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1.1 Introduction

Janata Bank Limited, the 2nd largest State Owned Commercial Bank (SCB) in Bangladesh, is playing
pivotal role in overall financial activities of the country. The Bank emerged as Janata Bank by
combining the erstwhile United Bank Limited and Union Bank Limited under the Banks Nationalization
Order (Presidents Order 26) of 1972 and was restructured as a limited company in November, 2007.
Since inception in 1972 the Bank has commendably contributed to the socio-economic development of
Bangladesh and helped structuring solid financial ground of the country as well. Janata Bank runs its
business with 905 branches across the country including 4 overseas branches in United Arab Emirates.

In the age of globalization, the importance of banking sector is beyond description .banking sector is
going ahead with the improvement and invention of new services and offerings to gather and retain more
customers. Besides other banking activities remittance has become an essential part of a banks daily
activity to perform. In our daily life we usually use the tools like DD, TT, MT etc in order to sent money
from one place to another. Again, we know that foreign remittance has a great impact on our national
economy. Internship in janata bank ltd. (jatrabari corporate branch, Dhaka) has brought me the
opportunity to know details about various tools of remittance. At the vary beginning of the internee
period, I was too much interested about A/C opening and loan sanctioning system of a bank like janata
bank ltd. But in a few days I recognized that my branch deals with remittance more than any other
banking activity. Working with remittance system in daily banking day turns my attention in remittance
which creates the background of the study.

1.2 Origin of the Report

The Internship is very helpful to bridge the gap between the theoretical knowledge and real life
experience as the part of the BBA program. This report has been designed to have a practical experience
through the theoretical understanding. For the completion of the report I have been placed in Janata Bank
Limited, jatrabari corporate branch, Dhaka. I decided to work on the practices of remittance activities of
the bank. The report focuses on remittance activities in local and foreign banking.

I prepared the internship report under the supervision of our honorable teacher Prof. Dr. Md. Mosharraf
Hossain. I have always tried my best to reflect my experience of the practical incidence in this report.

1.3 Objective of the Report

1.3.1 Broad Objective:

The main objective of the report is to get a clear idea about the significant contribution of remittance in
nations economy as well as Janata Bank Limited and make an elaborate analysis on the banking activities
towards the foreign remittance.

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1.3.2 Specific Objective:

The objective of the project is to make familiar students with the real business situation, to compare them
with the business theories & at last stage make a report on assign task. The specific objectives of this
report are:

To know the remittance activities of Janata Bank Ltd.

To know the contribution of remittance in economy.
To know the process of collecting the local remittance.
To know the process of collecting the foreign remittance.
To know the function of foreign exchange
To make suggestions for policy recommendation

1.4 Scope of the Report

This report is a part of academic program. Working in the Janata Bank Ltd, get the opportunity to gain
knowledge of different part of banking system. The BBA program having 132 credits in total, in which it
contains six (6) credits hours on the internship program. The period of internship program has set for two
months. The scope of the study has in the organization, Janata Bank Ltd. The study was confined only on
the Janata Bank Limited, jatrabari corporate branch, Dhaka. The time learned lot of things, remittance
Activities like about the Export/Import L/C, Back to Back L/C, Document, remittance, DD, TT, MT etc
thats why this report is a close focus on these operation of the branch.

1.5 Limitation of the Study

Some data and information for obvious reasons that could be very much essential. From the beginning to
the end, the study has been conducted with the intention of making t as a complete and truthful one. The
report is an overall view remittance Activities of Janata Bank Ltd, jatrabari corporate branch, Dhaka. But
there is some limitation for preparing this report which is mentioned below:-

Time Limitation: It was one of the main constraints that affected covering all aspects of the study.
Lack of Secondary Information: The data is not much available over the net. Secondary source of
information was not sufficient for the completion of the report.
Limitation of the Scope: Much confidential information was not disclosed by respective personnel of
the department. These are,

Difficulty in accessing latest data of internal operations.

Some information has withheld to retain the confidently of the Bank.
Clients were very busy with their own works in the bank.
Large-scale research was not possible due to constrains and restrictions posed by the
Part of the original structure was written from individual perception and it may vary from person
to person.
Web site of organization isnt up to date to gather valuable information.

With all this limitation tried best to make this report as best as possible. So readers are requested to
consider these limitation while reading justifying any part of my study.
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1.6 Analysis Techniques
Both qualitative and quantitative methods were applied for preparing this report. The data were analyzed
and presented by Microsoft excel and shows percentage, graphical presentation and different types of
charts. Best effort was given to analyze the numerical findings.

1.7 Required Data

I have mainly focused on numerical data in preparing the report. Also I have theoretical portion as the
demand of the report. Analyzing remittance management of the bank, both theoretical and technique
knowledge are necessary for execution. Then everything with accuracy, I have analyzed and made

1.8 Methodology of the Study

The report is descriptive in nature. The report would be based on a details discussion on remittance
Activities of Janata Bank Limited, jatrabari corporate branch, Dhaka. Throughout the report, The use
different types of research method to find out proper and correct information. For preparing this internee
report, jatrabari corporate branch, Dhaka experience form different department of the remittance
Activities of Janata Bank Limited was used.

1.8.1 Study Design:

This study is descriptive in nature and so was conducted using assessment of different historical data
along with other sources.

1.8.2 Sources of Data:

Primary Sources-

Simple Depth interview technique was used by asking number open-ended questions to collect
the information.
Face to face conversation with the official staff.
Practical deskwork.
Relevant file study as provide by the concerned officer.
Personal observation.

Secondary Sources-

Annual Report (2013 and 2014) of Janata Bank Ltd.

Investment Manual (2014) of Janata Bank Ltd.
Website of the Janata Bank Ltd.
Various book articles about remittance activities.
Published or unpublished or personally collected data from officers.
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Local Office and Head office of the Janata Bank Limited.
Different journal regarding Janata banking.

1.9 Flow Chart of the Study


Designing the Layout

The Approach

Theatrical Cosideration
The literature Review


Primary Sources Secondary Sources

Collecting Information


Preparing The Report

Submission The

Jagannath University Figure-1.1: Flow Chart of the study

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Chapter 02
History of Banking in Bangladesh

2.1 History of the Banking

The banking sector of Bangladesh comprises of four categories of scheduled banks. These are
Nationalized Commercial Banks (NCBs), Government owned Development Finance Institutions (DFIs),
Private Commercial Banks (PCBs) and Foreign Commercial Banks (FCBs). The number of banks
remained unchanged at 55 in 2013. These banks had a total number of 6562 branches (Bangladesh Bank,
Access to banking services for the population has improved during the last three decades. While
population per branch was 57,700 in 1972, it was 19,800 in 1991. In 2001 it again rose to 21,300, due to
winding up of a number of branches and growth in population. Compared to Indias 15,000 persons per
branch in 2000, Bangladesh is not far behind in this regard. This indicates that access to the banking
system in the country is not a significant problem (BBS, 2003).

After the independence, banking industry in Bangladesh started its journey with 6 nationalized
commercialized banks, 2state owned specialized banks and 3 foreign Banks. In the 1980s banking
industry achieved significant expansion with the entrance of private banks. Now, banking sector in
Bangladesh is primarily of two types:

Schedule Bank
Non-schedule Bank

Scheduled Bank: The banks which get license to operate under Bank Company Act, 1991 (Amended in
2003) are termed as Scheduled Bank. State-owned commercial banks, private commercial banks, Islamic
commercial banks, foreign commercial banks and some specialized banks are Scheduled Bank.
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Non-Scheduled Bank: The banks which are established for special and definite objective and operate
under the acts that are enacted for meeting up those objectives are termed as Non-Scheduled Bank. These
banks cannot perform all functions as like as scheduled banks. Grameen Bank, Probashi 6 JBBC K.K.
Tokyo To, Toshimaku, Higashi Ikebukuro, 1-20-2, Room 502, Japan. Kallyan Bank,
Karmasangsthan Bank, Progoti Co-operative Land Development Bank Limited (progoti Bank) and
Answer VDP Unnayan Bank are Non-Scheduled Bank.

