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Internship Report


General Banking of Standard Bank Ltd

Prepared For

Md.Zahidul Islam
Internship Supervisor
Department of Economics

Asian University of Bangladesh

Prepared By:
ID No.: 201110323
Batch: 41

Asian University of Bangladesh

I, MD.KAMRUZZAMAN POROSH hereby declare that the presented internship report on the title
General Banking of Standard Bank Limited is uniquely prepared by me after completion of three
months work in Standard Bank Limited.
I also confirm that, this report is only prepared for my academic requirement, not for any other purpose.
It has not been previously submitted to any other purpose or any other university or organization for an
academic qualification.

Signature :
Department of Human Resource Management
Batch: 41st
Asian University Of Bangladesh

Letter of Transmittal
15, August , 2015
Md.Zahidul Islam
Department of Economics
Asian University Of Bangladesh

Submission of Internship Report.

Dear Sir,
This is my great pleasure to submit the Internship report of my 3 months long Internship program in the
Standard Bank Limited. The title of the report is General Banking Of Standard Bank Limited. This
report has been prepared to fulfill the requirement of my internship program at my assigned organization
in the Standard Bank Limited.
I have put my best effort to make this report a successful one. It has been joyful & enlightening
experience for me to work in the organization & prepare this report. However this has been obviously a
great source of learning for me to conduct similar types of studies in the future.
I would like to express my sincere gratitude to you for your kind guidance & suggestions in preparing
the report. It would my immense pleasure if you find this report useful & informative to have an
apparent perspective on the issue. I shall be happy to provide any further explanation regarding this
report if required & please do not hesitate to call me if you have any query on this report or any other
relevant matters.

Sincerely Yours,
ID : 201110323

A perfect completion of any type of report requires help from a number of a number of persons. I have
taken help from different people to do this Report. At the very outset, with all the impulse of our heart i
wish to express all my devotion and reverence to the Almighty Allah, most merciful beneficent creator
who has enable us to complete the Report on General Banking activity of Standard Bank Limited for
the fulfillment of the requirement for the report.
At the very first I wish to tender my sincere gratitude and deep indebtedness to my honorable internship
supervisor Md.Zahidul Islam , Department of Economic of Asian University of Bangladesh for his
valuable advice and guidance. Without his support it would have been very difficult for me to complete
this report.
I would like to say a big thank you to all the staff of Standard Bank Limited, Gulshan Branch, they made
my experience there very pleasant. Especially MD.Masud Miah, Branch GB incharge for his kind cooperation and successfully completing my Internship programme in stipulated time.
Finally, I would like to express my sincere appreciation to Ariful Islam Apu, (Officer) & Khandakar
Faruque Ajom (FAVP) of (SBL) Standard Bank limited, whose liberal guidance, attention, advice,
suggestions and particularly firm encouragement always kept me toward a right path to complete the
study clearly.

In the age of modern civilization bank is playing its spending role to keep the economic development
wheel moving .The corporation of the bank is needed in every economic activity. In fact there is hardly
any aspect of development activity where state inspired or otherwise where bank do not have role to
play. Standard Bank Limited is a third generation bank in Bangladesh. Standard Bank has incorporated
on May 11,1999 in head office at 122-124 Motijheel ,Chamber building, Dhaka, Bangladesh as a public
limited company with the permission of the Bangladesh Bank. The founder of SBL is committed to
setting a new standard of banking. The Authorized capital of the bank is BDT 55000(million) and its
Share holders Equity is BDT 8871(million) in 2015.The bank provides a broad range of financial
services to its customers and corporate clients in retail banking, corporate banking, and international
trade. The whole banking activities are divided into 3parts,General banking, Loan & Advances and
Foreign Exchange. One of the largest business carried out by the commercial bank is foreign trading
.The trade among various countries falls for close link between the parties dealing in trade. The situation
calls for expertise in the field of foreign operation. The bank which provides such operation ,is referred
to as rending international banking operation. Mainly transactions with overseas countries are respects
of import, export, and foreign remittance come under the preview of foreign exchange transactions.
International trade demands a flow of goods from seller to buyer and of payment from buyer to seller .In
this case the bank plays a vital role to bridge between the buyer and seller. The foreign exchange
department divides into three parts-export ,import and remittance. the export department deals with
export L/C, Amendment of L/C, Transfer of L/C,EXP issue charge. When the L/C amounts have to be
changed,then the amendments of L/C are needed. The expence sectors of export are Courier/mailing
cost, Srationary cost, Parinting cost, Salary of the employee. Salary of the employee is the
administrative cost. But here to analyze the actual earning of export, Ive to find out the totla expenses to
operate export department. Import sector is the most profitable sector in foreign exchange department of
SBL. The Export sector is also doing their level best. The import earning sectors are-commission for
L/C opening, Amendment of local L/C,Service charges, Collection of credit report of the beneficiary.
From commission for L/C opening and service charge, import department earns most. the expence of
export, import, and remittance is almost the same. The remittance earning consists from-Issuance of

cash and endorsement of passport, remittance by TT, Cash incentives handling charge etc. The portion of
foreign exchange earning from total earning is also satisfactory. So Standard Bank Limited is one of the
best leading bank in Bangladesh and this bank have to continue its performance analysis and have to
find out the ways how it can perform its activity much better.


