Internship Report

On
An Analysis of General Banking Activities of Janata Bank PLC:
A Study on Mirpur Section-1 Corporate Branch

Supervised By
Roksana Aktar
Assistant Professor
Department of Accounting and Information Systeams
Jagannath University, Dhaka

Submitted By
Md. Hasan Ali
ID: B180201162
Season: 2018-2019
Department of Accounting and Information Systems
Jagannath University, Dhaka

Date of Submission: 4th March, 2024

i
 LETTER OF TRANSMITTAL
Date: 4th March, 2024

Roksana Aktar

Assistant Professor

Department of Accounting and Information Systems

Jagannath University, Dhaka

Subject: Submission of Internship Report an Analysis of General Banking Activities of

Janata Bank PLC.

Dear Sir,

With due respect, I would like to state that I am Md. Hasan Ali, ID: B180201162, 14th
Batch, Session-2018-2019, Department of Accounting and Information Systems,
Jagannath University, Dhaka. I have the pleasure to submit the internship report on An
Analysis of General Banking Activities of Janata Bank PLC: A Study on Mirpur
Section-1 Corporate Branch. This report was done in 90 days internship program. I
have concentrated my best effort to achieve the objective of the report. The practical
knowledge and experience gathered during the report preparation will immeasurably help
in my future professional life.

Hope that, this report will meet the academic requirements. I will be obliged if you kindly
approve this report considering the lacking of the report.

Yours Sincerely,

………………..

Md. Hasan Ali

ID: B180201162

Session: 2018-2019

Department of Accounting and Information Systems

Jagannath University, Dhaka

ii
 APPROVAL CERTIFICATE

This is to attest that an internship report on An Analysis of General Banking Activities of

Janata Bank PLC: A Study on Mirpur Section-1 Corporate Branch, Dhaka for
incomplete achievement of the degree of BBA major in Accounting and Information Systems
from the Jagannath University is performed by Md. Hasan Ali, ID: B180201162, 14th
Batch, Session-2018-2019, Department of Accounting and Information Systems,
Jagannath University, Dhaka under my supervision. Under my guidance and supervision
this report is being performed properly.

I have noticed that the report is prepared with personal effort. I wish the internship program
will be helpful for his professional career. I wish his satisfactory success in future.

...................................
Roksana Aktar

Assistant Professor
Department of Accounting and Information Systeams

Jagannath University, Dhaka

iii
 LETTER OF STUDENT’S DECLARATION

It is stated I, Md. Hasan Ali, ID: B180201162, 14th Batch, Session-2018-2019,

Department of Accounting and Information Systems, Jagannath University, am a regular
student. This is declared that the internship report on An Analysis of General Banking
Activities of Janata Bank Limited: A Study on Mirpur-1 Corporate Branch has been
authentically prepared by me. This report is prepared only for the internship program, not
for other purposes. I also state that the report is prepared with personal effort and without
any kind of copying from other sources.

Hope that this report is worthy enough to satisfy the partial demand of BBA program.
I believe that this internship program will also be effective in my professional life.

Sincerely,

……………………..…
Md. Hasan Ali
ID: B180201162
Session: 2018-2019
Department of Accounting and Information Systems

Jagannath University, Dhaka

iv
 ACKNOWLEDGEMENT

I want to thank the almighty Allah for my ability to complete my internship program and
prepare the internship report from the Janata Bank PLC.

First of all, I want to show my gratitude and thank to my honorable course faculty as well
as my internship supervisor Roksana Aktar, Assistant Professor, Department of
Accounting and Information Systems, Jagannath University, Dhaka for supporting me
with a lot of information during him busy schedule. The suggestions and guidelines
provided by him are proved highly important while preparing my internship report.
Without him guideline, this journey could be difficult.

Secondly, I want to show my gratitude to Md. Jasim Uddin, Assistant General Manager
(AGM), Janata Bank PLC for giving me an opportunity to work this bank. I also like to
give my thanks to all staffs of Janata Bank PLC, Mirpur Section-1, Corporate Branch
who helped me to acquire practical knowledge as well as organizational behavior. I must
mention the positive behavior of this bank which helped me tremendously.

Finally, I want to thank my family and friends who co-operate and spend time to this
journey. I am really grateful to all of them.

v
 EXECUTIVE SUMMARY

JANATA Bank PLC offers to explore the world of progressive Banking in Bangladesh.
It is a state owned commercial bank and is catering the need of the mass business people.
It was corporatized on 15th November 2007. Janata Bank was born with a new concept
of purposeful banking sub serving the growing and diversified financial needs of planned
economic development of the country. Janata Bank PLC is the second largest public
commercial bank among the others public bank in Bangladesh. The Bank has set up a
new standard in financing in the Industrial, Trade, Agriculture and Foreign exchange
business. Its various deposit & credit products have also attracted the clients-both
corporate and individuals who feel comfort in doing business with the Bank. Realizing
the growing significance of marketing in banking sector to exist successfully in today’s
competitive banking industry, Janata Bank PLC practices its marketing strategies
seriously and adopt proper elements of marketing mix. It targets the customer segments
analyzing their financial need and offer highly customized products and services to the
target customers. Janata Bank PLC offer a reach portfolio of bank products including
deposit products, loan and advance products, remittance products, cards, international
business products, and other services. Janata Bank PLC sets competitive rates of interest
and commission for various bank products which in most of the cases are almost same to
the competitors. It also attempts to reach its services to the door level of customer by
increasing its number of branches and ATM booths, and extending mobile and online
banking services. It also performs moderate level of promotional activities. It tries to
maintain strong customer relationship and acquire more customer base by proving quality
services understanding financial needs of customers and offering services accordingly.
The commitment of the bank and the people's belief in Janata Bank PLC have given the
edge over others to earn this trust about the safe keeping of their money in the right kind
of Banking channel.

vi
 TABLE OF CONTENTS

Serial No. Topic name Page No.

Letter of Transmittal ii
Student Declaration iii
Approval Certificate iv
Acknowledgement v
Executive Summary vi
Chapter- O ne: 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 3
1.5 Methodology of the study 4
1.6 Limitation of the Study 5
Chapter- T wo: Company Profile 6-21
2.1 Background 7
2.2 Corporate Information 7
2.3 Awards 8
2.4 Management 9
2.5 Organization 9
2.6 Number of Branches 10-11
2.7 Number of Employees 12-14
2.8 Vision 15
2.9 Mission 15
2.10 New Services Scheme 15
2.11 Interest Rate 16
2.12 SWOT Analysis of Janata Bank 17-18
2.13 Computer Service 18
2.14 Computerization 19
2.15 Government Intervention 20
2.16 Personal Banking 21
2.17 Training 21
2.18 Library Facilities 21

vii
CHAPTER - ONE
INTRODUCTION

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

1
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.

