CHAPTER -2

ORGANIZATIONAL PROFILE OF JANATA BANK

LIMITED

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2.1 Banking in Bangladesh:

Bangladesh is an underdevelopment country and trying hard to take place in the list of
developing countries. Modern and wealthy banking system is the prior condition of
development. Smooth banking network played a vital role for national economy as well
as social development. Over last few years the banking world has been undergoing a lot
of changes due to deregulation, technological innovation and globalization etc. These
changes also made major changes of a countries economy.Qualified and skilled
management as well as better trained and dynamic staff is essential to run a sound
financial instution; Banking sector in Bangladesh is fairly challenged from different
angles though its prospect is bright in the future.

Banks are the main tool of the financial system of the country like Bangladesh. Though,
Bangladesh boost up economic growth rates in recent years, a majority of countries
population still remains unbanked. New socio-economic concept in Bangladesh aims to
provide financial services to unafforded under privileged People. To achieve inclusive
development and growth of financial service to all section of society’s as well as to the
financially backward pockets is important for smooth growth of the economy.

A strong and healthy role of banking sector is important in the economy for development.
In Bangladesh it has been playing a vital role in economy by providing credit for
performing economic activities and at the same time conglomerate the surplus capital
from general public through different types of depository incentives. A sound lending
management, appropriate strategies and legation are required.
The performance of banking sector in the recent past has not been satisfactory. At present
key performance of commercial banks in the country reflect the poor health of Banks.
Most banks hsve not been able to show significant improvements on indications such as
capital risk weighted asset, non-performing loans, return on equity, return on asset,
liquid asset and excess liquidity. In recent years government and Bangladesh bank has
taken initiatives to reform in financial sector such as maintaining discipline in banking
sector, Steps for prevention of money laundering, loan write-off, guidelines for
rescheduling of various types of loans and measures to gain transparancy in banking
sector. As a result the image of banking sector is improving.
2.2 History of Janata Bank Limited:
After the liberation war the United Bank Limited and Union Bank Limited were
nationalized. This two bank afterwards is known as Janata Bank. This bank operates as
state owned bank and it becomes public limited company in 21 may 2007 as per
company act 1994.Janta bank has 912 branches across the country including 4 overseas
branches in United Arab Emirates (UAE). It has 11,966 (As on 30.06.2019) employees
and has tied up with 1202 foreign agent all over the world. At the end of 2018, it have
Deposit BDT 649,440 million, Advance BDT 459,580.05 million with Authorized
capital BDT 30,000 million and paid up Capital BDT 19,140 million.

Features Values

Name Janata Bank Limited

Genesis Janata Bank Limited is the second largest State Owned Commercial
Bank (SCB) in Bangladesh. It is playing a vital role in the financial
activities in the country. The Bank got the title “Janata Bank” by
combining two bank named United Bank Limited and Union Bank
Limited through the nationalization order (President's Order- 26) of
1972. After that, it becomes Limited company in 2007. This Janata
Bank contributes to the socio-economic development of
Bangladesh from its birth and it’s also helping to build a concrete
financial ground of the country.
Registered Janata Bhaban, 110, Motijheel Commercial Area Dhaka - 1000,
Address Bangladesh.
Legal Status Public Limited Company
Chairman Dr. Jamaluddin ahmed , FCA
Managing Md. Abdus Salam Azad (F.F)
Director
 Company Hussain Yeahyea Chowdhury
Secretary
Date Of 21 may 2007
Incorporation
Authorized BDT 30,000 million
Capital
Paid Up BDT 19,140 million
Capital
Face value BDT 100 Per Share
Per Share
Shareholding 100% Share Owned By The Government Of Bangladesh
Pattern
No. Of 11,966 ( As on 30.06.2019)
Employees
Phone +88 02-9560000, 9566020, 9556245-49, 9565041-45, 9560027-30

Fax 88-02-9554460, 9553329, 9552078

SWIFT JANBBDDH

(Janata Bank Limited)

2.3 Vision and Mission of Janata Bank Limited:

Vision:
To become the effective largest commercial bank in Bangladesh to support socio-
economic development of the country and to be a leading bank in South Asia.

Mission:
Janata Bank Limited will be an effective commercial bank by maintaining a stable growth
strategy, delivering high quality financial products, providing excellent customer service
through an experienced management team and ensuring good corporate governance in
every step of banking network.

