Académique Documents
Professionnel Documents
Culture Documents
on
Loans and Advances of Pubali Bank Limited
By
Sonjoy Kumar Ghosh
MBA Program 2004 (6th Batch)
Roll No. 327 (Sl No. 222)
Stream: Strategic & International Management
Supervisor
Mrs.Rubina Maleque
Associate Professor
Department of Management Studies
Faculty of Business Studies
University of Dhaka
Dated:15 February,2007
1
To
Mrs.Rubina Maleque
The Internship Supervisor
MBA Program
Department of Management Studies
University of Dhaka
Dear Sir/Madam,
I have the pleasure to submit an elaborate internship
report, one of the most important requirements for the
MBA program. I was assigned to work at Pubali Bank
Limited-Nawabpur Branch, where I have observed closely
& studied different practical aspects of the banking
institution. I would like to say has been a great
experienced for me to work in Pubali Bank Limited, which
enlarges my practical knowledge about banking
operations.
2
Thanking You.
Sincerely Yours
……………….
Sonjoy Kumar Ghosh
MBA Program (Major in SIM)
Roll No. 327, Serial no.222
Department of Management Studies
Faculty of Business Studies
University of Dhaka
Acknowledgement
3
Sonjoy Kumar Ghosh
MBA Program (Major in SIM)
Roll No. 327
Serial No.222
Faculty of Business Studies
Department of Management Studies
University of Dhaka.
Declaration
4
successfully completion of 3 months work in Pubali Bank
Limited, Nawabpur Branch, Dhaka.
5
Experience In Pubali Bank Limited As An Intern
6
I along with other 10 students go to the Pubali Bank Limited head office
situated at Motijheeel and reported to the Senior Officer of Pubali Bank
Limited. The Pubali Bank Limited authority cordially received us.
Then each of us was sent to the different branches of Pubali Bank Limited on
10th Octobor, 2006. I was placed in Pubali Bank Limited Nawabpur Branch
for field study from 10th Octobor ’06 to 10th January 2007. I reported to Mr.
Shym Sundar Banik, Managing Director of the said Branch and briefed
something about his branch and promised me to give any kind of information
needed. Then I have started to observe the activities held on that branch and I
have found the following major functions:
1. General Banking
Various types of deposit A/C, Transfer, Works of Cash Section, Subsidiary
Register Day Book, Clean Cash, General Ledger, Remittance (P/O, DD, MT,
TT) Bills Department, Clearing House, Pubali Bank Limited General A/C etc.
Concerned officers of the branch showed and discuss with me about General
Banking.
Concerned officers of the Investment Section of the Branch showed the
various files and discussed with me how to provide Loan to the Prospective
sector of the country.
7
Executive Summary
8
Banking . Third part consists of Organizational overview of Pubali
Bank Limited. Forth part deals with general banking. Fifth part
involves loans and advances. Sixth part involves papers to be
submitted to get a loan and finally seventh part consists conclusion
and recommendation.
Table of Contents
Particulars
Page No.
Letter of transmittal
Acknowledgement
Declaration
Experience as an Intern
Executive Summary
9
1.8Limitation of the study 6
10
4.9. Suspense and Sundry Deposit Account 39
4.10. Establishment 39
4.11. Dispatch Section 39
4.12. Local Short Credit
4.13.Short Credit 41
4.14.Demand Draft Received for Collect 42
4.15 Transfer Scroll
43
4.16 Clearing House
43
4.17 Clear Cash Book
44
4.18 The General Ledger
45
11
6.4. Credit Proposal & Approval Form 79
Bibliography
12
CHAPTER-1
13
CHAPTER-1
14
their existence. Under the above circumstances, it has become necessary for
Pubali Bank, a leading commercial bank, to focus its' attention towards the
improvement of the customer service through its' multi-purposeful activities.
That is why it is quite justified to make an in-depth study about its operation
and evaluate service provided by this bank and scope for its' improvement.
This is the exploratory study that evaluates the functions of Pubali Bank. The
study may help formulating policy regarding the ideas relating to the feelings
of the customers & bankers. Now it is hoped that it may have some
significance to Pubali Bank and those who want to develop Pubali Bank.
Since financial area is my preferred area to build up my career, this study will
vehemently help me to go forward and improve my career path.
15
1.4 Objective of the Study:
To analyze the financing system of the Bank to find out if the Bank has
any field to improve upon and to have greater contribution towards
country's economy.
While conducting the study, sources were explored for primary information
and data. But hardly any updated data could be found. In the absence of
updated information or data dependence on secondary data has been
inevitable. However, whenever possible primary data has been used. Data
were also collected by interviewing the responsible officers and from some
documents & statements printed by the Pubali Bank. Pubali Bank also helped
me in collecting data providing books and Bank’s annual report.
16
1.6 The flow chart of the Study
PLANNING
THE APPROACH
QUESTIONNAIRE
DEVELOMENT
-THE LITERATURE COMMUNICATING
REVIEW
-THEORIETICAL
CONSIDERATION
METHODOLOGY
SECONDARY SOURCES
PRIMARY SOURCES
a) Annual report
a) Official records of Pubali Bank b) Working papers
b) Face to face conversation c) Office files
d) Selected Books
e) Printed forms
COLLECTING INFORMATION
ANALYZING
SUBMISSION OF THE
REPORT
17
1.7 Sources of Data
The following sources have been used for the purpose of gathering and
collecting data as required.
Primary Data
a) Official records of Pubali Bank
b) Face to face conversion
Secondary Data
a) Annual report
b) Working papers
c) Office files
d) Selected Books
e) Printed forms
b) Since the Bank personnel are very busy with their activities, as a result
they failed to co-operate with me to complete this report.
c) The major limitation of the study was shorter time period. For an
analytical purpose, adequate time is required. But I was not given
adequate time to prepare such as in-depth study.
d) Such a study was carried out by me for the first time. So, in-experience
is one of the main factors that constituted the limitation of the study.
18
CHAPTER-2
19
CHAPTER-2
A BRIEF HISTORY OF BANKING
2.1. Introduction:
. A bank is one, who in the ordinary course of his business receives money,
which he repays by honoring cheques of persons from whom or on whose
account he receives it. Banks deal mainly with money and credit. They
purchase and sell money and credit.
Etymology deals with the roots and origin of the word ‘bank’. According to
some writers the word bank derived from the word BANCO, BANCUS,
BANQUE, and BANC, all of which mean bench upon which the early bankers
used to display their coins and transact business in the market place.
According to the some other writers the word ‘bank’ has been derived from
the German word ‘BANKE’ which means a joint stock fund. Banking in the
ancient times was largely confined to money changing and money lending.
