Executive Summary Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers' remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to channelize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Bangladesh Commerce Bank Limited in the year 1997.The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on February 08, 1998. with an authorized capital of Tk. 920 million and paid up capital of Tk. 2000 million. Out of TK.920 million, the Government contributed TK.300 million and the depositors of former BCI contributed TK.520 million as their equity share. The balance TK.100 million is subscribed by 3 nationalized Bank. The Bank has 27 branches across the country. The Bank has plans to open more branches in the current fiscal year to expand the network. The Bank offers the full range of 1
Transcript
Executive Summary
Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers'
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization
and lifestyle changes concurrent with the economic development created a demand for
banking products and services to support the new initiatives as well as to channelize
consumer investments in a profitable manner. A group of highly acclaimed businessmen
of the country grouped together to responded to this need and established Bangladesh
Commerce Bank Limited in the year 1997.The Bank was incorporated as a public limited
company under the Companies Act. 1994. The Bank started its commercial operation on
February 08, 1998. with an authorized capital of Tk. 920 million and paid up capital of
Tk. 2000 million. Out of TK.920 million, the Government contributed TK.300 million
and the depositors of former BCI contributed TK.520 million as their equity share. The
balance TK.100 million is subscribed by 3 nationalized Bank. The Bank has 27 branches
across the country. The Bank has plans to open more branches in the current fiscal year to
expand the network. The Bank offers the full range of banking and investment services
for personal and corporate customers, backed by the latest technology and a team of
highly motivated officers and staff. In effort to provide Excellence in banking services,
the Bank has launched Online Banking service. A process is also underway to provide e-
business facility to the bank's clientele through Online and Home banking solutions.
Bangladesh Commerce Bank Ltd. is the preferred choice in banking for friendly and
personalized services, cutting edge technology, tailored solutions for business needs,
global reach in trade and commerce and high yield on investments. However, this report
deals with the Deposit Pension Scheme (DPS) customer satisfaction survey of
Bangladesh Commerce Bank limited. As Bangladesh Commerce Bank Limited, among
some other the local bank in Bangladesh is been operating for 10 long years, it is the
necessity of investigating whether they are running up to the standard level of customer
service or not. It is the high time to make an analysis that to what extent the customers
are being attracted to BCBL’s particular product like Deposit Pension Scheme and to
what percentage these customers are satisfied to the bank’s services. In this regard 60
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valuable Deposit Pension Scheme customers from total of 365 were interviewed. This
study uncovered the factors responsible for the high quality of services provided by
Bangladesh Commerce Bank. It will help the policy makers to further improve the
service quality of the bank and revealed the relationships between the service quality
factors and respondents’ demographic factors such as the customers’ age, education,
gender, length of involvement with the Bank and their profession. Another finding of this
research pointed out that what types of high quality services customers are getting from
such a well reputed bank and how far the Bank has been able to meet their requirements.
The customers of DPS accounts holders of Bangladesh Commerce Bank Limited are
found moderately satisfied. But there are some factors which need to be improved to
make the service quality level more satisfactory. Policy makers of the Bank should
concentrate on enhancing their present position in terms of the quality of customer
service and the range of products and services offered by them.
Table of Contents
Chapter
no.
Topic
no.Topic
Page No.
Organizational Part
1.0 Introduction 1
1.1 Statement of the research problem 2
1.2 Objectives of the study 3
1.3 Methodology of the study 3
1.4 Definitions of terms used in the study 4
1.5 Limitation of the study 4
2.0 Scenario regarding the main topic of the
report in Bangladesh.
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2
An Overview of the Organization
3.0 Background 6
3.1 Corporate Information 8
3.2 Organization Structure 9
3.3 Number of Branches 10
3.4 Number of Employees 12
3.5 Vision Statement 14
3.6 Mission Statement 14
3.7 Product / Services Scheme 15
3.8 Principal Activities 18
3.9 SWOT Analysis of the Organization 44
3.10 Conclusion 46
3.11 Prepare action plan 47
4.0 Practical Experiences gathered through doing
Internship or doing research works in an
organization.
48
5.0 Findings and Analysis regarding the objectives
of the study including problems identified.
49
6.0 Conclusion 49
6.1 Recommendation 50
6.2 References 50
6.3 Appendix 51
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1.0 INTRODUCTION
In the day of modern civilization bank is playing its splendid role to keep to the economic development wheel moving. The co-operation of bank is needed in every economic activity. In fact there is hardly any aspect of development activity, whether state inspired or otherwise, where banks don’t have a major role to play. Bank provide means and mechanism of transferring command over resources from those who have an excess of income over expenditure to those who can make use of the same for adding to the volume of productive capital. There are large numbers of small savers with small amount of savings who are generally reluctant to invest their surplus income because of their lack of adequate knowledge about complicated investment affairs. The bank provide them with the safety, liquidity and profitability by means of different savings media offering varying degrees of a mix of liquidity, return and safety of savings. These savings bank use as their key of business. They invest the savings in higher degrees of return and maximize their profit.
1.1 Statement of the Research Problem:
The internship report is a basic requirement for the BBA program. The proposed topic is
“general Banking of The Bangladesh Commerce Bank Limited”. The topic has been
assigned and supervised by Md. Mosarraf Hossain, Assistant Professor, Department of
Management Studies, University of Dhaka.
To prepare this report About ‘Practical orientation in Bank’ I gather the relevant
information from my office. Other than this from various books , online report .
All over the world the dimension of banking has been changing rapidly due to
deregulation, technological innovation and globalization. Banking in Bangladesh has to
keep pace with global change. To survive and thrive in such a competitive banking world,
two important requirements are: Development of appropriate financial infrastructure by
the central bank and development of ‘professionalism’ in the sense of developing an
appropriate manpower structure and its expertise and experience.
To produce skilled banker, only theoretical knowledge in the field of banking studies is
not sufficient. An academic course of the study has great value when it has practical
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application in real life situation. So, I need proper application of my knowledge to get
some benefit from my theoretical knowledge to make it more tactful. When I engage
myself in such fields to make proper use of my theoretical knowledge my practical life
situation such an application is made possible through internship. When theoretical
knowledge is obtained from a course of study at only the half way of the subject matter
internship implies on other the full application of the methods and procedure through rich
acquired of subject matter can be forcefully applied my day to day situation. Such a
procedure of practical application is known as internship.
To relate the theoretical knowledge with the practice we the student of BBA were
assigned in the practical orientation in bank during my learner period, I was attached with
the Bangladesh Commerce Bank Ltd. Mouchak Branch. The officers of this branch help
me to gather some practical knowledge for various banking Functions and completed this
report.
