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“Overall Banking System of Jamuna Bank Ltd’’

1.1 Introduction Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban (4th & 8th Floor), 3, Dilkusha C/A, Dhaka -1000. The Bank started its operation from 3rd June 2001.  Jamuna Bank Limited is a highly capitalized new generation Bank started its operation with an Authorized Capital of Tk.1600.00 million which is amended by Tk. 4000.00 million and Paid-up Capital of Tk.390.00 million. The Paid-up Capital has been raised to 2964.48 million in March 31,2011.  Currently the Bank has 67 branches all over the country. The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial  bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of trade, commerce and industries.  The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking.  The Management of the bank constantly focuses on understanding and anticipating customers’ needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within the few years. The bank has already ranked as one of the quality service providers & is known for its reputation.  Jamuna Bank Ltd. offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities.

2.1 Organizational Objects:

1. To earn and maintain CAMEL Rating “Strong” 2. To establish relationship banking and improve service quality through

development of strategic Marketing plans. 3. Be one of the best banks of Bangladesh. 4. To introduce fully automated systems through integration of information

technology. 5. Achieve excellence in customer services and superior to all competitors. 6. Cater to all differentiated segment of retail and wholesale customer. 7. Be a high quality distributor of product and services. 8. To ensure an adequate rate of return on Investment. 9. To maintain a healthy growth of burins with desired image. 10. To ensure optimum Utilization of all available resources.

2.2 Bank’s Mission and Vision:

2.2.1 Vision: To become a leading banking institution and to play a pivotal role in the development of the country.

2.2.2 Mission:The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

2.3 Organogram:

2.3.1 Board of Directors:Board of Directors of the Bank is a unique combination of both private and Government sector experience. Currently it consists of 13 members elected from the share holders. There are seven directors that represent the sponsors and general public and senior officials in the rank and status of Additional Secretary/Joint Secretary represent the Government. Managing Director is the ex-officio Director of the Board. In line with the guidelines of Bangladesh Bank, a three member Audit Committee of the Board of Directors has been formed to assist the board in matters related to Audit and Internal Control System of the Bank.

Board of Directors

1 Al-haj Md. Belel Hossain Chairman2 Gazi Golam Murtoza Vice Chairman3 Md. Motior Rahman Managing Director4 Engr. A.K.M. Mosharraf Hussain Director5 Al-haj.M.A. Khayer Director6 Md. Mahmudul Hoque Director7 Md. Tajul Islam Director8 Al-Haj Nur Mohammed Director9 Engr.Md. Atiqur rahman Director10 Al-Haj Md. Rezaul Karim Ansari Director11 Farhad Ahmed Akand Director12 Kanutosh Majumder Director13 Golam Dastagir Gazi Bir Protik Director14 Fazlur Rahman Director15 Shakhawat Abu Khair Mohammad Director16 Md. Sirajul Varosha Director17 Md. Ismail Hossain Siraji Director18 A.S.M.Abdul Halim Independent Director

2.3.2 Management StructureThe fourteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.The CEO and Managing Director are assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.

2.3.3 Managerial Hierarchy of Jamuna Bank Ltd. :

2.4 Employee position of Naogaon Branch :

There are 20 employee in Naogaon Branch and their position is given below

SL NO

Name of The Employee Designation

Chairman

Board of Director

Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Junior Assistant Vice President

Senior Executive Officer

Executive Officer

First Executive Officer

Officer

01 Md. Rafiqul Islam Senior Assistant Vice President02 Mst. Farhana Yeasmin Rabbi First Assistant Vice President03 Subash Chandra Saha Senior Executive Officer04 Md Abul Kalam Senior Executive Officer05 Jencina Akter Banu Senior Executive Officer06 A .H .M .Raihanul Alam Executive Officer07 Md. Ruhul Amin Executive Officer08 Md. Abdul Hakim First Executive Officer09 Ratan Kumar Kundu First Executive Officer10 S .M .Golam Feroz First Executive Officer11 Md. Kamruzzaman Officer (General)12 Md. Aynul Haque Shah Officer (Cash)13 Avijit Kumar Bormon Provisionary Officer14 Md. Faruk Alam Provisionary Officer15 Asit Sarker Driver16 Md. Sohel Mollah Peon17 Md. Motiur Hossain Peon18 Md. Abul Basar Mithu Cleaner19 Alam Mondal Tea Boy20 Md.Mehedi Hasan Peon

All the employees are well educated and well mannered. The performance of the branch in June, 2011, the deposit target was Tk. 8 Crore and achievement was Tk. 5.25 Crore, the import target was (Tk. 1.5 Crore) and achievement was (Tk. .90 Crore). In case of advance target was (Tk. 8 Crore) and achievement was (5.5 Crore). Most importantly, Profit position in June, 2011 is Tk. 1.10 Crore. Foreign Department plays a vital role in facilitating export and import of the country. It comprises of export, import and Foreign Remittance sections. Through these sections it opens letter of credit, provides different types of loans like; loan against trust receipt (LTR), Loan against imported merchandise (LIM) to its consumers. Naogaon Branch of Jamuna Bank Ltd. abides by all rules and regulations, policies and procedures relating to different banking activities strictly.

2.5 Product and Services:Jamuna Bank Limited (JBL) engages in wide range of activities from small scale lending to large industrial project financing. It involves other many services. Its range of products & services at glance are as follows:Deposit Loans And Advance Foreign Other service

Current account Loans (General) Demand draftSavings account LTR (Quarterly) Import L/C Pay orderShort term deposit Cash Credit Hypo Foreign

RemittanceTelegraphic transfer

Fixed deposit Lease Financing (Monthly)

Other deposit under scheme

Loans Ag. Staff House Building

Selling and buying Foreign currency

Special savings deposit scheme

SOD (Financial Obligation)

SOD (General)

SOD (FDR)Consumer Credit Scheme

SME Loan

LDBP

PAD (Cash)

PAD (Back to Back)

Demand Loan ABP-(BTB L/C)

Demand Loan ABP-(D/P L/C)

2.5 Product Description:

2.6.1 Deposit:A total deposit of Tk.91 Crore in June 2011. Endeavor is underway for augmenting low cost deposit by accommodating good customers at competitive price. For healthy growth of business JBL puts emphasis on no cost and low cost deposit all the time. A number of savings schemes are in place for mobilizing long term deposits which can be planned to be invested in term loans in-the area lease finance, project finance and consortium finance with a view to having better yields. JBL's such move will motivate the people to have good savings habit, as well. The position of deposit mix of the Bank as on 30.06.2011 is depicted below:

Types of Deposit No. of A/C As on 30.06.2011

Amount of Deposit As on 30.06.2011

Current Deposit 1060 23658750.00

Bills Payable 400 10491312.00

Savings Bank Deposits 1841 46955992.00

Fixed Deposit 789 382093913.00

Short term Deposit 169 43163021.00

Other Deposit Under Scheme 759 23447367.00

Special Savings Deposit Scheme 4197 374697442.00

Total Deposits 8815 904507797.00

0

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

450000000

Types of Deposit

Am

ount

of D

epos

it

No. of A/C As on 30.06.2011 Amount of Deposit As on 30.06.2011

2.6.2 Current Account:Most businessmen maintain current deposit accounts in order to make their daily business activities. This accounts funds change most frequently than any other accounts because customers use to withdraw and deposit funds in regular basis. JBL current account meets the needs of individual and commercial customers through the schedule benefit. A Current Deposit Account may be opened by individual, firm, company and club, association, body corporate etc.