1.3 Statement of the Problem

Janata 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.

This study answers the following questions:

What are the necessary documents to open an account?
How different types of accounts are opened?
How different types of accounts are closed?
How DD, TT, PO are issued and cancelled?

1.4 Objectives of the Study

The objectives of the study are as follows:

1. To find out the problems (if any) relating to the general banking activities of Janata
Bank Limited, Mirpur Corporate Branch, Dhaka
2. 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

2
 (a) Primary Sources
(b) Secondary Sources

2. Data Collection Methods The primary data has been

collected in the following ways:

 Direct communication with clients

 Sharing the experience and knowledge of my colleagues.
The secondary data has been collected in the following ways:
Annual report of Janata Bank Ltd.
 Web site of Janata 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.

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 Janata 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

3
 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 Janata 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 I have prepared many reports before, I had no experience
of internship. So inexperience is one of the main constraints of the study.

4
 CHAPTER - TWO
COMPANY PROFILE

2.1 Background

Janata Bank, one of the largest commercial bank in the country, was established under
Bangladesh Bank (Nationalization) Order 1972 (Presidency Order of 1972). By taking over
branches of former United Bank Limited and Union Bank Limited, were two private banks

5
performing class banking over the country. After the birth of Bangladesh on 16th December
1971, newly formed Janata Bank for mass banking got special facilities from the government
to work as nationalized commercial bank all over the country. With the increase of
responsibility and by virtue of performance within a few years, it becomes the largest
commercial bank of the country with 872 branches including 4 overseas branches at United
Arab Emirates. It is linked with 1202 foreign correspondents all over the world.

2.2 Corporate Information

Name of the Company : Janata Bank Limited

CEO & Managing Director : Md. Abdul Jobbar

Legal Status : Public Limited Company

Registered Office : Janata bhaban 110, Motijheel Commercial

Area, Dhaka, Bangladesh

Authorized Capital : Tk. 20000 million (approx. US$ 289.85 million),

Paid up Capital : Tk. 5000.00 million,

Reserve : Tk.8202.00 million

Total asset : Tk. 282423.00 million (as on 3May, 2022)

Number of Branches : 872 br. including 4 overseas branches at U.A.E

Phone Number : 9551337, 9565384, 9567675, 9560000, 9560027-30,

95556245-49

Website : www.janatabank-bd.com

2.3 Awards

6
Recently The Bank has been recognized internationally and domestically for it's good
performance.

International Award -"World's Best Bank Award-2009 in Bangladesh

Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2009 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Strategic relationships, Customer Service, Competitive pricing and innovative
products.

International Award -"World's Best Bank Award-2008 in Bangladesh

Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2008 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Strategic relationships, Customer Service, Competitive pricing and innovative
products.

International Award -"World's Best Bank Award-2007 in Bangladesh

Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2007 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Customer Service, Product innovation and Advanced Technology.

International Award -"World's Best Bank Award-2006 in Bangladesh

Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2006 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Customer Service, Product innovation and Advanced Technology. Besides the
above mentioned awards, Janata Bank has achieved numerous awards from the beginning of
its establishment.

7
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

Janata Bank is the largest commercial bank of the country. It has 860 branches throughout the
country and abroad to serve the nation. There are 4 overseas branches at U.A.E. The Head
Office of the bank is located at Janata bhaban 110 Motijheel C/A, Dhaka. It has 15 GM, 77
DGM 192 AGM, 576 First AGM, 1037 SEO, 3085 EO and 460 AEO. Principal Offices are
headed by First AGM and each department is headed by AGM.

Figure: 2.1 Functional Hierarchies

Head Office

↓
8
 G.M. Office

↓
Area Office

↓
Regional Office

↓
Branch

2.6 Number of Branches :

SL. Name of Address SL. Name Address

Area Office
Division: Dh aka
01. Faridpur Faridpur Area 08. Khulna Janata Bank Bhaban
Office, 8, K.D.A. Commercial Area
Khan Mansion, Dist - Khulna
Mujib Road Postal Code - 9100
Faridpur Tele : 722247, 724413
Tele: 2709
02. Mymensing Mymensing Area 09. Kushtia 18/25 Raja Pramad Bhushan
Office Dev Roy Road P.O: Mohini
44, K.C.Roy Mills
Road, P.S: Kushtia
P.S. Qutuwaly Dist.: Kushtia
Dist. Mymensing Post Code : 7001
Phone -54769, Tele : 54243, 53059
55744
03. Jamalpur P.O. - Station

9
 Road Di vision: Rajshahi
P.S. Sadar
Dist. - Jamalpur
Postal Code -
2000
Tele - 3542, 3018
04. Narayangonj Post Box No-- 10. Bogra Area Office, Gohail Road
13, Bangabandhu Dist. - Bogra
road, Dist. - Postal Code -
Narayangonj Tele---6624, 3449, 5415
Tele:--
7633924,7633925
05. Tangail Pradhan Sarak 11. Dinajpur Maldahapatti
P.O - Tangail P.O. - Dinajpur
P.S - Tangail P.S. - Kotwali
Dist - Tangail Dist. -Dinajpur
Postal Code - Postal Code : 52
1900 Tele : 4507 , 5110
Tele-
54231,53732
Division: Chittagong 12. Pabna
Court Road, Pabna
Post Code : 6600
Telephone: 6366, 6368, 5172
06. Noakhali Area Office, 13. Rajshahi Area Office, Rajshahi
Noakhali Kakoli House
P.O. - Noakhali 97/85, Greater Road
P.S..- Noakhali Kazihata, Rajshahi
Sadar Post Code : 6000,
Dist - Noakhali Tel-774570, 9003491
Postal Code :
3800
Tele : 5643, 5616
Division: Kh ulna
07. Jessore Jess Tower
39 - M.K.Road
P.O. - Jessore
P.S. - Jessore Sadar
Dist. - Jessore
Postal Code - 7400
Tele: 73447, 6041
Total : 13

