Internship Report On Foreign Remittance Activities Of Janata Bank Limited 71h1i
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A Study on
Freiogn Remittance Activities of
Janata Bank Limited (UGC Branch, Agargoan)
Daffodil International University Date of submission: 10th December, 2014
©Daffodil International University
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An Internship Report Submitted by
Ashfaqur Rahman ID: 102-11-1595
Performed at
Janata Bank Limited UGC Branch, Agargoan, Dhaka.
A Study Presented in Partial Fulfilment Of the Rezuirements for the degree Bachelor of Business istration
Major in FINANCE
Department of Business istration
Daffodil International University
©Daffodil International University
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An Internship report Performed at
Janata Bank Limited UGC Branch, Agargoan, Dhaka.
Course Title: Internship Credit: 06 Submitted by
Ashfaqur Rahman ID: 102-11-1595
Program: B.B.A Department of Business istration
Daffodil International University
Submitted to
Sayma Suraiya Senior Lecturer Faculty of Business and istration
Daffodil International University
Daffodil International University
©Daffodil International University
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Date of submission: 10th December, 2014
Letter of Transmittal Date: 10th December, 2014 Sayma Suraiya Senior Lecturer Faculty of Business istration Daffodil International University Dhaka, Bangladesh. Subject: Submission of Internship Report. Dear Mam, It is my great pleasure that I submit the internship report on Foreign Remittance Activities of Janata Bank Limited as partial requirement of internship program under BBA curriculum. I have tried my best to follow your guidelines in every aspect of planning and preparing the report. I have collected data that I believe to be most important to make my report as specific & coherent as possible. I enjoy the challenge of preparing the report as it has provided me an opportunity to increase my understanding about foreign exchange activities of JBL (UGC Branch, Agargoan). Most of the information of this report comes from the annual report of the JBL, different books and also from websites. I sincerely hope that my analysis will aid in making the correct decision. I shall be pleased to answer any queries relating to this submission. Thank You. Sincerely Yours,
(Ashfaqur Rahman) ID No. : 102-11-1595 Batch: 26th Program: BBA Department of Business istration ©Daffodil International University
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Daffodil International University
Certificate of Approval This is to certify that Ashfaqur Rahman, ID: 102-11-1595, Batch: 26th, Major in Finance has prepared report on Foreign Remittance Activities of Janata Bank Limited. Based on internship program in the JBL, this report is an essential requirement to obtain Bachelor of Business istration (BBA) degree from the Daffodil International University. The internship program was supervised by me and the internship program is successfully completed. I also certify that the paper is an original one and has not been submitted elsewhere previously for publication in any form.
Sayma Suraiya Senior Lecturer Department of Business & Economic Daffodil International University
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Preface At the beginning I am very much grateful to Almighty Allah for giving me strength and opportunity and sound mind to complete the internship report in time. Then I would like to express my sincere and immense gratitude to everyone who contributed toward preparing and making thi study successful. I would like to express my gratitude to my internship supervisor Sayma Suraiya, Senior Lecturer, Department of Business istration, Daffodil International University. Her valuable suggestion and guideline helped me a lot to prepare in a well organizer manner. I determined the nature and amount of evidence accumulated after considering the unique circumstances of the engagement. Throughout this analysis I tried to conclude the diverse field of Foreign Exchange Activities and relate those with the form of a real business proposal. Again I think this internship report may be useful for accruing practical knowledge & taking right decision, while I will enter in the job field. Finally I would like to thank ones again to my supervisor Sayma Suraiya and all of my teachers for their continued on this process. I also would like to take this opportunity to thank Fazlul Hakh Bepari (Assistant manager) and all other employee of Janata Bank, UGC branch for their ing role. I also like to thank all the book writers and website publishers from where I got valuable information. Finally, I would like to thank my parents and my brother and sister whose influence an inspiration have enable me to complete this report from background.
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Abstract This Study is aimed at providing a comprehensive picture to the areas of Foreign Remittance Activities of Janata Bank Limited (JBL). The study has been divided into fourparts. These are: 1) Introduction of the report, 2) All about of Janata Bank Limited,3) Foreign Remittance Activities of Janata Bank Limited, 4) Problems and Recommendations. To achieve the objectives of the report, tried to analyze the credit activities and financial performance of JBL. For this purpose primary data has collected on interaction from employees and the secondary data for the study mainly comprise annual report and different journal. Statistics for five years have been gathered and analysis. At last some findings are identified. Banking sector of our country is playing a pivotal role in our economic situation. There are a large number of banks operating in our country successfully. Most of the banks are automated. As a result every bank has banking software to operate their task easily and efficiently. It also helps them to give effective and quick service to the customers. That is why I took this opportunity to know about the business process of Janata Bank Limited. As a mandatory requirement of the Bachelors of Business istration (BBA) program under, Daffodil International University this report entitled - " An Analysis of Foreign Remittance activities of Janata Bank Limited”:“A Study on U.G.C Branch"-is a contrived depiction of the 90 days internship program at Foreign Remittance activities of Janata Bank Limited (U.G.C Branch). After doing my internship, now I know about their Foreign Remittance Activities. I have got some problem. Like, Lack of skilled manpower, Lack of proper Rules & regulations for the governance of the bank, Lacks of modern money market instrument etc. For those problems I have some suggestion:-JBL need recruit more skilled employees, and need established an efficient Rules & Regulation and introduce modern money market instruments. In today’s world banks are plating a significant role in financial sector. The key to successful banking relies inability of balance many activities simultaneously.
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Table of Contents Contents Name 1 Chapter-I: Introduction
1.1 Introduction
Page No: 1-5 1
1.2 Background of the study
1
1.3 Scope of the Study
1
1.4 Objectives of the Study
2
1.5 Methodology of Study
3
1.6 Limitations of the Study
5
2 Chapter-II: Overview of Janata Bank Limited
6-23
2.1 Organization Overview
6
2.2 Vision of JBL
6
2.3 Mission of JBL
6
2.4 Branch Network
7
2.5 Strategy of JBL
8
2.6 Organizational Structure
8
2.7 Product & Service
11
2.8 Business Performance over the Last Few Decades
14
2.9 Capital Structure of JBL
14
2.10 Loan & Advances
15
2.11 Customer Service
21
2.12 Corporate governance
21
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2.13 Corporate Social responsibility
21
2.14 Credit Rating Report
22
2.15 Highlight on the Overall Activities on JBL
23
3 Chapter-III: Foreign Remittance Activities Janata Bank Limited
20-29
3.1 Foreign Remittance
20
3.2 Remittance Procedures of Foreign Currencies
20
3.3 Working of this Department
21
3.4 Formalities for opening foreign Currency (FC)
22
3.5 Import
23
3.6 Export
24
3.7 Foreign Remittance
25
3.8 Profit margin from Foreign Remittance Business in Janata Limited Ltd 3.9 Foreign Remittances comparison with other banks in 2013
26
Bank
4 Chapter-IV: Findings, Recommendation & Conclusion
28 30-33
4.1 Findings
30
4.2 Recommendation
32
4.3 Conclusion
33
Abbreviation :
34
Bibliography :
35
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List of Table List of Tables
Page No:
Table 01: Zone wise number of Branches
7
Table 02: Board of Directors Name of JBL
9
Table 03: Deposit Mix of JBL
12
Table 04: Overview of Deposits, Loans & Advance, and net profit over last few years
14
Table 05: Capital Structure of JBL
15
Table 06: Loans & Advances of JBL
16
Table 07: Credit Rating Report
18
Table 08: Highlight on the overall Activities of JBL
19
Table 09: Yearly Import position of JBL
23
Table 10: Yearly Export position of JBL
24
Table 11: Yearly Remittance position of JBL
25
Table 12: Profit Margin from Foreign Remittance business in JBL
26
Table 13: Foreign Remittances Turnover last six months in 2013
27
Table 14: Foreign Remittances comparison with other banks in 2013
29
List of Figure
List of Figure
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Figure 01: Structure of the Janata Bank
10
Figure 02: Comparative Deposit Mix of JBL
12
Figure 03: Capital Structure of JBL
15
Figure 04: Sectors of Loan & Advance of JBL
16
Figure 05: Yearly Import growth of JBL
24
Figure 06: Yearly Export growth of JBL
25
Figure 07: Yearly Remittance position of JBL
26
Figure 08: Profit Margin from Foreign Remittance business in JBL
27
Figure 09: Foreign Remittances Turnover last six months in 2013
28
Figure 10: Foreign Remittances comparison with other banks in 2013
29
Abbreviation
List of used in the Report JBL
: Janata Bank Limited
SWIFT
: Society for World Wide Inter Bank Financial Table Communication.
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CHIPS
: Clearing House Inter Bank Payment System.
ACU
: Asian Clearing Union.
TT
: Telegraphic Transfer.
OD
: On Demand.
MT
: Mail Transfer.
PFC
: Private Foreign Currency.
FCAD
: Foreign Currency A/C Dollar Export.
NRT
: Non Residence Taka.
FDD
: Foreign Demand Draft.
ADB
: Asian Development Bank.
VAT
: Value Added Tax
RMG
: Ready Made Garment.
ERC
: Export Registration Certificate.
CCI & E
: Chief Controller of Import & Export.
EPB
: Export Promotion Bureau.
IRC
: Import Registration Certificate.
HSC
: Harmonious System Code.
LC
: Letter of Credit.