EXP Form

Authorized dealer
Assistant Vice President
Bill of Lading
Back to Back L/C
Commercial Invoice
Chief Controller of Import & Export
Clearing & Forwarding
Credit Information Bureau
Current Deposit Account
Demand Draft
Deposit Pension Scheme
Document against acceptance
Document against payments
Export Cash Credit
Export Promotion Bureau
Export Registration Certificate
Export Form
Foreign Demand Draft
Foreign direct investment
Fixed Deposit Receipt
Telegraphic Transfer
Foreign Documentary Bill Purchase
Inter Bank Collection
Inter Branch Credit Transaction
Inter Branch Debit Advice
Inter Branch Credit Advice
Import Permit From
Import Registration Certificate
Loan against merchandise
L/C Application From
L/C Authorization Form
Payment against Document
Proforma Invoice
Per shipment Inspection
Short Term Deposit

hapter -


Standard Bank Limited


1.1 Introduction of the Study

For Bachelor of Business Administration (BBA) student only theoretical knowledge is not enough for
handling the real life business situation. It is a great opportunity for the student to know about the real
business operations through the internship program. Internship program is the perfect blend of the
theoretical and the practical life experience. It is mandatory for any BBA student of Bangladesh
University of Business & Technology. As per requirement for completion of the internship I prepared
this report General Banking of Standard Bank, which includes the study of various international trade
financing tools and settlement process and financial analysis of the SBL.

1.2 Background of the Report

Bachelor of Business Administration (BBA) is a professional undergraduate course. The course is
designed with an excellent combination of practical and theoretical aspects. After completion taught
courses of BBA, a certain time is kept for internship. As a student of BBA, internship is an academic
requirement. For internship every student is required to work in a selected institution to enhance ones
practical knowledge and experiences. After completing the internship prepared a report on the
knowledge of internship. From that perspective this report is prepared on Performance of Foreign
Exchange Operations of Standard Bank,

1.3 Significance of the Report

This internship report is an important partial requirement of four years BBA graduation program. This is
because knowledge and learning become perfect when it is associated with theory and practice. That is,
student can train and prepare themselves for the job market. A poor country like Bangladesh has an
overwhelming number of unemployed educated graduates. As they have no practical experience been
able to gain normal professional knowledge to establish networking, which is important in getting a job.
Therefore, it is obvious that the significance of internship is clearly justified as the crucial requirement
of four years BBA graduation.

1.4 Scope of the study:

The report covers the details of Standard bank Limiteds practices about all activities. This report
consists of the writers observation and on the job experience during the internship period in the Gulshan

Branch. The report emphasizes on the sequential activities involved and used by Standard Bank Limited
for all transactions. It also focuses on the impact of foreign exchange activities upon clients. Finally, it
incorporates an evaluation of the different aspect of the export-import process & financial performance
of the bank and recommends some measure which may help to develop the quality of the bank.

1.5 Objectives of the Report

The main objectives of this report are to concentrated on issues related to the operation of foreign
exchange department of Standard Bank Limited. However, the details objectives can be divided into two
parts and these are:
Broad Objectives:
The broad objectives of this report is to analyze the performance of foreign exchange operation of
Standard bank Ltd.
Specific Objectives:
There are some specific objectives also:
To analyze the Import and Export performance of SBL.
To analyze the Remittance performance of SBL.
To identify some problems in foreign exchange operations and make possible recommendation to

1.6 Methodology

Methods followed to perform a job or conducting activities to complete a task is called methodology. In
conducting this study the following methodology was adopted in collecting data and information,
preparation of reports etc. The methodology of report is given below.
Research Type:
This is a Descriptive Research, which briefly reveals the overall foreign exchange performance of
Standard Bank limited.
Sources of Data
To prepare this report all the necessary information collected from
Secondary sources
Secondary sources of data
Annual Reports of Standard Bank limited, 2010,2011,2012,2013,2014 &2015 other published
documents of the, Standard Banks Website.
Data Analysis and Reporting: This report has prepared after completing three months internship in
Standard Bank at Gulshan branch. So it was a great chance to observe the foreign exchange operations
of SBL very closely. Required primary data has collected from various office file and bank voucher. It is
not possible to publish that primary data for the bank secrecy. All the secondary data are attached in
appendix part. Different types of computer softwares are used to analyze collected data such asMicrosoft Word, Microsoft Excel, Microsoft PowerPoint also analyzed by the trend analysis and cross
sectional analysis.
1.7 Limitations
This report might be limited with some constraints. Details of many aspects of the services of Standard
Bank Limited have been skipped in this report due to various constraints, including time and space.
Moreover, one of the main barriers in writing this report was the confidentiality of data. Besides, for the
preparation of this report I found that there are some limitation exists though I have given my greatest
effort. Such as:

The bankers are very busy with their job which lead me little time to consult with.

Category wise export, import and remittance business; amount originated from the international
trade is missing in the report for their restriction.

In many cases, up to date information was not published.

All the branches of the sample banks were not physically visited.

Non-availability of reference books is another limitation.

Due to time limitation many of the aspects could not be discussed in the present report. Learning
all the functions within just 60 days is really tough.