20
2.3. Emergence of Modern Banking:
In middle Europe the bankers of Lombardy were very famous. They planted
the seed of modern banking in England. Among those prominent bankers we
can named one who were famous not only in banking but also in political
history in Europe. These Lombardy people were very much disturbed in 13’s
by internecine work that was followed by plunder by Kaiser Frederick two.
Lombardy people in large number as a result started migrating to more settled
countries such as England, French, and Belgium.
During Mughal period, indigenous banking flourished. The Subarna bank the
bullion trading community used to do banking in the then Bengal. At the
British time banking in the form of agency house, exchanging house started to
flourish in kolkata., especially in the wake of the swadeshi movement.
In 1947 after the separation of Bengal, bank business faced a severe disaster as
non-Muslim bankers migrated to India. In order to rebuild the bank business
State bank of Pakistan was established as a central bank of Pakistan in 1948.
In 1971 Bangladesh became independent. After liberation “Bangladesh bank
was automated with the asset and liabilities of former “State bank of
Pakistan”. There were several banks before independence of Bangladesh as
follows:
21
(9) The standard bank ltd.
(10) The Australasia bank ltd.
(11) The eastern mercantile bank ltd.
(12) The eastern banking corporation ltd.
22
CHAPTER-3
ORGANIZATIONAL OVERVIEW OF
PUBALI BANK LIMITED
23
CHAPTER-3
ORGANIZATIONAL OVERVIEW OF PUBALI BANK LIMITED
Welcome
PUBALI BANK LIMITED
is the largest
Commercial Bank in
Private Sector in
Bangladesh. It provides
mass banking services
to the customers
through its branch
network all over the
country. This Bank has
been playing a vital
role in socio-economic,
industrial and
agricultural
development as well as
in the overall economic
development of the
country since its
inception through
savings mobilization Head Office
and investment of
funds. During the last 5
years the growth rate
of bank's earnings is
more than 25% on
average.
The Bank was initially emerged in the Banking scenario of the then
East Pakistan as Eastern Mercantile Bank Limited at the initiative
of some Bangalee enterpreneurs in the year 1959 under Bank
Companies Act 1913 . After independence of Bangladesh in 1972
this Bank was nationalised as per policy of the Government and
renamed as Pubali Bank. Subsequently due to changed
circumstances this Bank was denationalized in the year 1983 as a
private bank and renamed as Pubali Bank Limited. The Government
of the People's Republic of Bangladesh handed over all assets and
24
liabilities of the Pubali Bank to the Pubali Bank Limited. Since then
Pubali Bank Limited has been rendering all sorts of Commercial
Banking services as the largest bank in private sector through its
branch network all over the country.
Share Capital:
The authorized capital and Paid up Capital of the Bank stood at Tk.5000.00
million and Tk.400.00 million respectively in 2005. Out of total 7591
Shareholders, 4 nationalized institutions including the Govt.of the People's
Republic of Bangladesh held shares of Tk. 11.72 million. The remaining
shares of Tk.388.28 million were held by various institutions and individuals.
During the previous year the statutory reserve and other reserve of the bank
stood at Tk.2107.76 million, out of which statutory reserve was Tk.1250.12
million, other reserve was Tk.857.64 million. During the year under review
the total reserve stood at Tk,2481.21 million at the end of the year due to
increase of general reserve by Tk.573.45 million from current year's profit.
Deposits:
The total deposit at the end of the previous year was Tk.
39789.70million.During the year under review the amount stood at Tk.
44443.03 million which was 11.69% higher than the position of the Previous
year.
The borrowing from other Bank, for the business purpose, was Tk.320.20
million as on 31.12.2005.Such borrowing during the previous year was
Tk.131.62 million.
25
Foreign Exchange Business:
Due to active participation in the inter Bank money market ,total earning from
call loan during the year amounted to Tk.429.28 million which was high by
Tk. 142.83 million over the amount of previous year.
a) Import business
During the year the bank handled import business worth Tk. 26033.80 million.
During the
previous year ,the amount was Tk. 18024.30 million.
b) Export business:
The Bank handled export business worth Tk. 15271.10 million during the
year as against Tk.13670.50million in the previous year.
Investments:
Total investment of the Bank was Tk. 5742.12 million during the previous
year. The sectors of investments were mainly Govt. Bonds , Treasury Bills,
Approved Debenures,Shares and Debentures of Private institutions.
Advances:
The total advances of the Bank during the previous year amounted to Tk.
27542.33 million which was Tk. 32639.68 million during the current year.
The Bank made advances mainly in sectors such as commercial loan, import
and export business, term loan to large and medium scale industries, house
building loan, consumer's credit loan.
26
Position of Profit and Loss:
The total income and total expenditure of the Bank during the year were
Tk.4435.90 million And Tk. 3063.27 million respectively resulting in a profit
of Tk. 1372.63 million before making provision for bad and doubtful debts
and income tax.
During the year under review 23 branches were shifted to new premises in
more suitable places and 19 branches were refurnished and modernized.
For providing quick customer service all the 350 branches of the bank
have been computerized including branches situated at the remote areas
like Sandwip,Mehidigonj etc. As a result , quick and better customer's
service is being possible with less manpower .Bank started to develop an
improved Multi user client server Architecture System Software called
Pubali Integrated Banking System(PIBS) enabling to provide one stop
service to its clients. The Bank entered in internet world through
introduction of its web-site www.pubalibangla .com as a result , the name
of pubali Bank ltd. included in world Electronic Database. To meet the
demand of time Pubali Bank Ltd. has entered into ATM World.
Audit& Inspection
Bank’s Audit Term audited 233 branches & offices during the year under
review while inspection of all the 350 branches was conducted by Bank’s
Inspection Team.
27
Meeting of the Board of Directors& its Committees
During the year 2005, 39 meetings of the Board of Directors were held. Policy
decisions on different issues were taken in these meeting.
Appointment of Auditors
M/s. Ahmed & Co., Chartered Accountants, M/s.Syful Alam & Co. Chartered
Accounts and M/s.K.M.Alam Khaleque & Co., Chartered Accounts were
appointed Auditors of the bank for 2005 in the 22nd Annual General Meeting.
But due to dissolution of M/.K>M.Alam Khaleque & co., the other 2(two)
Chartered Account firms audited the statement of accounts with Due
permission of Bangladesh Bank and Securities exchange Commission.
Conclusion
The Board of Directors expresses its gratitude to all Clients, Shareholders and
Partners for extending support and co-operation in the activities of the Bank
during the 2005.the Board of Directors thanks Government of the People’s
Republic of Bangladesh and Bangladesh bank for their co-operation and
guidance.
The Directors also wish to place on record the sincere appreciation and thanks
for the sincere and dedicated services and co-operation extended by the
officers and employees towards overall performance of the Bank during the
year under review.
