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Overall Banking Activities

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    CHAPTER ONE INTERNSHIP PROGRAM 1. 1. Introduction: The theoretical knowledge and practical training is not the same theme. The theoretical knowledge is fulfilled when it can be used in the practical field. The goal of internship is to apply one’s theoretical knowledge in practical fields. Thus internship is a pragmatic application of knowledge and achieving practical experience by engaging one self in different and distinct sectors of work. That is why the internship program is also included in the curriculum of MBA in University of Rajshahi, which is undertaken in different organization of the country.

    I have also completed my internship program at the Agrani Bank Limited, Rajshahi University Branch, Rajshahi. I have met the Manager/ Senior Principle Officer and give my identity and the letter of the chairman of our department. He permitted my like begins. He introduced me with the Second Officer, Cashier, Computer Operator, Accounts Officer and other Officers. There I practically observed the Overall Banking and Management system of this institution and I discussed with the different Officers about my internship. They informed me about the overall activities and financial statement of the Bank. 1. 2.

    Concept of internship: Internship is a process to achieve practical knowledge about some theoretical lesson. Actually internship means having a practical knowledge from a real field of work. The part “Internship” indicates practical training in any real field where theoretical knowledge is practically applied. Internship help to become aware of how practical practice deviates from theoretical principles. Thus internship program expands both the theoretical and the practical knowledge of the participants. Internship is a kind of practical knowledge exploring system, which is conducted with scientific Management system.

    The essential component of internship is examining in depth, including practical methods of analysis, overlooking strategy formulation and idea of implementation. According to Mr. Green “Standard methods taken for searching knowledge are meant internship. ” According to Polin Efro (1977) “Social Research is such a scientific effort which tries to discover new information through some rational and organized system, which tries to examine the reliability of former information and which tries to make new theories, Systems and conceptions to understand and explain a human attitude. ”

    Finally we can say, to achieve the knowledge in the practical field in an organization in order to make theoretical knowledge to be more fruitful and realistic is called internship or practical training. Thus internship is a pragmatic application of knowledge and achieving practical experience by engaging one self in different and distinct sectors of work. 1. 3. The Objectives of Internship: The specific objectives of Internship are as follows: ? To fulfill the partial requirements of MBA program. ? To make the theoretical knowledge clear, exact, and fruitful. ? To remove the limitations of theoretical knowledge. To know how to solve managerial problem. ? To observe how to find out the guidelines which will remove weakness of any institutions. ? To implement the knowledge of practical training in the real life. ? To know about the relation of owner and employees, the condition of appointment, law and order situation growth of production and other facilities. ? To know about the method of correction of errors, formulation of co-operative and control process. ? Its one of the main objectives is to give participants probe knowledge, if any internee is appointed in the administration job, he can perform the Job with credit. With a view building up an internee as an able worker. ? Identify the problems and put forward recommendations. ? To search new strategy which will be helpful for the authorities. ? To innovate new technique of management. 1. 4. Importance of the Internship Program: A professional man needs practical knowledge to cope with the difficulties in business environment. The importance of internship are as follows: ? In order to materialize the theoretical knowledge in the practical field. ? It can help to cope with the changing condition of today’s complex business world. It is possible to acquire comprehensive knowledge about the complex problem. ? It can help to compete with other competitive institution. For this the qualities of the participants will be developed. ? The internship is done in the practical field. So the knowledge about the relationship between the different divisions or sectors can be acquired. ? Through the internship the information about the concern can be compare with other and the problem can be identified and solved. ? Through the internship direct discussion are possible with high officials and general employees.

    It helps to acquire knowledge about the functions of an organization. ? It has kept an important role to enter in practical life. ? The problem, which may arise during the application of theoretical knowledge, it is possible to solve by internship program. ? To achieve knowledge and experience about various aspects of industrial organization. ? To improve theoretical knowledge. ? To add new practical knowledge with traditional knowledge. ? To achieve important knowledge about some critical matter of management. ? Internship increases the managerial efficiency, which can be helpful in working life. Internship helps to understand the internal significance of management activities in an organization. 1. 5. Limitation of the Internship Program: We know that practical training is essential to acquire a complete knowledge. But it is not easy to achieve. There are some problems in this activity. These are as follows:- ? It needs enough time to visit, fieldwork, patience and inspiration but these are not always available in our country. ? The lack of data is also a problem of internship. ? Observation of activities is a difficult task. ? The concerned data and information are not always mutually presented to evaluate the institution. The internship training needs sufficient financial support. But we have not got this support. ? Another problem is lack of necessary elements and aspects for these reasons practical training becomes difficult. CHAPTER TWO METHODOLOGY 2. 1. Meaning of Methodology: Research methodology is a way to systematically solve the research problem. It may be understood as a science of study how research is done scientifically. In it we study the various steps that will generally adopted by a researcher in studying his research problems along with the logic behind them. Researchers not only need to know how the develop certain ndices of tests, how to calculate the mean, the mode, the median and the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques are relevant and which are not, and what would they mean and indicate and why. Broadly saying that methodology is the undertaking and rules of organization of a philosophical system of inquired procedure. The identifying the relevant sources of data application of appropriate data collection method and the using of proper statistical test and techniques for analyzing the collected data etc. re concerning methodology of the study. 2. 2. Objectives of the Study: The specific scope and objectives of the study are given below: ? To find out the total amount of loan disbursement, loan recovery, deposit collection, total asset, profit or loss account during to 2006-2009. ? To observe relationship between loan disbursement, loan recovery, deposit collection, total asset and profit or loss. ? To know and analyze accounting system of this branch. ? To measure the overall financial position of Agrani Bank, Rajshahi University Branch, Rajshahi. ? To study the organizational set-up and management of different department. To evaluate the accounting and reporting practices followed by Agrani Bank. 2. 3. Methodology of the Study: Methodology provides various strategies and techniques followed to collect data and information to solve research problem. Methodology refers to a set of methods in a particular area of activity or research activity. It states the population, the sample size, statistical measures tools and sometimes the limitations of the study. The methodology of the study is given below: a) For the procedure of different banking operations, I had observed the operations and worked with the Officers at the same time.

