Prepared For

SAVP& Head of BranchPrime Bank Ltd.Bashundhara BranchBashundhara, Dhaka

Prepared By

Abu Taher Mohammad RubelAsian University of Bangladesh

Program : BBA, 20th BatchMajor in Finance

ID NO:200410086Dhanmondi Campus

Dhanmondi, Dhaka-1207

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July 2008

The SAVPHead of BranchPrime Bank Ltd.Bashundhara BranchBashundhara, Dhaka

Subject: Submission of Internship Report

Sir,

I am pleased to submit the Report as a partial fulfillment of BBA program. I

tried my best to present this report on “General Services of Prime Bank Ltd.”. I tried my best to work sincerely to cover all aspects regarding the

matter. Though I have some limitations to prepare the report due to scarcity

of organized data, enough time and knowledge about banking sector, I have

thoroughly enjoyed in preparing this report which has contributed

significantly to our understanding on the essentials and importance practical

knowledge.

However, if you need any clarification, suggestions, directions for further

improvement of the report, I shall be obligate to provide with further

explanation. I sincerely hope that you will appreciate my effort.

Sincerely yours,

(Abu Taher Mohammad Rubel)

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Acknowledgment

At the inception of preparing this report, I would like to express gratitude to the Almighty Allah for special blessings in completing it. There is an English proverb “Two heads are better than one.” So, no one can obtain a noble objective alone. This internship report is an accumulation of many people’s endeavor. For this, I am indebted to a number of people who helped me to prepare this and for their kind advices, suggestions, directions, and cooperation and proper guidelines for this.

First of all, I would like to thanks to our honorable Teacher Prof: Md. Ashraf Hossain, Head of Business Administration, Asian University of Bangladesh. for giving me such exposure to the practical business world.

My heartfelt thanks go to Md. Amzad Hossain, Senior Assistant Vice President & Head of Branch, Prime Bank Limited, Bashundhara Branch. He has instructed supervised me very much cordially. I also thank all employees of this Branch especially Md. Ershad Kamal, manager operation of the Branch, who always helped me to perform my tasks properly. I have been placed in Basundhara Branch for whole time and supervise me regularly to perform the General Banking Activities and give me information and suggestions to prepare this report.

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Table of Content Particulars

Page No.

Executive Summary 6Chapter I: Introduction to the Report

1.1. Origin of the Report 81.2. Rationality 81.3. Objectives 91.4. Duration 91.5. Area of Operation 101.6. Methodology 101.7. Limitations 11

Chapter II: History of Prime Bank Ltd 13-14

Chapter III: General Banking Services of Prime Bank Limited3.1 Introduction 163.2 Different Department of GB 163.3 Different types of customer/Account holder 163.4 A/C Opening & Dispatch Department 173.5 Requirements/Necessary formalities for opening each type

: Of A/c. 19 3.6 Eligibility to open an A/c 21 3.7 Accounts Opening of Customer with the Bank 21 3.8 Issuing of a Cheque 23 3.9 Clearing Section 27

3.10 Collection Section 283.11 Accounts Section 293.12 Cash Section 313.13 Conclusion 32

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Chapter IV: Other Banking services 4.1 Online Branch Banking 34-35 4.2 Master Card 36-37 4.3 SWIFT 37 4.4 Deposit Schemes of Prime Bank 38-45

Chapter V: Bank Rating

CAMEL Rating of 48 Banks 47

Chapter VI: Recommendation, conclusion and Bibliography Recommendation 51 Conclusion 52 Bibliography 54

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Executive Summary

The report covers the three months internship program as the BBA requirements. From 16 April 2008 to 15 July 2008, I have worked with the Department of General Banking Services of Prime Bank Ltd. at Bashundhara Branch. The objective of the project is to analyze the Overall Banking Services and General Banking Services offered by Prime Bank Ltd.

Yes, Prime Bank Ltd. a bank with a difference is a fast growing private commercial bank which is primarily drive by creating opportunities and pursuing market niches not traditionally met by conventional banks. General banking services are the core activities of the bank and I have prepared this report based on this department. So this part is the main part of this report. The services of Prime Bank Ltd. have already been established through out Bangladesh.

I have prepared this report with Six chapters. All chapters include about Prime Bank Ltd. In chapter one, I have introduced the report such as origin,

rationality, objective, duration, and area of operation, Methodology of the study

and limitations of the report.. Then in chapter Two, I have discussed the history of Prime Bank Ltd.

In chapter three, I have highlighted the main part of this report that is general banking services offered by prime bank ltd. Here I have discussed procedure of opening an account, types of product/account, procedures of transferring money such as demand draft (DD), telegraphic transfer (TT), pay order (PO), collection section and finally clearing section of Prime Bank Ltd.

In chapter Four, I have Showed other Banking Services of Prime Bank Ltd. Here I have discus Online Branch Banking, types of product/account.

In chapter Five, I have also showed the Bank Ratingfinally in chapter Six I conclude the report with Recommendation, Conclusion& Bibliography.

