Report.docx

CHAPTER 1: Introduction 1.1 Introduction It’s simple enough to say that Bank is financial organization that deals with money. But it is the precise most definition about bank. In modern age it is impossible to think a country without bank. Banks play diversified role in an economy. Banking plays very significant contribution towards socio-economic development of a country. This sector is considered to be like the life blood the economy as well. As one of the most important components of the financial system it forms the core of the money market and plays very pivotal role in mobilizing resources for productive investments in a country which in turn contributes to economic development. The efficiency of the sector is very important for overall development of the country. The most important task that is done by a bank is building of capital. That is the key factor of the development of an economy. An Industrialized nation’s build their industrial sector with the help of banking sector. The growth of the economy also depends on the performance of the banking sector. Banks secure money of the society. Government takes various monetary policies. These policies are implemented with the help of banking sector. It is impossible to do foreign trade without the help of bank. Banks provide services that help the business sector a lot to carry on the business. This report has been prepared in the light of practical as well as theoretical knowledge. Also it is prepared under the guidance and supervision of the core teacher. During the internship program I have got a good idea about the bank and that is depicted in the report.

1.2

Origin of the Report

The BBA (Bachelor’s of Business Administration) internship program is required course for the students who are graduating from Metropolitan University. It is a three credits hour course with the duration of 12 weeks. Students who have completed all the required courses are eligible to for this course. In this internship program, I was attached to do my internship by rotation to all departments of Southeast Bank, Uposhahar Branch, and Dhaka. The academic supervisor assigned me on this Report.

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The report is on “General Banking Activities of Southeast Bank Limited: A Study on Uposhahar Branch, Sylhet”.

1.3

Background of the study:

In the program of BBA, courses were on business studies from theoretical aspects. There were no sufficient scopes to learn practical knowledge about business and its environment, theory and practices are inter-related and are equally important. Today’s world all of the Commercial banks have significantly expanded and changed of their financial services to the clients and governments. That is why every professional has to possess clear concept regarding these changes and he/she needs to conform to these changing environments. A professional is a person who is skilled in the theoretical, scientific and practical aspect of an occupation and who performs with a high degree of competence & integrity. This internship program assisted me to develop professional attitude towards banking business & environment. Basically, this study will help to construct a skillful tenure in banking sector. This report has been prepared in the light of practical as well as theoretical knowledge that is shared by honorable management executives of Southeast Bank Limited (Uposhahar Branch).

1.4

Objectives of the Study:

The core objective of this study is to gain realistic and practical understanding about banking structure and activities. The broad objective and specific objectives of the study are given below: 14.1 Board Objective The broad objective of this study is to be familiar with the working environment of present institutions, know the internal culture of the corporate world and fulfill the requirements of BBA theoretical knowledge gained from the course work of the BBA program in a specific field 1.4.2 Specific Objective 

To present an overview of SEBL.



To evaluate the existing activities and techniques of SEBL.

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

To gain knowledge about the activities and functions of General Banking: account opening, accounts section, cash handling.



To relate the theoretical learning with the real life situation.



To provide recommendation on the basis of findings.

1.5

Scope of the study:

Worldwide economic situation continued to pose adverse impact on most developing countries including Bangladesh challenging the possibility of registering a positive growth. Banking system holds a significant position in a nation’s economy. It plays a crucial role in the economic advancement of a country and shapes the central part of fiscal market in a highly developed country. Bank Asia Limited is doing a formidable job. So far researchers have a very specific scope to overview the whole system. The report covers the background, functions and mostly the General Banking Activities of Southeast Bank Limited. The preparation of this report offers a great opportunity to have an in-depth knowledge of banking activities practiced by the branch. This report has been made based on the experience gathered during the period of 3 months’ internship. It was a huge opportunity for me to practically learn and execute the entire process of General Banking activities.

1.6 Methodology of the Study: This part of the report contains which data sources I have used to gather all the related information about Southeast Bank Limited and their activities. This study is based on secondary sources and also from primary sources. 1.6.1 Primary Sources:  Direct conversation with the bank officers;  Exposure on different desk of the bank;  Observing various organizational procedures.  Conversation with the clients; 1.6.2 Secondary Sources:  Annual Report of Southeast Bank Limited;  Different publications regarding foreign exchange operation;

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 From Newspapers and Internet;  Files and documents of the branch.

1.7 Limitation of the Study 12 weeks are not enough to know about commercial banking operation through I have been received maximum assistance from the every individual of the SEBL, Upashahar Branch. Definitely, I could not produce an outstanding report for the time limitations. Due to the time limit, the scope and dimension of the study has been curtailed. The Term paper is

likely to have following limitations:  Since the ideal size of data could not be taken, suggested operating process may not be useful without appropriate modifications.  Due to shortage of time, the accuracy of information may not have been completely perfect.  The Operating Process is a theoretical suggestion. Only a practical application of this may justify its effectiveness that could not be done due to time limitation.  Lack of comprehension of the respondents was the major problem that created many confusions regarding verification of conceptual question.  Confidentiality of data was another important barrier that was faced during the conduct of this study. Every organization has their own secrecy that is not revealed to others. While collecting data on SEBL, personnel did not disclose enough information for the sake of confidentiality of the organization.  Rush hours and business was another reason that acts as an obstacle while gathering data.

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CHAPTER 2: Overview of the Specific Industry 2.1 Introduction Banks are among the most important financial institution in the economy. Banks are the financial intermediaries that collect money from surplus spending individual and institutions (whose current income exceeds their current expenditure and they have surplus funds to save and invest) and loan this fund to the deficit spending individuals and institutions (whose expenditure on consumption and investment exceeds their current income and who therefore need to raise fund externally through borrowing). Banking has changed in many ways through the years. Banks today offer a wider range of products and services than ever before, and deliver them faster and more efficiently. But bank’s prime function remains as it has always been. In Bangladesh banks are the first choice for saving, borrowing, and investing their money.

2.2 Definition of Bank A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Bank can be called as an establishment authorized by a government to accept deposits, pay interest, clear checks, make loan, act as intermediary in financial transactions and provide other financial services to its customer. Bank is a financial institution that accepts the surplus money of the people in the form of deposit and gives it to other form of loans and advances. According to professor Chamber, “Bank is an office or institution for keeping, lending and exchanging etc of money.” According to John Harry, “Bank is an economic institution whose main aim is earn profit through exchange of money and credit instrument.” From the above definition we can say that, Bank is an institution which deals with the money. It receives surplus fund from individuals or any organizations and gives money to individuals or organizations that needed in exchange of profit or interest. So bank is

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an intermediary between the surplus units of the society who save and the deficit units of the society who borrow.

2.3 Features of a Bank Bank is a financial institution which deals with other people’s money i.e. money given by depositors. 1. A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. 2. A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts. 3. A bank works as an agent for its customer and provides utility services. 4. Banks make loans to consumers, businesses and organizations. Loans represent funds that are extended by the Bank to the creditor who agrees to pay the funds back, with interest, over a specified time period. 5. Banks are operated with the objective of making a profit. Their fee structure and interest rate is designed with the intention of making money for owners and shareholders. 6. A bank acts as a connecting link between borrowers and lenders of money. Bank collects money from those who have surplus money and give to those who are in need of money.

2.4 Banking Banking is an activity which involves acceptance of deposits for the purpose of lending or investing. Banking also involves providing various other services along with its main banking activity. According to the oxford dictionary of Finance and Banking, “Banking is the activities undertaken by bank.” So we can say that, Banking is the summation of all activities of bank.

