report bcbl
TRANSCRIPT
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“Overall Banking Performance of Bangladesh Commerce Bank Ltd”
Internship Report on
“Overall Banking Performance of Bangladesh Commerce Bank Ltd”
SUBMITTED TO
Annis Uddin Ahamed
Vice President
Bangladesh Commerce Bank Limited
Zigatola Branch
SUBMITTED BY
Tanvir Ahamed
Bachelor of Business Administration
(Major in Finance)
ID NO: 082-070-025
Presidency University
Date of Submission: 22 December, 2011
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Letter of Transmittal
22 December, 2011
To Annis Uddin AhamedVice President Bangladesh Commerce Bank Limited
Sub: Submission of Internship Report.
Dear Sir,
With immense pleasure, I am submitting my internship report on “Overall Banking Performance of Bangladesh Commerce Bank Limited”, which was assigned to me as a part of my BBA program. I have truly enjoyed my three months internship program with Bangladesh Commerce Bank Ltd., Zigatola Branch and highly appreciate their co-operation in this regard. Despite some limitation, I tried my best to make the report a complete one.
May I, therefore, pray and hope that you would be kind enough to accept my internship report and oblige there by.
Yours Sincerely,
Tanvir AhamedBachelor of Business AdministrationPresidency University
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Interns Declaration
I am Tanvir Ahamed a student of Bachelor of Business Administration,(Major in Finance) from
Presidency University, hereby I declare that the internship report titled “Overall Banking Performance
of Bangladesh Commerce Bank Limited” is prepared after the completion of my internship at
Bangladesh Commerce Bank Limited, Zigatola Branch, 25/1(1st Floor), Zigatola, Dhanmondi, Dhaka-
1209. I also declare that the internship report is prepared for academic purpose only and is my original
work under the extensive supervision and guidance of Md. Didarul Alam (Executive Officer), Bangladesh
Commerce Bank Limited and Alamgir Hossain (Lecturer) of Moazzam Hossain School of Business,
Presidency University.
Sincerely yours
TANVIR AHAMED
Student of Moazzam Hossain School of Business
(Major in Finance)
ID: 082-070-025
Bachelor of Business Administration
Presidency University
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Table of Content
Content Page No.
Introduction 1-3
Objective of the Study 1
Scope of the study 2
Methodology 2
Sources of Data 2
Limitation of the study 3
Organizational overview 4-10
History of Bangladesh Commerce Bank Ltd 4-5
About Bangladesh commerce Bank Ltd 6
Present Status of BCBL 6-9
Vision of Bangladesh commerce Bank Ltd 10
Mission of Bangladesh commerce Bank Ltd 10
General Banking of BCBL 11-50
Introduction 11
General Banking 11-12
Bill Collection 12-13
Account Opening Section 13
Classification of Customer 14
Different types of A/C of BCBL 14
Documents required for opening new account 15
Account opening procedure 15
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Precautionary Measures of A/C Opening 16
Formalities for opening Current and STD A/C
16
Formalities for opening Private foreign currency A/C
17
Issue of Duplicate cheque book 18
Formalities maintained for closing an account 18-19
Interest rate on deposit 19-21
Learning of This Section 22
Clearing Section 23
Local Remittance Section 23-24
Telegraphic Transfer (TT) 24-25
Demand Draft ( DD ) 26-31
Pay Order 31-33
Learning of This Section 33-34
Cash 34-
Function of cash department 34
Cash Received tools 34-35
Cash Receiving Procedure 36
Cash Payment tools 36
Cash Payment Procedure 36-37
Accounts Department 37-38
Loans and Advances
Introduction 39
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Manager’s Concern 39
How to locate purpose 39
How to locate security 39-40
How to locate borrower 40-41
Advance Secured and Unsecured 41
Function of Advance Department 42
Types of Loan 43-49
Process of Loan 49-50
Any Branch Banking 51
Overall Performance of BCBL 52-55
Deposits and other accounts 52
Asset Portfolio 53
Asset 53
Types of Deposit 54
Loans and Advances 54-55
SWOT Analysis 56-57
Findings 58
Recommendation 59-60
Conclusion 61
Acronym 62
Bibliography 63
Appendix 64-85
List of illustration
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Serial No. Content Page No.
Figure
1 Organization Structure 7
2 General banking function 12
3 Local remittance types 24
4 Procedure of Issuing TT 25
5 Procedure of Issuing DD 27
6 Cash receiving procedure 35
7 Cash payment procedure 36
8 Loans types 43
9 Overall deposits of BCBL 52
10 Asset portfolio of BCBL 53
11 Asset of BCBL 53
12 Different type deposits of BCBL 54
13 Loan and advances of BCBL 54
14 Loan and advances matrix of BCBL 55
Table
1 Types of different deposit interest rate 20
2 Interest rate of different schemes 21
3 Interest rate of Monthly Saving Scheme 21
4 Interest rate of commercial loan 44
5 Interest rate of Term loan 46
6 Interest rate of Working Capital loan 46
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7 Interest rate of agricultural Loan 46
8 Interest rate of house building loan 47
9 Interest rate of different types of loan 48
10 Interest rate of staff loan 49
Acknowledgement
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First of all I am highly grateful to almighty Allah who gave me the power and blesses to complete this
report within a short period successfully.
I would like to express my gratitude to all the people that were involved both directly and indirectly in
the preparation of this report. I apologize to the people whose names that I have not mentioned, and their
contribution is highly appreciated by me.
Then I express my deep gratefulness to my academic supervisor Mr. Alamgir Hossain – Lecturer,
Business Faculty, Presidency University – for guiding me and for giving me the opportunity to initiate
this report. More specifically, I would like to thank his for imparting his time and wisdom.
I want to thank all the officials of Bangladesh Commerce Bank Limited that were involved. I would
especially like to thank Mr. Anis Uddin Ahamed (VP) and Mr. Didarul Alam (EO) of Zigatola Branch
for giving me time and sharing their thoughts and insights regarding their bank as a whole. I would like
to thank them for giving me the required information to commence this report and for providing the
permission to do the required research work.
I also would like to give my gratitude to a very important person who has made it all happen for me at
Bangladesh Commerce Bank Limited - Mr. S.A. Chowdhury (Managing Director).
Here again I have to mention who receive me as a member of their Banking family in introduce with me
whom I worked last three months. I would like to express my deep sense of gratitude and thank to all
officials and members for all their continuous guidance valuable knowledge and suggestion during my
“Internship Program”.
Executive Summary
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The report is a prepared as part of practical orientation of BBA program a description of all
activities done by Bangladesh Commerce Bank Ltd., Zigatola branch. The report is lively
narration of various banking activities like General Banking, loans and advance management and
any branch banking service. As a conventional bank branch it has a general banking section
where the primary task of deposit collection, maintenance of accounts, cash and all local services
are done. It performs the job of fund management on behalf of the whole bank. Other main duty
of the department is maintenance of the accounts and dealing with the clearinghouse. The loans
and advance section is in charge of proper disbursement of the funds to productive as well as
profitable ventures. Any branch banking service is unique feature of that bank. The customers
who have an account holder of that bank, they will transact any branch and enjoying the
mobilization of service. In this age when management requires proper flow of accurate
information to run an organization successfully than the banks way of information handling is
quite outdated from the view point of sophisticated management information science. Facts and
figures of the branch clearly indicate that the overall banking performance of Bangladesh
Commerce Bank Limited is as well run and the trends of graphs show a sign of improvement and
expansion of activity in all spears of banking.
Introduction
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A bank is a financial institution licensed by a government. Its primary activities include
borrowing and lending money. Many other financial activities were allowed over time.
All over the world the element of banking has been changing speedily due to technological
innovation and globalization. Banking in Bangladesh has to keep pace with the global change.
Now banks must complete in the market place both with local institution as well as foreign ones.
To survive and thrive in such a competitive banking world, two important requirements are
development of appropriate financial infrastructure by the central Bank and development of
“Professionalism” in the sense of developing and appropriate manpower structure and its
expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of
banking studies is not sufficient. An academic course of the study has a great value when it has
practical application in real life situation.
Objective of the Study
General Objectives
This study is intended for providing me invaluable practical knowledge about banking operation
system in Bangladesh. The prime objective of the study is to examine the performance of
Bangladesh Commerce Bank Ltd.
Specific Objective
To have an exposure on the banking environment of Bangladesh.
To review the consumer banking service and operating system of Bangladesh Commerce
Bank Ltd.
To evaluate the factors affecting performance of the Bank.
To suggest the better ways of enhancing the performance of the Bank.
To make myself confident and active in future to finger my job.
Scope of the study
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This report covers the organizational overview of the Bangladesh Commerce Bank Ltd,
Management and Organizational Structure, functions performed by the Bangladesh Commerce
Bank Ltd. It also covers overview of the general banking, identification of problems regarding
general banking, of The Bangladesh Commerce Bank Ltd. Zigatola Branch.
Methodology
While conducting the study, sources were explored for primary information and data. But hardly
any updated data could be found. In the absence of updated information or data dependence on
secondary has been inevitable. However, wherever possibly primary data has been used. Data
were also collected by interviewing the responsible officers and from some documents &
statements printed by the bank and the website of BCBL.
There have been used some statistical tools and graphical representation to find out different
types of analytical results and interpretations.
Sources of Data
The following sources have been used for the purpose of gathering and collecting data as
required.
Primary data
1. Practical desk work.
2. Face to face conversation with the officers and clients.
3. Official record of BCBL.
4. Data collection of own supervision.
Secondary Data
1. Annual report of BCBL.
2. Official files and folders, working papers, published and unpublished documents.
3. Website.
Limitation of the study
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The limitation of the study is defined by the extensive of the facts covered by the study and those
that left out. However, these limitations can be presented in the following lines:
The first limitation is that I failed to sketch the complete picture of the Bangladesh
Commerce Bank’s activities at the period of my internship programmed. So I tried my
best to focus on what I have done and also tried to make it consistent with other part of
the report.
The second limitation is the lack of intellectual thought and analytical ability to make in a
perfect one.
I have to offset with quality due to time constraint, which apparently seems to be the
most severe limitation.
Another limitation of this report in non-availability of the most recent data & information
of different activities of Bangladesh Commerce Bank policy of not disclosing some data
& information for some reasons, which could be very much useful.
In spite of all these limitations, I have tried to put the best effort as far as possible.
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History of Bangladesh Commerce Bank Ltd
Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a banking
company, it started banking operations on 16 September 1999 with an authorized and paid up
capital of Tk 2,000 million and Tk 920 million respectively. The share of the government of
Bangladesh in the bank's paid up capital is Tk 300 million while depositors of the former
Bangladesh Commerce and Investment Limited (BCIL) contributed Tk 520 million. The balance
of Tk 100 million is to be subscribed by banks and financial institutions under guidance and
supervision by Bangladesh bank.