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Introduction to the Report

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1.1. Origin of the report:

Basically, this report is based on practical working experience gathered from an exclusively intensive internship program at PBL Bashundhara Branch. Unlike university arranges internship program for their students after the completion of theoretical courses (i.e. after final semester) of the program of Bachelor of Business Administration (BBA). Each intern must be assigned with a specific project that is assigned by the concerned organization and for most the internship co coordinator of their university must approve the project. In this particular report, we the internee of the previously mentioned program and our concerned organization is Prime Bank Limited. This bank is one of the prominent private and

Hence I placed in the Prime Bank Limited, Bashundhara Branch from April, 2008 to July, 2008.

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1.2. Rationality:

Internship program is the practical aspect of our theoretical learning. It makes a bridge between the gap of classroom learning and practical learning. In this view, Internship plays a pivotal role for each professional degree like BBA. The study will help formulate suitable policies taking into consideration different ideas, suggestions and feelings of the customers and bankers. Further more, it may noted that Prime Bank executives who are really executing the policies undertaken by the top management will have a chance to communicate their interaction and provide necessary feedback.

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1.3 OBJECTIVE OF THE STUDY

The objective of the study is to gather practical knowledge regarding banking system and its operations. A theoretical class of BBA provides theories regarding different subject whereas practical orientation gives us the chance to view those systems and their operations. More precisely we can identify the objectives of this report as follows:

► To earn practical experience and knowledge about the banking operations and corporate functions performed by a commercial bank like Prime Bank Ltd.

► To determine the most common obstacles those are facing by the clients of PBL and their probable solutions/ indications.

► To observe the working environment in commercial banks like PBL► To observe the various investment indicators of PBL. ► To examine the rules and regulations of PBL.► To identify the problem, if anybody faced by the officials

dealing in banking business and to examine their view to solve them.

► To gather comprehensive knowledge on overall banking functions of PBL.

► To acquire practical knowledge about the overall activities of PBL.

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1.4. Duration:

The duration of the study was a very short span of time. It was three month long internship program (April2008 to July 2008). It was very much hard to complete a report as well as assigned tasks by the Bank. So I had to complete this study facing very much time presser.

1.5. Area of Operation:

This report covers only General Banking Services, activities and procedures of Prime Bank Limited. Especially this report emphasizes on the comparison of different bank interest rate and deposit schemes, in a word financial products. It considers only one Branch from all well known private Banks.

1.6 Methodology:

METHODOLOGY OF THE STUDY

The Methodology of the study can be discussed under the following major heads.

Data sources:The data sources used to prepare this report delineated as follows:

A) Primary sources- Primary sources data collecting from

Face to face conversation with officers and staffs. Face to face conversation with clients

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B) Secondary sources- The secondary sources of data collecting from the following sources:-

Different textbooks & materials Different manuals & circulars of Prime Bank Ltd. Website of Prime Bank Ltd Reports submitted by several internship students

1.6.1. LIMITATIONS OF THE STUDY

The present study was not out of limitations. From the beginning to end, the study has been completed sincerely and truthful. But some problem arises from conducting in the study. During the study it was not possible to visit the whole area covered by the banks although the financial statements and other information regarding the study have been covered. Some limitation are given stated below- @ The main constraint of the study is insufficiency of information,

which was required for the study. There are various information the bank employee can't provide due to security and other corporate obligations.

@ Due to time limitations many of the aspects could not be discussed in the present report.

@ Every organization has their own secrecy that is not revealed to others. While collecting data through interviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization.

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History of Prime Bank Ltd

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Accordingly, Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc

As a fully licensed commercial bank, Prime Bank Ltd. is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software

The bank has consistently turned over good returns on Assets and Capital. During the year 2007, the bank has posted an operating profit of Tk. 3257 million and its capital funds stood at Tk 6382 million. Out of this, Tk. 2275 million consists of paid up capital by shareholders and Tk. 2659.21 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 11.50% is in the market. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.35%.

Prime Bank Ltd., since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, our strategy is to serve the customers through capacity building across multi delivery channels. Our past performance gives an indication of our strength. We are better

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placed and poised to take our customers through fast changing times and enable them compete more effectively in the market they operate

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3.1. Introduction:

When I decided to perform as an intern and selected by PBL, I had been placed in the General Banking Department for whole time of my internee. Several activities are performed here. I have prepared this report based on this department. So this is the core part of this report.

3.2 Different Departments Of General Banking

It has five major parts in the branch to perform. The sections are:

i. Account opening sectionii. Cheque clearing

iii. Cashiv. Remittancev. Accounts section

3.3 Different Types Of Customers/ Account Holder:Any one can open an account in Prime Bank Ltd. if he is capable of entering

a valid contract and a banker is satisfied his confide and willing to inter into

the necessary business relation with him. So any one of the following types

of customers can open account:-

i. Individual ( personal )ii. Joint

iii. Proprietorship ( sole traders / registered or unregistered )iv. Joint stock companies ( private/ public ltd. companies)

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3.4 Account Opening and Dispatch Department:

Account opening is the gateway to the bank. The relationship between a banker and its customer begins with the opening of an account by the customer. For this, account opening is considered the most important function of a commercial bank. All banks generally maintain a separate department to open accounts.

