1

Overall Banking Performance of Bangladesh Commerce Bank Ltd

Internship Report on

Overall Banking Performance of Bangladesh Commerce Bank Ltd

SUBMITTED TO Annis Uddin Ahamed Vice President Bangladesh Commerce Bank Limited Zigatola Branch

SUBMITTED BY Tanvir Ahamed Bachelor of Business Administration (Major in Finance) ID NO: 082-070-025 Presidency University

Date of Submission: 22 December, 2011

Letter of Transmittal

22 December, 2011

To Annis Uddin Ahamed Vice President Bangladesh Commerce Bank Limited

Sub: Submission of Internship Report. Dear Sir, With immense pleasure, I am submitting my internship report on Overall Banking Performance of Bangladesh Commerce Bank Limited, which was assigned to me as a part of my BBA program. I have truly enjoyed my three months internship program with Bangladesh Commerce Bank Ltd., Zigatola Branch and highly appreciate their co-operation in this regard. Despite some limitation, I tried my best to make the report a complete one. May I, therefore, pray and hope that you would be kind enough to accept my internship report and oblige there by.

Yours Sincerely,

Tanvir Ahamed Bachelor of Business Administration Presidency University

Interns Declaration

I am Tanvir Ahamed a student of Bachelor of Business Administration,(Major in Finance) from Presidency University, hereby I declare that the internship report titled Overall Banking Performance of Bangladesh Commerce Bank Limited is prepared after the completion of my internship at Bangladesh Commerce Bank Limited, Zigatola Branch, 25/1(1st Floor), Zigatola, Dhanmondi, Dhaka1209. I also declare that the internship report is prepared for academic purpose only and is my original work under the extensive supervision and guidance of Md. Didarul Alam (Executive Officer), Bangladesh Commerce Bank Limited and Alamgir Hossain (Lecturer) of Moazzam Hossain School of Business, Presidency University.

Sincerely yours TANVIR AHAMED Student of Moazzam Hossain School of Business (Major in Finance) ID: 082-070-025 Bachelor of Business Administration

Presidency University

Table of Content
Content Introduction Objective of the Study Scope of the study Methodology Sources of Data Limitation of the study Organizational overview History of Bangladesh Commerce Bank Ltd About Bangladesh commerce Bank Ltd Present Status of BCBL Vision of Bangladesh commerce Bank Ltd Mission of Bangladesh commerce Bank Ltd General Banking of BCBL Introduction General Banking Bill Collection Account Opening Section Classification of Customer 4-10 4-5 6 6-9 10 10 11-50 11 11-12 12-13 13 14 Page No. 1-3 1 2 2 2 3

Different types of A/C of BCBL Documents required for opening new account Account opening procedure Precautionary Measures of A/C Opening Formalities for opening Current and STD A/C Formalities for opening Private foreign currency A/C Issue of Duplicate cheque book Formalities maintained for closing an account Interest rate on deposit Learning of This Section Clearing Section Local Remittance Section Telegraphic Transfer (TT) Demand Draft ( DD ) Pay Order Learning of This Section Cash Function of cash department Cash Received tools Cash Receiving Procedure Cash Payment tools Cash Payment Procedure Accounts Department Loans and Advances Introduction

14 15 15 16 16 17 18 18-19 19-21 22 23 23-24 24-25 26-31 31-33 33-34 3434 34-35 36 36 36-37 37-38

39

Managers Concern How to locate purpose How to locate security How to locate borrower Advance Secured and Unsecured Function of Advance Department Types of Loan Process of Loan Any Branch Banking Overall Performance of BCBL Deposits and other accounts Asset Portfolio Asset Types of Deposit Loans and Advances SWOT Analysis Findings Recommendation Conclusion Acronym Bibliography Appendix 59-60 61 62 63

39 39 39-40 40-41 41 42 43-49 49-50 51 52-55 52 53 53 54 54-55 56-57 58

64-85

List of illustration
Serial No. Content Page No.

Figure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Table 1 2 3 4 5 6 7 8 Types of different deposit interest rate Interest rate of different schemes Interest rate of Monthly Saving Scheme Interest rate of commercial loan Interest rate of Term loan Interest rate of Working Capital loan Interest rate of agricultural Loan Interest rate of house building loan 20 21 21 44 46 46 46 47 Organization Structure General banking function Local remittance types Procedure of Issuing TT Procedure of Issuing DD Cash receiving procedure Cash payment procedure Loans types Overall deposits of BCBL Asset portfolio of BCBL Asset of BCBL Different type deposits of BCBL Loan and advances of BCBL Loan and advances matrix of BCBL 7 12 24 25 27 35 36 43 52 53 53 54 54 55

9 10

Interest rate of different types of loan Interest rate of staff loan

48 49

Acknowledgement

First of all I am highly grateful to almighty Allah who gave me the power and blesses to complete this report within a short period successfully. I would like to express my gratitude to all the people that were involved both directly and indirectly in the preparation of this report. I apologize to the people whose names that I have not mentioned, and their contribution is highly appreciated by me. Then I express my deep gratefulness to my academic supervisor Mr. Alamgir Hossain Lecturer, Business Faculty, Presidency University for guiding me and for giving me the opportunity to initiate this report. More specifically, I would like to thank his for imparting his time and wisdom. I want to thank all the officials of Bangladesh Commerce Bank Limited that were involved. I would especially like to thank Mr. Anis Uddin Ahamed (VP) and Mr. Didarul Alam (EO) of Zigatola Branch for giving me time and sharing their thoughts and insights regarding their bank as a whole. I would like to thank them for giving me the required information to commence this report and for providing the permission to do the required research work. I also would like to give my gratitude to a very important person who has made it all happen for me at Bangladesh Commerce Bank Limited - Mr. S.A. Chowdhury (Managing Director). Here again I have to mention who receive me as a member of their Banking family in introduce with me whom I worked last three months. I would like to express my deep sense of gratitude and thank to all officials and members for all their continuous guidance valuable knowledge and suggestion during my Internship Program.

Executive Summary

The report is a prepared as part of practical orientation of BBA program a description of all activities done by Bangladesh Commerce Bank Ltd., Zigatola branch. The report is lively narration of various banking activities like General Banking, loans and advance management and any branch banking service. As a conventional bank branch it has a general banking section where the primary task of deposit collection, maintenance of accounts, cash and all local services are done. It performs the job of fund management on behalf of the whole bank. Other main duty of the department is maintenance of the accounts and dealing with the clearinghouse. The loans and advance section is in charge of proper disbursement of the funds to productive as well as profitable ventures. Any branch banking service is unique feature of that bank. The customers who have an account holder of that bank, they will transact any branch and enjoying the mobilization of service. In this age when management requires proper flow of accurate information to run an organization successfully than the banks way of information handling is quite outdated from the view point of sophisticated management information science. Facts and figures of the branch clearly indicate that the overall banking performance of Bangladesh Commerce Bank Limited is as well run and the trends of graphs show a sign of improvement and expansion of activity in all spears of banking.

Introduction
A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time.

All over the world the element of banking has been changing speedily due to technological innovation and globalization. Banking in Bangladesh has to keep pace with the global change. Now banks must complete in the market place both with local institution as well as foreign ones. 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 and appropriate manpower structure and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation.

Objective of the Study

General Objectives This study is intended for providing me invaluable practical knowledge about banking operation system in Bangladesh. The prime objective of the study is to examine the performance of Bangladesh Commerce Bank Ltd. Specific Objective To have an exposure on the banking environment of Bangladesh. To review the consumer banking service and operating system of Bangladesh Commerce Bank Ltd. To evaluate the factors affecting performance of the Bank. To suggest the better ways of enhancing the performance of the Bank. To make myself confident and active in future to finger my job.

Scope of the study

This report covers the organizational overview of the Bangladesh Commerce Bank Ltd, Management and Organizational Structure, functions performed by the Bangladesh Commerce Bank Ltd. It also covers overview of the general banking, identification of problems regarding general banking, of The Bangladesh Commerce Bank Ltd. Zigatola Branch.

Methodology
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 has been inevitable. However, wherever possibly primary data has been used. Data were also collected by interviewing the responsible officers and from some documents & statements printed by the bank and the website of BCBL. There have been used some statistical tools and graphical representation to find out different types of analytical results and interpretations.

Sources of Data
The following sources have been used for the purpose of gathering and collecting data as required. Primary data 1. Practical desk work. 2. Face to face conversation with the officers and clients. 3. Official record of BCBL. 4. Data collection of own supervision. Secondary Data 1. Annual report of BCBL. 2. Official files and folders, working papers, published and unpublished documents. 3. Website.

Limitation of the study

The limitation of the study is defined by the extensive of the facts covered by the study and those that left out. However, these limitations can be presented in the following lines:

The first limitation is that I failed to sketch the complete picture of the Bangladesh Commerce Banks activities at the period of my internship programmed. So I tried my best

to focus on what I have done and also tried to make it consistent with other part of the report. The second limitation is the lack of intellectual thought and analytical ability to make in a perfect one. I have to offset with quality due to time constraint, which apparently seems to be the most severe limitation. Another limitation of this report in non-availability of the most recent data & information of different activities of Bangladesh Commerce Bank policy of not disclosing some data & information for some reasons, which could be very much useful. In spite of all these limitations, I have tried to put the best effort as far as possible.

History of Bangladesh Commerce Bank Ltd

Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a banking company, it started banking operations on 16 September 1999 with an authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively. The share of the government of

Bangladesh in the bank's paid up capital is Tk 300 million while depositors of the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk 520 million. The balance of Tk 100 million is to be subscribed by banks and financial institutions under guidance and supervision by Bangladesh bank. The former BCIL was set up on 27 January 1986 as a non-bank financial institution. It continued its business till April 1992. Consequent upon its liquidity crisis, Bangladesh Bank suspended its operations in April 1992. As a result, the investors of the company suffered a lot and its employees became jobless. Both the depositors and the jobless employees launched a movement for reopening the company in some form or other and demanded return of their money and dues. With a view to safeguarding the interest of the depositors, employees and the general public, and to protecting the banking system itself from contagious effects of bank failures, the government of Bangladesh established the Bangladesh Commerce Bank on the ashes of the collapsed BCIL. Subsequently, the government on 8 February 1998 constituted a 10-member board of directors to organize and transform BCIL into BCBL and to administer the affairs of the bank. The 24 branches of BCIL were reopened as full-fledged branches of BCBL. The broad objective of the bank is to carry out all kinds of commercial banking activities and to respond quickly to the changing demands for modern banking products. In its three months of operations in 1999 starting on 16 September and ending on 31 December, BCBL had mobilized deposits of Tk 83 million. To augment its deposit collection further, BCBL introduced a number of deposit schemes suited to the needs of all classes of people in society. These schemes include a) Monthly Profit Based Deposit Scheme, b) Pension Saving Scheme, c) Interest Free Deposit and Loan Scheme, d) Consumers' Credit Scheme, and e) Money Plantation Against Saving Certificates. It has also offered competitive rates of interest on its deposit holdings, which varied between 7.75% and 12% since the inception of its operations through May 2000. Total deposits stood at Tk 1,294.2 million on 31 December 2000, when its gross loans and advances amounted to Tk 1,311 million.

