This is to confirm that the internship report on “OVERALL GENERAL BANKING ACTIVITIES OF JAMUNA BANK LTD.I was allowed to collect necessary data for my internship report on Jamuna Bank Limited, Rajshahi Branch, Rajshahi.
Prelude 15
Origin of the Report. 15
Review of the Literature. 15
Objectives of the Study 16
Methodology of the Study: 16
Scope of the Study 16
Limitation of the Study 17
Jamuna Bank Limited emerged as a new generation commercial bank to provide efficient banking services and contribute to the socio-economic development of the country. A Bank of the 21st Century” has been precisely the essence of the legend of the Bank's success. The Bank's operations are automated to ensure fast and efficient service to the customers.
TT is the fastest way to transfer money between two branches of the same bank. Withdrawal of money is allowed only through a checkbook sheet issued by the bank. The customer's signature on cash withdrawal checks must match the sample signature on file with the bank.
In such cases, the loan amount given by a branch is 80% of the above instrument. To facilitate the foreign trade transactions of the SME customers, Jamuna Bank offers a product named 'JamunaBonik'. Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of Bangladesh) and Bank's operational procedures.
Nationality certificate should be submitted along with attested passport size photographs of directors/partners/proprietor. To improve the customer base of Jamuna Bank Limited Rajshahi branch, the following steps can be taken.
Corporate Value of the Bank 18
Structure of the Organization 19
The Bank officials were very reluctant to talk about the loan functions, especially their performance in disbursement and collection of loans and advances. The balance will be payable to him/her/them or the survivor of the joint account. This instrument is also accepted as primary security or collateral security against any advance or loan subject of the Bank.
It is the right to hold the borrower's property or goods as security until the debt is settled. In this case, the banker can only retain possession of the goods; he may sell them after giving reasonable notice to the borrower. In case the mortgagor fails to repay the loan, the bank has the right to recover the debt from the sale of the mortgaged property.
After submitting the application form, it usually takes 1 to 2 weeks to deliver the card to the applicant. Draft layout plan of the proposed building and the estimated narrowing costs are obtained. If the conditions of the credit do not require specific documents to be presented, it is called 'Clean credit'.
Most banks are completely dependent on their head office to promote their services to current and potential customers. Most of the customers know that “Consumer Credit Scheme” and C.C camera facilities, “Online banking services” are available in the JBL.
Special Features of JBL Rajshahi Branch 20
Organizational Chart of JBL Rajshahi Branch 20
Savings Account 25
The savings account allows a person to earn interest income on his/her deposit while the account can be used for transaction purposes. No interest is payable (for the relevant month) if the balance falls below BDT 5,000.00 on any day of the month. No interest is payable (for the month in question) if a customer debits his/her account more than twice a week.
No interest is payable (for the relative month) if a customer withdraws more than 25% of his/her balance at one time (per single cheque). Any person of legal age and sound mind can open an account alone or jointly. The Bank reserves the absolute right to modify/amend these rules of Savings Bank Account as well as interest rate from time to time.
The Bank reserves the right to close any account if the operation turns out to be unsatisfactory or on other genuine grounds without assigning any reason.
Current Account 26
Fixed Deposit Receipt (FDR) 27
If early encashment of FDR is desired, no interest will be paid to the depositor. If early encashment of FDR is desired before the expiry of 3 months, no interest will be paid to the depositor. If early encashment of FDR is desired after expiry of 3 months but before maturity, interest will be paid at Savings Bank rate.
If early redemption of the FDR is desired after the end of 3 months, but before the end of 6 months, interest is paid with savings bank interest. If early redemption of FDR is desired after completion of 6 months but before completion of 1 year, interest is payable at the applicable rate for 3 months prevailing on the date of issue or redemption, whichever is lower. Desired for early redemption of FDR after 1 year but before the expiry of 2 years, interest is payable at the prevailing rate for 6 months prevailing on the date of issue or redemption, whichever is lower.
Desired for early redemption of FDR after 2 years but before the expiry of 3 years, interest is payable at the rate applicable for 1 year prevailing on the date of issue or redemption.
