CHAPTER # 01

INTRODUCTION

1
1.0 Introduction:
Banking has a long and rich history. It started as a result of peoples need. And with ages it
has been playing an important role in fulfilling the dire needs of businessmen and others. As
the size and complexities of business is increasing day by day banking sector is also
providing various innovative services with basic functions to increase size but to reduce the
complexities. Modern banking is a result of evolution driven by changing economic
activities and life styles. Entering in to a new millennium, banking needs have become more
diverse and exotic than ever before. It is known now that commercial bank is a profit
maximizing institution. Hence it should provide loans to those sectors in which its return is
higher. But the nationalized commercial banks are conducting banking business with
different purposes. The main purpose is not just to make profit but also to maximize the
social benefit. The main functions of commercial banks are as follows: A commercial bank
collects and manages deposits. It provides cheque facilities and interests for its customer
deposits which may be either demand or time deposits of different maturity A commercial
bank extends credit to a great variety of borrowers through loans as well as by purchasing
securities that are either fully or partly financed by commercial banks. Commercial banks
provide a variety of other services to their customers as for example remittance facilities,
credit information about customers, financial advice, collection of debts and dues etc. Banks
also provide a number of trust services to their customers. These services may either
corporate trust services, which arise in connection with the issue of bonds; personal trust
services under which they manage property on behave of their clients or corporate pension
funds that provide retirement benefit for their employees.

1.1. Background:

Financial institution and banks play an important role in financial inter mediation and
thereby contribute to the overall growth in the economy. Presently the financial system in
Bangladesh consists of the Central Bank, Nationalized Commercial/Specialized Banks,
Private Banks, Foreign Banks and other Non-Bank financial institution. This report is based
on Janata Bank Ltd or JBL.
Banks can be identified by the functions they perform in the economy. They are involved in
transferring of funds from their savers to borrowers and in paying for goods and services.
Among all types of financial institutions banks are the most common financial institution in

2
the economy of a nation. Banks are one part of a vast financial system of markets and
institutions. Banks encourage individuals and institutions to save and by which individual
and institutions invest in different projects which ultimately help the economy to grow, new
jobs to be created and living standards to rise. In this assignment we are going to evaluate
the performance of reputed commercial banks-. We are going to evaluate the last five year
performance of the bank
1.2 Rationale of the Study:
This report has been prepared as a part of the internship program, which is an integral part of
the BBA Program .Under this program a student has to take a total of 128 credits. A student
has to take a 3-month internship program to an organization. This will give a practical
orientation of his/ her theoretical study. After completion of the program she/ he has to
submit an internship report to the department and defence the report. So this report is
originated as part of the course requirement of the BBA program. This report on General
Banking Operation of Janata Bank Limited was assigned by academic supervisor Md.
Masudul Hasan, Lecturer, Department of Business Administration, Atish Dipankar
University of Science and Technology (ADUST).

1.3 Objective of the Report

General:
The objective of the study is to gather practical knowledge regarding banking system and
operation. This practical orientation gives us a chance to coordinate the theoretical
knowledge with the practical experience.
Specific:
To reveal the general banking activities of Janata Bank Limited, Corporate Branch,
Dhaka.
To find out the problems (if any) relating to the general banking activities of Janata
Bank Limited.
To be acquainted with the background of the bank, Janata Bank Ltd.
To justification information and processing of account opening and disclose.
To recommend some suggestions based on findings.

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1.4 Limitation of the Study

The present study was not out of limitations. But as an internee it was a great opportunity for
me to know the banking activities in Bangladesh - especially of Janata Bank. Some
constraints are appended bellow:
Lack of Information or Data: Adequate and in-depth well-organized information is not
available for access. Though the officials tried to assist, sometimes their working pressure
couldn't give me proper assistance what I needed. There is some information which need
special permission from top level is not always achievable.
Time Constraint: It is something like impossible to cover the entire Overall Banking
Performance and performance phenomena exploiting a three month time period while an
employee or an officer is awarded with one or two year probationary period to do his or her
particular job.
Secrecy of Information: Some of the information needed to explore the current marker
scenario of the company was not disclosed.
Comparison Status: I have had no opportunity to compare the foreign exchange banking
system of the Janata Bank with that of other contemporary and common size banks. I had
compared the banks that information is available. It was mainly because of the shortage of
time and internship nature.
Lack of Experience: Though I have prepared many reports before, I had no experience of
internship. So inexperience is one of the main constraints of the study.

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 CHAPTER # 02

METHODOLOGY OF THE STUDY

5
2.0. Methodology of the Study:

To complete this report I have followed a systematic study which include working,
inspecting and talking to the executives at different levels of the organization to know the
present scenario of the banking practice. To facilitate make the report more meaningful and
presentable two sources of data and information have been used widely.

2.1 Data Collection:

The data used to furnish this report has been collected from the Primary sources &
secondary sources.

2.1.1.1Primary sources:
The primary data has been collected in the following ways:
Direct communication with clients
Sharing the experience and knowledge of my colleagues.
2.1.2.1 Secondary sources:

The Secondary Sources of data and information are:

Annual report of Janata Bank Ltd.
Web site of Janata Bank Ltd.

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 CHAPTER # 03

LITERATURE REVIEW

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3.0 Literature Review

So far project has been conducted on ways to measure and improve General Banking
Activities measuring & ensuring of Bank clients, tools of General Banking Activities . The
reviewed articles to prepare this report are as follows:

According to M.K. Dash and D.M. Mahatma (2005), With better understanding of General
Banking Activities, companies can determine the actions required to meet the customers
needs. They can identify their own strengths and weakness, where they stand in comparison
to their competitors, chat out path future progress and improvement. General Banking
Activity measurement helps to promote an increased focus on custmer outcomes and
stimulate improvements in the work practices and processes used within the company.

Kotler (1999) also noted that satisfaction is a function of perceived performance and
expectations which indentifies feelings of a person resulting from comparing a products
perce lived performance in relations to his or her expectations. For most companies and
businesses, obtaining feedback from customers and clients is essential. It provides them with
a glimpse into what they are doing right, what they are doing wrong, as well as ways in
which operations and relationships could be improved. But obtaining and organizing this
feedback in a way it can easily be sorted and delivered to the right people within the
company can often be challenging.

Levesque, T McDougall, G.H.G, (1996) studied on determents of Customer Satisfaction in

retail banking, and the study investigated the major determinant of customer satisfaction and
future behavioural intensions in the retail banking sector. The study identifies the
determinants that include service quality dimensions (e.g. getting int right the first time).
Service features (e.g. competitive interest rates), service problems, service recovery and
products used. The study finds, in particular, that service problems and the banks service
recovery ability have a major impact on customer satisfaction and intention to switch banks.
However, the results do not support the view the satisfactory problem recovery leads to
greater customer satisfaction or closer bonding of the customer with the provider. At best a

8
satisfaction problem recovery leads to the same level of customer satisfaction as when a
problem had not occurred.
According to M.S. Khondaker and M.Z. Mir (2006), Genernal Banking Activities is grossly
neglected area for performance measurement in almost all least Developed Countries
(LDCs) and Bangladesh is no exception. Like most LDCs. Bangladesh is also coming under
pressure from the IMF, World Bank, ADB etc. to reform its inefficient financial sector.
Anecdotal evidence suggests that state owned commercial banks (SCBs) have lost their
market share and is near to closure because of their poor service quality as perceived by
their customers. In contrast, private and foreign commercial banks working in the same
social-economic and cultural settings are growing rapidly with higher profits and market
share.

