An Internship Report

ON

“General Banking Activities of Dutch Bangla Bank Limited”

(A Study on Sylhet Branch, Sylhet)

Submitted By:
Goushia Akther
ID No: 161-116-052
Batch: BBA 38th
Major in Accounting Information Systems
Department of Business Administration
Metropolitan University, Sylhet.

Submitted To:
Md. Alaul Haque
Senior Lecturer
Department of Business Administration
Metropolitan University, Sylhet.

Submission Date: 12th December, 2019

 LETTER OF SUBMISSION
12th December, 2019

Md. Alaul Haque

Senior Lecturer
Department of Business Administration
Metropolitan University, Sylhet.

Subject: Submission of the Internship Report.

Dear Sir,

It is my pleasure to present this Report on “General Banking Activities of Dutch

Bangla Bank Limited-A Study on Sylhet Branch, Sylhet” as a requirement for
completing my Bachelor of Business Administration. I enjoyed preparing the report
though it was challenging to finish within the given time. In preparing this report, I have
tried my level best to include all the relevant information related to general banking
activities of Dutch Bangla Bank Limited.

I have a strong belief that the report will fulfill your expectation and I have tried to give
my best effort so that I can prepare a solid report as per your instruction. I would be
very grateful if you accept my report. Your kind consideration and cooperation will be
highly appreciated.

Sincerely yours,

.............................

Goushia Akther
ID No: 161-116-052
Batch: BBA 38th
Major in Accounting Information Systems
Department of Business Administration
Metropolitan University, Sylhet.
12th December, 2019

CERTIFICATE OF ACCEPTANCE

It is to certify that Goushia Akther, Student ID: 161-116-052, a student of Bachelor of

Business Administration (BBA), Metropolitan University, Sylhet has prepared this

Report titled “General Banking Activities of Dutch Bangla Bank Limited-A Study on

Sylhet Branch, Sylhet”. Degree under my supervision.

She is found sincere and active. I wish her success in life.

Md. Alaul Haque

Senior Lecturer
Department of Business Administration
Metropolitan University, Sylhet.

AI-Hamra, Zindabazar, Sylhet-3100. Bangladesh.

Phone: +880 821 816198, 816199 Fax: +880 821 713304 E-mail: info@metrouni.edu.bd
www.Metrouni.edu.bd
Established in 2003, Metropolitan University is approved by
the Government of the Peoples Republic of Bangladesh and the University Grants Commission of Bangladesh.
 ACKNOWLEDGEMENT

At first, all praises belongs to the Almighty Allah, the most clement, most generous and

bounteous to all living creatures and their actions. In preparing this report of Dutch

Bangla Bank Limited, I have received commendable support from all the employees of

Dutch Bangla Bank Limited, Sylhet Branch, Sylhet.

I am very much grateful to my organizational supervisor Mr. Md. Tahmid Bakht, Senior

Assistant Vice President & Manager, Dutch Bangla Bank Limited to give the opportunity

to work on the Sylhet Branch. He has given me all kind official support to complete the

report perfectly. I like to thank Mr. Sushil Kumar Dash, Assistant Vice President &

Deputy Manager, Dutch Bangla Bank Limited for helping me in every aspect for the

completion of the report.

I am very much indebted to my supervisor Md. Alaul Haque, Senior Lecturer,

Metropolitan University for giving me direction at different times to prepare this report.

It is his guided supervision that resulted in successful completion and timely

submission of the report.

 EXECUTIVE SUMMARY

In recent years banks have diversified their services by creating new subsidiaries that perform

additional services or by merging with other types of financial institutions. Dutch Bangla

Bank Ltd. was established as a banking company. There are different types of activities

involved in the banks. A bank collects money from the people through some special types of

products and all the collected money invests in the different sectors at higher interest rates.

This investment process is dealt in the loan and advance departments of Dutch Bangla Bank

Limited. As an intern in Dutch Bangla Bank Limited, this internship report has been

prepared. This report aims toward providing an Analysis of General Banking Activities of

Dutch Bangla Bank Limited. While preparing this report it has been tried to reveal the

insights of the general banking system of the bank. While discussing the different aspects of

general banking activities of the bank, priority has been given to depict the real situation in

Dutch Bangla Bank Limited are concerned by employing the experience gathered during the

internship program. It is focused some theoretical aspect of the general banking in this report.

From the analysis of the findings during internship period a few recommendations were also

prescribed in this report. Analysis on the findings is basically done to sort out the major

aspects of the general banking systems and to draw some significant inferences. This report

will provide the critical aspect of the general banking of the Dutch Bangla Bank Limited.
 Table of Content

Contents Page No
Chapter: - 01 Indirection
1.1 Introduction of the Report
1.2 Objectives of the Report
1.3 Scope of the Report
1.4 Methodology of the Report
1.4.1 Sources of Data
1.5 Limitations of the Report
Chapter: - 02 Banking Industry in Bangladesh
2.1 Evolution of Banking
2.2 Understanding Banking History
2.3 World History of Banking
2.4 Banking in Ancient and British Period
2.5 The Banking History of Bangladesh
2.6 Banking in Bangladesh
2.7 Types of Bank in Bangladesh
2.8 Factors affecting change in Banking System
Chapter: - 03: Overview of Dutch Bangla Bank Ltd
3.1 Introduction
3.2 History of DBBL
3.3 Our Mission, Vision & Core Objective of DBBL
3.4 Organizational (General) Hierarchy of DBBL
3.5 Departments of DBBL
3.6 Company Information
3.7 Focus of DBBL
3.8 Services and Products
3.9 Banking Products
3.10 ATM Services
3.11 Account Service
3.12 DBBL Internet Banking
3.13 Awards
Chapter-04: General Banking Activities of DBBL
4.1 General Banking Procedures of DBBL
4.2 Function Of GB Department
4.3 Account Opening
4.4 Accounts & ATM Section
4.5 Transfer of Account
4.6Remittance Section
4.7 Clearing Section
4.8 Closing of Account
4.9 Functions of Cash Department
Chapter: - 05: Description of each task completed during Internship
5.1 My Job as an Intern
Chapter: - 06: Application of Knowledge Gained During BBA Program to Accomplish
Each Task
6.1. Knowledge gained during BBA Program to Accomplish Each Task
Chapter: - 07: AIS Practices in DBBL
7.1. Activities Related to Accounting Information Systems (AIS)
Chapter: - 08: Findings, recommendations & Conclusion
8.1 Findings
8.2 Recommendations
8.3 Conclusion
Appendix-1
Appendix-2
Chapter: - 01
Introduction

Page 1 of 60
1.1 Introduction of the Report:
The student undertakes Bachelor of Business Administration (BBA) at MU shall have to go
for internship to an organization for 12 weeks together practical knowledge and experience.
Internship is an arrangement by which a student works in an organization for a limited period
in time. Achievement of high economic growth is the basic principles of present economic
policy. In achieving the objectives, the banking sector plays an important role. The banking
sectors channel resources through deposit mobilization and providing credit for different
business venture. The successful running of a bank business depends upon how effectively
the credit management recovered the funds.
1.2 Objectives of the Report:
Behind this report, there have some objectives, which must have to fulfill. There both have
some general objective and specific objectives.
1.2.1. General Objective -
 To fulfill the partial requirement of BBA program and to gain practical knowledge on
the range of activities, policies associated with assess the performance of DBBL
General banking activities in both absolute and relative term in a comparative manner.
1.2.2. Specific Objective -
 To fulfill academic requirement.
 To know about products of DBBL that it offers to the customer.
 To analyze the status of different parameters of DBBL overall banking activities
dealings which contribute to the economy of this country?
 To gain practical knowledge in banking.
 To identify major strength and weakness of DBBL in respect to other Banks.
 To recommend ways and means to solve problems regarding banking.
1.3 Scope of the Report:
The scope of this report is very limited to the Dutch Bangla Bank Ltd., Zindabazar branch,
Sylhet only. To the investigation, observance and practices the activities of DBB, Zindabazar
branch, Sylhet during my internship period and to go through some documents and reports.

1.4 Methodology of the Report:

1.4.1 Sources of Data

Page 2 of 60
The following sources have been used for the purpose of gathering and collecting data as
required.
Primary Sources
 Practical deskwork
 Expert opinion from the officers
Secondary Sources
Data was also collected from various manuals, journals, publications as well as web sites.
 Official records of DBBL
 Annual report
 Working Papers
 Office Files
 Periodical published by Bangladesh Bank
 Selected Books
 Printed Forms
 Published & Unpublished Documents
1.5 Limitations of the Report:
There were some problems while I have undergone the internship program. A wholehearted
effort was applied to conduct the internship program and to bring a reliable and fruitful result.
In spite of having the wholehearted effort, there exits some limitations, which acted as
barrier. The limitations were:
 The study was limited only to the Dutch Bangla Bank Limited, Zindabazar Branch.
 Another problem was time constraint. The duration of my internship program was
only three months. But this time is not enough for a complete and fruitful study.
 The Bank was a busy one having heavy rush of people, whom officers needed to deal
with. So allocation of time for an internet is very much hard for the officers of the
bank.
 Confidentiality of Data

Page 3 of 60
 Chapter: - 02
Overview on Banking Industry

Page 4 of 60
2.1 Evolution of Banking:
The history of banking evolution is very interesting. In the early ages human life and wealth
was not secure. Due to fear theft people buried their wealth under land but this method was
not satisfactory. People started to search the custodians of wealth. The evolution of banking
started and it has crossed the following stages.
2.1.1 First stage of evolution:
After a great struggle people succeeded in findings the reliable persons to deposit their money
and valuable goods for safety. These people were goldsmiths. These were considered the
most trusted person due to their sound financial position. On the other hand, they have very
strong iron safes for keeping gold, money and their variable items. People started depositing
their gold hand cash in the safe of goldsmiths. Gold smiths charged something for this
purpose and they returned the depositors their money whenever they needed. It was the first
stage of banking evolution and goldsmiths were the early bankers.
2.1.2 Second stages of evolution:
During these period those receipt which were issued by the goldsmiths against the valuable
goods were being used as a medium of exchange by the merchants. People purchased the
various things from the traders against their receipts. Traders also started accepting the
receipts against them payments. So the receipt was used just like the bank cheque of the
modern age.
2.1.3 Third stage of evolution:
This period started at that time when goldsmiths came to know by experience that people are
using their receipts as a medium of exchange and very few people demand their deposits. So
they reach their conclusion that they may lend some portion of their total deposits to some
other people and they can earn profit. Goldsmith started the business of lending. They also
started paying interest to attract the depositors of net cash. Now this business became very
profitable, so the traders and money lenders also jumped in this field.
2.1.4 Fourth stage of evolution:
It was started at the time when people were tempted to deposit more and more cash of the
traders, money lenders and goldsmiths to earn maximum interest. On the other hand number
of borrowers also increased borrowing the money. So for the borrowing and lending business
regular institutions came in to being.
Keeping in view the above discussion about evolution of bank we can say that it is the result
of the different activities of goldsmiths, merchants and money lenders. They are the real

