To Evaluate The Financial Performance of The General Banking Activities

Chapter : 1 Introduction 1.
1 Introduction:
Bachelor of Business Administration (BBA) is a professional course. The course is designed with an excellent combination of practical and theoretical aspects. After completing BBA certain times is preserved for internship. As a student of BBA with the requirement of my course I was assigned to National Credit and Commerce Bank limited (NCCBL) to Anderkilla Branch, Chittagong for my internship. However, I was very much interested to know how to develop banks. So I chose the research topic as General Banking Activities of NCC Bank Ltd. Anderkilla branch. They intend to ensure the trust and confidence of the customers through focused customer orientation, quality of service and state-of the art technology, transparency in dealing and adopting the best practices of Corporate Governance, achieving excellence in all the endeavors to create value for all the stakeholders. The significant challenge posed before them is the maintenance of the quality of business simultaneously with its information and business consolidation processes. This report is prepared based on the: topic General Banking Activities of NCCBL Anderkilla branch. Due to this practice the remittance department of NCC Bank has been growing to provide a good participation in the profitability of the Bank. Basically, this report is highlighted on overview of NCC Bank Ltd, Anderkilla branch. Structure, Analysis, Present status, Performance of NCCBL, Anderkilla branch. Deposit Mobilization, Utilization of Fund, Own Experience, Recommendation and conclusion.
1 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC
1.1
Objectives of the Study
The objectives of the study are to gather practical knowledge regarding banking system and its operations. Theoretical classes of BBA provide us theories regarding different subject. Whereas practical orientation gives us the chance to view those system and their operations. More precisely we can identify the objectives of this report as follow: To know the various functions of General Banking. To know the different types of deposits accounts. To evaluate the performance of the General Banking activities. To identify the problems. To suggest some measure to overcome the problem.
1.2
Methodology
In collecting the necessary data, a special care has been taken so that all the variables may not affect the objectives of the study. Data needed for conducting the study have been collected from the following sources. a) Primary source and b) Secondary source
Primary sources
The primary data in this report mainly includes Observation while working in different desks and Informal discussion with professionals.
Secondary sources
Secondary sources are the permanent and printed sources of information. These areAnnual reports of NCCBL Desk report of related department Banks statement Different reference books Study of related books, seminar paper, training papers, Publication of statements
1.4 Scope of Study

At NCC bank Ltd. Anderkilla Branch Chittagong. I tried to acquire knowledge about the General Banking system. The Bank has classified its total operation into different sections. These are: Account opening, Clearing, Deposit, Remittance, and FDR.
1.5. Limitations of the Study

Although I have enjoyed full co-operation from employees of NCCBL and they also gave me much time to prepare this report properly in the way of my study, I have faced some difficulties, which can be termed as limitations. They are as follows: It should be certainly mentioned that time constraint is the first limitation of the study. Only three months is not sufficient for gathering perfect knowledge on the vast area of bank.
In some cases, they could not be able to supply my topic related data for preparing a more in depth research study. Office secrecy was one of the most important problems. Disclosing of some information was restricted. In case of secondary data collection, there was very little secondary information. There were few support books, reports, journals, etc. moreover, the branch office had very little of this information. Thats why bulk of it had to be collected from the head office. As the officers were very busy with their day to day work, they could provide very little time. Unavailable of sufficient written documents as required for making a comprehensive study. Some of the responsible officers of NCCBL have no exact knowledge about the internship report.
Chapter : 2 Overview Of The NCC Bank Ltd 2.1 Background

National Credit and Commerce Bank Ltd. is one of the established and faster growing bank in Bangladesh. Its ongoing financial liberalization program, make it as a fast growing leading and high-flying bank in the private sector to operate on the commercial arena of Bangladesh. The bank has been sponsored by a group of renowned personalities from the field of trade, commerce and industries including some eminent entrepreneur. A pool of highly skilled professionals having wide experience in domestic and international banking manages the bank. NCC Bank Ltd has already occupied a challenging position among its competitors after achieving success in all areas of banking operation. It offers all
kind of commercial, corporate and personal banking services covering almost all segments of the society. To serve the customers through capacity building across multi delivery channel is one of the main strategies of the NCCBL. The bank is gradually expanding its branches to reach its customers for providing various convenient services. Thus, in the local market the operation of the NCCBL is highly appreciated for its customer oriented focus.
2.2 History of NCCBL