Double Growth Deposit Scheme (DGDS) 28
While premature deposit is allowed after keeping deposit for more than 1 year and paying interest thereon, necessary adjustment should be properly made in respect of interest credited/paid to the FDR account earlier. In case of SOD against FDR, interest will be charged as usual while interest for premature payment of related FDR will be paid as per the procedure mentioned above.
Family Maintenance Deposit Scheme (FMDS) / Monthly
Remittance 29
Demand Draft (DD 29
Security Deposit Receipt (SDR) 30
Pay Order (PO) 30
Online transaction 30
Advice 30
Bills 30
Loan And Advance is one of the most important sections to achieve and fulfill the objective of making profits, economic development and strengthening its position. Advances: It is a fundamental precept of banking that advances are given to customers. I trust his promise to repay instead of the bankers' collateral. Loan: When an advance is made on a lump sum which is repayable in fixed monthly installments or in a lump sum and subsequent debts are normally allowed in the form of interest, charges etc., it is called a loan.
Classifications of Loans & Advances 31
Continuous loan 31
Term loan 32
Personal Loan 32
SME Loan 32
Selection of the borrower: A careful and systematic study of the affairs of the prospective borrower is necessary for the right selection of lender. But to get the loans and get advance, the investors have to follow certain terms and conditions which come under the policy and practice of the bank instruction booklet. Most bank loans to individuals result from a direct request from a customer who approaches a member of the bank's staff and asks to fill out a loan application.
The customer is required to deposit with the application the cost of the project research and also distribute the equity at the following rate either by check or by payment order or by payment order in favor of Jamuna Bank Ltd. Certificates from the surveyor for determining the price of project land/price of adjoining land sold in the last three years must be submitted. The RM must own the customer relationship and be held responsible for ensuring the accuracy of the entire credit application submitted for approval.
It is a credit contract whereby the buyer's bank, on behalf of the buyer, is obliged to pay an agreed amount to the seller under certain agreed conditions. Since the establishment of the branch, it had done its best to speed up the overall banking business in Rajshahi. In order to increase the faith of the depositors and the public, JBL should perform its activities more efficiently so that the bank can be the market leader.
Loan facilities in JBL 33
Loan disbursement procedure 35
The bank lends money to its depositors; therefore it is required to return to the ordinary course of business. Principles of lending: The banker should consider the principles of lending, these are – Safety, Security, Liquidity, Profitability, Purpose, National Interest, Diversity. For these feasibility tests, the following should be taken into account - ➢Location, land and building, product, raw material.
Lien: This is the right to retain the borrower's property or goods as security until the debt is settled. In this case, ownership of the goods remains with the banker, and possession of the goods with the loan. Mortgage: Only real estate is mortgaged. The entire ownership of the property is not transferred, only the interest is transferred.
Direct/Indirect: The direct security is deposited by the customer himself and the indirect security is deposited by third parties.
Banks Financing Policy 36
Debit Card 37
Credit Card 37
Classification of credit card 37
If the customer appears to lack sincerity in acknowledging the need to comply with the terms of a loan, this should be recorded as a strong factor weighing against approval of the loan application. Full details must be provided for each item, supported by documentation where necessary, to avoid further referral/delay/rejection of the application. The memorandum and articles of association together with the certificate of registration/foundation of the company's commencement of business must be submitted duly attested by an aging director of the company.
In case the project is located in any BSCIC industrial area, a copy of the lease agreement is obtained, the latter with BSCIC consent details. Credit applications must contain summaries of the results of the RM risk assessment and contain at least the following details: _ amount and type of loan proposed. The buyer and seller enter into an agreement for the purchase and sale of goods/services and the buyer instructs his bank to issue an L/C in favor of the seller.
From the very beginning, the industry has been able to build a strong customer base, making it possible to achieve sustainable growth in terms of revenue generation over the past four years. One of the functions of commercial banks is to create loanable funds for households (individuals and families), local unit government and agricultural, commercial and industrial activities of the country. From the opinions of customers, we can say that most customers are satisfied with the office relationship with banker customers, better services and the attitude and location of the employees.
