Report Part 2 Problem
Report Part 2 Problem
Report Part 2 Problem
Introduction
1:1) INTRODUCTION :
The business world is getting dynamic and competitive. It is hard for an organization to run
and even survive in a fast paced, growing and uncertain world if it cannot keep tracks with
the go of business dynamism. Business plays and links important roles in developing the
economy of a country. So, as a student of Department Business Administration, I need to be
attached with any organization to get a handy and versatile experience about the business
world before starting our career. Internship is the arrangement, which makes a bridge
between our academic knowledge and practical world to have an acquaintance with the real
business world as well as to gear me up to lead the future competitive business. I have
worked in different departments and sections of SBL, Sylhet Corporate Branch, Sylhet. In
this report, I will try to make an analysis on General Banking system of SBL.
1:2) ORIGIN OF THE REPORT
Primary Data
Secondary Data
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General Banking Activities of SBL
Primary data is the data that is obtained through first-hand investigation. It can be either
quantitative focused on numbers or measurements, or qualitative, as when attitudes or
opinions are collected and studied. Information collected from primary data sources can be
interview, survey, experiments, questionnaire, focus group and measurement.
Primary Data Sources: The sources which I have followed to collect primary data are as
follows:-
Observation Method
Interview Method
Observation Method: Observing bank’s financial status, their organizational culture from
different group discussion and the procedures of banking activities.
Interview Method: Face to face interview with the bank officer and staffs and conversation
with customers visited the branch.
1.5.2) Secondary Data:
Secondary data is the data that has already been used. Secondary data can be found in
publications, journal and newspaper.
Secondary Data Sources: To make this report I have followed the following secondary data
sources:-
Annual report of the Sonali Bank Ltd.
Different voucher of the Sonali Bank Ltd.
Official Records of Sonali Bank Ltd
Website of Sonali Bank Ltd.
Different circular sent by Head Office of SBL and Bangladesh Bank.
1:6) SCOPE OF THE STUDY:
This report has been prepared to gain a clear view of the General Banking activities of the
SBL. Using of all my whole experience I have tried to include different aspects of job
performance. The report will be limited to the level of customer satisfaction. It is my great
pleasure this bank has given me the opportunity to observe the banking environment for the
first time indeed. All provided their valuable suggestions which have contributed
significantly to my understanding on how all banking activities are done in SBL. I have a
remarkable contribution from my supervisor who contributed his valuable supervision,
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General Banking Activities of SBL
tireless effort and continuous attention to make this report a complete one. The scope of the
report can be described in terms of two grounds; like:-
Organizational Scope: I have worked in all the desks of general banking division of Sonali
Bank Limited, Sylhet Corporate Branch, Sylhet. I could not get the opportunity to work long
time in Foreign Exchange Department and Loan and Advance Department.
Periodical Scope: Practical orientation in bank has started from the 18 September, 2016 and
the duration of this internship was 90 days.
The report is confined to explain the detailed explanation of other Department; such as- Loan
and Advance Department, Foreign Exchange Department, Card Division, Cash Section.
Credit related to foreign exchange transactions (L/C, LTR, etc.) were excluded. Consumer
Credit (CC) or retail credit facilities and credit provided against Share have also been
excluded from the scope of this report. Details explanation about various types of credit
provided to the staffs of Sonali Bank has also been ignored, as they are special types of credit
provided as a motivating tool for the employees with special terms and conditions.
1:7) LIMITATIONS OF THE STUDY:
Though I have given utmost effort to prepare this paper but there is some limitation of the
study that I cannot ignore. The main limitations are as follows:-
Time Constraint: The duration of internship program was not enough to cover all aspect
of banking. Due to time limitation many of the aspects could not be discussed in the
present report.
Business Secrecy: The main constrain of the study was insufficiency of information
which was required for my report. Some time employees of the bank cannot provide
various information due to security and other corporate obligations.
Information: Since the bank personnel were so much busy with their own work, they
could not provide enough time for making concept clear in a particular area.
Different Circular: For being the largest commercial bank of Bangladesh the functions
and activities of Sonali Bank are too vast, so they change their strategy day by day. As a
result I can’t collect update information and strategy.
Lack of knowledge: Due to Lack of knowledge, experience and expertise in banking field
it becomes hard to understand each and everything during practical program.
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General Banking Activities of SBL
Chapter-02
Overview of Banking Industry
2.1) BANK:
Bank is the life blood of modern economy. The word bank derived from Italian word “Banco,
Banca, Bancus” etc. and German word “Banke”. Simply bank is a bridge between surplus
unit and deficit unit. In the broader sense a bank is a financial intermediary institution which
collects funds from the surplus group of a society as deposit at lower rate of interest and
provide those funds to the deficit group of the society as loan at higher rate of interest.
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General Banking Activities of SBL
it, many modern banks were established in the world like Hindustan bank (1700), Bank of
France (1800), Bank of Japan (1982) act.
At a glance the history of gradual evaluation of banking system:-
Ancient age
Middle age and
Modern age.
