UNIVERSITY OF DHAKA

INTERNSHIP REPORT
ON
“GENERAL BANKING ACTIVITIES OF NATIONAL BANK
LIMITED”

An Internship Report Presented to the Faculty of Business Administration in Partial

Fulfillment of the Requirements for the Degree of Master of Business Administration

Submitted To
Dr. Tahmina Khatun
Professor
Department of AIS
University of Dhaka

Submitted By
IQBAL HASSAN BHUIYAN
ID: 11326039
Batch: 26th
Department of AIS
University of Dhaka
Date of Submission: May 10, 2018.
 INTERNSHIP REPORT
ON
“GENERAL BANKING ACTIVITIES OF NATIONAL BANK
LIMITED”
 Letter of Transmittal

May 10, 2018.

Dr. Tahmina Khatun

Professor
Department of AIS
University of Dhaka

Subject: Submission of Internship Report.

Dear Madam,
As a partial fulfillment of Master of Business Administration (MBA) in University of Dhaka
(DU), I did my internship in National Bank Ltd. Shimanto Squire branch. I have the pleasure
to submit herewith copy of the internship report on “A Working Report on General Banking
Activities of National Bank Limited Shimanto Squire branch”.

I have done my level best to complete the report in time and with the quality of my
expectation. The whole experience of this report enables me to get an insight in the real life
situation. The experience I have achieved during time of preparing the term paper will help
me greatly in my career. I have really enjoyed doing my internship in National Bank Ltd. I
hope that the report will meet your expectations and standards.

I request you to accept this report and forward it for further evaluation.

Yours sincerely

Iqbal Hassan Bhuiyan

ID: 11326039 Batch: 26th
MBA (Evening) Program
Department of AIS
University of Dhaka
i
 Letter of Endorsement

The Internship Report entitled “General Banking Activities of National Bank Ltd.” has been
submitted to the department of Accounting & Information Systems for the degree of Master
of Business Administration, Faculty of Business Administration on May 10, 2018 by Iqbal
Hassan Bhuiyan, Id: 11326039. The report has been accepted and may be presented to the
Internship Defense Committee for evaluation.

(Any opinions, suggestions made in this report are entirely that of the author of the report.
The university does not condone nor reject any of these opinions or suggestions.)

____________________
Dr. Tahmina KHatun
Professor
Department of AIS
University of Dhaka
Internship Supervisor

ii
 Acknowledgement

All praise is to the one to one to whom all dignity, honor and glory are due, the unique with
perfect attributes, who begets not, nor is he begotten. He has not equaled, but he is Almighty,
omnipotent for preparing fruitfully this internship reports.

While preparing the report, I got immense encouragement and full guidance given by my
Internship supervisor Dr. Tahmina Khatun, Professor, Department of Accounting &
Information Systems, without her relentless support, it would have been impossible to
conduct this study. I also express my gratitude to my supervisor for providing me detailed
feedback and technical assistance on preparing the report.

Then, I grateful to my job supervisor, Md. Abu Sayeed Dipak, Vice President, „National
Bank Limited‟ under whose supervision I have done my internship successful. He was very
generous and friendly with me. I am greatly thankful to him.

Finally, I am grateful to all the cooperative staffs of Shimanto Squire Branch, National bank
Ltd. This acknowledgement is not enough to tell them how profound the impact of their
opinion is on this report, how indebted I am to them. I express my heartiest gratitude to all
of them. This report is not free from limitations. There might still be some minor mistakes
such as typing errors despite my utmost care. I apologize for this.

iii
 Executive Summary
In recent years banks have diversified their services by creating new subsidiaries that perform
additional services or by merging with other types of financial institutions. National Bank
Ltd. was established as a banking company. There are different types of activities involved in
the banks. A bank collects money from the people through some special types of products
and all the collected money invests in the different sectors at higher interest rates. This
investment process is dealt in the loan and advance departments of National Bank Limited.
As an intern in National Bank, this internship report has been prepared. This report aims
toward providing an overview on the general banking system of National Bank Limited.
While preparing this report it has been tried to reveal the insights of the general banking
system of the bank. While discussing the different aspects of general banking activities of the
bank, priority has been given to depict the real situation in National Bank Limited are
concerned by employing the experience gathered during the internship program. It is focused
some theoretical aspect of the general banking in this report. From the analysis of the findings
during internship period a few recommendations were also prescribed in this report. Analysis
on the findings is basically done to sort out the major aspects of the general banking systems
and to draw some significant inferences. This report will provide the critical aspect of the
general banking of the National Bank Limited.
 TABLE OF CONTENT

Serial No. Particular Page No.

Cover page
Letter of transmittal I
Letter of Endorsement ii
Acknowledgement iii
Executive Summary iv
Chapter One Introduction
1.0 Origin of report 1
1.1 Objectives of the study 1-2
1.2 Research Methodology of 2-3
the study
1.3 Scope of the study 3
1.4 Limitation of the study 3-4

Chapter Two Company Overview

2.0 Introduction 5
2.1 History of National bank 5-6
Ltd
2.2 Division of NBL 6
2.3 Board of director of NBL 7
2.4 At a glance of NBL 8-9
2.5 Mission 9
2.6 Vision 9
2.7 Values and Commitments 10
2.8 Objectives of NBL 10-11
2.9 Principles and Values of 11
NBL
2.10 Special Characteristics 11-12
2.11 Management hierarchy of 12
NBL
2.12 Tongi Branch of NBL 13
2.13 Organ gram of Tongi 13
branch
2.14 Strategies of NBL 14
2.15 Department of the branch 14
2.16 Functions of NBL 14-15
2.17 SWOT Analysis 15

2.18 Operating and financial 16-19

performance

Chapter Three General Banking

Activities
3.0 General Banking 22
3.1 Various Types of Deposit 22-26
Account
3.2 Credit Procedure 27-28
3.3 Cards 28-29
3.4 Cash Section 29
3.5 Functions of Cash 29-30
Payment
3.6 Cash Payment or Cheque 30
Cancellation Process
3.7 Books Maintained by Cash 30
Section
3.8 General Procedure of 30-33
Account Opening
3.9 General Procedure of 33
Account Closing
3.10 Cheque Clearing Section 33-34
3.11 Banker‟s Cheque (BC) 34
3.12 Online Banking Service 34
3.13 A- Inter Branch Credit 35
 Advice (IBCA)
3.14 B- Inter Branch Debit 35
Advice (IBDA)
3.15 Remittance Section 35-36
3.16 Payment Order 36
3.17 Demand Draft (D.D) 36-37
3.18 Telegraphic Transfer (T.T) 37

Chapter Four Result & Discussion

4.0 Savings Account 38-39
4.1 Current Deposit 39-40
4.2 Millionaire Deposit 41-42
Scheme
4.3 Fixed Deposit 42-43

Chapter Five Work Perform

5.0 Actual task part 44
5.1 Job Responsibilities 44-46

Chapter Six Findings,

Recommendation &
Conclusion
6.0 Findings 47
6.1 Recommendations 47
6.2 Conclusion 47-48

Bibliography 49
Acronyms 50
1.0 Origin of Report:

As a mandatory part the EMBA Program, all the students of the faculty of Business Studies,
University of Dhaka have to undergo a three month long internship program with an
objective of gaining practical knowledge about current business world. After this internship
program each and every students have to submit an internship report mentioning their
activities during the internship program .The primary goal of internship is to provide an on-
the-job exposure to the student and an opportunity to know how to implement theoretical
concepts in real life situations. Students are placed in enterprises, organizations, research
institutions and as well as in development projects. As a part of the internship program,
National Bank Limited, Shimanto Square Branch was preferable to me.

