Internship Report On Foreign Exchange Operation of Jamuna Bank Limited
Internship Report On Foreign Exchange Operation of Jamuna Bank Limited
On
Foreign Exchange Operations of Jamuna Bank
Report
3
On
Prepared To:
A. K. M. Moniruzzaman Ph. D
Professor
Department of Management Studies
5
Prepared By:
Name
ID
Sec
Session
Letter of Transmittal
To
A. K. M. Moniruzzaman Ph. D
Professor
Department of Management studies
7
It was stimulating opportunity and a valuable experience for me to the real business
world. I am grateful for providing me such an opportunity to gather practical experience
of working in a private commercial bank, like Jamuna Bank Limited.
Hope that you would be very pleased to accept my report and oblige me.
Sincerely Yours
Md. Zakir Hossain
ID 05122353
Department of Management Studies
9
ACKNOWLEDGEMENT
10
At first I want to express my gratitude to almighty Allah for giving me the strength, ability and
opportunity to complete the report within the schedule time successfully.
My sincere gratitude goes to my respected internship supervisor, Professor A. K. M.
Moniruzzaman Ph. D, report would not have been possible and such endeavor really deserves
compliment. Thanks to him for giving me the opportunity to prepare this report which I think
will enhance my skill and help the practical application of my knowledge in future.
I received cordial cooperation from the officers and members of staffs of jamuna Bank Ltd,
Dilkusha / Principal branch, Dhaka and the teachers and staff of Jagannath University of Dhaka.
I want to express my cordial gratitude to them for their cooperation without which it would not
have been possible to complete the report.
11
I am reallythankful to Mr. Kamal Uddin, SAVP and operation in charge, Jamuna Bank Dilkusha
Branch for giving me the excellent opportunity to do my practical coordination in this branch. I
would also like to thank to Mr. Shahed Morshed Chowdhury, JAVP, Mr. A S.M Masouk, SEO,
Mr. ABM Mazharul Hoque Sikder, EO of Import Division, and Ms. Sapna Habib Srabanti,
Officer, Customer Care for giving me the excellent direction with their proper compassionate
with me.
12
Executive Summary
13
A few years back also, banks are nothing but a medium whose only task is to collect money from
people who have excess of it and give it to those people who need it.But very recently banks
have diversified their operations into various sectors. Even, they have notification able
contribution in maintaining the global relation among various countries of the world. The JBL is
one of the newest banks of Bangladesh; in fact, it has been doing business just over 10 years in
the country. However, in this short period of time, it has already made a significant impact on the
economic, financial, and social system of Bangladesh. Jamuna Bank Ltd has a long and relishing
heritage. Jamuna Bank Limited (JBL) started its journey in the financial sector of the country as
an investment company back in May 20, 1999. The company operated up to 1999 with 9
branches and thereafter with the permission of the Central Bank converted in a full-fledged
14
schedule private commercial bank in June 2, 1993 with paid up capital of Tk. 39.00 crore to
serve the nation from a broader platform. The Bank and its first Branch at the busiest commercial
hub of the country at 61, Dilkusha commercial Area, Dhaka was opened. My Report titled
Foreign Exchange Practices in Private Banks: A Case Study of Jamuna Bank Ltd. is conducted
to describe the section as well as the organization where I was placed as an Intern. The first
chapter gives a broad over view about the origin of the report, objective of the report,
methodology of preparing the report, data collection procedure and its source, scope and
limitations faced while preparing the report. After the first part it has been focused in the second
part of the report. The overview consists of the definition and objective of the bank, historical
background of the banking institutions and banking operations in Bangladesh.
15
The report part started from the third chapter. In that chapter, describe the theoretical framework
of foreign exchange and other foreign exchange activities.The fourth chapter is highlighted of
Jamuna bank with SWOT analysis.The fifth chapter consists General foreign exchange policy of
the bank.The sixth chapter consists of performance evaluation of the bank in 2009.The seventh &
last chapter highlighted with recommendations, problems and Conclusion.
Table of Contents
16
Chapter-1
Introduction
1.1
1.2
1.3
1.4
1.5
10
10
11
12-13
13
Chapter-2
Scenario of Foreign Exchange Operations in Bangladesh.
2.1
15
17
2.2
of a diagram
Scenario of Foreign Exchange Operations in Bangladesh.
