account Opening Procedure:

Title of Account:

© Bangladesh university of Professionals(BUP) 25

Title of account must be in the name of the firm as declared by the partner Tk

Operational Instructions:

Operations on the account must be allowed strictly in accordance with the

instructions given in partnership mandate and Declaration in terms of section 25 of
Partnership Act 1932.
According to Partnership deed, if given.

Documents:
Copy of Computerized National Identity Card of all the partner Tk
Copy of registration Certificate (if a registered firm)
Letter of request to open the account on the letterhead of partnership.
Partnership Stamp
Partnership Deed
Third Party Mandate, if third party is authorized to operate the account.

3.6.3 Proprietorship Account

When the owner of the firm operating singly, open an account in his firm name.

Account Opening Procedure:

Title of Account:

Title of account must be in the name of the proprietorship concern.

Special Instructions:

In case of proprietorship concern, the special instruction should cover the style of the account
and the name of the person who will operate the account as sole proprietor. For example, if
the account to open is in the name of “Rahim Cloth Store”, the person who is the sole
proprietor should declare as such.

Documents:-

Computerized National Identity Card (CNIC) of proprietor.

Declaration for proprietorship concern.
Proprietorship Stamp.
Letter of request to open the account on the letterhead of proprietorship. Third
party Mandate, in case any other person has been authorized by the proprietor to
operate the account.
Tax Identification Number (TIN).

© Bangladesh university of Professionals(BUP) 26

Made of Signature:-

All the trustee are required to sign the account opening form, Specimen Signature Card,
and Cheque book requisition slip in their official capacity.

3.7 Remittance Department

Remittance is used to transfer of funds denominated in Bangladeshi Taka between banks

within the country. It is an order from the Issuing branch to the Drawer Bank/ Branch
responsible for payment of a certain sum of money to the beneficiary. The payment
instruction is sent by Telex / Telegram and funds are paid to the beneficiary through his
account maintained with the Drawer branch or through a pay order if no a/c is maintained
with the drawer branch.

The cash department does remittance of cash. Instruments of local remittances at

PBL branches are follows:

Remittance

Telegraphic
Demand Draft
transfer Pay Order
TT DD

3.7.1 Telegraphic Transfer (TT):

Telegraphic Transfer is the most rapid and convenient but expensive method. There are
different modes of telegraphic transfer such as Fax, Mobile, Telephone Telex, and Telegram.
If an applicant wants to transfer money quickly to the pay in another city or district he /she
may request the banker to send it by TT.

1. On receipt of T.T payment instructions the following entries are passed by the Drawer
branch if the T.T is found to be correct on verification of Test Number.

© Bangladesh university of Professionals(BUP) 27

i) Dr. PBL General A/C Cr Remittance Awaiting Disposal- T.T Payable A/C

ii) Dr Remittance Awaiting Disposal-T.T Payable A/C Cr Client’s Account A/C.

Procedure of Issuing TT:

Cash Dept. receive cash

Customers fill up
with commission &
a printed
15%VATon commission,

telephone charge Tk. 40

On receiving debit ticket LR dept prepares TT

L.R dept. make entries into massage in duplicate for

the register & issue TT and drawee branch and

3.7.2 Demand Draft (DD):

DD is a one kind of bill of exchange. DD is the most frequently used mode of inland
remittance. DD is an unconditional order of the bank from one branch to another branch to
pay certain amount of money to a certain person on demand. It is applicable outside the
Dhaka City. The DD generally issued for party’s safety. If there is a huge amount to bear one
place to another, then customer can do the DD and bear it to his destination instead of cash.

Precautions for Demand Draft :

1. Get the application form properly filled up and signed by the applicant

2. Complete the lower portion of the Application form meant for Bank’s Use.

© Bangladesh university of Professionals(BUP) 28

3. Calculate the total amount payable including Bank’s commission/charges etc.

4. If a cheque is presented for the payment of the DD officer should get the cheque duly
passed for payment by the competent authority and record the particulars of DD on the back
of the cheque.

5. If the purchaser desires his account with the branch to be debited for the amount of DD
the officer should get the A/c holder’s signature verified properly, from signature card on
record of the branch and debit client’s a/c for the total amount including commission
charges etc.

6. If cash deposit is desired, request the purchaser to deposit the money at the
Teller’s counter.

7. The teller, after processing the application form, cash or cheque, will validate the

Application form.