2.2 Current Structure of Banks in Bangladesh

Banking sector of Bangladesh is one of the major sectors, which contributes significantly to the national
economy. The sector comprises a number of banks in various categories.

The commercial banking system put on vital role in Bangladesh's financial sector. Bangladesh Bank is the
Central Bank of Bangladesh and the principal regulator of the sector. Bangladesh have total of 55 states
owned, private, foreign and specialize Banks. The banking system consists of four state-owned
commercial banks, 31 private commercial banks, 10 specialized development banks, and 10 foreign
commercial banks.

The Nobel Prize for Grameen Bank is a specialized micro-finance institution, the concept of microcredit
revolution and a major contribution to poverty alleviation and empowerment of women in Bangladesh.
Structure of the banking sector by the type of banks is shown in table 1 below:

Bank Types Number of Total % of Assets Deposits % of
of Banks Branches Assets Deposit

National 4 3384 786 32.7 654.1 35.2

Commercial Bank

Government owned 10 1354 187.2 7.8 100.2 5.4


Private commercial 31 1776 1147.8 47.7 955.5 51.3


Foreign Commercial 10 48 284.9 11.8 150.8 8.1


Total 55 6562 2406.7 100.0 1860.6 100.0

Table 2.1: Banking System Structure (Billion Taka)

List of Banks in Bangladesh:

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There are 5 types of Banks in Bangladesh. These are:-

A). Central Bank

B). State- owned Commercial Banks
C). Private Commercial Banks
D). Foreign Commercial Banks
E). Specialized Development Banks

A). Central Bank:-

Bangladesh Bank

B). State-owned Commercial Banks:-

Sonali Bank Limited

Rupali Bank Limited
Agroni Bank Limited
Janata Bank Limited

C). Private Commercial Banks:-

United commercial Bank Limited

Mutual Trust Bank Limited
BRAC Bank Limited
Eastern Bank Limited
Dutch Bangla Bank Limited
Dhaka Bank limited
Islami Bank Bangladesh Limited
Uttara Bank Limited
Pubali Bank Limited
IFIC Bank Limited
National Bank Limited
The City Bank Limited
NCC Bank Limited
Prime Bank Limited
Southeast Bank Limited
Al-Arafah Islami Bank Limited
Social Islami Bank Limited
Standard Bank Limited
One Bank Limited
Exim Bank Limited
First Security Islami Bank Limited
The Premier Bank Limited
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Bank Asia Limited
Trust Bank Limited
Shahjalal Islami Bank Limited
Jamuna Bank Limited
AB Bank
AB Bank
Marcantile Bank Limited

D). Foreign Commercial Banks:-

Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
Habib Bank Limited
National Bank of Pakistan
Woori Bank
Bank Alfalah

E). Specialized Development Banks:-

Bangladeshi Krishi Bank

Rajshahi Krishi Unnayan Bank
Progoti Co-operative Land Mortgage Bank Limited
Grameen Bank
The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
Bangladesh Somobay Bank Limited (Cooperative Bank)
Basic Bank Limited
Karmasangstan Bank

[Source: A Report on Banking Sector of Bangladesh Mansur Ahamed (Ph. D) Research Department,
JBBC Corporation]

2.3Bangladesh Economy 2014-2015

Notwithstanding continued prevalence of an atmosphere of democratic discomfort, Bangladeshs fiscal
year 2014-15 (FY2015) is closing with a number of macroeconomic advantages including lower inflation,
declining interest rate, stable exchange rate, manageable fiscal deficit, positive balance of payment and
augmented foreign exchange reserves. The low level of global commodity prices including that of oil has
also provided some respite in terms of resources needed to meet subsidy demands. Developing countries
of Asia managed to accelerate their growth rates, with India and the ASEAN countries being in the lead
(ADB, 2015). On the other hand, the major economies in the global economic frontier (i.e. the United
States of America, countries in the European Union, and Japan) are growing at an uneven pace, limiting
the global growth prospects to only 3 per cent in 2015, as projected by the World Bank (2015).
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The Bangladesh Bureau of Statistics (BBS) recently established a provisional estimate of 6.5 per cent for
gross domestic product (GDP) growth in fiscal year 2015 .This was 0.8 of a percentage point lower than
the target of 7.3 per cent in the FY2015 budget.1 It may be recalled that, according to SFYP, the GDP
growth rate for FY2015 was set at 8.0 per cent. Many analysts, including those from the World Bank and
Asian Development Bank, expected economic growth in FY2015 to be between 5.6 and 6.1 per cent due
to political turmoil in the third quarter of the fiscal year and trends of associated macroeconomic
correlates (see World Bank [2015] and ADB [2015]). CPD (2015) estimated that total losses suffered by
selected sectors from January to midMarch of 2015 due to political unrest would be approximately Tk.
4,900 core, which would be approximately 0.55 per cent of GDP for FY2015 if the 6.5 GDP growth in

[Source: CPD (2015): State of the Bangladesh Economy in FY2015]

Chapter 03
The Banking at a Glance;

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Janata Bank Ltd

3.1 History of the Bank

Janata Bank Limited is a state owned commercial bank incorporated on 21 May 2007 under the Company
Act 1994 as a public limited company and governed by the Bank Company Act 1991 (Bank Company Act
(Amended) 2013). Janata Bank Limited took over the businesses, assets, liabilities, right, power, privilege
and obligation of erstwhile Janata Bank (emerged as a Nationalized Commercial Bank in 1972), pursuant
to Bangladesh Bank Nationalization order 1972 (P.O. No. 26 of 1972) on a going concern basis through a
vendor agreement signed between the Ministry of Finance, People's Republic of Bangladesh on behalf of
Janata Bank and the Board of Directors on behalf of Janata Bank Limited on 15 November 2007 with a
retrospective effect from 1 July 2007. The bank has 904 branches
including four overseas branches and two 100% owned subsidiaries named as Janata Exchange Company
Srl, Italy and Janata Capital and Investment Limited, Dhaka

Bangladesh Bank issued license on 31 May 2007 in the name of Janata Bank Limited to conduct the
banking business. The registered office of the company is located at 110 Motijheel C/A, Dhaka-1000 and
the website address is

3.2 Vision, Values, Mission & Objective of JBL

3.2.1 Vision:-

Becoming effective largest commercial bank and ensuring highest standard of client services through best
application of latest information technology, making due contribution to the national economy and
establishing themselves firmly at home and abroad as a front ranking bank of the country are their
cherished vision.

3.2.2 Values:-
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Customer focus.
Respect for the individual.
Responsible citizenship.

3.2.3 Mission:-

The mission of the bank is to actively participate in the socio- economic development of the nation by
operating a commercially sound banking organization, providing credit to viable borrowers, efficiently
delivered and competitively priced, simultaneously protecting depositors funds and providing a
satisfactory return on equity to the owners

3.2.3 Objective:-

To ensure inflow of funds at combinations of least possible cost.

To maintain a discreet credit policy.
To extend financial assistance to the citizenry, living at dispersed locations by expanding the
network of branches.
To practice stronger IT-driven initiatives that will meet the challenges and requirements of the
bank and its clientele.
To improve administrative and organizational structures in order to prepare the platform for best
practices of corporate governance.

3.3 Core Operations

The bank has five reportable segments, as described below, which are the bank's strategic business units.
The strategic business units offer different products and services, and are managed separately based on
the bank's management and internal reporting structure. For each of the strategic business units, the bank
management committee reviews internal management reports on at least a quarterly basis. The following
summary describes the operations in each of the bank's reportable segments:

Segment Operation
i. Loans & Advances Includes loans, deposits and other transactions and balances with
corporate customers & retail customers.
ii. Treasury Undertakes the bank's funding and maintenance of SLR, Asset liability
management through borrowings and placement, currency swap and
investing in liquid assets such as short-term placements and corporate and
government debt securities.

iii. Overseas Branches Four (4) overseas branches of Janata Bank Limited are situated in UAE &
(UAE) operating banking business, money remittance etc. as per the head office

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instructions and other activities as permitted under the banking law of
iv. Janata Exchange Janata Exchange Company Srl., Italy, subsidiary company of Janata Bank
Company Srl, Italy Limited operates its business in Italy. It performs the activities of money
remittance, issue cehques, payment instruments and traveler's cheque and
other activities as permitted under the banking law of Italy.
v. Janata Capital and Established to do all kinds of merchant banking activities including issue
Investments Limited management, underwriting, portfolio management and other transactions.

