Final Prodip Internship Report

JATIYA KABI KAZI NAZRUL ISLAM UNIVERSITY
Internship report on “General Banking Activities & Financial Performance

Analysis of BASIC Bank limited”
Submitted to:
Professor Dr. Shohel Rana
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University
Submitted by:
Prodip Saha
Id: 18132607
Session: 2017-2018
Date of submission: 13th March, 2023
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“Dedicated
To
My Beloved”
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Letter of Transmittal
13th March, 2023

Subject: Submission of Internship Report.
Dear Sir,
I am a student of Finance and Banking department of Jatiya Kabi Kazi Nazrul Islam University.
I have completed my internship in BASIC Bank Limited and I have finalized my report named
as “General Banking Activities & Financial Performance Analysis of BASIC Bank
Limited”. I have tried my level best to cover adequate information. Therefore, I would like to
submit my report on your very concern. I hope you will be kind enough to discover my
observation during the internship period in BASIC Bank Limited. Rather, in case if you have
any further clarification, I would welcome the opportunity to consult with you to explore how
my findings could best meet your needs.
Your Sincerely,
Prodip Saha
ID: 18132607
Session: 2017-2018
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Declaration of Student
I, Prodip Saha, ID: 18132607, department of Finance and Banking, hereby declare that this
report on as “General Banking Activities & Financial Performance Analysis of BASIC
Bank Limited” has been prepared as a part of my internship study. It is a mandatory part of
our BBA program to submit an internship report. I also want to acknowledge that this report is
only prepared for academic purpose and no confidential data of the bank has been disclosed in
this report.
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Supervisor’s Certificate
The internship report named “General Banking Activities & Financial Performance
Analysis of BASIC Bank Limited” was submitted to honourable teacher Professor Dr.
Shohel Rana, Finance and Banking Department of Jatiya Kabi Kazi Nazrul Islam University,
to fulfil the requirements of Bachelor of Business Administration degree, prepared by ID No
18132607. The report has been approved and will be given to the internship defence committee
for review. As a final internship report, I acknowledge the receipt of this document.
The report and this research, hopefully will be worthwhile. I wish him best of luck in his job
and life.
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Acknowledgement
At first, I would like to express my greatest profound gratitude to the Supreme Lord as he gave
me intensity and endurance to accomplish BBA courses and prepare this internship report
within the assigned time.
Then I want to give thanks to our honourable teacher Professor Dr. Shohel Rana department
of Finance and Banking Jatiya Kabi Kazi Nazrul Islam University, for providing me support
with all the necessary resources and information and also encourages me a lot during preparing
my internship report. For his proper guidance I am able to submit my report in the given time
period.
I also express my heartfelt gratitude to my MD. Afaz Uddin (Head of Branch), Manager of
BASIC Bank Limited, Madhabdi Branch, Narsingdi. Throughout this internship period, he
helped me tremendously.
I also admire and thank Kamrul Hasan (Operation Manager) of BASIC Bank Limited, who
allowed me to do an internship and gave me a lot of information needed to compile my
internship study.
I also express special thanks to all the employees of BASIC Bank Limited, Madhabdi Branch
who helped me a lot to accomplish the report though they have to maintain a very busy
schedule.
At the end I would like to give my heartfelt thanks to my family, friends, teachers and
colleagues who supported me whenever I needed them.
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Executive Summary
The prime aim of the report is to record experience of internship which is effectively
accomplished under BASIC Bank Limited. Firstly, general banking operations are being
portrayed. Later, financial performance is being studied on BASIC Bank Limited from 2017 to
2021 as per main research of report.
BASIC Bank Limited is one of renowned commercial Bank which is controlled by

government of Bangladesh. Over a decade, the bank has established a strong impression for
providing quality financial services towards its clients.
The purpose of this research study is to conduct extensive analysis of financial performance of
BASIC Bank Limited. The profitability, liquidity, leverage, solvency is being anatomized
by this study.
Financial data is being analysed by adopting the method of ratio along with percentage and MS
Excel has used to build several figures on different items. Ratio as well as trend analysis are
shown on data analysis part. BASIC Bank Limited is suffering from liquidity crisis, insufficient
capital, lack of reserve and surplus, no profit is incurred due to loss of interest income, high
percentage of loans is sanctioned as per loan to deposit ratio.
The net profit as well as liquid asset ought to increase on the contrary borrowings should be
reduced and additional capital should inject in the bank.
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Table of Contents
SL. No Particulars Page No

1 Letter of Transmittal iii
2 Declaration of Student iv
3 Supervisor’s Certificate v
4 Certificate from Organization vi
5 Acknowledgement vii
6 Executive Summary viii
Chapter 1 Introduction
1.1 Introduction 2
1.2 Scope of the Study 2
1.3 Objectives of the Study 2-3
1.4 Methodology of the Study 3
1.5 Limitations of the Study 3
Chapter 2 Company Profile
2.1 Historical Background 5-6
2.2 Vision of the Company 6
2.3 Mission of the Company 6
2.4 Goals 6-7
2.5 Objectives 7
2.6 At a Glance 7
2.7 Functions 8-9
2.8 Lending Criteria 9-10
2.9 Organizational Structure of BASIC Bank Ltd. 10-12
2.9.1 Management 11
2.9.2 Board of Directors 11-12
Chapter 3 Products & Services of BASIC Bank Ltd.
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3.1 Retail Products 14
3.1.1 Deposit Products 14-17
3.1.2 Loan Products 17-18
3.1.3 Debit Card 18-19
3.1.4 Credit Card 19
3.2 SME Products 19
3.2.1 SME Loan Products 19-20
3.2.2 SME Deposit Products 20-21
3.3 Corporate Products 21
3.3.1 Corporate Deposit Products 22
3.3.2 Corporate Loan Products 22
3.4 Services of BASIC Bank Ltd. 23
3.4.1 ATM Services 23
3.4.2 A-Challan 23
3.4.3 SWIFT 23
3.4.4 Locker Services 24
3.4.5 BEFTN 24
3.4.6 RTGS 24
3.4.7 Utility Bill Services 24
3.4.8 e-GP 25
Chapter 4 Overview of Internship
4.1 Internship Experience 27-28
4.2 General Banking Department At a Glance 28
4.3 Activities in General Banking Department 28-29
4.3.1 Tasks Related to Account Opening Section 29
4.3.2 Tasks Related to Cheque-book 29
Chapter 5 General Banking Activities of Cash, Accounts, Account
Opening Section
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5.1 Cash 31-33
5.2 Accounts Section 33
5.3 Accounts Opening Section 34-37
5.4 Issue of Cheque Book 37
Chapter 6 General Banking Activities of Customer Service & Clearing
House
6.1 Demand Draft 39
6.2 Pay Order 40
6.3 Telegraphic Transfer 40-41
6.4 Clearing 42-43
Chapter 7 Financial Performance Analysis
Ratio Analysis of BASIC Bank Ltd. 45-51
Trend Analysis of BASIC Bank Ltd. 52-60
Chapter 8 Findings, Recommendations, Conclusion, References
Findings 61
Recommendations 62-63
Conclusion 63
References 64
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List of Figures
Name of Figures Page No

