INTERNSHIP REPORT ON
General Banking Activities of National Bank Limited
ii
Letter of Transmittal
R.Tareque Moudud
Director
Office of Placement and Alumni (OPA)
American International University-Bangladesh (AIUB)
Kamal Ataturk Avenue, Banani
Dhaka-1213, Bangladesh
Subject: Submission of Internship Report
Dear Sir
Here is the report paper on the topic of General Banking Activities of National
Bank Limited
I have completed this report as part of my internship program. This report has been
compiled as per your requirements and those set by the host organization. It gives
me immense pleasure to tell you that working on this internship report has given
me a wide range of exposure.
This report is based on the knowledge, experiences and the skills that I have
acquired during my period of internship in Sign Vision Ltd.
I am thus submitting this report with the hope that it lives up to your satisfaction.
However I would be glad if you enlighten me with your thoughts and views
regarding the report. In addition, if you wish to enquire about any of the aspects of
the report, I would be glad to answer your queries.
Sincerely,
___________________
Turin Afroz
ID: 08-11229-2
iii
Letter of Endorsements
The internship report entitled General Banking Activities of National Bank Limited
has been submitted to the Office of Placement & Alumni, in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration, Major in Accounting &
Finance, Department of Business Administration on 19 April 2012 by Turin Afroz, Id No 0811229-2, The report has been accepted and may be presented to the internship defense
committee for evaluation.
(Any opinions, suggestions made in this report are entirely that of the author of the report. The
university does not condone nor reject any of these opinions or suggestions).
Acknowledgment
iv
First of all, I would like to thank almighty Allah for his grace in accomplishing my internship
report on time.
I am also thankful to all emlpoyees of National Bank New Eskaton Branch for giving me the
opportunity to conduct the internship in National Bank Ltd. Bangladesh. I would like to
thank to Senior Vice President Kazi Shamsul Alam, Vice President Mohammad Shahidul
Alam, Senior Executive Hosne Ara Rita for supervising me and providing various key
information and giving me the path to write a fruitful report.
I am also grateful to the employees of all departments for their cordial acceptance. They have
been very helpful in showing me the work process and provided relevant information for
my report whenever I approached. It was a great opportunity to do internship in such an
organization. The experience I have gathered will be a privilege for my future career
planning.
Executive summary
Banking sector is one of the constant financial institutions of a country. Due to globalization and
technological changes, they give effective real time service to their customers. A country is
financially rich when it has modern financial institutions of its own. These institutions play a
v
vital role in the field of financial stability of a country. National Bank Limited pursues
decentralized management policies and gives adequate work freedom to the employees. This
results in less pressure for the worker and acts as a motivational tool for them, which gives them,
increased encouragement and inspiration to move up the ladder of success. Overall I have
experienced a very friendly and supporting environment at National Bank Limited which gave
me the pleasure and satisfaction to be a part of them for a while.
The overall approach of the report is a descriptive one as it goes into the depth of service quality
of National Bank Ltd. Here both primary and secondary information were used. Interview was
the basic techniques comply to collect primary data from any people within the organization.
Information about the varieties of activities within the correspondent banking department was
collected trough interviewed. Among the secondary sources to collect data regarding the
companys performance over the past six years are publications, Annual reports of Banks Ltd.
Different circulars and papers of National Banks Ltd, Term papers of NBL training manuals,
Guidelines for Foreign Exchange Transactions, General Banking Operation manual, Banking
Lecture sheet within the organization helped me to gather data about the organization. Different
Problems, suggestions, recommendations have come at the end of the report. The Problem
findings during the three-month long internship period and suggestion are given from
observation, comparative analysis, strategic point of view etc. To increase the efficacy in
customer service National Bank Ltd should try to develop the process of providing services.
National Bank Ltd has passed a long way science it is providing services. Already it has earning
a strong positioned in the field of customer services. To continue the hold position and be perfect
in this sector it will have to keep more and more attention to the customer retention and
development. So the result of the study should be taken as indicative rather than conclusive.
vi
Table of Contents
Letter of Transmittal.
