Saturday, June 4, 2016

Internship Report on General Banking Activities of National Bank Limited

                                        

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INTERNSHIP REPORT ON
General Banking Activities of National Bank Limited—Bhaluka Branch


Supervised By:



Bijoy Chandra Das
Lecturer, Dept. of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted By:



Md. Golam Mostafa
Session: 2009-2010
ID: 10132621
Dept. of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University






Date of Submission: 






Letter of Transmittal

16 February 2016
Bijoy Chandra Das
Lecturer, Dept. Finance and Banking,
Jatiya Kabi Kazi Nazrul Islam University


Subject: Submission of ‘Internship Report on General Banking Activities of National Bank
   Limited—Bhaluka Branch.’

Respected Sir,
It is my pleasure to submit my internship report on ‘General Banking Activities of National Bank Limited—Bhaluka Branch’.  This report attempts to describe my observations and learning during the study of this course.
I made sincere efforts to study the related materials, documents, and operational system of National Bank Limited and examine relevant records for preparation of the internship report.
I have tried my best to make this internship report comprehensive and informative as much as possible within the time allowed for me. Due to various limitations there may be some mistakes for which I beg your apology.
Finally, I shall be glad to answer any kind of query relating to this internship report, if necessary.

Sincerely,
Md. Golam Mostafa
ID: 10132621
Session: 2009—2010
Dept. Finance and Banking,
Jatiya Kabi Kazi Nazrul Islam University.


Acknowledgements

The submission of this report- “General Banking Activities of National Bank Limited Bhaluka Branch” is a great opportunity for me. The success of this assignment depends on the contributions of number of people especially who have shared their thoughtful guidance’s and suggestions to improve this report.
This assignment has created a great deal of interest in me. I must thank a few people who help and encouraged us to grow our interest.
First of all I would like to thank our honorable course instructor Bijoy Chandra Das, Department of Finance & Banking, Jatiya Kabi Kazi Nazrul Islam University for his proper guidance and care. Without his guidance and suggestions I couldn’t have completed this report properly. He has instructed me how to prepare a report correctly.
I obviously would like to give a special thanks to the Almighty Allah for giving me such patience and power for completing this report smoothly.
Lastly I can say that, I have enjoyed in preparing this report and presented it for kind judgment





Executive Summary

The internship is designed to bridge the gulf between the theoretical knowledge and real life experience. It is designed to have a practical experience while passing through the theoretical understanding. The report is the result of three months internship program with National Bank Ltd Bhaluka Branch. Today, necessity of a Bank as a financial institution is undeniable. These institutions play a vital role in the field of financial stability of a country. Banking sector is one of the stable financial institutions of a country’s economy.

In Chapter One I have discussed about the Introduction of my report. In Chapter Two I have discussed thoroughly about the National Bank Limited by which we will know history, important vision and mission and objective of NBL. In Chapter Three, I have discussed the general banking activities of NBL. In Chapter Four, I have discussed about my job responsibilities at NBL Bhaluka Branch. In Five, Constraints and Challenges are discussed. In Chapter Six, I have discussed about what I have learnt during the internship at NBL Bhaluka Branch. In Chapter Seven, I have made a Conclusion. Then in Chapter Eight, I have given some recommendations to the Bank. And, in Chapter Nine, References are listed.











Table of content

Chapter No.
Title
Page No.
Chapter—1
Introduction
3

1.1 Objectives of the study
3

1.2 Scope of the study
4

1.3 Methodology of the study
4

1.3.1 Data collection procedure
4

1.3.2 Data processing & Analysis
5

1.4 Limitation of the study
5



Chapter—2
An Overview of NBL


2.1 Background of National Bank Limited
6

2.1.1 Mission
8

2.1.2 Vision
8

2.1.3 Strategic Priority
8

2.1.4 Commitment Of National Bank Limited
9

2.1.5 Core Value
9

2.1.6 Business Ideology
9

2.1.7 Organizational Strategy
9

2.1.8 Functions of National bank Ltd
10

2.2 Capital Structure
10

2.3 National Bank Foundation
11

2.4 Training and Training Institute
12

2.5 Organizational Structure and Development
12

2.6 Organizational Structure of NBL
13

2.7 Management Level
14



Chapter—3
General Banking Activities of NBL


3.1 Work Related
15

3.1.1 Account Opening Section
16

3.1.1.1 New Account Opening
16

3.1.1.2 Account Closing
21

3.1.1.3 Account Transfer
22

3.1.1.4 Dormant Account Activation
22

3.1.1.5 Cheque book issue
23
Chapter No.
Title
Page No.

3.1.1.6 Bank Account Statements & Certificates
23

3.1.2 Remittance Section
24

3.2 Interest Rates of Different Accounts
26



Chapter—4
Job Responsibilities at NBL
28

4.1 Providing Information as Front Desk Officer
28

4.2 Processing of Opening of Current & Saving Account
29

4.3 Required Document for Personal Account
29

4.4 Required Document for Non-Personal Account
30

4.5 Issuing Cheque Book
33



Chapter—5
Constraints & Challenges


5.1 Identified/Observation in the Organization
34

5.2 Academic Preparation
34



Chapter—6
Lesson Learned from the Program


6.1 Lesson Learned from Experience Point of View
35

6.2 Lesson Learned from Employee Point of View
35

6.3 Lesson Learned from Working Environment Point of View
35

6.4 Lesson Learned Regarding Conduct as a Service Provider
36

6.5 Lesson Learned from Personal Problems
36



Chapter—7
Conclusion
37



Chapter—8
Recommendations
38



Chapter—9
References
39





Chapter—1: Introduction                                  

Bank plays a crucial role in the development process of a country as it helps to accelerate the pace of development by securing continuous supply of financial resources to people engaged in numerous economic activities. The tremendous growth that the world economy has experienced is contributed by these financial institutions. The role of banking is comparable to what an artery system does in the human body. Now-a day’s banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming wider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has become essential for every person to have some idea on the bank and banking procedure. Internship program which can also be called work attachment program is essential for completing BBA program because it helps one student to acquaint with the real life situation. As bank is one of the most important financial intermediaries; so I have selected National Bank Limited, Bhaluka Branch, which is one of the most leading banks in the banking area of Bangladesh.

