A study on Functions of NRB Global Bank Limited & the role of the company to develop economy of Coxs Bazar

Submitted By,

Tanvir Mohammad Hayder Arif

MSc. International Business Management (UK), MBA in Finance (CU, BD)

Associate Professor, Department of Finance and Banking

University of Chittagong

Academic Advisor, Coxs Bazar International University

Mimosa Group Bachelor of Business Administration

Coxs Bazar International University

Date of Submission 7th

October, 2015

Submitted To,

Group Profile

Name ID Umma Kulsum Shampa 2014101067

Taslima Akter 2014101013

Kahinoor Akter 2014101047

Tanvin Arafath 2014101015

Shahena Akter Urmi 2014101069

Joynab Bagum 2014101049

Marthy Mro 2014101029

1 | P a g e

Introduction

Bank plays an extreme role in the development process of a country as it helps to accelerate the

pace of development by securing continuous supply of financial resources to people engaged in

numerous economic activities. Now a days banking sector is modernizing and expanding its

hand in different financial events every day. In order to survive in the competitive field of the

banking sector all organization are looking for better service opportunities to provide their fellow

clients.

So its become essential for everyone to have some idea on bank and banking procedure. for our

study purpose we selected NRB global bank limited coxs bazar branch for completing our

assignment.

Aim and objectives of the report:

There are three objectives. Those are:

1. to know about bank

2. to analysis various function of banking

3. to evaluate the role of NRB global banking to develop the economy of coxs bazar.

NRB global bank limited:

NRB means Non Resident Bangladeshis. NRB global bank is one of the private commercial

bank which is monitored and controlled by Bangladesh bank. the central bank has approved three

new commercial bank sponsored by non-resident Bangladeshi people residing in different

countries of the world. it has been approved by the regulatory bodies in 2012 to operate business

in banking of Bangladesh,.

After hard labor of almost three year complying with all regulatory rules and regulation it has got

the final approval on July 25, 2013 from the regulatory body to run the banking business in

Bangladesh.

Mr Nizam Chowdhury is the founding chairman of this bank having a long professional

experience of 26 years in the USA and other directors are also reputed in the own sector

business. These nice personalities have well defined mission and vision.

Mission of the bank:

1. Build confidence among the NRBs for investment.

2. Provide fast, accurate and adequate customer service upholding business ethics and

transparency.

3. strengthen inflow of remittance

4. create value for communities, societies and economies in which we operate by ensuring

growth and sustainability

5. matching technology with the help of well educated professionals and experienced

sponsors of the bank

6. Create dignified working environment for employees.

Vision of the bank:

to become exceptional brand in the financial sector by offering service excellence and creating

value for everybody encompassing customers, shareholders partners, society and economy

through transparency, technology, innovation and integrity.

Goal of NRB global bank:

to provide great experience of banking at home and abroad.

Profile of NRBGB:

particular date

getting NOC from Bangladesh bank June 19, 2013

consent from BSEC for raising paid up

capital July 07, 2013

date of incorporation from RJSC July 21, 2013

date of commencement of business July 21, 2013

License from Bangladesh bank for head

office July 25, 2013

listed as a schedule bank July 29, 2013

opening of head office September 09, 2013

license from Bangladesh bank for Gulshan October 10, 2013

operation of gulshan corporate branch October 23, 2013

List of the NRBGB branches:

1. Gulshan corporate branch

2. motijheel branch

3. nayapaltan branch

4. mawa branch

5. ulokhola branch

6. agrabad corporate branch

7. panchagachia bazar branch

8. gunabati branch

9. dohazari branch

10. patherhat branch

11. uttara branch

12. dhanmondi branch

13. coxs bazar link road branch

14. anwara branch

15. nasirabad branch

16. jubilee road branch

17. banani branch

18. beldi bazar branch

19. ashulia branch

20. nandiapara bazar branch

21. adhunagar branch

22. khatungonge branch

23. khulna branch

24. bogra branch

25. sylhet branch

26. panchagachia branch

Products and services:

NRB global bank is offering the following product or services to the client for financing different

purpose that fulfill the requirement of the bank and habe good return to the investement as well

as satisfy the client.

Retail banking products:

This back offers various products of retail banking such as:

1. NGB DPS (allow to build up savings through regular monthly deposit)

2. NGB double benefit (help to double deposited money on maturity)

3. Fixed deposit ( higher interest on saving for long term investment)

4. NGB monthly benefit (helps to earn extra income from every month of deposited money

which lets to early benefit every month)

5. NGB professional loan (personal loan facility for self empoyed professionals like doctors,

engineers and marines etc.)