The mentioned researches, journals and book have been used to developed clear thoughts
about the topic General Banking Activities and as a guideline to prepare & organize this
report.

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 CHAPTER # 04

GENERAL BANKING OPERATION OF JANTA

BANK LTD.

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4.1 General Banking Activities
General banking provides the foundation of banker customer relationship through opening
account. This is the most busy department and the daily transaction of concerned to the
customers for drawing or depository money, Selling of instruments, collection of their
instruments providing other additional services to them and keep customer section busy.
General banking department performs the core functions of bank, operates day-to-day
transactions of banking operation. Every day it receives deposits from customers and meets
their demand for cash. It opens new accounts, remits customers money from one place to
another through issuing bank draft, pay order, telegraphic transfer, collects all bill like Local
cheque collection, Inward bill collection and outward bill collection for customers. Since
bank is bound to provide these services everyday, general banking is also known as retail
banking.

General Banking

Account Remittance Cash Clearing Accounts

opening section
section

Fig: General Banking Activities

4.2 Collection of Deposit

Deposits are life-blood of a commercial bank. Without deposits there are no businesses for
the commercial banks. Accepting deposits is one of the most important classic functions of
commercial banks. Bank deposits can be broadly classified as follows:
1. Demand Deposits and
2. Time Deposits.

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 Bank
deposit

Demand deposits Time deposits

(Current deposits, (FDR, STD, DPS
saving deposits etc.) etc.)

Fig: Classification of Bank Deposits.

Demand deposits can be withdrawn without any prior notice, e.g. current deposits. Janata
Bank Corporate Brancha ccepts demand deposits through the opening of
Current Account and
Savings Bank Account
On the other hand a deposit that is payable at a fixed date or after a period of notice is called
Time Deposit. This branch accepts time deposit through
Fixed Deposit Receipt (FDR)
Short Term Deposit (STD)
Janata Bank Deposit Scheme (JBDS)
Sanchoy Pension Scheme (SPS)
While accepting these deposits, a contract is done between the bank and the customer. When
a banker opens an account in the name of a customer, there needs a contract between
them.This contract will be valid only when both parties are agreeing to enter in to the
contracts. As account opening initiates the fundamental relationship and the banker has to
deal with different kinds of persons with different legal kinds of persons with different legal
status and different personality and mentality, the officials of the branch remain very much
cautious and vigilant about the competency of the customers.
4.3 Procedures for Opening of Accounts
Before opening of a current or saving account, the customers must complete the following
formalities.
1. Application on the prescribed form.
2. Furnishing photographs (two copies).

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3. Introduction by an account holder.
4. Putting three specimen signature in the Specimen Signature Card.
5. Mandate (if necessary).
6. Voter ID card number.
7. Voter ID card of Nominee.
8. Photograph of Nominee attested by account holder (1 copy).
After doing the above formalities, the branch provides the customer a pay-in-slip and a
cheque-book. The cheque-book may be off 10 pages, 20 pages, 50 pages or 100 pages
depending on the type of account the customer has opened. A customer has to fill up the
Requisition Slip for cheque-book. Then a new cheque-book will be filled with the account
number of the customer and name of the branch in each page of the cheque-book. Then
name and account number of the customer are registered in the Cheque-book Issue
Register. The requisition slips are maintained and recorded as vouchers. The serial number
of the cheque book is also entered in the computer for maintenance of records and to prevent
any attempt of forgery.

4.4 Application Form for Current and Saving A/C

Followings are the contents of the application form for opening saving and Current A/C in
Corporate Branch
1. Name of the Applicant:
2. Fathers/ Husbands Name
3. Nationality
4. Occupation
5. Date of Birth
6. Present Address
7. Permanent Address
8. Introducers Address
9. Information about the Nominee
10. Special Instruction for Operation of the A/C
11. Initial Deposit
12. Specimen Signature of the Applicant
13. Voter ID Number

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In the case of joint A/C the following headings are additional in the form-
1. Operational Instruction of the A/C
2. Signature
In the case of partnership A/C, the following headings are additional in the form-
1. Partners Signatures
2. Partners Names

4.5 Relevant Documents for Current and Saving A/C

Types of attached documents usually vary with the nature of the A/C being opened.
Followings are the list of documents that should be enclosed with the A/C Opening Form
for opening account for different kinds of A/C openers:
In case of Club/Society:
a. Up-to-date list of office bearers
b. Certified copy of resolution for opening and operation of A/C
c. Certified copy of by laws and regulations/constitution
d. Copy of government approval (if registered)

In case of Co-operative Society:

a. Copy of by laws duly certified by the co-operative officer
b. Up-to-date list of office bearers
c. Resolution of the executive committee as regards of the A/C
d. Certified copy of certificate of registration issued by registrar, co-operative society
In case of Non-government College/School/Madrasha/Muktab:
a. Up-to-date list of the members of the governing body/managing committee
b. Copy of resolution of the governing body/managing committee authorizing opening and
operation of the A/C duly certified by gazetted officer
In case of Trustee Board:
a. Prior approval of head office of the bank
b. Certified copy of deed of trust, up-to-date list of members of the trustee board and
certified copy of the resolution of trustee board to open and operate the A/C
In case of Minors A/C:
a. Putting the word Minor after the title of the A/C
b. Recording special instruction of operation for the A/C

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c. The A/C opening form is to be filled in and signed by either of the parents or the legal
guardian appointed by the court of law and not by the minor
In case of Limited Company:
a. Certified true copy of the memorandum and articles of association of the company
b. Certificate of incorporation of the company for inspection and return with a duly certified
photocopy for banks records
c. Certificate from registrar of joint stock companies that the company is entitled to
commence business (in case of public limited company for inspection and return) along with
a duly certified photocopy for banks records.
d. Latest copy of balance sheet
e. Extract of the resolution passed in the general meeting of the company for opening of the
A/C and authorization for its operation duly certified by the Chairman/Managing
Director of the company
f. List of Directors with addresses
g. Authorized signature
General conditions or rules in respect of operating Current/Saving A/C in Corporate
Branchare as follows:
a. A minimum balance of tk500 and tk1000 must be maintained in the Saving and Current
A/C respectively.
b. A suitable instruction by an introducer acceptable to the branch is required.
c. Recent photographs of the A/C openers duly attested by the introducer must be produced
d. Withdrawal of deposit can be made two times in a week in case of saving A/C
e. For Saving A/C, an application must be submitted to the branch authority if withdrawal is
tk50, 000 or more but customer rarely follow this rule.
f. Interest rate for Saving bank A/C is 5% per year

4.6 Fixed Deposit Receipt (FDR)

Fixed deposits are deposits in which an amount of cash is deposited in bank for a fixed
period specified in advance. Hence these deposits are time deposits or time liabilities.
Normally, the money on a fixed deposit is not repayable before the expiry of the fixed
period. At the time of opening the deposit account, the banker issues a receipt
acknowledging the receipt of money on deposit account. It is popularly known as FDR.
Necessary documents for opening a FDR A/C in Corporate Branchare as follows-