    I had interviewed the Officials for getting more information, Agrani Bank Ltd, Rajshahi University Branch, Rajshahi. b) For the analysis part, data have been collected from different statements and the annual reports of the bank. Population of the study: The Agrani Bank Limited a state owned commercial Bank has been chosen as population of the study. I have chosen this Branch for the below causes: ? It serves all functions of a nationalized commercial Bank. ? It is easy to communicate. ? It is easier to collect data within a shorter period. ? It requires limited transportation expenses. The location of this branch is suitable for me. Sample: Sample is a part of the population which is selected purposively. The sample must be representative of whole population. If the sample selection is not representative, it may a give a wrong picture of the actual situation. So, it is very important to select current sample, which would represent the features of the population. A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample.

    Sample design may as well as lay down the number of items to be included in the sample i. e. , the size of the sample. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than others. Researcher must select/prepare a sample design that should be reliable and appropriate for his research study. I have completed my internship program within a limited time and scope. That is why the size of sample I have determined and used is not so large but it is reliable to find out the real fact of my sample firm.

    Selection of the Respondents: Time and cost almost invariably leads to selection of respondents. The respondents selected should be representative of the total population as possible in order to produce a miniature cross-section. During my internship program I have collected various information and data from different officers and manger who are very much responsible to the institution. And they are involved with the key activities of the bank like General Banking, Credit Management and Foreign Exchange activities. All of them are very much co-operative and they behaved with me so much cordially.

    The Respondents are: 1) Manager/SPO, Agrani Bank Ltd, Rajshahi University Branch, Rajshahi 2) Senior and Junior Officers of a) General Banking Department. b) Credit Management Department. c) Foreign Exchange Department. 3) Other Officials of Agrani Bank Ltd, Rajshahi University Branch, Rajshahi. Types of Data and Their Sources: To make the Report more meaningful and presentable, two sources of data and information have been used widely. Both primary and secondary data sources were used to generate the report. They are shown and discussed below:- [pic] Primary Data:

    The primary data are those, which are collected afresh and for the first time and thus happen to be original in character. This report has been prepared through extensive use of primary data. The sources of my primary data are as follows: ? Face-to-face conversation with the respective officers and staffs of the branch. ? Informal conversation with the clients/customers. ? Practical work exposures from the different desks of the Branch. ? Study of the relevant files as instructed by the officers concerned. ? My diary (that contains experience in bank while undergoing practical orientation).

    Secondary Data: The secondary data are those which have already been collected by some one else and which have already been passed through the statistical process. The secondary sources are as follows: ? Annual Reports of Agrani Bank published so far. ? Periodicals published by Bangladesh Bank. ? Various books, journals and articles regarding general banking functions, foreign exchange operations , credit policies and their Customer’s services. ? My diary maintained while undergoing the practical orientation. 2. 4. Methods of data collection:

    There are so many ways or methods of collecting data. Here, for preparing internship report, I have collected data both from primary and secondary sources according to my questionnaire. I have talked to the officers, staff and manager of Agrani Bank Ltd, Rajshahi University Branch, Rajshahi who directly related to different policies and working activities of Agrani Bank Ltd, Rajshahi University Branch, Rajshahi. For preparing my internship report I have been used the following data collection methods: 1. Personal Interview; 2. Questionnaire Method; 3. By Observation; 4.

    Briefing Sessions; 5. Other Documents; 1. Personal Interview: I have collected data by communicate personally with different level of employees, manager; senior officers and other executives. They provided information about banking operations. 2. Questionnaire Method: At first I made a questionnaire about every department activities and performance of Agrani Bank. Thus I follow the questionnaire and collect data according to questionnaire and arrange the answer of those questions in my report, which I collect from bank executives, officers and others. 3. By Observation:

    Through this process I have collected data and information some times and I have taken a brief about the banking activities, which assist me to prepare this internship report. 4. Briefing session: At the off-pick of the bank the senior officers brief the trainees. Through this briefing session I collect my necessary information about the different segment of the institution. 5. Other documents: Secondary data have collected from the banks annual reports, journals, books, leaflets, various types of ledger, daily performance reports and other sources. I am also get a lot of help from Agrani banks website. . 5. Techniques of Analysis: After collecting the data, it is necessary to analyze or process the data to get meaningful information. Under this study the collected data are analyzed. To analyze the collected data scrutinized, a person has to require following and applying some techniques. Accordingly, I used some important techniques for analyzing the required data, so that I can get fruitful result from my study. The techniques that I have applied to prepare the report are as follows; 1) Processing of data 2) Analyzing of data 1) Processing of data: Processing of data includes four steps: ) Editing b) Coding c) Classification d) Tabulation a) Editing: Editing of data is a process of examining the collected raw data (especially in surveys) to detect errors and omissions and to correct these when possible. Editing is done to assure that the data are accurate, consistent with other facts gathered, uniformly entered, as complete as possible and have been well arranged to facilitate coding and tabulation. b) Coding: Coding refers to the process of assigning numerals or other symbols to answer so that responses can be put into a limited number of categories or classes. ) Classification: Most research studies result in a large volume of raw data, which must be reduced into homogenous groups if we want to get meaningful result. d) Tabulation: When a mass of data has been assembled, it becomes necessary for the researcher to arrange the same in some kind of concise and logical order. This procedure is referred to as tabulation. 2. Analyzing of data: I have used the following tools to analyze the data – 1. Tabular representation. 2. Graphic representation through bar diagram 3. Pie graph 4. Chart etc. 2. 6. Limitation of the study:

    I have faced some following problems during my data collection period: • The officers and others stuffs were very busy. So they could not give us enough time for discussion about selected topics. • Data were not available. Although it is a commercial bank the stuff maintains some security about data and information. • Time of data collection was not sufficient because the total time period o f the orientation was 7 days only. It is very short time to complete this studies program properly. So I had to conduct with all functions within short times. CHAPTER THREE

    AN OVERVIEW OF AGRANI BANK LIMITED, RAJSHAHI UNIVERSITY BRANCH 3. 1. Evaluation of Agrani Bank Ltd: Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. It started functioning as nationalized commercial bank taking over assets and liabilities of the rest while Habib Bank ltd and commerce Bank ltd. functioning in the East Pakistan.

    It has been corporatised on 15th November. 2007 and emerged as Agrani Bank Limited (ABL) taking over assets, liability and goodwill of Agrani Bank. Agrani Bank Limited is governed by a Board of Directors consisting of 11(eleven) members headed by a chairman. The Bank is headed by the Managing director & Chief Executive Officer; Managing director is assisted by Deputy Managing Director and General Managers. The bank has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10 corporate and 40 AD( authorized dealer) branches.

    The corporate and AD branches are authorized to deal in Foreign exchange business. Organizational Structure of Head Office: Smooth and transparent credit operation requires segregation of duties so that relevant activities e. g. credit marketing, approval, documentation, disbursement etc. become independent of each other. It is important that these activities are not pooled within one or two Departments/ Divisions in the organization. Rather, it is preferable that all the above activities rest with separate Departments/ Divisions.

    As such, these require some independent departmental setup both at branch and Head Office level within the Bank. [pic] Departments of Agrani Bank Limited: If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the department is not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. Agrani Bank Limited has does this work very well.

    Different departments of ABL are as follows: |Agrani Bank Training Institutes |Industrial credit division-1 | |Audit implementation division |Industrial credit division-2 | |Board division |International trade division | |Branch control division |Law division | |Central accounts division |Loan classification division | |Common services division |MD’s squad | |Development and co-ordination division |Personnel division | |Disciplinary action division |Planning research & MIS division | |Engineering and establishment division Printing & stationary division | |Foreign currency management division |Public relation division | |Fund management division |Reconciliation division | |General credit division |Remittance management division | |Human resources & appeal division |Rural credit division | |Information technology division |SME & micro credit division | | | | [pic] Branches of Agrani Bank Ltd. |Division |No.

    Of Branches | |Dhaka |262 | |Chittagng |174 | |Rajshahi |196 | |Khulna |128 | |Sylhet |58 | |Barisal |49 | |Total |867 | 3. 2. Evaluation of Agrani Bank Ltd, Rajshahi University Branch, Rajshahi: Agani Bank starts its operation from 2nd April 1965 at Rajshahi University in Rajshahi..

    It is in the middle at Rajshahi University, in front of main academic building. It is an ideal branch of Agrani Bank Ltd. 3. 3. Objectives of the branch: The main objectives of this bank are to maintain the financial factors of Rajshahi University with general banking, Salary of the Teachers and others employees, Students relationship program i. e. admission, examination, scholarship, certificates and other fees, money transferring for all purpose development program of the university, disburses loan in different types like house building, Consumer Credit Scheme (Motor cycle, cycle, TV, Refrigerator, Furniture, Computer etc. ), to persons related to university are main task of this branch. 3. 4. Sources of capital: ) Rajshahi University Treasury2) Authorized capital 3) Recovered loan4) Collected deposit 3. 5. Organogram of this Branch: Senior Principal Officer/ Manager (1) Principal Officer (6) Senior Officer (3) Officer (6) A/A (2) UDA (1) Officer Cash (7) Typist (1) MLSS (2) Total Employees (29) CHAPTER FOUR EMPIRICAL FINDINGS 4. 1. Findings from the secondary Data: 4. 1. 1. Traditional Heritages of Agrani Bank Limited (ABL): The Bank enjoys the status of a company and functions in terms of the Banking Company Ordinance and regulations of Bangladesh Bank (the Central Bank) and upon such directions as may be changed from time to time by the Government of the People’s Republic of Bangladesh.

    The Bank, in 1972, started operation with only 249 branches with its Head Office in Dhaka. There was hardly any liquid asset to run the operation of the Bank smoothly. The Bank resumed its operational activities with an authorized capital of Tk. 5. 00 crore and paid-up capital of Tk. 1. 00 crore. Initially the Bank had deposit of Tk. 96. 17 crore, advances of Tk. 76. 56 crore, borrowings of Tk. 29. 48 crore andinvestment of Tk. 11. 00 crore. The Bank had commercial relationship with only 41 overseas correspondents in 1972. Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May 17, 2007 vide Certificate of Incorporation No. E 66888(4380)/07.