10
List of Branches
Local Office 1
Corporate-1 Branch 12
Corporate-2 Branch 41
Overseas Branch 04
Grade-1 Branch 204
Grade-2 Branch 209
Grade-3 Branch 294
Grade-4 Branch 107
Total Branches : 872

2.7 Number of Employees

Name & present place of posting of Managing Director, Deputy Managing Director &
General Manager of Janata Bank Limited:

SL. Name Designation Telephone No. E-Mail Address

01. Md. Abdul Jabber CEO & Managing Off -880-2- md@janatabank-bd.com
Director 223380042

02. M. Zahirul Alam Senior Consultant Off -880-2- dmdch1@janatabank-bd.com

(Deputy Managing 9552348
Director ) Res-880-2-
8252666
03. Md. Abdul Jabber Deputy Managing Off -880-2- dmdch3@janatabank-bd.com
Director 223380042

04. Tapon Kumar Director (DMD), Off -880- jbti@janatabank-bd.com

Ghosh Janata Bank 29333922
Training Institute
05. Shihabuddin Md. General Manager Off- 880-2- jbd-dhk@janatabank-bd.com
Shahjahan (Divisional Office, 9558509
Dhaka South) Res-880-2-
9359250

11
06. Md. Ayet Ali General Manager Off- 880-2- gmch2@janatabank-bd.com
(Special Assets 9556217
Management Res-880-2-
Division) 7542865
07. Dr. Hafiz Md. General Manager Off- 880-2- hasanbabu@janatabank-bd.com
Hasan Babu (IT) 7175433
(IT & MIS Res-880-2-
Division) 9571911
08. M. Zahirul Alam, General Res-880- zahirul@janatabank-bd.com
FCA Manager(Audit) 29666535
(Internal Audit
Division)
09. Bhismadev General Manager Off- 880- jbdkln@bttb.net.bd
Mondal (Khulna Division) 41721080
10. Md. Sirajul Islam General Manager Off- 880-
(Law & 29554842
Compliance
Division)
11. Md. Alamgir General Manager Off- 880-2-

Miah (Divisional Office, 9567465

Dhaka North)
12. Md. Aminul General Manager Off- 880- lo@janatabank-bd.com
Islam (Local Office) 29553106
13. Md. Mohsin General Manager Off- 880-
(Rangpur 052162277
Division)
14. Md. Abu Bakar General Manager Off- 880-
Siddique (Human 29553330
Resources
Division)
15. Md. Awlad General Manager Off- 880-
Hossain (Rajshahi 0721775725
Division)
16. Noor Muhammad General Manager Off- 880-
(Accounts & 27175218
Financial
Management
Division)

12
17. Md. Daud General Manager
Ahmed Sikder (Corporate and Off- 880-2-
Retail Customer 9554842
Division)
18. Md. Mamtaz General Manager Off- 880-
Uddin Maishan (Chittagong 31715392
Division)
19. S. M. Masud Ul General Manager
Alam ( Comilla Division
)
20. Md. Golam General Manager Off- 880-
Faruk (Barisal Division) 43164860
21. Md. Lutfor General Manager Off- 880-
Rahman (Sylhet Division) 821714938

Statement of approved post, present manpower, vacant post and additional manpower
of Janata Bank Limited as on May, 2022

Summary

Designation Approved Working Vacant Excess

Type Post Manpower Posts as Posts as
as on on on
May, 2022 May, 2022 May, 2022
1st Class 5398 4315 1083 -
2nd Class 6723 3948 2775 -
3rd Class 3629 2016 1613 -
4th Class 2071 2809 - 738
Total
17821 13088 4733
Manpower:

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2.8 Vision

To become the effective largest merchant bank in Bangladesh to support the development of
capital market and to be a leading merchant bank in South Asia.

2.9 Mission

Maintaining stable growth strategy by providing innovative and quality services to the valued
customers, attaining highest level of professionalism, performing operations with high
standard of business ethics and ensuring good corporate governance with the ultimate aim of
creating a vibrant, sustainable and strong capital market in Bangladesh.

2.10 New Services Scheme

Financing IT Sector
Financing of Industries
Ready Cash
Windows for SMEs
Loan to Travel Agencies
Loan to Diagnostic Centers
NRB Escrow Account
NRB Gift Cheque

14
2.11 Interest Rate

Janata 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 Janata Bank is given below:

Table: 2.1 Interest rate of Janata Bank

Deposit Loan and Advance
Year Savings Short Fixed Current Agricultural Industrial Consume
Account term deposit account sector sector r loan
deposit account
account
2022 5.00 % 3.50 % 7.00-8.00 00 2-8% 12.0- 14.00%
% 14.00%
Source: from deposit and advance officer of Respective branch.

2.12 SWOT Analysis of Janata 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.

15
SWOT analysis – Janata Bank
During my internship period in Janata 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:

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 Janata Bank gets government support.
 The bank undertakes need-based training program.

Threats

16
  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.

2.13 Computer Service

To ensure qualified customer service Janata Bank has started computerization corporate client
service and one stop service. 154 Major branches have already been computerized and a
massive computerization program is going on. Janata Bank Limited, first among the
Nationalized Commercial Banks in Bangladesh, has introduced One Stop Service. To

facilitate the foreign exchange service, Janata Bank has launched Janata 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.

2.14 Computerization

Janata 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 139 branches are computerized system. Besides this, ‘One Stop’ is being given in its 23
branches. Moreover, Janata 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 Janata Exchange Company Srl. 100% owned subsidiary company of
Janata Bank Limited established in 2002. JEC 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

17
 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 Janata Bank Limited branches
in Bangladesh, will be able to withdraw money within 1 to 3 days of sending
remittances.

 Recently SECI established a web based remittance software in UAE.

 Janata Bank Wage Earners Corporate Branch established electronic link with its branch
in Middle East Branch through which remittance is sent. Besides this, five electronic
links are in implementation process in Oman, Qatar and Bahrain.

 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.

2.15 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

18
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.

2.16 Personal Banking

Janata Bank Limited extends all the major personal banking facilities and services to its
customers with its skilled manpower and largest network of around 860 branches covering all
the urban and remote rural areas of Bangladesh.

Janata 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.

2.17 Training

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Janata Bank Training Institute 107/2, kakrail Dhaka-1000, training institutions in Rajshahi, and
comilla have been conducting training program covering total banking activities in order to
impart training to all categories of officers and staff of Janata Bank.