Debt to Equity Ratio 45
Debt to Total Asset Ratio 46
Return On Asset Ratio 47
Return on Equity 48
Capital Adequacy Ratio 49
Loan to Deposit Liabilities Ratio 50
Liquid Asset to Deposit Liabilities 51
Net Interest Income 55
Total Operating Income 56
Net Income 57
Total Asset 58
Total Liabilities 59
Total Shareholder Equity 60
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Chapter: 1
INTRODUCTION
This Chapter Includes
1.1 Introduction
1.2 Scope of the Study
1.3 Objectives of the Study
1.4 Methodology of the Study
1.5 Limitations of the Study
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1.1 Introduction
In the modern era, banking is an essential part of any economy. Banks are the backbone of the
financial system, and they play a crucial role in mobilizing savings, channelling funds to
productive investments, and facilitating transactions. Basic Bank Limited is one such bank that
operates in Bangladesh, providing a range of banking services to its customers.
The aim of this research study is to analyse the general banking activities and financial
performance of Basic Bank Limited over the past few years. The study will focus on key areas
such as deposits, loans and advances, profitability, and asset quality, among others, to assess
the bank's overall performance.
The banking industry in Bangladesh has undergone significant changes in recent years, with
increased competition and regulatory reforms. This study will examine how Basic Bank
Limited has adapted to these changes and the impact they have had on the bank's financial
performance.
The findings of this study will be of significant interest to stakeholders such as shareholders,
customers, regulators, and policymakers, who are concerned with the financial health of the
bank. Moreover, the results of this study can be used as a basis for developing strategies for
the bank to improve its performance in the future.
1.2 Scope of Study
Adequate information related to financial performance is being portrayed by this report. When
I was studying other relevant research paper, then prime financial factors was noted by me.
Afterwards, I determined those factors through using financial statements given on annual
reports. Financial circumstances of the bank are being informed by this study.
1.3 Objectives of the Study
The primary objective is to identify the financial capacity of the BASIC Bank Limited.
Specific Objectives are as follows:
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 To determine leverage of the firm.
 To evaluate the profitability of the bank.
 To determine the liquidity of the bank.
 To determine the sufficiency of capital of the bank.
 To find the trends of crucial items to understand the financial conditions.
 To understand the general operations of the bank.
1.4 Methodology of the Study
Purposive or judgemental sampling technique has used to cover this financial study since
sample size of time series is fixed by me. In this regard, percentage along with ratio method
has been applied to analyse this study.
However, secondary sources of data have mostly applied than primary sources even if two
sources are used to cover the entire study. Primary sources such as- Discussions with officials,
overseeing general operations used to understand general activities of the bank whereas
secondary sources such as- Annual reports, Financial statements, Other published reports used
to cover study of financial performance.
Interviewing the employee, thoroughly examining the current file, and really observing a case
were all done in order to determine the implementation, supervision, monitoring, and payback
practices.
1.5 Limitations of the Study
 In this study, twelve weeks are utilized to cover all thing but the matter of concern, that
after working in the whole day at office, it is tough to work on study.
 I have limited experience to deal with such kind of study where financial data should
be scrutinized as well as give results.
 Limited access to obtain confidential financial reports can lead to significant variation
over the findings of study.
 Presence of expert opinions may generate significant result which is not possible during
the study period.
 Premium access of modern statistical may be prime cause to find out more accurate
results over analysis.
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CHAPTER: 2
COMPANY PROFILE
This Chapter Includes:
2.1 Historical Background
2.2 Vision of the Company
2.3 Mission of the Company
2.4 Goals
2.5 Objectives
2.6 At a Glance
2.7 Functions
2.8 Lending Criteria
2.9 Organizational Structure
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2.1 Historical Background
In 1988, BASIC Bank Limited, or the Bangladesh Small Industries and Commerce Bank
Limited, was registered under the Companies Act 1913, and it started operating in 1989,
governed by the Banking Companies Act 1991. The Bank was established to finance small-
scale industries with a private-sector bank, as deemed necessary by the policymakers. Initially,
it was a joint venture with the BCC Foundation owning 70% shares and the Government of
Bangladesh (GOB) with 30% shares. However, after the BCCI's closure, the GOB took over
the Bank's ownership on June 4th, 1992, making it a state-owned bank.
Introducing SME Concept In Bangladesh
The only bank in the nation that first began implementing SME banking in investigating the
potential assistance to small businesses through effectively providing financial and consulting
support is BASIC. This was done long before the idea of SME began to emerge.
Basic Bank has always been distinct in its goals. It combines business and development
institutions. According to the bank's Memorandum and Articles of Association, 50 percent of
loanable funds must be used to finance small and domestic businesses.
Financing in Agricultural & Rural Sector
From the beginning of its operations, BASIC has been concerned with the growth of the
agricultural sector and has offered loans at reasonable interest rates to various agro-based
processing industries as well as to farmers directly at the field level via MFI links. BASIC Bank
received multiple Bangladesh Bank Governor's Awards from the Bangladesh Bank as
recognition for its contributions to agribusiness.
Working with local & International Agencies:
In addition to its regular banking operations, BASIC Bank collaborates with a variety of local
organizations, including government agencies, NBFIs, reputable MFIs/NGOs, and
international organizations like the Asian Development Bank (ADB) as a development partner
to implement various government-sponsored development initiatives, of which the
Government's Agro-based Project Financing Scheme, Agribusiness Development Project, and
Second Crop Diversification Project involving the fund of the ADB are particularly
noteworthy. The ultimate goal of those initiatives is to increase agro-enterprises, promote the
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production of High Value Crops in order to increase the income of rural people and so decrease
extreme poverty.
The Bank's consistently expanding clientele and their excellent percentage of service retention
since its founding attest to their unwavering faith in its offerings.
Diverse products, both on the liability and asset sides, in particular a broad variety of financing
products connected to the growth of small businesses and micro industries, as well as
commercial and training operations, draw businesspeople from many economic sectors.
Together with the marketing of products, a great emphasis is placed on serving each client
individually. At this Bank, people do in fact matter. The Bank has used this philosophy to
improve both its clients and its employee resources.
2.2 Vision of The Company
To facilitate economic development of the country by rendering all-out banking services with
special emphasis on finance and promotion of Small and Medium Enterprises.
2.3 Mission of The Company
To evolve as the strongest one in the banking industry by rendering quality and timely services
with innovative ideas towards entrepreneurship development through utilizing human
resources in an effective manner as well as ensuring corporate governance for overall
betterment of the society.
2.4 Goals
 To provide 50% of loanable capital to the financing of small and medium-sized

businesses;
 To assist depositors in maintaining and increasing their funds;
 To enter into agreements for or negotiate all forms of loans, aid, or assistance, whether
private or public, from any local or international source, and to take all necessary
actions to carry out and implement such agreements.;
 To serve as agents for the sale and acquisition of any stocks, shares, or securities, as
well as for any other monetary or commercial transactions.;
 To conduct all forms of guarantee business as well as all kinds of agency business; to
guarantee or accept responsibility for the payment of money or the fulfilment of any
obligation;
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 To support the growth of Bangladesh's small and medium-sized businesses, fund all
forms of banking infrastructure, and offer technical assistance to these businesses;
2.5 Objectives
 To foster a culture of caring in banking;

 To establish and open offices and branches to conduct all or any of the aforementioned
businesses both domestically and abroad, provided that prior permission is obtained
from the Bangladesh Bank; to conduct banking operations in all of its branches; and to
conduct all other pertinent business; and
 To ensure secured banking.
2.6 At a Glance
In spite of fierce competition in the banking sector and a shifting global and domestic economic
landscape, the Bank had a reasonably productive year in 2010. The Bank's performance overall
pleased the Board of Directors, especially for maintaining asset quality and enhancing
shareholder position, stability, and capital position. However, a scandal involving a loan
scheme totalling Tk. 4500 crores surfaced against BASIC Bank in 2014. The Chairman
behaved unethically. He approved the credit despite bank officials' alerts and the central bank's
warnings against such loans.
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Capital Position
Authorized Capital – 55000.00 Million
Paid Up Capital – 10846.98 Million
Total Reserve & Surplus – (37421.89) M
Total Loans & Advances -144451.77 M
Total Assets – 195561.348 Million
Total Liabilities -196136.258 Million
Total Equity & Liabilities – 195561.35M
Table 2.1 – Capital Position Up to 2021
2.7 FUNCTIONS
BASIC BANK LIMITED OFFERS:
 Term loans to sectors of the economy, particularly small businesses.

 Comprehensive commercial banking services, such as deposit collection, short-term
trade finance, working capital financing in processing and manufacturing units, and
financing and enabling international commerce.
 Technical assistance for Small Scale Industries (SSIs) to help them to properly manage
their business.
 Linking non-governmental organizations (NGOs) with microcredit to the urban poor
with the goal of simplifying their access to the official financial sector for fund raising.
 In order to complete the aforementioned objectives, BASIC collaborates closely with
customers, regularly authorities, shareholders, banks, and other financial institutions.
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CORPORATE STRATEGY:
 Providing financial support for small units of industry and business to aid in their
expansion.
 Consistent and long-term growth.
 Investments made with caution.
 Using modern construction technologies.
 Profit maximization.
 Setting up tiny industries.
2.8 LENDING CRITERIA
 Entrepreneur:
To manage the planned industry, the entrepreneur or promoter must be creditworthy
and competitive enough.
 Viability of the Project:
 From an organizational, technological, commercial, financial, and economic
standpoint, the project must be feasible.
 Technical Viability:
 The endeavour need to be both technically sound and environmentally responsible.
 Buildings should be thoughtfully designed and expertly built.
 Commercial viability:
 The product's market prospect potential must be adequately guaranteed at affordable
rates.
 The entrepreneurs should have access to the product's marketing channel.
 Financial Viability:
 As decided by the bank on an individual basis, there should be an acceptable debt
equity ratio.
 During the peak of output, the debt service coverage ratio should be at least 2.5 times.
 IRR should, ideally, not be less than 20%.
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 Economic viability:
 The initiative should guarantee positive effects for the national economy and generate
enough opportunities for employment.
2.9 Organizational Structure of BASIC Bank Limited
In order to achieve its organizational objectives, the bank operates in conformity with the
primary policy directives established by the Board of Directors, the highest policy-making
body. The management is in charge of the bank's daily operations.
Management Hierarchy
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2.9.1 Management
The Managing Director is essentially in charge of BASIC Bank Ltd.'s management structure.
The Deputy Managing Director, General Managers, and Departmental heads working in the
main office are always available to help him with this crucial task. When it comes to reporting
to the Chief Executive, this bank differs from others since it depends more on vertical
integration. Different branch managers always provide their reports to the managing director.
They report to the Heads of the relevant Departments for functional objectives, such as
dismissing any difficult conditions, which aids in prompt decision-making.
2.9.2 Board of Directors
At the moment, there are 6 (six) Directors including the Managing Director. There are two
Committees of the Board of Directors namely the Executive Committee and the Audit
Committee as per guidelines of Bangladesh Bank. Each Committee operates under the Terms
of both as stipulated by the Board and the guidelines of Bangladesh Bank.
Introduction Of Board Of Directors
Professor Dr. Abul Hashem.