Table 3.1: Operating Segments

3.4 Recent Performance of JBL

Major Achievements in 2015

Outcomes of the green banking policies in Bangladesh are outlined below:-

Commercial banks have disbursed about 42 per cent of the total revolving fund among the
entrepreneurs who vowed for green banking scheme. A large number of banks under the scheme
have formed green banking units, introduced green office guides, have been powered by solar
energy and have been facilitated with online coverage.

A good number of banks, state-owned and private, and also a nonbank financial institution have
shown interest in environment friendly electricity projects to get green energy by 2015. Likewise,
other banks have undertaken strategies to finance biogas plants, solar assembling plants, solar
irrigation system and solar power plant projects.
Environmental Risk Rating (EnvRR) has been done for 3,703 projects during April-June, 2012.
Bangladesh Banks activities have been fully automated: Bangladesh Automated Cheque
Processing System (BACPS), Bangladesh Electronic Fund Transfer Network (BEFTN), National
Payment Switch (NPS), Enterprise Data Warehouse (EDW), e-tendering, and e-recruitment are
major instances of automation.
Bangladesh Bank has done environmental risk rating for a large number of projects.

Janata Bank Ltd. has been Recognized Internally and Domestically for its Good
Performances are outlined below:-

ICMAB Best Corporate Award-2014.

Performance Excellence Award by Citi Bank N.A. and Asian Banking and Finance Wholesales
2013 and Retail Banking 2013.
International Award -"World's Best Bank Award-2008 in Bangladesh.
International Award -"World's Best Bank Award-2007 in Bangladesh.
International Award -"World's Best Bank Award-2006 in Bangladesh.
Janata Bank Limited receives "Asian Banking Awards 2005" on Credit Scheme for Handicapped
International Award -The Bank of the Year-2004 in Bangladesh.

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Janata Bank Limited receives "Asian Banking Awards 2004" on financing Program for Women
Janata Bank Limited gets The Banker Award-2003.
International Award-The Bank of the Year-2002 The Banker.
International Award-The Bank of the Year-2001 The Banker.

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Managing Director

General Manager

Deputy General Manager

Assistant General Manager

Senior Principal Officer

Principal Officer

Senior Officer


Sub Accountant
Senior Clark
Figure 3.1: Organizational Structure of Janata bank Ltd.

3.5 Management Hierarchy of the Bank

3.6 SWOT Analysis OF JBL
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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
about a specific topic. 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.


Janata Bank has the reputation of being the provider of good quality services to its, potential
customers. So in case of remittance service the customer prefer it as a loyal bank.
Janata Bank has sufficient branch to meet the customer remittance need in rural area and also in
urban area.
Janata Bank has already achieved high profit from remittance service.


Private bank has already provided better service in remittance.

The bank failed to provide a strong quality-computerized banking system which is helpful to
serve in remittance service.
The poor service quality has become a major problem for the bank. The quality of the service at
Janata Bank is lower than that of the Dhaka Bank, Prime Bank or Dutch Bangla Bank etc
Scarcity of man power and instrument is also a weakness of the bank in providing remittance


The Janata Bank has some foreign branch which is able to serves in foreign remittance service.
It has already involved in computerized banking system. So it will be an greater opportunity in
providing better remittance service.
The foreign remittance service has direct impact on profitability of the bank


On-line banking is not available in Janata Bank. But it is very important tools in remittance
Private bank is more preferable to customer about remittance service.
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 its
effects the organization as a whole.

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3.7 Corporate Social Responsibilities (CSR)
Janata Bank Ltd. conducts it CSR in 2 ways- policy driven and through direct participation in specific
programs. However, JBL intends to adopt CSR practices, more in the formal and structured manner in
light of the Bangladesh bank guidelines for mainstreaming CSR practices in the 16 financial sector.
Future efforts of the bank in respect of CSR will include more involvement of its stakeholders in terms of
their expectations and needs in order to incorporate more responsible business practices in all of banks
functions and operations with a goal to fulfill social, economic, environmental, and ethical responsibilities
of the bank.

Total involvement for CSR activities stood at 100,000,000tk at the end of the year 2014. JBL channelized
this CSR outlay in diverse areas judging from need and importance it attaches to the banks perspectives.

CSR activities of janata bank ltd. Of 2014 given below:-

Corporate Social Responsibilities

15% Poverty Reduction and

25% Rehabilitation
15% Konwledge Building
Disaster Mitigation

Figure 3.2: CSR activities of janata bank ltd. Of 2014

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3.8 Information of Branches

There are 900 branches of Janata Bank Limited in home and 4 in abroad. And all foreign branches are
situated in United Arab Emirates.

In Bangladesh (divisional office wise) Branches:-

Division No. of Branches

Dhaka south 104
Dhaka north 56
Mymensigh 75
Chittagong 80
Comilla 123
Khulna 87
Rajshahi 147
Rangpur 73
Sylhet 59
Faridpur 55
Barisal 41
Sub total 900

Table 3.2: In Bangladesh Branches

Outside Bangladesh Branches:-

UAE branches No. of Branches

Abu-dhabi 1
Al-ain 1
Dubai 1
Sharjah 1
Sub total 4

Table 3.3: Outside Bangladesh Branches

3.9 Product of JBL

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Product and services is the main assets of any organization. JBL is playing the most significant role in
offering specialized services to different clients or agencies throughout the country. The following
product and services are available of Janata Bank Ltd.

Consumer Credit Scheme

Special Deposit Scheme
Monthly Saving Scheme
Saving Insurance Scheme
Credit Card
Western Union Money Transfer
JBL ATM Service
JBL Power Card

3.9.1 Consumer Credit Scheme: -

JBL Consumer Credit Scheme gives clients a great opportunity to buy household and office items on easy
installments. This scheme gives clients the advantage of part payment to cope with the high price tags of
many necessary home and office appliances.
Television, Refrigerator, VCR, Personal Computer, Photocopier, Washing Machine, Furniture, Microwave
Oven, Car, and a number of other expensive items are now within their buying range.

3.9.2 Special Deposit Scheme:-

Under this scheme, customers can deposit money for a term of 5 years. The deposited money is fully
refundable at the expiry of the term. At the same time, during the term period they can enjoy a monthly
profit corresponding to their deposited amount. As for instance, under this scheme a deposit of Tk,
55,000/- gives a monthly income of Tk.500/-.

3.9.3 Monthly Saving Scheme:-

This scheme is specially designed for the benefit of the limited income group members. This helps to
accumulate small monthly savings into a significant sum at the end of the term. So, after the expiry of the
term period the depositor will have a substantial amount to appreciate on. A monthly deposit of Tk.500/-
or Tk.1000/- for 5 or 8 years period earns in the end. Tk37, 896 /- or Tk.75, 791/- respectively.

3.9.4 Saving Insurance Scheme:-

This scheme is the first of its kind in Bangladesh. It combines the benefits of regular savings and
insurance scheme; so, you get the usual rate of interest on the deposited amount while you enjoy the
protection of a comprehensive insurance coverage. Under this scheme, the beneficiary get equal the
deposit in case of natural death of the account holder whereas in the event of accidental death of the
account holder the beneficiary will receive twice the deposit.

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3.9.5 Credit Card: -

Credit card is the newest concept in our country. In our country Credit card was first introduced by the
Janata Bank Ltd. Master card and VISA card are name of popular credit card band. Credit card is safe,
instant, and universal money. Janata Bank Ltd. Issues two type of credit cards given below:

Local master and visa card

Local master and visa card are two types, such as gold card and silver card.
Gold card limit is 50000 taka to 1000000 taka
Silver card limit is 10000 taka to 45000 taka

International master and visa card

It has also two types, such as gold card and silver card.
For international purpose gold card limit is $ 4000 above
For international purpose silver card limit is $ 2000 blow $4000

3.9.6 Western Union Money Transfer:-

Joining with the world's largest money transfer service "Western Union", JBL has introduced Bangladesh
to the faster track of money remittance. Now money transfer between Bangladesh and any other part of
the globe is safer and faster than ever before. This simple transfer system, being on line eliminates the
complex process and makes it easy and convenient for both the sender and the receiver. Through JBL -
Western Union Money Transfer Service, your money will reach its destination within a few minutes.

