Daffodil International University

Institutional Repository

Business Administration Project Report of BBA

2014-12-07

GENERAL BANKING ACTIVITIES OF

PUBALI BANK LIMITED: A STUDY ON
SADARGHAT BRANCH, DHAKA

Dutta, Rajib
Daffodil International University

http://hdl.handle.net/20.500.11948/1317
Downloaded from http://dspace.library.daffodilvarsity.edu.bd, Copyright Daffodil International University Library
 INTERNSHIP REPORT ON

GENERAL BANKING ACTIVITIES OF PUBALI BANK LIMITED:

A STUDY ON SADARGHAT BRANCH, DHAKA

Prepared for
Mr.Sheikh Md. Abdur Rahim
Assistant Professor and Head
Department of Real Estate and Department of
Commerce Faculty of Business and Economics
Daffodil International University

Prepared by
Rajib Dutta
ID No.: 102-11-1571
th
BBA 26 Batch(Major: HRM)
Faculty of Business & Economics
Daffodil International University

Date of Submission: 7 December 2014

LETTER OF TRANSMITTAL
entitled “General
Banking
7 Activities of Pubali
Decembe Bank Limited: A Study
r 2014 on Sadarghat
Mr.Sheik Branch,Dhaka’’. As
h Md. per requirement of
Abdur BBA, I have
completed the
Rahim Internship in Pubali
Assistant Bank Limited. I have
Professor tried to exert all the
and knowledge that I
Head gathered through my
Departm working with this
ent of branch of PBL.
Real Working for three
th
Estate months (6 august to 6
th
and November) in the
Departm Pubali Bank Limited,
ent of Sadarghat Branch
Commer helped me to fulfill the
ce requirements of
Faculty obtaining practical
of learning and
Business subsequently prepare
of this report. My
and
internship in Pubali
Economi Bank Limited was a
cs worthwhile experience
Daffodil and the exposure of
Internatio such an organization
nal would be valuable for
Universit me. Before facing the
y real business world, I
have gathered prior
Subject: knowledge about the
Submiss organization culture.
ion of
the I believe that this
internshi internship program has
p report.
enriched both my
Dear Sir, knowledge and
experience.
It is my
great
pleasure Yours sincerely,
to submit
the
Internshi
p report
…………
…….

Rajib
Dutta
ID No.:
102-11-
1571
Program:
BBA(HR
M)
Departm
ent of
Real
Estate
and
Departm
ent of
Commer
ce
Faculty
of
Business
and
Economi
cs
Daffodil
Internatio
nal
Universit
y

© Daffodil
International
University
i
LETTER OF ACCEPTANCE
his study “General
Banking Activities Of
Pubali Bank Limited: A
Study On Sadarghat
I hereby
Branch,Dhaka”. I
declare
appreciate his diligence
that Rajib
and devotion
Dutta, ID:
completion of partial
102-11-
requirement for the
1571 is a
BBA program of
student
Daffodil International
of
University. This is an
Daffodil
original report prepared
Internatio
by Rajib Dutta under
nal
my supervision and
Universit
guidance. To the best of
y. He
my knowledge this
complete
report is an authentic
d his
work of Rajib Dutta.
internshi
This report is now
p
approved for
program
presentation.
at Pubali
Bank
Limited, I wish him every
success in life.
Dhaka. I
am
pleased
to
confirm
that he-----------------------------
has beenMr.Sheikh Md. Abdur
able toRahim
Assistant Professor
submit aand Head
good Department of Real
report onEstate and Department
of
Commer
ce
Faculty
of
Business
and
Economi
cs
Daffodil
Internatio
nal
Universit
y