However, omitting the limitations, the report will help to understand the Foreign Exchange Performance
of the Bank.

hapter -


Standard Bank Limite





: Standard Bank Limited


May 11, 1999

Commercial Operation

3rd June, 1999

Slogan of Company

: Setting a new standard in banking "

Type of Company

Main Business

Authorized Capital

: 45,000 Million

Paid up Capital

25,061 Million

Total Assets

94953 Million


: 9534 Million


: 9248 Million

No. of Employees

: 2000 employees

Total No. of Branches

: 100

ATM booth

: 19


Public Limited Company

Years in Business

16 years

SBL Logo

Commercial bank
Providing Term loans to Small Scale Enterprises and
Operating Full-fledged commercial banking service



The banking sector of Bangladesh comprises of three categories of schedule banks. These are
nationalized commercial banks (NCBs), private commercial banks (PCBs) and foreign commercial
banks (FCBs). Private commercial banks are again divided into three categories- First generation,
Second generation and Third generation. Standard bank falls into the third generation segment and
undoubtedly leads its own generation. As an intern from business discipline with major in finance I have
got the opportunity to work with this bank and try to put my effort to make a depth study.
Standard Bank Limited is a scheduled Bank under private sector established under the ambit of Bank
Company Act, 1991 and incorporated as a public limited company under Companies Act, 1994. The
Bank started commercial banking operations effective from June 06, 1999. During this short span of
time the Bank had been successful to position itself as a progressive and dynamic financial institution in
the country.

2.3 History of Organization

Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999 under
the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations on
June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes for
Corporate and Retail Banking etc. The Bank also participated in fund Syndication with other Banks.
Through all these myriad activities SBL has created a positive impact in the Market.

2.4 Vision, Mission, Core values & Objectives of SBL

To be a modern Bank having the object of building a sound national economy and to contribute
significantly to the Public Exchequer.
To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset
quality, sound management and profitability.

Core Values of Standard Bank Ltd.

Our shareholder: By ensuring fair return on their investment through generating stable profit.

Our customer: To become most caring bank by providing the most courteous and efficient
service in every area of our business.

Our employee: By promoting the well being of the members of the staff.

Community: Assuring our socially responsible corporate entity in a tangible manner through
close adherence to national policies and objective.

2.5 Objectives of the bank

The Motto of the Standard Bank limited is to explore a new horizon of innovative modern banking
creating an automated and computerized environment providing nonstop service and prepare itself to
face the new challenges of globalization and 21st century. The main objectives of Standard Bank Limited
To provide high quality products and service to attract its potential market.
To caters to the need of its corporate clients and provides a comprehensive range of financial
services to national and multinational companies.
Act as a media of exchange.
To contribute to gross domestic product.
Maintain a satisfactory deposit mix.
To help to grow entrepreneurship.
Increase loan portfolio diversification and geographical coverage.
To help to solve unemployment problem.
Provide finance and specialized services to the export.
To help to boost economic development.
To earn profit.
The bank has already co-opted technological revolution in all its spheres.

2.6 Branches of SBL

From the year 1999 to year 2015 Standard Bank Limited established 100 numbers of branches in
different districts of Bangladesh. The principal Branch located in Metropolitan Chamber Building (3RD
Floor), 122-124 Motijheel C/A, Dhaka 1000, and Bangladesh.

2.7Organization Offerings:
Standard Bank Limited is always conscious of the changing needs of customers and strives to develop
new and improved services for its valued customers. Ban offers various deposit and lending products
and services to meet all kinds of financial needs of customers. Such as

Maintain all types of account.

Make investment.

Handle foreign exchange business.

Intend other banking sector etc.

SBL also collect TITAS bill, WASA bill, Telephone bill and Electricity bill.
Communication intensity Between Managers, Assistant or the Work Teams
Communication intensity between managers, assistant or the work team is moderately high. Or
achieving any kind of organization goal, most of the frequently communicate with each other. They are
bound to maintain frequent relationship with each other.

2.8 Functions of SBL

The key function of the organization is as follows

To mobilize deposits.

To disburse investments

To handle foreign exchange and foreign business

Remittance: To remit money to home and abroad through T.T, D.D, Pay-order, Travelers cheque,

Other services: e.g. Locker service, to receive different types of bills of clients to issue
Guarantees and counseling etc.

2.9 Major Division of SBL

The banking system of Standard Bank Ltd. is divided into three major divisions. These divisions are

1) General Banking
2) Advance & Loan Banking
3) Foreign Exchange Banking.
Division of SBL
Figure-1: Division of SBL

Source: Official Document

2.10 Management hierarchy of the Standard Bank Ltd.


















Figure 3: Organizational configuration of ever Branchs, Standard Bank Ltd.


2.11 Correspondent Banking Division

The main aim of Standard bank limited is to increase its foreign exchange business and in this
connection they are doing international banking with all major banks of the world. At present they are
maintaining correspondent banking relationship with 23 major banks of the world. These are:
The Hong Ko
ng and Shanghai banking corporation. Citibank N.A., Standard chartered bank, American Express bank
ltd., Mashreq bank PSC.,Wcchovia bank, The bank of Tokyo-Mitsubishi ltd.,Union De Banques Et
Arabes Francaises, Danske bank ltd.A/S,Commerz bank ,Dresdner bank, Bank Islam Malaysia
Berhad,Nepal Bangladesh bank ltd., NIB bank ltd.,Arab Bangladesh bank ltd., AB international finance
limited, Bhutan national bank,UTI bank ltd.,The bank of Nova Scotia and ICICI bank limited Habib
bank Ag Zurich, Nordea bank and Samen bank.
Standard bank limited is maintaining drawing arrangement with 1(one) exchange house in the UK and
another 1 (one) in the USA for inward foreign currency remittance. These 2(two) exchange house are
remitting sufficient funds through our bank. Establishment of some exchange house in the U.A.E. are
going to execute very soon.