16-17
Chapter-3
An Overview of Jamuna Bank LTD.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Background
Corporate Information
Organization Structure
Branches information
Number of employees
Vision statement of the Bank
Mission statement of the Bank
19
19-20
21
22
23
23
23
18
3.8
3.9
3.10
3.10.1
3.10.2
3.10.3
Product scheme
Principal Activities
SWOT analysis of JBL
24
24
25
26-27
27
27
Chapter-4
Foreign Exchange: Theoretical Background &
Practical Experiences
19
4.1
4.2
4.3
4.4
4.5
4.6
29
29
30
30-31
31-32
33-35
Chapter-5
Data Analysis
& Findings
5.1
Findings
37
20
5.2
5.3
5.4
38-40
41-46
47
Chapter-6
Conclusions and Recommendations
6.1
6.2
49
50
51
52
21
22
SL
01
02
03
04
05
06
07
08
List of Figure
Framework of the overall structure of the total work
Organization Structure of JBL
Branch Network
SWOT Analysis
The international trade can be illustrated by the following diagram
Types of Foreign Exchange
Profit scenario of JBL
Capital Tire-I
Page
16
28
29
30
44
49
50
71
23
09
10
11
12
13
Capital Tire-II
Capital Tire-I & II
Deposit & Deposit Mix
Import Trade
Export Trade
SL
01
02
03
04
05
88
97
98
98
98
List of Tables
Page
16
34
43
67
68
24
06
07
08
09
10
73
96
100
101
101
25
Chapter One
Introduction
26
27
Secondary Objective:
To have exposure to the credit operation and other function of Jamuna Bank Limited.
28
To get acquainted with the loan structure, size, profile of sector wise outstanding position
of loans and system of loan classification of Jamuna Bank Limited.
Face-to-face conversation with the respective officers and staffs of the Branch
Practical work exposures from the different desks of the four departments of the
Branch covered
Various books, articles, complications etc. regarding general banking function, foreign
exchange operation and credit policies.
31
Appointing
as an
intern
Dividing
the study
work
Doing work in
different
department of
ABBL
Selecting
the topic of
the study
Collecting
informatio
n from
ABBL
Analysis of
collected
data
ninformati
Preparation of
the Final Report
Preparing
outline
Collecting
secondary
informatio
32
Foreign Exchange:
Foreign exchange refers to the process or mechanism by which the currency of one country is
converted into the currency of another country. According to Foreign Exchange Regulation Act
(FERA) 1947, "Anything that conveys the right to wealth in another country is foreign exchange.
33
Foreign exchange means and includes all deposits, credits and balances payable in foreign
currency as well as foreign currency instruments such as drafts, TCs. Bill of Exchange,
promissory Notes and Letters of Credit payable in any foreign currency. ".
Liquidity:
In terms of international trade, liquidity is the ease in which foreign currency is converted into
domestic currency. FX markets, such as the New York Jamuna Exchange, match buyers and
sellers to bring about speedy, orderly transactions.
International Trade:
34
Businesses rely on FX markets to buy currency that is spent to obtain overseas goods.
Corporations will also look to FX markets to convert international earnings back into the
domestic currency.
Imports and Exports:
Businesses all around the world are increasingly depending on buying and selling from other
countries. Although the international trade environment has changed substantially over the last
100 years, the risks have essentially remained the same. Jamuna Bank is ready to assist you with
your trade documentation and adherence to exchange control regulations.
35
SWIFT:Electronic payments are the most commonly used method of transferring any currency.
These payments are most commonly used for imports and exports, but holidaymakers may also
use them. They are done using SWIFT, a worldwide electronic payment and receipts network.
Traveller's Cheques:
If you are travelling out of the country either for business or holiday, you can buy Traveller's
Cheques directly from us.
Foreign remittance:
Foreign remittance means remittance of foreign currencies from one place/person to another
place/person. In broad sense, foreign remittance includes all sale and purchase of foreign
currencies on account of Import Export, Travel and other purposes. However, especially foreign
remittance means sale & purpose of foreign currencies for the purposes other than export and
import. SOUTHEAST Bank Limited performs the remittance function with different countries. It
maintains the foreign remittance in the following form:
Foreign Demand Draft
Inward Remittance
Outward Remittance
37
39
Chapter Two
Scenario
of Foreign Exchange
Operations in
Bangladesh.