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2.5 History of Banking The English Word “Bank” is derived from Italian word “Banco” which means Bench. The Latin “bancus” and French word “banque” which means a bench. There are the opinions that the medieval European bankers (i.e. money changers and money lenders) transacted their banking activities on the benches in the market place. This money changing and money lending business is known as the “Banking Business.” The history of Banking is very old; actually, the need of keeping the surplus of earning safely created the need of banking activities. So, the concept of Banking first established around 2000 BC in Assyria and Babylonia. This concept spread to the Dutch Republic in the 16th century and in the 17th century in London. Various monarchs have established the necessity of banking in different ways. Banking concept was well established in the whole Europe by the time of Adam Smith. He came along with the “Invisible Hand” theory. Empowered by his views of a self-regulated company, money lenders and bankers managed to limit the states’ involvement in the banking sector and the economy as a whole. This free market capitalism and competitive banking found fertile ground in the new world, where the United States of America was getting ready to emerge. At first the US Banking system was not benefited by the smith’s theory. They only issued bank notes against gold and silver coins. Alexander Hamilton, the secretary of treasury established the national bank to direct the issuance of bank notes and maintain the reserve of the bank notes. Gradually, many banking activities like loans, corporate finance transferred at the hand of merchant banks. After the World War I, U.S. replaced the Europe as the center of financial world. World War II created the opportunity to spread the banking activities through the whole world. Banks have come a long way from the ancient world, but the basic business practices have not changed. Now, at the present world, banking activities have come in our own hand through the blessings of internet and online activities.

2.6 Banking in Bangladesh After the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central Bank of the country, and named it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank Order, 1972 and the Bangladesh Bank came into existence Page-7

with retrospective effect from 16 December 1971. In the 80s it was increasingly felt that a number of PCBs might have improved their position putting nationalized banks into competition. The launching of PCBs has finally created a significant impact in quality of services in banking. Banking being a service industry, it is not easy to quantify the performance of this sector like manufacturing. After the independence, banking industry in Bangladesh started its journey with 6 nationalized commercialized Banks, 2 State owned specialized Banks and 3 Foreign Banks. In the 1980s banking industry achieved significant expansion with the entrance of private Banks. Now, Banks in Bangladesh are primarily of two types: 2.6.1 Scheduled Banks The Banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are termed as Scheduled Banks. Banks which are included in the list of central Banks are termed as Schedule Banks. There are 57 schedule Banks which include:  6 State Owned Commercial Banks  2 Specialized Banks  40 Private Commercial Banks 

32 Conventional Banks



8 Islamic Banks

 9 foreign Commercial Banks. 2.6.2Non-Scheduled Banks: The banks which are established for special and definite objective and operate under the acts that are enacted for meeting up those objectives, are termed as Non-Scheduled Banks. These banks cannot perform all functions of scheduled Banks. There are 4 non schedule banks.

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2.7 List of Banks in Bangladesh 1. Scheduled Bank (56) A. Central Bank:

 The Premier Bank Limited

 Bangladesh Bank

 Bank Asia Limited

B. State Owned Commercial Bank:

 Trust Bank Limited

 Sonali Bank

 Jamuna Bank Limited

 Rupali Bank

 Meghna Bank Limited

 Agrani Bank

 AB Bank Limited

 Janata Bank

 The Farmers Bank Limited

 BASIC Bank Limited

 NRB Bank Limited

 Bangladesh

Development

Bank

Limited. C. Private Commercial Bank:  BRAC Bank Limited  Eastern Bank Limited  Dutch Bangla Bank Limited

 NRB Commercial Bank Limited  NRB Global Bank Limited  Midland Bank  Modhumoti Bank Limited  South

Bangla

Agricultural

&

Commerce Bank Limited.

 Dhaka Bank Limited

D. Islamic Commercial Bank:

 Pubali Bank Limited

 Islami Bank Bangladesh Limited

 Uttara Bank Limited

 ICB Islami Bank

 IFIC Bank Limited

 Shahjalal Islami Bank Limited

 National Bank Limited

 First Security Islami Bank Limited

 The City Bank Limited

 Exim Bank Limited

 United Commercial Bank Limited

 Al-Arafah Islami Bank Limited

 NCC Bank Limited, Prime Bank

 Social Islami Bank Limited.

Limited  South East Bank Limited  Standard Bank Limited  One Bank Limited  Mercantile Bank Limited  Bangladesh Commerce Bank Limited  Mutual Trust Bank Limited

E. Foreign Commercial Bank:  HSBC  Standard Chartered Bank  Commercial Bank of Ceylon  State Bank of India  Habib Bank  National Bank of Pakistan Page-9

 Woori Bank  Bank Al-Falah  Citi Bank NA.

2. Non-scheduled Banks (4):  Ansar VDP Unnayan Bank  Karmashangosthan Bank

F. Specialized Bank:

 Probashi Kollyan Bank

 Rajshahi Krishi Unnayan Bank

 Jubilee Bank.

 Bangladesh Krishi Bank.

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CHAPTER 3: Company Information 3.1 Historical Background of SEBL: Southeast Bank Limited was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contribute significantly to the growth of the national economy. The Bank was established by leading business personalities and eminent industrialists of the country with stakes in various segments of the national economy. The incumbent Chairman of the Bank is Mr. Alamgir Kabir, FCA, a professional Chartered Accountant. Southeast Bank is run by a team of efficient professionals. They create and generate an environment of trust and discipline that encourages and motivates everyone in the Bank to work together for achieving the objectives of the Bank. The culture of maintaining congenial work - environment in the Bank has further enabled the staff members to benchmark themselves better against management expectations. A commitment to quality and excellence in service is the hallmark of their identity. Southeast Bank takes pride for bringing women into the banking profession in a significant number for gender equality.

3.2 SEBL Profile at a Glance: COMPANY PROFILE Head Office

Eunoos Trade Center 52-53, Dilkusha, C/A (Level-2, 3, 4 & 16) Dhaka - 1000, Bangladesh.

Date of Incorporation

12th March 1995

Principal Activity

Commercial Banking

Legal Status

Public Limited Company

Chairman

Mr. Alamgir Kabir, FCA

Vice Chairman

Ragib Ali

Managing Director

ShahidHossain

Company Secretary

Muhammad Shahjahan

Website

www.southeastbank.com.bd

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Authorized Capital

Tk. 15,000.00 million

Paid Up Capital

Tk. 9,169.50 million

Year of Initial Public Offer

1999

Market Lot

50 Shares

3.3 Vision of SEBL: “To be a premier banking institution in Bangladesh and contribute significantly to the national economy” it is important for managers and executives in any organization to agree upon the basic vision that the firm strives of achieve in the long term. A clear vision provides the foundation for developing a comprehensive mission statement. It has created a cadre of young professionals in banking profession which has helped boosting productivity in the bank.

3.4 Mission of SEBL: Southeast Bank Limited aims to become one of the leading banks in Bangladesh by prudence, flair and providing quality of operations in their banking sector. The bank has some mission to achieve the organizational goals. Some of them are as follows as:  High quality financial services with state of the art technology  Fast customer service  Sustainable growth strategy  High Ethical standards in business  Steady return on shareholders’ equity  Innovative banking at a competitive price  Attraction and retention of quality human resource  Commitment to Corporate Social Responsibility.