National Credit and Commerce Bank limited came to reality through the National Credit limited. Prior to conversion into a scheduled commercial bank, National Credit Limited(NCL) was incorporated as an investment company on 18th November 1985. It made its January on 25th November 1985 at its registered office and first branch at 7-8 Motijheel Commercial Area, Dhaka-1 000 with initial authorized capital of 1k. 30 crores. It was mostly involved in collecting suitable resources and making profitable investments. But within a very short period of time this investment company turned into a scheduled commercial bank. It was turned into a bank because it faced many restrictions both collection and disbursement of funds while it was operating as an investment company. While this turnover was going on all types of transactions were closed for about fourteen months from April 22, 1992. After that, with the permission from the government and Bangladesh Bank, NCL was converted in a full fledged commercial bank and started its banking operation on 17thMay 1993, in the name of National Credit and Commerce Bank Limited. It has been registered under the company act-1913, as a private commercial bank with paid up capital of Tk.39 crores to serve the nation along with 16 branches. However, NCCBL runs as per company rule, free from government intervention. Year 1994 & 1995 were the full operation year of the bank. During this period gave emphasis on considering the affairs of the institution as well as expansion of business work. During last 13 years if its operation NCCBL has acquired
commendable reputation by providing sincere personalized service to its customers through a technology based environment.
2.3 Objectives of NCCBL of Anderkilla Branch

The main objective is to maximize profit through customer satisfaction which very much reflects the idea of marketing concept. NCCBL has been ensuring maximum profit by avoiding best and improved customer service along with other corporate objectives mentioned below: To provide excellent customer service to its clients, so that they choose NCCBL first for their banking. Ensure high return on investment and services with different service products. Making profitable investment and grow in annual profit management. To remain as the market leader through diversification of business and automation of banking operations. To mobilize savings. Provide a competitive return on assets and equity. To develop the capital market. To find out the problem lying in branch operation as a while. To value and respect the customer and maintain harmonious banker customer relationship.
2.4 Vision of NCCBL of Anderkilla Branch

The purpose of the bank is to become The Bank of Choice in the communities we serve. We accomplish this by offering to our customers the financial services
they expect while providing a return to our owners. In accomplishing this mission, the bank has now been free from all the natures of a problem bank through fulfilling all the conditions set by the central bank. We proudly say: NCCBL is profit-making and problem-free.
2.5 Mission of NCCBL of Anderkilla Branch

Philosophically, a bank is a financial institution, which accepts depositors money for safe-keeping and contracts with the depositors to lend this money at interest to individuals who are in need of its use and who can give ample security that the loans will be paid. From the profits made from lending money at interest the banker agrees to pay the legitimate depositors a fixed sum of interest besides safe-guarding the deposits. Moreover the bank follows the followings as its mission: Maximize the profit within the shortest possible time Try the best level to satisfy customers Establish NCCBL as the best performing bank in the country.
2.6 Values of NCCBL of Anderkilla Branch:

To have a strong customer focus and build relationship based on integrity, superior service and manual benefit. To work as a serve the best interest of the group. To work for business innovation and improvements. To provide recognition and reward on performance.
To be responsible, trustworthy and law abiding in every sphere.
2.7 Products & Services of NCCBL of Anderkilla Branch:

The Bank has wide range of product line to suit the need of the strata. In addition to convention product both Asset and liabilities sides the Bank offers special credit products for its customer. This are Savings account (SB) Short term deposit (STD) Money double deposit (MDD) Special deposit scheme (SDS) Fixed Deposit Rate (FDR) Fund Currency (FC) Instant Earning Term deposit (IETD) Residence Foreign Currency Deposit (RFCD) Non-Residence Foreign Currency (NRFC) Currant Deposit (CD)
2.8 Organizational structure of NCCBL:

CHAIRMAN MANAGING DIRECTOR ADDITIONAL MANAGING DIRECTOR DEPUTY MANAGING DIRECTOR EXECUTIVE VICE PRESIDENT SENOIR VICE PRESIDENT VICE PRESIDENT SENIOR ASSISTANT VICE PRESIDENT SENIOR PRICIPAL OFFICER PRINCIPAL PFFICER SENIOR OFFICER SENIOR OFFICER SENIOR OFFICER SENIOR OFFICER SENIOOFFICER
PROBATIONARY OFFICER JUNIOR OFFICER ASSISTANT OFFICER
OFFICER
HIGHLIGHTS OF THE BRANCH
(GENERAL INFORMATION) Name of the branch National Credit & Commerce Bank limited Anderkilla Branch Location 23, A.N tower, Anderkilla, Chittagong-4000 Telephone numbers: 2850883, 2850884 Total number of Employees Officers Staff Total 16 4 20
Branch In Charge Mr. Taher Ahmed Senior Assistant Vice President Operation In Charge Mr. Mohammad Salim Assistant Vice President
Chapter : 3 Performance of Deposit.

