Report on General Banking Activities of Prime Bank Limited
Subject: Banking | Topics:

The main objective of this report is to analysis General Banking Activities of Prime Bank Limited. This report included the bank’s mission, vision, objectives and functions of several departments of the bank also discuss on the management system of Prime Bank Limited as a private commercial bank, its formation, and its functional and financial aspects. Finally make SWOT analysis and find our problems and draw recommendation to solve.

OBJECTIVE OF THE REPORT

Broad Objective:

The major objective of the report is to make an in depth analysis of activities of General Banking of Prime Bank Limited.

General Objective:

The general objectives of the report are

  • To know about the management system of Prime Bank Limited as a private commercial bank, its formation, and its functional and financial aspects.
  • To have a clear knowledge about all the division and departments of Prime Bank Limited Mirpur -1Branch.
  • To achieve the practical knowledge that will be helpful for future life.
  • To justify the extent of the use of marketing in General Banking
  • To apply theoretical knowledge in the practical field.
  • To have exposure to the functions of general banking section.
  • To observe the working environment in commercial banks.
  • To study existing banker customer relationship.
  • To be acquainted with the procedures of several schemes of deposits.
  • To improve corresponding, report writing ability.

 

METHODOLOGY

Research Design

Exploratory research has been conducted for gathering better information that will give a better understanding on General Banking. Both primary and secondary sources of data collection procedure have been used in the report. Primary data has been collected mainly through the writer’s observation of the approval process and monitoring techniques, in depth interviews of executives, officers and employees of Prime Bank Limited.

Sources of Data Collection

To make the Report more meaningful and presentable, two sources of data and information have been used widely. Both primary and secondary data sources were used to generate the report.

The “Primary sources” are as follows-

  • Face-to-face conversation with the respective officers and staffs of Prime Bank and other banks.
  • Informal conversation with the clients.
  • Practical work exposures from the different desks of the departments of the Branch.
  • Study of the relevant files as instructed by the officers concerned.

The “Secondary Sources” of data and information are-

  • Annual reports of PBL
  • The daily newspaper
  • Various books articles

 

INCORPORATION OF THE ORGANIZATION

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with a different outlook. For them it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Limited was created and commencement of business started on 17th April 1995. Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank, the Central Bank of the country on April 17, 1995 through the opening of its Motijheel Branch at Adamjee Court Annex Building, Motijheel commercial area, Dhaka-1000. PBL was actually registered under the Companies Act of 1913 with its registered office at 5, Rajuk Avenue, Motijheel commercial area, Dhaka-1000 which was later shifted to Adamjee Court Annex Building, 119-120, Motijheel commercial area, Dhaka-1000.

As a fully licensed commercial bank, Prime Bank Limited has being managed by highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so does the bank adjusts itself to the changing conditions. In its 10th year of operation in 2005, Prime Bank has made substantial headway in terms of business growth, profitability and establishing its image as one of the leading private commercial banks. Its march towards reaching greater heights in operation continues with full vigor and enthusiasm. Prime Bank has made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL Rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operations.

Prime Bank Limited offers all kinds of commercial, corporate and personal banking services covering all segments of society within the framework of banking rules and regulations laid down by the Central Bank.  Diversification of products and services include corporate banking, retail banking and consumer banking right from industry to agriculture, real state, software and other sectors. Prime Bank Limited is a fast growing private bank and it is already at the top slot in terms of quality service to the customers and value addition for the shareholders. In the last few years Prime Bank made satisfactory progress in all areas of business operation. The bank managed to further expand and consolidate its customer base in both of its core businesses and retail banking.

Prime Bank Limited is one of the strong capital based banks in the country with capital adequacy ratio of 10.88% as on December 31, 2008, which is well above the stipulated requirement of 8%. The authorized capital of the bank is Tk. 10000.00 million and paid up capital stood at Tk. 2844.00 million as on 31st December 2008. On this date the reserve fund of the bank stood at Tk. 986.51 million while the equity fund was Tk.2239.8 million. The total asset of the company was Tk. 110,437 million in 2008.

Prime Bank has been very selective in locating branches so that customers are better served. The bank’s currently has a network of 70 branches all over Bangladesh and a booth located at Dhaka Club, Dhaka. The bank also plans to add a few branches to its network that will give the bank strategic advantage in terms of operation and business potential. Prime Bank’s aim is to be the leading bank in the country’s principal markets. The bank by concentrating on the activities in its area of specialization has achieved good market reputation with efficient customer service. Prime Bank consolidated its position and retained its product line and financial services aimed at various target groups. In a challenging market conditions, this bank continued to provide more innovative products and better services to retain and expand its market share. The bank is committed towards providing continuous training to its staff to keep them up to date with modern practices in their respective fields of work. This bank also tries to fulfill its share of community responsibilities. By such measures the bank intends to grow and increase shareholder’s earning per share.

 

COMMENCEMENT OF OPERATION

Prime Bank Ltd. started its operation on 17th April 1995 with an authorized capital of Tk. 1000 million and paid up capital of Tk. 100 million by a group of highly successful entrepreneurs who are established in various fields of economic and business activities. The commercial and investment services of PBL range from small enterprises to big business loans to all type of customers. Besides this, the bank actively participates in socio-economic development of priority sectors like agriculture, industry, housing, self-employment, etc

VISION

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management, and profitability having strong liquidity.

MISSION

To build Prime Bank limited into an efficient. Market driven, customer focused institution with good corporate governance structure. Continuous improvement in Bank’s business policies, procedures and through integration of technology at all levels.

OBJECTIVE

Prime Bank aims to continuously update and develop its product line and range of services to cater to the needs of retail and corporate customers. To achieve this goal, efforts have been directed in three main areas:

  • Design and introduction of new products and services
  • Shaping and developing the system to face new challenges and emerging need of  Market
  • Full implementation and utilization of the Bank’s excellence program which aims to provide service to customers.