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Chapter I Introduction 1.1 Introduction A bank is a financial institution offering deposits subject to withdrawal on demand and giving loans to the retail or corporate sector. There are different types of banks like commercial bank, investment bank, international bank and Islamic etc. My chosen bank is JBL, UGC Branch. It is one of the oldest public banks in Bangladesh known as “Janata Bank Limited”. Being one of the first generation public sectors Bank in Bangladesh, it started its commercial operations from 1971 and has since been able to establish one of the largest networks of 893 branches in six different districts. Though being the oldest, JBL is still not the market leader in the banking sector where the other new comers are doing very well in the industry. My internship report is based on the findings that why employees are switching from JBL and what can be done to cope up with this situation.
1.2 Background of the Study Each student of BBA program is required to undergo the internship program and prepare an internship report according to format specified by the supervising teacher. After completing my Bachelor of Business istration (BBA) as a student of BBA from Daffodil International University, I wanted to complete my Internship program from a reputed Bank which would be helpful for my future professional career. I got the opportunity to perform my internship in the JBL. I was sent to UGC Branch. It was a three months practical orientation program. This report is originated as the requirement of JBL.
1.3 Scope of the Study During these three months internship program in JBL, UGC Branch, almost all the desks have been observed. For that purpose I needed to get information from JBL Head Office. But I was placed into JBL, UGC Branch. There I had to work in its overall department wise function, especially foreign exchange department desks as a routine work. It was difficult to collect the information relevant my report, because the people of this Bank was so busy with their duty that
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they cannot be able to give me much time. Here I try to cover the activities and rules and regulation related to foreign exchange.
1.4 Objectives of the Study The main objective of the report is to know the Customer Satisfaction of the Foreign Exchange Department of Janata Bank Limited (UGC Branch). Another objective is to fulfill the requirements of the BBA program. For this like everyone I had to select an organization and I had chosen the Janata Bank Limited. Broad Statement The broad objective of this report is to prepare an internship report based on both the real life experience and the theoretical experiences on the topic of the “Activities of the Foreign Exchange Department of Janata Bank Limited. Specific objectives In the line with the specific objective, the detailed objective of the study may be spelled out as follows.
Knowing the regulation and deregulation regarding Foreign Exchange in Bangladesh.
Analyzing the export and import procedure maintained by Janata Bank Limited.
Identifying the problems in export and import operation in Janata Bank Limited.
Gaining the depth knowledge of import and export portfolio of the Bank.
Knowing about the various documents and procedures which are used in banking services of International Trade
Analyzeing the customer satisfaction of the LC opening department of Janata Bank Limited, UGC Branch.
It is not possible to carry out a research to figure out the overall “Activities of Foreign Exchange Department of Janata Bank Limited.”, because of some restrictions created by the authority. So I have narrowed down the topic and now it stands as “The Activities of Foreign Exchange Department of Janata Bank Limited”.
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1.5 Methodology of the Study This is an exploratory type of research. Data have been collected from two sources:
Primary Sources Secondary Sources
Primary Sources are as follows: Face to face conversation with the respective officers and staffs of the Branch. Informal conversation with the clients. Relevant file study as provided by the officers concerned Secondary Sources of data and information are: Annual Report of JBL Limited. Web site of Janata Bank Limited. Different ‘Procedure Manual’, published by Janata Bank Limited. 1.7 Target population of the study: Respective officers and remittance customers of the branch. Sample size of the study: 4 respective officers and 20 customers whose transaction was related to foreign exchange were sampling from the population. The total sample size is 24. Data collection method: In this report data collection method is direct interview method.
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Sampling techniques applied of the study: Non-random sampling technique was used for the purpose of study like a convenience sampling technique. Non-random samples selected on a basis other than probability considerations such as-expert judgment, convenience or some other criteria. Non-random sampling technique used instead of random sampling because convenient sampling is also useful in making pilot studies. Questions may be tested and preliminary information may be obtained by the chunk before the final sampling design is deducted upon. The customer whose transaction are related to foreign exchange activities are not regular customer sometimes they come in bank to collect remittance or loan money. So, that reasons nonrandom sampling technique is very useful for this report. The errors mainly arising at the stages of ascertainment and processing of data which are termed non-sampling errors are common both in complete enumeration and sample surveys. It is possible to reduce the non-sampling errors to a greater extant by using better organization and suitably trained personnel at the field of tabulation stages. This should be taken non-sampling errors of the following factors: 1.
Data specification being inadequate and inconsistent.
2.
Errors due to non-response.
3.
Inadequate scrutiny of the basic data.
4.
Inaccurate or inappropriate methods of interviews.
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1.6 Limitations of the Study: There are some limitations of the study1. Limitation of time was one of the most important factors to know all activities of the branch and prepare the report. 2. It was very difficult to collect the information from various personnel for their job constraint. 3. Every organization has their own secrecy that is not revealed to others. While collecting data i.e. interviewing the employees, they did not disclose much information for the Sake of the confidentially of the organization. 4. Another limitation of this report is Bank's policy of not disclosing some data and information for obvious reason, which could be very much useful. 5. Because of the limitation of information, some assumption was made. So there may be some personal mistake in the report.
Chapter II ©Daffodil International University
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Overview of Janata Bank Limited 2.1 Organizational Overview Brief History Janata Bank Limited (JBL), a commercial bank in Bangladesh. Sponsored by the Government, JBL started its operation in 1971 and has since been able to establish one of the largest networks of 893 branches among the first generation banks in the public sector. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Public Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy.
2.2 Vision of JBL To become the effective largest commercial bank in Bangladesh to socio-economic development of the country and to be a leading bank in South Asia.
2.3 Mission of JBL To become the leader in the industry attaining highest level of customer satisfaction with strong corporate culture and good governance. To maximize profit with steady growth ensuring major market share. To engineer enterprise and creativity in business and industry with a commitment to social responsibility. To introduce fully automated systems through integration of ICT. To maintain high moral and ethical standard and participative management. To nurture an enabling environment where the innovativeness and performance is rewarded. To develop and retain a quality workforce through effective HRM system.
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To offer an array of products & services in the search for excellence and create an impressive economic value.
2.4v Branch Network The bank has been operating with a network of 893 branches all over the country as on 31 th December 2013. In the year 2010, there were 861 branches all over the country & then the bank opened 32 new branches. Here shows zone wise branch distribution of JBL:
Office / Zones
Number
Dhaka
261
Chittagong
203
Rajshahi
146
Khulna
111
Barishal
41
Sylhet
59
Rangpur
72 Total=
893
Table 01: Zone wise number of Branches
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2.5 Strategies of JBL
To strive for customer best satisfaction & earn confidence. To manage and operate the bank in the most effective manner. To identify customers’ needs and monitor their perception towards meeting those needs. To review and update policies, procedures and practices to enhance the ability to extend better service to the customer. To train and develop all employees and provide them adequate resource so that the customer needs are reasonably addressed. To promote organizational efficiency by communicating company plan, policies and producers openly to the employees in a time fashion. To cultivate a congenial working environment. To diversify portfolio both the retail and wholesale market.
2.6 Organizational Structure: There are different wings to consist the organizational structure of JBL. There are – Board of Directors Board Committees Executive Committees Policy Committees Management Team Board of Directors The Board of Directors is composed of 13 (Thirteen) headed by a Chairman. The Directors are representatives from both public and private sectors. The name and position of directors as of 31 December 2013 are as under. No.
Name of Directors
Position
1.
Professor Dr. Abul Barkat
Chairman
2.
Dr. Jamaluddin Ahmed, FCA
Director
3.
Mr. Md Emdadul Hoque
Director
4.
Mr. Nagibul Islam Dipu
Director
5.
Dr A M Debnath
Director
6.
Sayed Bazlul Karim, B.P.M.
Director
7.
Prof. Mohammad Moinuddin
Director
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8.
Mr. Md. Abu Naser
Director
9.
Msr. Sangria Ahmed
Director
10.
Prof. Dr. Nitai Chanra Nag
Director
11.
Mr. A. K. M. Kamrul Islam, FCA
Director
12.
Mr. Md. Mahabubur Rahman Hiron
Director
13.
Mr. S.M Aminur Rahman
Managing Director
Table 02: Board of Directors Name of JBL
Policy Committee Al matters relating to the principles, rules and regulation, ethics etc. for operation and management of the bank are recommended by the committee to the board of directors.
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Structure of the Janata Bank: CEO & Managing Director
Deputy Managing Director
General Manager
Deputy General Manager Assistant General Manager
First Assistant General Manager Senior Executive Officer Executive Officer Assistant Executive Officer
Assistant Executive Officer (Teller) Assistant Officer Grade-1 Assistant Officer Grade-2 Stuff Catagorey-1
Stuff Catagorey-2
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Figure 01: Structure of the Janata Bank
2.7 Products & Services The Bank provides a broad range of financial services to its customers and corporate clients. The products and services JBL offers are provided in the Appendix. However, description of some products is given below: JBL has several types of deposits for its customers. LikeSavings Bank (SB) This is an interest bearing and only individuals can open this type of s. Customers can deposit or withdraw money from their SB ten times in a month. A certain amount of interest is given in the Savings with interest where no interest is given in the Non-interest savings . Current Deposit (CD) It is popularly known as Current . Any individual, companies, firm, are eligible to open this type of in its own name. This is non-interest bearing . The holder can deposit or withdraw money from his or her any time he or she wants. Short Term Deposit (STD) This is opened and operated for short term and for specific purpose like salary payment etc. It is also an interest bearing and where rate of interest is generally below the savings rate.