3.5 Objectives of Southeast Bank Limited: Given below the objectives of SEBL:  To introduce fully automated systems through integration of information technology.  To ensure an adequate rate of return on investment. Page-12

 To keep risk position at an acceptable range (including any off balance sheet risk).  To maintain adequate control systems and transparency in procedures.  To develop and retain a quality work-force through an effective human Resources Management System  To earn and maintain CAMEL Rating 'Strong'.  To ensure optimum utilization of all available resources.  To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.  To be the market leader both in terms of deposits and good loans among private commercial banks.  Main objective is to have a higher profitability than that of the weighted average of other banks.

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3.6 Hierarchy of SEBL: Chairman Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President First Vice President First Asst. Vice President Senior Principal Officer Principal Officer Executive Officer Management Trainee Senior Officer Probationary Officers Officer Junior Officer Asst. Officer Trainee Cash Officer Page-14

3.7 Organizational Structure of SEBL, Uposhahar Branch: Senior Vice President (Branch Manager) Senior Assistant Vice President (Operation Manager) Senior Principal Officer (SPO) Principal Officer (PO) Executive Officer Senior Officer Probationary Officer Officer Junior Officer Asst. Officer Trainee Cash Officer Trainee Asst. Officer

3.8 Products & Services of SEBL: Bank is a service-oriented industry and deals with various financial products and services for financial gains. Southeast Bank Limited is a full service Bank with adverse array of comprehensive range of carefully tailored financial services and customer friendly uncompleted banking products geared for the needs of all customers segments.

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Financial products and services products that Southeast Bank Limited offers to its customers are mainly classified as under: 3.8.1 Deposit Products: Deposit products are those products that are collected from the customers to generate funds of the bank. The following deposit products are launched by Southeast Bank Limited: Conventional banking:  Savings Bank (SB) Account  Current Deposit (CD) Account  Special Notice Deposit (SND) Account  Fixed Deposit Receipt (FDR) Account  Double Benefit Scheme (DBS) Account  Millionaire Deposit Scheme (MDS) Account  Pension saving Scheme  Education saving Scheme  Monthly Savings Scheme (MSS) Account  Monthly Income Scheme  Multimillionaire Gold Deposit Scheme Islamic Banking:  Mudaraba Savings Bank (SB) Account  Al - Wadiah Current (CD) Account  Mudaraba Special Notice Deposit (MSND) Account  Mudaraba Term Deposit Receipt (MTDR) Account  Mudaraba Double Benefit Scheme (MDBS) Account  Mudaraba Monthly Savings Scheme (MMSS) Account Page-16

 Mudaraba Hajj Sanchay Prokalpa  Mudaraba Millionaire Deposit Scheme (MMDS) Account 3.8.2 Loan & Advances Products: Southeast Bank Limited is offering the following loan and advance product to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client. The loan and advance products are:  Working Capital Finance  Overdraft (OD)  Project Finance  Syndicated Loan Packing Credit  Loan Against Export Bill  Loan Against Trust Receipt  Import Financing  Export Financing 3.8.3 Remittance Products: Southeast Bank Limited offers the following remittance products:  Pay Order (PO)  Demand Draft (DD)  Foreign Remittance 3.8.4 International Business Products: International Business Products that is offered by Southeast Bank Limited are as under:  Letter of Credit (L/C)  Back to Back Letter of Credit (BTB L/C)  Buying & Selling of Foreign Exchange

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 Foreign Demand Draft (FDD)  Foreign Telegraphic Transfer (FTT)

3.9 Services of Southeast Bank Ltd: Southeast Bank Ltd. Offered many services for their customer and following these are:  SME Banking  Dual Currency VISA Credit Card  Virtual Card  Remittance Business  Western Union  SWIFT Services  Locker Services  ATM Services  Internet Banking Services  Bill Payment Services  E-Statement Services

3.10 Achievement of Southeast Bank Ltd: Southeast Bank perfectly published its every annual report with disclosure and Financial Statement complying the adopted Accounting Standard. In recognition, ICBA has honored Southeast Bank with Recognition Award of Merit for the best published accounts for the year 2016and 2017.

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3.11 Credit Rating of Southeast Bank Ltd: Year 2016 2017

Long Term AA AA-

Short Term ST-2 ST-2

Credit Rating Information and Services Limited (CRISL) has upgraded the rating of SEBL with “AA” (pronounced as double A) in Long Term and reaffirms “ST-2” rating in Short Term based on financials up to December 31, 2016 and other qualitative and quantitative information. SEBL’s Long Term Rating has been upgraded to “AA” which focused higher safety and higher credit quality. In Long Term here risk are modest and may vary slightly from time to time because of economic conditions. This level of rating indicates a banking entity with high quality, offer higher safety and have high credit quality. The Short Term rating “ST-2” indicates high certainty of timely repayment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small. SEBL thanks to its all valued stakeholders for making it happen.

3.12 Profit, Deposit and Advance position of SEBL, Upashahar Branch: Taka In Particulars Profit Deposit Advance

Crore Actual as on June Achieved up to July 2016 2017 9.45 12.75 526.9 548.58 315.5 294.42

Growth 34.92% 4.11% -6.68%

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CHAPTER 4: General Description of the tasks completed during Internship 4.1 General Banking Activities: To make profit in business you need to sell product or service. A bank does not produce any tangible product to sell but does offer a variety of financial services to customers. General banking is the starting point of all the banking operations. It is the department which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets theirs demand for cash by honoring cheque. It opens new accounts, remit funds, issue bank draft & pay orders etc. Since bank is confined to provide the service every day. General banking is known as Retail banking.

Figure- 4.1: General Banking Activities

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4.2 Function Of This General Banking Department: General banking department has four functions such as front desk or account, cash section, clearing section, account section in Southeast Bank. Those various sections do various works by which general banking activities. 4.2.1 Account Opening Section: When a person is willing to make saving on bank or others need to then they open an account. To establish a banker and customer relationship account opening is first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very important because there are many fraud people who deal with illegal thing through bank .So the Bank takes in its selection of customers very carefully. The Following Works Are Done By This Section:Accepting Deposits: If a customer want to open an account, at first banker has to accept deposit. The relationship between a banker and customer begins with the opening of an account by the former in name of letter. Initially all accounts are opened with a deposit of money by the customer and hence these accounts are called deposit account. Banker solicits deposits from the number of public belonging to different lifestyle, engaged in numerous economic activities and having different financial status. There are two officers performing various functions in this department. The deposits those are two accepted by SEBL may be classified into: A) Demand deposit B) Time deposits. A) Demand Deposits: The amount in accounts are payable on demand so it is called demand deposit account. SEBL accepts demand deposits through the opening of Current account  Savings account

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Current Account: Both individual and business open this type of account. Frequently transaction are (deposit as well withdrawal) allowed in this type of a account. A current a/c holder can draw check on his account, any amount and any number of times in a day as the balance in this account permits. Criteria of current account followed by SEBL:  Generally

opened

by

businessman,

government

and

semi-government

organization; with proper introduction  No interest is provided for deposited amount  Overdraft is allowed in this account  Minimum opening balance is TK 5000.  A minimum balance of TK. 500/- has to be maintained Savings Account: Individuals for savings purposes open this type of account. Current interest rate of these accounts is 06% per annum. Interest on SB account is calculated and accrued monthly and Credited to the account half yearly. Interest calculation is made for each month based on the lowest balance at credit of an account in that month. A depositor can withdraw from his SB account not more than twice a week up to an amount not exceeding 25% of the balance in the account. If anyone withdraws money more than twice he/she will not get the interest for that month. Criteria of savings account followed by SEBL:  An appropriate introduction is required for opening the A/C;  Frequent withdrawal is not encouraged;  A depositor may withdraw money from his/her account twice in a week;  Minimum amount of TK.5000 is required as initial deposit;

