www.crislbd.org downloaded 5th January,2008
Rated by the Credit Rating Information and Services Limited (CRISL).
The above rating has been done in the consideration of visible improvement in fundamentals such as capital adequacy, liquidity position, profitability, introduction of real time online banking etc. The above rating is- moderated, to some extent by limited marked share, increase in NPL, high cost of fund, moderate corporate governance, dependency on term deposit etc. Financial institutions rated in this category are adjudged to offer adequate safety repayment of financial obligations. (Credit Rating Information and Services Ltd)
Balance with Bangladesh Bank (BB) Its Agents:
The balances maintained with Bangladesh bank and ,t£ agents are 966.67 million Taka and increased by 3.57 percent at the end of December 2007 Due to the increase in deposit the bank increased balances with Bangladesh Bank and its agents for maintaining proportionate Cash Reserve Requirement (CRR).
Balance with Other Banks/Financial Institutions:
The balances maintained with other banks and financial institutions are 1,877.14 million Taka in 2007 and decreased by 23.12 percent mainly due to transfer of funds to different banks’ for covering the payments against inward foreign remittances.
Money at Call & short Notice:
Money at call and short notice was decreased by 78.38 percent in 2007 over the previous year. The fund placement was mainly made in 12 banks and financial institutions.
The bank’s investment grew by 111.15% and stdod at Tk. 539 crore in 2007-against Tk 252.27 crore in the previous year. It mostly invested in high yielding long-term government securities to cover the increased statutory liquidity ratio (SLR) requirement arising from the growth of deposit liabilities.
Deposits & Deposit Mix
The deposit vase of the bank registered a growth of 21.05% from Tk 1728.48 crore in 2006 to tk.2092.40 crore in December 2007. Expanded branch network, innovative deposit products including NMS and NDS attracted a huge number of customers, which contributed to the growth of deposit the main customers include individuals, corporations, financial institutions, government & autonomous bodies, etc.
Borrowings from other Banks, Financial Institutions and Agents
The bank registered 286.67% growth in borrowings from other banks, financial institutions and agents In 2007. This growth was mainly due to borrowing from Bangladesh Bank under Export Development Fund (EDF)
Other liabilities increased by tk. 83.40 crore due to current tax liability and for making provision for loan loss. Provision for income tax was Tk. 31.59 crore m 2007 which was Tk. 24.66 crore in the 2006,
Authorized capital of the bank is Tk 400 crore. The paid-up capital of the bank stood at Tk 1225.71 crore in 2007. The Statutory reserve enhanced by Tk 9 crore in 2007 and stood Tk. 33.06 crore. The total equity of shareholders of the bank at the end of the year 2007 stood at Tk. 165.65 crore.
Interest Income registered an increase of 12.15% from Tk. 276.98 crore in 2006 to Tk 310.63 crore in 2008 due to growth of advances.
The income from investment jumped sharply by 87.02% from Tk.25,21 crore in 2006 to Tk. 47.15 crore in 2007. Capital gain from sale of shares and high yield treasury bills and bonds contributed to the robust growth of investment income. Commission and Exchange earnings decreased by 2.45% from Tk 32.88 crore in 2006 to Tk 32.07 crore in 2008.
Overall increase of deposits pushed up the interest by 10.42% from Tk. 160.69 crore in 2006 to Tk 177.44 crore in 2007. Salary & allowances increased by Tk 4.38 crore due to yearly increment and for new appointments. Rent, taxes, insurance premium, utility charges, etc increased by Tkl .50 crore as the bank opened 06 new Branches during 2008.
Total operating expenses increased by Tk. 6.28 crore from Tk. 44.17 crore in2006 to Tk. 50.44 crore in2008.
Operating & Net Profit
Jamuna Bank Ltd generated an operating profit of Tk 82.42 crore in 2007 which was Tk.70.13 crore in 2006, registering a growth of 17.52%. Net Profit after tax decreased by 64.84% to Tk.8.91 crore in 2007 after making provision for loans loans and income tax.
Jamuna Bank Limited continued to be very active in international trade through financing export-import business and mobilizing wage-earner’s remittances. In 2007 the bank handled import business of Tk. 2219.18 crore compared to Tk. 1545.77 crore in the preceding year. The bank handled export business worth Tk. 1399 crore in 2007. The bank has also expanded its external business by undertaking export bill negotiations, realization of export proceeds, foreign remittance, etc.
Import trade finance by JBL rose to Tk 2,219.18 crore in reporting year compared with Tk 1,545.77 crore in 2006. The growth increased by43.57%. Large LCs was opened mainly for importing industrial raw materials, machinery, consumer goods, fabrics, accessories etc.
As a regulatory body Bangladesh Bank wants all banks to take effective measures for implementation of risk management in banking operations covering the major risks in asset-liability management, credit risk management, Foreign Exchange Risk Management, Internal Control & Compliance and Money Laundering Prevention. As these risks are integral parts of banking business JBL has put highest priority on management of such risks with intense monitoring of credit portfolios. We believe these will improve our operational and financial performance along with meeting the regulatory requirements. The Bank is in constant efforts to establish superior monitoring of credit risks and returns. For bringing in harmonious matching between assets and liabilities ALCO reviews these on a regular basis for keeping risk in this area to an acceptable level. The Bank’s credit policy guidelines arid procedures are continuously reviewed and upgraded by its internal committees. The Bank also pursues an effective internal control system by establishing systems and procedures for scrutinizing the transactions periodically, encompassing key back-up
supports and commissioning regular contingency plans Through establishment of proper governance structure risk and returns are evaluated with a view to producing sustainable revenues, reducing volatility in earnings arid enhancing value to shareholders. Maintenance of quality of assets is always the key issue to the JBL Management. Continuous efforts are made to maintain earning assets at the highest possible level so as to maximize profits and minimize cost of operation.
