CHAPTER-02

AN OVERVIEW OF JANATA BANK LTD.

Introduction:
Banks are the mainstay of the financial system of a country like Bangladesh. Because of close
relationship between economic and financial development, the banking system must be robust,
resilient and sound for efficient inter-mediation of financial recourses. For this required sound
and prudential financial regulations.
Although our banking sector is so strong and healthy, the role played by it in our economy is
remarkable. Banking sector of Bangladesh exhibited a resilience performance in spite of
comparative economic sluggishness. It has been playing a vital in the economy by providing
credit for performing economic activities and at the sometime conglomerate the surplus capital
from general public through different types of depository incentives
In the recent year, Government has taken initiatives to reform in financial sector, such as
maintaining discipline in banking sector, steps for prevention of money laundering, loan write-
off policy and effective measures to gain accountability and transparency in banking sector.
These timely steps have made the banking operations more transparent, acceptable and modern.
As a result, the image of banking sector has been elevated.

I worked as an intern in Janata Bank Ltd. It is a govt. commercial bank. Among four
government commercial banks, it provides services in both extensive (with more than 900
branches throughout the country) and intensive manner (with comparatively good financial
position and corporate governance). The bank has already created brand loyalty towards its
customers.

2.1: Background of Janata Bank

Janata Bank Limited is the 2nd largest state-owned commercial bank in Bangladesh.
Immediately after the liberation of Bangladesh in 1971, the erstwhile United Bank Limited and
Union Bank Limited were renamed as Janata Bank. The established of Janata Bank was
happened under the Bangladesh Bank order 1972. It was incorporated as a public Limited
Company on 21, May 2007 vide certificate of incorporation No-C66933 (4425) 07 in the early
era of privatization. The Bank has taken over the business of Janata Bank at a purchase
consideration of Tk. 2593.90 million as a going concern through a vendor agreement signed
between the Ministry of Finance of the Peoples’ Republic of Bangladesh and the Board of
Directors on behalf of Janata Bank Limited on 15th November 2007. At present, the number of
total employees of the bank stands at 15,485. The bank had to spend a considerable amount of
money on account of salaries, allowances and other incidental expenses for such a large number
of employees. Yet, in this year Janata Bank has strengthened its position further in the banking
sector. As a player of money market JBL is also playing its due role. So, earning profit is not its
sole consideration, rather contributing significantly to the national economy ultimately
increasing shareholders’ wealth are its prime objectives.

Table-2.1: Description of JBL

Name Janata Bank Ltd

Legal Status Public Ltd Company
Sloan Your Committed Partner in Progress
Registered Address Janata Bhaban, 110, Motijheel Commercial Area Dhaka – 1000.
Position 2nd (Deposit/Asset)
Corporatization 15 November, 2007
Date of Commencement 31 May 2007
of Business

Chairman Luna Shamsuddoha

CEO & MD Md. Abdus Salam Azad (F.F.)

Chief Risk Officer Mr. Omar Farooque (DMD)

Head of Internal Control Mrs. Mahtab Zabin (GM)

and Compliance

Chief Financial Officer Mr. Md. Nuru lAlam FCA, FCMA (GM)
(CFO)

Tax Identification No 001-200-2732

Vat Registration No 9011050160

Branches (Countrywide) 906
Branches (Overseas) 4
Subsidiary Janata Capital and Investment Limited, Dhaka
Janata Exchange Company srl, Italy
Janata Exchange Inc, USA
Employee 12,182
Authorized Capital BDT 30,000 Million
Paid up Capital BDT 19,140 Million
Share Ownership Fully (100%) owned by Bangladesh-Government

