CHAPTER ONE

Introduction

Page49

1.1 Background of the Report:

I was assigned to Pubali Bank Limited to complete the Internship program. In consulting of the supervisor of the program I have selected a topic General Banking Activities of Pubali Bank Limited

1.2 Significance of the Report:

Only a lot of theoretical knowledge will be little important unless it is applicable in the practical life. Any academic course of the study has a great value when it has practical application in the real life. It is also known to all of us that there is no alternative of practical knowledge and the practical knowledge is much more durable and useful than the theoretical knowledge. This study will help us to draw a true picture of the practical business world, particularly of banking business and also to attain practical knowledge on the various spheres of banking business. Such an application is made possible through internship.

1.3 Scope of the Report:

This report covers the organizational overview of the Pubali Bank Limited, management and organizational structure, functions performed by the Pubali Bank Limited. It also covers overview of the general banking, identification of problems regarding general banking.

1.4 Objective of the Report

Objective of the study acts as a bond between the starting point and the goals of the study. To illustrate the objectives properly, presented into two parts:

1.4.1 General objective of the report:

To analyze the General Banking Activities of Pubali Bank Limited

1.4.2 Specific Objective: To have an expose on the banking environment of Bangladesh. Bank Limited. To evaluate the factors affecting daily work of the Bank.

Page49

To review the consumer banking service and operating system of Pubali

1.5 Methodology
Type of research
This is a Descriptive typed of research. While conducting the study, sources were explored for primary information and data. But hardly any updated data could be found. In the absence of updated information or data dependence on secondary has been inevitable. However, wherever possibly primary data has been used. Data were also collected by interviewing the responsible officers and from some documents & statements printed by the bank and the website of PBL.

1.5.1 Sources of Data

The following sources have been used for the purpose of gathering and collecting data as required. Primary data 1. Official record of PBL. 2. Practical desk work 3. Face to face conversation with the officers and clients. 4. Data collection of own supervision. Secondary Data 1. Official files and folders. 2. Annual report of PBL. 3. Working papers 4. Memo and circular 5. Published and unpublished documents 6. Website. 1.5.2 Tools and Techniques used > Microsoft Office Word

Page49

1.6 Limitations of the study

The limitations of the study are defined by the extensive of the facts covered by the study and those that left out. However, these limitations can be presented in the following lines: PBL dont want to disclose some data & information for some reasons, which could be very much useful. The first limitation is that I failed to sketch the complete picture of the Pubali Banks activities at the period of my internship programme. I have to offset with quality due to time constraint, which apparently seems to be the most severe limitation. Another limitation of this report in non-availability of the most recent data & information. In spite of all these limitations, I have tried to put the best effort as far as possible.

Page49

CHAPTER TWO

Overview of Pubali Bank Limited

Page49

2.1 History of Pubali Bank Limited

The Bank was initially emerged in the Banking scenario of the then East Pakistan as Eastern Mercantile Bank Limited at the initiative of some Bengali entrepreneurs in the year 1959 under Bank Companies Act 1913. After independence of Bangladesh in 1972 this Bank was nationalized as per policy of the Government and renamed as Pubali Bank. Subsequently due to changed circumstances this Bank was denationalized in the year 1983 as a private bank and renamed as Pubali Bank Limited. The Government of the People's Republic of Bangladesh handed over all assets and liabilities of the then Pubali Bank to the Pubali Bank Limited. Since then Pubali Bank Limited has been rendering all sorts of Commercial Banking services as the largest bank in private sector through its branch network all over the country.

2.2 About Pubali Bank Limited

Pubali Bank Limited is a scheduled private commercial bank established on May 20.1984. Licensing no Bl/DA/1/84. In exercise of the powers conferred on the Bangladesh Bank under section 28(1) of the banking companies ordinance 1962 as adopted in Bangladesh Pubali Bank Limited; Bank authorized to open the branch at 26 Dilkusha commercial area (Local Office) P.S Motijheel district Dhaka. Condition mention in this office letter no. BCD(D) 200/42(a)/145. The bank has been widely acclaimed by the business community from small entrepreneurs to large traders and industrial conglomerates within this very short period of time it has been able to create an image for itself and has earned significant reputation in the countrys Banking sector as a bank of vision. Presently it has 371 branches in operations Principal branch is one of the big and important branches of PBL. This intended to ensure the trust and confidence of the customers through focused customers orientation qualities of services and state of art technology. The company philosophy-A Bank for the 21st century has been precisely the essence of the legend of the Bank success.