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 Depositor may withdraw his/her deposited money up to 25% of the Balance in his/her account without notice. The bank may realize service charge in its discretion.  Depositor will get interest on the amount deposited in his/her account. B) TIME DEPOSITS: A deposit which is payable at a fixed date or after a period of notice is a time deposit. In SEBL Upashahar Branch accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD), and Schemes etc. While accepting these deposits, a contract is done between the bank and the customer. When the banker opens an account in the name of a customer, there raises a contract between the two. This contract will be a valid one only when both the parties are competent to enter into contracts. An account opening initiates the fundamental relationship and since the banker has to deal with different kinds of persons with different manner. After accepting deposit banker in Southeast Bank Limited at Upashahar Branch, person or organization has to fill up account opening form. Account opening form consist of Signature card  Personal information sheet  KYC  Term and Conditions page  SBS But these could vary depending on type of account. Clients have to provide the following information: Name of applicant(s),  Present address,  Permanent address,  Passport number(if any),  Tax Identification Number (if any)  Date of birth, Page-23

 Nationality,  Occupation,  Nominee’s name and signature (s),  Special introducer ,  Initial deposit  Specimen signature of the applicant(s),  Introducer’s information etc.  Source of Fund If the transaction profile does not match with KYC, bank should report to Bangladesh Bank. Then signature of that person or organization who are opening account is needed attested by introducer signature of that person or it and specimen signature card. The individual who is going to be customer need properly introduced by following:  An existing customer,  Officials of the bank who are not the rank of Assistant officer,  A respectable person who is well known to the Manager or authorized officer.

The authorized officers analyze the introduction and examine the documents that have submitted such copy of National Id/copy of passport/ copy of driving license of that person who open account, copy of nominee(s) National ID, photograph of that person and photograph of nominee(s).then concern authority will allocate a number for a new account. Then customer deposits the “initial deposit” by filling up deposit slips. Initials deposit to open a current account in SEBL is TK.10000 or saving account is tk.500.after depositing the cash one cheque book and pay-in-slip book is issued. The account is considered to be opened in SEBL at Upashahar Road Branch. Upashahar Road Branch maintains account in computer through Bank Ultimus Software. After depositing the initial deposit, Upashahar Branch records it in the computer by giving new account number. Then it issues a cheque book requisition slip by the customer. That distributes all relevant paper to relevant department. Fixed Deposit Receipt (FDR):

Fixed Deposit Receipt offers the customers the opportunity to invest a fixed amount for a fixed period at a fixed rate of interest. The customers have the option to re – invest Page-24

their funds both principal amount and interest amount on maturity or principal amount and the interest amount being paid into their SB or CD accounts. Money can grow with attractive interest rate with flexible tenure. 1. Automatic renewal facility at maturity. 2. Loan facility against FDR to meet urgent financial needs. 3. The customer may avail loan facilities against FDR as security. 4. Premature closure facility at savings rate. Activities &Papers Necessary for Opening an Account (A) 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. (B) Partnership firm: The following documents have to be submitted for preparing an account of a partnership firm: The following documents have to be submitted for preparing an account of a partnership firm: a. Partnership deed. b. If the partnership firm is a registered one, then one copy of registration forms. c. If not, then a copy of certificate from the notary public. (C) 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 Southeast 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. Page-25

 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). (D) 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). (E) Co-operative Society: Following documents have to be obtained in case of the account of Co-operative 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. (F)Trustee Board: Following documents have to be obtained in case of the account of trustee board: i) Prior approval of the Head Office of SBL. ii) 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. (F) Minor’s Account: Following documents have to be obtained in case of the account of minor: i) Putting the word “MINOR” after the title of the account. ii) 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.

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 Short Term Deposit (STD) Account: In Short Term Deposit account, the deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. In SEBL, SMR various big companies, organizations, Government Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice. STD Account opening procedure is similar to that of the saving account Interest rate for STD account---------6.00% per annum In SEBL, SMR usually customers give an instruction to the Bank that their current account will be debited whenever its deposited amount crosses a certain limit and this amount will be transferred to the STD account. Southeast Bank Upashahar Branch has some other Special Schemes which is given below:A. Double Benefit Scheme (DBS): Amount to be deposited: TK. 10,000 or Multiple. Duration: 7 years (double) Terms and conditions:  A Person of 18 years of age and above having a sound mind can open the account  A person can open more than one DBS account at any branch of the Bank of the Bank and in such case separate form should be filled.  A passport size photograph of each account holder is required to open the account  DBS account can be opened at any working day of the month  DBS account can be opened in joint names or in the name of institution  DBS account can be opened in the name of a minor. In that case, Banks existing account opening formalities for opening accounts for minor will be followed. B. Monthly Savings Scheme (MSS): Duration: 2 years, 3 (three) Years & 5 (Five) Years Amount of Monthly Installment: TK.500 or Multiple amount up to TK.25, 000 (Twenty five Thousand).

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Terms and conditions:  A Person of 18 years of age and above having a sound mind can open the account  A Person can open more than one MMSS account at any branch of the Bank and in such case separate form should be filled  A passport size Photograph is required to open the account  MMSS account can be opened at any working day of the month.  Account opened within first 10th of any month will be treated as account of that particular month. If the account is opened after 10th of any month in that case 1st installment will be due and realized from the next month.  MMSS account cannot be opened in the name of any minor, in joint names, or I n the name of institution.  An account can be transferred from one Branch to another Branch of the Bank by a written application of the account holder. In such case a fee of TK. 500 is payable as banks service charge  Installments can be deposited in advance. C. Monthly Income Scheme (MIS) Duration of the Account: 3 (three) Years & 5 (five) years Amount to be Deposited: TK.10, 000 or its multiple (Deposited amount will be returned on maturity). Terms and conditions:  A Person of 18 years of age and above having a sound mind can open the account  A person/institution can open more than one MMIS account at any branch of the Bank and in such case separate form should be filled.  The applicant must open /have a CD Savings Deposit account within the branch in which monthly income will be credited automatically.

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 MMIS account cannot be opened in the name of any minor but it can be opened in joint names, or in name of any institution  An account can be transferred from one Branch to another Branch of the Bank by a written application of the account holder. In such case a fee of TK. 500 is payable as banks service charge D. Pension Savings Scheme (PSS): Duration: 4, 6 and 8 Years Terms Amount of Monthly Installment: 500 or multiple up to TK.25, 000 (i.e. Tk.500 or 1000or 1500) TERMS AND CONDITIONS:  A Person of 18 years of age and above having a sound mind can open the account  A person can open more than one MPSS account for different amount at any branch of the Bank and in such case separate form should be filled in.  A passport size photograph of the account holder and each nominee (attested by the account holder) are required to open the account  The account can be opened at any working day of the month.  Account opened within 10th of any month will be treated as account opened on the particular month. If the accounts opened after 10th of any month in that case 1st installment will be due from the following month and will be realized in the following month.  MPSS account can be opened in the name of minor .In that case minor’s legal guardian can operate the account  Account cannot be opened in joint names, or in the name of any institution. Issuing Cheque Book to the Customers: When a customer’s account is opened, a fresh cheque is issued to the account holder only after against requisition on the prescribed requisition slip attached with the cheque book issued earlier, after proper verification of the signature of the account holder

personally

or

to

duly

authorized

representative

against

proper

acknowledgement. The following procedure is occurred in issuing cheque book: Page-29

