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An internship is an agreement between a student and a company or organization for a fixed period
of time, such as a semester or quarter. A student agrees to work for them and they agree to mentor and
teach the student; internships can offer valuable insight into a particular field or career. Internship is
process to gain practical knowledge about some theoretical lesson. It is the application of knowledge,
which a candidate has gathered by academic subjects. And thus it helps to better decision making.
Professor Schneider joined the University of Cincinnati in 1903 and began immediately to
solicit the interest of the faculty and industrial leaders in the merits of cooperative education.
Schneider was convinced of the efficacy of this concept after studying case records of Lehigh
University graduates, indicating that those who showed marked engineering ability had worked while
attending college.
The concept of internship was introduced in University of Rajshahi with the introduction of
Business Faculty. From then internship is an academic requirement for all the students of MBA.
Generally this internship program varies from 15 days to 3 months.
The following list of program objectives has been extensively reported in literature
discussing internship programs. The College of Business subscribes to the following objectives but
does not expect each student to achieve every objective. Many of the program objectives will only be
important to a few students, but each student should achieve a substantial portion of those listed:
Table-1: Objectives of Internship
1. Internships will provide students the opportunity to test their interest in a particular
career before permanent commitments are made.
2. Internship students will develop skills in the application of theory to practical work
situations.
3. Internships will provide students the opportunity to test their aptitude for a particular
career before permanent commitments are made.
4. Internship students will develop skills and techniques directly applicable to their
careers.
8. Internship students will be prepared to enter into full-time employment in their area
of specialization upon post graduation.
9. Internship students will acquire good work habits.
10. Internship students will develop employment records/references that will enhance
employment opportunities.
11. Internships will provide students with an in-depth knowledge of the formal functional
activities of a participating organization.
12. Internships will provide students the opportunity to understand informal
organizational interrelationships.
13. Internship programs will enhance advancement possibilities of graduates.
15. Internship programs will increase student earning potential upon graduation.
1. Professionals in the sponsoring organization have access to new concepts and ideas through the
intern.
2. The sponsor has a chance to assess the intern without making a long-term commitment.
3. The internship can help employers do needed projects.
1. Provides an opportunity for the university to relate academic training to job requirements.
2. Uses many community facilities and resources for educational purposes making it possible for the
university to provide education in fields that it could not otherwise serve.
3. Enables the university to keep abreast of developments in the business and industrial world.
4. Provides a direct avenue through which the university can meet community needs. Benefits to the
Community
1.4 METHODOLOGY
Both primary and secondary information has been collected for the purpose of this report.
The primary sources of information:
Face to face conversation with the bank officers.
Face to face conversation with the clients.
Exposure on different desk of the bank.
File study.
The secondary sources of information:
Annual report of RAKUB.
Profile of RAKUB.
Periodicals published by Bangladesh Bank.
Different publications on banking functions, foreign exchange operation and credit policies.
Previous internship reports Prospectus of RAKUB.
We know that practical training is essential to acquire a complete knowledge. But practical
knowledge is not easy to obtain. There are many limitations of internship. These are as follows:
At present Bank such lifeblood of economy and importance of the Bank is unlimited. That economy
and trade are turned to concentrate it. Bank does not only help for giving loan, even helps various
financial transactions. As a result the importance of banking activates to increase day by day.
Bangladesh economy reliant on agriculture and consider the mainstay of economic life of the people.
Most of people of our country are depending upon agriculture directly and indirectly. Development of
this country depends upon the development of agriculture, because Major portion of National Income
comes from agriculture. But the financial conditions of the farmer of our country are not satisfactory
and their purchasing power of agricultures materials is very low. Most of the farmers live under
poverty line. They could not get seeds, fertilizers, modern technology of cultivation and irrigation in
proper time. In case, Rajshahi krishi Unnayan Bank provides to supply their needed.