28
3.3 Organizational Structure of Pubali bank limited:
29
3.4 Managerial Hierarchy of Pubali Bank Ltd:
Chairman
Board of Directors
Top Management
Executive Committee
Managing Director
Senior Officer
Junior Level Management Trainee Officer
Management
Junior Officer
30
3.5 Corporate Branches Of Pubali Bank Limited
31
Motijheel Sena Kallyan Motijheel 880 2
Bhaban 9551071 880
195, Motijheel 2
Comm. Area 9550635/110
Dhaka-1000 671431
Bangladesh PBMJL BJ
Principal 26, Dilkusha Motijheel 880 2
Commercial Area 9557323 880
Dhaka-1000 2 9552449
Bangladesh 880 2
9557323
671528
PBLLO BJ
3.6 HIGHLIGHTS
32
Source- Annual Report of Pubali Bank Limited 2005.
33
Source- Annual Report of Pubali Bank Limited 2005.
34
Source- Annual Report of Pubali Bank Limited 2005.
35
Source- Annual Report of Pubali Bank Limited 2005.
36
CHAPTER-4
37
CHAPTER-4
GENERAL BANKING
b) Date.
d) Special instruction.
f) Occupation.
g) Address.
a) Title of Accounts.
a) Verification of Signature.
38
Ledger: Ledger contains:
Partnership Deed.
Mandate contains:
For opening a company account some documents are needed which are given
below:
o Certificate of Incorporation in original along with a true copy.
39
This is not required when
i. The company is private limited company.
Mandate
40
Current Account
This deposit is primary for small-scale savers. The main object of this account
is promotion of thrift. Hence there is restriction on withdrawals in a month.
Heavy withdrawals are permitted only against prior notice.
Minimum amount of Tk. 200.00 is required as initial deposit.
Normally withdrawal not allowed more than 1/4th of the balance with
maximum of Tk. 1000/- in a week.
41
Payment demanded before expiry of agreed date then Penalty is
charged.
Interest Rate
42
4.3 Operation of Cheques:
The ledger keeper then debited the amount from respective account
in the ledger book and will pass to the authorized officer who
satisfies himself by verifying signature of the account holder very
carefully to protect any kind of fraudulence and then pass it to the
cash officer for payment.
The presenter presents his token in the counter and cashier makes
payment receiving the token after verifying the token given by the
receiving clerk and will demand a signature to verify with the
previous one.
The procedure discussed earlier is fully manual system which is totally absent
Nawabpur Branch. Because, the cash payment & receipt system are fully
43
computerized which faster the whole customer service. And as a result, now-a
day they are not maintaining their previous system and not keeping any ledger
book.
4.3.1 Stopped Cheques
• The stopped cheques register will be kept by the manager or the
accountant.
44
• All savings accounts which have not been operated upon for
one year should also be marked in Red ink.
• Annually on the 29th June, the balances of all accounts, which have
lying in in-operative current account for ten years, should be
transferred to the unclaimed deposit A/C.
A banker can close the account of his customer or justices the stoppage of the
operation of the Account under following considerable circumstances: -
• Notice given by the customer himself
• Death of customer
45
The Commercial Banks Remittance facilities to its customer is to enable them
to avoid risk arising out of theft or loss in carrying cash money from one place
to another or making payment to some one in another places. Banks take the
risk and ensure payment to the beneficiary in exchange of a little bit benefit
known as Exchange or Commission.
Considering the Urgency and nature of transaction, the mode of Bank
remittance may be categorized as: -
Demand Draft (DO)
46
Issuance of Demand Draft
While issuing demand Draft, an official must be confirmed about the existence
of the Bran where the DD is to be issued or drawn as asked for by the
applicant. Application on Banks prescribed form (F-117) for DD be obtained
from the applicant duly filled and signed by then. Thereafter, Applicant will be
asked to deposit the amount or DD and exchange Commission commuted
correctly at the prescribed rate. On receipt of cash voucher will be passed and
scrolled by the officers. DD will be issued and recorder to the DD issues
register filling the appropriate columns. Test number (if required) is affixed on
both DD and Advice as per instruction.
It is mentionable here that DD application is treated as Credit Voucher or SBG
A/C (IBT A/C) and reported to HO, Recon, Division showing credit entry
against contra Branch (paying Branch). For any amount of DD issued, a
relative DD Advice and sent to paying branch where the Advice converted
into Voucher.
The minimum exchange of demand drafts or Bank Drafts is Tk. 17/-
(including VAT Tk. 2/-) for the amount of Tk. 1 to Tk. 9000. After that that
exchange is charged Tk. 1.5 for each Tk. 1000/-.
Procedure of Payment
Proceeds of Demand Draft is received by the paying bank as and when it
responds the relative advise on the receipt of DD Advises from different
branches, the paying banker will verity the genuineness of the Advice by way
of verifying the number and signature. Beside this, Drafts payable can be
made without the Advice of issuing Bank and on that time the payment is
called Acceptance Payment. Total amount of advice will be debited to SBG
A/C and credited to Drafts payable A/C on production of Demand Draft by the
beneficiary payment will be made by Debit to the account credited earlier. If
the payment is to be made before receipt of the Advice, DD is paid being
recorded in Ex-Advice Register by Debiting the Drafts Payable Ex-Advice
A/C (DD paid without Advice). On receipt of the Advice, it will be entered
into DD/MT Advice Received Register or Draft Payable Register and the
amount will be credited to Drafts Payable A/C. DD paid without Advice as the
case may be.
47
Before making payment of the DD, the branch will ascertain the genuiness of
its issuance as well as the genuiness of the payee. Open Drafts may be paid on
proper identification of the payee and crossed Drafts can never be paid in cash
over the counter.
Cancellation of Draft
In some cases, the purchaser of the bank draft may ask the issuing branch to
return the amount of DD stating its non-requirement. In these cases, the
issuing Branch will obtain written application from the purchaser whose
signature must be tallied with the signature obtained earlier. An amount Tk.
25/- be recovered from the purchaser as cancellation charges and will be
Credited to the Commission A/C the purchaser will acknowledge receipt of
the proceeds writing the words received payment by cancellation and will
sign. On revenue stamp to be affixed on the revenue of the Draft. In this case,
payment is made by Debit to PBG A/C and a relative cancellation advice is
sent to the Issuing Branch.
48
Remittance or money by Mail Transfer is relatively cheaper, quite safer and
convenient. Mail Transfer is affected not only for remittances within the
country but also for international remittances. MT for local transfer (say,
within the area of Dhaka) a special MT register book is maintained as in the
case like DD. MT normally issued from branch to branch of the same Bank.