A customer who opened a new account initially deposit minimum required money in the account. Then account opening form for is sent for issuance of a cheque book. Respective officer first draw a cheque book. At present one officer. Officer then sealed it with branch name .in-charge officer enters the number of cheque book in cheque issue register. Officer also enters the customer‟s name and account number in same register. Account number is then writing down on face of the cheque book and on every leaf of book including requisition. Customer who opens new account initially deposits minimum required money in the name of customer is write down on face of cheque and on requisition slip. The word “Issued on” along with the date of issuance is written down on requisition slip. . Then number of cheque book and date of issuance is also written on application form. Next, customer is asked to sign in cheque book register. Then respective officer signed on face of requisition slip. Put this initially in the register and hand over the cheques book to customer. Issue of Duplicate cheques book: Duplicate cheques book instead of lost one should be issued only when an A/C holder personally approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing to indemnify the Bank for the lost cheque book. Fresh check Book in lieu of lost one should be issued after verification of the signature of the Account holder from the Specimen signature card and on realization of required Excise duty only with prior approval of manager of the branch. cheques series number of the new cheques book should be recorded in ledger card and signature card as usual. Series number of lost cheques book should be recorded in the stop payment register and caution should be exercised to guard against fraudulent payment. Issue of New cheques book (FOR OLD ACCOUNT): All the procedure for issuing a new cheques book for old account is same as the procedure of new account. Only difference is that customer have to submit the requisition slip of the old cheques book with date, signature and his/her address. Computer posting is then given to the requisition slip to know the position of account and to know how many leaf/leaves still not used. The number of new cheques book is entered on the back of the old requisition slip and is signed by the officer.

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Procedure of issuance of a new cheques book: If the cheques are handed over to any other person then the account holder the bank addressing the account holder with details of the cheques book issues an acknowledgement slip. This acknowledgement slip must be signed by the account holder and returned to the bank. Otherwise the bank will not honour any cheques from this cheques book. At the end of the day all the requisition slips and application forms are sent to the computer section to give entry to these new cheques. Dishonor of Cheque: If the cheque is dishonored, SEBL sends a memorandum (cheque return memo) to the customer stating the reason in the following way:  Refer to drawer.  Not arranged for.  Effects not cleared May be present again.  Exceeds arrangements.  Full cover not received.  Payment stopped by drawer.  Drawer‟s signature differs/ required.  Alterations in date/figures/words require drawer‟s full signature.  Cheque is posts dated/out of date/mutilated.  Amount in words and figures differs.  Crossed cheque must be present through a bank.  Clearing stamps required/requires cancellation.  Addition to the discharge of Bank should be authenticating.  Cheque crossed “Account Payee Only”

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Transfer of an account:  The customer submits an application mentioning the name of the branch to which he wants the account to be transferred.  His signature cards, advice of new account and all relevant documents are sent to that branch through registered post.  The balance standing at credit in customer‟s account is sent to the other branch through Inter Branch Credit Advice (IBCA).  No exchange should be charged on such transfer.  Attention is also given in this connection Closing the account: Upon the request of a customer, Southeast Bank Limited (SEBL) closes an account of that customer. After receiving an application from the customer to close an Account, the following procedure is followed by banker of SEBL. Then banker of front desk of SEBL ask customer to draw the final cheque for the amount standing to the credit of his account less the amount of closing and other incidental charges and surrender the unused cheque leaves. The account is debited for amount closing charge (230 taka) etc. An authorized officer of Southeast bank Limited destroy unused cheque leave. In case of the joint account, the application for closing the account should be signed by all join holders. A banker can also close the account of his customer or stop the operation of the account under following considerable circumstances:  Death of customer. Customer’s insanity and insolvency.  Order of the court(Garnishee order)  Specific charge for fraud forgery.  Stop payment of cheque.  A banker can stop payment of cheque of his customer under following considerable circumstances  Firstly the account holder will apply to stop the payment of his cheque  There is a register for this purpose. It is kept by the authorized officer.  The officer will see the condition of account and verify everything Page-32

 In the ledger book, the officer will marked with red ink and the cheque will not be paid.  Collecting Bank’s discharge irregular/required.  If the cheque is dishonored due to insufficiency of funds SEBL inform the a/c holder immediately.

4.2.2 Cash Section: Cash section is very important for bank because here the cash transaction is made. Cash sections demonstrate liquidity strength of a bank. There various systems are maintained by a cash officer in Southeast Bank, Upashahar Branch. There are four employees in cash section southeast Bank Limited at Upashahar i Branch. Those various systems: Vault: The cash department is the riskiest department of any bank. This is the section tight security is required to avoid any accident. There is limit to amount of cash that each counter carries. Carrying of excess cash is avoided for safety reason. If there is any surplus in cash then the excess amount is sent to the Bangladesh Bank. Or if there is any shortage of cash in the cash section then the shortage amount is borrowed from Bangladesh Bank or Head office of SEBL or other bank.  Cash Receipt: When client deposited in the bank, the bank officer follow the following common precaution.  Check and count the received cash  Make sure that the amount in word and numbers in the deposit slip are same.  Check account title and account number  Both deposit slip is in order  Depositor’s signature is in slip

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 Write the domination of the currency at the back of the pay in slip or the credit voucher in the receiving cash officer book  At least send the pay in slip.  Deposit slip must be signed by respective officer  Carbon copy of the deposit slip must handover to the client with proper seal and signature  Cash Payment: Cheques, demand drafts, pay order, pay slip and debit cash vouchers etc are received from various departments for payment of cash to the customers or payee in Southeast Bank Limited. Period payment of cash it is the officer’s duty to make sure that the cheque or the instrument has been genuinely passed. The following common precaution is thoroughly practiced before honoring a cheque  Branch name in the cheque  The date in the cheque are asked to present after the date are given  Taka in word and figure of cheque is same  Balance in the account is available  The specimen card signature and signature should match  Signature of recipient is obtained on the reverse of cheque. In case, where a prior arrangement has been made with the bank, a client may overdraw. Books maintained by cash department: Book at the southeast bank means register. Southeast Bank Limited maintained some register .Those registers are vault register, cash receives register, cash payment register, cash position register. In vault register maintain amount of cash available at Upashahr Branch in SEBL .Then keeps record of all incoming cash in cash receive register. Whether in cash Payment registers keep record of all out going cash. Then finally keeps record of balance that is available notes and coins in cash position register.

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Other Registers:  Money Remittance Register  Prize Bond Register  Stamp in hand Register Automatic Machine in cash section: Cash section of southeast bank has two automatic machines. one is money counting machine another one is money detector machine .with the help of money counting machine officer can easily count the money and find out the fake money by money detector machine .

4.2.3 Clearing Section: This section receives all kinds of cheque in favor of the client for clearing on the part of their banking services. After receiving cheque it is necessary to endorse it and cross it specially. There are four types of cheque for clearing: 1) Inward clearing cheque. 2) Outward clearing cheque. 3) Inward bills for collection. 4) Outward bills for collection. Inward clearing cheque: It refers the instruments drawn on Southeast bank received by other banks in the clearing house from the representative of other bank. Outward bills for collection: When our branch sends Cheques to other branch of Southeast bank is called OBC. Accounting treatment of this process: Southeast general (Sender’s Branch) Dr. Depositor’s A/C Cr.