Banking of the ancient age: The most remarkable civilizations of ancient age are Chin, Vedic,
Babylon, Roman (in Roman civilization the bankers were known as Arjentari, Kolistiboy
etc.), Persians civilization so on.
Banking of the middle age: In middle age the ancestors of modern bank (Goldsmiths, money
lenders and the merchant) brought about fabulous expansion of banking business. In this age
Bank of Venice established in 1157.
Banking at modern age: The modern age of banking system started with the establishment of
Bank of Barcelona in 1401.
2.3) DEVELOPMENT OF BANKING BUSINESS IN BANGLADESH:
Beginning of Banking in Bangladesh: After independence there was serious crisis in the
banking sector of Bangladesh. As a result, the Government of People’s Republic of
Bangladesh was formally to cover the charge of the administration of the territory new
constitute Bangladesh. In an attempt to rehabilitate the war-devastated banking of
Bangladesh, the government promulgated a law called Bangladesh Bank (temporary) Order,
1971 (Acting President’s order No.2 of 1971). By this Order, the state bank of Pakistan was
declared to be deemed as Bangladesh Bank and offices, branches and assets of said State
Bank was declared to be deemed as offices, branches and assets of Bangladesh Bank. On that
date there existed 14 scheduled banks with about 3042 branches all over the country.
On the 16th December 1971, there existed the following 12 banks in Bangladesh, namely:-
National Bank of Pakistan
Bank Bahawalpur Ltd.
Habib Bank Ltd.
Premier Bank Ltd.
Commerce Bank Ltd.
United Bank Ltd.
Union Bank Ltd.
Muslim Commercial Bank Ltd.
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General Banking Activities of SBL
Standard Bank Ltd.
Australasia Bank Ltd.
Eastern Mercantile Bank Ltd.
Eastern Banking Corporation Ltd.
Nationalization of Banks in Bangladesh: Immediately after the Government of Bangladesh
Consolidated its authority, it decided to adopt socialist pattern of society as its goal. Hence in
order to implement the above mentioned state policy, the Government of Bangladesh decides
to nationalize all the banks of the country accordingly on the 26th March, 1972, Bangladesh
Banks (Nationalization) Order, 1972 (President Order No.26 of 1972) was Promulgated. The
list of those new nationalized banks is below:-
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General Banking Activities of SBL
The name of the central bank of Bangladesh is Bangladesh Bank which was established in
Dhaka as a body of corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972)
with effect from 16 December, 1971.
6 2 9
32 8
State-owned Specialized foreign
Private Islamic
Commercial Banks commercial
Commercial Private
Banks (SCB)
banks (PCB) commercial banks
Or National
banks
Banks (NCB)
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General Banking Activities of SBL
II. Non-scheduled Bank: Non-scheduled banks are those banks which are not included in
the schedule of the central bank. They do not get any privileges of clearing system and re-
discounting of bills. These banks clear their cheques through any scheduled bank.
The list of all scheduled and non-scheduled bank in Bangladesh are mentioned below:
List of all Scheduled Banks:
1. State-owned Commercial Banks (SCB’s or NCB’s)
1. Sonali Bank Ltd.
2. Janata Bank Ltd.
State-owned Commercial 3. Agrani Bank Ltd.
Banks 4. Rupali Bank Ltd.
5. BASIC Bank Ltd.
6. BDBL Ltd.
2. State-owned specialized Banks: Development Bank Ltd.
1. AB Bank Ltd.
2. Bangladesh Commerce Bank Ltd.
3. Bank Asia Ltd.
4. BRAC Bank Ltd.
5. Dhaka Bank Ltd.
6. Dutch-Bangla Bank Ltd.
7. Eastern Bank Ltd.
8. IFIC Bank Ltd.
9. Jamuna Bank Ltd.
10. Meghna Bank Ltd.
11. Mercantile Bank Ltd.
12. Midland Bank Ltd.
Local Private 13. Modhumoti Bank Ltd.
14. Mutual Trust Bank Ltd.
Banks
15. National Bank Ltd.
16. NCC Bank Ltd.
17. NRB Bank Ltd.
18. NRB Commercial Bank Ltd.
19. NRB Global Bank Ltd.
20. One Bank Ltd.
21. Prime Bank Ltd.
22. Pubali Bank Ltd.
23. Simanto Bank Ltd.
24. South Bangla Agriculture and Commerce Bank Ltd.
25. Southeast Bank Ltd
26. Standard Bank Ltd
27. The City Bank Ltd.
28. The Farmers Bank Ltd.
29. The Premier Bank Ltd.
30. Trust Bank Ltd.
31. United Commercial Bank Ltd.
32. Uttara Bank Ltd.
33. The Premier Bank Ltd.
34. Trust Bank Ltd.
35. The Farmers Bank Ltd. 8
General Banking Activities of SBL
4. Local Private Islamic Commercial Bank (PCB’s based on Sariah):
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General Banking Activities of SBL
Chapter-03
Overview of sonali Bank Limited
3.1) BACKGROUND OF SBL:
Soon after independence of the country Sonali Bank emerged as the largest and leading
nationalized commercial bank by proclamation of the Bank’s Nationalized Order 1972
(Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and
Bank of Bhwalpur. As a fully state owned institution, the bank had been discharging its
nation-building responsibilities by undertaking government entrusted different social
economic schemes as well as money market activities of its own volition, covering all
spheres of the economy.