2.18 Library Facilities

With the objective of enriching knowledge and efficiency of the officers and staff of Janata
Bank, it has a central library. Library is situated in 06th floor of its Head Office Building. It
has turned into a modern library by extending its facilities. It has been enlarged with the latest
books on banking, Foreign Exchange, Computer, Management, Accounting, Agriculture,
Finance, Economics, Religion, Literature and many other disciplines.

20
 CHAPTER - THREE
GENERAL BANKING ACTIVITIES OF
JANATA BANK LIMITED, MIRPUR
CORPORATE BRANCH, DHAKA.

General Banking Activities

21
 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 everyday, general banking is also known as retail banking.

GENERAL BANKING

Account opening Remittance Cash Clearing Accounts

Section Section

3.2 Collection of Deposit

22
Deposits are life-blood of a commercial bank. Without deposits there are no businesses for the
commercial banks. Accepting deposits is one of the most important classic functions of
commercial banks. Bank deposits can be broadly classified as follows:

1. Demand Deposits and

2. Time Deposits

Bank Deposits

Time Deposits
Demand Deposits
(Current (FDR, STD, DPS
deposits, saving
etc.)
deposits etc.)

Demand deposits can be withdrawn without any prior notice, e.g. current deposits. , Mirpur
Section-1 Corporate Branch Corporate Branch accepts demand deposits through the opening
of

 Current Account and

 Savings Bank Account

23
On the other hand a deposit that is payable at a fixed date or after a period of notice is called
‘Time Deposit’. This branch accepts time deposit through
 Fixed Deposit Receipt (FDR)
 Short Term Deposit (STD)
 Janata Bank Deposit Scheme (JBDS)
 Sanchoy Pension Scheme (SPS)

While accepting these deposits, a contract is done between the bank and the customer. When
a banker opens an account in the name of a customer, there needs a contract between them.
This contract will be valid only when both parties are agreeing to enter in to the contracts. As
account opening initiates the fundamental relationship and the banker has to deal with different
kinds of persons with different legal kinds of persons with different legal status and different
personality and mentality, the officials of the branch remain very much cautious and vigilant
about the competency of the customers.

3.3 Procedures for Opening of Accounts

Before opening of a current or saving account, the customers must complete the following
formalities.

1. Application on the prescribed form

2. Furnishing photographs (two copies)
3. Introduction by an account holder
4. Putting three specimen signature in the ‘Specimen Signature Card’
5. Mandate (if necessary)
6. Voter ID card number.
7. Voter ID card of Nominee
8. Photograph of Nominee attested by account holder (1 copy)

24
After doing the above formalities, the branch provides the customer a pay-in-slip and a cheque-
book. The cheque-book may be off 10 pages, 20 pages, 50 pages or 100 pages depending on
the type of account the customer has opened. A customer has to fill up the ‘Requisition Slip’
for cheque-book. Then a new cheque-book will be filled with the account number of the
customer and name of the branch in each page of the cheque-book. Then name and account
number of the customer are registered in the ‘Cheque-book Issue Register’. The requisition
slips are maintained and recorded as vouchers. The serial number of the chequebook is also
entered in the computer for maintenance of records and to prevent any attempt of forgery.

3.4 Application Form for Current and Saving A/C

Followings are the contents of the application form for opening saving and Current A/C in
Mirpur Section-1 Corporate Branch
1. Name of the Applicant:
2. Father’s/ Husband’s Name
3. Nationality
4. Occupation
5. Date of Birth
6. Present Address
7. Permanent Address
8. Introducer’s Address
9. Information about the Nominee
10. Special Instruction for Operation of the A/C
11. Initial Deposit
12. Specimen Signature of the Applicant
13. Voter ID Number
In the case of joint A/C the following headings are additional in the form-
1. Operational Instruction of the A/C
2. Signature

25
In the case of partnership A/C, the following headings are additional in the form
1. Partners’ Signatures
2. Partners’ Names

3.5 Relevant Documents for Current and Saving A/C

Types of attached documents usually vary with the nature of the A/C being opened. Followings
are the list of documents that should be enclosed with the ‘A/C Opening Form’ for opening
account for different kinds of A/C openers:

In case of Club/Society
a. Up-to-date list of office bearers
b. Certified copy of resolution for opening and operation of A/C
c. Certified copy of by laws and regulations/constitution
d. Copy of government approval (if registered)
In case of Co-operative Society
a. Copy of by laws duly certified by the co-operative officer
b. Up-to-date list of office bearers
c. Resolution of the executive committee as regards of the A/C
d. Certified copy of certificate of registration issued by registrar, co-operative society

In case of Non-government College/School/Madrasha/Muktab

a. Up-to-date list of the members of the governing body/managing committee
b. Copy of resolution of the governing body/managing committee authorizing opening
and operation of the A/C duly certified by gazetted officer

In case of Trustee Board

26
 a. Prior approval of head office of the bank
b. Certified copy of deed of trust, up-to-date list of members of the trustee board and
certified copy of the resolution of trustee board to open and operate the A/C

In case of Minor’s A/C

a. Putting the word ‘Minor’ after the title of the A/C
b. Recording special instruction of operation for the A/C
c. The A/C opening form is to be filled in and signed by either of the parents or the legal
guardian appointed by the court of law and not by the minor

In case of Limited Company

a. Certified true copy of the memorandum and articles of association of the company
b. Certificate of incorporation of the company for inspection and return with a duly
certified photocopy for bank’s records

c. Certificate from registrar of joint stock companies that the company is entitled to
commence business (in case of public limited company for inspection and return) along
with a duly certified photocopy for bank’s records.

d. Latest copy of balance sheet

e. Extract of the resolution passed in the general meeting of the company for opening of
the A/C and authorization for its operation duly certified by the Chairman/Managing

Director of the company

f. List of Directors with addresses
g. Authorized signature

General conditions or rules in respect of operating Current/Saving A/C in Mirpur

Section-1 Corporate Branch are as follows

27
 a. A minimum balance of tk500 and tk1000 must be maintained in the saving and Current
A/C respectively.

b. A suitable instruction by an introducer acceptable to the branch is required.

c. Recent photographs of the A/C openers duly attested by the introducer must be
produced

d. Withdrawal of deposit can be made two times in a week in case of saving A/C
e. For Saving A/C, an application must be submitted to the branch authority if withdrawal
is tk50, 000 or more but customer rarely follow this rule.