I. Funds in the Current Deposit Account is payable on demand.II. No interest is payable on balances of Current Deposit Accounts.

III. Current Deposit Account may be opened with a minimum initial balance of Tk.5,000/-IV. Minimum balance to be maintained in the account is Tk.1,000/-V. Customer willing to open Current Deposit Account shall fill up the Account Opening

Form (AOF) applicable to him/ her and Specimen Signature Card (SS Card). The customer will sign in the space provided under “Yours faithfully” and on the specimen signature cards.

VI. In case of proprietorship and partnership firms the relevant account opening form is to be filled in and signed by the proprietor/ partner in their individual capacity in the space provided under “Yours faithfully” and on the specimen signature card in their official capacity.

VII. In all other cases including companies etc. the persons opening the account shall fill in the relevant Account Opening Form and sign the Form in the space provided under “Yours faithfully” and in the specimen Signature Card in their official capacity.

VIII. Introduction of acceptable clients to be obtained as per guidelines.IX. The Manager’s approval for opening account shall be obtained by the concerned staff

member. X. Signatures of the account holder shall be admitted by affixing the stamp “Signature

admitted” and signing by the authorized officer. The introducer’s signature shall be verified by affixing the stamp “Signature verified” near the signature by authorized officer.

XI. Blank space of the Specimen Signature Card should be closed by drawing parallel lines.XII. The particulars of the Account Opening Form shall be entered in the Account Opened

and Closed Register as per sequence provided by the computer system.XIII. The customer shall be provided with Deposit Slip in corporating the Account Number

and be advised to make the initial deposit in the account. The amount of initial deposit shall be entered in the Account Opening Form.

XIV. Cheque Book shall be issued on request on completion of all formalities including initial deposit. Cheque series to be entered in the Account Opening Form at the bottom right and authenticated by authorized officer.

XV. After posting of all particulars of the account including cheque series, one authorized officer shall check/ verify the same in the computer screen and record it in the form with signature.

XVI. Manager/ Authorized Officer shall apply sufficient intelligence and common sense to ascertain genuineness of the account holder. No account shall be opened without approval of the Manager.

XVII. Clear instruction regarding operation of the account shall be noted on the Account Opening Form and Specimen Signature Card especially in respect of death of inability of the account holders, or the person operating the account. The account holder shall confirm the instructions under specimen signature.

XVIII. An indemnity shall be obtained from the customer if he/ she signs in language other than English/ Bengali.

XIX. Illiterate persons shall be discouraged to open Current Account. If opened withdrawal shall be allowed on personal appearance of the account holder.

XX. The account opening form shall be sent to the respective computer terminal for posting and S.S. Card shall be retained serially in the S.S. Card Box under custody of Cheque Passing Officer.

XXI. One of the photographs of the Account Holder is to be pasted with AOF and another one with S.S. Card. AOF to be retained in serial order in Pasting File.

XXII. A letter of thanks to be sent to the account holder as well as to the introducer.XXIII. All new accounts opened during the day shall be personally checked by the Manager at

the close of business of each day.XXIV. Checking officer shall particularly see the introduction, initial deposit in cash or

cheque, nature of business of the account holder, Trade License, Partnership Deed/ Memorandum of Articles of Association, Resolution etc.

XXV. Similar Accounts should be noted in the AOF and care should be taken while making posting of transactions in such accounts.

XXVI. The Computer Program used by bank shall provide reference of clients. Branch Manager must ensure that their computer system provides reference of client.

XXVII. Classified Deposit Ownership Program to be maintained in the Computer System for facilitating periodical returns to Bangladesh Bank.

XXVIII. Bank shall provide monthly statement of account to clients as per computer system of the branch.

XXIX. If minimum balance of the account falls below Tk.2,000/- once during the half-year, incidental charge will be recovered as per Head Office Circular.

XXX. Bank at its discretion may close any account with prior notice to the account holder.XXXI. In case of closure of account by the account holder, branch shall recover closing

charges as per schedule of charges.

2.6.3 Short Term Deposit Account:

Deposits held in this account are payable on short notice. Normally corporate bodies, bank and financial organizations invest their funds temporarily. Now-a-days, private individuals having sound financial means also open this type of deposit accounts. The following rules shall apply:

I. Deposits held in STD Account are payable in 7 (Seven) days notice.II. Cheque books may be issued to account holders for withdrawal of funds.

III. Repeated withdrawal without notice shall be discouraged.IV. Interest is payable on balance held on daily product basis as per computer program

used by bank.V. For opening STD Account, AOF used for Current Deposit Account shall be used.

VI. Other formalities are similar to Current Deposit Accounts.VII. Minimum balance requirement for accruing interest is Tk.100, 000 (Taka one lac)

only.

2.6.4 Savings Account:

It is a sound savings for retail customer. Savings bank deposit is popular account maintained in banks. The bank provided Debit card facility for every savings account holder. Thus the account holder can withdraw money from any ATM booths available in the country. Any Person or Persons of more than 18 years having sound mind can open and operate this account singly or jointly. In case of a person below 18 years, a guardian can open and operate this account on his or her behalf. Clubs, Societies, Sole proprietorship firm, Partnership firms, Limited companies either public or private and other similar organization are eligible to open such account.

I. Savings Bank Account may be opened in the name of adult individual who are mentally sound and also jointly in the names of two or more persons payable to either or both or all of them or to the survivor or survivors.

II. Savings Bank Account may be opened in the name of a minor also.III. Saving Bank Account may be opened in the names of clubs, societies, association and

similar institutions and even by government and semi-government offices.IV. Account shall be opened with at-least a minimum initial deposit of Tk.1,000/-.V. Interest at the rates fixed by Head Office from time to time is applied half-yearly on

the balances held on daily product basis. Now its interest rate is 5 %.VI. Not more than one account is allowed to be opened in the same name. But this will

not be applicable to parents willing to open more than one account in his/ her name in respect of each minor child.

VII. Savings Bank Account shall not be allowed to be overdrawn under any circumstances.VIII. Account opening formalities like Current Account should be followed.

IX. Savings Bank Account should not be allowed to be operated like Current Account

X. Not more than 25% of the balance can be withdrawn without 7 days notice. Withdrawals in the account shall be allowed twice in a week.

XI. No interest shall be paid to such accounts in the month for violation of the above rules.

XII. Bank shall provide monthly-computerized statement of accounts to account holders instead of passbook.

XIII. Bank may at its discretion close any account with prior notice for repeated return of cheques due to insufficient balance.

XIV. Bank may recover charges up to a maximum of Tk.100/- per instances of cheque return.

2.6.5 Fixed deposit:

JBL offers fixed deposit for different interest rate for different period of time. In the receipt holders name and other particulars are kept as secrete documents on the bank. In the documents the name of nominee is also incorporated.

If any holder of the receipt wishes to en cash receipt before the maturity the bank usually do not pay the interest in the same rate but pays a lump sum amount of interest to the FDR holder.

