Total Banking System of Jamuna Bank Limited

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1.0 Introduction
It’s simple enough to say that Bank is financial organization that deals with money. But it is the
precise most definition about bank. In modern age it is impossible to think a country without
bank. Banks play diversified role in an economy. Banking plays very significant contribution
towards socio-economic development of a country. This sector is considered to be like the life
blood the economy as well. As one of the most important components of the financial system it
forms the core of the money market and plays very pivotal role in mobilizing resources for
productive investments in a country which in turn contributes to economic development. The
efficiency of the sector is very important for overall development of the country. The most
important task that is done by a bank is building of capital. That is the key factor of the
development of an economy. An Industrialized nation’s build their industrial sector with the help
of banking sector. The growth of the economy also depends on the performance of the banking
sector. Banks secure money of the society. Government takes various monetary policies. These
policies are implemented with the help of banking sector. It is impossible to do foreign trade
without the help of bank. Banks provide services that help the business sector a lot to carry on
the business.
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994
with its Head Office at Chini Shilpa Bhaban, 3 Dilkusha C/A, Dhaka-1000. The Bank started its
operation from 3rd June 2001. Jamuna Bank Ltd. is a third generation bank in Bangladesh. It is
playing an important role to develop the business sector. The growth of this bank is very good.
Its motto is to provide a prompt and quick service to the clients. Jamuna Bank Ltd. has
implemented well structured online banking systems that make it easier to provide prompt
services to the customer.
This report has been prepared in the light of practical as well as theoretical knowledge.
Also it is prepared under the guidance and supervision of the core teacher. During the internship
program I have got a good idea about the bank and that is depicted in the report.

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1.1 Origin of the Report
The BBA (Bachelor’s of Business Administration) internship program is required course for the
students who are graduating from East West University. It is a three credits hour course with the
duration of 3 Months. Students who have completed all the required courses are eligible to for
this course. In this internship program, I was attached to do my internship by rotation to all
departments of Jamuna Bank Limited, Shatinagar Branch, Dhaka. Both the academic supervisor
assigned me on this project. The report is on “Overall Banking System of JAMUNA Bank
Limited”.
1.2 Objective of the Study
The objectives of the report is to make us known the practical situation of commercial banks of
Bangladesh in overall activities and prepare me to face the complex situation of banking in this
country .The primary objective of this report is to commonly with the requirement of JBL.
However the objectives of this study are something broader. Objectives of the study are
summarized in the following manner.
General objectives:
The general objective is to prepare and submit a report on “Overall Banking System of Jamuna
Bank Limited”.

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Specific objectives:
To apply theoretical knowledge in the practical field.
To present an overview of JAMUNA Bank Ltd
To develop our skill on the banking sector
To earn valuable knowledge about the general banking system
To know the customer service of banking sector.
To observed the practice of modern technology in banking sector.
Practical knowledge about transaction.
To assess the strength and weakness.
To identify possible areas of improvement
1.3 Methodology of the study
At the time of my internship period, I tried to use both primary and secondary data that I have
gathered from different sources. For preparing this report primarily I got some data from face to
face conversation of different employees of JBL Shantinagar branch and some from different
reports and features of the bank. Sometime I have undergone group discussion, asked some
questionnaires to the responsible officer of that work and interviewed with some of them. I
observed different parties and their transaction from a very close eye .all of this observation and
data are included in this report.
Source of data:
These sources are as follows:
Primary source:
Primary data are collected through two ways. These are:

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a) Questionnaire: some primary data are collected by taking interview and by discussion with the
executives and officer of JBL.
b) Observation: Here primary data are collected through spending three month in the JBL during
the working hour. Here I observed the total banking process of JBL.
Secondary source:
Secondary data are collected from the following sources:
a) annual reports of JBL
b) Published documents
c) Official files
d) Data available with the website of JBL.
e) Different publication of Bangladesh bank and Bangladesh economic reviews.
f) Outlets of Bangladesh Institute of Bank Management.
1.4 Scope of the study
The report commences with the outline of the organization in focus, presenting the mission and
vision, individual department job responsibilities. For conducting this study an overall
knowledge of the total banking system will necessary because the departments banking are
linked with each other due to some partial proceeding. The scope of the organization part covers
the organization structure, background, objective, function, departmentalization and business
performance of JBL as a whole.
The main part covers the operation scenario of a branch of JBL. This refers how the bank helps
the customer in general banking and foreign exchange banking. It also covers loan and advances
facilities of JBL, credit appraisal system, and activities of credit department.

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1.5 Limitation of the Study
Three months is not enough to know about commercial banking operation through I have been
received maximum assistance from the every individual of the JBL Shantinagar Branch.
Definitely, I could not produce an outstanding report for the time limitations. Due to the time
limit, the scope and dimension of the study has been curtailed.
The Term paper is likely to have following limitations:
 Since the ideal size of data could not be taken, suggested operating process may not be useful
without appropriate modifications.
 Due to shortage of time, the accuracy of information may not have been completely perfect.
 The Operating Process is a theoretical suggestion. Only a practical application of this may
justify its effectiveness that could not be done due to time limitation.
 Lack of comprehension of the respondents was the major problem that created many
confusions regarding verification of conceptual question.
 Confidentiality of data was another important barrier that was faced during the conduct of
this study. Every organization has their own secrecy that is not revealed to others. While
collecting data on JBL, personnel did not disclose enough information for the sake of
confidentiality of the organization.
 Rush hours and business was another reason that acts as an obstacle while gathering data.

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2.1 Overview of Jamuna Bank
Jamuna Bank Limited is a banking company registered under the companies Act 1994 with its
Head office at Chini Shilpa Bhaban (2nd
floor, 3rd floor & 8th
floor), 3, Dilkusha, C/A, Dhaka-
1000. The bank started its operation from 3rd
June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized
Capital and Paid-up Capital of Tk.10000 million and Tk.4488 million respectively. The Paid-up
Capital has been raised to 840 million and the total equity of the bank stands at 8325 million as
on December 31, 2012.
JBL undertakes all types of banking transactions to support the development of trade and
commerce of the country. JBL’s services are also available for the entrepreneurs to set up new
ventures and BMRE of industrial units. The Bank gives special emphasis on Export Import,
Trade Finance, SME Finance, Retail Credit and Finance to Woman Entrepreneurs.
To provide clientele services in respect of international Trade it has established wide
correspondent banking relationship with local and foreign banks covering major trade and
financial centers at home and abroad.
Jamuna Bank Ltd., the only Bengali named new generation private commercial was established
by a group of winning local entrepreneurs conceiving an idea of creating a model banking
institution with different outlook to other the valued customers, a comprehensive range of
financial services and innovative products for sustainable mutual growth and prosperity. The
sponsors are reputed personalities in the field of trade, commerce and industries. The Bank is
being managed and operated by a group of highly educated and professional team with

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diversified experience in finance and banking. The scenario of banking business is changing
environment. Jamuna Bank Ltd. Has already achieved tremendous progress within only two
years. The Bank has already ranked the top out as a quality service provider & is known for its
reputation.
Organizations are open system that needs careful management. Jamuna Bank discreetly pursues
the principles of openness, disclosure and compliance to regulatory authorities, transparency in
performance, integrity in dealings, ethics in banking and accountability to the shareholders in
corporate governance. Jamuna Bank is pledge-bound to keep it free from the clutches of loan
default culture. All our units are the centers of excellence. Our underlying commitment to
professionalism and a single-minded devotion to service to our customers characterizes our style
in all operations. We involve with the changing needs of our customers and the processes go on.
The Bank ensures orderly relations between clearly defined functions of the Board of Directors
and the management. Their role remains sharply bifurcated .The Board formulates policies and
frames procedures. Be management implements them and acts within norms. The management
enjoys full independence in managing the banking industry, especially its credit portfolio without
any undue influence from outside. It, however, functions in a reutilized, efficient, suitable and
dynamic way to foster progress, promote general welfare of the society and infuse its people to
serve the nation. In corporate governance, we strictly comply with the requirement of companies
Act-1994, Bank Companies Act 1991, rules and regulation of Bangladesh Bank and other
regulatory authorities.

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2.2 Management Structure:
JBL is managed by highly professional people. The present Managing Director of the bank is a
forward –looking senior banker having decades of experience and multi discipline knowledge to
his credit both at home and abroad. He is supported by an educated and skilled professional team
with diversified experience in fiancé and banking. The Management of the bank constantly
focuses on the understanding and anticipating customers’ needs and offer solution thereof.
Jamuna Bank Limited has already achieved tremendous progress within a short period of its
operation. The bank is already ranked as one of the quality service providers & known for its
reputation.
2.2.1 Board of Directors:
Mr. Kanutosh Majumder
Chairman
Al-haj M. A. Khayer
Director
Engr. A. K. M. Mosharraf Hussain
Director
Engr. Md. Atiqur Rahman
Director
Mr. Golam Dastagir Gazi, Bir
Protik
Director
Mr. Fazlur Rahman
Director
Al-Haj Nur Mohammed
Director
Mr. Md. Tajul Islam
Director
Mr. Sakhawat, Abu Khair
Mohammad
Director
Al-haj Md. Rezaul Karim
Ansari
Director
Mr. Md. Belal Hossain
Director
Mr. Md. Mahmudul Haque
Director
Mr. Shaheen Mahmud
Director
Mr. Md. Sirajul Islam Varosha
Director
Mr. Gazi Golam Murtoza
Director
Mr. A. S. M. Abdul Halim
Independent Director
Narayan Chandra Saha
Chowdhury Mohammad Mohsin
Md. Rafiqul Islam
Shafiqul Alam
Managing Director

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2.2.2 Audit committee
In line with the guidelines of Bangladesh Bank, an Audit Committee of the Board of Directors
has been formed to assist the Board with regards to Audit and Internal Control system of the
Bank.
Members
Mr. A. S. M. Abdul Halim, Independent Director & Chairman
Mr. Golam Dastagir Gazi, Bir Protik, Director
Al-haj Md. Rezaul Karim Ansari, Director
Mr. Md. Sirajul Islam Varosha, Director
Mr. Md. Rafiqul Islam, Independent Director
2.2.3 Executive Committee
All routine matters beyond delegated powers of Management are decided upon by or routed
through the Executive Committee subject to ratification by the Board of Directors. The Chairman
of this Committee is being selected by rotation. Currently, the Executive Committee of Board of
Directors is constituted with the following members:
Members
Mr. Shaheen Mahmud, Director & Chairman
Alhaj M. A. Khayer, Director
Engr. Md. Atiqur Rahman, Director
Al-Haj Nur Mohammed, Director, JBL & Chairman, JBF
Mr. Md. Tajul Islam, Director
Mr. Sakhawat, Abu Khair Mohammad, Director
Mr. Md. Belal Hossain, Director

