functions of commercial bank & nationalized bank

7/29/2019 Functions of Commercial Bank & Nationalized Bank.

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Name BBAID:

Name BBA ID:

1.Mohammad

Torqul IslamJony (GroupLeader)

11133013 6.Khandaker

SabiraKhatun.

11133041

2.Afroza Akhter 11133018 7.SoniaAkhter

11133052

3.SabrinaKhatun.

11133019 8.NijhumShuva

11133053

4.AshrafulIslam Apu

11133020 9.KhbirUddin

11133070

5.Prasenjit

Ghosh

11133031 10.Samirul

Islam

11133027

Welcome to Our PresentationGroup no:C


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Three types of Commercial Bank

are..1.Primary Functions.

2.SecondaryFunctions.

3.General Utility Functions.1


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a)Acceptance of deposit:The main functions of commercial banks are accepting deposits from

the public. Various sections of society, according to their needs and economiccondition, deposit their savings with the banks.

b)Granting loans and advances:The commercial banks grant loans and advances of various forms.The loan amount is paid in cash or by credit to customer account which thecustomer can draw at any time. The interest is charged for the full amount whetherhe withdraws the money from his account or not.But in case of advances,interestvaries from Bank to Bank .It is charged only on the amount withdrawn.

c)Cash credit account:It is the most significant function of the commercial banks.While

sanctioning a loan to a customer, a bank does not provide cash to the borrowerInstead it opens a deposit account from where the borrower can withdraw.


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d)Overdraft:This is an arrangement with the bankers thereby the customer isallowed to draw money over and above the balance in his/her account.This facility is given to holders of current accounts only.

e)Bill discounting:Discounting of bills by banks provide immediate finance

to sellers of goods. This helps them to carry on their business. Bankscan discount only genuine commercial bills i.e., those drawn againstsale of goods on Credit. Banks will not discount Accommodation Bills.

f)Term loan:Term loans are made when the repayment is sought to be made

in fixed,predetermined instalments.It is normally given for acquiringlong term assets I,e plant and machinery,real estate,and for creation ofinfrastructure etc.


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a.Agency services :

Agency services are those services that are rendered bycommercial banks as agents of their customers such as

;collection and payment of cheques ,collection of dividends,interest.rent,insurance premium, subcriptions etc.

b.Payment and collection of cheques:

Everyday a bank has to collect thousand of cheques drawn onother banks deposited with it through clearing houseconversly thousand of cheques dawn on it and presented byother banks are to be paid through the clearing house


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3.Bill of exchange and promissory notes:Bill of exchange and promissory note issue is the most importantfunctions of ccommercial functions.

4.Excution of Standing orders:

A standing order is an instruction an account holder gives to hisbank to pay a set ammount at regular intervals to another acount.

5.Trustee Business:Bank also act as trustees for various requirements of the corporate

,government and the general public.For example:whenever acompany wishes to issue secured debentures,it has to appoint afinancial intermediary as trustee who takes charge of the securityfor the debenture and looks after the interests of the debentureholders.


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a).Safe custody:Bankers are in the business of providing security to the money and valuables of the general public.

b).Remittance of fund:By accepting deposit and lending money commercial bank also carry out on behalf of their

customers the act of transfer of money both domestic and foreign from one place to another and this known

as remittance of fund.

c).Demand draft:It is a negotiable instrument that most commercial bank use for effecting transfer of money.

d).Telegraphic transfer:This is similar to mail transfer except that the massage is sent to another center by telegram.

e).Mail transfer: Commercial bank transfers mail from one account to another account.

f).Electronic mode:This bank offers electronic mode of transfer of funds.

g).Payment of pension:Under this facility of disbursement of pension through authorised bank available to pensioners.

h).Performance of goverment transaction:Bank act on behalf of the goverment accept its tax and non-taxreceipts.


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There are four types of Nationalized/ Governmentcontrol Bank. These are given below:

1.Sonali Bank

2.Janata Bank

3.Agrani Bank

4.Rupali Bank


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DISCUSION

After independence of the country Sonali bank emerged asthe largest and leading Nationalized Commercial Bank byproclamation ofBanks Nationalized order 1972. The bankhas been converted to a public Limited company with 100

percent of ownership of the government and startedfunctioning as Sonali bank limited from November 15, 2007taking overall assets, liabilities and business activities ofSonali bank. Sonali bank Ltd is governed by the board of

directors consisting of 11 members. The bank is headed byCEO (chief executive officers) and MD (managing director)who is well known banker and a reputed professional. Thecorporate head quarter of the bank is located at Motijheel,Dhaka, Bangladesh, the main commercial centre of the

capital.


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Capital structure TK 200000 core

Paid up capital TK 112500 core

Branches and subsidiaries:

Total number of branches1200

No of foreign branches 2

No of local branches 1198Number of rural branches 854

Number of urban branches 342


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A Brief Discussion about Janata Bank:

The second largest nationalised commercial Bank in Bangladesh underthe Bangladesh order-1972 with a paid up caital of tk 10 milliononly.Immidiately after the emergence of Bangladesh in 1971,theerstwhile united Bank limited and union Bank limited were renamed asJanta Bank.On 15thNovember,2007 the Bank has been corporatised andrenamed as Janata Bank limited.Its corporate headoffice is located at

Dhaka with with 10 divisions comprising of department 0f 38Departments.

Present Capital Structure

Authorized capital of tk 2000 million

Paid up capital of Tk 5000 millionReserve of tk 10823.01 million

Retained Surplus Tk.5167.18 million

Total asset of Tk 345233.92 million

(As on 31st December)


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Number of Branches : 883(including 4 overseasbranches at united Arab Emirates,and linked with 1202

foreign countries.