1.2 Objectives of the Study
The objectives of the study are as follows:
Broad Objective
The Broad objective of the practical orientation is to familiarize BBA students
with the real life banking and to compare with the banking theories that we have learnt.
Specific Objective
To understand the role of the banks in loans and advances
To familiarize with practical banking
To know the general banking practice
To know how to deal with Foreign exchange
To observe banker-customer relationship.
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1.3 Methodology of the study
Data have been collected from two sources. There are:
Primary sources of data:
Face to face conversation with the bank officers and staff.
Direct conversation with the client
File study of different section
Deskwork: During my practical orientation I worked according to the following
routine
Secondary sources of data:
Majority of the information were collected from the secondary sources, which include
Annual report of The Bangladesh Commerce Bank Ltd.
Different publication of the Bangladesh Commerce Bank Ltd.
Different textbook
1.4 Definitions of terms used in the study
This is a descriptive report mainly aiming to depict the General banking process of The
Bangladesh Commerce Bank Limited. The data gathered from both primary and
secondary sources were arranged orderly to get a clear picture of Bangladesh Commerce
Bank’s general banking policy regarding lending process and monitoring. The study
includes qualitative analysis of general banking. Based on the observational information
writer also tries evaluate and analyze the problems involved in various phases of the
general banking process.
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1.5 Limitations of the study
There are some limitation of the study are given below:
The main constraint of the study was insufficiency of the information that
is highly required for the study.
I carried out such a study for the first time. So in-experience is one of the
main factor that constituted the limitation of the study.
The duration of orientation was not enough to cover all aspects of banking for this
reason is difficult to cover all functions of the different desk to make
understandable
2.0 Scenario of Private Commercials Banks in Bangladesh:
Banking industry of Bangladesh comprises of four types of schedule banks, where four
Nationalized Banks (NCB) are dominating. These Nationalized Commercial Banks held
46.5% of total assets of the banking sector at the end of 2001. The Number of Schedule
bank in Bangladesh were 52 at the end of 2001, among them there are 4 states owned
commercial banks, 5 specialized banks, 31 local private commercial banks and 12 foreign
commercial banks. Five specialized banks controlled by Government hold 9.5% of total
assets of banking sector. These banks provide loans in some specific areas. At the end of
2001, 30 private commercial banks (PCBs) and 12 foreign commercial banks held 37%
and 8% of total banks assets.
At the end of 2001 total percentage of deposits of Nationalized Commercial Banks
(NCBs), Specialized Banks (DFIs), Private Commercial Banks (PCBs) and Foreign
Commercial Banks (FCBs) were 50.93%, 5.64%, 36.58% and 6.85% respectively. At the
end of January 2002 the number of total branches of functioning Schedule bank is 6271,
among which 2511 are in urban areas (40.20%) and the rest 3731 (59.80%) are situated in
rural areas. Among the total branches of bank there are 3608 branches of Government
owned commercial banks, 1331 private banks, 34 foreign banks and the branches of
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specialized bank 1298. Private Commercial Banks (PCBs) and Foreign Commercial
Banks (FCBs) are mainly operating in urban areas.
3.0 Introduction of Bangladesh Commerce Bank
Background:
Bangladesh Commerce Bank Limited (BCBL) was established by the act no. I2 of 1997, passed by the Parliament of the People’s Republic of Bangladesh. Subsequently on February 8, 1998 as per clause 7(7) of act 12 of 1997, the Government constituted an 11 member Board of Directors to organize BCBL and administer the affairs of the Bank in accordance with the Act.
Bangladesh Commerce Bank Limited was incorporated on June 1, 1998 as a public limited company under the company act 1994, Banking Companies act 1991 and in accordance with the act no. 12 of 1997. The Bank formally started operation from September 16, 1999 with the slogan of “A People’s Bank with a Mission”.
Capital:
The Authorized and the Paid-up capital of the Bank is Tk.2000 million and Tk.920 million respectively. Out of Tk.920 million, the Government contributed Tk.300 million and the depositors of former BCI contributed Tk.520 million as their equity share. The balance Tk.100 million is subscribed by 3 nationalized Bank.
Commencement of Business:
Having been registered with the Registrar of Joint Stock Companies (RJSC) and Firms with the prior approval of Securities and Exchange Commission (SEC) Bangladesh Commerce Bank Limited commenced banking operation with the opening of its Principal Branch at 19, Rajuk Avenue, Motijheel Commercial Area, the financial hub of the capital city Dhaka on September 16, 1999. By the end of the accounting year1999, the other 23 branches in Dhaka, Chittagong, Khulna, Sylhet metropolitan area and Bogra, Naogaon, Narayangonj started functioning. At present BCBL is successfully running operation in 25 branches with its last branch opened in Comilla. Export/Import/Foreign Exchange business is being done through our A/D Branches. We are also member of SWIFT. Import-Export, Foreign exchange, remittance related activities are performed with SWIFT.
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Auditors:
HODA VASI CHOWDHURY & Co. conducted audit of the Bank’s accounts for the years 2007 & 2008. HOWLADAR YUNUS & Co. is appointed as external auditor of the Bank for the year 2009.
DepositsPaid-up-CapitalShare Capital BCI LtdStatutory ReserveRevaluation ReserveGeneral ReserveOthers
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3.1 Corporate Information:
Name of the Company Bangladesh Commerce Bank
Legal Form A public limited company incorporated in Bangladesh on June 01, 1998 under the Companies Act 1994, the Bank Company Act 1991 and Act 12 of 1997.
01. Mr. S.A. Chowdhury MD02. Dr. Muhammad Asaduzzaman DMD03. Mr. M.A. Motalib Chowdhury CEO*04. Mr. M Ebadat Hussain EVP05. Mr. Md. Shamsuddin Ahmed SVP06. Mr. Md. Ghulam Nabi SVP07. Mr. Sagir Ahmed SVP08. Mr. Salim Hasan SVP09. Mr.K.M. Ashraf Hossain SVP10. Mr. Md. Abul Hossain SVP11. Mr. Md. Jahangir Alam VP12. Mr. Selim Ahmed VP13. Mr. S.M. Waliullah VP14. Mr. Ehsan Ahmed Rouf VP15. Mr. Anis Uddin Ahmed VP16. Mr. S.M. Reazur Rahman VP17. Mr. H. M. Abul Kalam Azad VP18. Mr. Md. Kamruzzaman Akand VP19. Mr. Md. Shafiqul Islam VP20. Mr. Md. Idris Ali VP21. Mr. Afzal Hossain VP22. Mr. Md. Abdul Halim VP23. Mr. S.M. Alamgir VP24. Mr. Dewan Md. Moniruzzaman VP25. Mr. Md. Shahadat Hossain VP26. Mr. Ali Azam Chowdhury VP27. Mr. Md. Kabir Ahmed AVP28. Mr. Mushfique Hossain AVP29. Mr. Syed Akhter Hossain AVP30. Mr. Md. Enamul Hoque AVP31. Mr. S.M. Showkat Ali AVP32. Mr. Md. Nizamuddin AVP33. Mr. Md. Saiful Islam AVP34. Mr. Mbdul Munim Chowdhury AVP35. Mr. Md. Mahabub Morshed AVP
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3.5 Vision Statement:
Become a bank of first choice by the customers with meaningful contributions to the society.