C 3
hapter -


Standard Bank Limited


The banking sector of Bangladesh comprises of three categories of schedule banks. These are
nationalized commercial banks (NCBs), private commercial banks (PCBs) and foreign commercial
banks (FCBs). Private commercial banks are again divided into three categories- First generation,
Second generation and Third generation. Standard bank falls into the third generation segment and
undoubtedly leads its own generation. As an intern from business discipline with major in finance I have
got the opportunity to work with this bank and try to put my effort to make a depth study.
Standard Bank Limited is a scheduled Bank under private sector established under the ambit of Bank
Company Act, 1991 and incorporated as a public limited company under Companies Act, 1994. The
Bank started commercial banking operations effective from June 06, 1999. During this short span of
time the Bank had been successful to position itself as a progressive and dynamic financial institution in
the country.
Standard Bank Limited, Gulshan Branch is located at,Shezad Palace 32, Gulshan North C/A Gulshan
Avenue Gulshan-2, Dhaka-1212.The branch is established in 2008.The branch consists of three divisions
(General banking, Loans ,Cridit & Advances and Foreign Exchange) and I worked in the foreign
exchange division.

3.2 Organogram of Gulshan Branch

The in-charge of the branch is SVP and the lower rank is junior officer. The positional hierarchy of
Standard Bank Limited, Gulshan Branch is given below:
Figure 4: The Positional Hierarchy of SBL, Gulshan Branch
Senior Vice President (1)
Senior Executive Officer (1)
Senior Officer (3)
Officer (1)

Probationary Officer (2)

Junior Officer (2)
Assistant Officer (1)
Staff (4)
Source: Official Document
*Data inside bracket indicate number of staff.

3.3 Major features of this branch are

Fully Computerized accounts maintenance.

A fully operational computer network which is currently being implemented. The work of Local
Area Network (LAN) and Wide Area Network (WAN) installation having reliable and secured
communication between the branches and the Head Office is in progress to facilitate any Branch
Banking and ATM Services.

Money counting machine for making cash transactions easy and prompt.

Branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of
export and import trade.

C 4
hapter -

Standard Bank Limited


General Banking

During my internship, I was placed in Gulshan-2 Branch of the Standard Bank Ltd. First I have
completed General Banking in this branch. General banking department is the heart of all banking
activities. This is the busiest and important department of a branch. General banking of this branch
consists of different sections namely,

1) Account opening section

2) Cheque Book issue
3) Dispatch Section
4) Deposit section
5) Cash section
6) Remittance section
7) Clearing section
8) Accounts section
According to the law and practice, the Banker-Customer relation arises only from contract between these
two. And opening of account is the contract that establishes the relationship between a banker and a
customer. So this section plays a very important role in attracting customer and therefore should be
handled with extra care.
According to the international code of conduct banks should maintain the following steps regarding their
customersBanks will act fairly and reasonably in all their dealings with their
Banks will help customers understand how their accounts operate and seek to give them a
good understanding of banking services.
Banks should maintain confidence in the security and integrity of banking and payment


Account opening is the gateway for clients to enter into business with bank. It is the foundation of
banker customer relationship. This is one of the most important sections of a branch, because by opening
accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various
documents are taken while opening an account. A customer can open different types of accounts through
this department. Such as:
Savings Account
Current Account


Short Term Deposit (STD) Account

Fixed Deposit Receipt (FDR) Account
Deposit Scheme Account.

4.3 Savings Account

This deposit is primarily for small-scale savers. There are certain limitations in Savings Account, i.e,
customer can draw only twice a week, if they want to get interest on the deposited money. If a customer
draws more than twice in a week he will not receive any interest for that month . Heavy withdrawals are
permitted only against prior notice. Some Important Points are as followsMinimum opening deposit of Tk.500/= is required;
Below 1.00 lac interest rate is 6%, Tk. 1.00 lac to 5.00 lac interest rate is 8%, above 5.00 lac
interest rate is 8.50%.
Minimum Tk. 500/= balance must always maintain all the time;
Withdrawal amount should not be more than 1/4th of the total balance at a time and limit
twice in a month.
Customer Benefit:
Cheque book facility
Opportunity to apply for safe deposit locker
Utility payment service
Collect foreign remittance
Transfer of fund from one branch to another by- Demand draft
- Mail transfer
- Telegraphic transfer
Online banking service.