The former BCIL was set up on 27 January 1986 as a non-bank financial institution. It continued
its business till April 1992. Consequent upon its liquidity crisis, Bangladesh Bank suspended its
operations in April 1992. As a result, the investors of the company suffered a lot and its
employees became jobless. Both the depositors and the jobless employees launched a movement
for reopening the company in some form or other and demanded return of their money and dues.
With a view to safeguarding the interest of the depositors, employees and the general public, and
to protecting the banking system itself from contagious effects of bank failures, the government
of Bangladesh established the Bangladesh Commerce Bank on the ashes of the collapsed BCIL.
Subsequently, the government on 8 February 1998 constituted a 10-member board of directors to
organize and transform BCIL into BCBL and to administer the affairs of the bank. The 24
branches of BCIL were reopened as full-fledged branches of BCBL. The broad objective of the
bank is to carry out all kinds of commercial banking activities and to respond quickly to the
changing demands for modern banking products.
In its three months of operations in 1999 starting on 16 September and ending on 31 December,
BCBL had mobilized deposits of Tk 83 million. To augment its deposit collection further, BCBL
introduced a number of deposit schemes suited to the needs of all classes of people in society.
These schemes include a) Monthly Profit Based Deposit Scheme, b) Pension Saving Scheme, c)
Interest Free Deposit and Loan Scheme, d) Consumers' Credit Scheme, and e) Money Plantation
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Against Saving Certificates. It has also offered competitive rates of interest on its deposit
holdings, which varied between 7.75% and 12% since the inception of its operations through
May 2000. Total deposits stood at Tk 1,294.2 million on 31 December 2000, when its gross
loans and advances amounted to Tk 1,311 million.
The first priority of the bank in 1999 and 2000 was the recovery of the past loans of the BCIL. It
has managed to recover Tk 523.3 million in cash and Tk 1,788 million by adjustment against
past liabilities. The bank is overburdened with the liabilities and the non-performing classified
loans of BCIL. The bank also suffered losses in the years 1999 and 2000 and was not able to
maintain necessary provisions for classified loans. Investment of the bank has increased from Tk
20 million in 1999 to Tk 95 million in 2000, mainly in government Treasury bills. Because of the
huge stuck up loans inherited from the BCIL, the bank's credit-deposit ratio stood at 101.30%.
Total assets of BCBL, including the Tk 1,423.99 million of former BCIL stood at Tk 3,763.7
million on 31 December 2000. The bank's off-balance-sheet reserve was only Tk 95.8 million, a
figure which has contributed little to the increase of its asset-mix. In 2000, BCBL maintained
liquid assets of Tk 1,052.6, a sum hardly sufficient to meet its accumulated short-term/current
obligations. On the other hand, statutory liquid assets of the bank were 15.08% in 2000, which is
below the 20% SLR requirement envisaged by Bangladesh Bank. Because BCBL had absorbed
huge amount of liabilities and non-performing assets of BCIL, it was not possible for the bank to
make net profits during the short period of its existence in the new set-up.
The bank is managed by a 9-member board of directors appointed by the government. A total of
590 officers and other staff work in the head office and the 27 branches of the bank. It has
inherited a training institute from BCIL. This institute is being reorganized to provide training to
its employees in modern banking services.
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About Bangladesh Commerce Bank Ltd
Bangladesh Commerce Bank Limited is one of the potential commercial bank of Bangladesh
with Private-Government share. BCBL is consistently supporting the economic activates of the
country since its inception in 1998. The bank covers all the areas of corporate/commercial,
retail/personal and SME banking business.
Bangladesh Commerce Bank Limited is undergoing major restructuring to modernize its systems
and process for sustainable growth.
Bangladesh Commerce Bank Limited (BCBL) was established by the act no. 12 of 1997, passed
by the Parliament of the People’s Republic of Bangladesh. Subsequently on February 8, 1998 as
per clause 7(7) of act 12 of 1997, the Government constituted an 11 member Board of Directors
to organize BCBL and administer the affairs of the Bank in accordance with the Act.
Bangladesh Commerce Bank Limited was incorporated on June 1, 1998 as a public limited
company under the company act 1994, Banking Companies act 1991 and in accordance with the
act no. 12 of 1997. The Bank formally started operation from September 16, 1999 with the
slogan of “A People’s Bank with a Mission”.
Present Status of BCBL
BCBL is one of the largest private sectors Bank in Bangladesh with years of experience.
Adaptations of modern technology both in terms of equipment of banking practice ensure
efficient service to clients.
(a) Capital structure of BCBL
The bank was incorporated as a public limited company under the companies’ act 1994. The
authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively. The share of
the government of Bangladesh in the bank's paid up capital is Tk 300 million while depositors of
the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk 520 million.
The balance of Tk 100 million is to be subscribed by banks and financial institutions under
guidance and supervision by Bangladesh Bank.
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(b) Hierarchy of position in BCBL
Figure 1: Organization Structure
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(c) Information Technology in Automation
All the 27 branches have been running successfully with the in-house developed software. The
bank has entered into the internet world through its website www.bcblbd.com. Polaris Software
(POLS.BO), a leading global Financial Technology Company, Sonali Bank Ltd., the largest
Nationalized Commercial Bank in Bangladesh and Bangladesh Commerce Bank Ltd. (BCBL)
signed a Memorandum of understand to form a Joint Venture Company Sonali Polaris Financial
Technology Ltd (SPFTL) where BCBL will hold a 10% stake in the new company.Through
signing this contract, BCBL has chosen Intellect Core Banking Solution (CBS) to replace their
existing solutions. All the branches of Bangladesh commerce bank ltd. are use FLORA banking
software.
(d) Objectives & Targets
1. Offering maximum services to the clients and shareholders as per rules.
2. Providing services by diversification to the door step of people in the economic sector.
3. Ensuring maximum utilization of professional manpower by developing skill &
creativeness.
4. Creating savings attitude among various classes of people.
5. Increasing investment for keeping the market economy operative.
6. Earning confidence of all concerned by easing foreign trade and international transaction.
7. Assessment of consumer need and provide short term and long term finance on the basis
of real need.
8. Proper maintenance of Bank’s resources through appropriate investment and active
participation of various welfare programs of the country.
9. Activate capital market by more participation in the capital market.
10. Involves customers with modern banking through proper usage of modern information
technology.
11. Providing best services to the customers to establishing firm discipline in Bank
management and building long term relation.
12. Achievement of economic growth through various socio-economic activities.
13. Building image of the Bank home and abroad.
14. Upgrading socio-economic aspects of Bangladesh financing Agro-based Prakalpa.
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(e) Corporate Information at a glance
Registered Name: Bangladesh Commerce Bank Ltd. (BCBL)
Date of Registration: 01.06.1998 (As per the Company Act. 1994, the
Bank Company Act. 1991 & Act 12 of 1997)
Inauguration of Zigatola Branch: September 16, 1999
Registered Head office: 19, Rajuk Avenue
Taranga Complex
Motijheel C/A, Dhaka – 1000
Phone No: 9559831-2, 9571581, and 9563757
Fax No: 88-02-9568218
Telex: 642557 BCBL BJ,
E-mail: [email protected]
Web site: www.bcblbd.com
SWIFT: BCBLBDDH
Date of incorporation: 1 June 1998
Authorized Capital: 200.00 Crore
Paid up capital: 105.79 Crore
Number of Branches: 27(Twenty Seven)
Chairman: Mr. A.Q. Siddiqui
Managing Director: S. A. Chowdhury
Auditor: HODA VASI CHOWDHURY & CO.
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Vision of Bangladesh Commerce Bank Ltd
Become a bank of first choice by the customers with meaningful contributions to the society.
Mission of Bangladesh Commerce Bank Ltd
Bangladesh Commerce Bank Limited is committed to fulfill its customer’s needs and become
their first choice in banking so that a sustainable growth, reasonable return and contribution to
the socio-economic development of the country can be ensured with a motivated and
professional work-force.
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General Banking of Bangladesh Commerce Bank Ltd
Introduction
BCBL survive and succeed in such a competitive banking world, two important requirements are
development of appropriate financial infrastructure by the central bank and development of
“professionalism” in the sense of developing an appropriate manpower structure and its expertise
and experience.
BCBL has contributed in the economy of the country through their dedicated services, business
partnership and customer care over the last twelve years. They have seen enormous changes over
the period and have continued to keep on adopting to changes their journey ahead.
They has been widely acclaimed by the business communicate from small entrepreneurs to large
traders and industrial conglomerates. BCBL conducts all types of commercial banking activities.
The bank involve in most of the areas of commercial banking operation. BCBL has acted as the
lead arranger in raising term loan for a number of projects under syndicate finance and also
participate in some case under such financing arrangement. They also providing personal credit,
service related to local and foreign remittances and several other products.
BCBL entered the market at a time when economic policy environment of the country is poised
for higher levels of business activities and growth. The prevailing macroeconomic management
and government’s determination to carry on reforms in the banking sector provide a supporting
and encouraging environment.
General Banking
General banking is the starting point of all the banking operations. It is the department, which
provides day-to-day services to the customers. Every day it receives deposits from the customers
and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues
bank drafts and pay orders etc. Since bank is confined to provide the services every day, general
banking is also known as ‘retail banking’.
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According to World Bank, the general people understand the depositing and withdrawal of
money and credit financing. But Bank performs numerous types of services. To deal these
services bank has to maintain many register/ ledger and documents. Some different jobs that
waive the General banking have shown in the following diagram.
Figure 2 – General banking function
Bill Collection
Bangladesh commerce bank ltd. Zigatola branch also collect DESA, WASA, TNT, and Gas bill.
People of Zigatola, Hazaribag, Tenarimor and Rayerbazar area pay their DESA, WASA, TNT,
and Gas bill from that branch.
How to collect Bill
Bangladesh commerce bank ltd. Zigatola branch collect the DESA, WASA, TNT, and Gas bill
through cash counter from 10 a.m. to 1 p.m. When cash officer collect those bill they are
attached 5 TK. revenue stamp to DESA, WASA, and Gas bill in order of government.
Arrange the Bill
The Cash officer of Zigatola Branch when collect the bill they are serially put the scroll number
on that bill to the purpose of security.
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Posted the Bill
After collect the bill those bill were posted in speed shit and print 2 copy, one copy kept in office
and another copy send to the government office.
Account Opening Section
When a customer want to open a deposit account in bank, he/she will have to go the A/C opening
section to know the rules and regulations for opening account and to have the set of documents
required. Since BCBL is an authorized dealer it can open deposit A/Cs denominated both in Taka
and approved foreign currencies.
Deposits are like raw materials out of which credits are created. Deposit accounts are one of the
important sources of funds. In order to attract customers the banks offer different facilities to
various types of account holders. Competition in accepting deposits takes two forms:
(a) Improvement in customer service
(b) Offer a higher rate of interest.