Features- Interest is compounded once a quarter - Loan may be allowed up to 80% of the deposited amount under lien. - Excise duty and source tax etc. are deductible from the depositor profit. Interest rate:1month and less than 3monthes- 10%3monthes and less than 6monthes- 12%6monthes and less than 12monthes- 12%12monthes and Above- 12%

2.6.6 Monthly Saving Scheme (MSS):

Monthly saving scheme is a nature of time deposit and it was introduced in 1983. According to this scheme the investor was required to deposit a fixed amount of money per month Tk. 500/- Tk. 10000/- for a period of 5 years and 10 years. Profit on the invested amount is compounded at the rate of 12.42% for maturity. But the profit rate often varies as the bank follows Islamic shariah Banking Law. [Approximate amount shown in the following table

Table:B.4 Monthly Savings Scheme of Jamuna BankLtd.

Monthly Installment

Maturity Amount After

Maturity Amount After

Maturity Amount After

Amount 5 Years 8 Years 10 Years

500 42300 81500 117900

1000 82600 163000 235800

1500 123900 244500 353700

2000 165200 326000 471600

3000 247800 489000 707400

5000 413000 815000 1179100

10000 826000 1630000 2358200

There are so many different types of deposit schemes are also available in Jamuna Bank Limited, Naogaon Branch. They are given below

Scheme Name Monthly installment Amount

Maturity Period

Pension Deposit Scheme

Marriage Deposit Scheme

Education Deposit Scheme 800-4000 1 Years

Lakpoty Deposit Scheme 975-2360 3-6 Years

Millionaire Deposit Scheme

4500-23600 3-10 Years

Katipoty Deposit Scheme 10525-232395 3-20 Years

There are some Special Deposit Under Scheme. They are

Name of Scheme Maturity Period

Double Growth Deposit Scheme 6 Years

Triple Growth Deposit Scheme 9 Years

SWOT Analysis

3.1 SWOT Analysis of JBL :

STRENGTHS WEAKNESSES • Experienced top management. • Marginal capital adequacy .

• Satisfactory capital base. • Exposure to large loan-

• Low infection in loan exposure. • Excessive dependency on term deposits.

• Prospective IT infrastructure. • Weak fund management.

• High cost of fund.

• Islamic Branch funds are not ring fenced.

OPPORTUNITIES THREATS• Regulatory environment • Increased competition in the market for

favoring private sector quality assets.

development. • Supply gap of foreign currency.

• Credit card. • Over all liquidity crises in money market.

• Small and medium enterprises.

Overall Banking System

4.1 Loans and Advances:

Though there was an unfavorable business environment due to political turmoil throughout the year JBL was in constant efforts to explore different areas of credit operation and could raise the credit portfolios to Tk.100 Crore in June 2011 with an increase of Tk.80 Crore (25%) over that of the preceding year. Its credit facilities were concentrated on Trade Finance, Agriculture and related sector, project finance, wholesale and retail trade, transport sector, hospital & diagnostic centers and syndicate financing for big projects, capacity additions to the manufacturing sector and structured financing for developing infrastructure of the country. Initiatives are underway for helping small and medium entrepreneurs in the ventures for which, in JBL, we are developing SME credit products and strategies. JBL has also increased lending activities to small consumers through Consumer Credit Scheme.

Types of Loan No. of A/C As on 30.06.2011

Amount of Loan As on 30.06.2011

Cash Credit 130 225978961.00Lease Finance 17 62394434.00Loan General 3 148780383.00House Building 2 18795423.00Overdraft 241 94638063.00Retail Credit 20 3610782.00SME 32 15964877.00Others 9 430126945.00Total 454 1000289868.00

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No. of A/C As on 30.06.2011 Amount of Loan As on 30.06.2011

LENDING RATES OF VARIOUS TYPES OF LOANS AND ADVANCES

No. Particulars Range01 Term Loan to large and medium Scale Industry 17.50% (Maximum)02 Working Capital to large and medium Scale Industry 16.50% (Maximum)03 Trade Financing 16.50% (Maximum)04 House Building 16.50% (Maximum)05 Consumer Credit 15.50% ( Mid-Rate)06 Overdraft against -

a) FDRb) Schemes Depositc) FDR/ Other Deposit instruments issued by other

bank

3.50% above FDR15.50% ( Mid-Rate)15.50% ( Mid-Rate)

07 Others 15.50% ( Mid-Rate)

SOME POPULAR CREDIT SCHEME:Depending on the various nature of financing, all the lending activities have been brought under the following major heads:

4.1.1 CC Hypo (Cash Credit Hypothecation)Cash Credit allowed against hypothecation of an asset is known as Cash Credit (Hypo) of goods on which charge of lending bank is created.For Cash Credit (Hypo) Bankers take following precaution:

· The banker carefully verifies the stocks of the hypothecated assets and their market price.

· Obtains periodical statement of stock duly signed by the borrower.· Ensure dial docks are duly insured against fire, burglary with bank clause.· Obtains sufficient collateral securities.· Identify that whether the goods are ready saleable and whether they have

good demand in the market.· Ensure the borrowers trustworthiness.

4.1.2 CC Pledge (Cash Credit Pledge) :Cash Credit allowed against pledge of goods is known as Cash Credit (Pledge). For Cash Credit (Pledge) the borrower pledges his goods to the banker as a security

against the credit facility. The ownership of pledge goods remains with the pledged. The bank remains the effective control of borrower but under lock and key of the bank stored in the custody of borrower but under lock and key of the bank. Banks appointed guards are taken care of those goods round the clock. The banks delivered the pledged goods to the party by turns against payment.For Cash Credit Pledge following points are taken into consideration before allowing:

· Whether the quality of goods is ascertained.· Whether the goods are easily saleable and those goods must have good demand in the

market.· The quality of goods is ensured. The goods cannot be perishable and will not deteriorate

in quality as a result for short and long duration.· The borrower has the absolute title of goods.· The prices of the goods have to steady and are not subject to violent change.· Goods should be stored in the presence of a responsible bank office.· Ensure that stocks are duly insured against fire, burglary, with bank clause.· Stocks must be invocated regularly by responsible bank office.· The locks of the store are scaled and keys are kept in the bank.

4.1.3 Overdraft:

The overdraft is always allowed on a special A/C operated upon cheques. The customers may be allowed a certain limit up to which he can overdraw within a specific period of time. In an overdraft A/C withdrawal and deposit can be made any number of times within the limit and prescribed period. Interested is calculated and charged only on the actual debit balances on daily product basis.

Overdraft are three types1. Temporary overdraft (TOD)1. Clean overdraft (COD)2. Secured overdraft (SOD)

4.1.4 Temporary overdraft (TOD):Temporary overdraft (TOD) is allowed to honor cheques which is future dated for the valued client without any prior arrangement. This kind of facilities is provided for short time.

4.1.5 Clean overdraft (COD):Sometimes Overdrafts are allowed with no other security except personal security of borrowers.

4.1.6 SOD Secured overdraft (SOD) :When Overdrafts are allowed against security is known as secured overdraft (SOD)Purposes:

· To businessman for expansion of their business.· To contractors and suppliers for carrying construction works and supply orders.

Securities:· Lien on fixed/term deposits.· Shares/Debentures/Protiraksha Sanchay Patra· Insurance Policy.· Mortgage on real estates and properties.

Interest Rate: 15.50 % per annum

4.1.7 Payment against Document (PAD) :Payment made by the Bank against lodgment of shipping documents of goods imported through L/C falls under this head. It is an interim advance connected with import and is generally liquidated against payments usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category "Commercial Lending".