The function of accounts opening department can be classified into the following three categories:

1. Supplying various accounts related information to the customers.

2. Opening of account and3. Issuing cheque books.

1. Supplying various accounts related information to the customers:When a customer comes to open an account with a bank, s/he needs to be informed about various information relating to account opening. Account opening department enthusiastically provides necessary information to the customer.

Following information is supplied to the customer depending on their requirements:

Type of accounts maintained by the bank

Requirements/Necessary formalities for opening each type of accounts

Eligibility to open an account etc.

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Types of accounts maintained by PBL

Accounts based on operations as under: Current Account (CD A/C)

Short Term Deposit Account (STD A/C)

Savings Bank Account (SB A/C)

Fixed Deposit Receipt Account (FDR A/C)

Accounts based on Nature of Customers as under: Single/Individual Account

Joint individual Account

Sole Trader/ Proprietorship Account

Partnership Account

Company Account etc.

Savings accounts are opened for single/individual and joint individual customer. Business organizations/enterprises are not allowed to open savings account.

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3.5 Requirements/Necessary formalities for opening each type of accounts:

Single/Individual Savings Bank Accounts:

Introduction of customer (Must be either by an account holder (SB/CD A/C) or an employee of the bank.

Photographs-Two copies (attested by the Introducer) Photocopy of valid passport/Citizenship Certificate from Chairman or

Ward commissioner/Certificate from the employee of the bank.

Add: Transaction Profile Signature on Money laundering Circular

Joint Individual Account:

No additional requirements/formalities other than the Single/Individual Savings Bank Accounts.

Single Individual/Joint Individual CD A/C

Requirements/Formalities as like as SB A/C, except here introducer must be a CD A/C holder of the bank.

Proprietorship CD A/C

Introduction of the customer (Must be by a CD A/C account holder or an employee of the bank.

Photographs- (Two Copies) of the proprietor. Valid Trade License. Company Seal. Photocopy of valid passport of the proprietor/Citizenship/

Certificate from Chairman or Ward commissioner/Certificate from the employee of the bank.

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Add: Transaction Profile Signature on Money laundering Circular Signature on KYC form

Partnership CD A/C

Introduction of the partners (Must be by a CD A/C account holder or an employee of the bank.

Photographs- (Two Copies) of every partner. Valid Trade License. Seal. Date of incorporation. Photocopy of valid passport of the proprietor/Citizenship

Certificate or Identity Certificate from Chairman or Ward commissioner/Certificate from the employee of the bank.

Partnership Letter.

Add: Transaction Profile Each partner’s Signature on Money laundering Circular Each partner’s Signature on KYC form

Limited Company A/C

Introduction (Must be by a CD A/C account holder or an employee of the bank

Photographs- (Two Copies) Valid Trade License Company Seal Resolution of the Company on company’s letterhead Certified and attested copy (attested by MD or Chairman) of

Memorandum of Association and Articles of Association Certified and attested copy of Certificate of incorporation List of Directors Photocopy of valid passport/Citizenship Certificate or Identity

Certificate from Chairman or Ward commissioner/Certificate from the employee of the bank.

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Add: Annexure E: Identification of Directors and Authorized Signatories

Annexure D: Director’s Signature on KYC form

Transaction Profile

3.6 Eligibility to open an account:Anyone capable of entering into a valid contract can open an account with the bank. A minor can also open an account under guardianship or alone if s/he is at least 12 years old. But a minor is not allowed to open a current account.

Lunatic, Insolvent person/Drunker/Liquidator/Any other individual or organization by law cannot open an account with bank.

3.7 Accounts Opening of Customers with the Bank

Opening of an account involves certain formalities, which varies according to different types of accounts as well as various categories of customers. The bank supplies following printed forms during opening an account of a customer:

o Account opening Form

o Specimen Signature Card

o Deposit Slip

o Cheque Book Requisition Slip

o KYC Profile Form

o Transaction Profile Form

Customers are requested to read all the instructions carefully and then fill up the forms properly. Account opening officer must have to check all the forms or documents i.e. whether the customer duly signs them where necessary. As well as introducer must introduce the customer by putting signature in the space provided on the account opening form.After completion of all the formalities by the customer, Prime bank officials have to perform the following functions chronologically:

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Scrutinizing account opening form and Specimen signature card

Getting the approval of accounts by authorized officer

Putting entry in the account opening register

Posting all the account information in the computer

Issuing a cheque book

Maintaining all relevant papers/documents in separate file in the name of the every account holder

Sending the specimen signature card to the cash department

Sending a thanks giving letter to the New account opener’s address

Maintaining all relevant papers/documents in separate file in the name of the every account holder

3.8 Issuing of a Cheque Book

A cheque book is issued to the customer at the time of the account opening or may by issued after 2-3 days from account opening. And additional

Putting account number on the form

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cheque book is issued at the request of the customer according to his/her necessity.

