Internship Report

On
Functions of Foreign Exchange of Jamuna Bank Limited (JBL)

Submitted By:
Tazizur Rahman
ID: 01-18
Batch: First

Submitted To:
Md. Abul Kashem
Assistant Professor

Date of Submission:
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka

Letter of Submission
Date: August19, 2010
Md. Abul Kashem
Assistant Professor
Department Of Management Information Systems (MIS)
University of Dhaka
Subject: Submission of internship report.
Dear Sir,
This is to inform you that I have completed my internship report on the topic Functions of
foreign exchange of Jamuna Bank Ltd of Bangladesh. I have completed my internship
attachment period with Jamuna Bank Ltd. Preparing this report, I have collected information
from all available sources in the most realistic and professional way.
In writing this report, I have followed the instructions of my organization while at the same time
consulting my institute supervisor. I have endeavored to the utmost potential and limited
constraints to project the report as reflective as possible. I earnestly hope that this report will
meet your specification would be delighted to furnish you with any clarification if required.

Thanks and Regards

Yours Truly
------------------------------(Tazizur Rahman)
BBA program (1th Batch)
Roll no.01-18
Department of Management Information Systems
University of Dhaka

DECLARATION
I affirm that the Internship Report titled Functions of Foreign exchange of Jamuna Bank
Limited(JBL) being submitted for the internship part of BBA program is the original
work carried out by me. It has not formed the part of any other reports submitted as
internship report either in this or any other University.

Thanks and Regards

Yours Truly
------------------------------(Tazizur Rahman)
BBA program (1th Batch)
Roll no.01-18

I certify that the declaration made above by the candidate is true.

Md. Abul Kashem

Assistant Professor
Department of Management Information Systems
University of Dhaka

Supervisors Certification

The Internship Report

Of
Tazizur Rahman
Title as

Functions of Foreign Exchange of Jamuna Bank Limited (JBL)

Is approved and accepted in quality form.

Md. Abul Kashem

Assistant Professor
Department of Management Information Systems
University of Dhaka

Acknowledgement
Successful completion of any work needs inspiration, guidance, and financial and logical help
from others. My study is not behind this theme. In preparing this report, different persons have
extended their helping hands to me. It would have not been possible for me to prepare this report

without their help. I am very much fortunate to get the sincere guidance and supervision from a
number experienced persons.
First of all, I would like to express my indebtedness and deep sense of gratitude to my honorable
supervisor Asstt. Professor Md.Abul Kashem, Department of Management Information Systems,
University of Dhaka, whose scholastic supervision, kind and whole hearted guidance, warm
advice and encouragement have enabled me to prepare this report.
I am indebted to The Senior Assistant Vice President and Manager Md. Masudur Rahman of
Motijheel Branch of Jamuna Bank Limited help to do my internship. I also like to thank all
officers of Motijheel Branch for giving me suggestions and facilitating my internship report.
I would like to convey my thanks to all other officers for their valuable suggestions and
contributions that have helped me much in preparing this report.
I am grateful specially, with Sumon Kumer, Mahbubur Rahman, Md. Anisur Rahman who are
helped me to prepare this report by providing necessary data and information.

.
Tazizur Rahman
BBA Programs (1th batch)
Roll: 01-18
Department of Management Information Systems
University of Dhaka

Executive Summary
At present around 60 private Commercial Banks are operating in Bangladesh. Jamuna Bank
Limited is one of the leading third-generation banks in Bangladesh. Jamuna Bank Limited began
its journey on 3rd June 2001 under the companies Act, 1994. Jamuna Bank Limited concludes all
types of commercial banking activities. The core business of the bank comprises of working
capital finance, project finance, deposit banking, import, export and corporate finance. The bank
is also rendering personal (consumer) credit, services related to local and foreign remittances.
The banks strategy is to gradually cover the total arena of banking.

Jamuna Bank Limited is highly capitalized new generation Bank with an Authorized Capital and
Paid- up Capital of Tk 1600.00 million and Tk 390.00 million respectively. Currently the Bank
has 57 branches. More branches are planned to be opened soon.

Foreign Exchange department operates the imports and exports section. It informs the customer
how to open L/C for exporting and importing goods and provide different types of L/C, Import,
and Export Form to the customer. With the aim of providing efficient and reliable remittance
facility through banking channel to nonresident Bangladeshi, JBL is always trying to increase its
remittance business all over the world. JBL is trying to make a broad based remittance
arrangement with various reputed exchange houses.
General banking department performs the core function of bank operates the day to day
transaction. It deals with Account opening section, Check Clearing, Cash, Remittance and
account section. Credit department of this bank handles the Lease items, lease period, Lease
deposit, Credit policy and strategies etc. It informs the customer about its procedures of
sanctioning credit and others.
Jamuna Bank Limited has a strong management consisting of a number of experienced and skill
officials. A group of devoted and well- trained employees and working hard to render the best
service to the clients. The unattractive salary structure of the bank has been a major problem for
JBL throughout these years. Limited work force and lack of marketing activities have also
hampered the operations of JBL.

If the management of JBL can overcome the drawbacks and come- up with effective marketing
and financial strategies, Jamuna Bank Limited will soon turn into a leading Private Commercial
Bank in Bangladesh.

Chapter-1: Introduction

1.1 Rationale of the Study

As an indispensable part of BBA program, Department of Management Information Systems,

University of Dhaka, all the students have to undergo an internship program of three months
duration in any organization with a view to acquiring practical knowledge. Theoretical
Knowledge is not enough for a business student. There is a gap between the theoretical
knowledge and practical knowledge. Our internship program has been launched mainly to bridge
the gap. Under this program the students are required to write report based on observation and
experiences during the course of work. I was assigned to Jamuna Bank Limited at Motijheel
Branch to complete the program. This report is an outcome of a study on Functions of Foreign
Exchange of a Commercial Bank Limited. I was rotated more or less all the desks of JBL at
Motijheel Branch to learn their day to day activities.
Jamuna Bank Limited is the third generation market leader in banking sector in Bangladesh. The
company offers students the perfect opportunity to gain on-the-job experience by supporting and
guiding them during their internship program in many business areas. After all they know that
todays students can be tomorrows most efficient employees. Through internship students
become aware of organizational culture and learn how to show professional excellence to a great
extent. This learning helps them when they finally enter into practical field.

1.2 Objectives of the study

BBA program is designed to produce banking executives who are capable to handle 21 st
century banking. So, as a student of this program, we must have to know what is happening
in practice. So one may feel difficulty if he does not know what is happening in bank. To
eradicate this shortcoming, every student of the program is placed in banks after the
completion of theory. Most precisely we can identify the objectives of this report as follows:
o To apply theoretical knowledge in the practical field.

o To observe the functions of general banking section.

o To have exposure to the functions of credit section.
o To have exposure to the functions of foreign exchange section.
o To observe the working environment in commercial bank.
o To study the existing overall banker customer relationship.
o Finding formal channels.
o Analysis the trend of foreign remittance through formal channel.
o Money laundering activities.
o Problems of informal channels.
o Importance of formal channels.
o Finding the ways to increase foreign remittance in Bangladesh.