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2.2.4 Higher Management
Shafiqul Alam
Managing Director
Mirza Elias Uddin
Ahmed
Deputy Managing
Director
Mosleh Uddin Ahmed
Deputy Managing
Director
A. K. M. Saifuddin
Ahamed
Deputy Managing Director
2.2.5 Risk Management Committee
Members
Mr. Kanutosh Majumder, Chairman (BOD)
Engr. A. K. M. Mosharraf Hussain, Director
Mr. Fazlur Rahman, Director
Mr. Md. Mahmudul Haque, Director
Mr. Gazi Golam Murtoza, Director

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2.2.6 Divisional Heads
Division Name and Designation
Credit Risk
Management
Division
Md. Habibur Rahman
Senior Executive Vice
President
1. Human
Resources
Division
2. PR & Brand
Communication
Division
Mahbubul Huq
Choudhury
Executive Vice President
Anti Money
Laundering
Division
Khandaker Khalidur
Rahman
Information &
Communication
Technology
Division
Ahmed Nawaz
Senior Vice President
Internal
Control &
Compliance
Division
Ahamed Sufi
Card & ADC
Division
Mr. Md. Mohi Uddin
Financial
Administration
Division
Ashim Kumer Biswas
Division Name and Designation
1. Board's
Secretariat
2. Share
Division
Malik Muntasir Reza
Monitoring
Division
Md. Belal Hossain
General &
Common
Services
Division
S.M. Ashafuddoullah
Vice President
Capital Market
Operation
M.M. Mostafa Bilal
Vice President
SME Division
Ashif Khan
Vice President
Risk
Management
Division
Md. Shah Alam
Vice President
Law &
Recovery
Division
Abdul Awal Khan
Vice President

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Banking
Operation
Divsion
S M Jamal Uddin
Vice President
Credit
Administration
Division
Md. Abul Bashar
Mazumder
Vice President
Corporate
Banking
Division
Ahsan Tariq
Senior Assistant Vice
President
Agricultural
Loan Unit
Md. Mamtaz Uddin
Chowdhury
President
NRB Banking
& Foreign
Remittance
Division
Abdus Sobhan
President
International
Division
Mohammad Shamsur
Rahman
President
Trade Finance
Processing
Centre
A.S.M. Humayun Kabir
Assistant Vice President
Retail Banking
Division
Syed Serwarul Islam
Treasury
Division
Md. Mehedi Hasan
Islamic
Banking
Division
Md. Ashaduzzaman
First Assistant Vice
President
Offshore
Banking Unit
Md. Nazmul Hassan
President
Marketing &
Development
Division
Noor Nabi Khan
Presiden

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2.3 Organogram of JBL
Chairman
Managing Director (MD)
Deputy Managing Director
(DMD)
Senior Executive Vice President
SVPSVP (Credit)SVP (HRD)SVP (Board
Secretary)
Vice
President
SAVP
Senior Executive Vice President Senior Executive Vice President
SVPSVP (Credit)
Assistant Vice
President
First Assistant Vice President
Jr. Assistant Vice
President
Senior Executive
officer
Executive officer
First executive officer
Officer
First Officer

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2.4 Corporate Mission, Vision & Motto
2.4.1 Vision:
 To become a leading banking institution and to play a pivotal role in the development of
the country.
 To stand out as a pioneer banking institution in Bangladesh.
 To contribute significantly to the national economy.
2.4.2 Mission:
The Bank is committed to satisfying diverse needs of its customers through an array of
products at a competitive price by using appropriate technology and providing timely service so
that a sustainable growth, reasonable return and contribution to the development of the country
can be ensured with a motivated and professional work-force.
Jamuna Bank Limited aims to become one of the leading Banks in Bangladesh by prudence, flair
and quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. Some of them are as follows as:
 Fast & accurate customer service and Innovative banking at competitive price.
 High quality financial services with the help of latest technology.
 Deep commitment to the society and the growth of national economy.
 Attract and retain quality human resource, High standard business ethics.
 Balanced growth strategy, Steady return on shareholders’ equity
2.4.3 Motto:
The Bank will be a confluence of the following three interests:
Of the Bank : Profit Maximization and Sustained Growth.
Of the Customer : Maximum Benefit and Satisfaction.
Of the Society : Maximization of Welfare

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2.5 Strategies of Jamuna Bank Ltd
 To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund.
 To strive for customer satisfaction through quality control and delivery of timely
services.
 To identify customers' credit and other banking needs and monitor their perception
towards our performance in meeting those requirements.
 To review and update policies, procedures and practices to enhance the ability to extend
better service to customers.
 To train and develop all employees and provide them adequate resources so that
customers' needs can be reasonably addressed.
 To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion.
 To cultivate a working environment that fosters positive motivation for improved
performance
 To diversify portfolio both in the retail and wholesale market
 To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers.
2.6 Objectives of Jamuna Bank Ltd
 To earn and maintain CAMEL Rating 'Strong'
 To establish relationship banking and improve service quality through development of
Strategic Marketing Plans.
 To remain one of the best banks in Bangladesh in terms of profitability and asset quality.
 To introduce fully automated systems through integration of information technology.
 To ensure an adequate rate of return on investment.
 To keep risk position at an acceptable range (including any off balance sheet risk).
 To maintain adequate liquidity to meet maturing obligations and commitments.

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 To pursue an effective system of management by ensuring compliance to ethical norms,
transparency and accountability at all levels.
2.6 Offers of Jamuna Bank Ltd
 Term loans especially to develop small scale enterprises and also attach special
importance to technical and advisory support in order to enabling them to run their
enterprises successfully.
 Full-fledged commercial banking services including collection of deposit, shortterm trade
finance, working capital finance in processing and manufacturing units and financing and
facilitating international trade.
 Technical support to Small Scale Industries (SSIs) in order to enable them to run their
enterprises successfully.
 Micro Credit to the urban poor through linkage with NGOs with a view to facilitating
their access to the formal financial market for the mobilization of resources is another
diversification of our services.
 In order to perform the above tasks, Jamuna Bank Ltd. works closely with its
 Clients, the regulatory authorities, the shareholders (GOB), banks and other financial
institutions.
2.7 Corporate social responsibilities of Jamuna Bank
Jamuna Bank is the 3rd generation junior most bank. From the beginning, the bank is keen to
serve the society and welfare of the people as the corporate social responsibilities. To make
effective contribution by these CSR activities, the governing body of the bank established
Jamuna Bank Foundation in the year of 2007. The bank has appeared as a satisfactory bank to
the central bank. Jamuna Bank every year spends portion of its profit for backward people of the
country.

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CSR activities of Jamuna Bank foundation are:
 Anti-drug Movement
 Blood Donation Program
 Medical college & Hospital along with free Eye camp and Dental camp
 Scholarship giving ceremony
 Providing free Treatment
 Qirat competition
 Relief distribution for Disaster affected people
 Discussion on Significance of Ramadan & Lifestyle of Prophets
 Blanket & Cloth distribution among cold-hit distressed people
 Sewing Training Center
 Establishment of Free Primary School
 Providing Computer Training by Jamuna Bank Foundation
 Tree Plantation & Distribution
 Annual School Sports Day & Award-giving Ceremony
 Donating in Nimtoli Tragedy
 Donating for Development of Sports for the country
 Monthly Donating for BDR Tragedy
 Donating in Liberation War Museum

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3.1 JBL Personal Banking Services
Personal Banking services of Jamuna Bank offer wide-ranging products and services matching
the requirement of every customer. Transactional accounts, savings schemes or loan facilities
from Jamuna Bank Ltd. make available you a unique mixture of easy and consummate service
quality.
Products of Jamuna Bank Ltd. can be divided into two parts. They are
a) Deposit product
b) Loan products.
a) Deposits products are divided into three parts
1) Transactional Accounts
2) Fixed Deposit Receipts
3) Special Deposit Scheme
1) Transactional Accounts
i) Savings account
Bank considers it as Low cost liability product. The cost of Capital is Only Five percent. Savings
Bank Account may be opened in the name of adult individual who are mentally sound and also
jointly in the names of two or more persons payable to either or both or all of them or to the
survivor or survivors.
ii) Current Deposits
CD Stands for current Deposits. It is cost free. No interest given by the bank on this kind of
account. As it has no cost and more over bank charges on different services, the target of the
bank is to increase the number of current account clients. It can be opened by the name of any
organization and not in personal name. Current account is most suitable for private, traders,
merchants, exporters and importer. One can enjoy maximum flexibility and convenience he or
she opens a current account with JBL.