Page 5 of 60
founder of modern banking business. All the basic function of modern bank like accepting
deposits, advancing loans and money creation are similar with the founders.
2.2Understanding Banking History:
The history of banking began when empires needed a way to pay for foreign goods and
services, with something that could be exchanged more easily. Coins of varying sizes and
metals served in the place of fragile, impermanent paper bills.
These coins, however, needed to be kept in a safe place. Ancient homes did not have the
benefit of a steel safe, therefore, most wealthy people held accounts at their temples.
Numerous people, like priests or temple workers whom one hoped were both devout and
honest, always occupied the temples, adding a sense of security.
Historical records from Greece, Rome, Egypt, and Ancient Babylon had suggested that
temples loaned money out, in addition to keeping it safe. The fact that most temples were also
the financial centers of their cities is the major reason that they were ransacked during wars.
Coins could be hoarded more easily than other commodities, such as 300-pound pigs, so there
emerged a class of wealthy merchants that took to lending these coins, with interest, to people
in need. Temples generally handled large loans, as well as loans to various sovereigns, and
these new money lenders took up the rest.
2.2.1 Visa Royal:
Eventually, the various monarchs that reigned over Europe noted the strengths of banking
institutions. As banks existed by the grace, and occasionally explicit charters and contracts, of
the ruling sovereignty, the royal powers began to take loans to make up for hard times at the
royal treasury, often on the king's terms. These easy finance-led kings into unnecessary
extravagances, costly wars, and an arms race with neighboring kingdoms that would often
lead to crushing debt.
In 1557, Phillip II of Spain managed to burden his kingdom with so much debt (as the result
of several pointless wars) that he caused the world's first national bankruptcy — as well as
the world's second, third and fourth, in rapid succession. This occurred because 40% of the
country's gross national product (GNP) was going toward servicing the debt. The trend of
turning a blind eye to the creditworthiness of big customers continues to haunt banks up into
this day and age.
2.2.2 Adam Smith and Modern Banking:
Banking was already well established in the British Empire when Adam Smith came along in
1776 with his "invisible hand" theory. Empowered by his views of a self-regulated economy,

Page 6 of 60
moneylenders and bankers managed to limit the state's involvement in the banking sector and
the economy as a whole. This free-market capitalism and competitive banking found fertile
ground in the New World, where the United States of America was getting ready to emerge.
In the beginning, Smith's ideas did not benefit the American banking industry. The average
life for an American bank was five years, after which most banknotes from the defaulted
banks became worthless. These state-chartered banks could, after all, only issue bank notes
against gold and silver coins they had in reserve.
A bank robbery meant a lot more then than it does now, in our age of deposit insurance and
the Federal Deposit Insurance Corporation (FDIC). Compounding these risks was the cyclical
cash crunch in America.
Alexander Hamilton, a former Secretary of the Treasury, established a national bank that
would accept member banknotes at par, thus floating banks through difficult times. This
national bank, after a few stops, starts, cancellations and resurrections, created a
uniform national currency and set up a system by which national banks backed their notes
by purchasing Treasury securities, thus creating a liquid market. Through the imposition of
taxes on the relatively lawless state banks, the national banks pushed out the competition.
The damage had been done already, however, as average Americans had already grown to
distrust banks and bankers in general. This feeling would lead the state of Texas to actually
outlaw bankers—a law that stood until 1904.
2.2.3 Merchant Banks:
Most of the economic duties that would have been handled by the national banking system, in
addition to regular banking business like loans and corporate finance, fell into the hands of
large merchant banks, because the national banking system was so sporadic. During this
period of unrest that lasted until the 1920s, these merchant banks parlayed their international
connections into both political and financial power.
These banks included Goldman and Sachs, Kuhn, Loeb, and J.P. Morgan and Company.
Originally, they relied heavily on commissions from foreign bond sales from Europe, with a
small back-flow of American bonds trading in Europe. This allowed them to build up their
capital.
At that time, a bank was under no legal obligation to disclose its capital reserve amount, an
indication of its ability to survive large, above-average loan losses. This mysterious practice
meant that a bank's reputation and history mattered more than anything. While upstart banks
came and went, these family-held merchant banks had long histories of successful
transactions. As large industry emerged and created the need for corporate finance, the
Page 7 of 60
amounts of capital required could not be provided by anyone bank, and so initial public
offerings (IPOs) and bond offerings to the public became the only way to raise the needed
capital.
The public in the U.S. and foreign investors in Europe knew very little about investing, due to
the fact that disclosure was not legally enforced. For this reason, these issues were largely
ignored, according to the public's perception of the underwriting banks. Consequently,
successful offerings increased a bank's reputation and put it in a position to ask for more to
underwrite an offer. By the late 1800s, many banks demanded a position on the boards of the
companies seeking capital, and if the management proved lacking, they ran the companies
themselves.
2.2.4 Morgan and Monopoly:
J.P. Morgan and Company emerged at the head of the merchant banks during the late 1800s.
It was connected directly to London, then the financial center of the world, and had
considerable political clout in the United States. Morgan and Co. created U.S. Steel, AT&T,
and International Harvester, as well as duopolies and near-monopolies in the railroad and
shipping industries, through the revolutionary use of trusts and a disdain for the Sherman
Anti-Trust Act.
Although the dawn of the 1900s had well-established merchant banks, it was difficult for the
average American to get loans from them. These banks didn't advertise and they rarely
extended credit to the "common" people. Racism was also widespread and, even though the
Jewish and Anglo-American bankers had to work together on large issues, their customers
were split along clear class and race lines. These banks left consumer loans to the lesser
banks that were still failing at an alarming rate.
2.2.5 The Panic of 1907:
The collapse in shares of a copper trust set off a panic that had people rushing to pull their
money out of banks and investments, which caused shares to plummet. Without the Federal
Reserve Bank to take action to calm people down, the task fell to J.P. Morgan to stop the
panic, by using his considerable clout to gather all the major players on Wall Street to
maneuver the credit and capital they controlled, just as the Fed would do today.
2.2.6 The End of an Era:
Ironically, this show of supreme power in saving the U.S. economy ensured that no private
banker would ever again wield that power. The fact that it took J.P. Morgan, a banker who
was disliked by much of America for being one of the robber barons with Carnegie and
Rockefeller, to do the job, prompted the government to form the Federal Reserve Bank,
Page 8 of 60
commonly referred to today as the Fed, in 1913. Although the merchant banks influenced the
structure of the Fed, they were also pushed into the background by it.
Even with the establishment of the Federal Reserve, financial power and residual political
power was concentrated in Wall Street. When World War I broke out, America became a
global lender and replaced London as the center of the financial world by the end of the war.
Unfortunately, a Republican administration put some unconventional handcuffs on the
banking sector. The government insisted that all debtor nations must pay back their war
loans, which traditionally were forgiven, especially in the case of allies, before any American
institution would extend them further credit.
This slowed down world trade and caused many countries to become hostile toward
American goods. When the stock market crashed on Black Tuesday in 1929, the already
sluggish world economy was knocked out. The Federal Reserve couldn't contain the crash
and refused to stop the depression; the aftermath had immediate consequences for all banks.
A clear line was drawn between being a bank and being an investor. In 1933, banks were no
longer allowed to speculate with deposits and the FDIC regulations were enacted, to convince
the public it was safe to come back. No one was fooled and the depression continued.
2.2.7 World War II Saves the Day:
World War II may have saved the banking industry from complete destruction. WWII and the
industriousness it generated lifted the U.S. and world economies back out of the downward
spiral.
For the banks and the Federal Reserve, the war required financial maneuvers using billions of
dollars. This massive financing operation created companies with huge credit needs that, in
turn, spurred banks into mergers to meet the new needs. These huge banks spanned global
markets.
More importantly, domestic banking in the U.S. had finally settled to the point where, with
the advent of deposit insurance and mortgages, an individual would have reasonable access to
credit.
2.2.8 Benefits of Banking:
With the exception of the extremely wealthy, very few people buy their homes in all-cash
transactions. Most of us need a mortgage, or some form of credit, to make such a large
purchase. In fact, many people use credit in the form of credit cards to pay for everyday
items. The world as we know it would not run quite so smoothly without credit—or without
banks to issue credit.

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Banks have come a long way from the temples of the ancient world, but their basic business
practices have not changed. Banks issue credit or loans to people who need it, but they
demand interest on top of the repayment of the loan. Although history has altered the fine
points of the business model, a bank's purpose is to make loans and protect depositors'
money.
Even if the future takes banks completely off your street corner and onto the internet—or
have you shopping for loans across the globe—banks will still exist to perform this primary
function.
2.3 World History of Banking:
The history of banking began with the first prototype banks which were the merchants of the
world, who gave grain loans to farmers and traders who carried goods between cities. This
was around 2000 BC in Assyria, India and Sumeria. Later, in ancient Greece and during
the Roman Empire, lenders based in temples gave loans, while accepting deposits and
performing the change of money. Archaeology from this period in ancient
China and India also shows evidence of money lending.
Many histories position the crucial historical development of a banking system to medieval
and Renaissance Italy and particularly the affluent cities of Florence, Venice and Genoa.
The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing
branches in many other parts of Europe. The most famous Italian bank was the Medici bank,
established by Giovanni Medici in 1397. The oldest bank still in existence is Banca Monte
dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously
since 1472.
Development of banking spread from northern Italy throughout the Holy Roman Empire, and
in the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and
in London since the 18th century. During the 20th century, developments in
telecommunications and computing caused major changes to banks' operations and let banks
dramatically increase in size and geographic spread. The financial crisis of 2007–2008 caused
many bank failures, including some of the world's largest banks, and provoked much debate
about bank regulation.
2.3.1 Safe in the temple: 18th century BC:
Wealth compressed into the convenient form of gold brings one disadvantage. Unless well
hidden or protected, it is easily stolen.