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 FDR form
FDR card
Photo of the Nominees attested by the A/C holder
The Fixed Deposit A/C Opening Form contains the following headings-
Amount in figures
Period
Rate of interest
Beneficiaries name and address
Special instruction in case of joint A/C
Information about nominees
Address of the applicants
Specimen signatures
FDR number
After opening a FDR A/C, it is usually recorded in the FDR Register. In the case of Fixed
Deposit Account, the bank needs not hold a cash reserve to repay money to the customers.
The payment will be made after the completion of a certain period. Hence, Janata Bank Ltd
offers a high interest rate in Fixed Deposit Account. The interest rates followed by Janata
Bank Ltd for Fixed Deposit Account are- Period Interest rates
For 3 months to > 6 months @7.00%
For 6 months to > 12 months @7.50%
For 12 months to > 24 months @7.75%
For 24 months to > 36 months @8.00%
Normally a customer is not allowed to withdraw money before the expiry of the fixed period
in case of Fixed Deposit Account. However, Janata Bank Ltd. allows its customers to
withdraw fixed deposit amount at any time after giving a short notice.
In this case the customers will get interest rate by the following ways-
If withdrawal happens before 3 months, there will be no interest.
If withdrawal happens before 6 months, 3 months interest rate.
If withdrawal happens before 1 year, 6 months interest rate.
If withdrawal happens before 2 years, 1 years interest rate.
If withdrawal happens before 3 years, 2 years interest rate.
In case of Before Maturity Encashment interest rate is calculated for the days from the date
of opening the FDR account. The FDR becomes renewed automatically in Janata Bank Ltd.

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if the customer does not withdraw it within 7 days of maturity. In case of encashment of
FDR(say for tk. x) in maturity, following accounting treatments are applied-
Interest on FDR A/C ---------------------------Cr (say tk p)
Excise Duty on FDR----------------------------Dr (say tk q)
10% income tax on interest--------------------Dr (say tk r)
FDR A/C-----------------------------------------Dr (tk {x+p-q-r})
Cash A/C-----------------------------------------Cr (tk {x+p-q-r})
If the customer wants to draw the interest only, then the following entries are given-
Interest on FDR A/C----------------------------Dr
Cash A/C-----------------------------------------Cr
Some other important factors in case of FDR A/C are as follows-
FDR is not negotiable instrument.
The legal position of a banker in respect of a fixed deposit is that of a debtor who is bound
to repay the money only after the expiry of the fixed period.
Cheques are not permitted for Fixed Deposit Account.
Fixed Deposit Accounts are subject to Income Tax Act.

4.7 Short Term Deposit (STD)

In Short Term Deposit Account, the deposit should be kept for at least seven days to get
interest. The interest offered by for STD is less than that of savings deposit. For this type of
account, frequent withdrawal is discouraged and it requires prior notice. STD is also called
Seven Days Notice Current A/C.
STD Interest Rate
Up to 10 core 3.50%
Above 10 core 3.60%
In Rampura Branch, customers are given an instruction that their current accounts will be
debited whenever the deposited amount crosses a certain limit and this amount will be
transferred to the STD account. The branch follows this instruction by giving the
following entries-
Customers Current A/C--------------------Dr
Customers STD A/C-----------------------Cr

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4.8 Janata Bank Deposit Scheme (JBDS)
According to this scheme, a person of minimum 18 years old can open any Janata Bank
Deposit Scheme A/C by depositing at least tk.500 or maximum tk.20000 in each month for
10 years term. After maturity of the term, the depositor can withdraw the total deposited
amount with interest or can withdraw by monthly installment. The depositor has to deposit
the specified amount for him/her by the 11 th day of each month either in cash or cheque. In
respect of JBDS account, the depositor can select more than one nominee for claiming the
deposited money after his/her death. No joint account is allowed in this scheme. The main
characteristics of JBDS are as follows-
A system of secured income has been confirmed by JBDS for the depositor in their old
age who invested money from their early incomes.
A scope of proper and exact utilization of money is possible by JBDS.
The total deposited amount with interest will be given to the investors and this is certain.
The JBDS gives the investors a chance of bearing the educational or marital expenses of
their adult sons or daughters.
The total invested money in JBDS is absolutely income tax free. The earning from JBDS
is not considered while charging the annual income tax.
In JBDS, a 8.5% compounding interest rate is applied and it is usually calculated on
yearly basis.
Account holder can take lone on JBDS and Interest rate for loan id 2% more than JBDS
rate (8.5% + 2% = 10.5%)
A depositor can withdraw the total amount of money (Principal + Interest) at the expiry of
the certain period. For JBDS, the payment systems in case of maturity of an account are as
follows:
Amount of Periods Payment in case of Total payment
monthly (years) maturity of the (tk)
installment period (tk)
500 10 60000 94609
1000 10 120000 188218
2000 10 240000 375435
5000 10 600000 937088
10000 10 1200000 1873176
20000 10 2400000 3745352
Table 3.1: The payment system (source: Deposit Department)

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4.9 Transfer of Account to another Branch
The account holder requests to transfer his accounts by giving the following instructions-
Reasons for transfer the account
Address of the branch at which customer wants to transfer the account
The unutilized cheque book will be returned to the transferring branch before transfer of
account.
After verification, the approval of the manager for transferring the account is obtained and
then the specimen of the forwarding letter of transferee branch will be sent. After the
application is received duly approved from the manager, the branch transfer the account
based on the following entries-
Customers Account-----------------------------Dr
Transferee Branch Account---------------------Cr
Service charge(income) ------------------------Cr
4.10 Closing of an Account
The following circumstances are usually considered in case of closing an account or
justifying the stoppage of the operation of an account-
Notice given by the customer himself or if the customer is desirous to close the account
Death of the customer
Customers insanity and insolvency
If the branch finds that the account is inoperative for a long period
If Garnishee Order is issued by the Court of Law on the bank branch
Before the account is closed the manager will approve the application and closing charge
being incidental charge which should be debited to the account. To close the account, the
cheque book is to be returned to the branch. Accounting entries will be-
Customers Account---------------------------Dr
Account Closing Charge (income) ----------Cr

4.11 Bank Remittance

Remittances of funds are one of the most important aspects of the commercial banks in
rendering services to its customers. Among various services rendered by the commercial
bank to its customers, remittance facilities are very well known and popular. The word
Remittance means sending of money from one place to another place through post or
telegraph. Banks extend this facility to its customers by means of receiving money from one

19
branch of the bank and making agreement for payment to another branch within the country.
In general there are two types of bank remittance-
1. Inward remittances and
2. Outward remittances.
The remittance facilities of a commercial bank enable its customers to avoid risk arising out
of theft or loss in carrying cash money from one place to another or making payment to
someone in another place. Banks take the risk and ensure payment to the beneficiary by
charging the customer.
Chart for Bank Remittances Flow

Remitter Issuing Paying Payee

Branch Branch

Fig: Chart for Bank Remittances.

Considering the urgency and nature of transaction, the modes of bank remittances may be
categorized as follows-
Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
The following register books are maintained for remittance purpose-
DD, MT, TT Issue Register
DD, MT, Advice Received Register
DD, MT, TT Payment Register
DD Ex-Advice Payment Register

4.12 Demand Draft (DD)

Demand Draft (DD) is an instruction payable on demand. It is a negotiable instrument issued
by the branch of a bank containing an order to another branch of the same bank to pay fixed
sum money to a certain person or order of demand. This instrument can be purchased by a
customer from a particular bank for himself and can be handed over to the purchaser for
delivery to the beneficiary. The payee or beneficiary will claim the amount of money in the
instrument by producing the same to the concerned paying branch. Demand draft may be
paid in cash to the payee on proper identification or the amount may be credited to his
account (in case of A/C holder of the bank). Banks issue draft for nominal commission. The

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commission depends upon the amount to be transmitted. The purchaser of the DD needs not
to be a customer or account holder of the bank.