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iii) Short Term Deposits.
This is also another low cost product. Anyone can open deposit like this one. Generally these
accounts are opened by Government, Companies or Administration persons. To get the interest
deposit need to keep for a minimum of seven days. Deposits under this category is withdraw
able at a minimum of 7 (seven) days notice.
iv) Special Savings Accounts:
JBL offer Special Savings Accounts to attract different type of segments in the competitive
markets. These are Grihini savings account, student savings account and senior Citizen Saving
Account, Which provide better interest rates and specialized services for particular groups.
v) Resident Foreign Currency Deposit (RFCD) Accounts
Persons ordinarily resident in Bangladesh may open and maintain RFCD accounts with foreign
exchange brought in at the time of their return from travel abroad. Any amount brought in with
declaration to Customs Authorities in form FMJ and up to US$5000 brought in without any
declaration. Balance in these accounts shall be freely transferable abroad. Fund from these
accounts may also be issued to account-holders for the purpose of their foreign travels in the
usual manner.
2) Fixed Deposit Receipts
Generally JBL offers Fixed Deposit for 3 months, 6 months and 12 months tenors at attractive
interest rates.
FDR for One month 8.00 %
FDR for Three month 10.00 – 10.75 %
FDR for Six month 10.00 – 10.75 %
FDR for Twelve months 10.00 – 10.50 %

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However, one can have Fixed Deposit having a tenor more than 12 months under different
schemes like:
 Double Growth Deposit Schemes (DGDS) and Triple Growth Deposit Schemes (TGDS) :
For people who have cash flow at this moment and want to get it doubled/tripled quickly JBL
has introduced Double/Triple Growth Deposit Scheme that offers to make double/triple money
within 5.7 years and 8.6(eight and a half) years respectively resulting a high rate of interest.
 Monthly Benefit Scheme (MBS):
Jamuna Bank Limited’s Monthly Benefit Scheme (MBS) are for the prudent persons having
ready cash and desiring to have fixed income on monthly basis out of it without taking risk of
loss and without enchasing the principal amount. This scheme offers highest return with zero
risk. Everyone can plan monthly expenditure with the certain monthly income under the scheme.
Tenor Fixed Deposit Monthly Payable Amount
3 Years Tk.1 Lac Tk.1000.00
5 Years Tk.1 Lac Tk.1050.00
 Pension Deposit Scheme: JBL Pension Deposit Scheme is designed for better future after
retirement
 Education Savings Scheme: Education is a basic need of every citizen. Every parent wants to
impart proper education to their children. Education is the pre-requisite for socio-economic
development of the country. As yet, there is no arrangement of free education to the citizens
from the government level. As such, there should be
pre-arrangement of fund to ensure
higher education’s the children. Otherwise higher education may be hindered due to change
of economic condition, income of the parents at the future time when higher education shall
be required. Today's higher education is becoming expired day by day. Parents can get relief
and can have peace of mind if they can arrange the necessary fund for higher education of
their children. As such, JBI, has introduced 'Education Savings Scheme' which offers you an

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opportunity to build up your cherished fund' by monthly deposit of small amount it at your
affordable capacity or initial lump sum deposit to yield handsome amount on a future date to
meet the educational expenses. Under this Scheme you have the different attractive options to
avail the future benefit i.e. withdrawal of the total amount accumulated in lump sum or
withdrawing monthly benefit to meet educational expense keeping die principal amount
intact or to withdraw both principal and accumulated profit monthly for a certain period.
3) Special Deposit Scheme
 Monthly Savings Scheme (MSS): It’s good to save for rainy days and for prosperous
future. Savings can meet up any emergences. JBL has introduced Monthly Savings
Scheme (MSS) that allows saving on a monthly basis and getting a handsome return upon
maturity. If anyone wants to build up a significant savings to carry out you’re cherished
Dream, JBL MSS is the right solution.
 Lakhpati Deposit Scheme: To become a lakhpati is a dream to most of the people of
Bangladesh especially to the lower and lower middle class income group. They
experience their expectations and wants are enormous in nature in our small span of life.
To meet our deposit and wants we need right plan. Keeping the above in mind JBL has
introduced "Lakhopati Scheme" which has flexibility report of maturity and monthly
installment as per affordable capacity.
 Millionaire Deposit Scheme: JBL offer a deposit scheme which makes a customer
millionaire after certain time. It’s a dream for small savers to be a millionaire. This
dream can come to reality if saver has a calculated savings plan.
 Kotipoti Deposit Scheme: To become ‘Kotipati' is simply a dream for the most of the
populace of Bangladesh. It is realizable for high income group who have strong
determination and savings habit. If you decide and plan to save money from your regular
income, you can own Tk1.00 crore easily by making a planned savings. In this regard,
JBL has introduced “Kotipati” Deposit Scheme” offering the savings plan fit to your
income and to execute your dream to be a Kotipati by monthly deposit at your affordable

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capacity. You can take advantage of the “Kotipati Deposit Scheme” from JBL and plan
for your golden future accordingly.
 Marriage Deposit Scheme: Marriage of children, especially daughter is a matter of great
concern to the parents. Marriage of children involves expense of considerable amount.
Prudent parents make effort for gradual building of fund as per their capacity to
meet the matrimonial expense of their children specially daughters. Parents get
relief and can have peace of mind if they can arrange the necessary fund for
marriage of their children, no matter whether they survive or not till the marriage
occasion. It can be a great help to the parents if there is any scope of deposit of a
modest mount as per their financial capacity, which groves very fast at high rate of
interest yielding a sizeable amount on maturity. With this end in view JBL has
introduced Marriage Deposit Scheme, which offers you an opportunity to build - up
your cherished - fund by monthly deposit of serial, amount at your affordable capacity.
b) Loan Products: Jamuna Bank designed different types of loan according to the need of
customers.
Loan types Purpose Minimum Income Loan Size
Maximum
Term of
Loan
Auto Loan
To procure brand
new/reconditioned Personal
Transport, of age not more than 5
years. The Vehicle should have
maximum 10(ten) seats. Model
year is in the limit of 5 year.
Net Income should
be at least Tk.
40,000/- per month
Minimum 5.00
Lac Maximum
Tk. 20.00 Lac.
5 years
Any Purpose
Loan
For construction & renovation of
residential house/building and
purchase of Flat/Apartment &
any lawful purpose.
Net Income should
be at least Tk.
40,000/- per month
Minimum 2.00
Lac Maximum
Tk. 75.00 Lac.
10 years.
Personal
Loan
Any lawful purpose. Net Income should
be at least Tk.
40,000/- per month
Minimum 2.00
Lac Maximum
Tk. 20.00 Lac.
5 years

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Salary Loan
Any lawful purpose.
Net Income should
be at least Tk.
15,000/- per month
Minimum 1.00
lac Maximum Tk.
8.00 lac Or 12
times of gross
salary, whichever
is lower
5 year
Doctors
Loan
Educational Expenses, Office
Equipment, Medical Equipments
Purchase, Professional
Equipment Purchase,
Commercial/Office/Chamber
Space Purchase/,
Renovation/Decoration, Office
Decoration, Equipments,
Electronics items purchase
Net Income should
be at least Tk.
30,000/- per month.
Minimum 2.00
lac Maximum Tk.
50.00 lac.
5 year
Education
Loan
Student supposed to bear (1)
Tuition Fees (2) Living Cost (3)
Other Educational Expenses (4)
Consultants Fee (5) Visa
Processing fees (6) Traveling
Cost (7) Document/Other
verification Fees (8) Purchase of
Educational Equipments/Gadget
(9) any other cost not stated
above but acceptable to the bank.
Gross Monthly
Income of the
Customer/Guarantor
should be at least
Tk. 30,000/- per
month.
Minimum 1.00
Lac Maximum
Tk. 10.00 Lac
4 year
Overseas
Job Loan
Travel expenses, marital
expenses, Educational expenses,
Festival expenses, Home
construction, House renovation,
Land purchase, Transport
purchase, Office equipment,
Professional equipment purchase,
office space purchase, shop space
purchase, Office decoration,
Household
durables/equipments/electronics
purchase.
Net Income should
be at least Tk.
50,000/- per month.
Minimum 2.00
Lac Maximum
Tk. 50.00 Lac
5 year

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3.1.1 Other services of Personal Banking Division
Personal Banking Division (PBD) issues both VISA Debit Cards and VISA Credit Cards.
VISA is the renowned Card brand in the earth. Jamuna Bank Limited is a principal member of
VISA Worldwide. Remittance Cell is another successful wing of the Personal Banking Division.
Product range includes:
VISA Debit Cards - You can now avail the convenience of VISA Debit Card. It is the easiest and
the most secured way of utilizing your money for 24/7 retail purchases as well as cash
withdrawal.
VISA Credit Cards - The JBL Credit Card gives you a fast, convenient and reliable way to pay,
24 hours a day, wherever you are in the world. VISA Classic, VISA Gold.
International Credit Cards – JBL International Credit Cards (VISA) allows you flexibility and
convenience when you travel internationally. The VISA International card entitles you to
exclusive discounts worldwide. VISA Dual (Gold)
JBL Remittance Cell – “Remit Fast” is the motto of JBL Remittance Cell. It provides the best &
faster services to its customers and connects the world through the renowned money exchange
agencies. Such as Placid Nk Corporation, Moneygram Payment System Inc., Raffles Exchange
Ltd.UK, Euro Bangla Money Transfer (UK) Ltd., Moneylink,UK, Homelink Remit (UK) Ltd.,
Rumana Money Services. Customers can avail improved pricing on remittance.
3.2 JBL Corporate Banking Services
Corporate Banking of Jamuna Bank Limited offers customized corporate banking solution for
both its local Business Houses as well as Multinational Companies. The axiom of JBL’s
Corporate Banking services is to nurture Relationship Banking by maintaining strong
relationship with premier corporate business houses of the country providing their requirement
based financial and other banking services. JBL’s Corporate Banking Division is well equipped
with skilled and experienced personnel who have vast exposure in this area and who being
Relationship Managers maintain one to one relationship with all corporate business houses
having relationship with the Bank. Relationship Managers are relentless in meeting the exact
need and any emergency requirement of the corporate customers.