4.4 Current Deposit Account

The Gulshan-2 branch of Standard Bank facilitates customers with different types of current account.
There are current accounts for individuals, proprietorship firms, partnership firms, joint stock company,
school, college, association, trust and N.G.O. Account opening form for these categories are different.
Some terms and documents may differ but the overall process of account opening is similar to that of the
saving account. Here I like to state what kinds of information to be furnished in the form and which
documents customer should provide.
Current Account (individual): Gulshan-2 branch uses the forms distributed by the SBL head office for
opening a current personal/ individual account. A customer should meet the following requirements to
see an account has been opened in his/ her name
Name of the applicant

Profession or business of applicant

Address of the applicant
Photographs of the applicant
Introduced by an account holder of the branch
Signature on the application form
Signature on the specimen signature card
Verification of details and signatures by authorized officer.
Current Account (Proprietorship:
To open a proprietorship current account photocopy of trade license, attached by the concerned officer,
is required along with the procedure mentioned for individual current account.
Current Account (Partnership: Opening procedure of a partnership current account is almost same as
the opening of individual current account but some additional documents are required which are follows:
Partnership deed
Letter of partnership
Trade license
Current Account (Joint Stock Company: All the formalities of individual current account opening
should be met for the opening of joint stock company, additionally following documents also should be
submitted to the bank. These documents are:
Registration certificate from Register of joint stock companies
Certificate incorporation
Memorandum of association
Articles of association
Annual audit report
Copy of board Resolution containing
Name of the persons authorized to operate the bank account on behalf of the company.
Name of the persons authorized to deal documents with the bank.
SBL current account meets the needs of individual and commercial customers through its schedule
Minimum balance :Tk 500/Interest rate
: Nil
Customer Benefit:
Cheque book facility
Opportunity to apply for safe deposit locker facility
Collect foreign remittance in both T.C. and Draft.
Transfer of fund from one branch to another by
Telegraphic Transfer
Demand Draft
Mail Transfer
Collection of cheque through clearing house

Online banking service.

4.5 Short Term Deposit (STD):

Short Term Deposit or STD account opening procedure is similar to that of the saving account. The
difference is the interest rate.
Bank Deposit:
Below 5 Crore
5-10 Crore
Over 10 Crore

Interest Rate

4.6 Other than Bank Deposit:

Public Bank Deposit: ( Govt., Semi Govt., Autonomous Body, Educational Institutions,
Association, Trust and NGO)
Upto 1 Crore
Above 1-5 Crore
Above 5-10 Crore
Above 10 Crore

Interest Rate

Private Deposit:
Upto 1 Crore
Above 1-5 Crore
Above 5-10 Crore
Above 10 Crore

Interest Rate

Minimum 7 days notice is needed for the withdrawn of the both STD. but it is now
become practice to withdrawn money by the client without any earlier notice.
If any financial organization or any autonomous bodies open this account then no excise
duty will be deducted but tax will be deducted.
Interest rate is calculated on daily basis.

4.7Fixed Deposit Receipt

Fixed Deposit is the amount deposited by the customer for a fixed period of time. It offers comparatively
higher rate of interest. For 1 month interest rate is 8.5%, for 3 months interest rate is 8.75%, for 6
months interest rate is 8.75% and for 1 year interest rate is 8.75%.
Procedure of FDR Account:
Bank provides the interested customer a Fixed Deposit form.
Customers fill the form, which contains name of the customer, amount of money,
duration, rate of interest etc.
After filling the form customer pay the money by cash or cheque.
After receiving the form from the customer the respected officer look for the cash seal or
transfer seal. If any of these are present and the form is properly signed the officer
provides a specimen signature card to the customer.
Customer signs thrice on the specimen signature card along with his or her full name.
At the same time respected officer issue a fixed deposit receipt on the specific FDR
This block includes:
Name of the customer
Amount of money deposited
Date on which the is deposited
Due date- on which the FDR will be matured.
Duration for which FDR has been made.
Rate of interest to be paid.
An FDR is renewed automatically if the customer does not come to cash it after the maturity
period. It can also be renewed upon the direction of the customer.
Interest is compounded once a quarter
Loan may be allowed up to 80% of the deposited amount under lien.
Excise duty and source tax etc. are deductible from the depositor profit.
Deposit Scheme
Under deposit scheme, the Standard Bank Ltd (SBL) offers different types of products (scheme) to help
the fixed income people to save money and meet any future financial obligations. The schemes offer a
large amount of money after a certain period of time if the account holders deposit a specific amount on
monthly basis. The schemes areI. Three stage savings scheme
II. Monthly benefit scheme
III. Marriage savings scheme
IV. Juniors savers scheme

V. Lakhpati scheme.

4.8 Three stage savings scheme (TSSS)

The scheme is designed to help the fixed income group to save money and build up a sizable fund with
which they can go for some income generating venture to improve the quality of their life and/ or meet
any future financial obligations. Any citizen of Bangladesh can open this scheme. The scheme can be
opened in the name of an individual only. TSSS is perfect for those 18 years of age or elder.
Product Name: The name of the scheme is Three Stage Savings Scheme.
Monthly Deposit Amount
To open the scheme requires monthly installment of BDT 500 or its multiple up to BDT 5000 till
maturity. This is a fixed term deposit savings scheme.
The scheme is for 2, 4 & 6 years (every 2nd year is known as a stage), interest rate 8.5% to 8.75%.
Loan Facility:
Loan may be allowed up to 80% of the deposited amount under lien on the same after at least 2(two)
years of regular payment of installments.
Monthly Benefit scheme (MBS)
The Monthly Benefit Scheme (MBS) is a deposit scheme where the depositor gets monthly benefit out
of his deposit. The scheme is designed for the benefit of persons who intend to meet the monthly budget
of their families from the income out of their deposit.
Any citizen of Bangladesh can open this scheme. The scheme can be opened in the name of an
individual only. MBS is perfect for those 18 of age or older.
To open the scheme requires deposit of BDT 1,00,000/= or its multiples but maximum BDT
1,00,00,000/=. The deposit will be for a period of 2/3/5 years and the principal amount is refundable on
Monthly Benefit: Benefit will be as per the following example:
Terms (years)