PBL is one of the largest private sectors Bank in Bangladesh with years of experience. Adaptations of modern technology both in terms of equipment of banking practice ensure efficient service to clients.

Page49

2.3 Present Status of PBL

2.3.1 Capital structure of PBL:

The bank was incorporated as a public limited company under the companies act 1994. The authorized capital and paid up capital of the bank stood at Tk. 5000 million and Tk. 2940 million respectively in 2008. Out of total 24153 shareholders, Bangladesh government held 72 shares of Tk. 7200 while taka remaining shares of Tk. 2939.99 million where held by various institutions and individuals.

2.3.2 Management structure: Organizational Chart of PBL

Chairman Vice Chairman Managing Director Company Secretary General Manager Law consultant Directors

Deputy General Manager Asst. General Manager Senior Principal Officer Principal Officer Officer Junior Officer Cash Officer
Page49

2.3.3 Information Technology in Automation:

All the 371 branches have been computerized out of which 268 branches have been running successfully with the in-house developed software, PIBS (Pubali Integrated Banking System). Pubali Bank limited has implemented Centralized online Banking system in the year 2008 through its in-house developed software. The remaining branches will brought under online banking system gradually. The bank will also extend services to its customers through internet Banking and mobile phone bank phase wise shortly. The bank has developed Islamic Banking Software and 2 (two) Islamic banking wings will be opened in Dhaka and Sylhet shortly. The bank has entered into the internet world through its website www.pubalibangla.com and has also been operating Automated trailer machine(ATM) and Point of sale (POS) services to meet the demand at the time.

2.4 Other information:

Number of employees: 5534(annual report-2010) Number of branches: 399(annual report-2010)

2.5 Vision of Pubali Bank Limited

To hold the position of best private commercial bank in Bangladesh with adherence to meticulous compliance of rules and regulations and strong commitment to corporate social Responsibility.

2.6 Mission of Pubali Bank Limited

To become most remarkable and admirable private commercial bank in the country. To get recognition as a dynamic, innovative and customer service oriented bank. To keep momentum of continuous & steady growth with maximum transparency and to diversify products and resources. To expedite continuous up date of information and technology with all modern facilities to cope with demand and challenges of the time.

2.7 Corporate Objectives

> Value Addition > Quality Standard

Page49

> Growth

CHAPTER THREE
Theoretical Aspects

Page49

3. 1 Bank
An organization, usually a corporation, chartered by a state or federal government, which dose most or all of the following receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts. Depositors checks and issues drafts and cashiers checks.

3.2 Interest rate

The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value money, the credit risk of the borrower, and the inflation rate. Here interest per year divided by principal amount, expressed as a percentage, also called interest rate.

3.3 Pay order

A document which instructs a bank to pay a certain sum to a third party. Such orders are normally acknowledged by the bank which provides a guarantee that the payment will be made.

3.4 Clearing House

Clearing House is an institution established by farms engaged in similar activities to enable them to offset transactions with one another is order limit payment settlements to net balances. Clearinghouses play an important role in settling international payments and the transactions of banks and stock and commodity exchanges. In Bangladesh Bank, there is a very large room, which contains fifty (50) or more tables for each bank that is called the clearing house.

3.5 Customer satisfaction

Page49
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation.

3.6 Saving Account

Savings accounts are accounts maintained by retail financial instructions that pay interest but cannot be used directly as money (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while craning a monetary return.

3.7 Joint Account

Joint account is a bank account shared by two or more individuals. Any individual who is a member of the joint account can withdraw from the account deposit to it. Usually, joint accounts are shared between close relatives or business partners.

3.8 Remittance
Money sent from one place or person to another. A remittance economy is one dependent such money transfers, often from a family member abroad to relatives back home.