The first priority of the bank in 1999 and 2000 was the recovery of the past loans of the BCIL. It has managed to recover Tk 523.3 million in cash and Tk 1,788 million by adjustment against past liabilities. The bank is overburdened with the liabilities and the non-performing classified loans of BCIL. The bank also suffered losses in the years 1999 and 2000 and was not able to maintain necessary provisions for classified loans. Investment of the bank has increased from Tk 20 million in 1999 to Tk 95 million in 2000, mainly in government Treasury bills. Because of the huge stuck up loans inherited from the BCIL, the bank's credit-deposit ratio stood at 101.30%. Total assets of BCBL, including the Tk 1,423.99 million of former BCIL stood at Tk 3,763.7 million on 31 December 2000. The bank's off-balance-sheet reserve was only Tk 95.8 million, a figure which has contributed little to the increase of its asset-mix. In 2000, BCBL maintained liquid assets of Tk 1,052.6, a sum hardly sufficient to meet its accumulated short-term/current obligations. On the other hand, statutory liquid assets of the bank were 15.08% in 2000, which is below the 20% SLR requirement envisaged by Bangladesh Bank. Because BCBL had absorbed huge amount of liabilities and non-performing assets of BCIL, it was not possible for the bank to make net profits during the short period of its existence in the new set-up. The bank is managed by a 9-member board of directors appointed by the government. A total of 590 officers and other staff work in the head office and the 27 branches of the bank. It has inherited a training institute from BCIL. This institute is being reorganized to provide training to its employees in modern banking services.

About Bangladesh Commerce Bank Ltd Bangladesh Commerce Bank Limited is one of the potential commercial bank of Bangladesh with Private-Government share. BCBL is consistently supporting the economic activates of the country since its inception in 1998. The bank covers all the areas of corporate/commercial, retail/personal and SME banking business.

Bangladesh Commerce Bank Limited is undergoing major restructuring to modernize its systems and process for sustainable growth. Bangladesh Commerce Bank Limited (BCBL) was established by the act no. 12 of 1997, passed by the Parliament of the Peoples 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 Peoples Bank with a Mission. Present Status of BCBL BCBL is one of the largest private sectors Bank in Bangladesh with years of experience. Adaptations of modern technology both in terms of equipment of banking practice ensure efficient service to clients. (a) Capital structure of BCBL The bank was incorporated as a public limited company under the companies act 1994. The authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively. The share of the government of Bangladesh in the bank's paid up capital is Tk 300 million while depositors of the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk 520 million. The balance of Tk 100 million is to be subscribed by banks and financial institutions under guidance and supervision by Bangladesh Bank.

(b) Hierarchy of position in BCBL

Figure 1: Organization Structure

(c) Information Technology in Automation All the 27 branches have been running successfully with the in-house developed software. The bank has entered into the internet world through its website www.bcblbd.com. Polaris Software

(POLS.BO), a leading global Financial Technology Company, Sonali Bank Ltd., the largest Nationalized Commercial Bank in Bangladesh and Bangladesh Commerce Bank Ltd. (BCBL) signed a Memorandum of understand to form a Joint Venture Company Sonali Polaris
Financial Technology Ltd (SPFTL) where BCBL will hold a 10% stake in the new

company.Through signing this contract, BCBL has chosen Intellect Core Banking Solution (CBS) to replace their existing solutions. All the branches of Bangladesh commerce bank ltd. are use FLORA banking software. (d) Objectives & Targets 1. Offering maximum services to the clients and shareholders as per rules. 2. Providing services by diversification to the door step of people in the economic sector. 3. Ensuring maximum utilization of professional manpower by developing skill & creativeness. 4. Creating savings attitude among various classes of people. 5. Increasing investment for keeping the market economy operative. 6. Earning confidence of all concerned by easing foreign trade and international transaction. 7. Assessment of consumer need and provide short term and long term finance on the basis of real need. 8. Proper maintenance of Banks resources through appropriate investment and active participation of various welfare programs of the country. 9. Activate capital market by more participation in the capital market. 10. Involves customers with modern banking through proper usage of modern information technology. 11. Providing best services to the customers to establishing firm discipline in Bank management and building long term relation. 12. Achievement of economic growth through various socio-economic activities. 13. Building image of the Bank home and abroad. 14. Upgrading socio-economic aspects of Bangladesh financing Agro-based Prakalpa. (e) Corporate Information at a glance

Registered Name:

Bangladesh Commerce Bank Ltd. (BCBL)

Date of Registration: Inauguration of Zigatola Branch: Registered Head office:

01.06.1998 (As per the Company Act. 1994, the Bank Company Act. 1991 & Act 12 of 1997) September 16, 1999 19, Rajuk Avenue Taranga Complex Motijheel C/A, Dhaka 1000

Phone No: Fax No: Telex: E-mail: Web site: SWIFT: Date of incorporation: Authorized Capital: Paid up capital: Number of Branches: Chairman: Managing Director: Auditor:

9559831-2, 9571581, and 9563757 88-02-9568218 642557 BCBL BJ, bcbl@bdmail.net www.bcblbd.com BCBLBDDH 1 June 1998 200.00 Crore 105.79 Crore 27(Twenty Seven) Mr. A.Q. Siddiqui S. A. Chowdhury HODA VASI CHOWDHURY & CO.

Vision of Bangladesh Commerce Bank Ltd

Become a bank of first choice by the customers with meaningful contributions to the society. Mission of Bangladesh Commerce Bank Ltd Bangladesh Commerce Bank Limited is committed to fulfill its customers needs and become their first choice in banking so that a sustainable growth, reasonable return and contribution to the socioeconomic development of the country can be ensured with a motivated and professional workforce.

General Banking of Bangladesh Commerce Bank Ltd

Introduction BCBL survive and succeed 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. BCBL has contributed in the economy of the country through their dedicated services, business partnership and customer care over the last twelve years. They have seen enormous changes over the period and have continued to keep on adopting to changes their journey ahead. They has been widely acclaimed by the business communicate from small entrepreneurs to large traders and industrial conglomerates. BCBL conducts all types of commercial banking activities. The bank involve in most of the areas of commercial banking operation. BCBL has acted as the lead arranger in raising term loan for a number of projects under syndicate finance and also participate in some case under such financing arrangement. They also providing personal credit, service related to local and foreign remittances and several other products. BCBL entered the market at a time when economic policy environment of the country is poised for higher levels of business activities and growth. The prevailing macroeconomic management and governments determination to carry on reforms in the banking sector provide a supporting and encouraging environment. General Banking General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services every day, general banking is also known as retail banking.

According to World Bank, the general people understand the depositing and withdrawal of money and credit financing. But Bank performs numerous types of services. To deal these services bank

has to maintain many register/ ledger and documents. Some different jobs that waive the General banking have shown in the following diagram.

Figure 2 General banking function Bill Collection Bangladesh commerce bank ltd. Zigatola branch also collect DESA, WASA, TNT, and Gas bill. People of Zigatola, Hazaribag, Tenarimor and Rayerbazar area pay their DESA, WASA, TNT, and Gas bill from that branch.

How to collect Bill

Bangladesh commerce bank ltd. Zigatola branch collect the DESA, WASA, TNT, and Gas bill through cash counter from 10 a.m. to 1 p.m. When cash officer collect those bill they are attached 5 TK. revenue stamp to DESA, WASA, and Gas bill in order of government.

Arrange the Bill

The Cash officer of Zigatola Branch when collect the bill they are serially put the scroll number on that bill to the purpose of security.

Posted the Bill

After collect the bill those bill were posted in speed shit and print 2 copy, one copy kept in office and another copy send to the government office.

Account Opening Section When a customer want to open a deposit account in bank, he/she will have to go the A/C opening section to know the rules and regulations for opening account and to have the set of documents required. Since BCBL is an authorized dealer it can open deposit A/Cs denominated both in Taka and approved foreign currencies. Deposits are like raw materials out of which credits are created. Deposit accounts are one of the important sources of funds. In order to attract customers the banks offer different facilities to various types of account holders. Competition in accepting deposits takes two forms: (a) Improvement in customer service (b) Offer a higher rate of interest. In our country PCBs and foreign banks are appreciated to attract deposit because of their superior customer services. BCBL Zigatola office branch with its traditions customer service approaches faces difficulties to draw attention of new customers. Main functions of account opening are given below: To give answers to the queries regarding account opening To supply the appropriate type of account opening form To put a/c number from a computerized sheet on advice of new account To input date into computer from a/c opening form. To maintain and update the a/c opening file for different types of accounts. To maintain a register for cash type of recording details of a/c opening To supply deposit slip books and cheque book on requisition To act on request for closing and transferring of deposit a/c To act on request for closing and transferring of deposit a/c

Classification of Customer a) Individual (personal)

b) Proprietorship (Sole traders) c) Partnership firms (Register or Unregistered) d) Joint Stock Companies ( Private Limited and Public Limited ) e) Municipalities/Municipal Corporations/Local Bodies etc. f) Clubs / Societies / Associations /School / Colleges / Universities etc. g) Executors /Administrators h) Trustees i) Illiterate persons j) Constituted Attorney k) Wage Earners

Different types of A/C of BCBL Zigatola Branch

1. Current A/C: Interest free and generously withdrawal. 2. Saving Bank A/C: Interest bearing and checkable with some restriction 3. Short Term deposit: Usually interest bearing and with draw able on short notice. 4. Fixed deposit: Interest bearing and definite period like one year or six month. 5. Non Resident foreign currency deposit: All non residents of Bangladesh can open

this interest bearing account in the form of term deposit with a minimum amount of $1000 or equivalent.
6. Private Foreign Currency A/C: Bangladeshi National residing abroad or foreign

nationals may open this a/c with deposit mode from inward.
7. Convertible Take Amount: A type of non-interest bearing current a/c designed

especially for foreigners living here.

8. Private foreign Currency A/C: Bangladeshi nationals residing abroad or foreign

nationals may open this a/c with deposit mode from inward.

Documents required for opening new account

1. Documents Common for all types of Account & Customers

Advise of New Account Specimen signature cards Account Opening Agreement Form Photographs of Account Holder Deposit Slips Book Cheque book Requisition slips Letter of mandate is required where necessary.