While strengthening risk management and improving asset quality is the main focus of the bank, it is also aware of its responsibility to the society. With this noble intention, Prime Bank Foundation was established in 2001, which took part in diverse charitable and voluntary programs to alleviate poverty and community welfare.

 

FINANCIAL PERFORMANCE

Table : Financial performance (Taka in million)

Particulars20082007
Paid-up Capital28442275
Total Capital785963863
Profit after tax1,2321,401
Total Assets11043779588
Total Deposit8802170512
Total Loans and Advances7515657683
Return on equity20.58%30.68%
Liquidity ratios18.80%25.80%
Capital adequacy ratio10.88%11.50%
Cost of fund8.55%8.41%
Interest earning Assets29,137.2821,936.70
Return on Assets2.16%1.72%
Earnings per Share43.3261.57
Market price per share540924
Price Earning Ratio(times)12.4615.01

Source: Prime Bank Annual Report-2008

 

FUNCTIONAL STRUCTURE

General Service Division (GSD)

The functions of GSD are classified as Establishment and General Banking (GB).

(a) Establishment

The main function of GSD is to procure and supply the tangible goods to branches of PBL. Those are:

  • Tangible functions of opening a branch, for example, interior decoration, making lease agreement
  • Print all security papers and bank stationeries, forms, registers and distribute them to the branches
  • Purchase and distribution of bank’s furniture and fixtures
  • Find out the demand of equipment from the branches and divisions and arrange the purchase and delivery of them to the branches concerned
  • Install and maintain different facilities in different branches.

(b) General Banking

General department performs the majority functions of a bank. It is the core department of any bank. The activities of GB of PBL are mainly divided into the following categories:

  • Account opening section
  • Local remittance section
  • Online branch banking section
  • Deposit scheme section
  • Clearing section
  • Collection section
  • Cash section
  • Accounts section

Head Office Accounts

It deals with the Head Office transactions with banks and its different branches and these are recorded under the following headings:

  • Income and expenditure positioning: It maintains all the income and expenditure information
  • Cash section: It handles cash expenditure for office operations and payments.
  • Bills section: It deals with inland bill transactions.
  • Salary and wages section: Salary and wages of head office executives are given from this account.
  • Provident fund: Employee provident fund are maintained here.

Consolidation of Branch Accounts

All branches of PBL have to periodically send their income and expenditure, profit and loss accounts to head office. This division consolidates all these information and makes statements to submit to Bangladesh Bank.

Credit Division

The main functions of this division are:

  • To Manage PBL’s credit portfolio
  • Receive credit proposal from branches
  • Appraise and approve the proposals
  • Sanction letters and send them to branches
  • Monitor and follow up the loans and advances provided by the bank
  • Set up prices for credits and ensure their effectiveness
  • Prepare various statements to submit to Bangladesh Bank

International Division

This division is responsible for monitoring and supervising the foreign exchange dealings of the bank. It performs the following functions:

  • Making guidelines and frameworks for foreign dealings complying the rules of Bangladesh Bank
  • Circulating instructions of Bangladesh Bank
  • Maintaining correspondence with foreign banks and exchange houses with which it has exchange arrangement
  • Maintaining Nostrum accounts with banks in abroad
  • Fixing and sending foreign exchange rates to Authorized Dealer (AD) branches and Bangladesh Bank.

Treasury

Treasury is considered to be an important division for income generation purpose within the head office. The treasury of PBL continues to efficiently manage bank’s cash flow. It optimizes the investment of the bank’s excess liquidity. Treasury is also expected to provide quality services and products to meet the demand of the customer needs and play a major role in raising bank’s income.

Computer Division

This division operates and keeps the record of all transactions, assets, liabilities of PBL by using integrated software. Though the technology of PBL is not advanced, the computer division tries to provide the following functions:

  • Supply and installation of computer as per requirement
  • Design software to support accounts operation
  • Train the officers and employees about the operation of different software
  • Updating the software if there is any lagging in its operation

Marketing Division

There are two types of marketing division. These are:

Asset Marketing: It refers to various kinds of loan and advances. This division maintains communication with corporate clients gives incentive to take loan from PBL and approaches them to borrow from PBL in profitable projects.

Liability Marketing: This refers to marketing for collecting funds through buying of depository products from large depositors. The division communicates to the persons or organization having excess fund of deposit, informs them about the attractive features of the depository products and convince them to invest in PBL in various deposit scheme.

HR Division

The Human Resource Division performs the activities related to administration and personnel. The main functions of HRD are:

  • Selection and recruitment of new personnel
  • Appropriate placement of human resources
  • Maintain the detail about transfer, promotion and leave of personnel
  • Training and development of human resource
  • Keeping employee records and personal file
  • Taking disciplinary action if necessary

Credit Card Division

In 1999, PBL obtained the membership of Master Card and a separate division has been assigned to look after the credit card operation. There are four types of credit card, Local Silver Credit Card, International Silver Credit Card, Local Gold Credit Card, International Gold Credit Card.

Research and Development

This division is maintained to do the research and development work to innovate new products and services as well as to improve existing products and services.

 

SWOT ANALYSIS

The acronym for SWOT stands for

  • STRENGTH
  • WEAKNESS
  • OPPURTUNITY
  • THREAT

The SWOT analysis comprises of the organization’s internal strength and weaknesses and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strength

  • Banking Experience of 12 years provides PBL the strength of being one of the market leaders in the sector. This strength of PBL is totally unmatched by any other commercial bank in Bangladesh, as the long term success of a bank heavily depends on its reputation while dealing with every sensitive commodity like money.
  • PBL received many awards during 2006. PBL is the recipient of 1st prize under ICAB National Awards 2005.
  • Credit Rating Information and Services Limited (CRISL) rated the Bank as A+ Considering its good profitability, best asset quality and diversified product lines.
  • As the 6th largest listed company at Dhaka Stock Exchange PBL has strong confidence among the investors, both individual and institution.
  • PBL focus strongly on remittance business and with that aim they opened rural branches where remittance business concentrates. PBL opened Exchange House at Singapore, Prime also entered into agreement with various exchange houses at USA, UK, Middle East and South Asian countries for inward foreign remittances of the wage earners.
  • To be the most efficient Bank PBL has chosen T24 of Temenos Holdings, NV Netherlands Antilles as the core banking Software (CBS) for the first time in Bangladesh.
  • In Bangladesh PBL has wide range of customer base and is operating efficiently in this country.
  • PBL has a bulk of qualified, experienced and dedicated human resources.
  • PBL has the reputation of being the provider of good quality services to its potential customers

Weakness

  • PBL has fewer branches than their competitors. Such as PBL have only 50 branches whereas Uttara Bank Limited has 198 branches and 12 regional offices.
  • PBL do not provide any ATM facility to the customers. This is one of the major weaknesses of PBL.