40
Contract
Contract of sale
(1)
Ships Goods to
Exporter
(5)
(Beneficiary)
Forwards L/C to
(4)
Advising/ negotiating
Importer
(Applicant)
Bank
(8)
Obtains reimbursement
from (7)
41
Issuing Bank
42
43
1. Foreign Exchange Regulation (FER) Act, 1947 (Act No. VII of 1947) enacted on 11th March,
1947 in the then British India provides the legal basis for regulating certain payments, dealings in
foreign exchange and securities and the import and export of currency and bullion. This Act was
first adapted in Pakistan and then, in Bangladesh. The Act is reproduced at Appendix-1.
44
Bangladesh Bank is responsible for administration of regulations under the Act. Appendix 4
provides a list of Bangladesh Bank's offices and their jurisdictions.
2. Basic regulations under the FER Act are issued by the Government as well as by the
Bangladesh Bank in the form of Notifications which are published in the Bangladesh Gazette.
Notifications issued by the Bangladesh Government and the erstwhile Government of Pakistan
and the Bangladesh Bank and the erstwhile State Bank of Pakistan are reproduced at Appendices
2 and 3. Directions having general application are issued by the Bangladesh Bank in the form of
notifications, foreign exchange circulars and circular letters.
45
3. Authorized Dealers (ADs) in foreign exchange are required to bring the foreign exchange
regulations to the notice of their customers in their day-to-day dealings and to ensure compliance
with the regulations by such customers. The ADs should report to the Bangladesh Bank any
attempt, direct or indirect, of evasion of the provisions of the Act, or any rules, orders or
directions issued there under.
4. Bangladesh Bank issues licenses normally to scheduled banks to deal in foreign exchange if it
is satisfied that the bank applying for this license has adequate manpower trained in foreign
exchange.
46
5. Licenses with limited scope are also issued to persons or firms to exchange foreign currency
notes, coins and travellers' cheques in places where money changing facilities are required.
6. ADs, on their own, are free to buy and sell foreign currencies forward in accordance with tile
internationally established practices however, in all cases the ADs must ensure that the cover is
intended to neutralize the risks arising from definite and genuine transactions.
7. All remittances from Bangladesh to a foreign country or local currency credited to on resident
Taka accounts of foreign banks or convertible Taka account constitute outward remittances of
foreign exchange
47
48
49
Chapter Three
An Overview
of Jamuna Bank
50
51
52
3.1 Background
Jamuna Bank Limited (JBL) is a Banking Company registered under the
Companies Act, 1994 with its head office at Printers Building (2 nd floor and 8th
floor), 5, Rajuk Avenue, Dhaka-1000. The Bank started its operation from 3rd June
2001.
53
Jamuna Bank Limited is a highly capitalized new generation Bank started its
operation with an authorized capital of Tk.1600.00 million and paid up capital of
Tk.390.00 million, as of December 2006 Paid up capital of the Bank raised to
Tk.1072.5 million and number of branches raised to 29 (Twenty nine).
JBL undertakes all type of banking transactions to support the development of
trade and commerce in the country. JBLs services are also available for the
entrepreneurs to set up new ventures and BMRE for industrial units. The Bank
gives special emphasis on Export, Import, Trade Finance, SME Finance, Retail
Credit and Finance to Women Entrepreneurs.
54
Chartered Accountants
67, Dilkusha C/A (2nd Floor), Dhaka-1000
Legal Advisor
Mr. Habibul Islam Bhuiyan
Senior Advocate
Bhuiyan Islam & Zaidi
Advocates and Barristers
H# 29, Rd# 9/A, Dhanmondi R/A, Dhaka
Number of Branches & SME/ Agri Branches / Centers
57
Total Branches: 52
SME/ Agri Branches: 3
SME/ Agri Centers: 1
Allied Concern
Jamuna Bank Foundation
Hadi Mansion (4th Floor), 2, Dilkusha C/A, Dhaka
Subsidiary Company
Jamuna Bank Capital Management Ltd (Proposed)
58
Chairman
Board of Directors
Organization
Chart of Jamuna Bank Limited
Chief Adviser
59
Deputy Managing Director
ID, IT, CREDIT, R&P
Vice President
Senior Asst. Vice
President
Asst. Vice President
Senior Principle
Officer
Principle Officer
Senior Officer
Officer
Junior Officer
Asst.