In our country PCBs and foreign banks are appreciated to attract deposit because of their
superior customer services. BCBL Zigatola office branch with its traditions customer service
approaches faces difficulties to draw attention of new customers.
Main functions of account opening are given below:
To give answers to the queries regarding account opening
To supply the appropriate type of account opening form
To put a/c number from a computerized sheet on advice of new account
To input date into computer from a/c opening form.
To maintain and update the a/c opening file for different types of accounts.
To maintain a register for cash type of recording details of a/c opening
To supply deposit slip books and cheque book on requisition
To act on request for closing and transferring of deposit a/c
To act on request for closing and transferring of deposit a/c
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Classification of Customer
a) Individual (personal)
b) Proprietorship (Sole traders)
c) Partnership firms (Register or Unregistered)
d) Joint Stock Companies ( Private Limited and Public Limited )
e) Municipalities/Municipal Corporations/Local Bodies etc.
f) Clubs / Societies / Associations /School / Colleges / Universities etc.
g) Executors /Administrators
h) Trustees
i) Illiterate persons
j) Constituted Attorney
k) Wage Earners
Different types of A/C of BCBL Zigatola Branch
1. Current A/C: Interest free and generously withdrawal.
2. Saving Bank A/C: Interest bearing and checkable with some restriction
3. Short Term deposit: Usually interest bearing and with draw able on short notice.
4. Fixed deposit: Interest bearing and definite period like one year or six month.
5. Non Resident foreign currency deposit: All non residents of Bangladesh can open
this interest bearing account in the form of term deposit with a minimum amount of
$1000 or equivalent.
6. Private Foreign Currency A/C: Bangladeshi National residing abroad or foreign
nationals may open this a/c with deposit mode from inward.
7. Convertible Take Amount: A type of non-interest bearing current a/c designed
especially for foreigners living here.
8. Private foreign Currency A/C: Bangladeshi nationals residing abroad or foreign
nationals may open this a/c with deposit mode from inward.
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Documents required for opening new account
1. Documents Common for all types of Account & Customers
Advise of New Account
Specimen signature cards
Account Opening Agreement Form
Photographs of Account Holder
Deposit Slips Book
Cheque book Requisition slips
Letter of mandate is required where necessary.
Account opening procedure
a. Applying in a printed application in a certain stipulated form printed by the bank itself.
b. Supply a set of printed forms required for opening the account which will normally
include
i) Advise of new Account
ii) Specimen Signature Cards
iii) Account Agreement
iv) Deposit slip Book
v) Cheque Book Requisition slip
b. The account should properly introduced by any one of the following
i) An existing Current Account holder of the bank
ii) Officials of the Bank not below the rank of an Assistant officer
iii) A respectable person of the locality well known to the Manager or Sub-
Manger of the Branch concerned.
c. A number of photographs which must be duly attested by the introducer in front of the
manager or responsible officer. The signature of the introducer must be attested. After
being scrutinize the application and the manager or authorized officer may give his
consent to open the account.
d. A package with deposit book, cheque book with a unique A/C No. given to the Customer
maintaining the A/C opening register book.
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Precautionary Measures of A/C Opening
a. Soon after the opening of a new Account a letter of Thanks should be sent to the
introducer.
b. A letter of thanks as per prescribed should also be sent to the account holder immediately
upon opening the account, under registered post with a/c for verification of postal address
as well as genuineness of the Account holder.
c. In case of a new account is opened a proprietorship / partnership firm, having local
business address, a responsible officer of the branch will inform the firm to obtain the
confidential report on the firm.
Formalities for opening Current A/C and STD A/C
These accounts are meant for business firms and corporate bodies. Initial deposit requirement is
Tk 5000 in addition to common documents required to open a saving a/c following additional
documents will be required for depending upon the nature of the organization.
Joint Account of two or more persons
Mandate for Operation of Account: A clear authority by all the joint A/C holders containing
instructions as to who will operate the account and how the account is to be operated should be
obtained. The mandate should mention the name of the persons authorized to draw check. In case
of death, insanity, insolvency of one or more of the joint a/c holders, the authority will cease to
operate:
For sole traders
i) Trade license
ii) A certificate with tax identification number from income tax authority
iii) Seal
iv) In case of current account an agreement to accept all responsibilities for all
over draws, interest cost and expenditures.
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For Partnership firms
i) Trade license
ii) Notarized deed of partnership
iii) A mended in agreement form regarding operation of the account signed by the
entire partnership firm
iv) Sale/ Stump of the firms
v) 2 copy photo of all partners
vi) National ID card photocopy for all partners.
For Private and Public Limited Companies
i) Memorandum and Articles of association
ii) Certificate of incorporation
iii) Certificate of commencement of business if it’s Public limited
iv) Copy of board resolution to open a/c certificate by the chairman and secretary
v) Power of attorney to operate a/c in favor of any one or more of directors.
vi) Balance sheet and income statement
vii) List of Directors and their address and chairman certificate.
Formalities for opening Private foreign currency A/C
Foreign Currency account may be opened in US dollar, Pound Sterling, Douche Mark and
Japanese Yen. Credit may be made to this A/C against inward remittance from abroad. Usually
this a/c operated like a current a/c but no checkbook are issued against his a/c. Withdrawals may
be made through withdrawals slips. Interest may be paid on this a/c if it is maintained in the form
of term deposit for a minimum of 90 Day’s Bangladeshis’ living abroad can open even without
initial deposit. A nominee can be appointed.
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Documents required
When an eligible person is interested to open an F/C account his passport is to be checked and
signature verified. When he is staying abroad his signature is to be verified and attested by –
i) Bangladeshi embassy on that country
ii) His banker in this country
iii) Notary public of that country
Following documents are needed to:
i) Photocopy of 1st 4 pages of passport
ii) Photocopy of visa and work permit
iii) Nominees photo and account no.
iv) Declaration of source of income.
v) National ID card photocopy for both a/c holder& nominee.
Issue of Duplicate cheque book
Duplicate cheque book in lieu of lost one should be issued only when A/C holder personally
approaches the bank with an application. Fresh Cheque Book in lieu of lost one should be issued
after verification of the signature of the Account holder from the Specimen signature card and on
realization of required excise duty only with prior approval of manager of the branch. Cheque
series number of the new cheque book should be recorded in ledger card signature card as usual.
Series number of lost cheque book should be recorded in the stop payment register and caution
should be exercised to guard against fraudulent payment.
Formalities maintained for closing an account
a) The customer may inform the bank in writing of his/her intension to close the account.
b) The customer has to apply to the branch in charge for closing the account. Then the in
charge will remark on the account closing application for closing the account.
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c) By drawing a cheque of the whole amount and a nil balance confirmation to be taken
from the account holder.
d) Recover the unused cheque leaves and enter into the “Broken cheque book register”
e) Remove the account opening form, specimen signature card and all other papers relating
to the closed account.
f) Remarks of account closing at the ledger folio should be authenticated by the manager or
supervising officials
g) The banker may itself ask the customer to close the account when the banker finds that
the account is not been operated for a long lime.
h) If the account is not operated upon for 6 months then the banker will try to do the
bilateral communication with the account holder. But if the banker does not get any
response from the account holder then the account becomes “Dormant” account.
i) If the is not the operated upon for 2 years then the account becomes “inoperative”
account.
j) A new register for unclaimed deposit account will be maintained called “unclaimed
deposit account.
k) For withdrawal at any amount from tat account, permission from head office or
controlling office wins is required.
Interest rate on deposits & Schemes
Interest rate different types of deposit as prescribed by BCBL head office from time to time
irrespective of size of deposit. In the below different type of deposits and schemes interest rate
will be shown-
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Types o Interest Interest rate
1. Savings Deposit (SD)
i) Special rate for wage earners, housewives & gmts. Workers (For non Cheq.
A/C)
ii) Special rate for wage earners, housewives & gmts. Workers (For Cheq.
A/C)
iii) Rural areas
iv) Urban areas (Cities & Other municipalities)
8.00%
7.50%
7.50%
7.25%
2. Special Notice Deposit (SND)
i) Below 1.00 crore
ii) From 1.00 crore to 25.00 crores
iii) From 25.00 crore s to 50.00 crores
iv) From 50.00 crores to 100.00 crores
v) 100.00 crores and above
.
4.00%
4.25%
4.50%
5.00%
6.00%
3. Fixed Deposit Receipt (FDR)
i) 1 month to 2 months tenure
ii) 3 months to 1 year tenure
iii) 3 months to 1 year tenure (1.00 crore to 3.00 crore)
iv) 3 months to 1 year tenure (3.00 crore and above)
v) 1 year and above tenure (3.00 crore and above)
.
11.00%
12.00%
12.50%
13.00%
12.00%
4. Pension Savings Scheme 9.00%
Table 2- Interest rate of different schemes
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Table 1- Types of different deposit interest rate
Scheme DepositsScheme Deposit Tenure Installment
AmountAmount Payable at Maturity Nominal Interest Rate
(Monthly)Double Benefit Scheme
6 Years Any Amount Double 9.28%
Triple Benefit Scheme
10 Years Any Amount Triple 9.45%
Lakhpati Deposit Scheme
5 Years 1,320.00 1,00,000.00 9.17%10 Years 515.00 1,00,000.00 9.06%
Millionaire Deposit Scheme
10 Years 5,085.00 10,00,000.00 9.29%15 Years 2,530.00 10,00,000.00 9.49%
Kotipoti Deposit Scheme
15 Years 25,960.00 1,00,00,000.00 9.20%20 Years 14,230.00 1,00,00,000.00 9.40%
Marriage Deposit Scheme
12 Years 1,000.00 2,60,410.00 9.15%18 Years 1,000.00 5,57,860.00 9.35%
Education Savings Scheme
8 Years 500.00 69,620.00 8.90%12 Years 500.00 1,28,855.00 9.00%
Monthly Saving Scheme
Amount to be deposited monthly
Payable at maturity
Payable at maturity
Payable at maturity
Payable at maturity
3 Years 5 Years 7 Years 10 Years
500 21,500 41,000 65,500 1,15,000
1000 43,000 82,000 1,31,000 2,30,000
5000 2,15,000 4,10,000 6,55,000 11,50,000
10000 4,30,000 8,20,000 13,10,000 23,00,000
20000 8,60,000 16,40,000 26,20,000 46,00,000
Table 3- Interest rate of Monthly Saving Scheme
Learning of This Section
The signature of the account holder use in all banking activities.
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The customer may appoint nominee who can handle his account in case of holder’s death
even in special circumstances with the permission of the account holder.
Present and permanent address with father’s or husband’s name of the concerned account
holder to be recorded very carefully.
The type of account, the prospective Customer wishes to open should be determined.
