Letter of Transmittal

28th December, 2016

Ms. Mahbuba Rahman

Lecturer IBAIS Uniersity
Department of Business Administration
IBAIS University

Subject: Submission of Internship Report on “Accounting Tools & Techniques of General

Banking Activities on Jamuna Bank Ltd”

Dear Sir,

With due respect, I would like to inform you that it is a great pleasure for me to submit the
internship paper on “Accounting Tools & Techniques of General Banking Activities on
Jamuna Bank Ltd.” as requirement for BBA program. Throughout the completion of the report,
I came to know about many things regarding the current world of banking and their practices
especially evaluation of loans Performances.

Therefore, I firmly believe that this report will meet your expectations. I would genuinely
appreciate and keen enough to make further corrections where you think it is necessary. Your
kind advice will encourage me to do further research in future. Your acceptance and
appreciation would surely inspire me. For any further explanations about the report, I will be
gladly available to clarify all the things.

I shall be highly obliged if you clarify any matter or to provide any further information
regarding this report.

Sincerely Yours,

Saddam Hossain
ID-0101123809
Program: BBA
Major: Accounting
Batch: 38/A (Day)
Department of Business Administration
IBAIS University
 Declaration

I, Saddam Hossain, student of Business Administration Department (BBA Program) major in

Accounting of IBAIS University do hereby declare that the internship report “Accounting
Tools & Techniques of General Banking Activities on Jamuna Bank Ltd” has not been
submitted by me or anyone before, for any degree, diploma, title or recognition.

……………………………………
Saddam Hossain
ID-0101123809
Program: BBA
Major: Accounting
Batch: 38/A (Day)
Department of Business Administration
IBAIS University
 Supervisor Certificate

This is to certify that the internee report on “Accounting Tools & Techniques of General
Banking Activities on Jamuna Bank Ltd” For the degree Bachelor of Business
Administration (BBA) major in Finance & Banking from Dhaka International University
carried out by Saddam Hossain, Student ID: 0101123809 under my supervision. No part of
the internship report has been submitted for any degree diploma, title, or recognition before.

He is permitted to submit the internship report.

…………………………………….
Ms. Mahbuba Rahman
Lecturer IBAIS Uniersity
Department of Business Administration
IBAIS University
 Preface

Gathering knowledge from practical aspect is greatly differing from theoretical knowledge
through its operation, complexity and implementation. To justify the theoretical knowledge,
practical orientation has great importance. Internship program is a great opportunity to justify
the theoretical knowledge in respect to the practical world. So it is right decision for Faculty of
Business Studies, Department of Business Administration to introduce this type of Internship
program for the students of BBA for better understanding and orientation with the practical job
environment. As a student of BBA with the requirement of my course I was assigned to
Jamuna Bank Limited “Chistia Market Branch”, Dhaka for my internship. My internship Topic
is “Accounting Tools & Techniques of General Banking Activities on Jamuna Bank Ltd”
The Internship program basically is an opportunity to minimize the lacuna between theoretical
and practical knowledge.

As BBA student, it may be a great privilege to get in touch with the orientation as Jamuna
Bank Limited, which is undoubtedly one of the efficient and performing banking institutions in
our country. In this report I have tried my best to make the study successful for which I have
been assigned. I confess there might be some mistakes, some adolescent efforts. It will drive
happiness if I find my whole efforts serve, at least, to some extent for which it has been
prepared.

Sddam Hossain
 Acknowledgement

At first I like to express my deepest gratitude to Allah for giving me the strength and the
composure to finish the task within the scheduled time. Then I am very Grateful to the Jamuna
Bank Ltd. (JBL) for providing me the opportunity to complete my assignment.

My sincere gratitude goes to my honorable teacher Ms. Mahbuba Rahman (Lecturer IBAIS
Uniersity), without his support and encouragement this report would I haven't been possible
such an endeavor to enhance my practical knowledge about the real business world deserves
great appreciation.

I am grateful to all the staffs and all the officers of the JBL, Chistia Market Branch. They
gave me long patient hearing and sitting, practical orientation and answering my numerous
Queries nicely. This supplied the most valuable working experience and information for which
the deserved appreciation. I want to express my cordial gratitude to them, especially for
Mafuza Begum (F.A.V.P), Ilias Uddin Ahmed Chowdhury (F.A.V.P) and Yousuf
Ifthakhar (E.O.), for their cooperation without which it would not be possible to complete the
report. I also want to express my cordial gratitude to Shamin Ahmed Sagar (A.V.P &
Manager of JBL Chistia Market branch), Layla Hakim Laboni (E.O.), Yesmin Akhter
(S.O.) & Shahida Parven (A.O.) for their best co-operation and patience at the time of my
learning and working in the bank.