Source: Website of JBL

2.2: Award
Recently the Bank has been recognized internationally and domestically for its good
Performance.
International Award -"World's Best Bank Award-2009 in Bangladesh
Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2009 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth Assets,
Profitability, Strategic relationships, Customer Service, Competitive pricing and innovative
products.
International Award -"World's Best Bank Award-2008 in Bangladesh
Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2008 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Strategic relationships, Customer Service, Competitive pricing and innovative
products.
International Award -"World's Best Bank Award-2007 in Bangladesh
Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2007 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Customer Service, Product innovation and Advanced Technology.
International Award -"World's Best Bank Award-2006 in Bangladesh
Janata Bank Limited was awarded Best Bank-Bangladesh in the Global Finance, World's Best
Bank Awards, 2006 by New York based Financial Magazine "Global Finance". "Global
Finance" has identified winning banks based on number of criteria including growth in Assets,
Profitability, Customer Service, Product innovation and Advanced Technology. Besides the
above-mentioned awards, Janata Bank has achieved numerous awards from the beginning of its
establishment.
  Janata Bank Limited receives "Asian Banking Awards 2005" on Credit Scheme for
Handicapped People:

The Awards were presented by the Asian Bankers Association (ABA) and Bank Marketing
Association of the Philippines (BMAP) in the Asia Pacific Bankers Congress (APBC) 2005 on
June17,2005 in Manila, Philippines. It got this award in 2004.
                                                                 
International Award -The Bank of the Year-2004 in Bangladesh:

Janata Bank Limited has been awarded as 'The bank of the year 2004 in Bangladesh' by the
London based Financial Magazine the Banker of the Financial Times Group. This is for the
second consecutive year that the Janata Bank Limited has been awarded 'Bank of the year'.
Janata Bank Limited shows a remarkable progress in the year 2003. Its return on assets was
1.36% and return on investment was 6.47% respectively. Janata Bank Limited is also emerging
as the strong and innovative bank within the country. The profile of its success is enriched by a
package of new qualitative product lines, prudent liability and assets management and others.
Most of the key financial indicators of the bank showed a very positive improvement at the year
ended December 2003.The Bank got this award in 2003, 2002 and in 2001.

2.3: Corporate level of organization structure:

The Corporate Headquarter of The Janata Bank has nine divisions and each comprising of
various departments. The major divisions in headquarter are as follows:

Human Resource Department:

In the Janata Bank, this department deals with the employees as the core resources of the
organization. This department mainly emphasize on the recruitment, selection of the employees.
They are also motivating the employee to work efficiently and effectively.

I.T Department:
This department mainly deals on the computer’s hardware and software relates problems. This
department also works on the network system establishment in all branches. They store up-to-
date information in their website.

Marketing Department:
The Marketing department mainly works for -
To promote the different types of services of information to people
To improve the marketing network throughout the country
To implement the marketing strategies and the concept of Trade marketing

Audit & Inspection Department:

Head Office Audit and Inspection Division comprising sufficiently experienced and skilled
manpower carried out internal audit and inspection work on regular basis. In 2002, all the
branches of the Bank were audited at least once. Surprise inspections were also undertaken in
many branches. Bangladesh Bank audit teams also conducted comprehensive and foreign
exchange related inspections on the affairs of many branches during the year under report.

Credit Department:
The credit department mainly deals with different types of loan and advances. This department
analysis the proposal, approvable, monitoring the credit, disbursement, credit recovery position
and credit policy that is given by all branches.

International Banking Department:

The foreign exchange department mainly deals with export, import and foreign currency of
different branches of the Bank.

Common Services Department:

They take care of Banks assets and utilize their assets properly.

Public Relation & Protocol Department:

This department deals with people & coveys people’s views to the management.

Dead Stock & Stationery:

This department prints all security documents of Bank & looks after of this security items.

2.4: Management
The management of the bank is vested on a Board of Directors, subject to overall supervision
and directions on policy matters by the board that is constituted in terms of Bangladesh Bank
(Nationalization) Order 1972. Board of Directors, constituted by 13 (Thirteen) members, has
authority to organize, operate and manage its affairs on commercial consideration within the
Board Policy of government. There are directors appointed by the Government. Other members
of the Board including M.D are also government appointed out of that at least three have the
experience in the field of Finance, Banking, Trade, Commerce, Industry and Agriculture. The
managing director is the chief Executive of Bank.