An extra document is needed for Mail Charge.
Normally the Mail is given Tk. 25/- for the amount Tk. 50,000/- and above.
Below 50,000/- there is no any Mail Charge. The commission charged for MT
is given below
Tk 1 up to Tk. 49,000/- Tk. 15/-
Tl. 50,000/- and above Tk. 40/-
Specimen Receipt (MT/TT)
Date: ......................
Payees Name: ................................................................
Branch Name: ...............................................................
Amount: ................................... Exchange...................
Commission: ........................ Postal Charge: ...............
49
4.8.4 Payment Order
Duplicate PO
50
Insurance of duplicate DD be noted against the entry of original one.
4.9 Suspense and Sundry Deposit A/C:
4.10 Establishment:
51
Book is to be maintained which contains only Dispatch No... and Receiver's
Address. For this, the Messenger will get Tk. 20/- as convince.
A special Register Book is to be maintained for TT, MT, DD, P/O and for
Cheque another book is reserved. Stamp, Envelope which is kept under cash
officer and in a small box can be inspected at any time. to meet the expense of
Stamp and envelope a Dr. Voucher is needed for withdrawal money from the
Branch Account. For registered letters, Vouchers are to be recorded here as
document.
Books Maintained
Local Dispatch Khata (including Peon Book).
Special Register Books for DD, MT, TT etc. and for Cheque
respectively.
If a cheque or bill comes to Pubali Bank from another branch of Pubali Bank
or other than Pubali Bank outside the Clearing Area, then Pubali Bank
Collects that Check from that Pubali Bank or through nearest Pubali Bank of
that Bank. The collecting Pubali Bank collects by the process of LSC from
other Bank and sends a TRA (Transfer Responding advice) to the payee Bank.
For example, if a customer of Pubali Bank Dilkusha Corporate Branch, Dhaka,
deposits a cheque of Rupali Bank Ltd., Pabna then the procedure done by the
collecting Pubali Bank is as follows:
a) The cheque is first deposited through a received seal with the help of a
slip.
52
c) Entry for outward Clearing register is given with clearing seal and
giving the cheque a "S" (subsidiary) seal.
ii) Then the instrument is sent to clearing for collection. For this case,
the accounting procedure is
Customers deposit (cheque, drafts etc.) for collection along with deposit slip.
Instruments within the range of clearing are collected through Local clearing
House but for outside the clearing house ranges are collected through SC. For
example, customer of Pubali Bank Dilkusha Corporate Branch, Dhaka,
deposits a cheque of Pubali Bank, Pabna Branch. For this purpose, the
collecting Bank Pubali bank Dilkusha Corporate Branch, Dhaka will do as
follows:
i) The cheque is first deposited through a Received seal with the help
of a slip.
ii) The collecting Bank gives a crossing with "Pubali Bank Dilkusha
Corporate Branch". It indicates that the mentioned Bank is the
collecting Bank.
53
iii) Entry for forward Clearing Register is given with Clearing seal
and giving the cheque a "S" (subsidiary) seal.
54
and reported to Head Office on schedule. Unpaid DDR's will be
returned to the purchasing offices along with the objection Memo.
a) The Bank transfer scroll the object of which is to balance the transfer
vouchers before the Clean Cash Book is posted will be written up by a
clerk. The clerk responsible for presentation of the vouchers will enter
in the transfer sheet simultaneously ant the supervising official passing
the transfer vouchers will authenticate the entries.
b) All cheques and transfer vouchers will be entered in the transfer scroll
sheet and numbered with their scroll number under initials of the scroll
writer. All transfer vouchers, including those which are not
individually entered in the transfer scroll/sheet, will be branded with
the paid or received date stamp.
As a cheque payment order or bill come from a Bank within the range of local
Clearing House then it is sent for collection through Clearing House. The
Cheque may be crossed or not, if a customer of Pubali Bank deposits a cheque
of another Bank which is within clearing, then Pubali Bank will Credit his
Account and collect it (cheque). Though the amount is credited in the
customers account but will not get the money until the cheque is honored.
i) The cheque is first deposited through a received seal with the help
of a slip.
ii) The collecting Bank gives a crossing with "Pubali Bank Dilkusha
Corporate Branch". It indicates that the Mentioned Bank is the
Collecting Bank.
55
iii) Then an entry has to be given in the Outward Clearing Register
along Clearing and an "S" (subsidiary) Seal.
iv) After that, the cheque has to be sent to Pubali Bank Local Office
along with other cheques (if any). These sorts of vouchers are
prepared for this purpose.
If the cheque is drawn on other branch of Pubali Bank within the same
Clearing area then it needs be collected through inward Clearing House of
Pubali Bank itself.
If the cheque is or other than Pubali Bank then the Cheque has to be sent to the
Bangladesh Bank Main Clearing House through Pubali Bank Local Office
clearing house.
The clean cash book which is the abstract of cash day's transactions classified
under the general ledger headings, will be compiled from the totals of the
various books subsidiary to the clean cash book including the day books in
which the relative vouchers have been entered in details under authentication
and will be cheeked there form by unauthorized official.
Procedure:
The clean cash book writer must see before taking the total in the clean
cash book from the subsidiary books/ day books that the books duly
checked and authenticated by the authorized officials.
56
The clean cash book will be checked daily from the subsidiary
registers/ day books by an authorized supervising official who will
agree the entries under each head the respective registers/ day books.
Bach morning the Manger will scrutinize the whole of the previous
day's vouchers.
After the daily balance all vouchers should be collected by the clean
cash book writer and handed over to a supervising official who will
lick them up overnight, under protection from Fire, together with all
current records.
Current Account
57
Discount Account
Interest Account
Exchange Account
Commission Account
Charges Account
Stationery Account
Observation:
58
CHAPTER-5
59
CHAPTER-5
5.1 Introduction:
Pubali Bank Limited, being one of the largest Commercial Bank, had some
prejudice to finance directly on priority basis to Agriculture, Industry and
Commerce sector for strengthening the economic base of the country. Pubali
Bank Limited plays the key role to oil the Economic Wheel of the Country.
Beside this, Pubali Bank has been maintaining all Government Policies its
Pioneer position in extending loans to Government Bodies, sector corporations
and private enterprises. The Bank gave predominance to the Govt. policy of
financing men or small means with enterprising spirit of investment and
provided finance as easy terms and a logical rate or interest as was during the
last few years.
The granting of advances is one of the most important functions of a Bank and
the test of a Bank's strength depends considerably on the quality of its
advances and the proportion they bear to the total deposit. Although receipt
from Exchange, Commission and Bank's Charges contribute a fair amount of
the profits of Commercial Bank, its earnings are chiefly derived from interest
charged on loans and discounts. A wise and prudent in regard to Advances is,
therefore, considered an important sector inspiring confidence in the
depositors and customers of a Bank. Following are the basic principles or
sound lending which each banker follows when considering an advance
proposal.
