INTERNSHIP REPORT

ON
Green Banking Practice in Janata Bank Ltd.

PREPARED BY
Sumaia Hafiz
Roll: 09-003
MIS 9th Batch
Department of
Management Information Systems
University of Dhaka

SUPERVISED BY:
Dr. Md. Akram Hossain
Professor
Department of
Management Information Systems
University of Dhaka

Date of Submission: October 17, 2019

LETTER OF TRANSMITTAL

October 17, 2019

Dr. Md. AkramHoassain
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Professor
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka
Sub: Submission of Internship Report.

Sir,

I feel immense pleasure to submit my Internship Report on “Green Banking practice in Janata
Bank” as fulfilment of our MBA program. A pragmatic Experience from Janata Bank at New
Market branch which is essential requirement for the completion of MBA program. This report is
a result of the Internship program that I have conducted during specified time. All the works
presented here is done with utmost sincerity and honesty. I have tried my level best to make this
report comprehensive and informative as possible within the time allowed. I believe that the
experience I acquired from this study will be an invaluable asset in my life. This is a complete
one and sincerely looks forward to any possible correction.
I hope that you will find the report satisfactory. I will be available for any further clarification of
the information presented in the report.

Yours obedient

Sumaia Hafiz
Id no: 09-003
Department of Management Information systems
University of Dhaka

PREFACE
There is a great difference between theoretical and practical affairs. To justify the theoretical
knowledge & practical orientation is greatly important in internship program bringing the
students close to the practical world.

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The internship program has given me an immense opportunity to maximize theoretical and
practical knowledge. As an MBA student, it is my great privilege to enter into this kind of
internship program. In this report, I have tried my level best to make the study successful for
which I have been assigned. I am confessing some important information may be missing here
but I have tried to place authentic and realistic information in this report.

Acknowledgment

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No work can be completed by one individual without the help of others. In every step of this
study, many individuals and institutional experts supported me. It gives me enormous pleasure to
acknowledge them with my gratitude.

I would like to acknowledge the assistance of my internship supervisor Dr. Md. Akram
Hossain, Assistant Professor, Department of Management Information systems, Faculty of
Business Studies, University of Dhaka for providing me all guidance and support that I needed.
Your sincere guidance, tireless cooperation, valuable suggestion and inspirations of creating a
unique report enabled me to overcome all the problems during the course of my internship
program and while preparing this report.
I would also like to thank Md. RuhulKabir (AGM), Afroza Begum, senior officer (Deposit),
Jahangir Alam (Officer), Ferdousi Begum, SPO (Management) and other officials of Janata
Bank Limited,Newmarket Branch, Dhaka for their comments and assistance. I express my
deepest sense of regards and gratitude to them. Finally, my sincere gratitude goes to my family
and friends for supporting me, sharing their thought and giving me moral support during the
preparation of this report.

Sumaia Hafiz
Id no: 09-003
9th Batch
Department of Management Information Systems
Faculty of Business Studies

Certificate of Supervisor

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This is to certify that Sumaia Hafiz, Id No: 09-003 has completed her internship program under
my supervision. The content of this report is prepared by herself from her short working
experience in Janata Bank Limited at Newmarket Branch. I have found his hardworking and
sincere throughout the internship period, wishing him all the best for the future.

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

Dr. Md. Akram Hossain

Professor

Department of Management Information systems

Faculty of Business Studies

University of Dhaka

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Declaration

Myself, Sumaia Hafiz, hereby declaring that this report titled “Green Banking practice in Janata
Bank Limited” has been prepared based on my internship for three months in the above-
mentioned organization with due integrity and confidentiality. Findings and recommendations
are made here from my absolute observation. In addition, I have taken necessary assistance and
filtered contents of my report regularly from my supervisor.

However, I would also like to declare that I am responsible for any major or minor mistakes if I
have ever committed here. I seek your kind bounteousness in this regard.

-----------------------------------------

Sumaia Hafiz

Id No: 09-003

MIS 9th Batch

Department of Management Information Systems

Faculty of Business Studies

University of Dhaka

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EXECUTIVE SUMMARY

An internship is a 3-credit compulsory course for MBA program. The objectives of this program
are to fulfill the gap between academic and real-life situations. After completion of academic
course requirement, the students of MBA are sent to various organizations for a three months
internship to gather practical knowledge. It helps the student to cope up with the real-time
situation. As bank is one of the most important financial institutions. So, I have selected the
“Janata Bank Limited” for my internship, which is one of the leading banks of the bank arena in
Bangladesh offering full range of personal, corporate, international trade, foreign exchange, lease
finance, and capital market service.

Satisfied employees make for satisfied employers. The following paper will provide you, as an
employer of a profit organization, with the evidence and the tools that you need to create a
climate within your workplace that fosters job satisfaction.

The general objective of this report is to evaluate “Green Banking practice in Janata Bank
Limited”. The specific objectives are to determine the effectiveness, efficiencies, faults, security
theft of Online Banking Services offered by Janata Bank relatively than other banks of
Bangladesh.

Descriptive research was used in this report. Two sources of data and information have been
used in this report. These are primary and secondary sources. The population of the report is the
total executives of the bank. The sample frame of the report is every number of Janata Bank,
Newmarket Branch, Dhaka. The on-probability convenience sampling procedure is used in the
survey.

The most important analytical part of this report is the comparison of JBL with some other
Government Bank of Bangladesh which indicates that Janata Bank Limited is improving day by
day.

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Table of Contents
Acknowledgement.......................................................................................................................................4
Certificate of Supervisor..............................................................................................................................5
Declaration..................................................................................................................................................6
EXECUTIVE SUMMARY.................................................................................................................................7
CHAPTER 1: INTRODUCTION..........................................................................................................12
1.1 Origin of the study:..........................................................................................................................12
1.2 Rationale of the study:.....................................................................................................................13
1.3 Objectives of the study:...................................................................................................................14
1.4 Methodology of the study:...............................................................................................................15
1.5 Limitations of the study:1................................................................................................................16
CHAPTER 2: AN OVERVIEW OF JANATA BANK LIMITED............................................................17
2.1 Brief History of Janata Bank Limited:.............................................................................................17
2.2. Janata Bank Limited (JBL) at a glance:..........................................................................................18
2.3 Branches of Janata Bank Limited....................................................................................................18
2.4 Vision:.............................................................................................................................................19
2.5 Mission............................................................................................................................................19
2.4 Core Values:....................................................................................................................................19
2.5 Products of Janata Bank Limited:....................................................................................................20
2.6 Services of Janata Bank Limited:.....................................................................................................24
2.7 Organizational Structure:.................................................................................................................26
2.8 Purpose of Janata Bank Limited:.....................................................................................................26
2.9 Function of Janata Bank Limited as a Commercial Bank:...............................................................28
2.10 Corporate Governance of Janata Bank Limited:............................................................................29
CHAPTER 3: LITERATURE REVIEW...................................................................................................30
3.1 About Green Banking:.....................................................................................................................30
3.2 Assessment of the Concept of Green Banking:................................................................................30
3.3 Elements of Green Banking:...........................................................................................................31
3.4 Challenges Towards Green Banking:...............................................................................................31
3.5 Global Initiatives Of Green Banking:..............................................................................................32
CHAPTER 4: GREEN BANKING PRACTICE IN BANGLADESH.......................................................34
4.1 Rules & Regulations Governing Green Banking In Bangladesh:.....................................................34

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 4.2 Initiatives Taken By Bangladesh Bank:...........................................................................................35
4.3 Initiatives Taken By Government:...................................................................................................35
4.4 Initiatives Taken By Commercial Banks and Financial Institutions:...............................................36
CHAPTER 5: DATA ANALYSIS AND FINDINGS...............................................................................47
5.1 Data Analysis on Green Banking at Janata Bank Limited:..............................................................47
5.2 Findings:..........................................................................................................................................55
CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS.....................................56
6.1 Recommendations...........................................................................................................................56
6.2 Conclusions:....................................................................................................................................57
References:................................................................................................................................................58

Tables and Figures:

Table-1: Branches of Janata Bank
Table-2: Products of JBL

Table-3: Services of JBL.

Table-4: Sanction & Disbursement of Funded Loan

Table-5: Utilization of Climate Risk Fund (In Million Taka).

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Table-6: Environmental and social risk rating

Table-7: Solar Powered Branches and ATM/SME Units.