Fixed Deposit Receipt (FDR) Individuals, Firms, Companies, Associations may open this . The deposit is taken for a specific fixed period of time, such as 3 months, 6 months, 1-year etc. Deposit mix of the year 2012 & 2013 was as follows: ©Daffodil International University
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Items
2013 Tk. ( in million)
Savings Bank Deposits Fixed Deposits Current Deposits Short Term Deposit Other Deposit Total Deposit
2012 Tk. ( in million)
93526 320344 14609 49940 116 478535
89456 257079 27910 33928 1394 409767
Table 03: Deposit Mix of JBL
Figure 02: Comparative Deposit Mix of JBL There are also few schemes JBL is offering its customers. Such as JBL DPS Plus JBL Earning Plus JBL Multi Millionaire JBL DPS Plus: In this scheme, customers are required to deposit a certain amount of money which they can withdraw after 5 years including the profit. • Monthly installment starts from Tk. 500 to Tk. 25,000. • Customers can take 90% of the deposit as loan.
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• Applicant should be at least 18 years old. JBL Earning Plus: This is more flexible for the customers than the JBL DPS Plus if they want to withdraw their money after a shorter period. The duration of this scheme would be 3 or 5 years. Customers can withdraw money from their after each 1 or 3 months along with the profit. • Minimum Tk. 50,000 and maximum Tk. 50,00,000 is required to open • Customers can take 90% of the deposit as loan • Applicant should be at least 18 years old • Older Citizens (55 years above) will get .25% interest more.
JBL Multi Millionaire: In this scheme, the duration would be 5 to 15 years with different size of monthly installment. When the will be matured, customers can get 10 Lac to 1 Corer Taka depending on which category they chose. • Monthly installment would be Tk. 5,150 to Tk. 60,000. • Customers can take 90% of the deposit as loan. • Applicant should be at least 18 years old.
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2.8 Business Performance over the last Few Decades A comparative overview of deposits, loans & advances and net profit over the last few years is given below: Date December 31, 2009 December 31, 2010 December 31, 2011 December 31, 2012 December 31, 2013
Deposit ( Tk. in million) 246175
Loans & Advances (Tk. in million) 166359
Net Profit (Tk. in million) 2804
286566
225732
4908
361676
257801
4445
409767
305339
(15280)
478535
285747
9551
Table 04: Overview of Deposits, Loans & Advance, and net profit over last few years
2.9 Capital Structure of JBL The authorized Capital of JBL is Tk. 2000 million during the year 2013. The paid up capital of the Bank has been increased to Tk. 19140 million from Tk. 11000 million. The government of Bangladesh held total no of shares 120 worth TK 12000. Bank & other financial institutions held total 6312800. Remaining share holders held total 7,355,192 shares worth TK 735,519,200. The total eqity of the holders of the bank at the end of the end of the year 2009 stood at TK 3455.1 million and in 2010 stood at TK 2543 million.
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A comparative overview of capital structure over two years is given below-
Particulars Authorized Capital Paid-Up Capital Statutory Reserve Other reserve Retained Earnings
2012 ( Tk. in million)
2011(Tk. in millions)
20000 19140 7919 10990 (933)
20000 11000 5968 10526 (10017)
Table 05: Capital Structure of JBL
Figure 03: Capital Structure of JBL
2.10 Loan and Advances JBL’s loans and advances increased by Tk.million during the year 2012 and stood at Tk. million which was Tk million in 2011 showing a substantial growth of % over the previous year. Concentration of loans and advances was well managed and details of concentration are given at notes to the financial statements. The ratio no performing loan was 1.79% which is much lower than the industry average. The Bank continued its participation in different credit program for financing in new industrial projects, working capital, trade finance, international trade etc. At the end of the year the credit deposit ratio 82.81% which was 82.75% at the closing of 2010.
Sector wise position of Loans and Advances on 31 December 2013 ©Daffodil International University
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Sectors of Loans & Advances Agriculture Industrial Lending (Team) Industrial Lending(WC) Commercial Lending Special Program Housing Lease Financing Bills Discounted & Purchaged Others Total: Loans & Advances
Public
11
11
Private
Total
1142 4910.1 711.1 29106 4832.1 1410 512.4 4533.2 3317.7 50474.6
1142 4910.10 711.1 29106 4832.1 1410 512.4 4533.2 3317.7 50474.6
Table 06: Loans & Advances of JBL
Figure 04: Sectors of Loan & Advance of JBL
2.14 Customer Services:
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The Customer service is the top priority of the Bank. the Banks Policy is to make all employees more proactive to the clients irrespective of their socio-economic background. The employees are self-motivated and committed to do their job.
2.15 Corporate Governance Corporate Governance is the system by which companies are directed and controlled to the best interest of the stakeholders, which describes the nature and extent of ability of the people and institution engaged in the business. Corporate Governance ensures fairness, transparency and integrity of the management. It is the way of life, rather than a mere legal compulsion. It further inspires and strengthens investor’s confidence and commitment to the company. In fact, corporate governance leads to the good governance and good governance is an integral part of the economic development of a country.
2.16 Corporate Social Responsibility Janata Bank Limited, one of the largest banks of the country is highly concerned about the assimilation of social cause in its core process. As a part of their commitment to create real value in a changing world, they are determined to hold their selves able for the social, environmental and economic impacts of our operations, and they are committed to developing policies, business practices and social services which drive change in our industry. They use the power of our brand, the energy and ion of their people and the scale of our business to create meaningful changes in society.
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2.17 Credit Rating Report CRISL has rated the Bank based on December 31, 2011 with ‘AA-`(pronounced as double A minus) in the Long Term and ST-2 for the Short Term. The date of rating was April 09, 2012. Year
Long Term Rating
Short Term Rating
2011
AA-
ST -2
2010
A+
ST -2
Table 07: Credit Rating Report
JBL has been rated as AA- which means Adequate Safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in higher categories. The Short term rating ST-2 indicates high certainty of timely payment. Liquidity factors are strong and ed by good fundamental protection factors. Risk factors are very small.
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2.18 Highlights on the overall Activities of JBL: Particulars Paid-up Capital Total Capital
31 December 2013 (Tk. in millions) 19,140.00
31 December 2012 (Tk. in millions) 11,000.00
34,301.03
11,780.36
908.71
(20,117.67)
Total Assets
5,86,082.98
5,11,129.41
Total Deposits
4,78,535.57
4,09,767.09
Total Loans & Advances
2,85,747.65
3,05,339.57
Total Liabilities
5,48,966.78
4,93,952.75
82.81
82.75
1.79
1.20
12,127.10
14,533.80
Profit after Tax & Provision
9,551.39
(15280.38)
Amount of Classified Loans & Advances during the year
31766.86
53201.69
1,93,269.66
1,08,342.04
22,291.78
34,012.05
7,584.19
(15,287.92)
9.23%
8.76%
Reserve fund
1,967.20
7.58
Net-Interest Margin (NIM)
1,976.84
6,739.96
Return on Investment (ROI) (%)
9.39%
8.01%
Return on Assets (ROA) (%)
1.42%
-3.5%
Net Asset Value per share
193.92
158.88
Income from Investments
13,736.50
7,811.43
Earning per share (Taka)
86.31
(138.91)
Net Operating Income Per share (Taka)
63.36
132.13
191.40
110.00
Capital Surplus/(Deficit)
Credit Deposit Ratio (%) Percentage of Classified loans against Total Loans & Advances
Operating Profit
Investments Provision maintains for Loans & Advance Retained Earnings Cost of Fund (%)
Number of Shares
Table 08: Highlight on the overall Activities of JBL
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Chapter III Foreign Remittance Activities Janata Bank Limited 3.1 Foreign Remittance: This bank is authorized dealer to deal in foreign exchange business. As an authorized dealer, a bank must provide some services to the clients regarding foreign exchange and this department provides these services. The basic function of this department are outward and inward remittance of foreign exchange from one country to another country. In the process of providing this remittance service, it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of exchange, which the banker quotes, one for buying and another for selling. In such transactions the foreign currencies are like any other commodities offered for sales and purchase, the cost (convention value) being paid by the buyer in home currency the legal tender.
3.2 Remittance procedures of foreign currency: There are two types of remittance: 1. Inward remittance. 2. Outward remittance. 1. Inward Foreign Remittance: Inward remittance covers purchase of foreign currency in the form of foreign T.T., D.D, and bills, T.C. etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C.
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2. Outward Foreign Remittance: Outward remittance covers sales of foreign currency through issuing foreign T.T. Drafts, Travelers Check etc. as well as sell of foreign exchange under L/C and against import bills retired.
3.3 Working of this department: 1. Issuance of TC, Cash Dollar /Pound 2. Issuance of FDD, FTT & purchasing, Payment of the same. 3. port endorsement. 4. Encashment certificate. 5. F/C opening & filing.
Modes: The remittance process involves the following four modes Cash Remittance Dollar/ Pound Sell Bank sells Dollar / Pound for using in abroad by the purchaser. The maximum amount of such sell is mentioned in the Bangladesh Bank publication of `Convertibility of Taka for Currency Transactions in Bangladesh'. Purchase Bank can purchase dollar from resident and non - resident Bangladeshi and Foreigner. Most dollars purchased comes from realization of Export Bill of Exchange. Traveler's Cheque (TC) Issue of TC TC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand. Buying of TC If any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC. Telex Transfer Outward TT It remits fund by tested TT via its foreign correspondence bank in which it is maintaining its NOSTRO . Incoming TT It also makes payment according to telegraphic message of its foreign correspondence bank from the corresponding VOSTRO . Foreign Demand Draft Bank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO . Bank also makes payment on DD drawn on this bank by its foreign correspondence bank through the VOSTRO .