Safety
The first guiding principles of a Banker should be "Safety First", so far as his
advances are considered, because the very existence of a Bank depends of the
Safety of its outstanding which should never, therefore, he sacrificed to the
60
profit earning capacity of its advances. Consequently, to maintain a Banking
concern in sound condition, it is very essential that the safety of its advances
to customers should be above suspicion. Extreme care should be taken that the
fund rent out are not subject to any risk or being lost. The Banker is to ensure
in the best possible manner that the money advanced by him goes to the right
type of borrower and is utilized in such way that it will not only be safe at the
time of lending but will remain so throughout, and after a useful purpose in the
trade or industry where it is employed, is repaid with interest.
Liquidity
Bank's can invest in two types of terms viz. Long term and Short term. Banks
feel very risky in long-term investment. So, they normally invest in Short term
investment to maintain the liquidity of the Bank. The Liquidity of an Advance
means its repayment on demand or on due date or after a short notice. The
loan must stand fair chances or repayment according to the requirement
achieve. It is almost important that Bank loan must be repaid as they become
due otherwise; the liquidity position of the Bank is endangered. The major
cause of Bank's failure has been had liquidity. The period of the advance and
the case with which it will be repaid are very important. Even in the case of
fully secured advances if it is feared from the very beginning that the advances
would only he recovered by selling the securities it is not considered a good
advances. It must, therefore, always ensure that the advance will be repaid
from resources other that the securities pledged.
Profitability
61
by them. They have to incur expenses on establishment stationery etc. They
have to make provision for depreciation of their fixed assets and also for any
possible bad or doubtful debts. After meeting all these items of expenditure,
which enter the running cost or Bank, a reasonable profit must be made. The
landing rate of Bank is based on all these considerations. It is sometimes
possible that a particular transaction may not appear profitable in itself, but
there may be some ancillary business available, such as deposit from the
borrower other concerns or his foreign exchange business, which may highly
remunerative. In this way, the transaction may on the whole be profitable for
Bank.
Purpose
There are obvious risks involved therein apart from the antisocial nature of
such transactions. The Banker must closely scrutinize the purpose for which
the money is required and ensure as far as he can, that the borrower applies the
money borrowed for a particular purpose accordingly. Purpose has assumed a
special significant in the present-day concept or Banking.
Diversification of Risks
The security consciousness of a Banker and the integrity of the Borrower are
not adequate factors to keep the Banker on safe side. What is more important
is the diversification of Risk. This means, he should not lend a major portion
of his loan able funds to any single Borrower or to an Industry or to one
particular Region. In fact, the entire Banking business is one of taking
calculated risks and a successful banker is an expert in assessing such risks.
He is keen on spreading the risks involved in lending over a large number of
Borrowers, over a large number of Industries and Areas, and over different
types of securities; the advances must not be in one particular Industry. Too
many eggs should not be placed in one basket, because any adversity faced by
62
that particular Industry will have serious effect on the Bank. Slump does not
normally affect all Industries and business simultaneously.
Security
Bankers may realize it and reimburse themselves if the well calculated and
certain source of repayment unexpectedly fails. It is, however, incorrect to
consider an advance proposal from the point of view of security alone. An
advance is granted by a good banker on its own merits, that is to say with due
regard to its safety, capacity liquidity purpose etc. and after looking in to the
character, capacity and capital or the Borrower and not only because the
security is good.
Sources of Repayment
A sound credit is one where timely repayment is assured. So, before giving
financial accommodation, a Banker should consider the source from which
repayment is promised. In some instances, debentures, which are to be
redeemed in few month times or a lire policy, which is to mature in near
future, may be offered as security. Advances against such security give no
trouble.
Sometimes customers may apply for loans for additional Working Capital for
their business and undertake to repay out of the profits over a period. In such
cases, the Rate at which the customer can reasonably hope to repay should be
ascertained. An examination of the audited accounts may guide the Banker in
knowing the repayment capacity of the customer.
63
Suitability
Even when an Advance satisfies all the aforesaid principles it may still not be
suitable. The Advance may be encountered to National interest. These
Principles may have to be amended to a certain extent. Suitability of Advance
from National viewpoint has therefore come to be regarded as a basic principle
of Lending.
The last and the most fundamental principle of lending are the integrity and
reliability of the borrower. To avoid bad debt, it is the basic factor before any
loan proposal can be considered. The success of any business depends upon
the ability of the Banker to study borrowers. The study of a borrower involves
the study of the five C's of the Party. This five C's refer to Parties:
Character
Capacity
Capital
Conduct &
Capability
Instead of five C's some authors mention the five R's. This five R's indicates
Parties:
Reliability
Responsibility
Resources
Respectability &
Return
64
one of the Principle services of a modern Bank. Advances made in Pubali
Bank in different natures, such as, Cash Credits (CC), Overdrafts, Small 1-
loans, Demand Loans, Bills purchased & discounted, House building Loans
and Staff Loans etc. Pubali Bank deals with the money from the depositors
repayable on demand. So, it can't afford to lend their funds for long periods.
65
small traders and small industrialists who can't offer their stocks for Pledge but
can only hypothecate the stock in their shop. In this case, Ownership and
Possession of the goods remain with the borrower although by virtue of the
"Hypothecation" agreement. The Bank can take Possession of the goods if the
Borrower defaults.
Pledge
In case of "Pledge" the possession of the goods is delivered to the Creditor i.e.
Banker. It is therefore, regarded as the most secured type of Advance. Cash
Credit in its truest sense is against pledge of goods. It is a separate ledger. In
addition, Goods Ledger, Go-down Register, Go-down Key register, Go-down
Index Card etc. are also maintained. Deliveries of goods are made on the
strength of delivery order issued by the Banks and goods are received through
goods Challans deposited Borrower. The person who transfers the goods is
called Pledger (Party) and to whom it is transferred is called the Pledge (The
Banker).
Duties of the Banker (Pledge)
The Pledge is bound to take that much care of the goods pledged which
an ordinary prudent man would take of his own goods under similar
circumstances.
The Pledge must make use of the goods pledged according to the
agreement is entitled to terminate the contract and claim damages, if
any.
The Pledge must deliver the goods to the Pledge on repayment of the
debt. It is duty of the Pledge to deliver the goods according to the
direction of the Pledge.
The Pledge must deliver to the Pledge any increase or profit which
may have occurred from the goods bailed for example, dividend on
shares.
66
5.2.2 Overdraft
67
Staff Demand loan.