Table-8: Green Finance

Table-9: Green Finance

Table-10: Direct Green Finance as % of Total Finance

Table-11: Automation towards Green Banking

Table-12: Training in April-June, 2018

Table-13: Major Green Banking Activities at a Glance in April-June, 2018

Table 14: Loans for HHK Project.

Table 15: Loans for Bio-Gas Plant

Table-16: Loans for Solar Panel

Table 17: Loans for Bio-Fertilizer

Table 18: Number of ATM Booths

Table 19: Number of online and computerize branches.

Figures:

Figure-1: Organizational Structure of JBL

Figure-2: Function of Janata Bank Limited.

Figure-3: Quarterly Comparison of Utilization of Fund

Figure-4: Quarterly Comparison of Environmental Risk Rating.

Figure-5: Direct Green Finance as % of Total Funded Loan Disbursement.

Figure-6: Green Finance across all categories

Figure-7: Quarterly Comparison of Online Banking.

Figure-8: Investment in HHK project

Figure-9: Investment in the biogas plant

Figure-10: Investment in Solar Panel

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Figure-11: Investment in bio-fertilizer

Figure-12: Number of ATM booth

Figure-13: Number of Computerized branches

CHAPTER 1: INTRODUCTION

1.1 Origin of the study:

In today's world, academic education is not the only requirement to make a student perfect to
become competitive with the corporate & global business world. By doing an internship
program, a student can get the opportunity to learn to face the real business world. An internship
is highly needed to gain ideas, knowledge, and experience. As an MBA Internee, I have tried to
maintain pace with the competitive business environment on official activities, culture,
philosophy, norms& styles. It would reflect the best in any field of my personal life. The
accounts manager was my overall guide & superior. Receiving his all sort of cordial support, I
have availed the opportunity to work with office for 45 days where I acquired idea about real
business and corporate world. The primary purpose of this report is to get an idea about the

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"Green Banking practice in Janata Bank Limited (JBL) in Bangladesh", a second-generation
bank of the country and make an industry analysis about green banking on the banking sector of
Bangladesh. This report is an attempt to reflect the position of Janata Bank Limited in the
banking industry of Bangladesh, the procedures, policies, and activities related to green banking
of Janata Bank Limited.

1.2 Rationale of the study:

A bank is a financial instant having its own work process. Banks collect the money from the
consumers first and based on that give some interest on that or take the interest from that and
they also are offering to lend money that called loan in the cash. Banks basically work as an
intermediary for consumers, (money intermediaries) a dealer of loans and debts.

For a successful MBA program, a study on a practical view should be attached to post-
graduation and for making a life wrathful it is necessary to do that study on a particular matter.
For knowing the actual business world with the reading material, authorities, faculties always try
to give information on different purposes; internship report is one of them. It can change a whole
view of reading materials and give a student a real face of world by giving practical knowledge
by doing sensible work.

Regarding, banking industry, that becomes one step ahead rather than another sector of financial
and economic institutions of Bangladesh. That basically makes effort to reduce all those

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environmental factors that make afford to destroy a better life, banks are trying to find those by
their activities, if one sector can find problem on that issue than other sectors can also do this that
can make a sustainable development to make.

In the entire domestic type bank in the era of a financial institution, Janata Bank Ltd. takes some
major initiatives. In the present, the world becomes globalized, man makes to stable them into
init. To live in competitive world, we should take a competitive advantage, I feel to join any
banking sector program for my internship part because I feel that can help to make me a better
business-related person. Also, I can work on saving the banking industry thinking all of these
green projects.That is the initial purpose while choosing banking sector for gaining practical
knowledge.

I had to organize a report under the direction of Dr. Md. Akram Hossain of this MBA program,
Department of Management Information Systems, University Of Dhaka. On the other hand, as an
intern, I got the opportunity to perform my internship at Janata Bank Limited. I was doing my
internship at Newmarketbranch, Janata Bank limited 3 months practical experience program.

1.3 Objectives of the study:

The objective of this report can be viewed from two perspectives:
1) General Objective
2) Specific Objective

General Objective:
This internship report is primarily prepared as a requirement of the completion of the Masters of
Business Administration degree under the Faculty of Business Studies at University of Dhaka.

Specific Objective:
The specific objectives of this report are-
 To find the historical evaluation of Green Banking at Janata Bank Limited.
 To find the concept of the institution's management about Green Banking.
 To analyze the components of Green Banking & their effectiveness of Janata Bank Limited.
 And finally to identify the major areas of efficiency or inefficiency of the bank regarding its
Green Banking initiatives.

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1.4 Methodology of the study:
This report has been prepared on the basis of experience gathered during the period of
internship. For preparing this report, information is collected for primary and secondary data
from different sources as an annual report and website of Janata Bank Ltd. & Bangladesh Bank.
The details of the work plan are furnished below:

Data collection method:

Relevant data for this report has been collected primarily by direct investigations of different
records, papers, documents, operational processes, and different personnel. The interviews
were administered by formal and informal discussions. Information regarding office
activities of the bank has been collected through consulting bank records and discussion with
bank personnel.

Data sources:
The information and data for this report have been collected from both primary and
secondary sources.

Data processing:
Data collected from secondary sources have been processed manually and the quantitative
approach has been used through the study.

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Data analysis and interpretation:
The quantitative approach has been adopted for data analysis and interpretation taking the
processed data as the base. So the report relies primarily on analytical judgment and critical
reasoning.

The objectivity of any study depends largely on how methodologically it is done. For the purpose
of this report, I have used both qualitative and quantitative information to give it a clear
judgment opportunity. All the information used in this report is from two major sources. These
are:

Primary Sources:
 Face-to-face interviews with the concerned employees of the bank.
 Conversations with my classmates.
 Practical work experience in the Green Banking Unit under the Risk
Management Division of the bank.
 Relevant files as instructed by the officers concerned.
 Informal conversation with the bankers.
Secondary Sources:
 Quarterly Reports of Bangladesh Bank about Green Banking.
 Annual Report of the Janata Bank Limited 2017.
 Reports published by Bangladesh Bank.
 Some national & international journals about Green Banking.

1.5 Limitations of the study:1

Almost every research work has to face some limitations in its completion. Limitations of a study
are those issues that if analyzed could be more helpful for the study. This internship report is not
also out of limitations. For the purpose of acquiring data to prepare this report I faced some
constraints that are listed below:

 Organizations maintain strict confidentiality to give financial information.

 Proper understanding of these matters needs proper and sufficient time to analyze, 3
months isn't enough time to understand it properly.
 The difficulty started when finding the information from the respective employee and
seniors of the organization. They are bound to those ties because of legal agreements of
their job.
 Non-availability of the most recent statistical data.
 The employee of the organization did not want to disclose enough information to the
interns or any other outsiders; they were committed to their agreement.
 The lacking experience that makes a huge chance of having so many mistakes on report
though I am trying my level best to mitigate those erasers.

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  The financial projection of this report is totally estimated base and for this it cannot
match with the original one.
 Another basic limitation is not getting enough time and making a proper report based on
such a topic.

CHAPTER 2: AN OVERVIEW OF JANATA BANK LIMITED

2.1 Brief History of Janata Bank Limited:

Background:With the emergence of Bangladesh as an independent, sovereign state in 1971
after a devastating nine-month war against the West Pakistani occupation army, a war, full of
blood and tears, trauma and pain of millions of our beloved ones, the legacy of rebuilding the
already broken financial base of the country was felt as an urgent call of the day against a
collapsed economic reality of a newly born state.[CITATION Jan19 \l 1033 ]

Inception:In this backdrop, in order to rebuild the country’s economy, measures had been taken to
merge a number of banks previously operated in this region and make new banks and this
initiatives led to formation of Janata Bank in 1972 by combining the erstwhile United
BankLimited and Union Bank Limited under the Banks Nationalization Order (President’s Order
No. 26) Of 1972. [CITATION Jan19 \l 1033 ].

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Corporatization: On 15 November 2007 Janata Bank got registered with the Joint Stock of
Registrars and restructured it as a public limited company with the name Janata Bank Limited.
[CITATION Jan19 \l 1033 ]

Round up: Including 4 overseas branches in United Arab Emirates Janata Bank runs its business
with 912 branches across the country having a big family of around 12,391 (As on 26.04.2018)
employees with its head office located at JanataBhaban at Motijheel C/A, the heart of the capital
city, Dhaka.