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JBL’s Corporate Banking exposure is concentrated in diversified areas of business that include:
 Spinning
 Textile
 Garments
 Garments Accessories
 Iron & Steel
 Cement
 Building Materials
 Furniture & Furniture materials
 Edible Oil
 Food & Beverage items
 Various Trading
 Ship Building
 Ship Breaking
 Infrastructure Building &
Construction
 Electronics & Electrical Equipments
 Agro & Agro Products
 Transport
 Real Estate
 Telecommunication

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3.3 Islami Banking Activities
Besides conventional banking, Jamuna Bank Limited is carrying Islami Banking activities based
on Islami Shaiah principles. The first Islami Banking branch of the Bank opened on October 25,
2003 at Nayabazar in Dhaka. Afterwards it’s second branch opened on November 27, 2004 at
Jubilee Road in Chittagong. Jamuna Bank Limited is committed to conduct business of it’s
Islami Banking branches strictly complying Shariah requirements. To achieve this goal a Shariah
Supervisory Committee has been constituted with renowned Islami scholars of the country and
senior banker having Islami Banking experiences in depth knowledge of conventional and Islami
Banking. All activities of Islami Banking branches are carried out under the guidance of this
Committee. A separate division has also been created at Head Office.
3.4 NRB Banking
Jamuna Bank Ltd is one of the fast growing private commercial bank in the country having wide
Branch & Associate network throughout the Country. All the branches are running with real-time
Online and ATM facilities to settle their transaction from remote areas. JBL have dedicated NRB
Banking Dept. to ensure personalized services to the valued customers at branch & Head Office
Level. JBL have an admirable Remittance Tie-up with a good number of world renowned
Exchange Houses and Banks throughout the World to facilitate the Remittance services to the
Beneficiaries. Besides JBL have 87+ Branch network and 1,800 ATM outlets (own & shared)
throughout the Country. JBL have also a strong Remittance Settlement/distribution Network with
different Associate Banks & BEFTN (Bangladesh Electronic Fund Transfer Network) covering
more than 8000 remote locations throughout the Country. To ensure JBL’s reach to the doorstep
of JBL’s valued customers / Beneficiaries JBL have arranged M-Remittance facilities with
Grameenphone, Banglalink, ROBI.
Main purpose is to cater to the needs of NRBs & their beneficiaries offering deposit and loan &
investment products and services. Prioritizing the needs of NRBs, JBL are in process to offer
different personalized products & services by establishing JBL own Exchange Houses in
different Countries like UK, USA, Malaysia, Singapore, Italy, Spain, Australia, Japan, etc. To

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serve the NRBs in the best possible manner, Jamuna Bank Limited has deployed NRB
community consultants in Exchange Houses around the globe. They encourage potential
customers to use legal channels to remit their money to the loved ones as well as to invest their
savings in the productive sectors.
JBL have wide range of Correspondent Banking Network & Remittance drawing arrangement
with different International reputed Money Transfer Companies & Exchange Houses throughout
the world to facilitate Bangladesh bound Remittance Globally. JBL value JBL’s customers to
provide prompt & efficient services offering best competitive price for their hard-earning
Foreign Currencies.
3.5 SME Banking
SME means Small and Medium Enterprises. Small & Medium Enterprise (SME) plays a pivotal
role in the economic growth and development of a country. Actually, SME works as the platform
for job creation, income generation, and development of forward and backward industrial
linkages and fulfillment of local social needs. SMEs occupy a unique position in the economy of
Bangladesh. To keep these facts in mind JBL lunched several products for customers. These are:
1. Jamuna Bonik
SME clients are being involved in foreign trade, their network has been expanded throughout the
world. To facilitate the foreign trade transactions of the SME clients, Jamuna Bank is offering a
product named ‘Jamuna Bonik’.
2. Jamuna Chalantika
To operate business with extra ease, term loan is not always the only solution. Keeping this
capital requirement for your business, Jamuna Bank is offering a package of working capital
solution [50% term loan & 50% revolving credit (cash credit) facility] to run the business
smoothly.

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3. Jamuna Green
To save our beloved earth from the disaster of Green House Effect, Jamuna Bank is offering
ECO friendly product ‘Jamuna Green’. Under this product, one can get finance for ETP plants in
different sectors, Eco friendly vehicles, Eco friendly fields (reduce CO2 emission), Bio
Fertilizer, Bio gas plants, Solar plants and Eco friendly any other business. Mode of finance shall
be Term Loan mainly.
4. Jamuna Jantrik
When any SME client wants to puchase any machine or vehicle for business, Jamuna Bank is
there with the offer of ‘Jamuna Jantrik’ thorugh which the client can get a lease finance facility.
5. Jamuna Nari Uddogh
About fifty percent of our total population is women and many of them have succeeded as a
business entrepreneur. To give incomparable ladies some extra ease and to help them to get
financial freedom, Jamuna Bank Ltd. is offering a product ‘Jamuna Nari Uddogh’.
6. Jamuna NGO Shohojogi
From the very beginning, one of the goals of Jamuna Bank Ltd. is to provide services to the
under privileged people of remote areas. Keeping that idea in mind, the Jamuna Bank Ltd. has
come forward with a product for SME customers named ‘Jamuna NGO Shohojogi’. ‘Jamuna
NGO Shohojogi’ ensures wholesale financing through the reputed NGOs in the country whose
past records are remarkable, repayment behaviors are satisfactory, growth rates are significant
and above all loan monitoring & recoveries are above 95%.

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7. Jamuna Shachchondo
Who does not want a easy life? For the financial ease in business, Jamuna Bank is offering
‘Jamuna Shachchondo’ product through which one can enjoy both overdraft and term loan
facilities.
8. Jamuna Swabolombi
As an entrepreneur, definitely one needs working capital to run your business smoothly. To get
this working capital without Collateral Jamuna Bank Ltd. has ‘Jamuna Swabolombi’ – Collateral
free Term Loan in its basket. Just come with proper documents & get it.
3.6 International Banking
3.6.1 Corresponding Banking:
Jamuna bank is maintaining correspondent banking relationship with 234 international Bank
around 100 Countries in 818 different strategic locations worldwide to ensure the best &
steadfast trade services. Presently we have 23 Nostro Accounts in different Major Currencies like
USD, GBP, EURO, JPY, CHF, SAR, CAD & ACU Dollar with Various World reputed Bank.
As they have wider Correspondent Network with sustainable Credit limit & good relationship
globally, we can provide the following Services smoothly:
 L/C Advising
 L/C Confirmation
 Bank Guarantee
 Hajj Guarantee
 Purchasing/Discounting/Negotiating of export bills
 Off Shore Banking Services
 Trade payment settlement
 Cash Letter Services
 Foreign Remittance

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3.6.2 SWIFT services:
Jamuna Bank Limited is the member of SWIFT (Society for Worldwide Inter-bank Financial
Telecommunication). SWIFT is a member owned co-operative, which provides a fast and
accurate communication network for financial transactions such as Letters of Credit, Fund
transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for
uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.
3.6.3 Trade Finance:
International Trade forms the major business activity undertaken by Jamuna Bank Ltd. The Bank
with its worldwide correspondent network and close relationships with key financial institutions
provides an extensive trade services network to handle your transactions efficiently. Our key
branches throughout the country and Offshore Banking Unit (OBU) are staffed by personnel
experienced in International Trade Finance. These offices are the focal point for processing
import and Export transactions for both small and large corporate customers. We offer a
complete range of Trade Finance services. Our professionals will work with you to develop
solutions tailored to meet your requirements, through mobilizing our full range of trade services
locally, and drawing on our global resources. We can offer you professional advice on all aspects
of International Trade requirements, namely:
 Issuing, advising and confirming of Documentary Credits.
 Pre-shipment and post-shipment finance.
 Negotiation and purchase of Export Bills.
 Discounting of Bills of Exchange.
 Collection of Bills.
 Foreign Currency Dealing etc.
3.6.4 Offshore Banking:
An Offshore banking Unit (OBU) of a Bank is a deemed foreign branch of the parent bank
located within Bangladesh, and shall undertake International Banking business involving foreign
currency denominated assets & liabilities. An offshore bank is simply a bank based in a

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jurisdiction outside of your country of residence. Accordingly, Jamuna Bank Limited has started
its OBU operation on 22nd April 2010 having following objectives:
 To widen and diversify JBL’s area of services to the foreign investors as they do not have
the opportunity of availing credit facilities from different Financial Instittution in
Bangladedsh.
 To diversify the sources of foreign exchange earnings by increasing export of Bangladesh
throgh the EPZs.
 To encourage and foster establishment and development of industries and commercial
enterprises in EPZs in order to wider and strengthen the economic base of Bangladesh.
Jamuna Bank Limited offers the following range of Offshore Banking Services:
 Foreign Currency Deposites( Non Resident entitles and NRBs)
 Loan in Foreign Currencies
 Credit Facilities including Trade Financing
 Negotiation/Purchase of Export Bills
 Discounting of Export Bills
 Corporate Treasury Services.
 Competitive interest rates
 Easy international transfers
 Fee free accounts
3.7 Online Banking
Jamuna Bank Limited has introduced real-time any branch banking on April 05, 2005. Now,
customers can withdraw and deposit money from any of its Branches. Their valued
customers can also enjoy 24 hours banking service through ATM card from any of Q-
cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra. All the existing
customers of Jamuna Bank Limited will enjoy this service by default.

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3.8 Q-Cash Round The Clock Banking
Jamuna Bank Q-Cash ATIM Card enables the costumers to withdraw- cash variety of banking
transactions 24 hours a day. Q-Cash ATMs are conveniently located covering major
shopping centers, business and residential areas in Dhaka and chittagong. ATMs in Sylhet,
Khulna and other cities will soon start be introduced. The network will expand to cover the
whole country within a short span of time.

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4.1 Introduction
All business concerns to earn a profit through selling either a product or service. A bank does not
produce any tangible product to sell but does offer a variety of financial services to its customers.
General banking is the starting point of all the banking operations. It is the development, which
provides day to day services to the customers. Every day it receives deposits from the customers
and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issue
bank drafts and pay orders etc. Since bank is confined to provide the service every day, general
banking is also known as “Retail Banking”. The JBL offers various types of general banking
components. They are very essential tools for the bank to serve the customers. To attract new
customers the bank has to launch new components or re-furnished their existing products.
4.2 Functions of General Banking
4.2.1 Account Opening Section
A Person is treated as a customer when he or she opens an account on that bank. Then it becomes
a contractual banker customer relationship. The account opening section of any commercial bank
is a very important section because; the more customers open bank account the more customers’
base creates. This section takes care of all the relevant duties related to the opening of an
account. There are different types of account facilities provided by a commercial bank. For
example, saving Account, Current Account, Fixed Deposit Receipt, Short Term Deposit
Account, Cash Credit Account.
4.2.1.1 Procedure of Opening of an Account:
Banker’s his to maintain some common principles and procedures for open all most all deposit
accounts. Major information is essential for identification of the account holders individually so
that banker can discharge his obligations to everyone correctly and to the extent due. It is said
that, there is no banker customer relationship if there is no A/C of person in that bank. By
opening a banker and customer create a contractual relationship. However, selection of customer
for opening an account is very crucial of a bank.

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The following instruction to be followed while opening account: -
 Introduction of Account to be obtained from a respectable client acceptable to bank.
 The introduction shall be obtained in writing in the respective column of Account opening
form.
 For opening savings bank account of individual either singly or jointly, passports and identity
cards may be accepted for introduction, but subsequently proper introduction may be
obtained.
 Introduction of Current Account by members of the staff may be allowed but shall be
discouraged as far as possible.