Asst. Officer
Officer
Abbreviations:
GSD General Service Division
CAD Central Account Division
ASI Audit and Inspect
CB Central Bank
D&M Developing and
Marketing
ID International Division
R&P Research & Planning
60
Figure: 3.3
Organization chart
of JBL
61
62
63
64
JBL intends to play more important role in economic development of Bangladesh and its
financial relations with the rest of the world by interlining both modernistic and
international operations.
JBL encourages investors to boost up share market.
The bank creates wealth for the shareholders.
The bank believes in strong capitalization.
It maintains high standard of corporate and business ethics.
Jamuna Bank Limited extend highest quality of services, which attracts the customers to
choose them first.
66
67
Corporate Banking
Hi-her Purchase
Personal Banking
Lease Finance
Online Banking
Project Finance
i Loan Syndication
Consumer Credit
Marriage Scheme
Education Scheme
68
services such as safe keeping, collections, issuing guarantees, acceptances and letters of credit to
its customers through its branches in Bangladesh.
In the competitive area of marketing are SWOT analysis is based on product, price, place and
promotion of a financial institution like private Bank. By doing the SWOT analysis it is possible
70
to find out the strengths, Weaknesses, opportunities, and threats of the JBL. From the SWOT
analysis we can figure out on going scenario of the Bank.
SWOT Analysis
Internal Factors
External Factors
Internal factors which are prevailing inside the concern which include Strength and
Weakness.
71
Strength
Weakness
Opportunity
Threats
On the other hand another factor is external factors which act as opportunity and threat.
2. The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients
are lost and the bank becomes unable to meet targets.
3. No substantive use of Annual Confidential Report (performance evaluation form of the
employee) to reward or to punish the employee. Hence the employee becomes
ineffective.
4. The bank lacks aggressive advertising and promotional activities to get a broad
geographical coverage.
5. Computer facility for all the officers is not available. Moreover, all the officers have no
computer knowledge.
6. The bank has no any research and development division.
74
Opportunities:
1. The bank can introduce more innovative and modern products and services for then
customers.
2. It can diversity its portfolio by taking new sector.
3. Many branches can be opened to reach the banks services to the remote areas.
4. It can recruit more efficient and experienced persons to give fast and efficient service to
the customers
Threats:
1. The common attitude of Bangladeshi clients is default.
75
2. Multinational as well as the fast growing local banks with modern products and services
are capturing huge market within short period a resulting to switch over the existing
customers of the bank.
3. Bangladesh Bank Sometimes requires Private Commercial Banks to be abides by such
rules and regulations which are not suitable for every commercial Bank
The common attitude of Bangladeshi clients is default. Delegation of authority is centralized and
the bank has no any research and development division.
Conclusions concerning the companys overall business situation:
Where on the scale from alarmingly week to exceptionally strong does the
attractiveness of the companys situation rank?
Pursue those market opportunities best suited to company strengths and opportunities.
78
Chapter Four
Foreign
Exchange: Theoretical
Background &
Practical Experiences
79
quality.
To introduce fully automated systems through integration of information
technology.
To ensure an adequate rate of return on investment.
To keep risk position at an acceptable range (including any off balance sheet risk).
To maintain adequate liquidity to meet maturing obligations and commitments.
80
Management System.
To ensure optimum utilization of all available resources.
To pursue an effective system of management by ensuring compliance to ethical
To manage and operate the Bank in the most efficient manner to enhance financial
81
According to Foreign Exchange Regulation Act (FERA) 1947, "Any thing that conveys the right
to wealth in another country is foreign exchange. Foreign exchange means and includes all
deposits, credits and balances payable in foreign currency as well as foreign currency
instruments such as drafts, TCs. Bill of Exchange, promissory Notes and Letters of Credit
payable in any foreign currency. ".
This definition implies that all business activities relating to Import, Export, Outward & Inward
Remittances, buying & selling of foreign commissions, etc. come under the purview of foreign
exchange business. Foreign exchange department of banks plays significant roles through
providing different services for the customers.