In case of proprietorship or partnership business account proper trade license in the name
of business firm should be obtained.
The required Account Number for the Account from the Account Opening register should
be obtained.
Signature and a/c number of the introducer and gets the signature properly verified by an
authorized officer of the bank.
The deposit slip properly filled in and signed by the customer in duplicate should be
collected.
Have to place the signature cards, advice of new account, a copy of deposit slip
photographs and other necessary papers/documents etc in a file and obtain approval of
the authorized officer for opening the new account.
Get each signature of the Customer/Introducer on the Advice of New a/c and on the
signature cards admitted by the authorized officer of the Bank using a rubber stamp.
When delivering the cheque book account number, name of customer branch seal on each
leaf of the cheque book have to check carefully.
Clearing Section
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The Cheque Clearing Section of BCBL Zigatola office branch sends Inter Branch Debit Advice
(IBDA) to the Head office on the receiving day of the instruments. The main Branch takes those
instruments to the Clearing House on the following day. If the instrument is dishonored, Head
office of BCBL sends IBDA to the BCBL, Zigatola Office branch. The total procedure takes
three days if everything goes orderly.
The Cheque Clearing Section of BCBL, Zigatola Office branch sends Outward Bills for
Collection (OBC) to the concerned Paying Bank to get Inter Branch Credit Advice (IBCA) from
the paying Bank. If the instruments are dishonored by the Paying Bank, the Paying Bank returns
it to the BCBL, Local Officer Branch describing why the instruments are dishonored. The
procedure takes around a week.
The Cheque Clearing Section of BCBL, Zigatola office branch sends Outward Bills for
Collection (OBC) to the concerned paying Branch to get Inter Branch Credit Advice (IBCA)
from the paying returns it to the BCBL, Local Office branch describing why the instrument is
dishonored.
Local Remittance Section
Local Remittance is used to transfer of funds denominated in Bangladesh Taka between banks
within the country. It is an order from the Issuing branch to the Drawee Bank/ Branch for
payment of a certain sum of money to the beneficiary. The payment instruction is sent by Telex /
Telegram and funds are paid to the beneficiary through his account maintained with the Drawee
branch or through a pay order if no a/c is maintained with the drawee branch. The cash
department does remittance of cash. Instruments of local remittances at BCBL branches are
follows
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Figure 3 – Local remittance types
Telegraphic Transfer (TT)
Telegraphic Transfer is a quick mode of remitting funds over telex or Telegram. Now this term
has used as Telephonic Transfer also which is faster than previous one for money transfer.
Following points have to consider for the TT
1. On receipt of T.T payment instructions the following entries are passed by the Drawee
branch if the T.T is found to be correct on verification of Test Number.
i) Dr. BCBL General A/C
Cr Remittance Awaiting Disposal- T.T Payable A/c
ii) Dr Remittance Awaiting Disposal-T.T Payable A/c
Cr Client’s Account P.O. A/C.
If the beneficiary does not maintain any a/c with the Drawee Branch a P.O is issued in
favor of the payee and sent to his banker/local address as stated.
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2. Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.T are
to be properly recorded in this Register duly authenticated. A separate type of T.T
confirmatory advice is sent to the Drawee branch on the same day. On receipt of the T.T
Confirmatory advice/confirmation copy of telegram from the issuing branch, the
particulars of the T.T are verified with reference to particulars already recoded in the T.T
payable Register.
The Confirmatory advice are kept attached with the relative Ticket No further responding entry
is required to be passed on receipt of such confirmation copy.
On payment of T.T the particulars are to be incorporated in the Extracts Responding Debit
entries as usual as usual and sent to HORC.
Procedure of Issuing TT
Figure 4 - Procedure of Issuing TT
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Customers fill up a printed
application form.
Cash Dept. receive cash with commission @ 15% telex charge Tk. 40 and issue debit ticket to L/R
On receiving debit ticket L.R dept. make entries into the register & issue TT and issuing credit advice in triplicate
LR dept prepares telex massage in duplicate for drawee branch and arrange to send the same through test key Dept.
Demand Draft (DD)
Demand Draft is an instrument containing an order of the Issuing branch upon another branch
known as Drawee branch, for payment of a certain sum of money to the payee or to his order on
demand by the beneficiary presenting the draft itself.
Precautions for Demand Draft
1. Get the application form properly filled up and signed by the applicant.
2. Complete the lower portion of the Application form meant for Bank’s Use.
3. Calculate the total amount payable including Bank’s commission/charges etc.
4. If a cheque is presented for the payment of the DD officer should get the cheque duly
passed for payment by the competent authority and record the particulars of DD on the
back of the cheque.
5. If the purchaser desires his account with the branch to be debited for the amount of DD
the officer should get the A/c holder’s signature verified properly, from signature card on
record of the branch and debit client’s a/c for the total amount including commission
charges etc.
6. If cash deposit is desired, request the purchaser to deposit the money at the Teller’s
counter.
7. The teller, after processing the application form, cash or cheque, will validate the
Application form.
8. The first copy of the Application form is treated as debit Ticket while the second copy is
treated as Credit Ticket and sent to Remittance Department for further processing. The
third copy is handed over to the Applicant as customer’s copy.
Each branch maintains a running control serial number of their own for issuance of DD on each
Drawee Branch. This control serial number should be introduced at the beginning or each year
which will continue till the end of the year.
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Procedure of issuing D.D
Figure 5 - Procedure of Issuing DD
The Remittance Department maintains prescribed DD Issue Register. All the required particulars
of all DD issued should be entered in that Register duly authenticated. Separate folios are opened
for each Drawee Branch. While issuing local Draft of Tk. 50,000/- and above, branches shall put
a test number in Red-Ink on the upper portion of the drafts so that the drawee branch can
immediately make payment of the DD on presentation after getting the Test agreed, if otherwise
found in order.
Issuing a Duplicate DD
Duplicate DD should not normally be issued unless thoroughly satisfactory evidence is produced
regarding loss a draft. If the DD reported lost/stolen, a duplicate draft may be issued by the
branch on receipt of a written request from the purchaser.
Before issuing a duplicate DD the branch should observe the following:
1. Verify the Purchase’ signature on the request letter from the signature appearing on the
original application form.
2. Immediately issue a stop payment instruction to the Drawee branch under advice to
Head Office and obtain confirmation of non-payment of the DD acquisition.
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Customers fill up a printed Application form.
Cash dept. Receive cash with commission and postage stamps.
On receiving IDT or applicant form with signature verified L/R make entries in to the register and issue inter bank credit advice in favor of Drawee branch
Cash dept. verified the signature of the client and checks the balance of a/c L/R dept. Debit customers a/c
3. After the Drawee branch has acknowledgement the stop payment order and confirmed
that the local draft in acquisition remains unpaid at their and confirmed that the local
draft in acquisition remains unpaid at their end, the Issuing branch should obtain an
Indemnity Bond on stamped paper/letter of indemnity branch should obtain an
Indemnity Bond on stamped paper/letter of indemnity as per prescribed format from the
purchase duly signed by hi,. The branch will therefore write to Head Office, for their
approval to issue a duplicate draft.
4. The Head Office on receipt of request from the issuing branch will immediately issue a
caution circular to all the branches regarding the loss of the local draft asking them to
record stop payment.
5. The Head Office will therefore issue clearance to the Issuing branch for issuing a
Duplicate draft in lieu of original reported lost.
6. Receipt of clearance from Head Office, the issuing branch will issue a completely fresh
draft marking clearly the words duplicate issued in lieu of original draft
no…………………. dated……………………….in bold letter on the top of the front
page of the draft. The printer serial number on the draft should not however be struck
off. Intimation should be given to the drawee branch furnishing full particulars of the
Duplicate draft. In case of issue of duplicate foreign draft (F.D.D) the Reconciliation
Department, Head Office (HORC) should also be informed.
7. The particulars of the duplicate draft resemble those of the original draft in all respects
that is all the particulars to the duplicate draft must be identical with those in the original
draft. No further (Inter Branch Credit Advice) IBCA is to be issued for the duplicate
draft.
8. Prescribed duplicate issuance charge is to be recovered for issuing the duplicate and
credited to income a/c.
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Cancellation of Demand Draft
The following procedure should be followed for cancellation of a DD:
1) The purchase should submit a written request for cancellation of the DD attaching
therewith the original DD.
2) The Signature of the purchase will have to be verified from the original application form
on record.
3) Manager/ Sub-Manager’s permission is to be obtained before refunding the amount on
cancellation.
4) Prescribed cancellation charge is to be recovered from the applicant and only the amount
of the draft less cancellation charge should be refunded. Commission/Postage etc. Charge
recovered for issuing the DD should not be refunded.
5) The DD should be affixed with a stamps canceled under proper authentication and the
authorized office’s signature on the DD should also canceled with Red in but in no case
should be torn. The canceled DD should be kept with the relevant ticket.
6) The original entries are to be reversed giving proper narration. An (Inter Breach Debit
Advice) IBDA for the canceled DD should be issued on the Drawee branch.
7) Cancellation of the DD should also record in the L.D Issue Register.
Payment of DD
1. When a DD is presented for payment at the paying branch its details are to be carefully
examined with references to the following points.
i) Whether the draft is drawn on their branch
ii) Whether the draft is crossed or not Amount of a crossed draft is not paid in
cash to the payee but to be paid to his account with a bank.
iii) Two authorized officials of the Issuing branch must have signed draft. Their
signatures are to be verified from specimen signature book let to be sure that
the draft is genuine. The verifier should out his initials in red ink against the
authorized signature in the draft.
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iv) Endorsement on the back of the draft must be regular in case the draft is
presented through clearing.
v) The amount of the draft should not exceed the amount protect graphed written
in red ink on the top of the draft.
vi) The payee is to be properly identified in case of case payment.
vii) The particulars of the draft i.e. the draft number date amount and the name of
payee, should be verified from the DD payable Register.
2. On payment the DD is affixed with the branches Paid stamps and signatures there on are
canceled with red ink. The data of payment is recorded in the DD payable register
necessary accounting entries are also passed and recorded in the books of Account.
With IBCA
Dr Remittance Awaiting Disposal L.D payable a/c
Cr. Client’s Account/Teller’s Cash
With IBCA
a. After receiving without Advice a/c
Cr. Client’s a/c/Teller’s Cash
b. After receiving the IBCA
i. Dr. BCBL general A/c
Cr Remittances Awaiting Deposit DD payable a/c
ii. Dr Remittances Awaiting Disposal DD payable a/c
Cr DD Paid without Awaiting Disposal DD payable a/c.