3.1 GENERAL BANKING: 3.1.1. INTRODUCTION
General Banking is the starting point of all the banking operations it is the department which provides day-to-day service to the customers. Through this section bank has to receive and disburse money, to develop banker customer relationship by opening different types of account and providing prompt services to the customers. Every day it collects deposit from the customers by allowing broking interest rate, meets their demand for cash by honoring Cheques and lend it to the customers against ending interest rate. Lending interest rate in higher borrowing interest rate, this is the profit for the bank.
3.1.2. Functional areas of this department:

General banking department is dividing into the following areas. These are: Account opening section. Remittance section. Clearing section. Account section. Cash section. Establishment section.
3.1.3. Account opening section:

This section opens different types of account for their valued customers. Selection of customer is very important for the bank because banks success and failure largely depends on their customers. If customers are bad they creates fraud and forgery by their account with bank and, this destroys the goodwill of the banks. So, this section takes extreme caution in selecting its, valued customer. Types of Account: It work for processing following accountsCurrent Individual Account. Savings Bank Deposit. Short Term Deposit. Fixed Deposit Receipt. Special Saving Scheme. Pension Saving Scheme. Money Double Program.
Account opening procedure in a Flow chart:
Applicant fills up fills up the Applicant relevant application form in the prescribed manner.
She/he is required to fill up the specimen signature card.
Introducing is needed by an account holder.
Account is opened.
The authorized officer scrutinizes the introduction and examine the documents submit.
After depositing the cash one cheque book is issued.
Issuance of deposit slip and the deposit must be made in cash. No cheque or draft is acceptable to the bank.
1) Operational Nature Of Accounts

Current Deposit Account (CD account)
A current Account is one kind of deposit A/C which fund should be payable on demand. The client deposit or withdraw any amount as many times as he wishes. A current account may be opened by any individual, firm, company, club, associates etc. - Minimum balance of TK. 5000 while open - No current account will be opened with cheque. - Fund in the current deposit shall be payable on demand. - Minimum balance to be maintained of TK. 1000 - If minimum balance falls then incidental charges of TK. 50 will be realized half is early. - No interest is payable on the balance of CD. - In case of closing of current account TK. 100 is to be realized against incidental charges.
2) Saving Deposit Account (SB a/c)

The deposit is basically meant for small-scale savers. There is restrictions on withdrawals money in a month - 6.00% interest is provided to depositors. - The minimum amount of balance to be maintained with this type of account is Tk. 1000
- A depositor can withdraw two times in a week for more withdrawal depositors are not entitled for any interest. - To withdraw above Tk. 20000 the depositors has to notice. - NO savings account will be allowed to be overdrawn.
3) Short term deposit (STD a/c)

IT is also known as term deposit. The interest offered for STD a/c is less than that of savings A/C - Generally opened by big business firm. - Interest depends on the amount deposited. - Minimum amount of balance has to be maintained with STD account is Tk. 2 lacs while open. - Interest is given at a rate of 4.5% ( for less than Tk. 1 crore, 5% for more than 1 crore , 5.5% for more than 5 crore, 6% for more than 10 crore and 2.5% for bank to bank.) - Minimum amount is Tk. 5000 must be maintained.
4) Pension Savings Scheme

This is scheme to make the customer introduced to the banking system under this schemes the customers are to pay a certain of money at monthly interval up to a period of 3 to 5 years and after the period they will get the returns along with
the full interest earned during the period and the principal amount. Most of the clients under this scheme are middle class and lower middle class people. - Generally opened by small sever. - Minimum Amount Tk. 500 and maximum Tk. 5000 - Interest rate 8% for 3 years maturity and 7.5% for 5 years maturity period. - Maturity 3 to 5 years.
5) Fixed Deposit Reserve (FDR)
- FDR is neither transferable nor negotiable - If can be opened by all. - Provided 9.00% to 10.00 interest. - Interest rate vary on principal amount. - The deposited principal amounts have not fixed by the Bank.
6) Special Saving Scheme (SSS)