3.9 Demand Draft

A method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature In order to be cashed. Demand draft, also known as a remotely created check.

3.10 Cash
Currency (including bills and coin) in circulation, including checking account balances. Cash held by a bank, for example vault cash, requires no capital backing under risk-based capital rules adopted by bank regulatory.

Page49

3.11 Deposit Slip

A small written form that is sometimes used to deposit funds into your. A deposit slip indicates the date, the name of the depositor, the depositors account number and the amounts of checks, cash, and coin being deposited. The bank clerk typically verifies the funds received against the amounts listed on the deposit slip. A small written form that is sometimes used to deposit funds into your account. A deposit slip indicates the date, the name of the depositor, the depositors account number and the amounts of checks, cash, and coin being deposited. The bank clerk typically verifies the funds received against amounts listed on the deposit slip.

3.12 ATM
Acronym for automated teller machine, a machine at a bank branch or other location which enables a customer to perform basic banking activities (checking ones balance, withdrawing or transferring funds) even when the bank is closed.

Page49

CHAPTER FOUR

Findings and Analysis

Page49

4.1 General Banking

General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services every day.

According to World Bank, the general people understand the depositing and withdrawal of money and credit financing. But Bank performs numerous types of services. To deal these services bank has to maintain many register/ ledger and documents. Some different jobs that waive the General banking has shown in the following diagram

General Banking

A/C Opening Section

Cheque Clearing Section

Local Remittance Section

Cash & Accounts Section

Telegraphic Transfer (TT)

Demand Draft (DD)

Pay Order (PO)

Page49

4.1.1 Account Opening Section

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

Page49

4.1.2 Classification of Customer:

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

4.1.3 Different types of A/C of PBL Principal Office:

1. Current A/C: Interest free and generously withdrawal. 2. Saving Bank A/C: Interest bearing and checkable with some restriction 3. Short Notice Deposit: Usually interest bearing and with draw able on short notice. 4. Fixed deposit: Interest bearing and definite period like one year or six month. 5. Non Resident foreign currency deposit: All non residents of Bangladesh can open this interest bearing account in the form of term deposit with a minimum amount of $1000 or equivalent. 6. Private Foreign Currency A/C: Bangladeshi National residing abroad or 7. Convertible Take Amount: A type of non-interest bearing current a/c designed specially for foreigners living here. 8. Private foreign Currency A/C: Bangladeshi nationals residing abroad or foreign nationals may open this a/c with deposit mode from inward. foreign nationals may open this a/c with deposit mode from inward.

Page49

4.1.4 Documents required for opening new account:

1. Documents Common for all types of Account & Customers a. Account Opening Agreement Form b. Specimen signature cards c. Photographs of Account Holder d. Photocopy of National ID. e. Deposit Slips Book f. Cheque book Requisition slips g. Letter of mandate is required where necessary. 4.1.5 Account opening procedure: a. Customer has to fill up Account Opening Agreement From Properly. b. Supply a set normally include i) Account Agreement ii) iii) i) ii) iii) Deposit slip Book Cheque Book Requisition slip An existing Account holder of the bank Officials of the Bank not below the rank of an Junior officer A respectable person of the locality well known to the Manager or Sub- Manger of the Branch concerned. c. A number of photographs which must be duly attested by the introducer in front of the manager or responsible officer. The signature of the introducer must be attested. After being scrutinize the application and the manager or authorized officer may give his consent to open the account. d. A package with deposit book, cheque book with a unique A/C No. given to the Customer maintaining the A/C opening register book.

b. The account should properly introduced by any one of the following

Page49

4.1.6 Precautionary Measures of A/C Opening: a. Soon after the opening of a new Account a letter of Thanks should be sent to the introducer. b. A letter of thanks as per prescribed should also be sent to the account holder immediately upon opening the account, under registered post with a/c for verification of postal address as well as genuineness of the Account holder. c. In case of a new account is opened a proprietorship / partnership firm, having local business address, a responsible officer of the branch will inform the firm to obtain the confidential report on the firm.