1.3 Research Methodology

The methodology of this report is totally different from many reports. I have emphasized on the
practical observation. Almost the entire consists of my practical observation. While preparing the
report, I have taken from two sources: Area of Study:
My project was Banking Activities of General, Foreign Trade & Credit Department of JAMUNA
Bank Limited with Special Reference to Motijheel Branch.

 Primary Sources:
Primary sources include interviews and conversation with officers and executives of the bank of
different divisions and department.

Secondary Sources:
Secondary sources of information include annual report, internet, general report, investment
manual, general banking manual, foreign exchange manual, Banking related Books, selected
books journals and other publication etc.

1.4 Organization of the Report

The sequence in which the internship report materials are arranged and bound just as follows:
1. Cover Page & Title Page
2. Letter of Submission
2. Declaration
3. Supervisors Certification
4. Acknowledgement

5. Executive Summery
5. Table of Contents
7. List of Table
8. List of Figures
10. Chapters
11. References
12. Appendices

1.5 Limitation of the Study

There were some problems while I doing internship. A wholehearted effort was applied to
conduct the internship and to bring a reliable and fruitful result. In spite of having the
wholehearted effort, there exit some limitations, which acted as a barrier to conduct the program.
The limitations were:a. Sometimes I was assigned to do some jobs without explaining why this work is to be
done. This situation has created a lot of problems to understand why a specific function is
being performed.

b. Another problem is concerned with data collection. JBL starts from 1999 , so there are
shortage of sufficient data for comparing. Moreover, the bank has supplied me the annual
report only for one year.
c. Another problem is time constraint. 45 days are not sufficient time to prepare a complete
internship report.

Chapter-2: Description of the Organization

2.1 About the Bank

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994
with its Head Office at Printers Building (2nd & 8th Floor), 5, Rajuk Avenue, Dhaka-1000. The
Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital
and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. Currently the
Bank has 50 branches, 3 SME branches & 1 SME center.
The Bank undertakes all types of banking transactions to support the development of trade and
commerce of the country. JBL's services are also available for the entrepreneurs to set up new
ventures and BMRE of industrial units.
Jamuna Bank Ltd., the only Bengali named new generation private commercial Bank was
established by a group of winning local entrepreneurs conceiving an idea of creating a model
banking institution with different outlook to offer the valued customers, a comprehensive range
of financial services and innovative products for sustainable mutual growth and prosperity. The
sponsors are reputed personalities in the field of trade, commerce and industries.
The Bank is being managed and operated by a group of highly educated and professional team
with diversified experience in finance and banking. The Management of the bank constantly
focuses on understanding and anticipating customers needs. The scenario of banking business is
changing day by day, so the bank's responsibility is to device strategy and new products to cope
with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress
within only two years. The bank has already ranked as one of the quality service providers & is
known for its reputation.
Jamuna Bank offers different types of Corporate and Personal Banking Services involving all
segments of the society within the purview of rules and regulations laid down by the Central
Bank and other regulatory authorities.

2.2 Board of Directors

Chairman
1 Al-Haj Md. Rezaul Karim Ansari
Vice Chairman
2. Gazi Golam Murtoza
Directors
3. Al-Haj M. A. Khayer
4. Engr. Md. Atiqur Rahman
5.Engr. A.K.M Mosharraf Hussain
6. Fazlur Rahman

7. Golam Dastagir Gazi Bir Protik

8. AL-Haj Nur Mohmmed
9. Md. Tajul Islam
10. Sakhawat Abu Khair Mohammad
11. Md. Belel Hossain
12. Md. Sirajul Islam Varosha
13. Md. Mohmadul Hoque
14. Farhad Ahmed Akand
15.Shaheen Mahmud
16.Kanutosh Majumder
17.Md. Ismail Hossain Siraj
18.A.S.M Abdul Halim(Independent Dirtector)
Sponsors
Mr. Md. Irshad Karim
Managing Director & CEO
Md. Motior Rahman

2.3 JBLs Vision, Mission & Corporate Strategy

Vision
To become a Leading Banking Institution by playing a significant role in the
development of the country.

Mission
The Bank is committed to satisfy diverse needs of its customers through an array of Products at a
competitive price by using state of the art technology and providing timely service so that a
suitable growth, reasonable return and contribution to the development of the country can be
ensured with a motivated and professional work-force.

Corporate Strategy

Employees of JBL share certain common values, which helps to create a JBL Culture.
The clients come first
Search for professional excellence.
Openness to new ideas and new methods to encourage creativity.
Quick decision making
Flexibility and prompt response
A sense of professional ethics

2.4 Strategies
To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund
To strive for customer satisfaction through quality control and delivery of timely
services
To identify customers' credit and other banking needs and monitor their
perception towards our performance in meeting those requirements.
To review and update policies, procedures and practices to enhance the ability to
extend better service to customers.
To train and develop all employees and provide them adequate resources so that
customers' needs can be reasonably addressed.
To promote organizational effectiveness by openly communicating company
plans, policies, practices and procedures to employees in a timely fashion

 To cultivate a working environment that fosters positive motivation for improved

performance
To diversify portfolio both in the retail and wholesale market
To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers.

2.5 Objectives of Jamuna Bank Limited

To earn and maintain CAMEL Rating 'Strong'
To establish relationship banking and improve service quality through development of
Strategic Marketing Plans.
To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
To introduce fully automated systems through integration of information technology.
To ensure an adequate rate of return on investment
To keep risk position at an acceptable range (including any off balance sheet risk)
To maintain adequate liquidity to meet maturing obligations and commitments.
To maintain a healthy growth of business with desired image.
To maintain adequate control systems and transparency in procedures.
To develop and retain a quality work-force through an effective human Resources
Management System.

 To ensure optimum utilization of all available resources

To pursue an effective system of management by ensuring compliance to ethical norms,
transparency and accountability at all levels.

2.6 Financial Performance of Jamuna Bank Limited

2.6.1. PROFIT
In 2009 JAMUNA Bank Limited has earned an operating profit of Tk 1914.25 million as against
Tk 1040.20 million of 2008. The profit after taxation & provision stood at Tk 923,123,207 in
2009 against Tk 479,437,923 of 2008.

0
2009

Operating Profit
Figure-01

Operating Profit

2.6.2. DEPOSIT AND DEPOSIT MIX:

In the year 2009, due to many uncertainties on economic front, significant pressures on economic
performance and among others the adverse impact of global economic crisis, declining trend in
interest rates, JBL was able to increase its customers confidence and mobilized a total deposits of
taka 32,571,285,187 against total deposit of taka 27,307,936,141.