Letter of Endorsement...
Acknowledgement..
Executive Summery
Chapter 1: Intrduction to the Report.
1.1 Rationale of the Study.
1.2 Objectives of the Report.
1.3 Background of the Organization.
Chapter 1:
Introduction to the Report
Theoretical knowledge never equips with all the skills he/she requires in the practical field, and
therefore practical real world experience is required. Internships provide an opportunity for
students to link theory with practice and further serve as a temporary labor pool for those
agencies that have committed to participate in the internship program. The department fulfills its
mission of preparing students for significant professional and managerial positions in the public
sector. This program and final report will enable the student to compare theoretical ideas taught
in the classrooms in the complex business environment.
There could be a great opportunity in terms of job prospects as this program provides the
experience in actual public environments just before entering the job market.
In the context of Bangladesh, the business, more particularly, the commercial banks are
dominating in the business world. Professional behaviour is really an important skill in these
business areas and this internship program will harness to achieve that skill. Both globally and
locally, at present banking business is facing more and more competition due to more
globalization and technical advancement where Bangladesh is not the exception. Due to rapid
shifting of banking business, there has been acute importance of proper professionalism for
continuing this business while keeping pace with fast advancement and to survive in the global
competition.
Apart from only lending and borrowing money, there have been loads of activities accomplished
by banks and those activities require skill, knowledge and pure professionalism. BBA equips a
graduate with required theoretical knowledge, where, to gain up-to-date skill, practical
experience internship in banking business completes the roadmap for a student to his/her for
continuing the journey in the rapid changing business and gaining the required professionalism.
In this internship program, I was not just only observing how people were working, rather I was
a part of team of National Bank Ltd with all my responsibilities from my very first day. There
have been lot of meaningful projects and targets set by the bank management and I had the time
and space to make them count. This has given me the opportunity to learn job responsibility and
accountability.
Additionally, being involved with the teams, leading and following members, meeting talented
and real professional people, developing innovative ideas were really crucial for me and added
many great values in my CV and all the skills are really transferable while I will be seeking
employment in the related areas of banking business.
1.2 Objectives of the Report
Mainly the objective of this report is to review and analyze the general banking activities of
National Bank (the branch of Dilkusha). This will cover the various services of the banks for
their clients, benefits, their operation and management of their different activities and also some
recommendations for developments if require after reviewing.
Beside the main objective, this report aims to apply my theoretical knowledge in the practical
field which is achieved in my academic level from my course and to fulfill the partial
requirement of the BBA program form the department of accounting and finance. Additionally,
this program will have a target of knowing about the general and advance banking activities of
National Bank, bridging between theory and practical banking day-to-day activities and
evaluating their operation and management. It will also cover some common inefficiency of their
banking system and lastly will put some recommendations/suggestions for further development
while solving the problems.
1.3 Background of the Organization
National Bank Limited Limited has its prosperous past, glorious present, prospective future and
under processing projects and activities. Established as the first private sector bank fully owned
by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with
the passage of time after facing many stress and strain. To keep pace with time and in harmony
with national and international economic activities and for rendering all modern services, NBL,
as a financial institution, automated all its branches with computer networks in accordance with
the competitive commercial demand of time. Moreover, considering its forth-coming future, the
infrastructure of the Bank has been rearranging. The expectation of all class businessmen,
entrepreneurs and general public is much more to NBL. At present N.B.L. have 145 branches
under their branch network.
NBL was also the first among domestic banks to introduce international Master Card in
Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank
has in its use the latest information technology services of SWIFT and REUTERS. NBL has been
continuing its small credit programmes for disbursement of collateral free agricultural loans
among the poor farmers of Barindra area in Rajshahi district for improving their livelihood.
The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury
inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha
Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was
opened on 11th May 1983 at Khatungonj, Chittagong.