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2.4 Slogan of Janata Bank Limited:

A Committed Partner in Progress

2.5 Main Objectives of Janata Bank Limited:

The objectives for which the bank is established as follows:

 To carry on, transact, undertake and conduct the business of banking in all
brunches.
 Full implementation and utilization of the bank’s excellence programs which
aims to provide service to customers.
 To carry on business as financiers, promoters, capitalists, financial and
monitory agents, concessionaires and brokers, dealing in exchange, securities
and all kinds of mercantile banking etc.
2.6 List of Region/Area of Janata Bank Limited:

Table 2.1: List of Branches of Janata Bank Limited.

Offices No.
Local Office 1
Corporate-1 Branch 30

Corporate-2 Branch 77

Overseas Branch 4
Grade-1 Branch 267

Grade-2 Branch 224

Grade-3 Branch 227

Grade-4 Branch 82

Total Branches 912

2.7 Organizational Stucture of Janata Bank Limited:

Board of Directors, constituted by 10 members, has authority to organize, operate and

manage its affairs on commercial consideration within the board policy of government.
The directors are representatives from both public and private sectors. Members of the
board including M.D are governments 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. The Board of Directors is
composed of 10 members headed by a chairman.

2.8 Organorgam of Janata Bank LImited (Administrestion):

Borad of Director

Managing Director

Assistant General Manager

Senior Executive Officer

Executive Officer

Assistant Executive officer

Assistant Officer

Supporting Staff
 Figure: The Hierarchy of Janata Bank Limited
2.9 SWOT Analysis:

SWOT analysis refers to analysis of strengths, weaknesses, opportunities and threats of

an organization. This facilitates the organization to make its future performance
improved in comparison to its competitors. An organization can also study its current
position through SWOT analysis. For all of these, SWOT analysis is considered as an
important tool for making changes in the strategic management of an organization.
Through direct observation and discussion with the JBL officials I am able to point out
some major strength and weaknesses as well as some threats and opportunities regarding
the various issues of the Bank such as –

1..1 Organizational identity

1..2 Service level
1..3 Operational efficiency
1..4 Technology
1..5 Employee efficiency etc. along with many other issues.

2.9.1 STRENGTH
a) Top Management

The Janata Bank Limited is operated by a very efficient management group. The top
management officials have all worked in reputed banks and their years of banking
experience, skill, and expertise will continue to contribute towards further expansion of
the bank. So, the top management of the bank is the major strength for JBL.

b) Corporate Culture

JBL has an interactive corporate culture. The working environment of JBL is very
friendly, interactive and informal. And, there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture works as a
great motivation factor among the employees of the bank.

c) Various Products and Services

JBL offers various types of products and services to their clients. So those, Customers
can choose the right products that will fulfill their needs. Strong employee bonding and
belongings JBL employees are one of the major assets of the company. The employees
of JBL have a strong sense of commitment towards organization and also feel proud and
a sense of belonging towards JBL. The strong organizational culture of JBL is the main
reason behind its strength.

d) Efficient Performance

It has been seen from customers’ opinion that JBL provides hassle-free customer
services to its client comparing to other financial institutions of Bangladesh.
Personalized approach to the needs of customers is its motto.

e) Strong Financial Position

It has been seen that the net profit has been gradually rising over the years. Furthermore,
JBL is not just sitting on its previous year’s success, but also taking initiatives to
improve.
2.9.2 Weakness
Dependent on long term deposits Janata Bank heavily dependents on fixed deposit. The
bank have to pay large amount of interest for the just because of highly depend on fixed
deposit

a) Real time online banking

Today online banking is the best way to earn profit for the bank. So, JBL have to earn
more profit by developing online banking system to most of its branches through
automation.

b) Absence of strong marketing activities

JBL currently don't have any strong marketing activities through mass media e.g.
Television. TV ads play vital role in awareness building. JBL has no such TV ad
campaign. Although they do a lot of CSR activities compared to other banks.

c) Product Difference
Not enough innovative products In order to be more competitive in the market, JBL
should come up with more new attractive and innovative products.

d) Discouraging small entrepreneurs

JBL provides Loans to mostly of its solvent clients. However, they need to increase rural
and green loan and SME loan.
2.9.3 Opportunities
a) Country wide network
The ultimate goal of JBL is to expand its operations to whole Bangladesh. Nurturing
this type of vision & mission & to act as required, will not only increase JBL's
profitability but also will secure its existence in the long run.

b) Introducing more branches to rural area and foreign country

There are many important places in Bangladesh as well as foreign country, where
customers are eagerly waiting for doing banking transactions. But no existence of banks
is in those places. Although JBL already has branches to provide services to its
customers, it must also open more branches in those places where people needs banking
facilities.

c) Introducing special corporate scheme

JBL can introduce special corporate schemes for the corporate customers or officers
who have an income level higher from the service holders. At the same time, they can
introduce schemes or loans for various service holders. And the schemes should be
separate according to the professions, such as engineers, lawyers, doctors etc.

d) Creation of brand image

As we know that brand creates value. So JBL need to develop their brand image by
developing their products and services.