Tot
al

epos
it

Figure-02

2.6.3. CAPITAL STRUCTURE:

JAMUNA Bank Ltd commenced its operation on June 03, 2001 with the authorized capital of
Tk. 1600.00 million ordinary shares of Tk 100 each and the bank started operation with a sound
capital base of Tk. 390.00 million. In 2009 the paid up capital of the bank stood at taka
1621882500. The quantum and break-up of capital of the bank are as follows:

Particulars
Tier I Capital
Paid up Capital
Statutory Reserve
Retained Earnings
Share Premium Amount
Tier II Capital
General Provision Maintained Against
Unclassified Loan & Advances
General Provision Maintained Against Off

Amount (Taka)
2009
2008
3054143494.00
2131020291.00
1621882500.00
1313265200.00
816479490.00
503839433.01
615781504.00
313915658.00
943521210.00
313318210.00
332637999.00

213800999.00

Operating Profit

Balance Exposure

147188811.00

84332811.00

916.46

674.65

Total capital (Tier I +Tier II )

Table- 01

2.6.4. LOANS AND ADVANCES

In FY2009 after the adverse impact of economic crisis declining trend in interest rate JBL,
continued to explore its area of credit and was successful to build up a sizable quantum of credit
which stood at take 32287.66 as on 31.12.2009, registered an overall increase by 53.48 percent
over 2008. The total credit as on 31st December 2008 was taka 21036.86.
.

Loan & Advances

40000
30000
20000
10000

Loan & Advances

0
2009 2008 2007 2006 2005

Figure-04

2.6.5 Total Assets

A total assets stood at taka 48730.95 in 2009 which is 53.98 % higher than that of 2008.The
significant increase in assets was achieved due to rise in loans and advances, investments, money
at call and short notice, cash and balances with other bands and financial institution.

Total Asset
60000

Total Asset

40000
20000
0
2009

2008

2007

2006

2005

Figure-05

Chapter-3: Literature Review

Foreign Exchange
Banks play a very important role in effecting foreign exchange transactions in a country. Mainly
transactions with overseas countries are respect of imports; exports and foreign remittance come
under his purview of foreign exchange transactions. Banks are the vital sector by which such
transactions are effected/settle. Central Bank records all sorts of foreign exchange transaction
effected by the Banks and other authorized quarters are to be reported regularly (viz. daily,
fortnightly, monthly quarterly, yearly etc) to Bangladesh Bank. In the JBL, Principal branch
Foreign Exchange
foreign exchange department plays a vital role to earn the banks maximum profit. This
department is classified according to their activities.
Export

Govt. Sector

Import

Back to Back

Remittance

Private Sector

Outward Remittance

Inward Remittance

Fig: Organization Structure of Foreign Exchange

JBL foreign exchange department has four sub-sections. Import section, export section. One
section for back to back and the fourth one is foreign remittance section. An AGM is the charge
of the import and foreign remittance section another AGM is in the charge of the export section.
After completing the General banking I have placed in the import section. After completing the
import section, I went to the export and then foreign remittance department. I had started my
work at import department from the issuing of UC desk. I have tried to put my experience in my
diary. My observations in this department are given below.

In Foreign Exchange division follow some transaction

Foreign Exchange Regulation Act 1947.
Import and Export Control Act 1950
Customs Act 1969

3.1. Import
While doing export-import or overseas business, some difficulties may arise. Because the person
who buys the goods (importer) and who sells the goods (exporter) is of different Countries.
So there may rise problems. Moreover, the transactions occur through different currencies. So for

minimizing the problem of fluctuation of the value of different currencies, International Chamber
of Commerce (ICC) established some regulation. which have to be followed through out the
world. These regulations are called UCPDC (Uniform Customs & Practice for Documentary
Credit). According to UCPDC, importer must open a UC for importing anything from abroad.
Letter of Credit is a guarantee given by the issuing bank to the advising bank in favor of the
exporter that in case of failure of giving payment by the importer, issuing bank will pay the
money to the advising bank.

Types of importer

Importer

Private Sector

Commercial
(Finished Products)

Industrial (raw
Materials, machineries etc.)

Actual Users

Fig: Types of Importers

Commercial Some client imports various types of goods for commercial purposes mainly
for

local consumption i.e for direct consumers and industries.

Industrial Some industrialist import raw materials and other indirect materials for their
own
industrial consumption as well as to supply thereof other industries.
Actual users This type of customers import various types of goods for their own
consumption.

3.2. Banks Involved In Foreign Exchange Transactions:

While importing, importer at first will open a UC from his country bank. This bank is called
issuing bank. Issuing bank will transact regarding this with another bank that is established at the
exporter's country. This bank is called advising bank.
After receiving the UC from the issuing bank, advising bank will call the exporter. Exporter will
collect it and may give it to the bank in which he maintains his transactions. This bank is called
negotiating bank. Negotiating bank wilt collect the money from another bank that is called
reimbursing bank.
While paying the UC money, issuing bank and negotiating bank will select another bank that is
acceptable to the both banks. This bank is called reimbursing bank.
Issuing bank will pay the money to the reimbursing bank. Negotiating bank will collect it from
the reimbursing bank. Reimbursing bank is a bank of exporter's country.

3.3. Procedure of Opening L/C:

L/C is a guarantee given by the issuing bank on behalf of the buyer to the advising bank making
the seller as beneficiary. The procedure of opening a L/C is
i.
ii.

Applicant has to apply for opening L/C by a prescribed form.

Applicant has to submit the Letter of Indent or Letter of Proforma Invoice.

Letter of Indent: Many sellers have their agent in seller's country. If the contract of buying is
made between the buyers and the agent of the sellers then it is called Letter of Indent.
.
Letter of Proforma Invoice: If the contract is made directly between the buyers and the
sellers then it is called the Letter of Proforma Invoice.
i.

Applicant has to submit IRC (Indentors Registration Certificate). It is a certificate

being renewed every year. This certificate is necessary if the contract is made
between the buyers and the agents of the sellers. IRC is of two types - COM and
IND. COM is given for commerce purpose and IND is given for industrial
purpose.
ii.

Applicant has to submit LCAF (Letter of Credit Authorization Form)

iii.

Applicant has to submit insurance document.

iv.

Applicant has to prepare FORM-IMP.

v.

Recently, there has been made a provision to give a certificate named TIN (Tax
Payers Identification Number). Taxation department issues this certificate. .

vi.

Then after proper scrutiny bank will open a L/C.

While opening L/C, importer must keep certain percent3ge of the document value in the bank as
margin.

3.4 Requirements for opening An L/C:

To open a L/C the requirements of an importer are:
a. He must have an account in JBL
b. He must have importers Registration Certificate (IRC)
c. Report on past performance with other bank, JBL collects this report for Bangladesh
Bank.
d. CIB (Credit Information Bureau) report for Bangladesh Bank.
e. A proposal approved by the meeting of executive committee of the bank, it is necessary
only when the L/C amount is small or there is no limit.
f. If the L/C amount is large or there is a limit, then an approval form Bangladesh Bank is
needed. Usually this approval is needed for amount more than one crore.