Page 10 of 60
In early civilizations a temple is considered the safest refuge; it is a solid building, constantly
attended, with a sacred character which itself may deter thieves. In Egypt and Mesopotamia
gold is deposited in temples for safe-keeping. But it lies idle there, while others in the trading
community or in government have desperate need of it. In Babylon at the time of Hammurabi,
in the 18th century BC, there are records of loans made by the priests of the temple. The
concept of banking has arrived.
2.3.2 Greek and Roman financiers: from the 4th century BC:
Banking activities in Greece are more varied and sophisticated than in any previous society.
Private entrepreneurs, as well as temples and public bodies, now undertake financial
transactions. They take deposits, make loans, change money from one currency to another
and test coins for weight and purity.
They even engage in book transactions. Moneylenders can be found who will accept payment
in one Greek city and arrange for credit in another, avoiding the need for the customer to
transport or transfer large numbers of coins.
Rome, with its genius for administration, adopts and regularizes the banking practices of
Greece. By the 2nd century AD a debt can officially be discharged by paying the appropriate
sum into a bank, and public notaries are appointed to register such transactions.
The collapse of trade after the fall of the Roman empire makes bankers less necessary than
before, and their demise is hastened by the hostility of the Christian church to the charging of
interest. Usury comes to seem morally offensive. One anonymous medieval author declares
vividly that 'a usurer is a bawd to his own money bags, taking a fee that they may engender
together'.
2.4 Banking in Ancient and British Period:
Banking in India is traceable in ancient Vedic era. Ancient bankers performed the functions
such as accepting deposit, granting loan against security, acting as bailee to customers or as
treasurers and bankers to the state and managing the currency of the country also they used
loan deeds. During Buddhist period, Brahmins and Kshatriyas entered the banking business.
The concept of Hundis or indigenous bills of exchange came in use (Ahmad 1992.25).
During Mughal rule, indigenous banks granted loans for both domestic and foreign trade,
assisted the state, issued metallic coin, and acted as moneychanger, revenue influence and
power. They financed trade, performed treasury functions and were trusted custodians of
deposits (Ahmad 1992:27). However, the Jagath Seth did not provide banking services.

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The tradition and culture of the Bengalis reflect their conscious of money and assets. They
have been exposed to the principles of cash transaction, savings, investment, credit, interest,
and several kinds of mortgages since Indian classical civilization. By the third century BC,
Mauryan urban economy extended up to Mahasthan (Bogra), where its silver coins have been
found (Maloney and Ahmed, 1988:1).
In seventeenth century, the English traders and the East India Company utilized indigenous
bankers for borrowings and collection of land revenue. But the business and power of
indigenous bankers declined due to the emergence of the English Agency Houses (in Calcutta
and Bombay) which began banking business in addition to their commercial business. Other
causes of decline of the indigenous bankers can be attributed to the breakup of the Mughal
Empire and establishment of uniform currency throughout the country in 1835. Also changes
in trade routes and trade relations with other countries due to development of railways,
steamships, post and telegraph etc. badly affected the indigenous bankers. Indigenous bankers
lost their business in urban areas and the European bankers captured the urban banking. Then,
indigenous bankers existed in rural areas by concentrating on banking services to agricultural
and internal trade. The Agency Houses were bankers of the East India Company and the
European merchants in India. The Agency Houses financed the crops trade, issued paper
money and paved the way for the establishment of joint stock banks (Ahmad 1992:28).
Commercial banks in Bangladesh’s territory have been functioning for the last two centuries.
“The Bank of Hindustan” was the first modern bank formed in 1770 by an English Agency
House in Calcutta but was wound up in 1832 (Guru Datta 1987:5 in Abrol, (1987); Ahmad
1992:30). The Bengal Bank and the General Bank of India were established in about 1785
chartered by the East India Company (Ahmad 1932:30). In the first quarter of the nineteenth
century, the state aided bank facilitated government borrowing and helped the trading class.
In the year 1806 the first presidency bank, the Bank of Bengal, was established, followed by
the Bank of Bombay (1840) and the Bank of Madras (1843). The East India Company and
European private shareholders mostly owned these banks. The presidency banks had the
monopoly of government banking and the issue of notes. In 1876, the Presidency Banks Act
was passed and government had withdrawn its capital. The government’s balances were kept
in three reserve treasuries. The policy of the Presidency Banks Act was to safeguard the
interest of the government and also it imposed restriction on all three banks to carry out the
business of banking only (Ahmad 1992:30). In that period, the English agencies established
mostly the joint stock banks. After 1813, several joint stock banks were established by the
British settlers in India but most of them could not stay long as they failed to confine to
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banking business only (Ahmad 1992:31). Between 1861 and 1865 there was a mushroom
growth of banking companies. Under the Indian management, the Oudh Commercial Bank
was first formed in 1880 followed by the Punjab National Bank and the Alliance Bank of
Simla [Srinivasaraghavan, 1955:567). The three presidency banks and Indian joint stock
banks were established by the acts of Indian legislature. In 1860, the principal of limited
liability was first applied to the banks (Ahmad 1992:30).
The failure of Indian banks (upto 1935) was mostly because they indulged in other activities.
Such as large sums of money were locked up in speculative businesses, the banks had
provided long-term finance to businesses without efficient investigation into their
surroungings, for getting the chance of earning large profits and also short term deposits were
invested for this purpose. Many of the directors and managers of these banks were incapable
and dishonest. Loans to directors and concerns in which they were interested were
unrestricted (Ahmad 1992:32).
The political stimulus of the “Swadeshi Movement” in the early twentieth century inspired
the opening of important joint stock banks. (such as Bank of India, the Cenara Bank of
Baroda) Srinivasaraghavan, 1985:568; Ahmad 1992:31). In order to face the competition of
foreign banks, the three presidency banks were amalgamated and the Imperial Bank of India
was formed in 1920 (Ahmed 1992:31).The Imperial Bank of India Act was passed in 1920.
Before the establishment of RBI, commercial banks were regulated by different acts. The
establishment of RBI was the first organized initiative to bring banking and monetary system
of the sub-continent in a disciplined way.
After 1942, circumstantial forces changed the traditional pattern of banking policy in India.
The subcontinent experienced a tremendous inflow of money due to expenditure in war and
post-war reconstruction (Ismail in Uzair 1967:42]. The British rulers pursued a policy
package that had two characteristics:
(i) The exploitative relation between the United Kingdom and India and
(ii) The dominance of the British over the Indians.
The maintenance of imperial systems received the highest priority. The philosophy and socio-
economic intent of the British rules concentrated mostly on administration for laws and
regulations for protecting the imperial interest. The government monopoly was retained in the
sphere of post, telegraph and telecommunication. The banking and insurance etc. were
encouraged for private enterprises (Ahmad 1987:68). The foreign exchange banks, which
were fifteen in number, were not under the control of the Indian government.

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2.5 The Banking History of Bangladesh:
Bangladesh is a developing country. Banking sector plays a pivotal role in the economic
development of the country. Banking system of a country can well be said as a barometer of
its economic prosperity. Well-developed banking system is indispensable for modern trade
and commerce. Now-a-days, banks not only act as custodian of public money but also are
indispensable as vital agent for maintenance of sound financial position of a country.
Nationalized Commercial Banks (NCBs) were established in Bangladesh in 1972 through
amalgamation of twelve commercial banks that were operating in pre-independent
Bangladesh allowing the poor access to fund, reducing capital flight to foreign countries, and
increasing domestic investment were some of the basic objective of this nationalization. That
means a society with wealth distributed as equitably as possible. But with time difference
those banks has changed their policies and strategies, which were not fulfilling the class
banking policies of the government. On an evaluation of the activities of commercial banks, it
has been observed that the progresses made by the banking industry since nationalization was
not impressive. The nationalized banks could not play the due role in the implementation of
government programs and policies. Hence, a trend of de-nationalization of banks started from
mid 80’s.
In the meantime, the policy of the government towards banking industry regarding economic
management has changed since 1976. That year private sector had been entrusted to play a
bigger role in the economy than before. Accordingly, in order to provide more credit to local
investors the private sector banking had been introduced. Government decided to allow
setting up of local Private Commercial Banks (PCB) in addition to Nationalized Commercial
Banks (NCB) operating in the country.
After the liberation war, and the eventual independence of Bangladesh, the Government of
Bangladesh reorganized the Dhaka branch of the State as the central bank of the country, and
named it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank
Order, 1972, and the Bangladesh Bank came into existence with retrospective effect from 16
December 1971.
The 1971 Mujib regime ran a pro-socialist agenda – in 1972, the government decided to
nationalize all banks in order to channel funds to the public sector and to prioritize credit to
those sectors that sought to reconstruct the war-torn country – mainly industries and
agricultural sectors. However, government control at the wrong sectors prevented these banks
from functioning well. This was compounded by the fact that loans were handed out to the

Page 14 of 60
public sector without commercial considerations, that banks had poor capital lease, provided
poor customer services and didn’t have any market-based monetary instruments. But mostly,
because loans were given out without commercial sense, and because they took a long time to
call a loan non-performing, and once they did so, recovery under the erstwhile judicial system
was so abjectly expensive and their loan recovery was abysmally poor. While the government
made a point of intervening everywhere, it didn’t set up a proper regulatory system that
would diagnose such problems and correct them. Hence, banking concepts like profitability
and liquidity was alien to bank managers, and capital adequacy took backseat.
In 1982, the first reform program was initiated, where the government denationalized two of
the six nationalized commercial banks and permitted local private banks to create competition
in the banking sector. In 1986, a National Commission on Money, Banking and Credit was
appointed to recover the problems of the banking sector and a number of steps were taken for
the recovery targets for the nationalized commercial banks and development financial
institutions and prohibiting defaulters from getting new loans, yet, the efficiency of the
banking sectors could not be improved.
The Financial Sector Adjustment Credit (FSAC) and Financial Sector Reform Programmed
(FSRP) were formed in 1990, upon contracts with the World Bank with the objective to
remove government distortions and lessen the financial repression. The policies made use of
the McKinnon-Shaw hypothesis which stated that removing distortions will augment
efficiency in the credit market and increase competition. The policies therefore involved
banks to provide loans on commercial basis, enhance banks’ efficiency and to limit
government control to the monetary policy only. FSRP forced banks to have a minimum
capital adequacy, to systematically classify loans and to implement modern accounting
systems and computerized systems. It forced the central bank to free up interest rates, revise
financial laws, and to increase supervision in the credit market. The government also
developed the capital market, which too was performing poorly.
However, FSRP was expired in 1996 and afterward the Government of Bangladesh formed a
Bank Reform Committee (BRC) whose recommendations were largely remained unaddressed
by the then government.
2.6 Banking in Bangladesh:
Since early British rule, the history of banking in Bangladesh territory shows that the
traditional trade-networks developed before the banks invaded rural areas. And the banking
services have slowly flourished in Bangladesh territory. Even today, in many places,