This report is the result of internship program conducted in National Bank Limited and is
prepared as a partial requirement for the completion of the MBA(Evening) program of
University of Dhaka. As a result this report is submitted based on the “General Banking
Activities of National Bank Limited” (NBL). This report also includes information on the
products and services of National Bank Limited, the overview of the organization and also
facilities they offer to satisfy their customers.

Purpose of the report:

The internship program and the study have following purposes:

 To get and organize detail knowledge on the job responsibility.

 To experience the real business world.

 To fulfill the requirement of MBA(Evening) Program.

1.1 Objectives Of the Study:

The prime objective of the study is to gather practical knowledge and to bridge between the
theoretical knowledge and the real world situation. Naturally, the main objective of this
report is to get practical exposure and know about the total general Banking operation of the
National Bank Limited. Therefore the specific objectives of the study are as follows:
(a) Main Objectives:
The main objective of the report is to assess the General banking activities of National
Bank Ltd. Shimanto Square Branch.
(b) Specific Objective:

 To develop the theoretical knowledge by the practical orientation of work.

 To get an overview of the General banking activities of NBL.

 To analysis the performance to commercial activities of NBL and to examine the

profitability and productivity of the bank.

 To identify the problem of general banking activities of NBL.

 To learn about General procedure of the Bank.

 To evaluate the performance of general banking activities of NBL.

 To make a bridge between the theories and practical procedures of banking day to day
operations that will be helpful for my future career.

 To observe the working environment in commercial banks and to study existing

banker-customer relationship.

1.2 Research Methodology of the Study:

The report is prepared on the basis of information collected from primary and secondary
sources. The secondary information is collected from NBL achieve, Annual report,
Magazines and staff of the bank and primary data collected from banks official as well as
customers. Majority information was collected from secondary sources.

Primary Data Secondary Data

Both primary and secondary data sources were used to generate the report.
Primary sources: Primary sources are as follows:

 Face to face conversation with the respective officers and staff of the bank.

 Informal conversation with the bankers.

 Practical work exposure from the different desks six departments of the banks.

 Study of relevant flies as instructed by the officers concerned.

 Personal dairy (that contains every day experience in the bank while undergoing
practical orientation).

Secondary Sources: the secondary sources of data and information are:

 Annual Report of National Bank Ltd.

 Annual reports other bank.

 Periodicals published by Bangladesh Bank

 Various books, articles, compilations etc, regarding general banking functions.

 Personal dairy maintained while undergoing the practical orientation.

 I also collected data from NBL web site www.nbl.com.bd

1.3 Scope of the Study:

The scope of the study on general banking practices of National Bank limited is enjoying an
eminent image is vast and it is hardly possible to became familiarized with the total operation
of the bank decently within a short period of time. In this report it has been tried to focus on
the general Banking activities of the bank. Therefore, I had limited my scope within all
applications of those. To make it a complete report I had to perform my tasks in a routine
way. The scope of the report encompasses the areas covered by the organization part,
Evaluation part, an Analysis part. Maximum endeavor has been carried out to focus on the
total commercial Banking operation conducting the bank, which has included in the report.
The organization part started with the history of National Bank Limited and end with ultimate
activities of the National Bank
1.4 Limitation of the study:
During ground work of this report some obstacles have come across, which can be termed as
the limitation of the project, these reasons did not allow this report to go in-depth of issues
hence several parts of the report is not concentrated. Therefore the limitations that were
faced:
 The website of the bank is not provided enough information.
 Unfortunately due to the bank‟s limitations (Business secrecy and
Confidentiality), it was difficult to acquire sufficient information.
 Shortness of time.
 Improper combination among various departments.
 Foreign Exchange Department process and procedures are quiet complicated
and huge formalities are maintained.
2.0 Introduction:
The commercial banking activities of NBL encompass a wide range of services including
accepting deposits, making loans, discounting bills, conducting money transfer and foreign
exchange transactions, and performing other related services such as safe keeping, collections
issuing guarantees, acceptances and letters of credit.
2.1 History of National Bank Limited:
National Bank Limited has its prosperous past, glorious present, prospective future and under
processing projects and activities. Established as the first private sector bank fully owned by
Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with
the passage of time after facing many stress and strain. The members of the board of directors
are creative businessmen and leading industrialists of the country. To keep pace with time
and in harmony with national and international economic activities and for rendering all
modern services, NBL, as a financial institution, automated all its branches with computer
networks in accordance with the competitive commercial demand of time. Moreover,
considering its forth-coming future, the infrastructure of the Bank has been rearranging. The
expectation of all class businessmen, entrepreneurs and general public is much more to NBL.
At present we have 191 branches under our branch network. In addition, our effective and
diversified approach to seize the market opportunities is going on as continuous process to
accommodate new customers by developing and expanding rural, SME financing and
offshore banking facilities.
The emergence of National Bank Limited in the private sector was an important event in the
Banking arena of Bangladesh. When the nation was in the grip of severe recession, the
government took the farsighted decision to allow the private sector to revive the economy of
the country. Several dynamic entrepreneurs came forward for establishing a bank with a
motto to revitalize the economy of the country.
National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the
private sector. From the very inception, it was the firm determination of National Bank
Limited to play a vital role in the national economy. We are determined to bring back the
long forgotten taste of banking services and flavors. We want to serve each one promptly and
with a sense of dedication and dignity.
Then the President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury
inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha
Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch
was opened on 11th May 1983 at Khatungonj, Chittagong.
At present, NBL has been carrying on business through its 191 branches & Agri Branches
spread all over the country. Since the very beginning, the bank has exerted much emphasis on
overseas operations and handled a sizable quantum of home bound foreign remittance. It has
drawing arrangements with 415 correspondents in 75 countries of the world, as well as with
37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank
to establish agency arrangements with the world famous Western Union in order to facilitate
quick and safe remittance of the valuable foreign exchanges earned by the expatriate
Bangladeshi nationals. This has meant that the expatriates can remit their hard-earned money
to the country with much ease, confidence, safety and speed.
2.2 Division of NBL:
1. Audit & Inspection Division.
2. ATM Card Division
3. Board Secretariat
4. Budget & Monitoring Division.
5. Credit Division-1.
6. Credit Division.-2.
7. Credit Card Division.
8. Classified Loan Recovery Division.
9. Financial Administration Division.
10. General Banking Division
11. Human Resources Division.
12. International Division.
13. Information System & Technology Division.
14. Law & Recovery Division.
15. Marketing Division.
16. Merchant Banking Division.
17. Public Relations Division.
18. Protocol Division.
19. Reconciliation Division.
20. System & Operations Division.
2.3 Board of Directors of NBL:

Mr. Zainul Haque Sikder

Chairman

Mrs. Monowara Sikder Ms. Parveen Haque Sikder Alhaj Khalilur Rahman
Director Director Director

Mr. Moazzam Hossain Mr . Zakaria Taher Mr. Rick Haque Sikder

Director Director Director

Mr. Ron Haque Sikder Mr. Mabroor Hossain Mr. Jonas Khan Sikder
Director Director Director

Mr. Md. Anwar Hussain Mr. Md. Mahbubur Rahman Mr. A K M Enamul Hoque
Independent Director Khan Shameem
Independent Director Independent Director

Mr. A F M Shariful Islam

Managing Director

Figure 1: Board of Directors of National

2.4 At a glance of NBL

Name National Bank Limited
National Bank Ltd. was created and
commencement of
History
Business started on 23rd March 1983.

Year of establishment: 1983

18, Dilkusha Commercial Area

Registered Office Dhaka –1000, Bangladesh

Nature of organization: Private Commercial Bank.