New Eskaton branch of NBL was established in 2001 and the branch has achieved the
confidence immediately after its establishment by providing superior quality service with
sincerity. The branch is located at the central point of New Eskaton of Dhaka city. I have
experienced a very friendly and supporting environment at NBL which gave me the pleasure and
satisfaction to be a part of them for a while.
NBL at a Glance:
Date of incorporation
Commencement of operation
Nature of Business
Slogan
Target customers
Authorized capital
Paid up capital
1.3.2
Mission of NBL
NBLs mission is to continue our support for expansion of activities at home and abroad by
adding new dimensions to our banking services which have been ongoing in an unabated
manner. Alongside, NBL are also putting highest priority in ensuring transparency, account
ablility, improved clientele service, as well as our commitment to serve the society through
which we want to get closer to the people of all strata. Winning an everlasting seat in the hearts
of the people as a caring companion in uplifting the national economic standard through
continuous upgradation and diversification of NBLs clientele services in line with national and
international requirements is the desired goal we want to reach.
1.3.3 Goals and Objectives of NBL
NBL is always ready to maintain in the highest quality of services by upgrading banking
technology prudence management banking and by applying high standard of business ethics
through its established commitment and heritage.
To build up a deep-rooted and harmonies banker-customer relationship by dispensing
prompted improved services to the clients.
To make best use of hard-earned investment of our valued shareholders. Simultaneously,
play our due part in developing a vibrant capital market by ensuring more effective
participation of the Bank in the share market.
To make best use of latest technologies for giving the clients a taste of modern banking so
as to encourage them to continue and feel proud of banking with NBL.
To respond to the need of the time by participating in syndicated large loans financing,
thereby expanding the area of investment of the Bank.
To gain confidence of all quarters involved in the economic development of the country
through pursuance of a policy of continuous adjustment and coordination of the Banks
external trade programmers with the dynamism inherent in the international trade and
payments system.
1.3.4 Business Strategies of NBL
To manage and operate the bank in the most efficient manner to enhance financial
performance and to control cost of fund.
To strive for customer satisfaction through quality control and delivery of timely services.
To identify customer credit and other banking needs and monitor their perception towards
our performance in meeting those and update requirement.
To review and update policies procedures and practices to enhance the ability to extend
better services to customer.
To train and develop all employs and provide them adequate resources so that customer
needs can responsibility addressed.
To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to all employers in a timely fashion
To cultivate a working environment that fosters positive motivation for improved
performance
To diversify portfolio both in the retail and whole sale market.
To increase direct contact with customer in order o cultivate a closer relationship.
1.3.5 Core Values of NBL
National Banks core values consist of six elements. These values bind people together with an
emphasis that people are essential to everything being done in the bank. They believe that, they
create new value by forming teams of specialist in various fields and providing optimal services
to their customer.
Integrity:
NBL protects and safeguards all customer information.
NBL treats everyone in an equitable and consistent manner.
NBL creates an environment, which earns and maintains customer trust.
Open Communication:
NBL builds customer relationships based on integrity and respect.
NBL offers a full line of products and excellent service.
NBL is committed to the prosperity of the customers and shareholders.
Performance Driven:
In NBL, customers and employees are judged in terms of their performance.
Continuous Self Improvement:
Continuous learning, self- challenges and strive make ways for self improvement of
workforce at NBL.
Quality:
NBL offers hassle free better service timely.NBL builds-up quality assets in the portfolio.
Team Work:
Interaction, open communication, and maintaining a positive attitude reflect NBLs
commitment to a supportive environment based on teamwork.
The banking sector in the country faced different problems thought the year. Even through the
board and management never stopped its effort to maximize wealth, which is reflected by
143.97percent profit growth in 2007, highest ever in the last 15 years. The bank earned the
676.45 core revenue in 2007 as interest, income from investment and commission & exchange
earning, which who Tk. 530:69 crore in the provision year. As a result the total operating profit
rode to Tk. 221.51 crore in 2007 from Tk.114.68 crore in the previous year.