4.1.7 Formalities for opening Current A/C and STD A/C:

These accounts are meant for business firms and corporate bodies. Initial deposit requirement is Tk 5000 in addition to common documents required to open a saving a/c following additional documents will be required for depending upon the nature of the organization.

Joint Account of two or more persons Mandate for Operation of Account: A clear authority by all the joint A/C holders containing instructions as to who will operate the account and how the account is to be operated should be obtained. The mandate should mention the name of the persons authorized to draw check. In case of death, insanity, insolvency of one or more of the joint a/c holders, the authority will cease to operate: For sole traders: ii) iii) A certificate with tax identification(TIN) number from income tax authority In case of current account an agreement to accept all responsibilities for all over draws, interest cost and expenditures i) Trade license

Page49

For Partnership firms: i) ii) iii) iv) v) vi) Trade license Notarized deed of partnership A mended in agreement form regarding operation of the account signed by the entire partnership firm Sale/ Stump of the firms 2 copy photo of all partners National ID card photocopy for all partners.

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

Page49

4.1.9 Formalities maintained for closing an account: The customer may inform the bank in writing of his/her intension to close the account. The customer has to apply to the branch in charge for closing the account. Then the in charge will remark on the account closing application for closing the account. By drawing a cheque of the whole amount and a nil balance confirmation to be taken from the account holder. Recover the unused cheque leaves and enter into the Broken cheque book register Remove the account opening form, specimen signature card and all other papers relating to the closed account. The banker may itself ask the customer to close the account when the banker finds that the account is not been operated for a long time. If the account is not operated upon for 6 months then the banker will try to do the bilateral communication with the account holder. But if the banker does not get any response from the account holder then the account becomes Dormant account. If the is not the operated upon for 2 years then the account becomes inoperative account.

For withdrawal at any amount from tat account, permission from head office or controlling office wins is required.

Page49

A new register for unclaimed deposit account will be maintained called unclaimed deposit account.

4.1.10 Interest rate on deposit:

Interest rate different types of deposit as prescribed by PBL head office from time to time irrespective of size of deposit

Type of Deposits
a. Saving deposit b. Special notice deposit 1 Core 1<25 25<50 50<100 100> c. Fixed Deposit 3 Months 6 months 1year

Interest rates
4.50% 4.5% 5% 5.5% 8.00% 8.25% 11.00% 12.00% 11.00%

4.1.11 Learning of This Section:

Signature and a/c number of the introducer and gets the signature properly verified by an authorized officer of the bank. The deposit slip properly filled in and signed by the customer in duplicate should be collected. The customer may appoint nominee who can handle his account in case of holders death even in special circumstances with the permission of the account holder. Present and permanent address with fathers or husbands name of the concerned account holder to be recorded very carefully. determined. In case of proprietorship or partnership business account proper trade license in the name of business firm should be obtained. The type of account, the prospective Customer wishes to open should be

Page49

The required Account Number for the Account from the Account Opening register should be obtained. Have to place the signature cards, advice of new account, a copy of deposit slip photographs and other necessary papers/documents etc in a file and obtain approval of the authorized officer for opening the new account.

Get each signature of the Customer/Introducer on the Advice of New a/c and on the signature cards admitted by the authorized officer of the Bank using a rubber stamp.

When delivering the cheque book account number, name of customer branch seal on each leaf of the cheque book have to check carefully..

4.2 Clearing Section

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

Page49

4.3 Local Remittance Section

This function is used to transfer of funds denominated in Bangladesh Taka between banks within the country. It is an order from the Issuing branch to the Drawee Bank/ Branch for payment of a certain sum of money to the beneficiary. The payment instruction is sent by Telex / Telegram and funds are paid to the beneficiary through his account maintained with the Drawee branch or through a pay order if no a/c is maintained with the drawee branch. The cash department does remittance of cash. Instruments of local remittances at PBL branches are follows.