8. The first copy of the Application form is treated as debit Ticket while the second copy
is treated as Credit Ticket and sent to Remittance Department for further processing. The
third copy is handed over to the Applicant as customer’s copy.

Each branch maintains a running control serial number of their own for issuance of
DD to each Drawee Branch. This control serial number should be introduced at the
beginning or each year which will continue till the end of the year.

Procedure of issuing D.D:

Customers fill up a Cash dept. Receive The applicant form

printed Application cash with commission with verified signature

by L/R allows to make

entries in to the

register and issue inter

bank credit advice in

Cash dept. verified the signature of
favor of Drawee
the client and checks the balance

of a/c L/R dept. Debit customers

© Bangladesh university of Professionals(BUP) 29

3.7.3 Pay Order:

Pay order is a negotiable instrument made by the bank, on account of a customer, to pay on
order the specified amount to the directed person (payee).

Use of Pay Order:-

Pay orders are used to make payment or to transfer money, with in the same city. Pay order is
always drawn on the bank that has issued it. The main advantage of pay order is that it cannot
be dishonored by the bank. Pay order can be endorsed if it is not crossed. The payee may
present pay Order for payment either over the counter for cash payment or the payee may
transfer credit to his account.

The current rate schedule of Pay Order is as follows:

Issuance of Pay Order Tk 50/- for a/c holder

Tk 500/- for non-a/c holder'

3.8 Clearing Department

Clearing: Clearing is a system by which a bank can collect customers fund from one
bank to another through clearing house.

Clearing House: Clearing House is a place where the representatives of different

banks get together to receive and deliver cheque with another banks.

Member of Clearing House: Pubali Bank ltd. is a scheduled Bank. According to

the Article of Bangladesh Bank Order, 1972, the banks, which are the member of the
clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque
drawn upon one another through the clearinghouse.

3.9 Types of clearing:

There are two types of clearing:-

1. Inward Clearing

2. Outward Clearing

© Bangladesh university of Professionals(BUP) 30

Outward Clearing

When the financial instruments like P.O., D.D., and Checks collected by specific branch
within the Dhaka city and not of their own branch then the Outward clearing will be
functioned. The procedures of Outward Clearing are followed:

The instruments with schedules to the branch of Pubali Bank Ltd-Gazipur Branch.
With issuing an Inter Branch Debit Advice (IBDA).

Clearing stamps are affixed on the instruments.

Checked for any apparent discrepancy.

The authorized signature endorses instruments.

Particulars of the instruments and vouchers are recorded in the 'Outward Clearing'
register

The clients receive the duty signed instruments and also branch code number
affixed on the instruments.

Inward Clearing

When the checks of its customer are received for collection from other banks, the following
should be checked very carefully-

The check must be crossed.

The check should not carry a date older then the receiving date for more than 6
months.

The collecting bank must check whether endorsement is done properly or not.

The amount both in words and figures in deposit slip should be same and also it
should be in conformity with the amount mentioned in words and figures in the
checks.

© Bangladesh university of Professionals(BUP) 31

3.10 Clearing process

i. Stamps Put On the Cheques

ii. Crossing the cheques

iii. Clearing Stamp

iv. Endorsement Stamp

v. National Institutional Facilitation Authority

VI. Send Report to the Bank

vii. Delivered Cheques to Respective Banks

viii. Credit the Customer Account

3.11 Accounts Section Pubali Bank Ltd Gazipur Branch:

Accounts Department is called as the nerve Centre of the bank. In banking business,
transactions are done every day and these transactions are to be recorded properly and
systematically as the banks deal with the depositors’ money .Improper recording of
transactions will lead to the mismatch in the debit side and in the credit side. To avoid these
mishaps, the bank provides a separate department; whose function is to check the mistakes in
passing vouchers or wrong entries or fraud or forgery. This department is called as Accounts
Department. If any discrepancy arises regarding any transaction this department report to the
concerned department.

Besides these, the branch has to prepare some internal statements as well as some statutory
statements, which are to be submitted to the the Head Office. This department prepares all
these statements.

3.11.1 Workings of this department:

Recording the transactions in the cashbook.

Recording the transactions in general and subsidiary ledger.

Preparing the daily position of the branch comprising of deposit and cash.

Preparing the daily Statement of Affairs showing all the assets and liability of the
branch as per General Ledger and Subsidiary Ledger separately.
© Bangladesh university of Professionals(BUP) 32
Making payment of all the expenses of the branch.