f. Interest rate for Saving bank A/C is 5% per year

3.6 Fixed Deposit Receipt (FDR)

Fixed deposits are deposits in which an amount of cash is deposited in bank for a fixed period
specified in advance. Hence these deposits are time deposits or time liabilities. Normally, the
money on a fixed deposit is not repayable before the expiry of the fixed period. At the time of
opening the deposit account, the banker issues a receipt acknowledging the receipt of money
on deposit account. It is popularly known as FDR. Necessary documents for opening a FDR
A/C in Mirpur Section-1 Corporate Branch are as follows-
 FDR form
 FDR card
 Photo of the Nominees attested by the A/C holder

The ‘Fixed Deposit A/C Opening Form’ contains the following headings-
Amount in figures
 Period
 Rate of interest
 Beneficiaries name and address
 Special instruction in case of joint A/C
 Information about nominees
 Address of the applicants
 Specimen signatures
 FDR number

After opening a FDR A/C, it is usually recorded in the ‘FDR Register’. In the case of Fixed
Deposit Account, the bank needs not hold a cash reserve to repay money to the customers. The
28
payment will be made after the completion of a certain period. Hence, Janata Bank Ltd offers
a high interest rate in Fixed Deposit Account. The interest rates followed by Janata Bank Ltd
for Fixed Deposit Account are-

Period Interest rates

For 3 months to > 6 months @7.00%
For 6 months to > 12 months @7.50%
For 12 months to > 24 months @7.75%
For 24 months to > 36 months @8.00%

Normally a customer is not allowed to withdraw money before the expiry of the fixed period
in case of Fixed Deposit Account. However, Janata Bank Ltd. allows its customers to withdraw
fixed deposit amount at any time after giving a short notice. In this case the customers will get
interest rate by the following ways-
 If withdrawal happens before 3 months, there will be no interest.
 If withdrawal happens before 6 months, 3 months’ interest rate.
 If withdrawal happens before 1 year, 6 months’ interest rate.
 If withdrawal happens before 2 years, 1 years’ interest rate.
 If withdrawal happens before 3 years, 2 years’ interest rate.
In case of ‘Before Maturity Encashment’ interest rate is calculated for the days from the date
of opening the FDR account. The FDR becomes renewed automatically in Janata Bank Ltd. if
the customer does not withdraw it within 7 days of maturity. In case of encashment of FDR
(say for tk. x) in maturity, following accounting treatments are applied-

Interest on FDR A/C ---------------------------Cr (say tk p)

Excise Duty on FDR----------------------------Dr (say tk q)
10% income tax on interest--------------------Dr (say tk r)
FDR A/C-----------------------------------------Dr (tk {x+p-q-r})
Cash A/C-----------------------------------------Cr (tk {x+p-q-r})

If the customer wants to draw the interest only, then the following entries are given-

Interest on FDR A/C----------------------------Dr Cash

A/C-----------------------------------------Cr

Some other important factors in case of FDR A/C are as follows-

 FDR is not negotiable instrument.

29
  The legal position of a banker in respect of a fixed deposit is that of a debtor who is
bound to repay the money only after the expiry of the fixed period.
 Cheques are not permitted for Fixed Deposit Account.
 Fixed Deposit Accounts are subject to Income Tax Act.

3.7 Short Term Deposit (STD)

In Short Term Deposit Account, the deposit should be kept for at least seven days to get
interest. The interest offered by for STD is less than that of savings deposit. For this type of
account, frequent withdrawal is discouraged and it requires prior notice. STD is also called
‘Seven Days Notice Current A/C’.

STD Interest Rate

Up to 10 core 3.50%
Above 10 core 3.60%

In Mirpur Section-1 Corporate Branch, customers are given an instruction that their current
accounts will be debited whenever the deposited amount crosses a certain limit and this amount
will be transferred to the STD account. The branch follows this instruction by giving the
following entries-

Customer’s Current A/C--------------------Dr

Customer’s STD A/C-----------------------Cr

3.8 Janata Bank Deposit Scheme (JBDS)

According to this scheme, a person of minimum 18 years old can open any ‘Janat Bank Deposit
Scheme A/C’ by depositing at least tk.500 or maximum tk.20000 in each month for 10 years
term. After maturity of the term, the depositor can withdraw the total deposited amount with
interest or can withdraw by monthly installment. The depositor has to deposit the specified
amount for him/her by the 11th day of each month either in cash or cheque. In respect of JBDS
account, the depositor can select more than one nominee for claiming the deposited money
after his/her death. No joint account is allowed in this scheme.

The main characteristics of JBDS are as follows-

30
  A system of secured income has been confirmed by JBDS for the depositor in their old
age who invested money from their early incomes.
 A scope of proper and exact utilization of money is possible by JBDS.
 The total deposited amount with interest will be given to the investors and this is certain.
 The JBDS gives the investors a chance of bearing the educational or marital expenses
of their adult sons or daughters.
 The total invested money in JBDS is absolutely income tax free. The earning from
JBDS is not considered while charging the annual income tax.
 In JBDS, a 8.5% compounding interest rate is applied and it is usually calculated on
yearly basis.
 Account holder can take lone on JBDS and Interest rate for loan id 2% more than JBDS
rate (8.5% + 2% = 10.5%)

A depositor can withdraw the total amount of money (Principal + Interest) at the expiry of the
certain period.
For JBDS, the payment systems in case of maturity of an account are as follows:

Amount of Period Payment in case of Total Payment (tk)

monthly (years) maturity of the period
installment (tk)
500 10 60000 94609
1000 10 120000 188218
2000 10 240000 375435
5000 10 600000 937088
10000 10 1200000 1873176
20000 10 2400000 3745352
Source: Deposit Department, Mirpur Section-1 Corporate Branch
3.9 Sonchoy Pension Scheme (SPS)

Janata Bank Ltd. initiated this ‘Janata Bank Ltd. Sonchoy Pension Scheme’ in order to improve
the socio-economic conditions of the professionals of all levels. This system is based on a
monthly basis. The main characteristics of SPS are as follows- Duration of the account in
this scheme is either five or ten years.

 Amounts of installments are tk.100, tk.200, tk.300, tk.400 tk500, or tk.1000

 Any person of minimum 18 years old can open a SDPS account in a specific form as
provided by Janata Bank Ltd. in any branch. No lunatic is allowed to open this kind of
account.