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3.4 Formalities for opening foreign currency (FC) : The AD may without prior approval of the Bangladesh Bank open Foreign Currency (FC) in the name of: 1. Bangladesh national residing abroad. 2. Foreign nationals residing abroad/ in Bangladesh and also foreign firms 3. ed abroad and operating in Bangladesh and abstract foreign missions and their expatriate employees. 4. Resident of Bangladesh nationals working with the foreign / international organization operating in Bangladesh provided their salary in paid in foreign currency. Head Office, International Division (HO/ID) Under prior arrangement, the remitting company remits their draft printed at banks international division through the website and delivered the same to he beneficiary’s home address. HO/ID arranges all the draft according to the branch, and then provides TT to the branch through internet. This two types: Cash Payment: In this system customer comes with a pin no. and any photo identify. Officer matches the pin no. with TT reference no. When the no.. match, then officer give a form. Customrs dully fulfill the form and collect money from the cash. Holder: In this method customer must be an holder of the branch. Officer matches the no & name of the match, then officer directly transfer the money in the
Other bank Under prior arrangement, the remitting company remits their draft printed at banks international division through the website and delivered the same the beneficiary’s home address. In the event of beneficiary’s being maintained with other banks the proceeds are placed into payees within the next working day in the metropolitan cities and division HQ and within only 3
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working days at the places of the country by using DD/PO/MT subject to availability of courier services.
3.5 Import From the following chart we can see that, the lowest amount of import by Janata Bank Limited is Tk. 118525 million in 2009. From 2009 it has started to increase & in 2011 the import was in highest position which is Tk. 197285.00 million. Last year in 2013 JBL experienced a growth rate of 18.92%. So, the yearly import position has improved gradually.
(Tk. In million)
Year
Import
Growth Rate
2009
118525.00
2010
183744.00
55.03%
2011
197285.00
7.37%
2012
188284.00
-4.56%
2013
176671.00
-6.17%
-
Table 09: Yearly Import position of JBL
Import growth last 5 years
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Figure 05: Yearly Import growth of JBL
3.6 Export In case of last five years export trends, we can see a handsome growth rate in each year. In 2009 – 2010, the growth rate is about 33.68% while in the year 2013, it reached to its peak at Tk. 153252.00 at a growth rate of -2.09%. It is just five years and such a good growth rate indicates how good this bank is performing especially in foreign exchange.
Year
Export
Growth Rate
2009
88653.00
2010
118515.00
33.68%
2011
153758.00
29.74%
2012
156525.00
1.80%
2013
153252.00
-2.09%
-
Table 10: Yearly Export position of JBL
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Figure 06: Yearly Export growth of JBL
3.7 Foreign Remittances The amount of remittance by Janata Bank Limited is Tk. 56,190.00million in 2009. From 2009 it has started to decrease & in 2011 the remittance was in lowest position which is Tk. 5452.10 million. Last year in 2012 JBL experienced a negative growth rate of -38.99%. So, the yearly remittance position has dropped regularly.
Year
Remittance
Growth Rate
2009
56190.00
2010
52640.00
-6.32%
2011
72285.00
37.32%
2012
100089.00
38.46%
2013
103982.00
3.89%
-
Table 11: Yearly Remittance position of JBL
Remittance of last 5 years
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Figure 07: Yearly Remittance position of JBL
3.8 Profit margin from Foreign Remittance Business in Janata Bank Limited Ltd. The volume of foreign remittance in the year 2013 stood at Tk. 103982.00 million in Janata Bank Limited Ltd. In this foreign remittance JBL earn profit BDT Tk 25194.84 in the year 2013. The volume of foreign remittance in the year 2012 stood at Tk. 100089.00 million in Janata Bank Limited Ltd. In this foreign remittance JBL earn profit BDT Tk 24281.59 in the year 2012. In the following show profit margin table from Foreign Remittance Business in Janata Bank Limited Ltd. (TK in million) Year
Total Remittance in JBL
Earned Profit
2013
103982.00
25194.84
2012
100089.00
24281.59
Table 12: Profit Margin from Foreign Remittance business in JBL
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Figure 08: Profit Margin from Foreign Remittance business in JBL
Foreign Remittances Turnover last six months in 2013: In the following we show graphically monthly foreign remittance total turnover last six months in 2013. (UGC Branch of JBL) Month
Monthly turnover in foreign remittance Tk.
January
1,22,45,213
February
1,21,11,797
March
1,00,87,435
April
1,05,47,347
May
1,14,87,548
June
1,00,00,041
Table 13: Foreign Remittances Turnover last six months in 2013
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Figure 09: Foreign Remittances Turnover last six months in 2013 The volume of foreign remittance in the year 2013 last six months turnover was January stood at 1,22,45,213 BDT, February stood at 1,21,11,797 BDT, March stood at 1,00,87,435 BDT, April stood at 1,05,47,347 BDT, May stood at 1,14,87.548 BDT, June stood at1,00,00,041 BDT in Janata Bank Limited Ltd. In the above discussion we see that in the mont January Janata Bank Limited Ltd earned highest remittance turnover and in the month June JBL earned lowest remittance turnover.
3.9 Foreign Remittances comparison with other banks in 2013: Foreign remittance performance comparison with other five banks is showing below with graph Bank
Foreign Remittance 2013 (Tk. In million)
Janata Bank Limited
42,142.20
AB Bank Limited
18,322.47
NCC Bank Limited
16,323.00
South East bank Limited United Commercial Bank Limited
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4,508.10 16,802.80 Page 28
Bank Asia Limited
34,334.40
Table 14: Foreign Remittances comparison with other banks in 2013
Figure 10: Foreign Remittances comparison with other banks in 2013
In this graph, we can see Janata Bank Limited is the highest position according to earning remittance with Tk. 42142.20 (Tk. in million) and 2 nd highest position is United Commercial (UCB) Bank with Tk. 34334.40 (Tk. in million). South East Bank is staying in lowest position with Tk. 4508.10 (Tk. in million).
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Findings, Recommendation & Conclusion 4.1 Findings In today's world we consider time as money. So it needs prompt action in making disbursement and collection of payment. In JBL introduction of Speed Cash/Western Union money transfer system of Foreign Remittance may resolve this problem. Introducing of Western Union money transfer system at the earliest to expedite payment of remittance. Because JBL has
Strong istration. Strongly follow the rules and regulation of banking . Cordial and very helpful officials. Extraordinary banking environment. Strong determination of achieve target. Well trained marketing people.
Some of the major problems that JBL is currently experiencing may be summarized as a) Lack of a full fledged core banking solution is resulting in lag in updating of exchange position on event by event basis. It is also impeding the FX fund requirement projection to a great degree. Reconciliation of Nostro with their respective shadows is getting delayed. b) Human error in FX voucher preparation and subsequent posting in respective GL heads at head office end is hampering proper foreign exchange management process and hence Foreign Exchange operation. c) Mistakes in Daily Exchange Position Report from branch end often results in faulty data which translates into faults in Foreign Exchange Operation. d) Competition in the banking sector is immense; sometimes undue facilities are requested by import and export clients. Regardless of whether we decide to entertain such requests or not Foreign Exchange Operation is hampered. e) JBL has no Online Banking System yet for which they cannot provide customer service promptly.
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f) JBL does not maintain database of other banks' branches for which communication with other bank in connection with payment of Foreign Remittance cannot be made smoothly. g) Problem solves section of Foreign Remittance in Janata Bank Limited Ltd. is not so organized like other banks. Shortage of equipment and manpower hamper its problem-solves operation.
4.2 Recommendations
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From the experience of concluding the project a number of recommendations may be given which may be useful or the newly entrance to offering these services of Foreign Exchange (Export and Import) such as: Acquiring Foreign Remittance depends on prompt customer service and instant payment, which requires Online Banking system. I recommend introducing of Online Banking system to attract customer and provide better customer service. Maintaining of other banks' database is highly recommended. For more security customer submitted their necessary papers that is verifies by responsible officers before opening L/C that is very essential for Export or Import goods. Bank provides the facility and gives opportunity to transaction a certain sum of money in credit time. For protecting the robbing it is needed to program a safety alarm system in the required foreign exchange, which is connected to the bank. Problem solves section should have more equipped along with talented personnel. A special customer appointed to the Bank for guiding the s and recording their complaints and reporting to the management. JBL should introduce ATM/Debit/Credit card and Evening banking facility in all of their branches. JBL should exercise marketing promotion practice.
4.3 Conclusions JBL is one of the commercial banks in the banking sector of Bangladesh. It is not easy to develop a HRM System for a bank because they do not have so many departments. So, all the theories of HR are not very easy to implement in the banking sector. But we have tried a lot. In this sector the organization itself is very small compare to other industries. In the case of performance appraisal system the organization should follow the system of other foreign bank in the country. The matter ©Daffodil International University
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of regret that the organization is not up to the mark and the banking system is not really come out from the traditional banking system. It should be changed. We have to find out the fact that what is the employees of bank want from the organization and what bank want from them. If this two is balanced performance will automatically improved. Janata Bank Limited (JBL) is playing a vital role in financing import and exports of the country. Without Bank's co-operation, it is not possible to run any business or production activity in this age. Exports and import need finance in various stages of their activities. Export and import financing are letter of credit (L/C), payment against documents (PAD), loan against imported merchandise (LIM) etc.; all these facilities are provided by JBL. For this purpose Bank's consider the borrower's business standing, integrity, liability with the bank term and conditions of the L/C. There are lots of risks involved in foreign business. So, the Janata Bank Limited (JBL) has to clearly justify the customers from a neutral point and gather the current information about the market. Finally, JBL has concentrated on above foreign remittance findings and recommendations. Various Constraints also found in the system and effort comes out from me to suggest some remedies to overcome that obstacles.
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Bibliography 1. Bank Bulletin. 2. JBL Annual Report 2009, 2010, 2011, 2012, 2013. 3. Guideline of Bangladesh Bank. 4. Janata Bank Limited Banking Manuals. 5. Information from JBL Training Institution at Mirpur. 6. Web site : www.JBL.com. 7. Madura, Jeef (2006) “International Financial Management”, 7th edition. Published by South-Western.