3.5. Foreign Exchange Mechanism

To have an import L/C limit, an importer submits an application to the Department of Agrani
Bank furnishing the following information:
1. Full particulars of bank account
2.

Nature of business

3. Required amount of limit

4. Payment terms and conditions
5. Goods to be imported
6. Offered security
7. Repayment schedule
A credit Officer scrutinizes this application and accordingly prepares a proposal (CLP) and
forwards it to the Head Office Credit Committee (HOCC). The Committee, if satisfied,
sanctions the limit and returns to the branch. Thus the importer is entitled for the limit.

3.6. The L/C Application:

JBL provides a printed form for opening of L/C to the importer. This form is known as Letter of
Credit Application form. A special adhesive stamp is affixed on the form. While opening, the
stamp is cancelled. Usually the importer expresses his desire to open the L/C quoting the amount
of margin in percentage. The importer gives the following information,
1. Full name and address of the importer.
2. Full name and address of the Beneficiary. .
3. Draft amount.
4. Availability of the credit by sight payment acceptance!
Negotiation deferred payment.
S. Time bar within which the documents should be presented.
6. Sales type (CIF/FOB/C&F)
7. Brief Specification of commodities, price, and quantity, indent no. etc.
8. Country of origin.
9. Bangladesh Bank Registration no.
10. Import License I LCAF no.
11. IRC no.
12. Account no.
13. Documents required.
14. lnsurance cover note / Policy no., date, amount.
I 5. Name and address of Insurance Company.

16. Whether the partial shipment is allowed or not.

17. Whether the Transshipment is allowed or not.
18. Last date of shipment.
19.1ast date of negotiation.
20. Other terms and conditions if any.
21.Whether the confirmation of the credit is requested by the beneficiary or not.

The above information are given along with the following documents--1. Proforma Invoice stating description of the goods including quantity, unit price etc.
2. The insurance covers note, issuing company and the insurance number.
3. Four set of IMP Form\

3.7. The Letter Of Credit Authorization (LCA) Form:

The Letter of credit authorization (LCA) form contains the followings1. Name and address of the Importer.
2. IRC no. and Year of renewal.
3. Amount of UC applied for (Both in figure and in word).
4. Description of item(s) to be imported.
5. ITC Number(s)/ HS Code.
Stamp and signature of the Importer with seal.

3.8. Form-IMP:
The Form-IMP contains the followings1. Name and address of the Authorized Dealer.
2. Amount of remittance to be permitted (i.e., UC amount).
3. LCA form number, Date, and Value in Tk.
4. Description of goods, quantity.
5. Invoice value in Foreign Currency (i.e., UC amount).
6. Country of Origin.
7. Port of Shipment.

8. Name of Steamer! Airline (i.e., By Road! By Ship! By Air).

9. Port of Importation.
Indentors name and address.
10. Indentors registration number with CCI & E and Bangladesh Bank.
11. Full name and address of the Applicant.
12. Registration number of the Applicant with CCI & E.
13. Type of lCAF.

3.9. Securitization of L/C Application:

The JBL Official scrutinizes the application in the following manner,
1. The terms and conditions of the L/C must be complied with UCPDC 500.
2. Exchange Control & Import Trade Regulation.
3. Eligibility of the goods to be imported.
4. The L/C must not be opened in favor of the importer.
5. Radioactivity report in case of food item.
6. Survey report or certificate in case of old machinery
7. Carrying vessel is not of Israel or of Serbia- Montenegro
8. Certificate declaring that the item is in operation not more than 5 years in case of car.

3.10. Precautions taken by officer before issuing L/C:

After submission of documentary Letter of Credit application form, the concerned officer
scrutinizes the terms and conditions that mentioned in application. He must check the following
things
1. 1. Whether the terms and conditions of L/C application are consistent with
Exchange Control and Import Trade regulation, UCPDC-5OO.
2. L/C must not be opened in favor of the importer or his agent
3. L/C must be signed by the importer agreeing all terms and conditions
a. mentioned in the application
4. Indenting registration number
5. Whether IMP form dully filled and signed

6. Validity of IRC
7. Insurance cover note with date of shipment
8. The HS code of the goods
9. The balance of the accounts of the importer
10. The goods are not from Israel and vessels to be used is not of Israel
11. The issuing officer will try to keep as much margin as possible

3.11. Amendment of Letter Of Credit:

Parties involved in a L/C, particularly the seller and the buyer cannot always satisfy the terms
and conditions in full as expected due to some obvious and genuine reasons. In such a situation,
the credit should be amended. JBL transmits the amendment by tested telex to the advising
bank .In case of revocable credit, it can be amended or cancelled by the issuing bank at any
moment and without prior notice to the beneficiary. But in case of irrevocable letter of credit, it
can neither be amended nor cancelled without the agreement of the issuing bank, the confirming
bank (if any) and the beneficiary. If the L/C is amended, service charge and telex charge is
debited from the party account accordingly.

3.12 Adding Confirmation:

Confirmation is given by the Add confirming Bank. An Add confirmation letter contains the
followings-1. L/C No.-2. L/C amount-3. Items to be imported
4. Name and address of the Applicant
5. Name and address of the Beneficiary6. Tenor-7. Date of shipment8. Date of Expiry
9. Port of Loading10. Port of Discharge
11. Charges on (which party)
12. Name of the Advising Bank
13. Name of Reimbursing Bank-14. Name of Confirming Bank

3.13. Dispatching the Import L/C:

After opening of import L/C, JBL principal branch dispatches the L/C. principal branch sends an
original copy of the L/C for negotiating and a copy to the advising bank for advising. It also
sends reimbursing bank for reimbursement.

3.14. Advising the import L/C:

Advising a L/C through a bank is a proof of apparent authenticity of the credit to the
seller/beneficiary. The advising process of a L/C consists of forwarding the original credit to the
beneficiary to whom it is addressed. Before forwarding the advising bank has to verify the
signatures of the officers of the L/C opening bank (JBL), and at the same time ensures that the
terms and conditions of the L/C are not in violation of the existing Exchange Control
Regulations. In such act of advising, the advising bank does not undertake any liability.