    The Bank has taken over the business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972, pursuant to Bangladesh Bank (Nationalization) order no. 1972 (P. O. NO. -26 of 1972) on a going concern basis through a Vendor Agreement signed between the Ministry of Finance of the People’s Republic of Bangladesh on behalf of Agrani Bank and the Board of Directors on behalf of Agrani Bank Limited on November 15, 2007 with a retrospective effect from July 01, 2007. The Bank’s current shareholdings comprise Government of the People’s Republic of Bangladesh and other 10 (Ten) shareholders nominated by the Government. The Bank has 867 branches as on December 31, 2008 (with no overseas branch). The Bank, however, has two wholly-owned subsidiary Companies named Agrani Exchange House (Pvt. ) Ltd. n Singapore and Agrani Remittance House SDN, BHD in Malaysia. 4. 1. 2. Nature of Business: The principal activities of the Bank are providing all kinds of commercial banking services to its customers and the principal activities of its subsidiaries are to carry on the remittance business and to undertake and participate in any or all transactions, and operations commonly carried or undertaken by remittance and exchange houses. Agrani Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank.

    Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. 4. 1. 3. Capital Base: |Years |2004 |2005 |2006 |2007 |2008 | |Authorized Capital |800 |800 |800 |800 |3200 | |Paid up Capital |248. 42 |248. 42 |248. 42 |248. 42 |248. 42 | Table: The financial position of Agrani Bank Ltd. at the initial stage. [pic]

    Figure: The financial position of Agrani Bank Ltd. 4. 1. 4. Mission of Agrani Bank Limited (ABL): To be the most efficient bank in terms of customer service, profitability and technology application. 4. 1. 5. Vision of Agrani Bank Limited (ABL): Continuous improvement in our business policies and procedures & Cost reduction through integration of technology at all level. 4. 1. 6. Logo: 4. 1. 7. Slogan: “Committed to Serve the Nation. ” 4. 1. 8. Core Objectives of Agrani Bank Limited (ABL): Agrani Bank Limited believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking.

    Taking cue from its pool esteemed clientele, Agrani Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques “Your Trusted Partner”. 4. 1. 9. Values:• Customer focus• Respect for individual • Quality • Responsible citizenship • Integrity • Team Work 4. 1. 10. General Banking Functions: General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc.

    Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. General banking basically, covers the following sections: ? Account opening section ? Remittance ? Checks clearing ? Cash Agrani Bank provides commercial banking. It provides the customers opportunities to open various deposit accounts with the bank, loan facilities, and remittance facilities. 4. 1. 10. A. Opening an Account: Any matured person, legal institution or company can open a bank account. The general procedure to open an account with AGRAM BANK is as follows: – Obtain a prescribed application form from the bank – Submit the duly completed form with necessary papers to the concerned officer. – Face a brief interview Put specimen signature in the signature card supplied by the bank. – Providing deposit book and obtaining initial deposit – Having account number – Providing cheque book – Save Customer information in software (Computer) With the prescribed application form, the applicant should submit the following papers and information’s. I. Nationality certificate from the appropriate authority. II. Two copies of recent passport size photographs. III. If the applicant is a service holder he should collect employee certificate from his employer and is to be submitted. IV. The applicant’s signature should be identified by an introducer who has a CD A/C with the respective branch. V.

    The applicant should deposit minimum taka 100/- to open an account. In case of joint account, the applicant must furnish the following information and papers- I. Name of the parties who will operate the account and sign the checks. II. At the event of death either or any of the account holders how the balance will be paid and to whom the securities (if any) will be delivered. The documentary requirements are almost the same as individual accounts. Account opening form and the special instructions must be signed by all the joint account holders to signify their consent. III. If the client is a partnership company the company has to submit partnership deed to the bank. IV.

    If the applicant is a sole proprietorship business, the client has to submit trade license collected from the appropriate authority & seal of the institution. ? If the client is a private or public limited company, the company has to provide a special instruction about the type of the account and the operation of the account. Specimen signature of the person who is authorized to open and operate the account and the sources of their authority is must: 1. Memorandum and articles of association of the company 2. Power of authority or 3. Resolution of board of directors The banker should strictly observe the following general precautions before opening a bank account:

    I. To observe whether the application form is properly filled up. II. Having preserving specimen signature of a customer. III. Having introduction. IV. Talking initial deposit in cash. V. The banker should verify some important documents like memorandum of association, articles of association, registration certificate of incorporation, trade license,, letter of partnership, partnership deeds etc. provided the prospective customer is a corporate body or a partnership firm, or a proprietorship firm or a cooperative society. Account Opening Procedure with a Flow Chart: Source: Official Records of Agrani Bank, R. U. Branch, Rajshahi. 4. 1. 10. B.

    Different Types of accounts: Like any other bank these branch also has different type of accounts. These are, (Demand deposit: i) Current Account: Current Account is that kind of account from which an account holder can withdraw or deposit his or her money at any time within banking hour. An account holder does not get interest of this account. The initial deposits of Agrani Bank, in this account this Tk. 10000 and balance must be maintained at least at this amount. ii) Savings Account: Any individual can open this account. Here interest rate 4% per annum. The minimum initial deposit of savings account is Tk. 100 and this amount must be maintained.

    He can deposit money in a week is not more then Tk. 1000 or 25% of the balance (which ever is lower). If he wants to withdraw money more then 25% in a week, he has to place a written notice to the bank 7-days earlier. If any customer with draws money more then two times in a week or more that 25% of the balance or more then Tk. 10000 without any notice, the customer will not be given any interest for that month. Interest is credited to each saving account on June and December each year on the average balance of the last 15 days of each month. iii) Short Notice Term Deposit Account (SNTD): SNTD account is, more or less,, like the current account.