84
85
L/C
Import
Export
Foreign
Remittance
Foreign
Currency A/C
Inward
Remittance
Outward
Remittance
86
Importer (Buyer)/Applicant
Exporter/Seller (Beneficiary)
Confirming Bank
Negotiating Bank
a) Applicant
The person/body (customer of the bank) who requests the bank (opening bank) to issue letter of
credit. As per instruction and on behalf of the applicant, bank open L/C in line with the terms and
conditions of the sales contract between the buyer and seller.
88
d) Beneficiary
Beneficiary of the L/C is the party in whose favor the letter of credit is issued. Usually they are
the seller or exporter.
e) Confirming Bank
The Bank, which under instruction in the letter of credit, adds confirmation of making payment
in addition to the issuing bank. It is done at the request of the issuing bank having arrangement
with them. This confirmation constitutes a definite undertaking on the part of confirming bank in
addition to that of issuing bank.
90
f) Negotiating Bank
The Bank, which negotiate documents and pays the amount to the beneficiary when presented
complying credit terms. If the negotiation of documents is not restricted to a particular bank in
the L/C, normally negotiating bank is the banker of the beneficiary.
g) Reimbursing/Paying Bank
The Bank nominated in the credit by the issuing bank to make payment stipulated in the
document, complying with the reimbursing bank.
91
92
Yes
93
discrepant?
Yes
Do they agree to
accept document
despite
discrepancies?
No
94
Do they accept
documents on
collection basis?
No
Export
Yes
95
Yes
Mark Banks Lien on the page of the original L/C
If No
96
Yes
No
No
97
Yes
Negotiate documents
No
No
98
FDBP
ImportLodgment
trade in/Retire
Bangladesh
is controlled under the Import and Export control Act 1950.
Authorized Dealer Banks will import the goods into Bangladesh following the import policy,
public notice, F.E. circular and other instructions from competent authorities from time to time.
The import functions of the branch as far I have understood are discussed bellow:
100
(g) Insurance Cover Note with Money Paid Receipt covering value of goods to be imported plus
10 (Ten) percent above
h) L/C application Form (MF-fx l3) duly signed by the importer
i) Letter of Credit Authorization Form (LCAF), commercial or industrial as the case may be,
duly signed 'by the importer and incorporating New ITC number of at least 6(six) digits under
the Harmonized System as given in the Import Trade Control Schedule 1988.
j) IMP Form duly signed by the importer
Time Limit for Opening of L/C:
L/Cs shall be opened within 150 days from the date of issuance of LCAF.
101
Chapter- 5
Data Analysis
& Findings
102
103
5.1 Findings
104
While working at Jamuna Bank, I have attained to the newer kind of experience. After the
collecting and analyzing of data I have got some findings. These findings are completely from
my personal point of view. Those are given below.
Based on my experience, I can be said that Jamuna Bank should reconsider its services
that better satisfy customer needs and requirements Bank should be more tactful in
dealing with the customers and launch new products that fully meet customer
expectations.
Jamuna Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth the profits and deposits
105
sectors.
The bank follow the online banking system to provide the customer better services; but
all the branches of Jamuna bank are not follow the online banking system
During the last 6 years (2004-2010) the average growth of deposits and advance were
33% and 37% respectively, which was 20% in the case of import business. 72% in export
business and 36% in guarantee business during the period, shareholders equity grew at
the rate of 40%. The bank always fulfills Die provisioning requirements as set by
Bangladesh Bank reflecting sound financial health and discipline
The consistent and increasing growth trend of the above mentioned performance
indicators has increased depositors' confidence as well as good will/reputation of the
bank to a great extent and these have contributed to increase the shareholders value.
106
The Banks Human resources Development strategy is to build up quality manpower with
conceptual/managerial Knowledge, skills through designing/arranging of continuous inhouse and outside training programs
The bank focuses on customer-friendly marketing approaches by offering various
efficient delivery of personalized banking services at the clients door steps and caters to
the ever-growing financing needs of clientele at a competitive price
The company philosophy to workout best solutions for customers and clients as a
business and customer friendly Bank
Jamuna bank has an interactive corporate culture & friendly working environment.
107
108
despite this economic crisis, facing intensified competition of the industry. The bank remained in
financial strong position with its continued focus on the vision of becoming countrys finest
corporate citizen , providing excellent and need-based customer service.