After the completion of four-year and eight-semester academic BBA program I, Md. Golam Mostafa, student of Jatiya Kabi Kazi Nazrul Islam University, was placed in National  Bank Limited—Bhaluka Branch for the Internship Program. As a requirement for the completion of the program I need to submit a report titled “General Banking Activities of National Bank Limited—Bhaluka Branch”



1.1 Objectives of the study
The general objective of the study is to analyze the general banking activities of National Bank Limited at Bhaluka Branch. The other objectives are—
·         To know the general banking activities of National Bank Limited.
·         To recognize the various product and services of National Bank Limited.
·         To gather the practical experience base on the theoretical knowledge.
·         To be familiar with the corporate environment and culture.
·         To serve the function of overall banker-customer relationship.
·         To evaluate the function of general banking system.
·         To observe the function of commercial banking operations.
·         To analyze the strength of National Bank Limited’s general banking.
·         To understand the activities of a front desk officer.
·         To identify challenges regarding as a front desk officer
·         To suggest recommendations on the basis of findings.
·         To learn and acquainted to fulfill the academic purpose



1.2 Scope of the study
The main focus of the study is to examine General Banking activities of National Bank Limited. In this report it has been tried to cover overview of National Bank Limited’s objectives, functions, management, business policy and other associated things related with the general banking activity. Moreover some possible recommendations have been given to widen the performance of National Bank Limited.



1.3 Methodology of the study
The study is performed based on the information extracted from different sources collected by using a specific methodology. To fulfill the objectives of this report total methodology has divided into two major parts:

1.3.1 Data Collection Procedure
In order to make the report more meaningful and presentable, two sources of data and information have been used widely.

The Primary Sources are as follows—
·         I have discussed with officials about the general banking activities of NBL.
·         Sharing practical knowledge of officials.
·         In-depth study of selected cases.

The Secondary Sources are as follows—
·         Annual report of National Bank Limited.
·         Various web sites.
·         Periodicals Published by Bangladesh Bank.
·         Study related books and journals.

1.3.2 Data Processing & Analysis
Collected information have then processed & compiled with the aid of MS Word, Excel & other related computer software. Necessary tables have been prepared on the basis of collected data and various statistical techniques have been applied to analyses on the basis of classified information. Detail explanation and analysis have also been incorporated in the report.


1.4 Limitations of the study
To prepare a report on the topic like this in a short duration is not easy task. From the beginning to end, the study has been conducted with the intention of making it as a complete and truthful one. In preparing this report some problems and limitations have encountered which are as follows—

·         As the data, in most cases, are not in organized way, the bank failed to provide all information.
·         Lack of opportunity to access to internal data.
·         Much confidential information was not disclosed by respective personnel of the department.
·         Due to time limitation, many of the aspects could not be discussed in the present report.
·         Since the bank personnel were very busy, they could not pay enough time.
·         I had to base on secondary data for preparing this report.
·         Legal action related information was not available.

