Chapter 01: Introduction

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 1.1 Introduction

Bank is a business organization. Like all other business institutions, banks major objective is also
to earn profit. Bank is a financial institution that collects society’s surplus cash and gives a part
of that as loan to investors for earning profit. So bank is an intermediary institution that makes
relationship between the owners of surplus savings and the investor of deficit capital. Lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most countries.

Classify of bank in various ways. Classification cab be done on the basis of ownership, quality of
activities and operation of activities. According to activities, banks can be classified as central
bank, Commercial bank, Krishi bank, Shilpa bank, Co-operative bank, Exchange bank,
Investment bank, saving bank, Mortgage bank, Transportation bank, and bank for micro-industry
and the like.

Banks' activities can be divided into:

 Retail banking: dealing directly with individuals and small businesses;

 Business banking: providing services to mid-market business;
 Corporate banking:, directed at large business entities;
 Private banking: providing wealth management services to high-net-worth individuals
and families;
 Investment banking: relating to activities on the financial markets.

Southeast bank limited is a private commercial bank. That was established by leading business
personalities and eminent industrialists of the country with stakes in various segments of the national
economy. They established the Bank with a vision to bring efficient and professional banking service to
the people and the business community of Bangladesh to help the national economy grow. The incumbent

2
Chairman of the Bank is Mr. Alamgir Kabir, FCA, a professional Chartered Accountant. The Bank’s
Managing Director is Mr. Shahid Hossain, a young and eminent banker of the country with 30 years
experience in banking to his credit. The Bank’s operations are built upon unequivocal emphasis on
effective corporate governance. The objective is to create, promote and build long-term company value.
The Bank’s first and the highest priority are to provide effective services and maximum satisfaction to the
customers. The ethos of harmony and co-operation is widely practiced in the Bank. We take pride in the
fact that the public and private face of the Bank is one and identical. We believe that transparency in
decision-making, monitoring mechanism and full disclosure to shareholders and regulatory authorities are
essential aspects of Bank’s corporate governance and that they create an intense pressure to rationalize
Bank’s services and search for new competitive advantages. We work ceaselessly within these
parameters.

Total number of branches is 128. Ladies branches is 02, Islamic Banking branches is 05, foreign
correspondents is 807.

Starting Date of Business: The Bank’s journey began when it was incorporated as a Public Limited
Company on March 12, 1995. The Registrar of Joint Stock Companies and Firms issued the Certificate of
Commencement of Business of the Bank on the same date. The Southeast Bank received its Banking
License from the Bangladesh Bank on March 23, 1995.The Bank’s first branch was opened by Late M.
Saifur Rahman, the then Honorable Finance Minister of the Government of the People’s Republic of
Bangladesh as the Chief Guest at the commercial hub of the country at 1, Dilkusha Commercial Area,
Dhaka on May 25, 1995.

1.2 Origin of the report:

This internship report is originated as partial fulfillment of MBA program from Daffodil University.
University assigned me to do internship in Southest bank Hemayetpur Branch to gather practical
knowledge. This internship report titled “General Banking Activities of Southeast Bank Limitation”
suggested and guided by our honorable teacher Md. Arif Hassan. I am very thankful to my honorable
teacher for his help and guidance.

1.3 Objective of the report:

The major objective of the study is

1. To gather theoretical knowledge about the general banking activities.

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 2. To analyze the general banking practice of Southeast Bank Limited.

3. To identify the problem general banking of Southeast Bank Limited.

4. To recommend some suggestion to solve the identified problem

5. To relate the theoretical learning with the real life situation

The report is a prepared as part of practical orientation of MBA program a description of all
activities done by Southeast Bank, Hemayetpur Branch. The report is lively narration of various
banking activities like general banking activities and other ancillary services.

1.4 Scope of the study:

The duration of the study was three month. It was not enough to get a full practical knowledge
throughout internship program. It was very much hard to complete a report. So I had to complete
a report. The report covers only General Banking Services, Activities, and procedures of
Southeast Banking Limited.

1.5 Methodology of the Report

The study requires various types of information of present policies, procedures and methods
of General Banking Operation. Both primary and secondary data available have been used
in preparing this report.

Primary Data sources:

 Practical banking work.

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  Personal discussion with the officers and executives of Southeast Bank Limited.
 Personal interview with the customers.