Local Remittance

Telegraphic Transfer

Demand Draft (DD)

Pay Order (PO)

4.3.1 Telegraphic Transfer (TT): Telegraphic Transfer is a quick mode of remitting funds over Telephone. Now this term has used as Telephonic Transfer also which is faster than previous one for money transfer. Following points have to consider for the TT Every branch maintains a prescribed T.T. Payable Register. All the particulars of T.T are to be properly recorded in this Register duly authenticated. A separate type of T.T confirmatory advice is sent to the Drawee branch on the same day. On issuing branch, the particulars of the T.T are verified with reference to particulars already recoded in the T.T payable Register. receipt of the T.T Confirmatory advice/confirmation copy of telegram from the

Page49

On payment of T.T the particulars are to be incorporated in the Extracts Responding Debit entries as usual as usual and sent to HORC. Procedure of Issuing TT

Customers fill up a printed application form. And take Batch Number.

Cash Dept. receive cash with commission @ 15% telex charge Tk. 40. and release the Batch Number.

After release Batch Number officer make entries into the register & issue TT and issuing credit advice.

Officer prepares telex massage for drawee branch and arrange to send the same through test key

Page49

4.3.2 Demand Draft (DD)

Demand Draft is an instrument containing an order of the Issuing branch upon another branch known as Drawee branch, for payment of a certain sum of money to the payee or to his order on demand by the beneficiary presenting the draft itself. Procedure of issuing D.D Customers fill up a printed Application form. And take a Batch number. In case of Cash Cash dept. Receive cash with commission and postage stamps.

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

After clear the Batch by Cash Saction D.D Application form make entries in to the register and issue inter bank credit advice in favor of Drawee branch

The Remittance Department maintains prescribed DD Issue Register. All the required particulars of all DD issued should be entered in that Register duly authenticated. Separate folios are opened for each Drawee Branch. While issuing local Draft of Tk. 50,000/- and above, branches shall put a test number in Red-Ink on the upper portion of the drafts so that the drawee branch can immediately make payment of the DD on presentation after getting the Test agreed, if otherwise found in order.

Page49

Payment of DD When a DD is presented for payment at the paying branch its details are to be carefully examined with references to the following points. i) ii) iii) Whether the draft is drawn on their branch Whether the draft is crossed or not Amount of a crossed draft is not paid in cash to the payee but to be paid to his account with a bank. Two authorized officials of the Issuing branch must have signed draft. Their signatures are to be verified from specimen signature book let to be sure that the draft is genuine. The verifier should out his initials in red ink against the authorized signature in the draft. iv) v) vi) vii) Endorsement on the back of the draft must be regular in case the draft is presented through clearing. The amount of the draft should not exceed the amount protect graphed written in red ink on the top of the draft. The payee is to be properly identified in case of case payment. The particulars of the draft i.e. the draft number date amount and the name of payee, should be verified from the DD payable Register.

4.3.3 Pay Order:

a. Pay order issue process For issuing a pay order the client is to submit an Application to the Remittance Department in the prescribed form properly filled up and signed by application. The processing of the pay order Application form, despot of cash/cheque at the Tellers country and finally issuing a order. b. Charges For issuing each pay Order commission at the rate prescribed by Head Office is realized from the client and credited to Income A/c as usual. Up to Tk.1000 Tk.1001-100000 Tk.100, 001-500000 Tk. 10 Tk. 25 Tk. 50

Above Tk.500000Tk. 100

Page49

c. P.O issue Register The remittance Department will issue the pay Orders duly crossed A/c payee and will enter the particulars of the P.O Issued in the prescribed P.O Register duly authenticated. d. Payment of pay orders As the P. Os crossed A/c payee, the same are presented to the Issuing branch for payment either through clearing of for credit to the clients A/c. Os when presented for payment are processed in the Remittance Department. On making payment, the relative entry in the P.O Register is marked of by entering the date of payment in the P.O Register duly authenticated. The paid instrument is treated as Debit Ticket. e. Refund of Pay Order The following procedure should be followed for refund of pay order by cancellation 1. The purchase should submit a written request for refund of pay order by cancellation attaching therewith the original pay order 2. The signature of the purchaser will have to be verified from the original application form on record. 3. Manager/Sub-managers prior permission is to be obtained before refunding the amount of pay order cancellation. 4. Agreed cancellation charge is to be recovered from the application and only the amount of the pay order less cancellation charge should be refunded. 5. The pay order should be affixed with stamps cancelled under should also be canceled with RED ink but in no case should be torn. 6. The original entries are to be reversed with proper narrations. Cancellation of the pay Order should also be recorded in the pay order Issue register.