Eligibility: PAD is generally granted to importer for import of goods.Interest Rate: 15.50 % per annum

4.1.8 Internal Bills Purchased (IBP) :This kind of arrangements is allowed for purchase of internal bills. Some times Contractors need money to his liquidity problem. To avoid thus kind of situation they want to take loan against their future dated cheque.Eligibility:Internal Bills Purchased is usually provided for future dated cheque against some service charge before 21 days of the maturity date.

4.1.9 Loan against Imported Merchandise (LIM) :This is as similar as CC Pledge. But these loans are provided to the selected customers with internal contract.

Eligibility:This loan is only for old and some special customers.

4.1.10 Loan against Trust Received (LTR):Under this arrangement, credit is allowed against trust receipt and the exportable goods remain in the custody of exporter but he is required to execute a stamped export trust receipt in favor of the bank. Where the declaration is made that he holds Purchased with financial assistance of the bank lit trust for the bank.

Eligibility:LTR is generally granted to exporter for exportation of goods.Interest Rate: 15.50 % per annum.

4.1.11 Local/Foreign Documentary Bills Purchased (LDBP/FDBP) :Under this arrangement, credit is allowed for exporter for or exportable goods. Banks provide all the agency commission. Its pay back period is 21 days.

Eligibility:LDBP/FDBP is generally granted to exporter for exportation of goods.Interest Rate: 15.50 % per annum

4.1.12 Letter of Credit:Issuing letter of credit is one of the important services for JBL. A letter of credit is a document authorizing by the bank for a specific amount of money. Two types of L/C are provided by JBL.

Demand Loan ABP Back T o Back L/C)Demand Loan ABP (Deferred Payment, L/C)

Eligibility:This facility is given to the exporter/manufacturer /producerTerms and Conditions:

· It should stipulate the name of the loan/credit/grant.· It should bear the name of the designed bank.· Item mentioned in the LCA form must contain with the permissible item.

4.1.13 Loans (General):When an advance is made in a lump sum repayable either in f ixed monthly installment or in lump sum and no subsequent debit is ordinarily allowed except by way in interest and incidental charges etc. This is loans (general). Loan is allowed for a single purpose where the entire amount may be required at a time or in a number of installments within a period of short Spam. After disbursement of the entire loan amount, there will be only repayment made by the borrower. Loan once repaid in full or in part cannot be drawn again by the borrower. Entire amount of the loan A/C in the name of the customer and is paid to hen through his SB/CD A/C. Sometimes loan amount are disbursed in cash.This loan is repayable within few months or few years.Securities:1. Lien on fixed/term deposits.2. Shares/Debentures/Protiraksha Sanchay Patra.3. Insurance Policy4. Mortgage of Real estates and properties5. Hypothecation of stock/Stock/Machinery. Interest Rate: 15.50 % per annum

4.1.14 Lease Finance:Jamuna bank Ltd. is the first private commercial bank , in Bangladesh who introduced lease finance facilities for funding requirement of valued customers & growth of their business.Lease Items:· Vehicles like luxury bus, Mini bus, Taxi Cabs Cars, Pick-Up Van Etc.· Factory equipment.· Medical equipments.· Machinery for agro based industry.· Construction and office equipment.· Sea or river transport and computer for IT education center.

Security /Collaterals:

The following securities are acceptable.· Ownership of leased assets before the period of loan adjustment.· Collateral securities in the form of land & building/Fixed Deposits/other cash

collateral /Wage Earners Development Bond having liquidation value covering at least 100% amount of finance.

· Deposit of A category shares, National Savings Certificates, ICB Unit Certificates, assignment of life insurance policies, Bank Guarantee also be allowed as collateral securities.

· Creation of charge of axed assets of file existing industrial units requiring BMRE. Creation of charge on the existing vehicle will also be acceptable as securities.

Charges :Bank charges are modest and competitive.

Lease Deposit:Before disbursement of lease finance, the lessee shall have to deposit 3 months rentals in advance, which will be adjusted at the end of the lease period.

Grace Period:For capital machinery and equipment, maximum grace period of 6 (six) months may he allowed for installation/commercial production.

Payment Date:Rental payments shall be made every month and there shall be three payment dates as detailed below.If Lease executed.Between 1st to 10th ………5th of subsequent monthsBetween 11st to 20th……15th of subsequent monthsAfter 20th ………………25th of subsequent months.

Insurance Coverage:The vehicle /Equipment /Lease asset shall have to be covered by a comprehensive insurance policy throughout the whole lease term at lessees own cost in the name of Jamuna Bank Limited. The premium shall be on account of lessee.

Repair and Maintenance of Leased items:The lessee is obliged to maintain the vehicle/Equipment in good working order and is solely responsible for any loss or damage as long as it is in his possession. Repair and maintenance cost for taking care of normal wear and tear and keeping it in good running condition during the lea-se, pen-0d shall' be the responsibility of lessee.

Transfer price/Lease Renewal Rental:On final adjustment of the lease finance, the lessee may have an option to purchase the equipment at 5% of the lease finance. Besides the above option, tile lessee may renew the lease on year-to-year basis or return, the equipment to the bank.

4.1.15 Consumer Credit Scheme :Consumer credit is recently new field of micro credit activities; people who have limited income can avail of this credit facility to buy any household effects including car, computer, household and other commercial durables. JBL plays a vital role in extending the consumer credit.Eligibility:The borrower must be the employee of the following organization.

· Government Organization· Semi- Government Organization· Multinational Organization· Bank and insurance Company

· Reputed Commercial Organization · Professionals

Nature:Mid term Micro CreditInterest Rate: 15.50 % per annum

Terms and Conditions:· Client will procure the specified articles from the dealer/agent /shop

acceptable by the Bank.· All of the papers /cash memo etc. related to the procurement of the goods will be in

the name of bank ensuring ownership of the goods. The ownership will be transferred in the name of the client after full adjustment of Banks due.

· The clients will have to bear all the expenses of license, registration and insurance etc.· The clients will have to bear the cost of repair and maintenance of the acquire

articles.

4.2 International Trade Services:

4.2.1 Import Business:The total import business handled by the Bank in June2011 was Tk.92.25 million compared to Tk.72.50 million in the preceding year registering a rise of Tk.19.75 million being 27.4 percent. A sizeable L/C's were also opened by the Bank in the year under review. The import items included industrial raw materials, machinery, consumer goods, fabrics, accessories etc.

4.2.2 Export Business:In Jamuna Bank Ltd. Naogaon Branch, there is export business.

Procedures for opening accounts:Opening account with a bank is the way of creating a banker customer relationship. In other words, it is a contract between banker and customer. With this contract, bankers enter into certain obligations and responsibilities.

Proper introduction serves as a precaution against fraud and forgeries and safeguard against inadvertent overdraft to bank. Obtaining proper introduction may absolve the banker from the charges of negligence for conversion. So, while opening a new account, emphasis would be given without exception to introductory reference and inquiry. The following instruction to be followed while opening account: - Introduction of Account to be obtained from a respectable client acceptable to bank.

I. The introduction shall be obtained in writing in the respective column of Account opening form.

II. For opening savings bank account of individual either singly or jointly, passports and identity cards may be accepted for introduction, but subsequently proper introduction may be obtained.III. Introduction of Current Account by members of the staff may be allowed but shall be discouraged as far as possible.IV. Current Account shall preferably be introduced by another Current Account holder acceptable to bank.