Followings are the formalities during issuing a cheque book:

Getting the cheque book requisition slip signed by the account holder

By verifying the signature, issuing the cheque book

Writing down the account number on each leaf of the cheque book

Making entry to the cheque issue register

Supplying the cheque book to the account holder after getting proper acknowledgement from the account holderInland Remittance Department

Remittance Department: This department deals with transfer of money from one place to another place. Remittance can be classified as inland remittance and foreign remittance; however, remittance department mainly deals with inland remittance rather than foreign remittance. Instruments used for inland remittance as under:

o Pay Order (P.O)o Demand Draft (DD)o Telegraphic Transfer (TT)

Pay Order: A Pay Order is a written order on a specific instrument i.e. generally called “Block” issued by a bank to pay a certain sum of money to specific person, Organization or a bank. It is called banker’s cheque, as it is issued by a bank as well as drawn upon on a bank.

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Issuance of Pay Order: issuance of pay order involves following steps:

Upon requests of customer, bank supplies prescribed application form

Applicant has to provide detailed particulars of him/herself as well as beneficiary or receiver of the Pay Order

Total amount of the P.O must be written both in words and in figures in the space provided

Credit vouchers are prepared; one for commission and another for VAT

Now customer is requested to deposit the P.O amount along with VAT and Commission charges to the cash department

Cash department releases the application form with authorized signature and cash received seal

Now Pay Order is written on block which has three parts: First part is retained by the issuing bank, Second part is for customer and Third part is for the beneficiary of the Pay Order

In this stage all the information is entered into the P.O register

Payment or Encashment of Pay Order:

Issuing bank makes payment of Pay Order upon presentation through clearing house. When the P.O does not consist of discrepancies, necessarily the proceeds of Pay Order is credited to the account of payee/beneficiary. However, before making payment of P.O, the signature of issuing officer is verified and date of payment is recorded in the Pay Order issue register.

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Demand Draft

A Demand Draft, which in brief is called DD. A DD is a written order on a specific instrument of one branch of a bank upon another branch of the same bank to pay a certain sum of money to or to the order of a specified person or of a specified organization. In practice DD is not issued between two branches within the same city.

Issuance of Demand Draft: Issuance of DD involves following steps: Customer is asked to fill up a form in specific form provided by

bank which is also treated as a voucher Commission and Charges are also mentioned in the form Two credit vouchers; one for commission and another for VAT

is stapled with the form Customer pays cash in the cash department with relevant

vouchers Cash dept. receives cash and delivers vouchers after completing

necessary formalities Now DD is prepared in a block Branch-wise serial number is given on the draft The draft number is written on the voucher Draft block and voucher along with the register are sent to the

officer in charge for checking and then sent to manager/Second in charge of the branch for authorization

The draft may be crossed if customer desires and finally delivered to him/her against initial or acknowledgement on the voucher

Payment of Demand Draft:

After receiving the DD, the drawer branch checks the date, amount both in words and figures and signature. In case of Test DD, Test number must be reconciled before payment. And then DD is cancelled and payment date is noted in the register. If the DD is crossed, the payment is made through clearing house.

Telegraphic Transfer

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In case of Telegraphic Transfer, which in brief is called TT, an applicant has to fill up prescribed form supplied by bank to inform all the particulars about the sender as well as the receiver/beneficiary of the TT. Besides, following points should be checked in this regard:

Full name of the beneficiary and his account number if the instruction here is “credit to beneficiary’s account”, or full address if instruction is there to advise & pay

Commission and Telegram charge are recovered from customer A cost memo has to prepare for customer in this regard;

containing the amount of TT, commission and Telegram charges

Customer has to deposit cash in the cash department along with voucher and application

Remittance depart finally checks all the particulars viz. name of the beneficiary, account number of the beneficiary, name of the bank, name of the branch and mode of payment etc.

Each and every TT must be Tested whatever the amount of TT Authorized officer then send the TT message through

Telex/Telephone The issuing branch also sends a TT confirmation advice to the

drawer branch and one copy is retained by the branch

Payment of Telegraphic Transfer (TT):

The payment of TT is paid only when TT test numbers reconcile. TT receiving branch maintains TT message receiving memo. On agreement of Test, the serial number of TT is entered in the TT payable register. The issuing branch informs if any number is mismatched or omitted. Two vouchers are prepared in this regard as under:

PBL General A/C………****** Branch----------Dr.Bills Payable A/C……..(TT payable)-------------Cr.

The TT amount is then credited to the beneficiary’s account if the beneficiary/receiver of the TT is an account holder of the branch; otherwise a Pay Order is issued if the beneficiary/receiver of TT is an account holder of another bank.

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3.9. Clearing Section:According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the cheque. Banks for credit of the proceeds to the customers’ accounts accept Cheque and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawer banks to collect the proceeds, it would be necessary to employ many messengers for the purpose. Similarly, there would be many cheque drawn on this the messengers of other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor, Risk, delay and expenditure are substantially reduced, by the representatives of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse.