2.9.4 Threats
a) Similar products
Similar products are offered by other banks Now-a-days different foreign and private
banks are also offering similar type of products with an almost similar profit margin. So,
if all competitors fight with the same weapon, the natural result is declining profit.

b) Classified Loans
The problem of non-performing loans or default loans is very minimum or insignificant.
JBL has to remain vigilant about this problem so that proactive strategies are taken to
minimize this problem.

c) Industrial Downturn
Bangladesh is economically and political unstable country. Flood, draught, cyclone, and
newly added terrorism have become an identity of our country. Along with inflation,
unemployment also creates industry wide recession. These caused downward pressure
on the capital demand for investment.
d) Increased competition
In banking sector day by day competition are increased and lots of new bank are coming
into the competition. So it is big threat for JBL.
2.10 Financial Highlights:
Financial situation of Janata Bank Limited of several years is given below:

Particular 2018 2017 2016 2015 2014

Paid Up Capital 19,140 19,140 19,140 19,140 19,140

Total Capital (Tier- 44,596.31 43,189.82 37,128.33 36,468.38 34,301.04
I+Tier- II)
Required Capital 44,341.90 40,408.89 36,562.52 35,420.25 33,392.33
Surplus/(shortage) of 254.41 2,780.93 565.82 1,048.13 908.71
Capital
Capital Risk 10.06% 10.06% 10.16% 10.30% 10.27%
Weighted
Asset Ratio (CRAR)
Total Assets 805,988.41 778,603.91 683,157.5 628,415.27 586,082.9
Total Deposits 649,440.78 641,819.15 568,911.1 516,010.74 478,535.5
Total loans and 459,580.05 403,037.41 349,861.3 319,773.25 285,747.6

advances
Credit deposit ratio 70.77% 62.80% 61.50% 61.97% 59.71%

Total classified loans 75,995.50 59,359.80 43,181.70 37,375.67 31,766.86

Percentage of 16.54% 14.73% 12.34% 11.69% 11.12%

classified loans
against total loans
Import 143,582.20 126,650.00 147,181.8 144,556.80 176,671.0

Export 139,920.90 154,454.20 145,373.6 154,079.70 153,252.0

Foreign remittance 72,022.00 90,081.80 106,336.3 106,677.10 103,982.0

Income from 14,414.82 16,597.90 18,260.44 16,742.67 13,736.50

investment
Operating profit 11,369.48 10,038.29 10,720.50 10,683.34 12,127.10

Profit after tax and 2,686.50 2,605.48 4,807.88 3,813.15 9,551.39

provision
Cost of fund 7.28% 8.05% 7.94% 8.82% 9.23%

Cost of deposit (%) 4.47% 5.49% 6.76% 7.34% 7.75%

Average return 8.04% 8.54% 9.35% 11.44% 12.39%

on loans and
advances
Interest spread 3.58% 3.05% 2.59% 4.10% 4.64%

Net spread 1.48% 1.77% 2.06% 2.45%

Earning assets 610,004.45 605,444.04 548,634.4 496,866.59 461,290.0

Non-Earning assets 195,983.96 173,159.87 134,523.1 131,548.69 124,792.9

Return on investment 6.90% 7.19% 8.61% 8.47% 9.39%

(ROI)
Return on assets 0.33% 0.33% 0.70% 0.61% 1.42%

(ROA) after tax

Return on equity 5.23% 5.22% 11.44% 9.66% 30.09%

(ROE)
 Earnings per share 14.04 13.61 25.12 19.92 86.31

(EPS)
Net operating income 59.40 52.45 56.01 55.82 63.36

per share
 Figures are in million. (Janata Bank Limited)

2.11Product and Survives Offered by Janata Bank Limited:

Deposit Loans & advances E-service Modern
Banking
Current deposit Agriculture loans ATM (automated Online
teller machine) banking
Savings deposit Working capital loan Internet banking JB green
communication
Special notice deposit Rural credit Automated branch JB remittance
banking
Fixes deposit Tannery trading Green Banking JB PIN cash
Schemes deposit Real estate loan E-GP payment
service
Home and flat loan OMIS (ERP)

Consumers financing PMIS

Specialized loan for BEFTN user manual

women entrepreneur

2.12Green Financing of Janata Bank Limited:

We have given preference to eco-friendly business activities and energy efficient
industries. Environmental infrastructure such as renewable energy project, clean
water supply project, Effluent Treatment Plant (ETP) and projects with ETP, solid &
hazardous waste disposal plant, bio-gas plant, bio-fertilizer plant, brick fields having
Hybrid Holfman Kiln (HHK) tecnology are encouraged as a part of green financing
practices. We are also financing in various ecol friendly projects under re-financing
scheme of Bangladesh Bank at a subsidized rate of interest that includes:

Loan to 333 solar panels

Loan to 33 bio-fertilizer plants

 Loan to 45 biogas plants

Loan to 15 HHK brick fields

Loan to 46 Vermi composed fertilizer project

Finance in Zigzag brick fields.

2.13Future Outlook of Janata Bank Limited:

 Build up deep-rooted and harmonious banker-customer relationships by
dispensing prompt and improved services to the clients.
 Developing a vibrant capital market by ensuring more effective participation
of the Bank in the share market.
 Make best use of latest technologies for giving the clients a taste of modern
banking so as to encourage them to continue and feel proud of banking with
JBL.
 Upgrade and diversify of banking service to provide maximum satisfaction to
the respected clients.
 Respond to the need of the time by participating in syndicated large loans
financing, thereby expanding the area of investment of the Bank.
 More facilities will be provided to the exporters on the basis of export and
facilities performances.
 To take the competitive position charge, decrease commission and other
facilities will continue to complete the journey

To gain confidence of all quarters involved in the economic development of the

country through pursuance of a policy of continuous adjustment and coordination
of the Bank’s external trade programmers with the dynamism inherent in the
international trade and payments system.

2.14Corporate Social Responsibilities of Janata Bank Limited:

JBL conducts it CSR in 2 ways- policy driven and through direct participation in
specific programs. However, JBL intends to adopt CSR practices, more in the formal
and structured manner in light of the Bangladesh bank guidelines for mainstreaming
CSR practices in the financial sector. Future efforts of the bank in respect of CSR will
include more involvement of its stakeholders in terms of their expectations and needs
in order to incorporate more responsible business practices in all of bank’s functions
and operations with a goal to fulfill social, economic, environmental, and ethical
responsibilities of the bank.

Total involvement for CSR activities stood at tk. 1.77 crore at the end of the year
2013. JBL channelized this CSR outlay in diverse areas judging from need and
importance it attaches to the bank’s perspectives.

JBL believes that CSR is first and foremost a commitment to contribute to the society
for improving the quality of lives of its people, particularly for that segment of the
people who are under privileged and less fortunate in terms of basic needs such as
food, health, education, housing etc and also alongside to remain a sincere benefactor
of the country’s rich heritage of arts, culture and sports. Besides addressing the basic
social needs of the country, JBL also believes that CSR can be a genuine platform to
address growing environmental concerns, more even when Bangladesh is likely to be
the most affected country in the world due to climate change caused from the
irresponsible and unrestricted carbon emissions by the western developed nations.

 Standing beside the families affected by BDR tragedy.

 Warm clothes/blanket distribution to the affected underprivileged and
destitute people.
 Donation to Bangladesh Organization for Disabled Advancement (BODA).
 Support to Cancer Care Center.
 Caring for the Environment
 Health and Safety of employees

 JBL, Corporate Branch, Rangpur at a Glance:

Janata Bank Limited is established under the Bangladesh Banks order 1972; it is the 2 nd
largest state owned commercial bank in Bangladesh immediately after the liberation. It
incorporated as a Public Limited Company on 21, May 2007 vide certificate of
incorporation No-C66933 (4425) 07 in the early era of privatization. The bank has taken
over the business of Janata Bank at a purchase consideration of TK. 2593.90 million. The
operation of Bank Limited works through 912 branches and including 4 overseas
branches. It is linked 1239 foreign correspondents all over the world. Corporate Branch,
Rangpur one of them. Corporate Branch, Rangpur start its journey on 15 December 1975.
It situated at Betpotty, Kotwali, Rangpur 5400.

2.16 Profile of Corporate Branch, Rangpur:

Name of the Branch Corporate Branch, Rangpur

Branch Code 0008

Location Betpotty, Kotwali, Rangpur 540

Deposits BDT 2242367890.73 (As on 25.08,19)

Investment BDT 256743893.77 (As on 25.08.19)

No. of Manpower 20

No. of Borrower 512 (As on 25.08.19)

No. of Depositor 9802 (As on 25.08.19)

Web/E-mail [email protected]

Phone Number 052162735

Established 15 December 1975