Logo

“A Bank for Performance with Potential”

Name of the Chairman Mr. Zainul Haque Sikder

Philosophy of the Bank A Bank for Performance with Potential

Name of the managing Director Mr. A F M Shariful Islam

Number of branches 191

Services provided Deposit Scheme, credit facility and foreign

exchange services

Diversification of Product And Corporate banking, Retail Banking

Services

Paid up capital ( Million) 17177.20

Publicly Traded Company Shared quoted daily in DSE & CSE

Banking operation system Both conventional and foreign exchange

system

Technology used Member of SWIFT, online banking, UNIX

 based computer system

Number of Employees 4266

Market value per share 9.40

E-mail ho@nblbd.com

Website http://www.nbl.com.bd

SWIFT NBLBBDDH

Number of ATMs 10

Total Assets (Million) 281569.21

Number of Subsidiaries 07

Table 1: at a glance of NBL

(Source: Annual Report of NBL, 2016)

2.5 Mission:

Quality financial services adopting the latest technology.

Fast and efficient customer service.

Maintaining high standard of business ethics

Balanced growth.

Steady & competitive return on shareholders' equity.

Innovative banking at a competitive price.

Attract and retain quality human resources

Extending competitive compensation packages to the employees.

Firm commitment to the growth of national economy.

Involving more in Micro and SME financing.
2.6 Vision
Ensuring highest standard of clientele services through best application of latest information
technology, making due contribution to the national economy and establishing ourselves
firmly at home and abroad as a front ranking bank of the country are our cherished vision

2.7 Values & Commitments:

Values:
NBL values are based upon the fundamental principles that define our culture and are brought
life in our attitude and behavior. It is their values that make us unique and seen from five
basic principles:
Excellence: The market is which NBL operate is becoming increasing competitive and their
customers now have abundance of choice.
Integrity: NBL success depends upon trust. Their customers are society in general expect us
to process and steadfastly to high moral principle and profession standard.
Customer focus: NBL need to understand fully the needs of their customers and to adapt our
product and service to meet these.
Meritocracy: NBL believes in giving opportunities and advantage to its employee son the
basic of their ability.
Progressiveness: NBL believes in the achievement of society through the adoption of
enlightened working practice innovative new product and process sprite of enterprise.
Commitments:
 Ours is a customer focused modern Banking making sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading
Bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium
scale enterprises, as well as corporate clients through our branches across the country.
 Our business initiatives are designed to match the changing trade & industrial needs
of the clients.
2.8 Objectives of NBL:
The objectives of National Bank are mentioned below:
 Offering quick and improved clientele services through application of modern
information technology.
 Playing an important role in the national progress by including improved banker
customer relationship.
 To ensure highest possible dividend to the respected shareholders by making best use
of their equity.
 Pushing the policy of nurturing balanced growth of the bank in all sectors.
 Consolidate our position in the competitive market by introducing innovate banking
products.
  By ensuring highest professional excellence for our workforce through enhancement
of their work efficiency, discipline and technological knowledge.
 Expanding the bank‟s area of investment by taking part in syndicated large loan
financing.
 Increasing finances to small and medium enterprise sector including agriculture and
agro based industries, thus making due contribution to the national economy.

2.9 Principles and values of NBL:

The National Bank Limited is committed to some core business principles:
 Outstanding customer service.
 Effective and efficient operations.
 Strong capital and liquidity.
 Prudent lending policy.
 Strict expense discipline.
 Loyal and committed employees who make lasting customer relationships and
international teamwork easier to achieve support the business principles.
 National Bank Limited also operates according to certain key business values.
 The highest personal standards of integrity at all levels.
 Commitment to truth and fair dealing.

2.10 Special Characteristics:


To introduce a welfare-oriented banking system and also to establish equity and

justice in the field of all economic operations.


The operation of the bank is computer oriented to ensure prompt and efficient services

to the customer.


The bank has introduced camera surveillance system (CCTV) to strengthen the

security services inside the bank premises.


Extend socio-economic and financial services to individuals of all economic

backgrounds with strong commitment in rural uplift.


Plays a vital role in human resources development and employment-generation

particularly among the unemployed youths.

 Portfolio of investment and investment policy have been specially tailored to achieve

balanced growth and equitable development through diversified investment operation

particularly in the priority sectors and in the less developed areas of the national

economy
 2.11 Management Hierarchy of National Bank Limited:
Additional Deputy
Managing Director
Deputy Managing
Director
Senior Executive
Vice President
Executive Vice
President
Senior Vice President

Vice President

Senior Assistant Vice

President
First Assistant Vice
President
Assistant Vice
President

Senior Principle
Officer
Principle Officer

Senior Officer

Officer

Junior Officer

Assistant Officer

Trainee Assistant
Officer
2.12Shimanto Square Branch of National Bank Ltd:

The 66thbranch of NBL is the Shimanto Square this branch is situated in L.K Plaza Shimanto

Square Bazar, Shimanto Square, Dhaka. This branch is inaugurated at 25 October 2010; the

manager of this branch is S.M. Zahirul Haque. He also got the position of SVP of NBL. This

branch has also got 19 efficient and responsible employees. Although this branch has past

seven years, it has created positive image not only to the NBL but also among the customer.

The management of this branch always tries to provide better service to its customer and

behave well with them. Basically, this branch‟s major portion of customers is corporate.

2.13 Organogram of Shimanto Square Branch:

2.14 Strategies of National Bank Limited:

  To identify customer credit and other banking needs and monitor their
perception towards our performance in meeting those and update
requirement.
 To strive for customer satisfaction through quality control and delivery of
timely services.
 To manage and operate the bank in the most efficient manner to enhance
financial performance and to control cost of fund.
 To increase direct contract with customer in order to cultivate a closer
relationship
 To train and develop all employs and provide them adequate resources so
that customer need can responsibility addressed.
 To review and update policies procedures and practices to enhance the ability to
extend better services to customers.

2.15 Department of the Branch:

 Accounts opening department
 Cash department
 Remittance department
 Accounts department
 Investment department
 Foreign exchange department
 Loans and Advances department
 Clearing department

2.16 Functions of National Bank Limited:

Some general functions of National bank are given below:
 Maintain all types of deposit Accounts.
 Make investment in different sectors.
 Conduct of foreign exchange business.
 Perform other banking services.
 Perform social welfare activities.
 To work for continues business innovation and improvements.
  Ensure the best uses of its creativity, well disciplined, well manages and
perfect growth.

2.17 SWOT Analysis:

By analyzing the performance of National Bank limited. I get the following Strengths,
Weaknesses, Opportunities and Threats:
Strengths:
 NBL is the first generation private bank in Bangladesh.
 It has well reputation in the market.
 Not engaged in unfair business practice.
 Executives are highly educated and experienced.
 Bank has many attractive deposit schemes.
 Well-furnished and Air-condition facilities.
 Efficient management practice in the Bank.
 Located in important commercial area.
Weaknesses:
 Officers in the junior level are not highly qualified.
 Absence of long-term credit.
 Small market shares in banking business.
 Lack of promotional activities.
Opportunities:
 Can increase the credit scheme.
 Private Banks becomes more reliable to local public.
 Have opportunity to increase market share.
 Private Banks can contribute more in the economic development of our country.
 By doing social welfare activities it can create a good impact on public mind.
Threats:
 There are many competitors in the market.
 Govt. pressures to reduce interest rate.
 Banking technologies are changed.
 Govt. imposes tax & VAT on profit.