Application Issuing branch Branch gives Purchaser

submitted to prepares DD DD to sends DD
branch purchaser to payee

Paying branch Payee presents

pays the DD to branch
amount

Fig: Flow chart for a DD

4.12.1 Issuing of Demand Draft:

While issuing a DD, an official must be confirmed about the existence of the branch where
the DD is to be issued by the applicant or purchaser. Application on banks prescribed form
(F-117) for DD is duly filled and signed by the applicant. Thereafter, the applicant will be
asked to deposit the amount mentioned in the DD and exchange/commission computed
correctly at the prescribe rate. On receipt of cash, a voucher is passed and scrolled by at least
two officers. Then the DD is issued and recorded in the DD Issue Register filling the
appropriate columns. The DD application is treated as credit voucher of SBG A/C by
showing credit entry against the paying branch. For any of DD issued, a relative DD Advice
is sent to paying branch where the Advice is converted into Voucher. Corporate
Branchcharges tk.1.50 for per tk.1000 as its commission for DD. The minimum commission
is tk.15. The procedure of issuing a DD against cash could be shown by the flow chart in the
following ways-

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 Accept application/pay-in-slip signed by the
purchaser

Calculate and take exchange charges

Take cash from the purchaser

Sign and hand over the DD

Send advice of drawing to paying branch

Fig: Flow Chart for DD issue against cash

Accounting entries will be-
Customers Account------------------Dr
SBG Account-------------------------Cr
Income Account (Commission) ---Cr

4.12.2 Procedure of Demand Draft Payment:

After receiving the DD advices from different branches, the paying bank will verify the
genuineness of the advices by verifying test numbers and signatures. Beside this, payment of
drafts can be made without the advice of the issuing bank and at that time payment is called
Acceptance Payment. Total amount of advice is debited to SBG A/C and credited to draft
payable A/C. That is-
SBG A/C------------------------Dr
Draft payable A/C -------------Cr
On production of DD by the beneficiary, payment will be made by the following ways-
Draft payable A/C---------------Dr

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SBG A/C-------------------------Cr
If the payment is to be made before receiving of the DD advice, DD payment is recorded in
the Ex-advice payment register by debiting the Draft Payable Ex-advice A/C (DD paid
without advice). On receiving of the advice, it will be entered into the DD, MT Advice
Receive Register and the amount will be credited to Draft Payable A/C. Before making
payment of the DD, the paying branch will ascertain the genuineness of its issuance as well
as genuineness of payee.

4.12.3 Cancellation of Demand Draft:

In some cases, the purchaser of the bank draft may ask the issuing branch to return the
amount of DD stating its non-requirement. In these cases, the issuing branch will obtain a
written application from the purchaser whose signature must be tallied with the signature
obtained earlier. An amount of tk.25 be recovered from the purchaser as Cancellation
Charge and will be credited to the Commission A/C. The purchaser will acknowledge
receipt of the proceeds writing the words Received Payment by Cancellation and will sign
on revenue stamp affixed on the draft. In this case, payment is made by debiting the SBG
A/C and a relative cancellation advice is sent to the paying branch.
4.12.4 Issuing of Duplicate Demand Draft:
If DD is lost, the issuing branch may issue a duplicate DD. But before issuing a duplicate
DD, the branch issued to observe the followings-
Verify purchasers signature on the DD application slip
Take indemnity bond from purchaser
Clearance from paying branch whether the DD is already paid or not to be obtained
DD cancellation advice to be sent to the paying branch
Lastly the duplicate DD is issued and the word DUPLICATE in red ink is stamped in the
front side of the DD block.

4.13 Mail Transfer (MT)

The facility of sending money by mail is available to customers who have accounts with the
bank. The remitter deposits the amount that will be transferred from the remitting branch
with small commission. An advice is issued by the branch to another branch for crediting the
specified amount to the account of the payee maintained with the bank. It is a non-negotiable
instrument and generally is not handed over to the customer rather sent through post office

23
to the concerned branch. Remittance of money by Mail Transfer is relatively cheaper, quite
safer and more convenient. Mail Transfer is effective not only within the country but also for
international remittances. For local MT (say within the area of Dhaka) special MT Register
Book is maintained as in like DD. MT is normally issued from branch to branch of the same
bank. Normally the mail charge is tk.15 for any amount. From tk.1 to tk.20000 commission
is tk.20 and for above tk.1 added for every tk.1000. The payment procedures for MT are as
follows-
1. MT is received directly from the issuing branch by post and the payee does not present it
for payment.
2. The paying branch checks the name and account number of the payee in MT to determine
whether it agrees with the name and account number maintained in the paying branch.
3. The paying branch verifies the signatures of the authorized officials of the issuing branch.
4. MT is entered in the DD, MT, TT Payment Register.
5. No commission is deducted.
6. If everything related to MT is correct then the passing officer will pass the MT by putting
signature on it and the voucher is credited to the respective beneficiarys account.

4.14 Telegraphic Transfer (TT)

Telegraphic Transfer (TT) is another widely used mode for remittances of funds. TT is
quicker than DD or MT. If an applicant wants to remit the amount urgently to the payee in
another city or district he may request the issuing branch to send it by TT. For TT a branch
sends a telegram instead of airmail. The branch usually recovers from the telegram charges
in addition to the usual service charges. A TT could be express or ordinary and it is always
sent in coded-form. Corporate branch follows the following procedures in case of TT
issuing-
1. The customer deposits money in the branch.
2. The customer obtains a cash memo containing TT serial number.
3. TT serial number, notifying party name are mentioned in the telex massage.
4. The telex department confirms transmission of the telex.
Accounting entries for TT
Cash/Clients account----------------------Dr
SBG account--------------------------------Cr
Income account (commission) -----------Cr

24
Procedures for the incoming TT
After receiving the telex, it is decoded at first. Then the TT serial number, test number are
verified. A credit voucher in favor of the beneficiarys account is prepared and passed. For
TT telephone charge is tk.25 and tk.1-20000 commission is tk.20 and above it tk.1 added as
commission for each tk.1000. 15% vat taken on commission.
4.15 Payment Order (PO)
Payment Order (PO) is an instrument that contains an order for payment to the payee only in
the case of local payment whether on behalf of the bank or its constituents. In the beginning
stage, PO was issued only to affect local payments of banks own obligations but at present
it is also issued to the customers. They purchase PO to deposit money. PO is in the form of
receipt which is signed by the two officials. The money of PO is deposited to the banks own
account named Payment Order A/C. Payment of this instrument is made from the issuing
branch. PO is not transferable; therefore it can only be paid to-
The payee on identification
The payees banker who could certify that amount and credit that amount to the payees
A/C
A person holding the letter of authority from the payee whose signature must be
authenticated by the payee.
For below tk.1000 the commission is tk.20 and for tk.1001 to tk.100,000 the commission
charge is tk.30 and for above tk.100,001 it will be tk.50.
Remittance Commission (tk) VAT (tk)
DD 20 to 100 15%
MT 20 to 100 15%
TT 20 to 100 15%
Accounting entries: PO by cash
Cash A/C-----------------------------Dr
Bill Payable--------------------------Cr
PO commission----------------------Cr
Accounting entries: PO by cheque
Cheque A/C--------------------------Dr
Bill Payable--------------------------Cr
PO Commission---------------------Cr