Chapter—2: An Overview of NBL                      

2.1 Background of National Bank Limited
National bank Ltd is the first and major private sector commercial bank in Bangladesh fully owned by the Bangladeshi Entrepreneurs. The Bank started its operation from 23rd March 1983. As a result of the collective effects of the some eminent bankers, of failure in playing due to role in mobilizing small savings of the teeming millions and providing improved clients services to them in our country, the Government gave right decision to allow establishing banks in private sector. National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. It is determined to bring bank the long forgotten taste of banking services and flavors. It wants to serve each one promptly and with a sense of dedication and dignity.
NBL prudently and boldly faced the challenges of various adverse situations prevailing in the post-independence Bangladesh and has now established itself as one of the most successful bank of the country. People in all regions can easily avail of the services of NBL through its 191 branches spread all over the country. Besides, the bank has been smoothly conducting its overseas activities with utmost efficiency through its 358 correspondents in 67 countries of the world. NBL has drawing with 18 overseas exchange houses including the gulf overseas exchange. In order to provide modern banking services to satisfy the demand of the country and the people, all branches of the bank have been brought under computer network. It is able to reach with lighting speed the hard-earned foreign exchanges of non-resident Bangladeshis to their near and dear ones at home through the world renewed Western union. The bank maintains round the clock communication with the external world using the latest information technology services of SWIFT and REUTERS. In order to give improved and risk free banking services to the valuable clients, all arrangements for launching line banking are its final stage.
Since the very beginning the bank extended much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange companies, located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard earned money to the country with confidence safety and speed.
NBL has been able to create a special image at home and abroad by introducing different banking products in accordance with the expectations requirements of people of the country. NBL was the pioneer bank to allow back-to-back LC facility without any margin to the entrepreneurs of garment industry during the Eighties, thereby helping the industry thrive to its present position. This has not only contributed to enrich of the country’s foreign exchange reserves, but also opened employment opportunities for a large numbers of labor force of the country. As a pioneer in this sector, NBL’s name will remain in golden letters.
NBL has been the pioneer in promoting readymade garment industries and still is the Single largest financier in this sector. In the early 80’s when garment industry in Bangladesh was experiencing a process of trial, the bank foresights the bright prospect of this sector and extend finance to the deserving and promising entrepreneurs. It provided them with financial support including market information and advice and today the garment sector constitutes about 66% of the total export of the country.
NBL is the first bank to introduce international Master Card in Bangladesh, which has facilitated the users to get benefit to different facilities in home and abroad. NBL is the first among private sector banks, which has set an uncommon precedence of extending fully, supervised collateral agriculture credit in the brained area of Rajshahi district to help small farmers to grow.
The wise directions and guidance of a prudent and versatile Board of directors and concerted efforts of a team of well-qualified and professionally heightened executives and officials have brought an extraordinary distinctiveness for the bank. Above two thousand dedicated executives, offers and staffs’ working day and night to serve its customers satisfactorily. Through strong commitment base, the bank has introduced new products like Credit card. E-cash. The popularity of the bank has gained momentum with quick money transfer arrangement anywhere in world in association with Western Union’s U.S.A
NBL engaged in all types of commercial Banking services within the stipulations laid down by Bank Companies Act 1991 and directives as received from Bangladesh Bank from time to time. The Bank within the stipulations laid down by Bank Companies Act-1991 and directives as received from Bangladesh Bank from time to time provides all types of Commercial Banking Services. Mainly National Bank Limited collects deposit from the people at lower rate and invests the same to the people again at higher rate. And difference between lower rate of deposit and higher rate of investment is the earnings of the Bank. National Bank Limited mainly invests in industrial sector like short term, middle term as well as long term for import of capital machineries, establish new industry and working capital assistances with this Bank play’s a significant role in Bangladesh economy.



2.1.1 Mission
Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service as well as to our commitment to serve the society through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hearts of the people, as a caring companion in uplifting the national economic standard through continuous upgradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.



2.1.2 Vision 
Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.



2.1.3 Strategic Priority
To have sustained growth, broaden and improve range of products and services in all areas of banking activities with the aim to add increased value to shareholders’ investment and offer highest possible benefits to our customers.


2.1.4 Commitments of National Bank Limited

  • Ours is a customer focused modern banking sound and steady growth in both mobilizing deposit and making quality Investment to keep our position as a leading bank in Bangladesh.

  • To deliver financial services with the touch of our heart to retail, small and medium scale enterprises, as well as corporate clients through our branches across the country.


  • Our business initiatives are designed to match the changing trade & industrial needs of the clients.


2.1.5 Core Values
The banking system of NBL has different core values on different stakeholders including for the customers, employees, shareholders and communities. Customers desire a most caring bank which will provide them the most courteous and efficient service in every area of their business. The employees always want a Bank that will promote well being in every aspect of their lives. The main goal of the shareholders is to yield fair return on their investment through generating stable profit. The general view of our communities is that they show the propensity to assume the role of banking system to be social responsible and close adherence to national policies.

2.1.6 Business Ideology
Alongside providing the best services to the clienteles, patronizing and taking part in social development activities as well as making due contribution to growth of the national economy.


2.1.7 Organizational Strategy
As the financial services industry is a very competitive industry, the main strategy of NBL is the organic growth – to build branches and strengthen their distribution network. They will continue to invest and expand in Bangladesh as fast as local regulations allow.
The principle strategies are –
People - Attract, retain and reward top performers.
Profitable Growth - Growing sales and increase the revenues.
Execution - Performing with skill and speed.
Credit Quality - Maintaining credit quality and understand the role in managing losses.
Customer Centered - Always providing exceptional customer service.
Ownership – The performance and results should be owned.
Efficiency - Lowering the costs and wise use of resources.


2.1.8 Functions of National bank Ltd
Some general function of National Bank are given below-
·         To maintain all types of deposit Accounts.
·         To make investment.
·         To conduct of reign exchange business.
·         To conduct other Banking services.
·         To conduct social welfare activities.
·         To work for continues business innovation and improvements.
·         To build up strong-based capita1ization of the country.
·         To ensure the best uses of its creativity, well disciplined, well manages and perfect       growth.




2.2 Capital Structure
Table-1: The Capital Structure of NBL
Particulars
Amount (BDT)
Core Capital:

Paid up capital
804,741,524
Particulars
Amount (BDT)
Statutory reserve
806,240,084
General reserve
482,723,327
Retained earnings as per profit and
409,471,121
loss account

Supplementary Capital:

1% general provision
307,425,523
Exchange Equalization account
41,371,514
Other reserve
385,176,688
Total
3,237,879,790






2.3 National Bank Foundation
Keeping the view the great objective of contributing to expansion of education and welfare of the society, the National Bank Foundation was set up in 1989. With financial assistance of the Foundation, The National Bank Public School and College has been established in Moghbazar Dhaka. There are a total of 820 students studying in the school section from class 1st to 10th, while there are 120 students at the college section. In 2006, a total of 70 students appeared at the SSC Examination, of which 87% came out successful. In the college section, a total of 90 students appeared at the HSC Examination, of which 81% came out successful.