Secondary Data sources:

 Daily diary (containing my activities of practical orientation in Southeast Bank

Ltd),
 Various publications on banking operation,
 Website of Bangladesh Bank,
 Website of Southeast Bank Limited,
 Annual Report of the Southeast Bank Ltd,
 Personal investigation with bankers,
 Different circulars issued by Head Office and Bangladesh Bank

1.6 Limitation of report:

To prepare a report on the topic like this in a short duration is not easy task. From the beginning
to end, the study has been conducted with the internship of making it as a complete and truthful
one. Preparing the report some problem and limitations have encountered which are as fellows :

 Lack of opportunity to access to internal data.

 Legal information is not available.
 Due to time limitation.
 Since the Bank personal were very busy, they could not pay enough time.

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 Chapter 02:

An Overview of Southeast Bank Limited

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 2.1 An Overview of Southeast Bank Limited

Southeast Bank Limited is a second-generation bank that was established in 1995with a dream
and a vision to become a pioneer banking institution of the country and contribute significantly
to the growth of the national economy. In its arduous journey since, Southeast Bank has
succeeded in realizing the dreams of those who established it. Today it is one of the country’s
leading banks in the private sector contributing significantly to the national economy. The
Authorized Capital of the Bank today is BDT 15,000 million. Its Paid-Up-Capital and Reserve
reached BDT 9169.50 millions on December 31, 2016. Number of outstanding shares is
916590176. The Bank had 2616 Staff of whom 280 were Executives, 1,700 were Officers and
636were others as on December 31, 2015.

The Southeast Bank was established by leading business personalities and eminent industrialists
of the country with stakes in various segments of the national economy. They established the
Bank with a vision to bring efficient and professional banking service to the people and the
business community of Bangladesh to help the national economy grow. The incumbent
Chairman of the Bank is Mr. Alamgir Kabir, FCA, a professional Chartered Accountant. The
Bank’s Managing Director is Mr. Shahid Hossain, a young and eminent banker of the country
with 30 years experience in banking to his credit. The Bank’s operations are built upon
unequivocal emphasis on effective corporate governance. The objective is to create, promote and
build long-term company value. The Bank’s first and the highest priority are to provide effective
services and maximum satisfaction to the customers. The ethos of harmony and co-operation is
widely practiced in the Bank. We take pride in the fact that the public and private face of the
Bank is one and identical. We believe that transparency in decision-making, monitoring
mechanism and full disclosure to shareholders and regulatory authorities are essential aspects of
Bank’s corporate governance and that they create an intense pressure to rationalize Bank’s
services and search for new competitive advantages. We work ceaselessly within these
parameters.

Total number of branches is 128. Ladies branches is 02, Islamic Banking branches is 05, foreign
correspondents is 807.

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2.2 Starting Date of Business

The Bank’s journey began when it was incorporated as a Public Limited Company on March 12,
1995. The Registrar of Joint Stock Companies and Firms issued the Certificate of
Commencement of Business of the Bank on the same date. The Southeast Bank received its
Banking License from the Bangladesh Bank on March 23, 1995.The Bank’s first branch was
opened by Late M. Saifur Rahman, the then Honorable Finance Minister of the Government of
the People’s Republic of Bangladesh as the Chief Guest at the commercial hub of the country at
1, Dilkusha Commercial Area, Dhaka on May 25, 1995.

2.3 Objectives of SEBL:

1. To establish as an institution for maximizing profits and to conduct overall economic

activities.

2. To collect savings or idle money from the public at a lower rate of interests and lend these
public money at a higher rate of interests.

3. To create propensity of savings amongst the people.

4. To motivate people for investing money with a view to bringing solvency in them.

5. To create money against money as an alternative for enhancing supply of money.

6. To build up capital through savings.

7. To expedite investments.

8. To extend services to the customers.

9. To maintain economic stability by means of controlling money market.

10. To extend co-operation and advices to the Govt. on economic issues.

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2.4 Mission:

A business mission will help us the vision into the reality and is the foundation for priorities,
strategies, plans and work assignment. Southeast Bank is very much concern about their mission
because it can only be revealed by the manager and resolved through the mission statement. The
mission of the hank is stated below:

 Establish high quality techniques to provide high quality financial service.

 Fast and accurate customer service.
 Balanced their growth strategy.
 Maintain high standard business ethics and maintain a good environment in their working
field.
 Maintain the shareholder’s return and equity.
 Innovative banking system at a competitive price.
 Deep commitment to the society and the growth of national economy.
 Have attractive and quality human resource.