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 Current Account shall preferably be introduced by another Current Account holder
acceptable to bank.
 Introduction of Account holder of other branch may be accepted with caution. In that case the
introducer’s signature must be verified by authorized officer of that branch and authenticated
by a forwarding letter.
 Photographs of account holder must be attested by the introducer.
 Letter of thanks be issued to introducer in Bank’s standard specimen.
4.2.1.2 Current Deposit Account
 A Current Deposit Account may be opened by individual, firm, company and club,
association, body corporate etc.
 Funds in the Current Deposit Account is payable on demand.
 No interest is payable on balances of Current Deposit Accounts.
 Current Deposit Account may be opened with a minimum initial balance of Tk.5,000/-
 Minimum balance to be maintained in the account is Tk.1,000/-
 Customer willing to open Current Deposit Account shall fill up the Account Opening
Form (AOF) applicable to him/ her and Specimen Signature Card (SS Card). The customer will
sign in the space provided under “Yours faithfully” and on the specimen signature cards.
 In case of proprietorship and partnership firms the relevant account opening form is to be
filled in and signed by the proprietor/ partner in their individual capacity in the space provided
under “Yours faithfully” and on the specimen signature card in their official capacity.
 In all other cases including companies etc. the persons opening the account shall fill in
the relevant Account Opening Form and sign the Form in the space provided under “Yours
faithfully” and in the specimen Signature Card in their official capacity.
 Introduction of acceptable clients to be obtained as per guidelines.
 The Manager’s approval for opening account shall be obtained by the concerned staff
member.
 Signatures of the account holder shall be admitted by affixing the stamp “Signature
admitted” and signing by the authorized officer. The introducer’s signature shall be verified by
affixing the stamp “Signature verified” near the signature by authorized officer.

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 Blank space of the Specimen Signature Card should be closed by drawing parallel lines.
 The particulars of the Account Opening Form shall be entered in the Account Opened
and Closed Register as per sequence provided by the computer system.
 The customer shall be provided with Deposit Slip in corporating the Account Number
and be advised to make the initial deposit in the account. The amount of initial deposit shall be
entered in the Account Opening Form.
 Cheque Book shall be issued on request on completion of all formalities including initial
deposit. Cheque series to be entered in the Account Opening Form at the bottom right and
authenticated by authorized officer.
 After posting of all particulars of the account including cheque series, one authorized
officer shall check/ verify the same in the computer screen and record it in the form with
signature.
 Manager/ Authorized Officer shall apply sufficient intelligence and common sense to
ascertain genuineness of the account holder. No account shall be opened without approval of
the Manager.
 Clear instruction regarding operation of the account shall be noted on the Account
Opening Form and Specimen Signature Card especially in respect of death of inability of the
account holders, or the person operating the account. The account holder shall confirm the
instructions under specimen signature.
 An indemnity shall be obtained from the customer if he/ she signs in language other than
English/ Bengali.
 Illiterate persons shall be discouraged to open Current Account. If opened withdrawal
shall be allowed on personal appearance of the account holder.
 The account opening form shall be sent to the respective computer terminal for posting
and S.S. Card shall be retained serially in the S.S. Card Box under custody of Cheque Passing
Officer.
 One of the photographs of the Account Holder is to be pasted with AOF and another one
with S.S. Card. AOF to be retained in serial order in Pasting File.
 A letter of thanks to be sent to the account holder as well as to the introducer.
 All new accounts opened during the day shall be personally checked by the Manager at
the close of business of each day.

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 Checking officer shall particularly see the introduction, initial deposit in cash or cheque,
nature of business of the account holder, Trade License, Partnership Deed/ Memorandum of
Articles of Association, Resolution etc.
 Similar Accounts should be noted in the AOF and care should be taken while making
posting of transactions in such accounts.
 The Computer Program used by bank shall provide reference of clients. Branch Manager
must ensure that their computer system provides reference of client.
 Classified Deposit Ownership Program to be maintained in the Computer System for
facilitating periodical returns to Bangladesh Bank.
 Bank shall provide monthly statement of account to clients as per computer system of the
branch.
 If minimum balance of the account falls below Tk.1,000/- once during the half-year,
incidental charge will be recovered as per Head Office Circular.
 Bank at its discretion may close any account with prior notice to the account holder.
 In case of closure of account by the account holder, branch shall recover closing charges
as per schedule of charges.
4.2.1.3 Bank Deposit Account
 Savings Bank Account may be opened in the name of adult individual who are mentally
sound and also jointly in the names of two or more persons payable to either or both or all of
them or to the survivor or survivors.
 Savings Bank Account may be opened in the name of a minor also.
 Saving Bank Account may be opened in the names of clubs, societies, association and
similar institutions and even by government and semi-government offices.
 Account shall be opened with at-least a minimum initial deposit of Tk.2,000/-.
 Interest at the rates fixed by Head Office from time to time is applied half-yearly on the
balances held on daily product basis.

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 Not more than one account is allowed to be opened in the same name. But this will not be
applicable to parents willing to open more than one account in his/ her name in respect of each
minor child.
 Savings Bank Account shall not be allowed to be overdrawn under any circumstances.
 Account opening formalities like Current Account should be followed.
 Savings Bank Account should not be allowed to be operated like Current Account
 Not more than 25% of the balance can be withdrawn without 7 days notice. Withdrawals
in the account shall be allowed twice in a week.
 No interest shall be paid to such accounts in the month for violation of the above rules.
 Bank shall provide monthly-computerized statement of accounts to account holders
instead of passbook.
 Bank may at its discretion close any account with prior notice for repeated return of
cheques due to insufficient balance.
 Bank may recover charges up to a maximum of Tk.100/- per instances of cheque return.
4.2.1.4 Short Term Deposit Account (STD)
Deposits held in this account are payable on short notice. Normally corporate bodies, bank and
financial organizations invest their funds temporarily. Now-a-days, private individuals having
sound financial means also open this type of deposit accounts. The following rules shall apply:
 Deposits held in STD Account are payable in 7 (Seven) days notice.
 Cheque books may be issued to account holders for withdrawal of funds.
 Repeated withdrawal without notice shall be discouraged.
 Interest is payable on balance held on daily product basis as per computer program used by
bank.
 For opening STD Account, AOF used for Current Deposit Account shall be used.
 Other formalities are similar to Current Deposit Accounts.
 Minimum balance requirement for accruing interest is Tk.100,000 (Taka one lac) only.

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4.2.1.5 Fixed Deposit Account
 Fixed Deposit is neither transferable nor negotiable.
 Fixed Deposit Account may be opened by individuals, firms, companies, corporate body etc.
 Fixed Deposit Account shall be opened for a fixed period ranging from 3 months to 36 months
or above as determined by Head Office from time to time.
 Rate of interest payable to Fixed Deposit Accounts shall be approved/ advised by Head Office
from time to time.
 Interest on deposits shall normally be payable on maturity along with principal.
 Customers may however, have the option of withdrawing interest accrued after every six
months provided that the account is for more than 24 months period.
 Interest ceases to accrue on overdue Fixed Deposit Account. Branch may, however, allow
interest to exceptionally valued clients on deserving cases with concurrence of Head Office.
 FDR may be encased before maturity on written request of the depositor. For payment of
interest, branch shall follow Head Office instruction in this regard from time to time.
 In case of FDR in joint names, written consent of all holders shall be obtained before
premature encashment, irrespective of instruction provided for operation of the account.
 Duplicate FDR may be issued in case of loss of FDR reported by the holder. An indemnity
bond executed by the depositor(s) shall be obtained on Bank’s standard form. A remark
“DUPLICATE ISSUED IN LIEU OF ORIGINAL REPORTED LOST” is to be typed on top
of the duplicate FDR. The original number should be used and comments to this effect be
recorded in AOF, S.S. Card and FD Issue Register.
 Extra care shall be taken in case duplicate FDR is proposed for lien to any bank.
 Each FDR of the same depositor will be treated as separate contract.
 Account Opening Form for Fixed Deposit Account contains relevant columns for mentioning
all terms including rate and term of deposit and operational instruction. The bottom part of the
form shall be used as credit voucher for the deposit. Specimen Signature Card duly signed by
the depositor to be obtained with clear instruction for operation of the account.
 Nominee form may be obtained if the depositor desires to nominate any body to receive the
proceeds of his account in case of his death. Nominee’s Signature and one copy of photograph
duly attested by the depositor to be obtained.

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 The signature of the depositor is to be admitted by authorized officer both in AOF and S.S.
Card.
 Particulars of the account shall be entered in the FD Account Opening Register and a control
number be allotted in computer sequence order with oblique against the printed number of
FDR. The complete number shall be quoted/ mentioned in all references.
 On completion of all formalities, including deposit of fund, FDR shall be issued and signed by
two authorized officers. The FDR shall be delivered to depositor against acknowledgement on
the reverse of the counter foil.
 The AOF will be retained in file and the S.S. Card shall be kept in S.S. Card Box under
custody of the concerned authorized officer.
 The particulars of the account shall be posted in the computer system on completion of all
formalities including receipt of deposit. One authorized officer shall check/ verify the
particulars in the computer screen and record his comments on the AOF to this effect with
signature.
 Renewal of Fixed Deposit Account shall be allowed on written request of the depositor, if no
intimation is received, the account shall be deemed to have renewed under the existing terms
and conditions automatically.
 FDR can be accepted as security against credit facility.
 Offer of special interest rate on deposits is subject to Head Office approval.
4.2.1.6 Documentation
The following documents duly completed shall be obtained from the customer at the time of
opening different types of accounts as applicable:
1. Individual/ joint.
Account opening form as applicable duly filled in.
Specimen Signature Card.
Two photographs duly attested by introducer.
Nominee Form (if nomination given by the account holder).
Mandate or Authority Form (if a third person is authorized to operate the
account).

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2. Proprietorship Firm
Account Opening Form.
Copy of Trade License
Two photographs duly attested by introducer.
Proprietorship Rubber Stamp against all signatures of the proprietor.
3. Partnership Concern
Copy of Trade License
Partnerships Deed
Two photographs of each partner duly attested by introducer.
Partnership Rubber Stamp against all signatures of partners operating the
accounts.
Partnership letter.
4. Private Limited Company.
Copy of Trade License.
Copy of Memorandum and Articles of Association duly attested by the Managing
Director/ Chairman of the Co.
Certificate of Incorporation.
List of Director as per return of Joint Stock Company with signature.
Resolution of the Board for opening account with the bank.
Photographs of each of the authorized signatories.