3.6 Mission Statement:
Bangladesh Commerce Bank Limited is committed to fulfill its customer’s needs and become their first choice in banking so that a sustainable growth, reasonable return and contribution to the socio-economic development of the country can be ensured with a motivated and professional work-force.
3.7 Banking Products:
Deposit:
Saving Deposit Account
Current Deposit Account
Short Term Deposit Account
Resident Foreign Currency Deposit
BCBL Deposit plus scheme (DPS)
BCBL Children Education Saving Scheme (CHESS)
BCBL Pension Benefit Scheme
Term Deposit:
Monthly Term Deposit
Term Deposit 3 Months
Term Deposit 6 Months
Term Deposit 12 Months
Term Deposit 24 Months
Loan &Advances:
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Loan Against Trust Receipt
Transport Loan
Consumer Credit Scheme
Real Estate Loan (RES. & Comm.)
Industrial Term Loan
Agricultural Term Loan
Lease Finance
Other term Loan
FMO Local Currency Loan for SME
Cash Credit (Hypothecation)
Small Shop Financing Scheme
Overdraft
Deposits of Bangladesh Commerce Bank :
Types of Deposits Amount (crore Tk)
Current Deposits 210.37Savings Bank Deposits 98.99Fixed Deposits 502.65Short Term Deposits 133.45Deposit under different schemes 75.21Other Deposits 182Bills Payable 16.09Total 1218.76
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Current d
eposit
Savin
gs ban
k dep
osit
Fixed
deposit
Short
term dep
osit
Deposit
under differe
nt sch
eme
Other dep
osit
Bills Pay
ble0
100
200
300
400
500
600
Series1
Loans of Bangladesh Commerce Bank:
Types of LoansAmount (crore Tk)
Overdrafts 99.97General loans 113.15Cash Credit 161.49Transport Loan 6.44Loan against Trust Receipt 163.14Payment against Documents 1.82Consumer Credit 1.06Staff Loan 16.15Other Loans 196.72Loans and Advances BCI 66.52Bills Purchased 0.14Total 826.6
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Overd
rafts
Genera
l loan
s
Cash Cred
it
Transp
ort Lo
an
Loan
again
st Tru
st Rece
ipt
Paymen
t aga
inst Docu
ments
Consumer
Credit
Staff Lo
an
Other Lo
ans
Loan
s and Adva
nces BCI
Bills Purch
ased
0
20
40
60
80
100
120
140
160
180
200
3.8 General Banking Department
The General Banking Department does the most important basic works of the banks. All
other department is linked with this department. It also plays a vital role in deposit
mobilization of the branch. For proper functioning and excellent customer service this
department is divided into various sections namely as follows:
Accounts opening section
Cash section
Deposit section
Clearing and collection section
Accounts section
Dispatch section
Personal and establishment section
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Accounts Opening Section
This section deals with opening of different types of accounts. It is also deals with issuing
of check book and different deposits book to the different accounts opener. A customer
can open different types of accounts through this department such as:
Current account
Saving banking deposit account
Fixed deposits account
Monthly saving scheme
Special deposit scheme
Requirements of opening an account
There are some requirements have to be completed for opening an account such as:
Current Account:
Current account where numerous can be made by the accounts holders within a working
day. There is no restriction on the number and the amount of withdrawals from the
accounts within availability of funds.
As the banker is under this obligation to re pay this deposit on demand. No interest is
paid in this A/C. Generally, current account is opened for businessmen and traders for
easy transaction. But a person can open CD A/C for special purpose. Requirements for
the different types of accounts holder are discussed below:
Proprietorship Firm:
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There is a different account opening form for proprietorship firm provide by the
Bangladesh Commerce bank Ltd, Mouchak branch; Requirements of opening CD A/C for
proprietorship are mentioned below:
Trade license
Seal of the firm
Attested photograph(2 copies)
Partnership Firm:
There is a different account opening form for partnership firm. Instruction for running an
account is given in this form documents required to open these types of account as
follows:
Attested Photographs (2 copies) of these who will operate the
account.
Partnerships deed
Resolution of the firm regarding account opening should be
given.
Trade license.
For opening every type of accounts a signature card and different register for different
types of account is maintained in the bank. An account number is given in each account
and the description of the account is entered in the computer:
Limited Company:
A separate account opening form is used for limited company. The banks always take
precautions for opening account these types of customer. Several documents are
submitted by them which should be checked carefully by the bank to be legally in a safe
position. Requirements to open an account as follows:
Memorandum of association
Article of association
Attested photographs (two copies each) of those who will operate the
account
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Letter of commencement (for public ltd. co.)
Letter of incorporation
List of the directors and there number of there and status.
Registration: the company must be registered and certificate related of
this issue is obtained from the registered office of join stock company.
Resolution: specimen of resolution to be passed by a limited company
for opening an account the bank.
Saving Bank Deposits Account:
SB account is meant for the people of the lower and middle classes who wish to save part
of their incomes to meet their future need and intended to earn to an income from their
savings. Therefore, the banks impose certain restriction on the saving bank account also
offer reasonable rate of interest. The cash reserve maintained by the bank against these
deposits is comparatively smaller than current account.
Restriction on SB account:
The number withdrawal over a period of time is limited. Three withdrawals
per week are permitted but more than that no interest will be paid on rest
amount for that month.
The total amount of one or more withdrawals of any date should not exceed 2
25% of the balance in the account unless 7 days advance notice is given.
Fixed Deposit Account:
These are deposits which are made with the bank for a fixed period specified in advance.