V. Introduction of Account holder of other branch may be accepted with caution. In that case the introducer’s signature must be verified by authorized officer of that branch and authenticated by a forwarding letter.VI. Photographs of account holder must be attested by the introducer.VII. Letter of thanks is issued to introducer in Bank’s standard specimen.

Closing an Account:

During the study we were taught how to close a bank account before maturity. In order to close an account before maturity the holder has to place a written application to the bank. After receiving the application the bank will deduct service charge at an amount necessary for the respective account as closing fee from the balance and rest of the money is given to the account holder.

When Bank Closes an Account:

The relationship between bank and his customer is a contractual one and may be terminated by either of them. Bank closes an account in the following situations: -If a customer places written application to the bank to close his account.

a. If the customer does not properly follow the rules and regulations necessary to operate his account.

b. If the bank is notified the message of death of a customer. c. If the bank receives a notice regarding the insanity of his customer. d. If the bank receives a garnishee order from court. e. Others.

Receipt of Cash:

Cash may be deposited either by deposit Slips for SB/ CD/ CC accounts or by other credit voucher like single credit voucher, pay order/ Draft/ T.T. application forms. Branches shall ensure the following:

I. Cash receiving officer shall check the deposit slip/ credit voucher/ application form as to its title of account, number and amount in words and figures.

II. The cash currency notes shall be counted physically /by cash counting machine as per denominations of the currency notes on the back of the voucher /deposit slip. The officer will enter the particulars in the cash Receiving Register and sign on the related deposit slip/voucher and affix "Cash Received" Stamp with date. He/she shall write the amount in words and figures in red ink across the deposit slip/voucher/ application form in token of receipt of the money. He /She shall send the register along with the deposit slip/voucher for signing on the same and authenticating the receipt in the register by the in-charge of the department.

III. The officer in-charge shall retain the original of deposit Slip and other vouchers and send them to respective desk for postings/actions. The duplicate voucher (counter foil) shall be handed over to the depositor/client.

IV. At the close of business the cash receiving officer shall add all the entries in the register and if agreed with the actual cash received by him, shall hand over the register for checking by officer-in-charge.

V. Receiving Cash officer will hand over the cash to the entire cash in-charge duly checked by him.

Payment of Cash:

Cheques, Cash Debit Vouchers, Fixed Deposit Receipts, Monthly Term Deposit Receipts, Bearer Certificates of Deposit, Demand Drafts, may be placed for payment at the counter by clients, beneficiaries and various departments for encashment. Branches shall ensure the following:

I. The instrument is checked for any apparent discrepancy and evidence of posting and cancellation.

II. Specimen Signature of cancellation officer shall be available with cash paying officer for convenience of payment.

III. On being satisfied, the cash paying officer shall count cash for payment and the denominations of notes are written on the reverse of the instrument invariably.

IV. Signature of the bearer is obtained on the reverse of the instrument and compared with the signature already obtained from the bearer while presenting the instrument.

V. If the presenter is found to be the same person, cash is handed over to the bearer/presenter.

VI. "Cash Paid" Stamp is affixed on the face of the instrument and signed by the cash paying officer.

VII. Particulars of the instrument are entered in the cash payment register.VIII. Paid instruments are preserved with the cash paying officer.

IX. At the close of bank hour, the amounts entered in the cash payment register is totaled. The total must agree with the totals of cash paid.

X. The total is written in the cash payment register in words and figures.XI. The officer-in-charge of cash department shall check the entries and instruments to

ascertain that the payment has been made correctly and shall release the instruments from cash payment register by his initials against each entries in the cash payment register.

XII. The officer-in-charge also checks and signs the entries.XIII. The cheques/instruments are sent to accounts department for stitching and

preservation.

4.2.3 Remittance, Bills and Endorsements.

Payment of Telegraphic Transfer:

Receipt of message and verifying the below condition then payment

I. The in-charge and the manager verify the test message.II. If the test-number, payees A/C number and title of the A/C does not agree a telex is

sent to the branch concern asking them to rectify the message with correct test number and other particulars.

III. If the test-number agrees and all other information is correct, test agreed seal is affixed on the message and signed by the officers.

Where the payee does not have any account in the drawee branch a Pay Order/ Pay Slip is issued in favour of the payee an delivered to his banker on the same day.

Issue and Payment of Pay-Orders:

I. The customer is asked to fill up the application that is treated as a credit voucher for: Bills Payable Account-Pay-Order issued.

II. The voucher is given to the customer to deposit the cash with the cashier.III. The cashier receives the cash and delivers the vouchers to Remittance Department

against initials in his book.IV. Pay-Order is prepared and entered in Pay-Order Issued Register. The amount of the

Pay-Order is protect graphed.V. The Pay-Order number is written on the vouchers.

VI. Pay-Order Register and the vouchers along with the register are sent to the officer-in-charge for checking and signature.

VII. After officer-in-charge's signature, the pay-order and the voucher are sent to Manager/Second officer for second signature.

VIII. Acknowledgement of the purchasers of P.O. shall be obtained on the back of the counterfoils of the instruments.

IX. The vouchers are sent to Account Department.Payment in cash: When pay-order is presented for encashment similar procedure is adopted as explained in the foregoing for payment of Demand Draft in cash. It also paid by clearing /transfer delivery /cash transfer Procedure is similar to that explained in paras of Payment of DD through clearing transfer delivery and cash transfer.

Balancing of remittance accounts:

I. D.D. Payable, T.T. Payable, P.O. issued, D.D. Paid Without Advice accounts should be balanced on monthly basis.

II. The balances are agreed with the figures of concerned Subsidiary Accounts.Issue of duplicate pay-order:

I. In addition to obtaining application from the purchaser, a confirmation should also be obtained from the beneficiary to the effect that the instrument has been lost or not received by him/them.

II. Head Office is informed regarding loss of the P.O. for circulation to the branches.III. An indemnity bond affixed with special adhesive stamp of Tk.150/- is obtained from

the applicant.IV. A note to this effect is made on the original application form and the Pay-Order

Issued Register.V. The indemnity bond is kept in the "Indemnity Bonds for duplicate instruments issued

file."VI. The Pay Order is issued marked “Duplicate” in Red Ink.

Issue of duplicate demand draft:

I. On receipt of application from the purchaser of the draft regarding its loss and issue of duplicate one, the signature of the applicant is verified from the original application.

II. Head Office is informed of the loss of DD immediately and the drawee branch is informed of the loss of draft number and requested to exercise caution by letter or telex. The telex charges if incurred are recovered from customer.

III. On receipt of confirmation from the drawee branch that the draft is still outstanding in their books and that caution is being exercised by them, a duplicate draft is issued to the purchaser after obtaining an Indemnity Bond in Bank’s prescribed format.

IV. The draft is issued marked "DUPLICATE" in red ink, repeating the original printed number, striking out the present printed number and giving the original controlling number.

V. A note to this effect is made on the original application form and the Drafts Issued Register.

VI. Drawee branch is advised regarding issuance of the duplicate draft.VII. The indemnity bonds are kept in "Indemnity Bonds for duplicate instruments issued

File."