25
4.16 Operation of Cheque
A cheque, signed by the drawer is an unconditional order in writing and drawn on a specified
bank. Bank will pay a certain sum of money to the cheque bearer. A cheque involves three
parties-
1. The drawer
2. The drawee (the bank) and
3. The payee (to whom the cheque is to be paid)
The following procedures are usually done for passing a cheque-
A clerk scrutinizes the cheque for the date, the amount and the signature and then he gives
the drawer of the cheque a token number and he also writes that number at the back side of
the cheque. He then passes the cheque to the ledger-keeper after giving a seal.
The ledger-keeper again scrutinizes the cheque for his satisfaction. He then debits the
amount in the ledger book and passes the cheque to the authorized officer. The authorized
officer verifies the signature of the account holder very carefully to protect any kind of
fraudulent activities and passes it to the cash officer for payment.
The drawer of the cheque presents the token in the Cash Payment Counter and the
cashier makes payment after verifying the token. The cashier may want another signature to
compare with the previous one.

4.17 Stopped Cheque

In case of stopped cheque the following formalities are done-
The accountant keeps the Stopped Cheque Register and reserves the pertinent
documents.
After receiving a letter or telegram for stopping the payment of cheque, the time of its
receipt is noted down by the accountant.
The ledger-keeper and the officials are also informed immediately.
Lastly the cheque is stopped.

4.18 Collection of Cheque

In Corporate Branch cheques of its customers are received for collection. In case of received
cheque, the following points are followed carefully-

26
 The cheque should not carry a date older than the receiving date for more than six months.
In that case the cheque will be a stale cheque and it will not be allowed for collection.
Again the date of cheque should not be more than one day forward than the receiving date.
The amount in figures and words in both sides of the pay-in-slip should be same and they
will also be same in the cheque.
The name mentioned in cheque should be same in both sides of the pay-in-slip and in the
cheque.
The cheque must be crossed.
For the collection of cheques the branch can be divided in to three sections-
1. Short Credit (SC)
2. Local Short Credit (LSC)
3. Clearing.
4.18.1 Clearing:
Janata Bank Ltd is a schedule bank. According to the Article 37(2) of the Bangladesh Bank
Order, 1972, the banks that are member of the Clearing House are called as Schedule
Banks. The schedule banks clear the cheques drawn upon one another through the clearing
house. This is an arrangement by the central bank where the representatives of the banks
gather to clear the cheques everyday. The place where the banks meet and settle their dues is
called the clearing house. The clearing house sits for two times in a working day.

4.19 Clean Cash Book

The clean cash book is the abstract of each days transactions classified under the General
Ledger heading. Clean Cash Book is written to-
Test the arithmetical accuracy of one days transaction.
Consolidate one days transaction.
Help position in the General Ledger.
Test the closing cash balance of the branch.

The procedures for writing the clean cash book are as follows-
1. At first the writer sees that the books are checked and authenticated by the authorized
officials properly.
2. The clean cash book should be checked daily from the subsidiary register by an authorized
supervising official.

27
3. Each morning the manager will scrutinize the whole of the previous days vouchers.
4. All vouchers should be collected by the clean cash book writer and handed over to a
supervising official.

28
 CHAPTER # 05

Data Processing, Analysis and Interpretation

29
5.0 Analysis and Interpretation
5.1 Objectives of Performance Evaluation
To determine the extent to which management assigned responsibilities have been
realized.

To identify the causes of deviations from established performance standard.

To suggest courses of action to rectify out of control situations.

To provide motivation for improving in performance.

To established a basis for comparison between different sectors in companies.

5.2 Techniques of performance Evaluation

The following techniques can be used for measuring performance:

Trend analysis.

Ratio analysis.

Regression Analysis.

5.3.1 Trend Analysis:

Trend analysis is a one kind of criteria, which may be used to measure the performance of a
bank. The trend can represent the growth or decline of a bank over a period of time. Here we
have analyzed the trend of total deposit, total loan and advances and net income or loss.
i) Trend analysis of total deposit:
The amount of total deposit from 2011 to 2015 are as -
Table: 1
Year Total Deposit (Tk.)
2011 820000000
2012 125000000
2013 126000000
2014 119000000
2015 118000000

Graph: 1

30
 Amount in taka
Total Deposit (Tk.) Linear (Total Deposit (Tk.))
140,000,000
120,000,000
100,000,000
80,000,000

60,000,000
40,000,000
20,000,000
0
2011 2012 2013 2014 2015
Year

Interpretation

The above graph shows the total deposit of JBL. Vertical shows the x axis & indicates years,
horizontal axis shows the y axis & indicates the amount of taka. From the above graph we
see that total deposit was increasing from the year 2011 to 2015. But the amount of taka is
the highest in year 2015.

ii) The trend analysis of total loan and advance:

The amount of total loan and advances.

Table: 2
Year Total amount of loan and
Advances(Tk.)
2011 11000000
2012 16000000
2013 9000000
2014 12000000
2015 17000000

The trend of total loan and advances from for the year 2011 to 2015

31
 Graph: 2
Amount in taka

Total amount of loan and Advances(Tk.)

Linear (Total amount of loan and

18,000,000
Advances(Tk.))
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2011 2012 2013 2014 2015
Year

Interpretation

The above graph shows the total amount of loan & advances of JBL. Vertical shows the x
axis & indicates years, horizontal axis shows the y axis & indicates the amount of taka.
From the above graph we see that total amount of loan and advances were increasing from
the year 2011to 2015. But the amount of taka is the highest in year 2015.

iii) The trend analysis of net income or loss:

The amount of net income or loss

Table-3

Year The amount of net income or loss

(Tk.)
2011 Nill
2012 2100000
2013 2300000
2015 1700000
2015 700000

32
Graph: 3
The amount of net income or loss (Tk.)
Linear (The amount of net income or loss (Tk.))
2500000
2000000

1500000
1000000

500000
Amount in taka

0
2011 2012 2013 2014 2015
Year

Interpretation

The above graph shows the amount of net income or loss of JBL. Vertical shows the x axis
& indicates years, horizontal axis shows the y axis & indicates the amount of taka. From the
above graph we see that the net income or loss was nill in year 2011 then it was increasing
from the year 2011 to 2012. But it was decreasing from the year 2012 to 2015.

5.3.2 Ratio Analysis:

Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use
of ratio to interpret the financial statements so that the strengths and weakness of a firm as
well as its historical performance and current financial condition can be determined.
i) Current Ratio:
It is calculated by dividing current assets by current liabilities. Current assets include cash
and those assets, which can be converted into cash within a year, such as marketable
securities,debtors and inventories. On the other hand, the current liabilities include creditors,
bills payable, accrued expenses, short term bank loan, income tax liability and long-tern debt
maturing in current year.