Page49

4.3.4 Learning of this Section: The contender have to carefully fills up the relevant part of the given Application form in triplicate, duly signs the same and then gives it to the Remittance Department Responsible Officer have to carefully fill up the commission part for Banks use and request the Applicant to deposit necessary cash or Cheque. The cashier after processing the application form, Cash or cheque has to validate the Application form. While transferring money using the mobile responsible officer must be careful about the phone code of each branch and note the name of responding officer of that branch. Communication through mobile must carefully handled otherwise any fraud transaction may happen. Necessary Advice has to prepare carefully considering the date, amount, branch code, customer name, transaction code etc. Debit Advice is sent to the clients a/c is debited for the amount of T.T

Page49

4.4 Cash
This section performs some important functions like cash payment and cash received. They do some other functions like opening of cash every day balance calculation.

4.4.1 Function of cash department:

Cash section is the busiest and the most vital department of the branch. All cash receipts and payment including inter branch or inter bank cash transactions are done under the cash department. Accounting and recording process of this department are very scientific, transparent and modern. All cash transactions are put into computer in batches and balances are matched. Unlike traditional banking, separate accounts are maintained for vault cash a/c and tellers cash a/c respectively. There is no strict division of work among Accounts. Each of them is doing both receipt and payment. This is possible because cash is preparing separate tellers cash position.

4.4.2 Cash Received tools:

Cash is received in following forms or slips i) ii) iii) Deposit slips (for deposit into clients account) Prize Bond Credit voucher

Cash department not only receives cash but also checks and drafts which are deposited for collection. Cash proof sheet from each teller and cash transaction with branches or BB (Bangladesh Bank) are recorded on reserve sheet to find out closing cash reserve. At the end of the day a summary cash position is prepared and matched

Page49

with actual cash position and computer balance report. If their closing position along with the subsidiary register book then the transactions of the day is ok.

4.4.3 Cash Receiving Procedure:

Received cash by the cashier at cash counter on deposit slip.

Counting the notes and checking denominations given on the back of the deposit slips.

Filling the cash proof sheet.

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

Returning the duplicate copy to the client.

4.4.4 Cash Payment tools:

1) Cheque, draft, pay order. 2) Debit voucher (Realization of FDR proceeds)

4.4.5 Cash Payment Procedure:

Presenting Check (By order or by holder)

Examination of Cheque by the cashier.

Verification whether checked by the banker.

Page49

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

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

4.4.6 Accounts Department

Accounts Department is called as the nerve Centre of the bank. In banking business transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors money. Any deviation in proper recording may obstruct public confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose functions are to check the mistakes in passing vouchers or wrong entries or fraud of forgery. This department is called as Account Department. Besides the above, the bank has to prepare some internal statements as well some statutory statements which to be submitted to the central bank. Accounts Department prepares these statements also. The department has to submit some statements to the Head Office, which is also consolidated by the Head Office later on. The tasks of the department may be seen in two different angles:

A. Daily Task: The routine daily tasks of the Accounts Departments are as follows, 1. Recording the transactions in general and subsidiary ledger. 2. Recording the transactions in the Clean cash books. 3. Preparing the daily position of the branch comprising of deposit and cash. 4. Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately. 5. Making payment of all the expenses of the branch 6. Recording Inter branch fund transfer and providing according treatment in this regard. 7. Recording of the vouchers in the Vouchers Register. credit voucher. 8. Packing of the correct vouchers according to the debit voucher and the

Page49

B. Periodical Task: The routine periodical tasks performed by the department are as follows: 1. Publishing the basic data of the branch 2. Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R) 3. Preparing the monthly salary statement for the employees. 4. Preparing the weekly positions for the branch comprising of the break of sector wise deposit, credit. 5. Preparing the quarterly statement (SBS-2 and SBS-3) where SBS-2 shows classifications of deposits excluding inter bank deposit, deposits under wage earners scheme and withdrawals from deposit account and SBS-3 shows classifications of advances (excluding inter bank) and classification of bills purchased and discounted during the quarter. Preparing the budget for the branch by fixing the target regarding profit and deposit.