Like Deposit pension scheme this scheme includes the following features for the convenience of the clients. - The monthly installments of Tk. 500 to Tk. 1000 may be deposited every month during the entire period of the scheme. - The duration of the scheme is 5years or 10 years.
- The depositors will be paid a specified as per the following table: Monthly deposit (Tk) 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 10000 5yeras @12.10% 40500 81000 121000 162000 202000 243000 283000 324000 364000 405000 810000 10years @ 12.10% 110750 221000 332000 443000 553000 664000 775000 886000 996000 1107000 2215000
A depositor may open one or more accounts of different installments in the same Branch. Loan may be extended up to 80% of the deposit amount.
7) Money Double Program:

a. Name of the products b. Types & Tenor Money Double Program. Term deposit products for a specific period of 6 years that will make double the Principal amount on
c. Amount d. Interest e. Payment of Interest
f. Premature Encashment
g. Others
maturity. BTD 1.00 lac and/or its multiple. To be expressed in Absolute amount not in Terms of %. Interest will be paid/credited only at maturity (Necessary Charges to be realize after payment/crediting of interest). Interest at a predetermined Equal Monthly Rate, to be kept in Provision A/C until maturity i,e at the end of each year interest will not be accumulated with Principal Amount. Will be discouraged: but if insisted by the Depositor then: For less than 12 months: No interest will be paid: only Principal Amount, less: Charges will be refunded For more than 12 months: interest will be paid at exiting Savings Bank Deposit rate, less: Charges. No Auto Renewal and No extra benefit for post mature Encashment. In case of requirement Loan may be allowed against MDP Receipt to the extent of 80% of the Face Value at an Interest of 16% p.a. following other rules and regulations applicable for S.O.D (F.O)
20
Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC
3.1.4 Cash Section

Cash department is the most vital and sensitive organ of a branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash i.e. opening cash balance are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance. This closing balance is then added to the vault. And this is the final cash balance figure for the bank at the end of any particular day. Functions of cash department: - Cash payment - Cheque cancellation process - cash receipt
- Cash payment Cash payment is made only against cheque. This is the unique functions of the banking system which is known as payment on demand . It makes payment only against its printed valid cheque. a) Cheque cancellation process Receiving cheque by the employee in the cash counter and verification of the following by the cash officer in he computer section: 1. Date of the cheque (it is presented within 6 month from issue date) 2. Issued from this branch. 3. An amount in figure and in word does not differ.
4. Cheque is not torn or mutilated. Then gives pay cash seal and sends to the payment counter and payment officer makes payment.
b) Cash receipt Another important function of this department is receipt of cash. Depositors deposit money in the account through this section by deposit slip, 1. It receives deposit from depositors in the form of cash. 2. So it is the mobilization unit of the banking system. 3. It collects money only its receipts from 4. It receives cash for issuing pay order, TT, DD.
3.1.5 Clearing Section

This section receives all kinds of cheque, in favor of the valued client for clearing on the part of their banking service. After receiving cheque it is necessary to endorse it and cross it specially. Clearing of cheque is done through the clearing house in Bangladesh bank. Before going discuss about the functions of clearing department of NCCBL, let us know what is clearing house actually. Products: It work for processing following accounts. Receive the cheques of other banks from NBL customers Attend the house for clearing Collect cheques from representatives of other banks.
Clearing House:
Clearing house is an arrangement under which member banks agree to meet, through their representatives, at an appointed time and place to deliver instrument drawn on the other and in exchange, to receive instruments drawn on themselves. The net amount payable or receivable as the case may be, is settled through an account kept with the controlling bank. Types of cheque collected by clearing department: There are three of cheque collected by clearing department: 1. Transfer cheque. 2. Inward bills for collection (IBC) 3. Outward bills for collection (OBC)
Transfer Cheque Trensfer cheques are those cheques, which are collected and paid by the same branch of NCCBL. Inward Bills For Collection (IBC) There are two types of clearing: 1. Cheque collects from the other branch of NCC bank Ltd. These cheques are settled by sending CA i.e debiting depositors account and crediting senders branch account. 2. Cheque collects from another bank outside the clearing house. These cheque are settled debiting depositors account and sending DD or TT infavor of Senders bank.
Outward Bills For Collection (OBC) When our branch sends Cheque to other branch of NCCBL is called Outward Bills For Collection (OBC).
Types of clearing: Outward Clearing:

Outward clearing means when a particular branch receives instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.
Inward clearing:
When a particular branch receives instruments, which on them and sent by other member bank for collection are treated as inward clearing.
3.1.6 Remittance Section