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Freiogn Remittance Activities of
Janata Bank Limited (UGC Branch, Agargoan)
Daffodil International University Date of submission: 10th December, 2014
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An Internship Report Submitted by
Ashfaqur Rahman ID: 102-11-1595
Performed at
Janata Bank Limited UGC Branch, Agargoan, Dhaka.
A Study Presented in Partial Fulfilment Of the Rezuirements for the degree Bachelor of Business istration
Major in FINANCE
Department of Business istration
Daffodil International University
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An Internship report Performed at
Janata Bank Limited UGC Branch, Agargoan, Dhaka.
Course Title: Internship Credit: 06 Submitted by
Ashfaqur Rahman ID: 102-11-1595
Program: B.B.A Department of Business istration
Daffodil International University
Submitted to
Sayma Suraiya Senior Lecturer Faculty of Business and istration
Daffodil International University
Daffodil International University
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Date of submission: 10th December, 2014
Letter of Transmittal Date: 10th December, 2014 Sayma Suraiya Senior Lecturer Faculty of Business istration Daffodil International University Dhaka, Bangladesh. Subject: Submission of Internship Report. Dear Mam, It is my great pleasure that I submit the internship report on Foreign Remittance Activities of Janata Bank Limited as partial requirement of internship program under BBA curriculum. I have tried my best to follow your guidelines in every aspect of planning and preparing the report. I have collected data that I believe to be most important to make my report as specific & coherent as possible. I enjoy the challenge of preparing the report as it has provided me an opportunity to increase my understanding about foreign exchange activities of JBL (UGC Branch, Agargoan). Most of the information of this report comes from the annual report of the JBL, different books and also from websites. I sincerely hope that my analysis will aid in making the correct decision. I shall be pleased to answer any queries relating to this submission. Thank You. Sincerely Yours,
(Ashfaqur Rahman) ID No. : 102-11-1595 Batch: 26th Program: BBA Department of Business istration ©Daffodil International University
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Daffodil International University
Certificate of Approval This is to certify that Ashfaqur Rahman, ID: 102-11-1595, Batch: 26th, Major in Finance has prepared report on Foreign Remittance Activities of Janata Bank Limited. Based on internship program in the JBL, this report is an essential requirement to obtain Bachelor of Business istration (BBA) degree from the Daffodil International University. The internship program was supervised by me and the internship program is successfully completed. I also certify that the paper is an original one and has not been submitted elsewhere previously for publication in any form.
Sayma Suraiya Senior Lecturer Department of Business & Economic Daffodil International University
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Preface At the beginning I am very much grateful to Almighty Allah for giving me strength and opportunity and sound mind to complete the internship report in time. Then I would like to express my sincere and immense gratitude to everyone who contributed toward preparing and making thi study successful. I would like to express my gratitude to my internship supervisor Sayma Suraiya, Senior Lecturer, Department of Business istration, Daffodil International University. Her valuable suggestion and guideline helped me a lot to prepare in a well organizer manner. I determined the nature and amount of evidence accumulated after considering the unique circumstances of the engagement. Throughout this analysis I tried to conclude the diverse field of Foreign Exchange Activities and relate those with the form of a real business proposal. Again I think this internship report may be useful for accruing practical knowledge & taking right decision, while I will enter in the job field. Finally I would like to thank ones again to my supervisor Sayma Suraiya and all of my teachers for their continued on this process. I also would like to take this opportunity to thank Fazlul Hakh Bepari (Assistant manager) and all other employee of Janata Bank, UGC branch for their ing role. I also like to thank all the book writers and website publishers from where I got valuable information. Finally, I would like to thank my parents and my brother and sister whose influence an inspiration have enable me to complete this report from background.
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Abstract This Study is aimed at providing a comprehensive picture to the areas of Foreign Remittance Activities of Janata Bank Limited (JBL). The study has been divided into fourparts. These are: 1) Introduction of the report, 2) All about of Janata Bank Limited,3) Foreign Remittance Activities of Janata Bank Limited, 4) Problems and Recommendations. To achieve the objectives of the report, tried to analyze the credit activities and financial performance of JBL. For this purpose primary data has collected on interaction from employees and the secondary data for the study mainly comprise annual report and different journal. Statistics for five years have been gathered and analysis. At last some findings are identified. Banking sector of our country is playing a pivotal role in our economic situation. There are a large number of banks operating in our country successfully. Most of the banks are automated. As a result every bank has banking software to operate their task easily and efficiently. It also helps them to give effective and quick service to the customers. That is why I took this opportunity to know about the business process of Janata Bank Limited. As a mandatory requirement of the Bachelors of Business istration (BBA) program under, Daffodil International University this report entitled - " An Analysis of Foreign Remittance activities of Janata Bank Limited”:“A Study on U.G.C Branch"-is a contrived depiction of the 90 days internship program at Foreign Remittance activities of Janata Bank Limited (U.G.C Branch). After doing my internship, now I know about their Foreign Remittance Activities. I have got some problem. Like, Lack of skilled manpower, Lack of proper Rules & regulations for the governance of the bank, Lacks of modern money market instrument etc. For those problems I have some suggestion:-JBL need recruit more skilled employees, and need established an efficient Rules & Regulation and introduce modern money market instruments. In today’s world banks are plating a significant role in financial sector. The key to successful banking relies inability of balance many activities simultaneously.
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Table of Contents Contents Name 1 Chapter-I: Introduction
1.1 Introduction
Page No: 1-5 1
1.2 Background of the study
1
1.3 Scope of the Study
1
1.4 Objectives of the Study
2
1.5 Methodology of Study
3
1.6 Limitations of the Study
5
2 Chapter-II: Overview of Janata Bank Limited
6-23
2.1 Organization Overview
6
2.2 Vision of JBL
6
2.3 Mission of JBL
6
2.4 Branch Network
7
2.5 Strategy of JBL
8
2.6 Organizational Structure
8
2.7 Product & Service
11
2.8 Business Performance over the Last Few Decades
14
2.9 Capital Structure of JBL
14
2.10 Loan & Advances
15
2.11 Customer Service
21
2.12 Corporate governance
21
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2.13 Corporate Social responsibility
21
2.14 Credit Rating Report
22
2.15 Highlight on the Overall Activities on JBL
23
3 Chapter-III: Foreign Remittance Activities Janata Bank Limited
20-29
3.1 Foreign Remittance
20
3.2 Remittance Procedures of Foreign Currencies
20
3.3 Working of this Department
21
3.4 Formalities for opening foreign Currency (FC)
22
3.5 Import
23
3.6 Export
24
3.7 Foreign Remittance
25
3.8 Profit margin from Foreign Remittance Business in Janata Limited Ltd 3.9 Foreign Remittances comparison with other banks in 2013
26
Bank
4 Chapter-IV: Findings, Recommendation & Conclusion
28 30-33
4.1 Findings
30
4.2 Recommendation
32
4.3 Conclusion
33
Abbreviation :
34
Bibliography :
35
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List of Table List of Tables
Page No:
Table 01: Zone wise number of Branches
7
Table 02: Board of Directors Name of JBL
9
Table 03: Deposit Mix of JBL
12
Table 04: Overview of Deposits, Loans & Advance, and net profit over last few years
14
Table 05: Capital Structure of JBL
15
Table 06: Loans & Advances of JBL
16
Table 07: Credit Rating Report
18
Table 08: Highlight on the overall Activities of JBL
19
Table 09: Yearly Import position of JBL
23
Table 10: Yearly Export position of JBL
24
Table 11: Yearly Remittance position of JBL
25
Table 12: Profit Margin from Foreign Remittance business in JBL
26
Table 13: Foreign Remittances Turnover last six months in 2013
27
Table 14: Foreign Remittances comparison with other banks in 2013
29
List of Figure
List of Figure
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Figure 01: Structure of the Janata Bank
10
Figure 02: Comparative Deposit Mix of JBL
12
Figure 03: Capital Structure of JBL
15
Figure 04: Sectors of Loan & Advance of JBL
16
Figure 05: Yearly Import growth of JBL
24
Figure 06: Yearly Export growth of JBL
25
Figure 07: Yearly Remittance position of JBL
26
Figure 08: Profit Margin from Foreign Remittance business in JBL
27
Figure 09: Foreign Remittances Turnover last six months in 2013
28
Figure 10: Foreign Remittances comparison with other banks in 2013
29
Abbreviation
List of used in the Report JBL
: Janata Bank Limited
SWIFT
: Society for World Wide Inter Bank Financial Table Communication.
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CHIPS
: Clearing House Inter Bank Payment System.
ACU
: Asian Clearing Union.
TT
: Telegraphic Transfer.
OD
: On Demand.
MT
: Mail Transfer.
PFC
: Private Foreign Currency.
FCAD
: Foreign Currency A/C Dollar Export.
NRT
: Non Residence Taka.
FDD
: Foreign Demand Draft.
ADB
: Asian Development Bank.
VAT
: Value Added Tax
RMG
: Ready Made Garment.
ERC
: Export Registration Certificate.
CCI & E
: Chief Controller of Import & Export.
EPB
: Export Promotion Bureau.
IRC
: Import Registration Certificate.
HSC
: Harmonious System Code.
LC
: Letter of Credit.