2.1 INTRODUCTION
Rajshahi Krishi Unnayan bank is a specialized bank and the largest sources of agricultural credit in
Rajshahi division. It was established by the president s order no. 58 of 1986.The main function of the
bank was started on 15 th March in 1987.At that time RAKUB took over the whole operations of
Bangladesh Krishi bank (BKB) within the administrative division of Rajshahi along with its assets
and liabilities.
The north-west region of our country is the driest and poorest area with a high population
density and low rate of urbanization (13%). The north west-region consists of 16 districts of entire
Rajshahi administrative division with an area of 34513 sq. km. and estimated population of 2705
million. The populations of this area are to be suffered poverty from various degrees of deprivation.
To overcome those problems and improve the condition of the poor, RAKUB supply
agricultural credit, the bank extends its credit facilities for employment and income generating
agrobased industrial and commercial activities. RAKUB is playing a vital role both in agricultural
and industrial developments as well as eradication of poverty.
establish the Rin Shalishi Board for the greater interest of the farmers, as a result many farmers
who were engaged with the oppression of the moneylenders and landlords, breathed with peace. That
is why, the people at that time recollected Sher-E-Bangla as Haque shaheb.
ii) Pakistan period:
In 1947, the Indian was separated from the British rule and in Indian sub-continent two independent
countries were originated namely India and Pakistan. Our Bangladesh was indicated as East Pakistan
as a part of Pakistan. After that time the Pakistan Govt. recognized a financial institution by the name
of Agricultural Development Finance Corporation (ADFC) to disburse loan is agricultural sectors is
1952. In 1957 then the Pakistan Govt. established another financial institutions namely Pakistan
Krishi Bank feeling the agro-production and the importance of agro-loan. This institution started its
function from 1958.
Bangladesh freed through the Great liberation war is 16 December 1971. After liberation period The
Pakistan Krishi Unnayan Bank was re-named as Bangladesh Krishi Unnayan Bank. After this,
the classification of this bank was made as the Bangladesh Krishi Bank with the ordinance number
27 of the president 1973.Various organizations are working independently after achieving freedom.
As a result, the consciousness of people is increasing than before liberation period. The creation of
Water Development Board, Bangladesh Rice Research Institute , Rural Electrification Board
and other necessary institutions are made. Control of flood, rice of new quality and introduction of
other crops and the increment of its demand, the increment of demand of people towards the
institutional credit a specially SACP or as result of circulating a special credit program amounting to
Tk.. 1 core etc. have influenced many farmers to be bank oriented. It becomes very difficult for some
limited bank to meet up the multiple demand of loan specially crop-loan. Since Bangladesh is an
agro-based country, the demand for the loan of Krishi Bank has increased remarkably. It becomes
very difficult for a Dhaka based head office of Krishi Bank to manage agro-loan in the remote areas
of the country. For this reason, then the Govt. felt to decentralize the Krishi Bank in the divisional
areas. The people of the North-west areas of Bangladesh are lagging behind in all respects than other
parts of the country. For this reason, Rajshahi Krishi Unnayan Bank was established in 1986 with the
ordinance number 58 of the president. RAKUB started its functioning from 15 March, 1987.
As the largest development partner in the northwest region Rajshahi Krishi Unnayan
Bank aims at overall development of farmers and all the sectors and subsectors of agriculture in this
region. Besides, catering to agricultural credit the bank performs ancil lary functions as financing
agri-business and agro-based industries and poverty alleviation programs.
2.5 MANAGEMENT
A seven-member Board of Directors is entrusted with the responsibility of policy formulation for
attainment of growth in agriculture leading to economic development of the country through
agricultural credit support. The government appoints all the directors of the board. An executive
committee constituted of the Chairman and two other directors including the Managing Director is
there for taking emergency decisions. The managing Director is the chief executive of the bank.
2.6 CAPITAL
The head office is stationed at divisional headquarters city of Rajshahi . The branches network of
the bank comprises 367(Rural-306, Urban-61) branches including one in Dhaka. Eighteen zonal
offices stationed in district headquarters control branches under them. The General Manager's office
at Rangpur oversees activities of 9 zones of greater Rangpur, Dinajpur districts. There are 18
independent regional audit offices for conducting regular audit in branches and zonal offices. The
only training institute of the bank is situated at Rajshahi. There are 3309 employees (29.12.2011) of
the bank of which 2046 are officers and 1263 other staffs.