The banks do not maintain cash reserves against these deposits and therefore. The bank
offer higher rates of interest on such deposits. These deposits generally constitute 50% or
more of the total deposits. Usually customers are allowed to open this A/C for certain
period. The rate of interest varies in accordance with the terms and their rate of interest of
BCBL Mouchak branch is as follow:
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Months % of interest rate
For below tk. One million
3 months 11.15%
6 months 11.50%
1 year 12%
For more than TK. One million
3 months 12.15%
6 months 12.50%
1 Year 12.75%
The amount of FDR is payable once at time. After the term of which the A/C was opened
the FDR gets its maturity. The claim is then fulfilled by paying the principle amount plus
interest and bank deduct the Income tax on interest amount.
Opening of FDR:
There is prescribed form for opening FDR. No introducer is required for opening this
A/C. A minimum amounts as determined by the H.O. is required to open such A/C.
Dormant account:
Account in which no operation either deposit or withdrawal takes place for period of one
year should be treated as Dormant Account. Such account should be transferred to a
separate Auxiliary ledger called “Dormant Account Ledger”. As a measure of precautions
against a fraud the specimen signature cards of all dormant accounts should be also be
removed form the box of active account signature cards and kept in a separate signature
card box. The first withdrawal form such account should be allowed with closing and
other incidental charges and surrenders the unused checks leaves. The account should be
debited for the account closing charges etc. and unused check leaves should destroyed by
authorized office of the bank. In case of joint A/C the application for closing the account
should be signed by the entire joint A/C holder.
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Procedures of Closing account:
A customer may close out his account any time by submitting an application to the
branch. The customer should be asked to draw the final check for the amount standing to
the credit of his account less the amount standing to the credit of his account less the
amount of closing another incidental charge and surrender the unused check leaves or
customer will pay through pay order. The account should be debited for the account
closing charge etc. and unused cheque leaves should be destroyed by the authorized
officer of the bank. In case of joint account the application for closing the account should
be signed by the joint account holder
The recent changes in service charge:
Nature of the Account Service charge
Current Account (Half Yearly) TK. 500/-
Savings Account (Half Yearly) TK. 250/-
STD Account TK. 500/-
Check Issuance Fee TK. 1/- per leaf
Delivery of Account Statement Current Account (Half Yearly) Savings Account (Half Yearly) STD Account Any other frequency
FreeFreeFreeTK 100/- per instance
Solvency Certificate TK. 500/- per certificate
Education File opening TK. 5000/- per file
Cash Section:
There several counters work simultaneously in cash section of BCBL,Mouchak Branch.
There is also some electronic counting machines by which a huge amount of cash money
can be counted within a few minutes. This branch also allows evening hour transaction
only in case of deposit of money.
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Cash Receiving Procedures:
The work of cash receiving counter is examining deposit slips. Depositor will use the
prescribed deposit slip supplied by the bank to deposit cash, cheque, draft, pay order, etc.
In all types of deposit teller must check the following things:
The slip has been properly filled up.
The title of the account and its number.
The amount in figure and in words is same.
Instrument signed by the depositor.
Date of the instrument.
After checking all these things the teller will accept cash, draft, cheque, pay order, etc.
against deposit slip. The teller will place the cash in the cash drawer according to
denominations. The teller will place sign and affix “cash receipt, rubber stamp” and
return the customer.
Cash payment Producer:
Precaution
In order to safe guard his position; the paying banker has to observe the following
precaution before honouring a cheque:
A cheque must be looked whether it is an open or crossed cheque
The paying officer should see whether the cheque is drawn on his/her
branch.
He must see the cheque is post dated or pre dated. A teller must not
pay any post dated cheque.
The officer must carefully see the apparent tenor of the cheque. If it
is mutilated or materially altered then the officer must not honour it.
The officer must compare the signature of the cheque with the
signature on the specimen signature card.
The officer must verify the regularity of the endorsement.
The officer may allow overdue against a cheque if prior arrangement
is done with the bank.
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Passing the Cheque
If the cheque has no defect and it is payable, the in charge will sign in the cheque affixing
signature verification seal along with his/her initial and will cancel the cheque by striking
it with pen. The officers will handover the payment to the appropriate payee.
Dishonour of Cheque
A banker can dishonour a cheque in following situation:
Insufficient fund
Payment stopped by drawer
Alteration required drawer signature
Effect not clear in cheque
Exceed arrangement in cheque
Full cover not received
Payee’s endorsement irregular/illegible/required.
Drawer signature differed and required
Cheque is post dated/mutilated/out of date
Crossed cheque must be presented through a bank
Clearing stamp required cancellation
Cheque crossed “Account payee only”
Collecting bank’s discharge irregular.
Deposit Section
The function of the Deposit section is very important. It is fully computerized. The
officer of the deposit section maintains account number of the all customers of the bank.
They are used different code number for different account. By this section a
depositor/drawer can know what the present position of his account is. The officer makes
position three types of transaction, such as: Cash Transfer and Clearing. This section
performs followings tasks:
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Open a new account
Post all kind of transaction
Provide on demand report
Cheque maintained
Preparation of day transactions position
Preparations of closing monthly transaction position
Remittance Section:
Banks have a wide network of branches all over the country and officer various kinds of
remittances facilities of public. The remittances of the funds by banks are made through
different method they are:
Demand draft
Pay order
Pay Slip
Mail transfer
Telegraph Transfer
Above all this service is performed by the remittance department efficiently.
Demand Draft (DD) :
Demand draft is an order to pay money, drawn by Brach of bank upon another branch for
a sum of payable to order on demand. A draft cannot be drawn payable to named payee.
Draft may be parched. The draft is prepared with care regarding the name of the payee,
the amount and office on which it is drawn. In order to ensure safety, purchaser is advised
to cross they draft and bank given test number. The issuing officer send to drawer branch
an advice containing the particular of the draft.
Pay Order (PO):
Banks payment order other is an instrument which contains an order for payment to the
paid to effect local payment whether on behalf of the bank or constituents. In the
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beginning stage, PO was issued only to effect local payment of banks own obligations.
But at present it is also issued only to the customer which they can purchase to deposit as
secondary money of current money. The banks payments offers are in the from of
receipts and issued by the joint signature of two officials. It ensures payment to the payee
as the money deposited by the purchaser of PO is kit in the banks own A/C named.
Payment of the instrument to be made from the branch it has been issued. It is not
transferred and therefore it can only be paid to:
The pay in identification
The payees’ banker, who would certify that the amount will be
created to payees account.
A person, holding the letter of authority forms the payee whose
signature must be authenticated by the payee.