Deposit (BDT)

2 years
3 years
5 years



Benefit Payable
Tax 10% (BDT)


Deposit is the lifeblood of a bank. From the history and origin of the banking system
We know that deposit collection is the main function of a bank.
Accepting deposits:
The deposits that are accepted by Standard Bank like other banks may be classified in to,
a) Demand Deposits
b) Time Deposits
a) Demand deposits:
These deposits are withdrawn able without notice, e.g. current deposits. Standard Bank accepts demand
deposits through the opening of,i) Current account
ii) Savings account
iii) Call deposits from the fellow bankers
b) Time deposits:
A deposit which is payable at a fixed date or after a period of notice is a time deposit. Standard Bank
accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD) and Bearer
Certificate Deposit (BCD) etc.
While accepting these deposits, a contract is done between the bank and the customer. When the banker
opens an account in the name of a customer, there arises a contract between the two. This contract will
be valid one only when both the parties are competent to enter into contracts. As account opening
initiates the fundamental relationship & since the banker has to deal with different kinds of persons with
different legal status, Standard Bank officials remain very much careful about the competency of the


Banks, as a financial institution, accept surplus money from the people as deposit and give them
opportunity to withdraw the same by cheque, etc. But among the banking activities, cash department
play an important role. It does the main function of a commercial bank i.e. receiving the deposit and
paying the cash on demand. As this department deals directly with the customers, the reputation of the
bank depends much on it. The functions of a cash department are described below:

Function of Cash Department:

a.Cash Payment:
1. Cash payment is made only against cheque
2. This is the unique function of the banking system which is known as payment on demand
3. It makes payment only against its printed valid Cheque
b. Cash Receipt
1. It receives deposits from the depositors in form of cash
2. So it is the mobilization unit of the banking system
3. It collects money only its receipts forms
c. Cash packing:
After the banking hour cash is packed according to the denomination. Notes are counted and packed in
bundles and stamped with initial.


Carrying cash money is troublesome and risky. Thats why money can be transferred from one place to
another through banking channel. This is called remittance. Remittances of funds are one of the most
important aspects of the Commercial Banks in rendering services to its customers.
Types of remittance:
Between banks and non banks customer
Between banks in the same country
Between banks in the different centers.
Between banks and central bank in the same country
Between central bank of different customers.
The main instruments used by the Standard Bank of remittance of funds are
Payment order ( PO)
Demand Draft ( DD)
Telegraphic Transfer (TT)

Pay Order gives the payee the right to claim payment from the issuing bank. Payment is made from
issuing branch only. Generally remit fund within the clearinghouse area of issuing branch. Bank charge

only commission for this. However party must have an account with the bank, so that whenever the fund
refund they(party) can collect it. But for the student and the pay order for job purpose of any applicant,
account with the bank is not mandatory. Because in this case fund are non-refundable.
Demand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of
money to payee on demand. Payment is made from ordered branch. Generally remit fund outside the
clearinghouse area of issuing branch. Payee can also be the purchaser. Bank confirm through checking
the Test Code Bank charge a commission and telex charge for it.
Issuing branch requests another branch to pay specified money to the specific payee on demand by
Telegraph /Telephone. Payment is made from ordered branch. TT can be remit anywhere in the country.
Bank charge a commission plus telephone charge. However this service is available only for a limited
number of customer.
Test key Arrangement:
Test key arrangement is a secret code maintained by the banks for the authentication for their telex
messages. It is a systematic procedure by which a test number is and the person to whom this number
is given can easily authenticate the same test number by maintaining that same procedure. Standard
Bank has test key arrangement with so many banks for the authentication of LC message and for
making payment.


Cheques, Pay Order (P.O), Demand Draft (D.D.) Collection of amount of other banks on behalf of its
customer are a basic function of a Clearing Department.
Clearing is a system by which a bank can collect customers fund from one bank to another through
clearing house.
Clearing House:
Clearing House is a place where the representatives of different banks get together to receive and
deliver cheque with another banks.
Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, and
Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arrange this function.
Member Of Clearing House:
Standard Bank LTD. is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order,
1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The
scheduled banks clear the cheque drawn upon one another through the clearinghouse.

Types of Clearing:

A) Outward Clearing: When the Branches of a Bank receive cheque from its customers drawn on
the other Banks within the local clearing zone for collection through Clearing House , it is
Outward Clearing .

B) Inward Clearing: When the Banks receive cheque drawn on them from other Banks in the
Clearing House , it is Inward Clearing .

Types of clearing house: There are two type of clearing house: Those are
1) Normal clearing house
2) Same day clearing house
Normal clearing house:
1) 1st house: 1st house normally stands at 10 a.m. to 11a.m
2) 2nd house: 2nd house normally stands after 3 p.m. and it is known as return house.
Same day clearing house:
1) 1st house: 1st house normally stands at 11 a.m. to 12 p.m
2) 2nd house: 2nd house normally stands after 2 p.m. and it is known as return house.

Who will deposit cheque for Clearing: Only the regular customers i.e. who have Savings,
Current, STD & Loan Account in the bank can deposit cheque for collection of fund through
Clearing house.