1.3.8 Form of Organization:
1.3.8.1 Board of directors
In NBL, the board of directors has been conceived as the sources of all power headed by its
Chairman. It is a legislative body of the bank .Board can delegate its power and authority to
professional but cannot delegate, relinquish or avoid their responsibilities.
Board of Directors of NBL:Mr. Zainul Haque Sikder
Ms. Parveen Haque Sikder
Alhaj Khalilur Rahman
Mr. Moazzam Hossain
Prof. Mahbub Ahmed
Mr. Zakaria Taher
Mr. Ron Haque Sikder
Mr. Rick Haque Sikder
Mr. Mabroor Hossain
Mr. A K M Enamul Hoque
Mr. Salim Rahman
Lt. Col.(Rtd) Md. Azizul Ashraf
Capt. Abu Sayeed Monir
Mr. Md Abdur Rahman Sarker
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Managing Director
Chapter 2:
Activities Undertaken
ways- taking deposits from various areas in different forms and lending that accumulated amount
of money to the potential investors in other different forms.
General Banking is the starting point of all the banking operating. General Banking department
aids in taking deposits and simultaneously provides some ancillaries services. It provides those
customers who come frequently and those customers who come one time in banking for enjoying
ancillary services. In some general banking activities, there is no relation between banker and
customers who will take only one service form bank. On the other hand, there are some
customers with who bank are doing its business frequently. 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, demit funds, issue
bank drafts and pay orders etc. since bank in confined to provide the service everyday general
banking is also known as retail banking. The various jobs undertaken by a bank could be
represented in the following way:
In the case of the NBL Eskaton branch, I found the following section of general banking
activities of NBL. at New Eskaton branch.
Account Opening
Dispatch
Cash Department
Accounts Department
Clearing Department
Deposit
Remittance
All the employees of New Eskaton branch helped me to complete my job and I tried to describe
my knowledge, which I gathered from my internship period.
2.1.1 Account Opening Section
Account opening procedure of NBL is very good. They collected all the necessary documents
whenever they open an account. Only five to ten minutes are required to open an account if all
the documents are correct. This branch has lots of deposit compare with other bank in New
Eskaton area. Peoples are willingly comes to open an account in this branch. They dont need to
force or convince to their client to open an account in their branch. A bank has to maintain
different types of accounts for different purposes. NBL offers the general deposit products in the
form of various accounts. There are some negative sides also of their account opening activities.
Sometimes peoples are highly dissatisfied whenever they found that lots of information they
have to provide.
There are different types of accounts offered by NBL for its targets groups. These are shown as
below.
03
04
05
06
07
2,83,394/4,25,091/5,66,788/7,08,485/14,16,970/-
2.1.2 Dispatch
The main function of dispatch division is dispatching all types of documents such as OBC, LBC,
and different types of letter, different advice. Beside dispatch division receives letter and
documents, which are may be coming from head office, all other branches of NBL, other banks,
negotiation and opening bank (in case of Import and Export) in the name of NBL, New Eskaton
branch. The officer engaged in the dispatch division maintain two types of mail, which is
Inward mail
Outward mail
2.1.3
Cash Department
In cash department two types of activates has done which as follows: Cash receiving
Cash payment
When depositor wants to withdraw his money then he present or order cheque for withdrawing
cash from cash counter. At first deposit holder present his cheque on the computer desk. Then the
authorized officer checks that cheque and amount has been balance in his account. When every
things right then the amount has been debited from the depositor account on which the cheque
has been drawn. If there is any doubt in the signature which has been appeared on the specimen
signature card has verified. When everything ok then payment seal put on the cheque. Then
bearer has signed on the back side of the cheque and authorized officer made payment. The
authorized officer must have to maintain cash payment register.