3.9.1. Activities of the Section:(a) Preparation of Clearing Outward and Inward Lodgment and record maintenance of the same.(b) Batch posting as and when required.On receipt of instruments, the same is endorsed here. Then clearing section will sent IBDA to head Office for clearing purpose and on receipt of IBCA from Head Office amount is credited to customers account and vice versa. If the instrument is return then the same is given back to the customer.

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

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i) Collecting Bankerii) Paying Banker.

3.10.1. Activities of the Section: Preparing of Outward and Inward Collection Item. Inter-Branch Transfer. Batch posting and checking as and when required. Other works as and when require.

Collection is done when

(i) Paying Bank is located out side Dhaka City.(ii) Paying Bank is other branches of PBL situated inside Dhaka City.

(i) Paying Bank is outside Dhaka City: Collection department of Motijheel Branch (Principal Branch), PBL sends outward bills for collection (OBC) to the concerned paying bank to get inter Bank Credit Advice (IBCA) from paying Bank. If the paying bank dishonors the instrument, the same is returned to principal Branch.

(ii) The Paying Bank of their own branches inside Dhaka

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

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3.10.2. Procedures for Outward Bills for Collection:

3.11. Accounts Section:In banking business transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot. Improper recording of transactions will lead to the mismatch in the debit side and credit side. To avoid these mishaps, the bank provides a separate department whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called Accounts Department.Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements.

3.11.1. Functions of Accounting Department:

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deposit-slip Depositing the cheque along with

Crossing of the cheque are done indicating the Branch as collecting bank

Endorsement “Payee’s A/C will be credited on realization” is given

Entries are given in the Outward Clearing Register

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

a. Day to day functions: Here day-to-day function refers to the every

day tasks. Accounting department of PBL performs the following day to day

functions:

Recording of transaction in the cashbook, general and subsidiary ledger.

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

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

Monthly statement of deposits, loans and advances, profit and loss etc.

Quarterly statement of deposits, loans and advances, profit and loss etc.

Yearly statement of deposits, loans and advances, profit and loss etc.

Yearly statement of classified Loans and Advances. Statement of Affairs. Yearly Budget of the Branch, etc.

3.12Cash Section :

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

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vault and known as the closing balance. Money is received and paid in this section.

3.12.1 Cash Receipt: At first the depositor fills up the Deposit in Slip. For saving account

and current account same Deposit in Slip is used in this Branch. After filling the required deposit in slip, depositor deposits the

money. Officers at the cash counter receives the money, count it, enter the

amount of money in the register kept at the counter, seal the deposit in slip and sign on it with date and keep the banks’ part of the slip. Other part is given to the depositor.

In this branch, i.e., Motijheel Branch, two different officers maintain two different books for entering such entries. All deposits of saving account are maintained by one officer and other accounts by another officer.

At the end of the day entries of both of these registers are cross checked with the register kept at the cash counter to see whether the transactions are correct or not.

3.12.2. Cash Payment:

When a person comes to the bank to cash a cheque, (s)he first gives it to the computer desk to know the position of the check and posting of the cheque. If the account has sufficient fund the computer in charge will post it into the computer, will sign it and seal it.

This cheque is then sent to the concerned officer. There are two officers who verify the cheques – one for savings and similar types of account and another for current and similar types of account.

After receiving the cheque respective officer first checks it very carefully for any kind of fraudulent activity. (S) He also checks the date of the cheque, amount in word, amount in figure and signature of the drawer.

If the instrument is free of all kind of error the officer will ask the bearer to sign on the back of it.

He will then put his/her initial beside the bearers’ signature. (S)he will also sign it on its face, will write down the amount by red pen.

Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument.

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The cash officer will then enter the details of the cheque in his/her register and will pay the money to the bearer.

At the end of the day these registers will be compared to ensure the correctness of the entries.

3.13 Conclusion:Bank is the largest organization of mobilizing surplus domestic savings. Attractive Savings Schemes are offered by PBL such as Contributory Savings Scheme, Monthly Benefit Deposit Scheme, Special Deposit Scheme, Education Savings Scheme, Fixed Deposit Scheme, Prime Bank Money Scheme, Prime Bank Insured Fixed Deposit Scheme as well as different accounts to save money. Schemes are designed concentrating in different purposes to help the fixed income group people to help in need. Bank-Officials are also whole-hearted and dedicated to serve their customer with utmost care.

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4. 1 Online Branch Banking

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

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

# Cash withdrawal from his/her account at  any  branch of the Bank irrespective of location. # Cash deposit in his/her account at any branch of the Bank irrespective of location. # Cash deposit in other's account at any branch of the Bank irrespective of location. # Transfer of money from his/her account with any branch of the Bank.

Any amount can be deposited or transferred under Prime Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

Terms & Conditions of Online Branch Banking Service

ONLINE BRANCH BANKING SERVICE is designed to serve its valued clients.  Under this system, you shall be able to do the following type of transactions:  

# Cash withdrawal from your account at any  branch of the Bank # Deposit in your account at any Branch of the Bank.  # Transfer of money from your account to any other account with any Branch of the Bank

Transaction Limit

01.Maximum ceiling of cash withdrawal by self is Tk. 10,00,000/- (ten lac) only per transaction02. Maximum ceiling of cash withdrawal by third party (bearer) per transaction is below Tk............... Only (please mention the limit you wand to place).03. Cash deposit/transfer by online transaction is unlimited

Online Transaction Membership Fee

Membership fee of  Tk. 50/- per month for the Online Branch Banking Service.

