Background of Jamuna Bank Limited
Jamuna Bank Limited is a banking company registered under the companies Act 1994 with its Head office at Chini Shilpa Bhaban (2nd floor, 3rd floor & 8th floor), 3, Dilkusha, C/A, Dhaka-1000.The bank started its operation from 3rd June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank started its operation with an Authorized Capital of TK.1600.00 million which is amended by TK. 4000.00 million ,as of December 2007 Paid-up Capital of the bank raised to TK 1313.27 million.
JBL undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. The Bank gives special emphasis on Export Import, Trade Finance, SME Finance, Retail Credit and Finance to Woman Entrepreneurs.
To provide clientele services in respect of international Trade it has established wide correspondent banking relationship with local and foreign banks covering major trade and financial centers at home and abroad.
Jamuna Bank Ltd., the only Bengali named new generation private commercial was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to other the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of trade, commerce and industries. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The scenario of banking business is changing environment. Jamuna Bank Ltd. Has already achieved tremendous progress within only two years. The Bank has already ranked the top out as a quality service provider & is known for its reputation.
Jamuna Bank Ltd. Offers different types of Corporate and Personal Banking services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities.
|Name of the Bank||Jamuna Bank Limited|
|Incorporation Date||April 2,2001|
|Date of commencement||April 2,2001|
|Corporate Address||Chini Shilpo Bhaban(2nd,3rd & 8th floor),3,Dilkusha,C/A,Dhaka-1000,Bangladesh|
|Chairman||Mr. Sakhawat ,Abu Khair Mohammad|
|Vice Chairman||Mr.Md. Ismail Hossain Siraji|
|Directors||Engr. A.K.M. Mosharaf HussainEngr.Md. Atiqur Rahman|
Al-Haj Nur Mohammad
Mr.Md. Tajul Islam
Al-HajMd. Rezaul Karim Ansari
Mr.Md. Belal Hossain
Mr.Md. Mahmudul Hoque
Mr. Farhad Ahmed Akand
Mr. Gazi Golam Murtoza
Mr. Kanutosh Majunder
Mr. Mohammad Nurul Alam (Independent Director)
|Managing Director||Mr.Md. Motior Rahman|
|Secretary||Mr.Md. Anwar Hossain|
|Deputy Managing Director-1||Mr. M.A. Salam|
|Deputy Managing Director-2||Mr.Md. Alauddin Al-Azad|
|Auditors||M/S Howladar Yunus &Co.(Charterd Accountant)|
|Number of Branches||39 as of 2008|
|Total number of Employee||935 as of 2008|
|Listing Status||Dhaka & Chittagong Stock Exchange Ltd|
Organizations are open system that needs careful management.Jamuna Bank discreetly pursues the principles of openness, disclosure and compliance to regulatory authorities, transparency in performance, integrity in dealings, ethics in banking and accountability to the shareholders in corporate governance.Jamuna Bank is pledge-bound to keep it free from the clutches of loan default culture. All our units are the centers of excellence. Our underlying commitment to professionalism and a single-minded devotion to service to our customers characterizes our style in all operations. We involve with the changing needs of our customers and the processes go on.
The Bank ensures orderly relations between clearly defined functions of the Board of Directors and the management. Their role remains sharply bifurcated .The Board formulates policies and frames procedures. Be management implements them and acts within norms. The management enjoys full independence in managing the banking industry, especially its credit portfolio without any undue influence from outside. It, however, functions in a reutilized, efficient, suitable and dynamic way to foster progress, promote general welfare of the society and infuse its people to serve the nation. In corporate governance, we strictly comply with the requirement of companies Act-1994, Bank Companies Act 1991, rules and regulation of Bangladesh Bank and other regulatory authorities.
Jamuna Bank’s Corporate Governance structure comprises the following bodies:
Board of Directors,
Executive Committee of the Board,
Audit Committee of the Board,
Independent External Auditors,
Employees of JBL share certain common values. This helps to create a JBL Culture.
The Client comes first.
Search for professional excellence
Openness to new ideas & new methods to encourage creativity
Flexibility and prompt response
A sense of professional ethics.