3.15: Lodgment & Retirement Section:

Lodgment means retirement of funds. If the documents receiving from the negotiating bank JBL
principal branch also scrutinize the documents. The officer carefully examines the following
points:
Invoice:
1. The invoice should contain quality t quantity t unit price, total value
2. The number of copies should exactly meet the requirement of the credit
3. The shipper must sign all the copies
Bill of lading:
1. It must be duly signed and endorsed.
2. It must state payment of freight. if the invoice price is on C&F basis the bill of lading
must be marked "Freight Paid" and freight is payable at destination. "Freight to. Pay" is
marked on BIL

Certificate of Origin:
It should provide evidence of the goods as specified in the credit. it is issued by the Chamber of
Commerce of beneficiary's country.
Bill of Exchange:
1. Is the Bill of Exchange drawn in the language of the credit?
2. Is the bill of exchange property prepared according to the credit conditions (on a sight or
time' basis) and drawn on the specified bank?
3. Is it property dated and signed
4. Is the amount in figures corresponded exactly with the amount in word?
5. Does it contain _I the prescribed notations and clauses?
Any other documents such as Weight and Measurement Certificate, Insurance Certificate.
Packing list etc. as stipulated in the credit must be examined before negotiation.
After scrutiny of these documents, if there is any discrepancy in the document" the officer will
promptly advise the importer and the negotiating bank and asks them to rectify these
discrepancies. But if there is no discrepancy. Then he will prepare some vouchers.

3.16. Payment Procedure of the Import Documents:

This is the most sensitive task of the Import Department. The Officials have to be very much
careful while making payment. This task constitutes the following:
A. Date of payment:
Usually payment is made within seven days after the documents have been received. If the
payment is become deferred, the negotiating bank may claim interest for making delay.
B. Preparing sale memo:
A sale memo is made at B.C rate to the customer. As the T.T & O.D rate is paid to the ID, the
difference between these two rates is exchange trading. Finally, an Inter Branch Exchange
Trading Credit Advice is sent to ID.

C. Requisition for the foreign currency:

For arranging necessary fund for payment, a requisition is sent to the International Department.
D. Transmission of telex:
A telex is transmitted to the correspondent bank ensuring that payment is being made.

3.17 Export Section

In the Export section, two types of L/C s are opened-!
Back to Back L/C
Export L/C

3.19 Back: To Back L/C:

A back-to-back mechanism involves two separate L/Cs. One is master export L/C and another is
back-to-back L/C. on the strength of Master export L/C Bank issues Back to-Back L/C.
Back-to-Back L/C is commonly known as Buying L/C. on the contrary. Master Export L/C is
known as Selling.

3.20Features of Back to Back L/C:

Is an import L/C to procedure goods raw materials for further processing.

Is opened based on Export L/C.
Is a kind of Export Finance?
Export L/C is at Sight but Back-to-Back L/C is at Usance.
No margin is required to open Back-to-Back L/C.

3.21. Checklist to open Back to Back L/C:

Application is registered with CCI & E and has bonded warehouse license.
The Master L/C has adequate validity period 'and has no defective clause.
L/C value shall not exceed the admissible percentage of net FOB value of relative
Master L/C.
Usance period will be up to 180 days.
Papers required opening Back-to-Back L/C:
Import Registration Certificate & Export Registration Certificate.
L/C Application & LCA form.
Insurance Policy a IMP form.
In addition to above following papers are required for Readymade Garments IndustryBonded Warehouse license.
Quota allocation letter from EPB (where applicable)
Letter of disclaimer from landlord if rented premises.

. Steps to issue Back-to-Back L/C:

Obtain all required papers.
Check the credit limit.
Prepare offering sheet if regular credit line is not available. a. Mark lien on the master
L/C.
Issue the L/C.

3.22 Payment under Back to Back L/C:

a) Payment at maturity out of exports proceeds.
b) In case of export failure or non-realization/short realization of export proceeds,
forced loan i.e. OAP has to be created in order settle the Back-to-Back L/C
payment.

3.23. Precautionary measures:

a Inclusion the clause for Pre-Shipment Inspection Certificate. a Shipping guarantee under no
circumstances.
a) Discrepant documents shall not be accepted.
b) Proper care regarding amendments of Master L/C.

The flow chart on Back-to-Back L/C Mechanism:

Buyer USA Ltd. Instruct
his bank to issue the
Export LlC in favor of
Bangladesh Garments ltd

JBL issues Back

to Back L/C and forwards
the same to Taiwan
Textile Ltd. through a
Taiwanese Bank

USA bank issues the L/C and

Forwards the same to
Bangladesh
through a
Bank.

garments
Bangladeshi

I Bangladesh Garments Ltd. Submits his

Export L/C with a request to his bank, say
JBL for lien of the Export L/C and
to issue Back to Back L/C in favor of
Taiwan Textile Ltd

Back-to-Back L/C is essentially a self-liquidating transaction. Usually a Bank issuing Back to

Back L/C has no collateral or comfort to rely upon, except the master L/C. therefore Bank
officials concerned, should be fully aware of the inherent risk involved in this type of businesses
and are advised to issue Back to Back L/C only for the well known customer of the Bank and of
undoubted integrity.

3.24 Reporting To Bangladesh Bank:

At the end of every month, the reporting regarding the following information is mandatory.
A. Filling of E-2IP-2 schedule of 5-1 category; which covers the entire month
Amount of import, category of goods. Currency, country etc.
B. Filling of E-3/P-3 schedule for all charges, commission with TIM form.
C. Disposal of IMP form, which includes,

1. Original IMP is forwarded to Bangladesh Bank with invoice and Indent.

3. Duplicate IMP is kept with the Bank along with the bill of entry Certified Invoice.
4. Triplicate IMP is kept with the Bank for office record.
5. Quadruplicate is kept for submission to Bangladesh Bank in case of imports where
documents are retired.

3.25.Export L/C
The other type of L/C facility offered by JBL Export L/C. Bangladesh exports a large quantity of
goods and services to foreign households. Readymade textile garments (both knitted and woven),
jute, jute-made products, frozen shrimps, tea are the main goods that Bangladeshi exporters
exports to foreign countries. Garments sector is the largest sector that exports the lion share of
the country's export. Bangladesh exports most of its readymade garments products to U.SA and
European Community (EC) countries. 0Bangladesh exports about 40% of its readymade
garments products to U.SA Most of the exporters who exports through JBL are readymade
garment exporters. They open export L/Cs here to export their goods, which they open against
the import UCs opened by their foreign importers.

3.26Formalities for Export L/C:

The export trade of the country is regulated by the Imports and Exports (control) Act, 1950.
There are a number of formalities which an exporter has to fulfill before and after shipment of
goods. These formalities or procedures are enumerated as follows.
I.

ERC: The exports from Bangladesh are subject to export trade control
exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports
(CCI & E). No exporter is allowed to export any commodity permissible for export from
Bangladesh unless he is registered with CCI & E and holds valid Export Registration
Certificate (ERe). The ERC is required to be renewed every year. The ERC number is to
be incorporated on EXP forms and other documents connected with exports.

2. Obtaining EXP: After having the registration, the exporter applies to JBL with the trade
license, ERC and the Certificate from the concerned, Government Organization to get" EXP.
If the bank is satisfied, an EXP is issued to the exporter. An EXP-Form contains the
following particulars,
a) Name and address of Authorized Dealer
b) Particulars of the commodity to be exported with code
c) Country of destination
d) Port of destination
e) Quantity
f) L/C value in Foreign currency
g) Terms of Sale
h) Name and address of Importer! Consignee
i) Bill of Lading! Railway Receipt! Airway Bill! Truck Receipt! Post Parcel Receipt
no. and date
j) Port of Shipment! Post Office of Dispatch
k) Land Custom Post
l) Shipment Date
m) Name of the Exporter with address
n) CCI & E's Registration number and date of the Exporter
o) Sector (Public or Private) under which the Exporter falls.
3. Securing the order: Upon registration, the exporter may proceed to secure the export order.
This can be done by contracting the buyers directly through correspondence.