2.5Vision:

It is especially important for managers and executives in any organization to agree upon the basic vision
of that firm to achieve its long term goal. A clear vision also provides a better foundation for developing a
comprehensive Mission statement. So establishment a vision statement is very mush necessary for every
firm that should fast and state forward. Southeast Bank also established their vision statement to achieve
their long-term objectives and goal. Their vision is to stand out as a pioneer banking institution in
Bangladesh and contribute significantly to the national economy.

2.6 Core values:

 Respects
 Fairness
 Business ethics
 Harmony

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  Courtesy
 Commitment
 Service Excellence
 Integrity

2.7 Structure of Southeast Bank Ltd, Bangladesh

Managing director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

First Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Executive Officer

Senior Officer

Officer

Junior Officer

Trainee Junior Officer

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 2.8 Structure of Southeast Bank Ltd Hemayetpur Branch

Mr Noor Alam; SAVP – Branch Manager

Mohommad Hymayan Kabir; FAVP – 1st Officer & Managing Operator

Mr Tareq Bin Ziad, Mr Nasimul Rayan; Executive Officers

Md Mokelasur Rahman; Officer

Mr Md Abu Ahmed Shorif; Junior Officer- Head of cash

Mr Belal Ahmed; Trainee Customer Service Officer

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 Chapter 03:
General Banking Activities of Southeast Bank
Limited

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3. General Banking Activities:

General banking is the starting point of all the banking operations. It is the department,
which provides day-to-day services to the customers. Every day it receives deposits from the
customers and meets their demand for cash by honoring cheques. It opens new accounts, remit
funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services every
day. General banking is also known as “retail banking”. To make a profile in business you need
to sell product or service. A bank does not product any tangible product to sell but dose offer a
variety of financial to the customer s. general banking is starting point of all the banking
operation. It is the department which provides day to day service to the customers. Since bank is
confined to provide the service every day.

General banking of Southeast bank:

1. Account opening
2. Remittance
3. Clearing
4. Cash
5. Accounting department

3.1 Account Opening Section:

To establish a banker and customer relationship account opening is the first step. Opening of
an account binds the Banker and customer into contractual relationship. But selection of
customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds
start by opening account. So, the Bank takes extremely cautious measure in its selection of
customers.

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The following works are done by this section-

1. Accepting of deposit
2. Opening of account
3. Check book issue
4. Closing of accounting

3.1.1Accepting of deposit:

Accepting deposits is one of the main classic functions of banks. The relationship between
a banker and his customer begins with the opening of an account by the former in the name of
the latter. Initially all the accounts are opened with a deposit of money by the customer and
hence these accounts are called deposits accounts. Banker solicits deposits from the members of
the public belonging to different lifestyles, engaged in numerous economic activities and
having different financial status. There are two officers performing various functions in this
department.

The deposits those are accepted by SEBL may be classified in to:

 Demand deposits
 Time deposit

3.1.2 Opening of account

It is said that, there is no banker customer relationship if there is no a/c of a person in that
bank. By opening an a/c banker and customer create a contractual relationship. However,
selection of customer for opening an account is very crucial for a Bank.

14
3.1.3Types of account:

There are several types of accounting:

A. Current account
B. Saving account
C. Fixed Deposit Receipt

3.1.3. A. Current account :

Both individuals and business open this type of account. Frequent transactions are (deposits as
well as withdrawal) allowed in this type of account. A current a/c holder can draw checks on his
account, any amount, and any numbers of times in a day as the balance in his account permits.

Main requirements for opening current account:

i. Two copies of passport size photograph.

ii. Photocopy of NID card
iii. Memorandum and Articles of association .(limited company)
iv. Certificate of incorporation’ (limited company)
v. Up to date trade license.(organization)
vi. Photocopy of VAT certificate.
vii. IRC and ERC copy’

Main procedure to open CD A/C:

i. An initial deposit is required for opening of the a/c

ii. Minimum balance is to be maintained in the a/c
iii. All required information and papers as per terms mentioned in the accounting opening
form.

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 Activities & Pares Necessary for Opening an Account

(A) Joint Account:

If the account is a joint account, then the joint account holder should submit a declaration and operational
instructions of the account along with their signature.

(B) Partnership firm:

The following documents have to be submitted for preparing an account of a partnership firm:
i) Partnership deed.

ii) (a)If the partnership firm is a registered one, then one copy of registration forms.