Account opening procedure

a. Applying in a printed application in a certain stipulated form printed by the bank itself. b. Supply a set of printed forms required for opening the account which will normally include i) ii) iii) iv) v) Advise of new Account Specimen Signature Cards Account Agreement Deposit slip Book Cheque Book Requisition slip

b. The account should properly introduced by any one of the following i) ii) iii) An existing Current Account holder of the bank Officials of the Bank not below the rank of an Assistant officer A respectable person of the locality well known to the Manager or Sub- Manger of the Branch concerned. c. A number of photographs which must be duly attested by the introducer in front of the manager or responsible officer. The signature of the introducer must be attested. After being scrutinize the application and the manager or authorized officer may give his consent to open the account. d. A package with deposit book, cheque book with a unique A/C No. given to the Customer maintaining the A/C opening register book.

Precautionary Measures of A/C Opening

a. Soon after the opening of a new Account a letter of Thanks should be sent to the introducer. b. A letter of thanks as per prescribed should also be sent to the account holder immediately upon opening the account, under registered post with a/c for verification of postal address as well as genuineness of the Account holder. c. In case of a new account is opened a proprietorship / partnership firm, having local business address, a responsible officer of the branch will inform the firm to obtain the confidential report on the firm. Formalities for opening Current A/C and STD A/C These accounts are meant for business firms and corporate bodies. Initial deposit requirement is Tk 5000 in addition to common documents required to open a saving a/c following additional documents will be required for depending upon the nature of the organization. Joint Account of two or more persons Mandate for Operation of Account: A clear authority by all the joint A/C holders containing instructions as to who will operate the account and how the account is to be operated should be obtained. The mandate should mention the name of the persons authorized to draw check. In case of death, insanity, insolvency of one or more of the joint a/c holders, the authority will cease to operate: For sole traders i) ii) iii) iv) Trade license A certificate with tax identification number from income tax authority Seal In case of current account an agreement to accept all responsibilities for all over draws, interest cost and expenditures.

For Partnership firms i) Trade license

ii) iii) iv) v) vi)

Notarized deed of partnership A mended in agreement form regarding operation of the account signed by the entire partnership firm Sale/ Stump of the firms 2 copy photo of all partners National ID card photocopy for all partners.

For Private and Public Limited Companies i) ii) iii) iv) v) vi) vii) Memorandum and Articles of association Certificate of incorporation Certificate of commencement of business if its Public limited Copy of board resolution to open a/c certificate by the chairman and secretary Power of attorney to operate a/c in favor of any one or more of directors. Balance sheet and income statement List of Directors and their address and chairman certificate.

Formalities for opening Private foreign currency A/C

Foreign Currency account may be opened in US dollar, Pound Sterling, Douche Mark and Japanese Yen. Credit may be made to this A/C against inward remittance from abroad. Usually this a/c operated like a current a/c but no checkbook are issued against his a/c. Withdrawals may be made through withdrawals slips. Interest may be paid on this a/c if it is maintained in the form of term deposit for a minimum of 90 Days Bangladeshis living abroad can open even without initial deposit. A nominee can be appointed.

Documents required

When an eligible person is interested to open an F/C account his passport is to be checked and signature verified. When he is staying abroad his signature is to be verified and attested by i) ii) iii) Bangladeshi embassy on that country His banker in this country Notary public of that country

Following documents are needed to:

i)

Photocopy of 1st 4 pages of passport Photocopy of visa and work permit Nominees photo and account no. Declaration of source of income. National ID card photocopy for both a/c holder& nominee.

ii) iii) iv) v)

Issue of Duplicate cheque book

Duplicate cheque book in lieu of lost one should be issued only when A/C holder personally approaches the bank with an application. Fresh Cheque Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required excise duty only with prior approval of manager of the branch. Cheque series number of the new cheque book should be recorded in ledger card signature card as usual. Series number of lost cheque book should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment.

Formalities maintained for closing an account

a) The customer may inform the bank in writing of his/her intension to close the account. b) The customer has to apply to the branch in charge for closing the account. Then the in charge will remark on the account closing application for closing the account.

c) By drawing a cheque of the whole amount and a nil balance confirmation to be taken from the account holder. d) Recover the unused cheque leaves and enter into the Broken cheque book register

e) Remove the account opening form, specimen signature card and all other papers relating to the closed account. f) Remarks of account closing at the ledger folio should be authenticated by the manager or supervising officials g) The banker may itself ask the customer to close the account when the banker finds that the account is not been operated for a long lime. h) If the account is not operated upon for 6 months then the banker will try to do the bilateral communication with the account holder. But if the banker does not get any response from the account holder then the account becomes Dormant account. i) If the is not the operated upon for 2 years then the account becomes inoperative account. j) A new register for unclaimed deposit account will be maintained called unclaimed deposit account. k) For withdrawal at any amount from tat account, permission from head office or controlling office wins is required.

Interest rate on deposits & Schemes Interest rate different types of deposit as prescribed by BCBL head office from time to time irrespective of size of deposit. In the below different type of deposits and schemes interest rate will be shown-

Table 2- Interest rate of different schemes Types o Interest Scheme Deposits 1. Savings Deposit (SD) Scheme Deposit Tenure Interest rate Nominal Interest Rate (Monthly) 8.00% 9.28% 9.45% 7.50% 9.17% 7.50% 9.06% 9.29% 7.25% 9.49% 9.20% 9.40% .9.15% 9.35% 4.00% 8.90% 9.00% 4.25% 4.50% 5.00% 6.00% . 11.00% 12.00% 12.50% 13.00% 12.00% 9.00% Table 1- Types of different deposit interest rate Installment Amount Payable at Maturity Amount Double i) Special rate for6wage earners, Any Amount & gmts. Workers (For non Cheq. Benefit Years housewives Double Scheme A/C) Triple Benefit 10 Years Any Amount Triple Scheme ii) Special rate for wage earners, housewives & gmts. Workers (For Cheq. A/C) Lakhpati Deposit 5 Years 1,320.00 1,00,000.00 Scheme 10 Years 515.00 1,00,000.00 iii) Rural Millionaire areas 10 Years 5,085.00 10,00,000.00 Deposit Scheme 15 Years 2,530.00 10,00,000.00 iv) Urban areas 15 Years Kotipoti Deposit(Cities & Other municipalities) 1,00,00,000.00 25,960.00 Scheme 20 Years 14,230.00 1,00,00,000.00 2. Special DepositDeposit (SND) 1,000.00 Notice 12 Years Marriage 2,60,410.00 Scheme 18 Years 1,000.00 5,57,860.00 i) Below 1.00 crore Years Education Savings 8 500.00 69,620.00 Scheme 12 Years 500.00 1,28,855.00 ii) From 1.00 crore to 25.00 crores iii) From 25.00 crore s to 50.00 crores iv) From 50.00 crores to 100.00 crores v) 100.00 crores and above 3. Fixed Deposit Receipt (FDR) i) 1 month to 2 months tenure ii) 3 months to 1 year tenure iii) 3 months to 1 year tenure (1.00 crore to 3.00 crore) iv) 3 months to 1 year tenure (3.00 crore and above) v) 1 year and above tenure (3.00 crore and above) 4. Pension Savings Scheme

Monthly Saving Scheme Amount to be deposited monthly Payable at maturity 3 Years 500 1000 5000 10000 20000 21,500 43,000 2,15,000 4,30,000 8,60,000 Payable at maturity 5 Years 41,000 82,000 4,10,000 8,20,000 16,40,000 Payable at maturity 7 Years 65,500 1,31,000 6,55,000 13,10,000 26,20,000 Payable at maturity 10 Years 1,15,000 2,30,000 11,50,000 23,00,000 46,00,000

Table 3- Interest rate of Monthly Saving Scheme Learning of This Section The signature of the account holder use in all banking activities. The customer may appoint nominee who can handle his account in case of holders death even in special circumstances with the permission of the account holder. Present and permanent address with fathers or husbands name of the concerned account holder to be recorded very carefully. The type of account, the prospective Customer wishes to open should be determined. In case of proprietorship or partnership business account proper trade license in the name of business firm should be obtained. The required Account Number for the Account from the Account Opening register should be obtained. Signature and a/c number of the introducer and gets the signature properly verified by an authorized officer of the bank. The deposit slip properly filled in and signed by the customer in duplicate should be collected.

Have to place the signature cards, advice of new account, a copy of deposit slip photographs and other necessary papers/documents etc in a file and obtain approval of the authorized officer for opening the new account. Get each signature of the Customer/Introducer on the Advice of New a/c and on the signature cards admitted by the authorized officer of the Bank using a rubber stamp. When delivering the cheque book account number, name of customer branch seal on each leaf of the cheque book have to check carefully.

Clearing Section

The Cheque Clearing Section of BCBL Zigatola office branch sends Inter Branch Debit Advice (IBDA) to the Head office on the receiving day of the instruments. The main Branch takes those instruments to the Clearing House on the following day. If the instrument is dishonored, Head office of BCBL sends IBDA to the BCBL, Zigatola Office branch. The total procedure takes three days if everything goes orderly. The Cheque Clearing Section of BCBL, Zigatola Office branch sends Outward Bills for Collection (OBC) to the concerned Paying Bank to get Inter Branch Credit Advice (IBCA) from the paying Bank. If the instruments are dishonored by the Paying Bank, the Paying Bank returns it to the BCBL, Local Officer Branch describing why the instruments are dishonored. The procedure takes around a week.

The Cheque Clearing Section of BCBL, Zigatola office branch sends Outward Bills for Collection (OBC) to the concerned paying Branch to get Inter Branch Credit Advice (IBCA) from the paying returns it to the BCBL, Local Office branch describing why the instrument is dishonored. Local Remittance Section Local Remittance is used to transfer of funds denominated in Bangladesh Taka between banks within the country. It is an order from the Issuing branch to the Drawee Bank/ Branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by Telex / Telegram and funds are paid to the beneficiary through his account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch. The cash department does remittance of cash. Instruments of local remittances at BCBL branches are follows

Figure 3 Local remittance types

Telegraphic Transfer (TT)

Telegraphic Transfer is a quick mode of remitting funds over telex or Telegram. Now this term has used as Telephonic Transfer also which is faster than previous one for money transfer. Following points have to consider for the TT

1. On receipt of T.T payment instructions the following entries are passed by the Drawee branch if the T.T is found to be correct on verification of Test Number. i) Dr. BCBL General A/C Cr Remittance Awaiting Disposal- T.T Payable A/c ii) Dr Remittance Awaiting Disposal-T.T Payable A/c Cr Clients Account P.O. A/C. If the beneficiary does not maintain any a/c with the Drawee Branch a P.O is issued in favor of the payee and sent to his banker/local address as stated.

2. Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.T are to be properly recorded in this Register duly authenticated. A separate type of T.T confirmatory advice is sent to the Drawee branch on the same day. On receipt of the T.T Confirmatory advice/confirmation copy of telegram from the issuing branch, the particulars of the T.T are verified with reference to particulars already recoded in the T.T payable Register.

The Confirmatory advice are kept attached with the relative Ticket No further responding entry is required to be passed on receipt of such confirmation copy. On payment of T.T the particulars are to be incorporated in the Extracts Responding Debit entries as usual as usual and sent to HORC.
Customers fill up a printed Procedure of Issuing TT application form. Cash Dept. receive cash with commission @ 15% telex charge Tk. 40 and issue debit ticket to L/R

On receiving debit ticket L.R dept. make entries into the register & issue TT and issuing credit advice in triplicate

LR dept prepares telex massage in duplicate for drawee branch and arrange to send the same through test key

Figure 4 - Procedure of Issuing TT

Demand Draft (DD)

Demand Draft is an instrument containing an order of the Issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself. Precautions for Demand Draft 1. Get the application form properly filled up and signed by the applicant. 2. Complete the lower portion of the Application form meant for Banks Use. 3. Calculate the total amount payable including Banks commission/charges etc. 4. If a cheque is presented for the payment of the DD officer should get the cheque duly passed for payment by the competent authority and record the particulars of DD on the back of the cheque. 5. If the purchaser desires his account with the branch to be debited for the amount of DD the officer should get the A/c holders signature verified properly, from signature card on record of the branch and debit clients a/c for the total amount including commission charges etc.

6. If cash deposit is desired, request the purchaser to deposit the money at the Tellers counter. 7. The teller, after processing the application form, cash or cheque, will validate the Application form. 8. The first copy of the Application form is treated as debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the Applicant as customers copy.

Each branch maintains a running control serial number of their own for issuance of DD on each Drawee Branch. This control serial number should be introduced at the beginning or each year which will continue till the end of the year.

Procedure of issuing D.D

Customers fill up a printed Application form.

Cash dept. Receive cash with commission and postage stamps.

Cash dept. verified the signature of the client and checks the balance of a/c L/R dept. Debit customers a/c

On receiving IDT or applicant form with signature verified L/R make entries in to the register and issue inter bank credit advice in favor of Drawee branch

Figure 5 - Procedure of Issuing DD The Remittance Department maintains prescribed DD Issue Register. All the required particulars of all DD issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Draft of Tk. 50,000/- and above, branches shall put a test number in Red-Ink on the upper portion of the drafts so that the drawee branch can

immediately make payment of the DD on presentation after getting the Test agreed, if otherwise found in order. Issuing a Duplicate DD Duplicate DD should not normally be issued unless thoroughly satisfactory evidence is produced regarding loss a draft. If the DD reported lost/stolen, a duplicate draft may be issued by the branch on receipt of a written request from the purchaser. Before issuing a duplicate DD the branch should observe the following: 1. Verify the Purchase signature on the request letter from the signature appearing on the original application form. 2. Immediately issue a stop payment instruction to the Drawee branch under advice to Head Office and obtain confirmation of non-payment of the DD acquisition. 3. After the Drawee branch has acknowledgement the stop payment order and confirmed that the local draft in acquisition remains unpaid at their and confirmed that the local draft in acquisition remains unpaid at their end, the Issuing branch should obtain an Indemnity Bond on stamped paper/letter of indemnity branch should obtain an Indemnity Bond on stamped paper/letter of indemnity as per prescribed format from the purchase duly signed by hi,. The branch will therefore write to Head Office, for their approval to issue a duplicate draft. 4. The Head Office on receipt of request from the issuing branch will immediately issue a caution circular to all the branches regarding the loss of the local draft asking them to record stop payment. 5. The Head Office will therefore issue clearance to the Issuing branch for issuing a Duplicate draft in lieu of original reported lost. 6. Receipt of clearance from Head Office, the issuing branch will issue a completely fresh draft marking clearly the words duplicate issued in lieu of original draft no. dated.in bold letter on the top of the front page of the draft. The printer serial number on the draft should not however be struck off. Intimation should be given to the drawee branch furnishing full particulars of the

Duplicate draft. In case of issue of duplicate foreign draft (F.D.D) the Reconciliation Department, Head Office (HORC) should also be informed. 7. The particulars of the duplicate draft resemble those of the original draft in all respects that is all the particulars to the duplicate draft must be identical with those in the original draft. No further (Inter Branch Credit Advice) IBCA is to be issued for the duplicate draft. 8. Prescribed duplicate issuance charge is to be recovered for issuing the duplicate and credited to income a/c.

Cancellation of Demand Draft The following procedure should be followed for cancellation of a DD: 1) The purchase should submit a written request for cancellation of the DD attaching therewith the original DD. 2) The Signature of the purchase will have to be verified from the original application form on record. 3) Manager/ Sub-Managers permission is to be obtained before refunding the amount on cancellation. 4) Prescribed cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded. Commission/Postage etc. Charge recovered for issuing the DD should not be refunded. 5) The DD should be affixed with a stamps canceled under proper authentication and the authorized offices signature on the DD should also canceled with Red in but in no case should be torn. The canceled DD should be kept with the relevant ticket. 6) The original entries are to be reversed giving proper narration. An (Inter Breach Debit Advice) IBDA for the canceled DD should be issued on the Drawee branch. 7) Cancellation of the DD should also record in the L.D Issue Register.

Payment of DD 1. When a DD is presented for payment at the paying branch its details are to be carefully examined with references to the following points.

i) ii) iii)

Whether the draft is drawn on their branch Whether the draft is crossed or not Amount of a crossed draft is not paid in cash to the payee but to be paid to his account with a bank. Two authorized officials of the Issuing branch must have signed draft. Their signatures are to be verified from specimen signature book let to be sure that the draft is genuine. The verifier should out his initials in red ink against the authorized signature in the draft.

iv) v) vi) vii)

Endorsement on the back of the draft must be regular in case the draft is presented through clearing. The amount of the draft should not exceed the amount protect graphed written in red ink on the top of the draft. The payee is to be properly identified in case of case payment. The particulars of the draft i.e. the draft number date amount and the name of payee, should be verified from the DD payable Register.

2. On payment the DD is affixed with the branches Paid stamps and signatures there on are canceled with red ink. The data of payment is recorded in the DD payable register necessary accounting entries are also passed and recorded in the books of Account. With IBCA Dr Remittance Awaiting Disposal L.D payable a/c Cr. Clients Account/Tellers Cash With IBCA a. After receiving without Advice a/c

Cr. Clients a/c/Tellers Cash b. After receiving the IBCA i. Dr. BCBL general A/c Cr Remittances Awaiting Deposit DD payable a/c ii. Dr Remittances Awaiting Disposal DD payable a/c Cr DD Paid without Awaiting Disposal DD payable a/c.

As the draft is issued by the Issuing branch, the payee or purchase of the draft cannot give stop payment instructions to the Drawee branch. If a paying branch receives any request from the payee/endorsee or the purchase of a draft for stopping payment of the draft, it will ask them to approach the issuing branch for the purpose. The paying branch should however exercise necessary precaution in this regard. Only the Issuing branch can issue instructions for stop payment of draft under special circumstances. However, if a draft on which stop payment order is received from a court of law the same should be carried out. Only the purchase can request the Issuing branch for cancellation of a L.D. The drawee branch cannot cancel a L.D. The Drawee branch can accept cancellation instructions only from the issuing branch. When a draft is cancelled by the Issuing branch the relative entry is the BCBL general a/c is reversed and IBDA from the Issuing branch, the Drawee branch should reverse the original liability entries the strength of the IBDA and record suitable remarks in the L.D payable Register Related IBCA of the draft.

Pay Order

a. Pay order issue process

For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form (in triplicate) properly filled up and duly signed by application. The processing of the pay order Application form, despot of cash/cheque at the Tellers country and finally issuing a order etc, are similar to those of processing of L.D (loan Draft) Application.

As in case of L.D each branch should use a running control serial number of their own for issuance of a pay order. This control serial number should be introduced at the beginning of each year which will continue till the end of the year. A fresh number should be introduced at the beginning of the next calendar year and so on.
b. Charges

For issuing each pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/c as usual.

c. Entries

Dr. Tellers Cash/clients a/c Cr pays Order a/c Cr commission a/c

d. P.O issue Register

The remittance Department will issue the pay Orders duly crossed A/c payee and will enter the particulars of the P.O Issued in the prescribed P.O Register duly authenticated.
e. Payment of pay orders

As the P. Os crossed A/c payee, the same are presented to the Issuing branch for payment either through clearing of for credit to the clients A/c. Os when presented for payment are processed in the Remittance Department. On making payment, the relative entry in the P.O Register is marked of by entering the date of payment in the P.O Register duly authenticated. The paid instrument is treated as Debit Ticket.
f. Refund of Pay Order

The following procedure should be followed for refund of pay order by cancellation

1. The purchase should submit a written request for refund of pay order by cancellation attaching therewith the original pay order 2. The signature of the purchaser will have to be verified from the original application form on record. 3. Manager/Sub-managers prior permission is to be obtained before refunding the amount of pay order cancellation. 4. Prescribed cancellation charge is to be recovered from the application and only the amount of the pay order less cancellation charge should be refunded. 5. The pay order should be affixed with stamps cancelled under should also be canceled with RED ink but in no case should be torn. The canceled pay order should be kept with the relevant Ticket. 6. The original entries are to be reversed with proper narrations. 7. Cancellation of the pay Order should also be recorded in the pay order Issue register #Issue and payment of Pay-order: Strictly speaking pay-order is not meant for remittance. Because it is payable by the issuing branch. An order is issued to facilitate fund transfer within a clearing area. Dr. Tellers cash/Client A/c Cr. Manages cheque Cr. Commission Up to Tk.1000 Tk.1001-100000 Tk.100, 001-500000 Tk. 23 Tk. 36 Tk. 58

When paying against pay-order following entries are passed Dr. Managers cheque Cr Cash/Client A/c Learning of This Section

The Applicant have to carefully fills up the relevant part of the prescribed Application form in triplicate, duly signs the same and then gives it to the Remittance Department Responsible Officer have to carefully fill up the commission part for Banks use and request the Applicant to deposit necessary cash or cheque at the Tellers counter. The teller after processing the application form, Cash or cheque has to validate the Application form. The first copy is treated as Debit Ticket while the second copy is treated as Credit Ticket and sent to Remittance Department for further processing. The third copy is handed over to the applicant as customers copy. While transferring money using the mobile responsible officer must be careful about the phone code of each branch and note the name of responding officer of that branch. Communication through mobile must carefully handled otherwise any fraud transaction may happen. Necessary Advice has to prepare carefully considering the date, amount, branch code, customer name, transaction code etc. Debit Advice is sent to the clients a/c is debited for the amount of T.T

Cash Section The cash section performs some important functions like cash payment and cash received. Except these two major functions it also performs some other functions like opening of cash every day balance calculation.