Charges for Online Transaction

01.There will be no charge for transaction within the city where the account is domiciled

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02.Fee Tk. 50/- will be realized from the customer’s account for each remote transaction (inter-city)  for amount upto Tk. 1,00,000 (one lac).

03.Fee at the rate of  0.075% will be realized from the customer’s account for each remote transaction of amount more than Tk. 1,00,000 (one lac).  

Who can get this service

The Clients who has account in prime bank or who will open account in prime bank and would be interested to maintain substantial deposits in Savings, Current or STD accounts, will be eligible to get Prime Line Service.

How one can get this service

Intending and eligible clients have to apply in prescribed application form to their branch (where account is maintained) to get the online service from the bank. The client should submit two copies photographs and signature cards alongwith the application form. To avail the Prime Line service, no charge should be paid for online transaction within a locality where the account is domiciled. But charges should be paid by the customer for inter city online transaction

When a account will be activated for online

Within 15 days from the date of submission application a account will be activated for online service

Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card which created a new dimension in its customer service and consumer financing.

The Special feature of the Prime Bank Master Card is that its bears the card holder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local & International. Local cards can be used in Bangladesh only.  

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4.2 Followings are the main feature of MasterCard Credit –

01.Prime Bank Ensure High Level of Security by inserting your Photograph on the Card.

02. 20 to 50 days credit form the date of transaction. When you receive your monthly statement, you can either choose to pay in full or just minimum due amount shown on the statement. No interest is charged if you pay in full within payment due date

03. 24 hours a day, 365 days worldwide service.

04. No joining/administrative fees.  

05. waiver of annual fees for International Card: If you accumulate 20,000 Prime Bank Bonus Point for your Gold Card or, 10,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( $ 1 purchase: 1 Bonus).

06. Waiver of annual fee for Local Card:  If you accumulate 10,000 Prime Bank Bonus Point for your Gold Card or 8,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( Tk. 50/- purchase : 1 Bonus point).

07. The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-Bangkok-Dhaka. (Business Class).

08. Cash advance facilities.

09. 1,39,00,000 locations accept MasterCard worldwide

Facilities Available with the Card :

The Card can be used for:

01.Making payments to Merchants against purchase of all goods and services by the Cardholder form Marchant(s); and

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02. Availing Cash Advances:

2.1 From any of PBL Branches or any member of MasterCard of any Merchant authorized to make Cash Advances; as may be agreed upon by PBL or

2.2 By the use of the Card on any ATM of PBL or of MasterCard. Subject to these terms and conditions and in compliance with such requirements, limitations and procedures as may be imposed by PBL, any Merchant or MasterCard from time to time.

4.3 SWIFTPrime Bank Limited is one of the first few Bangladeshi Banks who have become member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication) in 1999.  SWIFT is members owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.

SWIFT No.: PRBLBDDH

Deposit Schemes of Prime Bank Limited:

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self employment , for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its

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turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

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

Contributory Savings Scheme : This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term. The Scheme is designed to help the fixed income group to save money and build up a sizable funds with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations

The salient features of the Scheme are given below:

► Minimum size of monthly installment shall be Tk. 500/- and multiplies of Tk. 1000/-.  Maximum installment size shall be Tk. 25,000/-

► The Deposit shall be for a period of 5 years.

Lump sum amount shall be paid after maturity or monthly Pension shall be paid for the next 5 years according to the size of deposit. A brief chart of lump sum amount and monthly pension installments payable are shown below:

Size of monthly deposit (Taka)

Terminal value after 5 years (Taka)

Pension for next 5 years (Taka)

500/- 40,000/- 870/-

1,000/- 80,000/- 1,739/-

2,000/- 1,60,000/- 3,478/-

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3,000/- 2,40,000/- 5,217/-

4,000/- 3,20,000/- 6,956/-

5,000/- 4,00,000/- 8,695/-

6,000/- 4,80,000/- 10,434/-

7,000/- 5,60,000/- 12,173/-

8,000/- 6,40,000/- 13,912/-

9,000/- 7,20,000/- 15,651/-

10,000/- 8,00,000/- 17,390/-

11,000/- 8,80,000/- 19,129/-

12,000/- 9,60,000/- 20,868/-

13,000/- 10,40,000/- 22,607/-

14,000/- 11,20,000/- 24,346/-

15,000/- 12,00,000/- 26,085/-

16,000/- 12,80,000/- 27,824/-

17,000/- 13,60,000/- 29,563/-

18,000/- 14,40,000/- 31,302/-

19,000/- 15,20,000/- 33,041/-

20,000/- 16,00,000/- 34,780/-

21,000/- 16,80,000/- 36,519/-

22,000/- 17,60,000/- 38,258/-

23,000/- 18,40,000/- 39,997/-

24,000/- 19,20,000/- 41,736/-

25,000/- 20,00,000/- 43,475/-

Short Term Deposit

01. A short term deposit (STD) account is a running account with amounts being paid into and drawn out of the account continuously. 