Precaution at the time of cheque receiving for Clearing, Collection of LBC, OBC &

1) Name of the account holder same in the cheque & deposit slip.
2) Amount in The cheque & deposit slip must be same in words & in figure
3) Date in the cheque may be on or before (but not more than six months back) clearing
4) Bank & Branch name of the cheque, its number & date in the Deposit slip.
5) Cheque must be signed.
6) Signature for confirmation of date, amount in words / in figure Cutting &
Mutilation of cheque.
7) Cheque should be crossed (not for bearer cheque).
8) Account number in the deposit slip must be clear.
9) Depositors signature in the deposit slip.


Return house:
Return House means 2nd house where the representatives of the Bank meet after 3 p.m. to receive and
deliver dishonored cheque, which placed in the 1st Clearing House.
Cheque may be dishonored for any one of the following reasons:
1) Insufficient fund.
2) Amount in figure and word differs.
3) Cheque out of date/ post- dated.
4) Payment stopped by the drawer.
5) .Payees endorsement irregular / illegible / required.

6) Drawers signature differ / required.

7) Crossed cheque to be presented through a bank.
8) Other specific reasons not mentioned above.
The dishonor cheque entry in the Return Register & the party is informed about it. Partys signature
required in the return register to deliver the dishonor cheque. After duration, the return cheque is sent to
the partys mailing address with Return Memo.
If the cheque is dishonored due to insufficiency of funds than STANDARD Bank charges. 115/=as

4.13 Responsibility of the concerned officer for the Clearing Cheque:


Crossing of the cheque.

(Computer) posting of the cheque.
Clearing seal & proper endorsement of the cheque.
Separation of cheque from deposit slip.
Sorting of cheque 1st bank wise and then on branch wise.
Computer print 1st branch wise & then bank wise.
Preparation of 1st Clearing House computer validation sheet.
Examine computer validation sheet with the deposit slip to justify the computer posting
Copy of computer posting in the floppy disk.

4.14 Bills Collection:

In modern banking the mechanism has become complex as far as smooth transaction and safety is
concerned. Customer does pay and receive bill from their counterpart as a result of transaction.
Commercial banks duty is to collect bills on behalf of their customer.
Types of Bills for Collection

Outward Bills for Collection (OBC).

Inward Bills for Collection (IBC).

OBC means Outward Bills for Collection .OBC exists with different branches of different banks outside
the local clearing house . Normally two types of OBC :
1) OBC with different branches of other banks
2) OBC with different branches of the same bank
Procedure of OBC:
1) Entry in the OBC register.
2) Put OBC number in the cheque.
3) Crossing seal on the left corner of the cheque & payees account will be credited on
realization seal on the back of the cheque with signature of the concerned officer.
4) Despatch the OBC cheque with forwarding.
5) Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the
cheque in the OBC file.

Commission for collection:

Up to 1 lac ---------------------------------------------- 0.15%
Above 1 lac---------------------------------------------- 0.10%
Above 5lac ---------------------------------------------- 0.05%
Inward bills for collection (IBC)
When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this
case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and
the bill.
Procedure of IBC:
1. IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register
.The IBC number should put on the forwarding of the OBC with date.
2. Deposit of OBC amount: OBC cheque amount is put into the sundry deposit-sundry Creditors
account, prepare debit & credit voucher of it . If the OBC cheque is honored, send credit advice
(IBCA) with signature & advice number of the concern branch for the OBC amount.
3. If the OBC cheque is dishonored, the concerned branch is informed about it .
4. Again place in the clearing house or send the OBC cheque with Return Memo to the issuing
branch according to their information.


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. . 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
function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This
department is called as Accounts Department. If any discrepancy arises regarding any transaction this
department report to the concerned department.
Besides these, the branch has to prepare some internal statements as well as some statutory statements,
which are to be submitted to the Central Bank and the Head Office. This department prepares all these

4.16 Workings of this department:

Recording the transactions in the cashbook.
Recording the transactions in general and subsidiary ledger.
Preparing the daily position of the branch comprising of deposit and cash.
Preparing the daily Statement of Affairs showing all the assets and liability
of the branch as per General Ledger and Subsidiary Ledger separately.
Making payment of all the expenses of the branch.
Recording inters branch fund transfer and providing accounting treatment in this regard.
Preparing the monthly salary statements for the employees.
Preparing the weekly position for the branch which is sent to the Head Office
to maintain Cash Reserve Requirement (C.R.R)
Preparing the monthly position for the branch which is sent to the Head
Office to maintain Statutory Liquidity Requirement (S.L.R)
Make charges for different types of duties
Preparing the budget for the branch by fixing the target regarding profit and deposit so as to
take necessary steps to generate and mobilize deposit.
Checking of Transaction List
Recording of the vouchers in the Voucher Register.
Packing of the correct vouchers according to the debit voucher and the credit voucher

4.17 Findings :
When I done a Focus Group Discussion with the employee of Standard Bank, I got the positive as well
as negative information and also got some information from their potential clients regarding their
service. Now I can separate this information in to two perspectives. This are: Banker and Customer
Though Standard Bank has some limitation or lacking in their services but they have some positive side .
They mainly focus on accounts opening section. Their major revenue comes from accounts opening.
About 60% of their clients have a current and savings account in the bank. This makes them getting
more clients from reference to existing clients. Because they charge the least amount of balance to open
a current and saving account in the bank. Their majorities are corporate clients and most of them have
current and saving account in the bank.