Currently the Jamuna Bank has 41 (Forty One): 16 in Dhaka,2 in Gazipur,8 in Chittagong, 3 in Sylhet, 2 in Naogaon, 1 in Munshiganj, 1 in Naryangonj, 1 in Bogra, 1 in Dinajpur, 1 Rajshahi,1 in Basurhat,1 in Noakhali,1 shirajgonj,1 in kushtia,1 in Comilla,and 1 in Laksham (including 12 rural and 2 Islamic Banking Branches).More branches and service center will be opened at commercially important locations during the year 2009.
Source: Annual Report 2008 of JBL
Source: Annual Report 2008 of JBL
To become a leading banking institution and to play a pivotal role in the development of the country.
To stand out as a pioneer banking institution in Bangladesh.
To contribute significantly to the national economy.
The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.
Jamuna Bank Limited aims to become one of the leading Banks in Bangladesh by prudence, flair and quality of operations in their banking sector. The bank has some mission to achieve the organizational goals. Some of them are as follows as:
Fast & accurate customer service and Innovative banking at a
High quality financial services with the help of latest technology.
Deep commitment to the society and the growth of national economy.
Attract and retain quality human resource, High standard business ethics.
Balanced growth strategy, Steady return on shareholders’ equity
Your Partner for growth.
The Bank will be a confluence of the following three interests:
Of the Bank : Profit Maximization and Sustained Growth.
Of the Customer : Maximum Benefit and Satisfaction.
Of the Society : Maximization of Welfare.
Core Values of JBL:
æCustomer focus æ Integrity
æTeam Work æ Respect for individual
æ Quality æResponsible citizenship
JBL is managed by highly professional people. The present Managing Director of the bank is a forward –looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in fiancé and banking. The Management of the bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof.Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers & known for its reputation.
The Sponsors of Jamuna bank limited are highly successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industries & businessmen having wide business reputation both at home & abroad.
Customer Service and Automation:
Out-bank will extend fully automated set-vices with quickness and accuracy. We shall use latest banking technology to reinforce internal control, improve the accuracy of records maintained, to facilitate introduction of new products and services, to reduce cost and increase productivity, Bank starts Computerized banking operations from day one. There is plan for on-line banking set-vice.
Jamuna Bank Limited has a conviction of maintaining a strong capital base in carrying on operation. It started operation on June 03, 2001 with a paid-up capital of Tk.390.00 million divided into 3.90 million ordinary shares of Tk.100 each. The authorized capital of the Bank was Tk. 1600.00 million and in 2007 it increased and stood at Tk. 4000.00 million divided into 40 million ordinary shares of Tk.100.00 each. The Bank’s paid-up capital as at 31st December 2008 stood at Tk. 1313.27 million,Tk.429.00 million was raised through initial public issue of 4.29 million ordinary shares of Tk. 100.00 each with a premium of Tk. 20.00 each while Tk. 214.50 million was raised by issue of Bonus Share for every 4 share s in the ratio of 1:4,i.e.one bonus share, on the holding of 8.58 million ordinary shares as on 31.12.2005,one Bonus share for every 4 shares out of profits up-to the year 2005 and Tk.153.21 million was raised by issue of Bonus shares in the ratio of 1:7 in the year 2006.In the year 2007 Tk.87.56 million was raised by issue of Bonus share in the ratio of 1:4.Thus , as on 31st December 2008,the total shareholders’ equity and reserve stood at Tk.2160.73 million and total bank’s capital stood at Tk. 2444.34 million.
Analysis of Capital Structure:
Capital structure of JBL has changed from year to year. The components of the capital structure are paid-up capital; proposed issue of dividend, share premium, statutory reserve, proposed cash dividend, retained earnings and other reserve.