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02. These accounts are called Demand Deposits or Demand Liabilities since the banker is under obligation to pay the money in such deposits on demand.

03. These accounts are generally opened by Business Organization, Public Institution, and Corporate Bodies. 

04. An STD account may be opened by an individual person.

05. It is an interest bearing deposit. Interest is calculated on daily basis as per Banks Prescribed Rate and is credited to account on half yearly basis.

      Current interest rate on STD account is 6 Percent.

Education Savings Scheme

The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country. Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time.Moreover, we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children.With this end in view, Prime Bank Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i.e., on the basis of profit and loss sharing. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment

The salient features of the Scheme are given below:

01.The Scheme shall be implemented through all Prime branches, though it is specially designed for Islamic Banking branches.

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02. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of Tk. 5, 00,000/- at a time will be acceptable under the Scheme.

03. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR.  Branches shall use the ESS receipts that used for existing scheme.

04. The instrument shall be issued for a period of 5 years term.

05. On maturity a lump sum amount of Tk. 85,382/- shall be payable or education allowance @ Tk. 1,854/- per month per Tk. 50,000/- shall be payable on the basis of deposit amount for next 5 years starting from the completion of the term as per following table.  Income Tax @10% on interest may be deducted at source at the time of payment of lump sum amount.

Initial Deposit (Taka) Lump sum amount payable at maturity (Taka)  

Amount of Education allowance per month (Taka)

50,000/- 85,382/- 1,854/-1,00,000/- 1,70,763/- 3,705/-1,50,000/- 2,56,145/- 5,558/-2,00,000/- 3,41,526/- 7,410/-2,50,000/- 4,26,908/- 9,263/-3,00,000/- 4,69,704/- 11,115/-3,50,000/- 5,47,988/- 12,968/-4,00,000/- 6,26,272/- 14,820/-4,50,000/- 7,04,556/- 16,673/-5,00,000/- 7,82,840/- 18,525/-

Double Benefit Deposit Scheme

01.The Scheme shall be implemented through all the branches of Prime Bank Limited.

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02. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiplies thereof but maximum limit of Tk. 25,00,000/- (Taka twenty five lac) at a time will be acceptable under the scheme.

03. The instrument shall be issued for 06 (six) years term.

04. At maturity after 06 (six) years double the amount of deposit will be paid to the depositor.

05. Photograph of Nominee, duly attested by the depositor, shall be obtained at the time of opening the account.

06. Normally no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will apply:

07. (a)No benefit including interest/profit shall be allowed for pre-mature encashment within one year.

(b) If the accounts / deposits are closed / encashed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate

08. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing branch.

09. In case of death of a depositor, the amount of instrument will be paid to the nominee, to the legal heirs of the depositor on production of succession certificate.

10. In case of instrument is lost the procedure for the issuance of a duplicate receipt will be the same as applicable in case of loss of FDR.

11. Under the scheme depostior can get free insurance facility.

12. Insurance coverange is only applicable to personal accident and serious illness related insurance policy.

13 Depostor can take loan aginst his/her deposit under this scheme

14. At present no income tax will be deducted from the interest earned. But in future for any change in the government policy Bank reserves the right to deduct income tax.

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Fixed Deposit Scheme

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

Particulars Interest Rate

1(One) month 8.00%

3(Three) month 11.50% 6(Six) month 11.50%

1(One) year 12.00%

Lakhopati Deposit Scheme

(a)Monthly Installment size, tenure and terminal value of the scheme will be as follows:

Monthly Installment Size (Taka) Tenure Amount to be paid after

maturity (Taka)

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250/- 15 years 1,00,000/-

500/- 10 years 1,00,000/-

1,285/- 5 years 1,00,000/-

2,400/- 3 years 1,00,000/-

Prime Millionaire   Scheme

Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00 for the tenor of 5/7/10 years respectively

Size of monthly deposit  (in Taka) 

Investment Tenor (in Year)

After the investment Tenor the terminal value of the Scheme (in Taka)

Pension size of installment according to the years Invested (in Taka )

12,465/- 5 1,000,000/- 21,748/-

7,890/- 7 1,000,000/- 17,137/-

4,570/- 10 1,000,000/- 13,786/-

House Building Deposit   Scheme

# The tenor of the House Building Deposit Scheme will be 5/7/10 years.

# Minimum Equity building amount shall be Tk. 10.00 lac.

Size of Size of Investment Age Limit After the 

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monthly deposit in Tk.(without Insurance)

monthly deposit in Tk.(with Insurance)

Tenor (in Year)

(in Year)* investment Tenor the terminal value of the Scheme (in Taka)**

4,570/- 4,705/- 10 18 to 35 1,000,000/-

7,890/- 8,045/- 7 18 to 38 1,000,000/-

12,465/- 12,640/- 5 18 to 40 1,000,000/-

9,135/- N/A 10 18 to 35 2,000,000/-

15,770/- N/A 7 18 to 38 2,000,000/-

24,925/- N/A 5 18 to 40 2,000,000/-

* Age upper limit will be applicable for HBL facilities only ** Insurance Coverage will be restricted to terminal amount of Tk.