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5. Public Limited Company
Copy of Trade License.
Photograph of Directors and account operators other than Director.
Certified copy of Memorandum and Articles of Association.
Certificate of commencement of business.
List of Directors as per returns of Joint Stock Company with their signature.
Resolution of the Board for opening account with the Bank.
Certification of incorporation.
6. Clubs/ Association/ Society etc. (Non-Trading Concerns)
Account opening Form for current account or SB accounts.
Certified copy of Bye laws/ constitution of the organization.
List of the Executives of Managing Committee with their signature and present
and permanent address.
Resolution of the Committee for opening account with the bank.
2 Photographs of each operator of the account.
7. Corporation/ Autonomous Bodies/ Govt. Organization
Account Opening Form as applicable.
Copy of the Act or Ordinance Showing authority to open account.
Letter from the authorized persons in absence of the Board.
8. Account of Constituted Attorney
Account Opening Form (As applicable)
Specimen Signature Card
Power of Attorney

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A copy of Power of Attorney shall be taken and entered in the Power of Attorney Register in
serial order. The serial number is to be noted along with Banks name on the Power of Attorney.
Original may be returned and the copy to be attached with Account Opening Form.
4.2.2 Issuing Cheque Book
A. Issue of fresh cheque book
Fresh cheque book is issued to the account holder only against requisition on the prescribed
requisition slip attached with the cheque book issued earlier, after proper verification of the
signature of the account holder personally or to his duly authorized representative against proper
acknowledgment.

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Procedure of issuance of a fresh cheque:
 A customer who opened a new a/c initially deposits minimum required money in the account.
 The account opening from is sent for issuance of a cheque book.
 Respected officer first draws a cheque book
 Officer than scaled it with branch name.
 In-Charge officer enters the number of the cheque book in cheque issue register.
 Officer also enters the customer’s name and the account number in the same register.
 Account number is then writes down on the face of the cheque book and on every leaf of the
cheque book including requisition slip.
 There is a special technique to sign every leaf of the cheque book with the help of carbon
paper. So officer’s signature prints the reverse side of the leaf.
 The name of the customer is also written down on the face of the cheque book and on the
requisition slip.
 The word “Issued on” along with the date of issuance is written down on the requisition.
 Number of cheque book and date of issuance is also written on the application from.
 Next, the customer is asked to sign in the cheque book issue register.
 Then the respected officer signs on the face of the requisition slip put his initial in the
register and hand over the cheque to the customer.
B. Issue of New Cheque Book (For old Account)
All the procedure for issuing a new cheque book for old account is same as the procedure of new
account. Only difference is those customers have to submit the requisition slip of the old cheque
book with date, signature and his/her address. Computer posting is than give to the requisition
slip to know the position of account and to how many leaf/leaves still not used. The number of
new cheque book is entered on the back of the old requisition slip and is signed by the officer.

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C. Procedure of issuance of a new cheque book:
 If the cheque is handed over to any other person then the account holder the bank
addressing the account holder with details of cheque book issues an
acknowledgement slip. This acknowledgement slip must be signed by the account
holder and returned to the bank. Otherwise the bank will not honor any cheque from
this cheque book.
 At the end of the day all the requisition slips and application forms are sent to the
computer section to give entry to these new cheque.
 Then cutting the cheque book issuing) charge.
4.2.3Transfer of an Account
 The account submits an application mentioning the name of the branch to which he
wants the account to be transferred.
 His signature cards, advice of new account and all relevant documents are sent to
that branch through registered post.
 The balance standing at credit in customer’s account is sent to the other branch
through Inter Branch Credit Advice (IBCA)
 No exchange should be charged on such transfer.
 Attention is also given in this connection.
4.2.4 Closing the Account
Upon the request of a customer, an account can be closed. After receiving an application from
the customer to close an account, the following procedure is followed by a banker. The customer
should be asked to draw the final cheque for the amount standing to the credit of his a/c less the
amount of closing and other incidental charges and surrender the unused cheque leaves. The a/c
should be debited for the account closing charges etc. and an authorized officer of the bank
should destroy unused cheque leaves.

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In case of joint a/c, the application for closing the should be signed by all the joint holders.
A banker can also close the account of his customer or stop the operation of the account under
following considerable circumstances:
 Death of Customer.
 Customer’s insanity and insolvency.
 Order of the court (Garnishee order)
 Specific charge for fraud forgery.
4.2.5 Cash section
4.2.5.1Receipt and Payment of cash
Among the services provided by the bank, cash receipt and payment is the most vital and
physical function. Generally customer comes to bank to withdraw the money from their account
and deposit his savings in their accounts.
4.2.5.2 Cash Deposit
Money deposited in cash by the constituents at the cash counter of the bank excluding that of
government transaction is known as Bank Receipt (Cash). Different types of forms are used for
cash deposits for different types of accounts. Particulars of some forms are furnished below:
 Current or Savings account pay in slip
 Application for fixed deposit receipt
 Credit voucher
 Draft or mail transfer application form
 T.T. Pay order application form Call deposit application form
 Demand loan pays in slip.

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4.2.5.3 Cash Payments
Banks payment includes all kinds of payments excluding those of treasury section. Extreme
precautions must be taken at all levels through, which instruments like cheque, drafts, etc, are
disposed of. All the instruments received at the general banking counter will be preliminary
checked by the dealing officer who will enter the instruments in the respective ledger. In case of
cheque the following particulars will be scrutinized.
 Date (Whether post dated or anti dated)
 Amount in word and figure
 Crossed or Open
 Bearer or Order
 Style of signature as available in the ledger
 Prohibitory order or stop payment of checks.
The Cash officer will follow the following procedures at the time of payments of checks/other
instruments over the cash counter.
1. The client will submit the instruments in the computer department first. The computer officer
and cheque passing authorized officer will verify the instrument and posted the instruments.
Then it will be send to the cash counter.
2. After getting the instrument the cash officer will verify the instruments and if necessary the
cash officer can tell the clients to sign in the backside of the instruments.
3. The officer will enter the check in the cash payments register where the denomination of
notes and coins will also be recorded.
4. The cash officer will give the amount to the clients at the cash counter and told the clients to
count it immediately and if needed any quarry.
5. All checks, drafts, debit vouchers etc. must be branded with “Cash Paid” stamp with the
current date.
6. After payment the cash department for the purpose of clean cash book will send the
vouchers.
7. The head of the cash department is responsible for all debit vouchers being branded with the
cash Paid date stamp immediately they are paid and the manager must supervise him/her in
this matter as any laxity is extremely dangerous.

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4.2.6 Account Section
This is the most confidential department of a bank. Recording all kinds of transactions of the
branch, confirming their accuracy and preparing statements are the main job of this department.
Now a day under computerized banking system, the jobs of accounts department become very easy.
Now the computer directly prepares the clean cash statement on party ledger vouchers. The
function of the accounts department can be divided into two parts:
a) Daily function
b) Periodical functions
Daily functions:
The routine daily tasks of the accounts departments are as follows:
 Record the daily transactions in the cash book.
 Record the daily transactions in general and subsidiary ledger.
 Prepare the daily position of the branch comprising of deposit and cash.
 Prepare the daily statement of affairs showing all the assets and liability of the branch as
per ledger and subsidiary ledger separately.
 Pay all expenditure on behalf of the branch.
 Make salary statement and pay salary.
 Checking whether all the vouchers are correctly passed to ensure the conformity with
the `Activity Report'; if otherwise making it correct by calling the respective official to
rectify the voucher.
 Records inter branch fund transfer and providing accounting treatment in this regard.
Periodical Tasks:
 The routine periodical tasked performed by the department are as follows:
 Prepare the monthly salary statements for the employees.
 Publish the basic data of the branch.
 Prepare the weekly position for the branch, which is sent to the Head Office to maintain
Cash Reserve Requirement.
 Prepare the monthly position for the branch, which is sent to the Head Office to maintain

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Account Section
IBTA General Section
liquidity requirement.
 Prepare the weekly position for the branch comprising of the breakup of sector wise deposit,
credit etc.
 Preparing the budget for the branch by fixing the target regarding profit and deposit so as to
take necessary steps to generate and mobilize deposit.
JAMUNA bank instead of recording transactions in a journal initially, these are directly recorded
and posted in the ledger separating debit and credit by slip and voucher system. Records of all
the transactions of every department are kept here as well with other respective branch.
Inter-branch transaction
(IBTA) happens when one client of a branch places cheques or DD to his branch (which is not
branch which it is drawn) or if there comes TT or the branch sends TT, then there arises
arrangement of negotiation between the collecting branch and paying branch. The cheque will be
debited on the ledger book by particular amount of the cheque.
The information that is included on the IBTA register is as follows:
 Credit Amount
 Balance
 Initial of the concerned officer
 Remarks
 Particulars
 Advice No
 Date
 Debit Amount

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General Section
Various types of vouchers come to this section from several departments (such as Deposit
Department, Remittance Department, Loans and Advances Department). At first, there happens
register entry then these goes for computer positing. One of the most important tasks that are
performed by this section is to inform the daily deposit position, bills payable and total loans &
advances to the Head Office. At the opening of the working day’s transaction this information
(previous working day’s) must be to the particular department of Head Office.
System of Accounting
The following ledgers are maintained and statements are prepared in the Accounts Departments-
i. Transfer Book
ii. Supplementary
iii. Clean Cash Book
iv. General Ledger
v. Subsidiary Ledger
a. Income Ledger
b. Expenditure Ledger
c. Sundry Asset Ledger
d. Sundry Deposit Ledger
e. Suspense A/C. Ledger
vi. Voucher Register
vii. Balance Book
viii. Daily Statement of Affairs
ix. Daily Position Statement
x. Weekly Position
xi. Provisional Income &
Expenditure Statement
xii. Accounts Monthly Statement
xiii. Salary Statement
xiv. Half-yearly Statement
xv. Annual Closing Balance
xvi. Statement of Reconciliation
Preparation of Supplementary Sheet: Instead of Day Book supplementary sheet is used after
transfer is completed, all the vouchers are sorted amount head wise. Credit vouchers under
specific head are grouped together; similarly all the debit vouchers are grouped. Separate
supplementary sheet for each group is made keeping the keeping the figures under the head of
Cash, Clearing and Transfer column. Then the sheet is totaled and the number of vouchers is
written on the supplementary sheet. Supplementary sheet should be recorded very carefully and
correctly otherwise accounts will not coincide with the cash received, cash payment, cash
transferred and clearing.