As the draft is issued by the Issuing branch, the payee or purchase of the draft cannot give stop
payment instructions to the Drawee branch. If a paying branch receives any request from the
payee/endorsee or the purchase of a draft for stopping payment of the draft, it will ask them to
approach the issuing branch for the purpose. The paying branch should however exercise
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necessary precaution in this regard. Only the Issuing branch can issue instructions for stop
payment of draft under special circumstances. However, if a draft on which stop payment order
is received from a court of law the same should be carried out.
Only the purchase can request the Issuing branch for cancellation of a L.D. The drawee branch
cannot cancel a L.D. The Drawee branch can accept cancellation instructions only from the
issuing branch. When a draft is cancelled by the Issuing branch the relative entry is the BCBL
general a/c is reversed and IBDA from the Issuing branch, the Drawee branch should reverse the
original liability entries the strength of the IBDA and record suitable remarks in the L.D payable
Register Related IBCA of the draft.
Pay Order
a. Pay order issue process
For issuing a pay order the client is to submit an Application to the Remittance
Department in the prescribed form (in triplicate) properly filled up and duly signed by
application. The processing of the pay order Application form, despot of cash/cheque at
the Teller’s country and finally issuing a order etc, are similar to those of processing of
L.D (loan Draft) Application.
As in case of L.D each branch should use a running control serial number of their own for
issuance of a pay order. This control serial number should be introduced at the beginning
of each year which will continue till the end of the year. A fresh number should be
introduced at the beginning of the next calendar year and so on.
b. Charges
For issuing each pay Order commission at the rate prescribed by Head Office is realized
from the client and credited to Income A/c as usual.
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c. Entries
Dr. Teller’s Cash/client’s a/c
Cr pays Order a/c
Cr commission a/c
d. P.O issue Register
The remittance Department will issue the pay Order’s duly crossed “A/c payee” and will
enter the particulars of the P.O Issued in the prescribed P.O Register duly authenticated.
e. Payment of pay orders
As the P. Os crossed A/c payee, the same are presented to the Issuing branch for payment
either through clearing of for credit to the client’s A/c. Os when presented for payment
are processed in the Remittance Department. On making payment, the relative entry in
the P.O Register is marked of by entering the date of payment in the P.O Register duly
authenticated. The paid instrument is treated as Debit Ticket.
f. Refund of Pay Order
The following procedure should be followed for refund of pay order by cancellation
1. The purchase should submit a written request for refund of pay order by cancellation
attaching therewith the original pay order
2. The signature of the purchaser will have to be verified from the original application
form on record.
3. Manager/Sub-manager’s prior permission is to be obtained before refunding the
amount of pay order cancellation.
4. Prescribed cancellation charge is to be recovered from the application and only the
amount of the pay order less cancellation charge should be refunded.
5. The pay order should be affixed with stamps “cancelled” under should also be
canceled with RED ink but in no case should be torn. The canceled pay order should
be kept with the relevant Ticket.
6. The original entries are to be reversed with proper narrations.
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7. Cancellation of the pay Order should also be recorded in the pay order Issue register
#Issue and payment of Pay-order:
Strictly speaking pay-order is not meant for remittance. Because it is payable by the
issuing branch. An order is issued to facilitate fund transfer within a clearing area.
Dr. Teller’s cash/Client A/c
Cr. Manages cheque
Cr. Commission
Up to Tk.1000 Tk. 23
Tk.1001-100000 Tk. 36
Tk.100, 001-500000 Tk. 58
When paying against pay-order following entries are passed
Dr. Manager’s cheque
Cr Cash/Client A/c
Learning of This Section
The Applicant have to carefully fills up the relevant part of the prescribed Application
form in triplicate, duly signs the same and then gives it to the Remittance Department
Responsible Officer have to carefully fill up the commission part for Bank’s use and
request the Applicant to deposit necessary cash or cheque at the Teller’s counter.
The teller after processing the application form, Cash or cheque has to validate the
Application form. The first copy is treated as Debit Ticket while the second copy is
treated as Credit Ticket and sent to Remittance Department for further processing. The
third copy is handed over to the applicant as customer’s copy.
While transferring money using the mobile responsible officer must be careful about the
phone code of each branch and note the name of responding officer of that branch.
Communication through mobile must carefully handled otherwise any fraud transaction
may happen.
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Necessary Advice has to prepare carefully considering the date, amount, branch code,
customer name, transaction code etc. Debit Advice is sent to the client’s a/c is debited for
the amount of T.T
Cash Section
The cash section performs some important functions like cash payment and cash received.
Except these two major functions it also performs some other functions like opening of cash
every day balance calculation.
Function of cash department
Cash department is the busiest and the most important department of the branch. All cash
receipts and payment including inter branch or interbank cash transactions are done under the
cash department.
Accounting and recording process of this department are very scientific, transparent and modern.
All cash transactions are put into computer in batches and balances are matched. Unlike
traditional banking, separate accounts are maintained for vault cash a/c and teller’s cash a/c
respectively.
There is no strict division of work among tellers. Each of them is doing both receipt and
payment. This is possible because cash is preparing separate tellers cash position.
Cash Received tools
Cash is received in following forms or slips
i) Deposit slips (for deposit into clients account)
ii) IBCA For inter branch cash transaction
iii) I.D.T (inter department ticket)
iv) Prize Bond
v) Credit voucher
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Cash department not only receives cash but also checks and drafts which are deposited for
collection. Cash proof sheet from each teller and cash transaction with branches or BB
(Bangladesh Bank) are recorded on reserve sheet to find out closing cash reserve. At the end of
the day a summary cash position is prepared and matched with actual cash position and computer
balance report. If their closing position along with the subsidiary register book then the
transactions of the day is ok.
Cash Receiving Procedure
Figure 6 – Cash receiving procedure
Cash proof sheet from cash teller and each transaction are recorded on reserve sheet to find out
closing cash reserve. At the end of the day a summery cash position is prepared and checked
with actual position and computer balance report. If the three closing position matches, then the
transaction of the day are ok.
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Received cash by the teller at cash counter on deposit slip, credit ticket etc.
Counting the notes and checking denominations given on the back of the deposit slips, credit ticket etc. etc.
Filling the cash proof sheet
Having the original and the duplicate copy of deposit slips signed by the cash officer
Returning the duplicate copy to the client
Cash Payment tools
1) Cheque, draft, pay order, TT
2) Debit voucher (Realization of FDR proceeds)
3) Debit tickets
4) IBDA (Inter Branch Debit Advice) issued from the branch.
5) IBCA (Inter Branch Credit Advice) issued by another bank of Head office.
Vault Limited TK. 1.00 Core
Cheque Payment authority to cash in charge TK 1 lac
Cash Payment Procedure
Figure 7 – Cash payment procedure
When cash is transferred to any other branch the following a/c entries are made with the passing
of inter branch debit advice.
Dr. BCBL general A/C
Cr. Reserve cash
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Presenting Check
(By order or by holder)
Scrutiny of Cheque by the teller
Checking computerizes Statement of Balance of A/C by the cash in charge
Approving/canceling the Cheque by the sign of cash in charge
Verification whether checked by the teller
When cash is received from any other branch of BCBL following entries are made
Dr. Reserve Cash
Cr. Tellers Cash
When tellers take cash from reserve following entries for total receipt
Dr. Reserve Cash
Cr Teller Cash
For total cash received against Inter Department Ticket (IDT) following entries are made:
Dr. Teller Cash
Cr. IDT
At the end of the day for all payments against cheques and debit vouchers following single
entries are made:
Cr Tellers a/c
Accounts Department
Accounts Department is called as the nerve Centre of the bank. In banking business transactions
are done every day and these transactions are to be recorded properly and systematically as the
banks deal with the depositor’s money. Any deviation in proper recording may hamper public
confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will
lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank
provides a separate department; whose functions are to check the mistakes in passing vouchers or
wrong entries or fraud of forgery. This department is called as Account Department.
Besides the above, the bank has to prepare some internal statements as well some statutory
statements which to be submitted to the central bank. Accounts Department prepares these
statements also. The department has to submit some statements to the Head Office, which is also
consolidated by the Head Office later on. The tasks of the department may be seen in two
different angles:
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A. Daily Task: The routine daily tasks of the Accounts Departments are as follows,
1. Recording the transactions in the Clean cash books
2. Recording the transactions in general and subsidiary ledger
3. Preparing the daily position of the branch comprising of deposit and cash
4. Preparing the daily Statement of Affairs showing all the assets and liability of the
branch as per General Ledger and Subsidiary Ledger separately.
5. Making payment of all the expenses of the branch
6. Recording Inter branch fund transfer and providing according treatment in this regard.
7. Checking whether all the vouchers are correctly passed to ensure the conformity with
the ‘Activity Report”, if otherwise making it correct by calling the respective official
to rectify the vouchers.
8. Recording of the vouchers in the Vouchers Register.
9. Packing of the correct vouchers according to the debit voucher and the credit voucher.
B. Periodical Task: The routine periodical tasks performed by the department are as follows:
1. Preparing the monthly salary statement for the employees.
2. Publishing the basic data of the branch
3. Preparing the monthly position for the branch which is sent to the Head Office to
maintain Statutory Liquidity Requirement (S.L.R)
4. Preparing the weekly positions for the branch comprising of the break of sector wise
deposit, credit.
5. Preparing the weekly position for the branch comprising of denomination wise
statement of cash in tills.
6. Preparing the quarterly statement (SBS-2 and SBS-3) where SBS-2 shows
“classifications of deposits excluding inter bank deposit, deposits under wage earners’
scheme and withdrawals from deposit account” and SBS-3 shows “classifications of
advances (excluding inter bank) and classification of bills purchased and discounted”
during the quarter.
7. Preparing the budget for the branch by fixing the target regarding profit and deposit.
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Loans and Advances
Introduction
Major source of income of a bank is the earning from credit. Borrower selection is the main and
prime task of this department. Advancing loans is the primary function of the commercial banks.
Without loans country’s industrial and commercial development is not possible. Therefore,
smooth loan system in banking sector is a catalyst for economic development of a country.
Manager’s Concern
In the process of loan Manager has to ensure three things:
1) How to locate purpose
2) How to locate security
3) How to locate borrower
How to locate purpose
Manger has to ensure that the loan will generate adequate cash. For that matter the loan should
be engaged in productive activities. Such an employment will increase economic activities,
promote trade and commerce, create employment avenues and increase movement of goods and
flow of cash. This flow of cash is known in the banking concept as cash generation. If there is
enough cash generation, funds will automatically flow into the borrowers accounts with the bank
and will show a satisfactory turnover in accounts which the lending bank always demands. This
is why the manager’s speculation should be making the highest cash through the employment of
the advances.