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Chapter I Introduction 1.1 Introduction A bank is a financial institution offering deposits subject to withdrawal on demand and giving loans to the retail or corporate sector. There are different types of banks like commercial bank, investment bank, international bank and Islamic etc. My chosen bank is JBL, UGC Branch. It is one of the oldest public banks in Bangladesh known as “Janata Bank Limited”. Being one of the first generation public sectors Bank in Bangladesh, it started its commercial operations from 1971 and has since been able to establish one of the largest networks of 893 branches in six different districts. Though being the oldest, JBL is still not the market leader in the banking sector where the other new comers are doing very well in the industry. My internship report is based on the findings that why employees are switching from JBL and what can be done to cope up with this situation.
1.2 Background of the Study Each student of BBA program is required to undergo the internship program and prepare an internship report according to format specified by the supervising teacher. After completing my Bachelor of Business istration (BBA) as a student of BBA from Daffodil International University, I wanted to complete my Internship program from a reputed Bank which would be helpful for my future professional career. I got the opportunity to perform my internship in the JBL. I was sent to UGC Branch. It was a three months practical orientation program. This report is originated as the requirement of JBL.
1.3 Scope of the Study During these three months internship program in JBL, UGC Branch, almost all the desks have been observed. For that purpose I needed to get information from JBL Head Office. But I was placed into JBL, UGC Branch. There I had to work in its overall department wise function, especially foreign exchange department desks as a routine work. It was difficult to collect the information relevant my report, because the people of this Bank was so busy with their duty that
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they cannot be able to give me much time. Here I try to cover the activities and rules and regulation related to foreign exchange.
1.4 Objectives of the Study The main objective of the report is to know the Customer Satisfaction of the Foreign Exchange Department of Janata Bank Limited (UGC Branch). Another objective is to fulfill the requirements of the BBA program. For this like everyone I had to select an organization and I had chosen the Janata Bank Limited. Broad Statement The broad objective of this report is to prepare an internship report based on both the real life experience and the theoretical experiences on the topic of the “Activities of the Foreign Exchange Department of Janata Bank Limited. Specific objectives In the line with the specific objective, the detailed objective of the study may be spelled out as follows.
Knowing the regulation and deregulation regarding Foreign Exchange in Bangladesh.
Analyzing the export and import procedure maintained by Janata Bank Limited.
Identifying the problems in export and import operation in Janata Bank Limited.
Gaining the depth knowledge of import and export portfolio of the Bank.
Knowing about the various documents and procedures which are used in banking services of International Trade
Analyzeing the customer satisfaction of the LC opening department of Janata Bank Limited, UGC Branch.
It is not possible to carry out a research to figure out the overall “Activities of Foreign Exchange Department of Janata Bank Limited.”, because of some restrictions created by the authority. So I have narrowed down the topic and now it stands as “The Activities of Foreign Exchange Department of Janata Bank Limited”.
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1.5 Methodology of the Study This is an exploratory type of research. Data have been collected from two sources:
Primary Sources Secondary Sources
Primary Sources are as follows: Face to face conversation with the respective officers and staffs of the Branch. Informal conversation with the clients. Relevant file study as provided by the officers concerned Secondary Sources of data and information are: Annual Report of JBL Limited. Web site of Janata Bank Limited. Different ‘Procedure Manual’, published by Janata Bank Limited. 1.7 Target population of the study: Respective officers and remittance customers of the branch. Sample size of the study: 4 respective officers and 20 customers whose transaction was related to foreign exchange were sampling from the population. The total sample size is 24. Data collection method: In this report data collection method is direct interview method.
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Sampling techniques applied of the study: Non-random sampling technique was used for the purpose of study like a convenience sampling technique. Non-random samples selected on a basis other than probability considerations such as-expert judgment, convenience or some other criteria. Non-random sampling technique used instead of random sampling because convenient sampling is also useful in making pilot studies. Questions may be tested and preliminary information may be obtained by the chunk before the final sampling design is deducted upon. The customer whose transaction are related to foreign exchange activities are not regular customer sometimes they come in bank to collect remittance or loan money. So, that reasons nonrandom sampling technique is very useful for this report. The errors mainly arising at the stages of ascertainment and processing of data which are termed non-sampling errors are common both in complete enumeration and sample surveys. It is possible to reduce the non-sampling errors to a greater extant by using better organization and suitably trained personnel at the field of tabulation stages. This should be taken non-sampling errors of the following factors: 1.
Data specification being inadequate and inconsistent.
2.
Errors due to non-response.
3.
Inadequate scrutiny of the basic data.
4.
Inaccurate or inappropriate methods of interviews.
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1.6 Limitations of the Study: There are some limitations of the study1. Limitation of time was one of the most important factors to know all activities of the branch and prepare the report. 2. It was very difficult to collect the information from various personnel for their job constraint. 3. Every organization has their own secrecy that is not revealed to others. While collecting data i.e. interviewing the employees, they did not disclose much information for the Sake of the confidentially of the organization. 4. Another limitation of this report is Bank's policy of not disclosing some data and information for obvious reason, which could be very much useful. 5. Because of the limitation of information, some assumption was made. So there may be some personal mistake in the report.
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Overview of Janata Bank Limited 2.1 Organizational Overview Brief History Janata Bank Limited (JBL), a commercial bank in Bangladesh. Sponsored by the Government, JBL started its operation in 1971 and has since been able to establish one of the largest networks of 893 branches among the first generation banks in the public sector. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Public Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy.
2.2 Vision of JBL To become the effective largest commercial bank in Bangladesh to socio-economic development of the country and to be a leading bank in South Asia.
2.3 Mission of JBL To become the leader in the industry attaining highest level of customer satisfaction with strong corporate culture and good governance. To maximize profit with steady growth ensuring major market share. To engineer enterprise and creativity in business and industry with a commitment to social responsibility. To introduce fully automated systems through integration of ICT. To maintain high moral and ethical standard and participative management. To nurture an enabling environment where the innovativeness and performance is rewarded. To develop and retain a quality workforce through effective HRM system.
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To offer an array of products & services in the search for excellence and create an impressive economic value.
2.4v Branch Network The bank has been operating with a network of 893 branches all over the country as on 31 th December 2013. In the year 2010, there were 861 branches all over the country & then the bank opened 32 new branches. Here shows zone wise branch distribution of JBL:
Office / Zones
Number
Dhaka
261
Chittagong
203
Rajshahi
146
Khulna
111
Barishal
41
Sylhet
59
Rangpur
72 Total=
893
Table 01: Zone wise number of Branches
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2.5 Strategies of JBL
To strive for customer best satisfaction & earn confidence. To manage and operate the bank in the most effective manner. To identify customers’ needs and monitor their perception towards meeting those needs. To review and update policies, procedures and practices to enhance the ability to extend better service to the customer. To train and develop all employees and provide them adequate resource so that the customer needs are reasonably addressed. To promote organizational efficiency by communicating company plan, policies and producers openly to the employees in a time fashion. To cultivate a congenial working environment. To diversify portfolio both the retail and wholesale market.
2.6 Organizational Structure: There are different wings to consist the organizational structure of JBL. There are – Board of Directors Board Committees Executive Committees Policy Committees Management Team Board of Directors The Board of Directors is composed of 13 (Thirteen) headed by a Chairman. The Directors are representatives from both public and private sectors. The name and position of directors as of 31 December 2013 are as under. No.
Name of Directors
Position
1.
Professor Dr. Abul Barkat
Chairman
2.
Dr. Jamaluddin Ahmed, FCA
Director
3.
Mr. Md Emdadul Hoque
Director
4.
Mr. Nagibul Islam Dipu
Director
5.
Dr A M Debnath
Director
6.
Sayed Bazlul Karim, B.P.M.
Director
7.
Prof. Mohammad Moinuddin
Director
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8.
Mr. Md. Abu Naser
Director
9.
Msr. Sangria Ahmed
Director
10.
Prof. Dr. Nitai Chanra Nag
Director
11.
Mr. A. K. M. Kamrul Islam, FCA
Director
12.
Mr. Md. Mahabubur Rahman Hiron
Director
13.
Mr. S.M Aminur Rahman
Managing Director
Table 02: Board of Directors Name of JBL
Policy Committee Al matters relating to the principles, rules and regulation, ethics etc. for operation and management of the bank are recommended by the committee to the board of directors.
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Structure of the Janata Bank: CEO & Managing Director
Deputy Managing Director
General Manager
Deputy General Manager Assistant General Manager
First Assistant General Manager Senior Executive Officer Executive Officer Assistant Executive Officer
Assistant Executive Officer (Teller) Assistant Officer Grade-1 Assistant Officer Grade-2 Stuff Catagorey-1
Stuff Catagorey-2
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Figure 01: Structure of the Janata Bank
2.7 Products & Services The Bank provides a broad range of financial services to its customers and corporate clients. The products and services JBL offers are provided in the Appendix. However, description of some products is given below: JBL has several types of deposits for its customers. LikeSavings Bank (SB) This is an interest bearing and only individuals can open this type of s. Customers can deposit or withdraw money from their SB ten times in a month. A certain amount of interest is given in the Savings with interest where no interest is given in the Non-interest savings . Current Deposit (CD) It is popularly known as Current . Any individual, companies, firm, are eligible to open this type of in its own name. This is non-interest bearing . The holder can deposit or withdraw money from his or her any time he or she wants. Short Term Deposit (STD) This is opened and operated for short term and for specific purpose like salary payment etc. It is also an interest bearing and where rate of interest is generally below the savings rate.
Fixed Deposit Receipt (FDR) Individuals, Firms, Companies, Associations may open this . The deposit is taken for a specific fixed period of time, such as 3 months, 6 months, 1-year etc. Deposit mix of the year 2012 & 2013 was as follows: ©Daffodil International University
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Items
2013 Tk. ( in million)
Savings Bank Deposits Fixed Deposits Current Deposits Short Term Deposit Other Deposit Total Deposit
2012 Tk. ( in million)
93526 320344 14609 49940 116 478535
89456 257079 27910 33928 1394 409767
Table 03: Deposit Mix of JBL
Figure 02: Comparative Deposit Mix of JBL There are also few schemes JBL is offering its customers. Such as JBL DPS Plus JBL Earning Plus JBL Multi Millionaire JBL DPS Plus: In this scheme, customers are required to deposit a certain amount of money which they can withdraw after 5 years including the profit. • Monthly installment starts from Tk. 500 to Tk. 25,000. • Customers can take 90% of the deposit as loan.