The purchaser, by cancellation provides the original PO is
surrender by him to the bank
Pay Slip (PS):
Pay slip is one of kind of instrument provided by the remittance section to the
applications for making payments certain sum of money to the name mentioned in the
pay skip.
Mail Transfer (MT):
Mail transfer is an advice regarding remittance of funds sent by one branch to another
branch of the same bank, at the written request of applicants. The mail transfer contains
The name of the beneficiary
Address of the beneficiary
Particulars of the account of beneficiary
Name of the remitter
It is a non –negotiable instrument and generally it is not handed over to the customer
rather then sends through post office to the concerned branch for credit to the respective
account.
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Telegraphic Transfer (TT):
Telegraphic transfer is the quickest methods of transferring funds form one place to
another place. The remitter branch sends a telegraphic message to the others branch, to
pay a certain sum of money to a named payee. Such a message is usually sent in coded
language. There are two procedures should be followed for TT.
Western Union:
Western Union Financial Services Inc. U.S,A. is the number one and reliable money
transfer company in the world. This modern Electronic Technology based on money
Transfer Company has earned world wide reputation in transforming money from one
country to another country with in shortest possible time.
Bangladesh Commerce Bank has set up Representation Agreement with Western Union
Financial Inc. U.S.A. as on 14th February 2006.Millions of people have confidence on
western Union for sending money to their friends and family. Through Western Union
Money Transfer Service, Bangladeshi Wage Earners can send and receive money quickly
from over 225000 Western Union Agent Location in over 197 countries and territories
world wide – the world’s largest network of its kind, only by visiting any branches of
Bangladesh Commerce Bank Ltd. in Bangladesh.
Clearing and collection Section:
For safety and security in financial transaction, people use financial instrument like DD,
PO, Cheque, PS, etc. It the duty of Commercial bank’s to collect this financial instrument
on behalf of their customer. This process that the banks use is known as clearing and
collection.
Clearing Section:
If a cheque, PO, DD, PS of a bank comes from another bank within the range of the local
clearing house it is sent for collection through clearing house to the respective branch.
28
The BCBL, Mouchak branch deals with clearing house on like all branch within the
range of the local clearing house on like of all branches with in the range of the local
clearing house. It collects all kinds of instruments on behalf of customers and sends it to
local office of BCBL. The local office then sent it to the respective branch for collection.
It deposits all kinds of instruments to the clearing house for collection on behalf of all
branches.
Essential things for clearing the instrument:
There are four essential things required for clearing the instrument:
Crossing seal
Endorsement seal
Clearing seal
Signature of Authorized office
Collection Section:
The clearing and collection transaction are handled in various ways:
Out ward clearing cheque
Inward clearing cheque
OBC (Outward Bill Collection)
LBC (Local Bill Collection)
IBC (Inward Bill Collection)
Clearing and Collection process
Various types of clearing and collection processes are briefly below:
Outward Clearing Instruments Handling Procedures:
If any cheque is deposited by any account holder which is not drawn on Dilkusha Branch
(BCBL) in remittance department (Note: the cheque which is not drawn on BCBL and
29
expected to be in process of collection of money from another bank can never be placed
for “Over The Counter” (OTC) payment. This cheque must be placed by account of
BCBL at first, in Remittance department with the deposit, the account of BCBL at first,
in Remittance Department with the deposit slip. In that deposit, the account number in
which the collected money will be kept, the cheque number against which the collection
of money from the paying banker will be happened, the name of the account–holder, the
signature of the depositor etc should be stated clearly. The process of outward clearing
cheques starts from here. The sequence is as follow :
Reception of cheque by the office and special to be given on the cheque.
Special crossing means the crossing in which the name of national bank,
Dilkusha branch is stamped.
Register Entry to be given on the Outward Clearing Register.
Clearing seal to be given (LBC for cheque, the money of which will be
collected from bank exists in Dhaka city or local area and OBC for the
cheques, the money of which will be collected from outside the Dhaka city
of local area).
Endorsement to be given at the bank of the cheque. The language of the
endorsement is like this-
Cheque Sche3dule (it is the computer posting for each other posting for
each outward clearing cheque)should be attached with each outward
clearing along with the forwarding (it is the computer posting of the sum
total of all cheques drawn on a particular bank) and be sent to the clearing
house with a view to be cleared.
Inward Clearing Instruments Handling Procedures:
Like the outward clearing cheque, there are some cheques, which are drawn by the
account holders of BCBL and given to other parties who are maintaining account with
other banks. They placed the cheques on there respective bank’s branch and thereby
come to the BCBL for collection of money. The treatments for these cheques are as
follows:
30
Verification of the position of account –holder to know whether the
cheque can be honoured or not
Register entry in the Inward Register Book
If there any returns then it should be marked separately.
Sorting of various types of inward clearing vouchers is happened next:
demand draft, foreign demand draft, pay slip and pay order are kept with
the remittance department and some of the rest are sent to the deposit
department and some to loan and advance department.
Here there happens an effect on IBTA (Inter Bank Transaction Account) in account
department where the particular client account is debited and the collection bank is
credited by the amount of cheque.
Outward Bill for Collection (OBC):
When Mouchak branch send any cheque drawn on another branch outside Dhaka city
(say Sylhet Branch) of BCBL for collection on part of its account holder, then this
collection procedure will be treated as OBC. OBC happens when the cheque would be
drawn ob another branch of BCBL which is outside the Dhaka city. The sequence of
OBC procedures is:
Reception of the cheque form account holder
Seal of the Mouchak Branch to be given on the cheque, special crossing,
and seal of OBC to be given in front of cheque and the endorsement to be
on back of the cheque.
Entry is taken on the OBC register.
IBCA (Inter Bank Credit Advise) is prepared and sent to SYLHET Branch
along with respective instruments.
Sylhet Branch Dr.
Mouchak branch Cr.
31
Dispatch to the deposit department for posting favouring the particular
client account
At last, it will be posted in the account department.
Account Section:
This is a very much crucial department for each branch. Records of all the transactions of
every department are kept here as well with other respective branch. This department in
Dilkusha Branch is basically, divided into 2 sections; one general section (for keeping all
types of transaction records in register book as well as in computer) and two IBTA
section.
IBTA (Inter Branch Transaction Account) Section:
Inter-branch transaction happens when one client of a branch places cheques or DD to his
branch (which is not branch on which is drawn) or if there comes TT or the branch send
TT, then there arises arrangement of negotiation between the collecting branch and
paying branch. Suppose Mr. x, deposit a cheque in his account in Mouchak Branch which
was drawn on Uttara Branch, BCBL by the account holder of that branch. In this case,
Mouchak Branch will acts as the collecting branch and the Uttara Branch will act as the
paying branch. The journal entry would be like this
Uttara Branch Dr.