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Inward bills for collection (lBC): There are two types of clearing; firstly cheque collects from the other branch of Southeast bank These Cheques are settled by sending to the debiting depositors account and crediting sender’s branch account. Secondly cheque collects from another bank outside the clearing house. These cheque are settled debiting depositors account and sending DD or TT in favor of senders bank. Outward Clearing Cheque (OCC): Cheque drawn of another branch of Southeast bank is called Outward Clearing Cheque. These types of cheque are directly sent to the respective branch and request them to send IBCA.

4.2.4 Accounts Section: Account department is called the nerve center of the bank. In banking business, transaction is done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositor’s money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. Improper recording of transaction will lead to mismatch in the debit and the credit side. to avoid the mishaps bank provide separate department whose function is to check mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called account department. This department of southeast bank limited has to prepare some internal statement as well some statutory statements which to be submitted to Bangladesh Bank. Account department of southeast bank limited prepare this statement and has to submit some statement to head office which is consolidated by the head office. DAILY TASK of Upashahar branch in SEBL:  The routine daily tasks of the account department are as follows:  Record the transaction in the cashbook  Recording the transaction in general and subsidiary ledger  Preparing the daily position of branch comparing of deposit and cash Page-36

 Preparing the daily statement of affairs showing all assets and liabilities of SMR Branch in SEBL as general and subsidiary ledger respectively  Making payment of all expense of the Branch  Recording enter branch fund transfer and provide accounting treatment in this regard  Checking whether all vouchers are correctly passed to ensure the conformity with the activity report. If making it correct by rectified by concern officer  Recording of the vouchers in voucher register  Packing of correct vouchers according to the debit voucher and credit voucher Periodic task:  Preparing the monthly salary statement for the employees  Policing the basic data of the branch  Preparing weekly position for the branch which sent to the head office to maintain Cash Reverse Requirement  Preparing monthly position for the branch which sent to the head office to maintain Statutory Liquidity Requirement  Preparing weekly position for the branch comparing of back up of sector wise deposit, credit etc  Preparing weekly position for the branch comparing of denomination win se statement of cash till  Preparing the budget for the branch by fixing the target regarding profit and deposit  Preparing an extract which is summary of all the transaction of head office account with the with branch to reconcile all transaction held all account of all the branches

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CHAPTER 5: Human Resource Management Performance 5. 1 Introduction Human resource management involves all management decisions and practices that directly affect or influence the people or human resources, who work for the organization. In recent years, increased attention has been devoted to how organizations manage Human Resources. This increased attention comes from the organizations that an organization’s employees enable an organization to achieve its goals and the management of these human resources is critical to an organization’s success. Byers & Rue: “HRM is the function facilitating the most effective use of people to achieve both organizational and individual goals” Storey J: “Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques”

5.2 Importance of Human Resource Management Today, professionals in the human resources area are important elements in the success of any organization. Their jobs require a new level of sophistication that is unprecedented in human resources management. Not surprisingly, their status in the organization has also been elevated. Even the name has changed. Although the terms personal and human resources management are frequently used interchangeably, it is important to note that the two connote quite different aspects. Once a single individual heading the personal function, today the human resource department head may be a vice president sitting on executive boards and participating in the development of the overall organizational strategy.

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5.3 Functions of Human Resource Management in Southeast Bank Limited Human resource management is a process consisting of these functions:  Job Analysis  Human Resource Planning  Recruitment and Selection  Training and Development  Performance Appraisal  Promotion and Transfer Policy  Compensation Policy  Employee Relation Management  Health and Safely Policy

5.4 Job Analysis The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. The process of job analysis is of two types:  Job Description  Job Specification 5.4.1 Job Description A list of a job’s duties, responsibilities, reporting relationship, working conditions, and supervisory responsibilities- one product of a job analysis. 5.4.2 Job Specification A list of a job’s “human requirement”, that is, requisite education, skills, personality, and so on another product of a job analysis.

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5.5 Human Resource Planning Job description of Southeast Bank Limited: 5.5.1 Position: Group Company Secretary Job Grade: Senior Vice President (SVP)/Executive Vice President (EVP)/Senior Executive Vice President (SEVP) Age: Maximum 58 years Responsibilities:  Convening and organizing Annual General Meetings (AGMs), Extraordinary General Meeting (EGMs), meetings of the Board of Directors and its Committees and providing support.  Providing legal/financial advice during and outside of meetings.  Preparation of Memorandum of Association (MoA) and Articles of Association (AoA) and include changes as per EGM and submit to registrar of Joint Stock Companies and Firms (RJSC) and collect the certified copy from them.  Overall supervision of share department, dividend calculation, TDS on dividend calculation and dividend accounts maintenance, offloading of shares as per direct listing regulations.  Liaison with various donor agencies, banks, auditors, local authorities’, shareholders etc and internal division Qualification and other competencies:  ACA / Certified Chartered Secretary/ LLB/ Master’s in law or Business discipline with no third division/class. Professional(s) qualified from institute of Chartered Secretaries preferred.  20 years working experience as a Company Secretary in a reputed public limited company.

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5.5.2 Position: Branch Manager Job Grade: First Assistant Vice President (FAVP)/ Assistant Vice President (AVP)/ Senior Assistant Vice President (SAVP)/Vice President (VP)/ Senior Vice President (SVP) Age: Maximum 52 years Responsibilities:  Strengthening existing customer relationship to grow branch business while ensuring compliance.  Providing high quality of customer service  Establishing sales goals and activities to book new customer  Ensure effective process and controls for preventing money laundering in line with the regulatory requirements. Qualification and other competencies:  Post graduate / MBA from reputed local or foreign universities.  Profound knowledge of banks/financial institutes and Bangladesh Bank compliance issues  5-20 years experience in reputed banks/financial institutions with minimum 5-7 years as Branch Manager, depending on job grade.  Strong leadership skills and aptitude to foster a cooperative working environment. 5.5.3 Department: Anti-Money Laundering Department (AMLD) Job Grade: Senior Officer (SO)/Junior Assistant Vice President (JAVP)/First Assistant Vice President (FAVP)/ Assistant Vice President (AVP) Age: Maximum 35 years Responsibilities:  Take initiatives to improve AML compliance status  Ensure Anti-Money Laundering (AML) compliance of the branches as Bangladesh Financial Intelligence Unit (BFIU) guidelines.  Monitor the transaction mode and KYC of the customers to identify unusual activities

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 Arrange AML training / workshop / conference for the employees.  Make correspondence with branches regarding mitigation of lapses detected by BFIU and CHO team.  Take necessary steps to submit compliance report to BFIU on the inspection reports submitted by them.  Arrange AML training /workshop/conference for the employees. Qualification and other competencies:  Post graduate / MBA from reputed local or foreign universities having no third class in any examination.  Knowledge about AML standard procedures, practices and transaction monitoring.  Through knowledge on regulatory requirement and BFIU Compliance issues.  3 years of banking experience for SO, 4 years of experience for JAVP and 7 years of experience for AVP in the related field. 5.5.4 Department: SEBL Training Institute (SEBLTI) Job Title: Principle Age: Maximum 55 years Responsibilities:  Conduct Training Needs Assessment (TNA) of the Bank  Plan, organize and conduct training courses on an on-going basis  Develop training feedback system  Coordination with outsource institutions for conducting their program at SEBL  Organize training/seminar/conference events with different corporate bodies, Financial Institution. Qualification and other competencies:  MBA/Master’s Degree from any reputed University.  10 years of banking experience with minimum 5 years in the related field.  Excellent knowledge in regulatory requirement and Banking product  Strong leadership skill and capability to handle complex situations.  Multi-tasking with strong communication and presentation skills.