1,000,000/-(Taka Ten Lac) only, here the age limit will be from 18 years to 60 years

# A person can open more than one account but House Building Loan facility shall be on one account only.

# Account in the name of minors can be opened too under the Scheme but without insurance coverage.

# The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments  is acceptable.

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Chapter-V

.CAMEL Rating of 48 Banks:

The capital adequacy, Asset quality, Management standard, Earning and Liquidity rating (CAMEL) of all commercial banks on the basis of credit management performance till December 2007 have been rated by

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Bangladesh Bank (BB). It is mentionable that Prime Bank Ltd. got the top position in “A” class banks. .

CAMEL Rating : Analyzing the overall operational activities of all commercial and specialized banks; central bank, the regulatory authority of country’s banking sector has ranked 6 ‘A-class’, 27 ‘B-class’, 8 ‘C-class’,5 ‘D-class’ and 2 ‘E-class’ banks by the end of 2007, which was completed recently.

A-Class Banks:1. Prime Bank Ltd.2. Shahjalal Islami Bank Ltd.3. Commercial Bank of Ceylon.4. Citibank N.A.5. State Bank of India6. Standard chartered Bank

B – Class Banks:1. Eastern Bank Ltd.2. Premier Bank Ltd.3. The Trust Bank Ltd.4. BRAC Bank Ltd.5. Southeast Bank Ltd.6. NCC Bank Ltd.7. One Bank Ltd.8. Standard Bank Ltd.9. Woori Bank10. Bank Alfalah Ltd.11. National Bank of Pakistan.12.Dutch Bangla Bank Ltd.13.Exim Bank Ltd.14.Mutual Trust Bank Ltd.15.Jamuna Bank Ltd.16.Bank Asia17. Islami Bank Bangladesh Ltd.18. Uttara Bank Ltd.19. National Bank Ltd

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20. The City Bank Ltd21. Basic Bank Ltd.22. Habib Bank Ltd.23.HSBC24. Pubali Bank Ltd.25.Mercantile Bank Ltd.26.Social Investment Bank Ltd.27.Dhaka Bank.

C- Class Banks: 1. First Security Bank Ltd. 2. UCBL 3. Al-Arafa Islami Bank 4. Bangladesh Shilpa Rin Sangstha 5. IFIC Bank Ltd. 6. AB Bank Ltd. 7. Agrani Bank Ltd. 8. Rupali Bank Ltd.

D- Class Banks:

1. Sonali Bank Ltd. 2. Bangladesh Krishi Bank 3. Bangladesh Shilpa Bank 4. Janata Bank Ltd. 5. RAKUB

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E-Class Bank: 1. Bangladesh Commerce Bank Ltd. 2. Oriental Bank Ltd.

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After observing the operation procedure of PBL, I recommended the following:

ATM: Prime Bank has few ATM booths in the Dhaka city, but these are not sufficient to give service to the customer’s .So Prime Bank has arranged an agreement with Dutch Bangla Bank limited so that the customers of the Prime Bank can use its booth. To give smooth service to the customers Prime Bank should increase its own ATM Booth.

Branch: Prime Bank should open branches in the all district towns besides Dhaka city for expansion its business area.

Interest Rate: Prime Bank should Increase interest rate on FDR and other deposit scheme.

Islamic Banking Branch: Bangladesh is a Muslim majority country, so Prime Bank should increase their Islamic Banking Branch in Bangladesh.

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In Bashundhara branch I have been working for 3 months, by this time I have found some good strengths and opportunities, Prime Bank Bashundhara Branch has a strong opportunity to achieve strong market in Bashundhara area because it is situated in a appropriate and attractive place. In short time Bashundhara Branch gathered 30 core deposit, this is a great achievement for Bashundhara branch and also achieving healthy profit as a new branch. From my view, this branch has some Strengths and Problems these are:

Strengths

1. Prime Bank has well reputation in the market. It is number one Private commercial Bank in Bangladesh.

2. In Bashundhara branch efficient management practice.

3 Bashundhara branch is Well-furnished and Air-conditioned Bank.

4. Prime Bank’s Officers are highly educated.

5. Prime Bank’s Executives are highly qualified and experienced.

6. Credit Department of Bashundhara branch is strong prospective department.

7. Prime Bank gathered maximum market share in Banking business.

8. Prime Bank not engaged in unfair business practice.

9. Prime Bank has many attractive deposit schemes. 10. Prime Bank becomes more reliable to the all kind of people.

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Problems:

I have founding some problem in Bashundhara branch prime bank

1. In Bashundhara branch have no foreign exchange division and this major problem of this branch.

2. Bashundhara branch taking only DESCO bill. But not taking others bill like telephone, water, gas bill etc.

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1. Different types of publications.

2. Discussion with the employee of particular Branch.

3. Practical experience from Branch

4. Website: www.prime-bank.com

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