Function of cash department

Cash department is the busiest and the most important department of the branch. All cash receipts and payment including inter branch or interbank cash transactions are done under the cash department. Accounting and recording process of this department are very scientific, transparent and modern. All cash transactions are put into computer in batches and balances are matched. Unlike traditional banking, separate accounts are maintained for vault cash a/c and tellers cash a/c respectively.

There is no strict division of work among tellers. Each of them is doing both receipt and payment. This is possible because cash is preparing separate tellers cash position.

Cash Received tools

Cash is received in following forms or slips i) ii) iii) iv) v) Deposit slips (for deposit into clients account) IBCA For inter branch cash transaction I.D.T (inter department ticket) Prize Bond Credit voucher

Cash department not only receives cash but also checks and drafts which are deposited for collection. Cash proof sheet from each teller and cash transaction with branches or BB (Bangladesh Bank) are recorded on reserve sheet to find out closing cash reserve. At the end of the day a summary cash position is prepared and matched with actual cash position and computer balance report. If their closing position along with the subsidiary register book then the transactions of the day is ok.

Cash Receiving Procedure

Counting the notes and checking denominations given on the back of the deposit slips, credit ticket etc. etc.

Received cash by the teller at cash counter on deposit slip, credit ticket etc.

Filling cash sheet

the proof

Having the original and the duplicate copy of deposit slips signed by the cash officer

Returning the duplicate copy to the client

Figure 6 Cash receiving procedure Cash proof sheet from cash teller and each transaction are recorded on reserve sheet to find out closing cash reserve. At the end of the day a summery cash position is prepared and checked with actual position and computer balance report. If the three closing position matches, then the transaction of the day are ok.

Cash Payment tools

1) Cheque, draft, pay order, TT 2) Debit voucher (Realization of FDR proceeds) 3) Debit tickets 4) IBDA (Inter Branch Debit Advice) issued from the branch. 5) IBCA (Inter Branch Credit Advice) issued by another bank of Head office. Vault Limited TK. 1.00 Core Cheque Payment authority to cash in charge TK 1 lac

Cash Payment Procedure

Presenting Check (By order holder) or by

Scrutiny of Cheque by the teller

Verification whether checked by the teller

Checking computerizes Statement of Balance of A/C by the cash in charge

Approving/canceling the Cheque by the sign of cash in charge

Figure 7 Cash payment procedure When cash is transferred to any other branch the following a/c entries are made with the passing of inter branch debit advice. Dr. BCBL general A/C Cr. Reserve cash

When cash is received from any other branch of BCBL following entries are made Dr. Reserve Cash Cr. Tellers Cash When tellers take cash from reserve following entries for total receipt Dr. Reserve Cash Cr Teller Cash For total cash received against Inter Department Ticket (IDT) following entries are made: Dr. Teller Cash Cr. IDT At the end of the day for all payments against cheques and debit vouchers following single entries are made: Cr Tellers a/c Accounts Department Accounts Department is called as the nerve Centre of the bank. In banking business transactions are done every day and these transactions are to be recorded properly and systematically as the

banks deal with the depositors money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose functions are to check the mistakes in passing vouchers or wrong entries or fraud of forgery. This department is called as Account Department. Besides the above, the bank has to prepare some internal statements as well some statutory statements which to be submitted to the central bank. Accounts Department prepares these statements also. The department has to submit some statements to the Head Office, which is also consolidated by the Head Office later on. The tasks of the department may be seen in two different angles: A. Daily Task: The routine daily tasks of the Accounts Departments are as follows, 1. Recording the transactions in the Clean cash books 2. Recording the transactions in general and subsidiary ledger 3. Preparing the daily position of the branch comprising of deposit and cash 4. Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately. 5. Making payment of all the expenses of the branch 6. Recording Inter branch fund transfer and providing according treatment in this regard. 7. Checking whether all the vouchers are correctly passed to ensure the conformity with the Activity Report, if otherwise making it correct by calling the respective official to rectify the vouchers. 8. Recording of the vouchers in the Vouchers Register. 9. Packing of the correct vouchers according to the debit voucher and the credit voucher. B. Periodical Task: The routine periodical tasks performed by the department are as follows: 1. Preparing the monthly salary statement for the employees. 2. Publishing the basic data of the branch 3. Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R) 4. Preparing the weekly positions for the branch comprising of the break of sector wise deposit, credit.

5. Preparing the weekly position for the branch comprising of denomination wise statement of cash in tills. 6. Preparing the quarterly statement (SBS-2 and SBS-3) where SBS-2 shows classifications of deposits excluding inter bank deposit, deposits under wage earners scheme and withdrawals from deposit account and SBS-3 shows classifications of advances (excluding inter bank) and classification of bills purchased and discounted during the quarter. 7. Preparing the budget for the branch by fixing the target regarding profit and deposit.

Loans and Advances

Introduction Major source of income of a bank is the earning from credit. Borrower selection is the main and prime task of this department. Advancing loans is the primary function of the commercial banks. Without loans countrys industrial and commercial development is not possible. Therefore, smooth loan system in banking sector is a catalyst for economic development of a country. Managers Concern In the process of loan Manager has to ensure three things: 1) How to locate purpose 2) How to locate security 3) How to locate borrower How to locate purpose Manger has to ensure that the loan will generate adequate cash. For that matter the loan should be engaged in productive activities. Such an employment will increase economic activities, promote

trade and commerce, create employment avenues and increase movement of goods and flow of cash. This flow of cash is known in the banking concept as cash generation. If there is enough cash generation, funds will automatically flow into the borrowers accounts with the bank and will show a satisfactory turnover in accounts which the lending bank always demands. This is why the managers speculation should be making the highest cash through the employment of the advances. How to locate security As soon as the evaluation of purpose is done manager will examine and evaluate in the following manner the securities offered by the prospective borrower: a) Security is the source of information on the prospective borrower. If offered are valuable properties like land, building, shares of stocks or pledged goods, these will offer adequate information about the borrower as to his financial position. b) If securities are hypothecated stocks of raw materials for production, these will offer adequate information about the borrower as to his ability or capacity to utilities c) Securities (tangible or intangible) offer a yardstick for measuring the extent of involvement of the borrower himself. The lending banks investment of funds is a joint venture of the banker and the borrower. The securities offered are the borrowers portion of involvement i.e. his equity or capital. Thus the greater is his involvement, the better for the banks. The borrower in that case will think twice that if the business goes wrong, it is who will suffer most. Thus it will be in his own interest that he will avail and utilize the loan as per agreed stipulations. Thus the best way to safeguard the lending banks interest is, as far as possible to maximize the banks commitment. d) The branch Managers responsibility as to provide security is also to see how much control he will be in a position to exercise on the entire stocks of the borrower.

How to locate borrower In appraising a loan process, the selection of the prospective borrower is the most vital point. The borrower is the real actor and must be in position to achieve the purpose for which the loan has been requested. In selecting ideal borrower, the branch manager thus assumes the greatest responsibility. Capital is another point to indicate the borrowers position. He should be given loan

in proportion to this own investment as working capital. As a general rule a bank should not sanction loan more than the investment of the borrower. Then the consideration of borrowers capacity - whether the borrower can utilize the funds or not. Of all the qualifications of a prospective borrower, character is undoubtedly the greatest. While the capacity and capital are the factors upon which depends his ability to repay the money advanced, the character of the borrower indicates his intention to repay the loan.

To select the ideal borrower the following points have to consider:

a) Branch records

The manager may have first hand information on a prospective borrower by a reference to his records. The turnover of his financial dealings is reflected in the ledger folios of his branch.
b) Borrowers Record

The prospective borrower may be advised to submit his books of accounts balance sheet etc. for examination by the manager. These financial tools reflect the position of his assets and liabilities and a fair idea about the capital and capacity of the borrower.
c) Personal Enquires

As an individual the borrower must be a desirable person in the society. He must have integrity. There are some factors such as the sobriety, the promptness of payment goods habits personality, the ability and the willingness to carry a project Advance Secured and Unsecured

1. Secured Advance

Secured advance are those advances which are secured by tangible securities of adequate value over which the bank has either absolute or constructive control in addition to the personal guarantee of the customer.
2. Unsecured Advance

The advances which are granted to a constituent of undoubted standing and reliability and only in exceptional circumstances and for short period without any tangible security are called unsecured advances.

Functions of Advance Department

Ensuring that funds are disbursed only after compliance with terms and conditions or required documents received. Make sure that the bank has always valid and current loan documentation. Ensuring that the collateral security is adequate at times to support the loans. Keeping the loan documentation under safe custody. Ensuring that the bank receives sufficient valid insurance cover whenever required from a recognized insurance company. Monitoring the receipt of periodical receivable. Debiting the client for all charges, interest etc. Maintaining the central liability records for all extensions of credit and balancing the totals with General Ledger.

 LOAN & ADVANCES

Figure 8 Loans types

Types of Loan Bangladesh Commerce Bank Zigatola Branch has the following loan schemes Commercial Loan

Term Loan Working Capital Loan Agricultural Loan House Building Loan Staff Loan(BCBL) Other Loan

Commercial Loan

The limited loans with expiry date of loan payment, which can be transacted without any particular payment schedule, are termed as continuous loan. Following are the various categories: 1. CC (Hypo) 2. SOD (Real Estate/ FO/ Shares) 3. LTR (Loan Against Trust Receipt) 4. LIM (Loan Against Imported Merchandise) a. b. Commercial Loan CC (Hypo) CC (Pledge) Interest Rate 16.00% 16.00%

c. d.