Recordings inter branch fund transfer and providing accounting treatment in this
regard.

Preparing the monthly salary statements for the employees.

Preparing the weekly position for the branch which is sent to the Head Office to
maintain Cash Reserve Requirement (C.R.R)

Preparing the monthly position for the branch, which is sent to the Head Office to
maintain Statutory Liquidity Requirement (S.L.R)?
Preparing the budget for the branch by fixing the target regarding profit and deposit
so as to take necessary steps to generate and mobilize deposit.

Checking of Transaction List

Recording of the vouchers in the Voucher Register.

Packing of the correct vouchers according to the debit voucher and the credit
vouchers

© Bangladesh university of Professionals(BUP) 33

 CHAPTER - FOUR

FINDINGS, RECOMMENDATIONS AND

CONCLUSIONS

© Bangladesh university of Professionals(BUP) 34

4.1 Findings of the study

During making this term paper based on Pubali Bank Limited at Gazipur Branch,
following problems are identified:

Account opening form is very much informative. It takes about half an hour to
properly fill in the form. When four or five people come at the same time for
account opening purpose, it is very difficult for the relevant officer to provide
satisfied service to the client.
According to some clients, introducer is one of the problems to open an account. If a
person who is new in the Dhaka city wants to open account, it is a problem for
him/her to arrange an introducer of SB or CD account holder. Lengthy process of
Issuing cheque book, Pay order, Bank draft. Job responsibilities are not specified to
each and every employee of this division. ATM booth service is an online popular
service. The bank’s online service is very poor.
Technology that PBL is using for their banking system is not up to date. There are
some international and local banks in Bangladesh; they are very fast and very much
updated. PBL is losing their clients because of lack of technology.
Advertising and promotion are the weak points of Pubali Bank Limited. PBL does not
have any effective marketing activities.

© Bangladesh university of Professionals(BUP) 35

4.2 Recommendations

In view of the facts, the following recommendations are made to the respective
concerned for their consideration and implementation:
1. The authority of the bank should introduce job training for the employees to make
the human resource efficient.
2. The authority of the bank should upgrade the existing marketing strategy to come
to more close to the people.
3. The authority of the bank should introduce different credit cards. Also, they have
to concentrate to establish more ATM booths for their customers.
4. Proper Banking software should be used to get best benefit from this department.
Staff meetings and departmental meetings at the branch level must be increased to
develop service quality.
5. The bank should take an aggressive advertisement campaign to develop a strong
image and reputation in the minds of the potential customers. And the management
should take immediate decision to bring latest technology in the bank for providing
quick service to the clients.

© Bangladesh university of Professionals(BUP) 36

4.3 Conclusions

The banks and other financial institutions have become exceedingly crucial as the countries
Economic development progress. Pubali Bank Ltd. is one of the most potential banks in our
Country. The bank has an expanded portfolio along with its huge assets to face any uncertainty.
PBL is able to quickly adapt with the sudden change of the environment. For instance, recently,
PBL has adapted the online banking and computerized system within a very short period of time.
Moving on to the project topic, the deposits product schemes have a major influence on Pubali
Bank Ltd. Therefore, PBL should give more effort to improve its deposits product schemes.
PBL has no marketing or promotion policies. It is really causing lacking to this section. The
Bank must step forward to create a strong image by promoting their offered deposits product
Schemes. They should upgrade their policies and facilities related to deposits collection products.
In addition to that they can hire some experts who can advise about the products to achieve the
Target. An effective team should be formed with a perfect combination of skilled and experienced
Employees to do research over the deposit collection products and monitor the performance and
The contribution of these deposits product schemes in the overall business. Pubali Bank Ltd. is strongly
positioned in the banking sector of Bangladesh. The employees of Pubali Bank Limited have been
working tremendously for achieving its goals and vision. The Core values of the bank can make it to
stand on the expectations along with raising the assets more in future through ethical banking and its
implementing.

© Bangladesh university of Professionals(BUP) 37

References

Profile of Pubali Bank Ltd.

Annual Report of Pubali Bank Limited, 2016-2017.

Articles of Pubali Bank Ltd.
Foundations of Financial Markets and Institutions, Fabozzi
Different types of Voucher of Pubali Bank Ltd.
Several Newsletters from Pubali Bank Ltd.
Website of Pubali Bank Ltd, Website: www.pubalibangla.com.

© Bangladesh university of Professionals(BUP) 38