Background of Jamuna Bank Limited

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 BankJamuna  Bank Limited
Incorporation Date         April 2,2001
Date of commencement April 2,2001
Corporate AddressChini Shilpo Bhaban(2nd,3rd & 8th floor),3,Dilkusha,C/A,Dhaka-1000,Bangladesh
ChairmanMr. 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-1Mr. M.A. Salam
Deputy Managing Director-2Mr.Md. Alauddin Al-Azad
 Auditors                              M/S Howladar Yunus &Co.(Charterd Accountant)
Number of Branches         39 as of 2008
Total number of Employee935 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,

      Regulatory Agencies,


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

      Quick decision-making

      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.

Table: 1


Source: Annual Report 2008 of JBL

Table: 2


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

competitive price.

      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

                    æRespect                                             æCourtesy

                    æInsight                                               æCommitment

                    æHarmony                                           æFairness


      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, 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 Position:

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:

Table: 4

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.

Table: 5


Financial Year

Authorized Capital1600.001600.001600.004000.004000.00
Paid-Up Capital429.00429.001072.501225.711313.27
Reserve Fund245.65487.46629.33647.011131.07
Operating Profit308.83419.94701.32824.211040.20
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.

Deposit Products:

 All types of deposit accounts:

 The client can maintain different types of deposit accounts-

                  Current,                                          Savings,

                  STD,                                               FDR

                   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.

      Loan Products:

      General Loan Facility:

                      Letter of Credit,                                Bank Guarantee,

                   Cash Credit,                                        SOD,

                   Loan (general) Hire Purchase,            Lease Finance,

                    LIM,                                                    LTR

                    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

                     Festival Credit

                     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

      Electronic Products:

                    Real time On-Line any branch banking

                    24 hours ATM

                    Debit card

                    Credit card

                    Telephone banking

                    SMS banking

                    æInternet Banking

      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

                   Marriage 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

      Deposit section

      Cash    section

      Remittance section

      Clearing section

      Accounts section

Account Opening:

           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 Section:

           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.

Cash Section:

           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.

Clearing Section:

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

timely services

      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

improved performance

      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.

Corporate Goal:

      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

      Constructive thought

      Honest and fairness

      Quest for professional excellence

      Goal orientation

      Adjustment and assimilation                                                                              

Online Banking:

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.

Key features: 

               æCentralized Database                 æReal time any branch banking

               æPlatform Independent                æInternet Banking Interface

               æATM Interface                           æCorporate MIS facility

 Delivery Channels: 

               Branch Network

               ATM Network

               POS (Point of Sales) Network

               Internet Banking Network

Strong Capitalization:

      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

      Distinctive competence

      Tie with customer’ thinking

      Highest safety

      Time saving one point service

      Mutual growth

      Financial advice

      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.

      SMS Banking.

      Merchant Banking.

      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).

Jamuna Bank Limited