How to locate security
As soon as the evaluation of purpose is done manager will examine and evaluate in the following
manner the securities offered by the prospective borrower:
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a) Security is the source of information on the prospective borrower. If offered are valuable
properties like land, building, shares of stocks or pledged goods, these will offer adequate
information about the borrower as to his financial position.
b) If securities are hypothecated stocks of raw materials for production, these will offer
adequate information about the borrower as to his ability or capacity to utilities
c) Securities (tangible or intangible) offer a yardstick for measuring the extent of
involvement of the borrower himself. The lending bank’s investment of funds is a joint
venture of the banker and the borrower. The securities offered are the borrower’s portion
of involvement i.e. his equity or capital. Thus the greater is his involvement, the better for
the banks. The borrower in that case will think twice that if the business goes wrong, it is
who will suffer most. Thus it will be in his own interest that he will avail and utilize the
loan as per agreed stipulations. Thus the best way to safeguard the lending banks interest
is, as far as possible to maximize the bank’s commitment.
d) The branch Manager’s responsibility as to provide security is also to see how much
control he will be in a position to exercise on the entire stocks of the borrower.
How to locate borrower
In appraising a loan process, the selection of the prospective borrower is the most vital point. The
borrower is the real actor and must be in position to achieve the purpose for which the loan has
been requested. In selecting ideal borrower, the branch manager thus assumes the greatest
responsibility. Capital is another point to indicate the borrower’s position. He should be given
loan in proportion to this own investment as working capital. As a general rule a bank should not
sanction loan more than the investment of the borrower.
Then the consideration of borrower’s capacity - whether the borrower can utilize the funds or
not.
Of all the qualifications of a prospective borrower, character is undoubtedly the greatest. While
the capacity and capital are the factors upon which depends his ability to repay the money
advanced, the character of the borrower indicates his intention to repay the loan.
1
To select the ideal borrower the following points have to consider:
a) Branch records
The manager may have first hand information on a prospective borrower by a reference
to his records. The turnover of his financial dealings is reflected in the ledger folios of his
branch.
b) Borrower’s Record
The prospective borrower may be advised to submit his books of accounts balance sheet
etc. for examination by the manager. These financial tools reflect the position of his
assets and liabilities and a fair idea about the capital and capacity of the borrower.
c) Personal Enquires
As an individual the borrower must be a desirable person in the society. He must have
integrity. There are some factors such as the sobriety, the promptness of payment goods
habits personality, the ability and the willingness to carry a project
Advance Secured and Unsecured
1. Secured Advance
Secured advance are those advances which are secured by tangible securities of adequate
value over which the bank has either absolute or constructive control in addition to the
personal guarantee of the customer.
2. Unsecured Advance
The advances which are granted to a constituent of undoubted standing and reliability and
only in exceptional circumstances and for short period without any tangible security are
called unsecured advances.
1
Functions of Advance Department
Ensuring that funds are disbursed only after compliance with terms and conditions or required
documents received.
Make sure that the bank has always valid and current loan documentation.
Ensuring that the collateral security is adequate at times to support the loans. Keeping the
loan documentation under safe custody.
Ensuring that the bank receives sufficient valid insurance cover whenever required from a
recognized insurance company.
Monitoring the receipt of periodical receivable. Debiting the client for all charges,
interest etc.
Maintaining the central liability records for all extensions of credit and balancing the totals with
General Ledger.
1
LOAN & ADVANCES
1
Figure 8 – Loans types
Types of Loan
Bangladesh Commerce Bank Zigatola Branch has the following loan schemes
Commercial Loan
Term Loan
Working Capital Loan
Agricultural Loan
House Building Loan
Staff Loan(BCBL)
Other Loan
Commercial Loan
The limited loans with expiry date of loan payment, which can be transacted without any
particular payment schedule, are termed as continuous loan. Following are the various
categories:
1. CC (Hypo)
2. SOD (Real Estate/ FO/ Shares)
1
3. LTR (Loan Against Trust Receipt)
4. LIM (Loan Against Imported Merchandise)
Commercial Loan Interest Ratea. CC (Hypo) 16.00%b. CC (Pledge) 16.00%c. SOD (RE) 16.00%d. LTR/LIM 16.00% (2% penal interest
will be charged for overdue LTRs)
Table 4 – Interest rate of commercial loan
Cash Credit (CC)
a. Cash credit is given through the Cash Credit (CC) account.
b. Cash credit account is basically a current account, however a little difference exist between them.
The distinction between a current account a CC account is that the former is intended to be an
account with credit balance and the latter an account for drawing of advances.
c. Operation of cash credit is as same as overdraft. The purpose of cash credit is to meet working
capital needs of traders, farmers, and industrialists.
Over Draft (OD)
a. Overdrafts are those drawings which are allowed by the banker in excess of the balance
in the account up to a specified amount for definite period.
b. Generally it is given to the businessmen to maintain their business activities.
c. Any deposit in the SOD account is treated as repayment of overdraft.
d. Generally provided against FDR, any primary security etc.
1
Term Loan
The loans which are to be paid within limited term with a particular payment schedule are known
as term loan.
Following are the various categories:
(a) Term loans up to 5 years
1. Project Financing
(b) Term loan over 5 years
1. Project Financing
Short term Agro and Micro Credit
The short-term loans which are listed in yearly loan disbursement schedule served by the loan
department of Bangladesh Bank are termed as short-term agricultural loan and micro-credit. The loan
given to the agricultural sector for less than 12 months is also included in this category. By short-term
loan we mean the loan below Tk 10,000 to be paid within 12 months.
Term Loan Interest Rate
a. Large & Medium Scale Industries 13.00%
b. Small Scale Enterprise (Secured) 17.00%
c. Small Scale Enterprise (Unsecured) 18.00%
Table 5 - Interest rate of Term loan
Working Capital Loan
Corporate Bodies & Large Industries
SME
Working Capital Loan Interest Ratea. Large & Medium Scale Industries 14.00% – 15.00%b. Small Scale Enterprise (Secured) 17.00%c. Small Scale Enterprise (Unsecured) 18.00%
Table 6 - Interest rate of Term loan
Agricultural Loan
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Small Agricultural Loan
Loan to agro based industries
Agricultural Loans Interest Rate
Agricultural Loans 13.00%
Loan to NGO/ MFIs
Table 7 –Interest rate of agricultural Loan
House Building Loan
Residential
Commercial
House Building Loan Interest Ratea. Residential 18.00%b. Commercial 18.00%
Table 8 - Interest rate of house building loan
Others Loan
Transport Loan
Loan to Non Banking Financial Institution
Syndicate/ Club financing
Loan against financial obligation
Export Loan
Loan against bill purchase/ Share Purchase
Consumer credit scheme
Special loan for service holder
Loan for educated unemployed women
1
Other Loan Interest Rate
Transport Loan (Private use/Commercial use) 16.00%
Non Banking Financial Institution (NBFI) 15.00%
Syndicate/Club Finance As per Lead Bank agreement
Loan Against FDR Above 3.00% over FDR rate (minimum 14.00%)
Export Loan 7.00%
Trade Finance (For rice, wheat, edible oil, pulse, peas, onion, dates & sugar)
12.00%
Bill purchase / Loan against Share (SODS) 17.00%
Consumer Credit Scheme (CCS) 18.00%
Special Scheme for Service Holders 17.00%
Special Loan for unemployed women 16.00%
Women Entrepreneurs with Govt. Re-fiance 10.00%
Prime Customer 15.00%
Table 9 - Interest rate of different types of loan
Staff Loan
1. Staff House Building Loan – SHBL
a. 120 times of the basic salary is provided as SHBL
b. Bank Rate + 1%, interest is charged to the employee
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c. Repayment is adjusted from their monthly salary
d. Repayment is made at equal monthly installment
2. Staff Loan Against Provident Fund – SPF
a. 10% of basic is contributed by employee in every month
b. 10% of basic is also contributed to the PF by the Bank
c. Repayment is adjusted from their monthly salary
d. Maximum Sanction from PF
3. Car Loan
Staff Loan Interest Ratea. Car Bank Rate (5.00%)b. Provident Fund 9.50%b. House Building 8.00%
Table 10 - Interest rate of staff loan
Process of Loan
Application
Applicant applies for the loan in the prescribed form of the bank describing the types and
purpose of loan.
Sanction
a. Collecting credit information about the applicant to determine the credit worthiness of the
borrower. Sources of information
i. Personal Investigation, Confidential Report from other bank, Head
Office/Branch/Chamber of Commerce.
ii. CIB (Central Information Bureau) report from Central Bank.
b. Evaluation of compliance with its lending policy.
c. Evaluating the proposed security
1
d. If loan amount exceeds 50 lac then bank goes for LRA Analysis.
e. LRA is must for the loan exceeding one crore – as ordered by Bangladesh Bank. LRA has
described at the end of this chapter.
If everything is in accordance the loan is sanctioned
Documentation
a. Then the bank prepares a loan proposal containing terms and conditions of loan for approval
of H.O. or Manager.
b. Takes the necessary papers and signatures from borrower
Disbursement
A loan Account is opened where
Dr customer A/C.
Cr Respective Loan A/C
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Any Branch Banking
Bangladesh commerce bank limited provide any branch banking service to their customer. Customers who have an account of Bangladesh commerce bank they are enjoy that service.
For Example-
A karim have an account holder of Dualutpur branch of BCBL, he want to draw money but now he stay in Dhaka, that’s why in Dhaka any branch he will draw his preferable amount of money. He draws money from Zigatola branch. Then Zigatola branch how to provide that kind of service -
From Zigatola Branch- At that time Dualutpur branch-
BCBL General A/C –Dr. Customer A/C –Dr.
BCBL General A/C- Cr.
If deposit the money-
From Zigatola Branch- At that time Dualutpur branch-
BCBL General A/C –Cr. Customer A/C –Cr.
BCBL General A/C- Dr.
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Overall Banking Performance of Bangladesh Commerce Bank limited
Bangladesh commerce bank limited in Zigatola branch overall activities are explained, after that
scenario I also represent the overall banking performance of Bangladesh commerce bank limited,
which is reflect that the current position and growth among of the other commercial bank.
Deposits and other accounts
At the end of December 2010, the deposit of the bank stood at TK. 1218.76 cores as against tk.
760.50 Core OF 2009. Showing a growth rate of 60.26% this may be considered a remarkable
achievement in the backdrop of volatile market scenario of the country.
Figure 9- Overall deposits of BCBL
1
Asset Portfolio
In 2010 Bangladesh commerce bank limited asset portfolio represent the bank current situation
which is reflect that bank held in a competitive position to the other commercial bank.
Figure 10- Asset portfolio of BCBL
Asset
Asset position of Bangladesh commerce bank ltd. at December 2010 represent that the bank is
creating a strong position in the banking sector of Bangladesh.