2.4 Training and Training Institute
Not number, but diversified work efficiency of human resource is the key to sustained progress of an institution. Thus, not merely recruitment of workforce but a regular program for imparting time benefiting training to them is all the more important. With this realization, The National Bank Training Institution (NBTI) was established at Shamoli on 24 October 1989, which is fully residential. Beside faculty members of the Institute, renewed professionals like banker, economists, teachers and researches are invited to deliver lectures in training programs. NBTI has a rich library for use by the trainees. NBL has a program to open a Research and Publication Division soon. During the years under review 225 employees attained in training programs arranged by the training institute of the bank. In every batch, 25 trainees can attain in training program with residential facilities.



2.5 Organizational Structure and Department
Organizational setup of the National bank Limited is consisting of three organizational domains. Firstly the central top management, which contains Board of Directors, Managing Director, Additional Managing Director and Deputy Managing director. The major responsibilities of this group are to take central decision and transmit it to the second step. Secondly the executive level management, which contains Executive Vice Presidents, Senior Vice Presidents, Vice Presidents and Assistant Vice Presidents. The major responsibilities of this part are to supervise and control division/ department. Thirdly, the branch operation management, which contains branch manager and other mid/ lower level management. The major responsibilities of this part are to the 100 branches of this bank and report to the Head Office from time to time.






2.6 Organizational Structure of NBL

Chairperson (Owner)
Directors (Owners)
Managing Director (MD)
Additional Managing Director (AMD)
Deputy Managing Director (DMD)
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)
Senior Principal Officer (SPO)
Principal Officer (PO)
Officer
Assistant officer
Junior Officer
Probationary Officer


2.7 Management Level


Top Management
Chairman
Board of Directors
Executive Committee
Managing Director



Additional Managing Director
Deputy Managing Director
Executive Level Management
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President




Mid-Level
Management


First Assistant Vice President
Senior Principal Officer
Principal Officer



Junior Level
Management

Senior Executive Officer
Management Trainee Officer
Executive Officer
Assistant Officer




Chapter—3: General Banking Activities of NBL

3.1 Work Related
General banking division usually performs a lot of important banking activities. General banking division is the division, which is mostly exposed to the maximum number of bank customers. It is the introductory department of the bank to its customers. All business concerns earn a profit through selling either product or a service.  A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. NBL has all the required sections of general banking and this section are run by manpower with high quality banking knowledge.



General banking section has three parts.

General banking section
Account Opening Section

Remittance Section

Financial controlling section

 








But I was assigned in the Account Opening Section and Local Remittance Section
 Of three general banking sections short overview of these two sections is given below-



3.1.1 Account Opening Section
A banker-customer relationship starts through opening an account. So, the account-opening section does the crucial activities for banks as well as customers. Besides opening accounts for customers, this section deals with all the activities related to the account as well as some of the customer services.

·         New account opening
·         Closing accounts
·         Cheque book issue
·         Account Transfer
·         Account enquiry
·         Issue notice to dormant account holder
·         Activation of dormant account
·         Transaction statement
·         Bank solvency certificates and other certificates
·         Other services.


3.1.1.1 New Account Opening
Banker-customer relationship is a contractual one and this starts through opening of an account. To open an account, customer has to apply through a form provided by the bank named “Account Opening Form (AOF).” Bank requires to take as much as information about its customer during opening an account. The account opening form is a composite one and consists of followings:
·         Personal Information Form
·         Account Opening Form (Individual/Corporate)
·         Expected Transaction Profile (ETP) Form
·         KYC Form
·         Terms and Conditions
·         Specimen Signature (SS) Card.
After receiving the dully fill up forms and necessary documents, bank may open that account. The minimum balance for opening an account must be received in cash. With the permission of Manager or Head of Operation, bank opens account. After opening an account, bank will not issue cheque book immediately rather bank issue a “Thanks letter” to customer’s address by mail for verification. With the thanks letter, bank sends an “Acknowledgement.” When customer comes to bank with acknowledgement, a cheque book requisition form is provided to him. Customers receive cheque book seven days after requisition.


Ø  Types of accounts
Basically the following types of accounts are opened in NBL—
·        Savings Deposit
·        Current Deposit
·        Term Deposit
·        Foreign Currency Deposit
·        Monthly Savings Scheme
·        Monthly Income Scheme
·        Double Benefit Scheme
·        Millionaire Income Scheme


Savings Account
In savings deposit account, profit is payable to the customer. The profit for savings account is 4 percent. Customer can withdraw twice in a week and maximum limit per transaction is BDT 5 Lac. The minimum initial deposit required for opening an account is BDT 1000 for rural area and BDT 2000 for urban area.

Current Account
No profit is payable in current accounts. Current account has advantages over savings account. Advantages are - no such withdrawal limit and overdraft facility. The minimum initial deposit required for opening this type of account is BDT 2000 for rural area and BDT 5000 for urban area.


Fixed Deposit
Any amount can be deposited. Premature encashment facility is available. Overdraft facility available against term receipt.  National Bank Limited offers fixed term savings that will scale up your savings amount with the time.


National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. Bangladesh nationals residing abroad or foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or foreign missions and their expatriate employees.


Monthly Savings Scheme
“See your small savings grow with NBL.”
This scheme is specially designed for the benefit of the limited income group members. This helps to accrue small monthly savings into a significant sum at the end of the term. So, after the expiry of the term period the depositor will have a sizeable amount to relish on.