Opportunity

  • The population of Bangladesh is continuously increasing at a rate of 7.3% per annum. The country’s growing population is gradually and increasingly learning to adaptation of consumer finance. As the bulk of our population is middle class, different types of products have very large and easily pregnable market.
  • The activity in the secondary financial market has direct impact on the primary financial market. Investment is a national socio economic activity. And activity in the national economy controls the bank.
  • PBL is now focusing on lending to SME and Retail sector. The bank is not only providing credit but also decided to popularize the SME sector by participating in various trade shows organized in the country.
  • Bangladesh have a huge consumer base for maintaining several accounts. So PBL has the opportunity to keep these customers by reducing its current fees and charges.

Threat

  • In today’s economy, substantial amount is remaining idle and currently the investment in the secondary market by foreign is relatively low. These economic situations of the country indicate political threats.
  • Increased competition by other banks is also another threat to PBL. . Furthermore, the new comers in private sector like Dutch Bangla Bank, EXIM Bank, BRAC Bank, Southeast Bank, Mercantile Bank, Social Investment Bank, Islami Bank are also coming up with very competitive force.

 

GENERAL BANKING ACTIVITIES OF PRIME BANK LIMITED:

At first I have been placed in the General Banking Department. General Banking department performs the majority functions of a bank. It is the core department.

In fact, bank operates with the people’s money. And this process starts with the General Banking department. The activities of the General Banking Department of PBL are mainly divided into the following categories:

  • Account Opening Section,
  • Local Remittance Section,
  • Online Branch Banking Section,
  • One Stop Utility Services Section,
  • Deposit Schemes Section,
  • Clearing Section,
  • Collection Section,
  • Cash Section,
  • Accounts Section

Account Opening Section:

To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers.

Types of Account:

Mirpur Branch has the following types of accounts:

  • Current Account
  • Savings Account
  • Fixed Deposit Account

Procedure to open an Account:

  • For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information etc.

The prospective customer should be properly introduced by the followings:

  1. An existing customer of the bank.
  2. Officials of the bank not below the rank of Assistant Officer.
  3. A respectable person of the locality who is well known to the Manager or authorized officer.
  4. Two copies of passport size photograph duly attested by the introducer.
  5. Signature of the prospective account holder in the account opening form and on the specimen signature card duly attested by the introducer.
  6. Then the concerned authority will allocate a number for the new account.
  7. The customer than deposit the “initial deposit” by filling up a deposit slips. Initial deposit to open a current account in PBL is Tk. 10000.00 and saving account is Tk. 5000.00.

After depositing the initial deposit, the account is considered to be opened. PBL maintains all of its accounts in computer. After depositing the initial deposit, PBL records it in the computer by giving new account number. Then it issues cheque book requisition slip by the customer. Then it distributes all relevant papers to respective department.

Activities & papers necessary for opening an account:

Joint Account:

If the account is a joint account, then the joint account holder should submit a declaration and operational instructions of the account along with their signature. The declaration is

“Any balance to the credit of the account is and shall be owned by us as joint depositors. Any liability whatsoever incurred in respect of this account shall be joint and several.”

Partnership firm:

The following documents have to be submitted for preparing an account of a partnership firm:

Partnership deed.

(a) If the partnership firm is a registered one, then one copy of registration forms.

(b) If not, then a copy of certificate from the notary public.

 

Limited Company:

For the opening of an account of a limited company, following documents have to be submitted:

  • A copy of resolution of the company that the company decided to open an account in the Prime Bank.
  • Certified true copy of the Memorandum & Articles of Association of the Company.
  • Certificate of Incorporation of the company for inspection and return along with a duly certified Photocopy for Bank’s records.
  • Certificate from the Registrar of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. Co. For inspection and return) along with a duly certified Photocopy for Bank’s records.
  • Latest copy of balance sheet.
  • Extract of Resolution of the Board/General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman/Managing Director of the company.
  • List of Directors with address (a latest certified copy of Form-XII).

Club/Society:

Following documents have to be obtained in case of the account of the club or society:

  • Up to date list of office bearers.
  • Certified copy of Resolution for opening and operation of account.
  • Certified copy of Bye-Law and Regulations/Constitution.
  • Copy of Government Approval (if registered).

Cooperative Society:

Following documents have to be obtained in case of the account of Cooperative Society:

  • Copy of Bye-Law duly certified by the Co-operative Officer.
  • Up to date list of office bearers.
  • Resolution of the Executive Committee as regard of the account.
  • Certified copy of Certificate of Registration issued by the registrar, Co-operative societies.

Non-Govt. College / School / Madrasha / Muktab:

Following documents have to be obtained in case of the account of non-govt. College / school / madrasha / muktab:

  • Up to date list of Governing Body/Managing Committee.
  • Copy of Resolution of the Governing Body/Managing Committee authorizing opening and operation of the account duly certified by Gazetted Officer.

Trustee Board:

Following documents have to be obtained in case of the account of trustee board:

  • Prior approval of the Head Office of PBL.
  • Certified copy of Deed of Trust, up to date list of members of the Trustee Board and certified copy of the Resolution of Trustee Board to open and operate the account.