4.18 Attractive scheme for exporter and importer

Standard bank offers some attractive an enthusiastic scheme for exporter and importers that enables
them to conduct sound business.
Charge Minimum Balance
For accounts opening Standard Bank charge a minimum balance which makes their clients more chance
to open an account in their bank.
Charge Low Fees
In case of opening a fixed account or savings account Standard Bank charge yearly fees which is very
low compare with other banks.
Online Banking Facilities
Standard Bank has stepped into the electronic banking age. Now, you can deposit and withdraw cash,
get mini statement, check balance and even transfer money within your accounts and pay installments
from any of the branches with online facility. This is just beginning of any branch banking under which
other branches will come soon.
Now focus the problems are:
Clearing Delay
Another problem in Standard Bank is clearing delay. Most of the department takes a long time to clear
the activities which takes a lot of time of the clients.
Queue Management
One of the major problems in Standard Bank is queue management. There is no well structured queue
management which cause clients wait for a longer period of time. Some times clients get the output after
his fellow client who makes him/her anger.
Lack of Training
Another problem among the employee of Standard Bank is lack of training. Due to lack of training
activities get hampered and delay which cause clients get frustrated.
Insufficient Employees
The major problem of Standard Bank is insufficient employees in their principal branch. Because
principal branch is the largest branch among all which cause a huge rush in the bank everyday. So due to
insufficient employees clients need to wait in the queue for a long time.

Priority Banking
Compare with Standard Chartered Bank, Standard Bank doesnt have the facilities of priority banking.
So there loyal client doesnt feel any extra facilities which feel by SCB clients.
Lack of Promotion
Like other competitive bank Standard Bank doesnt go for much more promotion for their products or
services. It causes their customers unaware about their services. When I talk to their potential clients
most of them dont know that Standard Bank have the online banking facilities. And this problem
happens due to their lack of promotion.
Lack of Communication between Management and Employees
There are lack of communication between top management and employees which cause to create a gap
between them and that makes hampered the service.
Unable to Deliver Quality Service
Due to lack of training or insufficient employees sometimes it is impossible to deliver Personal
The root problem in Standard Bank is personal reference. Without good reference it is simply impossible
to get a job or get a promotion in Standard Bank.

C 5

Recommendation and Conclusion

Standard Bank Limited

4.19 Recommendation:

As per earnest observation some suggestions for the improvement of the situation arc given below:

To attract more clients SBL has to create a new marketing strategy, which will increase the total

export-import business.
Effective and efficient initiatives are necessary to recover the default loans.

Attractive incentive package for the exporter will help to increase the export and accordingly it
will diminish the balance of payment gap of SBL.

Long-term training very much required for the foreign exchange official.

Computerized banking system and latest communication device are the most important elements
for this century. So, for the sound and stable foreign exchange operation, SBL has no alternative
but the modernization.

Foreign Exchange operations of other banks are more dynamic and less time consuming. SBL
should take some initiative to complete with those banks.

In our country financial problem is a great constraint in foreign trade. SBL is very conservative
for post-shipment finance. If bank stays in liberal position, exporters can easily over come from
financial constraint.

Bank can provide foreign market reports, which will enable the exporter to evaluate the demand
for their products in foreign countries.

Segregation of international trade transaction from the existing situation i.e. credit aspect to be
looked after by credit analyst in that department.

This department shall only remain engaged with the documentary aspects of international trade
like opening L/C for all types of import and negotiation of export bills.

The request of the credit facilities in the form of L/C (S), PAD (S), and ECC shall be assessed by
a separate department (credit department) for approval of the competent authority of the bank.
After approval of the credit lines in the account, this department shall convey to the foreign trade
department the operational conditions of the facilities to them for execution.

4.20 Conclusion

Banking sector no more depends on only on a traditional method of banking. In this competitive world
banking sector has stretched its wings wide enough to cover any kind of financial services. Not only
from the local banks but also from the foreign banks, the banks of today face a tough competition. The
major tasks of banks are to survive in this competitive environment by managing its assets and liabilities
in an efficient way. To make the assets especially loan and advances banks must have to more cautious
and otherwise these asset will became a burden for the bank. To have fruitful investment bank must have
to do the credit appraisal perfectly. Otherwise loan default culture will never end.
I have seen that Standard bank is not much different from other commercial bank of Bangladesh. It
follows the same practice and procedure which is followed by its elders. But one thing should be
mentioned that- its excellent management skills make its performance better than the previous, which
results number three in position among the commercial Bank in case financial performance.



Siddikee, M,J,A, Parvin ,S, And Hossain, M,S Banking Scenarious in

Bangladesh Bangladesh Research Publications,Journal,Vol-8,Issue-1 JanFe2013.pp 90-95 .

2. Gup, B.E, Kolari ,J,W Commercial Bank Managment, 3rd Edition

3. Madura ,J , Financila Markets and institutions
4. Rose, Peter S & Hudgins, Sylvia C 2005, Bank Mangement & Financial
Services, 6th Edition, Mc Graw Hill International Edition, New work.
5. Annual Report -2014 of SBL.
6. Several Reports in SBL Library.
7. Official website of SBL :
8. General Banking Mannual of SBL.