Cancellation of pay-order:I. On receipt of application along with pay-order for its cancellation, the signature of

applicant is verified from the original application form.II. Before the pay-order is cancelled it is ascertained that no duplicate pay-order has been

issued. The pay-order is cancelled and kept with the debit voucher.Cancellation of demand draft:

I. On receipt of application along with the Demand Draft for its cancellation the signature of the applicant is verified from the original application form and the genuineness of the Demand Draft is examined.

II. Before the draft is cancelled it is ascertained that no duplicate draft has been issued.III. The draft is cancelled bearing out the signature thereon, and a note to this effect in red

ink is made in the original application form and the Drafts Issued Register and initialed.

IV. The cancelled draft is attached with the debit voucher.V. The branch concerned is advised to this effect with instruction to send IBCA for the

cancelled Demand Draft.VI. On receipt of IBCA the entry in Sundry Assets Account-DD cancelled is reverse

Check Dishonored by Bank:

During the internship program, I was taught how a check is dishonored by bank. The statutory duty of a bank is to honor his customer’s check. But a bank can dishonor a check for various reasons. Some of the reasons for that a bank dishonors his customer’s check are stated below- If

a. the customer’s account position is not okay, that is if the amount of money mentioned in the check is greater than customer’s deposit.

b. the check is torn. c. the check is post dated or a stolen checks. d. the customer’s signature given on the check is a forged one or does not tally

with his specimen signature kept in bank custody. e. the check is not submitted to the customer within banking hour. f. the duration of issuing the check is more than 6 months. g. Other

Customer Services:

Customers check collection

Collection of bills for public or private organization

Pay order

Other bank

Financial Performance

5.1 Performance Overview of the Bank:

Jamuna Bank Ltd, since incorporation as a private commercial bank in the country from 2001, continued to maintain its stable position in the industry. The bank has been able to show a strong performance in business and financial accounts. With better customer service, fulfillments of commitments to corporate social responsibilities, ensuring sound corporate governance, bank consolidated a solid presence with the customers and general public and in the industry. During the year under review, significant improvement was evident in deposit mobilization, advance portfolio augmentation and recovery of non performing loan. Foreign trade, in terms of import, export and inward foreign remittance have also shown noteworthy growth in the year 2010. Profit for the year has steadily improved compared to the profit of the preceding year. Expansion and renovation of branch, soft launching of ATM services, Debit Card Issuance and bringing more branches under online facility are among the other highlights of activities of bank.

5.2 Performance at a Glance: Fig. in Million Taka

Particulars 2011 2010 2009 2008 2007Authorized Capital 4000.00 4000.00 1600.00 1600.00 1600.00Paid up Capital 1,313.27 1225.71 1072.50 429.00 429.00Reserve Funds 1,131.07 651.92 629.33 487.46 245.65Tier I Capital (Capital & shareholder’s equity)

2,160.73 1651.58 1562.47 807.14 607.32

Tier II Capital 313.32 221.14 139.36 109.32 67.33Deposits (Core & Bank) 27,307.94 20924.02 17284.81 14454.13 10450.16Advance 21,036.86 16617.45 12796.63 11011.83 6722.80Investments 4,238.63 5390.03 2552.67 2037.84 1163.70Import Business 30,311.71 22191.84 15457.66 12151.90 7923.90Export Business 18,617.43 13990.33 11583.64 6521.80 4790.80Total Income 4,074.39 3102.99 2749.90 1727.20 1397.27Total Expenditure 3,034.19 2278.79 2048.58 1307.26 1088.44Operating Profit 1,040.20 824.20 701.32 419.94 308.83Profit before Tax 865.82 405.04 499.97 363.31 273.70Profit after Tax 479.44 89.11 253.40 199.82 155.95

Payment of Allowance

Loan and advances

Examination fee

Salary payment

Pension (Board)

Fixed Assets 609.02 174.40 137.36 106.46 97.99Total Asset(Excluding Contra)

31,646.63 26405.40 20157.02 16863.77 13491.52

Contingent Liabilities & Commitments

9,169.47 6409.26 6574.38 5445.68 2903.96

No. Branches 39 35 29 23 19No. of Employees 935 861 631 525 447No. of Correspondents 715 715 643 390 333Income from investment 666.15 474.48 255.66 126.30 80.44Earning per Share (Taka) 38.21 8.04 31.94 46.58 36.35Net Assets per Share Taka (NAV)

164.53 135.14 145.68 188.14 141.57

V.3Liquidity Statement :

LIQUIDITY STATEMENT

(Asset and Liability Maturity Analysis)

FOR THE YEAR ENDED 31ST DECEMBER, 2008

Particulars Up to 01 month

1-3 months 3-12 months

1-5 years

More than 5 years

Total

Assets:

Cash in hand 1,864,959,818

- - - -

Balance with other banks and financial institutions

393,451,681

,1100,000,000

850,000,000

- -

Money at call on short notice

50,000,000

- - - -

Investment 4,198,625,873

- - 40,000,000

Loans and Advances 1,010,751,356

3,742,783,418

9,894,012,811

5,265,293,827

1,124,019,600

Fixed assets including premises, furniture and fixtures

- - - 514,353,906

94,422,259

Other assets 64,878,844

331,469,009

7,960,523

1,099,399,696

-

Non-banking assets - - - - -

Total Assets 7,582,667,572

5,174,252,427

10,751,973,334

6,879,294,307

1,258,441,859

Borrowings from Bangladesh Bank, other banks, financial

- - 396,123,775

- -

institutions and agentsDeposits and Other Accounts 6,815,950,

834

9,930,102,918

6,065,581,430

364,500,548 4,131,800,411

Other liabilities 26,029,758

- 809,170,231

946,637,751 -

Total Liabilities 6,815,980,592

9,930,102,918

7,270,875,436

1,311,138,299 4,131,800,411

Net Liquidity 740,686,980

(4,755,850,491)

3,481,097,898

5,568,156,008 (2,873,358,552)

5.4 Key Figures- 2011 :JAMUNA BANK LTD.Establishment: 03 June, 2001.Branches : 67Employees : 1720Customers : 5,000000.

Findings & Data Analysis

6.1 Findings:

They have not sufficient efficient employees to operate different department in the bank. So they should increase efficient employees in different department.

Staff meetings and departmental meetings at the branch level does not held or very few which is very essential to develop service quality as well as problem solving. But this practice is very few. So It may create major problem in future.

The bank is operated through 67 numbers of branches that are very few. So few number of branches are a barrier to improve bank growth.

ATM booth service is an online popular service. The bank’s online service is very poor. So if they want to survival in competition market they should introduce online service as early as possible.

Technology that JBL is using for their banking system is not up dated. Now there

is some international bank in Bangladesh, they are very fast and very up dated. JBL is losing their clients because of lack of technology.

The management of AIBL takes no risk when they give loans to their clients. They are very slow in decision-making. They sometimes fail to take the current opportunities for this slow decision making process.

The Jamuna Bank is too much centralized. For each and every work branch office has to get permission from the head office. The head office tightly controls each and every branch office. This dependency on head office causes slow down their activities.

6.2 Data Analysis:

Respondents answers to Naogaon Branch regarding client’s attitude evaluation:

Table 1. Share of Mind (Figure Mentioned Bank):

In the following table, different respondents mentioned different bank’s name while asking them to mention a bank’s name that comes to their mind first in case of taking loan and other services.

Source: Compiled data from Field Survey.