Benefits (condition apply)
·         Monthly installments of deposit will be Tk.500/-, Tk.1,000/-, Tk.2,000/-, Tk.3,000, Tk.4000/-, Tk.5,000/-, Tk.10,0000/-, Tk.20,0000/-, Tk.30,0000/-, Tk.50,0000/-
·         Account may be opened for any installment and term, which is not changeable.
·         A person is allowed to open more than one account for different installment in a Branch/ Bank.
Detail Chart is given below:


Monthly Income Scheme
Under this scheme one will deposit a minimum of Tk.1, 00,000/- or its multiple up to Tk.10, 000,000/-. The detail chart is given below:


Double Benefit Account
Dreams come true. National Bank Limited now offers Double Benefit Account for it's customers. The benefits under this scheme shall become double after 09 (Nine) years 06 (Six) months.

Benefits (condition apply)
·         Deposit of Tk.1, 00,000/- and its multiple without any upper limit shall be acceptable under this scheme.
·         A person is allowed to open more than one Double Benefit Account.
·         The account may be opened either singly or jointly.
·         All Double Benefit Account holders shall be offered with free Life Insurance Policy under this scheme.


Millionaire Deposit Scheme
Under this scheme one will deposit a fixed amount on monthly basis for 4, 6, 9 or 12 years and on maturity he/she will be just a millionaire.
Benefits (condition apply)
·         Deposit of fixed monthly amount for 4, 6, 9 or 12 years. Deposit size will be based on tenure. Upon maturity the depositor will get Tk. 10, 00,000/-.
·         A person is allowed to open more than one MDS Account.
·         The account may be opened either singly or jointly.
The detail chart is given below:


Activities undertaken in account opening
Bank provides account opening form to the prospective customer or applicant. The client fills up the form. But most of the time I filled up the information of the client in the application form. In the form I received applicant sign, nomine sign and introducer sign. I attached passport size photo of applicant and nominee.  Then I submitted the form to the authorize officer. If the application form properly fill up and the required document is present the authorize officer give the account number. After that the authorize officer gave an entry on the computer and signed in the form. After giving the entry the authorize officer get a customer ID number means the account is open.  Then I took a receive book and filled up the book. In receive book I wrote new account number and the amount that account holder must be paid to open an account. I wrote the number top of the form. The account holder paid the amount in the cash department. After paid the money I checked the book.  The manager and branch operation manager also sign in the form.



3.1.1.2 Account Closing
Account closing is also done by account opening section. The customer may close his/her/their account(s) at any time giving notice to the bank. Similarly, the bank on genuine ground may close customer(s) account giving reasonable notice for the action or without any notice if the conduct of the account is not satisfactory to the bank or any reason(s) whatsoever


Activities undertaken in account closing
In account closing most of the time I filled up the form. In account closing form I wrote account number and account holder name. I also collected signature of the account holder. I also collected unused leaves/cheque book provided by the bank. After that I brought the account opening form from the store room. After that I submitted the application form and the account opening form to the authorize officer. If the signature is match the authorize officer close the account. On closure of the account, the bank will pay the credit balance (if any) of the account and any profit due to the customer(s).



3.1.1.3 Account Transfer
National bank Ltd provides online banking system. But sometimes account holder want to transfer their account. Account opening section also transfers account to from one branch to another on customer’s request.


Activities undertaken in account transfer
First the bank provides the account transfer form. The account holder fills up the form. If account holder couldn’t fill up the form, I filled up the form. I also collected the signature of the account holder. The customer(s) must surrender the unused cheque books/leaves along with the requisition slip and other materials (if any) supplied by the bank for operation of the account. I brought the account opening form from the store room. After that the authorize officer verify of signature and send to the operation head. If the manager signed in the form, the authorize officer forward the documents to the respective branch and close the account.



3.1.1.4 Dormant Account Activation
An account is considered or classified as “Dormant” if the account remains inoperative for six months. To operate these accounts manager permission is necessary.

Activities undertaken in dormant account activation
For dormant account activation bank provide an application form. I filled up the form and collected sign of the account holder. After that I submitted the form to the authorize officer. The authorize officer verified the sign and activated the account.  I have done this work only one time in my internship period. To activate a dormant account, bank will charge Tk.500 + 15% VAT as activation fee.

3.1.1.5 Cheque Book Issue
Bank provides a cheque book seven day after requisition. The name of account holder, account number and cheque number are printed on the book and leaves. Bank usually issue cheque book containing 20 leaves for savings account, 50 leaves for current account. A charge for cheque book is Tk.3.00 per leaf. So, Tk.60.00 charged for 20 leaves cheque book and Tk.150.00 for 50 leaves cheque book.

Activities undertaken for cheque book issue
I provided the requisition form to the account holder. Sometimes I also filled up the requisition form and collected two sign of account holder. The authorize officer give an entry on the cheque requisition book. Sometimes I also gave an entry to the book. But the authorize officer also give an entry on the computer.  When the account holder came to the bank for cheque book I collected sign of account holder in a book and the authorize officer gave the cheque book.



3.1.1.6 Bank Account Statements & Certificates
All types of bank statements and certificates such as solvency certificates, income tax certificates, B.O. certificates etc. are issued by the bank on favor of the customers. As per customer’s instruction the bank dispatch the account statement/advice to his/her/their address. Moreover, on customer’s request, bank provides statement and certificates related to the account.

Activities undertaken for provide bank account statements & certificates
Sometimes I provided application form to the client or account holder. Account holder fill up the form with signature. I submitted to the authorize officer and the officer take necessary step for issuing bank account statement or certificate.



3.1.2 Remittance Section
Sending money from one place to another through some charges is called remittance. To pay or receive money of customers in the form of remittance from one place to another, from one person to another inside and outside the national boundary is an earning source of every bank. NBL operates both the foreign and local remittance to serve its customers.