In banking business inter-bank transaction is most important. Sending money from one place to another place for the customer is another important service of the bank. The service is an important part of transaction system. In this sevice system, people, especially businessman can transfer funds from one place to another place easily.
Products: It work for processing following transaction Demand draft (DD) Pay order (PO) SDR Telegraphic Transfer (TT) OBC LBC
i) Demand Draft (DD) DD is an order of issuing branch on another branch of the same bank to pay specified sum of money to payee on demand. It is generally issued when customer wants to remit money in any place i.e. outside or the clearing house area of issuing branch. Payee can be the purchaser himself or another mentioned in the DD. It is safe technique of transferring money from one place to another. ii) Pay Order (PO) Pay order should be issued when issuing branch & paying branch are located in a town or city. Pay order gives the right to claim from the issuing bank. A payment is an instrument from one branch to another branch of the bank to pay a specific sum of money. Unlike cheque there is no possibility of dishonoring because before issuing pay order the bank takes money in advance.
Pay order consists of three parties: - Beneficiary - Applicant - Counter Part iii) Telegraphic Transfer (TT) Telegraphic transfer is a mode of money transfer which is done through telephone. Issuing branch request to another branch to pay specified sum of money to a specific person on demand by telegraph or telex or telephone. Transfer of fund by TT is the rapid and Convenient but expensive method.
3.1.7 Accounts Section

This is obviously an independent And unique department, which works as the composition of all the departments of the branch. This sectionis fully computerized. So the conventional large and journal books are not kept like the some nationalized bank. It receives the vouchers from all department and prepares the subsidiaries and maintain accounts. Functions of Account Department: To prepare and maintain daily input journal, proof sheet and validation report. To prepare flash report of daily liquidity position. To maintain and prepare maturity balance sheet.
To maintain trial balance and financial account system. To prepare clearing difference balance. Daily statement of affairs. Originating and responding. Financial control of the bank is done through this department. Test agreed is another arrangement maintained for control purpose. Test control agreed is most important for bank internal control.
3.1.8 establishment Section

This section deals with employees salary, many types of internal expenses such as purchases of stationary, equipment, machinery, payment of labor cost and convince. In case of leave of absence employee collects prescribed form from this section. ICC: internal control and compliance department. This department checks all the activities as per requirements of Bangladesh Bank. Locked facilities Locker facility is available in this branch. Generally people keep their valuable ornaments in the locker. Lockers are three sizes one is small and other is middle and big. If anybody want to open a locker S/he has to pay rent TK. 1800 for big size, Tk.2500 for large, Tk. 1200 for small size annually. Any individual can open a locker.
Demand Account Demand accounts are those accounts, which are without any customer created transactions for a long time. The law has not prescribed any period after which
an account should be treated as a Dormant Account because of absence of current deposit account, if the account have not been operated for a period of one year or more and in case of savings deposit account non operated for a period of three or more is treated as dormant account.
Growth rate of Current Deposit: From the table we see that, in Anderkilla Branch in 2005, 2006 and 2007 the amount of CD A/C was Tk. 38964480.308, Tk. 41590856.82 and Tk. 48040926.61 and growth rate in 2006 and 2007 was 6.74%and 15.50% respectively. But in 2007 the growth rate was decreased by increasing deposit amount. In 2008 the amount of CD A/C was decreased and growth rate also fall by (-50.87%). And in 2009 the amount again increased and growth rate also increased by 49.26%. But in NCCBL, Bangladesh the amount CD A/C has been increased gradually and but growth rate in 2009 and 2010 has been fall from the previous year.
Growth rate of Savings Deposit: From the table we see that, in Anderkilla Branch in 2005, 2006 and 2007 the amount of Savings A/C has been increased year by year. But the growth rate has been increased in decreasing rate. In NCCBL, Bangladesh the growth rate of savings A/C increased year by year.
Growth rate of Fixed Deposit: In Anderkilla Branch, the growth rate of FDR in 2008, 2009 and 2010 has been decrease (110.47%), (68.80%) and (28.95%), but the amount increased year by year. In NCCBL the growth rate of FDR in 2007 has been decreased by 23.23% where in 2006 growth was 35.68%. Again in 2007 the growth increased and in 2010 the growth rate has been fall by 7.72%. Growth rate of Term Deposit: In NCCBL, Bangladesh the growth rate of term deposit in 2008 has been fall and in 2009 and 2010 the growth rate has been increases. In Anderkilla Br. the growth rate of term deposit has been fall gradually but the amount of term deposit was increases.
Growth rate of Total Deposits: With compare to both banks, we can see that, the growth rate of total deposit of Anderkilla Branch is higher than the growth rate 3.1.9 Growth in deposits : When the income of the people surpasses consumption expenditure then they can save the surplus amount. By collecting the surplus income as deposit bank assist in capital formation, which boasts the investment of a country. In this report a study has been conducted on the deposit of NCCBL, Anderkilla Branch that has been shown by the following figure :
Figure in crore Year Deposit 2007 20.39 2008 35.29 2009 54.50 2010 76.56
Growth rate deposits: (Figure in crore )
Statement of Affairs of NCCBL, Anderkilla Br.
Comment: It appears from the above graph that deposit volume of Anderkilla branch has increased from 20.39 to 76.56 crore during the year 2007 to 2010. The volume of deposit gradually increased. It can be inferred from the upward trend of deposit curve is that a positive conception has been grown in the mind of people ( depositors ) regarding the services offered by NCCBL, Anderkilla Brunch.
3.1.10 Table showing Deposit Mix-2010