© Daffodil
International
University
ii
ACKNOWLEDGEMENT
Rahim, Assistant
Professor & Head of
At first
I Real Estate, Daffodil
would Internatinal
like to University whose
expres direction, guidance
s my and support helped
gratitu me a lot in writing
de to this report.
almigh
ty god It was a great
who pleasure for me to
has work in Pubali Bank
given Limited, Sadarghat
me Branch as an intern. I
opport thank all the
unity employees for being
to go friendly and
throug cooperative. I was
h the taught lots of
total important things
proces through-out my
s of internship career
interns because of their
hip proper attention and
and to co-operation.
write a
report My deepest
in this appreciation and
regard special thanks to
. Pobitra kumar
howlader and S.M
Alam ,officer of
I Pubali Bank,
would Sadarghat Branch
like to who helped me a lot
take during my Internship
the days with valuable
opport advices, guidance
unity and necessary
to information.
expres At last I must
s my
mention the
gratitu
de to wonderful working
my environment and
Interns group commitment of
hip this bank that has
Adviso enabled me a lot
r, deal to do and
Mr.Sh
eikh observe the banking
Md.Ab activities during my
dur internship period of
three
month
s. ©
Finally Daff
I odil
Inter
conve
nati
y my onal
sincer Univ
e ersit
thanks y
iii
to my
friends
who
inspire
in
differe
nt
ways
to
compl
ete the
report
and
the
course
as
well.
EXECUTIVE SUMMARY
Study on Sadarghat
Branch”. Pubali Bank
Limited is a reputed
In theprivate commercial
last bank established on
term ofMay 20,1984.With
final the starting the
year ofoperation of PBL, the
Bachel main branch continue
or ofits operation
Busine .Through its three
ss core departments,
Admini namely General
stration Banking, Advance
(BBA) and Foreign
course,Exchange, its
I wasprovides all kinds of
sent tobanking service to its
Pubali customers.
Bank Throughout my
Ltd overall study I have
(PBL) mainly tried to
to havecritically review the
a General Banking
practic Activities of Pubali
al Bank Ltd. Sadarghat
exposu Branch. General
re onbanking comprises of
bankin account opening,
g bills, remittance,
activiti clearing cash and
es computer sections.
under Through these
the sections it
progra establishes Banker
m customer
“Gener relationship, collects
al bills for customers,
bankin remit funds of
g customers from one
Activiti place to another,
es ofhonoree cheques
Pubali drawn on this branch.
Bank General Banking
Ltd: Adepartment provides
these vision, mission,
service objective, product
s in aand services of PBL
faster and so on. The third
and section focused the
better project part which
manne called General
r. Banking Activities of
Pubali Bank ltd. Last
The but not the least
report Section focused my 3
focus months internship
on experience which I
backgr learned from PBL
ound Sadarghat Branch as
of thewell as the some sort
study, of problem which I
origin have found from my
of theobservation. In this
study, part I also try to
rational recommend some
, solution to solve
Scope, these problem and
objecti conclusion based on
ve ofmy study.. Through
the the report I mainly try
study, to critically review the
limitati General Banking
on ofActivities Sadarghat
the Branch of Pubali
study, Bank Ltd.
Metho
dology
of the
study
etc.
Secon
dly the
report
focuse
d on
overvie
w of
PBL
contain
s
history,
© Daffodil
International
University
iv
 TABLE OF CONTENTS

Serial No. Topics Page No.

Letter of Transmittal i
Letter of Acceptance ii
Acknowledgement iii
Executive Summary iv
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

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 3 Introduction 17
3.1 Definition of General Banking 17
3.2 General Banking Activities of Pubali Bank Limited, 18
Sadarghat Branch, Dhaka
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 Sadarghat 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
Bibliography 38

© Daffodil International University

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 CHAPTER - ONE
INTRODUCTION

© Daffodil International University 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

© Daffodil International University 2

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

1.2 Origin of the Study

This report has been prepared as a part of the internship program, which is an
integral part of the BBA Program Under this program a student has to take a total of
128 credits. A student has to take a 3-month internship program to an organization.
This will give a practical orientation of his/ her theoretical study. After completion of
the program she/ he has to submit an internship report to the department and
defense the report. So this report is originated as part of the course requirement of
the BBA program.

This report on “General Banking Activities of Pubali Bank Limited” was assigned by
academic supervisor SHEIKH ABDUR RAHIM, Assistant Professor, Daffodil
International University, 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.

© Daffodil International University 3

 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, Sadarghat

Branch, Dhaka
2. To find out the problems (if any) relating to the general banking activities of Pubali
Bank Limited, Sadarghat Branch, Dhaka
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

(1) Primary Sources

(2) Secondary Sources

2. Data Collection Methods

1
The primary data has been collected in the following ways:
Direct communication with clients
colleagues.
following ways:
The secondary data has been collected in the
3 Annual report of Pubali Bank Ltd.
4 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.

© Daffodil International University 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 :

1 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.

2 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.

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

marker scenario of the company was not disclosed.

4 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.

5 Lack of Experience: Though I have prepared many reports before, I had no

experience of internship. So inexperience is one of the main constraints of the study.

© Daffodil International University 5

 CHAPTER - TWO

COMPANY PROFILE

© Daffodil International University 6

2.1 Backgroun

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. Helal Ahmed 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 : 410 branches

Website : www.pubalibangla.com

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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
colorfu 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 Peoples 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.

© Daffodil International University 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 createan image for itself and has
earned significant reputation in the country’s banking sector as a bank of vision.
presently it has 406 branches, comprehensive and competitive banking service to
its clients.