Number of Employees :More than 15 thousand

person.

Board of Dorector is headed by a Chairman

composed of 13 members.

The Bank is headed by the Chief Director & ManagingDirector.

The mission of the Bank is to-participate in in socio

economic development,provide credit credit to viable

borrowers,protect deposit & return on equity to the


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Discussion:

Agrani Bank is a stare-owned commercial Bank of Bangladesh

established in 1972.Its headquarter is situated at motijheel inDhaka,the capital city of Bangladesh.Agrani Bank Ltdstrategically located in almost all the commercial areas

throughout Bangladesh,overseas exchange house andhundreds of overseas correspondent came into being a public

limited company on May 17, 2007 with a view to take over thebusiness,assets,liabilties,rights,and obligation of the erstwhileHabib Bank Ltd.The Bank is headed by Managing director and

Chief Executive Director.


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Agrani Bank Ltd is governed by a board of

directors consisting of 13 members headedby a Chairman.The Bank has 11 offices 25divisions in Head office 62 Zonal offices and

879 Branches including 27 Corporate and40 AD(Authorized Dealer).

The authorized capital of the Tk 800 crore.


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The objectives in the mind the Bank aims at excelling qualityanddiversifiedservices.To fulfill its mission.

grani Bank ltd has its main objectives as follows

Act as a media of exchange.

To contribute to gross domestic product.

Maintain a satisfactory deposit mix.To help to grow Entrepreneurship.

Increase loan portfolio diversification and geographiacal coverage.

To help to boost economic development.

To earn profit.


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Rupali Bank Ltd. was constitutedwith the manager of 3 erstwhilecommercial banks i.e. Muslim aaaBank Ltd. Australasia Bank Ltd. and

Standard Bank Ltd. operated in thenPakistan on March 26. 1972 underthe Bangladesh Bans order 1972


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Present Capital Structure:

Authorized capital: Tk. 7000millionPaid up Capital: Tk. 1250million

Break up of paid up capital:

Government shareholding: 93.11%Private shareholding: 06.89%

Present Share Structure:Total no of share(each lot 10): 12500000


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General Banking:Rupali Bank provides all general

banking service to its clients through its514 branches & 5824 employees includingofficers respectively all over the country.These are-

Deposit schemes of different categorieslike savings, Short notice, DPS, issuance of

demand draft, pay order etc.


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Dutch-Bangla Bank Limited (DBBL) is Bangladesh'smost innovative and technologically advanced bank.DBBL stands to give the most innovative and

affordable banking products to Bangladesh.

Core Objectives

Dutch-Bangla Bank believes in its uncompromisingcommitment to fulfill its customer needs andsatisfaction and to become their first choice inbanking.


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Dutch-Bangla Bank Limited (DBBL) is a scheduled join venture private

commercial bank in Bangladesh. The bank is established jointly by

local Bangladeshi parties spearheaded by M Sahabuddin Ahmed

(Founder & Chairman) and the Dutch company FMO. DBBL was

established under the Bank Companies Act 1991 and incorporated as a

public limited company under the Companies Act 1994 in Bangladesh.

In June 1996, DBBL started its formal operation in banking sector.

DBBL is listed with both the stock exchanges in Bangladesh, the

Dhaka Stock Exchange Limited (DSE) and the Chittagong Stock

Exchange Limited (CSE).


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DBBL is given some facilities which are the following:

ATM Networks:(With more than 1000 of ATM booths allover the country)

Fast Track (In 2010, Dutch Bangla Bank Limited introduced"Fast Track" in the country which is the first of its kind inthe country that is like a mini branch)

Internet Payment Gateway(Dutch-Bangla Bank Limitedintroduced Internet Payment Gateway to facilitates E-

commerce in Bangladesh)

Mobile Banking (DBBL who introduced mobile bankingservice to bring poor people from remote are

under smart banking service)


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INTRODUCTIONGrameen Bank is a noble peace prize winingmicrofinance organization in Bangladesh. Actuallythe concept of such organization had come to

mind of Prof. Dr.Yunus since 1974.But it tookanother nine years to form this bank formally. Thename of this bank is actually originated from thebangla word Gram.

OBJECTIVE

The prime objective of this bank is to make self-reliable rural people especially village women.


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Type: Private state owned company

Head office: Mirpur Two, Dhaka

1216, BangladeshEmployees: 22149 july 2011

Total Branch: 2565

Revenue:176.67 million USD 2010.

Total asset:1567.46 million USD 2010.

Number of body of directors:09


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There is no legal instrument between theGrameen bank and its borrowers.

Only Grameen is the lawyer free bank in theworld.

Only Grameen Bank provides loan to landlesspeople without any collateral.

Over 80 percent of the ownership is women.

There is no donor of Grameen bank. The member of this bank is the owner of this

bank.

The activities of this bank are village oriented.


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Bangladesh is one of the leading Muslimcountries in the world. The people in thiscountry also want to fashion and design

their lives with the percept of Islam. Keepingup with this concept IBBL set out itsbanking practice in 1983.The prime objectiveof this bank is to do banking business on thebasis of Islamic principle and thus get rid ofpeople of Bangladesh from the generalbanking practice.


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Type: Private bankHead corporate branch: Mothijel, Dhaka

Sharing: Local 58.23%

Foreign 41.77%Profit-loss basis: IBBL is the first kind ofbank in south-Asia which is operated on the

basis of profit-loss system instead of generalsystem of interest.


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Number of total staffs: 11,465Number of the total branch: 276

Number of body of directors: 09Donor & advisor: Royalpersonalities of the Middle-East,Islamic Development Bank, AsianDevelopment Bank


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functions of commercial bank & nationalized bank

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