Types of Deposit Current Deposit Savings Deposit Term Deposit Short Term Deposit Special Savings Scheme Total Percent 4.61% 10.56% 70.68% 8.40% 5.75% 100%
Source: Annual Report 2010.
Chapter 4: Financial performance

4.1 Five Years Financial Highlights
(Taka in million (where applicable) Particulars Authorized capital Paid up capital Reserve fund and other reserve Equity fund Deposits Loans and Advance Investment Import Business Export Business Operating Income Operating Expenses Operating Profit Profit before tax Profit after tax Retained Profit Total Assets (Excluding contra) Fixed Assets Number of Branches Number of Employees Earning per share (EPS) Dividend : Cash (%) Bonus (%) Return On Equity (ROE) (%) Return on Assets (ROA) (%) Capital Adequacy Non performing Loans % if Total Advances Volume of Non-performing Loans 2006 2500.00 1201.79 1215.58 2417.37 28147.34 24678.36 3552.08 17646.80 8557.00 3713.19 2645.62 1267.57 1056.51 479.22 7.833 32615.01 353.71 48 1118 10.00 12.50 19.82 1.47 9.78 4.95 1211.26 2007 2500.00 1352.01 1995.36 3326.52 34901.77 32687.75 6266.62 28779.21 9577.92 5269.03 3488.78 1780.25 1356.32 677.18 8.13 42522.85 522.00 53 1230 30.00 20.23 1.59 10.61 4.17 1353.31 2008 2500.00 1757.62 2863.63 4621.25 46904.66 46332.69 6526.82 38796.88 12522.04 7417.64 5054.15 2363.49 1788.96 882.28 5.34 57365.52 775.31 57 1400 30.00 21.76 1.54 10.61 4.14 1902.58 2009 5000.00 2284.90 4371.62 6656.52 53900.15 50387.68 9671.53 99078.44 11903.72 9333.03 6195.33 3137.00 2686.49 1719.50 46.47 65937.49 849.10 65 1496 47.00 28.49 2.61 13.55 2.84 1420.57 2010 10000.00 1501.25 5771.09 10272.34 67961.24 63230.14 10980.81 41245.21 16125.52 10157.99 6057.79 4100.20 3248.23 2371.68 388.11 83554.18 1191.49 79 1622 32.00 25.35 2.84 10.91 2.27 1425.28
Amount of Provision against Classified Loans Amount of provision against Unclassified Loans Amount of provision against offbalance sheet exposures Advance/Deposits Ratio (%)
523.58 282.09 87.68
644.11 388.78 51.69 93.66
912.90 456.07 109.41 98.78
720.22 509.67 111.93 93.48
742.80 740.31 174.93 93.04
4.2 Deposits: Deposits of the Bank as on 31.12.2010

stood at Tk. 67,961.24 million which reflects a 26.09% growth over the previous years figure of Tk. 53,900.15 million. Deposit mix is shown in the chart belowYear Deposit s 2006 28147 2007 34902 2008 46905 2009 53900 2010 67961
70000 60000 50000 40000 30000 20000 10000 0