Page 15 of 60
moneylenders provide credit services. Small shopkeepers and businessmen use informal
credit at high interest rate (Maloney and Ahmed, 1988: 54). Traditional mahajans’ money
lending business gradually declined due to expansion of bank and the micro credit programs
of NGOs, cooperative banks and government agencies.
2.6.1 Public Sector Banks:
During the liberation was in 1971, the economic, political, and social system including the
banking system were severally damaged at that time, all hi a and medium financial
institutions except two small banks had their head office in the West Pakistan. The non-
Bengali owners and managers of the financial establishments that operated in T7ast Pakistan
had abandoned them. After independence’ in 1 971, the now government had to take over
management and ownership of all such institutions, The Baths Nationalization Order 1972
was issued to nationalize banks and financial institutions (except those incorporated abroad)
in order to control chaos in the field of ownership, party. Bureaucracy, the intelligentsia, and
pressure group. By several orders six nationalized commercial banks (NCBs), one industrial
bank (BSB), one agricultural bank (BKB), and one industrial development financial
institution (BSRS) were created, the banks and financial institutions, which originated during
the Pakistan period and were merged. And renamed and continued their functioning after
independence of l3angladesh has teen presented in Table-3. The banks were consolidated and
nationalized. The nationalized banks and foreign banks constituted the total banking system
of Bangladesh. Investment Corporation of Bangladesh was established in 1976. Grameen
Bank, a specialized bank for the poor but not under control f the Central Bank, was
established in 1983. In the’) year 1983, the government allowed private sector to participate ii
the 1 business.
The Public Bank and the Uttara Bank were denationalized in January 1985. due to non-
profitability. This action reduced the two number of NCBs to four. The nationalized banks
continue t receive refinancing and other subsidies in order to fill credit demand and
government desires. Rupali Bank was converted into a public limited company on
14th December 1986. Rajshahi Krishi Unnayan Bank was established in 1987 through a
bifurcation of the offices of Bangladesh Krishi Bank of Rajshahi division. Bank of Small
Industries and Commerce Bangladesh Ltd. was established in 1993. This was made with the
intent of reversing the urban monopoly of banking and the flow of capital from rural to urban
areas. Such restructuring of public sector bank was in order to attain economic growth, and
policies were formulated for scheduled banks to play their role in industry, agriculture,
export, self-employment etc. As a result there has been advancement in the public sector
Page 16 of 60
banks in terms of increase in the number of branches, deposit mobilization, and advances to
the society (Table-4). There are nine public sector banks, of which four are nationalized
commercial banks and five are specialized banks.
2.6.2 Private Commercial Banks:
Taking advantage of the liberalization policy of the government regarding participaiton of
private sector in the banking business, a number of private sector banks were established in-
and-after 1983. With the emergence of private banks in Bangladesh, a competitive situation
in the sector has been created. There are twenty seven private banks in Bangladesh. They are:
The City Bank (1983), International finance Investment and Commerce Bank (1983), Arab
Bangladesh Bank (1986), Al-Baraka Bank Bangladesh (1995), South East Bank (1995)
Dhaka Bank (1996), Dutch Bangla Bank (1996), Al-Arafa Islami Bank (1996), Social
Investment Bank (1996), Mercantile Bank, Standard Bank, One Bank, EXIM Bank,
Bangladesh Commerce Bank, Mutual Trust Bank, Premier Bank, The First Security Bank,
Bank Asia, and The Trust Bank. The emergence of Private banks has added a new dimension
to the banking system in Bangladesh. The private commercial banks show a steady growth in
terms of number of branches, deposit, and advances (Table-5).
2.6.3 Foreign Banks:
The state Bank of India opened one branch during July-September 1975. In 1975, the four
foreign banks operating in Bangladesh were: (a) American Express International Banking
Corporation, (b) Grind lays Bank, (c) The Chartered Bank, and (d) State Bank of India. Now,
there are thirteen foreign banks – American Express Bank, ANZ Grindlays Bank, Standard
Chartered Bank, State Bank of India, Habib Bank, Citibank N.A., Credit Agrocole Indousez,
National Bank of Pakistan, Muslim Commercial Bank., The Bank of Nova Scotia, Hanil
Bank, and Hong Kong and Shanghai Banking Corporation, Faysal Islamic Bank of Bahrain
E.C. The foreign banks show a steady growth in terms of number of branches, deposit, and
advances.
2.6.4 Cooperative Banks:
Cooperative banks are indigenous banks in model and function. they are organized in three
tiers and their form of functioning is unit banking. The then British government promulgated
cooperative rules in 1904 and 1912 to shape the organization. In 1947 the then East Pakistan
had twenty-six thousand cooperatives, which collapsed after partition. The traditional
cooperatives in Bangal were mostly organized by savings and credit societies. In 1948, Union
Multipurpose Cooperative Societies (UMPCSs) were formed with government patronage but
were mostly dissolved due to malfunctioning. The cooperative financing (Maloney and
Page 17 of 60
Ahmed, 1988: 115-6). The Land Mortgage Banks have been operating in India since 1929.
They supplied long-term and medium term loans to their members on the mortgage of land
for agriculture purpose. They also performed banking functions of deposit mobilization,
supply of credit, and provision of remittance facilities.
2.7 Types of Bank in Bangladesh:
The banking system of Bangladesh is composed of 5 types of Bank. They are
 Central bank.
 State owned commercial Bank
 Private commercial Bank
 Foreign commercial bank
 Specialized development Banks.
2.7.1 Central Bank (Bangladesh Bank):
Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the
Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it
Bangladesh Bank with retrospective effect from 16 December 1971.
After the independence, banking industry in Bangladesh started its journey with 6
nationalized commercialized banks, 2 State owned specialized banks and 3 Foreign Banks. In
the 1980s banking industry achieved significant expansion with the entrance of private banks.
2.7.2 State – owned Commercial Banks:
There are four state-owned commercial Bank in Bangladesh which is fully or majorly owned
by the government of Bangladesh.
2.7.3 Private Commercial Banks:
Private Banks are the highest growth sector due to the dismal performances of government
banks. Now 38 private commercial Banks are operating in Bangladesh.
2.7.4 Foreign Commercial Bank:
10 foreign commercial banks are operating in Bangladesh. They have different products and
service culture to serve the customer.
2.7.5 Specialized Banks:
Specialized Banks (SDBs): specialized banks which were established for specific objectives
like agricultural or industrial development. These banks are also fully or majorly owned by
the Government of Bangladesh.

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2.8 Factors affecting change in Banking System:
After independence, Bangladesh Bank had taken measures such as credit expansion, branch
expansion, deposit mobilization, advances to priority sectors through the banks. (Chowdhury,
1973:1). Immediately after independence, to recover and reconstruct the war affected
economy, Bangladesh signed several trade agreements with different countries, donor
agencies, and international banks for inflow of capital in the form of aid, grant, loan, etc. The
Government and the Bangladesh Bank implemented several loan schemes for economic
development and the government continuously adopted deficit budget and followed foreign
aid financed development strategy. All these contributed to the growth of banks in
Bangladesh (Sobhan and Islam, 1988, 182; Hossain, 1988: 211; Hashemi, 1988: 213;
Bhattacharya, 1988:233: Ahmad, 1988:309). The main factors which shaped the nature of
development of the banking system in Bangladesh are (i) nationalization of banks in 1972,
(ii) inflow of capital under trade agreement to reconstruct the war affected economy, (iii)
Bangladesh Bank’s policy measures for the growth of disciplined banking system and
services to the deposit mobilization and loans to priority sectors, (iv) de-nationalization and
permission to open new private banks, (v) gradual growth in foreign trade, (vi) inflow of
capital from the World Bank, Asian Development Bank, Islamic Development Bank, and
other organizations and agencies and (vii) wage earners remittances.

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 Chapter: - 03
Overview of Dutch Bangla Bank Ltd

Page 20 of 60
3.1 Introduction:
Dutch-Bangla Bank is a second generation commercial private Bank. During the period of its
operation, this bank created a milestone of success in banking sector. This bank holds an
experienced team of banking professionals. They achieved this success because of their
experienced banking professional team, proper management & so on.
Dutch-Bangla Bank Limited is a Bangladesh–Netherlands joint venture scheduled
commercial bank established in Bangladesh with the primary objective to carry on all kinds
of banking business in and outside of Bangladesh.
Starting with one Branch in 1996, DBBL has expanded to one sixty four (164) branches
including nine Branches outside of the capital. To provide client services all over Bangladesh
it has established a wide correspondent banking relationship with a number of local banks. To
facilitate international trade transactions, it has arranged correspondent relationship with
large number of international banks which are active across the globe.
In addition to its banking activities, Dutch-Bangla Bank Limited takes part in different
national activities promoting sports, culture, social awareness, etc. Participation in these
activities as sponsors is part of its business development policy.
3.2 History of DBBL:
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was
an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and
the Dutch company FMO.
From the onset, the focus of the bank has been financing high-growth manufacturing
industries in Bangladesh. The rationale being that the manufacturing sector exports
Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows
Bangladesh to achieve the desired growth. Dutch Bangla Bank other focus is Corporate
Social Responsibility (CSR). Even though CSR is now a cliché, Dutch Bangla Bank is the
pioneer in this sector and termed the contribution simply as 'social responsibility'. Due to its
investment in this sector, Dutch Bangla Bank has become one of the largest donors and the
largest bank donor in Bangladesh. The bank has won numerous international awards because
of its unique approach as a socially conscious bank.
Dutch Bangla Bank was the first bank in Bangladesh to be fully automated. The Electronic-
Banking Division was established in 2002 to undertake rapid automation and bring modern
banking services into this field. Full automation was completed in 2003 and hereby
introduced plastic money to the Bangladeshi masses. Dutch Bangla Bank also operates the

Page 21 of 60
nation's largest ATM fleet and in the process drastically cut consumer costs and fees by 80%.
Moreover, Dutch Bangla Bank choosing the low profitability route for this sector has
surprised many critics. Dutch Bangla Bank had pursued the mass automation in Banking as a
CSR activity and never intended profitability from this sector. As a result it now provides
unrivaled banking technology offerings to all its customers. Because of this mindset, most
local banks have joined Dutch Bangla Bank banking infrastructure instead of pursuing their
own.
Even with a history of hefty technological investments and even larger donations, consumer
and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the
highest share price in the Dhaka Stock Exchange in 2008.
3.3Our Mission, Vision & Core Objective of DBBL:
3.3.1 Mission of DBBL:
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone".
3.3.2 Visionof DBBL:
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth
living. Dutch-Bangla Bank’s essence and ethos rest on a cosmos of creativity and the marvel-
magic of a charmed life that abounds with spirit of life and adventures that contributes
towards human development.
3.3.3 Objectivesof DBBL:
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs
and satisfaction and to become their first choice in banking. Taking cue from its pool
esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that
upholds and epitomizes its vaunted marquees "Your Trusted Partner"

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3.4Organizational (General) Hierarchy of DBBL:
Managing Director (MD)

Additional Managing Director (AMD)

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Assistant Officer (AO)