Chairman, Basic Bank Limited
Vice Chancellor, Anwer Khan Modern
University
Mr. Md. Razib Pervez

Director, Basic Bank Limited.
Founder & Chairperson – Governance
Policy Explore Center Lead Management-
Political Economy Research Foundation-
PERF
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Dr. Nahid Hossain
Director, Basic Bank Limited
Joint Secretary, Financial Institutions Division,
Ministry of Finance
Dr. Md. Abdul Khaleque Khan

Ex-Managing Director & CEO, Bangladesh
Commerce Bank Limited.
Mr. Shamim Ahammed

Joint Chief (Joint Secretary), Planning Commission,
Ministry of Planning, Government of the People's
Republic of Bangladesh
Mr. Md. Anisur Rahman

Managing Director & CEO,
BASIC Bank Limited
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Chapter: 3
Product & Services OF Basic Bank Ltd
3.1 Retail Products
3.2 SME Products
3.3 Corporate Products
3.4 Services
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3.1 Retail Products: It can be categorized into deposit product, loan product, Debit card
& credit card.
3.1.1 Deposit Product: To help customers increase their savings over time, BASIC Bank
provides a variety of deposit solutions. A large quantity of cash can be deposited for a certain
amount of time to earn an alluring rate of return.
A) BASIC Super Savings Account (BSSA):
A unique kind of savings account with additional bonus advantages of standard interest is the
Basic Super Savings Account. It will promote people's saving behaviours.
B) BASIC Monthly Savings Scheme:
It is a deposit plan with a term of one to five years that works on a monthly payment basis.
Customer will receive the whole amount placed together with any applicable interest at
maturity. In order to maintain the regularity of the program, monthly instalments must be paid
by the last day of each month.
C) BASIC Nari Monthly Savings Scheme:
It is an investment plan for female customers that uses monthly instalments and has a term of
one to five years. The entire sum deposited plus any relevant interest will be given to the client
at maturity. To maintain the plan on schedule, monthly instalments must be made by the last
day of each month.
D) BASIC Probin Monthly Savings Scheme:
It is a deposit plan with a monthly payment schedule for elderly citizens with a duration of 1
to 5 years. Customer will receive the entire sum invested along with any relevant interest at
maturity. To maintain the regular operation of the plan, monthly instalments must be made by
the last day of each month.
E) BASIC Monthly Income Scheme:
By depositing a specific amount of money over a specific amount of time, any mature person
(or persons) can establish this plan in their individual or joint names and receive a set amount
of monthly income. The account holder(s) of the plan must have a savings, current, or SND
account with the bank in order to receive regular payments.
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F) Current Deposit Account:
Customers can use the current deposit facility provided by BASIC Bank, an account that is
simple to use for everyday business operations and allows for immediate access and money
withdrawals from any location in Bangladesh, without any restrictions.
G) BASIC Premium Plus Current Account:
A current savings account with free transfer capability that is only available to the bank's elite
clients, and which offers the possibility of receiving interest benefits based on average monthly
amount.
H) BASIC Friendship Account:
Any firm that pays salaries can use this interest-bearing salary account, which also has an
overdraft option. There may be a deal between the employer and the bank to make such payroll
and other banking services available to the staff.
I) Savings Deposit Account:
This interest-bearing payroll account, which also offers an overdraft facility, is open to any
business that pays salaries. There may be an agreement between the employer and the bank to
provide the employees with such payroll and other banking services.
J) School Banking Account:
The concept of school banking is an exclusive deposit product that has been designed with the
specific objective of fostering the savings habit among students and providing them with an
early exposure to the world of banking. This product takes the form of a savings account and
is designated as a minor account, geared towards familiarizing the younger generation with the
fundamentals of banking.
K) Krishok Savings Account:
The Krishok Savings Account is an exclusive deposit offering from the bank aimed at
promoting saving habits and introducing farmers to banking services. This account can be
opened by any adult individual farmer in their name or in joint ownership, and provides access
to a range of financial services.
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L) RMG Worker Account:
This account is exclusively available for Bangladeshi citizens who work in the readymade
garment industry as individual adults or jointly with others.
M) Leather Industry Worker Account:
This account is exclusively available to Bangladeshi citizens who are adult individual workers
in small industries under the 'Leather Sector Business Promotion Council' in Bangladesh. The
account can be opened in single or joint names.
N) BASIC Chalantika:
This type of account is exclusively available for Bangladeshi citizens who are licensed drivers
and their family members. The account can be opened in either single or joint name.
O) Trinomul Savings Account:
This account is exclusively for Bangladeshi citizens who are low-income generating
professionals and small-scale businessmen. Only adult individuals are eligible to open this
account either in single or joint names.
P) Muktijoddha Savings Account:
This account is exclusively for Bangladeshi citizens who are low-income generating
professionals and small-scale businessmen. Only adult individuals are eligible to open this
account either in single or joint names.
Q) BASIC Double Deposit Scheme:
The scheme requires a unique receipt to be issued for the deposited amount, which will be
provided in the same manner as a Fixed Deposit Receipt (FDR). Until separate receipts are
provided, the existing receipts will be used by the branches for issuing instruments under this
scheme. BASIC Double Deposit Scheme Receipts duly signed by two authorized officials of
the Bank on security paper is issued. Withdrawal can be made on presentation of the receipt
duly discharged.
R) Interest Free Special Savings Deposit Account:
This account is a unique savings deposit product offered by the bank that enables customers to
deposit funds, securely store them, and withdraw money while receiving exemptions from
various charges and fees related to account operations and maintenance. Additionally, it helps
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to foster a savings culture among individuals. In addition, it can be operated by any religious
institutions due to its unique features.
S) Fixed Term Deposit:
BASIC Bank provides fixed term deposit option to encourage customers to save their money
for a specific period of time. Everyone can receive desirable rate of return on his investment
when he deposits a lump sum of money for a constant period of time.
T) Special Notice Deposit (SND):
BASIC Bank offers corporate customers the option to open a Special Notice Deposit Account
for their daily business activities. This interest-bearing deposit account is available to both
individuals and corporations for a short period of time. However, if the customer wishes to
withdraw funds from this account, they must provide 7 days' notice.
U) BASIC Century Deposit Scheme:
BASIC Bank provides a fixed deposit scheme with a tenure of 100, 200, or 300 days that allows
eligible individuals to deposit a lump sum of money and earn a desired rate of return.
3.1.2 Loan Products: The principle of a deposit or loan refers to the amount of money that
a customer puts into the bank as a deposit or borrows as a loan, which is permitted upon by
both parties. To serve the finance requirements of emerging markets, BASIC Bank provides a
range of loan solutions. These loans may be roughly divided into three categories: unsecured
loans, secured loans, and quasi-loans.
BASIC HOME LOAN

 Purchasing an apartment or standalone home inside a city's municipal territory.
 Building a new or existing home.
 Home remodelling.
 Access to other banks' loan takeover capabilities.
 Construction costs for apartments are limited to Tk. 120 Lac.
 20 years at most
 Registered property mortgage and registered IGPA for the sale of the property.
 No unforeseen fees.
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MEET THE NEED LOAN
 Age: 25 to 60 years
 Loan tenure 60 months
 Salaried Executive: Minimum 5 years
 No hidden charges
 Competitive interest
Project Financing (Long, Mid & Short Term)
Large-scale business projects have been funded via project finance, an effective and timely
funding method. It entails comprehending the justification for project funding, creating a
financial plan, determining the risks, putting together a financing strategy, and raising the
necessary finances.
Entrepreneurs undertaking a project can choose from a wide variety of goods and services from
BASIC Bank, including assistance with project finance structuring, risk reduction, and advice
services.
Working Capital Financing
The lifeblood of any freshly launched projects is working capital. Working capital finance from
BASIC Bank offers a variety of options for every business and industry types according to how
they operate. Depending on the types of facilities, we provide a variety of products and services
for financing working capital.
Trade Financing
International Trade has been added as a key branch of contemporary banking since "Business"
began to transcend geographical limits. We have established a solid foundation for providing
a wide variety of goods and services linked to trade finance in order to assist the businesses of
our clients.
3.1.3 Debit Card
Always utilize the Basic Bank's ATM (debit) card; we are available to assist you with your
financial requirements. The advantages of using an ATM (Debit) Card from Basic Bank:
 24-hour access to cash withdrawals
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 Access your account balance whenever you want.
 A printout of a brief account statement.
 Get immediate SMS alerts for each transaction.
 Take out money from an ATM at a different bank.
 Use a debit card when shopping.
 Making tax payments is accomplished by using a debit card.
 Mobile Recharge and withdrawal of ATM Money will have come soon.
3.1.4 Credit Card
Card provided loan under BASIC Bank, which is controlled by government, must use every
time. We depend on your financial assistance Constantly.
Welcome to the BASIC Bank Cards universe! To accommodate both individuals' and
businesses' everyday financial needs, BASIC Bank provides a variety of credit cards. On their
BASIC Bank Cards, our cardholders may take advantage of fantastic lifestyle and travel
incentives all year round.
3.1 SME Products:
Small and medium-sized businesses (SMEs) are frequently referred to as the heart of the
Bangladeshi economy since they provide jobs for millions of people while fostering
sustainability and economic progress. The BASIC Bank offers loans to small and medium-
sized businesses for the purchase of capital equipment, company growth, and working capital
arrangements. It falls under the heading of SME Loan & Deposit product.
3.2.1 SME Loan Products
Small and medium-sized businesses (SMEs) are frequently referred to be the heart of
Bangladesh's economy since they provide jobs for millions of people while fostering
sustainability and growth. The BASIC Bank offers loans to small and medium-sized businesses
for working capital arrangements, company expansion, and the purchase of capital machinery.
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A) BASIC Proyash:
To acquire, repair, or refurbish commercial property; to buy equipment; to fix existing

equipment; to buy tools and replacement parts; and to utilize as working capital.
B) BASIC Amontron:
To purchase tools, supplies, crookery, or other such items.
C) BASIC Nandonik:
To purchase equipment/material, to repair existing equipment, to purchase tools/spares, to

acquire/repair/renovate business premises, to use as working capital.
D) BASIC Okkhor:
To purchase equipment, to repair existing equipment/material, to purchase tools/spares, to