2010 2006 2007 2008 2009
Y ear D epos its
4.3 Investment: On 31st December 2010, Banks total

figure of investment was Tk. 10980.81 million, reflecting 13.54% growth over the previous years figure of Tk. 9671.53 million. Among others investment in Government Treasury Bond helps maintaining liquidity requirements in one hand & yielding good profit on the other. year Investm ent
12000 10000 8000 6000 4000 2000 0 year Inves tm ent 2006 3552 2007 6267 2008 6527 2009 9672 2010 10981 year Inves tm ent
2006 3552
2007 6267
2008 6527
2009 9672
2010 10981
4.4 Remittance Business: The Bank puts due emphasis & utmost care to ensure smooth remittance service to the beneficiaries. In 2010, total remittance received by the Bank was more than BDT 12504.25 million registering 6.62% decreases over previous years BDT 13391.51 million. year 2006 remittan 3856 ce
14000 12000 10000 8000 6000 4000 2000 0 year rem ittance 2006 3856 2007 7444 200 8 12 098 2009 13392 2010 12505
2007 7444
2008 12098
2009 13392
2010 12505
year rem ittance
4.5 ROE: On 31st December 2010, Banks total figure of Return on Shareholder Equity (ROE) was 25.35%. Which were not more than 2009s Return on Shareholder Equity. Return on Shareholder Equity is shown in the chart belowYear ROE 2006 19.82 2007 20.23 2008 21.76 2009 28.49 2010 25.35
4.6 ROA: On 31st December 2010, Banks total figure of Return on Assets (ROA) was 2.84%. Which were greater than 2009s Return on Assets. Return on ROA/Return on Assets is shown in the chart belowYear ROA 2006 1.47 2007 1.59 2008 1.54 2009 2.61 2010 2.84
4.7 EPS: On 31st December 2010, Banks total figure of Earning Per Share was 5.33%. Which were not more than 2009s EPS. EPS/ Earning Per Share is shown in the chart belowYear EPS 2006 3.99 2007 5.01 2008 5.02 2009 7.52 2010 5.33
Chapter 5 : Findings, SWOT Analysis, Recommendation, Conclusion, References 5.1 Findings:

Some Different Findings under this study and during the organizational attachment is pointed out below-
The growth rate of deposit during the year 2010 is 26%, although the growth rate positive and comparison with previous year growth of 14% it seems to be increase. Accounts are opened on the request of high-management which hampers the opening procedures and employees face risk by opening these types of accounts. Sometimes cheque book are given on request to customers without proper verification.
Management of NCC Bank Ltd introduces Flora software to the employee for better service. But its not properly ready yet. Sometimes problems create on data storing and finding records by using Flora.
NCC Bank Ltd. Is concentrating investment on small & medium enterprise.