The total amount of current assets and current liabilities are as follows:
Table: 4
Year Current Assets (Tk.) Current Liabilities (Tk.) Ratios
2011 2000000 29000000 0.069
2012 1000000 65000000 0.015
2013 5000000 80000000 0.063
2014 4000000 59000000 0.068
2015 3000000 61000000 0.049
Average 0.264

33
The graph shows the current assets and current liabilities from year 2011-2015

Graph: 4

Current Assets (Tk.)Current Liabilities (Tk.)

90000000
80000000
70000000
60000000
50000000
Amount in taka

40000000
30000000
20000000
10000000
0
2011 2012 2013 2014 2015

Year

Interpretation

The above graph shows the current assets & current liabilities of JBL. Vertical shows the x
axis & indicates years, horizontal axis shows the y axis & indicates the amount of taka.
From the above graph we see that the current liabilities are higher than current assets. The
highest amount of liabilities in the year 2015. And the lowest amount of assets in year 2011.

ii) Total Debt to Total Assets:

The ratio of total debt to total assets, generally called the debt ratio, measures the percentage
of total funds provided by creditors. Debt includes current liabilities and all bonds.
The total debt and total assets are
Table-5
Year Total Debt (Tk.) Total assets (Tk.) Ratios
2011 57000000 90000000 .63
2012 41000000 139000000 .29
2013 77000000 140000000 .55
2014 80000000 130000000 .62
2015 42000000 101000000 .42
Average 2.51

34
Graph-5

2011 2012 2013 2014 2015

Interpretation

The above graph shows the total debt & total assets of JBL. Vertical shows the x axis &
indicates years, horizontal axis shows the y axis & indicates the amount of taka. From the
above graph we see that the total debt is lower than the total asset in all years. The total debt
was the lowest amount in year 2011. And the total assets were the highest amount in year
2015.

iii) Return on Assets:

The return on total assets seeks to measure the effectiveness with which the firm has
employed its total resources.
The total amount of net income and total assets
Table-6
Year Net income (Tk.) Total assets (Tk.) Ratios
2011 10000000 90000000 11.11%
2012 20000000 138000000 14.49%
2013 20000000 141000000 14.18%
2014 20000000 130000000 15.38%
2015 10000000 101000000 9.90%
Average 65.06%

Graph: 6

35
 Amount in taka Net income (Tk.) Total assets (Tk.)

160000000
140000000
120000000
100000000
80000000
60000000
40000000
20000000
0
2011 2012 2013 2014 2015

Year

Interpretation

The above graph shows the net income & total asset of JBL. Vertical shows the x axis &
indicates years, horizontal axis shows the y axis & indicates the amount of taka. From the
above graph we see that the net income was lower than total assets. The highest amount of
total assets in the year 2015. And the lowest amount of net income in year 2011 & 2015.

36
CHAPTER # 06

Findings of the Study

37
6.1 Findings of the Study
I compared and analyzed financial performance of Janata Bank with three Government
Banks in Bangladesh. I compare the performance in terms of total deposits, assets,
shareholders equity and the three profitability ratios like ROA, ROE and ROD, Operational
Efficiency and Asset Utilization. From the analysis the following findings are given below:
Total Deposits reveals that the average of total deposits for Janata bank TK 352670
million and that makes it the first position.
Total assets of Janata Bank average is 432251.It is the highest score among Pubali
and Agrani bank.It is positive thing for Janata bank.
Total shareholders equity average is second position. In (2011-2015) Janata bank is
not good amount.
Return On Equity ratio is not positive side for Janata bank during (2011-2015).
Return On Deposits is considered to the profitability performance. In this term Janata
bank situation is not very good.
In the rank indicators Janata bank overall position is first position. But there
performance is not very good.
For Janata bank operational efficiency is good. Janata Bank Limited follows
traditional(manual) banking system.
The banking sector is parley computerized.
Loans and Advance department take a very long time to sanction a loan as a result
they are losing their customer
They are not up to dated their website. They do not update all the information in the
site regularly so customers or interested people might not find all the latest
information.
They are used Infinity Technology software for their computerized banking
activities.This software is very slow and sometimes stopped working few times in a
day.
Behaviors of the employee towards customers are not good enough compared to
local and international banks exists in Bangladesh.
All the information is not readily available on the branch of the Janata bank

38
 CHAPTER # 07
RECOMMENDATION & CONCLUSION

39
7.1 Recommendations

In the light of findings, the recommendations are as follows:

1. The form should be precise with the quality information to the points of the client rather
unnecessary or vague information. This can create the opportunity to serve more people in
short time.
2. If the interested clients have proper documentation in favor of his/her identity then there
should be probation for avoiding introducer.
3. Bank should formulate simple process for issuing cheque book, Pay order, Bank draft.
4. To hire and install sufficient modern sophisticated technology because of present market
demand of the customer and the educated customers now want technology based banking
but customs are confused about services.
5. To recruit sufficient skilled manpower because the bank employees should communicate
properly with customers about their deposit and other schemes.
6. Installation required equipments and daily up gradation.
7. JBL should emphasize on its advertisement strategy to capture new customers.
8. The bank must need the establishment of R&D department.
9. Proving sufficient power supply facilities.
10. Taking of immediate steps of reducing employee turnover.
11. Should introduce new innovative and modern customer service options.
12. Enhancing its motivational activities.
13. Involvement of direct social investment.
14. Reengineering its core business pattern.

40
7.2 Conclusion

As the largest nationalized commercial bank Janata Bank Ltd is operating every corner of
the country providing the banking services to different classes of customers. The area where
there is no branch of any bank of the modern competitive banking sector, there one can find
a branch of Janata Bank. Banks play an active role for the development of the country.
Janata Bank Ltd has made commendable improvement over the past years. I am proud to get
an opportunity to continue my internee and my career in my organization. I tried to gather
experience in General Banking and summarize all the information within the report. It will
also be helpful for the bank management if they carefully analyze the problem and consider
recommendation in this paper and take necessary actions for corrective measures. General
Banking is one of the main departments of any bank. To take any banking services, one has
to fulfill all the requirements of this department first. The nature of the relationship between
a banker and a customer depends upon the service rendered by the personnel of general
banking department. General Banking department usually give optimum services to their
customers though they have some limitations. If the management of the bank can turn these
limitations positively then they can attain the ultimate goal. I am certain that the experience
that I get through my internship in Janata Bank will help me a lot in my future banking
profession.

41
References & Bibliography
Dotchin, J.A. & Oakland, J.S. (1994). Total Quality Management in Services Part 2:
Service Quality. International Journal of Quality & Reliability Management, 11(3).
Feigebaum, A.V. (1986) Total Quality Control, 3rd edition. McGraw-Hill, New York.
Malhotra, N.K. (2003). Marketing Research, (3rd edition), Prentice-Hall.
Michael J. Fox, (1993): Quality Assurance Management, (1st edition) CHAPMAN &
HALL.
Profile of Janata Bank Ltd.
Annual Report of Janata Bank Limited, 2012.
Articles of Janata Bank Ltd.
Commercial Bank Management, 3th Edition, Benton E. Gup, James W. Kolari.
Financial Markets and Institutions, Jeff Madura.
Different types of Voucher of Janata Bank Ltd.
Half Yearly Report of Janata Bank Ltd.
Several Booklets from Janata Bank Ltd.
Several News letters from Janata Bank Ltd.
Website of Janata Bank Ltd, Website: www. janatabankbd.com.