Foreign Remittance
Foreign remittance is to send money of customers from one place to another, from one person to another outside the national boundary. Though Western Union, National Bank Ltd is able to serve the customers by paying their incoming foreign remittance in the form of local currency.

Activities undertaken in foreign remittance
When a customer come to the bank for receiving foreign remittance, the customer give his pin number and say from which country the sender send money to the authorize officer. He checks by his computer .If everything is ok, he gave me a form and two pieces of printed paper. From that printed paper I wrote sender information and the amount of money. I also wrote the receiver information from his/her national ID card. I also collected the receiver sign on the form. After that I attached receivers photocopy of national ID card to the form and submitted to the authorize officer.


Local Remittance
Sending money of customers in the form of remittance from one place to another, from one person to another inside the national boundary is another earning source of every bank. There are several techniques for collecting local remittance. These are:

·         Pay Order
·         Demand Draft (DD)
·         Telegraphic Transfer (TT)

Payment Order (P.O.)
Payment Order is a process of money transfer from payer to payee within a certain clearing area through banking channel. It's an order of local payment on behalf of the bank or its constitution. A customer can purchase different modes of payment Order such as pay order by cash and pay order by check.       
National bank charges different amount of commission on the basis of payment order amount:
Total Amount of PO
Commission (Tk.)
VAT (Tk.)
1-1,00,000
1,00,000-5,00,000
5,00,000-10,00,000
Above10,00,000
20
30
50
100
3
5
8
15

Activities undertaken for provide PO
I collected the pay order application form from the authorize officer and provided to the customer. The authorize officer give an entry to the record book. After that the authorize officer take a pay order form and fill up the form. Sometimes I filled up the form. I collected signature of two authorize officer. When I handover the pay order I also collected signature of the client.

Demand Draft
The demand draft is a written order by one branch of a bank upon another branch of the same bank to pay a certain sum of money to or to the order of a specified person. DD is the most frequently used mode of inland remittance. It is applicable outside the Dhaka City. The DD generally issued for party’s safety. If there is a huge amount to bear one place to another, then customer can do the DD and bear it to his destination instead of cash.


Activities undertaken for provide DD
The processing of Demand draft is all most same to pay order. The authorize officer write the dd. Sometimes I also wrote the demand draft. I collected the signature of second officer and when the clients receive the pay order, I collected his signature. 

Telegraphic Transfer (T.T.)
Telegraphic Transfer is the most rapid and convenient but expensive method. There are different modes of telegraphic transfer such as Fax, Mobile, Telephone Telex, and Telegram. If an applicant wants to transfer money quickly to the pay in another city or district he /she may request the banker to send it by TT.

Interest Rates of Different Accounts
Revised Schedule of Interest Rate - Percentage per annum
Deposit Type
Category of Deposit
Rate of Interest (p.a.)
Savings
Below 01 Crore
4.00%
1 Crore to below 25 Crore
4.25%
25 Crore to below 100 Crore
4.50%
100 Crore & above
5.00%
Special Notice Deposit
Below 01 Crore
4.00%
1 Crore to below 5 Crore
4.25%
5 Crore to below 10 Crore
4.50%
10 Crore to below 25 Crore
4.75%
25 Crore to Below 50 Crore
5.00%
50 Crore to Below 100 Crore
6.00%
100 Crore & Above
6.00%
FDR for 3 Months & Above But Less Than 6 Months
Any Amount
6.00%
FDR for 6 Months & Above But Less Than 1 Year
Any Amount
6.50%
FDR for 1 Year & Above But Less Than 2 Years
Any Amount
6.50%
FDR for 2 Years & Above
Any Amount
6.50%




Chapter—4: Job Responsibilities at NBL     

I joined in NBL Bhaluka Branch, as an intern on last November. During my internship period, I performed different activities in different section. I worked mainly in general banking section.

In National Bank Limited—Bhaluka Branch, different types of services that I did are given below in short-
i.                    Opening bank account
ii.                  Sending thanks letter to the new customer who are new in the branch.
iii.                Issuing cheque book for the customer.
iv.                 Issue voucher of transfer money
v.                   Receive cheque of different bank for collection and send it to clearing house for collection.
vi.                 Registering outward cheques in register book
vii.               Checking account balance of clients.
viii.             Closing a bank account.
ix.                 Giving cheque book.
x.                   Supervise the loan and foreign trade documents

4.1 Providing information as Front Desk officer
Front desk of NBL Bhaluka Branch is one of the important parts of general banking department. I tried to describe the scheme and facilities of the bank. In addition, I tried to build an efficient communication bridge between the bank and the clients. Moreover I strived to make the clients understand the easy way of dealing with their money and be readily accessible facilities of the bank. I also informed them the core systems of the central bank, risk and compliance. Information were like providing banking data content, providing banking business processes, providing services of the bank. I always tried to fulfill the requirements of clients and customized in an easy way to make them understand keeping in view the requirements of a bank.


4.2 Process of Opening of current & Savings A/C
While opening new accounts a systematic process must be conducted in order to ascertain the identification of the account holder and the beneficiaries/ nominees. Passport size photograph of the account holder & Nominee along with Transaction Profile and Known Your Customer Form (KYC) to be obtained in this process. Then Thanks letter to be sent to the customer to his/her present address to verify account holder’s address.