Mouchak Branch Cr
The Uttara Branch will be liable to the Mouchak Branch for payment. On the opposite
side, when the Uttara Branch for collection they will show it on the Credit side of the
IBTA register.
The information which is included on the IBTA register is as follows:
32
Date
Particulars
Advice NO:
OE/RE NO:
Debit Amount
Credit Amount
Balance
Initial of the concerned officer
Remark
At the beginning of every month each branch has to send a summary of inter branch
transaction with other branches. In BCBL there is classification of branches; such as:
Monthly Statement of IBTA Reconciliation:
The senior branches have to send a summery of inter branch transaction account of
particular month to its junior branches (which is known as Monthly Statement of Status
of IBTA Reconciliation) and in response to the statement the junior branches have to
send Reconciliation Statement to all the junior branches (which is also the summary of
the particular month’s inter branch transaction account for that particular branch)
The information, which is included in the Monthly Statement of statement of Status of
IBTA Reconciliation, is follows as:
Name of Senior Branch
Balance as per ledger of the reporting branch as on……
Balance as shown by the senior branch on the Statement as on….
Outstanding as shown in Supplementary Reconciliation Schedule by
the reporting Branch
Date of Advice
33
Debit Advice Number/Credit Advice number
mentioning OE/RE
Amount.
Particulars
Group as mentioned in Supplementary Reconciliation Schedule by the reporting branch
comments of the reporting branch. The information which is including in the
reconciliation statement is as follows:
There are two sides of this statement; one is created and another is debit side. On the
credit side the information which are include as follows:
Credit balance on statement
Credit (overdrawn) ledger balance
Debit (overdrawn) balance on statement
Debit ledger balance
Statement debits not yet credit to ledger (as listed on the supplement
schedules attached)
Ledger debits not yet created on statement (as listed on the supplement
schedules attached)
Statement credits not yet debited to ledger (as listed on the supplement
schedules attached)
Ledger credits not yet debited on statement (as listed on the supplement
schedules attached)
Total credit or debit amount.
Reconciliation statement is the statement which is sent by the junior branches (mentioned
earlier) to the senior branches showing the outstanding figure. If the outstanding figure is
similar to the senior branch then it is okay (both the debit and the credit side would be
similar) and the reconciliation statement is sent to the particular senior branch. But if the
figures differs from the junior branch finds out where there remains the problems. There
may some causes for which outstanding figures may differ. In that case, the junior branch
34
sends another statement named as Supplementary Reconciliation Schedule mentioning
the causes of the difference.
The information which is included in the Supplementary Reconciliation Schedule is
as follows:
Date of Statement or Ledger entry
Description
Statement debits not yet credited to ledger
Ledger debits not yet credited on statement
Ledger credits not yet debited on statement
Amount
Remarks
Date item closed
Initial
3.11 General Section
Various types of voucher come to this section from several departments (such as Deposits
Department). At first, there happens register entry then these goes for computer posting.
One of the most important tasks that are performed by this section is to inform the daily
deposit posting, bills payable and total loans and advances to the head office. At the
opining of the working day’s transaction this information (previous working day’s) must
be sent to the particular department of head office.
Computer Handling
In the opening of the working day concerned officer of the general section prints out
various types of statement and affairs about various transaction of the previous day, such
as:
Daily Statement of Affairs
Cash-cum Day Book
General Ledger
Transaction Listing
35
Daily Statement of Affairs:
This statement shows the overall position of a branch on a particular day. It holds the
information on each and every particular account. This statement, first part, holds asset
accounts and liability accounts. In asset side, the information regarding the following
account for BCBL, Dilkusha Branch is shown as follows:
CASH AND BANK BALANCE:
Foreign currency in hand
Cash in hand
Stamps in hand
Bangladesh bank
Other bank
Investment
ADVANCES:
Loans (ABCB)
Loans (General)
Staff House Building
All Other Loans (Staff)
Loans Ag. Import Merchandise
Loans Ag. Trust Receipts
Loans Ag. Packing credits
Loans Ag. House Buildings (General)
Temporary overdraft (OTD)
Overdraft secured
Cash Credit
Inland Bills Purchased
PAD (cash):
PAD (AID/LOAN/GRANT/BARTER)
Foreign Bills Parched (FBP)
Local DOC Bills Purchased)
36
PAD (Inland)
FIXED ASSETS:
Building and Property
Vehicles
Furniture and fixtures
OTHER ASSETS:
Stock of Stationary
Suspense Account
Advance Deposits
Sundry Assets
Clearing house
INTER BRANCH TRANSACRION CONTRA ACCOUNTS:
Bills Lodged (Local)
Foreign Bills Lodged
Local Document Bill purchased (LDBP)
Customer Liability L.G.
Customer Liability L.G. (Cash)
Customer Liability L.G. (Foreign)
Customer Liability L.G. (AID/GRANT/BARTER)
Customer Foreign Bill Purchased (FDBP)
Local doc bills Purchased (LDBP)
PAD (Inland)
Building and Property
Vehicles
Furniture and Fixtures
Stock of Stationary
Suspense Account
Advance Deposits
37
Sundry assets
Clearing House
Inter Branch Transaction
Bills Lodged(Local)
Foreign Bill Lodged
Customer Liability L.G
Customer Liability L.G (Cash)
Customer Liability L.G (Foreign)
Customer Liability L.G (AID/GRANT/BARTER)
Liability L.C. Bill Accept EDF
Customer Liability L.C. (Inland)
Customer Liability L.C. (Bills Accepted)
Customer Liability L/C. (EDF)
Expenditure
The information which is shown on the liability side of the Daily Statement of Affairs for
BCBL, Mouchak branch is as follows:
DEPOSIT:
Current Account
Over- used Fixed Deposit
Sundry Deposit
Saving Deposits
Short Term Deposits
Fixed Deposits
Bearer’s Certificate of Deposits
Foreign Currency Deposits
Deposits form Bank
RFCD:
Savings insurance Scheme (SIS)
Monthly Savings Scheme (MSS)
38
BILLS PAYABLE:
Payment Order Issued
Pay slip issued
DD Issued Foreign
INTEREST SUSPENSE ACCOUNT:
Interest Suspense Account
ADJUSTING ACCOUNT CRADIT:
Adjusting Account Credit
Borrowing from banks
Bangladesh Bank
Other banks
INTER BRANCH TRANSACTION:
Inter Branch Transaction
CONTRA ACCOUNT:
Inland Bills for Collection
Foreign Bills for Collection
Foreign Document Bills for Collection
Banker’s Liability LG
Banker’s Liability CC (Cash)
Banker’s Liability for LG (Foreign)
Banker’s Liability LG (Foreign)
Banker’s Liability CC (AID/GRANT/BARTER)
Banker’s Liability LC Bills Accept EDF
Banker’s Liability LC (Inland)
Banker’s Liability LC (Back to Back)
Banker’s Liability LC (Bill Accepted)
Banker’s Liability LC (EDF)
Income
39
TOTAL:At the end of the first part there are some other information as well; such as:
Total deposit
Bills payable
Total advances
Number of current account
Number of saving account
Number of FDR
Number of loans and advances account
Number of SIS (Savings Insurances Scheme) Accounts.