    Account holders of this account are normally companies or firms or governments or the administrative bodies like the TNO, WDP etc. But here interested are added to deposited money. The interest rate is 3. 50% per annum. (Time Deposit: Time deposit is for longer period of time. Money cannot be with drowning from this a/c as easily as demand deposit. This is repayable after the expiration of a certain period of time. Time deposits are classified into three categories. i) Deposit Pension Scheme (DPS): A person has to pay monthly installments under this scheme to build up his savings to get an attractive fixed amount at the end of a specified period of time. The amount of the monthly installments is Tk. 00 to Tk. 500. This amount is to be deposited within the first week of each month. In this case, 15% compound rate of interest is charged. At present it is closed, but previous open DPS is still running. ii) Agrani Bank Pension Scheme (ABPS): Agrani Bank has its own saving scheme, which is called ABPS. It is a special product of this bank. The ABPS. is same as DPS. But the terms of savings of ABPS are 5 years and 10 years and the rates of interest are 7% and 9% respectively. The amount of the monthly installments is Tk. 100 to Tk. 500. Interest is credited to the accounts of the depositors in June every year. At present 10 years ABPS is closed. ii) Agrani Bank Bishesh Scheme (ABS): Agrani Bank has Bishesh saving scheme, which is called ABS. But the terms of savings of ABS are 5 years and 10 years and the rates of interest are 8% and 9% respectively. The amount of the monthly installments is Tk. 1000 to Tk. 10000. iv) Fixed Deposit Receipt (FDR): When a customer deposits some money to the bank gives him as receipt indicating that, he will get the full a mount back including interest, after a specified period of time, is called FDR. If any depositor wishes to withdraw his or her money before maturity, he or she is allowed to do so but in this case, interest will be given according to the prescribed rate for that term.

    This instrument also is also accepted as primary security or collateral security against any advance or loan subjected to the bank. v) Sundry Deposit: This deposit program is only for bank employees. Taka. 1000. 00 deposited to provident fund from the total amount of deposited money. In Sundry deposit there so many there are so many schemes, such as: 1. Employees pension fund 2. General provident fund 3. Key deposit 4. Undisbursed salary and other 5. VAT on commission 6. Excise duty 7. Employee welfare fund. 4. 1. 10. C. Special types of account holder: There are some special types of account holder who are listed below: i) Minor. ii) Illiterate persons. iii) Blind persons. iv) Dumb and deaf.

    Three types of persons can never open account with the Agrani Bank. • The person who is fully mad • The man who is still bankrupt • The person whose mind is unsound that is lunatic. 4. 1. 10. D. Transfer of Accounts: When an account is transferred from one branch of Agrani Bank to another, the “Account Opening Form” signed at the time of the opening of the account and any forms or documents signed subsequently which are necessary for its proper conduct at the time of the transfer, must be forwarded to the branch to which the account is transferred together with the relative Mail Transfer (MT) no. , Specimen Signature Card and standing instruction, if any. No exchange is charged on such transfer. 4. 1. 10. E.

    Closing of an Account: Any account holder can close his or her own account. To do that he has to place a written application. The following circumstances are usually considered in case of closing an account or justifying the stoppage of the operation of an account- ? Notice given by the customer himself or if the customer is desirous to close the account ? Death of the customer ? Customer’s insanity and insolvency ? If the branch finds that the account is inoperative for a long period. ? If Garnishee Order is issued by the Court of Law on the bank branch. To close the account, the cheque-book is to be returned to the branch. The Agrani Bank, R. U.

    Branch, Rajshahi takes all the charges by debiting the account and the remaining balance is then paid to the customer. Necessary entries are given to the “Account Closing Register” and in the computer as well. 4. 1. 10. F. Different Types of Cheque: A cheque is a bill of exchange which is drawn upon a specified banker and it is payable on demand. There are two types of cheques: i) Open Cheque : Cheques, which are paid across the counter is called open cheques. ii) Cross Cheque: A cross cheque is only payable to a certain account in the bank or to a certain branch of the bank or to a different bank. A cross cheque can ensure safety of payment. ii-(1) General Crossing : General Crossing consists of two parallel transverse lines.

    Sometime it contains the words “And Co” or “Not Negotiable”. ii-(2) Special Crossing : It consists the name of the banker across the face of a cheque. The words “Not Negotiable” can be there. There are a few more types of cheque: i) Antedated Cheque : A cheque is called an antedated cheque, when it bears a date earlier to the date on which the cheque is drawn. ii) Stale Cheque : A cheque becomes “stale” after the expiration of 6 months from its date of issuing. iii) Post dated cheque: A post-dated cheque is one, which bears a date subsequent to one on which it is drawn. 4. 1. 10. G. Cheque Honouring Procedure: i) After placing the cheque, the respective banker issues a token i) The banker gives an entry into the register iii) The banker puts token number behind the cheque iv) The banker provides ledger posting on the cheque amount and makes it on the cheque v) The second officer places a pay order on the cheque vi) The second officer places to the cashier and vii) Finally, the cheque amount is paid of to the customer against his or her respective token. 4. 1. 10. H. Factors considering by the banker before honouring a cheque: i) At first the banker has to observe the date on the cheque. If it is antedated it can be honoured but if it is post dated it cannot be honoured for a stale cheque, it is returned to the customer. i) If there is any change of attrition, the writer will have to put his or her signature on the cheque. iii) If there exists any difference between the amount of taka in number and in words, the amount of taka in number is only honored. iv) If it is a self-cheque, the cheque holder has to put two signatures behind the cheque. v) The cheque holder will put two signatures on the bottom of the cheque. vi) If it is a bearer cheque, the bearer has to put two signatures behind the cheque. vii) The specimen signature and the placed signture on the cheque will have to the same. viii) The minimum balance of respective account will have to be maintained. Operation of Cheques:

    A cheque is an unconditional order in writing, drawn on a specified banker signed by the drawer, requiring the banker to pay on demand a certain sum of money to or to the order of specified or the bearer and which does not order any act to be done in addition to the payment of money. Thus a cheque involves three (3) parties – 1) The Drawer; 2) The Drawee (the Banker); and 3) The Payee (to whom the cheque is to be paid). Flow Chart for Passing and Payment System of Chequre: Source: Official Records of Agrani Bank, R. U . Branch, Rajshahi. 4. 1. 10. I. Cheque Dishonored by Bank: A banker may dishonor cheque in the following cases: i) When a post dated a stale cheque is presented. i) When the cheque amount has crossed the minimum balance iii) When the cheque holder has already ordered to stop transaction in his or her account. 4. 1. 10. J. General Banking Functions of Cash Department: Cash department is another important functional area of this branch of Agrani Bank. Cash Payment In this section I have gathered practical experience about how a cheque is honored and how cash is paid. The formalities involved in honorees, of a cheque and cash payment are given below: |COUNTER | |Customer places the cheque to the 1edger officer (LO).

    The LO receives the check, enters its particulars in a register and| |issues the customer a token. | |v | |VERIFYING THE CHEQUE | |The LO now verifies the ledger of the customer. If the customer’s account position is okay, he passes the cheque to the | |second officer (SO). | |v | |HONORING THE CHEQUE | |The SO compares the customer’s signature given on the cheque with that on the signature card kept in his custody.

    If the | |signature is okay then he makes an entry of the cheque in another register and cancels it by signing across, the cheque | |v | |CHEQUE CANCELLATION | |Once the cheque is cancelled, that is Okayed for payment it is brought to the cashier by a peon. | |v | |DRAWING MONEY | |Cashier enters the amount of the cheque in the cash register and pays the appropriate amount to the customer. |v | |POSTIN IN THE TRIAL, BALANCE | |At the end of banking hour it trial balance is prepared from the registers and all the registers are compared with one | |another. | Cash Receipt: Customer’s deposits are received in this section of bank. Then the amount received is credited to the customer’s A/C in the ledger book. The formalities that are followed to receive a customer’s deposit (cash) in the cash receipt section are stated in the following flow chart- |Customer places this cash and deposit slip before the respective officer at the counter. | |v | |After receiving the cash and deposit slip, the officer makes an entry to scroll register book. Then the deposit slip and | |cash are placed before cashier. |v | |The cashier counts this amount of money first and then makes an entry to another register book is generally called cash | |book. | |v | |Then the cashier passes the cash book and deposit slip to the second officer. | |v | |After verifying the deposit slip, the second officer returns the counter-folio of the deposit slip to the customer and | |keeps (lie other position in his custody. | |v | |At the end of banking hour, trial balance is prepared from that cash receipt register. | 4. 1. 2. Deposit account: A commercial bank acts as a financial intermediary in an economy.

    The main two tasks of a commercial bank are to collect deposit at lower interest rate and to provide loan as vital role in the development of an economy through mobilizing deposits. Bank collects idle savings of people and turns it to investment. By this way bank becomes benefited and the national economy of the country becomes enriched. Side by side, people becomes able to keep their money safely in a bank and receive interest from it. Bangladesh is a developing country of the third world. Commercial banks of all over the country largely contribute to develop our economy. Without the help of commercial banks, it is not possible to collect sufficient capital for national capital formation of our country. . 1. 2. A. Types of Deposit: Deposit is considered as lifeblood of a bank. No bank can run without deposit. A bank has to collect deposits from various sources in order to operate its activities, successfully as well as to satisfy the national objectives. As a branch of nationalized commercial bank, Agrani Bank, Rajshahi University Branch tries to satisfy the above mentioned objectives. The branch has deposits of the following types: 1. Fixed Deposits 2. Special Notice Time Deposits (SNTD) 3. Agrani Bank Pension Scheme 4. Saving Deposits 5. Currents Deposits 6. Call Deposit 7. Sundry Deposits 4. . 2. B. Interest rate on deposit: The following table shows the various interest rates on deposit:- |S. L. No |Particular |Interest rate | |1. |Savings deposit |4. 00% | |2. |Special notice time deposit |3. 50% | |3. |Fixed deposit: | | | |3 month or more but less than 6 months |7. 5% | | |6 month or more but less than 1 year | | | |1 year or more but less than 2 years |7. 50% | | |2 years or more but less than 5 years |8. 00% | | | |8. 00% | |4. |D. P. S |15. 00% | |5. |A. B. P.

    S: | | | |5 years term |7. 00% | | |10 years term |9. 00% | |6. |Cash Credit |14. 00% | |7. |Overdraft |14. 00% | |8. |Term Overdraft |14. 00% | |9. Staff loan: | | | |Staff house building loan |Bank rate 5. 00% | | |Stuff motor cycle loan |Bank rate 5. 00% | | |Stuff bicycle loan |Bank rate 5. 00% | | |Loan against provident fund |Bank rate 5. 00% | Source: Statement of Affairs. 4. 1. 2. C. Deposit Mix Position in the year of 2009: The deposit mixed position of Agrani Bank; Rajshahi University Branch in the year of 2009 is shown in the following table: Name of Deposit |Amount |% of total amount | |Fixed Deposit |142867378 |21. 60 | |Special Notice Time Deposit |66016527 |10. 00 | |Deposit Pension Scheme |6657398 |1. 00 | |Agrani Bank pension Sanchay prokolpo |4471376 |0. 67 | |Savings deposit |416827475 |63. 01 | |Current deposit |22704743 |3. 3 | |Call deposit |455848 |0. 07 | |Sundry Deposit |37500 |0. 006 | |Agrani Bank special deposit scheme |1448280 |0. 22 | |Total |661486525 |100 | Source: Statement of Affairs. The deposit mix position of Agrani Bank, Rajshahi University Branch in the year of 2009 can be represented with the help of following pie-chart. [pic]