The bank has been converted to a Public Limited Company with 100% ownership of the
government and started functioning as Sonali Bank Limited from November 15, 2007 taking
over all assets, liabilities and business of Sonali Bank. After corporatization, the management
of the bank has been given required autonomy to make the bank competitive and to run its
business effectively.
Sonali Bank Limited is governed by a Board of Directors consisting of 11 members. The
bank is headed by the Managing Director and CEO (Chief Executive Officer), who is a well-
known Banker and a reputed professional. The corporate head quarter of the bank is located
at Motijheel, Dhaka, Bangladesh, the main commercial center of the capital.
Slogan
“Your Trusted Partner in Innovative Banking
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General Banking Activities of SBL
Nealsen Bangladesh has been conducting this survey since 2008 in Bangladesh. Generally
customers’ satisfaction, retail market share and sustainability were the main focus of the
survey. In Bangladesh, Nealsen Bangladesh carries out their survey in 19 different sectors.
According the survey mass people regard Sonali Bank as the bank of all class.
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General Banking Activities of SBL
3.3 AT A GLANCE OF SBL:
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General Banking Activities of SBL
Subsidiaries:
Associates:
3. Representative Office: 3 [One) in Jeddah, KSA; one in Riyadh, KSA and one in Kuwait
4. Correspondence: 639
3.3.2) Business/Services:
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General Banking Activities of SBL
- Special Small Loan
Other Business/Services:
- Government Treasury Bonds
- Locker Service
- ATM Card
- Utility Bills Collection
- Ancillary Services
- Merchant Banking
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General Banking Activities of SBL
3.3.3) Product and Services of Sylhet Corporate Branch:
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General Banking Activities of SBL
Deputy General Manager (DGM)
Officer
PTS
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General Banking Activities of SBL
3:4) PRODUCT AND SERVICES (WITH INTEREST RATE ) OF SYLHET CORPORATE
BRANCH:
1. General Advances
Freedom Fighter 7%
Overdraft 3%
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General Banking Activities of SBL
House Building Loan (Only for staff) 5%
Car Loan 0%
Computer Loan 5%
2. Industrial Credit
3. Rural Credit
5. Loan against-
- FDR
- DPS
- SDPS
- SDS
- EDS
3% more than
- MDS
the provided
- RDS
interest rate to
- MSS
customer
- MES
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General Banking Activities of SBL
- DBS
- NRDS
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General Banking Activities of SBL
Chapter: 4
Task Completed During Internship
In my BBA Program I just theoretically understood all the activities related to banking
industry. However, in my internship, I have practically understood all the activities of
banking systems and procedures. Here, mentioned that, it is not possible for me to explain
each of tasks and details for limitations. But I have tried to explain the main facts and tasks
performed by me.
General banking is the heart of business banking activities. General banking department
performs the core function of bank operates the day-to-day transactions. It is the storage point
of all kinds of purpose in transactions. General banking is the front-side banking service
department. It provides services to customers coming frequently as well as customers coming
for only one time in the bank for enjoying ancillary services. General Banking is an important
department for all banks because it provides day-to-day service to the customers. It is the
department that serves most of the customers of the Bank and the image of the Bank is
established with the services provided by the Front Desk. Almost all the customers are
directly served by this department. Customers open accounts, issue checks books, deposit
their money, receive payments, remit funds, issues bank drafts and pay orders and meet their
demand for cash by honoring checks with this department.
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General Banking Activities of SBL
A typical Bank has generally the following sections -
Account
Opening
General
Cash Clearing
Banking
Section
Remittance
Sylhet Corporate Branch of SBL has all the required sections of general banking which
are as follows:
- Account opening section
- Bills and clearing section
- Cash section
- Remittance section and
- Mails receive and dispatch section.
As an intern of Sylhet Corporate Branch of SBL, I was assigned in the 3 sections of General
Banking Department which are- Account Opening Section, Bills and Clearing Section and
Remittance Section. The activities done by me in these sections are described below:-
4.1.1) Account Opening Section:
One of the vital sections under general Banking is the account opening section. In Sylhet
Corporate Branch of SBL Mr. Md. Waris Ahmed (SPO) is in charge of account opening
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General Banking Activities of SBL
section. Banker customer relationship begins this section. Various tasks are performed in this
section. Such as:-
Opening of different types of account
Issue of checkbook
Transfer and closing of account
Enquiry of account.