2.18 Operating and Financial Performance:

 2012 2013 2014 2015 2016
Particulars
(in millions) (in millions) (in millions) (in millions) (in millions)

Income Statement
Interest Income 14434.75 19103.18 18981.41 20621.01 19504.69
Interest Expenses 9188.82 13,679.66 16,166.14 16,511.70 16,571.69
Non-Interest Income 7496.72 6,618.46 7,976.37 8,406.29 10,143.66
Non-Interest
3150.70 8,316.78 7,251.73 5,793.21 4,816.51
Expenses
Profit before Tax
9591.94 3,725.20 3,539.91 6,722.39 8,260.14
and Provision
Profit after Tax 6085.70 1,487.91 2,116.59 2,660.29 3,854.03
Balance Sheet
Authorized Capital 17,500.00 17,500.00 17,500.00 17,500.00 17,500.00
Paid-up Capital 8,603.65 14,196.03 14,196.03 15,615.64 17,177.20
Reserve Fund &
12,918.92 8,178.24 9,733.61 11,348.31 16,380.76
Surplus
Total Shareholders‟
21,522.57 22,374.27 23,929.64 26,963.95 33,557.96
Equity
Deposits 128,215.97 157,331.73 193,642.97 203,296.18 222,112.91
Loans and Advances 115,388.89 126,169.79 151,098.98 172,964.72 186,179.45
Investments 30,334.69 54,326.46 56,827.52 54,885.52 59,658.52
Fixed Assets
(inclnon banking 2,310.94 2,340.19 2,973.25 3,099.34 3,084.08
assets)
Total Assets 169,037.38 205,207.33 235,173.80 256,537.46 281,569.21
Off Balance Sheet
Exposure 44,392.67 50,484.49 74,399.30 63,525.84 51,470.56

Foreign Exchange Business

Import 104,570.90 94,137.40 113,492.00 99,994.10 85,598.27

Export 60,893.90 69,062.90 75,912.41 76,459.20 67,888.84
Remittance 54,469.40 66,513.90 58,224.10 58,351.40 56,321.08

Regulatory Capital Measures

Total Risk Weighted
196,812.40 206,559.20 236,911.20 249,560.60 259,355.90
Assets
Core Capital (Tier I) 20,315.95 21,763.88 23,028.71 24,320.29 27,223.26
Supplementary
4,589.07 4,696.48 4,676.76 4,897.27 4,041.07
Capital (Tier II
Total Capital 24,905.02 26,460.36 27,705.47 29,217.56 31,264.33
Tier I Capital Ratio 10.32% 10.53% 9.72% 9.75% 10.50%
Tier II Capital Ratio 2.33% 2.27% 1.97% 1.96% 1.55%
Total Capital
12.65% 12.80% 11.69% 11.71% 12.05%
Adequacy Ratio

Credit Quality
% of NPLs to Total
2.83% 4.32% 3.24% 5.26% 7.01%
Loans and Advances
Share Information
No of Shareholders
72,374 106,988 121,350 111,363 91,585
(In actual number)
No of Shares
Outstanding 860.37 1,419.60 1,419.60 1,561.56 1,717.72
(million)

Earnings Per Share

Basic (Re-stated) 4.29 1.05 1.36 1.55 2.24
Diluted - - - - -
Dividend Per Share
Cash - 6% - - -
Stock 65% - 10% 10% 15%
Market Price Per
66.80 22.10 11.80 11.40 9.40
Share (Taka)
Price Earnings Ratio
15.57 21.05 8.68 7.35 4.20
(Times)
Net Assets Value
25.02 15.76 16.86 17.27 19.54
Per Share (Taka)
Operating Performance Ratio
Advance Deposit
90.00% 80.19% 78.03% 85.08% 83.82%
Ratio
Cost of Funds 7.29% 8.75% 8.81% 7.84% 6.92%
Cost of Fund with
10.35% 11.83% 11.52% 10.28% 8.80%
Administrative Costs
Yield on Loans and
13.30% 14.71% 13.36% 12.75% 11.17%
Advances
Return on Assets 4.01% 0.80% 0.96% 1.08% 1.43%
Return on Equity 29.96% 6.78% 9.14% 10.45% 12.74%
Debt/ Equity Ratio (
6.85 8.17 8.83 8.51 7.39
Times
24.73%
Cost/Income Ratio 34.03% 39.23% 35.54% 36.83%

Other Information
Number of Branches
154 165 171 179 191
and SME Centers
Number of OBU
1 1 1 1 1
Branches
Number of
3,758 3919 4126 4236 4266
Employees
Number of Foreign
415 492 492 493 493
Correspondents
Number of
5 6 6 7 7
Subsidiaries
Number of
associates -Gulf 1 1 1 1 1
overseas
Number of exchange company
Wholly or partly
3 4 4 5 5
owned
Under agreement 50 50 50 52 52

Table 2: Financial performance of NBL

(Source: Annual Report of NBL, 2016)
3.0 General banking:
The division of general banking plays the most significant role in all commercial banks. It
is mainly a liability side. General Banking division of NBL can be functioned in the
following way:
One who want to open an account, he has to fill up an account opening form. This form is
a legal contract between the bank and prospective customers. The rules and regulations
for opening of an account vary from customer to customer, if he wants to open different
types of accounts. First of all various types of customers such as individual, joint,
proprietorship, partnership, private limited company, public limited company,
associations, clubs, societies, trusts etc. can open their various types of accounts as their
requirements which are mentioned below:

3.1 Various Types of Deposit Account:

Saving Deposit:
National Bank Limited offers clients a hassle free and low charges investment account
through the branches all over Bangladesh.
Advantages of Savings Deposit:
 Interest rate of 4.00% on last month to month parity.
 Least adjust amount is Tk.1000.
 Maintenance or upkeep charge yearly Tk. 600.
 No shrouded expenses.
 Standing Instruction Arrangement are accessible for operating

Current Deposit Account:

National Bank Limited offers clients current deposit for regular business transaction with no
confinement.
Current Deposit Account (Personnel)
 Collect an Account opening structure from the Bank.
 Fill every one of the prerequisites of the structure.
 Nominee is must be indicated.
  Photograph is most imperative for any account two for holder and one for chosen
one (Except institutional A/C).
 To open this account the most imperative things is a photocopy of voter ID
card/legitimate international ID/Nationality Certificate issued by
Neighborhood govt. must need to include with the account opening structure
furthermore encase the structure 12 with the account opening structure.

Current Deposit account (sole Proprietorship):

 Signature Card.
 Photograph 3 or 4 for holder bore witness to by introducer and 2 for chosen one of
signatories verified by A/C holder.
 Copy of legitimate Trade License.
 TIN Certificate.
 18-A consent from Bangladesh Bank (for GSA & Agents just).
 Current Deposit Account (Partnership):
 Signature Card.
 Photography of signatories validated by introducer.
 Partnership Deed.
 Partners letter of power to open account and approval for operation.
 Copy of substantial Trade License.
 18-An authorization from Bangladesh Bank (for GSA & Agents just).

Current Deposit Account (Association/Trust/Society):

 Signature Card
 Photograph of signatories verified by introducer.
 Copy of Resolution of administering body to open the account and approval for
operation.
 Copy of comfort/standing rules/rules.
 Certificate of enlistment.
 List of approved signatories and individuals from the overseeing bodies alongside
Advantages of current Deposit Account:
  Least support charge half yearly Tk.400/ - .
 Least balance required is Tk.2000.
 No concealed expenses
 Standing Instruction Arrangement are accessible for working account.
 Simple access to our different accounts
Term Deposit:
Term Deposit can be divided into two different categories and they are
 Special Notice Deposit
 Fixed Deposit
Special Notice Deposit
National Bank Limited provides decent interest rate on client's special notice deposit and
offers account to withdraw cash whenever.
Advantages
 Least support charge half yearly Tk.500/ - .
 Tending Instruction Arrangement are accessible for working account.