Number of MSS (Monthly Saving Scheme) account
Number of other Account
In the second portion of the Daily Statement of Affairs there is some other information.
In Debit side the following information are include:
Assets or Liability with other banks
Amount of overdraft Secured Loans (particular)
Head-wise Amount of Various Cash credit
Head-wise Amount of Various Fixed Assets
Head-wise Amount of Suspense Account
Head-wise Amount of Sundry Assets
In credit side the information which are as follows:
Head-wise Sundry Deposit Amount
Sundry Creditors Account
FCBPR (1 and 2)
Margin on LG
Margin on Export Bill (LBCBP)
Export Bill (LA) and Others
40
Cash-cum Day Book
This statement shows the position of Cash receipts and disbursement, payment and
receipt by clearing and transfer payment and receipt by clearing and transfer payment and
receipt transfer. It holds debit and credit side. It also shows the total number of vouchers .
This is a consolidated statement of all accounts where total amount are is shown against
the particular account head. The accounts which are shown in “particular” column are as
follows:
Current Deposit Account
Sundry Deposit Account
Savings Bank Deposits
Short Term Deposits
Fixed Deposits
Payment Order Issued
Pay Slip Issued
Loans against Pickings Credit
Overdraft Secured
Cash Credit
Inland Bills Secured
PAD (Cash)
Foreign Bills Purchased (FBP)
Local Document Bill Purchased (LDBP)
Sundry Assets
Inter Branch Transaction
Expense Account
Income Account
Besides the above information there are also others in the statement; such as:
Debit and Credit transaction-amount of Cash
Debit and Credit transaction-amount of Transfer
Number of Debit and Credit Voucher
41
General Ledger
General Ledger is the statement that shows the net difference between the previous day’s
Balance and present day’s balance of each account of assets and liabilities for the branch.
present day’s debit and credits balance and net difference amount between previous day’s
balance and present day’s balance.
Transaction Listing
It is the Document of every day’s head wise transaction with particular account suppose,
Mr. X is a cash credit (general) account holder, and Mr. Y is also account holder, if the
same types of credit they both made transaction. In this case, the transaction listing would
show both the transactions with the transaction number, account number, account
heading , the amount of the transaction etc .
Each and every bit of activity of the branch is reflected here .This statement shows the
following information.
Voucher number.
Types of transaction(whether it is depositing transaction or withdrawal
transaction)
Code number of the transaction
Whether the Transaction is Debit credit balance and the amount
ID number.
Transaction number.
Account number.
Heading of the account
Particulars of the account
Statements that are by Account Department the Head Office:
The account Department has to send its various to the hand Office such as
Daily statement
Weekly Statement
42
Monthly Statement
Brief description every about this statement is as follows:
1. Daily statement:
In this statement every branch has to send it’s every day last resources position to its
Head office.
2.Weekly Statement:
In weekly statement every branch sends all the particulars of two types of deposit.
Time Deposit
Demand Deposit
3. Monthly Statement:
Every branch has to send monthly statement to the Head Office in earlier past of the
Month. In this statement there are all particulars of every accounts, how income the
branch is generating, how much expenditure they are making, how much loans and
advance they are providing to the parties, how much recovery has been achieved, how
much loans and advance they are providing to the parties, how much recovery has been
achieved, how much loans has stacked-up, how much deposit has been collected, what is
the performance of the branch, etc. are include in the monthly statement.
Dispatch Section
The literal meaning of the term “Dispatch” is to send away hastily/quickly or to receive
an official message. There are two types of dispatch maintained by the dispatch section.
Dispatch of Letter
Dispatch of Telegram
For convenient of the work dispatch for letter has been classified into two groups mainly:
Inward Mail
Outward Mail
43
Outward mail is again classified into:
Ordinary Letter
Registered Letter/Registered Parcel
Each branch will maintain a deposit account with the local telegram office to which the
amount of initial deposit will be paid by debiting to the charge Account under advice to
account division where a record of all such deposit paid by branches are maintained. The
receipt for the deposit will be recorded in the branch document register and retained with
other documents.
3.9 SWOT Analysis:
The Bank’s strength and competitive capabilities can be shown by the SWOT analysis.
The SWOT analysis is grounded in the basic principle that strategy-making efforts must
aim at producing a good fit between a company's resource capability and its external
situation.
The SWOT analysis
of Bangladesh
Commerce Bank Limited is as follows:
Potential Resource Strengths
Good reputation with high image.
44
SWOT
Analysis
Identify the
company’s
market
opportunities.
Identify external
threats to the
company’s future
business
prospects.
Identify Company
resource strengths
and competitive
capabilities.
Identify Company
resource
weaknesses and
competitive
deficiencies.
Strong financial base to grow the business.
Better service quality relative to rivals.
Newly recruited marketing executives.
Employee turnover is lower than that of its rival.
Reasonably well trained man power.
Potential Resource Weaknesses
Limited geographic coverage
Conservative approach for providing loans and advances.
High cost of fund
Long hierarchy
Time consuming decision making process
Potential Company Opportunities
Opportunity to expand geographically within Bangladesh.
Taking advantage of emerging new technologies in Banking, especially online
ATM, Internet Banking, etc
Market for sophisticated and improved service providers
Expanding the bank’s financial product line to meet a broader range of customer
needs.
Faster fund disbursement
Customer loyalty
Borrowers are trustworthy
Opportunity to take market share away from rivals by offering new innovative
product or services.
Potential External Threats
Entry of new commercial banks, leasing companies and merchant bank etc. they
all are competitors.
45
Competitors are offering innovative new product and services regularly. Matching
them is really hard.
Costly new regulatory requirements.
Limited branch networking
Strong presence of International banks
Govt.’s plan to raise the reserve requirement
Growing bargaining power of customers.