Collection of Deposit:
Deposits are life-blood of a commercial bank. Without deposits there are no businesses for
the commercial banks of any nature (NCBs, PCBs or FCBs). Accepting deposits is one of the
two classic functions of commercial banks. Bank deposits can be broadly classified as
follows:-
Bank Deposits
Demand Deposits: Demand deposits can be withdrawn without any prior notice; such as:
current deposits. Sonali Bank Sylhet Corporate Branch accepts demand deposits through
the opening of
- Current Account
- Savings Bank Account
Time Deposits: On the other hand a deposit that is payable at a fixed date or after a period
of notice is called ‘Time Deposit’. This branch accepts time deposit through
- Fixed Deposit Receipt (FDR)
- Short Term Deposit (STD)
Types of Account: Accounts department is the most important functional area of this
branch. The following types of accounts are maintained in this bank:
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General Banking Activities of SBL
1. Fixed deposits A/C
2. Short-term Deposits A/C
3. Savings deposits A/C
4. Current deposits A/C
5. Call deposit A/C
6. Sundry deposit Accounts.
Procedures for opening of accounts:
Before opening of a current or savings account, the officer of account opening section hears
personal details specially where he or she is living and about his or her income source. If the
customers live near of the particular branch, the branch permits him or her to take an account
opening form and fill up it but if he or she does live near the particular branch, the officer
suggests him or her to go to nearest branch of SBL of his or her home and open an account.
With the prescribed application form the customer has to submit the following paper and
application:-
1. Original Copy (for checking) and photo copy of National ID Card or Birth Certificate or
Passport;
2. Two copies of recent passport size photographs;
3. Introduction by an account holder who has an account with the respective branch;
4. Putting three specimen signature in the “Specimen Signature Card” and
5. Mandate (if necessary).
During my internship I have opened at least 4/5 accounts daily in Sylhet Corporate Branch
following above-mentioned formalities. Most of the accounts are Savings and very few
accounts are Current. I have also opened 30-40 School Banking Accounts in my three months
internship at this branch.
Cheque Issue:
After doing the above formalities, the branch provides the customer a pay-in-slip and a
cheque-book. The cheque-book may be off 10-page, 25-page, 50-page or 100-page depending
on the type of account the customer has opened. To complete the issuing of cheque-book, a
customer has to fill-up the ‘Requisition Slip’ for cheque-book. Then a new cheque-book will
be filled-up by the account number of the customer and name of the branch in each page of
the cheque-book. The name and account number of the customer are registered in the
“Cheque-book Issue Register” and a signature is then taken in this register book by the
customer. The requisition slips are maintained and recorded as vouchers. The serial number
of the cheque-book is also entered in the computer for the proper maintenance of records and
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General Banking Activities of SBL
to prevent any attempt of forgery. I issued 15-20 (average) cheque books daily during my
internship program.
Sylhet Corporate Branch of SBL also provides MICR cheque book for its customers by
which they can withdraw money from any branch. To get MICR cheque the customers have
to give an intent in MICR Cheque Issue Register.
Charges: To pay salary and allowances for its employees the branch gives 2 cheque books
(Each of 10 leaves) to its employees without any charge. But Tk 10 is charged for each extra
cheque book of 10 leaves in case of bank staffs. But in case of issuing cheque book for other
savings, cuurent and NSD account holders, TK 1 is charged for each leave. And for MICR
cheque 2.5 taka is charged for each leave.
Application form for current and savings account:
Recently SBL has changed its former application form for opening account. The new
application form includes 12 pages which are filled by customer and finally branch officer.
Followings are the main contents of the new application form for opening Savings or Current
account in Sylhet Corporate Branch, Sonali Bank Limited:
1) Name of the Applicant(s),
2) Father’s/Husband’s Name and Mother’s name,
3) Nationality,
4) Occupation,
5) Date of Birth,
6) Address: Present, Permanent and Occupational,
7) Introducer’s information
8) Information about the Nominee
9) Special instruction for operation of the account (if any)
10) Initial Deposit
11) Specimen signature(s) of the Applicant
12) Voter ID number or Birth Certificate number or Passport number
14) 2 copies recent passport size photos of account holder attested by the introducer
15) Photo of the Nominee(s) attested by the Account Holder.
[If the account holder wants to take ATM service when he or she is opening account, then an
another form named as Debit Card Application Form has to be fulfilled by the customer with
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General Banking Activities of SBL
a extra copy of passport size photograph and this copy of passport size photo does not need to
be attested by introducer]
In case of joint account, the applicant must furnish the following information and papers:-
1. Name of the parties who will open and operate the account and sign the checks;
2. At the event of death either or any of the account holders how the balance will be paid
and to whom the securities (if any) will be delivered. The documentary requirements are
almost the same as individual accounts. Account opening form and the special
instructions must be signed by all the joint account holders to signify their consent;
3. If the client is a partnership company, the company has to submit partnership deed to the
bank;
4. If the applicant is a sole proprietorship business, the client has to submit trade license
collected from the appropriate authority and seal of the institution.
5. If the client is a private or public limited company, the company has to submit
Memorandum of Association (MOA), Article of Association (AOA) and other necessary
documents. Name and specimen signature of the people who are authorized to open and
operate the account and the source of their authority.
Application Form for Fixed Deposit Receipt (FDR):
Fixed deposits are the deposits in which an amount of cash is deposited in bank for a fixed
period specified in advance. Hence, these deposits are time deposits or time liabilities.