Purchase and discount of Bills is also a special form of advances. Pubali bank
normally purchase demand Bills of exchange that are called drafts
accompanied by documents or title to such as Bill of lading, Railway of Truck
receipt. The purchase of bills of exchange drawn at an issuance i.e. for a
certain period maturing on a future date and not payable on demand or sight is
termed as discounting a Bill and the charge recovered by Bank for this is
called "Discount". This is not very common in our country and is normally
limited with the discount of Foreign Bills; inland Bills are rarely discounted of
an organized Bill market.
68
5.2.8 Mid term Loans
69
10 percent. These loans should be repayable within maximum period of two
years, which is subject to renewal with approval from Head Office. There are,
however, restriction of Bangladesh about extending discredit facilities existing
capacity and capital assets that is running Buses, Cars, and all other taps of
vehicles or Launches. Advances are allowed only for creating additional
capacity such as acquisition of new Buses, Trucks, Coasters, and Taxies etc.
Pubali Bank takes the policies, which help the development of several sectors
of the country under general credit division and for achieving the proposed
goals of the principles of Agricultural, Economical, Industrial and
Trade.Following the guide lines of Bangladesh Bank, this is the credit policy
of Pubali Bank. This policy is changeable. If Bangladesh Bank resists
providing credit in any sector Pubali Bank does not provide any credit in those
sectors.
Bank takes the policy of the rate of interest only for encouraging the rural
savings or investment. If the rate of interest is low, the velocity of money will
be increased.
Bank rate is decreased from 8 percent to 7.5 percent by Bangladesh bank and
which the Governing Body of Pubali Bank approves also.
70
5.4.2 Savings Rate
In order to increase the savings, Pubali Bank offered 7.75 percent against
savings deposit.
Keeping margin 10 percent of face value, bank provide loan against 90 percent
of residual FDR. Rate of interest is now 8.5 percent. It is a kind of short-term
loan for 12 months.
Bank provides this loan according to the grade of the staffs for their housing,
buying motor cycle and bicycle, children's education and marriage ceremony
etc. Its rate of interest is 6.5%.
There are various types of loans in the credit under General Advance Division
excluding public sector.
Chemical Industry: It includes the soap, on and chemical factory.
Rice, flour and oil mills: To install action of machine and working
capital.
Jute Loan: Cash Credit and segregate both are sanctioned to the private
jute industry.
71
Spinning Mills: Here also Cash Credit and segregate loan are
sanctioned as working capital.
Small Loan: All types are working capital below two lacs in any
trading concern.
5.6 Restrictions:
Leather of Deer
Leather of Snake
Hemp
Wine
Opium
Elfish etc.
72
depositors and shareholders of the Bank. They should strictly adhere to the
Banking laws Rules and Regulations of the govt. of Bangladesh, the
instruction issued by Bangladesh Bank Head Office from time to time that
affects business practice of the bank. However, the key to safe, liquid, health
and profitable credit operation depends in the quality of judgment used by the
officers making lending decisions. The principles are described below
precisely:
Purpose:
Purpose should be the primary guiding principle, which is kept in view. The
purpose for which lending is made should be productive as to ensure definite
source of repayment. Banks discourage advances for Harding stocks or for
speculative activities. There are obvious risks involved there in a part from the
antisocial nature or such transaction. Banker must closely scrutinize the
purpose for the borrower applies a particular purpose accordingly. Purpose has
assumed a special significance in the present day concept of Banking.
73
rely on the obligation of the borrower above but wants some tangible security
from which he can obtain repayment, in case the borrower is unable to meet
his obligations. The Banker also, making advances and loans, naturally wants
to secure himself by some reliable security. Security is considered as an
insurance to fail back upon in case or emergency. Bankers may realize it and
reimburse themselves if the well calculated and most certain source or
repayment unexpectedly fails. An advance is granted near a good Banker on
its own Merits, that s to say with due regard to its Safety, Liquidity purpose
etc. and looking after into the character, capacity of the borrower and not
because the security is good.
In the case of advances against Hypothecation or stock, stock statement is to
be or twice a month as per terms of sanction. The certificate at the foot of the
state should be signed by an Authorized person to operate the Account. These
statements are to be carefully verified to see the turnover of stock, the price of
the Goods, Quality of goods etc. The price must be made market price or
invoice price whichever is lower. A copy of the statement is kept at the Branch
and the other one is sent to Head Office/regional Office.
Possession
Situation
Force sale value of the security as if the Bank can sale the security
when the borrower fail to repay.
74
5.7.2 Requirements of Loan Proposal
No objection letter from the Govt. or any other Authority about the
Land mortgaged to the Bank as security of credit which is sanctioned
by the Same Authority.
Audited Profit & Loss Account of last three years of his any running
business.
Sight plan of the project and root plan of the proposed loan.
75
Feasibility study/ Viability study of the project from different aspect
such as Technical, Management, Socio-Economical, Economical
aspect.
When a Branch Manager writes a letter to accepting all terms and conditions
of loan, it is called loan sanction. The conditions which are included in the
loan sanctions these are given bellow:
a) Limit.
b) Primary Securities.
c) Collateral Securities.
e) Expiry date.
f) Repayment.
g) Documentation.
h) Others Condition.
The following terms and conditions are included in the charge creation with a
Joint Stock Company:
Simple Mortgage Deed
Form 'L'
Floating Charge
Personal Guarantee
List of Machineries
Letter of Continuity
76
Board Resolution
Verification of Stocks.
5.7.6 Supervision
77
A proper authority covering operation and conferring power to
overdraw is held in respect of accounts of permeated upon by persons
other than the borrowers themselves.
It should be seen by him that the Advance does not contravene and law
directed by Bangladesh bank or the lending policy of the Bank.
The Balance of the account remains very near or goes beyond the
drawing limit or there is no good turnover.
5.7.7 Recovery
Advance is such kind of arrangement that its clients are repayable this either
on demand at the expiry of fixed period or as per repayment schedule agreed
upon while granting the facilities. If a loan is repayable on installment is not
repaid on due date. Overdraft and Credit are legally repayable on Demand,
although the Bank seldom exercises the right but in certain customers. In the
case, when loan is repayable in installment, entire loan usually becomes
immediately recoverable of at the option of the Bank.
Banks generally feel Risky their advances under the following cases:
78
II) If the Borrower is reported to have committed as act of
insolvency or has filed and application for his insolvency.
79
Schedule of Mortgage Properties and Relevant Papers.
Market reputation.
Feasibility Study.
Credit scoring.
Forwarding.
Valuation of Certificate.
Commercial Invoice.
Certificate of Origin.
Mutation Certificate.
80
Since 1973-74 Pubali Bank started to disburse in Agricultural Credit Program.