Table: 3 Authorized and paid up Capital of JBL:
|Authorized Capital (TK) In Million|
|Paid Up Capital (Tk) In Million|
Source: Annual Report 2008 of JBL
Capital Adequacy Ratio:
The Bank adopted BIS risk adjusted capital standards to measure the capital adequacy in line with the criteria set by Bangladesh Bank. According to the instructions contained in Bangladesh Bank’s BRPD Circular No 05 dated May 14, 2007 relating to Capital Adequacy every commercial bank operating in the country is required to maintain at minimum 10 percent of its risk-weighted assets as capital. Jamuna Bank Limited could maintain capital Adequacy ratio of 11.91 percent as at 31.12.2008, which was higher than the required Capital Adequacy Ratio. The amount of capital with break-up is given below:
Source: Annual Report 2008 of JBL
From the above it reveals that Jamuna Bank Limited was able to increase its core capital from Tk. 1651.58 million to Tk. 2131.02 million and supplementary capital from Tk. 221.14 million to Tk.313.32 million and total capital from Tk. 1872.72 million to Tk.2444.34 million.
In 2008 Jamuna Bank Limited posted an operating profit of Tk. 1040.20 million as against Tk. 824.21 million in 2007 with a spectacular growth of 26.21 percent over the preceding year. After having made necessary provisions for loans and advances Tk.174.39 million in accordance with instructions of Bangladesh Bank Net Income before Tax (NIBT) stood at Tk 865.82 million in the year under review against Tk. 405.04 million in the preceding year. An amount of Tk.382.05 million has been kept as provision for payment of Tax. Thus Net Income after tax and provision stood at Tk. 479.44 million in 2008 which was Tk. 89.11 million in 2007.
|No. of Foreign Correspondent|
333390643715715No. of Employees447525631861935No. of Branches1923293539
Source: Annual Report 2008 of JBL
Jamuna Bank Limited offers different types of Corporate and Personal Banking services involving all segments of the society within the purview of the rules and regulations as laid down by the Central Bank and other Regulatory Authorities.
All types of deposit accounts:
The client can maintain different types of deposit accounts-
Foreign Currency Account according to his necessity and convenience.
Special deposit Scheme:
Ananta account, FD chamak,
Student’s saving scheme, Pension Deposit Scheme,
Car Deposit scheme, Travel Deposit Scheme,
Easy Account, NRB Gift Cheque,
Small Savings Scheme, Abashon Deposit Scheme,
Household Durable Deposit Scheme Daily Profit Savings Account,
Jamuna Bank Paribar, Sangshar Deposit Scheme,
Crorepati Deposit Scheme, Millionaire Deposit Scheme
Education Saving Scheme Lacpati Deposit Scheme,
Marriage Deposit Scheme, Marriage Deposit Scheme,
Tuition Savings Deposit Scheme Monthly Benefit Scheme,
Senior Citizen Benefit Scheme, Tripple Growth Deposit Scheme,
Overseas Earner’s Deposit Scheme Mudaraba Hajj Savings Scheme,
Hi-Fi-FDR, Rural Deposit Scheme
Double Growth Deposit Scheme
Money Multiplier, Quarterly Benefit Scheme,
Special Service Savings Account for Housewives
Monthly/Travel/Abashon/Household Durable/Tuition Savings Scheme.
General Loan Facility:
Letter of Credit, Bank Guarantee,
Cash Credit, SOD,
Loan (general) Hire Purchase, Lease Finance,
Work-order Finance, Export Finance,
HouseBuilding Loan, æLDBP
SME Credit Scheme:
Double Loan (Double amount of loan of FDR value)
Loan for purchase of possession right for shop/business
Shop/Business office renovation loan
Loan for purchasing capital machinery & vehicle
Working capital/Trade Finance
Flexible working capital loan
Loan for Herbal Industry
Loan for Women Entrepreneur
Real time On-Line any branch banking
24 hours ATM
Retail Credit Products:
Any purpose lifestyle loan æLoan against salary
CNG conversion loan æCar loan
Travel Loan æConsumer Loan
Household Durable Loan, æStudy Loan
JBL Debit & Credit Card æDoctors Loan
General banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here.
Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. In JBL, the following departments are under general banking section:
Account opening section
Opening of an account binds the banker and into a contractual relationship. Customer relationship establish through opening an account. Generally who are receiving bank’s service we may call them as a customer. But bank consider them as a customer who have an account with them
Procedure for opening an account:
Major information’s are essential for identification of the account holders individually so that banker can discharge his obligations to every one correctly and to the extent due. Following are the customer must complete the formalities.