Know your Customer (KYC) Concept
The officer related to account opening formalities must know details of their customers (depositors and borrowers) because of the guidelines provided by the Central Bank to identify the source(s) of money and use of credit. It is said in the view of bank that, the banker-customer relationship is commenced through opening CD/STD/SB account. During the period of account opening, the customers must complete the KYC Profile which includes residence address, business address photographs, signatories, photocopy of valid passport, trade license, source of money, TI Number, photocopy of VAT Certificate, In case of company: photocopy of Memorandum of Association, certificate of incorporation, certificate of Board of Investment, list of directors, etc as per requirement of the bank. Information regarding business pattern, nature of business, and volume of business etc. can also be discovered. Any doubtful transaction must be addressed and find out to take corrective measures as per regulation of the Central Bank.

Following documents are required to be completed before a current or a savings account is opened in a bank.


4.3 Required Documents for Personal Account
i.                    Two copies of passport size photograph of the account holder(s)/person(s) who will operate the A/C duly attested by the introducer
ii.                  A/C to be introduced by current/savings account holder
iii.                Photocopy of valid passport (1 to 7 pages)/driving license/national ID card/employer’s certificate/national certificate issued by the Ward Commissioner or Chairman etc.
iv.                 Paper related to sources of income
v.                   One copy passport size photograph of nominee(Attested by Account Holder)
vi.                 TIN Certificate (if applicable)


4.4 Required Documents for Non-Personal (Corporate) Account
 Proprietorship Firm-
i.        Request Letter/Application in Firm’s Letter-Head Pad for Account Opening Purpose.
ii.      Up-To-Date Trade License, TIN,VAT Copies Of The Firm
iii.    Seal Of The Firm & Visiting Card Of The Signatory/Ies (If Applicable)
iv.     2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
v.       Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
vi.     Signature And 1 Copy Of Photograph Of Each Nominee (Attested By The Account Holder)
vii.   Tenancy Agreement Copy (If Applicable)

Partnership firm-
i.        Request Letter/Application in Firm’s Letter-Head Pad for Account Opening Purpose.
ii.      Registered Partnership Deed On Non-Judicial Stamp Of Tk.300 & List Of The Partners With Portfolio
iii.    Up-To-Date Trade License, TIN,VAT Copies Of The Firm
iv.     Resolution Regarding Operation Of Bank Account And Signing Of Bank’s Charge Documents With Execution Of Mortgage Deeds And Other Bank’s Papers & Documents Etc. As Per Partnership Deed
v.       Seal As Per Resolution & Visiting Card Of The Signatory(S)
vi.     2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
vii.   Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
viii. Signature And 1 Copy Of Photograph Of Each Nominee (Attested By The Account Holder)
ix.     Membership Certificate Of TRADE ASSOCIATION ,Chamber Of Commerce And Industry (If Applicable)
x.       Tenancy Agreement Copy In Between The Firm And The Landlord (If Applicable)

Limited company-
i.        Request Letter/Application In Company’s Letter-Head Pad for Account Opening Purpose.
ii.      Up-To-Date Trade License, Tin, Vat Copies Of The Firm
iii.    The Certificate Copy Of Memorandum And Articles Of Association By Register Of Joint Stock Companies & Firms
iv.     Up-To-Date Trade License, Tin, Vat Copies Of The Firm(If Applicable)
v.       Resolution Regarding Operation of Bank Account And Signing Of Bank’s Charge Documents With Execution Of Mortgage Deeds And Other Bank’s Papers & Documents Etc. As Per Memorandum And Articles Of Association
vi.     Seal As Per Resolution
vii.   2 Copies of Photographs of Each Signatory (Attested By Introducer/Chairman of the Company & Visiting Card of the Signatories.)
viii. Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
ix.     Complete Bio-Data With Passport Size Photographs Of All The Directors Of The Company Duly Singed By Them.
x.       Certified Copy Of Form No XII & XX Duly Issued By The Register Of Joint Stock Companies & Firms For Bank’s Records
xi.     Membership Certificate Of Chamber Of Commerce And Industry, Trade Association, Stock Exchange (If Applicable)
xii.   Tenancy Agreement Copy In Between The Firm And The Landlord (If Applicable)
xiii. List Of Directors With Complete Present And Permanent Address With Signature & Telephone Nos. On Letter-Head Pad Of The Company

School/college/educational institution
i.        Request Letter/Application in Institution’s Letter-Head Pad for Account Opening Purpose.
ii.      2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
iii.    List Of Members Of The Managing Committee
iv.     Resolution Of The Managing Committee Regarding Opening And Operation Of Bank Account

Club/association/society/religious institution
i.        Request Letter/Application in Institution’s Letter-Head Pad for Account Opening Purpose.
ii.      2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
iii.    List Of Members Of The Executive / Managing Committee
iv.    4. Resolution Of The Executive /Managing Committee Regarding Opening And Operation Of Bank Account
v.      5. Certified Copy Of Bye-Laws /Rules And Regulations/ Constitutions


Trust
i.        Request Letter/Application in Institution’s Letter-Head Pad for Account Opening Purpose.
ii.      2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
iii.    Attested Copy Of Trust Deed
iv.     Resolution Of The Committee Regarding Opening And Operation Of Bank Account
v.       Head Office Approval For Opening Trust Account

After the above formalities are over, the banker opens an account in the name of the applicant. It is essential that the applicant deposit some amount at the time of opening the account. The minimum amount to be deposited initially is TK.1000/- in case of savings bank account and TK.2000/- in case of a current account.


4.5 Issuing Cheque Book
There are two different procedure of issuing cheque book for savings account holders and current account holders. For savings account holders officer need to send request online for cheque book. It takes four working days to prepare their cheque books. After four working days the clients have to collect their cheque book from front desk.