The components of cash payment register book are following: Cheque number
Account number
Payment amount
Authorized signature
Payment date
2.1.4
Accounts Department
Accounts division is the most important for all banks. In accounts division maintain all types of
accounting procedures of New Eskaton branch and support the branch to take different types of
initiatives by providing various data and information.
Loan: An arrangement in which a lender gives money or property to a borrower and the
borrower agrees to return the property or repay the money, usually along with interest, at some
future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally
the lender has to bear the risk that the borrower may not repay a loan (though modern capital
markets have developed many ways of managing this risk).
2.1.5.1 Home Loan
NBL offers home loan facility for purchasing flats or construction of house.
Grace period is available up to 9 months for flat purchase or 12 months for construction
Competitive interest rate
No application or processing fee
Eligibility: Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this
loan.
2.1.5.2 SME Loan NBL offers financial support to small businessmen/enterprise with new
products named "Festival Small Business Loan" and "NBL Small Business Loan" has been
introduced in the Bank.
Eligibility: Any genuine and small businessmen/ entrepreneurs/enterprise having honesty,
sincerity, and integrity.
The products of National Bank with their financing items under LOS loan are given below:
Household Durable Loan: Motor Cycle, , Personal Computer, Photocopier, Fax machine,
Small PABX system, Television, Mobile Phone set, Refrigerator, Audio-video equipment,
Other home electric appliances, Furniture and any other household items.
Car Loan: Car, Jeep, Station Jeep, Pick up, Van, Cover Van, Bus, Truck, Ambulance and
any other vehicle for own use.
Doctors Loan: For the Doctors only.
Advance Against Salary: Any qualified person
Education Loan: For Study purpose only.
Travel Loan: For traveling purpose.
Wedding loan: For wedding only.
CNG Conversion Loan: To convert into CNG.
Any Purpose Loan: For emergency need.
Hospitalization loan: For treatment in hospital.
Dhanmondi Branch
Motijheel Branch
Figure: Clearing Activities of NBL through BB
Current Account
Savings Account
Fixed Deposit
School Banking
In National Bank New Eskaton Branch, they follow A to Z Software which perform
Better service to the customer in Deposit Department.
2.1.9
Remittance
Remittance is one of the main components of Banking. The remittance section is plays a very
vital role in case of banks customer service section. Remittance means transfer of money from
one place to another. It is one of the safest ways to transfer money from one place to another.
NBL has 91 brunches so they have strong network through whole country and they can easily
reemit money most of the districts with in the country.
For transferring money NBL. offer different instruments such as: Telegraphic transfer (TT)
Pay order (PO)
Demand draft (DD)
Pay slips (Ps)
For the benefit of their client, NBL gives opportunity by providing Traveler Cheque to those who
want go abroad. For that they work as an agent of American Express Bank and sell travel cheque
of AMEX to their clients. NBL has become the member of SWIFT.
The activates of SWIFT have been started from last December 2000. Now the transfer of ExportImport documents and such other messages become very easier and shorter.
Samba
Quick Express
DIIT etc.
Chapter 3:
Constraints/challenges and proposed course
of action for the improvement
National Bank is a big organization in general term and there are lots to be considered to
study their general banking activities thoroughly. However, picking all the aspects of their
overall activities and covering everything precisely was a real challenge for this report.
Regular interaction with the officials was the pre-condition of getting various information
about banking activities. As the bank officials were busy in their own role, it was difficult
facilitate getting access to some concern people or department for information solely for the
research and co-operate the interns, students or any researchers.
The short span of time for such a big research is not always enough therefore the University
could consider the time duration for the internship program.
3.1.2 Limitations observed in the organization
The banking system seemed to me as very traditional and modernization was hardly
observed.
Despite the good banking service, sometimes customer service was not up to the level to
some extents. Lack of research, survey and feedback system with the customers is big
money.
Employees satisfaction is one of the most crucial factors in an organization. However, it
has been observed that the salary was not to satisfactory level after interviewing some
staffs.