    Figure: Deposit mix position of Agrani Bank, Rajshahi University Branch in the year of 2009. From above table and pie-chart we can see that the higher amount of deposit among various types of accounts mobilized by the branch in the year of 2009 was Savings deposit. On the other hand, the branch mobilizes the lowest amount of deposit in Call deposit account i. e. only 0. 07% of total deposits. Fixed deposit account places the second highest position in the deposit by the branch. 4. 1. 2. D. Trend of Total deposit: Here I have tried to identify a trend of total deposit of the branch. I have considered the data given in the table below: Table:Total deposit of Agrani Bank, Rajshahi University Branch from 31. 12. 2006 to 31. 12. 2009. Year |Total Amount of Deposit | |2006 |512,594,802 | |2007 |537,409,166 | |2008 |622,496,774 | |2009 |661,486,525 | Source: Statement of Affairs. By plotting the given data in above table, we get the following trend line of total deposit of the branch bank. [pic] Figure: Trend of total deposit Agrani Bank, Rajshahi University Branch.

    From above table and figure it is observed that from the year 2006, the amount of total deposits of the branch is increasing. It means that the branch has been able to maintain steady upward trend in mobilizing total deposits. 4. 1. 2. E. Account wise total deposit: The position of total deposits Agrani Bank, Rajshahi University Branch under different accounts is shown in the Following table:- Table- Account wise total deposit of Agrani Bank, Rajshahi University Branch from 31/12/2006 to 31/12/2009. |Name of Account |Amount of total deposits | |Fixed deposits account |561119146 |Special notice time deposits account |232855863 | |Deposit pension scheme account |24406101 | |Agrani Bank pension Sanchay prokolpo |875081110 | |Savings deposit account |1352850125 | |Current deposit account |72370130 | |Call deposit account |1296898 | |Sundry deposit account |132614 | Source: Statement of Affairs

    Table-Account wise total deposit position of Agrani Bank, Rajshahi University Branch from the year 2006 to 2009 can be represented with the help of following pie-chart. [pic] From above table and pie-chart we can see that the higher amount of deposit among various types of accounts mobilized by the branch from the year 2006 to 2009 was Savings deposit. 4. 1. 3. Loan and Advances: The goal of every commercial bank is to serve customer as well as earns profit. Agrani Bank, Rajshahi University Branch is not exceptional. As a nationalized commercial bank, its goal is to earn profit as well as to contribute on the economic development of the country. 4. 1. 3. A. Types of Loans and Advances

    Loan means lending money to someone on trust. Agrani Bank, Rajshahi University Branch provides the following kinds of Loan to the customer. a) Consumer Loan Consumer loan is one kind of loan which is given only the employees who are doing their job in any government or statutory organization. This loan is only for employees. The person who is doing job at least 3 years in government organization and statutory organization and his age must be under 55 years. The interest rate is 14% and the amount is maximum Tk. 500000. b) Cash credit A cash Credit is a fluctuation account and is operated in the same way as a current account on which an overdraft has been sanctioned.

    Under this system the banker specifies a limit called the cash credit limit for each customer up to which the customer is permitted to borrow against the security of tangible assets on guarantee. The interest rate is 13%. c) Overdraft In case of advances sanctioned by way of overdraft, the bank sanctions a limit up to which customers can overdraw his current account within a stipulated period. This is fluctuating account where thee balance sometimes may be debited and sometimes may be credited. The interest rate is 14%. Overdraft may be of the following two types: ? Temporary overdraft ? Secured overdraft It is again mentioned here that most of the overdraft from this branch is taken by the business, institutions and temporary overdraft from this branch is taken by the teachers and officers. ) Staff Loan Whenthe bank lends its money to its staff then it is called staff loan. The following types of loan are supplied by the bank to the staff: 1. Loan from provident fund: In these types of loan the interest rate is 5%. One employee can borrow 80% of his provident fund. 2. House Building loan: One employee also lends money for House Building. In this case the interest rate is 5%. 4. 1. 3. B. Trend of Loan Disbursement: Here I have tried to identify a trend of total loan of the branch. I have considered the data given in the table below: Table- : Total loan of Agrani Bank, Rajshahi University Branch from 31. 12. 2006 to 31. 12. 2009. |Year Amount of Loan Disbursement | |2006 |385. 91 | |2007 |463. 03 | |2008 |901. 78 | |2009 |1558. 51 | Source: Statement of Affairs Fitting the Trend Line By plotting the given data in above table, we get the following trend line of total deposit of the branch bank. pic] Figure: Trend of total deposit Agrani Bank, Rajshahi University Branch. From above table and figure it is observed that in every year the amount of total loan disbursement of this branch is increasing. It means that the branch has been able to disbursement their targeted loan. 4. 1. 4. University Admission and others Agrani Bank Limited, Rajshahi Univesity branch is an ideal branch of Agrani Bank. The main objectives of this bank are to maintain the financial factors of Rajshahi University with general banking and other university related activities. Salary of the Teachers and others employees, Students and academic related activities i. e. dmission, examination, scholarship, certificates and other fees, money transferring for all purpose development program of the university. 4. 1. 5. Bank Remittances: The system of transmitting or sending money from one branch, to another branch of the same bank or from one bank to another bank within a country or outside the country is known as remittance. It is one of the important functional areas of a bank. A bank can earn handsome fees as commission front the dealings of money remittance. During my internship program I have gathered practical experience about how money is remitted from one branch to another branch of a bank or from one bank to another bank. Types of Remittance: Remittance can be of two types, i. e. o Inland Remittance o Foreign Remittance Inland Remittance:

    When money is remitted within a country through proper banking channel, it is termed as in1and remittance. Agrani Bank Ltd. , Rajshahi University Branch deals a lot of inland remittance at every working day they are as follows: Demand Draft (DD): DD is the most widely used instrument of remitting fund. It is order to pay money drawn by one branch of a bank upon another branch of same bank for a particular amount of money that is payable to order and demand. Mail Transfer (MT): MT is another widely used instrument of remitting fund from one branch of a bank to another branch of the same bank. It is not used to remit fund from one bank to another. MT is nearly same as DD. Telegraphic transfer (TT):

    TT is the fastest means of remitting fund between two branches of the same bank. Fund can not be remitted from one bank to another bank through TT. Payment Order (PO): Payment Order (PO) is an instrument that contains an order for payment to the payee only in case of local payment whether on behalf of the bank or its constituents. Foreign Remittance: The procedure to transfer money from one country to another country through bank or other govt. authorized agencies is called foreign remittance. Agrani Bank Limited, a leader in Foreign Remittance business, is equipped with all modern tools like SWIFT (Society for World-Wide Inter-Bank Financial

    Telecommunications), Telex, Internet, fax and other Telecommunication devices to ensure quick and safe transfer of foreign remittance to the beneficiaries anywhere in Bangladesh. Agrani Bank Limited, having established contractual relationship with about 400 Overseas Correspondents and 30 Exchange Houses all over the world, is ready to cater to the banking needs of foreigners as well as Bangladeshis living abroad as far as incoming remittance is concerned. The Agrani Bank Limited, Rajshahi University Branch provides foreign remittance facility to its customer. 4. 2. Findings from the Primary Data: 4. 2. 1. Finding from Interview: Manager ABL Rajshahi University Branch: The manager thinks that, salary structure of employees of Agrani Bank Limited is sufficient and work environment is also healthy.

    Beside this, the job security of the organization is more than other organization. He also mentioned that Agrani Bank has arranged different financial advantages for employees i. e. bonus that is gain from profit. Beside this, they provide employees with medical allowance, educational allowance for employees children, financial helping for housing and different festival bonus in a year. When it comes to gender equality, manager mentioned that in recruiting there is no gender discrimination is prevailing in Agrani Bank. He also mentioned that as this branch is a part of Rajshahi University they have to perform many different works regarding Rajshahi University related financial activities. Principle Officer

    While interviewing a principle officer, we have found almost same statement as top manager and he depicts that they are satisfied with their job and other benefits. But he also mentioned that if they have modern machinery and more man power then they will be able to serve better services. University Professor While interviewing a University Professor he said they are satisfied with the services of this branch, he also mentioned that an organization must perform social responsibilities along with earning profit. A University student While interviewing a university student we found they are not fully satisfied with the service of this branch because to get service they have to wait a long time in line. 4. 2. 2. Finding from Observation:

    By observing Agrani Bank Limited, Rahshahi University Branch we found this branch is performing many activities regarding Rajashahi University’s financial activities and its customers are mainly Teachers, students, officers and employees of Rahshahi University. As they are very busy, they want quick services from this branch. Though the branch has a shortage of manpower and modern tecnology, they are trying to serve their best. 4. 2. 3. Findings from Questionnaire: From Questionnaire we have got many important information and data which are mentioned in preparing this report. CHAPTER FIVE ANALYSIS AND PERFORMANCE EVALUATION 5. 1. Target and Achievement: Though Agrani Bank, Rajshahi University branch is an ideal branch of Agrani bank, like any other commercial bank this branch also performs with target.

    Agrani Bank, Rajshahi University branch every year got a target and tries to achieve this target. Every year this branch fixes up a target in different segments like Deposit target, Loan target, profit target etc. Target and achievement in these sectors are discuss briefly as follows- 5. 1. A. Deposit Target and Achievement: Deposit target and achievement of Agrani Bank Limited, Rajshahi University branch from 2006 to 2009. |Year |Deposit Target |Achievement | |2006 |54. 33 |51. 26 | |2007 |57. 6 |53. 74 | |2008 |59. 40 |62. 27 | |2009 |65 |66. 14 | Table: Deposit target and achievement By plotting the given data in above table, we get the following trend line of total deposit of this branch. Figure: Deposit Target and Achievement of Agrani Bank, Rajshahi University Branch from 2006 to 2009. From above table and Figure we can see that the Bank could not achieve deposit target in 2006 and 2007.

    But in 2008 and 2009 Bank achieved Deposit target successfully. 5. 1. B. Loan Target and Achievement: Loan target and achievement of Agrani Bank Limited, Rajshahi University branch from 2006 to 2009 |Year |Loan Target |Achievement | |2006 |420 |385. 91 | |2007 |405 |463. 03 | |2008 |5 |901. 8 | |2009 |950 |1558. 51 | Table: Loan target and achievement By plotting the given data in above table, we get the following trend line of total Loan and achievement of this branch Figure: Loan Target and Achievement of Agrani Bank, Rajshahi University Branch from 2006 to 2009. From above table and Figure we can see that the Bank could not achieve loan disbursement target in 2006. But in 2007, 2008 and 2009 Bank achieved loan disbursement target successfully. 5. 1. C. Profit Target and Achievement: Profit target and achievement of Agrani Bank Limited, Rajshahi University branch from 2006 to 2009 Year |Profit Target |Achievement | |2006 |93

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