Trainee Officer (TO)

3.5 Departments of DBBL:

If the jobs are not organized considering their interrelationship and are not allocated in a
particular department it would be very difficult to control the system effectively. If the
departmentalization is not fitted for the particular works there would be haphazard situation
and the performance of a particular department would not be measured. Dutch-Bangla Bank
Limited has does this work very well. Departments are as follows:
 Human Resources Department
 Financial Administration Department
 Asset Operations Department

Page 23 of 60
  Credit Division
 SME Division
 Internal Control & Compliance Department
 Marketing & Product Development
 Impaired Asset Management
 Treasury Front
 Treasury Back
 General Infrastructure Service
 Information Technology Department
 Customer Service Delivery
 Cards Division
 Mobile Banking
 Cash Management
 Payment Service
 Loan Administration Department

3.6 Company Information:

Company Information of DBBL
REGISTERED OFFICE Sena Kalyan Bhaban
195,Motijheel Commercial Area
Dhaka-1000, Bangladesh
Tel:(88-02)7176390-3(PABX)
Fax:(88-02)9561889
E-mail: dbbl@bdmail.net
SWIFT:DBBL BD DH
Web: www.dbbl.com.bd
STATUTORY AUDITORS Hoda Vasi Chowdhury & Co.
Chartered Accountants
BTMC Bhaban (8th Level)
7-9 Kawran Bazar
Dhaka -1215,Bangladesh
TAX & COMPANY AFFAIRS Ahmed Zaker & co.
CONSULTANT
Chartered Accountants
Hotel Al-Helal Building (3rd Floor)
186, Inner Circular Road
Dhaka-1000, Bangladesh
Tel:(88-02)7101040-41,7101101

Page 24 of 60
 E-mail: azc@fsbd.net

3.7 Focus of DBBL:

DBBL’s focus is to provide one counter service to our clients covering:

Commercial Banking (Deposit Accounts)

Consumer Banking (Retail Baking)-

 Traveler Cheques

 Foreign & Inland Remittances

Financial Services

Corporate Banking

Asset & liability management

Liquidity & capital Resources Management

Information technology

Human Resources
3.8 Services and Products:
Products and Services offered by DBBL:
Retail Banking
Remittance and collection
Import and export handling and financing
Corporate Banking
Project Finance
Investment Banking
Consumer credit
Agriculture Loan
Real time any branch banking
24 Hours Banking through ATM
 DBBL-NEXUS Debit card
 DBBL-Maestro/Cirrus Debit card
 DBBL Credit card
Internet Banking

Page 25 of 60
 SMS Banking
On line Banking through all Branches
3.9 Banking Products:
3.9.1 Various Deposits::
Savings Deposit Account
Current Deposit Account
Short Term Deposit Account
Resident Foreign Currency Deposit
Foreign Currency Deposit
Convertible Taka Account
Non-Convertible Taka Account
Exporter's FC Deposit(FBPAR)
Current Deposit Account-Bank
Short Term Deposit Account-Bank
3.9.2 Loan & Advances:
Lease Finance
Other Term Loan
FMO Local currency Loan for SME
FMO Foreign currency Loan
Cash Credit (Hypothecation)
Small Shop Financing Scheme
3.10ATM Services:
We can find DBBL ATMs beside our home, in our office premise, nearby market, university,

college & school premises, Airport, Railway stations etc., throughout the country.

Using any of the DBBL ATM pools anywhere in the country, you can perform the following:

Account balance enquiry

Cash withdrawal – 24 hours a day, 7 days a week, 365 days a year
Cash deposit to a certain number of ATMs any time
Mini statement printing
PIN (Personal Identification Number) change

Page 26 of 60
All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL-

Maestro/Cirrus Debit card and DBBL Credit card.

Products Name Customer Charge

ATM NEXUS Debit card All a/c Holders Yes
ATM Maestro Debit card All a/c Holders Yes

ATM Maestro Debit card All a/c Holders Yes

ATM DBBL Credit (OD) card Limited Yes

Internet All a/c Holders Yes

Banking
SMS All a/c Holders Yes
Banking

ATMs of DBBL
3.11 Account Service:
DBBL provides all the accounts services as prescribed by the guidelines of Central Bank
(Bangladesh Bank). We offer competitive interest rate and provide premium quality services
for the accounts. Account services are:
Foreign Currency Account
Non-Resident Foreign Currency Deposit Account (NFCD)
Resident Foreign Currency Deposit Account (RFCD)
Convertible and Non-Convertible Taka Account
3.12 DBBL Internet Banking:
DBBL Internet banking enables customer to access his/her personal or business accounts
anytime anywhere from home, office or when traveling. Internet Banking gives customer the
freedom to choose his/her own banking hours. It can save time, money and effort. It's fast,
easy, secure and best of all.
Using any of the DBBL ATM booths anywhere in the country, its customers can perform the
following:
Securities with DBBL Internet Banking
A/C Opening & Accessing Internet Banking
Internet Banking Features

Page 27 of 60
 Terms & Conditions of Internet Banking
3.13Awards:
DBBL was awarded with ICAB National Award for best published Accounts and reports for
the year 2008 in the Financial Sector-Banking category. DBBL was also awarded ICMAB
best Corporate Performance Award for the year 2008 in the category of Private Commercial
Bank.
DBBL was also awarded with best presented Accounts and Corporate Governance Disclosure
Award for the year 2008 Figure 1category of Financial Sector-Banking by South Asian
Federation of Accounts.

Page 28 of 60
 Chapter-04
General Banking Activities of DBBL

Page 29 of 60
4.1 General Banking Procedures of DBBL:
General Banking Department is considered as the direct customer service center. It is the
starting point of all banking operations. It opens new accounts, remits funds, honor cheques,
takes deposits, issues pay orders, etc.
All activities in a bank except foreign trade, credit, and cash done in front desk including
every tasks from account opening to account closing are General Banking. It includes account
opening, sending thanks letters to customers, cheque book requisition and giving, card
issuing, changing damaged cards for new ones, returning blocked cards in ATMs, checking
whether the card is active or not, issuing new PIN numbers for cards replacing lost ones,
mobile banking account opening, providing information, brochure and opening Deposit Plus
Scheme (DPS) and Fixed Deposit Receipt (FDR) accounts, fund transfer, preparing, signing,
delivering and keeping records of pay orders, setting up and changing (increasing/decreasing)
Transaction Profile (TP), account balance checking on request of account holder only, linking
customer mobile numbers with account numbers (SMS alert), changing customer profile
(signature, photo, mobile number and nominee information) if necessary, transfer cheque
receipt and signing, making phone calls to verify transfer cheques, providing statement of
transactions in an account, authorizing and issuing Balance Confirmation Certificates,
checking whether the account is active or not, receiving and sending remittances, Western
Union Money Transfer, keeping cash debit vouchers, sealing and maintaining cheque books,
keeping and supplying deposit slips of educational institutions, account closing, and
authorizing and posting all general banking tasks.
4.2 Function Of GB Department:
General Banking department generally deals with the following section:

1 Front Desk
2 Deposit
3 Account Opening
4 Accounts and ATM Section
G E N E R A LB A N K I N G 5 Transfer of Account
6 Remittance Section
7 Clearing Section
8 Closing Account
9 Cash Section
10 Others Activities of DBBL
Table-: General Banking of DBBL

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4.2.1. Front Desk:
My front desk supervisor was Md, Sajjadur Kabir Laskar (Executive Officer) is also there to
help me to understand my job. I found Front Desk a little difficult. My job was to attain and
help the clients directly. I had to help clients by providing information, helping to fill up
Account opening, DPS opening, DBDS opening, FDR opening, MBS opening, etc.
4.2.2. Deposit:
Bank is a financial intermediary, which mobilizes fund from surplus unit and allocates it to
deficit unit. Surplus unit means the people who have surplus money and willingness to save.
Deficit unit means the people who need money for industry, trade, business, or for personal
use but don’t have sufficient money of their own for such purposes. Bank mobilizes the fund
by accepting deposits from depositors and allocates the fund by providing loan to borrower.
Therefore, accepting deposits is one of the two classic functions of commercial banks. In
DBBL deposits deals with.

Deposit
Services

Local Currency Foreign Currency

Account Account

Current Savings Non-

Account Account Residential
residential

Fixed Short Term

Deposit deposit

Figure-: Deposit Services of DBBL

So deposits are one of the two classic functions of commercial banks. In DBBL account
opening section deal with
A. Current deposit (CD)
B. Savings deposit (SB)
C. Short term deposit (STD)
D. Fixed deposit (FDR)
E. Bearer certificate deposit.

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A. Current Deposit:
 CD accounts are unproductive in nature as banks loan able fund is concerned.
Sufficient fund has to be kept in liquid form, as current deposits are demand liability.
 Businessmen and companies are the main customers of this product.
 Thus huge portion of this fund become non-performing. For this reason banks do not
pay any interest to CD Account holders.
 There is no restriction on the number and the amount of withdrawals from a current
account.
 Service charge and incidental charges are recovered from the depositors since the
bank make payments and collect the bills, drafts, cheques, for any number of times
daily.
 The Banks through current accounts grant the loans and advances
 In practice of DBBL, a minimum balance of TK.5000 has to be maintained.
B. Savings Deposit
 As per Bangladesh Bank instruction 90% of SB deposits are treated as time liability
and 10% of it as demand liability
 Interest is paid on this account. DBBL offers a reasonable rate of interest (5%) for SB
A/Con day basis.
 Generally, banks require a 7-day prior notice if the total amount of one or more
Withdrawals on any date exceeds 25% of the balance of the account unless is given.
But in DBBL there is no restriction about drawing money from savings account.
Any time holders may draw money of any amount without prior notice.
 Generally householders, individuals and other small-scale savers are the clients of
this account
 Minimum Balance of Tk.500 is to be maintained. But initial deposit is Tk 2000.
Very limited service charge (Tk.200 per year) as it is an interest bearing account.
 Govt. charge 10% only on interest income of the customer.
C. Short Term Deposit (STD)
 Customers deposit money for a shorter period of time.
 STD account can be treated as semi-term deposit
 STD should be kept for at least thirty days to get interest.
 The interest offered for STD is less than that of savings deposit.