3.9.7 JBL ATM Service:-

JBL ATM card give opportunity to their customer that they can withdraw their money at any time, any
days even holidays. By using ATM subscriber can give various utility bill such as telephone, gas,
electricity bills etc. Actually ATM card is a debit card. Janata Bank Ltd. has introduced ATM service to its

3.9.8 JBL Power Card:-

It is a prepaid card. No need of any account of JBL branch. Application forms are available at any JBL
branch and card center. No annual fee for the first year. Renewal fee Tk 200.00 only. Local card limit
1000at minimum or its multiple. International card limit is -US$ 500.00 at minimum. Refill through any
JBL branch. Drawing cash from JBL ATMs free of charge & from ATMs under Q-Cash network-Tk 10.00
per transaction from other ATM-Tk 100.00.
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3.10 Function of JBL as a Commercial Bank

Collecting Deposit, Lending

General Loan, Honouring Cheque,
Function creation of Medium of
Exchange, Discounting Bills,
Money Transfer etc.

Creation of Service and

Development Formation of Capital, Helps
Function Export and Import Business,
Investment in Development,
Function of Sector, HR Development etc.

Janata Bank
Receive and payment as the
Representative Representative of clients,
Function Selling of Share and

Transaction of Foreign
Service Currencies, Information
Function Sharing, Consulting and
Others Service Function.

Figure 3.3: Function of JBL

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3.11 Financial Highlights of JBL at a Glance Performance Analysis

3.11.1 Compare Between Operation Profit and Net Profit of JBL:




TK. 10,000,000,000



[Source: Janata Bank Annual Report 2014]

Graph 3.1 Compare Between Operation Profit and Net Profit of JBL from 2013 to 2014

3.11.2 Compare Between Non-Interest Income and Interest Income of JBL:




TK. 4,000,000,000


2013 2014


[Source: Janata Bank Annual Report 2014]

Graph 3.2: Compare Between Non-Interest Income and Interest Income JBL from 2013 to 2014
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3.11.3 Compare Between Return on investment (ROI) and Return on Assets (ROA) JBL:

Percentage 6.00%
2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 3.3: Comparing Between Return on investment (ROI) and Return on Assets (ROA) JBL
from 2013 to 2014

3.11.4 Compare Between Earning Per Share (EPS) JBL:

Earning per share (EPS)

2013 2014

[Source: Janata Bank Annual Report 2014]

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Graph 3.4: Comparing Between Earning per share (EPS) JBL from 2013 to 2014

3.11.5 Janata Bank Compare with Nationalized Commercial Bank of Bangladesh:

Net Profit After Tax





Tk. 4,000,000,000




Janata Bank Ltd. Sonali Bank Ltd. Rupali Bank Ltd. Agrani Bank ltd.

[Source: Annual Report 2014 of Above Banks ]

Graph 3.5: Comparing Net Profit After Tax (NPAT) With Four Nationalized Commercial Bank of
Bangladesh 2014

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Chapter 04
Remittance Activities: Study on Janata Bank

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4.1 Introduction of the Issue
Remittance is sending money from one place to another through banking or authorized channel. Banks
earn maximum portion of non interest income from remittance. Noninterest income of a bank depends on
largely, the overall qualities of services of the bank. So the precondition for a banks prospects to provide
remittance service in modern and developed way, relevant expertise of the employees and customers

Remittance is important from the customers point of view, as it is easy, less expense, minimizing risk.
Remittance is important from the bankers point of view as Bank earn noninterest income, helpful for
other business and helpful for stable economic growth. Mainly the following parties are involved in

Applicant or Sender or Purchaser, who is sending money.

Drawer or Issuing branch which receive money and instruct other branch to make payment.
Drawer or paying branch which make payment.
Payee or Beneficiary who receive money

4.2 Justification of the Report

Banking sector now-a-days plays an important role to develop the economy of a country, especially
developing country. It is worthless to say how much important the banking sector to run the wheel of a
countrys economy. With the globalization of economies, international trade has become quite
competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for
successful international trade operations. Foreign remittance plays significant roles in countrys economy.
In Bangladesh remittance is increasing day by significantly and many banks are playing excellent role in
this sector, among them one of the most prominent banks is Janata Bank Limited which is providing
different services to the customers through its three departments. One of the departments of JBL is
general banking department; this department is the most important department of JBL. Under this
department Local and foreign remittance service is provided. Since Marketing is the Area of my study,
Bank Remittance Seems Preferred me Rather than Any Other Banking Activates to study. Thus I think,
this Study will Vehemently Help to me go Forward and Improve my Career Path.

4.3 Bank Remittance

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Remittance is two types:-

Local or Inland remittance

Foreign Remittance

Remittance of

Local or Inland Foreign

remittance Remittance

Inward Outward Inward Outward

Remittance Remittance Remittance Remittance

Figure 4.1: Remittance of JBL

4.4 Janata Bank Ltd. Remittance Activities

4.4.1 Local or Inland remittance:

Janata Bank provides to its customers the following services:-

Inward/ Outward Remittance Services.

TT/DD Issue.
DD/ Cheque collection.
Travelers Cheque Issuance.

4.4.2 Foreign Remittance:

The objective of our correspondent banking operations is to strengthen our existing

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relationship with foreign and financial institutions around the globe as well as exploring new
relationships. In addition to that, we provide assistance in marketing the products of the correspondent

Al present JB is maintaining relationships with 30 (thirty) foreign correspondents and the number is
growing every day. Currently the bank has 18 (eighteen) NOSTRO A/Cs wife large foreign banks abroad.
The bank is a SWIFT member and its Bank Identification Number or BIC is JBLBBBH.

4.5 Local or Inland remittance Activities of JBL

Local or Inland remittance department of JBL Performs an Important Role to Send Money One Place to
Another Branch with in a Country.

We are Easily Understand the remittance Activities in a Bank by the Following:-

Place-1 Place-2

1. Customer 4. Beneficiary (Money

(Money Sender) Recever)

Go to Pay Money

2. Issuing Branch Order Send 3. Paying Branch

(Taking Money with (Getting Order from
Bank Commissions) Issuing Branch)
Figure 4.2: How a Bank Perform its Remittance Activities

As a public bank janata bank serves in the following mode of remittance:-

Demand Draft (DD).

Mail transfer (MT).
Telegraphic Transfer (TT).
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Pay Order (PO).
Security deposit receipt(SDR).
Pay slip.
Clearing House.
Cash Management.

4.6 Demand Draft (D.D.)

DD is the most widely used instrument of remitting fund. It is order
to pay money drawn by one branch of a bank upon another branch of same bank for a particular amount
of money that is payable to order and demand.

4.6.1 Procedures of remitting money through DD:-

The procedures of remitting money through DD are stated briefly in below-

At first, the sender of money is advised to fill up a form and deposit the cash. The form is usually
called DD application form or credit voucher.
The senders of money fills up the voucher appropriately and place it with cash before the officer
at cash receipt section.
After receiving the voucher and cash, the officer counts the money and charges a fee as
commission. Here it is mentionable that the commission for DD up to tk 10,000 is Tk. 10 for per
1000 and Tk. 1 for every thousand above Tk. 10,000.
After that, the voucher is sent to the concerned officer of remittance section.
Here the officer prepares a paper instrument called Demand Draft (DD) and enters the amount
in the draft issue register.
Draft book and DD along with the register are then sent to the officer in charge for checking. If
everything is Okayed, the officer signs the DD and voucher and keeps the register and counter
foil of the DD.
After that the DD is issued to the sender of money. At this stage he can send the DD to the
receiver branch by post or any other ways.
After issuing the DD and handing over it to the sender of money, the DD issuing branch sends an
advice to the receiver branch about DD.
Finally, the DD receiver branch makes payment to the bearer of DD. i.e. payee after completing
the necessary formalities.