Normally, the money on a fixed deposit is not repayable before the expiry of a fixed period.
At the time of opening the deposit account, the banker issues a receipt acknowledging the
receipt of money on deposit account. It is popularly known as FDR (Fixed Deposit Receipt).
In Sylhet Corporate Branch of SBL, the application form for FRD account opening form is
like savings account and current account forms. But the account holder does not need to
fulfill all pages of account opening form like savings account and current account. In Sylhet
Corporate Branch, following necessary headings have to be fulfilled by an account holder for
opening a FDR account:-
(a) Amount in figures
(b) Period
(c) Rate of interest
(d) Beneficiary’s name and address
(e) Special instruction in case of joint account
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General Banking Activities of SBL
(f) Information about nominee(s)
(g) Address of the applicant(s)
(h) Specimen signature(s)
In Sylhet Corporare Branch, after opening a FDR Account, it is usually not recorded in any
FDR register. In case of Fixed Deposit Accounts, the bank needs not hold a cash reserve to
repay money to the customers. The payment will be made after the completion of a certain
period. Hence, Sonali Bank Ltd. offers a high interest rate in Fixed Deposit Account which
have been mentioned in chapter 3.
Short Term Deposit:
During my internship program I have noticed that in Short Term Deposit (STD) Account, the
deposit should be kept for at least seven days to get interest. The interest offered for STD is
less than that of savings deposit. In Sylhet Corporate Branch, Government Departments like
BIWTC, Jiban Bima Corporation, Bangladesh Biman and other private organizations and
individuals keep money in STD accounts. For this type account, frequent withdrawal is
discouraged and requires prior notice. STD is also called SND or Short Notice Account.
In Sylhet Corporate Branch, usually customers give an instruction that their current accounts
will be debited whenever the deposited amount crosses a certain limit and this amount will be
transferred to the STD account. The Branch follows this instruction by giving the following
entries –
Customer’s Current A/C------------------- Dr.
Customer’s STD A/C---------------------- Cr.
Transfer of Account to another Branch: The account holder requests to transfer his
accounts by giving the following instructions:-
Reasons for transfer the account
Address of the branch at which customer wants to transfer the account and
The unutilized cheque book will be returned to the transferring branch before transfer of
account.
After verification, the approval of the manager for transferring the account is obtained and
then the specimen of the forwarding letter of transferee branch will be sent. After the
application is received duly approved from the manager, the branch transfer the account
based on the following entries-
Customer’s Account--------------------------- Dr
Transferee Branch Account------------------ Cr
Service charge (income) ---------------------- Cr
26
General Banking Activities of SBL
In case of transferring a saving account (Monthly), TK 200 is charged in cash and maximum
charge is TK 300 (including Post cost). But to transfer a government account and bank’s own
employees account the bank does not deduct any service charges.
Closing an Account
During the study work I have been taught how to close a bank account before maturity. In
order to close an account before maturity the holder has to place a written application to the
bank. After receiving the application the bank will deduct service charge at an amount
necessary for the respective account as closing fee from the balance and rest of the money is
given to the account holder and the cheque book is to be returned to the branch.
When bank closes an account: Bank closes an account in the following situations:-
If the customer does not properly follow the rules and regulations necessary to operate his
account
Customer’s Account--------------------------- Dr
Account Closing Charge (income) ---------- Cr
27
General Banking Activities of SBL
Issuing Paying
Remitter Branch Branch Payee
Types of Remittance
Sonali Bank Ltd. earns more from this section by TT, DD, MT, PO, Spot cash, Western
Union, Xpress Money, Transfast, EFT, BFTEN etc. Remittance can be of two types; such as:-
a) Inland Remittance
b) Foreign Remittance.
a) Inland Remittance: When money is remitted within a country through proper banking
channel, it is termed as inland remittance. Sonali Bank, Sylhet Corporate Branch deals a
lot of inland remittance at every working day.
Modes of Inland Remittance: From three months internship program I have known that there
are various types of inland remittances. They are:-
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General Banking Activities of SBL
Voucher Issuing Branch gives Purchaser
submitted to branch DD to sends DD to
branch prepares DD purchaser payee
Paying Payee
branch pays presents DD
the amount to branch
Advice of Drawing
Issues DD Pays DD
Flow Chart for DD Payment
Procedures of remitting money through DD: The procedures of remitting money through DD
are stated briefly in below:-
a) At first, the sender of money is advised to fill up a form and deposit the cash. The form is
usually called DD application form or credit voucher,
b) The senders of money fills up the voucher appropriately and place it with cash before the
officer at cash receipt section,
29
General Banking Activities of SBL
c) After receiving the voucher and cash, the officer counts the money and charges a fee as
commission,
d) After that, the voucher is sent to the concerned officer of remittance section,
e) Here the officer prepares a paper instrument called “Demand Draft (DD)” and enters the
amount in the draft issue register,
f) If everything is okayed, the officer signs the DD and voucher and keeps the register and
counter foil of the DD,
g) After that the DD is issued to the sender of money. At this stage he can send the DD to
the receiver branch by post or any other ways,
h) After issuing the DD and handing over it to the sender of money, the DD issuing branch
sends an advice to the receiver branch about DD and
i) Finally, the DD receiver branch makes payment to the bearer of DD. i.e. payee after
completing the necessary formalities.