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Accounting workflow in branch
Transaction
ClearingCash Transfer
Voucher
Recording in register
Posting in Ledger
Supplementary Sheet Preparation
Summary Preparation
Cash-cum Day Book
General Ledger Posting
Affairs Front Page
Subsidiary Accounts Posting
Affairs Back Page
Abstract
Balance
Tally with

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4.2.7 Local Remittance section
Due to the rapid expansion and complication of business world and increasing competition
business activities are now in broader scope. For this financial transaction also goes in boundless
arena. In this case Bank is the only concern, which helps the business world to complete these
complicated transactions.
Commercial banks in Bangladesh offer the facility of transferring funds, from one place to
another, to their customers as well as to the general public. Such transfer of funds can be affected
either through Demand Draft of Telegraphic Transfer or Mail Transfer. The aforesaid methods of
remitting money from one place to another within the country are known as Remittance. While,
it is for outside Bangladesh the same is called foreign remittance. The advantage of this facility
is the quick transfer of money with minimum cost and also the risk of physical transportation of
cost is criminated. Remittances are sent to one place from other places through D.D, P.O, and
T.T etc.
4.2.7.1 Demand Draft (DD)
Demand draft is a written order of one branch upon another branch of the same bank, to pay a
certain some of money to or to the order of a specified person. Drafts are not issued payable to
bearer. In practice drafts are not to be drawn between branches within the same city. Drafts
drawn by one branch of bank on another payable to order where any draft that is an order to pay
money drawn by one on a bank upon another office to the same bank for a sum of money
payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is
discharged by payment in due course. From the above provisions as to Crossing, Endorsement,
Collection and Payment in due course are the same as for checks:
4.2.7.2 Telegraphic Transfer (TT)
TT is affected by tile bank through tested message attested by secret check signal, on receipt of
which tile paying officer pay the amount to the payee in cash through a telegraphic payment
order or credit his account, as the case may be. Both parties must have account in Jamuna Bank
Limited, as money is transferred.

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4.2.7.3 Payment Order (PO)
The PO is used for making a remittance to the local creditors. The procedures for selling a
PO are as follows:
 Deposit money by the customer along with application form.
 Give necessary entry in the Bills Payable register where Payee’ name, address, date, PO
no: amount is mentioned.
 Prepared the instrument.
 After scrutinized and approved the instrument by authority, it is delivered to customer.
 Signature of customer is taken on the counterpart and register customer’s signature part.
Commission Charge
Amount in Taka Rate of Commission in Taka
Up to 10,000/- 15/= + 3.00
10,001/= to 1,00,000 25/= + 4.00
1,00,001/= to 5,00,000/- 40/= + 6.00
5,00,001/= To Above 50/= + 8.00
4.2.8 Clearing Section:
Clearing is one of the most magical parts of modern banking. Now days, the banking activities is
boundless. Most of the banks are linked with other banks due to interbank transactions. Clearing
is the only process by which these transactions are settled.
Clearing House is a centralized and computerized system for settling indebtedness between its
member banks. Clearing House enables the member banks to offset claims against one another
for checks and orders paid into banks other than those upon which they were drawn of the
clearing house, Bangladesh Bank, Dhaka.
Nature of clearing house
1st
Clearing House
Outward Clearing
Return Clearing House
Inward Clearing

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4.2.8.1 Types of Clearing:
There are two types clearing
I. Outward Clearing
II. Inward Clearing
 Outward Clearing:
When a particular branch receives instructions drawn on the bank within the clearing zone and
sends those instructions for collection through the clearing arrangement is considered in outward
clearing for that particular branch. This branch is known as collecting branch.
 Inward Clearing:
When a particular branch receives instructions, which are on themselves and sent by other
member banks for collection are treated as inward clearing of that branch.
Types of Returns: There are two types Returns
I. Outward Returns
II. Inward Clearing
 Outward Returns:
Clearing returns (outward) include those cheques that were presented to us by other banks but
the bank has to return them unpaid to the collecting banks due to various reasons.
 Outward Returns:
Clearing returns (inward) consists of those instruments which were presented by us to other
banks for payment but have been returned and unpaid by them due to specified reason through
the clearing house.

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Cheques drawn on another branch of JBL. The settlement process:
Cheque drawn on another bank, which is situated within clearing house area.
4.2.9 Dispatch Section
Those documents that are enter in the branch or exit of the branch must go through this section.
The main objective of this section is;
 Keeping record of the documents send to other branches or bank.
 Letters are sending to their respective destination.
Cheques are directly sent to the respective branch.
OBC received along the instrument by the respective branch.
Entry passed in OBC register of that branch
IBCA is sent from that branch to this branch. .
When IBCA comes customer’s account is credited
Cheque are collected by Particular Br.
IBDA along with bills are sent to Principal Br.
These bills are sent to clearing house from principal Br.
If drawer’s Bank honors the bill then.
Depositor’s account is credited with JBL Sonargang Road Br

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 Send these documents safely and correctly.
 Receives documents come through different medium, such as postal service, courier
service, via messenger etc.
 Dispatch section of Shantinagar Branch performs another duty. It enters the transfer
instruments in the scroll book and then sends those to the computer section.
Two types of letters are continuously received. These are:
I. Inward (Registered/Unregistered) letter.
II. Outward (Registered/Unregistered) letter.
At first recording is required whether it is Inward or Outward Registered/Unregistered letters.
Then letters are disbursed to their respective destination. Inward letters are firstly segmented
according to their different sections and after that an entry is given to the Inward Register book.
Books Maintained
 Local Dispatch Khata (including Peon Book)
 Register Dispatch Khata (For Registered letter).
 Ordinary Register Khata (For Unregistered letter).
 Inward Register Books.
 Outward Register Books.

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5.1 Introduction
Commercial banks collect money from one group of people as deposits and distribute them
within the other group of customers as loans and advances and it is the most important function
of commercial bank. By this way the bank earns profit.
As a private commercial Bank JBL has some inherent commitment to the society. It provides
loans and advances to the customer, which can gear up the economy actively. Commercial and
Industrial loans to business concerns use to finance their day-to-day activities, to finance their
longer term needs and for other business purposes. The maturities of these loan 1 to10 years or
longer. JBL has been extending credit facilities to the potential, productive and sector as per
Bangladesh Bank instructions. Good loans are profit-earning asset to the Bank. A big portion of
opening income is generated from sound lending.
Bank cannot lend its fund fully. As per Banking Company Act 1991 every banking company has
to maintain a specified minimum (presently 16%) of the total of its demand and time liabilities in
form of cash and approved securities with Bangladesh Bank. So, Jamuna Bank Limited has to
carefully invest in loan/advances to get maximum performance from the investment.
5.2 Credit Facilities
 The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade
and industrial activities through an effective delivery system.
 Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having
productive purpose.
 The loan portfolio of the Bank encompasses a wide range of credit programs.
 Credit is also offered to major thrust sectors, as earmarked by the govt., at a reduced
interest rate to develop frontier industries.
 Credit facilities are offered to individuals including housewives, businessmen, small and
big business houses, traders, manufactures, corporate bodies, etc.
 Loan is provided to the rural people for agricultural production and other off-farm
activities.
 Loan pricing system is customer friendly.

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 Prime customers enjoy prime rate in lending and other services.
 Quick appreciation, appraisal, decision and disbursement are ensured.
 Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank of
Bangladesh) and operational procedures of the Bank.
Interest Rates of Loans & Advances
5.3 Important Things in Lending
5.3.1 Documentation:
Documentation is a written statement of facts of proof or evidence arising out of particular
transaction that on placement may bind the parties there to answerable & liable to the court of
law for sanction of the charge in question. In this connection, bank for the purpose of security
take some charge document from the borrower.
Common Compulsory Documents
 A letter of acceptance about the terms & conditions laid down in sanction
Type of Lending Interest Rate
Agriculture 13%
Consumer Credit & Retail Portfolio 18%
Credit to Non-Bank Financial Institution 16%
Export Financing 7%
Housing Loan 16.5%
Lease Finance 17%
Overdraft against FDR/ Scheme by JBL or other bank 15.5%
SME 18%
Term loan to Large & Medium Scale Industry 16%
Term loan to Small Scale Industry 16%
Trade/ Commercial Financing 16.5%
Working Capital to Large & Medium Scale Industry 16.5%
Working Capital to Small Scale Industry 16.5%

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 Promissory note (depending on the type of the borrower)
 Letter of arrangement
5.3.2 Selection of a Borrower
Selection of a borrower is a vital step for lending. Due to the asymmetric information and moral
hazards, banks have to suffer a lot due to the classified loans and advances, which weakens the
financial soundness of the bank. If the selection of borrower is correct, as borrower’s character,
capital and capacity or of reliability, resourceful and, responsibility, the bank can easily get
return from the lending. Moreover, monitoring made easier for the banker. Jamuna Bank follows
the given procedures:
A. Borrower Analysis
Borrower Analysis is done from the angle of 3C (Character, Capital, Capacity) or 3R
(Reliability, Resourcefulness, Responsibility). The human skill, conceptual skill and operational
skill is qualitatively analyzed.
B. Business Analysis
Business Analysis is done from two angles, which are terms and conditions and collateral
securities.
C. Lending Authority
All approval of credit facilities must be conveyed under dual signature. Ideally both the
signatories must have the required lending authority .Two lending officer of the required lending
authority are not available, one of the signatory must have the lending authority. The Jamuna
Bank Limited Lending authority or authorized person or officers re as follows:
1. Managing Director
2. Deputy Managing Director
3. Executive Vice President
4. Senior Vice President

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5. Senior Assistant Vice President
6. Vice President
7. Assistant Vice President
Irrespective of outstanding amount, the banks have to submit credit information of all of then-
account of loans and advances to the CIB of BB.
5.4 Credit risk management of JBL
5.4.1 Credit Rating Report of JBL

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5.4.2 Preparation/Processing of Credit Proposals
Credit proposals shall be prepared in the approved format of the bank (Annexure- 1)
enclosing/furnishing documents/papers/information:
01. Pre-sanction Inspection Report containing DYC (Annexure-2).
02. Request for Credit limit of customers (Annexure-3).
03. Project Profile/profile of Business.
04. Copy of Trade license duly attested.
05. Copy of TIN Certificate.
06. Certified copy Memorandum and Articles of Association Certificate of Incorporation
Certificate of Commencement of Business Resolution of Board of Director Partnership Deed
(sheer applicable).
07. Personal Net worth Statement of the Owner /Director /Partner /Proprietor in Banks format
(Annexure-4).
08. Valuation Certificate in Banks format along with photograph of collateral security with detail
particulars on the back duly authenticated by the Branch Manager (Annexure-5).
09. Three years Balance Sheet and Profit and Loss A/C.
10. Credit Risk Grading for credit facilities irrespective of amount other than Consumer loan and
SME loan covered under consumer and SME guidelines.
11. Credit Report from other Banks.
12. Indent/Performa Invoice/Quotation (where applicable).
13. Price Verification Report (where applicable).
14. Statement of A/C (CD/SB/CC) for the last twelve (12) months. In case the customer
maintaining account with other Bank. Statement of Account for the last twelve (12) months
of the concerned Bank should be furnished.
15. In case of L/C proposal derailed performance of L/C during the last year i.e. No... and date of
L/C opened commodity L/C value Date of creation of PAD date of retirement mode of
retirement etc.
16. Justification/consideration for the facility.