1
Figure 11- Asset of BCBL
Types of Deposit
Bangladesh commerce bank limited gather fund from different types of deposits. The bank has
attached top priority on the mobilization of low cost fund. The deposit mix of the bank as on 31
December 2010 was as follows:
Figure 12- Different type deposits of BCBL
Loans and Advances
1
The loans and advaces of the bank registered an impressive growth during the year 2010. The
total loans and advances as on 31 december 2010 was Tk. 826.60 core as against Tk. 625.62
core during gthe correspondeing period of previous yeear showinhg an increase of 32.12%.
Figure 13- Loan and advances of BCBL
The bank gives top most priority to acquire quality assets and does appropriate lending risk
analysis while approving commerecial and trade loan to cients. The advance matrix of thte bank
as on 31 decmber 2010 was as follows:
1
Figure 14- Loan and advances matrix of BCBL
SWOT Analysis
1
SWOT is an acronym for the internal Strength and Weakness of a firm and the environmental
Opportunity and Threat facing that firm. So if we consider Bangladesh Commerce Bank as a
business firm and analyze its strength, weakness, opportunity and threat, the scenario will be as
follows:
Strength
(a) Good management.
(b) Cooperation with each other.
(c) Usage of faster pc bank software.
(d) Membership of SWIFT.
(e) Good banker-customer relationship.
(f) Online Banking services.
(g) Strong financial position.
(h) Strong position of CAMEL rating.
(i) Huge business area.
(j) Excellent monitoring and supervision.
(k) Energetic as well as smart teamwork.
Weakness
(a) Lack of proper motivation, training and job rotation.
(b) Lack of experience employees in junior level management.
(c) Lack of own ATM services.
(d) Tendency to leave the bank in quest of flexible environment.
Opportunity
1
(a) Expand market.
(b) Growth of sales service.
(c) Change in political environment.
(d) Lunching own ATM card.
Threat
(a) Different service of FCB’s (Phone Banking / Home Banking)
(b) Daily basis interest on deposit offered by HSBC.
(c) Entrance of new PCB’s
.
Findings
1
I have find out some points by screening the whole study, which is expressed as major findings. I
have analyzed the data sincerely and carefully and have tried to identify appropriate findings.
Moreover, conversations with the BCBL officials were very significant for these findings.
After overall appraisal of BCBL, the major findings are as follows:
Position: Bangladesh Commerce Bank Limited held competitive position in private sector
banking operations of the country.
Operational Orientation: Its’ major operations are development & welfare oriented.
Management System: Management system of BCBL is fully democratic.
Requirements of Bangladesh Bank: BCBL always maintains the rules declared by
Bangladesh Bank.
Training Facilities: BCBL provides training facilities to its officer of the bank and also
provides executive development & internship program.
Management Functions: The management functions (from planning to control) are not
clearly present in their various activities.
Computerization: Most of the activities are computerized.
Manual Work: Paper-based works are still existed in branch.
Decoration: It is one of the leading banks of Bangladesh but it has no attractive
appearance in office environment.
Recommendation
1
In order to get competitive advantage & to deliver quality service, top management should try to
modify the services. For the improvement of the service the following measures should be taken:
Customer’s Convenience: For customer’s convenience, BCBL should provide more
personnel to deliver faster services to their honorable customer.
Human Development: Development of human resources should be ensured to increase
efficiency in work.
Communication System: Ensure proper communication system and maintenance of files
& machineries should modernize.
Interest: More interest should be paid on deposit account so that customers are convinced
to deposit their money in bank.
R & D: Research & Development wing must be more extensive & rich.
Strategy: Effective strategies must be undertaken against defaulter.
Project Management: ‘Project Management’ must be practiced in case of investing in the
project. Feasibility study of the project, project planning, monitoring & evaluation should
be undertaken.
Managerial Function: BCBL must have to follow the management functions (from
planning to control) strictly in all of their business activities and also operation the bank.
Financial Analysis: Branch should have a separate section to analyze the financial
statement for fining its liquidity, profitability & ownership ratios.
Strict Rules for arrival and departure for the employee: Management should strict about
the arrival and departure time for the employees.
Job Rotation: In BCBL job rotation is fully absent job rotation is very important to make
the entire employee efficient for all departments.
1
Appreciation: No doubt that in BCBL female employees is more efficient and hard
working than male employees. It is very important to appreciate them and give them
proper respect because if they get the appreciation then they can increase their volume of
work. It is not only for the female it is also important both for male and female
employees.
Some other important factor that should be focused on the development process-
Time consumed at service level should be minimized at optimum level.
Evaluates customer’s needs from their perspective and explains logically the
shortcomings.
Improve office atmosphere to give customers better feeling.
Use of effective MIS (Management information system).
To deliver quality service top management should try to mitigate the gap between
customer’s expectation & employee’s perception.
1
Conclusion
There are a number of nationalized and foreign banks operating their activities in Bangladesh.
The BCBL is one of them. For the future planning and the successful operation in achieving in
its’ BCBL goal in this current competitive environment this report can be a guideline.
Bank always contributes towards the economic development of a country. BCBL, compared with
other banks are contributing more by investing most of their funds in fruitful projects leading to
increase in production. It is obvious that right thinking of this bank including establishing a
successful network over the country and increasing resources, will be able to play a considerable
role in the portfolio of development financing in the developing country like ours.
BCBL continues to play its’ leading role in socio-economic development of the country as a
companion of Independent Bangladesh. Besides its’ traditional function such as deposit
mobilization, deployment of fund in trade, commerce, industry, agriculture, import & export
business, outward and inward remittance as an agent of Bangladesh Batik of BCBL has emerged
as the pioneer of playing key role in the country.
Bangladesh Commerce Bank is a private bank but it has no attractive environment ii their branch
and all branches are not computerized, even total cash are not properly use when this bank
develop their all branch by attractive environment and computerized. On the other hand cash are
properly used at that time this bank reached in the top-level private bank in our country. If the
Bank cannot fulfill these things, they cannot run in the future with their competitors Bank.
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Acronyms
BB Bangladesh Bank
BCBL Bangladesh Commerce Bank Limited
BL Bill of Lading
CC Cash Credit
C & F Clearing & Forwarding
CIB Credit Information Bureau
CRF Clean Report Findings
EPB Export Promotion Bureau
ERC Export Registration Certificate
EXP FormExport Form
IBCA Inter Branch Credit Advice
IBCT Inter branch Credit Transaction
IBDA Inter Branch Debit Advice
IRC Import Registration Certificate
LIM Loan against Imported Merchandise
LATR Loan against Trust Receipt
DIBOR Dhaka Inter Bank Offer Rate
OBC Outward Bills for Collection
PAD Payment against Document
SOD Secured Overdraft
SWIFT Society for Worldwide Interbank Financial Telecommunication
TIN Tax Identification Number
1
Bibliography
Brigham, Eugene F Joel E. Houston, “Fundamental of Financial Management”, Tenth Edition, Harcourt Publisher International Company, 2001.
Basudevan, S.V., Theories of Commercial Banking, Reading Materials on Theory & Practice of Banking (B-101), Bangladesh Institute of Bank Management (BIBM), 2000.
Others
Diary-Diary has been maintained regularly to record all the activities of practical orientation.
Bangladesh Commerce Bank Limited, Annual Report 2008
Bangladesh Commerce Bank Limited, Financial Transaction’s Files.
Website
www.bcblbd.com
www.bb.org.bd
1
Appendix
Board of Directors
1. Mr. A.Q. Siddiqui (Chairman) 2. Mr. Mahmudul Huq Bhuiyan (Director)
3. Mr. Md. Shafiqul Azam (Director)
4. Mr. Md. Emdadul Hoque (Director)
5. Mr. Rana Kaiser (Director)
6. Mr. Manowar Hossain (Director) Managing Director
7. Mr. Anis Ahmed (Director) Managing Director
8. Mr. Abbas Uddin Ahmed (Director)
9. Mr. Md. Humayun Kabir (Director) Managing Director
10. Dr. Md. Zillur Rahman (Director) Managing Director
11. S. A. Chowdhury (Managing Director)
12. Mr. Md. Humayun Kabir (Observer) General Manager
1
Bank Executive
SL Name Designation
01. Mr. S.A. Chowdhury MD
02. Dr. Muhammad Asaduzzaman DMD
03. Mr. M.A. Motalib Chowdhury CEO*
04. Mr. M Ebadat Hussain EVP
05. Mr. Md. Shamsuddin Ahmed SVP
06. Mr. Md. Ghulam Nabi SVP
07. Mr. Sagir Ahmed SVP
08. Mr. Salim Hasan SVP
09. Mr.K.M. Ashraf Hossain SVP
10. Mr. Md. Abul Hossain SVP
11. Mr. Md. Jahangir Alam VP
12. Mr. Selim Ahmed VP
13. Mr. S.M. Waliullah VP
14. Mr. Ehsan Ahmed Rouf VP
15. Mr. Anis Uddin Ahmed VP
16. Mr. S.M. Reazur Rahman VP
17. Mr. H. M. Abul Kalam Azad VP
18. Mr. Md. Kamruzzaman Akand VP
19. Mr. Md. Shafiqul Islam VP
20. Mr. Md. Idris Ali VP
21. Mr. Afzal Hossain VP
22. Mr. Md. Abdul Halim VP
23. Mr. S.M. Alamgir VP
24. Mr. Dewan Md. Moniruzzaman VP
1
25. Mr. Md. Shahadat Hossain VP
26. Mr. Ali Azam Chowdhury VP
27. Mr. Md. Kabir Ahmed AVP
28. Mr. Mushfique Hossain AVP
29. Mr. Syed Akhter Hossain AVP
30. Mr. Md. Enamul Hoque AVP
31. Mr. S.M. Showkat Ali AVP
32. Mr. Md. Nizamuddin AVP
33. Mr. Md. Saiful Islam AVP
34. Mr. Mbdul Munim Chowdhury AVP
35. Mr. Md. Mahabub Morshed AVP
1
2010 2009 2008 2007
TAKA TAKA TAKA TAKA
763,123,871 778,555,729 518,019,218 434,415,228
174,197,323 131,700,299 116,593,381 125,275,724
588,926,549 646,855,430 401,425,837 309,139,504
4,169,752,271 984,808,753 907,161,176 762,086,503
4,109,453,871 943,891,978 871,256,479 707,986,782
60,298,400 40,916,775 35,904,697 54,099,721
330,000,000 450,000,000 410,000,000 360,000,000
1,472,321,723 710,059,072 645,771,571 508,375,581
1,127,904,760 693,348,800 640,478,600 504,749,500
344,416,963 16,710,272 5,292,971 3,626,081
7,600,797,170 5,526,804,353 5,018,350,550 4,205,522,665
7,599,373,830 5,523,312,097 5,006,494,973 4,191,386,707
1,423,340 3,492,256 11,855,577 14,135,958
665,222,894 729,397,327 767,637,716 804,832,317
8,266,020,064 6,256,201,680 5,785,988,266 5,010,354,982
48,180,592 38,953,476 37,186,676 37,730,040
528,961,643 209,240,780 216,674,321 205,429,061
- - - -
15,578,360,165 9,427,819,490 8,520,801,228 7,318,391,395
100,000,000 - - -
12,187,614,460 7,604,975,266 6,786,866,290 5,682,937,214
1,965,647,110 541,337,121 798,680,849 601,927,176
989,904,941 898,657,064 639,132,568 574,598,959
1,334,453,570 662,053,186 3,568,352,651 3,067,812,879
5,026,466,909 3,965,746,954 573,108,556 413,697,365
752,111,890 663,816,075 513,163,612 379,613,223
160,908,668 131,060,021 90,383,257 98,928,342
1,820,000,000 400,000,000 420,000,000 450,000,000
138,121,373 342,304,846 184,044,799 96,359,270
58,628,474 71,727,047 84,802,265 106,875,766
1,085,716,211 732,372,478 629,136,805 523,729,152
13,431,959,145 8,409,074,791 7,500,805,360 6,313,542,132
1,988,742,800 920,000,000 920,000,000 920,000,000
39,000,000 39,000,000 39,000,000 39,000,000
- - 54,250,000 54,250,000
98,329,157 65,792,413 35,453,035 52,710,277
3,848,512 3,848,512 3,848,512 3,848,512
11,836,557 11,836,557 11,836,557 -
- 4,395,060 - -
4,643,994 (26,127,843) (44,392,236) (64,959,526)
2,146,401,020 1,018,744,699 1,019,995,868 1,004,849,263
15,578,360,165 9,427,819,490 8,520,801,228 7,318,391,395
Total Shareholder's Equity
TOTAL LIABILITY AND SHAREHOLDER'S EQUITY
Revaluation Reser ve on DSE Member ship
Statutory Reserve
Other Reserve
Revaluation Reser ve for HTM Securities
Exchange Equalizaton Account
Surplus/(Deficit) in Profit and Loss account
TOTAL LIABILITIES
SHAREHOLDER'S EQUITY
SHARE CAPITAL
Paid-up-Capital
Share Capital BCI Ltd.