[There are two kinds of DD paper instruments; one is for government DD and another one is
for others. Government DD is entered in the “Government DD Issue Register” and others are
entered in the “Normal DD Issue Register”. During internship program I have completed
these tasks maintaining named formalities]
2. Pay or Payment Order (PO): Payment Order (PO) is an instrument that contains an order
for payment to the payee only in case of local payment whether on behalf of the bank or its
constituents. Customers can purchase to deposit as security money or earnest money.
Payment Order is in the form of receipts and issued by joint signatures of two officials.
Payment of this instrument is made from the branch it has been issued. The payee’s banker
who should certify that the amount would be credited.
3. Mail Transfer (MT): MT is another widely used instrument of remitting fund from one
branch of a bank to another branch of the same bank. It is not used to remit fund from one
bank to another. MT is nearly same as DD
Procedures of remitting money through MT: The procedures of remitting money through MT
are almost same as the procedures of remitting fund through DD. But there are some
exceptions in this system. The procedures of remitting money through MT are stated in
below-
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General Banking Activities of SBL
a) In case of MT, the sender of money is not provided with the MT paper but a receipt. The
branch sends the MT paper under its own responsibility by mail to the MT receiving
branch.
b) The MT issuing branch has to send a secret message i.e. test to the MT receiving branch.
It is must for any amount of money. Here the amount of money, issuing date and other
particulates are mentioned.
c) To maintain the secrecy of the message sent, the issuing branch codes the message by a
particular number consisting of different digits. After receiving the message, the paying
branch decodes it by using the predetermined techniques. This process is called test. In
Sylhet Corporate Branch of SBL test is done by Senior Principal Officer. If everything is
okayed, the paying branch makes payment to the payee.
4. Telegraphic Transfer (TT): TT is another widely used mode for remittances of funds.
Telegraphic Transfer is quicker than a transfer of amount by DD or MT. The customer
deposits money with the branch to be sent. The customer obtains a cash memo containing TT
serial number.
Procedures of remitting money through TT: The primary formalities that have to be followed
to remit money through TT are same as DD and MT. These are:-
a) In case of TT, no paper instrument is sent to the paying branch. Rather the TT issuing
branch sends a TT advice through telephone, telegraph, Fax or telex to the paying branch.
In sending message, the branch keeps necessary secrecy,
b) Side by side, the TT issuing branch sends an advice to the Head Office of the bank,
c) After receiving the message, the paying branch tests to decode the message. If everything
is obeyed, then the branch makes payment to the payee. After that the branch sends an
advice to the head office to reconcile the accounts of both branches and
d) In case of TT, test is must for every issue and for any amount of money.
5. Any Branch Banking (ABB): Sonali Bank Limited is providing Any Branch Banking
facility through its 1,203 branches. To provide fast service, Sylhet Corporate Branch of
Sonali Bank Limited is providing this facility to its customer. To transfer an amount through
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General Banking Activities of SBL
ABB from Sylhet Corporate Branch, the customers have to use TT, MT, DD form (F-11).
The bank detects a service charge from customers on the basis of transferred amount.
Charges: The commission for DD, TT, and MT up to TK 30,000 is Tk. 30 for per 1000
and Tk. 1 for every thousand above Tk. 30,000. But in case of Payment Order (PO), the
following service charges are charged:-
Amount Charge
Upto TK 1000 20
Upto TK 1,00,000 30
Above TK 1,00,000 100
In present as VAT TK 5 is charged for DD, TT, MT, and PO. There are some branches of
SBL which provides DD, TT and MT services for their employees without any service charges
and some branches provide these services to their staff with service charge.
B) Foreign Remittance: The procedure to transfer money from one country to another country
through bank or other govt. authorized agencies is called foreign remittance. The Sonali
Bank, Sylhet Corporate Branch, Sylhet provides following foreign remittance facility to its
customer directly.
Procedures for Western Union, Spot cash, Transfast, Xpress money: When the clients arrive
to receive cash, performs the following duties:-
a) Customers show pin number from the remitter abroad to the banker for payment. If 8
digits, it will be spot cash, If 16 digits, it will be Xpress money, if 10 digits, it will be
Western Union, If 13 digits, it will be Transfast,
b) The banker logs in that site and confirms payment by matching information and
c) Then the banker gives payment instrument and the customers collect money from cash
counter.
EFT and BFTN: From various countries, amount is directly transferred to the branch of
the clients. Now, share bonus, fund transfer and salary of government and private
organization are given through BFTN.