E) BASIC Shaat Sodai:
To purchase equipment/material, to repair existing equipment, to purchase tools/spares, to

F) BASIC Haater Kaaj:
To purchase equipment/materials, to repair existing equipment, to purchase tools/spares, to

G) BASIC Kallayni:
Prospective women entrepreneurs those who are:

(a) Producing/marketing goods by themselves or through others.
(b) Eager to utilize their educational/professional experience and like to set up new projects
or BMRE of existing projects and need working capital.
3.2.2 SME Deposit Products
Small and medium-sized businesses (SMEs) are frequently referred to as the backbone of the
Bangladeshi economy since they provide jobs for millions of people while fostering stability
and expansion. For small and medium-sized businesses, BASIC bank offers deposit services.
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A) Current Deposit Account
BASIC Bank provides a convenient current deposit account for its customers, designed to
facilitate their day-to-day business transactions without any limitations. This account offers
unrestricted and immediate access to funds, allowing customers to withdraw money from any
location across Bangladesh.
B) BASIC Premium Plus Current Account
For top class customers of BASIC Bank, a current deposit account is available that comes with
a service of remittance with no charges. The account provides some interest benefit, which is
determined based on the average monthly balance maintained by the customer.
C) Special Notice Deposit (SME)
withdraw funds from this account, they must provide 7 days’ notice.
D) Fixed Term Deposit
3.3 Corporate Products: Corporate banking refers to the specially designed financial
services that financial institutions provide to businesses in the context of raising money and
providing corporate finance. Corporate Clients' demands differ from one another, and BASIC
Bank is aware that a tailored solution is essential to their company's success. Large Corporate
Houses, Financial Institutions, and Micro-Credit Organizations may all find the financial goods
and services they require with BASIC Bank Corporate Banking.
We provide a variety of products, from short-term loans for ongoing business operations to
long-term loans for company growth. We strive to comprehend each person's unique demands
and create personalized, organized solutions for their business.
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3.3.1 Corporate Deposit Products
BASIC Bank extends its Corporate Deposit Products to cater to the needs of its corporate
banking customers. These products are aimed towards large commercial enterprises,
government agencies, public institutions, and non-profit organizations.
A) Current Deposit Account
BASIC Bank provides a convenient current deposit account for its customers, designed to
facilitate their day-to-day business transactions without any limitations. This account offers
unrestricted and immediate access to funds, allowing customers to withdraw money from any
location across Bangladesh.
B) BASIC Premium Plus Current Account

For top class customers of BASIC Bank, a current deposit account is available that comes
with a service of remittance with no charges. The account provides some interest benefit,
which is determined based on the average monthly balance maintained by the customer.
C) Special Notice Deposit (SND) Account
withdraw funds from this account, they must provide 7 day’s' notice.
D) Fixed Term Deposit
3.3.2 Corporate Loan Products
Corporate Loan at lowest interest rates offers from BASIC Bank
 Simple, clear as well as effortless procedures

 Prompt disbursal
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3.4 Services of BASIC Bank Ltd.
3.4.1 ATM Services
Own a BASIC BANK ATM Card with pride to take advantage of 24-hour banking and many
more perks from our ATMs:
Features
• Banks are open 24/7
• Work in either English or Bangla
• enquiry into balance
• Maximum daily cash withdrawals of BDT 50,000
• Cash and check deposits
• Little statement to print
• option to switch pins
3.4.2 A-Challan
A-Challan System, an automated challan system, has been established to allow for the online
payment of a variety of government service fees. Taxes, government fees, and other items may
be deposited quickly and securely thanks to the Automated Challan System (A-Challan).
Customers can use the A-Challan Service through BASIC Bank.
3.4.3 SWIFT
BASIC Bank provides SWIFT system for our valued customers:
 Payments and banking. We're here to assist you in conducting business safely and reliably,
adhering to legal requirements, increasing operational effectiveness, and innovating at scale
to better serve your clients.
 Financial Crime & cyber security.
 Data & technology.
 Capital Markets.
 Market Infrastructures.
 Corporate treasury.
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3.4.4 Locker Services
 Protect your belongings in a BASIC Bank Safe Deposit Locker, including jewelry,
important papers, and other items.
 Accessible at specific branches
 A smooth hiring process
Features & Benefits
• Continue to keep a BASIC Bank current or savings account (A fixed deposit is not mandatory)
3.4.5 BEFTN
The Bangladesh Electronic Funds Transfer Network (BASIC Bank BEFTN) system enables
the electronic transfer of payments between banks, making it a quicker and more effective
method of inter-bank clearing than the previous BACPS paper-based system. It can manage
many different credit transfers, including payroll, international and domestic remittances,
social security, company dividends, retirement, cost reimbursement, bill payments, corporate
payments, government tax payments, social security payments, and person-to-person transfers.
The system might deal with debit transfers such mortgage, loan, insurance, and utility payments
as well as payments for government taxes, permits, and fees.
3.4.6 RTGS
The transfer of funds from one bank to another inside Bangladesh occurs in real time and on a
gross basis using a Real-Time Gross Settlement (RTGS) payment. Real-time settlement means
that no extra waiting is required before receiving the money. Real Time Gross Settlement
(RTGS) is a highly developed technology that theoretically enables financial transfers between
Banks for local currency transactions in real time. An RTGS payment must be made in
increments of Tk. 100,000. (One Lac Only). On October 29, 2015, Bangladesh Bank introduced
the RTGS (Real Time Gross Settlement) service. BASIC Bank provides the RTGS system to
its esteemed clients.
3.4.7 Utility Bill Services
On May 8, 2014, BASIC Bank Ltd introduced the Real Time Utilities Bill Paying System.
Customers of Dhaka WASA, BTCL, DPDC, DESCO, TITAS, and KGDCL may can pay their
utility bills in real time from any BASIC Bank branch located around the nation.
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3.4.8 e-GP
For the purpose of processing payments and collecting fees for e-GP, BASIC Bank Ltd may
register. Scheduled banks and other payment service providers have unique dashboards with
secure access to the e-GP system. Whatever charge that Procuring Entities designate in the
tender document must be paid through BASIC Bank Ltd.
The e-GP System is an online portal that enables procurement agencies and entities to perform
various procurement-related activities, including publishing Annual Procurement Plans,
Invitations for Tender, Requests for Proposal and Quotation, preparing and submitting tenders,
evaluating them, awarding contracts, managing them, making payments, monitoring
performance, and providing other procurement-related information as required by the PPA
2006 and PPR, 2008, as well as subsequent amendments. It is accessible via a secure web-
based dashboard and utilizes a Procurement Management Information System with Key
Procurement Performance Indicators to streamline and improve the procurement process.
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.
Chapter: 04
OVERVIEW of INTERNSHIP
4.1 Internship Experience
4.2 General Banking Department at a Glance
4.3 Activities in General Banking Department
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4.1 Internship Experience
I appointed as an intern by BASIC Bank Limited under Madhabdi Branch on 18th December
2022. As I was novice in a practical field like banking so I got nervous. The warmth welcome
of all employees had blown away my restlessness and I was fortunate enough to get co-workers
who were cordial across my internship journey. Even though there are other departments like
credit and foreign exchange division but I had worked only general banking division of the
branch. Since the general banking is the heart of all division so it covers several sorts of
customers of bank.
In this division, I come to know that how to open an account, how to file RTGS, how to clear
a cheque, how to entry each transaction through cash section. Supervision and cooperativeness
of respective authorized officer thrived me to learn many skills that is mentioned earlier. I was
always energized and motivated through working conditions along with pleasant behaviour of
officials. It is tough to cover whole banking knowledge within three months but I am able to
blend my conceptual and pragmatic knowledge through proper dedication across my internship
journey.
My charge and obligations are as follows:
Convincing the potential customers
I was always prompt to provide information of products like DPS, FDR & others. Recently,
BASIC Bank is campaigning new scheme named “BASIC MILLIONNAIRE” as so I was
convincing many people about this scheme to subscribe it. Even I also assisted my GB in –
charge to convince clients to buy this product.
Providing cheque book
In my tenure, I provided many cheque books to clients. After demanding for cheque book, I
saw the cheque requisition of the demanding client whether he gave or not. After getting
positive confirmation then I oversaw the cheque book register. I handed over the cheque to
clients when positive confirmation came from cheque book register.
Besides, I had mailed for outward cheque to its corresponding branch to verify the signature
on that cheque and I completed the process of account with its other formalities.
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Implications of Financial Knowledge
As a finance student, I am properly acquainted with time value of money & compounding effect
of interest. I computed the maturity payment of FDR and maturity payment of DPS after
deducting tax imposed by government. I also assisted clients to know current balance of DPS
and interest earned in that period.
4.2 General Banking Department at a Glance
The general banking division carries out a bank's fundamental duties. It handles regular
business transactions. It accepts the customer's deposit and honours their checks in order to
satisfy their requests for cash. It typically performs the following primary duties:
Cash Section
Account Opening Section
Customer Service
Clearing House
Accounts Section
4.3 Activities in General Banking Department
Although the chart highlights some of the General Banking Department's most significant
duties, I was unable to work in all of the categories. Under the supervision of an authorized
person, my task consisted of filling out the documents for creating new accounts and to observe
mail of the branch so that I can find the inward cheque to verify the signature on it. After getting
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inward mail, I delivered the print copy of inward cheque to my operation manager who called
the client of that inward cheque as well as verified the signature on inward cheque. Sometimes
I visited the cash section to see how cheque were honoured & posting the transactions. When
official of GB was not present his desk then I file the RTGS of the clients & hander over to
operation manager for approval of client’s RTGS.
So I will only discuss how an account is established and the paperwork required to finish the
account opening procedure in this chapter.
4.3.1 Tasks related to Account Opening Section
Task of account opening has been begun by converting the potential customers into clients. To
open an account, customer must give proper documents as per official guidelines of the bank.
Customer must give photograph of both nominee or him or her. My task is to verify the NID
card authorized by Bangladesh Govt. and take NID verification copy of BASIC bank linked
with Bangladesh Election Commission. My duty to take signature on account opening form
along with transaction profile and enquiry about present and permanent address. Afterwards, I
fill the form and also fill the KYC along with TP. Further, I took signature of clients on cheque
requisition slip in case of cheque bearing accounts. Lastly, I open the account opening register
to enlist the account that was inaugurated.
4.3.2 Tasks Related to Cheque book
Issuing cheque book is the prime duty of newly opened account. In this regard, I would take
signature on cheque requisition slip and fill the account number as well as leaves number of
cheque book over cheque requisition slip. To protect the cheque being fraud the main branch
generates unique random code for each leaf of cheque book that make me stunned. When
cheque books came from head office through courier into the branch, I placed the unique
random number that authorized by officer over each leaf on the back side of cheque book.
Afterwards, I call the clients to take the cheque book by giving signature on cheque book
register.
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Chapter: 05
General Banking Activities of Cash,