Fixed Deposit:
National Bank Limited offers settled term funds that will scale up client's reserve funds sum
with the time.
Account Opening Procedure
 Collecting a structure and top off every one of the prerequisites of A/C holder.
 Nominee must be said and related data too.
 Two duplicates international ID size photo one for holder one for chosen one.
 Needed international ID or national ID card or chief certificates
Advantages
 Any sum of money can be saved
 Untimely encashment account is accessible.
 Overdraft account accessible against term receipt

Foreign Currency Deposit:

Foreign Currency deposit is categorized in two parts and they are as followed:
a) RFC DEPOSIT
b) NFC DEPOSIT
Resident Foreign Currency (RFC) Deposit
National Bank Limited offers opportunity to keep up foreign currency account through its
Authorized Dealer Branches. Bangladesh nationals dwelling abroad or Foreign nationals
living abroad or Bangladesh and outside firms working in Bangladesh or abroad or Foreign
missions and their ostracize representatives.
Advantages
 No starting deposit is obliged to open the account.
 Interest on the deposit amount will be offered 1.75% for US Dollar Account, 3.00 %
for EURO Account and 3.25% for GBP Account.
 They will get interest on every day item premise on the credit offset (least adjust of
US$ 1,000/ - or GBP 500/ - at any rate for 30 days) keeping up in the account.
Non-Resident Foreign Currency (NFC) Deposit
National Bank Limited offers chance to keep up foreign currency deposit through its
Authorized Dealer Branches. All non – inhabitant Bangladeshi nationals and persons of
Bangladesh cause including those having double nationality and usually living abroad may
keep up enthusiasm bearing NFCD Account.

Monthly Saving:
National Bank Limited offers month to month investment funds plan for its retail clients.
Advantages
 Regularly scheduled payments of deposit will be Tk.500/ - , Tk.1,000/ - , Tk.2,000/ -
,Tk.3,000, Tk.4000/ - , Tk.5,000/ - and Tk.10,0000
 Accounts may be opened for any portion and term, which is not changeable.
 A man is permitted to open more than one account for distinctive portion in a
branches/bank.

SL# Amount to be paid on completion of Term

 Monthly
Installments
03 (Three) 05 (Five) Years @ 08 (Eight)
Years @ 9.00% 9.25% Years @
9.50%
01 BDT 500/- 20,627/- 37,896/- 76,849/-
02 BDT 1000/- 41,277/- 75,791/- 1,41,691/-
03 BDT 2000/- 82,510/- 1,51,583/- 2,83,394/-
04 BDT 3000/- 1,23,765/- 2,27,374/- 4,25,091/-
05 BDT 4000/- 1,65,020/- 3,03,166/- 5,66,788/-
06 BDT 5000/- 2,06,274/- 3,78,957/- 7,08,485/-
07 BDT 10000/- 4,12,549/- 7,57,914/- 14,16,970/-

Monthly Earning Scheme:

Under this plan one will deposit at least tk.1, 00,000/ - for a long time and will appreciate
monthly interest rate of Tk.1, 000/ - for each Tk.1, 00,000/ - .
Advantages
 Deposit of Tk.1, 00,000/ - and its multiple upper limit of To 50, 00,000/ - might be
satisfactory under this plan.
 The deposit may be opened either separately or mutually.
Double Benefit Account
National Bank Limited now offers Double Benefit Account for its clients. The advantages
under this plan might turn out to be double following 07 (seven) years.
Advantages
 Deposit of Tk.1, 00,000/ - and others with no furthest breaking point might be
worthy under this plan.
 A man is permitted to open more than one DBA Account.
 The account may be opened either independently or mutually.
 All DBA account holder should be offered with free Life Insurance Policy under this
plan.
Millionaire Income Scheme:
Under this plan one will deposit an altered sum on month to month premise for 5, 7 or 10
years and on development he/she will be only a tycoon.
Advantages
 Deposit of different monthly sum for 5, 7 or 10 years. Account size will be in view of
residency. Upon development the contributor will get Tk. 10,00,000/
 A man is permitted to open more than one MIS Deposit.
 The deposit may be opened either separately or together

Installment Tenure On Maturity

12,450/- 5 10,00,000/-
7,870/- 7 10,00,000/-
4,550/- 10 10,00,000/-

3.2 Credit Products:

Credit products are categorized in the following:
 Overdraft
 Lease finance
 Home loan
 Small medium enterprise loan
 Consumer Credit Loan
 Trade Finance
Overdraft:
NBL offers overdraft account for corporate clients for everyday business operations.
Advantages
 Low charges in overdraft account maintenance.
 Account is accessible against account receipt or home loan property
 Low intrigue rate 13-16%
Lease Finance:
National Bank Limited offers renting account for customers with simple portion account.
FINANCING AREA
Capital machinery.
 Diverse types of gear.
 Gas, Diesel generator and Power plant.
 Therapeutic types of gear.
 Information Technology types of gear.
 Development types of gear.
 Buyer durables.
Advantages
 Focused month to month rental.
 Tax cut.
 Quick preparing.
Home Loan:
NBL offers home credit account for buying pads or development of house.
Advantages
 Financing sum broadens up to 70% or Tk. 75, 00,000 which is most elevated of
aggregate construction cost.
 Duty period available up to 9 months in level buy or 12 months in construction.
 Aggressive interest rate.
 No application or handling expense.
Eligibility:
 Any Bangladeshi native or NRB, who is equipped for reimbursement can apply for
this credit
 Simple handover in the wake of renting period
Smell Medium Enterprise Loan:
NBL offers monetary backing to little businesspeople/endeavor with new items named
"Celebration Small Business Loan" and "NBL Small Business Loan" has been presented in the
Bank.
Advantages
  Most extreme Tk.3.00 lac (Festival Scheme) and Maximum Tk.5.00 lac (Small
Business Scheme).
 3 Months (Festival Scheme) and 5 years (counting 1 month beauty period (Small
Business Scheme)).
 Insurance Free Advance.

Consumer Credit Loan:

NBL offers shopper credit account for retail clients.
FINANCING ITEMS
 Electronics shopper items.

 PC or Computer accessories.

Advantages
 Quick preparing.

 Focused interest rate.

 No application or preparing charge.

 Simple regularly scheduled payment.

Trade Finance:
NBL gives complete saving money administrations to all. sorts of business concerns, for
example, in the mechanical division for fare import reason as meeting expectations capital,
pressing credit, exchange finance, Issuance of Import L/Cs, Advising and affirming Export
L/Cs. - Bonds and Guarantees.
Advantages
 Low intrigue rate 13.00%-14.50%.

 Least handling time.

 Low administration charges.

3.3 Cards:
There are different kinds of cards in NBL:
 Gold International

 Silver International

 Gold Local

 Silver Local

 Power Cards
Two key cards are as followed:
Credit Card:
NBL Credit Card is acknowledged in numerous vendor outlet around the globe. An extensive
variety of traders incorporate lodgings, eateries, carriers, & travel operators, shopping
centers and departmental stores, doctor's facilities & demonstrative focuses, gem
specialists, gadgets & PC shops and some more.
Advantages
 Dual Currency Card Facility.

 Most reduced Rate of Interest.