SOD (RE) LTR/LIM

16.00% 16.00% (2% penal interest will be charged for overdue LTRs) Table 4 Interest rate of commercial loan

Cash Credit (CC) a. Cash credit is given through the Cash Credit (CC) account. b. Cash credit account is basically a current account, however a little difference exist between them. The distinction between a current account a CC account is that the former is intended to be an account with credit balance and the latter an account for drawing of advances. c. Operation of cash credit is as same as overdraft. The purpose of cash credit is to meet working capital needs of traders, farmers, and industrialists. Over Draft (OD) a. Overdrafts are those drawings which are allowed by the banker in excess of the balance in the account up to a specified amount for definite period. b. Generally it is given to the businessmen to maintain their business activities. c. Any deposit in the SOD account is treated as repayment of overdraft. d. Generally provided against FDR, any primary security etc.
Term Loan

The loans which are to be paid within limited term with a particular payment schedule are known as term loan. Following are the various categories: (a) Term loans up to 5 years

1. Project Financing (b) Term loan over 5 years 1. Project Financing Short term Agro and Micro Credit The short-term loans which are listed in yearly loan disbursement schedule served by the loan department of Bangladesh Bank are termed as short-term agricultural loan and micro-credit. The loan given to the agricultural sector for less than 12 months is also included in this category. By short-term loan we mean the loan below Tk 10,000 to be paid within 12 months. Term Loan a. b. c. Large & Medium Scale Industries Small Scale Enterprise (Secured) Small Scale Enterprise (Unsecured) Table 5 - Interest rate of Term loan
Working Capital Loan

Interest Rate 13.00% 17.00% 18.00%

Corporate Bodies & Large Industries SME a. b. c. Working Capital Loan Large & Medium Scale Industries Small Scale Enterprise (Secured) Small Scale Enterprise (Unsecured) Table 6 - Interest rate of Term loan
Agricultural Loan

Interest Rate 14.00% 15.00% 17.00% 18.00%

Small Agricultural Loan Loan to agro based industries

Agricultural Loans Agricultural Loans Interest Rate 13.00%

Loan to NGO/ MFIs

Table 7 Interest rate of agricultural Loan

House Building Loan

Residential Commercial a. b. House Building Loan Residential Commercial Table 8 - Interest rate of house building loan Interest Rate 18.00% 18.00%

Others Loan

Transport Loan Loan to Non Banking Financial Institution Syndicate/ Club financing Loan against financial obligation Export Loan Loan against bill purchase/ Share Purchase Consumer credit scheme Special loan for service holder Loan for educated unemployed women

Table 9 - Interest rate of different types of loan Other Loan Transport Loan (Private use/Commercial use) Non Banking Financial Institution (NBFI) Syndicate/Club Finance Loan Against FDR Export Loan Interest Rate 16.00% 15.00% As per Lead Bank agreement Above 3.00% over FDR rate (minimum 14.00%) 7.00%

Trade Finance (For rice, wheat, edible oil, pulse, peas, onion, dates & 12.00% sugar) Bill purchase / Loan against Share (SODS) Consumer Credit Scheme (CCS) Special Scheme for Service Holders Special Loan for unemployed women Women Entrepreneurs with Govt. Re-fiance Prime Customer 17.00% 18.00% 17.00% 16.00% 10.00% 15.00%

Staff Loan
1.

Staff House Building Loan SHBL 120 times of the basic salary is provided as SHBL Bank Rate + 1%, interest is charged to the employee Repayment is adjusted from their monthly salary Repayment is made at equal monthly installment

a. b. c. d.

2.

Staff Loan Against Provident Fund SPF 10% of basic is contributed by employee in every month 10% of basic is also contributed to the PF by the Bank

a. b.

c. d.

Repayment is adjusted from their monthly salary Maximum Sanction from PF

3. Car Loan

a. b. b.

Staff Loan Car Provident Fund House Building

Interest Rate Bank Rate (5.00%) 9.50% 8.00% Table 10 - Interest rate of staff loan

Process of Loan

Application Applicant applies for the loan in the prescribed form of the bank describing the types and purpose of loan. Sanction a. Collecting credit information about the applicant to determine the credit worthiness of the borrower. Sources of information i. Personal Investigation, Confidential Report from other bank, Head

Office/Branch/Chamber of Commerce. ii. CIB (Central Information Bureau) report from Central Bank.

b. Evaluation of compliance with its lending policy. c. Evaluating the proposed security d. If loan amount exceeds 50 lac then bank goes for LRA Analysis. e. LRA is must for the loan exceeding one crore as ordered by Bangladesh Bank. LRA has described at the end of this chapter. If everything is in accordance the loan is sanctioned Documentation

a. Then the bank prepares a loan proposal containing terms and conditions of loan for approval of H.O. or Manager. b. Takes the necessary papers and signatures from borrower Disbursement A loan Account is opened where Dr customer A/C. Cr Respective Loan A/C

Any Branch Banking Bangladesh commerce bank limited provide any branch banking service to their customer. Customers who have an account of Bangladesh commerce bank they are enjoy that service.

For ExampleA karim have an account holder of Dualutpur branch of BCBL, he want to draw money but now he stay in Dhaka, thats why in Dhaka any branch he will draw his preferable amount of money. He draws money from Zigatola branch. Then Zigatola branch how to provide that kind of service From Zigatola BranchBCBL General A/C Dr. At that time Dualutpur branchCustomer A/C Dr. BCBL General A/C- Cr.

If deposit the moneyFrom Zigatola BranchBCBL General A/C Cr. At that time Dualutpur branchCustomer A/C Cr. BCBL General A/C- Dr.

Overall Banking Performance of Bangladesh Commerce Bank limited Bangladesh commerce bank limited in Zigatola branch overall activities are explained, after that scenario I also represent the overall banking performance of Bangladesh commerce bank limited, which is reflect that the current position and growth among of the other commercial bank.

Deposits and other accounts At the end of December 2010, the deposit of the bank stood at TK. 1218.76 cores as against tk. 760.50 Core OF 2009. Showing a growth rate of 60.26% this may be considered a remarkable achievement in the backdrop of volatile market scenario of the country.

Figure 9- Overall deposits of BCBL

Asset Portfolio In 2010 Bangladesh commerce bank limited asset portfolio represent the bank current situation which is reflect that bank held in a competitive position to the other commercial bank.

Figure 10- Asset portfolio of BCBL Asset Asset position of Bangladesh commerce bank ltd. at December 2010 represent that the bank is creating a strong position in the banking sector of Bangladesh.

Figure 11- Asset of BCBL Types of Deposit

Bangladesh commerce bank limited gather fund from different types of deposits. The bank has attached top priority on the mobilization of low cost fund. The deposit mix of the bank as on 31 December 2010 was as follows:

Figure 12- Different type deposits of BCBL Loans and Advances The loans and advaces of the bank registered an impressive growth during the year 2010. The total loans and advances as on 31 december 2010 was Tk. 826.60 core as against Tk. 625.62 core during gthe correspondeing period of previous yeear showinhg an increase of 32.12%.

Figure 13- Loan and advances of BCBL

The bank gives top most priority to acquire quality assets and does appropriate lending risk analysis while approving commerecial and trade loan to cients. The advance matrix of thte bank as on 31 decmber 2010 was as follows:

Figure 14- Loan and advances matrix of BCBL

SWOT Analysis
SWOT is an acronym for the internal Strength and Weakness of a firm and the environmental Opportunity and Threat facing that firm. So if we consider Bangladesh Commerce Bank as a business firm and analyze its strength, weakness, opportunity and threat, the scenario will be as follows:
Strength

(a) Good management. (b) Cooperation with each other. (c) Usage of faster pc bank software. (d) Membership of SWIFT. (e) Good banker-customer relationship. (f) Online Banking services. (g) Strong financial position. (h) Strong position of CAMEL rating. (i) Huge business area. (j) Excellent monitoring and supervision. (k) Energetic as well as smart teamwork.
Weakness

(a) Lack of proper motivation, training and job rotation. (b) Lack of experience employees in junior level management. (c) Lack of own ATM services. (d) Tendency to leave the bank in quest of flexible environment.

 Opportunity

(a) Expand market. (b) Growth of sales service. (c) Change in political environment. (d) Lunching own ATM card.
Threat

(a) Different service of FCBs (Phone Banking / Home Banking) (b) Daily basis interest on deposit offered by HSBC. (c) Entrance of new PCBs .

Findings

I have find out some points by screening the whole study, which is expressed as major findings. I have analyzed the data sincerely and carefully and have tried to identify appropriate findings. Moreover, conversations with the BCBL officials were very significant for these findings. After overall appraisal of BCBL, the major findings are as follows:

Position: Bangladesh Commerce Bank Limited held competitive position in private sector banking operations of the country. Operational Orientation: Its major operations are development & welfare oriented. Management System: Management system of BCBL is fully democratic. Requirements of Bangladesh Bank: BCBL always maintains the rules declared by Bangladesh Bank. Training Facilities: BCBL provides training facilities to its officer of the bank and also provides executive development & internship program. Management Functions: The management functions (from planning to control) are not clearly present in their various activities. Computerization: Most of the activities are computerized. Manual Work: Paper-based works are still existed in branch. Decoration: It is one of the leading banks of Bangladesh but it has no attractive appearance in office environment.

Recommendation

In order to get competitive advantage & to deliver quality service, top management should try to modify the services. For the improvement of the service the following measures should be taken:

Customers Convenience: For customers convenience, BCBL should provide more personnel to deliver faster services to their honorable customer. Human Development: Development of human resources should be ensured to increase efficiency in work. Communication System: Ensure proper communication system and maintenance of files & machineries should modernize. Interest: More interest should be paid on deposit account so that customers are convinced to deposit their money in bank. R & D: Research & Development wing must be more extensive & rich. Strategy: Effective strategies must be undertaken against defaulter. Project Management: Project Management must be practiced in case of investing in the project. Feasibility study of the project, project planning, monitoring & evaluation should be undertaken. Managerial Function: BCBL must have to follow the management functions (from planning to control) strictly in all of their business activities and also operation the bank. Financial Analysis: Branch should have a separate section to analyze the financial statement for fining its liquidity, profitability & ownership ratios. Strict Rules for arrival and departure for the employee: Management should strict about the arrival and departure time for the employees. Job Rotation: In BCBL job rotation is fully absent job rotation is very important to make the entire employee efficient for all departments.

 Appreciation: No doubt that in BCBL female employees is more efficient and hard working than male employees. It is very important to appreciate them and give them proper respect because if they get the appreciation then they can increase their volume of work. It is not only for the female it is also important both for male and female employees. Some other important factor that should be focused on the development process Time consumed at service level should be minimized at optimum level. Evaluates customers needs from their perspective and explains logically the shortcomings. Improve office atmosphere to give customers better feeling. Use of effective MIS (Management information system). To deliver quality service top management should try to mitigate the gap between customers expectation & employees perception.

Conclusion
There are a number of nationalized and foreign banks operating their activities in Bangladesh. The BCBL is one of them. For the future planning and the successful operation in achieving in its BCBL goal in this current competitive environment this report can be a guideline. Bank always contributes towards the economic development of a country. BCBL, compared with other banks are contributing more by investing most of their funds in fruitful projects leading to increase in production. It is obvious that right thinking of this bank including establishing a successful network over the country and increasing resources, will be able to play a considerable role in the portfolio of development financing in the developing country like ours. BCBL continues to play its leading role in socio-economic development of the country as a companion of Independent Bangladesh. Besides its traditional function such as deposit mobilization, deployment of fund in trade, commerce, industry, agriculture, import & export business, outward and inward remittance as an agent of Bangladesh Batik of BCBL has emerged as the pioneer of playing key role in the country. Bangladesh Commerce Bank is a private bank but it has no attractive environment ii their branch and all branches are not computerized, even total cash are not properly use when this bank develop their all branch by attractive environment and computerized. On the other hand cash are properly used at that time this bank reached in the top-level private bank in our country. If the Bank cannot fulfill these things, they cannot run in the future with their competitors Bank.