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Organizational Structure for Credit Operation
BOARD
EC
MD
DMD
Corporate
Division
General Credit
Dept
SME Dept.
Trade Finance
Dept
Leasing Dept
Syndication &
Structured
Finance dept
Internal Audit Credit Division
CRM Dept
Recovery & Legal
Dept
Credit
Administration
Division

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Branch wise Structure
5.4.3 Credit Risk Assessment
A thorough credit risk assessment should be conducted prior to the sanctioning of credit
facilities. Thereafter it should be done annually for each relationship. The result of this
assessment shall be presented in the credit proposal originated from the relationship manager
(presently branch).
The Relationship Manager (Presently Head of Branch) should be the owner of the customer
relationship and must ensure the accuracy of the entire credit proposal submitted for approval.
Relationship Manager must be familiar with Bank’s Lending guidelines
And should conduct due diligence on the borrower, principals and Money Laundering Guideline
be adhered to.
Follow risk areas in the credit proposal should be addressed and assessed before sending to head
office.
1. Borrower Analysis:
Share holding
Reputation
Education
Experience-success history
Net worth
Age etc.

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2. Industry Risk
Industry position/ threat/prospect.
Risk factors pertaining to the industry
Borrower’s position/ share in the industry.
Strength, weakness of the borrower compared to the competitors etc.
3. Supplier Buyer risk Analysis
Concentration on single/ few buyer/ supplier are addressed. Demand supply position
4. Demand supply position
Concentration on single/ few buyer/ supplier are addressed. Demand supply position
5. Technical feasibilities/ infrastructural facilities
6. Management teams competence
7. Seasonality of demand
8. Debt-equity ratio
9. Historical financial analysis
An analysis of three years historical financial statements.
Earning-its sustainability
Cash flow
Leverage
Profitability
Strength and reliability of balance sheet etc.
10. Projected financials
Sufficiency of cash flows to service debt repayment.
Debt service coverage ratio
11. Trade checking
12. Account conduct
For existing customer the repayment histories, credit turnover, study of account statement.
13. If the customer is proposed to be migrated from other bank, statement of account from
present banker is required.
14. Allied deposit with the bank
15. Other business with the bank
16. Pricing-effective rate of return, return on investment.
18. Security.
19. Succession issue.

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20. Margin, volatility of business, high debt( Leverage/ Gearing), over stocking, huge
receivables with long aging, rapid expansion, new business line, management change, lack of
transparency should be addressed. .
21. Environmental factor.
22. Employment generation and contribution to the national economy
5.4.4 Credit Monitoring
I. Computer generated list of exceptional advance to be obtained from the Branches on daily
basis which shall be examined at major exception be brought to the knowledge of Senior
Management.
II. Credit Administration Unit, Head Office shall bring the list of documentation shortfall/
deficiencies to the knowledge of Senior Management at regular basis and corrective
measure shall be taken.
III. Credit turnover in cash credit and overdraft accounts, past dues, collateral shortfall,
covenant Branch shall be reviewed on a regular basis.
IV. Recurring transactions are not allowed for one time transaction/limit.
V. Credit limit expiry date diary shall be maintained and followed-up.
VI. Use of Loan money shall be monitored through analysis of financial statement.
VII. Borrower shall be communicated ahead of time as and when installments are due.
VIII. Nonpayment and late payment of installment shall be communicated to the Senior
Management.
IX. CIB Report from Bangladesh Bank is obtained and reviewed on a periodic basis.
X. Timely renewal of limit shall be ensured information Branches two months ahead of expiry
dates.

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5.4.5 Credit Risk Management Unit
The credit risk management unit shall perform interlayer the following duties
a) Assess risks inherent in the credit proposal sent by corporate division and also evaluate
proposed facility pricing based on risks, security, structuring and conditions to suit the
business condition and to protect bank’s interest.
b) Compliance to the existing rules and regulations of the bank and all regulatory authorities
and laws of the country and to advice the corporate division for rectification, if required.
c) Advice the corporate division about changes, if required, in the structure and terms and
conditions of the proposed facility.
d) Process credit proposal for approval of the competent authority.
e) Issues sanction advice for credit facilities or decline.
f) Maintain limit sanction register.
g) Handover loan to the credit monitoring and recovery unit as and when it is degraded to
Special monitor or bellow:

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6.1 Introduction
International trade shapes our everyday lives and the world we live in. Nearly every time we
make a purchase we are participating in the global economy. International trade is the system by
which countries exchange goods and services. Countries trade with each other to obtain things
that are better quality, less expensive or simply different from what is produced at home.
To buy foreign goods or services, or to invest in other countries, companies and individuals may
need to first buy the currency of the country with which they are doing business. Generally,
exporters prefer to be paid in their country’s currency or in U.S. dollars, which are accepted all to
the world.
The procedures used to exchange currency in international trade are called foreign exchange
system, banks plays vital roles in this procedures world widely. The Bangladeshi banks provide
foreign exchange services under, Foreign Exchange Act, 1947 is for dealing in foreign exchange
business, and Import and Export Control Act, and 1950 is for Documentary Credits. JBL has also
become a member of SWIFT (Society For Worldwide Inter Bank Financial Telecommunication)
in 2002, which provides a fast, secured & accurate communication network for financial
transactions such as letter of credit, fund transfer etc. As an authorized dealer under regulations
of BB, JBL provides the followings three type services under their foreign exchange department.
Foreign Exchange
Depertment
Import Services
Remittance
Services
Export Services

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6.2 Foreign Currency Accounts offered by JBL
Following the liberalization of exchange controls Bangladesh Bank has authorized the banks to
maintain different types of foreign currency accounts and convertible Taka accounts. The
following are the regulations laid down by Bangladesh in respect of these accounts.
Branches of Jamuna Bank Limited may open Foreign Currency Accounts in the names of:
A. Bangladesh nationals residing abroad
B. Foreign nationals residing abroad or Bangladesh and foreign firms operating
in Bangladesh or abroad,
C. Foreign missions and their expatriate employees.
This is a foreign currency denominated account. Those who domicile in Bangladesh, but have to
remit money to abroad because of various reasons.
Non Resident Foreign Currency Deposit (NFCD):
This is a foreign currency denominated account. Those who doesn’t domicile in Bangladesh, but
have to remit money to Bangladesh because of various reasons.
Requirements for opening RFCD Account:
 Two copies of recent passport size photograph
 Photocopy of passport
 Photocopy of work permit
 Salary certificate or employers certificate
For the Officers of Different Embassy they need not to submit all these documents but the
Employers certificate is must.
Requirements for opening NFCD Account:
 Photocopy of passport
 Citizenship certificate if available
 Certificate or approval from our authority for exporting manpower
 A nominee or authorized person will be selected by the account holder for transactions.
 Under this account the nominee will receive local currency TK against any Foreign
Currency.

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6.3 Import Section of JBL:
As an authorized dealer the major import items financed by Jamuna Bank Limited, are capital
machinery, Hot Roll Steel, electronic equipment, rice, wheat, seeds, polyolefin, cement clinkers,
dyes, chemicals, raw cotton, garments accessories, fabrics, cotton etc. To import, a person should
be competent to be an ‘importer’. According to Import and Export (Control) Act, 1950, the
officer of Chief Controller of Import and Export provides the registration (IRC) to the importer.
After obtaining this, the person has to secure a letter of credit authorization (LCA) from
Bangladesh Bank. And then a person becomes a qualified importer. He requests or instructs the
opening bank to open an L/C.
6.3.1 Import procedures:
1. Registration with CCI & E
1. For engaging in international trade, every trader must be first registered with the Chief
Controller or Import and Export.
2. By paying specified registration fees and submitting necessary papers to the CCI & E. the
trader will get IRC (Import Registration Certificate). After obtaining IRC, the person is
eligible to import.
2. Purchase Contract between importers and exporter:
1. Now the importer has to contact with the seller outside the country to obtain the Performa
invoice/indent, which describes goods.
2. Indent is got through indenters a local agent of the sellers.
3. After the importer accept the preformed invoice, he makes a purchase contract with the
exporter declaring the terms and conditions of the import.
4. Import procedure differs with different means of payment. In most cases import payment
is made by the documentary letter of credit (L/C) in our country.
3. Collection of LCA form:
Then the importer collects and Letter of Credit Authorization (LCA) from JBL authorized
Branches.
4. Opening a Letter of Credit (L/C)
Bank provides guarantee to importer and exporter through Letter of Credit. Thus the contract
between importer and exporter is given a legal shape by the banker by its ‘Letter of Credit’. The
process of opening L/C regarding to import through JBL, nominated branches are as following:
A. Interview of probable L/C opener:
At first in case of import L/C opening opener must give an oral interview to the responsible
officers of JBL. If the officer is satisfied with opener’s motive of import, type of import goods,

Total Banking System of Jamuna Bank Limited

Total Banking System of Jamuna Bank Limited

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