Minor’s Account:

Following documents have to be obtained in case of the account of minor:

  • Putting the word “MINOR” after the title of the account.
  • Recording of the special instruction of operation of the account.
  • The AOF is to be filled in and signed by either the parents or the legal guardian appointed by the court of law and not by the minor.

 

Local Remittance Section:

Local remittance is one of the main components of general banking.  The activities of local remittance are —

  • Telegraphic Transfer,
  • Demand Draft issue,
  • Saving Certificate Issue (Sanchaypatra issue),
  • Pay order.

Telegraphic Transfer:

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 and funds are paid to the beneficiary through his account maintained with the drawee branch or through a pay order if no account is maintained with the drawee branch.

Procedure of issuing TT:

Following procedures are followed while issuing of TT:

  • The applicant fills up the relevant parts of the prescribed application form in triplicate, duly signed the same and gives it to the GB.
  • GB will fill up the commission part for bank’s use and request the applicant to deposit necessary cash or cheque at the cash booth.
  • The first copy of the application form will be treated as Debit Ticket while the second copy will be treated as Credit Ticket. The third copy will be handed over to the applicant as customer’s copy.
  • GB will prepare telex in appropriate form, sign it and send it to the telex operator for transmission of the message.
  • GB will prepare necessary advice. Debit advice is sent to the client if clients account is debited for the amount of T.T.
  • T. Confirmation Advice is sent to the drawee branch.
  • Credit Ticket (second copy of the application form) is used to credit the PBL General Account.

 

Demand Draft (DD) Issue:

Sometimes customers use demand draft for the transfer of money from one place to another. For getting a demand draft, customer has to fill up an application form. The form contains date, name and address of the applicant, signature of the applicant, cheque number (if cheque is given for issuing the DD), draft number, name of the payee, name of the branch on which the DD will be drawn and the amount of the DD. The form will be duly signed by the applicant and by the authorized officer.  PBL charges .15% commission on the face value of DD as service charge.

Process of issuing Local Draft:

Followed procedures are followed while issuing local draft—

  • Get the application form properly filled up and signed by the applicant.
  • Complete the lower portion of the form for the bank’s use.
  • Calculate the total amount including the bank’s commission.
  • If the cheque is presented for of the local draft, the officer should get the cheque duly passed for payment by the authorized person and record the particulars of local draft on the back of the cheque.
  • If the client wants to debit his account for the payment of the draft amount, the officer should get the account holder’s signature verified properly, from signature card on record of the branch and debit clients account for the total amount including commission.
  • The first copy of the application form will be treated as Debit Ticket while the second copy will be treated as Credit Ticket and kept by the GB. The third copy is handed over to the applicant as customer’s copy.

The GB Department maintains a prescribed L.D. Issue Register. All the required particulars of LDs issued by PBL should be entered in that register duly authenticated.

 

Issue of Duplicate Draft:

Duplicate Draft is not normally issued unless getting of satisfactory evidence is produced regarding loss of the draft. If the L.D. is reported to be lost or stolen, the issuing branch on receipt of a written request from the purchaser may issue a duplicate draft.

Before issuing duplicate L.D. the branch should observe the followings—

  • Verify the purchaser’s signature on the request letter from the signature appearing on the original application form.
  • Immediately issue a stop payment instruction to the drawee branch under advice of head office and obtain confirmation of non-payment the L.D. in acquisition.
  • After the drawee branch has acknowledged the stop payment order and confirmed that the local draft in acquisition remains unpaid at their end, the issuing branch should obtain an Indemnity Bond on stamp paper as per prescribed format from the purchaser duly signed by him. The branch will thereafter write to head office for their approval to issue a duplicate draft.
  • The head office on receipt of the request from the issuing branch will immediately issue a caution circular to all the branches regarding the lost of the local draft asking them to record stop payment.
  • The head office will thereafter issue clearance to the issuing branch for issuing for issuing a duplicate draft in lieu of original reported lost.
  • On receipt of the clearance from head office, the issuing branch will issue a completely fresh draft marking clearly the words duplicate issued in lieu of original draft no…… dated ……in bold letters on the top of the front page of the draft. The printed serial number on the draft should not however be struck off. Intimation should be given to the drawee branch furnishing full particulars of the duplicate draft.
  • The particulars of the duplicate draft must resemble those of the original draft in all respects, i.e., all the particulars to the duplicate draft must be identical with those in the original draft. No further IBCA is to be issued for the duplicate draft.
  • Prescribed duplicate issuance charge is to be recovered for issuing the duplicate draft and credited to “Income Account”.

 

Cancellation of Local Draft:

The followings are followed while canceling a L.D.—

  • The purchaser should submit a written request for cancellation of the L.D. attaching therewith the original L.D.
  • The signature of the purchaser will have to be verified from the original application form.
  • Manager’s prior permission is to be obtained before refunding the amount of draft.
  • Cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be refunded. Commission charge, posted charge etc. recovered for issuing the L.D. should not be refunded.
  • The original entries are to be reversed giving proper narration. An IBDA for the cancelled L.D. should be issued on the drawee branch.
  • Cancellation of L.D. should also be recorded in the L.D. Issue Register.

Stop payment of Local Draft:

The payee or purchaser of the draft can not give stop payment instruction to the drawee branch. If the paying branch receives a request from the purchaser of the draft for stopping payment of the draft, it will ask the purchaser to approach the issuing branch about the purpose.  The paying branch should however exercise necessary precaution in this regard. Only the issuing branch can issue instruction for stop payment of the draft under special circumstances.

Saving Certificates:

PBL Mirpur branch sales shanchaya patra as its ancillary services rendered to customers on behalf of government through Bangladesh bank. Shanchaya patra is issued by Jatio Shanchay Bureau guided by Bangladesh Bank.