Devaluation of local currency.
3.10 Conclusion:
From the overall study of Bangladesh Commerce Bank Limited, it can be concluded that,
excellent results of the past years have reaffirmed the organizational preparedness to meet
the challenges buoyantly. The bank is aware of its commitment to offer Excellence in
banking service to its customers and shareholders, as the bank is confident that it will
deliver it. The bank is looking forward to launch a state-of-the-art technology to automate
the whole banking and transaction system. This will allow all the connected branches to
share information. Besides this, to manage the Credit Card and ATM operations, the
Bank has created a card division. It deals in marketing of cards, research and develops
innovative ideas to improve services, support branches with customer queries.
Bangladesh Commerce bank is also working on centralizing customer information
system. In order to implement this system Bangladesh Commerce Bank is reviewing
various reputed banking solutions and its features. The profitability and productivity of
the Bank shows a positive trend to indicate the sound financial condition of the bank.
With better management capability and improved administrative support in place, the
bank should poise not only to retain its present performance but also to make further
improvements in future.
3.11 Action Plan of the BCBL:
Now some action plan based on the problem of the study are given below.
46
In cash department to ensure more prompt service and to reduce risk an
electronic scanning machine should be installed to verify signature on the
cheques.
The officer of front desk should well mannered and of pleasing personality.
They should be more professional in their work.
The officers of the different department should be well trained. The organisation
could arrange training program for them in their training institute.
Out-station cheques and instruments should be sent for collection on the same
day by registered post.
In case of instruments received for collection form out station branches,
payment should be effected by the following working day. Intermission/advice
thereof should be communicated promptly.
Balance confirmation on quarterly basic must be sent to CD/SB Account
holders. Statements of account and passbook, if requested for, must be provided
to clients.
Counter should be neat clean and counter personnel should be smart, tidy and
well groomed.
When the customer approaches bank personnel with a problem, which is
actually related to him, the customer should not be avoided. Rather he should be
guided to the relevant person.
Special emphasis must give for collecting credit report and status of the
borrowers when loan exceeds more than fifty thousand.
Strict supervision must be adopted in case of high risk borrowers. Time to time
visit to the project should be done by the bank official.
All the PC’s should be modernized.
4.0 Practical Experience Gathered Through Doing Internship:
47
This report is based on practical working experience at The Bangladesh Commerce Bank
Limited as a part of internship program. The Bangladesh Commerce Bank Limited is a
scheduled Bank under private sector. The Bank started commercial banking operations
since inception. The main function of the bank is intermediation i.e. collecting funds from
the surplus units of the economy in the form of deposit and mobilizing deposit to the
deficit units of the economy in the form of credit. In internship program course students
have to prepare an internship Report at the end of the semester .This term paper based on
activities of the general banking system in Bangladesh. The report is prepared on
Practical Orientation in general banking system. I try to highlight the activities that
performed by Bangladesh Commerce Bank Ltd. Mouchak branch and also the activities
of whole Bangladesh Commerce Bank Ltd. I try my best to highlight every department of
different activities that I learn during the preparation of the report. But there is some
limitations collect the brief information about each and every department. Here I show
the history and background of BCBL its corporate social responsibility and most of the
activities of general banking system.
5.0 Findings:
48
The location of the BCBL, Mouchak Branch is quite awkward for deposit
mobilization, and the external appearance is not that much attractive.
Though the space of the branch is much extended, so different function can be
done very easily but I think the overall decoration of the entire branch is
necessarily to be reconstructed for attraction actual and potential customers in
competitive market.
Accounts opening department is required to be well furnished with modern desk
and computers.
Most of the officers, who work with computer, are not so well trained. If
sometimes any problem arises they take time to overcome it.
Payments against instructions are faster.
Front desk needs another permanents officer to perform the job quickly.
The bank use software named Flora office which is good but it need lots of
improvement better and provide faster service to the customer.
Though the bank personnel are very busy with their own activities, even then I
found them quit co-operative while completing this report.
6.0 Conclusion:
I was authorized to prepare a report on General Banking of Bangladesh Commerce Bank
Ltd. for partial fulfillment of my course requirement. I choose Bangladesh Commerce
Bank Limited, Mouchak branch due to convenient where I worked as an intern for three-
month period. This report has been prepared based on my practical experience on the
day-to-day banking activities. This is a great experience for me to have exposure in the
practical field.
6.1 Recommendations for further researchers:
49
For the purpose of the study data and information have been collected from both primary
and secondary sources. The relevant information collected from primary sources is
collected in an informal way. My work experience in Bangladesh Commerce Bank Ltd.
helped me a lot. Besides this, regular conversations with many Bangladesh Commerce
Bank officials, suggestions from personnel of Bangladesh Commerce Bank Ltd. official
meetings, presentations are the sources for primary information. The secondary sources
for data and information collection were published annual reports, monthly financial
newsletters of Bangladesh Commerce Bank, Bangladesh Bank report and websites of
Bangladesh commerce Bank Ltd.
6.2 References:
Bangladesh Commerce Bank, Mouchak Branch .
Head office of Bangladesh Commerce Bank Ltd.
Annual Report of Bangladesh Commerce Bank Ltd.
www.bcblbd.com
5.1 Appendix:
50
Bangladesh Commerce Bank LimitedHighlights of the Overall Activities of the Bank
For the Years 2010 and 2009
Sl. No.
Particular 2010 2009
01 Paid up Capital 1988742800 92000000002 Total Capital 2237842232 108148547903 Surplus/(deficit) Capital 237842232 (918514521)04 Total Assets 15578360165 942781949005 Total Deposits 12187614460 760497526606 Total Loans and Advances 8266020064 625620168007 Total Contingent Liabilities and Commitments 802832032 37854654008 Advances Deposits Ratio (%) 79.73 86.8309 Classified Loans to Advance Ratio (%) 13.18 23.7410 Profit After Tax and Provision 63308582 4130609711 Classified Advance 1068041000 148506635312 Provision Kept against Classified Advance 367105466 27884833413 Surplus/(Deficit) Provision (341092757) (605937769)14 Cost of Fund (%) 8.22% 9.92%15 Interest Earning Assets 7197979064 4771135327
16 Non Interest Earning Assets 6908059378 394662509117 Return on Investment (ROI)% 12.14 10.1118 Return on Assets(ROA)% 0.41 0.4419 Income from Investment 178700106 7175152920 Earning per share 3.18 4.4921 Profit per share 3.18 4.4922 Price-Earnings Ratio (Times) 31 22