From the table, it is known that 26.67% clients mentioned Prime Bank Ltd., 23.33% respondents mentioned the name of Jamuna Bank Limited, 20% respondents mentioned Dutch-Bangla Bank Ltd. and the rest mentioned other different bank’s name. So, according to the client’s preference Jamuna Bank Limited is in the 2nd position in case of taking loan and other services. The bankers of the Jamuna Bank Limited need to find out the reason behind the bank being in 2nd position and need to be more focused to make the bank more reliable, customized and provide maximum satisfaction.

Name of Bank No. of Respondents Percentages

Jamuna Bank Ltd. 7 23.33

BRAC Bank Ltd. 1 3.33

National Bank Ltd. 1 3.33

Prime Bank Ltd. 8 26.67

IFIC Bank Ltd. 4 13.33

Southeast Bank Ltd. 1 3.33

Mercantile Bank Ltd. 5 20

Uttara Bank Ltd. 3 10

Total 30 100

0

5

10

15

20

25

30

Percentages

Jamuna Bank Ltd.

National Bank Ltd.

IFIC Bank Ltd.

MercantileBank Ltd.

Name of Bank

The following graph showing the client’s preference towards banks:

Figure: Consumer’s preference towards bank

Table 2 Most of the Transaction Bank:

The following table shows the respondent’s transaction preference with the bank. Here, the respondents have said about their preference of banks in case of making transaction.

Name of Bank No. of Respondents PercentagesJamuna Bank Ltd. 7 23.33Prime Bank Ltd. 6 20

National Bank Ltd. 2 6.67Uttra Bank Ltd. 5 16.67Southeast Bank Ltd. 2 6.67IFIC Bank Ltd. 4 13.33Mercantile Bank Ltd. 3 10BRAC Bank Ltd. 1 3.33Total 30 100

Source: Compiled data from Field Survey

02468

101214161820

Percentages

PrimeBankLtd.

NationalBank Ltd.

SoutheastBank Ltd.

MercantileBank Ltd.

Name of Bank

Most of the respondents opined that they use Jamuna Bank Limited for their transaction. 23.33% respondents said about Jamuna Bank Limited, 20% respondents said about Prime Bank Ltd, 16.67% respondents said about Dutch-Bangla Bank Ltd., 13.33% preferred IFIC Bank Ltd, 10% respondents said about Mercantile Bank Ltd, 6.67% respondents said about National Bank Ltd. and City Bank Ltd. and 3.33% respondents said about BRAC Bank Limited.

From this study it can be said that Jamuna Bank Ltd. is in a favorable position according to the respondent’s preference.

Respondent’s Opinion Considering Banking Attributes:

In this study it is found that consumers consider Interest rate, Client Service and transparency as the definitely important attributes in case of taking loan. Consumers gave highest weight on Interest rate with weighted average of 4.00 followed by 3.47 for Client service and 3.43 for Security & mortgage.Following table shows the importance of various banking attributes (Rating scale of 1 – 4, where 4 indicate definitely important and 1 indicates very poorly important attributes):Table 3. Attributes by Consumer Rating:

Attributes 4 3 2 1 Total Respondents

Average Weight

Interest Rate 30 0 0 0 30 4Transparency 20 5 3 2 30 3.43Client Service 20 5 5 0 30 3.47Security & Mortgage

17 7 5 1 30 3.33

Bank’s Environment

5 8 7 10 30 2.27

Period and installment

11 6 4 9 30 2.63

Time of process 9 8 7 6 30 2.67Technological support (ATM, Online Banking etc.)

9 15 3 3 30 3

Source: Compiled data from Field Survey

So, to provide better service and maximum satisfaction, these attributes need more attention to be improved.

Respondent’s opinion in favor of 4-point scale considering different banking attributes are shown in the following graph.

0

5

10

15

20

25

30

35

Inte

rest

Rat

e

Clie

nt S

ervi

ce

Ban

k’s

Env

ironm

ent

Tim

e of

proc

ess

Attributes

Tota

l Res

pond

ents

4 3 2 1 Average Weight

Figure: Importance of Attributes to Consumer.

Table 4 Ranking of The Banks: Considering banking attributes, the respondents have ranked the banks using four point scale where 4 = Best, 3 = very good, 2 = good, 1 = below average. In the following table the calculated weighted average of the different banking attributes for different banks are given on the basis of respondent’s opinion.

Bank’s Name

Jamuna Bank Ltd.

Prime Bank Ltd.

National Bank Ltd.

BRAC Bank Ltd.

Mercantile Bank Ltd.

Attributes

Bank’s Environment

2.87 3.37 3.03 2.93 2.90

Client Service

3.37 3.57 2.50 2.97 3.27

Trustworthiness

2.70 2.90 2.53 3.17 2.57

Accuracy 2.80 2.87 2.80 2.97 3.57Transparency 2.87 2.43 2.73 2.77 2.93Security & Mortgage

2.93 3.17 3.00 3.07 2.83

Period & 2.57 3.03 3.63 2.97 2.70

installmentInterest rate 2.93 2.60 2.40 3.27 3.20Time of process

2.80 2.53 2.93 2.40 2.40

Technological Support

2.43 3.03 2.67 2.87 2.97

Source: Compiled data from Field Survey

By analyzing the weighted average of different attributes rated by the respondents and comparing with other banks it is found that the performance of Jamuna bank ltd. is not so good and satisfactory. The bankers must put an eye to these attributes to be improved to get maximum satisfaction from the customers. According to the respondents, Prime bank Ltd. is the most rated bank. The maximum criteria of Prime Bank Ltd. have been achieved highest weight. Especially the attributes of Prime Bank ltd. – Bank’s environment, Client service, Security & Mortgage and Technological support having weighted average respectively 3.37, 3.57, 3.17 and 3.03 which is more than other banks including Jamuna Bank Ltd. National Bank ltd. is having highest weight 3.63 on Period and Installment and 2.93 on Time of process. BRAC Bank ltd. is having highest weight 3.17 on Trustworthiness and 3.27 on Interest rate. Finally Mercantile bank Ltd. is having highest weight 3.57 on accuracy and 2.93 on transparency.

Table 5. Consumer’s Opinion about Interest Rate

Source: Compiled data from Field Survey

0

10

20

30

40

50

High Medium Low

Interest Rate

No. o

f Res

pond

ents

(%)

No. of Respondents Percentages

Interest Rate No. of Respondents

Percentages

High 8 26.67

Medium 13 43.33

Low 9 30

Total 30 100

26.67% respondents said the interest rate of JBL is high, 43.33% said the interest rate is medium and 30% said interest rate is low. So it is found that most of the respondents consumer think the interest rate is medium in Jamuna Bank Ltd.[Note: The conductor use the table for data analysis and getting the findings are based on primary data. (Respondents answers through Questionnaire)]

Key Success Factors:

Provide quality services to match with requirements: Primary data are collected from the 30 respondents who are clients of JBL, Naogaon Branch enjoying loans and advances of JBL. Analysis of consumer attitude is the key to improve consumer satisfaction and understand their expectations, which eventually will lead to the achievement of organizational objectives and success in a more efficient manner. So, to hold this market the bank always tries to provide quality services that match the consumer’s requirement.Active promotional activities: The promotional activity of Jamuna Bank Ltd. Naogaon Branch is not strong because of identified that most of the respondents are not aware about many types of banking services, especially loan products. Only two or there types of loans are known by the respondents.