The lion share of the disbursed credit goes for crop; the credit is being
disbursed in a limited scale for the income group under various programs.
81
CHAPTER-6
82
CHAPTER-6
PAPERS TO BE SUBMITTED TO GET A LOAN
6.1 FOR FRESH / NEW PROPOSAL
(PAPERS TO BE SUBMITTED/ ENCLOSED)
BY BANK:
01. FORWARDING
02. FL-60 (in prescribed form)
03. FL-56: HYPOTHECATION OF STOCKS
04. ACCOUNT STATEMENT ( OF PREVIOUS ONE YEAR )
05. DECLARATION OF LIABILITY FROM THE BANK
06. PHYSICAL VERIFICATION REPORT
07. VALUATION CERTIFICATE
08. OTHER BANK’S OPINION
09. CERTIFICATE OF OBTAINING OF PARTICULARS
10. CIB FORM (in prescribed form)
BY THE BORROWER:
01. APPLICATION OF THE BORROWER
02. FL-59 (in prescribed form)
03. HYPO OF STOCKS FROM THE BORROWER
04. PROFIT-LOSS & BALANCE SHEET STATEMENT
05. LIABILITY DECLARATION IN THE BORROWER’S PAD
06. PERSONAL NET WORTH (in prescribed form)
07. CONSENT LETTER OF CO-SHARER ( IF ANY )
08. PHOTOGRAPHS
PHOTOCOPY:
01. SHOP RENT RECIEPT / COPY AGREEMENT
02. RENT RECEIPT OF THE LAND
03. INCOME TAX CERTIFICATE
04. MUNICIPAL TAX RECIEPT ( IF IN THE MUNICIPAL AREA)
05. TRADE LICENSE
06. PHOTOCOPY OF TITLE DEED, BIA-DEED, MUTATION PARCHA (WITH DCR)
07. LEGAL OPINION FROM BLA
08. COPY OF NON-ENCUMBENT CERTIFICATE
09. COPY OF SATISFACTION CERTIFICATE FROM THE BLA
83
6.2 FOR RENEWAL/ ENHANCEMENT PROPOSAL
(PAPERS TO BE SUBMITTED/ ENCLOSED)
BY BANK:
01. FORWARDING
02. FL-60 (in prescribed form)
03. FL-56: HYPOTHECATION OF STOCKS
04. ACCOUNT STATEMENT ( OF PREVIOUS ONE YEAR )
05. DECLARATION OF LIABILITY FROM THE BANK
06. PHYSICAL VERIFICATION REPORT
07. VALUATION CERTIFICATE
08. CERTIFICATE OF OBTAINING OF PARTICULARS
09. CIB FORM (in prescribed form)
BY THE BORROWER:
09. APPLICATION OF THE BORROWER
10. FL-59 (in prescribed form)
11. HYPO OF STOCKS FROM THE BORROWER
12. PROFIT-LOSS & BALANCE SHEET STATEMENT
13. LIABILITY DECLARATION IN THE BORROWER’S PAD
14. PERSONAL NET WORTH (in prescribed form)
15. CONSENT LETTER OF CO-SHARER ( IF ANY )
16. PHOTOGRAPHS
PHOTOCOPY:
01. SHOP RENT RECIEPT / COPY AGREEMENT
02. RENT RECEIPT OF THE LAND
03. INCOME TAX CERTIFICATE
04. MUNICIPAL TAX RECIEPT ( IF IN THE MUNICIPAL AREA)
05. TRADE LICENSE
06. PHOTOCOPY OF TITLE DEED, BIA-DEED, MUTATION PARCHA (WITH DCR)
07. LEGAL OPINION FROM BLA
08. COPY OF ENCUMBENT CERTIFICATE
09. COPY OF SATISFACTION CERTIFICATE FROM THE BLA
10. COPY OF PREVIOUS SANCTION LETTER
84
PUBALI BANK LIMITED
Photo
The Assistant General Manager
Pubali Bank Limited
Nawabpur Road Branch
Dhaka
Dear Sir,
I / We request you to kindly grant / renew / enhance / extend me / us an
advance in the form of Cash Credit / Overdraft / Demand Loan / Bank
Guarantee amounting to Tk. ......................... (Taka
.........................................................) on usual terms and conditions. I / We
state the following particulars and bind myself / ourselves to furnish you with
any other information & comply with required formalities which you may at
any time require:-
85
5. Permanent address with father’s / :-
husband’s name of individual/
proprietor / partners.
a) Mr. .................................................... i)
S/o. ................................................... ii)
Address: ........................................... iii)
......................................................... iv)
Tk.
...........................
.
Less Liabilities Tk.
...........................
.
Net Worth Tk.
...........................
.
Page No. 2
b) Mr. .................................................... i)
S/o. ................................................... ii)
Address: ........................................... iii)
......................................................... iv)
Tk.
............................
Less Liabilities Tk.
............................
Net Worth Tk.
............................
c) Mr. .................................................... i)
S/o. ................................................... ii)
Address: ........................................... iii)
......................................................... iv)
Tk.
.........................
...
86
Less Liabilities Tk.
.........................
...
Net Worth Tk.
.........................
...
6. Nature of Business
(Whole Seller/ Retailer/ :-
Manufacturer)
87
Contd. ..................... P/2
Page No. 3
Details Value
18. Property of the firm :- a) Movable Tk.
.................
..........
b) Immovable Tk.
.................
..........
b) Father’s name :-
c) Present occupation :-
d) Present Address :-
e) Permanent address :-
Comprising of Value
of
Asset
i)
ii)
88
iii)
iv)
Tk.
............
............
..
Less liabilities with
other guarantees Tk.
............
............
..
Net worth Tk.
............
............
..
Page No. 4
25. Declaration :
89
I/ We ........................................................................ S.o./ W.o.
............................................................... permanent resident of
............................................... P.S. / Thana .......................... Dist
.......................... by occupation .................................................................. by
faith ......................................................... at Present carrying on business of
.................................................................................... on proprietorship/
partnership basis under the name and style
................................................................................................
................................................................ at
............................................................................ P.S./ Thana
................................................... Dist ......................................... do hereby
solemnly on oath declare and affirm as follows:-
1. That I/ We have not taken any loan or enjoyed any facility in my/ our
personal name or in the name of my/ our proprietorship/ partnership firm
from any other branch of Pubali Bank Ltd. or any other Commercial Bank
save and except as stated under 9 (a) & (b) above.
2. That the statement made above is true and nothing has been concealed and
if at any time it transpires that I/ We have suppressed fact regarding
availing of a loan facilities from the bank, I/We shall be criminally liable.
Date: ..................................
.............................................