At the end of 2017, the Bank held Deposit BDT 649441 million, Advance BDT 459580 million
with Authorized capital BDT 30,000 million and Paid-up Capital BDT 19,140 million.

Janata Bank Limited, a corporate body trusted over the years, the 2nd largest (in respect of
Deposits/Assets) commercial bank in Bangladesh, has been playing pivotal role in overall
financial activities of the country and is possessing a long heritage of discharging laudable
services to the society since her embankment immediately after the emergence of this verdant
rich alluvial soil as a sovereign, independent state. [CITATION Jan19 \l 1033 ]

2.2. Janata Bank Limited (JBL) at a glance:

Janata Bank Limited, one of the state-owned commercial banks in Bangladesh, has an authorized
capital of BDT.30000.00 million (Approx. US$ 360.0144058 million), paid-up capital Tk.
49889.66 million, foreign remittance of Tk. 9008.00 million. The Bank has a total asset of Tk.
778603.91 million as of 31st December 2016. Immediately after the emergence of Bangladesh
in1971, the erstwhile United Bank Limited and Union BankLimited were merged and renamed
as Janata Bank. 15th November 2007 the bank has been corporatized and renamed Janata Bank
Limited.Janata Bank Limited currently operates through 912branches including 4 overseas
branches in UnitedArab Emirates. It is linked with 1239 foreign correspondents all over the
world.The Bank employs 13188 personnel.The mission of the bank is to actively participate in
the socio-economic development of the nation by operating a commercially sound banking
organization,providing credits to viable borrowers, efficiently delivered and competitively
priced, simultaneously protecting depositors' funds and providing a satisfactory return on equity
to the owners The Board of Directors is composed of 1o (ten) 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.

2.3 Branches of Janata Bank Limited

Table-1: Branches of Janata Bank

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 SL Category Branches

01 Local Office 01

02 Corporate-1 Branch 28

03 Corporate-2 Branch 77

04 Overseas Branch 04

05 Grade-1 Branch 209

06 Grade-2 Branch 225

07 Grade-3 Branch 275

08 Grade-4 Branch 92

Total 912

2.4 Vision:
To become the effective largest commercial bank in Bangladesh to support the socio-economic
development of the country and to be a leading bank in South Asia. [CITATION Jan19 \l 1033 ]

2.5 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.[CITATION Jan19 \l 1033 ]

2.4 Core Values:

Core values of JBL are the key to success in their professional sectors, those are:-
 Diversity.
 Professionalism.
 Accountability.
 Integrity.
 Growth.
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  Dignity.

2.5 Products of Janata Bank Limited:

Products of Janata Bank Limited that’s given below in the tabular format:

Table-2: Products of JBL.(Author’s Creation)

Deposits

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 Current & Call Deposits Savings Bank Deposits
• Current Deposit • Savings Bank Deposit
• Call Deposit •Savings Deposit from the foreign remittance
• Deposit in Foreign Currency • Q-Cash Deposit
• Resident Foreign Currency Deposit • NRB FC Deposit
• Deposits in FC (WES) • School Banking Deposit
• Convertible Taka A/C (D) Term Deposits
Monthly Scheme Deposits • Fixed Deposit
• Deposit Pension Scheme • JB Double Benefit Scheme
• JB Savings Pension Scheme • JB Monthly Benefit Scheme
• Medical Deposit Scheme • Retirement Savings Scheme
• Education Deposit Scheme • JBL Retirement Savings Scheme
• GhoreGhoreSanchay • Continuous Benefit Account
• JB Monthly Savings Scheme Special Notice Deposit
• JB Special Deposit Scheme • Special Notice Deposit
• JB Monthly AmanatProkalpa • Convertible Taka A/C (SND)

Sources:(Janata Bank Ltd, 2017)

Loans & Advances of Janata Bank Limited

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 Term Loan Specialized Loan Program
• Industrial Credit (IC) • Cyber Cafe
• Housing Building Loan (General & • Service holders Loan
Commercial) • Doctor's Loan Scheme
• Agro-based Industry/Project Loan • Special Credit Program for Women
• Shipyard loan Entrepreneurs
• Loan for Overseas Employment
• Consumer Credit Micro & Cottage industries loan
• Dairy/Poultry/Fish Culture
Small and Medium Enterprise Loan • Loan for Handicrafts/Disabled People
• Service Sector Loan • NGO linkage loan
• Trading Sector Loan • Weavers’ Credit
• Manufacturing Sector Loan • Swanirvar Loan

Continuous Loan Import & Export Finance

• Cash Credit (Hypo) • Loan Against Imported Merchandise (LIM)
• Cash Credit (Pledge) • Inland Bill Purchase (IBP)
• Export Cash Credit • Loan Against Trust Receipt (LTR)
• Secured Overdraft (SOD) • Payment Against Document (PAD)
• Packing Credit (PC)
Rural & Agro Credit • Local/Foreign Bills Purchased (FBP)
• Crop Loan • Loan Against Export Development
• Fishery Loan Fund(EDF)
• Animal Husbandry Loan • Advance Against Cash Incentive (Subsidy,
• Agricultural Machineries Loan Assistance)
• Rural Transport Loan
• Flower cultivation Letter of Guarantee
• Advance Payment Guarantee
Poverty Alleviation Program • Bid Bond
• Supervised Credit Program • Performance Guarantee
• Small Farmers & Landless Laborers • Shipping Guarantee
• Self-employment Scheme
• Family-Based Micro Credit Letter of Credit
• Letter of Credit - at Sight
Other Credit Program • Letter of Credit – Usance
• Transport • Back to Back L/C
• Loan to Diagnostic Centers
• Loan to Travel Agencies
• Loan for Salt Production

Loans & Advances of Janata Bank Limited

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 Term Loan Specialized Loan Program
• Industrial Credit (IC) • Cyber Cafe
• Housing Building Loan (General & • Service holders Loan
Commercial) • Doctor's Loan Scheme
• Agro-based Industry/Project Loan • Special Credit Program for Women
• Shipyard loan Entrepreneurs
• Loan for Overseas Employment
• Consumer Credit Micro & Cottage industries loan
• Dairy/Poultry/Fish Culture
Small and Medium Enterprise Loan • Loan for Handicrafts/Disabled People
• Service Sector Loan • NGO linkage loan
• Trading Sector Loan • Weavers’ Credit
• Manufacturing Sector Loan • Swanirvar Loan

Continuous Loan Import & Export Finance

• Cash Credit (Hypo) • Loan Against Imported Merchandise (LIM)
• Cash Credit (Pledge) • Inland Bill Purchase (IBP)
• Export Cash Credit • Loan Against Trust Receipt (LTR)
• Secured Overdraft (SOD) • Payment Against Document (PAD)
• Packing Credit (PC)
Rural & Agro Credit • Local/Foreign Bills Purchased (FBP)
• Crop Loan • Loan Against Export Development
• Fishery Loan Fund(EDF)
• Animal Husbandry Loan • Advance Against Cash Incentive (Subsidy,
• Agricultural Machineries Loan Assistance)
• Rural Transport Loan
• Flower cultivation Letter of Guarantee
• Advance Payment Guarantee
Poverty Alleviation Program • Bid Bond
• Supervised Credit Program • Performance Guarantee
• Small Farmers & Landless Laborers • Shipping Guarantee
• Self-employment Scheme
• Family-Based Micro Credit Letter of Credit
• Letter of Credit - at Sight
Other Credit Program • Letter of Credit – Usance
• Transport • Back to Back L/C
• Loan to Diagnostic Centers
• Loan to Travel Agencies

Loans & Advances of Janata Bank Limited

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 Term Loan Specialized Loan Program
• Industrial Credit (IC) • Cyber Cafe
• Housing Building Loan (General & • Service holders Loan
Commercial) • Doctor's Loan Scheme
• Agro-based Industry/Project Loan • Special Credit Program for Women
• Shipyard loan Entrepreneurs
• Loan for Overseas Employment
• Consumer Credit Micro & Cottage industries loan
• Dairy/Poultry/Fish Culture
Small and Medium Enterprise Loan • Loan for Handicrafts/Disabled People
• Service Sector Loan • NGO linkage loan
• Trading Sector Loan • Weavers’ Credit
• Manufacturing Sector Loan • Swanirvar Loan