Accounts, Account Opening Section
5.1 Cash
5.2 Accounts
5.3 Account Opening Section
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5.1 Cash:
The cash segment indicates a bank's level of liquidity. While it works with cash, it is also
delicate. While working on this portion, all focus is given. Special precautions are also made
in terms of safety. If there is any imbalance in the case account, a heated scenario will exist.
Cash Section
The function of this unit is to receive and payment of cash. The vault limit cash limit of the
branch is TK.15000000 and TK.1000000 respectively. The head teller is allowed to en cash
check up to TK.100000 with her own signature. If additional cash is required then the second
man of the branch makes arrangement on request. There are one chief officer, one senior
officer, and two Banking officers in this department.
Starting at the banking hour, this part is operational. The opening cash balance is the amount
that the cashier takes out of the vault to start a transaction. Vault is maintained in a room with
high security. The branch manager and cash officer are in possession of the room's keys. The
opening cash balance amount is recorded in the system. The remaining cash in the cash counter
after a full day of transactions is placed back in the vault and is referred to as the closing
balance. In this area, money is received and disbursed.
Cash Receipt
 The depositor initially completes the Deposit in the Slip. In this Branch, the same
Deposit in Slip is utilized for saving and current accounts.
 After filling the required deposit in slip, depositor deposits the money.
 Employees at the cash counter collect the money, count it, record the amount in the
register that is maintained there, seal the deposit slip, date it, and save the portion
that belongs to the bank. The depositor receives the remaining portion.
 All deposit slips for savings, current accounts, and standard accounts are kept in the
accounts division.
Cash Payment
Cash payments for various instruments are made at the cash section. Here, the procedures for
cashing a check payment are discussed in detail. The process of cashing a check involves
several steps.
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 The check is initially delivered to the in-charge officer at the counter by the client as a
whole. The officer checks his account balance online and confirms that the check has
two signatures on the back. After that, the cash manager will get it from the officer.
 After confirming the signature on the signature card, the cashier in charge authorizes
the officer to debit the client's account by posting on the computer. A posted seal is
provided with a teller number.
 If the signature matches the one previously provided, the teller will proceed with the
transaction while holding the paying cheque and writing the denomination on the back.
• The check is stamped with a cash payment seal, and the payment record entry is made.
There are few things that shall be scrutinized and checked before making payments.
 A drawer's name.
 Number associated with an account.
 Signature of a specimen.
 Verify the check's legitimacy and verify sure it is not post-dated or undated.
 The amount in both words as well as numbers is identical.
 CASH BALANCE CALCULATION:

The calculations are performed by the officer in charge of the cash department, and a sub-
manager or other authorized officer then verifies the balance and enters a signature in the cash
balance book. In the balance book, the balance is kept. The prior day's closing balance serves
as the opening balance for the following day. For the purpose of determining the closing
balance or cash balance, the total receipt for the day is added to the opening balance and the
total payment is subtracted.

 CASH PACKING AND HANDLING:
Cash is packaged per denomination after banking hours when the counter is closed. The notes
are tallied many times, bundled, stetted, and initialled.
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 TELLER CUSTOMER RELATIONSHIP:
A customer often interacts with a teller on the counter while visiting a bank. A teller is a person
who delivers and receives cash from the cash counter. Thus a teller needs to possess a specific
attribute.
 Ought to be cordial.
 Deliver fast response.
 Be precise in his work.
 Be cautious.
 To possess limitless tolerance.
 Be sensible.
 In other words, a cashier must be effective or else he will be penalized.
5.2 Accounts Section

All transactional data and various statement types are kept by the accounts section. All involved
sections submit transaction vouchers to this department at the conclusion of the transaction
hour. The accounting section compares each number, amount, and transaction's substance to a
computer-generated supplemental statement. This agency notifies the relevant department if
there is a discrepancy with respect to any transaction. The activities of the accounts section are
as follows:
 Entering every transaction into the cash book.

 Creating the daily, weekly, monthly, half-yearly, and annual fund positions.
 To draft various statements pertaining to Bangladesh Bank, the main office, and the
National Board of Revenue (NBR).
 To create the monthly administrative expense statement, provident fund statement,
and salary statement.
 To impose fees for various kinds of service.
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5.3 Account Opening Section
Types of Account
Customers' demands are always being monitored, and BASIC Bank offers a broad variety of
deposit packages to guarantee clients complete pleasure.
There are mainly five types of Accounts are as follows: -
 1. SAVINGS BANK DEPOSIT ACCOUNTS (S.B):

 With the full approval of the bank, a savings bank deposit account may be formed in
the name of an adult individual, jointly in the names of two or more individuals, payable
to either one, the other, both, or all of them, or to the survivor.
 These are deposit accounts that pay interest. (The current interest rate of BASIC Bank
Ltd. is 3.50%.
 Overdrafts on savings accounts are not permitted.
 Savings bank accounts cannot be used for current accounts.
 In order to prevent the banker's interest payments from becoming non-compensating,
the drawings are limited in terms of both the quantity and frequency of withdrawals.
 For the month in which transactions total more than twice per week or more than 25%
of the account amount without prior notification, no interest will be paid in a savings
bank account. A 7-day written notice is required to be provided to the bank before
making any withdrawals that surpass 25% of the amount.
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 Between the fifth and the last day of the month, the minimum amount in an account's
credit will be used to compute interest.
 Interest will be charged semi-annually on June 30th and December 31st at the rates
specified by Head Office.
 These accounts are designed for personal savings only; they are not appropriate for
businesses that need to make regular transfers.
 A bank may, however, decline to start a savings account without providing a cause.
 Savings bank deposit accounts may be closed by the bank at any time and without
cause.
 . 2. CURRENT DEPOSIT ACCOUNT (C.D):
 Individuals, firms, companies, clubs, associations, and corporate bodies with

contractual capacities are eligible to open a Current Deposit Account. This account is
available for any entity that requires a current account.
 The Current Deposit Account permits withdrawals on demand, and there are no
limitations on the amount that can be withdrawn, provided that there are enough funds
available in the account to cover the requested withdrawal.
 Interest is not earned on the amount of money that is stored in current accounts.
 The bank has the discretion to reject the opening of a current account by any individual
without providing an explanation.
 The Bank has the authority to terminate any current account after giving advance notice.
 3. SHORT TERM DEPOSIT ACCOUNTS (STD):
 Corporations, banks, and financial institutions, among other entities, generally initiate
the opening of Short Term Deposit Accounts (STD).
 The account holder(s) can withdraw these deposits after providing a 7-day notice, and
the withdrawal is only permitted after the notice period has elapsed.
 The rate of interest for STD accounts is set by the Head Office, and is subject to change.
At present, the interest rate offered by BASIC Bank Ltd. for STD accounts is 3.50%.
 The calculation of interest will be based on the products produced daily, and it will be
credited bi-annually, specifically at the end of June and December, or upon the closure
of an account.
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 4. FIXED TERM DEPOSITS (FTD):
 A fixed deposit account can be initiated by a solitary adult individual, multiple adult
individuals jointly, or any government, private, autonomous, or alternative
organizations.
 The deposits will be available for a set period of time, which can vary between three
months and two years.
 The interest earned on the FDR will only be paid out after the FDR has reached its
maturity date, along with the original amount that was deposited .
 Following rate of interest on FDR is prevailing in BASIC Bank Limited.
Rate Of Interest On FDR
Period Interest Rate