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  In practice, DBBL offers 5.00% rate of interest (half yearly compounding) for STD
account. It may increase depending on the fund.
 Volume of STD A/C is generally high. In DBBL, various big companies,
organizations, Government Departments keep money in STD accounts.
 Frequent withdrawal is discouraged and requires prior notice.
D. Fixed deposit:
Fixed deposit is one, which is repayable after the expiry of a predetermined period fixed by
him. The period varies from 3 months to 1 year. These deposits are not repayable on demand
but they are withdrawal subject to a period of notice. Hence, it is a popularly known as ‘Time
Deposit’ or ‘Time Liabilities”. Normally the money on a fixed deposit is not repayable before
the expiry of a fixed period.
The depositor has to fill an application form. In case of a deposit in joint name; DBBL also
takes the instructions
E. Bearer certificate Deposits
The fixed deposit account is repayable after the expiry of a predetermined period fixed by the
customer himself. The period varies from three months to three years. The customer may
open his /her account for different time periods, which may be for three months, six months,
one year, two years and three years. The interest rates of FDR accounts are as below:
Interest rate for Fixed Deposit:

Name of Deposit Interest Rate

a) 3 Months
(i)Below Tk. 1.00 Million 11.25%
(ii)Tk. 1.0 Million & above 11.75%
b) 6 Months
(i)Below Tk. 1.00 Million 11.50%
(ii)Tk. 1.00 Million & above 12.00%
c) 12 Months
(i)Below Tk. 1.00 Million 12.00%
(ii)Tk. 1.00 Million & above 12.50%
(iii) Tk. 3 Crore and Above 12.75%
STD Account 5.00%
STD Account (Bank) 4.50%
Savings Account 5.00%
Table: Interest rate for Fixed Deposit of DBBL

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General Characteristics:
 Popularly, it is known as Fixed Deposit Receipt (FDR). Term deposits are made with
the bank for a fixed period of time.
 The bank needs not to maintain cash reserves against these deposits and therefore, the
bank offers high rate of interest on such deposits.
 In DBBL, fixed deposit account is opened in customer choice time.
Premature Encashment of FDR:
A depositor has the right to claim for refund of his deposit before expiry of the fixed term
thereof. Bank may in special consideration allow premature encashment on application of the
depositors subject to the under noted conditions:
 For FDR which are 3 months maturity no interest will be payable at the premature
encashment, only the principle amount will be refunded.
 When premature encashment is allowed of FDR with tenure of over 3 months, interest
will be paid if encashment before expiry of 6 months at the rate of 3 months
prescribed interest rate.
 Premature encashment is allowed of FDR with tenure of over 6 months, interest will
be paid if encashment before expiry of 12 months at the rate of 6 months prescribed
interest rate and the same theory will also be applicable for premature FDR
encashment of 2 years and 3 years.
Lots of FDR:
If the instrument is lost from the possession of the holder, the holder is asked to fulfill the
following requirements:
 Party should inform it to the bank immediately;
 Furnish an Indemnity Bond;
 On fulfilling the above requirements a duplicate FDR is then issued to the customer
by the bank.
Renewal of FDR:
FDR is automatically renewed within seven days after the date of its maturity if the holder
does not come to en-cash the instrument. Renewal will be for the previously agreed maturity
period.

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4.3 Account Opening:
Receiving filled up application and signed by account holder in bank’s prescribed
Step 1
form mentioning what type of account is desired to be opened
The form is filled up by the applicant himself / herself.# Two copies of passport
size photographs from individual are taken, in case of firms photographs of all
partners are taken.(attested by the introducer)
Applicants must submit citizenship certificates: Photocopy of valid passport or
Step 2 ward commissioner certificate
Application must sign in A/c opening form and KYC (Know Your Customer)
form
Introducer’s signature and accounts number – verified by legal officer.
Nominee name, signature and photograph one copy.
Step 3 Authorized Officer accepts the application
Step 4 Minimum balance is deposited – only cash is accepted
Step 5 Account is opened and a pay-in-slip book is given
Account Opening Process
After fulfilling the above formalities, DBBL Bank provides the customer pay-in-slip book
that customer deposit their initial deposit.
4.3.1 Cheque Book Issuing:
There are two different procedure of issuing cheque book for savings account holders and
current account holders. For savings account holders officer need to send request online for
cheque book. It takes three working days to prepare their cheque books. After two working
days the clients have to collect their cheque book from front desk..
4.3.2Account related activities:
In general banking bankers maintain some other activities such as: Scanning photo and
signature of new account holder and linked with server. Proper preservation of respective
files, Change of account holder address (application from customer), Change of Board
resolution of several limited company accounts, issuing of thanks letter to A/C holders &
introducers etc.
4.3.3Account Balance inquiry:
Customers can inquiry about their account balance or any transaction within the banking
hour.

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4.3.4 Transfer of an A/C:
Account holder may transfer his account from one branch to another branch. For this he/she
must apply to the manager of the branch where he is maintaining account. Then manager
sends a request letter to the manager of the branch where the account holder wants to transfer
his account. With his request he sends original copy of account opening application and
specimen Signature Card and photocopy of application for transferring the account with the
balance remained account. But now-a-days customer need not transfer their account from one
branch to another branch. They can make transaction any DBBL branch with truly on-line
facility.
4.4 Accounts & ATM Section:
4.4.1 Accounting Treatment:
Credit voucher is made for this purpose:
Customer Account ..................................................Dr. XXX
15% Income Tax on interest in deposit ..................Cr XXX
Table: Credit voucher
4.4.2 Card Issuing and ATM Section:
To take card customer fills up Cardholder’s Request Form. This form is signed and kept for
further processing. Issuing of cards is posted into the system called ‘Instant Customer
Registration’ and all data regarding issued card is kept in ‘Webstar Cardman Card Issuance
Software’ as well as MS-Excel file. Before issuing card it is activated by ‘Webster Cardman
Card Issuance Software’. While issuing a new card Acceptance of Obtaining Card Form is
filled up by customer. In the register book card numbers are already remaining and customer
account number, name and signature is taken. New card will be activated in the next night.
Charge is Tk. 460.00 to issue new card.
4.4.3 ATM Card:
An account holder gets a NEXUS Debit card at free of cost after opening account. It takes
usually three weeks to prepare the card and sends him by mail.
4.4.4 PIN Mailer of ATM Card Delivery:
After opening account an inactive ATM card send to customer within two or three weeks.
Then account holder come to the branch with card and fill up the form for requesting
activation of ATM card. A secret PIN number delivered the account holder. Concern officer

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verify signature and photo of account holder. ATM Card will be activated within one week
and user can use it.

Issuance Fee (1st Annual Fee (2nd

ATM Card
year) year onwards)

DBBL Nexus
FREE 200
Classic

DBBL Nexus Silver 1000 1000

DBBL Nexus Gold 1500 2000

DBBL Nexus
MasterCard 500 500
Maestro

DBBL Nexus Visa

500 500
Electron

DBBL Nexus
MasterCard USD $15 USD $15
INTERNATIONAL

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4.5 Transfer of Account:
Account holder may transfer his account from one branch to another branch. For this he/she
must apply to the manager of the branch where he is maintaining account. Then manager of
Amberkhana sends a request letter to the manager of the branch where the account holder
wants to transfer his account. With his request he sends original copy of account opening
application and specimen Signature Card and photocopy of application for transferring the
account with the balance remained account. But now-a-days customer need not transfer their
account from one branch to another branch. They can make transaction any DBBL branch
with truly on-line facility.
4.6 Remittance Section:
At the beginning of the year 2005, our Bank has been exerting much emphasis on Inward
Remittance. By this time the Bank established extensive drawing arrangement network with
Banks and Exchange Companies located in the important countries of the world namely in
the United Arab Emirates, State of Kuwait, State of Qatar, State of Bahrain, Italy, Canada and
United States of America.
In the meantime, Dutch-Bangla Bank Limited gained the faith of the Bangladeshi Wage
Earners in sending their hard-earned money to their respective beneficiaries in Bangladesh in
shortest possible time. Expatriates Bangladeshi Wage Earners residing in those countries can
now easily remit their hard-earned money to Bangladesh with confidence, safety and speed.
4.6.1 Name of the Exchange Companies and Banks:

Sl No. Name of Exchange House Sending Countries

1 Al Ahalia Money Exchange Bureau, UAE UAE

2 Al Ansari Exchange LLC, UAE Global

3 Al Fardan Exchange LLC, UAE UAE

4 Al Jadeed Exchange LLC, Oman Oman

5 Alfalah Exchange Company, UAE UAE

6 Al-Muzaini Exchange Company K.S.C, Kuwait Kuwait

7 Al-Zaman Exchange WLL, Qatar Qatar

8 Aman Exchange Company WLL, Kuwait Kuwait

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9 Asia Express Exchange Co. LLC, Oman Oman

10 Aussie Forex & Finance Pty Ltd, Australia Australia

11 Bahrain Exchange Company WLL, Kuwait Kuwait

12 Bank Al Bilad, KSA Saudi Arabia

13 BFC Exchange Limited (EZRemit), UK Global

14 Choice Money Transfer dba Small World, USA Global

15 Dollarco Exchange Co., Kuwait Kuwait

16 East Bengal Exchange Co., Canada Canada

17 Eastern Exchange Company WLL, Qatar Qatar

18 Emirates India International Exchange LPC, UAE UAE

19 EXIM Exchange Company (Canada) Limited, Canada Canada

20 Global Money Remittance Pte Ltd, Singapore Singapore

21 Hello Paisa (Pty) Ltd, South Africa South Africa

22 IME (M) Sdn. Bhd., Malaysia Global

23 Index Exchange LLC, UAE UAE

24 Kuwait Asian Int'l Exchange Co. WLL, Kuwait Kuwait

25 Lari Exchange Co., Qatar Qatar

26 LuLu International Exchange LLC, UAE UAE

27 Merchantrade Asia Sdn. Bhd., Malaysia Global

28 MoneyGram Payment Systems, Inc, USA Global

29 National Exchange Company S.R.L., Italy Italy

30 NBL Money Transfer Pte Ltd, Singapore Singapore

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31 NBL Money Transfer Sdn. Bhd., Malaysia Malaysia

32 NEC Money Transfer Entidad De Pago S.A, Spain Global

33 Oman International Exchange, Oman Oman

34 Orient Exchange Company LLC, UAE UAE

35 Placid Express, USA Global

36 Prabhu Money Transfer, USA Global

37 RIA Financial Services, USA Global

38 Standard Express, USA USA

39 Trans-Fast Remittance LLC, USA Global

40 U.S. Money Express Co., USA USA

41 UAE Exchange Centre LLC, UAE & Xpress Money Global

42 Unidos Co. Ltd-Kyodai Remittance, Japan Japan

43 Valyou Sdn. Bhd., Malaysia Malaysia

44 Wall Street Exchange Centre LLC , UAE & Instant Cash FZE Global

45 Wall Street Finance LLC, USA USA & Canada

46 Western Union Money Transfer, USA Global

47 Zenj Exchange Co. , Bahrain Bahrain

4.7 Clearing Section:

Customers do pay and receives bill from their counter party as a result of transaction. DBBL
collects the bills on behalf of their customers. Collection mechanisms in DBBL are clearing,
Outward Bill for Collection (OBC), Inward Bills for Collection.

