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Chapter - 2 Organizational Profile of Janata Bank Limited
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
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
SWIFT JANBBDDH
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:
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:
Offices No.
Local Office 1
Corporate-1 Branch 30
Corporate-2 Branch 77
Overseas Branch 4
Grade-1 Branch 267
Grade-4 Branch 82
Borad of Director
Managing Director
Executive Officer
Assistant Officer
Supporting Staff
Figure: The Hierarchy of Janata Bank Limited
2.9 SWOT Analysis:
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.
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.
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
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.
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:
advances
Credit deposit ratio 70.77% 62.80% 61.50% 61.97% 59.71%
investment
Operating profit 11,369.48 10,038.29 10,720.50 10,683.34 12,127.10
on loans and
advances
Interest spread 3.58% 3.05% 2.59% 4.10% 4.64%
(ROI)
Return on assets 0.33% 0.33% 0.70% 0.61% 1.42%
(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)
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.
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