The bank mobilized deposits of BDT 42356 million as at December 31, 2010 compared to BDT
27307million, till 2009. Total loans and advances stood at BDT 32287million at the end of 2010
that was BDT 21036million at the end of 2009. Import business stood at BDT 46685 million in
2010 compared to BDT 30312 million in 2009. Export business stood at BDT 21407 million in
2010 as against BDT 18617 million in 2009. The bank collected foreign remittance of BDT 5.06
billion in 2010 compared to BDT 4.72 billion in 2009.
110
In 2010, the bank was able to make profit before tax BDT 1.66 billion as compared to 1.28
billion indicating 29.73% growth. Net profit attributable to shareholders stood at BDT 807.52
million. The return on equity remained 18.80% during 2010 and earnings per share (EPS) stood
at BDT at 56.92. Non performing loan (NPL) ratio reduced to 2.54% in 2009 as compared to
2.86% in 2008.
JBL made adequate provision against classified loans which is significantly higher than last year.
Adequate provision made the bank stronger than before. Tier-1 capital stood at BDT 3054.14
million at the end of 2010 compared to that of BDT 2131.02 at the end of 2009. Tier-2 capital
reached to BDT 943.52 million at the end of December 2010 as compared to that of BDT
313.32million at the end of 2009. Return of assets (ROA) increased to 1.89% in 2009 from
111
1.51% in 2009 and return on equity (ROE) also increased significantly to 18.80% from 17.75%
in 2009. The capital adequacy ratio (CAR) increased to 10.48% in 2009 as against that of
10.17% in 2009. Net interest margin (NIM) stood at 3.58% at the end of 2010, suggesting a
healthy growth in net interest income.
112
P
a
2010
2009
113
Paid up Capital
1,621,882,500
1,313,265,200
Total Capital
3,997,664,705
2,444,338,501
Capital surplus/(deficit)
880,659,405
392,695,301
48,730,951,557
31,646,629,499
Total Deposits
42,356,203,563
27,307,936,141
32,287,661,155
21,036,861,012
14,718,947,868
9,169,471,638
76.23%
77.04%
2.20%
2.84%
10
923,123,207
479,437,923
11
710,858,000
598,309,000
12
465,638,000
296,285,000
13
114
115
116
117
Operating Profit
Year
Tk.(Million)
2005
419.94
2006
701.32
2007
824.20
2008
1040.20
2009
1914.25
118
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2005
2006
2007
2008
2009
119
Capital Structure:
Jamuna Bank Limited has a conviction of maintaining a strong capital base in carrying on opereat
operation on June 03, 2001 with a paid-up capital of Tk.390.00 million divided into 3.90 million
120
ordinary shares of Tk.100 each. The authorized capital of the Bank is Tk.1600 million divided
into 16.00 million of Tk.100 each. The Bank's paid-up capital as at 31st December 2009 stood at
Tk.1621.88 million. Tk429.00 million was raised through initial public issue of 4.29 million
ordinary shares of TkA 00 each with a premiu- each while Tk.214.50 million was raised by issue of
Bonus Shares in the ratio of 1:4, i.e. one bonus _s-holding of 8.58 million ordinary shares as on
31.12.2005, for every 4 shares out of profits upto the Thus, as on 31st December 2009, the total
shareholder's equity and reserve stood at Tk.3997.66 million!"