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4.7.1 Clearing:
When the bill is within the range of the clearinghouse it is sent for collection through clearing
section. As far as safety is concerned customers get crossed cheque for the transaction
Crossed check can’t be encashment from the counter; rather it has to be collected through
banking channel i.e., clearing. If a client of DBBL received a check of another bank that is
located within the clearing range and deposit the instrument in his account at DBBL, then
DBBL will collect the money through clearing house. After received the check DBBL will
credit client account. However, the amount is credited in the customer a/c but he will not get
the money until the check is honored.
4.7.2 Collection:
a. “Received” seal is stamped on the cheque
b. Crossing of the cheques are done
c. Proper endorsement is given
d. “Clearing” seal with date is given
e. Cheques are sorted bank wise and entries are given to the software-
NIKASH2 (Provided by Bangladesh Bank)
4.7.3 Function in the Clearing House:
a. The clearinghouse is an assembly of the locally operating scheduled banks for
exchange of checks, drafts, and other demand instruments drawn on each other and
received from their respective customers for collection.
b. The house meets at the appointed hour on all working days under the chairmanship of
the central bank. The clearinghouse sits twice in a working day.
c. The members submit the claimable checks in the respective desks of the banks and
vice-versa.
d. Consequently, the debit and credit entries are given.
e. At the end, the debit summation and the credit summation are calculated. Then the
banks clear the balances through the check of Bangladesh Bank.
f. The dishonored checks are sorted and returned with return memo.
g. If the instruments are dishonored then they are sorted again and sent back to the
returning house along with their return memo.
h. Later on all the instruments of DBBL which were claimed by other banks are sorted
and delivered to respective branches.

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4.8 Closing of Account:
 If the customer is desirous to close the account
 If DBBL finds that the account is inoperative for a long duration.
 If Garnishee Order is issued by the court on DBBL.
To close the account, the cheque book is to be returned to the bank. DBBL takes all the
charges by debiting the account and the remaining balance is then paid to the customer.
Necessary entries are given to the account closing register and computer.
4.8.1 Closing of an Account:
For two reasons, one can be closed. One is by banker and other is by the customer.
A. By banker: If any customer doesn’t maintain any transaction within six years and the
A/C balance becomes lower than the minimum balance, banker has the right to close an
A/C.
B. By customer: If the customer wants to close his A/C, he writes an application to the
manager urging him to close his A/C.
Different procedures are followed in cash of different types of A/C to close. Fixed deposit
A/C is closed after the termination of the period. BCD A/C is closed when the certificate is
surrendered.
4.8.2 Closing process for current &savings Account:
After receiving customer’s application the officer verifies the balance of the A/C. He then
calculates interest and other charges accumulated on the A/C. If it bears a credit balance, the
officer writes advice voucher. He gives necessary accounting entries post to accounts section.
The balance is returned to the customer. And lastly the A/C is closed. But in practice,
normally the customers don’t close A/C willingly. At times, customers don’t maintain any
transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it
is closed by the bank.
4.9 Functions of Cash Department:

# Cash payment is made only against cheque

Cash # This is the unique function of the banking system which is known
Payment as “payment on demand”

# It makes payment only against its printed valid Cheque

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 # It receives deposits from the depositors in form of cash
Cash
# So it is the “mobilization unit” of the banking system
Receipt
# It collects money only its receipts forms

Table: Functions of Cash Department

4.9.1 Cash payment or Cheque cancellation process:
Step 1 Receiving Cheque by the employee in the cash counter
Verification of the followings by the cash Officer in online.
Date of the Cheque (it is presented within 6 month from issue date)
Issued from this branch
Step 2
Amounts in figure and sentence written does not differ
Signature of the drawer does not differ
v. Cheque is not torn or mutilated
Gives pay cash seal and sends to the payment counter (verified by an
Step 3
officer)
Step 4 Payment officer makes payment
Table: Cheque cancellation process
4.9.2 Cheque and Crossing:
A “Cheque” is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand. [According into section-6, negotiable instrument Act, and
1881.]
A cheque may be classified into:
 An open cheque, which can be presented for payment by the holder at the counter of
the drawer’s bank.
 A crossed cheque, which can be paid only through a collecting banker.
4.9.3 Crossing cheque:
A cheque is said to be crossed when two transverse parallel lines with or without any words
are drawn across the face. Crossing may be general, special or restrictive.

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 Chapter: - 05
Description of each task completed during
Internship

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5.1 My Job as an Intern:
This report has been done as per the requirement for successful completion of the Internship
program. Exposure to the business world and acquiring practical work experience was the
primary objective of this report. I was attached with Dutch BanglaBank Ltd at its Sylhet
Branch for my internship. Through internship I got the basic idea about the corporate culture
and practices. It was a great experience. 2th September 2019 to 02ndDecember 2019 these
three month journey of my internship with Dutch BanglaBank Ltd was very delightful. I
enjoyed a lot. All the stuffs of the bank are very friendly and helpful. I was very lucky to get
chance to experience in different departments within these three months. Those are described
below:
5.1.1 Accounts Department:
My first worked was Accounts Department is under General banking. I worked in accounts.
Within that period of time my in charge were changed two times because of their transfer. So
I get the chance to work with two in charge. In accounts first I got Mizanur Rahman (Senior
Officer), she was also my onsite supervisor. Mr. Sushil Kumar Dash, (Assistant Vice
President & Deputy Manager) was my in charge. My main job in accounts is sorting the
voucher. After voucher sorting me had to attach them with related supplementary. Voucher is
actually proved of the transaction. There are various types of voucher and they are
categorized by different number. Which I had to separate and sort group wise. Supplementary
is the automated list of all transactions. Each of the transaction has related voucher. My job
was to attach them according the number and check the amount of transaction. In voucher
and supplementary the amount will be same. Otherwise there must be some problem which
will be identified and revised. After attaching next job was balancing. Balancing means doing
sum and ensuring that debit and credit is equal. Next step is to make a cover page which is a
brown color hard paper. Then prepare it for binding in an organized format. It is prepared for
binding and I did another job was entry the amount date wise in a register. I had to help
clients by providing information.
5.1.2 Clearing:
The 2nd department I worked was clearing. I was also appointed in clearing department. My
in charge was Tufael Ahmed (Senior Executive Officer), in clearing department cheque from
other banks transaction happens. My job was to entry those transactions in a register and at
the end of the day sum up the amount and check with the automated amount from computer.
The amount must be same.

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5.1.3 Cash Department:
I was in cash department. My in charge was Muhammad Saiful Islam Faruk(Executive
Officer). There were also some other stuff working in cash is Muhammad Saiful Islam
Faruk (Executive Officer), and Tufael Ahmed (Senior Executive Officer). My duty in cash
was to entry cheque and deposits slips amount and number in registers and give the serial
number to the cheque and deposit slip according the register entry number. There were two
register one is to entry the cheque number and amount. Another register is for entering
deposit slips number. Cheques are entered in debit register because with cheque bank gives
money to customer which is debit and deposit slips are entered in credit register because with
using deposit slip customer deposit money to bank which is earning for bank and that is why
it is credited. At the end of the day I had to sum up register individually and check them with
automated amount get through the computer. The amount must be some other wise it will be
revised thoroughly and correct the mistake. Another job I did there is sorting the cheque
according the prefix of the account number. I had to also sort out the Demand Payable Slip
(DPS) according their type. There are three types of DPS; 3yrs, 5yrs and 8 yrs. 1 to 10 of
every month are considered as DPS hour. Everyone becomes so busy. I got two days of DPS
hour and understand what actually happens. Those days I had to enter lots of cheques,
Deposit slips and sort a huge amount of DPS.I also entry the IPO Share items. I work this in
PC.
5.1.4 Foreign Remittance:
The 5th department I worked was Foreign Remittance.I was also appointed in Remittance
department. My in charge was Mr. Sushil Kumar Dash, (Assistant Vice President & Deputy
Manager), and Md, Sajjadur Kabir Laskar (Executive Officer) in Remittance department
Foreign Remittance from other Exchange Service transaction happens. My job was to entry
those transactions in a register and at the end of the day sum up the Pin Number and check
with the automated amount from computer. The amount must be various.

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 Chapter: - 06
Application of Knowledge Gained During
BBA Program to Accomplish Each Task

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6.1. Knowledge gained during BBA Program to Accomplish Each Task:
Iam a student of Bachelor of Business Administration (BBA). This program contains 12
terms including internship. 1st to 11th terms deal with educational activities and 12th in
internship.
As a business student, I learned many things from my BBA program; ga ined a variety
of knowledge though the class lecture, text books assignment , presentation , viva , exam etc.
while conducting my internship following are some courses that have been highly helpful
throughout my internship report .While conducting my internship program and making this
report, the courses are started below:
6.1.1 Principles of Accounting:
During my internship program I was able to make various debit voucher and credit voucher
by applying the basic concepts learned from Principles of Accounting course which I studied
at 2nd semester. It was also possible for me to make the Financial Statement of Passport Fees
for the year of 2016-2018 of the particular branch by applying its theoretical concept.
6.1.2 Banking & Insurance and Banking Law & Practice:
We have studied both courses at 7th semester and 10th semester respectively. It is a very
informative course for BBA students and its practical use is much more to do an internship
program especially in a bank organization. Firstly these courses give us a clear idea about
bank, banking, banker, customer, clients. By studying this course we have known about
different types of account; like-current account, savings account, fixed account, different
types of cheques; like- bearer cheque, crossed cheque, Bank cheque, antedated cheque etc,
parties of cheque, inland remittance and foreign remittance, reason of dishonoring a cheque.
We have got a detailed idea about L.C. from these courses.
6.1.3 Principles of Management:
We studied this course at 2nd semester of our BBA Program. It helped me learn how to
manage works in most efficient and effective manner and maintain the chain of command
within the organization. While doing internship program, I was able to complete my all tasks
efficiently and effectively at the shortest possible time and maintain the chain of command.
6.1.4 Business Communication:
Business Communication is a course which we studied at the 4th semester. During my
internship this course helped to be a good communicator by different types of communication
skills; like: writing, speaking, listening and interpersonal. Following are the cases in where I
needed these skills during Internship program:-

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  To communicate with the branch employees,
 To collect information from the customers and clients and
 To write formal letter and application
6.1.5 Organizational Behavior:
Organizational Behavior is concerned with the behavioral issues and I read it at 7th semester
of 4 (Four) years BBA Program. It is a course which comprises of all actions, norms,
behavior which an individual needs to follow within organization. This course made me
aware about conduct in the corporate field. During internship I needed the following things
learned from this course:-
 Marinating office time properly
 Maintaining formal dress
 How to manage the customers in a diplomatic manner
 How to work in a team as well as an individual etc.
6.1.6 Management Information & Control System:
Management Information and control enabled me to research this specific topic, analyze the
problem, think creatively, suggest a solution, and prepare a clear written presentation of the
solution and working individually to make the project. Studying this course at 8th semester I
also got a clear idea about 3 dimensions of information system that is quite needed to know
for working excellently in the bank organization for an employee.
6.1.7 Human Resource Management:
HRM is a course which tells us about the process of managing human resource and this
course was studied at 8th semester. Though this course seems only necessary for higher level
employees like manager to maintain good performance by hiring the right people in right
place and motivating them to achieve organizational goal, it is also necessary for all
employees in case of maintaining ethics and integrity in the workplace.
6.1.8 Business Research Method:
Business Research Method is a course which is a field of practical study and we studied it at
9th semester. Studying this course I was able to obtain data and analyse them to make a
critical evaluation and to make the report a complete one. Following are the things learned
from this course by which I have benefited to prepare the report:-
 Different research methods,
 What are the relevant and legal source of data,
 How to collect data and information,

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 How to filter the data and information,
 How to use facts and information for study,
 How to place right information in right place,
 To know and explain the purpose of the study and
 To identify the problems.