Continuous Loan Import & Export Finance

• Cash Credit (Hypo) • Loan Against Imported Merchandise (LIM)
• Cash Credit (Pledge) • Inland Bill Purchase (IBP)
• Export Cash Credit • Loan Against Trust Receipt (LTR)
• Secured Overdraft (SOD) • Payment Against Document (PAD)
• Packing Credit (PC)
Rural & Agro Credit • Local/Foreign Bills Purchased (FBP)
• Crop Loan • Loan Against Export Development
• Fishery Loan Fund(EDF)
• Animal Husbandry Loan • Advance Against Cash Incentive (Subsidy,
• Agricultural Machineries Loan Assistance
• Rural Transport Loan
• Flower cultivation

Poverty Alleviation Program

• Supervised Credit Program
• Small Farmers & Landless Laborers
• Self-employment Scheme
• Family-Based Micro Credit

Other Credit Program

• Transport
• Loan to Diagnostic Centers
• Loan to Travel Agencies

2.6 Services of Janata Bank Limited:

Table-3: Services of JBL. (Author’s Creation)

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 Services
Financial Services (Inland Remittance) Utility Services
• Demand Draft (DD) • Gas Bills Collection
• Telephonic Transfer (TT) • Electricity Bills Collection
• Mail Transfer (MT) • Telephone Bills Collection
• JB remittance payment system • Water/Sewerage Bills Collection
(Deposit/withdrawal from any branch) • Municipal Holding Tax Collection
• JB PIN cash System • Port Bill Collection
• Land Rent Collection
Financial Services (Foreign Remittance)
• Online Speedy Remittance Welfare Service
• Maintaining NRT Account • Payment of Non- Govt. Teachers’ Salaries
• Foreign MT •Payment of Primary and Secondary Girl
• Foreign Remittance Students Stipend
• Foreign Demand Draft • Payment of Army Pension/Civil Pension
• Collection of Draft, Cheque, TC • Payment of Widows, Divorcees, and
• Foreign Currency Endorsement Destitute Women Allowances
• Payment of Old-age/Disabled Allowances
Other Financial Services • Issuance of Television License
• Pay Order • Payment of Sanchayapatra
• Pay Slip
• Security Deposit Receipt (SDR) Other Service
• SMS banking
Service to the Government •Foreign Currency Buying and Selling
• Sale of Prize Bond •Bangladesh Electronic Fund Transfer
• Sale of Wage Earner Bond (WEB) Network(BEFTN)
• Sale of Sanchayapatra (SP) • Bangladesh Automated Clearing House
• VAT collection (BACH)
• Tax collection • Debit Card Service
• Excise duty collection • Credit Card Service

ATM Service Customer Care

• Cash withdrawal • Help/Information Desk
• Balance inquiry • Inquiry Desk
• Mini statement of accounts • Counseling
• Point of Sale (POS)
• Mobile recharge
• Tax payment
Sources:(Janata Bank Ltd, 2017)

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2.7 Organizational Structure:
Figure-1: Organizational Structure of JBL.

Sources: (Janata Bank Ltd, 2017)

2.8 Purpose of Janata Bank Limited:

There are few purposes of Janata bank; some of those are given below.

 Making profit: Each and every organization always wants to profit and this is their first
priority & Janata Bank does so and their first and foremost way to earn profit by
collecting deposits from the customer and lending money through interest and that will
count as an income and investing it to another area.[CITATION Jan19 \l 1033 ]

 Providing service and relation development: Making a good relationship with client
bank make financial transactions.[CITATION Jan19 \l 1033 ]

 Collecting more deposit and money lending: Without depositing money and by that
make transactions make Bank worthiness. Janata bank always tries to collect more
deposits by collecting customer’s money.[CITATION Jan19 \l 1033 ]

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  Flourishing money flowing: Janata Bank increasing their flow of money by replacing
currency by using a different medium like check pay order bank draft letter of credit etc.
while doing transactions and thus mainly increases the flow of currency for a bank.
[CITATION Jan19 \l 1033 ]

Social Purposes:

Social purposes for making the environment healthy so that people in the country make their
life beautiful. These are:

 Creating savings: Janata Bank always offers different kind of savings, like school
banking and other different varieties of savings that make them save for future and also
the interest are more in Janata Bank for saving more days longer than basically
emphasizing customer to deposit money over time.[CITATION Jan19 \l 1033 ]

 Formation of capital: Collecting the savings from the customers that mainly the
formation of capital.[CITATION Jan19 \l 1033 ]

 Ensuring safety: Client always make money by working hard and they save it for future
and they always think whether is the money safe it or not and Janata Bank always ensure
it for their valuable client.[CITATION Jan19 \l 1033 ]
20
 Investment and Industrialization: Janata Bank has some short, intermediate and long
term investments through these investments and tries to make profit for industrialization.
In the country.[CITATION Jan19 \l 1033 ]

 Employment facility: Every bank makes profit whether their employee treated in a good
way or not but JanataBank always tries to satisfy their employee first and also give them
bonus and other facilities to make them enthusiastic about the work. [CITATION Jan19 \l
1033 ]

26 | P a g e
2.9 Function of Janata Bank Limited as a Commercial Bank:

Figure-2: Function of Janata Bank Limited. (Author’s Creation)

Function of Janata Bank Limited as a Commercial Bank

Collecting deposit,Lendingloan,
Honoring cheque ,Creating
General medium ofexchange, Discounting
Function bills, Transferring
money etc.

Creation ofsavings &

Development Formation of capital helps
Export& Import business,
Function Investment in development

Function of Janata
Bank Limited
Receive & payment as
therepresentative of
Representative clients,selling of share.
Function

Transaction of foreign
Service Currencies, information
Sharing consulting and
Function Others service

Sources:(Janata Bank Ltd, 2017)

27 | P a g e
2.10 Corporate Governance of Janata Bank Limited:

The bank’s Board of Directors and Management make relentless efforts to ensure meaningful
corporate governance in credit administration, financial management, internal audit and control
of wasteful expenditures, etc. The bank has instituted requisite tools and techniques in this
regard[CITATION Jan19 \l 1033 ]:

 A well-structured organ gram assigning duties and responsibilities of the departments and
personnel.
 The bank is endowed under company law with its Board of Directors.
 Strong internal control & compliance system to oversee lending, administrative, financial
and other operational matters.
 Effective internal and external information flows.
 Policy-based recruitment, promotion, transfer, and performance-based incentives with
strict observance of transparency.

The bank also makes sure that the guidelines and regulations issued by Bangladesh Bank and
Bangladesh Securities and Exchange Commission (BSEC) are properly followed. For ensuring
corporate governance there are Management Committee (MAN-COM), Asset Liability
Committee (ALCO), Credit Committee, Executive Risk Management Committee, Disciplinary
Action Committee, Standing Committee, Interest Exemption Committee, Research and Planning
Committee (RPC), Recruitment Review Committee, and a high level committee on
implementation of online banking activities.

28 | P a g e
 CHAPTER 3: LITERATURE REVIEW

3.1 About Green Banking:

Global warming, which is one of the most burnings & discussed issues, has the worst impact on
the climate of the planet as a whole. Due to unusual weather patterns, rising greenhouse gas,
declining air quality, etc. society demands that businesses also take responsibility for
safeguarding the planet. Green Banking is one of the revolutionary concepts in today’s business
world which basically refers to sustainable banking, socially responsible banking or ethical
banking that endorse environment-friendly practices and reducing carbon footprint from banking
activities. The main objective of Green Banking is to ensure the use of organizational resources
in favor of the environment and society. Green banking as a concept is proactive and smart way
of thinking with a vision for future sustainability of our only Spaceship earth. So in a very
specific way-Green Banking means banking practices that foster environmentally responsible
financing practices as well as using environmentally sustainable internal processes[CITATION
Raa15 \l 1033 ].Green Banking can be viewed from two different approaches as follows:

Transformation of Internal Operation:

Firstly, banks can adopt appropriate ways to utilize renewable energy sources, automation and
other measures to minimize carbon usage in banking activities.

Environmentally Responsible Financing Policy:

Secondly, banks should consider environmental issues with the utmost importance while
financing or investing in a project.