SIGNATURE
90
N.B. : Original and Duplicate to be forwarded to H.O. by branch through
Regional Office
. with proposal. Triplicate to be kept with the branch while the 4th copy
is for applicant.
F.L.-60
(REVISED)
PUBALI BANK LIMITED
(CREDIT PROPOSAL AND APPROVAL FORM)
Permanent :
Address
Factory/ Business :
91
06. Legal Status : Individual/ Proprietorship/ Partnership/
Private Limited Company/Public Limited Company
Tk.
Tk.
Contd.-.........................Page no.-2
PAGE NO. -2
(c) Sales:
92
Actual Sales Estimat
Sales ⇒ ed
Products Sales
⇓ 2003 2004 2005 2006
Total Sales
TOTAL
Enclose: Indent/ Proforma Invoice where applicable. For L/C, LIM & LATR
proposal, amount of Duty, VAT etc. Landed cost & approximate market price
to be mentioned.
93
Contd.-.........................Page no.-3
PAGE NO. -3
11. (b) Credit facilities granted to subsidiary/ affiliates/ associates/ sister
companies with extent of interest of the applicant borrower:
Name of the Borrower Nature of Limit Outstandin Expiry Security/ Extent
facilities g collatera of share
ls holding
11. (c) Details of other business of the applicant not included in 11(b)
above:
Name of the Business/ Firm Nature of Extent of Investment in
Business share holding the Business
(in Taka)
94
(ii) Details of Collaterals (As per valuation certificte in details attached
herewith)
Contd.-.........................Page no.-4
PAGE NO. –4
13. (a) Account performance:
( for the period from ................................... to ............................... )
(in Taka)
Nature of Account Debit Credit Balance
Summation Summation Maximum Minimum
Deposit Accounts
C/C (Pledge)
C/C (Hypo)
Loans
Overdrafts
Margin Deposits
LIM/ LATR/ PAD*
95
Overdrafts
Export Bills
Import L/Cs
Local L/Cs/ G’tee
Collection/ Remitt.
Others (Specify)
TOTAL
Contd.-.........................Page no.5
PAGE NO. –5
96
18. Industry Condition:
(How others in the same business/ industry are doing,
name of 2/3 Leading Companies)
20. Any adverse comments from Last Inspection/ Audit Report. (Our
Bank & Bangladesh Bank)
Contd.-.........................Page no.6
PAGE NO. –6
23.(a) Comments on the financial statements for the last 3 (three) years:
(State whether audited or unaudited)
Name of the Audit Firm if a/cs are audited:
97
GROSS PROFIT Tk. Tk. Tk.
Selling General, Admin,
Financial Expense & Depreciation Tk. Tk. Tk.
OPERATING PROFIT/ LOSS Tk. Tk. Tk.
Add Other Income Tk. Tk. Tk.
Less: Other Expenses Tk. Tk. Tk.
Net Profit/ Loss before Income Tax Tk. Tk. Tk.
INVENTORY/ RECEIVABLES:
Inventory/ stock in trade Tk. Tk. Tk.
Receivables Tk. Tk. Tk.
EQUITY:
Assets Tk. Tk. Tk.
Liabilities Tk. Tk. Tk.
Equity (= Assets minus Liabilities) Tk. Tk. Tk.
* For trading Firms Cost of Goods sold to be ascertained as under:-
Costs of goods sold = Opening stocks + Purchase + Carriage inward/ Freight – Closing stock
** If the Current years figure is higher than previous years figure then the
difference amount is increase in cash flow & vice versa.
*** If the Current years figure is higher than previous years figure then the
difference amount is decrease in cash flow & vice versa.
**** If the Current years figure is higher than previous years figure then the
difference amount is decrease in cash flow & vice versa.
Contd.-.........................Page no.7
PAGE NO. –7
98
23. (b) Important Ratios: 2003 2004 2005
Please enclose Balance sheet, Trading/ Manufacturing & Profit and Loss
Account of the applicant firm/ company for the last three years.
99
25. Any special consideration/ significant information about the customer/
transaction:
Contd.-.........................Page no.8
PAGE NO. –8
Name: Name:
100
Designation: Designation:
Name: Name:
Designation: Designation:
101
CHAPTER-7
CONCLUSION
102
CHAPTER-7
Conclusion
103
6. Lack of Sufficient Computers & Technology:
Computers are carrying need of any organization in the age of
technology. But the branch has only 4 computers to use by almost
27 employees. This is very few to run the task through computer.
Lack of good software and format PO, DD are manually prepared in
the branch.
9. Customer Objectives:
Many customers complain to me to improve and first the service as
well as behavior of the staff as it is a private bank.. Customers
require especially quick, accurate service and good behavior from
bankers.
104
CSS maturity and closing require 3 days, which is an image of
Govt. Bank.
105
5. Behavior Modification of the Employees:
Very few employees’ behavior should be modified enough to
maintain positive attitude toward banks. They should always think
it is a private bank and fully service oriented organization.
“Customer is the king / Queen” they should remember it almost
every time in office or out side the office.
9. Deposit Mobilization:
Prime Bank has to increase their deposit mobilization growth. Also
AB bank has to take necessary action to maintain and improve their
deposit mobilization growth rate.
106
Prime bank profit is increased previous year but grow rate is low.
So take necessary steps to increase the profit.
13. Foreign Trade:
Foreign trade increase is the essential for the prime bank. The
maximum amount of total earning comes from foreign trade.
14. Performance Increase:
Prime Bank should increase their performance by engaging efficient
decision maker in the managerial level.
15. New Planning:
All commercial banks including both nationalized and private should
introduce performance planning system for increasing their
operational efficiency or purpose the following other
recommendation:
• It should utilize properly idle money, because idle money is
one of the major problems of banking sector.
• Proper standard should be set by the movement for
comparative performance measurement.
• Proper decision should be taken for banking sector which
should not be changed rapidly.
• Proper training should be given in order to create efficient
personnel.
• World Bank’s prescription for banking reform programmed
should bee analysis before implementing.
107
7.3. CONCLUDING REMARKS:
From the detail discussions above I can easily conclude that In spite of all
problems Pubali Bank Ltd. is the fastest growing private commercial bank in
the country. The bank is already at the top slot in terms of quality service to
the customers and value addition for the shareholders because, despite difficult
circumstances, the Bank closed the year of 2005 with a number of
achievements. The Bank also made satisfactory progress in all areas of
business operation up to June 2006. The Bank further expanded and
consolidated its customer base in both of its core businesses and General
Banking Services.
108
7.4 Bibliography
1. Annual Report, Pubali Bank Ltd, 2004
2. Annual Report, Pubali Bank Ltd, 2005
3. Different Instructions Circular,Issued by Pubali Bank Head Office.
4. Website: www.pubali-bangla.com
109