Shanchaya Patra:

Shanchaya patras is received from Bangladesh bank (BB). People purchasing these bonds by depositing money in this branch and payment are made on maturity to customers from this branch only. Every transaction is reported to Bangladesh bank. In case of issuance, report to be reached to BB within 48 hours, otherwise penalty is imposed. Money is realized from BB after making payment to customer. Various types of Shanchaya Patras are sold here. They are as follows:

  • 8 years defense Savings certificate:

Any single individual can buy Pratirakha Shanchay Patra for up to TK. 15 lac but jointly any individual can buy for up to TK. 30 lac.

Interest Rate:

After 1 year 8.75% and per year 1% interest increases and on maturity 15.75%.

Denomination: (Tk.)          500, 1000, 5000, 10000, 25000, 50000, 100000.

(ii) 5 Years Bangladesh Shanchay patras:

Any single individual can buy Bangladesh Shanchay Patra for up to TK. 15 lac. But jointly any

Individual can buy for up to TK. 30 lac.

Interest Rate:

After one year 8.50% and 1% increases every year. On maturity 12.50%.

Denomination: (Tk.) 500, 1000, 5000, 10000, 25000, 50000, 100000.

(iii) 5 years Investment Scheme on Half Yearly Interest.

Any single individual can buy this for up to TK. 20 lac. But jointly any individual can buy for up to

  1. 40 lac. No firm or industry can buy this certificate.

Interest Rate: 12% (fixed) is payable after every 6 month. Denomination: (Tk.) 100000, 200000, 500000, 1000000.

(iv) 5 years Family Savings Certificate Scheme:

It is only for the women.

Interest Rate:

11.92% (fixed) is payable after every single month.

Denomination: (Tk.) 10000, 20000, 50000, 100000.

(v) 3 Years Investment Scheme on Quarterly Rest:

Any single individual can buy this for up to TK. 20 lac. But jointly any individual can buy for up to TK. 40 lac.

No form or industry can buy this certificate.

Interest Rate:

12% (fixed) is payable after every 3 month.

Denomination: (Tk.) 100000, 200000, 500000, 1000000.

Pay Order:

For issuing a pay order, the client is to submit an application to GB in the prescribed form. This form should be properly filled up and signed. The procedure of the issuing pay order is similar to that of the Local Draft. For issuing pay order PBL charges commission on the following rate—

  • For Tk. 1 to 100000, the commission is Tk.25.
  • For Tk. 100000 to 500000, the commission s Tk. 60.
  • For Tk 500000 to above, the commission is Tk. 75.

Payment of Pay Order:

The pay order is presented to the bank either through clearance or for credit to the client’s account.  While payment, relative entry is given in the pay order register with the date of payment.

 

 Cancellation of Pay Order:

The following procedure should be followed for the cancellation of the pay order:

i) The client should submit a written request for canceling the pay order     attaching therewith the original pay order.

ii) The signature of the purchaser will have to be verified from the original application form.

iii) Manager’s prior permission is to be obtained before refunding the amount of the pay order.

  • Cancellation charge is to be recovered from the applicant and only the amount of the pay order less cancellation charge should be refunded. Commission recorded for issuing of the original pay order should not be refunded.
  • Then the officer should write “cancelled” on the pay order.
  • The original entries should be reversed with narration.
  • Cancellation of the pay order should also be recorded in the register.

 

Online Branch Banking Section:

Prime Line:

The Bank has set up a Wide Area Network (WAN) across the country to provide Online Branch Banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank.

Under this system a client will to be able to do following type of transactions:

  • Cash withdrawal from his/her account at any branch of the Bank irrespective of location.
  • Cash deposit in his/her account at any branch of the Bank irrespective of location.
  • Cash deposit in other’s account at any branch of the Bank irrespective of location.
  • Transfer of money from his/her account with any branch of the Bank.
  • Any amount can be deposited or transferred under Prime Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

 

Deposit schemes section:

Bank is the largest organization of mobilizing surplus domestic savings. For poverty alleviation, we need self-employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being 17.78 %. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people.

PBL has formulated the following Savings Schemes:

  • Contributory Savings Scheme,
  • Monthly Benefit Deposit Scheme,
  • Special Deposit Scheme,
  • Education Savings Scheme,
  • Fixed Deposit Scheme,
  • Prime Bank Money Scheme,
  • Prime Bank Insured Fixed Deposit Scheme,

Contributory Savings Scheme:

This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term.

The Scheme is designed to help the fixed income group to save money and build up sizable funds with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations.

The salient features of the Scheme are given below:

  1. The size of the monthly installment is Tk.100, Tk.250, Tk.500 and Tk.1,000 to be deposited every month throughout the savings term.
  2. The term of savings shall be for 5 years, 8 years and 10 years.
  3. A lump sum amount shall be paid to the depositor after maturity of respective terms of savings as per the following table
InstallmentTk.100Tk.250Tk.500Tk.1,000
TermAmount Payable at Maturity (Taka)
5 years8,00020,00040,00080,000
8 years15,00037,50075,0001,50,000
10 years20,00050,0001,00,0002,00,000

 

  1. Account under the Scheme can be opened on the separate Form designed for the purpose. Introduction will not be required for opening of the Account.
  2. The depositor will have the option to choose any installment at the time of opening of an account but will not be allowed to change the size of installment afterwards.
  3. Account may be opened in the name of individual or joint names of two individuals. Account in the name of minors can be opened under the Scheme to be operated by the guardian.
  1. A person can open more than one account for different size of installments at any Branch of the Bank.
  2. The Account holder may appoint a nominee (s) to receive the balance in the account.
  3. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment.
  4. Normally no withdrawal shall be allowed before 5 (five) years. But, if any depositor intends to withdraw his savings due to certain unavoidable reasons before 5 (five) years, he will be allowed to do so, in the following manner:
  5. No benefit or interest shall be allowed for pre-mature encashment within one year.
  6. If the account is closed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate.

Special Deposit Scheme

This is a Deposit Scheme where deposit Installment is issued for the full amount payable after a specified period against deposit of a certain amount. The minimum term of deposit is 5 years and the scheme provides beneficial scope for investment of Provident Fund, Trust Fund, Reserve Fund/ Security Fund of various Institutions. It will provide opportunities to the Wage Earners for profitable investment of their savings.