 Most reduced Card Fees. Extraordinary Discount of Card Fee condition pertinent.
 Consumers can exchange 80% measure of your Local Card Limit to any NBL A/c or
have Pay Order Facility.
 No Excess Limit Charge.
Credit Card Fees:
Card Fees
Types of Gold Silver
Card
Old New Old New
International $ 50.00 $ 35.00 $ 25.00 $ 20.00
Local Tk. Tk. 1500/- Tk. 1200/- Tk. 700/-
2000/-
Dual - $ 35.00 - $ 20.00
Late Payment Fees:
Late Payment Fees
Types of Gold Silver
Card
Old New Old New
International $ 15.00 $ 10.00 $ 15.00 $ 10.00
Local Tk. 500/- Tk. 300/- Tk. 350/- Tk. 200/-
Dual - $ 10.00 - $ 10.00

Card Replacement Fees:

Late Payment Fees
Types of Gold Silver
Card
Old New Old New
International $ 15.00 $ 15.00 $ 15.00 $ 15.00
Local Tk. 500/- Tk. 500/- Tk. 500/- Tk. 500/-
Dual - $ 15.00 - $ 15.00

Power Card:
NBL Power Card is the first plastic for which consumers don’t need to keep up any account
with our any branch.
Advantages
 It is a Pre-paid Card
 Yearly/Renewal Fee Tk. 200/ - just
 May be issued and refilled from RFCD/FC Account
 Acknowledged at all VISA POS shippers
 Money withdrawal at all ATM stalls bearing VISA and Q-trade logo(Except HSBC in
for cold hard currency Bangladesh)
Drawing of Cash:
 from NBL ATMs - Free of charges
 From ATMs under Q-money system Tk.10.00 per exchange
 From other ATM - Tk. 100.00 for each exchange.
 Money Withdrawal Fee (aboard)- 2.00% on the money drawn sum or US$2.00,
whichever is higher.
 Just 1% stacking charge against both International and Local Power Card at the
season of Refilling.
 Yearly Tk.100 for enlistment of SMS administration.
 No Hidden Charges.

3.4 Cash Section:

The most vital and important section of the branch is Cash Department. It deals with all kinds
of cash transactions. This department starts the day with cash in vault. Each day some cash
that is opening cash balance are transferred to the cash officers from the cash vault. Opening
cash balance is adjusted by cash receipts and payments. This figure is called closing balance.
This balance is then added to the vault. This is the final cash balance figure for the bank at the
end of any particular day. There is an important clause and duty practiced by the branch is to
refund the principal amount that exceeds more than Tk. 1 crore at the principle branch of the
bank.
3.5 Functions of Cash Payment:
Cash Payment:
 Cash Payment is made only against check.
 This is the unique function of the banking system which is known as “payment on
demand”.
 It makes payment only against its printed valid Check.
Cash Receipt:
 It receives deposits from the depositors in form of cash.
 So it is the mobilization unit of the banking system.
 It collects money only its receipts forms.
3.6 Cash Payment or Cheque cancellation process:
Step1. Receiving Cheque by the employee in the cash counter
Step2.
 Verification of the followings by the cash officer in the computer section
 Date of the cheque it is presented within 6 month from issue date
 Issued from this branch
 Amounts in figure and sentence written does not differ
 Signature of the drawer does not differ
 Check is not torn or mutilated
Step 3: Gives pay cash seal and sends to the payment counter
Step 4: Payment officer makes payment.

3.7 Books maintained by Cash section:

Vault Register: It keeps account of cash National Bank Limited in vault in the bank.
Cash Receipt Register: Cash receipt in whole of the day is recorded here.
Cash payment Register: Cash payments are made in as day is entered here.
Rough Vault – Register: Cash calculation for final entry in vault register is done here as any
error and correction here is not acceptable.
Cash National Bank Limited book: National Bank Limited here is compared with vault
register. If no difference is found, indicates no error.

3.8 General Procedure of Account Opening:

Account opening section is an important factor for banks because customer is the main source
of bank. Selection of customer is another important factor. Bank‟s success and failure largely
depends on their customers. If customer is not good then
May create fraud and other problems by their account with bank and thus destroy goodwill of
banks. Therefore, bank must be conscious in selecting its customer. For this reason National
Bank Ltd. keep key information system.
Accounts Opening Process:
Recently, Bangladesh Bank has been declared, designed and enforced a unique format of
form for every banks. This format should hold the important document in a same manner and
process respectively for different kind of accounts. National Bank Ltd. is not different from
this practice. Accounts opening process can be as follows:
Step 1
 Receiving filled up application in bank‟s prescribed form mentioning what type of
account is desired to be opened.
 The form is filled up by the applicant himself/ herself
 Two copies of passport size photographs from individual are taken and in case of firms
photographs of all partners are taken
 Officer are taken information from customer by key information system
Step 2
 Applications must submit required documents
 Applications must sign specimen signature sheet and give mandate
 Introducer‟s signature and accounts number-verified by legal officer
Step 3
 Filling & signing up KYC or Know Your Customer Form
 Filling TP or Transaction Profile.
 Filling & signing up Owner Information Form
Step 4
 Authorized Officer accepts the application
Step 5
 Minimum balance is deposited-only cash is accepted
Step 6
 Account is opened and a cherub book and pay-in-slip book is given
Information Collected to Open Account:
Accounts opening information that is collected by the National Bank Ltd. varies for each type
of account.
 Individual
 Name of account holder
 Present and Permanent Address of A/C holder
 Sigh of account holder
 Date of birth and age
 Nationality
 Taxpayer Identification Number (TIN- if available)
  Passport or certificate provided by the employer
 Introducer
 Photograph of the account holder duly attested by the introducer.
 One photograph of the nominee duly attested by the account holder.
 Nominee declaration form
 Nominee Sign
 Money laundering leaflet
 Partnership Firm
 All the required information mentioned for Individual Accounts; along with,
 Copy of Partnership Dead
 Mandate from the partners is essential – indicating who will operate the account.
 Limited Company
 All the required information mentioned for Individual Accounts; along with,
 Certificate of Incorporation
 Copy of Memorandum and Article of Association
 Certificate of Commencement
 Copy of Resolution of the Board of Director.
 Public Company:
 Certificate of incorporation
 Copy of memorandum and Articles of Association
 Certificate of Commencement
 Copy of Resolution of the board of directors.
Dormant Account:
If any account is inoperative for more than one year is called dormant account. To operate
these accounts manager permission is necessary.
Unclaimed Account:
If any account is operative for 10 years is called unclaimed account. Unclaimed account
balance given to Bangladesh Bank.
Transfer of Account:
An account can be transferred from branch to branch and only from the same bank.
Following steps are considered for this purpose:
 Application in written to the Manager of the account maintaining branch.
 Manager sends a request to the manager of the desired branch of depositors
 Sends original Account opening application and specimen signature sheet with the
balance remained in the account at he sent Manager‟s request.
 New account is opened at desired branch.
3.9 General Procedure of Account Closing:
Account closing is also done by account opening section. The customer may close
his/her/their account(s) at any time giving notice to the bank. Similarly, the bank on genuine
ground may close customer(s) account giving reasonable notice for the action or without any
notice if the conduct of the account is not satisfactory to the bank or any reason(s)
whatsoever. In either case, bank will realize a closing charge from the customer‟s account.
The usual closing charge is Tk.300 + 15% VAT. But, the closing charge of account within
three months of opening is Tk.500 + 15% VAT.
To close an account:
 Account holder requires applying in a specific form with full signature.
 He/she/they must surrender the unused leaves/cheque book provided by the bank.
 Verification of signature and approval by operation head.

Close the account
On closure of the account, the bank will pay the credit balance (if any) of the account and any
profit due to the customer(s). The customer(s) shall surrender the unused cheque
books/leaves along with the requisition slip and other materials (if any) supplied by the bank
for operation of the account.
3.10 Cheque Clearing Section:
The main function of clearing section is to operate with safety and security of financial
transaction of financial instrument like DD, PO, check etc. on behalf of the customers
through Bangladesh Bank Clearing House, Outside Bank Clearing (OBC), Inter Branch
Clearing (IBC). This section examines in the following way:

The paying bank within the Dhaka city.
 Whether the paying bank outside the Dhaka city. Then these checks can be Whether
cleared by OBC, OBC stands for Outward bill for collection
  Whether the paying is their own branch. These check scan be cleared by IBC, IBC
stands for Inter Branch Bill for Collection.
Inward Clearing:
When the checks of its customer are received for collection from other banks, the following
should be checked very carefully;

The check must be crossed.