31
  A depositor should deposit his/her monthly installment by the 01th day of each month.
If the 10th day is a public holiday, then deposit in next working day is allowed. The
installment can be deposited either by cash or by cheque.

 The interest rates are, for five years duration 8.5% compounding interest rate and for
ten years duration 9% compounding interest rate. In both cases interest is calculated on
yearly basis.

 The depositor can have one or more nominees. In case of more than one nominee, the
depositor can determine the portion of amount of money for each nominee.

 A customer can stop operation of his/her SPS A/C at any time according to his or her
own discretion. In this respect, the bank charges tk.25 to the customer. If she/he stops
the account within one year, no interest will be given. If he stops the account after one
year but before three years, 5% simple interest will be given. If he cancels his account
after three years but before five years, 7% simple interest will be given. If he withdraws
his account after five years, then 8.5% simple interest will be given.

3.10 Transfer of Account to another Branch

The account holder requests to transfer his accounts by giving the following instructions-
Reasons for transfer the account
 Address of the branch at which customer wants to transfer the account
 The unutilized cheque book will be returned to the transferring branch before transfer
of account
After verification, the approval of the manager for transferring the account is obtained and then
the specimen of the forwarding letter of transferee branch will be sent. After the application is
received duly approved from the manager, the branch transfer the account based on the
following entries-

Customer’s Account-----------------------------Dr
Transferee Branch Account---------------------Cr
Service charge (income) ------------------------Cr

3.11 Closing of an Account

32
The following circumstances are usually considered in case of closing an account or justifying
the stoppage of the operation of an account-
 Notice given by the customer himself or if the customer is desirous to close the account
 Death of the customer
 Customer’s insanity and insolvency
 If the branch finds that the account is inoperative for a long period
 If Garnishee Order is issued by the Court of Law on the bank branch
Before the account is closed the manager will approve the application and closing charge being
incidental charge which should be debited to the account. To close the account, the cheque
book is to be returned to the branch. Accounting entries will be-

Customer’s Account---------------------------Dr
Account Closing Charge (income) ----------Cr

3.12 Bank Remittance

Remittances of funds are one of the most important aspects of the commercial banks in
rendering services to its customers. Among various services rendered by the commercial bank
to its customers, remittance facilities are very well known and popular. The word ‘Remittance’
means sending of money from one place to another place through post or telegraph. Banks
extend this facility to its customers by means of receiving money from one branch of the bank
and making agreement for payment to another branch within the country.

In general there are two types of bank remittance-

1. Inward remittances and
2. Outward remittances.
The remittance facilities of a commercial bank enable its customers to avoid risk arising out of
theft or loss in carrying cash money from one place to another or making payment to someone

33
in another place. Banks take the risk and ensure payment to the beneficiary by charging the
customer.

Chart for Bank Remittances Flow

Remitter Issuing Paying Payee

Branch Branch

Considering the urgency and nature of transaction, the modes of bank remittances may be
categorized as follows-

 Demand Draft (DD)

 Mail Transfer (MT)
 Telegraphic Transfer (TT)

The following register books are maintained for remittance purpose-

 DD, MT, TT Issue Register
 DD, MT, Advice Received Register
 DD, MT, TT Payment Register
 DD Ex-Advice Payment Register

3.13 Demand Draft (DD)

Demand Draft (DD) is an instruction payable on demand. It is a negotiable instrument

issued by the branch of a bank containing an order to another branch of the same bank to
pay fixed sum money to a certain person or order of demand. This instrument can be
purchased by a customer from a particular bank for himself and can be handed over to the
purchaser for delivery to the beneficiary. The payee or beneficiary will claim the amount
of money in the instrument by producing the same to the concerned paying branch. Demand

34
draft may be paid in cash to the payee on proper identification or the amount may be
credited to his account (in case of A/C holder of the bank). Banks issue draft for nominal
commission. The commission depends upon the amount to be transmitted. The purchaser
of the DD needs not to be a customer or account holder of the bank. Flow chart for a DD

Application Issuing Branch gives Purchaser

submitted branch DD to sends DD
to branch prepares DD purchaser to payee

Paying Payee
branch pays presents DD
the amount to branch

3.13.1 Issuing of Demand Draft

While issuing a DD, an official must be confirmed about the existence of the branch where
the DD is to be issued by the applicant or purchaser. Application on bank’s prescribed form
(F-117) for DD is duly filled and signed by the applicant. Thereafter, the applicant will be
asked to deposit the amount mentioned in the DD and exchange/commission computed
correctly at the prescribe rate. On receipt of cash, a voucher is passed and scrolled by at
least two officers. Then the DD is issued and recorded in the ‘DD Issue Register’ filling
the appropriate columns. The DD application is treated as credit voucher of SBG A/C by
showing credit entry against the paying branch. For any of DD issued, a relative DD Advice
is sent to paying branch where the Advice is converted into Voucher, Mirpur Section-1
Corporate Branch charges tk.1.50 for per tk.1000 as its commission for DD. The
minimum commission is tk.15. The procedure of issuing a DD against cash could be shown
by the flow chart in the following ways-

35
 Accept application/pay-in-slip signed by the purchaser

Calculate and take exchange charges

Take cash from the purchaser

Sign and hand over the DD

Send advice of drawing to paying branch

Flow Chart for DD issue against cash

Accounting entries will be-

Customers Account------------------Dr SBG Account-------------------------

Cr
Income Account (Commission) ---Cr

3.13.2 Procedure of Demand Draft Payment

After receiving the DD advices from different branches, the paying bank will verify the
genuineness of the advices by verifying test numbers and signatures. Beside this, payment of
drafts can be made without the advice of the issuing bank and at that time payment is called
‘Acceptance Payment’.