First the customer fill up the DD application form are as follows name of the payees and address, name of
the branch, amount in taka, customer name, address, A/C number, Phone number and his signature. Then
he sands the form and the DD amount to cash counter.

Cash officer received the DD, entry to the register book and send it the accounts
department accounts officer entry to the both think for authority to signature. The
commission of the DD is minimum Tk. 20.

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4.6.2 DD. Paid without Advice Both Local and Foreign of JBL:-






2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.1: DD Paid without Advice Both Local and Foreign of JBL From 2013 to 2014

4.6.3 DD cancellation of JBL:-

DD cancelled

TK. 1,000,000
2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.2: DD cancellation of JBL from 2013 to 2014

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4.7 Payment Order (P.O.)
At first the customer fill up the PO application form are as follows-name of the payee and address, name
of the branch, amount in taka, customer name, address, A/C number, phone number and his signature.
Then he sands the form and the PO amount to cash counter.

Service charges of TT, MT, and DD are as bellows:-

Commission Vat Total

Amount (Tk.)

1000 Tk. 20 3 23
1000-100000 30 5 35
100000-499999 50 8 58
500000-above 100 15 115

Table 4.1: Service charges of TT, MT, and DD of JBL

4.7.1 Payment Order Issued of JBL:

Pay order issued

2013 2014

[Source: Janata Bank Annual Report 2014]

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Graph 4.3: Payment Order Issued at JBL In 2013 to 2014

4.8 Mail Transfer (M.T.)

The facility of transferring money by mail is available to the customers having some sort of an account
with the Bank. There matter despite the amount to be transferred with small commission with the
remitting branch. It is an advice issued by a branch to another branch for crediting the specified amount to
the account of the payee maintain with them. It is a non negotiable instrument and generally is not
handed over to the customer rather sent through post office to the connected branch for credit to the
respect idea mount.

4.8.1 Procedures of remitting money through MT:

The procedures of remitting money through MT are almost same as the procedures of remitting fund
through DD. But there are some exceptions in this system-

In case of MT, the sender of money is not provided with the MT paper but a receipt. The branch
sends the MT paper under its own responsibility by mail to the MT receiving branch.
The commission for MT up to Tk. 10 for per 1000 and Tk 1 for every thousand above Tk 10,000.
The postal charge is Tk 10 for every MT issue and any amount of money.
The MT issuing branch has to send a secret message i.e. Test to the MT receiving branch. It is
must for any amount of money. Here the amount of money, issuing date and other particulates are
To maintain the secrecy of the message sent, the issuing branch codes the message by a particular
number consisting of different digits. After receiving the message, the paying branch decodes it
by using the predetermined techniques. This process is called test. If everything is Okayed, the
paying branch makes payment to the payee.

4.8.2 Mail Transfer (M.T.) Payable of JBL:

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M.T. Payable

TK. 2,000,000
2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.4: Mail Transfer (M.T.) Payable at JBL In 2013 to 2014

4.9 Telephonic Transfer (T.T)

At fast customer fulfill the TT application from are as follows- Name of the payee and address, Name of
the branch, amount in taka, customer name , address, A/C number, phone number and his signature. Then
he sands the form and the TT amount to cash counter.

Now the bank officer takes the amount and registers the entry book and send to the A/C section. A/C
section officer entry to the TT registers boom, serial number as a TT number and wrote the advice number
into the TT form, then send to the authority to signature and test the TT. The minimum commission of the
TT 20 and then 0.1% of the amount, govt. tax of the commission in 15% and telephone charge TK.30.

Total = total +advice charge + telephone expense


4.9.1 Telephonic transfer (TT) Responding:

At first authority take the TT with the phone then he/she sent to the responding paper to the cash officer
the cash officer take the entry to the TT responding book. Debit to the Janata Bank A/C for sending
branch, consumer credit to the bank A/C and write the TT responding voucher.

4.9.2 Procedures of remitting money through TT:

The primary formalities that have to be maintained to remit money through TT are same as DD and MT.-

The commission for MT up to Tk. 10,000 is Tk 10 per TK 1000 and Tk 1 for every thousand
above Tk 10,000.

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Here a fee of Tk 20 is charged as telegraphic charge for every TT issue and for any amount of
In case of TT, no paper instrument is sent to the paying branch. Rather the TT issuing branch
sends a TT advice through telephone, telegraph, Fax or telex to the paying branch. In sending
message, the branch keeps necessary secrecy.
Side by side, the TT issuing branch sends an advice to the head office of the bank.
After receiving the message, the paying branch tests to decode the message. If everything is
obeyed, then the branch makes payment to the payee. After that the branch sends an advice to the
head office to reconcile the accounts of both branches.
In case of TT, test is must for every issue and for any amount of money.

4.9.3 Telephonic Transfer (T.T) Payable of JBL:

T.T. Payable




2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.5: Telephonic Transfer (T.T) Payable at JBL In 2013 to 2014

4.10 Financial Data Regarding Local Remittance of JBL Jatrabari Corporate


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4.10.1 Contribution of JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance
Earning in 2015 from Various Fields of Local Remittance Activities:

No. of Transaction Percentage (%) Amount (TK.)

Demand Draft 1040 10% 72,832

Mail Transfer (M.T.) 370 3% 21,849

Telephonic Transfer 7080 65% 4,73,405


Payment Order (P.O.) 2340 22% 1,60,230

Total 10830 100% 7,28,316

Table 4.2: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning in 2015

Inward Local Remittance Earning





(D.D.) (M.T.) (T.T) (P.O.)

Graph 4.6: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning in 2015

After Analyzing the Above Data for Table 4.2 and Graph 4.6, we Find the Highest amount of Remittance
is Earned from TT at Jatrabari Corporate Branch, Dhaka and than the PO, MT, DD Department Come

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4.10.2 Contribution of JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance:

2012 2013 2014 2015

No. of 9978 11015 10096 10830


Amount (TK.) 6,82,450 7,12,054 7,08,253 7,28,316

Table 4.3: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning from 2012
to 2015

TK. 400000
2012 2013 2014 2015

Graph 4.7: JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning from
2012 to 2015

The Graph 4.7 Shows that, JBL Jatrabari Corporate Branch, Dhaka in inward Local Remittance Earning
of 2015 is Tk.7,28,316 which is Higher than inward Local Remittance is Tk.7,08,253 in 2014.

4.11 Clearing House

The clearing housing in the Janata Bank is locally operating scheduled banks for exchange of cheque,
drafts and other demand instrument drown in each other and received from their respective customers for
collection. The house meets at the appointment hour on all working days under the chairmanship of the
central bank or its agent as the case may be, and works within the regulations framed therefore on the

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basis of prevailing banking practice in Bangladesh clearing house sites at Bangladesh bank but where
there in no office on the Bangladesh bank Somali bank acts as agent of Bangladesh bank.

There are two types of clearing systems in Bangladesh bank such as:-
Internal clearing or inter branch clearing
External clearing on inter- banks clearing

The entire member if banks representative daily conduct and handover cheque drafts etc. passed, which
are drown upon them.

4.11.1 Dispatch section:

Dispatch includes all correspondence, letters, statement and returns and telegrams .this dispatch is also
known as mail. The dispatch is primarily divided into two categories.

Inward: It means what are received from the outside.

Outward: It means what are sent to the outside.

The dispatch also divided into ordinary registered and local every correspondence should have an office
copy and one additional copy is also retained in the masts file of the office.

4.11.2 Working procedures for inward Mail:

Registered the inward mail registered

A local mail registered
Currency note received and money order will be entered in a special notebook.

Working procedures for outward Mail-

Registered the mail in the lout ward registered

Equitable sum is advance for postage by debit to charge account and credit to postage book under
the authentication of the manager.