6. Senior citizen benefit plan ( benefit plan for the senior citizen to carry out day to day

bank transactions independently)

7. NGB pre paid card

8. NGB debit card

9. NGB executive (Term loan facility for any legitimate purpose designed especially for

salaried executives at different corporate both permanent and contractual)

10. NGB salary account ( employer can credit monthly salary/paycheck every month will

credit to account)

11. NGB festivals(to meet festival expenses)

12. NGB freshers (for students)

13. NGB junior (For children aged between 3 to 18 years but account is operated by parents

until child attain her maturity (age 18)

14. NGB marriage loan (For covering the marriage expenses)

15. NGB perfect (Allows an individual to manage savings and transaction simultaneously)

16. NGB queen ( an interest bearing account designed exclusively for woman)

17. NGB travelers (a travel purpose loan which means the applicant has to declare his/her

inland/outland travel purpose )

Loan products:

The loan advance products are:

1. personal loan: car loan, house loan, education loan

2. project financing

3. working with capital financing

4. working capital financing

5. agriculture financing

6. consumer financing

7. lease financing

8. SME financing

9. House building financing

10. import financing

11. export financing

12. NGB adhoc loan

13. NGB travel loan

14. NGB marriage loan

15. NGB executive loan

16. NGB festival loan

Foreign trade product:

Foreign trade products that are offered by NRB are as under:

1. Letter of credit (L/C)

2. back to back letter of credit (BTBL/C)

3. Foreign demand draft (FDD)

4. IDBC (inland brick to brick local L/C)

5. IDBP (inland documents bill purchase L/C)

6. Remittance products: pay order (PO), demand draft (DD)

Other service products:

1. corporate banking

2. tele banking

3. SMS banking

4. ATM card

5. Mobile banking

6. Locker service

Overview of coxs bazar branch:

NRB global bank coxs bazar branch situated in coxs bazar link road, arif market, Chittagong-

coxs bazar main road (shohortoli link road) union-10 no zilongja, PO: link road, PS: coxs bazar

sadar. it start activities at coxs bazar from 18th September 2014. its total employees are 25

supports stuffs 9. the number of officer are 16. mr. abu naim mohammad misbaul hoque is the

senior principle officer. NRB global bank has an ATM booth in coxs bazar which situated in

kolatoli hotel-motel zone.

Organogram of NRB global bank to rank of coxs bazar

Head of Branch

Operation Manager

General Banking Incharge

GB

CSO

Credit Incharge

cREDIT aNALYST

CAD

Foreign Exchange Incharge

Export Officer Import Officer IDBC

different part of general banking of NRB global bank:

general baknking department constitute of the following section:

Accounting opening section:

Banking business is very much correlated with banker customer relationship. account section

established that relationship by opening a new account for the customer.

job description:

1. opening different types of account

2. handling operation of different types of accounts

3. responsible for issuing if cheque book

4. transferring and closing different types of account

5. giving accounts statement to the clients

6. making different vouchers regarding above transaction

7. Giving support to the clients of the bank and so on.

General Banking

Account Opening Section

Clearing Section

Cash Section

Types of account:

1. current account

2. saving account

3. fixed deposit (FD)

4. short term deposit

5. foreign currency (FC)

Cheque: it is written dated and signed instrument that contains an unconditional order from the

drawer that directs a bank to pay a definite sum of money to a payee. in legal terms a cheque is a

bill of exchange where the drawee is a bank. This is signed by the account holder directing a

certain person to pay certain amount of money only to do the order of certain person.

Issue of a cheque bank: at the time of opening an account a person is required to sign a cheque

book requsitionship, if the account opening from is found complete in all respects, a cheque book

is issued to client the account number is written in cash leaf of the cheque book and in it

requisitions hip.

Clearing Section:- Clearing a check means processing it so that funds are deducated from the

payers account and put into the payees account.NRBGB go through the process of setting

transactions between banks. Because so many transactions take place between banks on a given

day, Bank clearing exists to process what each party owes or is owed in a central location so the

least amount of money actually changes hands.

Job Descriptions:-

Issuing cheques

Giving 3 clearance seals on cheques (1 crossing seal and 2 endorsement seals).

Categorizing cheques according to high value (500000 tk above 500000 tk) and regular

value (below 500000 tk) allocation.

Giving posting in the system software

Dishonoring cheques if any specific reason comes across

Passing cheques after declaration of Bangladesh bank (central bank of Bangladesh)

Giving account statement to the clients if her or she wants to know.

Inward cheques:

It means what are sent to the outside. Outward clearing cheques are own banks cheques which

are presented on the other concerned banks for collection through clearing house of Bangladesh

Bank.

Outward cheques:-

It means what are receives from the outside. Outward clearing cheques are those ones which

have drown from the other banks which will be cleared / honored through the internal clearing

system of NRBGB.

Clearing seal:-

There are three necessary seals without which cheque cannot be either accepted or passed. They

are one crossing seal and two endorsement seal. In crossing seal the name of NRBGB is written

on the other hand one endorsement seal in known as clearing seal where date and clearing must

be given. In another seal payees A/C credited for NRBGB is written. The out horizon put his or

her signature on it for authorization and issuance of the cheque.