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• Applicant should be at least 18 years old. JBL Earning Plus: This is more flexible for the customers than the JBL DPS Plus if they want to withdraw their money after a shorter period. The duration of this scheme would be 3 or 5 years. Customers can withdraw money from their after each 1 or 3 months along with the profit. • Minimum Tk. 50,000 and maximum Tk. 50,00,000 is required to open • Customers can take 90% of the deposit as loan • Applicant should be at least 18 years old • Older Citizens (55 years above) will get .25% interest more.
JBL Multi Millionaire: In this scheme, the duration would be 5 to 15 years with different size of monthly installment. When the will be matured, customers can get 10 Lac to 1 Corer Taka depending on which category they chose. • Monthly installment would be Tk. 5,150 to Tk. 60,000. • Customers can take 90% of the deposit as loan. • Applicant should be at least 18 years old.
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2.8 Business Performance over the last Few Decades A comparative overview of deposits, loans & advances and net profit over the last few years is given below: Date December 31, 2009 December 31, 2010 December 31, 2011 December 31, 2012 December 31, 2013
Deposit ( Tk. in million) 246175
Loans & Advances (Tk. in million) 166359
Net Profit (Tk. in million) 2804
286566
225732
4908
361676
257801
4445
409767
305339
(15280)
478535
285747
9551
Table 04: Overview of Deposits, Loans & Advance, and net profit over last few years
2.9 Capital Structure of JBL The authorized Capital of JBL is Tk. 2000 million during the year 2013. The paid up capital of the Bank has been increased to Tk. 19140 million from Tk. 11000 million. The government of Bangladesh held total no of shares 120 worth TK 12000. Bank & other financial institutions held total 6312800. Remaining share holders held total 7,355,192 shares worth TK 735,519,200. The total eqity of the holders of the bank at the end of the end of the year 2009 stood at TK 3455.1 million and in 2010 stood at TK 2543 million.
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A comparative overview of capital structure over two years is given below-
Particulars Authorized Capital Paid-Up Capital Statutory Reserve Other reserve Retained Earnings
2012 ( Tk. in million)
2011(Tk. in millions)
20000 19140 7919 10990 (933)
20000 11000 5968 10526 (10017)
Table 05: Capital Structure of JBL
Figure 03: Capital Structure of JBL
2.10 Loan and Advances JBL’s loans and advances increased by Tk.million during the year 2012 and stood at Tk. million which was Tk million in 2011 showing a substantial growth of % over the previous year. Concentration of loans and advances was well managed and details of concentration are given at notes to the financial statements. The ratio no performing loan was 1.79% which is much lower than the industry average. The Bank continued its participation in different credit program for financing in new industrial projects, working capital, trade finance, international trade etc. At the end of the year the credit deposit ratio 82.81% which was 82.75% at the closing of 2010.
Sector wise position of Loans and Advances on 31 December 2013 ©Daffodil International University
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Sectors of Loans & Advances Agriculture Industrial Lending (Team) Industrial Lending(WC) Commercial Lending Special Program Housing Lease Financing Bills Discounted & Purchaged Others Total: Loans & Advances
Public
11
11
Private
Total
1142 4910.1 711.1 29106 4832.1 1410 512.4 4533.2 3317.7 50474.6
1142 4910.10 711.1 29106 4832.1 1410 512.4 4533.2 3317.7 50474.6
Table 06: Loans & Advances of JBL
Figure 04: Sectors of Loan & Advance of JBL
2.14 Customer Services:
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The Customer service is the top priority of the Bank. the Banks Policy is to make all employees more proactive to the clients irrespective of their socio-economic background. The employees are self-motivated and committed to do their job.
2.15 Corporate Governance Corporate Governance is the system by which companies are directed and controlled to the best interest of the stakeholders, which describes the nature and extent of ability of the people and institution engaged in the business. Corporate Governance ensures fairness, transparency and integrity of the management. It is the way of life, rather than a mere legal compulsion. It further inspires and strengthens investor’s confidence and commitment to the company. In fact, corporate governance leads to the good governance and good governance is an integral part of the economic development of a country.
2.16 Corporate Social Responsibility Janata Bank Limited, one of the largest banks of the country is highly concerned about the assimilation of social cause in its core process. As a part of their commitment to create real value in a changing world, they are determined to hold their selves able for the social, environmental and economic impacts of our operations, and they are committed to developing policies, business practices and social services which drive change in our industry. They use the power of our brand, the energy and ion of their people and the scale of our business to create meaningful changes in society.
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2.17 Credit Rating Report CRISL has rated the Bank based on December 31, 2011 with ‘AA-`(pronounced as double A minus) in the Long Term and ST-2 for the Short Term. The date of rating was April 09, 2012. Year
Long Term Rating
Short Term Rating
2011
AA-
ST -2
2010
A+
ST -2
Table 07: Credit Rating Report
JBL has been rated as AA- which means Adequate Safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in higher categories. The Short term rating ST-2 indicates high certainty of timely payment. Liquidity factors are strong and ed by good fundamental protection factors. Risk factors are very small.
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2.18 Highlights on the overall Activities of JBL: Particulars Paid-up Capital Total Capital
31 December 2013 (Tk. in millions) 19,140.00
31 December 2012 (Tk. in millions) 11,000.00
34,301.03
11,780.36
908.71
(20,117.67)
Total Assets
5,86,082.98
5,11,129.41
Total Deposits
4,78,535.57
4,09,767.09
Total Loans & Advances
2,85,747.65
3,05,339.57
Total Liabilities
5,48,966.78
4,93,952.75
82.81
82.75
1.79
1.20
12,127.10
14,533.80
Profit after Tax & Provision
9,551.39
(15280.38)
Amount of Classified Loans & Advances during the year
31766.86
53201.69
1,93,269.66
1,08,342.04
22,291.78
34,012.05
7,584.19
(15,287.92)
9.23%
8.76%
Reserve fund
1,967.20
7.58
Net-Interest Margin (NIM)
1,976.84
6,739.96
Return on Investment (ROI) (%)
9.39%
8.01%
Return on Assets (ROA) (%)
1.42%
-3.5%
Net Asset Value per share
193.92
158.88
Income from Investments
13,736.50
7,811.43
Earning per share (Taka)
86.31
(138.91)
Net Operating Income Per share (Taka)
63.36
132.13
191.40
110.00
Capital Surplus/(Deficit)
Credit Deposit Ratio (%) Percentage of Classified loans against Total Loans & Advances
Operating Profit
Investments Provision maintains for Loans & Advance Retained Earnings Cost of Fund (%)
Number of Shares
Table 08: Highlight on the overall Activities of JBL
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Chapter III Foreign Remittance Activities Janata Bank Limited 3.1 Foreign Remittance: This bank is authorized dealer to deal in foreign exchange business. As an authorized dealer, a bank must provide some services to the clients regarding foreign exchange and this department provides these services. The basic function of this department are outward and inward remittance of foreign exchange from one country to another country. In the process of providing this remittance service, it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of exchange, which the banker quotes, one for buying and another for selling. In such transactions the foreign currencies are like any other commodities offered for sales and purchase, the cost (convention value) being paid by the buyer in home currency the legal tender.
3.2 Remittance procedures of foreign currency: There are two types of remittance: 1. Inward remittance. 2. Outward remittance. 1. Inward Foreign Remittance: Inward remittance covers purchase of foreign currency in the form of foreign T.T., D.D, and bills, T.C. etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C.
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2. Outward Foreign Remittance: Outward remittance covers sales of foreign currency through issuing foreign T.T. Drafts, Travelers Check etc. as well as sell of foreign exchange under L/C and against import bills retired.
3.3 Working of this department: 1. Issuance of TC, Cash Dollar /Pound 2. Issuance of FDD, FTT & purchasing, Payment of the same. 3. port endorsement. 4. Encashment certificate. 5. F/C opening & filing.
Modes: The remittance process involves the following four modes Cash Remittance Dollar/ Pound Sell Bank sells Dollar / Pound for using in abroad by the purchaser. The maximum amount of such sell is mentioned in the Bangladesh Bank publication of `Convertibility of Taka for Currency Transactions in Bangladesh'. Purchase Bank can purchase dollar from resident and non - resident Bangladeshi and Foreigner. Most dollars purchased comes from realization of Export Bill of Exchange. Traveler's Cheque (TC) Issue of TC TC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand. Buying of TC If any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC. Telex Transfer Outward TT It remits fund by tested TT via its foreign correspondence bank in which it is maintaining its NOSTRO . Incoming TT It also makes payment according to telegraphic message of its foreign correspondence bank from the corresponding VOSTRO . Foreign Demand Draft Bank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO . Bank also makes payment on DD drawn on this bank by its foreign correspondence bank through the VOSTRO .