Total amount of advice is debited to SBG A/C and credited to draft payable A/C. That is-
SBG A/C------------------------Dr
Draft payable A/C -------------Cr

On production of DD by the beneficiary, payment will be made by the following ways-

Draft payable A/C---------------Dr
SBG A/C-------------------------Cr
36
If the payment is to be made before receiving of the DD advice, DD payment is recorded in
the Ex-advice payment register by debiting the Draft Payable Ex-advice A/C (DD paid without
advice). On receiving of the advice, it will be entered into the DD, MT Advice Receive Register
and the amount will be credited to Draft Payable A/C. Before making payment of the DD, the
paying branch will ascertain the genuineness of its issuance as well as genuineness of payee.
The following flow chart depicts the payment procedures of DD-

3.13.3 Cancellation of Demand Draft

In some cases, the purchaser of the bank draft may ask the issuing branch to return the amount
of DD stating its non-requirement. In these cases, the issuing branch will obtain a written
application from the purchaser whose signature must be tallied with the signature obtained
earlier. An amount of tk.25 be recovered from the purchaser as ‘Cancellation Charge’ and will
be credited to the Commission A/C. The purchaser will acknowledge receipt of the proceeds
writing the words ‘Received Payment by Cancellation’ and will sign on revenue stamp affixed
on the draft. In this case, payment is made by debiting the SBG A/C and a relative cancellation
advice is sent to the paying branch.

3.13.4 Issuing of Duplicate Demand Draft

If DD is lost, the issuing branch may issue a duplicate DD. But before issuing a duplicate
DD, the branch issued to observe the followings-
 Verify purchaser’s signature on the DD application slip
 Take indemnity bond from purchaser
 Clearance from paying branch whether the DD is already paid or not to be obtained
 DD cancellation advice to be sent to the paying branch
 Lastly the duplicate DD is issued and the word ‘DUPLICATE’ in red ink is stamped in
the front side of the DD block.

37
3.14 Mail Transfer (MT)

The facility of sending money by mail is available to customers who have accounts with
the bank. The remitter deposits the amount that will be transferred from the remitting
branch with small commission. An advice is issued by the branch to another branch for
crediting the specified amount to the account of the payee maintained with the bank. It is a
non-negotiable instrument and generally is not handed over to the customer rather sent
through post office to the concerned branch. Remittance of money by Mail Transfer is
relatively cheaper, quite safer and more convenient. Mail Transfer is effective not only
within the country but also for international remittances. For local MT (say within the area
of Dhaka) special ‘MT Register Book’ is maintained as in like DD. MT is normally issued
from branch to branch of the same bank. Normally the mail charge is tk.15 for any amount.
From tk.1 to tk.20000 commission is tk.20 and for above tk.1 added for every tk.1000.

The payment procedures for MT are as follows-

1. MT is received directly from the issuing branch by post and the payee does not
present it for payment.

2. The paying branch checks the name and account number of the payee in MT to
determine whether it agrees with the name and account number maintained in the
paying branch.

3. The paying branch verifies the signatures of the authorized officials of the issuing
branch.

4. MT is entered in the ‘DD, MT, TT Payment Register’.

5. No commission is deducted.

38
 6. If everything related to MT is correct then the passing officer will pass the MT by
putting signature on it and the voucher is credited to the respective beneficiary’s
account.

3.15 Telegraphic Transfer (TT)

Telegraphic Transfer (TT) is another widely used mode for remittances of funds. TT is quicker
than DD or MT. If an applicant wants to remit the amount urgently to the payee in another city
or district he may request the issuing branch to send it by TT. For TT a branch sends a telegram
instead of airmail. The branch usually recovers from the telegram charges in addition to the
usual service charges. A TT could be express or ordinary and it is always sent in coded-form.
Corporate branch follows the following procedures in case of TT issuing-

1. The customer deposits money in the branch.

2. The customer obtains a cash memo containing TT serial number.
3. TT serial number, notifying party name are mentioned in the telex massage.
4. The telex department confirms transmission of the telex. Accounting entries
for TT

Cash/Client’s account----------------------Dr
SBG account--------------------------------Cr
Income account (commission) -----------Cr

Procedures for the incoming TT

After receiving the telex, it is decoded at first. Then the TT serial number, test number are
verified. A credit voucher in favor of the beneficiary’s account is prepared and passed.

For TT telephone charge is tk.25 and tk.1-20000 commission is tk.20 and above it tk.1 added
as commission for each tk.1000. 15% vat taken on commission.

39
3.16 Payment Order (PO)

Payment Order (PO) is an instrument that contains an order for payment to the payee only in
the case of local payment whether on behalf of the bank or its constituents. In the beginning
stage, PO was issued only to affect local payments of bank’s own obligations but at present it
is also issued to the customers. They purchase PO to deposit money. PO is in the form of
receipt which is signed by the two officials. The money of PO is deposited to the bank’s own
account named ‘Payment Order A/C’. Payment of this instrument is made from the issuing
branch. PO is not transferable; therefore it can only be paid to-

 The payee on identification

 The payee’s banker who could certify that amount and credit that amount to the payee’s
A/C
 A person holding the letter of authority from the payee whose signature must be
authenticated by the payee.
For below tk.1000 the commission is tk.20 and for tk.1001 to tk.100,000 the commission
charge is tk.30 and for above tk.100,001 it will be tk.50.

Remittance Commission (tk) VAT (tk)

DD 20 to 100 15%
MT 20 to 100 15%
TT 20 to 100 15%

Accounting entries: PO by cash

Cash A/C-----------------------------Dr
Bill Payable--------------------------Cr
PO commission----------------------Cr

Accounting entries: PO by cheque

Cheque A/C--------------------------Dr
Bill Payable--------------------------Cr PO Commission-
--------------------Cr

40
3.17 Operation of Cheque

A cheque, signed by the drawer is an unconditional order in writing and drawn on a specified
bank. Bank will pay a certain sum of money to the cheque bearer. A cheque involves three
parties-

1. The drawer
2. The drawee (the bank) and
3. The payee (to whom the cheque is to be paid)
The following procedures are usually done for passing a cheque-
 A clerk scrutinizes the cheque for the date, the amount and the signature and then he
gives the drawer of the cheque a token number and he also writes that number at the
back side of the cheque. He then passes the cheque to the ledger-keeper after giving a
seal.

 The ledger-keeper again scrutinizes the cheque for his satisfaction. He then debits the
amount in the ledger book and passes the cheque to the authorized officer. The
authorized officer verifies the signature of the account holder very carefully to protect
any kind of fraudulent activities and passes it to the cash officer for payment.

 The drawer of the cheque presents the token in the ‘Cash Payment Counter’ and the
cashier makes payment after verifying the token. The cashier may want another
signature to compare with the previous one.