Application on the prescribed form
Furnishing photographs (2 copies)
Introduction by an account holder
Recording of specimen signature in the specimen card
Mention nominee on the prescribed form
Furnishing nominee’s photograph (one copy)
Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank.
Banks, as a financial institution, accept surplus money from the people as deposit and give them opportunity to withdraw the same by cheque, etc. But among the banking activities, cash department play an important role. It does the main function of a commercial bank i.e. receiving the deposit and paying the cash on demand. As this department deals directly with the customers, the reputation of the bank depends much on it.
Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.
The amount of Cheque, Pay Order (P.O), and Demand Draft (D.D.) Collection of amount of other banks on behalf of its customer is a basic function of a Clearing Department.
The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and industrial activities through an effective delivery system. Jamuna Bank Ltd. offers credit to almost all sectors of commercial activities having productive purpose. The loan portfolio of the Bank encompasses a wide range of credit programs. Credit is also offered to major thrust sectors, as marked by the govt., at a reduced interest rate to develop frontier industries. Credit facilities are offered to individuals including housewives, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc. Loan is provided to the rural people for agricultural production and other off-farm activities. Loan pricing system is customer friendly. Quick appreciation, appraisal, decision and disbursement are ensured. Credit facilities are extended as per guidelines of
Bangladesh Bank (Central Bank of Bangladesh) and operational procedures of the Bank.
To raise capital up to Tk.1000.00 million by March 2005
To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund
To strive for customer satisfaction through quality control and delivery of
To identify customers credit and other banking needs and monitor their
perception towards our performance in meeting those requirements.
To review and update policies, procedures and practices to enhance the
ability to extend better services to customers.
To train and develop all employees and provide them adequate resources so
that customer needs can be responsibly addressed.
To promote organizational effectiveness by openly communicating company
plans, policies, practices and procedures to all employees in a timely fashion.
To cultivate a working environment that fosters positive motivation for
To diversify portfolio both in the retail and wholesale market.
To increase direct contact with customers in order to cultivate a closer relationship between the Bank and its customers.
Steady return on shareholders equity
Deep commitment to the society
Well being of employees
Balanced and disciplined growth strategy
Personalized customer service in good days and in adversity
Creed of people:
Service to the nation with hard work
Discipline and obedience
Honest and fairness
Quest for professional excellence
Adjustment and assimilation
Customers can withdraw and deposit money from all branches located throughout the Country. Our valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at different location throughout the Country.
All the existing customers of Jamuna Bank Limited will enjoy this service by default.
æCentralized Database æReal time any branch banking
æPlatform Independent æInternet Banking Interface
æATM Interface æCorporate MIS facility
POS (Point of Sales) Network
Internet Banking Network
Competitive pricing of products and services
High standard business ethics
Fully automated banking service
Making our lending rewarding to the borrowers
JBL shall allocate corporate resources to areas having the greatest growth opportunities and national interest.
As a commercial bank, we long for earning profit. But we shall never be oblivious of our commitment to the society where we operate. Apart from contributing to the national exchequer, Jamuna Bank will keep aside a chunk of its profit for social work, relief to distresses humanity and sponsoring cultural and sporting events. Our commitment today will ensure a brighter tomorrow
Jamuna Bank is a customer driven modern banking institution. Its competence center where quality customer services is both a source of professional pride and a recipe for success. Our defined client commitments are-
Belief in professionalism
Personalized banking service basing on mutual trust
Continuity of facilities
Use of new and latest banking technology in service
Banking life-long customer banker needs
Sharing value and belief
Tie with customer’ thinking
Time saving one point service
Solving customer’s problems
Innovative products and services
Formulation of a long-term strategic plan for carrying on business vis-à-vis achieving profitability goals is underway so that a momentum may be brought. The Bank has started the process of formulating a long term strategic plan so as to maintain the momentum of overall growth and strong performance in its core business. To meet the changing need of the customers JBL has planned to expand its exposure in the following areas
Full duplex Online Banking system.
Enhancing In-house Training Facilities.
By modernizing the Training Institute.
Expansion of business network at home and abroad.
Innovation and introduction of new liability/asset products.
Credit Card, Visa Card.
Internet Banking, ME & Retail lending.
Operating of new branches.
Disaster Recovery Site (DRS).