3.2Assessmentof theConceptofGreen Banking:

Although the theoretical idea of Green Banking is not very old; some practices can be traced
from ancient banking & financial practices. During the 16th century religious ethics, the
environment, and the local community provided the main framework for both life and economy
and therefore influence businesses and the financial sector as well. Besides, during the 19th-
century credit unions and financial cooperatives worked on the criteria that were used as
sustainability criteria later. These banks used some of the principles of the credit unions and co-
operatives but added an ethical perspective to their business. Because of higher energy and waste
management prices it was worthwhile for a service sector as well to be eco-efficient in order to
reduce costs. At about the same time new environmental regulations influenced the responsibility
of business for its environmental impact. After mainly managing costs and risks connected with
environmental issues the financial sector began to explore business opportunities connected with
sustainable development as well. Weber also stated that at the beginning of 1990 the first
sustainability mutual funds, indices, and other financial products and services were launched.

29 | P a g e
Since then their market share is increasing. They changed the landscape of financial products and
services as they re-integrated non-financial issues like the environment or sustainability into
financial decision making processes and product development. Weber again explained that
another event that influenced the financial sector to consider environmental responsibility was
the launch of the Kyoto Protocol on climate change mitigation. Because financial instruments
were needed to reduce carbon emissions, the financial sector engaged in creating products and
services around carbon reduction, carbon offsets, and financing projects under the
Kyoto Protocol mechanism. However, today the view about social or environmental
responsibility in changing from managing environmental risks into creating positive impacts on
sustainable development by using different financial products and services. This new view is
reflected in the Global Impact Investment Network (GIIN) and in the Global Alliance for
Banking on Values (GABV) both of which emphasize the positive role that the financial industry
can play in fostering sustainable development.[ CITATION Kau11 \l 1033 ]

3.3Elementsof Green Banking:

The scope of Green Banking is huge- leading to the way of Green Economy in a broad sense.
So determining all the elements of Green Banking is a difficult task. However, the following
can be a short checklist of the elements of Green Banking. [CITATION Quo19 \l 1033 ]

 Online banking
 Formulation of Green Banking Policy
 Green Banking Committee
 Green Banking Unit
 Budget Allocation
 Green Financing
 Online Banking
 Green Marketing
 Awareness and Training
 Creation of Climate Risk Fund/CSR activities
 Formation of Sustainable Finance Unit.

3.4 Challenges TowardsGreen Banking:

Although the concept of Green Bank is considered as a sustainability issue it is true that
achieving the actual response of Green Banking initiatives is associated with some major
challenges like:[CITATION Kan14 \l 1033 ]

Diversification Matters:
30 | P a g e
Green banks will be screening their customers and naturally, they’ll be limiting and restricting
their business to those entities that qualify. With a smaller pool of customers, they’ll
automatically have a smaller profit base to support them. If they focus their loans on certain
industries, they open themselves up to being much more vulnerable to economic shifts.
[CITATION Kan14 \l 1033 ]

These Banks Are Still Startups:

Apparently, it takes 3 to 4 years for a typical bank to start making money. Many green banks in
business today are very new and are still in startup mode. It doesn’t help that these banks are
trying to get their footing during a recession. [ CITATION Kan14 \l 1033 ]

Banks Are “Specialized”:

Again, while the main goal of a green bank is to do good by supporting those who are taking care
of the environment, the question here is just how much money is there in these businesses and in
the eco-friendly industry? Saving the environment does not necessarily equate to “making a
profit”. Hopefully, though, this premise is proven wrong in this case and that green banks prove
that they can survive, even as they face restrictive requirements for doing business.[ CITATION
Kan14 \l 1033 ]

Operating Expenses And Costs Are Higher:

Green banks require specialized talent, skills, and expertise as well, due to the kind of customers
they are servicing. Employees, such as loan officers, need to have additional background and
experience in dealing with green businesses and consumers. Plus, giving breaks to such clients
via discounted loan rates can eat at their profit margins.[ CITATION Kan14 \l 1033 ]

Reputation Risk:
In all likelihood, due to growing awareness about environment safety, banking institutions are
more prone to lose their reputations if they are involved in big projects, which are viewed as
socially and environmentally damaging. [ CITATION Kan14 \l 1033 ]

3.5Global Initiatives Of Green Banking:

Environmental responsibility has always achieved importance from the international community.
During the early 1990s, there had been a growing concern about the environmental management
system because of increasing energy prices and new environmental regulations.
However, from that time financial institutions have been trying to mitigate social and
environmental risk issues by introducing different environmental-friendly policies & operations.
Today the financial sector has begun to explore business opportunities connected with
sustainable development one of the results of which is the concept of Green Banking. According
to Pravankar & Nayak, at the beginning of 1990 the first sustainability mutual funds, indices, and

31 | P a g e
other financial products and services were launched.[CITATION Pra08 \l 1033 ]

Development of UNEP:
During the early 1990s, the United Nations Development Program (UNEP) was launched which
is now known as UNEP Finance Initiatives. The objective of this initiative was to integrate
environmental considerations into the regular business operations, asset management, and other
business decisions of the banks.[CITATION Pra08 \l 1033 ]

Initiatives Taken By Renowned International Organizations:

Pravankar& Nayak also mentioned that during the year 1991 to 2002 some renowned
international organizations had taken different initiatives regarding environment-friendly
business practices like:
Environmental unit:
IFC established an environmental unit in 1991 to review environmental assessment of each
project.[CITATION Pra08 \l 1033 ]
Reputational risk management:
Netherland-based ABN-Amro Bank has developed certain Reputational Risk Management
(RRM) policies to identify, assess and manage the presence of nonfinancial issues within its
business engagements.[CITATION Pra08 \l 1033 ]

Development of Equator Principles:

All these concerns for sustainable finance or green finance have compelled the banking
institutions to devise a common and coherent set of environmental and social policies and
guidelines that can be used to evaluate the projects. Then a small group of banks along with IFC
came together to initiate the process of designing the common guidelines in October 2002 and
came up with guidelines in June 2003 that are known as Equator Principles with 10 leading
commercial banks adopting these voluntary sets of principles.[CITATION Ama05 \l 1033 ]

The Equator Principles:

The Equator Principles(EPs) is a credit risk management framework for determining, assessing
and managing environmental and social risk in Project Finance transactions. It is based on the
International Finance Corporation Performance Standards on social and environmental
sustainability and on the guidelines. The Equator Principles 2006- There are 10 broad principles
under the EP framework. Eventually, these principles have become the industry standard for
environmental and social risk management and financial institutions, clients/project sponsors,
other financial institutions, and even some industry bodies refer to the EPs as good practice.
Currently, 79 adopting financial institutions (77 EPFIs and 2 Associates) in 32 countries have
officially adopted the EPs, covering over 70 percent of international Project Finance debt in
emerging markets.[CITATION Ama05 \l 1033 ]

32 | P a g e
CHAPTER 4: GREEN BANKING PRACTICE IN BANGLADESH

The economic development of any country is inextricably linked with environmental issues
because activities of financial institutions may boost wealth creation as well as environmental
degradation. Bangladesh is identified by climate change experts as being among the countries
more severely challenged by climate change threat with correspondingly high urgency of
preparedness with mitigating and adaptive responses. The government and the central bank of
Bangladesh are fully conscious of this issue and have played a proactive role in this regard. As
being realized that bank as a responsible financial institution has a significant role to play in
these game-changing developments, Bangladesh Bank, the central bank of Bangladesh has taken
the first initiative to make activities of the financial institutions of Bangladesh more
environmentally responsible at the beginning of the year 2011. Green Banking as a concept of
sustainable banking practices was formally introduced in Bangladesh in February 2011 with the
development of an indicative Green Banking Guideline for Banks and Financial Institutions by
Bangladesh Bank. The main objective of this guideline is to give detail and indicative advice to
all the commercial banks of Bangladesh to adopt environment-friendly financing policies as well
as to take appropriate initiatives to make internal operations more energy-efficient and
environmentally conscious.[ CITATION Hoq19 \l 1033 ]