(b) If not, then a copy of certificate from the notary public.

(C) Limited Company:

For the opening of an account of a limited company, following documents have to be submitted:

i) A copy of resolution of the company that the company decided to open an account in the
Southeast Bank.

ii) Certified true copy of the Memorandum & Articles of Association of the Company.

Iii) Certificate of Incorporation of the company for inspection and return along with a duly
Certified Photocopy for Bank’s records.

iv) Certificate from the Registrar of Joint Stock Companies that the company is entitled to commence
business (in case of Public Ltd. Co. For inspection and return) along with a duly certified Photocopy for
Bank’s records.

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v) Latest copy of balance sheet.

vi) Extract of Resolution of the Board/General Meeting of the company for opening the account and
authorization for its operation duly certified by the Chairman/Managing Director of the company. List of
Directors with address (a latest certified copy of Form)

(D) Club/Society:
Following documents have to be obtained in case of the account of the club or society:

i) Up to date list of office bearers.

ii) Certified copy of Resolution for opening and operation of account.

iii) Certified copy of Bye Law and Regulations/Constitution.

iv) Copy of Government Approval (if registered).

(E) Co-operative Society:

Following documents have to be obtained in case of the accountof Co-operative Society:

I. Copy of Bye-Law duly certified by the Co-operative Officer.

II. Up to date list of office bearers.
III. Resolution of the Executive Committee as regard of the account.
IV. Certified copy of Certificate of Registration issued by the registrar, Co-operative societies.

(F)Trustee Board:

Following documents have to be obtained in case of the account of trustee board:

i) Prior approval of the Head Office of SBL.

ii) Certified copy of Deed of Trust, up to date list of members of the Trustee Board and certified
copy of the Resolution of Trustee Board to open and operate the account.

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(G) Minor’s Account:
Following documents have to be obtained in case of the account of minor:

i) Putting the word “MINOR” after the title of the account.

ii) Recording of the special instruction of operation of the account. The AOF is to be filled in
and signed by either the parents or the legal guardian appointed by the court of law and not
by the minor.

3.1.3. B. Saving account:

Individuals for savings purposes open this type of account. Current interest rate of these accounts
is 06% per annum. Interest on SB account is calculated and accrued monthly and Credited to the
account half yearly. Interest calculation is made for each month based on the lowest balance at
credit of an account in that month. A depositor can withdraw from his SB account not more than
twice a week up to an amount not exceeding 25% of the balance in the account. If anyone
withdraws money more than twice he/she will not get the interest for that month.

Main requirements for opening saving account:

 An initial deposit is required for opening of the a/c

 Minimum balance is to be maintained in the a/c
 A saving account may also be opened in the name of a minor which has to be operated by
the minors guardian.
 An account in the name of an illiterate person can also be opened which is to be operated
by the account holders thumb impression.
 Up to date trade license. (organization)
 Photocopy of TIN certificate
 All required information and papers as per term mentioned in the account opening form.

Main procedure to opening saving account:

 An initial deposit is required for opening of the A/C

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  Minimum balance is to be maintained in the a/c photocopy of TIN certificate

3.1.3. C. Fixed Deposit Receipt:

A deposit which is payable at a fixed date or after a period of notice is a time deposit. In
SEBL Hemayetpur Branch (Islamic Banking) accepts time deposits through Mudaraba Term
Deposit Receipt (MTDR), Mudaraba Short Noticed Deposit (MSND), and Mudaraba Schemes
etc. While accepting these deposits, a contract is done between the bank and the customer. When
the banker opens an account in the name of a customer, there arises a contract between the two.
This contract will be a valid one only when both the parties are competent to enter into contracts.

Main requirements for opening Fixed Deposit Receipt:

 Passport size photocopy’

 Photocopy of NID card
 Photocopy of TIN certificate
 Board resolution for opening of account and operation of account (limited company)
 Memorandum and Articles of association (limited company)
 Certificate of incorporation (limited company)

Main procedure to opening Fixed Deposit Receipt:

 An initial deposit for any term of fixed deposit is required for opening an a/c
 Minimum balance is to be maintained in the a/c photocopy of TIN certificate , if any all
required information as per terms mentioned in the account opening form
 Interest will be paid to the account as per contract of fixed deposit term.