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5.6 Recruitment and Selection: Recruitment When a vacancy occurs and the recruiters receive authorization to fill it, the next step is a careful examination of the job and an enumeration of the skills, abilities, and experience needed to perform the job successfully. The Recruitment Process of the Organization: Organization Vacant or new position occur Perform job analysis & plan recruiting effort Generate applicant pool via internal or external recruitment methods Evaluate applicant via Selection Process

Impress applicants Make Offer

5.7 Training and Development Training and development consists of three materials, they are:  Orientation  Training

 Development

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CHAPTER 6: Responsibilities Performed during Internship I did my three months internship program in Southeast Bank Ltd., Upashahar Branch. I got the opportunity to work in different department of the branch. I found myself very fortunate and blessed for being able to associate with one of the renowned banks in Bangladesh. Throughout my internship program, although I was assigned under H.M Habibur Rahman Chowdhury, Senior Assistant Vice President & Head of Branch, I worked in customer service with Manoranjan Pal, Senior Executive Officer & Manager Operation. It was a very pleasant and educative experience for me. I learned many new things about corporate life. Above all, I have learned how to perform a task responsively on time. This practical experience is crucial for the progress and preparation for oneself before entering into corporate world. I believe every student should have this experience before entering into corporate life.

6.1 Responsibilities Performed During Internship The report has been prepared on the basis of experience gathered during the period of internship. Within this period, I mainly worked with department namely General Banking, Accounts department. I also work with Foreign Exchange Department for a really short time. Southeast Bank does not follow any specific guideline for the internship students. Upashahar Branch has to do a lot of work and is really very busy all the time. They have huge pressures compared to other branch. The Branch treated me as one of their employees not just an intern. So, I had to do a lot of work.

6.2 Customer Service Department In this department, I started my work learning how to open a Bank account, how to fill up the customer’s bank account opening forms. My immediate supervisor tried to give me a brief description of his regular tasks before assigning me to any kind of activities. Later on through my personal observation and guidance of the superior officer, I came to know about different types of account like current account (C/A), savings account (SA), STD, FDR etc. He also assisted me on how to answer clients versatile questions regarding different account opening, what amount of interest they will get from Page-44

different types of account, how to locate desired cheque books form the bundle according to customers requirement, how to receive phone calls and transfer them to other employee, how to keep patience and deal with the busy customers.

6.3 Activities Done By Me  I usually give the information to the customers about their desired accounts. If they wanted to open a savings account I told them that they have to give 2 copies of their Passport size photographs and 1 copy Passport size photograph of the nominee. They are also required to submit the photocopy of their utility and a photocopy of their passport/national ID card. If they submit their tin number Government will take 10% of their savings amount but if they do not have tin Government will take 15% of their savings amount.  I used to update the customer’s account opening form.  I gave product related information to the clients.  I made phone calls to the customers if they did not submit all require documents.  I used to do cheque book and ATM card entries on register books and keep those books at a safe place.  I worked in cash for 2 days where I received clearing cheque and separate deposit slip from the cheque.  I distributed cheque books by asking them their name, account number and made them sign on register books and then their sign verified by an officer.  I made phone calls to the customers who did not collect their cheque book or ATM card after passing 3 or 4 months.  I put everyday courier to the savings account and also other require documents which I got after opened an account.  Sometimes I checked voucher of other officers.  I used to do incoming mail entries in the incoming mail register.  I sometimes used to scan and print documents needed by officers.

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6.4 Observations Throughout my internship program, I have observed some aspects of this branch. Those are given below:  Employees of Southeast Bank Limited were very much co-operative and friendly. They have extreme level of patience. They were always giving me a proper instruction before assigning me any kind of work.  Employees there always try their best to help their customer.  The authority of Southeast Bank Limited is exceptionally strict about punctuality.  Branch Manager held a meeting on first working day of a week and on that day women employees has to wear saree.  The FVP and HOB has a good communication skill. He knows how to hold their esteemed customer.  They also maintain the festive culture on every occasion. Despite all the positive responses I have also come across some negative issues. Those are given below:  Lack of manpower: Since the main branch is one of the oldest branches, the workload of the branch is very high compared to other branches of Southeast Bank Ltd. But they do of have enough workforces to manage the work pressures. If one employee is absent or on a leave, another employee from same department has to look after the responsibilities of two people. This can cause lack of motivation.  Lack of dynamic and prompt customer service: Since number of new banks is increasing and they are introducing a very competitive customer service. Nowadays people have very little time to waste and want fastest and unique services in short time. But there are only two employees handling the overall customer service department. So, sometimes they do not get the time to satisfy all the customers and customers have to wait a long time and lost their patience.

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 Shortage of availability of machineries: The branch needs more printers and photocopy machines. Employee’s activities are hampered most of the time for maintaining serial as well as it creates gathering on their short space.  Lack of effective advertising and promotion: Advertising and promotion is one of the weak points of Southeast Bank Limited. They do not have any promotional activities.  Congested office area: Due to congested area, most of the customers do not get seats on the pick hours.  Unsatisfactory software performance: Southeast Bank Ltd. uses stellar software to perform their tasks. But sometimes the server becomes very slow and the software does not work properly. If customers come or call to know their balance amount on that time, the employees cannot give them the information. After finishing my internship from this bank, I have realized that the problems mentioned above can create obstacles for future prospect. Therefore, the management should be little more careful about their employees. To solve above problems Southeast Bank Ltd., Upashahar Branch can do some of the following things.  Allocate two employees for same position or for same task.  Hire more employees for customer service.  Arrange more seats for their customers.  Give one small printer to each employee which will be connected with their pc.  Make a Face book page where customer gets information about their product and activity. As a BBA student I learned many things from BBA program, gained a variety of knowledge through the class lectures, text books, assignments, presentations, viva, exam etc. while conducting my internship at Southeast Bank Ltd, this knowledge was very helpful which I practically applied.

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6.5.1 Banking & Insurance I learned about various types of account; such as savings deposit account; fixed deposit account; current deposit account etc. when I joined in internship and worked in Account Opening section; I gained knowledge about various negotiable instruments, but practically saw those instruments in the bank. 6.5.2 Marketing I have learned from this subject that the financial success often depends on marketing ability. During my internship, I was able to identify who are seller, buyer, customer, consumer, user etc. I was introduced with those in marketing subject. 6.5.3 Accounting From these courses I came to know about the accounting system of an organization like Bank. I have learned how to make trial balance, income statement, balance sheet, cash flow statement. In Bank, there were many statements which I learned in academic courses. 6.5.4 Principles of Management In my BBA program, the “Principles of Management” is the most effective subject. There are many parts of management- planning, organizing, leading, controlling, motivating, employment. I have achieved more knowledge about management. I am successful in my internship program by applying theoretical knowledge of above stated parts. Hence, the knowledge will play important role in my career, family & social life. 6.5.5 Organizational Behavior This subject is very important and effective subject in my BBA program. It is very essential to learn about professional behavior. I have maintained good behavior with my colleagues, client’s authorities during my internship program. 6.5.6 Business Research This is the course which helped me most in preparing my report. Through this course, I was able to know how to collect and perform the analysis of data. It helped me to prepare a report in a comprehensive way. It helped to realize the importance of giving a

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proper reference in a report through bibliography. It made me aware about the purpose of the report. 6.5.7 Business Communication Business Communication is one of the most essential courses. From this subject I learned how to compose different types of letter and how to prepare a standard CV. I got special benefit in my internship program by applying the theoretical knowledge of Business Communication which is why the CV and cover letter is the excellent example of the application. Last but not the least, since "Finance and Banking" was my major subject and I completed my internship in a financial institution- Bank, it was quiet easy for me to understand between the theoretical and practical differences. I have learned how financial transactions are dealt, I have learned about different types of accounts, loans, how e-banking are conducted, and what could be the goal of a financial institution. I have learned all of this while studying BBA. Although all of these courses are important for practical working experience, it is true that academic knowledge is not fully used in practical working, but I think all of the subjects of BBA program are linked with each other. So, it is sometimes hard to find any deviation of academic knowledge with practical working experience.