All the relevant things I have tried our best in order to serve the every objective of this report.
To make the best understand of the theoretical portion, relevant tables bar diagram and pie
chart has been produced.

And finally, I like to say that I have tried and soul to prepare this report accurately. However,
there might be some errors and silly mistakes due to my aptitude and time constraint. In this
regard, I seek your kind consideration and I’m in the process of learning.
 Executive Summary

Internship Report is an important attachment for any graduating and post-graduating student in
completion of his /her academic recruitments. It gives a practical knowledge about the
corporate culture where in a student is only acquainted with the theoretical knowledge
throughout his academic life. Thus it helps him to know the corporate practice, interaction with
the people professionally and matching the theories with practice.

This internship report is a partial requirement for the Bachelors of Business Administration
program. The report is based on 90 days working experience in Jamuna Bank Limited. As per
of my 3-month internship opportunity in Jamuna bank ltd I worked with different divisions of
the bank. I worked in the “Chistia Market Branch”. In this report I focus on the Accounting
Tools & Techniques of General Banking Activities on Jamuna Bank Ltd. This report gives a
clear idea of the activities, operation strategies and the performance of Jamuna Bank Limited’s
Evaluation of credit assessment along with Consumer banking Activities.

At present Jamuna Bank limited is getting the strong position in the banking sector in our
country in terms of quality services to the customers & value addition for the shareholders.
Financial soundness of any financial institution is the prime concern for its survival in the
competitive & changing business environment. This is more important in case of the banking
institutions. In this study “Accounting Tools & Techniques of General Banking Activities
on Jamuna Bank Ltd” has been described. The Bank solidified its position as one of the most
successful financial institutions & maintained satisfactory growth across many of its business
lines. So, Jamuna Bank limited is running ahead of the peak.

However, this report has been prepared as a practical completion of my BBA in Finance and
Banking of IBAIS University. As the BBA is a combination of both theoretical and practical
knowledge, I have completed an internship program of 3 months to make a balance between
my theoretical knowledge and the practical picture of the corporations.
 Acronyms
A/C: Accounts
AD: Authorized Dealer
ATM: Automated Tailor Machine
BB: Bangladesh Bank
BL: Bill of Lading
BM: Branch Manager
BOE: Bill Export
CSE: Chittagong Stock Exchange
DSE: Dhaka Stock Exchange
DD: Demand Draft
FC: Foreign Currency
FDD: Foreign Demand Draft
FDR: Fixed Deposit Receipt
FI: Financial Instrument
IPO: Initial Public offering
IRC: Import Registration form
IRR: Internal Rate OF Return
JBL: Jamuna Bank Ltd.
KYC: Know Your Customer
L/C: Letter of Credit
LDBP: Local Document Bill Purchase
LIBOR: London Inter Bank offered Rate
LIM: Loan against Imported Merchandise
LSS: Lakhpati Savings Scheme
OBC: Outward Bill for Collection
OD: Overdraft
PAD: Payment against Document
PO: Payment Order
 Table of Contents (Particular)
Title Page No.
Chapter : 1 ( Introduction) 1-4
1.1 Background 2
1.2 Origin of the Report 3
1.3 Objective of the Study 3
1.4 Scope of the Study 3
1.5 Research Methodology 4
1.7 Limitation 4
Chapter : 2 (Financial System in Bangladesh) 5-12
2.1 Types of financial market in Bangladesh 6-8
2.2 The Central Bank (Bangladesh Bank) 9
2.3 State-owned commercial banks 9
2.4 Specialized banks 10
2.5 Foreign commercial banks 10
2.6 Private commercial banks 11
2.7 Non-banking financial institutions 12
Chapter : 3 ( Organizational Profile) 13-22
3.1 At a Glance of JBL 14
3.2 History 14
3.3 Mission and Vision 15
3.4 Objectives of JBL 15
3.5 Core Values 15
3.6 Jamuna Bank Chronicles 16
3.7 Bank Profile 17
3.8 Corporate Directory 17
3.9 Management 17
3.10 Ownership structure 18
3.11 Product /Service Offering 18
3.12 Islami Banking Service 18
3.13 Portfolio Management Service 19
3.14 JBL Special Banking Services: 19
3.15 JBL Corporate Banking Services 19
3.16 Types of Deposit account 20
3.17 Special Deposit Schemes 20
3.18 Types of loan of what are offered by Jamuna Bank Limited 21
3.19 Online Banking and Software 21
3.20 Organizational Structure 22
3.21 Swift Code 22
3.22 Branches of JBL 22
Chapter : 4 ( Branch Profile & Job Description) 23-31
4.1 Branch Profile (Chistia Market Branch) 24
4.2 Management Structure (In Chistia Market Branch) 24
4.3 General Banking: 25-27
4.4 Credit Department 27
4.5 Foreign Exchange Department 28
4.6 Job Description: 28-29
4.7 Consumer Banking: 29-30
4.8 Some Additional Service 30-31
4.9 Other Services / Electronic Products: 31
Chapter : 5 (Credit Management policy of JBL) 32-50
5.1 Credit Department of JBL 31-36
5.2 Different Types of Credit Facilities 37-40
5.3 Interest Rates of Loans & Advances 40
5.4 Securities against Advances 41
5.5 Sector Wise payment of Loans 42
5.6 How Jamuna bank recovers their Loan 42-43
5.7 Problems in Loan Recovery 43-44
5.8 Overall Procedure for Sanctioning Loan 44-48
5.9 Computation of Credit Risk Grading 49-50
Chapter : 6 (Financial Analysis of JBL) 51-55
6.1 Company Highlights 52
6.2 Five (5) Year key Financial Data & Ratio of JBL 53
6.3 Financial Highlights 54
6.4 Distribution of Share in 2014 54
6.5 Total Capital Structure- JBL 55
6.6 Market Price Information 2014 55
Chapter : 7 (Empirical Analysis) 56-74
7.1 Credit Distribution 57-58
7.2 Sector Wise Credit Distribution 59
7.3 Geographical Location Wise Loan & Advances 60
7.4 Classification Status of Loan 61
7.5 Interest Earn on Lending 62
7.6 Ratio Analysis 63-64
7.7 Provision for Loan 65-66
7.8 Trend Analysis 67
7.9 Asset Quality Standards 68
7.10 Hypothesis Testing 69
7.11 SWOT Analysis 70-73
7.12 Findings 74
Chapter : 8 (Recommendation & Conclusions) 75-78
8.1 Recommendations 76
8.2 Conclusions 77
8.3 Reference 78