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3.2 Remittance Section:

Remittance of fund is a very crucial service of SEBL. The major function of commercial Banks
is mobilization of fund. Other than this, banks provide ancillary services to its clients. Clients
need to remit money from one place to another for their business or other purposes. Banks fulfill
this need of customers by means of remittance service. Money can be remitted domestically or
internationally, which known as local remittance and foreign remittance.

There are three ways of transferring fund domestically. The modes of transferring funds are:

 Pay- Order (PO).

 Demand Draft (DD).
 Telegraphic Transfer (TT).

3.2.1 Payment Order / Pay Order (P.O)

This is an instrument issued by the branch of a bank for enabling the Customer/Purchaser to pay
certain amount of money to the order of a certain person/firm/organization/office within the
same clearinghouse area of the pay order-issuing branch.

3.2.2 Characteristics of P.O

 The issuing branch and paying branch are same.

 Application for payment within the clearinghouse area of the issuing branch.
 This may be open or can be crossed.
 No charge for issuing pays order for account holder.

Demand Draft (D.D)This is an instrument through which customer’s money is remitted to

another person/firm/organization in outside the clearinghouse area from a branch of one bank to
an outstation branch of the same bank or to a branch of another bank (with prior arrangement

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between that bank with the issuing branch). This is an order instrument in which the issuing
branch gives instruction to the payee/drawer branch to pay certain amount of money to the order
of certain person/firm/organization. Commission, vat and postage are charged on issue of DD
entries for issuing DD.

Telegraphic/ Telephonic Transfer (T.T)

This is a mode of transfer of customer’s money from a branch of one bank to another branch of
the same bank through telegraphic/telephonic message. The issuing branch used to send the
message of such remittance through telegraph/telephone adding certain code number or test
number on the basis of test key apparatus developed by the concerned bank for its different
branches. The drawer and the payee are required to have account with the bank in order for this
transaction to take place. TT is issued against cash, check, letter of instruction etc.

Characteristics of T.T

 Issued by one branch to other branch and message is tale-communicated.

 Remittance/ transfer of money is done through tested tale-messages.
 Remittance is affected on the basis of tested message.
 Test key apparatus is required.
 No charge for issuing pays order for account holder.

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3.3 Bills and Clearing Section:

Clearing and bills section is an important section of General Banking. This is the section through
which branch has to clear it’s inter branch and interbank transaction. Customers do pay and
receive the collecting branch the system is known as IBC.

Meaning:

The growth of banking habits among the people has led to greater use of cheque facility by them.
The number of banks and their offices are also constantly on increase. Every bank receives daily
hundreds of cheques, drafts etc., on other banks. One method of collecting the money of such
cheques, drafts etc. are to send an official to every drawee bank. This method is bound to prove
costly and tedious. The other alternative is to fix a common place where officials of different
banks may meet daily to settle interbrain claims. Such a method is simple and convenient since it
does not involve unnecessary traveling and actual handling of cash. The common place so fixed
is termed as banker’s clearing house.

A clearing house may, therefore, be defined as an organization of barks constituted for the
purpose of settling inter-bank liabilities due to transfer of deposits by a customer of a particular
bank to that of another bank.

Mechanism:

The mechanism of working of a clearing house in general is as follows:

(i) Every bank of the locality which is a member of the clearinghouse prepares a bank-wise list
of cheques received from customers and drawn on different banks of the locality.

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(ii) An official of each bank visits the clearinghouse with the cheques and their list in the
morning. He delivers the cheques to the officials of the respective banks. Similarly, he also
receives the cheques drawn on his bank from the officials of the other banks.

(iii) The officials return to their respective banks to meet again in the afternoon to return any
dishonored instruments to the officials of the respective banks.

(iv) The official of each bank computes the final balance payable or receivable by his bank from
other banks after taking into account the various amounts of receipts and payments.

(v) The final settlement is effected by the supervisor of the clearinghouse by debiting or
crediting, as the case may be, the accounts of the respective banks as maintained with the
clearinghouse.

Types of Clearing

1. Outward Clearing: Outward clearing means when a particular branch receives instrument
drawn on the other bank within the clearing zone and those instruments for collection through
the clearing arrangement is considered as outward clearing for that particular branch.

2. Inward Clearing: In world cheque are those ones drawn the respective branch which has
been represented on other bank will be cleared. When a particular branch receives instruments
which on them and sent by other member bank for collections are treated as inward clearing.