Capital Tire-I
Capital Tire-II
121
3500
2010
3000
2009
2500
2008
2000
2007
1500
2006
1000
2005
500
2004
2003
2005
2006
2007
2008
2009
122
4000
3500
3000
2500
2000
1500
1000
500
0
2005
2006
2007
2008
2009
The Bank adopted BIS risk adjusted capital standards to measure the capital adequacy in line with
set by Bangladesh Bank. According to the instructions contained in Bangladesh Bank's BRPD
Circ dated May 14, 2007 relating to Capital Adequacy every commercial bank operating in the
required to maintain at minimum 9 percent of its risk-weighted assets as capital. Jamuna Bank
Li-maintain Capital Adequacy ratio of 12.83 percent as at 31.12.2009 which was higher than the
require Adequacy Ratio. The amount of capital with break-up is given below:
Particulars
Tier I Capital
Paid up Capital
Non-repayable Share Premium Account
Statutory Reserve
Retained Earnings
Proposed Bonus Share
Tier II capital
1 % Provision against Unclassified Loans
Exchange Equalization Fund
3054.14
1621.88
816.48
615.78
943.52
332.64
0.33
3997.66
2131.02
1313.27
503.84
313.91
313.32
213.80
0.33
2444.34
126
In commercial banks operation starts with mobilization of resources i.e. tapping of deposits and
then the said resources are deployed as loans, advances and investments for the purpose of
maximizing wealth which -sans deposits have dominance in commercial bank's operations. That
is why; there is a common saying that deposit is the lifeblood of a bank. The comparative
position of deposit mix of the Bank as on 31.12.2009 and 31.12.2008 is depicted below:
Type of Deposit
As on
31.12.2009
As on
31.12.2008
Changes
(+)/(-)
Changes in
% over the
127
4715.31
516.31
2891.25
25201.52
2762.49
6118.32
151.00
151.00
3283.21
412.03
1679.40
16360.18
1335.16
4131.80
106.16
27307.94
+1432.10
+57.59
+1211.85
+8841.34
+1427.33
+1986.52
+44.84
+15048.26
year
43.62
25.30
72.15
54.04
93.54
48.07
42.24
55.10
128
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2005
2006
2007
2008
2009
129
130
50000
Year
2005
2006
2007
2008
2009
Import
Tk. (Million)
12152
15458
22192
30312
46685
40000
30000
20000
10000
0
2005
2006
2007
2008
2009
Export Trade
131
The Bank handled export business worth Tk.21406.94 million in the year under report. In 2008
export business handled by the Bank was Tk.1861.43 million. Thus there was an increases of
Tk.2789.51 million in export business handled by the Bank, being 14.98 percent over the
preceding year. The major export item was Readymade Garments.
132
Export
Year
2005
2006
2007
2008
2009
25000
Tk. (Million)
6522
11584
13990
18617
21407
20000
15000
10000
5000
0
2005
2006
2007
2008
2009
133
Foreign Remittance
Total foreign remittance in a single year,i.e. in 2009 made a record high to the tune of BDT
5061.30 million compared to that of BDT 4722.90 million in 2008. The Bank has deepened its
step on the foreign soils further by establishing more and more remittance arrangements with
overseas exchange companies where Bangladeshi expatriates are working. These Include U.K,
U.A.E, Kuwait, Baharain, Canada, Italy, France etc. Moreover, for prompt and safe distribution
of this hard earned money to their near and dear ones in every corner of the country, the Bank
has made an arrangement with Bangladesh Post Office, Western Union and some other agencies.
Particulars
Impo
a.
b.
L/C (Cash)
L/C (BTB
Local)
As on 23/06/2010
No.
15
17
Amount
5.29
2.82
Total
Amount is Crore Tk.
No.
Amount
756
452.64
2406
400.05
134
r
t
c.
Export
Remi
ttanc
L/C (BTB
Foeign)
Sub Total BTB
L/C
Total
a)Export Bill
(Gen)
b) Export Bill
(RMGF
c) Export Bill
(RMGL)
Total
Inward
Outward
Total
890
290.80
4.15
893
294.95
3279
688.03
20
6.97
3299
695.00
3992
374
1135.38
107.16
35
1
12.26
0.67
4027
375
1147.64
107.83
2350
711.01
19
5.33
2369
716.33
1626
229.87
12
1.88
1638
231.75
4350
0
0
1048.03
51.57
5.30
56.87
32
0.00
0.00
-
7.88
4382
0
0
1055.91
51.57
5.30
56.87
135
Banking industry has entered into the new Risk Based Capital Adequacy Framework (Basel II )
arena from 2010. JBL has already taken necessary steps to comply with this accord properly. The
bank will also continue strengthen its position by expanding the core business activities.
136
Foreign Exchange dealing is a technical job and has a great prospect in our country.
Floating Exchange Rate has been introduced and it has put the banking sector into a new
era. Bangladesh Banks total control is not there but there is some risk factor involved in
it. Jamuna Bank Ltd wanted to find whether the process of their foreign exchange
operation is good enough to avoid any unwanted risk and the prospect in foreign
exchange dealing in their present standing,
The office of JBL, Malibagh Branch, and Dhaka is not sufficient enough.