01. Rajshahi 25
02. Naogaon 28
03. Natore 21
04. Chapai Nawabgonj 16
05. Bogra (North) 20
06. Bogra (South) 14
07. Pabna 24
08. Jaipurhat 15
09. Rangpur 27
10. Gaibandha 24
11. Nilphamari 20
12. Kurrigram 21
13. Lalmonirhat 17
14. Dinajpur (North) 17
15. Dinajpur (South) 18
17. Thakurgoan 18
18. Panchagarh 18
19. Dhaka 1
20. L.P.O (Rajshahi) 1
21 Sirajgonj 22
Total 367
The board is vested with the responsibility of formulation of policy in line with
attainment of growth in agriculture and economic development of the region through agricultural
credit support. The board of directors is constituted by seven members, all appointed by the
government. Besides, for emergency decisions there is an executive committee constituted of the
chairman of the board and two other members: the managing director and one of the directors elected
by the board. The managing director is the chief executive of the bank.
Table-3: Regulatory Body
Secretary A B Siddque
Source: www.rakub.org.bd
3.1 LOCATION
Rajshahi Branch of RAKUB Rajshahi district is started its operation 15 March, 1987 at
Ghoramara, Rajshahi the branch caters the need of agricultural credit alleviation program and at the
same time reforms commercial banking function in its geographical area.
Rajshahi Branch of Rajshahi Krishi Unnayn Bank started its operation in 15 March, 1987 as
a Rajshahi branch, in Rajshahi. It is located at eastern side of Rajshahi in sonadighimore Rajshahi. It
is an ideal branch of head office.
To assist farmers in adopting appropriate technologies under the bank's supervision that means
helping in modernize the agricultural sector.
8. No of village 125
02 Principal officer 01 01 0
03 Senior officer 05 05 0
04 Officer 07 07 0
05 Supervisor 02 02 0
06 Supervisor(Cash) 02 02 0
07 Computer operator 01 01 0
09 Peon 01 01
10 Security Guard 01 1 0
Total 23 23 00
4.1 INTRODUCTION
The main function of a bank is collect deposit from public or organizations and to give
among them. RAKUB of Rajshahi Branch, Rajshahi also performs General banking includes deposit
service, local currency remittance and other related functions, which are discussed in this chapter.
4.2 FUND OF RAKUB
The above services of RAKUBs Rajshahi branch are discussed in following pages respectively;
4.3.1 Deposit Services:
The bank gives importance to accumulation of rural small savings through its branches.
RAKUB renders all sorts of deposit banking services to its over one million valued customers. The
bank operates deposit accounts like Savings Bank Accounts, Current Deposit Accounts, and Short
Term Deposit Accounts & Fixed Deposit Accounts.
Exhibit 3:
Deposits
2. Savings Account:
Savings account opened for the individual customers except companies, firm and Co-operative
society. Money is withdrawn two times a week and deposited at any time in the office hours. If an
account holder draws money from account he/she will not get interest for that month. To open an
account bank requires Tk.200 only.
3. Term deposits:
a. Short Term Deposit Account (STD):
Short Term Deposit Accounts are opened for company, business firms and government
demonstrative body. This account is operated like current account.
It is one kind of deposit program circulated by government. In this savings scheme a person
receives the opportunity to build up saving by contributing monthly installment to get an attractive
fixed amount at the end of a specific period. The size of monthly installments is Tk. 100, Tk. 200,
Tk. 300, Tk. 400, Tk. 500, or which is to be deposited within the first week of each month. In this
case compound rate of interest is charged.
2 Savings Account 7%
The following types of commercial service are available in RAKUB s Rajshahi branch
a. Demand Draft (DD):
DD is the most popular instrument of remitting fund. It is an order to pay money drawn by one
branch Payable to another branch on demand. DD is issued in against at 0.10% (minimum Tk.30
plus vat 15%). When the limit exceed commission amount increased in a certain rate.