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 Chapter: - 07
AIS Practices in DBBL

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7.1. Activities Related to Accounting Information Systems (AIS):
An information system is a formal process for collecting data, processing the data into
information, and distributing that information to users.
The AIS is composed of three major subsystems
 The transaction processing system (TPS), which supports daily business operations
with numerous reports, documents, and messages for users throughout the
organization;
 The general ledger/financial reporting system (GL/FRS), which produces the
traditional financial statements, such as the income statement, balance sheet,
statement of cash flows, tax returns, and other reports required by law; and
 The management reporting system (MRS), which provides internal management with
special-purpose financial reports and information needed for decision making such as
budgets, variance reports, and responsibility reports.
7.1.1 Function of AIS:
Accounting information systems have three basic functions:
 The first function of an AIS is the efficient and effective collection and storage of data
concerning an organization’s financial activities, including getting the transaction data
from source documents, recording the transactions in journals, and posting data from
journals to ledgers.
 The second function of AIS is to supply information useful for making decisions,
including producing managerial reports and financial statements.
 The third function of AIS is to make sure controls are in place to accurately record
and process data.

7.1.2 AIS Practice of DBBL:

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Oracle FLEXCUBE
Oracle FLEXCUBE is a set of scalable, robust and functionally rich banking applications
built out of reusable software components and deployed on industry standard, Internet-
enabled server technologies. It supports a sophisticated multi-currency, multiple branch
environment 24 hours a day, 7 days a week. All components have been specifically designed
to cater for the processing of very large volumes of transactions on-line in real time. It
provides an effective platform for interactions between customers, business partners and bank
employees.
7.1.3 The Benefits of AIS in DBBL:
Due to the characteristic of banking business, DBBL accounting information system (AIS)
have specific important features related to their liquidity management and the management of
their customers’ account information. According to him, a bank has to manage its liquidity
efficiently in order to maximize profit and to fulfill regulation (minimum reserve
requirement).To perform such duties, the treasury manager need information of consolidated
balance of customers’ deposits, loan and other placements of bank funds. That information
are needed on a daily basis so that the treasury manager can determine how mush reserve is
needed and how much money should be placed in or borrowed from the money market to
conform to the regulation and to maximize the usefulness of available funds. The use of
computer network has made it possible for the treasury manager to get the information
needed almost at any time. Therefore the bank’s liquidity management could be performed
more timely and efficiently based on accurate information

Accounting information technologies an integral part of any business. It should provide users
with timely information to aid in preparing financial statement, taxes, reconciling bank
account and generating report, using computer hardware and software. The following are the
benefits of accounting information System in DBBL:

Timely Information: The accounting information technologies provide business and other
users with timely information. This information helps users and business with strategic
planning, budgets and other valuable information for payroll, bank reconciliation and creation
of spreadsheet.

Easy to Use: Raw data are entered directly into the accounting information technology; the
system processes any calculation, manipulations, reports and reconciliation. The output
shows the result as information in a meaningful manner.

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Internal Control: The accounting information technology makes it easier for banks to
establish internal control which help to detect fraud, theft and other mismanagement.

Decision Making: Data recorded and processed enables accounting information technology
to yield reports that aid interested parties in their decision making process. Most accounting
information technology can yield statistics that indicate performance of product or service.

External Financial Reporting: One of the most important characteristics of accounting

information technology is its ability to produce information that helps organizations generate
financial statement. From the accounting information technology, one should be able to
create companies balance sheet, income statement, shareholder or owners’ equity and
statement of cash flows.

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 Chapter: - 08
Findings, recommendations
&
Conclusion

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8.1 Findings
During my internship period at Sylhet Branch of Dutch Bangle Bank Ltd, I found strengths
and problems which are associated with both the bank and credit department. Some of them
are mentioned below:
 Most update products provide only some limited traditional services.
 They follow the modern banking system in general banking department. The entire
general banking procedure is not fully computerized.
 DBBL Bank has an interactive corporate culture. The working environment is very
friendly, interactive and informal. And there are no hidden barriers or boundaries
while communication between the superior and the subordinate. This corporate
culture provides as a great motivation factor to the employees.
 DBBL Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth in the profits and
deposits sector.
 From the clients view introducer is one of the problems to open an account. It is
general problem to all commercial bank.
 They face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
 Interest on deposit is lower.
 Interest on Fixed deposit is also lower than other Bank.
 Though the performance of general customer service is good, but all of their
employees are not well trained. The department needs to recruit expert human
resources to provide good customer service, which will bring effectiveness of the
bank’s operation.

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8.2 Recommendations
I have the practical experience in DBBL for only three months, with my experience in the
bank with vast and complex banking system, it is very difficult for me to recommend. I have
observed some shortcomings regarding operational activities of the bank. On the basis of my
observation I would like to recommend the following suggestions:
 DBBL should take attempt to increase its deposits on other account such as current
and savings accounts.
 The employees are given deposit target, which creates extra pressure to them for that
reason they cannot freely provide customer service. They had to spend most of their
time to marketing to fill up their target. If the bank can reduce the pressure then they
could be able to provide good service.
 DBBL needs more of some branches in remote area so that all types of people get
service.
 For speed of Radio Link and Internet there is necessary for high technology.
 The responsibility of the society of DBBL is very good. My recommendation is that if
DBBL takes an initiative to set up complete modern Hospital or school or NGOs
which will work for the welfare of the poor then it will be a good job.
 For the success of any organization, employee satisfaction is one of the most
important factors and DBBL authority has to look about it.

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8.3 Conclusion:
The world has now become a village for the blessing of technology. However, Bangladesh is
not developed for the technology adoption; especially E-banking services are very negligible
in our country. In addition, the government could not make the sufficient facilities for the
technology development of the country. In our country, most of the banks still maintain their
transactions manually. Moreover, Bangladesh is now giving emphasis on implementing
modern technology to get its respective benefits. At present, DBBL uses high information
technology system to operate its on-line banking services. After evaluating the overall
electronic banking activities of the DBBL, we find that the electronic banking system of the
bank is yet in the preliminary stage. The bank has launched truly on-line Banking project
since December 30, 2004. Although the Bank has some problems (mentioned before) to
provide its on-line services to the country wide, the bank management has said that the bank
is trying more to satisfy the clients demand at a maximum level. As because, the bank is
implementing retail E-banking system rather than wholesale E–banking system in its
preliminary stage. In addition, the bank management is trying to expand its branches network
at a satisfactory level all over the country as soon as possible so that the on-line services may
provide to the nationwide. Therefore, at last we can say that DBBL is playing a vital role in
the retail banking services by providing its on-line systems where the most of the banks of the
country are providing services manually. As the modern age is very competitive, so the bank
should implement other on-line banking facilities (credit card, wholesale, E-banking
facilities) very soon.

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 Appendix-1
Books Reference:
Gulshan, S.S. & Kapoor, G.K. (1994) “Banking Law and Practice”, S Chand & Company,
New Delhi.
Lesikar, Raymond V. and Marie E. Flatley, (2005) “Basic Business Communication”, 10th
Edition, McGraw-Hill Irwin.
Kumar, R. (2010). “Research Methodology: A Step-By-Step Guide for Beginners,” USA:
Sage Publications.
Romney, B. Marshal(2015), “Accounting Information Systems,”9th Edition, Brigham Young
University, Pearson
Kotler, P. (1999), “Marketing Management” 9th Edition, Prentice Hall, New Delhi
Stanley, B. B., & Geoffrey, A..H. (2008-2009),“Foundation of Financial
Management”. International: McGraw-Hill.

Reports/Manuals
 General Banking Manuals of Dutch Bangla Bank Ltd
 Several Booklets From Dutch Bangla Bank Ltd
 Brochures of different program Dutch Bangla Bank Limited (DBBL)
 Academic Calendar of Dutch Bangla Bank Ltd
 Annual report of Dutch Bangla Bank Limited 2015
 Annual report of Dutch Bangla Bank Limited 2016
 Annual report of Dutch Bangla Bank Limited 2017
 Annual report of Dutch Bangla Bank Limited 2018
Websites
 www.dutchbanglabank.com/
 http://www.webpronews.com/topnews/2018/12/28/the-challenges-of-human-resource-
management
 http://recruitment.naukrihub.com/meaning-of-recruitment.html
 http://tutor2u.net/business/gcse/people_recruitment_methods.htm
 www.management-hub.com

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 Appendix-2
Acronyms & Abbreviations

AOF – Account Opening Form.

A/C - Account
ATM - Automated Teller Machine
BB – Bangladesh Bank
BBA – Bachelor of Business Administration
BASIC – Bangladesh Small Industries and Commerce
BDT – Bangladeshi Taka
CD – Current Deposit
CC - Cash Credit
CIB - Credit Information Bureau
CRR- Cash Reserve Requirement
CSE – Chittagong Stock Exchange
DBBL: Dutch Bangla Bank Ltd
DD – Demand Draft
DPS – Deposit Pension Scheme
DSE – Dhaka Stock Exchange
FDR – Fixed Deposit Receipt
HRD - Human Resource Division
IBC – Inward Bill Collection
KYC – Know Your Customer
L/C – letter of Credit
MICR – Magnetic Ink Character Reader
OBC – Outward Bill Collection
SME – Small and Medium Business Enterprise
SND – Short Notice Deposit
SWIFT – Society for World Wide Inter Bank Financial Telecommunication
TT – Telegraphic Transfer
TIN – Tax Identification Number
TP - Transaction Profile

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