Importance of application of Information & Communication Technology (ICT) in banking is needless to emphasize. Jamuna Bank is gradually adopting the most sophisticated centralized Banking Solution to keep pace with changing developments meeting Bangladesh Bank regulatory requirements on ICT.
JBL has launched a comprehensive and real time On-Line Banking solution. This Bank is just a step behind to select the Centralized Online Banking Solution. Set up of Flora Bank On-line Banking Software, switching software, servers, ATM, data storage system and other hardware to set up equipped center in Computer Division bears testimony to adoption of technology.
Delivery channel of JBL online banking
Branch banking. Tele-Banking Network
• ATM Network
• POS(Point of Sales)
• SMS Banking Network
• Internet Banking Network 3,27 Employee Benefits:
Employees are the blood of any organization. An institution cannot run properly without an efficient and effective management learn. Jamuna Bank management team has provided its efficiency by executing decisions and running the bank for the last 08 years. In recognition to their contribution, the board has formulated a number of policies for the welfare of the employees. The board has introduced superannuation fund, gratuity, medical scheme, car loan scheme, and other benefits for executives/officere/staff of the bank. (Annual Report of Jamuna Bank Ltd, 2008)
While working at IBL Ashulia Branch, I have attained a newer kind of Experience. After collecting and analysis I have got some fillings and rcommendations. These findings are completely from my study. They are as follows:
1. Bank need to increase its quality of customer’s service.
2. Training & Development officers & higher Executives are required.
3. Need to speed up processing of loan application.
4. JBL provides high quality financial services to strengthen the well being and success of individual industries & business communities.
5. JBL is a national bank not multinational bank. So for the international transaction, it has to take help of others multinational banks.
6. Inter Banking Process is so fast and clean which as one of the reasons of success,
7. Flora On-line banking software is used by JBL and this is quite difficult to use for the employee, as the employees are not well trained.
8. Present profit is high enough but a great scope to enhance this amount with some changes
9. Clients are not conscious about the new product of tins bank.
This is a technique used by the credit officers to evaluate credit proposal submitted by company especially by the production concern. It is also very helpful to evaluate the present & future performance of a firm.
Here, S stands for Strength.
W stands for Weakness.
O stands for Opportunity
T stands for Threats
X JBL provides its customers excellent and consistent quality in eveiy service. It is of highest priority that customer is totally satisfied.
X Stable Source of Funds
X Strong Liquidity Position
X Low Cost Fund
X Satisfactory profitability
X JBL provides the Moneygram money transfer service for these customers are easily getting the foreign money.
X JBL also provide devid card service facility.
• JBL has very limited human resources compared to its financial activities. There are not many people to perform most of the tasks.
• Lack of latest or improved technologies and skilled manpower -for operating foreign trade business.
• Some of the specific sector in financial analysis shown that Bank management efficiency is poor then other bank.
• Lack of Strong Initiative to Explore Investment Opportunity Through Research And Marketing
• Government of Bangladesh has rendered its full support to the banking sector for a sound financial status of the country, as it is becoming one of the vital sources of employment in the country now Such government concern will facilitate and support the long tern vision for JBL.
• Emergence of e-banking will open more scope for JBL
• For getting higher market share in foreign exchange business, JBL has to be more efficient and swift in service.
• Globalization and open market economy open the door to diversify areas and create opportunity to run in home and abroad.
• Credit Card Business
• The worldwide trend of mergers and acquisition in financial institutions is causing concentration the industry and competitors are increasing in power in their respective areas.
• As previously mentioned, the world is advancing towards technology very fast. Through JBL taken effort to join the stream, it is not possible to complete the mission due to the poor technological infrastructure of our country,
• Foreign Bank like – Standard Chartered & HSBC have extensive network worldwide which is an integral part in foreign trade. Both banks enjoy this competitive advantage. Government has recently decided to convert some govt bank to public limited company which will increase intensity of the competition in the local market.
• The entire department should be well informed regarding their goals and objectives. It is essential to execute company objectives into individual target.
• There must be a clear allocation of responsibilities authority and accountability.
• The bank should introduce more promotional activities.
• The bank should take the initiative to develop an effective research and development center to get innovative ideas to capture the competitive market.
• Now a day’s on-line banking is not a very uncommon service totally for private commercial bank. JBI, provide On-line banking service but they take source charge for it, if the customers do not use his/her mother branch. To encourag customers to use On-line banking facility this service charge
should not betaken charge from the customers.
• Customer service of bank has a greater impact on its customer. To provide smarter customer service they need a call center department is very popular now a day.
• Foreign exchange operations of other banks are more dynamic and less time consuming. JBL should take some initiative to compete with those banks.
• Selection and training must be focused to develop and exploit leadership and entrepreneurial qualities within the work place.
• JBL is not providing the Credit Card facilities, which is available in many other banks.
Sol think the bank should introduce this system very earlier.
The internship program of three month on Jamuna Bank Limited at Ashulia Branch in Dhaka is completed successfully. Jamuna Bank Limited is a popular and profitable bank in Bangladesh. It has been giving service to customer since 2001 properly. The bank has already developed good image and goodwill among its clients by offering excellent services. Today, the whole Banking sector is facing a tough competition and challenge. In this situation our Branch is in good position than any other Bank of its locality and day-by-day we are increasing our activities & goodwill.
I worked with them daily. I learned all the tasks of all departments as an officer of a bank. Now I know the system of the bank and duty of an officer of a bank. It is now easy to me to perform any task of this branch or any other bank. It will develop my experience and knowledge of banking activities. The system of this branch is and fast Present performance is good enough. Profit is remarkable. And a great scope to enhance the goodwill, performance and profit in near future.