4. Signing of the contract: While making a contract, the following points are to be
mentioned,

Description of the goods.

Quantity of the commodity
Price of the commodity. Shipment
Insurance and marks
Inspection
Arbitration

The following_ points are to be looked for,

The terms of the L/C are in conformity with those of the contract. The L/C is an irrevocable one,
preferably confirmed by the advising bank. The L/C allows sufficient time for shipment and a
reasonable time for registration. If the exporter wants the L/C to be transferable, divisible and
advisable, he should ensure those stipulations are specially mentioned in the L/C.
5.Procuring- the materials: After making the deal and on having the L/C opened in his favor, the
next step for the exporter is to set about the task of procuring or manufacturing the contracted
merchandise.
6. Registration of sale: This is needed when the items proposed to be exported are raw jute and
jute goods.
8Shipment of goods: The following are the documents normally involved at the stage of
shipment,
i.
ii.
iii.
iv.
v.
vi.

EXP Form
photocopy of registration certificate
photocopy of the contract
photocopy of the L/C
Customs copy of ERF Form for shipment of jute goods and EPC Form for raw jute.
Freight certificate from the bank in case of payment of the freight at the port of lading is
involved.
vii. Railway receipt, Berg Receipt or Truck Receipt.
viii. Shipping instructions.
ix. Insurance policy.
After those, exporter submits all these documents along with a letter of Indemnity to JBL for
negotiation. An officer scrutinizes all the documents. If the document is a clean one,

3.27. Export 'Bill Scrutiny Sheet:

The Export Bill Scrutiny Sheet contains the following particulars,

1. Exporter's name
2. Presentation date of documents.
3. L/C no.
4. Expiry date
5. L/C amount available
6. The date within which the documents to be presented
7. BU AWB! FCR dated
8. Shipment date in the L/C Draft date
9. Invoice number and date
10. Export L/C no, date, issued by
11. Documents required in the L/C contract
12. Liability position
13. Discrepancies
14. Calculation of Bill amount (Exporter's Retention Quota, Commission,
and Margin).

Documentary credit is following types:

Revocable credit:
A revocable credit is one where the issuing banks at liberty to revoke i e. cancels the credit at any
time.
Irrevocable credit:
An irrevocable credit is a documentary credit, which cannot be revoked, varied or
Changed/amended or cancelled without the consent of all parties- buyer (Applicant), seller
(Beneficiary), Issuing Bank, and Confirming Bank (in case of confirmed L/C). As per Article
9(a) of UCPDC 500, an irrevocable credit constitutes a definite undertaking of the Issuing Bank,
provided that the stipulated documents are presented to the Nominated Bank or to the Issuing
Bank and that the terms and conditions of the credit are complied with.

Chapter 4: Finding & Data Analysis:

4.1 Import:

The total business handled by the bank in 2009 was taka 46684.73 million compared to taka
30311.71 million in the preceding year registering a growth of taka 116373.02million 54.02
percent. A sizable L/Cs were also opened by the bank in the year under review. The import items
include machinery, consumer goods, fabrics, accessories food items etc.

2500
2000
1500
1000
500
0

Import
Year

Tk(million)

2009

46685

2008

30312

2007

22192

2006

15458

2005

12152

4.2 Export:
The bank handled export business worth 21405.94 million in the under report. In 2008 total
export business handled by the bank was an increase of taka 18617.43 million . Thus there was
an increase of taka 2789.5 million in the export business handled by the ban k 14.98 percent
over the preceding year . The major export item was ready made garments agro based products
etc.

Export
Year

Tk(million)

2009

21407

2008

18617

2007

13990

2006

11584

2005

6522

10
9
8
7
6
5
4
3
2
1
0

4.3Correspondent Relationship:

Over the years the bank has developed beneficial relationship with the foreign
correspondents worldwide to facilitate the international trade operations of the bank. Jamuna
bank limited has so far established relationship with most leading international banks in 107
countries through 735 correspondents to cover all important financial centers of the world.
The bank endeavors to increase the network of correspondent relationship with more
overseas banks, financial institutions to cater to the needs of customer globally. Drawing
arrangement with overseas exchange houses have already been established for bringing in
home remittance through banking channel. Efforts are underway to expand correspondent
relationship further to facilitate the banking growing foreign trade transaction.

4.5.Remittance Business & Exchange House:

Jamuna Bank Ltd. has a network of branches in Bangladesh and more branches are
going to be added to network soon. Remittance services are available at all branches
and foreign remittances may be sent to any branch by the remitters favoring their
beneficiaries. Remittances are credited to the account of beneficiaries instantly
through Electronic Fund Transfer (EFT) mechanism or within shortest possible time.
Jamuna Bank Ltd. has correspondent banking relationship with all major banks
located in almost all the countries/cities. Expatriate Bangladeshis may send their hard
earned foreign currencies through those banks or may contact any renowned banks
nearby ( where they reside/work) to send their money to their dear ones in
Bangladesh. To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank
Ltd. has Taka Drawing Arrangement with many banks/exchange companies in
different countries. The expatriate Bangladeshis may send their money in BDT
through the branches/subsidiaries of Jamuna Bank
In order to encourage wage earner for remitting funds through banking channel and ensure
smooth facilities of remittance JBL is making constant effort to make arrangements with
reputed exchange house all over the world. The banks such effort are directed towards
increase of remittance business so as to enhance the inflow of foreign currency. With this end
in view JBL has already signed arrangement with the following remittance companies

Placid N.K. Corporation U.S.A

Euro Banglad Money Transfer (UK) Ltd
Raffles Exchange (U.K) Ltd U.K
Money Link (U.K) Ltd U.K
Money Gram Payment Systems, USA
Rumana Money Services,U.K
Zenj Exchange Co.,Bahrain
Fast Remit Sdn Bhd,Malaysia

The bank is going to have accord with some other reputed exchange houses operating in the
different financial hubs of the world. For providing supports to NRBs Remittance cell has
already been established in the head office which is equipped with modern technology for
ensuring prompt delivery of remittance services & replies to the wage earner and
beneficiaries queries. Total remittance business was 2658 million in 2009.

4.6.Offshore Banking Unit:

An offshore banking unit of a bank is a deemed foreign branch of the parent bank situated in
Bangladesh. The impressive growth of the economy during the last couple of year and the
facilities provided to the foreign investors through opening of special export have attracted
lot of foreign investors in the country . Jamuna bank ltd got Bangladesh ban permission
against recommendation of BEPZA. To establish its off shore banking unit at its Gulshan
branch Dhaka premise. The functions of OBU will be started very soon.
The OBU unit will be able to mobilize deposits from & extend credit facilities to the
industries of all the EPZs as well as obtain foreign currency from foreign bank &
correspondent bank.