Figure: 2.1 Functional Hierarchie

Head Office

G.M. Office

Area Office

Regional Office

Branch

© Daffodil International University 9

 2.6 Vision
Providing customer centric life long 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:

© Daffodil International University 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
account
deposit account

account

2010 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:

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

2) 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 :
© Daffodil International University 11
 Strengths
1 As a large bank, it has qualified and experienced manpower.
2 Branch location is suitable for business.

3 Bank’s assets position is quite satisfactory and now there is no fund crisis.

4 Bank has requisite wealth to sustain in the various challenges of market

economy
5in all ofBeing a nationalized banking organization, it always gets government support
its operations.

Weakness
in the bank.
2 Bureaucrat official process hampered the daily internal workflow.
3 Lack of motivation for the workers.

4 Low salary structure for the employees.

5 In some cases management-employee relation is not good.

Opportunities
1 Expansion of new investment areas.
2 Scope for automation will open a big door of opportunity.

3 In case of fund crisis Pubali Bank gets government support.

4 The bank undertakes need-based training program.

Threats
1 Newly developed privatized and foreign banks.
financial institutions.
3 Loan recovery systems are very weak.
4 Policies are not practiced properly.

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 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 Computerizatio

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:

1 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).

2 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.

3 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.

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 1 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.

© Daffodil International University 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.

© Daffodil International University 15

 CHAPTER - THREE
ANALYSIS

© Daffodil International University 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

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 3.2 General Banking Activities of Pubali Bank Limited, Sadarghat
Branch, Dhaka:

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- Sadarghat 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 :
1 Account opening department
2 Remittances department
3 Clearing department
4 Accounts department
5 Cash department

6 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 :
1 Current deposits
2 Savings bank deposits
3 Fixed deposits

4 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 Sadarghat 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.

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 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 with drawal. Current
account enables the client to do cash transactions in a more efficient manner.

Features:-

Current Accounts can be opened in the PBL Sadarghat Br. with the sum not less
than Tk 1000/-
1 No Profit
2 Account close charges Tk150
3 Service charges for maintaining minimum balance Tk100

4 Online Charges Tk100

3.3.2 Saving Account:

In saving account Interest bearing and checkable with some restriction

Features:-
1 The minimum balance requirement for opening the account is Tk500/-.
2 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
3profit isWith
paidholding
half yearly.
tax on profit @ 10%
4 No Service Charges to close the account
5 Service Charges for maintaining minimum Balance Tk50

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 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.

1
Features:-
Fixed Profit
2 The longer the period for which the amount is kept higher is rate of interest.

3 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:-
1 This deposit is fixed
2 Long term basis

350 lac interest

Below 10 lac this branch offer interest rate is 11% and 10 lac or above but below
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:-

anywhere he choose or convert BD taka currency.

2 The account holder may nominate his nominee to operate the account.
3 No initial deposit is required.

4 Any person/firm/org. who earns foreign currency can open foreign currency account
PBL.

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3.4 Procedure of opening an account

The Account Opening Form :

When a client comes to the Sadarghat 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.

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 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, Sadarghat 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:
1 Account holder requires applying in a specific form with full signature.
2 He/she/they must surrender the unused leaves/cheque book provided by
the bank.
3 Verification of signature and approval by operation head.
4 Close the account.

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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.

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 Documents:-
1 Computerized
photographs National Identity Card of Guardian and 2 copies passport size
2 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
1 or more joint account holders in the following manner:-
The account shall be operated by any joint account holders singly.
2 By either or survivor singly.
3
jointly. By any two or more joint account holders or by any two or more survivors
4 By all the joint account holders jointly.
5 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.

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 Mode of Signature:-

1special All joint account holders are required to sign as applicant and in the column of
instructions.

2 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:

1 Computerized national Identity Card.

2 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:

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

Operational Instructions:

1Partnership
Operations
instructions given
Act onpartnership
in
1932. the accountmandate
must beand
allowed strictly in
Declaration in accordance with 25
terms of section theof

2 According to Partnership deed, if given.

1
Documents:
Copy of Computerized National Identity Card of all the partner Tk
2 Copy of registration Certificate (if a registered firm)
3 Letter of request to open the account on the letterhead of partnership.
4 Partnership Stamp
5 Partnership Deed

6 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) .

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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 Drawee 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 Drawee branch or through a pay order if no
a/c is maintained with the drawee branch.

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

at PBL branches are follows:

Remittance

Telegraphic Demand Draft

transfer Pay Order
DD
TT

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 Drawee
branch if the T.T is found to be correct on verification of Test Number.