4.12 Foreign Remittance Activities in JBL

Remittance means transfer of money from one place to another. It is one of the safest ways to transfer
money from one place to another. The basic functions of this department are outward and inward
remittance of foreign exchange from one country to another country. In the process of providing this
remittance service, it sells and buys foreign currency. The conversion of one currency into another take
places at an agreed rate of exchange where the banker quotes for buying and selling. In such transactions
the foreign currencies are like any other commodities offered for sales and purchases, the cost being paid
by the buyer in home currency, the legal tender.

4.12.1 Functions of this department:

Overall supervision of foreign remittance.

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Foreign TT payment and purchase of foreign drafts.
Preparation of foreign bill purchase (FBP).
Issuance of outward TT and FDD.
Issuance of proceed responding certificate (PRC).
Foreign collection, Bangladesh bank clearing cheque collection that comes from all the branches
of JBL.
Withdrawal from FCA account.
Encashment of TC and cash dollar and sterling pound.
Deduction of tax and VAT on behalf of Bangladesh bank.
Preparation of related statements including convertible taka accounts.
Balancing of account statement.
Compliance of audit and inspection.
Preparation of IBCA and IBDA and balancing of collection and other special assignment as
desired by department in charge.

4.12.2 Remittance Services at JBL:

Janata Bank maintains a strong network with the Exchange Houses worldwide for ensuing better
remittance services for its customers. The Bank having a network of 30 branches has established
remittance arrangements with a number of exchange houses to facilitate wage earners to remit their
money to Bangladesh. The following is the list of exchange houses having arrangement with al Janata
Bank Ltd.

Exchange House Name Service Available Presence

UAE Exchange Centre LLC Taka Draft Global
TT Arrangement
Web: Wall TT Arrangement UAE
Street Exchange Centre LLC
web:http://www. Instant Taka Draft Arrangement Global
Cash Worldwide Ltd. Locations
Al Ahalia Money Exchange Bureau TT Arrangement UAE
Taka Draft
Route of Asia Money Exchange Ltd. TT Arrangement UK
Bangladesh Money Transfers (UK) Ltd. TT Arrangement UK
Instant Exchange UK Ltd. TT Arrangement UK
Money link UK Ltd. TT Arrangement UK
web: bttfr//www. money hnknk. Trust Taka Draft Arrangement Qatar
Exchange Co. W1.L.

Table 4.4: JBL Foreign Remittance Services

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To facilitate sending money in Bangladeshi Taka directly, Janata Bank Limited has taka Drawing
Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis
may send their money in BDT (Bangladeshi Taka) through the branches / subsidiaries of Janata Bank
Limited and foreign banks/exchange companies. 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 or within shortest possible time.

4.12.3 Country wise remittance of JBL:

Table: Country wise Foreign Remittance of JBL from 2010 to 2014

Country:- 2010 2011 2012 2013 2014
Italy 1346.5 2843.14 3402.1 2901 1767.4
Janata Bank, 7234 6637` 6754.3 15590 1890.9
Other 2279.5 2901.7 4714 6878.2 8738.1
Kuwait 4089.3 5652.6 7615.9 7780.1 6764.3
Saudi Arabia 3762.7 3598.3 3025.2 4536 7718.2
Oman 1095.6 1106.2 1171 1341.6 1038.7
Bahrain 817.4 853.2 834.5 916.7 716.1
Greece 0 537.9 697.9 591.5 524.5
UK 0 0 0 2213.3 6174.9
United States 190.8 149.2 173.6 200.6 118.9
Qatar 29.2 132.8 153.6 222.3 285.7
Malaysia 623.9 264.2 208.7 113.2 23.9
Singapore 0.4 5.3 0.7 20.2 98.1
Korea 23.2 2.5 0 0 3.4
Canada 0 6.6 7.2 5.6 4.3
Australia 0 .8 0 0 1.2
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Other sources 5945.7 5288 5484.4 6272.1 6334.2
Grand Total 32745.9 38991 47329 57523.19 3945.89

Table 4.5: Country wise remittance of JBL from 2010 to 2014

Inward remittance from Bangladeshi nationals working abroad continued to play an important role in
strengthening the current account. Receipts on this sector increased gradually in every year from 2010 to
2014(June). The underlying reason was that Bangladesh Bank has simplified the approval policy of
drawing arrangements between foreign exchange houses and domestic bank. Janata Banks management
has taken this opportunity.

For quick payment of TTs issued by 4(Four) UAE branches of JBL Foreign Exchange Corporate Branch,
Dhaka( FECB, Dhaka), Laldighi East Corporate Branch, Chittagong(LDE, Ctg), Foreign Exchange
Corporate Branch, Sylhet ( FECB, Sylhet), Khulna Corporate Branch, Khulna, Barisal Corporate Branch,
Barisal & Rajshahi Corporate Branch, Rajshahi are nominated.

To facilities to its remitters Janata bank Limited has started-

FECB, Dhaka will cover whole Dhaka Division,

LDE, Ctg will cover whole Chittagong Division, except branches under greater Comilla and
Noakhali Area.
FECB, Sylhet will cover whole Sylhet Division,
Khulna Corporate will cover whole Khulna Division,
Barisal Corporate will cover whole Barisal Division,
Rajshahi Corporate will cover whole Rajshahi Division,
Comilla Corp. will cover all branches under greater Comilla district.
Noakhali Corp. will cover all branches under greater Noakhali district.

Commission for issuance of Taka Drafts from our UAE branches has been reduced and re fixed from
AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and payable at any
bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for issuances of Taka drafts at
UAE branches has been reduced irrespective of amount. 1% interest above the normal savings deposit
rate is offered to SB accounts receiving foreign remittance.

4.13 Inward Foreign Remittance

Inward foreign remittance covers purchase of foreign currency in the form of foreign TT, DD, MT, Bills
etc sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported
to exchange control department of Bangladesh bank prescribing 2 forms-

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Form C: Inward remittances equivalent to US$ 2000 and above are done by this. Here, the
remittance recipient declares the purpose of fund.
EXP form: Remittances received against export of goods from Bangladesh are done by this.

4.13.1 JBL Inward Foreign Remittance:

JBL has established remittance arrangements with a number of exchange houses to

facilitate wage earners to remit their money to Bangladesh. This bank has already been in operation with
UAE Exchange Centre LLC, Wall Street Exchange LLC, Trust Exchange, Route of Asia money Exchange
Ltd, Instant Cash and Bangladesh Money Transfer, Al Ahalia Exchange Bureau. The extensive branch
network of these Exchange Houses has been largely helping Bangladeshi expatriates working in the UAE,
UK, Qatar, and Oman to transfer their funds speedily and efficiently through online network. JBL is
exploring 44 further avenues of remittance from other countries such as Saudi Arabia, Malaysia, USA and
Italy in the near future.

4.13.2 JBL Sources of inward Foreign Remittance:

Export proceeds
Remittance by emigrant Bangladeshi nationals working abroad
III Commissions, fees etc. earned by local business people
Foreign loans and grants, donation and gift.

4.13.3 Comparing Between Foreign Remittance JBL:

Foreign remittance

TK. 105,000.00
2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.8: Comparing Between Foreign Remittance JBL from 2013 to 2014

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4.14 Foreign Demand Draft (F.D.D)
The foreign bank/exchange company on local bank usually issues foreign Demand Draft. It is an order to
pay a certain sum to a certain person or as his instruction, issued by the bank on its overseas branch or on
its correspondent bank. The demand draft is handed over to the purchaser who sends it to the beneficiary.
The beneficiary obtains payment on presentation to the bank on which the draft is drawn.

Encashment of FDD may take place in two ways-

sending for collection.

4.14.1 Issuance of FDD:

JBL issues the Foreign Demand Draft for the charges for TOEFL, SAT, GMAT, registration fee,
membership fee and also for the application or processing fee for die student who are interested to study
abroad. JBL opens Student Files to issue Foreign Demand Draft following the permission of Bangladesh
Bank. Before issuance of FDD, JBL asks the students to fill up the TM Form; which contains the
following particulars-

Name of the student

Full address of the student
Amount of FDD in Foreign Currency
Purpose of Remittance
Address of the Institution to which the FDD will be favored
Country receiving payment
Passport no. of the student with date of issue
Signature of the student

The TM Form is sent to Bangladesh Bank with photocopies of the Passport of the student FDD issued.