It is a written document. This PO can be encased on that branch from where it is issued.
Several supplier organizations use this PO and here no account is needed to open with bank. It is
issued locally.
Exhibit 4:
Customer Services at a glance provided by Rajshahi Branch
DD
MT
TT
Money transfer
PO
Western union
money transfer
Advice
Same Bank
Customer Customercheck
services collection
Other Bank
Electricity Bills
Telephone Bills
Table 9: Commission charged on commercial service
Payment Order
Up to Tk.1000 Tk.20+VAT
Up to Tk.1,00,000 Tk.30+VAT
Up to Tk.500 Tk.25+VAT
Banks loan portfolio has been classified under the following heads;
a) Short Term Loan (STL): Loan period is 1 year.
Rajshahi Krishi Unnayan Bank, Rajshahi branch extends credit in sectors and sub sectors,
which are as follows:
03 Poultry Poultry boiler farms, Poultry hatchery, Poultry feed and allied
project.
04 Mixed farming Dairy live stock and Fishery based horticulture crops; Agriculture
based poultry dairy and fishery project.
05 Black Bengal goat Black Bengal goats, Sheep & Cattle farming for quality meat
production production, and Meat processing and Marketing.
07 Agro based industries Commercially profitable sweet water fish and Shrimp feed
production, Ice plant, Ice-cream factory and so on.
08 Agro-equipment Engineering work shop for Agro-equipment, Repairing agro
production equipment and Marketing.
10 Export processing Fish freezing plant, Fish dehydration plant, Leather processing
and manufacturing Leather products.
11 Animal and fish feed Poultry and Fish feed meal production, Cattle, Goat, and Lamb
meal production feed meal production.
Bank determines the interest rate differently for different sector. Considering interest rate on
deposit, administrative cost, bank rate, interest rate at others bank and financial institutions,
competitive money market etc, the banks use its rate of interest on loan.
Table-11: Rate of interest in different sectors.
02 Fisheries 12%
03 Export credit 7%
08 SECP 15%
(ii) At the event of death of either or any of the accounts holders how the balance will be paid and to
whom the securities will be devolved. The documentary requirements are almost a like the individual
accounts. Account opening form and the special instruction must be signed by all the joint account
holders to signify their consent.
Things considered to open an account are:
Proper fill up of the application form. Getting an specimen signature of a customer Taking
initial deposit in cash.
Basically a person whose age is 18 years or more is competent to open an account with the
bank. But there are some special types of account holder like joint account, minor account, illiterate
person account, blind person account, Deaf and dumb account etc. The following parties can never
open an account with the bank-
In order to close an account (some time before maturity in case of FDR) the holder has to
place a written application to the bank. After receiving the application the bank will deduct service
charge at an amount necessary for the respective account as closing fee from the balance and rest of
the money is given to the account holder.
The relationship between bank and his customer is a contractual one and may be terminated
by either of them. Bank closes an account in the following situations;
There are the following types of account holder in RAKUB Rajshahi branch:
I. Individual Account II.
Joint Account
III. Non Business Firm IV.
Business Firms.
Banker and customer are is a contractual relationship provided and account is opened with
the bank. A person is considered competent when his or her age is eighteen (18) old years or more to
open of an account with the RAKUB. Besides these, there are some special types of account holders
in Rajshahi branch who are listed below: i. Minor:
A minor with the RAKUB can open an account, but he or she cannot operate his or her account. The
minor will have a guardian who will operate the minor s account. In this account money can be
deposited only and it cannot be withdraw until the minor reaches his or her 18 years old. ii. Illiterate
persons:
Persons who are illiterate can open accounts in the bank but no cheque is supplied to them. They will
have to put thumb mark in front of the manager and they are given loose cheque to withdraw money.
iii. Blind persons:
Persons who are blind can open account in the bank and the procedure is same as the illiterate
persons. In both the cases, the terms and conditions of opening accounts are to read out in front of
them. If they agree with it, the accounts are opened.
iv. Pardanashin Women:
A pardanashin woman can open an account with the RAKUB but she has to agree with the statement
that she must be ready to put signature in front of the manager to judge the similarity between her
putted signature and the specimen signature at the time of with drawing money. v. Dumb and Deaf:
The dumb and the deaf can account with the bank but the banker should be cautious about the
background and the character of the said persons.