Acronyms

BB BCBL BL CC C&F CIB CRF EPB ERC EXP Form IBCA IBCT IBDA IRC LIM LATR DIBOR OBC PAD SOD SWIFT TIN

Bangladesh Bank Bangladesh Commerce Bank Limited Bill of Lading Cash Credit Clearing & Forwarding Credit Information Bureau Clean Report Findings Export Promotion Bureau Export Registration Certificate Export Form Inter Branch Credit Advice Inter branch Credit Transaction Inter Branch Debit Advice Import Registration Certificate Loan against Imported Merchandise Loan against Trust Receipt Dhaka Inter Bank Offer Rate Outward Bills for Collection Payment against Document Secured Overdraft Society for Worldwide Interbank Financial Telecommunication Tax Identification Number

Bibliography

 Brigham, Eugene F Joel E. Houston, Fundamental of Financial Management, Tenth

Edition, Harcourt Publisher International Company, 2001. Basudevan, S.V., Theories of Commercial Banking, Reading Materials on Theory & Practice of Banking (B-101), Bangladesh Institute of Bank Management (BIBM), 2000. Others Diary-Diary has been maintained regularly to record all the activities of practical orientation.
Bangladesh Commerce Bank Limited, Annual Report 2008 Bangladesh Commerce Bank Limited, Financial Transactions Files.

Website

www.bcblbd.com www.bb.org.bd

Appendix

Board of Directors 1. Mr. A.Q. Siddiqui (Chairman) 2. Mr. Mahmudul Huq Bhuiyan (Director) 3. Mr. Md. Shafiqul Azam (Director) 4. Mr. Md. Emdadul Hoque (Director) 5. Mr. Rana Kaiser (Director) 6. Mr. Manowar Hossain (Director) Managing Director 7. Mr. Anis Ahmed (Director) Managing Director 8. Mr. Abbas Uddin Ahmed (Director) 9. Mr. Md. Humayun Kabir (Director) Managing Director 10. Dr. Md. Zillur Rahman (Director) Managing Director 11. S. A. Chowdhury (Managing Director) 12. Mr. Md. Humayun Kabir (Observer) General Manager

Bank Executive

SL 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Name Mr. S.A. Chowdhury Dr. Muhammad Asaduzzaman Mr. M.A. Motalib Chowdhury Mr. M Ebadat Hussain Mr. Md. Shamsuddin Ahmed Mr. Md. Ghulam Nabi Mr. Sagir Ahmed Mr. Salim Hasan Mr.K.M. Ashraf Hossain Mr. Md. Abul Hossain Mr. Md. Jahangir Alam Mr. Selim Ahmed Mr. S.M. Waliullah Mr. Ehsan Ahmed Rouf Mr. Anis Uddin Ahmed Mr. S.M. Reazur Rahman Mr. H. M. Abul Kalam Azad Mr. Md. Kamruzzaman Akand Mr. Md. Shafiqul Islam Mr. Md. Idris Ali Mr. Afzal Hossain Mr. Md. Abdul Halim Mr. S.M. Alamgir Mr. Dewan Md. Moniruzzaman Mr. Md. Shahadat Hossain Mr. Ali Azam Chowdhury Mr. Md. Kabir Ahmed Mr. Mushfique Hossain Mr. Syed Akhter Hossain Mr. Md. Enamul Hoque Mr. S.M. Showkat Ali Mr. Md. Nizamuddin Mr. Md. Saiful Islam Mr. Mbdul Munim Chowdhury Mr. Md. Mahabub Morshed

Designation MD DMD CEO* EVP SVP SVP SVP SVP SVP SVP VP VP VP VP VP VP VP VP VP VP VP VP VP VP VP VP AVP AVP AVP AVP AVP AVP AVP AVP AVP

Bangladesh Commmerce Bank Limited Balance Sheet 2010 TAKA PARTICULARS PROPERTY & ASSETS CASH Cash in Hand ( Including foreign Currencies) Balance with Bangladesh Bank and its agent bank ( s) (Including Foreign Currencies) BALANCE W ITH OTHER BANKS & FINANCIAL INSTITUTIONS In Bangladesh Outside Bangladesh MONEY AT CALL AND SHORT NOTICE INVESTMENTS Government Others LOANS AND ADVANCES BCBL Loan, Cash Cr edit and Over Draft etc. Bills Purchased and Discounted Loans & Advances BCI Total Loans and Advances Fixed Assets including premises and furniture and fixtures OTHER ASSETS NON-BANKING ASSETS TOTAL ASSETS LIABILITIES AND CAPITAL Borrowings from other Banks & Financial Institutions and agents DEPOSITS AND OTHER ACCOUNTS Current Deposit and Other Accounts etc. Savings Bank Deposits Fixed Deposits Short Term Deposits Deposit under different schemes Bills Payable Bank Deposit Other Deposits Deposits(BCI) OTHER LIABILITIES TOTAL LIABILITIES SHAREHOLDER'S EQUITY SHARE CAPITAL Paid-up-Capital Share Capital BCI Ltd. Revaluation Reser ve on DSE Member ship Statutory Reserve Other Reserve Revaluation Reser ve for HTM Securities Exchange Equalizaton Account Surplus/(Deficit) in Profit and Loss account Total Shareholder's Equity TOTAL LIABILITY AND SHAREHOLDER'S EQUITY 98,329,157 3,848,512 11,836,557 4,643,994 2,146,401,020 15,578,360,165 1,988,742,800 39,000,000 65,792,413 3,848,512 11,836,557 4,395,060 (26,127,843) 1,018,744,699 9,427,819,490 920,000,000 39,000,000 100,000,000 12,187,614,460 1,965,647,110 989,904,941 1,334,453,570 5,026,466,909 752,111,890 160,908,668 1,820,000,000 138,121,373 58,628,474 1,085,716,211 13,431,959,145 7,604,975,266 541,337,121 898,657,064 662,053,186 3,965,746,954 663,816,075 131,060,021 400,000,000 342,304,846 71,727,047 732,372,478 8,409,074,791 15,578,360,165 763,123,871 174,197,323 588,926,549 778,555,729 131,700,299 646,855,430 2009 TAKA 2008 TAKA

518,019,21

116,593,38

401,425,83

4,169,752,271 4,109,453,871 60,298,400 330,000,000 1,472,321,723 1,127,904,760 344,416,963 7,600,797,170 7,599,373,830 1,423,340 665,222,894 8,266,020,064 48,180,592 528,961,643 -

984,808,753 943,891,978 40,916,775 450,000,000 710,059,072 693,348,800 16,710,272 5,526,804,353 5,523,312,097 3,492,256 729,397,327 6,256,201,680 38,953,476 209,240,780 9,427,819,490

907,161,17

871,256,47

35,904,69

410,000,00

645,771,57

640,478,60

5,292,97

5,018,350,55

5,006,494,97

11,855,57 767,637,71

5,785,988,26

37,186,67

216,674,32

8,520,801,22

6,786,866,29

798,680,84 639,132,56

3,568,352,65 573,108,55 513,163,61

90,383,25

420,000,00

184,044,79

84,802,26 629,136,80

7,500,805,36

920,000,00 39,000,00

54,250,00

35,453,03

3,848,51 11,836,55

(44,392,23

1,019,995,86

8,520,801,22

Bangladesh Commerce Bank Limited Off Balance Sheet 2010 TAKA CONTINGENT LIABILITIES Contra entries (BCI) Letter of Guarentees Letter of Credit Bills for Collection Other contingent liability Case against the bank which not acknowledged by the bank TOTAL CONTINGENT LIABILITIES OTHER COMMITMENTS Documentary Credits and shor t term trade related transactions Forward assets purchased and forward deposits placed Undrawn note issuance and r evolving underwriting facilities Undrawn formal standby facilities, cr edit lines and other commitments Total TOTAL OFF-BALANCE SHEET ITEMS 887,255,654 946,065,162 13,231,321 100,834,581 634,746,923 67,250,528 71,192,301 8,872,556,554 13,231,321 104,024,022 250,975,065 23,547,453 554,287,301 946,065,162 2009 TAKA

B a n g la d e s h C o m m e r c e B a n k L i m i t e d P ro fit a n d L o ss A c c o u n ts

2010 TAKA O P E R A T IN G IN C O M E In te re st In c o m e L e s s : I n t e r e s t P a id o n D e p o s it s a n d B o r r o w in g s N e t In te re st In c o m e I n c o m e fr o m I n v e s t m e n t s C o m m is s io n , E x c h a n g e E a r n in g s & B r o k e r a g e O t h e r O p e r a t in g I n c o m e

2009 TAK A

2008 TAKA

2007 TAKA

9 2 6 ,5 5 5 ,7 7 7 6 2 1 ,1 4 9 ,0 3 3 3 0 5 ,4 0 6 ,7 4 4 1 7 8 ,7 0 0 ,1 0 6 9 0 ,9 3 3 ,6 9 7 4 2 ,7 4 0 ,6 7 6 3 1 2 ,3 7 4 ,4 7 9 6 1 7 ,7 8 1 ,2 2 3

9 0 5 ,5 5 6 ,2 4 0 5 5 2 ,9 0 7 ,0 0 5 3 5 2 ,6 4 9 ,2 3 5 7 1 ,7 5 1 ,5 2 9 4 3 ,6 1 9 ,2 9 6 2 1 ,8 5 0 ,6 8 9 1 3 7 ,2 2 1 ,5 1 4 4 8 9 ,8 7 0 ,7 4 9

6 3 4 ,8 0 0 ,6 3 4 5 2 3 ,1 0 4 ,8 9 1 1 1 1 ,6 9 5 ,7 4 3 4 8 ,5 2 8 ,8 8 1 3 7 ,0 8 8 ,3 4 8 1 7 ,6 1 1 ,5 2 9 1 0 3 ,2 2 8 ,7 5 8 2 1 4 ,9 2 4 ,5 0 1

5 1 0 ,9 6 2 ,3 8 1 4 3 8 ,6 0 7 ,4 2 4 7 2 ,3 5 4 ,9 5 7 2 5 ,7 3 2 ,3 1 8 2 9 ,2 4 0 ,9 9 6 8 ,8 9 7 ,2 0 2 6 3 ,8 7 0 ,5 1 6 1 3 6 ,2 2 5 ,4 7 3