Software:- NRBGB use Temenos T24 software for clearing cheques. It is mainly such kind of

software making companies which only make various customized software for banking activities

of banks.

Cash section:

Cash is one of the most important sections of general banking department because it deals cash.

This department is mainly engaged with cash receipt and cash payment.

Job description:

Receiving cash

Paying cash

Issuing vouchers

Keeping record receipts.

Receiving of cash:

Receipt of cash is the source of cash at branch. It may be from customer, from central bank, from

any other bank or any other branch of the same bank.

Receiving Process:

Checking of deposit vouchers account amount word and figures.

Count the cash if possible manually or by the counting machine.

Check the notes-Mutilated, Mismatched or forged.

Put signature in the deposit voucher including counter foil.

Pass on the credit voucher with counter foil to the receiving cashier.

It the close of business hour sum up the register and tally it with the receiving registers.

Totaled the entries and match it with the receiving total.

Count the no. of vouchers

Checked by officer and countersigned cash is used by a bank for the payment to its

customer and the surplus cash is remitted to cash feeding bronch.

Payment of cash process:-

Every payment must be paid is due course

Analysis of the instrument before payment.

Passed for payment by canceling officer.

Amount, date, endorsement / order/ bearer

Obtain bearer signature on the back side of the instrument

Verify signature with the same obtained at the time to token.

Write value on backside of the instrument

Affix cash paid stamp no, 26in the face of the instrument.

Entry figure of the instrument in paying cashier book no.

Return the un-paid instruments.

Total the entries and balance it with the token and tally total.

Write in word the total amount and put signature

Release of paid instrument from the paying cashier book.

Send the vouchers to the respective department.

Cash balancing:

1) All employee related to cash must ensure the balancing of cash has done correctly on

daily basis for balancing of cash following works have to perform.

2) All cash register must be totaled singed.

3) Balancing them with each other.

4) All register must be dully counter signed by checking officer.

5) Balancing the register with the physical cash.

6) Write cash balancing book.

7) Ensure accounting of balance is correct.

8) Prepare cash cum day book.

Role of NRB Global Bank to develop the economy of Coxs Bazar:-

We all know that The bank is the life blood of modern economy.

By the collection of savings and capital formation NRB global bank plays a role to develop the

economy condition of Coxs Bazar .

No business can run without banking. NRB global banks gives loans to the SME, for smoothly

running their business.

NRB global bank plays an important role to create employment in Coxs Bazar which also a part

of economic development.

Its also gives loans to the woman entrepreneur which helps those helpless people to reached

their own or position. This bank also gives loans to the students for completing their higher

education.

Though it is a new bank but its ready to gives loans and helps to the hotel and motel which is

also a big part of economic development of Coxs Bazar.

Findings and Analysis

If we talk about the deposit of the NRBGB then we see that there deposit forget was 26cr and

they achieve 23cr. Which is really a good performance as it is new in bank industry.

Then if we see their opening account forget the see that their forget was 2000 but their

achievement is 1400. They fail to open 600 accounts actually which is not so good. There section

loan target was 200cr. But they give loan only 13cr. Tk. Because they dont find any profitable

section for giving loan.

There main target was gain breakeven point but the fail to achieve it and there lose is 5cr. Tk.

After analysis there function and their activities we see that they are doing general banking

function. Nothing is unique then other bank.

Conclusion:- The bank is the nerve center of modern economy. So its very needed for every

people to know about the bank and banking for this purpose we made a assignment on NRB

global bank. It is a great experience for all of us to visit NRB global bank and gather information

from the bank. By the process we know that the activities on function of this organization their

mission, vision, and how they play the role to economic development of Coxs Bazar.

Though they have some limitation but they try hard to give better service to their client.

Recommendation:-

It is really difficult to recommend NRBGB although it is new in banking industy. We tried to

gives some recommendation on the basis of our findings to the study. The Recommendation are

given below:-

1) During the account opening period the officer must inform each and every detail to open

specific account so that the client doesnt face any problem of further processed.

2) They have to record their all information properly about their brench so that every people

can gain their information when they needed.

3) They have to arrange some workshop for their employee so that their employee can use

to about new technology and there uses.

4) We also think that they have to do some marketing their branch because its a totally new

for Coxs Bazar.

Appendix

21.5

22

22.5

23

23.5

24

24.5

25

25.5

26

26.5

Target Achievement

Deposit Target (Cr)

0

500

1000

1500

2000

2500

Target Achievement

Account Opening

0

5

10

15

20

25

Target Achievement

Loan (Crore TK)

Bibliography

Websites & Journals

NRB Global Bank, financial institution. Available at: [Official Website] (Accessed on: 29.09.2015)