The salient features of the Scheme are given below:

  1. Deposit of Tk. 1,00,000.00 and multiples thereof may be invested under the Scheme.
  2. Bank will issue ‘Order Instrument’ payable to a particular person, organization, firm etc. for an amount payable at maturity as written on the face of the Instrument as per the following table:
TermInitial Deposit   (Taka)Value Payable at Maturity (Taka)
5 years1,00,0001,65,000
7 years1,00,0002,00,000
10 years1,00,0003,00,000

 

  1. The Instrument shall not be Encashable before maturity. It may, however, be discounted at the counter of the issuing Bank at any time @15% on the remaining period of maturity, if necessary. The Instrument can also be discounted by any other Bank/ Organization/ Firm/ person. In case the Instrument is discounted by other Bank/ Organization/ Firm/ person, the Instrument may be retained with them till maturity or presented at the counter of the issuing Bank for immediate payment at the discounting rate. But, in no case the depositor shall receive less than the principal invested.
  2. Incase of death of the payee before maturity, the amount of the Instrument will be paid at a discounted rate to the nominee of the payee or, in the absence of nomination, to the legal heirs of the payee on production of Succession Certificate.
  3. The Instrument will be acceptable as primary/ collateral security against any advance / loan subject to registering the lien of the same with the issuing Branch of the Bank.
  4. In case of loss of the Instrument, rules pertaining to issuance of Duplicate FDR after loss of Fixed Deposit Receipt (FDR) shall be applicable for issuance of ‘Duplicate’.

Fixed Deposit Scheme:

This type of deposit should be kept for a fixed term or period. Prime Bank Limited deals with the following terms deposit.

Table:

Sl No.TermInterest Rate
130 Days6.00%
23 Months8.00%
36 Months8.00%
41 Year9.25%
52 Years9.75%
63 Years and above10.25%

 

Prime Bank Insured Fixed Deposit Scheme:

This scheme is offered by Prime Bank Limited in collaboration with ALICO.

The salient features of the Scheme are given below:

  1. Deposit shall be minimum Tk. 25, 000 or in multiple thereof.
  2. Insurance coverage shall be available up to Tk. 20 lacs.
  3. Insurance coverage for natural death will be 100 % of deposit amount and another 100 % for accidental death.
  4. The age of depositors should be between 18 to 45 years.
  5. The rate of interest of this deposit is 10.50 %.
  6. The minimum time for the deposit is 1 year.

Monthly Benefit Deposit Scheme

This is a Deposit Scheme where the depositor gets a fixed amount of profit every month without disturbance of the principal. The Scheme is designed to attract:

  1. The retirement benefits of service holders. The depositor gets a monthly pension.
  2. The investment of Wage Earners who want to pay a fixed amount monthly to their families/ dependents in Bangladesh from the profit of their investment.
  3. The deposit of those persons who intend to meet the monthly expense of their family from the income of their deposit.
  4. Investment of fund of Trusts and Foundations that award monthly scholarships/ stipends to students.
  5. Parents who want to defray the educational expenses of their children from the monthly benefit of their deposit with the Bank.

The salient features of the Scheme are given below:

  1. Deposit of Tk. 1,00,000.00 and multiples thereof shall be acceptable for the Scheme.
  2. The Deposit shall be for a period of 5 (five) years. The Principal amount is refundable on maturity.
  3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1,00,000.00.
  4. The payment of monthly profit will start after minimum gap of 30 days from the date of deposit.
  5. Normally, the deposit will not be encashable before 5 (Five) years. But if any depositor intends to withdraw his deposit due to certain unavoidable reasons, he would be allowed to do so, in the following manner:
  6. No benefit including interest shall be allowed for pre-mature encashment within one year.
  7. If the accounts / deposits are closed/ encashed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate. If the amount of monthly profit already paid exceeds the amount payable at normal Savings rate, the difference shall be deducted from the principal deposit amount.

Education Savings Scheme

The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country.  Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time.

Moreover, we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children.

With this end in view, Prime Bank Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i.e., on the basis of profit and loss sharing. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment.

The salient features of the Scheme are given below:

  1. Deposit of Tk. 25,000/- and multiples thereof at a time will be accepted under the Scheme.
  2. The instrument shall be issued for 7 years, 10 years, 15 years or 20 years term.
  3. The deposit is payable at maturity with benefit either in lump sum or on monthly basis as education allowance for 6 (six) years starting from the completion of the respective term as per the following table:
TermInitial Deposit (Taka)Lump sum amount payable at maturityAmount of Education allowances per month(6Years)
7 Years25,00055,0001,000
10 Years25,00077,0001,500
15 Years25,0001,36,0002,500
20 Years25,0002,40,0004,500

 

  1. The lump sum amount payable at the end of a particular term may vary due to variable rate of profit given on the yearly deposit. This will mean that the lump sum amount may ultimately vary and may be more-or-less than the figure mentioned in the table. If the actual amount payable becomes more than the amount shown in the table, the beneficiary will get an additional amount of money at the enhanced rate and contrarily if the lump sum amount ultimately becomes less than the figure shown in the table, the beneficiary will get the less amount whatever amount is shown in the table.
  2. To avail the education allowance, the depositor is required to deposit the receipt or Instrument with the Bank duly discharged by him with the written instruction to pay the amount to his /her son /daughter nominated by him/her on monthly installment basis as stipulated in the Scheme.

 

Prime Bank Money Scheme

Advances against Five Years Bangladesh Savings Certificate 

  1. Each unit of Five Years Bangladesh Savings Certificate shall be for Tk.50, 000
  2. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
  3. The Certificate(s) shall be held under lien.
  4. Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
  5. Installment per month will be Tk.930/-per Tk.50000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month is charged for any delay.
  6. After 5 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 86,250/ i.e., the benefit of the customer will be Tk. 20,450/0 per unit.
  7. Minimum loan amount Tk. 40,000/- and maximum amount in a single name Tk.12 lacs and in joint name Tk.24 lacs.