Accounting treatment

Customers……………..A/C ……. DR

General………………..A/C …… CR

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Outward Bills for Collection (OBC):

Customers deposit cheque, drafts etc. for collection, attaching their deposit slip. Instruments
within the range of clearing are collected through local clearinghouse. But the other, which is
outside the clearing range, is collected through OBC.

Inward Bills for Collection (IBC):

In this case bank will work as an agent of the collection bank. The branch receives a forwarding
letter and the bill. Next steps are:

 Entry in the IBC register, an IBC number given.

 The instrument is sent to clearing for collection.

An IBC is dispatched in this regard. If dishonored: in this case the instrument is returned to the
collecting branch along with return Memo indicating the cause of dishonored.

3.4 Cash Section:

Cash section is an important section where cash transactions are made. Cash sections
demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid money.
Maximum concentration is given while working on this section. Tense situation prevails if there
is any imbalance in the cash account. There are various systems maintain by cash officer that is
under:

 Vault
 Cash Payment
 Cash Receive
 Transaction after banking hour.

The cash department is the riskiest department of the bank. This is the section where tight
security is required to avoid any accidents. There is a limit to be amount of cash that each
counter can carry; carrying of excess cash is avoided for safety reasons.

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Cash Receipt

When clients deposit cash in the bank, the bank officer on receipt of the cash and the pay in
slip/credit voucher shall:

 Check and count the received cash.

 Make sure that the amount in word and number in the deposit slip are same.
 Check the account title and the number.
 Both the deposit slip is in order.
 Depositor’s signature is in the slip.
 Receive seal in the slip is a must.
 Write the domination of the currency at the back of the pay in slip or the credit voucher
and affix stamp in the slip/voucher.
 Enter particulars of in slip/credit voucher in the receiving cash officer book.
 At least, send the pay in slip/voucher to the deposit department or to the respective
department.
 Deposit slip must be signed by the respective officer.
 Carbon copy of the deposit slip must be handover to the client with proper seal and
signature.

Cash Payment

Cheques, demand drafts, pay orders, pay slips and debit cash vouchers etc. are received from
various departments for payment of cash to customers/payees. Prior payment of cash it is the
officer’s duty to make sure that the cheque/or the instrument has been genuinely passed. The
following common precaution is thoroughly practiced before honoring a cheque:

25
  Check of it is an open or crossed check.
 The branch name in the cheque.
 The date in the cheque is very crucial. Cheques are normally valid six months and pre-
dated cheques are asked to present after the date given.
 Tk in words and figure of the cheque is same.
 Balance in the account is available.
 The apparent tenor of the cheque. Whether any figure, date or anything has been altered
in the cheque presented. If any, then the respective officer must check whether the client
is making his signature for alteration or not.
 The specimen card signature and signature in the cheque should match.
 Signature of recipient is obtained on the reverse of cheque.
 In case, where a prior arrangement has been made with the bank, a client may overdraw
against a cheque.

Books maintained by cash department:

Vault Register: In this book the amount of cash available in the branch is maintained. That is,
the amount in the vault register book.

Cash Receive Register: This register keeps record of all incoming cash.

Cash Payment Register: Similar to the cash register book, this book keeps tracks of all
outgoing cash that is all payments.

Daily Cash Balance Register: This is the book where cash balance is recorded by counting the
notes and coins that are physically available. The balance in this book is compare with the vault
register, which should be the same. In case there is an error, then the figures would not match but
if no discrepancy is found then anything is to be worried about.

26
Mail Receive and Dispatch Section:

Banking is the business of correspondence. Lot of mail comes to the bank and dispatch from the
branch daily. Loss of any document causes much loss for bank. That is why bank has to record
all mail received and dispatched through the bank.

Mail receiving:

All mail comes to the bank recorded in this desk. For this reason a register book maintained
called inward mail register. A number is given on receiving mail and records particulars of
document in the register book.

Mail Dispatching:

Before dispatching mail from the bank, it must record in outward mail register. A number is
given on the mail. Destinations, date of dispatch are recorded in that register book.

3.5 Accounts Department:

Accounts Department is called as the nerve Centre of the bank. In banking business, transactions
are done every day and these transactions are to be recorded properly and systematically as the
banks deal with the depositors‟ money. Any deviation in proper recording may hamper public
confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will
lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank
provides a separate department; whose function is to check the mistakes in passing vouchers or
wrong entries or fraud or forgery. This department is called as Accounts Department. Besides the
above, the bank has to prepare some internal statements as well as some statutory statements

27
which to be submitted to the central bank. Accounts Department prepares these statements also.
The department has to submit some statements to the Head office, which is also consolidated by
the Head Office later on. The tasks of the department may be seen in two different angles.