Page49

CHAPTER FIVE

Major Findings

Page49

5.1 Major Findings

The signature of the account holder use in all banking activities and opening an account is really long process in PBL. PBL Cheque Clearing Section is so rush section. Local Remittance Section (TT, DD, and PO) is most used section in PBL. All day long this section faces extreme pressure. Cash section is the most vital department of the branch. All cash receipts and payment including inter branch or interbank cash transactions are done under the cash department. Account opening procedure of PBL is lengthy. The profit rate of PBL is comparatively low. Customer is not satisfied with the loan rate. PBL provide training facility for employees. The bank constantly expanding and improving its performance in terms of deposits, profits etc. Modern technical equipment such as computer is not sufficient in General Banking department. PBL local remittance business is not satisfactory. There is limited number of ATM booth. The bank is constantly expanding and improving performance.

Page49

CHAPTER SIX

Conclusion

Page49

Conclusion
This is well established statement that practical situation always differ from theoretical explanation. During the three months internship program at Mirpur Branch of PBL, almost all the desk has been observed. Have found theory deviates from the practice more or less through three months are not enough time to find out all the discrepancy between theory and practice.

As a private bank PBL is trying to extend their service to the public. A very working environment is remaining in the PBL at Mirpur Branch. During the internship program it is found that the Mirpur Branch provides all kind of general banking, investment. Such as account opening, information given, cheque clearing, remittance, loan disbursement etc. and advances analysis credit proposal and disburse credit its satisfactory.

The present customer dealing procedure is quite well at moment. The computerized transaction makes the system efficient and effective. They should also increase ATM booth, training to staff, give more attractive product etc. which may create a good result for their overall performance.

Page49

CHAPTER SEVEN

Recommendations

Page49

The following points are recommended after the study 1. Local Remittance (TT/DD/PO) business should be focused more. 2. The management should give more emphasis on the advertisement of the bank about their operations. 3. Training should be arranged for the employees for increasing expertise in using modern technology. 4. Full computerization of the branch will less the time consumption of manual process. 5. The bank should take new marketing strategy which will responds and take effective steps to increase faith on them. 6. Special initiative should be taken by the authority of PBL to distribute more profit to the depositors by investing the banks funds more efficiently. 7. Investment project should be increased. 8. Sufficient authority should be providing to the Zonal Office so that they can operate the medium & small range investment. 9. Investment power should be decentralized. 10. Operational cost should be minimized for increasing profitability. 11. PBL should try to improve the deposit investment ratio for higher productivity. 12. Bank should grant investment portfolio to more new entrepreneurs, businessmen as well as new companies. PBL should also implement better delivery system to ensure quality service to its large group of clients.

Page49

CHAPTER EIGHT
Bibliography

Page49

BOOKS:
Manual of General Banking, Published by Pubali Bank Limited. Manual of Investment, Published by Pubali Bank Limited.

Publication:
Annual report of Pubali Bank Limited (2010)

Website
www.pubalibangla.com www.google.com

Page49

Annexure

Page49

State of Classification and Provision for 5 Years of PBL

Page49

With the passage of time the bank is expanding day by day. That is what we see that the amount of deposit is increasing gradually from year 2005 to 2010.Total deposit of the bank was TK 73016.51 million during 2008 showing 18.60% increase than the previous year.

Total advances of the bank as on 31st December 2010 stood at TK. 89106.21 million showing an increase of Taka 14902.88 million @28.36% growth. Due to expansion the bank is offering more loans to its clients. That is why we see that the amount of loan is increasing gradually from year 2005 to 2010.

Page49

Diminution in value investments, exposure of Off Balance sheet items and provision of TK. 3233.09 million which is higher than previous year. Profitability of the bank has increase 20.23% in the year of 2010.

Page49