The under mentioned three persons can never open account with the RAKUB.
In this section I gathered practical experience about how a check is honored and how cash
is paid. The formalities involved in honorees of a check and cash payment are given below: The
formalities involved in honorees of a check and cash payment are given below-
COUNTER
Customer places the check to the ledger officer (LO). The LO receives the check, enters its
particulars in a register and issues the customer a token.
CHECK CANCELLATION
Once the check is cancelled that is Okayed for payment it Is brought to the cashier by a peon.
DRAWING MONEY
Cashier enters the amount of the check in the cash register and pays the appropriate amount to the
customer.
Customers deposits are received in this section of bank. Then the amount received is
credited to the customers A/C in the ledger book. The formalities that are followed to receive a
customers deposit (cash) in the cash receipt section are stated in the following flow chart-
Customer places this cash and deposit slip before the respective officer at
the counter.
After receiving the cash and deposit slip, the officer makes an entry to scroll register book. Then the
deposit slip and cash are placed before cashier.
The cashier counts this amount of money first and then makes an entry to another register book. The
book is generally called cashbook.
Then the cashier passes the cashbook and deposit slip to the second officer.
After verifying the deposit slip, the second officer returns the counter-folio of the deposit slip to the
customer and keeps the other position in his custody.
At the end of banking hour, trial balance is prepared from that cash receipt register.
I. If the customers account position is not okay, that is if the amount of money mentioned in the check
is greater than customers deposit.
II. If the check is torn.
III. If the check is post dated or a stolen checks.
IV. If the customers signature given on the check is a forged one or does not tally with his specimen
signature kept in bank custody.
V. If the check is not submitted to the customer within banking hour. VI. If the duration of issuing
the check is more than 6 months. VII. Others.
Cash Scroll:
At first those transactions are maintained in this cash scroll by the authorized officer, which occurred
every day. There after the, cashier maintained those transactions in daily transaction register.
Clean Cash:
When the vouchers are closed, the accounts are written in the pure cashbooks. It may be either
deposit or expense. The transactions of each head, which have occurred, are written in the specific
page of the cashbook under a specific head and debit and credit total are determined. There after, total
of every head is written in the right page of the clean cashbooks. But this is the cashbook, the closing
balance of the previous day is shown as an initial balance for the next day then the closing balance is
determined for that day.
General Ledger:
General Ledger is the heart of a Bank. The balance of clean cash is recorded in this Ledger head
wise.
General Ledger Abstract:
The debit balance of various accounts makes General Ledger Abstract. The debit and credit balance
of the accounts are maintained in the Abstract in the debit and credit side respectively. Since the
double entry system is maintained, therefore its debit and credit are equal.
The main objectives of maintaining the accounting procedure of RAKUB, Rajshahi branch are
to achieve in following goals:
It presents the immediate accounting figure of the Bank at any time and it includes
Cash Scroll Book
Clean Cash Book
General Ledger
General Ledger Abstract
Supplementary Ledger Book B) Subsidiary Book:
Issue of Demand Notice: Demand notice is issued to the borrower before one month being due of
outstanding loan or installment.
Legal Notice: If the borrower does not repay their respective loan and interest after maturity, being
received the demand notice registered with acknowledgement by post to the borrower, then the bank
should send legal notice to him.
Special Notice: Beside the above two notice a special notice with the signature of DC, UNO is sent to
the respective borrower to keep mental pressure on him for repaying the loan.
Field Recovery: Loan officer recover the loan through I.O. receipt by visiting the spot and source of
the borrower.
Personal Communication: If the borrower fails to repay his loan installment, the loan officer
communicates with the respected persons of that area to give mental pressure to the borrower so that
he repays his respective loan.