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CHAPTER 7: Findings, Recommendations & Conclusion 7.1 Findings of the Study While preparing the report and analyzing the data, I have identified some major findings. I have only worked at Upashahar Branch of Southeast Bank Limited. Therefore, if the practices and corporate culture of Southeast Bank as a whole is believed to be the same as the Upashahar Branch, then the followings are the findings of my report:  There is a visible shortage in work force of General Banking department. Consequently, the workload is extremely high compared to other branches. This also leads to accumulation of work that the employees must complete within the deadline.  Southeast Bank Limited provides wide ranging facilities to its employees to develop their skills and knowledge about the entire banking system. However, with the existing workforce shortage, an employee is sent to training without any replacement. This increases the work pressures for other employees and lads to customer disappointment due to delay of work.  The internet facility of Southeast Bank is extremely poor. Recently this is a major issue because it is mandatory by Bangladesh Bank IMP and L/C information online as soon as they are issued. Due to slow internet connections, it becomes difficult for the employees to input the information online. This also adds to customer dissatisfaction because if the information is not entered into online monitoring system of Bangladesh Bank then the customers can not release or ship goods.  Sometimes due to poor internet server, employees cannot tell the customers their required amount of balance in their account. This also leads to customer dissatisfaction  The employees of most departments are not satisfied with the management regarding the amount of work they have to do. Moreover they have to put up with a lot of difficulty to apply for the annual leave (LFA) even though they apply for the leave on due time.  The employees are dissatisfied with some of the action taken by the management. For instance, an employee is transferred from the credit department to another Page-50

within the branch. The transfer takes place within the span of one to two days, which is very short time for the credit department employee to train his/her replacement.  There is lack of promotional strategies undertaken by Southeast Bank Limited. This causes substantial unfamiliarity of the bank among the rural people. It may hinder its long term strategies in terms of reaching large number of customers.

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7.2 Recommendations Here in this part, I came up with the following recommendations which Southeast Bank Limited can move forward towards progress:  Frequent market research: The management of Southeast Bank Limited can regularly administer research activities every three months through structured questionnaire or through personal interview, in order to keep regular track of satisfaction levels. Regular research may also be conducted to find out customer satisfaction about various service aspects.  Establishment of more ATM booths: Sufficient number of ATM booth might be established in different location to reach out he customers even further and satisfying their demand.  Improved Customer service: Improvement in customer service is very much essential. To compete with other banks, customer service should be improved as online service, internet service, 24 hrs customer service etc. New technologies should be taken for effective services.  Handle complaints effectively: BA may give greater importance to manage the complaints of various customers and to encourage customers to give feedback about the services.  Improvement of online banking: Many major problems lied within the online service are preventing BA form getting more positive response from its customers. Thus, BA IT division still has several areas having some scopes for further improvement.  Recruitment of more employees: I have found that bank should increase their number of employees. Sometimes employees cannot give proper attention to their clients because of increasing work pressures. Bank can recruit more employees and divide their work equally.  Pursue an attractive advertisement campaign: BA should focuses on advertising campaigns in order to build up a strong image and reputation among potential customers. TV adds maybe aired to reach a wider array of customers.

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 Training program: Bank can arrange different training program on different banking rule and regulations set by Bangladesh Bank which will optimize the efficiency of employees.  Bigger office space: The bank authority should rent bigger office space in order to reduce the storage problem if required.

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7.3 Conclusion The roles of financial institutions have become exceedingly crucial with the increase in the economic development in Bangladesh. Southeast Bank Limited is the third generation bank that is also contributes to the socioeconomic development of the country. Although Southeast Bank Limited has some issues that are needed to be resolved, nevertheless it is progressing and has a greater prospect to develop further ones the problems are resolved. Internship program is very important for every business student as we only have acquired theoretical knowledge. This program gives us the prospect to have the practical knowledge so that we can relate the theories to the reality. I am fortunate enough to complete my internship program at Southeast Bank Limited, Upashahar Branch. Moreover, I got the chance to work in the General Banking department as well as in Foreign Trade department for some time. Although the internship period is very short to acquire in-depth knowledge, yet it gave me the taste of commercial world. Southeast Bank Limited is working tremendously to become one of the pioneers in banking. The management is well organized and about time the bank achieves the goals. However, the bank must launch advanced technologies and software to provide fastest service to its customers. If they can ensure their customers about the service quality, it will give them the opportunity to draw new and bigger clients.

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References Books  Reza, S.M., & Rabbani, G.M. (2014), Research Methodology, Dhaka, Grantha Kutir  Varshhney, P.N. (2001). Banking Law And Practice, Revised Edition, Sultan Chad & Sons.  Ali, S.A, & Howlader, R.A(2000), Banking Law And Practice, Revised Edition, Mowla Brothers  Khan. Dr. A R. (2008) Bank Management-A Fund Emphasis,1st Edition, Dhaka, Bangladesh  Malhotra K. Naresh, Dash Satyabhusan (2010), Marketing Research, Exploratory Research, Design: Primary And Secondary Data, 16th Edition  Lawrence J. Gitman (2009) Principles of Managerial Finance, Financial Statements and Analysis, 12th Edition

Websites  http://www.bankasia-bd.com/  http://www.bankasia-bd.com/annual_reports/Bank

Asia

Annual

Report

2015.pdf  http://www.bankasia-bd.com/annual_reports/Bank Asia Sustainability Report 2014.pdf  http://www.bankasiabd.com/annual_reports/Bank_Asia_Annual_Report_2013.pdf  http://www.thedailystar.net/xpress-money-teams-up-with-bank-asia-9306  http://www.thefinancialexpress-bd.com/2016/05/11/29828/Bank-Asiareceives-BB-appreciation

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Appendix SEBL-

Southeast Bank Limited

FVP-

First Vice president

EO-

Executive Officer

MOB – Manager Operation of Branch BA-

Bank Asia

PO-

Pay of Order

SME-

Small Medium Enterprise

ATM-

Automated Teller Machine

KYC-

Know your customer

DB-

Double benefit

MB-

Monthly benefit

TIN-

TAX identification number

VAT-

Value Added tax

FOB-

Free on board

BACH- Bangladesh Automated Clearing house HOB-

Head of Branch

MICR-

Magnetic Ink character recognition

GL-

General Ledger

GB-

General Banking

LFA-

Leave fare assistance

BB-

Bangladesh Bank

TP-

Transaction Profile

FCAD-

Financial control and Accounts department

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