4.1 Rules & Regulations Governing Green Banking In Bangladesh:

With a view to encouraging sustainable development in Bangladesh, the government of
Bangladesh has formulated two important documents namely the Environmental Conservation
Act 1995 and the Environmental Conservation Rules 1997. These two documents basically make
the ground rules for Green Banking in Bangladesh. In January year 2011, Bangladesh Bank as a
regulatory body in the financial sector of Bangladesh had formulated the Environmental Risk
Management Guidelines for Banks and Financial Institutions. The ERM guideline basically
represents structured formats of addressing environmental risks in project financing and also
provides standards in this regard. Besides, on February 27, 2011 Bangladesh Bank formulated
the Green Banking Policy Guidelines that provide a standard format for the commercial banks in
Bangladesh to develop their own Green Banking Policy. The Green Banking practices in
Bangladesh can be viewed from three perspectives:[ CITATION Hoq19 \l 1033 ]

1. Initiatives taken by Bangladesh Bank,

2. Initiatives taken by Government &
3. Initiatives taken by other commercial banks

33 | P a g e
4.2 Initiatives Taken By Bangladesh Bank:
Bangladesh Bank is the first central bank in the world that has taken real initiatives according to
a definite agenda in its vision and mission to play a specific role in Green Banking. With the
different initiatives of in-house green activities, the authority has developed an indicative Green
Banking Policy on February 27, 2011 which aims to provide a detailed guideline to all the
commercial banks to adopt Green Banking policy. The policy is to be rolled out in the following
three phases:[ CITATION Hoq19 \l 1033 ]

Phase-1(By December 31, 2011)

 Policy Formulation & Governance
 Incorporation of environmental risk in core risk management
 Initiating in-house environment management
 Introducing Green Finance
 Creation of climate risk fund
 Introducing green marketing
 Online banking
 Supporting employee raining, consumer awareness, and green event
 Reporting green banking practices

Phase-2(By December 31, 2012)

 Sector-specific environmental policy
 Green strategic planning
 Setting up green branches
 Improved in-house environment
 Formulation of bank-specific environment risk management plan and guidance
 Rigorous plan to educate clients
 Disclosure and reporting of green banking activities
Phase-3(By December 31, 2013)
 Designing and introducing innovative products
 The report in standard format with external verification
Sources: (Hoque, et al., 2019)

Besides developing a formal guideline regarding Green Banking practices, Bangladesh Bank has
also launched a refinance program of Taka 2 billion for different types of Green financing like
 Solar Irrigation Pump Station,
 Solar Home System, Bio Gas Plant, ETP, HHK,
 Solar PV module assembling plant.

4.3 Initiatives Taken By Government:

The government of Bangladesh has already invested USD 10 billion over the last three decades
to make the country climate resilient and less vulnerable to disaster. According to Morshed,
Rubayat&Singha over the past three fiscal years (FY2009-10 to FY 2011-12) the government
has allocated USD 300 million under the following two specialized funds regarding sustainable
development:[CITATION Kho12 \l 1033 ]

34 | P a g e
 Bangladesh Climate Change Trust Fund Bangladesh Climate Change Trust Fund
(FCCTF) (FCCTF)
 Established in 2009  Established in 2010 with funds
 66% of the fund is being used for the provided by development partners and
implementation of action plan and managed by Govt.
34% is held in reserve to tackle  Fiduciary support provided by WB,
emergency situation UK & EU.
 90% of the fund is being spent by
different ministries & 10% by PKSF
to support NGO initiatives

4.4 Initiatives Taken By Commercial Banks and Financial Institutions:

According to Morshed, Rubayat&Singha, with some formal guidelines of Bangladesh Bank as
well as government, the commercial banks of Bangladesh have also come up with some
remarkable initiatives regarding green banking like:[CITATION Kho12 \l 1033 ]

Policy Formulation and Governance Climate Risk Fund

Budget Allocation Green Marketing
Green Banking Unit/Cell/Desk Green Banking
Incorporation of Environment Risk in Core Branches powered by Solar Energy
Risk Management(CRM)
Bank’s In-House Activities Improved In-House Environment
Management
Green Finance Employee Training, Customer Awareness,
and Green event

Policy Formulation and Governance:

All scheduled banks have formed their own Green Banking Policy Guidelines. Except for
Shimanto Bank Ltd. All scheduled banks have formed their own Green Office Guide. All the FIs
except Lankan Alliance Finance Ltd (Scheduled from June 20, 2017 through DFIM Circular no
03/2017) have also formed their own Green Banking Policy Guidelines[CITATION Ban18 \l 1033 ].

Allocation and Utilization of Fund for Green Banking Activities:

The snapshot of sanction and disbursement of total finance along with green finance by banks
and FIs during April-June, 2018 quarter is shown in Table-1. The quarterly shift from March
2018 to June 2018 shreds of evidence increasing trend in case of Green Finance (Figure-1). But
the utilization of Climate risk fund is decreasing significantly during this quarter. 190.92 And
0.5 million takas have been utilized as grant and concessional loans respectively from this fund.
41 banks out of 57 and 17 FIs out of 34 have conducted environmental risk rating in the
reporting quarter. In this quarter number of projects rated is 13,077; number of rated projects
financed is 14,263 and amount disbursed in rated projects is 839,659.22 million takas. The

35 | P a g e
quarterly shift of ESRR by banks and FIs is showing a bit decreasing trend (Figure-2) [CITATION
Ban18 \l 1033 ].

Table-4: Sanction & Disbursement of Funded Loan(Author’s Creation)

Total Finance in April-June, 2018 (in million
Taka) Green Finance in April-June, 2018(in million
Taka)

Type of Sanctioned Disbursed Sanctioned

Bank/FI Disbursed

SOCBs 174,556.69 180,008.13 162.38 163.48

(06)
SDBs 33,225.23 34,984.64 1.20 1.60
(02)
PCBs 1,674,789.13 1,569,680.77 30,404.86 24,968.11
(40)
FCBs 294,262.64 344,530.70 451.87 105.66
(09)
Total 2,176,833.68 2,129,204.24 31,020.31 25,238.85
FIs (34) 122,307.89 113,592.69 1,800.23 998.90
Grand 2,299,141.57 2,242,796.94 32,820.54 26,237.75
Total
Sources:(Bangladesh Bank, 2018)
Figure-3: Quarterly Comparison of Utilization of Fund (Author’s Creation)

Green Finance Climate Risk Fund

Green Finance Climate Risk Fund

26500 700
26000
25500 600
25000 500
24500 400
24000
23500 300
23000 200
22500
22000 100
21500 0
March,2018 March,2018
June,2018 June,2018

Sources:(Bangladesh Bank, 2018)

36 | P a g e
 Table-5: Utilization Of Climate Risk Fund (In Million Taka).(Author’s Creation)

Type of Bank/FI Event Project Concessional Loan

SOCBs (06) 0.00 0.00 0.00

SDBs (02) 0.00 0.00 0.00

PCBs (40) 190.42 0.00 0.50

FCBs (09) 0.00 0.50 0.00

Total 190.42 0.50 0.50

FIs (34) 0.00 0.00 0.00

Grand Total 190.42 0.50 0.50

Sources:(Bangladesh Bank, 2018)

Environmental Risk Rating (ERR):

Table-6: Environmental & Social Risk Rating. (Author’s Creation)

Type of Bank/FI No. of Projects No. of Rated Amount
Rated Projects Financed disbursed in
Rated projects
(in million
takas)
SOCBs (06) 410 427 13155.50
SDBs (02) 0 0 0.00
PCBs (40) 11511 12754 779422.11
FCBs (09) 488 457 27450.70
Total 12409 13638 820028.31
FIs (34) 668 625 19630.91
Grand Total 13077 14263 839659.22
Sources:(Bangladesh Bank, 2018)

37 | P a g e
 Figure-4: Quarterly Comparison of Environmental Risk Rating. (Author’s Creation)

No. of Project Rated No. of Projects Finance after Rating

No. of Projects Finance after Rating
No. of Project Rated

16000

30000 15500
25000 15000
20000
14500
15000
14000
10000
5000 13500

0 13000
March,2018 March,2018
June,2018 June,2018

Amount Disbursed in Rated Project

Amount Disbursed in Rated Project

900000
890000
880000
870000
Sources:(Bangladesh Bank, 2018)
860000
850000 In-house Environment Management:
840000
830000
820000
810000 Table-7: Solar Powered Branches And ATM/SME Units. (Author’s Creation)
March,2018
June,2018
Type of Bank/FI No. of Branches No. of branches No. of ATM/SME
powered by Solar units powered by
Energy Solar Energy
SOCBs (06) 3696 71 2

SDBs (02) 1412 5 0

PCBs (40) 4882 461 96

FCBs (09) 68 6 5

Total 10058 543 103

38 | P a g e
 FIs (34) 264 3 0

Grand Total 10322 535 103

Sources: (Bangladesh Bank, 2018)

Green Finance:
31 Banks out of 57 and 10 FIs out of 33 have had exposure in green finance in the reporting
quarter. The total amount invested as green finance has been Tk. 26,237.75 million in April-June,
2018 quarter. Green financing is on upward mode in this quarter, total sanction of green finance
by Banks and FIs is 1.43% of sanction of total finance and total disbursement of green finance is
1.17% of total funded loan disbursement. A brief picture of green finance by Banks and FIs is
shown in Table-5, Table-6, Figure-3 and Figure-4[CITATION Ban18 \l 1033 ]:

Table-8: Green Finance (in million Taka).(Author’s Creation)

Category of Green Finance

Renewable Energy Waste Alternative

Energy Efficiency Management Energy
Type of
Bank/FI

SOCBs 4.92 0.00 0.00 0.00

(06)
SDBs 1.20 0.30 0.00 0.00
(02)
PCBs 1,445.81 1,932.42 11,809.62 1.36
(40)
FCBs 105.66 0.00 0.00 0.00
(09)
Total 1,557.59 1,932.72 11,809.62 1.36
FIs (34) 330.36 100.30 245.10 0.00
Grand 1,887.95 2,033.02 12,054.72 1.36
Total

39 | P a g e
 Table-9: Green Finance (in million Taka)- Table Continued

Category of Green Finance

Recycling Green Brick Green Misc.

& Manufacturin Establishment
Recyclable g
Product
Type of
Bank/F
I

SOCBs 72.98 85.28 0.00 0.30

(06)
SDBs 0.00 0.00 0.00 0.10
(02)
PCBs 1,764.27 2,222.83 5,015.02 776.77
(40)
FCBs 0.00 0.00 0.00 0.00
(09)
Total 1,837.25 2,308.11 5,015.02 777.17
FIs (34) 22.10 204.24 86.80 10.00
Grand 1,859.35 2,512.35 5,101.83 787.17
Total
Sources: (Bangladesh Bank, 2018)

Table-10: Direct Green Finance as % of Total Finance(Author’s Creation)

Type of Bank/FI As % of Total Green Finance As % of Total Funded

Loan Disbursement
SOCBs (06) 0.09% 0.09%

SDBs (02) 0.00% 0.00%

PCBs (40) 1.82% 1.59%
FCBs (09) 0.15% 0.03%
Total 1.43% 1.19%
FIs (34) 1.47% 0.88%
Grand Total 1.43% 1.17%
Sources: (Bangladesh Bank, 2018)

Figure-5: Direct Green Finance as % of Total Funded Loan Disbursement. (Author’s Creation)

40 | P a g e
 Direct Finance As % of Total Funded Loan Disbursement

Direct
1.59%Finance As % of Total Funded Loan Disbursement
1.60%
1.40%
1.20% 1.19%
1.17%
1.00%
0.80% 0.88%
0.60%
0.40%
0.09%
0.20% 0.00%
0.00% 0.03%

Sources:(Bangladesh Bank, 2018)

Figure-6: Green Finance across All Categories. (Author's Creation)

Category of Green Finance

Renewable
Misc.
GreenEnergy
2%
2%
Establishment
13%
Green Brick
Manufacturin
g Recycling & Waste
Recyclable
16%
Alternative Management
Product
Energy
Energy 59%
2%
Efficiency
0%
5%

Renewable Energy Waste Management Energy Efficiency

Alternative Energy Recycling & Recyclable Product Green Brick Manufacturing
Green Establishment Misc.

Sources:(Bangladesh Bank, 2018)

Online Banking:
56 Banks out of 57 have at least one online branch and 46 banks have introduced internet
banking facilities up to June 2018. The steady situation (87.35% to 87.35%) has been observed

41 | P a g e
in the expansion of online branches (Figure-7). Internet banking facility has also been observed a
steady condition (2.20% to 2.19%) compared to that of previous quarter (Figure-7)[CITATION
Ban18 \l 1033 ].

Table-11: Automation towards Green Banking(on June 30, 2018).(Author’s Creation)

Type of No. of No. of No. of % of No. of % of Accounts

Bank Total Total Branches Online Accounts
Facilitated
Accounts Branches with online Branches Facilitated
coverage with Internet Internet
Banking
Banking
SOCBs 38,278,290 3696 3,670 99.30% 0 0.00%
(06)
SDBs (02) 11,966,273 1412 335 23.73% 0 0.00%
PCBs (40) 47,055,459 4882 4,713.00 96.54% 1,963,551 4.17%
FCBs (09) 379,460 68 68 170,948 45.05%
100.00%
Grand 97,679,482 10,058 8,786 87.35% 2,134,499 2.19%
Total
Sources: (Bangladesh Bank, 2018)

Figure-7: Quarterly Comparison of Online Banking. (Author’s Creation)

% of Online Branches Internet Banking

% of Online Branches Internet Banking

87.35% 3.00%

87.30% 2.50%
2.00%
87.25%
1.50%
87.20%
1.00%
87.15% 0.50%
87.10% 0.00%
March,2018 March,2018
June,2018 June,2018

Sources:(Bangladesh Bank, 2018)

Training, Promotion, and Disclosure:

32 Banks out of 57 have arranged 114 training programs concerning green banking where the
total number of participants was 3,860. On the other hand, 6 FIs out of 34 have arranged 6

42 | P a g e
training programs concerning green banking where total number of participants was 147. A
snapshot on training in April-June, 2018 quarter is given below:[CITATION Ban18 \l 1033 ]

Table-12: Training in April-June, 2018(Author’s Creation)

Type of Bank/FI No. of Programs No. of Employees No. of Customers

SOCBs (06) 11 270 0
SDBs (02) 7 206 0
PCBs (40) 336 5842 93
FCBs (09) 2 106 0
Total 356 6,424 93
FIs (34) 10 42 4
Grand Total 366 6466 97
Sources:(Bangladesh Bank, 2018)

Table-13: Major Green Banking Activities at a Glance in April-June, 2018 (Author’s

Creation):
Issue Bank FI
Number of banks/FIs 57 34
having sustainable Finance
unit
Number of banks/FIs 56 33
having green banking
policy
Number of banks/FIs 56 33
having green office guide
Number of environmental 12,409 668
risk-rated projects
Number of environmental 13,638 625
risk-rated projects and
financed
Amount disbursed against 820,028.31 19,630.91
rated projects (in million
Taka)
Number of solar-powered 543 3
Branches
Number of solar-powered 103 0
ATM/SME units
Online branches (as % of 87.35% N/A
total branches)
Amount disbursed as green 25,238.86 998.90
finance (in million Taka)

43 | P a g e
 Direct green finance as % 1.19% 0.88%
of the total funded loan
Disbursement
Amount utilized for 191.42 0.00
climate risk fund (in
million Taka)
Sources: (Bangladesh Bank, 2018)

CHAPTER 5: DATA ANALYSIS AND FINDINGS

5.1 Data Analysis on Green Banking at Janata Bank Limited:

Janata Bank Limited’s contribution to green banking from 2013-2017:
Janata Bank Limited provides loans every year in different areas. Janata Bank Limited conscious
about environments it’s contribution to green banking is increasing day by day. Some projects
are given below where Janata Bank Limited invests maximum amount of green banking budget
that is very useful for the environment and also the secondary data about contribution of those
projects from 2013 to 2017 that’s are given below for analyzing the contribution level of each
year.

Janata Bank Limited’s investment in HHK projects:

Janata Bank limited invested maximum amount in HHK projects in its early ages of practicing
green banking. HHK project refers to Hybrid Hoffman Kiln projects. The projects play a vital
role to protect the environment from carbon. The following graph shows the contribution of
JBL for the projects.

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 Table 14: Loans for HHK Project (in million). (Author’s Creation)

Year Number of Loans Amount of Loans

2013 4 771.08
2014 10 591.40
2015 15 154.58
2016 15 155.60
2017 16 150.35
Sources: (Janata Bank Ltd, 2017)

Figure-8: Investment in HHK project (Author’s Creation)

N umbe r O f Lo a ns A mo unt O f L o a ns Fo r H H K
Number of Loans Pr o je c ts(in Millio n)
18
Amount of Loans for HHK Projects(in
16 million)
14 900
12 800
10 700
600
8 500
6 400
4 300
200
2
100
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Sources: (Janata Bank Ltd, 2017)

Interpretation:
JBL’s investment for HHK projects in 2013 is significantly higher than the other years. The
amount was 771.08 million. In 2014, 2015, 2016 and 2017 the amounts are decreased but the
numbers of loans are increased. Year after year JBL loses its interest to invest in the project.

Janata Bank Limited’s investment in Biogas Plant:

The biogas plant is used in the place of wood as it produces gas from garbage and cow dung. We

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use the biogas plant to save the trees. JBL invests in biogas plants in every year. The following
graph shows the contribution of JBL in bio-gas plant.
Table 15: Loans for Biogas Plant (in million). (Author’s Creation)
Year Number of Amount of
Loans Loans
2013 21 1.67
2014 42 4.62
2015 55 10.65
2016 45 11.55
2017 61 12.21
Sources: (Janata Bank Ltd, 2017)

Figure-9: Investment in the biogas plant (Author’s Creation)

No. Of Lo ans For Bio -g a s Pla nt A mo unt O f Lo a ns Fo r Bio -g a s

Pla nt(in Millio n)
70

60 Amount of Loans for Bio-Gas Plant(in

million)
50
14
40
12
30 10
8
20 6
4
10
2
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Sources: (Janata Bank Ltd, 2017)

Interpretation:
JBL’s investment for biogas plants in 2017 is significantly higher than the other years. The
amount was 12.21 million. Both the number of loans and the number of loans are increased. Year
after year JBL shows positive interest to invest in the project.

Janata Bank Limited’s investment for Solar Panel:

A solar panel is a collection of solar cells. solar This is safe alternatives that can replace current
fossil fuels like coal and gas for the generation of electricity that produce air,water,and land
pollution. JBL invests in solar panels for protecting environment.The following graph shows the
contribution of JBL for the projects.

Table-16: Loans for Solar Panel. (Author’s Creation)

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 Year Number of Loans Amount of Loans
2013 31 2.39
2014 96 7.66
2015 186 5.83
2016 333 6.26
2017 365 6.68
A m o u n t O f L
Sources: (Janata Bank Ltd, 2017) o a n s F o r So la r Pa ne l(in
Millio n)
Figure-10: Investment in Solar Panel (Author’s Creation)

Amount of Loans for Solar Panel(in million)

No. Of Loans For Solar Panel

9
No. of Loans for Solar Panel 8
7
400 6
350 5
300 4
3
250
2
200 1
150 0
2013 2014 2015 2016 2017
100

50

0
2013 2014 2015 2016 2017

Sources: (Bangladesh Bank, 2018)

Interpretation:
The graphs show that the number of loans is increased from 2013 to 2017 remarkably. But the
highest amount of loans is given in the year 2014.

Janata Bank Limited’s loans for Bio-Fertilizer:

Biofertilizer helps to increase the quality of the soil by providing nutrients and the natural
environment in the rhizosphere. Janata Bank limited discourages to use chemical fertilizer by
giving loans in bio-fertilizer.

Table 17: Loans for Bio-Fertilizer (in million). (Author’s Creation)

Year Number of Amount of

Loans Loans
2014 24 1.19
2015 18 0.64
2016 33 1.78
2017 37 2.15

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 Sources:(Janata Bank Ltd, 2017)

Figure-11: Investment in bio-fertilizer (Author’s Creation)

No . Of Lo a ns Fo r Bio Fer tilize r

No. of Loans for Bio Fertilizer

40

35

30

25

20

15

10

0
2014 2015 2016 2017

A mo unt O f L o a ns Fo r B io Fe r tiliz e r

Amount of Loans for Bio Fertilizer

2.5

1.5

0.5

0
2014 2015 2016 2017

Sources:(Janata Bank Ltd, 2017)

Interpretation:
JBL gives the highest loans for this project in the year 2017. JBL shows positive interest in the
project.

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Janata Bank Limited’s number of ATM Booths:
The ATM represents a major reduction in the carbon footprint of distributing cash, by
substituting automated self-services for bank teller distribution and spreading automated bank
cash dispensing to convenient locations beyond bank branches.ATMs are environmentally
friendly and convenient self-service banking machines.

Table 18: Number of ATM Booths. (Author’s Creation)

Year Number of ATM Number of ATM

Booths(installed) Booths(shared
2013 14 3689
2014 15 4102
2015 31 4800
2016 41 4800
2017 64 5200
Sources: (Janata Bank Ltd, 2017)

Figure-12: Number of ATM booth (Author’s Creation)

Number Of ATM Booths(installed) Number Of ATM Booths(shared)

Number of ATM Booths(installed) Number of ATM Booths(shared)

70 6000

60 5000

50
4000
40
3000
30
2000
20

10 1000

0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Sources:[CITATION Jan19 \l 2117 ]

Interpretation:
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The table 18 and figure 12 show the number of ATM booths shared and installed are increasing.

Janata Bank Limited’s computerized branches and online branches:

Table 19: Number of online and computerize branches. (Author’s Creation)

Year Number of computerized Number of online branches

Branches
2013 897 42
2014 904 174
2015 908 503
2016 910 721
2017 915 768
Sources: (Janata Bank Ltd, 2017)

Figure-13: Number of Computerized branches (Author’s Creation)

N umbe r O f C o mpute r i z e d B r a nc he s
Number of computerized Branches
920 Sources:(Janata Bank Ltd, 2017)
915
Interpretation:
910 Figure 13 shows that the number of online and
computerize branches are increasing day by day
905
that is a positive response to green banking
900
practices of Janata Bank Limited.
895

890

885
2013 2014 2014 2016 2017

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5.2 Findings:
While working on Janata Bank Limited at Newmarket Branch, I have attained a newer kind of
experience. After collecting and analyzing data I have checked out some findings. These findings
are completely based on my personal view.
 The branch should concentrate more on using solar energy to save electricity.
 The Newmarket branch does not arrange a public or private conference for developing
sustainable environment.
 There is a shortage of ATM booths in major cities with proper solar energy backup.
 The bank does not maintain or record of the consumption of water, paper, electricity, etc.
at their offices and branches.
 The bank may prepare an inventory of the consumption of water, paper, electricity,
energy, etc. of the Offices and Branches.
 The bank does not encourage clients and business houses to comply with environmental
regulations.
Janata Bank is trying to set-up all of its branches according to green banking policies but they are
far from the proper practice.

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 CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS

6.1 Recommendations:
As a renowned public commercial bank in Bangladesh, the Janata Bank Limited has already
given much importance in balancing non-financial issues such as environmental and social issues
with financial priorities to demonstrate the characteristics of good corporate governance
throughout the bank. Up to the year 2019 the bank has made complementary progress and has
taken some real initiatives regarding Green Banking like: formulation of an active and
responsive Green Banking Cell (GBC), financing ETP projects, formulation of Green Office
Guide for in-house environment management, formulation of two Sector Specific Policies,
investment for installation of Solar Plant etc. However, since the idea of Green Banking is
getting new dimensions day by day and there is a good opportunity of the banks to link their
goodwill and image with their initiatives of Green Banking, I think JBL still has a long way to go
I also think that the Janata Bank Limited should focus on the following issues more in the
upcoming years to make a good position in this regard:

 Make regular adjustments and updates of the Green Banking Policies.

 Increase the exposure of Green Finance to new projects.

 The management committee should take necessary steps to circulate the principles of the
Green Office Guide to all the branches of the Janata Bank Limited.

 The management committee should take the necessary steps to develop new products or
services with environmental features.

 And finally, the bank should arrange more training and workshop programs to encourage
the employees to follow and foster the Green Banking Concept in their day to day
banking affairs.

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6.2 Conclusions:
Sustainable green environment policies are crucial for the people and the planet. Banks are
giving green loans and making enthusiastic people towards sustainable deposits, paperless
checking rewards, that create people so curious about green financing. For betterment of the
future green banking is getting spreading out all over the area. Bank and other financial
institutions can take some necessary steps with the help of government to make a good
environment for people. Using online banking, through technology doing banking activities, less
use of paperwork, less use of biogas, an eco-friendly way of doing banking activities will ensure
green banking. This type of training should be given to the employees so that they can give
advice to the stakeholders, industrialists, and also customers.

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