42
 Annexure -1: Company Profile
Historical Background of Janata Bank
Janata means people. This is a progressive Bank. Immediately after the emergence of
Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were
nationalized and renowned as Janata Bank. It has been operating since its inception in 1972
both in Bangladesh and overseas. Janata Bank has been playing a significant role in the
economic development of the country by mobilizing savings and canalizing funds into
different productive sectors. It is also a major player in the fields of micro-credit and
software development.
Janata Bnak, the second largest commercial Bank in Bangladesh, has an authorized capital
of BDT 20000 million, paid up capital of BDT 19140 million, operating profit BDT 1212.71
crore, Net profit BDT 955.14 crore and reserve of BDT 14125 million. The Bank has a total
asset of BDT 58697.37 crore.

Janata Bank operates through 898 branches including 4 overseas branches at United Arab
Emirates. It is linked with 1239 foreign correspondents all over the world. The Bank
employees are more than 15,020 persons. The corporate head office is located at Dhaka with
10 Divisions comprising of 44 Department. As a part the conscious development of existing
Human Resources, Janata Bank through its three training institutes during the year 2003
imparted training to 4699 officers and staffs. It computerized 90 important branches;
nonstop services introduced in 88 branches; ONLINE Banking in 60 important branches
under important branches under implementation; ATM, EFT facilities.

The Board of Directors is composed of 13 members headed by a chairman. The Directors are
representatives from both public and private sectors. The Bank is headed by the Chief
Executive Officer & Managing Director, who is a reputed banker.
Targeting poverty, Janata bank provides all commercial banking services to ots clients
focusing on the national interest and sustainable growth. The major fields of its activities
may be represented as below:
# Retail/Personal Banking.
# Credit Programs.
# Micro Enterprises & Special credit.
# Rural Banking/ Credit program.

43
# International Banking.
Vision
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.

Mission
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 network.

Ethical Principles
Bank deals with public money where ethics, integrity and trust is the most essential.
Janata
Bank protects and upholds these principle issues in every area of its management
activities and customer services. The basic characteristics of employees code of ethics
and business conduct are as follows:
Ensure customer services with utmost care, respect, dedication, integrity and
responsibility.
Protect privacy and confidentiality of customers information.
Prevent money laundering and fraud forgery.
Protects and upholds corporate values.

Core values
The core values of Janata Bank Limited are:
1. Professionalism.
2. Commitment.
3. Diversity.
4. Accountability.
5. Transparency.
6. Integrity.
7. Quality.
8. Dignity.

44
 9. Growth.
These can be shown by following diagram:

Professionalism

Growth Commitmen
t

Diversity
Dignity
Values
of JBL
Quality
Accountabilit
y
Integrity
Transparency

Fig: Core values of JBL

Source: Annual Report of JBL-2015

Objectives of Janata Bank Ltd.

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 times 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.

45
Achievements of Janata Bank Limited
1. Janata Bank Limited achieves 2013 Performance Excellence Award by City bank
N.A.
2. JBL wins The Asian Banking & Finance Wholesale Banking Awards 2013 & Retail
Banking Awards 2013.
3. JBLs position in Global Ranking Company Awards-2012.
4. Business Asia Most Respected Company Awards-2012
5. JBL wins The Asian Banking & Finance Awards2012
6. International Award-The Bank of the year-2011 in Bangladesh.
7. ICMAB best Corporate Award-2011.
8. International Award-Worlds Best Bank Award-2009 in Bangladesh.
9. International Award-Worlds Best Bank Award-2008 in Bangladesh.
10. International Award-Worlds Best Bank Award-2007 in Bangladesh.
11. International Award-Worlds Best Bank Award-2006 in Bangladesh.

Divisions of Janata Bank Ltd.

1. Human Resource Division 6. International Banking Division
2. IT Division 7. Common Services Division
3. Marketing Division 8. Public Relation and Protocol Division
4. Audit & Inspection Division 9.Dead stock and stationary Division
5. Credit Division 10.Research & planning Division

Organizations structure

46
Like every other business organization, the foremost duty of the top management is to makes
all the major decisions of Janata Bank Limited. The boards of directors are being at the
topmost level of organizational structure plays an important role in policy formulation and
successful execution, but it is not a direct concern of the day-day operations of the bank.

Chairman

MD ( Managing Director)

DMD (Deputy Managing Director)

GM (General Manager)

Organization DGM (Deputy General Manager)

Structure
AGM (Assistant General Manager)
FAGM (First Assistant General
Manager)

SEO (Senior Executive Officer)

EO (Executive Officer)

AEO (Assistant Executive Officer)

AEO (Teller)
Assistant Officer (Grade-1&2)

Support Stuff (Catagory-1&2)

Fig: Organizational structure of JBL.

Source: Annual Report 2015

47
Board of Director

Name Designation
Dr. Abul Barkat Chairman
Mmr. Md. Emdadul Hoque Director
Dr. Jamaluddin Ahmed, FCA Director
Dr. RM Debnath Director
Mr. Nagibul Islam Dipu Director
Prof. Mohammed Moinuddin Director
Mr. Md. Abu Naser Director
Ms. Sangita Ahmed Director
Dr. Nitai Chandra Nag Director
Sayed Bazlul Karim B.P.M Director
A.K.M Kamrul Islam,FCA Director
Mr. Md. Mahabubur Rahman Hiron Director
Mr. S.M. Aminur Rahman CEO & Managing
Director
Table 2.1: Board of Directors.
Source: Annual Report of JBL-2015

Product and Services of JBL

JBL renders both corporate and retail banking services with a strong focus on socio
economic development of the country. Products and services of JBL are briefly mentioned
below:
Deposits:
a. Current and Call Deposits.
b. Savings and Bank Deposits.
c. Monthly Scheme Deposits.
d. Term Deposits.
e. Special Notice Deposit
Loans and Advances:
a. Agriculture Loan Program.
b. Poverty Alleviation Program.
c. Specialized Loan Program.
d. Rural Credit.
e. Term Loan for Large and Medium Credit programs.
f. Other Loans and Advanced.

48
 g. Export Oriented Industry Term/project financing.
h. Micro & Cottage industries loan.
i. Working Capital.
j. Export Financing.
k. Import Financing.
l. Trade Financing.
m. Other Credit program.
Financial Services:
a. Inland Renitence.
b. Foreign Renitence.
c. Other Financial Services.
1. E-Service:
a. Internet banking.
b. Automated clearing.
c. ATM banking.
d. Speedy Remittance.
Branch Summary of JBL
There are 897 branches of JBL in home and abroad. Among them 468 branches are
suited in urban areas including four foreign branches and 419 branches are in rural
areas. And all foreign branches are situated in United Arab Emirates.
Total branches:
SL No. Branch Type Number
1 Corporate Branch-1 (including local office 21
and Janata Bhavan Corporation)
2 Corporate Branch-2 68
3 Overseas Branch 04
4 Grade-1 Branch 197
5 Grade-2 Branch 225
6 Grade-3 Branch 267
7 Grade-4 Branch 115
Total Branch 897
Table 2.2: Branch summary of JBL

Overseas Branches:
SL. No. City No. of Branch Status
1 Abu Dhabi 1 Foreign

49
 2 Al-Ain 1 Foreign
3 Sharjah 1 Foreign
4 Dubai 1 Foreign
Total 4
Table 2.3: Overseas Branches of JBL.
Source: Annual Report of JBL-2015
SWOT Analysis of JBL
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weakness,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.
S=Strengths- Attributes helpful for achieving the objective.
w=Weakness- Attributes harmful for achieving the objective.
O=Opportunities- External conditions that are helpful for achieving the objective.
T=Threats- External conditions that may harm the businesss performance.
The SWOT Analysis of Janata Bank is presented in a below:

Internal Sources

50
 Strengths Weakness
Same recognition within the Lack of technological resources as
community. well as internal banking.
Holds a sound reputation in the Lack of knowledge of customer
banking industries Sponsoring by profile.
the government. Increased presence by means of
additional ATMs.
Community involvement increasing Lack of using single softer to
presence in the market. integrate all the branches of the
Management knowledge of industry. bank.
Financial condition: strong capital Lack of new product
and asset quality. Not implementing the Online
Well connected distribution Banking in all activities
channel from Head Office to all Niche markets (under-served ethic
branches. markets, bank at work, etc.)
Sound and large capital base. Attracting candidates for acquisition
Sustainable growth. over the next few years.