3.5.1 Daly Task:

 The routine daily tasks of the Accounts Department are as follows,

 Recording the transactions in the cashbook
 Recording the transactions in general and subsidiary ledger
 Preparing the daily position of the branch comprising of deposit and cash.
 Preparing the daily Statement of Affairs showing all the assets and liability of the branch
as per General Ledger and Subsidiary Ledger separately.
 Making payment of all the expenses of the branch.

 Recording inter branch fund transfer and providing accounting treatment in this regard.
 Checking whether all the vouchers are correctly passed to ensure the conformity with the
“Activity Report”; if otherwise making it correct by calling the respective official to
rectify the voucher.
 Recording of the vouchers in the Voucher Register.
 Packing of the correct vouchers according to the debit voucher and the credit voucher.

.
3.5.2 Periodic Task:

 Preparing the monthly salary statements for the employees.

 Publishing the basic data of the branch.

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 Preparing the weekly position for the branch which is sent to the Head Office to maintain
Cash Reserve Requirement (C.R.R)
 Preparing the monthly position for the branch which is sent tothe Head Office to maintain
Statutory Liquidity Requirement (S.L.R)
 Preparing the weekly position for the branch comprising of the break up of sector wise
deposit, credit etc.
 Preparing the weekly position for the branch comprising of denomination wise statement
of cash in tills.
 Preparing the budget for the branch by fixing the target regarding profit and deposit so as
to take necessary steps to generate and mobilize deposit.
 Preparing an „Extract‟ which is a summary of all the transactions of the Head Office
account with the branch to reconcile all the transactions held among the accounts of all
the branches

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Chapter 4: Analysis and Findings of Annual Reports

30
4.1 Analysis

4.1.1 Deposit Account

Deposit Amout in BDT million

Series1 Series2

229,973
210,431
189,473
177,519
152,901

2012 2013 2014 2015 2016

Graph 1: Deposit Amount

It is the grape of yearly Deposit amount of SEBL from 2012-2016. Deposit amount is steadily
increasing over the year. In the year it was 15201 million and 2016 it increased to the amount of
229973 million which 50%more then 2012. Though there was a liquidity crisis in the banking
sector the bank has mobilized a deposit of Tk. 8515.19(m) at the year 31st December 2012. It was
steadily increased up to year 2016.

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4.1.2 Saving Account

Saving Deposit Amount in BDT

million
Series1 Series2

19700.58
18419.86

14118.81 13531.28

8515.19

2012 2013 2014 2015 2016

Graph 2: Saving Deposit.

It is the grape of yearly Saving Deposit amount of SEBL from 2012-2016. It has a fluctuation
trend 2012 to 2014. In 2012 it had the amount 8515.19(m) which increased by 39% in 20123
and also decreased by 4.34 %in 2014. In 2015 in increased by 26.54% and now has a steady
growth.

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4.1.3 Current Account

Current Deposit
Series1 Series2
30285.06
23179.89
18935.05
12201.09 14212.91

2012 2013 2014 2015 2016

Graph 3: Current Account

It is the grape of yearly Current Deposit amount of SEBL from 2012-2016.it is increasing over
the year. Increasing rate of the CD was 14.16% in 2013. After the year 2013, it has a steadily
increasing trend up to year 2016. And the growth rates are 24.94%, 18.31%, 23.46% respectively
year 2014, 2015, 2016.

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4.1.4 Fixed Deposit

Fixed Deposit
Series1 Series2

173438.93
166704.14
154304.2
147273.21
130429.45

2012 2013 2014 2015 2016

Graph 4: Fixed Deposit

It is the grape of yearly Fixed Deposit amount of SEBL from 2012-2016. It increasing trend the
five years. In 2013 it was increased by 11.44%. in 2014 it was 44.56%. in the year 2015 and
2016 it increased by 7.44% and 3.88% respectively. So over the year , there is a fluctuating
growth rate.

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4.1.5 Loan and Advance

Loan and Advance

Series1 Series2

191,866
168,878
147,071
126,969 134,864

2012 2013 2014 2015 2016

Graph 5: Loan and Advance

It is the grape of yearly Loan and Advance amount of SEBL from 2012-2016. In this sector,
SEBL is playing an important role in the investment of idle money of bank. And investment is
increasing year by year, which is good for the bank to get profit from the investment sector.
Compared to 2012 the loan advance increased more than 51% in 2016.

