Chapter-II: OVERVIEW OF JANATA BANK

History of Janata Bank Limited

Janata means people. This is a progressive Bank. Janata Bank Limited has been incorporated as a Public Limited Company on 21May 2007 vide certificate of incorporation # C 66933 (4425)/07. The bank has taken over the business of Janata Bank Emerged as a Nationalized Commercial Bank in 1972, Pursuant to Bangladesh Bank (Nationalization) Order No, 1972 (President Order No. 26 of 1972) on a going concern basis through a vendor agreement signed between the Ministry of finance of the Peoples Republic of Bangladesh on behalf of Janata Bank and the board of directors on behalf of Janata Bank Limited on 15 November 2007 with a retrospective effect from 1 July 2007. The Banks current shareholdings comprise Government of the Peoples Republic of Bangladesh and other 7 shareholders nominated by the Government. The Bank has eight hundred forty eight (848) branches including four (04) overseas branches and a 100% owned subsidiary Janata Exchange Company srl. Italy as of 31 December 2007.

Janata Bank Limited has an authorized capital of Tk. 800 crore (approx. US$ 116.79 million), paid up capital of Tk. 259.39 crore (approx. US$ 37.87 million) and reserve of Tk.292.67 crore (approx. US$ 42.73 million). The Bank has a total asset of Tk. 24406.11 crore (approx. US$ 3562.94 million) as on 31st December 2007.

The principal activities of the Bank are providing of all kinds of commercial banking services to its customers and the principal activities of its subsidiaries are to carry on the remittance business and to undertake and participate in any or all transaction, and operations commonly carried or undertaken by remittance and exchange houses.

Mission of Janata Bank Limited

The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners.

Objectives

The accounting policy comprises principles and basic assumptions, concepts, rules, practices, and procedures adopted by the Management for reporting the activities of the Bank and financial statements preparation and presentation. The purpose of accounting policy is to provide the necessary organizational and methodological directions in carrying the accounting activity of the Bank.