Advances against Eight Years Defense Certificate 

  1. Each unit of Eight Years Defense Savings Certificate shall be for Tk. 50,000/-
  2. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
  3. The Certificate(s) shall be held under lien.
  4. Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
  5. Installment per month will be Tk. 930/-per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month is charged for any delay.
  6. After 8 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 1,21,000/ i.e., the benefit of the customer will be Tk. 55,200/- per unit.
  7. Minimum loan amount Tk. 40,000/- and maximum amount in a single name Tk.12 lacs and in joint name Tk.24 lacs.

Advances against Five Years Family Savings Certificate (To Female Only).

  1. Each unit of Five Years Family Savings Certificate shall be for Tk. 50,000/-
  2. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
  3. The Certificate(s) shall be held under lien.
  4. Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
  5. Installment per month will be Tk. 380/- in cash and monthly interest for Tk. 550/ to be transferred to adjust loan account to the customer per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month is charged for any delay.

Advance against Five Years 6 Monthly based Profit Savings Certificate.

  1. Each unit of Five Years 6 monthly-based profit Savings Certificate shall be for Tk.1,00,000/-
  2. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
  3. The Certificate(s) shall be held under lien.
  4. Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
  5. Installment per month will be Tk.748/. Bank shall appropriate 6 monthly interest of Tk. 6,750/- every six months adjust the loan account per Tk. 1, 00,000/- worth of certificate. Monthly installment is Tk. 1,873/-. Installment must be paid within 5th of every month. Penal interest @ 2% per month is charged for any delay.
  6. After 5 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 1,00,000/ i.e., the benefit of the customer will be Tk. 35,120/- per unit.
  7. Minimum loan amount Tk. 80,000/- and maximum amount in a single name 8 lacs only.

 

Clearing Section:

According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. This is an arrangement by the central bank where every day the representative of the member banks gathers to clear the cheque. Banks for credit of the proceeds to the customers’ accounts accept Cheque and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawee banks to collect the proceeds, it would be necessary to employ many messengers for the purpose. Similarly, there would be many cheque drawn on this the messengers of other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure.

All the labor, Risk, delay and expenditure are substantially reduced, by the representatives of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse.

Activities of the Section:

(a) Preparation of Clearing Outward and Inward Lodgment and record maintenance of the same.

(b) Batch posting as and when required.

On receipt of instruments, the same is endorsed here. Then clearing section will sent IBDA to head Office for clearing purpose and on receipt of IBCA from Head Office amount is credited to customers account and vice versa. If the instrument is return then the same is given back to the customer.

Collection Section:

Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. Mirpur-1 Branch collects its client’s above-mentioned instruments from other branches of PBL and branches other than PBL. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of inward bills customers account is debited for this purpose. So it place dual role as follows:

  1. Collecting Banker
  2. Paying Banker.

There is one Officer working over desk in this department.

Activities of the Section:

  • Preparing of Outward and Inward Collection Item.
  • Inter-Branch Transfer.
  • Batch posting and checking as and when required.
  • Other works as and when require.

Collection is done when

(i) Paying Bank is located outside Dhaka City.

(ii) Paying Bank is other branches of PBL situated inside Dhaka City.

  • Paying Bank is outside Dhaka City:

Collection department of Mirpur-1 Branch (Principal Branch), PBL sends outward bills for collection (OBC) to the concerned paying bank to get inter Bank Credit Advice (IBCA) from paying Bank. If the paying bank dishonors the instrument, the same is returned to principal Branch.

  • The Paying Bank of their own branches inside Dhaka City:

Collection Department sends transfer delivery item to other branches of same bank situated inside Dhaka City. Upon receiving IBCA customer’s a/c is credited.

 

Accounts Section:

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 hamper public confidence and the bank has to suffer a lot. Improper recording of transactions will lead to the mismatch in the debit side and credit side. To avoid these mishaps, the bank provides a separate department whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called Accounts Department.

Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements.

Functions of Accounting Department:

We can divide the functions of accounting department into two categories. One is day-to-day task and another is periodical task.

Day to day functions: Here day-to-day function refers to the everyday tasks. Accounting department of PBL performs the following day to day functions:

  • Recording of transaction in the cashbook, general and subsidiary ledger.
  • Preparing the daily position of deposit and cash.
  • Making the payment of the expense of the branch.
  • Recordings of inter branch fund transfer.
  • Checking whether all the vouchers are correctly passed.
  • Recording the voucher in the voucher register.
  • Packing and maintains the total debit and total credit vouchers.

Periodical functions: Periodical functions of accounts department include the preparation of different weekly, fortnightly, monthly, quarterly and annual statement. The accounts department prepares the following statements:

  • Monthly statement of deposits, loans and advances, profit and loss etc.
  • Quarterly statement of deposits, loans and advances, profit and loss etc.
  • Yearly statement of deposits, loans and advances, profit and loss etc.
  • Yearly statement of classified Loans and Advances.
  • Statement of Affairs.
  • Yearly Budget of the Branch, etc.

Cash Section:

Cash section is a very sensitive organ of the branch and handle with extra care.  Operation of this section begins at the start of the banking hour. Cash officer begins his/her transaction with taking money from the vault, known as the opening cash balance. Vault is kept in a much secured room. Keys to the room are kept under control of cash officer and branch in charge. The amount of opening cash balance is entered into a register. After whole days’ transaction, the surplus money remain in the cash counter is put back in the vault and known as the closing balance. Money is received and paid in this section.

Cash Receipt:           

  • At first the depositor fills up the Deposit in Slip. For saving account and current account same Deposit in Slip is used in this Branch.
  • After filling the required deposit in slip, depositor deposits the money.
  • Officers at the cash counter receives the money, count it, enter the amount of money in the register kept at the counter, seal the deposit in slip and sign on it with date and keep the banks’ part of the slip. Other part is given to the depositor.
  • In this branch, i.e., Mirpur-1 Branch, two different officers maintain two different books for entering such entries. All deposits of saving account are maintained by one officer and other accounts by another officer.
  • At the end of the day entries of both of these registers are cross checked with the register kept at the cash counter to see whether the transactions are correct or not.