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4.1.6 Net operating Income

Net Operating Income in BDT million

Series1 Series2

11,604 12,852
11,617
9,685
7,832

2012 2013 2014 2015 2016

Graph 6: Net operating Income

We can see it is the grape of yearly Net Operating Income amount of SEBL from 2012-2016. In
2012 it was 7,832 million BDT. The next two years it is increased a bit that amount was 9685
and 11,617 million BDT. In 2015 it was decreased amount 11,604 million BDT. I can see that
last year 2016 increase in Net Operating income amount was 12,852 million in BDT.

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4.2 Finding

Southeast bank limited has focused on enhancing the long term sustainability of the bank,
building value for the shareholders, employee, and wider community. Its activities are driven by
ethical business practices and sense of responsibilities to all stakeholders. From the above
analysis and practical experience during internship period some findings are follows:

 Deposit increases over the years but the amount of fixed deposit is very high(around
75%). As the interest rate is high on fixed deposit, therefore they have to give more
interest to customer.
 Loan and advance performance are also good as they increase the loan amount about
51% in last five years.
 Loan to deposit ratio is more than 83%in 2016 that shows a well balance investment of
the bank.
 According to the clients, introducer is one of the problems to open an account. If a
person who is new in the city wants to open account, it is a problem for him or her to
arrange an introducer of SB of CD account holder.
 Insufficient modern sophisticated technology change such as use of new software there
are few staff who are lacking in computer knowledge and are not efficient chough to
finish every task immediately. So, before utilizing new technology proper training
should be arranged.
 Inadequate skilled manpower in Southeast Bank Limited, because there is lack of proper
training arrangement of employees in the general banking section.
 Lengthy process of issuing chequie book, Pay order, Bank draft cause. Job
responsibilities are not specified to each and every employee of this division.
 Online banking is not so strong.

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 Chapter 05:

Recommendations and Conclusion

38
5.1 Recommendations:

The report gave valuable insights as to where improvements were necessary to improve the
quality of service. As per earnest observation some suggestions for the improvement of the
situations are given below:

 To increase the saving deposit rather than fixed deposit by offering different schemes.
 Loan performance will be more effective if they invest in different sectors.
 Bank should formulate simple process fore issuing cheque book, Pay order, and bank
draft.
 Online service site must be introduced and must make it familiar to use to customer by
easy way.
 Branch can arrange training program on different banking rules and regulation set by
Bangladesh bank which will optimize the efficiency of employees.
 Branch should established Foreign Exchange Department to acquire more potential
customers.
 They can start mobile banking what already launched in other bank.
 They may use modern software to provide service faster to the clients. Because they are
using easy banking software in banking activities which is old.
 More training should be given to the rural employees. Experiential employee should be
hired.
 All old equipments must be replaced with new one and should decorate the internal site
newly.
 Establishment of more ATM Both. It is clear that customers are not very happy regarding
availability of ATM both of Southeast Bank Limited.

Banks are highly ambitious in Bangladesh. The achievement of one bank depends on the better
service from the bankers to customers.

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5.2 Conclusion:

During the three months of internship program at Southeast Bank Hemayetpur Branch almost
all the desk have been observed more or less other than General Banking Activities.
This practical program, in first has been arranged for gaining knowledge of practical banking and
to compare this practical with theoretical knowledge. Comparing practical knowledge with
theoretical involves identification of weakness in the branch activities and making
recommendations for solving the weakness identified. Through all departments and sections are
tried to cover in which I got the chance to gather practical experience for the internship program;
it is not possible to go to the depth of each activities of branch because of time limitation.
However, highest effort has been given to achieve the objectives the internship program.

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 References

Books, Periodicals, and Annual Report

1. Annual Report of Southeast Bank (2012-2016).

2. Bangladesh Bank Guideline for General Banking.
3. Practical participation.
4. Informal face to face conversation with the employee of SEBL.

Websites

1. Basic information[WWW] Available From https://www.southeastbank.com.bd/

2. about Southeast Bank Limited [WWW] Available from
https://en.wikipedia.org/wiki/Southeast_Bank_Limited
3. Bangladesh Bank [WWW] Available from https://www.bb.org.bd/

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