2.5: Organization
Janata Bank is the largest commercial bank of the country. It has 906 branches throughout the
country and abroad to serve the nation. There are 4 overseas branches at U.A.E. The Head Office
of the bank is located at Janata Bhaban 110 Motijheel C/A, Dhaka. It has 15 GM, 77 DGM 192
AGM, 576 First AGM, 1037 SEO, 3085 EO and 460 AEO. Principal Offices are headed by First
AGM and each department is headed by AGM.
 Head Office
↓
G.M. Office
↓
Area Office
↓
Regional Office
↓
Branch

Figure: 2.2 Functional Hierarchies

2.6: Hierarchy of the Janata Bank

Chairman

Vice Chairman

Directors

  Managing Directors & CEO

  Deputy General Manager

General Manager

↓
 Assistant General Manager

Senior Principal Officer

Principal Officer

Senior Officer

Provisionary Officer
Figure-2.3: Organizational structure of Janata Bank

2.7: Vision of Janata Bank

To become the effective largest commercial bank in Bangladesh to support socio-economic
development of the country and to be a leading bank in South Asia.
2.8: Mission of Janata Bank
Janata Bank Limited will be an effective commercial bank by maintaining a stable growth
strategy, delivering high quality financial products, providing excellent customer service through
an experienced management team and ensuring good corporate governance in every step of
banking.

2.9: Objective of the Janata Bank:

 To earn customer satisfaction through diversified banking activities and introduction of

innovative banking.
 To improve the customer services in recent times by introducing a number of IT-based
reform measures.
 To remain one of the best banks in Bangladesh in terms of profitability and Assets Quality.
 To ensure an adequate rate of return on investment.
 To maintain adequate liquidity to meet maturing obligations and commitments.
 To maintain a healthy growth of business with desired image.
 To maintain adequate control systems and transparency in procedures.
 To ensure optimum utilization of all available resources

2.10: Products & Services of Janata Bank

Products:
Deposit Products Credit Products
Current Deposit Account Term Loan

Short Term Deposit Trade Finance

Savings Bank Deposit Account Import Finance

Foreign Currency Deposit Export Finance

Monthly Savings Scheme SME Financing

Monthly Profit Based Savings Scheme Micro Credit

Janata Bank Savings Pension Scheme Agricultural & Rural Credit

(JBSPS)

Janata Bank Deposit Scheme (JBDS) Consumer Credit

Education Deposit Scheme (EDS) Home Loan

Medical Deposit Scheme (MDS) Loan for Merchant Banking

Janata Bank Monthly Savings Scheme

(JBMSS)

Janata Bank Special Deposit Scheme

(JBSDS)

Janata Bank School Bankig Savings

Karjakram

New/Special Products:

Financing IT Sector Loan to Diagnostic Centers

Financing of Industries NRB Gift Cheque

Ready Cash Loan to Travel Agencies

Windows for SMEs

2.2: Table— (Products of Janata Bank Ltd.)

Services
Bills Collection: Payments made on behalf of Govt. to

Gas bills of Titas, Bakhrabad and Jalalabad Non- Govt. teachers’ salaries
Gas Transmission Co.

Electricity bills of Dhaka Electricity Girl Students scholarship/stipend & Primary

Supply Authority, Dhaka Electricity CO. Student Stipend.

Bangladesh Power Development Board and Army pension

Rural Electrification Board.

Telephone-bills Of Telegraph and Widows-divorcees and destitute Women

Telephone Board. Allowances

Water/Sewerage bills of Water and Old-age Allowances

Sewerage Authority.

Municipal Holding Tax of City Food procurement Bills

Corporation/Municipalities.

A pilot scheme is underway to provide

personalized services to the clients.

Table2.3: (Services of Janata Bank Ltd.)

2.11: Ethical Principals of Janata Bank Ltd.
Bank deals with public money where ethical compliance is very important. JBL follows and
maintain ethical values in every sphere of its banking operation and customer services. The core
ethics of JBL business are as follows:
• Implement justice and fairness;
• Ensure optimal customer services;
• Maintain privacy and secrecy of customer’s information;
• Prevent money laundering and corruption;
 Protects and upholds corporate values
 Maintain accuracy and transparency in financial reporting.
 Protect natural environment