3 Months 6.75℅
6 Months 6.75%
12 Months 7.00%
24 Months 7.00%
 After the completion of the maturity period, the FDR can be redeemed upon request, as
long as the depositor has signed and submitted the FDR document as proof of
ownership.
 In the event that an FDR is redeemed before its maturity date, the depositor will not
receive any interest within the first three months. However, if the FDR is redeemed
after three, six, or twelve months (depending on the initial term), but prior to its maturity
date, the depositor will receive the interest earned during that period.
 (Circular no. BASIC/HO/ICD/2000/7583)
 Whenever the FDR is opened, it should be treated as a distinct agreement separated
from any previous instances or versions.
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ACCOUNT OPENING PROCEDURE [Flowchart]:
Given flowchart portrays the process of opening account: -
Applicant must Form of signing must be An account holder

accomplish the account accomplished by him needs introduction
opening form
When cash is being A deposit voucher must Respective official

credited to account then be given and it has to assesses the file
chequebook is given be paid by using cash provided by him
5.4 ISSUE OF CHEQUE BOOK

 ISSUE OF FRESH CHECKBOOK:
A new cheque book is only given to the account holder upon request on the required demand
form that is affixed to the previous cheque book and only after the account holder's signature
has been properly verified in person or by his legally authorized agent against a proper receipt.
 Issuance of Fresh cheque book: -
Cheque requisition draft is When every procedure

Requisition slip filled up being validated by officer properly accomplished
properly along with then officer issue
chequebook number cheque book
Customer name along
with cheque book
number records in the
cheque book register.
 Issuance of Duplicate cheque book: -

Duplicate chequebook in lieu of lost one should be issued only when A/C holder
personally approaches the bank with an application letter of indemnity in the prescribed
pro-forma agreeing to indemnify the bank for the lost chequebook. Fresh chequebook
in lieu of lost one should be issued after verification of the signature of the account
holder from the specimen signature form.
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Chapter: 06
General Banking Activities of
Customer Service & Clearing House
6.1 Demand Draft
6.2 Pay Order
6.3 Telegraphic Transfer
6.4 Clearing House
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CUSTOMER SERVICE:
D.D, T.T, PAY ORDER are being availed by this section
6.1 Demand Draft
Demand draft is an instrument is being used to remit funds to another party. Demand drafts is
being utilized to shift funds from one part to another part across the country. It should be issued
instead of using cash and cheque.
Given flowchart portrays the process of operating Demand Drafts:
The appropriate A written order, known

Person who document must
wants demand as a Demand Draft, is
be completed by provided to a client,
draft must have
filling in the referring the bank
account in the
basic bank. necessary details, where payment will be
along with a accomplished, although
credit voucher the actual payment will
intended for the be executed from a
bank different bank
If the demand draft is brought to the Interbank credit advice as well as

bank where it being paid, the banking Demand Draft is delivered to bank
institution will approve and fulfil it. where the payment will be
accomplished
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6.2 Pay Order:
A pay order is a financial instrument issued by a bank or financial institution, which is used to
transfer a specific amount of money from one account to another. It is also commonly referred
to as a bank draft or a cashier's check.
Given flowchart portrays the process of operating Pay Order:
The appropriate document must be

Generate a pay order either in the
completed by filling in the necessary
name of Institution or an individual
details, along with a credit voucher
intended for the bank
If any account with BASIC Bank Ltd.

Beneficiary can choose to deposit to
pay order either in the account attached
with BASIC Bank Limited or any other
bank.
IBCA is being delivered by

collecting bank When PO sends to other banks
Collecting bank sends pay order

towards bank where the payment will
Account of payee is being credited
be accomplished via clearing house
through collecting bank
Account of payee is being credited through collecting

bank
6.3 Telegraphic Transfer
When instant fund transfer is required by any person then bank transfer funds through Telex,
Fax, Telephone etc. It is very costly and easiest way to transfer money but both sender and
receiver must have account in a BASIC Bank.
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Given flowchart portrays the process of operating Telegraphic Transfer
The appropriate document must be

completed by filling in the necessary The content of the
Person who wants telex is transcribed
details, along with a credit voucher
demand draft must or the necessary
intended for the bank
have account in the
information as
basic bank.
well as test code is
transmitted to the
payee's bank via
fax or telephone
In addition, two more

copies of the telex are
dispatched via courier to
the payee's bank
Two copies are delivered to the Two copies are delivered to the
reconciliation department located at the reconciliation department located at the
Head Office - one originating from the Head Office - one originating from the
bank of the drawer and the other bank of the drawer and the other
originating from the bank of the payee originating from the bank of the payee
Account of payee is being credited Prior to that, the payee's bank decodes
through collecting bank the test and confirms agreement if the
test is satisfactory
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6.4 CLEARING
Schedule Banks are the banks who are subscribers of clearing house as per article 37(2) of
Bangladesh Bank order,1972. Cheques that are presented on each other are being cleared via
clearing house. Central bank controls that clearing house and it appointed many officials to
clear cheques, bill, etc.
Every bank has clearing section that accepts cheque from its clients to collect money via
clearing house as well as to credit its customer accounts. High value and regular value are
associated with clearing cheques. High value is considered if the amount of cheque is above
tk. 500000 otherwise it is considered regular value. The present cut off time and return time for
high value 11.15 am and 2 pm respectively whereas the present cut off time and return time for
regular value 11:45 am and 3.15 pm respectively.
Clearing can be categorized in two: Inward clearing and Outward clearing
Inward Clearing Bills
BASIC Bank obtains bills that presented from other bank via clearing house and that
instruments must be honoured by BASIC Bank. Given flowchart portrays the process of
operating outward clearing bills:
The BASIC Madhabdi branch obtains

instruments from other banks through Account of BASIC Bank that is
the clearing house, utilizing its own operated by Bangladesh Bank debits
funds from the BASIC Madhabdi through Bangladesh Bank.
branch account
Bangladesh Bank Delivers Inter Bank

Debit Advice attached with that bills
towards Madhabdi Branch.
Corresponding account of clients is being debited by BASIC Bank

Madhabdi Branch.
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Outward Clearing Bills:
Other Banks honoured the bills that are presented by BASIC Bank through clearing house.
Given flowchart portrays the process of operating outward clearing bills:
Bill deliver towards Corresponding Branch Corresponding

corresponding branch via obtains bills together branch honours bill
clearing house with outwards bills for and records a journal
collection through into OBC register
clearing house.
Customer account is being credited by BASIC Bank Inter Bank Credit Advice is
Madghabdi Branch while IBCA comes from clearing transferred into clearing house.
house
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CHAPTER: SEVEN
FINANCIAL PERFORMANCE
ANALYSIS
Ratio Analysis
Trend Analysis
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Ratio Analysis of BASIC Bank Limited
Debt to Equity Ratio

The debt-to-equity ratio is a gauge of a business's asset financing strategy. It is additionally
known as the leverage ratio. Simply put, the leverage ratio is a measurement of how much debt
a firm uses to finance the operation of its assets and may be used to evaluate the amount of
leverage a company is utilizing. When a company's debt equity ratio is 1.00 (100%) or less
(x1.00), it means it has the financial strength to meet both its short- and long-term obligations.
While Nevertheless, a leverage ratio higher than 1.00 (100%), for example, 2.00 (200%) is
regarded as perilous. Because doing so indicates that the business is financing its operations
with twice as much debt as equity, which in turn indicates that lenders own a larger stake in
the business than equity investors, which is undoubtedly hazardous.
Figure 1: Debt to equity ratio

In Figure, we have seen that company is used its debt extensively to finance its operations
from 2017 to 2021. But we have seen negative figure in 2021 due to negative shareholder
equity. The ideal benchmark of this ratio 1:1. So Company is not in a satisfactory condition &
it may become insolvent if they don't pay heed to this circumstances.
45 | P a g e
Debt to Total Asset Ratio
A leverage ratio called total-debt-to-total-assets indicates how much debt a corporation has in
relation to its assets. This data may reveal a company's level of financial stability. The degree
of leverage (DOL) and, thus, the risk of investing in that firm, increase as the ratio increases.
A ratio higher than 1 indicates that debt is used to finance a sizable share of the assets. Or, to
put it another way, the business has more obligations than assets. A high ratio also suggests
that a business may be placing itself at danger of loan default should interest rates unexpectedly
increase. In contrast, a ratio below 0.5 shows that a larger proportion of a company's assets is
supported by stock.
Figure 2: Debt to total asset