3.18 Stopped Cheque

In case of stopped cheque the following formalities are done-

 The accountant keeps the ‘Stopped Cheque Register’ and reserves the pertinent
documents.
 After receiving a letter or telegram for stopping the payment of cheque, the time of its
receipt is noted down by the accountant.
 The ledger-keeper and the officials are also informed immediately.
 Lastly the cheque is stopped.

41
3.19 Collection of Cheque

In Mirpur Section-1 Corporate Branch cheques of its customers are received for
collection. In case of received cheque, the following points are followed carefully-

 The cheque should not carry a date older than the receiving date for more than six
months. In that case the cheque will be a ‘stale cheque’ and it will not be allowed for
collection. Again the date of cheque should not be more than one day forward than the
receiving date.

 The amount in figures and words in both sides of the pay-in-slip should be same and
they will also be same in the cheque.

 The name mentioned in cheque should be same in both sides of the pay-in-slip and in
the cheque.

 The cheque must be crossed.

For the collection of cheques the branch can be divided in to three sections-
1. Short Credit (SC)

2. Local Short Credit (LSC)

3. Clearing.

3.19.1 Clearing

Janata Bank Ltd is a schedule bank. According to the Article 37(2) of the Bangladesh Bank
Order, 1972, the banks that are member of the Clearing House are called as ‘Schedule Banks’.
The schedule banks clear the cheques drawn upon one another through the clearing house. This
is an arrangement by the central bank where the representatives of the banks gather to clear the

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cheques everyday. The place where the banks meet and settle their dues is called the clearing
house. The clearing house sits for two times in a working day.

3.20 Clean Cash Book

The clean cash book is the abstract of each day’s transactions classified under the General
Ledger heading. Clean Cash Book is written to-
 Test the arithmetical accuracy of one day’s transaction.
 Consolidate one day’s transaction.
 Help position in the General Ledger.
 Test the closing cash balance of the branch.
The procedures for writing the clean cash book are as follows-
1. At first the writer sees that the books are checked and authenticated by the authorized
officials properly.

2. The clean cash book should be checked daily from the subsidiary register by an
authorized supervising official.

3. Each morning the manager will scrutinize the whole of the previous day’s vouchers.
4. All vouchers should be collected by the clean cash book writer and handed over to a
supervising official.

3.21 The General Ledger

After successful completion of the entry in clean cash book, all the balances of the account
heads are transferred to the General Ledger which is the final and the most crucial part of
accounting system of the branch. The debit side of the clean cash book is transferred to the
credit side in the general ledger book and the credit side of the clean cash book is transferred

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to the debit side in the general ledger. A weekly/monthly statement is prepared in F-12 form
by the branch and is sent to the Head Office. The figures of F-12 form are collected from

General Ledger. The accounts in the branch’s General Ledger are as follows-
 Janata Bank Ltd General Account (SBG A/C)
 Fixed Deposit Account
 Short Term Deposit Account
 Saving Bank Account
 Call deposit Account
 Current Account
 Pay Order Account
 Drafts Payable Account
 Demand Loan Account
 Cash Credit Account
 Foreign Bill Purchase & Negotiable Account
 Bills for Collection Account
 Forced Loan Against Back to Back Loan Account
 Advance Against Merchandise Account
 Discount Account
 Interest Account
 Exchange Account
 Commission Account
 Charges Account
 Profit & Loss Account
 Stationary Account

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 CHAPTER - FOUR
FINDINGS, RECOMMENDATIONS AND
CONCLUSION

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4.1 Findings of the Study
During my report preparation I have gone through several departments of General Banking and
detected some problems from my own practical experience as follows:

1. The newly prescribed 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 to account opening purpose, it is very difficult for the relevant officer to provide
satisfied service to the client.

2. According to some clients, introducer is one of the problems to open an account. If a

person who is new in the city wants to open account, it is a problem for him/her to
arrange an introducer of SB or CD account holder.

3. Lengthy process of issuing cheque book, Pay order, Bank draft cause. Job
responsibilities are not specified to each and every employee of this division.

4. Insufficient modern sophisticated technology change such as use of new software there
are few staff who are lacking in computer knowledge and are not efficient chough to
finish every task immediately. So, before utilizing new technology proper training
should be arranged.

5. Inadequate skilled manpower in janata bank Ltd, because there is lack of proper training
arrangement of employees in the general banking section. For example, most of the
new recruited employees learn their job tasks by observing their senior employee.

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4.2 Recommendations
In the light of findings, the recommendations are as follows:

1. The form should be precise with the quality information to the points of the client rather
unnecessary or vague information. This can create the opportunity to serve more people
in short time.

2. If the interested clients have proper documentation in favor of his/her identity then there
should be probation for avoiding introducer.

3. Bank should formulate simple process for issuing cheque book, Pay order, Bank draft.

4. To hire and install sufficient modern sophisticated technology because of present

market demand of the customer and the educated customers now want technology based
banking but customs are confused about services.

5. To recruit sufficient skilled manpower because the bank employees should

communicate properly with customers about their deposit and other schemes.

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Conclusion
As the largest nationalized commercial bank Janata Bank Ltd is operating every corner of the
country providing the banking services to different classes of customers. The area where there
is no branch of any bank of the modern competitive banking sector, there one can find a branch
of Janata Bank.

Banks play an active role for the development of the country. Janata 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 Janata Bank will help me a lot in my future
banking profession.

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Bibliography

 Dotchin, J.A. & Oakland, J.S. (1994). Total Quality Management in Services Part 2:
Service Quality. International Journal of Quality & Reliability Management, 11(3).

 Feigebaum, A.V. (1986) Total Quality Control, 3rd edition. McGraw-Hill, New York.

 Malhotra, N.K. (2003). Marketing Research, (3rd edition), Prentice-Hall.

 Michael J. Fox, (1993): Quality Assurance Management, (1st edition) CHAPMAN &
HALL.

 Profile of Janata Bank Ltd.

 Annual Report of Janata Bank Limited, 2012.

 Articles of Janata Bank Ltd.

 Commercial Bank Management, 3th Edition, Benton E. Gup, James W. Kolari.

 Financial Markets and Institutions, Jeff Madura.

 Different types of Voucher of Janata Bank Ltd.

 Half Yearly Report of Janata Bank Ltd.

 Several Booklets from Janata Bank Ltd.

 Several Newsletters from Janata Bank Ltd.

 Website of Janata Bank Ltd, Website: www. janatabankbd.com.

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