Cash Payment:

  • When a person comes to the bank to cash a cheque, (s) he first gives it to the computer desk to know the position of the check and posting of the cheque. If the account has sufficient fund the computer in charge will post it into the computer, will sign it and seal it.
  • This cheque is then sent to the concerned officer. There are two officers who verify the cheques – one for savings and similar types of account and another for current and similar types of account.
  • After receiving the cheque respective officer first checks it very carefully for any kind of fraudulent activity. (S) He also checks the date of the cheque, amount in word, amount in figure and signature of the drawer.
  • If the instrument is free of all kind of error the officer will ask the bearer to sign on the back of it.
  • He will then put his/her initial beside the bearers’ signature. (S) He will also sign it on its face; will write down the amount by red pen.
  • Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument.
  • The cash officer will then enter the details of the cheque in his/her register and will pay the money to the bearer.


 

FINDINGS AND RECOMMENDATIONS

Prime Bank has focused on enhancing the long term sustainability of the bank, building value for the shareholders, employees and the wider community. Its activities are driven by ethical business practices and sense of responsibilities to all stakeholders. Since the start of the global economic crisis, many felt that Bangladesh will not be adversely affected by the crisis. But now we can see that slowly and gradually we are also getting affected. Bangladesh is captive to what transpires in international market and economies of leading countries. Against the background Bangladesh cannot be immune from the global economic slowdown and is most likely to be affected sooner or later. The global financial crisis is likely to adversely affect principally in three sectors, namely exports, aid-flow and foreign direct investment.

As per earnest observation some suggestions for the improvement of the situations are given below:

  • Low cost deposit should be increased by procuring more current account and savings account of the total deposit to reduce total cost of fund.
  • Effective and efficient initiatives are necessary to cover the default loans.
  • A thorough credit and risk assessment should be done before granting loans.
  • The spread between interest rate of deposits and advances should be at a sustainable level.
  • Prime Bank has become centralized recently. Bank should give authority to the branches in some extent, so that they can take swift decisions.
  • Providing more industrial loans. It seemed to me that the bank having a large amount of deposit is not encouraging the large scale producers that much of long term industrial loans to accelerate the economy as well as to help the economy to solve unemployment problem.
  • Ensure Sufficient Forms and Brochures: There are always shortages of application forms, brochures, etc. in the branch. These Forms and Brochures must be maintained in sufficient quantity. Otherwise, customer service will be hampered.
  • Ensure Proper Maintenance of Office Premises. Every branch is supposed to be very neat and clean and well decorated because it matters to attract customers. They do not use proper physical cues which could help customer to not get confused about specific contact person. The cleaners are not regular in their duties and files and papers are kept here and there by the officers during the busy hour. This habit must be changed. Moreover, the sitting arrangement is very insufficient comparing with the number of customers. So, Mirpur-1 Br. of PBL must pay attention to these issues.
  • Banking is service oriented business. Its business profit depends on its service quality. So the service delivery of the branch should be closely monitored.
  • Though Prime Bank is still lagging behind in upgrading their software system, the bank has the prospect to select high quality banking software which will make the banking operations easier and smoother.
  • In general banking department it is necessary to implement modern banking process instead of traditional system. It should be more computerized means dynamic.
  • Branch should give requisition for new printer and photocopy machine to improve their service.
  • Coordination between Logistics & Support Divisions and the branches should be improved.
  • Ban’s ATM service should be spread more so that it can cover more customers.
  • Bank’s ATM services should use better technology to fasten their services.
  • Proper training should be given to all employees on regular basis to identify the suspicious transactions for Anti Money Laundering compliance policy.
  • To avoid high risk of lending, bank should expand its fee based banking services e.g. Bank Guarantees, Merchant Banking, Remittance & advisory services.
  • Ensuring transparency of its financial reports.
  • Some time the branch’s computers remain out of order and it is also true for the photocopiers. Attention should be given on proper maintenance of phone, computer, fax machine and photocopier.

 

CONCLUSION:

Banks play a vital role in the economic development of the country. The popularity of banks is increasing day by day which leads to increase competition as well. Currently 52 Banks are operating in Bangladesh. All the Commercial banks are offering almost the same products and services and almost same their operation system. But the ways they provide the services are different from each other. So people choose their Bank according to their satisfaction and need. And they will prefer the bank of which service is easily accessible and understandable. One the other hand, Bank innovate new products and services to attract their desired customers. Prime Bank also has different types of Credit Program. Consumer Credit Scheme is one of innovative program of PBL and this program is very much popular for its easy accessibility and easy procedures. Since the popularity of this scheme is increasing day by day, Prime Bank take it as a challenge to become a leader of CCS through innovative and the use of above mentioned recommendations.

To conclude this report it can be said that it was a great opportunity to study the operational activities of PBL. Having passed three months in PBL Mirpur-1 Branch, I have learned many activities practiced in the bank. Since the working areas were in General banking the report may not cover all the practices of the branch. The work experience in PBL Mirpur-1 Branch was very interesting and this experience will help me in great deal in my future life.

Prime Bank Limited is operating its branches on conventional based banking and Islamic Shariah based banking. Prime Bank Limited also a pioneer in online customers services, foreign exchange and distinctive loan offerings. In these ways PBL is helping in accumulating domestic savings, resource mobilization and creating job opportunities for many people which will gear up the economy as a whole.

Without bank’s cooperation it is not possible to run any business or production activity in this age. The job environment is very good at PBL Mirpur-1 Branch. At the same time the service which the bank provides to its customers are very prompt and quality ones compare to other foreign and private banks. So Prime Bank Limited will survive in the banking sector with the slogan “A Bank with a difference”.

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