Analysis On Overall Banking System A Study On BASIC Bank Ltd. Jubilee Road Branch, Chittagong.

(THIS INTERNSHIP REPORT IS SUBMITTED FOR THE PARTIAL FULFILMENT OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION WITH A MAJOR IN FINANCE & BANKING)

Submitted by: Name: Shamima Nasrin Matric No: B071251 Program: BBA. Semester: Autumn, 2010.

Internship Duration: March 2 May 31, 2011 Submission Date: June 07, 2011

Department of Business Administration Faculty of Business Studies International Islamic University Chittagong.

Analysis On Overall Banking System A Study On BASIC Bank Ltd. Jubilee Road Branch, Chittagong.
(THIS INTERNSHIP REPORT IS SUBMITTED FOR THE PARTIAL FULFILMENT OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION WITH A MAJOR IN FINANCE & BANKING)

Submitted by: Name: Shamima Nasrin Matric No: B071251 Program: BBA. Semester: Autumn, 2010.

Supervised by : Mrs.Sayema Haque Lecturer Department of Business Administration

Internship Duration: March 2 May 31, 2011 Submission Date: June 07, 2011

Signature of Supervisor

Department of Business Administration Faculty of Business Studies International Islamic University Chittagong .

Date: 7th June, 2011 To The Head of the Department Department of Business Administration International Islamic University, Chittagong . Subject: Submission of Internship Report. Dear Sir, I have great pleasure to submit before you my practical orientation report on BASIC Bank Limited (Bangladesh Small Industries and commerce Bank Limited), where I have completed my practical orientation in banking for two months as a part of the BBA Program. I have observed closely and studied different practical aspects about general banking, Loan and Advances and foreign exchange. It is a great experience for me to work in BASIC Bank Limited. I have worked two months at Jubilee Road Branch out of three months. Most of the time was spent in different departments of the Branch. I have worked hard in preparing this report and hope it will satisfy my course requirement for the BBA program. I hope that this report will meet your requirement and I would be glad to furnish any further clarification in this regard, if needed. Sincerely yours, __________________ (Shamima Nasrin) Matric No: B071251 BBA (Finance & Banking) Department of Business Administration, IIUC.

Acknowledgement
I am grateful to The Almighty Allah who has enabled me to complete the Internship Program successfully. At first, I offer my sincere gratitude and thanks to my supervisor, Coordinator of BBA Internship Committee,& MD.Mahbubur Rahman, Head & Associate professor, Department of Business Administration, IIUC, whose are inspiring guidance, valuable suggestion made this report possible. I acknowledge with deep gratitude to the Department of Business Administration, IIUC, for giving me this opportunity to perform my internship program under Bachelor of Business Administration. I am especially grateful to DGM Mr.Abdul Adud of BASIC Bank Limited, Jubliee Road Branch, Chittagong. I am also indebted to many officials of BASIC Bank Ltd, Jubliee Road Branch, Chittagong, for their valuable advice and cordial cooperation in various aspects of my study. I express my gratitude and special thanks to Mr. Md. Didarul Alam (Manager). I would like to thank Mr. Mashiur Rahman (Manager), Loan and Advance, Mr. Asif Iqbal (Assistant Manager), Md. Aminul Haque (Amin) (Assistant Manager), Miss.Tamanna Rahman(Officer), Mohammad Saifullah(Officer), Akshid Sarraz(Officer) in General Banking,Mr.Ranjan Chakraborty(Manager),S.M.Faruque(Officer) in Foreign Exchange, Jakir Hossain(Assistant Officer),Shamima Akter (Assistant Officer) in Account Section. Finally, I would like to thank all officials of BASIC Bank Ltd, Jubliee Road Branch,Chittagong and Department of Business Administration, International Islamic University Chittagong, again.