Hiring dynamic personnel:

The bank should hire more dynamic personnel, who are able to demonstrate, motivate and explain the feature of their product’s services.

More training facilities:More training should be conducted for the bankers to improve their analytical ability and professional standard regarding risk analysis and other tools and techniques in selecting the borrowers and analyzing the loan proposals.

Establishment of research and development cell:Interest income occupies the major part of the total earning of a bank and bank’s profitability mainly depends on interest earning capacity, so bank should establish a research and development cell for the purpose of the lending analysis and recovery of loans.

Flexibility in rules & regulations:

JBL Credit Department should reduce its complex and rigid rules and regulation. The prevailing procedures require many formalities and take many papers etc. in case of taking loan.

MANAGERIAL CONCLUSION AND RECOMMENDATION

7.1 Conclusion:As one of the commercial bank, Jamuna Bank Ltd. has to survive in this competitive environment. For this, the major task of the bank is to manage its assets and liabilities in an efficient way. To make the assets especially loan and advances, banks must have to perform well in this competition. Otherwise this loan default culture will never end.

Credit department is a crucial part for any commercial bank as it is the main stream to earn profit. The loan products have brought the unexplored area of the consumers to enjoy the benefits of bank finance. This group consists of the people who are employed individuals, self employed persons, and even businessmen. As the new entrants come to the market, competition gets intense.

Jamuna Bank Limited introduces a large range of products and services to the customers through its Credit Department and provides smooth services to them. So, operation and satisfaction of the customer is now in satisfactory level. However, it is clear from the study that JBL’s Consumer Credit Division provides very effective services to its customers and they are satisfied as almost all the clients responded positive to the bank’s performances. Yet, there exists some problems but if the division works with even more sincerely then it would be definitely better for the bank.

At the beginning the company does not expand the product for wide range of customer but now they are interested to expand it in wide range because of its demand and profitably. It also has a positive impact for other products of the bank. So, now they are providing more and more services to retain present customer and attract the new. They are trying to make a competitive cost by providing more benefits than the competitors. Government and the consumer rights organizations are getting more conscious and creating more pressure to them, the services are expected to be increase day by day.

Thus by providing these various services, Jamuna Bank Limited is playing a vital role in the banking system as well as in the economy of Bangladesh.

7.2 RECOMMENDATIONS:

From the study, consumer behavior analysis, its importance and its relation specifically towards Jamuna Bank Ltd, Naogaon Branch are understandable. Based on the findings and identified key success factors, some policy implications that are found goes for suggestion to Jamuna Bank Ltd. Naogaon Branch are mentioned as follows:

· From the findings it is found that the existing consumers of Jamuna bank Ltd. Naogaon Branch are mostly highly educated. For this reason the bankers need to be more careful to handle these customers. They need to be more strategic to know the clients expectation and their enquiries.

· Market is very competitive. It is very difficult to retain the existing customer of the bank. So the client can switch to another bank from this bank any time. Bank should fixed-up specific types of client strategy according to the different character of client.

· When determining the Share of Mind of the consumers in consideration with different bank preferences, it is known that the name of Jamuna Bank ltd. comes in second position. So the bank needs to get more attention to improve its services given to the clients. The bankers need to be more focused to make the bank more reliable, customized and provide maximum satisfaction than competitors. Promotion is very helpful for creating image in the market. With creative adverting and other promotional tools marketers should try to develop a distinctive image in the banking sector.

· As the respondents are the loyal clients of the Jamuna bank ltd. Naogaon branch, their most of the transaction occurred in this bank. Bankers should try to develop healthy relationship with these customers through proactive marketing approach so that these customers can bring more new consumers in the bank. Relationship will make the consumers to be with the bank for long time.

· By considering the past few years’ transaction occurred in the bank it is known that the maximum transaction occurred in 2005 & 2008 respectively. So, it can be said that the transaction is increasing day by day. Bankers need to be active in their field. They must attentive about what is going on actually in the market.

· After analysis the collected data, (response of the respondents) we finally found that basically interest rate, client service and transparency are vital issue in case of banking service. Most of the respondents emphasize on the point. These attributes have to be improved than competitors.

· Considering banking attributes, the respondents have ranked the banks using four point rating scale. Most of the respondents think and have opined that the Bank’s Environment, client service, security and mortgage, technological support (ATM, Online Banking etc.) of Jamuna Bank Ltd. Naogaon Branch are need to be improved. The authority should keep an eye to these issues.

· It is also focused that the respondents actually interested about retail loan under different banner like home loan, education loan, professional loan and car loan etc.

· The authority should give more attention to the promotional activities. As the people become very much busy, they have not enough time to come to the branch and know about the product. For promotion, the authority can take the following initiatives:

Giving advertising in local newspaper for concerned Branch. Making Brochures, leaflets etc. highlighting brand name, criteria and put those on

each and every desk of the branch. Making some poster and hanging on the wall and also some other places where

the massage can be reached to the target people. Such as University for student loan, various shopping center and offices for household and auto loan.

Giving advertising in local cable channel.

· More training should be conducted for the bankers to improve their analytical ability and professional standard regarding risk analysis and other tools and techniques in selecting the borrowers and analyzing the loan proposals. Authority should be delegated to the lower level with adequate measures for the necessary and follow-up for making the lending decision and recovery.

· Interest income occupies the major part of the total earning of a bank and bank’s profitability mainly depends on interest earning capacity, so bank should establish a research and development cell for the purpose of the lending analysis and recovery of loans.

· As bank’s main product is providing quality service. The authority should hire more dynamic personnel, who are able to demonstrate, motivate and explain the feature of their product’s services to the client. JBL should take the initiative for arranging workshop, seminar conference and training session frequently or monthly or at least quarterly basis. It will enhance the skill and expertise of the bank officials to face the challenges of competitive banking business.

· JBL Credit Department should reduce its complex and rigid rules and regulation. The prevailing procedures require many formalities and take many papers etc. in case of taking loan.

Bibliography

▪Kotler, Philip (2001); Principles of Marketing, Eleventh Edition, Prentice-Hall of India Private Limited, New Delhi. ▪Malhotra, Naresh (2004), Marketing Research, Fourth Edition, India: Pearson Education.

▪ Kotler, Philip (2005), Marketing Management, Eleventh Edition, India: Pearson Education.▪ Boyd, Harper, (2002); Introduction to Marketing Research, Seventh Edition, India: AITBS, ▪ Zikmund, William G., Business Research Methods, Seventh Edition, Thomson, South-Western. ▪ Zeithaml, Valarie A. & Bitner, Mary Jo (2007-08), Service Marketing-Integrating Customer Focus Across The Firm, Fourth Edition, Tata McGrraw Hill Edition.▪ G. Schiffman, Leon, (2008-09); Consumer Behavior, Ninth Edition, Pearson- Prentice-Hall- An imprint of Pearson Education.▪ Pearce & Robinson, (2006); Strategic Management (Formulation, Implementation and Control), Ninth Edition, McGraw-Hill Companies, Inc.▪ Journal of Marketing; (2002), Volume 3, Dept of Marketing, Rajshahi University.▪ Annual Report 2008, Jamuna Bank Limited.▪ Annual Report 2007, Jamuna Bank Limited.▪ Prudential Guideline for Credit provided by Jamuna Bank Limited.▪ http://www.jamunabankbd.com▪ http://www.encyclopedia.com/credit