T O T A L O P E R A T IN G IN C O M E (A ) O P E R A T IN G E X P E N S E S S a la r ie s a n d A llo w a n c e s R e n t s , T a x e s , I n s u r a n c e s , L ig h t in g e t c . L eg al E xp ense s P o s t a g e , S t a m p , T t e le c o m m u n ic a t io n e t c . S t a t io n e r y , P r in t in g , A d v e r t is e m e n t e t c . M a n a g in g D ir e c t o r 's s a la r y a n d a llo w a n c e s D ir e c t o r 's F e e A u d it & E v a lu a t io n F e e D e p r e c ia t io n & R e p a ir t o F ix e d A s s e t s O th e r E x p e n ses T o ta l O p e ra tin g E x p e n se s (B ) P r o fit/( L o s s ) b e fo r e P r o v is io n ( C ) = A - B P r o v is io n f o r L o a n s & A d v a n c e s P r o v is io n a g a in s t U n C la s s if ie d L o a n s O t h e r P r o v is io n s T O T A L P R O V IS IO N (D ) T O T A L P R O F IT /(L O S S ) B E F O R E T A X (C -D ) P R O V IS IO N F O R T A X P r o v is io n f o r t a x P r o v is io n f o r D e fe r r e d T a x N E T P R O F IT /(L O S S ) A F T E R T A X A P P R O P R IT A T IO N S S tatu to ry R e se rv e G e n e ra l R ese rv e D iv id e n d s e t c . R e ta in e d E a r n in g s/(L o ss ) c a r r ie d fo r w a r d E a rn in g p e r S h a re (E P S )

1 8 4 ,5 4 0 ,1 4 4 2 8 ,7 3 1 ,7 9 9 5 9 9 ,4 9 8 4 ,0 9 6 ,5 2 3 9 ,8 3 2 ,9 7 1 5 ,7 3 9 ,3 5 3 7 7 1 ,1 5 0 1 0 0 ,0 0 0 1 5 ,5 2 8 ,9 1 3 4 2 ,4 2 5 ,1 0 3 2 9 2 ,3 6 5 ,4 5 5 3 2 5 ,4 1 5 ,7 5 8 1 0 0 ,0 0 0 ,0 0 0 3 0 ,0 0 0 ,0 0 0 3 2 ,7 3 2 ,0 4 9 1 6 2 ,7 3 2 ,0 4 9 1 6 2 ,6 8 3 ,7 1 9 9 9 ,3 7 5 ,1 3 8 1 0 0 ,0 0 0 ,0 0 0 (6 2 4 ,8 6 2 ) 6 3 ,3 0 8 ,5 8 2

1 4 2 ,3 9 0 ,3 0 7 1 8 ,4 1 8 ,7 1 4 4 3 5 ,1 5 8 2 ,7 0 8 ,0 9 5 5 ,3 3 2 ,6 0 8 1 ,6 4 1 ,2 0 0 6 9 2 ,0 0 0 4 0 0 ,0 0 0 1 2 ,2 5 6 ,9 1 8 1 7 ,4 6 5 ,8 8 1 2 0 1 ,7 4 0 ,8 8 1 2 8 8 ,1 2 9 ,8 6 8 5 1 ,8 0 0 ,0 0 0 8 4 ,6 3 2 ,9 7 9 1 3 6 ,4 3 2 ,9 7 9 1 5 1 ,6 9 6 ,8 8 9 1 1 0 ,3 9 0 ,7 9 2 1 1 0 ,6 3 5 ,2 4 2 (2 4 4 ,4 5 0 ) 4 1 ,3 0 6 ,0 9 7

1 2 3 ,1 6 7 ,3 6 9 2 0 ,5 7 6 ,9 0 7 5 2 7 ,4 0 4 3 ,1 0 2 ,5 0 8 5 ,1 9 8 ,9 0 9 1 ,5 3 7 ,4 0 0 7 5 5 ,3 2 6 6 5 3 ,5 1 0 1 0 ,2 0 4 ,4 5 8 1 9 ,4 9 4 ,8 8 3 1 8 5 ,2 1 8 ,6 7 4 2 9 ,7 0 5 ,8 2 7 2 9 ,7 0 5 ,8 2 7 3 ,1 9 7 ,3 7 2 3 ,1 9 7 ,3 7 2 2 6 ,5 0 8 ,4 5 5

1 1 8 ,2 1 3 ,3 1 9 1 6 ,3 4 3 ,5 6 1 1 4 8 ,2 6 0 3 ,5 3 6 ,5 0 8 3 ,9 4 5 ,3 6 9 1 ,3 1 4 ,4 5 7 6 0 2 ,2 4 8 1 ,6 4 4 ,7 1 0 7 ,7 2 6 ,4 2 1 1 2 ,0 5 0 ,9 6 3 1 6 5 ,5 2 5 ,8 1 6 ( 2 9 ,3 0 0 ,3 4 3 ) ( 2 9 ,3 0 0 ,3 4 3 ) ( 2 9 ,3 0 0 ,3 4 3 )

3 2 ,5 3 6 ,7 4 4 3 0 ,7 7 1 ,8 3 8 3

3 0 ,3 3 9 ,3 7 8 1 0 ,9 6 6 ,7 1 9 4

5 ,9 4 1 ,1 6 5 2 0 ,5 6 7 ,2 9 0 3

( 2 9 ,3 0 0 ,3 4 3 ) (3 )

B a n g la d esh C o m m e rce B a n k L im ited C a sh F lo w S ta tem en t

2010 TAK A C A S H F L O W F R O M O P E R A T IN G A C T IV IT IE S Inte re st R ec eip ts in c ash Inte re st P a ym e nt D ivid e nd R e ciep ts F ee and co m m isio n rec eip ts in c ash S a la ry & A llo w ance s P a ym e nts R e co ve ries o f L o ans P r evio u sly W ritten O ff P a ym e nt to S u p p lie r s Inc o m e T a x p a id R e ce ip ts fro m o the r O p e rating A c tivitie s P a ym e nt fo r o the r O p e rating A c tivitie s O p era tin g P ro fit B efo re C h a n g es in cu rre n t A ssets & L ia b ilitie s In c rea se/D e cre a se in o p era tin g A sse ts a n d L ia b ilitie s (Inc rease )/D e cre ase in S ta tu to r y D ep o sits P u rc ha se/S ale o f T rad ing S e cu rities (Inc rease )/D e cre ase in L o a n & A d vance s to O the r B ank s (Inc rease )/D e cre ase in L o a n & A d vance s to C lients (Inc rease )/D e cre ase in O the r A ssets Inc rea se/(D e cre ase ) in D ep o sits fro m O ther B a nk s Inc rea se/(D e cre ase ) in D ep o sits fro m C lients Inc rea se/(D e cre ase ) in O the r L iabilities Inc rea se/(D e cre ase ) in T ra d ing L iabilitie s N et C a sh F lo w fro m O p era tin g A c tiv ities (A ) C A S H F L O W F R O M IN V E S T IN G A C T IV IT IE S P ro ce ed s fro m S a le o f S e cu r ities Inc rea se/(D e cre ase ) in C a sh d u e to S ale and P u r c ha se o f A ssets (P u rc ha se)/S a le o f P ro p e rty p lant a nd e q u ip m e nt (P u rc ha se)/S a le o f S u bsid iar y N et C a sh u sed in In v estin g A ctiv ities (B ) C A S H F L O W F R O M F IN A N C IA L A C T IV IT IE S R e ce ip ts fro m issu e o f o r d inary S ha res/(R ed e m p tio n o f S hare ca p ital) D ivid e nd p a id N et C a sh F lo w fro m F in a n c ia l A ctiv ities (C ) N et Inc rea se/(D e cre ase ) in C a sh (A + B + C ) E ffec ts o f C hang es in C R R M ainta ine d w ith B ang la d esh B a nk O p ening ca sh & C a sh E q u iva le nt C lo sin g C a sh a n d C a sh E q u iv a le n t

2009 TAKA

1 ,0 1 6 ,1 1 1 ,2 4 6 (5 8 3 ,8 5 0 ,8 5 2 ) 8 8 5 ,1 4 6 9 0 ,9 3 3 ,6 9 7 (1 9 0 ,2 7 9 ,4 9 7 ) (4 2 ,6 6 1 ,2 9 3 ) (1 ,8 1 4 ,8 4 0 ) 2 4 1 ,9 2 1 ,3 6 5 (4 2 ,4 2 5 ,1 0 3 ) 4 8 8 ,8 1 9 ,8 6 8 1 ,9 0 6 ,4 4 3 ,6 7 9 (2 ,0 0 9 ,8 1 8 ,3 8 4 ) (3 1 9 ,7 2 0 ,8 6 4 ) 1 ,4 2 0 ,0 0 0 ,0 0 0 2 ,3 6 2 ,6 3 9 ,1 9 4 3 5 3 ,3 4 3 ,7 3 3 2 ,3 9 5 ,2 6 3 ,5 4 7

9 1 9 ,9 3 4 ,7 5 7 (5 7 5 ,4 8 4 ,5 7 1 ) 8 6 8 ,4 1 8 4 3 ,6 1 9 ,2 9 6 (1 4 4 ,0 3 1 ,5 0 7 ) (2 9 ,0 2 9 ,8 1 0 ) (1 4 ,4 0 9 ,1 7 9 ) 6 3 ,4 4 5 ,4 1 0 (1 0 ,7 9 3 ,9 0 0 ) 2 5 4 ,1 1 8 ,8 2 4 1 9 9 ,8 0 6 ,0 9 0 (4 7 0 ,2 1 3 ,4 1 4 ) (8 5 ,1 2 9 ,7 5 3 ) (2 0 ,0 0 0 ,0 0 0 ) 6 8 8 ,1 0 8 ,9 7 6 8 7 ,0 4 0 ,2 8 1 4 5 3 ,9 2 4 ,9 1 4

(9 ,2 2 7 ,1 1 6 ) (9 ,2 2 7 ,1 1 6 )

(1 1 ,4 1 7 ,3 0 1 ) (1 1 ,4 5 3 ,3 2 5 ) (2 2 ,8 7 0 ,6 2 6 )

1 ,0 6 8 ,7 4 2 ,8 0 0 1 ,0 6 8 ,7 4 2 ,8 0 0 3 ,4 5 4 ,7 7 9 ,2 3 0 2 ,9 3 6 ,0 0 1 ,6 7 2 6 ,3 9 0 ,7 8 0 ,9 0 2

4 3 1 ,0 5 4 ,2 8 8 2 ,4 7 5 ,6 5 8 ,9 9 4 2 ,9 0 6 ,7 1 3 ,2 8 2