External Sources
Opportunities Threats
Business expansion in capital Lack of appeal to younger, student
market. affluent potential customers.
More experienced & Political instability of the country.
managerial know-how. Lack of Flexibility to adapt to any
Opportunity to expand change.
geographically within Mismanagement of administration
Bangladesh. Strong interference of CBA
Real online banking software (Collective Bargaining Agent)
will be in function soon.
Expansion of ATM and Credit
Card.

From the above discuss we can say that Janata Bank Ltd. Is one of the largest privatized
Bank of the country, and Elephant Road Branch is satisfactory. But to face challenges of
Globalization Janata Ltd. should to restructure its operation to improve as a first generation
bank.
Annexure-2

51
 Balance sheet
Janata Bank Ltd.
For the 31st December 2015
Particular 2015 taka 2014 taka

PROPERTY AND ASSET

Cash 33,523,433,921 31,819,554,129

Cash in hand 6,177,058,034 5,845,317,572

Balance with Bangladesh Bank and its agent
bank(s) 27,346,375,887 25,974,236,557

Balance with other banks and financial institutions 13,022,788,855 12,812,667,541

In Bangladesh 798,666,469 1,379,847,096
Outside Bangladesh 12,224,122,386 11,432,820,445

Money at call and short notice 1,528,573,549 6,581,960,445

Investments 195,312,603,088 109,847,480,293

Government 175,955,254,025 92,587,970,007

Others 19,357,349,063 17,259,510,286

Loans and advances 286,543,099,163 305,807,489,360

Loans, cash credit, overdraft etc. 267,266,667,941 278,276,369,061
Bills purchased and discounted 19,276,431,222 17,531,120,299

Fixed assets including land, building, furniture and

fixtures 9,777,915,295 9,634,455,011
Other assets 47,265,380,976 34,892,817,930

TOTAL PROPERTY & ASSETS 586,973,794,847 511,396,424,709

LIABILITIES AND SHAREHOLDERS EQUITY
Liabilities
Borrowings from other banks, financial 8,659,231,673 11,310,479.315
institutions and agents 478,559,884,853 409,859,558,868
Deposits and other accounts 61,241,348,330 59,916,096,429
Current accounts and other accounts etc. 3,447,652,431 3,407,937,088
Bills payable 93,526,875,315 89,456,221,368
Savings bank deposits 320,344,008 257,079,303,983
Fixed deposits 62,783,272,426 73,457,618,862

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Other liabilities 549,957,388,952 494,627,657,045
Total liabilities 37,016,405,895 16,768,767,664
Shareholders equity 19,140,000,000 11,000,000,000
Share capital paid-up 7,919,183,534 5,968,200,039
Statutory reserve 99,903,232 89,851,660
Legal reserve 6,140,901,167 6,175,333,102
Asset revaluation reserve 236,513,619 268,483,276
Foreign currency translation reserve 235,881,492 89,370,642
Revaluation reserve for HTM 673,267,602 207,660,369
Revaluation reserve for HFT 3,606,993,099 3,147,514,620
Revaluation reserve on shares
Retained earnings (1,036,237,850) (10,177,646,044)
TOATL LIABILITIES AND SHAREHOLDERS
EQUITY 586,973,794,847 511,396,424,709
Off- balance sheet items
Contingent liabilities 99,726,433,170 112,558,953,654
Acceptances & endorsements _ _
Letters of guarantee 12,58,565,561 16,213,462,653
Irrevocable letters of credit 82,031,203,368 89,938,795,817
Bills for collection 5,113,664,241 6,406,731,184
Total off-balance sheet items including contingent 99,726,433,170 112,558,953,654
liabilities 193.40 152.44
Net asset value per share(NAVPS)

Income statement
Janata Bank Ltd.
For the 31st December 2015

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Particulars 2015 Tk. 2014 Tk.
Operating income
Interest income 36,203,647,402 34,219,016,925
Interest paid on deposits & borrowings etc. 34,215,363,219 27,501,476,249
Net interest income 1,988,284,184 6,717,540,676
Investment income 13,894,964,599 8,008,664,419
Commission, exchange & brokerage 3,856,258,688 5,358,028,266
Other operating income 1,378,834,048 2,180,097,144
Total operating income(A) 21,118,341,519 22,264,330,505
Operating Expenses
Salary& allowances 6,154,145,696 5,350,723,764
Rent, taxes, insurance & electricity etc. 793,386,481 699,141,479
Legal expenses 22,527,918 5,249,514
Postage, stamp, telecommunication etc. 26,508,577 20,850,015
Stationary, printings advertisements etc. 238,209,856 189,297,281
Chief executives salary & fees 11,342,172 11,425,340
Directors fees 3,457,267 2,215,900
Auditor fees 3,985,070 4,237,495
Depreciation, repairs & maintenance 511,622,109 439,199,781
Other operating expenses 1,106,340,401 850,539,812
Total operating expenses(B) 8,871,525,546 7,572,880,581
profit /loss before provision & tax (C)=(A-B) 12,46,815,973 14,691,449,924
Provision for loans & advances 53,919,355 25,239,712,177
Provision for off balance sheet exposures - (390,000,000)
Provision for other assets 13,908,114 9.400,000
Provision for employees benefit 1,139,137,905 2,378,972,167
Provision for diminution value of investment - 52,204,534
Other provisions 323,866,670 155,000,000
Total provision(D) 1,530,832,045 27,445,288,878
Total profit/loss before tax (E)=(C-D) 10,715,983,928 (12,753,838,954)
Provision for taxation (including ruler tax) (F) 1,107,603,183 2,467,356,629
Current tax 832,016,258 2,975,073,695
Deferred tax 284,586,924 (507,717,067)

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Net profit/loss after tax(G)=(E-F) 9,608,380,745 (15,221,195,583)
Net profit attributable to :
Equity holders of the bank 9,608,380,745 (15,221,195,583)
Non-controlling interest - -
9,608,380,745 (15,221,195,583)
Net profit for the year 9,608,308,745 (15,221,195,583)
Appropriations
Statutory reserve 1,952,727,802 -
General reserve - -
Legal reserve 14,474,329 7,617,492
1,967,202,131 7,617,492

Retained surplus 7,611,178,614 (15,228,813,074)

Earnings per share 86.82 (138.37)

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