The check should not carry a date older then the receiving date for more than 6
months.
 The collecting bank must check whether endorsement is done properly or not.

The amount both in words and figures in deposit slip should be same and also it
should be in conformity with the amount mentioned in words and figures in the
checks.
Essential elements for Clearing
There are three essential elements are required for clearing the Instruments:
 Clearing Seal,
 Crossing Seal.
 Endorsement Seal.
3.11 Banker’s Cheque (BC):
BC is used only to make the payment of different kinds of bills like utilities bill of the bank.
Some special features of BC are as follows:
 It should be Crossed Cheque and Account Payee Only.

There is no commission for issuing a pay slip.
 Bank is the maker of the pay slip.
 A revenue stamp is required in case of payment.
 It has two parts; one part belongs to account payee and the other to the bank.
3.12 Online Banking Service:
Presently all branches of NBL are joined by ABBS network. Therefore client of one branch
can store or withdrawal his/her cash through some other branches of NBL at least expensive
cost or administration charges. Here it is specified that online offices are accessible for
Current Deposit A/Cs, Savings Deposit A/Cs & Special Notice A/Cs just.
3.13 A- Inter Branch Credit Advice (IBCA):
It is an advice written by originating branch to the responding branch to credit the general
account of responding branch for the transaction mentioned on it. IBCA is issued to
responding branch to pay. The responding branch makes payment.
3.14 B- Inter Branch Debit Advice (IBDA):
It is an advice written by origination branch to the responding branch to debit the general
account of responding branch for the transaction mentioned on it. IBDA issued to collect
money from other branch. The originating branch collects money.
3.15 Remittance section:
Sending money from one place to another through some charges is called remittance. To
pay or receive money of customers in the form of remittance from one place to another,
from one person to another inside and outside the national boundary is an earning source of
every bank.
Shimanto Square Branch National Bank Ltd. operates both the foreign and local remittance to
serve its customers. In addition, this service is an important part of country‟s payment
system. Through this service, people can transfer their funds from one place to another place
very quickly.
Foreign Remittance:
Foreign remittance is to send money of customers from one place to another, from one person
to another outside the national boundary. Though Shimanto Square Branch, National Bank
Ltd. Is a non-ad branch, it can able to serve the customers by receiving and paying their
incoming foreign remittance in the form of local currency. Foreign remittance is received by
the bank via some internationally authorized agents. There are two medium of agent for
foreign remittance at Shimanto Square Branch, National Bank Ltd.; they are:
Money Gram:
Money Gram is a money transfer medium/agent serves both domestic & international
services. Its identification number consists of 12 digits.
Local Remittance:
Sending money of customers in the form of remittance from one place to another, from one
person to another inside and outside the national boundary is another earning source of every
bank. As being a non-ad branch Shimanto Square Branch of National Bank Ltd. Only
operates the local remittance to serve the customers. In addition, this service is an important
part of country‟s payment system. Through this service, people can transfer their funds from
one place to another place very quickly. There are several techniques for collecting local
remittance. These are:
 Payment Order
 Demand Draft
3.16 Payment Order:
Pay order gives the payee the right to claim payment from the issuing bank. It is payment
from issuing branch only within the clearing house area of issuing branch. Payment is made
through clearing.
 Examine gentility of the pay order.
 Enter into Pay Order register and give contra entry
 Debit, if the fund is sufficient then it is OK for payment.

Charges of pay order are shown in bellow by a chart:

Amount of P.O. Commission VAT Total

1-100000 20 3 23

100001-500000 30 4 34

500001-1000000 50 8 58

1000001-Above 100 15 115

3.17 Demand Draft (D.D.):

DD is a one kind of bill of exchange. DD is the most frequently used mode of inland
remittance. DD is an unconditional order of the bank from one branch to another branch to
pay certain amount of money to a certain person on demand. It is applicable outside the
Dhaka City. The DD generally issued for party's safety. If there is a huge amount to bear
one place to another, then customer can do the DD and bear it to his destination instead of
cash.
Characteristics of demand draft (D.D.):
 It is drawn on one branch upon another branch of the same bank
 Its payment cans only that whose name is mentioned in the pay orders.
Commission:-
Up to 25000 taka commission 25 taka
Above 25000 taka every one thousand carry 1 taka
VAT: - VAT is 15% of commission.
3.18 Telegraphic Transfer (T.T.):
Telegraphic Transfer is the most rapid and convenient but expensive method. There are
different modes of telegraphic transfer such as Fax, Mobile, Telephone Telex, and Telegram.
If an applicant wants to transfer money quickly to the pay in another city or district he /she
may request the banker to send it by TT.
Procedure for sending TT:
When client want to transfer money from NBL, corporate branch to NBL, Shimanto Square
Branch then following:
At first collect TT from remittance division
Deposit money in cash department which he mentions in TT form.
Client should have account in NBL at corporate branch and sending place. Client should paid
commission, VAT and telex charge
Then client collect cost memo form remittance division, this cost memo work as an evidence
in favor of client.
The authorized officer put test code and registers it in the TT payment register book then
authorized officer send massage to the Shimanto Square Branch by telephone or telex. This
massage contains client account number, test number, amount
Commission of TT:
Up to 25000 commissions charge is 25 taka
Above 25000 for every one thousand pay one taka as commission.
VAT: - 15% of commissions
Telex Charge: - it is always 40 Taka.
4.0 Savings Account:
Results of Trend analysis:

savings
60
50
No.of accounts

40
30
20
savings
10
0

Time period

Figure-02: Trend of saving account (SB)

Here, we can see that from January 2016 to October 2016 the trend of SB holder‟s number
fluctuating over years.
For detecting the trend in savings account, the trend analysis is performed. Results obtained
from trend analysis are presented in table:
Table-01: Trend analysis result of Savings account (SB)

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 19.636 4.521 4.343 .000

Time .269 .344 .172 .781 .444

a. Dependent Variable: savings

Based on the above table, the trend equation for savings account can be written as follows:
Savings Account=19.636 +0.269*time
Since the value of time is positive the trend of saving account will increasing. The trend will
be increased in 0.269 times in every 4 months.
Table-02: Forecasted value of savings account.
Month Forecasted value
February, 2017 27
June, 2017 28
October,2017 29

We can see that from the month February, 2017 to October, 2017the trend of SB account
holders number will increase.

4.1 Current Deposit:

current deposit
14
12
10
No.of accounts

8
6 current
4 deposit
2
0

Time period

Figure-03: Trend of Current deposit (CD)

Here, we can see that from January 2016 to October 2016 the trend of CD holder‟s number
fluctuating over years.

For detecting the trend in Current deposit, the trend analysis is performed. Results obtained
from trend analysis are presented in table:
Table-03: Trend analysis result of Current deposits (CD)

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 7.351 1.401 5.246 .000

Time -.113 .107 -.231 -1.064 .300

a. Dependent Variable: current deposits

Based on the above table, the trend equation for Current deposit can be written as follows:

Current deposit = 7.351-0.113*time

Since the value of time is negative the trend of Current account will decreasing. The trend
will be decreased in -0.113 times in every 4 months.
Table-04: Forecasted value of current deposits.
Month Forecasted value
February, 2017 4
June, 2017 4
October,2017 3

We can see that from the month February, 2017 to October, 2017 the trend of Current deposit
holders number will decrease.
4.2 Millionaire Deposit Scheme:

millionaire deposit scheme

6
5
4
No.of accounts

3
2 millionaire
1 deposit scheme

Time period

Figure-05: Trend of Millionaire deposit scheme (MDS)

Here, we can see that from January 2016 to October 2016 the trend of MDS holder‟s number
fluctuating over years.