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General Banking Activities of SBL
In Flow of Foreign Remittance of Sylhet Corporate Branch of SBL:
[4 Months]
17.5
17
16.83 16.92
16.5
16
15.5
15.55
15
14.5 14.68
14
13.5
July August September October
In flow of foreign remittance of Sylhet Corporate Branch (in million taka)
Bills Section: This section is very critical and complex. It carries risk. In Sylhet Corporate
Branch a Senior Principal Officer named Mr. Subroto Muhon Kor is charged with this section
that is well-experienced and skilled enough to deal such complexities.
Customers pay and receives bill from their counter party as a result of transaction. SBL
collects bill on behalf of their customer. Collection mechanisms in SBL are clearing, outward
bill for collection (OBC), inward bills for collection (IBC).
Outward Bills for Collection (OBC): When a particular branch receives bills from its
local parties or banks and sends those to an outstation branch or bank for collection, the
bills are considered outward bills for that particular branch.
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General Banking Activities of SBL
Inward Bills for Collection (IBC): When the bills are received by a branch either from a
outstation branch, bank or parties direct for collection and remittance of the proceeds, the
bills are considered inward bills for the particular branch.
Clearing Section: Clearing is a system by which a bank can collect customers fund from one
bank to another through clearing house. Clearing section plays a vital role in general banking.
This section receives cheques, DD, PO etc from depositors attached with a deposit slip. Then
instruments are posted the Nikash Computer. After posting this instruments are segmented
bank wise. The Clearing House sits twice daily on all working days. The first clearing is held
in the morning and the second clearing in the afternoon. Time for both the clearings are
predetermined. Change in timing, if any, is advised from time to time by Bangladesh Bank
and Sonali Bank. In the first clearing representative of each member banks delivers
instruments drawn on rest of the banks and receives instruments of other banks drawn on
itself. Cheques or instruments returned unpaid are delivered to the respective representative
along with returning memo in the second clearing.
Credit section is the heard of the banking activities, because the main bank profit comes
from this section. For a short duration of internship I was not set up for long time in this
department and ultimately did not get opportunity to gain more idea about this department.
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General Banking Activities of SBL
4.3) FOREIGN E XCHANGE DEPARTMENT:
Foreign exchange means foreign currency. If we consider Foreign Exchange as a subject then
it means all kinds of transaction related to Foreign currency as well as currency instruments
such as DD, TT, TC, Payment Order & Foreign Trade. In other wards Foreign Exchange
deals with foreign Financial Transactions.
Duties of the Foreign Exchange
For a very short span of time, I did not get such opportunity to work at Foreign Exchange
Department; ultimately to study on the activities of the department. From my little experience
I have just known that there are 3 kinds of Foreign Exchange Transactions in Sylhet
Corporate Branch. They are:-
- Import
- Export
- Foreign Currency Account
I have learnt following things from Sonali Bank Limited, Sylhet Corporate Branch, Sylhet:-
To learn how to open an account (current account, saving account and short-term deposit
account);
How to issue Cheque book;
How to give intent for MICR cheque book;
How to issue DD;
How to issue PO;
How to issue MT;
How to issue TT;
How to entry passport fee;
What types of requirement are necessary for loan;
How pay cash account holder and
How to make a financial statement of passport Fees.
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General Banking Activities of SBL
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General Banking Activities of SBL
Chapter: 5
Application of Knowledge Gained During BBA Program
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General Banking Activities of SBL
5.5) ORGANIZATIONAL BEHAVIOR (OB): Organizational Behavior is concerned with the
behavioral issues and I read it at 7th semester of 4 (Four) years BBA Program. It is a course
which comprises of all actions, norms, behavior which an individual needs to follow within
organization. This course made me aware about conduct in the corporate field. During
internship I needed the following things learned from this course:-
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General Banking Activities of SBL
To know and explain the purpose of the study and
To identify the problems.
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General Banking Activities of SBL
Chapter 06
Management Performance
6. 1 Introduction
A bank is a financial institution which accepts deposits, pays interest on pre-defined rates,
clears checks, makes loans, and often acts as an intermediary in financial transactions. It also
provides other financial services to its customers.
Bank management governs various concerns associated with bank in order to maximize
profits. The concerns broadly include liquidity management, asset management, liability
management and capital management.
Management means the administration and the governing body that is concerning the whole
organization. All the decision and strategies are been proposed and evaluated the
management of the organization. At National bank, the management is pretty strong and there
is lot centralization in the whole network of the bank. The management at National bank has
been divided into 3 major parts i.e. Board of Directors, the Top management, and the group
of middle managers, supervisors and the employees.
The upper most part of the management is the Board of Directors or the Executives. The Board of
Directors is responsible for the first phase of the management process, i.e. planning. So, all the
decisions and the strategies are being proposed and implemented under the instructions and the
supervision of the board of directors or the executives. Also the policies and the overall objectives of
the Bank are being proposed at this level of the organization.
The top management involves the branch managers and the chief managers of the bank including the
operations managers as well. The major responsibilities include the strategy formulating for the bank
and supervising the whole staff at the branch. They define and interpret the objectives and vision and
then formulate policies for their completion.