Executive Summary
The dawn of the 21st century witnesses glimpses of dynamism almost in every field of human activities. To keep pace with the rapid developments in theory and practice the banking sector is performing critical functions to streamline the financial and economic uplift of the society. Internship program for BBA students is a must for combining theoretical knowledge with practical knowledge. I have completed my internship in BASIC Bank Limited, Jubliee Road Branch, Chittagong. I spent my time in various departments of the bank. In order to prepare of this report information was collected from both the primary and secondary sources. The BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) established as a banking company under the companies Act 1913 launched its operation in 1989. It was incorporated under the Act on the 2nd of August, 1988. The Bank started its commercial operation from the 21st of January, 1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing Small Scale Industries (SSIs). The BCCI, the Government of Bangladesh took over 100 percent ownership of BASIC Bank Ltd on 4 th June 1992. However, the Bank is not nationalized; it operates like a private bank as before. Adjudged as one of the soundest banks in Bangladesh, BASIC Bank is unique in its objectives. It is blend of development and commercial banking functions. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loan able funds shall be invested in small and cottage industries sector General banking is designed to provide financial service to the general people is saving their money, smoothing transaction for businessman and ensure security of the precious wealth of the clientele. Through this section bank has to receive and disburse money, to develop banker $ customer relationship by opening different types of account and to facilitate overall banking operations. The basic function of a commercial bank is to collect cheques, drafts etc on behalf of its customer.

The loans and advances are always profitable for a bank. As the bank mobilizes savings from the general people in the form of deposit, the most important task of it is to disburse the deposit as loan and advance to the people who are in need of fund for investment for the development of commerce and industry.

An important factor in credit administration is to review the loan regularly. It helps to early detection of problem loan and forces management to take necessary remedial measure. Loan review consists of a periodic audit of the ongoing performance of some or all of the active loans in a banks loan portfolio. To ensure that the loan policy is consistent with the bank and Bangladesh Bank requirements, the official has to carry out this function. In dealing with the problem loan, BASIC Bank offers revised loan agreement, interest discount and if not recovered legal action is taken.
The overall success in credit management depends on the banks credit policy, portfolio of credit, monitoring, supervision and follow-up of the loan and advance. 68% customers or clients thought that they are very satisfied with the bank for good behavior of the staffs, 22% are attracted by lower interest rate of loans and 10% of the respondents were attracted for the quality and prompt services of the bank.

Jubilee Road Branch has so far shown good performance and holds the strongest position among all branch of BASIC Bank Ltd. Overall, Jubilee Road Branch of Bank must make a positive attempt to be more outward looking in their goals and aware of what is happening in new age of Banking. I have provided more information from General banking, Foreign Exchange which has been provided in analysis on overall banking system.

TABLE OF CONTENTS

Chapter 1: Introduction Introduction of the study Objective of the study Methodology of the study Scope of the Study Limitations of the study Chapter 2: Company Profile Legal Framework of BASIC Bank Ltd. A Birds Eye View Board of Directors Organizational Structure Goals Objectives Management Recruitment & Training Procedure Product & Services Comparative Analysis with Other Bank Network Financial Highlights of BASIC Bank(2009-2008) Chapter 3: BASIC Bank Ltds Branch Banking Activities History of BASIC Bank Limited Objectives of Branch Banking Services of BASIC Bank Ltd Organogram BASIC Bank, jubilee road Br. Some renowned Exporters & Commercial clients Performance at a Glance of Jubilee Road Br. (Target & Achievement) Chapter 4: Analysis on Three Important Department General Banking Account opening Interest Rate on FTD Cash & Cheque Remittance Clearing House Operation Credit Program Basic Principles of Loans & Advances Offer Loans & Advances Types of Credit Activities Mode Wise Credit Credit Delivery System General Procedure for Loan & Advances Procedure is Applicable for Giving Loan to the Customer Basis of loan Classification Rate of Provisioning Foreign Exchange Function of Foreign Exchange Business Analysis on Import Section Analysis on Export Section Chapter 5: Summary of Findings Salient Findings Chapter 6: Recommendation Conclusion Bibliography Page No. 1 1 2 2 2 3 4 4 5 6 6 6 7 7-8 8 9 10 11 11 12 13 14 14-16

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17-19 20 20 21-22 23-24 25 25-26 26 27 27-31 32 33-35 36-41 42-43 44 44 44 45-56 56-60 61 62 63 64

BASIC Bank Limited

Serving people for progress

(Bangladesh Small Industries and Commerce Bank Limited)

A state-owned Scheduled Bank