This course was basically about various characteristics of financial institutions and market
including banks. I found this course useful for the internship program, as I have acquired
knowledge about how a financial institution i.e. bank plays vital role in the financial market
through its day to day banking activities.
ii.
This course provided me with the knowledge on the financial management of a bank to
protect a bank from bank liquidity and failure. While I was doing my internship program, I
had the chance to look into the activities of the National Bank and their financial
management was a fundamental part of these activities. The knowledge I gained from the
course assisted me evaluating their financial management system.
iii.
A bank always focuses on investment fund management to derive the maximum benefit from
it. I gain not only the knowledge about investment management of a bank but I also studied
on market settings, industry analysis, company analysis and technical analysis. It was useful
in the sense that I had to analyze the overall banking activities of the National Bank and that
included various analysis of this bank upon which their current and future strategies to be set.
Chapter 4:
Lessoned Learned from the Internship
Program
organization. I got sufficient assistance from the working people in terms of acquiring enough
idea about their working strategy. This enhanced my knowledge, skill and the power of
implementing of my academic knowledge in a workplace. I believe this is much quite important
and also the whole program made me ready for starting my professional career in the same
environment.
this internship program will help us a lot in job sectors. Internship helps us to learn lots of things
which will be very effective for the near future.
From universitys internship program I have learned
1. How to give a companys portfolio in the report
2. How to present work experience in the report
3. Cooperative education experience
4. Concern for integrating experiences and external experiences
5. Way of communication.
4.3 Others:
While doing this internship I have learned lots of new things, which was totally unknown for me.
Besides learning from the organization and the university I have also learned some other things
which are very essential for me.
1. Increased trust, confidence and professionalism
2.
3. Increasing sophistication
4. Developing skills and competencies
5. Symbolic capital and meaning, conceptual familiarity.
Chapter 5:
Concluding Statement
of the bank, it can be said that National Bank Ltd plays some vital roles for the countrys
economy.
The communication between the intern and the supervisor should be quite clear and on
the regular basis so that the intern has the total understanding and control over the entire
internship program.
The university sometimes could take initiative for the students who often fail to get offer
form the companies for internship. The university could make some reference lists with
big companies and make them offer its students for internship.
A fresh intern is not always that keen to achieve full control on the program. He/she
might not need some extra knowledge about corporate culture and some other things
about a work place and companies. In this regard the supervisor could be a big helping
hand for the intern. The supervisor can give initial view about corporate environment for
a smooth start of the program.
The interns could get highly motivated by the supervisors while they will be performing
the internship program in some particular companies. This motivation will drive the
interns to get jobs from those companies. Also, the supervisors can arrange some group
discussion to share the information about companies and make the interns fully
understand.
References
Debnath, R.M. (2004). Business of Banking (1st ed.). Dhaka. Lotus Publishers,
984-32-1093-9
ISBN
Appendices
Abbreviation:
A/C
AD
B/L
BB
BOE
CCI & E
CFR
CIB
CIF
DD
DP
EPB
EXP
FC
FDD
FOB
HS
IBC
IBCA
IBDA
IMP
IRC
L/C
LCAF
OBC
PO
PSI
Account
Authorized Dealer
Bill of Lading
Bangladesh Bank
Bill of Exchange
Chief Controller of Import & Export
Cost & Freight
Credit Information Bureau
Cost Insurance & Freight
Demand Draft
Note Demand Promissory Note
Export promotion Bureau
Export Form
Foreign Currency
Foreign Demand Draft
Free On board
Code Harmonized System of Coding
Inward Bills for Collection
Inter Branch Credit Advice
Inter Branch Debit Advice
Import Form
Import Registration Certificate
Letter of Credit
Letter of Credit Authorization Form
Outward bills for Collection
Payment Order
Pre Shipment Inspection
SWIFT
TC
TIN
TR
TT
STD