4.7.100% Owned Exchange House Abroad:

Jamuna bank limited got Bangladesh Banks permission for establishing 100% owned
exchange houses in following regions of following regions of following countries.

Country

Regions

United Stated

Malaysia

London
Manchester
Birmingham
Kuala Lumpur
Penang

It will help augment inflow of foreign remittance into the country for helping
the expatriates to route money to near and dear ones beneficiaries staying in
Bangldesh through Banking Channel. The process for establishing the same
is in the progress.

4.8.Foreign Exchange Risk:

Foreign Exchange risk is defined as the potential change in earning due to change in market price
.The foreign exchange risk of the bank is minimal as well as the transactions are carried out on
behalf of the customers against underlying L/c commitments and otherremittance requirementss.
No foreign exchange purpose on banks accountn was conducted during the year .All Nostro
account reconcilied on a monthly basis and outstanding entry beyond 30 days is reviewed by the
management for itssettlement. Steps have been implemented and some are in under process.

4.9.Export Cash Credit:

Year

Export Cash
Credit

2009

53219417

Export Cash Crerdit

3000000

Export
Cash
Crerdit

2000000

2008

37940992

1000000
0
20092008

4.10.Exchange Gain:
Details

Year 2009

On foreign 1419601

Year 2008
1726868

Currency
Other

737934

-------

Exchange
Net

2257535

1726868

Exchange
Gain

Net Exchange Gain

2500000
2000000
1500000
1000000
500000
0
2009

2008

4.11.Nostro account related to foreign exchange transaction

Nostro account means our account with you. A Nostro account is a foreign currency account of
a bank maintained its foreign correspondents abroad. For example, US Dollar Account of JBL
maintained with Citibank, N.A, New York, USA is a Nostro account of JBL.

4.12.Mode of payment of export bills under L/C:

At Sight Payment Credit

Deferred Payment Credit

Payment methods
Under L/C

Negotiation Payment Credit

At Sight Payment Credit:

In a Sight Payment Credit, the bank pays the stipulated sum immediately against the
exporterspresentation of the documents.
Negotiation Credit

Acceptance Payment Credit

In Negotiation credit, the exporter has to present a bill of exchange payable to him in
addition to other documents, that the bank negotiates.

Deferred Payment Credit

In deferred payment, the bank agrees to pay on a specified future date or event, after
presentation of the export documents. No bill of exchange is involved. In NCCBL, payment
is given to theparty at the rate of D.A 60-90-120-180 as the case may be. But the Head office
is paid at T.T clean rate. The difference between the two rates is the exchange trading for the
branch
Acceptance credit
In acceptance credit, the exporter presents a bill of exchange payable to him and drawn at the
agreed tenor (that is, on a specified future date or event) on the bank that is to accept it. The
bank signs its acceptance on the bill and returns it to the exporter. The exporter can then
represent it for payment on maturity. Alternatively he can discount it in order to obtain
immediate payment.

4.13.Findings of Foreign exchange Department

Foreign exchange dealings are very sensitive because it involves currency transfer from
one currency to another and have to have very cautious for maintaining the formalities.
But in foreign exchange section L/C opening, BLC creation, Lodgment all these are
maintained manually in different register which is lengthy & cost worthy. It is not a good
practice.

 In case of Export L/Cs, sometimes customers insist the Bankers to give their payments
through their documents in spite of discrepant thereof. In some cases, Bank has to give
payment to these customers for different reasons but taking indemnity bond.
Financing to the international trade is very crucial to the economy and as well as it is
risky. Some time the government impose restriction to import some products and to
export some products. But some time it may happen that the customers under invoice to
import goods from outside and vice versa.
Lack of some technical knowledge of International Trade Financing.

4.14.Methods of Overcoming Miss masses:

For L/C opening, BLC creation and lodgment all these are dealings
should be done
careful and all the processes should be done with computer.

The Bank should be as strict as possible about giving payments

against discrepant
documents without hurting the customers.

The Bank should not finance to that people who under invoice in case
of importing &
exporting if it understands. The Bankers must be aware about this
unwanted happening.
And they should observe the invoice to open a letter of Credit (L/C).

 The bank should try to arrange more training programs for their
officials. Quality training
will help the officials to enrich them with more recent To provide quality
service to the customer it is necessary to have trained team of staff.

Chapter Eight
SWOT Analysis
SWOT analysis is the detailed study of an organizations exposure and potential in perspective of
its strength, weakness, opportunity and threat. This facilitates the organization to make their
existing line of performance and also foresee the future to improve their performance in
comparison to their competitors. As though this tool, an organization can also study its current
position, it can also be considered as an important tool for making changes in the strategic
management of the organization.

STRENGTHS:
JAMUNA Bank Limited is managed by highly professional people.
The management of the bank constantly focuses on the understanding and anticipating
customers needs and solution thereof.
JAMUNA Bank Limited has already achieved tremendous progress within a short period of
its operation. The bank is already ranked as one of the quality service providers and known
for its reputation.

The top management officials of Jamuna Bank Limited have years of banking experience,
skill, and expertise will continue to contribute towards further expansion of the bank.

JAMUNA Bank Limited has already achieved a high growth rate accompanied by an
impressive profit growth rate in 2005. Its operating profit is Tk 419.94 million as against Tk
308.83 million of 2004. The number of deposits and the loans and advances are also
increasing rapidly.

 JAMUNA Bank has an interactive corporate culture. The working environment is very
friendly, interactive and informal. And, there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture provides as a
great motivation factor among the employees.
JAMUNA Bank has the reputation of being the provider of good quality services too its,
potential customers.
It always focuses on low and no cost deposits which will the growth of the bank.
The bank always eagerness to introduce new deposit scheme and has already introduced
highly lucrative and attractive deposit scheme to encourage and The bank credit facilities
mainly concentrated on trade finance, Agriculture related sector, project finance, whole and
retail trading etc.
The Bank introduced on line branch banking.

WEAKNESS:
Lack of experience employees in junior level of management. .
The bank failed to provide a strong quality-recruitment policy in the lower and some mid
level position. As a result the services of the bank seem to be Deus in the present days.
The poor service quality has become a major problem for the bank. The quality of the
service at JAMUNA Bank is not higher than the Dhaka Bank, Brac Bank or Dutch
Bangla Bank etc. But the bank has to compete with the Multinational Bank located here.
The Bank does not observe social commitment strongly.
Most of the branches are not well decorated.
No have any own training institution for improving the quality of the employees in this
bank.
In terms of promotional sector, JAMUNA Bank has to more emphasize on that. They
have to follow aggressive marketing campaign.