Commission for issuance of FDD @ Tk.500.

Commission for Cancellation of FDD @ Tk.500.

The following vouchers are passed for issuing FDD:

Party/ Cash A/C Dr.

JBL General A/C Cr.
Commission A/C (1% of total amount) Cr.
VAT A/C (15% of commission) Cr.

4.14.2 Collection of FDD:

If a person has FC account with our branch and he received remittance from another bank then it is sent
for collection to the branch of the bank on which it is drawn. It is sent to JBL Head office through
Bangladesh bank clearing house.

After receiving credit advice the following vouchers are passed.

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JBL General A/C Dr.
Commission Cr.
Charges A/CCr.
Party A/C _____________________________ Cr

4.14.3 Comparing Between Foreign Demand Draft (F.D.D) JBL:

FDD payable

2013 2014

[Source: Janata Bank Annual Report 2014]

Graph 4.9: Comparing Between Foreign Demand Draft (F.D.D) JBL from 2013 to 2014

4.15 Speed Remittance System (SRS)

Recently, Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System which enables
beneficiaries to receive their money within shortest possible time. The beneficiary 27 also gets
information of remittance through automated SMS. Its a secured, easy, cost effective and speedy way of
remittance for the remitter. Janata bank Ltd. has signed an agreement with Western Union Network to
facilitate wide range of remittance of the globe. Both the organizations make it possible to receive the
money from about 300,000 locations of 200 countries instantly with prevailing mutual mechanism and
workforce. The achievement of Janata Bank Ltd in attracting foreign remittance as compared to countrys
performance is outstanding.

4.16 Financial data Regarding Inward Foreign Remittance of JBL Jatrabari

corporate Branch, Dhaka
4.16.1 Contribution of JBL Jatrabari corporate Branch, Dhaka in Inward Foreign

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2012 2013 2014 2015
No. of 1961 2096 2490 2691
Amount (TK.) 9,96,450 10,25,225 11,56,960 13,18,510

Table 4.6: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance from 2012 to







2012 2013 2014 2015

Graph 4.10: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance from 2012 to

The Graph 4.10 Shows that, JBL Jatrabari Corporate Branch, Dhaka in inward Foreign Remittance
Earning of 2015 is Tk.13,18,510 which is Higher than inward Foreign Remittance is Tk. 11,56,960 in

4.16.2 Contribution of JBL Jatrabari Corporate Branch, Dhaka in inward Foreign

Remittance Earning in 2015 from Various Fields of Foreign Remittance Activities:

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Activites Percentage (%) Amount (TK.)

SRS-Account 18% 2,37,332

Remittance SRS-to Instant/Spot 23% 3,03,257
System Cash
(SRS) of JBL
SRS-TTR/Payment 03% 39,555

Western Union 40% 5,27,404


From Others IME Spot Cash 7% 92,296

Company Placid Express Spot 5% 65,926
(JBL as an Cash
Agent) NBL Pay Out 1.5% 19,778
Express Money etc. 2.5% 32,962
Table 4.7: Total 100% 13,18,510 JBL
Corporate Branch, Dhaka in inward Foreign Remittance Earning in 2015

0 Inward Foreign Remittance

Graph 4.11: JBL Jatrabari Corporate Branch, Dhaka in Inward Foreign Remittance Earning in
After Analyzing the Above Data for Table 4.7 and Graph 4.11, we Find the Highest amount of
Remittance is Earned from Western Union Network at Jatrabari Corporate Branch, Dhaka and than the
Foreign Remittance Activities Come Respectively.

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4.17 Outward Foreign Remittance
It means what are sent to the outside. The dispatch also divided into ordinary registered and local every
correspondence should have an office copy and one additional copy is also retained in the masts file of the

4.17.1 JBL Sources of outward Foreign Remittance:

Payment of import liabilities

Payment of consular fees and commissions etc.
Foreign travel quota through travelers cheque/ foreign currency
Educational expenses for students abroad/ medical expenses and other purposes
All other payments sent abroad in foreign currency.

4.17.2 JBL Working procedures for Inward and outward Mail:

Registered the inward mail registered

A local mail registered
Currency note received and money order will be entered in a special notebook.
Registered the mail in the lout ward registered
Equitable sum is advance for postage by debit to charge account and credit to postage book under
the authentication of the manager.

4.18 Open foreign currency account (FC)

All local and foreign banks in Bangladesh, who are authorized by Bangladesh bank to deal in foreign
exchange, may maintain FC (Foreign Currency) accounts in die name of Bangladesh nationals or persons
of Bangladesh origin working and earning abroad including self-employed Bangladeshi migrants.

JBL Jatrabari Corporate branch issues exporters retention quota account and resident & Non-resident
foreign currency deposit account. Before opening FC account the officer checked die following thing of
the prospective account holder-

The account holder is a Bangladeshi national.

He is ordinarily resident abroad.
He does not receive any foreign exchange from Bangladesh source.

4.19 Issuance of Travelers Cheque

There are no sources in the current document. For Traveling purpose each person has a yearly foreign
currency quota as follows:-

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Particulars In cash In TC Total

For outside SAARC $2000 $1000 $3000

For Byroad $500 $500 $1000
Countrie By air $700 $300 $1000

Table 4.8: Travelers Cheque for yearly foreign currency quota.

The yearly quotas are mutually exclusive to each other. But for the FC A/C hold a special advantage is
prevailing there and that is the person can get TC for any amount as much as his FC A/C balance permits.

First, the party will fill up the form (purchase agreement) and sign it. Again he will sign the T/M form.
After that the banker will endorse the partys passport and ticket declaring the amount of foreign currency
issued in cash and in the form of TC. Then the following vouchers are passed:-

Party/ cash A/C Dr.

JBL General A/C Cr.
Commission A/C (1% of total amount) Cr.
VAT A/C (15% of commission)Cr.
Endorsement A/C (Taka 350)Cr.
Income A/C (Taka 100 per passport)Cr.

Then, entry is made in the TC issue register. Original copy of the purchase agreement, photocopy of the
ticket and passport are kept with the T/M form and the purchase agreement copy along with the TC,
passport and ticket are handed over to the party after getting after getting his received signature in the
TC issuing register.

4.19.1 Endorsement:

JBL endorses US Dollar in passports. To endorse US Dollar, the client has to apply in the prescribed from
(TM Form).The following entries are given in this regard:-

Party/Cash A/C Dr.

Foreign Currency on Hand (Dollar) Cr.

4.20 Trend and Impact of Foreign remittance

International migrant remittances have become an important source of external finance in developing
countries. In nominal dollar terms, recorded remittances sent home by migrants from developing

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countries are expected to reach $389 billion in 2014(June), a rise by 6.7 percent from $365 billion in

Remittances can generate a positive effect on the economy thorough various channels such as savings,
investment, growth, consumption, and poverty and income distribution. At the national level, remittances
contribute significantly to GDP.

At the community level, remittances create multiplier effects in the domestic economy, producing
employment opportunities and spurring new economic and social infrastructure and services.

Remittances have been found to rise when the recipient economy incurs a downturn in activity or
macroeconomic shocks owing to financial crisis, natural disaster, or political conflict. By making up for
foreign exchange losses due to these shocks, remittances may smooth consumption and thus play a part in
maintaining the economic stability of recipient countries.

In many countries, a large portion of remittances are invested in real estate, demonstrating both a desire of
migrants to provide housing to families left behind and a paucity of other investment instruments in the
recipient. Whether remittances are utilized for consumption or purchasing houses, or other investments,
they produce positive impact on the economy by stimulating demand for other goods and services.

Remittance is the life line of Bangladesh economy. Some 4.5m nonresident Bangladeshis are working
abroad, and sending home hard earned foreign currencies. It is believed that the actual number of
Bangladeshi migrants, both legal and illegal, would be close to 7.5 million. Non-resident Bangladeshis
(NRBs) sent $2.345 billion to Bangladesh between May and June of 2014, according to the Bangladesh
Bank statistics.