In JBL, Malibagh Branch, Dhaka maximum officers are working in a specific desk for a
long time and for this reason they may feel monotony and certainly they are not be able
to know the overall banking activities through they have enough eagerness to know.
138
Foreign Exchange Section is one of the busiest sections in Bank. Sometimes it is found
that all works are not performed efficiently due to insufficiency to Officer/Staffs.
Training facility isnt sufficient especially for the lower level officers.
Still now, like most of the branches of JBL, Malibagh Branch, Dhaka, follows the
traditional banking system.
JBL, Malibagh Branch, Dhaka, has no reception section and has no receptionist that may
receive phone calls and complains from customer and supply the enough information.
In this branch there is lack of modern equipments.
139
140
141
Chapter- Six
Conclusion and
Recommendations
6.1 Recommendations
In view of the facts, the following recommendations are made to the respective concerned for
the consideration and implementation.
The bank should have standardized system of measuring customer satisfaction.
Need for integrity of the officials within reasonable limits.
142
They need to maintain an upgraded guideline for the employees to avoid any kind of
confusion.
They should enhance their savings facilities by introducing many other saving
schemes, because customers really look for various savings programs.
Special increment should be given to middle and junior level managers and executives
also to increase their motivation level.
144
6.2 Conclusion
From the beginning of greater change in the world economic structure, banking activities has
becoming an important thing. Now a day the idea of banking is also developed and a huge
number of private commercial banks are just on waiting for business. So it is a matter of think
that how to establish an idea with different techniques, In Bangladesh, Commercial banks are
playing vital role in the development of our economy and financial system. Standard Charted
145
Bank Limited has a strong position in the todays competitive market. The JBL, Malibagh
Branch, Dhaka also contributing a better proportion of profit in JBLs total earning. Total
analysis of the bank has the greater opportunity to do better in the future.
Day by day JBLs area of service is increased all over the country through setting up new
branches at new places. The reliability of the customer on JBLs increasing day by day for its
better services. But they may introduce online and ATM services comparing with other
commercial bank to improve their services and to make efficient and easy customer services.
They also may follow the given recommendations in order to improve day by day. Jamuna Bank
Limited may contribute a vital role in the socio-economic prospective and in the development of
our economy.
146
The JBL has been trying to operate its business successfully in Bangladesh since 1999. JBL has
already developed an image of goodwill among its clientele by offering its excellent services.
This success has resulted from dedication, commitment and dynamic
Leadership of its management over the periods. During the short span of time of its operation,
the bank bas successfully grabbed a position as a progressive and dynamic financial institution in
the country. If the bank goes this way. It is expected that in the near future JBL may become one
of the top performers in the banking sector.
Here I observed its deposit figure is strong. The bank should take necessary action for
maintaining .JBL has been able to maintain its recovery position in sector wise credit financing is
147
up to the satisfactory level. At last it should give more emphasis in this sector to acquire more
profit.
References
148
149
150
Acronyms
A/C
AD
B/L
BB
BOE
C&F
C&F
CC
CCI & E
CIB
CIF
CRF
DD
DP Note
EPB
ERC
EXP
FC
FDD
FDR
HS Code
IBC
IBCA
IBCT
IBDA
IMP
IRC
L/C
LCAF
LIM
LTR
OBC
PAD
PO
PSI
STD
SWIFT
TC
TIN
TT
Account
Authorized Dealer
Bill of Lading
Bangladesh Bank
Bill of exchange
Clearing & Forwarding
Cost & Freight
Cash Credit
Chief Controller of Import & Export
Credit Information Bureau
Cost Insurance & Freight
Clean Report Findings
Demand Draft
Demand Promissory Note
Export Promotion Bureau
Export Registration Certificate
Export Form
Foreign Currency
Foreign Demand Draft
Fixed deposit receipt
Harmonized system of coding
Inward Bills for Collection
Inter Branch Credit Advice
Inter branch Credit Transaction
Inter Branch Debit Advice
Import Form
Import Registration Certificate
Letter of Credit
Letter of Credit Authorization Form
Loan against Imported Merchandise
Loan against Trust Receipt
Outward Bills for Collection
Payment against Document
Payment Order
Pre Shipment Inspection
Short Term Deposit
Society for Worldwide Inter bank Financial
Travelers Cheque
Tax Identification Number
Telegraphic Transfer
151
152
153
154