Table of Contents (Table)

Title Page No.
Table 1: Jamuna Bank Chronicles (Source: Annual Report of JBL 2014) 16
Table 2: Bank Profile (Source: Annual Report of JBL 2014) 17
Table 3: Corporate Directory (Source: Annual Report of JBL 2014) 17
Table 4: Product / Service Offering (Source: Jamuna Bank Website) 18
Table 5: JBL Corporate Banking Service (Source: Jamuna Bank Website) 19
Table 6: Special Deposit Schemes (Source: Jamuna Bank Website) 20
Table 7: Branch Profile (Chistia Market Branch) 24
Table 8: Cash Limit (Chistia Market Branch) 26
Table 9: Credit Rating Ratio 34
Table 10: Interest Rate of Loan & Advance 40
Table 11: Security against Advance 41
Table 12: Sector Wise payment of Loans 42
Table 13: Allocate weights to Principal Risk Components 50
Table 14: Establish the Key Parameters 50
Table 15: Company Highlights 52
Table 16: Basic Market Information 52
Table 17: Five Year Key Financial Data 53
Table 18: Financial Highlights 54
Table 19: Distribution of Share in 2014 54
Table 20: Total Capital Structure 55
Table 21: Market Price Information 55
Table 22: Year wise Deposit 57
Table 23: Year wise loan & Advances 58
Table 24: Classification status of Loan 61
Table 25: Interest earn on Lending 62
Table 26: Non Performance Loan Ratio 63
Table 27: Loan to Deposit Ratio 64
Table 28: Provision for Unclassified Loan 65
Table 29: Provision for Classified Loan 66
Table 30: Trend Analysis 67
Table 31: Loan provision to nonperforming loan ratio 68
Table 32: Loan provision to loan ratio 68
Table 33: To provision to asset ratio 68
Table 34: Summarizations of variables 69

Table of Contents (Graph)

Title Page No.
Graph 1: Financial system of Bangladesh 08
Graph 2: Organizational Structure 22
Graph 3: Management Structure (Chistia Market Branch) 24
Graph 4: Loan Approval Flow Chart 46
Graph 5: Process Flow for Loan Disbursement 48
Graph 6: Closing Price 52
Graph 7: Yearly Price Trend 52
Graph 8: Share Holding Position 54
Graph 9: Market Price Information of DSE & CSE 55
Graph 10: Year wise Deposit 57
Graph 11: Year wise loan & Advances 58
Graph 12: Sector Wise Credit Distribution 59
Graph 13: Geographical location wise and & advances 60
Graph 14: Classification of loan 61
Graph 15: Interest on Lending 62
Graph 16: Non Performance Loan Ratio 63
Graph 17: Loan to Deposit Ratio 64
Graph 18: Unclassified loan 65
Graph 19: Classified loan 66
Graph 20: ROE vs. Percentage of NPL 69