Bills Payable
Bank Deposit
Other Deposits
Deposits(BCI)
OTHER LIABILITIES
DEPOSITS AND OTHER ACCOUNTS
Current Deposit and Other Accounts etc.
Savings Bank Deposits
Fixed Deposits
Short Term Deposits
Deposit under different schemes
TOTAL ASSETS
LIABILITIES AND CAPITAL
Borrowings from other Banks & Financial Institutions and agents
Loans & Advances BCI
Total Loans and Advances
Fixed Assets including premises and furniture and fixtures
OTHER ASSETS
NON-BANKING ASSETS
Government
Others
LOANS AND ADVANCES BCBL
Loan, Cash Cr edit and Over Draft etc.
Bills Purchased and Discounted
INSTITUTIONS
In Bangladesh
Outside Bangladesh
MONEY AT CALL AND SHORT NOTICE
INVESTMENTS
CASH
Cash in Hand ( Including foreign Currencies)
Balance with Bangladesh Bank and its agent bank ( s)
(Including Foreign Currencies)
BALANCE WITH OTHER BANKS & FINANCIAL
Bangladesh Commmerce Bank Limited
Balance Sheet
PARTICULARS
PROPERTY & ASSETS
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2010 2009 2008 2007
TAKA TAKA TAKA TAKA
13,231,321 13,231,321 13,231,321 13,231,321
100,834,581 104,024,022 398,937,233 199,322,657
634,746,923 250,975,065 397,086,762 601,926,411
67,250,528 23,547,453 4,096,328 9,956,293
71,192,301 554,287,301 71,530,301 71,530,301
- - 471,081,000 404,400,000
8,872,556,554 946,065,162 1,355,962,945 1,300,366,983
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
887,255,654 946,065,162 1,355,962,945 1,300,366,983 TOTAL OFF-BALANCE SHEET ITEMS
Undrawn note issuance and r evolving
underwriting facilities
Undrawn formal standby facilities, cr edit lines and
other commitments
Total
OTHER COMMITMENTS
Documentary Credits and shor t term trade
related transactions
Forward assets purchased and forward
deposits placed
Off Balance Sheet
Bills for Collection
Other contingent liability
Case against the bank which not acknowledged by the bank
TOTAL CONTINGENT LIABILITIES
CONTINGENT LIABILITIES
Contra entries (BCI)
Letter of Guarentees
Letter of Credit
Bangladesh Commerce Bank Limited
1
2010 2009 2008 2007TAKA TAKA TAKA TAKA
926,555,777 905,556,240 634,800,634 510,962,381 621,149,033 552,907,005 523,104,891 438,607,424 305,406,744 352,649,235 111,695,743 72,354,957 178,700,106 71,751,529 48,528,881 25,732,318 90,933,697 43,619,296 37,088,348 29,240,996 42,740,676 21,850,689 17,611,529 8,897,202
312,374,479 137,221,514 103,228,758 63,870,516
617,781,223 489,870,749 214,924,501 136,225,473
184,540,144 142,390,307 123,167,369 118,213,319 28,731,799 18,418,714 20,576,907 16,343,561
599,498 435,158 527,404 148,260 4,096,523 2,708,095 3,102,508 3,536,508 9,832,971 5,332,608 5,198,909 3,945,369 5,739,353 1,641,200 1,537,400 1,314,457
771,150 692,000 755,326 602,248 100,000 400,000 653,510 1,644,710
15,528,913 12,256,918 10,204,458 7,726,421 42,425,103 17,465,881 19,494,883 12,050,963
292,365,455 201,740,881 185,218,674 165,525,816 325,415,758 288,129,868 29,705,827 (29,300,343) 100,000,000 51,800,000 - -30,000,000 - - -32,732,049 84,632,979 - -
162,732,049 136,432,979 - -162,683,719 151,696,889 29,705,827 (29,300,343) 99,375,138 110,390,792 3,197,372 -
100,000,000 110,635,242 3,197,372 -(624,862) (244,450) - -
63,308,582 41,306,097 26,508,455 (29,300,343)
32,536,744 30,339,378 5,941,165 -- - - -- - - -
30,771,838 10,966,719 20,567,290 (29,300,343) 3 4 3 (3)
Retained Earnings/(Loss) carried forward Earning per Share(EPS)
APPROPRITATIONSStatutory Reserve General Reserve Dividends etc.
TOTAL PROVISION (D) TOTAL PROFIT/(LOSS) BEFORE TAX (C-D) PROVISION FOR TAX Provision for taxProvision for Deferred TaxNET PROFIT/(LOSS) AFTER TAX
Other Expenses Total Operating Expenses (B) Profit/(Loss) before Provision (C)=A-B Provision for Loans & Advances Provision against Un Classified LoansOther Provisions
Postage, Stamp, T telecommunication etc. Stationery, Printing, Advertisement etc. Managing Director's salary and allowances Director's Fee Audit & Evaluation Fee Depreciation & Repair to Fixed Assets
TOTAL OPERATING INCOME (A)
OPERATING EXPENSESSalaries and Allowances Rents, Taxes, Insurances, Lighting etc. Legal Expenses
Net Interest Income Income from Investments Commission, Exchange Ear nings & Brokerage Other Operating Income
OPERATING INCOME Interest Income Less: Interest Paid on Deposits and Bor rowings
Bangladesh Commerce Bank Limited Profit and Loss Accounts
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2010 2009 2008 2007TAKA TAKA TAKA TAKA
1,016,111,246 919,934,757 671,888,982 540,203,377 (583,850,852) (575,484,571) (523,104,891) (438,607,424)
885,146 868,418 175,214 158,707 90,933,697 43,619,296 - -
- - (124,704,769) (119,527,776) (190,279,497) (144,031,507) - -
(42,661,293) (29,029,810) (30,629,035) (25,572,765) (1,814,840) (14,409,179) (8,310,166) (10,523,104)
241,921,365 63,445,410 65,965,196 34,470,813 (42,425,103) (10,793,900) (21,431,123) (14,446,181) 488,819,868 254,118,824 29,849,408 (33,844,353)
1,906,443,679 199,806,090 327,139,629 904,267,872 - - (66,996,000) (15,750,618) - - - -- - - -
(2,009,818,384) (470,213,414) (775,633,284) (340,595,675) (319,720,864) (85,129,753) (17,494,316) 231,002,036
1,420,000,000 (20,000,000) (30,000,000) 100,000,000 2,362,639,194 688,108,976 1,133,929,076 923,705,592
353,343,733 87,040,281 83,334,152 5,906,537 - - - -
2,395,263,547 453,924,914 356,989,037 870,423,519
- (11,417,301) (1,666,890) -- - - -
(9,227,116) (11,453,325) (7,910,383) (19,539,211) - - - -
(9,227,116) (22,870,626) (9,577,273) (19,539,211)
1,068,742,800 - - -- - - -
1,068,742,800 - - -3,454,779,230 431,054,288 347,411,763 850,884,308
- - 66,996,000 15,750,618 2,936,001,672 2,475,658,994 2,061,251,231 1,194,616,305 6,390,780,902 2,906,713,282 2,475,658,994 2,061,251,231
Net Increase/(Decrease) in Cash (A+B+C) Effects of Changes in CRR Maintained with Bangladesh Bank Opening cash & Cash Equivalent Closing Cash and Cash Equivalent
Net Cash used in Investing Activities (B)
CASH FLOW FROM FINANCIAL ACTIVITIESReceipts from issue of or dinary Shares/(Redemption of Share capital) Dividend paid Net Cash Flow from Financial Activities (C)
CASH FLOW FROM INVESTING ACTIVITIESProceeds from Sale of Secur ities Increase/(Decrease) in Cash due to Sale and Pur chase of Assets (Purchase)/Sale of Property plant and equipment (Purchase)/Sale of Subsidiar y
(Increase)/Decrease in Other Assets Increase/(Decrease) in Deposits from Other Banks Increase/(Decrease) in Deposits from Clients Increase/(Decrease) in Other Liabilities Increase/(Decrease) in Trading Liabilities Net Cash Flow from Operating Activities (A)
Increase/Decrease in operating Assets and Liabilities (Increase)/Decrease in Statutor y Deposits Purchase/Sale of T rading Securities (Increase)/Decrease in Loan & Advances to Other Banks (Increase)/Decrease in Loan & Advances to Clients
Recoveries of Loans Pr eviously Written Off Payment to Supplier s Income Tax paid Receipts from other Operating Activities Payment for other Operating Activities Operating Profit Before Changes in current Assets & Liabilities
CASH FLOW FROM OPERATING ACTIVITIESInterest Receipts in cash Interest Payment Dividend RecieptsFee and commision receipts in cashSalary & Allowances Payments
Bangladesh Commerce Bank Limited Cash Flow Statement
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