Banks drives the legal channel for remittance mobilization. Top 3 remittance receiver banks in market are
given in Table Following-
Sl. BANK June, 2014 (in USD Million)
1 Sonali Bank 92.69
2 Janata Bank 89.25
3 Agrani Bank 76.14

Table 4.9 : Monthly Inward Remittance, June 2014

Local and Foreign Remittance Comparison in USD Below-

Category 2011-12 in USD 2012-13 in USD 2013-14 in USD

NRB Remittances 12.8 million 15 million 17 million
Local Remittances 14 million 17 million 18 million

Table 4.10 : Comparing Between Local and Foreign Remittance from 2011 to 2014

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TK. 10
2011-12 2012-13 2013-14

Graph 4.12: Comparing Between Local and Foreign Remittance from 2011 to 2014

Most of the remittances sent to our country are for various livelihood purposes, such as disbursement of
Small loans, living expenses, business start up costs, medical treatment and funds for asset purchases.

4.21 Role of Remittances in the Economy

During the last decade or so inward remittance has emerged as the backbone of many developing
countries. Officially recorded data for workers remittances to developing countries rose to US $ 342
billion in 2013 up 73 per cent from 2009. More than half of the increase from 2009 to 2013 in remittances
occurred in China, India, Mexico and Philippines.

In Bangladesh Inward foreign remittance through Janata Bank Ltd. up to November 2013 is Tk.57523.19
million. Foreign remittance from NBR is reached record high of Tk. 47329 million in 2012 against
Tk.38991 million in 2011 and continuing to play an important supporting role in strengthening the
economy of the county Janata Bank ltd.

By reducing lead-time, has ensured quick delivery of foreign remittance, an NBR branch has been opened
to serve exclusively Non-resident Bangladeshis through Speedy Money Remittance System with instant
to the beneficiaries. Anybody willing to remit foreign currency from any corner of the world can use wide
network of the bank. The remittance reaches to the beneficiary within 3 days without charging any
commission. Our worldwide network includes 4 branches in UAE, 2 exchange houses in Italy and
correspondent relationship with all the major Banks and all important trade centers of the world.

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Chapter 05
Findings & Recommendation

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5.2 Findings
Remittance is sending money from one place to another through banking or authorized channel. Banks
earn maximum portion of non interest income from remittance. Noninterest income of a bank depends on
largely, the overall qualities of services of the bank. So the precondition for a banks prospects to provide
remittance service in modern and developed way, relevant expertise of the employees and customers

Remittance is important from the customers point of view, as it is easy, less expense, minimizing risk.
Remittance is important from the bankers point of view as Bank earn noninterest income, helpful for
other business and helpful for stable economic growth. Mainly the following parties are involved in

Applicant or Sender or Purchaser, who is sending money.

Drawer or Issuing branch which receive money and instruct other branch to make payment.
Drawee or paying branch which make payment.
Payee or Beneficiary who receive money.

Types of remittance:- Remittance is two types:-

Inland remittance
Foreign Remittance

Mode of Local remittance serves by the Janata bank:- As a public bank janata bank serves in the
following mode of remittance:-

Demand Draft (DD)

Mail transfer (MT) and
Telegraphic Transfer (TT)
Pay slip
Pay Order
Security deposit receipt(SDR)
Cash Management

Mode of Foreign Remittance serves by the Janata bank:-

FDD, FTT, FMT, TC, Cash Foreign Currency.

Problems Of remittance service in Janata Bank:-The problems of remittance

service in Janata Bank are as follows:-

Private Banks better remittance manager.

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Foreign remittance fluctuation needs to be stabilized.

Problems of Foreign Remittance:-

Low skilled lab.

High transportation cost .
Language barriers and a lack of understanding of the country's legal

Shortage of liquidity:-

The liquidity ratios measure the ability of a firm to satisfy its short Term obligations as they become due
for payment. In fact, liquidity is A Pre request for the very survival of a firm. The short-term Creditors of
the firm that funds of the firm that funds.

5.3 Recommendations
As an internee it is very difficult for me to give any recommendation with my little working experience
but I have tried my best to give best recommendations for the organization.

In collecting remittance, documentation must be easier for helping the clients for collecting

Fund sufficiency and server correctness is required while providing services to the clients of NRB

The bank should arrange some more training programs for their officials. Quality training will
help the officials to enrich them with more recent knowledge of International Trade and financing
as well different banking activities.

Installation required equipments and daily up gradation.

JBL should emphasize on its advertisement strategy to capture new customers.

The bank must need the establishment of R&D department.

Proving sufficient power supply facilities.

Taking of immediate steps of reducing employee turnover.

Should introduce new innovative and modern customer service options.

Enhancing its motivational activities.

Involvement of direct social investment.

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Reengineering its core business pattern.

JBL should utilize properly the Internship Program as one kind of promotional policy to
encourage its present and potential clients. Because, young generation plays a vital role in our
economy. To do so this bank should provide facilities to the internees through proper placement
and practical operations as well as job certainty to those who brings introduce themselves the best
performers in doing their particulars.

Security service must be established strongly and supervised properly.

Proper arrangement of necessary equipments and materials needed in every desk of each
department for providing prompt service.

JBL can change their working environment by creating positive attitude to their employees &
they should change their interior decoration.

JBL should give more freedom to their branches for taking decisions & their head office should
take decisions more quickly

JBL should use group incentives so that employee can share their experiences & strength & can
work smoothly..

JBL should give the quick services to the customer by the help of modern technology.

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Chapter 06

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As an internee of Janata Bank Ltd., I have truly enjoyed my internship from the learning and experience
viewpoint. I am confident that this three months internship program at Janata Bank will definitely help me
to realize my further carrier in the job market. As there are lots of local and foreign banks in Bangladesh
the Janata Bank Ltd., is promising commercial Bank among them. In this competitive market Janata Bank
has to compete not only the others commercial banks but also with the multinational Bank. Janata Bank
Ltd. is more capable of contributing towards economic development as compared with other bank.

The remittance has the great impact on national economy and the Janata bank as a part of serving
remittance service is also helps the country to economically stable. And this way the bank has also
achieve greater prospects in remittance service.

The bank also has some problem in remittance service. In order to increase remittance some strategy may
be taken by the bank.

Janata Bank Ltd. invested more funds in export and import business. It is obvious that the 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.

During the course of my practical orientation I have tried to learn the practical banking activities to
realize it with my theoretical knowledge, which I have greathearted and going to acquire from various
courses of my BBA program. I have tried my best to complete this report. I hope this report will help to
improve the company development.

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References/ Bibliography

Annual report of Janata Bank Limited (2013-2014).

Khan,Dr. Akbar Ali (2009), Ethics in Banking, Dhaka: Bangladesh Institute of Bank
Siddiqui, T. (1999) Migrant Workers Remittances and Micro-Finance in Bangladesh, Refugee
and Migratory Movements Research Unit, Dhaka.
Ratha, D (2005) Workers Remittances: An Important and Stable Source of External
Development Finance, Chapter 1 in S. M. Mainbo aled D. Ratha (Eds.) Remittances
Development Impact and Future Prospects, The World Bank.
Money Laundering & Terrorist Financing Risk Management Guidelines.
State of the Bangladesh Economy in FY2015 and the Closure of Sixth Five Year Plan.
Operational Manual of Janata Bank Limited .
Investment Manual of JBL .
Training documents of department officers.


Acosta, Pablo (2006) Labor Supply, School Attendance, and Remittances from International
Migration: The Case of El Salvador Policy Research Paper, World Bank, Washington, D.C.
OntentServer/WDSP/IB/2006/05/17/000016406_20060517115015/Rendered/PDF/wps3 903. Pdf.
Adams, R.H. and J. Page (2005), Do International Migration and Remittances Reduce Poverty in
Developing Countries? World Bank, Washington,D.C.
. pdf.

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Appendix 1
Highlight Of overall Activities at JBL 31 December 2014

[Source: Janata Bank Annual Report 2014]

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Appendix 2

Profit and Loss Account for the year ended 31 December 2014

[Source: Janata Bank Annual Report 2014]

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Appendix 3
Balance Sheet as at 31 December 2014

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[Source: Janata Bank Annual Report 2014]

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