There is a lack of enough and proper promotion of different activities of the Bank. It makes the customer ignorant of the Banks services.
Officers of the desk, where workload is very high, hardly get the chance to go out for development purpose and always feel that their duties for organization would not be evaluated unless they can show a good amount of deposit collection against their name.
It is also revealed that banks administration cost is too higher than other banks in the market.
5.2 SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunity and Threat. The SWOT of NCCBL has been shown below-
Strong Corporate Identity Distinct Operating Procedures Distinct Schedule Strong Employee Bonding & Belongingness
Strengths
Efficient Performance Young Enthusiastic Workforce MBO Various Products Strong Financial Position
No Banking Operation in Barisal Division Absence of Strong Marketing Activities Low Remuneration Package No Banking Operation in Barisal Division
Absence of Strong Marketing Activities
Weaknesses
Low Remuneration Package
Countrywide Network
Opportunity
More Experienced & Managerial Know-How Debit Cards
Govt. Policies are not in Favor of the Private Banks Upcoming Banks
Threats
Moderate Levels of Customer Satisfaction Effects of the World Economic Slump
5.3 Recommendation:
In the light of the findings of this study, the following policy recommendations are made to improve the performance of the NCCBL:
Since, NCCBL cant but have to comply with local system; it should employ more personnel in order to accomplish the paper works quickly and in efficient manner.
NCCBL can arrange some periodic training for its corporate clients where different employees of corporate client will receive training and clear instruction regarding the trade document formalities. It might help NCCBL employees to allocate time and energy for other works which might be advantageous for both the clients and NCCBL.
Online banking must need to be fast enough for quick service to the client. Banks need to modify and develop the Flora Software Service for avoiding further blunder in service.
NCCBL can introduce new Product or Services keeping in view with the customers need and satisfaction.
The best of a bank is its satisfied customer whatever the situation banks personal must always give the impression that is pleasure to surf the customer and remind him or her by owns duty that he/she is the only customer.
There is some lacking for providing detailed information about a customer in the existing software system while opening the account. So data entry should be given checked by authorized officers.
Hours Banking facilities of NCCBL need to be more upgraded where a bank customer can perform different bank activities beyond normal banking hours using online facilities including ATM, Phone Banking, Debit Card, Credit Card or M-bridge Card services.
Scanning of Specimen Signature Card and Account Opening Form need to properly done for the prevention of any future fraudulent
NCC Bank Ltd. Should focuses on their promotional activities. They should also focus on the marketing aspects to let customers know about
their products and offering and more promotion should be given to attract new customer.
Bank should reduce their administrative cost, by reducing unnecessary expense. Few important factor that should be focused on the development process
To ensure equitable distribution of banking facilities, NCCBL should increase their explosion of branches in rural areas.
5.4 Conclusion:
The profit destroying intra industry rivalry in the banking industry makes a banks operation challenging to squeeze out any abnormal profit. In such situation, with an enormous financial strengths and brand image, NCCBL is serving the local people of Bangladesh by offering diversified banking services. Doing outstanding performance and being the dominant among the industry in this cut throat competitive situation depends not only on the internal strengths but also on the external opportunities. Considering this, efficient, timely and updated corporate strategy makes a way out for an organization to reach the desired position. NCCBL is such a bank which was able to grow its size in banking industry of Bangladesh through consistent performance. The consistent
performance of the bank over the last few years is the evidence of the strengths of the bank, efficiency of management team, and uphill struggle of employees. Despite the existence of deficiencies in some areas, the General Banking performance of NCCBL was outstanding among the banking industry in Bangladesh. The bank has to overcome the shortcomings in the near future and offer new innovative services in order to retain its position as a leader amongst banks year after year.
NCCBL, Anderkilla Branch enjoys rapid increasing number of customers day by day procedures satisfy the customers most. because of rendering highly satisfied customer services.
As per as my working experience is concerned, it can not be spelled out within few words. It really gave me a tremendous experience of working in a congenial atmosphere. I wish the bank will retail its position in the near future and offer new innovative services as a leader amongst banks year after year.
5.5 References :
Publications Annual reports of NCC Bank Ltd Financial Statements of NCC Bank Ltd
Websites
www.bangladesh-bank.org
www.nccbank.com.bd,
Observed Documents Accounts opening form Bill of Leading Certificate of Origin

To Evaluate The Financial Performance of The General Banking Activities

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Chapter : 1 Introduction 1.

1 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC

Objectives of the Study

3 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC

1.4 Scope of Study

1.5. Limitations of the Study

Chapter : 2 Overview Of The NCC Bank Ltd 2.1 Background

2.2 History of NCCBL

2.3 Objectives of NCCBL of Anderkilla Branch

2.4 Vision of NCCBL of Anderkilla Branch

2.5 Mission of NCCBL of Anderkilla Branch

2.6 Values of NCCBL of Anderkilla Branch:

To be responsible, trustworthy and law abiding in every sphere.

2.7 Products & Services of NCCBL of Anderkilla Branch:

9 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC

2.8 Organizational structure of NCCBL:

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HIGHLIGHTS OF THE BRANCH

Chapter : 3 Performance of Deposit.

3.1.2. Functional areas of this department:

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3.1.3. Account opening section:

13 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC

Account opening procedure in a Flow chart:

She/he is required to fill up the specimen signature card.

Introducing is needed by an account holder.

After depositing the cash one cheque book is issued.

14 Prepared by: Sheikh Mohammed Amin Akkas, Matric No:B071149, IIUC

1) Operational Nature Of Accounts

2) Saving Deposit Account (SB a/c)

3) Short term deposit (STD a/c)

4) Pension Savings Scheme

5) Fixed Deposit Reserve (FDR)

6) Special Saving Scheme (SSS)

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7) Money Double Program:

c. Amount d. Interest e. Payment of Interest

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3.1.4 Cash Section

3.1.5 Clearing Section

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Types of clearing: Outward Clearing:

3.1.6 Remittance Section

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3.1.7 Accounts Section

3.1.8 establishment Section

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Growth rate deposits: (Figure in crore )

Statement of Affairs of NCCBL, Anderkilla Br.

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3.1.10 Table showing Deposit Mix-2010

Source: Annual Report 2010.

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Chapter 4: Financial performance

523.58 282.09 87.68

644.11 388.78 51.69 93.66