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General Banking Activities of SBL
Departmental heads constitute this level of management at National Bank Ltd. They are directly
responsible for planning and controlling the activities of officers. Finally, the employee’s activities are
monitored and controlled according to the desired objectives.
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General Banking Activities of SBL
Centralized banks were setup to manage other banks
Book keeping transformed from papers to digital with the advent of computers
ATM booths were established for easier withdrawal of money
Internet banking system emerged with the introduction of Internet
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General Banking Activities of SBL
in order to choose the right person for providing the loan. He considers two factors to
determine whether the loan is good or bad loan.
It can also use money market borrowing because it is less costly and flexible compared to
deposit. A bank can also rely on various off-balance sheet items for funding to its needs.
Fund management also depends on the effective use of the collected funds. Improper use
makes the collected funds burden for the bank. In this part, various ratios are analyzed both in
the context of interest cost of the funds and their effective utilization.
6.9 Principles of Risk Management of SBL:
The primary objective of risk management is the protection of a bank’s financial strength.
Risk management is based on the following principles:
Protecting the bank’s financial strength: SBL controls risks in order to limit the
impact of potential adverse events, both on its capital and on its financial results. The
risk appetite must be proportional to the available capital.
Protecting the SBL’s reputation: reputation is essential for the proper performance of
a banker’s profession and needs to be diligently preserved.
Risk transparency: for a good insight into SBL’s positions, it is vital to identify all
risks. Risks must always be considered as accurately as possible in order to be able to
make sound commercial decision
Management responsibility: SBL’s business entities are individually responsible for
their results as well as for their risks associated with their operations. A balance must
be found between risk and return, while of course duly observing the relevant risk
limits.
Independent risk control: this is the structured process of ensure integrity, the risk
control departments operate independently of the commercial activities. In the normal
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General Banking Activities of SBL
course of business SBL is exposed to various risks, in relation to the asset and
liability portfolio of the bank.
6.10 Training and Development
Training and development consists of three materials, they are:
Orientation
Training
Development
Chapter: 7
Recommendation and Conclusion
71) RECOMMENDATION :
To survive in the strong competitive business earth and to cope with change, Sonali Bank
Limited needs to bring change in their operations. The bank is actually service organization
and the main objective of the world famous and successful organization is to make profit
through addressing the clients time to time with new pieces of services instruments.
However, from my three months working experience in Sylhet Corporate Branch of Sonali
Bank Limited at different department leads to recommendation on the following issues:-
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General Banking Activities of SBL
i. Firstly, SBL should increase skilled manpower to do its financial activities more
efficiently and effectively. So that many of the employees do not have to do extra
work;
ii. The branch should be developed by increasing technology and the staff of the bank
should be qualified about technology by proper training;
iii. The entire general banking system of general banking division is not computerized for
which it takes much more time to open an account and to issue cheque book. If the
whole system is computerized, then the bank can satisfy its customers by providing
fast service;
iv. In this branch the sections of General Banking Department are not running by
manpower with high quality banking knowledge. Due to lack of skilled employees in
this department the branch is not getting a touch of rich customers;
v. The employees of different department cannot cope with the changes and maintain all
rules and regulation in accordance with new new circular provided by Bangladesh
bank and Head Office of SBL. Consequently this branch is getting objections more
than once time by internal auditor;
vi. There is lack of co-ordination among departments which hampers to deliver faster
service to customers. So to achieve organizational goal the branch needs synthesis
among personnel of all departments;
vii. Senior management and other personnel throughout the bank should work in a straight
forward manner as per regulatory norms of bank;
viii. The bank should decrease the loan sanction time;
ix. The bank's rules and condition are very strong in case of providing and collecting loan,
so the customer pays their loan for facing lots of problem;
x. The bank should be increased the number of ATM booth and the amount of Q cash
withdrawn from the booths and
xi. To get customer attraction, the branch decoration and the customer hospitality service
should be developed soon.
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General Banking Activities of SBL
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General Banking Activities of SBL
7.2) CONCLUSION:
Sonali Bank Limited is the largest commercial bank as well as the largest employer in both
the public and private sector in Bangladesh. Though the bank is playing an important role in
the socioeconomic development through the development of industrial sector and providing
all the conventional banking service as well as some specialized financing activities to the
economy period, it has also to do a lot of things for the country. It has to take initiative so that
it can fulfill the desire of the government and people and sustain valuable customers.
Consequently, it also needs to enhance more public services and to build up working teams. It
must be run in organized way and discipline must be ensured in all sphere of its performance.
Efficient export team, import team and remittance team must be formed and performed duties
properly. More training, computerization, data collection, market analysis and swiftness in
servicing are essentially required.
So in conclusion it can be said that to reach the pick of success by eliminating negatives the
bank can use the mentioned recommended suggestions. Because Sonali Bank Limited is near
to the heart of the people acting old heritage with new generation ensuring digital
Bangladesh. It has great impact on the banking business and other sectors of the economy.
For this government help is essential that government will broaden its hand for implementing
the recommendations for the welfare of the people of Bangladesh.
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General Banking Activities of SBL
REFERENCE
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General Banking Activities of SBL