For detecting the trend in Millionaire deposit scheme, the trend analysis is performed. Results
obtained from trend analysis are presented in table:
Table-07: Trend analysis result of Millionaire deposits scheme (MDS)

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.455 .697 3.523 .002

Time -.047 .053 -.196 -.894 .382

a. Dependent Variable: millionaire deposit scheme

Based on the above table, the trend equation for MDS can be written as follows:

Millionaire Deposit Scheme = 2.455-0.047*time

Since the value of time is negative the trend of MDS will decreasing. The trend will be
decreased in -0.047 times in every 4 months.
Table-08: Forecasted value of MDS.
Month Forecasted value
February, 2017 1
June, 2017 1
October,2017 1

We can see that from the month February, 2017 to October, 2017 the trend of MDSholder‟s
number will constant.

4.3 Fixed Deposit:

fixed deposit

30
25
20
No.of accounts

15
10
fixed deposit
5
0

Time period

Figure-06: Trend of Fixed deposit (FDR)

Here, we can see that from January 2016 to October 2016 the trend of FDR holder‟s number
fluctuating over years.

For detecting the trend in fixed deposit, the trend analysis is performed. Results obtained
from trend analysis are presented in table:
Table-09: Trend analysis result of Fixed deposit (FDR)

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 15.403 1.862 8.270 .000

Time .036 .142 .057 .255 .801

a. Dependent Variable: fixed deposit

Based on the above table, the trend equation for FDR can be written as follows:

Fixed deposit = 15.403+0.036*time

Since the value of time is positive the trend of fixed deposit will increasing. The trend will be
increased in 0.036 times in every 4 months.
Table-10: Forecasted value of FDR.
Month Forecasted value
February, 2017 16
June, 2017 16
October,2017 17

We can see that from the month February, 2017 to October, 2017 the trend of FDR holder‟s
number will increase.

5.0 Actual Task Part:

In the period of my two months internship program, I got a position and some duties in
National Bank Limited, Shimanto Square Branch. My observation and responsibilities were
in General Banking Department like opening & different types of DPS or FDR opening
(Deposit Schemes). From 01 November 2016 to 28 December 2016, I worked with Afsana
Sultana junior Officer of National Bank Limited, Shimanto Square Branch who manages the
Second Manager. On that time I mainly worked in Customer Service Department & observed
the rules and regulations of Deposit Schemes and the procedure which they followed in the
Deposit Section.
5.1 Job responsibilities:
There were several responsibilities carried out by me in general banking division of National
Bank Limited (Shimanto Square Branch). Every day I used to start my job at 10:00am and it
ended at 03:00pm. Within this time different types of job were done by me and those are
given below.
Accounts Opening:
Account opening is the most important issue in general banking. It is the first phase of
customers who are going to get services from the bank. Before opening of any account it is
very important to know the target customers of the bank. The targeted customers may be
individual, partner, joint stock companies, trustee/clubs/associates and different types of
institutions. It is also important to know why the customer wants to open account at this
branch. To reveal customer‟s purpose of opening account is pretty tricky. If account opening
officer is experienced and intelligent s/he can easily expose the purpose for opening account
from customer himself.
National Bank Limited offers different types of account for their target groups. These are as
follows:
 Current Account
 Savings Account
 Fixed Term Deposit account (FDR)
 Short Term Deposit (STD/DPS)
 Term deposits

Opening an account is the first step to be a customer of National Bank Limited and enjoying
different services of it. For depositing and withdrawing money from The National Bank and
having other services, an account is mandatory for every individual and institutional
customer. So my responsibility was to give premium quality services and attempt to sustain
our customer for a long time with Standard.
Closing Accounts:
Customer accounts are closed for many reasons. So I closed accounts with maximum
attention to the customer so that next time when they will think about opening a bank
account, National Bank Limited will come to their mind as a preferred choice.
Receive Cheque Requisition:
A cheque requisition is received from the customer for giving a new cheque book containing
a specific number of pages mentioned by customer. I received the cheque requisitions
throughout the day and sent the list to the head office at the end of the day.
Pay Order Issue:
Pay order has been issued to serve the customer who wants send money not in cash rather in
cheque. It reduces the cash carrying risk. I filled up the pay order slip to help out the
customers.
Bills Remittance Department:
It is most and interesting department. This section deals with the transfer of money from one
branch to another branch. Nearly six drafts issued daily from this department. Here I know
the amount transferred and what is the procedure. This department also deals with T.T.
transfer of money. I worker nearly three weeks department.
Cash collection:
In cash counter I used to collect cash from customers that they used to deposits in monthly
saving accounts.
Checking Papers Submitted by short term Loans:
I used to check papers submitted by customer like Trade license, Receipt book, and mortgage
paper of land.
Assisting customers to open bank Account:
I used to help customers to fill up the account opening form. Also provided information
regarding the types of papers they need to open a particular account.

6.0 Findings:

 Online Banking is not that much good

  Has lacking in ATM and credit card sectors
 Salary is less than other banks
 Poor marketing strategy
 Less branches in rural areas
 Interest rate of FDR is less than other banks

6.1 Recommendations:

 interest rate should be reduced for CC account (Cash Credit)

 Should open more branches in rural areas
 Should focus more on credit cards and ATM booths
 Should use the term “Islamic Banking”
 Should pay more to the employees
 National Bank limited should increase all deposit interest rate and decrease all loan
interest rate.
 Manager must ensure that customer complaints are addressed with top most
priority
 Manager must ensure efficiency in their operations so that customers do not have to
suffers or wait for long time for their intended work.
6.2 Conclusion:
Finally, it can be concluded that, internship program has been arranged for gaining practical
knowledge with theoretical knowledge. Highest effort has been given to provide the actual
scenario of the general banking system of the National Bank limited. During the internship,
it is found that The Shimanto Square Branch of National Bank Limited provides all the
conventional banking services as well as some specialized financing activities. The Branch
also provides loans in different categories.
National bank Limited is one of the largest and oldest banks in the private banking sector. It
has a large portfolio with huge assets to meet up its liabilities and the management of this
bank is equipped with the expert bankers and managers in all level of management. A banker
cannot sleep well with bad debts in his portfolio. The failure of commercial banks occurs
mainly due to bad loans, which occurs due to inefficient management of the loans and
advances. Beside this, a good customer service and general banking activities attract the
customers. So, National Bank is focusing more on ensuring a good quality banking service to
attract more and more customers.
Bibliography
Books:
 A. Bernstein Leopold “Financial Statement Analysis”, 5th Edition

 C. Hudgins Sylvia, Peter Ross S.“Bank Management & Financial services-7th Edition

 Gitman J, Lawrence (2003), “Principle of Managerial Finance”, 10th edition, Pearson

Education Pte. Ltd, Singapore.

Websites:

 www.assignmentpoint.com

 www.bangladesh-bank.org.bd

 www.eikepedia.com

 www.nblbd.com

 www.reportbd.com

Articles:

 Annual Report of BBL, 2012-2016

 Annual Report of DBBL, 2012-2016

 Annual Report of NBL, 2012-2016

 Annual Report of NCCBL, 2012-2016

 Credit Division Manual of NBL

 Published Document & Banking manual

Acronyms
NBL National Bank Ltd.
SB Saving Account
FED Foreign Exchange Department
AD Authorized Dealer
CCI Chief Controller of Import
CCE Chief Controller of Export
IMP Import Policy
EXP Export Policy
MT Mail Transfer
FC Foreign Currency
L/C Letter of Credit
PAD Payment against Documents
LIM Loan against Imported Merchandising
TC Export Registration Certificate
VAT Value Added Tax
CA Current Account
STD Short term Deposit
FDR Fixed Deposit Receipt
MSS Monthly Saving Scheme
DD Demand Draft
TT Telegraphic/Telephonic Transfer
PO Pay Order
CM Credit Memorandum
DBDS Double Benefit Deposit Scheme