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3.4 Formalities for opening foreign currency (FC) : The AD may without prior approval of the Bangladesh Bank open Foreign Currency (FC) in the name of: 1. Bangladesh national residing abroad. 2. Foreign nationals residing abroad/ in Bangladesh and also foreign firms 3. ed abroad and operating in Bangladesh and abstract foreign missions and their expatriate employees. 4. Resident of Bangladesh nationals working with the foreign / international organization operating in Bangladesh provided their salary in paid in foreign currency. Head Office, International Division (HO/ID) Under prior arrangement, the remitting company remits their draft printed at banks international division through the website and delivered the same to he beneficiary’s home address. HO/ID arranges all the draft according to the branch, and then provides TT to the branch through internet. This two types: Cash Payment: In this system customer comes with a pin no. and any photo identify. Officer matches the pin no. with TT reference no. When the no.. match, then officer give a form. Customrs dully fulfill the form and collect money from the cash. Holder: In this method customer must be an holder of the branch. Officer matches the no & name of the match, then officer directly transfer the money in the
Other bank Under prior arrangement, the remitting company remits their draft printed at banks international division through the website and delivered the same the beneficiary’s home address. In the event of beneficiary’s being maintained with other banks the proceeds are placed into payees within the next working day in the metropolitan cities and division HQ and within only 3
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working days at the places of the country by using DD/PO/MT subject to availability of courier services.
3.5 Import From the following chart we can see that, the lowest amount of import by Janata Bank Limited is Tk. 118525 million in 2009. From 2009 it has started to increase & in 2011 the import was in highest position which is Tk. 197285.00 million. Last year in 2013 JBL experienced a growth rate of 18.92%. So, the yearly import position has improved gradually.
(Tk. In million)
Year
Import
Growth Rate
2009
118525.00
2010
183744.00
55.03%
2011
197285.00
7.37%
2012
188284.00
-4.56%
2013
176671.00
-6.17%
-
Table 09: Yearly Import position of JBL
Import growth last 5 years
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Figure 05: Yearly Import growth of JBL
3.6 Export In case of last five years export trends, we can see a handsome growth rate in each year. In 2009 – 2010, the growth rate is about 33.68% while in the year 2013, it reached to its peak at Tk. 153252.00 at a growth rate of -2.09%. It is just five years and such a good growth rate indicates how good this bank is performing especially in foreign exchange.
Year
Export
Growth Rate
2009
88653.00
2010
118515.00
33.68%
2011
153758.00
29.74%
2012
156525.00
1.80%
2013
153252.00
-2.09%
-
Table 10: Yearly Export position of JBL
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Figure 06: Yearly Export growth of JBL
3.7 Foreign Remittances The amount of remittance by Janata Bank Limited is Tk. 56,190.00million in 2009. From 2009 it has started to decrease & in 2011 the remittance was in lowest position which is Tk. 5452.10 million. Last year in 2012 JBL experienced a negative growth rate of -38.99%. So, the yearly remittance position has dropped regularly.
Year
Remittance
Growth Rate
2009
56190.00
2010
52640.00
-6.32%
2011
72285.00
37.32%
2012
100089.00
38.46%
2013
103982.00
3.89%
-
Table 11: Yearly Remittance position of JBL
Remittance of last 5 years
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Figure 07: Yearly Remittance position of JBL
3.8 Profit margin from Foreign Remittance Business in Janata Bank Limited Ltd. The volume of foreign remittance in the year 2013 stood at Tk. 103982.00 million in Janata Bank Limited Ltd. In this foreign remittance JBL earn profit BDT Tk 25194.84 in the year 2013. The volume of foreign remittance in the year 2012 stood at Tk. 100089.00 million in Janata Bank Limited Ltd. In this foreign remittance JBL earn profit BDT Tk 24281.59 in the year 2012. In the following show profit margin table from Foreign Remittance Business in Janata Bank Limited Ltd. (TK in million) Year
Total Remittance in JBL
Earned Profit
2013
103982.00
25194.84
2012
100089.00
24281.59
Table 12: Profit Margin from Foreign Remittance business in JBL
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Figure 08: Profit Margin from Foreign Remittance business in JBL
Foreign Remittances Turnover last six months in 2013: In the following we show graphically monthly foreign remittance total turnover last six months in 2013. (UGC Branch of JBL) Month
Monthly turnover in foreign remittance Tk.
January
1,22,45,213
February
1,21,11,797
March
1,00,87,435
April
1,05,47,347
May
1,14,87,548
June
1,00,00,041
Table 13: Foreign Remittances Turnover last six months in 2013
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Figure 09: Foreign Remittances Turnover last six months in 2013 The volume of foreign remittance in the year 2013 last six months turnover was January stood at 1,22,45,213 BDT, February stood at 1,21,11,797 BDT, March stood at 1,00,87,435 BDT, April stood at 1,05,47,347 BDT, May stood at 1,14,87.548 BDT, June stood at1,00,00,041 BDT in Janata Bank Limited Ltd. In the above discussion we see that in the mont January Janata Bank Limited Ltd earned highest remittance turnover and in the month June JBL earned lowest remittance turnover.
3.9 Foreign Remittances comparison with other banks in 2013: Foreign remittance performance comparison with other five banks is showing below with graph Bank
Foreign Remittance 2013 (Tk. In million)
Janata Bank Limited
42,142.20
AB Bank Limited
18,322.47
NCC Bank Limited
16,323.00
South East bank Limited United Commercial Bank Limited
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Bank Asia Limited
34,334.40
Table 14: Foreign Remittances comparison with other banks in 2013
Figure 10: Foreign Remittances comparison with other banks in 2013
In this graph, we can see Janata Bank Limited is the highest position according to earning remittance with Tk. 42142.20 (Tk. in million) and 2 nd highest position is United Commercial (UCB) Bank with Tk. 34334.40 (Tk. in million). South East Bank is staying in lowest position with Tk. 4508.10 (Tk. in million).
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Findings, Recommendation & Conclusion 4.1 Findings In today's world we consider time as money. So it needs prompt action in making disbursement and collection of payment. In JBL introduction of Speed Cash/Western Union money transfer system of Foreign Remittance may resolve this problem. Introducing of Western Union money transfer system at the earliest to expedite payment of remittance. Because JBL has
Strong istration. Strongly follow the rules and regulation of banking . Cordial and very helpful officials. Extraordinary banking environment. Strong determination of achieve target. Well trained marketing people.
Some of the major problems that JBL is currently experiencing may be summarized as a) Lack of a full fledged core banking solution is resulting in lag in updating of exchange position on event by event basis. It is also impeding the FX fund requirement projection to a great degree. Reconciliation of Nostro with their respective shadows is getting delayed. b) Human error in FX voucher preparation and subsequent posting in respective GL heads at head office end is hampering proper foreign exchange management process and hence Foreign Exchange operation. c) Mistakes in Daily Exchange Position Report from branch end often results in faulty data which translates into faults in Foreign Exchange Operation. d) Competition in the banking sector is immense; sometimes undue facilities are requested by import and export clients. Regardless of whether we decide to entertain such requests or not Foreign Exchange Operation is hampered. e) JBL has no Online Banking System yet for which they cannot provide customer service promptly.
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f) JBL does not maintain database of other banks' branches for which communication with other bank in connection with payment of Foreign Remittance cannot be made smoothly. g) Problem solves section of Foreign Remittance in Janata Bank Limited Ltd. is not so organized like other banks. Shortage of equipment and manpower hamper its problem-solves operation.
4.2 Recommendations
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From the experience of concluding the project a number of recommendations may be given which may be useful or the newly entrance to offering these services of Foreign Exchange (Export and Import) such as: Acquiring Foreign Remittance depends on prompt customer service and instant payment, which requires Online Banking system. I recommend introducing of Online Banking system to attract customer and provide better customer service. Maintaining of other banks' database is highly recommended. For more security customer submitted their necessary papers that is verifies by responsible officers before opening L/C that is very essential for Export or Import goods. Bank provides the facility and gives opportunity to transaction a certain sum of money in credit time. For protecting the robbing it is needed to program a safety alarm system in the required foreign exchange, which is connected to the bank. Problem solves section should have more equipped along with talented personnel. A special customer appointed to the Bank for guiding the s and recording their complaints and reporting to the management. JBL should introduce ATM/Debit/Credit card and Evening banking facility in all of their branches. JBL should exercise marketing promotion practice.
4.3 Conclusions JBL is one of the commercial banks in the banking sector of Bangladesh. It is not easy to develop a HRM System for a bank because they do not have so many departments. So, all the theories of HR are not very easy to implement in the banking sector. But we have tried a lot. In this sector the organization itself is very small compare to other industries. In the case of performance appraisal system the organization should follow the system of other foreign bank in the country. The matter ©Daffodil International University
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of regret that the organization is not up to the mark and the banking system is not really come out from the traditional banking system. It should be changed. We have to find out the fact that what is the employees of bank want from the organization and what bank want from them. If this two is balanced performance will automatically improved. Janata Bank Limited (JBL) is playing a vital role in financing import and exports of the country. Without Bank's co-operation, it is not possible to run any business or production activity in this age. Exports and import need finance in various stages of their activities. Export and import financing are letter of credit (L/C), payment against documents (PAD), loan against imported merchandise (LIM) etc.; all these facilities are provided by JBL. For this purpose Bank's consider the borrower's business standing, integrity, liability with the bank term and conditions of the L/C. There are lots of risks involved in foreign business. So, the Janata Bank Limited (JBL) has to clearly justify the customers from a neutral point and gather the current information about the market. Finally, JBL has concentrated on above foreign remittance findings and recommendations. Various Constraints also found in the system and effort comes out from me to suggest some remedies to overcome that obstacles.
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Bibliography 1. Bank Bulletin. 2. JBL Annual Report 2009, 2010, 2011, 2012, 2013. 3. Guideline of Bangladesh Bank. 4. Janata Bank Limited Banking Manuals. 5. Information from JBL Training Institution at Mirpur. 6. Web site : www.JBL.com. 7. Madura, Jeef (2006) “International Financial Management”, 7th edition. Published by South-Western.
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