OPPORTUNITY:
In order to marinating the internal control system, JAMUNA Bank has to expand it credit

policy guidelines and procedures for continuous monitoring and upgrading of daily
banking activities. The management can consider options of starting merchant banking
or diversify into leasing and insurance sector.

Opportunity in retail banking lies in the fact that the countrys increased population is
gradually learning to adopt consumer finance. The bulk of our population is middle class.
Different types of retail lending products have great appeal to this class. So a wide variety
of retail lending products has a very large and easily pregnable market.
There are many banks in our country. In this competitive environment JAMUNA Bank
must expand its product line to enhance its sustainable competitive advantage. In that
product line, they can introduce the own ATM to compete with the local and the foreign
bank. They can introduce credit card and debit card system for their potential customer.
As a third generation renown bank, Jamuna bank can increase its network with most
international banks and financial institutions

THREATS:
All sustain multinational banks and upcoming foreign, private banks posses enormous
threats to JAMUNA Bank Limited. If that happens the intensity of competition will rise
further and banks will have to develop strategies to compete against an on slough of
foreign the banks.
The default risks and delinquent of all terms of loan have to be minimizing in order to
sustain in the financial market. Because this risk leads the organization towards to
bankrupt. JAMUNA Bank has to remain vigilant about this problem so that proactive
strategies are taken to minimize this problem if not elimination.

The low compensation package of the employees from mid level to lower level position
threats the employee motivation. As a result, good quality employees leave the

organization and it effects the organization as a whole.

Chapter Nine
FINDINGS, RECOMMENDATIONS AND CONCLUSION
9.1 FINDINGS

Some customers do not understand account opening form & L/C opening form

Some customers are not interested or not able to write D.D., Check, pay order voucher.

In the present market situation, where the competition among all private commercial
banks are very intense and high, the management of Jamuna Bank is failing to find out its
major weaknesses.

The major weakness of Jamuna Bank Limited is its unattractive salary package. The
salary package that Jamuna Bank Limited offers to the employees is relatively poor
comparing to other competing banks in the market.

JBLs banking strategy is not arranged in such way that provides excellent service to its
customers and employees.

They have to transfer data from branch to branch and branch to head office by using peon
and others.

According to some clients opinion introducer is one of the problems to open an account.
If a person who is new of the city wants to open account, it is a problem for him/her to
arrange an introducer of SB or CD accounts holder.

Jamuna Bank Limited fails to recruit expert and skilled person because of this low salary
structure.

There are some congested branches where modern technical equipment such as computer
and manpower are not sufficient. As a result banking activities are not done properly.

JAMUNA Bank doesnt give their attention on advertisement. As a competition market it

is too much important for any organization to increasing their advertisements procedure.

JAMUNA Bank Limited has limited workforce. As a result most of the employees are
under huge workload and have to work extra hours though no overtime facility is
provided to them. So the cause of serious employees dissatisfaction and result in
employee turnover.

Jamuna Bank Limited cannot provide A.T.M service to its customers properly.

9.2 RECOMMENDATIONS

Trying to make those people understand who do not know how to open a bank
account.

JBLs human resources management policy has to identify the right combination
of skills, knowledge, behavior and values and utilize them for the welfare of the bank.

If they are established strong networking system with their branches then it can easily
transfer data within short time.

If they cancel the introducer system then they can collect more deposit through new
account and it also satisfied the customer.

To make the process easy and quick the whole system should be computerized and take
modern communication media for example e-mail, fax, Internet should be used.

Its has to adopt the most recent technologies to improve the quality of service.

A group well-trained and expert work force is dedicated to render the best service to the
customers.

Its working environment has to excellent for its employees and customers

The management has to introduce the overtime facility for the employees who work hard
extra hours after their office time.

The management of Jamuna Bank Limited has to give their attention to take necessary
steps to improve salary structure.

The management of Jamuna Bank Limited must be identified the weakness point to have
in competition in banking sector.

9.3 CONCLUSION
A Lot of new commercial bank has been established in last few years and these banks have made
this banking sector very competitive. So, now banks have to organize their operation and do their
operations according to the need of the market. Banking sectors no more depends on a traditional
method of banking. In this competitive world this sector has trenched its wings wide enough to
cover any kind of financial services anywhere in this world. The major task for banks, to survive
in this competitive environment is by managing its assets and liabilities in an efficient way.
As an internee student in JAMUNA Bank Bangladesh Limited at Motijheel Branch, Dhaka, I
have truly enjoyed my internship from the learning and experience viewpoint I am confident that
1.5 month internship program at JAMUNA Bank Bangladesh Limited will definitely help me to
realize career in the job market.
During the course of my practical orientation I have tried to learn the practical banking to realize
my theoretical knowledge, what I have gathered and going to acquire from various courses. It is
great pleasure for me to have practical exposure of JAMUNA Bank Limited, because without
practical exposure it couldn't be possible for me to compare the theory with practice.
Through the departments and sections are covered in the internship program, it is not possible to
go to the depth of each activities of branch because of time limitation. So objectives of the
internship program have not been fulfilled with complete satisfaction. However, highest effort
has been given to achieve the objectives of the internship program.
So in conclusion it can be said that every organization has its positive as well as negatives and in
case of JAMUNA Bank Bangladesh Limited existence of the later one is less than the earlier one
and as the management is determined to reach the pick of success it seems that in near future the
negatives will be eliminated. Six years is a very short span of time and the organization, which
can establish itself as one of the most reputed private commercial Bank in the country within this
short period deserves special credit and with their able leaders JAMUNA Bank will reach the
highest level of success very shortly. I wish the bank all success prosperity in their field.

BIBLIOGRAPHY

1. Annual Report of Jamuna Bank Limited 2009: Published by: Head office of
Jamuna Bank Limited, Dhaka.
2. Credit Manual: Published by: Head office of Jamuna Bank Limited, Dhaka
3.
Foreign Exchange Manual: Published by: Head office of Jamuna Bank
Limited, Dhaka.
4. Joel Besis (2001): Risk Management in Banking, 3rd edition, Newyork, Jhon
Wiley Ins
5. Transaction in foreign exchange: Principles and Practice. Written by: M. A yusuf
and M. R Sinha
6. George H Hempel and Donald G Simonson (1998), Bank Management and Cases
5th edition. Newyork, South- western
7. Web: www.jamunabankbd.com
.
8. Various files of Motijheel Branch of JBL

APPENDIX

1. Figure 01, Profit rate ( Page 7)

2. Figure 02, Deposit ( Page 8)
3. Figure 03, Loans and Advances (Page 9)
4. Table 01, Quantum and Break- up of Capital ( Page 8)
5. Table 02, Comparative Deposit Mix ( Page 9)
6. Table 03, Closing Position of Chistia Branch (Page 10)
7. Table 04, Interest rate and service charges ( Page 12)
8. Table 05, Lease Period (Page 23)
9. Table 06, Schedule of Loan repayment (Page 26)