In figure, we have seen that debt of company has increased year by year from 2017 to 2021.
Company is used above 90 % of the assets as debt so company is losing its solvency day by
day. The ideal benchmark of debt to total asset ratio is 1:4 that means company should have 4
taka assets against the debt of 1 taka.
46 | P a g e
Return on Asset Ratio
The Return on Assets (ROA) ratio evaluates a company's ability to effectively manage its assets
in order to produce profits over time. It helps determine how successfully the business can turn
its asset investments into profits.
Investors find a greater ratio more enticing since it shows that the firm is more adept at
managing its assets to increase net income. A declining ROA may be an indication that a
business has chosen poorly to make capital investments. Furthermore, it doesn't generate
enough income to pay for the cost of those assets. A declining ROA might indicate that
declining sales or revenue are the cause of the company's declining profitability.
Figure: 3 Return On Asset
In Figure, we have seen that company has negative return against total assets from year 2017
to 2021 since company incurred losses every year. The present scenario of the company is
alarming due to incessant losses every year.
47 | P a g e
Return on Equity
Return on equity is the term used to describe the profit made in relation to the amount of
shareholder equity used to finance that profit. It is often represented as a proportion of
shareholders' equity divided by net income. A greater ROE indicates that the business is
producing more income from the same amount of resources.
The return on investment (ROI) of a business may be negative. Conversely, the corporation
may have negative shareholder equity during periods of good net income returns as a result of
liabilities surpassing assets. In this case, the formula's ROE calculation will result in a negative
ROE.
Figure 4: Return On Equity

In figure, we experienced consistent losses every year that’s because return on equity is
negative. We see many fluctuations but it is extreme in 2017 along with 2021. The ideal
benchmark of this ratio is 10-15%, this indicates that company lost its capacity to earn profit.
48 | P a g e
Capital Adequacy Ratio
The capital adequacy ratio (CAR) is a calculation that expresses a bank's available capital as a
proportion of its risk-weighted credit exposures. The capital adequacy ratio (sometimes
referred to as the capital-to-risk weighted assets ratio, or CRAR) is used to safeguard depositors
and advance the stability and effectiveness of financial institutions.
A high capital adequacy ratio is beneficial because it shows that the bank has sufficient capital
on hand, which puts it in a better position to handle unforeseen losses. When the capital
adequacy ratio is lower, a bank is more likely to collapse, which means that regulatory
authorities may need to step in and inject capital. The following link will provide further
information on the Capital Adequacy Ratio (CAR).
Figure 5: Capital adequacy ratio

In figure, we have seen that majority of years has lower capital to deal with unexpected losses
even there is negative figure in 2017 that indicates company faced shortage of capital of
13.22%. This figures conclude that company is suffering from shortage of capital to deal
emergencies issues.
49 | P a g e
Loan to Deposit Liabilities Ratio
The loan-to-deposit ratio (LDR), which compares a bank's total loans to its total deposits for
the same time period, is used to determine how liquid a bank is. A percentage is used to
represent the LDR. The bank may not have adequate liquidity to meet any unanticipated
funding needs if the ratio is too high. If the ratio is too low, on the other hand, the bank could
not be making as much money as it might.
The appropriate loan-to-deposit ratio is often between 80% and 90%. A bank with a loan-to-
deposit ratio of 100 implies that for every taka in deposits it received, it lent one taka to its
clients.
Figure 6: Loan to deposit liabilities

In this figure, we have seen that company is in ideal position to invest its fund.
From 2017 to 2020, company gives more loan than deposit that is received mostly clients of
DPS, FDR & Savings Accounts. In 2021, company sanctions loans of 92.92 % of total deposit
received in 2021. Therefore this figures indicates that company does not keep the money idle.
50 | P a g e
Liquid Asset to Deposit Liabilities
The necessity of commercial banks to retain a specific proportion of their total liabilities in the
form of liquid assets is known as a liquid asset requirement, or ratio. This requirement is
computed as a percentage of short-term liabilities in a variety of nations.
Figure 7: Liquid asset to deposit liabilities

In this figure, we clearly seen that liquid asset is fluctuating year by year & 13.6% of deposit
liabilities as liquid asset is recorded high among all years. This figure indicates that Basic bank
has not sufficient liquid asset to meet its payable on demand.
51 | P a g e
TREND Analysis of BASIC Bank Limited
Trend Balance Sheet
OF
BASIC Bank Ltd
Particulars 2017 2018 2019 Trend Percentage

(Tk. (Tk. (Tk. 2017 2018 2019
Million) Million) Million)
Property &
Assets
Cash 10513.62 8836.51 9736.80 100 84.05 92.61
Balance with 8954.19 924.15 954.55 100 10.32 10.66
other banks
& financial
institution
Money at 0 450 2560 - - -
call & short
notice
Investment:
Government 27110.15 22600.65 23143.58 100 83.36 85.37
Others 1534.88 1338.63 1337.77 100 87.21 87.16

Loan &
Advances:
Loan, Cash, 144586.22 151110 150940.96 100 104.51 104.40
Credit,
Overdrafts
etc.
Bill 982.36 857.43 828.64 100 87.28 84.35
Discounted
& purchased
Fixed Asset 349.66 312.29 472.70 100 89.31 135.19
Other Asset 4785.56 5130.11 4917.07 100 107.20 162.75
Grand 198816.67 19156.41 194915.96 100 167.08 152.46
Total
Capital &
Liabilities
Borrowings 4798.15 8016.77 7315.44 100 167.08 152.46
from other
banking
companies
agents
Bills payable 899.36 888.63 923.02 100 98.81 102.63
52 | P a g e
Deposit &
other
accounts:
Current 5539.03 5674.08 5843.29 100 102.44 105.49
account &
contingency
accounts
Saving bank 5866.35 6373.03 7337.42 100 108.64 125.08
deposit
Fixed 130875.48 118885.82 124203.6 100 90.84 94.90
deposits
Other 36931.18 41340.72 42386.03 100 111.94 114.77
liabilities
Shareholder
equity
Paid up 10846.98 10846.98 10846.98 100 100 100
capital
Statutory 2224.69 2224.69 2224.69 100 100 100
reserve
Other 153.89 27372.07 27260.12 100 17890.2 17817.07
reserve
Surplus in P (26523.47) (30062.42) (33324.66) 100 113.34 125.04
&L
accounts
Total 13907.09 10381.32 7007.14 100 74.65 50.39
shareholder
equity
Total 198816.67 191560.41 194915.96 100 96.35 98.04
Capital &
Liabilities
Trend Income Statement

OF
BASIC Bank Limited
Particulars 2017 2018 2019 2020 2021 Trend Percentage

(Tk. (Tk. (Tk. (Tk. (Tk. 2017 2018 2019 2020 2021
Million) Million) Million) Million) Million)
Interest 7188.99 6461.92 6087.77 4565.15 4888.16
100 89.87 84. 63.5 68.00
Income 68
Interest paid (7377.14) (7721.87) (8470.73) (8770.01) (9311.11) 100 104.67 114. 118. 126
on deposit & 82 88 .22
borrowings
Net interest (188.15) (1259.95) (2382.96) (4204.85) (4422.94) 100 669.65 1266 2234 2350.
Income .52 .84 75
Commission, 682.58 737.74 852.99 663.69 684.50 100 108.08 124. 97.23 100.
53 | P a g e
exchange & 97 28
brokerage
Other 147.50 146.37 142.16 116.27 234.24 100 99.23 96. 78.83 158
Operating 38 .81
income
Total 3238.03 1864.55 18.37 (997.06) (1317.19) 100 57.58 0.57 (30. (40.
operating 79) 67)
income
Salaries, 2156.95 2368.72 2379.65 1966.89 1954.70 100 109.82 110. 91.19 90.62
Allowances 32
Etc.
Depreciation 88.86 57.56 62.42 79.25 76.41 100 64.78 70. 89.19 85.99
& other non 25
cash expense
Other 157.78 158.95 166.43 225.94 267.28 100 104.74 105. 143.2 169.4
operating 48
expenses
Total 2886.48 3065.12 3084.91 2706.06 2705.76 100 106.19 106.87 93.75 93.74
operating
expenses
Profit before 351.55 (1200.56) (3066.53) (3703.12) (4022.96) 100 (341. (872. (1053 (1144
provision 5) 29) .37) .35)
Provision for 7073.78 1758.60 - 221.62 169.79 100 24.86 - 3.13 2.40
loan &
advances
Profit before (6742.39) (3518.44) (3249.30) (3703.12) (4022.96) 100 52.18 48.19 54.92 59.67
tax
Provision for 149.41 57.57 120.40 46.63 47.96 100 38.49 80.58 31.21 32.09
tax
Net income (6843.69) (3538.95) (3269.03) (3718.18) (3969.79) 100 51.71 47.77 54.33 58.00
54 | P a g e
1 Net Interest Income
Particulars 2017 2018 2019 2020 2021
Net interest -188146934 -1259950382 -2382963333 -4204855336 -4422948500
income
Change -1071803448 -1123012951 -1821892003 -218093164
Net Interest Income

0
-188146934
-1E+09
-1259950382
-2E+09
-2382963333
-3E+09
-4E+09
-4204855336
-4422948500
-5E+09
-6E+09
2017 2018 2019 2020 2021
Series1 -188146934 -1259950382 -2382963333 -4204855336 -4422948500
Figure 8: Net Interest Income
Interpretation:
Interest income of BASIC Bank has reduced from 2017 to 2021. We have seen that adequate
variation occurred in net interest income. Highest net interest loss has recorded at 2021 and
loss amount of tk. 218093164 has increased relative to 2020.
55 | P a g e
Total Operating Income
Particulars 2017 2018 2019 2020 2021
operating 3238032722 1864558502 18378862 -997062810 -1317198816
income
Change -1373474220 -1846179640 -1015441672 -320136006
Total Operating Income