Issue of duplicate cheque book
Duplicate checkbook instead of lost one should be issued only when an A/C holder personally approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing to indemnify the Bank for the lost cheque book. Fresh check Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required Excise duty only with prior approval of manager of the branch. Cheque series number of the new checkbook should be recorded in ledger card and signature card as usual. Series number of lost checkbook should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.


4.6 Closing of an Account
To close an account, one may be requested to send an application along with the unused pages of the check book that is issued to the person. After receiving the application, the signature of the account holder should be verified and the number of unused pages of the check book should be noted. Before the account is closed the manager will approve the application. Lastly closing charge should be debited to the account.




Chapter—5: Constraints & Challenges        

5.1 Identified/Observed in the Organization
There are certain constraints regarding the studies that are summarized below:
  • Time provided for conducting the study is an important constraint.
  • Field practice varies with the standard practice that also created problem.
  • The employees in National Bank Limited are so much busy in their responsible fields; they could hardly provide little time to discuss with them.
  • NBL has very poor IT department, while most of the other banks has strong IT department.
  • NBL does not have online facilities like other private bank.



5.2 Academic Preparation
Internship Program brings a student closer to the real life situation & thereby helps to launch a career with some prior experience. There are a few similarities between our academic preparation and assigned tasks. We have learned so many things of accounting and finance but in bank I worked in general banking section. Most of the time we practice manufacturing firm financial statement. But bank financial statements are all most different.



Chapter—6: Lesson Learned From The Program

6.1 Lessons Learned from Experience Point of View
·         Senior colleagues, acted like mentor, with lot of experience are great help for fresh trainee like me. I learned much necessary information about the banking sector and their activity form my senior colleague.
·         As my focused concern was General Banking so I was more involved with that, than other department. Now, it is very clear to me how NRB Global Bank Limited operates their operation on the ground of general banking in this country.
·         Initially, I was conscious about my experience in banking sector. Thereafter, I found out applying the academic knowledge in practical ground makes job easier. I started applying my knowledge gathered from University in my practical actions.

6.2 Lessons Learned from Employee Point of View
·         Learned the formalities to open several account in NRB Global Bank Limited.
·         Understood the requirements and importance of information for opening an account.
·         Learned the procedures to close an account.
·         Dealing with information to client
·         Verifying signature in different issue was one of my learning from the Bank.
·         Learned the process to renew FDR account at the Bank.
·         Knew formalities to issue a Pay Order.
·         Learned how to issue inward and outward cheques.
·         Learned the procedures to issue Demand Draft.
·         Learned how to issue check book.
·         Learned to issue and accept mails for Head Office.

6.3 Lessons Learned from Working Environment Point of View
·         Learned how to deal with the clients in a critical situation and busy hour.
·         Learned how to handle unfriendly colleague in different situation.
·         Tried to overcome from the fear of unknown from the unfriendly environment.
·         Learned to tackle corporate culture and banking activities.


6.4 Lessons Learned Regarding Conduct as a Service Provider
·         Learned the way of conduct as a service provider.
·         Learned how to match up with other colleague and clients.
·         It was a great lesson for me to make the working environment friendly.


6.5 Lessons Learned from Personal Problems
·         Maintain the study and profession together sometimes become critical. I understood that both are having negative effect on each other.
·         Various training on banking and learning from the mistakes can bring consistency and accuracy in work.
·         Learned about the office environment.


All this above learning point will be helpful for my job career by applying all of these.


Chapter—7: Conclusion                                      

Recapitulation / Summary
Today the banking service is very competitive. So the real from the practical materialization, I have reached a firm and concrete conclusion. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desire level computerized transaction is must for a modern banking.
National Bank Limited is a new generation Bank. It is committed to provide high quality financial services or products to contribute to the growth of GDP of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country. The is not so far when it will be in a position to overcome the existing constraints and it may be expected that by establishing a network over the country and by increasing resources this bank will be able to play a considerable role in the portfolio of development of financing in Bangladesh.
Success in the banking business largely depends on effective management, excellent service, latest technology, goal setting and overall plane. National Bank Limited has every quality to do the business successfully. I think, within few years, National Bank Limited will achieve top class banking business bank in our country.



Chapter—8: Recommendations                       

Recommendations for Future Strategic Actions
On the process of collecting, gathering, synchronizing and preparing this report and passing 2 months in National Bank, I have found so many good things and some problem as well as of both Organization and University. There are certain constraints regarding the studies and my recommendations are given below:

Time Allocation: Time provided for conducting the study is an important constraint. The time should be lengthier so that we can do our assigned tasks properly.

Realistic Practices: Field practice varies with the standard practice that also created problem. To resolve the difference between our academic preparation and real situation academic lessons should be more realistic.  The academic syllabus should include more realistic courses and curriculum to prepare ourselves for banking sector. University may include more courses related banking sector.

Employee Contribution: The employees in National Bank Limited are so much busy in their responsible fields; they could hardly provide little time to discuss with internee. They should be more attentive and give more time. The employees should be more attentive to the internees so that we can learn properly.

IT Upgrade: NBL has very poor IT department, while most of the other banks has strong IT department. If their IT department becomes more effective then we will be able to collect the information easily.



Chapter—9: References                                     

Reference List
 Books& Reports:
  • Annual Report of National Bank Limited
  • Banking journal.
·         National Bank Limited web site http://www.nblbd.com
·         http://www.studymode.com/essays/496136.html
·         Several Booklets from National Bank Limited. 
·         Several News letters from National Bank Limited







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