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

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

Procedure of Issuing TT:

cash

with

C commi
Customers fill up
as ssion
a printed
h &

D 15%V

ep ATon

t. commi

re ssion,

ce teleph

iv one

e charge

Tk. 40

e in an
On receiving debit duplicat d
ticket L.R dept. make e for
entries into the register 3 drawee
& issue TT and branch

i
DD is a
P
one kind
of bill of
exchange.
DD is the
most
frequently
used
mode of
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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 with

printed Application verified signature by L/R

cash with commission
allows to make entries in to

the register and issue inter

bank credit advice in

favor of Drawee
Cash dept. verified

the signature of the

client and checks the

balance of a/c L/R

dept. Debit customers

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 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

1 Clearing: Clearing is a system by which a bank can collect customers fund

from one bank to another through clearing house.

2 Clearing House: Clearing House is a place where the representatives of

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

3 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

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 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 :

1Branch.TheWithinstruments
issuing an with
Inter schedules to the
Branch Debit branch
Advice of Pubali Bank Ltd-Sadarghat
(IBDA).

2 Clearing stamps are affixed on the instruments.

3 Checked for any apparent discrepancy.
4 The authorized signature endorses instruments.
5Clearing'Particulars
register
of the instruments and vouchers are recorded in the 'Outward

6 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-
1 The check must be crossed.

26 months.
The check should not carry a date older then the receiving date for more than

3 The collecting bank must check whether endorsement is done properly or not.
4it shouldThebeamount both in words and figures in deposit slip should be same and also
in conformity with the amount mentioned in words and figures in
the checks.

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 3.10 Clearing process

1. Stamps Put On the Cheques

2. Crossing the cheques

3. Clearing Stamp

4. Endorsement Stamp

5. National Institutional Facilitation Authority

VI. Send Report to the Bank

7. Delivered Cheques to Respective Banks

8. Credit the Customer Account

3.11 Accounts Section Pubali Bank Ltd Sadarghat 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:

1 Recording the transactions in the cashbook.

2 Recording the transactions in general and subsidiary ledger.

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

4 Preparing the daily Statement of Affairs showing all the assets and liability of
the branch as per General Ledger and Subsidiary Ledger separately.
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1 Making payment of all the expenses of the branch.

2 Recordings inter branch fund transfer and providing accounting treatment in

this regard.

3 Preparing the monthly salary statements for the employees.

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

5 Preparing the monthly position for the branch, which is sent to the Head Office
to maintain Statutory Liquidity Requirement (S.L.R)?
6 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.

7 Checking of Transaction List

8 Recording of the vouchers in the Voucher Register.

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

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 CHAPTER - FOUR

FINDINGS, RECOMMENDATIONS AND

CONCLUSIONS

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4.1 Findings of the study

During internship period in Pubali Bank Limited at Sadarghat 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.

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4.2 Recommendations

In view of the facts, the following recommendations are made to the respective
concerned for their consideration and implementation:

The authority of the bank should introduce job training for the employees to
make the human resource efficient.

The authority of the bank should upgrade the existing marketing strategy to
come to more close to the people.

The authority of the bank should introduce different credit cards. Also, they
have to concentrate to establish more ATM booths for their customers.

They have no marketing department at all, which create problems in

advertising. So the authority of the bank should establish a standard
marketing department in the bank.

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.
The bank should take an aggressive advertisement campaign to develop a
strong image and reputation in the minds of the potential customers.
The management should take immediate decision to bring latest technology in
the bank for providing quick service to the clients.

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4.3 Conclusions

As the largest nationalized commercial bank Pubali Bank Ltd is operating every corner of the
country providing the banking services to different classes of customers. Modern competitive
banking sector, there one can find a branch of Pubali Bank.

Banks play an active role for the development of the country. Pubali Bank Ltd has made
commendable improvement over the past years. I am proud to get an opportunity to continue
my internee and my career in my organization. I tried to gather experience in General
Banking and summarize all the information within the report. It will also be helpful for the
bank management if they carefully analyze the problem and consider recommendation in
this paper and take necessary actions for corrective measures.

General Banking is one of the main departments of any bank. To take any banking services,
one has to fulfill all the requirements of this department first. The nature of the relationship
between a banker and a customer depends upon the service rendered by the personnel of
general banking department. General Banking department usually give optimum services to
their customers though they have some limitations. If the management of the bank can turn
these limitations positively then they can attain the ultimate goal. I am certain that the
experience that I get through my internship in Pubali Bank will help me a lot in my future
banking profession.

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 Bibliography

1 Profile of Pubali Bank Ltd.

2 Annual Report of Pubali Bank Limited, 2012-2013.

3 Articles of Pubali Bank Ltd.

4 Financial Markets and Institutions, Jeff Madura.

5 Different types of Voucher of Pubali Bank Ltd.

6 Several Newsletters from Pubali Bank Ltd.

7 Website of Pubali Bank Ltd, Website: www.pubalibangla.com.

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