4E+09
3E+09
2E+09
1E+09
-1E+09
-2E+09
-3E+09
2017 2018 2019 2020 2021
Series1 3238032722 1864558502 18378862 -997062810 -1317198816
Figure 9: Total Operating Income
Interpretation:
We have seen that a huge declination occurred from 2017 to 2021. There is massive collapsed
in operating income after 2018 and firm failed completely to generate operating income. A
matter of grave concern is that operating loss has recorded highest at 2021.
56 | P a g e
Net Income
Particulars 2017 2018 2019 2020 2021

Net income -6843689621 -3538951612 -3269033852 -3718181224 -3969791178
Change 3304738009 269017760 -449147372 -251609954
Net Income
0
-1E+09
-2E+09
-3E+09
-4E+09
-5E+09
-6E+09
-7E+09
-8E+09
2017 2018 2019 2020 2021
Series1 -6843689621 -3538951612 -3269033852 -3718181224 -3969791178
Figure 10: Net Income

Interpretation:
We have noticed that BASIC Bank failed to generate earning after tax but bank is trying to
shrink the net loss which fluctuated year by year. In 2021, net loss has increased by tk.
251609954 compared to 2020.
57 | P a g e
Total asset:
Particulars 2017 2018 2019 2020 2021
Total Asset 198816672142 191560413416 194915965498 196678184076 195561348367
Change -7256258700 3355552000 1762218600 -1116835700
Total Asset
2E+11
1.98E+11
1.96E+11
1.94E+11
1.92E+11
1.9E+11
1.88E+11
1.86E+11
2017 2018 2019 2020 2021
Series1 1.98817E+11 1.9156E+11 1.94916E+11 1.96678E+11 1.95561E+11
Figure 11: Total Asset
Interpretation:
We have noticed that total assets are fluctuating throughout the period. As 2017 is base year so
declination of tk. 256258700 has spotted relative to 2018. There is an increasing trend from
2019 to 2021 but a little bit declination has occurred at 2021 compared to 2020.
58 | P a g e
Total liabilities
Particulars 2017 2018 2019 2020 2021
Total Liabilities 184909577501 181179089012 187908823989 192958059107 196136257865
Change -3730488500 6729734900 5076235200 3151198700
Total Liabilities
2E+11
1.95E+11 1.96136E+11
1.92958E+11
1.9E+11
1.87909E+11
1.85E+11
1.8491E+11
1.8E+11 1.81179E+11
1.75E+11
1.7E+11
2017 2018 2019 2020 2021
Series1 1.8491E+11 1.81179E+11 1.87909E+11 1.92958E+11 1.96136E+11
Figure 12: Total Liabilities
Interpretation:
In this figure, we observe that total liabilities of BASIC Bank are increasing except 2018 in
which tk. 3730488500 has declined relative to 2017. In 2021 bank has recorded highest
liabilities from 2017.
59 | P a g e
Total Shareholder Equity
Particulars 2017 2018 2019 2020 2021
Total Equity 13907094641 10381324404 7007141509 3693124969 -574909497
Change -3730488500 6729734900 5076235200 3151198700
Total Share Holder Equity

1.6E+10
13907094641
1.4E+10
1.2E+10
10381324404
1E+10
8E+09 7007141509
6E+09
3693124969
4E+09
2E+09
0
-574909497
-2E+09
2017 2018 2019 2020 2021
Series1 13907094641 10381324404 7007141509 3693124969 -574909497
Figure 13: Total Shareholder Equity
Interpretation:
In this figure, we have seen that shareholder equity of BASIC Bank is declining every year. A
conspicuous variation is spotted in shareholder equity each year. In 2021, the shareholder
equity balance becomes negative.
60 | P a g e
CHAPTER : 8
FINDINGS
RECOMMENDATIONS
CONCLUSION
REFERENCES
61 | P a g e
Findings
 Consistent losses make surplus balance negative and negative surplus balance makes
shareholder equity dropped. For this reason, company has huge total debt in terms of
total shareholder equity.
 Borrowings from other banking and deposit accounts increase the total liability every
year whereas assets like balance with other banks and financial institutions had fallen
extremely after 2017. That’s because liabilities had risen rapidly against asset as assets
had not risen like total debt.
 BASIC Bank incurred losses each year due to negative interest income. But it is
occurred as interest earned is less than interest paid. Consequently, ROA & ROE ratios
are inverted.
 Net interest income has been declined throughout the study period from 2017 to 2021.
BASIC Bank has suffered extreme net interest loss in 2020 to 2021.
 Total operating income has been shrinking from 2017 to 2021. Since highest operating
loss has spotted at 2021 so operating loss is increased by tk.320136006 relative to 2
020.
 Net loss of BASIC Bank is shrinking throughout the period.
 Total assets of BASIC Bank have not improved. In 2017, total asset was tk.
198816672142 whereas total asset in 2021 is tk. 195561348367. So trend percentage
is 98.36 is recorded at 2021 as trend percentage is 100 at 2017 in terms of base year.
Therefore, company is in an unfavorable position.
 Total liabilities of BASIC Bank are rising so company has sufficient funds to provide
loans to customers.
 A shareholder equity is shrinking consistently each year and it is dropped so much that
equity balance becomes negative.
Recommendations
 BASIC Bank ought to reduce balance of borrowings from other banks and it ought to
execute deposit liabilities properly.
 BASIC Bank ought to accelerate its reserve & surplus so that shareholder equity
become positive balance in upcoming financial year.
62 | P a g e
 Net profit is the thing that every financial institution wants as so profitability index:
ROA and ROE become measured while at the time of investment. So BASIC Bank
ought to accelerate its profit.
 BASIC Bank should launch desirable product to attract every type of customers.
 To increase profit, it can launch mobile financial services along with E-banking.
 BASIC Bank has not sufficient capital to deal with unexpected losses & emergencies.
In this regard, authorities should inject capital.
 Liquid asset to deposit liabilities ratio tells us that company does not hold enough liquid.
So BASIC Bank ought to increase its liquid asset so that it will able to meet net working
capital requirements smoothly.
Conclusion:
General banking operations and financial performance are being covered by this study from
2017 to 2021. In this study, I am trying to scrutinize financial performance through several
ratios which included from different parts over financial statements and trends of some crucial
things over financial statements.
I am concluding based on my study that BASIC Bank is suffering from shortage of liquidity,
scarcity of capital, highly leveraged, insufficient generation of profit, low reserve and surplus.
These factors indicate that BASIC Bank whether injects additional capital or sales its share into
public to avoid bankruptcy in upcoming financial years. Besides, some extraneous variables
like promptness of management, non-performing loans, political influences are also
responsible to make unfavorable financial circumstances.
63 | P a g e
References
1) Neelima, P. (2014). General banking activities and analysis of financial

performance of BASIC Bank Ltd.
2) Sabiha, A. (2022). General Banking Activities and Financial Performance
Analysis: A case of Al Arafah Islamic Bank.
3) Talukder, H. H. (2016). General banking activities of Basic Bank.
4) Zaman, M. (2015). General banking of Basic Bank Limited.
64 | P a g e

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JATIYA KABI KAZI NAZRUL ISLAM UNIVERSITY

Internship report on “General Banking Activities & Financial Performance

Date of submission: 13th March, 2023

13th March, 2023

Subject: Submission of Internship Report.

BASIC Bank Limited is one of renowned commercial Bank which is controlled by

SL. No Particulars Page No

Name of Figures Page No

This Chapter Includes

1.2 Scope of Study

1.3 Objectives of the Study

Specific Objectives are as follows:

1.4 Methodology of the Study

1.5 Limitations of the Study

This Chapter Includes:

2.1 Historical Background

2.2 Vision of the Company

2.3 Mission of the Company

2.8 Lending Criteria

2.9 Organizational Structure

Introducing SME Concept In Bangladesh

Financing in Agricultural & Rural Sector

Working with local & International Agencies:

2.2 Vision of The Company

2.3 Mission of The Company

 To provide 50% of loanable capital to the financing of small and medium-sized

 To foster a culture of caring in banking;

Table 2.1 – Capital Position Up to 2021

BASIC BANK LIMITED OFFERS:

 Term loans to sectors of the economy, particularly small businesses.

2.8 LENDING CRITERIA

2.9 Organizational Structure of BASIC Bank Limited

2.9.2 Board of Directors

Introduction Of Board Of Directors

Professor Dr. Abul Hashem.

Mr. Md. Razib Pervez

Dr. Md. Abdul Khaleque Khan

Mr. Shamim Ahammed

Mr. Md. Anisur Rahman

This Chapter Includes:

3.1 Retail Products

3.2 SME Products

3.3 Corporate Products

A) BASIC Super Savings Account (BSSA):

B) BASIC Monthly Savings Scheme:

C) BASIC Nari Monthly Savings Scheme:

D) BASIC Probin Monthly Savings Scheme:

E) BASIC Monthly Income Scheme:

G) BASIC Premium Plus Current Account:

H) BASIC Friendship Account:

I) Savings Deposit Account:

J) School Banking Account:

K) Krishok Savings Account:

M) Leather Industry Worker Account:

O) Trinomul Savings Account:

P) Muktijoddha Savings Account:

Q) BASIC Double Deposit Scheme:

R) Interest Free Special Savings Deposit Account: